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More work on regulation codes certification and standards needed for hydrogen economy (Engineering News)
If South Africa wants to develop a hydrogen economy, it cannot have ad hoc regulations, codes and standards (RCS) and certification systems. More work was required to develop RCS that addressed regulatory gaps and facilitated the development of a hydrogen economy, transaction advisory company RebelGroup South Africa senior consultant Laurens Cloete said last week.
“If we want a green hydrogen economy, we require a comprehensive approach to RCS. Green hydrogen certification is also critical for exporting green hydrogen to countries that do not have sufficient renewable resources but require clean energy sources.”
Further, the South Africa Hydrogen Society Roadmap and the Green Hydrogen Commercialisation Strategy of the Industrial Development Corporation (IDC) highlight the criticality of RCS across the chain value.
TZ calls for strong measures to combat illegal diamond trade (Daily News)
Tanzania has called for an increased accountability, transparency and implementable measures to combat illegal diamond trade in the world. Permanent Secretary in the Ministry of Minerals, Mr Kheri Mahimbali, who is the outgoing African Diamond Producers Association (ADPA) Chairman has also urged the association to continue bolstering relationships with international partners as well as improving the lives of miners and their families.
He said African Diamond Producers face numerous challenges, including fluctuating diamond prices, competition from synthetic diamonds, the continued threat of illegal mining and smuggling.
He further noted that through a lot of efforts and cooperation by all member states, the reform process led successfully to the amendments of the Statute, the Internal Regulation of the Executive Secretariat of ADPA.
“We can achieve the goal of the Africa Mining Vision towards a transparent, equitable and optimal exploitation of mineral resources for sustainable growth and socio-economic development through such initiatives as the ADPA,” President of Zimbabwe, Dr Emmerson Mnangagwa added.
Kabwe Port lifts cross-border trade (Daily News)
THE construction of Kabwe Port on Lake Tanganyika has lifted cross-border trade between Tanzania and land-linked countries, particularly the Democratic Republic of Congo (DRC) and Burundi.
Farmers and local entrepreneurs told the ‘Daily News’ on Sunday that since the construction of the port, there has been an increase in money circulation and lifted the livelihood among Nkasi dwellers due to improved trade.
“More traders from within and outside Tanzania are now buying food crops and ferry them to DRC, Burundi and Kigoma, our economies have improved,” Julius Kagosha, a maize and cassava grower, said.
Dar to benefit from import cargo redirected from Mombasa (The East African)
Tanzania is waiting in the wings of Kenya’s political uncertainty to raise its position as an import and logistics hub, especially with regional importers of fuel who are increasingly opting for the Dar es salaam route because of safety. Last week, Kenyan opposition leader Raila Odinga was under pressure from several quarters – both local and international – to call off protests and instead opt for talks.
Odinga had rallied supporters to the streets to protest the increasing cost of living and electoral injustice, demanding an audit of electoral commission servers, but those in government dismiss the riots as a ploy to coerce President William Ruto into a power-sharing agreement – like the one he had with former president Uhuru Kenyatta.
The epicentres of the protests lie on the Northern Corridor – the artery linking Kenya’s port of Mombasa to landlocked neighbours Uganda, Rwanda, South Sudan and the Democratic Republic of Congo – threatening transport and logistics on the key route.
Dar es salaam is angling for a share of Mombasa’s total cargo throughput, which has increased steadily over the past five years, from 30.35 million metric tonnes (MT) in 2017 to 34.55 million MT in 2021, according to the Northern Corridor Observatory Report 2022.
“The Dar es Salaam port handles around 50 percent of what the port of Mombasa does,” said Omae Nyarandi, executive secretary of the Northern Corridor Transit and Transport Coordination Authority (NCTTCA). “In terms of cargo traffic, Uganda’s cargo from Mombasa is at 98 percent, while her goods from Dar es Salaam are at two percent; Burundi - Mombasa three percent, Dar es Salaam 97 percent; DRC - Mombasa 30 percent, Dar 70 percent; Rwanda - Mombasa 25 percent, Dar 65 percent), and South Sudan - Mombasa 100 percent,” he added.
Ghana urged to enforce existing policies to guard operations of SOEs (BusinessGhana)
Dr. Willard Mugadza, the International Consultant on the African Peer Review Mechanism (APRM) at the African Continental Free Trade Area (AFCFTA) has lauded the country for the legal frameworks and policies to guard the operations of State-Owned Enterprises.
He said, “what we have so far identified is that, since our engagement in Accra with state owned enterprises, is in terms of the legal frameworks and policies, the legal framework is there, the policies are there, but there is more work that needs to be done in terms of implementation of the existing legal framework.”
He said there was also the need for capacity building for SOEs since without robust and good corporate governance, especially through your SOEs, which were the implementing agencies of AFCFTA it would be difficult for the private sector, informal sector, small to medium enterprises to quickly engage for full participation of the opportunities AFCFTA presented to growing individual economy under the African programme.
The International Consultant added that issues of Rules of Origin in Trade Area were also a critical subject for access to the market, which behooved on Ghana to promote total compliance…for Ghanaian companies to comply with the requirements of Rules of Origin, it will require ethical good transparency, competent and effective leadership, some of the core principles of corporate governance.
Namibia, Nigeria Boosting Trade, Investment Through Bilateral Ties (Leadership News)
The bilateral ties between Namibia and Nigeria raise hope of increased trade and investment and the potential to boost tourism as both countries work to strengthen the long-standing friendships that started in the days of the struggle for independence.
High Commissioner of Namibia to Nigeria, Humphrey Geiseb, said the ties between both countries will further be boosted this year, when Namibia will host the 5th Session of the Namibia-Nigeria Joint Commission of Cooperation. This meeting, according to the Namibian envoy, will allow the two countries to review and build on the outcomes of the 4th Session which was held in 2010. Furthermore, there will also be a review of the number of Agreements signed during the past decade.
In the past four years, Nigeria has invested in Namibia and created value with the blossoming of two Charcoal factories owned by Nigerian investors in Namibia. These two companies, Premier Charcoal based in Outjo and King Charcoal in Walvis Bay, are an excellent demonstration of utilising African expertise to develop African raw materials, Ambassador Geiseb said.
He said further that “This is indeed a great stepping stone to robust intra-African trade that all African countries will enjoy under the African Continental Free Trade Area, adding that the two countries have worked on more than 10 Agreements that are ready for signature during the 5th Session of the Joint Commission.
Boost for LAPSSET as S.Sudan picks 16 priority areas (The Star)
Kenya’s quest to increase commercial activities at the Lamu Port has received a major boost with the completion of a strategic plan for related projects by South Sudan.The neighbouring country which is part of the Sh2.5 trillion Lamu Port-Southern Sudan-Ethiopia Transport (Lapsset) corridor has identified 16 projects that include road networks, the design and construction of the Lapsset Corridor Road and power projects, whose implementation is awaiting funding.
It is also keen on a fiber-optic national broadband backbone, agriculture and irrigation programmes, national petroleum and minerals survey, manufacturing and value addition, transport and logistics programmes, oil and gas, and mining of minerals and strategic environmental safeguard studies, all leaning towards the Lapsset corridor.
According to senior advisor of the Africa Trade Center to the United Nations Economic Commission for Africa, Adeyinka Adeyemi, they have agreed on roads, power and agriculture as the first three priority projects to be implemented for South Sudan. This is a milestone as Kenya continues to develop its infrastructure from the Lamu Port to borders with Ethiopia and South Sudan. They include Lamu-Garissa-Isiolo and Lokichar roads.
The Southern African Development Community (SADC) has made great strides in improving the Region’s economic and social development since the inception of the Support to Industrialisation and Productive Sectors (SIPS) programme in 2019, assisting the Region in the implementation of the SADC Industrialisation Strategy and Roadmap which was adopted in 2015.
Speaking exclusively with The Citizen, a newspaper from the United Republic of Tanzania, SADC’s Acting Director for Industrial Development and Trade, Mr Calicious Tutalife, said these strides include enhancing the regulatory and policy environment within the Member States as well as more capacity building to the Member States on understanding their participation.
“To enhance participation in value chains, we have to look at capacitating Member States to understand where opportunities are so that not all Member States end up focusing in one area. You have to understand where advantages and opportunities are within a specific value chain. We have also looked at issues of intellectual property rights,” he said.
Central bank chiefs commit to EAC 2031 currency deadline (Business Daily)
The Governors of Central Banks in East Africa have agreed to fast-track the implementation of a common currency by 2031 after a set deadline of 2024 proved to be unviable. The 26th ordinary meeting of the East African Community (EAC) Monetary Affairs Committee, which brings together CBK governors from member States, said progress is being made to ensure that the 2031 timeline for achieving a common currency is achieved within the set time frame.
The meeting, held in Burundi last week, noted that Partner States’ central banks have made significant strides towards the establishment of key institutions of the East African Monetary Union (EAMU).
“Notwithstanding the progress, the Committee noted the revised timelines set out in the EAMU roadmap, with the new date of achieving the monetary union by 2031. Therefore, the Committee reaffirmed their commitment to work together and with the EAC Secretariat to fast-track implementation of activities in the revised EAMU roadmap,” reads a communique from the EAC.
Cereals board targets EAC, Sadc countries with new milling plant (The Citizen)
The Cereals and Other Produces Board (CPB) is set to install a milling and packaging plant in Iringa Region as part of efforts to meet the growing demand for maize flour in the southern regions and the neighbouring countries. In effect, the state-run agency targets countries in both the Southern African Development Community (Sadc) and the East African Community (EAC).
The board has a plant in operation that was commissioned in 1976 to process between 50 and 55 tonnes of maize a day, but its current capacity is about 45 tonnes of maize flour.
“This production capacity does not at all serve CPB and the nation well; hence, the solution is to add a new production line. We are reliably sure that the new plant will facilitate national efforts to see Tanzania become a net exporter of foodstuffs,” said CPB zonal manager for the southern highlands, Dr Jaspa Samuel.
Consultation and sensitisation of Mozambican key stakeholders on AfCFTA progress (UNECA)
Jorge Jairoce, Permanent Secretary, Mozambique Ministry of Industry and Commerce (MIC) says, “our country is strongly committed to pushing the African Continental Free Trade Area (AfCFTA) agenda by signing and ratifying the AfCFTA Agreement, negotiating critical trade protocols and preparing the implementation of the National AfCFTA Strategy, including support to private sector”.
He said this in Maputo at a two-day National Consultative Meeting and Awareness Workshop on the National AfCFTA Strategy of the Republic of Mozambique.
In her opening remarks, Isatou Gaye, Chief Sub-Regional initiatives, speaking on behalf of Ms. Eunice Kamwendo, Director of the SRO-SA said that since 2021 ECA and the Mozambique Ministry of Industry and Commerce have been collaborating to implement a technical assistance project aimed at strengthening the production of external trade statistics in the country. Mozambique, she said, is currently Chair of the Bureau of the Inter-Governmental Committee of Senior Officials and Experts for Southern Africa (ICSOE), which provides guidance on ECA’s work in the region.
Mr. Prakash Prehland, Vice-President, Confederation of Economic Associations of Mozambique represented the private sector. He stressed the importance of the AfCFTA in connecting businesses and opening continental trade for Mozambique and called on his country to align with the necessary AfCFTA instruments. “There is high demand for Mozambican products, AfCTA protocols will help private sector capitalise on its benefits. Currently, only 28% is continental trade and most of it is with South Africa”.
Zim still unprepared for AfCFTA: CZI (The Standard)
ZIMBABWE’s leading industrial lobby group, the Confederation of Zimbabwe Industries (CZI) says there are several issues still to be addressed before local businesses can join the Africa Continental Free Trade Area (AfCFTA)
“Developments from the AfCFTA reveals that there is a private sector mapping initiative, which helps the private sector to identify opportunities for collective action, key challenges, or success factors for industry engagement,” CZI said in its latest business oversight article.
“This also underlines that there are a number of issues still needed for Zimbabwe businesses to be ready to exploit the opportunities that will arise from continental integration.”
Ghana takes advantage of AfCFTA to boost trade relations with Kenya (Business Insider Africa)
The West African state will establish an Export Trade House (ETH) in Kenya as part of the measures to promote trade relations between the two countries. Ghana will organize a three-day business expedition before the trade fair to highlight the goods it plans to import into Kenya.
Trade barriers between the nations of East and West Africa have historically been low because of regulatory restrictions. Nonetheless, many African nations are now trading more independently thanks to the AfCFTA, the largest free trade area in the world. The first two nations to sign their AfCFTA ratification agreements on the same day were Kenya and Ghana.
“The overarching purpose of this Trade House is to serve as a one-stop wholesale outlet in the Eastern bloc of the continent for all Made in Ghana Products,” said Ghana’s High Commissioner to Kenya Damptey Bediako.
Businesses optimism significantly less than 6 mths ago: Standard Bank
Optimism among Ghanaian businesses has reached a significantly low level than it was six months ago, the Africa Trade Barometer (ATB) report by Standard Bank Africa has revealed.
The report states that the main contributing factor to this decline in confidence is the high prices on products and the perception of a poor-performing economy linked to the poor-performing Ghanaian cedi, which had lost half of its value in the past year. In addition, the perception of the government’s support of trade is also significantly lower.
Ghana ranks 2nd on the ATB and QTB, but last on STB. The ATB report provides reliable data and insights on African markets gathered from 2554 firms representing small, big and corporate businesses across all 10 economies during August and September 2022.
One Country One Priority Product advances in Africa (APO)
The One Country One Priority Product (OCOP) initiative, launched by FAO in 2021, aims to promote agricultural development by identifying and prioritizing one essential agricultural product per country that has the potential to increase farmers' incomes and improve food security. Since the launch of OCOP, over 80 Members from all five FAO regions have expressed their strong interest in promoting the green development of over 50 Special Agricultural Products. With 27 African countries expressing their interest in joining the initiative, Africa is leading the implementation at the global level.
The OCOP initiative in Africa so far focuses on developing 18 Special Agricultural Products (SAPs), including avocado, cashew, meat and teff, which have unique qualities and special characteristics associated with geographical locations, farming practices, and cultural heritages.
Why Africa needs knowledge transfer more than grants, by Aboyeji, Ghaim (The Guardian Nigeria)
With the rise of many startups in the technology and creative industries in Nigeria and the continent, Africans have been urged to work more on providing solutions to problems, rather than rely solely on remittances and grants from the diaspora.
Speaking over the weekend at the African Diaspora Investment Summit (ADIS), organised by the African Diaspora Network (ADN) in Silicon Valley, California, United States, CEO and General Partner of Fund for Africa’s Future (Future Africa), Iyinoluwa Aboyeji, said over-reliance on remittances from diaspora without adequate scale-up in human capital would limit Africa’s progress into development.
Speaking to The Guardian, he said: “Africa is on a journey, but we are not going to get there by copying models from other places or throwing money at the problem. It is going to require intellectual investment. There should be a mindset shift that you don’t need diaspora money as much as you need the knowledge transfer.”
Manufacturing vaccines in Africa (The Independent Uganda)
Africa Centres for Disease Control and Prevention (Africa CDC) has hosted lead partners of Partnerships for African Vaccine Manufacturing (PAVM) for review of vaccine manufacturing ecosystem in Africa The meeting, which took place from 9-10 March, was dedicated to identifying a clear set of annual objectives and deliverables in2023 for the Partnership for African Vaccine Manufacturing (PAVM).
The lead partners reviewed the eight bold programs outlined in the PAVM Framework for Action, prioritised a set of practical actions and defined a collaboration framework that enables implementation, effectiveness and quick results in support of African vaccine manufacturing.
“Safeguarding Africa’s health can only be achieved through our ability to manufacture the health products we need on the continent. The new public health order outlines it well in its Pillar 2: Expanded Manufacturing of Vaccines, Diagnostics, and Therapeutics to democratize access to life-saving medicines and equipment,” said Dr. Ahmed Ogwell, Acting Director of Africa CDC.
Aviation Industry Efforts Continue To Promote Intra-Africa Travel (Simple Flying)
The African Civil Aviation Commission (AFCAC) is continuing its efforts to implement the Single African Air Transport Market (SAATM), which could hold the key to a golden age of aviation development in Africa.
AFCAC Secretary General (SG) Adefunke Adeyemi said in the interview; “We are operating in various domains and engaging not just our member states but also the entire universe ecosystem of aviation to really bring that about. We have clear targets that we’re trying to achieve and reach. So in the first few months of assuming office, it was really important for us to say that, first of all, AFCAC is here for our member states, but also to engage with our partners because we cannot do it alone.”
China’s Africa Belt and Road investment drops as West spends more (Nikkei Asia)
China’s Belt and Road investment in sub-Saharan Africa fell to a new low last year, showing that increased U.S. and European spending could reduce the region’s need to rely on Beijing for funding. China’s investment in the region related to Beijing’s global infrastructure development strategy dropped 55% to $7.5 billion last year, according to a recent report from the Green Finance and Development Center at Fudan University in Shanghai.
VP Harris on pushback mission to Africa as China’s trade far outpaces US (ICIR)
AS part of a pushback strategy to China’s trade influence in sub-Saharan Africa (SSA) which far outpaced that of the United States (US) over the last decade, US Vice President, Kamala Harris, will start an official visit to the region next week.
The US annual trade value with the region has slowed over the last decade, relative to before 2010, as China’s trade had surpassed the country since 2011 and has maintained that lead in the region.
“The Biden administration has been accelerating its campaign to rebuild American influence in Africa, where it lost ground to soft influence via Chinese investment,” Bloomberg reported on Friday, March 24.
Business Programme for SA BRICS Chairship to be Outlined at Economic Indaba (the dtic)
A business programme for South Africa’s Brazil, Russia, India, China and South Africa (BRICS) chairship will be outlined at an economic indaba that will take place this week. The indaba will take place in the form of a webinar on Thursday, 30 March 2023
The aim of the indaba is to outline the business roadmap of the SA Chairship, whose climax will be the 15th BRICS Summit that will take place in August 2023. Key stakeholders such as the apex business associations, government, and civil society, will participate in the indaba.
The BRICS Economic Indaba seeks to galvanise the support of South African businesses behind the programme of the SA BRICS business Council, as well as to provide business with a broad understanding of the multitude of platforms and projects that they may be able to participate in during this Chairship.
The focal areas of discussion will include trade and investment opportunities with BRICS markets; key interventions being tabled at sector-based working groups; and activities lined up as a build-up to the BRICS Summit in August.
Transforming agrifood systems is essential to adapt to human-caused climate change and reduce greenhouse gas emissions, the Food and Agriculture Organization of the United Nations (FAO) said today in the face of the latest report published by the Intergovernmental Panel on Climate Change (IPCC).
The Synthesis Report, the last of the Sixth Assessment report cycle, done in a collaborative effort between governments and scientists from all over the world, confirms that human activities, mainly through emissions of greenhouse gases, have unequivocally caused global warming. These include unsustainable energy use, land use and land-use change, as well as consumption and production patterns.
The report underlines that 22% of global greenhouse gas emissions right now come from agriculture, forestry, and land use.
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Private energy sector participation could improve SA’s growth outlook – IMF (SAnews)
The International Monetary Fund (IMF) believes that South Africa’s implementation of structural reforms, combined with fiscal consolidation, could help boost private investment, employment and growth.
IMF officials held a series of meetings with South Africa this month as part of their routine economic surveillance function, as prescribed in the IMF’s Articles of Agreement.
The IMF said restoring energy security will require attracting private sector participation in the electricity market and addressing Eskom’s operational and financial deficiencies.
“Similarly, stronger-than-expected private sector participation in the energy sector could improve the growth outlook,” National Treasury said in a statement following the meetings.
The IMF noted that the country’s large external asset position, diversified economy, sophisticated financial system, and flexible exchange rate regime are sources of strength, supported by the Reserve Bank’s pro-active monetary policy, have kept inflation expectations anchored.
In addition, the IMF recognised steps taken to improve third-party access to the country’s ports and freight network.
“Nevertheless, [the IMF highlighted] various downside risks to South Africa’s economic outlook, including external risks that could emanate from a deeper and more protracted global slowdown, further weakening of commodity prices and a shift in global investors’ sentiment away from emerging markets.”
Uganda: Export earnings grow by 38.9% (Monitor)
Export earnings grew by 38.9 percent in January compared to the same period last year, largely due to higher returns from commodities such as maize, coffee, tea and tobacco.
According to the Ministry of Finance performance of the economy report, released at the weekend, during January 2022, earnings from maize exports stood at $6.76m but grew to $35.01m in January 2023 due to “easing of non-tariff barriers in Kenya and the opening of the Uganda-Rwanda border”.
Similarly, earnings from coffee increased by 13.1 percent due to growth in exports to meet the reduced supply from major exporting countries such as Brazil and Vietnam.
Tunisia: textile-clothing industry export value up 16.69% until end February 2023 (TAP)
Exports of the textile-clothing sector have increased by 16.69% in dinars to TND 1,698.08 million and by 13.93% in euros (€509.9 million) during the first two months of 2023, compared to the first two months of 2022.
However, according to the latest issue of the CETTEX Economic Letter, these exports have decreased by 8.85% in volume.
As for the imports of the textile-clothing sector, they posted, during the same period, a growth of 2.26% in dinar reaching TND 1,128.27 million and a decrease of 0.15% in Euro (€338.8 million) and 7.07% in volume.
For the first two months of 2023, the trade balance saw a progression of 18.6 points compared to the two months of 2022 (150.5% against 131.9%).
Mozambique: Scale Importers Suspend Trips to South Africa (allAfrica)
The Mozambican Association of small scale importers, known as “mukheristas’, has decided to suspend trips to South Africa to prevent possible violence against Mozambican trucks during the current protests. According to the president of the association, Sudekar Novela, quoted by the Maputo daily “Noticias’, the action aims to safeguard the physical integrity of operators in the sector and avoid possible damage caused by the looting of goods.
In recent days, the price of fresh products in Zimpeto has fluctuated as a result, on the one hand, of the flooding of crops in the production fields and, on the other, of rising acquisition costs in South Africa.
Kibirizi port sees record cargo boom (Daily News)
KIBIRIZI port in Kigoma Region is witnessing record cargo volumes after undergoing major facelift as trade between Tanzania and land-linked DR Congo, Burundi and Zambia keeps mushrooming.
The refurbished terminal, located some 20 kilometres from the major Kigoma Port, handled 103,188 metric tonnes of cargo in 2021/2022 financial year, which is 193 per cent of the target.
Kibirizi is the second largest port in Kigoma Region after the port of Kigoma, which is the general cargo terminal. The other port is Ujiji.
“Kibirizi port is popular for handling modern vessels with the capacity of 30 tonnes, which transport various goods for commercial and domestic uses heading to neighbouring countries of DR Congo and Burundi,” Lake Tanganyika Ports Manager Mr Edward Mabula told the ‘Daily News’.
Mr Mabula said TPA is looking to attract more cargo and customers at Kibirizi port and has been waging campaigns, including visiting potential customers to use the Central Corridor which is cost effective.
Kenya closes porous routes on Uganda border over smuggling (The East African)
Over the weekend, Nairobi closed the Kenya-Uganda border in Busia District, which includes 57 kilometres of porous borders and over 200 illegal routes stretching from Lake Victoria in Majanji to River Malaba in Buteba Sub-County.
Subsequently, the usually busy border outpost of Sofia and Marachi, which thrived on illicit trade across the two borders, remains deserted as Kenya maintained a huge security presence to curtail illegal border movement.
Kenya’s Busia County Commissioner Ruto Kipchumba explained why they had deployed a multi-sectoral team of security personnel along all the porous border routes.
“The deployment is meant to curtail illicit activities of smuggling which were causing huge revenue losses to the Kenyan government and putting the lives of their nationals at risk due to consumption of substandard goods that were being smuggled into the country,” he said.
Local Content Bill suffers another setback (New Vision)
Parliament has deferred debate on the National Local Content Bill, 2022, pending harmonization between the bill’s sponsor, Patrick Oshabe, Attorney General (AG) Kiryowa Kiwanuka, and the finance committee.
On March 1, 2023, Speaker Anita Among told the House that the President had returned the Bill for reconsideration.
“One of the issues the Attorney General raised is that the drafting is not compliant with basic standards of drafting and that he was not consulted. We do not want him to come here and frustrate the member,” Leader of the Opposition Mathias Mpuuga said.
