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South Africa needs to embrace more 4IR technology or fall behind (Engineering News)
Professional services and auditing firm PwC says that South Africa’s competitors are all adopting 4IR technologies and developing their workforces and, if South Africa fails to follow suit, the country’s industrial manufacturing sector will continue to fall behind and deindustrialise.
PwC believes South Africa has positioned itself as a prime manufacturing hub on the African continent, with its industrial manufacturing industry serving as a crucial multiplier of economic growth, an engine of development and a significant contributor to the country’s gross domestic product (GDP). In 2022, the sector contributed 11.4%, or R3-trillion, towards the country’s GDP. Today, about 1.5-million people work in industrial manufacturing, and are witnessing progression at a rapid pace within the sector.
“New technologies are changing the face of manufacturing. Factories are becoming increasingly connected, as machines talk to one another and to humans, and automation reaches new milestones with robots becoming more independent. “This has understandably left groups of employees jittery over the Fourth Industrial Revolution’s (4IR’s) impact on job security and changing roles,” PwC South Africa smart manufacturing lead Vinesh Maharaj says.
GITFiC draws action plan for succeeding months (Ghana News Agency)
After successfully hosting the 7th annual Ghana International Trade and Finance Conference (GITFiC) at Senchi in the Eastern region they have followed up with an action plan that will guide their activities in the coming days. A statement signed by Mr Selassi Koffi Ackom, Chief Executive Officer of the GITFiC and copied to the Ghana News Agency in Accra named creation of African Single Currency, trade investment and dispute resolution, as major issues to be tackled for its success.
The plan according to the statement will include the involvement of Existing Monetary Unions, promote research into progress and lessons by existing Monetary Unions such as WAEMU and CEMAC, to facilitate unified Single Currency and to harmonise local financial rules with AfCFTA protocols.
It said the Regional Monetary Institutes would also deal with missed deadlines on implementation of single currency, develop National Programmes to meet macroeconomic convergence criteria within the shortest possible time and set time-bound targets on single inflation rate, budget deficit reduction towards an African single currency.
Intra-Africa trade offers tea farmers golden opportunity (The Standard)
Intra-Africa trade presents a big opportunity for Kenyan smallholder tea farmers to secure an additional market and improve their income. According to Central Bank of Kenya figures, Africa accounted for only 19.4 per cent of Kenya’s Sh827.2 billion total trade value in the first three months of 2023, a slight growth compared to 18.3 per cent in 2022.
With about 1.4 billion people, Africa presents a huge market opportunity for our tea. Better still, Africa’s population is projected to reach 2.5 billion by 2050. Since assuming office, President William Ruto and his administration have held engagements with several African nations on matters trade.
The President has taken a leading role in championing removal of trade barriers among African countries to ease movement of goods, services and labour. Kenya’s profile at continental level has since, improved immensely. This is good news to our smallholder tea farmer. Kenya’s tea subsector can tap into this improved visibility to market local tea within the continent.
East Africa’s textile industry falters on low investments (The East African)
Although East Africa has a massive capacity to produce cotton textiles and apparel given the availability of raw materials and human capital, the region scores relatively low in consumption of local textile products. Over 70 percent of apparel sold in East Africa is imported second-hand clothes, while apparel companies based in Kenya export a majority of their products, particularly to the US.
Kenya and Ethiopia are the leading exporters of textiles and apparel to the US under the African Growth and Opportunity Act (Agoa), but with raw materials sourced outside at the expense of locally produced cotton and yarn.
According to the Kenya Institute for Public Policy Research and Analysis (Kippra), 70 percent of Kenyan apparel companies sell about 80 percent of their products to US markets. Nairobi’s export processing zones (EPZs) host 21 apparel companies that manufacture garments primarily for export under Agoa.
Africa, which ranks among the highest producers of raw materials for textiles and garments including cotton globally, ranks last in consumption of its own textiles, thanks to a thriving second-hand clothing industry dominated by the US and China.
Mobile money wallet users growing in Tanzania (The East African)
Mobile money wallets are gaining traction as the preferred mode of payment for business and other financial transactions in Tanzania compared to other electronic options or even cash, according to two newly released study findings. In its analysis of trade trends in Tanzania over 2022, Standard Bank (Stanbic) said Tanzania differed from other countries in Africa where cash payments have taken the lead and mobile money hasn’t really caught on as fast.
“In terms of the financial behaviour of traders (in Tanzania), when it comes to methods of payment for sales there was a shift from electronic bank transfers to mobile money. This indicates that mobile money has become more popular, and EFTs are falling out of favour for payment received from sales,” Stanbic said in its Trade Barometer report for Tanzania which became available during the last week of June.
Stanbic’s analysis effectively supported FinScope Tanzania’s 2023 report which said an increased uptake of mobile money services among adult Tanzanians, from 60 to 72 percent since 2017, has contributed “significantly” to the expansion of financial inclusion levels in the country.
Car dealers protest increase of import duty to 35 percent (Business Daily)
Car importers have protested a decision to increase import duty to 35 percent on motor vehicles, saying the new rates were implemented without public participation. Car Importers Association of Kenya chairman Peter Otieno said implementation of the 35 percent import duty on Kenyan car buyers must be halted because industry players were not consulted before implementation, which is against the Constitution.
The new import tax, he said, means that vehicle importers must adjust their sale prices upwards by between Sh50,000 to Sh100,000 for small models of cars and by more than Sh500,000 for fuel-guzzlers as they factor in the tax when selling their vehicles.
“What we mean to say is that no public participation was conducted and we cannot accept these amendments whether they have been done through Kenya or East African Community,” said Mr Otieno in a letter to the Kenya Revenue Authority (KRA). “We believe that the Constitution is supreme and the public participation was necessary as the Constitution so dictates that anything touching on the livelihood of the other, the involvement of key stakeholders is paramount.”
FDI flows from Russia to Ethiopia (New Business Ethiopia)
In recent years, Russian investors have shown an increasing interest in investing in Ethiopia, a country located in the Horn of Africa. Investment opportunities exist in sectors such as energy, mining, agriculture, and manufacturing. However, various challenges need to be addressed to fully realize the potential for increased trade and investment between the two countries.
Russian Foreign Direct Investment (FDI) in Ethiopia has been primarily focused on sectors such as energy, agriculture, manufacturing, and infrastructure development. One notable example is the involvement of Russian companies in Ethiopia’s energy sector. Furthermore, Russian investors have also shown interest in Ethiopia’s agricultural sector. Russian investors have also explored opportunities in manufacturing and infrastructure development.
Proactive collaboration needed to realise benefits of AfCFTA (SAnews)
Realising the benefits and opportunities of the African Continental Free Trade Agreement (AfCFTA) requires proactive collaboration between all levels of government and businesses, says Director of Africa Bilateral Economic Trade at the Department of Trade, Industry and Competition, Calvin Phume. Phume was addressing the AfCFTA awareness workshop, which took place in Bloemfontein, in the Free State.
Phume said beyond the policy transformation and reforms, the AfCFTA seeks to ensure inclusivity of women and youth, including youth in the rural areas, development of SMMEs and overall industrialisation of the Continent.
Phume said the AfCFTA encourages innovation, fosters competition and promotes the development of value-chains, thereby spurring industrialisation and job creation across sectors.
African Economic Outlook 2023: Opportunities abound for Asian investors in Africa, experts (AfDB)
Africa offers vast investment opportunities for Asian countries with the appropriate incentives for their private sectors, Prof. Kevin Urama, Chief Economist and vice president of the African Development Bank Group, has affirmed. Urama made the call during a webinar to discuss the 2023 edition of the African Economic Outlook report. The African Development Bank organized the session jointly with the Korea Institute for International Economic Policy (KIEP) in Sejong-Si, Korea.
The report shows that Africa has remained broadly resilient despite experiencing significant shocks, particularly from the Covid-19 pandemic, climate change, and the Russian invasion of Ukraine. From an economic growth of 3.8% in 2022, the continent is set to climb to 4.1% in 2023 and 2024, exceeding the global average by 2.9% and the European average by 1.1%, according to the report, which estimates that growth in Asia would be higher, at 4.3%.
Urama said, “Africa must play a key role in the green transition, given that it is home to 60% of the world’s unexploited arable land and the minerals needed for green growth.” He said these resources could stimulate sustainable development and investments. “This is virgin land, which can be easily used to build low-carbon infrastructure without large-scale expenditure.”
Sung-Chun Jung, vice president of KIEP, highlighted Africa’s vast potential for green growth, considering its fast-growing population and abundant renewable energy and natural resources. “The international community must provide strong support for the efforts by African countries to combat climate change, particularly through funding, technology transfers and capacity building,” he said, adding that the private sector must play a more significant role in covering the funding gap to tackle climate change.
Time to Revalue African Economies, African Development Bank Chief Says (VOA)
The year 2023 has so far not been a good one for Africa. Conflict has erupted in Sudan, deepened in the Democratic Republic of Congo and spread southward from the Sahel. Extreme weather, often attributed to climate change, has triggered devastating droughts and floods in places like Kenya and South Sudan, deepening poverty. Many African economies are struggling under massive debt.
But the head of the African Development Bank, or AfDB, prefers to focus on the continent’s promise: notably, how to better harness its assets — from its massive natural resource wealth to its large and young workforce — to fight climate change, invest in sustainable development and green and grow economies.
“I’ve been pushing that we need to revalue our countries based on their natural capital,” the bank’s president, Akinwumi Adesina, told VOA during a recent trip to Paris. “This fundamentally for me is how we are going get a lot of capital going into Africa,” he added, “by the greening of African economies, by the proper valuation of carbon” that contributes to rising emissions but can also be stored and sequestered in areas rich in land and forests.
Adesina also denounced loans repaid by depleting Africa’s rich trove of natural resources — from timber and oil and gas to diamonds and rare earth metals, like cobalt, that are key for electric vehicles — with often disastrous environmental consequences.
“Natural resource-backed loans should stop completely,” said Adesina, without naming any particular country. “They should never be on the table. They are toxic, non-transparent debt, which mortgages the future of countries.”
The Regional Economic Communities (RECs) and the African Union Development Agency (AUDA-NEPAD) recently convened in Nairobi, Kenya to review the proposed programme for their joint resource mobilization campaign. This campaign is designed to accelerate the execution of the Agenda 2063 Second Ten-Year Implementation Plan (STYIP) and foster regional integration towards the African Economic Community (AEC).
H.E Ms. Nardos Bekele-Thomas, the CEO of AUDA-NEPAD emphasized the pressing need for coordinated collective action to tackle Africa’s development challenges. She stressed the importance of partnerships, aligning priorities, and harnessing and deploying resources effectively to accelerate the achievement of Agenda 2063.
The joint sitting highlighted the significance of the Agenda 2063 STYIP as the continental strategy guiding the joint resource mobilization programme document and its implementation. The need for a continental Project Preparation Unit covering all priority sectors was also discussed along with the establishment of a comprehensive project database similar to PIDA.
African Development Bank Group President Dr Akinwumi Adesina on Sunday, outlined the Bank’s significant achievements and commitments to Africa, underscoring the Bank’s determination to mobilise resources for driving economic transformation, climate resilience, and addressing the continent’s debt challenge, among other priorities.
Addressing the 5th Mid-Year Coordination Meeting of the African Union (AU) in Nairobi, Kenya, Adesina spoke about the Bank’s significant investments, including spending $44 billion in regional and national infrastructure projects over the past seven years.
Since last year, African leaders have been calling for an additional $100 billion in SDRs for the continent, and that a share of this be re-channelled through the African Development Bank, which is a prescribed holder of SDRs. The initiative, which won plaudits from United Nations Secretary-General António Guterres and other world leaders, would enable the African Development Bank to leverage the SDRs by a factor four and deliver significant resources for the continent.
“We must decisively tackle Africa’s rising debt challenge,” Adesina urged, expressing concern at the continent’s total debt stock, which stands at $1.3 trillion. The cost of debt servicing reached $22 billion in 2022 and is expected to rise this year.
However, the Bank President said Africa needed to change its approach to debt and called for an end to all natural resource-backed loans. He said: “They are not in the interest of Africa, as they are non-transparent. They undervalue resource assets, and pawn national assets.” He said natural resource-backed loans had led to “predatory creditor lending practices that are leaving borrowing countries worse off.”
Development partners not responding appropriately to African economic transformation needs: Sisi (Ahram Online)
El-Sisi made the remarks on Sunday during the Africa Blue Economy Strategy session as part of the Fifth Mid-Year Coordination Meeting (MYCM). The president highlighted the African needs for implementing economic transformation, redirecting sectors like energy, transportation and agriculture and preserving biodiversity and the ecosystems, while also achieving the sustainable development goals.
El-Sisi presented Egypt’s vision about what is needed to achieve economic transformation. Equity and justice must be the focus. The required transformation must take into consideration economic and social aspects. Unilateral measures that impact international trade flows must be avoided, especially with regard to exports of the developing and African states.
Regional cooperation must be enhanced to ensure the development of capabilities for preserving shared ecosystems and also to ensure that the states achieve integrated benefits and contain any negative transboundary effects.
We can build a thriving Africa with our resources (The Star)
President William Ruto has said it is possible to build a more integrated, prosperous, and stable Africa using the continent’s resources. He said this will be done by first reforming the African Union to empower it and enable its performance to align with its goals. “We must free the AU from constraints so that it can pursue urgent and critical interventions in the continent using internally generated resources,” he said.
He spoke during the 5th Mid-Year Coordination Meeting of the African Union, the Regional Economic Communities, the Regional Mechanisms, and the African Union Member States at the UN Complex in Gigiri, Nairobi. Ruto regretted that over five decades after independence, the continent still relies on external funding to drive its agenda. He frowned upon the financing of over 60 per cent of AU programmes by overseas partners.
“The chronic dependence on well-meaning partners is inconsistent with this aspiration,” he added. The President said African integration will open doors for unprecedented transformation, adding that the African Continental Free Trade Area (ACFTA) will be the world’s largest free-trade area, bringing together 54 countries.
AU: Tinubu rejects fresh scramble for Africa, pledges to strengthen ECOWAS (Tribune Online)
President Bola Tinubu on Sunday in Nairobi, Kenya strongly rejected the notion of a new scramble for Africa as various countries including China, United States, Russia, France and Iran, are establishing new blocs between them and the continent.
Speaking at the Fifth Mid-Year Coordination Meeting (5th MYCM), he called for good governance to ensure a prosperous future for Africa, free from the exploitations of the past. “As Africans, we forge ahead no matter the barriers thrust before us. The world we inhabit is often unkind and uncertain. Past history and current global difficulties argue against our future success. “Lessons of the past few years teach us that the world economy can be disrupted in ways that halt progress and invite downturn. Our nations can suddenly find themselves in dire situations if we choose to be passive observers of our fate.
“We sit here in meaningful discussion of vital economic matters. Yet, it will be impossible to bring full meaning to what we attempt unless we give due consideration to the instability and conflict that now scar many of our nations. “The fullness of the integration we seek will elude us as long as several of our nations stand in the midst of violence and war. “The trade and commerce we talk of today refers to valued goods and services that improve life. The trade and commerce these nations suffer is of destruction and disorder that takes lives and steals opportunity.
Africa urged to strike a balance between green hydrogen exports, developing local industries (Engineering News)
Africa has the potential to become a major player in the global green hydrogen economy, with the potential to generate more than 1 000 GW of renewable energy and could produce up to 5 000 megatonnes of green hydrogen a year at less than $2/kg, says business advisory company Frost and Sullivan Africa energy consultant Patrick Prestele.
The growth potential of green hydrogen presents significant opportunities for Africa. With abundant renewable energy resources, such as solar, wind and hydropower, the continent can produce vast amounts of cost-competitive green hydrogen for various offtaker markets and industries. “This presents a tremendous growth opportunity for the continent, as green hydrogen is expected to play a crucial role in the global energy transition going forward,” Presele says.
Africa's strategic geographic location favours its position as a hub for green hydrogen exports to global markets. However, there are concerns about Africa becoming a "battery" for the rest of the world. “If the continent heavily relies on exporting green hydrogen alone, it could miss out on the benefits of local value addition and industrialisation. Therefore, African countries must strike a key balance between exporting hydrogen and developing local industries that can benefit from this renewable energy source in the long-term,” he emphasises.
Africa’s green growth market size is at $2.97 trillion (Nairametrics)
The African Development Bank (AfDB) has said that Africa’s green growth market size is at $2.97 trillion. Kevin Chika Urama, AfDB’s Chief Economist and Vice President of Economic Governance and Knowledge Management said this during his presentation at the Mobilizing Private Sector Financing for Climate and Green Growth in Africa to the South Korean Institute for Economic Policy (KEIP) in South Korea. Urama highlighted the fact that green growth positively correlates with real gross domestic product (GDP) growth, climate resilience, and readiness.
While addressing Africa’s lack of green investments, particularly from the private sector, Urama said that the continent needs up to $2.7 trillion cumulatively (that is $242.4 billion annually), over 2020–30 to implement its updated nationally determined contributions (NDCs). He also said that out of the cumulative green bonds’ issuance estimated at $2.2 trillion globally between 2006 and 2022, Africa accounted for only about 0.2% (or $4.7 billion), which is the lowest among world regions.
Africa should harness investment and tapping vast green energy resources to drive sustainable industrialization and trade across the continent, the Economic Commission for Africa (ECA), Acting Executive Secretary, Antonio Pedro, has said.
Addressing the 43rd Ordinary Session of the African Union Executive Council in Nairobi, Kenya Mr. Pedro noted that the African continent had significant resources to power a green and sustainable industrialization and make the African Continental Free Trade Area (AfCFTA) work, but these investments must be prioritized. Mr. Pedro stressed that enabling infrastructure, strong productive capabilities, expanding exports and intra-African trade through the AfCFTA must be accompanied by effective industrialization and trade policies to stimulate private sector investments.
Why domestic solar manufacturing could turbocharge Africa’s energy transition (Energy Monitor)
In May, the International Energy Agency (IEA) released a special report: The State of Clean Technology Manufacturing – An Energy Technology Perspectives Special Briefing. The report offers an “update on recent progress in clean energy technology manufacturing in key regions”, says the IEA, with the aim of “keep[ing] decision makers informed of investment trends and the impact that recent industrial strategies are having in these highly dynamic sectors”.
For decades, experts have made the case that challenges around establishing industrial bases in Africa are too profound for it to be worthwhile. According to Amir Bahr, programme manager at UN Energy, the challenges include: “Limited access to finance, lack of supportive policy and regulatory environment, infrastructure constraints, limited local supply chains, and a lack of skilled workforce and technical expertise.”
Olumide Abimbola, from the Africa Policy Research Institute (APRI), agrees that “production factors, supply chain concerns, a lack of incentives, regulations, complex business environments” has made establishing renewable energy manufacturing capabilities complicated in many African nations. However, despite a complicated investment environment, manufacturing on the continent is growing fast. Manufacturing in sub-Saharan Africa has increased in value fourfold since the turn of the century – much faster than the rest of the world.
When it comes to solar manufacturing specifically, a recent report from the UN-backed international organisation Sustainable Energy for All finds that solar module manufacturing in some African countries is already cost competitive with equivalent manufacturing in China.
African Leaders At Business Summit Call For Extension Of Trade Deal With US (iAfrica)
Leaders at the U.S.-Africa Business Summit in Botswana have urged renewal of the long-standing Africa Growth Opportunities Act (AGOA).The trade deal gives some African countries preferential or even tax-free access for their exports to the U.S. market. The agreement is due to expire in 2025, and African delegates at the summit want the deal renewed.
“It is also our earnest hope that in consonance with the letter and spirit of the U.S.-Africa Leaders Summit, the Biden administration will renew the African Growth and Opportunity Act initiative, which expires in 2025,” he said. “The AGOA renewal now, with expanded mandates, will give a strong signal and confidence to the markets and serve as a catalyst for Africa’s industrialization and inclusion into the global value chains.”
Florie Liser, chief executive and president of the Corporate Council on Africa, which organizes the U.S.-Africa Business Summit, said there is a need to examine AGOA in light of an agreement known as the African Continental Free Trade Area.”A lot has changed” in Africa and beyond since AGOA came into being, she said. “The advent of the African Continental Free Trade Area is fostering much closer economic and commercial integration on the continent, which will spur the creation of regional and continental value chains and increase value added across key sectors. In many ways, the question is how best we can support this development.”
United States AGOA and Private Sector Collaboration as Backbone for Strengthening Relations with Africa (Modern Diplomacy)
With over 1300 delegates at the US-African Business Summit held mid-July in Gaborone, Botswana, the main focus was on mapping out strategies to strengthen trade and economic relations between the United States and Africa. Majority of the speakers emphasized reviewing and widening collaboration between governments, while others underlined the importance of the private sector as the key driver in achieving robust economic growth in African countries.
African leaders together with corporate business executives and majority of the participants called for extension of the Africa Growth Opportunities Act (AGOA) which grants African countries the freedom to export products tax free into American market. It is the traditional market from where most of them earn revenues for their national budget.
Chairman of the Board of Directors for the US Corporate Council on Africa (CCA), Dr. Jeffrey L. Sturchio, underlined the importance of collaboration between governments and private sectors, describing partnerships as vital ingredient for achieving robust trade and economic targets during the previous years.
BRICS Business Council aims to better balance SA’s trade patterns (IOL)
The BRICS Business Council would like to even out some of the uneven trade patterns that exist, according to Stavros Nicolaou, the head of the council. Nicolaou said South Africa exported more raw materials and imported more finished manufactured goods.
“That is even with the BRICS countries. We would like to see more of our finished products being exported and less of the finished products being imported. We need to even out the trade imbalances that exist,” he said in an interview. “In the period 2017 to 2021, there has been a 44% growth in trade across the five BRICS countries,” he said.
The council’s mandate is to promote and enhance economic growth across the five BRICS countries and to improve trade and investment between the five countries. Nicolaou said the theme of the conference was Africa and BRICS: promoting multilateralism.
UN chief regrets Russia’s decision to withdraw from grain deal (UN News)
Following weeks of negotiations, the UN-brokered accord that facilitated the export of more than 30 million tonnes of Ukrainian grain to global markets via three Black Sea ports expired on 17 July. “Today’s decision by the Russian Federation will strike a blow to people in need everywhere,” said Mr. Guterres, speaking to journalists at UN Headquarters in New York.
The Black Sea initiative was agreed by Russia, Ukraine, Türkiye and the UN in Istanbul last July along with a parallel accord between the UN and Russia on grain and fertilizer exports from that country. By its decision, Russia has also withdrawn security guarantees for ships navigating in the northwestern part of the Black Sea.
The grain initiative and the Memorandum of Understanding with Russia were “a lifeline for global food security and a beacon of hope in a troubled world,” he said. “At a time when the production and availability of food is being disrupted by conflict, climate change, energy prices and more, these agreements have helped to reduce food prices by over 23 per cent since March last year,” he added.
Statement by WTO Director-General
“The abrupt termination of the implementation of the Black Sea Grain Initiative is a matter of grave concern. I share UN Secretary-General Antonio Guterres’s deep regret and disappointment. Global food security should not become a casualty of war. Ukraine and the Russian Federation are important suppliers of food, feed, and fertilizer to international markets. People in poor countries struggling with food and energy price inflation stand to be hit hardest by the termination of the initiative: prices for future delivery of wheat and corn are already rising. Therefore, I urge all parties to make every effort to come back to the negotiating table.”
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Transnet container terminals remain optimistic of strong citrus season finish (Engineering News)
Average year-on-year comparisons of citrus handling volumes show a 9.2% volume increase in the Eastern Cape region and, despite heavy rains across the country, the Eastern Cape Container Terminals are handling higher citrus volumes than the previous three years mid-season, said State-owned Transnet Port Terminals (TPT).
“With exception of the Eastern Cape, we have noted a slow start to the citrus season in general. There are a number of factors at play, including lower crop yields owing to weather, as well as the European Union’s cold treatment legislation, which have reduced export opportunities,” said TPT commercial and planning GM Michelle van Buren Schele.
However, Transnet remained optimistic of a strong, albeit later, finish with three months before end of season, she added. “Volumes are starting to pick up in Durban after delayed production of valencia and mandarin fruits. This will also contribute to peak export flows,” she said. The citrus season is one of South Africa’s biggest, as the country ranks among the top suppliers of citrus fruits in the world. During this season, TPT handles vessels destined for over 100 markets.
Regional Collaboration Consolidates Angola’s Position as an Oil and Gas Hub (ZAWYA)
One of Africa’s major oil and gas producers, Angola is demonstrating commendable efforts in prioritizing regional collaboration to ensure energy security and stimulate growth across the regional energy sector. By leveraging its position, resources and experience, Angola is forging strategic partnerships with neighboring countries, signing significant agreements, and initiating cross-border collaborations. These endeavors serve as an inspiring example for other African nations to enhance cooperation and foster sustainable development.
In a notable development, Angola’s signing of a Memorandum of Understanding (MoU) with the Democratic Republic of the Congo (DRC) on July 13 for the joint development of offshore Block 14 marks a significant milestone in the country’s pursuit of energy security. Angola, for its part, has demonstrated its commitment to strengthening cooperation and promoting sustainable development and growth within the energy sector. This strategic alliance will not only boost the energy sectors of both countries but also promote economic growth and stability across the continent.
IMF Staff Completes 2023 Article IV Mission to Botswana (IMF)
“Following a strong recovery of almost 12 percent growth in 2021, Botswana’s economy grew by 5.8 percent in 2022, significantly above the long-run average of 4 percent. The recovery from the pandemic primarily reflects elevated mining production, but also robust manufacturing and construction.
“Going forward, growth is projected to slow to 3.8 percent in 2023. The expected slowdown reflects a decline in diamond production and prices this year, with weaker global growth likely to depress other exports. This will be partly offset by growth in the non-mining sector, with a fiscal relaxation supporting household consumption and public investment. Growth is forecast to rebound gradually in 2024 and 2025, to above 4 percent, due to higher prices and quantities of diamonds produced.
Namibia is open for business says Mbumba at 2023 U.S.-Africa Business Summit (Namibia Economist)
The Vice President Dr Nangolo Mbumba reiterated that Namibia is open for business and that it welcomes investors interested in exploring potential prospects for shared economic growth. Mbumba emphasized the government’s unwavering commitment to creating a conducive environment for business, noting that “we are doing this by removing legal or administrative impediments, and ensuring that our trade and investment landscape remains fit for purpose.” Mbumba made these remarks at the U.S.-Africa Business Summit in Botswana on Thursday, where he led the Namibian delegation.
“Namibia is a land of vast potential that offers trade and investment opportunities in multiple sectors beyond energy. From tourism, mining, agriculture and agro-processing, transport and logistics, amongst others, a key objective for Namibia is to leverage the existing capital-intensive industries to set the basis for productive diversification towards industries that can employ more people with higher capabilities and jump-start the economy,” he said.
Following the positive economic growth observed in 2022, Equatorial Guinea is projected to re-enter recession this year with an average real GDP growth of about -4% over the period 2023 to 2025.
While the country registered a fiscal and current account surplus in 2022 amid the recovery of the hydrocarbon sector, the projected gradual decrease in oil production and lower commodity prices are expected to deteriorate both the fiscal and external balances over the medium term. The medium-term outlook is subject to downside risks, including lower-than-expected oil production and prices, increases in international food prices, and a further tightening of global financial conditions.
Cameroon predicts nearly CFAF200bln YoY drop in oil revenues in 2024 (Business in Cameroon)
On July 13, 2023, the 2024 budget preparation workshop was officially opened, in Yaoundé, by Finance Minister Louis Paul Motaze (photo). During his opening address, he described national and international uncertainties that could lead to a significant drop in Cameroon’s oil revenues in 2024. “The uncertainties weighing on the global economy call for caution regarding the forecast of a substantial increase in domestic revenues in 2024, in a context of falling prices and a crumbling potential for the mobilization of oil revenues, which are projected - in the latest budgetary framework - to drop by more than CFAF195 billion compared to 2023,” Minister Motazé said.
The projections need to be taken with caution considering the uncontrolled fluctuations in the dollar exchange rate and even crude oil prices, which may evolve favorably in the coming months, as long as the war between Russia and Ukraine persists. Apart from oil revenues, budget support and funds raised are also expected to drop in 2024.
Cabo Verde’s Sustainable Growth relies on Economic Diversification and Resilience to External Shocks (World Bank)
In 2022, Cabo Verde witnessed strong economic growth, led by the sectors of tourism, transport, and commerce. This surge in economic activity boosted the country’s GDP and contributed to poverty reduction. However, the need for economic diversification and for resilience to external shocks, particularly climate related, posed significant threats to the sustainability of growth. These are the key issues tackled by the 2023 Country Economic Memorandum and the 2023 Economic Update, two new reports published by the World Bank.
Cabo Verde has achieved significant social and economic progress since its independence in 1975, despite its geographical challenges and limited resources. However, there are still challenges that need to be addressed to ensure sustainable and inclusive long-term economic growth. Three priorities discussed in the CEM are (i) the importance of increasing firm-level productivity to generate more and better jobs; (ii) the need to reduce economic fragmentation by reduction transportation costs among islands; and (iii) the significance of building economic resilience to climate shocks.
“By implementing the recommendations outlined in these reports, in line with the national development policy (PEDS II), Cabo Verde has the potential to gradually diversify its economy, improve firm-level productivity, and prepare better for the impacts of climate shocks. These efforts will foster sustainable and inclusive growth, reduce poverty, and promote shared prosperity for the country and its people”, said Eneida Fernandes, World Bank Resident Representative in Cabo Verde.
Seychelles signs SADC Charter for fisheries monitoring and control centre (Seychelles News Agency)
Seychelles is set to partake in more regional cooperation in its fight against illegal, unreported, and unregulated (IUU) fishing with the signing of the Charter for the SADC Fisheries Monitoring Control and Surveillance Coordination Centre (MCSCC).
The SADC Council of Ministers approved the Charter in August 2017 in Pretoria, South Africa, and entered into force on April 8, 2023. The Charter aims to provide a legal framework for establishing and operationalising an institution that will coordinate measures relating to fisheries monitoring control and surveillance (MCS) in the SADC region.
Through the years, Seychelles has made progress in monitoring, control and surveillance matters by improving the implementation of trade-related measures to prevent IUU fishing and reorganising the setup of the MCS department to allow the performance of crucial international obligations.
Digitalisation, manufacturing to take centre stage at 7th Africa Singapore Business Forum (Businessday NG)
Driving Africa’s growth through digitalization, manufacturing and sustainability will take the centre stage at the 7th Africa Singapore Business Forum (ASBF) orgainsed by Enterprise Singapore, the Singaporean agency championing enterprise development. This year’s edition themed ‘Driving Africa’s Growth through Digitalisation, Manufacturing and Sustainability’ is schedule to be held between the 29th to the 31st of August in Singapore.
According to the organisers, the theme is in line with the opportunities arising from Africa’s digital boom, sustainability development, and the boost in manufacturing brought about by the African Continental Free Trade Area agreement.
“Singapore companies are drawn by its potential and are eager to explore new opportunities for collaboration in areas such as manufacturing and digital solutions. “Singapore companies can also share knowledge and innovative solutions with Africa, contributing to the continent’s development and creating mutually beneficial partnerships. “We also welcome African companies to leverage our established business ecosystem and connectivity to set up their regional base in Singapore and expand into Asia,” Rahul Ghosh, director for Middle East and Africa, Enterprise Singapore said.
Ministerial meeting of the African Union Commits to More Continental Trade and Integration (AU)
The African Union 5th Mid-Year Coordination Meeting bringing together Regional Economic Communities (RECs), Regional Mechanism (RMs) and member states kicked off on the 13th of July 2023 with the Ministerial Meeting of the Executive Council.
H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission, in a statement read on his behalf by his Deputy, Dr. Monique Nsanzabaganwa, lauded the satisfactory progress of the implementation of the African Continental Free Trade Area, evidenced by among others, the successful conclusion of negotiations on rules of origin, the strengthening of infrastructure through the corridor approach, and the involvement of the private sector.
H.E. Dhoihir Dhoulkamal, Minister of Foreign Affairs and International Cooperation of the Republic of Comoros and the Chairperson of the African Union’s Executive Council for 2023, noted that the Protocol to the Treaty Establishing the African Economic Community Relating to Free Movement of Persons is a catalyst to stimulate the potential of the AfCFTA to benefit millions of Africans.
Mr. Antonio Pedro, the Acting Executive Secretary of the United Nations Economic Commission for Africa stated that industrialization would accelerate Africa’s structural transformation with a potential to contribute an increased share of tradable goods in total exports, more productive and decent jobs, value addition, larger volumes of intra-African trade, greater product complementarity between African economies and the emergence of strong and well-linked regional value chains to break Africa’s dependence on the export of raw materials. He emphasized that industrialization backed with actionable trade policies would attract private sector investments for sustainable development.
NEPAD, AUDA partner to combat food insecurity (The Nation)
The African Union Development Agency (AUDA) and the New Partnership for Africa’s Development (NEPAD) have disclosed plans to establish strong partnerships to ensure that farmers adhere strictly to African Union Agenda 2063 goals. This, the agency said, is in conformity with the Federal Government Agricultural Revolution for Food Sufficiency in the country.
The National Coordinator (AUDA-NEPAD)/APRM, Gloria Akobundu disclosed this at a one day national workshop on mainstreaming of African Union Comprehensive African Agricultural Development Programme (CAAPM) held in Owerri, the Imo State capital.
Also, speaking, the state Coordinator of the Nigeria Export Promotion Council (NEPC)-Anthony Ajuruchi, argued that the non-oil export sector holds immense potential for driving economic growth, diversification and sustainable development in Africa.
Ajuruchi said that it had become crucial for the nation to shift focus to non-oil sectors such as agriculture, manufacturing, solid minerals and services, stressing that the transition had become vital to reduce dependency on oil, create employment opportunities and foster inclusive economic growth.
Infrastructure experts have reiterated the need for conducive policy and business environment in Africa, which they say, is a critical first step to attract the private sector in urgently needed renewable energy investments needed for economic and social development.
“We must address the critical challenge of our policy and regulatory environment that often inhibit scaled investment and effective private sector participation,” Mr. Lisinge said in opening an event on Advancing Regulatory Improvements to Accelerate Private Sector Investment to Meet SDG7 and Energy Transition Goals in Africa on the sidelines of the High-Level Political Forum on Sustainable Development in New York this week.
“We must close the energy access gap that has left more than 600 million people in Africa without access to electricity,” Mr. Lisinge stressed, noting that the climate goal of 1.5 0C warming calls for significant changes in how energy is produced and consumed globally and in Africa.
African Union’s inclusion in G20 could become a reality: Officials (Deccan Herald)
There has been no disagreement thus far among various G20 nations over the African Union’s inclusion into the global group, officials aware of the development said on the sidelines of the 3rd Sherpa Meeting being held in Hampi.
Bringing the AU to the table has been one of the main agendas India has been pushing for after Prime Minister Narendra Modi wrote to his counterparts proposing the union be given full membership of the grouping at its September summit in New Delhi.
The push for AU’s inclusion has received significant momentum after India hosted the ‘Voice of the Global South Summit’ earlier this year to ascertain the needs of developing nations that it could pitch to leading countries during its G20 presidency. Major economies including the US, France, Japan, and China, have also backed the proposal.
Members review how to boost developing economies’ participation in global trade (WTO)
WTO members discussed how to better integrate developing economies and least-developed countries (LDCs) into the global trading system at a meeting of the Committee on Trade and Development on 11 July.
Members continued discussions on “policy space” for developing economies to promote industrial development on the basis of submissions by the WTO’s African Group. A first submission, circulated earlier this year, makes a case for rebalancing trade rules to promote industrialization and to address emerging challenges, such as climate change, concentration of production and digital industrialization.
The WTO Secretariat presented the recently-launched Global trade data portal, a tool intended to complement customs data and enhance market transparency. The portal provides access to real-time data on trade, allowing users to monitor supply chain activities and providing advance warning of potential disruptions.
Why the shipping industry’s increased climate ambition spells the end for its fossil fuel use (The Conversation)
A revised strategy to reduce global shipping emissions has emerged from two weeks of intense talks in London. It marks a significant increase in the industry’s climate ambition. The revised strategy has been criticised for not being ambitious enough. However, the forecast growth in global trade and the world’s shipping fleet means the reductions required of individual ships are much greater than the overall greenhouse gas emission targets.
The revised strategy was negotiated at the London headquarters of the International Maritime Organization (IMO), the United Nations agency that regulates shipping. Backed by the Science-Based Targets initiative, several Pacific Island states, New Zealand, the US, the UK and Canada had proposed emission cuts of at least 37% by 2030, 96% by 2040 and to absolute zero by 2050. (An initial strategy adopted in 2018 aimed to reduce shipping emissions by at least 50% by 2050.)
Shipping volumes have grown by more than 50% since 2008, with further growth expected. Increasing numbers of ships mean average emission reductions per ship will need to be 54-60% by 2030 and 86-91% by 2040.
Before the revised strategy, IMO policy focused on improving the energy efficiency and carbon intensity of new and existing ships. These tools failed to rein in shipping emissions.
UN scrambles to save Black Sea grain deal, with EU help, ahead of Monday deadline (Reuters)
The European Commission is helping the United Nations and Turkey try to extend a deal allowing the Black Sea export of Ukraine grain and is open to “explore all solutions,” a European Union spokesperson said on Thursday, ahead of the deal’s possible expiration on Monday.
The U.N. and Turkey brokered the Black Sea Grain Initiative with Russia and Ukraine in July 2022 to help alleviate a global food crisis worsened by Moscow’s invasion and blockade of Ukrainian ports. Ukraine and Russia are among the world’s leading grain exporters.
U.N. Secretary-General Antonio Guterres proposed in a letter to Russian President Vladimir Putin on Tuesday that Moscow allow the Black Sea grain deal to continue for several months to give the EU time to connect a Rosselkhozbank subsidiary to SWIFT, two of those sources familiar with discussions told Reuters.
“Governments should rethink how they can allocate their existing public budgets to make them more cost-effective and efficient in reducing the cost of nutritious foods, and increasing the availability, accessibility and affordability of healthy diets,” FAO Director-General QU Dongyu said at a side event held on the margins of the United Nations High-Level Political Forum on Sustainable Development (10-19 July).
Higher prices have increased the global food import bill to an estimated all-time high, surpassing $1.94 trillion, further stressing the balance of payments and increasing debt burdens, especially for net-importers of food. The participants touched upon the need to provide the enhanced support to the most vulnerable countries whose resources and budgets are under serious constraints ensuring that they have financial tools and safety nets especially at times of shocks (climate, economic, conflict and other unexpected factors) that result in higher prices.
They also agreed that global agrifood systems needed to be urgently transformed through effective policies, targeted investments and strengthened institutions. These actions are crucial since they are key to creating the conditions for an inclusive and sustainable transformation of economies and societies, and to achieving the Sustainable Development Goals (SDGs) by 2030.
122 million more people pushed into hunger since 2019 due to multiple crises, reveals UN report (FAO)
Over 122 million more people are facing hunger in the world since 2019 due to the pandemic and repeated weather shocks and conflicts, including the war in Ukraine, according to the latest State of Food Security and Nutrition in the World (SOFI) report published today jointly by five United Nations specialized agencies. If trends remain as they are, the Sustainable Development Goal of ending hunger by 2030 will not be reached
The 2023 edition of the report reveals that between 691 and 783 million people faced hunger in 2022, with a mid-range of 735 million. This represents an increase of 122 million people compared to 2019, before the COVID-19 pandemic.
“There are rays of hope, some regions are on track to achieve some 2030 nutrition targets. But overall, we need an intense and immediate global effort to rescue the Sustainable Development Goals. We must build resilience against the crises and shocks that drive food insecurity-from conflict to climate, said UN Secretary-General António Guterres through a video message during the launch of the report at the UN Headquarters in New York.
Fisheries subsidies negotiations ramp up ahead of text-based discussions in the autumn (WTO)
WTO members demonstrated an increased sense of urgency in their discussions at the fourth of a series of “Fish Weeks” held on 10-14 July regarding the second wave of fisheries subsidies negotiations, the chair, Ambassador Einar Gunnarsson of Iceland, reported at the end of the week. Members’ submissions and discussions are helping pave the way for text-based negotiations in the autumn ahead of the 13th Ministerial Conference to be held in February 2024, the chair said.
“Members came to this week with deepened reflections on various ideas on the proposals and texts on the table. It was clear that members have devoted considerable attention to all the elements before them. This effort remains a real indication of the sense of urgency and seriousness with which we are approaching this process,” Ambassador Gunnarsson said at the 14 July meeting of the Negotiating Group on Rules, bringing to a close the fourth Fish Week before the August break.
Second update of information note on integrated health, trade, IP response to COVID-19 launched (WTO)
The second update traces developments up until 17 May 2023. It provides an overview of the challenges encountered during the COVID-19 pandemic as well as the responses and initiatives taken to deal with the pandemic. Topics covered include the impact of COVID-19 on health systems and responses at the global level, policy challenges, meeting the demand for health technologies and medical services, international trade, intellectual property aspects, international initiatives to support research and development and equitable access, regulatory responses, transparency and mapping the way forward.
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UK-SA Tech Hub renews funding for South African startups group (Engineering News)
The UK-SA Tech Hub, an initiative of the British High Commission (Embassy) in South Africa, has announced that it will provide a second round of funding for South Africa’s Startup Act Movement (SUA). “Our role is to support South Africa’s high-growth startups – whether in the tech industry or by enabling SMEs [small and medium-sized enterprises] in rural and township communities to become tech-enabled businesses – to maximise the value and impact they have on the South African economy and job creation,” explains UK-SA Tech Hub director Milisa Mabinza.
Kenya to Abolish Visas for AU Member States (Foundation For Investigative Journalism)
By the end of the year, Kenya will open its borders to all African Union member states. Alfred Nganga Mutua, the cabinet secretary for Foreign & Diaspora Affairs of the Republic of Kenya, made this known in his welcome address at the 43rd ordinary session of the African Union Executive Council in Nairobi on Thursday.
“Kenya is committed to progressively, and we are moving very fast, to the end of this year, to abolish visas to citizens from African Union member states to make it easier to invest and do business in Kenya and across the continent,” Mutua said.
This, according to him, was Kenya’s contribution to the union’s free continental trade aspirations. “We are going to open the borders of Kenya. We do not fear our fellow Africans,” he said.
To roar again, Nigeria must unleash an industrial revolution, says African Development Bank chief (AfDB)
Nigeria urgently needs to revolutionise its industrial sector to become an economic giant. When it does, this will transform the lives of its people and Africa as a whole, the President of the African Development Bank, Dr. Akinwumi Adesina, said in Lagos on Thursday. Giving examples from some countries, he said this was doable.
Adesina said: “Malaysia and Vietnam have used aggressive horizontal and vertical diversification of industrial production to move from low-value to high-value market products. The result is reflected in the comparative wealth of the three countries. While the per capita export value is $7,100 for Malaysia and $3,600 for Vietnam, it is only $160 for Nigeria.”
