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SADC boosts support towards Namibia in developing a CBM National Strategy (SADC)
The Southern African Development Community (SADC), in collaboration with the Namibia Revenue Agency (NamRA) convened a workshop in Windhoek, Namibia from 29th February 2024 - 1st March 2024 to validate the Draft Coordinated Border Management (CBM) National Strategy.
The Namibia CBM National Strategy demands a coordinated approach by border control agencies in seeking greater efficiencies in managing the flow of legitimate trade and commerce, while satisfying compliance requirements and national security interests. The Strategy will assist Namibia in simplifying and harmonising trade documentation and border procedures, as well as enhancing the predictability of control procedures based on risk management of border agencies.
Tanzania raises budget to $19bn on polls, Afcon costs (The East African)
Tanzania’s Finance Ministry has proposed a Tsh49.34 trillion ($19.35 billion) budget for the 2024/2025 financial year, an 11 percent increase from the Tsh44.4 trillion ($17.41 billion) in 2023/2024.A big chunk of expenditure is expected to go the elections and preparations for the 2027 Africa Cup of Nations (Afcon) finals, which Tanzania is hosting jointly with Kenya and Uganda.
According to budget guidelines announced by Finance Minister Mwigulu Nchemba this week, recurrent spending will go up to Tsh33.55 trillion ($13.15 billion), from Tsh29.17 trillion ($11.44 billion) in the current fiscal year, as the government prepares for local government elections in October and the 2025 general election.
Nigeria Considers Possibility of ECOWAS Single Currency as Naira Dips (Legit.ng)
Nigeria’s finance minister and coordinating minister of the economy, Wale Edun, remains hopeful about the feasibility of the proposed monetary union and single currency for the West African Monetary Zones (WAMZ).This comes despite the recent failure of member states to meet the established convergence criteria.
The development follows an earlier report by Legit.ng that Nigeria has yet to decide on the next course of action for the adoption of the Economic Community of West African States (ECOWAS) single currency, “Eco”, by member states. This is subsequent to the failed promise by ECOWAS to begin the use of the regional bloc’s single currency in 2020.
Edun’s optimism on the eventual use of the single currency follows the release of the latest progress report on the project, which revealed a decline in performance scores for WAMZ member states. According to BusinessDay, in 2023, these states not only fell short of meeting the criteria for adopting a single currency but also saw their performance score decrease to 29.2% from 41.7% in 2022. The single currency initiative entails each member state meeting four key criteria: maintaining an inflation rate of 5%, sustaining a fiscal deficit GDP ratio of 4%, limiting deficit financing by the central bank to 10%, and ensuring a sufficient level of gross official foreign exchange reserves equivalent to at least six months of imports.
Thirty-one countries to start trading under AfCFTA Agreement this year (Engineering News)
Amid the increasing importance of intra-African trade, 31 countries are expected to start trading under the African Continental Free Trade Area (AfCFTA) Agreement by the end of the year, South Africa’s Department of Trade, Industry and Competition Trade Branch Africa bilateral economic relations chief director John Rocha said during a March 14 Transport Forum webinar. Supply chain advisory company Sincpoint CEO Lebo Letoalo highlighted that the AfCFTA is the largest free trade area globally connecting 1.3-billion people across Africa.
She added that the AfCFTA was aimed at transforming Africa into “the global powerhouse of the future,” adding that the agreement would progressively eliminate tariffs on intra-African trade, making it easier for African businesses to trade within the continent and benefit from the growing African market.
The AfCFTA was also aimed at encouraging increased beneficiation in Africa. “We need to get to a point where we reduce commodity dependence and foster diverse resilient economies.” However, Letoalo pointed out that a lack of efficient transport and logistics infrastructure added about 30% to 40% to intra-African trade costs, thereby stifling growth and hindering progress.
Hence, the AfCFTA provides opportunities for investment in the expansion and upgrade of Africa’s logistics infrastructure, including ports, roads, railways and warehouses, to facilitate the seamless movement of goods across Africa and link it to the global market. Automated systems will also be integrated into the supply chains to enable faster and more cost-effective transportation.
See also: SA, Ghana must push AfCFTA to improve trade (IOL)
“Africa Needs Trade, Not Aid” (Liberiann Observer)
With a population of 1.2 billion people, the African continent should prioritize intra-trade and investments amongst its people and countries, Speaker of the House of Representatives, J. Fonati Koffa, has urged African leaders and other stakeholders on the continent. He emphasized the importance of prioritizing intra-trade and investments within Africa to boost economic growth. He advocated for open borders, a single currency, and the leveraging of technology as key factors in promoting trade over aid on the continent.
“As I am given this platform or any other, I will continue to preach the dual theme of open border and single currency because a continent of 1.2 billion people should depend on trade not aid,” the Speaker told stakeholders in a special statement at the 12th African Leadership Magazine Persons Of The Year Awards ceremony held in Addis Ababa, Ethiopia, on Friday. “It is my submission that for us to build resilient African economies, we need open borders, embrace, invest and leverage technology and move faster towards a single African currency.”
Green hydrogen: The future of African industrialisation? (ECDPM)
While exports present opportunities to some African countries, the risks can also be considerable, given the chicken-and-egg situation between low-cost production of green hydrogen and large-scale consumption in decarbonised industries. Exports, however, are only part of the picture.
Many African countries are developing highly ambitious hydrogen economy strategies (figure map). The underlying assumption is that cheap hydrogen can be a game changer for their economies, and can ‘flip the script’ from energy poverty to green energy leadership. At the same time, initiatives like the Africa Green Hydrogen Alliance, between Egypt, Kenya, Mauritania, Morocco, Namibia and South Africa, and several national strategies have an implied sequencing between export markets and domestic hydrogen economies: Exports of hydrogen, ammonia, and other derivatives like e-fuels create “breakthrough opportunities” to develop the sector today, while unlocking domestic opportunities for decarbonised heavy industries tomorrow.
Realizing Africa’s demographic dividend: A call to action (Brookings)
Africa stands at a crossroads, facing both unprecedented opportunity and daunting challenges on the path to realizing its demographic dividend. With a youthful population that could potentially fuel a transformative wave of economic growth and development, the continent is poised for significant progress. However, several formidable hurdles stand in its way. Among these challenges, the role of medium, small, and micro enterprises (MSMEs) emerges as a critical factor, with limited access to finance and loans, stringent collateral requirements, and a lack of capacity-building opportunities posing significant barriers to the growth of these businesses. Furthermore, the broader issue of financial inclusion amplifies these challenges. In addressing these multifaceted problems, Africa must overcome these hurdles to harness the promise of its youthful population, ultimately turning demographic potential into lasting socioeconomic progress.
Digital finance boosting women’s financial inclusion in sub-Saharan Africa: Emerging evidence (Brookings)
In the 10 years leading up to 2021, the share of women in sub-Saharan Africa who owned a financial account more than doubled to reach 49%, according to data from the Global Findex. Since 2017 alone, account ownership rates for women in the region increased 12 percentage points, driven entirely by increased adoption of mobile money accounts.
Mobile money is a financial service offered by a telecom or a fintech firm that partners with mobile network operators independent of the traditional banking network (this is different from traditional banking services accessed through a mobile phone). Mobile money services are typically enhanced by local mobile agents, where women can conveniently deposit even small amounts of cash to make payments, pay bills, send remittances, or store money outside of the home.
Two striking examples include Cameroon, where account ownership for women increased from 30% in 2017 to 49% in 2021, including a 26 percentage point increase in mobile money accounts, and Ghana, where account ownership for women increased from 54% to over 63%, including a 21 percentage point increase in mobile money accounts.
The continued growth in financial access is excellent news, given evidence showing the ways women benefit from having their own financial accounts. These include greater personal safety and less exposure to theft, more say over how household resources are spent, and greater ability to receive money from friends and family in the event of an emergency.
SADC aviation leaders call for open skies to promote economic growth in the region (IOL)
According to Natalia Rosa, the project lead on SADC Business Council Tourism Alliance, the current state of aviation in SADC is a massive own goal for the region’s economies and the region can talk about a free trade area and regional integration, however, if people and goods can’ t move efficiently then it’s all just empty promises. Rosa was speaking at the Southern African Industrialisation Forum (SAIF) held in Sandton recently.
Why Internet disruptions have rocked parts of Africa (The East African)
Damages on multiple undersea telecommunication cables are the cause of a far-reaching connection outage that rocked parts of the African continent for the second day on Friday, with operators and Internet watch groups warning that the situation could take weeks if not months to fix. As of the close of Friday, at least eight countries in the continent had reported major connectivity issues even as details regarding the cause of the sub-sea cable damages remained scanty.
According to reports by global media networks, the cable lines affected included the West Africa Cable System (WACS), MainOne, South Atlantic 3 and ACE sea cables—all of which are regarded as key continental arteries for telecommunications data.
Among countries that took the biggest hit included Côte d’Ivoire, Liberia and Benin while Ghana, Nigeria, Cameroon and South Africa reported mild disruptions. Others affected included Burkina Faso, Gambia, Guinea, and Niger.
Internet blackout an attack on Africa’s trade, democracy – Agumenu (Ghana News Agency)
Dr Donald Agumenu, a leadership and management expert, has described the internet blackout experienced in parts of the African continent as “suspicious threat to its trade and democracy”. He said it was unfortunate that major trading blocs in Africa were hit by the cyber storm, disrupting trading activities.
Dr Agumenu said it was also worrying that it occurred when some of those countries were seriously preparing for elections. He said the excuse for an undersea cable disruption should not be taken lightly, saying, there were more to it from a geo-cyberpolitical perspective that needed to be explored to its logical conclusion.
“Africa may experience a more complex internet and cyber warfare if the techno-revolutionary narrative remains the same. What is more worrying is the level of vulnerability it brings to a continent with over half a billion people online.” “We need to wake up to the fact that the era of ICT and digital transformation has ushered in a new community with its own complexities and that we need to manage this paradigm shift with the utmost care to stay afloat in global affairs,” he cautioned.
EAC partner states ignite federation quest (IPP Media)
President Samia Suluhu Hassan at midweek hosted Kenyan President William Ruto and Ugandan counterpart Yoweri Museveni in a meeting aimed to discuss East African economic and political integration. The meeting held on Thursday evening at the Tunguu State Lodge in Zanzibar, saw the three leaders agreeing on the need to hasten public hearings on the structure and areas to be considered in a draft constitution for East African political federation.
This exercise has already been conducted in Burundi, Uganda and Kenya, it said, with the president saying in the X post that “apart from other things, we have also discussed measures to take to ensure that citizens in the EAC benefit from available economic opportunities.” The leaders also discussed the importance of heightening security and safety as a major pillar helping the various countries attain development goals.
President Museveni similarly affirmed that the discussion was centred on the significance of the East African Community (EAC) attaining political federation, “which would most certainly guarantee the prosperity of our people.”
On the other hand, President Ruto said that the discussion was focused on the fast tracking of the federation. “Today, as leaders among the eight EAC partner states, we reaffirm our unwavering support for further regional integration and prosperity, focusing on fast-tracking the federation,” the Kenyan leader wrote on X.
Red Sea, Suez Canal crisis fuels fresh wave of rate hikes in East Africa (The East African)
East African central banks are facing a fresh wave of rate hikes to contain inflationary pressures emanating from surging shipping and insurance costs for vessels diverting from the Suez Canal as a result of the Middle East conflict which continues to disrupt the flow of goods through the Red Sea.
The Bank of Uganda (BoU) recently convened a Monetary Policy Committee (MPC) meeting that increased its policy rate by 50 basis points to 10 percent to deal with the new inflation threats. This signals likely rate hikes in Kenya and Tanzania, whose 15 percent and 10 percent, respectively, of foreign trade goes through the Egyptian waterway, according to data by the United Nations Conference on Trade and Development (Unctad).
“Risks to the inflation outlook remain highly dependent on the global and domestic environment. Specifically, higher global commodity prices, partly due to geopolitical tensions and an increase in shipping costs resulting from the Middle East conflict as well as tighter global financial market conditions could result in higher domestic inflation,” BoU’s deputy governor Michael Atingi-Ego said in a statement dated March 6.
US-East Africa trade summit set for April (CAJ News Africa)
The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit will advocate for enhanced partnership and investment in the United States-East Africa trade. AmCham is the premier platform for strengthening bilateral trade and investment between the US, Kenya, and East Africa. The upcoming edition is set to be held on April 24–25, in Nairobi, Kenya.
AmCham’s Board President, Peter Ngahu highlighted that the summit would explore opportunities to promote sustainable and inclusive growth while increasing investment in Kenya and the East African region. “As we celebrate years of shared value and interests, the AmCham Business Summit stands as a beacon of opportunity. We look forward to exploring how we can leverage these opportunities as we stay committed to helping drive investments in East Africa,” Ngahu said.
A wide range of topics critical to the region’s economic development, including shaping the future of US-East Africa trade and investment, climate action, digital transformation, and sustainable finance for East African economies, will be covered in a series of panel discussions, keynotes, and roundtables moderated by experts from the public and private sectors.
Co-convenors mark March round of e-commerce negotiations an important milestone (WTO)
During the second round of e-commerce negotiations in 2024, held from 11 to 14 March, e-commerce negotiators reviewed a second iteration of the Chair’s text that had been circulated shortly before the WTO’s 13th Ministerial Conference. Co-convenors of the talks — Australia, Japan and Singapore — said that this version is comprehensive and could pave the way for the conclusion of the agreement by the summer.
Progress Report: Sustainability, Digitalization and Safety in Air Cargo (IATA)
The International Air Transport Association (IATA) reviewed progress in digitalization, safety and sustainability at the opening of the IATA World Cargo Symposium with the aim of accelerating progress on these critical priorities. “Air cargo volumes are now firmly back to pre-pandemic levels. The challenge now is to ensure that air cargo growth is efficient, safe and aligned with achieving net zero carbon emissions by 2050. Through the hard work of the air cargo industry, the building blocks are in place to significantly accelerate progress in all these areas,” said Brendan Sullivan, IATA’s Global Head of Cargo at the World Cargo Symposium (WCS), which opened in Hong Kong, on 12 March.
UNCTAD urges reforms on global debt architecture amid rising distress (UNCTAD)
UNCTAD has called for urgent reforms to the global debt architecture to avert a widespread debt crisis among developing countries. 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.
The rising debt costs are draining vital public resources needed for development. About 3.3 billion people – almost half of humanity – now live in countries that spend more money paying interest on their debts than on education or health. The UN’s “A World of Debt Dashboard” provides data and in-depth insight on key public debt and development spending indicators for 188 countries.
“This situation is clearly unsustainable,” Ms. Nesvetailova says. “While a systemic debt crisis, in which a growing number of developing countries move from distress to default, looms on the horizon, a development crisis is already underway.”
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Trade Policy Review: Angola (WTO)
Brazil reaffirms bond with Africa (The Independent Uganda)
Understanding rules of origin: Getting the details right (Trade Finance Global)
Russia formally accepts Agreement on Fisheries Subsidies (WTO)
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tralac Daily News
Industrial gas users prepare to make ‘orderly transition’ case at crunch gas-cliff meeting (Engineering News)
The creation of a formal public-private platform to assess solutions to a pending “gas cliff” for industrial consumers in South Africa points to the fact that the issue is finally being taken seriously by all stakeholders, Industrial Gas Users Association of South Africa (IGUA-SA) executive director Jaco Human tells Engineering News.
Speaking at the African Energy Indaba, Mineral Resources and Energy Minister Gwede Mantashe said the task team had been established “to develop a joint strategy that will ensure a seamless transition and business continuity, thus ameliorating potential job losses”. Mantashe also announced that the efforts would be supported by the finalisation of the Gas Master Plan, which would be presented to Cabinet in March, and various collaborative efforts being pursued with the Mozambique government, including on the proposed Matola liquefied natural gas (LNG) hub.
Kenya posts $1.2bn surplus in trade with Africa (The East African)
Kenya’s earnings from goods exported to African countries exceeded expenditure on imports by a record Ksh164.04 billion ($1.22 billion) in 2023, provisional data shows, boosting the government’s renewed push for integration of markets on the continent. The value of goods sold to other countries in the continent amounted to Ksh431.89 billion ($3.22 billion) last year, a growth of 22.99 percent over Ksh351.16 billion ($2.62 billion) the year before.
The increased earnings came at a time when expenditure on imports remained largely flat, rising a measly 0.31 percent to Ksh267.86 billion ($2 billion), according to data collated by the Central Bank of Kenya (CBK).
The Southern African Development Community (SADC) region is actively working towards promoting and advancing the growth of the regional leather value chain, which is among the 32 priority value chains in the region. The leather value chain aligns to the regional strategic objectives which seeks to advance industrialisation and regional integration through the agricultural and natural resource led economic growth.
As part of the implementation of the Support to Industrialisation and Productive Sectors Programme (SIPS), the SADC Secretariat, in partnership with the Ministry of Trade and Industry of the Republic of Malawi, hosted a 2-day strategic workshop on 12-13 March 2024 in Blantyre, Malawi to develop a national Strategic Workplan as part of the domestication of the Regional Leather Value Chain Model Policy Framework.
Delivering the keynote address on behalf of the Permanent Secretary of the Ministry of Trade and Industry, Ms. Gladys Chimpokosera, Deputy Director of Industry in the Ministry of Trade and Industry for Malawi, emphasised that the workshop is aligned with the specific objectives outlined in Malawi’s Vision 2063. The Vision places impetus on industrialisation through promotion of research, science, technology and innovation as well as education and skills development to promote product development and design.
Nigeria’s top 10 import trading partners (Business Insider Africa)
Nigeria engages in the international trade game for several reasons. Sometimes it is to fill in the gaps where resources are lacking; other times, it is to keep up with the latest and greatest technology. And, of course, there’s also the need to meet the demands of a ballooning citizenry.
According to the National Bureau of Statistics in its latest “Foreign Trade Statistics” in Q4 of 2023, the total import value hit ₦14,108.33 billion. This represents a 56.04% surge compared to Q4 2022 (₦9,041.24 billion) and a staggering 163.08% jump compared to the same quarter in 2022 (₦5,362.83 billion). The boost in import value during the quarter was mainly driven by the import of ‘Tanks and other armored fighting vehicles, motorized, whet,’ which accounted for ₦5,061.25 billion.
Talking about imports, the top five trade partners were Singapore, bringing in goods worth ₦5,092.36 billion (or 36.09%); China, with ₦2,060.59 billion (or 14.61%); Belgium, with ₦1,140.97 billion (or 8.09%); India, with ₦908.59 billion (or 6.44%); and the USA, contributing goods valued at ₦512.99 billion (or 3.64%).
Expert highlights advantages of changes made to the customs tariff (Angop)
The technician from the Northern regional department of the General Tax Administration (AGT), Dionísio Domingos, highlighted, on Wednesday, in Ndalatando, Cuanza-Norte province, the advantages of the changes made to the national customs tariff. He considered that the changes inserted as part of the customs tariff review will help develop the economy, encourage national production and reduce imports.
The revision of the Act, which comes into force from April this year, is a result of compliance with the Constitution of the Republic and the regulations of the world Customs and Trade organizations. Dionísio Domingos provided this information during a lecture on “The dissemination of changes to the New Customs Tariff”. He highlighted that the review of the national customs tariff takes place every five years to confirm it to international regulations, promote an increase in production, exports, State revenue and reduce smuggling.
Among the changes, the new agenda enshrines tax exemptions for the import of agricultural inputs, machinery, medicines and other goods with a low level of production on the national market, in addition to attractive rates for the primary sectors of the economy.
UNDP boosts Ghanaian MSMEs AfCFTA participation with US$70,000 grant (GhanaWeb)
Ghanaian Micro, Small, and Medium Enterprises’ (MSMEs) participation in the African Continental Free Trade Area (AfCFTA) gets a major boost with a $70,000 grant. The United Nations Development Programme (UNDP)/Absa Bank Ghana partnership is part of a series of business development activities, which has already supported about 3,000 enterprises over the past four years.
Under the current programme, some 18 MSMEs that qualified from an innovation pitching competition would be supported to scale and firm up their operations and leverage opportunities presented by the continental free trade. Dr Angela Lusiga, UNDP Resident Representative to Ghana, expressed confidence in the programme helping address the financing gap for MSMEs, and for them to be fully prepared to participate in AfCFTA.
“We started with a survey where we asked MSMEs what they knew about AfCFTA. We found out that there were many enterprises that didn’t even know about AfCFTA. Most of them didn’t know much about the opportunities and products that are allowed under the AfCFTA,” she said. Dr Lusiga said UNDP had effectively addressed the awareness deficit about the AfCFTA with the beneficiary MSMEs through working with the National Coordination Office of AfCFTA to spread awareness of the agreement in different districts.
EAC member states to develop GMO policy despite debate (NTV Uganda)
The East African Community (EAC) member states have agreed to develop a policy on genetically modified organisms (GMOs) despite mixed feelings on whether the region should adopt the technology. Kenya’s Cabinet Secretary in charge of the EAC, Peninah Malonza, told the regional assembly sitting in Nairobi, Kenya, that the member states will soon enact a regional policy to guide the implications and regulate the use of GMOs. Today, the assembly’s committee on Agriculture, Tourism, and Natural Resources tabled a report in which the legislators assessed the region on the adoption of GMOs.
Local experts share insights on what a common currency would mean for East African integration (The Citizen)
Economic experts have outlined the potential of using a common currency in the East African Community (EAC), stating that it will deepen economic integration. The eight-member regional bloc aims to achieve a Monetary Union or Single Currency by 2031. The experts argue that the common currency stage will generate more economic benefits for residents and states through trade facilitation.
An economist and lecturer at the University of Dar es Salaam (Udsm), Dr Mwinuka Lutengano, said the common currency would be beneficial, especially in facilitating trade. “By adopting a common currency, EAC member states will eliminate the need for currency conversions and associated transaction costs. This streamlines trade transactions, making it easier and cheaper for businesses to conduct cross-border trade,” he said. He added that the use of a single currency would allow businesses within the region to price their goods and services more efficiently, leading to increased competitiveness and potentially higher export volumes.
Ruto joins Museveni, Suluhu in Zanzibar to discuss EAC political federation (The Star)
President William Ruto on Thursday traveled to Zanzibar to meet Ugandan President Yoweri Museveni and Tanzania’s President Samia Suluhu. The meeting, the three Heads of State said was organised to discuss matters in the East African Community. “Today, as leaders among the eight EAC partner states, we reaffirm our unwavering support for further regional integration and prosperity, focusing on fast-tracking the federation,” Ruto wrote on X.
Communication from Ikulu in Tanzania said that the presidents in the meeting agreed on the need to hasten the public participation exercise on the structure and areas to be considered in the Draft Constitution of the East African Community Political Federation.
The vision of the meeting, Ruto said, is to promote the unity of the communities in the three member states, to harness the economic benefits of creating a larger market, and the imperative of security for stability within the expanded Community. The Political Federation, if formed, will be founded on three pillars; common foreign and security policies, good governance and effective implementation.
East African Petroleum Conference 2025 preparations commence as Uganda hands over to Tanzania (EAC)
The stage is set for the 11th East African Petroleum Conference and Exhibition 2025 (EAPCE’25), scheduled to take place from 5th – 7th March, 2025 in Tanzania. Organized by the East African Community (EAC) Secretariat and the EAC Partner States, the event anticipates attracting over 1,000 participants. Under the theme “Unlocking Investment in Future Energy: The Role of Petroleum Resources in the Energy Mix for Sustainable Development in East Africa”, the 2025 edition aims to highlight the region’s petroleum potential and investment opportunities.
The Regional Steering Committee for EAPCE’25, comprised of experts from the EAC Partner States, convened in Zanzibar, Tanzania for a pivotal meeting marking the official commencement of preparations. The Chairperson of the Regional Steering Committee, Deputy Permanent Secretary, Ministry of Energy Tanzania, Dr. James Mataragio emphasized the conference’s significance, noting its evolution into the region’s premier petroleum event.
Looking ahead to 2050, the EAC envisions a sustainable, affordable, and secure energy mix to meet regional needs. With a focus on access, capacity, efficiency, and sustainability, the region aims to transform its energy landscape, ensuring efficient distribution of petroleum products and strategic reserves.
Central Africa Says Economic Bloc Poorest, Integration Stagnant at 4% (Voice of America)
The Central African Economic and Monetary Community, CEMAC, marks its 30th anniversary this week but by some measures has little to celebrate. The bloc says member countries conduct most of their trade with outside countries and have made little attempt to break down economic barriers between them, leaving CEMAC the least developed and poorest economic bloc in Africa.
Officials say the Central African Economic and Monetary Community remains the least integrated economic bloc in Africa, despite its very strong economic and social potential. CEMAC officials say member countries conduct more than 80 percent of their foreign trade with Europe, China and Russia – and only 4 percent with each other.
Sylvestre Michel Nkou is an economic adviser to the Congo government and CEMAC. He spoke during celebrations marking the economic bloc’s 30th anniversary in Yaounde Thursday. Nkou says CEMAC member states should emulate the Economic Community of West African States, in which civilians and merchants move from one country to the other without fear of police harassment, brutality or the confiscation of their goods. He says poverty will be reduced in central Africa and the economic bloc will cease to become the poorest on the continent when integration becomes a reality, not a political slogan.
Africa CEO Forum 2024: Leaders convene in Kigali to shape continent’s future (The Citizen)
As Africa grapples with pressing global challenges, the 2024 Africa CEO Forum is poised to address the continent’s pivotal moment. Set for May 16th and 17th in Kigali, Rwanda, this year’s forum poses a critical question: Will Africa seize the opportunity to lead or risk being sidelined in history?
With the theme “At the Table or On the Menu? A Critical Moment to Shape a New Future for Africa,” the 11th edition of the Africa CEO Forum emphasizes the urgency for African leaders to unite and forge a path forward amidst economic shifts and uncertainties. For over a decade, the Africa CEO Forum has served as a gathering ground for the continent’s most influential figures in business, innovation, and policy-making. This year’s event will focus on four transformative agendas: leadership, digital transformation, continental integration, and financing.
Amidst the gathering, leaders will engage in panel discussions, workshops, and roundtables aimed at strategizing for growth, fostering innovation, leveraging the African Continental Free Trade Area (AfCFTA), and overcoming financial obstacles. The forum aims to catalyze actionable solutions to accelerate Africa’s progress and prosperity.
Africa seems to be embracing the Russian currency at the expense of the dollar (Business Insider Africa)
A report by Sputnik Africa showed that the use of the Russian currency for trade between Russia and Africa has more than doubled since 2022. This information is according to the Central Bank of Russia which disclosed that the percentage in rubles of Russian-African settlements doubled in 2023 compared to the year prior. In 2022, the percentage of Russia-African trade transacted in rubles came in at 21.9%, while 2023 figures were twice that at 48.1%.
The Russian Central Bank also reported that there has been a substantial rise in the amount of ruble settlements in other regions outside of Africa including with American countries. The trade-in rubles between American countries and Russia rose from 22.7% to 35.1%. Likewise with Asian nations, the ruble’s percentage increased from 20.5% to 24%.
The shift toward local currency transactions represents a turning point in the development of the world economy. For the foreseeable future, the dollar will definitely continue to dominate international banking. Still, the emergence of local currency trading indicates a larger move towards a more decentralized and multipolar monetary system.
Africa awaits French bid to ban $1bn second-hand clothes trade (EUobserver)
France’s attempts to impose an EU-wide ban on the export of used clothes will be watched closely by dozens of African countries, that receive millions of tonnes of used clothes each year. On Thursday (14 March), the French national assembly approved a new law that would gradually impose fines of up to €10-per-item of clothing by 2030, as well for a ban on advertising for such products.
On the same day, the environment ministry in Paris told Reuters that it would push for an EU ban to be discussed at a meeting of EU environment ministers on 25 March, with the support of Sweden and Denmark.
Trade data from the United Nations shows the EU exported 1.4m metric tons of used textiles in 2022. A European Environment Agency report in 2023 showed that Europe dumps 90 percent of its used clothes in Africa and Asia, warning that clothes can cause pollution in African countries where items that cannot be resold end up in dumps.
‘Uplifting women in decision-making relevant for public, private institutions’ (IPP Media)
President Samia Suluhu Hassan has urged public and private institutions to increase efforts to ensure that more women have an opportunity to be in various decision making bodies. She was gracing an opening ceremony for the launch of the Tanzania Women in Financial Sector Association (TAWiFA) at Kizimkazi Township in Unguja South Region, organised by TAWiFA in collaboration with the Tanzania Insurance Regulatory Authority (TIRA) and the Mwanamke Initiatives Foundation (MIF).
The one-day event brought on board participants from both sides of the union, where apart from the launch of the association, the event gave a platform to extensively discuss how to overcome the challenges they face.
Pollution – a Threat To Our Groundwater Resources (Inter Press Service)
Groundwater pollution significantly affects the prevalence of waterborne diseases. This form of pollution occurs when hazardous substances, such as pathogens, chemicals, and heavy metals, seep into underground aquifers, the primary source of drinking water for approximately 70% of the 250 million people living in the SADC region.
“The link between contaminated groundwater and waterborne diseases underscores the urgency of protecting these vital water resources. To mitigate these dangers, concerted efforts are required to prevent pollutant infiltration, monitor water quality, and enhance water treatment facilities”, said Gerald Mundondwa, SADC-GMI Senior Groundwater Specialist.
Addressing these challenges is pivotal for the preservation of groundwater quality and the prevention of the dire ecological and health repercussions associated with its contamination.
Commonwealth Law Ministers encouraged to enable move to paperless trade (The Commonwealth)
This March, Commonwealth Law Ministers were encouraged to enable the move to paperless trade by undertaking legal reform allowing digital trade documents to have the same force in law as paper-based documents. At the Commonwealth Law Ministers Meeting in Zanzibar, Tanzania, held from 4-8 March, the Commonwealth Connectivity Agenda (CCA) presented its Working Group on Legal Reform and Digitalisation to Ministers and senior legal officials.
Whilst the CCA Trade Specialist Mr Niels Strazdins noted that the Working Group and its outputs will play a crucial role in helping member states unlock up to US$1.2 trillion in additional Commonwealth trade by moving to paperless trade. This number includes a potential US$90 billion in savings from the cost reductions resulting from the move to digital processes, and an additional US$1.1 trillion in additional trade resulting from greater access to finance, according to CCA research.
Making artificial intelligence work better for consumers and societies (UNCTAD)
The growing presence of artificial intelligence (AI) in consumers’ lives has put our societies at a crossroads, said UNCTAD Secretary-General Rebeca Grynspan, marking World Consumer Rights Day on 15 March. The secretary-general was addressing an event in Geneva on consumer experience and generative AI, gathering international organizations, businesses and consumer rights groups.
Advancing at breakneck speeds, data-driven AI holds vast promise for consumer welfare, through personalizing products and services, optimizing customer support, and addressing disputes online. But at the same time, there are growing concerns over the fair, responsible and ethical use of AI,
UN Paper Discusses Governments’ Role in Regulating and Using AI for the SDGs (IISD)
The UN Secretariat has published a paper prepared by members of the UN Economic and Social Council (ECOSOC) Committee of Experts on Public Administration (CEPA) discussing ways in which artificial intelligence (AI) governance can help reinforce the 2030 Agenda for Sustainable Development and leave no one behind. Its findings will inform the Committee’s deliberations in April.
Titled, ‘Artificial Intelligence Governance to Reinforce the 2030 Agenda and Leave No One Behind,’ the paper (E/C.16/2024/7) highlights AI’s “immense” potential benefits, “augmenting human capabilities, increasing the well-being of people and contributing to the betterment of society.” It recognizes that AI is evolving at an “unprecedented” pace, warning of many challenges, risks, and ethical concerns that must be urgently addressed. The paper underscores that as regulators and users of AI, governments have an especially important role to play in making sure AI contributes to sustainable development and improves people’s lives.
Expert Urges Rethink of Business Paradigm to Protect Earth, Human Rights (IISD)
In his report to the Human Rights Council (HRC), UN independent expert on human rights and the environment David Boyd warns that humanity is exceeding planetary boundaries. The report calls for “an urgent rethinking of the business and economic paradigms that have pushed civilization to the brink of disaster.”
The report of the Special Rapporteur on the issue of human rights obligations relating to the enjoyment of a safe, clean, healthy, and sustainable environment is titled, ‘Business, Planetary Boundaries, and the Right to a Clean, Healthy and Sustainable Environment’ (A/HRC/55/43). It points to the “inadequacies of voluntary normative frameworks for ensuring that businesses respect human rights and clarifies State obligations to protect the right to a clean, healthy and sustainable environment from harms caused by businesses.”
The report calls for “systemic and transformative changes” to achieve a just and sustainable future. These include new business models, climate and environmental laws that incorporate planetary limits, fiscal policies that internalize externalities and reduce inequality, and societal goals that replace gross domestic product (GDP) and limitless growth.
Small business investing abroad: Why it matters and what needs to happen next (UNCTAD)
Foreign direct investment by small- and medium-sized businesses (SMEs) has been falling in recent years. Between 2015 and 2022, the number of overseas greenfield investment projects by SMEs dipped by about 75%, according to a new UNCTAD report published on 6 February.
“SME investment can be most beneficial for development,” says Amelia Santos-Paulino, head of investment issues and analysis at UNCTAD. “Because these businesses are more agile, relying more on local suppliers and partners, and less likely to crowd out local firms.”
SMEs can become a real game changer, especially when globally, there’s increasing competition for a shrinking pool of large-scale projects, and an accelerating trend towards regional economic integration. But in practice, SME investors commonly grapple with financial and information constraints, and difficulties navigating complex regulations. Adding to the challenge is an international context where policy efforts to facilitate and promote investments are often geared towards attracting large multinational enterprises (MNEs).
‘Record high’ in UN development index masks stark disparities (UN News)
According to 2023-24 Human Development Report from the UN Development Programme (UNDP), the Human Development Index (HDI) stands at a new high following steep decline during 2020 and 2021 due to the COVID-19 pandemic. Rich countries experienced unprecedented development, the Human Development Report details, yet half of the world’s poorest nations continue to languish below their pre-COVID crisis levels.
“The widening human development gap revealed by the report shows that the two-decade trend of steadily reducing inequalities between wealthy and poor nations is now in reverse,” said UNDP Administrator Achim Steiner.
See also: Growing gulf between rich and poor countries ‘recipe for much darker future’, says UN (The Guardian)
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MSC South Africa Inaugurates MEDLOG Cold Store Facility, revolutionizing trade dynamics in the region (FreshPlaza)
The MSC Group operates various entities including Mediterranean Shipping Company, Mediterranean Shipping Depot, MSC Logistics (MEDLOG), MSC Technical and Shosholoza Operations. The breadth of MSC’s presence is reflected in its extensive network here, with six offices strategically located in Durban, Cape Town, East London, Johannesburg, Port Elizabeth and Pretoria.
MSC continues its journey in the region, opening a state-of-the-art 15,000-metre cold storage facility, also in Durban. The enormous cold store, part of MSC’s MEDLOG logistics division, promises to catalyse advancements in the handling of perishable goods in South Africa and beyond, and will open up the country’s trade landscape.
An inaugural event for the cold storage facility took place on 7 March, 2024, attended by MSC CEO, Soren Toft, with the presence of government officials, industry partners, clients and MSC personnel. Mr Toft gave a keynote address highlighting the impact of the new facility as part of South Africa’s bright economic trajectory.
Cabinet welcomes AfCFTA Protocol on Women and Youth in Trade (SAnews)
Cabinet says it welcomes the African Union Assembly’s adoption of key protocols and decisions affecting the African Continental Free Trade Area (AfCFTA). “These included the first-ever Protocol on Women and Youth in Trade, as well as Protocols on Investment and on Digital Trade,” said Minister in the Presidency Khumbudzo Ntshavheni. The Protocol on Women and Youth in Trade aims to promote sustainable and inclusive socioeconomic development, provide equal opportunity for women and youth in intra-Africa trade, and the structural transformation of African economies.
In addition, Ntshavheni said the Executive noted the outcome of the 13th Ministerial Conference of the World Trade Organisation (WTO). They also welcomed the acceptance by the WTO of South Africa’s instrument of ratification of the Fisheries Subsidies Agreement.
On the other hand, Ntshavheni said the Executive noted with concern a number of key development goals of African countries were not concluded after opposition from larger and developed economies. “These relate to policy space for industrialisation by developing countries, an agriculture agreement that provides greater access to developed country markets and opportunities for farmers in the global south, further measures to avoid over-fishing and steps to roll back unilateral and unjustified green protectionism measures such as the Carbon Border Adjustment Mechanism (CBAM) of the European Union,” the Minister said.
TNPA seeks to unlock land value through big leasing offer across seven ports (Engineering News)
South Africa’s State-owned Transnet National Ports Authority (TNPA) has released tenders for nearly 100 leasing opportunities across seven of its sea ports in line with a real estate strategy that aims to unlock the economic value of the land within the ports.
At 26 a piece, the Ports of Cape Town and Durban have the most leases on offer, followed by 24 at the Port of Richards Bay, 11 at the Port of Port Elizabeth, six for the Port of Saldanha, four at the Port of Mossel Bay and two for the Port of East London. The primary lease term ranges between a period of one to 15 years, and included in the request for proposals (RFP) documents are facilities and land that TNPA says could be repurposed for industrial and recreational purposes, along with vacant office buildings.
“While these leasing opportunities allow TNPA to fully optimise the use of land within the ports, they undoubtedly present an untapped opportunity for the business to unlock the future of South Africa’s trade economy whilst opening up the market for new entrants,” acting GM for commercial services Dr Dineo Mazibuko said in a statement.
South Africa and Namibia Set To Build $377million Transport Infrastructure Fund (Nairametrics)
Namibia and South Africa are set to launch transport infrastructure projects worth over $377 million over the next three years to address current rail and port inadequacies. The news was made public when the Namibian Executive Director for the Ministry of Finance and Public Enterprises, Titus Ndove told CNBC Africa that his office was preparing an initial R2bn for the project which aims to link the two nations and other parts of South Africa.
Speaking at the second annual Ninety-one Infrastructure Forum, Mr Ndove told delegates that it was vital South Africa resolve its logistics and port crisis by investing in Key infrastructure. “Most of our goods- about 70% of them coming from South Africa- move on the road and that has complications in the form of high maintenance costs for the roads. Sometimes we transport dangerous goods, which ideally, we want to get them off the road and carry on the rail.”
Zambia records positive ICT growth in 2023 (CGTN Africa)
Zambia’s information and communications technology (ICT) sector recorded positive growth last year, the country’s telecommunications regulator said Wednesday. The Zambia Information and Communications Technology Authority (ZICTA) said the various sub-sectors of ICT recorded positive growth in 2023 compared to 2022 due to increased investments in the sector.
Hanford Chaaba, ZICTA corporate communications manager, said in a statement that among the subsectors that recorded positive growth are active mobile cellular subscriptions, which increased to 21.1 million in 2023 from 19.8 million in 2022, and the total number of internet subscriptions, which increased to 12.6 million in 2023 from 11.1 million in 2022, reflecting a growth rate of 12.7 percent.
Trade between Tanzania and India is set to break its record (Business Insider Africa)
Mr. Manoj Verma, an official of the Indian High Commission in Tanzania announced during the Tanzania/India Business Forum during the weekend, as seen in the Tanzanian newspaper, The Citizen that trade between India and Tanzania is on track to surpass $7 billion. He also noted that Tanzania at this rate would become India’s largest trading partner in Africa.
“Our bilateral trade is set to cross $7 billion this year,” he said. “This has become possible due to favorable policies bolstering trade,” he added. The Indian official revealed that India has become the top destination for Tanzanian exports, thanks to the duty-free scheme initiated by India. The scheme ensures that over 90% of Tanzanian goods entering India are duty-free. “In fact as per Indian statistics, India is the number one destination for Tanzanian exports. It is undoubtedly the best trade partner for Tanzania,” Mr. Manoj Verma stated.
From White Gold to a Brighter Future - A Model for Sustainable Development in Burkina Faso (Islamic Development Bank)
Nestled in the heart of West Africa, Burkina Faso pulsates with the rhythm of cotton production. Lush fields stretching towards the horizon are meticulously tended by families whose lives have been interwoven with this precious crop, “white gold,” for generations.
Beyond its national pride, cotton is the lifeblood of countless rural communities, providing not just export earnings but a vital source of income and stability for millions. Recognizing this significance, the Burkina Faso government joined hands with the International Islamic Trade Finance Corporation (ITFC), the trade arm of the IsDB Group, to weave a remarkable story of partnership and progress.
While statistics boast of cotton as the nation’s second-highest source of export revenue, a deeper look reveals the even more impactful human story. A staggering 15-20% of the workforce relies on cotton, translating to millions depending on this crop for their very livelihood, considering many families have five or more members.
Despite its economic importance, the sector faced significant challenges. Delays in payments to farmers created financial insecurity and hindered investment in farms and families. Additionally, limited access to export markets restricted growth and development. The need for a comprehensive solution became apparent.
‘Gov’t does not intend to regulate prices of food commodities’ (The Point)
The minister for Trade, Industry, Regional Integration and Employment, Baboucarr Ousmaila Joof has told National Assembly Members (NAMs) that the government has no plans of regulating prices of rice, oil and sugar as such measures would only be counterproductive. “Price control is against the principle of a free market system and has not ensured price stability in the economy according to the evidence, but rather leads to hoarding and shortage of goods and services in economies,” he told deputies.
The Trade minister noted that The Gambia maintains a free market economy policy and the liberal trading environment where prices of goods and services are determined by market forces. However, he added the government is aware and conscious of their responsibility to ensure that consumers are not exploited through market failures including anti-competitive practices.
Nigerian Government Launch $2 Billion Initiative to Connect 774 Local Government Areas with Fiber Optic Network (Innovation Village)
The Federal Government revealed on Wednesday its plan to launch a $2 billion fund aimed at connecting all of Nigeria’s 774 local government areas through fiber optics. Spearheaded by the Ministry of Communications, Innovation, and Digital Economy, the initiative seeks to enhance internet connectivity nationwide.
According to Dr. Bosun Tijani, the Minister of aCommunications, Innovation, and Digital Economy, the project received pledges from various institutions, including a commitment of $200 million from the African Development Bank. Other donors include the World Bank, the African Export and Import Bank, and the United States Export and Import Bank.
The expansion of Nigeria’s broadband access aligns with the Ministry’s vision outlined in a white paper published in January 2024. The document emphasises the importance of deploying fiber optic cables across the country to achieve a 70 percent broadband penetration target by 2025.
Niger eyes April for first oil export with the completion of 110,000 b/d Benin pipeline (Business Insider Africa)
The initial shipment of crude oil was anticipated to be exported in January, as announced by the military leader of the country, Abdourahamane Tiani, via state television. The relaxation of sanctions on junta-led Niger by the Economic Community of West African States (ECOWAS) in February, seven months after a military coup, allowed China National Petroleum Corporation to complete construction of the 2,000 km pipeline and crude was flowing through the conduit last week, sources said.
Benin is part of the ECOWAS regional bloc which placed sanctions on Niger, preventing important equipment from crossing the border between the two countries. This led to delays in the completion of the Niger-Benin pipeline project, with some pump stations awaiting the arrival of equipment held up in Benin.
France proposes EU ban on exports of used clothes (The East African)
French Environment Ministry told Reuters on Thursday that Paris is proposing a European Union (EU) ban on exports of used clothes as governments look for new ways to tackle the worsening problem of textile waste.
UN trade data shows the EU exported 1.4 million metric tons of used textiles in 2022, more than twice as much as in 2000. The clothes can cause pollution in African countries where items that can’t be resold end up in dumps, the EU has said. In total, Europe produces 5.2 million tons of clothing and footwear waste every year, according to the European Commission. “Africa must no longer be the dustbin of fast-fashion,” France’s Environment Ministry said in a statement to Reuters.
EALA tasks regional authorities on cross-border trade (New Vision)
EALA Speaker, Joseph Ntakirutimana and his team observed a stakeholders’ engagement session to hear first-hand the challenges facing cross-border trade in the East African Community (EAC) region. By addressing the concerns stakeholders raise, the EALA seeks to strengthen regional trade relations, improve economic growth, and enhance the overall welfare of East African communities.
Inept African ports miss chance as Red Sea attacks reroute ships (Engineering News)
Africa’s inefficient and aging ports are hampering the continent’s chances of capitalizing on a surge in ship traffic that’s avoiding attacks by Houthi rebels through the Red Sea, logistics experts said.
The number of vessels sailing around the southern tip of Africa is up 85% from the first half of December, when the Iran-backed, Yemen-based terrorists intensified their attacks on ships, according to Clarksons Research. Some of the biggest beneficiaries are ports in South Africa, Madagascar, Mauritius, and Namibia, all of which have seen volumes rise, manufacturing and logistics company Fictiv said.
“However, most ports in Africa are inefficient and not in the best condition to be able to fully realize all the benefits,” said Vinny Licata, Fictiv’s head of logistics. “This is could be a real opportunity for Africa, but several ports were already congested due to inefficiencies. Investments are needed to enable them to compete.”
