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SA has capacity to produce its own pharmaceutical products – President’s advisor (SAnews)
Special Advisor to President Cyril Ramaphosa, Professor Olive Shisana, says South Africa faces challenges in medical products, vaccines and technologies in terms of supply chain management and procurement, despite having the capacity to produce therapeutic goods.
According to Shisana, the country has a well-developed pharmaceutical industry and access to a range of medical products and technologies. “However, access to these is often limited to the private sector due to their high cost.”
“The recent example of issuing a tender to a non-South African supplier instead of a local pharmaceutical state-owned company is an example of policy misalignment that is currently been addressed.
“It would be good for the Department of Trade and Industry to expedite the preferential procurement policy Bill by tabling it in parliament to strengthen the Department of Health’s ability to invoke preferential procurement provisions in law and purchase local products even if they come at a premium because, in the end, this would benefit the economy,” she explained.
Automotive trade performing strong after pandemic (Engineering News)
Although the domestic automotive industry’s recovery to prepandemic levels continued in 2022, it was at a slower pace than in 2021, with many key performance indicators still remaining below the prepandemic levels, the 2023 Automotive Export Manual publication released by the Automotive Industry Export Council (AIEC) on May 5, shows. The manual states that, in terms of trade, however, the industry reflected a sound performance.
The export value of vehicles and automotive components increased by R19.8-billion, or 9.5%, from R207.5-billion in 2021 to a record R227.3-billion in 2022, comprising 12.4% of total South African exports.
IMF Chief Calls Kenya ‘Innocent Bystander’ in World’s Debt Shock (BNN Bloomberg)
The International Monetary Fund’s chief capped a visit to Kenya with an enthusiastic endorsement of its economic management and expressed confidence that the cash-strapped nation would keep servicing its debts. Kristalina Georgieva said that in the IMF’s assessment, Kenya’s debt is sustainable and the administration of President William Ruto is moving swiftly to improve its fiscal position. The remarks come at a sensitive time for the East African nation, with some investors dumping its bonds and questioning its ability to make a $2 billion payment next year.
Kenya is one of several African countries facing growing investor concern about debt and access to funding, with Ghana and Zambia already declaring default and entering into restructuring talks. As of Friday, the African continent as a whole was trading as a “distressed” credit, according to a JPMorgan index, with an average yield of more than 1,000 basis points above the US benchmark.
“Countries that are at the point of needing debt restructuring are still a relatively small group. Kenya is definitely not among them,” Georgieva said in a briefing with reporters on Wednesday in Nairobi. “We think Kenya is a case of innocent bystander. It has been hit by external shocks.”
The $2 billion Rwandan airport that could help African aviation take off (CNN)
Some 40 kilometers south of the Rwandan capital of Kigali in the Bugesera District, construction vehicles and high-visibility vests swarm across an arid expanse of land.
Here, two strips of tarmac are the cornerstone of a $2 billion airport, whose developers want it to be the jewel in the crown of Africa’s aviation industry.
Slated for completion in 2026, the new facility will boast a 130,000-square-meter main terminal building capable of accommodating 8 million passengers a year, a figure expected to rise to over 14 million in the following decades. Adjacent will be a dedicated cargo terminal, capable of accommodating 150,000 tons of cargo a year.
Yet benefits could spread far beyond Rwanda’s borders. The arrival of the new airport will help chip away at the critical problem of a fragmented network of routes that means passengers often have to travel via Europe or the Middle East when flying between African countries.
Jules Ndenga, CEO of Aviation Travel and Logistics Holding, said: “What what’s making it more challenging is the conditions of operating within the African continent. The cost of operations is so much more, whether it’s airport fees, whether it’s ground handling, parking, overflight (flying from one country’s airspace to another’s) – everything is much more expensive. Sometimes up to 50% more than in the Middle East and Europe, which makes the ticket prices even more expensive and makes (some) routes unviable.”
But solutions are touching down, starting with the Single African Air Transport Market (SAATM). First proposed in 2018, if implemented the policy would create a single market for African aviation, facilitating the free movement of people, goods, and services. The continent currently operates under bilateral air service agreements, a highly restrictive policy that makes it difficult to open new routes.
“Liberalization is not an easy subject – even in other regions, it took a lot of time. So, we are working on it. What is missing is the willingness of states to really implement it.”
The UK must seize the big trading opportunities Africa has to offer (Politics Home)
With Africa’s potential as an economic powerhouse, the continent presents an opportunity for investors and trade partners to engage in mutually beneficial partnerships. The UK, with its long history of ties with Africa, is one such partner, and a renewed focus on a trading relationship between the two regions could unlock tremendous opportunities for both.
It was not that long ago that UK’s share of trade with Africa was 30 per cent and now it is less than 4 per cent. Now that we have left the European Union, we are able to engage with Africa on our own terms and are starting to make progress. The UK currently has nine trade agreements with 18 countries across Africa; six Economic Partnership Agreements (EPAs) in sub-Sahara Africa, and three Association Agreements (AAs) in North Africa. However, we need to do more to break down the barriers of trade and work to engage with Africa.
What Africa should learn from Brexit (African Business)
A long-standing commercial truth is that it’s optimal to trade with those closest to you. It’s common sense really – the costs of moving goods are lower, synergies are better, the economies of scale kick in and so on. Africa, for example, is banking a great deal on the benefits that the African Continental Free Trade Area (AfCFTA) agreement will bring to growth and prosperity.
Covid-19, rocketing transport costs and security of supply issues – such as in May 2021, when a single giant ship containing vital manufacturing parts became grounded in the Suez canal for six days – have undermined the age of hyper-globalisation where supply-parts were outsourced to the cheapest places, however far away.
Countries are increasingly seeking to re-source global supply chains to friendly neighbours. The UK faces multiple crises, which can only be overcome in cooperation with our immediate European neighbours: these include catastrophic climate change, the Ukraine war, economic decline
UK ‘obvious choice’ as Morocco seeks to diversify trade (Al-Monitor)
In recent years, trade ties between the two countries have been growing. A trade deal in 2019 was one of the first since the UK voted to leave the European Union in June 2016. Since then, the countries have been signing a spate of partnerships across multiple sectors, including education, transport and renewable energy.
Intissar Fakir, senior fellow and director of the North Africa and Sahel Program at the Middle East Institute, told Al-Monitor: “I think the volume of trade [between the two countries] has increased something like 50% over the past couple of years,” mostly in aviation, automotive and renewable energy.
“For both countries, there’s a lot of advantages to increasing that collaboration,” she added. “In the post-Brexit situation, it makes sense for the UK to reach out to Morocco.” And Morocco, she said, wants to diversify its economic partnerships beyond the EU.
Zimbabwe commits to COMESA regional integration agenda (ZBC News)
ZIMBABWE has pledged its allegiance to the Common Market for East and Southern Africa (COMESA) regional trade agenda, which calls for the refining of competition regulations to reduce monopolies and protect consumer interests.
The COMESA Competition Commission’s 10th year anniversary in Malawi has created a platform for member states to assess the effects of competition in stimulating industrial growth.
A competition and tariffs law consultant based in Zimbabwe, Mr Alexander Kububa revealed on the sidelines of the celebrations in Malawi this Thursday that commitment by Zimbabwe to focus on increased competition will boost quality of goods and services.
“There is that aspect which we need to focus on that is on identifying competition needs and rectifying challenges so that the competition law is modelled along regional market expectation,” noted Dr Alexander Kububa.
The agreed position is that Zimbabwe should not lag behind in facilitating a competitive climate for local industry by continuously reviewing laws governing company mergers and unfair trading practices.
Association Laments Over Economic Crisis, Calls for Economy Improvement (Voice of Nigeria)
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Centre for the Promotion of Private Enterprise (CPPE) have called on governments at all levels to urgently work in synergy with relevant stakeholders in fashioning appropriate strategies to improve and stabilize the economy.
They lamented the deplorable state of the economy, stressing that virtually all the sectors are seriously struggling to remain afloat.
Specifically speaking at the second quarter media briefing of the year on socio-economic issues in Lagos state, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Ide John Udeagbala, said that economy instability in the country has become a worrisome situation.
“It will also address the impact of fuel subsidy removal without adding additional debt burden on the nation. Besides, our ability to provide some basic raw materials internally will help our industries compete better to benefit from the African Continental Free Trade Agreement (AfCFTA),” he said.
Calling on the Federal Government to urgently fix the country’s four refineries, which have remained in comatose for almost two decades to end petroleum products importation into the country, he said this would help generate employment opportunities for the youths.
Africa trade pact could boost economic growth, IMF says (BusinessLIVE)
Africa’s continent-wide free-trade area if successfully implemented could significantly boost economic growth and improve living standards at a time of rising geopolitical tensions and climate change, the International Monetary Fund said in a study.
“Greater trade openness would help countries adapt to climate change and to strengthen food security, including by improving the availability and affordability of food supplies,” the IMF said in its Trade Integration in Africa — Unleashing the Continent’s Potential in a Changing World report. “More diversified and broad-based trade would reduce the impact of disruptions in specific markets and products that could result from shifts in global trade patterns.”
To obtain the full benefits of AfCFTA, which could be the world’s biggest free-trade zone by area when the treaty becomes fully operational by 2030, large cuts in tariff and nontariff trade barriers among African nations will be needed, the IMF said in the report.
The IMF also found that comprehensive reforms along with the AfCFTA implementation could increase the median merchandise trade flow between African countries by 53% and the rest of the world by 15%. That could raise the median per-capita GDP in Africa by more than 10% and lift as many as 50-million people in the world’s poorest continent from extreme poverty by 2035, it said.
WTO: Africa to Benefit from Ocean Sustainability If Fisheries Subsidies Agreement is Secured (This Day)
Africa stands to gain greatly from strengthened ocean sustainability if the World Trade Organisation (WTO) agreement on fisheries subsidies and further outcomes from the second wave of negotiations are secured by the 13th Ministerial Conference (MC13) of the global trade body expected to hold in February 2024.
The Deputy Director-General, WTO, Angela Ellard, who made the remarks at a workshop on fisheries subsidies organised by the WTO for English-speaking African countries held in Zanzibar, Tanzania, highlighted the urgency of improving the sustainability of marine fisheries and the importance of collective action by all governments.
She noted that with over 12 million people in Africa depending directly and indirectly on the marine fishing industry for their livelihoods, it, “is crucial that we work together toward sustainable management of our ocean resources.”
Experts from Member States of the Economic Community of West African States (ECOWAS) involved in the process of achieving a Digital Africa were sensitized on the Digital Transformation Strategy (DTS) for Africa, and the Monitoring, Evaluation and Learning Framework (MELF) 2022-2030 from 26-28 April 2023 in Abuja, Nigeria.
Addressing the opening session of the workshop, Mrs Mihret Woodmatas, Senior Information and Communication Technology (ICT) Expert of the African Union Commission (AUC), recalled that the DTS 2020-2030 aims to create an integrated and inclusive digital society and economy in Africa, driven by digital technologies and innovation to promote continental integration, inclusive broad-based economic growth, boost job creation, bridge the digital divide and eradicate poverty.
She was followed by Mrs Marie Ndé Sène Ahouantchédé, who spoke on behalf of Mr Sédiko Douka, Commissioner for Infrastructure, Energy and Digitalisation. Mrs Ndé Sène Ahouantchédé reiterated the commitment of the ECOWAS Commission to serve as an intermediary and to provide unfailing support at the regional level for any action aimed at coordinating digital transformation in line with the region’s ambitions for socio-economic development and integration.
She also recalled the coordination dynamics of the digital transformation launched by ECOWAS and manifested through the organisation of the first Experts’ Forum on e-Governance on 28 and 1 March, and a workshop on the Internet of Things and Emerging Disruptive Technologies held on 29 and 30 March 2023, to leverage the potential of digital technology and thus help tackle the challenges and meet the ambitions of the region, including the 4×4 Strategic Objectives 2022-2026 of the ECOWAS Management.
Addressing the opening of the third African Trade Policy Centre (ATPC) Steering Committee Meeting (SCM) in Accra, Ghana, Mr. Karingi said while celebrating the AfCFTA, Africa is now mulling its next steps towards a customs union and a common market. Thanks to the AfCFTA, Mr Karingi added, the continent was no longer a helpless bystander as developed countries pursued their own strategic interests at Africa’s expense.
Stephen Karingi, Director of Regional Integration and Trade Division at the Economic Commission for Africa (ECA), called on African countries to expedite the reform of their domestic policy and institutional landscape to boost intra-African trade and accelerate economic transformation through effective implementation of the African Continental Free Trade Area (AfCFTA).
“The AfCFTA now offers the perfect platform for Africa to pursue policies of strategic autonomy just like everyone else is doing,” Mr. Karingi told participants, underlining that the AfCFTA was a development tool that can help Africa tackle many challenges such as food insecurity, joblessness, marginalization and health insecurity.
“The AfCFTA can help Africa fix its macroeconomic challenges, address food insecurity, overcome the predicament of jobless growth, and serve as a tool for inclusive and sustainable development. All this is possible, but only if we fully implement the AfCFTA and unleash its potential to the full,” said Mr. Karingi.
Why Africa consumes what they do not produce (Monitor)
Recently, the East African Community (EAC) started moving towards harmonising trade among its member countries where it hopes to have one test, one standard and one certificate. However, while trade harmonising among African trade blocs has been going on, ensuring member countries can trade among themselves, trade amongst African countries is yet to happen. Therefore, the next step, according to Mr David Livingstone Ebiru, the executive director of Uganda National Bureau of Standards (UNBS), is to create a harmonised trade among African countries.
“While there is 1.3 billion people in Africa, there is only 16 percent trade among African countries. The irony is that while many African countries are drawn to trade with other trade blocs, these have rejected our goods on grounds of product quality. Additionally, several trade blocs have also used the issue of standards against Africa,” he says.
Mr Odrek Rwabogo, the presidential advisor on export and industrial development points out that our major exports are horticulture products and European standards keep getting tighter to protect their population but also limit our sales.
“If the importers detect something that goes against their standards, the destruction is done for the whole consignment and at the importer’s cost. We lose between $100m and $180m in interceptions. While all that affects our revenue, it also destroys our reputation as we are looked at as those with wanting standards. We need to be smarter with the standards that are regularly updated.
Africa’s $1trn agribusiness pot open to investors by 2030 (Businessamlive)
Africa’s agribusiness sector is predicted to grow to become a $1 trillion business by 2030. Already, leaders of the continent’s top agribusiness companies, while sharing their thoughts on the future of the industry, believe that agribusiness will become the ‘new oil’ on the continent.
“By transforming Africa’s agriculture sector, it will become the engine that drives Africa’s economic transformation through increased income, better jobs higher on the value chain, improved nutrition, and so on,” Blanke said in a remark at an Africa Investment Forum (AIF) session titled, Agribusiness: Investment Conversation with Industry Leaders.
Jennifer Blanke, vice president for agriculture, human and social development at the African Development Bank (AfDB), says agriculture is a key priority for the pan-African multilateral development bank through its Feed Africa strategy.
German chancellor, on ‘charm offensive’ in East Africa, backs G20 seat for AU (The North Africa Post)
Germany supports the inclusion of the African Union (AU) in the G20 group of nations, the country’s Chancellor, Olaf Scholz, said on Thursday, May 4, as he arrived in Kenya on a three-day trip in East Africa, that will also take him to Kenya. The visits are meant to advance talks on trade and co-operation pacts with the two countries.
Scholz’s tour is widely seen as part of a European effort to make inroads with countries of the so-called Global South and push back against Russian and Chinese influence. Berlin — much like Washington — is convinced that Western democratic nations can make better partners with Africa than can China that has faced criticism for its so-called ‘debt-trap diplomacy.’
Beijing has been accused of using its Belt and Road Initiative (BRI) as part of a manipulative global strategy, funding major infrastructure projects especially across Africa, which has turned it into the world’s largest government creditor to developing nations, with poorer borrowers struggling to manage their debt loads. Hence the EU and the US have touted their own alternatives to the BRI, but both schemes rely on private lenders, making their prospects uncertain.
Intergovernmental Group of Experts on E-commerce and the Digital Economy, sixth session (UNCTAD)
This Intergovernmental Group of Experts aims to strengthen the work of UNCTAD on information and communications technologies, e-commerce and the digital economy for development, so as to enhance its ability to support developing countries to engage in and benefit from the evolving digital economy, and reduce the digital divide, for the creation of more inclusive knowledge societies.
18 May is on the agenda of all observers of international trade. On that date (small delay is possible), we will know if the Black Sea Grain Initiative is extended. Until now, the Black Sea Grain Initiative has been key to moderate global prices of grains (see first graph below). Indeed, according to official figures of the United Nations, 56% of exported commodities via the agreement are destined for developing countries.
However, for the moment, Russia indicated that it would not renew the deal if sanctions against Russia were not lifted beforehand. In the event the agreement is not renewed, the risk for ship owners will be too high and they would stop shipping Ukrainian agricultural products. Consequently, a non-renewal would put a lot of pressure on Ukrainian farmers, who are stuck with high stocks of cereals, while the rest of the world – mainly developing countries – would face an umpteenth food shortage combined with higher grain prices.
Bridging the SDG’s financing gap (Observer Research Foundation)
India’s G20 Presidency coincides with the rapidly increasing dangers posed by climate change, rising inequality, and the looming threat of an economic recession. Nonetheless, it offers New Delhi a unique opportunity to shape the post-pandemic development narratives, and to delineate and advance a new global development discourse from the perspective of the Global South.
The Decade of Action is quickly approaching its deadline, as progress towards achieving the Sustainable Development Goals (SDGs) falls perilously behind in many parts of the world. One of the most significant concerns for the countries of the Global South is the massive shortfall in financing required to achieve the goals. It is estimated that developing countries face an annual deficit of US$ 1.7 trillion in SDG financing, while more than US$ 4 trillion accounts for the annual gap in closing the SDGs for the world. It is the least developed countries that face the biggest hurdles. Table 1 illustrates that GDP growth in these countries would need to reach heights—seemingly insurmountable given current trends—to meet the required financial investments for achieving SDG targets 8.1, 1.1, and 9.2 by 2030.
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SA: Private renewable energy procurement landscape is changing (ESI-Africa.com)
While investment opportunities into renewable energy used to concentrate on the large-scale project side through the REIPPP programme, the tables have turned as private procurement of new generation capacity is growing exponentially.
The potential size of the private procurement market was approximated by the IRP2019 as around 500MW a year by 2030. However, this has already been exceeded in 2022. The mining sector alone has reported a pipeline of renewable energy projects estimated at more than 2GW to be brought on stream in 2022 to 2023, with an estimated cost between R30 billion and R40bn.
The 2023 Large-Scale Renewable Energy Market Intelligence Report (MIR) points out: “Public procurement of new generation capacity is mainly guided by the Integrated Resource Plan (IRP) 2019. It has the greatest growth potential and relatively low entry barriers due to the IPPO’s established REIPPPP procurement framework. However, no new bid rounds have been announced following BW6.”
Tanzania plans largest bridge in Africa to boost trade (Supply Management)
Tanzania has unveiled ambitious plans to construct what would be by far the largest bridge in Africa, a 50km structure connecting the mainland to the Zanzibar islands to boost trade. The country has been looking to diversify the economy of the Zanzibar islands, home to 1.6m people, which depends mainly on tourism.
Deputy works and transport minister Godfrey Kasekenya said the government was talking to prospective Chinese investors about plans to finance a 50km bridge between the coastal city of Dar es Salaam and Zanzibar.
Currently Egypt boasts Africa’s longest bridge, the 6th October Bridge in Cairo, which spans 20.5km, but the new project would be more than double that length.
South Africa’s agriculture sector is growing jobs (ESI-Africa.com)
South Africa’s agriculture sector continues to show growth with opportunities for further expansion through, among others, renewable energy applications.
GreenCape’s 2023 Sustainable Agriculture Market Intelligence Report said the agriculture sector has continued to be “one of the few sectors of the South African economy that has experienced continued expansion over the past two years (14.9% y/y in 2020 and 8.8% in 2021).
The MIR on agriculture said the number of jobs in the sector has also grown, up by 1% y/y with a total of 874,000 people working in primary agriculture by the end of 2021. “This is significant, especially when juxtaposed against other sectors, which have experienced significant job losses in the last two years. The indicators for confidence in the agriculture sector are also positive, aided by weather forecasts predicting good rains for the next planting season.
“This has led to strong machinery sales figures, indicating that farmers are confident enough in the sector to make long-term investments in movable assets,” reads the MIR.
Nigeria-Uganda discuss investment opportunities (New Vision)
Nigeria and Uganda have held the first-ever business forum to discuss investment opportunities on the optimization of existing investment and trade opportunities in the two naturally endowed African countries.
According to the Minister of Trade and Industries and Cooperatives, Francis Mwebesa, the forum will find a harmonious ground in tackling the bottlenecks and the cost of doing business that hinder exports of the two countries’ competitiveness.
“Trade between Uganda and Nigeria is still very low and there is a need to promote intra-Africa agenda. We were both very active during the negotiations of the African Continental Free Tarde Area (AfCFTA) and I am quite sure that both countries will remain steadfast during the implementation of the AfCFTA protocols,” he explained.
Mwebesa noted that Uganda is committed to improving the business environment and has taken a strategic direction to embrace the liberal trade policy and continue to drive the economy in different spheres like a computerized land registry, quick access to licenses and registration, introduction of electronic single window system under the cross borders trade initiatives establishment of a one-stop border point.
There is also automation of customs procedures, an improvement in transit flow through the elimination of existing non-tariff barriers, and expansion of market access opportunities through the East African Community (EAC), COMESA, and Free Trade Agreement (FTA) among others which Mwebesa said are a positive move for private sector players to do business in Uganda to expand regional markets.
Ruto urges swift removal of EAC trade restrictions (The Citizen)
President William Ruto of Kenya is appealing for the swift removal of barriers hampering trade in East Africa. He said in Nairobi on Tuesday that barriers at border lines were impeding the movement of people, goods, and services.
“Removal of such barriers is necessary for sustainable growth and development in the East and Horn of Africa regions,” he said. The Kenyan leader criticised political boundaries as “old-fashioned and divisive” and urged the region to work together to build bridges of friendship. “We must not give credibility to the artificial boundaries that exist in our region,” he said when he launched a flagship report on migration in the EA and Horn of Africa blocs.
Related: EAC ponders harmony gross vehicle weight (IPPMedia)
Used clothing imports to Africa strain local ecosystems, waste management (National Catholic Reporter)
There is an increasing need for inexpensive clothing in the African region. Yet at the same time, secondhand clothing imports are contributing significantly to problems of plastic waste and waste management across the continent.
A new report published in February — “Trashion: The Stealth Export of Waste plastic clothes to Kenya” — has provided insight into the impact of secondhand clothing imports to Africa. From Kenya to Madagascar, Uganda to Nigeria and Zimbabwe to Mozambique, secondhand clothing imports are causing strain on natural ecosystems because the supply far outpaces the demand.
Problems are worsened by poor capacity to process waste and decongest landfills that have themselves become health and environmental hazards.
While trade in secondhand clothing imports from the United States, Europe and other western markets is legal in some African countries, it has gone underground in other countries such as Zimbabwe, where the trade is banned.
The value chain for imported secondhand clothing, most of which is synthetic plastic, is brisk business in many African countries where new clothing is beyond the reach of many. Inflation and other economic difficulties have been driving up costs, stretching disposable incomes and leaving many households unable to afford new clothing and shoes.
Africa is establishing its own oil bank to reduce dependence on foreign financiers (Business Insider Africa)
African nations that are members of the Petroleum Producers’ Organisation will collaborate with the African Export-Import Bank to launch an energy bank by the year’s end, according to Dr. Omar Farouk Ibrahim, the APPO general secretary.
The secretary-general stated in a goodwill message delivered at the sixth edition of the Nigeria International Energy Summit (NIES) held recently in Abuja, Nigeria, that the process of creating the bank, and cooperation between APPO and Afreximbank, had reached an advanced level. He also stated that a decision on the site of its headquarters and a launch date will be made soon.
Dr. Omar Farouk Ibrahim, “This is going to focus essentially on funding oil and gas projects on the African continent because the funds have dried.” He also noted that the World Bank, and other international financing institutions that typically finance oil and gas projects in Africa are shutting down their financing channels in addition to having”stringent conditions, which doesn’t make a lot of sense” compared to 20 or 30 years ago.
Africa projected to outpace Asia as world’s fastest-growing region - Mo Ibrahim report (Business Insider Africa)
Africa’s ready market of more than 1.4 billion people under the African Continental Free Trade Area (AfCFTA) has surpassed the European Union (EU) single market, US-Mexico-Canada Agreement (USMCA) and Southern Common Market (MERCOSUR) combined, the report states. The report, based on the United Nations Department of Economic and Social Affairs (UNDESA), highlights that Africa is the world’s youngest continent, and is projected to be the only region whose population will grow significantly from 2060.
The report also notes that there is no green global economy without Africa’s natural resources, which account for 30 per cent of the world’s mineral reserves, many of which are critical to renewable and low-carbon technologies. The Congo Basin is listed as the world’s first carbon sink, absorbing more carbon than the Amazon. It absorbs 4 per cent of global carbon emissions annually, offsetting more than the whole continent’s emissions.
While Africa’s trading has shifted mainly towards the Middle East and Asia, the raw materials export model has remained the same. Since 2000, the EU’s share of Africa’s export market has dropped by a quarter, while China’s share has increased five-fold. Asia now represents almost 42 per cent of Africa’s exports and over 45 per cent of its imports, above Europe in both cases.
The report highlights that the future looks bright for Africa; however, the current global financial system does not meet Africa’s needs. More than a third or 40.4 per cent of Africa’s public external debt is owed to the private sector, with multilateral lenders (38per cent) such as the World Bank (16.4per cent), International Monetary Fund (8.2 per cent) and the African Development Bank (6.1 per cent) being owed the next most.
The Role Of Blockchain In Promoting Cross-border Trade In Africa (Blockbuild.africa)
Cross-border trade and commerce in Africa is an important part of the region’s economy, with room for expansion. However, addressing the barriers to cross-border trade in Africa, such as inadequate infrastructure and high transportation costs, is critical to realizing the region’s full potential and driving economic growth and development.
In Africa, cross-border trade and commerce face a number of challenges, including inadequate infrastructure, high transportation costs, limited access to finance, and trade barriers. These obstacles have stifled Africa’s cross-border trade growth, making it difficult for businesses to expand their markets and reach new customers and blockchain is the best for this job.
Blockchain technology has the potential to revolutionize commerce in Africa by providing a transaction platform that is efficient, secure, and transparent. Here are some ways that blockchain can help Africa’s cross-border trade and commerce:
Members review latest safeguard actions, address WTO reform discussions (WTO)
At the biannual meeting of the Committee on Safeguards on 1 May, WTO members reviewed safeguard actions taken by fellow members and discussed the way forward in improving the functioning of the committee.
Japan, Australia and China reiterated their general concern regarding issues such as misuse of the safeguard instrument, insufficient information provided, and the numerous extensions to existing safeguard measures.
The committee reviewed notifications of new or amended SG legislation or regulations from El Salvador, the United States and Liberia. It also continued its review of the legislative notifications of the United Kingdom, Cameroon, Ghana and Zimbabwe.
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Big boost for trade in South Africa (Business Tech)
South Africa recorded a preliminary trade balance surplus of R6.9 billion in March 2023, according to the South African Revenue Service (SARS). When including trade with Botswana, Eswatini, Lesotho and Namibia (BELN), exports totalled R192.2 billion while imports totalled R185.3 billion.
SARS said that the increase in export flows in March was driven by gold, while the increase in the value of imports was due to higher importation of crude and petroleum oils.
China was South Africa’s biggest trade partner for March, making up 10.5% of total exports and 18.5% of imports. The United States (7.5%) was South Africa’s second-biggest export market, with Germany (6.5%), Japan (6.2%), and the Netherlands (4.8%) completing the top 5.
South Africa imported the second-largest amount of goods from Germany (8.0%). The United States (7.6%), India (6.9%), and Nigeria (4.3%) were also part of the top 5 countries that South Africa imported from.
Comments sought on draft policy for SMME funding (SAnews)
The Department of Small Business Development has reminded the public to submit comments on the Draft South African Small, Medium and Micro Enterprises (SMMEs) and Co-operatives Funding Policy, as the deadline approaches.
The draft policy proposes 17 critical interventions that will enable the estimated 3.2 million SMMEs and 43 000 cooperatives in the country to thrive.
These interventions include addressing fragmented financial support mechanisms, consolidating a database of small businesses, improving access to start-up capital and increasing business development support.
Kenya’s economic growth slowed to 4.8pc in 2022, KNBS says (The East African)
Kenya’s economy grew by 4.8 percent in 2022, a slower pace than 7.6 percent recorded the previous year, the statistics office has said. The Kenya National Bureau of Statistics (KNBS) released the Economic Survey 2022 Wednesday, detailing how various sectors and jobs market performed. Most sectors recorded decelerated growth compared to 2021, with agriculture and manufacturing contracting in the period.
“2022 was marked by many negative shocks from the supply side. The persistent shocks which are still present, created permanent negative effects impacting economic activity and the cost of living,” Kenya’s Treasury Cabinet Secretary Njuguna Ndung’u said.
“The economic survey will inform a raft of measures on policy reforms to support economic activity and address the cost-of-living concerns,” he added.
Nigerian govt to explore alternative funding model for oil, gas industry – NUPRC (Daily Nigerian)
The Nigerian Upstream Downstream Regulatory Commission, NUPRC, says the Federal Government has concluded plans to explore alternative funding models for the development of the country’s oil and gas resources.
Mr Komolafe said that the need to develop the country’s hydrocarbon resources required huge funding, hence the decision of the commission to develop alternative funding model for the industry. According to him, Nigeria will not be left behind in the energy conversation discussion as the country is a place where needs meet opportunities. “Africa and by extension Nigeria is well positioned because it has all it takes to bridge the energy gap in the light of energy transition.
Kenya Not Yet Fully Open to Ugandan Milk Products (Nile Post)
On March 14th, 2023, Kenya’s Agriculture and Livestock Development Permanent Secretary Harry Kimtai announced the suspension of the ban on the milk powder imports from Uganda.
However, Uganda’s milk industry players continue to grapple with non issuance of export permits and sometimes delays in issuance of the same by the Kenya Dairy Board.
Sources are indicating that some processors are not getting the permits at all questioning the criteria Kenya dairy daily board is using to award the permits. Musafari Hamidu, a truck driver of one of the leading milk companies in Uganda says that initially, each milk processor would get permits for 5 trucks a day through the Kenyan border although right now, only a few trucks can be cleared for an entire week.
According to the Dairy Development Authority (DDA) of Uganda, Milk production is estimated to have increased from 2.08 billion litres in 2015 to 2.64 billion litres in 2020. By the end of 2021 milk production was estimated to reach 2.81 billion short of the target of 3.0 billion litres. Dairy exports in the country reached a record high of 358.6 billion UGX in the last four years and nearly doubled compared to last FY 2019/20 with dairy equipment valued at 18.9 billion UGX being imported in the country to support the growing trade. This implies that milk production in Uganda is on the increase with massive investments by dairy producers and farmers.
Central African Republic: 2023 Article IV Consultation (IMF)
CAR is on the brink of a humanitarian crisis with acute food insecurity and access to health care drastically impaired. Social tensions have ratcheted up, including strikes in various sectors, on the back of a cost-of-living crisis triggered by the Russian invasion of Ukraine. Political tensions have also escalated from the President’s plans of a third mandate requiring revisions to the constitution.
The 2021 suspension of budget support—which deprived the government of 5 percent of GDP in financing—is now constraining, following the erosion of buffers, including the 2021 SDR allocation. The protracted balance of payment need is preventing the authorities from delivering basic public services to an already afflicted population. Against this backdrop, the authorities have requested Fund financing assistance.
ECA supports Benin in the formulation process of its AfCFTA National Strategy (UNECA)
The United Nations Economic Commission for Africa (ECA), through its Sub-Regional Office for West Africa, is supporting Benin in its drive to make the African Continental Free Trade Area (AfCFTA) operational. Through this support, the Ministry of Industry and Trade launched Thursday in Cotonou the process of formulating a national AfCFTA strategy that will serve as a framework for its implementation.
In his speech at the opening ceremony of the workshop, the Secretary General of the Ministry of Trade and Industry, Mr. Salami Amzath Bissiriou, said that “It is about constructing an economic zone where our country necessarily has a role to play, a stone to contribute to the consolidation of the common edifice.
As for the Country Coordinator of the United Nations System in Benin, Salvator Niyonzima, he recalled the benefits of this great inter-African market in relation to the objectives of the workshop. According to him, the reason for the presence of civil society organizations, executives from sectoral ministries and the private sector at this meeting is attributable to their willingness to engage in a dialogue that, in the near future, will lead to an AfCFTA strategy for Benin.
Angolan Infrastructure Poised to Spur Growth and Diversification (Energy Capital & Power)
As such, Angola’s Energy Sector Efficiency and Expansion Program Phase I will serve to connect the country’s three grid systems – the northern, central, and southern systems – through the construction of a 16,340km-long 400 kV North-Central-South transmission line by 2025. The interconnection system will evacuate approximately 1,000 MW of low-cost hydropower from the Kwanza River basin to the country’s capital and other population centers in the southern part of Angola.
This project is being implemented through a collaboration between the U.S. Agency for International Development’s Power Africa initiative and multilateral development financial institution, the African Development Bank (AfDB), as part of efforts to improve electricity distribution and strengthen the financial viability of the power market. The project will be overseen by Angola’s Ministry of Energy and Water and will involve a $530 million investment from the AfDB.
With the country’s national budget dedicated to the production, transmission, and distribution of electricity having increased from $482 million in 2021 to $490 million in 2022, Government support to promote the successful implementation of projects led by the private sector will be imperative towards supporting Angola’s power distribution capabilities. As such, major opportunities for foreign investors and strategic partners to participate in the transformation of Angola’s energy sector exist to improve the regulatory environment within the country; develop energy regulation, planning, and procurement; and enable regional harmonization and cross border trade.
Kenya can be a hub for USA to enhance trade, investment relationship with Africa through AfCFTA (Medafrica Times)
During the implementation of the Africa Continental Free Trade Area (AfCFTA) agreement, Kenya can be used by the United States as the hub for reaching the 1.3 plus billion African market, Kenya’s senior government official has said as Washington has been trying to strengthen its the trade partnership with Africa.
During his recent visit to Washington, DC, the Cabinet Secretary for Foreign and Diaspora Affairs, Alfred Mutua, told the American government that Kenya is open for business and encouraged American investors to invest in the country. Mutua also said the US is setting up a framework to allow Kenyans to apply for jobs and to get work visas on time and encouraged them to use this opportunity. While attending a bilateral session for negotiations on the Kenya-US Strategic Trade and Investment Partnership (STIP), Mutua welcomed the fact that the two countries have agreed to partner in the areas of trade and investment for job creation and visas for youth empowerment, health, food security, climate change, regional peace and security.
Gabon, Sierra Leone Accede to Establishment Agreement of Afreximbank’s Fund for Export Development in Africa (FEDA) (Afreximbank)
The Fund for Export Development in Africa (FEDA), the development impact-focused subsidiary of African Export-Import Bank (Afreximbank), has announced the accession of the Gabonese Republic and the Republic of Sierra Leone to the Fund through their recent respective signing of the FEDA Establishment Agreement.
FEDA described the accession by the two countries as a significant milestone, which will strengthen its ability to provide crucial support to African economies and achieve its objectives effectively. The new memberships expand the reach of FEDA’s interventions and reflect the Fund’s unwavering commitment to its mandate of providing long-term capital to African economies with a focus on industrialization, intra-African trade and value-added exports.
Technological Innovations in Logistics Support the Surge of Global Commerce (Engineering News)
As trade grows, particularly in Africa, constant technological innovation ensures that logistics providers keep pace, writes Natasha Parmanand - Managing Director of FedEx Express Sub-Saharan Africa Operations.
Africa already imports R676 billion (approximately USD37 billion) in freight and logistics goods every year, and the World Economic Forum (WEF) predicts that AfCFTA ratification will boost demand for intra-African freight by 28% by 2030.
Logistics networks are the backbone for trade growth, and it will take rapid and ongoing technological innovation to ensure that logistics providers keep pace with this growth. Fortunately, the logistics industry has a long history of technology-driven innovation, and this is likely to accelerate in the future.
In the future, the most successful logistics organizations will be those that are most agile and can quickly adapt to their customers’ needs. E-commerce customers are moving rapidly towards mobile online shopping – what’s known as m-commerce. Therefore, future online retail platforms will have to be optimized for mobile and must meet consumers where they are – not just on online retail sites, but on social media platforms like TikTok, Instagram, and in metaverse-based social and gaming environments.
The ECOWAS Commission through the Private Sector Directorate organized a technical meeting with private sector actors and the UEMOA Commission to review implementation of the 2015–2020 Regional Private Sector Development Strategy and to provide guidance for the development of the new strategy to cover a ten-year period, 2023–2033.
The meeting which was held in Abuja, Nigeria from 25-27 April 2023, also discussed the draft terms of reference for the development of the Regional Strategy for the Promotion of Start-Ups and digital enterprises.
Commissioner Economic Affairs and Agriculture, Madam Massandjé TOURE-LITSE, represented by the Acting Director Private Sector, Dr. Tony Luka ELUMELU said “some of these issues are enshrined in the ECOWAS 2050 vision, the Community Strategic Framework (CSF) Priorities and key relevant policies of ECOWAS like the 2022-2032 Micro, Small and Medium-sized Enterprise (MSME) Charter, the 2021 Public-Private Partnerships Policy and Guidelines. Others she said, built-in the values of the Fourth Industrial Revolution (4IR)/digitization including the emergence of digital enterprises or startups, digital currencies and blockchain technology and the growing importance of regional value chains vis-à-vis global value chains and globalization.
“The commencement of the African Continental Free Trade Area (AfCFTA), the African Union (AU) Agenda 2063, the UN SDGs (agenda 2030) and the ECOWAS Common External Tariff (CET) are other important emerging issues that the new strategies should consider” Mrs TOURE-LITSE, stressed.
ITC and partners to propel ‘Made in Africa’ label and boost trade under AfCFTA (New Ghana)
The Nairobi-based African Organisation for Standardisation (ARSO) and the Geneva-based International Trade Centre (ITC) today signed a memorandum of understanding (MOU) to contribute to continent-wide efforts to establish a ‘Made in Africa’ label and boost trade under the African Continental Free Trade Area (AfCFTA).
The agreement renews a working commitment between the two organizations for five years until 2028, with an updated cooperation framework reflecting developments in Africa’s regional integration efforts, underpinned by the AfCFTA, and a growing global shift towards the use of sustainability standards to demonstrate commitment to good environmental, social, ethical and food safety practices.
At the signing ceremony, ARSO Secretary General Dr. Hermogene Nsengimana said: ‘This MOU will generate greater commitment between our organizations and boost intra-Africa trade, particularly through diversified production of value-added industrial products, across all priority sectors of Africa’s economy. Together, we will accelerate standardization activities to increase the competitiveness of African enterprises, strengthen regional value chains and pave the way for Made in Africa goods and services.’
African countries must join forces to diversify energy mix through AfCFTA – Kyari (Newsdiaryonline)
Mr Mele Kyari, the Group Chief Executive Officer, Nigerian National Petroleum Company Ltd. (NNPCL), has called on African countries to take advantage of the implementation of the African Continental Free Trade Agreement (AfCFTA).
Kyari said this would help to diversify their energy sources into a sustainable and low-carbon energy mix, and ensure sustainability of the energy sector in the continent.
Kyari was represented by the Executive Vice President, Upstream, Mr Adokiye Tombomieye, while delivering a keynote address at a luncheon and panel session organised by Petroleum Technology Association of Nigeria (PETAN) at the ongoing Offshore Technology Conference (OTC), on Tuesday in Houston, Texas, United States.
He reiterated the need for African Union to adopt the African common position on energy access and equitable transition, which is a comprehensive approach that charts Africa’s short, medium, and long-term energy development pathways to accelerate universal energy access.
Lead participation, advocacy for AfCFTA – Sosu urges Africa’s youth (MyJoyOnline)
The Member of Parliament for Madina, Francis-Xavier Sosu, has urged the Youth of Africa to lead participation and advocacy for the Africa Continental Free Trade Area (AfCFTA).
Sosu said: “If the AfCFTA is to work, then the Youth must be at the forefront by way of participation and advocacy to make demands, insist on them, and drive home same for the attention of policy makers. If Africa’s Youth across the Continent decide that enough is enough and this is the way we want to go, then various Heads of States and Governments will have no choice but to provide political support and show strong commitment towards implementing the objects of the AfCFTA Agreement.”