Speaking on the theme ‘The Day the Lion Roared: making Nigeria a global industrial and economic giant,’ Adesina emphasised that Nigeria’s prosperous future could only be secured by strongly supporting the private sector to unlock wealth that would lift all its people.
Sierra Leone Taps Fast Payment Systems to Promote Fast Progress with Financial Inclusion (World Bank)
Earlier this month, Sierra Leone’s President Bio announced the launch of the National Payment Switch. This new financial infrastructure, which is part of a $12 million funding program from the World Bank, interconnects six commercial banks and enables payments interoperability among banks, microfinance institutions, mobile money operators and financial technology firms.
In the first phase of what President Bio defined as a “major step forward in this era of the fourth industrial revolution”, the new infrastructure will cover processing of card transactions carried out through point-of-sale and Automated Teller Machines managed by different financial institutions.
Walton Gilpin, managing director of Rokel Commercial Bank and chair of the Sierra Leone Association of Commercial Banks said the new payments infrastructure will advance financial inclusion and encourage a greater share of formal economic activity.
Thailand pursues FTA with East African community (Pattaya Mail)
Thailand has set its sights on establishing a free trade agreement (FTA) with the East African Community (EAC), in a bid to enhance trade and investment opportunities.
According to Department of Trade Negotiations Director-General Auramon Supthaweethum, discussions regarding an FTA recently took place between Thai officials and Kenyan Ambassador to Thailand, Kiptiness Lindsay Kimwole. The primary objective is to boost trade ties between Thailand and the seven-nation EAC bloc, which includes Burundi, the Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania, and Uganda.
Recognizing the potential of the African market, Thailand’s Commerce Ministry has received requests from the private sector to pursue FTAs with African countries. Auramon expressed Thailand’s keen interest in an FTA with the EAC and outlined plans to convene a joint trade committee meeting with Kenya in the first quarter of next year. The meeting, to be hosted by Kenya, will serve as a platform to discuss trade and investment matters.
African Economic Outlook 2023: Opportunities abound for Asian investors in Africa, experts (African Business)
Africa offers vast investment opportunities for Asian countries with the appropriate incentives for their private sectors, Prof. Kevin Urama, Chief Economist and vice president of the African Development Bank Group has affirmed.
Urama made the call during a webinar to discuss the 2023 edition of the African Economic Outlook report. The African Development Bank organized the session jointly with the Korea Institute for International Economic Policy (KIEP) in Sejong-Si, Korea.
The report shows that Africa has remained broadly resilient despite experiencing significant shocks, particularly from the Covid-19 pandemic, climate change, and the Russian invasion of Ukraine. From an economic growth of 3.8% in 2022, the continent is set to climb to 4.1% in 2023 and 2024, exceeding the global average by 2.9% and the European average by 1.1%, according to the report, which estimates that growth in Asia would be higher, at 4.3%.
Urama said, “Africa must play a key role in the green transition, given that it is home to 60% of the world’s unexploited arable land and the minerals needed for green growth.” He said these resources could stimulate sustainable development and investments. “This is virgin land, which can be easily used to build low-carbon infrastructure without large-scale expenditure.”
Africa: U.S.-Africa Business Summit Looks to Enhance Africa’s Value in Global Chains (allAfrica)
Over 1,000 participants from the U.S. and across the African continent, including government officials, private sector executives, investors, and multilateral stakeholders, are meeting in Botswana’s capital city of Gaborone at the U.S.-Africa Business Summit to explore investment opportunities and strengthen business relationships between Africa and the U.S.
“The U.S. is focused on what we will do with African nations and with African people and not for African nations and people as we work to deepen and expand our partnerships, amplify African voices, and support the empowerment of Africans,” said Scott Nathan, Chief Executive Officer of the United States, International Development (DFC).
The 15th U.S.- Africa Business Summit, hosted by the Corporate Council on Africa (CCA) and the Government of Botswana in Gaborone, is under the theme Enhancing Africa’s Value Chains.
US agency sees Lobito rail corridor helping to diversify critical minerals supply chains (Engineering News)
US International Development Finance Corporation (DFC) CEO Scott Nathan has reiterated the American government’s interest in helping to finance the Lobito rail corridor, linking the copper and cobalt mining regions of the Democratic Republic of Congo (DRC) and Zambia to Angola’s Lobito port. Nathan, who is heading the US Delegation to the US-Africa Business Summit in Botswana this week, made specific reference to the corridor during a virtual media briefing hosted on the sidelines of the summit.
Responding to a question related to what progress had been made since the signing, in December, of a memorandum of understanding (MoU) signalling America’s support for the joint development by DRC and Zambia of a battery metals supply chain, Nathan made a direct link between the MoU and the Lobito corridor.
African trade ministers push for revamp of AGOA trade act (Semafor)
African trade ministers are urging the United States to overhaul the sweeping trade deal that has opened the US market to African products and renew it this year rather than waiting until the duty-free pact expires in 2025.
Renewing the African Growth and Opportunity Act AGOA immediately would remove uncertainty about the future of the pact and allow for suppliers and partners to better plan and maintain investments in African economies, ministers said during this week’s U.S.-Africa Business Summit in Botswana.
“We are speaking with the same voice that AGOA should be extended,” said Botswana’s trade minister Mmusi Kgafela at a summit panel on Wednesday. He said he and other African ministers want “an indefinite period” for the act. This would do away with the uncertainty involved around the current 10-year renewal cycle.
“There is a compelling case to reauthorize the AGOA now,” wrote Daniel F. Runde and Thomas Bryja for the Washington DC-based Center for Strategic and International Studies (CSIS) in a new paper on calling for AGOA to be renewed.
Atlantic Council fellow Frannie Léautier, who launched an AGOA report on Wednesday said the act “should be renewed by the US Congress for at least a ten-year period as soon as possible.”
There was also a call by ministers yesterday for the AGOA rules to be streamlined and made less cumbersome in order for more countries to be able to benefit more from the program.
Weak Global Economy, High Inflation, and Rising Fragmentation Demand Strong G20 Action (IMF Blog)
When the G20 finance ministers and central bank governors meet in Gandhinagar next week, the world will be looking for joint action to address rising economic fragmentation, slowing growth, and high inflation. Agile multilateral support is vital to tackle common challenges posed by debt vulnerabilities, climate change, and limited concessional financing—especially for countries hit by shocks not of their making.
In April, the IMF projected global growth at 2.8 percent in 2023, down from 3.4 percent in 2022. The bulk of it–over 70 percent – is expected to come from the Asia-Pacific region.
Yet, recent high frequency indicators paint a mixed picture: weakness in manufacturing contrasts with resilience in services across the G20 countries and strong labor markets in advanced economies. At the same time, financial fragilities uncovered by tight monetary policy require careful management—particularly as restoring price stability remains a priority.
The IMF forecast for global growth over the medium-term is around 3 percent—well below the historical average of 3.8 percent during 2000-19. Moreover, economic fragmentation will both undermine growth and make it harder to tackle pressing global challenges, from rising sovereign debt crises to the existential threat of climate change.
BRICS: South Africa’s weak transport network limits its trade opportunities (IOL)
South Africa has the potential to become a manufacturing hub for the continent if it fixes its infrastructure and refuses to be bullied by larger nations.
Praveer Tripathi, president of the Indian Business Forum, spoke candidly at the BRICS colloquium in Sandton on Thursday, where he called on BRICS countries to assist South Africa in resisting the “bullying”. Tripathi was part of a panel discussing ways in which trade and investment can be eased between BRICS countries in an era of trade partnerships.
One of the key elements in trade is logistics and South Africa has been brought under the spotlight for its failing rail, road and shipping infrastructure. Tripathi said with its impressive coastline, South Africa could easily become a manufacturing hub in the shipping industry, easily supplying BRICS countries.
South Africa courts Chinese investment ahead of BRICS summit (South China Morning Post)
South Africa is seeking more Chinese investments as it struggles with the impact of rolling blackouts and high unemployment.
Chinese President Xi Jinping is expected to lead a large business delegation to South Africa later next month when he attends the annual summit of the emerging markets group BRICS, which also includes Brazil, India and Russia, in Johannesburg.
On Tuesday, Fikile Majola, South Africa’s deputy minister of trade and industry, spoke to a business seminar in Beijing via video link, saying the country was looking to improve infrastructure.
“We are well aware that we must prioritise economic infrastructure, especially scaling up renewable energy capacity, roads and railways, ports, and airports, telecommunications and water infrastructure.”
UN Warns of Soaring Global Public Debt: a record $92 Trillion in 2022 (UNCTAD)
According to the report, 3.3 billion people now live in countries where debt interest payments are greater than expenditure on health or education. This five-fold surge in public debt levels since 2000, demands immediate action to tackle the escalating crisis affecting developing countries in particular.
The United Nations Secretary-General underlined: “On average, African countries pay four times more for borrowing than the United States and eight times more than the wealthiest European economies. A total of 52 countries – almost 40 percent of the developing world – are in serious debt trouble.”
Addressing the high cost of debt and the mounting risk of debt distress is of utmost importance. Establishing a debt workout mechanism is crucial to expedite progress under the G20 Common Framework for Debt Treatment, which has faced challenges due to creditor coordination issues and the absence of automatic debt service suspension clauses.
Members discuss possible TESSD outcomes for delivery at MC13 (WTO)
WTO members taking part in the Trade and Environmental Sustainability Structured Discussions (TESSD) on 11 July considered possible outcomes to promote opportunities for environmentally sustainable trade for delivery by the 13th Ministerial Conference (MC13) to be held in February 2024. Members also welcomed Barbados as the newest participant in TESSD, which now includes 75 WTO members as co-sponsors.
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Exports surge to N$43 billion in five months (The Namibian)
During the first five months of 2023, Namibia experienced a remarkable surge in exports, reaching an impressive value of N$43 billion. This figure exceeded the N$36,3 billion reached during the same period the previous year. According to the most recent data released by the Namibia Statistics Agency, uranium, diamonds, and fish continued to play vital roles in the country’s export earnings.
Uranium emerged as the leading export commodity, accounting for a staggering 21,5% of total exports in May. Diamonds claimed the second spot on the list of top exports, constituting 21,1% of Namibia’s total exports. Fish, another crucial component of Namibia’s export portfolio, claimed the third position, contributing 12% to the nation’s total earnings.
The Southern African Customs Union (Sacu) emerged as the dominant destination for Namibia’s goods during the period under review, capturing a significant share of 36,8% of the country’s total exports. Following closely behind Sacu were the Organisation for Economic Cooperation and Development (OECD) and Brazil, Russia, India, and China (the Bric countries), claiming the second and third positions, respectively, with 26,4% and 18,3% shares of Namibia’s total exports.
“Exports to Sacu consisted mainly of diamonds, non-monetary gold and petroleum oils, whereas uranium, fish and copper were destined to the OECD. The export basket to the Bric countries was mainly made up of uranium and ores,” the statistics agency says.
Kenya to Exploit Ties with Iran to Expand Trade (ZAWYA)
Kenya will exploit the strong ties it enjoys with Iran to expand trade. President William Ruto said trade volumes between the two countries are still low but with potential to grow. He explained that Kenya and Iran will strike a formula that will facilitate higher exports of tea, coffee and meat. “This will bring about the much-desired trade balance that is in favour of Iran.”
President Ruto observed that Kenya will also use the West Asian country’s wealth in technology and innovation for its development.
He explained that Kenya and Iran are strategically located to be each other’s key points of entry into their respective regions. “We will seek to capitalise on this unique advantage for our prosperity.”
Rwanda Maintains Strong Growth Momentum in Early 2023 (World Bank)
Rwanda’s economy grew by 9.2% in the first quarter of 2023, following 8.2% growth in 2022. But recent floods, resulting in the loss of life and destruction of infrastructure, are expected to moderate this momentum to 5.8% in 2023 against a pre-disaster forecast of 6.2%.
The 21st edition of the World Bank’s Rwanda Economic Update (REU) highlights positive developments in the country’s economic landscape. Momentum in growth was supported by private consumption and the services sector, accompanied by improvements in the labor market.
As its special topic, this 21st Rwanda Economic Update examines the inclusiveness of Foreign Direct Investment (FDI). While FDI inflows slowed during the COVID-19 pandemic, the report says, at their peak in 2014 these were well above the Sub-Saharan and East African average. FDI inflows, supported by a favorable regulatory environment, have played a crucial role in generating higher-quality jobs and access to social security, compared to their domestic counterparts.
“To improve the inclusiveness of FDI, Rwanda needs policies that focus on institutional reforms and infrastructure investments that will stimulate FDI to create jobs for women and youth and expand investment into poorer districts,” said Rolande Pryce, World Bank Country Manager for Rwanda.
Despite AfCFTA, Nigeria’s intra-African trade down 12% (TheNiche)
Nigeria’s intra-African trade value dipped 11.95 per cent year-on-year (YoY) from N956.93 billion in the first quarter of 2022 (Q1 2022) to N842.6 billion in Q1 2023, despite operation of the African Continental Free Trade Area (AfCFTA) since 2021.
AfCFTA projects 52.3 per cent expansion in continental trade by 2025, according to the International Monetary Fund (IMF). However, more than two years after the commencement of AfCFTA Nigeria’s trade value with other African countries in relation to its total foreign trade remains low.
The National Bureau of Statistics (NBS) report on Foreign Trade in Goods Statistics for Q1 2023 shows that at N842.6 billion, Nigeria intra-African trade was 6.99 per cent of its total foreign trade (N12.047 trillion) in Q1 2023. This is against 7.4 per cent contribution to total foreign trade (N13.001 trillion) in Q1 2022. Nigeria’s trade with other African countries also declined 24.87 per cent from N1.122 trillion in Q4 2022 to N842.6 billion in Q1 2023.
But Nigeria exported more than it imported, with exports rising from N444.418 billion in Q1 2022 to N665.10 billion in Q1 2023 while imports slashed from N512.513 billion to N177.50 billion.
Senegal’s Growth Prospects are Strong (IMF)
After slowing to 4.7 percent in 2022, growth in Senegal is projected to rebound to over 5.3 percent this year, due in part to an emerging oil and gas industry. This makes Senegal one of the strongest growing economies in sub-Saharan Africa. The country is facing some challenges, however, including spillovers from the war in Ukraine, tighter financing conditions, and increased political instability in the region. A widening fiscal deficit and increasing government debt are two major concerns.
The country has strong prospects however, reinforced by the production of oil and gas, which will give the economy a boost for the next few years. Growth is projected to accelerate to 10.6 percent in 2024 and 7.4 percent in 2025, with non-hydrocarbon growth expected to reach around 6 percent, assuming prudent macroeconomic policies and steadfast structural reforms are implemented under the IMF-supported programs.
The additional revenues from oil and gas exports will be set aside, in line with the new fiscal rule adopted, to ensure public spending can be sustained in the future, as the country transitions to renewables.
Tunisia: Trade deficit narrows to $2.8bln, end-June 2023 (ZAWYA)
The trade deficit narrowed to TND -8,686.9 million at the end of June 2023, against TND -11,775.5 million during the first half of 2022. This deficit can be explained by the 10% rise in exports and the 0.6% fall in imports in H1 of 2023.
The results of Tunisia’s foreign trade at current prices in H1 of 2023 reveal that exports rose by 10% compared with a 24.6% increase in the same period in 2022. They reached TND 31,271 million compared with TND 28,432.4 million during the first half of 2022. Imports fell by 0.6% compared with an increase of 32.4% at the end of June 2022.
Improving debt management in Mauritania (UNCTAD)
A recently concluded UNCTAD project has helped Mauritania improve its public debt management. Implemented as part of UNCTAD’s Debt Management and Financial Analysis System (DMFAS) programme, the two-year project has helped improve the availability of the sub-Saharan African nation’s debt data.
It lead to the publication of the country’s debt statistics bulletin in line with international standards. The bulletin now provides more comprehensive information on Mauritania’s public debt in a timely manner, enhancing transparency to inform policymaking and debt restructuring negotiations.
While public debt can be vital for development, UN analysis highlights how it can become a heavy burden and divert government resources from essential services, such as education and health.
PAP delegation in Kenya to push continental freed trade area agenda (The Herald)
Pan African Parliament (PAP) president Chief Fortune Charumbira is heading a delegation of the continental legislative body that is in Kenya to attend the fifth mid-year coordination meeting of the African Union that seeks to accentuate the drive to create a continental free trade area.
The PAP delegation will join representatives of regional economic communities and AU member states at the meeting that will be convened under the AU 2023 theme,” Acceleration of African Free Trade Area(AfCFTA) Implementation.”
There has been a growing chorus for African countries to leverage their vast natural resources base, value add and get more returns to pivot the continent towards sustainable growth for the benefit of African people and achieve Agenda 2063 targets. Looming large at the meeting will be the discussion and presentation on the status of continental integration in Africa in accordance with the Abuja Treaty.
Eliminate Non-Tariff Barriers to boost intra-African food trade (EAC)
African Union Members States have been called upon to adopt policies to encourage intra-African trade in food production by among other things removing Non-tariff Barriers (NTBs) that currently make imports from outside the continent costly compared to locally produced food. AU Member States were further urged to invest in irrigation agriculture by moving away from the reliance on rain-fed agriculture.
African countries were called upon to adopt policies that motivate the youth to take part in agriculture to ensure increased production and reduce food insecurity. These were some of the resolutions by the 14th African Union High Level Private Sector Forum that was held at the Kenyatta International Convention Centre in Nairobi, Kenya from 10th – 12th July, 2023. The forum further encouraged AU Member States to build resilient food systems which are climate resilient by employing technologies which promote investments in technologies that also address post-harvest losses.
Top agri opportunities in EAC region revealed (Farm Kenya Initiative)
A study by East African Business Council (EABC) in partnership with Sequa GmbH under the Business Scouts Fund and GIZ Business Scouts for Development offers useful insights on investment opportunities in the region. The study aims to address the region’s low foreign direct investment in agriculture, its reliance on food imports and vulnerability to global shocks.
The study shows Foreign Direct Investment (FDI) into the EAC region increased marginally between 2015 and 2021, primarily driven by investments from China and India, but the majority of the money has been directed towards the manufacturing, construction, and services sectors, rather than the agricultural sector.
The study reveals significant potential for developing value chains in wheat, edible oil (soya beans, sesame, palm oil), fertilisers, tubers (potato and cassava) and leguminous plants within the EAC.
China’s participation key to AfCFTA implementation, development (Engineering New)
South African diplomat and ambassador of South Africa to Madagascar Gert Grobler has emphasised the importance of the African Continental Free Trade Area (AfCFTA) in advancing Africa’s integrated cooperation and development, as well as the vital role that China can play in advancing progress with the AfCFTA through cooperation and development.
“Despite headwinds, trade between Africa and China jumped to a record of $260-billion in 2022 and continues to grow. This is owing to Beijing’s recent push to boost imports from Africa, with 11% year-on-year growth,” Grobler noted during a webinar, titled ‘The Future of Africa-China Trade and How to Get There’, hosted by the South African Institute of International Affairs (SAIIA) on July 12.
Grober added that, in supporting Africa to advance integrated cooperation, China had agreed to actively participate in the development of the AfCFTA, and provide continued support to the secretariat of the AfCFTA towards the full integration of this trade initiative.
AU mid-year meeting in Nairobi to focus on continental integration and financing (Ahram Online)
The meeting brings together Regional Economic Communities (RECs), Regional Mechanism (RMs) and member states to review the progress of the continental integration agenda.
The meeting will explore ways to enhance integration, including promoting free movement and the African passport, as well as connecting infrastructure and financial markets. It will also explore establishing a common African market to accelerate trade, agriculture, establishment of businesses, and transfer of skills in Africa.
To accelerate these efforts, the meeting will discuss the division of labour between the AU, RECs, RMs, and member states, anchored on the principles of subsidiarity, complementary, and competitive advantage.
The division of labour is centred around six pillars: policy planning and formulation; policy adoption; policy implementation; monitoring, evaluation and reporting; resource mobilization; and partnerships.
Also on the agenda will be the financing of Agenda 2063, focusing on Africa’s economic recovery and the implementation of initiatives to address challenges in agriculture, infrastructure, debt, climate change, security, energy, and health. This year’s meeting will be preceded by the meeting of the AU’s Executive Council on 13-14 July.
The ministerial meeting will discuss the implementation of the African Continental Free Trade Area.
Africa needs an extra $194bln per year to 2030 to achieve SDGs (ZAWYA)
Africa needs an extra $1.6 trillion by 2030 - $194 billion annually - to achieve its Sustainable Development Goals (SDGs). To attract more and better investment and fill that gap, African governments and their partners should improve information to investors, increase the capacity of African development finance institutions, and boost regional projects, according to the 2023 edition of Africa’s Development Dynamics.
Africa’s real GDP growth is expected to reach 3.7% in 2023, a return to pre-Covid-19 levels. In addition to these positive economic perspectives, the continent boasts unique human and natural assets to attract investors: half of the African population is 19 years old or younger
As for natural capital, which accounts for 19% of Africa’s total wealth, it offers large opportunities for investing in sustainable development: for example, African forests increased the global carbon stock by 11.6 million kilotonnes of CO2-equivalent net emissions from 2011 to 2020, as the Congo Basin became the world’s largest carbon sink.
Despite that potential, global crises have been affecting investment in Africa more negatively than in the rest of the world. For instance, Africa’s share of global greenfield foreign direct investment has dropped to 6% in 2020-21 (the lowest share in 17 years), while high-income countries elsewhere have recorded their highest share ever (61%), compared to 17% for developing Asia and 10% for Latin America and the Caribbean. The cost of capital in Africa has also risen above the levels in other parts of the world, pricing some African governments out of bond markets while thwarting investments in transformational sectors such as renewable energy.
US to Adopt Instant Payments System (Business Post Nigeria)
The United States will join the likes of Nigeria, India, and Thailand, among others, with a banking system that supports instant payments following plans by the US Federal Reserve to roll out its FedNow Service.
The US is the largest economy in the world but it has one of the most rigid banking systems in the world as banking services are mostly conducted within business hours. This means that even if a transaction is done within seconds, it may take hours or several hours for the receiver to get the funds.
Money-moving apps like Venmo, Zelle, and CashApp have sprung up to cover this gap in recent years, but regardless, the problem persists since these transfers are operated on networks that work during working hours.
The US central bank with FedNow will offer banks a way to make instant payments available in the country, a feature that Nigerian customers have enjoyed for almost 10 years.
Gabon formally accepts Agreement on Fisheries Subsidies (WTO)
DG Okonjo-Iweala said: “I am grateful to Gabon for its formal acceptance of the WTO Agreement on Fisheries Subsidies. Illegal, unreported and unregulated (IUU) fishing costs Africa over $2.3 billion in economic losses every year, according to estimates from the African Union Commission, so I am particularly pleased to see another acceptance from the continent. This is the latest sign of Gabon’s commitment to building a truly sustainable ocean environment and economy: the country has created one of the largest marine reserves in Africa, and its Gabon Bleu programme includes measures to fight IUU fishing. Fish consumption in Gabon is above the global average, and food security in the country stands to gain from the agreement’s rapid entry into force. I hope this serves as an inspiration to other WTO members.”
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South Africa: SARS’s Authorised Economic Operators Programme (Global Compliance News)
Today’s global economy demands that businesses expand beyond borders, but they face hurdles from customs, as well as regulatory barriers in different countries and regions that make this expansion challenging. The South African Revenue Service Authorised Economic Operators (AEO) programme offers numerous benefits for businesses trading within the regional market of the Southern African Custom Union and internationally.
In May this year, Botswana, Eswatini, Lesotho, Namibia and South Africa, the Member States of the Southern African Customs Union (SACU), signed the Mutual Recognition Arrangement to recognise SACU importers and exporters that have been granted AEO status. The SACU Revenue Administration is also committed to facilitating cross-regional trade and being alert to all its risks to reduce poverty, inequality, and unemployment.
For South African businesses involved in trade within the regional market of the SACU and internationally, there is an opportunity to achieve AEO status. AEO status is available to businesses such as manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors and freight forwarders. In addition, Small, Medium, and Micro Enterprises (SMMEs) within the same trade zone are eligible for the AEO programme. However, SARS Customs approval is necessary before AEO status can be achieved. The AEO programme is divided into different accreditation levels, as explained below.
Manufacturing production increased by 2.5% y/y in May (Engineering News)
Statistics South Africa has reported that manufacturing production increased by 2.5% in May this year compared with May last year. The largest contributions were made by the motor vehicles, parts and accessories and other transport equipment (15.1% and contributing 1.4 percentage points) and the basic iron and steel, non-ferrous metal products, metal products and machinery (5.8% and contributing 1.2 percentage points) sectors.
South African Business Groups Concerned as US Reviews Trade Program (VOA)
South African business groups are pushing the government to make strong diplomatic efforts to ensure the country is not stripped of its duty-free access to the U.S. market.
A group of U.S. senators recently questioned South Africa’s status under the African Growth and Opportunity Act, citing Pretoria’s ties with Moscow. South Africa has invited Russia President Vladimir Putin to an August summit despite his invasion of Ukraine and his being wanted by the International Criminal Court.
Relations between Pretoria and Washington have so deteriorated in recent months that South African business groups are now scrambling to try and make sure the country isn’t kicked out of an important U.S. tariff-free program.
The U.S. Congress is beginning to review the renewal of the African Growth and Opportunity Act, known as AGOA, with a decision expected by the end of the year. Some U.S. senators recently wrote a letter saying South Africa should no longer host an AGOA forum set for later this year. They also raised the prospect that the country could lose access to its trade benefits entirely.
Busisiwe Mavuso, CEO of Business Leadership South Africa, an independent association of some of South Africa’s largest businesses, said she was preparing a submission urging the U.S. to renew South Africa’s participation in AGOA.
Mavuso said South Africa is the largest single beneficiary country under AGOA, with 25% of the country’s exports going to the U.S. and nearly a billion dollars’ worth of exports to the U.S. in the first three months of this year alone.
How Kenya and the EU can close the loop on textiles (ECDPM)
The costs of green technologies are going down, which creates opportunities for green industrialisation in Kenya and beyond. European foreign direct investment can contribute to such a journey, in line with the EU’s ambition to promote European private sector engagement for sustainable development worldwide, as outlined in its Global Gateway strategy. The Kenyan government could seek closer collaboration with the EU and its member states, including their private sector.
Traders shift from Northern Corridor to rail on high fuel costs (The East African)
Increasing cost of fuel in Kenya after enactment of the Finance Act 2023 will increase transport cost along the Northern Corridor by more than 30 percent, with some traders already opting to use rail to ferry cargo from the Port of Mombasa to the hinterland.
The Shippers Council of Eastern Africa (SCEA) has already shown more interest in using railway to cut cost of transportation as rail charges remain unchanged since the standard gauge railway freight train was introduced five years ago.
In March last year, long distance transporters increased transportation charges by five percent and the announcement to increase charges further will make the corridor one of the most expensive routes in the region.
According to latest traffic cargo report, Naivasha ICD recorded a sharp increase in usage by conventional cargo compared to containerised, with grain and fertiliser boosting throughput – an indication of a shift resulting from high cost of transporting cargo using trucks.
FG moves to scale up production of electric vehicles (Businessday NG)
Nigeria’s post-fuel subsidy era appears to be heading the way of electric as the federal government, through the National Automotive Design and Development Council (NADDC), has acquired locally-assembled electric vehicles with their charging infrastructure from Nigerian mobility technology company, Jet Motors, a move that may signal the future of mainstream mobility in the country.
Jelani Aliyu, director general of the NADDC, informed that government is set to put a policy in place to scale up the production of Electric Vehicles working in partnership with local automotive companies and other relevant stakeholders.
He informed that the NADDC will in the next two weeks, ratify Electric Vehicle Development Plan, which is a set of fiscal and non fiscal incentives and other programmes such as training of mechanics to support local production of electric vehicles.
Vibrant private sector crucial to economic growth in Africa (EAC)
Kenya’s Cabinet Secretary for East African Community and Arid and Semi-arid Lands, Hon. Rebecca Miano, has underscored the importance of a vibrant private sector in promoting economic growth at the national, regional and continental levels in Africa. Hon. Miano said that the Private Sector accounts for 80 per cent of Africa’s total production, two-thirds of investment and three-quarters of credit in addition to employing 90 per cent of the continent’s working-age population.
Ms. Miano said that a robust private sector was indispensable to the realisation of Africa’s sustainable and economic transformation. “The success of Africa’s economic integration is premised on the role of the private sector in achieving growth objectives of Africa’s economies, and by extension, creating greater wealth and expanding employment opportunities,” said the CS.
“Regional value chains are essential for promoting intra-African trade, economic integration, and industrial development. They offer opportunities for countries to leverage their comparative advantages, enhance productivity, create jobs, and increase their share of value-added activities within the global economy,” said Ms. Miano.
The CS was giving the keynote address during the opening session of the 14th African Union High Level Private Sector Forum at the Kenyatta International Convention Centre in Nairobi, Kenya.
EAC unveils an online Tool to measure performance of One Stop Border Posts (EAC)
The East African Community (EAC) has unveiled an online tool to measure the performance of the 22 One Stop Border Posts (OSBPs) across the region. The EAC Secretary General in charge of Customs, Trade and Monetary Affairs, Ms. Annette Ssemuwumba, unveiled the One Stop Border Post Performance Measurement Tool on behalf of the EAC Secretary General, Hon. (Dr.) Peter Mathuki, during the opening session of the 14th African Union High Level Private Sector Forum that is taking place in Nairobi, Kenya this week.
Ms. Ssemuwemba announced that the tool is now ready for use and that Partner States and stakeholders will embark on data collection, sensitisation on use and full roll out.
Customs administrators in the EAC region will use the data generated by the measurement tool to assess OSBP performance and institute improvement strategies. Specifically, the tool has been developed to provide the necessary mechanism to measure the performance of OSBPs on six fronts, namely: Time, Cost, Volume/ Throughput, Infrastructure, Inter-Agency Coordination and User Satisfaction.
Seychelles considers joining Single African Air Transport Market (Seychelles News Agency)
Seychelles is still evaluating whether or not to sign an agreement to be part of the Single African Air Transport Market (SAATM), an initiative of the African Union (AU), said a top government official on Tuesday.
The Single African Air Transport Market seeks to promote connectivity, boost intra-African trade and tourism, and enhance economic integration among African countries. “One of the reservations we have is that we are protecting our aviation industry, including Air Seychelles. We want to ensure that when we do sign this agreement, we will protect Air Seychelles, and at the same time we will do all that is necessary to expand as a regional airline,” said the Minister for Transport, Anthony Derjacques, at the opening of a two-day workshop.
AfDB, WAMI Advocate Capital Markets Integration To Boost Cross Border Investment (Leadership)
The African Development Bank(AfDB) and West African Monetary Institute (WAMI), have called for capital markets integration to boost cross border investment in the West African region. This will be done through West African Monetary Institute Capacity Building/Sensitisation Programme on West African Capital Markets Integration (WACMI) Phase II Project holding on July 11 to 12, 2023 in Lagos.
The director-general of WAMI, Dr. Olorunsola Olowofeso said, integrated capital markets will foster cross border investment, stimulate and deepen the regional financial markets through a series of activities aimed at harmonising capital market operational rules, while providing aggregated financial markets information.
Olowofeso stated that, “the project emphasises knowledge transfer and capacity building through workshops and technical training sessions to build the capacity of market operators, regulators, asset managers, financial infrastructure providers and other capital market participants on a range of financial market issues including regulations, supervision, innovative financing, cross-border investments and settlements.”
US-Africa Business Summit kicks off (Mmegi Online)
The US Africa Business Summit took off today in Gaborone, with over 1,200 delegates registered and the promise of deals being made across various economic sectors.
The summits, organised by the Corporate Council on Africa – a trade association focusing on strengthening commercial relationships between the United States and Africa – are the premier platforms for bringing together African heads of state and other senior US and African government officials with top African and American senior business executives.
On Monday, Botswana Investment and Trade Centre CEO, Keletsositse Olebile told media that the organisation is ready to capture the attention of an array of institutional investors seeking to channel capital investments into Botswana.
“Our value proposition is simple as we engage investors, pick Botswana as a landing pad for investments, and position Botswana as an investment hub for your capital,” he said.
“The recently ratified AfCFTA agreement strengthens our communication and should excite investors to come to the mainland so that they can launch into the rest of Africa from a stable jurisdiction,” he said.
Inside EU battle for resource-rich eastern Africa (The East African)
The European Union’s battle for influence in East Africa is taking shape with increasing private investment and funding across the region. This follows a €150 billion ($170 billion) pledge for investment pledge made in February last year at the EU-Africa Summit in Brussels, Belgium.
While Europe maintains that it is not in competition with China for influence on the continent, its priority sectors now include building infrastructure, including rapid bus transit systems, which have been dominated by China. It also targets health, education, and climate change adaptation.
The EU’s Global Gateway strategy, which has largely been seen as an answer to China’s Belt and Road Initiative, plans to mobilise up to €300 billion ($331 billion) in public and private investments by 2027, with half of it designated for African countries.
Leaders push for new global financing model that fits Africa (The East African)
Rising interest rates, inflation and commodity shocks have raised the likelihood of an overlap of debt crises in Africa. The International Monetary Fund estimates that 30 percent of emerging markets and 60 percent of low-income countries could face difficulty paying their debts.
Additionally, there has been a marked change in the global credit landscape over the past decade, with China and private bondholders -- who are the main creditors for the low-income economies – making the traditional structures less effective for present-day debt challenges.
At the Shareholders General Meeting of infrastructure lender Africa50 early this week in Lome, Togo, African financial and political leaders looked at different ways of enhancing financial and credit access and all agreed that a fundamental shift is required. The leaders have taken up the push for a re-engineering of the global financial architecture, seeking a model that works for the continent.
“It is failing the world,” said Dr Akinwumi Adesina president of the African Development Bank (AfDB). “It is not able to mobilise the capital that the world needs to meet all of its development needs.” “It is also failing developing countries because you can see that even after Covid, Africa still needs about $250 billion to recover. We need $277 billion a year to deal with climate change, plus you still have to deal with Africa’s debt: today countries have to pay a lot in terms of repayment and service of debt,” he added.
India ups lending to Africa in bid to counter China’s dominance (The North Africa Post)
Africa has become the second-largest recipient of credit from India while over the past decade 18 of the 25 new Indian embassies or consulates were opened in the continent, as the South Asian powerhouse tries to catch up with China’s massive sway in the resource-rich continent.
Many African nations received about $12 billion or 38% of all credit extended by India in the past decade, just a few percentage points below its neighbors, according to Harsha Bangari, Managing Director of India’s Export Import Bank. The bank is an instrument of India’s “economic diplomacy,” Bangari said, adding that the South Asian nation has also opened up 195 project-based lines of credit across Africa, three times the number it has in its own region in the last decade. These credit lines have been utilized for crucial projects in healthcare, infrastructure, agriculture, and irrigation, driving a steady increase in demand from Africa.
Despite these impressive figures, India has lagged behind its bigger and wealthier neighbor in making inroads in Africa. While China’s loans to Africa have dipped since 2016, overall between 2010-2020, it pledged $134.6 billion, or more than 11 times more than which India has offered, to African nations, according to data from Boston University’s Global Development Policy Center. China has also made an early move to tap mineral resources in Africa, including new centers of lithium supply, helping it navigate a tight market for a key metal for electric vehicles.
Cross-border e-commerce brings more opportunities for China-Africa trade cooperation (Global Times)
The traditional model for trade, which often involves manual placement of orders, is now unable to satisfy the growing trade demand between China and Africa, with cross-border e-commerce becoming another driving force for bilateral trade, which is facilitating booming growth in economic ties.
Mouhamadou Bassirou Pouye, a Senegalese businessman who is engaged in cross border e-commerce has witnessed a rising volume of business over recent years. With the help of e-commerce platforms, he brought popular agricultural products in his country, including peanuts and coffee, to China, while also shipping goods from Yiwu, the world’s largest commodities hub located in East China’s Zhejiang Province, to his country.
DRC will take advantage of China’s export limits on rare metals amid global supply concerns (The North Africa Post)
Invoking national security concerns, Beijing on Monday (4 July) announced export limits on select gallium and germanium components, raising concerns about global supply chain disruptions for semiconductor and defense industries. With China’s dominance in the production of the two obscure yet crucial metals, other countries like Australia, Europe, and the United States are exploring opportunities to develop their own projects in order to reduce their reliance on Chinese supply. Experts warn that China’s move is only the latest stage of an escalating trade war on technology with the US and Europe.
Africa: Boosting energy transition – initiatives, funding and investment (Global Compliance News)
In Africa, 43% of the population does not have access to electricity, mostly in sub-Saharan Africa, according to a recent report by the International Energy Agency. Increasing access to a clean, decarbonized, and decentralized energy supply is therefore critical for the continent.
The growing focus on the energy transition can benefit Africa in numerous ways, including that the continent is already in the process of harnessing its vast supply of renewable energy to generate power and is also gearing up to increase trade in its large store of critical minerals, needed for the global energy transition.
To enable this transition, countries across Africa are implementing policies that take into account the energy crisis, the need for a renewable energy supply that addresses climate change and the commitments made under the Paris Agreement. In addition, many countries in Africa and other jurisdictions are launching initiatives and providing funding, investments and grants for African renewable energy projects.
What does Climate Risk really mean for African economies? (OECD Development Matters)
Discussions on green and climate finance in Africa often dwell on two issues. The first is why it’s so difficult to scale-up this type of financing on the continent. The second is the issue of layered risk: some are not keen to layer ‘ESG’ risk on top of ‘Africa’ risk in investments.
The first concern on scaling green and climate finance in Africa is understandable. From a demand perspective, the Africa Development Bank estimates that the continent will require an average of USD 1.4 trillion between 2020-30, yet in terms of supply, climate finance committed and mobilised for Africa is falling short. As it stands, there will be an estimated annual climate financing gap of USD 99.9–127.2 billion between 2020–30. It follows that meeting climate financing commitments already made is likely to be a challenge.
Compounding this dilemma, is the continent’s seeming inability to absorb green and climate investors already interested in Africa. For climate financiers, risks associated with informality and the dominance of SMEs on the continent mean that investments originate and are implemented in an environment dominated by small ticket sizes, data holes, information asymmetry, lack of standardisation, limited line of sight to impact, and concerns about verification and compliance.
The market for minerals that help power electric vehicles, wind turbines, solar panels and other technologies key to the clean energy transition has doubled in size over the past five years, according to a new report by the International Energy Agency.
The first annual IEA Critical Minerals Market Review, released today along with a new online data explorer, shows that record deployment of clean energy technologies is propelling huge demand for minerals such as lithium, cobalt, nickel and copper. From 2017 to 2022, the energy sector was the main factor behind a tripling in overall demand for lithium, a 70% jump in demand for cobalt, and a 40% rise in demand for nickel. The market for energy transition minerals reached USD 320 billion in 2022 and is set for continued rapid growth, moving it increasingly to centre stage for the global mining industry.
In response, investment in critical mineral development rose 30% last year, following a 20% increase in 2021. Among the different minerals, lithium saw the sharpest increase in investment, a jump of 50%, followed by copper and nickel. The strong growth in spending by companies on developing mineral supplies supports the affordability and speed of clean energy transitions, which will be heavily influenced by the availability of critical minerals.
Rapid poverty reduction in some countries, data missing in many others (UN News)
According to the updated global Multidimensional Poverty Index, revealed on Tuesday by the UN Development Programme (UNDP) and the Poverty and Human Development Initiative at the University of Oxford, progress was seen in India, where 415 million people exited poverty in just 15 years, as well as in China (69 million) and Indonesia (8 million).
“As we reach the mid-point of the 2030 Agenda for Sustainable Development, we can clearly see that there was steady progress in multidimensional poverty reduction before the pandemic,” Pedro Conceição, Director of the Human Development Report Office, said.
But the lack of data for most of 110 countries covered by the index restricts the understanding of just how deeply the pandemic has impoverished millions, highlighting the urgent need to strengthen data collection.
One year of the Black Sea Initiative: Key facts and figures (UN News)
Nearly one year into the agreement, more than 32 million tonnes of food commodities have been exported from three Ukrainian Black Sea ports to 45 countries across three continents. The partial resumption of Ukrainian sea exports enabled by the Initiative has unblocked vital food commodities and has helped reverse spiking global food prices, which reached record highs shortly before the agreement was signed.
Although global food commodity prices have generally fallen, many factors influence food affordability and domestic food inflation, including exchange rates. The Initiative has helped reconnect foodstuffs from Ukraine to global supply chains, contributing to lower prices on world markets.
Before the conflict, Ukraine was one of the leading grain exporters and the leading global exporter of sunflower oil. Its produce must continue to flow unhindered to supply markets and help to contain prices. A lack of food supplies produces knock-on effects for the lives of millions of people, particularly the poorest, hitting them hard in the areas of health, education, and social cohesion. The Initiative has allowed the partial resumption of vital food supplies into the market. It has given Ukrainian farmers some level of predictability in production and harvest and has revived key shipping lanes.
Twin transition for global value chains: Green and digital (UNCTAD)
The green and digital transitions have developed in parallel to date, especially in latecomer countries, but green and digital technologies are increasingly becoming intertwined. Future policies should focus on aligning green and digital strategies, developing digital competencies and strengthening financial support and international partnerships.
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The African Continental Free Trade Area (Afcfta) Unveils Remarkable Benefits for South Africa (the dtic)
The African Continental Free Trade Area (AfCFTA) has emerged as a game-changer, presenting South Africa with unparalleled benefits and opportunities. This was said by the Director of Africa Bilateral Economic Trade at the Department of Trade, Industry and Competition (the dtic), Mr Calvin Phume, during the AfCFTA awareness workshop which took place in Cape Town.
“This unparalleled market reach will catalyse a surge in trade, enabling local businesses to tap into new market opportunities, expand their operations, attract investments and bolster their revenue streams,” he said. He emphasised the transformative power of the AfCFTA and the benefits and opportunities that it will bring to South Africa are truly remarkable.
“We are poised to witness a surge in trade activities, fueling economic growth and fostering cross-border collaboration. With the AfCFTA now in full swing, South Africa stands at the forefront of a momentous trade revolution that will shape the future of the continent encouraging innovation and promoting the development of value-chains, thereby spurring industrialization and job creation across sectors. As businesses gear up to leverage the vast consumer base offered by AfCFTA, the stage is set for unprecedented growth and prosperity,” he said.
Transport sector has role to play in sustainable economies – Chikunga (Engineering News)
The transport sector is not untouched by climate change and also has considerably high negative externalities, and this necessitates innovative thinking around the opportunities to renavigate transport systems towards greater resilience and becoming a true enabler of sustainable economies.
This was emphasised by Minister of Transport Sindisiwe Lydia Chikunga, delivering the keynote address on the first day of the forty-first South African Transport Conference, being held in Pretoria this week.