Currently, Africa accounts for about 6% of global maritime trade, despite approximately 90% of its imports and exports being transported by sea, according to Freight Right Global Logistics Chief Executive Officer and Founder Robert Khachatryan.
Burkina Faso, Mali and Niger hint at a new west African currency: what it’ll take for it to succeed (The Conversation)
On 11 February 2024, the head of Niger’s ruling military junta, General Abdourahmane Tiani, spoke of the possible creation of a common currency with Burkina Faso and Mali. “The currency is a first step toward breaking free from the legacy of colonisation,” he said on national TV, referring to the CFA franc inherited from French colonisation.
Thierno Thioune, an expert on monetary policies and unions between west African states, analyses the potential implications and feasibility of launching a new currency for the AES member countries.
First, macroeconomic and budgetary policies must be closely coordinated. Rigorous harmonisation of economic and budgetary policies between participating countries is imperative to guarantee the stability of the currency’s value and prevent trade imbalances. This will help maintain the confidence of economic players and promote regional growth.
Third, creating an integrated common market is vital. The unrestricted flow of goods, services, capital and labour is key to driving economic growth and enhancing regional cooperation. The current framework provided by the West African Economic and Monetary Union offers a significant advantage in this regard.
Create conducive environment for women under AfCFTA - GNCCI to government (Graphic)
The Ghana National Chamber of Commerce and Industry (GNCCI) has called on the government and other relevant organisations to create a conducive environment for women and youth businesses to thrive under the African Continental Free Trade Area (AfCFTA).
The National Treasurer of GNCCI, Dr Emelia Assiakwa, said women entrepreneurs and traders dominated the private sector, with approximately 44 per cent of micro, small, and medium enterprises (MSMEs) in Ghana being owned by them. In spite of this, she indicated that women still encountered many challenges such as trade facilities, inadequate capital and production resources.
African countries strategise to boost diamond trade (Tanzania Daily News)
The African Diamond Producers Association (ADPA) member states have deliberated on strategies to augment the worth of rough diamonds and collaborate in the mineral markets rather than depending solely on markets beyond Africa. The agenda has been considered during the Council of Ministers’ 9th African Diamond Producers Association (ADPA) ordinary meeting, which started on Tuesday and is scheduled to end today in Zimbabwe.
Opening the meeting, Mines and Mining Development Minister, Zhemu Soda, who chairs ADPA on behalf of Zimbabwe, said: “We have had challenges during our time, as you might be aware; that is, when the G7 countries intended to come up with their protocol on how diamonds are to be segregated and how they will be traded or marketed, which was opposed to what they had been obtaining previously.
The 9th African Diamond Producers Association (ADPA) ordinary meeting of the Council of Ministers has begun amid calls for member states to harmonise diamond policies and enhance the sharing of ideas to realise value from the natural resource.
GITEX Africa 2024 to unveil new digital economy blueprint (The Exchange)
This year, thousands of investors and entrepreneurs are converging in Marrakech, Morocco, for GITEX Africa, a signature tech and start-up expo that is poised to define the next phase of the continent’s digital economy. The show, now in its second edition, comes under the Patronage of His Majesty King Mohammed VI of the Kingdom of Morocco. GITEX Africa, which is scheduled from 29-31 May 2024, is organised under the authority of the Moroccan Ministry of Digital Transition and Administration Reform and hosted by the Digital Development Agency (ADD).
When Dr Ghita Mezzour, the Moroccan Minister of Digital Transition met with organisers in Morocco, he said: “The success of the 1st edition of GITEX Africa Morocco highlights our continent’s enthusiastic embrace of the digital revolution and Morocco’s commitment to strengthen South-South cooperation in the digital field, as well as its contribution to the international promotion of the African continent in accordance with the High Royal Vision of His Majesty King Mohammed VI, may God assist Him.”
“The global community is experiencing the growing energy, curiosity and demand for digital advancement from Africa which is outpacing that of matured developed continents,” explains Trixie LohMirmand, CEO of KAOUN International, organiser of GITEX Africa and World Future Health Africa. Trixie adds: “This sequel of GITEX Africa this year follows the upbeat trend of tech discovery we created last year in its inaugural edition.
South Africa’s VP wants urgency to grow Africa’s digital economy (ITWeb Africa)
South African Deputy President Paul Mashatile has urged policymakers to lay the groundwork for Africa’s digital economy. This, he said, entails enhancing digital infrastructure, digital skills, cybersecurity capabilities, and affordable and accessible data. Mashatile was a keynote speaker at the Global Entrepreneurship Congress Africa (GEC+Africa) in Cape Town, South Africa.
“We need to do more to implement the African Union’s Digital Transformation Agenda, adopted at its Summit of Heads of State in February 2019. We must ensure that by 2030, every individual, business, and government on the continent will be digitally enabled and ready to support a growing digital economy,” he said. According to Mashatile, “Africa is a continent overflowing with untapped potential, a hub of innovation and invention waiting to be re-awakened.”
Sixth Africa Climate Resilient Investment Summit (ACRIS VI) (UNECA)
The Sixth Africa Climate Resilient Investment Summit (ACRIS VI) ends today in Kigali Rwanda. ACRIS is a flagship event of the Africa Climate Resilient Investment Facility (AFRI-RES) – a joint initiative of the Economic Commission for Africa, the African Union Commission, and the World Bank with initial funding support from the Nordic Development Fund (NDF). AFRI-RES supports African countries and infrastructure project developers with tools and capacities for integrating climate resilience in investments in key sectors, including agriculture, energy, water, transport, cities and ecosystems.
ACRIS VI, under the theme of ‘Advancing Adaptation in Africa’, brought together stakeholders from governments, international organizations, the private sector, civil society, and academia to discuss strategies and opportunities for investing in climate-resilient infrastructure in key sector.
In her opening remarks, Dr Claudine Uwera, Minister of State for the Environment in the Ministry of Environment of Rwanda in her welcome and opening remarks stressed that “…to effectively address the negative impacts of climate change now and in the future, climate change adaptation strategies need to be integrated into wider national policies and planning processes – adaptation cannot stand in isolation, and climate resilience would not be achieved with only good policies and financial investments but also effective collaborations, knowledge and experience sharing and a strong collective commitment to action”.
Kenya: Global Conference Opens to Promote Food Safety (teleSUR)
On Tuesday, a five-day global conference to promote food safety around the world opened in the Kenyan capital of Nairobi. The 54th Session of the Codex Committee on Food Hygiene brought together more than 200 participants, including representatives of the World Health Organization (WHO) and the Food and Agriculture Organization of the United Nations (FAO), as well as senior government officials, to review ways to eliminate foodborne disease hazards.
In his opening remarks, Mithika Linturi, Kenya’s cabinet secretary for the Ministry of Agriculture and Livestock Development, said food safety is key to achieving several of the United Nations Sustainable Development Goals, including zero hunger, health and well-being, clean water and sanitation, and responsible production. “Without food safety, the Sustainable Development Goals will not be met,” Linturi said, calling for sustained investment in regulatory frameworks, laboratory capabilities and monitoring systems in order to enhance food safety.
Reduce Resource Use Growth While Growing Economy: UNEP Report (IISD)
The UN Environment Programme’s (UNEP) International Resource Panel (IRP) has published the second edition of its Global Resources Outlook. The report argues that for the 2030 Agenda for Sustainable Development to succeed, better resource management is essential, and provides recommendations to “bend the trend” on material extraction and use.
Themed, ‘Bend the Trend: Pathways to a Liveable Planet as Resource Use Spikes,’ Global Resources Outlook 2024 warns that material use has tripled over the last 50 years and continues to increase, driving the triple planetary crisis of climate change, biodiversity loss, and pollution. With resource use projected to go up 60% from 2020 levels by 2060, unsustainable levels of production and consumption could derail efforts to achieve much of the 2030 Agenda.
According to Global Resources Outlook 2024, high-income countries use six times more materials and generate ten times more climate impacts than low-income countries.
New initiative aims to curb the toxic impacts of agriculture (UN Environment)
The governments of Ecuador, India, Kenya, Laos, Philippines, Uruguay, and Vietnam have come together to launch a $379 million initiative to combat pollution from the use of pesticides and plastics in agriculture. Chemicals play a crucial role in farming, with nearly 4 billion tons of pesticides and 12 billion kg of agricultural plastics used every year.
Despite their benefits for food yields, these chemicals pose significant risks to human health and the environment. As many as 11,000 people die from the toxic effects of pesticides annually, and chemical residues can degrade ecosystems, diminishing soil health and farmers’ resilience to climate change. The opening burning of agricultural plastics also contributes to an air pollution crisis that causes one in nine deaths worldwide.
Uneven development progress is leaving the poorest behind, exacerbating inequality, and stoking political polarization on a global scale. The result is a dangerous gridlock that must be urgently tackled through collective action, according to a new report released today by the United Nations Development Programme (UNDP).
The 2023/24 Human Development Report (HDR), titled “Breaking the Gridlock: Reimagining cooperation in a polarized world”, reveals a troubling trend: the rebound in the global Human Development Index (HDI) – a summary measure reflecting a country’s Gross National Income (GNI) per capita, education, and life expectancy – has been partial, incomplete, and unequal.
DDG Ellard & fisheries subsidies negotiations chair share next steps at World Ocean Summit (WTO)
DDG Ellard said: “The WTO’s Fisheries Subsidies Agreement will materially improve the health and sustainability of the world’s fisheries by prohibiting the worst forms of subsidies. I call on WTO members to complete their domestic procedures, allowing the Agreement to take effect and benefit the lives of 260 million people around the globe who depend on fisheries for food, income and employment.”
Seventy-one WTO members have formally accepted the Agreement and a further 39 formal acceptances are needed for the Agreement to come into effect. The Agreement will enter into force upon acceptance of its legal instrument by two-thirds of the membership.
BRICS+ and the Global South Collaboration: Problems and Prospects (Modern Diplomacy)
In recent years, there has been a growing trend towards collaboration among countries in the Global South, with BRICS+ emerging as a key player in this movement. BRICS+, consisting of the original BRICS countries (Brazil, Russia, India, China, and South Africa) and now includes countries such as Argentina, Indonesia, Mexico, South Korea, and Turkey, has the potential to drive significant economic growth and development in the region. However, there are also challenges that must be addressed in order to fully realize the potential benefits of this collaboration.
One of the key problems facing BRICS+ and the Global South collaboration is the diversity of the countries involved. While this diversity can be a source of strength, it can also create challenges in terms of aligning priorities and interests. Differences in political systems, economic structures, and cultural norms can make it difficult for countries to work together effectively. Additionally, the members of BRICS+ vary significantly in terms of their level of economic development and political influence, which can further complicate efforts to create a cohesive alliance.
Another challenge facing BRICS+ is the unequal distribution of power within the group. Despite these challenges, there are also many reasons to be optimistic about the prospects for BRICS+ and the Global South collaboration. By pooling their resources and expertise, these countries have the potential to drive economic growth, promote innovation, and address shared challenges.
BRICS+: Membership Would Serve Nigeria Well - Prof. Ijoma (TV360 Nigeria)
BRICS building bloc in Africa (ALB)
Quick links
Unleashing the Power of Intra-African Trade: A Path to Prosperity for West Africa (CNBC Africa)
What to expect at the 2024 global inclusive growth summit 107242 (Devex)
Op-ed: Africa’s agency in a time of governance disillusionment (UNDP)
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Scorching heat raises SA food inflation risk (The Herald)
Dryer and hotter-than-usual weather across South Africa’s main summer crop growing regions is hurting the outlook for the key corn harvest and raising risks for higher food-price inflation, according to a farm-industry group. “The major risks to consumer food inflation in South Africa in 2024 will primarily be white maize products,” Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa said. “We see upside risks in maize prices and grain products in the consumer food inflation basket.”
The South African central bank is closely watching food prices as it assesses if it can safely start lowering interest rates later this year. It has repeatedly flagged the risk that El Niño-induced weather patterns may have on inflation.
“While farmers have managed to expand planting areas relative to the previous season, yields are expected to be poor and suffer from heat damage and a lack of rainfall,” Sihlobo said.
Kenya dairy imports from Uganda nearly triples to $210m (The East African)
Kenya’s dairy imports from Uganda nearly tripled in the year to June 2023, driven by increased production in the East African neighbour as well as a growth in demand from processors in Kenya. The dairy products include butter, cheese, ghee, ultra-heat-treated (UHT) milk, yoghurt, and milk powder.
Data from the Uganda Dairy Development Authority (DDA), which is the regulator of the dairy sub-sector, shows the country exported dairy worth Ush810.56 billion (Ksh29.2 billion - $210.83 million) to Kenya during the period. This translates to 83 percent of the total dairy products sold by Uganda during the period, cementing Kenya’s position as the country’s largest dairy market by far.
“Dairy exports have been increasing over time except for the financial year 2020/21 which showed a drop due to the Covid-19 pandemic, however, in the last financial year 2022/23 there was a sharp increase in the value of exports by about 158 percent,” said DDA. The jump in dairy imports from Uganda comes despite the restrictions that Kenya has put on the importation of some dairy products from its neighbour.
Rwanda, Tanzania commit to stronger trade, energy ties (The New Times)
Rwanda’s Minister of Foreign Affairs and International Cooperation, Vincent Biruta, and his Tanzanian counterpart, January Makamba, committed to boosting the two countries’ bilateral ties in various sectors including trade, energy and infrastructure.
The two ministers made the commitment in Kigali on Tuesday, March 12 during a press briefing that followed bilateral engagement between their delegations. Makamba, who is in Rwanda for a four-day working visit, said Tanzania would “continue to make it easier for Rwanda to use the port of Dar es Salam for its international trade.”
Mozambique lays down legislation to govern revenue from natural-gas exports (Engineering News)
Mozambique’s council of ministers approved a decree for the nation’s new sovereign wealth fund legislation, governing how one of the world’s poorest nations spends earnings from an estimated $91.7-billion in natural-gas exports in the coming decades.
Introducing the law was a key part of an economic program with the International Monetary Fund. It’s an important step in improving governance in the southeast African nation that got cut off from most international financing in 2016, when the government admitted it had borrowed more than $1-billion that it didn’t disclose to the IMF as required.
The law sees 40% of state revenues from liquefied natural-gas exports going to the fund for the first 15 years, with the rest allocated to the national budget. After that, the money will be split evenly between savings and annual spending.
Mozambique joined the elite club of LNG exporters in 2022, when a 3.4 million ton per year offshore platform sold its first shipment. Still, the nation’s much bigger onshore export projects, which companies including TotalEnergies SE and ExxonMobil Corp. plan, have suffered years-long delays as Islamic State-linked militants carried out a violent campaign in the surrounding province of Cabo Delgado.
Zim trade volume with Africa bulking (The Herald)
Zimbabwe is seeing more trade with African countries whom it had low or non-existent trade before the launch of the African Continental Free Trade Area (AfCFTA). This comes as shipments between Zimbabwe and African countries that hitherto did not have any trade agreements with Harare having started picking up on account of improved access to previously protected markets such as East and West Africa. South Africa is Zimbabwe’s biggest trading partner.
According to the Competition and Tariff Commission (CTC), trade with countries like Nigeria, Ghana, Morocco, and Mauritania is growing, which has been attributed to the AfCFTA.
Last year, the AfCFTA launched the Guided Trade Initiative where eight countries (mainly West and East African countries) are currently participating under Phase 1 of the initiative. Ms Phiri added that the AfCFTA had been instrumental in creating access to larger markets for Zimbabwean goods as well as cheaper sources of raw materials. The bulk of the imports are raw materials, which reduces costs for the local industry.
“We can get raw materials, which our industries will beneficiate before selling to the export market and fetch more foreign currency,” she said, emphasising other benefits such as ease of doing business, greater business and trade opportunities as well as increased economic growth. “Previously protected sectors will have their tariffs reduced, for example, textiles 40 percent . . . meaning goods that previously were not able to enter the domestic market can do so as long as they meet the Rules of Origin,” she informed.
Zambia To Spearhead Regional Connectivity With The 3rd Land-Linked Conference And Exhibition (Railways Africa)
In an ambitious move to enhance regional trade and mobility, the Zambian Ministry of Transport and Logistics in conjunction with the Zambia Development Agency and industry stakeholders is set to host the third iteration of the Land-linked Zambia (LLZ) Conference and Exhibition. This key event, slated for the 4th and 5th of April 2024 in Lusaka, aims to foster dialogue and collaboration among Southern African Development Community (SADC) member countries in the advent of the African Continental Free Trade Area Agreement (AfCFTA).
This annual event comes on the backdrop of the recently held Lobito Corridor Private Sector Investor Forum in Lusaka and will host other port authorities from the SADC region including Beira, Dar es Salaam, Nacala, Walvis Bay, and Durban.
With the theme “Connecting Zambia and SADC by Land to Facilitate Trade, Investments, and Ease of Movement of Goods and People,” LLZ 2024 seeks to explore and solidify transport corridors and business partnerships. These efforts are geared towards ensuring seamless movement of goods and services across borders, thereby reinforcing Zambia’s role as a strategic link in the SADC and COMESA corridor networks.
India Africa Trade Council and BDAC Ghana sign MOU to boost business cooperation (Asaase Radio)
BDAC Ghana Limited, an indigenous Ghanaian strategic consulting and advisory company has signed a memorandum of understanding (MOU) with the India Africa Trade Council (IATC) to strengthen business relations between the two entities and to develop reciprocal cooperation between India and Ghana through BDAC Ghana Limited.
The MOU was signed in Accra on Monday, 11 March 2024 at the end of a working visit of a 12-member IATC delegation to Ghana. The new IATC and BDAC partnership will, among other things, seek to identify avenues of business opportunities in various sectors of the Ghanaian economy and that of the rest of Africa, to facilitate the exploration of the opportunities by their (IATC and BDAC) respective clients.
Report to facilitate innovation exchange and trade between UK-Africa launched (The Business & Financial Times)
A new report to guide the formation and implementation of the proposed UK-Africa Innovation Trust Corridor (ITC) to facilitate the transparent, secure and demonstrable exchange of research and innovation outputs between the United Kingdom and its African Commonwealth nations has been launched in Accra. The report, titled ‘Research-Based Evidence to Support the Formation of the Proposed UK-Ghana Innovation Trust Corridor (ITC)’, was unveiled at the maiden Africa Research and Innovation Commercialization Summit (ARICS 2024), held in Accra.
The UK-Africa Innovation Trust Corridor establishes the infrastructure and protocols for innovation co-creation, innovation trade, protecting intellectual property rights, knowledge transfer, and shared operational standards. It will also foster a robust regime for research and innovation commercialisation within and across nations in the commonwealth, with the United Kingdom being the initial anchor region.
Another report launched concurrently with the ITC was the Trajectorial Discovery of Ghana’s Innovation and Value Chain Map (IMVCM), which explored and mapped Ghana’s innovation market and value chain.
The IMVCM, co-authored by Mr. Derrydean Dadzie and Dr. Gordon Adomdza, is a tool that helps ecosystem actors understand and improve the innovation landscape and market in Ghana. It outlines the journey from research intent to market through utilisation to disposal. The report recommended effective coordination among supporting entities to ensure the relevance and sustainability of research and innovation activities in Ghana. It also suggested that transforming research into marketable products would require addressing funding and resource constraints.
Nigeria reopens land, air borders with Niger, lifts other sanctions (Premium Times)
Nigeria’s President Bola Tinubu has ordered the lifting of all sanctions imposed on neighbouring Niger following the coup there. Mr Tinubu gave the order on Wednesday following a decision by ECOWAS leaders to lift all sanctions on Niger, Mali and Guinea, three West African countries currently led by putschists.
According to a statement by his spokesperson, Ajuri Ngelale, President Tinubu “directed the opening of Nigeria’s land and air borders with the Republic of Niger and the lifting of other sanctions against the country with immediate effect.” ECOWAS leaders last month met in Abuja where they resolved to lift all the sanctions imposed on the three countries and continue to engage in dialogue with the putschists.
Nigeria secures $1.3bn funding for rail link to Niger (The East African)
Nigeria has secured $1.3 billion in funding to complete a railway project connecting Kano, the largest city in the north, to Maradi in neighbouring Niger, the Transport Ministry said on Wednesday. The railway line will build on existing economic and social ties to boost trade and cultural cooperation between the two countries. Funding will come from a consortium led by the China Civil Engineering Construction Company (CCECC), which will contribute 85 percent of the total, the Transport Ministry said in a statement.
The remaining 15 percent will be covered by the Nigerian government alongside institutions like the Africa Export-Import Bank and African Development Bank (AfDB).”The securing of $1.3 billion signifies a monumental step forward in the completion of this critical infrastructure,” Transport Ministry spokesperson Jamilu Ja’afaru said.
Africa imports 70-80% of its drugs, losing $2.6tn yearly due to ill-health - AfDB chief (The North Africa Post)
Africa imports between 70 and 80% of its medicines, according to Akinwumi Adesina, the President of the African Development Bank (AfDB), who also warned that the continent suffers an annual loss of $2.6 trillion yearly due to lack of productivity caused by ill-health.
Speaking at a recent ceremony in Lagos where he was honored with the Obafemi Awolowo Prize for Leadership, the AfDB boss said that “Africa loses today, $2.6 trillion in lack of productivity, due to illnesses and diseases.” He also recounted how the Covid-19 pandemic exposed Africa’s weakness in the area of healthcare as the continent was caught unprepared, unprotected and left at the bottom of the ladder when it came to the distribution of vaccines. “What is not acceptable or sustainable is that today, Africa imports 70 to 80% of its medicines and produces only one per cent of its vaccines. The health security of 1.4 billion people in Africa must not be subjugated or subjected to the generosity of others.”
He then outlined several initiatives introduced by the AfDB to address Africa’s health challenges, which include a $10 billion facility to assist countries in managing the pandemic and a $3 billion program aimed at revitalizing Africa’s pharmaceutical industries. Another initiative is the recent establishment of the African Pharmaceutical Technology Foundation that aims to support access to proprietary technologies from global pharmaceutical companies. It is part of the effort by African health leaders to increase the manufacturing of pharmaceutical products on the continent, as all attempts to increase technology transfers haven’t gained much traction.
Related:
Regional parliament petitioned over inadequate healthcare in EAC (The New Times)
Mid-Term Review of the Multi-Sectoral Nutrition Action Plan (MNAP) 2018-2025 (AfDB)
One-Stop Border Post At Isebania-Sirare Border To Enhance EAC Integration (Kenya News Agency)
The European Union (EU) Ambassador, Mrs Henriette Geiger, has said that the EU-funded One- Stop- Border- Post at Isebania-Sirare towns along the Kenya-Tanzania Borders, will ease trade among the East Africa Community (EAC) Member States.
Geiger who paid a courtesy call to the Migori Governor, Ochilo Ayacko, Tuesday, accompanied by the Austria, Germany, Sweden and Poland Ambassadors to Kenya, encouraged the East Africa Community to emulate the European Union bloc, to strengthen the economic aspect of individual counties, to foster peace, unity and enhance free trade and movement of EAC people.
Geiger added that the free trade and economic partnership agreements between the European Union and Kenya, will enhance the trade through the duty-free access to goods and services, between Kenya and the EU.
SADC financial prospect hindered by strict visa and flying rules (Travel And Tour World)
Difficult flying rules, strict necessities of visa along with an absence of cross-industry teamwork are hindering the Southern African Development Community’s (SADC) financial prospect. This was the categorical note from aviation specialists at the latest Southern African Industrialization Forum (SAIF) which happened in Sandton.
Natalia Rosa, the head of SADC Business Council Tourism Alliance said that they can exchange dialogue regarding a free trade zone and provincial incorporation, but if people and goods can’t move capably, it’s all just meaningless assurances. She said that the present state of flying in SADC is a colossal own objective for their economies.
Panelists stressed on threats that airlines, stakeholders and tourists face within the region: Governing blockages, Visa limitations, and Restricted cooperation.
SADC launches Approved Natural Resources and Wildlife Frameworks (SADC)
In a groundbreaking workshop held on 13 March, 2024 in Johannesburg, South Africa, the Southern African Development Community (SADC) launched its approved Natural Resources and Wildlife Frameworks, setting the stage for collaborative implementation in the region.
The SADC Deputy Executive Secretary for Regional Integration, Ms. Angele Makombo N’tumba highlighted the significance of the frameworks aligned with the SADC vision, focusing on key pillars of the Regional Indicative Strategic Development Plan. High-level policies, including protocols on Wildlife Conservation and Law Enforcement, guide strategies for regional cooperation on sustainable utilisation of natural resources and effective protection of the environment.
Emphasizing regional integration as a necessity in conservation, the Deputy Executive Secretary called for a shared commitment to addressing challenges collectively in the region. Key strategies approved in June 2023, such as the Law Enforcement and Anti-Poaching (LEAP) Strategy, Wildlife Based Economy (WBE) Strategy Framework, Transfrontier Conservation Area (TFCA) Programme, Multilateral Environmental (MEA) Guidelines, SADC CITES Engagement Strategy, provide blueprints for reducing wildlife crime, intertwining economic prosperity with preservation, and advocating for sustainable resource use.
Eliminate red tape to make it easier for African entrepreneurs to do business (SAnews)
Deputy President Paul Mashatile has called for the elimination of red tape to facilitate cross-border trade for African entrepreneurs. “Countries on our continent typically perform poorly in various categories related to corporate performance and competitiveness due to an unfriendly environment, particularly in terms of intra-continental trade,” the Deputy President said on Wednesday.
This is the reason he believes that countries should take advantage of the African Continental Free Trade Area (AfCFTA) agreement, which seeks to eliminate barriers to trade in Africa.
The country’s second-in-command was delivering a keynote address at the Global Entrepreneurship Congress (GEC+ Africa) at the Cape Town International Convention Centre. “As policymakers, we have to create an enabling environment for our entrepreneurs,” Mashatile said.
South Africa, like the rest of the continent, according to the Deputy President, needs to be strategic in increasing its competitiveness in higher-productivity trade-able commodities and services, as well as in becoming ready for a digital and environmentally friendly future. “We must recognise that there is a link between the environment, economy, and agriculture. All economic activities either affect or are affected by natural and environmental resources.”
Amidst disruptions to traditional trade routes, unpredictable shipping times and soaring freight tariffs caused by the conflict in the Red Sea region, the opportunities the African Continental Free Trade Area (AfCFTA) agreement creates for the development of intra-Africa trade are becoming apparent, says Standard Bank. These opportunities would ease the pressure to import goods from the rest of the world, says Philip Myburgh, Executive Head of Trade and Africa-China, Business and Commercial Clients at the Standard Bank Group.
The 4th Global Conference of The World Banana Forum (WBF), hosted by the Food and Agriculture Organization of the United Nations (FAO), opened at FAO headquarters today to discuss an array of challenges faced by banana producers, including the impacts of the climate crisis, high energy and fertilizer costs, and the spread of the destructive Fusarium wilt Tropical Race 4 (TR4) disease.
In his opening remarks to the WBF, FAO Director-General QU Dongyu highlighted the importance of banana in several aspects: “Bananas are among the most produced, traded and consumed fruits globally, with more than 1000 varieties produced worldwide they provide vital nutrients to many populations.” Qu noted that the banana sector is particularly significant in some of the least developed and low-income food-deficit countries, where it contributes not only to household food security as a staple, but also to job creation and income generation as a cash crop. The Director-General also highlighted that he hoped that the conference would benefit smallholders the most as they continue to be a priority.
UN chief calls for global action to defend women’s rights amid disturbing trends (UN News)
Addressing the opening of the Commission on the Status of Women (CSW), the pivotal forum dedicated to promoting and safeguarding the rights of women and girls worldwide, Secretary-General António Guterres stressed the disproportionate impact of wars on women. “In conflict zones around the globe, women and girls are suffering most from wars waged by men,” he said, urging immediate ceasefires and humanitarian aid.
Secretary-General Guterres stressed that despite evidence that women’s full participation makes peacebuilding much more effective, the number of women in decision-making roles is falling. “The facts are clear: Women lead to peace,” he said, calling for more funding and new policies to boost women’s participation and investment in women peacebuilders.
The UN chief also emphasized a growing digital gender divide, noting the dominance of men in digital technologies, particularly in Artificial Intelligence. He warned that male-dominated algorithms could perpetuate inequalities into various aspects of life, noting that women’s needs, bodies and fundamental rights are often overlooked in the design of systems by male leaders and technologists.
More global news:
G20 GDP Growth - Fourth quarter of 2023, OECD
India finally embraces trade deals as companies look past China (The Economic Times)
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SA, Ghana explore ways to expand trade and investment (SAnews)
President Cyril Ramaphosa has emphasised the significance of expanding trade and investment between South Africa and Ghana, highlighting the need to explore avenues for enhancing cooperation beyond the existing areas covered by the Bi-National Commission (BNC). He was delivering opening remarks at the second session of the South Africa-Ghana BNC held at the Department of International Relations and Cooperation’s OR Tambo Building in Pretoria on Tuesday.
“In addition to the many areas of cooperation that the BNC covers, it is important that we explore how best both countries can increase trade and investment among ourselves... The purpose of the Business Forum that will take place on the margins of this BNC is to expand trade and investment between our two countries.
Botswana strengthens Rules of Origin competence through an Advanced Training Workshop (WCO)
The World Customs Organization (WCO) under the framework of the EU-WCO Rules of Origin Africa Programme, funded by the European Union (EU), held an Advanced Training workshop on Rules of Origin in Gaborone, Botswana, from 26 February to 1 March 2024. The workshop benefited the Botswana Unified Revenue Service (BURS) and aimed at enhancing the understanding of preferential rules of origin and regional trade agreements among customs officials from various units and border stations within the Customs Department.
Mr José Angel Marta Becerra, representing the EU Delegation to Botswana and SADC, emphasised the importance of capacity building in rules of origin, highlighting its role in ensuring the efficiency of Customs administrations.
Mrs. Jeanette Chanda Makgolo, Botswana Unified Revenue Commissioner General, noted the timeliness of the advanced rules of origin training, especially considering Botswana's preparations for implementing the AfCFTA trade agreement. She encouraged participants to approach the training with enthusiasm and to share the knowledge gained during the workshop with their colleagues.
The workshop covered critical aspects such as proper origin determination, operational and procedural issues, and the establishment of efficient origin implementation of rules of origin.
China leads global lithium race amid processing plant building boom in Zimbabwe (South China Morning Post)
Beijing currently controls the global lithium-ion battery industry, while it also dominates much of the processing of the mineral. To get the raw materials it needs, China has ramped up its procurement of lithium from Africa and elsewhere amid disquiet from Washington over Beijing’s grip on critical metal supply chains.
That grip got even tighter last year when African exports of lithium, which mostly go to China, rose sharply between August and November. That was when the companies commissioned processing plants for two products – mainly lithium concentrates spodumene and petalite – for export to China for further processing into lithium chemicals to make batteries and other electronics.
At present, Megginson said, the facilities in Zimbabwe are producing spodumene or petalite concentrate which, while not completely raw products, still require further refining. This process, also referred to as beneficiation, then turns the concentrate into chemicals that can be used in the production of lithium-ion batteries.
“For these projects, this further processing is currently happening entirely in China, though there is strong political momentum – not only in Zimbabwe – towards encouraging more of this refining capacity to take place in the country of extraction,” Megginson said. “This is to capture more of the added value of this step in the process domestically.”
Egypt-Kenya trade ties: CIB pledges support to traders (The Exchange Africa)
Lender Commercial International Bank (CIB) has identified partnerships as key drivers of growth that will power investments by bringing together businesses seeking to explore Egypt-Kenya trade opportunities. Kenya’s Prime Cabinet Secretary Musalia Mudavadi says the entry of CIB into Kenya’s market is a major win for Africa’s quest to enhance trade among its 54 member states.
Speaking at the Egypt-Kenya trade forum in Nairobi attended by roughly 40 Egyptian companies drawn from construction, transport, water, tourism, manufacturing and healthcare sectors, Mudavadi said Kenya was at the forefront of opening its market to African countries to boost intra-Africa trade.
“Over the past two years, we have played a great role in funding trade and investment opportunities for Egyptian companies doing business with Kenya. Since we now have a solid footprint in Kenya, we have provided a seamless platform for the businesses to unlock growth opportunities and we see that we can play an integral role in doing the same for Kenyan companies doing business with Egypt,” said Daphne Maina, the Acting CEO of CIB Kenya.
Tanzania Can Unlock Important Economic Benefits by Accelerating Health and Fertility Improvements (World Bank)
Tanzania has made important strides in reducing infant and child mortality, but the authorities must act quickly to capitalize on this progress and accelerate efforts to reduce fertility rates in order to unlock the full potential of a demographic dividend, according to a new World Bank report. The latest 20th Tanzania Economic Update explores the country’s progress towards attaining a demographic dividend, which refers to how improved health and reduced fertility can drive economic growth.
The report titled, ‘Overcoming Demographic Challenges while Embracing Opportunities’, shows that while Tanzania has seen a rapid drop in infant and child mortality over several decades, there has been only a minimal decline in fertility. As a result, the population growth rate remains high, at three percent. At this rate, the population will double in 23 years, increasing demand for social services outstripping the economy’s capacity to provide essential services, such as health and education, and create jobs.
On Tanzania’s economic outlook, the Update shows the economy has been resilient, growing by 5.2 percent in 2023, compared to 4.6 percent in 2022. The services sector remained the main driving force behind Tanzania’s overall economic growth, expanding by 7.3 percent, supported by buoyant economic activities in financial and insurance, transport and storage, and trade and repair subsectors. Despite recurrent droughts and floods, the agriculture sector grew at 3.4 percent in 2023.
Tanzanian Shippers Choose Mombasa Port Over Dar Inefficiencies (Business Day Africa)
The Port of Mombasa is capitalising on inefficiencies at the Port of Dar es Salaam as shipping companies opt for the expeditious and cost-effective route through Kenya. Last week, the MV Jolly Giada arrived at the Port of Mombasa, unloading 2,000 Tonne Equivalent Units (TEUs) at the harbour. Notably, 35 percent of this cargo, totaling 700 containers, constituted transit cargo destined for Dar es Salaam.
Dar es Salaam Port has grappled with a substantial backlog, imposing elevated costs on shippers through demurrage payments. The Kenya Ports Authority reported a surge in initial calls to the Port of Mombasa, attributing the growth to operational efficiency enhancements that have significantly reduced ship waiting times.
“Mombasa has observed a rise in the number of initial calls to the port, with the growth credited to operational efficiency improvements that have led to decreased ship waiting times,” said Kenya Ports Authority. Key metrics affirm the port’s increased competitiveness. The turnaround time for container vessels dropped from an average of three days in 2022 to two days in 2023. Furthermore, the average container dwell time decreased to 3.5 days from 3.9 days in 2022, marking a 10 percent improvement.
The Port of Mombasa is experiencing a notable influx of transit cargo, primarily from landlocked countries diverting to Kenya due to quicker turnaround times in clearance processes, exacerbated by inefficiencies at the Port of Dar es Salaam.
Tehran, Dodoma finalize draft of double taxation avoidance agreement (Tehran Times)
Iranian and Tanzanian tax officials have signed the draft of an agreement to eliminate double taxation on income taxes and prevent tax evasion with the presence of the ambassador of the Islamic Republic of Iran in Tanzania, IRNA reported on Tuesday. As reported, the draft was signed by Hossein Abdollahi, director general of the Legal Office and Tax Contracts of the Islamic Republic of Iran, and William M. Moja, the acting commissioner of the policy analysis department of the Ministry of Finance of Tanzania. According to Abdollahi, the two sides have so far held three rounds of negotiations to prepare the mentioned agreement for signing.
This agreement has various goals such as the elimination of double taxation in the two countries, the attraction of direct investment, further development of economic relations and expansion of tax cooperation between the two countries, exchange of information to promote transparency in the tax behavior of the parties, assistance in tax collection, and the provision of facilities, the official explained.
Nigeria’s trade with African countries yet to reach pre-COVID-19 levels despite AfCFTA (Nairametrics)
Nigeria’s trade with African countries has yet to reach pre-COVID-19 levels despite implementing the African Continental Free Trade Area (AfCFTA) agreement in 2021. Data from the latest foreign trade report of the National Bureau of Statistics (NBS) reveals a slow recovery in Nigeria’s trade with other African nations. Although there has been a progressive trend from the pandemic slump, the trade volumes have yet to eclipse the pre-COVID-19 zenith, casting a shadow on the effectiveness of the AfCFTA agreement in catalysing a robust trade recovery.
A breakdown analysis shows that in 2019, the import trade figure was N1.11 trillion, while exports soared at N3.92 trillion, cumulating a total trade of N5.03 trillion. This period represents a high-water mark for Nigerian trade within the continent, according to data presented by the NBS. However, the advent of 2020 and the ensuing global pandemic inflicted a pronounced disruption, manifested by a steep contraction in trade. Import values plummeted to N406.88 billion—a stark contrast to the previous year.
While less affected, exports still declined to N2.37 trillion, bringing the total trade down to N2.78 trillion, signalling a retreat in economic interactions and a disruption of supply chains across the continent.
Region’s private sector moot plan to grow intra-EAC trade (The Standard)
The Namanga border between Kenya and Tanzania is one of the key areas that a team from the East African Business Council (EABC) and the East African Community (EAC) plans to visit next month. The visit is aimed at determining the extent of the challenges affecting cross-border trade in the region. The visit, which will be done by a Technical Working Group already in place, forms part of the intense lobbying by EABC to remove barriers hindering cross-border trade.
EABC also wants designated checkpoints for goods originating from partner States as the lobby body seeks to boost intra-regional trade to 40 per cent. EABC is the apex umbrella body for the private sector in the EAC. The Technical Working Group formed between EABC and EAC is in Nairobi for two days to deliberate trade policy issues and proposals which should inform EABC Policy Advocacy Priorities for 2024/25.
COMESA Leads Regional Energy Regulatory Harmonization for Enhanced Access and Trade
Harmonization of regional energy regulatory frameworks is now a priority for the regional economic communities towards improving reliable and affordable energy access. Towards this goal, the Common Market for Eastern and Southern Africa (COMESA) is leading the implementation of a $1.5m African Development Bank (AfDB) funded Project on Regional Harmonization of Regulatory Frameworks and Tools for Improved Electricity Regulation in the COMESA region. The project aims to promote cross-border power trading by advancing intra-regional harmonization of electricity regulations in the region.
West Africa not producing enough palm oil to meet its needs – ECOWAS official (Daily Trust)
ECOWAS Commission’s Director of Customs, Union and Taxation, Salifou Tiemtore, has lamented that West African countries are not producing enough palm oil to meet members’ needs. He disclosed this while speaking to journalists on the sideline of the meeting on the free movement of palm oil under the ECOWAS preferential tariff regime – ECOWAS Trade Liberalization Scheme (ETLS), in Abuja on Tuesday.
“If you take a country like Nigeria, it has the capacity to double its production in terms of palm oil but we need to put in place some incentives so that through ECOWAS ETLS Nigeria can cover the Nigerian market and also go beyond the Nigerian market.” He said the region has the potential to meet the needs of member states if support were given to entrepreneurs to expand production and take advantage of the ECOWAS ETLS.
Regional meeting on ECOWAS draft Report on the State of the Environment Climate and perspectives (ECOWAS)
The Department of Economic Affairs and Agriculture, through the Directorate of Environment and Natural Resources, organized the regional meeting on the draft report on the State of the Environment, Climate and prospects for ECOWAS, from March 5 to 7, 2024 in Abuja, Nigeria . The meeting brought together representatives of Member States, representatives of regional and international institutions (UEMOA, IUCN, WASCAL), the ECOWAS Staff and two external consultants.
The main objective of the meeting was to examine the draft ECOWAS report on the state of the environment, climate and regional perspectives in order to collect observations and contributions from experts in order to substantially improve the said report. .
The draft ECOWAS Environment and Climate Report constitutes an important first attempt to provide Member States with relevant data and information on the environmental and climate status and trends of the region as well as political and operational recommendations. The draft report covers the following environmental thematic areas: i) Climate change and air quality; ii) Land; iii) Biodiversity and ecosystems; iv) Fresh waters; v) Marine and coastal environment; vi) Human settlements; vii) Waste.
African countries should put an end to resource backed loans (Nairametrics)
The African Development Bank’s President, Akinwunmi Adesina is advocating for an end to the practice of offering loans in return for access to Africa’s abundant oil reserves and vital minerals, which are essential for producing smartphones and electric car batteries. These transactions he said have facilitated China’s dominance in the mineral extraction sector in regions such as Congo, leading to financial instability in several African nations in an interview with AP.
He pointed out that the negotiations often favour the lenders, who wield more power and set the terms for financially constrained African countries. This imbalance, along with limited transparency and opportunities for corruption, paves the way for exploitation.
Regional workshop highlights the importance of efficient transit regimes for LLDCs (WCO)
From 26 to 29 February 2024 the World Customs Organization (WCO) delivered a Regional Workshop on transit interconnectivity and the use of regional transit guarantees for the West and Central Africa (WCA) region. The workshop was organized as a WCO pre-conference event to the Third United Nations Conference on Landlocked Developing Countries (LLDCs) that will be held from 18 to 21 June 2024 in Kigali, Rwanda and will adopt a renewed framework for international support to address the special needs of LLDCs.
The first day of the workshop was devoted to discussions on the principle of freedom of transit and the provisions of the relevant international and regional framework including the Agreement on Trade Facilitation of the World Trade Organization (WTO TFA), the Revised Kyoto Convention, the WCO Transit Guidelines, and the Agreement establishing the African Continental Free Trade Area (AfCFTA) among others. This was done based on presentations delivered by the WCO experts and the AfCFTA Secretariat.
Then participants delved into the topic of transit interconnectivity in West Africa. Seven Members of the sub-region (Benin, Burkina Faso, Ghana, Mali, Niger, Nigeria and Togo) presented the status of implementation of the Interconnected System for the Management of Goods in Transit widely known as SIGMAT from the French title Système Interconnecté pour la Gestion des Marchandises en Transit.
The main objective of these sessions was to showcase good practices implemented by Members of the West Africa sub-region, with a view to enabling other Members to benefit from the lessons learnt and to replicate those good practices throughout the region.
Mudavadi seeks European support for Africa’s trade challenges in Copenhagen (The Standard)
Prime Cabinet Secretary Musalia Mudavadi has advocated for a stronger Europe-Africa alliance to drive sustainable development. Speaking in Denmark on Monday, March 11, where he is representing President William Ruto at the High-Level Dialogue meeting in Copenhagen, Mudavadi stressed the need for both regions to unlock their full potential by promoting inclusive growth and fostering cross-sector collaboration.
“Let us remain steadfast in our dedication to cooperation and dialogue, translating our discussions into tangible actions that foster positive change in our societies. Together, we can build stronger partnerships, foster innovation, and create a more prosperous world for future generations,” he said.
‘There’s a $42 billion gender gap for financial inclusion in Africa’ — AUC (Modern Ghana)
The gender gap in access to financial services in Africa is costing the continent an estimated $42 billion each year, according to the African Union Commission (AUC). In an effort to boost women’s economic empowerment, the AUC is stepping up work to close this gap through new initiatives targeting women and youth.
Speaking at the launch of the AUC’s flagship “1 Million Next Level” youth-focused program, Prudence Ngwenya, Director of the AUC’s Women, Gender and Youth Directorate, stressed the need for greater investment in women’s economic capacity and inclusion. “One of the things that have been lacking in terms of investment is capacity and economic empowerment for women. So currently, the gender gap for financial inclusion on the continent is 42 billion US dollars,” Ngwenya said.
‘AfCFTA would be futile if airspace and landing are not free across Africa’ (GhanaWeb)
Professor Kofi Abotsi, the Dean of Law School at the University of Professional Studies (UPSA), has opined that the African Continental Free Trade Area (AfCFTA) would be inefficient and an illusion if airspace and landing are not made free across Africa.
In a tweet published on his official X page, Professor Abotsi reiterated the exorbitant rates of air travel in Ghana and its negative impact on businesses. He attributed the high cost of air travel in Africa to protectionism, taxes, and fuel costs. According to him, the current state of air travel in Africa would inhibit business travel across Africa. He called for free airspace and landing to be incorporated into AfCFTA.
“Air travel is senselessly expensive and difficult in Africa. And apparently, protectionism, taxes & fuel costs are driving that. The AfCFTA would be a mirage without a free airspace and landing across the continent,” Prof Abotsi’s tweet on the microblogging platform, X formerly known as Twitter read.
DP World’s global freight network grows with 18 new offices in sub-Saharan Africa (Bizcommunity)
Globally, DP World has opened 100 freight forwarding offices and created 1,000 jobs across six continents, as it looks to capitalise on an industry that is projected to reach a global market size of over $215bn by 2029. These offices already employ 1,000 people, adding to DP World’s 108,000-strong team – helping move more than 10% of global trade each year.
Beat Simon, group chief commercial officer of logistics at DP World, says: “Our expansion in freight forwarding complements our end-to-end supply chain solutions and capabilities. Our asset-appropriate approach is a step-change for the freight forwarding industry that puts customers in the driving seat with more visibility and control and gives them the confidence to trade in today’s global market.