Economic Growth in Sub-Saharan Africa Could Permanently Decline if Geopolitical Tensions Escalate (IMF)
Sub-Saharan Africa could stand to lose the most if the world were split into two isolated trading blocs centered around China or the United States and the European Union. In this severe scenario, sub-Saharan African economies could experience a permanent decline of up to 4 percent of real gross domestic product after 10 years according to our estimates—losses larger than what many countries experienced during the Global Financial Crisis.
Economic and trade alliances with new economic partners, predominantly China, have benefited the region but have also made countries reliant on imports of food and energy more susceptible to global shocks, including disruptions from the surge in trade restrictions following Russia’s invasion of Ukraine. If geopolitical tensions were to escalate, countries could be hit by higher import prices or even lose access to key export markets—about half of the region’s value of international trade could be impacted.
The losses could be compounded if capital flows between trade blocs were cut off due to geopolitical tensions. The region could lose an estimated $10 billion of foreign direct investment (FDI) and official development assistance inflows, which is about half a percent of GDP a year (based on an average 2017–19 estimate). The reduction in FDI in the long run could also hinder much-needed technology transfer.
The ECOWAS Commission organized the 3rd Joint Meeting of the ECOWAS Ministers of Trade and Industry (ECOMOTI) in Abidjan, Côte d’Ivoire from 27th – 28th of April 2023, to consider, approve and recommend key trade policy instruments to the ECOWAS Council of Ministers for adoption. The Meeting featured a round table with the World Trade Organization (WTO) to discuss the outcomes of the 12th WTO Ministerial Conference (MC12) and preparations for the MC13.
The Meeting approved and recommended to the ECOWAS Council of Ministers for adoption, the ECOWAS E-Commerce Strategy and Implementation Plan (2023 – 2027), the ECOWAS Implementation Strategy for the African Continental Free Trade Area (AfCFTA), and the Directive of Consumer Protection. Furthermore, the meeting commended the ECOWAS Commission for the progress made in the development of ECOWAS Common Trade Policy; ECOWAS Trade & Investment Promotion Strategy; and Regional Trade & Transport Facilitation Strategy. The Ministers took note of the implementation of the Informal Trade Regulation Support Programme (ITRSP) and discussed issues related to trade in Donkeys and Donkey products, gold trade, illegal trade in cash crops, as well as food insecurity.
African infrastructure is bankable, says Africa50 CEO Alain Ebobissé (African Business)
Africa50’s mandate is to help close that infrastructure gap by channelling direct public and private investment towards that purpose. Its focus is on medium to large scale projects that have the potential to deliver good returns for investors.
“The gap is huge but we are making progress,” Ebobissé says. While there are a lot of bankable projects on the continent and a wealth of capital that is seeking exactly those projects, a lot depends on how the projects are structured.
“Sometimes, when you have risks that the private sector is unable or unwilling to take, you need to have risk mitigation instruments so that you have a bankable project,” he says.
“There are differences in terms of the investment climate in different African countries,” Ebobissé accepts, “but there are a lot of success stories on the ground – some of which we have been involved in. We have to talk about those success stories; those projects that are delivering good impact and decent returns,” he urges.
Digital technologies key to inclusive growth in Africa - African Union Commissioner (AfDB)
Digital technologies could offer Africa a great chance to unlock new pathways for rapid, inclusive economic growth and job creation, according to Ambassador Albert Muchanga, the African Union’s Commissioner for Economic Development, Trade, Tourism, Industry and Minerals.
In an address to the recent 55th Conference of African Ministers of Finance, Planning and Economic Development, Muchanga said the continent needed to raise the requisite funding to develop its digital knowledge base to achieve growth.
“Mobilization of domestic resources should be prioritized with a particular emphasis on fighting illicit financial flows, which deprive the continent of approximately $90 billion annually,” he said at the conference organized by the United Nations Economic Commission for Africa (UNECA).
President Ruto calls for removal of barrier to the movement of people to boost regional integration (EAC)
The President of the Republic of Kenya, H.E. William Samoei Ruto, has called on the members states of the East African Community (EAC) and the Intergovernmental Authority on Development (IGAD) to remove barriers to the free movement of people, goods and services in order to enhance regional integration in Eastern Africa.
President Ruto said the free movement of people, goods and services was necessary for sustainable growth and development of the East and Horn of African region. The President said it is the responsibility of the member states in the region to eliminate national boundaries that have since become roadblocks and impediments to the movement of people and commodities across the region.
President Ruto was speaking during the launch of a flagship report titled ‘The State of Migration in the East and Horn of Africa’ at the Kenyatta International Convention Centre in Nairobi, Kenya. The report is the product of collaboration between the International Organisation for Migration (IOM), IGAD and EAC.
Economists divided about global economic recovery this year (Engineering News)
The continuing uncertainty of the global economic outlook is reflected in the striking spread of responses to international organisation the World Economic Forum (WEF) ‘Chief Economists Outlook’ survey, in which experts are evenly divided on the prospects for the global economy, with equal shares of 45% saying that a global recession this year is likely or unlikely.
Further, on the economic policy front, 72% predict proactive industrial policy to become an increasingly widespread phenomenon over the next three years, the WEF notes.
Meanwhile, the chief economists were unanimous in anticipating further changes in the structure of global supply chains, the WEF points out.
Respondents were, however, divided on whether industrial policy will act as an engine of innovation, but they highlighted several potential concerns, including 91% noting a deepening of geo-economic tensions, 70% pointing to the stifling of competition and 68% highlighting a problematic increase in sovereign debt levels.
Botswana President: Inclusive, sustainable trade will allow Africa to realize full potential (WTO)
The WTO should work towards creating a more inclusive trading system that ensures all members of society can benefit from the opportunities that trade provides, H.E. Dr Mokgweetsi E.K. Masisi, President of Botswana, said on 2 May at an event held at the WTO as part of the Presidential Lecture Series. In the run-up to the 13th Ministerial Conference to be held in February 2024, President Masisi called on WTO members to ensure that the concerns and interests of all developing countries, particularly those in Africa, are adequately addressed.
DG Okonjo-Iweala noted that Botswana — like most African countries — still faces serious challenges in terms of export diversification, creating jobs, improving skills for new generations and achieving growth that is both socially equitable and environmentally sustainable.
“President Masisi’s government has already started to answer these questions with its reset agenda, promoting digital technology and job creation for young people, especially through value chain development in key sectors, such as mining, tourism, agriculture and education,” she said.
DDG Ellard highlights importance of WTO work on fisheries subsidies for Africa (WTO)
Africa stands to gain greatly from strengthened ocean sustainability if the entry into force of the WTO Agreement on Fisheries Subsidies and further outcomes from the second wave of negotiations can be secured by the 13th Ministerial Conference (MC13) in February 2024, Deputy Director-General Angela Ellard said on 2 May. DDG Ellard made the remarks at a workshop on fisheries subsidies organized by the WTO for English-speaking African countries held in Zanzibar, Tanzania.
“As a continent surrounded by oceans and home to numerous fisheries, Africa is responsible for the management and conservation of a significant portion of the world’s marine resources,” DDG Ellard said. “With over 12 million people in Africa depending directly and indirectly on the marine fishing industry for their livelihoods, it is crucial that we work together toward sustainable management of our ocean resources,” she noted.
Global forum spotlights actions to make trade more sustainable and inclusive (UNCTAD)
UNCTAD will host the third UN Trade Forum on 8 and 9 May 2023 to identify trade policies that can help countries grow their economies while tackling pressing global challenges and accelerating progress towards achieving the UN’s Sustainable Development Goals
The forum will give particular attention to developing countries, which have been hit hardest by multiple global crises including the COVID-19 pandemic, the war in Ukraine and the climate emergency.
“A cascade of global crises has disrupted international trade, including for essential foods, and revealed the trading system’s vulnerabilities and imbalances,” UNCTAD Deputy Secretary-General Pedro Manuel Moreno said ahead of the forum.
“But trade remains a very powerful engine for sustainable and inclusive growth,” Mr. Moreno said. “And UNCTAD remains committed to providing the data and analysis policymakers need to take informed decisions and ensure trade growth benefits all people and the planet.”
Higher global wheat price looms as UN, Russia deal uncertain (The East African)
Kenya is staring at elevated wheat prices in the coming months should Russia fail to renew a United Nations-brokered deal on grain passage along the Black Sea this month (May).
Russia said it would not renew the Grain Initiative deal, first reached last year if the US and European Union did not lift the sanctions they have slapped on Moscow.
The current deal, which allows grain from Ukraine to pass through the Black Sea Channel, is due to expire on May 18.But Russia has repeatedly said it will not permit the deal to be extended unless the West removes obstacles to Russian grain and fertiliser exports.
Kenya, which imports up to 75 percent of the annual wheat requirement, has exhausted the local stocks and is currently relying on imports to meet the growing demand for the grain in the country.
Russia and Ukraine account for over a third of the world’s total wheat with any disruption in supply having serious ramifications on countries that rely on imports to bridge their deficit.
Regional integration is key to economic growth. Here’s why (WEF)
Against a backdrop of global fragmentation, inflationary pressure and geopolitical unrest, many countries are pursuing efforts to deepen regional economic integration.
Regional integration was a major topic of the World Economic Forum’s Growth Summit 2023, which took place at the Forum’s headquarters in Geneva, Switzerland, between 2-3 May.
In a session titled Regional Trade and Cooperation in a Fragmenting World, top business and trade officials discussed how best to foster regional trade and explored how regional cooperation can bolster the global economy. For panellists, the message was clear: to avoid a lost decade, economies must preserve and expand international trade.
South African business community expects BRICS summit to enhance trade (Xinhua)
BRICS countries (Brazil, Russia, India, China and South Africa) are expected to discuss measures to relax some trade hindrances, increase trade among member states and promote post-pandemic economic recovery, said Ayanda Ntsaluba, an official from the South African Chapter of BRICS Business Council, Tuesday.
Ntsaluba told Xinhua in an interview that they have been engaging with business councils from other BRICS countries on the ideas, and have invited leaders from regional economic communities to meet with the BRICS leaders to discuss business.
Bilateral trade between South Africa and China as well as that between South Africa and India have shown impressive growth, he noted, adding that they would like to further strengthen relatively low trade with Russia and Brazil.
Ntsaluba said they would like to explore how to increase the export of South African beef, grapes and wines to China and other BRICS countries.
Rich nations to meet overdue $100bn climate pledge this year (Engineering News)
Wealthy nations are on track this year to meet their overdue $100-billion (about R1.8-trillion) climate finance pledge to developing countries, three years later than promised, Germany’s foreign minister Annalena Baerbock said on Tuesday.
Baerbock said donor countries met on Monday to discuss progress towards their pledge, made back in 2009, to transfer $100-billion per year from 2020 to vulnerable states hit by increasingly severe climate change impacts.
Uncertainty in Preferential Trade Agreements: Impact of AGOA Suspensions on Exports (World Bank)
This study examines the impact of the abrupt suspension of African Growth and Opportunity Act benefits on exports from eligible African countries. The study uses a triple difference-in-differences estimation that controls for both country- and product-level export changes. The results suggest that the suspension of the African Growth and Opportunity Act has had a considerable negative impact on the level of exports to the United States. The impact appears to be bigger for countries with a high African Growth and Opportunity Act utilization rate.
The suspension is associated with a 39 percent decline in exports to the United States. At the product level, the suspension hurt apparel and textile exports, leading to a decline of their exports by about 88 percent. Understanding the impact of withdrawing access to a nonreciprocal trade agreement is particularly important now, as the European Union began negotiating Economic Partnership Agreements with African countries, as a sign of a shift to reciprocity; the United States is considering a similar path of negotiating free trade agreements with individual African countries. These developments underscore the need to prepare for a post–African Growth and Opportunity Act period with more reciprocity, as trade uncertainty is becoming rampant.
Air Cargo Declines Moderate in March (IATA)
The International Air Transport Association (IATA) released data for March 2023 global air cargo markets showing a continued decline against previous year’s demand performance. This trend began in March 2022.
“Air cargo had a volatile first quarter. In March, overall demand slipped back below pre-COVID-19 levels and most of the indicators for the fundamental drivers of air cargo demand are weak or weakening. While the trading environment is tough, there is some good news. Airlines are getting help in managing through the volatility with yields that have remained high and fuel prices that have moderated from exceptionally high levels. Looking ahead, with inflation reducing in G7 countries policy makers are expected to ease economic cooling measures and that would stimulate demand,” said Willie Walsh, IATA’s Director General.
African airlines saw cargo volumes decrease by 6.2% in March 2023 compared to March 2022. This was an improvement in performance compared to the previous month (-7.4%). Notably, Africa to Asia routes experienced significant cargo demand growth in March.
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Trade Statistics for March 2023 | South African Revenue Service
South Africa recorded a preliminary trade balance surplus of R6.9 billion in March 2023. This surplus is attributable to exports of R192.2 billion and imports of R185.3 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN).
The year-to-date (01 January to 31 March 2023) preliminary trade balance deficit of R6.2 billion is a deterioration from the R61.9 billion trade balance surplus for the comparable period in 2022. Export flows for March 2023, at R192.2 billion, were 3.2% higher compared to March 2022 (R186.3bn) whilst import flows were 30.9% higher having increased from R141.5 billion in March 2022 to R185.3 billion in the current period.
Tunisia: Textile and apparel exports post 16.78% rise in Q1 2023 (ZAWYA)
Textile and apparel exports grew 16.78% during the first quarter of 2023, to TND 2,626.6 million, the Ministry of Industry, Mines and Energy said on Wednesday. In euro terms, the growth of exports in this sector reached 14.61% compared to the same period of 2022, to €788.3 million, or an estimated coverage rate of 145%.
These results exceeded the value of exports achieved in the same period of 2019 (before the COVID-19 pandemic), by 22.11% in dinars (TND 2,151.1 million) and 26.64% in euros (€622.5 million).
Exports went up by 16.72% to 926.4 million dinars in March 2023. In euros, the increase reached 14.38% to €278.2 million.
Africa can be solution to world’s net zero ambition, says Osinbajo (TheCable)
Vice-President Yemi Osinbajo says Africa has the potential to become the solution to the net zero ambition of the world.
Speaking on Sunday, in Nairobi, Kenya at a meeting tagged ‘Africa-Europe Earthshot: 2023 Milestone Map’, Osinbajo said he endorses the idea of setting the agenda for the Africa-Europe cooperation on just energy future.
The theme of the meeting was “Unlocking Investment for a Just Energy Future.’’
“I think that agenda is important — the climate positive growth agenda — that we have heard. And I think in the past couple of days, it has been exciting to hear President William Ruto speak so eloquently and so articulately,” Osinbajo said.
Indonesia and Kenya set to recover their lost trade revenue (Business Insider Africa)
This comes after its commerce with Kenya decreased in value in 2022 from $560 million (76.2 billion sh) to $501 million (Sh68.2 billion). The Indonesian Embassy claims to diversify its shipments into the Kenyan Market from conventional palm oil to increase these earnings.
The decline in trade value was ascribed to COVID-19, which paralyzed shipping and transportation. According to Rendra Kusumawardana, the Secretary of Economic Affairs at the Indonesian Embassy, the Asian nation will seek to boost its exports in the food and beverage sector.
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.”
The trade partnership between the US and Africa has been strengthening for some time. In July 2021, the Biden Administration announced that it would renew the US Prosper Africa initiative, started in 2019, with a focus on increasing reciprocal trade and investment between the US and African countries. At the time, the US said that the initiative would focus on improving trade and investment in sectors such as infrastructure, energy and climate solutions, healthcare and technology. Seventeen US government agencies working as part of this initiative were given a mandate to, among other things, empower African businesses, offer deal support and connect investors from the US with those in Africa. The renewed Prosper Africa initiative also focuses on projects that support women, and small and medium enterprises in Africa. It was further announced at the December 2022 Summit that, through the Prosper Africa initiative, plans were being made to boost African exports to the US by USD 1 billion through investments and partnerships, and to mobilise an additional USD 1 billion in US investment in Africa.
Ports are key to Africa’s global trade promise (Semafor)
South Africa was the only African country to rank among the Top 20 countries on the World Bank’s Logistics Performance Index, which is dominated by European countries, the United States and China.’
The ports at Africa’s most advanced economy compared favorably with some wealthier countries where the average dwell time for containers between May and October 2022 was three days for India and Singapore and four for the United Arab Emirates and South Africa but seven for the United States and 10 for Germany.
On average it about 5.3 days (including processing time) to get a container through a South African port according to the report. It takes fewer days in Mauritius (4.3 days) but South Africa does better overall on the index because of superior infrastructure, customs processes, and logistics processes. HighlightTrack This PhraseMute This PhraseSearch FeedlyTweet (327 chars)Post to WordPressClip to EvernoteSave to OneNoteSearch Google38 duplicates removed
PAPSS and ASEA forge strategic partnership to revolutionize cross-border payment of Stock Exchanges in Africa (Afreximbank)
The Pan African Payment and Settlement System (PAPSS) and the African Stock Exchanges Association (ASEA) have signed a Memorandum of Understanding (MoU) to enhance collaboration and cooperation in promoting cross-border payments of Capital Markets infrastructure in Africa. The MoU was signed on 14 April 2023 during the ASEA 2023 Building African Financial Markets Seminar held in Victoria Falls, Zimbabwe, which brought together Stock Exchanges and capital markets stakeholders from across Africa to discuss ways to deepen integration and connectivity of African capital markets.
For a long time, investors doing business in Africa have struggled with making and settling cross-border payments. Payments take a long time to complete, are expensive since the existing environment necessitates the use of correspondent banks outside of the continent, and are done in foreign currencies (USD or Euro). Because of this, African Export and Import Bank (Afreximbank) and the African Continental Free Trade Area (AfCFTA) Secretariat developed PAPSS, which enables instant cross-border payment in local currency.
Experts move for improved local manufacturing of drugs (The Guardian Nigeria)
Experts have called for boost in local production of drugs to strengthen Nigeria’s healthcare system.
Permanent Secretary, Federal Ministry of Health, Mahmuda Mamman, led the call at the launch of Nigerian Pharmaceutical Manufacturers’ Quality Improvement and Capacity Building, a World Health Organisation (WHO) Pre-Qualification programme, in Lagos.
Mamman advised pharmaceutical manufacturers to leverage the project to increase their capacities for local manufacturing, thereby, strengthening the health system for better epidemic preparedness and response.
Measuring the value of E-commerce (UNCTAD)
Producing statistics on the digital economy and society is an increasingly important component of the work programme of national statistical organizations. The demand for such statistics continuously rises as more countries seek to design, monitor and review national policies and strategies to take advantage of information and communications technologies (ICTs).
One area in which there is very limited information available concerns the monetary value of e-commerce transactions. Measuring this has become increasingly important, not least as a result of the COVID-19 pandemic during which a shift to making online purchases supported economic resilience.
Better statistics on the value of e-commerce are needed to understand its economic role and contributions to GDP, employment and development, as well as for evidence-based policymaking. Because of this, UNCTAD member states have indicated that developing guidance and support on measuring e-commerce is a key priority.
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United Republic of Tanzania; 2023 Article IV Consultation IMF)
Spillovers from the war in Ukraine and shortfalls in rainfall stalled Tanzania’s recovery from the COVID-19 pandemic. Despite fuel and fertilizer subsidies, inflation has picked up in recent months, approaching the Bank of Tanzania’s target. External balances deteriorated significantly last year due in large part to spillovers from the war in Ukraine.
US partners with Kenya in Trade, Investment (Capital News)
Foreign and Diaspora Affairs CS Dr. Alfred Mutua has encouraged Kenyans to apply for jobs in the United States of America (USA). Dr. Mutua said the US is setting up a framework to allow Kenyans to apply for jobs and to get work visas on time.
“The United States is working on modalities to speed up visa processing at the Nairobi embassy to reduce the long waiting times,” he said. The CS is in Washington DC in United States of America attending a bilateral session for negotiations on the Kenya-United States of America Strategic Trade and Investment Partnership accompanied by the Cabinet Secretary for Investment, Trade and Industry Moses Kuria and other senior government officials.
He said the two countries have agreed to partner in the areas of trade and investment for job creation and visas for youth empowerment, health, food security, climate change, regional peace and security.
Kagame in Tanzania in effort to improve trade ties (The Citizen)
Tanzania and Rwanda are on the move to push forward new trading strategies as both countries’ leaders agree that the current value and volume don’t reflect the scope of resources available.
Tanzania is among Rwanda’s top importers at $154.93 million, behind only China, whose imports were valued at $197.58 million as of 2021, according to the National Institute of Statistics of Rwanda. The value of goods and services re-exported from Rwanda to Tanzania as of 2021 was tabled at only $1.58 million at the end of 2021.
“We have agreed to improve the communication and transport networks, such as the ports of Dar es Salaam and Tanga, where Rwanda is among the major customers,” she said.
Federal Govt Raises Import Tariff On Rice, Wheat (Leadership News)
The Federal Government has revised Import Adjustment Tax (IAT) for Implementation of ECOW CET (2022-2026), raising tariffs on importation of rice as well as wheat. The 2023 revised document, raised tariff on rice packing of more than 5kg or in bulk and in packing of 5kg or less to 60 per cent from 50 per cent.
Similarly, importation of wheat or meslin flour now attracts 70 percent tariffs as against 50 in 2022-2026 ECOWAS CET. This was stated in a document by the Minister of Finance, Zainab Ahmed.
The document titled ‘Revised Import Adjustment Tax (IAT) for Implementation of ECOW CET (2022-2026), 2023 fiscal policy measures, according to reported by BusinessDay.
Nigerians q1 non oil export hits 1 345b (The Nation Online)
The Nigerian Export Promotion Council (NEPC) said put the country’s non-oil exports in the first quarter (Q1) of this year at S$1.345billion. Its Executive Director/CEO, Dr Ezra Yakusak disclosed this at the presentation of the Q1 progress report on the non-oil export performance for this year in Abuja, stating that a total of 167 products were exported during the period under review.
Yakusak said products exported ranged from manufactured, semi-processed, solid minerals and raw agricultural commodities adding that just like last year, Q1 also showed that Nigerian products are gradually shifting from its traditional export of raw agricultural commodities to the export of semi-processed and manufactured goods.
He noted that in the 2022 non-oil export performance which was presented in January 2023, the Council recorded the highest export value since it was established 47 years ago. The sector recorded a significant milestone as the non-oil export trade worth $4.820 billion was recorded for the year, representing an increase of 39.91per cent over 2021 export value.
Africa Trade barometer report shows promising growth in trade – Stanbic IBTC (The Nation Online)
Stanbic IBTC Holdings, a member of Standard Bank Group has shared some of its latest findings from the Africa Trade Barometer report 2022 released recently. The report, which assesses key economic indicators in Africa highlights several noteworthy developments across 10 African countries.
According to the report, Nigeria is placed eighth out of the ten countries on the Africa Trade Barometer (ATB) after dropping one position (sixth to seventh place) on the Qualitative Trade Barometer (QTB) rankings and gaining two places (10th to eighth position) on Survey Trade Barometer (STB), which was driven mainly by directional improvements in the trader’s financial behaviour.
Nigeria’s economic growth has largely recovered after the 2020 recession (primarily brought about by the COVID-19 pandemic). The projected economic growth (3.2% in 2022-2024) is average.
The report also identified an increased trade openness across the continent. Various regional and multilateral agreements have facilitated this positive trend, reducing trade barriers and improving market access. Nigerian firms have become more optimistic about prospects for importing and exporting, a significant increase in importing and a directional increase in exporting.
“The Africa Trade Barometer report 2022 identifies several positive developments, challenges, and how to scale up a business in Nigeria’s trade sector. These developments demonstrate the country’s resilience and potential for growth and should encourage investors to explore opportunities in the region,” Head, Business and Commercial Clients, Stanbic IBTC Bank, Remy Osuagwu, added.
Africa CDC hosts the Partnerships for African Vaccine Manufacturing (PAVM) Forum (Africa CDC)
Her Excellency the Deputy Chairperson of the African Union Commission Dr. Monique Nsanzabaganwa opened the Partnerships for African Vaccines Manufacturing (PAVM) Forum at the African Union Commission Headquarters in Addis Ababa, Ethiopia.
The Partnerships for African Vaccine Manufacturing (PAVM) was established by the African Union (AU), under the Africa CDC, in 2021 to deliver a bold goal: enable the African vaccine manufacturing industry to develop, produce, and supply over 60 percent of the total vaccine doses required on the continent by 2040, up from less than 1 percent. The Continental Framework for Action (FFA) was developed and endorsed during the 40th Ordinary Session of the Executive Council and lays out the key interventions required to enable the development of a sustainable vaccine manufacturing industry in Africa.
The PAVM Forum saw the participation of the African Union Member States, African Manufacturers, National Regulatory Agencies (NRAs), Partners and donors with an objective of providing updates on the Progress achieved under the PAVM Initiative, a thorough review of the eight bold programs, highlight new priorities, outline areas for continued collaboration and support, and interact with member states, manufacturers, funders, and other partners on their priorities.
Informal cross border trade in Africa is known to be large and an important contributor to the livelihoods of millions of Africans but there are no agreed methods to accurately measure it, experts said at the first physical meeting of the Task Force on developing a harmonized methodology for Informal Cross-Border Trade Data Collection.
“Understanding the scale, magnitude and characteristics of Informal Cross-Border Trade (ICBT) will be instrumental in accurately monitoring intra-African trade, as well as the development of appropriate economic policy,” said Melaku Geboye Desta, Coordinator of the African Trade Policy Centre (ATPC) at the Economic Commission for Africa (ECA), at the opening of the meeting of the Task Force in Kampala, Uganda.
EAC grain traders meet (Kenya News Agency)
Stakeholders trading on cereals in the East African Community region have converged in Kenya for a two day meeting to brainstorm on issues affecting the sector in the wake of acute deficit of the commodity.
The meeting that has brought governments officials, farmers and the business community from Kenya, Uganda, Tanzania, Rwanda, Burundi , Botswana, Zambia and DRC are set to propose ways of unlocking the bottlenecks and come up with interventions that will promote seamless grain food trade across the re to spur development.
Speaking during the forum ,East African Grain Council (EAGC) Gerald Masila said that trading in the region is mostly informal with approximately two-thirds of food trade done through informal channels.
Zambia to Host the 22nd COMESA Summit in June (COMESA)
The Government of the Republic of Zambia has announced that it will this year host the 22nd COMESA Heads of State and Governments Summit on 8 June in the capital Lusaka. The Summit will be preceded by the Meeting of the Committee of Ministers of Foreign Affairs on 6 June and the COMESA Business Forum and Exhibition on 7 June 2023.
The Summit follows the COMESA Policy Organs meetings of the Intergovernmental Committee and Council of Ministers which were held in Lusaka in December 2022.
Zambia’s Minister of Commerce, Trade and Industry Hon. Chipoka Mulenga and Secretary General Chileshe Mpundu Kapwepwe revealed this on Tuesday 25 April 2023 in Lusaka during the signing ceremony of the Agreement for the Hosting of the COMESA Heads of State and Government Summit. The meetings shall be held at the Kenneth Kaunda wing of the Mulungushi International Conference centre.
On the occasion of its Annual Meetings, to be held from 22 to 26 May 2023 in Sharm el Sheikh, Egypt, the African Development Bank Group plans to highlight the role that multilateral development banks could play in building a new development architecture beyond the financial.
The importance of this subject stems from the fact that multilateralism is currently facing significant challenges, including in responding to climate change, conflict, social fragility, and pandemics. International organizations should maximize their resources by engaging governments, the private sector, and other stakeholders to bring about meaningful change. If this is not done, less-developed economies could become more vulnerable.
From a development-financing perspective, a vital issue to be addressed at the Annual Meetings is reducing the current level of concentration of policy instruments and promoting inclusion and better coordination among multilateral development banks.
Harness diaspora resources for development, Buhari urges African countries (Tribune Online)
President Muhammadu Buhari has urged African countries to harness human and material resources of the DiasporaThis, he said, would enable them to become forces to be reckoned with in regards to sustainable development of their homelands, regional bodies, and national governments.
Buhari, who was represented by the Minister of Transportation, Mu’azu Sambo made call in his keynote address at the Global African Diaspora Symposium (GADS) which was held in Abuja.”This could be done through remittances, medical missions, educational visits, tourism, investments and enterprises, among others.
Commodity Prices to Register Sharpest Drop Since the Pandemic (World Bank)
Global commodity prices are expected to decline this year at the fastest clip since the onset of the COVID-19 pandemic, clouding the growth prospects of almost two-thirds of developing economies that depend on commodity exports, according to the World Bank’s latest Commodity Markets Outlook report.
The drop in prices, however, is expected to bring little relief to the nearly 350 million people across the world who face food insecurity. Although food prices are expected to fall by 8% in 2023, they will be at the second-highest level since 1975. Moreover, as of February this year, annual food price inflation is at 20% globally, the highest level over the past two decades.
“The surge in food and energy prices after Russia’s invasion of Ukraine has largely passed due to slowing economic growth, a moderate winter, and reallocations in the commodity trade,” said Indermit Gill, the World Bank’s Chief Economist and Senior Vice President for Development Economics. “But this is of little comfort to consumers in many countries. In real terms, food prices will remain at one of the highest levels of the past five decades. Governments should avoid trade restrictions and protect their poorest citizens using targeted income-support programs rather than price controls.”
Small business group appoints new coordinator, discusses digitalisation, finance and standards (WTO)
The Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs) on 26 April discussed the benefits of digitalisation for small business, the role of intellectual property rights in facilitating small business access to finance, and how MSMEs deal with sustainability standards.
The Group on the G20’s work on MSMEs’ access to information, finance and markets.
The Group appointed Ambassador Matthew Wilson of Barbados as its new coordinator. The outgoing coordinator, Ambassador José Luís Cancela (Uruguay), drew attention to the achievements of the Group, particularly the 2020 package of recommendations aimed at helping small businesses trade internationally.
He also highlighted the establishment of databases of MSME provisions in trade agreements and in trade policy reviews and the Trade4MSMEs platform, which provides a gateway to MSME trade information. “This is an impressive number of deliverables and I know that the Group will continue to explore new areas of work and to think outside of the box on what it can do going forward,” he said. “The MSME Group is now at 98 members, covering roughly 90 per cent of global trade, and I know that the spirit of inclusivity and openness will bring others on board,” he added.
Director-General Okonjo-Iweala urges ECOWAS to harness trade for sustainable growth (WTO)
Dr Abas Jalo, Minister of Trade and Industry of Guinea Bissau and Chair of the meeting, stressed the need for ECOWAS member countries and the WTO to focus on implementing the outcomes of the 12th Ministerial Conference (MC12) and to engage in a dialogue on how African member countries can best contribute to the success of the 13th Ministerial Conference (MC13) to be held in Abu Dhabi in February 2024.
The Director-General highlighted the potential for West Africa to benefit from reglobalization and the diversification of global supply chains. The war in Ukraine and the COVID-19 pandemic have highlighted risks linked to excessive concentration in global supply networks. This could provide opportunities for supply chain investment in West Africa, she added.
WTO members praise value of capturing lessons learned from COVID-19 pandemic (WTO)
At a meeting of the Committee on Market Access on 26-27 April, WTO members adopted a document reflecting lessons learned from trade in COVID-19 related goods and indicating practices members might want to consider in the event of future emergencies. Members were updated on the notification of quantitative restrictions (QRs) and addressed a high number of trade concerns.
The Committee document on lessons learned ( G/MA/409 ) is the result of the six experience-sharing sessions held since March 2022 where members exchanged information and practices on the measures they implemented on trade in COVID-19 related goods within the mandate of the Committee. The Chair of the Committee, Kenya Uehara, echoed “the general sentiment that the Committee on Market Access (CMA) experience-sharing sessions on trade in COVID-19 related goods have been very useful for members to better understand how we have collectively reacted during this unprecedented situation and also how we could do better in the future.”
DDG Ellard urges parliamentarians to deepen support for WTO, ratify Fisheries Agreement (WTO)
The second strand of ongoing work on fisheries is continuing negotiations to resolve the outstanding issues that could not be agreed at MC12, which include disciplining subsidies that contribute to overcapacity and overfishing, along with appropriate and effective special and differential treatment for developing and least-developed Members. To the contrary, now that the Agreement is concluded, WTO Members are engaged in two parallel processes to carry the work forward.
More members will expand BRICS’ influence (Chinadaily.cn)
The appeal of the BRICS organization is more evident than ever before. Reportedly, 19 countries from around the world have expressed an interest in joining the group as members or observers.
Over the past 10 years, BRICS has grown in success and its influence has been widely recognized. Joining it means more opportunities for development.
The multilateral development bank established by the BRICS members, the New Development Bank, headquartered in Shanghai, is a meaningful platform for BRICS and other countries to make better use of their financial resources to address development deficits, reducing their dependence on the US dollar and providing them more financial autonomy.
As such, an expanded BRICS means greater international influence and a bigger say in global rule-making for developing countries.
It is projected that the BRICS countries will collectively contribute about 32.1 percent of the world’s economic growth this year, compared with the G7’s 29.9 percent. The International Monetary Fund predicts that the two figures will become 33.6 percent and 27.8 percent respectively by 2028 when BRICS’ share in the world’s gross domestic product will reach about 35-40 percent and that of the G7 about 27.8 percent.
These are the world’s biggest trading blocs (WEF)
Rising levels of world trade have been a powerful means for countries to promote economic growth, development and poverty reduction, according to the International Monetary Fund (IMF).
“Policies that make an economy open to trade and investment with the rest of the world are needed for sustained economic growth. The evidence on this is clear,” the IMF says. “No country in recent decades has achieved economic success, in terms of substantial increases in living standards for its people, without being open to the rest of the world.”
However, trade has been dented by the COVID-19 pandemic and its economic aftershocks.
“There is a widening chasm between the prospects of advanced economies and developing and emerging economies that had previously counted on globalization-enabled growth,” says the overview for the World Economic Forum’s 2023 Growth Summit.
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SA Committed to Speedily Finalising Electric Vehicle Policy – Deputy Minister Gina (the dtic)
The Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina says government is committed to finalising with speed, the development of South Africa’s Electric Vehicle Policy, working with all critical industry players.
She was speaking at the grand opening of the Daimler Truck Southern Africa (DTSA) headquarters in Centurion, Pretoria. The 11 hectare newly refurbished campus not only serves as headquarters, but accommodates a training centre, used and new vehicle retail facilities, in addition to a fully fledge dedicated Daimler Truck Financial Services company.
The new premises came as a result of R190 million pledge made by the company at the 4th South African Investment Conference in 2022. The investment amount was split between Centurion Campus and improvements at the company’s East London plant.
“Our approach of working with the industry associations like the National Association of Automobile Manufacturers of South Africa (NAAMSA) on this policy framework will continue to the end. We all feel the pressure to move with speed so that we are not overtaken by other markets still at their foundation phase, like us. We all agree that the maturity of our South African automotive sector locates it at a vantage point to be part of the leaders in EVs, including component manufacturers. We therefore appeal for partnership and cooperation as we increase our speed to finalise strategic policy areas,” she said.
South Africa expects post-Covid increase in emissions, following 20-year decline to 2020 (Engineering News)
South Africa‘s net greenhouse-gas (GHG) emissions decreased marginally by about 0.8% between 2000 and 2020, the eighth National Greenhouse Gas Inventory Report (NIR), released by Forestry, Fisheries and the Environment Minister Barbara Creecy on April 26, shows.
Net GHG emissions in carbon dioxide (CO2) equivalent were 446-million tonnes in 2000 and declined to 442-million tonnes in 2020.
However, in the period between 2017 and 2020, net GHG emissions declined by 5.9%, primarily as a result of the Covid-19 pandemic.
Power generation; transport; industrial fuel use; fugitive emissions from processing of fuels; livestock and waste management are the biggest sources of GHG emissions in South Africa.
Egyptian-African trade exchange hit $2.117bln in Q1 2023 (ZAWYA)
Trade exchange between Egypt and the markets of the African continent amounted to about $2.117 billion during the first quarter (Q1) of this year, MENA News Agency reported on April 26th, citing the Egyptian Trade and Industry Minister Ahmed Samir. The minister added that Egyptian exports to African markets reached $1.611 billion, while imports amounted to $506 million.
Samir said that the ministry is currently working to achieve economic integration among the countries of the African continent to overcome obstacles that may hinder joint trade movement.
Namibia: Locals to fund most of current year’s deficit (The Namibian)
The government this year intends to borrow over 70% of its N$10,08 billion funding requirement from the domestic market, which will largely be sourced from pension funds and the banking industry.
The Bank of Namibia late last week released the borrowing calendar and strategy for the country for the 2023/24 fiscal year, which shows that the year’s funding requirement will be sourced through a combination of domestic market funding (N$7,37 billion) through different debt instruments covering the short, medium and long term.
The 2023/24 fiscal strategy estimated a budget deficit balance of N$9,1 billion, which is further expanded by N$937 million. The remainder (N$2,70 billion) will be financed by external borrowing through external lenders.
Kenya, Botswana explore ways of deepening relations for mutual benefit (KBC)
Deputy President Rigathi Gachagua Monday held bilateral engagements with the President of the Republic of Botswana Dr Eric Mokgweetsi Masisi at the Office of the President in Gaborone.During their meeting, the two parties discussed a number of issues aimed at deepening relations for mutual benefit of their people.
Key among the issues was inter-state agreements to increase trade volumes under the frameworks of the African Continental Free Trade Area Agreement (AFCFTA), Tripartite Free Trade Area Agreement, among others.
Zimbabwe: US$101m investment jump starts industry (The Herald)
At least US$101 million was invested into Zimbabwe’s manufacturing sector, with companies expanding their capacities by up to 30 percent in 2022, a Cabinet minister has said.
This saw capacity utilisation increasing to 63 percent from 56 percent in 2021 while shelf occupancy of locally manufactured goods has increased to about 80 percent, Industry and Commerce Minister Dr Sekai Nzenza said while addressing the International Business Conference Session at the ongoing Zimbabwe International Trade Fair in Bulawayo.
The conference was held under the theme “Glocalisation: Celebrating Zimbabwe’s Success and Unlocking Economic Growth Opportunities”. Zimbabwe’s context of ‘glocalisation’ strategy entails combining ‘globalisation’ and ‘localisation’. Export of manufactured goods increased by 12,9 percent from US$324 million in 2021 to US$366 million in 2022.
The African Development Bank has signed a $525,000 grant agreement with Africa Fintech Network (AFN) for the setup of the Africa Fintech Hub, an online portal that will serve as a one-stop shop for all fintech activities in Africa. The agreement was signed on 4 April 2023.
The Africa Digital Financial Inclusion Facility (ADFI) will provide funding and technical assistance to the Africa Fintech Network to host and manage the African Fintech Hub. The hub is a digital platform that will enable fintech associations across Africa to pool resources and knowledge, strengthen relationships and partnerships, as well as showcase the work of fintech on the continent, including those which are female-led or owned.
Egypt’s exports to Sudan increase by 12.4% in 2022 despite economic challenges: FEDCOC (ZAWYA)
Chairperson of Supply and Internal Trade Committee at the Federation of Chambers of Commerce Matta Bishai said that Egypt is keen on stabilizing the situation in Sudan, added that Egypt’s exports to Sudan have increased by 12.4% over the past year on an annual basis, according to data issued by the Central Agency for Public Mobilization and Statistics.
Bishai noted that the Egypt’s exports to Sudan amounted to approximately $929.2m in 2022, compared to $826.8m in 2021, explaining that there is an opportunity for Egypt to enhance its exports to Sudan and African countries, especially in light of road infrastructure that Egypt has developed to link and enhance its trade with countries of the African continent.
Malawi minister calls for enhanced regional integration to address energy hurdles (Capital Radio Malawi)
Minister of Energy Ibrahim Matola is challenging African countries to trust in their own human capital such as engineers when addressing challenges affecting the sector. Speaking at the 9th edition of Mozambique Mining and Energy Conference and Exhibition, Matola hinted that it is time to encourage regional integration while also focusing on developing local solutions within member countries .
“Such collaborative efforts are necessary since common problems cannot be resolved independently without proper cooperation among African countries,” Matola said.
The Director General of the World Trade Organisation, Dr. Ngozi Okonjo-Iweala, has commended Ghana’s robust and visionary efforts to digitalise broad aspects of the country’s economy and the entire E-commerce architecture describing it as the future of trade.
Describing digital trade as the “wave of the future”, DG Okonjo-Iweala, said such vibrant activism by countries like Ghana has informed the WTO to begin negotiating an E-commerce agreement that will decide the rules of digital trade.
Interacting with the President, Dr Ikonjo-Iweala said, “total global trade is about 31 trillion dollars. Of that, goods/merchandise trade is 25 trillion and services at 7 trillion. Within that services, digital services trade is growing the fastest, at about half of it, which is 4 trillion. And it’s growing rapidly at 8 percent per annum compared to the goods trade.”