Chikunga said that, as the stakeholders in the industry look to rethink transportation, they must first identify and respond to the current existing modalities, which makes building resilient transport systems difficult to achieve.
This, she said, includes glaring extensive vulnerabilities, which include a lack of harmonisation of policy, regulation and automated planning across the region.
SA rallies Nigerian businesses for BRICS’ multi-sectoral investments (Businessday NG)
The South African Consulate in Lagos has urged Nigerian businesses to take advantage of South Africa’s hosting of the regional economic group, BRICS, an acronym for Brazil, Russia, India, China, and South Africa, this August.
Bobby Moroe, consul-general of the Lagos Consulate made the call at a roundtable with the Nigerian business community with the theme, “Promoting Regional and Continental Trade through African Continental Free Trade Area (AfCFTA) and BRICS” in Lagos.
According to him, while South Africa is currently the only African member of the BRICS, it is hosting on behalf of the entire continent. Moroe said Nigeria as well as other African countries will also benefit immensely from participating in the meeting as countries on the continent share similar challenges, which require similar solutions.
While emphasising the importance of collaboration of all countries in the Southern part of the globe, Moroe said: “In the post-COVID-19 world order, South-South cooperation has become very important. The socio-economic and political challenges faced by South Africa are no different from the challenges that are facing the entire continent. So, whatever it is that we advance at the level of BRICS formation, we advance not only on behalf of South Africa, but on behalf of the rest of the continent.
We Want Nigeria, US Trade Volume Grow Up, Says President Biden’s Advisor (Leadership)
The US government has expressed its continued commitment to supporting and developing Nigeria and other African countries’ economy and trade. It also charged Nigeria to develop its agricultural potentials particularly cocoa production to boost the economy and stressed the need for the country to take advantage of the American law on the African Growth and Opportunities Act.
This came as the Cocoa Farmers Association of Nigeria (CFAN) called for the semi-deregulation of the Cocoa economy and establishment of the Cocoa Commission.
A member, Advisory Council to the American President, Joe Biden, Mr Franklin Olakunle Amoo spoke in Ado Ekiti, the Ekiti state capital at the inauguration of the CFAN 12-member 2nd National Working Committee.
Delivering a keynote address on the ease of doing business in Africa, during the event with the theme: “Renewed Hope: Rejuvenating Nigeria’s Cocoa Culture”, Amoo said, “The US government is very interested in seeing more private sector environment from US companies to engage with the Nigeria economy in particular.
AfDB urges diversification of Nigeria’s export, revenue bases (Newsdiaryonline)
The African Development Bank (AfDB) has urged the diversification of Nigeria’s export, revenue bases and trade facilitation capacity to boost revenue generation potential. The AfDB President, Dr Akinwumi Adesina, said this at the second edition of the Nigeria Employers’ Summit on Monday in Abuja. The summit has as its theme, “Trade and Non-Oil: Changing the Narratives for Rapid National Development.
Adesina, represented by Mr Lamin Barrow, the Director-General, Nigeria Country Department of AfDB, said the measures would address some major risk faced by the country. According to him, Nigeria like many other oil-exporting countries, faces several challenges related to global commodity price volatilities. He said that the key challenge was the fiscal risks associated with overdependence on oil exports for fiscal revenues.
“Nigeria’s economy is one of the most diversified in Africa, with the oil sector accounting for less than 10 per cent of the Gross Domestic Product (GDP) with the non-oil sectors accounting for more than 90 per cent. “The key challenge is revenue concentration.
Chad: Targeted policy reforms can boost resilience to climate change and flooding (World Bank)
Unplanned and rapid urbanization interacts with environmental degradation and climate change to amplify flood risk in the country
The 2023 Chad’s Economic Update shows that floods cause significant spillover effects that disrupt economic activity, negatively impact on the well-being of the most vulnerable and exacerbate issues linked to internal displacement and conflict. As Chad is one of the most vulnerable countries to climate change, in the absence of urgent measures to effectively reduce risks and strengthen climate adaptation, the consequences of floods could further worsen, and hamper long-term growth and development prospects.
As for the country’s macroeconomic outlook, the report indicates that Chad experienced a modest GDP growth in 2022, with the expected recovery dampened by floods and a volatile security environment. After contracting by 1.2% in 2021 (-4.3% per capita), the Chadian economy was expected to recover in 2022 thanks to high oil prices, an increased oil production and the depreciation of the FCFA/USD exchange rate. However, the recovery was dampened by floods and a volatile security environment, with GDP growth estimated at 2.2% (-0.9% per capita), and non-oil GDP growth at 1.3%, from 0.4% in 2021. Industry, mainly the oil sector, was the main contributor to growth (4.1 percentage points), followed by agriculture with a contribution of 0.6 percentage points, due to inadequate rainfall distribution and severe floods.
Liberia: Russia Blamed for Wheat Surge in Africa (Liberian Observer)
A German-based agricultural economist at the Institute of International and Security Affairs in Berlin said the impact of the Russia and Ukraine war on food supply to Africa is based on complicated characteristics of vulnerability for different countries.
For Dr. Bettina Rudloff, the impacts are composed of import quality and prices, own stocks, and food aid. “The wheat prices have currently relaxed to the pre-war level,” she said. “But these prices are still much higher than the average of the last few years. And the war’s effects came on top of anyhow problematic situations as well as concerns about global hunger.”
One of the immediate effects of the crisis has been the disruption of trade flows. Russia and Ukraine were important exporters of agricultural commodities such as wheat, corn, and sunflower oil. However, the conflict has led to trade restrictions and disruptions, making it difficult for these countries to export their products. This has resulted in a reduction in the global supply of these commodities and subsequently, an increase in their prices.
Countries like Liberia depend on exports from these countries, the war is a setback to them. The loss of grain and food imports means that it will be more difficult for Africans to obtain these goods and, above all, pay for them.
Afreximbank launches the African Trade Report 2023 (Afreximbank)
The African Export-Import Bank’s (Afreximbank), 2023 edition of the African Trade Report (ATR2023) was launched at the Bank’s Annual Meeting – AAM2023 and 30th Anniversary celebrations in Accra, Ghana.
Launching the ATR2023 along with HE Ambassador Albert Muchanga, the African Union Commissioner for Economic Development, Trade, Industry and Mining, Professor Benedict Oramah, the President and Chairman of the Board of Directors of Afreximbank, said that Africa showed growth resilience amid a synchronised global deceleration under the confluence of overlapping crises, including lingering effects of the Covid-19 pandemic, record-high inflation, heightening geopolitical tensions and intensification of trade wars.
Indeed, amid these global headwinds Africa remained on a growth trajectory, with its GDP growth increasing by 3.9% and its merchandise trade expanding by 20.9% in 2022, above the world’s average of 12%, according to the report.
Economists call for EAC trade tribunal (93.3 KFM)
Players in the small and medium enterprise sector are calling for the establishment of an East African Community (EAC) trade tribunal to address regional trade bottlenecks such as the recent stand-off at Elegu border. This follows the release by the government of South Sudan, of the first 26 of the 92 trucks that have been impounded for more than a month over allegations of high levels of aflatoxins in the grain cargo.
the Executive Director of the Federation of Small and Medium Enterprises (FSME), John Walugembe says having a trade tribunal will help address such unjustified non-tariff barriers in the future, and will foster smooth and full regional economic integration.
EAC plan to raise revenue from fourth tax band faces headwinds (The East African)
East Africa’s plan to generate an additional $18.9 million worth of intra-regional trade from the revised Common External Tariffs (CET) is facing headwinds as partner states seek preferential tax treatment, putting implementation of the four-band tariff structure in jeopardy.
Last year, the EAC Secretariat underscored the enforcement of the 35 percent duty on finished products imported into the region, under a new tariff structure that took effect on July 1, 2022.
The secretariat through a report dated January 2022 analysing the potential benefits of the fourth band argued that the maximum tariff of 35 percent will eliminate frequent use of stay of applications (SOAs) by partner states by adoption of mixed customs tariff structure and help promote intra-regional trade, investments and employment creation.
However, a review of an EAC gazette notice dated June 30, 2023 shows how virtually all EAC member states have sought preferential tax treatment through stays of applications and exemptions on several finished and sensitive items.
Mitumba Supports 3.4 Million Jobs And Contributes $419 USD In Income Duties And Taxes To The EAC (Soko Directory)
A new report commissioned by the Mitumba Consortium Association of Kenya on the Second-Hand Clothing Industry in the East Africa Community has warned that countries must avoid protectionism against the import of second-hand clothing. This report comes as trade ministers converge in Kenya this week for the 54th All-Africa Trade Ministers meeting of the African Continental Free Trade Area (AfCFTA), where the origin of textiles is set to be discussed.
The report, launched on the 10th of July in Kenya and written by Professor Patrick Diamond of Queen Mary University, London, states that any restrictions would violate trade agreements, particularly with the WTO and United States.
The report also shows that a policy approach in which governments focus on proactively expanding state of the art sorting-facilities while boosting skills and entrepreneurship is far more likely to deliver growth and jobs in the future.
Of particular interest to the EAC, the paper argues that the new domestic textile production industry and the second-hand clothes (SHC) industry can and should work together, for the mutual benefit and growth of both sectors.
The contribution of the used clothing and footwear industry to the economic growth and employment performance of the EAC is vast. We estimate that the SHC industry supports up to 3.4 million jobs throughout the supply chain in East Africa.
Moreover, the sector delivered government revenues estimated at US$419 million in 2021 across East Africa through taxing consumption and incomes associated with SHC. Moreover, SHC generates competition that helps to incentivize technological innovation throughout the textile production sector.
Ruto woos Comoros to join EAC in quest for expanded bloc (The East African)
Kenya’s President William Ruto is making his vision of a future East African Community clear with the latest offer to the Comoros to join the bloc.
On an official trip to Moroni on Thursday, where he attended the country’s 48th independence anniversary, President Ruto said Nairobi supports closer collaboration with the Comoros, an island nation east of the Mozambican channel.
“Kenya and Comoros stand as partners in progress, committed to deepening their collaboration for the benefit of its citizens,” President Ruto told his host Azali Assoumani, also the current Chairperson of the African Union.
Nairobi and Moroni signed a General Co-operation Agreement; an omnibus pact providing guidelines on supporting one another on key global issues such as trade, climate change and blue economy.
It will offer a “framework which the two countries will establish structured co-operation in areas such as Trade and Investment, Transport, Education, Tourism, Agriculture, Blue Economy and Maritime Security to meet the aspired social — economic growth and Africa Union’s Agenda 2063,” said a joint communique.
Initiative to Assist MS Develop NTBs Elimination Strategies is Underway (COMESA)
About 29% of Non-Tariff barriers reported through the tripartite online reporting, monitoring, and eliminating mechanism are in the intra-COMESA trade. Majority of them, 82% emanate from operational issues including on Rules of Origin while the remaining 18% are policies/measures that result in NTBs.
Currently the tripartite NTBs system, which is a joint initiative of the regional economic blocs, COMESA, the EAC and SADC is used to maintain vigilance on the NTBs as they pose the greatest hindrance to intra-regional trade.
Hence, COMESA Member States are under obligation to establish recommended institutional and regulatory frameworks by strengthening the NTB implementation framework at national level, including setting timelines for their elimination as they occur. Notwithstanding, some member States lack the capacities to report, monitor and resolve such trading disputes, according to COMESA Director of Trade and Customs, Dr Christopher Onyango: “Besides, multiple memberships to various RECs also pose a challenge to harmonizing the various mechanisms for resolving trade disputes across regional and international markets,” Dr Onyango said.
African countries generated €1.7bn in additional revenues from tackling tax evasion, illicit financial flows (Engineering News)
African countries have realised additional revenues totalling €1.69-billion owing to voluntary disclosures, the implementation of information exchange mechanisms, and rigorous offshore investigations, the ‘2023 Tax Transparency in Africa‘ progress report, published by the Africa Initiative, shows.
From 2009 to 2022, these measures have effectively boosted tax revenue, interest and penalties, underscoring a substantial progress in tax transparency across the continent, development finance institution the African Development Bank (AfDB) reports.
The release of the report comes as African governments continue to step up efforts to bolster domestic resource mobilisation in the face of economic headwinds that include global inflation and mounting debt levels. Developed economies bloc the Organisation for Economic Cooperation and Development (OECD) estimates that Africa loses as much as $60-billion each year in illicit financial flows.
SEFA elevates hydropower modernisation as an accelerator of Africa’s Energy Transition (AfDB)
The African Development Bank-managed Sustainable Energy Fund for Africa (SEFA) has showcased hydropower as a key element of meeting the accelerating demand for renewable energy at the Africa Energy Forum held in the Kenyan capital. The Africa Energy Forum took place in Nairobi from 20-23 June, organised by Energy Net with support from the Government of Kenya, the African Development Bank, IFC and other partners.
A session titled ‘Hydropower Modernisation to Accelerate Africa’s Energy Transition’ posited that renovating existing hydropower infrastructure represents a compelling opportunity. This is because greenfield hydropower projects have high upfront costs, and significant environmental and social impacts, leading to long lead times before they come onstream.
African Development Bank Director for Renewable Energy and Energy Efficiency, Dr, Daniel Schroth, who moderated the session, said: “Modernising existing hydropower assets are accelerator for Africa’s energy transition and it increases the availability of dispatchable renewable energy in a relatively short period of time while providing opportunities for integrating variable renewable energy sources, such as floating solar.”
The Arab-Africa Trade Bridges Program Launches AATB Food Security Program (Afreximbank)
The Executive Committee of The Arab-Africa Trade Bridges (AATB) Program, a multi-donor, Inter-regional program, launched a US$1.5 billion Food Security Program to address the issues of food insecurity in the Arab and African regions amidst the ongoing global food security crisis. The crisis is a critical challenge facing the world today and continues to be a top priority on the international development agenda.
By emphasizing its special interest in the food sector, AATB aims to leverage its expertise, resources, and partnerships to implement targeted engagements that address the specific challenges faced by member countries. The Food Security Program is developed around the four pillars of the AATB Program, namely Trade, Investment, Insurance, and Infrastructure. In addition, the program incorporates a fifth element, which is capacity development and technical assistance, serving as a cross-cutting theme and an enabling factor. As part of the program, funded and unfunded financial transactions related to food security will be provided, alongside capacity development and technical assistance services.
South African bank highlights importance of US-Africa business summit (Engineering News)
South Africa‘s Standard Bank (not to be confused with the now-unrelated UK-based Standard Chartered Bank) has highlighted the importance of the US-Africa Business Summit, which will run from Tuesday (July 11) to Friday this week. The summit will take place in Botswana, and is expected to involve some 1 000 participants from across Africa and the US, including representatives of the public and private sectors, including senior government officials, Cabinet Ministers (including from the US) and African Heads of State.
“There is immense potential for stronger ties and greater mutual benefit between the world’s biggest economy and Africa,” stresses Standard Bank Group CEO Sim Tshabalala. “Achieving this will require greater levels of collaboration, access and participation, which is precisely why this summit will be so valuable.”
G20 nations raked in $50bn in debt repayments from poor countries since Covid, report finds (Yahoo News)
Debt-stricken nations that are also highly vulnerable to the climate crisis have paid a staggering $50bn (£39bn) to G20 creditors since the onset of the Covid-19 pandemic, according to a new report.
The analysis, conducted by the International Institute for Environment and Development (IIED), sheds light on the financial burden faced by the world’s poorest and most climate-vulnerable countries, as they grapple with repaying debts to the 20 richest nations of the world. The report, based on the latest data from the World Bank, comes ahead of the upcoming meeting of G20 finance ministers and central bank governors in Gandhinagar, India.
The analysis reveals that the payments made by 58 Least Developed Countries (LDCs) and Small Island Developing States (SIDS) reached $21bn (£16bn) in 2022, marking an increase from $14bn (£11bn) in 2021 and $13bn (£10.3bn) in 2020.The rising debt repayments mean that the world’s poorest countries, which also face the biggest risks from the worsening climate disasters, are trapped in an ongoing cycle of financial burden.
How to narrow the investment gap for global goals (UNCTAD)
To shore up funding for the UN Sustainable Development Goals (SDGs), countries need more proactive and tailored services for investors. An estimated $4 trillion is required in developing countries annually to achieve the SDGs.
A new UNCTAD publication entitled “Facilitating investment in the Sustainable Development Goals” outlines how investment promotion agencies (IPAs) can be a game changer, as they are the focal point for government-wide efforts to facilitate foreign investment. UNCTAD recommends ways for IPAs to help bolster SDG implementation through investment facilitation.
“They (IPAs) can do this by ensuring that investment facilitation services are inclusive and address the specific needs and opportunities of SDG-related sectors as well as of specific investor groups that have a high SDG impact, such as social entrepreneurs and women, youth and rural investors,” the publication says.
Goods Council reviews work on MC12 follow-up (WTO)
At a meeting of the Council for Trade in Goods on 6-7 July, WTO members discussed how the Council should move forward in implementing some of the outcomes of the 12th Ministerial Conference (MC12) related to improving the functioning of the Council and its subsidiary bodies. The Goods Council also continued discussions on the Least-Developed Countries (LDC) Group’s proposal concerning countries graduating from LDC status and revisited 37 trade concerns raised in previous meetings.
Fisheries subsidies chair opens fourth “Fish Week” to help distil elements for negotiation (WTO)
The chair of the fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, on 10 July opened the fourth of a series of “Fish Weeks” with the aim of seeking WTO members’ views on what elements from the various documents before members, including new proposals, would form the best basis for text-based discussions in the fall. Deputy Director-General Angela Ellard acknowledged the progress made but also affirmed the need to deepen discussions at this last Fish Week before the WTO’s August break.
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South Africa’s agricultural sector recorded significant decline in the first quarter (Engineering News)
The Bureau for Food and Agricultural Policy (BFAP) has highlighted, in a brief report, that, while the total South African economy avoided a technical recession during the first quarter of this year, with national gross domestic product (GDP) rising by 0.4%, the same could not be said for the agriculture, forestry and fisheries sector. This sector experienced a year-on-year decline of 5.4% and, quarter-on-quarter, dropped 12.3%.
Of the sub-sectors of agriculture, the one that made the biggest contribution to total agricultural revenues was animal products, accounting for 56%. Quarter-on-quarter, animal products’ GVP grew by 9.4%. The components of the sub-sector which recorded the highest growth rates were pork (27%), milk (20%) and poultry (19%). In all three cases, this was due to higher prices for these products. On the other hand, the sub-sector components which saw the biggest declines were sheep, wool, and beef, which contracted by 11%, 9% and 3%, respectively. “Relative increases in all livestock inputs have been higher than that of livestock output prices, which implies that revenue gains did not translate into GDP gains,” cautioned the BFAP.
Africa needs to rapidly expand, diversify its industrial capacity – President Ramaphosa (SAnews)
President Cyril Ramaphosa has challenged African leaders to shift their focus from being producers of raw materials processed elsewhere. The President further called on the continent to be manufacturers of their own goods and to rebuild their industrial capacity to serve the growing young population. The President was speaking on Thursday in the Democratic Republic of the Congo (DRC) where he kicked off his working visit at the invitation of President Félix Tshisekedi.
“We need to shift away from simply being producers of raw materials that are processed elsewhere in the world. Africa’s appetite for industrialisation has been whetted.” He believes that the new investment in factories and logistics systems can power higher levels of growth and jobs.
“South Africa and the DRC can be leaders in this important project of ensuring African raw materials are processed on the African continent. “We can combine our raw materials and skills, our technology and capital, our young people, and universities into a powerful drive to industrialise.”
The Senior Officials from the Southern African Customs Union Member States (Botswana, Eswatini, Lesotho, Namibia and South Africa) and Mozambique (SACUM), and the United Kingdom of Great Britain and Northern Ireland (UK) held the Second Meeting of the Trade and Development Committee (TDC) under the SACUM-UK Economic Partnership Agreement (SACUM-UK EPA), virtually on the 5th April 2023.
The TDC took stock of actions resulting from its first meeting, in pursuance with its obligations to facilitate and supervise the implementation of the Agreement. This included consideration of the multilateral safeguard’s exemption, development of the Rules of Procedure for the institutions established under the Agreement, the selection of arbitrators, as well as other work undertaken in progressing the Built-in-Agenda (Article 117) and the Transitional Implementation Arrangements (Article 118).
Under the Built-in Agenda, the Parties noted that links to updated tariff schedules had been exchanged and work was continuing on exchanging information on the Tariff Rate Quota (TRQ) utilisation data. The Parties further noted SACUM had submitted proposals on export taxes, and the scope and volume under the automatic derogation for tuna. Consolidated information had also been shared by the SACU Member States on Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) Regimes, and capacity building needs respectively.
Kenya’s first quarter food import bill rises 58.4pc to $569m (The East African)
Kenya’s food import bill in the first quarter of the year rose 58.4 percent to hit Ksh80.2 billion ($569.4 million), nearly matching what was fetched from exporting food. The latest data from the Kenya National Bureau of Statistics (KNBS) shows the imports rose from Ksh50.6 billion ($359.25 million) in a similar period last year as the country shipped in more volumes of commodities such as rice, wheat and processed food.
The rise came in the period food imports increased by 10.4 percent to Ksh87.5 billion ($621.23 million), leaving the gap between exports and imports at Ksh7.3 billion ($51.83 million)—one of the narrowest in the recent past. Kenya’s spending on food imports in the first three months of 2021 was about 64 percent of the money received from food exports, with the difference between the two at Ksh28.6 billion ($203 million). However, food imports have been growing at a faster pace than that food exports to cut the difference to Ksh7.3 billion in the three months ended March 2023.
Setting the Stage for Implementation of the Financing Model for MSMEs for the Kingdom of Eswatini (UNECA)
An inclusive financing model for MSMEs was developed with technical assistance from the Economic Commission for Africa to alleviate a key constraint for Micro, Small and Medium Enterprises (MSMEs): that of access to finance. Although it is estimated that MSMEs in Eswatini have the potential to provide employment opportunities to more than 65 percent of the workforce and contribute over 50 percent of GDP; this potential remains unfulfilled.
MSME Director in the Ministry of Commerce, Industry and Trade, Mr. Mluleki Dlamini, indicated that an inclusive financing model for MSMEs was launched during the height of the COVID-19 pandemic on 1st September 2021 with the goal of expanding access to funding, supporting MSMEs’ growth and solving the issues in the MSME financing ecosystem.
In her opening remarks, Ms. Olayinka Bandele, Chief, Inclusive Industrialization Section, ECA, Sub-regional Office for Southern Africa highlighted that “MSMEs are cornerstones of inclusive and sustainable development, with the potential to significantly accelerate industrialization and support high-value-addition activities. They have an immense potential to promote domestic-led growth in nascent and established industries, to strengthen the resilience of the economy in a challenging environment, and to contribute considerably more to employment and poverty reduction.”
SADC launches Success Stories for Lesotho (SADC)
The Southern African Development Community (SADC) on 5 July, 2023 launched the SADC Success Stories publication for the Kingdom of Lesotho which contains stories on the programmes and benefits derived from the implementation of the SADC Regional Integration agenda.
Hon. Dr. Matlanyane added that the Lesotho SADC Success Stories will assist in building SADC visibility, which in turn, will engender collaboration and partnership in the implementation of the SADC regional integration agenda.
The Minister encouraged members of the media fraternity in Lesotho to continue reporting stories on SADC regional integration, drawing from examples of the stories contained in the Lesotho SADC Success Stories. On this point, the Minister took the opportunity to sensitise and encourage journalists in Lesotho to participate in the SADC Media Awards by focusing on positive stories that promote and deepen SADC regional integration and development.
Among other stories, the publication highlights the implementation of improved efficiency due to fast-track declaration of goods and travel, and better traffic control following the implementation of a coordinated border management project, among others. It also highlights the implementation of Cross Border Money Transfer Project between Lesotho and South Africa which has been hailed as one of the cheapest cross-border products in the world. On shared watercourses, the publication highlights the implementation of initiatives to preserve Lesotho’s most valuable resource, water, referred to as Lesotho’s ‘white Gold’.
EAC Common External Tariff changes released (The Citizen)
Tanzania has identified imported goods that will be taxed under the East African Community (EAC) Common External Tariff (CET) in the current fiscal year. These include sugar, cooking oil, clothes and footwear, and buses for transportation. The country’s tariff rates will slightly differ from those that will be applied by fellow partner states in the seven-nation bloc.
The new import duty rates are among those approved by the EAC secretariat and were expected to be applicable from July 1st this year to June 30th, 2024.
Tanzania will grant stay of application of the EAC CET rate of 100 percent or $460/MT, whichever is higher, and apply a duty rate of 35 percent for one year on cane sugar imported under a permit issued by Tanzania Sugar Board. Rwanda is granting stay of application for EAC CET of 100 per-cent, or $460 per tonne, for the same commodity. It will instead apply a duty rate of 25 percent. Uganda is also charging a rate of 25 percent on sugar (for industrial use), while Burundi will exempt the same from tax.
Mixed reactions as EAC govts roll out budgets (The New Times)
East African governments in June presented their most ambitious budgets yet, which are expected to take effect this month, seeking to strengthen their economies, finance key government operations and repay existing debts.
However, despite a notable increase, economists are warning the region’s citizens to brace for tough times as the fiscal measures proposed in the 2023/24 budgets show little to no signs of further lowering the cost of living and some measures causing investor flight in the region’s biggest economies.
Alex Mapaunda, Tax Advisor at Deloitte based in Tanzania pointed out, the budgets have also highlighted the pursuit of supporting economic recovery in respective countries.
“We have been seeing growth rates of three percent and four percent but now countries are shooting for six percent to seven percent, for this year.”
Strengthening African Aviation: African Development Bank Collaborates with Airbus and ATR (Airspace Africa)
Air travel in Africa has faced significant challenges due to the impact of the Covid-19 pandemic, limited access to credit, and high operating costs. In a bid to address these issues and boost the continent’s aviation industry, the African Development Bank (AfDB) recently held workshops with aircraft manufacturers Airbus and ATR. The workshops focused on exploring avenues to strengthen access to finance for African airlines and developing financing instruments tailored to Africa’s aviation needs.
Air travel in Africa remains unaffordable for many due to high operating costs and limited passenger traffic. To increase profitability, carriers have been forced to raise fares, leading to intra-Africa flight prices that are 2-3 times higher compared to other regions. Furthermore, a significant portion of air traffic is concentrated in a few airports, such as Cairo, Johannesburg, Casablanca, and Addis Ababa, leaving many routes underserved. This situation highlights the need to enhance connectivity and expand air transportation across the continent.
Despite the challenges, Africa’s economies are projected to recover from the pandemic, presenting opportunities for growth in the aviation industry.
According to the 2023 Tax Transparency in Africa progress report unveiled at the 13th Meeting of the Africa Initiative in Cape Town today, African countries have realised additional revenues totalling €1.69 billion thanks to voluntary disclosures, the implementation of information exchange mechanisms, and rigorous offshore investigations.
From 2009 through 2022, these measures have effectively boosted tax revenue, interest, and penalties, underscoring a substantial progress in tax transparency across the continent. The report—co-produced by the Global Forum on Transparency and Exchange of Information for Tax Purposes, the African Union Commission and the African Tax Administration Forum, with support from the African Development Bank—presents the progress of 38 African countries in tackling tax evasion and other illicit financial flows (IFFs) through transparency and exchange of information. Five non-member countries participated in the study.
South Africa’s Minister of Finance Enoch Godongwana commended the Africa Initiative in his opening remarks. “During the past eight years, the Africa Initiative has changed the tax transparency landscape in Africa and aided the mobilisation of more than €300 million in domestic resources,” he said. Stressing the importance of political will in efforts to increase tax transparency, Godongwana said, however, that more could be done. He called for the Africa Initiative to strengthen African countries’ capacity to leverage exchange of information standards and protocols.
India is not ‘extractive economy’ and is not pursuing ‘narrow economic activities’ in Africa: Jaishankar (The Hindu)
In a veiled attack on China, External Affairs Minister S. Jaishankar has said that, unlike some other countries, India is not “an extractive economy” and it was not pursuing “narrow economic activities” in the resource-rich African continent.
“Today we want to see Africa grow. We want to see African economies grow. And our approach to Africa today is to trade more with Africa, invest in Africa, work with Africa, to create capacities in Africa, so that the rise of Africa also takes place as countries like India are rising in Asia.”
“We are not here as an extractive economy. We are not here in the manner in which a lot of other countries are there for very narrow economic objectives. For us, this is a broader, deeper partnership,” Jaishankar said, in an apparent reference to China’s forays, including those of its military, into Africa.
On trade, Jaishankar said that “Our trade with Africa is $95 billion... I can predict very confidently that.. will grow very rapidly in the community and they will grow rapidly in the coming decade for three reasons. One, the Indian economy, Indian businesses are going up more and more.”
“That’s one reason for demand in Africa. Now, it is up to us to meet that Africa will have a demand. We have to compete, you know, maybe they’ll go to China, Europe or Turkey. But if Indian business is more and more competitive if people are willing to go out more and more, I think a large part of the demand will be met,” he said.
Indo East Africa expo to unveil new trade opportunities (The Star)
The highly anticipated Indo East Africa Trade Expo 2023 kicked off today at the Tsavo Ballroom, KICC in Nairobi, Kenya. Running from 5th July 2023 to 7th July 2023, this prestigious event brings together a diverse range of Indian businesses and offers a unique platform to explore and leverage the latest trade opportunities between India and East Africa.
The Indo-East Africa Trade Expo serves as a gateway for fostering strong trade partnerships, encouraging collaboration, and promoting economic growth between India and East Africa.
“This Expo serves as a vital platform for participants to meet, network, and forge strategic alliances, ultimately boosting bilateral trade between India and East Africa,” said Dr Sonveer Singh, Founder Chairman Rajasthan Association of Kenya the spokesperson for the event
Russia-Africa Summit: One More Opportunity for Raising Trade Collaboration (Business Post Nigeria)
Russia holds an African leaders’ gathering this late July 27-28 in St. Petersburg, the second largest city in the Russian Federation. The summit is the highest historical profile and the largest-scale diplomatic landmark event in Russia’s bilateral relations with Africa. In our assessment of the emerging multipolar world, the majority of African states are swiftly aligning their policy orientation toward China and Russia.
Russian Ambassador-at-Large and Director of the Secretariat of the Russia-Africa Partnership Forum Oleg Ozerov, in an interview with Kommersant daily newspaper, explicitly explained that the summit is “envisioned by the Russian authorities, are intended to boost Moscow’s relations with African countries, contacts with which are currently deemed one of the most important aspects of Russia’s foreign policy.”
In the views of many policy experts, both local and foreign, African leaders, trade organizations and corporate business executives have an extraordinary opportunity to design a well-timed strategy to take advantage of the growing market and to boost trade as a way to reverse considerably trade imbalance that has existed from Soviet days between Russia and Africa.
Within the global changes, there are equally good business perspectives for Russia and Africa, for instance, with trade facilitation and support for business enterprises, either small or medium, to seek cooperation in areas of new trade opportunities both in Africa and in the Russian Federation.
UN-brokered grain and fertilizer deals ‘indispensable’ to global food security (UN News)
In a statement issued by his Deputy Spokesperson, António Guterres reiterated “the importance of full and continued implementation” of the agreements signed last July in Istanbul, known as the Black Sea Initiative – allowing Ukrainian grain and foodstuffs safe passage to world markets – and the Memorandum of Understanding with Moscow over fertilizer exports.
Russia is still weighing up if it will continue to be a part of the deal, agreed with Ukraine and administered along with the UN and Türkiye, past a deadline of 17 July. Last May, Russia had agreed to a 60-day extension, and the UN has been leading negotiations to ensure its continuation.
The UN chief’s statement said it was vital to ensure that food and fertilizers from Ukraine and Russia can keep on heading to countries in need, “smoothly, efficiently and at scale”. “These agreements are an all-too-rare demonstration of what the world can do when it puts its mind to the great challenges of our time,” he said. “Together, the agreements are contributing to sustained reductions in global food prices, which are now more than 23 per cent below the record highs reached in March last year.”
IMO adopts new net-zero plan for “close to 2050” (Ship Technology)
The International Maritime Organization (IMO) has adopted a new plan to reduce greenhouse gas (GHG) emissions from the global shipping trade. The 2023 IMO Strategy on Reduction of GHG Emissions from Ships includes the “common ambition to reach net zero… close to 2050”.
There are several interim targets along the way to 2050, including a 20% GHG cut by 2030 and at least 80% by 2040. All the targets are made in comparison to the 2008 GHG figures. In setting its targets for the global industry, the IMO said its targets provide “a needed incentive while contributing to a level playing field and a just and equitable transition.”
The IMO said a goal-based marine fuel standard regulation and a maritime GHG emissions pricing mechanism would be developed and finalised by IMO members, but only an agreement to install future regulation was signed at this week’s Marine Environment Protection Committee (MEPC 80).
STDF Annual Report: Adapting and learning to facilitate safe trade in food (WTO)
In response to the changing global landscape, the STDF has actively collaborated with government institutions, international organizations and development partners across agriculture, health, environment, and trade and development sectors to enhance compliance with international food safety, animal and plant health standards and facilitate safe trade in food.
“The STDF is working to create a world where food traded is safe and secure for all, and also to facilitate the compliance of relevant standards by developing countries’ exports” said WTO Deputy Director-General, Jean-Marie Paugam.
“Compliance with SPS requirements is already a major challenge for many developing countries. Climate change is making this even more difficult. Strengthening developing countries’ SPS systems, including capacities to monitor and control new pests and diseases, is more important than ever and will contribute to increased food production and food security,” said Melvin Spreij, Head of the STDF.
Investment facilitation negotiators announce deal on Agreement’s text (WTO)
WTO Director-General Ngozi Okonjo-Iweala welcomed this major achievement towards concluding an IFD Agreement, which aims at attracting and retaining more and higher quality investment, taking into account the respective development priorities of members.
“This represents a momentous achievement,” said DG Okonjo-Iweala, highlighting that the text is the product of discussions among more than 110 participating members, including 80 developing economies, 20 of them least-developed countries (LDCs). In addition, out of the roughly 70 text-based proposals, two-thirds came from, or were co-sponsored by, developing or LDC members, noted the Director-General.
“The proposed IFD Agreement would not just help WTO members attract and retain more investment, but also higher-quality investment,” added DG Okonjo-Iweala. “By enhancing transparency, accountability and good governance in investment procedures, the Agreement fosters a business climate more conducive to sustainable development. The text also contains provisions addressing “Responsible Business Conduct” and “Measures Against Corruption” — again breaking new ground within the WTO.”
Co-convenors of e-commerce negotiations review progress, reflect on way forward (WTO)
DG Okonjo-Iweala added: “These negotiations are breaking new ground worldwide in that they are the first initiative to bring so many members to the negotiating table on such a comprehensive list of e-commerce-related issues. But I do want to sound a warning: you don’t have too much time. The developments in the digital area are going so fast.”
The prospects for international investment looked extremely gloomy last year, with rising inflation, fears of recession and turbulence in the financial markets causing investor uncertainty around the world, putting many investment plans on hold at the beginning of 2022. However, In the end, international investment flows suffered but proved more resilient than expected.
The major disparities in global investment patterns remained. The growth of investment in developing countries is concentrated in a small number of large emerging economies. Foreign direct investment flows to many smaller developing countries are stagnant, while flows to the least developed countries fell by 16 percent from an already low base.
Developing countries only attracted foreign direct investment in clean energy worth only $544 billion in 2022. Developing countries face an investment gap of $2.2 trillion annually for the energy transition, out of a $4 trillion annual funding gap for the Sustainable Development Goals. So we are making a strong call for massive investment in renewable energy so developing countries can make the energy transition they need.
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Inaugural EU-Rwanda Business Forum attracts over 600 participants during two days of exploring trade and investment opportunities (European Union)
Over 100 business leaders from the European Union (EU) participated in the first ever EU-Rwanda Business Forum to engage the Rwandan private sector and explore trade and investment opportunities in the country.
The Right Honourable Prime Minister of Rwanda, Dr. Édouard Ngirente officially opened the forum noting: ”Over the years, we have seen investments, with the EU as the largest source, yield tangible results in Rwanda. Between 2018 and 2022, investments worth over US$ 870 million were registered in Rwanda. These investments are transforming the lives of our people through job creation and empowering the private sector, which is a key driver of economic growth.”
On his part, Koen Doens, EU Director General for International Partnerships noted that Africa plays a key role in addressing global challenges through private sector investments. “The global supply chain is reliant on a limited number of countries, which makes it very fragile when challenges happen. This is why we are looking at diversification and see Africa presenting huge opportunities to address these challenges. Rwanda has put in place the right regulatory environment and is attracting investments. The Government has positioned itself on a number of critical issues as a regional hub and do hope that this forum creates the right dynamic to move forward as soon as possible,” he explained.
The Department of Trade, Industry and Competition (the dtic) is pleased to announce the upcoming African Growth and Opportunity Act (AGOA) Provincial Consultative Dialogue, themed “Understanding the Benefit of AGOA to SA Exporters.” These consultative dialogues aim to engage with AGOA beneficiary export companies and identify the challenges faced by exporters, fostering productive dialogue and collaboration. In the first phase, the consulative dialogues will be rolled out across five provinces: Gauteng, KwaZulu-Natal, Eastern Cape, Limpopo, and Western Cape.
AGOA, which is a piece of legislation that was passed by the United States (U.S.) Congress in May 2000. It provides eligible sub-Saharan African countries with duty-free access to the U.S market for over 1,800 products, in addition to the more than 5,000 products that are eligible for duty-free access under the Generalised System of Preferences program. The dialogues will provide a platform for exporters to gain a deeper understanding of AGOA and its immense potential to drive trade and investment in the region.
The symposium will focus on the following key areas: Enhancing knowledge and understanding of AGOA regulations and requirements. Identifying barriers and challenges faced by exporters Providing guidance on accessing support services, incentives, and resources available to exporters.
Kenya’s imports from Tanzania at 3-year low on fresh trade fights (Nation)
Kenya’s imports from Tanzania dipped to the lowest level in three years between January and March partly on renewed trade tensions between the two neighbours, bucking a trend of gains under truce deals by retired President Uhuru Kenyatta and his Tanzania counterpart Samia Suluhu.
The value of goods ordered from Tanzania dropped for the second quarter in a row to Sh7.89 billion in the first quarter of 2023, which is the lowest since the second quarter of 2020 when the imports were reduced to just Sh5.21 billion due to Covid-19 restrictions.
Tanzania is the third largest exporter of goods to Kenya in Africa only behind her East African Community (EAC) fellow Uganda and South Africa which is now the leading exporter of goods to the country on the continent.
Zim, Bots moot export corridor (The Standard)
The Agricultural Marketing Authority (AMA) is negotiating with its Botswana counterpart to establish an export corridor that will see local horticultural players exporting their products to the neighbouring country.
Speaking after meeting a Botswana Agricultural Marketing Board (BAMB) delegation in Harare last week, AMA chief executive officer Clever Isaya said modalities were already in place for local farmers to export their produce to Botswana. “We should take advantage of the fact that demand for local horticultural products is high in Botswana. Our objective is to grow trade between Botswana and Zimbabwe, and by engaging BAMB we have the right partner to achieve that,” he said.
Head of the Botswana delegation only identified as T Baitshoki said even though local horticultural products, especially fruits and vegetables, were already in Botswana, there was room for expansion. “I have no doubt that Zimbabwe has the capacity to supply the Botswana market. What is now required is for Zimbabwean farmers to take advantage of existing bilateral relations between the two countries to cement trade relations,” Baitshoki said.
Rwempasha border ‘will boost trade, help curb illegal crossings’ (The New Times)
Residents in Rwempasha sector, Nyagatare District, can now enjoy the convenience of shorter travel distances to and from Uganda with the reopening of Rwempasha border post. The border post, which officially opened on Wednesday, July 5 aims to encourage cross-border trade and reduce illicit movements between residents of Rwempasha, Musheri, and their Ugandan neighbours.
Angelique Mukamana, a resident of Rwempasha, expressed her excitement as one of the first individuals to cross the reopened border. She highlighted the opportunities for cross-border business that have emerged with the reopening.
“I now have easy access to buy lotion at a nearby location in Nyagatare. It’s beneficial for all of us. Business in our area will flourish since most traders previously hesitated due to high transportation costs to Kagitumba or Buziba from Rwempasha.”
Ex-minister urges Nigerian shipowners to concentrate on tanker trade (ZAWYA)
Chairman of Integrated Oil and Gas Company, Captain Emmanuel Iheanacho, says it will be beneficial if Nigerian shipowners operating in the oil and gas sub-sector concentrate more on the tanker trade than operating liner services.
Speaking on shipping services and the better options, Iheanacho said “From my experience, one area we should have just mastered easily, arising from the activities involved is the tanker trade, because the tanker trade is so easy, you carry only one cargo, one Bill of Lading.
if you were operating a liner service, which requires you to carry thousands of containers and in each container you have more thousands of small goods; you have the administrative requirement to sort all of those things out and also be at the port promptly to the owners of the cargo. “There is really a lot that we could have done to harvest and to develop our shipping potentials, which can still be done.”
AfCFTA: South Africa seeks seamless intra-Africa trade (Peoples Gazette)
South Africa’s Business Council of the BRICS has called on African governments to ensure the seamless movement of goods and services across the continent to improve trade and investments. “To improve trade and investments in Africa, enabling easier mobility between business communities is important,” stated the council chairman, Busi Mabuza. She made the call at a business roundtable and dialogue session organised by the South African consulate general in Lagos and Brand South Africa.
Ms Mabuza said peculiar visa regimes of each African country should be reviewed to encourage Africans to travel across the continent unimpeded. She stressed that Africans must realise that trade could improve only when there were interactions.
Ms Mabuza identified lack of finance as the major challenge the organisation had been confronted with. She noted that trade between South Africa and other member nations of the BRICS had almost doubled over the past five years. Ms Mabuza assured South Africa would explore trade opportunities in agriculture, tourism and aviation.
“The components of trade are not in our favour yet because we still export raw materials, but we want to improve on value addition so as to close the trade gap in the next 10 years,” she said.
South Africa, Nigeria eye mutual benefits from AfCFTA, strengthened trade relations (SABC News)
The African Continental Free Trade Area (AfCFTA) presents significant opportunities for South Africa and Nigeria, according to Evelyn Ngige, the Nigerian Permanent Secretary for Industry, Trade, and Investment. Ngige’s remarks came during her visit to South Africa, where the West African nation seeks to enhance trade relations with its southern counterpart. The Nigerian High Commission hosted the meeting to foster partnership between the two continental giants.
With a focus on strengthening trade ties, South Africa and Nigeria, recognised as the two largest economies in sub-Saharan Africa, are placing their hopes on the AfCFTA to rejuvenate their economies. Ngige emphasised the numerous benefits of AfCFTA, including increased intra-Africa trade, skills transfer, cross-border expansion, socio-economic development, comprehensive border management approaches, and the boost to trade and tourism in both countries and the wider continent.