“As we continue to grow our freight forwarding footprint, we are building a network that will cover more than 90% of global trade. We are focused on densifying our network as we build a best-in-class, strong and resilient global capability.”
Across sub-Saharan Africa, businesses are choosing to build resilience into their supply chains in the face of growing challenges such as fragmented markets and infrastructure constraints. To support these businesses, DP World is helping clients to overcome customs and trade barriers. By expanding its freight forwarding offering with a focus on air and ocean freight, DP World will deploy its ‘toolbox’ of owned global assets made up of ports, terminals, warehouses, trucks, rail and shipping services to increase control and resilience, whilst also working with complementary partners across the supply chain to boost efficiency.
‘Africa cannot achieve sustainable development without the youth’ — Mustapha Ussif (Modern Ghana)
Speaking at the opening ceremony of the Youth Pavilion organised by the African Union Commission’s Women, Gender and Youth Directorate in Accra on Monday, March 11, the Minister said young people must be at the centre of efforts to realize Africa’s development aspirations. Promotion of an all-inclusive and sustainable development for Africa and the African youth cannot be achieved without the involvement of our future leaders,” Minister Ussif told attendees, which included young leaders from across the continent.
He added that “To achieve the Africa we Want, all young persons seated here, should rise to the call through collaborative and shared efforts. All young people should be agents of change and take advantage of the numerous opportunities that exist in the continental and global space.”
How a shipping carbon tax could help Africa build climate resilient trade (African Arguments)
With Africa disproportionately affected by climate change and its impacts worsening other structural deficiencies, climate-resilient development is urgent. African countries are well aware of this and are committed to adapting to and mitigating climate change as demonstrated by their Nationally Determined Contributions (NDCs).
The difficulty is that implementing these national climate plans costs around $2.8 trillion between 2020 and 2030 (or about $250 billion a year). African governments can barely cover 10% of this total. At least 77% of the greenhouse gas (GHG) emissions reductions envisaged by African NDCs are conditional on international support. The result has been huge shortfalls in what is needed. In 2020, for instance, annual climate finance flows in Africa – from domestic and international sources – amounted to just 12% of the sum required.
It is in this context that a proposal to tax GHG emissions from the international shipping industry is advancing at the UN’s International Maritime Organization (IMO). The proposed levy comes as climate vulnerable countries call for more global action and has been supported by over 100 countries, from the Global South and North.
Africa is moving towards greater integration as Niamey meeting drives the momentum (AU)
Following the historical context of the African integration process and the progress of African leaders towards achieving a united, integrated and prosperous continent under the Abuja Treaty and Africa’s Agenda 2063 and the ultimate goal to transform its fifty-five (55) economies into a single economic and monetary union, with a common currency and free mobility of capital and labour, the African Union (AU) is convening in Niamey, Niger for the Extraordinary Summit on the African Continental Free Trade Area and the first Mid-Year Coordination meeting of the AU and the Regional Economic Communities (RECs), both purposed at moving the integration agenda forward.
In Niamey, the African Union will also hold an Extraordinary Summit on the African Continental Free Trade Area (AFCFTA) to celebrate the first Anniversary of the Signing of the AfCFTA and to formally launch the operational phase of the African Internal Market which officially entered into force on the 30th of May 2019. More on the AfCFTA event is available at AfCFTA Web Page
The Mid-Year Coordination meeting and the AFCFTA summit will be preceded by a two-day Executive Council meeting. The Executive Council will among other agenda items, consider and adopt the AU Budget for the year 2020. The budget preparation process, before adoption by the Executive Council, involves the oversight role of the Committee of Fifteen Ministers of Finance (F15) tasked with strengthening the financial and budgetary reforms within the Union.
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Infrastructure finance expert commends incoming amendments to PPP framework (Engineering News)
As government garners public comment on key proposed amendments to legislation governing public-private partnerships (PPPs), Infrastructure Finance Advisory Institute director Bongani Mankewu says the framework reform is the right course of action but needs to be free of “bureaucratic clumsiness”.
PPPs serve as channels for the importation of industrial components, and the government is left with the debt incurred in setting up the special purpose vehicle for the execution of, for example, mega infrastructure projects. Legislation, therefore, must be enacted to support the PPP framework and ensure localization and industrialisation happen.
Mankewu elaborates that, similarly, to ensure the flexibility of negotiations and the effectiveness of project execution, the PPP framework needs to be improved to remove any bureaucratic clumsiness. He believes mega infrastructure projects, which South Africa is in dire need of, need to be insulated from politics. To this end, infrastructure funds, combined with other instruments, offer the most effective insulation against political interference in executive large-scale infrastructure projects.
CEOs in Kenya bank on strong regional trade to raise profits (The East African)
The majority of Chief Executive Officers (CEOs) in Kenya view Tanzania and Uganda as key East African countries in which to grow their revenue, as they seek to make new acquisitions in the new year. A survey by consultancy firm, PricewaterhouseCoopers (PwC) revealed three in ten CEOs see Tanzania (34 per cent) and Uganda (34 per cent) as important markets for their goods and services, a move that aims to increase their margins and enhance intra-EAC trade.
Heightened trade and political tensions between the East African member states threatened to erode the gains of a free market and the dividends of a united bloc for a region expected to achieve the fastest growth across Africa this year.
EAC trade is dominated by agricultural commodities, namely coffee, tobacco, cotton, rice, maize, wheat and tea. Manufactured goods (cement, petroleum, textiles, sugar, confectionery, beer, salt fats and oils, steel and steel products, paper, plastics and pharmaceuticals) are also traded across the region.
IMF Executive Board Concludes 2023 Article IV Consultation with Angola (IMF)
Angola’s economic recovery in 2021/22 was nearly halted in 2023 by a double shock in the first half of the year, as the oil sector weakened, and the debt moratorium ended. Growth is estimated at 0.5 percent for 2023, with an estimated contraction in the oil sector of 6.1 percent and softened non-oil growth at 2.9 percent. Headline inflation increased significantly in 2023, to 20.0 percent y/y at end-December, driven by the depreciation of the kwanza and cuts in fuel subsidy in mid-2023.
Economic growth is projected to recover in the near-term, supported by improved oil production and the recovery in the non-oil sector. Inflation is expected to remain temporarily elevated in 2024 and to gradually decline thereafter, as the effects of the subsidy removal and the pass-through from nominal exchange rate depreciation diminish. Meanwhile, the primary fiscal balance is expected to improve and remain positive given the expected continuation of fuel subsidy reform; lower debt service starting in 2024; and the expected recovery in growth. Downside risks to the near-term outlook include a larger-than-expected decline in global oil prices and/or domestic oil production as well as a delayed implementation of the fuel subsidy reform. Upside risks would mainly stem from higher-than-expected oil prices.
Tinubu directs Nigerian Customs to return seized food items to owners (Premium Times Nigeria)
President Bola Tinubu has directed the Nigeria Customs Service (NCS) to return food items that were confiscated at border communities to owners on the condition that they would be sold in the Nigerian markets to boost food sufficiency. This was disclosed Saturday by the Comptroller General of the NCS, Adewale Adeniyi, during an interface with residents of border communities in Kongolam and Mai’Adua border stations.
Mr Adeniyi hinted that the president has decided to exercise his power “according to the feelings of magnanimity that he has for Nigeria”, contrary to what the law stipulates. “In doing so, he has directed that those food items that were going out of the country that have been seized in various border areas should be returned to the owners on the condition that those goods would be sold in the Nigerian markets,” the official said.
Nigeria’s export doors open to South Africa, Rwanda, Cameroon, and Kenya (Business Insider Africa)
A report seen in the Nigerian newspaper The Punch shows that by April, Nigeria would begin exporting products to some African markets under the Guided Trade Initiative of the African Continental Free Trade Area. The information was disclosed by the National Centre of AfCFTA. While trade with these countries prior to this initiative has been active, these trades have not been formal. The African Continental Free Trade Area is a free trade agreement created by 54 of the 55 African Union states, making it the world’s biggest free trade area by number of participant countries.
“We haven’t started trading in AfCFTA, we are duly going through the protocols. But recently the AfCFTA secretariat itself launched what they call the Guided Trade Initiative to get some countries to start trading outside their regional blocks,” the Executive Secretary, of the National Action Committee on AfCFTA, Olusegun Awolowo, stated.
The Council of Ministers of the Southern African Development Community (SADC) met on 10-11 March 2024 in Luanda, Republic of Angola and deliberated on programmes, policies and interventions aimed at accelerating deeper regional integration, peace and economic development. The Council of Ministers meeting was held under the 43rd SADC Summit Theme, “Human and Financial Capital: The Key Drivers for Sustainable Industrialisation in the SADC Region”.
H.E António reiterated the call made by His Excellency João Manuel Gonçalves Lourenço, President of the Republic of Angola, in his acceptance speech as the SADC Chairperson in August 2023, to expedite the approval and ratification of the agreement to facilitate operationalisation of the SADC Regional Development Fund (RDF), a self-financing and revolving financing mechanism intended to sustainably support the SADC regional development projects.
SADC economic future takes flight - Aviation leaders call for liberalisation of skies (Bizcommunity)
Onerous aviation regulations, stifling visa requirements, and a lack of cross-industry collaboration are hampering the Southern African Development Community’s (SADC) economic potential. This was the resounding message from aviation experts at the recent Southern African Industrialisation Forum (SAIF) held in Sandton. “We can talk about a free trade area and regional integration, but if people and goods can’t move efficiently, it’s all just empty promises,” asserted Natalia Rosa, SADC Business Council Tourism Alliance lead. “The current state of aviation in SADC is a massive goal for our economies.”
The World Trade Organisation (WTO) defines Intellectual Property Rights (IPR) as the rights given to persons over the creations of their minds. IPRs usually give the creator an exclusive right over the use of their product or innovation for a certain period. These can be copyrights and other rights related to copyright or industrial property.
With this in mind, Intellectual Property Rights (IPR) also affect activities along value chains. From pre-production to post-production, IPR determines different aspects of a value chain: Who gets access to the production process, what they produce, the production process, the location of the production, and distribution of the products.
Recognising the importance and implications of IPR on regional value chains, the SIPS programme incorporated IPR technical assistance and capacity building into activities. To date, SIPS has provided technical assistance on IPR to 25 regional private sector stakeholders in the leather value chain, ARV manufacturers, and COVID-19-relevant medical products value chains. The technical assistance ensures that stakeholders get appropriate advice on Intellectual Property Rights (IPR) considerations during product development processes.
Top sectors to watch in East African Community in 2024 (The East African)
East African economies are expected to grow by 5.1 percent in 2024 and 5.7 percent in 2025 buoyed by the service, tourism and transport sectors, according to a new report. The East African Economic Outlook 2024 released by RSM Eastern Africa Consulting Ltd, an audit, tax and consulting firm, shows that the agriculture, manufacturing, financial, and infrastructure sectors grow in Kenya, Tanzania, Rwanda and Uganda.
“The agriculture, forestry, and fishing sector registered 6.7 percent growth in Q3. The improved performance was attributed to favourable weather conditions that characterised the first three-quarters of 2023,” said Ashif Kassam, executive chairman of RSM Eastern Africa. “The service sector in both Kenya and Tanzania has been the driving force of economic growth in the region,” said John Bosco Kalisa, CEO, and the East African Business Council. “Services exports increased to 10.7 billion in 2021 from 8 billion in 2020. A significant increase by 34 percent. EAC services exports are dominated by the travel and other services categories representing more than two-thirds of total trade in services.”
The report which was presented during the EAC CEO Roundtable on Tuesday in Nairobi, says that on the economic outlook, the EAC economy has shown resilience amidst global challenges. Studies by the African Development Bank Report of 2024 point to the EAC as a region with some of the fastest growing economies. However, Kepsa is concerned with the frequent Stay of Application to the EAC Common External Tariff by EAC member states.
State, transporters lock horns over EAC vehicle load rule (The Star)
A row is brewing between transporters, shippers and the government over the implementation of the EAC vehicle load act, which limits the height of vehicles. The government, through the Kenya National Highways Authority (KeNHA) has been enforcing the East African Community Vehicle Load Control Act, 2016, meant for the region.
The Act puts the maximum overall height of vehicles at 4.3 metres, unless it is an abnormal load, which is allowed, subject to the authority granting and exemption permit which gives conditions on times of travel and routes to be followed, to protect public safety and road related infrastructure.
Heavy commercial vehicles hauling containers have been breaching the rule where most 40-foot containers being used are higher than the allowed limit. Most traders prefer to use the 40-foot high cube shipping containers as they give more room to stack goods unlike general shipping units, they offer a little extra height. The regional rule has, however, not been fully enforced as authorities allowed shipping lines and transporters to continue using high cube units.
ECOWAS single currency 2027 deadline unrealistic, says WAMZ boss (Peoples Gazette Nigeria)
The director-general of West African Monetary Zone (WAMZ), Olorunsola Olowofeso, says expectation for an ECOWAS single currency by 2027 is no longer realistic. He spoke against the backdrop of the recently held 48th meeting of the Committee of Governors of the Central Banks of the member-states of the WAMZ in Abuja. According to him, it is unlikely that any of the member-states will satisfy all four primary convergence criteria on a sustainable basis between 2024 and 2026.
“The quest for a single currency by WAMZ will take much longer to achieve as the convergence indicators have declined significantly. The assessment of member states’ performance reveals that, as of the end of June 2023, all member states failed to meet all the four primary convergence criteria. “The zone’s performance score declined to 29.2 per cent, compared to 41.7 per cent during the same period in 2022,” he said.
Sahel-ECOWAS impasse: Experts concerned for trade and security (GhanaWeb)
The stalemate between ECOWAS and the Sahelian countries of Burkina Faso, Mali, and Niger lingers on, causing further apprehension among citizens within and outside of the economic community. Recent efforts by ECOWAS demonstrate some sense of a desire to reconcile, but the question remains: has the bridge been burnt beyond repair or can it be rebuilt?
ECOWAS has lifted sanctions on travel and trade while urging the countries in question to “reconsider their decision to withdraw from ECOWAS, given the benefits that all ECOWAS Member States and their citizens enjoy for being part of the Community,” citing socio-economic, political, security and humanitarian consequences of parting ways. Returning ECOWAS to the fervor of its early years would not be easy; but, regional and security proponents believe it is a worthwhile endeavor.
‘Collaboration, integration critical to growing intra-Africa trade’ (The Guardian Nigeria)
The Chief Executive Officer (CEO), Achile Sime, SL Financial, and Managing Partner of Epena Law, Johanna Monthe, have said that collaboration and integration are critical to growing intra Africa trade, which the continent must be deliberate about.
Speaking at the Francophone Africa Business Summit (FABS) themed “Investing in Francophone Africa: Playbook and Opportunities,” they said eliminating barriers against trade and entrepreneurship are important steps that Africa must take to grow intra trade, stating that it is vital that African countries grow trade among themselves. The summit called for a review of obnoxious policies that inhibit trade, free movement of people within the continent to encourage SMEs, entrepreneurship and trade.
Women in cross-border trade violated (CAJ News Africa)
Women participating in informal cross-border trade (ICBT) within some Southern African countries are bearing the brunt of gender-based violence and economic exploitation. This has impeded women’s ability to exercise their human rights in the context of decent work.
Amnesty International has reported the violations, in a new report that accuses the governments of Malawi, Zambia and Zimbabwe for failing to protect these women. The report, “Cross-border is our livelihood, it is our job” details how women working in ICBT in these countries frequently face physical assault, sexual harassment and intimidation, which is often perpetrated by state officials, including border authorities. Women also face violence from non-state actors.
“The vulnerability of women in informal employment to diverse forms of abuse, combined with restricted access to justice, highlights a glaring gap in state protection,” said Tigere Chagutah, Amnesty International’s Director for East and Southern Africa.
CSW68: African Union Ministerial Consultation Meeting (AU)
The African Union Ministers in charge of Gender and Women’s Affairs will converge for a Consultation Meeting in the sidelines of the Sixty-Eighth session of the Commission on the Status of Women (CSW68), which will take place from 11 to 22 March 2024, at the United Nations Headquarters in New York, USA.
The WGYD of the AU Commission takes part in the annual Sessions of the United Nations Commission on the Status of Women (CSW) to ensure the integration of the Africa Common Position (CAP) on Gender Equality and Women’s Empowerment in global decision-making processes. The priority theme is: Accelerating the achievement of gender equality and the empowerment of all women and girls by addressing poverty and strengthening institutions and financing with a gender perspective.
ECOSOCC holds working session with PAP on the Free movement Protocol (AU)
The African Union Economic, Social and Cultural Council (ECOSOCC) held a joint working session with Pan African Parliament (PAP) on the Continental Free Movement Protocol. The working session brought together Members of Parliament from AU member states serving on the PAP Committee on Trade, Customs and Immigration.
The Protocol was adopted in 2018 by the AU Assembly of Heads of State and Government to be co-implemented alongside the African Continental Free Trade Area (AfCFTA). Despite its critical importance in operationalizing it, only four-member states have ratified the Protocol out of the 15 ratifications needed for it to go into force. ECOSOCC has launched the Parliamentary outreach campaign in partnership with PAP to advocate for the full ratification and domestication of this important Protocol.
Advancing Climate-Smart Agriculture Technologies in Africa (World Bank)
The World Bank Board of Directors today approved an additional $40 million in IDA grants to the Accelerating Impacts of CGIAR Climate Research for Africa project (AICCRA), a significant step towards advancing climate-smart agriculture (CSA) technologies and addressing critical gaps in climate resilience and food security in Ethiopia, Ghana, Kenya, Mali, Senegal, and Zambia.
The new financing, allocated to CGIAR centers through the International Center for Tropical Agriculture (CIAT), will facilitate the validation and dissemination of CSA technologies and methods in the beneficiary countries, which represent various agro-ecological zones vulnerable to the impacts of climate change. With this operation, farmers and livestock keepers will be equipped to predict and prepare for climate-related events more effectively, along with improved access to climate advisories directly connected to actionable response measures. This will enable communities to protect their livelihoods and the environment more successfully.
Irrigation in Africa can boost production by 50 percent (The Exchange Africa)
Irrigation in Africa has the potential to essentially double agricultural productivity, boosting output by up to 50 per cent. This optimistic evaluation is provided by the UN Food and Agriculture Organisation (FAO). However, even with this potential, FAO shares concerns that it is vastly underutilized, with agriculture in Africa remaining predominantly rain-fed. According to FAO data, the area under irrigation in Africa currently makes up just 6 percent of the total cultivated area. “While nearly 40 per cent of the world’s agricultural production comes from irrigated land, the figure for sub-Saharan Africa is only 10 per cent,” FAO laments. In Sub-Saharan Africa, irrigation is a key factor in achieving food security.
US committed to deepening trade ties, investing in SA economy (Daily Maverick)
We recognise a simple truth: economic growth in Africa is good for the global economy, including the American economy. That’s why the United States is committed to deepening trade ties, investing in the South African economy, and fostering people-to-people relationships among our citizens, businesses, and universities. By deepening our trade partnership, rebuilding our infrastructure, and securing reliable energy, South Africa and the United States can unlock the potential of both our citizens and economies.
At the heart of our relationship is the African Growth and Opportunity Act (Agoa), our mutually beneficial economic partnership. South Africa has become America’s largest trading partner in Africa, with over $20-billion of two-way trade of goods. More than 600 American businesses now operate in South Africa. Ford has invested more than $1-billion in producing cars in South Africa, manufacturing companies like General Electric are setting up shop, and financial firms like Visa have also grown their footprint.
Why U.S Govt is investing in the health and wealth of Africa’s livestock (The Independent Uganda)
Corporate Council on Africa Appoints Distinguished Business Leaders to its Board of Directors
Fractures in Global Trade Deepen as WTO Musters Only a Small Win (Bloomberg)
How sustainability and geopolitics shape foreign investment policies (UNCTAD)
UNCTAD’s latest Investment Policy Monitor, published on 29 February, uncovers how policies have evolved globally over the last two decades, when it comes to promoting and regulating outward foreign direct investment (OFDI). The report shows 79% of developed countries, where OFDI traditionally originated, have introduced promotion initiatives, which are increasingly focused on advancing the Sustainable Development Goals (SDGs).
Based on a review of legislation and promotional strategies in 194 economies, the report spotlights a shift “from liberalization to regulation” in countries’ approach to OFDI amid rising geopolitical tensions. Over the past decade, restrictions surged across developed and developing ones alike, in part driven by efforts to comply with anti-money laundering standards, as well as national security interests linked to sensitive economic sectors.
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Patel meets with EV manufacturers, investors during visit to China (Engineering News)
Trade, Industry and Competition Minister Ebrahim Patel and a high-level delegation recently completed a four-day working visit to Shanghai, Nanjing and Beijing, in China, during which they met with government officials, investors and a number of Chinese electric vehicle (EV) and battery manufacturers.
China is the world’s leading producer of EVs and batteries and is currently South Africa’s largest trading partner, with bilateral trade estimated at $34-billion in 2022.
The Minister was accompanied by senior staff of the Industrial Development Corporation and the Department of Trade, Industry and Competition (dtic). The visit provided Patel with an opportunity to present the South African automotive value proposition and government policy support to companies looking to invest into the South African automotive industry, particularly in EV manufacturing.
Eswatini, in collaboration with the Economic Commission for Africa (ECA) and the United Nations System has launched the National AfCFTA Implementation Strategy to boost the country’s trade and investment opportunities. It facilitates the identification of regional value chains to maximise value addition benefits and also identifies trade opportunities and constraints, including measures and capacities required to take full advantage of national, regional, and global markets for goods and services within the context of the AfCFTA.
UK Export Finance delegation heralds new trade opportunities for Benin and Togo (GOV.UK)
The CEO of the United Kingdom’s export credit agency has this week visited Togo and Benin, meeting government ministers in both countries to signal UKEF’s readiness to extend up to £4 billion of support for local projects. Last year, the UK’s exports to Togo were worth £287 million whilst its exports to Benin were worth £58 million. UKEF is working to enable British businesses of all sizes to access opportunities in these and in other Francophone West African countries.
Tim Reid, CEO of UK Export Finance, said: Benin and Togo have ambitious plans for infrastructure and development. UK Export Finance is already supporting exciting projects underway like Cotonou Ministerial City and the Sokode-Benin Road. My visit is giving me the opportunity to make it very clear that UK Export Finance is able to do even more, with billions of pounds available to help local buyers access British exports.
Turkey, Somalia announce agreement to explore for oil and gas (Hiiraan Online)
Somalia and Turkey have announced the signing of a deal to explore for oil and gas that further strengthens cooperation between the two countries, according to officials from both countries. Under the agreement signed Thursday in Turkey, the deal is to promote the development of bilateral, scientific, technical and commercial cooperation between Turkey and Somalia in developing the oil and gas of Somalia, according to Somali Petroleum and Mineral Resources Minister Abdirizak Mohamed.
Sudan economy on brink of collapse following nearly a year of war (The East African)
Largely ravaged productive sectors, stagnating exports, severely devalued national currency, and plummeting public revenues. The nearly one year of war in Sudan has pushed the country’s economy to the brink of paralysis. “According to official estimates, there has been a significant contraction of 40 percent in the gross domestic product (GDP),” a prominent feature of the Sudanese economy’s declined performance due to the ongoing war, Abdul-Khaliq Mahjoub, a Sudanese economic analyst, told Xinhua.
Sudan’s agricultural sector, representing more than a third of its GDP, has been severely affected by “the loss of financing and production inputs, including fertilisers, seeds, and fuel,” Abdul-Qadir Abdoun, a member of the Northern Sudan Farmers Union, told Xinhua.
Crossborder Investments Key to Enhancing Intra-Africa Trade (TechTrendsKE)
Prime Cabinet Secretary Musalia Mudavadi has said entry of Commercial International Bank (CIB) into Kenya’s market is a major win for Africa’s quest to enhance trade among its 54 member states. Speaking at the Kenya-Egypt Business Forum in Nairobi attended by 40 Egyptian companies among them construction, transport, water, tourism, manufacturing and healthcare, Mr Mudavadi said Kenya was at the forefront of opening its market to African countries as a boon to intra-Africa trade saying this will generate more jobs for locals as well as help retain more wealth within the country.
“Kenya appreciates the people and the government of Egypt for accepting to have this engagement on Kenya-Egypt cross-border trade on the sidelines of the Joint Commission for Cooperation(JCC). As a government, we will facilitate and give you the necessary support so that trade, commerce and investments can grow and benefit the people in our two countries,” he said.
Trade Pivotal To Nigeria, Africa’s Development (News Agency of Nigeria)
Lennart Oestergaard, Resident Representative Friedrich- Ebert-Stiftung Nigeria Foundation, says trade is pivotal to the development of Nigeria and Africa as a continent. Oestergaard said this at a media briefing on Wednesday in Abuja organised to summarise a Policy Focus Book “How Africa Trades”.
According to Oestergaard, trade is of high importance and should be prioritised if we must achieve the Sustainable Development Goals (SDGs) in Africa. He, therefore, urged the Federal Government to accord priority attention to trade so it could contribute to national development.
AfCFTA: Nigeria sets another date to commence official export to S’ Africa, Cameroon, others in April (Ripples Nigeria)
After serially missing crucial deadlines for joining other nations in trading under the African Continental Free Trade Area (AfCFTA), Nigeria is to begin the formal export of locally produced commodities to South Africa, Rwanda, Cameroon and Kenya from next month under the Guided Trade Initiative (GTI), the Nigerian National Action Committee (NAC) of AfCFTA announced on Thursday.
Again, Nigeria missed the August 2023 trading date for the launch of the second phase of GTI, passing over the opportunity to join countries like Rwanda, Cameroon, Egypt, Ghana, Kenya, Mauritius, Tanzania, and Tunisia, which have already commenced trading under the GTI.
Despite assurances from the NAC that Nigeria would participate in the second phase of GTI by October 2023, the nation once again failed to meet the target. NAC had cited the awaited official launch date from the AfCFTA Secretariat in Accra, Ghana, as the reason for the delay, further exacerbating concerns about Nigeria’s readiness for AfCFTA trading.
AfCFTA Secretariat, African shippers’ councils sign MoU (Graphic)
The Africa Continental Free Trade Area (AfCFTA) Secretariat has signed a memorandum of understanding (MoU) with the Union of African Shippers’ Councils (UASC) to help boost intra-African trade.
Under the agreement, the two parties are to collaborate to remove all bottlenecks affecting transit, trade facilitation, carriage of goods along the entire supply chain and eliminate non-tariff barriers. As a result, the Secretary-General of AfCFTA, Mr Wamkele Mene, signed the agreement on behalf of the secretariat while the President of UASC, Mr Patient Sayiba Tambwe, appended his signature for the union.
Leveraging the designation of the SADC Climate Service Centre as a WMO Regional Climate Centre (SADC)
According to a report released in 2018 by the United Nations Office for Disaster Risk Reduction (UNDRR), climate-related disasters accounted for 91% of all major disasters and 77% of direct economic losses. This shows a 9% increase in climate-related economic losses compared to the period from 1978 to 1998.
The changing climate has impacted various sectors, including water, agriculture, energy, peace and security, and infrastructure, which are fundamental to economic integration. This has led to an increase in food insecurity, poverty, and the loss of livelihoods and economic activities and has given rise to health challenges. Economically interconnected countries must collectively address climate-related risks to ensure shared resources’ resilience and maintain regional economies’ stability.
President of the African Development Bank Group Dr. Akinwumi Adesina has appealed to leaders in Nigeria and across Africa to make poverty history as he outlined a compelling case for welfarist policies and people-centred development.
“Given the high levels of poverty in Africa, and Nigeria, what is needed are welfarist policies that exponentially expand opportunities for all, reduce inequalities, improve the quality of life of people,” Adesina said as he received the prestigious Awolowo prize for leadership at a colourful ceremony in Lagos on Wednesday.
Adesina said a better Africa must start with transforming rural economies, “that is because some 70% of the population lives there. Rural poverty is extremely high. At the heart of transforming rural economies is agriculture, the main source of livelihoods.”
March 8 holds a special place in the calendar of the entire world. On this day, the world celebrates International Women’s Day (IWD) to commemorate and honor women’s accomplishments in all fields of human endeavor, from the social to the economic to the cultural and political. This year’s IWD is celebrated with the overarching theme of “Invest in Women: Accelerate Progress”. The theme emphasizes the importance of gender equality and women empowerment in all facets of life and its role as a critical ingredient for the creation of prosperous, stable and sustainable economies societies.
Gender equality is a priority globally through the 2030 Agenda of the UN (where Goal 5 simply puts its ambition as “achieve gender equality and the empowerment of women”) and continentally through Africa’s Agenda 2063 for ‘The Africa We Want’ and even the AU Constitutive Act (Article 3 of which commits the AU “to ensure the effective participation of women in decision-making, particularly in the political, economic and socio-cultural areas”). Despite this seemingly universal consensus, however, gender-based discrimination remains extant to this day.
But, Africa is leading the world on the issue of women economic empowerment particularly in relation to trade policy. As part the initiative to integrate the Continent through the African Continental Free Trade Area (AfCFTA), just last month the AU Assembly adopted a landmark legal instrument that aims to pave the way for women and youth to play a proportionate role in leading the Continent’s trade-led integration and shared prosperity. Known as the AfCFTA Protocol on Women and Youth in Trade, this decision represents a significant and unique step towards a more inclusive, equitable and prosperous Africa.
1 in every 10 women in the world lives in extreme poverty (UN Women)
We cannot continue to miss out on the gender-equality dividend. More than 100 million women and girls could be lifted out of poverty if governments prioritized education and family planning, fair and equal wages, and expanded social benefits. Almost 300 million jobs could be created by 2035 through investments in care services, such as provision of daycare and elderly care. And closing gender employment gaps could boost gross domestic product per capita by 20 per cent across all regions.
The areas needing investment are clear and understood. First and foremost there must be an investment in peace. Beyond this, the investments needed include: laws and policies that advance the rights of women and girls; transformation of social norms that pose barriers to gender equality; guaranteeing women’s access to land, property, health care, education, and decent work; and financing women’s groups networks at all levels.
Explainer: How can gender equality reduce poverty? (UN Women)
DDG Hill: Digital and services trade foster socio-economic inclusion of women (WTO)
Delivering a keynote speech on 7 March at a “Women in Trade” event organized by Trade Finance Global in London, Deputy Director-General Johanna Hill emphasized the powerful role digital trade and trade in services can play in fostering women’s socio-economic inclusion.
DDG Hill noted that while trade is known to have a positive impact on women's economic participation, the global trading system is undergoing significant changes. This is why, she said, "we need to ensure that [the future of trade] holds the promise of a better life, in particular for women." She focused her intervention on digital trade and trade in services, citing them as some of the main factors that will shape the future of trade.
On digital trade, DDG Hill gave the example of female farmers of coffee and cocoa, who can connect to new markets and access financial services thanks to blockchain-based technology. Cocoa and coffee farmers are struggling financially, given the prices received for the commodities they produce, she said. According to the Fairtrade Foundation, cocoa farmers earn on average just 6% of the final value of a chocolate bar. Thanks to digital technology, they can connect with buyers and cooperate with other farmers, ensuring a fair price for their products.
Trade and gender co-chairs discuss post-MC13 work, launch prize for gender equality in trade (WTO)
At a meeting of the Informal Working Group (IWG) on Trade and Gender on 6 March, the co-chairs highlighted gender outcomes at the 13th Ministerial Conference (MC13) in Abu Dhabi and outlined their vision for advancing work on trade and gender. Members stressed the IWG’s dedication to advancing gender inclusivity in trade. To mark International Women’s Day on 8 March, the co-chairs launched the International Prize for Gender Equality in Trade, with the aim of recognizing the most impactful gender-responsive trade policies implemented by WTO members and observers.
Southern Africa: Malawi, Zambia and Zimbabwe failing to protect the human rights of women working in informal, cross-border trade (Amnesty International)
The governments of Malawi, Zambia and Zimbabwe have failed to protect women participating in Informal Cross-Border Trade (ICBT) from gender-based violence and economic exploitation, which has impeded the women’s ability to exercise their human rights in the context of decent work, Amnesty International said today in a new report.
The report, ‘Cross-border is our livelihood, it is our job’- Decent work as a human right for women cross border traders in southern Africa, details how women working in ICBT in Malawi, Zambia and Zimbabwe frequently face physical assault, sexual harassment, and intimidation, which is often perpetrated by state officials, including border authorities. Women also face violence from non-state actors.
In 2018, the value of informal cross-border trade in the Southern Africa region reached USD $17.6 billion. Informal cross-border trade is predominantly conducted by women, with women comprising 60% to 90% of those engaged in this trade across subregions. This sector presents significant potential for poverty alleviation.
Govt leads calls to uplift women entrepreneurs (The Herald)
The Government has called for enhanced capacitation of budding women entrepreneurs as part of efforts to improve the quality of products they produce in order to benefit from the vast export opportunities under the African Continental Free Trade Area (AfCFTA). Micro, Small to medium enterprises (SMEs) in Zimbabwe employ 76 percent of the working population, with 57 percent of these being women, according to a 2021 MSME survey.
A recent study by United Nations Women identified opportunities for women entrepreneurs in the AfCFTA. The study focused on three areas of interest: women in informal cross-border trade (WICBT), gender and value chain analysis, and affirmative action/preferential public procurement.
However, while the regional trading block presents unlimited export opportunities for MSMEs, especially one run by women, it is also a highly competitive market where the quality of products and services plays a critical role in ensuring small businesses successfully tap into the market.
Women in African business take two steps forward, one step back (African Business)
Women in Africa are leading the way when it comes to establishing their own businesses. A quarter of all businesses on the continent are started or run by women, in contrast to Europe where the share of entrepreneurial activity by women is a lowly 5.7%.
“Africa does stand out in the global landscape when it comes to entrepreneurship,” according to Toni Weis, a financial specialist at the World Bank’s Gender Innovation Lab. “Of all the regions, Africa is the one that has gender parity in self-employment and entrepreneurship, which is really quite remarkable especially if you look at a neighbouring region like the Middle East and North Africa.”
Women’s strong participation in business in Africa is linked to a number of factors, including survival – formal job prospects can be limited, necessitating innovation and self-employment by women. Conversely, it is also likely that strong economic growth in many countries, widespread urbanisation and changing laws around women’s rights across the continent have enabled much greater female participation in businesses in recent years. There are also now far more initiatives that encourage women’s participation, including specific calls for female applicants for roles.
Despite this considerable progress, a number of structural, social and infrastructure challenges persist. Whereas more and more women are participating in the private sector, this participation is not always sustained higher up the career ladder.
5 ways to accelerate women’s economic empowerment (UN News)
“This year’s theme – invest in women – reminds us that ending the patriarchy requires money on the table,” UN Secretary-General António Guterres said in a statement for the International Day.
“This all depends on unlocking finance for sustainable development so that countries have funds available to invest in women and girls,” he said, calling for action to support programmes to end violence against women and to drive women’s inclusion and leadership in economies, digital technologies, peacebuilding and climate action. While increasing women’s share of assets and finance is vital for their economic empowerment, equally important is building institutions that promote public investment in social goods and sustainable development.
See UN Secretary-General’s message on International Women’s Day (UN Women)
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UN telecomms agency chief: One third of humanity still offline (UN News)
In Least Developed Countries, only 30 per cent of women have access to the internet, Secretary-General Bogdan-Martin said. “I’ve seen women who can’t afford a smartphone, women in countries where entry-level handsets can exceed 70 per cent of the average household’s monthly income,” she said reflecting on the time spent in office, on the eve of the International Women’s Day. Women still account for a disproportionate share of those offline, outnumbering men by some 20 per cent.
Speaking about generative artificial intelligence (AI) – an area where ITU holds a leading role among the UN-family agencies – the Secretary-General stressed there are clear pros and cons. Citing AI’s potential to mitigate greenhouse gas emissions by 10 per cent and advance progress across the 17 UN Sustainable Development Goals, she cautioned against the threat AI poses, including cyberattacks and erosion of trust caused by dis and misinformation.
Goods barometer continues to signal weak upward momentum in trade (WTO)
The current reading of 100.6 for the barometer index is above the quarterly trade volume index but only slightly above the baseline value of 100 for both indices. This suggests that merchandise trade should continue to recover gradually in the early months of 2024, but any gains could be easily derailed by regional conflicts and geopolitical tensions.
The volume of world merchandise trade fell 0.4% in the third quarter of 2023 compared to the previous quarter and was down 2.5% compared to the same period in 2022.
The steep year-on-year drop in the third quarter was mostly due to relatively strong growth in the first three quarters of 2022. Goods trade from January to October in 2023 has been mostly flat, with volume in the third quarter nearly unchanged since the start of the year and up just 3.2% over two years. These developments are more negative than the WTO’s most recent forecast of 5 October 2023, which predicted 0.8% growth in merchandise trade in 2023.
Critical minerals: Harnessing data key to unlocking hidden treasures (UNCTAD)
The global quest for a cleaner energy system has escalated the demand for critical energy transition minerals such as lithium, cobalt, nickel and copper. These minerals play a crucial role in renewable energy technologies such as solar photovoltaic cells, wind energy, battery storage and electric vehicles.
For example, the demand for copper in clean energy systems is forecast to increase from 23% of total demand across all applications to over 42% by 2050, according to UNCTAD calculations based on data from the International Energy Agency. But if copper’s production continues at its current rate, the burgeoning demand won’t be met, creating a significant gap that needs to be addressed to keep global warming to no more than 1.5°C, in line with the Paris Agreement on climate change.
To meet the increasing demand, countries need to explore new resources abundant in high-grade mineral ores and attract investments into the sector, among other essential measures. They can use technology and data to identify resources that traditional geologists might overlook and assist miners in determining optimal drilling locations.
New UNCTAD-WHO analysis reveals trends in processed foods trade (UNCTAD)
Global trade in food grew by 350% from 2000 to 2021, reaching a total value of $1 689 billion. Food now represents about 8% of total merchandise trade globally, compared to 6% in 2000. With as many as 783 million people facing hunger worldwide in 2022, trade can help improve access to food.
“But not all foods that are imported and exported are equally good for us, and the composition of food trade can have important health impacts,” says Anu Peltola, director of UNCTAD’s statistics service.
A study by UNCTAD and the World Health Organization (WHO) presents a new framework for analysing the global food trade. The global trade matrix of processed food released on 7 March shows trends for food imports and exports at different levels of processing and for different country groups. The trends can help shed light on important economic, social and health dimensions in a country or region.
Red Sea Attacks Disrupt Global Trade (IMF)
In the past few months, global trade has been held back by disruptions at two critical shipping routes. Attacks on vessels in the Red Sea area reduced traffic through the Suez Canal, the shortest maritime route between Asia and Europe, through which about 15 percent of global maritime trade volume normally passes. Instead, several shipping companies diverted their ships around the Cape of Good Hope. This increased delivery times by 10 days or more on average, hurting companies with limited inventories.
On the other side of the world, a severe drought at the Panama Canal has forced authorities to impose restrictions that have substantially reduced daily ship crossings since last October, slowing down maritime trade through another key chokepoint that usually accounts for about 5 percent of global maritime trade.
Trade policy vital for sustainability despite questions (Allen Overy)
Trade policy is increasingly recognised as a key route to achieving global sustainability goals. Commitments to reach Net Zero require vast amounts of international investment to build green infrastructure and adapt existing systems. Free trade agreements can remove barriers to trade in sustainable products and technologies, while subsidies and tariffs can be used to incentivise the transition.
However, the legality of some of these measures is hotly debated, including whether they are compliant with international law. Trade and sustainability were also key topics of discussion at COP28, including the possibility of a more global approach to sustainable trade policy.
Closing remarks by Minister for Foreign Trade and Development Ville Tavio at the LDC Future Forum in Helsinki (Valtioneuvosto)
The topic of the Forum has been the role of innovations in transforming the economy and society, for innovations can truly accelerate development. Scaling up is much needed to reach the sustainable development goals.
As we have discussed, digitalization is leaping forward, but we also see digital gaps still being wide. We need to pay special attention to digital gaps which prevent women and girls from accessing online data. The digital economy holds many promises, but apart from the private sector we also need to enable institutions, citizens and civil society organizations to fully benefit from it. I hope that the Forum has given inspiring ideas on how to tackle these challenges.
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Innovative businesses gain more access to global markets, study finds (SAnews)
Innovation-active South African businesses have more skilled labour and greater access to the global markets compared to non-innovation enterprises, according to results from the latest round of the South African Business Innovation Survey (BIS). The Human Sciences Research Council (HSRC) survey revealed that during the 2019 to 2021 period, 62% of South African businesses took scientific, technological, organisational, financial, or commercial steps aimed at realising an innovation.
According to the statement, training emerged as the most common innovation activity for 47% of innovation-active businesses, followed by software and database activities (29%), and marketing initiatives (25%). Of the employees involved in these innovation activities, only 38 in 100 workers were female and 62 in 100 were African.
“In South Africa, where we face multiple challenges, a more innovative business sector can contribute to productivity and business resilience as well as job creation, improved working conditions and quality of life,” said the HSRC’s Dr Amy Kahn, who led the BIS.
South Africa’s current account deficit widens sharply in fourth quarter (Engineering News)
South Africa’s current account deficit widened sharply in the fourth quarter of 2023 to 2.3% of gross domestic product (GDP) from a revised 0.5% of GDP in the third quarter, central bank data showed on Thursday. The trade surplus narrowed to R88.1-billion in the fourth quarter from R181.1-billion in the third quarter, while the annual trade surplus more than halved in 2023, to 1.5% of GDP from 3.4% in 2022.
Kenya takes funding crown as African tech investment dips (CGTN Africa)
Kenya emerged as the surprise leader in African startup funding despite a global slowdown in tech investment, according to Disrupt Africa’s latest report. While total investment dropped by nearly 28 percent in 2023 compared to 2022, Kenya attracted a record-breaking 674 million U.S. dollars, surpassing the previous frontrunner, Nigeria. The report, titled “The African Tech Startups Funding Report 2023,” highlights a period of recalibration for the continent’s tech ecosystem.
Kenya’s rise to the top is attributed in part to significant funding rounds secured by two of its energy companies. This shift suggests a growing focus on sectors beyond the traditionally dominant fintech space. While the “big four” – Nigeria, Egypt, South Africa, and Kenya – continued to attract the lion’s share of funding (90.4 percent), their dominance appears to be waning slightly compared to 2022 (80.8 percent).
Amidst disruptions to traditional trade routes, unpredictable shipping times and soaring freight tariffs caused by the conflict in the Red Sea region, the opportunities the African Continental Free Trade Area (AfCFTA) agreement creates for the development of intra-Africa trade are becoming apparent, says Standard Bank.
These opportunities would ease the pressure to import goods from the rest of the world, says Philip Myburgh, Executive Head of Trade and Africa-China, Business and Commercial Clients at the Standard Bank Group (parent company of Stanbic Bank Ghana).
“Besides reducing the need to import goods from outside of Africa, the preferential tariff rates promote Africa’s growth. AfCFTA has the potential to boost South Africa’s economy and create new jobs by increasing economic participation.” “Last month, South Africa exported its first shipment of goods to Ghana under the AfCFTA agreement. The goods shipped were forged grinding balls and high-chrome grinding media products supplied to the platinum, gold, ferrochrome, base metal, power generation and cement industries.” However, several other markets remain to be explored, says Myburgh.
The inception of the Southern African Community Development (SADC) Atlantic Project took place on 20thFebruary 2024, in the Republic of Angola, in Luanda.The primary goal of the project is to support the coordinated efforts of Angola, Namibia, and South Africa to mitigate illegal, unreported, and unregulated (IUU) fishing and organised crime in the fisheries industry. This initiative is one of many carried out by the SADC Regional Monitoring Control and Surveillance Coordination Centre (MCSCC).
Fisheries in the SADC region yield substantial economic benefits, including fish production of about 3,7 million tons of fish, with exports of fish and fishery products at about US$ 2.3 billion, accounting for 31% of Africa’s total exports of fish and fishery products in 2022. They also provide direct and indirect employment to about 3.5 million SADC citizens and contribute to the region’s food and nutrition security.
East African economy to expand by 5.1 percent (The East African)
The East African economy is projected to grow by 5.1 percent this year with Kenya, Rwanda and Tanzania leading the region’s economic momentum. A report by audit, tax and consulting firm RSM (Eastern Africa) Consulting Ltd, dubbed “The East African Economic Outlook 2024” and presented during the EAC CEO Roundtable on Tuesday in Nairobi, reveals that the region will continue to lead Africa’s growth pace, expanding by 5.7 percent in 2025.
“Kenya was among the four EAC partner states in the top performing economies in Africa in 2023. It is also envisaged that EAC partner states will have a strong economic rebound, with an expectation to attain a GDP growth rate ranging from 4.1 percent to 7.2 percent,” said Annette Mutaawe Ssemuwemba, EAC Deputy Secretary-General for Customs, Trade, and Monetary Affairs. Global shocks, however, continue to threaten regional economies.
Illicit trade, counterfeit and substandard goods, high cost of electricity and transport, and currency depreciation are among the issues that have led to the high cost of doing business in the region.