As a result of this encouraging trend, she continued, “we are thinking that this is an area where our countries can benefit, and when we look, Ghana, as we mentioned to the Hon Minister in the morning, seems to be doing well providing some digitally traded services and professional services in business outsourcing.”
How EAC member states lost $79 billion to Covid-19 pandemic (The Citizen)
The East African Community (EAC) bloc lost between $37 billion to $79 billion in revenue due to the outbreak of the Covid-19 pandemic, it has been revealed.
The pandemic led to reductions in household income and disruptions of supply chains of tradable goods and services, a senior EAC secretariat official has said. Most affected areas were the aviation, tourism and hospitality industries, whose value chains were rendered dysfunctional.
“The Covid-19 pandemic hit the region hard,” said the EAC director of Social Sector Dr Irene Isaka at the end of a technical meeting on disease control. The pandemic, she said, also highlighted several structural and health systems challenges which called for strengthening of the key pillars of regional health systems.
CEMAC suffered a 17.9% drop in the prices of energy exports in Q1 2023 (Business in Cameroon)
The prices of energy products exported by Cemac countries during the first quarter of 2023 fell by 17.9% QoQ, the Composite Commodity Price Index (ICCPB) published by the Central Bank Beac showed.
The decline, Beac points out, is due to a rather gloomy global oil and gas market. “The price of an oil barrel fell by 7.3% over the period reviewed, after an 11.6% reduction in the previous quarter. In addition, the prices of natural gas shrunk by 37.6%, compared with 29.1% previously. Between Q4 2022 and Q1 2023, oil prices fell from $85.3 to $79 per barrel and gas prices from $28.6 to $17.9 per MMBtu of gas.
Beac found many reasons behind this price drop. They include the abundance of global supply, coupled with the strong dynamic of Russian exports, and the tightening of monetary policies in many countries, which is weighing on demand and exerting downward pressure on prices since the end of 2022.
Population dividend primes Africa for digital economy (The Chronicle)
AFRICA must leverage its huge population dividend to advance digitalisation and boost Intra-African trade, a vital component for economic growth, Smart Africa director general and chief executive officer, Mr Lacina Koné, said yesterday.
He said a wide range of international organisations and partners such as the Africa Union, the World Bank, the United Nations, the International Telecommunications Union and Smart Africa are positioned to support the development of digitalisation in Africa, but African integration remains so far limited.
“Intra-African exports are merely 16,6 percent of total exports, compared with 68,1 percent in European Union, 59,4 percent in Asia and 55,0 percent in America. “Additionally, Africa is the continent with the lowest internet penetration rate at 39 percent of the population, compared to a global average of nearly 60 percent. “What’s good about a digital market size of 1,4 billion people, if half of this market does not have access to the internet? It becomes a digital market of 700 million people,” he said.
Communication MoU to spur Africa’s digital growth (The Chronicle)
THE Smart Africa and African Continental Free Trade Area (AfCFTA) secretariats today signed a memorandum of agreement in Victoria Falls that seeks to enhance collaboration in information, communication and technology to develop a Single Digital Market for Africa under the AfCFTA.
Smart Africa Director General and chief executive officer, Mr Lacina Koné and Secretary General of the African Continental Free Trade Area (AfCFTA Secretariat Wamkele Mene signed on behalf of the two institutions.
The agreement will see them cooperate mainly in the areas of technical support to the development and implementation of the AfCFTA Protocol on Digital Trade, cooperation in work related to digital transformation and promotion of digital financial inclusion.
Connect Africa Symposium roars to life at ZITF (The Chronicle)
ALL is set for the Connect Africa Symposium being held today on the sidelines of the 63rd edition of the Zimbabwe International Trade Fair in Bulawayo. African Continental Free Trade Area secretary general His Excellency Wamkele Mene is expected to deliver the keynote address.
The symposium is running under the theme: Unlocking Africa’s Potential: Innovation, Competitiveness and Sustainable Development.
The symposium will also cover issues to do with collaborations, a sustainable approach to development aid where Lands, Agriculture, Water, Fisheries and Rural Development Minister Dr Anxious Masuka is expected to present.
EABC urges EAC states to reduce cost of digital tax stamps (The Independent Uganda)
The East African Business Council (EABC) has called for a review and reduction in the cost of the Digital Tax Stamp system, which has been implemented in the region to improve revenue collection on excisable goods. The regional body is urging the East African Community states, through the revenue authorities, to take quick action to reduce Digital DTS costs by reviewing existing DTS contracts with a view to reducing the high excise stamp fees imposed on manufacturers.
This follows a recent EABC analysis that showed that despite the solution provider of DTS being the same across the region, the cost of the stamp differs significantly in each country.
The stamp fee is an additional to the excise duty tax payable under the country’s respective Excise Act – which EAC claims is equivalent to double taxation for manufacturers.
Boosting international trade – How SWIFT payments empower SMEs for AfCFTA (MyJoyOnline)
In today’s globalised world, the need for swift and secure payments of goods and services has become more important than ever. SWIFT payments have emerged as a reliable and efficient way to make payments within and across borders, and they have become a preferred option for many consumers and businesses alike.
SWIFT stands for Society for Worldwide Interbank Financial Telecommunication and is a network that connects banks and other financial institutions across the world. The network provides a secure and reliable platform for the transfer of funds between banks, making it a popular choice for international payments for goods and services. SWIFT payments, therefore, refers to an international messaging system used by banks and other financial institutions to securely exchange sensitive payment instructions related to international trade and money transfers.
Payments made through the SWIFT network typically take only a few hours to complete, depending on the banks involved and the time zones. This is significantly faster than traditional methods of making payments across borders, which could take several days or even weeks to complete. The speed SWIFT payments come with is a sure way to enable our local SMEs receive and send money quickly for goods and services and increase trade volumes, free up time previously lost while waiting to confirm payments.
This can be crucial for Small and Medium-Sized Enterprises (SMEs) that operate in fast-paced environments where quick access to capital can be the difference between success and failure. For instance, a shoe manufacturing house in Accra was to buy raw materials from a leather manufacturer in Kenya, it would be able to make payment for the leather instantly on the SWIFT platform. The leather manufacturer in Kenya would receive payment into its bank account, thereby skirting currently common delays – freeing up time to respond quickly to the order from Accra.
The World Food Forum today officially unveiled its theme for 2023: “Agrifood systems transformation accelerates climate action” and launched its activities for the year culminating in a series of global events, competitions and actions taking place from 16-20 October at the Rome headquarters of the Food and Agriculture Organization of the United Nations (FAO).
“Last year, one in ten people went to bed hungry, while nearly 3.1 billion people survived on starchy staples because they could not afford fruits and vegetables. Two in three children do not have enough nutrition to grow to their full potential. Countries can take concerted action to reverse these grim trends by transforming their agrifood systems harnessing its immense potential for positive impact reducing poverty, hunger and inequalities. At the same time they can choose pathways of transformation of their agrifood systems that minimize the trade-offs to our environment, biodiversity and climate,” said Máximo Torero, FAO Chief Economist and Chair of the FAO Youth Committee, in his opening remarks. He emphasized that transforming agrifood systems is a central part of the global climate solution, and young people are the heart of it as they act “as the inheritors of these challenges, but also as innovators and advocates for change.”
Climate change is impacting on the global challenge to achieve the Sustainable Development Goals (SDGs). Currently, agrifood systems account for one-third of human-caused greenhouse gas emissions, 90 percent of global deforestation and 70 percent of water use globally, and are the single greatest cause of terrestrial biodiversity loss, putting pressure on food value chains. Food is also the single largest category of material placed in municipal landfills and we lose or waste enough food to feed 1.3 billion hungry people every year.
More Objective Credit Ratings Could Save Billions for African Countries’ Development (UNDP)
African ministers, development actors and research institutes gathered on 14 April in Washington DC, on the margins of the 2023 World Bank/IMF Spring Meetings, to discuss the impact of credit ratings on the cost of development finance in Africa. At this meeting, organized by the United Nations Development Programme (UNDP), the Africa Growth Initiative at the Brookings Institution and AfriCatalyst, they raised the need to review international financing systems and particularly the determination of sovereign credit ratings for African countries, where data is often missing or of poor quality.
The event was centered around a new study by UNDP which shows that African countries could save up to US$ 74.5 billion if credit ratings were based on less subjective assessments. This, in turn, would enable them to repay the principal of their domestic and foreign debt and free up funds for investments in human capital and infrastructure development.
Better Migration Policies Can Help Boost Prosperity in All Countries (World Bank)
Populations across the globe are aging at an unprecedented pace, making many countries increasingly reliant on migration to realize their long-term growth potential, according to a new report from the World Bank.
The World Development Report 2023: Migrants, Refugees, and Societies, identifies this trend as a unique opportunity to make migration work better for economies and people. Wealthy countries as well as a growing number of middle-income countries—traditionally among the main sources of migrants—face diminishing populations, intensifying the global competition for workers and talent. Meanwhile, most low-income countries are expected to see rapid population growth, putting them under pressure to create more jobs for young people.
“Migration can be a powerful force for prosperity and development,” said World Bank Senior Managing Director Axel van Trotsenburg. ”When it is managed properly, it provides benefits for all people — in origin and destination societies.”
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National Development Agency signs Development Cooperation Agreement with German Cooperative Raiffeisen Confederation (South African Government)
South Africa is the latest Southern African Development Community (SADC) partner country to enter into an international development cooperation agreement with the German Cooperative Raiffeisen Confederation (abbreviated DGRV in German), an Apex Cooperatives Body in Germany with over 20 million members. GCRC has ties with more than 30 other countries, to provide consultancy and aid to develop cooperative systems and structures aiming at a sustainable development of the cooperative sector.
The agreement will be implemented through a signed Memorandum of Understanding (MoU) with the National Development Agency (NDA), an agency of government tasked with contributing towards the eradication of poverty and its causes in South Africa.
R21.4 billion infrastructure projects completed (SAnews)
As part of government’s commitment to grow the economy through infrastructure delivery, projects worth about R21.4 billion that mainly comprise of roads and human settlement have been completed.
These projects are part of the Infrastructure Investment Plan, which articulates the country’s need for an infrastructure-led economic growth and recovery. The plan was approved by Cabinet in May 2020 and it outlines pipeline of projects from all three spheres of government, state-owned entities and the private sector.
Addressing members of the media on Tuesday in Pretoria, Minister of Public Works and Infrastructure, Sihle Zikalala, said the total value of projects currently in construction is R313.5 billion.
Tunisia: Legal procedures for application of AfCFTA agreement finalised (ZAWYA)
Necessary legal procedures and technical conditions for the application of the provisions of the African Continental Free Trade Area (AfCFTA) agreement were finalised by the General Directorate of Customs on April 6.
The Ministry of Trade and Export Development said all economic actors - exporters, importers, distributors and all those operators interested in the African market- who wish to carry out foreign trade operations within the framework of this continental agreement can use the specimen of the AfCFTA agreement certificate of origin.
The certificate, a key element of the free trade agreement negotiations, can be issued by the chambers of commerce and industry.
Mobile money transfers beat other digital payment platforms (The East African)
Mobile money transactions defied the competition last year, hitting a new record high globally despite the emergence of alternative digital payment platforms.
The latest mobile money industry report by the Global Systems for Mobile Communications Association (GSMA) shows that global daily transaction value in 2022 surpassed forecasts to hit $3.45 billion, as the total value transacted on mobile money platforms grew by 22 percent to hit $1.26 trillion.
In East Africa, 41 million new mobile money accounts were registered last year, growing the number of transactions by 18 percent to 28 billion, worth about $491 billion. This is 23 percent higher than in 2021.
Debt payments surpass State running expenses (Business Daily)
Debt repayments for the first nine months of the current financial year overtook the national government’s recurrent spending on items like civil servant salaries for the first time, underlining the burden of mounting State borrowing.
Kenya spent Sh815.35 billion on debt repayments between July 2022 and March, up from Sh740.69 billion in the same period a year earlier.
This marks the first time in Kenya’s history that debt costs have surpassed the recurrent expenditure that stood at Sh814.7 over the period, Treasury data show.
Zimbabwe: Transform Africa IT Summit kicks off with $1.5m project to enhance digital trade (The Africa Report)
Zimbabwean Vice President Constantino Chiwenga introduced Presidents Emmerson Mnangagwa, Lazarus Chakwera (Malawi), Faure Gnassingbé (Togo), Hakainde Hichilema (Zambia), and Paul Kagame (Rwanda) to the three-day summit on Wednesday.
The special project will create harmonised e-payment policies across 10 countries to enhance digital trade and encourage e-commerce.
Cross border e-payments through the Digital Payments and e-Commerce Policies for Cross-Border Trade Project (IDECT) will be facilitated for governments, the private sector and small and medium-sized enterprises. The use of technology in day-to-day government projects and how investment in digital technology can create more efficient services and encourage economic growth.
Oil trade routes that take at least 5 times as long after war will likely result in more pollution (Anadolu Ajansı)
While Europe shifted away from Russian suppliers and toward those in West Africa, Latin America, and the US, Russia shifted 90% of its crude exports, which were originally destined for European markets, to those in India and China. Before the war, the voyage of a Russian oil ship from the Baltic ports of Ust-Luga and Primorsk to European ports in the Netherlands, France, and Belgium took five to six days because Europe was Russia’s main oil export destination.
Sudan fighting likely to affect supply chains, disrupt regional trade - analysts (The North Africa Post)
As fierce battles between armed forces loyal to two rival generals continue raging and with Sudanese counting their losses, the wider region is already reeling from the impact of the one-week conflict due to Khartoum’s economic importance in Northeast Africa, according to analysts.
Khartoum’s economic importance to its neighbors have already been felt and, as the conflict continues unabated, the wider region should brace for more losses, analysts warn.
“Sudan also plays a key role in preventing infiltration of terror merchants, or illegal weapons, who may be hiding in troubled Libya,” says Claire Amuhaya of Rudn University in Moscow. “It connects important transportation routes for aviation, oil and other stuff. It needs to be in stable hands to sustain this flow,” she adds.
Technical Assistance Coordination Group reviews Comoros, Timor-Leste post-accession needs (WTO)
Now that the accessions of Comoros and Timor-Leste are progressing rapidly towards conclusion, with the terms of their WTO membership starting to emerge, it is important to start looking at the support these two LDCs would need to implement their future commitments and obligations.
“Based on the experience from past accessions, the implementation of WTO commitments can be as challenging and demanding as negotiating them, if not more so,” WTO Deputy Director-General Xiangchen Zhang said.
Investment Policy Review of Togo (UNCTAD)
Togo’s IPR, commissioned by the government, includes an analysis of development policies, the business climate and institutions with a role in investment. Two fact-finding missions, in May and July 2022, completed the desk research. A workshop to present the draft report to stakeholders was held online on 17-18 January 2023.
UNCTAD’s Investment Policy Reviews (IPRs) help countries to improve their investment policies in order to achieve the Sustainable Development Goals (SDGs). They also help to familiarize governments and the private sector with the investment climate in these countries.
ECA’s Antonio Pedro urges Africa to cooperate for sustainable development (UNECA)
United Nations agencies should cooperate and coordinate their work to help member countries achieve sustainable development, the Economic Commission for Africa (ECA), Acting Executive Secretary, Antonio Pedro, has urged.
Addressing a United Nations Country Team (UNCT) retreat in Mozambique, Mr. Pedro, lamented that African countries were not collaborating effectively to deploy their national competencies to attract investment and boost trade among themselves.
“It is not really because of lack of strategies, visions or plans that Africa is not moving, it is because we do not connect the dots,” Mr. Pedro said, urging the UN agencies to take time to understand complementarity between their specific areas of specialization and competence.
Trade Minister advocates for reform at WTO to benefit developing countries (GhanaWeb)
Ghana’s Minister for Trade and Industry, Kobina Tahir Hammond, is calling for an enhanced capacity for developing countries to enable them to participate effectively in WTO negotiations and thereby benefit from the Multilateral Trading System.
The Minister also wants the restoration of a fully functional two-tier dispute settlement mechanism i.e. Panels and the Appellate Body to give the multilateral trading system (MTS) the needed predictability and certainty.
Additionally, he is pressing for improving the transparency of governments’ trade measures, especially as it pertains to export prohibitions and restrictions as witnessed during the height of the COVID crisis.
In December 2022, in Tangier, Morocco, on the occasion of the 16th replenishment of the African Development Fund (ADF), the African Development Bank and its development partners created a Climate Action Window for low-income countries. The window covers 37 member countries of the ADF, which are also among the world’s most fragile and vulnerable to climate change.
The recently published report of the UN Intergovernmental Panel on Climate Change (IPCC, 2023) confirms that West Africa, East Africa, and Central Africa are among the world’s hotspots for human vulnerability to climate change. According to the latest climate vulnerability index released in 2022 by the University of Notre Dame in Indiana, USA, nine out of 10 countries most vulnerable to climate change are in Africa. They are the Central African Republic, Chad, Democratic Republic of the Congo, Eritrea, Guinea-Bissau, Liberia, Niger, Sudan and Zimbabwe.
Africa, which suffers the most from the effects of climate change – while polluting the least, accounting for just 2.8% of world greenhouse gas emissions – is the continent that receives the least climate finance: less than 3% of total global climate finance.
In response to this urgent need to boost climate finance flow to support Africa’s development and promote a resilient and low-carbon development pathway, the African Development Fund and its partners have committed a total package of $ 8.9 billion to its 2023 to 2025 financing cycle. Of this package, which represents a 14.24% increase over the previous replenishment of $7.4 billion, $429 million is earmarked as seed money for the new Climate Action Window to reach up to $13 billion from traditional and non-traditional partners, as well as state and non-state, including the private sector.
The African Development Fund and Smart Africa Alliance have jointly launched a $1.5 million project to streamline digital trade and e-commerce policies across 10 African countries.
The Institutional Support for Digital Payments and e-Commerce Policies for Cross-Border Trade Project (IDECT) will evaluate policy gaps in the digital trade and e-commerce ecosystems of Côte d’Ivoire, Benin, Ghana, Liberia, Uganda, South Sudan, Zimbabwe, the Republic of Congo, São Tomé and Príncipe, and the Democratic Republic of Congo.
The project will see to the implementation of regional training and capacity-building programs focusing on cross-border e-payment and e-commerce for governments, private sectors, and Small and Medium Sized Enterprises (SMEs). These programs are expected to reach 600 participants, with 60% being women and youth. Additionally, a certified gender-sensitive e-learning training program addressing the unique challenges faced by women in digital trade and e-commerce, will be developed and disseminated to 2,500 participants, of whom 60% will be women.
“This initiative will bolster the development of harmonized e-payment policies, capacity building, and gender-sensitive frameworks, ultimately fostering a digital trade ecosystem that generates employment opportunities across the continent,” African Development Bank Director General for Southern Africa Region Leïla Mokaddem said.
Facilitating trade and transit in developing countries (UNCTAD)
Helping trade flow as freely as possible across borders requires stronger cooperation, globally and regionally. That’s the message from an UNCTAD event held at UN headquarters in New York on 20 April. The event, gathering over 200 participants, concluded a month-long intensive training for 61 transit coordinators from 12 countries across Africa and Latin America.
The landmark Trade Facilitation Agreement of the World Trade Organization (WTO) encourages countries to appoint a national coordinator to facilitate the movement of goods in transit while respecting specific regulations, documentation and customs requirements. But as of April 2023, only three WTO members had officially nominated such a coordinator.
“It’s in countries’ interest to appoint coordinators and then let others know about them for better cross-border coordination,” said Jan Hoffmann, head of UNCTAD’s trade logistics branch. UNCTAD works to raise awareness of the key role transit coordinators play, while promoting regional cooperation to help countries benefit from transit facilitation measures.
Tough Challenges, Tougher Choices: Parliamentarians show resolve in the face of overlapping crises (World Bank)
The Global Parliamentary Forum (GPF) returned to an in-person format following COVID-19, convening 160 parliamentarians from 62 countries in Washington, D.C. on April 10-11, 2023 around the theme “Tough Challenges, Tougher Choices.”
The flagship Spring Meetings event, organized jointly by the World Bank Group, the International Monetary Fund (IMF) and the Parliamentary Network on the World Bank and IMF, provides a platform for lawmakers to dialogue directly with World Bank Group and IMF senior leadership and experts, as well as their peers, on the most pressing development challenges.
This year’s GPF took place at a moment when the development landscape is being reshaped by an onslaught of crises, from climate change and surging debt to deepening conflicts and widening gaps in human capital, that are devastating the world and lives of the poor and vulnerable. Many parliamentarians are concerned about how to deliver results to their people in the face of these challenges, but remain committed to finding solutions.
Workshop promotes understanding of quantitative restrictions, notification requirements (WTO)
Quantitative restrictions are, generally speaking, prohibitions or restrictions other than tariffs and other taxes that are imposed on imports or exports, which can be implemented through several policy measures. While QRs are generally prohibited, they are allowed by the WTO in exceptional circumstances and many WTO members use them to fulfil certain legitimate objectives, such as the protection of the environment or human, plant and animal health.
The chair of the Committee, Kenya Uehara of Japan, highlighted that 2022 marked the 10th anniversary of the Council for Trade in Goods decision on notification procedures for quantitative restrictions, establishing an obligation for members to inform the WTO of their trade prohibitions and restrictions on a biennial basis.
New data reveals regional variations in digitally delivered services trade (WTO)
The recently released WTO-OECD Balanced Trade in Services dataset reveals digitally delivered services traded within Asia reached 43.2% of the region’s total trade in these services in 2021, up from 39.2% in 2019 (see Figure 1). Telecommunications, computer and information services as well as business, professional and technical services drove this rapid growth. In North America, the share of intra-regional trade in digitally delivered services rose to 18.2%, up from 15.8% in 2019.
However, the share of Africa’s exports of digitally delivered services to Asia rose from 20.3% in 2019 to 22.0% in 2021. Flows from South and Central America and the Caribbean to North America and to Asia were also on the rise. In 2021, 37.5% of the region’s exports of digitally delivered services went to North American countries, up from 34.5% before the pandemic.
International trade: what you need to know this month (World Economic Forum)
This monthly roundup brings you a selection of the latest news and updates on global trade. Top international trade stories: WTO predicts slower global trade growth in 2023; UK strikes its biggest trade deal since Brexit; EU bans imports of goods linked to deforestation.
Guterres urges countries to recommit to achieving SDGs by 2030 deadline (UN News)
Launching a special edition of the Sustainable Development Goals (SDGs) progress report, he warned that their collective promise made in 2015 of a more green, just and equitable global future, is in peril.
The report reveals that just 12 per cent of the 169 SDG targets are on track, while progress on 50 per cent is weak and insufficient. Worst of all, he said is the fact that progress has either stalled or even reversed on more than 30 per cent of the goals.
The UN chief noted that many developing countries cannot invest in the SDGs because of burdensome debt, while climate finance is far below commitments. Richer nations have not yet delivered on the $100 billion promised annually in support, he recalled, among other climate pledges.
“The 2030 Agenda is an agenda of justice and equality, of inclusive, sustainable development, and human rights and dignity for all. It requires fundamental changes to the way the global economy is organized,” he said. “The SDGs are the path to bridge both economic and geopolitical divides; to restore trust and rebuild solidarity,” he added. “Let’s be clear: no country can afford to see them fail.”
Mr. Guterres has appealed for an SDG Stimulus plan of at least $500 billion a year, and for deep reforms to the international financial architecture, both key recommendations in the report.
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Made in Nigeria Tiles gain traction among developers as preference shifts from China made Tiles (Nairametrics)
Rising demand and limited access to forex to facilitate imports are some of the factors driving the rise in local tile manufacturing. This is according to market research conducted by Nairametrics.
Some industry experts who spoke to Nairametrics opined that the country is no longer wholly dependent on imports to meet local demand for tiles. That’s because the product is currently being manufactured locally at a scale and quality good enough to meet local demands.
Agriculture and port issues discussed in South African-Namibian trade talks (Fruitnet)
The South African and Namibian fruit export sectors have for many years argued that the development of port infrastructure in Namibia and regular shipping opportunities from those ports would go a long way to resolving export logistics challenges in Southern Africa.
Relations between the governing South African party and that of Namibia go back to the so-called independence war in Namibia in the 1970s and 1980s. Since then, South Africa has become Namibia’s most important trading partner. As for exports, Namibia’s meat and fish products are sought after internationally, and since 2000 it has developed a growing and thriving table grape export business.
These industries require good export infrastructure – which includes good export facilities for fresh produce, deep-frozen products and a decent road system to the main port of Walvis Bay.
Bitter Battle: S.Africa Slams ‘Unfair’ EU Citrus Trade Rule (Barron’s)
President Cyril Ramaphosa condemned the EU Tuesday for restrictions on citrus exports from South Africa to prevent the importation of non-indigenous moths which stranded tonnes of fruit at sea when introduced last year.
Ramaphosa said he was “disappointed at the (EU’s) acts of... protectionism against” the country’s agricultural products, “most recently against our citrus”. The rules, which seek to combat the spread of a pest called the false codling moth, require South African farmers to apply extreme cold treatment to all Europe-bound oranges.
“We are now the world’s second largest exporter of citrus and believe recent decisions by the EU are unfair,” Ramaphosa said while co-hosting a business roundtable with visiting President of Finland Sauli Niinisto in Pretoria.
SA, Finland lay foundations for improved trade and investment relations (SAnews)
President Cyril Ramaphosa says he and his Finnish counterpart President Sauli Niinistö are looking forward to engaging with businesses from both Finland and South Africa on how to improve trade and investment flows between the two countries.
“A great deal of work is already happening in this regard… It is our collective wish to see the bilateral relationship thrive and improve, especially with regards to reciprocal trade and investment,” President Ramaphosa said.
Tanzania prepares new list of tax-free goods (Daily News)
The government is currently listing and verifying products and equipment eligible for tax exemptions. The lawmakers have been informed in Dodoma on Tuesday that the aim of the exercise is to ensure that citizens are benefiting from the exemptions.
Export agency targets blue economy sector to upscale Kenya’s export earnings (Capital Business)
The Kenya Export Promotion and Branding Agency (KEPROBA) has embarked on developing a common strategy for sustainable exploitation and maximization of the Blue Economy sector that is poised to be the new frontier for Kenya’s economic growth for the export market.
On Friday, KEPROBA held a consultative meeting with Blue Economy stakeholders from Mombasa and Kwale counties with the agency’s Director of Research and Innovation Peter Ochieng noting that through single-point failure analysis, the agency was slowly sealing the weaknesses for a more robust export of marine and aquatic resources.
Kenya’s total fish exports in 2021 were valued at USD 32.4 million; representing 0.005 per cent of the total export to the world, ranking Kenya as the 108th lead exporter.
Kenya’s volume of exported fish was estimated at 10,875.3 tons in 2021. The percentage contribution of aquaculture to GDP in the year was 0.7 per cent.
Natural capital, an option for African governments to finance Sustainable Development Goals (AfDB)
Africa must use all its comparative advantages to mobilize the resources it needs to finance its sustainable development ambitions. Since 2010, official development assistance has declined, falling to its lowest level of $34 billion in 2022, according to Organisation for Economic Co-operation and Development (OECD) estimates. Access to international capital markets remains constrained and costly due to investors’ perceptions of high risk.
Investing in Africa is profitable, African Development Bank President tells Japanese investors (AfDB)
The president of the African Development Bank Group, Dr. Akinwumi Adesina, has called for a significant increase in Japanese investment in Africa, saying the continent is the world’s best investment destination now and in the future.
Delivering a lecture at the Japan-Africa Investment Ecosystem Co-Creation Forum in the capital, Tokyo, Adesina said Africa offers enormous investment opportunities and gave examples of Japanese companies that have been running profitable businesses on the continent for many years.
Adesina pointed out that Japan’s foreign direct investment in Africa declined from $10 billion in 2016 to just $4.7 billion in 2020 during Covid-19 but recovered to $6 billion in 2021. Africa accounts for only 0.003% of Japan’s $2 trillion global foreign direct investments.
In terms of trade, the volume of exports and imports between Africa and Japan remains lower than 2%.
Africa: Climate finance facing global macroeconomic challenges; time for private sector support (AfDB)
Africa, the continent that pollutes the planet the least, is today one of the world’s most vulnerable to climate risks. While nations across the continent grapple with financing constraints, resources from the international private sector, including multilateral development financiers such as the African Development Bank, are helping to catalyze climate action and green growth.
For the African Development Bank, greater involvement of the private sector is crucial to closing the gap in climate finance flows into Africa, which until recently, was dominated by non-private actors.
Africa will soon take its rightful place in global trade — Bawumia (Modern Ghana)
Vice President Mahamudu Bawumia says Africa is open for business and committed to creating a more integrated, dynamic and prosperous continent through trade partnerships and investments. He, therefore, urged African governments and businesses to work together to promote this unique potential to attract foreign investment and create sustainable partnerships that would benefit the continent and its international partners.
“Ghana is proud of being at the forefront in this network and we look forward to working amongst partners worldwide to create a more equitable and sustainable future,” he said. Vice President Bawumia said this in a keynote address at the opening of the 53rd General Assembly of the World Trade Centres Association (WTCA) in Accra on Monday. “Towards African Economic Integration and Enhanced Global Presence” is the theme for the five-day conference.
A BRICS Currency Could Shake the Dollar’s Dominance (Foreign Policy)
Talk of de-dollarization is in the air. Last month, in New Delhi, Alexander Babakov, deputy chairman of Russia’s State Duma, said that Russia is now spearheading the development of a new currency. It is to be used for cross-border trade by the BRICS nations: Brazil, Russia, India, China, and South Africa. Weeks later, in Beijing, Brazil’s president, Luiz Inàcio Lula da Silva, chimed in. “Every night,” he said, he asks himself “why all countries have to base their trade on the dollar.”
World Bank Ranks South Africa, Egypt, Benin Republic, Others Ahead of Nigeria in Global Logistics Performance Index (Arise News)
South Africa, Egypt, Benin Republic, Botswana, Namibia, Djibouti and Rwanda are better rated than Nigeria in the latest global Logistics Performance Index (LPI) released by the World Bank.
The LPI report, titled “Connecting to Compete 2023: Trade Logistics in an Uncertain Global Economy,” provides a measure of countries’ ability to move goods across borders with speed and reliability, the report is coming after three years of unprecedented supply chain disruptions during the COVID-19 pandemic, with soaring delivery times.
The report which is based on a maximum score of 5.0, adjudged South Africa as the best in Africa and 19th in the world with a score of 3.4 per cent, followed by Botswana and Egypt which scored 3.1 per cent each to place a joint 57th position globally.
Making the European Green Deal Work for People: The Role of Human Development in the Green Transition (World Bank)
The damage to the environment caused by human activity in recent decades is an issue that involves people and entities across borders, and addressing this challenge requires the commitment and buy-in of all. Green transition represents a massive effort to adopt more environmentally sustainable practices in Europe at a scale that can make a difference for current and future generations.
A human-centered approach will be essential to achieving a just transition to the more sustainable environment envisioned under the European Green Deal (EGD). This report discusses how human development policies will play a key role in achieving this goal.
A digital euro: widely available and easy to use (European Central Bank)
We are now entering the final stage of the investigation phase of the project. The ECB’s Governing Council recently endorsed a third set of design options for the digital euro – design options that we have also discussed in previous hearings. Today we are thus publishing a report setting out the Eurosystem’s views on how people could access, hold and start to use the digital euro. The report also examines how the digital euro could be distributed by intermediaries as well as the services and features it could offer.
Joint Statement on the Third U.S.-Kenya Bilateral Strategic Dialogue (US Department of State)
The Governments of the United States of America and the Republic of Kenya held the third iteration of the U.S.-Kenya Bilateral Strategic Dialogue in Washington, D.C. on April 24, 2023. The U.S.-Kenya Strategic Partnership is grounded in mutual cooperation, respect, and a common vision for sustainable development. The U.S. Secretary of State Antony J. Blinken and Kenyan Cabinet Secretary for Foreign and Diaspora Affairs Dr. Alfred Mutua discussed strengthening the bilateral relationship across all five pillars of the Strategic Partnership and advancing peace and prosperity in Kenya, Africa, and beyond through the following actions:
Pillar One – Economic Prosperity, Trade, and Investment
The United States and Kenya commit to further increase two-way trade and investment cooperation through the Kenya-U.S. Strategic Trade and Investment Partnership and by prioritizing economic and commercial programs. Through these joint efforts, the United States and Kenya seek to work to create at least one million new jobs per year in Kenya and greatly reduce food insecurity over the next five years.
Today’s dialogue builds on key milestones, including a successful second round of U.S.-Kenya Strategic Trade and Investment Partnership talks, President William Ruto’s announcement of critical economic reforms at the March 29 to 30 American Chamber of Commerce Summit in Nairobi, and several new U.S.-linked investments in Kenya’s health, agriculture, and energy sectors. Kenya requests continued technical support and assistance in ICT, agro-processing, apparel, and pharmaceutical sectors.
Secretary Antony J. Blinken And Kenyan Cabinet Secretary for Foreign and Diaspora Affairs Dr. Alfred Mutua At a Joint Press Availability (US Department of State)
Data Show Private Infrastructure Investment Continues to Improve Following Pandemic Slump (World Bank)
New World Bank data finds that infrastructure investments in low- and middle-income countries continued to rebound in 2022. Private participation in infrastructure (PPI) commitments reached $91.7 billion across 263 projects, marking a 23% increase from 2021. The total number of projects, however, was still below pre-pandemic levels.
“As the world is staggering out of multiple crises, we are pleased to see that early signs of investment recovery continue to hold,” said Imad Fakhoury, the World Bank’s Global Director for Infrastructure Finance, PPPs & Guarantees. “At a time of tightening public budgets, the world has no choice but to mobilize the private sector to invest in green, resilient, inclusive and climate-smart quality infrastructure. Doing so is crucial to support the transition to net-zero carbon economies and fulfillment of SDGs as well as protect societies from mounting climate-related risks, and achieve universal access to basic services for millions of households who remain excluded.”
DDG González: A stronger WTO is good for people, planet and prosperity (WTO)
Noting that international trade has been remarkably robust despite continuous shocks, not least the war in Ukraine, stubborn inflation and supply chain disruptions, DDG González said that “trade has played a key role in supporting economic recovery and averting shortages by bringing food and other critical supplies to where they are needed.”
“Globalization is not going away, but it is changing,” she said, adding that “businesses will need to adapt to a world of geopolitical tensions, heightened trade policy uncertainty and possibly an increasingly fragmented global economy.”
El Salvador minister calls on WTO members to take action on promoting gender equality (WTO)
“The gap in economic opportunities continues to broaden and this hampers the potential for economic growth in our countries,” said Ms Hayem Brevé to members of the Informal Working Group. She called on all stakeholders involved in gender equality issues to work together, stressing that “government officials, bilateral donors and multilateral banks need to work in a coordinated manner”.
Here’s How Supply Chains Are Being Reshaped for a New Era of Global Trade (The Wall Street Journal)
When a measure of strains on global supply chains fell earlier this year to levels last seen before the Covid-19 pandemic, it signaled to some that the product shortages, port bottlenecks and shipping disruptions of the past three years were over and that a new era of stability was on the horizon.
But industry experts say a “return to normal,” as the Federal Reserve Bank of New York described its Global Supply Chain Pressure Index in February, hardly means that companies are going back to conventional, some would say complacent, supply chains.
The changes on the surface include less reliance on Asia, particularly China, and the use of more automation technology to keep assembly lines and warehouse operations running.
But there are more enduring changes, experts say, that will more broadly affect how companies get their raw materials and parts, where they produce goods and how they ship finished products to consumers.
Air Cargo Priorities: Sustainability, Digitalization & Safety (IATA)
The International Air Transport Association (IATA) highlighted three priorities to enable the air cargo industry to maintain momentum against the backdrop of a challenging operating environment.
“Air cargo is a different industry than the one that entered the pandemic. Revenues are greater than they were pre-pandemic. Yields are higher. The world learned how critical supply chains are. And the contribution of air cargo to the bottom line of airlines is more evident than ever. Yet, we are still linked to the business cycle and global events. So, the war in Ukraine, uncertainty over where critical economic factors like interest rates, exchange rates and jobs growth are concerns that are real to the industry today. As we navigate the current situation, air cargo’s priorities have not changed, we need to continue to focus on sustainability, digitalization, and safety,” said Brendan Sullivan, IATA’s Global Head of Cargo.
A fair share of resilience finance for Small Island Developing States (ODI)
SIDS have long argued that their unique condition, including their small populations and geographic location, makes them especially vulnerable to multiple climate impacts that they have had a negligible role in generating. Yet this vulnerability is barely accounted for in the allocation of development or climate finance, and only partially embedded in international organisations (IOs), including across the UN system, World Bank, and World Trade Organisation. This vulnerability will only increase, with climate change and disaster impacts driving higher and higher debt levels, which in turn undermine SIDS’ resilience and adaptation potential. Yet investments can and do increase SIDS’ ability to cope with external shocks, and to adapt and build resilience to future climate change impacts.
This paper analyses finance flows for 38 SIDS between 2013-20 to quantify the gap between vulnerability and allocation of finance.
With most of the Sustainable Development Goals (SDGs) still far from being achieved at this mid-point of the implementation of the 2030 Agenda, over 2,000 data experts from 140 countries are gathering in Hangzhou, China in person — almost 20,000 people will participate virtually — at the 2023 UN World Data Forum from 24 to 27 April to find solutions for equitable and open access to data. Better data is central to accelerating progress towards the SDGs and addressing the multiple crises that are threatening poverty eradication, food security, the environment and peace and security.
“We can’t carve out effective solutions to the problems we’re facing if we don’t fully understand the who, what, when, where, and why of the sources and the impacts. We need robust data that can give us the insights we need,” said Li Junhua, UN Under-Secretary-General for Economic and Social Affairs, and head of the Forum secretariat. “By convening such a diverse range of practitioners across the global data and statistics landscape, this Forum can help generate the solutions, partnerships and pathways that we need to better leverage data for decision-making and bring the world closer to achieving the SDGs.”
WMO annual report highlights continuous advance of climate change (World Meteorological Organization)
From mountain peaks to ocean depths, climate change continued its advance in 2022, according to the annual report from the World Meteorological Organization (WMO). Droughts, floods and heatwaves affected communities on every continent and cost many billions of dollars. Antarctic sea ice fell to its lowest extent on record and the melting of some European glaciers was, literally, off the charts.
The State of the Global Climate 2022 shows the planetary scale changes on land, in the ocean and in the atmosphere caused by record levels of heat-trapping greenhouse gases. For global temperature, the years 2015-2022 were the eight warmest on record despite the cooling impact of a La Niña event for the past three years. Melting of glaciers and sea level rise - which again reached record levels in 2022 - will continue to up to thousands of years.
“While greenhouse gas emissions continue to rise and the climate continues to change, populations worldwide continue to be gravely impacted by extreme weather and climate events. For example, in 2022, continuous drought in East Africa, record breaking rainfall in Pakistan and record-breaking heatwaves in China and Europe affected tens of millions, drove food insecurity, boosted mass migration, and cost billions of dollars in loss and damage,” said WMO Secretary-General Prof. Petteri Taalas.
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While it is the mandate of government to promote the establishment of small businesses, it is equally important to stress that government wants those businesses to develop into sustainable entities that will compete against traditional corporations and multinational companies. This was said by the Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina, during the business forum which took place in Ga-Segonyana, Kuruman in the Northern Cape.
Gina acknowledged that while Small Micro and Medium Enterprises (SMMEs) may be categorised at that scale, the Department of Trade, Industry and Competition (the dtic) has the vision to see them grow into bigger businesses and create more employment.
She further urged participants to take advantage of the opportunities presented to them and to utilise the information shared at the forum to improve their businesses. She expressed the dti’s commitment to supporting entrepreneurs and ensuring their growth and success.
New plans set to stimulate the revitalisation of industrial parks in SA (the dtic)
A new National Industrial Parks Implementation Framework will be developed, to support the revitalisation of industrial parks across all spheres of government.
This is one of the key resolutions coming out of the two day National Industrial Parks Summit held at the Centre for Science and Industrial Research (CSIR) in Pretoria. A technical task team comprising key stakeholders will therefore be put in place to develop the new implementation framework.
The Director of Regional Industrial Development at the dtic, Mr Thami Klaasen, says delegates have agreed in the main that industrial parks can no longer operate uncoordinated manner, it is important that they are transformed into dynamic sites which provide enhanced services.
“Some critical measures needed to revitalise the parks include integrating eco-industrial development, resilience approaches, stewardship and 4th Industrial Revolution (4IR) modalities designed to improve business operations and provide a more attractive environment for investment,” he said.
In addition, Klaasen says other key resolutions taken at the summit include the establishment of a rapid response team to urgently resolve bottlenecks confronting high priority parks, and to also assess future development areas.