Lekki deep sea port promotes AFCFTA gains, but local communities seek environmental protection (Premium Times Nigeria)
The Lekki Deep Sea Port seeks to position Nigeria for the big gains of the African Continental Free Trade Area (AFCFTA), competitive transhipment, and status upgrade as the maritime hub of West Africa, but neighbouring local communities also want a share of this prosperity and protection against adverse sustainability and human rights issues.
The Lekki Port LFTZ Enterprise Limited was the Special Purpose Vehicle awarded the concession to develop the deep sea port in 2011, according to Dinesh Rathi, the MD of Lagos Free Trade Zone. It took five years to get all required registration permits and documentation before the commencement of the 27 months of construction and completion of phase 1 of the Lekki Deep Sea Port, located 65km east of the Lagos Free Trade Zone.
Prior to the operationalisation of the port, which recently acquired the status of a transhipment hub, the African continent lacked a regional trading hub aside from South Africa, which may be described as the trading hub for Southern Africa. The emergence of the deep seaport in Nigeria positions it on the path to acquiring the status of West Africa’s trading hub.
Before its operation, significant revenue had been lost due to bottlenecks in Nigeria’s maritime sector as neighbouring countries had become the preferred berthing and transhipment points. As a result, landlocked nations like Chad and the Republic of Niger, which previously used Nigeria’s ports as transit hubs for their shipments, switched to neighbouring Ghana, Togo, Benin Republic, Côte d’Ivoire, and Cameroon.
With an estimated return on investment of 230 times the cost of the project, the creation of about 170,000 jobs when in full operation, and revenue to federal and state agencies of $201 billion, the country will be more competitive under the AFCFTA, but neighbouring communities around the deep seaport do not want to be left out of these gains and protection against sustainability issues and human rights issues.
PM points path for TZ to exploit AfCFTA opportunities (Tanzania Daily News)
Prime Minister Kassim Majaliwa has issued several directives to improve the business environment and encourage traders to take advantage of the opportunities presented by the African Continental Free Trade Area (AfCFTA) to expand their businesses.
He said the government continues to address various challenges aimed at improving the environment of doing business in the country, by reviewing several laws, policies and regulations.
He added, “For those who have products that meet the standards and criteria are encouraged to start registering through the Ministry of Investment, Industry and Trade in order to benefit from this market. It is important to make a sincere effort to reach these markets”.
African Integration Day 2023 (African Union)
The African Union led by the Department of Economic Development, Tourism, Trade, Industry, Mining (ETTIM) will commemorate the African Integration Day 2023 under the theme ”Accelerating Job Creation, Digital and Financial Inclusion in the AfCFTA market”
A historic milestone for regional integration in Africa was recorded on 1 January 2021 with the start of trading under the African Continental Free Trade Area (AfCFTA). The remarkable speed of negotiations, signature, ratifications and entry into force of the AfCFTA Agreement took place between June 2015 and May 2019 and is unprecedented in the treaty making history of the African Union just behind the Constitutive Act of the Union. Despite the adoption and implementation of the AfCFTA, the results in attaining the objectives of the Abuja Treaty remain rather mixed with the RECs at different stages of implementation of the Treaty. In addition, more effort is needed to make the ordinary African Citizens understand and own the regional integration process.
The overall objective of the commemoration is to deliberate on how to use integration including the AfCFTA as a tool for the continent’s economic recovery due to the multiple crises and shocks due to the COVID-19 pandemic, the Russian-Ukraine crisis and its impact on the global economy as well as the challenges due to climate change inter alia. The African continent faces a more immediate threat, and this is due to the rising unemployment, especially for the 18 million youth that enter the job market every year who are unable to find jobs. It is therefore imperative for the AfCFTA implementation to specifically focus on the creation of jobs in order to drive shared prosperity across the continent.
There is a growing community of businesses, women and youth led that are keen to participate in the AfCFTA process. The Guided Trade Initiative has demonstrated that Africans are ready to trade under the AfCFTA rules and they need more support to be able to do so in large numbers. This is why enabling tools and mechanisms are critical to the acceleration of intra-African trade, which is why it is necessary to become concrete and provide specific tools that can be used to participate meaningfully in the AfCFTA.
The AUC, OECD and the AeTrade Group will also officially unveil products and services under the Smart Finance and Digital Banking Initiative endorsed by the Assembly of Heads of State and Government in February 2022. This commemoration will provide a platform that ensure broad participation of all actors at the national, regional and continental levels, including Member States, RECs, the African Diaspora, Development Partners, Academia, Private Sector, Civil Society, Women and Youth to put a spotlight on the AU Theme of the Year on accelerating the implementation of the AfCFTA.
Africa’s timber industry revival takes center stage at forest forum (Xinhua)
The urgency to revive the timber industry in Africa amid growing local demand and competition from imports was reinforced by policymakers, forestry experts and industry leaders attending a continental forum held Wednesday in Nairobi, the Kenyan capital. The status of the timber industry in Africa was one of the key themes discussed by more than 70 delegates from 26 African countries attending a week-long conference ending Friday.
Home to 16 percent of the world’s forests, translating into more than 636,000 million hectares, Africa has the potential to become a global leader in wood processing to help meet the growing demand for furniture, pulp, paper and construction materials, said the experts attending the forum organized by Nairobi-based African Forest Forum (AFF).
Suzana Augustino, a Tanzanian forestry and climate change expert, stressed that Africa’s timber industry can regain the vitality of yesteryears, subject to policy reforms and investments in new sawmilling technologies. Augustino said that strengthening institutional capacity, empowering artisanal saw millers and investing in value addition will boost the competitiveness of Africa’s timber in the international market.
SADC urgently needs to enter data agricultural revolution - says Parly speaker Mudenda (NewZimbabwe)
Southern African Development Committee (SADC) urgently needs to enter the data agricultural revolution, Parliament speaker Jacob Mudenda has said.
Addressing delegates at the 53rd SADC Parliamentary Forum Assembly in Tanzania, Mudenda said even though the region was boasting 60% of arable land, its agricultural sector had remained poor, lacking new modern mechanization techniques.
“Despite the continent boasting of 60% of arable land, its agricultural sector remains dwarfed. Why? Our agricultural sector lacks modernization and mechanization in Africa in general and in the SADC region in particular. “It is imperative, therefore, that the SADC region speedily embraces the smart agriculture ecosystem. The region should urgently enter the data agricultural revolution,” he said.
The forum assembly was running under the theme, Modernising Agriculture to address Food Insecurity and Youth Unemployment in the SADC Region: The Role of Parliaments. Mudenda told delegates that SADC needed this technological shift more than ever. “These smart agricultural technologies would ensure that the small holder farmers who comprise 60% of the farming population access them.
Africa aviation set for major transformation (The Chronicle)
Africa’s commercial aviation is set for major transformation after the African Development Bank (AfDB) held discussion workshops with aircraft manufacturers — Airbus and ATR — to explore ways of strengthening access to finance for African airlines. The Pan African bank is studying the feasibility of setting up an aircraft leasing platform. Operating leases account for more than 45 percent of operational fleets worldwide.
The Covid-19 pandemic had a negative blow on the continent’s air travel. Before its onset, African aviation represented a roughly three percent share of the global market, although the continent has 17 percent of the world’s population, said the bank. However, Africa’s economies are expected to rebound to growth from the pandemic.
AfDB said owing to a difficult operating environment that includes constrained access to credit, only a few African airlines are profitable.
International tax standards critical to combating illicit financial flows (SAnews)
Finance Minister Enoch Godongwana says tax administration tools are imperative to countering illicit financial flows and ensuring that governments can continue to collect revenue and serve society. He was addressing the 13th Africa Initiative Meeting held by Tax Transparency in Cape Town on Thursday.
The Minister highlighted that in Africa, illicit financial flows are costing governments between €48 billion and €77 billion – valuable resources needed for functioning governments.
The Minister reflected on the efficiency of international tax standards and how these have become an “effective tool” in curbing tax evasion and other illicit financial flows. “During the past eight years, the Africa Initiative has changed the tax transparency landscape in Africa, enabling the mobilisation of more than €310 million in domestic resources. However, continuous action is needed to ensure a long-lasting positive impact.
Can Africa pursue economic development without relying on fossil fuels? (Africanews)
While many African countries heavily depend on oil and gas exports, the continent experiences the harshest impacts of climate change despite contributing only 3% of global CO2 emissions.
The need for decarbonization is evident, with South Africa leading the way after securing $8 billion in loans for its energy transition at COP26. However, power cuts have posed challenges to the country’s industrialized economy.
According to NJ Ayuk JD, Director General of the African Chamber of Energies, an effective energy transition requires considering natural gas. African voices must be heard in climate conferences, and African leaders must take action to change the situation. The African Energy Chamber aims to play a pivotal role in fostering an African energy pact.
‘Solar is the oil of 21st century’ (The East African)
Solar is the “oil of the 21st century,” and the most powerful economies will be those that have the cheapest energy, says renowned African banker and entrepreneur Tidjane Thiam. “If we don’t participate in that (solar) revolution, America is going to have the cheapest and the cleanest energy in the world.
He was speaking at the 2023 shareholders AGM of the African infrastructure lender Africa50 in Lome, Togo, on July 3. He compared the energy revolution with the internet one, noting that production has become decentralised and hence more accessible and much cheaper.
Dr Ajay Mathur, director-general of International Solar Alliance (ISA)
noted that Africa has the best solar potential in the world, with a practical potential of 4.5 kilowatt-hour peak per day, making solar a viable alternative to meet the continent’s power needs. But they noted that investment in the sector is still negligible.
“Last year, even though globally $250 billion was invested in solar, only two percent of it came to Africa. Why? While the risk premium on Africa was relatively high, this is quite at variance with the reality: the default rates are less than two percent!”
Germany provides €10 million to NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) to boost infrastructure development in Africa (Africa Newsroom)
The African Development Bank and KfW, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), on 5 July announced the replenishment of the NEPAD – Infrastructure Project Preparation Facility (NEPAD-IPPF) Special Fund, which aims to boost regional infrastructure in Africa. The German Government will provide €10 million to replenish the Special Fund.
Germany’s support will bolster NEPAD-IPPF’s efforts towards priority areas such as green, climate-smart infrastructure and a stronger focus on the second Priority Action Plan of the Programme for Infrastructure Development in Africa for the period 2021-2030 (PIDA-PAP 2). It will also support Africa’s transformation under the Africa Continental Free Trade Area by boosting intra- and extra-African trade.
“The partnership aims to support infrastructure development with a focus on areas such as climate change, gender, Agenda 2063, and a stronger focus on attaining the Sustainable Development Goals,” said KfW Director, Christoph Tiskens.
“As economies in Africa navigate new challenges in the face of overlapping global crises, the support of partners such as Germany will enable the African Development Bank to deliver on its important development mission,” AfDB Vice-President and Chief Financial Officer, Hassatou N’Sele noted. “With the replenishment of NEPAD-IPPF Special Fund, we are determined to further support our clients while helping them realize their economic potential through increased infrastructure investments, contributing to green growth, inclusion, and job creation,” she said.
African and global institutional investors sign on to new $500m infrastructure fund (AfDB)
Prominent African and global institutional investors have signed on to the new $500 million Africa50 Infrastructure Acceleration Fund - a move described as an unprecedented milestone for Africa. The fund is the first private vehicle infrastructure platform launched by Africa50.
The fund will catalyse further investment flows to the development of critical infrastructure across the African continent, including energy, transportation, telecommunications, and water, among other areas.
Speaking at the signing event, African Development Bank president, and chair of the Africa50 board, Dr Akinwumi Adesina said: “This is impressive and a first for Africa. It is remarkable and unprecedented to have 17 African institutions participating in such a transforming initiative to invest in an African infrastructure fund. With the Fund, we are positioning the Africa50 Group to play a lead role in helping to tap into the more than $98 trillion of global assets under management.”
UN 2023 Global Survey: The rise of digital trade facilitation (Trade Finance Global)
Persisting ramifications of the COVID-19 pandemic, escalating geopolitical uncertainties, and soaring inflation continue to plague international commerce. Yet, in the face of these worldwide disruptions, nations are making significant strides towards a streamlined, efficient trade environment through the simplification and digitalisation of international trade protocols.
The latest report by the United Nations, the Fifth Global Survey on Digital and Sustainable Trade Facilitation, provides insightful data from 161 countries. It indicates that the implementation rate of both general and digital trade facilitation measures has increased by over six percentage points from 2021 to 2023, with the global average now standing at a promising 68.7%.
WTO issues new edition of World Tariff Profiles (WTO)
The WTO issued today (6 July) the 2023 edition of “World Tariff Profiles”, an annual publication providing comprehensive information on tariffs imposed on imports by over 170 countries and customs territories. The report — jointly prepared with the International Trade Centre and the United Nations Conference on Trade and Development (UNCTAD) — also provides data on non-tariff measures, such as anti-dumping actions, countervailing duties and safeguard measures.
UN urges ‘massive’ clean energy investment in developing world (Kuwait Times)
The United Nations called Wednesday for massive investment in clean energy in developing countries, saying there was otherwise little hope of achieving any climate goals by 2030. Developing countries need renewable energy investments of about $1.7 trillion annually but attracted foreign direct investment in clean energy worth only $544 billion in 2022, the UN’s trade and development agency UNCTAD said. “We cannot fulfill the world’s energy needs and safeguard our planet and our future without massive private sector investment in renewables in developing countries,” said UN chief Antonio Guterres.
“We are at least a decade late in our efforts to combat global warming. Investment in renewable energy in developing countries is therefore essential and often the most economical way to bridge the energy gap. “But while the transition to renewable energy is a global priority, investments in energy infrastructure and efficiency still fall far short of what is needed.” International investment in renewable energy has nearly tripled since the Paris climate accord was struck in 2015, UNCTAD noted in its annual World Investment Report.
OECD-FAO Agricultural Outlook 2023-32 maps key output, consumption and trade trends (FAO)
Global agricultural and food production are projected to continue to increase over the next ten years, but at a slower pace of growth than the previous decade due to demographic trends, according to a report released today by the Food and Agriculture Organization of the United Nations (FAO) and the Organisation for Economic Co-operation and Development (OECD).
The OECD-FAO Agricultural Outlook 2023-2032 is the key global reference for medium-term prospects for agricultural commodity markets. While uncertainty has risen due to geopolitical tensions, adverse climate trends, animal and plant diseases and increased price volatility for key agricultural inputs, global production of crops, livestock products and fish are projected to grow at an average annual rate of 1.1 percent during the period, half the pace recorded in the decade ending in 2015.
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Court reaffirms non-compliant imported goods not allowed to enter SA (SAnews)
The National Consumer Commission (NCC) has welcomed the decision by the Gauteng High Court, Pretoria, reiterating that non-compliant imported Clothing, Textile, Footwear, and Leather (CTFL) goods cannot enter the Republic.
The NCC said the proliferation of non-compliant clothing, textiles, footwear and leather imported goods destroys the South African textile industry. During the last financial year, the Commission issued more than 50 non-compliance notices to importers of CTFL goods. Non-compliant goods to a value of just above R18 million were either returned to the country of origin or destroyed.
The High Court also confirmed that the Commission is within its mandate to exercise its power bestowed to it by the Consumer Protection Act (CPA) by issuing a Compliance Notice where an investigation by the NCC revealed that the consignment does not comply with the provisions of the Act.
“I want to remind importers that it is their responsibility to ensure that their goods do comply with the CPA. Where the goods are non-compliant, we will not hesitate to issue non-compliances instructing Importers to either return non-compliant goods to the country of origin or destroy them,” Mabuza said.
Namibia’s economic outlook: Managing global change and taking advantage of new opportunities (Namibia Economist)
Like many other countries, Namibia is faced with a challenging economic environment created by global macro changes. The immediate financial outlook for Namibia is examined in this article. Additionally, the potential that green hydrogen as an emerging business provides, as well as the current changes in the oil industry.
The Southern African Customs Union (SACU) and increased domestic revenue have been the main drivers of Namibia’s public financing’s spectacular rebound. As a result of the increased revenue, the government can spend more money and no longer faces contractionary pressure. The budgetary outlook is becoming more stable as deficits gradually decline. The prospect for increased exports, mining output, and oil exploration are boosting inbound investment.
Tanzania secures $195m budget support from EU (The East African)
Tanzania has signed three grant agreements valued at 179.35 million euros ($195 million) with the European Union to support budget operations. President Samia Suluhu, who witnessed the signing ceremony in Dodoma on Tuesday, said the grants would accelerate the implementation of development programmes in the country.
“The money will be used to promote policy changes and industry growth in the blue economy, finance for growth, gender equity, green energy, and smart cities, as well as the renovation of rural roads in the southern highlands region,” she said.
The money, he said, is expected to contribute to the implementation of the Global Gateway, the new EU strategy to boost smart, clean, and secure links in the digital, energy, and transport sectors and to strengthen health, education, and research systems worldwide.
Kenya on the move again as economy reverses 7-straight falls (The East African)
Kenya’s economy has reversed seven straight back-to-back quarterly growth declines after pulling out of a prolonged electioneering period and a season of jobless growth defined by elevated inflation. The latest official numbers show that the economy in the three months to March posted the fastest growth in the last four quarters, defying the high cost of living driven by a prolonged drought.
The quarter to March was the first time the economy has put brakes on seven straight declines from a high of 10.3 percent in 2021 to 3.7 percent in December, pointing to glimmers of recovery from post-pandemic global supply disruptions.
The Kenya National Bureau of Statistics (KNBS) reported on Tuesday that the country’s gross domestic product expanded by 5.3 percent in the first quarter of the year, a faster pace than 3.7 percent in the previous period ending December 2022.
Egypt: 23.8% increase in trade deficit during April 2023 (ZAWYA)
Egypt’s trade deficit increased by 23.8% to $2.33bn during April 2023, compared to $1.89bn in the same month of previous year, according to the Central Agency for Public Mobilization and Statistics.
Egypt’s exports decreased by 44.9% to $3.03bn during April 2023, versus $5.50bn in the same month of previous year, due to a decreased value of some commodities such as natural gas by 75.6%, fruits by 58.8%, crude oil by 48.2%, and ready-made clothes by 34.1%. Imports value decreased by 27.4% as it reached 5.36 billion dollars during April 2023, versus 7.38 billion dollars for the same month of previous year, due to a decreased value of some commodities such as wheat by 1.4%, chemicals by 2.1%, plastics in their primary forms by 33.6%, and raw materials of iron and steel by 52.4%.
Deadline on Africa’s contested borders nears (The East African)
African countries have only four years from now to resolve their disputed borderlines. The deadline set for the demarcation or re-fixing of the territorial boundaries that have been disputed by nations is 2027.
“This is a complex and expensive matter,” said Ngoga on Sunday. “The AU is keen to ensure this is done, even though only a few countries have ratified a convention to its effect,” Frederic Gateretse Ngoga, a representative of the African Union (AU), said.
According to him, currently, there are over 100 border disputes among nations in Africa that can trigger serious conflicts if not resolved. “Unresolved border issues have the potential to escalate into violence and threaten peace and security,” he observed. Such crises can also undermine regional integration efforts by “creating insecurity in border communities and the movement of people, goods and services”.
Kenya calls for inclusion of women entrepreneurs within EAC (Kenya Broadcasting Corporation)
Kenya has called for the involvement of women entrepreneurs in trade and investment in the East African Community (EAC). According to the East African Community and Regional Development Cabinet Secretary Rebecca Miano, she considers focus on women a confirmation that the spirit of gender complementarity has slowly but surely demolished myths that hitherto held certain chores as a preserve of one gender and a no-go zone for the other. She was speaking during the inaugural East African Women’s Business and Investment Forum London.
While stressing the importance of empowering women, she noted that the 2030 Agenda for Sustainable Development prioritises women’s empowerment captured in Sustainable Development Goal Number 5 advocates for gender equality and empowerment among all women and girls.
Adding that, a 2021 treatise jointly authored by four gender experts and titled “Women’s empowerment in East Africa: Development of a cross-country comparable measure” and published in the well-respected monthly journal “World Development” contains useful insights for purposes of this forum’s discourse.
How EAC partner states plan to tax ‘10 major products’ (The New Times)
The East African Community (EAC) secretariat has issued the approved measures on import duty rates in the EAC Common External Tariff (EAC CET), which indicate different rates for given products, based on the priorities of each Partner State. They were published in the EAC Gazette on June 30, and are expected to be applicable for the current fiscal year which runs from July 1 to June 30, 2024.
According to a legal notice in the Gazette, the measures on customs duty rates on the items in question were approved by the EAC Council of Ministers in exercise of the powers conferred upon the Council under relevant provisions of the Protocol on the Establishment of the East African Community Customs Union.
Don tasks AU, ECOWAS on capacity building for Africans to embrace BRICS (Freedom Online)
The Nigerian Institute of International Affairs (NIIA) on Tuesday called on the African Union(AU) and other regional organizations to invest in capacity building for Africans ahead of their move to embrace BRICS. The News Agency of Nigeria reports that BRICS, originally named BRIC (Brazil, Russia, India, China), is an acronym for the regional economies of Brazil, Russia, India and China which in 2010 had included the letter S for South Africa.
Prof. Eghosa Osaghae, NIIA’s Director-General, made the call during a business roundtable and dialogue session organized by the South African Consulate General in Lagos and Brand South Africa. The theme for the program was “Promoting Regional and Continental Trade Through the AFCFTA and BRICS in Africa”.
Osaghae said that in view of the fact that Africans lacked the needed knowledge to leverage on the opportunities BRICS would have to offer, capacity building was highly needed.
“I challenge the AU, the Economic Community of West African States (ECOWAS) and other regional organizations to help Africans in the area of capacity building. “Nigeria is ripe to also partner with BRICS but before then, we must prepare and be well equipped with the right knowledge to harness the opportunities in the system,” he said.
Twenty five African countries facing debt risks, warns AfDB (Kenya Broadcasting Corporation)
African Development Bank (AfDB) Group President, Akinwumi Adesina has said that the rise in cost of debt servicing has led to 25 countries in Africa being at risk of either high –debt distress or in-debt distress. Adesina said African markets have had to bear the brunt from the strict monetary policies in the US and Europe.
The tough economic times has impacted interest rates and led to rising costs of debt serving. African Development Bank has warned that Africa external debt could rise from $1.1 trillion to $1.13 trillion. “As a result, the external debt service payments due for 16 African countries will rise from $21.2 billion (Ksh 3 trillion) in 2022 to $22.3c billion (Ksh 3 .1 trillion) in 2023,” said Akinwumi. Kenya ranks third among African countries in terms of government debt to gross domestic products (GDP).
The growth of continental loan obligations has been blamed on the adversities of COVID-19 pandemic and tightening their spending culture has caused these countries to downgrade. The rising costs of energy and food prices from the Russian-Ukraine war and the rising costs of adapting to climate change compounded these challenges.
Kganyago plays down common African currency (Engineering News)
South Africa’s central bank chief said adopting a region-wide common currency was a political project, and then spelled out exactly why it would probably never happen.
“What do you need to have an African currency? You need to have macroeconomic convergence,” South African Reserve Bank Governor Lesetja Kganyago said Tuesday during a wide-ranging interview with Metro FM radio.
That means getting inflation and debt levels among nations on the continent to be at similar levels, as well as consistent fiscal policies and banking rules. “Absent those, it’s impossible,” he said during an event hosted at the Soweto Theatre in southern Johannesburg.
Corruption increased in 36 African countries in 2022 - Afrobarometer (Citinewsroom)
Corruption increased drastically in 36 African countries between 2021/2022, according to a survey conducted by Afrobarometer. In these 36 countries, Afrobarometer in its report disclosed that corruption increased a lot by 46%, and increased somewhat by 12%, but stayed the same at about 20%.
“Almost six in 10 Africans (58%) say that corruption in their countries increased over the past year. The situation has worsened significantly in 12 of the 30 countries surveyed in both 2014/2015 and 2021/2022, most dramatically in Senegal (where perceptions of increasing corruption have risen by 39 percentage points), Burkina Faso (+29 points), Gabon (+24 points), Cameroon (+23 points), and Côte d’Ivoire (+22 points). On the other hand, there has been a drastic improvement in Benin, where the proportion who report that corruption increased dropped by -61 percentage points,” Afrobarometer said in its report.
Africa is key player in unilateral digital roadmap (ITWeb)
The Global Digital Compact represents a golden opportunity for Africa to shape the digital future. This was the word from Fayaz King, special advisor: office of the UN secretary-general’s envoy on technology, speaking via video link from New York, US. King addressed the UN Economic Commission for Africa’s (UNECA’s) regional review meeting on the continent’s contribution towards the Global Digital Compact.
Steered by the office of the UN secretary-general’s envoy on technology, the compact is a proposed roadmap for collective action by UN member states, which include African nations, to address the global challenges and opportunities arising from the digital revolution. It looks to establish global standardisation on the principles and guidelines for an open, free, secure and human-centred digital environment.
King said despite its challenges, Africa has had a number of successes within the digital realm, most notably mobile money. For example, the Sub-Saharan Africa region boasts 760 million accounts, which represent nearly half of the global users, he stated. As a result, the African continent is in a unique position to significantly contribute and benefit from the proposed compact, he commented. “Africa has already demonstrated innovation prowess and can lead from the front in this compact.
UN survey shows trade facilitation progress amid polycrisis (Dhaka Tribune)
Despite persisting effects of the Covid-19 pandemic, geopolitical turbulence, and high inflation that continue to challenge international trade, countries are persistently moving towards a seamless and efficient trading environment by simplifying and digitalizing formalities in international trading, a new United Nations survey reveals.
According to the fifth United Nations Global Survey on Digital and Sustainable Trade Facilitation covering 161 countries, progress has been observed in more efficient trade facilitation with the overall implementation rate of general and digital trade facilitation measures increasing by more than 6% points between 2021 and 2023, reads a press release issued on Wednesday.
The global average implementation rate currently stands at 68.7%. Crucial to the progress made globally were regional and subregional initiatives such as the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific (CPTA), the expansion of the Asean Single Window Agreement, and the African Continental Free Trade Area (AfCFTA) Agreement.
These initiatives could further support countries in gradually moving to less paper and then to paperless and cross-border paperless trade by providing a dedicated, inclusive and capacity-building intergovernmental platform.
Conversely, the 2023 survey also highlighted the insufficient adoption of sustainable trade facilitation measures and inadequate support for vulnerable groups, including the agricultural sector, small to medium-sized enterprises (SMEs) and women traders.
As Black Sea grain expiry looms, Russia rejects bank compromise (Daily Sabah)
Russia on Tuesday restated a demand for its state agricultural bank to be reconnected to the global SWIFT payments system to avert the collapse of the Black Sea grain deal, and said it would not accept a reported compromise proposal.
With 13 days remaining until the expiry of the deal, which has allowed Ukraine to export grain from its Black Sea ports despite Russia’s invasion, Moscow said there had been no progress on any of its key demands, including the banking issue.
The Kremlin said on Wednesday that it has not made a final decision about whether to extend the initiative, brokered by Türkiye and the United Nations last July.
The Financial Times reported on Monday that the European Union was considering a proposal to allow Russia’s Rosselkhozbank to set up a subsidiary that could connect to SWIFT. But Russian Foreign Ministry spokesperson Maria Zakharova dismissed the idea as “deliberately unworkable,” saying it would take many months to set up such a unit and another three months to connect to SWIFT.
Russian oil product flows to Africa jump following Western sanctions (Accelerating Progress)
Sanction-hit Russia’s refined product exports to Africa have skyrocketed since the invasion of Ukraine, increasing 14-fold in just over a year, following a diplomatic onslaught on the continent by Russian officials. Prior to the war, Russia exported 33,000 b/d of refined products to Africa, much of it gasoline. By March 2023, that had soared to 420,000 b/d.
The embargo followed independent decisions from many Western countries to halt imports of Russian oil. These sanctions have forced Russia to redirect significant oil export volumes to alternative markets, including Africa. India, China, and Turkey are also becoming increasingly important export markets.
Experts say a new “scramble for Africa” has gathered pace since the invasion began early last year, with Russia, China, the US, Turkey, Gulf states, and former colonial powers Britain and France all vying for influence on the world’s fastest-growing continent.
In the first quarter of 2022, Tunisia imported just 2,700 b/d of Russian products, but that rose to 66,300 b/d in Q1 of this year, according to S&P Global Commodities at Sea data, while Nigeria—Africa’s biggest oil producer and most populous nation—saw imports rise almost five-fold year on year to 57,400 b/d in Q1 2023.
Morocco, Libya, and Egypt have also recorded huge rises in Russian imports. “[Lavrov’s] flurry of diplomatic activity makes it abundantly clear. These steps are about Russia seeking alternative routes for their commodity exports,” Kulakhmetov added. “Therefore, North African states are playing a significant role for Russia in mitigating implications of oil and oil product ban.”
Investment flows to Africa dropped to $45 billion in 2022 (UNCTAD)
UNCTAD’s World Investment Report 2023 published on 5 July shows that foreign direct investment (FDI) flows to Africa declined to $45 billion in 2022 from the record $80 billion set in 2021. They accounted for 3.5% of global FDI.
The number of greenfield project announcements rose by 39% to 766. Six of the top 15 greenfield investment megaprojects (those worth more than $10 billion) announced in 2022 were in Africa.
In Southern Africa, flows returned to prior levels after the anomalous peak in 2021 caused by a large corporate reconfiguration in South Africa. FDI in South Africa was $9 billion – well below the 2021 level but double the average of the last decade. Cross-border M&A sales in the country reached $4.8 billion from $280 million in 2021. In Zambia, after two years of negative values, FDI rose to $116 million.
Over the past five years, FDI inflows have risen in four of the regional economic groupings on the continent. FDI in the Common Market for Eastern and Southern Africa grew by 14% to $22 billion. Flows rose also in the Southern African Development Community (quadrupling, to $10 billion), the West African Economic and Monetary Union (doubling, to $5.2 billion) and the East African Community (up 9%, to $3.8 billion).
The United Nations Conference on Trade and Development (UNCTAD) today called for urgent support to developing countries to enable them to attract significantly more investment for their transition to clean energy. UNCTAD’s World Investment Report 2023 published on 5 July shows that much of the growth in international investment in renewable energy, which has nearly tripled since the adoption of the Paris Agreement in 2015, has been concentrated in developed countries.
Developing countries need renewable energy investments of about $1.7 trillion annually but attracted foreign direct investment in clean energy worth only $544 billion in 2022, according to the report.
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TNPA publishes Port Development Framework Plans outlining R13bn of investments (Engineering News)
The Transnet National Ports Authority (TNPA) has published Port Development Framework Plans that stipulate how R13-billion will be invested in South Africa‘s commercial seaports over the next five years.
With these investments, the TNPA aims to create capacity at the ports, as well as ensure the long-term sustainability of the port system.
The framework plans followed a robust public participation process and will be used to guide port infrastructure development in the short and long term. The plans will be continuously reviewed to ensure they remain relevant and in line with international best practice.
New import rules put pressure on Kenyan car buyers (Pulselive Kenya)
In response to Kenya’s application to raise the duty under the common external tariff, the EAC Council of Ministers has given the green light, exacerbating the challenges faced by the automotive sector due to a depreciating currency.
This move, which marks an increase from the current 25 percent duty, will lead to double-digit price hikes for various imported vehicles, including those used for transportation, racing cars, station wagons, and vehicles designed for ten or more passengers.
Consequently, cars imported into Kenya will now come with a higher price tag compared to regional counterparts such as Uganda and Rwanda. The raised customs duty, once implemented, is expected to translate into approximately a 14 percent overall increase in the cost of importing vehicles.
Edible oil manufacturers fault move to reduce tariffs on imports (Nation)
Edible oil manufacturers have faulted a move to reduce tariff on finished oils coming from outside East Africa from 35 per cent to 25 per cent, saying it will create an unlevel playing field for businesses that have invested heavily in the sector.
Kenya Association of Manufacturers (KAM) edible oils sub-sector says the tariff should have been retained at 35 per cent, as opposed to the new rate set by the East African Community’s (EAC) Common External Tariff (CET), which is low by 10 percentage points.
“We thank the government for continuing the stay of application of the tariff on ready-made refined imported oils from outside EAC and Comesa at 25 per cent or USD500/MT whichever is higher in the EAC CET. The ideal would have been to retain this at 35 per cent as this is under the category of finished goods,” the sub-sector stated yesterday.
Lowering of the tariff comes barely weeks after the Ministry of Trade and Industrialization wrote to Treasury asking for the rate to be lowered to 10 per cent.
Govt finalises plan to regulate tea industry (Nile Post)
Government has developed a policy to regulate the tea industry and to address challenges affecting the tea sub sector in the country.
The ministries of agriculture and their trade counterparts developed the National Tea Policy to guide tea production, processing and to support diversification of products of tea being produced.
The policy that awaits to be submitted to the Cabinet focuses on improving access to quality agro-inputs including tea seedlings, fertilizers and herbicides, enhancing the use of modern technologies informed by research and extension services.
It also seeks to institute measures to improve harvesting, post-harvest handling and value addition, strengthening the infrastructure for the tea industry including establishing factories and other requisite machinery, improving access to affordable power supply, financial and insurance services, enhancing market access, advocacy, education, information and communication services among others.
Once approved, the tea policy will be developed as a commercial enterprise and an instrument to fight poverty through gainful agricultural employment where more investments shall be made at the lower stages of the value chain and majority of the tea stakeholders are engaged to ensure they are employed gainfully in ways that elevate household incomes and alleviate poverty.
Nigeria’s wheat production seen rising 42% (Businessday NG)
Nigeria will see a 42 percent rise in wheat production between July 2023 and 2024 owing to a competitive guaranteed price agreed between farmers and millers, a recent United States Department of Agriculture (USDA) grain report said.
The report stated that the Flour Millers Association of Nigeria (FMAN) signed a memorandum of understanding with the Wheat Farmers Association of Nigeria (WFAN) to purchase wheat at a competitive price.
Meanwhile, the Federal Ministry of Agriculture considers intercropping an effective system for increasing wheat production. As a result, farmers are increasingly adopting the rice-wheat intercrop system in northern Nigeria as traditional dry-season rice farmers switch to cultivating wheat and rice on the same plot of land.
Port deal exposes Dar inefficiencies as Dubai takes over ports (The East African)
Inefficiencies and lack of capacity to manage port facilities amid growing business has forced Kenya and Tanzania to seek the help of DP World, the Emirati logistics major which has a firm grip on the African market.
The Dubai-based company is seeking the greenlight to manage seven berths in the Dar es Salaam port and at the same time run the Mombasa Special Economic Zone, deals that would give it massive presence in Eastern Africa.
In Tanzania, the deal has brought to the fore the inefficiencies at the port of Dar – which the government acknowledged – with officials hoping that DP World could help it triple revenues from the facility to $11.2 billion over the next decade and double cargo traffic to more than 47.57 million tonnes by 2032.
Ethiopia to enact law normalizing informal cross-border trade along Djibouti, South Sudan borders (Addis Standard)
The Ethiopian government is taking strides to acknowledge and regulate the longstanding informal cross-border trade occurring along the Djibouti border. The Ministry of Trade and Regional Integration is currently introducing a law with the goal of formalizing the informal trade activities that have been existing along the border between these countries.
Kasahun Gofe, state minister of Trade and Regional Integration said on Tuesday that the ministry is currently engaging representatives of regional trade bureaus to collect inputs before the soon enaction of the law. According to him, the law will have irreplaceable role in making basic consumables accessible for the community living along border areas.
The development comes eight years after the signing of the Ethio-Djibouti border trade protocol in 2015. In January 2023, a delegation from Ethiopia, led by Kasahun Gofe, visited Djibouti to discuss the primary export items that would be allowed under the border trade agreement.
The China-Africa Trade Biennale bears fruitful results (Africanews)
The third China-Africa economic and trade expo on the theme of common development for a shared future concluded on Sunday in Changsha city, with 10.3 billion U.S. dollars’ worth of projects signed.
“The economic and trade cooperation between China and Africa has been expanding from traditional trade and engineering construction to digital, green and financial fields. In particular, the import of agricultural products from Africa shows great cooperation potential. All of these have strongly promoted the high-quality development of economic and trade cooperation between the two sides,” shared Wang Dong, deputy head, Department of Western Asian and African Affairs, Chinese Ministry of Commerce.
The four-day event has attracted over 100 000 visitors and resulted in 74 cooperative projects, a first in the expo’s five-year history, according to statistics from the organizing committee.
China is Africa’s largest trading partner and its fourth-biggest source of investment. Official data show that bilateral trade between China and Africa totaled 282 billion U.S. dollars in 2022.
“Free trade area could counteract Zim sanctions” (The Sunday Mail)
Unity, innovation and deepening intra-African trade has the potential to counteract the impact of Western sanctions on Zimbabwe, Ethiopia Civil Service Commission chairperson Dr Mekuria Haile has said.
“We no longer need to focus on the economic sanctions imposed on countries like Zimbabwe.
“Zimbabwe is doing great in food production, wheat and cattle. The import substitution on wheat is due to good interventions by the Government,” said Dr Haile.
“Once you are successful in increasing and improving agricultural productivity, and achieving food self-sufficiency, those issues from foreign influences can be managed.”
The continent, Dr Haile said, has immense potential to engage Western countries as equal partners. “We should focus on what benefits us, utilising our natural resources — water and good climate. We need to encourage young people to be in the public service, engaging in high-value production. “Once we reach that level of competitiveness, using our comparative advantages of land and other natural resources, they will negotiate with us,” he said.
Kagame urges sense of urgency in implementation of AfCFTA (The New Times)
President Paul Kagame has requested African leaders to move with a sense of urgency in the implementation of the African Continental Free Trade Area (AfCFTA) to boost economic value on the continent.
He was speaking during a televised conversation dubbed ‘Ask the President’ on the national broadcaster, on Tuesday, July 4, where he got to answer some of the national key concerns across different sectors.
With the operationalization to establish a unified market of 1.3 billion people and a GDP of around $3.4 trillion in 2021, the AfCFTA is poised to become the world’s largest free trade area with 55 member states. However, some of the important protocols of rules of origin have not yet taken shape while about 47 countries have ratified their instruments of AfCFTA agreement.
There was more good news for the successful implementation of the African Continental Free Trade Area (AfCFTA) agreement in December 2022, when a Memorandum of Understanding (MoU) was signed between the United States (US) Trade Representative and the AfCFTA Secretariat at the US-Africa Leaders’ Summit (Summit) in Washington DC. The MoU covers expanded engagement between the two regions and intends to “promote equitable, sustainable, and inclusive trade; boost competitiveness; and attract investment to the continent.”
It was also announced at the Summit that US intended to invest USD 55 billion in Africa over the next three years, and that USD 15 billion would be deployed in “two-way trade and investment commitments, deals, and partnerships that advance key priorities, including sustainable energy, health systems, agribusiness, digital connectivity, infrastructure, and finance.”
Trade between the two regions is steadily rising. At the Summit, the Biden Administration noted that since 2021, the US has assisted in closing more than 800 two-way trade and investment deals worth around USD 18 billion across 47 African countries. In addition, the value of private investment deals from the US into Africa since 2021 is valued at USD 8.6 billion. The US focus on increased engagement and continued, trade and investment in Africa has clearly already led to an increase in trade and investment opportunities in both regions.
Towards a UN Global Digital Compact: ECA to gather insights for an open, inclusive, and secure digital future (allAfrica.com)
As part of the efforts to ensure inclusive global digital development, a regional review meeting on Africa’s Contributions towards the Global Digital Compact will take place from 4-5 July 2023 in Cape Town, South Africa. Organized by the Economic Commission for Africa (ECA)’s Digital Centre of Excellence, the meeting aims to provide a platform to propose and review Africa’s contributions to the Global Digital Compact by bring together representatives from government institutions, policymakers, private sector entities, and civil society organizations.
The United Nations recognizes the immense potential of digital technologies in transforming societies worldwide while acknowledging the need for international cooperation to effectively harness their benefits and mitigate their risks.
The UN Secretary-General’s proposal to establish the Global Digital Compact outlines the principles of fostering an open, free, and secure digital environment. To lead the intergovernmental process on this Compact, Rwanda and Sweden have been appointed as Co-facilitators. As part of the consultative process, the UN seeks input from individuals, organizations, and entities worldwide, aiming to gather diverse perspectives and shape a comprehensive agreement.
This review meeting presents an opportunity for Africa to actively participate in shaping a more inclusive and equitable digital future. By collaborating with diverse stakeholders and incorporating African perspectives, the continent is expected to contribute significantly to the development of the UN Global Digital Compact.
Africa50 invests in infrastructure worth over $6.6 billion in six years (AfDB)
In just six years of operation, Africa50 has invested in critical infrastructure with a total value of more than $6.6 billion, African Development Bank Group President Dr. Akinwumi Adesina said on Monday during the Africa50 Infra Forum and General Shareholders Meeting in Togo’s capital Lomé.
Prominent African and global institutional investors attending the meeting signed subscription agreements and letters of intent to commit funds to the $500 million African Infrastructure Acceleration Fund—the first private vehicle infrastructure platform launched by Africa50.
President Gnassingbé said: “There is a huge need for infrastructure across the continent, and this is indeed a condition for development. Without roads, bridges, airports, hospitals, schools, power, communication networks, and water supply, there is indeed no possible development in Africa.”
Africa focuses on trade investment risks (The Nation Online)
African finance ministers, institutional investors, multilateral agencies, financiers, insurers and experts are expected to explore trade and investment risks in the continent and proffer ways to mitigate risks and stimulate the economy.
At an Investor Roundtable scheduled for Rwanda, public and private sectors experts will discuss Africa’s trade and investment risks under the theme: Re-thinking Risk. Enabling Finance. This is coming against the backdrop of the continent’s economic fallout stemming from the COVID-19 scourge, the negative consequences of Russia – Ukraine war, and climate change.
The roundtable is part of the annual general meeting of African Trade Insurance Agency (ATI) holding in Kigali, Rwanda, between Wednesday and Friday.
Chief Executive Officer, African Trade Insurance Agency (ATI), Manuel Moses, said several countries have emerged from the global headwinds with a huge debt load, putting them at a risk of debt distress.
Reforming the Global Debt Architecture (UNECA)
One in five people globally live in countries that are in debt distress or at risk of it. Two-thirds of low-income countries – most of them in Africa – fall into this category, while eight of the nine countries currently in debt distress are on the continent.
A confluence of factors has created this mounting debt crisis. With booming populations and massive infrastructure needs, coupled with the declining availability of official development assistance and concessional financing, African governments took advantage of historically low interest rates in the 2010s and borrowed heavily from international capital markets and China. Consequently, debt stocks more than doubled between 2010 and 2020.
In 2024, African countries will spend around $74 billion on debt service, up from $17 billion in 2010. Two states – Ghana and Zambia – have already defaulted, while Chad and Ethiopia are in restructuring talks.