The committee scrutinized clause 4 of the bill on preferential treatment to Ugandan goods, works, and services, which the president said is contrary to the East African Community Protocol on the free movement of goods and services and the East African Monetary Union.
“When the local content laws are being harmonized, only existing laws can be harmonized.” If Uganda has no existing law at the time of harmonization, it will have to recognize the local content laws for other jurisdictions, but cannot introduce a local content law at that time,” reads the committee report.
Kenya expects trade partnership deal with US in a year, minister says (Reuters)
Kenya expects to finish talks for a trade and investment deal with the United States by the end of this year and to sign the agreement by April 2024, Trade Minister Moses Kuria said. Kenya is one of the United States’ top trading partners in Africa and has been a major beneficiary of the Africa Growth and Opportunity Act (AGOA), a preferential trade programme that will expire in 2025.
The deal would not address tariffs but would complement AGOA and cushion the blow for Kenya if the programme is not extended, Kuria told Reuters in an interview in London on Wednesday after meeting British trade officials.
“It is full steam ahead for both the Kenyan and U.S. sides,” Kuria said. “By the close of this year, we will have finalised the actual negotiations to pave way for a signing probably by April next year.”
Kenya’s trade lobby launches mobile app to boost women businesses in East Africa (The Star)
The Kenya National Chamber of Commerce and Industry (KNCCI), a trade lobby, on Wednesday launched a mobile app dubbed iSOKO to boost women-owned businesses in East Africa. Richard Ngatia, president of KNCCI, told journalists in Nairobi, the capital of Kenya, that the digital platform will help women entrepreneurs connect with potential buyers, allowing them to reach a wider audience and sell their products more easily.
“This app will have a significant impact on the lives of women traders, by increasing their income, improving their bargaining power, and promoting their economic independence,” Ngatia said.
Belgium royal couple visits South Africa to cement trade ties (Sunday World)
King Phillippe and Queen Mathilde of Belgium are in the country for a five-day visit, their first state to an African country since 1979.
Belgium ambassador to South Africa Paul Jansen said: “The state visit is a reflection of the strength of the relationship that exists between Belgium and South Africa.
Belgium is listed as the fifth-largest exporter and third-largest European Union importer of goods to and from South Africa.
Chemical products, machinery and minerals are among the chief exports of Belgium to South Africa. The country’s imports from South Africa include precious stones, transport equipment and chemical products.
“South Africa is an attractive investment destination for Belgian companies and an alluring business and leisure tourism destination,” Jansen said, noting that South Africa is the largest economy on the African continent with significant growth potential. “It is no surprise that several Belgian companies have recently made significant South African investments and are in partnership with South African companies in sectors as diverse as food processing and mining.”
Nigeria’s trade relationship with China takes an $80 million dip (Business Insider Africa)
The Chinese Chamber of Commerce delegation to the Executive Secretary of the Nigerian Investment Promotion Commission was led by Wang Yingqi, Minister and Counselor for Economic and Commercial Affairs at the Embassy of the People’s Republic of China. He noted that the trade record was $219 million in 2022 and $300 million in 2021.
“Nigeria and China have maintained a long-standing trade relationship which is why the visit was important to sought ways of improving bilateral relations as trade value alone in last year according to our statistics the total investment from China’s companies to Nigeria is around $219m and in the past year, the figure is also around $300m.”
He added that the Chinese government has invested in the Lekki Free Trade Zone as a result of the Public Private Partnership with the federal government and the Lagos State Government.
UK Trade Commissioner: Morocco is gateway to Africa & key business partner (The North Africa Post)
UK trade commissioner for Africa John Humphrey has described Morocco “a gateway to Africa and a key business partner for the United Kingdom”.
Commenting his meeting held Tuesday in London with Moroccan Ambassador to the UK Hakim Hajoui, John Humphrey said, in his twitter account, that talks with the Moroccan ambassador focused on ways of strengthening further the £2.9 billion trading relationship, specifically in education, technology and innovation.
Following its exit from the European Union, UK signed with Morocco and several other countries trade agreements to ensure continuity of trade exchanges, services, and economic cooperation ties.
To promote UK and Moroccan trade, UK export finance agency (UKEF) had announced in 2022 a £4 billion funding for overseas buyers of UK goods and services to strengthen the trade relationship between the UK and Morocco.
TZ, India trade volume notches using own currencies (Daily News)
TRADE volume between Tanzania and India stands at 4.5billion US dollars (about10.4tri/-) by early March this year as the two countries agreed to use their own currencies while doing trade. This was said by the Indian High Commissioner to Tanzania Binaya Pradhan, who noted the two trading partners would be using own currencies in trading.
“Tanzania and India will use their own currencies in transactions, which is part of a bilateral trade settlement arrangement,” revealed the envoy, at a business symposium held here on Saturday evening.
“The move will boost bilateral trade between Tanzania and India as we envision potential growth of our trade,” he explained.
Uganda ready to trade under AfCFTA Guided Trade Initiative (The New Times)
Ugandan officials have confirmed that they too are ready to follow in the footpath of their East African Community (EAC) counterparts, Kenya and Rwanda, and start trading under the AfCFTA Guided Trade Initiative which was officially launched in October 2022.
The initiative launched in July 2022, sought to test the environmental, legal and trade policy basis for intra-African trade in a pilot phase that involved eight countries namely, Cameroon, Egypt, Ghana, Kenya, Mauritius, Tunisia, Tanzania and Rwanda.
During a meeting in Kampala, Uganda, on Tuesday, March 21, the East Africa Business Council (EABC) Vice Chairperson, Simon Kaheru, said: “As Ugandan private sector we are ready to trade under the AfCFTA Guided Trade Initiative and follow our counterparts from Rwanda and Kenya who have already started trading through the agreement.”
Angola reiterates commitment to Continental Trade Zone (ANGOP)
The secretary of State for Trade, Amadeu Leitão Nunes, Monday in Luanda reiterated Angola’s engagement in the implementation of the African Continental Free Trade Area (ACFTA).
Speaking at the opening of the 9th Meeting of the Dispute Settlement Body of the ACFTA, he stressed that the process of its implementation is challenging, especially for those states with greater vulnerabilities in terms of internal structures.
Regarding the meeting, he stressed that the Protocol on Dispute Settlement, a mechanism established by Article 20 of the Framework Agreement, appears as a fundamental instrument to ensure the necessary legal security and predictability.
Amadeu Leitão Nunes added that these are essential aspects for the decision-making of economic operators and investors, in relation to the use of a given market.
Nigeria needs corporate governance to unlock AfCFTA gains – IoD (Businessday)
The Institute of Directors Nigeria (IoD) says strict adherence to corporate governance is necessary for the country to enjoy the benefits that the Africa Continental Free Trade Area (AfCFTA) has to offer.
The president of IoD, Ije Jidenma made this promise at a press conference in Lagos where she announced a year-long lineup of events and activities to mark its 40th anniversary which would be flagged off by a courtesy visit to President Muhammadu Buhari on March 16, 2023.
“With the coming of African Continental Free Trade Area’s agreement, Nigeria needs good directors to be able to navigate the terrain at the continental level,” Jidenma explained.
Gambia urges ECOWAS to accelerate regional infrastructure (The Point)
Speaking at a four-day TMC/ECOSHAM meeting on the validation of the draft ECOWAS standards relating to three regional value chains (mango, cassava and information and communication technologies), Hassan Gaye, DPS Ministry of Trade said: “It is therefore necessary for ECOWAS Commission and its member states to make available to our enterprises and conformity assessment bodies, national and regional standards in order to promote technology transfer, improve the production systems and the competitiveness of our enterprises.”
The development of global value chains, DPS Gaye said, has become a dominant component to promote trade and investment. “The benefits of developing value chains are significant and can be measured in terms of productivity improvements, job creation and poverty reduction.”
“This regional dynamic initiated by ECOWAS Commission must be supported with innovative policies to strengthen the activities of our local production units in order to transform them into medium-sized enterprises as means to bridge the gap between them and multinational companies established in the region.”
Without good governance, development in Africa is dead on arrival, says Mohamed Ibn Chambas (UNECA)
Mohamed Ibn Chambas, the African Union High Representative for Silencing the Guns campaign, has emphasized the vital role of good governance in achieving sustainable development and transformation across Africa.
Speaking at the 2023 Adebayo Adedeji Lecture on the theme of “Governance, Social Contract, and Economic Development in Africa: Looking Back, Projecting into the future” during the ECA Conference of Ministers in Addis Ababa, Ethiopia, Mr. Chambas stated that without good governance, development in Africa is dead on arrival.”
Mr. Chambas highlighted the significance of transparent, accountable, and responsive governments in Africa that play a crucial role in unlocking the continent’s potential for investment and sustainable growth. He emphasized the importance of social contracts between governments and citizens, which is vital for fostering trust and promoting social cohesion. Collaboration between governments, civil society organizations and the private sector is also crucial to achieving the common goal of good governance.
A united Africa is our best chance to weather the storms and create a prosperous Africa for the future, he said, calling for the facilitation of the free movement of persons, goods and services in accompanying the pan-African initiative of the African Continental Free Trade Area (AfCFTA).
Africa must urgently invest in economic recovery, Finance Ministers Urge (UNECA)
Africa should deploy innovative resource mobilization and accelerate economic recovery from multiple crises which have eroded two decades of development gains and increased poverty, Ministers of Finance have urged.
In a Ministerial Statement adopted at the 55th session of the Conference of African Ministers of Finance, Planning and Economic Development, in Addis Ababa, Ethiopia, ministers reiterated the urgency of transforming Africa’s economies and driving industrialization. They underscored the need to expedite economic recovery in Africa which is likely to miss many of the Sustainable Development Goals (SDGs).
Noting that the COVID-19 pandemic, the war in Ukraine and climate change will hinder Africa’s efforts to achieve the SDGs and Agenda 2063, the Ministers said the triple crises have disrupted food and energy markets, exacerbated food insecurity and caused high inflation rates which have pushed millions of Africans into poverty and economic hardship.
The Ministers, therefore, acknowledged the need to stimulate economic recovery and to protect vulnerable populations against soaring inflation – which was forecast to reach 12.4 per cent in Africa in 2023. Rising interest rates, and the tightening of monetary policy by central banks to combat inflation have contributed to the worsening of the already limited fiscal space, the Ministers statement said.
Proposals Made For Establishing A Joint Russia-African Bank (Russia Briefing News)
Burkina Faso, in West Africa, a member of the African Continental Free Trade Area (AfCFTA), has suggested creating a joint bank with Russia to facilitate financial transactions between the two countries and promote trade, according to Ousmane Bougouma, the speaker of the countries Transitional Legislative Assembly stated on Wednesday (March 22).
“I think that when it comes to strengthening cooperation with Russia in key areas of the economy, it is very important that we explore the possibility of creating a joint bank between Russia and Africa with a branch in Burkina Faso,” he said.
The establishment of a joint financial institution will pave the way for broader cooperation between Russia and the West African country, Bougouma said, adding that it would be “useful” for mutual trade and investment.
Egypt Becomes A Member Of The BRICS New Development Bank (Silk Road Briefing)
In a sure-fire move that can be expected to usher in Egypt as a full member of the BRICS grouping, Cairo has taken an equity position within the New Development Bank (NDB). Previous equity was divided equally among the initial members: Brazil, Russia, India, China, and South Africa. It makes Egypt the first new member of the proposed expanded BRICS+ along with Bangladesh and the UAE.
The NBD approved Egypt’s accession in December 2021, while in September 2021 a similar decision was made regarding the United Arab Emirates (UAE), Uruguay and Bangladesh. With the exception of Uruguay, they all became members of the bank this month after jumping through the necessary hoops.
Global trade slows, but ‘green goods’ grow (UNCTAD)
Global trade was worth a record $32 trillion in 2022, but amid deteriorating economic conditions and rising uncertainties, growth turned negative in the last half of the year and is set to stagnate in the first half of 2023. The silver lining was the strong performance of trade in “green goods”, whose growth held strong throughout the year, says UNCTAD’s latest Global Trade Update, published on 23 March.
Green goods, also called “environmentally friendly goods”, refer to products that are designed to use fewer resources or emit less pollution than their traditional counterparts.
Defying the downward trend, trade in such goods grew by about 4% in the second half of the year. Their combined value hit a record $1.9 trillion in 2022, adding more than $100 billion compared to 2021.
DG Okonjo-Iweala: Trade finance is lifeblood for African small businesses (WTO)
DG Okonjo-Iweala emphasized the importance of trade finance for boosting trade growth in Africa. “Trade finance is the lifeblood of trade. Access to trade finance is key to a firm’s competitiveness in international markets,” she said.
She pointed out the significant shortfall in financing for small traders in Africa. According to the African Development Bank’s trade finance survey, the continent rejects about USD 80 billion worth of requests for trade finance annually.
DG Okonjo-Iweala outlined the key findings of the WTO-IFC joint study on trade finance gaps in the four largest economies of the Economic Community of West African States (ECOWAS) — Côte d’Ivoire, Ghana, Nigeria and Senegal - issued in 2022. This revealed that if ECOWAS countries raised the share of trade supported by trade finance to the average African level of 40%, they could gain an extra 8% in trade flows annually. In ten years, this would total USD 140 billion in additional trade.
UN Forum Explores Ways to Enable Transformation in Development Cooperation (IISD)
The President of the UN Economic and Social Council (ECOSOC) convened the eighth meeting of the UN Development Cooperation Forum (DCF), kicking off this year’s SDG financing discussions. The Forum focused on fostering high-impact development in the areas of climate resilience, social protection, and digital transformation while leaving no one behind.
Held under the theme, ‘Prioritizing the Lives and Livelihoods of the Most Vulnerable Through Risk-informed Development Cooperation,’ the Forum met in the ECOSOC Chamber at UN Headquarters in New York, US, from 14-15 March 2023. Recognizing that more than 1.2 billion people are living in
The United Kingdom has adopted a new Developing Countries Trading Scheme (DCTS) which comprises three different regimes – one for least developed countries (LDCs), one for non-LDC economically vulnerable low-income and lower-middle-income countries, and one for other low-income and lower-middle-income countries. Compared to the previous scheme, which largely mirrored the European Union’s, the DCTS makes it easier for an LDC to accede to the intermediary “Enhanced Preferences” scheme when it graduates. For most countries, graduation from the LDC category will have little impact on trade with the United Kingdom, and less impact than it might have had under the previous regime. Impacts will be greater for countries whose main exports are not covered by Enhanced Preferences, such as certain agricultural products, or whose exporters are unable to comply with the more stringent rules of origin than those applied to LDCs.
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On Tuesday 21 March, Kenyan Cabinet Secretary for Investments, Trade and Industry, Moses Kuria, met UK Minister for International Trade Nigel Huddleston in London at the first-ever UK-Kenya Economic Partnership Council Meeting.
Both parties agreed to accelerate work to remove barriers affecting bilateral trade and investment, working with our respective public and private sectors, and discussed the good progress made on the £3.5 billion of green investment deals which UK Prime Minister Rishi Sunak and President William Ruto agreed to fast track at COP27.
The Economic Partnership Council meets once every two years as part of the UK-Kenya Economic Partnership Agreement (EPA), which came into force in March 2021.
The agreement ensures that all companies operating in Kenya, including British businesses, can continue to benefit from duty-free access to the UK market - saving exporters over KES 1.5bn (£10m) every year in duties on products such as green beans and cut flowers.
The Board of Directors of the African Development Bank Group has approved a $30 million Trade & SME Finance Facility for Family bank Limited (FBL) in Kenya. The facility is expected to boost intra-Africa trade, promote regional integration and contribute to the reduction of the trade & SME finance gap in the East African nation.
The Facility is expected to boost intra-Africa trade, promote regional integration, and contribute to the reduction of the trade & SME finance gap in Kenya, by mobilizing significant financial resources for SMEs and local enterprises. This will enhance and deepen value chains, and diversify productive capacity, ultimately stimulating growth in Kenya.
The Bank will provide up to $10 million to support FBL’s short-term trade finance activities of SME’s and local corporates, an up to $10 million Transaction Guarantee facility to support confirmation of trade finance transactions of FBL and up to $10 million targeted Line of Credit to support medium-term financing for SMEs in the health, renewable energy, and
Kenya tea exporters ride on weak shilling, mint fortune at auction (The East African)
While importers in the East African region have been struggling with a dollar shortage that has pushed up the cost of basic commodities, Kenya’s tea exporters have been among the beneficiaries of the country’s a weak shilling, earning more than $1.32 billion (KSh171.7 billion) from the commodity.
The Tea Board of Kenya (TBK) said the country reported an increase in shipments to $1.07 billion (KSh139.21 billon) last year. And due to a weak shilling, the average price of the leaves at the Mombasa tea auction jumped 18.6 percent to an average of $2.49 (KSh324) per kilogram last year.
Increase in export earnings was attributed to depreciation of the Kenya Shilling against the dollar as well as improved prices.
IMF says Somalia to qualify for full debt relief by year end (The East African)
Somalia will be eligible for full debt relief from the International Monetary Fund (IMF) and other multilateral lenders by the end of this year as reforms to boost revenue collection and fiscal transparency begin to bear fruit, the lender has said. Somalia reached the decision point for IMF debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative in March 2020, which saw its debt stock reduce to $3.7 billion from the $5.2 billion it had accumulated by December 2018.
The full debt relief will reduce Somalia’s debt to $557 million, about 10 percent of its gross domestic product, allowing it headroom to address multiple shocks affecting its economic growth and development.
Although it is already in debt distress, the Horn of African nation cannot yet access full debt relief from the IMF until it shows commitment to structural reforms that will ensure “public resources are used effectively and to the benefit of all the Somali people, and efforts to promote stronger economic growth that will lead to more jobs”.
Despite Weaker Naira, Nigeria’s Foreign Trade Surplus Rises By 162% (Leadership News)
Nigeria recorded significant improvement in foreign trade in 2022 with export earnings outweighing import bills by N1.2 trillion, resulting in foreign trade surplus of 162 per cent, despite the weaker value of the Naira during the year. data released by the National Bureau of Statistics (NBS) has shown that minerals export was the major item that pushed Nigeria goods trade surplus to N1.2 trillion in 2022 as export bills (N26.8 trillion) outweighed import earnings (N25.6 trillion) for the first time since the pre-COVID year (N2.23 trillion in 2019).
Nevertheless, the NBS noted that the surplus in 2022 represents an improvement of over 162 percent compared to the 2021 goods trade deficit of N1.94 trillion.
The dollar is no more relevant in trade between India and Tanzania (Business Insider Africa)
Tanzania and India are able to conduct business using their respective currencies, the Tanzanian shilling and the Indian rupee, thanks to a bilateral trade settlement agreement. According to data from the Indian High Commission in Dar es Salaam, the value of trade between the two countries was $4.5 billion (roughly Sh10.4 trillion) in the year ending March 2022. India is one of Tanzania’s largest trading partners.
According to Binaya Pradhan, the Indian High Commissioner to Tanzania, between April 2021 and March 2022, India’s exports to Tanzania totaled $2.3 billion (or about Sh5.3 trillion), while its imports from the East African country were estimated to be $2.2 billion (about Sh5.1 trillion).
Zambia, DRC prepare for battery electric vehicle value chain (New Business Ethiopia)
Zambia and Democratic Congo (DRC), among the top African countries with huge mineral resources, are set to develop battery electric vehicle value chain opening special economic zones.
This is indicated by Mr. Antonio Pedro, Acting Executive Secretary of the United Nations Economic Commission for Africa (UNECA) who opened African economy misters’ meetings in Addis Ababa, Ethiopia this morning.
“This value chain, with the creation of the special economic zone, could unlock a market worth $7.7 trillion by 2025 and $46 trillion by 2050. The Secretary-General has called for a review of the Global Financial Architecture and for a SDG Stimulus of at least $500 billion per year in financing for sustainable development,” Antonio said, mentioning that carbon credit markets could bring in a whopping $82 billion for Africa.
Intra-Africa Trade: Equatorial Guinea and Cameroon ink a new oil deal (Garowe Online)
Equatorial Guinea president Teodoro Obiang Nguema Mbasogo and his Cameroon counterpart Paul Biya, have signed a bilateral treaty that would see the two West African countries cooperate on cross-border oil and gas development and monetization. The agreement was signed during the heads of state summit of the Economic and Monetary Community of Central Africa (CEMAC) countries held in Cameroon last week and is set to bring with it new opportunities for oilfield development and regional energy security.
The African Energy Chamber (AEC), expressed that the agreement will unlock a new era of cooperation, with the agreement serving as a blueprint for other African countries looking at strengthening knowledge sharing, skills and technology transfer, infrastructure development, and local content, all on the back of cross-border oil and gas maximization.
President Ruto wants EAC treaty amended to reflect current status (The East African)
Kenyan President William Ruto wants the treaty establishing the East African Community (EAC) amended to reflect current status of the bloc including its membership.
Speaker of the East African Legislative Assembly (EALA) Mr Joseph Nkakirutimana says the bloc must adapt to the needs of new members including language needs as well as openness to admit new members without restrictions used more than 24 years ago.
When it was formed in 1999, the EAC was recreating the collapsed bloc in 1977 where Kenya, Uganda and Tanzania were members. It later expanded to include Rwanda as well as Burundi in 2007 and later South Sudan in 2016 before the Democratic Republic of Congo (DRC) joined last year.
“Somalia is likely to join after an assessment is completed. There is also a possibility that Ethiopia and Sudan could join the EAC,” the president said at state house, Nairobi.
ECA calls for Africa’s economic growth to be inclusive to reduce widespread poverty (UNECA)
While the world was still fighting the COVID-19 pandemic, the war in Ukraine broke out in early 2022. The impact of the two shocks has been exacerbated by the higher frequency and intensity of natural disasters. The UN Economic Commission for Africa’s Deputy Executive Secretary and Chief Economist Hanan Morsi said that the three overlapping crises have pushed more Africans into extreme poverty and resulted in increased inequalities and vulnerabilities on the continent.
“Today, 546 million people are still living in poverty, which is an increase of 74 per cent since 1990”, stressed Morsi. “Global shocks have ripple effects on the poor in Africa through inflation, which, in 2022, stood at 12.3 per cent, which was much higher than the world average of 6.7 per cent”.
According to recent research, the 10 African countries with the highest levels of poverty in Africa are Burundi, Somalia, Madagascar, South Sudan, the Central African Republic, Malawi, the Democratic Republic of the Congo, Guinea-Bissau, Mozambique and Zambia, in each of which between 60 per cent and 82 per cent of the population is poor
COM2023 calls on member States to harness AfCFTA for Economic Resilience and Inclusion (UNECA)
Panelists at a High-level round-table discussion at the 55th Session of the Conference of African Ministers of Finance, Planning and Economic Development formulated recommendations on how the African Continental Free Trade Area can be leveraged to foster economic resilience, inclusion and recovery.
Chaired by the Director of the ECA Regional Integration and Trade Division, Stephen Karingi, the session, which focused on harnessing the AfCFTA for economic resilience and inclusion made recommendations on how the AfCFTA can be leveraged to foster recovery and transformation in Africa, while also reducing inequality and vulnerability.
Focusing on the potential for the AfCFTA in reducing vulnerabilities, Ms. Treasure Maphanga, Chief Operating Officer, AeTrade Group, Rwanda, told the panel that her organization is a social Enterprise working with the AfCFTA Secretariat to accompany them in the implementation of the agreement. “AeTrade Group has set up a trading platform working with women in businesses and promoting trade”, said Ms. Treasure Maphanga. “What is missing is to set goals, such as how many jobs we are going to create. We need an approach of identifying SMEs, especially women and youth-led who are more vulnerable.”
Africa’s logistics will deliver results as free trade agreement kicks in (WEF)
African logistics have struggled to cater to the country’s growing population and dynamic private sector for far too long. New research suggests that is about to change — and the benefits for the continent’s wider economy could be transformative.
That shift is thanks to the African Continental Free Trade Area (AfCFTA) agreement, which introduces frictionless trade between its African signatories. Signed in February 2021 and now coming into force, AfCFTA is a catalyst for rapid investment and expansion of the continent’s nascent logistics sector, according to a report by the World Economic Forum: AfCFTA: A New Era for Global Business and Investment in Africa.
Improving energy access key to meeting development goals in Africa (UNCTAD)
Although access to energy has increased in sub-Saharan Africa in recent years, it remains low, as more than 50% of the region’s population still lacks access to electricity.