Energy crisis and climate change must be tackled together (SAnews)
In his weekly newsletter, President Cyril Ramaphosa says government is determined to tackle both the energy crisis and climate change together.
“The country is faced with both an electricity crisis and a climate crisis, which we must tackle together. Our position is clear and principled: it is possible for us to prioritise our immediate energy needs without jeopardising our climate commitments, and we are determined to do so.
“In fact, we must accelerate the pace of investment in new renewable electricity generation as an important part of the plan to overcome load shedding,” the President said on Monday.
South Africa set up for record oilseed exports (World-Grain.com)
South Africa is reaching the limit of local oilseeds crushing capacity as its soybean plantings continue to surge, leading to the US Department of Agriculture’s Foreign Agricultural Service (FAS) to project a record 800,000 tonnes of oilseeds (soybean and sunflower) exports in its latest Global Agricultural Information Network report.
South Africa has experienced an upsurge in oilseed plantings over the past 20 years with a near nine-fold expansion in soybean area. FAS Post Pretoria sees this growth trend in soybean plantings continuing in marketing year 2023-24 with area and total oilseed production reaching a historically high level of 1.8 million hectares and nearly 3.6 million tonnes, respectively.
Soybean production is projected to reach 2.76 million tonnes from 1.18 million hectares planted, while the sunflower seed harvest could reach 810,000 tonnes from 600,000 hectares. The country is expected to ship 750,000 tonnes of soybeans and 50,000 tonnes of sunflower seeds overseas.
“In the past, South Africa’s trade in oilseeds was generally limited, as the bulk of production was destined for local crushing and trade was directed to oils and meals,” the FAS said. “However, with the surge in the local production of oilseeds leading production to exceed crushing capacity, South Africa has become a net exporter of oilseeds.”
SA, UK Ministers to share expertise in infrastructure projects (SAnews)
Public Works and Infrastructure Minister Sihle Zikalala, together with United Kingdom Trade Envoy Andrew Selous, have met to cement relations between the two countries.
The two countries are expected to share experience, expertise and best practices in the prioritisation, financing, procurement and management of infrastructure projects.
The UK Trade Envoy and his delegation met with Zikalala and Deputy Minister Bernice Swarts on Friday to extend the already existing partnerships that will see the two countries ramp up infrastructure development trade relations.
“The renewal and consolidation of these trade relations, which are detailed in the Memorandum of Understanding (MOU) signed between the two countries, will contribute towards improving South Africa’s capacity to deliver infrastructure projects and to attract investments.
Congo’s landlocked oil lacks options as Total says pipeline full (Engineering News)
The Democratic Republic of Congo’s (DRC’s) vision of earning billions of dollars in revenue from dozens of landlocked oil blocks will remain distant without a connection to a lone export route to be operated by TotalEnergies.
Over the last decade, Congo has watched eastern neighbor Uganda discover and develop significant oil fields while some of its own most promising resources were left untouched. Now, the country risks missing out on the best chance to bolster its petroleum industry if it can’t secure access to the planned East African Crude Oil Pipeline that will connect landlocked reservoirs to global markets.
FG seeks removal of Nigerian products from Chinese Protocol Lists to boost exports (Nairametrics)
The Nigerian Government on Sunday officially requested the removal of Nigerian agricultural produce from the Chinese Protocol Lists in order to increase Nigeria’s non-oil exports and boost Nigeria’s trade with China. This was disclosed by Ezra Yakusak, the MD/CEO of the Nigerian Export Promotion Council (NEPC) on Sunday. The Chinese Government officials revealed that Nigeria is now designated a “Country of Honour” by China.
Yakuzak said he appreciates the new designation for Nigeria and called for the reconsideration of the ban of some Nigerian products from China into Nigeria, in the collaboration which is exported to boost non-oil earnings and develop technology transfer between both countries, adding:
“We are aware that some goods have been placed on protocol lists here in China, goods from Nigeria, specifically, chilli pepper, peanut and other products. “We are urging you to reconsider removing those goods from the protocol list so that we would have the opportunity of exporting the goods with China.”
Global competitiveness: Over 30 taxes choke industries in Nigeria as FG plans 18 more (Vanguard)
Manufacturers have lamented that the multiplicity of taxes, levies and fees have continued to hamper the competitiveness of the Nigerian manufacturing sector in the global space.
Against the backdrop of the advent of the Africa Continental Free Trade Area (AfCFTA), this even puts Nigerian manufacturers at a disadvantage with their African counterparts, with the nation’s corporate tax rate at over 30 per cent well above the global average at 23.37 per cent and African average at 27.6 per cent.
A continental workshop organised by the African Union Commission (AUC) in partnership with the European Union (EU)-funded Tripartite Transport and Transit Facilitation Programme (TTTFP) is being held in Johannesburg, South Africa, to examine the harmonisation of Africa’s road transport regulatory frameworks.
The workshop, which began on the 18th and will end on 21st April 2023, is intended to assess progress on the harmonisation and implementation of Vehicle Load Management (VLM) in Africa, exchanging best practices on policies and standards while soliciting realistic proposals for a continental VLM strategy.
“Road transport facilitates roughly 80% of trade on the continent, and demand is expected to rise significantly in the coming years, aided by AfCFTA, which is why we need to increase the efficiency and capacity of transportation infrastructure and services for the movement of goods and people within and beyond borders,” he said.
This, in turn, will stimulate economies by allowing African enterprises to expand and enter new markets, increase productivity, generate jobs, accelerate industrialisation, and contribute to the achievement of Agenda 2063 aspirations, goals, and objectives.
WTO Director-General Okonjo-Iweala to visit Ghana, Côte d’Ivoire and Kenya (WTO)
In Côte d’Ivoire, the Director-General will meet with President Alassane Ouattara and members of the government. She will also take part in the ECOWAS Ministerial Round Table on the theme “Implementation of the results of the 12th WTO Ministerial Conference, and success for MC13 - the role of ECOWAS WTO member countries”.
“I am very much looking forward to my visit to Africa. Africa is a vital part of the membership of the WTO. I look forward to strengthening our partnership with countries in the region,” the Director-General said ahead of her trip. “African economies have taken major steps towards economic integration over the last few years at a time when the global trade landscape is changing rapidly. We must make sure we all work together to help our members in Africa take advantage of the opportunities offered by re-globalisation.”
EAC commends African Development Bank for the financial support on COVID-19 response in the region (EAC)
The East African Community has commended the African Development Bank (AfDB) for the support extended to the region that facilitated the bloc’s regional COVID-19 response efforts. The AfDB support was directed towards the set up of coordination systems for testing; test results verification; training of health workers and procurement of Personal Protective Equipment (PPEs), test kits and laboratory consumables.
Speaking on behalf of the EAC Secretary General, Hon. (Dr) Peter Mutuku Mathuki during a workshop of Technical Working Group on Communicable and non-communicable diseases held in Moshi, Tanzania, EAC Director Social Sectors, Dr. Irene Isaka acknowledged the contribution of the AfDB as a game changer in the implementation of the EAC COVID-19 Regional Recovery Plan.
She disclosed that the COVID-19 pandemic hit the region hard, with an estimated output loss of between US$37 and US$79 billion. This led to reductions in household income and business disruption of supply chains for tradable goods and services especially in the aviation, tourism and hospitality industries, where entire sector value-chains were rendered dysfunctional, added Director.
Regional businesses hurting in Sudan fight as situation worsens (The East African)
Sudan was already a delicate case, living through a stalled transition and a bad economy. But at least business was running and the country was still connected to the outside world, with its borders open, and airspace a popular air route.
But all this may go up in smoke, depending on how the warring parties, the Sudanese Armed Forces and the paramilitary unit, Rapid Support Forces (RSF) see it.
The security and stability of Sudan is important for business, lying between Suez Canal and Bab el Mandeb, it also borders North Africa, the Sahel and Central Africa. A busy shipping lane in the Red Sea and Port Sudan’s play a huge role as a corridor for trade for countries like Chad and South Sudan.
For Sudan, it is not just the port of business with the outside world that matters. Its airspace is among the largest aviation territories on the continent, making it a useful route when going to or from Europe.
“The ongoing unrest has forced Kenya Airways to suspend its flights to and from Khartoum, a further blow to the loss-making airline. The violence could also have a spill-over effect on Kenyan businesses operating in South Sudan, given that the country exports its oil via Port Sudan,” said Dr Peter Mwencha, a senior regional adviser at CUTS International.
AfCFTA: Remove visas, reduce customs process to ease logistics (The East African)
The umbrella bodies of the African Continental Free Trade Area (AfCFTA) private sector have called for the removal of visas and reduction of custom processes to ease movement of goods within the African continent.
The African Business Council (AfBC) that brings together regional economic communities (RECs) decried inconsistent and inadequate freight and logistics at the borders saying they have long hindered intra-African trade.
African countries are facing high custom delay periods due to visa challenges, shortages of paved roads upon which freight can be transported and a higher loss of goods due to limited cold chains compared to other regions globally.
“This is an opportunity for our continent to leapfrog as we recover from the ravages of the Covid-19 pandemic and the geo-politics. It is equally an opportune moment to galvanize the continent from the extra-continent dynamics and start looking for home-grown solutions,” said Dr Nsanzabaganwa.
“As we say, goods move with people. This idea of taking more than three days waiting for a visa application at the border is killing intra-trade. As members of the African Business Council, we want African countries to eliminate visa applications at the border and reduce the amount of time it takes to fill in custom paperwork,” said John Kalisa, the chief executive officer at the East African Business Council, a member of the ABC representing the East African Community (EAC).
Private sector crucial to overcoming Africa’s critical investment gaps – African Development Bank (AfDB)
The African Development Bank Group’s governors will address three strategic challenges when they meet next month for the group’s Annual meetings, the group’s Secretary General Vincent Nhemielle said during a news conference held on April 20.
The challenges confronting Africa in the coming year are: financing a low carbon development path that delivers growth and inclusivity and the continent’s climate goals; placing climate adaptation at the heart of economic policies; and unleashing Africa’s potential to address food insecurity and feed itself, he said.
The conference took place to give participants an idea of the agenda of the Annual meetings, which will be held in Egypt, from 23-26 May.
Implementation committees are moving the African free trade area from talks to action (WEF)
A fully implemented African Continental Free Trade Area would transform economies, raise African gross domestic product by 9% and reduce poverty by 50 million. It could also be a catalyst for further changes and attract investment from within Africa and beyond. However, these benefits depend on finalising the negotiations, which, compared with the case for other trade agreements, have gained much momentum – and, crucially, on the full implementation of all the provisions and associated instruments.
There are roles for both the public and the private sectors. We first discuss the role of the African public sector in implementing the AfCFTA through the formation and operation of National Implementation Committees (NICs), based on a new AfCFTA–ODI paper. We will then discuss the role of private sector action to support the AfCFTA, following recent WEF meetings and publications on the AfCFTA. There is much scope for aligned action to make a change in implementation this year.
African govt’s should crack down on illicit trade to increase tax revenue – study (The North Africa Post)
As 93% of the most climate-vulnerable countries in the Global South are “drowning in debt, according to a new research from ActionAid, experts warn that illicit trade greatly exacerbates this budgetary disaster, which in turn robs governments of massive amounts of tax revenue while undermining medical, environmental and economic health.
In a recently published report, SICPA West Africa exposes the scale of the illicit trade plaguing the health, energy, and food sectors, concluding that anti-fraud traceability systems are essential “in building an economy of trust,” that Africa needs to achieve its inclusive and sustainable development transitions.
Aside from food, the African sector most critical for the continent’s sustainable development, energy, is also gravely impacted by the scourge of illicit trading. According to the SICPA report, $133 billion worth of fuels is either stolen, illegally refined and imported or otherwise falsified globally, with Africa on the frontlines. Tackling rampant illicit trading in Africa’s health, food and energy sectors is thus an urgent priority.
Develop Own Market For Oil, Gas, APPO Charges African Countries (Leadership News)
As the global push for energy transition away from fossil fuels gather momentum, the African Petroleum Organization (APPO) has re-emphasised the need for the continent to develop the market for it’s oil and gas resources in order to address the prevalent energy poverty
APPO secretary general, Omar Farouk Ibrahim, said the future of the African petroleum industry lies in the hands of Africans and so must develop its own market.
“On the challenge of markets, for our oil and gas., we believe that the coming into effect of, AFCFTA. provides an excellent opportunity to work on developing cross-border and interregional energy infrastructure.” He revealed that the organization will soon launch its African Energy Bank.
UK commits £4m to address lack of cold chain in Africa (Engineering News)
The UK has committed to providing developing countries with £4-million to drive down harmful emissions from outdated air conditioning units, cooling refrigeration and cold supply chains.
In sub-Saharan Africa, smallholder farmers contribute 80% of food produced. About 37% of all food is lost between production and consumption, and almost 50% of fruits and vegetables are lost mainly owing to improper cold chain management.
“This funding will help developing countries play their part in tackling climate change and communities across the world with storing food and medicines more efficiently, as well as support farmers to increase their productivity,” said UK Environment Secretary Thérèse Coffey.
Hungary will sign EU’s Africa-Pacific trade deal after amendments, says minister (Reuters)
Hungary will sign a trade and development deal between the European Union and African, Caribbean and Pacific states after it was promised amendments it sought, the Central European country’s foreign minister Peter Szijjarto said on Wednesday. Hungary’s green light allows for the ratification of the accord with 79 African, Caribbean and Pacific (ACP) countries which was agreed by EU negotiators in December 2020 to set up a legal framework for cooperation on trade, aid and migration.
Hungary has been blocking the resolution on the deal since May 2021 saying it could increase migration and “force gender ideology” on the country.
Szijjarto said Hungary had now received assurances that issues such as education, sexual rights and labour market regulation will remain under national authority.
WTO members deepen discussion on e-commerce moratorium (WTO)
WTO members on 20 April shared perspectives on the current practice of not imposing customs duties on electronic transmissions. In the fourth of a series of dedicated discussions held this year under the Work Programme on Electronic Commerce, members highlighted the need for more exchanges on issue of the e-commerce moratorium, focusing in particular on its definition, scope, and implications on developing countries.
Expressing grave concern over recent shocks that are threatening sustainable development worldwide, the Economic and Social Council concluded its Financing for Development Forum today with the adoption of an outcome document aimed at reforming the international financial architecture in order to adapt to global economic changes and expedite progress towards realizing the Sustainable Development Goals.
Adopting the text — titled “Follow-up and review of the financing for development outcomes and the means of implementation of the 2030 Agenda for Sustainable Development” (document E/FFDF/2023/L.1) — by consensus, delegates said that it has laid a constructive foundation for further action.
“In the face of the multiple and interlinked global crises, we must meet the moment and embrace change by taking immediate measures to scale up efforts to achieve the 2030 Agenda”, Heads of State and Government stated through the outcome document. Recognizing the crucial role of inclusive and sustainable industrial and business development, and reiterating the importance of international cooperation, they reaffirmed the need to promote quality infrastructure in developing countries and explore innovative approaches to coordinate, scale up and channel public and private finance.
Further acknowledging that domestic resources are generated by economic growth and an enabling environment, world leaders recommitted to strengthen revenue-administration capacities through modernized, transparent and progressive tax systems and policies.
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Ramaphosa reports constructive engagement with steel sector to grow industry (Engineering News)
President Cyril Ramaphosa met with business leaders in the steel and engineering industries on April 18 to discuss measures that government, the industry and other social partners will take together to grow the sector and ensure its future sustainability. The purpose of the meeting was to deepen engagement between government and this strategic sector of the economy. Ramaphosa welcomed the constructive engagement with the sector, the presidency said in a statement.
Poultry sector urged to agree on heat treatment protocol (Engineering News)
Frozen foods importer, exporter and distributor Hume International said South Africa urgently needs to agree on a heat treatment protocol for mechanically deboned meat (MDM), such as the protocol currently in place for pork sourced from approved markets abroad, in case of a bird flu outbreak. While the presence of bird flu typically does not impact the safety of poultry for human consumption, having such a protocol in place could simultaneously safeguard MDM supply chains while setting consumers’ minds at ease, said Hume International MD Fred Hume.
Citrus organisation in urgent appeal to government over EU FCM regulations (Engineering News)
On the eve of the start of the 2023 citrus season, industry body the Citrus Growers’ Association of Southern Africa (CGA) has written to Trade, Industry and Competition Minister Ebrahim Patel and Agriculture, Land Reform and Rural Development Minister Thoko Didiza requesting an urgent update about the government’s interventions to help resolve the current impasse between South Africa and the European Union (EU) concerning the new False Coddling Moth (FCM) regime governing the importation of South Africa oranges to the region.
“Despite months of consultations between both parties at a World Trade Organisation (WTO) level, it appears very limited progress has been achieved to avert the crisis that will face the industry should growers have to implement these new regulations when oranges start being shipped to European markets in less than two weeks’ time,” the CGA states.
SA, Namibia resolve to deepen trade and investment (SAnews)
President Cyril Ramaphosa says Namibia and South Africa will deepen trade and investment ties with a Bi-National Commission (BNC) expected to be held between the countries later this year. The President was speaking during a media briefing during the Official State Visit by Namibian President Hage Geingob and several of that country’s Ministers on Thursday.
President Ramaphosa said progress has already been made in various sectors of mutual interests with new agreements signed in order to “further expand our formal scope of cooperation”.
“Our ministers responsible for trade and industry will convene a Business Forum later this year to be attended by business people from both countries. We also agreed that the ministers of trade of the two countries should put in place a mechanism to protect investments in our respective countries.
UAE and South Africa look to boost trade and investment opportunities (Arabian Business)
The UAE and South Africa held high level meetings on Wednesday to enhance bilateral trade and investment opportunities. The two sides also explored avenues to promote development in key sectors such as logistics, food production, tourism and energy.
“Amid global challenges, the UAE is taking bold steps to reimagine our economy, and trade is central to our ambitions to accelerate economic diversification, create long-term, sustainable growth and attract new forms of investment.
“We are also at the forefront of a new era of global trade, championing multilateralism and pioneering the use of technology to drive new efficiencies and enhance access to the global trading system,” Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said.
Kenya, Uganda join hands to fight counterfeits (Monitor)
In an effort to fight counterfeits in the East African region, the Anti-Counterfeit Authority of Kenya (ACA) and Uganda’s Anti-Counterfeit Network (ACN Africa) have signed a Memorandum of Understanding (MoU). The agreement signed on April 20, 2023, in Kenya’s capital Nairobi aims at strengthening strategic collaboration on matters pertaining elimination of fake goods in East Africa.
Worldwide, the World Economic Forum estimates that illicit trade presently deprives the global economy of $2.2 trillion annually, accounting for nearly three per cent of global gross domestic product (GDP).
ACA Executive Director Dr Robi Mbugua Njoroge Thursday said “the MoU represents a statement of mutual intentions between our two institutions- focusing on developing and strengthening a robust Intellectual Property (IP) system in the region.”
Export agency meets EU to discuss market opportunities (Capital Business)
The Kenya Export Promotion and Branding Agency (KEPROBA) met with the European Union (EU) Trade Counsellors in Nairobi today as it sought market opportunities for Kenyan products in the EU. State Department for Trade Principal Secretary Alfred K’Ombundo said the government is rethinking export strategies to ensure SMEs reap big from the export business.
“Kenya is working towards being a 21st century exporter. It is not just about how we export and trade, we need to provide leadership in terms of the green economy,” K’Ombundo said. “We need to adhere to our international commitments especially in efficient energy resources use in our production processes. We want to have more products sold at premium terms in markets across the world,” he added.
Angola rises five positions in Global Innovation Index (Angop)
Angola has risen five places in the Global Development Index, from 132 in 2021 to 127 in 2022, the Higher Education, Science and Technology Minister Maria do Rosário Bragança said Wednesday.
According to the minister, the improvement in position is still unsatisfactory, pointing to the need to focus more on education, science, information technology, engineering and mathematics. The focus on these areas, the minister said, also aims to improve the business environment and the diversification of the economy in the country.
DRC and Zambia to establish SEZs for electric vehicle production (The Independent Uganda)
The African Export-Import Bank (Afreximbank) and the United Nations Economic Commission for Africa (ECA) have signed a framework agreement with the Democratic Republic of Congo and Zambia for the establishment of special economic zones for the production of electric vehicles and batteries as the continent looks to add value to surging demand for its critical minerals.
Both countries have major reserves of some of the critical minerals needed to produce batteries for electric vehicles and other technologies key to the green energy transition: the DRC accounts for approximately 70% of global cobalt supply and 88% of cobalt exports, and the two countries collectively contribute 11% of all copper supply globally. Both countries also possess reserves of lithium, a key ingredient in electric vehicle batteries. But until now both nations been relegated to the role of suppliers of unprocessed critical minerals to foreign manufacturers.
In order to ensure that the countries move higher up in the value chain, Afreximbank and ECA will lead the establishment of an operating company in consortium with public and private investors and Afreximbank’s impact fund subsidiary, the Fund for Export Development in Africa. The new company will develop special economic zones (SEZs) dedicated to the production of battery precursors, batteries, and electric vehicles, in both nations.
Zim strengthens global ties to boost trade (The Herald)
ZIMBABWE will continue to strengthen its relations with the global community as part of strategies to grow international trade and open up new markets, a Cabinet minister said. This was said by Foreign Affairs and International Trade Deputy Minister, Dr David Musabayana at the tripartite inward trade mission for Kenya, Malawi, and Equatorial Guinea markets held by the national trade development and promotion organization, ZimTrade.
“In pursuit of trade and investment cooperation, I would like to urge you to consider collaborative efforts, particularly in the areas of innovation, technology transfer, and sustainable development, which are critical to our shared future. “These are part of the building blocks for sustainable industrialisation for the African continent,” said Deputy Minister Musabayana.
COVID-19, Agricultural Growth, and Food Insecurity in Africa (AfDB)
Paradoxically, while agriculture appears to be a buffer sector during the COVID-19 crisis in several Sub-Saharan African countries with agricultural production, food insecurity in Africa seems to be increasing. The negative effect of COVID-19 in addition to border disruptions and anti-COVID-19 policy measures have impacted all stages of agricultural value chains, from input supply to production, distribution logistics, and consumption, elevating the risks of food insecurity, hunger, and malnutrition. All pillars of food security (availability, access, utilization, stability) have suffered from COVID-19-induced disturbances in the global food system. With global food exports barely affected, it was expected that developing economies, particularly those in Africa that rely on food imports, would suffer the worst effects. Rising food prices due to import shortages of certain grains, such as rice, were expected to pose a particular challenge to food access and availability.
EAC Adopts Self-Regulatory Chain Strategy for Coffee and Fruit and Vegetables (RegionWeek)
The East African Community (EAC) private sector is taking steps to adopt a self-regulatory framework for food safety and quality standards for coffee, fresh fruits, and vegetables as required by national, regional, continental, and global markets, reads a statement from a high-level stakeholder workshop held on April 18, 2023, in Tanzania.
This framework aims to influence value chain stakeholders to observe safety and standards that make their goods competitive in international and regional markets and safe for consumers and to improve the quality and safety of fresh fruits and vegetables in the region.
On her part, Estella Aryada, the GIZ MARKUP Program Coordinator, pointed out that the respective Partner States should support the Private Sector in implementing the Framework. “The benefits of reduced certification costs and delays can create an environment of trust among consumers in both local and international markets”.
AFGRI highlights turnaround success (Engineering News)
Following a “tumultuous and challenging” period, agricultural services company AFGRI Group has entered its centennial year “restructured, refocused and re-aligned”, it says in a statement.
Over the last 24 months, a far-reaching and extensive turnaround programme has been successfully implemented to realign the group around its core focus of partnering meaningfully with those involved in the South African agribusiness industry by delivering tangible value to its clients, the company highlights.
China backs Africa in pursuing independent path for development: Xi (Anadolu Agency)
China said on Wednesday that Beijing strongly supports Africa in pursuing “a unique and independent development path.” “China and Africa need to strengthen solidarity and cooperation more than ever,” President Xi Jinping told his Gabonese counterpart Ali Bongo Ondimba who is on a state visit to China.
“China firmly supports Africa in pursuing a unique and independent development path,” Xi added. His comments on Beijing’s relations comes as bilateral trade between China and Africa surged last year to a record $282 billion, which is an 11% rise year-on-year. Chinese exports to Africa were recorded at around $164.49 billion, which posted an increase of 11.2% last year while imports from the African continent rose to $117.51 billion last year.
DDG Paugam: Trade is essential in responding to food security crisis (WTO)
We are living through a dramatic moment for global food security: international trade can help respond to it in both the short and long term; China is a key player on international markets that can provide leadership in this response. These are the key messages that I’d like to convey today.
First, WTO members must continue avoiding unjustified restrictions on food trade, to alleviate price pressure and volatility. Second, WTO members, in coordination with other organisations, should address the needs of vulnerable people in net food importing developing countries and Least Developed Countries. Third and most importantly, WTO members must improve global food security by revitalizing negotiations on agricultural trade reform, including issues such as domestic support to the farm sector, and the question of public food stockholding.
DG Okonjo-Iweala: WTO must contribute solutions to economic challenges the world is facing (WTO)
WTO members need to do more to boost global trade growth by investing in multilateral cooperation and contributing solutions to the economic challenges the world is facing, Director-General Ngozi Okonjo-Iweala said on 19 April.
In remarks delivered to a meeting of the WTO’s Trade Negotiations Committee, which she chairs, the Director-General noted that the slowdown in global trade which WTO economists projected in their recent annual forecast “should be a cause for concern for all of us.”
WTO economists said on 5 April that the volume of world merchandise trade is expected to grow by 1.7% this year following 2.7% growth in 2022. “Slower economic growth will, over the long-term, mean lower living standards and opportunities for people around the world,” she told members. “It is important to internalize digital trade as a new source of growth and ensure we’re providing the enabling environment, the level playing ground and the rules for this to thrive.”
WTO, World Bank, WEF launch joint effort to provide tailored trade and climate analysis (WTO)
The World Trade Organization, the World Bank Group and the World Economic Forum on 20 April launched “Action on Climate and Trade” (ACT), a new initiative that aims to help participating developing economies, including least-developed countries, use trade to meet their climate change mitigation and adaptation goals. The new initiative, which starts with a pilot phase, will focus on working with participating developing economies to develop climate-related analysis specific to their trade circumstances.
ACT will provide participating developing economies with tailored insights so that they can plan for the impacts of climate change on trade, leverage opportunities for climate action and trade growth, and define areas of collaboration with trade partners.
World economic outlook shows economies facing high uncertainty (IMF Blog)
Our latest World Economic Outlook forecasts that growth will slow from 3.4 percent last year to 2.8 percent this year. Growth is then expected to accelerate to 3 percent next year.
Risks to the outlook are heavily skewed to the downside, with heightened chances of a hard landing. In a plausible alternative scenario with further financial sector stress, global growth would decelerate to about 2.5 percent in 2023.
Looking further ahead, growth is expected to remain around 3 percent over the next five years. This baseline forecast of 3 percent five years ahead for 2028 makes it the lowest medium-term growth projection since 1990, and well below the average of 3.8 percent from the past two decades.
The anemic outlook reflects the tight policy stances needed to bring down inflation, the fallout from the recent deterioration in financial conditions, Russia’s war in Ukraine, and growing geoeconomic fragmentation.
IMF to consider debt restructuring for countries facing insolvency (The East African)
The International Monetary Fund will address the debt crisis country by country, and for countries facing insolvency, debt restructuring might be necessary. The Fund made the call during the World Bank/IMF Spring Meetings in Washington DC this past week as civil society and pressure groups called for debt forgiveness.
A number of countries including Zambia, Ghana have defaulted in debt repayment and Kenya is facing a potential crunch point in June 2024 when a 10-year Eurobond worth $2 billion will be due, unless a yield retreat allows for refinancing.
IMF Managing Director Kristalina Georgieva has called for debt restructuring for countries facing insolvency and debt stress, admitting that the lending landscape has changed drastically while debt resolution mechanisms have not.
“We take it upon us to support a more inclusive and more effective debt resolution. If we create a fair inclusive atmosphere for discussion as we have done now then the part of the resolution is clear. We will address the debt resolution country by country basis,” she said.
Current climate polices ‘a death sentence’ for the world, warns Guterres (UN News)
Antonio Guterres was addressing via videolink, the fourth meeting of the Major Economies Forum, convened by the United States President Joe Biden, which is designed to galvanize efforts to keep the global temperature rise of 1.5°C above pre-industrial levels, within reach – in line with the Paris Agreement.
“You are the major economies – but also the major emitters. And our world has a major climate challenge before us”, said the Secretary-General in his remarks to world leaders. “Today’s policies would make our world 2.8 degrees hotter by the end of the century. And this is a death sentence.”
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Joint Efforts Are Critical in Pulling SA Out of Its Economic Challenges (the dtic)
“As much as government and big business industry players have a role to play in contributing to the creation of jobs and growth of the economy, ordinary South Africans can make a serious mark if they utilise their drive and skills to grow successful businesses. The government is interested in seeing not only the emergence of more business operators, but ensuring that they grow in leaps and bounds to greater heights. Job creation can only be realised through the growth of SMMEs, as government we are duty bound to pay particular attention in providing necessary support, both financial and non-financial,” pledged Gina.
The Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina says government needs all key players, including ordinary South Africans to deal with challenges of unemployment, poverty and inequality. She was addressing small business operators who attended the business imbizo at the Sisizakele Special School at Bhambanana in Jozini, KwaZulu-Natal.
Uganda in dilemma on scrapping 10pc duty on sugar imports (The East African)
Uganda’s government finds itself in a dilemma over whether to scrap the 10 percent duty remission on imported industrial sugar.
Patrick Ocailap, deputy secretary to Uganda’s Treasury and Deputy Permanent Secretary in the country’s ministry of finance, told The EastAfrican that withdrawal of the privilege can be compensated through local production of industrial sugar which plays into the push for import substitution, creation of jobs and industrial linkages.
So far, the Uganda Sugar Manufactures Association (USMA) says it had negotiated for a delay in the withdrawal at least until the next fiscal year, according to USMA Secretary-General Wilberforce Mubiru.
Soft drinks manufacturers are the key users of industrial sugar. They complain that the price for locally produced industrial sugar ($1,015 per tonne) is already a disadvantage compared with that of imported sugar at $900 per tonne.
New taxes: Government has no intention to kill businesses - Deputy Trade Minister (MyJoyOnline.com)
Deputy Minister for Trade and Industry Michael Okyere says government will continue to engage businesses over their grievances relating to the new tax measures introduced by the government.
The Ghana Union of Trader’s Association (GUTA) and the Ghana National Chamber of Commerce and Industry (GNCCI) argue that the revenue measures are counterproductive hence the need for government to reverse them.
Speaking to Joy News’ Blessed Sogah on the sidelines of the African Continental Free Trade Area (AfCTA) Business Forum in Cape Town – South Africa, Michael Okyere Baafi says the intention of government is not to kill any businesses.
“The intention of government is not to cripple or sabotage businesses. That’s not what government has in mind. Government’s interest is to encourage people to do business and also when they do businesses and when they grow, those businesses are supposed to pay more taxes to government so that we can be able to undertake projects like very good infrastructural projects like roads, other things that will benefit car users and users of social services in the country,” he said while announcing that a series of dialogues will continue in order to find common grounds with private sector.
High food prices pressure Morocco export-led agricultural model (The East African)
Soaring inflation in Morocco is driving up living costs and stirring public anger, and as food prices increase the country’s export-led agricultural model is coming under fire.
Official figures from February put year-on-year inflation in the North African country at just over 10 percent, a figure that also included a 20 percent jump in food prices. The price of fresh produce in Morocco is almost as high as in some Western European supermarkets, but the minimum wage for Moroccans is just $300 (275 euros) a month.
Faced with growing criticism, Morocco’s Agriculture Minister Mohamed Sadiki attributed high food prices to ‘external and cyclical factors’ such as the rising cost of raw materials and a cold snap that delayed the picking of tomatoes.
In an attempt to stem the price rises, Rabat suspended exports of some products in early February including tomatoes, to ensure supplies for the local market. But that move drew protests from professional bodies who urged Moroccan Prime Minister Aziz Akhannouch reconsider the measure.
Trade in local currency may boost Egypt’s economic recovery (ZAWYA)
Egypt has started trading with other countries using their own currencies instead of the USD dollar. This comes as the country has agreed to import products from Russia and India using the Russian ruble and the Indian rupee. Accordingly, Egypt will no longer need to secure USD in order to import goods from both countries. Since 2018, the local currency settlement (LCS) mechanism has been implemented and embraced by a number of countries, including Malaysia, Japan, Thailand, and China. This helped maintain a positive LCS growth trend within the financial markets, recording $868 million in the first quarter (Q1) of 2022, according to the Bank of Indonesia. Experts believe that adopting this LCS mechanism in international trade will help Egypt’s economic recovery.
In September 2022, Russian Ambassador to Cairo Georgy Borisenko said that his country adopts a settlement mechanism using the local currency in trade exchange between Egypt and Russia, which includes a mutual acceptance of payments in the Egyptian pound or the Russian ruble in the two countries trade.
Moreover, India adopted a new foreign trade policy to trade in rupees with countries facing a shortage of dollars in order to “disaster-proof” them and to boost its exports, Sunil Barthwal, Commerce Secretary, said in a news conference in New Delhi late March 2023.
To import using the local currency of the exporting country, Egypt needs to reach an agreement with the central banks of these countries to obtain their currencies for trade or to allow the payment in EGP for them. While the North African country mainly imports its wheat from Russia, its wheat imports from Russia decreased by 6.7% in 2022; however, Russia’s share of Egyptian wheat imports increased to 57% from 50% in 2021, according to Reuters. Moreover, Egypt’s rice imports from India were worth $87.19 million in 2022, according to the United Nations COMTRADE database on international trade. Egypt plans to purchase at least 150,000 tons of rice from India; therefore, getting into a deal with both India and Russia is beneficial for Egypt, which has just resolved an issue of goods piling up at ports due to the USD shortage.
EAC to digitise tariffs for imported goods (The Citizen)
The East African Community (EAC) secretariat has commenced the process of digitising its Common External Tariffs (CET). The programme, being implemented with the support of the World Customs Organisation (WCO), is geared to enhance the private sector’s participation in international trade. Through the digitisation of the CETs, the business community—exporters and importers—will have access to trade information from the private sector in international trade.
The platform, which is currently under development in partnership with Global Trade Solution (GTS), will enable seamless migration of the EAC CET during the transposition of the Harmonised System (HS).
The EAC currently implements a four-band CET with a minimum rate of 0 percent for raw materials and capital goods and 10 percent for intermediate goods not available in the region. The other is 25 percent for intermediate goods available in the region and 35 percent for imported finished products available in the region. There are, however, other products classified as ‘sensitive products, which attract a rate above 35 percent, listed in Schedule 2 of the CET.
In automating the EAC CET, the scale, scope and speed of engagement by the private sector are expected to increase as a result of enhanced access to trade information in a digitally connected environment.
Concern as alternative funding model for EAC not yet in sight (The Citizen)
The alternative funding mechanism for the East African Community (EAC) is not yet in sight, over 20 years after it was mooted. The regional body, which has expanded to seven nations from three in 2000, is still partly dependent on donor support to finance its activities.
Minimal progress has reportedly been made despite an earlier commitment to roll out the new funding model by 2018.
The report tabled before a recent sitting of the East African Legislative Assembly (Eala) in Bujumbura, Burundi, noted: “We need a self-sustaining community rather than a donor-dependent one.”
ECOWAS member states urged to open market to Spanish investors (Ghanian Times)
The Ghana’s Ambassador to Spain, Mr Mohammad Adam has urged the Economic Community of West Africa States (ECOWAS) to make its partnership open to Spanish investors.
He has stressed the need for ECOWAS to consider a business forum with the Spanish Chamber of Commerce and the Spanish Confederation of Business Organisations (CEOE) umbrella to enable business investors geton-board, share their experiences and investment projections with the community.
“This business world in Spain when given the opportunity could provide needful tools to support the ECOWAS region and its agencies by increasing investments, jobs, shelter, commerce, social amenities and providing more to the economic sustainability mechanisms for the millions of inhabitants in the community,” he added.
The Third Meeting of the ECOWAS Regional Trade Facilitation Committee (RTFC) was held on 27 – 29 March in Accra – Ghana, to review the implementation of regional trade facilitation reforms and consider innovative approaches to improve free movement of goods in the region. The meeting also provided the regional experts with a platform to consider the ECOWAS Non-Tariff Barrier (NTB) Elimination Policy and the Regional Trade and Transport Facilitation Strategy, which are expected to significantly reduce the challenges faced traders in the region and increase intra-ECOWAS trade.
Mr. DJALO, Secretary General at the Ministry of Trade of the Republic of Guinea Bissau, and Chair of the Meeting, noted that the region can greatly benefit from the opportunities presented by the continental free trade area. He also highlighted that the need to reduce barriers to intra-regional trade and facilitate free movement of goods as enshrined in the ECOWAS protocol. He noted that the meeting will provide an opportunity for participants to make proposals in order to address challenges associated with free movement of goods and urged participants come up with actionable recommendations during the meeting.
Africa needs to reduce structural and regulatory barriers to market entry - Paul Mashatile (IOL)
South African Deputy President Paul Mashatile has hailed the establishment of the African Continental Free Trade Area (AfCTA) adding that it will “become a game changer to the continent’s growth trajectory.”
According to Mashatile, “there exists continental-wide consensus on the need for Africa to reduce structural and regulatory barriers to market entry and to invest in the necessary infrastructure to facilitate intra-African and global trade – more so road and maritime infrastructure. At present, the quality of much of the continent’s maritime, road and railway infrastructure is less than satisfactory. There are few road links, general poor road infrastructure maintenance and limited regional road linkages throughout the continent’s five regions.”
African countries should engender innovation, not become dumping ground —AU official (Tribune Online)
Professor Olalekan Akinbo of the African Union Development Agency (AUDA-NEPAD) has said that African countries should create room for innovation in order to avoid becoming a dumping ground for other countries’ innovations. Prof. Akinbo stated that it was imperative for African governments to create the enabling policy and environment to support innovations.
The supervisor at the Centre of Excellence in STI added that countries unwilling to innovate would definitely be left behind. He urged governments in Africa to deploy innovation into agriculture and move from subsistence to commercial farming so as to guarantee food sufficiency with surplus for exports.
“We are in a global village and every country, every continent relates in the area of trade. Therefore, Africa needs to be competitive
Africa’s industrialisation drive - the role of AfCFTA & regional DFIs (Trade Finance Global)
Over the next two years, Africa’s economic growth is expected to average around 4% above the estimated growth for developed economies. Yet, the majority of its population remains below the poverty line.
The sustained economic growth is partially attributable to commodity trade in its raw form but does not translate into similar levels of economic development. Industrialisation is a critical component of economic development, with many benefits that include improved standard of living, economic stability, growth in agricultural production, the balance of payment surpluses and high employment rates.
While several African countries have unique policies as part of the import substitution drive to reap the benefits of industrialisation, the impact of these policies are yet to be realised. There is a need for governments to create an enabling environment to help industries succeed.
Illicit trade crackdown can help pull debt-ridden African governments back from the brink (Ventures Africa)
Amid significant global economic turbulence, all eyes last week were on the annual Spring Meetings of the World Bank and International Monetary Fund (IMF) held in Washington, D.C. between 10 and 16 April.
High on the agenda were the deteriorating debt and climate finance crises facing the developing world. New research from ActionAid published alongside the meetings highlights that 93% of the most climate-vulnerable countries in the Global South – including Somalia, Malawi, and Mozambique – are “drowning in debt.” Alarmingly, nearly two-thirds of these nations are drastically slashing public spending to repay loans, hindering progress in funding vital climate resilience and sustainable development efforts.
A silent menace is greatly exacerbating this budgetary disaster: the illicit trade, which robs governments of massive amounts of tax revenue every year while undermining medical, environmental and economic health. Robust action to tackle Africa’s thriving counterfeit markets – namely traceability and authentication systems paired with regional regulatory cooperation – thus has a crucial role to play in easing budgetary pressures and unlocking the continent’s potential.
U.S.-Africa duty free program has had mixed results - trade panel report (Reuters)
A major U.S. trade preference program for Sub-Saharan Africa has been successful for developing the region’s apparel sector in selected countries, but its benefits are not widespread throughout all countries and sectors, a new report to the U.S. Congress showed on Monday. The U.S. International Trade Commission (USITC) said its report on the African Growth and Opportunity Act (AGOA) trade benefits shows that they have helped reduce poverty and create jobs in certain countries, particularly for women.
The report highlighted apparel as the biggest success story for the program, with the industry having a positive impact on poverty reduction in major exporters Madagascar, Kenya, Lesotho, Mauritius and Ethiopia.