Efforts to remedy this situation have been made more challenging by the increased complexity of the creditor landscape. The G20’s Debt Service Suspension Initiative (DSSI), which paused debt payments for eligible countries between May 2020 and December 2021, provided some temporary relief. The G20 Common Framework for Debt Treatments, a process through which low-income countries can request debt restructuring, was then established in November 2020 to complement the DSSI. While Chad, Zambia, and Ethiopia requested relief under the Common Framework in early 2021, Ethiopia still has not had its debt restructured. Chad concluded a tentative arrangement at the end of 2022, and Zambia reached a debt restructuring deal only last month. Given these delays, the Common Framework has not lived up to expectations. As one policymaker put it, “It is neither common nor a framework.”
DBSA celebrates 40 years of development impact, regional integration (Engineering News)
Development finance institution (DFI) the Development Bank of Southern Africa is celebrating 40 years of delivering progress through critical infrastructure that transforms livelihoods, while sustaining and growing emerging economies.
“Over the years, the bank has extended its presence in the infrastructure value chain, building its capability to not only prepare and finance projects, but to also deliver them. From 2002 to 2022, the DBSA, through its infrastructure build process, has built and refurbished 726 schools, completed 404 health facilities and 456 social houses.
Currently, the DBSA is working on an infrastructure project pipeline worth more than R155-billion across its various divisions. “We recognise the changing dynamics and emerging challenges facing Africa. We are committed to embracing innovation and technology to drive digital transformation, enhance project delivery, and improve the efficiency of our operations.
“Additionally, sustainability will remain at the core of our investments, ensuring that our projects contribute to a greener, more inclusive future,” DBSA CEO Boitumelo Mosako highlighted.
UN Regional Commissions’ webinar on measuring illicit financial flows, 27 June 2023 (UNECA)
More than 100 participants from across the globe met virtually today to share their experiences in measuring and Curbing Illicit Financial Flows (IFFs). Africa, being at the fore front of the efforts of curbing IFFs building from the legacy of the AU-ECA High Level Panel on IFFs, was well represented in the webinar
The United Nations has set aside funds to support the estimation of IFFs and to advance appropriate policies to be put in place by governments to deal with these flows under a new Development Account project (DA 15) “Measuring and Curbing Illicit Financial Flows”. Key deliverables of this project are the production of estimates of illicit financial flows and evidence- based policy responses to effectively curb them. This project will be implemented by regional commissions and the IFFs measurement custodian agencies, UNCTAD and UNODC.
The African Union Commission on International Law (AUCIL) has been tasked with preparing a draft AU statement on the application of international law in cyberspace, vide Communiqué PSC/PR/COMM.1120.1 (2022) adopted by the Peace and Security Council of the African Union (PSC) on 9 November 2022.
The African Union (AU) recognizes the ever-changing nature of the digital realm and its impact on peace, security, and development. As a result, the AU emphasizes the need for Africa to actively participate in the process of defining the rules of international law in order increase Africa’s voice, influence in shaping global norms and frameworks governing cyberspace and safeguard its interests.
The AU Member States have initiated a cooperative endeavor to formulate a Common African Position (CAP) on the topic at hand. In this regard, the CAP is still going through consultations among Member States and experts and will be at a later stage considered by the PSC and the AU Policy Organs. This noteworthy accomplishment will serve as a testament to Africa’s commitment to addressing the difficulties and possibilities presented by cyberspace, as well as its dedication to upholding international law in this quickly evolving domain.
53rd SADC PLENARY ASSEMBLY SESSION: Samia roots for food security (Tanzania Daily News)
President Samia Suluhu Hassan on Monday offered the Southern African Development Community (SADC) member states tips of becoming food secure.
Dr Samia, who speaking shortly before opening the 53rd Plenary Assembly Session of the SADC Parliamentary Forum further underscored the importance of African Continental Free Trade Area (AfCFTA), blue economy and conservation agriculture with a view of building resilience and making the regional economic bloc food secure.
“We have come up with a raft of measures, yet we fall short of implementing them, it is high time we get back to the drawing board and put them to good use for food production,” urged the president.
FAO Director-General calls for seizing opportunities to transform agrifood systems (FAO)
In his speech to the Conference, QU Dongyu highlighted that global agrifood systems are continuously facing shocks from different dimensions, and emphasized that FAO and its Members should not only focus on the challenges, but also “find opportunities and take action to move forward.”
Transformative actions and robust solutions are needed “so we can move forward into a world of better production, better nutrition, a better environment, and a better life, leaving no one behind,” the Director-General said, citing the Four Betters that he has embedded in various reforms, initiatives and programmes implemented since first taking FAO’s helm in 2019.
Report shows many G20 export restrictions remain in place, including on food and fertilizers (WTO)
“The trade disruptions caused by the shocks of the past three years have pushed economic security to the forefront of policy discussions. Yet what we have seen over this period is that open global trade, anchored in the multilateral trading system, is a powerful force for economic security, enabling WTO members to better produce and access food, medical supplies, and other essentials,” said WTO Director-General Dr Ngozi Okonjo-Iweala.
“It is welcome that G20 economies have been taking more steps to facilitate imports, underscoring how trade is a tool to push back against inflationary pressures. I call on them to show leadership by continuing to reduce the number and trade coverage of export restrictions, particularly on food, feed and fertilizers, to help dampen the price volatility that makes life harder for people around the world.”
New report looks into boosting developing countries’ participation in services trade (WTO)
In her opening remarks, DG Okonjo-Iweala said: “The future of trade is services, digital and green — and it must be inclusive. This new publication translates that conviction into a call for action. It documents how services trade has become a key ingredient in our members’ growth and development strategies … including by helping countries diversify and expand their export baskets, making them more resilient to external shocks.”
While heavily affected by the COVID-19 pandemic, services trade remains the most dynamic component of world trade. Digitally delivered services have grown at the fastest pace, well ahead of the growth of trade in goods. Services also generate more than two-thirds of GDP globally and represent 50 per cent of the world’s workforce in 2021. In value added terms, services account for 50 per cent of world trade.
The publication — entitled “Trade in Services for Development” — looks at how developing economies can fully share in the benefits that services trade brings to their economies and step up their development prospects.
World Economic Situation and Prospects: June 2023 Briefing, No. 172 (UN)
While economic prospects remain subdued, the global growth slowdown in 2023 will likely be less severe than previously anticipated, mainly due to improved household spending in the United States and the European Union, the recovery in China, and no reversals to the earlier forecast for India. Global growth is now projected to slow from 3.1 per cent in 2022 to 2.3 per cent in 2023 (up from 1.9 per cent forecast in January)
The slightly improved global growth outlook for 2023 primarily reflects upward revisions in the major developed countries and China
Global trade is expected to remain under pressure in the forecast period. The baseline scenario projects that the volume of global trade in goods and services will grow by 2.3 per cent in 2023, slightly higher than the previous forecast of near zero growth. This upward revision reflects improved GDP growth projections for the world’s largest economies. However, the lingering effects of COVID-19, rising geopolitical tensions, and monetary tightening will continue to hold back global trade, although supply chain constraints and high shipping costs have eased. Trade in services experienced faster growth than trade in goods, supported by further recovery in travel and tourism sectors. International tourism is set to consolidate its recovery in 2023, backed by pent-up demand, particularly from Asia and the Pacific as destinations and markets open up. The World Tourism Organization (UNWTO) estimates that international tourism arrivals could reach 80 to 95 per cent of pre-pandemic levels in 2023.
Leaders Call for Innovation, Entrepreneurship and Global Cooperation to Revitalize Growth (World Economic Forum)
More than 1,500 leaders from around the world came together at this important juncture for the global economy to signal their shared interests in advancing dialogue, innovation and collaboration to revitalize growth.
The world faces low growth, high costs of living, increasing geopolitical fragmentation, widening inequality and the growing effects of the climate and nature crises, as well as the continuing repercussions of the pandemic on industry, society and trust. These converging crises have created heightened levels of uncertainty and raised questions about how to build an economy that works for all. Leaders called for a new approach to “re-globalization” and urgency in reviving cooperation for shared challenges.
“This is the big opportunity to look at those areas, those regions, those countries that were left out of the first wave of globalization,” said Ngozi Okonjo-Iweala, Director-General, World Trade Organization. “Let us look at those areas that are friendly to investment and see if we cannot decentralize and diversify supply chains so that we bring these areas into world trade … to spur global growth.”
Emerging technologies, entrepreneurship and innovation offer hope to overcome threats, drive economic growth and raise living standards.
6 ways to boost consumer trust in online platforms (UNCTAD)
UNCTAD estimated in April 2022 that 60% of internet users shopped online following the start of COVID-19, compared to 53% in 2019. Top consumer-focused e-commerce platforms increased their sales value by 63% from 2019 to 2021. But consumer trust in the digital market remains fragile. A joint survey by UNCTAD and its partners found prevalent user distrust of the internet. Digital platforms have increasingly contributed to the distrust, pushing some consumers to reduce online purchases, financial transactions and social media use.
”Online platforms have become central to online consumption. However, consumers are concerned about false or incomplete information and misleading advertising, unsafe online products, data protection and inadequate dispute resolution,” said Teresa Moreira, head of competition and consumer policies at UNCTAD.
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Decarbonisation gives rise to new opportunities (SAnews)
President Cyril Ramaphosa says it is critical that South Africa remains on par with other countries that have taken steps to incentivise manufacturers to invest in the production of electric vehicles in the country. This after global auto manufacturer BMW announced that it will be investing some R4.2 billion to equip its Rosslyn Plant in Tshwane to build the next generation BMW X3 hybrid plug in vehicle. This will be the first locally produced electric vehicle to be produced on South African soil.
President Ramaphosa emphasised that government, civil society, business and labour must work together to ramp up production of these vehicles to secure the future of the auto manufacturing in the country in the face of decarbonisation. “Among other things, this means that auto manufacturers need to be supported to expand their investment in the production of new energy vehicles in South Africa. We currently have a range of measures to support automotive manufacturers, such as the Special Economic Zone incentives, the Automotive Investment Scheme and others.
“We will soon be finalising a strategy to support the transition to electric vehicle manufacturing that is affordable and effective. It is key that South Africa keeps up with other countries, including on the continent, that are incentivising the manufacture and uptake of electric vehicles as the world moves towards decarbonisation,” the President said on Monday in his weekly newsletter.
Africa gains ground in South Africa’s apparel imports, APAC share dips (Fibre2Fashion)
For the first time in the last five years, the Asia-Pacific (APAC) region’s share of South Africa’s apparel imports has fallen below 70 per cent. Remarkably, Africa’s share crossed the 25 per cent threshold in the trade during the first four months of this year.
Despite the fact that the Africa region is emerging as a global textile hub, South Africa still relies heavily on the Asia-Pacific region, specifically China, for its imports. Between January and April 2023, South Africa imported apparel worth $595.730 million. Of the total inbound shipment, the Asia-Pacific region accounted for 68.67 per cent, or $409.074 million. This is the first time in five years that the Asia-Pacific region’s share has dipped below 70 per cent. Meanwhile, the Africa region’s share rose to 25.89 per cent, breaching the quarter mark for the first time, with imports valued at $154.238 million
African countries’ efforts to tap into South Africa’s apparel imports have progressed slowly. The continent managed to increase its share by less than four percentage points over the last five years. In the period of January-April 2019, South Africa’s apparel imports were valued at $616.405 million, with the Asia-Pacific region accounting for 73.95 per cent and Africa for 21.70 per cent.
Over the course of 2022, South Africa imported apparel worth $1,838.027 million. The Asia-Pacific region’s supply was valued at $1,229.300 million (66.88 per cent) and Africa’s at $517.242 million (28.14 per cent) of the total trade. Consequently, Africa’s share has already surpassed a quarter in the full year trade.
Tanzanian farmers bear the brunt of maize export restrictions as prices drop (The East African)
Tanzania’s restrictions on cereal exports to Kenya and Uganda have seen prices of maize dip in the country, prompting farmers to petition their Members of Parliament to press the government to liberalise the trade. Low prices have been recorded in most growing areas in the southern highlands.
Tanzania is the major exporter of maize and rice to Kenya and other East and countries, including eastern DR Congo, Burundi and South Sudan.
According to the new guidelines, exporters are required to open and register a local office in Dar es Salaam, which will deal with their exports, and obtaining export licences, which farmers say has introduced barriers to trade and impacted prices.
“The government needs to allow price competition in the market, as farmers are getting little from their efforts despite incurring huge expenses in production,” Deus Sangu, MP for Kwela in Rukwa region, said.
Togo: Parliament Allows Government to Ratify Cooperation Agreement on ECO currency (Togo First)
The Togolese Assembly allowed the government to ratify the cooperation agreement between the West African Monetary Union (UMOA) member states, countries that share the CFA franc, and France. The Assembly unanimously approved the move last Thursday, June 29, during its sixth ordinary plenary session of the year. Sani Yaya, Togo’s Minister of Economy and Finance, was present.
The new monetary cooperation agreement was signed on December 21, 2019, in Abidjan, Côte d’Ivoire. It is a “significant revision” of the agreement in effect since December 4, 1973, according to the Assembly.
The updated version, indeed, prepares the Union’s states for the introduction of the ECO and ”promotes Togo’s growth and attractiveness.” By ratifying the document, Togo tells other WAMU States that it has completed the internal procedure necessary for the agreement to come into effect.
Both for Togo, and the region concerned, the recent announcement is one of the latest developments in a process that started in 2019, following many debates about the future of the CFA franc, which some people view as a colonial relic that should be replaced.
Ethiopia’s ambassador upbeat about ties with Uganda, urges further trade cooperation (Nile Post)
Ethiopia’s Ambassador to Uganda, Etsegenet Bezabih Yimenu has hailed the ‘ever-growing’ bilateral ties between the two countries.
Yimenu says the trade relations between Uganda and Ethiopia are improving but points out that there is still a “job to be done” for the two countries to reach their trade volume potential.
Yimenu highlighted that whereas Uganda and Ethiopia have geographical location and economic zone to their advantage, the two countries have not done enough to promote trade between them,
something she says her Mission is keenly interested in addressing.
“We haven’t done much to promote trade between our two countries. In the next years, we need to first of all promote business between us. It can be through connecting institutions,” Yimenu said.
China pledges to strengthen trade ties with EAC (Tanzania Daily News)
CHINA has pledged to strengthen cooperation with the East African Community (EAC) in capacity building, trade, infrastructure development and other fields. The Chinese Ambassador to Tanzania and the EAC, Chen Mingjian, said at the EAC Headquarters here last week that China as the world’s largest developing country was highly optimistic about promoting economic growth not just in the EAC but on the entire African continent.
“China highly appreciates the significant contribution made by EAC in maintaining regional peace and stability, improving regional infrastructure, jointly fighting against the Covid-19, promoting regional economic integration and economic recovery of countries in the region,” said Ambassador Mingjian when she handed over eight vehicles – three buses and five double cabin pick-ups – to the EAC.
Breaking down borders: How single currency policies can empower African family businesses (Billionaires.Africa)
Kenyan President William Ruto, in early June 2023, called for the introduction of a single African currency to ease trade on the continent during the 22nd Common Market for Eastern and Southern Africa (COMESA) Heads of State and Government Summit in Lusaka, Zambia. Ruto emphasized that regional integration would be enhanced if citizens did not have to worry about which currency to use for trade. Malawi’s President Lazarus Chakwera also stressed the urgency of achieving regional integration and highlighted the enormous potential for intra-COMESA trade.
Meanwhile, COMESA Chairman Abdel Fattah al-Sisi urged member states to collaborate in building infrastructure that would facilitate the movement of goods and people in the region, promoting integration. These developments are crucial for African family businesses, which stand to benefit significantly from single currency policies that break down borders and enable cross-border trade.
A single currency policy focused primarily on trade can help family businesses doing business in Africa in a number of ways, even if it is restricted to trade.
A single currency policy can help promote greater regional integration, which can lead to increased collaboration and innovation among family businesses in Africa. This can help create new opportunities for growth and expansion and help family businesses to remain competitive in an increasingly globalized economy.
Energy sector seeks financing solutions tailored to Africa’s needs (The East African)
Players in Africa’s energy sector are asking private investors and development finance institutions to tailor their financing solutions to the continent’s needs to help in the provision of affordable electricity to low-income households. Speaking at the 25th edition of the Africa Energy Forum, Uganda’s Minister for Energy and Mineral Development Ruth Nankabirwa pushed for loans with a repayment holiday of up to 30 years.
“With the pressure to repay the loans within a short period of time reduced, energy producers will be able to supply power to the end user at an affordable rate, ensuring more Africans are connected to the power grid,” she said. “When the cost of capital or the pressure to pay back is high, then the power tariffs will also be high.
She said that though Africa is home to abundant natural resources, funding barriers have for a long time affected the production and transmission of electricity in the continent, with more than 600 million Africans not having access to clean energy.
Compared with other parts of the continent such as Central Africa, the situation is not as dire in East and Southern Africa. However, challenges of reliability and regular power shortages continue to persist, with electricity prices remaining high.
EAC legislators want regional air travel localised to cut costs (The Citizen)
Questions abound as to whether the East African Community (EAC) countries will unanimously agree to domesticate their air travel. An advice by the regional MPs to convert EAC air transport charges from international to domestic category is not likely to get an easy nod from governments. The lawmakers believe the mechanism would significantly lower passenger airfares, lower tariffs on aircraft and cargo movements.
“In the spirit of Common Market, the air traffic movements within the EAC region should be converted from international to domestic category,” EALA members maintain in their oversight report on the aviation industry within EA. Members of the East African Legislative Assembly (Eala) maintained that the high cost of air travel was still a drawback in the EAC. These include taxes paid by passengers on international departure in airports within the region such as passenger service charges and security and safety fees.
Ethiopia Applies To Join BRICS (Silk Road Briefing)
Ethiopia has made an official application to join the BRICS grouping and hopes for a positive decision on its application to join the BRICS member states, Ethiopian Foreign Ministry Spokesman Meles Alem has stated, saying “We expect BRICS will give us a positive response to the request we have made.”
Ethiopia has one of the fastest-growing economies in the world and is Africa’s second most populous country.
Other recent requests to join BRICS has been filed by Algeria, Argentina, Bangladesh, Indonesia, Iran, Saudi Arabia, Turkiye and the UAE, while Egypt has recently joined. The BRICS already unites Brazil, Russia, India, China, and South Africa.
EU reaffirms support for G20 seat for African counterpart (News24)
Most major world powers, in principle, has agreed to support Africa’s bid to join the G20, a forum comprising 19 countries and the European Union (EU).The latest to show support was the EU on Friday.
A statement issued at one of the EU Council body of advisors meetings, underway until 16 July, reads “in line with commitments on multilateralism made at the EU-AU Summit … the European Council supports the African Union’s [AU] reinforced presence in international forums, notably in the G20”.
The US also supported the move to include the AU in the G20 during the US-Africa Leaders Summit in December last year. “Africa belongs to the table in every room - in every room - where global challenges are being discussed and in every institution where discussions are taking place,” US President Joe Biden said.”It’s been a long time in coming, but it’s going to come.”
Global shipping poised to get new emissions-fighting strategy (UN News)
“Humanity is in dangerous waters on climate,” UN Secretary-General António Guterres said in a video message at the start of MPEC’s latest session. “Science tells us it is still possible to limit global temperature rise to 1.5 °C, but it requires an immense and immediate global effort, and shipping, which accounts for almost three per cent of global emissions, will be vital.”
Gathering from 3 to 7 July to review ongoing efforts, the Committee is expected to adopt a greenhouse gas emissions strategy in response to climate change and threats to biodiversity, following meetings with IMO.
The revised strategy is expected to set out the way forward for possible technical and economic measures to be further developed by IMO.
Scaling Up Private Finance for Clean Energy in Emerging and Developing Economies (IFC)
Annual clean energy investments in emerging and developing economies will need to more than triple from $770 billion in 2022 to as much as $2.8 trillion by the early 2030s to meet rising energy needs and align with the climate goals set out in the Paris Agreement.
According to the report prepared by the International Energy Agency (IEA) and the International Finance Corporation (IFC), public investments alone would be insufficient to deliver universal access to energy and tackle climate change and can be used most effectively for blended finance. In turn, two-thirds of the finance for clean energy projects in emerging and developing economies (outside China) will need to come from the private sector, rising from today’s $135 billion to as much as $1.1 trillion a year within the next decade.
Lifting barriers will help emerging and developing economies benefit more fully from the opportunities of the new global energy economy and expand opportunities for private investors.
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Summit to share practical advice to start and grow road freight SMEs (Engineering News)
Industry body the Road Freight Association and industry collaboration platform the Transport Forum of South Africa have announced that the first small and medium-sized enterprise (SME) Road Freight Summit will be held on October 24 and 25.
The summit will provide practical advice and see industry experts, regulators and academics share best practices with road freight entrepreneurs and SMEs to assist in building and growing their businesses. The summit's theme is resilience and sustainability, business consultancy RSH founder and MD, and summit convenor Florence Musundwa said in a June 30 webinar.
Logistics and transport consultancy Gecko Group economist Sheina Gokool reminded attendees of the central role SMEs play in providing employment, highlighting that SMEs employ more than 80% of the population of sub-Saharan Africa and that they will be central to growth and creating more jobs.
She also highlighted that digitalisation is helping SMEs to scale-up much faster and leading to more startups. Technology-driven advancements and plug-and-play design are at the forefront of the agenda, she said.
EAC still tight-lipped on Kenya’s trade deal with European Union (The Citizen)
The East African Community (EAC) has maintained silence on a recent trade deal by Kenya and the European Union. Officials of the Secretariat could not comment on the agreement inked this week in Nairobi and witnessed by President William Ruto. The deal means Kenya has bypassed the fellow EAC member states in implementing the stalled Economic Partnership Agreement (EPA) between the two sides.
An agreement on the same reached by the EAC and the EU in 2014 after years of negotiations was subject to approval by all countries. It later stalled as other EAC member states declined to endorse it even as Kenya – then the only middle income country – signed and ratified it.
During the inking of the agreement on Monday, Kenya said that it was not bypassing its fellow member states in the bloc this time around.
A Tanzanian scholar based in the US, Prof Richard Mshomba, said the “go-it-alone” measure taken by Kenya was enough sign of the existing cracks in the EAC. “It has revealed, very clearly, that the EAC is not a genuine customs union,” he said, noting that Kenya has also reached a bilateral EPA agreement with the UK. “These bilateral arrangements would not be possible in a real customs union,” said the economics don teaching at La Salle University in the US.
A wealth of opportunities unveiled in Tanzania’s mining sector (African Mining Market)
About a month ago, the Tanzania government signed contracts worth approximately $1 billion (USD$667 million) with three Australian companies to mine graphite and rare earths. The deal, which was signed with Evolution Energy Minerals, Ecograf and Peak Rare Earths, constitute a part of Tanzania’s endeavours to progress negotiations on mining and energy projects that have experienced significant delays.
On her visit to Tanzania, Vice President Kamala Harris, announced plans to enhance trade and investment with Tanzania, with the goal of strengthening connections with a continent where China and Russia exert growing influence.
The strengthening of ties with Australia, as well as efforts to enhance trade and investment with the United States, showcases Tanzania’s commitment to attracting global investors and expanding economic opportunities.
Supported by abundant resources, adherence to international mining standards, and participation in regional trade agreements, Tanzania is well-positioned to achieve its aspirations and foster sustainable growth in the mining sector.
Nigeria’s Intra-African Trade Drops by 12% to N842.6bn in Q1 (Economic Confidential)
Nigeria’s intra-African trade has continued to underperform expectations despite the commencement of the African Continental Free Trade Area (AfCFTA) as the trade value fell Year-on-Year (YoY) to N842.6 billion in the first quarter of 2023 (Q1’23) 11.95 percent down from N956.93 billion in Q1’22.
However, more than three years after the AfCFTA kick-off, Nigeria’s trade value with other African countries in relation to its total foreign trade remain low.
The National Bureau of Statistics (NBS) report on the Foreign Trade in Goods Statistics for Q1’23, showed that at N842.6 billion, Nigeria intra-African trade represented just 6.99 percent of its total foreign trade (N12.047 trillion) in Q1’23. This is against the 7.4 percent contribution to its total foreign trade (N13.001trillion) in Q1’22.
On a Quarter-on-Quarter basis, Nigeria’s trade value with other African countries also declined by 24.87 percent to N842.6 billion in Q1’23 from N1.122 trillion in Q4’22.
Ethiopia applies to join BRICS bloc of emerging economies (The East African)
Ethiopia has made an official request to join the BRICS bloc of emerging economies, the Ministry of Foreign Affairs said.
“We have applied for membership and we expect BRICS to give us a positive response to the request we have made,” Foreign ministry’s spokesperson Meles Alem said on Thursday. He added that Ethiopia would continue to work with international institutions that can protect its interests.
“As a country that has been a founding member of global institutions like the AU and the UN, and as we seek to guarantee our national interests, it is important to join blocs like BRICS,” he said. Ethiopia, with the second highest population in Africa, is one of the continent’s fastest-growing economies, according to the International Monetary Fund.
Ramaphosa calls on customs union to improve integration, trade ties (IOL)
President Cyril Ramaphosa has called for the five member states of Southern Africa Customs Union (Sacu) to discuss the diversification of their economies to increase intra-Africa trade and deepen integration.
Speaking at a Sacu summit in Swaziland yesterday, Ramaphosa said the states were positioned to use their collective revenues to support industrial capacity and infrastructure development within the union.
“We cannot be content that Africa’s share in global trade is a mere 3%. This customs union should contribute to substantially increasing the African trade in goods and services.
“We will achieve this if we have clearly articulated programmes, sufficient resources, a robust governance framework and a commitment to executing the strategic plan,” he said.
pdf Communiqué of the 8th Summit of the SACU Heads of State or Government - 29 June 2023 (165 KB)
TIACA Regional Event Africa highlights African air cargo market potential, challenges (Africa Aviation News)
The International Air Cargo Association (TIACA) recently concluded its third regional event, the TIACA Event Africa which was held on June 19-21st with delegates declaring the event was successful in its aim to bring the local air cargo community and international delegates together to discuss the intricacies of doing business to/from and within Africa. The event was held in Nairobi and was hosted by Kenya Airports Authority.
TIACAs first regional event in Africa, held in Nairobi, brought together 200 delegates from across the industry to discuss issues that affect the African air cargo market and gave insight into how to do business within Africa.
“We were pleased to have such great support from the Kenyan government, African Airlines Association (AFRAA), our host Kenyan Airports Authority and our many sponsors, as well as the membership, the industry, and its leaders. The event’s success is vital to uniting the air cargo industry by bringing the international community together to discuss, debate, and network in regions throughout the world,” Steven Polmans, Chair, TIACA said.
African banking groups embrace PAPSS (IT-Online)
PAPSS, the Pan-African Payment and Settlement System, has announced the signing of Memorandums of Understanding (MOUs) with five African multinational commercial banking groups: Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group.
These significant partnerships aim to revolutionise the settlement of cross-border transactions across Africa, leveraging on the vast network of subsidiaries and representative offices across major economic centres across Africa.
The signature of these MOUs signifies a big step forward in the pursuit of seamless cross-border trade payments throughout the almost 40 countries covered by the banks. The broad collaboration between PAPSS and African commercial banks will pave the way for enhanced efficiency, transparency, and reliability in intra-African settlement.
African companies told to expand intra-regional trade in manufactured goods (Ghana Business News)
Dr Nkosazana Dlamini-Zuma, a former Commissioner of the African Union Commission, has charged businesses in Africa to grow intra-continental trade in finished goods.
“We need to trade in our own goods… so that in 50 years [when Agenda 2063 is due], we will be able to celebrate free trade and say, I can drive from Cape Town to Cairo and from Djibouti to Senegal.”
Dr Dlamini-Zuma was speaking at a ceremony held by the Secretariat of the (AfCFTA) in Accra in her honour to championing the AU Agenda 2063 and gender equality.
“Trade is not about raw materials; our colonisers did that and they continue to want to buy raw materials from us. That’s ill, and should stop. It’s something we must work at and fast,” she said. “Ninety per cent of our goods are transported across the Mediterranean. Who is in control of these processes?” she quizzed, adding that “this is something we must look at.”
“When we export raw materials, by the time it’s turned into a finished good, it’s probably 10 times or more expensive than the raw materials, and sometimes when they come back, most of us can’t afford them,” Dlamini-Zuma said.
She, therefore, urged businesses to shore up efforts to change such a situation, while encouraging governments on the continent to create the enabling environment for the success of AfCFTA.
Transforming Africa’s Food Systems: the challenges and opportunities (Africa Renewal)
The role of special envoys of the AU is primarily to tackle a critical issue for which the AU needs support. This is the first time the AU is designating a Special Envoy specifically dedicated to food systems.
We could enter a post-Ukraine war era that will be characterised by a crisis in food systems. Leaders must not only establish the food systems but should also ensure their effectiveness in achieving desired outcomes The market has witnessed an unfavourable evolution, and African countries are suffering the consequences of that war. We have observed shortages of vital resources such as fertilisers, seeds, wheat, etc. The crisis and our response to it have revealed a lack of co-ordinated efforts.
The first reason for appointing a Special Envoy is to ensure preparedness for such a crisis, even as we anticipate more crises in the future. The second reason relates to the many initiatives addressing food systems issues in Africa. We have some complexity in terms of initiatives, and this complexity necessitates better management and coherence. Without proper co-ordination, Member States and their stakeholders may struggle to comprehend the direction we are heading in. The third reason, closely linked to the previous two, pertains to resource mobilisation.
US DFC to lead delegation to US-Africa Business Summit (Engineering News)
US International Development Finance Corporation (DFC) CEO Scott Nathan will lead a high-level US delegation to the US-Africa Business Summit, to be held in Gaborone, Botswana, from July 11 to 14.
The event is hosted by the Corporate Council on Africa and the government of Botswana and is indicated to build on the momentum of the successful 2022 US-Africa Leaders Summit.
To mark the six-month milestone after the conclusion of the summit held in December 2022, the delegation will draw attention to how the US is delivering on high-profile government and private sector commitments, including the Digital Transformation with Africa (DTA), a signature initiative of the Biden-Harris administration.
Japan underscores Africa trade ambitions with stake in ATI (Global Trade Review)
Nippon Export and Investment Insurance (Nexi), the Japanese export credit agency (ECA), has made a US$14.8mn equity investment into the African Trade Insurance Agency (ATI), as the Asian country aims to strengthen its presence in the continent.
ATI is a pan-African institution that provides political risk insurance to companies, investors and lenders interested in doing business in the region. Among its shareholders are 21 member countries, and institutional backers including global insurer Chubb, India’s Export Credit Guarantee Corporation and UK Export Finance. With the investment, Nexi becomes the multilateral credit insurer’s 13th institutional shareholder.
ATI says it now expects to support “many more” Japanese manufacturers, traders, exporters and financial institutions seeking market access across Africa in the coming years.
“We are confident that as Japan expands its FDI and footprint into Africa, its membership in ATI will not only improve our institution’s capacity to support trade and investment across the continent, but will also attract more Japanese investment seeking business opportunities in Africa’s 1.2 billion-strong single market under the African Continental Free Trade Area,” says ATI chief executive Manuel Moses.
Ahead of the 43rd session of its biennial Ministerial Conference (1 – 7 July), the Food and Agriculture Organization of the United Nations (FAO) today hosted a High-Level Ministerial Event called Transforming agrifood systems to increase resilience and achieve the 2030 Agenda - Harnessing the potential of Small Island Developing States, Least Developed Countries and Landlocked Developing Countries.
The meeting proposed the establishment of a Ministerial network for Small Island Developing States, Least Developed Countries and Landlocked Developing Countries (SIDS, LDCs and LLDCs) with technical support from FAO. This would share experiences, knowledge and collectively build resilience to climate change and disasters, resilience to food insecurity, the Blue Transformation roadmap and secure investments and access to finance in order to scale-up transformation of agrifood systems – especially in the face of the impacts of the climate crisis.
The FAO Director-General made it clear that FAO is ready to further strengthen its support to SIDS, LDCs and LLDCs. To address the climate crisis, for example, Qu stressed the need to “prioritize climate-resilient agricultural practices,” which includes using resilient crop varieties; increasing productivity while reducing greenhouse gas emissions; implementing sustainable and adapted soil, water and land management systems; and developing science-based tools for evidence based decision-making.
Members conclude tariff quota review, discuss food security, farm policies, transparency (WTO)
Participants also took the opportunity to seek further information on individual notifications submitted by members concerning tariff quota administration, special agricultural safeguards, domestic support and export subsidy notifications as well as notifications in the context of the NFIDC Decision . Members heard updated analyses on food markets and the prospect for global food security from the World Food Programme (WFP, G/AG/GEN/221 ), the UN Food and Agriculture Organization(FAO), the International Monetary Fund(IMF) and the World Bank Group.
UN agencies head up new $115 million push for cleaner, healthier oceans (UN News)
FAO will co-lead the Clean and Healthy Oceans initiative together with the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD) and the Development Bank of Latin America (CAF), in a strategic partnership with the Intergovernmental Oceanographic Commission of the UN educational, science and cultural agency UNESCO.
“Together, we can turn the tide on pollution for better production, better nutrition, a better environment, and a better life,” said FAO Director-General, QU Dongyu.
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Inadequate and ageing infrastructure remains a significant obstacle towards Africa achieving its full economic growth potential. According to the Infrastructure Consortium of Africa (ICA), poor road, rail and harbour infrastructure adds 30-40 percent to the costs of goods, which is borne by consumers and is a significant factor in the inflation-driven cost of living crisis. For South Africa, there are particularly acute challenges in this regard. A recent study by the World Bank showed the poor state of infrastructure reduced national economic growth by two percentage points every year and cut business productivity by as much as 40 percent.
Once hailed as the gateway to the rest of Africa, South Africa’s port infrastructure is in dire straits, with inefficiencies due to ageing infrastructure, poorly maintained equipment, and a misallocation of human resources. The country’s ability to supply essential goods to the rest of Africa has suffered and a significant turnaround needs to restore its reputation, as the country has lost competitive ground against other rapidly emerging African markets, such as Maputo, Dar es Salaam, and Walvis Bay.
DUCAT is however optimistic about the opportunities presented in the logistics sector in South Africa. The group is committed to supporting the South African industrial value chain by applying targeted capital investments of up to R300 million in physical dry bulk and cross-dock infrastructure with technical know-how to existing underutilised assets. By doing so, it aims to deliver immediate practical solutions to its customer base.
“Trade flows rely on logistics arteries, and we are committed to developing new capacity while also repurposing and upgrading existing capacity in the dry, wet, and dirty goods sector. Last year, DUCAT successfully acquired Senzomix, a warehousing operator based within the Port of Cape Town. This strategic acquisition allowed the company to establish a physical footprint in Southern Africa and strengthen its position in the warehousing and bulk logistics industry,” says Rory Clark, Managing Director of DUCAT Senzomix.
Potential Agoa expulsion would add to South Africa’s growing chicken price problems (Engineering News)
Food importer Hume International logistics and operations director Roy Thomas stresses that the looming threat of South Africa‘s expulsion from the African Growth and Opportunity Act (Agoa) trade agreement with the US threatens to push the industry over the edge, risking meteoric rises in local chicken prices.
This comes in addition to the fact that South Africa‘s chicken supply and its crucial import industry are already in a tenuous position as a result of the global bird flu outbreak.
But US lawmakers’ recent request to move the upcoming Agoa Summit out of South Africa hints at the country potentially being excluded from the Agoa agreement before it reaches its next renewal date in 2025. This is an event which could prove catastrophic, warn experts.
Govt developing critical minerals strategy to support green industrialisation – Mantashe (Engineering News)
Mineral Resources and Energy Minister Gwede Mantashe reports that government is in the process of developing a critical minerals strategy for South Africa, which will seek to support green-economy value chains domestically and abroad.
Speaking at the Northern Cape Mining and Energy Investment Conference, Mantashe reported that government was monitoring global developments around critical minerals, which he termed a “new theatre of global economic struggle” to ensure that the strategy supported South Africa‘s industrialisation aspirations.
“It is no secret that our country is well endowed with these critical minerals and can use them not only for beneficiation but also to position our country to be a strategic partner,” Mantashe said.
Minister Naledi Pandor: Eleventh Meeting of the South Africa-Germany Bi-National Commission (South African Government)
Our relationship with Germany is one of the most important and most strategic that we have with any country and our Bi-National Commission one of the most substantive that we have. It is not difficult to see why that is so. South Africa is Germany’s largest trading partner in Africa. At the same time, Germany is the third largest export market for South African products, most of which are value-added. The German economy is export-focused and yet we have a healthy trade surplus. Your country is a major investor in South Africa and an important development partner.
Mozambique: African Development Bank adopts new Country Strategy Paper covering 2023-2028 (AfDB)
The Board of Directors of the African Development Bank Group has endorsed the Bank’s 2023-2028 Country Strategy Paper for Mozambique on 13 June 2023. The new strategy aims to promote the country’s structural transformation by improving fiscal stability, creating decent jobs and generating inclusive growth. The strategy has two priority areas: fostering improved economic governance and the business environment to facilitate private sector investment and mobilize resources and transforming agricultural value chains by strengthening infrastructure sustainably.
This strategy is the culmination of efforts by the government, development partners, civil society, the private sector and technical experts on the country’s most critical economic reforms to implement in the coming years.
Implementation of the strategy is expected to lead to (i) greater private sector involvement to boost international trade; (ii) improved investment flows, and (iii) job creation—especially for women and young people. This is expected to have a knock-on effect of raising foreign direct investment to 30% of GDP from 22.7%.
With support from the Bank, Mozambique will stimulate the green economy and transform agriculture to increase the number of competitive industries capable of creating jobs and reducing poverty and inequality. The Bank’s engagement will also help improve livelihoods through investments in the agricultural sector based on a holistic, cross-sectoral approach and the development and modernization of Mozambique’s energy system.
The 2023-2028 Country Strategy Paper for Mozambique envisages establishment of a productive special agro-industrial processing zone by 2028 through the creation of 50 new companies and 200 new cooperatives or groups of external producers. It also projects that new investments will total $100 million. Mozambique’s electricity exports to southern Africa are expected to equal over five gigawatt-hours.
Nigeria: LNG facility to boost gas-based processing economy (ESI-Africa)
Nigeria’s first indigenously owned floating LNG facility with a nameplate production capacity of 1.2 million metric tons per year is to be built in Akwa Ibom State. The African Export-Import Bank (Afreximbank) and UTM Offshore Limited recently signed a project preparation facility agreement to develop, design and construct the facility.
Under the agreement, Afreximbank is to part-finance project preparatory activities that will de-risk the project and advance it to bankability “in a timely manner.” The Bank said it is leveraging its diverse product suite to provide end-to-end solutions to the project.
“Through its financial advisory mandate, Afreximbank has been playing an instrumental role in structuring the transaction to ensure optimal returns and debt sizing, as well as identifying equity investors to invest in the project on favourable terms. “Moreover, this project has economically transformative potential – establishing trade-enabling infrastructure which will allow Nigeria to pivot from a crude oil export-based economy to a gas-based processing industrial economy.” This, in turn, will unlock significant development impacts, it said. The project will also contribute to the reduction of flaring of natural gas.
Uganda, Mauritius reach new deal on double taxation (The East African)
Uganda and Mauritius have agreed on changes to their 2015 bilateral double taxation agreement (DTA) after months of talks. Among the changes are exclusive taxing rights for all hydrocarbon-based transactions in favour of Uganda, according to Uganda’s Finance Ministry. “The changes are awaiting ratification by the partner states,” said Moses Kaggwa, Director for Economic Affairs at the Ministry of Finance, Planning and Economic Development.
However, talks over a double taxation treaty with the Netherlands failed over technical services with the latter suggesting five percent withholding tax while Kampala insists on 10 percent.
The 2006 DTA between the two does not provide for taxation of technical services, accounting, property valuation, engineering and information and communications technology consultancy. Sources cite the country’s $10 billion commercial oil production programme and establishment of offshore subsidiaries by players involved in the oil and gas industry, as the rationale for taxing technical services.
Traders protest as Tanzania blocks 200 Uganda-bound rice, maize trucks (The East African)
The Government of Tanzania through its ministry of agriculture has temporarily suspended issuance of permits to Ugandan traders who export rice and maize flour from the country. As a result, about 200 heavy trucks loaded with rice and maize seeds have been barred from crossing to Uganda through Mutukula one-stop border post. The ban, according to a circular from the ministry, took effect on June 13.
Currently, the Tanzania Ministry of Agriculture in conjunction with the Tropical Pesticides Research Institute and Tanzania Fertilizer Regulatory Authority are conducting an assessment exercise on seasons, the availability of corn foods and manufacturing conditions of foods in their country for 2023/2024 financial year.
‘‘Permits for exportation for corn, corn flour and rice have been temporarily suspended until the government completes the assessment exercise, availability of crop seasons, shipping of corn foods and manufacturing conditions,’’ the circular reads in part.
The government of Tanzania has also reminded all traders dealing in cereal seeds to acquire all documents required to do the business.
‘‘The action by Tanzanian authorities is a non-tariff barrier aimed at pushing Ugandan traders out of business, yet Tanzania continues to import products from here [Uganda] ,” he said.
Northern Corridor truckers warn of fee increase on VAT doubling (The East African)
Kenyan long-distance transporters have said transport costs will increase starting July 1, after parliament voted to double value added tax (VAT) on petroleum products to 16 percent on June 21.With the uncertainty in the transport sector in the coming days, some transporters have announced plans to downsize staff to reduce the cost of operations to remain in business.
Transporters say increasing costs and non-tariff barriers on the Northern Corridor will increase the cost of doing business and, if not checked, it will benefit the Central Corridor, where the Tanzanian government is working to cut transport costs and improve infrastructure.
With the passing of the Finance Bill 2023, the current cost of transporting goods will increase from the current minimum of $2.35 per kilometre for transit goods and $2.25 for local cargo. High costs, increasing road tolls, multiple border charges, and bad road conditions have already been identified as factors that cause cost escalations for transporters on the Northern Corridor, which Dar is taking advantage to have a slice of Mombasa’s cargo throughput share.
Reopening Seme Border: An End To Economic Strangulation (iBrandTV)
President Bola Tinubu’s decision to fully reopen the Seme land border has resonated well with many who have applauded him for making economic policies geared towards improving the lives of many Nigerians.
At a time like this when the nations’ economy is at it’s lowest, reopening Seme border has been considered as a good strategy because it would allow businesses to access more markets.
With this, a major end has come to economic strangulation that has relegated the manufacturing industry in Nigeria. Manufacturers can now begin to source for raw materials from neighbouring countries easily while exploring options for expansion.
An open border enables the free movement of people and goods between jurisdictions with no restrictions on movement.
The manufacturing sector in Nigeria is at the brink of a collapse occasioned by the rising cost of production. Lack of infrastructure, FX shortage, huge tax burdens, Naira devaluation, and the Naira redesign policy of the Central Bank of Nigeria, among other issues add to the manufacturers woes.