This low access to energy has implications on health, education, poverty reduction and sustainable development, says an UNCTAD report entitled ”Commodities at a glance: Special issue on access to energy in sub-Saharan Africa”, published on 21 March.
“Access to a reliable and quality energy supply is vital to the economic development of any country,” the report says. “It drives industrialization, boosts productivity and economic growth, spurs human development, and is crucial to achieve almost all of the United Nations Sustainable Development Goals (SDGs).”
Why food is the new focus for China’s ties with Africa (South China Morning Post)
China is importing more food products such as avocados, cashews, sesame seeds and chilli peppers from Africa, as agriculture emerges as the new focus of Beijing’s engagement with the continent.
In the first two months of this year, Shanghai ports handled more than 40,000 tonnes of African agricultural products worth more than US$100 million, according to Shanghai Customs.
By March 3, a total of 1,845 tonnes of African sesame had been imported through Shanghai’s Waigaoqiao Port – 4.3 times more than in the same period last year, official data showed.
Africa produces about 65 per cent of the world’s sesame, and Chinese officials say African countries including Mali, Togo, Mozambique, Niger, Tanzania, Ethiopia and Uganda account for 90 per cent of China’s imports of the product.
The State Duma (Russian parliament) in Moscow on 19-20 March holds the II International Russia-Africa Parliamentary Conference aimed at strengthening and developing Russia’s relations with the states of the African continent. Russian President Vladimir Putin addressed the plenary session. He noted that the partnership between Russia and Africa has gained additional dynamics in recent years.
“We are ready to shape the global agenda together, work together to strengthen fair and equitable interstate relations, improve mechanisms of mutually beneficial economic cooperation,” said the head of state.
A more energetic transition to national currencies in financial payments and the establishment of new transport and logistics chains will contribute to the development of reciprocal exchanges. According to the Russian leader, additional opportunities are offered by the process of establishment of the African continental free trade zone, which began in 2021 and is expected to become a continental market with a combined GDP of more than $3 trillion.
Africa and Global Economic Trends – February 2023 (AfDB)
Economic growth in advanced countries continued with a positive growth trajectory in 2022, following strong post covid-19 recovery programs in 2021. However, on a quarterly basis, lower growth rates were recorded in the third and fourth quarter of 2022 compared to the preceding quarter for all the selected economies.
Emerging economies recorded stronger growth, compared to the advanced economies, in the third and fourth quarters of 2022 except in Russia where the economy contracted in the second and third quarters of 2022.
All African countries recorded successive economic growth, of varying magnitudes, on a quarterly basis in 2022, despite incidents of economic contraction in Burkina Faso and Equatorial Guinea during the first and second quarter respectively. Comparing the third quarter of 2022 with the corresponding period of 2021, nine African countries recorded higher economic growth rates, whereas growth was weaker in 15 countries over the same period. Cabo Verde, Seychelles, Rwanda, Uganda and Mauritius were among the countries with the highest quarterly GDP growth rates in the third quarter of 2022, with the rates ranging between 17.1 percent in Cabo Verde and 7.4 percent in Mauritius.
As we gather here, the [African] region is facing a brutal financing squeeze. To be sure, this is not unique to African countries. But this region is the one that can least afford the implications of this squeeze, given Africa’s much-higher level of poverty and remaining development gaps. Africa is where I think much of the incremental global demand for investment and consumption will happen in the coming years—if only because the region is where all incremental global population growth is set to happen. A process well in-train.
Trade Perspectives by DDG Zhang (WTO)
International trade offers LDCs a proven route towards sustainable development. It can contribute significantly to building more resilient economies and lifting millions out of poverty in LDCs. This is why trade is a key pillar of the Doha Programme of Action, which maps out commitments between LDCs and their development partners in 2022-31.
Commitments to help LDCs reap the benefits of trade – including better quality jobs, stronger economic growth and increased productivity – are timely. LDCs’ share of global trade has stagnated at less than 1% in recent years. The Doha Programme of Action sets the ambitious target of doubling agriculture sectors. The facilities will also support women-owned businesses.
Declining coal prices reflect a reshaping of global energy trade (World Bank Blog)
Coal prices have been retreating from their highs in 2022 but they remain well above the 2017-2021 average. Global coal consumption levels reached an all-time high in 2022, led by India and China. On the supply side, increased exports by countries such as South Africa and Colombia—whose combined share in total European imports has been 35% since August 2022—have partially offset the reduction of Russian exports to Europe. Prices are expected to be lower in 2023 (on average) compared to 2022 but remain high by historical standards. Possible supply redirection from the ongoing Russian invasion of Ukraine and a faster-than-expected pace of China’s reopening could impact the outlook of falling prices.
Reduced Russian coal exports to Europe were balanced by increases from Colombia and South Africa. Exports from South Africa to Europe experienced an almost six-fold increase, while exports from the U.S. have remained broadly stable in 2022 (although some were redirected to Europe). Russian exports, which increased overall, have been redirected to China and India, following the EU ban of Russian coal in 2022Q3. Indonesian exports rose 14% in 2022 and reached an all-time high despite two temporary export bans.
Solving the water and sanitation crisis: How technology and innovation can help (UNCTAD)
This year’s World Water Day on 23 March focuses on accelerating change to solve the water and sanitation crisis. About 2 billion people lack safe drinking water, according to UN-Water, and about 5.4 billion don’t have access to safely managed sanitation services. A recent UNCTAD report emphasizes the role of science, technology and innovation (STI) in tackling this crisis.
It says frontier technologies such as artificial intelligence, big data and Internet of Things help in monitoring water and sanitation infrastructure and accelerate progress towards UN Sustainable Development Goal (SDG) 6 on “clean water and sanitation for all”.
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RC: How to boost Tanzania’s exports to India (The Citizen)
Local exporters have been advised to add value to their products instead of selling them in raw form. Raw exports not only fetched lower prices in the international markets but were vulnerable to unpredictability of price fluctuations. “The more we trade raw items, the more vulnerable we remain to the unpredictability of price fluctuations” said the Arusha Regional Commissioner John Mongella.
He raised the concern during a business symposium organised by Tanzania India Business Forum (TIBF) in collaboration with other business stakeholders here on Saturday.
19 new regulations on electrical appliances import, manufacture takes effect Nov 2 (Ghanaian Times)
The Energy Commission will from effective November 2, 2023, begin enforcement of the 19 new regulations on the importation and manufacture of electrical appliances and renewable energy products in the country. This is in line with its mandate under Act 541 passed by Parliament to prevent 20 electrical appliances that do not meet the minimum energy-efficiency performance standard (MEPS) requirements from entering into the country.
The Director of Renewable Energy and Energy Efficiency at the Commission, Mr Kofi Agyarko said the new regulations were to promote effective use and conservative of energy in the country and mitigate related climate change. According to him, the move followed a year’s grace period given to the importers and dealers after the law was passed to transition to dealing in products that mee
Trade minister plans to reduce cost of goods clearance at ports (The Point)
He also said his ministry had engaged shipping agencies and other stakeholders to address price hikes in the country.
“We conducted meetings with shipping and clearing agencies alongside other relevant stakeholders within the value chain with a view to discussing and identifying measures to minimize cost of clearance at the ports,” Minister Joof said.
“One of the key outcomes of these meetings was the identification and scheme lining of services provided by shipping agencies including the terminal and line point handling charges. In this regard the ministry wrote to shipping agencies to streamline their charges based on services they provide to conform to international standards.”
Nigeria pursues a new air cargo roadmap (Africa Aviation News)
Nigerian government is accelerating the country’s air cargo competitiveness by setting up specific committees involving leaders from public and private enterprises to build and operate airports with modern cargo infrastructure.
In a bid to bolster air cargo traffic and infrastructure in Nigeria, the Federal Airports Authority of Nigeria (FAAN) recently set up committees to tackle the major barriers that have continued to retard air cargo development in Nigeria. Experts believe several drawbacks in Nigeria’s air cargo value-chain have put the country at a potentially disadvantaged position in Africa’s unfolding free trade market called the African Continental Free Trade Area (AfCFTA).
The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Capt. Rabiu Yadudu, emphasised the importance of the committees, saying Nigeria should now focus on strategic air cargo development to address deep-rooted challenges that resulted in Nigeria still importing more than it exports. Air cargo has remained significantly low compared to cargo carried by road transportation in Nigeria despite air cargo potentials in the country.
Trade in services to begin under AfCFTA Guided Trade Initiative (The New Times)
Trading of services across the continent will begin in the next phase of the Guided Trade Initiative this year, said Wamkele Mene, Secretary General of the African Continental Free Trade Area (AfCFTA). The initiative launched in July 2022, sought to test the environmental, legal and trade policy basis for intra-African trade in a pilot phase that involved eight countries namely, Cameroon, Egypt, Ghana, Kenya, Mauritius, Tunisia, Tanzania and Rwanda.
According to Mene, the exercise was a success and about 96 value-added products were traded among selected countries. They include air conditioners manufactured in Egypt, Ceramic tiles from Ghana, coffee from Rwanda, among others.
As the Secretariat looks to expand the number of participating countries, meaning those that domesticated the customs requirements to engage in trade under the AfCFTA, Mene said that the services will also be added in the continental trade.
“We have been directed by certain heads of states and governments to expand the scope of the guided trade initiative to include the service sector. That is the objective for this year.”
“This is a critical step to a full operationalization of the AfCFTA,” he emphasized.
Protocol on Digital Trade to be finalised by June 2023 AfCFTA Secretariat (GhanaWeb)
The African Continental Free Trade Area Secretariat has hinted that a protocol meant for digital trading activities will be finalised by June this year. According to Roslyn Ngeno, who is a Senior Investment Expert at the Secretariat, the protocol on digital trade can help unlock the full potential of the free trade pact which can benefit African economies, enhance competitiveness and improve digital inclusion efforts.
“The protocol is envisioned to align our objectives to promote and facilitate trade among members countries under the AfCFTA. The implementation of the protocol will be achieved by establishing clear coherent, transparent, harmonised rules, common principles and old standards for digital trade in order to creating a fair, open, predictable, secure and trustworthy digital trade environment for businesses and consumers”. “We are pleased to report that the negotiations toward the development of the Protocol on Digital Trade have commenced with it expected to be finalized in June 2023.” Roslyn Ngeno made this known when she read a speech on behalf of AfCFTA Secretary General, Wamkele Mene at the third edition of the Mobile Technology for Development Conference held in Accra.
Factors behind EAC region’s 4.5 percent economic expansion (The Citizen)
The services sector and industry played a key role in 4.5 percent growth in the East African Community (EAC) bloc last year. Continued public investments and easing of the global supply chain and Covid-19 related constraints were other contributing factors.
This emerged during the just-ended meeting of the 26th meeting of the EAC Monetary Affairs Committee in Bujumbura, Burundi. The meeting, which was attended by the central bank governors, was told that the economic performance of the region remained strong last year.
A GDP growth of 4.5 percent was recorded in 2022 which was supported by a strong growth of the services and industry sectors.
Africa should invest in people-centered strategies to accelerate economic recovery (UNECA)
Africa – pummeled by a combination of crises – should swiftly invest in and implement people-centered strategies to mobilize financial resources and accelerate continental economic recovery, Economic Commission for Africa, acting Executive Secretary, Antonio Pedro has urged.
Opening the ministerial segment of the 55th Session of ECA’s Conference of African Ministers of Finance, Planning and Economic Development, Mr. Pedro said Africa was at the center of global sustainability transitions, such as decarbonization of production systems, electrification of transportation infrastructure and accelerated use of renewable energy, which he said should underpin Africa’s recovery from the multiple crises.
“We need to adopt measures to mitigate economic and social vulnerability, reduce economic inequality, foster inclusive and resilient growth and accelerate poverty reduction in Africa,” Mr. Pedro, told participants and stressed that Africa needs a people-centered development model that integrates poverty and inequality reduction into national and regional development strategies.
Reducing poverty and inequalities will need inclusive economic policies (UNECA)
Africa needs inclusive economic policies that promote sustainable growth while reducing poverty and inequality, Deputy Executive Secretary and Chief Economist of the Economic Commission for Africa (ECA), Hanan Morsy urged, underlining pro-poor policies as the cornerstone of recovery of the continent.
Noting that Africa was “facing a perfect storm of overlapping and recurring crises” of the COVID-19 pandemic, the war in Ukraine and climate change,” Ms. Morsy said that these crises have exacerbated poverty and inequality, which were already significant before the pandemic.
“There is an urgent need to foster a development model centered around people and to mainstream poverty and inequality into national and regional development strategies,” Ms. Morsy said in a presentation introducing the theme, “Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities” of the 55th Session of the Conference of African Ministers of Finance, Planning and Economic Development whose ministerial segment opens in Addis Ababa, Ethiopia next week.
The Council of Ministers of the Southern African Development Community (SADC) met on 18-19 March 2023 in Kinshasa, the Democratic Republic of Congo to deliberate on issues aimed at consolidating regional integration, cooperation and development.
The meeting was held under the 42nd SADC Summit Theme, “Promoting industrialization through agro-processing, mineral beneficiation, and regional value chains for inclusive and resilient economic growth”, which takes into account the urgent need to enhance the roll out of the SADC industrialization and market integration programmes in the SADC Regional Indicative Strategic Development Plan (RISDP) 2020-2030.
On his part, the Chairperson of the SADC Council of Ministers, His Excellency Didier Mazenga Mukanzu, Minister of Regional Integration and Francophonie of the DRC called on Member States to redouble their efforts to eliminate all forms of obstacles that hinder SADC’s efforts towards achieving the priorities outlined in the RISDP 2020-2030, particularly in the areas of infrastructure in support of regional integration and industrial development and market integration. He said the removal of these obstacles will enable increased intra-regional trade, job creation and the improvement of the living standards of the people.
Achieving the Vienna, Doha Programme of Action through structural transformation in Africa (UNECA)
Practical and innovative ways to accelerate inclusive economic transformation in Africa took center stage in a session to review progress and set a new agenda in the implementation of the Doha and Vienna programme of action in Africa at the expert’s segment of the 55th Conference of African Ministers of Finance, Planning & Economic Development.
Presentations by the Economic Commission for Africa (ECA) highlighted that despite a greater emphasis on both programmes of action in building productive capacity, boosting agriculture, food security, trade, good governance, and development, most African countries which form the majority of the LDCs have made only limited headway in transforming the structure of their economies to achieve sustainable development.
Intergovernmental Committees of Senior Officials and Experts: A forum to discuss Africa’s challenges (UNECA)
As part of the Experts meeting of the 55th Conference of African Ministers of Finance, Planning and Economic Development being held in Addis Ababa, Ethiopia, the Director of the Sub-Regional Office for Southern Africa, Eunice Kamwendo made a presentation on Thursday on the Intergovernmental Committees of Senior Officials and Experts organized in 2022 by the five Sub-Regional Offices of the United Nations Economic Commission for Africa (ECA).
After presenting the themes, major discussion points, key issues raised and recommendations of the Intergovernmental Committees of Senior Officials and Experts organized by the five ECA Sub-Regional Offices, Eunice Kamwendo cited some of the key interventions of these offices in terms of support to the implementation of the African Continental Free Trade Area (AfCFTA), the development of national plans, and analytical and planning tools.
AFC Boosts Petroleum Refining In Africa With $800m (Leadership News)
The African Finance Corporation (AFC) has deployed about $800 million towards supporting Africa’s refinery sector with an additional $210 million in its near-term pipeline. Cumulatively, the AFC and the African Export Import Bank (Afreximbank) are investing about $16 billion in oil and gas projects across Africa.
Global head, Client Relations at Afreximbank, Rene Awembeng, said the company’s oil and gas portfolio exceeds $15 billion with a healthy pipeline across the entire continent.
Awembeng, made the disclosure at the ongoing African Refiners and Distribution Association (ARDA) conference in Cape Town, South Africa.
At the conference, stakeholders called for retention of funds within the continent to finance the over $190 billion yearly energy investment need of the continent.
Members continue discussion on TRIPS Decision extension to therapeutics and diagnostics (WTO)
Under paragraph 8 of the Ministerial Decision on the TRIPS Agreement, WTO members had agreed to make a decision before 17 December 2022 on whether to extend this Decision to cover the production and supply of COVID-19 diagnostics and therapeutics, confirming members’ right to override the exclusive effect of patents and provide greater scope to take direct action to diversify production of these products through clarifications of existing flexibilities and a targeted waiver over the next five years.
Given that consensus was elusive on the extension, the TRIPS Council decided in December last year to recommend to the General Council to postpone the deadline for such a decision. The General Council on 19 December 2022 agreed to this recommendation and resolved to return to the question of the duration of the extension at its next meeting, held on 6-7 March 2023, where members again agreed to keep the issue open for discussion while substantive discussions continue in the Council for TRIPS.
African Union sustainable funding strategy gains momentum (AU)
At the Extraordinary Summit of the AU held in Niamey, Niger July 2019, the Executive Council adopted the AU budget for the year 2020 at US$647.3 million. Following reforms initiated in the programme planning and budgeting process, the 2020 budget reflects a significant reduction of over US$30 million, compared to the 2019 budget.
The budget reduction further demonstrates an enhanced process of domestic resource mobilisation and stringent measures applied such as the decisive actions taken to address issues of low execution of AU projects and activities; identifying undetected wastages and instances of over-budgeting by departments or organs; as well as ensuring full compliance with the AU financial rules and regulations to ensure the prudent use of these resources to meet the development needs of the continent. The budget also reflects a commitment to strengthen a results-based budget, which enables the AU to improve the credibility of its budget, strengthen financial management capacity and accountability and demonstrate value for money and results to its Member States.
UN Forum concludes with urgent call for nations to scale up development cooperation to better support the most vulnerable (United Nations)
The 2023 Development Cooperation Forum concluded today at the United Nations headquarters in New York with an urgent call from Member States, international organizations and civil society to scale up development cooperation for the world’s most vulnerable people. Over 1.2 billion people are living in countries vulnerable or severely exposed to food, energy and financial shocks, according to UN estimates. Innovative and bold recommendations and solutions were proposed for supporting countries and groups facing ongoing challenges posed by an uneven COVID-19 pandemic recovery, the cost-of-living crisis, and the complex consequences of climate change.
“At a time when we need development progress more than ever, the Sustainable Development Goals are issuing an S.O.S.,” said UN Deputy Secretary-General Amina Mohammed. “Our collective response must involve a major transformation in development cooperation. This transformation should better protect the most vulnerable, especially during crises. It should invest in people. And it should ensure that development cooperation addresses not just urgent needs today but also the needs of tomorrow.”
National roadmaps can help countries to pursue SDGs (University World News)
There is a need for greater investment in research and development (R&D), including the work done by higher education institutions, as well as for the promotion of science and technology-led innovation ecosystems in the world’s least-developed countries, which should link science, technology and innovation (STI) to socio-economic priorities and sustainable development.
The call for increased investment in R&D, one that is frequently heard at high-level policy discussions, was repeated during a round table discussion on 6 March themed, ‘Leveraging the power of science, technology and innovation for the sustainable development of LDCs’. It was part of the 5th United Nations Conference in Doha, Qatar, on the least-developed countries (LDCs).
It comes against a backdrop in which the state of STI in the least-developed countries appears somewhat gloomy.
Black Sea Grain Initiative extended (UNCTAD)
The Black Sea Grain Initiative, signed in Istanbul on 22 July 2022 to resume vital food and fertilizer exports from designated Ukrainian seaports, has been extended. A note to correspondents from the Office of the Spokesperson for the UN Secretary-General announced the extension on 18 March.
“The initiative allows for the facilitation of the safe navigation for the exports of grain and related foodstuffs and fertilizers, including ammonia, from designated Ukrainian seaports,” the note said.
Economic outlook: slightly more optimistic but fragile, says OECD (OECD)
On the back of improved business and consumer confidence, declining food and energy prices and the re-opening of the Chinese economy, the OECD’s latest Interim Economic Outlook projects global growth to reach 2.6% in 2023 and 2.9% in 2024. “The outlook today is slightly more optimistic than our previous forecasts, though the global economy remains fragile,” OECD Secretary-General Mathias Cormann said. “Some key risks, such as persistent large-scale energy and food market disruptions have been mitigated for now, however Russia’s war of aggression against Ukraine, persistence in services inflation, financial market turbulence, and the steady decline in underlying growth prospects, could be sources of further disruption. More targeted fiscal support and structural reforms to revive productivity growth will be key to optimising the recovery and long-term growth prospects.”
DG Okonjo-Iweala: WTO can advance sustainable development goals by delivering results at MC13 (WTO)
The Director-General spoke at the presentation of the 30th Global Trade Alert (GTA) report “Must Do Better: Trade & Industrial Policy and the SDGs.” The report explores the incidence of trade policies on selected SDGs, drawing upon evidence from thousands of trade, investment, industrial and other measures.
“We can be proud of the WTO’s record on SDG targets directly related to the work we do here,” the Director-General said, noting that the Agreement on Fisheries Subsidies reached at the WTO’s 12th Ministerial Conference (MC12) last June directly addresses SDG Target 14.6 on prohibiting certain harmful fisheries subsidies while the MC12 Decision on TRIPS and COVID-19 vaccines is in line with SDG Target 3.3.b on access to affordable essential medicines and vaccines. Likewise, the 2015 Nairobi Ministerial Decision prohibiting the use of export subsidies and equivalent measures contributes to SDG 2.2.b on enhancing agricultural productive capacity in developing and least developed countries.
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Eswatini trade pact to be extended by five years (Taipei Times)
President Tsai Ing-wen and Eswatini Prime Minister Cleopas Sipho Dlamini agreed to extend a bilateral economic cooperation agreement to 2028, a source familiar with the matter said on Tuesday.
Dlamini said he would soon arrange for his country — Taiwan’s sole diplomatic ally in Africa — to renew cooperation with Taipei during talks with Tsai and Premier Chen Chien-jen, the person said.
The two countries signed their first bilateral agreement in 2008 with a term of 10 years, which in 2018 was replaced by a five-year agreement.
The agreement is to include pledges by the Kingdom of Eswantini to continue supporting Taiwan’s bid to join international organizations, and for Taipei to facilitate the African nation’s economic development, the person said.
South Africa to make local content in procurement compulsory (Supply Management)
South Africa’s government has announced plans to tighten legislation to ensure government procurement favours local suppliers.
Cathrine Matidza, director of fleet procurement at the Department of Trade, Industry and Competition, told a webinar that current legislation – which makes local content requirements optional for state organs – was temporary and would soon be replaced.
She said the government was working on legislation to ensure mandatory procurement of locally-produced and manufactured products in some sectors of the economy.
A constitutional court decision last year overturned South Africa’s 2017 preferential procurement regulations and scrapped mandatory local content requirements for organs of state.
Joint Communiqué on the State Visit and 2nd Bi-National Commission by Her Excellency, Dr Samia Suluhu Hassan, President of the United Republic of Tanzania (South African Government)
At the invitation of His Excellency, Mr Cyril Matamela Ramaphosa, President of the Republic of South Africa, Her Excellency, Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania, paid a State Visit from 15 to 16 March 2023 to Pretoria, the Republic of South Africa.
The Presidents also exchanged views on the Agreement on the African Continental Free Trade Area (AFCFTA) and the Tripartite Free Trade Area (TFTA) between the South African Development Community (SADC), the Common Market for East and Southern Africa (COMESA) and the East African Community (EAC) and how these instruments when ratified could bring economic benefits.
The two Heads of State participated in a Business Forum held under the theme Forging a New Deal between South Africa and Tanzania Towards High Levels of Trade and Investments”. The Forum brought together Businesspersons and representatives from the Private Sector to discuss trade and investment opportunities in the two countries. The two sides, inter alia, emphasised the importance of expanding trade and investment activities in order to drive bilateral strategic engagement forward and the need to address any barriers to trade
Nigeria’s call for inclusive G20 (The Sun Nigeria)
The recent call by the Minister of Foreign Affairs, Geoffrey Onyeama, for the permanent membership for Nigeria and the African Union (AU) in the Group of 20 nations, (G20), is a step in the right direction. The minister, who made the call in New Delhi, India, during the 1st Foreign Ministers’ Meeting under India’s Presidency of G20, also called for a reform of the United Nations Security Council (UNSC), the International Monetary Fund (IMF) and the World Bank, for more participation by member states.
Onyeama anchored the demand on the fact that as the largest economy in Africa, with stable and uninterrupted democratic governance, Nigeria is eminently qualified to become a permanent member of G20 in the nearest future.