The Private Sector Directorate of the Economic Community of West African States (ECOWAS) played host to Delegates from member states, including delegates from the African Union Commission (AU) and UEMOU to the 1st Steering Committee Meeting on regional Small Business Coalition in Abuja from 4th to 6th of March, 2024. This meeting was aimed at promoting and boosting small and medium enterprises in the region.
It was agreed that the coalition is important and timely, as it presents an opportunity to create a platform for dialogue, cooperation, and innovation among our small and medium enterprises and industries, which are the backbone of our economies and the drivers of our development. We can share best practices, exchange information, access new markets, enhance our competitiveness, and create more jobs and wealth for our people by joining forces.
3rd EAC Science, Technology and Innovation Conference opens in Nairobi (EAC)
The 3rd East African Community Science, Technology and Innovation (STI) Conference opened in Nairobi, Kenya on Wednesday with an appeal to all stakeholders to work together to enable the Community to tap into and benefit from STI opportunities and accelerate their diffusion.
“Today, East Africa’s innovation level is insufficient to reach ambitious levels of inclusive growth and development due to prevailing technological and innovation constraints, which include financing, and information asymmetries that need to be addressed to harness STI full potential fully,” said Ms. Hendrina C. Doroba, the Division Manager in charge of Education and Skills Development at the African Development Bank (AfDB) East Africa Regional Office, adding that the situation had been worsened by the slow global recovery from the Covid-19 pandemic and the ongoing Russian-Ukraine war.
“A critical pathway in responding to these challenges and ensuring that STI works for East Africa is the urgent need to train the next generation of scientists and innovators, who should take the lead in driving the region’s development agenda,” she added.
Related: Digital space incomes grow for Kenyan youth (The East African)
Africa risks missing out on AI revolution benefits (The East African)
African economies risk being left behind in the artificial intelligence (AI) shift that is changing the way companies do business, with the continent’s low capacity for virtual storage and increasingly outdated mobile technology a cause for concern. In Africa, according to the African Telecommunications Union (ATU), investments are still going towards closing a connectivity gap—bringing more people into the network especially in rural areas.
“The key then is for our governments to embrace the fact that we are now in a data driven economy, where access and control of information can help in tooling AI to do what we need and want it to do,” said ATU Secretary General John Omo. Even as countries bring in supporting legislation however, the EAC region and sub-Saharan Africa as a whole will still need to address the internet coverage and usage gaps which blunt the impact of new technology on the economy.
Global mobile network association GSMA, in its 2023 State of Mobile Internet Connectivity Report, says that just 25 percent of the total population in sub-Saharan Africa—or 290 million people—has mobile internet coverage, against a global average of 51 percent.
Partner2Connect: Mobile industry answers call for connectivity (ITU Hub)
Fifth generation (5G) mobile telecommunication services could contribute almost USD 1 trillion to the global economy by 2030, becoming a vital component of education, health care, energy distribution, and more. Mobile services, meanwhile, are intertwined with the booming space economy, itself set to grow to USD 1 trillion by the end of the decade.
“Universal, meaningful connectivity is within our grasp,” Bogdan-Martin said. “These commitments will help provide accessible and affordable network connectivity to millions of people in need.” Read the press release Associated infrastructure deployments and upgrades “will have a long-term impact on markets and economies across the globe,” she added.
ITU – the UN digital agency – has called on governments and industry to work together to connect every corner of the globe. Pledges mobilized through Partner2Connect in the last two years now exceed USD 46 billion in value. The ITU-led connectivity campaign aims to reach USD 100 billion by 2026. The latest pledges from mobile operators bring it close to halfway there.
Earth’s ‘life support system’ is being destroyed by global business paradigm, UN expert warns (UN News)
In a hard-hitting report to the Human Rights Council, Special Rapporteur David Boyd underscored that current business practices, particularly large corporations, pose a severe threat to the planet’s ecological integrity. Mr. Boyd emphasized the “colossal impacts” on natural resources, which are being consumed six times faster than the planet can sustain.
“Led by the ultrarich, with their private jets, yachts, massive mansions, space travel and hyperconsumptive lifestyles, humanity is exceeding Earth’s carrying capacity,” the report stated in stark language, singling out the ecological footprint of the world’s most developed nations.
Empowering vulnerable women: African Development Bank financing bolsters economic inclusion in Togo (ZAWYA)
Some 45 kilometres from Lomé, in the village of Aného, a transformative initiative is reshaping the lives of vulnerable women like Adjoa Agbomassi. Following her successful treatment from obstetrical fistula, Adjoa now stands proudly by her vegetable stalls, a testament to the success of the Project to Support the Financial Inclusion of Vulnerable Women in Togo (PAIFFV).
“Before, I struggled to sustain my business. Now, with the project’s support, I’ve expanded my operations, attracting more customers and securing a stable income, thanks to the loan from the Project to Support the Financial Inclusion of Vulnerable Women,” says Adjoa, reflecting on her journey to financial independence.
With over $990,248 (around 600 million CFA francs) disbursed to women entrepreneurs, the project has facilitated the creation of 8,072 micro- and small businesses, boasting an average profitability of 26.5 percent. Each enterprise has also helped to generate 1.2 jobs, fostering economic growth and stability within local communities.
See also: Barriers still exist for women in political participation (CGTN Africa)
The climate crisis is unjust for rural women: FAO gender expert (FAO)
Rural communities worldwide are grappling with escalating challenges brought on by the climate crisis. As disasters become more frequent and severe, and environmental conditions grow harsher, the burden on these communities intensifies. However, it is women who are bearing the heaviest brunt of these impacts, including significant financial losses.
Until now, no study had ventured to quantify the monetary costs faced by these women due to heat stress, floods, or droughts. The newly released FAO report, The Unjust Climate: Measuring the impacts of climate change on the rural poor, women and youth, sheds light on how climate change disproportionately affects the rural poor, older people and women in low- and middle-income countries. It reveals billions of dollars in losses among female-headed farming households, further widening the income gap between men and women.
Invest in women to accelerate development for all: UNCTAD chief (UNCTAD)
As the world marks International Women’s Day on 8 March, UNCTAD Secretary-General Rebeca Grynspan calls for bolder efforts to invest in creating equal opportunities for women and girls across the globe. They often get less access to education and health care, are paid less than men and are more likely to leave work to care for families.
It’s now projected that closing the global gender gap will take almost 132 years – about 30 years more than estimated in 2019. According to the United Nations, accelerating the pace to achieve gender equality by 2030 would require an additional $360 billion each year.
Speaking on a special episode of UNCTAD’s Weekly Tradecast, Ms. Grynspan underlined the pivotal role that investing in women plays not only in achieving gender equality but also in building stronger, more resilient and sustainable economies and societies for everyone.
Video: Women’s Day: Why investing in women is the key to faster development for all
World Bank: International Women’s Day 2024
Trillion-dollar shift urgently needed to align global finance with climate and development goals (UNCTAD)
An estimated $4 trillion needs to be mobilized each year to fight climate change and achieve the Sustainable Development Goals (SDGs) UNCTAD’s latest Trade and Development Report says. This amounts to the GDP of Germany in 2022 and can only be accomplished through a major shift in global financial flows, entailing the reallocation of trillions of dollars currently funding – directly and indirectly – economic activities that undermine these goals.
The estimated financing needs represent just 1% of total global financial assets, currently valued at more than $470 trillion. “But it’s not easy to shift resources away from long-standing and often profitable activities,” says Anastasia Nesvetailova, head of UNCTAD’s macroeconomic and development policies branch.
The report highlights that, for example, eight years after the Paris Agreement, finance for fossil fuels continues unabated at more than $1 trillion annually to companies supporting new development projects.
See also: Greening global trade: A reform agenda for a sustainable future (YaleNews)
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Automotive demand for platinum expected to hit seven-year high this year (Engineering News)
This year could potentially turn out to be quite an interesting year for platinum as a commodity and also as an investment, with the 2023 platinum market deficit of 878 000 oz forecast to be followed by a 2024 deficit of 418 000 oz.
In addition to automotive demand being poised to reach the seven-year-high figure of 3 297 000 oz, demand for platinum from stationary fuel cells and electrolysers is set to rise by more than 120%, amid green hydrogen projects getting under way in Europe, following oversubscribed auctions, and also in North America, where the Inflation Reduction Act is stimulating widespread development.
Contrasting sharply with this are the two substantial consecutive yearly platinum supply deficits, plus a seeming momentous decline in above-ground stocks, which is kindling hopes of a much-needed price rise.
Treasury urged to fast track harmonization of custom and excise duty of ethanol in EAC bloc (Capital News)
The National Treasury has been urged to speed up the harmonization of customs and excise duty on ethanol in the East Africa Community (EAC) region to protect Kenyans from exploitation by unscrupulous dealers and traders. Interior Cabinet Secretary Kithure Kindiki on Wednesday called on the Njuguna Ndung’u-led Ministry to complete the process within 45 days.
Kindiki added that the Kenya Bureau of Standards shall within 45 days ensure that all industrial ethanol is denatured or marked with a denaturing agent (denatonium benzoate) to prevent diversion and/or the accidental use of industrial ethanol in alcohol manufacture. He disclosed that within 60 days, the National Treasury shall conclude taxation proposals for the incorporation of a model of taxation based on alcohol content.
Botswana pushes for exemption of citizens from Kenya’s eTA (CGTN Africa)
Botswana will soon engage Kenya to lobby for the exemption of its citizens from the East African country’s electronic Travel Authorization (eTA) requirement. Botswanan President Mokgweetsi Masisi said on Monday that the eTA, a semi-automated system that determines the eligibility of visitors to travel to Kenya, has imposed unexpected costs on some Botswanan citizens wishing to travel to Kenya.
Vertical market linkage favors Ethiopia’s coffee: Authority (ENA)
Ethiopian Coffee and Tea Authority (ECTA) disclosed that the vertical coffee market linkage is benefiting farmers, export associations, and coffee suppliers thereby avoiding manipulators. Authority Director General Adugna Debela (PhD) told The Ethiopian Press Agency (EPA) that the Authority is working on alternative approaches to legal coffee producers and suppliers in order to benefit them and the country sustainably as well.
The Authority secured 620 million USD from coffee export of the planned 1.75 billion USD to be achieved this fiscal year, he said, adding that the Authority is working hard to achieve its target utilizing the suitable season. He further stated that 80% of the coffee pruning that has been carrying out on 500,000 hectares is achieved. Adugna expressed that the pruning is significantly helpful to increase the productivity and production of coffee by three folds whereas improving the quality by 30 % to 40 %. The effort has paid off as the international coffee market was reduced last year by 32 % while the quality of Ethiopian coffee increased by 18 %.
He remembered that the vertical coffee market linkage was commenced three years ago and gained merely 700 million USD whilst the authority secured 1.42 billion USD from exported 300,000 tons of coffee in 2022.
New Reports Identify Pathways to Build a Climate-Smart Economy in Zimbabwe (World Bank)
Zimbabwe remains vulnerable to climatic shocks and without adaptation, climate change will impose high costs on the economy, getting progressively larger over time, and this could cost nearly 5 percent of GDP annually by 2050.
The Zimbabwe Country Climate and Development Report (CCDR) and the Country Private Sector Diagnostic Report (CPSD) reports launched recently by the World Bank point to Zimbabwe’s abundant natural capital (mineral and renewable) as key to driving the country’s growth potential. Furthermore, leveraging the private sector to build a climate-smart resilient economy could reap dividends for the country that has significant opportunities in several key value chains such as agribusiness, tourism, and green minerals mining.
Women inclusion in politics, governance essential for Nigeria’s sustainable development (Tribune Online)
The European Union (EU) Ambassador to Nigeria and ECOWAS, Samuela Isopi, has emphasised that women’s active participation in decision-making and politics is an essential factor in helping Nigeria achieve equality, sustainable development, peace, and democracy. She noted that while women have the fundamental right to participate in political life, most of them still face numerous social, cultural, and financial challenges.
Therefore, she reminded stakeholders, especially the National Assembly, that the ongoing constitution reform process presents Nigeria with a unique opportunity to join the league of progressive nations in promoting gender parity through the adoption of a legal framework that discourages discrimination based on gender.
US, Morocco Sign Action Plan to Boost Cooperation Against Climate Challenges (Morocco World News)
Morocco and the US signed the fourth cooperation action plan for 2024-2027 as part of the two countries’ determination to continue to work to achieve environmental and sustainable development goals. The action plan covers priority areas, including environmental laws and regulations as well as climate change, green growth, economy as well as environmental education.
Minister of Energy Transition and Sustainable Development Leila Benali signed the agreement with US ambassador to Morocco Puneet Talwar today, in an effort to strengthen actions towards the achievement of sustainable, national objectives in line with the new development model. In a press statement, Benali expressed satisfaction with the signing of the agreement, stressing that the aim is to strengthen cooperation relations between the two countries in terms of biodiversity, environmental protection, and energy transition.
Africa Needs A Transcontinental Trade Adjustment And Facilitation Fund (Forbes)
The debate about establishment of the Africa Continental Free Trade Agreement (AfCFTA) unveiled in 2019 has focused on a core—and for now—the most visible elements of the agreement: African governments’ commitments to reduce trade policy barriers—mostly import tariffs—on goods traded among the 54 countries on the continent.
Unfortunately, Africa’s leaders have paid less attention to the reform of two equally important corollary measures to establish modern continent-wide institutions and administrative rules: (i) those that facilitate or otherwise enhance consistency of regulatory protocols governing cross-border commerce—an “African Transcontinental Trade Facilitation Fund” to enable uniformity and implementation of licensing protocols, and (ii) those that cushion the impacts from closure or relocation of African firms as well as the layoff, retraining or relocation of workers—an “African Transcontinental Trade Adjustment Assistance Fund.”
Global Players Exploring Opportunities Within African Continental Free Trade Area (AfCFTA) (Modern Diplomacy)
The scramble for the multidimensional control of the African continent by global players is a geopolitical reality. In order to be part of this geopolitical arena, foreign players have been devising different mechanisms for revitalizing partnership and strengthening cooperation with Africa, says Dr. Babafemi A. Badejo.
Many foreign players and investors are now looking forward to exploring several opportunities in the African Continental Free Trade Area (AfCFTA), he adds. With an array of economic activities undertaken currently in various sectors, building media network is one of the instruments for consolidating their influence, and broadly boost the understanding of their corporate interest, products’ image and business services among the large spectrum of the population.
During this interview, Professor Babafemi A. Badejo says Russia needs a comprehensive African agenda and a well-defined approach with its economic diplomacy, it has to take hyperbolic steps in raising its economic influence in Africa.
African countries should unite on the reform of the global financial architecture (UNECA)
The 56th Conference of Ministers of Finance, Planning and Economic Development (COM2024) closed in Victoria Falls, Zimbabwe with a consensus that African countries should with one voice, advocate for the reform of the global financial architecture for it to be fit for purpose and serve Africa’s development priorities.
The ministers also called upon countries to develop instruments and institutions that can bridge the technology gap and develop innovative financing mechanisms that can work for Africa with the right governance frameworks.
Claver Gatete UN Under-Secretary-General and Executive Secretary, Economic Commission for Africa (ECA) said the resolution adopted on tax cooperation is important as it will help countries strengthen domestic resource mobilization and prepare for the Financing for Development Conference that will take place in 2025.
In addition to the need for increased financing, they said, there is a need for more effective policy and regulatory frameworks to help to close development and climate finance gaps in Africa, and that a supportive policy environment for scaling up renewable energy.
Miga sticks by €349mn guarantee for African trade finance (Global Trade Review)
The World Bank’s investment guarantee agency has renewed €349mn in cover for a Standard Chartered-led loan to the Eastern and Southern African Trade and Development Bank (TDB), which will be used to finance trade transactions. The guarantee replaces one Miga issued for the first time in 2020 for €358.9mn with a tenor of up to ten years, although original lenders MUFG and SMBC are no longer participating, according to a Miga spokesperson.
Miga says in a statement that the funding will support TDB’s trade finance operations and help close the African trade finance gap, which the African Development Bank (AfDB) estimated to be US$81.8bn in 2019 and has likely grown since.
The EAC wants to become a “Political Confederation”. What could this mean? (tralac)
The media recently reported that the process of transforming the EAC into a political confederation “is in progress”. Certain recommendations have already been made by a “Committee of Experts” tasked with drafting a model constitution for the EAC confederation. This Confederation will apparently have its own institutions, officials, and funds. It would deal directly with Partner States rather than EAC citizens. The Confederal authority will, however, have the right to suspend or expel a member state that violates the confederal constitution.”
These matters require careful negotiations about demarcating powers between the member states and confederal authorities. Specific legal instruments will have to be drafted, be ratified by the Partner States, and gradually implemented. They will have to be aligned to existing EAC institutions, such as the Legislative Assembly and the East African Court of Justice. This will take time and cautious statecraft; African States treasure their sovereignty.
SADC tackles impediments in the SPS management system of SADC EPA Member States
The Southern African Development Community (SADC) Secretariat convened a five-day capacity-building workshop in the Kingdom of Lesotho from 4-8 March 2024 aimed at enhancing capacity on food safety principles and promoting general awareness on sanitary requirements that are needed for participating in exporting food products and agriculture commodities in the European Union (EU) market.
Agriculture is one of the sectors that benefits extensively from the improved market access under the EU SADC EPA particularly sugar, dairy products, canned fruits, flowers and fisheries. Mr. Lebusetsa Pholosi, Programme Officer, EPA Unit at the SADC Secretariat highlighted that the EU grants 100 percent duty-free quota-free access for products originating from Botswana, Eswatini, Lesotho, Namibia, and Mozambique and removes customs duties on 98.7% of imports coming from South Africa.
African Seed Trade Members Meet to Boost Seed Adoption, Distribution (Voice of America)
More than 350 delegates from governments, research institutions and seed production companies are gathering in Kenya this week to address challenges in getting good-quality seeds to African farmers. Experts say the lack of good seeds is hampering food production across the continent and contributing to the hunger crisis in many countries.
According to U.N. agencies, more than 280 million people in Africa are food insecure, with over a billion unable to afford healthy diets. One of the problems is that quality seeds are inaccessible to many African farmers, leading to higher rates of crop failure.
Charles Miller, a board member of the African Seeds Trade Association, says countries would benefit if they harmonized their policies so seeds could be shipped across borders with no issues.
WTO asks African nations to improve quality of shea butter to boost exports (The Cable)
The World Trade Organisation (WTO) says the shea butter market is expected to reach about $850 million by the end of 2027. Delivering a virtual address at the 2024 shea annual conference organised by the Global Shea Alliance in Abuja, Ngozi Okonjo-Iweala, director-general of the WTO, said it is crucial to look at the shea value chain beyond farming and processing for butter.
Agricultural Trade between North Africa and the EU in Times of Crisis (Transnational Institute)
Despite the noticeable growth in agricultural trade volumes between North Africa and the EU, stubborn issues such as food insecurity, escalating poverty and hunger rates, widening social and gender inequality, and the degradation and exhaustion of vital natural resources persist. These challenges undermine the region’s stride towards the Sustainable Development Goals (SDGs).
This unequal exchange becomes clear when we look at the nature of the products exported from Tunisia and Egypt to Europe. Since then, trade with the EU has steadily increased with European markets accounting for 70.9% of Tunisia’s exports in 2022.
UNCTAD chief: Fractured world in crisis demands ‘immediate action’ from G20
At a record high of $92 trillion, global public debt poses not only financial challenges but also a development crisis, UNCTAD Secretary-General Rebeca Grynspan told a meeting of the Group of 20 (G20) held in Brazil on 29 February.
The G20, which comprises the world’s major economies, has three priorities for 2024 under the Brazilian presidency: fighting poverty and hunger, the energy transition and sustainable development, and governance reform. A lead speaker before the bloc’s finance ministers and central bank heads, the UNCTAD chief urged comprehensive and immediate efforts to address the systematic barriers in the international financial architecture, including the reform of the G20’s Common Framework on debt restructuring and relief.
BRICS pursues de-dollarisation with blockchain-based payments (The Paypers)
The five-nation BRICS group comprising Brazil, Russia, India, China, and South Africa will work on creating a payment system based on blockchain and digital technologies, a report by Russian news agency TASS said. BRICS officials emphasised the importance of establishing an autonomous BRICS payment system, leveraging cutting-edge tools like digital technologies and blockchain. The priority is to ensure convenience for governments, individuals, and businesses, along with cost-effectiveness and non-political influences.
Gen AI, sustainability, monetisation key themes of 2024 TMT predictions (Engineering News)
Generative artificial intelligence (AI), sustainability and monetisation have emerged as three key themes in the 2024 edition of advisory firm Deloitte’s ‘Technology, Media and Telecommunications (TMT) Predictions’ report. The TMT report outlines 19 global trends for 2024, grouped into four categories or themes, namely generative AI; sustainability; media, entertainment and sports; and telecoms and technology, said Deloitte Global TMT research head Paul Lee.
“The first four predictions all focus on generative AI, and these are four disparate but all intimate themes, and with every technology, our underlying question is, would it monetise and if so, how?”
More global trade news:
Global Challenges Must Be Tackled Collectively (Voice of America)
Shaping an inclusive digital economy (China Daily)
Trade, sustainability and climate: What is at stake 30 years after WTO’s creation? (WTO Blog)
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Workshop aims to provide an overview of the AfCFTA (SAnews)
South Africa’s Special Economic Zones operators and businesses are to be exposed to the benefits of the African Continental Free Trade Agreement (AfCFTA) during a workshop by the Department of Trade, Industry and Competition (dtic). The department will host the workshop in collaboration with the Industrial Development Corporation (IDC) at the IDC Auditorium in Sandton on Wednesday from 09:00 in the morning.
The six sector master plans targeted are steel and fabrication, agriculture and agro-processing, retail-clothing textile leather and footwear, automotive industry, sugar value chain and forestry. “The aim is to share export opportunities for the SEZs arising from the AfCFTA and to sensitise them on the benefits of exporting under the AfCFTA,” Mlumbi-Peter said.
South Africa formally accepts Agreement on Fisheries Subsidies (WTO)
South Africa deposited its instrument of acceptance of the Agreement on Fisheries Subsidies on 1 March. Ebrahim Patel, Minister of Trade and Industry, presented South Africa’s instrument of acceptance to Director-General Ngozi Okonjo-Iweala at the closing session of the 13th Ministerial Conference (MC13) taking place in Abu Dhabi, United Arab Emirates.
Government working to address South Africa’s gas supply (SAnews)
The Department of Mineral Resources and Energy (DMRE) is expected to present a Gas Master Plan to Cabinet this month to address gas supply in the country. This is according to DMRE Minister Gwede Mantashe, who delivered the opening address at the Africa Energy Indaba held in Cape Town.
Recent media reports have suggested that South Africa may run out of natural gas supply in 2026, which could have devastating consequences for jobs and manufacturing. In his written speech, the Minister said government has “noted concerns regarding the current and future gas supply in the South African market due to commercial disputes between Sasol and its customers”.
Kenya-EU Trade Deal Faces Headwinds Amid Green Deal Compliance Concerns (Business Daily Africa)
The free trade agreement between Kenya and Europe may encounter challenges, as it needs to address compliance issues related to the EU Green Deal. This initiative binds Kenya’s exports to sustainable production under the farm-to-folk approach, potentially impacting the perceived benefits of the agreement.
Last week, Kenya moved closer to sealing a duty and tax-free trade pact with the EU after the agreement received approval from the EU parliament. However, the European Green Deal, launched in December 2019, poses hurdles, outlining stringent policies and targets to make the EU climate-neutral by 2050.
Ruto uses back channels to ease Ethiopia, Somalia tensions (The East African)
Kenya’s President William Ruto has engaged a higher gear for back channels to ease tension between Ethiopia and Somalia, motivated by business fervor in both countries. And, from this week, both Addis and Mogadishu are expected to tone down their public rhetoric against each other, sources privy to the discussions indicated.
“The two leaders discussed ways and means to expand close partnership on a wide range of issues, including further developing bilateral economic and security ties to the benefit of both the people of Somalia and Kenya,” said a dispatch after Dr Ruto and Mr Mohamud met at State House, Nairobi.
Ethiopian Airlines rues naira devaluation, inaugurates $55m e-commerce facility (Daily Trust)
The Group Chief Executive Officer of Ethiopian Airlines, Mesfin Tasew, has said the devaluation of naira has affected the airline’s cash flow management but stated that it has not affected passenger volume. Tasew said this in an interview on the sidelines of the inauguration of a state-of-the-art e-commerce cargo terminal in its hub in Addis Ababa which is a $55m investment to facilitate the development of e-commerce in Ethiopia, Africa.
The GCEO hinted about replicating the e-commerce facility outside Addis Ababa, especially Nigeria, in the near future. He said the inauguration of the e-commerce facility is a “significant breakthrough for the Ethiopian Group and the entire African economy. “We have implemented high-end technologies in the infrastructure that revolutionise the way goods are transported and delivered in the e-commerce industry in Africa.
Customs opens 90-day window for vehicle import duty regularisation (Daily Trust)
The Nigeria Customs Service (NCS) has announced the introduction of a 90-day window to facilitate the regularisation of import duties on specific vehicle categories.
“Owners of vehicles with pending customs duties or those detained due to undervaluation can apply through zonal coordinators and CAC FCT Command. However, it’s essential to note that seized and condemned vehicles are not eligible. “The valuation will follow the VIN method, and duty payments, accompanied by a 25% penalty, must adhere to import guidelines and procedures. Vehicle owners are encouraged to seize this opportunity for compliance within the specified timeframe,” Maiwada said.
The Kingdom of Lesotho streamlines border operations to facilitate trade efficiently (SADC)
The Kingdom of Lesotho validated the draft Coordinated Border Management (CBM) National Strategy which is geared at enhancing border efficiency by eliminating redundancies, duplications, and delays without compromising controls, safety and security in Maseru, Lesotho between 26 - 27 February 2024.
The Southern African Development Community (SADC) Secretariat, through the European Union (EU) funded SADC Trade Facilitation Programme (TFP) provided technical assistance to the Kingdom of Lesotho in developing the draft CBM.
The Chairperson of the National Trade Facilitation Committee (NTFC), Ms Malineo Seboholi, highlighted that trade facilitation is central to Lesotho’s achievement of developmental aspirations as a landlocked country.
IMF Staff Completes 2024 Article IV Mission to Nigeria (IMF)
“Nigeria’s economic outlook is challenging. Economic growth strengthened in the fourth quarter, with GDP growth reaching 2.8 percent in 2023. This falls slightly short of population growth dynamics. Improved oil production and an expected better harvest in the second half of the year are positive for 2024 GDP growth, which is projected to reach 3.2 percent, although high inflation, naira weakness, and policy tightening will provide headwinds.
“Recent improvements in revenue collection and oil production are encouraging. Nigeria’s low revenue mobilization constrains the government’s ability to respond to shocks and to promote long-term development. Non-oil revenue collection improved by 0.8 percent of GDP in 2023, helped by naira depreciation.”
Reassuring Investor Confidence in the Central African Economic and Monetary Community (CEMAC) Region (Africa.com)
In a bid to safeguard foreign exchange reserves in the region, the Bank of Central African States (BEAC) imposed stricter rules on currency transfers and payments in January 2022 – a move it has been unwilling to reverse despite opposition by energy stakeholders and leaders. Recent regulation significantly impacts dollar-dominated industries – such as the oil and gas sector – and reform is imperative to regain foreign investor confidence in West African oil and gas.
The upcoming African Energy Week (AEW): Invest in African Energy conference – scheduled for November 4-8 in Cape Town – will delve into the West African region’s vulnerability caused by foreign exchange regulations. Centered around facilitating investment in African oil and gas, the event unites regional energy leaders, financial institutions and foreign investors to discuss strategies for improving business environments; facilitating cross-border deals; and reassuring investor confidence.
The generally low share of intra-African trade is often cited as evidence of a lack of effective regional integration in Africa. In the first ten months of 2023, intra-African trade accounted for only 18 per cent of Africa’s total exports and 15 per cent of African total imports. For West Africa, the share of intra-African trade stood at 21 per cent of total exports and 15 per cent of total imports. Within West Africa, the intraregional trade share stood at 14 per cent in terms of exports and 12 per cent in terms of imports.
Among West African economies, the share of intraregional trade is higher in The Gambia, Guinea-Bissau, Mali, Niger, Senegal, and Togo. In part, this can be attributed to transit trade to the region’s landlocked countries, namely Burkina Faso, Mali, and Niger. Togo’s high intraregional export share (70 per cent) reflects the activities in the port of Lomé, the major transshipment centre in West Africa. The high intraregional export share of Niger (53 per cent) partly reflects transit trade activities (to Burkina Faso and Mali) but also exports of agricultural goods to Nigeria. Mali is the destination of many transit trade activities in West Africa, from Togo, Côte d’Ivoire, and Senegal.
Intra-Africa Entrepreneurship: Nurturing Africa’s economic renaissance (Nairametrics)
A wave of entrepreneurial vitality is sweeping the African continent, with more people daring to establish and nurture enterprises within and across the continent.
The African Development Bank has previously indicated that 22% of working-age people in Africa start a new business, more than anywhere else the highest rate of entrepreneurship in the world. These businesses are also innovative, with 20% of new African entrepreneurs introducing a new product or service. At the same time, funding for startups and African businesses has witnessed unprecedented growth in the last decade, albeit more muted following the aftershocks of COVID-19.
Still, this intra-Africa entrepreneurship is playing a pivotal role in creating jobs and spurring growth. As a collective, Africa could emerge as one of the world’s largest economies by 2050. Fostering its entrepreneurial spirit could be catalytic in propelling us toward this milestone.
Fifty-sixth session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development
African countries trading more outside the continent than amongst themselves, ECA report (UNECA)
The African share of global trade remained at less than 3 per cent, driven largely by merchandise trade, an indicator that African countries continue to trade with the rest of the world more than among themselves, according to a new report on Assessment of progress on regional integration in Africa by the Economic Commission for Africa (ECA).
Despite trade under the Agreement Establishing the African Continental Free Trade Area having officially started on 1 January 2021, the envisaged changes in intra-African trade are yet to appear. Intra-African trade as a share of global trade declined from 14.5 per cent in 2021 to 13.7 per cent in 2022.
COM2024: Africa is stronger together, says African Union Commission Deputy Chairperson (The New Times)
The outcome of the 56th Session of the Conference of Ministers of Finance, Planning and Economic Development opening held in Victoria Falls, Zimbabwe, will go a long way in realizing and fostering inclusive growth and sustainable development of Africa towards achieving Agenda 2063 and Agenda 2030, Monique Nsanzabaganwa, the Deputy Chairperson for the African Union Commission, said on March 4.
“Today, more than ever, we stand a better chance; to develop Africa’s productive capacities through industrialization; to harness the potential of our youth as an engine for greener economic transformation; to tap Africa’s green potential; to stem illicit financial flows and recalibrate our taxing rights; to harness the role of private sector investments and innovative financing mechanisms; and to reform the global financial architecture. However, no African country can do it alone. Africa is stronger together.”
Global system reform will help Africa (African Business)
Speaking at the official opening of the Ministerial Segment of the 56th Session of the ECA Conference of African Ministers of Finance, Planning and Economic Development, Gatete said with 2.7% growth in 2023, and a projection of 2.4% in 2024, inflation at nearly 20% and 21 countries at risk of, or already in, debt distress, the future seems bleak.
But all was not lost, he said, proposing a cocktail of solutions to help the continent navigate the restricted fiscal space. “First, the global financial architecture needs to be fixed. It must work for everyone and reflect the new dynamics. In this regard, we welcome the membership of the African Union in the G20. But we need to go further!
Africa to be $2.5tr short of climate finance by 2030, UN says (Engineering News)
Africa will be $2.5-trillion short of the finance it needs to cope with climate change by 2030, a UN official said on Monday, adding that the continent has contributed the least to greenhouse gas emissions while seeing some of the worst impacts.
Africa attracts only 2% of global investments in clean energy but needs $2.8-trillion of investment in the sector by 2030, United Nations Economic Commission for Africa chief economist Hanan Morsy told a conference in Victoria Falls, Zimbabwe, warning against the consequences of under-funding.
Reports:
pdf Overview of recent economic and social developments in Africa (512 KB)
pdf Assessment of progress on regional integration in Africa (345 KB)
Africa Taking Charge Of Its Development Agenda (AU)
The African Union is playing a leading role in improving Africa’s partnerships and refocusing them more strategically to respond to African priorities for growth and transformation as accentuated in the continent’s development blueprint, Agenda 2063. In recent months the various development partners working with the African Union, met with the AUC Chairperson and other leaders in the AU Commission (AUC), to discuss how to strengthen cooperation between them, and streamline agreed projects and activities to ensure they are delivering on “the Africa We Want”.
The following major activities took place under the different partnerships: The AU- EU Partnership; the Tokyo International Conference on African Development (TICAD 7) Summit; African Union – Korea; the Africa - Arab partnership; and the African Union – Eurasia Economic Commission (EEC).
Related: EU must overhaul Africa trade offer to parry China, warns MEP (EUObserver)
The African Union is weak because its members want it that way – experts call for action on its powers (The Conversation)
The African Union (AU) comes in for a lot of criticism. Most recently this is from within its own ranks. The AU Commission chairperson, Moussa Faki Mahamat, set out his frustrations after an AU summit in February 2024. The commission is the executive organ which runs the AU’s daily activities.
Mahamat accused member states of getting in the way of the commission doing its work, and failing to match rhetoric with action: Over the last three years, 2021, 2022 and 2023, 93% of African Union decisions have not been implemented. We think many of the criticisms of the AU are justified. This is based on more than 15 years of researching its political and legal development.
Africa: A Global Food Exporter By 2050, a Myth or Reality? (Modern Diplomacy)
Africa plans to become a global food exporter by 2050, as the continent currently imports about $50 Billion worth of agricultural products per year. This goal is expected to be achieved through the AfCFTA agreement where Intra-African agricultural trade is projected to increase by 574% after the elimination of Import tariffs by 2030. By the year 2035, the total exports would increase by nearly 29 percent relatively to the baseline. Agriculture exports will experience smaller gains of 49 percent for the intra-African trade and 10 percent for the extra-Africa trade. In terms of volume, it is USD 191 Billion.
DDG Ellard gives debrief on key outcomes from MC13 and path forward (WTO)
Watch the video here: here.
EU secures results at WTO Ministerial but important work remains to reform global trade rulebook (The European Sting)
The European Commission was instrumental in brokering important outcomes at the 13th ministerial meeting of the World Trade Organization (MC13) that ended Friday in Abu Dhabi. Over the past months, the EU had worked for ambitious results to revitalise the WTO at a time of rising geopolitical tensions, including a comprehensive agreement on global fisheries subsidies, agriculture reform, and meaningful progress on dispute settlement. The EU regrets that, despite willingness by a large majority of WTO members, it was not possible to find compromises on these issues.
“At a time of rising geopolitical tensions and political uncertainty, I welcome that MC13 delivered some positive results for the global trading system,” said Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade. “However, we were disappointed at the lack of breakthroughs in a number of important areas. Agreements were within reach, supported by an overwhelming majority of members, but ultimately blocked by a handful of countries – sometimes just one. The EU will continue to actively support work on a more inclusive and fit-for-purpose global trade rulebook and to show leadership and engagement. We hope all our partners will replicate this can-do approach.”
LDCs to get interim duty-free and quota-free market access after graduation (The Kathmandu Post)
During the 13th Ministerial Conference of the World Trade Organisation that concluded in Abu Dhabi of the UAE last Friday, member countries agreed to provide duty-free and quota-free market access for a smooth and sustainable transition period for the countries that are set to graduate from least developed countries (LDCs) category. Nepal, Bangladesh and the Lao People’s Democratic Republic will formally come out of the UN-defined category, LDC, by the end of 2026 and become developing countries.
More LDCs will follow these countries. There are 45 LDCs, of which 15 are now on the path to graduation to developing countries, and 10 are WTO members. Last December, Bhutan came out of the list.
Related news:
Fractures in global trade deepen as WTO musters only a small win (The Economic Times)
WTO conference ends in division and stalemate - does the global trade body have a viable future? (The Conversation)
A 2024 guide to customs compliance and cross-border trade (Trade Finance Global)
The 4th International Conference on Small Island Developing States (SIDS4) will be held in Antigua and Barbuda from 27 - 30 May 2024, under the theme “Charting the course toward resilient prosperity”. It will aim to assess the ability of small island developing States (SIDS) to achieve sustainable development, including the 2030 Agenda for Sustainable Development and its Sustainable Development Goals. The SIDS4 Conference will bring together leaders to agree on a new programme of action for SIDS with a focus on practical and impactful solutions and to forge new partnerships and cooperation at all levels. It will result in an intergovernmentally agreed, focused, forward-looking and action-oriented political outcome document.
From 15 December 2023 to 19 January 2024 a global online stakeholder consultation was held to solicit informal inputs from stakeholders related to the themes of the five interactive dialogues. A summary report is now available highlighting key messages and takeaways from the consultation.
Trade facilitation could make countries more resilient to climate impacts (Brookings)
Following the United Nations Climate Change Conference, or COP28, in Dubai in December 2023, two of our Brookings colleagues, Samantha Gross and Landry Signé, pointed out that the international community is failing to mobilize the resources to help countries improve their resilience to climate change. This is particularly pertinent as people in the worst affected communities are increasingly compelled to migrate in search of safety and stability. Apart from disasters and extreme weather displacing people, climate change is a “threat multiplier” that exacerbates instability, threats to security, and existing inequalities that drive people from their homes.
Given the mounting challenges of climate change, including large-scale displacement, Europe and the United States should consider extending preferential trade arrangements as an innovative policy approach to supplement the Loss and Damage Fund that was operationalized at COP28 to help the most vulnerable countries. By itself, the pledges committed to the fund are gravely insufficient to meet the actual costs of addressing climate damages and adaptation financing needs.
A Global Cash-Transfer Fund Could End Extreme Poverty (Project Syndicate)
For decades, the international community has grappled with the challenge of ending extreme poverty, which is the leading Sustainable Development Goal for 2030. Despite some progress, we remain far off track, with an estimated 700 million people still struggling to survive on less than $2.15 per day. Unlike in previous decades, however, we now have a solution that can be scaled up rapidly to accelerate the end of extreme poverty: direct cash transfers to the poorest households.
Direct transfers are powerful tools for helping individuals to take control of their lives and invest in their families’ well-being. That is why high- and middle-income countries are increasingly incorporating cash aid as a central part of their social safety nets. Still, it is estimated that less than 5% of the $200 billion spent annually on international development is allocated to cash transfers.
Gas touted as cleanest energy source in transition to sustainable fuels (Daily Maverick)
At their summit in Algiers, leaders of gas-exporting countries asserted their sovereignty over their reserves and their determination to promote the resource as affordable, accessible, sustainable and secure. The 20-member Gas Exporting Countries Forum (GECF) gathering came three months after COP28 in Dubai declared that planetary survival depended on a transition away from fossil fuels, with a goal of ending their use by 2050. The Algiers Declaration presents gas as the cleanest source of energy in the transition from fossil to sustainable fuels.
Empowering LDCs: Harnessing STI for Economic Growth and SDGs Achievement (BNN Breaking)
Amidst the backdrop of global advancements in science, technology, and innovation (STI), the world’s 45 Least Developed Countries (LDCs) find themselves at a significant crossroads. With challenges ranging from infrastructural deficits to educational barriers, these nations struggle to harness the full potential of STI, essential for their socio-economic transformation and sustainable development. This disparity not only impedes their progress towards the Sustainable Development Goals (SDGs) but also widens the gap between them and more developed regions, threatening to leave them further behind in the fast-paced global economy.
Accelerated by COVID and AI, Global Digital Landscape Remains Uneven (World Bank)
The COVID-19 pandemic brought about unprecedented acceleration of digital transformation across the globe – with spikes in data traffic, app usage, IT sector growth, digital business resilience, and much more. All countries saw a significant uptick in digital adoption, though the gains in low-income countries were not enough to keep the gap with high income countries from growing or to close the digital divide within their borders. In low-income countries, only one in four people are able to access the internet.
The World Bank Group’s new “Digital Progress and Trends Report 2023” provides a sweeping analysis of countries’ production and use of digital technologies – from digital jobs, digital services exports, and app development, to internet use, affordability, quality, and more. Gaps in internet speed, data traffic, and digital use are hampering digital gains for individuals and firms in low- and middle-income countries.
More action needed to tackle disinformation and enhance transparency of online platforms: OECD
As roughly half the world’s population prepares to vote in elections, a new OECD report offers the first baseline assessment of how OECD countries are upgrading their governance measures to support an environment where reliable information can thrive, prioritising freedom of expression and human rights, and sets out a policy framework for countries to address the global challenge of disinformation.
Facts not fakes: Tackling disinformation, strengthening information integrity emphasises the need for democracies to champion diverse, high-quality information spaces that support freedom of opinion and expression, along with policies that may be utilised to increase the degree of accountability and transparency of online platforms.
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Solar, battery, inverter imports surged to R70bn in 2023 as wind turbines recovered from two-year lull (Engineering News)
South African imports of solar panels, lithium-ion batteries and inverters climbed to a record $3.8-billion last year, or about R70-billion, while imports of wind turbines began to recover following a two-year lull, analysis compiled by Trade & Industrial Policy Strategies senior economist Gaylor Montmasson-Clair shows.
Imports in 2023 were double the $1.7-billion of 2022 and lifted the overall value of the three energy components imported over the ten years from 2014 to 2023 to above $10-billion. The analysis points to an extremely strong rise in solar-panel imports last year, which was also the country’s worst-ever year for loadshedding.
African experts meet to discuss auto industry standardisation (Engineering News)
South Africa is hosting the African Organisation for Standardisation Technical Committee 59 (ARSO/TC 59) this month to discuss technical standardisation within the African automotive industry. The four-day event includes the participation of technical experts from the automotive industry across continental national standards bodies.
ARSO/TC 59 is being held with the objective of reaching consensus on the adoption of international standards and harmonisation of standards for the region in support of the African Continental Free Trade Area (AfCFTA).
ARSO secretary-general Dr Hermogene Nsengimana says the established Strategy for the African Automotive Manufacturing Sector, within the framework of the AfCFTA, highlights the need of harmonised standards in tackling the challenge of imported vehicles, regional value chains, and the long-term goal of establishing a common external tariff for the sector.
Kenya to ‘fast-track’ Lapsset projects to woo Ethiopia (The East African)
Kenya and Ethiopia have agreed to fight insecurity, review tariffs and fast-track completion of infrastructure projects to facilitate seamless flow of cargo from Lamu to Ethiopia. The two governments on Thursday held a meeting during which Nairobi assured Addis Ababa of a functional Port of Lamu, with a superstructure, cargo yard, operational equipment, port workshop, warehouses, office space, and accommodation facilities. The Kenya Ports Authority (KPA) will rework port tariffs as Ethiopia puts in place plans to start using the port the month. The tariffs are one of the conditions Addis asked to be considered after Kenya assured them of security on the Lamu Port, South Sudan Ethiopia transport (Lapsset) corridor.
Uganda ready to sign Africa open skies plan (The East African)
Uganda is keen to sign the Single Africa Air Transport Market protocol, ending years of fence-sitting. Authorities in Kampala indicated this week that the Uganda will join the open skies regime in the next financial year.
“We are left with approval by Cabinet. Once that is done, we will be good to go,” said Fred Bamwesigye, director-general of Uganda Civil Aviation Authority (UCCA) at a meeting in Kampala. Mr Bamwesigye, who represented Works and Transport Minister Gen Edward Katumba Wamala, said Uganda’s reluctance to join the Single Africa Air Transport Market (SAATM) since its launch in 2018 was due to a need to shield its national carrier from competition.
Other considerations were invest in and build new infrastructure such as the Kabalega International Airport, to support traffic numbers resulting from liberalisation; improve Entebbe International Airport to requisite standards as well as reorient the regulatory regime, which was inward-looking.
Increase in Domestic Savings Can Unlock Rwanda’s Private Sector Potential (World Bank)
Maintaining Rwanda’s development trajectory and achieving the goals outlined in its Vision 2050 will require increased efforts to shift the drivers of economic growth towards a private investment-led model, given the country’s depleting fiscal space. This is according to the 22nd edition of the Rwanda Economic Update (REU): Mobilizing Domestic Savings to Boost the Private Sector in Rwanda, which underscores the critical link between private sector investment growth and domestic savings capacity.
Given the backdrop of sluggish productivity and limited fiscal resources, there is therefore a need for Rwanda to bolster private investment to adequately complement public spending and sustain economic growth. Rwanda’s financial sector, industry leaders and policymakers need to address certain challenges to maximize the country’s savings potential.
The Board of Directors of the African Development Fund approved, in Abidjan on 27 February 2024, $11.96 million Grant to speed up the establishment of the African Pharmaceutical Technology Foundation, headquartered in Kigali, Rwanda.
The financial support from the African Development Bank Group’s Regional Public Good window, together with a contribution of $1.93 million from the Rwandan government, is intended to implement the Regional Pharmaceutical Sector Support Project in Rwanda.