AfDB to throw weight on SGR projects (Tanzania Daily News)
THE African Development Bank (AfDB) has expressed interest to finance the implementation of Standard Gauge Railway (SGR) project in Tanzania.
Recently, the governments of Tanzania and Burundi applied for financing from the AfDB toward the cost of the construction of the Tanzania/Burundi (Uvinza – Musongati – Gitega) SGR section. In May this year, the government announced an invitation for the initial selection work of the same.
This will be the phase one of the Tanzania – Burundi – DR Congo SGR project and intends to apply part of the proceeds from the loans to make payments under the contract for works for construction of SGR under Design and Build Arrangement.
In the meeting yesterday, Dr Mwigulu also noted that the AfDB has also expressed its intention to cooperate with the government in increasing capital to Tanzania Agricultural Development Bank Limited (TADB), which is the catalyst for the implementation of agricultural projects in terms of irrigation and value increment.
SACU Summit Communiqué, 29 June 2023
The 8th Summit of the Southern African Customs Union (SACU) Heads of State or Government took place on the 29th June 2023, in Mandvulo, Kingdom of Eswatini.
In the area of the Trade Facilitation and Logistics Programme, which includes customs cooperation, border coordination, behind-the-border measures, transport and logistics, support for trade agreements, and cross-cutting policy imperatives, the Summit noted the completion of an Operational Plan to guide its implementation.
The Summit noted with appreciation that all SACU Member States have ratified the Agreement establishing the African Continental Free Trade Area (AfCFTA). The SACU Provisional Schedule of Tariff Concession (PSTC) to the AfCFTA, which includes products with a full tariff reduction (90 percent) over a ten-year period, was adopted on the 31st May 2023. Additionally, all Revenue Administrations in SACU have completed the necessary documentation for the implementation of the AfCFTA.
Zambia creditors agree to restructure debt (The East African)
Zambia’s lenders, including major creditor China, have agreed to restructure the country’s public debt, officials said Thursday, providing financial relief to the first African nation to default after the Covid pandemic.
The agreement on $6.3 billion of Zambia’s debt was confirmed by a French official on condition of anonymity, on the sidelines of a summit aimed at revamping the international financial system to better tackle climate change and poverty. Zambia, Africa’s biggest copper producer, with a population of nearly 20 million people, defaulted on its $18.6 billion external debt in 2020 but negotiations had stumbled over differences between China and Western creditors. The United States had accused China of delaying the debt agreement.
DRC gets $203m IMF loan to boost dwindling forex reserves (The East African)
The Democratic Republic of Congo has received a $203.3 million loan from the International Monetary Fund (IMF) to boost the country’s foreign exchange reserves which have fallen to $4.5 billion, covering only two months of imports. The loan is part of the extended credit facility (ECF) arrangement with the multilateral lender reached in July 2021, which will see DRC get a total of 1.066 special drawing rights (SDRs) or about $1.52 billion by 2024.
The disbursement brings the total amount received under the arrangement to $1.02 billion.
“The current account deficit deteriorated to 5.3 percent of GDP, as higher export growth only partially compensated for higher imports and a more deteriorated service account,” IMF said in a statement on Wednesday. Kinshasa continues to grapple with a high trade deficit, currently at 5.3 percent of GDP, which has contributed to the continued drop in forex reserves, compounded by other internal and international economic shocks.
Ghana agrees restructuring deal with banks on some domestic debt (Reuters)
Ghana has reached an agreement with banks to restructure 15 billion Ghana cedi ($1.36 billion) of locally issued U.S. dollar bonds and cocoa bills, three sources close to the negotiations have told Reuters. The West African nation is seeking new terms for the restructuring of its domestic debt by the end of June to be able to meet an International Monetary Fund (IMF) deadline, and focus attention on negotiations with external creditors.
Ghana concluded the first phase of its domestic debt exchange in February, with 85% of eligible bondholders participating, but needs new terms for another 123 billion Ghana cedi ($11.18 billion) to qualify for the next tranche of a $3 billion IMF loan to address its worst economic crisis in a generation.
The gold-, cocoa- and oil-exporting country, which defaulted on most external debt in December, aims to reduce its external debt interest repayments by $10.5 billion over the next three years under an IMF bailout secured in May.
Evolution Of Debt Landscape Over The Past 10 Years In Africa (Africa.com)
Keynote Speech by Dr. Akinwumi A. Adesina, President, African Development Bank Group, Delivered at the Paris Club on June 20, 2023
The total external debt of Africa was estimated at $1.1 trillion in 2022. This is expected to rise to $1.13 trillion by 2023. This is due to several factors: the carry-over effects of the Covid-19 pandemic on economies and their fiscal space which led to downgrades of several countries; the rising costs of energy and food prices from the Russian-Ukraine war; and the rising costs of adapting to climate change.
The structure of Africa’s debt has changed dramatically in the past decade or more, accentuating a trend that started in the mid-2000s. I would like to discuss five trends.
The United States Agency for International Development (USAID), through the Power Africa Presidential Initiative, and the African Development Bank, have signed an extension and expansion of their existing Regional Development Objectives Agreement (RDOAG) on the margins of the Africa Energy Forum in Nairobi.
The move deepens the strategic partnership and expands the basis for cooperation in developing innovative and sustainable solutions to combat energy poverty, climate change, and strengthen energy systems in sub-Saharan Africa. Specifically, the agreement, targets ending energy poverty by 2030; accelerating the Just Energy Transition in Africa; and strengthening the enabling environment for clean energy.
The United States Agency for International Development (USAID), through the Power Africa Presidential Initiative, and the African Development Bank, have signed an extension and expansion of their existing Regional Development Objectives Agreement (RDOAG) on the margins of the Africa Energy Forum in Nairobi.
The five-year extension, running through September 2028, paves the way for up to $500 million in future contributions from the United States to further RDOAG’s objectives. To date, about $388 million has been channeled through the RDOAG, including direct support for the African Development Bank-managed Sustainable Energy Fund for Africa (SEFA) and the Bank’s Desert to Power initiative.
China-Africa trade index debuts, indicating strong growth (Xinhua)
The China-Africa Trade Index, based on trade-indicator data between China and African countries, was released for the first time at the opening of the third China-Africa Economic and Trade Expo on Thursday in Changsha, capital of central China’s Hunan Province. The index, which was released by the General Administration of Customs, shows strong growth in trade over the past two decades and indicates that trade between China and Africa has become increasingly close, with trade potential continuing to grow, said Lyu Daliang, director of the statistics and analysis department of the administration.
In the first five months of 2023, China’s total import and export volume with Africa reached 822.32 billion yuan (113.5 billion U.S. dollars), up 16.4 percent year on year, according to the administration’s data.
Trade facilitation cooperation to bring more African agricultural, food products to China (Xinhua)
China and African countries on Thursday proposed the establishment of a liaison mechanism for sanitary and phytosanitary (SPS) cooperation to strengthen the docking of inspection and quarantine standards and rules, which is key to facilitating African exports of agricultural and food products to China.
The China-Africa SPS cooperation information website was also launched at the event. Wang Lingjun, deputy director of China’s General Administration of Customs, signed agricultural and food product market access agreements with representatives from Madagascar and Zimbabwe at the meeting.
Strengthening SMEs and entrepreneurs key to a strong, resilient economy (OECD)
SMEs remain under pressure due to the combined effects of economic uncertainty stemming from Russia’s continuing war of aggression against Ukraine, the lingering effects of the COVID-19 pandemic and other geopolitical tensions that have weighed heavily on SMEs and entrepreneurs, which account for a critical 99% of all firms and employ two-thirds of private-sector workers. Large-scale, temporary government support played a critical role in protecting the livelihoods of entrepreneurs and SME workers. However, as monetary conditions tighten and fiscal support unwinds, firm bankruptcies are rising, and SMEs again find themselves at risk.
The new OECD SME and Entrepreneurship Outlook 2023 shows that many SMEs are struggling to recruit in a tight labour market and must also cope with higher levels of debt following the pandemic. The struggle to access finance for much-needed investment could have critical implications for the green and digital recovery, underlining the importance of the new OECD Recommendation on Financing SMEs in unlocking alternative forms of finance – including venture capital, crowd funding and other sources of investment capital.
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South African citrus growers say EU pest rules putting squeeze on exports (Reuters)
New European Union pest control rules will cut South Africa’s orange exports to Europe by 20% this year, threatening thousands of jobs, the Citrus Growers Association (CGA) has said. The new measures imposed by the EU last June require enhanced cold treatment for citrus exports due to concerns over False Codling Moth, a pest commonly found in sub-Saharan Africa, and Citrus Black Spot.
“Current estimates are that around 20% of oranges produced for Europe will not be shipped this year because of the new regulations,” CGA president Justin Chadwick said in a statement. “This means that approximately 80,000 tons of oranges might not make it to European supermarket shelves,” he said.
South Africa is the world’s second largest citrus exporter after Spain and sold 32% of its oranges into the European market last year, according to the country’s Perishable Products Export Control Board. The CGA wants South Africa to discuss the new pest regulations at a joint meeting of African Union and EU agriculture ministers to be held in Rome on June 30.
South Africa, Germany to establish a task force to drive green hydrogen production, trade (Engineering News)
Electricity Minister Dr Kgosientsho Ramokgopa has, on behalf of the South African government, signed a joint declaration for the planned establishment of a South African-German Hydrogen Task Force that will help to drive the commercial viability of green hydrogen projects, industry and infrastructure in both countries.
German Vice Chancellor and Minister of Economic Affairs and Climate Action Robert Habeck signed the declaration on behalf of the Federal Republic of Germany during a bi-national commission held in South Africa this week.
Central Bank set to be sole regulator of all payment systems (Namibia Economist)
To address uncertainty and inefficiencies in the national payment system regulations, the Minister of Finance and Public Enterprises, Hon Iipumbu Shiimi introduced the Payment Systems Management Bill in parliament this week to repeal the Payment Systems Management Act (Act 18 of 2003) as amended.
He added that as a result, the Central Bank began its legislative review of the Payment Systems Management Act in 2017, which included efforts like consulting payment legislation from other jurisdictions, engaging the national payment system industry, and consulting both the World Bank and the Financial Action Task Force (FATF) during 2020 and 2021 for input and guidance regarding the Bill.
In addition, the finance and public enterprises minister acknowledged that the national payment system was mainly characterized by bank institutions, albeit noting that ‘non-banks’ known as ‘fintechs’ are “increasingly” providing digital and electronic payment in the national payment system, Shiimi said in the National Assembly this week when tabling the Bill.
“Given this dynamism, the need to introduce enabling, flexible and robust legislation was apparent to embrace innovation, promote competition and manage risk in the ecosystem. In addition to this, several significant gaps and shortcomings were identified in the existing legislation, which is salient in enabling the Bank to effectively regulate and oversee the national payment system,” Shiimi affirmed, adding that the proposed legislation will put the Bank in a position to promote regional and continental payment system integration and harmonize SADC payment system laws.
Regional NGOs warn Kenya on EU trade deal (The Independent Uganda)
Eastern and Southern African trade promotion organisations are pushing for the rescinding by Kenya of the recent agreement with the European Union to implement the Economic Partnership Agreement (EPA) between them. They say the deal pauses “imminent danger” to the integration of East Africa and the continent as a whole, as well as the ongoing trade initiatives like African Continental Free Trade Area.
The Southern and Eastern Africa Trade Information and Negotiations Institute, SEATINI, Uganda, SEATINI Southern Africa and Akina Mama Wa Afrika say Kenya’s move to implement the deal will have far-reaching impacts on the region and continent. SEATINI Uganda Executive Director, Jane Nalunga says Kenya should have first pushed EAC governments to put in place measures that would respond to the outstanding issues.
PM Ngirente, EU delegation discuss trade partnership (The New Times)
Prime Minister Edouard Ngirente held a meeting with the European Union (EU) delegation, at his office on June 27 and discussed various areas of partnership to boost trade and investments.
Speaking to the media, Doens pointed out that the meeting with Prime Minister was the opportunity to take stock to make a joint assessment of what happened over the past two days in the EU- business forum held in Rwanda for the first time.
Rwanda has a strong health agenda and aims to attract EU investors interested in value addition. This is largely due to the government’s clear agenda, knowledge of its strengths, and strong implementation capacity. The one-stop center further facilitates doing business in Rwanda, making it a favorable investment destination for EU investors, he added.
Customs: Seychelles adopts REX for exports to EU from July 1 (Seychelles News Agency)
A new self-certification system called the Registered Exporter System (REX) will go live in Seychelles as of July 1 for goods originating from the island nation to the European Union countries. According to the manager of classification, valuation and rules of origin in the Customs Division, Gerda Cesar, this is a system that will replace the EUR.1 which is currently being used.
“This means that all exporters who send their products to European countries such as Belgium and France and were using the EUR.1 certificate to benefit from the reduced taxations except for those sending products to the UK, will also use this as proof that their products originate from Seychelles,” explained Cesar.
President Ruto to ban imported shoes in 2 years (Capital Business)
President William Ruto will ban imported shoes in two years to support the local leather industry that has been facing cheap products from abroad. Instead, the Head of State said that the country will use its own skins to make the products.
He said that the country’s leathers were being given to dogs while the country was buying alternatives from abroad at exorbitant prices between Sh20,000 and Sh40,000.
To support the industry, the Government has allocated nearly Sh2 billion for the treatment of cowhide to improve the local supply chain. This, he said, will increase earnings for farmers who sell their hides at throw-away prices.
Fuel Subsidy Reform Offers a Path to a Resilient, Sustainable Economy in Central African Republic: World Bank Report (World Bank)
The economy of the Central African Republic is projected to return to growth this year after stalling in 2022. Heavy flooding and severe shortages of fuel took a heavy toll last year on the economy and people, who experienced high levels of acute food insecurity, says the latest edition of the World Bank’s Central African Republic (CAR) Economic Update.
Economic activity in CAR may see a modest rebound over the medium term, with growth projected at 3.6% in 2024 and 2025, provided that fuel supply in the domestic market improves and the security gains continue. This outlook is driven by anticipated higher international prices of timber, CAR’s main export, owing to a rebound of global demand, particularly from China.
The report focuses on much-needed reforms on fuel subsidies, which have surged globally as international oil prices began rising in late 2020, reaching new heights in 2022 amid the war in Ukraine. In CAR, fuel subsidies represented about 0.5% of GDP and accounted for nearly 6% of domestic revenues and 6.3% of tax revenues in 2022.
“A well-designed fuel subsidy reform should include a robust mitigation package that offers targeted support to the most vulnerable segments of society,” explains Pierre Mandon, co-author of the report.
Nigeria Can Seize the Opportunity to Realize Its Growth Potential (World Bank)
The new administration has initiated critical reforms to address macroeconomic imbalances. This window of opportunity could have a transformative impact on the lives of millions of Nigerians and establish a solid foundation for sustainable and inclusive growth.
The removal of the petrol subsidy and foreign exchange (FX) management reforms are crucial measures to begin to rebuild fiscal space and restore macroeconomic stability, and the opportunity should be seized to take further, necessary policy reform steps, says the latest Nigeria Development Update (NDU). The June 2023 edition of the NDU, titled “Seizing the Opportunity”, adds that it is critical to implement a comprehensive reform package that encompasses a range of complementary measures, including a new social compact to protect the poor and most vulnerable, to maximize the collective impact on growth, job creation, and poverty reduction.
Egypt’s foreign trade hit $58.5bln in H1 FY 2022/23: CBE (ZAWYA)
The volume of Egypt’s foreign trade hit $58.559bn in the first half of the fiscal year (1H FY) 2022/23, according to the Central Bank of Egypt (CBE). Imports accounted for $37.054bn, while exports totaled $21.505bn.
The CBE’s monthly report said that trade exchange between Egypt and its top 14 trading partners, which accounted for 62.9% of the total volume of trade exchange, amounted to $36.821bn. Of this, $22.211bn were exports and $14.61bn were imports.
The UAE ranked first as Egypt’s top trading partner, with a volume of trade exchange of $4.873bn. China was second with $4.114bn, followed by the US with $4.040bn. Saudi Arabia was fourth with $3.550bn, and Turkey was fifth with $2.686bn.
Tunisia: Balance of trade in fishery products posts surplus (ZAWYA)
The trade balance in fisheries products recorded a surplus of TND 83.2 million in the first four months of 2023, down 19.4% compared with the same period in 2022, according to data from the National Observatory for Agriculture (ONAGRI) published on Monday. The value of exports of fishery products fell slightly by 3.7% in quantity to 10.3 thousand tonnes and by 3.6% in value to TND 200.5 million at the end of April 2023, compared with the same period last year.
The most commonly exported species are fish, crustaceans, preserves and semi-preserves. Tunisian exports of fishery products are spread over 37 destinations, including Italy, the leading importer (accounting for 35.5% of total exports), followed by Libya (19.4%), the United Arab Emirates (13.7%) and Spain (9.7%).
China to strengthen cooperation with EAC in capacity building and trade (EAC)
The People’s Republic of China has pledged to strengthen cooperation with the East African Community (EAC) in capacity building, trade, infrastructure development and other fields.
The Chinese Ambassador to Tanzania and the EAC, H.E. Chen Mingjian, said that China as the world’s largest developing country was highly optimistic about promoting economic growth not just in the EAC but on the entire African continent.
Amb. Mingjian said that China would remain a staunch and strong supporter of EAC on development matters, and reaffirmed her country’s desire to strengthen collaboration and solidarity with the Community for the mutual benefit of both parties.
How scramble for food is affecting regional trade (The Citizen)
Cereal traders in eastern, central and southern Africa are finding it increasingly difficult to conduct business as countries employ new tactics to restrict exports and protect their citizens against looming hunger. There were complaints from Ugandan traders last week after they learnt that Tanzanian authorities, through the Agriculture ministry, had temporarily suspended the issuance of rice and maize export permits.
The suspension is in line with a government circular that took effect on June 13, 2023. The circular seeks to enable the government to take stock of the availability of cereals and food processing during the 2023/24 financial year. Tanzania has also issued new directives aimed at formalising trade in food crops for the benefit of the government, farmers and foreign traders.
Agriculture minister Hussen Bashe said recently that the directives, which include the issuance of maize export permits, do not target any neighbouring country and that the government expected traders to comply.
MOWCA, Afreximbank begin talks on ship financing (The Guardian Nigeria)
The Maritime Organisation of West and Central Africa (MOWCA) has commenced talks with Afreximbank on ship financing and procurement of other maritime assets for African investors and maritime stakeholders. After a virtual bilateral meeting between MOWCA and Afreximbank, both organisations agreed on the need to expand maritime business opportunities and strengthen the planned Africa-wide cabotage regime to boost investments and generate jobs.
According to Secretary-General, MOWCA, Dr. Paul Adalikwu, seaborne trade is dominated by the giant shipping lines from Europe and Asia, noting that the only profit Africa makes is the registration fees of the vessels in some member states and port fees when they call to discharge cargoes leading to capital flight. He said for the objectives of AfCTA to be realised, there must be African-owned vessels plying the continent.
He further indicated that shipping needs modernisation of African ports with intermodal connectivity, such as rail, road, pipeline and inland waterways, as well as the development of dry ports to solve the problem of likely congestion.
Bright outlook for Africa-Asia cargo, amid concern over Sudan conflict (The Loadstar)
The Africa to Asia trade route has experienced a significant boost in cargo demand recently, but concerns have arisen over potential logistical problems caused by conflict in Sudan.
“Our monthly statistics show there is sufficient capacity to support the increasing air cargo demand in recent months,” said Bojan Wang, an IATA economist in the industry analysis unit.
A source at Ethiopian Airlines (ET) told The Loadstar: “We have enough capacity to connect and serve Africa and Asia via air and sea-air modality logistics services. However, in the future, partnership options [potentially with Chinese operators] will be reviewed in line with the prospect business growth and the change in the overall macro-economic environment.”
But even with demand between Asia and Africa showing positive trends, there are concerns about political instability in places like Sudan, that might create logistical problems.
“Sudan’s air space is closed and supply chains have been disrupted in the region,” said Mr Wang. “Sudan is among the largest producers of grain harvests in Africa, and the conflict might undermine efforts to boost wheat production there. As observed in Ukraine, the conflict in Sudan will likely force air cargo carriers to suspend or modify operations, causing knock-on effects to supply chains.”
Looking ahead, the most important challenge, and opportunity, is to significantly increase Africa’s share in global trade and air cargo activities, including balancing inbound and outbound cargo. This was a hot topic at the TIACA regional summit in Kenya last week.
Transition Support Facility: Focusing on MSMEs for post-Covid reconstruction in Africa (AfDB)
To face the unprecedented new global challenges brought about by the COVID-19 pandemic, the spotlight has turned to the importance of the private sector in building resilience in transition states and in particular, the crucial role of supporting micro, small and medium-sized enterprises (MSMEs).
Indeed, the latter have seen their already pre-existing fragility aggravated by the consequences of the health crisis. It is now clear that promoting an enabling environment for MSMEs is crucial for economic recovery, poverty reduction and long-term stability. Efforts are now being made to empower SMEs, especially those owned or created by women and/or young people, in order to harness their potential for job creation, stimulate innovation and strengthen local economies, and thereby pave the way for a more resilient post-pandemic era on the African continent.
Between 2020 and 2022, the Transition Support Facility (TSF), a disbursement mechanism designed to help countries consolidate peace, build resilient institutions, stabilize their economies and lay the foundations for inclusive growth, funded projects addressing the imperative of building resilience in more than 10 African states in transition, countries where the main development challenge is fragility
How to make small businesses in developing countries more competitive (UNCTAD)
Sitshengisiwe Ndlovu found her calling in supporting women small traders during her previous work as a customs officer in her native Zimbabwe. She met many women who made a living out of small-scale cross-border trade and came to understand their challenges first-hand. For example, they often lack knowledge in trade procedures and applicable duties and taxes, exposing them to fines and confiscation of goods. Such barriers, if left unaddressed, risk the survival of these micro, small and medium-sized enterprises (MSMEs).
The annual MSME Day marked on 27 June spotlights the contributions of small businesses to achieve the 2030 Agenda and the UN’s Sustainable Development Goals. According to the World Bank, these enterprises represent about 90% of businesses globally and create 70% of formal jobs in emerging economies. This year, the focus is on galvanizing MSMEs worldwide by supporting women and youth entrepreneurship and resilient supply chains.
Developing country leaders rallied in Paris, highlighting the urgency for reform of the global financial architecture to counteract economic, environmental and social adversities, and to rescue the Sustainable Development Goals.
“Predictable, affordable and sustainable financing is critical to allowing African countries to get back on track to achieve the Sustainable Development Goals,” Economic Commission for Africa (ECA) Acting Executive Secretary, Antonio Pedro, said at the Sustainable Debt Coalition event organized on the margins of the Summit for a New Global Financing Pact in Paris.
The Sustainable Debt Coalition, launched by the Government of Egypt at COP27, aims to address critical financing challenges faced by emerging markets and developing economies, particularly the debilitating impacts these have on climate action and development. It introduces a fresh consultation pathway that intersects debt, climate, and developmental concerns, fostering dialogue for innovative solutions.
Gender Gap Report 2023: Challenges Remain in Economic Participation and Opportunity - Modern Diplomacy (Modern Diplomacy)
India has climbed eight places in the annual Gender Gap Report, 2023, and now is in the position of 127 out of 146 countries in terms of gender parity, which was 135 last year. The recently released 17th edition of this report by the world economic forum (WEF) evaluates gender parity On the basis of four key markers of the index – The Global Gender Gap (GGG) index measures and tracks the economic participation, educational attainment, health and survival, and political empowerment of a nation.
This year by crossing 64.3 percent of its overall gender gap, India opens its window of opportunities in the global sphere.
An analysis of the Initiatives that India has taken all through its journey to reduce gender gap in social, economic and political life could give an explicit picture of development master plans. The “Mahila Shakti Kendra” scheme aims to empower rural women by providing skill development opportunities and avenues for employment. However, the country is lagging behind in economic participation and opportunity, with only 36.7 percent parity.
UNCTAD measures progress on sustainable development goals, shows impact of global crises (UNCTAD)
UNCTAD released on 27 June the fifth edition of its annual SDG Pulse, a global reference for tracking progress towards achieving the Sustainable Development Goals (SDGs) by 2030.
This year, the report’s “In-Focus” section looks into the costs of achieving the SDGs to identify where financing is most needed and to help better target efforts.
The data shows that the COVID-19 pandemic, the war in Ukraine and the climate crises are having a devastating effect on progress towards the SDGs. “We’ve reached the halfway mark of the 2030 Agenda, and multiple global crises are battering our economies, societies and the planet,” said Anu Peltola, who leads UNCTAD’s statistics work. “It’s more important than ever for policymakers to have timely and reliable data and analysis to guide their decisions.”
New submissions revitalise agriculture talks ahead of ministerial conference (WTO)
Members presented three new submissions on domestic support to the agricultural sector — which is widely seen as a priority in the talks by WTO members because of its impact on the ability of producers to compete fairly in global markets.
The African Group reiterated its call for caps on domestic support that exceeds the “de minimis” threshold, which is defined as a share of the value of agricultural production and set at different levels for developed and developing economies. They also proposed limiting some types of support which is currently classified as “green box” — meaning it is allowed without limit so long as it does not cause more than minimal distortion to trade and production.
WTO webinar looks at how South-South, multi-party cooperation supports developing economies (WTO)
Citing 2022 data from the United Nations Conference on Trade and Development, DDG Zhang noted that the share of South-South trade in world trade has expanded from 17 per cent in 2005 to 28 per cent in 2021. Its value has increased by approximately 50 per cent since 2019. South Asia and East Asia have witnessed growth of over 65 per cent and Latin America of about 45 per cent.
Encouraging South-South and triangular cooperation partners to use the Aid-for-Trade platform to share their experiences, expertise and good practices, DDG Zhang called on members to seize “this opportunity to forge long-term collaboration, exchange best practices, and develop innovative solutions that will shape a brighter and more prosperous future for all.”
Members discuss cybersecurity, intangible digital products, raise over 60 trade concerns (WTO)
The new chair of the TBT Committee, Anna Vitie (Finland), drew attention to a new WTO brochure highlighting the work of the TBT Committee in 2022. “Technical Barriers to Trade Agreement: 10 key results from 2022”.
Members stressed that, with various regulations on such emerging digital technologies currently being developed at national or regional levels, it is important to consider the crucial role of international standards in addressing regulatory fragmentation. At the same time, given the nature of accompanying issues such as privacy, the limits of harmonization via international standards was also recognized.
Members highlighted the important role of the TBT Agreement and the TBT Committee in ensuring regulatory harmonisation via international standards or when this is not possible, in promoting coherence and avoiding unnecessary trade restrictions.
China formally accepts Agreement on Fisheries Subsidies (WTO)
China deposited its instrument of acceptance for the Agreement on Fisheries Subsidies on 27 June, affirming its support for the historic agreement for ocean sustainability as the world’s leading marine fishing producer. Director-General Ngozi Okonjo-Iweala received the instrument from Commerce Minister Wang Wentao in Tianjin, China ahead of the World Economic Forum’s 14th Annual Meeting of the New Champions.
DG Okonjo-Iweala said: “I am delighted to welcome China’s formal acceptance of the Agreement on Fisheries Subsidies. As the world leader in marine fish catch, China’s support for the implementation of this agreement is critical to multilateral efforts to safeguard oceans, food security, and livelihoods. By curbing harmful fishing subsidies worldwide, we can together forge a path towards a legacy of abundance and opportunity for generations to come.”
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Global development financing must achieve local benefits (SAnews)
With improved funding for South Africa’s Just Energy Transition, the country will be able to invest significantly in bolstering the electricity grid and new renewable energy generation.
In his weekly newsletter to the nation on Monday, President Cyril Ramaphosa said this will significantly help to end load shedding. The President’s newsletter comes after his participation at the New Global Financing Pact Summit in Paris last week, where several world leaders gathered.
“With improved funding for our Just Energy Transition, we will be able to invest substantially in strengthening our electricity grid and new renewable energy generation. “This will make a significant contribution to ending load shedding and securing a reliable and affordable supply of electricity. This will, in turn, promote economic growth, make our exports more competitive and create employment,” he said.
Reflecting on the summit, President Ramaphosa reiterated that global development financing, if properly directed and provided on a significant scale, can make a huge difference to the lives of people living in countries like South Africa.
“The industrialisation and economic development of the Global North was achieved at the expense of the Global South. Wealthier countries therefore have both an obligation and an interest in supporting development and climate action in poorer countries. “As South Africa, we argued for a fundamental overhaul of the international financial institutions that are responsible for supporting development across the world,” he said.
Namibia’s cosmetics and essential oils sector flourishes (The Namibian)
Industrialisation and trade minister Lucia Iipumbu says Namibia’s cosmetics and essential oils sector has grown in domestic production, enhancing possibilities for active participation in the regional value chain.
“For example, our exportable firms increased from five in 2016 to more than 35 by 2022 through concerted efforts by the private sector, the Namibian government and development partners,” Iipumbu said.
At SADC level, Namibia has prioritised sectors for value chain development, namely agro processing (leather processing), pharmaceutical, automobile, mineral beneficiation and tourism, she said.
Speaking at the same event, sport deputy minister Emma Kantema-Gaomas said women and youth traders are less likely to be equipped with appropriate skills in technology and resources to fully reap the fruits of the trade area agreement. “Moreover, it’s important to note that the youth could play a critical role with the success of this trade area, also noting that Africa is one of the youngest populations, where we have 60% of our inhabitants under the age of 25,” Kantema-Gaomas said.
Kenya: African Development Bank Group Board okays funds to support women and youth in agribusiness (AfDB)
The Board of Directors of the African Development Bank Group has approved an equity investment of €18 million in the Africa Guarantee Fund (AGF) and another €1.2 million to support youth and women entrepreneurs engaged in agricultural value chains in Kenya.
Mrs. Nnenna Nwabufo, the Bank Group’s Director General for East Africa, noted the approval as “another milestone in the implementation of the partnership with the EU, which also signals the importance given to the role of women and youth in the agricultural sector in Kenya.”
The demand for Micro, Small, and Medium Enterprises (MSME) financing remains unmet in Kenya and has been aggravated by the disruptions of the Covid-19 pandemic. The International Finance Corporation (IFC) estimates an SME finance gap of US$19.38 billion, representing 30 percent of the country’s GDP.
The World Bank’s Covid-19 Business Pulse Survey (BPS) shows that many potentially viable firms are still struggling. The agriculture sector employs the largest share of the population, especially in rural areas, and accounts for 60 percent of Kenya’s export.
FG okays re-opening of Seme border for vehicle importation (Vanguard)
Director of Road Transport in the Ministry of Transportation, Ibrahim Musa, yesterday, disclosed that the Federal Government has approved the re-opening of the Seme border for the importation of vehicles. Speaking at the Economic Community of West African States, ECOWAS, meeting, organised between officials of Nigeria and Benin, Musa said the development followed complaints by freight forwarders operating at the Seme border.
The director, who spoke at the ECOWAS Monitoring Team’s visit to the Seme-Krake Joint Border Post, said: “I was here with the former Minister of State for Transportation when the Freight Forwarders pleaded that the border should be reactivated for the free movement of goods and services.
“The former minister made us prepare a memo to that effect. It was considered and sent to the government.”
SON Tasks Auto Stakeholders to Embrace Standards for Global Competitiveness (This Day)
The Standards Organisation of Nigeria (SON) has tasked stakeholders in the auto industry to take advantage of standards to remain competitive and relevant especially as the Africa Free Trade Agreement (AfCFTA) is on the cards.
The Director General, SON, Mallam Farouk Salim, at a sensitisation programme for Auto Spare Parts and Machineries Dealers Association (ASPAMDA) in Badagry area of Lagos, said the operationalisation of AfCFTA would turn Nigeria and indeed the entire African continent to one huge market, he said AfCFTA would provide for Nigeria the competitive edge in trading with other neighboring countries’ auto and machineries dealers.
“We all must ensure that only products that comply with laid down Nigeria Industrial Standards are available for sale in this market. SON frowns at the practice of cloning successful brands by unscrupulous businessmen to make quick gains, depriving the trade mark owners of their benefits.” According to him, the SON Act 2015 empowers the agency to arrest and prosecute offenders, stressing that it would step up its ante to make it impossible for fakers to thrive.
NEPZA: Economic Zones Attracted $364.6m FDIs in 4 Years (This Day)
The Managing Director/Chief Executive, Nigeria Export Processing Zones Authority (NEPZA), Prof. Adesoji Adesugba, has disclosed that the country attracted $364.6 million in Foreign Direct Investments (FDIs) between 2020 and the first quarter of the year (Q1 2023).
Speaking at an interactive session with journalists, he said if given the necessary support, the scheme could transform the investment landscape within a short time, adding that the foreign capital inflows had led to the creation of over 30,741 jobs in the economy.
He said about $102.93 million was recorded from international exports, while N1.14 trillion came from the domestic market.
The NEPZA boss said the zone would help enhance the competitiveness of locally manufactured products as well as put an end to dumping in the country and boost employment generation.
He, however, stressed that although successes had been recorded, more work needed to be done to ensure the free zones are made attractive to investors.
Benin Can Boost Economic Transformation by Modernizing Road Networks and Economic Corridors (World Bank)
A renewed effort and increased investment in developing and modernizing the roads and ports network in Benin could help transform the country’s economy and the lives of its people, says the World Bank’s first-ever Benin Economic Update.
Titled “Taking Advantage of Benin’s Strategic Position by Investing in Economic Corridors”, the first part of the report analyzes the latest economic developments and provides a mid-term outlook for Benin. Annual growth is expected to hover around 6% over the medium term. While the macroeconomic outlook remains robust, there are vulnerabilities related to tighter access to international finance and uncertainty in aggregate demand, underscoring the importance of a credible fiscal consolidation path to ensure medium-term stability.
The second part of the report focuses on the potential for developing Benin’s transportation sector and economic corridors. It notes that Benin is strategically located in west Africa and serves as a gateway to landlocked neighboring countries, such as Niger and Burkina Faso. The country’s port of Cotonou is also the closest and fastest transshipment point to the port of Lagos in Nigeria, the largest economy in western Africa.
Trade seen growing as Afreximbank, Ghana develop railway corridor (Businessday Nigeria)
The cost of transportation is expected to reduce by 30 percent as African Export-Import Bank (Afreximbank) and Ghana Railway Company, the national railway operator of Ghana, on Friday signed a project preparation facility Head of Terms agreement and Pre-Mandate Letter to finance the development and implementation of an integrated 299-kilometer (“km”) standard gauge railway network that connects Ghana’s western corridor to the Port of Takoradi and provides an essential link to external markets.
The Bank will avail early-stage project preparatory funding to finance the preparation of bankable feasibility studies. The Pre-Mandate Letter appoints Afreximbank to perform certain tasks in advance of the project attaining bankability aimed at raising the debt facility amount, currently estimated at US$ 2.1 billion.
The Bank believes that pursuing railway investments along the continent’s trade corridors would expand existing capacities and create new routes, links and pathways for value-added goods to be transported from manufacturing and processing areas to regional and global markets, thereby promoting intra-African trade within the AfCFTA context. This is evidenced by new mining projects and expansion of existing mining projects being planned in the country that stand to benefit from the project through more efficient and competitive transportation of imports and exports thereby boosting trade, regional integration and overall economic development.
Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said, “The Western Railway Corridor project is a vital transport network for Ghana, and Afreximbank’s support is in line with our commitment to help member countries address key trade-enabling infrastructure bottlenecks through private sector-led investments that will unlock significant pent-up demand for Ghanaian mineral and agricultural commodities in regional and international markets.
Infrastructure investment critical for success of AfCFTA (SAnews)
Deputy President Paul Mashatile says the success of the African Continental Free Trade Agreement (AfCFTA) depends on the investment in infrastructure in the areas of electricity generation, transportation, as well as freight and logistics distribution.
“This is because Africa’s trade integration has been hampered for decades by the ageing infrastructure and too many regulations which require reforms,” Mashatile said.
Addressing the All Africa Business Leaders Awards on Friday, the Deputy President said investing in infrastructure is crucial to unlocking the potential for Africa to experience growth at faster rates but more importantly, to ensure inclusive diversification.
“We must surely invest in infrastructure because it is a critical driver of success across Africa. It makes a substantial contribution to human development and poverty alleviation,” he said.
UBA partners with AfCFTA to invest $6bn to finance SMEs in Africa (The Ghana Report)
United Bank for Africa (UBA) Plc on Monday, June 19, signed an agreement with the Africa Continental Free Trade Area (AfCFTA) Secretariat to invest $6 billion as funding for African Small and Medium Enterprises (SMEs) within the next three years.
A breakdown of the $6 billion investment shows that a total of $1.2 billion has been budgeted for the year 2023; $1.9 billion for 2024 and $2.88 billion for 2025.
By this agreement, UBA to boost intra-Africa trade, will provide financial services in four main areas which are agro-processing, automotive, pharmaceuticals, and transport and logistics, to small and medium enterprises (SMEs) in all the 20 African countries where UBA operates.
UBA Group’s Deputy Managing Director, Muyiwa Akinyemi said, “We entered into this partnership because we see the future of intra-African payments developed by AfCFTA, which will ease payment constraints across 54 countries in Africa (with about 40 different currencies) powered by the Pan-African Payment and Settlement System (PAPSS).” Continuing, Akinyemi said, “However, we need to develop these businesses before we can talk about helping them trade, which is the strength of UBA, as we are vital in supporting SMEs, and with our presence in 20 African countries, we say your small business is big business.”
Ecobank, PAPSS partner on cross-border payments (IT-Online)
Ecobank Group and The Pan African Payment and Settlement System (PAPSS) have signed a Memorandum of Understanding (MoU) to facilitate settlement of Ecobank’s cross-border transactions, including the transactions of all its subsidiaries, through PAPSS.
Established by the African Export-Import Bank (Afreximbank) and the Africa Continental Free Trade Area (AfCFTA) Secretariat, PAPSS is a financial market infrastructure that provides a secure and efficient channel for processing cross-border payments, ensuring speed, affordable cost, and reliability in order to facilitate intra-African trade.
During the MoU signing ceremony T the 30th Afreximbank Annual Meeting (AAM), PAPSS also introduced the Commercial Bank Settlement Model, a new settlement model which offers the commercial banks a window to open and fund their own settlement accounts at Afreximbank and manage their own liquidity according to their banking needs.
By leveraging the capabilities of PAPSS, Ecobank affiliates in 33 countries with over 32-million customers, will streamline and expedite the transfer of funds while ensuring transparency and compliance under the Regulators supervision.
Manufacturers call out states for using EAC CET loopholes for cheap imports (The East African)
Manufacturers are worried about East African Community partner states’ frequent applications of stay of the EAC Common External Tariff on goods and foodstuff, saying it will lead to price distortion.
The EAC allows CET on certain products to enable the partner states to apply higher or lower import duty rates to protect local industries from competition arising from cheap imports or reduce the cost of inputs required by certain industries. But the application of stay by the partner states on a wide range of products has raised concerns among industrialists.
“When you apply for stay of CET on products that are readily available within the EAC, you are either creating a trade distortion, or protecting an inefficient producer vis-a-vis the region’s producers,” said John Kalisa, CEO of the East African Business Council.”For a stay of application to be justified you must demonstrate that there is a shortage of those products within the region.”
Kenya’s Treasury Cabinet Secretary Prof Njuguna Ndung’u said the stay Nairobi has applied for one year is for rice, imported iron and steel products, vegetable products (sic), baby diapers, leather and footwear products, paper and paper products, all which attract a 35 percent CET.
EAC urged to speed up sanctions against Partner States not paying contributions (The New Times)
With very limited contributions from Partner States to the East African Community (EAC), which are even in some cases delayed or not remitted, the realisation of deeper and wider regional integration is questionable, Members of the East African Legislative Assembly (EALA) have said.
To tackle the issue, they urged the region to expedite sanctions against Partner States who do not honour their contributions to the bloc.
While presenting the report on an analysis of EAC budget for the 2023/2024 fiscal year during an EALA plenary session in Tanzania on June 22, MP Kennedy Ayason Mukulia, Chairperson of EALA’s Committee on General Purpose, said the Committee noted that no effort has been made to sanction the non-compliant Partner States in terms of paying contributions to the bloc’s initiatives.
The United Nations Economic Commission for Africa Sub regional Office for Southern Africa (ECA SRO-SA) in collaboration with the SADC Business Council held a three-day Regional Meeting on Technology and Innovation for Micro, Small and Medium Enterprises (MSMEs) in Southern Africa, preceded by the presentation of TechniAfrica, a Technology and Innovation Platform for MSMEs for Southern Africa which remains to be operationalized.
The objectives of the two consecutive events were to stimulate discussions among key stakeholders on the role of technology and innovation for MSMEs, assess the major gaps in relation to innovation eco-systems, reflect on main policy reforms and promote networking and exchanges of experiences and best practices among MSMEs, the public and private sectors in Southern Africa.
To attain the above objectives, the meeting deliberated on draft study reports and survey results funded under two United Nations Development Account 13th tranche projects titled “Innovative approaches for MSME competitiveness to promote trade and inclusive industrialization in Southern Africa in the Post-COVID context” and “Global MSME Surge”.
Ministers responsible for Environment, Natural Resources and Tourism from the Southern African Development Community (SADC) have called for prioritisation of policies, projects, and activities on environment, natural resources and tourism in the region.
The call was made during the virtual meeting of the Ministers responsible for Environment, Natural Resources and Tourism which was held on 22 June 2023 to review progress on activities and projects supporting the implementation of SADC Protocols and strategies to support environment, natural resources and tourism sectors.
Ambassador Joseph Nourrice, the SADC Deputy Executive Secretary responsible for Corporate Affairs reiterated the urgent need for the SADC region to address challenges such as environmental degradation, climate change impacts, illegal harvesting of natural resources, and under-development of tourism, which are recurrent, pervasive and significantly affecting agriculture, infrastructure, human health, terrestrial and marine ecosystems as well as water resources.
African Union Private Sector Forum (AU)
The African Union Commission, has throughout the years worked closely with the private sector to define the significant role and great contribution by the Private sector in driving the economic development Agenda of the continent. The efforts are a demonstration of the African Union’s commitment towards enhancing the private sector capacity to contribute towards the realization of Agenda 2063 and be part of the global value-chain, for inclusive and sustainable growth in Africa.
The AU Commission is organizing the 14th African Private Sector Forum under the theme “Strengthening Public-Private Partnerships to accelerate trade and investments in Africa” focusing on how to enhance Public - Private Sector engagement for inclusive growth and sustainable development, relatedly, deepening regional and continental trade and investment towards the implementation of the African Continental Free Trade Area (AfCFTA).
India plans to revive trade deal with SACU (Mint)
Amid declining merchandise exports due to demand slowdown in the west, India is placing renewed focus on striking a trade deal with a union of five countries of Southern Africa that could give a leg up to exports of pharmaceutical products and automobiles, two people aware of the development said.