“AGOA benefits appear to be essential for Sub-Saharan Africa countries to maintain their apparel exports to the United States,” the USITC report said, noting that loss of AGOA benefits by failing to meet eligibility criteria results in significant declines in exports to the United States.
“While certain sectors and countries have benefited from the program, AGOA has not achieved all that we had hoped, and more work must be done to improve our economic relationships,” said U.S. Representative Richard Neal, the top Democrat on the Ways and Means Committee.
Global Africa Business Initiative introduced to South Africa (UN Global Compact)
The Global Africa Business Initiative (GABI) has been introduced to South Africa at the Africa Continental Free Trade Area Business Forum being held in Cape Town this week held under the leadership of Wamkele Mene, Secretary-General of AfCFTA.
During opening remarks at the AfCFTA Business Forum Sanda Ojiambo, Assistant Secretary-General and CEO, UN Global Compact noted the importance of GABI to AfCFTA’s work:
“By leveraging an extensive network of partners, including the African Union, GABI seeks to address challenges unique to Africa and catalyze long-term solutions. In alignment with the African Union’s 2023 priorities, GABI will foster collaboration on initiatives that support the implementation of AfCFTA. The African business community must utilize this Agreement to drive forward socioeconomic transformation.”
Untapped renewable resources in Africa should receive more attention – RES4Africa (Engineering News)
As the majority of the world embraces a shift in electricity generation away from fossil fuels towards greener, renewable sources of energy, Africa faces several challenges in attracting investment capital to undertake a significant energy transition, renewable energy support foundation Renewable Energy Solutions for Africa (RES4Africa) secretary general Roberto Vigotti stated on April 19.
Speaking during the first of RES4Africa’s Online Lab series, he said Africa’s energy sector was faced with five main decisions about its green energy trajectory, including its ambitions to achieve universal access to energy, meeting energy demand growth and building a reliable power system.
WTO Members Should Allow Digital Trade to Flourish, Not Constrain It (US Chamber of Commerce)
The World Trade Organization (WTO) recently released its latest global trade projections. The headline: sluggish global trade growth of 1.7% projected this year, well below the average of the past two decades.
That’s not good news for a global economy beset by crises. The value of world merchandise trade was $25.3 trillion last year, a record, though inflated by high global commodity prices. The value of world commercial services trade hit $6.8 trillion, of which digitally delivered services exports accounted for more than half, or $3.8 trillion.
This growth can be attributed to a number of factors, but unquestionably, the longstanding WTO moratorium on the application of tariffs on electronically transmitted digital products has played a catalytic role. This is exactly what it was intended to do, for countries across the development spectrum. It’s also why moves by countries such as Indonesia to end this moratorium are so deeply troubling.
Don’t let SDGs turn into ‘mirage of what might have been’: UN chief (UN News)
The Secretary-General pointed to reports showing that, since the pandemic, the richest one percent of people around the world have captured nearly twice as much new wealth as the rest of the world combined.
Inequalities within some countries, he said, are regressing towards early 20th Century levels, a time when women did not have the right to vote; and before widespread acceptance of the concept of social protection.
The UN’s SDG Stimulus Plan, explained the UN chief, aims to boost investments that will help to achieve the Sustainable Development Goals (SDGs), relieve the debt burden of developing countries, and improving access to funding.
Working group on food security discusses building resilience, financing challenges (WTO)
At a meeting of the WTO’s working group on food security held on 17 April, WTO members stressed the need to enhance agricultural production and productivity in least-developed countries (LDCs) and net food-importing developing countries (NFIDCs) to improve their resilience to the acute food security crisis. Members exchanged insights from the workshop on production resilience that took place on 12 April and continued their discussion on financing challenges. They also reviewed the most recent results from the needs assessment questionnaire.
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Competition Commission steel industry inquiry to look into loss of competitiveness (Engineering News)
The Competition Commission of South Africa has gazetted the draft terms of reference for a new market inquiry into the South African steel industry, which will examine whether or not there are any features or combination of features in its value chain that impede, distort or restrict competition in the domestic steel industry.
The commission highlights that, in 2014, the South African steel industry was ranked nineteenth in terms of global crude steel production and was the largest producer on the African continent, producing more than half of the continent’s steel output.
Ramaphosa says digital economic investments will propel SA into new era of innovation (Engineering News)
While all investments contribute to economic growth and job creation, investments in the digital economy particularly will propel the country into a new era of innovation and progress, said President Cyril Ramaphosa.
In his weekly letter to the nation, he said that not only was the digital economy important for growth, but it was also vital to the provision of key services such as education, social services and health care.
SON Rolls Out Additional Security Authentication to Stem Product Counterfeiting (This Day Live)
The Director General/Chief Executive, Standards Organisation of Nigeria (SON), Mallam Farouk Salim, has said arrangements have been finalised for the launch of its Product Authentication Mark (PAM) sticker to check the inflow of fake, sub-standard, and counterfeit goods imported into the country.
Speaking at a stakeholder’s sensitisation programme on PAM), he said over 20 security feature stickers have been created adding that when fully in use, these will address the prevailing challenges experienced as a result of dishonesty on the part of fraudulent importers and manufacturers of products.
He said, “SON introduce the SONCAP to ensure the quality of products in our market that we will be proud of as consumers while the merchants of fake products will continue to flood the market with substandard items. “We also introduced for the locally manufactured goods the MANCAP in order not to be seen by the International Community as creating a trade barrier so that imported goods cannot come into our country especially with Nigeria being a signatory to the African Continental Free Trade Area (AfCFTA). “With this imported product will be certified and given the Product Authentication Mark (PAM) and it will be in our market.”
Ethiopia Moves Towards Liberalization of Trade in Services (COMESA)
Trade in Services plays a key role in the economic growth and development of a country. Services directly support production but also value chains and create jobs and other economic and non-economic opportunities. For Ethiopia, there exist numerous strategic services namely transport (air transport where Ethiopia Airlines remains a leader when it comes to air connectivity), arts, sports & recreational services. Others are financial, tourism and energy-related services.
Ghana, Netherlands renegotiates 34 year BIT (BusinessGhana)
Ghana and the Netherlands have started renegotiating their 34-year-old Bilateral Investment Treaty (BIT) in order for the agreement to conform to current global economic dynamics.
The current BIT was signed on March 31, 1989 and operationalised on July 1, 1991, for the trading of agricultural products like cocoa beans, fresh fruits, and vegetables from Ghana, and machinery, agricultural inputs, chemicals, and electronic equipment from the Netherlands.
At a ceremony to begin exploratory talks in Accra last Wednesday, the Deputy Minister of Foreign Affairs and Regional Integration, KwakuApratwum-Sarpong, announced new proposed areas for the BIT, expected to be ready in approximately two years.
Comoros has huge untapped investment potential (Africa Renewal)
In February 2023, the Union of Comoros ratified the African Continental Free Trade Area (AfCFTA). Later that month, the country’s President Azali Assoumani took over as Chairperson of the African Union. In this interview with Africa Renewal’s Kingsley Ighobor, the UN Resident Coordinator in Comoros François Batalingaya explains the UN support for the country during the ratification process and highlights investment opportunities in the country.
Q: Comoros recently ratified the AfCFTA. What kind of support did the UN provide the national authorities in ensuring a successful ratification process?
A: As you know, President Azali Assoumani was one of the first African leaders to sign the African Continental Free Trade Agreement in Kigali in 2018. So, Comoros was always there with a high-level political will. However, there were some concerns about a potential loss of customs revenue, which represents between 40 per cent and 50 per cent of the total government revenue. Not all the Members of Parliament or senior government officials were convinced that the AfCFTA is a good idea.
Comoros’ main trading partners are in the Middle East, not the African mainland. For example, India and Pakistan. As well as China and Brazil. We import most of our chicken from Brazil.
Q: What are some made-in-Comoros products the country could potentially export to the larger African market?
A: These are essential oils like ylang-ylang of which Comoros is the number one producer in the world; we have spices that are beloved in places like India; we have vanilla and cloves. We need to create value chains around these products and export to countries like Kenya, Sudan, Somalia, Djibouti and others. Comoros needs to access these markets.
Africa’s private sector converge in Cape Town to accelerate AfCFTA (MyJoyOnline.com)
Africa’s private sector will descend upon Cape Town, South Africa to participate in the 2023 African Continental Free Trade Area (AfCFTA) Business Forum – the first one to be held in person.
A statement released by the AfCFTA secretariat notes the key objectives of the event are to create awareness of the current trade and investment opportunities in the area among Africa’s business community; connect businesses to funding opportunities for AfCFTA value chains; establish a private sector engagement platform for continued consultations on private sector needs in the implementation of the AfCFTA; and to promote a private sector-friendly environment, especially for Small, Micro and Medium Enterprises (SMMEs) led by Women and Youth, to unlock more accessible and affordable trade finance opportunities.
The AfCFTA Secretary-General His Excellency Wamkele Mene has called on Africa’s business community to partner with the Secretariat in order to ensure a successful implementation of the Agreement.
He said “creating an integrated One African Market hinges upon effective private sector participation in the implementation of the AfCFTA. It is therefore critical that Africa’s private sector, as one of the key drivers, takes a keen and active interest, supports and fully participates in AfCFTA’s programmes”.
Intra-Africa trade key to mitigate support from IMF other financial institutions – AfCFTA boss (GhanaWeb)
Secretary-General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene, has noted that intra-Africa trade is the only way to help African economies build robust and more resilient economies to absorb any shock – internally or externally. This, he said, will help managers of African economies to stop running to the International Monetary Fund (IMF) and other financial institutions for monetary support whenever there is an economic meltdown.
Speaking at the AfCFTA Business Forum in Cape Town, South Africa, Mr Mene disclosed that the Bretton Woods institution has diverted global capital targeted at helping ailing economies bounce back on track to the advocacy of climate change.
He stressed that intra-Africa trade on the continent will mitigate the risk of reduced support for development finance as there would be a boost in trade which would in turn reflect in the GDP of every African economy.
Afreximbank gives fresh impetus to intra-African trade (Business Times)
The African Export-Import Bank (Afreximbank) says the share of intra-African trade in the bank’s portfolio has jumped on the back of a US$20bn disbursements meant to drive trade within the continent.
The Cairo-headquartered bank is on drive to boost intra-African trade, which at 18% in 2021 is low below Europe (68%) and Asia at 59%, according to latest data. Afreximbank president Benedict Oramah said the pan African bank has made intra-African trade finance the cornerstone of its interventions and have shown that it is not as “risky as historically portrayed”.
He said the bank has created the African Trade Facilitation Programme through which it is forging strong partnerships with African commercial banks to help them finance intra-African trade.
Standard Bank Gets Behind AfCFTA To Drive Cross-border Growth In Africa (Africa.com)
The African Continental Free Trade Area (AfCFTA) is a key opportunity for Africa to alleviate poverty, drive economic activity and achieve prosperity for her people, says Standard Bank, a key sponsor of this week’s African Continental Free Trade Area (AfCFTA) Business Forum in Cape Town.
“As Africa’s largest bank by assets, Standard Bank is committed to driving her growth and unlocking opportunities across the 20 markets we serve. In this regard, we support solutions that are Africa-centric and where the private sector plays a greater role in the health of local and regional economies. However, trade barriers and other protective internal policies remain stumbling blocks” says Philip Myburgh, Head of Trade for Business and Commercial Banking at Standard Bank.
Recent global supply chain disruptions illustrate the urgent need of building domestic value chains integrated into regional and global supply ecosystems. Standard Bank is optimistic about the benefits of a single market and wants to harness its broad networks and expertise on-the-ground to play a key role in helping AfCFTA take off.
“Standard Bank is building the finance and trade solutions to help address the tariff and non-tariff barriers required to realise the continent’s ambitions to create an effective single market,” says Myburgh.
Visa Foundation to invest US$5m in Africa (The Namibian)
The Visa Foundation plans to contribute US$5 million in grants and impact investments in Africa that would support women’s participation in the digital economy.
This follows Visa’s recent pledge to invest US$1 billion in Africa to advance resilient, innovative and inclusive economies in connection with US vice president Kamala Harris’s trip to Africa and the creation of a new Women in the Digital Economy Fund.
Aida Diarra, the senior vice president and head of sub-Saharan Africa at Visa, said expanding access to digital financial services lay at the core of Visa’s purpose, and the company and Visa Foundation were committed to helping address gender disparity and connecting more people to the global economy.
Visa Foundation’s support would focus on increasing access to financial solutions and other services for women entrepreneurs in sub-Saharan Africa, to drive equitable digital financial access as countries continue to digitise.
Steps Towards a Regional Customs Single Window (COMESA)
Over 50 delegates comprising of IT and legal experts from the COMESA Member States, and cooperating partners begun a four-day meeting of the Technical Working Group on the Implementation of a regional Single Window.
A Single Window as a trade facilitative measure in Customs administration that allows parties involved in trade and transport to lodge standardized information and documents with a single-entry point to fulfill all import, export, and transit related-related regulatory requirements.
With a membership of 21 countries, trade within the region can be complex involving extensive documentation and coordination amongst multiple agencies stakeholders. To overcome this challenge, COMESA has been working with member States to promote the establishment of an Electronic Single Window (ESW) to have a harmonized and standard data connectivity platform among other government agencies and private stakeholders who are active players across the trade supply chain.
Why East Africa could become continent’s next economic giant (The Citizen)
East Africa could soon become Africa’s economic powerhouse if ongoing plans to expand the East African Community are implemented successfully. Latest figures from the International Monetary Fund (IMF) forecast the seven-member bloc’s gross domestic product (GDP) to hit $346.17 billion this year, thanks to notable growth in a number of countries, with Tanzania being the region’s fastest growing economy.
According to the IMF, Tanzania’s economy is projected to grow by about $17 billion from 2021 to 2023 to reach $85.42 billion. Kenya’s economy is projected to reach $118.1 billion this year. This will be a growth of about $8 billion compared to the 2021 level.
According to the East African Community (EAC) secretary-general Peter Mathuki, the bloc’s leaders are at an advanced stage of bringing Somalia on board, to be possibly followed by Ethiopia. The entry of Somalia, with a projected GDP of $8.74 billion, and Ethiopia, whose GDP is set to be $156.1 billion, would lift the EAC’s GDP to $511.01 billion.
IMF’s Sub-Saharan Africa Regional Economic Outlook The Big Funding Squeeze
Growth in sub-Saharan Africa (SSA) is expected to slow to 3.6 percent as a “big funding squeeze”, tied to the drying up of aid and access to private finance, hits the region. This is the second consecutive year of an aggregate decline in SSA growth.
If no measures are taken, this shortage of funding may force countries to reduce fiscal resources for critical development like health, education, and infrastructure, holding the region back from developing its true potential.
Sub-Saharan Africa is far from powerless. Four policies can help navigate the current turmoil: i) consolidating public finances and strengthening public financial management, ii) containing inflation, iii) allowing exchange rates to adjust, while mitigating the adverse effects on the economy, and iv) ensuring important efforts to tackle climate change do not crowd out financing for basic needs like health and education.
“The Group reiterated the need to address rising debt vulnerabilities and continue strengthening the international debt resolution architecture, including by improving the Common Framework for debt treatments. The IMF continues to explore ways to make debt resolution more efficient. To this end, the IMF, together with the World Bank and the India G20 Presidency, have launched a Global Sovereign Debt Roundtable.
“The Group also agreed that strengthening social protection is critical. Social safety nets can promote higher and more inclusive growth by improving education and health outcomes, enhancing human capital and labor market productivity, and encouraging vulnerable households to invest in income-generating activities that also benefit local communities. Leveraging digital infrastructure, such as mobile phone platforms, can help to increase efficiency and ensure social support is well targeted to the most vulnerable.
The U.S. International Trade Commission (USITC) today released its report African Growth and Opportunity Act (AGOA): Program Usage, Trends, and Sectoral Highlights (Inv. No. 332-589). This investigation and report were requested by the U.S. House of Representatives Committee on Ways and Means in a letter received on January 19, 2022.
The report finds that the impact of the AGOA program on beneficiary countries can be substantial depending on the sector, especially apparel. Moreover, although the influence throughout SSA as a whole has been minimal, interviews by Commission staff, fieldwork, and some academic literature indicate that AGOA may have had a positive impact in key areas such as poverty reduction and job growth in some countries. The effect was found to be particularly important in the apparel sector and among underserved groups, such as women. Anecdotal evidence indicated that while meeting AGOA eligibility requirements created a positive impact on workers and poverty reduction, the loss of program eligibility due to failure to meet program requirements had a negative impact on beneficiary economies and regional integration.
Okonjo-Iweala: What COVID-19 taught us about job creation (TheCable)
Ngozi Okonjo-Iweala, director-general of the World Trade Organisation (WTO), says the COVID-19 pandemic taught the world how important global value chains have become for job creation and inclusion.
Speaking at the World Bank/IMF (International Monetary Fund) Spring meetings in Washington DC, the WTO DG, said the COVID-19 vaccine supply chain gave a lot of insight as to how the redistribution of the global supply chain can be structured for more inclusive jobs across the developing world.
“Global value chains are the backbone of trade. Global value chains make up to 45 to 55 percent of world trade. And there are forces for inclusion, they create jobs and help to increase incomes,” Okonjo-Iweala said. “Actually studies have shown that when you have global value chains spreading, per capita incomes go up.
“We are saying that at this time when global supply chains are trying to build resilience by not being concentrated in one country or the other, we need to see this as an opportunity to encourage them to spread to more developing countries as a force to bring even SMEs and women into the value chains,” she added.
DDG González: To make trade more inclusive, make it easier, faster and less costly (WTO)
“Making trade more inclusive is not just morally right, it is also in everyone’s economic self-interest,” DDG González said, adding that “WTO members already have a practical, pragmatic and powerful tool to make trade more diversified, markets less concentrated, and economies more resilient — it is called the Trade Facilitation Agreement.”
Secretary-General’s remarks at the Opening of the 2023 ECOSOC Forum on Financing for Development (UN)
The world is in crisis – a multidimensional crisis that is turbocharging inequalities, with a devastating impact on the poorest and most vulnerable. The 2030 Agenda and the Sustainable Development Goals are turning into a mirage of what might have been, as communities and governments struggle to meet immediate needs. The scars of the COVID-19 pandemic run deep in developing countries that suffered terrible losses in lives and livelihoods. The war in Ukraine is contributing to a global cost of living crisis. Climate disasters are becoming more frequent, deadly, and expensive. One in three countries is at high risk of a fiscal crisis. And more than 40 per cent of people in extreme poverty live in countries afflicted by severe debt problems. These trends are deeply damaging to the poorest people and communities – but not to the richest.
The 2023 Financing for Sustainable Development Report reveals a yawning finance divide that will quickly turn into a development deficit for many countries – and a crisis in global trust and solidarity.
This is the background to my proposal to G20 countries for an SDG Stimulus to scale up affordable long-term financing for all countries in need, by at least 500 billion dollars a year.
We need engagement and support from all corners of the world to renew the international financial architecture and make it able to face the challenges of today and tomorrow.
Funding a better future for all: 5 things to know about the Financing for Development Forum (UN News)
There are so many conflicts, humanitarian disasters, extreme weather events and economic upheavals taking place in the world, that a new word is being used to describe the current state of affairs: the “polycrisis”. The word appeared in 2022, a year that began with tentative hopes that the global economy would begin to recover from the huge disruption of the COVID-19 pandemic, but was soon dominated by the Russian invasion of Ukraine. Amidst all of these competing crises, many countries simply don’t have the resources to invest in recovery, climate action, and sustainable development.
This is the challenging environment in which the 2023 Financing for Development (FfD) Forum is taking place at UN Headquarters, between 17 and 20 April, aimed at pushing forward policies to address global developmental issues, from crippling debt, to under-development, and food insecurity.
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Closing remarks by President Cyril Ramaphosa at the 5th South Africa Investment Conference, Sandton Convention Centre, Johannesburg (The Presidency)
We have come to the end of the 5th South Africa Investment Conference.
We have honoured the undertaking we gave the South African people in 2018 that we would attract new investment to our shores, support the growth of local businesses and create more jobs.
Nor could any of us have imagined the lingering impact on investment, businesses, jobs, and livelihoods, even years after the existential health threat has passed. For us to have been able to meet our five-year target despite major challenges and disruptions, including the pandemic, is no mean feat.
Infrastructure development is one of the key areas of focus to drive economic growth and is the flywheel that drives economic growth.
When we talk about investment in the cause of development, infrastructure is at the center.
President sets R2 trillion investment target (SAnews)
Propelled by the success of the South Africa Investment Conference (SAIC) held annually in the country over the past five years, President Cyril Ramaphosa has set a R2 trillion target for South Africa to achieve over the next five years.
Attended by delegates from varying industries in South Africa and across the world at the Sandton Convention Centre in Johannesburg, the afternoon session of the conference saw investments announced in the digital economy, manufacturing sector and the Special Economic Zones (SEZs). These are expected to pave the way for job creation and economic growth.
SA “conducive for business” (SAnews)
Human Settlements Minister Mmamoloko Kubayi has lauded the functioning judicial system which makes South Africa fertile ground for investment. The Minister was speaking during a panel discussion on Investing in South Africa at the fifth South Africa Investment Conference on Thursday.
“In terms of the story around investing in South Africa, one of the things that I say is we as a society tend to focus on the negative, which we must pay attention to, but there are quite a number of things that make South Africa a good area for investment, which sometimes we don’t talk about.
Kubayi also lauded the tax regime in the country, which provides a sound framework for business to thrive.
Car importers feel heat of new registration policy (Business Daily)
A State requirement for used cars to be assigned registration number plates before clearance and not when selling them has led to a backlog of 6,000 used vehicles at various Container Freight Stations (CFS) in Mombasa.Car Importers Association of Kenya Chairman Peter Otieno says the rule has put importers at a disadvantage as their vehicles take several months before they can be sold in a market where buyers prefer cars with plates.
This, they said, has forced them to sell their cars at lower prices or offer discounts between Sh50,000-Sh200,000 per unit on those that may not be older but were imported earlier, and do not bear latest number plates.
“This system is not fair to our members due to the fact that customers do not buy the motor vehicles but the new number plates therefore the one month or more registered number plates are considered to be old vehicles,” said Mr Otieno in a recent letter to the Kenya Revenue Authority.
Kenya’s external debt balloons by $2.58b on weak shilling (The East African)
Kenya’s external debt has ballooned by a staggering KSh344.4 billion ($2.58 billion), giving dimension to the impact of a weakening shilling whose exchange rate against the greenback has tanked to a historic low of KSh133.55.
The Central Bank of Kenya (CBK) data shows that total external debt as of January stood at $37.63 billion (KSh4.7 trillion), where the mean exchange rate was 124.4 against the dollar.
Most of the Kenya’s foreign loans are owed to multilateral institutions such as the World Bank, the International Monetary Fund (IMF) and African Development Bank (AfDB), with a big chunk of the loans being concessional loans with preferential repayment terms.
With the tightening of the global market, the country has been forced to rely on cheap loans, especially from the World Bank and IMF.
Kenyan economy to overtake Angola as Ethiopia widens lead (Business Daily)
In its latest World Economic Outlook, the IMF says gross domestic product (GDP) of Angola, an oil producer, will shrink during the period allowing Kenya, whose economy is expected to grow by 5.3 percent, to overtake it, and perch itself at the fourth spot behind Ethiopia.
However, Ethiopia, which the IMF had projected in its October 2022 outlook would overtake Kenya to become Eastern Africa’s largest economy, is now expected to overtake both Angola and Kenya to become the third largest economy in sub-Saharan Africa.
This is after the IMF revised its earlier forecast on Ethiopia’s GDP in 2023 from Sh16.9 trillion ($126 billion) to Sh20.9 trillion ($156.1 billion), stretching its newfound lead over Kenya.
Tunisia drought threatens ‘catastrophic’ grain harvest (The East African)
A severe drought in North Africa has left Tunisian farmers bracing for a catastrophically poor harvest, imperilling food security in the cash-strapped country.
At a time when the global cereals market has been disrupted by the Ukraine war, Tunisia’s domestic grain production has also withered under a lack of rainfall that has killed off crops.
Even before the roasting summer months, the soil is dry and dusty in the small Mediterranean country, whose water resources are steadily depleting as climate change intensifies.
FG signs agreement to re-concession Lagos trade fair complex (Premium Times Nigeria)
The Bureau of Public Enterprises (BPE) has signed a tripartite agreement to commence the re-concession of the Lagos International Trade Fair Complex (LITFC). This is contained in a statement signed by BPE’s Head of Public Communications, Amina Tukur, in Abuja on Monday.
Director-General of BPE Alex Okoh said the standardisation of lease agreements would ultimately increase the earnings of the LITFC and the Federal Government in particular.
CAPS, new gas megaproject, aims to power Central Africa, but at what cost, critics ask (Mongabay Environmental News)
More than 60% of people in Central Africa have no access to electricity. An ambitious proposal aims to change that with a network of pipelines, refineries and gas-fired power plants stretching across 11 countries in the region. But critics say the proposed Central African Pipeline System is a mistake.
Nathalie Lum, chairwoman of the Central Africa Business Energy Forum (CABEF), an organization that hosts an annual conference of oil and gas corporations and regional energy ministers, told Mongabay that CAPS will help make the Central Africa region an “energy poverty-free zone” by 2030.
“Access to reliable, affordable energy can help reduce poverty, attract investments, and create jobs, while also providing an important source of revenue for governments.” she said.
Turkey-Egypt trade exchange can rise to $20bln within 10 years: Turkish Charge d’Affaires in Cairo (ZAWYA)
Over the past months, Egyptian-Turkish relations have been thawing at the state level following a decade-long rupture. In the latest round of the recent rapprochement between Türkiye and Egypt, Turkish Minister of Foreign Affairs Mevlüt Çavuşoğlu visited Cairo in March and held bilateral talks with his Egyptian counterpart Sameh Shoukry.
On the economic front, the two countries maintained strong ties despite the frosty diplomatic relations. Türkiye was the largest importer of Egyptian products in 2022 totalling $4bn. Also in February, a delegation of 14 representatives of Turkish companies visited Cairo and met with Egyptian Prime Minister Mostafa Madbouly, to discuss economic cooperation between the two countries.
AfCFTA agreement presents economic opportunities for investors (SAnews)
Investors should seize the economic and business opportunities to establish a commercial presence in South Africa, said Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene.
Mene was addressing delegates from varying industries in South Africa and across the world at the fifth South Africa Investment Conference (SAIC) on Thursday.
“By 2050, the continent will be home to 2.5 billion people. The largest working force in the world by 2050 will be in Africa. At that point, estimates are that consumer spending and business spending in Africa will be in excess of $16 trillion.
“This is an opportunity that our continent and our investors should not miss. It is of course expected that there will be challenges but I encourage everyone to look at Africa with a long-term view of investing and to see your returns in your investments,” Mene said at the gathering held at the Sandton Convention Centre in Johannesburg.
The implementation of the agreement is also expected to contribute $450 million combined gross domestic product (GDP) to Africa’s GDP and increase wages by close to 9%.
“We project that the most immediate beneficiaries will be small, micro and medium enterprises (SMMEs) that are led by women, this is why this agreement is so important for the future of our continent,” he said.
“The long station ambition of the African Union (AU) is that one day our continent must be a common one. That is why we recently concluded protocols on investment protection with some ratifications to be done on international property rights and competition, which are so critical for the economic integration in Africa,” Mene said.
South Africa to Host African Critical Minerals Summit in 2023 (Energy Capital & Power)
The first ever African Critical Minerals Summit will take place on November 6-7, 2023, in Johannesburg, hosted by South Africa’s Department of Mineral Resources and Energy. H.E. President Cyril Ramaphosa will open the global gathering with over 2,000 delegates expected to participate. South Africa’s government will welcome delegations from around the world – including the United States, European Union, United Kingdom, BRICS and G20 countries.
The Africa Fertilizer Financing Mechanism’s (AFFM) Governing Council committed to to mobilize funds to implement the AFFM’s Strategic Plan 2022 - 2028 to support the increased availability and appropriate use of fertilizer on the continent.
The AFFM strategic plan 2022-2028 prioritizes broadening access to finance through capital investments and policy reforms. Technical assistance will also be provided to boost smallholder farmers’ access and appropriate fertilizer use.
Through the end of 2022, trade credit guarantees totaling $8.8 million provided 5.3 times leverage, enabling the provision of 112,268 tonnes of fertilizer to 690,896 smallholder farmers in the four countries. Under these projects, 97 small and medium enterprises gained access to finance, and 138 companies, including fertilizer suppliers, hub-agro dealers and aggregators, and 20,987 smallholder farmers, benefited from capacity building
To scale up its trade credit guarantee investments, the AFFM has developed a pipeline of projects for implementation in 2023. These will be rolled out in Mozambique, Zimbabwe, Uganda, Kenya and Tanzania.
Sub-Saharan African, South African growth to moderate in 2023 (Engineering News)
The gross domestic product (GDP) growth of countries in sub-Saharan Africa is expected to moderate throughout 2023, with the regional average falling to 3.5%, from 3.6% in 2022 and below the 2010 to 2019 average of 4.1%, credit risk and strategy decisions research company Fitch Solutions Country Risk and Industry Research country risk head Jane Morley said on April 13.
This is owing to global headwinds, including tightening financial conditions, lower commodity prices and the lagging impact of higher inflation following Russia’s invasion of Ukraine, while further tightening of global financial conditions will dampen economic activity in many sub-Saharan African markets, she noted.
Strengthening resilience in food security: Africa’s option to end malnutrition (Vanguard)
Africa, rich in human and natural resources has no business being poor or hungry, but large-scale development challenges have taken a toll on citizens, making them very vulnerable and unable to self-actualize.
From Morocco in the North, Zimbabwe in the South, Somalia in the East, Nigeria in the West to the Central African Republic (C.A.R) in Central Africa, citizens suffer the common fate of over-population, leadership deficits, inadequate plan implementation, wars, climate change, pestilence, deprivation, poverty, food scarcity, malnutrition and other factors, which threaten the prosperity of the continent.
To mitigate this challenge, the African Union, the continental body with the mandate to ensure prosperity, peace and unity across the continent, has devised means to address the menace, using Agenda 2063 which is the continental framework for transforming Africa into the global powerhouse of the future. It has other programmes like the African Continental Free Trade Area (AfCFTA) to boost intra-African agricultural trade and the Comprehensive Africa Agriculture Development Programme (CAADP).
African enterprises set to expand business engagements through continental trade agreement (UNECA)
40 women and youth-owned businesses attend a three-day masterclass series organized by ITC, AfCFTA Secretariat, ECA, OWIT and CLDP through AWYEG ahead of the AfCFTA Business Forum. The masterclass aims to equip these African entrepreneurs with the skills, information and networks needed to expand their business prospects across Africa by using the AfCFTA.
“Access to investment and trade finance is a critical lever for empowering women- and youth-led businesses to seize new opportunities in exports, business, and regional value chains created through the AfCFTA. ECA’s session on Investment Readiness Under the AfCFTA is, therefore, focused on enhancing the capacity of women- and youth-led businesses in designing compelling business cases for investment. This will enable them to scale and meet the standards of the African market, while also creating business linkages that facilitate their participation in continental supply and value chains,” said Mie Joergensen, Junior Professional Officer, ECA.
Afreximbank to hold 30th Annual Meetings in Accra, Ghana, from 18-21 June 2023 (Afreximbank)
The 30th Annual Meetings of African Export-Import Bank (Afreximbank) will take place in Accra, Ghana, from 18 to 21 June 2023. The event will mark the high point of the Bank’s year-long 30th anniversary celebrations, under the theme “Delivering the Vision. Building Prosperity for Africans”. The 30th Afreximbank Annual Meetings and 30th Anniversary celebrations will bring together on one platform thousands of people, including African and Caribbean leaders and senior government officials, African, Caribbean and other policymakers, corporate leaders, bankers, academia and other thought leaders. The meetings will include the Annual General Meeting of Shareholders and an extensive seminar programme, featuring plenaries and side events.
Econews Africa wants Kenya, USA trade deal halted for lack of consultations (Capital Business)
The not-for-profit organization Econews Africa (ENA) now wants trade negotiation between the Kenyan and American governments stopped to allow stakeholders to engage. ENA says that talks under the Strategic Trade and Investment Partnership (STIP) cannot go on until pertinent issues are addressed. STIP will act as the precursor to the African Growth and Opportunity Act (AGOA), whose expiration date is set for 2025.
While American stakeholders have submitted their views to the United States Trade Representative (USTR) for consideration, the country has yet to conduct one.
“We note with concern that American stakeholders have given extensive comments to the USTR, while the Kenyan negotiators have yet to make any attempt to consult widely before embarking on the negotiations.”
“There needs to be a comprehensive assessment of the effect of agricultural trade liberalization,” Odari stated.
The global economy is at another highly uncertain moment: tentative signs of stabilization earlier this year have receded, and the outlook is increasingly risky and uncertain. At the same time, divisions within and across countries are deepening, exacerbated by rising fragmentation. Strong policy action is needed together with pragmatic approaches to find areas of common ground to respond to shared challenges. The IMF is proactively engaging with our members to chart a clear course to a stronger and more sustainable path for the global economy.
Africa’s COP27 climate change funding target met by 64% as AFDB announces $2.4 billion mobilized (Garowe Online)
In 2022 during the COP27 summit, the African continent set a target of $1.4 billion for the initiative to build the resilience of vulnerable systems and promote sustainable development in the country. However, the target now has been surpassed by 64 percent according to the African Development Bank (AfDB).
AFDB has revealed that they have surpassed its mobilization target for The Just Green Transition (JGT) initiative after raising $2.3 billion which will be invested in tackling climate change-related challenges in Egypt.
Global Food Crisis Update: Recent Developments, Outlook, and IMF Engagement (IMF)
The global food crisis remains a major challenge. Food insecurity fueled by widely experienced increases in the cost of living has become a growing concern especially in low-income countries, even if price pressures on global food markets have softened somewhat since the onset of Russia’s war in Ukraine in February 2022. Targeted assistance to the most vulnerable households combined with policy measures to support trade and agriculture systems, including to better cope with climate shocks, can help countries withstand the fallout of the ongoing food crisis while building longer-term resilience. The IMF, working in close cooperation with other international organizations, has continued to contribute to international efforts to alleviate food insecurity by providing policy advice, capacity development, and financial support through Upper Credit Tranche Arrangements and the new Food Shock Window. New commitments to countries particularly affected by the global food crisis total $13.2 billion since February 2022, of which $3.7 billion has been disbursed as of March 2023.
Tackling gender inequalities in agrifood systems and empowering women reduces hunger, boosts the economy, and reinforces resilience to shocks like climate change and the COVID-19 pandemic, reveals a new report by the Food and Agriculture Organization of the United Nations (FAO).
The status of women in agrifood systems report, the first of its kind since 2010, goes beyond agriculture to provide a comprehensive picture of the status of women working across agrifood systems— from production to distribution and consumption.
The report highlights that globally, 36 per cent of working women are employed in agrifood systems, along with 38 per cent of working men. However, women’s roles tend to be marginalized and their working conditions are likely to be worse than men’s –irregular, informal, part-time, low-skilled, or labour-intensive.
“If we tackle the gender inequalities endemic in agrifood systems and empower women, the world will take a leap forward in addressing the goals of ending poverty and creating a world free from hunger”, says FAO Director-General QU Dongyu in the foreword of the report.
Indeed, the study explains that closing the gender gap in farm productivity and the wage gap in agricultural employment would increase global gross domestic product by nearly $1 trillion and reduce the number of food-insecure people by 45 million.
New report calls for G20 coordination to address causes of food insecurity (WTO)
The report, titled “Rising Global Food Insecurity: Assessing Policy Responses”, was produced at the request of G20 leaders in their G20 Bali Declaration of November 2022, where they asked the FAO and WBG to undertake a mapping exercise on the global response to rising food insecurity, identify any gaps in this response, and recommend further actions to eradicate hunger.
DDG Paugam: Ensuring safe agriculture trade crucial for a sustainable future (WTO)
“Global partnerships like STDF are crucial to help farmers, producers, traders and governments in developing countries address some of the main challenges the world is facing today,” said DDG Paugam. “Around us, we are still grappling with the impacts of the COVID-19 pandemic on our lives and our economies. Climate change is on the rise and has a clear impact on the occurrence of new pests and diseases, and on food safety.”
Brazil’s Lula calls for end to dollar trade dominance (Financial Times)
Brazil’s president Luiz Inácio Lula da Silva has called on developing countries to work towards replacing the US dollar with their own currencies in international trade, lending his voice to Beijing’s efforts to end the greenback’s dominance of global commerce. Kicking off his first state visit to China since taking office in January, Lula called for the countries of the so-called Brics group of nations — which in addition to Brazil and China includes Russia, India and South Africa — to come up with their own alternative currency for use in trade.
Development Committee: The Managing Director’s Written Statement April 2023 (IMF)
Tentative signs of stabilization of the global economy have receded with recent financial sector turmoil. Headline inflation is moderating on the back of retreating commodity prices, but sticky underlying price pressures are complicating disinflation efforts. While growth in low-income developing countries (LIDCs) has been higher than in the rest of the world, its level is insufficient to address momentous challenges that range from combatting poverty to coping with climate change. Moreover, elevated debt levels and higher borrowing costs due to tighter global financial conditions leave policymakers with little fiscal space. Containing inflation, safeguarding financial stability, and protecting the vulnerable remain immediate policy priorities. At the same time, countries need to preserve or—in some cases—restore debt sustainability, which often requires better targeting of fiscally costly support measures taken in response to the COVID and commodity price shocks. Multilateral cooperation is more important than ever as many challenges are global, but it is acutely under threat from fragmentation.
Guterres urges greater funding for countries in need (UN)
In a recent signed article, United Nations Secretary-General Antonio Guterres called on the G20 to approve an “SDG Stimulus” to scale up affordable long-term financing for countries in need by at least $500 billion a year.
“Sixty percent of low-income countries are currently at high risk of or in debt distress – double the number in 2015. Since 2020, African countries have spent more on debt service payments than on healthcare,” he noted.
The SDG Stimulus plan, by supporting the UN’s Sustainable Development Goals, “aims to boost long term investments in sustainable development, particularly where transformation is most urgent: renewable energy, sustainable food systems, and the digital revolution,” he said.
“Developing countries need financing and technology to go through these transitions with minimal social disruptions,” he added.
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President Ramaphosa meets business leaders ahead of Investment Conference (SAnews)
President Cyril Ramaphosa has met with business leaders from key sectors of the economy ahead of Thursday’s South African Investment Conference (SAIC). At a media briefing on Wednesday on the President’s upcoming engagements, Presidential spokesperson Vincent Magwenya said economic interventions, economic growth and job creation were the issues discussed at the meeting.
“The President has agreed with business that there is a need for acceleration towards the resolution of challenges impacting key economic enablers, namely energy, transport and logistics, and crime and corruption.
“On the eve of the fifth South African Investment Conference, President Ramaphosa is highly enthused by the collaborative spirit that continues to guide engagements between government and business and more importantly, the commitment shown by business to take collective responsibility in resolving some of the challenges that are facing our country and the economy,” said Magwenya.
SA must avoid agro trade fallout with neighbours (CAJ News Africa)
South Africa’s agricultural export expansion drive to Asia should not be at the expense of existing markets, mostly the Southern African Development Community (SADC) regional bloc. In addition, the country must ensure cordial trade relations with fellow African nations in this drive to broaden its export base. This is the view of locally-based agricultural expert, Wandile Sihlobo.
Sihlobo, chief economist at the Agricultural Business Chamber (Agbiz), maintained South Africa should expand its markets to Bangladesh, China, India, Saudi Arabia and South Korea but existing markets should not be disregarded.
“We should actively engage with existing markets to promote further growth of exports of South African agricultural products,” the economist stated.
Flour price to remain high as State fails to get cheap maize (Business Daily)
Kenyans will continue waiting for cheaper flour after it emerged that the government’s search for cheap maize was facing headwinds on limited supply of the grain on the international market. The Ministry of Agriculture has opened negotiations with traders aimed at reviewing the Sh4,200 per 90-kilo bag that the government had issued to maize importers as the landing price under a duty waiver.
Agriculture Principal Secretary Harsame Kello says it has become difficult for traders to find cheap maize owing to a tight competition with other African countries such as South Sudan, which is offering higher prices.
“Importers failed to match the price that the market is demanding out there because of a scarcity in the world market, we are now negotiating on a new price with the traders,” said Mr Kello.
The requirement to commit on landing price saw millers opt out of imports citing that it would be difficult to get maize at that price, given the shortage of non-genetically modified maize and a weakening shilling.
CS Kuria Lifts Ban on Exportation of Raw Macadamia (Capital News)
Trade and Investment Cabinet Secretary Moses Kuria has lifted the ban on the exportation of raw macadamia nuts for a period of one year in a bid to open up the global markets. Speaking in Kirinyaga, Kuria said that the current prices of Macadamia nuts had gone as low as Sh20 shillings per kilogram which he termed exploitative to farmers who toiled the land only for middlemen to reap the profits.
