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Patel unveils strategy charting the course for SA’s Global Business Services (SAnews)
Trade, Industry and Competition Minister Ebrahim Patel on Tuesday unveiled a forward-looking strategy charting the course for South Africa’s Global Business Services (GBS) sector. Patel made the announcement during his opening address at the annual BPESA [Business Process Enabling South Africa] GBS | BPO Conference, which took place in Cape Town.
Patel highlighted the sector’s pivotal role in job creation and economic expansion, emphasising the vital partnerships between government, private sector and employees. Government has invested more than R3 billion since 2016 in the sector, which currently employs more than 31 000 employees in firms receiving national government support, earning significant sums of foreign exchange to the country. The industry has a Sector Masterplan that drives its growth and development.
Patel outlined the next phase of the GBS sector, focusing on expanding operations across provinces and towns, with a strong emphasis on high-value services in services in Information Technology, finance, health, legal and retail. The sector will need to address the challenges of artificial intelligence in consumer servicing markets.
The Government of Togo and the African Development Bank have agreed to increase the pace of ongoing projects on the structural transformation and diversification of the country’s economy, while strengthening the Bank’s engagement in Togo. This strategy was reaffirmed during a dissemination workshop held from 23 to 27 October in Lomé on the mid-term review of the partnership between Togo and the Bank between 2021-2026 and the performance review of the project portfolio.
Outputs from the event included a decision to maintain the priority areas of the 2021-2026 Country Strategy Paper (CSP) for the remaining period, from 2024 to 2026. These include the development of inclusive growth hubs and of social-inclusion policies, along with the strengthening of financial and sectoral governance. The main objective of the CSP remains to accelerate the structural transformation and diversification of the Togolese economy in order to create decent jobs and to build socio-economic resilience for sustainable and inclusive growth.
The Ad Hoc Expert Group (AEGM) organised back to back with the 29th Intergovernmental Committee of Senior Officials and Experts (ICSOE) of Southern Africa meeting has recommended swift action to accelerate the implementation of the African Continental Free Trade Area (AfCFTA) in order to tackle poverty and inequality in the region.
The AEGM was organised by the Economic Commission for Africa and the Government of Botswana from 6-7 November 2023 in Gaborone, Botswana. The meeting discussed the status of poverty and inequality in Southern Africa; leveraging the African Continental Free Trade Area (AfCFTA) for poverty and inequality reduction in Southern Africa; and Regional Integration in Southern Africa – Accelerating the implementation of the AfCFTA in Southern Africa building on the acquis of the RECs FTAs.
Ms. Richard-Madisa said the AfCFTA is a potent route towards economic diversification and structural transformation and can support growing value chains through the opening of a larger market across Africa. Citing the case of Botswana where the government has allocated substantial budgetary resources towards poverty and inequality eradication, she advised that through its new Wealth Creation, the country has focused on supporting micro and small enterprise projects in agriculture, housing, women empowerment projects and education sectors to create employment.
“Full implementation of the AfCFTA, ensuring the initiative does not merely remain on paper, is a powerful instrument to propel inclusive development and ameliorate poverty and inequality in the region,” said Ms. Eunice Kamwendo Director of the Economic Commission for Africa (ECA) Sub Regional Office for Southern Africa.
Leather exporters eyeing gov’t support to penetrate int’l market (Ethiopian Press Agency)
Ethiopian leather and leather product exporters are looking for the government support to tackle challenges and penetrate the international market. Although the acceptance of Ethiopian leather product in the international market is increasing, the government should provide support to overcome the challenges in the sector, the exporters said.
Kabana Design PLC CEO and Co-founder Semhal Guesh told the Ethiopia Press Agency (EPA)that the leather market has seen a remarkable improvement after covid-19 pandemic. “The Ethiopian leather product has great customers at the international market. However, there are some challenges such as lack of quality leather materials, accessories, and zippers for the leather bags we made,” she said. To give impetus to the industry, Semhal suggested that the government should provide accessories for free or produce them locally to save costs and address Ethiopia’s shortage of foreign currency.
Zambia VP challenges African researchers to provide solutions for agriculture (KBC)
Researchers in Africa have been challenged to begin to use the research they have developed to provide solutions to Africa’s challenges in agricultural productivity. Zambia Vice President Mutale Nalumango says that there are far too many researchers but very few in terms of tangible solutions to Africa’s challenges. In her keynote address at the 14th Africa Day for Food and Nutrition Security (ADFNS) and commemoration of the 19th Comprehensive Africa Agriculture Development Program (CAADP), the Vice President called for a relook on how to ensure that there is the availability of safer and nutritious foods, that are available, accessible, “affordable and desirable for improved health and well-being of all people on the continent.”
Nalumango said that due to the high vulnerability to shocks and disruptions arising from conflict, climate variability as well as economic contraction, Africa has been recording increasing numbers of stunting and wasting, “the situation is further worsened by demographic changes, urbanization and shifting consumption patterns,” she said and added, “these factors, combined with growing inequities, keep challenging the capacity of national agri-food systems to deliver nutritious, safe and affordable diets for all.”
Agronomic board revises horticulture imports (The Namibian)
The Namibian Agronomic Board (NAB) has revised the number of crops closed for importation from 12 to seven out of a total of 20 on the special import permit for the period 1-30 November. This is an indication that Namibian horticultural producers will not be able to meet the country’s demand for all these crops during November.
Removed from the original list of crops that were closed for importation from 1- 30 November, are English cucumber, green pepper, jam tomato, cocktail/cherry mini plum tomato, as well as lettuce (iceberg). According to a notice to all horticulture traders signed by NAB chief executive Fidelis Mwazi on 2 November, the revision of the importation list is in line with the Agronomic Industry Act and the Namibian Horticulture Market Share Promotion Scheme rules and regulations. These are part of efforts by the regulator to protect Namibia’s nascent industry from competition from cheap imports that might flood the market.
Ministry of Trade implements stringent registration process for Khat exporters (Addis Standard)
The Ministry of Trade has announced that khat exporters will now be required to undergo a rigorous registration process, which includes meeting newly issued pre-license requirements to participate in the business. The objective of this move is to streamline operations and enhance earnings from khat exports. The new directive applies to all existing exporters who have renewed their operations in the current fiscal year, as well as those wishing to enter the khat export industry. The re-registration period for exporters is scheduled to take place from 7–25 November, 2023.
During a press briefing held yesterday, Gebremeskel Chala, Minister of Trade and Regional Integration, emphasized the necessity of pre-licensing criteria for the khat export sector. According to him, this criteria aims to identify challenges faced by the industry and implement operational reforms to improve the export revenue derived from this stimulant. Previously, khat used to rank among Ethiopia’s top five commodities in terms of export earnings. However, the yearly revenue generated from this cash crop has significantly declined from over $400 million a decade ago to $248 million last year.
AGRA Ghana boss calls for more efforts to improve farmer access to certified seeds (GhanaWeb)
Ghana Country Director of AGRA, Dr. Betty Annan, says more efforts are needed to ensure farmers in the country have access to certified seeds to improve productivity. She says although Ghana has witnessed a growth in the development and availability of improved and locally adopted seed varieties, there is still a huge gap that needs to be filled.
“The adoption is still marginal with only about 30% of the farmers using improved varieties. The slow pace of adoption is linked to inadequate compliance with seed legislation by seed value chain operators and disregard for seed certification and standard regulations here in Ghana,” she observed.
Madam Annan was speaking at the 4th National Seed Business and Networking Forum (Seedlink 2023) in Tamale. Dr. Annan expressed concern that the current global economic crisis has hindered farmer access to quality seeds and fertilisers. “There is therefore an urgent need for industry players to act in unison to strengthen the seed sector and scale up the use of improved seeds to boost productivity and transform the food systems,” she said.
Customs seizes 13 trucks of foreign rice, others worth N1.2 billion (Nairametrics)
The Nigeria Customs Service has confirmed the seizure of 13 trailer loads of foreign parboiled rice and 17 vehicles, among other notable items, worth N1,241,777,700 in October. The information was revealed in an official statement published on the Nigerian Customs Service’s official X (formerly Twitter) account on Wednesday.
According to the statement, the information was conveyed by the Acting Comptroller of the Unit, Hussein Ejibunu, during a press briefing held at the Unit’s Headquarters in Lagos. “While showcasing the seizure, Ejibunu explained that the 17 vehicles were seized from smugglers who wanted to circumvent the law, stressing that the Federal Operation Unit Zone ‘A’ under his watch will make the remaining part of the year more challenging for smugglers in the interest of the country.
Ghana to fight E-commerce digital fraud in support of AFCFTA (KasapaFM)
The Ministry of Communications and Digitalisation says it has observed that many logistical companies and digital platform operators are flouting the law by facilitating courier services without complying with the country’s licensing regulations. Section 10 of The Postal and Courier Services Regulatory Commission Act, Act 649, makes goods deliver/and courier activities in Ghana a regulated service; and Sections 47 to 49 of the Electronic Transactions Act, Act 772, also specifies minimum compliance standards for e-commerce operators.
“The Ministry has therefore directed all such companies and the couriers/drivers operating on their networks to register with the Postal and Courier Services Regulatory Commission (PCSRC) for an e-certificate and for an AfCFTA Number by December 2023. After this date, no new goods delivery and courier service provide, can register with any digital platform or delivery service without a valid PSCPC e certificate. Existing operators must comply by January 24, 2024. Companies falling within the scope of this directive include Uber, Bolt, Yango, Glovo, Jiji, Tonaton, Maxmartghana corm, and all e-commerce and delivery platforms and companies,” a statement issued by the Minister, Ursula Owusu Ekuful said.
Instant payment systems in Africa record US$1.2 trillion worth of transactions in 2023 (GhanaWeb)
The AfricaNenda report on the State of Inclusive Instant Payment (SIIP) in Africa for the year 2023 indicates that as of June this year, instant payment systems (IPSs) in Africa recorded 32 billion transactions valued at a whopping US$1.2 trillion. Ahead of the launch of the report in Addis Ababa, Deputy Chief Executive of AfricaNenda, Sabine Mensah told journalists in Addis Ababa that the figures were even conservative because they were based on data from only 22 out of 32 countries that have active instant payment systems on the continent to date.
Again, she noted that as of June 2023, when the report was finalized, there was an average of about 30 percent depreciation of currencies in Africa against the US dollar, so if the value of transaction was based on the exchange rates prior to June 2023, the value of transaction would have far exceeded US$1.2 trillion.
“Inclusivity is a spectrum – it means the system must be relevant to all – save time – save money – ensure easy payment (interoperable) – facilitates relevant use cases – the most basic phone should have access to all use cases – send money – receive money – pay to government – receive government support (social payments) – that way the value proposition is compelling enough to drive wide usage,” she said.
BRI boosts internet development in less developed countries: report (CGTN)
The World Internet Development Report 2023 and the China Internet Development Report 2023 released during the 2023 World Internet Conference Wuzhen Summit in Wuzhen, east China’s Zhejiang Province. The growth rate of internet use among 15 of the 21 less developed countries is higher than that of some developed countries, according to a report released by the Chinese Academy of Cyberspace Studies on Wednesday.
The report also evaluated the development of the internet in 52 countries and regions around the world. It said the top 10 countries with the highest internet development level were the United States, China, Singapore, the Netherlands, South Korea, Finland, Sweden, Japan, Canada and France.
Collaboration can enhance regional trade, as Mauritius explores Namibian opportunities (New Era)
Namibia understands the importance of enhancing intra-Africa trade, creating synergies and an enabling environment to unlock opportunities for sourcing materials and intermediate products while promoting economic self-sufficiency. This is according to deputy executive director in the trade ministry Ndiitah Nghipondoka-Robiati, who was speaking on Monday during a Namibia-Mauritius business forum.
Nghipondoka-Robiati noted that one of the ministry’s mandates is to promote economic growth and development, through the formulation and implementation of appropriate policies with the view to attract investment and increase trade, as well as develop and expand Namibia’s industrial base. “The ministry is committed to continue creating an enabling environment for trade and investment opportunities regionally and globally,” said Nghipondoka-Robiati at the forum in Windhoek.
She noted that by connecting with Mauritian buyers, distributors and business partners, domestic economic growth will be stimulated. She added that regionally, the ground is fertile, with the AfCFTA creating a platform where logistics and supply chains can garner the efficient movement of goods and services in the region.
Morocco-Nigeria gas project vital to Africa’s energy security (ESI-Africa)
‘AfCFTA offers crucial trade-off between revenue collection (The Guardian Nigeria)
The Comptroller General of Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, said the objectives of Africa Continental Free Trade Area (AfCFTA) presented beacon of hope for Africa’s economic transformation, ranging from the promotion of intra-African trade to sustainable economic growth. He stated this at the 18th Roundtable of Managing Directors/Exhibition of the Port Management Association of West and Central Africa (PMAWCA) hosted by the Nigerian Ports Authority (NPA) in Lagos.
Adeniyi spoke on the topic: “What does the AfCFTA offer to African Ports after three years of implementation.” He said unfortunately, the free trade area is poised to usher in significant changes that will have a profound impact on customs operations, which is the shift in customs’ focus, moving from the import side to the export side of trade facilitation
High costs of air travel in Africa stifle tourism (The East African)
The high cost of air travel in Africa has been described as a barrier to tourism. Travellers within the continent not only pay higher ticket prices but also more tax to board a commercial aircraft. This emerged at the just-ended World Travel and Tourism Council (WTTC) global summit in Kigali, Rwanda. Speakers at the high-profile event—heads of state, business executives, and travel experts—said intra-Africa air travel remains prohibitive.
“It is often cheaper to fly to another continent than to another African country,” they said as the meeting drew to a close. They cited an air ticket between Berlin in Germany and Istanbul costing a mere $150 for a direct flight taking less than three hours. Flying a similar distance between Kinshasa and Lagos in Nigeria would cost between $500 and $850, with the trip taking up to 20 hours. On the other hand, the cost of a flight from Entebbe in Uganda to the Kenyan port of Mombasa (916km) will cost up to $200. This is roughly eight times the cost of flying the same distance in Europe. “This makes doing business within Africa incredibly difficult and expensive,” said Kamil al Awadhi, the regional vice president for Africa and the Middle East of the International Air Traffic Association (Iata).
Building a Blue Economy Strategy for the East African Community (UNECA)
The blue economy is a vital area of activity for the East African Community (EAC), as it offers opportunities for sustainable economic, social and ecological development and growth. To harness its full potential, the EAC needs a coherent and coordinated strategy and action plan that aligns with the African Union’s strategy, the national priorities and aspirations of its partner states, along the other overlapping regional commitments of the latter.
The office for Eastern Africa of the UN Economic Commission for Africa (ECA) and the EAC organised a two-day regional consultation meeting in Mombasa, Kenya, on 30-31 October 2023, to discuss the Roadmap for an EAC Blue Economy Strategy and Action Plan.
Mr Jean Baptiste Havugimana, Director of Productive Sectors, East African Community commended this consultation exercise which serves to ensure that the upcoming EAC Blue Economy Strategy and Action Plan is in line with the established AU’s Africa Blue Economy Strategy and that the present varied level of engagement with the blue economy of its partner states are also taken into consideration. With the roadmap for this process being established and the priorities of the strategy being preliminarily identified, he is confident that the EAC Blue Economy Strategy and Action Plan will be a document which will have strong ownership by partner states who will be committed to its operationalisation.
Africa Investment Forum 2023 kicks off in Marrakech, unlocking Africa’s value chains (Daily News Egypt)
The 2023 edition of the Africa Investment Forum (AIF) kicked off on Wednesday in Marrakech, Morocco, bringing together Heads-of-State, decision-makers, multinationals, and investors for a three-day event under the theme “Unlocking Africa’s Value Chains.” The Africa Investment Forum is a multi-stakeholder platform focusing on continental dealmaking, facilitating connections between project sponsors, policymakers, and investors, and has mobilized $142bn in investment interest since 2018.
Akinwumi A. Adesina, President of the African Development Bank Group, said, “The Africa Investment Forum gathers at a time of heightened geopolitical tensions and conflicts around the world, which have led to greater uncertainties and could weaken global economic growth.” “Yet in the midst of the challenges, Africa is growing well and showing resilience. African economies witnessed a real GDP growth of 3.8% in 2022, higher than the world average of 3.5%,” he stressed.
A panel of African Heads of State and Government discussed Africa’s potential to play a larger role in global value chains. They emphasized the need for improved infrastructure, resource cooperation, and a supportive business environment.
Connectivity critical for growth, Tanzania President Samia says (The East African)
Tanzania’s President Samia Suluhu Hassan has emphasised the urgent need to close connectivity gaps in Africa to fast-track economic growth. She also acknowledged the critical role of the private sector in the growth of the continent’s economies and asked governments to embrace private enterprises. She was speaking in Marrakech, Morocco on Wednesday in a presidential panel in the ongoing Africa Investment Forum. The forum is organised by the Pan-African lender African Development Bank (AfDB) and other multilateral financial institutions. This year’s theme is “Unlocking Africa’s Value Chains”.
“Connectivity is critical on our continent. I once attended a conference in Senegal, and I had first to go to Paris and then fly back to Africa. That’s a problem,” she said. Noting that Tanzania shares borders with eight countries with whom it is connected by road, rail, water and air, she said her government was upgrading the old railway network while building a standard gauge railway line from the port of Dar es Salaam to connect to Burundi through the Democratic Republic of Congo then Rwanda and Uganda.
AfDB President calls for investment in Special Agro-Industrial Processing Zones (Daily News Egypt)
Africa needs initiatives to encourage private entrepreneurship Mohammed VI (Businessday Nigeria)
Abidjan-Lagos Highway Corridor Secures $15.5bn Investment Interest (The Will)
WCO and IAPH launch their first ever Guidelines on Cooperation between Customs and Port authorities (WCO)
On 31 October 2023, the Deputy Secretary General of the World Customs Organization (WCO), Mr. Ricardo Treviño Chapa, participated in the session titled “Customs authorities as trade facilitators” at the International Association of Ports and Harbors (IAPH) World Ports Conference 2023.
Before an audience of over 600 people made up exclusively of Port CEOs, maritime supply chain stakeholders, senior government officials and international advisors, the Deputy Secretary General provided delegates with an insight into how both Port authorities and their governing bodies can partner with Customs authorities to facilitate smoother trade and cargo flows in their maritime supply chains. According to Mr. Treviño Chapa, “the WCO has been at the forefront of border modernization and continues to promote Coordinated Border Management and Digitalization as important components of border modernization programmes”.
The launch of the “WCO-IAPH Joint Guidelines on Cooperation between Customs and Port Authorities” was announced in conjunction with the Managing Director of the IAPH, Dr. Patrick Verhoeven.
G20 Economies Should Turn to Reforms to Improve Growth Amid Policy Tightening (IMF)
Most Group of Twenty economies are likely to keep monetary policy appropriately tight to bring inflation back to target. Central banks will need to keep interest rates higher for longer as inflation remains persistently elevated—and easing too soon could undo hard-won progress to anchor inflation expectations.
This higher-for-longer environment for borrowing costs, however, portends sustained funding pressures for governments. That means governments will need to consolidate their finances to rebuild buffers and ensure that their debt is sustainable. Most G20 economies are poised to cut spending and boost revenues in the next few years, but in many cases IMF staff recommend even greater fiscal effort to ensure sufficient space to respond to future shocks and new fiscal challenges.
Amid the likely drag of both monetary and fiscal tightening, both advanced economies and emerging market and developing countries should consider structural reforms, such as those to make product and labor markets more efficient, to support economic growth.
While the exact prescriptions will differ by country, recent IMF research shows significant potential benefits of so-called first-generation reforms in emerging market and developing economies that, in turn, can have beneficial spillovers for advanced economies.
WCO Welcomes G7 Trade Ministers’ Statement on Enhancing Global Trade and Customs Operations (WCO)
The G7 Trade Ministers issued a Statement at a meeting in Osaka-Sakai on 29 October 2023, outlining various policies necessitating actions by Customs administrations. These areas include enhancing supply chain resilience, regulating e-commerce, and addressing the interplay between trade and environmental/climate change issues.
Notably, the Ministers expressed their commitment to strengthen engagement with emerging and developing economies in areas of Trade and Development. They underscored the importance of making the multilateral trade system more inclusive, recognizing the critical role of capacity building through the World Customs Organization (WCO). They also noted the need for training Customs officers to expedite Customs procedures, particularly for the rapid processing of emergency relief supplies.
The WCO welcomes this ministerial statement. Dr. Kunio Mikuriya, WCO Secretary General, commented on the statement, saying, “The WCO reaffirms its commitment to enhancing inclusiveness in the multilateral trade system, supporting supply chain resilience and addressing challenges posed by e-commerce. We aim to achieve these goals through strengthened cooperation with emerging and developing economies and by leveraging our expertise and global network.”
pdf G7 Trade Ministers’ Statement, Osaka-Sakai | 29 October 202 (196 KB)
G7 Japan 2023 Foreign Ministers’ Statement (United States Department of State)
Timely food market information is key amid crises, agriculture group says (WTO)
Accurate and timely information on the functioning of international agriculture markets is essential for addressing climate change, conflict and other challenges impacting global food markets today, speakers underlined during the 24th session of the Agriculture Market Information System (AMIS) Global Food Market Information Group at WTO headquarters on 6-7 November.
Edwini Kessie, Director of the WTO’s Agriculture and Commodities Division, opened the meeting by noting the crucial role that AMIS has played in enhancing transparency on global food markets and strengthening food security. “These are goals which WTO members wholeheartedly support,” he said.
AI can make substantial contributions to climate-resilient, low-emissions development (The Times of India)
Artificial intelligence (AI) can make substantial contributions to climate-resilient and low-emissions development. UN Climate Change’s Initiative on Artificial Intelligence for Climate Action explores the role of AI as a powerful tool for advancing and scaling up transformative climate action in developing countries.
In line with the call by UN Secretary-General Antonio Guterres to develop AI that is “reliable and safe” and that can “supercharge climate action” to propel us towards achieving the Sustainable Development Goals, the #AI4ClimateAction Initiative aims to deliver concrete and transformative results, both on policy and implementation, under the first joint work programme of UN Climate Change’s Technology Mechanism.
Some AI-powered solutions for climate action in developing countries, including least-developed countries (LDCs) and Small Island Developing States (SIDS), are already underway. Agri-food systems and crop management can be optimized with AI predicting the best planting times, assessing soil health and monitoring pest and disease outbreaks. AI-driven precision agriculture can also reduce water usage, promote sustainable farming practices and boost food production.
Renewable energy systems’ efficiency and reliability can be improved by AI algorithms that predict energy demand, optimize grid operations and integrate renewable energy sources seamlessly, reducing greenhouse gas emissions and promoting a shift toward low-emission energy solutions.
Talks to boost ‘underfinanced’ climate adaptation split over money (Climate Home News)
Developing and developed countries are wrangling over whether finance should be included in an adaptation framework to be approved at Cop28 As years-long negotiations over boosting global efforts to adapt to climate change enter the final stretch, countries are still divided over targets and the funding to achieve them.
At Cop28 next month, governments are expected to approve a framework to make the Paris Agreement’s global goal on adaptation (GGA) more concrete. Adaptation is one of the key priorities of the Paris Agreement, alongside emission reductions. But challenges in defining, measuring and funding action on this front have held back progress at the same time as climate risks are accelerating.
Developing countries need an estimated $387 billion a year to carry out their current adaptation plans, but in 2021 they only received $21 billion in international adaptation finance, according to a recent report by the UN Environment Programme (UNEP).
Developing countries want the agreement to tackle the question of finance directly, ideally with a dedicated target. On the other hand, developed countries, which would be called upon to foot the bill, oppose any mention of money in the text.
Q&A: The fight over the ‘loss-and-damage fund’ for climate change (Carbon Brief)
Fossil fuel producers ‘literally doubling down’, new UNEP report warns (UN News)
While 17 of the 20 countries featured in the report have pledged to achieve net-zero emissions – and many have launched initiatives to cut emissions from fossil fuel production activities – none have committed to reduce coal, oil, and gas production in line with limiting global warming to 1.5 degrees Celsius. The UN chief thinks that at COP28 – the UN climate summit in Dubai at the end of this month – world leaders must send a clear signal that “the fossil fuel age is out of gas – that its end is inevitable.”
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Mashatile commits to deepen trade with China, increase value-added products (SAnews)
Deputy President Paul Mashatile says South Africa will continue to explore various avenues of strengthening and deepening long-standing economic, trade and people-to-people relations with China. “By advancing more South African value-added products from a top 10 category to an exponential top 100 products, we are confident that we are making progress in our bilateral trade,” he said on Sunday.
The Deputy President was speaking during his open remarks at the 6th China International Import Expo (CIIE) in Shanghai.
Mashatile described the expo as a unique platform that provides companies around the world the opportunity to showcase their products and services, and expand their network. It is also a platform to conclude trade deals, while companies learn about the culture of doing business with Chinese enterprises and get first-hand information on compliance and adherence to Chinese protocols.
Kenya projects economy to grow 5.5 pct in 2023 (Xinhua)
Kenya’s economy is projected to grow 5.5 percent in 2023, compared to the 4.8 percent recorded in 2022, a government official said Tuesday. Susan Koech, the deputy governor of the Central Bank of Kenya, told a forum in Nairobi, the capital of Kenya, that the growth will be driven by a rebound in the agriculture and services sector as well as government measures implemented to stimulate the manufacturing sector.
“The government has also put in place policy measures that continue to provide a strong foundation for macro-economic stability and long-term growth,” Koech said during the NCBA Bank 2024 Macroeconomic Outlook forum. The event gathered senior government officials, bank executives and manufacturers to review ways to boost Kenya’s economic growth.
Koech observed that the East African nation’s economy is projected to expand by 6 percent in 2024 as the country has a well-diversified economy that is able to weather multiple shocks. She revealed that Kenya’s economic performance is also underpinned by its exports which are dominated by agricultural crops such as fresh flowers, tea and coffee.
‘Zim must prioritise industrialisation’ (NewsDay)
Zimbabwe needs to give priority to industrialisation and diversifying its productive capacities to mitigate the risk of becoming dependent on imported commodities, a government official has said. Speaking at the Competition and Tariff Commission annual trade tariff conference in Harare last week, investment promotion and export development deputy-director at the Industry and Commerce ministry Netai Magade said local production was key to economic growth.
“It is crucial for the local industry to position itself to take full advantage of these opportunities here presented such as accessing duty-free exports in a market of about 1,3 billion people,” she said. “This will not only bring in the much needed foreign currency, but also create employment opportunities for our citizens. To effectively participate in these trading blocs, Zimbabwe must, I repeat, must prioritise industrialisation and the diversification of its production capabilities.
EAC FDI increase despite global uncertainties (Tanzania Daily News)
The East African Community (EAC), a seven-nation bloc comprises some of the most highly populated and resource-rich countries in Africa. Its combined GDP of US$ 305.3 billion (2021) which is expected to hit $346.17 billion in 2023, according to the IMF’s latest forecast, population of more than 300 million (according to some estimates) and its strategic geographical position make it an attractive investment destination.
Abundant resources in the region such as proven oil deposits in Uganda, liquefied natural gas (LNG) in Tanzania, copper in DR Congo, cobalt and nickel deposits in DR Congo and Tanzania, make the bloc on the radar of investors. These give the region reasons for optimism for strong economic growth prospects which will make it even more attractive for investments.
It was not surprising that the East African region posted increasing flows of investments in 2022 despite the challenging global economic situation worsened by the Ukraine war and rising inflation. FDI inflows rose also in the Southern African Development Community (quadrupling, to 10 billion US dollars), and the West African Economic and Monetary Union (doubling, to 5.2 billion US dollars).
Cargo & Logistics Services Constitute About 35% of Ethiopian Revenue: CEO Mesfin (ENA)
The cargo and logistics services constitute about 35 percent of the Ethiopian Airlines Group’s total revenues, Ethiopian Airlines Group CEO Mesfin Tassew said. In an exclusive interview with ENA, Mesfin said that Ethiopian currently has 16 fully dedicated cargo freighter aircrafts and will soon receive a new cargo aircraft.
Unrivalled in its network coverage, Ethiopian Cargo and Logistics Services provides a transport service to 60 plus destinations in Africa where more than half of the cities are served with a mix of freighter aircraft ensuring the safe and fast transportation of the goods within and beyond the continent.
“The cargo business today constitutes about 30 to 35 percent of our total revenue. Total revenue in the last fiscal year that ended in June was 6.1 billion USD and around 2 billion USD of revenue was generated from the cargo and logistics services,” Mesfin elaborated.
Ethiopian is the largest cargo network operator in Africa and one of the major global cargo carriers with a modern warehouse of 1 million tons storage capacity. The Cargo and Logistics Services operates with a state-of-the-art cargo terminal, which is the largest in Africa, and is fully automated with one of the latest Cargo IT systems by adopting the latest aviation systems and technologies to provide efficient freight service across the globe
Shipping giants hit SA containers with congestion charges amid massive delays at ports (Engineering News)
Shipping giants Mediterranean Shipping Company (MSC) and Maersk have announced a costly fee for congested vessels this December due to severe delays at South African ports.
In its announcement, MSC said: ”Due to congestion in the South African ports [and] generating difficult conditions to operate, MSC will [as of 3 December] apply a CGS [congestion surcharge] for cargo to all South African ports to maintain our services provided”. Cargo owners will be expected to pay an estimated $210 (R3 850) per shipping container due to congestion.
Meanwhile, Danish company Maersk will impose a Congestion Fee Destination (CFD) of between $200 and $400 per shipping container from 1 December, it announced. Earlier this year, French shipping company Compagnie Maritime d’Affrètement Compagnie Générale Maritime (CMA CGM) announced a CGS of $250 per shipping container for cargo from Asian countries. With the congestion surcharge, South African cargo owners will be expected to pay more than the global average per 40ft container, said Van Rensburg.
Port of Cape Town agricultural exports heading for a crisis, warns Western Cape govt (Engineering News)
The Western Cape is heading for an export crisis at the end of the year, warns Western Cape Finance and Economic Opportunities Minister Mireille Wenger. “With the good rains we have experienced, our agricultural goods for export are anticipated to increase by 25%. “This is a wonderful opportunity…to bring in more revenue.”
In direct contrast to this opportunity, however, there has been a “significant deterioration” at the Port of Cape Town, particularly when it comes to critical equipment, such as rubber-tyred gantries, warns Wenger. “These are needed to load containers on and off trucks, but they are repeatedly breaking down. “This means that, as it stands, the port is not, and will not, be able to keep up with the volume of goods coming in, and to get them to market in time.”
From October 2 to 15, vessel waiting time at anchor at the Cape Town port averaged 4.9 days, versus the target of one day, notes the Western Cape government. Also, vessel turnaround time averaged 10 days, versus the target of four days; containers moved averaged 9 197 twenty-foot equivalent unit (TEUs) containers, versus a target of 20 000; and truck turnaround time averaged 77 minutes, versus the target of 35 minutes.
NPA Launches $1.1bn Port Rehabilitation Plan for Enhanced Trade Competitiveness (Daily Trend)
The Nigerian Ports Authority (NPA) has said it is embarking on a significant $1.1 billion port rehabilitation plan, in a means to ensure a strong commitment to fortify Nigeria’s trade competitiveness. Speaking during a panel session during the 43rd PMAWCA (Port Management Association of West and Central Africa) conference held in Lagos, Mohammed Bello Koko, the Managing Director of NPA, stated that with almost every port in Nigeria requiring rehabilitation, the NPA is initiating a substantial overhaul, starting with the TinCan and Apapa ports in Lagos.
He stated that the objective of the authority is to enhance the physical infrastructure of these ports to accommodate vessels of all sizes and increase the draft at the quay side, with the aim of achieving draft depths of up to 14 meters expressing that the initiative will render Nigerian ports more competitive on a global scale. Koko further stated that the NPA is also strengthening collaborations with the private sector to establish new seaports.
Recognizing the inefficiencies associated with road-dependent cargo evacuation, he said the NPA is actively working on alternatives initiatives which include implementing barges and expanding rail infrastructure. He informed that the rail line has reached Apapa port and will soon extend to TinCan port. To streamline operations and reduce costs, Koko informed that the NPA is embracing automation. He said “The authority has automated its collection system and is collaborating with the International Maritime Organization (IMO) to introduce a state-of-the-art port community system, poised to optimize cargo clearance processes”.
Nigeria to scale up its global port ratings (Freight News)
Why EA Commercial and Logistics Centre crucial (Tanzania Daily News)
The East Africa Commercial and Logistics Centre Project being implemented at a cost of 110 million US dollar (about 275bn/-) at Ubungo District in Dar es Salaam has reached 80 per cent and is expected to strengthen trade and accelerate the growth of the entire Eastern Africa economy. EACLC Project General Director, Ms Cathy Wang made the statement yesterday shortly after hosting the Tanzania Investment Centre’s (TIC) Board of Directors’ Chairman, Dr Binilith Mahenge who was accompanied with other TIC’s officials to inspect the progress of the notable business hub project.
Ms Wang said the project, funded by China’s private investors, which officially kicked off in April this year has reached 80 per cent, where about 70 million USD (about 175bn/-) has already been invested, noting by December this year the structure of the centre will be completed while overall completion that entails decoration is expected by June 2024.
She said upon starting its operation by the mid of next year the project will promote business development by ensuring local industries from Tanzania and neighbouring countries including Rwanda and Burundi enjoy widened accessibility to China’s market through the integrated logistics services with end-to-end supply chain. Ms Wang said the move targets in enabling Tanzania’s goods producers to fully tap the China market assisting the country to achieve the semi-industrialisation goal come 2025.
On 11 October 2023, the Africa Group at the United Nations tabled a proposal calling for a comprehensive UN tax convention. Now, over 200 organisations and trade unions have sent a letter to governments calling for the adoption of the Africa Group’s resolution, and stressing that this issue should be treated as a matter of highest priority and urgency. “In light of the Covid-19 pandemic, all-time high public debt service payments and the “cost of living crisis”, the fight to increase domestic resource mobilisation and combat illicit financial flows has never been more vital.”
As the negotiations progress in the 2nd Committee of the UN General Assembly, we specifically call on all governments to ensure that the level of ambition and key elements of the resolution are kept intact.
AfCFTA endorsed the Africa Tourism Private Sector Alliance (ATPSA) (TravelDailyNews International)
The Africa Free Continental Trade Area (AfCFTA) has endorsed the Africa Tourism Private Sector Alliance (ATPSA). This took place during the 6th ATLF hosted by the Government of Botswana in October 2023 in Gaborone, Botswana. The endorsement was witnessed by over 600 industry stakeholders, policy-makers, private sector executives, academics and investors who had gathered in Gaborone Botswana for the Africa Tourism Leadership Forum & Awards 2023 that was held from 03 to 06 October.
AfCFTA’s endorsement now affirms the Africa Tourism Private Sector Alliance (ATPSA) as the only Pan-African apex body and platform for national tourism private sector associations and organisations for African Union Member states. Birthed on the margins of ATLF 2022 in Botswana, the ATPSA will serve as a single voice and platform for positioning Tourism as priority sector across all African countries. The primary role of the body is to advocate for the removal of barriers to intra-Africa travel such as visa-free travel for Africans within Africa, improved connectivity within African countries, reduced cost of air travel across Africa, promotion of Africa under the “Brand Africa” banner in collaboration with the African Continental Free Trade Area (AfCFTA).
Other key priority focus areas of the Alliance are research, creation of market access for SMEs through destination marketing, capacity building and learning, best practice and knowledge sharing, Thought-leadership development, sustainable tourism development more.
Kenya to host African Continental Free Trade Area Pan African payment system headquarters (Capital News)
Speaking on Tuesday during the launch of the Africa Continental Free Trade Area (AFCFTA) and policy development centre at Strathmore University, Ruto has said easing the trade that happens in different currencies will greatly boost intra-African trade and investments.
“Africa has continued to rank at the bottom when it comes to participating, contributing and competing in the global economy relative to other regional blocs. It accounts for only 3 percent of global trade,” Ruto stated. “Why is a continent that is larger than all the other continents and land masses combined, which is home to over a billion people and sits on all these resources, contributing only 3 percent of global trade, and only 2.84 percent of global GDP?” he added.
Senator Coons releases draft of AGOA reauthorization act to deepen U.S.-Africa economic relationship (Chris Coons)
U.S. Senator Chris Coons (D-Del.) released a discussion draft of the AGOA Renewal Act of 2023 that would extend and enhance the African Growth and Opportunity Act (AGOA), the cornerstone of the United States’ economic relationship with sub-Saharan Africa.
“For over 20 years, AGOA has created valuable opportunities for U.S. businesses, workers, and consumers while supporting sustainable economic growth in sub-Saharan Africa,” said Senator Coons. “My AGOA Renewal Act would extend this program, incentivizing investments that will create jobs, bolster economic development, and strengthen our standing in the region. I look forward to working with my colleagues in the Senate to get this done.”
The AGOA Renewal Act would extend AGOA until 2041. This long-term extension would provide businesses with the predictability needed to invest in sub-Saharan Africa at a time when many firms are looking to diversify their supply chains and reduce dependence on China. Increased investment by U.S. businesses in sub-Saharan Africa supports regional economic growth and development and strengthens the United States’ position on the continent.
US Senator Chris Coons proposes AGOA extension by 16 years, immediate review of SA’s AGOA eligibility (Daily Maverick)
South Africa hosted a successful 20th Africa Growth and Opportunity Act (AGOA) Forum on 2 – 4 November 2023 in Johannesburg. The forum brought together over 5 000 participants comprising of Ministers of Trade and their senior officials, the United States of America (US) Government delegation led by US Trade Representative (USTR) Ambassador Katherine Tai, US Congressional staffers, private sector, organised labour, civil society, exhibitors in the Made in Africa Exhibition, procurers and investors.
The forum was officially opened by President Cyril Ramaphosa, who started with a tour of the Made in Africa Exhibition which showcased industrial products and regional value chains that have formed in the continent. President Ramaphosa noted that “the extension of AGOA could also encourage the further development of value-chains across different countries”.
Using the automotive sector as an example of regional value chains, President Ramaphosa indicated that local automotive companies source leather seats from Lesotho, wiring harnesses from Botswana, copper wiring from Zambia, steering wheel components from Tunisia and rubber from Cote D’Ivoire, Nigeria, Malawi, Ghana and Cameroon.
How Uganda Agoa ban will impact East Africa (The East African)
Tanzania: We need to diversify export portfolio to benefit more from AGOA (Tanzania Daily News)
NEPC Moves to Facilitate Export of Cashew, Rice Derivatives, Stem Rejection (This Day)
The Executive Director/Chief Executive, Nigerian Export Promotion Council (NEPC), Nonye Ayeni, has said the council remained committed to ensuring that the export of cashew and rice derivatives conformed with international requirements. She said efforts were also being taken to ensure instances of export rejection were minimised considerably going forward.
Speaking at the opening of the NEPC/GIZ interactive session for cashew and rice value chain actors in Abuja, she said the engagement was particularly given that world trade in non-oil exportable products had become highly regulated, fundamentally because of safety, health, and environmental considerations.
Ayeni noted that exporters are hence required to conform to Good Agricultural Practices (GAP), secure necessary certifications, and utilise appropriate documentation, and packaging which if not properly addressed, becomes technical barriers to trade.
UNCTAD has emphasized in a new report the imperative for international financial reforms to specifically target the financing requirements of the world’s 46 least developed countries (LDCs). According to the organization’s Least Developed Countries Report 2023, published on 7 November, fiscal constraints in LDCs pose a severe threat to their ability to implement crucial development policies, potentially derailing progress towards Sustainable Development Goals (SDGs) and a low-carbon transition.
UNCTAD Secretary-General Rebeca Grynspan said “The success of the 2030 Agenda for Sustainable Development is inextricably linked to the progress of these nations,” adding that time is running out for LDCs to achieve the SDGs. Failure to promptly address the financing needs of LDCs, warns the report, will hinder their development prospects and exacerbate the impact of climate change, especially since 17 out of the 20 countries most vulnerable to and least prepared for climate change are LDCs.
Hidden costs of global agrifood systems worth at least $10 trillion (FAO)
Our current agrifood systems impose huge hidden costs on our health, the environment and society, equivalent to at least $10 trillion a year, according to a ground-breaking analysis by the Food and Agriculture Organization of the United Nations (FAO), covering 154 countries. This represents almost 10 percent of global GDP.
According to the 2023 edition of The State of Food and Agriculture (SOFA), the biggest hidden costs (more than 70 percent) are driven by unhealthy diets, high in ultra-processed foods, fats and sugars, leading to obesity and non-communicable diseases, and causing labour productivity losses. Such losses are particularly high in high- and upper-middle-income countries.
Low-income countries are proportionately the hardest hit by hidden costs of agrifood systems, which represent more than a quarter of their GDP, as opposed to less than 12 percent in middle-income countries and less than 8 percent in high-income countries. In low-income countries, hidden costs associated with poverty and undernourishment are the most significant.
The report makes the case for more regular and detailed analysis by governments and the private sector of the hidden or ‘true’ costs of agrifood systems via true cost accounting, followed by actions to mitigate these harms.
“In the face of escalating global challenges: food availability, food accessibility and food affordability; climate crisis; biodiversity loss; economic slowdowns and downturns; worsening poverty; and other overlapping crises, the future of our agrifood systems hinges on our willingness to appreciate all food producers, big or small, to acknowledge these true costs, and understand how we all contribute to them, and what actions we need to take. I hope that this report will serve as a call to action for all partners – from policymakers and private-sector actors to researchers and consumers – and inspire a collective commitment to transform our agrifood systems for the betterment of all,” said FAO Director-General QU Dongyu.
Global leaders reach deal on structure for fund compensating developing countries for climate damage (The Hill)
After tense negotiations, global leaders over the weekend set up the operations of a fund to compensate developing countries for the damage they have suffered due to climate change. The fund itself was established at last year’s global climate summit, despite years of resistance from developed countries. However, that agreement left many details unresolved. This weekend, a “transitional committee” made up of several nations came up with a proposal for how to set up the fund.
In order to go into effect, the agreement will need to be adopted at the global COP28 climate summit that begins later this month. Under the proposal, the fund will be hosted by the World Bank on an interim basis. It also “urges” developed countries to provide support for the fund on a voluntary basis. The proposal further says that the fund will be governed by a board made up of both developed and developing countries. Decisions will be made by a four-fifths majority.
COP27 focused on mobilizing climate finance, COP28 to spotlight just energy transition: Mohieldin (ZAWYA)
Mahmoud Mohieldin, UN Climate Change High Level Champion for Egypt and UN Special Envoy on Financing 2030 Sustainable Development Agenda, said that COP27 in Sharm El Sheikh was concerned not only with mobilizing funds for climate action, but also with identifying projects to direct funds to for on-the-ground implementation.
During his participation in the LSEG webinar entitled “What to Expect from COP28,” Mohieldin added that COP27 gave climate finance significant attention. The conference discussed ways to reform international financial institutions (IFIs) and multilateral development banks (MDBs) to enhance their role in financing climate action, reduce the risks of financing and investing in climate and development projects in developing countries, and help these countries develop enabling policies and regulatory frameworks that encourage private sector and corporates to participate in financing and implementing climate action.
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South Africa could lose foreign investments due to strict visa regime (Ventures Africa)
In a recent news report, data released by the office of South Africa’s Presidency indicates that the country approved less than half of its visa applications from 2015 to 2021. Notably, South Africa (SA) rejected 52% of critical skills visa applications during this period. The application process, which some applicants have criticised, typically spans approximately 48 weeks, leaving many applicants disappointed after enduring a lengthy wait only to face visa denial.
This prolonged and uncertain timeline has raised concerns, especially among businesses and organisations. One such instance was reported by SA-based media company, BusinessTech, where a prominent business organisation, comprising car giants Volkswagen AG and BMW AG, expressed apprehension. They warned that these extensive delays, lasting up to 48 weeks for a visa application to be accepted, pose a significant threat to their expansion plans, investments, and job creation initiatives in South Africa. This situation is particularly worrisome in a country where the unemployment rate hovers at almost 33%.
Amidst South Africa’s economy enduring significant economic losses caused by frequent power outages leading, its restrictive visa policies have become another pressing issue. These policies have given rise to a slew of economic challenges. Foreign investors are considering relocating their businesses elsewhere due to the stringent visa regulations imposed by the country.
SA marks agricultural milestone after first soybean export to China (Eyewitness News)
South Africa marked a significant trade milestone in the agriculture sector after the country’s first soybean export to China. In 2022, the Department of Agriculture signed an export agreement with its biggest trade counterpart, China, which is the biggest consumer and importer of soybeans in the world.
The department said the shipment was evidence of other possibilities for growing the cereal and oilseed sector. It added that the transaction was in line with the recent BRICS (Brazil, Russia, India, China, South Africa) Summit mandate held in Johannesburg in September.
Spokesperson Reggie Ngcobo: “China is the biggest consumer and importer of soybeans in the world. This year, it is expected to import 97 million tons of soybeans compared to South Africa’s export potential of not even 1 million tons.”
World Bank warns automation of KRA systems may limit tax compliance (Nation)
The ongoing rapid automation of Kenya Revenue Authority (KRA) systems risks hurting compliance by individuals and businesses by locking out large groups of disadvantaged people such as the visually impaired, those without smartphones, internet connectivity, and limited technological know-how.
The taxman has recently gone big on automated systems including the filing of tax returns and real-time monitoring of sales transactions through electronic invoicing in a bid to maximise revenue collections. The World Bank, however, cautioned that the shift to automated systems risked secluding sizeable groups of taxpayers with negative consequences on compliance.
“Automation of tax measures will potentially lock out segments of the public including VMGs (vulnerable and marginalised groups) and other disadvantaged groups, due to digital illiteracy, lack of smartphones, poor electricity, and internet connectivity.
Consumer goods firms turn to tech in race for clients, cut costs (Nation)
Fast-moving-consumer goods (FMCG) makers are turning to digitisation of supply channels to ensure the right commodity is available to clients at the right time and quantities in the face of stiff competition. FMCG companies such as food processors, beverage manufacturers, pharmaceuticals, tobacco processors, personal care products firms, and household items makers use one or a combination of various methods to reach their customers, which are known as Route-To-Consumer (RTC) channels.
In recent decades, however, major shifts have taken place in the FMCG market, with companies increasingly shifting to the use of technology to reach their markets directly especially through e-commerce. Employing technology ensures that firms are able to track, in real-time, the products that are most in demand, the most lucrative locations and demographics as well as changes in consumer demand.
Value Addition On Domestic Products: Government unveils grand plan (Tanzania Daily News)
The government will today unveil a grand plan for value addition of domestic products seeking to generate higher export returns and contribute to economic development. The move comes at a time when demand for Tanzania’s products particularly food items in the East African Community is on an upward trend. Thus, the government initiative that will be tabled today in Parliament by the Minister of the State in the President’s Office responsible for Planning and Investment Professor Kitila Mkumbo, seeks to increase the benefits earned from exports of locally made products which are mostly traded in raw form.
“Value addition on domestic products will guarantee producers higher return, allow penetration of a new, potentially high-value market and extend the production season,” he told ‘Daily News’ in a telephone interview from Dodoma at the weekend. “Despite the increased exports of its domestic products in recent years, Tanzania has been gaining little because most of the goods are in raw form,” he noted.