The resource rich Southern African Customs Union (SACU), a customs union among five countries of Southern Africa: Botswana, Eswatini, Lesotho, Namibia, and South Africa, is one of the largest suppliers of raw primary or semi-processed commodities. According to the ministry of commerce, five rounds of negotiations regarding a potential India-SACU preferential trade agreement have been held thus far. The first round of discussions took place in 2007 and talks stalled in 2010. However, reports indicated that both sides had agreed to revive the talks in 2020. According to persons aware of the matter, talks between both sides have made progress.
This comes as trade experts have pointed out that diversification of exports is crucial as 40% of India’s export orders come from just seven countries and hence are more susceptible to external shocks. Currently, US and Europe form nearly one-third of India’s merchandise exports and have driven outbound shipments in the last decade.
“SACU is a developing country union so it won’t have non-trade issues in the deal such as labor, gender and environment. So it will be relatively easier to complete negotiations. We can sign a FTA with them. There is a lot of complementarity between India and South Africa. We are importing coal, diamonds, gold, and iron ore,” first person aware of the development said.
The consequences of the Russia-Ukraine war on Cemac countries in 2022 (Beac’s review) (Business in Cameroon)
The Bank of Central African States (Beac) has presented its view on how the ongoing war between Russia and Ukraine has impacted the Cemac economies in 2022. In a recent economic and statistical bulletin, the institution observed a V-shaped impact resulting from the conflict.
On a good note, “the economic growth went from 1.8% in 2021 to 2.9% in 2022 thanks to a good impetus in the oil and gas sector in the region, despite a slight decline in the non-oil sector”. However, before the war started, Beac was expecting a 3.2% growth, meaning the war caused a loss of 0.3pts.
Although there has been an improvement in the prices of crude oil and natural gas on the international market, with positive financial repercussions for Cemac countries, demand was less vigorous. Beac points out that gross domestic demand has made a smaller contribution to Cemac growth in 2022, even though it remains the main driver of real growth in the region (2.1 points in 2022, against 7.4 points in 2021), with a slight decline in the contribution of private consumption (3.5pts in 2022, against 4.0pts in 2021) and that of public consumption and gross investment (- 1.1 points and - 0.4 points respectively).
Beac found, is an improvement in the public finances of Cemac countries as a result of “the upward trend in the prices of exported products (...), particularly crude oil”. Overall, the budget balance, including grants, reached 2.5% of GDP in 2022, compared with -1.2% of GDP in 2021. Before the start of the crisis, it was forecast at 0.5% of GDP, an increase of 2.0 percentage points.
Commodities at a glance: Special issue on phosphate (UNCTAD)
Phosphorus, like nitrogen and potassium, is an essential nutrient for plant growth, contributing to root development and maturation.
Phosphate fertilisers, which provide plants with phosphorus when it is lacking in the soil, therefore play an essential role in plant life. They help maintain a high level of agricultural productivity. Along with irrigation, high-productivity seeds and plant protection products, they are an essential component of food security.
However, phosphate fertilisers remain difficult to access in many developing countries. Costly to produce and transport, they are also complex to use, requiring precise agronomic knowledge of soils and plants.
These difficulties are particularly detrimental to the least developed countries, which do not always have the necessary resources in terms of investment and human capital to ensure wider access to these inputs.
Renewables growth did not dent fossil fuel dominance in 2022, report says (Engineering News)
Global energy demand rose 1% last year and record renewables growth did nothing to shift the dominance of fossil fuels, which still accounted for 82% of supply, the industry’s Statistical Review of World Energy report said on Monday.
Last year was marked by turmoil in the energy markets after Russia’s invasion of Ukraine, which helped to boost gas and coal prices to record levels in Europe and Asia.
The stubborn lead of oil, gas and coal products in covering most energy demand cemented itself in 2022 despite the largest ever increase in renewables capacity at a combined 266 gigawatts, with solar leading wind power growth, the report said.
France commits EUR 1 million to WTO Fisheries Funding Mechanism (WTO)
The government of France is contributing EUR 1 million (approximately CHF 969,957) to the WTO Fisheries Funding Mechanism to help developing members and least-developed country (LDC) members implement the landmark Agreement on Fisheries Subsidies adopted at the 12th Ministerial Conference in June 2022.
The funding mechanism for targeted technical assistance and capacity-building seeks to help developing and LDC members implement the Agreement on Fisheries Subsidies, as the new rules would involve adjustments to members’ legislative and administrative frameworks, transparency and notification requirements, and the enhancement of their fisheries management policies and practices. The mechanism is provided for in Article 7 of the Agreement.
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Government committed to supporting SEZs (SAnews)
Trade, Industry and Competition Deputy Minister Fikile Majola on Thursday reiterated his department’s commitment to enhancing support to Special Economic Zones (SEZs) which are important instruments for growing the economy.
Addressing the Special Economic Zones Chief Executive Officers’ Forum in Kempton Park on Thursday, he emphasised that the commitment of provincial governments was crucial in ensuring that the SEZs succeed in achieving the economic objectives that national government has set for them.
“There are currently around 15 projects that are at different stages of development across the different SEZs. Significantly, these are mostly expected to be operationalised before the close of the 2023/24 financial year, thus adding to the 190 that are already operational in the 10 designated SEZs.
“These SEZs are pillars of our economy and those that are not optimally operating are a disservice to our people,” Majola said.
Digitisation, sustainability pivotal to bolstering food & beverage industry (Engineering News)
There are various trends that are currently impacting the food and beverage (F&B) industry and digital automation and energy management company Schneider Electric has solutions that can assist to navigate this, with digital technology and sustainability highlighted as key to driving this industry forward.
This was noted during Schneider Electric’s Food and Beverage Innovation Day, held in Johannesburg, on June 21.
The first trend is around commodity prices, with these fluctuating depending on elements such as location, geopolitical tensions, where materials are sourced and inflation, besides others.
A second trend being observed is that with a new, younger generation entering the workforce, the culture of manufacturing is changing, and further, knowledge is being lost as the older generation leaves with this having not been institutionalised.
Zambia Wins More Time to Pay Its Debts (Bloomberg)
Zambia has won debt relief from its bilateral creditors, a huge breakthrough in an almost three-year saga since it became the first African country to default during the Covid-19 pandemic.
It also gives hope to other indebted nations from Ghana and Ethiopia to Sri Lanka and Pakistan.
The agreement, announced at a summit in Paris that aims to overhaul the global financial architecture to make it fairer to emerging nations, is the first major concession won by a developing country under the Group of 20 nations’ Common Framework.
Kenya’s sugar imports bill hits Sh24bn on low output (Nation)
The value of Kenya’s sugar imports hit Sh23.92 billion last year, a newly published document by the Agriculture Ministry shows, a pointer to the lucrative production investment opportunities in the domestic market. The country remains a net importer of sugar, mainly from the Common Market for Eastern and Southern Africa (Comesa), despite having the potential to produce and meet her domestic consumption and surplus for export.
“The country continues to rely on imports to bridge the deficit. For instance, in 2022, sugar valued at Sh 23.923 billion was imported. This is a drain to the country’s foreign exchange” the Agriculture Ministry said in the newly published policy document which doesn’t provide the comparative value of imports in previous years.
The industry has the potential of producing over 1.47 million tonnes of sugar which would meet the domestic demand and provide a sustained surplus for export to the Comesa region which is generally a net importing region.
“Due to industry inefficiencies, this capacity is currently underutilized,” the Agriculture ministry said.
Mozambique: Economy growing less than available natural resources – president (Macau Business)
Mozambique’s President Filipe Nyusi acknowledged on Thursday in Maputo that the country’s economy has grown below the natural resources available to it, advocating a focus on industrialisation to diversify the production base.
“We can grow more, and we should grow more,” Nyusi said, speaking at the opening speech of the 18th Annual Private Sector Conference (CASP), which brings together businesspeople, members of the government and representatives of national and international financial institutions.
The productive fabric and economic growth should reflect the quantity and quality of resources available to Mozambique, he added. In that sense, he continued, the country must focus on industrialisation, taking advantage of its agricultural, energy and water potential, as well as the logistics platform provided by its ports and road corridors.
“Mozambique today should be seen as a hub and logistics platform, not only as the gateway to the six landlocked countries of the SADC – Southern African Development Community SADC but also as the African Continental Free Trade Area, a market with around 1.3 million consumers,” he said.
Nyusi stressed that the Mozambican economy was following a path of notable growth, although far from its potential, with a Gross Domestic Product (GDP) of 4.1% by 2022.
What EAC plan to ditch dollar means for Kenya (The East African)
The East African Community (EAC) has stepped up the push for member states to adopt local currencies in trading with one another, in the latest push to drop the bullish US dollar that is hurting economies in the region.
David Ole Sankok, a Kenyan member of the East African Legislative Assembly (Eala), has tabled a resolution recommending the EAC use local currencies to boost cross-border trade.
Dr Kennedy Manyala, an economist who has worked at the EAC, says that the dollar has only been used where it can be obtained with ease.
The legislator’s recommendation to the EAC’s council of ministers and partner states adds to the push by emerging and frontier economies to dump the use of dollars in settling cross-border trade, in what is known as de-dollarisation.
Mr Sankok’s proposal echoes recent remarks by President William Ruto in address to the Djibouti Parliament urging African countries to consider settling cross-border transactions in their respective currencies instead of the dollar.
“Why is it necessary for us to buy things from Djibouti and pay in dollars? Why? There is no reason. And we are not against the US dollar, we just want to trade much more freely. Let us pay in US dollars what we are buying from the US,” said Dr Ruto.
EAC countries challenged on meeting agric targets (The New Times)
With only two years remaining until the deadline set by the East African Community (EAC) Member States to end hunger in line with the continental agricultural development plan, hunger and malnutrition are on the rise, Members of the East African Legislative Assembly (EALA) have said.
During a plenary session held in Arusha on June 21, the lawmakers expressed concern about this situation, and urged the EAC Member States to take firm action to address it.
To this end, EALA adopted the motion urging the EAC Council of Ministers and the Partner States to fast-track the implementation of the 2014 Malabo Declaration on Accelerated Agriculture Growth and Transformation of Shared Prosperity and Improved Livelihoods.
It was moved by MP Woda Jeremiah from South Sudan, who said it would help EAC “to attain food security and rational agricultural development.”
Political will needed to implement Africa free trade area (The Chronicle)
AFRICA needs the political will to collectively remove cross-border barriers and successfully implement the African Continental Free Trade Area (AfCFTA).
Implementation of the AfCFTA is the main focus of the 9th edition of the Africa Public Service Day commemorations underway in Victoria Falls under the theme: “The African Continental Free Trade Area (AfCFTA) requires a fit for purpose African Public Administration to succeed.”
Addressing delegates, the chairman of Public Service Commission in Zimbabwe Dr Vincent Hungwe said the opening up of borders and increasing mobility will assist in the cross-pollination of ideas, skills transfer and innovation which are critical to the Africa Agenda and reversing colonial educational and economic system.
He said public administration and management is going to be the foundation for creating inclusive and sustainable product and service value and supply chains that will underpin meaningful trade within the AfCFTA.
Accelerate Infrastructure Development To Promote Intra-Continental Trade, Says PMI (This Day Live)
Project Management Institute (PMI), has encouraged the African Union (AU) to accelerate infrastructure development that would promote intra-continental trade among the member states. The appeal was contained in a statement made available to the media in Lagos recently.
Highlighting the importance of infrastructure development in continental trade the Managing Director, Sub-Saharan Africa, PMI, George Asamani, stated that infrastructure is among the key elements essential to making the African Continental Free Trade Area (AfCFTA) work effectively.
Asamani said, “Developing and improving power, transport, and communications infrastructure and establishing efficient road, air, port, and rail networks are crucial for enabling seamless trade facilitation and promoting economic integration,”.
African nations call on G7 to form joint working committee to stem billions of illicit outflows (Engineering News)
African countries have called for the formation of a joint working committee with the G7, central banks and civil society to stop large sums of money being lost by the continent each year to illicit capital outflows.
The call was made on Friday at the two-day Summit for a New Global Financing Pact held in Paris, France, which started on Thursday.
It comes almost a decade after former South African President Thabo Mbeki sounded the alarm on the shocking scale at which Africa was losing-billions each year to illicit capital outflows.
Akufo-Addo said that stopping this illicit flow and bringing the money into play in the most impoverished continent could drastically reduce poverty and accelerate climate change goals. As a result, he said, African countries had called for the establishment of a committee to look into this illicit money flow.
Akufo-Addo said: We have proposed that the G7 establish a joint working committee to track and seek ways of stemming the flow of this money laundering while finding ways of ensuring that this money is reintroduced to the African fiscus.
Importance of empowering women and youth in trade highlighted at regional workshop (Namibian Economist)
The African Continental Free Trade Area – Southern Africa Development Community (AfCFTA-SADC) regional consultation workshop was recently held in Windhoek to address the challenges faced by women and youth in cross-border trade and explore opportunities in the digital economy.
During the opening of the workshop, Minister of Industrialisation and Trade, Lucia Iipumbu emphasized the importance of empowering women and youth to actively participate in trade and benefit from the African Continental Free Trade Area Agreement (AfCFTA).
“Women and youth face various challenges in trading across borders and are confronted by many barriers to trade, such as complex export procedures, intimidation, extortions, and harassment at borders, particularly in Africa. I believe the Protocol on Women and Youth in Trade should address the persistent challenges faced by women in trade and provide solutions in terms of better border governance and trade facilitation,” she said.
Experts convene to review upcoming African Women’s Report on costing SDG 5 (UNECA)
The United Nations Economic Commission for Africa (ECA) hosted an expert group meeting in Addis Ababa this week, bringing together policy specialists and academics to review its upcoming African Women’s Report on costing the Sustainable Development Goal (SDG) 5 for achieving gender equality and women’s empowerment. In 2015, countries adopted the 2030 Agenda for Sustainable Development along with its 17 goals, including SDG 5, which is considered fundamental to the overall progress on the agenda. However, the evidence presented at the meeting indicates that no country in Africa is currently on track to meet any of the goals by 2030. In addition, estimates from the African Centre for Statistics reveal that, at the current pace, gender equality and women’s empowerment in Africa will only be achieved by 2094.
Speaking at the meeting, Ms. Sweta Saxena, Chief of Staff and acting Director of the Gender, Poverty and Social Policy Division at ECA, said
that implementing measures to achieve gender equality commitments by 2030 requires countries to first understand the additional investments required and subsequently mobilise the necessary resources to finance such actions. Ms. Saxena continued: “In this report, ECA has endeavoured to demonstrate in a practical way and with examples and case studies, how to estimate the investments needed for interventions towards achieving gender equality and the empowerment of women and girls.”
The Government of Senegal, through the Ministry of the Economy, Planning and Cooperation, launched, on Thursday in Dakar, the work of the Regional Forum of West African Intergovernmental Organizations on “Promoting Regional Value chains and food security for strengthening regional integration and sustainable development in West Africa”.
The Director of the ECA/SRO-WA, Mr. Ngone Diop, stated that “the warning sign triggered in April by the Food Crisis Prevention Network (FCPN), with nearly 42.5 million people concerned by the food and nutrition crisis in the Sahel and West Africa during the hunger gap (June-August 2023), is a call out for us to take both immediate and medium- to long-term actions”.
To achieve it, continued the Director of the ECA/SRO-WA, “the ECA is recommending new financial resources mobilization and value chains development”.
According to the Resident Coordinator of the United Nations in Senegal, Mrs. Aminata Maiga, “By providing appropriate responses to these two issues, namely the promotion of value chains and food security, we will be helping to speed up the implementation of the 2030 and 2063 agendas, particularly by reducing poverty, achieving food security, promoting decent work and sustainable growth, inclusive and sustainable industrialization, and sustainable production and consumption”.
On the sidelines of the Summit for a New Global Financing Pact in Paris, African leaders, investors and development partners, including the African Development Bank Group, have highlighted their steadfast support for the Alliance for Green Infrastructure in Africa as it advances toward a first close of $500 million for green infrastructure projects in Africa.
“The Alliance will mobilize $100 million in grants for project preparation, $400 million in blended financing through grants, concessional resources, and commercial investments for project development,” Adesina said, explaining how the initiative will work.
Kenyan President William Ruto said Africa’s already low share of global energy investments had fallen sharply over the last five years. Africa’s cost of borrowing, which is eight times higher than other regions, was another challenge. “Let us have a different conversation,” Ruto said. Let us not have a conversation about us versus them, north versus south. Let us have a conversation of win-win.”
World leaders attending this week’s Summit for a New Global Financing Pact praised the African Development Bank for finding a solution that would enable rich countries to reallocate part of their Special Drawing Rights (SDR) to low-income countries through multilateral development banks. The technical solution preserves the asset reserve status of the SDRs and would unlock hundreds of billions for Africa.
Speaking at the pre-summit forum’s opening on Thursday, United Nations Secretary-General António Guterres said: “The African Development Bank has launched an initiative to channel SDRs to multilateral development banks, which would increase their impact five-fold—this initiative should be a source of inspiration.”
The French President said: “First, no country should have to choose between fighting poverty and protecting the planet. Second, each country must follow its own path because there is no single model. Third, we need to take on a public funding shock. And fourth, we need more from the private sector to mobilize a lot of money.”
Paris Summit: Commonwealth and OIF stress need for Vulnerability Index (The Commonwealth)
The Commonwealth Secretariat and the Organisation Internationale de la Francophonie (OIF) joined forces this week to convene a high-level side event during the Paris Summit for a New Global Financial Pact on June 22. The side event focused on the measures required to: ‘Take account of multidimensional vulnerability in the allocation of new development funding’.
The Paris Summit serves as a vital platform to deliberate on how to reform development financing and deliver more effective assistance to nations.
During the discussion, the panellists emphasised the urgent need for a global effort to swiftly implement new financing mechanisms for sustainable development that prioritise countries with the greatest need. These mechanisms should consider the structural vulnerabilities beyond GNI per capita.
To achieve this goal, all participants deemed it necessary to adopt a universal index reflecting various dimensions of a country’s structural vulnerability and to utilise it in the allocation of funding.
E-commerce negotiators continue to seek “landing zones” on text proposals (WTO)
“Let’s keep the momentum up”, stressed the co-conveners of the e-commerce negotiations — Japan, Australia and Singapore — at their latest meeting with WTO members participating in the negotiations from 19 to 22 June 2023. They urged negotiators to consider carefully how the initiative can achieve the objective of securing substantial results by the end of the year, using the remaining four rounds of negotiations to find common ground on various issues.
Trade Perspectives, by Xiangchen Zhang, Deputy Director-General (WTO Blog)
International trade is key to unlocking the potential of least-developed countries (LDCs) and enabling them to achieve their socio-economic development ambitions. To achieve the goals of the Doha Programme of Action for the Least Developed Countries for the Decade 2022-2031, it is also essential that LDCs increase their participation in international trade.
However, if LDCs are to reap the maximum benefits from trade — and from their membership of the World Trade Organization (WTO) — they must be more fully integrated into the multilateral trading system.
To achieve this, new ways for LDCs to engage proactively in WTO activities must be identified, and LDCs’ international partners must collaborate on LDC priorities and provide them with targeted support. A new collection of essays, titled “LDCs and the multilateral trading system”, sheds light on the current challenges facing LDCs and makes practical proposals on how LDCs can seize the opportunities provided by trade.
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SA tyre manufacturers commit to carbon net-zero by 2050 (Engineering News)
All four of South Africa‘s local tyre manufacturers have committed to achieve carbon neutrality by 2050.
Bridgestone South Africa, Continental Tyre South Africa, Goodyear South Africa, and Sumitomo Rubber South Africa – all members of the South African Tyre Manufacturers Conference (SATMC) – say they are making a collective effort to mitigate climate change.
“Climate change impacts us all and we are all demanding real action from each other,” says SATMC managing executive Nduduzo Chala.
“We are proud that SATMC and its member companies have responded to this call to take action with a range of measures aimed at reducing emissions, using energy responsibly, and cementing a circular economy to reduce and eliminate waste.”
Export: NQC promotes global awareness for goods production (Tribune Online)
The National Quality Council (NQC) is promoting stakeholder awareness of the implementation and adherence to specified standards required for the production of goods globally. This initiative aims to reduce the high rate of rejections faced by Nigeria in the international market.
Aboloma mentioned that countries like America, Europe, Asia, and some African nations that have promoted harmonized quality infrastructure are reaping the benefits with a significant influx of foreign exchange from unhindered exports.
According to a statement by Bola Fashina, the Chairman stressed that the NQC would promote industry access to affordable and globally acceptable conformity assessment services. The goal is for Nigerian-made products to be marketed under the motto: “Tested once, certified once, and accepted everywhere.”
Tunisia: Food trade deficit shrinks in May (ZAWYA)
Tunisia’s food trade deficit fell to TND 487.4 million in late May against TND 838.1 million during the same period last year, data released by the National Observatory of Agriculture (French: ONAGRI) show. This is due to higher olive oil exports (+ 29%) against a drop in grain imports (-16.3%) despite a faster growth in the imports of bran (+23.8%) and sugar (+126%).
The coverage rate of imports by exports stands at 85.6% against 76% during the first five months of 2022, knowing that Tunisia posted an 8.8% rise in the value of food exports compared to a 3.4% decline in the value of imports 4%.
Grain imports account for 54.7% of all food imports until the end of May 2023, against 63.2% during the same period last year. Purchases mainly include wheat (TND 1076 million), that is 58.3% of grain imports.
Business booms in Uganda, Rwanda border towns after controls lifted (The East African)
The business community at Katuna and Cyanika border posts in Kabale and Kisoro districts, respectively, have expressed joy after Rwandan authorities lifted travel restrictions on their nationals crossing into Uganda. The chairperson of the business community at Katuna border post, Mr Franko Korinako, yesterday said cross-border trade is now booming since the Rwandans freely cross into Uganda.
Although the Rwandan borders with Uganda were reopened in March last year after being closed for three years, Rwandan nationals were not being allowed to cross into Uganda unless they had paid Rwf5,000 Rwandan (about Ush15,000 - $4.37) each for a Covid-19 PCR test, something that many ordinary citizens could not afford. The Rwandans had also been stopped from buying household and food items from Ugandan border markets.
“The revival of cross-border trade between Uganda and Rwanda will not only boost the trade but also strengthen the social interactions that had been banned,” LC3 chairperson for Chyanika border post, Mr Erasmus Sanyu said.
EALA passes motion to expedite EAC single currency (The New Times)
The East African Legislative Assembly (EALA) on Wednesday, June 21, passed, with amendments, the motion to urge the Council of Ministers and partner states to use local currencies in all transactions in the East African Community (EAC) so as to boost regional trade.
MP Odongo George Stephen (Uganda) argued that “by passing this motion, the Assembly will have helped the EAC to boost volumes of trade and services among EAC partner states, promote and give confidence to the local community to participate in inter-country trade, and save billions charged as exchange fee by third party.”
He added that it would be a precursor of the EAC single currency in line with the EAC Monetary Union.
SADC reviews progress on implementation of initiatives enhancing Financial Inclusion in the Region (SADC)
The Southern African Development Community (SADC) Financial Inclusion Subcommittee has reviewed progress on the implementation of Financial Inclusion initiatives in the Region, including the development of the new five-year SADC Strategy on Financial Inclusion and Small to Medium Enterprises (SMEs) Access to Finance at its ordinary meeting held in Johannesburg, South Africa, from 13th to 15th June 2023.
The Draft Strategy on Financial Inclusion and SMEs Access to Finance envisages an inclusive, stable and innovative SADC financial system that empowers individuals and businesses to access and use domestic and international capital and to contribute to industrialisation, inclusive growth and resilient, and sustainable economic well-being. This vision contributes to the overarching SADC Vision 2050 for a peaceful, inclusive, competitive middle to high income industrialised Region, where all citizens enjoy sustainable economic well-being, justice and freedom.
The meeting deliberated on the Draft Financial Inclusion Gender Action Plan which provides strategic direction to Member States in realising the objectives of the SADC Strategy for Financial Inclusion and SMEs Access to Finance.
Standard Bank and PAPSS Partner to Enhance Cross-Border Payment Across Africa (BusinessGhana)
Standard Bank of South Africa Limited and The Pan African Payment and Settlement System (PAPSS) have signed a Memorandum of Understanding (MoU) to facilitate settlement of cross-border transactions of the Group, including the transactions of all their subsidiaries through PAPSS. The MoU was signed on Monday, 19 June 2023 during the opening ceremony of the 30th Afreximbank Annual Meeting (AAM) held in Accra, Ghana
PAPSS is financial market infrastructure that provides a secure and efficient channel for processing cross-border payments, ensuring speed, affordable cost, and reliability in order to facilitate intra-African trade.
By leveraging the capabilities of PAPSS, Standard Bank affiliates in more than 20 countries, will streamline and expedite the transfer of funds while ensuring transparency and compliance under the Regulators supervision. Additionally, the partnership aligns with the African Union’s vision of promoting intra-African trade and economic integration through enhanced financial connectivity. By leveraging their combined expertise, Standard Bank of South Africa and PAPSS are poised to contribute to the growth and development of the African economy.
Africa energy forum opens in Kenya (New Era)
The 25th edition of the Africa energy forum opened in the Kenyan capital of Nairobi Tuesday with delegates renewing the call for greater uptake of clean sources of energy to secure a climate-resilient future for the continent. Kenyan president William Ruto opened the forum that has gathered senior policymakers, industry executives, investors, researchers and innovators to discuss energy security in Africa.
Ruto said securing a greener, prosperous and resilient future for Africa calls for the optimal harnessing of the continent’s vast renewable energy sources like hydropower, geothermal, solar and wind. He said that by investing in cross-border energy projects, African countries will bridge the access gap that has stifled industrialization, poverty alleviation and social cohesion.
The four-day forum, held under the theme, ‘Africa for Africa’, will focus on strategic themes including scaling-up renewables uptake, breaking down barriers to green energy transition and positioning Africa as a hydrogen powerhouse.
The African Union (AU) Commission, in collaboration with the Government of the Republic of Rwanda, is convening the Second Extraordinary Session of the Conference of States Parties (CoSP) to the African Medicines Agency (AMA) Treaty from 19-20 June 2023 in Kigali, Rwanda. The effective operationalisation of AMA is envisioned to enhance the capacity of State Parties and the African Union (AU) recognised Regional Economic Communities (RECs) to regulate medical products and technologies to improve access to quality, safe and efficacious medical products on the continent.
“A more robust, harmonised drug regulatory environment, including cooperative commercial authorisation of medicines developed by African pharmaceutical companies, as envisioned by the AMA, is an integral part of a well-functioning ecosystem for health vital to health security, universal health coverage, and healthy populations... The AMA can help grow Africa into a resilient manufacturing powerhouse bringing African solutions to impeding socioeconomic challenges, which will boost the Africa Continental Free Trade Area (AfCFTA), unifying AU Member States. I encourage collective effort from all AU Member States to operationalise AMA,” noted H.E. Amb. Minata Samate Cessouma, Commissioner for Health, Humanitarian Affairs and Social Development, African Union Commission.
Least developed countries striving to embrace Fourth Industrial Revolution (UNESCO)
Growth in least developed countries in scientific publishing on cross-cutting strategic technologies such as artificial intelligence & robotics, energy, bioinformatics and materials science outpaced that of more developed countries between 2011 and 2019, according to the UNESCO Science Report (2021).
Least developed countries are embarking on the same transition to ‘green’ and digital societies as more developed countries, in order to achieve their development goals, including poverty reduction and universal access to energy and Internet. This dual transition is a vital element of their industrialization strategies but LDCs face a major challenge in keeping up with the rapid pace of technological progress.
Carry-over effects of Covid-19 worsen Africa’s debt repayment, says head of AFDB (News24)
The president of the African Development Bank Group (AFDB), Dr Akinwumi Adesina, says Africa’s external debt will, by next year, have gone up by 2.65% due to the carry-over effects of the Covid-19 pandemic. He was speaking to The Paris Club, a group of officials from key creditor countries tasked with finding coordinated and long-term solutions to debtor countries’ payment challenges.
So far, Africa’s external debt is R20.163 trillion (US$1.1 trillion), and by next year, the projection by the AFDB is R20.71 trillion.
Over the past 10 years, the structure of Africa’s debt has changed dramatically. “While bilateral debt represented 52% of total debt in 2000, this declined to 25% by 2021; commercial debt’s share of total debt increased from 17% in 2000 to 43% in 2021. “This trend was spurred by the very low global interest rates, with investors looking for yields in emerging markets,” said Adesina.
Macron hosts Chad, Gabon leaders ahead of ‘Summit for a New Global Financing Pact’ (Africanews)
French President Emmanuel Macron received, Wednesday (June 21), his counterpart from Chad, Mahamat Idriss Deby Itno for talks, on the eve of the so-called summit for a New Global financial Pact. Restructuring debt and reducing poverty by getting the UN 2030 Sustainable Development Goals targets back on course will top the agenda.
Financial leaders will participate as well as activists from around the world. All, will seek ways to overhaul the world’s development banks like the International Monetary Fund (IMF) and the World Bank and help them operate in the face of the climate crisis which has further fragilized developing nations.
Experts are expected to announce Thursday that the pledge to provide poor nations with $100 billion in aid each year to tackle global change is estimated to be met for the first time this year. First made in 2009 and reaffirmed at the 2015 Paris climate summit, the promise had never been fulfilled.
Financial system must evolve in ‘giant leap towards global justice’: Guterres (UN News)
Speaking at the Paris Finance Summit, Mr. Guterres said many African States were spending more on debt repayments than on desperately needed healthcare, and that over 50 countries were either in default or “dangerously” close to it.
The UN chief called for a debt relief mechanism that supports payment suspensions, longer lending terms and lower rates to make borrowing more affordable for poorer nations, as well as increased access to liquidity for developing countries via the International Monetary Fund’s Special Drawing Rights. Mr. Guterres also repeated his urgent call to end fossil fuel subsidies and increase climate adaptation funding for vulnerable countries.
“Taken together, these steps would help to beat poverty and hunger, uplift developing and emerging economies, and support investments in health, education and climate action,” he said, stressing that the measures would enable a “giant leap” towards global justice.
UK announces climate partnerships with Africa and the Caribbean (GOV.UK)
Speaking at the Summit for a New Global Financing Pact in Paris today (22 June), UK Minister for Development and Africa Andrew Mitchell will announce that UKEF has started discussions with 12 partner countries in Africa and the Caribbean to add Climate Resilient Debt Clauses (CRDCs) to its new and existing loan agreements.
The clauses allow governments to delay their debt repayments and free up resources to fund disaster response and recovery, with the first UK-led CRDCs expected to go live in the coming months.
Minister for Development and Africa, Andrew Mitchell, said: Developing countries face painful trade-offs between rebuilding their communities and making debt repayments in the wake of climate shocks. The partnerships with Africa and the Caribbean I’m announcing today are a milestone towards reducing these pressures, with Climate Resilient Debt Clauses providing relief for those countries hit hardest by extreme weather events. Allowing for a temporary pause in debt repayment is important because it gives affected communities the breathing space they need to focus on the urgent task at hand: recovery.
IMF Managing Director Remarks at the Summit for a New Global Financing Pact (IMF)
The Food and Agriculture Organization of the United Nations (FAO) has welcomed the approval by UN member states of a landmark legally binding agreement, under the UN Convention on the Law of the Sea, for the conservation and sustainable use of marine biological diversity in international waters, covering nearly two-thirds of world’s ocean.
FAO is set to support its Members in implementing the accord, often referred to as the “High Seas Treaty”, on safeguarding Marine Biodiversity of Areas Beyond National Jurisdiction (BBNJ), which has been under discussion for nearly two decades and was approved at an intergovernmental conference in New York on 19 June after 5 negotiating sessions.
Annual Renewable Power Must Triple by 2030 (IRENA)
In the first volume of the World Energy Transitions Outlook (WETO) 2023 released today, the International Renewable Energy Agency (IRENA) identifies the way forward to immediately course correct the 1.5°C climate pathway. The report calls for raised global ambition in renewables deployment, enabled by physical infrastructure, policy, and regulations, and underlining institutional and workforce capabilities.
The WETO 2023: 1.5°C Pathway positions electrification and efficiency as key transition drivers, enabled by renewable energy, clean hydrogen, and sustainable biomass and tracks implementation across all energy sectors. According to the latest edition, some progress has been made, mainly in the power sector with record additions in global renewable capacity of 300 gigawatt (GW) in 2022. However, the gap between what has been achieved and what is required continues to grow.
More ambitious renewable energy targets are needed; the world must add an average of 1,000 GW of renewable power capacity annually by 2030, as well as significantly increase the direct use of renewables in end-use sectors. With the first Global Stocktake concluding at COP28 in the UAE, WETO provides much-needed clarity on priority actions in the coming years.
The State of Commodity Dependence 2023 (UNCTAD)
A country is dependent on the export of commodities (or “commodity-dependent”) when its merchandise exports are heavily concentrated on primary commodities. The source of commodity dependence can be linked to a country’s persistent or structural conditions, such as its resource endowment and factor composition, institutional framework, geographic situation, history among other factors.
It is important to monitor and analyse the evolution of commodity dependence, as this dependence has been found to have negative implications, in different ways, for a country’s welfare and development.
First members to formally accept Fisheries Subsidies Agreement urge others to follow suit (WTO)
“The Agreement is a tangible leap forward in the race to preserve our ocean and its precious living resources. However, the Agreement’s benefits will take hold only when WTO members implement its provisions,” Deputy Director-General Angela Ellard said in her opening remarks, noting that formal acceptances from two-thirds of all 164 WTO members need to be secured for the Agreement to enter into force.
“We are aiming to secure this agreement’s entry into force by the 13th Ministerial Conference next February in Abu Dhabi. This urgency is for the sake of ocean sustainability, which is an important matter for all WTO members. Indeed, all of our members depend on a sustainable source of fish and on a healthy ocean ecosystem, whether they boast a long coast or whether they are landlocked,” DDG Ellard said. “The good news is that we have received 10 instruments of acceptance and therefore are about one-third of the way there.”
DDG Zhang calls on least developed countries to “strategize on their trade priorities” (WTO)
“We are well aware that LDCs’ participation in global trade remains below 1 per cent,” the Chair of the Sub-Committee on LDCs Ambassador Erik Brøgger Rasmussen (Denmark) stressed. “It is our shared responsibility to map out what more the international community can achieve to support a greater integration of LDCs into the multilateral trading system. An evolving trading landscape opens new horizons, offers new trade opportunities and brings new hope for people living in LDCs and beyond,” he said.
DG Okonjo-Iweala to business leaders: We must push for re-globalization and reform (WTO)
Rising geopolitical tensions and the constant crises of recent years — the COVID-19 pandemic, the war in Ukraine, climate shocks and the resulting disruptions to trade — have sparked questions about whether the multilateral trading system still works, the Director-General told the gathered business leaders.
“My answer is: Yes, the system works. Yes, parts of it need to be fixed. We need to fix what needs fixing. We don’t need to throw the baby out with the bathwater,” she said. “The WTO has made things better for business,” the Director-General said, citing the Information Technology Agreement eliminating tariffs on almost USD 3 trillion worth of trade, the Government Procurement Agreement opening up more than USD 1.7 trillion in annual public contracts to competition from firms in participating members, and the Trade Facilitation Agreement cutting red tape and making it cheaper and faster to move goods across borders.
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R4.5 Billion Investment Represents a Change in Minerals Beneficiation (Department of Trade, Industry and Competition)
The Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina says the R4.5 billion investment by Nyanza Light Metals and East China Engineering Science and Technology represents an opportunity that South Africa and native Africans can change the resource curse that Africa has been known for, which is being the net exporter of raw materials from gold, diamond, platinum, iron ore and many miners endowment, including titanium.
According to Gina the minerals endowments the continent has, must be beneficiated in Africa and be exported as value added goods. She said Nyanza Light Metals represents that desirable direction of downstream beneficiation efforts.
Survey reveals alarming trends in the SME road freight sector (Engineering News)
Sixty-eight per cent of small and medium-sized road-freight companies have inadequate vehicle maintenance programmes. This neglect of proper maintenance increases the risk of mechanical failures, leading to accidents and disruptions in supply chains.
This was one of the findings of an online survey conducted by JC Auditors (JCA) within South Africa‘s small and medium-sized enterprise (SME) road-freight sector.
“It also has a significant economic impact, especially when considering that the last Road Traffic Management Corporation report indicated the cost of crashes to be R142-billion, or 3.4% of gross domestic product.”
MPs demand scrapping exemption on imported crude palm oil (Tanzania Daily News)
Minister for Finance and Planning, Dr Mwigulu Nchemba has dropped a hint on plans for East African Community Common External Tariff (EAC CET) on scrapping of imported crude palm oil tariff. He said in the National Assembly on Tuesday that the government has heard members of Parliament’s concerns over plans to exempt CET for imported crude palm oil.
Presenting government’s budget in the House last week, Minister Nchemba announced that the government planned to revert back to EAC CET rate of 0 per cent, instead of 25 per cent on Crude Palm Oil (CPO) to protect consumers’ welfare against skyrocketing prices henceforth enhance economic growth.
Members of Parliament expressed concerns over the plan, saying that will discourage sunflower farmers who had bumper harvest this year.
EAC still top destination for Uganda’s exports (Monitor)
The East African Community was top destination for Uganda’s exports in April 2023, accounting for 39.3 percent of the total market share.
In the performance of the economy report for May 2023, the Ministry of Finance noted Kenya, Congo and South Sudan were the top three destinations of Uganda’s exports to EAC, taking up 35.7 percent, 25 percent and 21.3 percent, respectively.
“Some of the top earning export commodities to Kenya during the month were animal products particularly day old chicks, milk, maize, fermented black tea and sugar,” the report said.
“Increase in exports of mineral products follows the resumption of gold exportation that was on a halt the previous financial year,” the report reads in part, noting, that merchandise export receipts, however, declined to $538.8m (Shs2 trillion) from $681m (Shs2.5 trillion) in March, representing a 20.9 percent decline due to lower receipts from exports of coffee, mineral products and maize.
Egypt’s trade deficit halved in March as wheat imports drop 42% (Ahram Online)
The trade deficit dropped to $1.9 billion in March 2023, compared to $3.8 billion in the same month a year earlier, according to data released by the Central Agency for Public Mobilisation and Statistics (CAPMAS).
CAPMAS said that the decline happened in spite of a 34.6 percent shrinkage in exports, which declined to $3.75 billion in March, down from $5.7 billion a year earlier. During March 2023, Egypt’s exports of natural gas, fertilizers and crude oil plummeted by 67.9 percent, 54 percent, and 50.5 percent on a yearly basis, respectively. Ready-made clothes exports decreased by 25.3 percent in the same period.
However, exports of fresh fruits inched up 0.7 percent annually in March, while exports of bakeries and prepared foods soared 23.2 percent.
Senegal’s economic growth slowed in 2022, against a backdrop of rising world commodity prices, says the World Bank in its 2023 Senegal Economic Update.A decline in private investment and exports, as well as a contraction in the agricultural sector and industrial production, are at the root of this slowdown. The result is a deceleration in real GDP growth in 2022 of 4.2%, after a strong recovery post COVID 19 in 2021 at 6.5%.
“The country’s growth remains resilient despite multiple crises, and the macroeconomic outlook is favorable. However, this growth needs to be more inclusive, given the inflation that has accentuated poverty in 2022”, said Keiko Miwa, World Bank Country Director for Cabo Verde, Gambia, Guinea-Bissau, Mauritania, and Senegal.
Eswatini to Host the 8th SACU Summit (SACU)
His Majesty King Mswati III of the Kingdom of Eswatini and Chairperson of the SACU Summit will be hosting the 8th SACU Summit of Heads of State or Government on the 29th June 2023, in Ezulwini, Eswatini.
The SACU Summit will be attended by the Heads of State or Government and representatives of SACU Member States being the Kingdom of Eswatini, the host; the Republic of Botswana; the Kingdom of Lesotho; the Republic of Namibia; and the Republic of South Africa.
The 8th Summit will consider progress being made on the implementation of the SACU Strategic Plan.
Professor Ricard Hauman Professor Ricardo Hausmann, Founder and Director of Harvard’s University Growth Lab will present to the Summit on the theme ”SACU Industrialisation Opportunities through Improving Economic Complexity.”
Regional MPs tell EAC leaders to lower flight costs (The New Times)
The cost of air travel within the East African Community (EAC) region is still very high, making flying more of a preserve for those who are relatively well-off, the regional parliament has concluded. It urged the EAC Member State leaders to lower these costs to make travel affordable for citizens.
The East African Legislative Assembly (EALA) made the recommendation on June 20, in Arusha, as it adopted the report of its Committee on Communication, Trade, and Investment on the assessment of the Civil Aviation Safety and Security Oversight Agency (CASSOA)’s performance.
How sub-Saharan Africa can scale trade finance amid hard currency challenges (Businessamlive)
Sub-Saharan economies have for a long time been plagued by foreign exchange shortages, especially against the US dollar, fanning inflationary pressures across the continent as import prices continue to surge. This has left many policymakers across the continent with difficult choices on how to overcome foreign currency liquidity challenges, promote trade finance, and foster sustainable economic growth in the region.
According to industry experts, currencies play a major impact on how trade is conducted across borders globally and Changes in currency exchange rates affect international trade by increasing or decreasing exports and imports.
Gerald Ndosi, head of trade coverage at Bank One, a Mauritius-based full service commercial bank, noted that commodity dependence can affect the volume of dollars available in African markets, as many countries in SSA heavily rely on commodity exports, such as crude oil, minerals, and agricultural products.
“Fluctuations in commodity prices, which are often denominated in US dollars, can lead to revenue volatility, and affect the availability of US dollars in the local markets,” he added.
Developing value chains in West Africa to take advantage of the AfCFTA (UNECA)
The Government of Senegal, through the Ministry of Trade, of Consumer and Small and Medium-Sized Enterprises, have launched the Expert work Group Meeting in Dakar on Tuesday for examining the Report of the Study on “The Opportunities of Regional Value Chains in West Africa in the context of the African Continental Free Trade Area (AfCFTA )”.
The Director of ECA/SRO-WA, Ngone Diop affirmed that the multifaceted crises such as the Covid19 pandemic, the war in Ukraine and the climate crisis have slowed down or even annihilated the development efforts of the countries in the West African sub-region as shown by the deceleration of economic growth estimated to an average of -2% in 2020, compared to 3.4% in 2019”.
“In response to these worrisome trends, the positioning of West African economies in value chains, through tariff and non-tariff disarmament, should be an integral part of a more comprehensive approach to the integration of production and trade sectors in the AfCFTA,” explained Ngone Diop.
However, continued the Director of BSR-WA/CEA, “It is necessary to identify and prioritize regional value chains capable of positioning the region as a production and a preferred trade center, competitive within the “single African market”.