“The project should produce considerable benefits (outputs and outcomes) throughout Africa,” stated Aissa Touré Sarr, head of the African Development Bank’s Rwanda country office. “The leading-edge research and technological innovations of the African Pharmaceutical Technology Foundation should improve health care outcomes by providing access to advanced medicines and treatments, tackling prevalent diseases and contributing to the continent’s overall health resilience.”
Port of Mombasa receives longest-ever container ship (The East African)
The longest-ever vessel to call on the Mombasa port has berthed, targeting to pick up more than 5,000 cargo containers that would free up massive space at the main gateway. The Mv Kotka, currently sailing under the flag of Liberia and operated by Mediterranean Shipping Company, is 318 metres long and 42.92 meters wide. This is equivalent to three football fields end to end. The ship with 8,000 twenty-foot equivalent units (Teus) capacity docked in Mombasa from the port of Durban Thursday morning carrying 400 empty containers.
Meeting in Abidjan on 14 February 2024, the Board of Directors of the African Development Bank Group approved a loan of $117.9 million to the Democratic Republic of Congo to implement the Project to Support Governance and Skills Development in support of the Agriculture Transformation Programme (PTA).
“This project is to support agricultural transformation in the Democratic Republic of Congo through the improvement of sectoral governance and the quality of labour and by promoting entrepreneurship in agricultural value chains to support the agricultural transformation programme,” explained African Development Bank Director-General for Central Africa, Serge N’Guessan.
Tanzania and Ethiopia seal trade deals (The East African)
Tanzania and Ethiopia this week signed bilateral agreements targeting agriculture, trade, energy and air transport and aviation technology exchange. Tanzanian President Samia Suluhu Hassan and the visiting Ethiopian Prime Minister Abiy Ahmed on Friday witnessed the signing of agreements strengthen trade between the two countries.
Ministry of Foreign Affairs and East African Co-operation said on Friday that the two leaders agreed to deepen trade and bilateral relations that would create new opportunities for trade between Tanzania, with a population of over 61 million, and Ethiopia, with a population of more than 100 million people.
“Ethiopia is globally renowned for coffee and tea production, Tanzania’s tea and coffee are equally popular, therefore, how to access markets together will be an integral part of bilateral agreements during this visit,” Mr Makamba said.
A decade of logistics performance in Africa: Navigating trade and the blue economy (MyJoyOnline)
The Logistics Performance Index (LPI), a detailed gauge developed by the World Bank, has chronicled Africa’s trade logistics landscape since 2007, offering a snapshot of its performance in customs efficiency, infrastructure, international shipments, and the overall quality of logistics services. As Africa confronts the twin tasks of advancing its blue economy and maximizing the AfCFTA’s potential, the LPI not only reflects past and present performance but also serves as a beacon for what could be achieved through sustained focus and development in logistics.
Africa needs supportive policies and robust infrastructure to tap the limitless opportunities of Artificial intelligence to leapfrog its development, experts have said. Speaking at a panel discussion on ‘Fostering prosperity through policies on artificial intelligence in Africa’, on the sidelines of the on-going 56th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development (COM), experts agreed that Artificial Intelligence presented massive development opportunities for Africa if the right policies and infrastructure were in place.
Artificial intelligence, a fast-evolving technology that taps the intelligence of machines or software is transforming all social spheres globally. Research shows that the technology has the potential to contribute up to $15.7 trillion to the global economy by 2030, of which $1.2 trillion could be generated in Africa, representing a 5.6 per cent increase in the continent’s gross domestic product by 2030.
EAC Bloc Has Not Launched Common Currency – Secretariat (Taarifa Rwanda)
The secretariat of the East African Community (EAC) regional bloc has dismissed rumours circulating that a new common currency has been launched. A post on platform X (formerly Twitter), claimed that the bloc’s member countries have launched a common regional currency.
“The EAC Secretariat wishes to inform all our stakeholders that the Partner States’ journey to a single currency is still a work in progress. Kindly ignore any rumors circulating on social media on the unveiling of new banknotes for the region “the EAC stated.
South Sudan’s Economic Leap: EAC Membership Fuels Trade, Investment, and Growth (BNN Breaking)
South Sudan, the world’s youngest nation, is witnessing a substantial economic transformation, thanks to its strategic initiatives and international partnerships. With its recent membership in the East African Community (EAC), South Sudan has unlocked doors to tariff-free trade, attracting significant investor interest and paving the way for economic diversification beyond its oil-dependent economy.
The opening of the one-stop border post at Nimule, located approximately 200km from Juba, symbolizes the burgeoning trade and connectivity between Uganda and South Sudan. This development is crucial for trade via Mombasa, with expansion plans also exploring export routes through Djibouti. Furthermore, the government’s prioritization of the construction of 13 major highways is set to revolutionize the country’s trade and connectivity, with the Pagak Mathiang Malakal Road project, supported by a loan from the Ethiopian government, highlighting efforts to boost economic growth and provide alternative export routes for South Sudanese crude oil.
EAC, US seek stronger trade, investment ties (The Citizen)
Trade and investment ties between East Africa and the United States are set for a boost during a business summit scheduled to take place in Nairobi next month. The event will see US business executives and investors engage with government representatives from East Africa partner states on crucial areas of cooperation.
“They will engage in dialogue that will showcase opportunities that will foster increased two-way trade and investment between the two sides,” the East African Business Council (EABC) said in a statement.
During a similar summit initiated by AmCham with the EAC and other African countries held last year, business deals worth over $700 million were struck. “Such outcomes underscore the summit’s efficacy as a catalyst for advancing business partnerships and investment opportunities,” the regional business body added.
All eyes on Kenya, EAC after European parliament backs free trade pact (The Standard)
Lawmakers at the European Parliament this week voted overwhelmingly to ratify a new bilateral deal that will boost trade between Kenya and the EU bloc. The deal’s controversial negotiations have been years in the making and the landmark nod now paves the way for its implementation. The agreement will now enter into force after the Kenyan parliament also gives its consent.
In signing the deal earlier this year, Kenya risked the wrath of her East African neighbours who have been dithering to sign it. Kenya and the European Union (EU) bloc earlier this year finally signed the bilateral deal that will boost trade between the two regions.
Related: Kenya-EU trade pact to come into force ‘in 2-3 months’ (The East African)
Somalia finally joins EAC as the bloc’s 8th Partner State (EAC)
The Federal Republic of Somalia has finally joined the East African Community as the bloc’s 8th Partner State after officially depositing her instrument of ratification of the Treaty of Accession with the EAC Secretary General at a ceremony held at the EAC Headquarters in Arusha, Tanzania. Somalia’s Minister of Commerce and Industry, Hon. Jibril Abdirashid Haji Abdi, presented the Horn of Africa nation’s instrument of ratification to the EAC Secretary General, Hon. (Dr.) Peter Mathuki, completing the admission process in line with EAC Procedure for Admission of new members.
In line with the EAC Admission Procedure for new members, Dr. Mathuki subsequently pronounced the Federal Republic of Somalia (FRS) as a new member of the Community after receiving the instrument of ratification from the Hon. Abdi. Dr. Mathuki further said Somalia now has the green light to contribute in the development of a roadmap for her integration into the EAC.
CEMAC sees commodity price rise in Q4 2023 but faces bleak outlook for 2024 (Business in Cameroon)
Export commodity prices for the six CEMAC countries experienced a 1.3% increase in the fourth quarter of 2023, according to the Composite Commodity Price Index (CCPI) released on February 29, 2024, by the Bank of Central African States (Beac).
In the previous quarter, the increase was 8.3%. The central bank attributes this growth to rising prices in the agricultural market sector. “The index of prices for major agricultural products exported by CEMAC countries rose by 8.0% to 153.29. This increase, starting since the third quarter of 2022, correlates with ongoing uncertainties in the global economic situation, affecting international markets for products like coffee, cocoa, and bananas,” Beac explains.
ECOWAS is taking steps to address the impediments to the unhindered intra-community movement of persons, goods and services to improve the implementation of its flagship protocol and facilitate the realisation of the economic union of the 15-member community, the President of the Commission, H.E. Dr Omar Alieu Touray has said.
In an address to mark the launch of a new media engagement for the Commission on Wednesday, February 28, 2024, the President said that these include the introduction of two travel documents - the ECOWAS passport and a biometric identity card for intra-community travel for those without their national passports which has been deployed in six Member States. This is in addition to the phased construction of joint border posts to facilitate the processing of people at border posts with the support of the European Union.
SADC adopts technology to drive financial inclusion initiatives within the region (SADC)
The Southern African Development Community (SADC) Financial Inclusion (FI) Subcommittee convened a meeting in Johannesburg, South Africa on 19-20 February 2024 to review progress on the implementation of the SADC Strategy on Financial Inclusion and Small to Medium Enterprises (SMEs) Access to Finance 2023-2028.
The SADC Financial Inclusion Strategy and SME Access to Finance aspires an inclusive, stable, and innovative SADC financial system that empowers individuals and businesses to access and use quality financial services, to contribute to industrialisation, inclusive growth, and resilient, sustainable economic well-being in line with the SADC Vision 2050.
Financial Inclusion is a significant result area of the Support to Improving the Investment and Business Environment (SIBE) Programme, which is a five-year Programme, implemented by the SADC Secretariat and financed by the European Union under the 11th European Development.
Unpredictable global trade reveals the benefits of AfCFTA and intra-African trade as South Africa celebrates first AfCFTA export to Ghana (Business Tech Africa)
Amidst disruptions to traditional trade routes, unpredictable shipping times and soaring freight tariffs caused by the conflict in the Red Sea region, the opportunities the African Continental Free Trade Area (AfCFTA) agreement creates for the development of intra-Africa trade are becoming apparent, says Standard Bank.
“Besides reducing the need to import goods from outside of Africa, the preferential tariff rates promote Africa’s growth. AfCFTA has the potential to boost South Africa’s economy and create new jobs by increasing economic participation.”
See also:
Cross-Border Traders in Zimbabwe Navigate Challenges, Eye AfCFTA Opportunities (BNN Breaking)
Traders await benefits of AfCFTA (African Business)
Experts propose advancing AfCFTA implementation as theme of the next Conference of Ministers (UNECA)
The next Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development (COM2025) will be held in Ethiopia in March 2025. At the closing of the Experts Segment of the Conference of African Ministers of Finance, Planning and Economic Development, on 1 March, the meeting proposed to hold COM 2025 in the Ethiopian capital, Addis Ababa on the theme, “Advancing the implementation of the Agreement Establishing the AfCFTA: Proposing Transformative Strategic Actions”.
In making the case for the theme, ECA Deputy Executive Secretary and Chief Economist, Hanan Morsy, said that inter-regional trade in Africa stands at only 13 percent, compared to 55% in Asia and 70% in Europe. Furthermore, we have witnessed disruptions in global supply chains due to global shocks, which has impacted on costs, trade flows, costs, and efficiency.
Three top priorities for Africa in the G20 (African Business)
Last week, the G20 Finance Ministers and Central Banks Governors gathered in Sao Paulo, Brazil. On the agenda was a multitude of issues, including the reforms of the global financial architecture, the state of the global economy, food security, development and equity, trade and investment, climate change, energy transition, the digital economy, among many others. In the course of 2024, the Brazilian G20 Presidency has scheduled a total of 120 meetings before it hands over the Presidency to South Africa.
2024 is the first year that the African Union is participating as a permanent member. The just-concluded African Union Summit in Addis Ababa, Ethiopia provided key guidance on the process of setting up the support structure around the AU’s participation in the G20. This process will be subject to further discussions among African Union member states. But the G20 agenda is moving forward and seizing this opportunity to already put forward AU proposals is important.
First, the AU can play an important role to advocate other G20 members to double efforts to address the challenge of debt distress in many low- and middle-income countries and address liquidity challenges head on. Second, the African Union Summit deliberations flagged several concerns by African countries regarding the reforms of the global financial architecture. Third, Africa’s fiscal challenges will increasingly arise from trade shocks. Discussions on inequality and development can therefore not be detached from trade.
MC13 ends with decisions on dispute reform, development; commitment to continue ongoing talks (WTO)
The Ministerial Declaration underlines the centrality of the development dimension in the work of the WTO, recognizing the role that the multilateral trading system can play in contributing towards the achievement of the UN 2030 Agenda and its Sustainable Development Goals. DG Okonjo-Iweala emphasized the recognition by members of “the role trade and the WTO can play in empowering women, expanding opportunities for micro, small, and medium-sized enterprises (MSMEs,) and achieving sustainable development in its three dimensions — economic, social and environmental.”
WTO Decision Shields Diagnostics, Therapeutics from TRIPS Waiver Expansion, Bolsters Digital Economy (BNN Breaking)
This move, supported by the National Association of Manufacturers (NAM), underscores the importance of protecting intellectual property to ensure continued innovation and preparedness for future health crises. At the 13th World Trade Organization (WTO) ministerial meeting in Abu Dhabi, a pivotal decision was made not to expand the Trade-Related Aspects of Intellectual Property Rights (TRIPS) waiver to include diagnostics and therapeutics.
WTO’s Abu Dhabi Declaration to empower least developed nations (Arab News)
The least developed countries are set to benefit from the Abu Dhabi Declaration at the 13th WTO Ministerial Conference, improving global supply chain access. Trade deals, aimed at fostering new agreements, will extend international trading system benefits to more nations, following intensive negotiations, as reported by the UAE’s official news agency, WAM.
Members have agreed to implement Special and Preferential Treatment for Sanitary and Phytosanitary Measures and Technical Barriers to Trade. This effort supports producers in the least developed countries, facilitating their global supply chain access, the WAM report stated.
The report added that the current measures of SPS constitute a staggering 90 percent of non-tariff trade barriers, posing a significant obstacle for smaller nations and being viewed as discriminatory. In a significant development for developing countries, ministers approved a decision responding to a 23-year-old mandate. The aim is to revamp special and differential treatment provisions for improved precision, effectiveness, and operational functionality.
Accelerated action for African LLDCs and LDCs needed to achieve sustainable development (UNECA)
Multiple crises, including the COVID-19 pandemic and the current geopolitical and global macroeconomic situation have resulted in poor economic progress and exacerbated the structural challenges of African Landlocked Least Developed Countries (LLDCs), putting them off track in meeting the Vienna Programme of Action for LLDCs (VPoA). This, according to experts meeting ahead of the March 4-5 ministerial segment of the Conference of African Ministers of Finance, Planning and Economic Development, “requires accelerated action for them to achieve sustainable development.”
Africa’s LLDCs contend with many development challenges due to their lack of direct territorial access to the sea, remoteness and distance from world markets. They face higher trade costs than their transit neighbours, limited infrastructure, undiversified economies and export markets. LLDCs fared poorly in health delivery, real GDP growth and infrastructural development.
The WTO just extended its moratorium on digital trade tariffs. Here’s why it will boost innovation and productivity (World Economic Forum)
Digital trade, from software sales to streaming movies, plays a bigger role than ever in the global economy. Its meteoric growth has renewed interest on the implications that this form of globalisation could have on the global economy, development opportunities, and jobs. A related question is how countries, especially developing economies, need to adapt their policies to the increasing digitalization of international trade.
The value of global trade in digitally delivered services reached $3.82 trillion in 2022, or 54% of total global services trade and 12% of total goods and services trade combined, and its average annual growth rate was 8.1%, outpacing both goods and other services. Trade through digital channels has several unique benefits beyond traditional gains from trade: it contributes to the digitalisation of all aspects of the economy; enables more efficient processes that boost productivity; promotes interconnectivity, communication, and hence the transmission of existing knowledge and technology as well as innovation; and fosters inclusion by reducing trade barriers for small firms and women-led businesses.
Visit tralac's WTO MC13 Resource page for more
UN Environment Assembly advances collaborative action on triple planetary crisis (UN Environment)
The sixth UN Environment Assembly (UNEA-6) concluded today in the Kenyan capital, Nairobi, with Member States delivering 15 resolutions aiming to boost multilateral efforts to address the triple planetary crisis of climate change, nature loss and pollution.
The UNEA-6 resolutions advance the work of Member States on management of metals, mineral resources, chemicals and waste, on environmental assistance and recovery in areas impacted by armed conflict, on integrated water resource management in the domestic sector, agriculture and industry to tackle water stress, on sustainable lifestyles, on rehabilitation of degraded lands and waters, and more.
The 2024 Assembly also held its first Multilateral Environmental Agreements (MEA) Day, dedicated to the international agreements addressing the most pressing environmental issues of global or regional concern, which are critical instruments of international environmental governance and international environmental law. UNEA-6 also welcomed youth to host their own environmental summit, which called for greater inter-generational equity. A Ministerial Declaration on the closing day affirmed Member States’ commitment to slow climate change, restore and protect biodiversity, create a pollution-free world and confront issues of desertification, land and soil degradation, drought and deforestation by taking effective, inclusive and sustainable multilateral actions.
Trade Drives Gender Equality and Development (IMF)
Gender equality is not only a fundamental right but an economic imperative. A considerable body of research shows that it makes economic sense for society to benefit fully from the skills and labor of the entire population, not just half of it. And it makes economic sense for men and women to receive commensurate rewards. For developing economies, the economic case for gender equality is even more compelling, for two reasons: the levels of inequality between men and women are higher, and the potential rewards from reducing the gender gap are greater.
So how can developing economies promote gender equality? International trade offers a promising path. Our research shows that trade has the potential to significantly boost women’s role in the economy, reduce inequality, and expand women’s access to skills and education. Countries that are open to international trade tend to grow faster, innovate more, improve productivity, and provide higher income and more opportunities to their people.
New Data Show Massive, Wider-than-Expected Global Gender Gap (World Bank)
The global gender gap for women in the workplace is far wider than previously thought, a groundbreaking new World Bank Group report shows. When legal differences involving violence and childcare are taken into account, women enjoy fewer than two-thirds the rights of men. No country provides equal opportunity for women—not even the wealthiest economies.
The gender gap is even wider in practice. For the first time, Women, Business and the Law assesses the gap between legal reforms and actual outcomes for women in 190 economies. The analysis reveals a shocking implementation gap. Although laws on the books imply that women enjoy roughly two-thirds the rights of men, countries on average have established less than 40% of the systems needed for full implementation.
Myanmar Eyes 2024 BRICS Currency Adoption, Joining Global Financial Shift (BNN Breaking)
This bloc, consisting of Brazil, Russia, India, China, and South Africa, has seen its influence grow with a combined effort to reduce reliance on the US dollar and enhance trade and investment among member countries. Myanmar is set to embrace the BRICS currency in 2024, aligning with global financial reforms spearheaded by the bloc’s initiatives like the New Development Bank.
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The forest sector plays a key role in socioeconomic development of Kenya and contributes to 3.6 % to the country’s GDP1 excluding environmental services. The sector supports the urban and rural population through the provision of wood fuel and other non-timber forest products and services. Currently the sector provides direct jobs for up to 50,000 and indirect jobs to approximately 600,000. The sector is largely underdeveloped against its potential that can be unlocked through commercial forestry.
At COP28 Kenya joined a coalition of 17 countries that committed to promoting the use of sustainable wood in Green Construction2. This commitment is backed by a robust policy and regulatory framework as well as a booming construction industry. In addition, Government has set an ambition to grow 15 billion trees and increase it plantation area to 750,000ha.
Ethiopia Emphasizes Significance of AfCFTA to Achieve Stronger, Inclusive Pan-African Trade Ecosystem (Ethiopian News Agency)
Addis Ababa February 29/2024 (ENA) Africa Continental Free Trade Area (AfCFTA) is significant in order to achieve a stronger and more inclusive Pan-African trade ecosystem, the Ethiopian Permanent Mission in Geneva underscored.
Ambassador Tsegab Kebebew, Permanent Representative of Ethiopia to the UN Office at Geneva delivered a Presentation on the subject of "Regional projects and dynamics with pan Africa reach” at the ambassadors' New Year reception hosted by Swiss Africa Business Circle (SABC) held on 28 Feb 2024 in Bern, Switzerland.
Nigeria: Customs Collaborates DG TAXUD EU For Efficient Export Monitoring, Trade Facilitation (Newsdiaryonline)
The Nigeria Customs Service (NC) has collaborated with the Directorate General Taxation and Customs Union (DG TAXUD) of the European Union (EU) for efficient export monitoring and trade facilitation.
During a meeting that took place at the Corporate Headquarters of NCS on February 27, 2024, the Comptroller General of Customs, Bashir Adewale Adeniyi, announced that the service is collaborating with DG TAXUD for efficiency in Export Monitoring and documentation.
With the Nigeria Customs Service as the competent authority for rules of origin, the Comptroller General assured that the Service will do all it can to facilitate the process, adding that peace will prevail if trade is permitted to flourish.
Inflation rates soar in Cameroon’s major cities, exceeding the Cemac threshold (INS) (Business in Cameroon)
Consumer price levels in nine out of the ten major cities in Cameroon exceeded the Cemac threshold of 3% in January 2024, according to reports by the national stats agency INS. Remarkably, Bamenda, the regional capital of the Northwest, despite facing attacks by separatist militias, recorded an inflation rate of just 3% in January 2024, year-on-year.
Ngaoundéré experienced the highest jump, with an inflation rate reaching 8% in January 2024 compared to the same month in 2023, making it the Cameroonian city with the most significant increase in household consumer prices. Other major cities also reported inflation rates of at least 5% over the same period: Yaoundé (5.1%); Douala (5.4%); Maroua in the Far North (5.5%); Buéa in the Southwest (5.4%); and Ebolowa in the South (5.7%).
Tanzania pushes for sustainable capital markets (Daily News)
DAR ES SALAAM: FINANCE Minister, Dr Mwigulu Nchemba has argued that promoting sustainable capital markets in the Southern Africa Development Community (SADC) region is essential for fostering responsible investment and increasing access to finance for projects and businesses that align with sustainability goals.
Dr Mwigulu therefore stated that the Committee of SADC Stock Exchanges (CoSSE) is expected to play a pivotal role in advancing sustainability by facilitating dialogue, knowledge sharing and collaboration among stock exchanges, regulators, issuers, investors and other stakeholders to integrate environmental, social and governance (ESG) principles into capital market practices and promote sustainable finance initiatives.
The minister was speaking yesterday in Dar es Salaam at the launch of a workshop on development of sustainable capital markets in the SADC region.
Ethiopian Airlines Unveils $55 Million E-Commerce Hub, Boosting Africa's Online Trade (BNN Breaking)
Addis Ababa has become the focal point of a significant leap in e-commerce logistics with Ethiopian Airlines' inauguration of a new $55 million e-commerce logistics hub. Aimed at enhancing online shopping experiences across Africa, this move signifies a major step forward in the continent's digital commerce landscape. The hub, constructed by China National Aero-Technology International Engineering Cooperation, sprawls over 15,000 square meters and boasts the capacity to manage 150,000 tonnes of goods annually.
Mesfin Tasew, the Chief Executive Officer of Ethiopian Airlines, emphasized the airline's commitment to adopting cutting-edge technologies and improving service delivery. The project, which took two years to complete, represents a significant investment in the future of African e-commerce. The airline's collaboration with Chinese construction and technology firms, including giants like Alibaba, underlines a strategic approach to capitalize on the burgeoning e-commerce market.
The Council of Ministers of the Southern African Development Community (SADC) will meet on 10 and 11 March 2024 in Luanda, Republic of Angola.
His Excellency Ambassador Téte António, Minister of External Relations of the Republic of Angola will host the meeting in his capacity as the current Chairperson of the SADC Council of Ministers.
The Council of Ministers oversees the function and development of SADC and ensures that policies and decisions are implemented accordingly. The Council consists of Ministers from each of the 16 SADC Member States; usually from the Ministries responsible for Foreign Affairs and International Relations, Economic Planning Finance or Trade, and meets twice a year in March, and August.
SADC Secretariat supporting SMEs in the SADC EPA region to export to the European Union (EU) market (SADC)
The Southern Africa Development Community (SADC) Secretariat through the EPA Unit has embarked on a series of national capacity-building and awareness-raising workshops for the SADC Economic Partnership Agreement (EPA) States on market requirements for exporting to the EU market . The SADC EPA states covered include Botswana, Lesotho, Mozambique, Namibia, and Eswatini. The first workshop was held from 11 - 13 December 2023 in Maputo, Mozambique. Participants from both private and public sectors were taken through simulation exercises on export requirements for EU market. The private sector was represented by the Chamber of Commerce and Industry, the Commodity Exchange and the Confederation of Economic Associations.
Other workshops on EU market requirements for Gaborone-Botswana, Maseru-Lesotho, Windhoek-Namibia and Mbabane-Eswatini are ongoing. These workshops are targeted to the private sector within the SADC EPA region that are exporting or have the potential to export to the EU market. The aim is to support them in understanding the requirements of the EU-SADC EPA.
This initiative is a follow-up to the work that the Secretariat has done, where booklets on EU market requirements for five (5) sectors of export potential to the EU were produced. The sectors include dried spices, essential oils, herbal teas, vegetable oils, dried fruits and nuts.
The SADC Business Council (SADC BC) held the First Southern African Industrialisation Forum from 26th to 27th February 2024 at the l in Johannesburg, Republic of South Africa. The SADC Business Council is a regional apex body for the SADC private sector. It represents national and regional business associations from SADC Member States. The SADC BC is the prime public sector partner forging the SADC development and integration agenda.
The Southern African Development Community (SADC) Deputy Executive Secretary for Regional Integration Ms Angele Makombo N’Tumba delivered the opening remarks and hailed SADC Business Council for organising the forum for business leaders to discuss industrial priorities and investment opportunities in the region.
Ms. Makombo N’Tumba said the objectives of the forum are well aligned to the SADC regional industrialisation and development agenda, encapsulated in the SADC Vision 2050 and the Regional Indicative Strategic Development Plan (RISDP 2020-2030), which are the strategic documents for SADC regional integration and development.
The Board of Directors of the African Development Bank Group has approved a $150 million Trade Finance Unfunded Risk Participation Agreement facility between the African Development Bank and Trade & Development Bank (TDB). The agreement is expected to boost intra-Africa trade, promote regional integration and contribute to the reduction of the trade finance gap in Africa, in line with the aspirations of the African Continental Free Trade Area (AfCFTA).
African Development Bank will provide guarantee cover of 50% and up to 75% for transactions in low-income countries and transition states on a risk share basis with TDB to a number of qualifying local and regional banks in the Common Market for Eastern and Southern Africa (COMESA) region, which are active in the trade finance sector. The facility is expected to support about $1.8 billion of trade over the next three years.
“Supporting trade in Africa is a key priority for the AfDB. Trade finance is an important driver of economic growth and is critical for cross-border trade particularly in emerging markets,” said Nwabufo Nnenna, the group’s Director General for the Eastern Africa region. “We are delighted to work with TDB, a strong partner with extensive knowledge and network in Africa, on a shared ambition to support the region’s Trade.”
AfDB's Akinwumi Adesina Targets Youth Unemployment, Poverty to Curb Insecurity, Migration in Africa (BNN Breaking)
During a recent diplomatic luncheon in Abidjan, Côte d'Ivoire, Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), highlighted the critical issues of youth unemployment and poverty as primary drivers of insecurity and migration across the African continent. Stressing the importance of creating opportunities within Africa, Adesina unveiled the bank's ambitious Jobs for Youth in Africa strategy, aiming to develop 25 million jobs and skill 50 million youths.
With Africa's demographic asset of 477 million young people under the age of 35, the AfDB is taking significant steps to prevent this potential from becoming a "global externality." The bank's Jobs for Youth in Africa strategy has already shown promising results, with 12 million jobs created, three million directly and nine million indirectly. Initiatives such as Technical and Vocational Training, Computer Coding for Employment, and the Enable Youth programme in agriculture are at the forefront of this employment drive, aiming to harness the continent's vast potential for growth and innovation.
UNECA Urges African Nations to Tackle Climate Change, Boost Green Economies (BNN Breaking)
The United Nations Economic Commission for Africa (UNECA) has put forth a strong call for African countries to unite in their efforts to mitigate the impacts of climate change and to steer towards the development of green economies. This clarion call was made during the UNECA's Conference of Ministers of Finance, Planning and Economic Development (COM2024), held in Victoria Falls, Zimbabwe, from February 28 to March 5, under the theme "Financing the Transition to Inclusive Green Economies in Africa: Imperatives, opportunities, and policy options".
Antonio Pedro, the deputy executive secretary of UNECA, highlighted the disproportionate challenges that climate change poses to the African continent, including severe droughts, floods, and unexpected storms. These natural disasters not only precipitate humanitarian crises but also exacerbate economic vulnerabilities across the continent. Pedro underscored the urgent need for Africa to adopt sustainable transitions and implement long-term structural changes to combat these environmental threats effectively.
EAC Eyes New Trade Frontiers: UK, UAE, Among Others, Following EPA Setback (BNN Breaking)
Following the breakdown of the Economic Partnership Agreement (EPA) with the European Union (EU), the East African Community (EAC) is turning its gaze towards new horizons. At least seven nations, including the United Kingdom, the United Arab Emirates (UAE), Singapore, and Pakistan, have expressed interest in forging free trade agreements with the EAC, signaling a potential shift in the bloc's trade dynamics and partnerships.
In the wake of the unfruitful negotiations with the EU, the EAC is keen on diversifying its trade relationships to bolster its economic prospects. The 43rd Meeting of the Sectoral Council of Trade, Industry, Finance, and Investment marked a significant milestone, with the EAC ministers green-lighting negotiations for Free Trade Agreements (FTAs) with the UK, UAE, Pakistan, and Singapore. This move not only demonstrates the EAC's proactive stance in expanding its market reach but also its adaptability in the face of geopolitical and economic shifts. The council's directive to initiate dialogues with these countries by July 30, 2024, underscores the urgency and priority accorded to these negotiations.
EU lawmakers endorse economic partnership agreement with Kenya (The East African)
Kenya has inched closer to concluding a preferential trade deal with European Union (EU), preserving a long-term tax-free access of exports to the 27 countries in the bloc while gradually opening up her market for duty-free imports and investments from Europe.
The European Parliament on Thursday endorsed the pact, paving the way for heads of State and government to give final approval and complete the ratification process on the EU side.
Kenyan lawmakers have also to debate and approve the document for it to become enforceable.
EU gives EUR 1 million to support trade know-how in developing economies and LDCs (WTO)
The European Union is contributing EUR 1 million (about CHF 950,000) over the period 2024-2025 to finance training programmes for government officials from developing economies, including least-developed countries (LDCs). The contribution to the WTO Global Trust Fund will help developing economies and LDCs deepen their expertise on WTO issues and strengthen their skillset to effectively implement trade rules at the WTO.
The Global Trust Fund finances around 280 activities a year, mostly tailor-made training activities delivered at national and regional level, covering various trade-related areas including agriculture, services and trade facilitation. Close to 2,800 activities have been organised under this fund over more than 20 years.
The European Commission's Executive Vice-President Valdis Dombrovskis, said during the 13th WTO Ministerial Conference held from 26 to 29 February in Abu Dhabi, United Arab Emirates: "The EU remains strongly committed to the WTO and to further integrating developing countries — especially least-developed countries — into the multilateral trading system. We are pleased to continue supporting their economic development through the WTO. We believe our financial contribution is particularly timely in view of the current need for enhancing multilateral trade governance."
India pitches re-examination of customs duties moratorium on e-commerce (The Economic Times, Indian Times)
India on Thursday pitched for a re-examination of the implications of the customs duties moratorium on e-commerce for developing and least developed member nations of the World Trade Organization (WTO) amid attempts by the developed countries to extend the moratorium beyond March 31.
The issue came up for discussion during a session of a work programme on e-commerce at the WTO's 13th Ministerial Conference, which entered its last day on Thursday. India is not in favour of extending the moratorium as it is causing tariff revenue losses of an estimated $10 billion to the developing countries every year. For India, the losses could be about $500 million every year. The moratorium can't be extended in the absence of a consensus decision. Countries can choose not to raise duties on e-commerce transmissions, said officials.
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South Africa: Trade statistics for January 2024 (South African Revenue Service)
Today, the South African Revenue Service (SARS) releases trade statistics for January 2024, recording a preliminary trade balance deficit of R9.4 billion. The deficit is attributable to exports of R144.3 billion and imports of R153.7 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN). Export flows decreased in January, driven by Passenger and Goods Vehicles as well as Coal. Value of imports increased on the back of higher import flows of Original Equipment Components, Telephone Sets, and Wheat and Meslin.
The year-to-date (01 January to 31 January 2024) preliminary trade balance deficit of R9.4 billion was an improvement from the R24.4 billion trade balance deficit for the comparable period in 2023. On a year-on-year basis, export flows for January 2024 were 4.5% higher compared to the R138.0 billion recorded in January 2023, whilst import flows were 5.4% lower having decreased from R162.4 billion in January 2023 to R153.7 billion in the current period.
Speech by Deputy Minister Alvin Botes on the Second Free State Investment Forum, 27 February 2024 (DIRCO)
South Africa executes its foreign policy within the rubric of four concentric circles of Pan-Africanism, Global Solidarity, Deepening Cooperation with the Industrialised North and Transformation of Global governance institutions to deepen multilateralism. We are a substantive Pan Africanist state and we have championed the implementation of the African Continental Free Trade Area (AfCFTA), which is one of the flagship projects of Agenda 2063: The Africa We Want.
The Assembly of the Heads of State and Government of the AU that met on 17 and 18 February 2024, in Addis Ababa congratulated South Africa for launching the first shipment under the AfCFTA regime on 31 January 2024. The first shipment went to Ghana and Kenya. South Africa joins other 8 countries that have started trading under the Guided Trade Initiative (GTI) of the AfCFTA.
We should further welcome the Tariff Offer made by SACU countries comprising South Africa, Lesotho, Eswatini, Namibia and Botswana on 11 February 2023. This is a milestone development in the effective implementation of the AfCFTA, paving the way for South Africa and its neighbours to reduce tariffs by up to 90%, thereby facilitating the implementation of the AfCFTA.
Rubber actors defend ban on unprocessed rubber export (The New Dawn Liberia)
The Rubber Planters Association of Liberia (RPAL) says the Government of Liberia is in no error in banning the export of unprocessed rubber. The group which is a major rubber sector actor has unanimously declared its support of the ban, adding that exporting unprocessed rubber out of Liberia denies the government of generating needful taxes and takes jobs away from local employees.
Liberia currently has at least four companies that are engaged in exporting processed rubber. They include Jeety Rubber Factory, Firestone Rubber Plantation, Liberia Agriculture Company (LAC), and the Lee Group. These companies employed thousands of Liberians at their factories and can only maintain their workforce and meet their production targets if the ban on unprocessed rubber remained in place.
The Gambia upgrades customs operations and boosts revenue from trade (UNCTAD)
The Gambia, mainland Africa’s smallest country, saw a 23% increase in customs revenue in 2023, one year after rolling out the latest version of UNCTAD’s Automated System for Customs Data software (ASYCUDAWorld). The Gambia Revenue Authority reported record monthly revenue collections in March 2023, reaching 1.5 billion Gambian Dalasi (approximately $22.1 million, using the current exchange rate), a figure that was exceeded in July with D1.6 billion (about $23.6 million). By the year’s end, customs revenue hit D15.6 billion (about $230 million), surpassing the government’s target for 2023 by 4%.
Announcing the results, Gambia Revenue Authority Commissioner General Yankuba Darboe, highlighted the impact of reforms and strategies to improve efficiency and transparency and optimize revenue collection, saying UNCTAD’s ASYCUDAWorld system’s contribution was “immense”. “The immediate impact of the joint effort between UNCTAD and the Gambia Revenue Authority in financial terms is impressive,” said Shamika N. Sirimanne, UNCTAD’s director of technology and logistics.
The Fund for Export Development in Africa (FEDA), a subsidiary of the African Export-Import Bank (Afreximbank) dedicated to fostering development impact, is pleased to announce the Arab Republic of Egypt’s accession to its Establishment Agreement. With Egypt’s longstanding position as a founding shareholder and the host country of Afreximbank’s headquarters, this recent development underscores Egypt’s commitment to supporting Afreximbank and FEDA’s mission of catalyzing intra-African trade and export development.
The inclusion of Egypt in FEDA’s membership base significantly expands the reach of FEDA’s interventions with its primary objectives of providing sustainable capital to African economies. FEDA’s intervention places great emphasis on industrialization, intra-African trade, and the development of value-added exports.
The SADC Business Council (SADC BC) held the First Southern African Industrialisation Forum from 26th to 27th February 2024 at the l in Johannesburg, Republic of South Africa. The Southern African Development Community (SADC) Deputy Executive Secretary for Regional Integration Ms Angele Makombo N’Tumba delivered the opening remarks. She said the objectives of the forum are well aligned to the SADC regional industrialisation and development agenda, encapsulated in the SADC Vision 2050 and the Regional Indicative Strategic Development Plan (RISDP 2020-2030), which are the strategic documents for SADC regional integration and development.
Mr. Ousmane Fall, Director of Non-Sovereign Operations and Private Sector at the African Development Bank, reiterated the Bank’s commitment to scale up its support to the regional industrialisation agenda and assist Member States in recovering from the recent economic shocks as they strengthen their industrial development. He reckoned that the Bank’s regional integration strategy for Southern Africa identifies two mutually reinforcing priority areas: infrastructure connectivity and market integration and industrialisation.
Only goods that come to the Port of Lomé by sea and declared as transit bound for Burkina Faso, Mali, or Niger will benefit from the suspension of the statistical levy. The Togolese Revenue Office (OTR) disclosed the news on February 19, 2024. This levy, applied to imports and exports, finances the country’s statistical activities, including data collection, processing, and dissemination of economic and trade information. The statistical levy for Burkina Faso, Mali, and Niger was initially set at 2% and then reduced to 1% under the ECOWAS Common External Tariff regime.
The new announcement aims to deter economic operators who unload their goods at neighboring ports and later pass them through Togo to reach the Ouaga-Niamey-Bamako corridor. This is an important move for Togo, especially since the closure of the border between Benin and Niger due to ECOWAS sanctions against the latter. Goods destined for Niger are now forced to pass through Ouaga, of which Lomé is the natural maritime gateway.
ECOWAS Laments Low Trade Volume Among Member States (Arise News)
The President of the Economic Community of West African States (ECOWAS) Commission, Dr. Alieu Touray has decried that the current political situations within the subregion has overshadowed the efforts of the regional bloc at addressing the needs of citizens of the community. He said this, even as he lamented the low trade volume amongst member states, which hovers in the region of 12%.
Touray also said the trade volume within the larger African continent was not also impressive as it stands under 20%.
He said with the strategies and policies in place to encourage trading and movement of goods and people within the subregion, it is disheartening that trade amongst member states is abysmally low, noting that: “At the moment, our intra community trade stands around 12%. On the whole in Africa, intra continental trade is under 20% which is extremely low.” He said: “If you look at developed countries, countries that are sufficiently integrated or regions that are sufficiently reintegrated, intra continental trade alone is around 60 to 70%. “ So we have a long way to go. Very long way to go and this is why it is important that we open our markets for our own produce, our own manufactured items.”
WTO 13th Ministerial Conference extended by one day to facilitate outcomes (WTO)
Following the consultations by WTO Director-General Ngozi Okonjo-Iweala with the MC13 Chair, Dr Thani bin Ahmed Al Zeyoudi, and the Minister Facilitators, delegations were informed that MC13 will be extended, with the closing session scheduled to begin at 2pm Abu Dhabi time. At the meeting of Heads of Delegation (HoDs) on 28 February, DG Okonjo-Iweala called on members to go the extra mile to find convergence on the various negotiations at the ministerial gathering and to be mindful that time is running out to conclude meaningful agreements. The 13th Ministerial Conference was initially scheduled to close today (29 February) at 8pm Abu Dhabi time.
Indian Team Boycotts Thai Representatives at WTO Talks (The Times of India)
A comment by Thailand’s ambassador to WTO Pimchanok Vonkorpon Pitfield, accusing India of using ‘subsidised’ rice procured for the public distribution system for capturing the export market, has created a diplomatic storm with govt lodging a strong protest and Indian negotiators refusing to participate in some deliberations in groups where a representative from the southeast Asian country is present.
The Thai ambassador’s comment on Tuesday during a consultation meeting was cheered by some representatives of rich nations, angering the Indian delegation here. Thailand is seen to be fronting for the US, European Union, Canada and Australia, among others, which have blocked a permanent solution to public stockholding for over a decade.
Union leader Sarwan Singh Pandher stated: “In recent years, the share of Indian rice in the global market has gone up and the recent export curbs have angered western nations. Developed countries have been trying to paint a picture that India was distorting global trade by selling subsidised foodgrain in the international market, which was not the case.”
WTO enforces new rule for simplifying services trade, India stays out (Mint)
These regulations, which apply on a Most Favored Nation (MFN) basis, aim to make authorization processes more transparent and accessible, with commitments to gender equality. However, only 72 out of the WTO’s 164 members are a party to the agreement. India and South Africa were among countries that did not sign this agreement.
The regulations are a response to the bureaucratic challenges faced by businesses in cross-border service trade, aiming to simplify procedures and promote equal opportunities for service suppliers worldwide.
“While details of the Agreement are still awaited, the new agreement looks like plurilateral agreement, where not everyone is a party. India and South Africa have not signed this Agreement. WTO, being the top multilateral trade body should rather focus on core issues of interest to all members and not of a few,” said Ajay Srivastava, the founder of Global Trade Research Initiative (GTRI).
India, South Africa block China-led investment facilitation pact (The Economic Times)
India and South Africa on Wednesday blocked a China-led initiative on investment facilitation at the WTO, in a move that will make it unlikely for the proposed Investment Facilitation Development to be part of the WTO agenda and outcome. Officials said the two nations protested and filed a formal objection as China brought in the issue at a session on development. Around 52 countries made statements at the session and the proponents have sought separate deliberative sessions on the issue.
India and South Africa’s objection was on three grounds - exclusive consensus is needed to bring in any issue on the agenda, it’s debatable if the proposed pact is a trade agreement and it can’t be called an agreement since the signatories haven’t ratified. The group of 123 members wants to bring the proposal through Annex-4 of the WTO under which the proposal would be binding on only the signatory members and not on those who are opposed to it.
“The delegations presenting this statement state that no exclusive consensus exists to add the proposed Agreement as an Annex 4 Agreement. We underscore that given the lack of exclusive consensus, this is not a matter for the MC13 agenda,” India and South Africa said.
India pitches re-examination of customs duties moratorium on e-commerce (The Economic Times)
India on Thursday pitched for a re-examination of the implications of the customs duties moratorium on e-commerce for developing and least developed member nations of the World Trade Organization (WTO) amid attempts by the developed countries to extend the moratorium beyond March 31.
The issue came up for discussion during a session of a work programme on e-commerce at the WTO's 13th Ministerial Conference, which entered its last day on Thursday. India is not in favour of extending the moratorium as it is causing tariff revenue losses of an estimated $10 billion to the developing countries every year. For India, the losses could be about $500 million every year. The moratorium can't be extended in the absence of a consensus decision. Countries can choose not to raise duties on e-commerce transmissions, said officials.
India said this emerging segment of the global economy holds the promise for economic development and prosperity for developing countries, including the least developed countries.
Why developing countries must unite to protect the WTO’s dispute settlement system (The Conversation)
Summit of the Future: Advancing African Perspectives for a Networked and Inclusive Multilateralism (International Peace Institute)
In September 2024, the UN will hold the Summit of the Future in New York, bringing together world leaders to “forge a new international consensus” on how to “deliver a better present and safeguard the future.” One of the outcomes of the summit will be a Pact for the Future covering five key areas: sustainable development and financing for development; international peace and security; science, technology and innovation, and digital cooperation; youth and future generations; and transforming global governance. While the intergovernmental negotiations on the Pact for the Future are meant to be consultative, they could include a broader cross-section of perspectives, including from the African continent.
Commonwealth, African Union renew call for reform of Global Financial System (The Commonwealth)
The Commonwealth Secretariat and the African Union have renewed their call for a reform of the global financial architecture to improve Africa’s access to international finance.
During a Presidential Dialogue in the margins of the 37th Ordinary Session of the Assembly of the African Union, leaders highlighted the urgent need to rectify the existing quota system, which often favours wealthier nations, leaving Africa with disproportionately limited resources and influence. The meeting took place in Addis Ababa from 16-20, February.
Speaking from the Ethiopian capital, Commonwealth Secretary-General, The Rt Hon Patricia Scotland KC, said: “The global financial architecture lacks balance and fails to consider the vulnerability of many African economies in climate adaptation. As far back as 2018, the Commonwealth said that it’s not fit for purpose. “If you look at what is happening in so many of our countries when it comes to climate change, you can see that the financial structure does not consider Africa’s vulnerability. It simply doesn’t work, and it cannot be fair.
UNCTAD Report Reveals Dual Trend in Global OFDI Policies Amid Rising Sustainability, Security Concerns (BNN Breaking)
The latest Investment Policy Monitor by UNCTAD has cast a spotlight on the evolving landscape of outward foreign direct investment (OFDI) policies worldwide. As nations grapple with balancing economic growth with sustainability and national security, the report underscores a dual trend of both facilitating and restricting OFDI.