On 3 November 2023 in Abidjan, the Board of Directors of the African Development Bank Group approved the 2023-2028 Country Strategy Paper (CSP) for Congo. Over the next five years, the institution will provide support to the country to develop sustainable infrastructure that will help strengthen value chains with high growth potential and improve human capital. In addition, it will underpin financial and economic governance, thereby enhancing the business climate in Congo.
The Bank Group’s support will be concentrated in four different sectors: agriculture, transport, financial and economic governance, and human capital. An emphasis will also be placed on cross-sector issues, such as employment, climate change and gender. There will be an additional focus on improving efficiency, be it in the implementation of operations, increasing the synergy between human capital reforms and business climate reforms, or private sector development within agricultural value chains.
Tunisia’s Economic Recovery Slows Down amid the Drought (World Bank)
Tunisia’s economic recovery slowed in the first half of 2023 as the country continued to grapple with persistent drought, external financing challenges, increasing domestic debt build-up of important public service enterprises and regulatory obstacles, according to the World Bank’s Fall 2023 Economic Monitor of Tunisia.
Despite some encouraging developments, including improvements in trade terms and a resurgence of tourism, Tunisia’s GDP growth for 2023 was forecast to be around 1.2 percent, a modest recovery when compared to counterparts in the region and half the growth rate of 2022. A growth forecast of 3 percent in 2024 is subject to risks created by the evolution of the drought, the financing conditions and the pace of reforms, the report said.
“Tunisia’s economy shows some resilience, despite ongoing challenges. Increased exports in textiles, machinery, and olive oil, coupled with growing tourism exports, have helped to ease the external deficit,” said Alexandre Arrobbio, the World Bank’s Country Manager for Tunisia. “Strengthening competition, increasing fiscal space and adapting to climate change are crucial actions to restore economic growth and build resilience to future economic and climatic shocks” He added.
Somalia now eyes IMF funding as budget goes past $1bn mark (The East African)
Somalia is eyeing funding from the International Monetary Funds as budgetary estimates reach $1 billion mark for the first time in history. According to financial proposals endorsed by the country’s Council of Ministers this week, the budget for the next fiscal year will reach $1,025,687,991, exceeding last year’s, if the federal parliament approves the estimates.
Somalia Minister for Finance Bihi Iman Egal indicated that the budgeted amount for 2024 fiscal year will be raised through domestic revenue and international grants. Last year, parliament passed a budget of $973,985,805.But Egal said it was subsequently increased “due to allocations for government healthcare services, education, and security”.
11 African central banks join Afreximbank’s continental payment system, PAPSS (Business Insider Africa)
PAPSS, a collaboration with the African Union, offers an alternative in which participants can conduct transactions in their currencies, eliminating the necessity for a third-party currency such as the U.S. dollar. “Trade goes well where payments can be made easily, and this is why we can only see trade pick up if we see improvement in efficient payments,” John Bosco Sebabi, PAPSS deputy CEO stated in an interview with CNBC.
Afreximbank estimates that more than 80 per cent of intra-African payments currently pass through either European or U.S. channels, incurring costs of up to $5 billion in fees and compliance expenses. The primary participants in the PAPSS’ system are central banks, which will serve as regulators and clearance agents, commercial banks, fintech companies, payment service providers, and their customers, including businesses operating throughout the region.
Feasibility study of the multinational Kenya-Uganda Expressway project (CCE)
The African Development Bank (AfDB) through its New Partnership for Africa’s Development and Infrastructure Project Preparation Facility (NEPAD-IPPF) has approved US$1.4 million grant to EAC for the feasibility study of the Multinational Kenya/Uganda: Kisumu-Kisian-Busitema-Busia Expressway Project.
Kenya-Uganda Expressway project is part of the Northern Corridor that runs from Mombasa to Burundi, Democratic Republic of Congo, Rwanda and Uganda through the port of Mombasa. It is the main corridor that transports the bulk of cargo that lands at the Indian Ocean ports inland to the five landlocked EAC Partner Sates.
The objective of the feasibility study is to determine the economic viability of upgrading the existing multinational road sections from single carriageway to expressway standards. The project has been prioritised by the respective Partner States and is expected to contribute to the delivery of economic infrastructure necessary for achieving tangible development outcomes for the region.
Africa’s Green Economy Summit brings together continent’s key role-players (Modern Ghana)
Africa’s Green Economy Summit taking place from 21-23 February 2024 in Cape Town builds on the success of this year’s inaugural event with a line-up of distinguished participants from across the continent.
The 2024 programme released this week deepens the continents participation, with extensive representation from key regions and role-players across a variety sectors. Africa’s Green Economy Summit is a vital link between global capital and sustainable projects in the continent. The Summit unites investors, project leaders, and policymakers, fostering connections and paving the way for an inclusive green economy and a sustainable future for all, said Dr MallFofana, Head and Africa Regional Director, Global Green Growth Institute (GGGI), C d’Ivoire. The strength of the African contingent for next year’s event is also underlined by the participation of the African Union Commission (AUC), which will be joining the Scaling Up Green Investments to Address Climate Change roundtable as part of the Green Recovery Action Plan (GRAP) programme.
Tinubu urges African leaders to prioritise blue economy for prosperity (Tribune Online)
President Bola Ahmed Tinubu has urged African leaders to prioritise the blue economy, stating that the blue economy holds the key to Africa’s prosperity. Tinubu, while speaking in Lagos at the 43rd Annual Council of the Port Management Association of West and Central Africa (PMAWCA) conference on Monday, underlined the critical role of the blue economy in the collective prosperity of African nations, emphasising that the sector holds immense potential for the entire continent.
“We must acknowledge the maritime sector as a central driver for the sustainable development of our nations,” he remarked.
The President went on to stress the interconnectedness of African countries through their maritime endowments even as he discussed the formation of the Ministry of Marine and Blue Economy, which highlights the Nigerian government’s commitment to unlocking the potential of the Blue Economy.
From November 1st to 2nd, 2023, AU-IBAR coordinated the Fourteenth Pan African National Codex Contact Point Officers Meeting. The primary objective of the 14th National Codex Contact Officers meeting was to engage in discussions concerning food safety, trade practices, and consumer health while ensuring that Africa’s perspective is well-represented on the global stage. The participants at this gathering included all National Codex Contact Point Officers and selected experts who contribute to various AU Expert meetings on Codex and AU-IBAR initiatives.
Codex Standards serve as a global benchmark for best practices in food safety, helping countries adopt these practices to reduce the risk of foodborne illnesses and ensure consumer well-being. By guaranteeing the safety and quality of food products, Codex standards instill confidence in consumers while aligning with Africa’s commitment to ending hunger by 2025, recognizing the pivotal role of food safety in achieving food security.
Furthermore, these standards promote fair trade by harmonizing international food standards, ensuring a level playing field. They also support Africa’s goal of tripling trade by 2025 and align with the African Continental Free Trade Agreement (AfCFTA), addressing trade-related health standards, thus contributing to a safer and more prosperous future for the continent.
President Museveni hits back at US over trade pact removal, says Uganda can thrive without AGOA (Business Insider Africa)
Museveni responded yesterday evening, reassuring Ugandans that the country can continue its progress without Western support. “I need to advise you not to be overly concerned about the recent actions taken by the American government to discourage their companies from investing in Uganda and removing Uganda from the AGOA list,” Museveni said on X, formerly Twitter. “Some of these actors in the Western world overestimate themselves and underestimate the freedom fighters of Africa,” the president added.
Last week, President Biden announced the removal of Uganda, along with three other African countries, including the Central African Republic, Gabon, and Niger, from the African Growth and Opportunity Act (AGOA), which grants exports from qualifying countries in Sub-Saharan Africa duty-free access to the U.S. market. The United States explained that the decision to exclude Uganda was due to the implementation of an anti-LGBTQ law, which was deemed a “serious violation” of internationally recognized human rights.
AGOA extension would provide certainty for investment, expansion in African countries (Engineering News)
President Cyril Ramaphosa noted on Monday that if extended beyond 2025 for a lengthy period, and if used more effectively, the African Growth and Opportunity Act (Agoa) can contribute significantly to the further diversification of African economies. Ramaphosa wrote in his weekly letter to the nation that Agoa is an important instrument for growing and transforming South Africa’s economy with the benefits felt through increased economic activity and the jobs created from this.
The US trade initiative, which came to be in 2000, is set to expire in September 2025. It has been renewed twice since it came to pass. Last week South Africa hosted the twentieth Agoa Forum, in Johannesburg, where the case for the extension, or reauthorisation, of Agoa beyond 2025 was made. Ramaphosa said the latest extension of Agoa, could enable countries to produce a wider range of products using the abundance of minerals, metals and agricultural goods produced.
US Trade Envoy Tai Talks Trade Policy in Africa as Summit Ends (Voice of America)
The annual summit of the African Growth and Opportunity Act — a program that has provided eligible sub-Saharan African countries with duty-free access to the U.S. economy since 2000 — wrapped up in South Africa on Saturday. Under AGOA, total goods imports into the United States were worth about $10 billion in 2022, compared with $6.8 billion in 2021. African leaders are asking the U.S. Congress to renew the trade policy for another 10 years or more before it expires in 2025.
To be eligible for AGOA, nations must respect the rule of law and protect human rights. On Monday, U.S. President Joe Biden said four countries would be dropped from AGOA: Niger and Gabon for coup d’etats, and the Central African Republic and Uganda for human rights violations.
Africa-US trade programme needs at least 10-year extension, AU says (ZWAYA)
Agoa: Fading opportunities? (Moneyweb)
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naamsa disappointed at yet another delay in NEV policy announcement (Engineering News)
The Automotive Business Council says it is disappointed that Finance Minister Enoch Godongwana has postponed the long-awaited announcement on government’s new-energy vehicle (NEV) policy to February next year. Godongwana made this announcement as he delivered his Medium-Term Budget Policy Statement earlier this week. Government originally promised to present an NEV policy to Cabinet in 2021.
naamsa CEO Mikel Mabasa notes, however, that the auto sector body is pleased that National Treasury plans to implement tax and expenditure measures to support the industry’s transition to NEVs. “We expected more from the Minister after the numerous engagements we had with government on this topic leading up to the budget announcement,” he adds.
“South Africa has procrastinated far too long, and we believe that the NEV policy pronouncement should be made by President Cyril Ramaphosa during his State of the Nation Address, and supported by fiscal measures the Minister of Finance has promised to now announce in the 2024 National Budget Review,” says Mabasa.
Coffee leads exports in AfCFTA trials (The Citizen)
Coffee is leading the list of agriculture exports as Tanzania participates in the African Continental Free Trade Area (AfCFTA) pilot programme. Dubbed “Guided Trade Initiative,” the window has seen the export of 273.28 metric tonnes of coffee, 52.4 metric tonnes of sisal fibre, and 37.6 metric tonnes of tobacco between May and June this year, according to the Ministry of Industry and Trade.
“We are still collecting data, but from May to July this year, Tanzania has sold goods to countries participating in the Guided Trade Initiative,” said the ministry’s principal trade analyst, Ms Sekela Mwaisela.
In October 2022, the Guided Trade Initiative was launched to pilot AfCFTA preferential trade among eight member states, including Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania, and Tunisia. The pilot involved 96 identified commodities, including ceramic tiles, tea, coffee, processed meat products, corn starch, sugar, pasta, glucose syrup, dried fruits, and sisal fibre, amongst others, in line with the AfCFTA focus on value chain development.
‘Value addition is key to doubling Uganda’s exports,’ says Odrek Rwabwogo (African Business)
The medium-term goal of Odrek Rwabwogo, special advisor to the President and chair of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), and his team is to lift the value of Uganda’s exports from just under $5bn to $12bn a year by 2028. PACEID put 13 of the country’s main products – coffee, sugar, grains, fruit and vegetables, poultry, tourism, beef, dairy, cement, steel, fish, flowers and plant materials and banana flour – under the microscope to see where the bottlenecks were and how to remove them. It was clear that going forward would entail considerable change – abandoning some traditional systems and procedures and venturing into hitherto unknown territory. The strategy is to expand trade in traditional markets, penetrate new markets and add value across the board.
Transport costs making Ugandan exports uncompetitive, says report (Monitor)
Transport and logistics comprise between 35 percent and 42 percent of production costs in Uganda, according to a report by Standard Bank, which trades as Stanbic in Uganda. The report - Africa Trade Barometer - which measures performance of trade in 10 African countries including Uganda, Angola, Ghana, Kenya, Mozambique, Namibia, Nigeria, South Africa, Tanzania, and Zambia, notes that the cost of transport and logistics in Uganda is too high to enable production of competitive products with countries in Asia, majority of which have an input of only 8 percent on transport and logistics.
“This poor infrastructure undermines the competitiveness of Ugandan exports and significantly increases the costs of receiving imports. An improvement in the transport and logistics infrastructure in Uganda may, therefore, be an important enabling factor that allows Ugandan businesses to realise the benefits of increased intra-African trade,” the report reads in part.
Trade reforms can improve food supplies in West Africa (ZAWYA)
Regional and continental trade pacts open the door to free trade in food and farm goods. The 10th Annual Borderless Conference in Tema, Ghana brought together experts from government, business, and international organizations to look at how to deliver on that potential. Borderless Alliance, a group which advocates for removing trade barriers, organized the event with the German Development Agency GIZ to look at trade within the 15-member Economic Community of West African States (ECOWAS).
‘This 2023 edition holds particular relevance for the private sector,’ said Jonas Lago, President of Borderless Alliance. ‘It falls upon us to conduct the necessary analysis and devise solutions to tackle the prevailing challenges. Our success in the ECOWAS region would serve as blueprint in the Africa continental area.” These insights revealed that 60% of the burdensome regulations originate domestically. Using the Trade Obstacle Alert Mechanism (TOAM), a tool developed by ITC, Vianney Lesaffre showed that 51% of the obstacles reported pertain to the agricultural sector.
‘AI will benefit Africa more than any other continent’ says Smart Africa’s Lacina Koné (African Business)
In April this year, Smart Africa, a consortium of African states and organisations dedicated to the acceleration of access to ICT on the continent and a thriving digital economy, held its Transform Africa Summit in Victoria Falls, Zimbabwe. This was the first time the Summit was held outside of Kigali, which is where Smart Africa is headquartered.
For Lacina Koné, director general of Smart Africa, the Summit was a success. Attended by five heads of state alongside ministers from 44 countries and over 4000 delegates from 91 countries around the world, it also saw the consummation of several significant deals for the continent’s digital future. For Koné, the Summit was an opportunity to rubberstamp the organisation’s strategy and once again put to the fore some of the key agenda points that need to be addressed if the continent is not to be left behind by the digital revolution.
How the mobile industry will be integral to Africa’s growth (African Business)
The United Nations Conference on Trade and Development (UNCTAD) estimates that, if effectively harnessed, digital trade in Africa has the potential to contribute an additional $180bn to the continent’s GDP by 2025. Despite this tremendous potential, e-commerce in Africa is currently underutilised. In 2022, out of a potential market of 1.2bn people, only 400m used e-commerce services. Several factors hinder the sector’s growth, including limited financial resources and digital skills, regulatory gaps, poor implementation of legislation, low adoption of digital payments, and challenging logistics and delivery.
Additionally, limited smartphone penetration, low digital literacy, and a lack of confidence in online product quality impede e-commerce adoption. These are the conclusions of a report prepared and published by GSMA Central Insights in collaboration with the United Kingdom’s Department for Business and Trade (DBT). The report, titled E-commerce in Africa: Unleashing the opportunity for MSMEs, was launched at the 2023 Mobile World Congress in Kigali, Rwanda. The report also makes some key recommendations for policy makers to address the challenges and enable the sector to reach its potential.
Africa must build a new social contract for a sustainable development says, ECA’s Claver Gatete (UNECA)
A new social contract that will boost fair and equal opportunities for citizens is a must to accelerate sustainable development in Africa, the new Executive Secretary of the Economic Commission for Africa (ECA), Claver Gatete, has told a meeting of experts and policy makers which opened in Addis Ababa, Ethiopia, this week.
“Governments must increase their commitment to forging new social contracts that ensure equal rights and opportunities for all, while integrating employment, sustainable development, and social protection,” said Mr. Gatete, in remarks delivered by the ECA Deputy Executive Secretary and Chief economist, Hanan Morsy, at the opening of the Fifth Session of the Committee on Social Policy, Poverty and Gender of the ECA being held under the theme, Building New Social Contracts in Africa: Choices to fulfill Developmental Aspirations.
Investing in the female future: Why we need better financing for women entrepreneurs (UNCTAD)
For developing countries, having more female entrepreneurs offers the benefits of more jobs, new skills and growth for communities and economies. But gender inequalities in society mean women who are running or starting a business often face daunting challenges securing loans or investment. Listen in to UNCTAD’s Stephania Bonilla to find out how we can increase investment in women and unlock their full potential.
AGOA Forum updates
US Committed to ‘Seamless’ Africa Trade Pact Renewal, Tai Says (Bloomberg)
The US aims to ensure that its preferential trade pact with Africa is replaced without interruption when it expires in two-year’s time, while bringing it up to date. “We want to make sure that as of Sept. 30, 2025, that there will be another AGOA that will pick up from this one,” said US Trade Representative Katherine Tai, referring to the African Growth and Opportunity Act. “It is a seamless renewal that we’re looking for,” she said in an interview with Bloomberg Television in Johannesburg broadcast on Friday.
Tai said one of the developments the US wants to ponder is the launch of the African Continental Free Trade Area, which the World Bank says can lift 30 million people out of extreme poverty. “As part of looking at the AGOA program, we should try to figure out whether there’s more and what more we could do with the AGOA program to complement the program and the aspirations that are within the AfCFTA,” she said.
AGOA, AfCFTA can be complementary (SAnews)
Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene, says the United States of America’s African Growth and Opportunity Act (AGOA) initiative and the AfCFTA can be complementary and supportive trade initiatives. He was speaking at a media briefing on the side lines of the ongoing AGOA forum held in Johannesburg.
At its core, the American driven AGOA is aimed at enhancing market access for countries in Sub-Saharan Africa while the African Union’s AfCFTA is aimed at significantly boosting and enhancing intra-trade across all African states. “An example of how that alignment can take place is if you look at the protocol on investment which establishes enhanced legal rights for investors but also enables countries to regulate investment inflows in the public interest. “Similarly in the area of intellectual property rights. The USTR [United States Trade Representative] under Ambassador [Katherine Chi Tai] has been very clear that they support reforms of the global patent system so that it is at the service of public health and at the service, in our case as the continent, at the service of industrial development and job creation.
America suspends duty-free access to four African countries (The Economist)
In the eyes of American officials, the African Growth and Opportunity Act (AGOA) is about “more than just trade”. The flagship policy grants duty-free access to America for almost 7,000 products from sub-Saharan Africa. To qualify, countries must respect human rights, uphold labour standards, promote a market-based economy and eliminate barriers to American investment, among other criteria.
But can a system of trade preferences also be a tool of foreign policy, without stifling trade’s potential for development? That question will rumble beneath the surface as American and African officials gather in Johannesburg between November 2nd and 4th for the annual AGOA forum. Out of 45 countries that could benefit from the scheme, ten are already ineligible. On October 30th President Joe Biden said four more – Niger, Gabon, CAR, and Uganda – would be kicked out next year, while Mauritania would be reinstated after making progress on workers’ rights.
African apparel industry’s future hangs on a U.S. thread (The Hindua)
Apparel companies and industry insiders warn that Africa risks a once-in-a-generation shift away from Chinese manufacturing passing it by, with an estimated 240,000 to 290,000 jobs such as Nasimiyu’s under threat. U.S. officials visiting South Africa this week to meet African trade ministers will face calls to reauthorise the African Growth and Opportunity Act (AGOA) which expires in 2025.
Ramaphosa seeks lengthy and inclusive Agoa extension to stimulate investment, regional value chains (Engineering News)
Opening the Agoa Forum in Johannesburg on Friday, Ramaphosa also underlined the “great value” of retaining all beneficiary countries to support the development of regional value chains and help industrialisation on the continent.
Ramaphosa said an early reauthorisation and renewal would help to ensure that the legislation achieved its objectives and reached its full potential. “An early renewal can help to strengthen trade and investment. “At the same time, we see potential to enhance Agoa with reforms that will add more products and will make it easier for small and medium-sized businesses to use it,” Ramaphosa said. Total goods imports into the US under Agoa recovered to $10-billion in 2022 from $6.8-billion in 2021, and South Africa emerged as the top exporter, with $3.6-billion in exports to the US last year.
Patel outlines vision for prosperous Africa united in trade (SAnews)
AGOA important in reducing inequalities in Africa: Brand SA (SABC News)
AGOA vital to sustainable growth, jobs, and industrialisation - Standard Bank (Uganda Business News)
DDG Zhang calls on LDCs to explore ways of boosting agriculture and services trade
Speaking at a workshop on least-developed countries (LDCs) and the multilateral trading system on 3 November at the WTO, Deputy Director-General Xiangchen Zhang said: “We need to keep building on the progress made to support the greater integration of LDCs into global trade.” The event provided an opportunity for WTO members and trade experts to discuss the findings of a new study outlining the participation of LDCs in agriculture and services trade.
The Coordinator of the WTO’s LDC Group, Ambassador Kadra Ahmed Hassan of Djibouti, said: “One-third of people living in LDCs are undernourished and LDCs remain on the side-lines of international services trade. We need to keep exploring what more can be done to support LDCs in overcoming their vulnerabilities and boosting their exports.”
Participants examined the findings of a new study by the WTO and the Enhanced Integrated Framework (EIF), which outlines LDCs’ priorities in agriculture and services trade. Entitled “LDCs and the multilateral trading system”, the publication stresses that certain governmental trade and non-trade measures could undermine the prospects of LDCs’ exports.
Europe’s Rapid Renewable Shift May Depend On Chinese Materials (OilPrice.com)
After decades of globalization and free-trade-oriented energy policies, the West is taking pains to separate itself from Eastern energy markets. The impetus of the market fracture came early last year, when Russia illegally invaded Ukraine and inadvertently kicked off an all-out energy war with Europe. The global energy crisis that followed was a wake-up call for the West, which realized that it allowed itself to become dangerously reliant on a small number of streams of energy production, several of which are headed by volatile and authoritarian governments. It’s a recipe for an energy security disaster.
China, Africa to keep deepening industrial chain cooperation (People’s Daily Online)
A report titled “Chinese Investment in Africa 2023” was recently released in Beijing. By analyzing over 90 Chinese companies and 20 China-Africa cooperation projects, the report explores the impact of the China-Africa policy framework and existing cooperation models on the African industrial chain. It particularly emphasizes the role of Chinese enterprises in the development and transformation of the African industrial chain, and highlights the future potential of China-Africa industrial chain cooperation.
The report showcases a wide range of examples to demonstrate the contributions made by Chinese companies to the transformation and development of Africa’s industrial chain in various sectors such as agriculture, manufacturing, digital economy, pharmaceuticals, logistics, and infrastructure.
US, China To Seek Climate Progress In Talks Before Dubai Summit (Barron’s)
The United States and China, the world’s two largest greenhouse gas emitters, said Thursday that they will hold climate talks this weekend in California, raising new hopes for headway at the COP28 summit in Dubai. Liu Pengyu, spokesman for the Chinese embassy in Washington, said the two sides “will have an in-depth exchange of views on promoting action and cooperation on climate change and supporting the success of COP28 in Dubai.”
Annual Climate Finance Exceeds $1 Trillion In 2021, But More Is Needed To Tackle The Climate Crisis: Report (SolarQuarter)
In a groundbreaking development, the annual flow of climate finance reached a historic milestone in 2021, surpassing $1 trillion for the first time since the adoption of the Paris Agreement in 2015. According to the Climate Policy Initiative (CPI), the Global Landscape of Climate Finance 2023 report revealed that the average annual flows in 2021 and 2022 amounted to nearly $1.3 trillion, doubling compared to 2019 and 2020 levels. This substantial increase can be attributed in part to improved data availability and enhanced methodologies, accounting for approximately 28% of the rise. This signifies a positive trend towards compiling, tagging, and making higher quality climate finance data publicly available.
While this achievement is laudable, it’s important to note that the $1 trillion threshold represents just 1% of the global Gross Domestic Product (GDP). Dr. Barbara Buchner, Global Managing Director at CPI, emphasized that all stakeholders must accelerate investments to significantly reduce future economic and social costs. However, it’s not just about costs; substantial opportunities exist for businesses to pursue low-carbon and climate-resilient pathways.
Climate action: ‘Take steps to close the adaptation gap, now’ (UN News)
The Adaptation Gap Report 2023 issued by the UN Environment Programme (UNEP), says the world is underprepared, under invested and lacking the necessary planning, leaving us all exposed. It warns that instead of speeding up, progress on adapting to climate change is stalling. The slowdown extends to finance, planning and implementation, says UNEP, with massive implications for loss and damage, particularly for the most vulnerable.
“Today’s report shows the gap in adaptation funding is the highest ever. The world must take action to close the adaptation gap and deliver climate justice,” said the UN Secretary-General António Guterres, commenting on the report’s findings.
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Poultry body calls for appropriate support policies to help sector recover from avian flu (Engineering News)
The South African Poultry Association (Sapa) has urged government to put in place policies that will help especially small-scale poultry farmers to recover from the recent outbreaks of Highly Pathogenic Avian Influenza (HPAI). Sapa has also reported that the sector now seems to be recovering from HPAI, as a result of swift action by the industry, including the imposition of strong biosecurity protocols and monitoring programmes. So far, 8.5-million chickens have been culled (of which some 6-million were egg layers and more than 2.5-million were broiler breeder chickens).
Farmers were, however, finding it difficult to recover their costs, particularly during this recovery process. Many livelihoods were at risk. “A change in [government] policy is needed to support impacted producers, and such a cost recovery mechanism will serve well to keep consumer prices low and our farmers afloat,” urged Sapa Broiler Organisation GM Izaak Breitenbach.
Lesotho: Snowball Effects of Poultry Ban Adversely Affecting Retailers (Lesotho Times)
SARS welcomes MTBPS revenue revision (SAnews)
The South African Revenue Service (SARS) has welcomed the tabling of the Medium Term Budget Policy Statement (MTBPS), despite the statement’s downward revision of revenue collection by some R56.8 billion. The MTBPS was tabled by Finance Minister Enoch Godongwana in Parliament on Wednesday.
“SARS has continued with its core functions of collecting all that is due to the fiscus. During the first half of the current fiscal year, we have collected gross revenue totalling R1 016.3 billion, growing by 4.5% and recording a surplus of R1.0 billion against the Budget 2023 estimate.
“This is a good news story and offers hope in a currently challenging environment. Through focused commitment, SARS has paid back to the economy through refunds for the first six months of the current fiscal year an amount totalling R212.2 billion, higher by R24.6 billion over the prior year and higher than the Budget 2023 estimate by R30.1 billion,” the revenue service said in a statement.
Investment, Reform and Recovery: Namibia’s economic vision unveiled (Namibia Economist)
Namibian Finance Minister, Mr Iipumbu Shiimi, delivered his 2023/2024 Mid-Term Budget review on 31 October 2023, providing amongst others insights into the achievements, challenges, and performances of State-Owned Enterprises (SOEs). The Mid-Term Budget Review holds a pivotal role in the overall budgetary process as it sets the tone for the fiscal framework in the upcoming main budget. The budget serves as a cornerstone of the government’s economic strategy, reflecting the nation’s socioeconomic policy priorities by translating commitments into expenditures. This encompasses projections for key economic indicators like inflation, productivity growth, unemployment rates, and the balance of trade.
The economic outlook is scrutinized closely by investors, rating agencies, taxpayers, and the public at large. Attaining economic and fiscal stability hinges on optimizing domestic resource mobilization and enacting robust legislative measures to combat revenue leaks and illicit financial flows.
Angola forecasts 69 percent debt-to-GDP ratio for 2024 (CGTN Africa)
The Angolan government anticipates a 2.8 percent growth in gross domestic product (GDP), with the total public debt ratio expected to be about 69 percent of GDP in 2024, said Ottoniel dos Santos, secretary of state for finance and treasury, Wednesday in the capital city of Luanda.
During the public exhibition of the International Monetary Fund’s report on the Regional Economic Outlook for Sub-Saharan Africa, Ottoniel dos Santos said that the Angolan government’s debt stock is about 52 trillion kwanzas (about 62.9 billion U.S. dollars), with 14 trillion kwanzas being domestic and 38 trillion kwanzas external, and the current debt-to-GDP ratio in Angola is 85 percent, according to Angola Press Agency, the official news agency of Angola.
“The Gambia has consolidated its democratic transformation in recent years and has weathered more resiliently successive exogenous shocks—the COVID-19 pandemic and Russia’s war in Ukraine—relative to peer countries. Economic growth, supported by tourism and public and private construction (partly financed by strong remittances), is expected at 5.6 percent this year (up from 4.9 percent in 2022). However, headline inflation has continued to accelerate, reaching 18.5 percent (y-o-y) in September 2023, driven mostly by elevated international commodity prices, the adjustment in electricity tariffs, and some depreciation of the dalasi.
“Discussions also focused on the structural reform agenda to unlock growth potential, foster economic diversification, and harness the private sector’s full potential in creating jobs. Strengthening the business environment, expanding regional trade, and increasing women’s economic participation are crucial to boost growth potential. Given The Gambia’s high vulnerability to climate change, it is also important to enhance climate risk management and increase investment in climate-resilient infrastructure.”
Logistics convention in Nairobi, Kenya to boost Intra-Africa Trade (Bizna Kenya)
The logistics sector in East Africa plays a crucial role in the economic development of the region. The sector encompasses transportation, warehousing, freight forwarding, customs clearing, shipping and related services that are essential for moving goods and services in the global supply chain. The region has a growing population, which has led to an increase in demand for consumer goods.
Advancements in technology, geopolitical shifts, an increase in service demand, industrial activities, e-commerce ventures and changing customer expectations continue to cause significant shifts in the industry. There is also the implementation of the African Continental Free Trade Area (AfCFTA) Agreement that came into force on 30 May 2019, whose mandate is to boost intra-Africa trade across all sectors of the continent’s economy. Increasing E-Commerce, adoption of Technology, demand for Sustainable Logistics, Green Customs, World Trade Organization Trade Facilitation Agreement (WTO-TFA), regional integration and the increasing need for end-to-end facilitation.
It is in this context that the Global Logistics Conference intends to discuss and analyze the latest trends, innovations, insights, and challenges in the logistics industry while providing an opportunity for logistics professionals from around the region and world to share their experiences and knowledge on the latest industry developments.
“As a signatory of AfCFTA, Kenya was among the first countries to pilot the intra-Africa trade by exporting tea and chloride batteries to Ghana. This conference shows the government’s commitment to growing and supporting the logistics industry. It will also provide an opportunity for MSMEs to conduct trade with the rest of the continent and world”, said Mr Emanuel Wangwe, Director Planning, State Department of Micro Small and Medium Enterprises (MSME).
Plans to boost intra-Africa trade underway (The Herald)
The African Continental Free Trade Area (AfCFTA) with support from the World Food Programme (WFP) and in collaboration with the Ghana Community Exchange convened a meeting of heads of African commodities exchanges and associated entities in Accra, Ghana, recently to establish an Association of African Commodities Exchanges under the AfCFTA umbrella.
The Zimbabwe Mercantile Exchange (ZMX) along with other 15 African commodity exchanges participated in the forum held in Ghana and subsequently joined and became pioneer members of the General Assembly of the Association of African Commodities Exchange (A-ACX). Trade ministry officials from participating countries attended the meeting.
The A-ACX seeks to establish a framework for the operationalisation of intra-continental commodities trading under the AfCFTA protocol. To facilitate the immediate commencement of activities of A-ACX , a steering committee was formed comprising CEOs from five of the member commodity exchanges, including ZMX CEO Mr Collen Tapfumaneyi. Other members of the committee were drawn from Ghana, Nigeria, Ivory Coast and Tanzania.
‘‘In line with the objectives of AfCFTA, the A-ACX strives to enhance intra Africa trade across all sectors of Africa’s economy, thereby fostering economic growth for the continent. We are deeply honoured to have been appointed as a committee member. We acknowledge the significance of this appointment and the potential for ZMX AND Zimbabwe at large to play a meaningful role in advancing the objectives of the A-ACX and the broader AfCFTA initiative,’’ he said.
Ghana, Togo to ensure smooth operations at border post within 6 months (Graphic Online)
Ghana and Togo have pledged to address challenges affecting the smooth operation of the Noepe-Akanu Joint Border Post within six months. This is to ensure efficient operations at the post ahead of its management by ECOWAS next year.
Per the bilateral agreement, Ghana is to provide water and information and communication technology (ICT), while Togo will provide electricity for the facility. They have further agreed on a clear demarcation of roles of various focal persons of the two countries. This was the outcome of an inter-ministerial meeting on the operationalisation of the Noepe-Akanu joint border post between the two countries last Tuesday.
AfCFTA: how port summit will boost trade, by NPA chief (The Nation)
Nigerian Ports Authority (NPA) will provide regional leadership in port competitiveness in Africa, Managing Director, Mohammed Koko, has said. Koko noted the event, holding from Monday at Lagos Continental Hotel, Victoria Island, will further boost realisation of African Continental Free Trade Area (AfCFTA).
President Bola Tinubu is to open the conference, titled: “The Role of Ports in the African Continental Free Trade Area (AfCFTA).” The forum is a platform for cross-fertilisation of ideas, experiences and knowledge sharing to guide policy action towards maximising the maritime comparative advantage of the sub-region.
State eyes freight profits by adopting cabotage law (The Standard)
Kenya targets a stake in international freight rates for imports and exports by strengthening its local shipping industry, a State official has said. Mining, Blue Economy and Maritime Cabinet Secretary Salim Mvurya said the country is rallying other Africa countries to embrace the use of domestic shipping and maritime services to reduce payment of most of the freight to international shipping lines.
State officials preparing for the Africa Maritime Cabotage and Blue Economy conference slated for November 8 to 10 in Mombasa also said in interviews that Kenya spends Sh600 billion on freight rates paid to foreign shipping lines annually in imports and exports costs which can be reduced with implementation of a cabotage policy. They said the policy will protect and nurture the local shipping industry. The officials also believe the use of domestic shipping and maritime services will create employment for youth
African port development will mitigate flooding (Port Strategy)
World’s Ports get a step-by-step guide to implementing Port Community Systems (Hellenic Shipping News)
Following 24 months of effort from 88 contributors, the World Bank and IAPH has released the #IAPH2023 conference edition of Port Community Systems – Lessons from Global Experience. The edition offers port communities a step-by-step guide to implementing a PCS and explains its advantages for developing countries.
The report is a direct action following on from last year’s World Bank IAPH summary report “Closing the Gaps – key actions in digitalization, decarbonization and resilience the maritime sector”, and is aimed precisely at reducing the digital divide, with practical advice combined with concrete case studies of implementation in a diverse range of countries.
The publication describes how Port Community Systems have improved port operations around the world, from both high and low-adoption rate regions. It provides insights for policymakers, port authorities, and logistics providers on how to enhance PCS adoption and leverage its benefits. The study also clearly identifies where the gaps are in adoption, by examining PCS implementation in over 897 ports based on UNCTAD’s top ports listed in the Liner Shipping Connectivity Index (2022:Q4) covering 201 countries and territories.
Tanzania, EAC competition body ink deal to boost trade (The Citizen)
Calls for increased cross border trade in East Africa were made here yesterday as Tanzania inked a deal with the regional competition authority. Officials in attendance at the ceremony said the Memorandum of Understanding (MoU) should also advance the competition policy and law. “This agreement should work in such a way as to facilitate cross border trade in the region,” said Ms Lilian Mukoronia, the Registrar of the East African Community Competition Authority (EACCA).
Under the MoU, the two institutions have set up a working group tasked with implementing the prioritised activities through annual work plans. Tanzania is the second country among the seven EAC member states to sign an MoU with the regional competition authority after Kenya. In May this year, the Arusha-based EACCA signed its first technical agreement with the Competition Authority of Kenya (CAK). The agreement laid out modalities through which the agencies will mitigate competition infringements with cross border effects.
East African nations take key step to creating a harmonized labour market (The Independent Uganda)
Ethiopia, Kenya and Tanzania have adopted a framework which will facilitate mutual recognition of qualifications and awards and subsequently free mobility of skilled labour and workforce and contribute to creating a harmonized labour market. The East African countries have validated, and adopted the Regional Framework for Occupational Competency Assessment and Certification (RFOCAC) and the Regional Policy Framework for TVET Integration (RPFTI) at a workshop held recently in Mombasa, Kenya.
The RFOCAC and RPFTI are two key documents that will help the three countries to establish harmonized and standardized occupational competency assessment and certification systems, through a well-integrated TVET system in the region.
Speaking at the Opening Session of the workshop, the Principal Secretary for State Department for Technical and Vocational Education and Training, Republic of Kenya, Dr. Esther Muoria, said: “The development of the Regional Framework for Occupational Competency Assessment and Certification and the Regional Policy Framework for TVET Integration is a significant milestone in our efforts to integrate TVET systems in East Africa. These frameworks will help us to establish a harmonized TVET system in the region, which will facilitate mutual recognition of qualifications and awards and subsequently free mobility of skilled labour and workforce and contribute to creating a harmonized labour market.”
MAN: AfCFTA Key To Achieving Manufacturing Sector’s Contribution To GDP (New Telegraph)
The Manufacturers Association of Nigeria (MAN) has hinted that it has become a matter of necessity and urgency to deepen awareness of the imperative of the African Continental Free Trade Agreement (AfCFTA) in the manufacturing sector of the economy. This has become urgent considering the latest reports from the stable of National Bureau of Statistics (NBS), putting the country’s manufacturing sector’s total output contribution at 10 per cent, with an average growth rate of approximately 2.3 per cent over the last five quarters.
The President of MAN, Otunba Francis Meshioye, who stated this during a chat with New Telegraph in Lagos, said the country needed to develop the right strategies to position the economy as the number one manufacturing hub of the African economy with AfCFTA implementation. Specifically, the MAN president explained that manufacturing sector development was key to industrialisation in Nigeria even though, sadly, industrialisation in Nigeria remains at a very low ebb.
According to him, evidences from several parts of the world, including China, the United States, Japan, Germany, and South Korea, have shown the importance of the manufacturing sector in building a resilient economy. Meshioye cited, for instance, in 2021, average manufacturing output accounted for as high as 35 percent of Ireland’s GDP growth; 27.44 per cent in the case of China, and 48 per cent of Puerto Rico’s economy.
Gambia hosts biennial Africa Competition Forum (The Point)
The ACF Biennial Conference serves as a platform for competition authorities across the African continent to come together, exchange knowledge, share experiences, and collaborate in the development of effective competition policies and practices. It also creates an opportunity for professionals to engage and learn and thus contribute towards developing solutions to enhance the effectiveness of competition regulation in Africa.
The event was held on theme -” Fostering Competition for Inclusive Growth and Sustainability in Africa”.
The African Competition Forum (ACF) is an informal network of African national and multinational competition authorities and the principal objective of the ACF is to promote the adoption of competition principles in the implementation of national and regional economic policies of Africa.
Ms. Senghore, however, reminded that signing and adoption of the Competition Protocol of the Africa Continental Free Trade Area welcomes a new era of cooperation amongst competition agencies operating in the Free Trade Area.”This is essential in creating a single market for goods and services in Africa with the ultimate goal of increasing trade within the continent and boosting economic growth. I hope this conference will lead to the strengthening of work relationships between the national Competition Authorities and Regional Competition Authorities in a bid to promote and enforce competition across Africa effectively and efficiently. We know that Governments cannot do it all alone and therefore the participation of the Regional Competition Authorities complement Government’s efforts” she stated.
Banks need to develop human capital (BusinessGhana)
Dr Jim Yong Kim, a Former World Bank Chief, has called on Multilateral Development Banks (MDB) to “step up,as they are much better placed than any other market-based solutions to solve the challenge of lost and insufficient human capital. According to the former World Bank chief, the African Development systems and other MDBs were well placed to help build human capital development systems and policies that are integrated across social sectors. “Investing in human capital is going to be a very powerful driver of economic growth,” he said.
Dr Kim was delivering the 2023 Kofi Annan Eminent Speakers’ Lecture at an online event organised by the African Development Bank Group’s (AfDB) African Development Institute (ADI). The session, titled “The Changing Global Development Finance Architecture: Implications for Multilateral Development Banks post COVID,” also featured Dr Akinwumi Adesina, the President of the African Development Bank Group.
IMF predicts uneven economic rebound for sub-Saharan Africa in 2024 (Polity.org.za)
While economic growth in sub-Saharan Africa is expected to rebound 4% in 2024, up from 3.3% in 2023, resource-intensive economies will grow more slowly in the year ahead than more diversified, non-resource intensive economies. This was predicted in the International Monetary Fund’s (IMF’s) Regional Economic Outlook for sub-Saharan Africa, published in October.
IMF chief of division in charge of regional studies in the African Department Luc Eyraud presented the Regional Economic Outlook report at a South African Institute of International Affairs (SAIIA) event, held at the University of the Witwatersrand (Wits), earlier this week.
Eyraud noted that the report projects that major gains for sub-Saharan African countries could be achieved through the implementation of the African Continental Free Trade Area Agreement which has “the potential to raise the real per capita income of the median African country by more than 10 percent. Signatories have agreed to eliminate tariffs on 90 percent of non-sensitive products by end-2025, and 7 percent of tariff lines on sensitive goods by 2030.”
On sub-Saharan Africa’s mineral abundance, the report notes that as cleaner energy becomes more sought after, natural resources, such as oil, may become less important, while resources, such as lithium, may become more important.
An IMF report, ‘Light on the Horizon?’, notes that, “Without reform, external funding is less effective. But without funding, reform is more difficult. Emerging from a long crisis and with some signs of light on the horizon, now is the time for the region and the international community to come together - the more we help the region make progress now, the more resilient the global economy will be for all.”
Absa and AfDB agree US$150mn trade finance facility (Global Trade Review)
The African Development Bank (AfDB) has approved a US$150mn trade finance facility to help South African lender Absa Group scale up its social and sustainable financing. The AfDB also agreed a ZAR 1.7bn (US$90mn) sustainability-linked loan to the lender and an investment of ZAR 1bn (US$53.8mn) in Absa’s first social bond issuance, both of which will be classed as qualifying capital.
The trade finance facility will focus on promoting access to funding for businesses, improving trade facilitation in low-income African countries and fostering intra-Africa trade, the AfDB says. It adds that the financing will enable Absa to increase its social and sustainable lending, particularly to SMEs, and support the provision of long-term affordable housing mortgage financing in South Africa.
Cameroon Becomes 25th State Signing African Air Transport Market MoI (Ethiopian Monitor)
Cameroon has become the 25th African Union member state to sign the Single African Air Transport Market Memorandum of Implementation, or SAATM MOI, the AU says. The signing took place at the AU Headquarters in the presence of AUC Infrastructure Commissioner Amani Abou-Zeid and Cameroon’s Ambassador to Ethiopia and Permanent Representative to the AU Churchill E. Monono. Commissioner Abou-Zeid commended Cameroon for signing the MOI and the revised Constitution of the African Civil Aviation Commission (AfCAC). Such decisive actions are instrumental to achieving the much-needed economic integration of Africa, the Commissioner noted.
“Fast-tracking the operationalization and implementation of SAATM has been one of our topmost priorities in order not only to support the recovery of the aviation industry after the COVID-19 pandemic but to also reposition the African aviation sector on a renewed path that will enable Africa’s socio-economic integration”, said Abou-Zeid.
Currently, 37 countries have signed the solemn commitment and 25 have signed the Memorandum of Implementation. The member states that have joined the SAATM represent 90% of intra-Africa traffic and serve over 600 million people. As more nations participate, the benefits will likely grow exponentially. Dr. Abou-Zeid said it “will be a game changer for the African Aviation Industry.”.
SMEs in Ghana urged to use global standards to expand trade under AfCFTA (Ghana Business News)
Director–General of the Ghana Standards Authority (GSA), Prof Alex Dodoo, has urged Ghanaian Small and Medium Enterprises to utilise global standards and tools to expand trade across Africa under the Africa Continental Free Trade Area (AfCFTA) agreement. He said with Ghana hosting the AfCFTA, it was time the SMEs exploited the opportunity to boost trade on the continent and beyond. Professor Dodoo was speaking on the occasion of the 17th anniversary of GS1 Ghana, which manages barcode systems used by retailers, suppliers and partners in Ghana. It is an affiliate of GS1 Global.
Prof Dodoo noted that Ghana Standards Authority was already leading the way and giving guidance as needed, adding with international standards and internationally standardised means of identification, Ghanaian goods and services would sell widely. He announced that Ghana’s Pharmaceutical Traceability Strategy would leverage GS1 barcodes and QR codes.
Stop blocking borders, African leaders told (The East African)
Democratic Republic of Congo (DRC) Information and Communication Minister Patrick Muyaya has challenged African political leaders to stop “imprisoning” their citizens by blocking borders over political differences, as this is a barrier to intra-Africa trade. He said politicians should facilitate building of bridges with neighbours rather than erecting blockades.
“The DRC joined the East African Community to connect with the region. Even before we joined the EAC, we used to get food from Uganda. We would like politicians to stop being prisoners of past ideals and embrace the spirit of cooperation to build the subregion before we go out to trade with Africa and the world,” the minister said. He was making the keynote address at the East African Entrepreneurship Conference & Expo organised by the Nation Media Group in Kinshasa.
Senator Lelo challenged the EAC to produce goods for sale outside the region but underscored the need for cooperation and peace. “East Africans should stop being consumers only and produce their own goods. But we need to be comfortable everywhere in the region as we seek the raw materials for production. Africa is a gun and Congo is the trigger. The Congolese need support to trigger development,” Lelo said.
Panel stresses need for supply chain diversification (Engineering News)
As Russia continues to wage war in Ukraine, it has shone a spotlight on supply chains and the sourcing of materials. Speaking during a panel hosted by British newspaper Financial Times during its Energy Transition Summit, on November 1, Ukrainian energy holding company DTEK CEO Maxim Timchenko pointed out that, because many international contractors had left the country owing to the conflict, local companies and government had had to learn how to transport goods safely from ports and how to install infrastructure even in such circumstances.
He said many countries could learn from how Ukraine had been building its energy sector, in part to be more resilient. Timchenko explained that, historically, it took one missile to destroy a coal-fired power station, whereas it required fifty missiles to destroy a Ukrainian wind farm. “We look at security of supply from a practical angle from what we have experienced in Ukraine. My advice is to learn lessons from this war, including being less dependent on gas from Russia,” he added.
The Arab-Africa Trade Bridges Program Announces the Membership of the Federal Republic of Nigeria (ZAWYA)
The General Secretariat of The Arab-Africa Trade Bridges (AATB) Program, a multi-donor, Inter-regional program, announces the Federal Republic of Nigeria’s official membership in the AATB Program. This pivotal development marks a significant step towards advancing trade and to strengthen economic ties among Arab and African countries.