According to him, Nigeria attaches significant importance to the G20 as the premier forum for global economic cooperation and its role in shaping and strengthening global architecture and governance on all major international economic issues and other fields that are of concern to members and the world at large. He, therefore, expressed the desire of the country to work closely with the G20 and its members to address issues of concern in the world, including the need to develop digital health solutions; vocational training and technology transfer to the South. Other areas of interest, Onyeama pointed out, included digital finance and financial inclusion in developing countries; holistic approach to debt burden, climate change and post-pandemic recovery measures.
IATA Signs Deal To Enhance Ground Safety At Mauritanian Airports (Simple Flying)
The International Air Transport Association (IATA) and Afroport Mauritanie yesterday signed an agreement to enhance the safety of ground operations in Mauritania.
The agreement is aimed at two critical global standards; the IATA Ground Operations Manual (IGOM) and the IATA Safety Audit for Ground Operations (ISAGO).
“The commitment of Afroport Mauritanie to IGOM and ISAGO will help further Mauritania’s social and economic development with safer ground operations. Lower adoption rates for global standards rank high among the factors limiting the benefits that aviation could deliver in Africa. This agreement is a great example for airports across the African continent to follow.”
Aviation has the potential to make an essential contribution to the economic growth and development within Africa. It is crucial now more than ever as the aviation industry has almost fully recovered from the pandemic and as stakeholders campaign for the Single African Air Transport Market (SAATM) and the African Continental Free Trade Area (AfCFTA).
Enough wheat for eight billion loaves of bread shipped to Africa from Ukraine since last year (News24)
Ukraine shipped enough wheat to developing African countries last year to bake eight billion loaves of bread, US Secretary of State Antony Blinken said on Wednesday. He was speaking in Ethiopia before he travelled to Niger to complete his African visit.
The wheat was shipped under the Black Sea Grain Initiative, which was agreed upon between Ukraine and Russia to allow grain passage to other parts of the world during the war between the two countries. The United Nations (UN) brokered the deal.
He said: Over four million metric tonnes of wheat have gone directly to developing countries as a result of that initiative – that is the equivalent of eight billion loaves of bread. Millions rely on the Black Sea Grain Initiative. It cannot be allowed to lapse.
Since Russia invaded Ukraine, African countries have been exposed to rising fertiliser and food prices. In contrast, aid has decreased, with some channelled to Ukraine. That showed the world that Africa needed a long-lasting solution to its food security issues.
Addressing multiple shocks can turn around Africa’s economic growth (UNECA)
Africa’s economic growth is projected to rise slightly to 3.9% after a considerable decrease to 3.6 per cent over the past year in 2022, says an overview report of recent economic and social developments in Africa by the Economic Commission for Africa (ECA).
Presenting the report’s analysis at the ongoing Experts meeting ahead of the 55th Conference of African Ministers of Finance, Planning and Economic Development in Addis Ababa, Ethiopia Adam Elhiraika, ECA Director, Macroeconomics and Governance Division centred the complex economic and financial picture on the confluence of shocks that slowed down the global economy. These include the COVID-19 pandemic impact, the rise in prices fueled by the conflict in Ukraine and extreme weather patterns.
“The result is that Africa currently accounts for the largest share of the world’s poor, with 149 million previously non-poor Africans now facing the risk of falling into poverty,” he said.
In spite of economic growth recovery, Africa still needs to curb poverty and social inequality (UNECA)
With slower economic growth and high inflation, many African countries continue hardly to strengthen the continent’s development after experiencing a series of severe and mutually reinforcing shocks. Mr Adam Elhiraika, Director of the Macroeconomic Policy Division at ECA explained that the COVID-19 pandemic, the Ukrainian war and resultant food and energy hurdles, rising inflation, debt tightening, and natural disasters brought some serious developmental challenges on the continent such as poverty and inequality rates and lack of decent jobs.
According to ECA, in 2022 an additional 18 million new poor emerged in Africa. The continent had more than half of the highest proportion of the world’s poor at 54.8 per cent. This is alarming because 546 million people were living in poverty last year, which is more than half of the continent’s population.
IRU charts hope on surmountable road transport challenges with trade unions (IRU)
IRU’s Secretary General has outlined solutions to key challenges facing the road transport sector at the global road transport trade union conference held in Johannesburg, South Africa.
Starting with the Covid-19 pandemic, several crises have struck the road transport industry in recent years, leading to supply chain instabilities and exacerbating other long-standing challenges, such as excessive border queues.
IRU Secretary General Umberto de Pretto addressed some of these key issues at the global road transport trade union conference,
One of the most critical issues facing the road transport industry is the shortage of drivers. IRU’s 2022 driver shortage survey found that unfilled commercial driver positions are continuing to increase at alarming rates across the globe.
Central Africa Calls for Investments to Counter Impact of Russia’s War (VOA)
Central African economy ministers are calling for investing in energy and farming as Africa’s poorest region struggles to recover from natural disasters, armed conflicts, and fallout from Russia’s invasion of Ukraine. Heads of state from the six nations of regional bloc CEMAC meet Friday to discuss the challenges.
Economy and integration ministers of the Central African Economic and Monetary Community, CEMAC, say most of their 55 million civilians live in abject poverty that has only been made worse by the last few years of global troubles.
President of CEMAC Daniel Ona Ondo said the ministers’ meeting strongly recommended huge investments in agriculture and energy to end over dependency on imported food and petroleum products from Russia and Ukraine.
The Africa Centres for Disease Control and Prevention (Africa CDC) hosted its lead partners at a meeting on the sidelines of the Africa Health Agenda International Conference 2023 held in Kigali, Rwanda.
The meeting, which took place from 9-10 March, was dedicated to identifying a clear set of annual objectives and deliverables for the Partnership for African Vaccine Manufacturing (PAVM) in 2023.
The Partnerships for African Vaccine Manufacturing was established by the African Union, under the Africa CDC, in 2021, to 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. PAVM’s vision is to build manufacturing capacity to produce at least 1.5 billion vaccine doses per year by 2040.
“Safeguarding Africa’s health can only be achieved through our ability to manufacture the health products we need on the continent. The new public health order outlines it well in its Pillar 2: Expanded Manufacturing of Vaccines, Diagnostics, and Therapeutics to democratize access to life-saving medicines and equipment,” said Dr. Ahmed Ogwell, Acting Director of Africa CDC.
ARDA Week: Cleaner Fuels, Vehicles will Contribute to Emission Reduction (Energy Capital & Power)
Marietta Harjono, Inspector-General of the Human Environment and Transport Inspectorate (ILT), presented a study which focused on the fuel exports and used vehicles in the Economic Community of West African States (ECOWAS) at the African Refiners & Distributors Association (ARDA) Week in Cape Town on Wednesday.
“We believe that oil companies and traders should supply cleaner fuels with the compliance of the policy rule that the ILT has published,” she said. She further emphasized that countries that implement these regulations are likely to receive younger and better vehicles which in turn benefits air quality, road safety and overall health and environmental well-being.
Africa’s trade potential for resilience in the face of unprecedented shocks (Maersk)
Global trade has recently experienced unprecedented shocks as the world grapples with the consequences of Covid-19, protracted geopolitical conflicts, and rising energy costs.
According to the International Monetary Fund (IMF), African nations were some of the hardest hit by the food crisis caused by protectionist policies implemented by exporters after the Ukraine-Russia conflict began. As a net food importer, the continent saw specific commodity prices rise by as much as 70% in some nations, with the IMF reporting that global food commodity prices rose by 23.1% in 2021.
Furthermore, according to the World Bank, global oil prices surged as several large oil companies stopped operations in Russia causing a demand increase for oil and gas coming from the Middle East and OPEC.
What’s the Africa global trade situation?
Despite economic shocks, the continent is still a source of several key global trade commodities that can support trade resilience. Africa, according to the United Nations, is home to 30% of the world’s mineral reserves, 12% of its oil, and 8% of natural gas. As home to 65% of the world’s arable land and 10% of renewable fresh water, Africa has also been a significant agricultural producer exporting fresh produce to the Middle East, Europe, and beyond.
African Economies in a Multipolar World | by Anzetse Were (Project Syndicate)
Governments, businesses, and citizens are navigating a global economic slowdown and levels of inflation not seen in decades, and Africa is no exception. Economic scars from the COVID-19 pandemic, supply shocks from the Russia-Ukraine war, and severe droughts in the Horn of Africa have created significant economic strain. Africa’s public debt is approaching the unsustainably high levels of the early 2000s, and the substitution of low-cost long-term multilateral debt by private funds has driven up debt-servicing costs.
But it is not all doom and gloom. While startup funding declined globally in 2022, African startups had accumulated more than $4.85 billion by December – a 4.75% increase from the previous year. This partly reflects Africa’s increasingly dynamic digital economy, which is expected to grow sixfold by 2050, from an estimated $115 billion to $712 billion. African countries have also managed the COVID-19 pandemic fairly well, owing to a rapid and coordinated response, and it was South African researchers who quickly identified the soon-to-be-dominant Omicron variant in late 2021.
Perhaps most important, Africa-China economic relations are now maturing and entering a new phase, after having grown immensely over the past two decades. Looking ahead, Africa-China economic engagement will be influenced by four factors: Africa’s public-debt distress, China’s changing approach to development finance, a deepening focus on soft power and diplomatic relations on both sides, and the changing composition of African economic interests.
Mozambique, Sierra Leone shows importance of peace for globalisation (Africa Aviation News)
The latest DHL Global Connectedness Index (GCI) rebutted the notion that a major retreat from globalization is underway and highlighted the 10 countries where global connectedness increased the most from 2001 to 2021 which included Mozambique and Sierra Leone.
“Mozambique and Sierra Leone exemplify the importance of peace and security for global connectedness. Both countries experienced a marked rise in connectedness following the conclusion of civil wars,” it reads.
“The latest DHL Global Connectedness Index data clearly debunks the perception of globalization going into reverse gear,” John Pearson, CEO of DHL Express, concludes. “Globalization is not just a buzzword, it’s a powerful force that has transformed our world for the better. By breaking down barriers, opening up markets and creating opportunities, it has enabled individuals, businesses and entire nations to flourish and thrive like never before.”
Green technologies: Coherent policy action needed for developing countries to reap the benefits (UNCTAD)
Green technologies – those used to produce goods and services with smaller carbon footprints – are growing and providing increasing economic opportunities but many developing countries could miss them unless national governments and the international community take decisive action.
UNCTAD’s Technology and Innovation Report 2023 published on 16 March warns that economic inequalities risk growing as developed countries reap most of the benefits of green technologies such as artificial intelligence, the Internet of Things and electric vehicles.
“We are at the beginning of a technological revolution based on green technologies,” UNCTAD Secretary-General Rebeca Grynspan said. “This new wave of technological change will have a formidable impact on the global economy. Developing countries must capture more of the value being created in this technological revolution to grow their economies.”
Women hold up half the sky — but men still rule the digital world. It is time to change this outdated reality, starting with four areas for action. Unless we close the digital gender gap, women will be left farther behind as societies reap the benefits of technological advances.
Women entrepreneurs are already pushing the frontiers of innovation. We must support them and unleash their full power if we are to achieve the Sustainable Development Goals.
Closing the digital gender divide and fostering inclusive innovation will not only benefit women and girls. Exclusion hurts everyone.
It is estimated that women’s exclusion from the digital world has taken $1 trillion from the gross domestic product (GDP) of low- and middle-income countries over the past decade. This lost productivity translates to billions of dollars in lost taxes and investments in public services.
The LDC graduation pathway must not disrupt overall sustainable development, says UN deputy chief (UN News)
LDCs are assessed using three criteria: income per capita, human assets and economic vulnerability. Countries that meet two of the three LDC criteria become eligible for graduation from the category. They may also qualify if the GNI per capita of the country is at least twice the graduation threshold ($2,444) in two consecutive reviews.
Today, the category comprises 46 countries. So far, six countries have graduated from LDC status between 1994 and 2020. Sixteen others are on path to graduation and the Doha Programme of Action, or DPoA – which aims at removing structural obstacles to comprehensive growth and sustainable development – sets the aspirational goal of 15 additional countries – many of them African countries that have yet to attain the graduation criteria.
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Egypt’s trade deficit plunges 54% YoY in December 2022: CAPMAS (ZAWYA)
Egypt’s trade balance deficit dropped by 54% year on year (YoY) to $1.93 billion in December 2022, compared to $4.20 billion in the same month of 2022, according to a press release published by the Central Agency for Public Mobilization and Statistics (CAPMAS) on March 14th.
The value of Egyptian exports slipped by 2.7% YoY to $4.18 billion in December 2022 from $4.29 billion, the CAPMAS added. The decline in exports’ value was driven by lower value of some goods, including crude oil, petroleum products, plastics, and ready-made garments that dropped by 45.1%, 41.2%, 31.4%, and 4.8%, respectively.
Indonesia plans to expand export markets to Africa (VietnamPlus)
Africa has a huge potential of becoming a destination for Indonesia’s manufacturing exports, besides its traditional markets such as the US, the EU, or China, according to the Indonesian Chamber of Commerce and Industry (Kadin). Although its purchasing power still falls behind other traditional export markets, Africa is also promising in terms of market size growth and trade competition. Not many exporters have entered the African market, and the continent’s trade barriers are not as sophisticated.
Speaking at a conference on March 14, Kadin deputy chairwoman Shinta W Kamdani said that Indonesian exports can enter and compete in Africa, particularly manufacturing products as African countries generally lack basic manufacture.
Panel unpacks how tech is influencing successful farming ventures (Engineering News)
As the world undergoes a revolution towards greener and more digitalised technology, and the need to feed almost ten-billion people by 2050 looms, there is consensus from experts speaking at Africa Agri Tech 2023 that farmers need to equip themselves with knowledge and plan for the future.
Industry body BerriesZA CEO Brent Walsh said the agricultural industry was at a critical point across the value chain, which necessitated farmers understanding their operations from land preparation to transport, and knowing what may impact on profitability under certain scenarios, over both a five-year and ten-year period.
He explained that the agricultural landscape had evolved to placing much more emphasis on relationships with stakeholders and what could help to shape and influence the ‘ideal’ operation.
Trade and Industry programmes boost economic performance (SAnews)
The Department of Trade, Industry and Competition (dtic) has tabled in Parliament its 2022/23 quarter three report, which highlights efforts made to help businesses navigate economic pressures and the persistent load shedding.
Minister Ebrahim Patel on Tuesday presented the report to Parliament’s Portfolio Committee on Trade, Industry and Competition. The presentation took note of global economic developments such as commodity price fluctuations and inflation, while providing insight into South Africa’s own economic position.
Patel particularly noted the impact of load shedding and outlined efforts made by the dtic to address this urgent and important issue.
The dtic’s efforts include a R1.3 billion energy resilience scheme facility to support companies affected by load shedding; promote investment, cut red tape and establish an Energy One-Stop Shop, managed by InvestSA. The dtic has also made interventions to improve energy efficiency and to implement an energy resilience scheme, among others.
Power cuts are hurting small businesses in South Africa - but sharing resources and equipment might be a solution (The Conversation)
Worldwide, small and medium enterprises (SMEs) are seen as the backbone of a thriving economy. They make up a substantial portion of the total number of companies and are estimated to contribute over 87% of all jobs globally.
A recent World Economic Forum report showed that major disruptions affect the value chain of SMEs significantly more than they affect larger enterprises. Disruptions, such as COVID-19 and geo-political tensions, often lead to failure among these businesses.
In South Africa, an example of a significant risk to SMEs is the acute shortage of power. Power outages mean that they can’t operate. No production or trade is possible, and inventory is damaged. The enterprises can’t plan and execute their operations effectively, or meet the demands of their customers. They can lose revenue and customers.
South Africa’s acute power shortages are likely to go on for some time. But we believe that the concept of the sharing economy holds promise to minimise disruptions.
Experts call for policy review to grow Kenya’s trade (The Star)
Kenya needs to address existing obstacles that hinder regional business in order for its trade sector to achieve full potential, according to policy researchers. Kenya Institute for Public Policy Research and Analysis (KIPPRA) says the concentration of goods and services to a few varieties and export markets has limited the trade sector’s performance.
KIPPRA Executive Director Rose Ngugi in the brief says the state will need to finalise the implementation of the Medium-Term Plans (MTP’s) on proposed trade flagship projects that are still lagging.
This, she says, will include the construction of one-tier markets that are yet to be completed, including mapping out all the products exported to and imported within African to boost trade performance.
“To enhance trade performance and achieve economic resilience it is imperative to strategise in taking advantage of the opportunities brought by operationalisation of the African Continental Free Trade Area (AfCFTA) and other trade agreements,” said Ngugi.
Kenya suspends ban imposed on powder milk imports (The East African)
Kenya has suspended a recent ban on the importation of milk powder into the country “to allow for the Dairy Industry (Import and Export) Regulations 2021 to apply accordingly”.
The Kenya Dairy Board had on March 6 announced an indefinite suspension of milk powder imports in move seen as protecting processors and farmers from lower prices since the milk powder imports could lead to a glut in the market since the anticipated seasonal rains are expected to significantly boost local milk production and reduce the need for imports.
But in a statement dated March 14, 2023, Kenya’s Agriculture and Livestock Development Permanent Secretary Harry Kimtai announced the suspension of the ban on the milk powder imports.
“Take note that the importation of products under the East African Community (EAC) protocol refers to good being imported from outside the East African Community, while good traded within the EAC are referred to as transfers,” Mr Kimtai said.
Entrepreneurship Policy Review - Uganda (UNCTAD)
The Entrepreneurship Policy Framework and Implementation Guidance aims to support developing country policymakers in the design of initiatives, measures and institutions to promote entrepreneurship. It identifies policy objectives and options in the form of recommended actions, and proposes checklists, case studies and good practices. It also offers a user guide and methods for policy monitoring and evaluation, suggesting a set of indicators to measure progress.
Uganda has a number of well-crafted policies and strategies that describe actions to be taken to promote the development of entrepreneurship and MSMEs.
The National Entrepreneurship and MSMEs Strategy (NES) engaged a holistic approach and examined a variety of ways to create and nurture the synergies between the different pillars of UNCTAD’s Entrepreneurship Policy Framework (EPF); Uganda’s MSMEs Policy of 2015; and the National MSMEs Strategic Plan 2016/2017-2020/21.
Mauritius: Pre-Budget Consultations 2023-2024 kickstart today with representatives of the Confederations of Trade Unions (Republic of Mauritius)
The first Pre-Budget consultative meeting in the context of the forthcoming Budget 2023-2024 with representatives of the Confederations of Trade Unions was chaired, this afternoon, by the Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy, at the Conference Room of the Ministry, in Port Louis.
The President of the NTUC, Mr Narendranath Gopee, highlighted that discussions with the Finance Minister focused on the Statutory Bodies Act and the need to be more transparent on the contracts allocated by Government.
Economic diversification away from oil is crucial for reversing recent economic setbacks in the Republic of Congo and put the country on a pathway to long-term prosperity, says the World Bank in its latest Country Economic Memorandum report on the country. The cost of over-reliance on oil has been painfully apparent in the past decade. A seven-year recession, induced by the end of the last oil-boom cycle, has led to a dramatic drop in income per capita, shrunk the size of the economy and weakened long-term growth prospects. While oil prices have surged more recently, returning Congo’s economy to growth in 2022, the current development model is unlikely to deliver sustainable economic growth and productive jobs going forward.
Attaining sustainable development in Congo urgently requires efforts to diversify national assets, focusing on stronger institutions, development of human and physical capital, and a more balanced exploitation of natural resources, says the report, titled Congo’s Road to Prosperity: Building Foundations for Economic Diversification.
GCB Bank completes first Pan-African Payment and Settlement System client transaction in Ghana (Myjoyonline)
GCB Bank Plc, one of the largest banks in Ghana, on 8 March 2023 announced it successfully completed the first Pan-African Payment and Settlement System (PAPSS) client transaction in Ghana. The transaction involved a Ghanaian incorporated entity initiating a supplier payment from GCB in Ghana Cedis to a beneficiary in Nigeria who received the payment in Naira instantly. This innovation revolutionalizes the way Ghanaian individuals and businesses trade with the rest of Africa.
Uganda urges the West to end NTB to boost trade with Africa (Garowe Online)
Uganda’s Deputy Speaker, Thomas Tayebwa has asked the Inter-Parliamentary Union (IPU) member states to remove all Non-Tariff Barriers [NTB] saying that they are a hindrance to the entry of goods, especially from developing countries. While addressing the 146th Assembly of the Inter-Parliamentary Union in Manama, Bahrain, Tayebwa listed bottlenecks that are hampering the growth of some member states
“Sometimes your supermarket shelves are empty when we have fruits, vegetables, and other agricultural products rotting in our countries,” he said. Currently, the IPU comprises 178 member parliaments and 13 associate members. Tayebwa challenged the developed world to work with developing countries to add value to their products.
Kenya expects further trade ties with China (China Daily)
Trade relations between China and Africa are expected to see a further rise this year, with the easing of the COVID-19 pandemic, the head of the International Chamber of Commerce-Kenya said. Julius Opio, director of the chamber, said there are many opportunities for both Africa and China to enhance their trade relations this year and beyond, following further relaxation of COVID-19 policy in China that will facilitate international personnel exchanges.
In addition, the disruption of logistics over the last three years has created shortages of critical goods, so it is an opportunity for China to consider setting up manufacturing units in Africa.
He said Kenya, for instance, the biggest economy in eastern Africa, has the capacity, skills and sufficient energy to run factories and that it can become the hub to re-export products across Africa. “That way, it becomes a win-win situation whereby we create more jobs in Kenya at the same time importing materials from China for local assembly and manufacturing,” he said.
Sectors such as electronics, information technology, hospitality, renewable energy and agriculture offer huge China-Africa trade opportunities this year.
Nigeria, Japan deepen partnership as trade value hits $10bn annually (Daily Trust)
The Executive Secretary of the Nigerian Investment Promotion Commission (NIPC), Hajiya Saratu Umar, has reiterated the federal government’s effort to partner with the Japanese government to explore areas of business partnerships to deepen the investment drive of both countries.
Speaking on the rationale behind the visit, the Japanese ambassador noted that Nigeria has been a strategic business partner as the value of trade volume between the two countries now stands at $10 billion annually with expectations that the figure will rise in the coming years.
He said: “Nigeria’s trade volume with Japan has reached 10 billion dollars, and it is growing, which is why we are visiting to reiterate our partnerships and build on it especially after the recently held Nigeria Japan business forum which provided a very good opportunity to forward business relationships.
EU slams Algeria’s barriers on trade with Spain (The North Africa Post)
Head of EU Diplomacy Josep Borrell called, on Monday during his two-day visit to Algiers, for a solution to Algeria’s barriers on trade with Spain, introduced in June 2022.
“The barriers introduced [by Algeria] to trade with Spain, since June 2022, must find a solution,” said the High Representative of the European Union for Foreign Affairs and Security Policy and Vice-President of the European Commission.
Since last June, the European Commission has “regularly expressed its concern about the trade implications” of Algiers’ decision, “in particular the blocked shipments from Spain.
“Trade policy is an exclusive competence of the EU” and therefore Brussels “is ready to take action against any measure applied against a member state,” stressed Miriam Garcia Ferrer, spokeswoman for the European Commission for Trade, in a recent statement to the Spanish news agency Europa Press.
Business and trade between Spain and Algeria have been blocked since last June.
Kenya Asks EAC To Harmonize Legal Framework To Promote Aquaculture Trade (Kenya News Agency)
Kenya has called upon other East Africa Community States to consider harmonization of the legal frameworks, that would ensure smooth movement of aquaculture products across the borders.
In a speech read on her behalf by Fisheries and Blue Economy Secretary, Lucy Obungu, during the official opening of the second Eastern African Regional Aquaculture Conference and Exhibition, at the Jaramogi Oginga Odinga University of Science and Technology, the Principal Secretary (PS), Ministry of Mining, Blue Economy and Maritime Affairs, Betsy Muthoni Njagi, said the engagement of the East African countries should ensure seamless flow of goods and professional services in the region.
While the need to transition to a cleaner energy future is a global priority, Africa’s energy poverty challenges require strong and immediate solutions, of which investment in infrastructure to strengthen energy supply and access is predominant. In line with this, Rene Awambeng, Global Head and Director, Client Relations at pan-African multilateral financial institution the African Export-Import Bank (Afreximbank) delivered a presentation during this year’s edition of the African Refiners & Distributors Association – taking place from March 14-17 in Cape Town.