Kuria said that the lifting of the ban on the exportation of raw nuts will open up marketing outlets and attract across the world to allow competitiveness so that farmers can sell to the highest bidders.
Budget misalignment expected to hurt high-impact sectors – IPF (Capital Business)
Kenya’s economy is headed for a tougher run due to a growing burden of debt servicing, the government’s inability to implement austerity measures, and a worsening global economic slowdown. This is according to projections by the Institute of Public Finance (IPF), which noted that the government’s decision to reduce budget allocations to high-impact sectors like Agriculture and Social Protection that have the potential to support inclusive growth.
Speaking during the launch of the Financial Year 2023/2024 Annual National Shadow Budget, IPF CEO, James Muraguri pointed out that it is concerning that the budgetary allocation to the priority regions does not meet the government’s pledges.
“There seems to be a significant misalignment or less prioritization of critical sectors of high impact. The agriculture sector, which employs more than 40 percent of the total population and 70 percent of the rural population, does not seem to receive the attention that it deserves. This has a net effect of leading to food insecurity where it is estimated that by June 2023, 5.4 million Kenyans are projected to face elevated levels of acute food insecurity,” said Muraguri.
Egypt, South Korea to sign deal by April-end to facilitate trade movement (ZAWYA)
Minister of Finance Mohamed Maait has said that Egypt has become more attractive to foreign investments with its promising and attractive opportunities, advanced infrastructure capable of meeting all the needs of investment and production activities, a legislative environment, tax and customs incentives, and the incentive efforts taken by the government to empower the private sector, including the state ownership policy document and the golden licence.
He added that a memorandum of understanding (MoU) will be signed between the Egyptian and South Korean customs authorities at the end of this month to enhance customs cooperation and facilitate trade movement.
Maait affirmed, during his meeting with the South Korean ambassador in Cairo today, Egypt’s aspiration to increase the investments of Korean companies, in a way that contributes to maximizing Egyptian production and export capabilities, and strengthening the partnership between the two countries, as the investments of Korean companies are a leading model in the electronics industry in the Egyptian market, and play a pivotal role in deepening the national industry, increasing the proportions of the technological component in the industry, and providing new job opportunities.
Prolonged border closure hurting revenue generation at Seme border — Customs (Vanguard)
The Nigerian Customs Service, NCS Seme Area Command has lamented the severe impact of prolonged border closure on revenue generation at the Seme border.
Customs Area Controller Seme Command, Comptroller Dera Nnadi, gave the figures during a media briefing of the First Quarter, Q1 performance of the Command and the handing over of fake $6 million to the Economic and Financial Crime Commission, EFCC as well as handing over of other seized items to partner government agencies at Seme, Badagry.
He said: “The major source of revenue of the Command (import/export) have not been enhanced since the opening of the land Borders as directed by the Federal Government of Nigeria as the traders are still bracing with the challenges of having been out of business for over two years.”
‘Incoming govt must deepen reforms on economic, export diversification’ (The Nation)
Civil Society Legislative Advocacy Centre/ Transparency International Nigeria (CISLAC/TI-Nigeria) has urged the incoming government to deepen economic and export diversification, focus on production, improve business climate and macroeconomic stability. The organisation reiterated the need to strengthen ease of doing business and block leakages for corruption.
Executive Director, Ibrahim Musa (Rafsanjani), spoke yesterday at an interactive session in the spring meeting of World Bank and International Monetary Fund (IMF) in Washington DC, United States.
Rafsanjani, in a statement, noted the incoming government should sustain policies with potential of driving growth and development. Deliberate efforts, he said, must be made to avert placement of priorities, reverse policies, sustain and implement new ones.
Nigeria’s debt to World Bank grows to nearly $14b (TheNiche)
Nigeria’s debt to the World Bank alone jumped to $13.9 billion in December 2022, an increase of $1.5 billion from 2021 – apart from the latest $800 million loan granted by the bank to cushion the effects of anticipated fuel subsidy removal.
Reliance on the World Bank by Nigeria has increased in the past three years, particularly after the Covid-19 lockdown.
Total debt owed the World Bank was $10.1 billion in 2019, which rose to $12.5 billion in 2020. Between 2019 and 2022, Nigeria’s debt to the World Bank increased by $3.8 billion.
Nigeria probes sale to China of stolen 48m barrels of crude oil (The East African)
Nigerian lawmakers have begun a probe into the sale of stolen 48 million barrels of crude oil to China.
“It is quite alarming that illegal deals with China cost Nigeria $2.4 billion revenue loss from the sale of stolen 48 million barrels,” Nigeria’s Speaker of the House of Representatives Femi Gbajabiamila said in Abuja on Tuesday, at the opening of the ad hoc committee set up to probe the deals.
He said Nigeria loses $700 million monthly to oil theft, a menace that impacts negatively on the country’s national budget.
He noted that the oil and gas sector remained the main contributors of Nigeria’s economy as it accounted for its 95 percent of foreign exchange earnings and 80 percent of annual budgeted revenue.
ECOWAS to fast-track regional ID card project to boost financial inclusion, integration (Biometric Update)
The World Bank-supported West Africa Unique Identification for Regional Integration and Inclusion (WURI) programme is set to enjoy new impetus after members of the steering committee met in Nigeria’s commercial capital Lagos last week to okay the overall program development objectives.
Already, the first phase of the $395 million project, which is meant to provide unique proof of identity for easy access to public services, has been piloted by Cote d’Ivoire and Guinea and is in the process of being implemented by Benin, Burkina Faso, Niger and Togo, according to the ECOWAS Commission, which is spearheading the project.
The project, which is in two phases, will be expanded by all the other member states of ECOWAS as a way of providing legal and acceptable identity for all citizens of the regional economic and political bloc, writes Premium Times. About 196 million people within ECOWAS are said not to have any form of legal identity, despite the high level of regional mobility within the bloc.
Kenya only economy in East Africa with an upward economic growth review (Business Daily)
Kenya is the only economy in East Africa whose projected economic growth for 2023 has been revised upwards by the International Monetary Fund (IMF) in its latest review, giving Nairobi a major confidence boost as it fights an economic crisis.
In the just-released World Economic Outlook, IMF now projects that Kenya will grow at a rate of 5.3 percent in 2023 from 5.1 percent forecasted in October 2022.The IMF has revised projections for Rwanda, Uganda, Burundi and the Democratic Republic of Congo (DRC) downwards.
This upward revision of projected growth implies that Kenya is poised to generate Sh25.5 billion more in economic output in 2023 than had been earlier projected by the IMF. The fund also expects Kenya’s economy to grow faster than had been earlier projected with the fund projecting moderate acceleration in the economy’s growth momentum to 5.4 percent in 2024.
The circular economy: A critical player in unlocking African economic growth and prosperity (Engineering News)
Africa is on a trajectory of explosive population growth with immense economic, environmental and social challenges if we continue business as usual.
By the late 2060s, sub-Saharan Africa will be the most populous of the eight geographic regions, ballooning to 3.44 billion inhabitants by the end of the century. Ever-depleting resources will risk biodiversity collapse and entrench the continent in an increasingly desperate situation of poverty, with sub-Saharan Africa projected to have 86 percent of the world’s extreme poor by 2050.
To lift people out of the poverty cycle we need locally-driven economies that promote economic growth, generate wealth and create those 7.3 million jobs per year. If this growth is driven with the current waste creating linear business model, this would generate a massive ecological footprint. The negative effects of which could wipe out the benefits of those gains.
Circular business models design out waste, keeping products in use for longer and re-using raw materials to eliminate waste, water, energy, materials and pollutants at source, and reduce total waste to landfill. They create the competitive advantage of a more efficient business model, present opportunities for bottom-up innovation, stem the onslaught of biodiversity loss and address climate change.
Piling debt in Africa to feature in IMF, World Bank meeting in US (The East African)
IMF and World Bank chiefs may be meeting thousands of kilometres from Africa, but the upcoming annual gathering in Washington is eliciting new calls to have piling debt addressed.
The two global lenders are key in funding budgetary deficits in most of East Africa. But this year’s annual meetings often known as Spring Meetings in Washington DC, are also coming amid the clamour for climate change funding and a need for cushioning efforts for the poor.
Across East Africa, economists are already warning that the growing debt levels could push regional economies into financial distress.
“It is alarming, as past funding trends show, that the bulk of climate finance is channelled through loans, further increasing already high debt levels,” said Prof James Gathii of Afronomicslaw.org.
“Without adequate interventions on the loss and damage as well as adaptation fronts, African countries are likely to borrow approximately $1 trillion over the decade for their climate response,” Gathii said.
Africa needs to bridge infrastructural gaps, provide political stability to drive growth - Aidoo (Businessday Nigeria)
Joseph Aidoo Jr, executive director at Devtraco Group in Ghana has implored African governments to improve infrastructure, promote political stability, and enhance the business environment to drive growth and realise the continent’s full potential.
“Embracing technology, nurturing entrepreneurship, and promoting investment in critical infrastructure can create a business-friendly environment that supports sustainable economic growth and development across the continent,” he said.
He emphasised that addressing critical challenges, such as poor infrastructure, political stability, and poor business environment, will do Africa well. Nevertheless, he expressed his optimism about the future of Africa, citing significant progress in economic growth, infrastructure development, and technological advancements across the continent in recent years.
Will France be able to continue exporting its wheat to Africa? (Africanews)
Will France still be able to export cereals to Africa on April 25? The government wants to be reassuring, while producers and traders fear that they will no longer be able to use an insecticide (phosphine) in direct contact with the grains, which would close the door to their historical customers.
“There is nothing to worry about for our exports,” French Foreign Trade Minister Olivier Becht said on Tuesday, while his Agriculture counterpart, Marc Fesneau, underlined the major role that France would continue. to stand for global “food security”.
The government was questioned by several deputies on the consequences of a decision by the French Health Security Agency (Anses), dating from October 2022, which does not authorize, from April 25, the use of PH3 insecticide (or phosphine ) in the fumigation of the holds of ships only on condition that it is not “in direct contact with cereals”.
“If no decision is taken, on April 25, we will no longer be able to export to countries such as Togo, Cameroon, Algeria, or Egypt, which require in their specifications fumigation in direct contact with grains,” Eric Thirouin, president of the Association of French Grain Producers (AGPB), told AFP.
IMF review seeks better central bank governance (Business Daily)
The International Monetary Fund (IMF) has reviewed the governance policies of central banks around the world to minimise risks of misuse of loans and default on payments.
The Washington DC headquartered institution recently published a safeguards assessment policy report following the review by an external expert panel that was chaired by Central Bank of Kenya (CBK) chairperson Mohammed Nyaoga.
The Nyaoga team made several key recommendations to the IMF that have been adopted, marking another milestone in tightening the operations of central banks.
G7 to discuss digital currency standards, crypto regulation (Reuters)
Group of Seven (G7) advanced economies will consider how best to help developing countries introduce central bank digital currencies (CBDC) consistent with appropriate international standards, Japan’s top currency diplomat Masato Kanda said on Tuesday. The move will be among key themes of G7 discussions that Japan chairs this year, as part of efforts to address challenges the global community face from fast-moving digital technology, he said.
“As a priority of this year, the G7 will consider how best to help developing countries introduce CBDC consistent with appropriate standards, including the G7 public policy principle for retail CBDC,” he said.
UNCTAD in its latest Trade and Development Report Update released on 12 April warns that developing countries are facing years of difficulty as the global economy slows down amid heightened financial turbulence.
Annual growth across large parts of the global economy will fall below the performance registered before the pandemic and well below the decade of strong growth before the global financial crisis.
The UN trade and development body estimates that interest rates hikes will cost developing countries more than $800 billion in foregone income over the coming years. UNCTAD expects global growth in 2023 to drop to 2.1%, compared to the 2.2% projected in September 2022, assuming the financial fallout from higher interest rates is contained to the bank runs and bailouts of the first quarter.
Trade and Development Chart: The Rise of China (World Bank Blog)
Since China entered the World Trade Organization on December 11, 2001, it has become the most important trading partner to the world. This chart shows the number of countries for which either China or the United States is the top trading partner in merchandise goods. China gained prominence in sub-Saharan Africa, while the US remains the most important partner for Latin America and the Caribbean.
United States formally accepts Agreement on Fisheries Subsidies (WTO)
DG Okonjo-Iweala said: “I am delighted and grateful to receive the United States’ formal acceptance of the WTO’s Agreement on Fisheries Subsidies. This strong show of support by the United States for the WTO’s work toward ocean sustainability marks a pivotal increase in momentum among the membership to ensure this landmark agreement enters into force. US leadership is vital to the WTO and to multilateralism. I look forward to continuing to work with the United States to ensure that the WTO responds to the needs of people and the planet.”
United States Trade Representative Katherine Tai said: “The United States has been a leader in protecting our shared environment from harmful and unsustainable practices, including our oceans and marine resources — and those whose livelihoods depend on them.”
“We are proud to be among the first WTO members to accept this agreement, which is the first ever multilateral trade agreement with environmental sustainability at its core. It will help improve the lives of fishers and workers here in the United States and elsewhere”.
Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development: Communiqué (IMF)
Extract: Rising trade protectionism amid economic uncertainties and slow progress in global trading system reforms are key concerns. Global trade is important for sustainable inclusive growth and poverty reduction, but many EMDEs experience unequal distribution of the benefits of trade, limited market access and unfair trade practices, especially the agriculture sector, which is often the main source of livelihood for the poor. Some recent policies meant to resuscitate domestic production or meet net-zero targets have the potential to increase the relative costs of some tradable commodities, which deviates from the principle of comparative advantage, distorts trade and investment decisions and further affects developing countries. We call on the IMF and WBG to analyze the costs and benefits of free trade and globalization, including the threats to economic security during crisis such as the pandemic when concentration risks and supply chain risks upended the global markets. We urge World Trade Organization support in the design of a robust multilateral trade system, so that agreement on basic principles, including on nontariff barriers and services could be reached at the multilateral level. In this regard, we welcome the IMF review of the Role of Trade to help guide policy advice on increasing supply-chain resilience while avoiding distortive protectionist measures. We urge that measures taken to combat climate change should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade.
Climate change is one of the most critical macroeconomic and financial policy challenges that IMF members face in coming decades. Capital is among the most important enablers of climate action, but not enough is getting to the people and places that need it most.
As massive global investments to reduce emissions and boost resilience are required—we need a major shift to harness public and, especially, private financing. That includes substantially more concessional finance that can lower risk and drive private sector finance more efficiently to emerging and developing countries. It also requires that both the public and private sectors finance all components of the energy transition, including both the scaling of clean energy and the managed phaseout of fossil fuels on an accelerated time frame.
To achieve this objective, all countries need robust climate policies that accelerate the green transition, and stronger mechanisms to promote cooperation and risk-sharing among stakeholders.
ICYMI: World Bank Group President David Malpass: Spring Meetings 2023 Positioning Speech (World Bank)
“Developing countries have suffered the most from this onslaught of crises. The [COVID-19] pandemic increased the global extreme poverty rate from 8.4 to 9.3 percent, the first recorded increase since we started keeping count…. Now, a growing number of developing countries are facing the prospect of major domestic crises, with economic growth slowing, poverty and hunger on the rise, public debts reaching unsustainable levels amid rising interest rates, ineffective mechanisms for resolving external debt distress, underinvestment, and growing populations.”
“Confronted by these developments, we have the responsibility to forcefully reassert core economic principles for development in every country. I will highlight four:
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First, achieving macroeconomic stability is critical – not least because fiscal recklessness compromises essential services and inflation penalizes the poor the most.
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Second, sound policies to promote private investment should always remain a top priority – because without them there would be no economic growth.
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Third, free and fair international trade must be nurtured – because it promotes efficiency and creates enormous opportunities for growth and convergence.
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Finally, the international community’s mechanisms to finance the provision of global public goods must be strengthened – because climate costs, conflict, and pandemics will set back human progress everywhere unless the effectiveness of global efforts improve.”
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Empowering Farmers: Enhancing Zambia’s Horticultural Exports (Trade for Development News)
Zambia’s horticultural sector has faced significant challenges in recent years, making it difficult for local farmers to export their produce to the global food market. From time-consuming border processing to inadequate resources and legislation, the sector has been facing a myriad of obstacles that have hindered its growth and competitiveness.
Farming is a demanding sector, particularly for those seeking to compete in the global market. Many farmers in Zambia are unable to meet international standards and other requirements in importing countries that can help them implement good agricultural practices and stand out on the world stage. However, despite the challenges, there are some beacons of success.
SA eyes investment commitments at the 5th SAIC (SAnews)
President Cyril Ramaphosa will address the South Africa Investment Conference (SAIC) on Thursday. The SAIC will be attended by delegates from varying industries in South Africa and across the world at the Sandton Convention Centre in Johannesburg.
In its 5th year since inception, President Ramaphosa convened the South Africa Investment Conference with an objective of achieving R1.2 trillion in investments targets. Investors heeding the call have over the last four conferences declared R1.14 trillion in investment commitments.
The Presidency said the new investments also significantly contribute to South Africa’s national goals of socio-economic development to create sustainable jobs, reduce poverty and drive back inequality. These investments have also contributed to a substantial increase in local production and encouraged efforts to buy local.
Govt communication must improve if more investment is to be garnered – BLSA (Engineering News)
Of all the factors impacting on investor confidence in the country, Business Leadership South Africa (BLSA) CEO Busi Mavuso says government’s communication to the market is one that requires extensive work.
She cites in her latest weekly newsletter the example of the debacle around the exemption given, and then withdrawn, to State-owned power utility Eskom to allow it to not report fruitless and wasteful expenditure in its yearly financial statements.
Foreign Trade: Nigeria’s outbound cargo volume remains weak (Vanguard)
Nigeria’s hope of witnessing export-driven economic growth through air cargo remains a far cry, as the sector’s share of total trade volume appears abysmal. This is coming against the backdrop of the country’s inability to facilitate more export by air despite the availability of goods in the country.
For instance, Nigeria was only able to process goods for exports valued at N34 billion in the fourth quarter of 2022, Q4’22, an increase of nine per cent when compared to N31 billion recorded in Q3’22.
According to the National Bureau of Statistics, NBS, Foreign Trade in Goods Statistic for Q4’22, the country also witnessed a significant decline of 11 per cent in inbound cargo at N245 billion recorded in Q4’22 from N271 billion in Q3’22.
Nigeria Caught In Anti-export Bias – Trade DG (Leadership)
Director-general of the Nigerian Office for Trade Negotiation (NOTN), Yonov Agah, has expressed concern over Nigeria’s disadvantaged position in foreign trade, saying the largest African economy is held up in anti-trade bias engineered by bad government policies.
Agah who is Nigeria’s chief trade negotiator said there is need for national conversations on how the nation can get rid of the anti-export challenges.
When government policies are not government oriented, they create rents. And businesses like rents because it’s cheap money.”
Kenya-China trade gap grows despite diplomatic charm (Business Daily)
The Trade deficit between Kenya and China has widened for the second year in a row despite aggressive efforts by Nairobi to push Beijing to open up its markets in refreshed export strategy in 2018.
Official trade statistics show the deficit — the difference between exports and imports — grew to the highest levels since 2017 before Kenya made China the top target destination under Integrated National Exports Development and Promotion Strategy in July 2018.
The deficit rose to $3.62 billion (Sh485.08 billion under the prevailing exchange rate) in 2022 from $3.51 billion (Sh470.34 billion) in the prior year, according to data collated by the Central Bank of Kenya. That was the highest goods trade deficit between the pair since $3.68 billion in 2017, the data says.
New port can boost Senegal economy, but connections must improve (The Loadstar)
The new port of Ndayane may be DP World’s “largest” investment in Africa, but any hope of it helping unlock the continent’s economies depends on increasing intra-regional connectivity.
Construction of the £1.2bn deepwater port has recommenced after a year-long delay, after president Macky Sall said securing the government’s share of the financing had been resolved. Now there are surging expectations of what the port will do for Senegal’s economy, at least.
“The port of Ndayane and the associated economic zone will reinforce Senegal’s position as a major trade hub and gateway in West Africa,” a DP World spokesperson told The Loadstar.
Textiles in tough times as EAC proposes top taxes (Business Daily)
Kenya’s textile industry will be hit hard following a proposal by the East African Sectoral Council on trade to move tax paid on imported apparel to the highest band in order to spur local production.
The council, which is an apex organ for investment and trade in the region, wants the duty levied on textiles under the Common External Tariff (CET) to be moved to 35 percent –the highest tax band under the EAC.
The council says the move is aimed at promoting production of cotton within the region and cutting overreliance on imports, which has hindered development of the sector in the regional.
Revised East African single currency schedule upsets lawmakers (The Citizen)
Members of the East African Legislative Assembly (Eala) have criticised revised dates for the single currency economy in the region. They said frequent changes in time lines and delays were not only counterproductive but had also put the commitment of some regional leaders in question.
Abdullah Hasnu Makame, an MP from Tanzania, wondered why dates for attaining full monetary union kept on changing without justifiable reasons.
“That the monetary union would be up and running by 2024... Then the Council (of Ministers) came and said we are going to extend the delivery time,” he told the just-ended House sitting in Bujumbura.
The East African Community (EAC) Monetary Union Protocol, which was signed on November 30, 2013, aims to converge the currencies of the partner states into a single currency. The convergence of the currencies of all seven EAC partner states into a single currency was to take 10 years, which means the regional bloc was to have a common currency by 2024. In the run-up to achieving a single currency, the member countries have to harmonise their monetary and fiscal policies, as well as their financial, payment, and settlement systems.
East Africa’s cross-border electric trains set to speed up intra-African trade (The Independent Uganda)
Tanzania and Burundi have floated a tender for designing and constructing an electrified railway that will initially connect the two countries and pass through the Democratic Republic of Congo (DRC), as the countries look to tap AfCFTA, the world’s largest single market, and create the continent’s second multinational electrified railway.
About 282 Kilometer of an electrified Standard Gauge Railway (SGR) line will be built from Uvinza in Tanzania (off the Tabora – Kigoma SGR line), across the international border along Malagarasi river to Musongati and onwards to Gitega, both in Burundi.
“The two Governments of Tanzania and Burundi have entered into a bilateral agreement to implement this multinational project as a single project within Tanzania and Burundi territories,” according to the tender document. The project will be implemented for a period of five years.
Upon completion, it is set to become Africa’s second cross-border electrified rail after Ethiopia and Djibouti launched the continent’s first fully electric multinational railway line, in 2016.
The Board of Directors of the African Development Fund has approved $8 million in funding toward the establishment of a digitally interoperable unique bank identification system and harmonised customer identification framework for The Gambia, Guinea, Liberia and Sierra Leone.
Implementation of the project will commence in July 2023, led by the West African Monetary Institute (WAMI), working with central banks of the participating countries and in close collaboration with banking and non-banking financial service providers.
The project is expected to enhance financial sector efficiency within the participating countries, leading to increased access to finance and further regional integration efforts. Approval of funding from the Bank’s concessional lending window was made on 29th March. The new bank identification system will link banking accounts of individuals across different financial service providers.
AfCFTA: Tackling Counterfeits Substandard Products Through PAM (Leadership News)
Experts said the questions begging for answers are how much of this projected sum of $3.4 trillion will be accrued to the country? How will much of an impact will this pact have on Nigerian businesses? Needless to state that the country’s over 200 million population is a huge market that is very vital to the success of the trade agreement.
Based on a recent survey of 1,804 Nigerian manufacturing enterprises, six out of 10 businesses expect the AfCFTA to lead to a reduction in material and labour costs, increase production capacity, expand the market and consumer size, and reduce prices.
Overall, Nigeria’s small and medium-sized businesses are optimistic about the opportunities created by AfCFTA, although with mixed feelings grounded in concerns about rising foreign competition and dumping of substandard goods.
The Manufacturers Association of Nigeria (MAN) also re-echoed the same concern. It reemphasised that dumping is a huge challenge that may hinder manufacturers, even as it stressed the need to ensure that all participating countries obey the Rule of Origin policy that is expected to govern the trade.
Pan-African Private Sector Trade and Investment Committee (PAFTRAC) Survey looks to assess the impact of external shocks on Africa’s private sector (The Guardian Nigeria | APO)
The Pan-African Private Sector Trade and Investment Committee (PAFTRAC) Africa CEO Trade Survey has officially launched today, offering a unique opportunity for CEOs and business leaders to share their insights and experiences of trading in Africa.
The survey aims to capture the opinions and views of CEOs and senior executives from across the continent, providing valuable insights into the challenges and opportunities facing African businesses.
This year’s theme will be “Realising the AfCFTA in an era of disruption”. The implementation of the Africa Continental Free Trade Agreement, AfCFTA, has been disrupted by various challenges, including the COVID-19 pandemic, the Russia-Ukraine war, and other external shocks. These challenges have highlighted the need for African countries to adapt to the changing global environment and seize the opportunities presented by the AfCFTA to transform their economies and societies. The Africa CEO Trade Survey will look to capture the sentiment of Africa’s private sector to inform policy-makers in the implementation of trade policies to fulfil the potential of the AfCFTA.
Stakeholders commit to strengthen collaboration to promote intra Africa trade (UNDP)
Stakeholders from across the public and private sectors pledged to strengthen collaboration with Governments to address infrastructure deficit, ineffective trade facilitation processes, and invest in innovation and technology to promote trade across borders in Africa, to accelerate sustainable development.
This commitment was made at the maiden Africa Sustainable Supply Chain Summit hosted by the International Chamber of Commerce (ICC) in Ghana, in partnership with the United Nations Development Programme (UNDP), and the Africa Investment Group in Accra on 29-30 March 2023.
“Growing competitive African businesses for the One Africa market requires better supply chain governance and more investment by multiple actors including diaspora investors. It requires collaborative approaches to attract innovative and new forms of financing for MSMEs”, said Angela Lusigi, UNDP Resident Representative in Ghana.
Egyptian leader lauds African Development Bank for supporting continent through tough times (AfDB)
The President of the Arab Republic of Egypt Abdel Fattah El-Sisi has commended the work of the African Development Bank Group in helping the continent to deal with the impact of global economic challenges.
The Egyptian leader on Tuesday received the President of the African Development Bank Group Dr. Akinwumi Adesina in the capital Cairo.
Adesina was in Egypt to familiarize himself with preparations ahead of the Bank Group’s 2023 Annual Meetings scheduled for 22-26 May in the resort city of Sharm El Sheikh. Up to 13 heads of state and government are expected to join the Bank’s Governors, executive directors, development partners and management at the meetings to discuss Mobilizing Private Sector Financing for Climate and Green Growth in Africa.
Launched: New $1.5m AfDB-funded Project to Improve Electricity Regulation in COMESA (COMESA)
The African Development Bank (AfDB) and the Common Market for Eastern and Southern Africa (COMESA) have launched a new regional initiative to enhance the sustainability of the electricity sector in Eastern and Southern Africa through harmonized regulatory frameworks.
The initiative, named “Regional Harmonization of Regulatory Frameworks and Tools for Improved Electricity Regulation in COMESA,” aims at effective, transparent, uniform, and enforceable regulatory frameworks in the region. The ultimate objective is to stimulate cross-border electricity trade and improve energy access in the COMESA region
The project comprises three key components, including: (i) the Elaboration and Adoption of Regional Electricity Regulatory Principles, and Regulatory and Utility Key Performance Indicators based on the AfDB’s flagship Electricity Regulatory Index for Africa for the COMESA region; (ii) Harmonised Comparison of Electricity Tariffs and Cost Reflectivity Assessment Framework Tool; and (iii) the development of an Information and Database Management System.
Liberia, the Only Country in Africa Yet to Ratify the Africa Continental Free Trade Area (FrontPageAfrica)
Liberia, an ECOWAS member state where importers mostly experience high tariffs on goods, which lead to inflation of prices on the local market, is yet to ratify the Africa Continental Free Trade Area (AfCFTA).
The agreement has been signed by 54 of the 55 African Union member states, with 44 countries depositing their instruments of ratification. However, Liberia, which signed the AfCFTA document on March 21, 2018, is yet to ratify.
“If Liberia does not ratify the AfCFTA, it means Liberia is no longer a state party. Therefore, Liberia will not benefit from preferences negotiated within the agreement,” said Dr. Olu Alaba, an expert on trade.
“Ratification will legally give Liberia the leverage to export to ECOWAS countries tariff-free and have other countries export to it as well under similar privileges. But if Liberia does not ratify, it means the country has not formally consented to the agreement and would not benefit from cross-border trades,” he said.
Cameroon seeks to rejoin AGOA amid slowing export revenues (Africanews)
Cameroon is looking to rejoin the US’s trade initiative for Africa, as the country works to boost export revenues amid falling foreign exchange earnings. Cameroon’s economy minister Alamine Ousmane Mey said his country has started talks with Washington for admission back into Africa Growth and Opportunities Act (AGOA), which grants African countries tariff-free access to the U.S. market.
The International Monetary Fund (IMF) forecasts that Cameroon, a Central African oil producer, will record 4.3% economic growth this year. The Fund has classified Cameroon as being at high risk of debt distress. But, the Fund added, that Yaounde’s debt could still be sustainable with with sound fiscal reforms and management.
In 2019, the US kicked Cameroon out of the AGOA program for rights violations by security forces in the restive southwest and northwest regions.
The global powers in new scramble to win over Africa (The East African)
Three global powers are in a race to win over Africa, the continent’s market of more than a billion people and tap its natural resources. Russia, China and the US are engaged in spirited charm offensives centred around political, military, economic and cultural initiatives.
Competing with both China and Russia is Washington’s ‘African reset’ initiative, in which the US sent Treasury Secretary Janet Yellen on a tour to Senegal, Zambia and South Africa, along with similar outings to Africa by Secretary of State Anthony Blinken.
World economic outlook, April 2023: A rocky recovery (IMF)
The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia’s invasion of Ukraine, and three years of COVID.
The baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024. Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent. Global headline inflation in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflation’s return to target is unlikely before 2025 in most cases.
Global Economic Recovery Endures but the Road Is Getting Rocky
Inflation is slowly falling, but economic growth remains historically low and financial risks have risen
Interest Rates Likely to Return Toward Pre-Pandemic Levels When Inflation is Tamed
How close will depend on the persistence of public debt, on how climate policies are financed and on the extent of deglobalization
How to Tackle Soaring Public Debt
Timely and appropriate fiscal policy adjustments can reduce debt, but countries in distress will need a more comprehensive approach
Fragmenting Foreign Direct Investment Hits Emerging Economies Hardest
Long-term losses of 2 percent of global output due to shifting foreign direct investments underscore why global integration needs robust defense
Action Needed on Debt Crisis (World Bank Blog)
At the World Bank Group-IMF Spring Meetings this week, I will be advocating strongly for sound development solutions for the mounting challenges facing developing countries. Resolving the impasse in debt restructurings, especially for the world’s poorest countries, is going to be at the center of discussions.
As we bring together the Global Sovereign Debt Roundtable, I see two fundamental challenges: the debt restructuring process is not moving much, and there hasn’t been enough discussion yet on ways to take action toward debt sustainability. Creditors are spending vital months discussing issues that should be agreed on beforehand –the steps in the restructuring process, the process and timeline to reconcile debts, and how to handle cut-off dates. The most important topic – how to measure and apply comparability of debt treatment (fair burden sharing among creditors during a debt restructuring) – is still up in the air. All these points are part of every restructuring and need to be discussed and agreed. This Roundtable meeting could at least start the discussion. There needs to be consensus on these to get to the next step that really matters for countries with unsustainable debt – how to restructure the debt in a way that achieves sustainability.
It is urgent that we make progress: countries need to achieve transparent, sustainable debt burdens in order to restart investment, which has slowed to a standstill.
India wants WTO to be more progressive, more listening to other countries: FM Sitharaman (Times of India)
India wants the World Trade Organization to be more progressive and listening to other countries, Union Finance Minister Nirmala Sitharaman said Monday asserting that the WTO needs to give more space to the countries which have something different to say and not just hear.
“India’s attempt to talk to the WTO, talk in WTO have all faced with just no moment. The other classic example, which is in the minds of many of the emerging market countries is the electronics transmission related wall. Isn’t that since 1998, all of us are sitting and watching that you can’t do anything on the customs route for so much that is happening in the electronics business. It’s hitting the kind countries very differently,” she said.
“Since 1998, there has never been a need for reviewing it. All that I’m asking is that. And why wouldn’t every ministerial conference, which happens, ever, ever, ever take up this for discussion. It doesn’t take. The moratorium continues. So, it shouldn’t be difficult for you to appreciate. So when countries will have to speak at the WTO, it has to be on very many issues on which decision has not happened for over decades,” Sitharaman said.
DDG Ellard urges prompt acceptance of Fisheries Subsidies Agreement, completion of talks (WTO)
Let me start with the ways in which this new binding, multilateral WTO Agreement is highly significant and meaningful.
First, by prohibiting certain forms of fisheries subsidies that contribute to the most harmful fishing practices, the Agreement delivers on UN Sustainable Development Goal Target 14.6, after more than 21 years of negotiations — the first SDG target addressed through a new multilateral agreement. This outcome is a result of leadership, pragmatism, and commitment to both multilateralism and environmental sustainability by all WTO Members.
Second, the Agreement marks only the second time since the WTO’s creation that our Members have added a new multilateral agreement to our rulebook.
Third, the Agreement on Fisheries Subsidies is the first WTO Agreement with a broad environmental sustainability objective. The operation of the new disciplines will make fishing — and the ocean ecosystem — more sustainable by prohibiting subsidies to illegal, unreported, and unregulated fishing — or IUU fishing — as well as subsidies to fishing overfished stocks, and subsidies to fishing on the unregulated high seas.
Energy Transition Spending Surpasses Fossil Fuel Investments: 2023 FSDR (IISD)
The UN has published the 2023 report on financing for sustainable development, which calls for “massive” investments in sustainable transformations in electricity, industry, farming, transportation, and buildings, to close the widening development gap between countries, meet climate goals, and achieve the SDGs.
The Financing for Sustainable Development Report (FSDR) 2023 themed, ‘Financing Sustainable Transformations,’ highlights some positive findings on financing for sustainable development.
While the energy crisis, triggered by the war in Ukraine spurred global spending on the energy transition, which in 2022 rose to USD 1.1 trillion, surpassing fossil fuel investments for the first time, most of this spending was concentrated in developed countries and China. The green economy became the fifth largest industrial sector by market value, estimated at USD 7.2 trillion in 2021. Between 2021 and 2022, the world added 338 million regular internet users, representing an increase of just shy of 1 million additional people per day.
Supply of critical raw materials risks jeopardising the green transition (OECD)
A significant scaling up of both production and international trade of critical raw materials is needed to meet projected demand for the green transition and achieve global net zero CO2 emissions targets.
A new policy paper on Raw Materials for the Green Transition: Production, International Trade and Export Restrictions, shows the price of many materials – including aluminum and copper – have reached record highs, driven by the repercussions of the COVID-19 pandemic, trade tensions and the continuing consequences of Russia’s invasion of Ukraine.
While the production and trade of most critical raw materials has expanded rapidly over the last ten years, growth is not keeping pace with projected demand for the metals and minerals needed to transform the global economy from one dominated by fossil fuels to one led by renewable energy technologies.
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Ramaphosa proposes committee for logistics crisis of ‘catastrophic proportions’ (Engineering News)
During a meeting with key exporters on Wednesday night, President Cyril Ramaphosa proposed the establishment of a national logistics crisis committee to urgently address the ailing performance of South Africa’s ports and rail.
Ramaphosa hosted the virtual meeting with executives from key exporting economic sectors such as mining and minerals, the agricultural and forestry sectors and as well as the automotive and freight forwarding industry. The sectors represent South Africa’s largest exporters who are reliant on the country’s road, rail and port infrastructure.
Several meeting participants confirmed to News24 that the president said the logistics crisis is of “catastrophic proportions” and committed to rapid solutions through a new national logistics crisis committee. The committee structure is expected to be detailed at the fifth South Africa Investment Conference in Sandton next week.
Cameroon: The UK signals a boost in investment and trade and urges an end to conflict (GOV.UK)
The UK Minister for Development and Africa, Rt. Hon. Andrew Mitchell MP, has reaffirmed UK support to Cameroonian trade and infrastructure and discussed the devastating impacts of Cameroon’s conflicts, including the human rights situation, during a two-day visit.
The Minister saw the impacts of British investment in Cameroon, visiting a major road in the commercial capital, Douala, which is receiving £113 million in funding from UK Export Finance to support its expansion. Due to this important UK support, the critical transportation corridor between Douala and Yaounde, and on into central Africa, is being greatly improved, bringing more and quicker trade to more people.
The UK is committed to deepening its partnership with Cameroon to enhance economic prosperity, with leaders from the country invited to attend the UK-African Investment Summit to be held in London in April 2024.
Black citrus farmers held back by EU protectionism, Ramaphosa tells Belgian king (FreshPlaza)
South Africa’s citrus trade with the EU is currently held back by “protectionism”, President Cyril Ramaphosa told a recent bilateral trade forum between South Africa and Belgium, and with it, the aspirations of black citrus farmers whose forebears had been denied economic participation during apartheid.
“As we parcel out land to black people, they begin to get into sectors such as citrus. We have a growing number of black people who are now in citrus cultivation and production, and those people have seen opportunities to start trading with other countries, like Europe,” the South African president said.
Since last season South African oranges are required to be shipped at significantly lower temperatures than before, to assuage the risk of false codling moth entering Europe. South Africa contests both the scientific basis of the ruling as well as its trade fairness and prompted the country to lodge its very first trade dispute at the World Trade Organisation.
Pres Ramaphosa continued: “As they seek to export to your part of the world, there are barriers they have to deal with. Some of them [are] completely new barriers and that keeps them back as they seek to participate in the transformation of the South African economy.”
OP-ED: South African agribusiness must keep a close eye on export markets and opportunities in the rest of Africa (Daily Maverick)
While South Africa (SA) should expand its agricultural export markets to new frontiers such as India, China, Bangladesh, Saudi Arabia and South Korea, among others, this export drive should not be at the expense of our existing markets. We should actively engage with existing markets to promote further export growth of South African agricultural products. The engagement needs not only focus on the EU and Asia – both crucial regions for our export growth – but also on the rest of the African continent.
The African continent remains the largest export market for South Africa’s agriculture. In record agricultural exports of $12.8-billion in 2022, the continent accounted for 37%. Importantly, this was not an anomaly. It has accounted, on average, for 38% of SA’s agricultural exports by value per annum over the past five years.
The leading markets were Botswana, Namibia, Mozambique, Zimbabwe, Lesotho, Eswatini, Zambia, Angola, Nigeria and Mauritius. Except for Nigeria, these markets are within the Southern African Development Community’s (SADC) Free Trade Area, which has benefited South Africa greatly. Moreover, these markets’ infrastructure and proximity advantage contributes to the concentration of South African agricultural exports to this region.
As we advance this trade relationship with SADC and the rest of the African continent, various industry and government engagements will be needed to keep warm relations.
Cameroon, Gabon, Equatorial Guinea Traders Say Marburg Travel Restrictions Suffocate Trade (VOA)
Hundreds of merchants gathered Friday in Kye Ossi, a Cameroonian town on the border with Gabon and Equatorial Guinea, to protest travel restrictions imposed since an outbreak of the deadly Marburg virus. They say the restrictions are suffocating trade and violate a Central African regional agreement on the free movement of people and goods.
“Business people who leave Cameroon to meet their partners coming from Equatorial Guinea or from Gabon, they would definitely not come, so it affects the economic activities of Kye Ossi,” Cameroonian merchant Kema Godlove said Friday on Cameroon state broadcaster CRTV. “Actually, when borders are locked up, people relocate to different areas while waiting for the borders to be reopened, because when the borders are not open, businesses, everything is almost paralyzed.”
The merchants say by restricting the movement of people, Cameroon, Gabon and Equatorial Guinea are disrespecting a regional agreement among countries of the Central African Economic and Monetary Community, CEMAC.
Ghana: Stakeholders commit to strengthen collaboration to promote intra Africa trade (The Patriotic Vanguard)
Stakeholders from across the public and private sectors pledged to strengthen collaboration with Governments to address infrastructure deficit, ineffective trade facilitation processes, and invest in innovation and technology to promote trade across borders in Africa, to accelerate sustainable development.
This commitment was made at the maiden Africa Sustainable Supply Chain Summit hosted by the International Chamber of Commerce (ICC) in Ghana, in partnership with the United Nations Development Programme (UNDP), and the Africa Investment Group in Accra on 29-30 March 2023.