By welcoming Africa’s largest economy into the collaborative framework, the AATB Program demonstrates the attractiveness of its commitment to unlocking the untapped opportunities, increasing market access, diversifying trade partnerships, and heightening investment prospects for its member countries.
Commenting on the announcement, Eng. Hani Salem Sonbol, CEO of ITFC and AATB Secretary General, said: “The admission of the Federal Republic of Nigeria into the AATB Program is a major milestone and we are confident this new partnership with one of Africa’s economic powerhouses will strengthen investment flows, and trade relations between the Arab and African regions. Given the economic potential of Nigeria, we will support the country in its quest to diversify and grow its economy and access new markets across Africa and the Arab regions.”
African states urged to step up investments in tourism (The East African)
A global meeting on tourism has kicked off in Kigali, Rwanda on Thursday with calls to African governments to step up investment in the sector to tap its potential to foster the region’s socio-economic development. This is because, despite the steady growth of tourism in Africa, tourism has not fully realised its full potential, a situation which is mainly attributed to several bottlenecks in the tourism sector such as the narrow tourism product offer which is mostly focused on wildlife-based tourism at the expense of other tourism segments.
Tanzanian President Samia Suluhu Hassan shared her insights on the vital role of tourism in Africa’s economies. She revealed that in Tanzania, the tourism sector contributes a substantial 17.2 percent to the country’s GDP and accounts for 25 per cent of total export earnings. This contribution she said, not only highlights the sector’s significance but also underscores its potential for economic growth and job creation.
China states position on COP28 (China Dialogue)
China has stated its “basic position” on the upcoming UN climate conference, COP28, in its annual climate change report. The report says China looks forward to collaboration from all parties to ensure that COP28 “continues and deepens ‘joint implementation’ and uses the global stocktake as an opportunity to send a positive signal of focused action and strengthened cooperation”. The government releases this climate action report every year, taking stock of progress in areas including mitigation, adaptation, and international cooperation, and stating its basic COP position.
The report states that non-fossil energy sources accounted for 17.5% of China’s energy consumption in 2022, and that its renewable electricity installed capacity stands at 1.2 terawatts, or 34.4% of the world total. When interpreting the report to the media, Xia Yingxian, newly appointed director of the environment ministry’s Department of Climate Change, concentrated on South–South climate cooperation and the COP28 position, reports Xinhua News.
Xia said that China is providing “pragmatic support” to African countries, small island countries, least developed countries and other developing countries. As of September 2023, it has signed 48 South-South cooperation agreements on climate change, built four low-carbon demonstration zones, carried out 75 climate mitigation and adaptation projects, and provided training courses for more than 100 developing countries, he added.
How CBAM threatens Africa’s sustainable development (Energy Monitor)
In pursuit of sustainable development, African nations are on a mission to boost trade. The African Continental Free Trade Area (AfCFTA) – launched in 2020 – is set to create the largest free trade area in the world, potentially boosting Africa’s income by $450bn by 2035 and lifting 30 million Africans out of extreme poverty. The Nairobi Declaration – signed by all African nations at the close of the first-ever Africa Climate Summit in September 2023 – includes calls for “designing global and regional trade mechanisms in a manner that enables products from Africa to compete on fair and equitable terms”. It demands that “trade-related environmental tariffs and non-tariff barriers must be subject to multilateral discussions and agreements and not be unilateral”.
For now, Africa remains a small player in global trade, with the value of the entire continent’s exports currently lower than that of the UK. Much of the current multilateral trade discussions are about keeping the value chain of the continent’s resources on the continent: Africa is home to some 30% of the world’s mineral deposits, but 70% of mined materials are currently exported to Europe or Asia to be further refined.
At the same time, much of the industrialised world is embracing the most protectionist trade policy seen for decades.
Although the levy will apply from October, the first bill for companies will not come until 31 January 2024. The mechanism is being phased in, with it taking full effect by 2032. The European Commission has also indicated it will be lenient in the beginning, with the objective being “to serve as a pilot and learning period for all stakeholders” including importers, producers and authorities, “and to collect useful information on embedded emissions to refine the methodology”.
The ECA Offices for North and West Africa convened an expert group meeting on Wednesday, November 1st, in Accra (Ghana) under the theme “Transition to Renewable Resources for Energy and Food Security in North and West Africa.” The meeting took place within the context of the second joint Intergovernmental Committee of Senior Officials and Experts (ICSOE) for North and West Africa. Participants examined the impact of climate change in both sub-regions, discussed practical measures for countries to adapt and safeguard their energy and food security, while advancing their development and made some important recommendations.
“Food insecurity is unfortunately a structural challenge in Africa, affecting 20% of the continent’s population compared to the global rate of 9.8%. In this context, three imperatives are evident: increasing agricultural and cereal productivity, mobilizing more domestic resources, and expediting the implementation of the AfCFTA, which serves as our cornerstone for poverty reduction and the acceleration of structural transformation,” said Ngone Diop, Director of the ECA office for West Africa.
Make-or-break meeting to decide on critical Loss and Damage Fund issues kicks off this week (WWF)
Negotiators will meet 3 to 4 November in Abu Dhabi in a last-ditch effort to resolve issues preventing the Loss and Damage Fund being operationalized through a decision at COP28. Progress here will be a litmus test for success for the COP, writes Sandeep Chamling Rai, WWF Senior Advisor for Climate Adaptation Policy.
The setting up of a Loss and Damage Fund at the UN climate talks in Sharm El-Sheikh last year was the standout success of an otherwise underwhelming CO27. But with just weeks until COP28 in Dubai, the prospect of the fund being operationalized this year is slipping away – preparatory discussions in October collapsed over disagreements on technical issues.
The Fund was established to provide financial assistance to nations most negatively impacted by the climate crisis. Rapidly escalating climate-related disasters underscore the need for such a fund. One of the main issues holding up progress is the divided opinion on who will host the Loss and Damage Fund. Developed countries are pushing for the World Bank to be the host, whereas developing countries are calling for a stand-alone host, which will be under the authority and guidance of the COP.
DG Okonjo-Iweala: “Our work is cut out for us” on achieving concrete MC13 outcomes (WTO)
Speaking at a formal meeting of the WTO’s General Council on 1 November, Director-General Ngozi Okonjo-Iweala said WTO members need to step up efforts to find common ground in order to achieve concrete outcomes at the 13th Ministerial Conference (MC13) in Abu Dhabi next February.
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 Osaka meeting followed a Senior Officials Meeting (SOM) at WTO headquarters on 23-24 October that focused on preparations for MC13.
AGOA Forum updates
Relief as President Biden endorses Agoa extension for Africa (Business Daily)
United States President Joe Biden has endorsed the extension of the African Growth and Opportunity Act (AGOA) upon its expiry in September 2025. This is after the White House urged Congress to address the matter in a timely fashion ahead of the annual AGOA meeting this year in South Africa.
“I strongly support reauthorisation of the African Growth and Opportunity Act— a landmark, bipartisan law that has formed a bedrock for U.S. trade with sub-Saharan Africa for more than two decades... I encourage Congress to reauthorize AGOA in a timely fashion and to modernize this important Act for the economic opportunities of the coming decade,” said US President Joe Biden in a statement.
“I am committed to expeditiously working with Congress and our African partners to renew this law beyond 2025, to deepen trade relations between our countries, advance regional integration, and realize Africa’s immense economic potential for our mutual benefit. In so many ways, Africa is the future – and so when Africa succeeds, the whole world succeeds.”
Some US senators had called on the Senate to prioritize extension of the legislation to expand economic opportunities with Africa. The reauthorisation of AGOA past 2025 will help eligible African countries to boost trade, economic growth and development, including increasing investments and US foreign exchange earnings through access to US markets.
Africa-US trade programme needs at least 10-year extension, AU says (Reuters)
Africa wants the U.S. Congress to renew its flagship trade programme for the continent for at least 10 years, the African Union’s top trade official said on Thursday, adding that any modifications to the initiative should only be considered later. U.S. lawmakers and the Biden administration have voiced support for renewing AGOA, which saw over $10 billion worth of African exports enter the United States duty free last year.
African manufacturing capabilities on show at the AGOA Forum (KZN Industrial & Business News)
South Africa’s Minister of Trade, Industry, and Competition, Ebrahim Patel, will host a senior delegation from the United States, led by Ambassador Katherine Tai, along with high-level delegations from various countries in sub-Saharan Africa. For African businesses, the “Made in Africa” exhibition offers a unique opportunity to discover new business partners, research novel products and services, and network with thousands of delegates from the United States and AGOA countries.
AGOAing concern: The US makes good on its Africa ambitions with a flurry of activity (News24)
Johannesburg hosts Agoa amid changes to US-Africa Trade programme (SABC News)
Agoa Forum: Has the US trade pact helped Africa? (BBC News)
Visit AGOA.info for more
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Trade Statistics for September 2023 (SARS)
South Africa recorded a preliminary trade balance surplus of R13.1 billion in September 2023. This surplus is attributable to exports of R174.65 billion and imports of R161.51 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN).
The year-to-date (01 January to 30 September 2023) preliminary trade balance surplus of R43.0 billion is a deterioration from the R179.9 billion trade balance surplus for the comparable period in 2022. On a year-on-year basis, export flows for September 2023 were 6.0% lower compared to R185.7 billion recorded in September 2022, whilst import flows were 2.8% lower having decreased from R166.2 billion in September 2022 to R161.5 billion in the current period.
pdf South Africa Trade Statistics for September 2023 (SARS) (589 KB)
Revenue collection projected to decline (SAnews)
Revenue collection is expected to fall by some R56 billion below the 2023 Budget predictions, according to the National Treasury Medium Term Budget Policy Statement (MTBPS). The MTBPS notes that slowing commodity exports, slower growth, downward revisions of the tax base growth, slowing corporate tax collections and lower net VAT collections have all impacted tax revenue. The 2023 Budget had projected collections would reach some R1.78 trillion but that has now been revised down to R1.73 trillion.
“In recent years, revenue collection has benefited from a pattern of high prices for South Africa’s commodity exports. In the current year, commodity prices have fallen faster than expected and value‐added tax (VAT) refund claims have risen, resulting in revenue collections projected to be R56.8 billion below 2023 Budget estimates. “The moderate revenue outlook is limited by the domestic economic outlook and negative shifts in the global economy,” the department said. This as Minister of Finance Enoch Godongwana tabled the Medium Term Budget Policy Statement in Parliament on Wednesday.
pdf 2023 Medium Term Budget Policy Statement - 1 November 2023 (1.13 MB)
Kenya bans avocado exports (The East African)
The Kenyan government has stopped the export of avocados from Friday to allow the fruits to mature as part of measures to protect Kenya’s lucrative export market. In a notice on Tuesday, the Horticultural Crops Directorate (HCD) suspended the export of Hass, Pinkerton, Fuerte, and Jumbo avocado varieties by sea starting November 3, 2023.The directorate has, however, cleared air shipment of avocados, including those in transit from other East African Community (EAC) countries. The directorate says the decision follows a survey it undertook to authenticate the maturity indices of the avocado fruits in the major production zones.
“Following the findings of the survey, we hereby notify the Kenyan avocado stakeholders that the closing of Hass, Pinkerton, Fuerte, and Jumbo harvesting season and export by sea for the 2023/2024 fiscal year shall be in force with effect from November 3, 2023,” said HCD acting Director-General Willis Audi. “Export clearance (including fruit consignments from the EAC region) shall be granted for air shipment, subject to inspection by the Directorate. Traceability information will be required for all consignments,” he added.
Annual Revenue Growth for 2007-2021 Stood At 11% (The Voice)
The Chairperson of the GRA Board of Directors, Mrs. Lucy Faye, has informed the Finance and Public Accounts Committee(FPAC) of the National Assembly that the average annual revenue growth for 2007-2021 stood at 11%. “This feat in revenue mobilization has given Government greater leverage in driving its development agenda forward,” board chair Faye recognized.
n a statement she delivered to the FPAC on GRA’s 2021 activity report on Tuesday, Mrs. Faye pointed out that one of the core mandates of GRA as a revenue collection agency is to promptly assess, collect and account for all revenues due to government in a fair and transparent manner according to the revenue laws. “However, this is a complex matter under our cultural setting in that many see non-compliance towards their tax obligation as normal. In such an environment then, the enforcement of the revenue laws becomes a daily occurrence which in itself is both challenging and resource intensive,” she pointed out.
Madam Faye explained that the GRA continues to account for most of the Government’s recurrent budget on an annual basis, having been operating as a single revenue administration since 2007. “The average annual revenue growth for the period 2007- 2021 stood at 11%,” she told FPAC.
Kenya moves to stem loss of cargo business to Tanzania (The East African)
Kenya has kicked off policies to salvage shrinking cargo business at its ports due to competition from the port of Dar es Salaam. Cargo owned by governments in the region will be handled by the Government Clearing Agency (GCA) while other policies include cutting port charges and doubling the storage period for transit cargo.
Kenya is scrapping destination charges, affording importers from the landlocked East African Community partners using the Port of Mombasa a saving of up to $1,200 per 40-feet container. Salim Mvurya, the Cabinet Secretary for Mining, Blue Economy and Maritime, issued a circular directing government agency to clear cargo through the Kenya National Shipping Line (KNSL).
According to the minister, the move is meant to revitalise the institutions, which have capacity to contribute to Kenya’s economy, and to ensure safety and confidentiality in clearing of sensitive government cargo. This will see private clearing agencies lose lucrative deals and over 20 million metric tonnes of cargo. Data from the Kenya National Bureau of Statistics indicates that about 52 percent of cargo cleared at different border points belongs to government ministries, departments and agencies.
Outcry in Kenya over tax ‘harassment’ of travellers (CGTN Africa)
Ethiopia Serves as Gateway to Africa to Trade Across Continent (ENA)
Ethiopia serves as a gateway to Africa, making it easier for businesses to trade across the continent, Ethiopian Ambassador to Pakistan Jemal Beker said. The Ambassador made the remark while visiting the Islamabad Chamber of Commerce and Industry (ICCI), the daily Pakistani Newspaper, The Nation reported today. During the occasion, the ambassador highlighted the untapped business, trade and investment opportunities in Ethiopia and Africa as well.
Addressing the gathering of businessmen, Ambassador Jemal underscored the importance for Pakistan to establish a stronger presence in Africa, a continent with a population of over 1.4 billion people and immense potential. He stressed that Africa is the future of global commerce and encouraged Pakistani businessmen to align itself with these lucrative opportunities. Ethiopia, he pointed out, serves as a gateway to Africa, making it easier for businesses to trade across the continent.
FG commits to scaling up Nigeria’s global port rating (Vanguard)
The federal government, FG, through the Ministry of Marine and Blue Economy has expressed its commitment to scaling up Nigeria’s port rating in the global maritime space.
Disclosing this intention at the commissioning of the Mission to Seafarers (MTS) centre in Lagos, earlier in the week, Minister of Marine and Blue Economy, Adegboyega Oyetola, said the move is apt especially with increasing global competition which has become imperative for nations to make conscious efforts to deepen the competitiveness of their ports. He added that improving Nigeria’s balance of trade which is crucial to strengthening the value of the Naira and creating employment, is top on President Bola Tinubu’s policy agenda, stressing that given the pivotal role that the maritime sector plays in actualising the noble objective, the ministry under his leadership is determined to equip seafarers and all maritime workers with the enabling tools to tackle and overcome work-related challenges.
He added: “This is part of our concerted effort to ensure the maximisation of the comparative advantages that our maritime resources present. The reconstruction of this MTS facility will undoubtedly scale up Nigeria’s rating in the global maritime community.
Addis Abeba Trade Bureau cracks down on Sunday market traders selling overpriced products (Addis Standard)
The Addis Abeba Trade Bureau began to take action against Sunday market traders who have been selling goods at prices higher than the ceiling. So far, administrative measures have been implemented against traders in three sub-cities. Mesfen Asefa, the head of business marketing at the bureau, said that illegal business activities, such as selling onions above the official prices, have been observed in Sunday markets. Mesfen stated that appropriate administrative actions will continue in the future to address this issue.
The prices of essential food items have reached unprecedented levels in recent months. Particularly, the price of onions in Addis Abeba has experienced a significant and alarming rise, surpassing 100 birr per kilogram. City officials attribute this price surge to a supply-and-demand mismatch for the product. In September 2023, the year-on-year general inflation rate reached 28.3%, with food inflation recorded at 27.1%. The Ethiopian Statistical Service has identified the rise in average prices of key food items such as bread and cereals (40.7%), vegetables (31.8%), and meat (28.5%) as the primary factors driving food inflation.
The Comorian authorities and IMF staff have reached a staff-level agreement on economic policies and reforms for completion of the first review under the 4-year ECF-supported program. The review once formally completed by the IMF Executive Board would release about US$4.7 million in financing.
Expected growth in 2023 reflects an ongoing rebound in economic activity. Program performance has been generally satisfactory amidst continued challenges from the external environment. The authorities remain committed to achieving their fiscal consolidation targets, and there has been good progress on the structural reform agenda.
Article IV consultation discussions focused on reforms to boost fiscal transparency, protect tax revenue in the context of the WTO accession and declining trade taxes, reduce the fiscal drag from state-owned enterprises, and progress towards SDGs.
The Kingdom of Lesotho signs the COMESA-EAC-SADC Tripartite Free Trade Area Agreement (SADC)
The signing ceremony was held on 27 October 2023, in Maseru, Lesotho and was witnessed by the Kingdom of Lesotho governmental authorities, parliamentarians, private sector, and representatives of the Tripartite Task Force (TTF) from the three Secretariates, Common Market for Eastern and Southern Africa (COMESA)-East African Community (EAC)-Southern African Development Community (SADC),
The COMESA-EAC-SADC Tripartite Free Trade Area Agreement was finalised and opened for signature in 2015 at the third Tripartite Summit, held in Sharm-el-Sheik, Egypt. The TFTA Agreement has three main pillars: market integration, industrialisation, and infrastructure development, and is complemented by cross cutting issues of resource mobilisation and free movement of persons, and sets out the following objectives:
Representing the Executive Secretary of SADC, His Excellency Mr Elias Magosi, the Deputy Executive Secretary for Regional Integration at the SADC Secretariat, Ms. Angele Makombo N’Tumba, commended and congratulated the Kingdom of Lesotho for signing the TFTA Agreement. With the signature by the Kingdom of Lesotho, the TFTA Agreement has twenty-three signatures (23), and eleven (11) ratifications. Fourteen (14) ratifications by Member/Partner States are required to bring the Agreement into force.
The future of trade in Africa (Business Daily)
The 8th Pan African Forum on Migration (PAFOM8) kicks off (AU)
We cannot achieve food security without improving intra-Africa trade – AGRA (MyJoyOnline)
The Director of Inclusive Trade, Markets and Finance at AGRA says Africa cannot achieve food security without improving intra-continent trade. Daniel Njiwa said the continent cannot ensure food system resilience if “our trade is not functioning very well.” “Trade will remain the lubricant for conversations around food systems. It encourages producing in a diversified fashion where you can easily meet food security and nutritional targets,” he said.
He was speaking at the 2023 Africa Day for Food and Nutrition Security Commemoration and the Comprehensive Africa Agriculture Development Programme (CAADP) Partnership Platform meeting in Lusaka, Zambia, organised by the African Union and the African Union Development Agency.
“The trade environment on the continent is facing a lot of challenges which can be dealt with. Policy and predictability, countries deciding without numbers and evidence, how to deal with import and export policies, and infrastructure to get goods from one point to the other is a problem,” Mr Njiwa observed.
The meeting from October 30 to November 2, is under the theme; “Accelerating the implementation of the Africa Continental Free Trade Area Agreement in the context of CCAADP commitments for safer and healthier diets.”
“Women and youth are the most important players in agriculture. They are involved in moving over 80% of food traded in Sub-Saharan Africa,” he said. “Many are involved in informal cross-border trade. We need to find a way to get to work with women and youth and provide them with the necessary tools to participate more efficiently and more effectively in trade,” he added.
How a digital platform for ports speeds delivery of goods to your local shopping mall (World Bank Blog)
Ports are more than just docking points for ships; they are complex, busy hubs critical for the quick movement of international cargoes. Managing a port is a complex operation that involves various private parties and government agencies. And here’s where technology steps in to make everything smooth sailing.
Modern digital platforms allow port stakeholders to share data and information with each other. This capability improves port logistics performance and facilitates trade. The latest edition of port digital platforms is known as a Port Community System (PCS). How does a PCS differ from the other digital solutions used by ports?
When we zoom out to the broader scope of international trade, a PCS is the linchpin that can make global supply chains more resilient against shocks. The more information international logistics and supply chain companies share, the better they can adjust to unforeseen obstacles. And for low- and middle-income countries, a PCS serves as an advanced trade facilitation mechanism that enhances the logistics connectivity of international trade flows. And a Port Community System is a potentially big step on the road toward greater prosperity through trade: As efficiency improves, so does a port’s capacity , allowing more traffic to pass through each day.
Driving Digitalisation For Future Railway Innovation (Africa.com)
Huawei and the Southern African Railways Association (SARA) have signed a Memorandum of Understanding (MOU) with the purpose of creating a non-exclusive framework of cooperation for the transformation of the SADC region’s railway transport and corridor logistics to enable seamless, efficient, smooth, cost-effective and quality railway corridor services on all SARA Corridors.
The MOU is designed to help address an urgent need in the railway space to make railways smarter, safer, more visualised, more efficient, and more reliable. As Guo Guoqing, President of Huawei Sub-Saharan Africa Enterprise Business explained, “Success in the railway industry depends on safety, reliability, and affordability, with both operators and its customers expecting flawless service – but this requires future-proofed communications networks based on single technology among all the rail operators.”
New USTR Agenda Disrupts Digital Free Trade (Americans for Tax Reform)
AGOA updates
African countries to seek extension of duty-free access to US markets (ABC News)
The extension of the U.S. program allowing sub-Saharan African countries duty-free access to U.S. markets is expected to be high on the agenda of the U.S. Africa Growth and Opportunity Act (AGOA) trade forum that will begin in South Africa on Thursday.
The forum kicks off days after U.S. President Joe Biden announced his intention to boot Niger, Uganda, Central African Republic and Gabon off the list of beneficiaries as they have failed to comply with the eligibility criteria.
“We absolutely expect African countries benefitting from AGOA to push for its extension, because they have seen real benefits, even though some have benefitted more than others,” said professor John Stremlau, an international relations expert. He said that AGOA was particularly important as it was supported by both Republicans and Democrats to encourage economic development in Africa.
Biden said in a letter addressed to members of U.S. Congress that despite intensive engagements with Niger, Uganda, Central African Republic and Gabon, they hadn’t addressed U.S. concerns “about their noncompliance with the AGOA eligibility criteria.”
US renews commitment to supporting AGOA in Malawi (Malawi Nyasa Times)
United States (US) Ambassador to Malawi, David Young, has reaffirmed his government’s commitment to continue supporting AGOA in Malawi, stressing that the implementation of the Growth Poles and the African Trade and Investment is a testament to that commitment.
The US is implementing the projects through its United States Aid for International Development (USAID) to equip businesses with skills that will help them explore market opportunities in the United States. Young has therefore described the upcoming AGOA Forum scheduled to take place in South Africa this week as “a valuable moment in Malawi’s economic engagement with the United States”.
“AGOA is an example of how we can use trade as a force for good. To maintain eligibility, countries must uphold several values that are core to free and fair societies—rule of law, respect for human rights, combatting corruption, and protecting workers’ rights. And I look forward to a robust, forward-looking conversation — at the AGOA Forum and beyond,” wrote Young in his Op-Ed shared with Nyasa Times on Tuesday.
According to the envoy, Malawi ranks 15 out of 35 countries in Africa that have most utilized the AGOA trade window over the past 23 years.
Agoa trade deal talks: South Africa will need to carefully manage relations with the US and China (The Conversation)
AGOA deal a key part of South Africa’s citrus future (Fruitnet)
Visit AGOA.info for more on the 2023 AGOA Forum
Decades-old South-South trade deal offers new hope for sustainable future (UNCTAD)
The Global System of Trade Preferences (GSTP) among Developing Countries, established in 1989, is not only a historic agreement but also an effective instrument for addressing today’s challenges. Created by the G77 bloc of developing countries, the GSTP aims to promote trade among nations in the Global South, primarily through preferential tariff reductions. Its 42 members across Africa, Asia and Latin America represent a combined market of $16 trillion, generating some $4.4 trillion in import demand for goods – almost 20% of global merchandise imports.
While the latest GSTP tariff reductions still require one more ratification before entering into force, its members can at the same time step up ambitions and key areas of South-South cooperation to advance sustainable trade and development.
“Under the current context of ‘polycrisis’, the GSTP can provide a valuable platform for advancing trade cooperation to achieve sustainable energy transition, decarbonization and greater food security,” UNCTAD Secretary-General Rebeca Grynspan said.
Country largest trade partner of 25 BRI economies (Hellenic Shipping News)
China has become the largest trade partner of 25 economies involved in the Belt and Road Initiative, a report said.
The import and export value between China and other BRI markets grew from 6.46 trillion yuan ($883 billion) in 2013 to 13.76 trillion yuan in 2022, according to the report released during the second conference of the Global Economic Development and Security Forum of the Boao Forum for Asia being held in Changsha, Hunan province, from Sunday to Tuesday. The total trade value among China and other BRI economies reached 6.89 trillion yuan in the first half of this year, up 9.8 percent from a year earlier, the report said
Moreover, as connectivity has been a priority for the initiative, a large number of strategic infrastructure cooperation projects — such as roads, railways, ports, aviation and power projects — have been built in BRI economies, it said.
Scholz’s Africa visit: Germany looks to boost economic ties (DW)
German Chancellor Olaf Scholz’s visit to Nigeria and Ghana in West Africa, his third trip to Africa in two years, had the aim of deepening economic ties between Germany and the two African nations. Nigeria is struggling, with the value of its economy reportedly declining to $477 billion (€451 billion) in 2022 from $546 billion in 2015.
During bilateral talks, Nigeria’s president Bola Tinubu wooed investors to the country’s mining sector, which has been underdeveloped for decades. He also said he had discussed with Scholz the potential of exporting gas to Europe. “The [possibility of the] energy [sector] to facilitate the shipment of liquified gas to Europe is well discussed in advance. We have an eye on this,” Tinubu said.
German companies aimed to boost their activities in Africa this year, especially in areas such as green hydrogen and liquefied natural gas.
Tanzania, Germany eye to boost trade, investments (Tanzania Daily News)
New Import Licensing Notification Portal now available (WTO)
An Import Licensing Notification Portal was launched on 31 October at a meeting of the Committee on Import Licensing Procedures. The platform allows members to draft and submit notifications online. Members also reviewed 42 notifications submitted since the last meeting of the Committee and discussed several specific trade concerns about import licensing regimes. The WTO Secretariat held an information session on the Agreement on Import Licensing Procedures for new delegates following the meeting of the Committee.
Working group on food security moves closer to finalizing report and recommendations (WTO)
The working group on food security reviewed on 31 October a revised report of the coordinator, with the aim of reaching consensus on a final report and set of recommendations by end-November to help address the concerns of least-developed countries (LDCs) and net food-importing developing countries (NFIDCs). The meeting was facilitated by Mr Kjetil Tysdal of Norway, the coordinator of the food security work programme, which is conducted under the Committee on Agriculture.
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Citrus association urges that R100bn Transnet bailout be granted (Engineering News)
The Citrus Growers’ Association of Southern Africa (CGA) has called on Finance Minister Enoch Godongwana to prioritise Transnet’s financial recovery in the Medium-Term Budget Policy Statement he presents on November 1. While other stakeholders such as North-West University Business School Professor Raymond Parsons and Nedbank have bemoaned the fact that the State continues to provide bailouts to State-owned entities, CGA says Transnet is the backbone of the country’s export economy and deserves immediate attention from government. The freight utility has requested a R100-billion bailout from National Treasury to fund its recovery plan.
The CGA cautions that, if this support is granted, it should be conditioned on the further expansion of public-private partnerships in rail and port projects. The association believes more private sector involvement, such as the selection of International Container Terminal Services for the upgrading of the Durban Container Terminal Pier 2, is key to a turnaround at Transnet.
Freight rail offers citrus growers, for one, significant advantages in getting produce to ports, however, owing to the decay of the rail network, 95% of all fruit in South Africa is currently transported by truck. The additional 100-million 15 kg cartons of citrus that will need to be moved from orchards to ports over the next nine years will be at risk without a functional rail network.
Lithium and rare earths essential for achieving green and clean energy objectives – Geingob (Namibia Economist)
A two-day EU-Namibia Business Forum jointly organised by the Namibia Investment Promotion and Development Board and the European Union in Brussels, Belgium, officially kicked off on Tuesday with an opening statement by the President, HE Dr Hage Geingob. The President emphasized that the EU collaboration aligns with Namibia’s National Development Plans, Vision 2030, Industrial Policy, Growth at Home Strategy, the SADC Protocol on Industry, and the Mineral Beneficiation Strategy for Namibia.
“In the pursuit of a greener and cleaner future, both Namibia and the EU share a deep and practical commitment to engender a just energy transition. Our government adopted Harambee Prosperity Plans I and II to accelerate the implementation and impact of the aforementioned plans and strategies. Securing access to these critical resources is not just an economic endeavour but a strategic security imperative for the world’s aspirations in delivering on green and clean energy objectives,” he said.
At the business forum, the President pointed out Namibia’s readiness to collaborate with the EU, which recognizes hydrogen as a critical component for decarbonizing sectors like heavy industry and transport to achieve carbon neutrality by 2050. “By 2030, according to the REPowerEU, the EU estimates that it will require 20 million tonnes of clean hydrogen and half of this has been earmarked for imports from trusted jurisdictions, such as Namibia,” he said.
Geingob underscores Namibia’s dedication to responsible diplomacy at 9th Session of the Heads of Mission Conference (Namibia Economist)
URA gets gadget to help curb tax evasion by rice importers (The Independent Uganda)
Uganda Revenue Authority-URA has secured a gadget that enables customs officials to ascertain the origin of imported rice, to curb tax evasion. This comes amidst reports of increased rice imports from other regions through Tanzania, hence illegally gaining from the East African Community Common External Tariffs (EAC-CET). This development comes at a time when truckloads of rice from Tanzania are being held at the Mutukula border over suspicion of traders importing mixed rice sourced from different countries including outside the EAC.
When declared as imports from Tanzania, the importers avoid the high taxes that are otherwise aimed at discouraging imports from other regions. According to EAC-CET, importation of rice outside the EAC is subject to import duty at a rate of 75 percent while rice from within the EAC is zero-rated.
COMESA’s global trade rises by 15% (COMESA)
COMESA’s trade globally and within the region has recorded a significant increase with the total exports to the world gaining by 15% from US$179bn in 2021 to US$205bn in 2022. The largest exporting countries in the COMESA region were Libya, Egypt, Tunisia and Sudan. These had a combined market of 98% in exported fuels in 2022. This was revealed during the 39th Meeting of the COMESA Trade and Customs Meeting held from 23 – 27 October in Balaclava, Mauritius.
A report presented by COMESA Secretariat on trade developments in the region indicated that the value of intra-COMESA total exports increased by 10% from US$12.8bn in 2021 to US$14.1bn in 2022. Exports in sulphur of all kinds, cobalt oxides and hydroxides, palm oil, refined petroleum oil, urea, electric current, cotton, sulphuric acid, main flour, gold and ammonia among others contributed to the increase. Most of the COMESA Member States recorded growth in their 2022 intra-COMESA total export values except for Congo DR, Ethiopia, Malawi and Seychelles whose exports to the region declined.
Cost, efficiency to determine future of EAC ports business (People Daily)
Competition for port business has gone a notch higher in the East African coastal strip as cost and efficiency now threaten to snatch the pie from Kenya. This as Tanzania signed a multi-billion, long term modernisation project of the Port of Dar es Salaam with Dubai-based ports operator DP World to improve the port’s competitiveness. According to Dar es Salaam, the intention is to get a bigger share of the lucrative regional marine trade, currently controlled by the Port of Mombasa.
On October 22 2030, Dar es Salaam inked a $250 million (Sh37.6 billion) 30 year concession agreement with DP World, for the later to operate and modernise the multi-purpose Dar es Salaam port, the largest in the country to improve its efficiency, competitiveness and trade opportunities for Tanzania and the region. While the port of Mombasa has been on top gear, due to its fairly modern facilities, earning it the moniker of the ‘Gateway to East Africa”, this position is gradually attracting the likes of Dar es Salaam, Djibouti and Somalia’s Berbera ports, according to the latest ranking by the World Bank’s Container Port Performance Index (CPPI) released in June this year.
Partners of Lobito Corridor target construction completion in five years (Engineering News)
Following the signing of a seven-sided memorandum of understanding (MoU) between two financial institutions and the governments of the US, the European Union, Angola, the Democratic Republic of Congo (DRC) and Zambia for the development of the Lobito Corridor and the Zambia-Lobito rail line, a coordinator involved in the project has confirmed that a feasibility study will start before the end of the year.
Acting special coordinator for the Partnership on Global Infrastructure Investment (PGI) Helaina Matza told members of the media during a briefing on October 31 that the partners aim to conclude the feasibility study within six months and thereafter start with construction of the massive project.
The project partners are targeting completion of the works within five years. The funding partners on the project are the African Development Bank (AfDB) and the Africa Finance Corporation (AFC). This endeavour marks the most significant transport infrastructure that the US has helped to develop in Africa in a generation.
African Investment Promotion Agencies urged to raise continent’s value (Graphic)
The Chief Executive Officer of the Ghana Investment Promotion Center (GIPC), Yofi Grant, has called for a strong collaboration among African Investment Promotion Agencies (IPAs) to optimise opportunities that would help position the continent as the world’s most important investment community. He explained that Africa’s large youthful population presented a significant growth potential such that collaborative initiatives would harness its demographic advantage by developing targeted investment strategies that focus on sectors such as technology, agribusiness and renewable energy.
How ambitious AfCFTA implementation can drive agricultural trade growth for Africa (African Business)
The African Continental Free Trade Area (AfCFTA) agreement, which entered into force in May 2019, promised to unlock the full potential of Africa’s agricultural sector and accelerate sustainable economic growth and food security throughout the region. However, recent crises, from the conflict in Ukraine to the aftershocks of the Covid-19 pandemic and the accelerating impact of climate change, have given rise to significant setbacks for continental food security and prosperity.
A new report published by AKADEMIYA2063 and the International Food Policy Research Institute (IFPRI) analyses continental and regional trends in African agricultural trade flows and policies, with a special focus on the East African Community (EAC), the cotton value chain, and the impact of the Russia-Ukraine war on African countries.
In particular, the report finds that intra-African agricultural trade has increased significantly since the early 2000s. Nonetheless, intra-African trade represents a relatively small share of Africa’s total agricultural trade. Data indicates faster growth in imports from the rest of the world than from intra-African sources. Hence, while there has been an absolute increase, market share has remained flat, suggesting that the continent has yet to capture a growing slice of the rapidly growing demand. This should be the ultimate focus of and measure of success for the AfCFTA. The report also finds that Africa’s regional trade agreements (RTAs), which mostly focus on tariff reductions alone, have had a limited impact on stimulating the agrifood market.
The African Union Commission in partnership with the Ministry of Labour and Home Affairs, Botswana, will be hosting the 8th Pan African Forum on Migration Forum (PAFoM8) from the 31st October to 2nd November, 2023 at Royal Aria Conference Centre in Tlokweng. The theme for the conference is “Bolstering Free Movement and Trade Nexus in AfCFTA: Optimizing Benefits of Migration, Labour Migration for Development” and it will be focusing on migration and trade.
The conference, will, amongst others, contribute to the AU theme of the year 2023 theme “Acceleration of AfCFTA Implementation” by unpacking the linkages between the AfCFTA, Free Movement of Persons, and Migration across the continent. Emphasis will be placed on mobility of labour and skills of women and men migrant workers, as well as discuss the good examples and mechanisms through different stakeholders (countries of origin and countries of destination, civil society organizations and social partners) which can highlight benefits derived from an integrated economic development for Africa.
African Statistics Day 2023 (UNECA)
African Statistics Day is an annual event that is celebrated on 18 November to raise public awareness of the importance of statistics in all aspects of social and economic life. In 2023, it will be held under the theme “Modernizing data ecosystems to accelerate the implementation of the African Continental Free Trade Area (AfCFTA): the role of official statistics and Big Data in the economic transformation and sustainable development of Africa”. The theme aligns with the African Union theme of the year 2023, “Acceleration of the AfCFTA Implementation”, and encapsulates the call to modernize data systems on the continent to produce and use high-quality official statistics and seize the opportunities that big data presents.
The role of the national statistical systems in Africa and their commitment to the modernization of data systems are critical for informing policy interventions related to the African Continental Free Trade Area. Moreover, the statistical community has recognized that producers of official statistics need to transform and modernize to respond adequately to all the data demands arising from the 2030 Agenda for Sustainable Development, Agenda 2063: The Africa We Want, of the African Union, the 10-year strategy of the African Development Bank for the period 2023–2032, subregional and national development plans, and other agendas and frameworks.
US to remove Uganda and three other African countries from Agoa trade deal (BBC News)
US President Joe Biden has revealed plans to expel Uganda, Gabon, Niger and the Central African Republic (CAR) from a special US-Africa trade programme. The countries were either involved in “gross violations” of human rights or not making progress towards democratic rule, the president said.
The US introduced the African Growth and Opportunity Act (Agoa) in 2000. It gives eligible sub-Saharan African countries duty-free access to the US for more than 1,800 products.
President Biden said that Niger and Gabon - both of which are currently under military rule following coups this year - are ineligible for Agoa because they “have not established, or are not making continual progress toward establishing the protection of political pluralism and the rule of law”. He also said that the removal of the CAR and Uganda from the programme was due to “gross violations of internationally recognised human rights” by their governments.
“Despite intensive engagement between the United States and the Central African Republic, Gabon, Niger, and Uganda, these countries have failed to address United States concerns about their non-compliance with the Agoa eligibility criteria,” President Biden said on Monday, in a letter addressed to the speaker of the US House of Representatives.
The four countries are yet to react to the announcement, which comes just before South Africa is due to host the 20th Agoa forum from Thursday this week. Their expulsion from Agoa is set to take effect from the start of next year and is likely to impact their economies, as Agoa has been credited with promoting exports, economic growth and job creation among participating countries.
AGOA future critical after US officials table lifespan expansion bill (Engineering News)
The future of the Africa Growth and Opportunity Act (AGOA) will come into sharp focus this week after United States (US) officials tabled a bill for the expansion of its lifespan. AGOA, legislated by the US Congress, allows some African economies to benefit from duty-free access to the mega economy’s trade market. Trade ministers from South Africa and the US and several African countries are expected to meet in Johannesburg from Wednesday, as the continent’s most industrialised economy hosts the annual summit.
Director at the Trade Law Centre Trudi Hartzenberg said an extension could help boost investor confidence. “The longer we can have certainty about the arrangement, the better for attracting the kind of quality investment that we need, which will also help us to achieve the objectives of the Africa Continental Free Trade Agreement Area and our own development agenda.”
WTO issues new edition of Trade Profiles (WTO)
The WTO issued today (31 October) the 2023 edition of Trade Profiles, an annual publication providing key data on merchandise trade and trade in commercial services for 197 economies. Each two-page profile provides a breakdown of the economy’s major exports and imports and its main trading partners.
For merchandise trade, top exports and imports are broken down by agricultural and non-agricultural categories. For trade in services, data is provided for transport, travel and other commercial services. Statistics on intellectual property, such as patent and trademark applications, are also provided.
E-commerce co-convenors: “We must lock in the credible package that we have in our hands” (WTO)
The co-convenors of e-commerce talks — Australia, Japan and Singapore — outlined to participants at the latest round of negotiations on 25-27 October the next steps towards concluding the talks by year-end. The package on the table “is a result of five years of hard work and even though it does not meet all our expectations, it is a substantive package that delivers benefits to consumers, businesses and members,” they said. The initiative welcomed The Gambia as the 90th member of the talks.
“We must fix our sight firmly on the goal in the coming weeks,” Ambassador Hung Seng Tan of Singapore told participants. He said the co-convenors intend to circulate an updated consolidated text, which will show the progress achieved so far in finding “landing zones” this year. He noted that the issues that have not gained broad support from members will be removed from that text.
Ambassador Tan added: “I am encouraged to hear the strong expression of support and commitment from all of you for substantial conclusion [of the talks]”. He said that the co-convenors will schedule consultations with members to share the “contours of the substantial conclusion”. They will also circulate a road map and highlight key steps to achieve a timely conclusion of the negotiations.
Conflict in Middle East Could Bring ‘Dual Shock’ to Global Commodity Markets (World Bank)
Although the global economy is in a much better position than it was in the 1970s to cope with a major oil-price shock, an escalation of the latest conflict in the Middle East—which comes on top of disruptions caused by the Russian invasion of Ukraine—could push global commodity markets into uncharted waters, according to the World Bank’s latest Commodity Markets Outlook.
Under the Bank’s baseline forecast, oil prices are expected to average $90 a barrel in the current quarter before declining to an average of $81 a barrel next year as global economic growth slows. Overall commodity prices are projected to fall 4.1% next year. Prices of agricultural commodities are expected to decline next year as supplies rise. Prices of base metals are also projected to drop 5% in 2024. Commodity prices are expected to stabilize in 2025. The outlook for commodity prices would darken quickly if the conflict were to escalate.
“Higher oil prices, if sustained, inevitably mean higher food prices,” said Ayhan Kose, the World Bank’s Deputy Chief Economist and Director of the Prospects Group. “If a severe oil-price shock materializes, it would push up food price inflation that has already been elevated in many developing countries. At the end of 2022, more than 700 million people—nearly a tenth of the global population—were undernourished. An escalation of the latest conflict would intensify food insecurity, not only within the region but also across the world.”
Africa, Caribbean move to strengthen relations (Caribbean Life)
For decades, Africa and the Caribbean have been taking about cementing close relations, establishing air links and taking advantage of tourism opportunities among other topics. Not much has actually fructified in recent decades, but if the speed at which the two are moving this time to forge concrete links is anything to go by, then strong and fruitful relations lie ahead.
In late 2021 Africa and the Caribbean held their first leaders summit during the height of the COVID-19 pandemic, laying the groundwork for what is occurring today. By mid 2022, Africa’s Export-Import Bank (Afreximbank) had opened an office in Barbados and told the region that it had set aside $1.5 billion in concession loans for areas which governments and the private sector can identify.
And just this week, more than 250 African delegates flew by chartered Ethiopian Airlines jumbo jet to the Caribbean Community headquarters in Guyana for the two-day, second Afri-Caribbean Trade and Investment Forum, that began on Monday.
Attempting to give a proper context to Africa-CARICOM relations meanwhile, regional Secretary General Carla Barnett noted that total CARICOM-Africa trade for 2021 had reached $538 million with a trade balance in Africa’s favor of $110 million, noting that “total trade in 2021 declined from a high of US$1.177 billion in 2018 when trade was nearly balanced. There is much work to be done. CARICOM is a strong performer in services, especially in sectors such as travel, tourism, and financial services, and there are real opportunities for investment and trade in the services sector as well as in the agriculture and industrial sectors. And, of course, we have among us the country categorized as the fastest growing economy in the world, Guyana,” urging the region to cash in on trade with the continent.
Upcoming COP28 summit must ‘respond decisively’ to gaps in global climate action (UN News)
Ms. Mohammed, delivering opening remarks to a preparatory meeting, or Pre-Cop, being held in Abu Dahbi, underscored that the next UN climate summit was being convened at a critical moment in the fight against the climate crisis.The summit’s main outcome is under the so-called Global Stocktake, and it needs to respond decisively to the alarming findings of science and the existing gaps in mitigation, adaptation, and loss and damage, said the deputy UN chief.
The Global Stocktake is the handle given to the sequence of UN-facilitated meetings and events held over the past year to enable countries and other stakeholders to see where they have – or have not – been making progress toward meeting the goals of the 2015 Paris Agreement. The Pre-COP in Abu Dhabi aims to help countries lay the groundwork for negotiations at the next global climate summit, the 28th Conference of Parties to the UN Framework Convention on Climate Change (UNFCCC), known by its shorthand COP28.
For his part, UNFCCC Executive Secretary Simon Stiell acknowledged that the Pre-COP was taking place at a time of serious conflict and strife in several parts of the world. “It is a difficult and yet critical time for multilateral engagement; and a time of anxiety,” he said, and emphasized: “Let us be united by the knowledge that climate change is our common challenge, and that here, we will all benefit from the solutions, and we will all suffer from the failure to find them.”
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Realistic export opportunities for South African avocados (FreshPlaza)
Agricultural economist Samkelisiwe Ngwenya of the directorate: international trade promotion at the Department of Agriculture, Land Reform and Rural Development presented the annual value chain analysis into avocados, conducted in conjunction with the National Agricultural Marketing Council and using a modelling tool developed by the North West University to realistically assess export opportunities.
South Africa ranks among top 10 avocado exporters in the world (not among the top 10 avocado producers, however, since the industry is heavily export-oriented). In 2021 the Netherlands, the UK and Russia were the three biggest recipients of South African avocados taking 62.5%, 18% and 5% respectively. The only African countries among the top 10 were Namibia and Botswana while the United Arab Emirates in eighth position was the only other non-European country.
The limited market diversification in avocado exports has become a significant obstacle to the avocado industry, she remarked, since the country was overdependent on the EU and overlapped with Peru during its peak harvest. The findings indicated that South Africa’s largest realistic export potential is still found in the European Union and EFTA states (Iceland, Norway, Lichtenstein, Switzerland) as well as the UK, where South Africa enjoys preferential tariff rates of 0%.
SA Canegrowers again calls for rethink of sugar tax as MTBPS looms (Engineering News)
Industry body SA Canegrowers has once again called on Finance Minister Enoch Godongwana to not table an increase in the Health Promotion Levy (HPL), or sugar tax, in the upcoming Medium-Term Budget Policy Statement (MTBPS). This is in response to a tabling of the increase in the Draft Rates and Monetary Accounts and Amendment of Revenue Laws Bill that is due to take effect in April 2025.
In his Budget Speech in February, Godongwana announced a two-year postponement in the implementation of the increase. The stated reason for the delay was to allow for further consultation. Notwithstanding this commitment, no consultation has taken place to date on the destructive impact of the sugar tax on South Africa’s growers, millers and rural communities, SA Canegrowers explains. The association adds that the HPL has already resulted in the beverages sector reformulating its products away from sugar to avoid the levy, which led to substantial revenue losses for the sugar industry.
Building A Digital Bridge To Financial Inclusion In SA’s Informal Sector (Forbes Africa)
The South African informal sector is vibrant, pulsating with entrepreneurial energy. Valued at almost $10 billion and representing 17% of the country’s total jobs, the informal economy is an indispensable cog in the economic machine. And yet, it remains largely disconnected from formal financial systems and services.
“With the informal sector constituting such a significant percentage of the country’s economy, its exclusion from the formal financial ecosystem is detrimental on a number of levels. For one, by depriving more than 50% of South Africa’s urban population who live in townships and informal communities from financial access, the economy is losing the potential to harness the power of the sector to drive growth and financial stability,” says Mukuru CEO, Andy Jury.