Afreximbank champions more intra-African trade at 2023 Annual Meetings opening (Ghana News Agency)
The 2023 Annual General Meetings of the African Export-Import Bank (Afreximbank) opened in Accra on Sunday, with speakers urging Governments to increase efforts to boost intra-African trade and regional integration. That, the speakers said, would contribute to Africa’s recovery process, engender stable economic growth, create employment for its citizens, and reduce poverty on the continent.
Dr Ernest Yedu Addison, Governor of the Bank of Ghana told the gathering that the time had come to reflect on how the continent could meaningfully contribute to Africa’s recovery process after the pandemic. He stressed the need for economies to speed up intra-African trade and improve Africa’s trade performance in the global marketplace through the creation of a single market for goods and services. Dr Addison said Africa must also promote industrial development through diversification and regional value chain development and the Continent.
Mohamed Ahmed Maait, Minister of Finance of Egypt and Chairman of the Afreximbank Annual Meetings, who was represented by Gamal Negm, Deputy Governor of the Central Bank of Egypt, asked Africans to work collaboratively towards finding integrated solutions to the new challenges confronting the continent.
“If trade barriers were eliminated but there was no trade finance, all the efforts would come to nothing. At the same time, if trade finance was available but trade barriers persisted and prevented trade, then all the efforts would still have been wasted,” said Wamkele Mene, Secretary-General of the AfCFTA Secretariat.
Afreximbank launches Africa Trade Gateway, a single window for digital services (Afreximbank)
The African Export-Import Bank (Afreximbank) yesterday in Accra launched the Africa Trade Gateway (ATG), a suite of five digital platforms that have been designed as a single window to enable the Bank better deliver on its mandate by providing critical services to support and promote African trade and the implementation of the African Continental Free Trade Agreement (AfCFTA).
Launched by Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade Bank, of Afreximbank on the sidelines of the ongoing 30th Afreximbank Annual Meetings (AAM2023), the gateway digital ecosystem comprises the MANSA due diligence platform, the Pan-African Payment and Settlement System (PAPSS), the TRADAR Club, the Africa Trade Exchange (ATEX) and ATG Connect.
Addressing guests at the launch, Mrs. Awani said that Afreximbank’s digital evolution was part of its deliberate strategic response to address Africa’s key challenges to accelerate the pace of development and foster economic prosperity for Africans using and applying digital technologies and business models.
Global development financiers attending this year’s Organisation of Petroleum Exporting Countries (OPEC) Fund’s forum in Vienna, Austria, have pledged a strong commitment to remodel their investments to support green projects at scale.
African Development Bank Group president Akinwumi Adesina called for new ways of project preparation and de-risking of projects to mobilise private sector investment at scale for sustainable development.
“We’ve got where the private sector is. We’ve got US$ 145 trillion of assets under management (and) by 2026 it’s going to be there… but the issue here is that we need new ways of aggregation to prepare the projects, to de-risk the projects and lower the transaction cost for those deploying capital,” Adesina reiterated.
“It [the Africa Investment Forum] has become today the premier investment platform to do anything on investment in Africa, and in the last four years, we have been able to leverage about US$ 142 billion of investment interest into energy, water and sanitation, infrastructure, and transport corridors,” Adesina said.
He added that the African Development Bank and its partners are also creating opportunities for the private sector to invest in agriculture through special agro-industrial processing zones, which are being established across the continent.
Annual clean energy investments in emerging and developing economies will need to more than triple from USD 770 billion in 2022 to as much as USD 2.8 trillion by the early 2030s to meet rising energy needs and align with the climate goals set out in the Paris Agreement, according to a new report released today by the International Energy Agency (IEA) and International Finance Corporation (IFC).
The report, Scaling Up Private Finance for Clean Energy in Emerging and Developing Economies, shows that public investments alone would be insufficient to deliver universal access to energy and tackle climate change. Increased public funding can be used most effectively in partnership with private sector capital to reduce project risks – a concept known broadly as blended finance. According to the report, two-thirds of the finance for clean energy projects in emerging and developing economies (outside China) will need to come from the private sector. Today’s USD 135 billion in annual private financing for clean energy in these economies will need to rise to as much as USD 1.1 trillion a year within the next decade.
Climate Finance: Developed countries ready to fulfil $100 billion pledge by year end (Premium Times Nigeria)
As France prepares to host world leaders at a global financial summit seeking to reconfigure global financial systems, sources in the French government say developed countries will be able to, by year end, deliver on the $100 billion climate financing pledge of 2020.
The financial summit hosted by France seeks to establish a system that will be more responsive, just and inclusive. A system that will fight inequalities, finance the climate transition, biodiversity protection, and move closer to achieving the United Nations Sustainable Development Goals (SDGs).
The OECD in its most recent analysis (2022) put the figure mobilised by developed countries in 2020 at $83.3 billion for climate finance. This is realised from a range of sources including bilateral public, multilateral public, export credit and the private sector.
The president of the African Development Bank Group (AfDB), Akinwumi Adesina, in May, hinted that Africa will need $2.7 trillion to upscale climate change adaptation by 2030. Mr Adesina made this known at the AfDB annual meeting themed: “Mobilising private sector financing for climate and green growth in Africa,” held in Sharm El Sheikh, Egypt. “Africa is being shortchanged by climate finance. Africa is choking. Africa will need $2.7 trillion by 2030 to finance its climate change needs,” Mr Adesina said. Despite being the world’s lowest emitter of greenhouse gases, Africa is one of the worst hit by climate change in the world.
List of 32 African countries to benefit from the UK’s new trade scheme (Business Insider Africa)
According to the UK’s government official website, the scheme dubbed, The Developing Countries Trading Scheme (DCTS) entered into force on 19 June 2023 and replaced the UK’s Generalised Scheme of Preferences (GSP). The DCTS is a simpler and more generous preferential trading scheme that has been designed to boost trade with developing countries in order to support their development.
Nigel Huddleston, UK’s Minister of International Trade, unveiled the program during a trip to Bole Lemi, Ethiopia’s largest industrial business park.
“It will create opportunities for businesses around the world, supporting livelihoods, creating jobs, and diversifying local and international supply chains. It will also benefit UK businesses and consumers by lowering import costs on a whole range of products,” Huddleston said.
The DCTS applies to 65 countries that fall under one of the following categories, least-developed countries (LDCs) as defined by the United Nations low-income and lower-middle-income countries as defined by the World Bank. Below are the African countries set to benefit from this scheme:
Brexit boost for UK after court refuses attempt to wreck Morocco trade deal (Express.co.uk)
Former cabinet minister Ranil Jayawardena has hailed an Appeal Court ruling which has confirmed that UK trade deals can no longer be interfered with by international organisations post Brexit. The challenge had been brought because of an attempt by separatists to breakaway from Morocco and the ruling in effect also confirmed the integrity of the north African nation’s borders.
The court ruling last month, dismissed a challenge by an international NGO, The Western Sahara Campaign (WSCUK) to the invalidate the Association Agreement between Morocco and the United Kingdom which has boosted trade between the two countries by 50 percent since 2021.
However, importantly, it confirmed that trade deals are a matter between two sovereign states and cannot be interfered with by international organisations post Brexit.
Global trade growth returns but outlook for 2023 is poor (UNCTAD)
During the first quarter of 2023, trade growth was positive for both goods and services, according to UNCTAD’s latest Global Trade Update published on 21 June. After the downturn in the second half of 2022, world merchandise trade rebounded in both volume and value.
Over the first three months of 2023, trade in goods went up by 1.9% from the last quarter of 2022, adding about $100 billion. Global services trade also increased by about $50 billion, up by about 2.8% compared to the previous quarter.
For the second quarter of 2023, the UNCTAD nowcast suggests a slowdown in global trade growth, pointing to recently downgraded world economic forecasts and factors such as persistent inflation, financial vulnerabilities, the war in Ukraine and geopolitical tensions.
“Overall, the outlook for global trade in the second half of 2023 is pessimistic, as negative factors dominate the positive,” the report says.
Trade and Development Board, seventieth session: High-level segment (UNCTAD)
Statement by Rebeca Grynspan, Secretary-General of UNCTAD
Around 3 billion people, or 40 per cent of our global population, reside near coastlines. Our oceans are treasure troves of assets such as fisheries, shipping lanes, tourism that are estimated to be worth at least $24 trillion. According to UNCTAD, the value of global exports in ocean-based goods and services was $1.3 trillion in 2020, which represents about 6 per cent of global trade that year. The blue economy is therefore an important part of any development strategy.
But, as we convene today, we must recognize the plight that climate change poses to the blue economy, affecting food production, increasing natural disasters, decreasing fisheries productivity, and causing ocean acidification, among other challenges. The brunt of these effects is borne by countries and communities that have historically contributed minimally to greenhouse emissions and are under-equipped for adaptation. This is where climate justice takes center stage.
But we must be in this together. We must act with speed to make the blue economy resilient to climate change, but we must be aware of the unforeseen and differentiated impacts that our policies can have on the most vulnerable countries. We need to ensure the most vulnerable have access to the right technologies, resources, and capacities, not doing so will endanger the livelihood of 150 million people who depend on the ocean for sustenance, but also millions more engaged in carbon-intensive export sectors who might suffer from market-access obstacles.
This is why trade is so important. Trade can bolster technology transfer and provide access to environmental goods and services, which are essential to the low carbon transition.
last April, UNCTAD launched the Trade and Environment Review 2023, calling for a “Blue Deal” to increase investment in sustainable ocean-based goods and services, and to ensure that action is global, fair, and multilateral.
we also see immense potential in South-South Trade initiatives such as the Global System of Trade Preferences among developing countries (GSTP) for creating low-carbon markets and building resilient value chains.
Ukraine war: Guterres calls for continuation of ‘vital’ food and fertilizer agreement (UN News)
Russia confirmed that for 60 days it would continue to be a part of the Initiative and the complementary Memorandum of Understanding on food and fertilizer exports from Moscow, in late May – but the deal in effect expires on 17 July.
UN chief António Guterres said in a statement issued by his Spokesperson that food exports via the Black Sea have fallen from a peak of 4.2 million metric tonnes in October last year to just 1.3 million tonnes last month, the lowest volume since it came into operation. Mr. Guterres called on the parties to “accelerate operations and urges them to do their utmost to ensure the continuation of this vital agreement”.
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Mpumalanga Businesspeople Confident African Continental Free Trade Agreement will Improve Ease of Doing Business (Department of Trade, Industry and Competition)
The Mpumalanga businesspeople who attended the African Continental Free Trade Agreement (AfCFTA) awareness workshop in Mbombela last Thursday are confident that the agreement will provide them with export opportunities across the continent and improve the ease of doing business to address the challenges in order to enable them to trade effectively.
According to the President of National African Farmers Union in Mpumalanga, Mr Jabu Mahlangu, one of the biggest challenges that farmers are faced with is at the Lebombo border post where there is an estimated 1 500 trucks per day crossing to and from South Africa. He said there is a system blockage at the border.
“Some of our members export fresh produce that cannot be kept in trucks at the border for the whole day. The cost of keeping the machinery operational at the border gate is extremely high. We are therefore urging the South African officials to urgently deal with the border post challenges. We also recommend that there should be clearance away from the border post for bigger trucks that are clogging the system. This can fast-track crossing the border. We are confident that the workshop today did not only share opportunities but will look into the challenges we are facing. We want effortless and seamless movement of goods and people between South Africa and Mozambique so that our produce can find their way to the hotels and restaurants there on time and in good condition,” said Mahlangu.
Agriculture Master Plan still doable but needs adjusting (Engineering News)
Agricultural Business Chamber of South Africa chief economist Wandile Sihlobo has asserted that the implementation of the Agriculture and Agroprocessing Master Plan (AAMP) is still doable. However, it needs to be adjusted and treated as a recovery plan.
Speaking during a webinar on June 20, he noted that many of the issues addressed in the AAMP had become much more complex over the last year and that South Africa would need to adapt it to the current context.
During the webinar – which is part of a series called ‘Think Big’, hosted by financial investment consulting firm PSG and facilitated by journalist Alishia Seckam, which examines some of the most pressing issues impacting South Africa‘s economic development – Sihlobo reflected on whether the master plan was still fit for purpose given the heightened level of local and global challenges in the operating environment.
India is our second largest BRICS trading partner - South Africa (IOL)
INDIA is South Africa’s second largest trading partner within the BRICS (Brazil, Russia, India, China and South Africa) grouping.
In 2022, China accounted for 9.4% of South Africa’s exports, while India had less than half that at 4.5%, according to the South African Revenue Service (Sars). China dominated South Africa’s imports with a 20.2% share while India’s share was around a third of that at 7.2%.
In rand terms, exports to China totalled R188.4 billion, while exports to India were R90.1bn. South Africa imported R367.4bn from China and R130.6bn from India, resulting in a trade surplus in favour of China worth R179bn and in favour of India of R40.5bn.
In 2010, South Africa still enjoyed a trade surplus with India of R1.4bn as trade with India was only starting to expand. In 2010, South Africa only exported R22.1bn to India resulting in a 3.3% share, while imports from India were R20.8bn for a 3.4% share.
What has changed is that imports from India have seen a switch to higher value added vehicle imports.
Eswatini: a new Eco-green City planned with the support of the African Development Bank’s UMDF (AfDB)
The African Development Bank’s Urban and Municipal Development Fund is partnering with the Eswatini Water and Agriculture Development Enterprise on a new urban planning project, closely linked with the development of a transformative agro-industrial hub which will boost economic activities and to attract tens of thousands of workers.
The Fund approved a grant of $400,000 to the “Eswatini New Eco-Green City Masterplan” on 8 June this year. The grant will support the planning of a new urban area in the Shiselweni region of the country, where population and economic activities are expected to grow quickly over the next few years.
The project includes the setting up of a special agro-processing zone, to be undertaken by the Eswatini Water and Agriculture Development Enterprise (ESWADE), as a public-private partnership. The project will generate approximately 100, 000 jobs for workers, creating the need for housing, health and education services for workers and their families.
One hurdle will be to accommodate the influx of workers stimulated by the growth of the agro-industrial complex. A well-planned new eco-city is expected to provide high quality services for the population, stimulate economic diversification, create sustainable employment and reduce poverty in the area, while safeguarding the environment.
“Climate adaptation and mitigation approaches and solutions will be at the center of the urban planning, solutions and sector investment development,” Stated Marcus Mayr, UMDF coordinator, who presented the project during the Oversight Committee.
Over the course of 2022, Gabon’s economy has benefited from high oil prices. However, the rise in global energy prices has also led to high fiscal cost which is affecting social spending for the most vulnerable and impacting the environment. Released today, the latest edition of Gabon Economic Update highlights the importance of implementing adequate reforms to limit the economic, environmental, and social costs of fuel subsidies, while strengthening social protection programs to support the most vulnerable and improving fiscal sustainability.
Gabon’s economic recovery picked up, reaching 3.1% in 2022. The country’s trade balance and its public finances have benefited from high commodity prices and a good performance of commodity exports such as oil, timber and manganese. As a result, Gabon recorded its strongest budgetary surplus in 2022 since the 2014 oil price shocks.
However, combined with the impact of the Russian invasion of Ukraine, the prolonged effects of the COVID-19 pandemic on global supply chains have pushed up global food and energy prices. As the Gabonese population, particularly the most vulnerable, was increasingly affected by inflationary pressures, the Government increased spending on fuel and food subsidies to contain the rising cost of living.
African Trade Report 2023: Export Manufacturing and Regional Value Chains in Africa under a New World Order (Afreximbank)
The African Export-Import Bank’s 2023 edition of the African Trade Report (2023ATR) examines trade and economic developments in Africa and other parts of the world during 2022, a period during which the world economy witnessed a sharp synchronised global deceleration on account of a confluence of overlapping global crises including the lingering effects of COVID-19, particularly in China, where the country’s “Zero COVID” policy led to a sharp reduction in output; heightening geopolitical tensions stoked by Ukraine crisis; increasing risk of fragmentation exacerbated by geopolitical tensions; and the persistence of trade wars among others. Global GDP expanded by a mere 3.4 percent – down from 6.3 percent posted in 2021. Additionally, disruption in global supply chains has been exacerbated by the ongoing Ukraine crisis, while record high inflation and tightening global financial conditions have increased the risk of debt crises, especially in low income and developing market economies that have limited options for refinancing – these fallouts amplify the challenges of globalization where trade is dominated by manufactured products.
Southern Africa youth consultative workshop on AfCFTA set for Windhoek (Namibia Economist)
The Ministry of Industrialisation and Trade (MIT) in collaboration with the Ministry of Sport, Youth and National Service and the National Youth Council will host a two-day Southern Africa Youth Consultative Workshop on the Africa Continental Free Trade Area Agreement (AfCFTA) Protocol on Women and Youth in Trade, from 22 to 23 June.
In partnership with the AfCFTA Continental Secretariat, Youth for Tax Justice Network Africa, and with the support of the United Nations Development Programme and European Union Delegation to Namibia, the Consultative Meeting will bring together young people and women in business, Government officials, and youth leaders across the SADC region to, among others, galvanise action and mainstream youth voices towards a common voice on the AfCFTA Protocol on Women and Youth in Trade and foster a deeper awareness of challenges faced by young entrepreneurs, producers, and traders across the region.
The outcome and recommendations derived from the workshop will culminate into a Report containing strong policy and programme recommendations that will inform the design of national policies and complementary measures to address and remove systematic barriers so that women and youth share in the gains of the AfCFTA Agreement.
Disruptions push Africa to the back of the queue (fDi Intelligence)
The African Continental Free Trade Area (AfCFTA) has long been celebrated for its potential to create the world’s most populated economic bloc.
Secretary-general Wamkele Mene believes the recent disruption in global value chains has once again pushed Africa to “the back of the queue”, strengthening the case for the development of more intertwined and resilient African value chains.
Q: How does the AfCFTA fit the global push for nearshoring? A: The events that unfolded from the Covid-19 pandemic are good examples of the urgency facing the AfCFTA. During the pandemic, global supply chains were disrupted. Individual countries imposed export restrictions on the critical tools that were required to fight the pandemic, at least in the first six to nine months. That pushed Africa to the back of the queue for things like vaccines, antiseptics and masks, because we are so reliant on these global supply chains and Africa’s productive capacities are very low.
Then the war in Ukraine happened. Last year, I visited an African company that manufactures car seats, and they told me they had to suspend production for months because they couldn’t get the wiring harness produced in Ukraine that they required. But that wiring harness is produced with copper that comes from Zambia, and then gets sent back to Lesotho for the production of the cast. These are clear examples that when global supply chains are disrupted, Africa suffers. People lost jobs in Lesotho because for three to four months there was no production.
What this reinforces is that SEZs are absolutely essential for Africa to be able to establish an alternative and more resilient supply chain without disengaging completely from global supply chains. Otherwise, we will be forever at the mercy of global supply chains. And when there’s disruption, we will forever be at the back of the queue.We have to develop self-sufficiency and the productive capacity in priority areas. SEZs are an essential part of creating that local productive capacity.
The 46th Ordinary Session of the Permanent Representatives’ Committee (PRC) begins (African Union)
The 46th Ordinary Session of the Permanent Representatives’ Committee (PRC) kicked off on 19 June 2023, in preparation for the 43rd Ordinary Session of the Executive Council and the 5th Mid-Year Coordination Meeting between the African Union, The Regional Economic Communities and the Regional Mechanisms to be held from the 13-16 July 2023.
Speaking on activities carried out under the theme of the year 2023, the Deputy Chairperson underscored the need to enrich the report submitted to the consideration of the PRC. “The report on the activities carried out under the theme of the year 2023 will certainly be a source of inspiration to appreciate and enrich the policy brief and the roadmap for the theme of the year 2024 devoted to education,” emphasized Dr. Monique Nsanzabaganwa.
The Deputy Chairperson of the AU Commission, concluded her statement by encouraging the members of PRC to conduct a critical reflection in order to improving the operational performance of the continental organization. “The African Continental Free Trade Area confirms and strengthens its first steps in the deployment of its action plan. The report concerning it, submitted for your consideration, I am sure, will provoke your desire to see it grow at an accelerated rate to achieve the objectives assigned to it in the well-understood interest of the affirmation of the commercial presence of the Africa on the international stage,” said Dr. Monique Nsanzabaganwa.
EAC coffee, avocado exports grow amid Covid-19 hiccups (Tanzania Daily News)
Export of coffee and avocados from the East African Community (EAC) to the Europe Union (EU) have grown by 35 percent and 7 percent respectively from 2018 and 2022. A report provided by the EU-EAC Market Access Upgrade Programme (MARKUP), a development initiative started to grow EAC’s agri-export trade, indicates that export of the two commodities also blossomed within the region in the four years of the program.
“The (EAC) region was not spared the far-reaching effects of the COVID- 19 pandemic. Despite these challenges, great milestones on exports of agri-based products, including MARKUP priority value chains, were recorded,” the report reads in part.
MARKUP is a regional development initiative of the EAC and the EU that provides support to small and medium-sized enterprises (SMEs) in the EAC.
Speaking during the launch, EAC Acting Director of Trade Flavia Busingye, said MARKUP had created numerous trade opportunities for agri-SMEs in the region. “The campaign “MARKUP: Growing agri export markets” aims to raise awareness of the opportunities in agricultural trade, and to demonstrate that international markets are within reach of East African exporters,” she explained. The EAC official noted that since its inception in 2018, MARKUP has generated useful resources for growth of agri-exports in the five EAC countries.
DP World in Talks to Expand East African Coverage to Tanzania (BNN Bloomberg)
Container terminal giant DP World Ltd. is in talks with Tanzania to manage seven berths at the East African nation’s main port of Dar es Salaam. If successful, the negotiations will expand the the Dubai-based company’s reach on the east African coast, where it already has interests in nations including in Somalia, Eritrea, Djibouti and Mozambique.
Tanzania wants to improve efficiency at the port and upgrade its transport infrastructure in a bid to become a regional trade and logistics hub, Works and Transport Minister Makame Mbarawa told reporters in Dar es Salaam.
Its main rival is Kenya’s Mombasa port to the north and they compete for business from African states such as Democratic Republic of the Congo, Rwanda, Uganda and Burundi. Dar es Salaam also serves as a gateway for Zambia, Malawi and Zimbabwe.
Fresh investment from DP World will help reduce congestion and slash the average stay for a vessel to 24 hours from five days, and speed up clearing times to 60 minutes from 12 hours, Mbarawa said.
National Sensitization Programmes on the Single African Air Transport Market Underway (COMESA)
COMESA has kicked-off a series of workshops to create awareness about the Single African Air Transport Market (SAATM), which provides for the full liberalisation of intra-African air transport services in terms of market access, traffic rights for scheduled and freight air services by eligible airlines thereby improving air services connectivity and air carrier efficiencies.
The first workshop took place in Mogadishu, Somalia, 18 – 19 June 202, organized by COMESA under the programme on Support to Air Transport Sector Development (SATSD) in Eastern Africa, Southern Africa and the Indian Ocean Region (EA-SA-IO). Malawi, Seychelles and Burundi are next.
In her statement, COMESA Secretary General Chileshe Mpundu Kapwepwe observed that while many air transport markets outside of Africa have been liberalized to a significant extent, most intra-African air transport markets remain largely closed.
“This has affected air connectivity within Africa as air travel costs remain prohibitive and continued to limit the potential for economic growth and development in our region,’’ she noted in a statement presented by Mr. Francis Okome, Air Transport Policy & Regulatory Expert under the SATSD project.
Inside African Union drive to manufacture vaccines (The Independent Uganda)
Ramping up its vaccine and pharmaceutical manufacturing is probably one of the most audacious goals set by the African Union recently and players in the sector say manufacturing can move from the current 1% of local production to about 60% by 2040 In fact, the African Union has a new public health order which also seeks to increase the manufacturing of therapeutics and diagnostics as one of the continent’s pillars to ensure health security for its 1.4 billion people.
“Our ambition is to progressively increase the share of vaccines manufactured within the continent from 1% to 60% by 2040,” Yared Yiegezu Zegiorgis, a Senior Research Data Analyst at the Addis Ababa-based Africa Centres for Disease Control and Prevention (Africa CDC) recently told delegates who met in Uganda to discuss the state of vaccine and pharmaceutical production in Africa.
The AU has already set up and mandated the Partnerships for African Vaccine Manufacturing (PAVM) to develop a framework for action to execute this plan.
According to Zegiorgis, the PAVM framework, which was launched in 2021, is on a multi-stage journey to realize the AU’s new public health order with the current focus being “strategy implementation.”
In an effort to enhance foreign investments, tourism and provide easier access to abundant opportunities within the ECOWAS region, the Authority of ECOWAS Head of State and Government adopted in 2011 the introduction of ECOVISA, a single visa system similar to the Schengen model. The ECOWAS Commission has been tasked with working towards the realization of this visa for Migrants of third countries.
On May 25, 2023, the Directorate of Free Movement of Persons and Migration of the ECOWAS Commission organized the Seventh Heads of Immigration Meeting in Accra, Ghana. The purpose of this meeting was to discuss the implementation of ECOVISA, its related cost, design as recommended by Experts in charge of visa issuance and control drawn from Member States and determine the way forward.
During the Accra meeting, it was recommended that a comprehensive comparative analysis of visa regimes in other continents be conducted to ensure the implementation of ECOVISA aligns with global best practices. Additionally, the Heads of Immigration recognized the need for regular engagement to discuss modalities and assess the progress of ECOVISA implementation at different stages.
ECOWAS has been dedicated to a harmonized approach in implementing the Protocol of Free Movement of Persons since its adoption. Member States prioritize creating a secure environment for migrants and removing barriers to facilitate mobility, particularly for community citizens. This requires a collective effort from all stakeholders and key actors involved in migration management within their respective countries.
Experts pitch for Kenya to join BRICS (China Daily)
As more countries are considering joining BRICS, the bloc of emerging economies, experts in Kenya are now urging the new administration to follow suit for economic and trade benefits.
The 15th summit of BRICS, comprising Brazil, Russia, India, China and South Africa, will be held in Johannesburg, South Africa, in August. The five countries account for over 40 percent of the world’s total population and a quarter of the global GDP. Some 19 countries reportedly have expressed willingness to join the group.
X.N. Iraki, an economist at the University of Nairobi, said Kenya, as a major economy in East Africa, should consider joining BRICS for trade and economic prosperity. Kenya should follow its peers like Algeria and Egypt in Africa in applying for BRICS membership, he said. “This will enable us to create better markets for our agricultural products.” Iraki also suggested that for Africa to grow its economy, there is a need to use local currency to promote intra-Africa trade.
In Comoros, leaders outline a common vision to harness Africa’s maritime potential (UNECA)
A historic ministerial meeting took place on 14 June in Moroni, the capital city of the Comoros, where blue economy experts and government officials from across Africa gathered around President Azali Assoumani to discuss how to leverage the potential of the oceans, seas and rivers for sustainable development.
The meeting resulted in the adoption of a strategy known as the Moroni declaration, which outlines a common vision and commitment to promoting the blue economy as a key driver of growth, innovation and resilience in Africa.
The blue economy refers to the sustainable use of oceans, rivers and lakes resources for economic and social benefits while preserving the health and diversity of marine ecosystems.
Africa has a unique position in the global blue economy, with 38 coastal states, 90% of its imports and exports conducted by sea, and an estimated value added of $100 billion generated by coastal tourism by 2030. The continent also has 49 million jobs currently generated in the blue economy sectors, and a projected value of $405 billion by 2030.
The participants agreed on a set of priority actions to implement the Moroni declaration, such as deepening trade relationships between Island States and other States throughout the AfCFTA, expanding the regional maritime security architecture for the Western Indian Ocean and advocating for increased public and private investment in; sustainable coastal and marine value chains, promoting, among others, responsible and sustainable fisheries, green infrastructures, ecotourism, renewable energies, and blue innovation.
The Moroni declaration will serve as a basis for engaging with other regions and stakeholders in advancing the blue economy agenda at the global level.
UNCTAD launches new index for countries to better measure economic potential (UNCTAD)
UNCTAD launched on 20 June a new generation Productive Capacities Index (PCI) to help countries make more accurate diagnostics and measurements of their economic performance.
In turn, this can shape more effective policies and their implementation. The PCI measures countries’ abilities to produce goods and deliver services, which are critical for international trade and global production value chains.
The PCI is available through a dedicated online portal with publications, manuals, resources and tools. It maps the productive capacities of 194 economies and provides a better measure of development than other traditional benchmarks such as gross domestic product (GDP). It’s multidimensional and measures economic inputs and potential as opposed to outputs.
UNCTAD Secretary-General Rebeca Grynspan said: “No nation has ever developed without building the required productive capacities, which are key to enabling countries to achieve sustained economic growth with accelerated poverty reduction, economic diversification and job creation.” UNCTAD defines productive capacities as “the productive resources, entrepreneurial capabilities and production linkages that together determine the capacity of a country to produce goods and services and enable it to grow and develop.”
Members to meet external stakeholders to advance discussion on extending TRIPS Decision (WTO)
The Chair of the TRIPS Council, Ambassador Pimchanok Pitfield of Thailand, said that since the last TRIPS Council meeting in March, she had met with members in various configurations to try and find common ground on the TRIPS Decision extension. The Chair recognized that no significant progress was made as some domestic consultations were ongoing but stressed her intention to keep working to bridge the existing differences.
Members examine deliberative functions, institutional matters on WTO reform agenda (WTO)
The informal meeting “is a further important opportunity for confidence and trust-building which can enable us to continue working on a good footing on these issues and overall on WTO reform,” she told members.
Director-General Ngozi Okonjo-Iweala said the discussions were part of better harnessing the potential of all WTO bodies to address pressing global trade matters and concerns and deliver meaningful results for the benefit of people around the world.
Members hold robust discussions on implementing Trade Facilitation Agreement (WTO)
The Committee meeting featured a dedicated session on the particular challenges faced by landlocked developing countries (LLDCs) in the transit of goods.
Concrete solutions were developed at the workshop to address challenges relating to customs formalities, transit guarantees, container seals and tracking, transit corridors and improving support to WTO members in TFA implementation relevant to transit activities.
How Digital Trade Can Drive Africa’s Economic Growth (U.S. Chamber of Commerce)
Digitization has shaped the way millions across Africa shop, bank, and communicate. It has also changed the prospects of the continent’s trade landscape and has the potential to unlock new pathways for economic growth. The next step in Africa’s digital future will be regional, fulfilling the vision outlined in the African Union’s Digital Transformation Strategy for Africa through strong frameworks and policies offered by the African Continental Free Trade Area (AfCFTA) that can help the continent get there.
How the digital economy and regional integration through the AfCFTA can transform African trade, lift economic growth, and support livelihoods across the continent dominated discussion at the latest Kenya International Investment Conference (KIICO.)
At the invitation of the Cabinet Secretary for Trade of Kenya Moses Kuria and the Kenya Investment Authority (KenInvest)’s Managing Director June Chepkemei, the U.S. Chamber’s U.S.-Africa Business Center (USAfBC) was the strategic partner of this year’s conference, “Unlocking Africa’s Gateway.” The conference took place May 29 – 31 in Nairobi, Kenya, on the periphery of negotiations held by the AfCFTA Council of Ministers
The AfCFTA Digital Trade Policy Dialogue was but one of several events organized with the input of the USAfBC, as part of fulfilling its partnership under the historic MOU signed in late 2022 between the AfCFTA Secretariat and the U.S. Chamber—the only private sector organization to sign such an MOU in the world.
Both the AfCFTA and digital trade are poised to be engines of African growth. An interconnected Africa, made possible through the AfCFTA and a single digital African market, will lower barriers to business, trade, the internet, online communication, banking, health care – and much more. Connections throughout the continent are key to bridging digital divides, sparking economic growth, creating jobs, and moving all of Africa into the digital age. The U.S. Chamber stands ready to be a trusted partner and engaged advocate.
UK withdraws duty benefit scheme; to hit Indian exports (The Tribune India)
The UK’s decision to withdraw duty benefit scheme GSP may impact Indian exporters from certain labour-intensive sectors such as leather and textiles as they were the major beneficiaries, according to experts and traders.
The UK is replacing the Generalised Scheme of Preferences (GSP) with a new Developing Countries Trading Scheme (DCTS) from June 19. Labour-intensive sectors, including certain textile items, leather goods, carpets, iron & steel goods and chemicals may get impacted due to this.
“As the UK has come out of the EU, it has designed its own GSP scheme. Each country sets a product-wise threshold limit, if a country’s exports cross the limit, the GSP concessions stop. The UK withdrawing GSP concessions on labour-intensive products was expected as the two countries are negotiating a free trade agreement,” GTRI co-founder Ajay Srivastava said.
Understanding rules of origin under the Developing Countries Trading Scheme (GOV.UK)
The changes include simpler product specific rules (PSRs) and more generous cumulation options for exporters in Least Developed Countries ( LDCs ). For example, leather shoes under Chapter 42 have alternative PSRs. LDCs could either meet a Change of Tariff Heading or satisfy the 75% non-originating material maximum rule.
After the pandemic storms, digital trade offers LDCs rays of sunshine (Trade for Development News)
The dark storm of the coronavirus pandemic came with a silver lining: new ways of providing services and doing business by leveraging e-commerce and other digital opportunities. Video conferencing apps enabled lessons or work to be accessed remotely; mobile apps delivered food, groceries, and medicines at the click of a button.
But silver linings don’t shine bright for all. Gaps in technology, infrastructure and skills, especially in Least Developed Countries (LDCs), highlighted the need to help entrepreneurs grasp the possibilities of digital transformation.
With funding from the Enhanced Integrated Framework (EIF), the United Nations Conference on Trade and Development’s (UNCTAD) E-commerce and Digital Economy Program has conducted many rapid e-trade readiness assessments to identify policies that need to be adjusted to boost e-commerce.
As a result, several countries are investing in infrastructure, such as building e-commerce platforms in Cambodia and Senegal, while also developing skills and payment solutions. Such initiatives require partnerships with key agencies and institutions, and need financial resources to be mobilised through public-private partnerships.
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EU and Kenya conclude negotiations for an ambitious Economic Partnership Agreement with strong sustainability provisions
The EU and Kenya have announced today the political conclusion of the negotiations for an Economic Partnership Agreement (EPA). The Agreement will boost trade in goods and create new economic opportunities, with targeted cooperation to enhance Kenya’s economic development. It is the most ambitious EU trade deal with a developing country when it comes to sustainability provisions such as climate and environmental protection and labour rights.
The negotiations were concluded during an official ceremony in Nairobi by European Commission Executive Vice-President and Commissioner for Trade Valdis Dombrovskis and Cabinet Secretary of Kenya’s Ministry of Investments, Trade and Industry, Hon. Moses Kuria, in the presence of Kenyan President Dr. William Samoei Ruto.
The EU is Kenya’s first export destination and second largest trading partner, totalling €3.3 billion of trade in 2022 – an increase of 27% compared to 2018. The EPA will create even more opportunities for Kenyan businesses and exporters, as it will at once fully open the EU market for Kenyan products, and it will incentivise EU investment to Kenya thanks to increased legal certainty and stability.
Kenya has a pioneering role in sustainability efforts on the African continent and is a reliable ally in the fight against climate change. It co-leads the Coalition of Trade Ministers on Climate initiative launched earlier this year, together with the EU, Ecuador and New Zealand. The EU-Kenya EPA builds on this strong track record and is the first agreement with a developing country in which the EU’s new approach to trade and sustainable development is reflected. The deal contains strong trade and sustainability commitments, including binding provisions on labour matters, gender equality, environment and the fight against climate change.
This is a balanced agreement, taking into account Kenya’s development needs by allowing it a longer period to gradually open its market, safeguards for agriculture, and protection of its developing industry. A dedicated chapter has been included on economic and development cooperation, aimed at enhancing the competitiveness of the Kenyan economy. Together with EU development assistance, this will help build capacity and assist Kenya in implementing the EPA smoothly, while supporting local farmers in meeting EU standards and in reaping the opportunities this agreement provides.
Background
The Economic Partnership Agreement between the EU and Kenya aims at implementing the provisions the EU-East African Community (EAC) EPA, and it will be open for other EAC countries to join in the future.
The EPA and its ambitious commitments represent a crucial deliverable of the EU’s 2021 Trade Policy Review and its trade policy with Africa, helping the EU to deepen and expand its current trade agreements with African countries and enhance their sustainability objectives.
Key elements of the EU-Kenya Economic Partnership Agreement
The EU and Kenya have concluded today the negotiations on an ambitious trade agreement through which they will implement bilaterally the regional Economic Partnership Agreement (EPA) between the EU and the Eastern African Community (EAC).
The agreement, which will bring about an important boost for trade in goods, contains substantial development and cooperation elements and is the first and most ambitious trade deal with a developing country to contain strong commitments on sustainability.
The EU is Kenya’s second largest trading partner, and Kenya’s most important export market. Total trade between the EU and Kenya reached €3.3 billion in 2022, with an increase of 27% compared to 2018.
EU’s imports from Kenya are €1.2 billion and are mainly vegetables, fruits, and flowers. EU exports to Kenya amount to €2.02 billion and are mainly mineral products, chemical products, and machinery. The EU is the first export destination for Kenya, with 16% of its total exports in 2022, followed by Uganda (12%) and USA (8%).
The EPA between the EU and Kenya is a significant milestone as it will be the first trade agreement with an East African Community country to enter into force. A regional EPA was negotiated in 2014, signed in by Kenya, Rwanda and the EU in 2016, but could not be applied as it required signature and ratification by all the EAC countries. This EU-Kenya agreement implements bilaterally the provisions of the Economic Partnership Agreement between the EU and the EAC Partner States. It follows a decision by the East African Community Heads of State Summit on 27 February 2021. The EU-Kenya Agreement will be open to accession of the EAC Partner States.
1. Trade and investment, opportunities for business in the EU and Kenya
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The agreement will provide free access to the EU market by removing tariffs and quotas on all Kenyan exports of goods (except arms).
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Trade liberalisation will be asymmetrical: Kenya will open its market partially and very gradually to imports from the EU, taking account of the different levels of development. So, Kenya will benefit from transitional periods and exclusion of sensitive products from liberalisation.
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The agreement allows dealing with unfair trade. It references and incorporates WTO law, which for example deals with dumping products at unreasonable low prices in the other party’s market. The inclusion of safeguards will also allow the EU and Kenya to reintroduce duties if a surge in imports from the other side disturb or threaten to disturb their economies. Special safeguard conditions are envisaged to protect Kenyan infant industries (those that Kenya seeks to develop). Unjustified or discriminatory restrictions on imports and exports will also be banned.
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Rules of Origin will define the products eligible for trade preferences under the EPA, as set out in the EU Market Access Regulation. This regulation provides duty-free and quota-free access to the EU market for products originating in African, Caribbean and Pacific countries which do not benefit from the EU’s Everything But Arms (EBA) scheme or have concluded, but not yet ratified, an EPA with the EU. It is envisaged that a new protocol on rules of origin will be negotiated as soon as possible, but at latest within the first five years of the implementation of the EPA.
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The EU and Kenya share the objective of providing efficient custom procedures to traders, in particular to smaller entities. Customs-related provisions will aim at facilitating trade, promoting better customs legislation and procedures, close cooperation between Kenya’s and the EU’s customs institutions and providing support to the Kenyan customs administration.
2. Agriculture, industrial development and diversification of trade
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Provisions on agriculture will aim at sustainable agricultural development, including food and nutrition security, rural development, including the sustainable use and management of natural and cultural resources, and income and job creation in the agricultural sector in Kenya. These measures will guarantee that the EU will not apply export subsidies for agriculture products, even in times of market crisis.
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Provisions on animal and plant health and hygiene (sanitary and phytosanitary – SPS) measures will allow, among others, to address animal and plant health-related trade issues, promote the harmonisation of intra-regional standards in accordance with international standards, and enhance the capacity of Kenya to implement and monitor these measures. Nothing in the agreement changes the way the EU adopts and enforces its food safety rules for imports, which are the same for domestically produced and imported products.
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The EU and Kenya will reinforce joint work on SPS matters and engage in a policy dialogue on agriculture and food security, which will include transparency on their respective domestic policies.
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EU development assistance, through trade capacity-building measures, will support farming and rural employment, and farmers’ capacity to comply with agricultural standards. This alignment of standards will make it easier to comply with the requirements necessary to bring those products into the EU and open trading opportunities in the agricultural sector.
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The agreement will put in place an effective mechanism to solve disputes that may arise regarding the interpretation and application of its provisions. Among other things it will include independent panellists and due process and transparency involving open hearings, the publication of decisions, and the opportunity for interested parties to submit views in writing.
3. Trade and sustainable development
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The agreement includes a dedicated chapter on Trade and Sustainable Development that covers labour, gender equality, as well as environmental and climate matters.
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This includes the respect and promotion of the International Labour Organization fundamental rights, and the implementation of UN standards and obligations to prevent gender discrimination and support women’s empowerment.
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It also commits the parties to the implementation of multilateral environmental agreements (e.g. the Paris agreement on climate change), and contains obligations to combat illegal wildlife trade, illegal logging, and illegal, unreported and unregulated fishing.
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The EU approach for the joint implementation around these commitments is fundamentally centred on cooperation and engagement. Change is best facilitated with continuous and positive engagement, supported by regulatory dialogue, technical assistance and capacity building.
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The Trade and Sustainable Development commitments are binding and enforceable. In case one of the two parties violates these commitments, the agreement envisages the possibility to trigger a specific dispute settlement mechanism. The dispute settlement mechanism also includes a so-called compliance stage, which means that the party found in violation of its TSD commitments will have to promptly inform how it will implement the panel report and carry this out within a certain period of time. This will be subject to panel review.
4. Implementation and monitoring
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The agreement will have an institutional chapter that envisages to set up ministerial, senior official and technical bodies to steer, support and oversee its implementation.
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A chapter on economic and development cooperation will aim at enhancing the competitiveness of the Kenyan economy by building supply capacity and assisting Kenya in implementing the EPA smoothly.
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The agreement will offer the possibility of adding new areas once Kenya is ready to take up such commitments. For instance, provisions on trade in services, , competition policy, investment and private sector development, intellectual property rights, transparency in public procurement could be envisaged to be added within five years following the entry into force of the deal.
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The agreement will give civil society representatives (business associations, trade unions, non-governmental associations) a role in its implementation, including on the provisions on trade and sustainable development. Domestic advisory groups will be set up with independent civil society representatives that will advise both sides on the implementation of the Agreement, as well as a Consultative Committee were representatives of civil society from the EU and Kenya will meet regularly.
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The agreement includes a commitment to initiate a review process of the TSD aspects of the agreement, as soon as the trade agreement comes into force.
Next steps
The EPA will have to go through legal revision (“legal scrubbing”) and then be translated before the European Commission submits it for signature and conclusion to the Council. Once adopted by the Council, the EU and Kenya can sign the agreement. Following the signature, the text will be transmitted to the European Parliament for consent. After the consent by the Parliament, the parties may decide to provisionally apply parts of the agreement. Once Kenya and the EU Member States ratify it, the agreement enters into force.