“Growing competitive African businesses for the One Africa market requires better supply chain governance and more investment by multiple actors including diaspora investors. It requires collaborative approaches to attract innovative and new forms of financing for MSMEs”, said Angela Lusigi, UNDP Resident Representative in Ghana.
Ms. Lusigi called for new partnerships to ensure that supply chains are sustainable and work to facilitate made in Africa, supplied by Africa, and moved by Africa.
Growth across Sub-Saharan Africa remains sluggish, dragged down by uncertainty in the global economy, the underperformance of the continent’s largest economies, high inflation, and a sharp deceleration of investment growth, a World Bank report said Wednesday. In the face of dampened growth prospects and rising debt levels, African governments must sharpen their focus on macroeconomic stability, domestic revenue mobilization, debt reduction, and productive investments to reduce extreme poverty and boost shared prosperity in the medium to long term.
Economic growth in Sub-Saharan Africa is set to slow from 3.6% in 2022 to 3.1% in 2023, according to the latest Africa’s Pulse, the World Bank’s April 2023 economic update for Sub-Saharan Africa. Economic activity in South Africa is set to weaken further in 2023 (0.5% annual growth) as the energy crisis deepens, while the growth recovery in Nigeria for 2023 (2.8%) is still fragile as oil production remains subdued. The real gross domestic product (GDP) growth of the Western and Central Africa subregion is estimated to decline to 3.4% in 2023 from 3.7% in 2022, while that of Eastern and Southern Africa declines to 3.0% in 2023 from 3.5% in 2022.
Boost for intra-African trade as Prudential Bank completes first live PAPSS transaction to Nigeria (Ghanaian Times)
Prudential Bank Limited (PBL), an indigenous financial institution, has successfully completed its first live Pan-African Payment and Settlement System (PAPSS) transaction to Nigeria. The transaction was initiated in Ghana Cedis on behalf of an individual customer of the bank, which was instantly received by the beneficiary in Nigeria in Naira.
The PAPSS platform serves as an enabler of the African Continental Free Trade Area (AfCFTA) by providing African businesses and individuals with the opportunity to initiate payments in their respective local currencies, with recipients also receiving funds in their local currencies. PAPSS eliminates the over-reliance on foreign currencies with its attendant economic woes.
African countries should innovate, not become dumping ground — AU Official (National Accord Newspaper)
Prof. Olalekan Akinbo of the African Union Development Agency (AUDA-NEPAD) says African countries should create room for innovation in order to avoid becoming a dumping ground for other countries’ innovations. Akinbo told the News Agency of Nigeria (NAN) on Wednesday that it was imperative for African governments to create the enabling policy and environment to support innovations. He urged governments in Africa to deploy innovation into agriculture and move from subsistence to commercial farming, so as to guarantee food sufficiency with surplus for exports.
OP-ED: Reducing cross-border trade costs will increase Africa’s competitiveness and revamp growth (Daily Maverick)
African economies are in danger of falling further behind their global competitors. Unless ways are found to radically improve trade between nations on the continent and with the world at large, they risk creating the foundations for a destabilising socioeconomic fabric and global crisis. While alarming, we have every reason to be hopeful about the economic prospects of African countries, but only if the right choices are made now.
As the continent prepares for a pending population boom and a rapidly changing global economy, governments and leaders must abandon the old “business-as-usual” approach and embrace different strategies that will yield desirable and prosperous outcomes.
Africa, especially under the auspices of the free trade area objectives, will require a well-defined trade strategy that is symbiotic and functions both domestically and regionally, and one that makes it competitive with its outputs.
The “Falling Long-Term Growth Prospects: Trends, Expectations, and Policies” report recently published by the World Bank offered thought-provoking discussions on the long-term potential output of global growth rates since the Covid-19 pandemic and the Russian invasion of Ukraine.
Growth Slows for Most MENA Economies Amid Double-Digit Food Inflation (World Bank)
Economies in the Middle East and North Africa (MENA) are expected to grow at a slower pace in 2023, as double-digit food inflation adds pressure on poorer households and the impact of food insecurity can span generations, according to the World Bank’s latest economic update.
Titled “Altered Destinies: The Long-Term Effects of Rising Prices and Food Insecurity in the Middle East and North Africa,” the report forecasts MENA’s GDP will slow to 3.0% in 2023, from 5.8% in 2022. Oil exporters, who benefited from a windfall in 2022, will experience slower growth, but a large gap remains between high-income countries and the rest of the region. Real GDP per capita growth, a better proxy for living standards, is expected to slow down to 1.6% in 2023 from 4.4% in 2022.
Projected financing needs to address severe food insecurity run into billions of dollars annually, but the report makes clear that money alone is not enough. The report suggests policy tools that could help to alleviate food insecurity before it escalates into a full-blown crisis, including targeted cash and in-kind transfers that could be introduced immediately to stem acute food insecurity.
Members take concrete steps towards WTO reform implementation at Goods Council (WTO)
Members took concrete steps towards WTO reform by agreeing on a series of actions to increase transparency and efficiency of the Council for Trade in Goods (CTG) and its subsidiary bodies and to improve the way it functions. At the meeting of the Council on 3-4 April, members translated intensive consultations over the past few months into specific results as a follow-up to the reform mandate agreed at the 12th Ministerial Conference (MC12) in June 2022.
Investment facilitation talks resolve remaining issues in Annex to Draft Agreement (WTO)
WTO members participating in the negotiations on investment facilitation for development (IFD) agreed to remove the Annex to the Draft Agreement containing pending issues after resolving all of these points. This major achievement towards the objective of finalizing the negotiation text by mid-2023 was announced at a plenary meeting on 5 April, following a two-day negotiating round. Participants also held a dedicated session on needs assessments, which aim at helping developing and least-developed countries (LDCs) self-assess their technical-assistance and capacity-building needs to implement the future IFD Agreement.
WTO members discuss bolstering developing countries’ participation in global trade (WTO)
Members discussed the Committee’s contribution to implementing the Ministerial Declaration adopted at the 12th Ministerial Conference (MC12) on the WTO response to the COVID-19 pandemic and preparedness for future pandemics.
Members discussed a proposal by the WTO’s African Group on providing developing countries and LDCs with flexibility to pursue policies that promote industrial and digital development and address emerging challenges, such as climate change. Examples include policies that protect infant industries and those that diversify production.
Members expressed their commitment to helping developing countries and LDCs integrate more fully into the global trading system. Some warned against duplicating work undertaken in other WTO forums.
Trade growth to slow to 1.7% in 2023 following 2.7% expansion in 2022 (WTO)
The WTO’s trade projections, set out in the new “Global Trade Outlook and Statistics” report, estimate real global GDP growth at market exchange rates of 2.4% for 2023. Projections for both trade and output growth are below the averages for the past 12 years of 2.6% and 2.7% respectively (see chart).
WTO Director-General Ngozi Okonjo-Iweala said: “Trade continues to be a force for resilience in the global economy, but it will remain under pressure from external factors in 2023.This makes it even more important for governments to avoid trade fragmentation and refrain from introducing obstacles to trade.
BRICS Investment Report (UNCTAD)
Brazil, the Russian Federation, India, China and South Africa (BRICS) now form one of the world’s most important economic blocs, representing more than one quarter of global GDP, and 42 per cent of the world’s population. Significantly, the BRICS have seen their economic influence increase over the past decades, as drivers of global growth, trade and investment.
Foreign investment has played an important role in the growth of BRICS economies since 2001, with annual FDI inflows to the bloc more than quadrupling from 2001 to 2021 and contributing significantly to gross fixed capital formation. The growth in FDI inflows to the BRICS was very strong in the first decade, but has remained relatively flat since 2011, against a global backdrop of negative growth of FDI flows over the decade.
To deal with the challenging global investment environment, and also in response to the need to leverage foreign investment for sustainable development, the BRICS economies continued moving in the general direction of a more open and supportive investment policy environment.
Air Cargo Shows Signs of Improvement in February (IATA)
The International Air Transport Association (IATA) released data for February 2023 global air cargo markets showing that air cargo demand rose above pre-pandemic levels.
The global new export orders component of the manufacturing PMI, a leading indicator of cargo demand, continued to increase in February. China’s PMI level surpassed the critical 50-mark indicating that demand for manufactured goods from the world’s largest export economy is growing.
Global goods trade decreased by 1.5% in January; this was a slower rate of decline than the previous month of -3.3%.
African airlines saw cargo volumes decrease by 3.4% in February 2023 compared to February 2022. This was an improvement in performance compared to the previous month (-9.5%). Notably, the Africa to Asia route area experienced significant cargo demand growth in February, up 39.5% year-on-year. Capacity was 4.7% above February 2022 levels.
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10% hike in SA trade exports, stats show (Bizcommunity)
South Africa recorded a trade surplus of R16.1bn in February 2023 compared to a deficit of R22.7bn in January 2023, and higher than the market forecast of a R14.3 bn shortfall.
This was the largest trade surplus over the last six months and came on the back of a 10.7% month-on-month increase in exports and a substantial decrease of 14.8% in imports. In line with expectations, the cumulative trade balance for the first two months of 2023 narrowed to a deficit of R6.6bn compared to a R17.1bn surplus over the same period in 2022.
South Africa once again recorded trade deficits with most of its regional trade partners, except Africa. With a substantial decline in imports from Africa for the period, the trade surplus with the continent rose to R30.5bn. This surplus is greatly beneficial to South Africa in that it increases the rand flow to the country, but also, the composition of the trade with the continent supports economic development in the country.
Other than oil and coal, most of the exports to Africa consist of higher value products, such as machinery, vehicles, and iron and steel. On the import side, products sourced from the continent are mostly lower value-added mining and mineral products such as oil, gold, and diamonds.
South African aeroplane company credits Brics with helping it win export orders (Engineering News)
South African light sports aircraft manufacturer Bat Hawk Aircraft has credited South Africa‘s membership of the Brics group as helping it win a major export order. Brics is the acronym for Brazil, Russia, India, China, and South Africa. The company is based in Nelspruit in Mpumalanga province.
“While our biggest aircraft importer in the continent is the Democratic Republic of Congo, followed by Botswana and Mozambique, we do export outside the continent as well,” explained Bat Hawk MD Terry Pappas. “We have footprints in the US and Australia. But our major breakthrough in the past five years has been with the Brics.”
Developing cybersecurity skills pipeline critical to fighting cybercrime (Engineering News)
Cybersecurity is one of the most significant risks facing South African companies and the government, as well as the world, with the World Economic Forum placing it among the top ten biggest threats faced by the world today.
However, the ability of the private and public sectors to respond adequately to the threat hinges on developing a cybersecurity skills pipeline, Council for Scientific and Industrial Research (CSIR) cybersecurity systems research group leader Billy Petzer said on April 4 at a cybersecurity media briefing in Pretoria.
An outlook of Tanzania’s Energy Demand, Supply and Cost by 2030 (AfDB)
The UN SDGs highlight the importance of energy indicators in achieving sustainable development. The supply side of energy in Tanzania has received a significant boost and there are optimistic targets to suggest further improvements in this area. However, past experiences have shown that the problems of financial constraints and the lack of technical capacities required could either delay or lead to the total abolishment of some projects. In the short- to medium-term, emphasising demand-side management (DSM) could prove crucial in ensuring a sustainable energy system in Tanzania but the evidence is sparse.
This study reviews the trends and underlying drivers of energy demand, supply, and cost in Tanzania. Total primary energy and electricity consumption exhibit a rising trend, and challenges on the supply side suggest energy deficit is a looming challenge in the future. Thus, without a significant boost in supply and probably DSM, unserved energy demand could worsen in the future. Key drivers include economic growth, price, electrification rate, population growth, industrialisation, changes in economic structure, and energy efficiency. Forecasted peak demand in the medium (2020-2025) and long term (2025-2030) would average annually 1274.74 MW and 1490.33 MW, respectively. Recent electricity tariffs in Tanzania are ranked among the highest in the sub-region, and the key drivers are own generation and transmission, and power purchase. The current tariff structure favours commercial consumers more than domestic consumers and this might impose significant affordability challenges on women who mostly do not operate in formal businesses. We discuss the implications of the findings.
Local manufacturers hail suspension of proposed excise duty hike (The Guardian Nigeria)
The inability of many Nigerians to access cash for daily activities is beginning to impact livelihoods and productivity in the real sector negatively, while pushing many businesses in the informal sector to the edge.
Factories are also experiencing a reduction in number of shifts and utilisation due to fewer workers and poor product sales at the retail end, while stakeholders in the informal sector have witnessed a decline in activities in the last few weeks.
CPPE chief executive officer, Dr. Muda Yusuf, noted that Nigerians continue to groan in the adversity inflicted by the acute cash shortage amid rejection of old currency notes by market operators, refusal by banks to accept old notes, silence by the Presidency on the Supreme Court judgment and absence of official pronouncement by CBN on the issue. He added that retail transactions across sectors have become nerve-wracking and distressing as payment system challenges persist. Yusuf, therefore, called on President Buhari to immediately intervene to put an end to the hardship caused by the currency redesign policy, adding that the cash scarcity has not only crippled economic activities in the country but has now become a major risk to the livelihoods of Nigerians.
The economy is gradually grinding to a halt because of the collapse of payment systems across all platforms. Digital platforms are performing sub-optimally because of congestion; physical cash is unavailable because the CBN has sucked away over 70 per cent of cash in the economy and the expected relief from the supreme court judgment has not materialised,” CPPE said.
President Ruto roots for carbon pricing to promote climate justice (Capital News)
President William Ruto has called for sustained efforts to enrich jurisprudence on environmental law in a bid to curtail further climate-related crises in Africa. Ruto who spoke on Monday while officially opening the 3rd Symposium on Greening Judiciaries in Africa challenged courts to widen their scope beyond human rights and constitutional affairs in a bid to secure climate justice.
“Greening our judiciaries will be inevitably multi-sectoral and inter-disciplinary. Beyond local and international human rights, constitutional, environmental, trade and economic law, our judiciaries must be exposed to diverse fields such as ecology, economics, agriculture, food systems, trade and finance, carbon markets, energy and infrastructure,” he told delegates at the conference.
Ruto termed pollution-dominated industrialization as unsustainable hence calling for concerted efforts to promote sustainable alternatives.
Meeting global EV targets will be ‘extremely challenging’ owing to raw material shortages (Engineering News)
Chemicals company BASF global precious metal services senior VP Timothy Ingle told delegates attending the Platinum Group Metals Day, in Johannesburg, earlier this week, that it would be extremely challenging from a raw materials perspective to meet the expected global uptake of ten-million electric vehicles (EVs) this year and the goal of reaching 40-million EVs on the road by 2030.
Ingle pointed to challenges faced globally with securing base metal supply and, in particular, lithium and class one nickel.
Concern over East Africa manufacturing slide (The Citizen)
Queries are being raised over the falling manufacturing value addition (MVA) in the East African Community (EAC) bloc. The trend fell short of the annual growth rate envisaged under the region’s industrialisation drive.
“We are not doing well in meeting the aspirations of the regional industrial policy targets,” said Mr Jean Baptiste Havugimana, the EAC director of productive sectors. According to him, MVA growth has slowed down in recent years. The growth rate fell from 5.3 percent between 2005 and 2010 to 4.6 percent between 2010 and 2021. The fall, he further said, was short of the 10 percent annual growth rate envisaged in the EAC Industrialisation Policy (2008-2032).
“This is nowhere near the double-digit growth envisioned,” Mr Havugimana told a meeting of the EAC sectoral council on trade, industry, finance and investment. He said that due to the slow pace of MVA growth, relative to Gross Domestic Product (GDP), the share of manufacturing in GDP has been contracting. Previously manufacturing contributed more than ten percent of the region’s GDP but has now dropped to less than eight percent.
“This is raising doubts about structural transformation through industrialisation,” Mr Havugimana said at the meeting held in Moshi.
Lesu and kanga to get new EAC textiles boost (The Independent Uganda)
The East African Community-EAC is now pushing for traditional wear and garments made from local materials in a bit to revive the region’s textile industry. A policy organ says if the lesu and kanga are encouraged as wear or inputs for clothes, it will go a long way in supporting cotton farmers, boosting industrialization, and saving foreign exchange. For close to ten years now, the East African Community has sought to jointly revive and grow the local textile industry but efforts are yet to bear fruit.
Now the Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) called on EAC the Partner States to adopt the use of traditional or folklore wear as official Government dresses for official events, as part of the “Buy East Africa, Build East Africa” strategy.
The council, at its just-ended 38th Extraordinary meeting, also encouraged the countries to establish digital platforms to support the exchange of information on the harvesting of cotton and trade of cotton lint in order to increase the intra-EAC trade on the products.
The ministers also proposed that textile and textile articles be moved to the maximum band (of goods protected by high tariffs on imports) to stimulate local production.
EAC members urged to remove bottlenecks obstructing industrial development (Capital Business)
Seven member states of the East African Community (EAC) have been urged to remove restrictions and bottlenecks that obstruct industrial development in the region. A statement by the EAC headquarters in Tanzania’s northern city of Arusha said the appeal was made during the 38th Extra Ordinary Meeting of the Sectoral Council on Trade, Industry, Finance and Investment dedicated to industrialization held in Tanzania.
According to the statement, the chairperson of the meeting, Burundian Minister of Finance, Budget and Economic Planning Audace Niyonzima, said industrialization, trade, finance, and investment are important pillars of integration, and their development will help to deepen integration as the region moves toward the next milestone of financial integration.
Niyonzima called on EAC member states not only to put in place clear industrial policies and strategies but also to implement them on the ground to support economic development and employment for EAC citizens.
The rapid rate of competition law developments across Africa (ZAWYA)
Baker McKenzie’s latest Africa Competition Report 2022 provides a detailed analysis and overview of recent developments in competition law enforcement and competition policy in 32 African jurisdictions and regional bodies. The Report outlines how, over the past two years, African competition regulators have actively engaged in efforts to address pandemic-related challenges, but there has also been a general upward trend in competition policy enforcement across the continent. This trend is highlighted by a number of significant recent developments in competition law regulation across the continent. Countries and regions with recent competition law developments include the Common Market for Eastern and Southern Africa (COMESA), Egypt, Ethiopia, Ghana, Kenya, Mauritius, Mozambique, Namibia, Nigeria and South Africa.
AfDB supports Africa fintech hub project with $525,000 grant (News Agency Nigeria)
The African Development Bank (AfDB), have signed a 525,000 dollar agreement to support Africa Fintech Network’s (AFN)’s Hub project. Mr Lamin Barrow, the Director-General, AfDB, Nigeria Country Department, during the signing in Abuja on Tuesday, said the project would boost the fintech industry on the continent.
This grant of 525,000 dollars, will support the operationalisation of an on-line digital hub to serve as a repository of knowledge for fintech entities across the continent, and globally. “ The Digital Hub, which is to be delivered through a strategic partnership between the Africa Fintech Network and Cenfri, will help to strengthen the fintech ecosystem across Africa, and boost the industry’s competitiveness.
The grant is funded by the Africa Digital Financial Inclusion Facility (ADFI).
As China opens up to African farms, long road still ahead for ‘green lanes’ (South China Morning Post)
A variety of raisins from South Africa are now reaching Chinese consumers, as doors open wider to African food products under President Xi Jinping’s “green lanes” promise.
“High quality fruit from Africa is gaining more and more recognition in the Chinese market,” Wu Peng, director general of the Chinese foreign ministry’s African affairs department, tweeted recently. This comes as China imports more farm produce from Africa, including avocados, cashews, sesame seeds and chilli peppers, as agriculture becomes the new focus of its engagement with the continent.
Can Russia Increase Trade With Africa Beyond Rhetoric (Business Post Nigeria)
Russian President Vladimir Putin spoke at the International Parliamentary Conference Russia – Africa in a Multipolar World held in Moscow under the auspices of the State Duma of the Russian Federal Assembly on March 20.
The partnership between Russia and African countries has gained additional momentum and is reaching a whole new level, he noted in his speech, and along the line, adding that additional opportunities are opening up by the process of establishing the African Continental Free Trade Area (AfCFTA), which began in 2021, which in the future will become a continental market which favours developing ties both through the Eurasian Economic Union and bilaterally.
“Mutual trade is growing every year, which reached almost $18 billion last year. It is unlikely that such a figure can fully suit us, but we know that this is far from the limit. The development of counter-commodity exchanges will undoubtedly be facilitated by a more energetic transition in financial settlements to national currencies and the establishment of new transport and logistics chains,” he added.
Trade tracker: EU trade deals (UK in a changing Europe)
The EU has signed two economic partnership agreements (EPAs), one with West Africa and the other with the East African Community (EAC). They have yet to come into force. Upon ratification, the deals will reflect one of the first major trade divergences between the EU and the UK from the EU side.
The West Africa EPA involves 16 West African states that did not previously have trade deals with the EU. For the EPA to be fully ratified, all 16 states must sign the deal and then adopt it in their respective legislatures.
More flexible rules of origin will allow products being exported from West African countries to have inputs from other countries and still be eligible for tariff-free trade with the EU, giving goods from West Africa more ability to utilise global supply chains.
In terms of sectors, West Africa’s exports to the EU consist mainly of oil and gas (58.7%) and food products (28.9%). West Africa’s imports from the EU consist of fuels (27%), food products (20.6%), machinery (23.2%), and chemicals and pharmaceutical products (10%).
The EAC EPA involves six countries, Burundi, Kenya, Rwanda, Tanzania, South Sudan, and Uganda. Kenya and Rwanda are the only countries to have signed the EPA so far, both signing it in 2016 and Kenya ratifying it in the same year. Kenya is the only country to have ratified it to date. Similar to the West Africa EPA, the EU has signed a stepping stone EPA with Kenya while they await full ratification from all six countries. The UK rolled over that deal with Kenya when it left the EU. This deal is not as far along as that of West Africa. While the deal is finalised, the process of ratification by each country’s legislative body is still in the works, therefore, its benefits will not be realised for some time.
The deal will help EAC exports of coffee, cut flowers, tea, tobacco, fish, and vegetables while it will help EU exports to West Africa, which are primarily dominated by machinery, vehicles, and pharmaceuticals.
WMO calls for more investment in integrated weather and climate services (UN News)
A recent publication contains guidelines and best examples of integrated weather and climate services from across the globe. It “provides well-timed support for this crucial decade of energy transition to net zero,” said WMO Secretary-General Petteri Taalas “By enabling WMO Members and their National Meteorological and Hydrological Services, as well as energy sector companies and practitioners, to deliver and use integrated weather and climate services, national strategies on clean and sustainable energy for all can be achieved in a timely and effective manner,” he added.
investment is critical, including to ensure that energy infrastructure is resilient to climate-related shocks, and to harness the power of energy generated from sources such as the sun and wind, the UN agency said.
Members briefed on informal dispute settlement reform talks (WTO)
Marco Molina, Deputy Permanent Representative of Guatemala to the WTO, reported in his personal capacity on informal meetings he was asked to convene by a group of WTO members on the issue of dispute settlement reform. The objective of these meetings was to have substance-based discussion to find practical solutions to the concerns identified by members, with the aim of fulfilling the June 2022 ministerial mandate of having a fully and well-functioning dispute settlement system accessible to all members by 2024.
Mr Molina said that between 6 and 14 February he had over 40 bilateral meetings with delegates and regional coordinators representing more than 130 WTO members, which was followed by an informal meeting on 17 February open to all WTO members. An online template was created for the submission of proposals, of which 70 have been received from members to date. Informal discussions were also started in small groups and open to all members for talks on the proposals put forward; so far 45 delegates have participated in the small group meetings.
Members welcome Timor-Leste’s request to join Information Technology Agreement (WTO)
Participants in the WTO’s Information Technology Agreement (ITA) welcomed at a meeting on 29 March a request by Timor-Leste to join the ITA and the ITA Expansion Agreement. Members also discussed ITA trade concerns and heard a WTO Secretariat report on latest trends in global trade in information and communication technology (ICT) products.
The Secretariat provided an update on latest trends in world trade in ITA products. The presentation noted that world exports of ITA products have more than quadrupled since 1996, reaching USD 2.5 trillion in 2021. The export of products under the ITA’s Expansion Agreement is estimated at about USD 2.1 trillion of exports in 2021, accounting for around 12 per cent of world merchandise exports. The Secretariat noted that products covered under the ITA and its expansion are among the most traded product groups in the world.
The report also noted that the ITA contributes to the reduction of import prices of IT products. These prices were around 70 per cent lower in 2021 than when the ITA entered into force in 1996. Asia’s leading role in the production and integration of ITA products was also noted, with Viet Nam becoming the world’s seventh-largest ITA product exporter.
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TFR achieves record volumes on manganese export line (Engineering News)
Transnet Freight Rail’s (TFR’s) Cape Corridor has achieved a ten-year record on its Manganese Hotazel–Port Elizabeth export line, achieving 9.8-million tonnes in the 2022/23 financial year. The entity has more than doubled the corridor’s total capacity, increasing progressively from 4.9-million tonnes in 2012 to 9.7-million tonnes in 2023, it says.
The investment in the capacity expansion enabled TFR to gradually increase its manganese volumes performance through capital expenditure projects; an increase in slot capacity; investments in rolling stock capacity; and an increase in the number of employees.
Bill seeks refunds, repairs for defective goods (Business Daily)
Kenyan consumers will have the right to reject goods and obtain refunds, or compel manufacturers to repair or replace faulty and poor-quality products if Parliament approves changes to the law aimed at protecting buyers from substandard products.
The proposed law seeks to empower consumers to return goods within a week of delivery if they are defective, unsafe, not of merchantable quality, or were not examined by the suppliers before delivery. The Bill further seeks to shift the burden of proof to a supplier of goods.
West Africa Crude Oil Exports Dropped Again in 2022 (Hellenic Shipping News)
West Africa crude oil exports kept falling during 2022, continuing the downward trend of the past few years. In its latest weekly report, shipbroker Banchero Costa said that “2022 turned out to be a very positive year for crude oil trade, despite the surging oil prices and risks of economic recession. In the full 12 months of 2022, global crude oil loadings went up +8.7% yo-y to 2,050.1 mln tonnes, excluding all cabotage trade, according to vessels tracking data from Refinitiv. This was well above the 1,886.3 mln tonnes in Jan-Dec 2021, but slightly below the 2,110.5 mln tonnes in the same period of 2019”.
“West Africa as a region is the third largest exporter of crude oil in the world, after the Arabian Gulf and Russia. It accounts for 8.3% of global seaborne crude oil exports. Total crude oil loadings from West Africa in the 12 months of 2022 declined by -2.2% y-o-y to 170.7 million tonnes, according to revised vessels tracking data from Refinitiv. This extends a negative trend now seen for a number of years. In 2021, exports from West Africa declined by a sharp -14.0% y-o-y to 174.6 mln tonnes. In 2020, volumes had also declined by -9.2% y-o-y to 202.9 mln tonnes, from the recent peak of 223.4 mln tonnes in 2019. In terms of individual countries, the biggest exporters in the region are Nigeria and Angola. Nigeria exported 65.5 mln t in 2022, down -9.2% y-o-y. Volumes from Nigeria have been dramatically declining in recent years from the 72.2 mln t in 2021, the 86.7 mln t in 2020 and the 97.9 mln t in 2019. Angola exported 58.4 mln t in 2022, up +5.6% y-o-y from 55.3 mln tin 2021. Volumes however were still well below the 61.6 mln t in 2020 and the 67.1 mln t in 2019”, Banchero Costa said.
How new Rwanda-Australia trade, investment body will boost ties (The New Times)
The Australia-Rwanda Trade and Investment Council (ARTIC), a new body formed during the Australian leadership retreat in Brisbane from March 24 to 25, aims to strengthen relations between Australia and Rwanda by building mutually beneficial links in business, education, and culture. The council which is composed of business and community leaders, plans to use Rwanda as a conduit to broader opportunities throughout Africa.
The Australia-Rwanda Trade and Investment Council will continue to foster mutual opportunities in business, education, and culture, and provide learning opportunities to address the current challenges facing the world.
Climate-Smart Agriculture Key for Nigeria’s Resilient Economy — AfDB (Tribune Online)
The African Development Bank (AfDB) has said that Nigeria can build a climate-resilient economy by adopting climate-smart agricultural practices and low-cost but effective technologies.
The technologies include water harvesting and small-scale irrigation techniques, land and water conservation and management strategies, and minimum or zero tillage agriculture with high net returns to farmers.
This is contained in the Bank’s “Country Focus Report 2022 Nigeria: Supporting climate resilience and a just energy transition “, a copy of which was obtained by the Nigerian Tribune in Abuja.
According to the report, “The African Economic Outlook 2022 estimates of the Climate Resilience Index (CRI) show that in 2010–2019, Africa was the least climate-resilient region in the world, with both the lowest median (28.6) and mean (34.6) CRI scores, well behind Europe and Central Asia, the regions most resilient to climate shocks.
“During the same period, Nigeria was moderately resilient as compared to other African countries, with a CRI score of 26.8. Although Nigeria suffers from multiple climate change effects, manifested through rising temperatures and periodic droughts and flooding, with implications for agricultural productivity, food security and electricity generation, the country has made some progress in reducing its vulnerability.
Ghana, Kenya takes advantage of AfCFTA to boost trade (Graphic)
Ghana has declared intentions to maximise gains from the African Continental Free Trade Agreement (AfCFTA) through strengthening of commercial ties with Kenya. As a result, it is planning to establish an Export Trade House (ETH) next month in Kenya as part of measures to promote trade relations between the two countries. It will be positioned at a central location where Made-in-Ghana products can be shipped, displayed and distributed in Kenya and other countries in East Africa.
The EU-WCO RoO Africa Programme supports SADC in updating its Rules of Origin to HS 2022 (WCO)
The World Customs Organization (WCO), under EU-WCO Origin Africa Programme funded by the European Union (EU), and in partnership with the Southern African Development Community (SADC), conducted a validation workshop on the alignment of the SADC Rules of Origin to the 2022 edition of the Harmonized System (HS).
The workshop, which took place from 20 to 23 March 2023, in Johannesburg, South Africa, follows a request by SADC to align its rules of origin. The EU-WCO RoO Africa Programme has provided two preceding technical assistance workshops to update the SADC rules of Origin from the 2002 to the 2022 version of the HS. This process is considered a significant and important step towards the implementation of the SADC Protocol on Trade.
In his opening remarks, Mr. Alcides Monteiro, Senior Programme Officer, Customs, and Task Manager of the EU-SADC Trade Facilitation Programme at the SADC Secretariat, highlighted the importance of the SADC Protocol on Trade and informed that the non-alignment of SADC list of rules to the latest HS version has caused implementation problems for economic operators and customs authorities. Goods had to be classified twice for purposes of customs clearance, collection of import duties, and origin determination. The technical support from the WCO through the EU-WCO Rules of Origin Africa Programme was of high relevance and required to align the rules of origin to the HS 2022 edition.
Southern African Customs Union holds first trade facilitation, logistics engagement in Namibia (New Ghana)
The Southern African Customs Union (SACU) on Thursday held its first engagement with government agencies and private sector representatives in Namibia as part of a series of activities aimed to promote trade facilitation and logistics across the region.
The event was organized by the Namibia Revenue Agency (NamRA), with a particular focus on the implementation of the Authorized Economic Operator (AEO) Program.
Speaking at the event in Windhoek, the capital of Namibia, SACU Executive Secretary Thabo Khasipe explained that the AEO program aims to provide private sector companies with benefits such as faster goods clearance, supply chain optimization, lower costs of cross-border trade, prioritized treatment at the border, and mutual recognition arrangements.
“Trade facilitation and logistics have been prioritized as a key component of our strategic plan, with a focus on industrialization as the overarching objective,” Khasipe said, adding that the AEO Program has two components: compliance and safety and security where the SACU has been implementing the compliance component in phases, with the initial phase focused on developing the tools and frameworks required for an AEO Compliance Program.
He stated that as of March 23, all SACU member states have established and are implementing their respective AEO Compliance Programs using the minimum standards and criteria and procedure manuals developed at the regional level. The AEO program will be implemented across the SACU region.
E-waste rise in EA worries tech providers, linked to public health issues (The East African)
Tech stakeholders and authorities in the region are worried that rising e-waste could bring the unintended health problems to people as items are disposed of in local dumping sites.
At a regional workshop on sustainable management for e-waste, stakeholders in the information communication and technology (ICT) sector heard that there are insufficient facilities to ensure safe disposal of obsolete electronic gadgets, making them a serious environmental concern.
“There are a few e-waste collectors or companies engaged in collecting the used components in local communities in EAC member states with Tanzania and Kenya taking the lead,” said East African Communication Organisation (EACO) Chairperson Juma Osoro, an autonomous entity of the regional bloc that brings together national ICT regulators, operators and services providers.
DR Congo ripe for business, say East African captains of industry (The East African)
Business leaders from East Africa say that the Democratic Republic of Congo is ripe for business following commitments by Kinshasa that it is reviewing regulations to ease doing business in the country.
Executives who spoke at the inaugural Nation Media Group East African Business Conference and Trade Fair in Kinshasa at the end of the week expressed optimism with the reforms that the Felix Tshisekedi administration has instituted to facilitate investment in the country that has suffered decades of political uncertainty.
In his keynote address at the event, Congolese Government Spokesman Patrick Muyaya assured investors of the changing investment climate in the country, noting that the time had come for Congo to be defined by other issues than violence.
WHO warns global economy to slump if SSA doesn’t cut trade costs (The East African)
Sub-Saharan Africa (SSA) will need to cut trade costs by at least half to reinvigorate global trade which has been in decline since mid-last year, the World Bank has warned.
The lender said world economy growth rate is set to slump to a three-decade low if nothing is done urgently to boost productivity, labour supply, ramp up investment and trade, and harness the services sector.
In a report assessing the long-term implications of the Covid-19 pandemic and Russian invasion of Ukraine on the global economic growth rate, the World Bank said cutting trade costs in regions where they are highest could boost international trade and bolster the globe’s economic growth.
The Sectoral Council noted the focus of the next five years Implementation Action Plan of the Strategy as strengthening the competitiveness of priority regional value chains to boost intra-EAC trade and Leveraging the African Continental Free Trade Area (AfCFTA) and Global Value Chains (GVCs) for export growth and rapid Industrial Sector Transformation; utilization of local sourcing/procurement; supporting the private sector and SMEs resilience for accelerated growth and recovery.
The 38th Extra Ordinary Meeting of the Sectoral Council on Trade, Industry, Finance and Investment (Ex-SCTIFI) dedicated to Industrialization concluded over the weekend in Kilimanjaro, United Republic of Tanzania. The five-day meeting from 28th March to 1st April, 2023 considered the progress of the reports of the implementation of the directives in the sector, Cotton, Textiles and Apparel (CTA) Strategy; Leather & Leather Products Strategy and Automotive Industry Action Plan.
Furthermore, shifting to Green Industrialization Pathways and anchoring sustainability to achieve SDGs and green growth; Improving Policy Coordination and Building Capacity for Industrial Policy Management; Optimizing Infrastructure & Logistics Networks for Spatial Industrial growth and Agglomeration; and Strengthening collaboration in R&D, Technology Tranfer and adotion of Fourth Industrial Revolution (4IR) technologies among others.
African Free Trade Area can herald $12 billion growth for the continent’s automotive industry (WEF)
Transformative change is underway in the African automotive industry as trade begins under the African Continental Free Trade Area (AfCFTA).
The continent’s auto industry, valued at $30.44 billion in 2021, is expected to grow to $42.06 billion by 2027 — a nearly 40% increase in value. According to a new report by the World Economic Forum, AfCFTA: A New Era for Global Business and Investment in Africa, much of this growth can be serviced by local companies within the newly established free trade area.
International companies have found success in the automotive industry by partnering with African countries, signaling that the automotive sector is ripe for new and increased investment strengthened by the AfCFTA.
Across the continent, there is an average annual demand for 2.4 million motor cars and 300,000 commercial vehicles. This domestic demand — which is rising due to the continent-wide increase in disposable income, strong growth of the middle class and rapid urbanisation — is currently being met primarily by imported used vehicles.
The Women and Youth Financial & Economic Inclusion Initiative, a catalyst for inclusive development (AU)
Africa’s vision for its people is that of a continent where girls and boys reach their full potential and men and women contribute equally to the development of their societies. Aspiration 6 of Agenda 2063 envisions an Africa whose development is people-driven, especially relying on the potential of its women and youth. Promoting gender and youth mainstreaming on the continent is essential for an inclusive Africa where the voices and concerns of 75% of the population that constitutes of women and youth, are heard and welcomed at decision-making tables.
However, for decades, African women and youth have been trapped in cycles of poverty due to several underlying factors including unequal access to education, factors of production, restricted market access; underpaid or unpaid labour; harmful cultural practices; violence against women and girls and limited legal protection from gender inequality practices entrenched in the society amongst others.
Trade levels still low despite deepening Intra-ECOWAS trade (The Voice)
As the meeting of experts and industry Ministers from ECOWAS member States for the validation of Regional Standards, Technical Regulations for lead in paint ECOSHAM wrapped up on Thursday, 30th March 2023 in Banjul, the Gambia Hon Minister of Trade, Industry, Regional Integration, and Employment has disclosed that despite the major strides made toward deepening Intra-ECOWAS trade, trade levels are still very low.
Hon Baboucarr Ousmaila Joof, delivering his opening statement at the forum said the reasons for this are multifaceted but have their root cause in the energy sector, and “they range from inadequate infrastructure, low levels of industrialization and productive capacity, poor implementation record of protocols and existing agreements, high cost of doing business, lack of access to trade and market information, high levels of informal trade – particularly, informal cross-border trade, among others.”
He noted that the technical meeting of experts thoroughly examined and validated several documents for the development of standards for off-grid solar products and PV mini-grid and revision of ECOSHAM document as well as regional harmonization of Standards on THC 01 Agro-products, THC 02 Food Products, THC O3 Chemical Products and THC 09 Informational, Communication Technology.
FAO, ECOWAS, EU partner to boost fishery production (The Nation)
The Food and Agriculture Organisation of the United Nations (FAO), Economic of West African States (ECOWAS) and the European Union have collaborated to boost fishery production. This was made known during a meeting with experts to discuss and draw a road map for the utilisation of the results to adopt a sustainable management of the fisheries resources of the ECOWAS maritime domain.
FAO Representative in Nigeria and ECOWAS, Fred Kafeero, who was represented by the Head of FAO Nigeria, Northeast Office, Mr Al Hassan Cisse, said the state of fisheries in the ECOWAS region is complex and varies depending on the country and the sub-region. He noted that fish which a source of income for millions of people faces enormous pressure and threats of overexploitation; illegal, unreported and unregulated (IUU) fishing; poor management practices that cripples the progress towards sustainable fisheries; especially the Small-scale fisheries sector, the back-bone of fishing communities.
Member states urged to institute debt management strategies to boost economic growth (UNECA)
African countries should institute effective debt management strategies to boost economic growth and avoid falling into the debt trap, the Economic Commission for Africa (ECA) Director for Macroeconomics and Governance Division, Adam Elhiraika, has urged.
Opening a peer learning workshop on debt management strategies for member states being held in Lusaka, Zambia from April 3- 6 2023, Mr. Elhiraika said debt management was a challenge for African countries as debt becomes a significant source of funding for their economic growth and development.
“However, this provides an opportunity to effectively enact budgetary protection for various events more apparent in the foreseeable future,” Mr. Elhiraika said, adding that, “Efficient and effective debt management will allow debtor countries to take action to avoid the legacy of ‘too little, too late’ sovereign debt management and restructuring.”
Mr. Elhiraika said in the past six decades, every global recession has led to a rise in global government debt and over the past decade, many countries in Africa have increased their public debt levels. Most of the current public debt was accrued during the fiscal years of 2020 and 2021, when countries took on debt to deal with the effects of the Covid-19 pandemic.
Regulatory reforms will help attract private sector investment in Africa’s energy market (UNECA)
A timely regulatory overhaul of Africa’s fledgling electricity sector will attract private sector investment and ensure energy security on the continent, stakeholders meeting at an electricity dialogue, have agreed.
More than 600 million Africans have no access to electricity and Africa generates only 4% of the global energy. Despite vast opportunities in the development of the electricity sector in Africa, there is low private sector investment in energy infrastructure and service delivery, participants at the recent High-Level Public-Private Dialogue on Private Sector Investment in Electricity and Infrastructure Development in Africa, heard.
“Advancing electricity market regulatory improvement and reform is a significant part of the solution towards de-risking investment in Africa’s energy infrastructure,” Mr. Hailu, an energy policy expert at ECA Private Sector Development and Finance Division, said, emphasizing that credible regulatory framework and policy remained key instruments for member countries striving to crowd-in private capital in their electricity markets via generation, transmission, distribution, and off-grid system development.