Farmers finally get recognition for ‘genuine’ Karoo lamb (BusinessLIVE)
After an almost 17-year journey, the department of agriculture, land reform & rural development announced on Friday that the designation “Karoo lamb” has been registered as an SA geographical indication (GI). The name can be used only for lamb raised in a particular part of SA under specific conditions.
Kenya, Japan seek to transform motor vehicle industry (The Standard)
Kenya and Japan have launched an Industrial Policy Dialogue to indicate the direction of industrial collaboration that will contribute to strengthening economic relations between the two countries. The Cabinet Secretary for Trade, Investment and Industry Rebecca Miano who met the Minister for Economy, Trade and Industry for Japan Yasutoshi Nishimura during bilateral talks on October 29 said that this aims to support the mutually beneficial relation between the nations.
Miano who is in Japan for the G7 Trade Ministers meeting in the City of Osaka said that Kenya and Japan have agreed to initiate a Joint cooperation to improve market access through strengthening supply capacity for product development and export development.
The Cabinet Secretary observed that globally Africa features favourably as the next frontier for investments and Kenya stood strategically for Japan as a reliable partner, to manufacture for the African continent and the world in general.
ECOWAS towards economic resilience (ECOWAS)
The ECOWAS Commission, in partnership with the Nigeria Association of Small and Medium Enterprises (NASME), successfully organized the ECOWAS SME Partnership Conference and Exhibition. This extraordinary gathering, meticulously organized within the context of the implementation of the ECOWAS MSME Charter 2021-2030 and Private Sector Development Strategy, served as a pivotal platform for SME and SMI development and promotion stakeholders to collaborate and identify pragmatic modalities to support the growth and proliferation of MSMEs in the region.
Her Excellency, Mrs Massandje Toure-Litse, the Commissioner for Economic Affairs and Agriculture at the ECOWAS Commission, reported progress made by the Commission in the development of regional policies and regulations, as well as the facilitation of a conducive environment for the growth and prosperity of small and medium-sized enterprises (SMEs) within the sub-region. She highlighted that these accomplishments encompass a wide range of areas, such as enterprise education, regional collaborations, regulatory enhancements, promotion of specialized development corridors, and crucial financial assistance for small and medium-sized enterprises the region.
Mrs Toure-Litse kindly urged all participants to familiarize themselves with the ECOWAS SME Charter 2021-2030, emphasizing its extensive provisions that are specifically designed to foster the growth and advancement of small and medium-sized enterprises (SMEs). This historic ECOWAS SME Conference and Exhibition is an important step towards the economic success and empowerment of West African businesses, especially the small and medium-sized enterprises.
Unequal access to credit hurting Africa (The East African)
Africa will find it harder to recover from global shocks as long as she continues accessing credit at tougher terms than the rest of the world. Dr Akinwumi Adesina, the President of the African Development Bank (AfDB), says the wide disparity in accessing financial opportunities mean Africa will take time to recover or deal with the continual problems such as climate change that require investments in green technology.
“We need to create a world that is equitable and stable, where we bear in mind the needs of others and not only what we need matters,” he said.”We are all in the same boat. The global development boat is leaking, and the consequences will be devastating if the leakage is not blocked.”
‘Unimpeded trade’: China begins to deliver on US$10 billion promise to African businesses (South China Morning Post)
Chinese President Xi Jinping has unveiled an pdf 8-point vision for nation’s Belt and Road Initiative (1.76 MB) . At the signing ceremony in Beijing last week, Professor Benedict Oramah, president and chairman of Afreximbank, said the agreement showed the strengthening relationship between China and Africa. “The deal is strong evidence of the rapid growth in cooperation between China and Africa,” he said.
Oramah went on to say the Belt and Road Initiative is a blueprint of cooperation aimed at enhancing policy, trade infrastructure, finances and people-to-people connectivity. “As a bank we are committed to play a big role, especially in leveraging financial resources into Africa. This facility will help to catalyse trade financing between Africa and the People’s Republic of China, thereby enhancing flow of goods, capital and technology,” he said. “Working with partners like China Eximbank, we aim to attain the goals of this strategy, especially supporting China-Africa cooperation and expanding Africa’s export manufacturing capacity.”
The two institutions have been collaborating since 2018, with the AFC receiving US$400 million in bilateral loans from China Eximbank to date. “The loan will provide critical financing to support trade finance and investment in Africa, further facilitating the flow of goods and services between Africa and China,” the AFC said.
South Africa to pull off a ‘balancing act’ as they host 20th Agoa Forum (702)
Africa Melane interviews Trudi Hartzenberg, Executive Director of the Trade Law Centre (tralac)
From 2 to 4 November 2023, the United States and 35 sub-Saharan African countries will meet in Johannesburg for the 20th Africa Trade and Economic Cooperation Forum (Agoa Forum)
Hartzenberg says that us hosting provides the opportunity to bring strong messaging about links between Agoa potentially diversifying the benefits to a larger number of countries. Through the African Growth and Opportunity Act (Agoa), the aim is to strengthen investment and trade ties between the US and sub-Saharan Africa. However, previously this year, the US ambassador claimed that South Africa had been supplying Russia with arms amid its invasion, with lawmakers calling for the country to be cut out of Agoa because of its perceived closeness to Russia. The main concern with the upcoming summit is the “balancing act” that South Africa needs to pull off, to avoid being caught in tensions between China and the US, while still advancing its economic interests.
South Africa could benefit from its dual AfCFTA and Brics membership (Engineering News)
South Africa has the potential to use its membership of both the African Continental Free Trade Area (AfCFTA) and the Brazil, Russia, India, China, South Africa (Brics) bloc to stimulate its economic development. So points out advisory and analytics firm Frost & Sullivan Africa consultant Yaa Ngonyama.
“Through the cooperation of these agreements and memberships, South Africa has the opportunity to transition away from its historic role as a commodity exporter towards higher productivity value addition,” she affirms. “Together, South Africa’s membership in Brics and AfCFTA presents several benefits that include improved investment, trade, tourism, skills acquisition, and technological capabilities, increased trade flow, influence in pan-African affairs, increased bargaining power, infrastructure development, and greater economic integration.”
She notes that South Africa lies on one of the world’s most important oceanic trade routes. Some 30 000 ships sail past the country’s coast every year, of which about 13 000 actually call into one of South Africa’s seven ports. Spread around the coast, these harbours give convenient access to both the east, west and north. And the country had a “robust” logistics and ports infrastructure, and was recognised as a gateway to Africa. Further, it was the biggest hub of foreign direct investment (FDI) in Africa.
Ruto calls on African leaders to step up continental trade deal (The Standard)
President William Ruto has called on African leaders to accelerate the realisation of the Continental Free Trade Agreement (AfCFTA). The President said AfCFTA will increase intra-Africa trade thereby creating jobs and wealth for the people. President Ruto noted that Visa restrictions between African countries and tariffs are unnecessary hindrances to trade.
“It is time we realise the importance of trading amongst ourselves and allowing goods, services, people and ideas to move freely across the continent,” he said. He noted that trade among the East African Community countries had increased thanks to the removal of visa requirements and tariffs. He made the remarks during the Summit of the Three Basins on Biodiversity Ecosystems, and Tropical Forests, in Brazzaville, the Republic of Congo.
Govt negotiating 100% trade in AfCFTA (NewsDay)
Government says negotiations are ongoing to include sensitive products such as clothing, textiles and sugar in the African Continental Free Trade Area (AfCFTA) as it pushes for 100% trade on all products. Speaking at the Confederation of Zimbabwe Industries congress, Industry and Commerce minister Sithembiso Nyoni last week said AfCFTA was critical in assisting Zimbabwe to structurally transform its economy. Government signed the agreement establishing AfCFTA in 2018 and subsequently ratified it in 2019.
“Currently, trading under the AfCFTA is possible for 88,3% of tradable goods, representing nearly 5 000 products, as these have agreed rules of origin in place,” Nyoni said. “Negotiations are ongoing for more sensitive products such as clothing and textiles, automotive and sugar, which are expected to be finalised by this year in order to achieve 100% rules of origin coverage.
Nyoni said the AfCFTA Private Sector Engagement Strategy focused on four initial priority sectors or value chains, namely agro-processing, automotive, pharmaceuticals and transportation and logistics, based on the potential for import substitution and existing production capabilities on the continent.
Cross-border trade costs ease on EAC, AfCFTA initiatives (Business Daily)
The cost of accessing regional and continental markets for Kenyan businesses is gradually easing, findings of a survey suggest, citing falling tariffs and customs procedures. Traders who participated in a survey conducted by top-tier lender, Stanbic Bank, said that the burden of high taxes, infrastructure challenges, political instability, and conflict when buying and selling goods with other African countries was on the decline.
About 31 percent of Kenyan firms reported cross border trade landscape to be either “very or extremely easy” in May, according to the Africa Trade Barometer index, nearly doubled from 17 percent in September last year. “This result may be driven by the fact that the majority of the businesses exports are sold to fellow EAC member states, where the existence of the EAC Common Market Protocol and EAC Customs Union has eliminated or significantly reduced tariffs and trade barriers,” research analysts at Stanbic Bank wrote in the report released to media last week.
“The EAC has also harmonised customs procedures among member states and thereby significantly simplified trade processes between member states, which may explain why the majority of businesses are not significantly impacted by customs regulations.”
Ghana Shippers Authority pledges support for cross-border women (GhanaWeb)
Ghana Shippers Authority (GSA), a state agency operating under the auspices of Ministry of Transport to protect and promote the interests of shippers in Ghana, has assured cross-border women traders of its support. Mrs Monica Josiah, Head, Shipper Services and Trade Facilitation at GSA, who gave the assurance, said the partnership support to the border women residents engaged in informal trade across the border, would enable them explore the full benefits of African Continental Free Trade Area (AfCFTA).
She said not only would the partnership help the women group in exploring the benefits of AfCFTA, a free trade area encompassing most of Africa with the aim to provide broader and deeper economic integration across the continent but also, that of other development agencies in relation to trade information advocacy and research. Mrs Josiah was speaking at a familiarisation meeting with the executives of newly-formed National Cross Border Women Traders Association (NCBWTA), a cross-border women traders empowerment group, at Akanu in the Ketu North Municipality.
Kenya to become visa-free to African visitors (BBC News)
Kenya is to end visa requirements to all African visitors by the end of the year, President William Ruto has said. “It is time we... realise that having visa restrictions amongst ourselves is working against us,” he told an international conference.
Visa-free travel within the continent has been a goal of the African Union (AU) for the past decade. While there are regional deals and bilateral arrangements, progress towards no restrictions has been slow. Only Seychelles, The Gambia and Benin offer entry to all African citizens without a visa, according to a 2022 AU-backed report.
But according to Africa’s Visa Openness Index - which measures the extent to which each country in Africa is open to visitors from other African countries - most countries are making progress towards simplifying entry processes and dropping restrictions to some other nations.
“Let me say this: As Kenya, by the end of this year, no African will be required to have a visa to come to Kenya,” he said to loud cheers from the conference delegates.
The UN Economic Commission for Africa (ECA) Sub-regional Offices for North and West Africa are holding, in partnership with the Government of Ghana, the second Joint Intergovernmental Committee of Senior Officials and Experts (ICSOE) for North and West Africa on 1-3 November 2023 in Accra, Ghana. This year’s edition of the ICSOE focuses on the theme: “Investing in the Energy Transition, Food Security, and Regional Value Chains for Sustainable Development in North and West Africa.”
The ICSOE 2023 will be preceded by an ad hoc expert group meeting, also scheduled in Accra on November 1st, 2023 under the theme: “Transition to Renewable Resources for Energy and Food Security in North and West Africa.”
“Achieving food security and energy transition is instrumental to realising the SDGs in North and West Africa. This requires the 3 A: Ambition to scale up high impact- investments; Alliances with a wide range of regional, national and global actors i.e., governments, the youth and women, private sector, multilateral and bilateral organisations. Above all, it calls for Action, Act Now to deliver the SDGs promise for equitable, inclusive sustainable development for All, leaving No One behind,” said Ngone Diop, Director of the ECA office for West Africa ahead of the meeting.
Nigeria Loses Billions Of Naira To 70 Lagos-Abidjan Checkpoints (Leadership News)
Nigeria is losing hundreds of billions of Naira annually as a result of about 70 illegal checkpoints mounted on the Lagos-Abidjan and Atan-idiroko corridors by the Nigeria Police Force (NPF), LEADERSHIP can exclusively reveal. It was gathered that after the Nigeria Customs Service (NCS) had removed illegal checkpoints on the Lagos-Abidjan and Atan-idiroko corridors, the Police mounted over 70 checkpoints on the trade corridors.
The multiple checkpoints are, however, threatening inter-border trade between Nigeria-Benin Republic and other West African countries on the two important trade routes. Sources revealed that Nigeria could be losing hundreds of billions of Naira annually to the development at a critical time the country is exploring extra revenue windows.
Eliminate bottlenecks in maritime ecosystem, stop endless borrowing, experts counsel Tinubu (The Guardian Nigeria)
The financial crunch currently hitting hard on the country can be eased with domestic solutions, provided President Bola Ahmed Tinubu could wade into the port downsides and rejuvenate the nation’s trade gateways. Investigations by The Guardian revealed that the current situation at the nation’s seaports largely fall short of the level of infrastructure and standard operations that is required to uplift the ailing economy. The Federal Government, in its Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) 2024-2026 is planning to borrow N26.42 trillion loans between 2024 and 2026. Economic experts believe that rather than continuous borrowing, the nation should look inwards and develop sustainable wealth creation strategies that would strengthen its economy and improve the standard of living of its people.
The Nigerian Shippers’ Council (NSC) had estimated that the establishment of a national fleet of vessels in Nigeria is expected to yield over $9.1 billion (about N7. 2 trillion) yearly in freight revenue.
Meanwhile, the existing seaports – Lagos Port Complex and Tin Can Island Port in Lagos; Calabar Port, Delta Port, Rivers Port at Port Harcourt, and Onne Port generated N361 billion for the Nigerian Ports Authority (NPA) alone last year, notwithstanding their poor states. The Nigeria Customs Service is expected to generate N3.6 trillion revenue this year, and pundits believe that could be doubled if the standard operating environment is created.
Port Community Systems: Driving Trade in the 21st Century (World Bank)
Port Community Systems (PCS) are digital collaborative platforms that enable seamless exchange of information among a port’s many stakeholders, including customs agencies, port management, shipping and logistics companies, and freight forwarders. These platforms reduce the paperwork and administrative red tape often associated with port logistics, leading to quicker decisions and streamlined operations. Benefits include greater competitiveness, more resilient supply chains, lower costs, and reduced greenhouse gas emissions.
A forthcoming World Bank report, “Port Community Systems: Lessons From Global Experience,” to be published in conjunction with the and the International Association of Ports and Harbors, offers a step-by-step guide to implementing a PCS and explains its advantages for developing countries. The report includes detailed case studies showing how PCS have improved port operations around the world. Highlights:
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Ports are vital trade hubs: More than 80 percent of goods traded globally are shipped by sea.
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Trade is an engine of development: From 1990 to 2019, low- and middle-income countries doubled their share in global exports to 30 percent, helping to cut the proportion of their population living in extreme poverty from 47 percent to 10 percent.
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Efficient port management is data-driven: To function smoothy, modern ports require close coordination and exchange of information among users and authorities.
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Low- and middle-income nations are falling behind: Among the world’s ports that use the platform, just 16 percent are in low and middle-income countries, while 84 percent are in high-income countries.
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The time is now: The digital gap is likely to widen as emerging technologies like artificial intelligence and cloud computing continue to advance, so developing countries should move quickly to adopt PCS.
Africa’s food and agribusiness will be worth an estimated US$1 trillion by 2030, African Development Bank President Dr Akinwumi Adesina told participants of the World Food Prize Foundation’s Norman E. Borlaug Dialogue in Des Moines, Iowa on Thursday.
The annual event in America’s agricultural heartland, revolved around this year’s theme of “harnessing change,” with delegates and panellists exploring innovative ideas to shore up innovation, adaptation, and diversification, and mechanisms for improving resilience, recovery from shocks, and sustainable systems to feed the world.
Several world leaders are actively bolstering food production and food security in Africa. This includes coming together for a landmark global Feed Africa summit in Dakar (the Dakar 2 Summit) last January.
Nigeria to host Africa agric equipment and technology expo (The Guardian Nigeria)
The Federal Ministry of Agricultural and Food Security in collaboration with the CBNetwork Global Concept and other major stakeholders are set to host the world at the Africa Agricultural Machines Equipment and Technology Expo (AAMETEX), billed to hold from November 21 to 24, 2023 in Abuja. This year’s theme is “Transforming Africa’s Agriculture through Technology and Innovation”.
According to the Director, Federal Development of Agriculture at the Ministry of Agriculture and Food Security, Abdullahi Garba Abubakar, the event will feature a brainstorming session with other stakeholders in agriculture. He emphasised the need for modern agriculture in order to ensure food and nutrition security in Nigeria.
Climate Change: Developed Countries Should Assist Africa To Overcome Challenges (Leadership News)
Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Okezie Kalu, has said that Africa was at the receiving end of the climate change menace, emphasising the need for the developed countries of the world to assist the continent in overcoming the challenges. Kalu made the declaration while contributing to the general debate on the “Parliamentary action for peace, justice, and strong institutions (SDG 16)” at the Thursday session of the ongoing 147th Assembly of the Inter-Parliamentary Union (IPU) in Luanda, Angola.
He said: “In response to the partnership for climate action, Nigeria passed the Climate Change Act meant to ensure that global standards are met. To live up to the spirit and letter of our dream on climate Change. Developed countries must come to the assistance of Africa who are at receiving end of Climate Change.”
“The National Assembly has also passed the Petroleum Industry Act (PIA), which reformed the Nigerian oil and gas sector. The PIA is expected to promote transparency and accountability in the sector, strengthen the institutional framework, and attract investment.
Nigeria, others to benefit from green climate fund’s (The Guardian Nigeria)
Nigeria has been listed as a beneficiary of the 15 proposals approved by the board of the Green Climate Fund (GCF) totalling $736.4 million to fund new climate projects in developing countries. The country is among the Renewable Energy Performance Platform (REPP 2). Others in the category are Cameroon, Democratic Republic of Congo (DRC), Lesotho, Madagascar, Malawi, Niger, Sierra Leone and Zambia with CAMCO.
GCF is the world’s largest dedicated climate fund. GCF’s mandate is to foster a paradigm shift towards low emission, climate-resilient development pathways in developing countries. GCF has a portfolio of $13.5 billion ($51.8 billion including co-financing) delivering transformative climate action, covering 243 projects in more than 120 countries.
Of the 15 new funding proposals, 12 target the most vulnerable – Least Developed Countries (LDCs), Small Island Developing States (SIDS) and African States. Eight proposals are for adaptation, one is for mitigation and eight are fully cross-cutting projects.
Fight against climate change calls for significant collaboration (Tribune Online)
The Africa Environment Action Plan, the Africa Clean Energy Corridor, and the Africa Renewable Energy Initiative all indicate the continent’s strategic commitment to addressing the climate crisis. The actions proposed in these initiatives were restated in the Nairobi Declaration, which summed up the outcomes of the ACS23. Africa’s common position on food systems will benefit from cross-sectional collaboration to ensure resource efficiency and high-impact transformation.
The Declaration comprises 23 commitments, primarily addressing policy areas related to investment attraction, economic development (with a focus on youth empowerment), enhanced continental cooperation, increased renewable energy financing, support for small-scale farmers, and the expedited implementation of the African Union Climate Change and Resilient Development Strategy and Action Plan (2022-2032). Yet even as we celebrate these great interventions, we must recognize that climate change is a complex issue that no single country can solve independently; a collaborative approach involving partnerships across national governments, the private sector and the international community is required for rapid transformation.
Dr. Sultan Al Jaber, the President of COP28, has called for greater efforts to tackle adaptation finance gaps and prioritize actions to make climate finance more accessible to vulnerable nations. His remarks came during the third Climate and Development Ministerial, which was convened at Pre-COP, and co-hosted by the United Kingdom, Vanuatu and Malawi.
“People and the planet lie at the heart of the climate process – which is focused on protecting lives, livelihoods and nature,” Dr Sultan said. “To guarantee an inclusive and equitable transition to low-carbon and resilient growth, the voices of emerging and developing countries must not go unheard. COP28 must leverage an adequate response to the Global Stocktake and set out a pathway to fill the financing gaps and address shortcomings in the global climate finance architecture,” he said.
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Rail Forum and Southern African Railway Association sign letter of intent (RailBusinessDaily)
Rail Forum (RF) and the Southern African Railway Association (SARA) have signed a Letter of Intent (LoI) designed to encourage Rail Forum (RF) and the Southern African Railway Association (SARA) have signed a Letter of Intent (LoI) designed to encourage collaboration and to promote long-term co-operation in rail infrastructure development for mutual benefit in their respective markets.
Ministry of trade & industry launches infrastructure Initiatives to improve quality transformation (BusinessGhana)
The Ministry of Trade and Industry has launched the Quality Infrastructure Initiatives that will have a significant impact on the industrial transformation agenda of Ghana. The three documents of the Initiatives are the Ghana National Quality Policy, the Ghana Standards Authority (GSA) Act (2022), and the Ghana Standards Authority five-year Strategic Plan Document.
Mr Kobina Tahir Hammond, the Minister of Trade and Industry, said these documents, together with the recently passed Ghana National Accreditation Service Act and the soon-to-be established Ghana National Quality Committee, would drive Ghana’s quest to be recognised as a world- class industrial hub and the home of quality goods and services in Africa.
He said these quality infrastructure initiatives to succeed in the country’s endeavours of development and growth, however, the country needs a robust quality infrastructure to ensure consistent production and supply of quality goods and services. He said this was because all goods and services, including hospitality services, in Ghana must meet the highest international standards for the country to obtain premium rates for these goods and services.
Stakeholders Set To Brainstorm On New Ship, Ports, Infrastructure (The Tide)
In keeping with its promise to contribute and support the national vision to achieve continuous improvement in maritime operations, the management and editorial team of Maritime Nigeria, is pulling renowned maritime technocrats together under the umbrella of Distinguished Maritime Personalities, (DMPs) to dissect the industry’s issues at its 2nd National Discourse for 2023. The theme for this year’s National Discourse is “New Ship, New Ports, what Infrastructure, Skill Sets and Tools”.
According to the Publisher/Editor-in-Chief of Maritime Nigeria, Mr. Kelvin Kagbare, the Nigerian maritime domain is not only expanding, but developing bigger and deeper ports across the nation. He said, “With the successful take-off of the Lekki Deep Seaport and proposed lbom, Badagry, Gelegele, Agge and similar facilities, the issues of complementary and operability dynamics also sets in, hence the need to be abreast of developments.
“As the ports and ships gets bigger, become more sophisticated and technology driven, we have a duty to hear and learn from those whose business it is to know, what our actual competitive margins are and where we are real time. “We are confident that our DPMs forum will also give us a broadbased outlook in the area of support structure and superstructure, tools and skills, policy stability and it’s interplay with global trade”.
AFCFTA: NAFFAC Laments Multiple Checkpoints On Int’l Routes (The Tide)
The National Association of Freight Forwarders and Consolidators (NAFFAC) has cautioned the Federal Government against multiple checkpoints along the Lagos-Badagry corridor and other entry points across the six geopolitical zones to encourage Nigeria’s participation in the Africa Continental Free Trade Area (AFCFTA) Agreement.
President of the body, Mr. Adeyinka Bakare, lamented that Nigerian businesses may suffer major setbacks if government fails to resolve the bottlenecks on the movement of goods from all the entry points and international frontiers, saying that Nigerian goods and services have potentials to compete favourably in the region.
Bakare, who disclosed this on Wednesday at a roundtable meeting put together by the Association of Maritime Journalists of Nigeria (AMJON) in Lagos, expressed concerns over the multiple checkpoints manned by security agencies and touts, noting that the illegalities would further affect foreign and local investment. According to him, NAFFAC has engaged government at all levels in furtherance to tackling the illegalities along the Lagos Abidjan corridor.
Red sea’s regional, global geostrategic significance (Ethiopian Press)
There are 10 major ports on the Red Sea which transact 10% of the world economy and Ethiopia needs a port primarily for promoting her own trade network and acquisition of maritime trade route and for the economic development of the country. Ethiopia’s average GDP amounts to 110 billion USD and the nation imports goods worth 14-16 billion USD about 90% of which is through ports. Ethiopia imports 4 billion USD worth fuel and 12.5 million quintals of fertilizers and pays 1.6 billion USD for port services every year because the country has no port of her own.
As a member of BRICS, Ethiopia can effectively utilize her membership for boosting trade, investment, development of new technologies in every economic sector. Ownership and access to ports will certainly help to swiftly accelerate the socio-economic development of the country.
Analysts commend Dar Port new deal (Tanzania Daily News)
Analysts have lauded the government over the signed agreements between the Tanzania Ports Authority (TPA) and the DP World for running operations at the Dar es Salaam Port for the country’s development, saying it was good that the move has considered public opinions. Speaking in separate interviews with the ‘Daily News’ on Sunday, an Economist-cum-Investment Banker, Dr Hildebrand Shayo, said the deal will benefit both sides in a number of ways including the existing of solutions for the private funding of public initiatives and save the government money. Dr Shayo said another benefit is the use of private expertise and management in public projects which will boost overall project development and operational efficiency.
Shippers urged to embrace domestic marine insurance (The Business & Financial Times)
Mr. Arthur explained that leveraging a country’s capacity and resources to meet demands elsewhere would produce significant outcomes under the AfCFTA, as such individual African countries must look out for a product that would increase cooperation and promote trade rather than create competition. On foreign marine insurance, she said: “The biggest problem we see is that most policies people have simply don’t cover their risks.
Botswana to ramp up digitalisation of diamond industry, says president (TechCabal)
The President of Botswana, Dr Mokgweetsi Masisi, has stated the need for diamond-producing nations to incorporate technology into the sector to foster sustainability. President Masisi was speaking at the FACETS Conference in Gaborone, Botswana. Botswana is the world’s largest diamond producer by value.
The FACETS Conference was initiated by the Antwerp World Diamond Centre (AWDC) in 2022 to provide a platform for inclusive dialogue between industry players from across the value chain to address challenges and opportunities set to drive the industry in the future. Delivering his address, Masisi stated that diamond-producing nations should invest in research and development efforts that would minimise the impact of diamond mining on the environment.
“From drone-assisted surveying to advanced water management systems, these innovations are not just investments; they are our commitment to preserving the natural world for generations to come,” he said.
Country Economic Memorandum: Democratic Republic of Congo (DRC) (World Bank)
The new DRC Country Economic Memorandum outlines pathways for faster growth, job creation, and poverty reduction. Under the current macroeconomic framework, growth in the DRC will not translate into improved living conditions; ambitious economic reforms are critical to place the country on a diversified growth path conducive to middle-income country status.
The report proposes policies aimed at tackling the main bottlenecks hindering sustainable and inclusive growth and presents two case studies that illustrate the potential and the challenges of diversification: the mining and cassava value chains development. It also shows that regional trade integration and trade diversification can promote value chain development and help generate jobs, unleashing opportunities for stronger growth and improved welfare for the country’s citizens.
Tough Macroeconomic Policies Needed to Stabilize Sierra Leone’s Economy (World Bank)
Sierra Leone’s economy is projected to grow at 3.7% on average during 2023–25, below its long-term trend. This scenario is predicated on sound domestic policies, including a tight monetary stance to combat inflation, and an equally conservative fiscal policy to decrease debt pressures and rebuild fiscal space, according to the new World Bank Sierra Leone Economic Update launched today in Freetown. The report notes that risks to debt sustainability will remain elevated until fiscal balances improve further and the reliance on expensive and short-term domestic borrowings is addressed through the lengthening of maturities and greater access to concessional borrowing.
“Sierra Leone is faced with a challenging macroeconomic environment and the rapid rise in the cost of living combined with weak growth and deterioration of macroeconomic fundamentals threaten to increase the level of poverty among the population,” said Abdu Muwonge, World Bank Country Manager for Sierra Leone. The 2023 Economic Update devoted a special section on food security, examining recent trends, challenges and opportunities in three major agricultural value chains – rice, cocoa, and horticulture. It identifies the importance of supporting and empowering the private sector to undertake the required investments in the country’s agricultural sector.
Harmonizing South Sudan’s Fisheries Policies: Bridging the Gap with Continental Strategies and Global Instruments (The Guardian Nigeria)
To bolster South Sudan’s fisheries sector, a collaborative initiative between AU-IBAR (African Union-Interafrican Bureau for Animal Resources) and the Republic of South Sudan unfolded in Juba from October 19th to 20th, 2023. The central aim of this workshop was to synchronize South Sudan’s National Fisheries and Aquaculture Policy with the Continental Policy Framework and Reform Strategy (PFRS) for fisheries and aquaculture in Africa, while also recognizing and embracing pertinent Global Instruments.
The workshop concluded with the adoption of a comprehensive communiqué, outlining the recommendations and agreements made during the event. Participants expressed their gratitude to AU-IBAR for this initiative, urging its seamless transition into the implementation phase. The establishment of a National Technical Working Group and finalization of the draft report were identified as immediate next steps.
Elumelu: Africa Ready For Investments Amid Challenges (Arise News)
The Chairman, Heirs Holdings Group, Mr. Tony Elumelu, has wooed foreign investors to Africa, saying the continent was ready for investments amid socio-political and macroeconomic challenges. Elumelu, speaking during a recent invitation of Yasir bin Othman Al-Rumayyan, Governor of the Public Investment Fund (PIF) and Chairman of the FII Institute. Mr. Richard Attias in Saudi Arabia, noted that the continent has huge opportunities amid high level of unemployment, weak access to economic opportunities, and poor access to health care.
Elumelu in a chat with Attias, on the topic ‘How Africapitalism Drives Inclusive Growth,’ said, “We need to mobilise huge long-term capital into the continent to enable us leapfrog and fixed infrastructure that will need to develop. “Japan, Germany, Korea and even China have benefited from massive global capital infusion. Africa needs it and I will be failing if I do not use this opportunity to draw the attention of the world to the continent on the need to collaborate with African business leaders and more importantly those like the Tony Elumelu Foundation who like to support young African entrepreneurs. “Let’s see how we can work together to create a better future for everyone.”
NGO Forum: Enhancing Civil Society Engagement with the AfCFTA (ISHR)
Mr. Don Deya, of Pan African Lawyers Union (PALU), highlighted that current discussions, particularly those related to the rights of women in trade, need active participation from NGOs. Deya pointed out that ensuring protection for the use of Information and Communication Technologies (ICTs) within legislative civic spaces is vital. Ms. Lydia Kembabazi, representing the Institute for Human Rights and Development in Africa (IHRDA), highlighted the crucial role of civil society in every step of the AfCFTA process, from elaboration and negotiation to implementation and monitoring.
UK accused of plan to further cut cost of bananas at expense of poorest African producers (The Guardian)
It is one of the few British supermarket staples to have bucked the trend during the cost of living crisis, with the price of a bunch of bananas today no more expensive today than three decades ago. Every country in the world with cheaper prices than the UK has its own producers of the fruit. The government has now been accused of pursuing an irresponsible post-Brexit policy that could reduce the price of bananas further in the shops – but at the cost of the livelihoods of thousands of workers on small plantations in some of Africa’s poorest countries.
Banana tariff concessions have already been made in the last year to Mexico and Peru as part of the UK’s accession to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). A trade deal with Australia will see all tariffs lifted within eight years. The UK government is now engaging in a specific banana tariff review as part of its trade deal with the Andean countries – Colombia, Ecuador and Peru – which the African producers say could wipe out businesses in Ghana, Cameroon and Ivory Coast, countries whose economies are among the least diversified in the world.
Power supply challenges top list of barriers to businesses (People Daily)
The main barrier for businesses in terms of infrastructure is power, particularly for rural areas where it may be accessible but is unreliable. PHOTO/Print Kenyan businesses have identified power supply as a significant impediment to their operations, despite improvements in overall infrastructure quality, according to a recent survey by the Standard Bank Africa Trade Barometer (SB ATB). The survey indicates that the perception might have been driven by the fact that most of the businesses’ exports are sold within the East African Community (EAC).
“The main barrier for businesses in terms of infrastructure is power, particularly for rural areas where it may be accessible but is unreliable,” notes the SB ATB report.
Africa’s 125 billion barrels of oil is a game-changer for Africa’s development (Nairametrics)
Nigeria’s Minister of State for Petroleum Resources, Senator Heineken Lokpobiri has said that the estimated 125 billion barrels of oil in Africa is a great asset base to drive development on the continent. He said this during the 3rd African Local Content Roundtable which took place in Abuja, Nigeria, earlier this week. The event was organized by the African Petroleum Producers Organization (APPO) and hosted by the Nigerian Content Development and Monitoring Board (NCDMB).
According to him, Nigeria is on the brink of a remarkable transformation with capable indigenous companies ready to boost production and as regulators, the government stands ready to support them. He stated further that Nigeria is committed to in-country value addition, environmental sustainability, and boosting intra-Africa trade. During his address, he also said the event is in line with the plans the Nigerian government has regarding the oil sector:
“With an estimated amount of 125 billion barrels which represents about 10% of global carbon reserves – this is very important as a very great asset base to drive development in Africa. I believe that our responsibility as African oil-producing countries is to explore the oil and gas resources for the benefit of our citizens, business communities, and governments of our respective countries.
African governments should have LPG plans to make it more accessible to women (The Business & Financial Times)
A Deputy Chief Executive of the National Petroleum Authority, Mrs. Linda Boamah Asante, has called on African governments to initiate policies and programmes to make Liquefied Petroleum Gas (LPG) affordable and accessible to women. This, she said, would help to reduce the hazards women are exposed to from using biomass (wood fuel and charcoal) to cook.
“All government agencies and institutions should have the plan to make sure that LPG is available to women because in Africa especially in rural areas, it is the women who do the cooking so they are the ones mostly affected by emissions from biomass,” Mrs. Linda Boamah Asante said while contributing to the discussion on the topic ‘LPG: An Integral Component of Energy Access for All’ at the just ended African Energy Week in Cape Town, South Africa.
Workshop to validate EAC Food and Nutrition Security Bulletin underway in Kampala, Uganda (EAC)
African development bank launches capacity building initiative enhance trade East Africa (AfDB)
African manufacturing capabilities are set to be showcased as the AGOA forum convenes in South Africa to strengthen US trade ties (Engineering News)
Around 400 exhibitors from across Sub-Saharan Africa will demonstrate African service and manufacturing capabilities. This will take place alongside the 20th US-Sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum), scheduled for November 2 to 4, 2023, in Johannesburg, under the theme “Partnering to Build a Resilient, Sustainable, and Inclusive AGOA to Support Economic Development, Industrialization, and Quality Job Creation.”
The AGOA Forum will unite the governments of the United States and AGOA-eligible countries, in addition to representatives from key regional economic organizations and the private sector. Its agenda is to strengthen trade and investment ties between the United States and sub-Saharan Africa. The Forum will also include a “Made in Africa Exhibition,” highlighting regional value chains and celebrating the best of African innovation, entrepreneurship, and craftsmanship.
South Africa’s Minister of Trade, Industry, and Competition, Ebrahim Patel, will host a senior delegation from the United States, led by Ambassador Katherine Tai, along with high-level delegations from various countries in sub-Saharan Africa. The discussions will focus on boosting trade, fostering African industrialization, and strengthening the African Continental Free Trade Area (AfCFTA).
South Africa: AGOA 2023 - Searching for Improvement in 25-Year Programme for Africa (allAfrica.com)
Asked whether elections in African countries, particularly the upcoming in Madagascar will be a topic for discussion at the AGOA forum, Joy Basu, while uncertain whether this would be a discussion point, said: “I imagine, especially this year, the supporting of democracy on the continent is a huge focus for the administration and for our bureau in particular. Deputy Assistant Secretary of State in the Bureau of African Affairs Joy Basu said that fostering new economic engagement with countries in Africa is a top priority for President Joe Biden and the U.S. government.
US trade chief Tai set to travel to South Africa for Agoa Forum (Engineering News)
The Pan-African Payment and Settlement System (PAPSS), a groundbreaking initiative developed by the African Export-Import Bank (Afreximbank) to revolutionize cross-border payments and boost intra-African trade, celebrates a significant milestone as it receives a historic endorsement from the Governors of the Central Banks in the Caribbean region. All eleven Central Banks have unanimously adopted PAPSS as the preferred system for processing the settlement of intra-regional trade transactions.
Operational in the six countries of the West African Monetary Zone (WAMZ) – and with transactions initiated daily by traders, SMEs and individuals – PAPSS is gaining traction on the African continent as a transformative solution enhancing the operational efficiency of cross-border payments, while promoting economic integration and trade facilitation.
In adopting PAPSS, the Central Banks in the Caribbean region have recognized its immense potential for unlocking new opportunities for trade growth and cooperation within their respective jurisdictions. By streamlining and expediting the settlement process, PAPSS will eliminate the complexities and inefficiencies that often hinder intra-regional trade, promoting monetary stability and economic development across the Caribbean.
AfrieximBank Set to Decide on Kenya’s Bid to Host the Pan-African Settlement System (PAPSS) (BitcoinKE)
The African Export-Import Bank (Afreximbank), based in Cairo, has initiated a review of Kenya’s proposal to establish a Pan-African settlement house for intra-African trade agreements, reports indicate. According to Denys Denya, the Executive Vice President for Finance, Administration, and Banking Services at Afreximbank, the trade financier’s highest governing body has formally considered Kenya’s application.
In July 2023, the Central Bank of Kenya Governor, Kamau Thugge, revealed Nairobi’s proposal to become the host for the Pan-African payment and settlement system (PAPSS). This system plays a vital role in enabling intra-African payments across various national currencies on the continent.
“The Kenyan government has decided to support the rollout of PAPSS. The President of Kenya, William Ruto, is actually championing this,” Mr Denya told reporters on the sidelines of a roadshow ahead of the third Intra-African Trade Fair (IATF2023) to be held in Cairo between November 9 and 15 2023. “There’s a governance council that is considering that proposal. The decision will be made shortly and communicated.”
DDG Ellard: Africa shows admirable leadership in achieving development objectives (WTO)
Deputy Director-General Angela Ellard discussed the role of African countries in advancing the multilateral trading system during the 24th U.S. — Africa Trade & Investment Conference/Expo that took place in Miami on 26 October. In particular, DDG Ellard highlighted the role of African WTO members in achieving outcomes at the 12th Ministerial Conference (MC12) on fisheries subsidies, food security and easing access to COVID-19 vaccines as well as their active engagement in ongoing initiatives.
“The WTO is the only global international organization dealing with the rules of trade covering its 164 Members, including so many African countries. We are the caretaker of the multilateral trading system. Our agreements are aimed at opening trade and creating opportunities for all. Our founding document reflects the aspiration of our Members to ensure higher standards of living, full employment, and growing income for all and the people they represent, especially developing and least-developed countries.
That objective ties in so well with Africa’s Agenda 2063, which is aimed at achieving an integrated, prosperous, and peaceful Africa. Africa shows admirable leadership at global and regional levels to achieve these goals.
IMF warns Africa of economic vulnerabilities as China’s economy slows (The Standard)
The International Monetary Fund is cautioning African nations about the possibility of a regional economic downturn and the ripple effects that China’s slowing economy could bring. Africa and China have forged economic ties over the past 20 years, making the Asian giant the continent’s largest trading partner. Africa exports metals, minerals and fuel to China, while importing manufactured goods and machinery from that country. The IMF says the partnership is threatened by China’s economic slowdown and aging population, trade tensions, geopolitics and the ongoing impacts of the COVID-19 pandemic.
China’s economic recovery from the pandemic slowed in recent months due to a sluggish property market and weak consumer spending. China’s trade data showed that exports and imports continued to decline as demand for Chinese goods waned. Gerrishon Ikiara, an international economics lecturer, said Africa needs to find new trading partners to develop its economies
“If the Chinese economy is slowing down, Africa needs to diversify its trading partners and to diversify either imports or exports to Asia, other parts of Africa, Latin America and the U.S.,” he said. “If there is a problem with our exports to China, we need to look for new markets.”
Saudi Arabia seeks trade deals, mulls BRICS offer to lift exports (Moneycontrol)
Saudi Arabia plowing billions of dollars into an attempt to become a global supply chain hub and creating new industries like electric vehicles and pharmaceuticals to meet local demand and for export to the Middle East and Africa. Saudi Arabia is looking to sign more free trade agreements and still considering joining the BRICS club of emerging nations, as it looks to boost non-oil exports, according to the kingdom’s minister of economy and planning.
“Exports are growing, but not as much as we want them in terms of non-oil exports,” Al Ibrahim said. “We want them to grow faster.” Saudi Arabia is lining up more free trade deals as it pursues a plan to diversify the $1.1 trillion economy to reduce its dependence on oil. It’s plowing billions of dollars into an attempt to become a global supply chain hub and creating new industries like electric vehicles and pharmaceuticals to meet local demand and for export to the Middle East and Africa.
Safeguards Committee reviews latest notifications, improvements in committee functions (WTO)
Committee reviews latest member notifications on anti-dumping actions, legislation (WTO)
COP28: Financing, increased adaptation ‘central to SA’s position’ (Daily Maverick)
‘As you know, there’s been pledges since 2009 of about $100-billion from developed countries to developing countries, and that pledge has not yet been fulfilled. So it is quite important that we receive a presentation on that to see what’s really going on there. We are also negotiating a new goal on financing; the $100-billion expires next year,” said Maesela Kekana, South Africa’s chief negotiator to COP28.
“By 2025 we should have concluded the negotiations for a new goal. Our new goal needs to be based on the needs of developing countries, because the $100-billion goal just dropped from the sky, and is completely inadequate for our needs. So that negotiation is really important.”
Developing countries need climate financing now more than ever as extreme temperatures continue to usher in devastating disasters that have hit those nations the worst. This has resulted in many losing not only their lives but livelihoods as well, and governments not having the means to compensate those affected.
Loss and damage and climate colonialism (Global Justice)
Green Climate Fund: USD 736 million for new projects and readiness strategy to accelerate climate action (Green Climate Fund)
Africa’s fashion industry is growing to meet global demands: UNESCO (ABC News)
Currently valued at $15.5 billion worth of exports annually, the earnings from the continent’s fashion industry could triple over a decade with the right investment and infrastructure, according to UNESCO Director-General Audrey Azoulay, who launched the organization’s first report on fashion in Africa in Nigeria ‘s economic hub of Lagos. Africa’s fashion industry is growing rapidly to meet local and international demand but inadequate investment limits its potential, UNESCO said Thursday in a report released during Lagos Fashion Week.
Findings from the Women, Business and the Law new pilot dataset reveal glaring gaps in the implementation of laws (World Bank Blog)
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South Africa: World Bank Backs Reforms to Advance Energy Security and Low Carbon Transition (World Bank)
The World Bank Board supports the Government of South Africa’s efforts to promote long-term energy security and a low carbon transition with a $1 billion Development Policy Loan (DPL). The loan endorses a significant and strategic response to South Africa’s ongoing energy crisis, and the country’s goal of transitioning to a just and low carbon economy.
“This operation comes at a crucial time for South Africa as it will provide much needed fiscal and technical support, enabling us to pursue our policy priorities in the energy sector including easing the electricity crisis in the long term, stimulating private sector engagement and creating jobs in the renewables space,” says Mmakgoshi Lekhethe, Deputy-Director General: Asset and Liability Management, of the National Treasury of South Africa.
Automotive sector calls for greater policy support to roll out EVs (Engineering News)
Panellists discussing the automotive manufacturing sector during the Manufacturing Indaba on October 25 agreed that South Africa needs a strong directive and specific targets related to infrastructure development for electric vehicles (EVs).
Currently, there is no roadmap envisioned for the transition to EVs in South Africa, with the Automotive Masterplan only making reference to a target of achieving 1% of global production and the National Development Plan only speaking in broad terms about the energy transition overall.
“We need direct policy supporting the automotive sector with clear targets over five- and ten-year terms. In Norway, for example, government policy has helped the country to breach the price parity gap between EVs and internal combustion engine (ICE) vehicles, using a number of instruments,” explained nonprofit organisation Electric Mission executive director Hiten Parmar.
No more raw minerals exports from Namibia, aims to boost domestic industrialisation efforts (New Era)
President Hage Geingob yesterday told the world that Namibia will no longer export unprocessed mineral products. Speaking at the European Union and Namibian Business Forum taking place in Belgium, Geingob’s statement came after Cabinet decided to prohibit the exportation of Namibia’s critical minerals in raw form. This is in a bid to create more local jobs, more local value and to boost domestic industrialisation efforts.
Namibia’s economy is intricately linked to the extraction and processing of minerals for export, contributing significantly to its gross domestic product (GDP) and foreign exchange earnings. This applies to minerals such as unprocessed crushed lithium, graphite, cobalt, manganese and rare earth elements. Geingob was speaking at the opening of the first EU-Namibia business forum, taking place under the theme, ‘Mobilising quality investment and value addition for green growth in the EU-Namibia partnership’.
IMF Staff Concludes Staff Visit to Zimbabwe (IMF)
Zimbabwe’s economy has continued its post-COVID recovery, but enhancing its longer-term growth potential would require strong reform efforts. Real GDP is projected to grow by around 4.8 percent in 2023, supported by strong activity in the mining sector and—reflecting the beneficial impact of structural reforms—in agriculture and energy sectors. Growth is expected to slow to 3.5 percent in 2024 due to weaker global demand for minerals and a weather- related slowdown in agriculture.
Structural reforms aimed at improving the business climate and reducing governance vulnerabilities are key for promoting sustained and inclusive growth and would bode well for supporting Zimbabwe’s development objectives embodied in the country’s National Development Strategy 1 (2021-2025). Sustainable development will also require a resolution of debt overhang. The Fund continues to provide policy advice and extensive technical assistance in the areas of revenue mobilization, expenditure control, financial supervision, debt management, economic governance, and macroeconomic statistics.
Pakistan beats the US and Netherlands, to become Kenya’s largest export market (Business Insider Africa)
A breakdown of Kenya’s export earnings revealed that Pakistan purchased Kenya goods worth Ksh48.28 billion ($321.44 million) in the first 8 months of 2023. This represents a 19.29% bump over Ksh40.47 billion ($269.44 million) in the same period in 2022.
According to further analysis by Kenya’s National Bureau of Statistics (KNBS), the Netherlands, in the same period under review accounted for Ksh43.94 billion ($292.5 million) of Kenya’s export earnings and the US accounted for Ksh42.89 billion ($285.6 million). Pakistan has acquired a taste for Kenyan tea and has become the number one consumer of the product, alongside small quantities of leather, coffee, and spices.
Mozambique – adding value through industrialisation (Freight News)
“With its considerable mineral reserves, vast arable land, extensive coastline and harbours, transport corridors, and revenues from megaprojects in coal and gas, Mozambique has good prospects for advancing industrialisation,” writes Kasper Vrolijk of the German Institute of Development and Sustainability in a country report. Constraints include “skills shortages, inadequate infrastructure and issues around the regulation of labour, access to land and finance, taxation, investment and customs”.