The Monitor’s findings indicate that while there is an increasing inclination towards facilitating OFDI for sustainable development, restrictive measures are also on the rise. This reflects a global effort to harness the benefits of OFDI, such as economic diversification and access to new markets, while mitigating potential risks to national security and sustainable development goals (SDGs).
Particularly, developed countries are leading the charge in integrating sustainability criteria into their OFDI promotion policies, aligning foreign investments with the SDGs. However, the engagement in promoting OFDI towards developing nations remains limited, highlighting a gap in leveraging foreign investment as a tool for international development.
G20 ministerial meeting in Rio: reaching out to the “Global South” (EEAS)
Brazil took the Presidency of the G20 last December. It is the next of a series of emerging economy Presidencies, starting with Indonesia in 2022, India in 2023, and to be followed by South Africa in 2025. The current Brazilian government wants to show that “Brazil is back” on the multilateral scene after the Bolsonaro era and enhance the role of the “Global South”. G20 meetings are always a critical moment in international relations. G20 members represent indeed more than 80% of the world’s GDP and they can play a crucial role in steering the world away from a global confrontation.
The G20 is a useful framework to exchange views, but not really a decision-making body. Nevertheless, a successful Brazilian G20 Presidency would be particularly important to show that, despite political differences, this forum can help make progress on critical global issues such as social inclusion, the green transition and the reform of the multilateral governance.
The G20 Foreign Ministers meeting in Rio de Janeiro was also the first such meeting with the African Union as a permanent G20 member. This matters greatly, because in 25 years from now, one out of four people in the world will be living in Africa.
At UNEA-6, Heads of State call for greater cooperation on the environment (UN Environment)
Heads of State and Government, Ministers, senior UN officials, members of civil society and the private sector gathered today at the UN Environment Programme (UNEP) headquarters in Nairobi for the High-Level Segment of the sixth session of the UN Environment Assembly (UNEA-6). World leaders expressed determination to accelerate multilateral action on the triple planetary crisis of climate change, nature loss and pollution.
“UNEA-6 is the first intergovernmental global meeting after COP28. This places upon this Assembly a tremendous responsibility to expeditiously deliver on its agenda in full, and thereby demonstrate the power of international cooperation and effective multilateralism,” President Ruto told delegates. “This is a challenging task, which is complicated by the fact that nations of the world are all grappling with a dynamic complex of interconnected and multifaceted threats, risks, uncertainties and shocks, ranging from sluggish economic growth, conflict and wars, and geopolitical fragmentation.”
“We can push back against the triple planetary crisis if we show unity of purpose, at this Assembly and beyond. Purpose to shun fossil fuels and look to renewable energy sources. Purpose to conserve and restore the natural world and our lands, which give us life. Purpose to keep harmful chemicals, pollution and waste out of our ecosystems and yes, out of our bodies,” said Inger Andersen, Executive Director of UNEP.
See also: World must move beyond waste era and turn rubbish into resource: UN Report (UN Environment)
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South Africa celebrates first AfCFTA export to Ghana amidst global trade disruptions (Bizcommunity)
The opportunities the African Continental Free Trade Area (AfCFTA) agreement creates for the development of intra-African trade are becoming apparent, according to Philip Myburgh, executive head of trade and Africa-China, business and commercial clients at the Standard Bank Group, amid disruptions to traditional trade routes, unpredictable shipping times, and skyrocketing freight tariffs caused by the conflict in the Red Sea region.
“Last month, South Africa exported its first shipment of goods to Ghana under the AfCFTA agreement. The goods shipped were forged grinding balls and high chrome grinding media products supplied to the platinum, gold, ferrochrome, base metal, power generation, and cement industries.” However, several other markets remain to be explored,” says Myburgh.
“Two features make Ghana a strong trading partner: its location on the west coast and its two deepwater ports. Takoradi and Tema offer logistical advantages to seaborne traffic from South Africa. And Ghana, often called the ‘Gateway to West Africa,’ offers easy access not only to Ghanaian markets but also to other countries in the region.”
dtic, IFC pact to boost investment, job creation (SAnews)
The Department of Trade, Industry and Competition (the dtic) and the International Finance Cooperation (IFC), part of the World Bank Group, have signed the 2nd Phase Cooperation Agreement aimed at stimulating investment and job creation. The agreement outlines areas of co-operation in the form of technical advisory services.
Speaking at the signing ceremony held in Pretoria, IFC Regional Director: Southern Africa, Claudia Conceicao, said the agreement has resulted in real outcomes, including investments and job creation, and not just changes to laws and regulations. Conceicao said the new phase of the Cooperation Agreement will further support South Africa’s initiatives, particularly in the renewable energy sector, creating a more conducive environment for private sector investment and contributing to sustainable economic growth and development.
Zambia borders get cutting-edge baggage scanners (COMESA)
In a significant milestone aimed at bolstering both border security and trade facilitation, a flag-off ceremony marked the commencement of the deployment of cutting-edge baggage scanners as part of the Zambia Borders Post Upgrade project. The state-of-the-art equipment, valued at Euros 210,000, is poised to address gaps in detecting illegal items at the borders and ensure transparent cross-border movements.
The advanced baggage scanners, officially handed over to the Zambia Revenue Authority, are equipped with state-of-the-art detection capabilities. This initiative, funded by the European Development Fund (EDF) Trade Facilitation Programme, has allocated Euros six million to Zambia for the upgrading of three pivotal border posts – Nakonde, Mwami, and Chirundu.
Uganda trade surplus with DRC hits $53m, its highest in East Africa (The East African)
Uganda registered the highest trade surplus with the Democratic Republic of Congo (DRC) amounting to $53.07 million (Ush208.9 billion) in January, according to the Ministry of Finance Performance of the Economy report. The report, which highlights the monthly performance of different sectors of the economy, noted that DR Congo received more exports from Uganda than any other East Africa Community (EAC) member state, followed by South Sudan at $41.68 million (Ush164 billion), Rwanda $23.1 million (Ush90.9 billion) and Burundi at $5.25 million (Ush20.6 billion).
The performance saw Uganda’s exports to the EAC partner states grow to $231.47 million while imports stood at $209.17 million.
The EAC remained the top destination of Uganda’s exports, accounting for 37.6 percent of the total market share, followed by the Middle East, and European Union. However, Uganda trades at a deficit with Asia, the rest of Africa, and Europe of $267.64 million, $118.15 million, and $6.64 million, respectively.
Rwanda’s Economic Performance Strengthened in 2023 Despite Continued Challenges (World Bank)
Rwanda’s economy grew at 7.6% in the first three quarters of 2023 despite a challenging global environment and the recent floods that destroyed agricultural produce and infrastructure in April-May 2023. This is according to the 22nd edition of the Rwanda Economic Update (REU): Mobilizing Domestic Savings to Boost the Private Sector in Rwanda. The report adds that the services sector, sustained domestic demand, and the rebound of the industrial sector, contributed to the robust growth and the positive economic trajectory.
The report, whose special focus is on the private sector, underscores the critical link between private sector investment growth and domestic savings capacity, which is presently limited. Despite notable achievements in savings mobilization, Rwanda’s savings rates lag other East African countries, impacting financial resources for businesses, especially small and medium-sized enterprises.
Climate Action in Ethiopia: Acting Now to Build Resilience and Leverage Opportunities (World Bank)
A new World Bank report released today finds that annual average losses to gross domestic product (GDP) are expected to range between 1-1.5% of GDP and to rise to 5% by the 2040s, potentially pushing millions of Ethiopians into poverty. The new Country Climate and Development Reports (CCDR) for Ethiopia sounds the alarm regarding the increasing impact of climate change that are threatening Ethiopia’s development prospects. The drought of recent years–the most severe in 40 years–has been devastating for people in the arid pastoral areas. Simultaneously, flooding has damaged infrastructure and disrupted livelihoods in other parts of the country.
“Merging structural reforms with adaptation strategies is pivotal because it can substantially reduce expenses arising from climatic disasters such as droughts and floods, and can help Ethiopia harness opportunities, especially in agriculture” said Ousmane Dione, the World Bank Country Director for Eritrea, Ethiopia, South Sudan and Sudan. “Although formulating policies that account for the various levels of geographic vulnerability to climate change is key, it is equally important to encourage collaboration with regional governments in order to develop tailored solutions that effectively address their specific challenges,” he added.
Egypt’s Pivot Towards Sub-Saharan Africa And Strengthening Economic Ties (Forbes Africa)
A notable shift seems to be taking place in Egypt’s economic strategy in a new era of collaboration with several regions in sub-Saharan Africa (SSA). And the country’s banks such as CIB (Commercial International Bank) are playing a part in this transformative journey.
“Kenya made sense. East Africa is close to Egypt, the language is similar, and Kenya is the gateway. The Kenyan market is one of the most advanced digitally and digital is the perfect way to, with a controlled investment, grow a large footprint quickly,” says the bank’s Managing Director Hussein Majid Abaza.
The introduction of CIB Kenya could herald an era in which Egypt is seeking to foster trade partnerships. The bank’s niche lies in facilitating exports and it will seek to grow business links between the two countries such as with tea, where Egypt is the second-largest market for Kenyan tea exports.
Trade liberalization initiatives and investment trade missions have underscored Egypt’s commitment to opening new markets on the continent. The country’s trade dynamics seem to show its resilience and adaptability, with the country emerging as a leading exporter to COMESA countries in 2022, reaching $3.4 billion. “The continent is the right place to be; it is where growth is, and where growing populations are,” says Abaza.
Brazil prepares to export poultry meat to Egypt (Poultry World)
The announcement was made during a visit of Brazilian President Luiz Inácio Lula da Silva to Egyptian President Abdel Fattah al-Sisi in Cairo. The Egyptian government recognised the equivalence of the Brazilian inspection system and elevated Brazil to the ‘pre-listing’ category for exporting animal proteins. The measure benefits at least 30 slaughterhouses that were waiting for this authorisation to ship products for more than 4 years.
Before this agreement, the renewal of the license of Brazilian establishments for export required in-person audits by Egyptian authorities, according to the Ministry of Agriculture and Livestock (Mapa).T he procedure not only implied high costs for Brazilian exporters, but also overloaded Mapa’s federal agricultural tax auditors and limited the number of establishments authorised to export to Egypt.
Nigeria gets 60% Afreximbank energy sector funding - Oramah (Daily Nigerian)
The African Export-Import Bank, Afreximbank, says Nigeria is among the largest beneficiaries accounting for about 60 per cent of its US$30 billion funding of the energy sector in Africa. The Afreximbank said it has been able to make modest contributions in the oil and gas sector because the bank was predominantly African in ownership and control. Prof. Benedict Oramah, President of the African Export-Import Bank, said this on Wednesday at the ongoing 7th Nigeria International Energy Summit (NIES 2024) in Abuja.
EAC member states urged to boost intra-trade initiatives (The Star)
East African Community member states have been urged to adopt initiatives that promote intra-trade. East African Community Principal Secretary Abdi Dubat said the region’s economies and livelihoods of citizens are predominantly dependent on agriculture. The agricultural sector accounts for 25 per cent to 40 per cent of the gross domestic product of EAC partner states (Kenya, Uganda, Tanzania, Rwanda, Burundi and the Republic of South Sudan).
Kenya’s trade with the East African Community’s partner states increased by 8.8 per cent in 2022, from $1.65 billion in 2021 to $1.79 billion. This was captured in the EAC Trade and Investment Report 2022. It was the highest value compared to trade values between Kenya and other regional blocs.
By 2021, the largest export market for Kenyan products within the EAC was 30 per cent to Uganda, 15 per cent to Tanzania, 10 per cent to Rwanda and eight per cent to the Democratic Republic of Congo. However, Dubat said there are still challenges that face intra-trade within the EAC community. They include technological constraints, market access barriers, non-tariff barriers and poor market linkages. Dubat said most smallholder producers are unable to meet the stringent market requirements due to low production and low quality of produce.
South Africa Could Slash R89.9 Billion SACU Bill by Renegotiating Revenue Model (BNN)
South Africa stands on the brink of potentially saving R89.9 billion in the forthcoming year by advocating for a revised revenue-sharing formula within the Southern African Customs Union (SACU). This revelation emerged from the National Treasury’s comprehensive Budget Review following the Finance Minister’s pivotal budget address, which underscored the critical need for a fairer financial arrangement reflective of South Africa’s economic stature and contributions within SACU.
The financial implications of the existing revenue-sharing model are substantial, with South Africa remitting R79.8 billion to SACU in the 2023/24 financial year, a figure projected to escalate to R89.9 billion the following year. This substantial outlay underscores the urgency for South Africa to renegotiate the terms of the agreement, aiming for a distribution mechanism that more accurately reflects its economic input and the volume of trade it facilitates within the union.
Renegotiating the SACU revenue-sharing model presents a pragmatic avenue for South Africa to substantially reduce its financial contributions, aligning them more closely with its economic prowess and pivotal role in regional trade. A recalibrated model could ensure that contributions are proportionate to each member’s economic activities, thereby fostering a more balanced and equitable economic environment within SACU. Such a renegotiation would not only bolster South Africa’s fiscal position but also set a precedent for fair economic partnerships based on mutual respect and equitable benefit.
SADC Secretariat supporting SMEs in the SADC EPA region to export to the European Union (EU) market (SADC)
The Southern Africa Development Community (SADC) Secretariat through the EPA Unit has embarked on a series of national capacity-building and awareness-raising workshops for the SADC Economic Partnership Agreement (EPA) States on market requirements for exporting to the EU market. These capacity building workshops are organised through the SADC Trade Facilitation Programme (TFP) which is supported by the EU under the 11th European Development Fund (EDF). The Programme is implemented over a five-year period (2019-2024) with a budget of €15m (US$16.45m).
SADC shares its economic priorities to EU in the context of the AfCFTA (SADC)
Ms. Angele Makombo N’tumba, the Deputy Executive Secretary Responsible for Regional Integration for the Southern African Development Community (SADC) on 22 February 2024 shared the economic opportunities available in the SADC region to the European Union (EU) in the context of the African Continental Free Trade Area (AfCFTA) during the annual EU Africa Regional Trade Seminar.
The EU Africa Trade Seminar was held in a hybrid format at the EU delegation offices in Gaborone, Botswana, with other participants taking part from the European Commission headquarters in Brussels, Belgium. The seminar was aimed at assessing the future trade policy direction of the EU with Africa, considering key factors such as the AfCFTA, the climate and food crisis, the growing significance of critical raw materials in EU-Africa relations, the impact of the EU Green Deal policy, the requirement for infrastructure value chains and connectivity for the continent’s development, and the evolution of economic partnership agreements in Africa.
Ms. Makombo N’tumba said the EU accounts for 28% of Africa’s total trade and plays a crucial role in accelerating trade and regional economic integration. She emphasised that the AfCFTA serves as a catalyst for industrialisation and integration within the SADC region, and holds the key to unlocking economic potential for Africa, offering a pathway to unleash the continent full capabilities and drive transformative growth.
Aviation experts push for a Model Bilateral Air Services Agreement (COMESA)
Aviation officials from the Eastern Africa-Southern Africa and Indian Ocean region are making steady progress in reviewing and having a model Bilateral Air Services Agreement (BASA) that conforms with the provisions of the Yamoussoukro Decision of 1999. Once fully adopted and implemented, the model BASA will clear the way for a single African Air Transport Market which will boost the sector.
Experts have long called for a Single African Air Transport Market contending that it would strengthen intra-regional connectivity between the capital cities of African countries. A single unified air transport market would be an impetus to the continent’s economic integration and growth agenda.
“BASA is one of the fundamental means of ensuring air transport interconnectivity between States and the current exercise is geared towards streamlining the instrument to conform with the provisions of the YD,” said the Minister who was represented by the Minister of State for Transport Hon. Fred Byamukama Adopting a model BASA, he said will hasten the process of reviewing BASAs among Member States of COMESA, the East African Community and the Intergovernmental Authority on Development (IGAD).
Three States ready to pilot the COMESA electronic Certificate of Origin (COMESA)
Three COMESA Member States, Eswatini, Malawi, and Zambia, have successfully integrated and interfaced their national systems with the COMESA Electronic Certificate of Origin (e-CO) system. They are now poised to commence the first phase of piloting its implementation. The COMESA e-CO is a vital component of the COMESA digital Free Trade Area (FTA) Action Plan, which includes e-Trade, e-Logistics, and e-Legislation. The development and implementation of the COMESA e-CO fall under e-Logistics, aimed at facilitating intra-regional trade.
This initiative will eventually replace the manual Certificate of Origin procedures currently in use by Member States. It comes with a web-based e-CO system accessible via web browsers, aligning with the COMESA Protocol on Rules of Origin and its implementation Guidelines. The COMESA Secretariat is overseeing the e-CO implementation through the Divisions of Trade and Customs, and Information and Networking.
The 42nd meeting of the Committee of Experts of the Conference of Ministers of Finance, Planning and Economic Development (COM2024) kicked off today in Victoria Falls, Zimbabwe with a call for countries to transition into inclusive, low carbon, and resource-efficient economies by tapping into home-grown innovative solutions for financing. The annual ECA Conference of Ministers is being hosted by hosted by the Government of Zimbabwe on the theme of ‘Financing the transition to inclusive green economies in Africa: Imperatives, opportunities, and policy options’ between 28 February- 5 March, 2024.
Antonio Pedro, Deputy Executive Secretary at the ECA indicated that since the last Conference of Ministers, the world has fallen deeper into economic fragility, climate change, conflict, and distrust. Sadly, Africa has not been spared from these global trends. “We must accelerate the adoption of just and sustainable transitions, which require long-term structural changes and adequate investment,” said Mr. Pedro. African countries, he said, have the ability to create their own solutions to solve their problems. This should be a collective focus as in the continued fight to reform global systems.
The ECA Deputy Executive Secretary highlighted the key transformative areas that can have catalytic and multiplier effects across all the SDGs.
The 37th Ordinary Session of the Assembly of the Heads of State and Government of the African Union (AU) on 17 and 18 February 2024 marked another significant milestone in the implementation of two energy flagship initiatives supported by the European Union’s Global Technical Assistance Facility (EU GTAF).
The Summit’s Executive Council made pivotal announcements following last year’s recommendations of the Ministerial decision-making body of the AU that underscore the continent’s commitment to reliable, affordable and sustainable electricity and the development of its energy sector.
The government representatives: Called for the adoption of the African Single Electricity Market (AfSEM) with its Continental Power Systems Masterplan (CMP) to become an AU Agenda 2063 Flagship Project. AfSEM aspires to become the world’s largest electricity market by 2040 and through the CMP the necessary infrastructure is created; Adopted several key documents of the AfSEM and CMP which provide a solid foundation for the next steps in the implementation of these two key initiatives and will facilitate strategic planning as well as the harmonisation of the legal framework within the African energy sector; Called on the AU Member States to allocate financial resources for the implementation of the AfSEM and CMP.
Brazil urges ‘new globalization’ at G20 meet overshadowed by Ukraine (Yahoo News)
Brazil called for a “new globalization” to address poverty and climate change as it opened a meeting Wednesday of finance ministers from the world’s top economies, but the Ukraine and Gaza wars risked overshadowing the plea. “The global economic outlook is full of challenges,” Brazilian Finance Minister Fernando Haddad told his counterparts from the Group of 20 leading economies.
Brazil, which took over the rotating presidency of the G20 from India in December, is pushing for the group to prioritize the fights against poverty and climate change, alleviating the crushing debt burdens of low-income nations, and giving developing countries more say at institutions like the International Monetary Fund and World Bank. Also on the agenda: increasing taxes on corporations and the super-rich.
G20 to mention conflicts but sidestep controversies in joint statement (The Japan Times)
Group of 20 finance leaders meeting in Brazil this week are expected to make only a passing reference in their closing statement to regional conflicts, according to a draft version, due to deep divisions over wars in Gaza and Ukraine. The draft communique, far shorter than previous years as host nation Brazil works to sidestep geopolitical controversies, also said the likelihood of a soft landing in the global economy has increased but that uncertainty remains high.
“Risks to the global economic outlook are more balanced,” with faster-than-expected disinflation and more growth-friendly fiscal consolidation underpinning growth, the draft said.
Call for Action: G20 Finance Our Future for the Win (Global Citizen)
Together with other international civil society organisations, Global Citizen is calling for a redesign and upgrade of the world’s financial system. In a world rocked by crises, trillions that could be spent on addressing climate change, biodiversity loss, spreading hunger and conflicts, and investment in robust health and food systems, are instead being lost to inefficient systems no longer fit for the 21st century. A redesign by G20 finance ministers in 2024 is essential for our common future.
ANALYSIS: What influence can Africa wield at G20? (Premium Times Nigeria)
The African Union’s (AU) recent inclusion in the G20 has raised questions about its readiness to represent Africa’s interests and influence global policy on climate change, energy and reform of multilateral bodies. The just-concluded 37th AU summit provided cause for optimism that the organisation can advance Africa’s interests on the international stage while helping to resolve global problems. The summit outlined its G20 priorities, set the modalities for who would attend and clarified how the AU’s participation would be financed.
The AU’s six priorities at the G20 over the next three years are: fast-tracking Agenda 2063, advocating for reform of international financial institutions, enhancing agricultural output, achieving a just energy transition, more trade and investment for the African Continental Free Trade Area’s rollout, and improving Africa’s credit rating to boost investment in vaccine manufacturing and pandemic response.
BRICS Plus: Navigating global challenges and broadening influence (ORF)
The BRICS alliance has emerged as a dynamic force with a vision that extends beyond mere cooperation. At its core lies the ambition to establish a global economic system where nations can freely trade using their own currencies, thus reducing reliance on foreign organisations and currencies. This approach is also encapsulated in the “BRICS Plus” concept, signifying an expansion of the BRICS group to include additional member countries. The recent inclusion of Iran, Egypt, Ethiopia, Saudi Arabia, and the United Arab Emirates (UAE), from January 2024, marks a significant milestone in the evolution of BRICS.
The BRICS expansion facilitates market growth by providing access to new markets and trade and investment opportunities. This potential surge in economic activity can enhance economic growth and stability within the group. Diversifying economic interests is critical in mitigating risks and creating a more resilient financial ecosystem.
In essence, incorporating new members into BRICS extends its economic and geopolitical significance, offering avenues for market expansion, trade growth, and amplified influence in global financial affairs. This expansion positions BRICS as a potential voice for the Global South in economic, trade, and investment matters. BRICS members have demonstrated solidarity, advocating for initiatives like the temporary suspension of intellectual property rules related to COVID-19 vaccines and treatments at the World Trade Organization (WTO).
MC13: Talks on new issues yield five outcomes (The Economic Times)
Amid pressure on developing countries to yield to the demands of richer nations to accept new issues such as environment, labour and gender to make the United Arab emirates -chaired World Trade Organisation MC13 a success, New Delhi Tuesday said that already at least five such outcomes were in place such as new disciplines on services domestic regulation that are expected to lower trade costs by over $125 billion globally.
India would benefit from a move of over 70 nations like UK, UAE and Australia who have agreed to take on additional obligations in the services sector under the Services Domestic Regulations pact. Members such as Albania, Argentina, Australia, Bahrain, Brazil, Canada, China, Colombia, Costa Rica, Japan, Korea, New Zealand, Norway, Saudi Arabia, Singapore, Switzerland, UAE, UK and US are taking these additional obligations under the General Agreement on Trade in Services (GATS) to ease non-goods trade among themselves and extend the similar concessions to all other members of the WTO.
Developed nations make many promises on development issues in WTO, but very little action: India (Deccan Herald)
India on Wednesday said that the developed nations in the WTO have made many promises on issues pertaining to development, but ‘very’ little action happens on those matters. India also said that the developing countries urgently need flexibility in existing rules so that infant and young industries in these countries get support in terms of conducive policies, incentives, subsidies and level playing field.
In the working session on Development, India highlighted that historically, on the issue of development, there has been no dearth of promises made by developed countries, “on account of which the vulnerabilities of the developing countries including the LDCs (least developed countries) have only amplified further.” India on Wednesday objected to consideration of new issues for ministerial mandates unless past decisions and unfulfilled mandates were acted upon.
India, South Africa block investment agreement at WTO’s Abu Dhabi meet (Business Standard)
India and South Africa have filed a formal objection against an investment agreement at a World Trade Organization meeting in Abu Dhabi, blocking its adoption, a document showed and delegates confirmed on Wednesday. The Investment Facilitation for Development (IFD) Agreement, agreed by some 125 countries or about three-quarters of the WTO’s members, aims to simplify red tape, improve the investment environment and encourage foreign direct investment. But according to WTO rules, any one of its 164 members can block a deal from being adopted by the body - a step which is necessary to ensure that countries are in compliance.
DG Okonjo-Iweala encourages members to close remaining gaps to secure outcomes at MC13 (WTO)
WTO Director-General Ngozi Okonjo-Iweala on 28 February commended members for the “tremendous amount of progress” achieved after three days of intense work at the 13th Ministerial Conference (MC13) in Abu Dhabi. With less than 24 hours before the scheduled closing session of MC13, she called on ministers to go the extra mile and find convergence on the various issues at stake.
DG Okonjo-Iweala told members at a meeting of Heads of Delegations (HoDs) that the clock is ticking but stressed that if delegations keep working hard, a positive MC13 outcome is at hand and ministers should be able to go back home in time on 29 February, the last day of the Conference.
See also: DG Okonjo-Iweala to business: Your engagement and support are crucial (WTO)
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Settling on funding solutions for expedited grid infrastructure set as a Just Energy Transition Investment Plan priority (Engineering News)
Finalising funding solutions for the expedited expansion of South Africa’s electricity transmission grid has been identified as a key priority for the Just Energy Transition (JET) project management unit (PMU), which is located within the Presidency. The unit is overseeing the implementation of the country’s JET Investment Plan (JET-IP), which was approved in 2022 with the goal of stimulating R1.5-trillion (about $80-billion) in clean electricity, new energy vehicles and green-hydrogen investments, while also supporting workers and communities whose lives and livelihoods will be made vulnerable by the transition.
The JET-IP has received grant and concessional-loan pledges worth $11.6-billion from several developed countries. However, there is growing criticism over the lack of visible projects, with most of the concessional debt having flowed into the general fiscus in the form of policy loans and the bulk of the grant funding approvals having been made in favour of consultants rather than communities.
NLC protests: Why Nigeria’s economy is in such a mess (BBC)
Nigeria is currently experiencing its worst economic crisis in a generation, leading to widespread hardship and anger. The trade union umbrella group, the Nigeria Labour Congress (NLC), held protests in the main cities on Tuesday, calling for more action from the government. Like many nations, Nigeria has experienced economic shocks from beyond its shores in recent years, but there are also issues specific to the country, partly driven by the reforms introduced by President Bola Tinubu when he took office last May. Overall, annual inflation, which is the average rate at which prices go up, is now close to 30% - the highest figure in nearly three decades. The cost of food has risen even more - by 35%.
New Malawi Economic Monitor Calls for Commitment to Economic Reforms to Sustain the Emerging Recovery (World Bank)
Malawi’s medium-term growth outlook is improving because of bold reforms undertaken by the government in 2023 to stabilize the economy, although other numerous downside risks related to climate change, continued foreign exchange challenges, delays in the implementation of key macro-fiscal and structural reforms persist. Growth is therefore expected to increase only moderately in 2024, according to the latest World Bank Malawi Economic Monitor (MEM). The MEM includes a set of recommendations, including creating the foundations for export-led growth by investing in agricultural commercialization, continuing reforms to the Affordable Input Program, and policy support for exporting industries.
Plan to Turn EAC Into a Confederation With One Constitution Revealed (Kenyans.co.ke)
The East African Community (EAC) Affairs Principle Secretary (PS) Abdi Dubat has revealed that a plan is underway to transform the East African Community states into a political confederation. Speaking during an interview at Spice FM on Tuesday, February 27, Dubat stated that EAC was in the process of formulating a Constitution to govern the confederation. According to the PS, a committee was tasked with gathering information and conducting stakeholder engagement in all the member states, before making the first draft of the Constitution.
The Board of Directors of the African Development Bank Group has approved a $150 million Trade Finance Unfunded Risk Participation Agreement facility between the African Development Bank and Trade & Development Bank (TDB). The agreement is expected to boost intra-Africa trade, promote regional integration and contribute to the reduction of the trade finance gap in Africa, in line with the aspirations of the African Continental Free Trade Area (AfCFTA)
African Development Bank will provide guarantee cover of 50% and up to 75% for transactions in low-income countries and transition states on a risk share basis with TDB to a number of qualifying local and regional banks in the Common Market for Eastern and Southern Africa (COMESA) region, which are active in the trade finance sector. The facility is expected to support about $1.8 billion of trade over the next three years.
ECOMOF 2024: UBA Affirms Pledge to Stimulate African Economic Expansion (UBA)
Africa’s Global Bank, United Bank for Africa (UBA) Plc has reaffirmed its unwavering commitment to spearhead economic growth across the continent through targeted policies aimed at maximising the benefits derived from the mining and oil sectors. According to Chief Executive Officer, UBA Africa, Abiola Bawuah, who spoke at the just concluded 4th ECOWAS Mining and Petroleum Forum (ECOMOF 2024), by formulating and advocating investor-friendly policies by the sovereigns and financial intermediation and supports provided by UBA, the mining sector would be catalysed and transformed into robust economic pillars contributing substantially to the country’s gross domestic product.
Local reactions to the withdrawal of Burkina Faso, Mali and Niger from ECOWAS (Global Voices)
A few weeks before withdrawing from ECOWAS, Burkina Faso, Mali and Niger, all currently governed by military regimes and at the time under sanction by ECOWAS, had announced the creation of a military bloc called the Alliance of Sahel States (AoSS, or AES in French). January 28, 2024 marked the beginning of a major diplomatic crisis at the heart of the Economic Community of West African States (ECOWAS) as three of its member states— Burkina Faso, Mali and Niger —withdrew from the institution with immediate effect.
Reactions from political actors such as civil society in the remaining ECOWAS countries were swift and varied. In an article in the Ivorian news site Koaci, former Nigerian senator and human rights activist Shehu Sani was quoted as expressing regret at the decision by these military regimes, which, in his view, reflected a lack of understanding among the leaders.
See also: How will Niger benefit from lifted ECOWAS sanctions? (DW)
African leaders demand financial systems reform; launch ‘Africa Club’ at 37th African Union Summit (Down To Earth)
The final leg of the 37th African Union Summit concluded on February 18, 2024. Heads of states and governments of the member countries of the African Union (AU) convened in Addis Ababa, Ethiopia to deliberate upon issues of education, climate, economy and more.
It is widely known that countries from Africa have made minimal contributions to today’s climate crisis, yet suffer disproportionately from its impacts. African governments have increasingly relied on using public finance for mitigation efforts, often at the cost of other pressing national priorities, including the implementation of the United Nations-mandated Sustainable Development Goals (SDG).
The need to increase access to better quality finance for climate and development efforts in developing countries has grown in recent years. For the same, there has been growing recognition of the need to make changes to the global financial system, which includes the interlinkages between various actors such as international financial institutions, economic governance and financial regulatory structures, and make them fit for purpose, especially to address the financing needs of developing countries.
President Oramah delivers 8th Goddy Jidenma biennial lecture (Afreximbank)
Delivering a lecture titled “The Trade Route to Poverty Reduction in Africa in a De-globalising World” at the Eighth Biennial Lecture of the Goddy Jidenma Foundation in Lagos on Friday, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, noted that “the world is de-globalising at an unprecedented pace, and the implications for developing countries could be dire.”
Prof. Oramah told guests that the African Continental Free Trade Agreement (AfCFTA) provided an opportunity for Africa to take its destiny into its own hands by opening regional supply chains that would foster economic growth and development. As a solution to the 42 fragmented payment systems across Africa, Afreximbank, in partnership with the AUC and the AfCFTA Secretariat, had launched the Pan-African Payment and Settlement System (PAPSS), which domesticates all intra-African trade payments. Afreximbank was supporting that system with a $3-billion settlement fund. By May 2024, an African currency trading platform would also be launched under the auspices of PAPSS.
GBIS 2024 Opening Remarks Underscore Role of Collective Progress (Global Black Impact Summit)
There is a need for inspirational leaders who can guide the global Black community during times of crisis, Bermuda’s Minister of Economy and Labor Jason Hayward stated during the opening of Global Black Impact Summit (GBIS) on February 27 in Dubai. Delivering the opening remarks, Minister Hayward emphasized the importance of collective progress, stating, “True liberation and empowerment can only be achieved through collective progress. We must find a way to uplift the entire community.”
African Energy Transition Takes Center Stage at GBIS (Energy Capital & Power)
At the Global Black Impact Summit in Dubai on February 27, a panel discussion on energy transition, moderated by NJ Ayuk, Executive Chairman of the African Energy Chamber, focused on Africa’s pivotal position in the global energy arena. The dialogue commenced with an exchange between Ayuk and Energy Analyst Amena Bakr. “In energy, we have to tell our own story,” stated Bakr, highlighting the need for African countries to assert their right to develop renewable energy resources while balancing concerns about oil and gas exploitation. She pointed out the disparity in emissions between more developed countries and Africa, where only 3% of global emissions originate.
Reversing the decline in LDCs’ services exports post-pandemic (Trade for Development News)
Although the services sector has emerged as a new engine of economic growth, the lingering effects of the COVID-19 pandemic have severely affected services exports from the least developed countries (LDCs), with an approximate loss of almost USD29 billion in foregone exports over the past three years. While global services exports have rebounded from the shock of COVID-19, the recovery in the LDCs is lagging. Urgent actions by the LDCs and their trading and development partners to improve utilization of the WTO Services Waiver, incentivize foreign direct investment (FDI) and technology transfer, promote regional trade initiatives, leverage Aid for Trade, and address the digital divide can help reverse this trend, enabling the LDCs to benefit from a services-led transformation.
Graduation from LDC status represents an important milestone in the development of LDC countries. LDCs have however at the same time pointed out the challenges they face trying to integrate into the global economy while international support measures are being phased out. The WTO’s LDC group has therefore been pursuing a smooth transition mechanism in the WTO. The aim of this is to extend LDC-specific preferences, provisions, waivers and exemptions after graduation.
Bangladesh’s graduation from LDC status is scheduled for 26 November 2026. The new Bangladesh Patents Act is a significant development which both developing countries and LDCs should follow with interest. In the context of the WTO and the TRIPS Agreement, there appears to be a possibility that challenges may be raised in respect of both the content of the new law and the manner in which its provisions will be applied in practice. The fact that it appears to have been based on the need to protect a specific national industry (pharmaceuticals) could be a complication factor.
Digitalising MC13: Global institutions sign pact to promote digital trade (Trade Finance Global)
A group of leading global institutions signed an agreement to promote a unified goal of developing a neutral, open, non-profit, and inclusive digital platform for sharing trade data. This initiative aims to dismantle existing barriers and enhance inclusivity and participation by significantly reducing the costs and time involved in cross-border trade. The agreement, known as the Teaming Agreement, was finalised during the 13th Ministerial Conference (MC13) of the WTO in Abu Dhabi. If implemented effectively, the economic impact of this agreement could be significant, potentially reducing trade transaction costs by 80%, narrowing the trade finance gap by 50%, shortening some cross-border processing times from 25 days to just one day, and boosting SME efficiency by 35%.
New disciplines on good regulatory practice for services trade enter into force (WTO)
The entry into force of new disciplines on services domestic regulation, announced at the 13th Ministerial Conference (MC13) in Abu Dhabi on 27 February, is expected to lower trade costs by over USD 125 billion worldwide. WTO members participating in the Joint Initiative on Services Domestic Regulation began incorporating the new disciplines on good regulatory practice into their existing services commitments once the disciplines were successfully concluded in December 2021. The certification process for these disciplines has now been completed for 52 WTO members, with more expected to be finalized in the coming weeks.
WTO members seek convergence on fisheries subsidies and agriculture at MC13 (WTO)
WTO members today (27 February) engaged in intense discussions to get closer to meaningful outcomes on fisheries subsidies and agriculture at the 13th Ministerial Conference (MC13) in Abu Dhabi. Ministers participated in dedicated meetings on both issues followed by convergence-building sessions to seek to bridge the remaining gaps. Members also endorsed the entry into force of new disciplines on services domestic regulation and advanced work on plastics pollution, fossil fuel subsidy reform, and environmental sustainability.
Members of three environmental initiatives share plans for next phase of work at MC13 (WTO)
Co-sponsors of the three environmental initiatives at the WTO presented on 27 February, at the 13th Ministerial Conference (MC13) in Abu Dhabi, the next steps they are taking to advance work on plastics pollution, environmental sustainability, and fossil fuel subsidy reform, building on the extensive analytical work and experience sharing they have conducted since MC12.
“I welcome the substantive work carried out by the initiatives over the last two years, with the support of stakeholders and experts in the environment community. They are an example of how ambitious WTO members are finding innovative ways to reinforce the WTO’s deliberative function to address 21st century challenges,” DG Okonjo-Iweala said in remarks released to mark the launch of the MC13 outcomes by the three environmental initiatives — the Dialogue on Plastics Pollution and Sustainable Plastics Trade (DPP), the Trade and Environmental Sustainability Structured Discussions (TESSD), and the Fossil Fuel Subsidy Reform (FFSR) Initiative.
“Each of the three environmental initiatives are exploring the interaction between trade and sustainability in their respective areas of work. Yesterday we had a conversation with the full membership about trade and sustainable development, including trade and industrial policy and policy space for industrial development. Fisheries subsidies is another sustainability item we are dealing with. There are a lot of complementarities among these initiatives and the ongoing work at MC13,” DDG Paugam said at the close of the three back-to-back press conferences conducted respectively by each group.
PH backs advancement of sustainable trade at WTO meet (Philippine News Agency)
The Philippines supports the endorsement of the Coalition of Trade Ministers on Climate’s Framework on Voluntary Actions to address trade-related climate challenges at the World Trade Organization (WTO) 13th Ministerial Conference (MC13) in the United Arab Emirates. “We believe that the work of the Coalition complements the existing work at the WTO on trade and sustainable development. Thus, we welcome discussions and thematic sessions on the transfer of goods and technologies that support climate adaptation and mitigation. In line with this, we must also ensure a fair and just transition towards achieving our climate goals so that no one will be left behind,” Trade Secretary Alfredo Pascual, who is leading the Philippine delegation at the MC13, said. The Coalition was established in 2023, with the Philippines as one of its founding members. As of this month, it has 34 member countries.
Second Ministerial meeting of the Coalition of Trade Ministers on Climate (COTMC)
A key outcome of the meeting was the endorsement of a communiqué, accompanied by a Menu of Voluntary Actions, with a clear message for the WTO to pursue ambitious commitments in support of the global response to the climate crisis. It also calls upon all WTO Members to accept the Agreement on Fisheries Subsidies, underscoring the critical role of sustainable practices in trade.
5 things you should know about ‘clean energy’ minerals and the dirty process of mining them (UN News)
Although many will argue that we’re not moving fast enough to deal with the climate emergency, the energy sector is starting to turn away from energy sources that rely on big, dirty power stations, sending plumes of greenhouse gases into the atmosphere, and turn to cleaner sources such as solar and wind. However, to power a low-emission world, we will need to mine a lot more minerals, and this is often a dirty process. Here is what to know about “energy transition minerals” and how we can limit the damage caused by getting them out of the ground.
World unites at UN Environment Assembly to combat ‘triple planetary crisis’ (UN News)
The latest meeting of the “world’s parliament on the environment” opened in Nairobi, Kenya, on Monday with a clear call for stronger global action to address the “triple planetary crisis” of climate change, nature loss and pollution. More than 7,000 delegates from 182 countries are scheduled to take part in the sixth session of the United Nations Environment Assembly (UNEA-6) which runs through Friday. Delegates are convening in the Kenyan capital as climate change intensifies, a million species face the risk of extinction, and pollution remains among the world’s leading causes of premature death.
Financing Nature-based Solutions for a better future (UNEP)
The world has gathered here in Nairobi to seek inclusive multilateral solutions to the triple planetary crisis: the crisis of climate change, the crisis of nature and biodiversity loss and the crisis of pollution and waste. Globally, protection-related Nature-based Solutions represent roughly 80 per cent of additional land area needed by 2030 but require only 20 per cent of additional finance.
Sessions during the first day included a presentation by an EIA Senior Intelligence Analyst on the state of wildlife trafficking in West and Central Africa, an open and lively discussion by attendees on their own experiences of tackling illegal wildlife trade – especially the key role played by corruption – and a presentation on illegal trade in the Republic of the Congo by the World Wildlife Fund (WWF).
Welcoming attendees on Monday, Justin Gosling, EIA Senior Project Coordinator (Securing Criminal Justice in West and Central Africa), outlined how East Africa was previously a continental hub for the trafficking of wildlife contraband such as elephant ivory and pangolin scales, but that improved enforcement in that region spurred much of the criminal activity to relocate elsewhere.
Brazil’s Lula spotlights Global South in G20 presidency (SaltWire)
Brazil’s President Luiz Inacio Lula da Silva has set his sights on giving the Global South a larger voice in world decision-making, using his country’s presidency this year of the G20 group of largest economies. Lula’s call for reform of global governance and the updating of the eight-decades-old United Nations system was amplified at last week’s meeting of G20 foreign ministers in Rio de Janeiro. Brazil had already taken strides in this direction by insisting that the African Union should be a formal member of the G20, citing the example of the European Union. The AU will participate fully in this year’s G20 on behalf of African nations. The push continues this week as G20 finance ministers meet in Sao Paulo.
The global economy appears on track for a soft landing, but activity and growth prospects remain weak. The cyclical position of G-20 countries has proven stronger than previously anticipated as disinflation has so far proceeded without triggering recession and emerging market economies have demonstrated improved resilience.
Looking ahead monetary policy is expected to loosen somewhat in 2024. However, medium-term growth prospects remain subdued—reflecting secular trends and challenges including weak productivity growth, ageing, geoeconomic fragmentation and climate vulnerabilities. These trends also undermine income convergence and increase the vulnerability of economies to external shocks.
With the economic recovery on firmer footing, risks to the outlook are more balanced. On the upside, global growth could be higher than expected if the pace of disinflation is faster than anticipated and brings forward monetary easing, or fiscal consolidation is more gradual than initially envisaged. On the downside, additional commodity price spikes, persistent labor market tightness, or renewed supply chain tensions would reignite inflationary pressures.
Climate vulnerabilities also weigh on medium-term global growth prospects, falling disproportionately on Africa, where meaningful demographic dividends have yet to be realized. Even though the pace of globalization has slowed, growth opportunities remain—including from trade in digital services,
Universal connectivity gets a $9 billion private sector boost (UN News)
Around 2.6 billion people remain offline worldwide, according to data from the specialized UN agency, which drives innovation in communications technology. As telecommunications infrastructure forms the backbone of connectivity and digital transformation, it is vital for closing the global digital divide and overcoming development impediments in areas from education and health to government services and trade, the agency said.
To achieve that, ITU has called for $100 billion in overall investments by 2026 to provide the expertise and resources required to extend universal, meaningful connectivity and sustainable digital transformation to every corner of the globe. ITU also launched Partner2Connect in 2021 to reach this goal. Today, more than 400 organizations have committed to investing over $46 billion in the coming years to realize this shared vision.
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Onus largely on private sector to recover economy, says Deloitte (Engineering News)
With the 2024/25 national Budget not having provided much relief to taxpayers, and the economy having a high debt to gross domestic product (GDP) ratio and slow growth rates, South Africans need to redefine resilience, says consultancy Deloitte. “As government opens up sectors to more private investment, there is hope that corporates will be able to provide the impetus to bolster the economy,” said Deloitte Africa tax and legal MD Itereleng Kubeka.
While the Minister announced R943-billion in infrastructure investment by government over the next three years, much greater capital investment would be required, not just through delivery by the public sector, but with the intent of crowding in the private sector via public-private partnerships, while enhancing the quantity and quality of infrastructure delivery by government, Deloitte reported.
Itac finds steel dumping harming Sacu industry, recommends anti-dumping duties against Chinese imports (Engineering News)
Trade agency the International Trade Administration Commission of South Africa (Itac) has, following an investigation into alleged dumping of steel products from the People’s Republic of China, determined that dumping of products originating in or imported from China is taking place. Itac also determined that the industry of the regional bloc Southern African Customs Union (Sacu) is experiencing material injury and that there is a causal link between the alleged dumped imports and the material injury experienced by the Sacu industry.
The commission made a final determination to recommend to South Africa’s Trade, Industry and Competition Minister Ebrahim Patel that definitive anti-dumping duties be imposed against imports of flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, plated or coated with zinc, and of a thickness of less than 0.45 mm originating in or imported from China.
The South African Coil Coaters Association, which is a Sacu industry body, lodged an application. Steelmaker ArcelorMittal South Africa is also the major producer of the products investigated and provided material injury information during the investigation.