The presentation, under the theme, ‘Financing Infrastructure Projects to Accelerate Africa’s Energy Transition,’ tackled emerging trends across the African energy sector, with Awambeng making a strong case for increased infrastructure investment with the aim of accelerating the continent’s energy transition.
Road to COP28: African negotiators convene in Nairobi for climate policy talks (The Standard)
Negotiators from over 33 African countries are meeting in Nairobi to reflect on COP27 outcomes and develop a common African position on climate action pertaining to agriculture and gender for COP28. The meeting, convened by the African Group of Negotiators Experts Support (AGNES) for the next four days aims to define policy solutions to tackle the ongoing climate crisis in Africa, which is compounding food insecurity on a continent already severely afflicted by hunger and malnutrition.
The African Group of Negotiators and other African voices have been pushing for agriculture to be formally recognised in the UNFCCC negotiation process.
Horn of Africa ministers seek private sector backing for projects (The East African)
Finance ministers from the Horn of Africa are seeking ways to attract more private sector backing for projects in infrastructure, energy and technology, to better build economic resilience as drought and inflation bite.
The leaders met under the Horn of Africa Initiative (HoAI) in Nairobi this week and agreed to develop a “comprehensive” private-sector engagement strategy, which is expected to be tabled at the next meeting in October.
This is projected to help bridge the existing funding gap that has slowed down the implementation of the initiative’s priority areas: infrastructure development, trade and economic integration, building resilience and human capital development.
Kenya’s Treasury Cabinet Secretary Njuguna Ndung’u, who chaired the closed-door ministerial meeting, said private sector finance will enable the execution of the region’s projects in infrastructure, energy, digital markets, trade and economic integration.
Africa must lead the charge on tackling poverty (UNECA)
Africa must lead the charge in mobilizing domestic resources to recover from multiple economic and social crises which have deepened poverty and widened inequality on the continent, Acting Executive Secretary of the Economic Commission for Africa, Antonio Pedro, has urged, warning that Africa risks missing the Sustainable Development Goals.
“Africa currently leads in global poverty,” Mr. Pedro told participants at the 41st meeting of the Committee of Experts that kicked off today, ahead of next week’s Conference of African Ministers of Finance, Planning and Economic Development Addis Ababa, Ethiopia.
Mr. Pedro cautioned that without bold financial and climate action, Africa will be locked into a poverty trap. With more than half of the world’s poor – 54.8 per cent in 2022 being in Africa, the continent had overtaken South Asia with 37.6 percent, while the COVID-19 outbreak had pushed 62 million people into poverty in just one year, with an additional 18 million estimated to have joined their ranks by the end of 2022.
The Africa we want: a roadmap out of poly-crises for policy makers (UNECA)
The confluence of shocks – the cascading impact of the COVID-19 pandemic, the war in Ukraine and severe natural disasters – have eroded Africa’s development gains, resulting in a staggering 149 million previously non-poor Africans now facing the risk of falling into poverty.
The growing number of new poor and vulnerable people is making it harder to close the gap between the rich and the poor. Moreover, Africa currently accounts for the largest share of the world’s poor. This inevitably has a far-reaching impact on achieving the sustainable development goals and the vision of the Africa we want.
The crisis, however daunting, presents an opportunity for the African ministers of finance, planning and economic development assembling in Addis Ababa from 15-21 March 2023, to make concerted efforts on providing concrete solutions. The theme, fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities, should yield long term actions to move the continent forward on a path of prosperity.
Two African banks stake $16 billion in oil, gas projects (The Guardian Nigeria)
About $16 billion is being invested in oil and gas projects across Africa by the African Export Import Bank (Afreximbank) and the African Finance Corporation (AFC). This was disclosed yesterday at the ongoing African Refiners and Distribution Association (ARDA) conference in Cape Town, South Africa.
This is coming as stakeholders at the conference urged Africans to keep funds within the continent to finance the over $190 billion yearly energy investment needed on the continent.
Of the banks’ investment, $15 billion of the funds is being invested by Afreximbank while AFC already invested over $800 million with additional over $200 million expected to be finalised.
Afreximbank Boss To Speak On Economic Growth (Economic Confidential)
The President and Chairman Board of Directors of African Export-Import Bank, Professor Benedict Oramah, will lead discussions on critical issues that will give further insights into the economic transformation of Africa at the 2023 Annual Lecture of The Chartered Institute of Bankers of Nigeria.
Scheduled to hold on March 29, 2023, the theme of the lecture which will hold in Lagos is, “Unlocking the Constraints to Africa’s Economic Transformation: Insights into the Power of Capital.”
According to a statement by the CIBN, the institute intends to keep members of the public constantly abreast of topical economic issues and policies of government at the national and international levels.
The African Development Bank and partners on Tuesday launched a new Investment in Digital and Creative Enterprises (iDICE) programme.
The initiative, with investments totalling $618 million, will attract direct investments in more than 200 technology and creative start-ups and provide non-financial services to about 450 digital technology, small and medium enterprises. With a potential to generate $6.4 billion into the Nigeria’s economy, iDICE is expected to create 6 million new jobs for young Nigerians.
Afreximbank, EIB unveil €200m pharmaceutical financing scheme for sub-Saharan Africa (The Independent Uganda)
The European Investment Bank (EIB), the world’s largest multilateral bank, and Afreximbank, the pan-African multilateral financial institution, have joined hands to finance healthcare and pharmaceutical manufacturing projects across sub-Saharan Africa in an attempt to strengthen health resilience on the continent.
Afreximbank and the EIB will each provide €100 million new investment to update and expand public healthcare facilities and enhance production of safe, affordable and effective medicines across sub-Saharan Africa.
The new Africa health financing initiative, part of the European Union Global Gateway initiative, has been designed by health, financial and technical experts from EIB and Afreximbank to unlock crucial investment to improve access to local healthcare and scale-up production of medicines essential to tackle deadly diseases such as cancer, HIV, malaria and tuberculosis.
We’ll explore options to enhance continent’s aviation industry – ECA (New National Star)
The Economic Commission for Africa (ECA) will collaborate with partners in the aviation industry to explore all options to enhance the sustainability of the continent’s aviation industry.
Acting Executive Secretary of the ECA, Antonio Pedro, in a statement issued on ECA’s website, said this while speaking on the Sustainable Development of Air Transport in Africa.
According to him, for the air transport industry in Africa to recover from its various shocks and remain sustainable, partnership will be key.
African seed sector players call for favourable regulatory policies (Modern Ghana)
As part of its efforts to help increase the resilience and profitability of African farming in the face of climate change and other challenges, African Seed Trade Association (AFSTA) last week concluded its 23rd African Seed Trade Association annual Congress in Dakar, Senegal, to which discussed regional and international seed issues.
The congress came at a time when experts fear that climate change will worsen existing inequalities within the global trade systems, and the seed sector will not be spared.</p><p>The objectives of this congress, being a gathering of top seed traders and producers traditionally cover a wide spectrum of issues in the seed value chain.
Africa pays the price as China and Russia jostle for its resources (The East African)
Analysts say China and Russia are bolstering their presence in Africa to tap its rich natural resources, amid grave warnings from UN agencies the world’s poorest countries face accumulating crippling debts.
“One out of every three major infrastructure projects in Africa is built by Chinese state-owned enterprises, and one out of every five is financed by a Chinese policy bank,” said Paul Nantulya of the Africa Centre for Strategic Studies, an academic institution within the US Department of Defence.
“Russia, a key arms exporter to Africa, is also making forays into the continent through mining projects granted to the Wagner private paramilitary group,” Nantulya said.
Chinese envoy refutes allegations of “debt trap” in Africa (Xinhua)
Xue Bing, Special Envoy for the Horn of Africa Affairs of the Chinese Ministry of Foreign Affairs, on Tuesday refuted the groundless cliche that China is creating a “debt trap” in Africa, calling it a narrative trap instead. Addressing media here in the Ethiopian capital, the special envoy said Africa’s debt burdens should not be blamed on China.
Data from the World Bank last year showed that among a total of 696 billion U.S. dollars in external debts in 49 African countries with accessible data, three-quarters are held by multilateral financial institutions and commercial creditors, the lion’s share of Africa’s debts; while 35 percent are owed to Western private lenders, nearly three times of the total obligations to China, he said.
EU needs to strengthen cooperation with Africa on trade in services - ECFR study (The North Africa Post)
Trade in services is critical for improving the competitiveness of African economies and improved trade in services with African countries could help the European Union diversify its supply chains, strengthening resilience and reducing dependencies on China and other Asian countries, according to a new policy brief published by the Brussels-based European Council on Foreign Relations (ECFR).
Services are largely missing from Europe’s trade and development cooperation agenda with Africa, which is almost exclusively focused on commodities and other primary goods — despite the growing importance of services in the global economy. Yet the services sector has now outstripped the primary and secondary sectors in their contribution to African output, making up more than half of the continent’s GDP.
A stronger services trade between the EU and Africa would allow European multinationals to near-shore their production processes and diversify away from Asia-focused supply networks. Improved trade in services would also allow the EU to influence regulatory models across various sectors.
Europe eyes Africa as ‘future source of cheap green hydrogen’ (The Independent Uganda)
After Russia’s invasion of Ukraine in March 2022 set off a rush for gas resources worldwide, Europe picked Africa as an alternative supply market for natural gas, European energy ministers and other political leaders toured North African countries and gas initiatives in both East and West Africa received renewed support.
Now, Europe is setting its sight on Africa’s yet-to-be-developed green hydrogen industry, in what appears to be an early race to build up clean energy resources, part of a major, continued transition away from fossil fuels.
Digital technology new source of discrimination against women: Guterres (UN News)
The town hall with representatives from non-governmental organizations (NGOs) was held as part of the annual session of the UN Committee on the Status of Women (CSW), which meets in New York every March. Its latest two-week session - known as CSW67, which runs through Friday - is focused on the theme of innovation, technological change, and education in the digital age.
Mr. Guterres noted that digital technology – the product of an industry that is predominantly male - represents a new source of discrimination and bias. “Rather than presenting facts and addressing bias, technology based on incomplete data and badly-designed algorithms is digitizing and amplifying sexism – with deadly consequences,” he said.
The gender digital divide is fast becoming the new face of gender inequality, he continued. Online spaces are not safe for women and girls, as they have been attacked, targeted, or denigrated on the internet.
UN deputy chief warns of faltering progress towards SDGs (UN News)
“Let me be frank: we are not doing well. Our progress towards the SDGs has faltered and even gone into reverse on some important targets and Goals, leaving many behind,” she said in opening remarks to the Arab Forum for Sustainable Development (AFSD) in Beirut, Lebanon.
“Let me be frank: we are not doing well. Our progress towards the SDGs has faltered and even gone into reverse on some important targets and Goals, leaving many behind,” she said in opening remarks to the Arab Forum for Sustainable Development (AFSD) in Beirut, Lebanon.
She highlighted how the COVID-19 pandemic, the war in Ukraine and the “triple planetary crisis” – climate change, biodiversity loss and pollution - have affected lives and livelihoods.
Working group on small business approves work program, issues a call for papers (WTO)
The approved work program will hinge on five main pillars: promoting MSMEs’ access to information; building capacity to promote greater inclusion of MSMEs in international trade; providing policy guidance; implementing the December 2020 MSMEs package; and engagement with the private sector.
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‘EU is putting draconian measures on South African citrus’ (SABC News)
The Citrus Growers Association of South Africa has requested Trade and Industry Minister Ebrahim Patel to urgently convene a panel of the World Trade Organisation regarding restrictive and expensive measures imposed by the European Union to export oranges.
This is over an insect found in Sub-Saharan Africa that the EU deems potentially dangerous for its citrus growers. South African producers say they’ve implemented some of the best measures in the world to prevent this from happening.
The European Union insists that South Africa must cool and store its oranges for 20 days before exports. This requirement is because of the False Codling Moth. Stringent measures are employed by South African growers to prevent any of the insect larvae to spread. These measures are deemed highly effective by international standards. However, the additional measure of cooling and storing, which is not ideal for oranges, will add over R1 billion into costs to be able to export to the EU.
The Citrus Growers Association of South Africa says these measures are unfair and are not in line with the guidelines of the World Trade Organisation (WTO).
South Africa Has Plans in Place to Safeguard Food Supply Amid Power Crisis (BNN Bloomberg)
South Africa’s government has contingency plans in place to safeguard key food-production facilities against an escalation in power cuts that are already at record levels, the nation’s agriculture minister said. Africa’s most industrialized economy has been subjected to rolling blackouts, known locally as loadshedding, since 2008 because state power utility Eskom Holdings SOC Ltd. has been unable to meet demand from its old and poorly maintained plants. The problem has escalated since last year, raising concerns that food security is at risk.
While a total collapse of the national grid is highly unlikely, measures have been taken to ensure abattoirs can continue operating and animal vaccines are protected, Agriculture, Land Reform and Rural Development Minister Thoko Didiza said in an interview at Bloomberg’s Johannesburg offices on Monday.
“There is a plan in place already,” to deal with a situation whereby outages are increased and 8,000 megawatts of generation capacity or more is cut from the grid, she said. Longer-term, the government is looking at how best to further assist farmers who want to install solar panels and batteries to reduce their reliance on the grid, according to the minister. Financing could be made available from existing institutions such as the state-owned Land and Agricultural Development Bank of South Africa and the Industrial Development Corp., she said.
DTIC’s new energy one-stop shop to include ‘unblocking teams’ to speed up electricity investments (Engineering News)
Trade, Industry and Competition Minister Ebrahim Patel reports that an energy one-stop shop to speed up the regulatory processes required for private investment in electricity generation has been established and is being managed by InvestSA.
In a presentation to the Portfolio Committee on Trade and Industry, Patel reported that the one-stop shop had been established in line with the Energy Action Plan (EAP) to tackle loadshedding, which has since been declared a state of disaster. “The one-stop shop will assist power-generating companies navigate the different processes that apply in law and decrease turnaround times by assisting investors to submit applications through a single-window process to obtain all necessary government approvals,” Patel reported.
Some of the department’s staff had already been redeployed to the one-stop shop and further recruitments would be made from outside of the department after the start of the new financial year on April 1.
Minister Pandor to co-chair SA-Tanzania Bi-National Commission (SAnews)
The Minister of International Relations and Cooperation, Dr Naledi Pandor, will on Wednesday co-chair the South Africa-Tanzania Ministerial Bi-National Commission (BNC) with her Tanzanian counterpart, Dr Stergomena Tax, in Pretoria.
The BNC will, according to the department, reaffirm and deepen the warm and cordial bilateral relations that exist between the two countries. “It will evaluate the progress of implementation of commitments made during the inaugural session of the BNC, assess and evaluate the progress of all outstanding decisions and commitments as well as joint projects.” In addition, the meeting aims to agree on new areas of cooperation and further enhance cooperation within the framework of the BNC.
South Africa and Tanzania have similar aspirations with strong cultural and historical ties. These ties present opportunities for strengthened bilateral cooperation in many areas including trade, investment, local beneficiation, agriculture, industrialisation, energy, and mining. There are also opportunities in the value chains of commerce, agriculture, road, and rail.
R66bn worth of component exports at risk from move to EVs, but it’s not all bad news – Naacam (Engineering News)
Catalytic converters, engine parts, engines, clutches/shaft couplings, silencers/exhausts and ignitions/starting equipment are the component groupings most at risk from the global move to electric vehicles (EVs), as they are not required in these types of vehicles, says National Association of Automotive Component and Allied Manufacturers (Naacam) executive director Renai Moothilal.
These components are also not required within EVs, but their manufacturers’ existing capabilities offer them the opportunity to pivot and join the EV supply chain.
In 2021, automotive component exports from South Africa increased by 27% to a record R69.2-billion, up from R54.5-billion in 2020. Catalytic converters, at R35-billion, comprised 50.4% of total automotive component exports from South Africa, followed by engine parts, tyres and engines as the biggest categories. In total, the yearly South African component exports at risk amount to R66-billion, says Moothilal.
‘Africa not a dumping ground for used EU vehicles’ - Legacy (The Citizen)
The Legacy Motor Group has called for greater restrictions on the importation of what is calls “unfit European vehicles” into Africa and indeed, South Africa. Echoing sentiments made by the National Association of Automobile Manufacturers of South Africa (Naamsa) almost three years ago, the group’s chairman, Mpho Dipela, said while the majority of the continent’s assembled vehicles principally originate from South Africa and Morocco, imports continue to dominate other nations.
In 2020, Naamsa remarked that an estimated 300 000 grey import market vehicles, mostly from Japan, frequent South Africa’s roads at a loss of R3.8-billion per annum to the country’s tax coffers.
“Grey imports have a negative impact on the automotive ecosystem because they rob the fiscus of the much needed tax revenue; they hurt job creation; they aid criminal activity; and undermine road safety initiatives,” Naamsa said at the time.
“To put into perspective, the monthly average new vehicle market for 2020 is 28 500 units. Grey imports represent an extra months sales per annum, which represents 7.5% of total market and would be the third largest brand in South Africa by volume”.
SEC endorses PAPSS to boost intra-African trade, foster capital market diversification (Businessamlive)
The Securities and Exchange Commission (SEC) has said that the implementation of the Pan-African Payment Settlement System(PAPSS) will boost intra-African trade and foster diversification within the capital market. Okey Umeano, head, office of the chief economist of SEC disclosed this recently while addressing newsmen in Abuja, Nigeria’s capital city.
PAPS was developed by African Export-Import Bank (Afreximbank), and launched in January 2022 in Accra, Ghana, with the objective to boost intra-African trade by transforming and facilitating payment, clearing and settlement for cross-border trade across Africa.
PAPSS enables instant payments across African borders in local currency. Its three core processes are instant payment, pre-funding, and net settlement. With this new system, businesses will no longer need to convert local currencies to foreign currencies before they can make purchases across the continent, significantly reducing the amount of time it will take to complete a transaction. PAPSS will make and process payments within two minutes.
Prior to the implementation of PAPSS, over 80 per cent of African cross-border payment transactions are processed in the United States but have their recipients in other regions. The Asia-Pacific and Europe, the non-Eurozone regions account for a combined 52 per cent of where the payments are eventually transferred, compared to only 17 per cent for Africa. That posed multiple challenges, ranging from payment delays to operational inefficiencies and compliance concerns for the disparate regional payment systems.
Revenue Service Lesotho (RSL) Launches e-payment, e-taxation platforms (ZAWYA)
The Revenue Service Lesotho launched e-payment and e-taxation which gives the clientele a platform to pay taxes online and e-file their tax returns. These e-services are aimed at broadening the use of technology and easing tax payments across the country.
The Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane commended RSL for this initiative, saying it is wise for the country to also fit in the fourth industrial revolution for economic growth. Dr Matlanyane said SACU revenue has been declining for some time, saying this means fewer resources for financing the national budget hence the country needs to make plans to depend on itself for financing the budget.
The RSL Acting Commissioner General, Mrs. ‘Mathabo Mokoko said in collaboration with the stakeholders in the finance and economic industries they are striving to improve and provide easy methods of tax payments and e-filling for their clients.
Kenya set to get share of Sh130m e-mobility cash (Business Daily)
Kenya is one of the seven African countries set to benefit from a Sh129.3 million ($1 million) grant from the African Development Bank (AfDB) to boost the shift to electric mobility. The credit line from Sustainable Energy Fund for Africa (SEFA) —AfDB’s special fund for renewable energy— will go to the private sector to fund the designing of business models for electric vehicles and help develop a bankable pipeline of e-mobility projects.
Kenya is one of the countries in Africa spearheading the shift to clean electric transport in a bid to curb pollution of the environment through the use of diesel and super-powered transport.
Liberia and UK commit to strengthening trade (The New Dawn Liberia)
Liberia and the United Kingdom have highlighted the key role of the private sector as a catalyst in advancing trade and investment between the two countries. The Minister of Africa of the United Kingdom, Andrew Mitchell and Commerce and Industries Minister of Liberia- Madam Mawine G. Diggs, held discussions on broadening trade with Liberia and the United Kingdom.
Speaking at the Foreign, Commonwealth and Development Office (FCDO) in London, Minster Mitchell recounted the continuing partnership between Liberia and the United Kingdom in promoting democratic governance.
Minister Mawine Diggs reflected on the strategic importance of the UK Liberia relations and how it continues to impact varying aspects of the two countries.
Nigeria Needs To Transform Current Food Systems – FAO (Leadership News)
For Nigeria to attain food self sufficiency, the country’s current food systems need to be transformed to help her achieve Sustainable Development Goals agenda, not only through production technologies but also entrenching sustainable and inclusive food systems in the structure of governance and administration.
This was part of the conclusions reached by the organisation as contained in the recently released Nigeria Food Security Assessment profile.
They noted that the current food systems are unable to fulfil their purpose of providing nutritious and healthy food for all and contributing to enhanced livelihood opportunities in an environmentally sustainable way.
‘Focus more on policies that will tackle infrastructure deficit’ (The Guardian Nigeria)
Experts have stressed the need for the new administration to focus more on policies that would help tackle the nation’s huge infrastructure deficit, especially the issue of power, as well as maximise potential in leveraging African Continental, Free Trade Agreement opportunities (AfCFTA) to alleviate poverty.
Speaking on Nigeria’s economic outlook at a press briefing in Lagos, an independent tax and business advisory firm, Andersen, said Nigeria has continued to lag behind meaningful economic indexes owing to failure to adequately address its infrastructure challenges.
With the National Integrated Infrastructure Master Plan (NIIMP), $2.3 trillion is the investment required to close the infrastructure gap in Nigeria from 2020 to 2043.
Vice President, Yemi Osinbajo, had also stated that the Reviewed National Integrated Infrastructure Master Plan (2020-2043) and the National Development Plan 2021-2025 estimated the current nation’s infrastructure stock to be between 30-35 percent of the GDP in 2020 against 20 per cent of the GDP recorded at the inception of this administration in 2015. This is still a far cry from the estimated target of 70 per cent envisaged in 2043.
Botswana, Zimbabwe to Discuss Eliminating Use of Passports (VOA)
The presidents of Botswana and Zimbabwe are to discuss scrapping passport requirements between their countries to allow for the easier flow of people and goods.
Addressing ruling party supporters over the weekend, Botswana’s president, Mokgweetsi Masisi, said he will soon meet his Zimbabwean counterpart, Emmerson Mnangagwa, to discuss the issue. Botswana reached a similar deal last month with Namibia, and Masisi said he also plans to discuss the issue with the Zambian president.
“Don’t think by opening borders, we will open for criminal elements,” he said. “Criminals will be caught as we will be using advanced technology.”
Zimbabwe miners call on Mnangagwa to lift export ban on lithium (Miningmx)
LITHIUM stockpiles in Zimbabwe have grown to two million tons after the Southern African country imposed an export ban on the battery material in December, said Bloomberg News. Now Zimbabwe’s mining sector is calling on President Emmerson Mnangagwa to review the ban which is harming local producers, the newswire said citing a letter written by Henrietta Rushwaya, president of the Zimbabwe Miners Federation.
“The unexpected ban has prejudiced standing off take agreements between miners and international buyers, some of whom had taken loans from their respective countries to trade in these minerals,” Rushwaya said in the letter to Mnangagwa.
The ban has impacted small- and medium-scale miners, but it’s not clear how much lithium is contained in the stockpiled ore, said Bloomberg News.
Oil marketers to pay for fuel imports in Kenyan shilling as shortage looms (Business Daily)
Local oil companies will pay for oil imported on credit through a government-to-government deal in Kenya shillings to ease pressure on the local currency that continues to hit new record lows every week.
Energy and Petroleum Cabinet Secretary Davies Chirchir said on Monday that the government signed a deal last week with Saudi Aramco to supply Kenya with diesel and super for the next six months, while Abu Dhabi National Oil Company (Adnoc) will deliver three cargoes of super petrol every month.
Saudi Aramco is the world’s biggest oil producer and it recently bought US motor oil and lubricants group Valvoline, giving it a local presence locally in Kenya. The third player selected by the government to participate in the fuel import deal that technically shelves the current open tender system hailed for bringing transparency in the oil business in Kenya is the Emirates National Oil Company Group (Enoc).
“The product will now be paid for in Kenyan shillings and this will ensure the dollar is available for other sectors of the economy,” Mr Chirchir said adding that the importation through government to government shall be centrally coordinated by his ministry.