While commodities make up around 95% of total exports, value is added to 20% by Mozal aluminium in the form of ingots.
Since 2014, further value has been added locally by Midal Cables International, which exports aluminium wire and overhead conductors for power transmission and distribution. Responses to global warming bring fresh opportunities. “We have all the conditions to implement green industrialisation, which we have already started with – for example, the construction of the Mphanda Nkuwa hydroelectric dam and solar power projects all over the country.” Trade and Industry Minister Silvino Moreno told the 28th Conference of Senior Officials of the United Nations Council for Southern Africa (Uneca).
According to the World Bank’s latest Algeria Economic Update, Algeria’s economy has reached its pre-pandemic level in 2022, the recovery extending to the first half of 2023. Algeria’s growth is expected to retrieve its pre-pandemic trajectory by 2024, notably supported by the hydrocarbon and agricultural sectors. Higher investment, including in large industrial projects, assisted economic activity in the first quarter of 2023, and it is expected to keep supporting growth between 2023 and 2025. Sustained efforts to enhance Algeria’s business environment and attract private-sector investment will be key to maintaining this trend.
Kamel Braham, the World Bank’s Resident Representative to Algeria, commented, “Algeria has the potential to diversify its economy, reduce its dependence on imports, and increase non-hydrocarbon exports while sustainably creating private sector jobs. Although it is too early to attribute it to recent reforms, the sustained economic performance is encouraging, and efforts to stimulate private sector investment should be strengthened.”
Tracking the decline in oil and gas prices since mid-2022, Algeria’s export revenues declined markedly during the first half of 2023, but the trade balance remained positive, and foreign exchange reserve accumulation continued. Lower hydrocarbon revenues and rising government spending, notably on civil service wages, are expected to be cushioned by the announced large dividends from Sonatrach. The budget deficit is nonetheless expected to expand albeit it will be partly financed by savings from oil revenues accumulated since 2021.
CargoX consortium leads development of Uganda’s trade facilitation platform (Yahoo)
Document transfer solutions provider CargoX announced it has been chosen to support Uganda’s Presidential Advisory Committee on Exports and Industrial Development (PACEID) as it looks to build out a platform to service the country’s export growth. PACEID reported in late August that it had signed a memorandum of understanding with technology supporters to launch its trade facilitation platform TradeXchange.
In Tuesday’s announcement, a technology consortium including Technology Associates and CargoX explained the platform would be built off of CargoX’s blockchain document transfer solution. “We are pleased to work with CargoX, who already does work in [the Common Market for Eastern and Southern Africa (COMESA)] and many other parts of the world, to bring fresh thinking on how to gather, build and utilize data for our exports from Uganda. Our target of [$6 billion] in five years would be difficult to attain without more [work on] our hard infrastructure as well as the soft one in digital performance,” said Odrek Rwabwogo, chairman of PACEID. This is CargoX’s second sizable partnership aimed at bringing more efficient import and export practices to global markets.
EAC applauds Uganda and the Democratic Republic of Congo for visa free initiative (EAC)
The East African Community (EAC) has applauded the decision by the Republic of Uganda and the Democratic Republic of Congo (DRC) to waive visa fee requirements for citizens travelling across their borders. The decision which was taken during the 8th Ordinary Session of the Joint Permanent Commission between the two Partner States in Kinshasa, DRC, on Saturday, 21st October, 2023 will significantly enhance trade which is the driving force behind the integration process. Uganda becomes the third EAC Partner State to waive visa requirements for DRC citizens after Kenya and Tanzania.
The EAC Secretary General, Hon. Dr. Peter Mathuki, said that the move by Uganda and DRC to waive visa fees for their nationals was in harmony with the provisions of the EAC Common Market Protocol, which among other freedoms and rights, provides for the free movement of persons and workers across the region. Dr. Mathuki said that the waiver of the visa entry requirements was a sign of political goodwill among the Partner States in moving forward integration, adding that it would go a long way in promoting intra-regional trade that currently stands at just 15%.
Active private sector participation key to the successful implementation of the AfCFTA in Botswana (UNECA)
The private sector, key to trade development in Africa, has been urged to actively participate in the full implementation of the African Continental Free Trade Area (AfCFTA) to accelerate national and regional economic growth and development.
Opening the National Consultative Forum on the Development of the African Continental Free Trade Area (AfCFTA) Implementation Strategy for Botswana, the Acting Minister of Trade and Industry, Hon. Dumizwani Mthimkhulu, urged the private sector in Botswana to brace themselves for implementation of the AfCFTA. The private sector should take advantage of the opportunities to grow their business through regional value chains and cross border trade under the AfCFTA which has a market size of over 1.3 billion people in Africa, alone.
“The development of the Strategy resonates with Government’s aspiration for economic transformation through mindset change and changing the way we do business, if we are to graduate the county to a high-income status by 2036, “said Hon. Mthimkhulu, highlighting that the development of the strategy has to be driven from a private sector perspective as the active users of the Agreement.
Seven signatories for Lobito corridor extension MoU (International Railway Journal)
The African Development Bank (AfDB) and Africa Finance Corporation (AFC) have joined the United States, the European Union (EU), Angola, the Democratic Republic of Congo (DRC), and Zambia in signing a memorandum of understanding (MoU) to develop the Lobito Corridor and the new Zambia-Lobito line.
The AFC has been appointed lead project developer to work with the other signatories. The proposed line runs from Luacano in Angola to Kalumbila in Zambia, continuing to connect with the existing network at Chingola, which runs across the border to the DRC.
The MoU, signed on the margins of the Global Gateway Forum in Brussels, Belgium, on October 26, outlines the signatories’ intention to collaborate across multiple sectors to realise the full economic potential of the corridor, building on the Lobito Corridor Transit Transport Facilitation Agency agreement signed by the three African governments in January and anchored by previous investment in the new Zambia-Lobito line.
EU signs strategic partnerships on critical raw materials value chains with DRC and Zambia and advances cooperation with US and other key partners to develop the ‘Lobito Corridor’ (European Commission)
Today, at the Global Gateway Forum taking place in Brussels, the EU signed three Memoranda of Understanding (MOU) with partners to develop critical raw materials value chains and boost transport connectivity.
As a direct follow up to the G20 Summit in New Delhi in September 2023 and its commitment to the Partnership for Global Infrastructure and Investment (PGII), the EU – represented by Commissioner Jutta Urpilainen –, the United States of America, the DRC, the Republic of Zambia, the Republic of Angola, the African Development Bank and the Africa Finance Corporation signed today a Memorandum of Understanding to support the development of the “Lobito Corridor”. This transport corridor will connect the southern part of the DRC and the north-western part of the Republic of Zambia to regional and global trade markets via the Port of Lobito in Angola.
The Global Gateway strategy will play a central role in supporting the actions under the partnership on critical and strategic raw materials value chains with the DRC and the sustainable raw materials partnership with Zambia. The two Memoranda of Understanding signed today establish close cooperation in five areas: Integration of sustainable raw materials value chains; Mobilisation of funding for development of infrastructure; Cooperation to achieve sustainable and responsible production; Cooperation on research and innovation; Capacity building to enforce relevant rules.
Signing of the Memorandum of Understanding on the Development of the Lobito Corridor and the Zambia-Lobito Rail Line (United States Department of State)
SADC and AfDB deliberate on the Regional Integration Strategy Paper for Southern Africa (SADC)
Ms. Angele Makombo N’tumba, the Acting Executive Secretary (ES) of the Southern African Development Community (SADC), received a courtesy call from Ms. Leïla Farah Mokadem, Director General of the African Development Bank (AfDB) for Southern Africa on 23rd October 2023 in Gaborone, Botswana.
The courtesy meeting served as an introductory session for the consultative mission on the Combined Mid-Term Review and Regional Portfolio Performance Review of the Regional Integration Strategy Paper for Southern Africa (RISP 2020-2026), scheduled from 23 - 27 October 2023.
The RISP was approved in November 2022 and identifies infrastructure connectivity, market integration and industrialisation as key focal priorities that are operationalised the Bank’s High 5s themes on Regional Integration; Feed Africa; Light Up and Power Africa; Industrialise Africa; and Improve the Quality of Life for the People of Africa.
The consultative mission will undertake a review on the strategic relevance of the RISP to the regional priorities of SADC, take stock of progress on the implementation of the RISP and consolidate lessons for subsequent post-2026 regional strategy. The mission will be facilitated through technical consultations across sectors such as agriculture, trade, energy, water, transport, ICT, climate change and green growth, blue economy, disaster risk reduction, gender, finance, and investment.
The fifth review of the trade policies and practices of the Southern African Customs Union takes place on 25 and 27 October 2023. The basis for the review is a report by the WTO Secretariat and reports by the Governments of Botswana, Eswatini, Lesotho, Namibia and South Africa.
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pdf WTO Trade Policy Review of SACU: Report by the Secretariat (1.02 MB)
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pdf WTO Trade Policy Review of SACU: Report by SACU (726 KB)
Patel expresses confidence about South Africa’s continued inclusion in Agoa (Engineering News)
Ahead of South Africa hosting the US-Africa Trade and Economic Cooperation Forum – also called the Agoa Forum – from November 2 to 4, Trade, Industry and Competition Minister Ebrahim Patel on October 26 briefed the media on the state of readiness for the forum, expressing confidence that the South African government’s relations with the US were strong. The Agoa Forum, which will be in its twentieth instance, will see the government of the US and those of Agoa-eligible countries, as well as representatives from the private sector, civil society and labour, engaging on trade and investment matters. South African stakeholders hope that the forum will reaffirm the US administration’s commitment to the African continent and provide opportunities to make Agoa more transformative.
Various South African stakeholders have been motivating for the extension and renewal of the African Growth and Opportunity Act (Agoa) US preferential trade framework for the next ten years; however, questions around South Africa’s dalliance with Russia amid its invasion of Ukraine have created uncertainty on whether the US will include South Africa in Agoa’s extension and renewal. Agoa in its current form is due to expire in 2025.
The theme of this year’s Forum is Partnering to Build a Resilient, Sustainable, and Inclusive AGOA to Support Economic Development, Industrialization and Quality Job Creation.
President Ramaphosa to host AGOA forum (SAnews)
Bill could extend Agoa inclusion by two decades (Freight News)
Large African delegation expected to attend the AGOA Forum in SA (SAnews)
For more info, see AGOA.info: AGOA Forum 2023 Resources
Global Gateway Forum: Commission and KfW sign guarantee agreement to enhance local currency financing in Africa (Global Gateway Forum)
Today, the European Commission and the German development bank KfW signed an agreement for the African Local Currency Bond guarantee programme that will enhance access to long-term financing in local currency for African local businesses. In the framework of the programme, the Commission provides €100 million to cover KfW’s guarantees for investors in the African Local Currency Bond Fund that will further mobilise €820 million in private investments by 2027. The guarantee programme is part of the European Fund for Sustainable Development plus (EFSD+), a financing tool of Global Gateway. Commissioner Urpilainen and KfW’s Executive Board Member Laibach signed the agreement at the Global Gateway Forum that takes place in Brussels.
European Commissioner for International Partnerships, Jutta Urpilainen, said: “In recent years, our partner countries have faced multiple crises with stark economic consequences. To overcome current and future crises, we want to support partners in becoming more resilient through the Global Gateway investment strategy. Developing local and regional capital markets is crucial, as they play key role in financing necessities like affordable housing, renewable energy, agriculture, health and education. The African Local Currency Bond guarantee programme signed today will increase economic resilience in Africa by enhancing access to long-term financing in local currency for African businesses.”
Global Gateway Forum: EU and Finnfund launch the Africa Connected Programme to mobilise more than €1 billion of sustainable investments in digital infrastructure (Global Gateway Forum)
At the Global Gateway Forum, European Commissioner for International Partnerships, Jutta Urpilainen, and Finnfund CEO, Jaakko Kangasniemi, have officially signed the Africa Connected Programme, a landmark guarantee agreement aimed at mobilising more than €1 billion in sustainable investments for digital infrastructure and digital service platforms in Sub-Saharan Africa. Finnfund becomes a first-time implementing partner of European Fund for Sustainable Development Plus, the Global Gateway’s financial arm.
Commissioner Urpilainen said: “The EU and Finnfund share a vision for a more connected and economically empowered digital future of Sub-Saharan Africa. The guarantee presented today will help mobilising sustainable private investment to realise that vision, also in Least Developed Countries.
The Africa Connected guarantee programme, entailing up to EUR 100 million in EFSD+ guarantee capacity, will serve to mobilise sustainable investment into digital infrastructure and digital service platforms in Sub-Saharan Africa. Africa Connected forms an integral part of the Global Gateway Strategy, enhancing the digital connectivity in Sub-Saharan Africa, especially in Least Developed Countries and countries in fragile context.
17 African countries join workshop to enhance access to climate change adaptation funds (Global Environment Facility)
Representatives from 17 African countries gathered recently at a Global Environment Facility workshop to share lessons on how to deal with the climate crisis unfolding across the continent as well as enhancing access to adaptation funding through the GEF-managed Least Developed Countries Fund (LDCF).
The four-day workshop held in Addis Ababa, Ethiopia from October 2 targeted the adaptation needs of African Least Developed Countries – where the climate crisis threatens to set back decade-long efforts to improve people’s lives by blocking development pathways.
Ethiopia’s Planning and Development State Minister Sandokan Debebe underscored how Africa is at the “forefront” of cascading climate effects. “Our continent faces consecutive droughts, floods, and locust infestations, endangering lives and livelihoods, hindering development gains, and impeding progress towards sustainable development goals,” he said.
Minister Debebe also indicated the resolve of African countries to counter these effects. “We are committed to addressing these challenges through national strategies and initiatives,” he said. The Minister highlighted how Ethiopia is taking action to bolster national climate resilience through the Green Legacy Initiative, a national tree planting program being unrolled across the country’s urban and rural areas.
Climate efforts enable Africa to transform into global green hub (China Daily)
COP28: UNCTAD and partners to show how trade can advance pro-development climate goals (UNCTAD)
UNCTAD, in partnership with the International Chamber of Commerce, the International Trade Centre and the World Trade Organization, will jointly host the “Trade House pavilion” at the 28th UN climate change conference (COP28) to spark discussions and advance consensus on trade-related measures that can help drive both climate and sustainable development actions.
COP28 is slated for 30 November to 12 December in Dubai, United Arab Emirates, and the pavilion will bring trade and climate policymakers and experts together for the first time in a UN climate conference. UNCTAD will also contribute to the COP28 Trade Day on 4 December, the first time the climate summit will dedicate an entire day to discussions on trade’s role in climate action.
“Climate and trade policies need to work together. As the world is coping with the devastating effects of global warming, it’s time for trade to play its role in shaping climate action that fosters inclusive and sustainable development,” UNCTAD Secretary-General Rebeca Grynspan said. “This starts with the international organizations with a trade mandate joining forces, and UNCTAD is pleased to work with our partners to host this first Trade House pavilion at COP28,” she added.
Chenai Mukumba: The current international financial system is no longer fit for purpose (Tax Justice Network Africa)
Tax Justice Network Africa (TJNA) Executive Director Chenai Mukumba has supported calls for the overhaul of the international financial system, saying it is no longer fit for purpose. Speaking as a key respondent during the High-Level Dialogue on Financing for Development at the 78th Session of the United Nations General Assembly (UNGA), Ms Mukumba noted that there was an urgent need for an intergovernmental forum on tax cooperation where all member states are able to participate on an equal footing.
She urged member states to adopt the proposal for a framework convention on international tax cooperation as it has the most potential to change the status quo for developing countries. She lauded the spirited efforts by the African Group that culminated in the adoption by consensus of the African Group resolution on the promotion of inclusive and effective international tax cooperation.
“The importance of reform of the global tax system is that while countries have a sovereign right to collect taxes, illicit financial flows through tax evasion and avoidance prevent the effective exercise of this right. Therefore, an ineffective international tax system limits the sovereign rights of our states,” she noted.
AU calls for combating illicit financial flows to boost Africa’s inclusive growth (Xinhua)
The African Union (AU) said Wednesday that combating illicit financial outflows from the continent will accelerate efforts to achieve inclusive growth and sustainable development. Patrick Ndzana Olomo, the acting head of the economic policy and research division at the Department of Economic Affairs of the AU Commission, told a regional forum in Nairobi, the capital of Kenya, that illicit financial outflows through theft or tax evasion reduce the ability of Africa to raise its own resources in order to achieve its development goals.
“Part of the reason for Africa’s financing deficits is the pervasive issue of illicit financial flows to jurisdictions outside the continent,” Olomo said during the 2023 African Parliamentary Network on Illicit Financial Flows and Taxation Conference.
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Poultry industry welcomes green light for imports (Freight News)
The South Africa Poultry Association (Sapa) has welcomed the opening up of imports to fertile eggs for hatcheries including products such as powder and liquid eggs. This comes after Minister of Agriculture Thoko Didiza announced that the government would allow imports of poultry products to ensure sufficient stock for the festive season.
Department of Agriculture, Land Reform, and Rural Development (DALRRD) spokesperson Reggie Ngcobo said the department is working with all stakeholders in the poultry industry and “doing everything possible to contain the Highly Pathogenic Avian Influenza (HPAI) which is plaguing not only South Africa but other parts of the world.
“Since the 1st of September, the department has granted 115 permits for fertiliser eggs, 48 permits for egg powder, 2 406 permits for poultry meat and 24 permits for table eggs. “A permit might be for a shipping container up to 10 000 tonnes,” Ngcobo said. Sapa’s Egg Organisation general manager Abongile Balarane said these are “good steps” to assist the industry during the crisis.
The Board of Directors of the African Development Bank Group have approved South Africa’s Country Strategy Paper (CSP) 2023-2028 The Bank’s interventions over the next five years will focus on two priority areas: improving governance and developing the private sector in southern Africa’s largest and most populated country.
The CSP 2023-2028 aims to support the South African government’s efforts to tackle its structural challenges, promote industrialization and establish a faster, more inclusive growth trajectory to reduce poverty for the long term. Its indicative operational program for 2023-2028, amounts to a total of $1,54 billion, comprising six sovereign operations totaling $887 million and seven non-sovereign operations totaling $654 million.
In the first priority area, the African Development Bank will support efforts to improve economic governance and boost private investment to promote inclusive growth and create decent jobs. This will help broaden access to the main social and economic services, improve skills and employability, and increase resilience to external and climate shocks.
In the second priority area – developing the private sector – the African Development Bank aims to improve access to high-quality infrastructure, boost productivity and strengthen competition to promote growth driven by the private sector and job creation through transformative projects. Finally, there will be an emphasis on protecting infrastructure from the effects of climate change to strengthen sustainability and resilience, a goal that will be at the forefront of all infrastructure projects.
Customised manufacturing for other markets is key for sector growth, panel finds (Engineering News)
As consumer behaviour and preferences change in the wake of sustainable options, coupled with incoming decarbonised goods trade regimes, it is worth considering more “glocalisation” opportunities for the South African manufacturing sector. This was the consensus reached by a panel on globalisation and localisation during the second day of the Manufacturing Indaba on October 25. The panel described glocalisation as the modification and customisation of products to suit a local market or local conditions, which is becoming increasingly prevalent among manufacturers globally.
Glocalisation has, in no small part, been enabled by software as a leveller of production, explained software training academy WeThinkCode CEO Nyari Samushonga. She cited the example of mobile money, which originated in East Africa, which solved the issue of many people being “unbanked” and moving money around unsafely or inefficiently. Although manufacturing has layers of complexity, a computer and access to the Internet had allowed for the creation of many useful solutions and product movements in Africa. These digital advancements have also enabled local products to be ordered, shipped and consumed internationally.
EU and Namibia agree on next steps of strategic partnership (European Commission)
Today, on the eve of the Global Gateway Forum, Commission President Ursula von der Leyen and President of Namibia Hage Geingob endorsed the roadmap for the EU–Namibia strategic partnership on sustainable raw materials value chains and renewable hydrogen, supported by €1 billion in investments by the EU, its Member States and European financial institutions. the EU will also support an upcoming study for the development of the Port of Walvis Bay into an industrial and logistics hub for the region, contributing to its integration and economic development.
Commission President Ursula von der Leyen said: “Thanks to its abundant renewable energy potential, Namibia is becoming a front-runner in the green hydrogen space. The EU is proud to be a partner in this transformative journey towards green industrialisation. Together we can further decarbonise our economies, create jobs and ensure a more prosperous and greener future for our societies.”
President of Namibia Hage Geingob said: “Namibia recognises that its world-class renewable energy resources provide a strong foundation upon which we will build a sustainable and impactful green industrial base. Namibia is also cognisant that to fully capture the opportunity at hand, we will have to mobilise fit for purpose capital that appropriately prices risk in order to optimise the cost of said capital. This is a key element that will form the cornerstone of this transformative partnership with the EU.”
Govt prepares for green hydrogen legislation (The Namibian)
The Ministry of Mines and Energy is set to convene its first-ever workshop to lay the groundwork for the development of legislative measures to facilitate the implementation of Namibia’s green hydrogen projects next week. The workshop aims to address the absence of existing regulatory frameworks for green hydrogen projects, which poses a significant challenge to their successful implementation.
Green hydrogen commissioner James Mnyupe says the workshop will culminate in the development of a legislative roadmap and the establishment of specialised working groups to address pivotal aspects of the new legislation. Capital costs and technological complexities associated with green hydrogen production require a supportive legal environment to foster investment security.
“This initiative underscores Namibia’s commitment to sustainable energy practices and the ambition to emerge as a leader in the green hydrogen industry, while also engaging international experts to inform decisions based on global best practices,” Mnyupe says. Meanwhile, Namibia’s green hydrogen programme, headed by Mnyupe, is gearing up for a dynamic start in 2024, with a team of eight executives to support the Ministry of Mines and Energy in realising the goals and objectives of the Synthetic Fuels Strategy.Mnyupe says applications for these positions have already received an overwhelming response.
Egypt’s trade exchange with 11 countries in East, South Asia reaches $34.5bln in 2022: CAPMAS (ZAWYA)
The Central Agency for Public Mobilization and Statistics (CAPMAS) released its annual report on Tuesday, revealing the trade exchange between Egypt and 11 countries in East and South Asia during 2022. The report covers China, Malaysia, India, Taiwan, Japan, Indonesia, Pakistan, Thailand, South Korea, Singapore, and Bangladesh.
According to CAPMAS, the total value of trade between Egypt and these countries was $34.5bn in 2022, with a 15.9% increase in Egyptian exports and a 3.9% increase in imports compared to 2021. Egyptian exports to East Asia amounted to $7.7bn, while imports from East Asia reached $26.8bn.
The report highlighted that South Korea was the top destination for Egyptian exports, with a value of $2bn in 2022, up from $0.6bn in 2021. This was mainly due to the export of liquefied natural gas to South Korea. India came second, with a value of $1.9bn in 2022, down from $2bn in 2021. Crude oil was the main item exported to India.
Togo Economic Update: Unlocking Togo’s Growth Potential (World Bank)
According to the Togo Economic Update released today by the World Bank, trade openness and increased private investment mobilization will be key to unlocking Togo’s growth potential. Titled Unlocking Togo’s Growth Potential, the report begins with an analysis of the performance of Togo’s economy, which has been buffeted by multiple shocks since 2020, and the drivers of growth over the medium term. Against the backdrop of a persistently challenging global environment, economic growth is expected to remain at around 5.2% in 2023 and 2024, before gaining strength and climbing to 5.8% in 2025, buoyed by a rebound in external demand and favorable conditions for private investment.
The second part of the report focuses on the role of regional integration in accelerating Togo’s development and underscores the importance of cross-border trade, the advantages of the Port of Lomé, and the potential role of the African Continental Free Trade Area (AfCFTA) in trade openness and foreign investment mobilization. Improved connectivity with landlocked countries is expected to promote domestic exports and transit trade, thereby contributing to the development of secondary cities along the Lomé-Ouagadougou-Niamey corridor.
MAN raises alarm over implications of lifting importation ban on 43 items by CBN (Tribune Online)
Manufacturers Association of Nigeria (MAN) has raised the alarm over implications and dangers envisaged on the reversal of the 43 items on the prohibition list by the Central Bank of Nigeria (CBN), describing it as policy summersault. In a statement by the Vice President of MAN, South-West Zone, Dr. Kamoru Yusuf, who is also the Chairman Basic Metal, Iron and Steel and Fabricated Metal Products, said that reversal of the 43 items “is not only dangerous but also very unhealthy for the nation’s economy”.
“The effect of the reversal and removal of ban on the 43 items will create a serious setback on the productive sector; thereby impacting negatively on virtually all other critical areas; such as unemployment, youth restiveness, wrong declaration at the ports, importation and flooding of Nigeria market with substandard products and above all, proliferation of the country with arms and ammunitions.
Foreigners exploit gaps in freight forwarding to dominate sector (The Guardian Nigeria)
Indigenous freight forwarders have expressed fear of Indians, Chinese, Koreans and Lebanese currently and nearly monopolising the entire maritime trade due to discordance among local freight forwarders, thereby posing threat to Nigerians’ participation in the African Continental Free Trade Area (AfCFTA) agreement.
The former Interim President, Association of Nigerian Licensed Customs Agents (ANLCA), Ujubuonu Pius, said foreigners dominate Nigeria’s trade from point of manufacture, logistics to clearance at port of loading and clearance at the port of the discharge, local logistics to the warehouse of the importer and even open windows for retail.
He said the threat to the freight forwarders in Nigeria is multi-dimensional, internal and external, noting that the many fragmented associations and groups speaking and working across purposes have given room for foreign domination of the business in the country. Pius said the discordance among the freight forwarders is unhealthy for advocacy to save the business from foreign invasion.
Why FG must restrict solid minerals export – MMNL boss (Vanguard)
At Africa Cassava Conference, a humble plant can power trade (ITC News)
Fisheries and aquaculture can grow to US$1bn sector: Prof Jiri (The Sunday Mail)
FISHERIES and aquaculture play a critical role in food security and have the potential to grow into a US$1 billion sector, thereby significantly contributing to local economic growth. These remarks were made by Permanent Secretary in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development Professor Obert Jiri while officially opening the two-day Fisheries and Aquaculture Policy review in Harare on Wednesday.
“Fisheries and aquaculture remain key to Zimbabwe’s economy, providing food security, livelihoods and economic opportunities for many communities. “It is a sector that can grow to a US$1 billion sector, which is an immense contribution towards the achievement of our overall US$10 billion agricultural sector by 2030,” Prof Jiri said.
The policy review seeks to accelerate the alignment of Zimbabwe’s policy to the African Union (AU) and other relevant international frameworks that promote sustainable development and economic growth in the fisheries sector.
The 8th Pan African Forum on Migration (PAFoM-8) takes place on 31st October – 2nd November 2023 in Gaborone. It will, amongst others, contribute to the AU theme of the year 2023 “Acceleration of AfCFTA Implementation” by unpacking the linkages between the AfCFTA, Free Movement of Persons, Migration and Labour Migration across the continent. Special emphasis will be placed on women and men migrant workers, as well as discuss the good examples and mechanisms through which different stakeholders (countries of origin and countries of destination, civil society organizations and social partners) can highlight benefits derived from an integrated economic development for Africa.
The forum aims to, inter alia, provide key recommendations for concrete initiatives that illustrate the nexus between trade and the free movement of people, especially labour, on the continent, and the resultant contribution to continental integration and AfCFTA implementation; advance dialogue to deconstruct barriers towards advancement of Free Movement of people in Africa; and explore digital technological advancement for gathering of accurate data and information to generate critical statistics in contexts of Free Movement, Labour Migration and Migration for development.
Boosting refineries necessary to combat surge in Africa’s energy imports: ARDA exec sec (Oil Review Africa)
African Energy Week (AEW) 2023 hosted a high-level panel discussion analysing trends within the continent’s downstream segment, as African countries seek to ensure optimal exploitation of domestic resources for energy security, affordability and independence
“Fossil fuel demand in Africa will grow by 45% to 50% over the next three decades, hence the need to boost refinery and storage capacity to avoid the continued surge in energy imports which are increasing prices across the continent,” stated Anibor Kragha, executive secretary, African Refiners and Distributors Association (ARDA), in his keynote speech.
While the panel identified a lack of adequate financing as the biggest barrier hindering the growth of Africa’s downstream projects, it served as a platform to showcase best solutions to driving investments within the segment. Kragha emphasised on the role leveraging market-based pricing, the enactment of clear policies and coordination between key sectoral ministries to support investor business plans play in accelerating the flow of investments in the continent’s downstream landscape.
“We have to look at what makes sense from an investment perspective. Not all countries need to have a refinery. We need a tighter and robust intra Africa refinery value chain to ensure intra trading and cooperation between upstream and downstream players. For instance, South Africa, with its four refineries, can be leveraged by the SADC region to refine energy sourced from Namibia and Mozambique for regional energy security,” added Kragha.
Remarks by the First Deputy Managing Director at the Ninth IMF-WB-WTO Trade Research Conference (IMF)
World trade growth is historically low, with no signs of improvement. In fact, it is projected to decline from 5.1 percent in 2022 to 0.9 percent in 2023. Meanwhile, the global trading system is facing several challenges: from geopolitical tensions and fragmentation, to industrial policies, to climate change.
Weak global trade growth is likely to reflect not only the path of global demand, but also growing trade policy uncertainty and rising trade barriers. Last year almost 3,000 trade restrictions were imposed—nearly 3 times the number imposed in 2019. In addition, foreign direct investment is now increasingly driven by geopolitical preference rather than business fundamentals. This points to a shift toward inward- and alliance-oriented policies, which often are ineffective.
Of course, the surge in government intervention is tightly linked to a resurgence in industrial policy. In 2023 alone, the number of industrial policy measures increased nearly sixfold. Emerging markets have also increased their use of industrial policies, although they have relied less on subsidies and more on trade restrictions such as tariffs and export controls. While industrial policies can help address market failures, they have historically been costly and often failed.
Research by the IMF, WTO, and others shows that fragmentation could dramatically impact the world economy, costing up to 7 percent of GDP and possibly more for certain countries.
Senior Officials Meeting paves way for progress on deliverables at MC13 (WTO)
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 their upcoming 13th Ministerial Conference (MC13) early next year. The Director-General said it was clear that negotiators in Geneva now have the political mandate to try and achieve breakthroughs at MC13 on issues such as agriculture and food security, dispute settlement reform, the e-commerce work programme and moratorium, the “second wave” of fisheries subsidies negotiations, and development issues, among others.
Agriculture negotiators discuss new proposals submitted by WTO members (WTO)
WTO agriculture negotiations were enriched by a new stream of members’ submissions on a variety of topics during meetings on 19-20 October. The Chair, Ambassador Alparslan Acarsoy of Türkiye, thanked members for their active engagement and their ongoing efforts to narrow gaps. In total, members discussed six new submissions on the topics of export restrictions, domestic support and food security.
The African Development Bank (AfDB), Inter-American Development Bank (IDB), the Rockefeller Foundation, and the Center for Global Development came together to co-host a high-level meeting on October 13th to discuss the rechanneling of Special Drawing Rights (SDRs) from contributing countries through Multilateral Development Banks (MDBs). The objective is to boost their development and climate resilience lending to countries most in need. The meeting took place on the sidelines of the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group in Marrakech, Morocco.
Participating ministers, senior government officials, and civil society representatives discussed the multiple crises facing developing countries as a result of the COVID-19 pandemic, the war in Ukraine, and the resulting food crisis. The meeting also focused on the challenges countries face in accessing international capital markets in a high inflationary and high interest rate environment. They highlighted the urgent need for additional concessional resources to finance economic recovery, climate change and to give countries the fiscal space to manage debt burdens sustainably.
Hand in Hand Investment Forum: Spotlight on Sahel and Dry Corridor regional initiatives (FAO)
Governments from two critical regions, Central America’s Dry Corridor and Africa’s Sahel, presented dozens of projects aimed at boosting agricultural production and food security in a sustainable and profitable way at the Hand-in-Hand Investment Forum 2023. Participating governments met with traditional donors, multilateral development banks and representatives of the private sector and foundations at the national government-led event, organized by the Food and Agriculture Organization of the United Nations (FAO) and held during the World Food Forum (17-20 October)
While some 31 countries pitched national-priority investable projects in agrifood systems, all of them benefiting from FAO’s specialized technical analysis and investments expertise, considerable attention was given to two regional initiatives involving multiple countries facing similar challenges. The two initiatives generated more than $6 billion in pitches, for around 110 investments and affecting 149 million beneficiaries, ranging from small-scale irrigation networks and water storage facilities to digital soil mapping and measures to boost regional trade.
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Kenya: President Ruto pushes for locally-made clothing (DW)
President William Ruto has announced plans to spearhead an initiative that would ensure all military and police uniforms, as well as other clothing items, are exclusively produced within Kenya. Kenya’s textile companies, cotton farmers, garment workers, small businesses and the public reacted with excitement and optimism. Many expect the initiative to revitalize the country’s struggling textile industry and have positive ripple effects on the overall economy.
Kenya currently relies on textile imports, with over 90% coming from countries such as China, India, Pakistan, Tanzania, and Turkey. But investment and finance expert Caroline Karugu believes there’s no need to import fabrics when Kenya can produce them.
However, the president’s new directive raises questions over whether Kenya can meet most of the local demand for textile products. Beyond army boots and police uniforms, most staples, like elsewhere in the world, come from textile manufacturers, mainly in Southeast Asia. “As much as we would like to buy products made in Kenya, they are not all available here. So, some of the products will have to maybe come from China or India,” consumer Anne Mutiso Mwikali told DW.
Kenya ropes in small traders for wider tax bracket (The East African)
Kenya’s tax agency has gone all in to bring small-scale traders and informal sector workers into the tax bracket to increase ordinary revenues, but possibly deviating from the government’s initial plan of taxing ‘trade’ less and ‘wealth’ more. Since the beginning of this Financial Year, the Kenya Revenue Authority (KRA) has rolled out a series of measures, hired thousands of new employees and entered into deals meant to on-board the informal sector into the tax bracket.
This week, the taxman entered an agreement with the Eastleigh Business District Association, a lobby group for traders in one of Nairobi’s largest informal trading centres, to collaborate in enhancing voluntary tax compliance by its members.
Earlier, at the annual tax summit last week, KRA’s commissioner-general Humphrey Wattanga said the taxman is working on policies that will tap into the “great tax potential” of the informal sector, which is estimated to employ over 80 percent of Kenya’s workforce. Last week, the authority said it will “work with National Treasury to establish policies that will simplify, harmonise and reduce the multiplicity of taxes obligated to the informal sector,” in efforts to improve wilful payment of taxes by sector.
Kenya, Angola to resume direct flights to spur trade (Capital Business)
Kenya and Angola will push for the resumption of direct flights between Nairobi and Luanda as part of their efforts to spur bilateral trade. President William Ruto said Kenya-Angola trade has been on the rise in the past four years. However, he observed that more needs to be done to unlock the underlying potential.
“There is a huge scope for these numbers to go up if we strengthen our interconnection.” Besides flights, the Head of State announced the activation of a visa-free regime to ease the free movement of people. “Angolans coming to Kenya will not require a visa. Angola will equally consider the same for Kenyans,” said President Ruto. This, he added, will facilitate a wider interaction of diverse ideas, resources and businesses.
He was speaking on Saturday at State House, Nairobi, when he held talks with his Angola counterpart João Lourenço. During the event, 11 legal instruments were signed. They include on wildlife and conservation, shipping and maritime, mining, youth affairs, forestry, agriculture, ICT, oil and gas, health, diplomacy and public service.
Uganda Airlines commences direct flight to Lagos, gets Kano Abuja routes (Vanguard)
Uganda Airlines has commenced direct connectivity to Lagos from Entebbe International Airport with three weekly flights to Lagos. Abuja and Kano, have been approved as entry points for the airline by the federal government under the Bilateral Air Services Agreement, BASA, between both nations in line with the Single Africa Air Transport Market, SAATM.
The launch of flight services to Lagos by Uganda’s flag carrier, Uganda Airlines would help to close the gap in the travel needs of travelers from West Africa and East Africa. Speaking shortly after the inaugural flight, Uganda’s High Commissioner to Nigeria, Ambassador Nelson Ocherger stated that the approval by the Nigerian government would open a landscape of business opportunities to both nations.
TPA: Lack of investment leads to Dar Port inefficiencies (Tanzania Daily News)
The Tanzania Ports Authority (TPA) has said the lack of substantial investment at the Dar es Salaam Port is a major cause for inefficiencies, failing to compete with neighbouring ports and hence, operating below the international standards. The TPA Director General, Mr Plasduce Mbossa, made the remarks at the historic signing event of three agreements for the investment and operation of the Dar es Salaam Port between the Tanzanian government and Dubai-based DP World at the State House in Dodoma, on Sunday.
“Despite taking various measures to improve the Dar es Salaam Port efficiencies, the port operations have remained below international standards,” he said. “Many ships remain at the anchorage for a long time… for example, as we speak now, there are about 30 ships waiting at the anchorage, while 11 ships are currently being served at the port.” He said the waiting period for a ship to dock is an average of five days while at Mombasa it is 1.25 days and Durban 1.6 days. The transport costs for domestic cargo is about 6,000 US dollars for a container and these are directly transferred to the final consumer. The transport cost for the same container in Mombasa Port is between 3,500 and 4,000 US dollars only.
He attributed the port’s inefficiencies to the absence of modern Information and Communication (IT) systems that correspond to each other, citing some as insufficient area within and outside the port for cargo storage, few docks for anchorage of ships and lack of modern equipment for loading and unloading the ships, taking into consideration that technology is changing from time to time and also that they need huge investment and operation.
DP World signs 30-year concession to operate Dar es Salaam port in Tanzania (Seatrade Maritime)
Ethiopia’s quest for sea access rattles port custodians Eritrea (The East Africans)
The Ethiopian government is trying to stem a potential diplomatic falling-out with Eritrea, with whom it only restored relations three years ago, after its leader hinted at seeking access to the sea for his country’s economic and geopolitical needs. Prime Minister Abiy Ahmed, in a speech in parliament last Sunday, spoke of seeking access to the sea, which he argued was central to the country’s ambitions and said it needed to be addressed “to prevent future generations from resorting to conflict. This can be achieved through discussions on investment options, shares and leases. However, dismissing it entirely as a topic of conversation is a mistake,” he said, according to the Ethiopian News Agency.
“We are not insisting on Massawa or Assab specifically. What we seek is an accessible gateway. However, it may materialise — be it through purchase, leasing, or any mutual arrangement — that’s our objective,” Ahmed said, referring to the Eritrean port cities, once the country’s key gates to the outside world. Eritrea responded to the speech with a cryptic statement: “Discourses — both actual and presumed — on water, access to the sea, and related topics floated in the recent times are numerous and excessive indeed. The affair has perplexed all concerned observers.”
Afreximbank and Morocco announce $1bn plan to enhance trade and investment in Africa (Trade Finance Global)
The African Export-Import Bank (Afreximbank) has signed a Memorandum of Understanding (MoU) with Morocco’s Government, represented by its Ministry of Economy and Finance. This MoU aims to establish a $1 billion Morocco-Africa Trade and Investment Promotion programme.
Per the MoU’s stipulations, the initiative will serve as a framework for future collaboration in mutually beneficial areas between Afreximbank, Morocco’s Ministry of Economy and Finance, other governmental bodies, and Moroccan businesses. The programme will focus on funding and boosting both intra- and extra-African trade by offering credit, risk mitigation, and trade information and advisory services. Additionally, the programme will support various engagements, missions, information exchanges, and capacity-building efforts.
Gov’t pursues Chinese investments in mining sector (The Business & Financial Times)
The government is seeking to attract Chinese investors to the local mining sector as the Minister of Lands and Natural Resources, Samuel Jinapor, leads a delegation including the private sector to participate in this year’s China Mining Conference and Exhibition, in Tianjin, China. The 25th China Mining Conference and Exhibition, which is slated for 26th to 28th October 2023, is expected to bring together governments, investors, and other industry players from across the world. This year’s event is expected to attract more than 10,000 delegates and 400 exhibitors, in attendance and will be held under the theme “Innovation Promotes High-Quality Development of Mining.”
Ghana Investment and Trade Week Summit opens in Accra (MyJoyOnline)
The three-day Ghana Investment and Trade Week Summit, organized by the Ghana Investment Promotion Centre (GIPC) in partnership with MIE Group, has opened in Accra. The summit commenced with a call to businesses to seize the abundant opportunities offered by the African Continental Free Trade Area (AfCFTA) to propel the continent to be a global economic savior in times of crisis.
In his welcome address, Yofi Grant, the CEO of GIPC, emphasized that this gathering marked a landmark summit that brought together investors, traders, policymakers, and exhibitors, all working toward the economic and political prosperity of Africa. Grant highlighted that intra-trade among African countries has only reached a modest 15 percent annually, with intra-African investments, predominantly from North and Southern African countries, accounting for less than five percent.
Ghana: Tullow’s vision for a brighter African future (The Business & Financial Times)
Africa has the potential to play a leading role in global energy demand over the next few decades, given the right policy clarity and economic stability in the region. This was the major view from Tullow at the just-ended Africa Oil Week 2023 in Cape Town, South Africa. Chief Executive Rahul Dhir, on a panel to discuss global opportunities for Africa’s energy resources, was emphatic about the need for deep collaboration between governments and operators in order for this view to be realised in the short-term.
Recent developments in Africa reflect a renewed interest and substantial investment in energy projects that were previously overlooked due to cost and environmental concerns. According to Reuters, Africa is now considering oil and gas projects worth over US$100billion.
As Chief Executive Rahul Dhir has emphasised: “The upside of Africa’s elevated role in global energy demand is high. However, there is a real and present need for a deeper collaboration between governments and operators on the continent, to reduce perceived risks and make the continent a desired oil and gas destination. Operators like us require assurances of an enabling environment for increased investment and partnerships for shared prosperity”.
Nigeria: Tinubu targets $1tr economy, hopeful of $10b inflow to ease FX crisis (The Guardian Nigeria)
In what looked like unveiling President Bola Tinubu’s government economic blueprint, the Federal Government said it is working to push Nigeria into a $1 trillion-economy in three years, precisely 2026. Not done, President Tinubu projected that the Nigerian economy could become a $4 trillion economy by 2025, which is 12 years away.
The President, who reeled these out at the 29th edition of the yearly Nigerian Economic Summit organised by the Nigerian Economic Summit Group (NESG), in Abuja yesterday, said the focus of his administration is on enduring poverty alleviation programme, food security, economic growth and job creation as well as inclusive growth, security of lives and property and implementation of sound economic policies.
At the same occasion, Minister of Finance and Coordinating Minister of the Economy, Olawale Edun said the Federal Government is anticipating a fresh $10 billion inflow into the Nigerian economy within the next few weeks. “Apart from the supply of foreign exchange through NNPC, increased production, reduced expenditure, from transactions such as forward sales, from our discussions with sovereign wealth funds, that are ready to invest and provide advanced alongside that investment, there is a line of sight of $10 billion worth of foreign exchange in the relatively near future in weeks rather months.”
Limited knowledge and information on aflatoxin by stakeholders along the value chain has been identified as one of the major factors inhibiting aflatoxin prevention and control within the East African Community. The inability by most farmers to easily access appropriate technologies for aflatoxin mitigation and inadequate private sector participation in aflatoxin management are also significant contributing factors to efforts to contain aflatoxin contamination in the region. Low awareness among value chain actors, from the farm to consumers, on the social economic consequences of consuming or trading in aflatoxin contaminated foods and feeds is the other factor that aggravates the aflatoxin menace.
It is estimated that agricultural commodities account for about 65% of intra-regional trade in the EAC. It is further estimated that losses associated with Aflatoxin contamination in Africa have escalated to US$670 million annually.
EAC, EU launch second phase of the market access (People Daily)
The first phase of a European Union (EU) backed market access upgrade programme in East Africa spiked growth of coffee exports from the East Africa Community (EAC) regional block to European markets from €488 million (Sh77.7 billion) in 2018 to €1.1 billion (Sh159.2 billion) in 2022. During that period, avocado exports to the EU market grew from €85.5 million to €112.4 million, says EAC Secretary General Dr Peter Mathuki.
The €40 million (Sh6.4 billion) regional programme funded by the EU is set to unlock the full potential of agribusinesses within the EAC, Dr Mathuki said at the launch of Phase 11 of the EAC – EU programme. The second phase will strengthen EAC’s small businesses through enhanced regional and international trade in close partnership with the East African Business Council, EAC Partner States, business support organizations, and local institutions. Building on the successes of the current success, focus priority sectors will include avocado, cocoa, coffee, essential oils, French beans, gum arabic, horticulture, leather, packaging, spices, and tea – with an emphasis on processing, value addition, diversification, investment, and export linkages.
A Step Forward in Trade Efficiency for COMESA-EAC-SADC Tripartite Free Trade Area (WCO)
In a significant step towards enhancing trade efficiency and promoting economic growth in the COMESA-EAC-SADC Tripartite Free Trade Area (TFTA), the World Customs Organization (WCO), has successfully assisted the Secretariat of the Common Market for Eastern and Southern Africa (COMESA) to update the Rules of Origin (RoO) from the HS 2017 to the HS 2022. This critical development was achieved in a workshop held in Lusaka, Zambia, from October 9 to 11, 2023.
The main objective was to assist the COMESA Secretariat and the TFTA Member/Partner States in aligning the RoO with the HS 2022 edition to reduce the risk of misclassifying goods. The draft updated TFTA RoO for HS 2022 shall be submitted to the TFTA Technical Working Group on Rules of Origin for validation.
Framing the technical assistance under the perspective of sustainability, the RoO Africa Programme invited experts from the COMESA members states to contribute to the alignment exercise and build their competency, so as to be equipped to conduct the same exercise for the next HS editions.
Ghana leads peers with strong AfCFTA framework (The Business & Financial Times)
Ghana currently has a regulatory framework that broadly aligns with the goal of enhanced intra-African trade being espoused by the African Continental Free Trade Area (AfCFTA), a new report has shown. The ‘Situational Analysis of Ghana’s AfCFTA Preparedness’ – jointly published by Ishmael Yamson & Associates in collaboration with Sam Okudzeto & Associates – showed that the nation is ahead of many of its peers regarding the broad framework for implementing the agreement.
“Ghana has a robust legal and regulatory framework for trade. Government has also developed, and to some extent implemented, various policies and initiatives to promote trade…,” portions of the report read. The report, which provided a review of the legal, policy and regulatory framework for implementing AfCFTA in Ghana, however highlighted areas for improvement across trade in goods as well as services, labour, investment, dispute resolution and competition.
Opportunities, considerations for manufacturers in terms of AfCFTA (Engineering News)
There are considerable opportunities that the continent’s manufacturers can leverage from the African Continental Free Trade Area (AfCFTA); however, there are a number of considerations and areas to address if the full benefits of this are to be realised. This was highlighted by speakers on October 24, during a panel discussion as part of the Manufacturing Indaba that is being held this week in Johannesburg.
CFO Namibia principal founder Ally Angula said research has shown that the countries in Africa are trading very basic commodities among themselves. She averred that the AfCFTA would challenge manufacturers to diversify and broaden this scope into more refined products, and to then enter the trade ladder. She also called for rectifying critical infrastructure like ports, and for those responsible for this to liaise with manufacturers to ensure that what they need is considered in planning. She mentioned a major challenge to doing business across Africa as moving money across the continent being very difficult. However, this also presents an opportunity in a growing market.