Unity eludes Southern Africa over Russia’s war (GIS Reports)
It has been almost 14 months since Russia launched its full-scale invasion of Ukraine on February 24, 2022. Kremlin expectations of a quick victory in its “special military operation’’ proved wrong, yet the world is no closer to finding a way to end this conflict and persuading Russian President Vladimir Putin to withdraw his troops. Unfortunately, Southern African states with 380 million of the continent’s 1.4 billion people are among those that consider themselves powerless to stop the bloodshed. They cannot even unify around a single position.
The war has created divisions in the Southern African Development Community (SADC), a trade and economic union of 16 countries. The initial position adopted by SADC member states has been nonalignment, with some countries mildly condemning Russia while calling for an end to the conflict through negotiations between Moscow and Kyiv.
IATA launches new Africa-focused initiative (Engineering News)
The global representative body for the airline industry, the International Air Transport Association (IATA), on Monday afternoon launched its Focus Africa initiative, to help the continent’s commercial aviation industry achieve its potential. Currently, Africa is home to 18% of the world’s population, but African airlines account for only 2.1% of global air passengers. Further, during this century, Africa will lead the world in terms of growth in working age populations. By 2100, Africa‘s working age population is projected (by the United Nations) to reach just over 2.5-billion, which will not be far behind that of Asia.
Africa Travel Market optimistic over new growth prospects (Africanews)
Africa’s travel market is open and booming. This is a sentiment expressed by an estimated 600 exhibitors at this year’s World Travel Market Africa in Cape Town, South Africa. This after the industry sustained serious damage due to Covid-19. The meeting saw a 35% increase compared to last year, said Carol Weaving, Director of Reed Exhibition Africa.
Africa’s travel market is open and booming. This is a sentiment expressed by an estimated 600 exhibitors at this year’s World Travel Market Africa in Cape Town, South Africa. This after the industry sustained serious damage due to Covid-19.
One of the hot topics on Africa’s growth is intra-Africa trade. For travel and tourism, destinations like Seychelles believes that it will act a catalyst to wider growth for expanding the country’s popularity.
Egypt, Afreximbank discuss preparations for IATF in November (ZAWYA)
Egypt’s Minister of Trade and Industry Ahmed Samir has held an extensive meeting with a delegation from the African Export-Import Bank, headed by Executive Vice-President Kanayo Awani, to discuss the bank’s current and future projects and initiatives in the Egyptian market.
The minister said that coordination is currently underway with the bank to host Cairo for the third edition of Intra-African Trade Fair (IATF) 2023 next November, added that the ministry is keen to provide all possible support to come up with this important event in a manner that befits Egypt’s position in the heart of the African continent.
Samir explained that the exhibition aims to enhance intra-trade between various African countries and highlight investment opportunities available in the continent.
Ditching the Dollar: Will a new BRICS currency replace the US dollar for trade? (Firstpost)
The US dollar has been the official currency for international trade for years now. However, in recent times there has been talk of creating a new currency in an attempt to dump the dollar and push back against American hegemony.
This de-dollarisation has received a boost in recent times, especially after the Russia-Ukraine war began last February. And last week, this movement received further impetus when Alexander Babakov, the deputy chairman of the State Duma, was quoted as saying that the BRICS nations are in the process of creating a new medium for payments — established on a strategy that “does not defend the dollar or euro”.
Taking this forward, the BRICS collective — made up of Brazil, Russia, India, China and South Africa — are also mulling creating a new currency to facilitate trade. It is reported that the new financial agreement could be seen as soon as in August when the countries meet for their annual summit in South Africa.
If the BRICS nations do go ahead with their plan and come up with a new currency, it could help stabilise their economies. For an investor in BRICS countries, it would mean increased consumer confidence. This would lead to an uptick in spending and economic growth.
Trade capacity-building activities launched in Tanzania under Chairs Programme (WTO)
The Eastern and Southern Africa Management Institute (ESAMI) is a pan-African management development institute owned by ten member governments. The Chair in Tanzania will seek to help the East African Community overcome impediments to trade growth and development.
This year’s activities at the Training Centre will focus on issues of relevance to least-developed countries in Africa, including utilization of trade preference and their impact on the development of regional value chains; e-commerce; and trade remedies.
“As a continent, we appreciate the value of using evidence-based research in synthesising strategies and policies to mitigate the unique challenges that our region and countries face,” Tanzania’s Deputy Minister for Investment, Industry and Trade, Mr Exaud Silaoneka Kigahe
UNCTAD set to support countries under new landmark treaty on high seas (UNCTAD)
After 15 years of negotiations, UN member states agreed on landmark new treaty on 4 March to protect marine biodiversity on the high seas. The treaty will be formally adopted soon.
When it enters into force, the Biodiversity Beyond National Jurisdiction (BBNJ) agreement will address biodiversity loss and ecosystems degradation due to climate change impacts, pollution and unsustainable use. It must be ratified by 60 member states to enter into force.
The treaty will particularly benefit developing countries, which had initiated the negotiations to regulate, among other things, the fair and equitable sharing of benefits arising from activities with respect to marine genetic resources. These have a significant potential for research and development in the biotechnological, pharmaceutical, foods and cosmetic fields.
DDG Zhang: Women’s perspectives are crucial to achieve sustainable peace through trade (WTO)
Taking account of women’s perspectives is crucial not only to raise awareness of the challenges they face in terms of gender equality but also to achieve sustainable peace through trade in fragile and conflict-affected states (FCAs), said Deputy Director-General Xiangchen Zhang on 31 March. Delivering opening remarks at a webinar titled “A trade for peace perspective on women’s empowerment in FCAs”, DDG Zhang stressed that the WTO’s Trade for Peace Programme can offer a platform to discuss concrete actions in support of women entrepreneurs and businesses in these countries.
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Coming Soon: Online Platform for Trade in Services (COMESA)
COMESA will soon launch an Online Platform for Trade in Services that will be used to facilitate speedy and efficient negotiations and provide digital communication, thanks to the African Export Import Bank (Afreximbank) which has helped develop the platform.
Since Wednesday this week, officials from the 21 COMESA Member States, who deal with trade in services matters have been attending a training in Lusaka, Zambia (and online), on how to use the platform.
The forum also presented an opportunity to validate two studies that have been conducted to assess the status of trade in business services and construction services in the region, to facilitate negotiations in those two sub-sectors. Also participating in the training were COMESA Secretariat staff that handle trade matters and information, communication technology.
Harsh cold treatments remain a threat to citrus sector: Absa Agribusiness (Moneyweb)
In its report tracking trends in South Africa’s agricultural sector, Absa Agribusiness has raised concern that the sector increasingly runs the risk of losing access to lucrative export markets, boding badly for the citrus industry’s R30 billion export revenue.
“Over the last year, we’ve seen markets being affected by increased protocols, hampering oranges and export revenue … we have similar concerns about citrus black spot (disease),” Marlene Louw, senior agricultural economist at Absa said.
She added that with fertiliser and chemical costs having risen significantly over the past year, farmers’ spraying programmes may be compromised, increasing the likelihood of a higher prevalence of citrus black spot, which will affect long-term access to the European market.
The industry suffered a blow last year, when the EU’s Standing Committee on Plants, Animals, Food and Feed voted in a new requirement which forces southern African countries, including South Africa, to implement extreme cold treatment to tackle false codling moth (FCM).
If EU authorities continue to enforce the cold-treatment laws, South Africa’s citrus industry looks to incur hundreds of millions of rand in additional costs.
Nigeria Loses $1bn Annually to Non-certification of Agri-produce for Export (THISDAY)
Nigeria has failed to benefit from multibillion-dollar agricultural items exported from West Africa due to non-certification of its farm produce such as yam, mangoes, shrimps, garlic, ginger and others.
Industry stakeholder and Director, Operations, Cargolux Airlines, Kingsley Nwokoma, told THISDAY that because Nigeria does not have the certifications for farm produce it is losing huge revenue in foreign exchange projected to be over $1 billion per annum.
“Most of the superstores in Europe have started selling most African farm produce and before they will buy your produce the must make sure you meet their safety conditions. We have what they call traceability. They follow you to your farm and make sure you abide by the stringent conditions to ensure that what you produce meet their health standard. This is because if anyone comes to their stores and buys those produce and get killed they will be sued and they pay huge compensations. So the food is traced to the farms. The superstores know the fertilizer you must use and they will follow you up to harvest. Unfortunately, we lack this process,” Nwokoma who is also the President of the Association of Foreign Airlines and Representatives in Nigeria (AFRAN), said.
Nigeria: Pantami inaugurates Digital Economy Community of Practice (Daily Post Nigeria)
Minister of Communication, Isa Ali Pantami on Thursday inaugurated a Digital Economy Community of Practice, DECoP.
The inauguration was done in conjunction with the Policy Innovation Centre (PIC) of the Nigerian Economic Summit Group (NESG) in Abuja.
Speaking at the event, the minister said that the digital economy centre has been doing well building and consolidating Nigeria’s economy.
He also used the opportunity to point out that the rejection of the 5% excise duty was necessary to avoid jeopardising the growth and development the sector has recorded.
Uganda: Govt turns to commercial representatives to boost trade (Monitor)
Trade representatives nominated by government in different parts of the world must get involved in gathering market intelligence to support exporters, Uganda National Bureau of Standards has said.
Speaking during the Trade Representatives’ Forum in Kampala yesterday, Mr David Livingstone Ebiru, the Uganda National Bureau of Standards (UNBS) executive director, said for a long time Ugandan exporters have been trading blindly without having in-depth knowledge of markets they trade in, which makes many of them fail to meet standards and specifications of consumers.
Therefore, he said: “Going forward our trade representatives must be able to participate in doing market research, so that they give us information”, especially in the area of standards and other requirements for Ugandans to trade comfortably.
Morocco among attractive countries for diversification of value chains, WTO DG (Hespress English)
Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, said Wednesday that she considers Morocco among the attractive countries for the diversification of value chains.
Speaking at the Annual Conference on Economic Policy of the National Association for Business Economists, she recommended the use of diversified supply chains, instead of focusing on the relocation of industries.
“World Trade Organization members should diversify their supply chains to business-friendly developing countries that have not fully enjoyed the benefits of global trade,” she stressed, noting that this would help improve global public perception of trade and reduce the need for countries to use subsidies to encourage relocation.
The geographic location of Mozambique is attractive for international movement of people and goods but exerts pressure on all entities operating at borders. This therefore calls for effective and efficient coordination between public bodies and the private sector at the borders to improve fiscal control, public security, as well as facilitating trade and migratory transit.
This was said by Mr. Fernando Alage, Deputy Director General of Customs, Mozambique Revenue Authority, when he opened a workshop on the country’s Coordinated Border Management (CBM) National Strategy held in Maputo from 27th March to 30th March 2023. The workshop was aimed to enhance coordination and cooperation among Government ministries, departments and agencies, as well as representatives of private sector organisations that have a role in facilitating cross-border trade and the clearance of travelers.
At the end of the workshop, the Southern African Development Community (SADC) Secretariat handed over the CBM National Strategy document to Mozambique, which became the first SADC Member State to develop the strategy which is supported by the European Union (EU)-funded Trade Facilitation Programme (TFP) and is implemented by the Secretariat. The TFP seeks to ensure that trade flows within SADC Region and with the outside world are increased along the North-South Corridor NSC, supports the implementation of the World Trade Organisation Trade Facilitation Agreement and the SADC CBM Guidelines on selected border posts along the corridor.
US promises more support for Tanzania’s development (The Citizen)
Dar es Salaam. Impressed by widening democratic space in Tanzania, the US yesterday pledged to support long-term economic development in the country.
US Vice President Kamala Harris said in Dar es Salaam that Washington was looking forward to fostering bilateral relations with Tanzania in key areas such as economic growth, good governance and democracy, mitigation of the impact of climate change, as well as regional and global integration.
In support of bilateral engagement between the two countries, the US intends to provide $560 million (sh1.3 trillion) in assistance in the 2023/24 financial year.
Free movement deemed essential to trade (China Daily)
African countries have been called upon to promote the free movement of people across their borders to boost intra-African trade, especially at this critical moment in the implementation of the Africa Continental Free Trade Area.
While concluding a two-day review of a report by the African Union Commission on Wednesday in Kenya's capital Nairobi, experts asked African countries to ratify the Free Movement of Persons Protocol adopted by AU member states in 2018.
While giving his comments on the AU's Policy Report, titled "The Free Movement of Persons for Trade: Towards an Accelerated Ratification of the AU Free Movement of Persons Protocol in Support of the implementation of the AfCFTA", Stephen Karingi, a director at the UN Economic Commission for Africa, said the slow ratification of the protocol can be attributed to a lack of appreciation of the benefits of free movement of persons, lack of awareness of the protocol and lack of political will.
Africa striving for local currency usage in continental trade (China.org)
The African Continental Free Trade Area (AfCFTA) is striving for the usage of local currencies in trade among countries in the continent, an official said Thursday.
Cross-border trading among countries in the Economic Community of West African States is already happening through the use of local currencies instead of the use of U.S. dollars, said Wamkele Mene, secretary general of the AfCFTA Secretariat, on the sidelines of a trade forum in the Kenyan capital of Nairobi.
"We now want to expand to other regional blocs including the East African Community which is in talks with the African Export-Import Bank," Mene said.
Russia – South Africa Bilateral Trade Up 16.4% In 2022 (Russia Briefing)
Bilateral trade between Russia and South Africa, both BRICS nations, was up 16.4% in 2022 compared to the previous year and reached US$ 1.3 billion, Russian Natural Resources Minister Alexander Kozlov said during a meeting of the Russia-South Africa Intergovernmental Commission.
The potential for cooperation between the countries is much greater and there are underlying conditions for boosting trade volumes, Kozlov said.
“Undoubtedly, the unprecedented sanctions against Russia have a negative impact on opportunities for trade growth. Under these conditions, it is necessary to come up with new forms of cooperation in the financial sector. I expect that in the very near future we will be able to carry out practical work in this direction and build an effective system of settlements,” the minister said. The BRICS has been working on developing a BRICS currency trade basket made up of their own currencies.
India unveils 'dynamic' foreign trade policy, eyes USD 2 trillion exports by 2030 (VarthaBharati)
New Delhi (PTI): India on Friday came out with a 'dynamic and responsive' foreign trade policy with the objective of raising the country's outward shipments to USD 2 trillion by 2030, making Indian Rupee a global currency and incentivising e-commerce exports.
The approach of Foreign Trade Policy (FTP) 2023 is to move from 'incentive to remission' based regime; encourage collaboration between exporters, states, districts and Indian Missions; reduce transaction cost; and develop more export hubs.
India is likely to cross USD 765 billion merchandise and services exports in financial year 2022-23 which ends on Friday. The total exports were USD 676 billion in previous fiscal year.
Unlike the practice of 5-year FTPs, this time the government has come out with a dynamic and responsive trade policy without any end date, and will be updated as per the emerging global scenario.
Public Forum 2023 to examine how trade can contribute to a greener, more sustainable future (World Trade Organization)
The WTO’s annual Public Forum, to be held from 12 to 15 September 2023, will focus this year on how trade can contribute to a greener, more sustainable future. The Forum will examine in particular how the services sector, digitalisation and inclusive trade policies can support global environmental goals and help combat the climate crisis.
Titled “It is Time for Action”, the Public Forum will cover three main topics: “The role of the services sector in sustainable trade,” “Inclusive policies for the advancement of green trade,” and “Digitalisation as a tool for the greening of supply chains.”
Sessions at the Public Forum are organised by representatives from civil society, academia, business, government and international organisations. A call for proposals and registration are due to open in early May 2023.
UK strikes biggest trade deal since Brexit to join major free trade bloc in Indo-Pacific (Gov.uk)
The UK will join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a vast free trade area of 11 countries spanning the Indo-Pacific, the Prime Minister has announced today [Friday 31March].
The historic agreement follows two years of intense negotiations by the Department for Business and Trade and puts the UK at the heart of a dynamic group of economies, as the first European member and first new member since CPTPP was created. We would not have been able to join as a member of the EU, demonstrating how the UK is seizing the opportunities of our new post-Brexit trade freedoms to drive jobs and growth across the country.
The bloc is home to more 500 million people and will be worth 15% of global GDP once the UK joins. It is estimated that joining will boost the UK economy by £1.8 billion in the long run, with wages also forecast to rise by £800 million compared to 2019 levels.
Piyush Goyal asks G20 members to find common solutions to gaps in global trade (The Hindu)
Union Commerce & Industry Minister Piyush Goyal on Thursday urged G20 member countries to find common solutions to address gaps in the global trading system. He was speaking at the closing of the three-day 1st G20 Trade and Investment Working Group (TIWG) meeting which was held in Mumbai.
“TIWG has an important role in formulating concrete outcomes for inclusive growth that drive trade and investment across [the] Global South, and not among G20 member countries only,” Mr Goyal said.
Advocating for equitable distribution of the benefits of global trade by and among all countries, including developing and least-developed countries (LDCs), he said there must be progress towards a new world that is driven by collaboration, sustainable growth and a solutions-oriented mindset.
EU reaffirms commitment to supporting Bangladesh after LDC graduation (Dhaka Tribune)
Bangladesh highlighted how it has rightly utilized the EU's EBA trade facility, which has directly contributed to socioeconomic development and transformed the lives of millions
The European Union (EU) has reiterated its commitment to supporting Bangladesh for a sustainable and smooth transition in its graduation from the least-developed country (LDC) status.
Expressing the view during meetings held in Brussels on Wednesday, the members of the European Parliament and senior officials of the European Commission commended Bangladesh on its development trajectory and reiterated the EU's commitment to supporting Bangladesh for a sustainable and smooth transition in its LDC graduation, reads a press release issued Thursday.
ADB says ASEAN must act if strengthen position in global value chains (Khmer Times)
Association of Southeast Asian Nations (ASEAN) economies must strengthen their positions in global value chains to bolster resilience against new challenges, including future pandemics, geopolitical instability, and climate change, says an Asian Development Bank (ADB) report released on Thursday.
The report ASEAN and Global Value Chains: Locking in Resilience and Sustainability surveys the challenges and opportunities facing global value chains in Southeast
Asia as countries seek to build greater resilience and promote sustainability and green development, according to Xinhua “As ASEAN countries continue their recovery from COVID-19, we must ensure that economic revitalisation happens in a greener and more sustainable way,” ADB.
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Technology Commercialisation is Capable of Driving Economic Transformation (the dtic)
The use of technology commercialisation can contribute to economic transformation through the introduction of diverse new products and services in the market. This can ultimately result in the creation of new products, as well as the establishment of new businesses and industries which can serve as a base for a full-scale localisation and industrialisation.
This was said by the Deputy Minister of Trade, Industry and Competition at the Fourth Intellectual Property and Technology Commercialisation Colloquium
held at the North-West University, Mahikeng campus from 28-29 March 2023, under the theme Advancing Innovation through IP Commercialisation for Full-scale Industrialisation.
According to Deputy Minister Majola, a well-designed and well-performing intellectual property regime can improve the innovative capacity and competitiveness of the economy. Importantly, he said South Africa needs to embrace the Fourth Industrial Revolution as part of the ongoing economic recovery plan and to advance the industrialisation agenda.
Furniture Master Plan Will Deepen Localisation, Boost Competitiveness - DDG Zalk (the dtic)
The Acting Deputy Director-General of Industrial Competitiveness and Growth at the Department of Trade, Industry and Competition (the dtic), Dr Nimrod Zalk says the furniture industry master plan will go a long way in strengthening localisation and enhancing the competitiveness of the industry. Zalk was speaking at the prize-giving ceremony of the National Furniture Design Competition at the Buy Local Summit in Sandton.
“The furniture sector is amongst those that are prioritised by business, labour and government as being able to contribute significantly to employment growth, in particular. Collectively we have been working on a furniture industry master plan that will strengthen and deepen localisation of furniture production in the short term, and lead to greater international competitiveness in the medium term,” said Zalk.
Energy Action Plan makes progress (SAnews)
Mineral Resources and Energy Minister, Gwede Mantashe, says the Energy Action Plan (EAP) that government has implemented to address the electricity crisis is beginning to make progress. Mantashe was addressing the North West Mining and Energy Investment Conference on Thursday.
Mantashe said government is committed to resolving the country’s energy challenges guided by the optimal energy mix envisioned in the Integrated Resources Plan (IRP) 2019 and - as envisioned in the EAP - to improve the performance of existing Eskom power stations.
Mineral Resources and Energy Minister, Gwede Mantashe, says the Energy Action Plan (EAP) that government has implemented to address the electricity crisis is beginning to make progress.
Cabinet approves Bill to open power market (Engineering News)
Cabinet approved a Bill on electricity regulation designed to clear the path for private generation projects and power trading.
State-owned Eskom Holding has provided more than 90% of electricity used by the most industrialized nation on the continent for a century. The Electricity Regulation Amendment Bill outlines an entity to buy power as a step toward establishing a competitive market.
The bill will strengthen the role of the National Energy Regulator of South Africa and allow measures to create a transmission system operator that includes the “provision of an electricity trading platform on a multi-market basis, and provide access to the transmission network on a non-discriminatory basis,” Ntshavheni said in a statement.
South Africa’s overall trade with its BRICS partners has increased since 2017 (IOL)
Professor Anil Sooklal, Ambassador-at-Large for Asia and BRICS during an online engagement with business during the BRICS economic indaba on Thursday, said the purpose of the gathering was to solicit the support of, and galvanise, South African business behind the BRICS Programme of Work.
South Africa took over as chair of BRICS on January 1 under the theme “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism”, in what was described as a difficult national and global economic environment.
“It is crucial to inspire and cement the participation of all sectors of business behind our 2023 Agenda. SA BRICS chairship provides business with the unique and valuable opportunity to sustainably advance the economic and developmental needs of both our economy and that of the rest of the African continent,” Sooklal said.
Kenyan agricultural firms get $5m grants from US agencies (The East African)
Seven budding Kenyan companies operating in the agricultural sector have received a $5.1 million grant from the United States to expand their business activities while working towards addressing the country’s food insecurity challenges.
The United States Agency for International Development (USAID), in partnership with the US government’s trade promoter, Prosper Africa, and Feed the Future Initiative announced the grants on the side-lines of the American Chamber of Commerce (AmCham) business summit in Nairobi Wednesday.
The agencies said the grants to the private companies will “support access to agricultural inputs and production technologies while expanding Kenyan value-added processing and the export of products like macadamia nuts and dried fruit”, as well as boost incomes for over 1 million Kenyan farmers.
“This comes at a time when many of these farmers are faced with recurrent drought and significant price increases especially in essential commodities that has been driven by Russia’s invasion of Ukraine,” said USAID’s mission director for Kenya David Gosney.
Kenya’s special economic zones get own power rate (Business Daily)
Investors domiciled in the 15 special economic zones will from this Saturday start paying a special tariff of Sh10 per kilowatt hour as the energy regulator moves to harmonise rates and entice more firms to set up in the tax-free regions. These are part of the new electricity tariffs that the Energy and Petroleum Regulatory Authority (Epra) approved last week.
Epra says apart from investors at Naivasha’s Kedong SEZ, which are currently enjoying Sh5 per unit tariff, all the other special economic zones will now have a uniform tariff from this weekend.
Parliament passes Local Content Bill, gives priority to EAC goods (New Vision)
Parliament has passed the Local Content Bill 2022 into law, giving priority to goods and services produced in the East African Community (EAC) as opposed to only goods produced in Uganda.
The bill, which was first introduced in the 9th Parliament, has been returned to the House for reconsideration by President Yoweri Museveni over its contradiction with various EAC trade protocols, such as the Common Market Protocol, which provides for the elimination of trade barriers.
Museveni returned the bill to Parliament for a second time and raised concern over sections that he deemed to conflict with the spirit of the East African Community Protocol on the free movement of goods and services.
Chaired by Speaker Among, the House on Wednesday passed the Bill after adopting most of the recommendations as advised by the President.
TZ-US TRADE: Envoy touts mutual benefits (Daily News)
NEWLY appointed American Ambassador to Tanzania, Mr Michael Battle, has listed his top priorities for promoting trade and investment between the two countries during his tenure in office.
According to him, all US ambassadors are responsible for maintaining close ties between Tanzania and the US government, including strengthening good relations that have existed since the era of Mwalimu Julius Nyerere in 1960s.
For a long time, the envoy said the US relationship with Africa has been a relationship of donor and giving aid. “We are still the largest private donor to Tanzania in terms of the amount of money we spend in healthcare and development and we think that is important,” he said.
Dr Battle said there was also a shift that began with President Barack Obama who said the US relationship with Africa must be one of strategic partnership where there is mutual growth and development. “So, then the notion of trade and investment began to be more prominent, ‘Prosper Africa’ was part of that notion that in order for Africa to take off with its own industrial revolution it has to have the electrical grid to make it possible,” he explained.
He says that the Biden administration has reverted to the idea that trade and investments are the defining characteristics.
Rwanda’s exports revenue grows, trade deficit widens (The New Times)
Rwanda’s export value increased by 33.2 percent in 2022, mainly driven by commodity prices and strong domestic manufacturing activities exported in the region.
The overall export receipt amounted to $1,555.6 million, up from $1,167.8 million in 2021.
This was announced on March 29, during the presentation of the Monetary Policy and Financial Stability Statement by the Central Bank that assessed the economic performance in 2022 and prospects for 2023.
John Rwangombwa, Central Bank Governor, said the growth is attributed to the increase in manufactured goods exported in the region and generally good commodity prices on international markets.
Traditional exports such as minerals, coffee and tea registered a 27.7 percent growth while non-traditional exports (manufactured products and horticulture) increased by 26.8 percent and re-exports by 39.3 percent.
The Prime Minister of the Republic of Mauritius, Honourable Pravind Kumar Jugnauth, has called for the implementation of more joint projects to ease connectivity and enhance intra-regional trade among Member States of the Southern African Development Community (SADC).
The Prime Minister made the call when he received a courtesy from the Executive Secretary of SADC, His Excellency Mr. Elias M Magosi, at the New Treasury Building in Port Louis, Mauritius, on 27th March 2023.
Hon. Jugnauth said there was a huge potential and opportunities for economic growth and industrialisation in SADC, because the community has abundant natural resources and raw materials. He added that, what the region needed was more collaboration and joint projects to make connectivity easy, facilitate intra-regional trade, and reduce the cost of doing business.
H.E. Magosi sighted the SADC Regional Development Fund (RDF), which was proposed nearly a decade ago, as a self-financing and revolving mechanism intended to end reliance on external support, as well as leverage private sector funding to drive the region’s development agenda as a key instrument that needed signatures. The agreement to operationalise the fund has been signed by only nine Member States, and none of them, has deposited instruments of ratification with the SADC Secretariat. With the RDF in place, the region will be able to determine the type and scale of tangible projects and programmes to make positive impact on the lives of the citizens of the SADC region.
Banks to set up 20m capital to boost innovative market (Vanguard)
The President, Chartered Institute of Bankers of Nigeria, CIBN, Mr. Ken Opara, said the banking industry is setting up a $20 million human capital fund to groom and nurture financial innovation in the industry.
Speaking yesterday at the CIBN 2023 annual lecture themed: ‘Unlocking the constraints to Africa’s economic transformation: Insights into the power of capital’ held in Lagos, Opara said: “The banking industry is setting up a $20 million human capital fund for the purpose of grooming and nurturing a pool of financial innovative market ready workforce for the Nigerian Banking Industry.
Indian delegation explores investment opportunities in S Africa, Botswana (Business Standard)
A multi-product Indian business delegation on a five-day visit to South Africa and neighbouring Botswana has been well-received by potential partners for trade and investment in both countries, the delegation leader said on Wednesday.
Under the theme Balancing and Nurturing Trade Relations and Developing Promising Bilateral Trade, day-long seminars including local speakers were co-hosted by FIEO and the Indian missions in Johannesburg and Gaborone, followed by Business-Business meetings and interactions with government ministers and officials.
The African region has always been a very attractive market due to the huge market potential, so the delegation was aimed at exploring the opportunities from this very lucrative continent, Khan said.
African free trade area lets youth to take control of their destiny, Secretary General says (World Bank Blog)
A fragmented internal market has long hampered trade among African nations. That has prevented the continent from fully sharing in the economic benefits of international trade, which has helped raised more than a billion people worldwide out of poverty in recent decades. But the African Continental Free Trade Area (AfCFTA) promises to be a game changer. It would create a single market that unites 54 countries with a combined population of 1.3 billion and GDP of $3.4 trillion. It promises to boost intra-African trade and investment by reducing tariffs and other barriers and harmonizing regulations in areas such as e-commerce and intellectual property rights. African business leaders are scheduled to gather in Cape Town April 16-19 to discuss the benefits of the agreement for the private sector. In advance of that meeting, we are publishing this edited transcript of a conversation with Wamkele Mene, secretary general of the AfCFTA, who visited the World Bank late last year:
Q: What can be done to ensure that inequality among countries in Africa doesn’t widen as a consequence of the agreement? A: We have countries in the AfCFTA with GDP per capita of $110, and then at the other extreme, GDP per capital of $25,000. We have countries that are relatively industrialized, and we have countries that import everything, including basic agricultural products. There are countries who are going to benefit immediately, because they have the export capacity. So how do we get those countries who today may not have industrial capacity to believe that they will benefit, too, and to see the results? Otherwise politically it will become unsustainable for them to remain in a free trade area where only the largest economies are benefiting. That’s why we have gone to [the African Export Import] Bank, and we have said, “There is this problem that some countries are overly reliant on tariffs as revenue generation tools, how do we mitigate their condition? ” So, Afreximbank has made available a facility which will be up to $10 billion. Thus far, there is about $1.2 billion that has been mobilized to assist countries to mitigate the cost of adjusting to the AfCFTA.
Africa’s 2030 Universal Electricity Access Goal: “Clock running out,” says Adesina in Berlin (AfDB)
African Development Bank Group President Dr Akinwumi Adesina has told a high-level international conference in Berlin that urgent action is needed to reduce the world’s dependence on fossil fuels and harness Africa’s renewable energy sources.
Making his remarks at the Berlin Energy Transition Dialogue, hosted by the German federal government, Adesina called on Germany to invest in a cleaner, brighter, and more prosperous future for Africa. While underscoring Africa’s success enormous potential to become a global leader in sustainable development, Adesina highlighted the significant energy challenges millions of Africans still face. In 2022, at least 600 million people did not have access to electricity, and 970 million lacked access to clean energy for cooking.
Adesina said in order to achieve the United Nations Sustainable Development Goal 7 of affordable, reliable, sustainable and modern energy for all, the continent must connect 90 million people annually to electricity by 2030 and shift 130 million people from dirty cooking fuels each year. He acknowledged the scale of the challenge, noting that Africa’s energy transition would require an estimated $100 billion annually between 2020 and 2040.
Adesina said Africa’s significant reserves of cobalt, manganese, and platinum could be utilised to build a robust manufacturing sector rather than being merely exported as raw materials.
Kenya, Congo and Chad Accede to Afreximbank’s Fund for Export Development in Africa (FEDA) Establishment Agreement (Afreximbank)
The Republics of Kenya, Congo and Chad are the latest signatories to the Establishment Agreement of the Fund for Export Development in Africa (FEDA), the development impact-oriented subsidiary of African Export-Import Bank (Afreximbank).
These successive accessions provide positive momentum for FEDA and demonstrate a shared commitment from Afreximbank Member Countries to support the organization’s impact investing objectives. It creates a powerful catalyst to increase equity and equity-like funding for African companies that promote industrialization, Intra-Africa trade and value-added export development.
Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank and FEDA, said: “The accession to the FEDA Establishment Agreement by the Republic of Kenya, the Republic of Congo and the Republic of Chad are important steps that are expected to catalyse more investment by FEDA towards these countries’ industrialization and value-add export development. We are delighted to onboard these new Member Countries and we look forward to mobilizing other Afreximbank Member States in due time to support FEDA’s pan-African expansion.”
Speech by David Malpass, President of the World Bank Group Delivered in Niamey on March 30, 2023 (World Bank)
Over the last few years, the world has faced an unprecedented series of crises.
The COVID-19 pandemic cost millions of lives, caused massive job losses, and disrupted supply chains. It led to the loss of more than one full year of education for one billion children around the world, which underscores the urgency of a strong recovery in education. The pandemic also triggered extraordinary policy responses, with macroeconomic consequences still being felt. Inflation soared with governments providing massive fiscal and monetary support to counter the pandemic, especially in the advanced economies. The war in Ukraine triggered outright shortages of fuel, food, and fertilizer. Natural disasters struck hard too – from earthquakes in Türkiye and Syria to floods across South Asia and catastrophic drought in East Africa.
Developing countries have suffered the most from this onslaught of crises. The pandemic increased the global extreme poverty rate from 8.4 to 9.3 percent, the first recorded increase since we started keeping count. The true death toll remains unknown in many parts of the world. Now, a growing number of developing countries are facing the prospect of major domestic crises, with economic growth slowing, poverty and hunger on the rise, public debts reaching unsustainable levels amid rising interest rates, ineffective mechanisms for resolving external debt distress, underinvestment, and growing populations.
Confronted by these developments, we have the responsibility to forcefully reassert core economic principles for development in every country.
AfCFTA to increase the volume of Intra African trade to over 40% by 2045 (New Vision)
The implementation of the African Continental Free Trade Area (AfCFTA) is likely to increase the volume of intra-African trade to over 40% by 2045. This was revealed by Hermogene Nsegimana, the Secretary General of the African Regional Standards Organization (ARSO), during the training of African Experts Responsible for Standards Development and Harmonization Required to Facilitate Intra-Africa Trade Under the Africa Continental Free Trade Area.
David Livingstone Ebiru, the UNBS Executive Director said, the capacity building of experts is aimed at responding to the increasing demand for African Countries to increase the volume of trade among themselves, which is currently standing at 16%.
Odrek Rwabwogo, the Senior Presidential Advisor of Exports and Industrial Development urged the standards’ experts to preserve African heritage and culture by prioritizing indigenous standards for African Organic Products.
Single air transport market could add impetus to lagging recovery of African carriers (Engineering News)
The post-Covid-19-pandemic recovery of the African airline industry is lagging behind that of other regions of the world, but it is recovering, International Air Transport Association (IATA) External Affairs & Sustainability: Africa & Middle East regional business development manager Sandile Chipunza pointed out at the recent Board of Airline Representatives of South Africa (BARSA) conference, in Cape Town.
African airlines’ annual traffic last year was up 89% on that for 2021, and reached 86% of the levels recorded before the pandemic, he reported. The continent’s airlines registered total losses of $638- million last year, which were forecast to decline by 66% this year, resulting in total losses of $213-million for 2023.
However, IATA forecasts that, globally, the airline industry will make a profit of $4.7-billion this year, from total revenues of $779-billion. Last year, worldwide, the sector recorded a loss of $6.9-billion. Over the period of the pandemic, airlines globally suffered total losses of $42-billion.
Returning to Africa, the continent’s airlines last year also registered a 51% increase in capacity, compared with 2021. Their average load factor rose to 71.7%, but this was the lowest figure for any of IATA’s regions. “[W]e know each [African] sub- region moves at its own pace, reflecting its unique advantages and obstacles,” he cautioned. “Some have seen demand return faster than others.”
South Africa to use Brics chair in 2023 to advance Africa’s trade, development (Engineering News)
South Africa will use its position as the 2023 chair of the Brazil, Russia, India, China and South Africa (Brics) multilateral bloc to advance the interests of African States, under the theme of ‘Brics and Africa partnership for mutually accelerated growth, sustainable development and multilateralism’.
Trade, Industry and Competition Minister Ebrahim Patel, during a South Africa Brics Business Council working groups briefing on March 30, said South Africa exported a significant quantity of goods to other African countries and this was where its largest potential for growth lay.
The volumes and value of trade between South Africa and other Brics countries were significant. However, much of the exports were simply to supply raw materials, particularly minerals, to these economies, he highlighted.
In addition to precious metals, the primary products exported are coal, iron-ore, manganese and chromium, as well as some semi-manufactured goods. Mining products dominate the export basket to South Africa‘s Brics partners.
China’s Investment In Africa Has Cut Need For Loans From World Bank, IMF—Osinbajo (Business Post Nigeria)
The Vice President of Nigeria, Mr Yemi Osinbajo, has lauded China’s investment in Africa, saying it has reduced dependency on loans from Bretton Woods, which consists of the World Bank and the International Monetary Fund (IMF).
In a statement seen by Business Post, the VP, at an event at King’s College London on March 27, 2023, stated that “China shows up where and when the West will not and or are reluctant.”
He said this was evident in the investment of the Asian giant in Africa, which he said stood at $254 billion in 2021, about four times the volume of US-Africa trade.
He also noted that, “China is the largest provider of foreign direct investment, supporting hundreds of thousands of African jobs. This is roughly double the level of U.S. foreign direct investment, adding that, “China remains by far the largest lender to African countries.”
Developing countries cannot afford to miss out on the green tech revolution (UNCTAD)
One of the main takeaways of UNCTAD’s Technology and Innovation Report 2023 is that national governments and the international community must act now to avoid leaving developing countries out of the green technological revolution that is quickly unfolding. Green technologies are those related to the production of goods and services with lower carbon footprints.
The markets of green technologies have been expanding at unequal rates throughout the world, with disadvantages for developing countries. One example is the exports of green technologies related to renewables and electric vehicles. Between 2018 and 2021, developing countries’ exports grew by about 32% only, from $57 billion to $75 billion, while those of developed economies more than doubled, $60 billion to $156 billion.
Worryingly, developing countries lag in more than trade. They hardly feature in the list of top suppliers of frontier technologies and sources of patents and publications. Except China.
Gender equality and women’s empowerment in Botswana has progressed over the past 20 years with Botswana having made significant strides toward equal treatment of women under the law, reveals the latest edition of the 2023 Women, Business and the Law (WBL) report. These findings and the report were discussed in a workshop this week convened by the World Bank in collaboration with the Government of Botswana, through the Ministry of Youth, Gender, Sport and Culture to commemorate International Women’s Day.
“Since the early 2000s, the average Women, Business and the Law score for Botswana has improved by more than 25 points, rising from 38.1 to 63.8,” says Marie Francoise Marie-Nelly, World Bank Country Director for Eswatini, Botswana, Lesotho, Namibia, and South Africa. “Despite this progress, the latest edition of the report shows that the pace of legal reforms toward gender equality has slowed down in recent years, constituting a potential impediment to economic growth. More needs to be done to increase legal equality of opportunity for women around the world and in Botswana.”
Least-developed countries share experiences on trade in essential goods to fight COVID-19 (WTO)
Bangladesh, Cambodia, Lao People’s Democratic Republic, Lesotho, Myanmar, Niger, Togo and Zambia shared their practices and experiences on trade in COVID-19 related goods. Other speakers from developing and least-developed countries also took the floor. They noted that the pandemic severely impacted LDCs, particularly as a result of disruptions in global supply chains of essential goods and their heavy dependency on imports of food and health-related items.
The pandemic affected LDCs’ trade not only by slowing down trade across borders and changing patterns in trade in services but also by disrupting administrative processes and access to finance.
LDC representatives highlighted the need to enhance global dialogue and cooperation when it comes to emergencies and in areas of relevance to digitalization, development and access to finance. Regarding imposing trade restrictions at times of crisis, they reinforced the message that such measures should be targeted, proportionate and temporary, and that special consideration and flexibility should be extended to LDCs not only to help them deal with the crisis but also recover from the crisis.
Members consider five trade agreements, discuss how to improve functioning of Committee (WTO)
The Committee also considered the Economic Partnership Agreement (EPA) between the ESA States and the UK, Goods. The Agreement entered into force on 1 January 2021 for the UK, Mauritius, Seychelles and Zimbabwe. Madagascar and Comoros have also signed the Agreement but have not yet put it into force under their domestic legislation. In a joint statement, the four current parties to the Agreement said the EPA provides continuity and certainty for ESA and British businesses following the UK’s withdrawal from the European Union. Overall trade was worth GBP 1.1 billion pounds in 2022 and all parties are keen to see further growth.
The Agreement is development orientated with asymmetrical tariff liberalization commitments, providing duty-free, quota-free market access for goods originating in ESA States in the UK market. The Agreement also provides for generous rules of origin to allow more ESA products to qualify for preferential tariffs. On the other hand, ESA States will progressively and gradually liberalise their tariffs over a number of decades for goods originating from the UK.
The EPA also allows ESA States to maintain regional preferences to other African countries and regions without having them extended to the UK. The UK is also required to extend to ESA States any more favorable treatment resulting from a future trade agreement with a third party.
Volatile commodity prices reduce growth and amplify swings in inflation (IMF)
Food and energy prices surged to near historic highs in recent years amid the pandemic and the war in Ukraine, which prompted major supply disruptions. This was accompanied by a sharp rise in the volatility of commodity prices as well.
Worryingly, the up-and-down swings in commodity prices will likely pose economic challenges in coming years. We explore the effects of volatile commodity prices in a new report on food and energy insecurity that was prepared for the Group of Twenty.