Europe’s inflation cuts Sh12bn horticulture income (Business Daily)
Kenya’s earnings from horticultural exports reduced by 9.7 percent in 2022 on the back of elevated inflation in main markets amid weaker currencies, data shows. Revenue from horticultural sales abroad amounted to Sh120.26 billion last year from Sh133.23 billion in the prior year, provisional export statistics indicate. The decline came in a year when the average price growth in the Eurozone — a group of 19 countries which use the euro as a common currency — climbed to 8.35 percent compared with 2.4 percent a year earlier.
Kenyan exporters had complained that the runaway inflation was eroding consumer purchasing power in the Euro area and the UK, the main destinations for cut flowers, fruits and vegetables.
Kenya sets sights on special maize imports deal with Zambia farmers (Business Daily)
Nairobi will next month sign contracts with farmers in Zambia to grow maize exclusively for export to the Kenyan market as the government seeks to lower the cost of the staple, with the first consignment under the agreements expected in August. Agriculture Cabinet Secretary Mithika Linturi said they have finalised the deal that has seen Kenya allocated at least 50,000 acres of land for growing maize in the current planting season.
The CS said the deal with the South African State has been informed by lower cost of production in Zambia and favourable weather.
Kenyan small-scale importers protest new KRA tax plan (The East African)
Importers of consolidated cargo will now be required to pay taxes based on transaction value, in a new directive by Kenya Revenue Authority (KRA) that increases the cost of doing business and retail prices.
The directive means that items such as second-hand clothes and household goods, which end up in open-air markets such as Gikomba and Nyamakima in Nairobi, will now attract import duty, value added taxes (VAT), excise duty, Import Declaration Levy, and Railway Development Levy.
The move is also expected to affect cargo volumes on the standard gauge railway from Mombasa to the Kenya Railways Corporation (Boma Line) Transit Shed in Nairobi, which was gazetted in 2021 as a facility to deconsolidate cargo.
EAC proposes flexible US market access under Agoa plan (The East African)
The East African Community (EAC) wants the US government to make the rules governing access to their market more flexible under the planned renewal of the African Growth Opportunity Act (Agoa).
The regional bloc, during its Council of Ministers Ordinary meeting held in February, made four new proposals to the Joe Biden administration to expand Agoa and make it more effective should the US Congress hasten its renewal before the 2025 expiry date.
The proposals come in the wake of plans by the American Chamber of Commerce Kenya (AmCham), a network of American and Kenyan businesses, to hold its third edition of the Business Summit on US-East Africa Trade and Investment in Nairobi later this month.
7 continental priorities region’s business community presented to AfCFTA boss (The New Times)
Rwanda on March 10 signed a host agreement with the Secretariat of the African Continental Free Trade Area (AfCFTA) and the Afreximbank for the $10 billion Adjustment Fund aimed at supporting all initiatives geared towards the implementation of the AfCFTA.
The fund is expected to serve as a vehicle for mobilizing funds, develop and operate a compensation facility aimed at mitigating the short-term impact of tariff revenue losses of state parties.
The launch was hosted by the Minister of Foreign Affairs, Vincent Biruta, together with the Minister of Trade and Industry, Jean Chrysostome Ngabitsinze, Kanayo Awani, Executive Vice President of the Intra Africa Trade Bank, Clare Akamanzi the CEO of Rwanda Development Board, Dennis Karera, the EABC Vice Chairperson, Francoise Mubiligi, the Chairperson, Rwanda Private Sector Federation, and many other senior of officials from both the government and the private sector.
The East African Business Council (EABC) is the regional apex body of private sector associations and corporates from the seven EAC countries. According to the EABC, the continental priorities presented to the AfCFTA Secretary General include:
Anchoring AfCFTA trade policy to industrial policy (Enhanced Integrated Framework)
The Secretary General of the Africa Continental Free Trade Area (AfCFTA) Secretariat, His Excellency Wamkele Mene, has identified four challenges holding back intra-African trade: market fragmentation, small-sized economies, lack of industrial capacity, and the continued exportation of primary commodities to traditional markets in the Global North. At their core, these challenges are interrelated and point to the importance of promoting a more active industrial policy, together with the ongoing trade policy effort at the heart of the AfCFTA. This is particularly key for Least Developed Countries (LDCs) situated in Africa.
The industrial policy does not mean manufacturing policy. The scope of industrial policy includes industries such as tourism, agriculture, mining and IT-based services, as well as the coordination of key enabling sectors like energy, finance and telecoms.
Industrial policy is the most important of all economic policies because it is the only one that can bring coherence across the many disparate set of economic policies that governments have. It is also the only economic policy that deliberately targets the restructuring of the entire economy toward inclusive growth. Monetary, trade and fiscal policies are all important, but cannot play this leadership and coordination function.
H. E. Mene has also alluded to another critical ingredient for AfCFTA’s success: the direct involvement of the heads of state. For decades now, the African value-adding private sector has been clear that the most important condition it needs is policy coherence from governments, so it can plan accordingly and not face too many curve balls that disrupt their plans.
So, for AfCFTA to meet its ambition and African LDCs to flourish, it’s time to unlock the transformative power of trade-oriented industrial policy in Africa so heads of state can coordinate governments and let the value-adding private sector and inclusive markets do their job in accelerating intra-African trade and the continent’s industrialisation and economic transformation.
Africa’s new free trade area will see agriculture surge (WEF)
Agriculture accounts for roughly one-third of the African continent’s GDP, provides a livelihood for 50% of the population and feeds hundreds of millions of people on the continent and beyond every day.
The key role that agriculture plays in the continent’s economy is only set to grow in strength and size under the African Continental Free Trade Area (AfCFTA) agreement, struck in February 2021 and now in full swing.
According to the World Economic Forum’s Insight Report on the deal — AfCFTA: A New Era for Global Business and Investment in Africa — the free trade area, one of the world’s largest by number of people and economic size, is projected to host 1.7 billion people and oversee $6.7 trillion in consumer and business spending by 2030.
According to the Forum’s report, agriculture has exceptional potential for increasing intra-African trade, meeting local demand, accelerating GDP growth, creating new jobs and improving inclusivity due to upstream and downstream linkages.
It will increase value addition, meet new local demand and bring smallholder farmers — who are responsible for 80% of Africa’s food production — into wider supply chains. Opportunities abound in the AfCFTA for new investment in agro-processing, in particular.
90% Tripartite Region NTBs resolved — Comesa (The Chronicle)
A total of 716 out of 796 non-tariff barriers (NTBs) registered in the online reporting system implemented by the three regional economic communities, Comesa, East African Community and the Southern Africa Development Community have been resolved. Barriers behind the border, such as unwarranted technical barriers to trade and sanitary and phytosanitary measures are equally prevalent.
“NTBs evolve over time, hence become a single most hindrance to intra-regional trade and an easy option to deter or restrict trade,” said Dr Onyango, quoted in a recent Comesa report. “They, therefore, require persistent vigilance and commitment by all stakeholders, especially members of the national monitoring committees.”
As the tariff walls come down in the global and regional trading arena, he noted that NTBs continued to thrive and emerge in different forms in the tripartite region.
Technology trends reshaping the future of logistics in Africa (The Africa Logistics)
Over the past two years, the global logistics industry has been adversely affected by unprecedented supply chain disruptions, ranging from port closures to high freight costs, material and staff shortages, and geopolitical crises. These challenges have exposed supply chain vulnerabilities and highlighted the need for built-in resilience and adaptability.
To succeed in the year ahead, logistics operators must use the tools and technologies available to anticipate and overcome sources of disruption, such as oil price fluctuations and geopolitical tensions. Here are the top five trends that the industry needs to be aware of:
The ECOWAS Consultative Committee on Competition (CCC) held its 6th meeting to review the Draft ECOWAS Directive on Consumer Protection and various instruments from the 06th to 09th March 2023, in Praia, Republic of Cabo Verde.
The meeting brought together Members of the ERCA Consultative Competition Committee (CCC) and Consultants to review the draft ECOWAS Directive on Consumer Protection prior to the submission to the meeting of ECOWAS Ministers of Trade and Industry (ECOMOTI) for validation. The Committee also had the opportunity to consider the presentations from consultants on the draft Manuals of procedures and Forms on the Community Competition Framework as well as ECOWAS Competition Information System (ECIS) which are necessary instruments to facilitate the implementation of the mandate of ERCA on promoting competition and protecting the rights and interests of consumers within the ECOWAS region.
The Meeting reviewed and validated the draft ECOWAS Directive on Consumer Protection and agreed that written comments from CCC Members on the draft Manuals, Forms and ECIS should be transmitted to ERCA no later than 15 April 2023 to finalise the said instruments before the next CCC meeting.
SADC Senior Officials meet ahead of Council of Ministers meeting (SADC)
The Standing Committee of Senior Officials of the Southern African Development Community (SADC) kicked off their meeting on 13 March, 2023, ahead of the meeting of the Council of Ministers scheduled to be held on 18-20 March, 2023 in Kinshasa, Democratic Republic of Congo.
The Council of Ministers meeting will be held under the 42nd SADC Summit Theme, which is; “Promoting industrialization through agro-processing, mineral beneficiation, and regional value chains for inclusive and resilient economic growth”. The theme takes into account the urgent need to enhance the roll out of SADC industrialization and market integration programmes as contained in the SADC Regional Indicative Strategic Development Plan (RISDP) 2020-2030.
Among the key issues on regional integration and development, the Ministers will discuss the overall Status of the Implementation of Council and Summit Decisions; Status of Implementation of the Prioritised Intervention Areas for the Theme of the 41st SADC Summit of Heads of State and Government; Status of the Implementation Plan of the Regional Indicative Strategic Development Plan (2020-2030) and Operationalization of The SADC Humanitarian and Emergency Operations Centre (SHOC).
Serenity at seas crucial for trade and commerce across SADC, says SA Navy chief Monde Lobese (IOL)
The 29th annual meeting of the Standing Maritime Committee (SMC) of the Southern African Development Community (SADC) has been concluded in Cape Town, and was hosted by the South African Navy. The vision of the SMC is to promote peace and prosperity in the SADC region through maritime cooperation.
Addressing the auspicious event, Chief of the South African Navy, Vice-Admiral Monde Lobese said unlike popular narratives, naval forces are not only needed at times of war. He highlighted that even landlocked nations in the region enjoy the benefits of having proficient naval capabilities in the region.
“Navies are not only there to protect our countries in times of war and conflict. In times of peace, our navies must ensure that there are no threats posed to the free flow of trade. I don’t have to remind our land-locked brothers of SADC that even their commerce and trade flows through the harbours of their coastal neighbours,” he said.
The US has gotten the day to day right in Africa policy. Time to think bigger (Atlantic Council)
The three-day US-Africa Leaders Summit in December brought together high-level delegations from forty-nine African countries and the AU, along with business and civil society leaders. The summit was part of an overall new Africa strategy authored by Judd Devermont, the special assistant to the president and senior director for African affairs at the National Security Council.
The strategy has returned US-Africa policy to the basics, including consistent high-level diplomatic engagement between US and African leaders—and US President Joe Biden pledged at the summit to continue to make that engagement a priority.
The Biden administration is thus far making good on this promise. Treasury Secretary Janet Yellen and Ambassador to the United Nations Linda Thomas-Greenfield have already made official visits to the continent in 2023. Vice President Kamala Harris will travel to Ghana, Tanzania, and Zambia from March 26 to April 1, and Commerce Secretary Gina Raimondo will visit the continent this summer.
Devermont has long argued for this type of consistent, high-level engagement, and it is refreshing to see it operationalized.
African financial institutions will continue to fund fossil fuel projects on the continent (Engineering News)
While Africa is part of the global transition to low carbon energy, the consumption of oil and gas on the continent will increase, at least in the short term. So observed Standard Bank executive energy & infrastructure coverage: East Africa Maina Kigundu at the African Refiners and Distributors Association conference, at the Century City Convention Centre in Cape Town, on Tuesday.
The decarbonization plans of international corporations were affecting investment in Africa. There was decreasing investment in the oil sector, but increasing investment was likely in the liquified natural gas (LNG) sector, he reported.
The Africa Finance Corporation (AFC) would continue to fund fossil fuel projects in Africa, assured AFC senior investment associate Shayo Olumide, speaking at the same conference. The AFC was totally African-owned and funded and had total assets of $10.5-billion. So far it had invested in 36 African countries. “We’re focused on African industrialization,” he stressed. Its five main focus areas were heavy industry; power and renewables; natural resources; transport and logistics; and telecommunications.
Trade and Investment: the current crises are generating opportunities (UNECA)
The Faculty of Legal, Economic and Social Sciences of Souissi, Rabat concluded on March 10 the 14th International Colloquium of Rabat (9-10 March 2023) under the theme: “Trade and investment in a context of crises”.
Key messages included the fact that the current “poly-crisis” i.e. multiple, ongoing crises (geopolitical; health, climate, food and energy-related) are currently redefining the very foundations of resilience and generating a window of “poly-opportunities” for national economies. As a result, decision-makers are currently faced with an opportunity to reorient growth so as to make it greener and more inclusive, accelerate investment in new technologies and integrate more value chains to speed up their own development while helping secure global trade and supply for the rest of the world.
The construction of an integrated and united economic space such as the AfCFTA in Africa is becoming imperative given the deep impact of recent changes such as COVID-19 or the Russia-Ukraine crisis on the global and regional environment, including through the rise in trade tensions and the reconfiguration of supply chains.
Making trade work for climate change mitigation: The case of technical regulations (UNCTAD)
Climate change law instruments - in particular, the UNFCCC and the Paris Agreement - constitute the legal framework within which States set emissions reduction targets and adopt climate mitigation measures to achieve the global target of limiting the increase in global average temperatures to “well below” 2°C.
This legal framework leaves countries free to decide which measures they employ to achieve their targets. However, international trade law - and, in particular, the rules and principles of the WTO - determines when and how States can adopt a measure that potentially impacts international trade, even if such a measure is primarily aimed at tackling climate change.
With a quarter of global CO2 emissions directly or indirectly linked to the production and distribution of traded goods and services (World Bank, 2021), trade-related measures can play an important role in promoting climate change mitigation and adaptation.
Climate change-related trade measures have a significant potential of reducing GHG emissions and are increasingly being adopted. Recent discussions on combustion engine bans or carbon border adjustments have highlighted the far-reaching implications of these instruments.
Plastics Dialogue participants brainstorm on MC13 outcomes, welcome US co-sponsorship (WTO)
The ambassadors of three coordinating members-- Ecuador, China, and Australia-- highlighted the positive spillover effects of the Dialogue, noting it has brought together officials from various members in the fields of trade, environment, customs, and industry. They emphasized the Dialogue’s objective of supporting other significant international initiatives in this area, particularly the ongoing multilateral negotiation process at the UN Intergovernmental Negotiating Committee where participants are seeking to achieve a legally binding instrument by the end of 2024 to put an end to plastics pollution.
The ambassadors encouraged active participation from all participants in shaping the outcomes of MC13, emphasizing the need to incorporate developmental elements and establish a plan for providing capacity building and technical assistance to developing members, in particular small island developing states (SIDS) and least developed countries (LDCs).
Members share experiences on environmental regulations, standards for climate and plastics (WTO)
Two thematic sessions were held together with the Committee meeting. The first thematic session on regulatory cooperation between members on plastics regulation provided an opportunity for members to share experiences and good practices in plastics regulation and policy, which aim to minimize plastics waste leakage and plastics pollution, while encouraging trade and innovation.
While discussing national and regional perspectives, the session also addressed international developments to minimize plastics pollution and plastics waste in the environment and considered how these efforts may necessitate future international cooperation.
The session also highlighted key TBT principles for efficient cooperation such as transparency, public consultation, the use of international standards, the use of data and technical information, technical assistance, development considerations, and the national quality infrastructure that underpins these systems.
The second thematic session on regulatory cooperation between members on climate change focused on the role of regulatory measures in contributing to members’ strategies for tackling climate change.
Fragmentation one of the biggest risks faced by global economy, says UAE minister (The National)
Geographical and economic fragmentation is the greatest danger the global economy faces today and is prompting the drafting of new policies to boost economic integration, Abdulla bin Touq, the UAE’s Minister of Economy, said on Tuesday.
Addressing the Confederation of Indian Industry Partnership Summit 2023 in New Delhi, Mr bin Touq said economic fragmentation was expected to cost the world dearly because “the greater the fragmentation of trade, the greater the economic costs”.
We believe that it is absolutely necessary to address the economic challenges of our times and build a more sustainable and prosperous future for all,” he said.
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SA tyre manufacturers potentially exposed to dumping from China (The Citizen)
Anti-dumping duties against Chinese exporters of car, bus and lorry tyres to South Africa have expired, leaving local producers potentially exposed to far cheaper products that can be dumped on the market. The Chinese manufacturers are also entitled to claim a refund from the South African Revenue Service (Sars) for the 38.3% provisional duties imposed on them since September last year.
The International Trade Administration Commission of South Africa (Itac) imposed these duties for six months pending the finalisation of its investigation into the allegations of dumping. However, the provisional duties lapsed before the investigation was completed.
In terms of World Trade Organisation rules, investigations should be completed within one year, and in no case more than 18 months after initiation. Itac says it has until 29 July to complete its investigation.
Partnership Between Government and Private Sector is Critical in Curbing Youth Unemployment (the dtic)
The Deputy Minister of Trade, Industry, and Competition, Ms Nomalungelo Gina says partnership between the government and private sector is critical in curbing unemployment amongst the youth. Gina was speaking at a graduation ceremony for beneficiaries of the Itukise Programme held in Pretoria.
“In view of the current economic realities in South Africa, it is now clear that the government alone will not be able to combat the continuous increase in the rate of unemployment among the youth. A partnership between the government and the private sector is critical. It is, therefore, necessary for more stakeholders, especially the private sector to collaborate with the South African government to create more job opportunities and by extension, reduce the unemployment rate among the South African youths,” said Gina.
Milk ban: Kadaga writes to Kenyan authorities (New Vision)
Efforts are being made to ensure that the country’s milk exports are not interrupted following the recent notice from Kenya that it plans to cut back on imports from Uganda, First Deputy Prime Minister of Uganda and Minister for East African Community (EAC) Affairs Rebecca Kadaga has said.
Kadaga says she contacted Kenya’s Cabinet Secretary for the East African Community Rebecca Miano and has informed her that if effected, the ban would be damaging to Uganda’s dairy industry and the EAC spirit. She was addressing journalists on Friday (March 10, 2023) during an engagement with the media at the EAC affairs ministry in Kampala.
Dairy Development Authority (DDA) executive director Samson Akankiza also said they have engaged their Kenyan counterparts on the matter.
In a notice dated March 6, 2023, to all milk importers in Kenya, the Kenya Dairy Board (KDB) said it was moving to protect local farmers from external products, as output is expected to increase soon.
“In anticipation of the long rains, the Government has stopped the importation of milk powders to cushion the industry from surplus production and low prices,” a statement signed by KDB managing director Margaret Kibogy says. She adds that the board will no longer issue new import permits until further notice. Though the letter does not state it, analysts believe the notice targets imports from Uganda, which until recently, were being blocked from the Kenyan market.
Nigeria’s Annual Trade Volume Rises to Near Pre-COVID Level (This Day)
The 169 per cent year-on-year increase in trade surplus recorded by the federal government for 2022 has almost put Nigeria’s annual trade volume at the positive threshold of the pre-COVID years, data by the National Bureau of Statistics (NBS) has indicated.
According to the NBS data, Nigeria recorded a N1.2 trillion goods trade surplus in 2022, as export bills (N26.8 trillion) outweighed import earnings (N25.6 trillion) for the first time since the preceding year (N2.23 trillion in 2019).
Nonetheless, the 2022 surplus represents a 162 per cent improvement over the N1.94 trillion goods trade deficit in 2021.
The report also showed that Nigeria’s total merchandise trade in 2022 increased to N52.4 trillion from N39.75 trillion in 2021, while total export value grew by 42 per cent to N26.8 trillion from N18.91 trillion in 2021.
In a report contained in the Cowry Weekly Financial Markets Review & Outlook (CWR), which was released on Friday, analysts noted that the increase in total exports was greater than the increase in total import value, which stood at N25.59 trillion (23 per cent higher than N20.84 trillion in 2021).
According to the report, total trade fell by 4.52 per cent in the fourth quarter to N11.72 trillion, compared to N12.27 trillion in the third quarter of 2022, as total exports exceeded total imports.
MAN Calls For Improved Operating Environment (Leadership News)
The Manufacturers Association of Nigeria (MAN) has emphasised the need for government to critically focus on improving business operating environment and other challenges that have continued to limit the sector’s performance.
The director-general, MAN, Dr. Segun Ajayi-Kadir, said manufacturing is a deliberate effort of governments while emphasising the need for government to incentivise and remove the binding constraints that limit the day-to- day survival of the sector.
“They unfairly compete with the domestic goods. Now we are seeing economies around us perfecting their deals. With the Africa Continental Free Trade Agreement (AfCFTA) and the ETLS, Nigeria borders cannot be closed.
“We cannot have unproductive and uncompetitive manufacturing sector and expect that there will be no inflow of those goods we produce, from outside the country. They unfairly compete with the domestic goods,” he pointed out.
Making trade safer for women cross-border traders in Mozambique and Malawi (World Bank Blog)
One of the narratives surrounding Intra-African trade has been that neighboring countries barely trade with one another. Yet we know that commerce between Sub-Saharan African countries predates the colonial period, when traders, often belonging to the same ethnic or family group, crossed what are now borders to exchange goods and services.
This legacy persists, even though – for reasons that vary from trade barriers and regulatory compliance costs to infrastructure and behavioral constraints – most trade between neighboring African countries is conducted by vulnerable, small, unregistered traders who choose this physically demanding work largely because they lack alternatives.
According to the African Development Bank, this informal cross-border trade provides income for about 43 percent of Africa’s population. So, to discuss Intra-African trade, one must consider its informality, the small size of the traders, and the important role of women.
Let’s take the example of Mozambique and Malawi. An observation of bilateral trade data for the period of 2017-2020 shows that there was little or no trade between the two neighbors for agriculture produce such as sweet potatoes, cassava, groundnuts, cotton seed, tropical fruits, and beans. But during our visits to border posts and markets across the Nacala and Beira corridors – the two main trade routes linking the countries -- after the COVID-19 pandemic, we saw a considerable flow of such agricultural goods, suggesting either that officials weren’t recording the transactions, or that products cross the border in such small parcels that they need not be recorded. These unrecorded transactions are mainly conducted by informal small-scale cross-border traders (SSCBTs) -- up to 80 percent of them women.
Corridor group introduces cargo levy (The Namibian)
THE Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC) has imposed a levy of US$0,90 per tonne on cargo originating from the port of Walvis Bay to sustain operations of a permanent secretariat to be established by January 2024.
This was one of the resolutions made at the 13th WBNLDC tripartite meeting held in Livingstone, Zambia, last week and attended by senior government officials and technical experts as well as the private sector from Namibia, the Democratic Republic of Congo (DRC) and Zambia.
A council of ministers, which consisted of Namibian minister of works and transport John Mutorwa, his Zambian counterpart Frank Tayali, and DRC minister of transport Roger Te-Biasu, signed the agreement on resolutions to address various challenges impacting trade on the corridor.
Other major resolutions agreed were that Zambia ratifies the corridor tripartite agreement by the end of this year, and that Zambia and DRC increase clearance of trucks from 600 to 800 in each direction at Kasumbalesa border, as well as open 24 hours a day.
Slow implementation concern Namibia, Tanzania foreign ministers (New Era)
International relations minister Netumbo Nandi-Ndaitwah said it is vital that Namibia and Tanzania prioritise the speed of pending agreements in various fields which have been identified, as this will strengthen and deepen cooperation between the two states.
Stergomena Lawrence Tax, Tanzania’s minister of Foreign Affairs and East African Cooperation, said her country noted the slow implementation on some of the issues which were agreed upon during the second session. She added that for these sessions to be meaningful to the countries’ relations, there is a need to take the decisions made seriously and tackle the implementation of all agreed issues, as well as to remove the bureaucracy that hinders reaching the targeted milestones.
She added that it is important to make use of the African Continental Free Trade Area (AfCFTA), which came into force in January 2021, to increase trade between the two countries.