African Regional Economic Communities and the AfCFTA Secretariat discuss avenues for better management of the HS and Origin in Africa (World Customs Organization)
The African Regional Economic Communities (RECs) and the AfCFTA Secretariat convened a consultation to exchange on challenges and opportunities towards efficient and co-ordinated implementation of the Harmonized System (HS) and rules of origin in Africa. The consultation took place on 3 October 2023 in Plaigne Magnien, Mauritius, at the margins of the EU-WCO Programmes for Harmonized System and Rules of Origin in Africa annual steering committee meetings.
The deliberations on the HS looked at the lessons learnt from the migration to the 2017 and 2022 version of the HS, the RECs’ role in streamlining the application of new versions, and discussed opportunities and prospects for a successful implementation of the HS 2028 across the continent. The experts also exchanged on the importance of advance rulings and targeted competency development, as well as the urgency to update the AfCFTA tariff concessions from the HS2017 to the 2022 version of the HS.
The discussions around origin tackled the overlapping rules of origin in Africa, the processes for certification and verification of origin, and the need to streamline the RoO for better regional integration and seamless trade facilitation. The experts also exchanged and presented recommendations regarding e-certificate and self-certification of origin, as well as the necessity to build competencies and solid pool of experts in Africa.
Investment survey ranks Uganda among top ten sub-Saharan prospects (Uganda Business News)
Uganda is among the top ten countries in sub-Saharan Africa where companies are looking to invest or expand over the next few years, according to a KPMG report released Friday. The country was selected by ten per cent of senior executives from companies that have invested in sub-Saharan Africa (SSA) over the past four years and anticipate further acquisitions or expansion of current operations in the next two years. South Africa ranked first as the leading prospective investment destination, selected by half of the respondents, trailed by Nigeria at 30 per cent and Tanzania at 15 per cent. Ghana, Kenya, and Mauritius each received 14 per cent.
South Africa and Nigeria offer compelling investment opportunities due to their large economies offering significant market opportunities and, in the case of Nigeria, a huge consumer base of 220 million people. In addition, both countries have abundant natural resources – Nigeria has crude oil, while South Africa has diverse mineral deposits. The report highlights that both countries act as regional economic hubs, facilitating access to neighbouring markets and regional integration efforts.
Afreximbank announces the historic issuance of the first-ever multi-border transit bond. The US$10 million transit bond issued in favour of Innovate General Insurance (IGI) of Zambia is expected to provide counter guarantees and boost IGI’s capacity to issue bonds to Clearing and Forwarding Agents in Zambia. The Afreximbank African Collaborative Transit Guarantee Scheme (AATGS) was designed by the Bank to promote the seamless movement of goods across multiple national customs borders, as a means of improving efficiency and shortening the time for border clearances.
The US$1 billion Collaborative Guarantee Scheme is expected to accelerate cross-border trade in Africa and save the continent about US$300 million annually in transit costs. As a Pan-African Multilateral Financial Institution, Afreximbank is able to provide capacity to national sureties to enable them to issue bonds at affordable rates and facilitate intra-African trade under the African Continental Free Trade Agreement (AfCFTA).
Being one of the AfCFTA-flagship initiatives, the Collaborative Guarantee Scheme is being implemented in partnership with the AfCFTA Secretariat as well as Regional Economic Communities. The facility to IGI, which is expected to facilitate the transportation of goods across its almost 5,700 km of borders with its eight neighbouring countries, is a realisation of the broader partnership between Afreximbank and COMESA Council of Regional Customs Transit Guarantee (RCTG-Council)
The International Energy Agency projects that manufacturers of clean energy technologies will need forty times more lithium, twenty-five times more graphite, and about twenty times more nickel and cobalt in 2040 than in 2020. To exploit this opportunity, in 2021 the government of the Democratic Republic of Congo and the United nations Economic Commission for Africa (UNECA) came together with the African Export-Import Bank (Afreximbank), the African Development Bank, Africa Finance Corporation and other entities to identify ways to channel investments to increase Africa’s share of the value chain for lithium-ion batteries, electric vehicles and clean energy.
The DRC has 51% of the world’s cobalt reserves as well as huge hydroelectric power potential. The country is thus uniquely positioned to become a low-cost and low-emissions producer of lithium-ion battery precursor materials and cells, says an African Development Bank report titled ‘Strengthening Africa’s Role in the Battery and Electric Vehicle Value Chain’. Further, DRC and Zambia are Africa’s largest producers of copper, an important component in wiring and motors.
A BloombergNEF study was commissioned to look into the feasibility of setting up Special Economic Zones to manufacture battery precursors in DRC and Zambia. It confirmed the project was technically feasible and financially viable, with an estimated total cost of $2.7 billion.
Global devt boat is leaking, consequences will be devastating, warns Adesina (Newsdiaryonline)
“The global development boat is leaking and the consequences will be devastating, unless we seal the leaking areas”, warns the African Development Bank President, Dr Akinwumi Adesina. Adesina made this known in a statement during the 2023 Kofi Annan Eminent Speakers’ Lecture. He said the challenges of our world today, from the COVID -19 pandemic, climate change, rising debt, food insecurity, and conflicts, were keeping the lid on development globally.
He said at the top of the leakage was climate change which posed existential risks for the world. “We must do all we can to keep global warming to no more than 1.5 degree Celsius. We need innovations to power the world better with renewable energy. “There is too much hunger in the world. It is not acceptable that over 2.3 billion people in the world go hungry. God did not create stomachs to go empty. “He created them to be filled. There must be a hunger-free world,” he said
According to Adesina, the inability to cope with global health pandemics. The Covid-19 pandemic has taught us how important it is to have global pandemic preparedness. He said it had also taught us to ensure no one was left behind in access to affordable health care. “After all, all lives matter, for the rich and poor.”
More African trade news
The AfCFTA presents unique collaboration opportunities - Chapman (Namibia Economist)
Marrakech to host 2023 Africa Investment Forum Market Days Event from 8th to 10th of November (AETOSWire)
Is debt restructuring the magic wand for Africa’s problems? (The East African)
Moving up the value chain: financing sustainable development in Africa (African Law and Business)
Africa spotlight, How can we grow risk distributions and syndications in trade finance? (Trade Finance Global)
Trading losses: How ‘misinvoicing’ hinders trade growth in Africa (Businessday Nigeria)
Egypt announces new round of Gerd tripartite negotiations (The East African)
Spotlight on the Aquaculture Africa 2023 (Zambia) as Conference Program is Announced (World Aquaculture Society)
Global Port Infrastructure Sufficiency Index: Results of the pilot phase (UNCTAD)
Maritime transport handles over 80% of global merchandise volume, making ports essential to global trade and economy. They’ve evolved into multifunctional hubs, fostering economic growth in their respective regions. In 2022, over 900 ports were servicing global liner shipping networks, handling 171 million n 20-foot equivalent units (TEU) of containerized trade and generating over 800 million TEU of world containerized port traffic.
Given ports’ pivotal role in global trade, monitoring their performance is vital for trade efficiency, cost-effectiveness, and sustainability.
The 2030 Agenda for Sustainable Development, Sustainable Development Goals, and the 2015 Paris Climate Agreement have also emphasized the need for all economic sectors, including maritime transport to monitor and measure performance and track progress towards the achievement of relevant economic, social, and environmental targets.
Surge of formal acceptances of Agreement on Fisheries Subsidies - entry into force closer (WTO)
Seven WTO members deposited their instruments of acceptance of the Agreement on Fisheries Subsidies on 23 October, propelling the much-anticipated entry into force of the historic agreement for ocean sustainability closer to realization. High-level officials of Albania, Australia, Botswana, Cuba, Côte d’Ivoire, the Republic of Korea, and Saint Lucia presented their instruments of acceptance to Director-General Ngozi Okonjo-Iweala in a ceremony as part of the two-day Senior Officials Meeting at the WTO’s headquarters in Geneva.
The latest instruments of acceptance bring the total number of WTO members that have formally accepted the Agreement to 51. This is 46% of what is needed for the Agreement to come into effect (two-thirds of the WTO membership). “Each formal acceptance of the Agreement on Fisheries Subsidies marks an important step towards its entry into force, which is so important for ocean health, for the livelihoods and food security of millions of people, and for the WTO,” DG Okonjo-Iweala said.
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SACU receipts account for major source of revenue - NamRA (Namibia Economist)
The Namibia Revenue Agency (NamRA) on Thursday said contributions from the Southern African Customs Union (SACU) were the major contributor to meeting 55.2% of its set revenue collection target for the year financial year 2023/2024. A statement released by NamRA’s chief of strategic communication and support engagement, Stephen Ndorokaze said the revenue collection agency collected N$37.4 billion by 30 September.
“The mid-year revenue collection is over N$9 billion better than the N$28.3, generated at the same time last year, which in turn was an improvement from 26 billion Namibia dollars at the end of September 2021,” Ndorokaze said. “The Minister of Finance and Public Enterprises, Iipumbu Shiimi set the annual revenue target for the financial year 2023/4 at N$67.8 billion, up from the adjusted N$53.4 billion for the year 2022/3,” Ndorokaze said.
Private sector implored to explore new market opportunities (Windhoek Observer)
Industrialisation and Trade Deputy Minister, Verna Sinimbo, has implored businesses, particularly in the private sector to explore new market opportunities like agriculture and invest in the production of goods and services that can be competitively traded within the African Continental Free Trade Area (AfCTFA) framework.
She said the private sector should embrace innovation and technology to enhance productivity and competitiveness, adding that all these activities can only be unlocked once appropriate funding mechanisms are availed. She reiterated that there have been deliberate efforts made to ease access to finance. Sinimbo made this remark at the Bank Windhoek Online Agriculture Series.
SA urged to adopt innovation as it confronts big waste management problem (Engineering News)
At the heart of South Africa’s environmental discussion is the pressing need to embrace a circular economy, but such a shift demands practical collaboration, inventive thinking and a resolute commitment to sustainable practices. During a recent Creamer Media-hosted webinar on waste management and the circular economy, the Institute of Waste Management of Southern Africa’s Chris Whyte, who facilitated the discussion, stressed that South Africa has “a significant problem with waste management”.
The issue is multifaceted in nature and will involve the management of various waste streams, including electronic waste (e-waste) laden with precious metals and plastics, besides others. “It’s essential to understand the core principles driving the circular economy. It’s about eliminating waste and pollution through thoughtful design, and it emphasises the need to circulate products and materials, maximising their value and life span,” Whyte added.
Exporters challenged to think outside the box (The Herald)
Exporters should think outside the box to bust illegal economic sanctions for increased and sustainable exports that will improve the country’s economic fortunes, President Mnangagwa has said. This comes as the country and the region will next Wednesday, October 25, commemorate Anti-Sanctions Day, which was set aside by SADC to lobby the international community to rally behind the unconditional call for lifting sanctions on Zimbabwe.
Noting that the country surpassed its export growth target of US$7 billion by 2023 as outlined in the National Export Strategy, President Mnangagwa said a culture of hard work by his administration has been key. Addressing the 11th edition of the ZimTrade Annual Exporters’ Conference in Harare yesterday, President Mnangagwa said it is critically important to strengthen collaboration and partnerships for tapping into global export trends in line with the conference’s theme, “Exporting into the Future”.
“However, due to our own unique realities, primarily that we are a country under sanctions, we must always think outside the box and continuously guarantee competitiveness. “Our capacity to create and adopt a robust production, productivity and export-oriented ecosystem must urgently be enhanced,” he said. “As we plan to grow our exports, let us remain mindful of our collective national resolve to improve the quality of life of our people and attain Vision 2030.”
Nigeria must boost non-oil export earnings to save Naira, says Aganga (Vanguard)
Against the backdrop of the continuous depreciation of the Naira following the new foreign exchange (forex) market policy, a former Minister of Finance, Mr Olusegun Aganga, has said that the only way to strengthen the nation’s currency is to increase productivity and capacity, and become export-oriented. Aganga, also a former Minister of Industry, Trade and Investment, stated this yesterday, in Lagos, while delivering the 3rd Adeola Odutola Lecture organized by the Manufacturers Association of Nigeria (MAN) as part of its 51st Annual General Meeting.
He added that for Nigeria to achieve 15 percent export to gross domestic product (GDP) ratio, it needs to earn about $72 billion from non-oil exports. “Nigeria’s export to GDP ratio is also very low when compared to Malaysia 76 percent, South Africa 31 percent, China 24 percent and Brazil 12 percent. Nigeria will need to earn about $72 billion from non-oil exports to achieve 15 percent.”
EU, ECOWAS Sign €212.5m Agreements on Trade, Food Security, Energy (Arise News)
The European Union and the Economic Community of West African States (ECOWAS) on Thursday signed seven agreements worth €212.4 million on promotion of trade and regional integration, energy interconnectivity and renewable energy, affordable and clean energy, sustainable food system, food security as well as migration.
Noting that ECOWAS currently operates in a politically challenging context, European Commissioner for International Partnerships, Jutta Urpilainen stated that the agreements have a central role of stabilizing the region through promotion of democracy, rule of law and economic cooperation.
The third agreement, which was in the area of trade in services in Sub-Saharan Africa, has €l1.5 million. It was to aid increasing the liberalization of services and exports for selected services sectors with the aim to increase intra-regional, continental and bilateral trade in services, enabling higher integration into regional and global value chains.
ICT experts push for 5G adoption in Africa to drive economic growth (Xinhua)
Information and communications technology (ICT) experts attending the Mobile World Congress 2023 (MWC2023) in the Rwandan capital of Kigali, held on Oct. 17-19, have said African countries need to strengthen and speed up efforts in the deployment of 5G networks across the continent to revolutionize industries, enhance connectivity, and drive economic growth. “The rollout and deployment of 5G is expected to contribute to the growth of Africa by creating jobs and improving incomes. The ecosystem surrounding the 5G economy is much more powerful than any other technology that preceded it in the realm of digital communications,” Amir Abdelazim, a partner expert with Detecon Consulting, said in an interview with Xinhua on the sidelines of MWC2023 on Thursday.
He added that African countries should put in significant efforts to ensure the rapid deployment of 5G networks, unlocking unprecedented opportunities for innovation and economic development on the continent. “It is remarkable to see how startups in Africa are working to find innovative solutions that can catalyze the rollout of 5G.”
Türkiye boosting trade, economic ties with Africa (Hürriyet Daily News)
Türkiye is “strongly implementing” its strategy for developing commercial and trade ties with Africa, Trade Minister Ömer Bolat has said, noting that the trade volume between Türkiye and the continent has risen significantly over the past two decades. Türkiye aimed to strengthen its ties with the continent in a balanced way under its “Strategy for the Development of Trade and Economic Relations with African Countries,” which was launched in 2023, Bolat noted.
The trade volume between Türkiye and Africa climbed from only $5.4 billion to $40.7 billion at the end of 2022, said the minister in a speech he delivered at the Türkiye-Africa Business and Economic Forum in Istanbul. “Over the course of the past 20 years, our trade volume with the African continent has increased 7.5 times, while it had grown more than 11 times with the Sub-Saharan region.”
AfDB Calls for More Private-sector financing to Hasten Green Transition (ENA)
Mobilizing resources from the private sector will be key to bridging the financing gap that has undermined Africa’s capacity to tame the escalating climate crisis, senior officials from the African Development Bank (AfDB) said. The director-general for the East Africa Region at the AfDB, Nnenna Nwabufo, stressed that the continent should leverage capital and technology from indigenous businesses to boost green financing amid shrinking external support.
Our level of economic development has made it difficult to accelerate climate action and that is why we need innovative ways to increase climate financing,” she said at a regional civil society forum convened by the AfDB in Nairobi, Kenya, according to Xinhua. Nwabufo said that Africa’s private sector deserves some fiscal and regulatory incentives to boost its contribution to green financing.
According to the AfDB, African countries should mobilize 213 billion USD annually from the private sector to bridge the climate financing gap by 2030, given the strain on public finances.
The Green Revolution is a warning, not a blueprint for feeding a hungry planet (The Conversation)
Africa needs an energy transition that reflects its reality (Engineering News)
Africa is largely transitioning ”from nothing”, says South Sudan Petroleum Minister Puot Kang Chol. Speaking on Africa’s agenda for the forthcoming COP28 at the African Energy Week held in Cape Town this week, Chol said to “transition means to move – we need to move to energy first before can talk about an energy transition. We need reliable, affordable and accessible energy, no matter where it comes from.” “Our responsibility is to make sure there is food on the table – it is a luxury to say how this food must be cooked.”
Chol also noted that Africa, which still had 600-million people without access to electricity out of 1.3-billion, and rising rapidly – needed a global fair, just and sustainable transition that reflected the continent’s realities. He said developed countries seeking a cut in emissions should not tell Africa what to do, but should rather ask what African countries could potentially do to contribute to a cleaner environment.
China ramps up yuan internationalisation under Belt and Road Initiative (ZAWYA)
China is using loans agreed through its Belt and Road Initiative (BRI) to promote the yuan internationally, having already boosted the yuan’s share of global payments to record levels. During the Belt and Road Forum in Beijing that ended on Wednesday, China’s policy banks signed a series of yuan-denominated loan contracts with foreign lenders.
Many of the 130 countries that attended the forum belonged to the Global South, while most Western nations stayed away, and the presence of Russia’s President Vladimir Putin lent support to Chinese President Xi Jinping’s ambition for a new, multi-polar world order. “You can see that the countries that are basically using the RMB for trade settlements are mostly countries that have visited Beijing or have come up with strategic agreements with Beijing, Russia being the most obvious one,” said Alicia Garcia Herrero, Asia Pacific chief economist at Natixis.
The BRI at 10, some hits, many misses (Observer Research Foundation)
Chinese entrepreneurs in bid to support women exporters (Monitor)
World Investment Forum 2023 ends with strong call for greater private and public investment (UNCTAD)
UNCTAD’s 8th World Investment Forum came to a close on 20 October with a powerful call to public and private investors to play a pivotal role in reshaping the world economy, and seize the emerging opportunities offered by the energy transition, transformation of the agrifood and health sectors and the changing solutions for sustainable development.
Held against the backdrop of a politically fragmented global economy, the forum addressed the profound impact on trade and investment, with foreign direct investment experiencing a continued downturn as data from the first half of 2023 highlighted. UNCTAD Deputy Secretary-General Pedro Manuel Moreno said the downturn “is of much concern as less investment means less economic growth and fewer means to achieve the Sustainable Development Goals – the SDGs.”
Marking International Day, Secretary-General Stresses ‘In Our World of Plenty, Poverty Should Have No Home’, Calls for Renewed Commitment to Achieve SDGs (United Nations)
As we mark the International Day for the Eradication of Poverty, nearly 700 million people are barely scraping by, living on less than $2.15 per day. Over a billion people are deprived of basic needs like food, water, health care and education. Billions more lack sanitation and access to energy, jobs, housing and social safety nets. This is compounded by an outdated, dysfunctional and unfair global financial system that hinders developing countries from investing in alleviating poverty and achieving the SDGs. At current rates, almost 500 million people will still be living in extreme poverty in 2030. This is unacceptable
Ending poverty and ensuring dignity for all (UN-DESA)
The second edition of the Science and Innovation Forum, a key constituent of the annual flagship World Food Forum, closed here on Friday after three days of discussions and proposals on how technology can help agrifood systems deal with the climate crisis. Participants were also presented with the Action Plan 2022–2025 for the implementation of the FAO Science and Innovation Strategy, which provides a common framework for the agency’s action at country, sub-regional, regional and global levels.
In summing up the outcome of the three-day forum, FAO Chief Scientist Ismahane Elouafi offered the following takeaways: Our agrifood systems are facing unprecedented challenges due to the adverse effects of climate change. Science, technology and innovation are seen as the drivers of agrifood system transformation. Integrated approaches are preferable to “silver bullets.” Cross-sector collaborations and strong partnerships play a key role in the transformation of agrifood systems. There’s a need to embrace inclusivity and equitable partnerships and engage youth, women and Indigenous Peoples in shaping the future of agrifood systems. The forum demonstrated that climate resilience, adaption and mitigation cannot be achieved without science and innovation. Participants heard about the latest advancements in climate science regarding the assessment of loss and damage, as well as the potential of the global bioeconomy, which necessitates harmonizing and coordinating both national and international policies. Participants discussed the need to bolster local knowledge networks and research institutions.
Developed countries hold up negotiations on Loss and Damage Fund as stalemate on location of the Fund undermines trust (Climate Action Network)
Negotiations by countries at the fourth and final meeting of the UN Transitional Committee on Loss and Damage here today in Aswan, Egypt, are deadlocked over key differences. Countries remain divergent on fundamental issues to operationalize the Loss and Damage fund. These include issues around location, governance arrangements of the fund, sources of funding and eligibility issues, among others.
Developed countries, led by the United States, have insisted that the new Loss and Damage Fund should be set up under the World Bank as a hosted financial intermediary fund (FIF). Under such an arrangement, the World Bank would set up the Secretariat and provide Secretariat services for the new fund against a fee, following the conclusion of a negotiated agreement.
Ambassador Pedro L. Pedroso Cuesta, Chair of the Group of the 77 and China, expressed concerns about the inability of a fund under the World Bank to provide legal independence, legal personality, accountability to the Conference of Parties (COP) and CMA, and respond with speed to emergency events.
Small islands struggle to get help from the Green Climate Fund (Climate Home News)
Government officials from small island developing states (Sids) have said they find it difficult to get money from the Green Climate Fund (GCF) for projects to help them adapt to climate change. The GCF was set up in 2010 to distribute money from rich countries to poorer ones to help them cut emissions and adapt to climate change. The fund is supposed to pay particular attention to the needs of small islands as well as the world’s poorest countries (LDCs) and African countries.
Small island officials told the authors of a new ODI report that getting money from the GCF was preferable to getting it from other sources like the World Bank, International Monetary Fund or the private sector.
But, they said that GCF money was handed out too slowly, the process of applying is too difficult for nations with small civil services and a number of requirements discriminate against smaller nations.
Quick links
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The 2023 SDG Summit: Achievements, Challenges, and the Role of Democracy
Macao, China formally accepts Agreement on Fisheries Subsidies
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Majority of independent poultry, egg producers unaffected by bird flu (SAnews)
Cabinet has noted that the majority of independent poultry and egg producers have not been affected by avian flu as several South African farmers work around the clock to curb the outbreak. This is according to the Minister in the Presidency, Khumbudzo Ntshavheni, who said they were updated on containment measures to limit the spread and impact of avian influenza. The outbreak, according to the Minster, has “severely” affected the economy and the poultry sector. “The Minister of Agriculture, Land Reform and Rural Development Thoko Didiza, has met with retailers and the South African Poultry Association to discuss possible solutions in the short and the medium term to increase egg and chicken supply,” said Ntshavheni.
Competition, collaboration needed for an efficient logistics network in South Africa (Engineering News)
Competition is important to create efficiencies in the logistics and transport network, but collaboration is similarly necessary to ensure that all the public and private sector role-players can fulfill their roles in the recovery and improvement of South Africa’s underperforming logistics systems. Transportation experts during the ‘How to deliver socioeconomic development through a stronger transport system’ webinar, hosted by Creamer Media on October 18, emphasised that transportation and logistics were essentially about the economy and stressed that the design of the network must suit the needs of the users and communities.
“There is a clear need to bring parties together and a need for all parties to understand the reality of the costs of the crisis and the costs of the recovery plans that are being put forward, as well as their impact on government budgets,” said accounting, auditing and advisory company BDO advisory services director Christelle Grohmann, who moderated the discussion.
South Africa has a very open trade economy and depends on exports and imports for 60% of its gross domestic product. Further, 95% of all trade is in goods and products, which must be transported, highlighted industry organisation Minerals Council South Africa senior economist Henk Langehoven.
“In terms of local production, it is about the size of the market for products going into the rail network and ports. A perennial problem for South Africa is that the local market is too small to support the economies of scale required for local producers to compete with other suppliers.
Uganda exported commodities worth Shs2.5 trillion in August (Monitor)
The Ministry of Finance, Planning and Economic Development Uganda exported merchandise worth $669.88 million (about Shs2.5 trillion) during August 2023, which represented a 17.6 per cent increase from $569.78 million (Shs2.14 trillion) in July 2023. The Ministry of Finance said in its performance of economy report for the month of September released on October 17 that this was mainly on account of increased export earnings mainly from gold and coffee during that period.
The report shows that coffee export receipts during August 2023 amounted to $ 121.64 million (Shs457 billion). This is the highest ever amount received from coffee exports in a single month. This represents a 15.9 per cent increase compared to the $104.99 million (Shs395 billion) receipts for July.
“This increase was partly on account of the good crop harvest in the South-Western region and good prices on the global market which prompted exporters to release their stock,” the Ministry of Finance said.
Uganda achieves record coffee export revenues, generates $940.3 million (The Independent Uganda)
Commissioner Urpilainen and the ECOWAS President Touray launch a major package to stabilise the region and drive West African socio-economic development (European Commission)
Today, European Commissioner for International Partnerships Jutta Urpilainen, met the ECOWAS Commission President Omar Alieu Touray, during her visit to Abuja, Nigeria. She was also accompanied by European Commissioner for Energy, Kadri Simson.
Commissioner Urpilainen said: “The EU is a long-term supporter of regional integration, which produces prosperity through added value. Currently, ECOWAS operates in politically challenging context. It has a central role in stabilising West Africa by promoting democracy, rule of law and economic cooperation. The EU supports its work and regional leadership. Today, I was happy to sign financing agreements worth over €210 million contributing to ECOWAS programmes. Many of these actions align with the objectives of the EU’s positive and sustainable Global Gateway investment strategy.”
ECOWAS President Touray said: “We welcome the visit of the EU Delegation led by H.E. Ms Jutta Urpilainen, the European Commissioner for International Partnerships, which aims at strengthening the ECOWAS-EU Cooperation. This strength of our equal partnership is being reflected today with the signing of 7 new financial agreements covering the areas of trade, migration, energy, and agriculture under within the context of the Team Europe Global Strategy and in line with ECOWAS 4x4 Strategic objectives and ECOWAS Vision 2050.
AfCFTA and AIDA implementation at helm of discussions in Kigali, Rwanda (AUDA-NEPAD)
“As we draw this session to a close, I want to emphasize the unwavering commitment of AUDA-NEPAD to the Impact Assessment Study. We are fully aware of the extended mandate bestowed upon us and are prepared to collaborate closely with all stakeholders. Our collective efforts are aimed at fulfilling the vision set forth by our Heads of State and Governments in Niamey last year. We are committed to transforming challenges into opportunities and making significant strides towards our shared goals,” CEO of AUDA-NEPAD, Ms Nardos Bekele-Thomas.
A declaration adopted during the Seventeenth Extraordinary Session of the Assembly of the African Union on Industrialization and Economic Diversification was made to undertake country impact assessments on the implementation of Accelerated Industrial Development of Africa (AIDA) and the AfCFTA. The impact assessment is an essential tool for policy formulation and management. It is also a vital instrument for channelling stakeholder engagement and communicating the ramifications of policy changes, which Member States need to consider in implementing AIDA and AfCFTA within their national development plans.
Gambia-Senegal Economic, Trade forum set for October 26th (The Point)
The two-day convergence, is aimed at not only promoting economic and trade ties between the two countries, but it is also meant to create a platform to showcase the bond and cultural ties between the two countries. Already, this historic event has the blessing of the two Heads of State of the Republics of The Gambia and Senegal, Excellencies Adama Barrow and Macky Sall respectively.
This economic, trade and investment forum is also designed to provide an opportunity to boost investment opportunities and for Gambian entrepreneurs to access Senegalese market under special bilateral arrangements. This, according to organisers, would greatly help in promoting other trade frameworks within the framework of ECOWAS and the African Continental Free Trade Area (AfCFTA).
Africa must rethink natural resources management to avoid adverse socio-economic consequences (AfDB)
Africa needs to rethink how it manages its natural resources to avoid adverse socio-economic consequences that could hamper sustainable development on the continent, experts said at a recent webinar organised by the African Development Bank. The call came ahead of the 2023 United Nations Conference on Climate Change scheduled for November 30 to December 12 in Dubai, United Arab Emirates. The global conference (COP28) presents a milestone moment when the world will evaluate its progress on the Paris Agreement.
Merlyn Van Voore, Head of the International Resource Panel Secretariat in Geneva, Switzerland, said the world is grappling with the lack of appropriate tools and framework to ensure sustainable management of natural resources. “There are overlaps between managing natural resources and what it means regarding climate and the sustainable development agenda,” she said. She said the manufacture of electronics demanded attention. For instance, mobile phones at the end-of-life stage require the involvement of several actors, including manufacturers, extractives workers and companies, end users, and network providers, to manage the recycling of used phones.
Citing the African Development Bank’s Africa Economic Outlook 2023 report, Ushie said natural resources, including renewables and ecosystem services, generate around 62% of Africa’s GDP. “Nature is providing essential goods and vital services, and these are not just economic values but ecological, biophysical and environmental values as well. Without fully appreciating these services, we tend to underestimate the value of natural capital,” Ushie said.
AfCFTA implementation must align with human rights — Vice-President Bawumia (Graphic)
The Vice-President, Alhaji Dr Mahamudu Bawumia, has said the African Continental Free Trade and Area (AfCFTA) must be implemented using a human rights-based approach. He has, to this end, asked that as the continent vigorously pursued the AfCFTA agenda, it must be mindful of its businesses and human rights obligations.
“Human rights due diligence must be at the centre of the business pursuit and where human rights are likely to be violated, we must put pragmatic and workable mitigative measures in place to address them,” he said. Dr Bawumia said this at the opening of the 14th Biennial Conference of the Network of African National Human Rights Institutions (NANHRI) in Accra yesterday.
Summit discusses future of grain trade in Africa (KBC)
The culmination of the recently held 10th Annual African Grain Trade Summit has sparked a new conversation about the need for influencing policy to accommodate women and young upcoming start-ups in the evolving landscape of food including grain trade in Eastern Africa.
This is after a presentation made by Dr. Roselyn Marandu-Kareithi, Jasiri’s Country Lead, Kenya, and a subsequent panel discussion which unpacked an analytical framework that could reshape the way we think about entrepreneurship and ecosystem collaboration to expand cross-border grain trade in the region.
Speaking on the use of policies private investment, David Kamau, the Managing Director of the Fortified Whole Grain Alliance (FWGA) spoke of the need to amend policies to incentivize financing. “Policy needs to make investment attractive, be it donor, financial service providers or individual oriented,” he said. “There is also need for affordable and available finance for entrepreneurs, including early-stage start-ups, and these should be involved in the discussion on how investment should be shaped.”
UK hosts West and Central Africa trade, investment forum (ZAWYA)
Senior government ministers, leading business executives and investors from seven African nations will join UK leaders at the second UK-Francophone West and Central Africa Trade and Investment Forum (WCAF) taking place in London.
Organised by UK Export Finance (UKEF), the UK’s export credit agency, and DMA Invest, the Forum brings together prominent representatives from Benin, Cameroon, Cote d’Ivoire, the Democratic Republic of Congo, Guinea, Senegal and Togo to discuss new trade and investment opportunities with their UK counterparts that will benefit British businesses.
The trade and investment meeting showcases the UK’s efforts to open up new export and investment opportunities for businesses, International Trade Minister Nigel Huddleston said in the statement. “West and Central Africa is a huge investment opportunity for the UK,” he said. “The Francophone markets have a clear vision for delivering economic growth and prosperity, and the UK is ready to support those countries by building long-term, modern partnerships that are mutually beneficial.”
Facilitator of e-commerce work programme seeks members’ views on way forward (WTO)
In the first of a series of meetings to be held in the lead up to the 13th Ministerial Conference (MC13), Ambassador Usha Dwarka-Canabady of Mauritius, the facilitator of the Work Programme on Electronic Commerce, reported at a dedicated session on 18 October on her consultations with WTO members on the possible outcome at MC13 and heard members’ views on how to proceed in the remaining months, including on the moratorium on the imposition of customs duties on e-commerce.
Guterres: Turn ‘infrastructure emergency’ into opportunity, but also protect nature (UN News)
Although infrastructure “is the foundation of everyday life for people and economies”, Mr. Guterres recalled that billions in the developing world still lack access to basics such as water and sanitation, electricity, schools, hospitals, and modern roads, bridges, tunnels and harbours.
This “infrastructure crisis” is occurring as people worldwide face soaring costs of living, rising inequalities and the impacts of climate change, and as progress towards sustainable development and climate action “is slipping into reverse”. He urged leaders to “turn the infrastructure emergency into the infrastructure opportunity”.
“The Belt and Road Initiative recognizes that we have a historic opportunity to build modern, green cities, communities and transportation and power systems that place resilience and sustainability at the heart,” he said, adding that it can make valuable contributions in two key areas of action.
Egypt aims to be regional hub for ‘Belt and Road’ initiative: Madbouly (ZAWYA)
Prime Minister Mostafa Madbouly represented President Abdel Fattah Al-Sisi Wednesday, in the third session of the “Belt and Road Forum for International Cooperation” in Beijing. He took part in a high-level session titled “Connecting in an Open World Economy.”
In his speech, the Prime Minister said that Egypt and China are two friendly countries that have had historical ties since ancient times. He said that the Silk Road was the bridge that linked Asia and Africa and that the revival of that important corridor through the “Belt and Road” initiative is an important development that enhances the cooperation between the various countries of the initiative. He said that this would benefit the people of both countries and the world, and encourage cooperation to achieve development and progress for all.
Madbouly added: “Our relations with China have evolved during the past ten years. They reached the level of strategic partnership in 2014 and we launched the first executive program of that partnership in 2016. He said that Egypt’s participation in the third session of the “Belt and Road Forum for International Cooperation” stems from the Egyptian state’s interest in the Belt and Road initiative launched by the Chinese President in 2013. He said that Egypt was among the first countries to join it because it aligns with the Egyptian priorities within the framework of Egypt’s 2030 vision for sustainable development, especially regarding the improvement of infrastructure in transportation, energy, and other fields.”
Reading 10 years of BRI from an African perspective (Observer Research Foundation)
Agrifood sector must be a priority for global foreign direct investment (UNCTAD)
Ministers of investment and enterprise participating in UNCTAD’s 8th World Investment Forum identified the agrifood sector as a top priority for global investment. They emphasized its pivotal role in addressing a $4 trillion annual investment gap in developing countries that needs to be bridged to achieve the Sustainable Development Goals (SDGs) and underlined its role in enhancing food security and preserving biodiversity.
UNCTAD Secretary-General Rebeca Grynspan underscored challenges of attracting investment, such as risk reduction, capacity-building and reforming international financial structures.
Meanwhile, the ministers identified high debt levels and a volatile international investment climate as key obstacles. They reached consensus on the importance of fostering a business-friendly environment, attracting environmentally responsible investments and establishing strategic public-private partnerships.
Making data, information, knowledge, investment and innovation available for all, especially for Low- and Middle-Income Countries (LMICs) and Small Island Developing States (SIDS), will be a game changer in transforming global agrifood systems to make them more efficient, inclusive, resilient and sustainable. This was a key takeaway from a special event focused on enabling research, science, and innovation in LMICs and SIDS organised by the Food and Agriculture Organization of the United Nations (FAO) as part of the Science and Innovation Forum.
Climate-related disasters have become more frequent and intense taking a heavy toll on the most vulnerable countries: from deadly floodings in Libya, India and Pakistan; intense storms in Malawi, Mozambique and Zimbabwe; to intensifying heatwaves across the world. Between 2008 and 2018 the impact of these types of disasters cost the agricultural sector in developing economies over $108 billion.
“We need bold, ambitious climate action now, to scale up action to strengthen resilience, adaptation and reduction of risks across agrifood systems and rural areas,” FAO Director-General QU Dongyu said at the event noting that for climate action to be effective, it must be based on sound research, science and innovation, and cannot adopt a “one-size-fits-all” approach.
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South Africa mulls Dutch, Danish entry to $8.5bn climate pact (Engineering News)
South Africa’s Cabinet will consider a proposal on whether to include the Netherlands and Denmark in its landmark $8.5 billion climate-finance pact with some of the world’s richest nations. Expanding the so-called Just Energy Transition Partnership could give momentum to the implementation of an agreement that’s been bogged down by delays and opposition from South African coal miners since it was announced almost two years ago at the COP26 climate summit in Glasgow.
“The matter will be tabled before cabinet and thereafter a decision will be communicated,” said Vincent Magwenya, South African President Cyril Ramaphosa’s spokesman. He declined to comment further. The pact with the UK, US, France, Germany and the European Union to help South Africa reduce its reliance on coal, which is used to generate more than 80% of its electricity, is seen as a blueprint for deals agreed later with other coal-dependent developing nations such as Indonesia and Vietnam. South Africa is the world’s 14th-largest source of climate-warming greenhouse gases.
Kenyan Court Dismisses GMO Lawsuit, Raises East Africa Trade Concerns (VOA)
A Kenyan court has dismissed a case challenging the importation of genetically modified foods, letting stand an earlier court ruling allowing the entry of so-called GMOs. The Law Society of Kenya, the nation’s premier bar association that petitioned the court, argued that genetically modified food was unsafe for humans and that lifting a ban on its importation was unconstitutional.
But in a decision handed down Thursday, High Court Justice Oscar Angote ruled that the petitioners failed to prove that such food was harmful for human consumption.
Last October, the Kenyan government lifted a ban on the importation of genetically modified foods because of growing food insecurity and the inability of farmers to produce enough food to feed the population.
Angote ruled there was no evidence to show that the modified food can harm human beings. He also said there is a need for the population to trust the institutions set up to check the quality of food.
FEC approves sub-committees for industrial revitalisation, free trade zone (Premium Times Nigeria)
The Federal Executive Council (FEC) has approved the formation of two committees on the industrial revitalisation roadmap and review of the Free Trade Zones in the country to improve the nation’s economy.
The Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, disclosed this at the end of the second meeting of FEC on Monday in Abuja. She said the committees, to be chaired by President Bola Tinubu, would have various sub-committees to harmonise the activities of the ministry with those of other ministries and agencies relevant to it.
Mrs Uzoka-Anite said the sub-committees would come up with a roadmap toward the full revival of the economy in line with the president’s eight-point agenda. The minister explained that the sub-committees will include consumer credit, commodity exchange, heavy industries, steel development, and licensing and certification of artisans. Others are the sub-committee on trade facilitation and liberalisation, mining and solid minerals, oil and gas, as well as the creative industry.
Sea access as a crucial element in Ethiopia’s development agenda (Ethiopian News Agency)
In light of Ethiopia’s ever-growing population, gaining access to the sea is not a mere luxury but a matter of utmost significance for the country’s existence. As the population continues to increase, the demand for various resources and opportunities has also risen exponentially. Therefore, Ethiopia believes that sea access is essential to catering to the needs of its expanding populace and ensuring their survival and well-being.
Ethiopia’s quest for a sea port is undeniably justifiable given its landlocked geographical position and the potential benefits that access to a sea port can bring. Being surrounded by landlocked countries, Ethiopia faces significant challenges in terms of importing and exporting goods. Therefore, seeking access to a sea port is a logical step for the country to enhance its economic growth and regional integration.
Afreximbank Begins Developing $1Billion Morocco-Africa Trade and Investment Promotion Programme (The Fintech Times)
African Export-Import Bank (Afreximbank) has entered into a memorandum of understanding (MoU) with the Government of Morocco, represented by the Ministry of Economy and Finance, to develop a $1billion Morocco-Africa Trade and Investment Promotion Programme. According to the terms of the MoU, the programme will aim to facilitate and guide future cooperation in areas of common interest between Afreximbank, the Ministry of Economy and Finance of Morocco, other government departments, and Moroccan economic operators.
Areas of collaboration under the programme will include financing and promoting intra- and extra-African trade through the implementation of credit, risk bearing and trade information and advisory services. It will also include support for engagements, missions, exchange of information and capacity building.
Benin breaks into the top 10 for tax transparency worldwide, the only African country in the group (Ecofin Agency)
Benin achieved a remarkable performance for the latest global tax expenditure transparency index. The country has entered the top 10 most tax-transparent countries globally, securing the 8th position with a score of 66.3/100 and standing as the sole African representative in this category. The country even outperformed powerful countries like the United States and Italy.
This ranking, published on October 9 by the Council on Economic Policies (CEP) in collaboration with the German Institute for Development and Sustainability (IDOS), aims to strengthen transparency and accountability in tax expenditures worldwide. In this year’s edition, South Korea holds the first place, followed by Canada. France, on the other hand, ranks 5th.
Resource-rich African countries target emissions reductions in energy sector with Commonwealth support (The Commonwealth)
Government officials from six emerging oil and gas producers in Africa gathered recently in Senegal to examine tangible actions they could undertake, as to minimise greenhouse gas emissions in the energy sector. The week-long workshop, titled Oil and Gas Emissions Visibility and Reductions, was delivered by the Commonwealth Secretariat, in collaboration with the Rocky Mountain Institute (RMI), Natural Resources Governance Institute (NRGI), Norwegian Petroleum Directorate and other industry experts.
More than 50 delegates from Ghana, Uganda, Namibia, Tanzania, Mauritania, and Senegal – countries with significant petroleum discoveries - took part in the training. Each country’s delegation included representatives from various petroleum, environment and climate institutions.
Naadira Ogeer, Economic Adviser at the Commonwealth Secretariat and project lead for the New Producers Group, said: “If oil and gas projects were designed from the beginning with emissions management as a key criterion, it would drastically change the emission footprint from these assets.” “This is the unique opportunity for emerging producers, even with little or no infrastructure, they could become the gold standard for emissions management. This is no easy feat and will require policy coherence and considerable technical assistance to achieve.”
Corruption costs Africa $140 billion a year (defenceWeb)
Interpol’s just ended Africa conference in Luanda closed with delegates agreeing to increase information sharing in multiple crime areas from counter-terrorism to wildlife trafficking.
More than 160 senior police officers from Africa and elsewhere attending the three-day conference in the Angolan capital heard data sharing across Africa using Interpol systems increased by seven percent in 2022. This led to the international police organisation saying in a statement “even greater information sharing within and beyond Africa is recognised as a necessary condition to effectively address global crime threats”.
“Every year, Africa loses on average $60 billion in illicit financial flows and more than $140 billion to corruption. The AU will continue to rely on African police through Afripol (the AU ‘mechanism’ for police co-operation), Interpol and police in member states to respond to these threats,” Monique Nsanzabaganwa, AU Deputy Chair, said.
“A major source and transit region for environmentally sensitive commodities exploited and illegally trafficked to the rest of the world, Africa is a destination region for waste and other pollutants, often illegally trafficked and disposed of,” the post conference statement reads in part.
The Government of the Kingdom of Lesotho in collaboration with the United Nations Economic Commission for Africa (ECA) Sub Regional Office for Southern Africa (SRO-SA) and the United Nations system in Lesotho convened a two-day Regional Policy Dialogue (RPD) to explore the sustainability of MSMEs in Southern Africa through leveraging local content policies (LCPs) and Frameworks.
Officiating at the meeting, the Principal Secretary, Ministry of Trade and Industry, Business Development and Tourism, Mr. Pokello Mahlomola, highlighted that the strategic approach to Micro, Small and Medium Enterprises (MSMEs) development must focus on enhancing their survival rates through tailored training programs, facilitating access to information, improving financial accessibility, creating favourable fiscal policy environments, and assisting in the adoption of modern technology.
Speaking at the same event, Ms. Olayinka Bandele, Chief, Inclusive Industrialization ECA, speaking on behalf of ECA SRO-SA Director, Ms. Eunice Kamwendo, said that LCPs and Frameworks offer opportunities in support of the development of domestic MSMEs. She noted that globally, an increasing number of countries have introduced or reinforced LCPs with a view to stimulate the use of local factors of production, such as labour, capital, supplies of goods and services, to create value in the domestic economy and hence expand the industrial sector and linkages.
Nigeria to host Africa’s oil producing countries dialogue on local content (Vanguard)
Critical stakeholders and experts in Africa’s Oil and Gas industry will converge in Abuja for the 3rd edition of the African Local Content Roundtable to review innovative approaches instituted by the African Petroleum Producers Organisation (APPO) Member Countries. The conversation will drive local content development and sustainability of Africa’s hydrocarbon resources.
The organizers say the objective of the event which is scheduled to hold between October 25 & 26, 2023, at Fraser Suites, Abuja, is to spur Local Content officials and experts in Member Countries to review the approaches and regulations employed to drive Local Content along the value chain of Africa’s Oil & Gas industry, and address the imminent challenges facing the industry.
Critical Minerals Africa Summit Defines the Future Minerals Economy (Energy Capital & Power)
A high-level panel at Critical Minerals Africa 2023 – organized by Energy Capital & Power – discussed how sustainable practices, localized supply chains and integrated mining operations will help secure critical minerals supplies of the future.
Speaking to the scope of demand growth for energy transition mineral and metals, Kwasi Ampofo noted: “We currently use 50 million metric tonnes of metals going into transition technologies and accompanying infrastructure. By 2050, if we reach the scenario based on current policies and economics, we will need about 140 million metric tonnes. If we reach the net-zero scenario, this goes up to 250 million metric tonnes.”
“There’s a lot of discussion around demand, but we don’t see the same enthusiasm around funding supply. There is a shortfall in supply, which then spikes demand. Every time the price drops – for example, in nickel – there will be producers who are unable to match the current supply at that price. We will then have a continuation of these supercycles, which is not sustainable,” commented Duma Sisulu.
“If the critical minerals supply chain doesn’t change, then we have failed as Africans. We have the opportunity to do what the international oil giants did 50-60 years ago. We have the bargaining power for the deposits that sit on the continent,” said Deshan Naido.
The Critical Minerals Africa 2023 summit is currently taking place from October 17-19 and serves to position Africa as the primary investment destination for critical minerals. The event is held alongside the African Energy Week 2023 conference on October 16-20, offering delegates access to the full scope of energy, mining and finance leaders in Cape Town.
Africa aims to use global demand for critical minerals as a basis for development (Engineering News)
AEW 2023 Spotlights Gas-to-Power’s Role in Energizing Africa (African Energy Week Cape Town)
Africa grapples with a pressing need to meet its growing energy demands. However, natural gas has emerged as a promising solution, offering the continent a path to address its power scarcity. With vast reserves capable of generating 400 GW in sub-Saharan Africa, it has the potential to reshape the energy landscape. Gas-to-power technology, a vital step in the energy transition, emits fewer carbon emissions and eliminates harmful gas flaring.
Day two of African Energy Week (AEW) 2023, the African Energy Chamber’s (AEC) premier energy event, featured a session entitled Powering Africa: Harnessing the Promise of Gas-to-Power, exploring the opportunities and challenges associated with leveraging natural gas for power generation in Africa.
“We are currently experiencing a major shift in the energy sector to cleaner sources of energy. Africa’s response should be inched on Africa’s natural gas that is able to generate electricity, said Olakunle Williams, CEO Tetracore, adding, “There is a need for much more gas-based investments that will help unlock gas resources.”