Bridging Continents: Türkiye and South Africa Forge Stronger Trade and Investment Ties (BNN)
In a world that’s rapidly globalizing, the distance between continents is shrinking, not just in miles but in economic barriers. The recent flourishing of trade and investment relationships between Türkiye and South Africa stands as a testament to this phenomenon. With both nations experiencing growth in these areas, it’s clear that the efforts to enhance bilateral ties are bearing fruit. But what’s driving this surge in economic cooperation, and how are businesses and economies on both sides of the equation standing to benefit?
The story of Türkiye and South Africa is more than just about numbers and economic indicators. It’s about building bridges between continents and cultures. With over 60 Turkish companies thriving in South Africa and more than 65 South African companies making their presence felt in Türkiye, the economic landscape is evolving. This evolution is not just beneficial for the businesses directly involved but also for the economies and people of both nations.
Kenya oil dealers in panic as Uganda picks Tanga port over Mombasa (The East African)
Kenyan oil dealers are in a crisis mode after Uganda stuck to its guns and started talks with Tanzania to import its fuel through the Port of Tanga instead of the Port of Mombasa following a spat with Nairobi. Uganda had initially announced that it was in talks with Tanzania to use the Port of Dar es Salaam to import its fuel after Kenya refused to give it concessions to use its pipeline. But the road distance between Dar es Salaam and Kampala is 1,715.6km, which is 49.5 percent longer that the distance of 1,147.6km between Mombasa and Kampala. This shorter distance means that Uganda saves up to $35 per cubic meter for using Mombasa instead of Dar.
But this has changed after it emerged last week that Uganda and Tanzania are locked in talks that will see the former import fuel via the Port of Tanga, which is far closer to Kampala. Tanga is the oldest port in East Africa and is the second largest in Tanzania. While it’s far smaller than the Dar and Mombasa ports, Tanzania has been boosting its capacity to handle more cargo in recent years.
Zim rolls out trade reforms (The Herald)
Zimbabwe has implemented trade facilitation reforms despite facing challenges that impede it to fully and meaningfully participate in global trade, Foreign Affairs and International Trade, Dr Frederick Shava yesterday told a meeting of Landlocked Least Developing Countries (LLDC) in Abu Dhabi.
“To date, Zimbabwe has so far implemented a number of trade facilitation reforms with notable progress in the application of information and communication technology solutions to facilitate trade through the use of automated systems for customs data. “We are also in the process of completing the process to implement the Zimbabwe electronic single window which will further facilitate trade administrative processes at our national borders. This will complement the ongoing establishment of one-stop border posts at our national borders.
“In spite of the many trade facilitation reforms Zimbabwe is pursuing and recently implemented, we continue to share challenges faced by developing countries occasioned by multiple crises, which include inflation, energy and food prices, and financing, as well as disruptions in supply chains and elevated trade costs - which all acutely affect LLDCs,” Dr Shava said.
Zim needs to ramp up manufacturing: AfCFTA (The Zimbabwe Mail)
Buy Zimbabwe, an initiative to promote consumption of local products, says Zimbabwe should ramp up its manufacturing capacity to withstand competition and tap into opportunities under the African Continental Free Trade Area (AfCFTA).
In its 2023 annual report, Buy Zimbabwe said without a robust buy local initiative with set local content thresholds, the opportunities in Africa will be lost. “With the coming on board of the African Free Continental Trade Area (AFCTA) which is estimated to have a combined GDP of US$2 trillion, it is important for Zimbabwe to enhance her local productive capacity. “Without a robust buy local initiative with set local content thresholds the opportunities in Africa will be missed.
In this context, Buy Zimbabwe will have its programmes this year anchored on four pillars that are accelerated engagements with the public sector to ensure local content requirements are enforced; 80 percent top-of-mind awareness; development of local databases to track domestic producers and link them to markets.
In partnership with the Standards Association of Zimbabwe and QMIZ (Quality Management Institute of Zimbabwe), it will implement local content rating programmes. “It is estimated that between 10 percent and 15 percent of Zimbabwe’s Gross Domestic Product goes through public procurement. “Enhancing multiplier effects in this sector is critical for growth. “Presently, the law in Zimbabwe gives preference to domestic suppliers. “However, the lack of local content thresholds has left the exercise amenable to imports,” said Buy Zimbabwe.
Ethiopia, Zimbabwe enhancing trade, economic cooperation (ENA)
Ethiopia and Zimbabwe striving to elevate their ties through enhancing trade, investment and fostering overall development, Ethiopian Embassy in Harare said. Ethiopian Ambassador Plenipotentiary to the Republic of Zimbabwe, Rashid Mohammed who is also non-resident ambassador to the Republic of Zambia and the Republic of Mauritius, reaffirmed commitment to strengthening bilateral ties, fostering economic cooperation, and promoting cultural exchange between the two nations.
He stated that both countries supported each other in many fields such as aviation, air force, education and assistance each other in technical support, capacity-building programs, and humanitarian aid in times of need. Both are highly elevating their long diplomatic relationship working collaboratively in the areas of trade, economic cooperation and continued to maintain cordial diplomatic ties based on shared interests and mutual respect.
Ethiopia finalizes preparations to trade under AfCFTA (ENA)
Ethiopia has set to exchange goods under the African Continental Free Trade Area (AfCFTA) following endorsement of country’s tariff line, Ministry of Foreign Affairs announced. In a presser held yesterday, Foreign Affairs State Minister, Ambassador Misganu Arega expressed that leaders of the African Union member states have endorsed Ethiopia’s tariff line for goods to be traded under the AfCFTA. “We have now the opportunity to join the nine countries which are implementing the AfCFTA,” he said. Tariff concessions have been made on commodities on aggregate, he noted.
Meanwhile, asked about Ethiopia’s further engagement in the AU ordinary sessions, the State Minister said that the country has informed leaders of the Union clearly about Somalia’s case appertained to the Ethio-Somaliland MoU. “Ethiopia’s foreign policy underlines the need of regional integration, cooperation and mutual benefits. We have no history of invading or annexing others. In case, we need to work on boosting the people to people integration since we both have same people,” he said.
Ethiopia’s Search for the Sea (tralac)
On New Years Day 2024, the Prime Minister of Ethiopia, Abiy Ahmed signed a memorandum of understanding (MOU) with the president of Somaliland for access to the Red Sea. This angered Somali (Mogadishu) officials who claim the territory as their own. The MOU allegedly promises Somaliland a stake in Ethiopian Airlines and the possibility of the recognition of their sovereignty in exchange for sea access. Ethiopia has been landlocked since the independence of Eritrea (previously part of Ethiopia) in 1993, and the Somaliland Deal is part of Ethiopia’s drive to regain sea access given limited viable alternatives.
FG uncovers 32 routes of smuggling food out of Nigeria (Daily Trust)
The federal government has uncovered 32 routes through which food items are smuggled out of the country. Speaking at a conference on Public Wealth Management organized by the Ministry of Finance Incorporated (MOFI) which was held in Abuja on Tuesday, Vice President Kashim Shettima said, “Just three nights ago, 45 trucks of maize were caught being transported to neighbouring countries.
“Just in that Ilela axis, there are 32 illegal smuggling routes. And the moment those foodstuffs were intercepted, the price of maize came down by N10,000. It came down from N60,000 to N50,000.” So, there are forces that are hell-bent on undermining our nation but this is the time for us to coalesce into a singular entity,” he said.
IMF Staff Completes 2024 Article IV Mission to Mauritius (IMF)
“The Mauritian economy has rebounded strongly from the impact of the pandemic, supported by the deployment of pre-pandemic fiscal and external buffers. Real GDP growth reached 8.9 percent in 2022 from rebounding tourism and manufacturing. Rapid growth was sustained in 2023—estimated at 6.9 percent—with output now having exceeded its pre-pandemic level. Vibrant tourism, social housing construction, and continued strong performance of transport and financial services buoyed growth.
“Advancing structural reforms, including by sustaining compliance with Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards, improving governance, reducing skill mismatches in the labor market, and fostering digitalization and climate-resilient infrastructure investment is key to supporting private sector investment and promoting economic diversification.
Unlocking the Potential of Women and Adolescent Girls in Madagascar will Reduce Poverty (World Bank)
Malagasy women and girls face multiple disadvantages that affect their ability to accumulate human capital in education and health, participate in economic opportunities, and make decisions, according to a new World Bank report “Unlocking the Potential of Women and Adolescent Girls – Challenges and Opportunities for Greater Empowerment of Women and Adolescent Girls in Madagascar”.
Women and girls cannot access equal opportunities as men and boys in the country can and are disproportionally affected by the impacts of climate change and the COVID-19 pandemic, which increases their vulnerability to poverty, violence, and discrimination.
“Investing in the social and economic empowerment of women and adolescent girls can lead to sustainable economic growth and benefit the country. This is the reason why the World Bank is supporting Madagascar through the recent East Africa Girls’ Empowerment and Resilience Regional Program (EAGER) and other programs in the portfolio to promote girls’ education, increase women’s productivity in the labor market, and strengthen the capacity of local administrators, community leaders, and service providers reforms to implement gender equality reforms effectively,” says Atou Seck, World Bank Country Manager for Madagascar.
Renewed reform efforts helping to boost private sector activity and investment would help boost growth, which is currently slowing amid high domestic inflation, and would support the creation of more high-quality jobs, according to a new OECD report. The first OECD Economic Survey of Egypt projects GDP growth to ease to 3.2% in fiscal year 2023/24, before increasing gradually to 5.1% by fiscal year 2025/26. Growth is expected to be driven by growing consumption, provided inflation subsides and despite the gradual withdrawal of fiscal support. Investment is set to remain weak as long as financing conditions remain tight in the context of the continuing fight against inflation. Export growth is expected to pick up if geopolitical tensions in the region recede.
Kenya, Uganda in drive to end feed shortage (The East African)
Kenya, Uganda and Somalia are among six countries to pilot a programme to plug persistent shortage of animal feed and fodder. Under the programme dubbed “Resilient African feed and fodder systems (RAFFS),” researchers want to improve livestock production and, by extension, nutrition. “The lack and poor quality of feed is a driver of production inefficiencies translated into the high cost of livestock sourced foods unaffordable for those that need the nutrients most,” African Union-Inter African Bureau for Animal Resource’s (AU-IBAR) Dr Sarah Ashanut Ossiya said.
According to Josefa Sacko, the African Union Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment, this inefficiency is “further exacerbated by over 40 percent wastage of existing feed resources. The recent triple global crises of climate change, drought and flooding, Covid-19 and conflict in Russia – Ukraine and other conflicts have severely exposed the vulnerabilities in African feed and fodder systems.”
“The recent drought in the Greater Horn of Africa region resulted in a massive loss of over 9.5 million livestock, valued at over $2 billion,” she added. Other losses are invaluable livestock genetic resources developed over decades, serving as a key factor for livelihoods and incomes, especially for pastoralists and smallholders who contribute over 80 percent of meat and milk production in the region. “Subsequently, Africa imports about $4 billion worth of livestock sourced foods annually, effectively exporting millions of lucrative youth jobs,” added Sacko.
Algeria announces road connection, free trade area with Mauritania (The Arab Weekly)
Wary of regional isolation, especially after Morocco’s launch of its “Royal Atlantic Initiative,” facilitating Sahel countries’ access to the Atlantic Ocean, Algeria has turned its sights towards its southern neighbour Mauritania.
President Abdelmadjid Tebboune and his Mauritanian counterpart Mohamed Ould Cheikh El Ghazouani opened on Thursday a gate at the border of the two North African countries. They also agreed to set up a free trade zone and build an 847 kilometre road, which will link the Algerian town of Tindouf to Mauritania’s Ezouirat. Experts see the ambitious project as likely to face a few hurdles considering its lack of clear vision, its cost and the sparse population inhabiting the area.
This agreement comes a few days after OPEC member Algeria also announced it would invest $442 million in energy projects in Mali, Niger and Libya. Algeria has furthermore said it will open four other free trade zones in 2024 with Mali, Niger, Tunisia and Libya.
High cost of intra-EA cash transfers slows the Common Market (The East African)
East Africans are still struggling to find cheap options to send money from one country to another within the region, making it one of the greatest barriers to trade and slowing the implementation of the Common Market Protocol. Latest data from the World Bank shows that some money remittance corridors in the region are among the most expensive in the world, and much higher than the global average, despite efforts to bring down transaction costs to ease trade.
An analysis by the IMF reveals that many factors are behind the high cost of cross-border payments in emerging markets and developing economies, mostly in the origin countries. The results, published last month in a report dubbed IMF and World Bank Approach to Cross-Border Payments Technical Assistance. “More developed infrastructure and enabling legal and regulatory frameworks for payments in the sender jurisdiction are associated with lower average cost of sending remittances as well as average fees,” the IMF said.
COMESA, EAC to triple horticulture growth (Tanzania Daily News)
Public and private sectors of the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) have joined forces to triple growth of the horticultural industry in a decade’s period. The two RECs will in March 2024 roll out a COMESA-EAC Horticulture Accelerator (CEHA) and its marshal plan to fast-track growth of the industry, beginning with avocado, onion and Irish potato value chains.
“Avocado, onion, and Irish potato can generate a combined 230 million US dollars per year for approximately 450,000 smallholder farmers of a minimum farm size of 0.4 hectare with 60 avocado trees, or 1 hectare for onion farmers,” the CEHA Coordinator, Mr Apollo Owuor, said. Other value chains, such as tomato and cabbage may be added in future as will be recommended through the CEHA structures, Mr Owuor told a maiden stakeholders’ meeting for Tanzania chapter in Arusha, under the auspices of the country’s champion of horticultural industry, TAHA.
“CEHA targets to achieve 12 key performance indicators, including increasing intra-regional trade in fruits and vegetables to 25 million US dollars and global exports from 416 million US dollars in 2021 to 950 million US dollars by 2031,” Mr Uwour told the meeting in Arusha recently. The idea is to harmonise COMESA-EAC fragmented regulatory and standard policies, coordinate production chain, address poor storage and transportation snags for perishable crops and ensure availability of quality and sufficient seeds. “For instance, some ports within the EAC that serve the rest of land-linked countries lack what we call green lanes to fast-track clearance of perishable goods to the overseas markets, so CEHA seeks to tackle such a challenge,” he explained.
ECOWAS lifts coup sanctions on Niger in a new push for dialogue (Africanews)
West Africa’s regional bloc known as ECOWAS has lifted travel, commercial and economic sanctions imposed on Niger that were aimed at reversing the coup staged in the country last year, a senior official announced Saturday. The sanctions will be lifted with immediate effect, the president of the ECOWAS Commission, Omar Alieu Touray said after the bloc’s meeting in Nigeria’s capital, Abuja, that aimed to address existential threats facing the region as well as implore three junta-led nations that have quit the bloc to rescind their decision.
The summit of the 15-nation regional economic bloc known as ECOWAS in Nigeria’s capital, Abuja, comes at a critical time when the 49-year-old bloc’s future is threatened as it struggles with possible disintegration and a recent surge in coups fueled by discontent over the performance of elected governments whose citizens barely benefit from mineral resources.
See also: ECOWAS lifts sanctions on Niger weeks after Sahel states announce withdrawal from bloc (Peoples Dispatch)
ECOWAS lifts sanctions against Guinea and Mali (Africanews)
After Niger, Guinea, and Mali. In a statement released on Sunday, February 25, the Economic Community of West African States (ECOWAS) announced “lifting financial and economic sanctions against the Republic of Guinea” and “lifting restrictions on the recruitment of citizens of the Republic of Mali for positions within ECOWAS institutions.”
The regional organization had convened a new extraordinary summit on Saturday to discuss “politics, peace, and security in the Republic of Niger,” as well as “recent developments in the region.” The lifting of sanctions against Guinea and Mali was not specified during the final address by Omar Alieu Touray, the President of the ECOWAS Commission on Saturday evening.
Exports venturing into uncharted territories of Africa, Asia, Europe: Indian Govt (Business Standard)
At a time when global trade is facing geo-political uncertainties, India’s exports of goods like automobiles and gold jewellery have ventured into uncharted territories of Central Asia, Africa and Latin America, according to an analysis by the commerce ministry. The analysis has shown that India has penetrated into what are termed as “absolutely new markets” in regions such as Africa, Central Asia, Latin America and North America during April-December 2023.
The “absolutely new markets” refer to areas where India did see any export during April-December 2022, but healthy growth of certain principal commodities like motor vehicles, two- and three-wheelers, petroleum products, sugar, gold and other precious jewellery were recorded in April-December 2023.
Exports of these commodities to the absolutely new markets during April-December 2023 stood at USD 234 million as against nil shipments during the same period of 2022. It added that these commodities captured a greater number of markets in the Central Asia, Africa, and European regions.
Navigating the Evolving Landscape between China and Africa’s Economic Engagements (IMF)
China and Africa have forged a strong economic relationship since China’s accession to the WTO in 2001. This paper examines the evolution of these economic ties starting in the early 2000s, and the subsequent shift in the relationship triggered by the commodity price collapse in 2015 and by the COVID-19 pandemic. The potential effects on the African continent of a further slowdown in Chinese growth are analyzed, highlighting the varying effects on different countries in Africa, especially those heavily dependent on their economic relationship with China.
The African Union Commission and World Bank Seal a New Grant Agreement to Foster Regional Integration (World Bank)
The African Union Commission (AUC) and the World Bank have marked a significant milestone in their partnership with the signing today of a grant agreement to support the implementation of the Africa Think Tank Platform Project aimed to help think tanks across the continent to produce policy-relevant research on critical cross-border priority issues.
The $50 million project will enable the AUC to create and set up the structures and systems necessary to operate a continent-wide platform for effective cooperation and harmonization on regional policy issues among country-level policymakers, regional associations, and think tanks. Additionally, it will facilitate resource mobilization and the creation of facilities to attract funds from various stakeholders to support the platform’s operations. This new project brings the total value of World Bank-supported projects, approved by its Board of Directors in the past six months, to $131 million, all aimed at supporting the implementation of AUC’s strategic priorities.
Ukraine, Gaza Polarize G-20 as Global Money Chiefs Seek Sidestep (Bloomberg)
The world’s top economic policymakers figure they’ll have to steer clear of two conflicts convulsing global politics — the wars in Ukraine and Gaza — to make progress on anything else at this week’s G-20 summit in Brazil. There’s plenty more to talk about. The host nation is pushing ambitious plans on inequality and climate change. Finance ministers are keen to address trade and corporate taxation. Central bankers want to discuss cross-border money flows and the tricky last phase of the global inflation fight.
UN Environment Assembly opens with calls for stronger multilateral action (UN Environment)
Ministers of environment and other leaders from more than 180 nations convened today in Nairobi for the start of the sixth session of the United Nations Environment Assembly (UNEA-6). With a focus on strengthening environmental multilateralism to address the triple planetary crisis of climate change, nature loss and pollution, this year’s Assembly will be negotiating resolutions on issues ranging from nature-based solutions and highly hazardous pesticides to land degradation and drought, and environmental aspects of minerals and metals.
As climate change intensifies, a million species head towards extinction, and pollution remains one of the world’s leading causes of premature death, UNEA-6 will see countries consider some 19 resolutions, part of a broader push to spur more ambitious multilateral environmental action. The resolutions cover, among other issues, circular economy; solar radiation modification; effective, inclusive, and sustainable multilateral actions towards climate justice; sound management of chemicals and waste, and sand and dust storms.
More than 7,000 delegates from 182 UN Member States and more than 170 Ministers have registered for UNEA-6, taking place under the theme, effective, inclusive and sustainable multilateral actions to tackle climate change, biodiversity loss and pollution. Delegates this week will include Heads of State, representatives from government, civil society, and the private sector.
See also: What is the UN Environment Assembly and why does it matter? (UN News)
G20 ministers in Rio call for reform of international institutions (Yahoo News)
G20 foreign ministers called for comprehensive reforms of the most important international organizations as they met in Rio de Janeiro, while war continues to rage in several parts of the world. “Everyone agreed that the most important multilateral institutions such as the UN, the World Trade Organization, the World Bank and the International Monetary Fund must be reformed in order to meet the challenges of today’s world,” said Brazilian Foreign Minister Mauro Vieira on Thursday at the end of the meeting. The United Nations is indispensable as an organization for peace and security, he said.
“As far as the multilateral development banks and the International Monetary Fund are concerned, there was also broad agreement on the need to facilitate access to finance for the poorest countries and to improve the representation of developing countries in the governing bodies,” said Vieira.
How the G20 Can Build on the World Economy’s Recent Resilience (IMF)
With recent improvement to the global-near term outlook, G20 policymakers have an opportunity to rebuild policy momentum, setting their sights on a more equitable, prosperous, sustainable, and cooperative future. After several years of shocks, we expect global growth to reach 3.1 percent this year, with inflation falling and job markets holding up. As our new report to the G20 makes clear, some of these trends—such as AI—hold promise to lift productivity and improve growth prospects. We badly need it—our projections for medium-term growth have declined to the lowest in decades.
Against this backdrop, Brazil’s G20 agenda highlights key issues such as inclusion, sustainability, and global governance, with a welcome emphasis on eradicating poverty and hunger. This ambitious agenda, which the IMF is working to support, can guide policymakers at this pivotal moment in the global recovery.
India-Brasil-South Africa Dialogue Forum (IBSA) gains strength at G20 meeting (G20 Brasil)
Foreign Affairs ministers from the three Global South countries—who coincidentally make up the current G20 Troika—met to strengthen ties and align common agendas. “IBSA democracies strive to overcome poverty and are of great geopolitical importance within their regions,” explained Ambassador Eduardo Paes Saboia, Secretary for Asia and the Pacific at Brasil’s Ministry of Foreign Affairs.
Among Brasil’s expectations for the G20 presidency, in addition to the high-level discussions around the three main priorities established for this mandate, is the revitalization and strengthening of the India-Brasil-South Africa Dialogue Forum (IBSA).
At the February 22 meeting, the ministers decided to strengthen the IBSA Fund, a South-South cooperation initiative; and to hold a first meeting of authorities belonging to the forum on food security and nutrition, in alignment with one of the three priorities defined by President Lula for the G20
“It’s about putting the poor in the budget and the rich in income tax,” said Minister Wellington Dias (G20 Brasil)
Brazil’sMinister Wellington Dias for Development and Social Assistance, Family and the Fight Against Hunger—also Coordinator of the Task Force for the G20 Global Alliance against Hunger and Poverty—held a press conference this Wednesday (21) at the G20 headquarters in Brasilia. Dias spoke at the opening of the task force’s first meeting, to be held between February 21 and 23, via videoconference.
The meeting will focus on four reports by international organizations about tackling poverty and hunger—including topics such as sustainable food production, social protection, building resilience, and ways of making international collaboration more effective.
LDCs may enjoy trade benefits for three years after graduation (The Financial Express)
Retaining privileges after LDC graduation gets into focus as commerce ministers and senior trade officials of the World Trade Organisation (WTO) countries start hectic negations on the rules of trade, amid geopolitical tensions raging around. Ngozi Okonjo-Iweala, Director-General of the WTO, delivered her inaugural statement at the session. Dr Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade and chair the conference, also spoke.
The LDCs have sought continuity of duty-free, quota-free market access, waiver in the intellectual property rights and other trade-support measures for at least six years after the graduation.In his written statement, the state minister said: “We sincerely hope that Members will make a decision in favour of a transitional arrangement regarding LDC-specific provisions for the LDCs after graduation.”
Forthcoming tralac Trade Brief: Bangladesh’s upcoming graduation from LDC status, its amended provisions for the protection of Patents and its ongoing use of the WTO TRIPS flexibilities
WTO meeting seeks modest outcomes, with global trade at ‘critical juncture’ (Reuters)
Trade ministers from around the world gathered in Abu Dhabi on Monday for a World Trade Organization meeting that aims to set new global commerce rules, but its chief Ngozi Okonjo-Iweala and delegates sought to curb expectations. The almost 30-year-old global watchdog, whose rules underpin 75% of global commerce, tries to strike deals by consensus, but such efforts are becoming more difficult amid signs that the global economy is fragmenting into separate blocs.
“Let’s not pretend that any of this will be easy,” Okonjo-Iweala said in her opening speech, describing the atmosphere as “tougher” than the WTO’s last 2022 meeting, citing wars, tensions and elections and signs that trade growth will undershoot the organisation’s own estimate.
Thani Al Zeyoudi, conference chair and UAE’s foreign trade minister said in an opening address: “The multilateral trading system with the WTO at its core is at a critical juncture; it is confronting many challenges. “I now ask all of you to show the world that the WTO is alive and well and fully capable to deliver results that matter to people everywhere,” he said.
“I think this week is really about trying to consolidate progress from two years ago and build on where possible, but I don’t think there’s going to be major new breakthroughs in new areas,” said Simon Conveney, Ireland’s Minister for Enterprise, Trade and Employment, referring to the WTO's 2022 meeting in Geneva.
Members urged to keep reinvigorating the WTO to deliver benefits for people through trade (WTO)
The 13th WTO Ministerial Conference (MC13) opened in Abu Dhabi on 26 February with a call to WTO members to seize the full potential of the multilateral trading system so that it delivers for the people it serves, accelerating the green transition and fostering socio-economic inclusion around the world. WTO Director-General Ngozi Okonjo-Iweala urged members to show leadership, flexibility and compromise to deliver important outcomes at MC13 for people and the planet.
New WTO-World Bank project seeks to boost Africa’s participation in digital trade (WTO)
Digital trade presents significant opportunities for economies to boost growth, create jobs and reduce poverty, but more needs to be done to help African economies harness these benefits. This is the objective of a new WTO-World Bank project presented by the WTO Director-General, Dr Ngozi Okonjo-Iweala, World Bank Vice Presidents Pablo Saavedra and Ousmane Diagana and the Trade Ministers of Benin and Rwanda, Shadiya Alimatou Assouman and Jean Chrysostome Ngabitsinze, at an event in Abu Dhabi on the eve of the 13th Ministerial Conference on 24 February.
See also these tralac blogs
The AfCFTA Digital Trade Protocol – clarification of key issues
The Digital Trade Protocol of the AfCFTA and Digitally-Driven Development in Africa
Selected news from the WTO
Ministers approve WTO membership of Comoros and Timor-Leste at MC13
Wave of acceptances of Agreement on Fisheries Subsidies at MC13 advances entry into force
DG Okonjo-Iweala urges trade ministers’ coalition to boost climate action through the WTO
Three-quarters of members mark finalization of IFD Agreement, request incorporation into WTO
WTO, ITC launch USD 50 million global fund for women exporters in the digital economy
Visit tralac’s MC13 resource page for more info.
Related News
Thirteenth WTO Ministerial Conference – Abu Dhabi, February 2024: Resource page
MC13 ends with decisions on dispute reform, development; commitment to continue ongoing talks
The WTO’s 13th Ministerial Conference (MC13) took place from 26 February to 2 March 2024 in Abu Dhabi, United Arab Emirates, chaired by H.E. Dr Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade.
The Ministerial Conference brought together nearly 4,000 ministers, senior trade officials and other delegates from the WTO’s 164 members and observers as well as representatives from civil society, business and the global media to review the functioning of the multilateral trading system and to take action on the future work of the WTO. Initially scheduled for 26-29 February, the Conference was extended in a final push to reach outcomes on the various issues at stake. MC13 closed with the adoption of a Ministerial Declaration setting out a forward-looking reform agenda for the organisation.
Closing ceremony
The closing ceremony was held in the early hours of 2 March.
Remarks by the Chairperson of the Thirteenth Ministerial Conference:
“While we may not have accomplished everything, we set out to achieve, we have delivered some much-needed results. On all other work streams, efforts will continue in Geneva. And let us remember that outcomes can be harvested by the 2 General Council as soon as they are ready – in the interval to the next Ministerial Conference.”
“We all know that international cooperation is not only the best, but often the only way to address the challenges that affect global trade. Delivering the Abu Dhabi package of outcomes is a true testament to the value that Members continue to attach to the Organization and its pivotal role in ensuring an orderly global system of trade rules. Delivering these results also enhances trust and confidence in multilateralism, which is particularly valuable given the testing and uncertain times we find ourselves in.”
MC13 closing speech — Dr Ngozi Okonjo-Iweala
“We convened MC13 against an international backdrop marked by greater uncertainty than at any time I can remember. During the long hours of negotiation here, we saw moments of difficult but rewarding cooperation, as Ministers overcame intense disagreement, engaged in tough discussions, and found common ground. The beauty of the WTO is that each member has an equal voice, but that also comes at a cost. Nevertheless, we are a unique organisation and I think the cost is worth it.”
“[W]e have worked hard this week. We have achieved some important things and we have not managed to complete others. Nevertheless, we moved those pieces of work in an important way. At the same time, we have delivered some milestone achievements for the WTO — and laid the groundwork for more.”
“The path to progress is seldom linear. The WTO remains a source of stability and resilience in an economic and geopolitical landscape fraught with uncertainties and exogenous shocks. Trade remains a vital force for improving people’s lives, and for helping businesses and countries cope with the impact of these shocks.”
Watch the Closing Ceremony here.
Photo credit: © WTO / Prime Vision
Outcomes
The key outcome of MC13 is the Draft Abu Dhabi Ministerial Declaration, where WTO members committed to preserve and strengthen the ability of the multilateral trading system, with the WTO at its core, to respond to current trade challenges. The Ministerial Declaration underlines the centrality of the development dimension in the work of the WTO, recognising the role that the multilateral trading system can play in contributing towards the achievement of the UN 2030 Agenda and its Sustainable Development Goals. It also recognised the contribution of women's economic empowerment and women's participation in trade to economic growth and sustainable development.
A number of ministerial decisions and declarations were also adopted, covering areas ranging from dispute settlement and the work programme on e-commerce, to development-focused agreements (small economies, LDCs etc.) and cooperation in the areas of sanitary and phytosanitary (SPS) measures and technical barriers to trade.
MC13 outcomes: Ministerial decisions and declarations, adopted on 2 March 2024
pdf Abu Dhabi Ministerial Declaration (97 KB)
pdf Accession of the Union of the Comoros - Ministerial Decision (88 KB)
pdf Accession of the Democratic Republic of Timor-Leste - Ministerial Decision (88 KB)
pdf Work Programme on Small Economies - Ministerial Decision (70 KB)
pdf Dispute Settlement Reform - Ministerial Decision (70 KB)
pdf Work Programme on Electronic Commerce - Ministerial Decision (69 KB)
pdf TRIPS Non-violation and Situation Complaints - Ministerial Decision (64 KB)
Other Documents and Submissions
A collection of other documents and communications from WTO members were published prior to, and during, MC13. These cover an array of areas both existing and new to the WTO’s negotiating agenda, including accessions, agriculture, cotton, environmental issues, plastics, least developed country (LDC) and development-related issues, investment facilitation, and submissions from regional and political country groups, among other things.
tralac Analysis
What Happened at the WTO’s Thirteenth Ministerial Conference?
The results of the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) – held between the 26th of February and midnight on the 2nd of March in Abu Dhabi – were mixed. While there were some notably positive outcomes, MC13 failed to produce outcomes on three of the most important agenda items: agriculture, fisheries subsidies, and dispute settlement reform.
What MC13 Achieved for Least Developed Countries
In a communication dated 12 January, the LDC group listed their priorities going into MC13. Aside from LDC graduation transition matters, specific priorities included agriculture and food security, the WTO Agreement on Fisheries Subsidies, the moratorium on e-commerce and equality in accessibility to dispute settlement procedures. MC13 did not deliver much in the way of these matters – no agreement was reached on agriculture, fisheries phase two negotiations, or dispute settlement (where they agreed to continue work on negotiations rather than produce a draft agreement). That said, some progress has been made on the LDC graduation transition process (though modest), and special and differential treatment for LDCs.
This Trade Brief provides the background to, and also an update on an important aspect of Bangladesh’s graduation from least-developed country (LDC) status, scheduled for 26 November 2026. The specific focus is on the issue of providing protection for pharmaceutical patents, taking into account the history of the pharmaceutical industry in Bangladesh, and the significant role it plays in its economy. It reports on a significant new development, namely the adoption of the Patents Act of 2023. It explains how Bangladesh’s proposed course of action fits in with the applicable multilateral context, especially the WTO TRIPS Agreement, and flags the possibility of challenges which may arise.
What’s on the Cards for MC13? Reform, E-Commerce, Fish Subsidies and more
The World Trade Organisation’s (WTO) 13th Ministerial Conference (MC13) has begun in Abu Dhabi, UAE. The list of topics and deliverables to be covered on the agenda is overwhelming – if not in number, then at least in complexity. The Director-General of the WTO, Dr Ngozi Okonjo-Iweala, has insisted that no one agenda item supersedes the others in importance, stating that all agenda items “will affect real people”. One can summarise eight key areas of discussion on the agenda: these areas include e-commerce, fisheries subsidies, investment facilitation, agriculture, intellectual property (IP), the environment, development and LDC graduation, and – highly anticipated – WTO reform (including dispute settlement reform).
The WTO Dispute Settlement Impasse: What is happening?
The WTO’s Understanding on Dispute Settlement (DSU) provides World Trade Organisation (WTO) members with a legal framework for resolving trade disputes that arise between them when implementing WTO agreements. On 11 December 2019, however, the Appellate Body (AB) of the WTO ceased to function. The absence of the AB from the WTO dispute settlement system means that an essential feature of the multilateral trade regime embodied in the WTO, is in limbo. An appeal by the losing party in a WTO trade dispute against a panel report decided in favour of the winning party will remain unresolved and unenforceable, since there is no AB to hear new appeals.
In the News
MC13 ends with decisions on dispute reform, development; commitment to continue ongoing talks
WTO members concluded the 13th Ministerial Conference (MC13) in Abu Dhabi on 2 March with the adoption of a Ministerial Declaration setting out a forward-looking, reform agenda for the organization. Ministers also took a number of ministerial decisions, including renewing the commitment to have a fully and well-functioning dispute settlement system by 2024 and to improve use of the special and differential treatment (S&DT) provisions for developing and least developed countries (LDCs). They also agreed to continue negotiations in all areas where convergence was elusive at MC13.
Members of three environmental initiatives share plans for next phase of work at MC13
Co-sponsors of the three environmental initiatives at the WTO presented on 27 February, at the 13th Ministerial Conference (MC13) in Abu Dhabi, the next steps they are taking to advance work on plastics pollution, environmental sustainability, and fossil fuel subsidy reform, building on the extensive analytical work and experience sharing they have conducted since MC12.
“I welcome the substantive work carried out by the initiatives over the last two years, with the support of stakeholders and experts in the environment community. They are an example of how ambitious WTO members are finding innovative ways to reinforce the WTO's deliberative function to address 21st century challenges,” DG Okonjo-Iweala said in remarks released to mark the launch of the MC13 outcomes by the three environmental initiatives — the Dialogue on Plastics Pollution and Sustainable Plastics Trade (DPP), the Trade and Environmental Sustainability Structured Discussions (TESSD), and the Fossil Fuel Subsidy Reform (FFSR) Initiative.
DG Okonjo-Iweala on MC13: “We are going to get it done”
The Director-General said that while she was encouraged by members’ stamina and passion in advancing the MC13 preparations, “frankly speaking, we are still not where I would have wished us to be at this point in our preparatory processes…. But I remain positive because of the relatively positive tone in the negotiations,” she said. “This gives me hope that we’ll get more convergence in our negotiating positions.”
“The importance that we all attach to sending a strong, meaningful, and responsive political message from ministers is evident – particularly given the difficult period we are currently living in,” Ambassador Molokomme said. “Let us all keep in mind what is at stake, as we finalize the MC13 draft Declaration.”
DDG Ellard highlights members’ negotiating priorities and WTO reform issues ahead of MC13
DDG Ellard observed that a key priority for MC13 is to build on the achievements of the previous June 2022 Ministerial Conference, MC12, by concluding the second wave of negotiations on fisheries subsidies and ensuring the entry into force of the Agreement on Fisheries Subsidies. DDG Ellard said that other negotiating priorities include dispute settlement reform and extending the moratorium on the imposition of customs duties on electronic transmissions, which will expire if members do not renew it at MC13. In addition, members are considering whether to extend the TRIPS Decision on COVID-19 vaccines adopted at MC12 to COVID-19 diagnostics and therapeutics. She added that the negotiations on agriculture continue, with many members pointing to food security as an important priority.
With respect to WTO reform, she said that everyone agrees that the WTO needs reform, but members' views on what needs to be improved differ. She outlined three broad areas of reform: (i) negotiating new rules and revising the existing rules; (ii) reinvigorating the deliberative function of the organization; and (iii) improving the way the Secretariat assists members. She noted that many members are interested in reforming the regulation of subsidies, although their priorities differ. While some members concentrate on addressing state intervention in support of industrial sectors, some developing members seek policy space to promote industrialization.
DG Okonjo-Iweala: “Our work is cut out for us” on achieving concrete MC13 outcomes
In her capacity as Chair of the Trade Negotiations Committee, the Director-General welcomed the results from the Group of 7 trade ministers meeting in Osaka, Japan, on 29 October, which also included the participation of a number of developing country trade ministers.
The G7 trade ministers “were pleased about the results and it was heartening to hear ministers strongly reiterate the calls we had just heard at the SOM for us to work for concrete outcomes and a successful MC13,” she said. “All of them were desirous to have a successful MC13 but they acknowledged that, on some of the dossiers we have in front of us, differences still remain and have to be resolved... So, we have our work cut out for us. With about four months to MC13, every day must count to effectively utilize the political guidance and support we sought and got from senior officials and ministers to substantially advance our work towards concrete results at MC13.”
Senior Officials Meeting paves way for progress on deliverables at MC13
A two-day meeting of senior trade officials concluded at the WTO on 24 October with encouraging signs that negotiators in Geneva will have the political backing to achieve outcomes at MC13. The Chair of the General Council noted that the Senior Officials Meeting was the fourth station in preparations for MC13. The next stations will be a General Council meeting in early November, and the end of year meetings of the General Council and the Trade Negotiations Committee. “We hope that, by that time, we can flesh out the matters that have been endorsed and on which political guidance has been received,” Ambassador Molokomme said. “So, as you go back to capital and brief your ministers, I hope that our Senior Officials Meeting illustrated the urgent need for capital engagement at all levels — to ensure success at MC13 and beyond. We all know what is at stake.”
The chairs’ summary of the Senior Officials Meeting as well as oral reports from the facilitators can be found here.
More news from the WTO
New WTO-World Bank project seeks to boost Africa’s participation in digital trade
DG Okonjo-Iweala urges trade ministers’ coalition to boost climate action through the WTO
Three-quarters of members mark finalization of IFD Agreement, request incorporation into WTO
WTO, FIFA strengthen cotton partnership, call for increased investment in African cotton
DDG Hill emphasizes role of trade in fostering access to digital finance
Fisheries subsidies chair circulates draft text to ministers as basis for MC13 negotiations
Agriculture negotiations chair circulates revised text, aiming for outcome at MC13
TRIPS Council finalizes preparations for MC13
Chair introduces draft text for agriculture negotiations in run-up to MC13
Plastics Pollution Dialogue finalizes text for MC13 Ministerial Statement
Members make progress on trade and environmental sustainability outcomes for MC13
WTO members examine proposals to deepen discussions on trade and environment
WTO members address trade and development dimension of cotton, potential MC13 outcome
Agriculture negotiators discuss new proposals submitted by WTO members
Members to continue dialogue on extending TRIPS Decision to therapeutics and diagnostics
Small business group discusses access to information, capacity building, MC13 plans
Working group on food security moves closer to finalizing report and recommendations
DDG Paugam: Trade is becoming more political, more sustainable, more traceable
WTO members review farm policies, discuss food security, agri-food system resilience
Members advance discussion on challenges in SPS Agreement implementation ahead of MC13
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Premium car market outlook murky as South Africans continue to hunt for Asian bargains (Engineering News)
The South African new-car market has been shifting steadily over the last few years as consumers continue to battle persistent economic headwinds. Times are tough. Interest rates, living costs, fuel prices and new-vehicle price tags are all high, driven by not only international turmoil, but also poor management of the domestic economy, especially in terms of power supply and logistics channels such as ports and rail infrastructure.
South Africans have reacted by opting for smaller and cheaper cars, as well as cars offering more extras and luxury compared with others in the same price band. Chinese brands have been the big winners here, as well as Japanese small-car importer Suzuki.
Despite its origins, Suzuki brings in most of its vehicles from India – the global hub for small-car plants. Suzuki, currently at number three in the domestic car market, has edged out its competitors one by one and now has Volkswagen, a local vehicle manufacturer, in its sights.
Kenya, UAE seal comprehensive economic partnership deal (The East African)
The United Arab Emirates (UAE) and Kenya have concluded a comprehensive economic partnership agreement (Cepa), UAE Minister of Foreign Trade Thani Al Zeyoudi said on Friday. Kenya, East Africa’s largest economy, was one of the first African countries with which the UAE launched bilateral trade deal talks in 2022 as part of a strategy to diversify its oil-based economy. Non-oil trade between the Gulf state and Kenya reached $3.1 billion in 2023, up 26.4 percent on 2022, Al Zeyoudi said in a post on social media platform X.
“We will now look to expand across sectors from food production and mining to technology and logistics,” he said of the agreement.
Uganda-EU Forum to focus on job creation, standards (The Independent Uganda)
The European Union-EU has reiterated its demand for standards in the imports from Uganda and other countries because the authorities must ensure the safety of the public. Amidst this vow, however, the EU says it will continue working with the Ugandan authorities and the private sector to ensure that the country meets the demands of the market.
For close to ten years, the EU has intensified standards, especially on fresh foods, like fruits and vegetables as well as cut flowers, with measures including blocking consignments. The Ugandan government also suspended the exportation of some agricultural products to the EU until the farmers, processors, and exporters met the required standards. Ambassador Jan Sadek, the Head of the EU Delegation in Uganda, said the demands of the people cannot be compromised.
The EU is also due to implement a policy where the region will not allow coffee from Uganda that is produced from areas that were forested by 2020, as part of efforts towards fighting degradation. Sadek says the EU is working with the local authority to ensure that Uganda beats the 2025 implementation deadline without disruptions in the coffee industry. He was speaking ahead of the 3rd Uganda-European Union Business Forum slated for early next month in Kampala.
Tanzania’s SGR connecting with Burundi, DR Congo gets Sh230 billion AfDB funding (The Citizen)
Tanzanian government has, on Friday 23 February, 2024, signed a Sh231.3 billion ($91.76 million) financing agreement with the African Development Bank (AfDB) to start the construction of a modern railway that seeks to connect it with the neighbouring countries, Burundi and Democratic Republic of Congo (DRC). The project is part of the Standard Gauge Railway (SGR) which stretches from the port of Dar es Salaam to connect Tanzania with the neighbouring countries through the central corridor of transportation.
The concessional loan targets to finance construction of sections six and seven of the modern railway, from Tabora to Kigoma and from Uvinza to Malagarasi. According to Dr Mwigulu Nchemba, the Minister for Finance, the construction of the 567 kilometres will be implemented in the space of seven years, starting from2024 to 2031. “The goal of this project is to connect Tanzania with Burundi through a modern railway from Malagarasi to Musongati and in the future, connect with DRC from Malagarasi,” said Dr Nchemba during the signing ceremony.
Minister of Finance and National Planning, Hon. Situmbeko Musokotwane held a high-level session of the Public-Private Partnership (PPP) Council of Ministers of Zambia, along with the United Nations Conference on Trade and Development (UNCTAD) and the United Nations Economic Commission for Africa (UNECA) to discuss the outcomes of a four day workshop intended to build capacities of government officials and to mobilise finance for Zambia’s sustainable development.
The PPP Council of Ministers was preceded by a two-part capacity building workshop on PPPs in Zambia. Ms. Eunice G. Kamwendo, Director, UNECA Sub-Regional Office for Southern Africa (SRO-SA) pointed out that the imperative for prioritizing PPPs in infrastructure development is underscored by the pressing needs across Africa. She said the African Development Bank estimated an annual infrastructure requirement of $130–170 billion and a staggering financing gap ranging from $68–$108 billion in Africa.
She emphasized that to address these challenges Zambia needed a strategic engagement with the private sector to develop robust PPP framework and bridge the infrastructure gaps that hinder progress and prosperity. She noted that the workshop presented, “a unique opportunity to strengthen stakeholders’ capacities to utilise PPPs for innovative financing and infrastructure development to support industrialisation in selected African countries”.
Zambia pushes for deal on unresolved debt [Business Africa] (Africanews)
Zambia still has nearly $7 billion of debt on its books pending resolution. That is despite a deal with bilateral lenders last year which treated over $6 billion. The $7 billion is owed to bondholders and commercial banks. The southern African country’s quest for debt relief has been long and exhausting. A deal with bondholders to restructure about $3 billion of debt last October was rejected by the official creditors. Co-led by France, China, and South Africa, they argued that the terms Lusaka agreed with bondholders did not match the concessions the southern African country won from the official lenders.
Cabinet approves Egypt’s accession to membership of Afreximbank’s Fund for Export Development in Africa (EgyptToday)
The Cabinet approved, in its meeting chaired by Mostafa Madbouly, the project of the President’s decree regarding Egypt’s accession to the membership of the African Export-Import Bank’s (Afreximbank) Fund for Export Development in Africa (FEDA). The establishment of the fund comes to implement two key axes of the current strategy of the bank, which are export development and manufacturing, and enhancing intra-continental trade.