“It is an instrument we can use to intensify trade and investment collaboration between our two countries. In pursuance of the common objective, I would like to see Namibian entrepreneurs investing in Tanzania, and those from Tanzania invest in Namibia,” said Nandi-Ndaitwah.
With Africa’s share of the global workforce projected to become the largest in the world by 2100, it is critical for African countries to increase the uptake of digital technologies* to drive employment growth for the more than 22 million Africans joining the workforce each year, emphasizes a new report released today.
The “Digital Africa: Technological Transformation for Jobs” report provides a comprehensive analysis of how digital technologies can enable economic transformation and boost jobs in the region. It also sheds light on how policy and regulatory reforms can widen the availability and increase usage of digital technologies.
Of all the regions in the world, Sub-Saharan Africa (SSA) displays the largest gap between the availability of digital infrastructure and people’s actual usage. On average across countries in SSA, 84% of a given country’s population had at least some level of 3G mobile internet availability and 63% had some level of 4G mobile internet services, but only 22% were using mobile internet services at the end of 2021, according to numbers collected by the Global System for Mobile Communications Association using a methodology focused on unique subscribers. Usage rates range from a low of 6% in South Sudan to 53% in South Africa, underscoring the heterogeneity of average use and the need for differentiated policy reforms across countries.
Building a Connected Africa: The Path to a Single Digital Market and a Prosperous Future (World Bank Blog)
A single digital market across Africa will lower barriers to trade and communication. It will make the internet faster and more accessible. Content and services, hosted on local data centers, will be cheaper to download because they won’t go through expensive international connections. And better access to online communication, banking, or health care can make continent-wide connections with family and friends, businesses and lenders, doctors and patients easier.
Connections to neighboring countries, to regions, and to the entire continent are key to sparking economic growth, creating jobs, and moving Africa into the digital age. Long term, the goals are ambitious: to create a single and secure digital market across Africa alongside free trade areas on the ground. To build regional links that eliminate roaming charges. To improve cross-border trade across the continent by creating the largest free-trade area in the world. This kind of connectivity, both digital and at national borders, was one of the major themes at the 2023 Dakar Financing Summit held in February given that an objective of the African Union is to build a secured single digital market in Africa by 2030, an effort supported by the World Bank’s Digital Economy for Africa (DE4A) initiative.
These goals require large investments in broadband connectivity, secure data infrastructure, and the governmental and legal reforms that can spark competition. Building digital and physical connections by eliminating barriers like broadband coverage gaps, digital illiteracy, and even red tape and paperwork at ports and land borders will allow people and businesses across Africa to reach bigger markets, build businesses, and create jobs.
Africa has realized that the attainment of the shared vision through the continental and flagship programmes such as Agenda 2063 and the 2030 Sustainable Development Goals (SDGs) will require an inclusive growth and sustainable development of Africa through implementation of structural transformation reforms and optimal utilization of its natural resource endowments.
According to the Report of the High-Level Panel on Illicit Financial Flows (IFFs) from Africa, the value of total aggregated illicit outflows surged from approximately USD 4 billion in 1990 to USD 50 billion in 2015. UNCTAD (2020) estimates trade mis invoicing at between USD 30 and USD 52 billion per annum, while capital flight is valued at USD 88,6 billion per annum.
It is also estimated that IFF’s are concentrated in sectors with high value added such as oil, gas and precious minerals. It is therefore a fact, that export-oriented countries are more exposed to the IFFs outflows.
Preliminary findings indicate that curbing IFFs will require strong international cooperation and concerted and articulated actions by developed and African countries in partnership with the private sector and civil society.
A strong and effective domestic resource mobilization, through the fight against IFF, is therefore key for Africa to finance the realization of the aspirations of Agenda 2063 and the attainment of the 2030 SDGs. Under these two comprehensive agendas, Africa has set many strategic objectives and goals that cannot be achieved without investing adequate resources. A wide-mobilizing resources strategy would be able to address efficiently the funding gaps owing to the fact that Africa is one of the resource-richest continents.
However, the continent continues to be ranked as the poorest due to, mainly, poor political and economic governance, political instability and conflicts that constitute the key driving factors behind this failure. As a result, much needed resources have continuously been flowing from the continent in favor of developed countries through well-structured multinational company’s modus-operandi.
AfCFTA Secretariat and Afreximbank Sign AfCFTA Adjustment Fund Host Country Agreement with the Republic of Rwanda (Afreximbank)
The AfCFTA Secretariat and African Export-Import Bank (Afreximbank), on 10 March 2023 in Kigali, signed the Host Country Agreement for the AfCFTA Adjustment Fund with the Republic of Rwanda. The Agreement paves the way for the operationalisation of the AfCFTA Adjustment Fund.
The US$10 billion Fund, headquartered in Kigali, Rwanda, is a critical instrument in the realisation of the African Continental Free Trade Area. It will help countries to implement agreed protocols and support African companies to retool for effective participation in the new trading regime. The AfCFTA Adjustment Fund will support AfCFTA State Parties to adjust smoothly to the new liberalised and integrated trading environment established under the AfCFTA Agreement by mitigating the potential adverse impacts of AfCFTA-induced tariff revenue losses. Also, the Fund will help to address the infrastructure deficits and supply chain bottlenecks to the implementation of the African Continental Free Trade Agreement.
Post Mortem: Webinar Women and gender equality in the operationalization phase of the AfCFTA (UNECA)
On March 6, 2023, the sub regional Office for Central Africa of the UNECA (ECA/SRO-CA) held a webinar on Women and gender equality in the operationalization phase of the AfCFTA.
The webinar which gathered more than 90 stakeholders from the private sector, the public sector, civil society organizations, international organizations, and academia, aimed at providing a platform for discussion around the challenges women entrepreneurs and women engaged in intra African trade face, the opportunities of the AfCFTA, and expectations regarding UNECA’s support to ECCAS and its Member States in this regard.
Among the main recommendations: the need for capacity building and awareness raising on the objectives, opportunities, and challenges of the AfCFTA for women; the need to collect disaggregated data capturing intersecting inequalities as women are not a homogeneous group; and the relevance of working closely with existing platforms in the sub-region that support women in their efforts.
Harnessing regional trade to grow African fine coffee markets (ITC)
“We all know that most African coffee producers live below the minimum subsistence income,” said Enselme Gouthon, president of the African and Malagasy Robusta Coffee Agency, “so it’s crucial to find an innovative model to capture more value from the first processing stage.”
He was speaking to the World Coffee Producers’ Forum in Kigali, Rwanda, where no one needed the reminder. Most in attendance are actively seeking to change that reality, by finding ways to add value to coffee in the countries where it’s grown.
A few days later, 955 people from around the world gathered to explore solutions, products and trends at Africa’s largest coffee trade platform, the African Fine Coffees Conference & Exhibition (AFCA).
African producers at AFCA tend to export green coffee. This year, ITC and its partners went against the grain by bringing five Ethiopian fine coffee producers. Four of them process and sell their own roasted coffee – a rarity on the continent.
The Republic of Botswana has signed the Charter establishing the Southern African Development Community (SADC) Fisheries Monitoring Control and Surveillance Coordination Centre (MCSCC) on 9th March 2023.
Botswana has become the 11th signatory of the Charter, meaning the Region has reached the required two-thirds threshold for the Charter to enter into force in order for the MCSCC to be established to assist the Region in prioritising the protection of fisheries to underpin greater benefits and blue economy growth. Angola, Eswatini, Lesotho, Madagascar, Malawi, Mozambique, Namibia, South Africa, the United Republic of Tanzania, and Zambia have already signed the Charter..
The MCSCC will coordinate regional fisheries data and information sharing services, a regional fishing vessel register, provide fisheries surveillance services, coordinate fisheries observers and support the implementation of port state measures, provide fisheries enforcement and legal support services, and support improvements in the capacity of national Monitoring Control and Surveillance (MCS) systems.
How sustained improvement on visa openness impacts intra-African travels, exchanges (Businessday)
If you consider the fact that Africa receives a mere 4.8 percent of the over one billion tourist arrivals in the world and 3.3 percent of the receipts, it means that the continent is not at the heart of the global tourist market, despite being taunted as the last tourism frontier of the world today.
The worst is that intra-African travels have not performed well until recently, when some concerned African countries, corporations and tourism thought-leaders started making concerted efforts at growing tourism on the continent, starting from within. However, the efforts at growing tourism within are yielding results with improvements on intra-African travels as captured in the 2022 Africa Visa Openness Index report.
EAC states in stalemate over hosting of key institutions (The East African)
The East African Community Council of Ministers have again failed to agree on the host of the proposed monetary union headquarters and other key organs.During the last meeting held in Bujumbura, Kenya, Uganda, Tanzania and Burundi, who have bid to host crucial institutions failed to agree on the way forward as each country sought more time for consultations.
Uganda protested the decision by the EAC verification committee to rank Tanzania as the most suitable to host the East African Monetary Institute last year and called for a review.
The DR Congo and South Sudan are also keen on hosting EAC institutions, triggering the debate on how to evenly distribute the bloc’s institutions and organs, including the East African Legislative Assembly (EALA) and the East African Court of Justice (EACJ) which are temporarily housed in Arusha, Tanzania.
Tanzania and Uganda are the only two partner states to host more than one EAC institution. Kenya, Rwanda and Burundi host one each.
Why East Africa refugees remain financially underserved (The East African)
Properly integrating displaced populations within a host country’s financial system invites often thorny political issues and private sector players are erring on the side of caution.
There has been progress in providing financial solutions to displaced populations, particularly in stable contexts where business and personal financial interests are protected by governments and civic institutions and personal identities are more entrenched. But in the contexts where refugees struggle with instability, little documentation, a tenuous status or few financial links, those strides can vanish.
As politics sometimes place insurmountable complications for even well-designed solutions, expanding financial inclusion to displaced individuals in difficult locales requires a shift in approach that integrates both refugee and solution within a wider market.
Ghana and EU commit to deepening cooperation (BusinessGhana)
Ghana and the European Union (EU) have committed to deepening cooperation at the 2023 Session of the Ghana-EU Political Dialogue held at the Ministry of Foreign Affairs and Regional Integration on Wednesday 8th March, 2023. This year’s session is an opportunity for Ghana and the EU to assess the progress made on the implementation of the outcome of the previous year’s Dialogue.
It also highlights the joint visions of the two sides and explores opportunities for cooperation in the thematic areas outlined in the agenda for the Dialogue.
Tricks of the trade: Strengthening EU-African cooperation on trade in services (ECFR)
Services are increasingly important for international trade, accounting for about half of global trade flows. Trade in services is growing more rapidly than trade in goods. Trade in services is critical for improving the competitiveness of African economies, increasing their participation in regional and global value chains, and promoting inclusive growth. Improved trade in services with African countries could help the EU diversify its supply chains, strengthening resilience and reducing dependencies on China and other Asian countries.
The cooperation on domestic regulatory frameworks required for trade in services can promote a shared understanding of regulatory goals and standards between the EU and Africa across many sectors.
None of the trade agreements between the EU and African countries currently covers services, and only one African country is part of the WTO Joint Initiative on Domestic Services Regulation. There is therefore no dedicated platform for cooperation on services regulations.
EU Announces New Rules For Air Import Shipments (Leadership)
The European Union has kicked off the second phase of its Import Control System 2 (ICS2). The new advance cargo information and risk management platform was set up to protect against security and safety threats from goods entering the EU. From 1 March 2023, all air carriers, freight forwarders, express couriers, and postal operators involved in the transportation of goods by air to or through the EU must provide a complete set of Entry Summary Declaration data on the goods, prior to their arrival at the EU external border.
Climate change adaptation should be Africa’s priority (The East African)
The annual UN climate talks in Egypt last month were a breakthrough for the developing world. For the first time, participants agreed to create a “loss and damage fund” to compensate poor countries for the harm caused by global warming.
The idea that rich countries should compensate poorer ones for a problem created by the industrialised world is not new. The tiny island state of Vanuatu first mooted such a scheme in 1991. But the clamour for climate reparations has grown louder as devastation has swept around the world.
Doha Political Declaration adopted by world leaders to fast-track progress in least developed countries (Down to Earth Magazine)
The Fifth United Nations Conference on the Least Developed Countries (LDC5) concluded with adoption of the ‘Doha Political Declaration’ by the world leaders. The declaration made by the head of the states is a key outcome of the second part of LDC5 conference held under the theme “From Potential to Prosperity” at Qatar from March 5-9, 2023.
DPoA (2022-2031) consisted of six key focus areas including eradicating poverty, leveraging the potential of science and technology to fight against multidimensional vulnerabilities and to achieve the SDGs, addressing climate change, environmental degradation, recovering from COVID-19 pandemic and building resilience against future shocks for risk-informed sustainable development.
“Around 25 developing economies are spending over 20 per cent of government revenues solely on servicing debt,” said UN Secretary-General António Guterres in his statement at the conference.
The political declaration made at Qatar is significant since it comes amid simultaneous global risks of rising cost of living and inflation as well as climate change impacts.
Inclusive access to digital technologies and education is crucial to reducing gender inequalities and empowering rural women and girls – that was the message from three United Nations’ food and agriculture agencies as they marked International Women’s Day 2023.
Participants at the event recognized that while digitalization on its own cannot solve all the gender-related disadvantages women face, if provided with equal access to digital technology and education, women can have a more active and effective role in our agrifood systems.
“Without increased access to digital technology and innovation, rural women and girls will continue to face barriers and socio-economic disadvantages, making it harder for them to fully participate in rural economies,” said IFAD Associate Vice-President Jyotsna Puri.
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IMF Staff Completes 2023 Article IV Mission to Eswatini (IMF)
“Eswatini’s economy was comparatively resilient through the pandemic. Following a strong rebound of 7.9 percent in 2021, real GDP growth stagnated in 2022, at 0.4 percent. This reflects the continued dampening effect from civil unrest, government payment arrears, slowing growth in South Africa, and heavier than normal rainfall and industrial action on the sugar sector. Headline inflation rose to 5.6 percent at end-2022 due to higher food and transport prices. The government fiscal deficit is projected to widen to 5.4 percent of GDP by end-FY22-23 in the wake of lower SACU revenues and higher government spending. In the balance of payments, the current account balance has shifted to an estimated deficit of about 1.1 percent of GDP as the trade balance was negatively affected by higher import prices. Foreign reserves declined to $449 million, equivalent to about 2.3 months of import cover.
Mozambique Wants to Become Middle Income Country (allAfrica)
Mozambique intends to become a middle income country by 2030, leaving behind the indicators that characterize the least developed countries. Prime Minister Adriano Maleiane announced this intention at the end of the 5th United Nations Conference on the Least Developed Countries, which took place in Doha, capital of Qatar.
“The transition will not be fast. It is going to be gradual so that our new system can develop with security’, Maleiane said, explaining that the transition to another level carries consequences because international support to Mozambique, as a least developed country, will cease.
Manufacturers, private sector ask govt to engage Kenya over ban on powder milk (Monitor)
Uganda Manufacturers Association (UMA) and the Private Sector Foundation Uganda have appealed to government to engage its counterparts in Kenya over its decision to unilaterally ban importation of powdered milk products. The appeal follows a letter in which Kenya Dairy Board ordered for an indefinite suspension of milk powder imports. In a March 6 letter, Kenya Dairy Board said the expected rains this month will significantly boost milk production, thus reducing the need for imports.
“In anticipation of the long rains, government has stopped importation of milk powders to cushion the industry from surplus production and low producer prices,” Ms Margaret Kibogy, the Kenya Dairy Board managing director, wrote, noting that the board had temporarily suspended the issuance of milk import permits until further notice.
Mozambique Economic Update: Why Services Matter for Growth and Jobs (World Bank)
Mozambique’s economic recovery is picking up steam, with growth reaching 4.1% in 2022, despite global economic headwinds marked by rising fuel and food prices. The medium-term economic outlook is positive, with growth expected to accelerate to 6% over 2023-2025, driven by continued recovery in services, increased liquefied natural gas production, and high commodity prices. However, downside risks linked to climate shocks, security risks, and food and fuel price pressures could lower medium-term GDP growth to 4.5%.
The 9th edition of the World Bank’s Mozambique Economic Update (MEU) highlights the role of services in accelerating economic growth and job creation. The report calls for a shift from reliance on low-productivity agriculture and extractives to a development model based on diversified sources of growth, productivity, and jobs. It further outlines reform options to strengthen the role of the services sector as a backbone of the economy.
Uganda plans to start nuclear power generation by 2031 - minister (ZAWYA)
Uganda said on Thursday it expects to start generating at least 1000 megawatts (MW) from nuclear power by 2031 as it moves to diversify its sources of electricity and accelerate its energy transition, a key part of its climate change response.
Uganda has uranium deposits and President Yoweri Museveni has said his government was keen to exploit them for potential nuclear energy development. The east African country has signed a deal with China under which the China National Nuclear Corporation (CNNC) would help Uganda build capacity in the use of atomic energy for peaceful purposes.
Kenya and Egypt to establish Visa Free Entry from April (Capital News)
Kenya and Egypt have agreed to establish free visa entry for diplomatic and official passports holders from April 1. Foreign and Diaspora Affairs Cabinet Secretary Alfred Mutua stated that they are working together to finalize a 100 percent visa free regime between both countries for ordinary passports within six months by October 1, 2023.
“In line with the African vision of AfCFTA (African Continental Free Trade Area) we agreed on Free visa entry for diplomatic & official passports of both countries from April 1st of this year and to start and finalize discussions towards a free visa regime for ordinary passports by October 1,” he said.
“This will enhance tourism, grow trade and support economic free flow of people and goods as envisioned by the African Continental Free Trade Agreement.”
Egypt backs out of UN grains treaty, sparking concern (I24NEWS)
Egypt’s withdrawal from the Grains Trade Convention follows a period of turmoil in grains markets linked to Russia’s invasion of Ukraine. Egypt recently gave notice that it will withdraw by the end of June 2023 from a decades-old UN grains treaty, causing angst among other signatories to the convention.
The departure of Egypt – one of the world’s largest wheat importers – from the multinational Grains Trade Convention (GTC) follows a period of turmoil in grains markets linked to Russia’s invasion of Ukraine and concerns about global food security.
Egypt signed the GTC, the only international treaty covering trade in grains and which promotes market transparency to further trade cooperation, at its inception in 1995, and has been a member of the council that governs it since 1949.In February, it submitted a request to withdraw with effect from June 30, 2023.
Namibia, South Africa sign 90 trade deals (The Namibian)
NAMIBIA has signed more than 90 bilateral agreements with South Africa. This was announced at the opening of a meeting of senior officials during the third session of the Namibia/South Africa Binational Commission in Windhoek yesterday.
Penda Naanda, the executive director of international relations and cooperation, said the number of bilateral agreements signed between the two countries is remarkable, and that the implementation of these agreements should be key.
Naanda said there is a vital need to turn the vast resource potential between the two countries into bankable and practical actions that would positively change the living conditions of people from both countries.
Young people are innovators and change makers (SAnews)
Young people are change makers and agents of progress, President Cyril Ramaphosa says. “As young people, you demand to be part of decision-making and shaping a future that is yours,” said the President on Friday. He was speaking at the inaugural Nelson Mandela Youth Dialogue at the Walter Sisulu University in Mthatha in the Eastern Cape, a platform for young people within the African continent to engage in constructive discussions on pressing socio-economic issues such as leadership and governance, free trade, labour migration and a just energy transition.
The dialogue brought together young people from 20 African countries including, among others, South Africa, Algeria, South Sudan, Cote d’Ivoire, Zimbabwe, Mozambique and Kenya and leaders from government, business, labour and civil society.
Africa and Global Economic Trends – January 2023 (AfDB)
In January 2023, out of 36 African currencies reviewed, 29 currencies depreciated against the USD on annual basis, while 7 currencies recorded appreciations (see Table 19). The highest currency depreciation against USD was recorded for the Zimbabwean Dollar at 57.5 percent. Of the seven currencies that recorded appreciations against the USD, the highest appreciation at 5.0 percent was recorded for the Guinea Franc.
On a monthly basis, between January 2023 and December 2022, 19 currencies depreciated against the USD, one remained unchanged, while the rest appreciated. The highest monthly depreciation against the USD was recorded for the Egyptian pound at 22 percent, while the highest appreciation against USD was for Madagascar’s Ariary at 4.4 percent.
Is the U.S. falling behind China in Africa’s lithium industry? (CNBC)
The demand for lithium is rising as it has become a critical component needed in electric vehicle batteries. In 2021, the world produced 540 thousand metric tons of lithium and by 2030 the World Economic Forum projects the global demand will reach over 3 million metric tons.
Reserves of lithium have been discovered throughout the entire African continent with Zimbabwe, Namibia, Ghana, the Democratic Republic of the Congo and Mali all having notable supplies. The price of lithium has skyrocketed. In May 2022, the price was seven times higher than it was at the start of 2021. Mineral-rich nations like Zimbabwe are taking note.
Zimbabwe has been mining lithium for 60 years and the government estimates that its Chinese-owned Bikita Minerals Mine, which is located 300 kilometers south of the capital Harare, has about 11 million metric tons of lithium resources. The country is the sixth largest producer of lithium, and the International Trade Administration projects that once it fully exploits its known resources it could potentially meet 20% of the world’s demand.
COMESA, partners hold high-level engagement on sidelines of CSW67 (COMESA)
COMESA, the East African Community (EAC) and the Economic Community of West African States (ECOWAS), the three regional economic communities which are jointly implementing the 50 Million African Women Speak digital platform (50MAWSP), held a high-level partners engagement on Wednesday 8 March to mobilise support for the next phase of the initiative.
The dignitaries took turns to emphasize the importance of 50MAWSP as a viable tool for the empowerment of women and appealed to partners to support its transformation, citing its untapped potential to create economic opportunities for women and youth. The speakers at the event unanimously agreed that undertaking significant platform feature enhancements would be key to unlocking this potential.
“The recommendations that have consistently featured in the feedback from users include the integration of e-commerce to enable the women to trade with each other on the platform, enhancement of the platform to support live trainings to build the capacity of women to manage their businesses better, integration with financial services providers to allow users to seamlessly access credit, for example by requesting loans in-platform,” COMESA Secretary General HE Chileshe Mpundu Kapwepwe said.
air cargo Africa’s sixth edition concludes in Johannesburg, South Africa (Air Cargo News)
The sixth edition of air cargo Africa, the continent’s most popular exhibition and conference for the air freight industry, concluded on Thursday February 23 at the Emperors Palace Convention Centre in Johannesburg, South Africa.
air cargo Africa 2023 curated a meaningful experience for all participants with various touch points to exchange knowledge and ideas, as well as an opportunity to unlock value through partnerships. Some of the key conference topics covered logistics for the pharma and automotive supply chains, flowers and perishables, e-commerce, among many others.
Considering the expanding commercial opportunities on the African continent due to rising economic activity, fast adoption of digital technologies, and growing trade ties with the world, international air cargo service providers expressed strong interest to do business with Africa at the sixth edition of this trade fair.
ECOWAS: Gender inequality becoming alarming with technology advancement (TheCable)
Frances Ibanga, president of the women’s forum of the Economic Community of West African States (ECOWAS), says gender inequality is becoming alarming with the advancement of technology. Ibanga spoke on Wednesday at the women’s forum of the ECOWAS community court of justice to mark International Women’s Day (IWD).
“Framework for the protection and promotion of the rights of women are provided for in the ECOWAS vice treaty and annex protocols and convention,” Ibanga said. “This day provides a useful opportunity to reinforce the fact that everyone has a role to play in forging a more gender-balanced world and the importance of treating women fairly and equally, without any bias or prejudice. “This theme – exploring the impact of the digital gender gap widening economic and social inequalities – aims to highlight the importance of protecting the rights of women in digital spaces and the need to address ICT gender-based violence.
The upcoming Cemac Head of States summit will address major challenges within the community (Business in Cameroon)
The next summit of Cemac Head of States will take place next March 17 in Yaoundé, we learned from a letter signed by Daniel Ona Ondo, the President of the CEMAC Commission. Cameroon’s President and current President of CEMAC Paul Biya also sent invitation letters to his counterparts through his collaborators.
A Council of Ministers of the Central African Monetary Union (Umac) is scheduled for March 15, ahead of the actual summit. The preliminary workshop will discuss topics to be addressed during the summit, including the implementation of the Economic and Financial Reform Program (Pref-Cemac), the evolution of the rationalization process of the Central African Regional Economic Communities (Economic Community of Central African States -CEEAC, Economic and Monetary Community of Central Africa -Cemac, and the Economic Community of the Great Lakes Countries -CEPGL); the CFA reform; the Russia-Ukraine war, cryptocurrencies, and appointments within Cemac bodies and institutions, given that some have reached the end of their terms.