Africa is blessed with sizable recoverable natural gas reserves. These reserves, often found in close proximity to major population centers, provide a unique opportunity to harness domestic resources for power generation.
African ministerial keynotes energize the start of AEW2023 (Trade Arabia)
MENA’s trade prospects get a boost from Asia and Africa (Macau Business)
Atradius, a global trade insurance leader, has today released its 2023 Regional Economic Outlook report, which presents growth forecasts for key markets in the Middle East and North Africa, including differentiated outlooks for oil-exporting and energy-importing countries, and detailed expectations around trade activity and the impact of the global energy transition.
“Oil price fluctuations meant the MENA region could not maintain the 5%+ growth rate in GDP seen in 2021 and 2022,” said Rupa Jagannathan, Managing Director, Middle East, Atradius. “However, while growth will be weak this year, a rebound is likely in 2024, fueled by investments and economic diversification, as well as stronger trade partnerships with Asian markets and other African economies.”
UNCTAD urges channelling net-zero finance to support the energy transition in developing economies (UNCTAD)
UNCTAD issued a compelling call on 17 October at the 8th World Investment Forum, urging increased efforts to channel net-zero finance towards developing economies. The call emphasizes the crucial need for capital in these countries, where significant opportunities for growth lie.
UNCTAD Secretary-General Rebeca Grynspan said the energy transition, a critical element in addressing climate change, requires substantial investment. “The investment needs are much higher in developing than in developed economies, relative to their existing asset bases,” she said.
To limit global warming to 1.5° Celsius above pre-industrial levels, the world needs investment equivalent to one and a half times today’s global GDP by 2050. Africa, burdened by interest rates four to eight times higher than developed countries, struggles to attract the necessary investment.
The forum, taking place in Abu Dhabi from 16 to 20 October, brings together governments, global institutions, investors, stock exchanges, investment promotion agencies and sovereign wealth funds to discuss the challenges of financing global sustainable development and the energy transition
World Investment Forum 2023: Global leaders urge action for sustainable development (UNCTAD)
UNCTAD’s 8th World Investment Forum opened on 16 October in Abu Dhabi, United Arab Emirates, focusing on the investment challenges faced by the world’s developing countries amid today’s global crises. UN Secretary-General António Guterres, in a statement, urged participants – heads of state, business leaders, sustainable stock exchanges, sovereign wealth funds and experts – to put the Sustainable Development Goals (SDGs) Stimulus Package into effect and work towards delivering $500 billion annual investment for developing countries.
With the theme "Investing in Sustainable Development," the forum strategically aligns with the upcoming global climate change talks at COP28. A dedicated track within the forum will focus on advancing climate finance and investment, providing a crucial platform for policymakers to find solutions and support global climate negotiations.
The opening-day Global Leaders Summit addressed the $4 trillion SDG investment gap, as only 15% of the goals are on target to be met by 2030, with the investment gap in the developing world growing from $2.5 trillion per year in 2015 to $4 trillion today. The summit revealed a staggering $6 trillion valuation for the sustainable finance market.
However, Secretary-General Grynspan pointed out: "Not enough funds are going into new renewable energy plants, water and sanitation installations, agricultural projects, hospitals. And only 5% of all sustainable funds are located in developing countries. Funding exists, but allocation has been misguided."
Bridging the Digital Divides (UNESCO)
Despite progress in recent years, only 36% of Africa’s population had broadband Internet access in 2022. Furthermore, the substantial digital gender gap (35% versus 24% in 2020) and a significant divide in digital skills continues to hamper the continent’s progress towards achieving Internet Universality. In this context, the 12th African Internet Governance Forum, held in Abuja, Nigeria on 20 September 2023, was organized under the theme, "Revitalizing the Internet Universality ROAM-X Framework for Human-Centric Digital Transformation in Africa".
The ongoing assessments in Africa have already yielded recommendations that have assisted Member States, such as Niger and Senegal in initiating laws and strategies related to rights and universal access to the Internet.
Concerted efforts urged to close digital gap in Africa (Xinhua)
Delegates attending the Mobile World Congress 2023 (MWC2023) in the Rwandan capital of Kigali on Tuesday called on Africa to accelerate digital connectivity, accessibility, and affordability to bridge the digital divide on the continent. The event brought together more than 2,500 delegates, including political leaders, government officials, experts, representatives from the United Nations and the African Union, as well as dozens of technology companies and start-ups, among others, from across Africa and the world.
"Financial technology is starting to make a big difference in the everyday lives of our citizens. The potential of digital health technology to transform our health systems is also very clear. We have to address the gaps in the access and connectivity with a sense of urgency to many Africans remaining offline," said Rwandan President Paul Kagame while speaking at the event.
He noted that although Africa has the fastest-growing mobile penetration rate globally, there is still a long way to go. "We must continue to prioritize digital skills and literacy. Globally, we are also seeing strong momentum to support Africa’s digital transformation."
China woos global south and embraces Putin at belt and road Beijing summit (The Guardian)
World leaders are gathering in Beijing for China’s belt and road initiative (BRI) forum, the third such event since the trademark global development drive was launched by President Xi Jinping 10 years ago.
The BRI was originally envisioned as a vast physical and digital infrastructure project to connect China with central Asia, south-east Asia, Europe and the rest of the world. It later broadened into a mammoth infrastructure financing vehicle for Chinese lenders to support projects in nearly every corner of the world, particularly in the global south. With that support came China’s mounting influence on the world stage, even as western countries became increasingly sceptical of the BRI.
Analysts see Xi making a renewed focus on engagement with the global south, as relations with the west are increasingly frosty.
Recent research published by Boston University found that while China’s development finance institutions provided about $331bn (£271bn) to recipient countries between 2013 and 2021, “many of the recipients of Chinese finance are subject to significant debt distress”. China has also spent about $240bn bailing out countries struggling with their BRI debts, according to separate research published earlier this year.
Beijing also wants to shift to quality rather than quantity when it comes to its overseas lending and investments. In a white paper published last week, the Chinese government said that “the ultimate goal of the BRI is to help build a global community of shared future”. That means focusing on issues such as food security, infectious diseases, artificial intelligence and climate change, according to the white paper, rather than just economic development.
Building an Open, Inclusive and Interconnected World for Common Development (The Third Belt and Road Forum for International Cooperation)
Keynote Speech by H.E. Xi Jinping
This year marks the 10th anniversary of the Belt and Road Initiative (BRI) I proposed. The BRI, drawing inspiration from the ancient Silk Road and focusing on enhancing connectivity, aims to enhance policy, infrastructure, trade, financial and people-to-people connectivity, inject new impetus into the global economy, create new opportunities for global development, and build a new platform for international economic cooperation.
Over these 10 years, we have stayed committed to this founding mission. Thanks to our joint efforts, Belt and Road international cooperation has gotten off the ground, grown rapidly and produced fruitful outcomes.
Over these 10 years, we have endeavored to build a global network of connectivity consisting of economic corridors, international transportation routes and information highway as well as railways, roads, airports, ports, pipelines and power grids. Covering the land, the ocean, the sky and the Internet, this network has boosted the flow of goods, capital, technologies and human resources among countries involved and injected fresh vitality into the millennia-old Silk Road in the new era.
Changes of the world, of our times, and of historical significance are unfolding like never before. China is endeavoring to build itself into a stronger country and rejuvenate the Chinese nation on all fronts by pursuing Chinese modernization. The modernization we are pursuing is not for China alone, but for all developing countries through our joint efforts. Global modernization should be pursued to enhance peaceful development and mutually beneficial cooperation and bring prosperity to all. On our way forward, we will encounter both headwinds and tailwinds. We need to stay focused on our goal, take results-oriented actions, persevere, and keep moving forward until our goal is met. China will work with all parties involved to deepen Belt and Road partnerships of cooperation, usher this cooperation into a new stage of high-quality development, and make relentless efforts to achieve modernization for all countries.
Now, I wish to announce eight major steps China will take to support our joint pursuit of high-quality Belt and Road cooperation.
China’s Belt and Road summit kicking off in Beijing (DW)
President Ruto’s speech at BRI forum in China (Capital News)
Vladimir Putin feted at Xi Jinping’s global Belt and Road summit (BBC News)
KEY DOCUMENTS
A Global Community of Shared Future: China’s Proposals and Actions, September 2023
The Belt and Road Initiative: A Key Pillar of the Global Community of Shared Future, October 2023
Quick links
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Kenya Country Economic Memorandum: Seizing Kenya’s Services Momentum (World Bank)
The latest Kenya Country Economic Memorandum – Seizing Kenya’s Services Momentum, analyzes the key drivers and constraints to boosting inclusive long-term growth and provides policy options for reforms. While growth in Kenya has been solid, there is a need to increase productivity and investment to create much-needed jobs.
This report looks specifically at how including the services sector – a sector that is growing and becoming increasingly more traded – in Kenya’s growth strategy can contribute to long-term growth and job creation, including in non-services sectors.
IMF lauds Kenya move to join Pan-African payment system (ZAWYA)
The International Monetary Fund (IMF) has lauded Kenya’s move to join the Pan-African Payments and Settlement System (Papps), terming it a step in the right direction in addressing foreign-exchange-related challenges in frontier markets. Kenya joined Papps on September 29, after the Central Bank signed the instruments of accession. The arrangement is billed as a game changer in facilitating cross-border trade in local currencies.
Currently, 10 economies are part of Papps, a brainchild of the African Continental Free Trade Area Secretariat and Afrexim Bank, which went live in 2021. The other countries are Nigeria, Ghana, Liberia, Guinea, Gambia, Sierra Leone, Djibouti, Zimbabwe and Zambia.
The praise notwithstanding, the IMF states that economies such as Kenya should maintain focus on allowing foreign exchange to float freely, providing what has been termed as a shock absorber.
US trade with Kenya may be breeding some anxiety (Business Insider Africa)
Zimbabwe ranks among world’s top diamond producers (CGTN Africa)
Zimbabwe ranks as the seventh-biggest diamond producer in the world with an annual output of over 4 million carats worth 420 million U.S. dollars, state-run Zimbabwe Broadcasting Corporation news reported Monday, citing the latest production statistics by the Kimberley Process Certification Scheme (KPCS).
In terms of diamond output, the Southern African country was only behind Botswana, Russia, Angola, Canada, South Africa and Namibia, according to the KPCS, a regulator of trade and production of diamonds globally. Zimbabwe is aiming to produce 7 million carats of diamonds this year, and the sector is targeting an annual revenue of 1 billion U.S. dollars.
Industrialists Target Concessionary Credits For MSMEs, Ecosystem Players (Leadership News)
The industrialists under the auspices of the Lagos Chamber of Commerce and Industry, (LCCI) are advocating concessionary credits for Micro, Small and Medium Enterprises (MSMEs) to enhance sustenance of the private sector. This is as the Nigerian Association of Small and Medium Enterprises (NASME) has unveiled a substantial N2 billion empowerment fund dedicated to transforming the Micro, Small and Medium Enterprises (MSMEs) sector.
The president of LCCI, Dr. Michael Olawale-Cole recommended that, to reduce shocks from supply chain disruptions of raw materials, the Central Bank of Nigeria (CBN) should ensure that targeted concessionary credit to the private sector is sustained for MSMEs, while it embarks on tightening monetary policy to tame inflation. The chamber also said, the cost of logistics had gone up due to the poor state of roads and the lack of connectivity amongst farms, factories and markets.
Tunisia to keep fuel, food subsidies in 2024, raise taxes for banks, others (Reuters)
Tunisia expects its economy to grow by 2.1% in 2024, up from 0.9% in 2023, and plans almost the same subsidies for fuel, electricity and food while raising taxes for banks, hotels and liquor firms, a bill on its budget showed on Tuesday. The bill included no reference to an agreement with the International Monetary Fund (IMF).
Tunisia’s President Kais Saied this year rejected what he called IMF ‘diktats’ saying they could lead to social protests, casting doubt on the IMF deal.
Tunisia last year reached a staff-level deal with the IMF for a $1.9 billion loan, but it has already missed key commitments and donors believe the state’s finances are increasingly diverging from the figures the deal was based on. The government said it aims to reduce the public wage bill from 14.4% of GDP in 2023 to 13.5% next year.
African Development Bank Group President Dr Akinwumi Adesina toured the road during a recent visit to the West African nation. He expressed satisfaction that the bridge has increased economic integration and trade between Senegal, The Gambia, and other countries in the region.
Gambian President Adama Barrow has commissioned the 24-kilometer Senegambia Bridge access road co-financed by the African Development Bank and the European Union, saying it is a critical link that will help boost trade between Gambians and the rest of Africa.
He said the Trans-Gambia Corridor Project, which included the construction of the Senegambia Bridge, had eliminated delays and difficulties in ferry crossings that had previously occurred between Yelli-Tenda and Bamba Tenda. It used to take at least two days to get on a ferry to cross the Gambia River. Now it takes 10 minutes for vehicles to cross the river across the bridge.
Africa can produce more energy than it requires – Minister Ramokgopa (SAnews)
Africa can produce more energy than it requires within the next 30 years if it takes advantage of its natural resources. This is according to Minister in the Presidency for Electricity, Dr Kgosientsho Ramokgopa, who was delivering a keynote address on Green Hydrogen at the Africa Energy Week held in Cape Town.
“We can see that by smelting African iron ore locally, we are likely going to create much needed jobs and therefore the skills that are required to support that transition. In that way, in addition to broadening the industrial base, we are really getting people in good quality jobs…this is in addition to the decarbonisation agenda,” he said.
“We need to have a Pan African view in the exploitation of this energy carrier and our view is that by 2040 Africa can produce up to 50 times more energy from renewables than the world’s estimated demand. “This is as a result of our location advantages. I think we have some of the radiation levels of any parts of the world and we also have some of the best wind speeds along the coastal areas,” he said.
Maritime institute to enhance safety in the EAC region (Kenya News Agency)
The East Africa Community (EAC) is set to benefit from an ultra-modern maritime training facility as the region moves to tap into blue economy opportunities.
Domiciled at the Fisheries Training Institute (FTI) in Entebbe, Uganda, the facility, which is under construction at a cost of USD 1.45 million courtesy of the African Development Bank (AfDB), targets to train and build capacity for vessel operators in both navigable water bodies and the oceans. The facility, the first of its kind in the region, comes with state-of-the-art facilities, including marine training, a swimming pool bridge simulator for marine navigation and engineering training, equipped laboratories, and a medical first aid facility.
Ghana sets itself as beacon of climate change advocacy (BusinessGhana)
Ghana is passionate to be a global beacon of advocacy for climate mitigation and adaptation for a liveable planet, climate prosperity, and debt sustainability. This comes as the country prepares to host the global Secretariat of the governments of the Climate Vulnerable Forum (CVF) and the Vulnerable Twenty Group of Finance Ministers (V20).
“Having the main advocacy for climate change adaptation and mitigation coming from our country, joining the African Continental Free Trade Area (AfCFTA)will have an incredible benefit going forward, Mr Ken Ofori-Atta, Finance Minister, said, signalling that Ghana is beginning to build an international centre for climate mitigation and adaptation.
Already, the IMF has called on the international community to scale up climate financing to ensure that important efforts to tackle climate change do not crowd out basic needs, like health and education. Ghana is seeking to strengthen policies to adapt to and mitigate climate change through investment in resilient public infrastructure, particularly, in agriculture, urban development and coastal protection. The country is expected to soon set up a Climate Division at the Finance Ministry to tap into financial resources being dedicated by multilateral development finance institutions and climate investors across the world.
Unlocking sustainable investments in food systems (UNDP)
A staggering $1.8 trillion is allocated to environmentally harmful subsidies, with food systems receiving only 3 percent of total public climate finance. Coupled with the reality that over half of the world’s total GDP ($44 trillion) is moderately or highly dependent on nature, it is imperative we align public and private investments with scientific priorities and guardrails for healthy, sustainable food systems.
The global food system presents a huge business and investment opportunity with an estimated asset value of US$14 trillion, equivalent to between 16 percent to 20 percent of global GDP. Unfortunately, it is also causing negative impacts on people and planet. The vast majority of the hundreds of billions of dollars invested annually in food systems is misaligned and driving negative outcomes, generating $12 trillion in hidden social, economic, and environmental costs.
The current model of food production and consumption is driving widespread environmental degradation, climate impacts, and diet-related diseases. The global food system accounts for approximately one third of anthropogenic emissions, while 60 percent of deforestation is attributed to agricultural commodity production and land use change. Global support to agricultural producers could reach nearly $1.8 trillion in 2030 - but this support is heavily skewed towards measures that are distorting, unequally distributed and harmful to the environment and human health, according to the Food and Agriculture Organization. Therefore, transforming food systems is critical to achieve global targets including the Sustainable Development Goals (SDGs), objectives of the Paris Agreement, and the Kunming-Montreal Global Biodiversity Framework.
Putting Food on the Table: How are Central Africans responding to the food crisis? (World Bank)
World Food Forum: Strong momentum as Hand-in-Hand Investment Forum opens (FAO)
67 FAO Member Countries are now active Hand-in-Hand participants, and 35 ministers from the 31 countries participating in the four-day Forum, which facilitates pitching scalable agrifood investments to possible investment partners ranging from the private sector to important non-profit foundations and includes a range of global, regional and subregional multilateral bodies and financial institutions.
The second Hand-in-Hand Investment Forum began today, intent on quadrupling the more than $3 billion in fresh resources proposed in the inaugural event in 2022 to invest in poverty reduction, improved food security and sustainable agrifood systems that benefit the poorest.
“Without innovation and investment there is no future,” said QU Dongyu, Director-General of the Food and Agricultural Organization of the United Nations (FAO), which runs the Initiative and is hosting the Forum during the World Food Forum. He emphasized the importance of all stakeholders and especially the private sector in improving productivity and efficiency for the people who need it most. Qu urged participants to engage in the Forum as a “heartfelt” at a time when “heartbroken” news is too common. Shifting the narrative requires using our hands, he said.
World Food Forum opens with a call to accelerate climate action by transforming agrifood systems (FAO)
With the overarching theme of “Agrifood systems transformation accelerates climate action”, the Forum will see over the week a diverse array of experts, dedicated changemakers, and visionary leaders from various sectors, and intergenerational. The WFF aims to address the pressing issues surrounding agrifood systems and forge new paths towards a more sustainable, resilient, inclusive, and hunger-free future. “Transforming agrifood systems must be a central part of the global climate solution,’’ Qu highlighted.
The 2023 World Food Forum (WFF) kicked off today with a dynamic opening ceremony at the headquarters of the Food and Agriculture Organization of the United Nations (FAO) in Rome. The flagship event, a vibrant global platform that unites individuals from all walks of life and sectors, is dedicated to reshaping the future of agrifood systems.
Today’s opening ceremony was an important display of unity, emphasizing the global commitment to addressing the challenges related to agrifood systems and the climate crises. It featured inspiring speeches from influential leaders and youth activists who stressed the urgency of the situation and the need for collective action.
Growth without gains (UNDP)
Millions more face food insecurity in Africa (CAJ News)
In a bid to assess the progress made in the implementation by mobile operators in the region, the ECOWAS Commission convened a meeting of focal points from the NRAs in Abuja, Nigeria on 12th and 13th October 2023. The meeting of the NRAs was preceded by a training sponsored by the Smart Africa Secretariat to reinforce the capacity of the focal points on their understanding of international mobile communications and roaming ecosystem. The training was delivered from 9th to 11th October 2023.
Mr. Aliyu Yusuf Aboki, Executive Secretary of the West Africa Telecommunications Regulators Assembly (WATRA) with his remarks painted a vision of a West Africa where everyone has access to affordable and seamless telecoms services regardless of location and stated that the ECOWAS Regulation on Roaming is an essential vehicle for the achievement of this vision. He reminded the meeting of the role the Regulation in the facilitation of the African Continental Free Trade Area, bringing together the African countries of the opening of the African market for trade in goods and services, including ICT goods and services and digital trade. He therefore admonished Member States to continue collaboration towards addressing the persistent challenges.
The Heads of Anti-Corruption Agencies in the Southern African Development Community (SADC) convened in Swakopmund, Republic of Namibia, from the 11 to 13 October 2023 to discuss and share experiences on emerging issues and trends in corruption in the Region. The workshop, among others, discussed the linkages between Illicit Financial Flows (IFFs) and Corruption, the Continental Perspective on Combating IFFs, the SADC Region efforts to combat IFFs, the role of multi-stakeholder collaboration in addressing Corruptions, financial Crimes, and other Transnational Organised Crimes.
Speaking at the same event, the Chairperson of the Erongo Regional Council Management Committee, Honourable Benitha Imbamba said discussions on illicit financial flows, transnational organised crime and strengthening collaboration with other stakeholders in the fight against corruption were critical for the workshop to identify the challenges and shortcomings in the regional drive against corruption and transnational organised crime. She highlighted that these crimes cost economies financial resources that could have been channelled to the implementation of various national developmental programs.
Agreement signed to enhance trade between Organization of Islamic Cooperation and Africa (Arab News)
An agreement has been reached with the aim of boosting economic activities between member states of the Organization of Islamic Cooperation and those of the Eastern and Southern African Trade and Development Bank.
This TDB and the International Islamic Trade Finance Corp., a member of the Islamic Development Bank Group, signed a memorandum of understanding during the World Bank Group and International Monetary Fund annual meetings in Marrakech, Morocco. Under this MoU, both organizations will collaborate to provide trade finance solutions, with the aim of better serving their respective member countries in Africa, as stated in a press release.
These solutions encompass various investment products, including Murabaha, syndications, co-financing, risk-sharing, and Islamic factoring.
Negotiating services, goods as a basket to boost Africa trade (Business Daily)
At times, one has to travel to provide them (doctor) or consume (a tourist), resulting in a proximity burden— a need for physical contact. Other times, it is a simple click like downloading a music video. Contrary to goods prone to levies or paperwork, services trade is mostly associated with “beyond” taxes at the border that are not black and white any more.
Africa’s trade negotiators have in the past relegated services to the last stage in regional agreements despite the recent awakening that they are embedded. The intrinsic interconnectedness is hard to extricate, say, when a car is sold with a financing scheme and maintenance contract. This way, services and goods are kindred spirits because they have to be traded together. But they are also distinct. Services are borderless and intangible, unlike goods.
Recent research titled “Intra-Africa trade in services and the AfCFTA” by researchers from the University of Nairobi and the International Livestock Research Institute (Ilri), has amplified the need to focus more on “hard” factors compared to “soft factors” for leap-frogging growth in services trade in Africa. Simply put, it is a clarion call to develop digital, information, and communication infrastructure that extends internet coverage and mobile and broadband subscriptions.
Delegates pointed to the link between poverty and conflict and stressed the importance of finding a path to peace through sustainable development at a moment when Africa is plagued by food insecurity and violence, as the General Assembly today debated the causes of conflict on the world’s second-largest continent.
Africa holds great promise for peace and prosperity, said General Assembly President Dennis Francis (Trinidad and Tobago), as he opened the meeting. “If given the opportunity and with support from the international community, the continent would be indeed unstoppable.” However, holding it back are cascading and overlapping challenges, he said. The severe debt crisis translates into the loss of $500 to $600 billion annually, more than the gross domestic product (GDP) of 35 African countries combined, he noted.
The representative of Tunisia, speaking on behalf of the African Group, said the prevalence of the informal sector, weak tax administration systems and illicit financial flows cost Africa an estimated $89 billion annually in lost revenue. “It is crucial to tackle the structural and institutional challenges that constrain African countries from maximizing the use of their resources,” he said.
Moreover, the soaring cost of borrowing and debt distress have strained public finance with severe consequences on social spending, he said, adding that the “decent work deficit” in Africa is closely linked to the prevalence of the informal sector, which employs about 84 per cent of workers, rising to 95 per cent in the case of youth employment.
Global leaders call for action to meet ambitious development boost (UN News)
The event also addressed the $4 trillion SDG investment gap, as today only 15 per cent of SDGs are on target to be met by 2030, with the investment gap in the developing world growing from $2.5 trillion per year in 2015 to $4 trillion today.
The weeklong forum, organized by the UN Conference on Trade and Development (UNCTAD), focuses on the challenges faced by developing countries amid today’s overlapping global crises .The Secretary-General urged participants – including national and business leaders, sustainable stock exchanges, sovereign wealth funds and finance experts – to put the Sustainable Development Goal (SDGs) Stimulus Package into effect and work towards delivering $500 billion annual investment for developing countries.
They emphasised the need for international coordination involving both public and private sectors given the scale of the investment needs.
Members discuss reinvigorating efforts of working group on trade and technology transfer (WTO)
The Working Group on Trade and Transfer of Technology discussed two proposals at its meeting on 13 October. They aim to reinvigorate the Working Group’s deliberations and to propose recommendations to increase the flow of technology to developing countries.
At the meeting, members discussed proposals from the African Group and the United Kingdom. The African Group’s proposal was on the role of the transfer of technology in building resilience. Egypt, on behalf of the African Group, recommended restructuring the Working Group’s agenda to address the specific topics listed in the proposal, including the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights, trade facilitation, agricultural resilience and climate change. The communication from the United Kingdom, on intellectual property and voluntary licensing, explored improving future pandemic preparedness and equitable access to health products by facilitating voluntary licensing and technology transfer partnerships between developed and developing countries
India makes a pitch at WTO for members to collaborate in checking MNC dominance in e-commerce (BusinessLine)
World Investment Forum 2023: High-level round table on investment in the energy transition (UNCTSAD)
The energy transition will require massive amounts of investment. To limit global warming to 1.5° Celsius over the pre-industrial norm, the world needs about 1.5 times today’s global GDP in investment between now and 2050.
The investment needs are much higher in developing than in developed economies, relative to their existing asset bases. In developing countries, energy investment is needed not only for the transition, but also to ensure access to sustainable and affordable energy for all. As an example, installed capacity in renewable energy needs to increase by a factor of 2.5 in the most advanced economies, and by a factor closer to 25 in LDCs.
But Africa receives only 3.5% of total FDI in the world. And much less if we narrow it to renewable energies. To date, 31 developing countries, including 11 LDCs, have not yet registered a single utility-sized international investment project in renewables or other energy transition sectors since the Paris Agreement was approved in 2015.
Now Africa has a great opportunity here not only for his energy transition but for the energy transition of the rest of the world as we clearly state in our Economic Development African Report 2023. Africa is by right the start of many of the renewable energy supply chains of the future. Africa is home to 48% of the world’s reserves of cobalt and manganese, 80% of the world’s reserves of phosphate rock, and 92% of the world’s reserves of platinum-group metals. All these critical minerals are key in areas such as electric cars, lithium-batteries and hydrogen batteries.
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Ending Poverty is our First Global Goal, and We are Off Track
WHO, WIPO, WTO to hold technical symposium on human health and climate change
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President: South Africa derives great benefit from BRICS membership (SAnews)
“Rest assured, BRICS is a great benefit to our country and it’s an association that we are very proud of and that we intend to continue with.” These were the words of President Cyril Ramaphosa as he fielded questions in the National Council of Provinces (NCOP) on the benefits of South Africa being part of the BRICS group of countries.
The group is now known as the BRICS Plus group following the addition of six new member countries - namely Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE. “We, as a country, have benefitted a great deal [through] the association with other BRICS countries. China today is our largest trading partner and this has largely been cemented, upheld and encouraged by our membership of BRICS,” President Ramaphosa said on Thursday.
Green hydrogen economy plays prominent role in SA’s just energy transition (SAnews)
President Cyril Ramaphosa has highlighted the vital role the green hydrogen economy plays in the country’s development and just energy transition. “The hydrogen economy has a prominent role to play in our country’s just energy transition, providing employment and support to vulnerable workers, communities and small businesses. “It has been estimated that the hydrogen economy has the potential to add 3.6% to our GDP by 2050 and approximately 370 000 jobs. We must act with purpose to harness the potential of the green hydrogen economy,” the President said.
President Ramaphosa was delivering remarks at the second iteration of South African Green Hydrogen Summit (SAGHS) in Century City, Cape Town, on Monday.
This second summit aims to highlight South Africa’s exceptional potential as an early stage, large scale and low cost world-class green hydrogen production hub, and total value chain investment destination.
The Presidential Session of the third session of the Namibia-South Africa bi-national commission (BNC) on Friday saw the creation of a financing instrument named the Industrial Development Fund, as well as the formation of a business council between the two countries. This is as Namibia’s trade minister Lucia Iipumbu emphasised that efforts to ensure a viable value chain development in the automotive sector is key to trade relations between the two countries.
The Namibia-South Africa Business Forum and exhibition, held on the margins of the BNC, brought together business executives from the two countries to explore trade and investment opportunities, network and discuss ways to strengthen partnerships to deepen bilateral economic cooperation. This included defining a collaborative model to enable the two countries to capitalise and maximise on opportunities stemming from the implementation of the African Continental Free Trade Area (AfCFTA).
Optimism as Kenya-US trade deal enters 3rd round of negotiations (The East African)
Trade negotiations between Kenya and the United States entered the third round last week, with four items listed for negotiations. The US-Kenya Strategic Trade and Investment Partnership (Stip) negotiations, held from October 4-7 in Washington DC, covered agriculture and sanitary and phytosanitary measures, services, domestic regulations, anti-corruption; and women, youth among others. The Kenyan trade team also held discussions with staff from the US Congress and Senate, a significant step in seeking approval from both Houses should the deal be finalised by the United States Trade Representative.
“The meeting discussed agriculture, services, domestic regulations, anti-corruption and matters on women, youth and ‘Others in Trade’. There were also non-text-based discussions on intellectual property rights by technical experts from both countries,” said Rebecca Miano, Cabinet Secretary for Investments, Trade and Industry. “The negotiations achieved a lot since there was more convergence achieved by the time the negotiations ended.”
Ms Miano revealed that the emerging issues on the renewal of African Growth and Opportunity Act (Agoa) were also discussed.
How to unlock the local motor vehicle industry value chain (Business Daily)
Attracting investments in medium to high technology industries, job creation, exports drive and reducing imports of vehicles, components and spare parts are core to this policy agenda. At the core motor vehicle manufacturing level, parts and components made locally include air filters, air brakes, oil filters, leaf springs, wiring harnesses, exhaust pipes, silences, batteries, radiators, U bolts, disc brake pads and shock absorbers.
Trade agreements to boost EU-Botswana relations (Tanzania Daily News)
Contemporary Botswana is stable and ready to enhance trade with the European Union (EU), which has been relatively low and heavily undiversified. This was said recently during a plenary session that premiered on the margins of the Global Expo Botswana (GEB) 2023.
Botswana Investment and Trade Centre (BITC) CEO, Mr Keletsositse Olebile said government had been proactive in entering into bilateral and multilateral trade agreements, which were active and enforced through SADC. Mr Olebile assured the EU business community that Botswana could give them access to more than 293 million consumers across the SADC region.
He added that through the Southern African Customs Union (SACU), Botswana had signed a number of sub-agreements with regional groupings around the world, indicating that SACU had an agreement with the MERCOSUR countries, which belong with South America.
How govt spurs growth (Tanzania Daily News)
President Samia Suluhu Hassan has underscored the government’s commitment to continue strengthening roads’ network and constructing bridge infrastructures across the country, in bringing development to the people. Dr Samia said this during the laying of foundation stone for the ongoing construction of Mkiwa-Itigi-Noranga road in Manyoni District, Singida Region on Sunday.
The 56.9 kilometres road stretch being constructed at a tarmac level at a cost of 67.2bn/- with an addition of 1.01 US million dollars, is part of Makongorosi-Rungwa-Itigi-Mkiwa road covering 413-km, which connects Tanzania and Zambia to the south as well as the central corridor from Mkiwa area to Singida – Dodoma highway. President Samia said the government’s efforts are geared towards connecting all districts and regions in the country with tarmac roads.
Used clothing from the West is a big seller in East Africa. Uganda’s leader wants a ban (ABC News)
Jostling for space, people jam the crowded footpaths crisscrossing a massive open market in Uganda’s capital. They are mostly looking for secondhand clothing, sifting through underwear for pairs that seem new or trying on shoes despite getting pushed around in the crush.
Downtown Kampala’s Owino Market has long been a go-to enclave for rich and poor people alike looking for affordable but quality-made used clothes, underscoring perceptions that Western fashion is superior to what is made at home.
Discarded by Europeans and Americans, these clothes are often purchased from wholesalers and then shipped to African countries by middlemen. It’s a multimillion-dollar business, with some two-thirds of people in seven countries in East Africa having “purchased at least a portion of their clothes from the secondhand clothing market,” according to a 2017 U.S. Agency for International Development study, the most recent with such details.
Egypt, African Union discuss cooperation in trade, industry, tourism, and minerals (Dailynewsegypt)
Egypt’s Trade and Industry Minister Ahmed Samir met with the African Union Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals Albert Muchanga on the sidelines of the Turkiye-Africa Business and Economic Forum in Istanbul. The meeting focused on the cooperation between Egypt and the African Union in various fields.
Samir expressed Egypt’s commitment to the trade and industry agenda in Africa, especially amid the global challenges that have affected the African economies. He also discussed Egypt’s preparations to host the Intra-African Trade Fair (IATF) 2023 in partnership with the Commission and the African Export-Import Bank (Afreximbank). He stressed the importance of having a large participation of African companies, organizations, and institutions in the fair.
Samir said that Egypt and other African countries are keen to use their membership in the Committee to create a strong and unified voice for Africa on international issues, especially regarding economic and trade matters, reforming the international financial system, increasing Africa’s share in global trade, attracting more investments and transferring technology to Africa.
Egypt, Libya to ban trade of non-Egypt-made drugs (The North Africa Post)
Libyan and Egyptian authorities have reached an agreement to ban the trade of pharmaceutical drugs, other than Egyptian-made, in Libya, ‘Libya Observer’ reports. The move came following a request by the Egyptian Customs Authority to the Libyan Finance ministry to allow only the entry of Egyptian-origin medicine through the Salloum border crossing with Libya.
The Libyan ministry has approved the request arguing that the step intends to deter customs violations as part of efforts to enhance trade exchange between the two countries. Egypt is facing a critical shortage of essential medical supplies because of a lack of dollars to clear imports held up at the nation’s ports.
Cairo Chamber of Commerce in April 2023 indicated that shipments of medical products, as well as materials needed for their manufacture locally, have been held up at various ports since January 2023.
Afreximbank, Morocco sign MoU for $1billion trade and investment programme (Afreximbank)
African Export-Import Bank (Afreximbank) has entered into a memorandum of understanding (MoU) with the Government of Morocco, represented by the Ministry of Economy and Finance, to develop a US$1billion Morocco-Africa Trade and Investment Promotion programme.
According to the terms of the MoU, the programme shall aim to facilitate and guide future cooperation in areas of common interest between Afreximbank, the Ministry of Economy and Finance of Morocco, other government departments, and Moroccan economic operators. Areas of collaboration under the programme will include financing and promoting intra- and extra-African trade through the implementation of credit, risk bearing and trade information and advisory services. It will also include support for engagements, missions, exchange of information and capacity building.
Digitization and unification of Customs’ systems in focus as Heads meet (COMESA)
Automation of customs clearance processes, customs connectivity and implementation of a COMESA regional authorized economic operator scheme were key issues in focus during the 9th meeting of the COMESA Heads of Customs conducted virtually on 10 – 12 October 2023.
While addressing the meeting, Dr Mohamed Kadah, COMESA Assistant Secretary General in charge of programmes said the unification of the African economic space was urgent and this calls for rationalization of tariff negotiations in COMESA with other regional economic communities, and Africa’s integration as a whole.
“Traders and investors are looking towards a one COMESA customs territory and not segments of customs territories to realize economies of scale and enjoy the full benefits of market integration,” Dr Kadah said. “We therefore need to re-energize or efforts and support the Tripartite and African Continental Free Trade (AfCFTA) processes at the same time. In this way, our interventions will remain relevant, and we will make incremental progress towards unifying the African economic space, a goal long mooted by our forefathers under the Abuja Treaty.”
Closing of the 8th edition of the ECOWAS Sustainable Energy Forum (ECOWAS)
The second and final day of the 8th edition of the ECOWAS Sustainable Energy Forum (ESEF 2023) was marked by decisive moments, consolidating its position as an essential platform for dialogue between the main national, regional and international actors in the West African energy sector.
According to the President of the ECOWAS Commission, Dr. Alieu Omar Toure, the Forum is truly “a reference platform to discuss the role of renewable energy and energy efficiency as a catalyst for sustainable energy in the ECOWAS region. These days of debate and interaction will stimulate the exchange of ideas, projects and initiatives aimed at promoting a more responsible use of energy and contributing to a more sustainable future. The Forum also reinforces the willingness and motivation of the ECOWAS Commission to work with all governments and partners”.
Afreximbank holds 7th Babacar Ndiaye Lecture in Marrakech (Afreximbank)
Africa will need a system to discover and nurture entrepreneurial talents to grow its economy and create jobs for its young population. This recommendation was made by Jim Clifton, chairman of the globally renowned polling and analytics firm, Gallup, when he delivered the 7th annual Babacar Ndiaye lecture on 14th October 2023. The lecture, which was held at the Fairmont Royal Palm Hotel in Marrakech, Morocco, was under the theme “The New World Order and the Future of Entrepreneurship in Africa”.
In his welcome remarks, Professor Benedict Oramah, President and Chairman of the Board of the Bank, reminded the audience of the changing nature of global trade, particularly the slow-down of globalisation at a time when Africa was poised to benefit from rising wages in China. The growth in global trade, following the collapse of the Soviet Union, the emergence of the World Trade Organisation and the opening-up of China had seen global trade accelerate dramatically, rising from $2 trillion to $7 trillion in the year 2000 and $24 trillion by 2022. The uneven benefits of globalisation, Oramah said, had led to a backlash, with populations in the west and some political leaders souring on the idea.
G20, African Union adopt IMF strategy for crypto regulation (TechNext)
The G20 (Group of Twenty) has ‘unanimously adopted’ a September 2023 joint paper on crypto regulation by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). This event took place in Morocco on Thursday. The G20 is an intergovernmental forum comprising 19 sovereign countries, the European Union and the African Union.
The fourth and final meeting of the G20 Finance Ministers and Central Bank Governors (FMCBGs) under the Indian Presidency is ongoing (Thursday-Friday) at Marrakech, Morocco, on the sidelines of the International Monetary Fund-World Bank Annual Meetings.
According to a press release on Friday morning, the FMCBGs have adopted the G20 Roadmap on crypto assets. This detailed and action-oriented roadmap will help coordinate global policy as well as develop mitigating strategies and regulations on crypto assets. It also takes into consideration the specific implications on Emerging Markets and Developing Economies (EMDEs).
2023 World Bank-IMF Annual Meetings: A New Vision for Challenging Times (World Bank)
The Bank has adopted new tools that could provide $157 billion in additional lending capacity over a decade—including the issuance of hybrid capital, a portfolio guarantee mechanism, and an adjusted loan-to-equity ratio. Further measures to unlock even more lending were discussed during the meetings, such as better utilizing callable capital and SDRs and creating a Livable Planet Fund by opening the Global Public Goods Fund to governments and philanthropies, increasing its ambition, and further incentivizing cooperation across borders.
The Chair of the Development Committee, a ministerial-level forum that represents 189 member countries, issued a statement, endorsing the new vision and pointing to the need to double down and complete the ambitious reforms which have been started ensure that the institution has the financing and operational capacity to become a better, bigger, and more effective Bank.
Regional Economic Outlook for Sub-Saharan Africa, October 2023 (IMF)
On the occasion of the World Bank-IMF Annual Meetings’ return to the African continent after 50 years – specifically to Marrakech, Morocco – this Special Issue on Africa discusses economic developments for the entire continent. After four years of crises and at the close of another difficult year, recent events, including the devastating earthquake in Morocco, severe floods in Libya, and the impact of Cyclone Freddy in Malawi, have underscored the continent’s ongoing vulnerability to natural disasters and the need to build resilience.
In the near term, there are tentative signs that the outlook in many countries in Africa is improving. Inflation is generally easing, economic activity is starting to pick up, and fiscal imbalances are gradually moderating. However, significant challenges remain, and it is too early to celebrate. For too many countries, inflation is still too high, debt vulnerabilities remain elevated, and medium-term growth rates are too low. The international community should maintain and enhance a cooperative approach to the provision of global public goods. In the case of Africa, it is essential to support the region’s most vulnerable climate- and conflict-affected states.
Transcript of African Finance Minister’s Press Conference
Better tax policies needed to combat illicit financial flows from Africa (ITR)
Capital flight due to public distrust of national tax regimes is bleeding billions of dollars of potential revenue from governments’ coffers across Africa, ministers have warned. They called for new policies to stop the drain of resources, at a time when interest rates are high and the continent faces a debt crisis.
All too often, those who make money in Africa move it offshore, sometimes illegally, depriving governments of desperately needed revenue. Analysts believe such tax avoidance is exacerbated when locals believe multinationals are not paying their fair share of tax, or the government wastes it.
“The emphasis on domestic resource mobilisation is very well placed, at a time when even concessional MDB or development financing as a whole is at elevated interest rates, based on the world trend,” Wale Edun, the Nigerian finance minister, told GlobalMarkets at the World Bank Group-IMF Annual Meetings in Marrakech last week.
China’s economic slowdown to impact African oil exporters the most (Nairametrics)
The International Monetary Fund (IMF) has said that the economic slowdown in China will impact African oil exporters the most. According to a Bloomberg report, the economic slowdown in China will have a notable impact on the growth of countries in Sub-Saharan Africa.
The IMF stated that a one percentage point (pp) decrease in China’s real Gross Domestic Product (GDP) growth results in approximately a 0.25 percentage point (pp) decline in total GDP growth across sub-Saharan Africa within a year. Particularly, oil-exporting nations would feel the most substantial impact.
It is important to note that China’s economic growth has slowed in recent years due to factors like a property downturn and the COVID-19 pandemic.
The IMF emphasizes that the adverse effects of China’s slowdown on the region would mainly stem from the export of commodities such as oil. China is a significant export partner for sub-Saharan Africa, purchasing about one-fifth of the region’s exports. To counterbalance this, countries in the region could enhance intra-African trade and invest more in infrastructure and human capital.
Cote d’Ivoire port expansion to boost African trade with China (CGTN)
Half of global population connected to mobile internet (Developing Telecoms)
According to industry body the GSMA over half (54%) of the world’s population owns a smartphone, but the rate of new mobile internet users has slowed.
The GSMA said in a statement that 4.3 million people now own a smartphone according to its annual State of Mobile Internet Connectivity Report 2023. It found smartphone users are adept at seeking out mobile internet services to assist a wide variety of tasks. Around 4.6 billion people are using mobile internet 4 billion are doing so through a smartphone which accounts for 49% of the population. Meanwhile, 8% of the population (600 million) are using the internet through a feature phone.
Sub-Saharan Africa and South Asia are the regions with the least connected populations where the usage gaps are 59% and 52% respectively. Adults in rural areas of lower middle income nations are 29% less likely to use mobile intent than those in urban areas, while women are 19% less like than men to use mobile internet.
The State of Mobile Internet Connectivity Report 2023 – Mobile for Development
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Finding purpose in BRICS: expanding mineral markets in Africa and Middle East
Here we AGOA Again: U.S. Looks to Renew African Trade Pact
Negotiators advance discussion on IFD Agreement integration into WTO legal structure
Agencies win awards for promoting investment in the energy transition
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President Ramaphosa’s closing remarks during the 3rd Session of The South Africa Bi-National Commission, Windhoek, Namibia (The Presidency of South Africa)
The Ministerial Report that we have just considered and approved has over 170 decisions across various areas of cooperation. This is testament to the thorough and commendable work of our respective Ministers and Officials.
Namibia is South Africa’s largest trading partner in the region. There is capacity to increase our exports to Namibia beyond current products such as chemicals, machinery, vehicles and steel. Similarly, Namibia could go beyond exporting precious metals, iron and steel products, live animals and other goods to South Africa. We have directed our ministers of trade and investment to finalise the draft agreement of cooperation to promote investment, industrial development, cross-border value chains and infrastructure development by March 2024.
This will enhance trade between the two countries and further contribute to the realisation of our regional and continental economic integration agenda. It will give more impetus to implementation of the African Continental Free Trade Area.
Automotive manufacturing gaining traction (Engineering News)
In a keynote address on October 13, Deputy President Paul Mashatile noted the importance of collaboration between the local sector and government with regard to growth in local manufacturing, highlighting the need for policies that incentivise industry participants to produce vehicles in the domestic market. “…the performance of the South African automotive industry is contingent upon a strategic collaboration between the sector and government in order to foster growth, create employment as they advance industry, particularly in the realm of manufacturing.”
Automotive transition presents value chain opportunities (Engineering News)
The transition of the automotive industry to new-energy vehicles holds potential to impact on many other industries, including mining, manufacturing, freight and energy, but collaboration and a policy framework are urgently needed, as current choices will affect the efficiencies of transport for the coming decades. These are some of the topics discussed by automotive industry professionals during the intermodal transport roundtable discussion held on October 11, in Midrand, during the South African Auto Week.
Developing sustainable mobility as part of the transition to net-zero is a huge challenge across the world, as all transport solutions must also be economically viable and transportation must be affordable. The transportation sector also accounts for about 25% of global greenhouse gas emissions, emphasised industrial equipment and technology company Robert Bosch director Björn Noack.
“A key recommendation, which will however not see a payoff within 12 months, is for companies to look at which state of the art trucks they should add to their fleets, as the powertrain efficiency of the trucks that we populate now will be in use for more than the next ten or twenty years and have a direct impact on the efficiency of the transport sector. This is not the time to hesitate,” he emphasised.
Trade, Industry and Competition on implementation of the African Continental Free Trade Area (AfCFTA) (South African Government)
The successful implementation of the African Continental Free Trade Area (AfCFTA) is expected to lead to diversification of exports and increased productive capacity. This is according to the Director of African Union and Africa Multilateral Economic Relations at the Department of Trade, Industry and Competition (the dtic), Ms Claudia Furriel.
Furriel was unpacking the AfCFTA Agreement at the webinar that was intended to engage the chemicals, cosmetics, plastics, and pharmaceutical sectors, as well as industry agencies, associations, and export councils including their members, on the benefits of exporting under the AfCFTA. The webinar was hosted by the dtic.
The Scientific Director at L’oreal South Africa, Ms Dershana Jackison, described the AfCFTA as a key business, regulatory and policy instrument that will shape the cosmetic market of the future. She urged industry players and trade associations to actively participate in its implementation and for government to ensure that the cosmetic sector is prioritised.
Kenya’s trade deficit narrows by $726m (The East African)
Kenya’s trade deficit for the first eight months of the year narrowed by nearly double digits on falling import bills due to reduced expenditure on materials for factories, machinery for infrastructure projects, and fuel. The deficit – the gap between merchandise exports and imports – fell to Ksh1.01 trillion ($6.8 billion) from nearly Ksh1.12 trillion ($7.51 billion) a year ago, provisional official data showed.
The 9.70 percent, or Ksh108.42 billion ($726.92 million), drop in the merchandise trade came at a time when growth in the manufacturing sector showed signs of a slowdown while the new administration cut investment in mega public infrastructure projects.