The accession of African countries to the fund aims to support small and medium-sized projects operating in export value chains, increase exports of goods and services with added value, support industrial infrastructure, and increase intra-African trade, among other numerous objectives.
Burkina Faso suspends export permits for small-scale gold production (The East African)
Burkina Faso’s military junta has suspended the issuance of export permits for artisanal and semi-mechanised gold and other precious commodities with immediate effect, it said. “This suspension follows the need to clean up the sector and reflects the government’s desire to better organise the marketing of gold and other precious substances,” it said in a statement on Tue. It did not say how long the suspension would be in place.
Gold is Burkina Faso’s main export, accounting for 37 percent of total exports in 2020, and mining is a leading source of jobs. But a rampant Islamist insurgency and political instability has hindered exploration and dented gold output in recent years, causing several mines to shut down and others to produce less.
Beijing’s African Gambit Runs Into Trouble (Forbes)
Beijing has decided that it needs to make concessions within its Belt and Road Initiative (BRI) in Africa. The arrangements always aimed to give China ultimate dominance — in Africa and elsewhere along the BRI. The problem for Beijing is that the underlying plan is revealing itself a little too fast and a little too thoroughly to keep African states enthusiastic. China’s leaders simply cannot afford to let these African states see the tremendous disadvantages that are the ultimate end of the scheme, at least not yet.
China-Africa trade news has raised a red flag. Total trade between China and its African partners in the BRI – most notably South Africa, Angola, Nigeria, the Democratic Republic of Congo, and Egypt – increased last year only a modest 1.5% to the equivalent of $281.1 billion. Most of the growth came from a strong 7.5% surge in Chinese exports to these African countries. The dangers implicit in Beijing’s plans reveal themselves in the 6.7% drop in African exports to China. Africa’s trade deficit with China jumped 14% from $46.9 billion in 2022 to $64 billion last year.
Under conventional trade circumstances, these figures might not please the Africans, but against the backdrop of Beijing’s BRI, the news carries a deeper, more revealing meaning, and one that Beijing has little desire to see clarified.
Debate on ditching CFA begins as Burkina Faso, Mali, Niger forge new path (Al Jazeera)
In September, Niger along with fellow ECOWAS members Burkina Faso and Mali formed a military alliance called the Association of Sahel States (AES). Four months later, the trio announced their withdrawal from the larger bloc for “illegal, illegitimate, inhumane and irresponsible sanctions” it imposed on them after coups. This month, reports emerged of a possible parting with their currency, the West African franc (CFA).
“Perhaps everything we’ve done has surprised you, hasn’t it?” Captain Ibrahim Traore, leader of the Burkinabe transitional government, said in an interview in February. “More changes might still surprise you. And it’s not just about currency. We will break all ties that keep us in slavery.”
Within days, his Nigerien counterpart, Abdourahmane Tchiani, confirmed that a major monetary shake-up could be in the offing. “Currency is a sign of sovereignty. … The AES member states are engaged in the process of recovering their full sovereignty. It is no longer acceptable for our states to be France’s cash cow,” he said in an interview with the state broadcaster. Their statements made headlines across a continent where criticism of the continued use of the CFA, a remnant of the French colonial system, is on the rise.
Editorial: Shaping the future of democracy and trade in West Africa (The Business & Financial Times)
Ensuring peaceful, credible, and inclusive polls is not just about choosing leaders; it is about Ghana taking a stand for stability in a turbulent sub-region. Moreover, peaceful elections will serve as a powerful signal to the wider continent, showcasing the AfCFTA’s potential to drive economic growth and prosperity across Africa.
Ex-ECOWAS President Urges Leaders To Lift Sanctions On Mali, B/Faso, Niger (News Agency of Nigeria)
Dr Mohamed Ibn Chambas, the former President of the ECOWAS Commission, has appealed to ECOWAS leaders to lift sanctions imposed on Mali, Burkina Faso, and Niger following recent military coups in these countries. He stressed the importance of unity and called on the military leaders of the mentioned nations to withdraw their threats of exiting the sub-regional bloc.
Speaking ahead of the ECOWAS Summit scheduled for Abuja during the weekend, Chambas urged all stakeholders in the West African sub-region to heed the recent call from former Nigerian Head of State, Gen. Yakubu Gowon (rtd), to end conflicts and unite the people in the area. Chambas emphasised the need for ECOWAS to come together, highlighting that the region is stronger united than divided. He lauded Gowon’s appeal for lifting sanctions and encouraged ECOWAS Heads of State to reach out to the affected countries for reconsideration.
AfCFTA Trading Company must have its own transport fleet (GhanaWeb)
Chairman of McDan Group, Dr. Daniel McKorley has encouraged the establishment of air and land transport fleet for the AfCFTA Trading Company across the continent. According to him, the trade pact needs its own ships, cargo planes, and warehouses across the continent to help facilitate trade among member states. He made this known at a meeting to discuss guided trade and the AfCFTA Trading Company.
McDan also indicated the importance of transportation for AfCFTA’s growth, adding that, over 25 percent of intra-African trade gains in services would go to transport alone, and nearly 40 percent of the increase in Africa’s service production would be in transport. “AfCFTA is offering a lot of opportunities because it also has to do with air, such as intra-country air connections at cargo airports. The same thing that affects maritime also affects the air like the planes, airport, air insurance and legal regulations,” McDan said.
“So, what is going to happen is that because there is an increment in demand, supply will have to increase to meet the demand. The maritime sector has a role to play in this, making sure that all these benefits are attractive to Africans. That is why it is important for AfCFTA to own its ships, cargo planes and warehouses,” he added.
AfCFTA: Upcoming Protocol on Women and Youth in Trade a chance to empower women (Africa Renewal)
The protocol provides an innovative approach to inclusivity of trade agreements by providing specific provisions towards enhancing women’s participation in trade to fulfil the core objectives of the trade agreement. This complements previous approaches that focus primarily on socio-economic concerns as a goal. Once adopted, the protocol will offer an innovative and sustainable approach of improving the competitiveness of women in their various trade roles while serving to advance the global discourse on addressing gender considerations in trade agreements.
The Beijing Platform for Action, adopted in 1995 at the Fourth World Conference on Women, remains the main framework in the global effort to advance gender equality. Its focus on crucial areas such as the role of women in the economy and their participation in leadership and decision-making aligns seamlessly with the objectives of the AfCFTA. In this quest, the Maputo Protocol—a groundbreaking legal instrument aimed at promoting and protecting women’s rights in Africa—serves as a complementary force to the AfCFTA. Together, they form a formidable set of frameworks that can address the unique challenges faced by women on the continent.
AfCFTA: NASS says continuous research necessary to guide policy makers (TVC News)
The National Assembly says continuous research on different aspects of the African Continental Free Trade Area, AfCFTA, is necessary to guide policy makers, including relevant committees of the parliament. This came to the fore at a roundtable on the impact of AfCFTA on the Nigerian Economy put together by the National Institute for Legislative and Democratic Studies, NILDS.
At a time global economies face turbulence, a gathering of experts seeks to harness available technical and non-technical resources to promote discussion on critical socio-economic issues in Africa. The leadership of the National Assembly and other speakers stress the need for continuous research to assist in legislations that will further harness the gains of AfCFTA The consensus among participants is that intra-African trade should be further encouraged to facilitate trade in manufacturing and industrialisation as a way of enhancing Africa’s economies, Nigeria inclusive.
Bold ambitions and uncertain paths in the African Union’s new ten-year development plan (Businessday Nigeria)
The African Union (AU) has set a bold target of producing 100,000 PhDs from Africa over the next decade. The AU stated that twenty percent of the output should come from STEM fields. The target is embedded in the Second Ten-Year Implementation Plan (STYIP) of the AU, focused on accelerating the implementation of the vision of “Africa We Want.”.
The AU’s Agenda 2063: pdf Second Ten-Year Implementation Plan (2024-2033) (6.58 MB) , or STYIP, was launched on February 13 with its development agency, the New Partnership for Africa’s Development (NEPAD). AU hopes there will be a significant increase in enrolment rates in higher education across Africa in the university and technical and vocational education (TVE) sectors. It noted the lack of employability skills across African higher education but plans to reverse it.
“I underscore that the effective operationalization of AMA and ending NTDs in Africa is a multifaceted task that requires strong health systems and a comprehensive approach that involves both leaders and the communities they serve,” stated H.E. Amb. Minata Samate Cessouma, Commissioner for Health, Humanitarian Affairs and Social Development African Union Commission The African Union Commission (AUC), in collaboration with the Governments of the Republic of Ghana, the Republic of Rwanda and the United Republic of Tanzania convened a High-level Working Breakfast on Operationalizing the African Medicine Agency (AMA) and Securing Africa’s Neglected tropical diseases (NTDs) free future.
AU took important action cybersecurity its 2024 summit more needed (Chatham House)
Africa witnessed a spate of cyberattacks in 2023, against African Union Commission (AUC) systems, Kenyan government data systems, and Nigerian election infrastructure among others. The attacks seem to have served as a wake-up call for the AU, driving its Peace and Security Council (PSC) to make cybersecurity a key agenda point at this year’s summit, held in Addis Ababa.
Real achievements were made: African heads of state addressed a number of cybersecurity related matters – the first notable action on the issue since the AU created its pdf Digital Transformation Strategy for Africa (DTS) (1.80 MB) in February 2020.
At the summit the AUC was directed to expedite the development of a Continental Cybersecurity Strategy. A continental child online protection policy was also adopted, and a Common African Position agreed on the application of international law in cyberspace – a significant development. But the pdf Malabo Convention (13.16 MB) , Africa’s ambitious continental cybersecurity agreement, remains unratified by most AU countries, limiting its credibility. Without wider ratification, and better cooperation on cyber diplomacy, member states may find it difficult to develop the coherent African cybersecurity agenda that is needed.
Trade and logistics experts from DHL Group, along with other leading trade experts, will be on hand at the 13th World Trade Organization (WTO) Ministerial Conference to share insights into how the world can foster sustainable and inclusive trade. In Abu Dhabi, DHL Group and the International Chamber of Commerce (ICC), will host a side event together with its partners to present the four key takeaways from the recent GoTrade Summit, held in late 2023 in Bonn, Germany, and which are documented in the comprehensive 2023 GoTrade Summit Report, recently released. DHL Group hopes that the Report and its four key takeaways will serve as a basis for discussions at WTO MC13.
Global trade is at a critical juncture-and we can’t take it for granted, WTO meeting chair warns (Fortune)
The greatest disruption in business occurs when cracks emerge in the systems that we otherwise take for granted. The World Trade Organization (WTO) and the treaties that make up the bedrock of international commerce fall firmly into this category. For decades, these international agreements have provided a baseline level of certainty to businesses, investors, and consumers. Today, that system is being buffeted by geopolitical headwinds, powerful political forces, and a trade landscape being redefined by new technologies. That makes certainty more important than ever.
Looking ahead to the conference, I see four key priorities – and private sector engagement is key to all of them. First, there are immediate deliverables on which consensus among the membership is difficult but achievable. To name just one example, the moratorium precluding customs duties on electronic transmissions is up for renewal. Second, it is important the ministerial conference provides a roadmap for the WTO’s future work. Climate change, geopolitical tensions, and a new wave of industrial subsidies are disrupting the status quo. Digitalization is reshaping both how trade is done and what is traded. The third goal of the ministerial conference is facilitating dialogue. As a trade minister, I can attest to the rarity of opportunities to meet with our counterparts for in-depth discussions about the most pressing trade issues.
Other WTO news:
WTO conference faces challenges as big players turn inward (ING Think)
Reform the WTO to make it fit for the 21st century (Financial Times)
Shifting the course of Global Trade at 13th Ministerial Conference (CNBC Africa)
WTO Ministerial Conference in Abu Dhabi an opportunity to strengthen trade and health agenda (The Association of the British Pharmaceutical Industry)
The WTO’s FDI Challenge by Karl P. Sauvant (Project Syndicate)
G20: FAO Director-General appeals for peace, right to food and global governance reforms (FAO)
QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO), appealed for peace, recognition of the right to food, and reform of multilateral institutions as cardinal imperatives during the G20 Foreign Affairs Ministers Meeting held on Wednesday and Thursday in Brazil.
“FAO calls for the prioritization of actions that promote food security globally to achieve the Four Betters: better production, better nutrition, a better environment, and a better life, leaving no one behind,” Qu said at the first session, focused on the G20’s role in dealing with conflicts and ongoing international tensions.
“We need a global governance system that is fit for purpose, works in an efficient, effective, and coherent manner, is accountable to its members, and fully aligned and committed to achieve all the SDGs,” he said at the second session.
See also: G20 Foreign Ministers’ Meeting (Summary) (Ministry of Foreign Affairs of Japan)
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Innovative interventions needed to turn around underperforming growth trajectory (Engineering News)
Against the backdrop of a profoundly challenging macroeconomic environment where South Africa’s economy is expected to continue underperforming, averaging at 1.6% growth in the next three years, innovative interventions are needed to turn the current trajectory around, said the Agricultural Business Chamber of South Africa (Agbiz) chairperson Francois Strydom.
The 2024/25 Budget presented a valuable opportunity to do so, but was largely silent on incentives for business, he said. “The agricultural sector, while having performed broadly positively in the past few years, is confronted with various challenges, with energy security, logistics and declining municipal service delivery challenges front and centre,” said Agbiz CEO Theo Boshoff. “South Africa desperately needs to upscale the incentives provided to communities that meet their own energy, infrastructure, and service delivery needs,” Boshoff emphasised.
See also:
Private rail network investment expected to focus on bulk freight at first (Engineering News)
Government raises US$3.3 billion to support climate change initiatives (SAnews)
Uganda’s exports to Europe now overtake imports (Monitor)
Uganda now exports more than it imports from the European Union (EU), which commands a favourable balance of trade position. The balance, details indicate, has been due to rising coffee exports, while Uganda has seen a significant reduction in machinery imports from EU countries.
Ambassador Jan Sadek, the EU head of delegation to Uganda, said out of the 1.5b euros worth of export between the two markets, Uganda has accrued 800m euros (about Shs3.3 trillion) in export value compared to 700m euros (about Shs2.9 trillion) registered by the EU. This means for the first time in recent history, Uganda has been able to deliver more exports to the largest single market in the world with a population of approximately 450 million people, and a GDP of 16 trillion euros.
“We are proud to see that there is a balance in trade,” said Amb Sadek ahead of the third Uganda-EU Business Forum, which seeks to facilitate structured collaboration between the EU and Uganda’s private sector and public actors.
AfCFTA offers ‘significant’ opportunities for Morocco’s automotive industry - Report (The North Africa Post)
The African Continental Free Trade Area (AfCFTA) agreement offers four significant opportunities to the Moroccan automotive sector, which is among the best developed on the continent, especially for its affordable inputs, finished exports, advantageous labor, and reduced customs tariffs, the 9th edition of the CFC Africa Insights report outlined.
The report, titled “AfCFTA: unlocking the potential of intra-African trade,” suggests that increased trade integration with African partners, particularly in North and West Africa, could lead to economies of scale. Morocco is well-positioned to benefit from the establishment of cross-border value chains, while the sector also holds promise for economies across the region.
Under the AfCFTA, the Moroccan automotive sector stands to gain two key opportunities, namely access to low-cost inputs and an outlet for finished goods exports.
Domesticate AfCFTA to Boost Commerce, Halt Naira Fall, NILDS DG Urges FG (This Day)
The Director General of the National Institute for Legislative and Democratic Studies (NILDS) Prof. Abubakar Sulaiman, has urged the federal government to domesticate and leverage on the African Continental Free Trade Area (AfCFTA) policy to address the current economic challenges.
He explained, “Today the country is not at a crossroads, we have gone beyond the crossroads; when you look at the foreign exchange earnings, forex, the dwindling fortune of the naira and unemployment across the globe especially as it related to Nigeria. “It is now time for us to put up our thinking cap; how do we harness resources and our markets, how do we ensure domestication of AfCFTA and take advantage as done by other countries.
In the heart of Nigeria’s Ekiti State, a groundbreaking initiative is taking shape – the Ekiti Knowledge Zone (EKZ), a bold step to transform the region into a hub for digital innovation and knowledge economy. The African Development Bank has committed $80 million in loan financing for this state-led pioneering special economic zone project, designed to foster linkages between educators, researchers, innovators, entrepreneurs, and industries, all within one location.
In April 2023, the Federal Government of Nigeria conferred “free zone” status to the project under the Nigeria Export Processing Zones Authority (NEPZA) Act. This designation unlocks a plethora of incentives for private investors, including rent-free land, tax holidays and import/export duty waivers, fueling an environment ripe for investment and innovation.
African Development Bank and OCP Group provide $188 million for green investment in Morocco (AfDB)
The African Development Bank and the OCP Group signed three loan agreements in Rabat totalling $188 million to help fund the OCP Group’s Green Investment Program supplying clean drinking water to the towns around three new desalinisation plants.
The construction of the new modular seawater desalination plants will be funded by the first loan of $150 million from the African Development Bank and the second loan of $18 million from the Canada – African Development Bank Climate Fund (CACF). The third loan of $20 million from the Clean Technology Fund (CTF), will be used to fund storage systems for energy generated from renewable sources, supplying the desalination plants and other OCP Group production units.
Powering the One Africa Market through the digital financial inclusion of small traders (African Business)
Opinion by Wamkele Mene and Lacina Kone
In 2024, Africa is poised for a historic transformation as we accelerate the implementation of the African Continental Free Trade Area (AfCFTA). This landmark agreement holds the promise of uniting diverse nations, spurring economic growth, and reducing dependence on external markets. However, amid this optimism, the plight of cross-border traders, many of whom are women and youth, have come into sharp focus. To truly understand the daily hardships faced by these traders, the AfCFTA, Smart Africa, and the Better Than Cash Alliance’s Secretariats conducted visits to pivotal border locations.
One critical hindrance to financial inclusion and digital trade is the lack of interoperability of digital payment systems, particularly for micro and small traders who dominate Africa’s economy, especially at land borders. Additionally, the recurring use of third currencies in cross-border trade payments places a significant burden on national foreign exchange reserves, leading to delays in settlements and diminishing profits for small and micro-merchants. Enter the Pan-African Payment and Settlement System (PAPSS), a groundbreaking initiative designed to address these challenges and facilitate fast, seamless payments for intra-African trade.
In partnership with the AUC, Smart Africa, and the Better Than Cash Alliance, the AfCFTA has issued a call to action on Digital Financial Inclusion for the Success of the One African Market. The call to action focuses on five key pillars that will be instrumental in Africa’s governments readiness to build inclusive digital economies for the One Africa Market: Government leadership, supportive regulations, fostering universal trusted usage, promoting regional collaboration, and championing financial equality. More than a trade agreement, the AfCFTA it is a gateway to economic empowerment, gender equality, and youth development.
Transition to the green economy offers great opportunities for women, but problems remain (Engineering News)
The move to a green economy is a move to a more feminine economy, affirmed KD Strategies founding director Katnisha Singh on Thursday. She was participating in a panel discussion at the Women in the Green Economy breakfast, a function of the Africa Green Economy Summit 2024, being held in Cape Town. “This is our time!”
The green economy was not an alternative to the mainstream economy; it would be the mainstream economy, she asserted. The green economy allowed, especially in Africa, the redefinition of industrialisation. It was a travesty that Africa had not yet experienced development, and that 70% of the continent’s population still lived in poverty.
“Women, by far, make the most energy decisions in the home, particularly in low-income homes,” pointed out another panellist, City of Cape Town Energy Efficiency and Renewable Facilitation Manager Mary Haw. But very few women were involved in energy decisions at high levels.
SADC Business Council to Host Major Investment Forum Focused on Angola and Regional Growth (AfDB)
The SADC Business Council will host the Southern African Industrialisation Forum from 26-27 February 2024 at Sandton Hotel, in Johannesburg, South Africa. The prestigious two-day event will convene top government and business leaders to shape industrial priorities and investment opportunities focused largely on Angola with the theme focus, Human and Financial Capital: The Key Drivers for Sustainable Industrialisation in the SADC Region.
With Angola as the centrepiece, forum conversations will cover human capital development, trade and investment facilitation, infrastructure development, and targeted high-potential sectors like automotive, pharmaceuticals, tourism, renewable energy and transport and logistics.
Free movement in west Africa: three countries leaving Ecowas could face migration hurdles (The Conversation)
For Niger, Mali and Burkina Faso, a recent decision to withdraw from the Economic Community of West African States (Ecowas) has thrown up questions about how they will navigate regional mobility in future. Ecowas covers a variety of sectors, but migration is a major one. The bloc’s protocols since 1979 have long been seen as a shining example of free movement on the continent. They gave citizens the right to move between countries in the region without a visa, and a prospective right of residence and setting up businesses.
Niger, Mali and Burkina Faso have much to lose if their departure from Ecowas curtails mobility. But it is likely that informal mobility will continue anyway.
ARDA, Stakeholders To Build Intra-Africa Oil & Gas Industry (DailyGuide Network)
The President of the African Refiners and Distributors Association (ARDA) Dr. Mustapha Abdul-Hamid, has reiterated ARDA’s commitment to work with the Organization of the Petroleum Exporting Countries (OPEC), the African Petroleum Producers’ Organization (APPO) and the African Union Commission (AUC) to deliver a sustainable intra-Africa oil and gas industry.
Dr. Abdul-Hamid said the industry would be focused on delivering cleaner fuels and value-added petroleum products via a lower-carbon footprint. He was speaking as a co-chair at the third high-level meeting of the OPEC-Africa Energy Dialogue held on February 19, 2024, in Cairo, Egypt. Dr. Abdul-Hamid also shared ARDA’s objective of developing a consolidated register of investable energy infrastructure projects that would be shared at the first-ever ARDA Investment Forum to be held during the 2024 ARDA Week in Cape Town from 22-26 April 2024.
Africa programme launches ‘A Continent in Conversation’ series at AU summit (Chatham House)
The Chatham House Africa Programme partnered with the United Nations Development Programme (UNDP) and Institute of Peace and Security Studies (IPSS) to hold the inaugural policy dialogue of the ‘A Continent in Conversation’ series on 15 February at the 37th Summit of the African Union in Addis Ababa.
‘A Continent in Conversation’ is a series of events that will run throughout the year. It will bring together political and thought leaders from across Africa to discuss how the continent and individual countries respond to global geopolitical trends including climate change, conflict, migration, international trade and technology. The series is intended to foster a deeper understanding of the continent’s role in shaping a sustainable global future in the context of international political multipolarity and Africa’s increasing economic connectedness and importance.
Red Sea crisis sees China’s brisk business in Africa waver under high shipping costs amid Houthi attacks (South China Morning Post)
Avoiding attacks in the Red Sea has raised the cost of business for Chinese firms in East Africa, which borders the embattled waterway, and shaken the production of companies that cannot afford the more costly alternative transport options, analysts said.
“Chinese companies with a substantial presence in African markets are facing heightened uncertainties and complexities as they navigate these disruptions, prompting a re-evaluation of their shipping strategies and contingency plans to mitigate the impact on their operations,” said Gary Lau, chairman of the Hong Kong Association of Freight Forwarding and Logistics.
China has particular exposure to Africa as its fifth-largest source of foreign direct investment stock in 2021, United Nations Conference on Trade and Development data showed. Its investments in Africa reached US$1.8 billion in the first half of 2023, up by 4.4 per cent year on year, the Ministry of Commerce said in October. China is also Africa’s biggest trading partner, the state-owned news outlet said.
Overlapping disruptions pose unprecedented challenges to global trade, UNCTAD warns (UNCTAD)
Recent attacks on commercial vessels in the Red Sea have severely affected shipping through the Suez Canal, adding to existing geopolitical and climate-related challenges facing global trade and supply chains, UNCTAD says in a new report released on 22 February. The Red Sea crisis compounds the ongoing disruptions in the Black Sea due to the war in Ukraine, which have resulted in shifts in oil and grain trade routes and altered established patterns.
Additionally, the Panama Canal, a critical artery linking the Atlantic and Pacific oceans, is confronting a separate challenge. Dwindling water levels have raised concerns about the long-term resilience of global supply chains, underscoring the fragility of the world’s trade infrastructure. UNCTAD estimates that transits passing the Suez Canal decreased by 42% compared to its peak. With major players in the shipping industry temporarily suspending Suez transits, weekly container ship transits have fallen by 67%, and container carrying capacity, tanker transits, and gas carriers have experienced significant declines.
Mounting uncertainty and shunning the Suez Canal to reroute around the Cape of Good Hope has both economic and environmental repercussions, particularly for developing economies.
Worries SA could help kill global deal on tax-free e-commerce (TechCentral)
The decades-old global consensus that’s allowed e-commerce and a growing tidal wave of data to cross borders without tolls is at risk of falling apart. Every couple of years since 1998, ministers at the World Trade Organisation have renewed a moratorium on digital customs charges. It’s kept online transactions — a Netflix movie streamed in South Africa, an international Zoom call with a doctor in India, an e-book downloaded on a beach in Bali – free of tariffs throughout the internet age. Maybe not for much longer. The WTO meets in Abu Dhabi next week with the latest moratorium set to expire in March. At least three large developing economies are signalling they’ll oppose another extension.
The tariff ban has helped fuel the fastest-growing segment of world trade: digital goods and services. They’re key to the success not just of tech companies like Amazon.com and Netflix but also the growing number of traditional firms that collect data and conduct e-commerce in foreign markets. Now, emerging economies cite concerns about the dominance of US-based Big Tech – and other worries including risks from artificial intelligence, the need to protect data privacy, and the loss of customs revenue into the ether of the digital economy.
India against EU bringing in new issues at WTO meet via backdoor (The Economic Times)
India has opposed the European Union’s bid to push new issues such as carbon taxes, industrial subsidies, women and climate at the upcoming ministerial meeting of the World Trade Organization (WTO) in the garb of “deliberative functions” or “conversation with ministers” that seek to reform the body. Officials said the EU wants an open-ended work programme for such issues while developing countries are against them being discussed among ministers as they don’t have a negotiating mandate from the global trade body.
The EU has proposed that these issues be taken up as part of reforming the multilateral trade watchdog. Many proponents are calling MC13 as a “reform ministerial”. The EU has identified three areas of systemic importance - trade policy and state intervention in support of industrial sectors, global environmental challenges, and trade and inclusiveness - to reinvigorate the deliberative function of the WTO. India has insisted these are non-trade issues and should be discussed at organisations which deal with them. “Our perspective is that there is no need to add things unnecessarily,” said an official, who did not wish to be identified.
WTO’s push for reform plagued by obstacles (Gulf Business)
At least 100 ministers will gather in Abu Dhabi on February 26-29 for the WTO’s 13th ministerial conference once dubbed the “reform ministerial”. In a sign of wider divisions plaguing the body, delegates cannot even agree to “formalise” the talks that aim to revive the WTO’s top appeals court, known as the Appellate Body, which has been idle since 2019 due to US blockages of judge appointments. As such, trade experts say the best hope is a feeble commitment to keep negotiating on this and other key reforms like reviewing poor countries’ trade terms in Abu Dhabi.
Free trade, its supporters say, has helped lift billions out of poverty. But critics say the WTO has failed to shape trade so that it narrows inequalities between rich and poor nations and help tackle new global challenges, not least climate change. To be sure, the scope of what the WTO can achieve is limited by factors beyond its control such as crisis, elections and geopolitical rivalries.
Changes to WTO rules require consensus which has always constrained its ability to reach global deals since it just takes one country to block an agreement. Only two have ever been reached: a partial fishing deal (2022) and the red-tape cutting Trade Facilitation Agreement (2013).
World Economic Forum to host inaugural TradeTech Forum alongside MC13 (Trade Finance Global)
The World Economic Forum is set to host the inaugural TradeTech Forum 2024, where 300 ministers, industry leaders, trade professionals, and representatives from civil society will discuss the integration of advanced technologies into trade. This event is scheduled for 27 February, coinciding with the 13th Ministerial Conference of the World Trade Organization (MC13). This initiative aims to transform international trade through the trial of innovative technologies and the examination of their implications for policies and business models. Børge Brende, President of the World Economic Forum, said, “It’s time to revitalise trade and this includes the urgent need to understand and integrate new technologies. MC13 and the TradeTech Forum give us the opportunity to build on the work done in Davos to accelerate technology deployment. That can drive a trade recovery and get us out of the trap of ‘slowbalization’.”
World trade map being redrawn as global growth slows and regional links deepen (ProAgri)
Southeast Asian nations are among the biggest winners in the new world trade order, with cumulative ASEAN trade forecast to grow $1.2 trillion in the next ten years due to its emergence as a key destination for companies seeking to decrease their dependence on China for manufacturing and sourcing, which is driving ASEAN’s growth as a platform for global exports. Increasing African prosperity levels, improved regional economic integration, and the growing importance of critical minerals in the global economy will lead to Africa’s trade growing faster than the global average.
International trade statistics: trends in fourth quarter 2023 (OECD)
After several quarters of decline, G20 merchandise trade growth flattened in value terms in Q4 2023, as measured in current US dollars. There was little change in exports and imports compared to Q3 2023, as a robust recovery in East Asia was counterbalanced by a slowdown in Europe and North America. Export growth stagnated in the United States, with lower sales of automobiles being offset by higher sales of industrial supplies. In the European Union, exports were down by 0.6% driven by a decline in chemical products, while imports were down by 1.8%.
Conversely, merchandise trade growth was strong in East Asia. China recorded a 0.6% increase in exports, in part driven by high tech products such as mobile phones, and a 3.9% increase in imports due to mechanical and electrical products. Exports increased in Japan and surged in Korea due to strong automobile sales and a recovery of the Korean semiconductor business. Higher sales of primary commodities fuelled export growth in Australia, Indonesia, and Brazil.
On the services side, preliminary estimates point to moderate growth for the G20 in Q4 2023 compared to the previous quarter, as measured in current US dollars (Figure 1 and 2). Exports and imports are estimated to have grown by 1.6% and 1.3% in Q4 2023, respectively, following the 0.9% decrease in exports and 0.2% increase in imports in Q3.
BRICS competition authorities convene in Egypt to discuss food security, grain trade (Daily News Egypt)
The competition authorities of the BRICS countries (Brazil, Russia, India, China, and South Africa) gathered in Cairo, Egypt, on Wednesday for a two-day meeting to discuss critical issues related to global food supply chains and grain trade. This marks the first competition-related meeting hosted by Egypt since its official accession to the BRICS group earlier this year.
The meeting, held under the auspices of the Egyptian Prime Minister, aims to develop new mechanisms to tackle distortions affecting the global grain trade market. Key concerns include anti-competitive practices, market dominance by major players, and fluctuations in supply chains. These factors can lead to price instability, reduced access to food, and increased financial burdens for consumers worldwide.
Alexey Ivanov, Director of the BRICS Competition Law and Policy Centre, welcomed the opportunity to enhance cooperation in combating anti-competitive practices in food supply chains. The meeting will witness presentations, discussions, and knowledge sharing on ongoing investigations and innovative approaches to food market regulation.
More global economy news
Challenging Times for International Trade: Realigning supply chains to overcome stagnation (RIETI)
UN forum: Nations must collaborate now or risk further setbacks in sustainable development (UN News)
Brazil calls for reform of UN as it starts its G20 presidency (South China Morning Post)
“Connector economies” and the fractured state of foreign direct investment (Atlantic Council)
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Economic growth to stay low over the next three years (SAnews)
South Africa’s economy is expected to grow at some 1.6% over the next three years, with real Gross Domestic Product (GDP) reaching 0.6% in 2023. “Despite the improved global outlook for 2024, South Africa’s near-term growth remains hamstrung by lower commodity prices and structural constraints. We estimate real GDP growth of 0.6% in 2023. This is [revised] down from 0.8% growth estimated during the 2023 MTBPS [Medium Term Budget Policy Statement].
“The growth outlook is supported by the expected easing of power cuts as new energy projects begin production, and as lower inflation supports household consumption and credit extension. “But, there are also risks to the domestic outlook. These include persistent constraints in electricity supply, freight rail and ports, and a high sovereign credit risk. Our challenge… is that the size of the pie is not growing fast enough to meet our developmental needs,” Finance Minister Enoch Godongwana, who delivered the Budget Speech at the Cape Town City Hall on Wednesday, said.
Download the Budget 2024 documents here.
Kenya exempts Ethiopia, South Africa from e-travel authorisation fees (The East African)
Kenya has begun twitching its online visitor registration service that policymakers wanted to use to ease travel into the country, but which saw some countries complain of high charges. And now, the Department of Immigration and Citizen Services says citizens from Ethiopia and five other countries will not be required to pay the $30 per traveller charged when visitors apply to come to Kenya.
The fee is often paid online via the portal www.etakenya.go.ke after the government launched the Electronic Travel Authorisation (eTA) in January. According to the department, citizens from the Comoros, Congo-Brazzaville, Eritrea, Mozambique, San Marino and South Africa will also no longer be charged when filing for eTA applications. The department said these are “countries which had concluded visa abolitions agreement or signed bilateral visa waiver agreements with the Republic of Kenya.” The five had signed visa exemption deals in the last one year. Their exemption from eTA began on February 15, Immigration said in response to a Business Daily inquiry on Wednesday.
Zambia bans maize exports over dry spell (The East African)
The Zambian government on Tuesday announced a restriction on the export of maize and mealie meal (maize flour) due to a prolonged dry spell that could affect the harvest. Minister of Agriculture Reuben Phiri said the restriction will only be lifted after a careful assessment of the next harvest. “Owing to the prevailing situation, the government will continue to put the interest of the country above everything else. In this regard, it has restricted the export of maize grain and mealie meal,” the minister said. The government, he said, has since deployed defence personnel to guard all known smuggling routes, while security patrols and roadblocks are also being increased in districts prone to trafficking.
Cameroon: 2023 Article IV Consultation (IMF)
Cameroon’s economic recovery has continued against a backdrop of domestic security pressures, increased regional spillover risks, and continuing global economic uncertainties. Inflation remains high although decelerating, and while Cameroon is the largest CEMAC economy with ample economic potential, it is a fragile and conflict affected state (FCS). Drivers of fragility include a high debt burden, institutional and governance weaknesses, internal divisions, social exclusion, insurgency, conflicts along borders, and a rising frequency of climate-related natural disasters. Political risks are increasing, with tensions around Presidential succession, and potential spillovers from the region.
The Southern African Development Community (SADC) and the United Nations Food and Agriculture Organisation (FAO) hosted workshop to mark the end of the ‘Support towards the Operationalization of the SADC Regional Agricultural Policy’, (STOSAR) Project which was funded by the European Union (EU) through the European Development Fund (EDF 11) to the tune of Euro 9 million to support implementation of the SADC Regional Agricultural Policy (RAP). The workshop was held on 20-21 February 2024 at Gaborone International Conference Centre (GICC), in Botswana.
The Guest of Honour at the opening of the Workshop, Honourable Fidelis Molao, Minister of Agriculture of the Republic of Botswana hailed the achievements made by the STOSAR project and highlighted the need to sustain the momentum achieved under the STOSAR Project and ensuring that its gains continue to drive agricultural sector which has long been a bedrock for regional integration and sustainable socio-economic transformation of the SADC region.
4th Edition of ECOWAS Mining & Petroleum Forum to hold in Cotonou (ECOWAS)
The Republic of Benin is hosting ECOMOF 2024 which will be held at Palais de Congress, in Cotonou from 22-24 February 2024 under the Theme – “Geo-extractive resources and technologies: what are the strategies to pool for creation of value addition in West Africa?”. This theme would set the tone for a continued forward-looking approach as the Forum reflects on how well the Community desires the mining and petroleum industries to enhance the collective well-being of the citizenry within the context of the region’s industrialization drive.
UBA takes centre stage as Elumelu addresses ECOWAS mining forum in Cotonou (Vanguard)
United Bank for Africa, UBA Plc, has been announced as the official sponsor of the 4th edition of ECOWAS Mining and Petroleum Forum (ECOMOF 2024). The regional event is expected to see a large gathering of key players and stakeholders in the mining and petroleum sectors of the Economic Community of West African States, ECOWAS. UBA Group Chairman, Tony Elumelu, would give the keynote address during the opening ceremony of the event. His speech is expected to highlight UBA’s increasing effort to support and develop the African continent through strategic investments in the key sectors of mining and petroleum.
Africa CDC Spearheads Bold Move to Secure Africa’s Health Future by Creating a 50 billion Dollar Medical Market (Africa CDC)
African leaders made a decision that will create a robust future market for medical products for African manufacturers. Spearheaded by the Africa Centres for Disease Control and Prevention, a pooled procurement mechanism was agreed upon and signed off late last night at the African Union (AU) Summit in Addis Ababa. This decision is significant because it creates predictable demand so manufacturers can plan for the long term to create a viable vaccine manufacturing ecosystem.
The African market size for medicines and vaccines is approximately 50 billion USD annually. Africa CDC will lead the pooled procurement initiative in collaboration with continental and global partners. The move is also designed to ensure that African Union member states can get better deals on price.
Digital ID to unlock Africa’s economic value if fully implemented, say experts (UNECA)
Countries implementing digital identity could unlock value equivalent to 3 to 7 percent of GDP, says statistics and data experts at the 12th StatsTalk-Africa Webinar in Addis Ababa Ethiopia on 20 February 2024. The monthly webinar was organized by the African Centre of Statistics (ACS) of the United Nations Economic Commission for Africa on the theme, ”Building Inclusive National Identity Systems - Inter-linking digital identity and legal identity”.
A digital ID is an identity verified and authenticated to a high degree of assurance over digital channels, unique, and established with individual consent. Unlike a paper-based ID, a digital ID can be authenticated remotely over digital channels.
“Analysis of digital ID Systems indicates that individual countries could unlock economic value equivalent to between 3 and 13 percent of GDP in 2030 from implementing digital ID programs,” said Mr Seck while making a presentation on Digital Identity for Citizens at the webinar.
Under the esteemed patronage of His Excellency Nana Addo Dankwa Akufo-Addo, the President of the Republic of Ghana and the Champion on the African Union Financial Institutions, Africa’s multilateral financial institutions have collaborated and launched the Alliance of African Multilateral Financial Institutions (AAMFI). The auspicious inauguration, which took place on the sidelines of the 37th Ordinary Session of the Assembly of Heads of State and Government of the African Union, marked a pivotal moment in Africa’s financial landscape.
The landmark gathering underscored a united commitment to foster collaboration, cooperation, and coordination among esteemed member institutions to drive sustainable economic development and financial self-reliance across the continent.
Under the mandate of AAMFI, the Alliance members commit to collaborate to address Africa’s development finance needs, promote the interests of member states, advocate for Africa on global finance issues, develop innovative finance tools, and support sustainable finance strategies. AAMFI’s formation underscores Africa’s commitment to self-reliance and sustainable economic development, leveraging home-grown solutions and resources for the continent’s advancement.
The historic inauguration of the Alliance witnessed a momentous occasion as all seven founding members signed a declarative statement announcing their commitment to the principles and objectives behind the establishment of the Alliance.
Civil society organisations proffer solutions on Africa’s huge debts (The Sunday Mail)
Regional civil society groups have come together to proffer solutions for Africa’s unsustainable debt and enhance good public finance management. The African Forum and Network on Debt and Development (AFRODAD) and the Southern African Development Community Parliamentary Forum (SADC PF) have signed a memorandum of understanding (MoU) to partner in promoting sound financial and debt management policies across Africa.
Studies indicate that revenues have been declining amid high gross financing needs in the region; therefore, accelerating borrowing from both domestic and external sources to finance development. Consequently, public debt has been rising in SADC countries.
The MoU between AFRODAD and SADC PF formalises the collaboration of both organisations in influencing policy by providing technical support to African governments and parliaments to regain their political, economic and social agency.
Russia completes shipping free grains to six African states (The East African)
Russia’s Agriculture minister said late on Tuesday that Moscow had completed its initiative of shipping 200,000 metric tonnes of free grain to six African countries, as promised by President Vladimir Putin in July last year. Russia shipped 50,000 tonnes each to Somalia and the Central African Republic (CAR) and 25,000 tonnes each to Mali, Burkina Faso, Zimbabwe and Eritrea, Agriculture Minister Dmitry Patrushev told Putin during a meeting, according to transcript on the Kremlin’s website.
On February 6, 2024, Japan International Cooperation Agency (JICA) and African Continental Free Trade Area (AfCFTA) Secretariat held its first annual consultation meeting in hybrid manner (at AfCFTA Secretariat HQs in Accra / online), and discussed the way how to further deepen its cooperation in 2024. During the meeting, the participants reviewed their efforts in 2023 and discussed plans for 2024. JICA and AfCFTA Secretariat signed a MOC (Memorandum of Cooperation) in December 2022 and agreed to strengthen cooperation in four priorities, namely, 1) Trade Facilitation and Corridor Development, 2) Industrialization and Value Chain, 3) Learn from ASEAN/ Japan’s Experiences, and 4) Capacity Development and Advocacy.
New global trade patterns are ‘not a blip’ as partnerships shift - BCG report (KZN Industrial & Business News)
As the global economy adjusts to persistent economic and geopolitical pressures and disruptions, the familiar routes that defined the world trade map are being redrawn and regional trade lanes are playing a greater role in world trade.
The changing trade picture shows that overall global trade is growing at a slower rate than the world economy, a fundamental shift away from the trend of trade-led globalism that the world enjoyed in most of the years since the end of the Cold War. World trade in goods is forecast to grow at 2.8% per year, on average, through 2032, compared with an estimated 3.1% growth rate for global GDP in the same period, according to a new report by Boston Consulting Group (BCG), titled Jobs, National Security, and the Future of Trade.
Increasing African prosperity levels, improved regional economic integration and the growing importance of critical minerals in the global economy will lead to Africa’s trade growing faster than the global average. It is expected to increase 3.3% per year by 2032, to $1.5 trillion. The continent’s trade with the rest of the world, excluding intra-Africa trade, will see two-way trade increasing by 3.3% per year and a trade surplus. Africa’s trade with the rest of the world will be marked by a 6.9% growth in exports per year by 2032 to $106 billion and a 2.5% growth in imports per year by 2032 to $71 billion.
Brazil’s G20 presidency kicks off in Rio with foreign ministers meeting (The Independent)
Foreign ministers of the Group of 20 nations were gathering Wednesday in Rio de Janeiro to discuss poverty, climate change and heightened global tensions as Brazil takes on the annual presidency of the bloc. The ministers and other representatives of the 20 leading rich and developing nations planned to spend two days setting a roadmap for work to accomplish ahead of a Nov. 18-19 summit in Rio. One of Brazil’s key proposals, set by President Luiz Inácio Lula da Silva, is a reform of global governance institutions such as the United Nations, the World Trade Organization and multilateral banks, where he wants to push for stronger representation of developing nations.
The value of WTO commitments along the global supply chain (CEPR)
US-China trade tensions, the COVID-19 pandemic, and national security concerns have exposed several risks in current global supply chains. The response from governments and firms worldwide has focused on investments to make these supply chains more ‘resilient.’ Another approach is directly targeting the policy shocks, for example by renewing cooperation in trade policy and mitigating systemic uncertainty about future policies.
Cooperation via the WTO has, until recently, successfully reduced trade policy uncertainty (TPU), which has been an important source of export growth. However, the credibility and enforcement of commitments in the WTO are currently diminished (see, for example, Wolff 2022 on dispute settlement). The WTO itself notes that trade scepticism among policymakers and trade policy tensions over supply chains are manifesting themselves in even more fragmented and concentrated supply chains (WTO 2023). Before abandoning hope of renewed cooperation in this area we must answer the following. What is the value of WTO commitments along the global supply chain?
Digital Trade’s Leap: Unveiling the Future for Developing Economies at MC13 in Abu Dhabi (BNN)
As the digital economy carves its niche in the global marketplace, its unprecedented growth has become a beacon of opportunity, particularly for developing economies. The upcoming Thirteenth Ministerial Conference of the World Trade Organization (MC13) in Abu Dhabi is set to become a pivotal arena for discussions on the future of digital trade and its capacity to reshape access to global markets. At the heart of these discussions lies the potential continuation of the Work Programme on e-commerce and the hotly debated extension of the Moratorium on Customs Duties on Electronic Transmissions, issues that hold significant implications for the global digital economy.
7th BioTrade Congress: Global governance for trade and biodiversity (UNCTAD)
The BioTrade Congress returns on 25 and 26 March, 2024 in Geneva, Switzerland at the Palais des Nations (Room XVII), co-organized by the United Nations Conference on Trade and Development (UNCTAD) and partners. The 7th BioTrade Congress will discuss “Global Governance for Trade and Biodiversity” with the aim to propose policy recommendations and actions from government, business and civil society on how trade and trade policy can accelerate implementation of The Biodiversity Plan. The Congress will also feature exchanges and case studies on the biodiversity and socio-economic impact generated through the trade of biodiversity-based products, including BioTrade.