The Ambassador of Angola to Botswana and SADC Her Excellency Dr. Beatriz Antónia Manuel De Morais paid a courtesy call on the Executive Secretary of SADC, His Excellency Mr Elias Magosi on 12 October 2023, and reiterated her country’s commitment to support implementation of SADC’s regional integration programmes. Ambassador Morais restated the Republic of Angola’s readiness to work with the SADC Secretariat in implementing the 43rd SADC Summit theme, titled “Human and Financial Capital: The Key Drivers for Sustainable Industrialisation in the SADC Region’’ and to support with the implementation of decisions of SADC.
Botswana expo amplifies Zim investment, export opportunities (The Herald)
The ongoing 2023 Global Expo Botswana has offered Zimbabwe a prime opportunity to showcase its vast investment opportunities and export of various goods and services into the region and beyond. With 23 participating companies here, Zimbabwe is one of the largest exhibitors and its businesses are a centre of attraction as potential buyers and investors make enquiries on different products and services.
Today ZimTrade, the country’s trade development and promotion organisation, which facilitated the participation of local businesses at the expo, held a session with delegates to unpack various aspects of doing business with Zimbabwe and highlighted the vast export opportunities.
ZimTrade client advisor, Ms Nozipho Maphala, delivered the presentation in which she explored Zimbabwe’s exporting profile covering different products and service offers across economic sectors. She said the country was transforming its economy and diversifying its exports so as to grow the gains beyond the traditional export partners- South Africa and the European Union.
BoG Governor pushes for speedy debt restructuring under G20 Common Framework (MyJoyOnline)
The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has pushed for a fast-tracked debt restructuring for vulnerable countries under the Group of Twenty (G20) members, including Ghana, Ethiopia, and Malawi. This comes on the back of recent agreements reached between Zambia and Chad and its creditors, and the need to safeguard these countries from any domestic financial market instability, Dr Addisson said.
He was speaking at an African Caucus Meeting on “Making public debt useful for sustainable growth in Africa,” at the ongoing International Monetary Fund (IMF)/World Bank Group (WBG) Annual Meetings in Marrakech - Morrocco.
“While welcoming the latest developments on Zambia and Chad, we underscore the need to revamp the G20 Common Framework (CF) to ensure timely, orderly, equitable, inclusive, and transparent debt restructuring for distressed members in the region (including, Ghana, Ethiopia, and Malawi),” he said. “We also call for a carefully designed debt resolution mechanism, especially, for vulnerable members with large-domestic creditors (as in the case of Ghana) to help avert domestic financial market instability,” the BoG Governor added.
GEF2023: Farmer-driven policies must lead food security efforts (The Business & Financial Times)
Experts at the 2023 Ghana Economic Forum (GEF) have advocated new approaches which put farmers at the forefront of national efforts to address food security concerns. As producers, they said, any policy aimed at boosting production and food security must first and foremost speak to the needs and concerns of farmers if they are to yield the needed outcome; calling for a shift from the current top-down approach of policy formulation to a bottom-up regime.
The experts, during a panel discussion on the topic ‘Ensuring food sustainability and security: a call for new perspectives on the agricultural value chain systems’, came to a consensus that the current status quo – wherein there exists a gulf between policies and reality – cannot continue. They attributed the failure of numerous agricultural interventions by governments to their inability to address stakeholder concerns.
Give us bank of manufacturing, MAN pleads with FG (Tribune Online)
The Manufacturers’ Association of Nigeria (MAN) has called on the Federal Government to constitute a financial institution, a bank of manufacturing, whose sole mandate will be to offer financial services to operators in the real sector of the economy. President of the association, Francis Meshioye, made the call on Wednesday, at the association’s 51st Annual General Meeting media briefing, held in Lagos.
Meshioye stated that Nigeria’s manufacturing sector, as a catalyst for nation’s economic growth, is rather too big to be without a bank specifically designed to take care of its financial interests and needs. He argued that though there are commercial banks and even Bank of Industry (BOI), the sector cannot really leverage those financial institutions for development since they do not find the sector attractive to earn their commitments.
MAN to x-ray Nigeria’s competitiveness under African free trade deal (Vanguard)
The Manufacturers Association of Nigeria (MAN) is set to use its forthcoming 51st Annual General Meeting (AGM) as a platform to examine what Nigeria needs to do to ensure that the nation’s manufacturing sector is competitive under the African Continental Free Trade Area (AfCFTA) scheme. The AGM is scheduled to hold from October 17 – 19, 2023, with the theme, “Setting the Agenda for Competitive Manufacturing under the AFCFTA: What Nigeria needs to do”.
Speaking at a pre-AGM media briefing, in Lagos, on Wednesday, MAN President, Otunba Francis Meshioye, said that for Nigerian manufacturers to compete effectively there must be a concerted effort spearheaded by the government to tackle the binding constraints that limit local production, and aimed at attracting foreign investment.
“Currently, the cost of manufacturing is daily rising owing to scarce and unavailable manufacturing inputs that continue to shrink profitability and threaten the existence of the critical sector of the economy.
African commodity exchanges join forces under AfCFTA (The Business & Financial Times)
A total of 14 commodity exchanges on the continent have agreed to harness their collective potential under the African Continental Free Trade Area (AfCFTA), in what market watchers have described as one of AfCFTA’s biggest feats thus far.
High on the AfCFTA Association of Commodities Exchanges’ (ACX) agenda, the body is to work collectively on making the continent food-secure and promote market efficiency through sharing knowledge and best practices. ACX will encourage the adoption of modern trading practices including electronic trading platforms and standardised contracts, as well as enhance market information across the continent. This will enhance market efficiency, reduce transaction costs and attract greater participation from both domestic and international traders.
Opening Remarks at Press Briefing on the Regional Economic Outlook for Sub-Saharan Africa (IMF)
2023 has been a difficult year for the region’s economy, with growth slowing to 3.3 percent from 4 percent in 2022. But we are cautiously optimistic that there is light on the horizon. Growth is expected to rebound to 4 percent in 2024 and looks set to be broad based. Importantly, authorities in many countries are working hard to address macroeconomic imbalances. Fiscal deficits, for example, have been narrowing, helping stabilize public debt in most countries.
Still, it is too early to celebrate as many challenges lie ahead. The funding squeeze is not over, and while debt levels have stabilized, the cost of repayments has increased and high debt service ratios to revenue risk crowding out vital development spending.
The New Development Bank (NDB) and the Development Bank of Southern Africa (DBSA) are pleased to announce the signing of a USD 100 m loan agreement aimed at advancing sustainable infrastructure development in South Africa. This is a continuation of NDB’s strategic cooperation with DBSA, a leading development finance institution operating across Sub Sahara Africa and headquarted in South Africa. This is the second NDB loan to DBSA, following a successful implementation of the first loan of USD 300 m, which was earmarked for renewable energy.
Under the terms of the loan agreement, NDB will provide the USD 100 m loan to DBSA for a range of sustainable infrastructure development projects in South Africa, aimed at improving the country’s economic resilience, environmental sustainability and overall economic growth. The key features of the loan agreement include providing financing in South Africa towards: Clean and renewable energy Social infrastructure (including affordable housing, student accommodation and private health care) Digital infrastructure
Effective financial markets, key to sustainable development in Africa (UNECA)
Africa needs strong financial markets to unlock much needed capital to drive sustainable development on the continent, the acting Executive Secretary of the Economic Commission for Africa, Antonio Pedro, has urged.
Mr. Pedro, in an address at the launch of the Absa Africa Financial Markets Index 2023, highlighted that effective financial markets are key to Africa’s development prospects. He said Africa risked realizing the Sustainable Development Goals and the African Union Agenda 2063 owing to heightened financial and social challenges triggered by a combination of the COVID19 pandemic, growing inflation and geopolitical turbulence.
“Strengthening financial markets and diversifying the investor base would not only enable governments to mobilize more funding for economic recovery, sustainable development but also enhance financial resilience to future shocks,” said Mr. Pedro, adding that, “To foster the development of their financial markets, countries require a comprehensive approach, encompassing capacity building, robust infrastructure, essential reference tools, benchmarks and opportunities for peer learning.
DG Okonjo-Iweala calls for enhanced efforts to boost access to trade finance (WTO)
The Director-General outlined the key findings of recent joint WTO-IFC studies on the West African and Mekong regions. These studies have revealed significant trade finance difficulties faced by small traders and women-led businesses when seeking to participate in global trade. Rejection rates of over 40% and high costs for making requests discourage traders from seeking financial assistance from banks, she said. “Only up to 25% of trade is supported by trade finance in these regions, compared to 60-80% in advanced economies,” stated DG Okonjo-Iweala. However, according to calculations by WTO economists, “raising the trade coverage from 25% to 40% would increase annual trade flows by an average of 8%, reaching 80% in 10 years,” she added.
Partnerships and investment key to tackling today’s challenges, says UNCTAD deputy chief (UNCTAD)
UNCTAD Deputy Secretary-General Pedro Manuel Moreno speaks on 11 October at the opening ceremony of the 4th Qingdao Multinationals Summit in China. Partnerships are essential to addressing today’s global crises, driving sustainable progress and fostering shared prosperity, UNCTAD Deputy Secretary-General Pedro Manuel Moreno said on 11 October at the 4th Qingdao Multinationals Summit in China.
In a world marked by a pandemic, trade tensions, geopolitical challenges, rising food and energy prices, and mounting debt burdens, Mr. Moreno stressed the need for concerted efforts and coordinated action between governments, businesses and communities.
Stakes are high as heads of state, more than 50 government ministers, over 150 CEOs of leading companies and stock exchanges meet next week at the World Investment Forum 2023 in Abu Dhabi, United Arab Emirates (UAE), from 16 to 20 October. The forum is organized by the UN Conference on Trade and Development (UNCTAD). This edition takes place at a critical time, as developing countries face inadequate levels of investment in achieving the Sustainable Development Goals (SDGs), with an annual gap of more than $4 trillion, according to UNCTAD’s World Investment Report 2023.
UNCTAD Secretary-General Rebeca Grynspan said: “The forum is an opportunity to accelerate action and get more investments to flow into critical development sectors such as health care, food security and climate action. Without more investment, the delivery of the SDGs will be in jeopardy.”
This year’s edition will focus on the key investment challenges caused by today’s multiple global crises and revitalizing investment into food security, the transition to low-carbon energy, health systems, supply chain resilience and productive capacity growth in the poorest countries.
The world faces a global “polycrisis” affecting human and economic development at an unprecedented scale. Progress towards the Sustainable Development Goals (SDGs) has been painfully slow. For many countries, that progress has stalled or reversed, while the climate emergency is felt in intensifying force around the globe, hitting the most vulnerable the hardest. A much scaled up global effort is thus required to eradicate poverty, accelerate inclusive socioeconomic development, and tackle transboundary challenges.
At a time of increasing debt levels and strained government budgets, when more development finance is urgently needed, we, Heads of Multilateral Development Banks (MDBs), recognize the collective role we need to play in response to the global challenges and the efforts that will put us on track towards achieving the SDGs. To this end, we are committed to strengthen our collaboration and individual actions for greater impact.
We will also continue to explore ways to expand our lending capacity. We have identified Capital Adequacy Frameworks (CAF) measures, including those under implementation and consideration which, with strong contributions from shareholders and development partners, could potentially yield additional lending headroom in the order of USD 300-400 billion over the next decade. MDBs, working in collaboration with other development partners, can offer substantial leverage, deep knowledge and expertise, and an unparalleled proximity to governments and those most in need.
How Channeling SDRs is Supporting Vulnerable Economies
pdf Fourth G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting on 12-13 October 2023 culminates in Marrakech, Morocco (206 KB) (Press Information Bureau)
The G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the Indian Presidency was held during 12-13 October 2023 in Marrakech, Morocco, on the sidelines of the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG). Members discussed the priority of strengthening Multilateral Development Banks (MDBs) to address the global challenges of the 21st century and the report of the G20 Independent Expert Group (IEG).
Charting the way forward for logistics in Africa (TechCabal)
Solving the problem of logistics for the African market is critical. Africa is still heavily reliant on roads which accounts for 80% of the movement of goods and passengers, according to the African Development Bank. Of that 80%, only 15% is paved in Nigeria, per this Stears report. On another hand, investment in logistics startups on the continent is not as easy as it seems. Ciku Mugambi, CEO of Kobo360, a Nigerian logistics startup, admitted that operating a logistic business in Africa is not “sexy” compared to other tech sectors like fintech, for instance.
Mugambi said this during a panel session at TechCabal’s flagship conference, Moonshot, on Thursday, October 12. “We are literally just moving goods and people from one place to another and most people don’t find that to be very exciting. There is no doubt about how important logistics is. Nothing goes anywhere except we provide the means for that to happen,” Mugambi said.
Quick links
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South Africa Wants to Hand Operation of Rail, Ports to Business After $27 Billion Loss (Bloomberg BNN0
The South African presidency has a plan to reverse the collapse of a state-run ports and freight-rail sector that’s cost the economy at least $26.7 billion since 2010: hand over most of the responsibility for fixing it to the private sector. The plan is encapsulated in a 124-page Roadmap for the Freight Logistics System in South Africa seen by Bloomberg. It sets out time-lines for everything from setting up an independent port and rail regulator, allowing private companies to access rail lines and offering rights to operate ports and rail routes to private companies.
The plan is the latest evidence that South Africa’s ruling African National Congress has been forced into backtracking on one of its core tenets — that state companies and investment will lead economic growth — and instead rely on the private sector to arrest the decline of services. Private companies are also investing in power and water provision that were once the near exclusive purview of the South African state.
The need for South Africa to take action to fix its broken logistics system is urgent.
Launch of BMA a step in the right direction in securing South Africa’s borders
EU announces new aid package to Ethiopia (The Journal Record)
The European Union has pledged assistance worth 650 million euros to Ethiopia, nearly three years after it cut direct aid to the East African country over atrocities committed in a bloody civil war. Jutta Urpilainen, the EU commissioner for international partnerships, announced the agreement during a press conference with Ethiopian Finance Minister Ahmed Side in the capital, Addis Ababa, on Oct. 3.
“It is time to gradually normalize relations and rebuild a mutually reinforcing partnership with your country,” said Urpilainen, describing the aid package as “the first concrete step” in this process after a cease-fire ended the war last November. The EU aid package was initially worth 1 billion euros ($1.04 billion) and was due to be given to Ethiopia from 2021 to 2027, but it was suspended in late 2020 after fighting broke out in the northern Tigray region. The U.S. also halted assistance and legislated for sanctions.
VP urges Africa to boost domestic market for cashews (Tanzania Daily News)
Dr Philip Mpango has called on African countries to boost local consumption of cashewnuts and their by-products and tap into the enormous continental market of almost 1.4 billion people, under the African Continental Free Trade Area (AfCFTA). Launching Tanzania International Cashew Conference in Dar es Salaam on Wednesday, Dr Mpango also tasked the Ministry of Agriculture to fast track investments in cashew processing factories.
“It is imperative for African countries to work on reducing cashews consumer prices, so as to promote regional market for the crop and its related products, said Dr Mpango at the conference organised by African Cashew Alliance in collaboration with the Ministry of Agriculture and the Cashewnut Board of Tanzania (CBT). The conference brought together farmers, processors, cooperatives, traders, regulators, consumers, financial institutions, development partners, policy makers and other stakeholders of the cashew value chain.
“Let us buy and consume cashewnut produced in our continent…But for this to happen, consumer prices must be affordable to the majority of our people,” Dr Mpango underlined.
Nigeria’s Oil Production Improved in September, Still Far from OPEC’s Quota (THISDAYLIVE)
Nigeria’s crude oil production improved in September, rising by a volume of roughly 165,429 Barrels Per Day (BPD) during the month under consideration. However, analysis of the data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday, showed that the country is still far from meeting its Organisation of Petroleum Exporting Countries (OPEC) quota despite the increase in output.
But while the current production allocation given to Nigeria by the international producers’ group is 1.74 million barrels per day, the information from the petroleum industry regulator showed that Nigeria was only able to drill 1.34 million bpd last month. It would be the country’s highest self-reported crude oil output since January 2022 when Nigeria managed to produce 1.39 million bpd. The lowest production for that year was just above 900,000 bpd.
IMF to Nigeria: Focus More on Policies to Safeguard Vulnerable Persons (THISDAYLIVE)
The International Monetary Fund (IMF) yesterday advised policymakers in Nigeria to focus on designing policies to safeguard vulnerable persons in the country. The Washington-based institution also emphasised the need for Nigeria to discontinue the practice of funding part of it’s national budget with financing from the Central Bank of Nigeria (CBN).
Also yesterday, the President of the World Bank Group, Ajay Banga, reaffirmed the bank’s commitment to promoting increased intra-Africa trade, highlighting its role as a catalyst for fostering inclusive growth across the African continent. The Washington-based institution also emphasised the need for Nigeria to discontinue the practice of funding part of it’s national budget with financing from the Central Bank of Nigeria (CBN).
African govts urged to leverage AfCFTA to tackle food insecurity (The New Times)
The faster implementation of the AfCFTA and supporting the agricultural value chain are two of the key recommendations of a meeting of more than 200 ministers, economists, and private sector players from Central and Eastern Africa, which was held from September 26-29 in Bujumbura, Burundi.
Known as the Intergovernmental Committee of Senior Officials and Experts (ICSOE), the meeting organised by the United Nations Economic Community for Africa (ECA), discussed ways to improve manufacturing and food security in Central and East Africa and how to position the two sub-regions as preferred investment destinations.
According to the meeting’s report seen by The New Times, the leaders also called for government support for smallholder farmers and strong measures to reduce food waste which stands at around 40 per cent of all harvest in African countries.
Nigeria Ratifies AU Convention On Cross Border Cooperation (News Agency of Nigeria)
Nigeria has deposited its instrument of ratification for the African Union (AU) Convention on cross-border cooperation. Mr Adamu Adaji, Director-General, National Boundary Commission made this known in a statement signed by the commission’s Head of Information Unit, Mrs Efe Ovuakporie in Abuja on Thursday. Adaji said that the instrument was deposited at the African Union Commission Headquarters in Addis Ababa, Ethiopia, adding that Nigeria had earlier signed the convention on Jan. 29, 2017.
“With this deposition, Nigeria has become the 9th country to have ratified and deposited the Niamey Convention at the African Union Commission Headquarters.
He explained that the convention, otherwise known as the Niamey Convention, has a strong commitment by member states towards the promotion of cross-border cooperation for sustainable development of the African continent.
African Ministers of Finance, Planning and Economic Development have called for key reforms of the Bretton Woods Institutions at the 2023 Annual Meetings of the World Bank Group and the International Monetary Fund. The call for reforms was made during a meeting of the Africa High-level Working Group on the Global Financial Architecture on the margins of the Annual Meetings in Marrakech, Morocco.
Amidst the polycrisis, Ministers underscored the urgency of increasing access to liquidity and bolstering the global financial safety net. Specifically, they stressed the importance of securing adequate loan and subsidy resources for the Poverty Reduction and Growth Trust (PRGT) to ensure a minimum lending capacity of at least SDR 3 billion per year from 2025.
Ministers welcomed the IMF Executive Board decision from March 2023 to temporarily raise annual access limits for the General Resource Account (GRA) to 200 percent of quota and the cumulative access limit to 600 percent of quota. They called for making these increased access limits permanent and for aligning the PRGT’s access limits with those of the GRA.
Ministers also highlighted a pressing need for further resource mobilization for the Resilience and Sustainability Trust (RST) to ensure that more countries can access IMF lending with extended maturities to build their long-term resilience.
“As the global community gathers in Marrakech, we need to stand together, united in the goal of protecting our future prosperity and ending extreme poverty. Prospects for global growth in the medium-term are at their lowest level in decades. The scarring effects of successive crises are increasingly apparent, just as many countries are struggling to overcome high inflation, high debt, and significant financing shortfalls to provide basic services, support infrastructure and climate action, and address rising poverty, inequality, and fragility.
“The world has become more shock-prone, with increased risks to growth, development, jobs, and living standards that widen inequalities within and across countries. Emerging market and developing economies have been especially hard hit. Income divergence with advanced economies has deepened further, and the world is not on a path to eliminate extreme poverty by 2030.
“Marrakech 2023 is a call for enhanced global collaborative action on common challenges, so we can build resilience and expand opportunities for a better future.”These 4 Marrakech Principles for Global Cooperation provide a broad framework to help harness the power of multilateralism to the benefit of all.
Development Committee: The Managing Director’s Written Statement October 2023 (IMF)
The global economy has shown resilience, but the recovery is slow and uneven. Risks have moderated in recent months but remain tilted to the downside. Headline inflation is about half of its 2022 peak but the decline in core inflation is more gradual. Growth momentum across most low-income and emerging market countries is weakening and achieving the 2030 Sustainable Development Goals (SDGs) is becoming increasingly challenging. While restoring price stability, normalizing fiscal policy, and protecting the vulnerable remain near-term policy priorities, policymakers should actively pursue policies that can support sustained growth—including macro-structural reforms and green transition. Multilateral cooperation is critical to address the challenges that hold back global recovery and shadow future prosperity, including risks associated with geoeconomic fragmentation.
The global economy has shown resilience: macroeconomic policies are delivering, inflation is steadily declining, and financial markets have stabilized. But the recovery is slow and uneven, medium-term growth prospects are weak, and there is a risk of further divergence across countries. The key policy priorities are to (1) safeguard macroeconomic stability and rebuild buffers while enhancing prosperity through growth-oriented and green reforms and (2) bolster international cooperation to strengthen the global financial safety net and debt architecture and to support ongoing fundamental transitions that transcend borders and require joint action. The IMF—as trusted advisor, provider of financial support, and platform for cooperation—remains committed to bringing countries together to solve global challenges.
OCP Group and World Bank Join Forces to Boost Food Security and Agricultural Development in West Africa (World Bank)
At the World Bank and IMF Annual Meetings in Marrakech, the OCP Chairman Mostafa Terrab and World Bank Vice President for Western and Central Africa Ousmane Diagana signed a Memorandum of Understanding (MoU) to foster cooperation and programs benefitting five million farmers in Benin, Guinea, Mali, and Togo, covering 10 million hectares. This cooperation aims at accelerating investments and reforms to make fertilizers more accessible and affordable to farmers. “These projects are an important step towards unlocking Africa’s potential in global food security,” said OCP Group’s Chairman and CEO, Mr. Mostafa Terrab. “The goal is to drive a just and sustainable agricultural transition, by widening the access of farmers in West Africa to customized fertilizers that nourish the soil and improve crop yields, which in turn enhances the livelihoods of farmers, thereby contributing to African development and prosperity.”
This is a critical partnership to help achieve the commitments made by the Ministries of Agriculture and Food Security of member countries of the Economic Community of West African States (ECOWAS) in the Lomé Declaration endorsed in May 2023.
SADC commits to strengthen measures associated with ensuring food safety (SADC)
The Southern African Development Community (SADC) is committed to fostering regional coordination and harmonisation of food standards and regulations to prevent foodborne diseases, reduce the risk of food contamination, and safeguard the integrity of food.
In his official opening remarks at the 14th SADC Food Safety Technical Committee Meeting being held from 10th to 12th October 2023, Lusaka Zambia, SADC Director for Industrial Development and Trade (IDT), Mr. Dhunraj Kassee said one in ten people in the world falls ill and 420,000 people die every year after eating contaminated food. 40% of children under five years of age carry the burden of foodborne diseases, with 125,000 deaths every year. “SADC Member States commit to cooperate in developing and implementing effective measures that respond to threats of food contamination to protect lives and livelihoods while at the same time reducing differences in these measures, which may result in barriers to trade” he said.
In 2019, the AU published a common Sanitary (human or animal life or health) and (plant life or health) Phytosanitary (SPS) Policy Framework for Africa which recognises the importance of reducing barriers to trade. The SPS Policy Framework aligns with the objectives of the African Continental Free Trade Agreement (AfCFTA) and recognises the economic potential of the agriculture and food sector particularly in the intra-African cross border trade. The AU Commission therefore perceives this Meeting as a critical entry point of initiating actions to improve cooperation with SADC structures related to food safety.
Extreme Poverty in Developing Countries Inextricably Linked to Global Food Insecurity Crisis, Senior Officials Tell Second Committee (United Nations)
An increase in extreme poverty in developing countries — for the first time in two decades — is inextricably linked to the global food insecurity crisis, senior United Nations officials warned the Second Committee (Economic and Financial) today, calling for urgent strategies to turn back the tide.
Benjamin Davis, Director of the Inclusive Rural Transformation and Gender Equality Division of the Food and Agriculture Organization (FAO), presented reports of the Secretary-General titled “Eradicating rural poverty to implement the 2030 Agenda for Sustainable Development” and “Agriculture development, food security and nutrition”. He noted that more than 80 per cent of the world’s extreme poor live in rural areas — at rates nearly three times higher than among urban residents. He called for the implementation of inclusive, environmentally sustainable strategies that put the eradication of rural poverty at the centre.
Turning to the report on agriculture development, food security and nutrition, he said that some 29.6 per cent of the global population — 2.4 billion people — were moderately or severely food-insecure in 2022, 391 million more than in 2019, with more women and people in rural areas denied access to safe, nutritious and sufficient food year-round. A long-term, holistic approach is needed to address structural problems such as political and economic shocks, unsustainable management of natural resources and socioeconomic exclusion.
AU embarks on mitigating shortage of animal feeds (New Vision)
The African Union-Inter African Bureau for Animal Resources (AU-IBAR) has joined efforts with the Bill and Melinda Gates Foundation to transform the animal feed sector into an industry. The efforts are folded under a new project dubbed: Evidence Driven Short Term Solutions to Build Resilience and Address the Adverse Effects of Crises on African Feed and Fodder Systems, commonly referred to as Resilient African Feed and Fodder Systems (RAFFS) project.
According to Agriculture Ministry Assistant Commissioner Animal Nutrition/Principal Rage Ecologist Denis Mulongo Maholo, the project is aimed at helping six African countries develop a conducive environment for transforming the animal feed sector into an industry. ”By an industry we mean, there could be a clear movement of goods from one point to another and in such an industry, we expect things like contract farming, contract supplies with enough feeds supplied to the consumers at the right time,” he said.
Under the project, Maholo said they expect and aspire to eliminate the seasonal animal feed shortages the countries have been experiencing which have led to most of the farmers especially the poultry farmers to collapse out of business.
“Because of the loopholes in the value chain, we have had some of our exports being banned, because we cannot meet the quality demands of the market where we are taking the commodities.
Immediate action is needed to get Africa on track with global goals (FAO)
The Director-General of the Food and Agriculture Organization of the United Nations (FAO), QU Dongyu, today called for immediate action to help Africa get back on track to meet global goals on food security and nutrition, pointing to science, technology and innovation, investments, and the continent’s reservoir of resourceful youth, as potential solutions.
Qu was invited to address the first Vatican Roundtable of African Farmers, an event designed to provided farmers from Sub-Saharan Africa with the opportunity “to bring their unique perspectives and concrete experiences to the forefront of global discussions on agricultural development in their region,” organizers said. The meeting took place just days before the opening of the World Food Forum, FAO’s flagship annual event.
Africa has been a strong focus of FAO’s efforts since its foundation, nearly 60 years. Unfortunately, the number of undernourished people there has risen to over 281 million since the outbreak of the COVID19 pandemic, while conflicts and the climate crisis continue to plague the continent.
Africa is not on track to meet the global goals on food security and nutrition set out in the 2030 Agenda, nor the goals of the Malabo Declaration agreed to by Members of the African Union.”In Africa, we critically and urgently need more efficient, more inclusive, more resilient and more sustainable agrifood systems to increase agricultural productivity to be 2 times higher than what it is now,” Qu said.
Food Systems must be rewired to halt escalating hunger and soften climate impacts, WFP says on World Food Day (UN World Food Programme)
To make more progress in the fight against hunger, the world needs to make at-risk communities less vulnerable to climate shocks and other emergencies, the UN World Food Programme said today. “If we want to break out of the never-ending cycle of crisis and response, we need to address the root causes of hunger by multi-year, long-term projects that shield communities from the impacts of the climate crisis,” said Volli Carucci, WFP’s Head of Resilience and Food Systems.
While the role of climate in driving up hunger is growing, solutions are available. Early-warning systems can help vulnerable communities prepare for weather shocks. Communities and local food systems can be protected by restoring water resources, digging irrigation canals and rebuilding natural barriers against climate extremes.
“We need to rewire food systems in the places where people are hungry, and regenerate the foundation of those systems: the land. We have to help small farmers bring food back to degraded land and create jobs within food systems. In the long run this will help reduce humanitarian needs and the number of costly emergency response operations needed,” Carucci said.
South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, advocated for the ongoing and collaborative development of Africa’s oil and gas resources during Africa Oil Week on Tuesday – a stance that is fully supported by the African Energy Chamber (AEC)
Minister Mantashe’s acknowledgment of Africa’s substantial oil, gas and mineral deposits aligns with the AEC’s mission to leverage these resources for the continent’s development and his sentiments will be further unpacked at African Energy Week (AEW) 2023 – scheduled for 16–20 in Cape Town – where the Minister will provide a keynote speech during the opening ceremony.
Mantashe emphasized Africa’s substantial oil and gas reserves, citing recent discoveries of oil in Namibia and the Ivory Coast, as well as gas discoveries in South Africa. These findings not only underscore the continent’s resource wealth but also the growing need for increased investment in refining capacity across Africa.
“We are convinced that the development of Africa’s oil and gas sector will be the game changer for Africa as it was the case for developed nations. Any further delay in this regard prolongs the acceleration of the continent’s energy security and undermines our concerted efforts aimed at eradicating energy poverty,” he noted.
Experts speak on energy transaction costs in Africa (Premium Times Nigeria)
Some experts in the energy sector in Africa have proffered solutions to worrying energy transaction costs across the continent. Energy transaction costs in Africa include all the costs involved in transacting energy, such as investment, financing, and legal costs, among others.
A World Energy Outlook Special Report titled Financing Clean Energy in Africa, unveiled in September by the International Energy Agency (IEA) in association with the African Development Bank Group (AfDB), highlighted that energy investment on the continent has fallen short, accounting for a mere 3 per cent of the global total, even though Africa is home to one-fifth of the world’s population.
Climate change: Civil society orgs demand cancellation of debts from developed countries, IFIs (The Business Standard)
A group of country’s civil society organisations has called on the developed countries, particularly those in the Global North, and the international financial institutions (IFIs) to cancel all the debts of Bangladesh that are related to climate financing. The group, led by EquityBD, also demanded compensation and grant-based financing instead of loan on Thursday (12 October), reads a press statement.
Speaking at a human chain on Thursday, the civil society organisations criticised the World Bank, the Asian Development Bank and the Japan International Cooperation Agency for their role in making the Least Developed Countries (LDCs) and Climate Vulnerable Countries (CVCs) indebted in the name of climate finance.
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Bleak outlook for third-quarter economic growth in South Africa (Engineering News)
September reflected another month of weakened economic activity in South Africa, indicating bleak prospects for the economy’s growth in the third quarter, automated clearing house BankservAfrica’s Economic Transactions Index (BETI) data shows.
On a quarterly basis, the BETI is 2% lower, confirming that the economy lost momentum in the third quarter. This is substantiated by the data showing that the BETI has declined for the past three consecutive months. “As a valuable early indicator of economic activity, the BETI data reflects the ongoing ‘muddle-along’ narrative playing out in the South African economy,” explains independent economist Elize Kruger.
The South African economy continues to face many challenges of ongoing loadshedding, water supply issues and a logistics sector burdened by a steep deterioration in rail services and ongoing port inefficiencies, among others.
South Africa egg shortage: How poultry products became a hot commodity (BBC)
The country has been grappling with one of its worst outbreaks of bird flu - millions of chickens have been killed over the past few weeks, supplies of poultry meat have been threatened and supermarkets across the nation have run out of eggs.
Experts predict the egg shortage will cause the popular ingredient to jump in price - far from ideal considering it is one of the most affordable sources of protein for the millions living in poverty.
Retailers, farms and industry giants have also been hit, with the nation’s largest chicken producer stating the flu had “ravaged” a sector already burdened by rising costs and an electricity crisis.
In an effort to stop the spread of Highly Pathogenic Avian Influenza - a deadly, extremely infectious type of bird flu - farmers have culled more than seven million egg-laying chickens. That amounts to 20-30% of the country’s entire chicken stock, according to South African Poultry Association.
We’re working on cassava value chain revitalisation (Tribune Online)
The Minister Agriculture and Food Security, Senator Abubakar Kyari, on Tuesday, expressed hope over the maiden Africa Cassava Conference to boost productivity along the value chain towards achieving food security.
The Minister, who was represented by the Director, Federal Department of Agriculture, Engr Abubakar Garba, stated this in a keynote address during a press conference held ahead of the maiden African Cassava Conference holding from October 18-20, 2023 in Abuja, with the theme ‘Stimulating Africa’s Industrialization through Development of Cassava Based-Products and Assuring Quality Along the Cassava Value Chain’.
Kyari said the Ministry through the Cassava Value Chain is continuously working earnestly towards continuous promotion and development of cassava and its derivatives. He however expressed hope that the conference would highlight how stakeholders can work to develop a robust, commercially driven and economically viable cassava sector that will not only contribute to food and nutrition security but also increasingly contribute to growth of the commodity in Nigeria and Africa as a continent. Furthermore, the Minister assured the Ministry’s continued support to promote boundless opportunities that exist in the cassava sub-sector for all stakeholders.
Trade and Investment Opportunities to Come Under the Spotlight at the Namibia-South Africa Business Forum and Exhibition (The Department of Trade, Industry and Competition)
The Business Forum and Exhibition will focus on strategic priority sectors agreed to by both countries, namely: agriculture and agro-processing, automotive, clothing and textile, and green hydrogen, including exploring opportunities to strengthen cross-border value chains along with the integration of the requisite infrastructure and logistics supply chains.
Namibia and South Africa’s business executives will be exploring opportunities to increase trade and investment flows between the two countries at the Namibia-South African Business Forum and Exhibition, which will be held at the Windhoek Country Club on Friday, 13 October 2023.
The Forum is held under the theme: Forging a New Era of Mutually Beneficial and Reciprocal Trade and Investment Relations. The event is hosted by Namibia’s Ministry of Industrialisation and Trade, on the margins of the 3rd Session of the Namibia-South Africa Bi-National Commission (BNC) which is co-chaired by the His Excellency, Dr. Hage G. Geingob, President of the Republic of Namibia and H.E. Mr. Cyril Ramaphosa, President of the Republic of South Africa.
AfCFTA offers opportunities for chemicals and cosmetics sector (Freight News)
The chemicals, cosmetics, plastics and pharmaceutical sectors are set to get acquainted with the benefits offered under the African Continental Free Trade Area (AfCFTA). This will occur during a virtual workshop on the implementation of the AfCFTA hosted by the Department of Trade, Industry and Competition (the dtic) on Wednesday, October 11.
The dtic has already embarked on provincial awareness workshops, which provided a platform for information sharing with the private sector on the benefits offered under the agreement. The workshops were also used to identify South African companies in various provinces, in the targeted sector master plans and other priority sectors that have the capacity to export to the rest of the continent. More workshops focusing on different sectors are being organised.
U.S., EU to support African railway development to counter China (Nikkei Asia)
West eyes mineral-rich corridor in Angola, DRC, Zambia as Belt and Road slows
The United States and the European Union will offer assistance on the construction of an international railway in Africa to bring resources from mining areas to a port in a test of whether they can gain a foothold in Africa, where China has gained influence through its Belt and Road Initiative. It is also intended to strengthen supply chains for critical minerals, reducing the donors’ dependence on China.
“This is a game-changing regional investment,” U.S. President Joe Biden said on Sept. 9, when he announced the U.S. would support the development of the Lobito Corridor in partnership with the EU. The corridor aims to strengthen a distribution network that connects Angola’s port of Lobito on the Atlantic coast to Zambia and the Democratic Republic of the Congo, inland countries that are rich in mineral resources.
Africa’s total exports expected to hit close to USD1 trillion by 2035, Standard Chartered report reveals (Standard Chartered)
Rising regional trade levels and greater connectivity will unlock high‑growth corridors across Africa and beyond. Intra-Africa trade is expected to reach USD140bn by 2035, equating to 15 per cent of Africa’s total exports. Africa’s corridors with some of the world’s most dynamic regions will grow faster than the global average of 4.3 per cent. The East Africa-South Asia corridor is expected to emerge as the fastest-growing major corridor, at 7.1 per cent per annum through to 2035. The Middle East-North Africa and the Middle East-East Africa corridors will also be substantial, with their combined trade volume expected to reach almost USD200 billion by 2035.
Standard Chartered has today published its Future of Trade: Africa report, highlighting the outlook for African trade and providing a view of the African Continental Free Trade Area (AfCFTA) as a key proponent of optimising intra-African trade. The report finds that Africa’s total exports will reach USD952 billion by 2035 and the AfCFTA, once fully implemented, has the potential to increase this figure by a further 29 per cent. This represents an annual growth rate of 3 per cent from now until 2035.
Dr José Viñals, Group Chairman of Standard Chartered PLC, said: “Implemented effectively, the African Continental Free Trade Area can radically reshape future growth and development. It will enable higher value-add supply chains and more diversified exports, allowing member states to reduce historical commodity dependence and achieve meaningful progress towards multiple Sustainable Development Goals. Through our global footprint, local expertise and innovative solutions, we are committed to supporting the development of the right policies, securing cooperation, and applying technology and capital in order to build better connections within the continent, and beyond.”
Africa Trade Barometer by Stanbic IBTC Holdings Plc: Nigeria Rises To 4th In Africa’s Trade Rankings
Africa should leverage the AfCFTA to promote green transition (UNECA)
Africa, rich in mineral resources, must leverage the African Continental Free Trade Area (AfCFTA) to accelerate green transition to boost sustainable development and environmental protection. Speaking at a three-day peer review meeting for research papers on Green Considerations of the AfCFTA in Addis Ababa, ECA Director for Regional Integration and Trade Division, Stephen Karingi underscored the importance of green transition for Africa.
“Africa needs to use every instrument at its disposal to move towards green transition, this will be for the region’s own resilience and future competitive advantage as we have already seen from the example of the European Union Carbon Border Adjustment mechanism that African businesses competitiveness in foreign markets will be heavily tested,” said Mr. Karingi, emphasizing that Africa needs to create a policy and regulatory environment that promotes green growth, including green industrialization and environmental protection.
Climate change poses a significant threat to African countries’ economic, social, and environmental sustainability. Investing in green sectors and promoting sustainable investment practices is critical for African countries in mitigating the impacts of climate change and transitioning to a low-carbon economy. The ECA notes that the AfCFTA Protocol on Investment presents a unique opportunity for African countries to attract and promote investments in green sectors that support green transition.
Part of Africa’s Intra-Trade Challenges Include Inadequate Payment and Supply Chain Infrastructures
ECOWAS launch the West African committee for fertilizer control (World Fertiliser)
Over the years, issues related to fertilizer quality, access, and use have been a major challenge that limits the West Africa region’s potential to produce enough food to feed its populations and address food security and nutrition challenges. In light of this, the 2006 Abuja Declaration recommended efforts to increase Africa’s fertilizer use from 8 kg/ha to at least 50 kg/ha.
The economic community of West African states (ECOWAS), in cooperation with the West African economic and monetary community (UEMOA) and the permanent interstate committee for drought control in the Sahel (CILSS), has officially launched the West African committee for fertilizer control to support the joint implementation of the region’s harmonised regulation C/REG.13/12/12, relating to fertilizer quality control. The effort will contribute to the development of the fertilizer sector in ECOWAS member states and promote agricultural production and productivity across the region.
IFDC has been providing support to ECOWAS, UEMOA, and CILSS, as well as their member states, on fertilizer-related issues. This effort began in 1995, when IFDC conducted a study that revealed various challenges facing the fertilizer sector, including quality issues.
Plans to establish a Customs Automation Regional Support Centre (COMESA)
COMESA Secretariat is preparing to establish a Customs Automation Regional Support Centre at its Headquarters, in Lusaka, Zambia. This initiative is being undertaken in cooperation with UNCTAD through a co-delegation agreement.
“The implementation of the key activities for realizing the COMESA Customs Union is lagging and the main issues to be addressed are alignment of national tariffs to the COMESA Customs Tariff Nomenclature and Common External Tariff – issues that are within your areas of jurisdiction together with other stakeholders,” COMESA Director of Trade and Customs Dr Christopher Onyango told the customs experts.
The Secretariat is also collaborating with the World Customs Organisation (WCO) to enhance the capacities of Customs officials in technical subjects, specifically, the Harmonised System (HS) and Rules of Origin. This is being done within the framework of the EU-WCO HS and Rules of Origin Africa Programmes, respectively. The aim is to develop a critical mass of regional experts to charge and control of the expanding roles and demands for customs services.
Africa can and should harness its hydrogen potential for development (Engineering News)
Harnessing the potential for renewable energy and green hydrogen production, or replacing carbon atoms with hydrogen atoms in the energy value chain, can build peace and stability in Africa, petroleum company Conex Liberia MD Amitahb Prasad has said.
“By 2035, Africa can produce 50-million tons of competitively priced green hydrogen. The expected global demand for green hydrogen is 607-million tons by 2050. In comparison, Africa’s demand for green hydrogen and its derivatives is expected to reach 10-million to 18-million tons a year by 2050, but with a production potential much above that.
“Africa can export, after meeting internal demand, between 20-million and 40-million tons a year of green hydrogen by 2050. It can therefore consume its own production of green hydrogen and have sufficient surplus to export,” Prasad emphasised during a presentation at the Hydrogen Africa conference, held in Johannesburg, in late September.
Members discuss improvements to service exports data in LDCs, COVID-19, WTO reform (WTO)
WTO members explored the impact of COVID-19 on trade in health services and improvements in service exports data in least-developed countries (LDCs) at two events on 4 and 5 October organized under the Council for Trade in Services. At a Council meeting on 3 October, they discussed implementation issues from the 12th Ministerial Conference (MC12), including the LDC Services Waiver and e-commerce, and ways of improving the functioning of services bodies in the WTO. In the Council meeting, members also continued reviewing exemptions to the WTO’s most-favoured nation principle and considered various concerns raised by members regarding the impact of certain measures, such as cybersecurity measures, on services trade.
Commodity-Dependent States Underperforming in Development, Expert Warns at Joint Meeting of Second Committee, Economic and Social Council (United Nations)
Despite many commodity-dependent countries underperforming in development and falling further into debt, the global economy lacks an adequate response to the crisis, a Nobel Laureate told the Second Committee (Economic and Financial) and the Economic and Social Council as they met today for their annual joint meeting.
Joseph Stiglitz, Professor at Columbia University, Nobel Laureate and Co-Chair of the Independent Commission for the Reform of International Corporate Taxation, cited the “natural resource curse”, noting that developing countries and emerging markets do not get compensated adequately for their natural resources, while companies tend to use their market power to avoid paying for the extraction-related environmental damage, he said.
Arlene Beth Tickner (Colombia) highlighted the two components of reindustrialization in her country, namely the move from an extractive economy to a decarbonized, productive and sustainable knowledge economy, coupled with a holistic, comprehensive agrarian reform aimed at food sovereignty.
In the second panel discussion, on the theme “Leveraging commodities for sustainable economic development — expert panel perspective”, Mohammed Belal, Managing Director for the Common Fund for Commodities, stated that the free market system is not working for all and cited an example of Côte d’Ivoire which produces 45 per cent of the world’s cocoa, but receives only 4 per cent from the $100 billion chocolate industry, while millions of its farmers survive on 78 cents per day.
In line with this, Miho Shirotori, Director of the United Nations Conference on Trade and Development’s (UNCTAD) Division on International Trade and Commodities, stressed that structural transformation strategies for commodity-dependent developing countries need to incorporate new dimensions and new parameters, arising from the decarbonization imperatives and avoiding the commodity trap with critical minerals.
Related: UNCTAD sets out pathways to ease commodity dependence for greener, inclusive growth
Aid-for-Trade monitoring and evaluation exercise gets under way (WTO)
The Aid-for-Trade monitoring and evaluation exercise was launched by WTO members at a meeting of the Committee on Trade and Development on 9 October. The aim of the exercise is to shed light on the trade and development priorities of developing economies and to examine how development finance provided by partners is addressing these needs. The feedback will lay the groundwork for the next Global Review of Aid for Trade, scheduled for June 2024.
Deputy Director-General Xiangchen Zhang emphasized the significance of this exercise. He said: “The Aid-for-Trade monitoring and evaluation exercise is a critical step to understand the trade and development priorities of developing economies and LDCs, donors, South-South partners, and regional economic communities. The evaluation underscores the WTO’s commitment to making trade more inclusive.”
Every bit helps: How policies, governance and institutions can help us spend better for climate and development (World Bank Blog)
The potential for countries to spend better is enormous. By recent estimates, a World Bank report Detox Development finds that countries spend more than $1.2 trillion on subsidies toward energy, water, and agriculture. These are inefficient at best, and often significantly counterproductive.
To achieve resilient and decarbonized development, countries will need major structural and policy change, and investments. By our own estimates, extrapolated from our published Country Climate and Development Reports (CCDRs), low- and middle-income countries (without China) will need to invest around $783 billion between now and 2030, and that’s only part of what’s needed for broader development objectives. Other estimates to achieve the SDGs are even higher. Obviously a very tall order.
But the focus on the need for countries to spend more on their development should not obfuscate another key requisite for success: countries can and need to spend better.
Energy subsidies should help poor people access modern energy. So it should follow that by simply removing them, this would hurt poor people. But because rich people spend much more on energy than do poorer people, they get the lion’s share of these benefits. Moreover, artificially low energy prices discourage all efforts to prevent waste and improve energy efficiency.
So what should governments do? Instead of trying to boost competitiveness and increase energy access through artificially low energy prices, governments can use better tools.
From climate science to global action: Who contributes most to global greenhouse gas emissions?
Introductory Remarks to the Fiscal Monitor Press Conference (IMF)
Global debt has risen persistently over the last 75 years. The mountain range got its tallest and steepest peak, in 2020, the year of the pandemic, at 258 percent of GDP. In the following two years, a strong rebound in economic activity, accompanied by an unexpected inflation surge, pushed debt lower by 20 percentage points of GDP. This brought debts about 2/3 of the way back to pre-pandemic levels. In 2022, total debt liabilities of governments, non-financial corporations and households stood at $235 trillion (238 percent of GDP).
For all countries it is becoming more challenging to balance the fiscal equation. First, debts are generally elevated and borrowing costs are rising. Given that effective interest rates on public debt lag market rates, the effect will likely be very persistent. Second, public expectations about the role of the budget have expanded over time, in part from the experience during COVID 19. Priority policy goals include the eradication of poverty and hunger, climate change, digitalization and artificial intelligence, competitiveness, and growth and much else. Third, there is a widespread aversion to taxation. So much so that it is not a great exaggeration to speak about political red lines on taxation.
Although debt vulnerabilities and risks remain elevated and fiscal restraint a much needed ingredient in the policy mix in many corners, IMF’s assessment is that the risk of a “systemic” wave of sovereign debt defaults remains low.
Quick links
Climate Crossroads Fiscal Policies in a Warming World
Pandor calls for urgent action to protect oceans, livelihoods
Reimagining Africa’s role in revitalizing the global economy