Africa losing out for failing to own patents for drugs it makes (The East African)
Health experts have advised that African governments would have to ensure that they own the intellectual property (IP) rights of vaccines and drugs manufactured in their countries if they are to accrue tangible gains from the drug making momentum building on the continent. Although, some African states have invested in research and development of vaccines and medicines, they have ended up relinquishing or selling IP rights to foreign firms, setting the vaccine manufacturing efforts back.
Because of this, the African Union is, for instance, pushing to get back the IP technologies from the firms that bought them, which has proved to be an uphill task.
Global food crisis may persist with prices still elevated after year of war (IMF)
One year after Russia’s invasion of Ukraine upended agricultural commodity markets, food prices remain elevated even after retreating from their record highs in early 2022.
With two of the world’s largest exporters of wheat and other crucial crops entering a second year of war, many vulnerable countries still face heightened food insecurity. Fragile and conflict-affected states, home to 1 billion people, are at particular risk.
Eleven straight monthly declines have pushed food prices down 19 percent from a peak last March, the Food and Agriculture Organization of the United Nations said Friday.
Leveraging South-South cooperation to finance the SDGs (Observer Research Foundation)
The achievement of the Sustainable Development Goals (SDGs)—which lay the foundations for lasting peace, prosperity and environmental sustainability in a globally connected world—remains more relevant than ever. The achievement of SDG1 on poverty and extreme poverty, for example, together with SDG8 on employment and decent work, are crucial to maintaining political stability and containing social tensions in the developing world, preventing dangerous slides of poverty-stricken areas into radicalism that in turn have repercussions on regional and global security. In the oil-rich Niger Delta in Nigeria, the combination of shortages in basic services provision by the central and local governments, pervasive poverty, and high youth unemployment, has created a breeding ground for piracy and robbery attacks on the oil industry. The insecurity, in turn, deters development and reinforces a vicious circle of poverty. At the community level, fights erupt among the poor who compete for limited resources such as water and land, deterring productive economic activities. Indeed, poverty from unemployment can create conditions for insecurity and extremism, in turn leading to conflicts; conflicts fuel even more poverty.
Seychelles is first WTO member from Africa to formally accept fishing subsidies agreement (WTO)
Seychelles’ Minister for Fisheries, Mr Jean-François Ferrari, and the Minister for Finance, National Planning and Trade, Mr Naadir Hassan, said in a joint statement: The Agreement on Fisheries Subsidies presents a significant opportunity for Seychelles to promote sustainable fishing practices, protect its marine resources, and to aid in the conservation of fish stocks globally, especially within the African region. By depositing its Instrument of Acceptance, Seychelles reinforces its commitment to multilateralism and ensuring that concrete steps are taken towards limiting harmful subsidies that contribute to overfishing as set out in Target 14.6 of the UN Sustainable Development Goals whilst empowering and supporting coastal communities as they transition towards truly sustainable practices.”
Secretary-General calls for more engagement with Least Developed Countries to correct severe economic imbalance (The Commonwealth)
During the UN LDC conference, the Commonwealth Secretary-General spoke at the launch event for the LDC5 Monitor which is an independent partnership to monitor and assess the implementation of the Doha Programme of Action (DPoA) and provide suggestions on how international support measures should be adapted to better support LDCs. The Commonwealth Secretary-General, Rt Hon Patricia Scotland KC, has advocated for increased international support for Least Developed Countries (LDCs) at a UN conference in Doha, Qatar this week.
Competitiveness of Global Aluminum Supply Chains Under Carbon Pricing Scenarios for Solar PV (World Bank)
As technology now stands, there is—and will be—no solar power without aluminum, which accounts for over 85 percent of solar photovoltaic (PV) technologies.
While the aluminum industry counts many producers, production capacity has plummeted in many countries in the last decade because of low global prices and intense competition. At the same time, high capital, energy, and input costs have limited the development of new aluminum production.
A new report by the World Bank’s Climate-Smart Mining (CSM), Competitiveness of Global Aluminum Supply Chains Under Carbon Pricing Scenarios for Solar PV, examines aluminum competitiveness in the context of potential carbon prices.A key takeaway is that and ensuring that producers, including in low- and middle-income countries, can compete in an increasingly carbon-constrained world.
Least developed states’ summit ends in Doha with no massive aid pledge - UN (Africanews)
The 5th United Nations Conference of the least developed countries closed in Doha on Thursday (Mar. 9). It saw nations pledge to donated funds. Among them Germany, announced $200 million for the least developed countries, Saudi Arabia, who is donating $800 million, and Canada offering UNICEF $34 million.
Guterres started the summit by saying the 46 poorest states need a $500 billion a year stimulus to reach the UN sustainable development goals (SDGs), a blueprint to end poverty and boost health and education by 2030. That goal was not met.
Multilateral lenders need to step up to the global ‘polycrises’ (African Business)
The world is at a crossroads: one where the choice is between investing in a better, more secure and prosperous future for all of us or a continued cycle of crisis and breakdown. Overlapping issues facing countries today, including the war in Ukraine, natural disasters, climate-related catastrophes, soaring inflation and a deepening debt crisis, coupled with continued global economic challenges are pushing many lower income countries to the brink. Failing to deal with these converging crises is only deepening the struggle in both advanced and developing economies. But for developing economies who were already struggling to provide education, food, and health services, the struggle today is even greater.
In part, this highlights a failure by global financial institutions specifically designed to tackle crises and poverty.
African debt distress was already a growing concern before the current polycrisis, but it has no doubt exacerbated it. Increased borrowing to respond to growing needs, higher interest rates and a strong dollar have all accelerated the next debt crisis.
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Provisional duties on imported tyres from China expire, but Itac investigation continues (Engineering News)
The International Trade Administration Commission of South Africa (Itac) has provided an update on an investigation it is leading into the alleged dumping of new pneumatic rubber tyres used in motor cars and on buses and lorries, originating in or imported from China. Itac gazetted a notice of the investigation in January.
The application was lodged by the South African Tyres Manufacturers Conference (SATMC), representing its members – Bridgestone, Continental, Goodyear and Sumitomo. These firms account for all domestic production of these products in the Southern African Customs Union (Sacu) region.
The investigation was initiated after Itac determined that there was prima facie evidence that the products were being imported into Sacu at dumped prices, causing material injury and threatening to cause material injury to industry in the Sacu region.
South African economy sinks below pre-Covid levels (The East African)
South Africa’s economy tumbled below pre-pandemic levels in the last three months of 2022 as record power shortages hit activity, official data showed Tuesday. The gross domestic product of Africa’s most industrialised country contracted by 1.3 percent in the fourth quarter, worse than expected by analysts. “After rallying in the third quarter of 2022 ... GDP fell below pre-pandemic levels,” said the national statistics agency StatsSA. The economy had expanded by 1.6 percent in the July-to-September period.
Growth in Africa’s most industrialised country was weighed down in the final quarter by unprecedented levels of power outages.
The trade and finance sectors were the biggest drags to the economy’s growth between October and December, with exports decreasing by 4.8 percent. Mining agriculture and manufacturing also slumped.
South Africa’s economy was badly hit by the Covid-19 pandemic, which amplified joblessness and poverty in one of the world’s most unequal countries. Economic growth had slowed for about two years.
Nigeria must build capacities to attain economic transformation, says expert (The Guardian Nigeria)
Senior Special Adviser to the President of Africa Development Bank (AfDB), Prof Oyebanji Oyelaran-Oyeyinka, has advocated that Nigeria and other African countries must embark on building and developing national productive capability to attain economic transformation.
Oyelaran- Oyeyinka, who is also a development economist, stated this while delivering a lecture titled: “Building innovation capabilities for economic transformation in a post-pandemic world”, at the maiden NigeriaLics conference hosted by the University of Lagos (UNILAG).
“The failure to properly diversify the economies made most poor countries suffer hardships during the pandemic. All mineral-dependent economies suffered the most during the outbreak of COVID-19,” he said.
Ghana exports 31,922mt fertiliser in 2022 (Ghanaian Times)
Ghana exported a total of 31,922 metric tonnes (mt) of fertiliser in 2022 compared to 1,244mt in 2021, the 2022 Fertiliser Trade Statistics have revealed. The statistics also stated that out of a total of 486,203mt imported last year, 459,513mt were consumed by farmers as compared to 239,062mt and 242,334mt imported and consumed respectively in 2021.
He said there were shortage of fertiliser in those countries and also they did not have the raw materials to produce the fertiliser blends, “so they had to fall on us to supply to them.”
Kenya Dairy Board suspends milk powder imports ahead of long rainy season (Capital Business)
Kenya Dairy Board (KDB) has suspended the importation of milk powder to cushion local producers ahead of the long rainy season of March to May. The directive will apply to all importers in the country. KDB’s decision comes at a time when milk producers across the country expect high yields with the start of the rain.
“The board has temporarily suspended the issuance of these import permits until further notice,” KDB managing director Margaret Kibogy said in a statement seen by Capital Business. “We will however continue to monitor the production and demand for milk and milk products in the country and advise the government accordingly,” Kibogy added.
In Guinea-Bissau, Economic Growth Depends on Strengthening Gender Equality and Education (World Bank)
Guinea-Bissau has the highest proportion of natural wealth per capita in West Africa. However, poverty remains widespread, with high levels of inequality and increasing rural-urban disparities, while human development indicators remain among the lowest in the world, and low access to basic services contribute to exclusion and marginalization.
The structure of the economy in the country has barely changed in the last two decades and is almost entirely dependent on a single crop of cashew, which accounts for 90-98% of total export earnings. Agriculture accounts for more than 45% of GDP and employs 80% of the labor force, mainly women. The poorly diversified economy makes the country highly vulnerable to global shocks and adverse climatic conditions.
The Executive Secretary of the Southern African Development Community (SADC) His Excellency Mr Elias M. Magosi has reiterated SADC’s commitment to the advancement of gender equity in innovation and technological change and to the empowerment of all women and girls in the SADC region.
While recognising that advancements in digital technology offer immense opportunities to address development challenges, H.E. Magosi said it is regrettable that the opportunities of the digital revolution present a risk of perpetuating existing patterns of gender inequality, with growing inequalities becoming increasingly evident in the context of digital skills and access to technologies, whereby women are left behind as the result of this digital gender divide.
In order to promote Women’s empowerment, address gender stereotypes, and explore how to embrace equity, the SADC Executive Secretary underlined the importance of implementing the provisions of SADC instruments that seek to elevate women’s participation in innovation and digital technologies.
SA to work with BRICS countries to advance African agenda (SAnews)
Through its chairship, South Africa will work with its BRICS partners to advance the African agenda for growth, development and integration and to advocate for the needs and concerns of the Global South. President Cyril Ramaphosa echoed these sentiments while updating Parliament on state capability for economic recovery and the fight against crime on Thursday in Cape Town.
South Africa is chairing the BRICS group of countries in 2023 under the theme: “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism”.
“We are focusing in particular on opportunities that will generate economic growth on the continent, particularly through the African Continental Free Trade Area (AfCFTA) and infrastructure,” the President said.
With US making ‘game changing’ moves, China steps up African economic ties (South China Morning Post)
China is again increasing economic support for Africa after decades of building infrastructure and extracting minerals to match a new US bid for influence on the continent that depends heavily on foreign help.
President Xi Jinping said in a mid-February message to the 55-member state African Union that China was willing to “enhance cooperation” and “facilitate coordination” in international and regional affairs. Chinese state media reports have noted agriculture, trade and more infrastructure as priorities from 2022 onwards.
The African Development Bank and the Coalition for Dialogue on Africa (CoDA) have officially launched a three-year support project to improve regional coherent and coordinated response to illicit financial flows. The project will help African stakeholders actively engaged in stemming such flows to improve domestic revenue mobilization in African countries.
The launch of the African Financial Integrity and Accountability Support Project (AFIAP) took place at the African Union headquarters on 7 March. The project aims to improve regional coordination of combating illicit financial flows and the oversight and accountability of public finances, for optimal revenue mobilization and management in African countries. It will support the coordinated implementation of recommendations of the High-Level Panel on Illicit Financial Flows and the implementation of joint strategies and initiatives related to international taxation.
Africa must increase its share of global seed trade – AFSTA (The Herald)
Africa must target to increase its share of the total global seed trade value through easing barriers to the movement of quality seed between countries on the continent and to those outside. The call was made at the just-ended 23rd African Seed Trade Association (AFSTA) annual congress which was held recently in Dakar, Senegal.
“Listening to various speakers, some three major lessons came out of the meeting. Africa must up its game to claim a bigger stake in the trade sector, we are not worth the 2 percent contribution we currently contribute,” AFSTA spokesman Aghan Daniel said. “Two, governments must ease seed movement across the continent. Three, seed companies in Africa must confront climate change henceforth.”
“We need a favourable regulatory policy environment to trade – including a simplified process of variety registration, affordable DUS trials and a favourable business environment to do business. We also need to strengthen regulation and enforcement of intellectual property rights and plant breeding,” said Dr Kulani Machaba, president of AFSTA.
Africa’s development suffers as West prioritises aid to Ukraine (The East African)
Africa is bearing the brunt of the war in Ukraine and remains ill-prepared to deal with the shocks linked to the crisis, including rising food and fuel prices as well as limiting access to critical imports such as wheat, fertilizer and steel. The war in Ukraine is consuming immense resources from the West and there is increasing pressure on international and multilateral institutions to channel more funding to reconstruction of Ukraine, which is likely to affect the flow of development finance that African countries urgently need.
“The Ukraine situation has turned things more less upside down. We are probably going to be hit hardest; still difficult at the moment,” Rwanda President Paul Kagame told a press conference on Wednesday. He noted that many of Africa’s development partners are now focused on the war in Ukraine.
Horn of Africa roots for infrastructure to grow trade (The Star)
Horn of Africa (HoA)countries have agreed to support shared infrastructure projects to boost free trade. Speaking in Nairobi on Wednesday at the 15th Roundtable meeting of Finance Ministers, exchequer chiefs from the six countries led by Kenya’s Njuguna Ndung’u committed to finalising mutual infrastructure projects in the next five years. ”Trade is a game of numbers. We have close to 200 million people market, dense human resources and plenty of natural resources. It is time we bring this to the continental business table,’’ Njuguna said.
Kenya, Ethiopia, Djibouti, Somalia and Eritrea agreed to relook at their individual trade agreements and identify areas of collaboration to ease the cost of doing business for their traders while capitalising on gains originating from diverse markets.
West African Economic and Monetary Union: Selected Issues paper (IMF)
Digitization best path to inclusion of African women in labor force (China Daily)
African countries on Wednesday marked International Women’s Day with a call to bridge the gap in women’s and girls’ adoption of digital technology in order to include African women in the modern labor force. This year, International Women’s Day focuses on celebrating women driving digital innovation and technological advancement.
While giving her statement to mark the day, Matshidiso Moeti, the World Health Organization’s regional director for Africa, said in the African health sector women can be innovators and contribute to transforming the health of all people on the continent.
“According to a 2021 report by the Association of Mobile Operators, inadequate infrastructure, lack of digital skills for the internet and information communication technologies, and gender-related barriers around access to and control over resources are the main obstacles to meaningful connectivity for women and girls,” Moeti said.
She pointed out this challenge can be addressed by creating awareness about the digital gender divide, advocating for policies and legal frameworks to keep women and girls safe and promoting women’s participation in science and information communication technologies.
Many women producers, processors and traders in the agri-food sector in Africa face challenges when working in the informal sector, complying with legal requirements, and accessing market information, training, and finance, among other issues. This month, the Food and Agriculture Organization of the United Nations (FAO) and the International Trade Centre (ITC) under its SheTrades Initiative launched the second phase of its programme: Empowering women and boosting livelihoods through agricultural trade: Leveraging the African Continental Free Trade Area (AfCFTA).
Spanning four countries – Ghana, Malawi, Nigeria and South Africa –, the programme was developed in 2021 to promote women’s participation in the AfCFTA and increase their access to capacity building and higher-productivity activities, capitalizing on the new opportunities in regional trade created by the AfCFTA agreement.
African leaders have made the case for increased investment in technology and innovation to accelerate the implementation of Sustainable Development Goals (SDG).
The 9th Session of the Africa Regional Forum on Sustainable Development (ARFSD), held in Niamey Niger, from 28 February to 2 March, was to follow-up and review progress made on achieving five selected SDGs on clean water and sanitation; affordable and clean energy; industry, innovation, and infrastructure; sustainable cities and communities; and partnerships for the Goals. The meeting also formulated key messages on accelerating the implementation of the United Nations’ 2030 Agenda and the African Union’s Agenda 2063.
A post-Forum statement - The Niamey Declaration on accelerating the inclusive and green recovery from multiple crises and the integrated and full implementation of the 2030 Agenda for Sustainable Development and Agenda 2063: The Africa We Want, of the African Union called on governments to invest in science and climate observations systems to trigger changes to meet the SDGS.
UK to host African Investment Summit in April 2024 (GOV.UK)
The Prime Minister will host a UK-African Investment Summit in London on 23-24 April 2024. The Summit will bring together Heads of State and Government from 24 African countries with British and African business leaders. It will strengthen UK-African partnerships to create jobs and growth, supporting British and African talent in sectors such as finance and technology, and promote women entrepreneurs.
During the next two years, faster economic growth is expected across Sub-Saharan Africa than the global average. And as the world faces the stark and shared challenge of climate change, the UK is working with African countries to support them to mitigate and adapt to its effects, recognising Africa’s abundant potential for renewable energies of the future.
A Trade Hope: The impact of the Black Sea Grain Initiative (UNCTAD)
The war in Ukraine sent shock waves throughout the global economy, in particular through trade disruptions of food and fertilizers from two of the world’s main breadbaskets, Ukraine and the Russian Federation. This left millions of people in developing and least developed countries at the frontline of a food and price crisis.
In July 2022, two agreements were signed: one is the memorandum of understanding between the United Nations and the Russian Federation to facilitate the unimpeded access for their food and fertilizers exports to global markets. The second is the Black Sea Grain Initiative (BSGI), signed by the Russian Federation, Türkiye, Ukraine, and witnessed by the United Nations to allow the safe export of grain, fertilizers and other foodstuff from Ukrainian ports in the Black Sea.
These agreements have helped to bring down the cost of food, stabilize global markets and keep them open.
However, this progress is fragile and price pressures remain. While food prices have gone down from their all-time high at the start of the war, they remain high compared to pre-crises levels. Moreover, currency depreciations prevent many developing countries from benefiting from global price decreases, and, in the most severe cases, prices have even gone up. Additionally, as is so often the case, the most vulnerable bear the brunt, particularly women.
Cooperation on standards at WTO could speed up steel sector decarbonization: Trade Forum (WTO)
The Trade Forum for Decarbonization Standards: Promoting transparency and coherence in the iron and steel sector brought together officials and business leaders from many of the world’s largest steel-producing economies for a dialogue on coherent and transparent standards in accelerating the global scale-up of low-carbon steelmaking.
Speaking at the Leaders’ Conversation at the start of the Forum, Director-General Ngozi Okonjo-Iweala noted that the iron and steel sector alone accounts for around 8% of global greenhouse gas emissions, with 70% of global production of primary steel relying on carbon-intensive blast oxygen furnaces.
Decarbonization standards will be key in enabling the steel sector to become carbon-neutral, yet this effort is being undermined by policy fragmentation and incompatible carbon standards – with at least 20 different standards alone, each with different underlying methodologies, the DG noted.
How to unlock women’s potential in the digital economy (UNCTAD)
The theme for International Women’s Day, 2023, aptly chosen by the United Nations, is “DigitALL: Innovation and technology for gender equality”. Within this domain, digital entrepreneurship can be a powerful avenue for women’s inclusion in the digital economy with new business opportunities, efficiency gains and better access to markets and global value chains.
While the digital economy is a very broad category, according to the International Finance Corporation, women could add over $300 billion to e-commerce markets alone in Africa and South-East Asia between 2025 and 2030.
There are three key advantages that e-commerce offers to women. First, it offers lower barriers to entry than traditional brick-and-mortar businesses. This means that women entrepreneurs can start their businesses with lower start-up costs and without the need for a physical storefront, which can be a significant advantage.
Secondly, it can enable women entrepreneurs to reach customers all over the world. Women entrepreneurs can leverage this global reach to expand their customer base and grow their businesses beyond their local markets. Birame Sock, an entrepreneur from Senegal, has taken advantage of this opportunity as founder of Kwely, an online B2B wholesale sourcing marketplace for products made in Africa. The online platform gives buyers around the world access to quality and unique products made in Africa that meet international standards.
And thirdly, it offers a degree of flexibility in terms of work hours and location. Women entrepreneurs who may have caregiving responsibilities or mobility constraints can greatly benefit from digital technologies.
Despite these opportunities, women entrepreneurs are much less represented in the digital economy than men. This gap translates into missed economic opportunities and may aggravate existing gender inequalities.
It is time to boost LDCs’ integration into trading system — DDG Zhang at LDC5 Conference (WTO)
In the roundtable entitled “Enhancing the participation of LDCs in international and regional trade”, DDG Zhang noted that market access opportunities, policy flexibilities and targeted trade support are among the steps that WTO members have taken to help LDCs become more active players in global trade. He encouraged LDCs to remain focused on their trade interests as the global trading landscape evolves.
President of Burundi, Évariste Ndayishimiye said: “While LDCs continue to face many challenges, progress has also been made to create an enabling environment for their integration into global trade. It is clear that we need more actions from all stakeholders if we are to achieve the goals we set in the Doha Programme of Action and the 2030 Agenda for Sustainable Development.”
Combat inequality amid global upheavals, Okonjo-Iweala and Lagarde urge on Women’s Day (WTO)
“Although we’ve made some progress, the recent crises we’ve experienced from the pandemic to the war in Ukraine, to the existential threat of climate change have set us back,” DG Okonjo-Iweala said, pointing to data on the increase in poverty, the impact on women and girls, and estimates that gender parity will take more than a century to achieve. “I am really concerned we are sleepwalking into potential world conflict,” she said.
“This discussion is happening at a critical time,” President Lagarde said. “Geopolitical tensions and the fragmenting of world trade are threatening to roll back decades of advances in women’s economic empowerment. Since the great financial crisis, the global economy has been hit by a series of unprecedented shocks.” It is more important than ever, in this global climate, to ensure trade flows are unimpeded, the two leaders said.
The 2nd G20 Global Partnership for Financial Inclusion Meeting (G20)
The second Meeting of the Global Partnership for Financial Inclusion (GPFI) under G20 India Presidency concluded today in Hyderabad.
During the Plenary, the GPFI members discussed and agreed on the way forward for important deliverables for the year including those on Digital Financial Inclusion, SME Finance. A dedicated workshop was also organised for the development of GPFI Financial Inclusion Action Plan (FIAP) 2023 which will guide the financial inclusion work under G20 for 2024-26.
A Symposium on Digital Innovations in Payments and Remittances was also organised on March 6, 2023 on the side lines of the GPFI meeting for both G20 and non-G20 countries.
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Stainless steel sector well-positioned to supply African markets, despite loadshedding challenge (Engineering News)
The biggest hurdle stainless steel production and fabrication faces to date is loadshedding, with this challenge overriding all previous issues and leading to diminishing staff safety, motivation, productivity and increased living costs, and contributing to a visible decline in apparent consumption during 2022, says industry organisation Southern Africa Stainless Steel Development Association (Sassda) executive director Michel Basson.
“This is the time to rethink what we do and how we do it. The energy issue might be an opportunity to make the industry more energy efficient and less energy dependent,” he adds.
Zimbabwe Accedes to Afreximbank’s Fund for Export Development in Africa (FEDA) Establishment Agreement (Afreximbank)
The Republic of Zimbabwe became the sixth signatory to the Establishment Agreement of the Fund for Export-Development in Africa (FEDA), the development impact-oriented subsidiary of African Export-Import Bank (Afreximbank). The Agreement was recently signed by His Excellency Dr. Emmerson Dambudzo Mnangagwa, President of the Republic of Zimbabwe. This accession marks another significant step forward in Afreximbank’s efforts to mobilize its Member States to sign and ratify the Establishment Agreement of FEDA. It also demonstrates the growing support for FEDA as a new multilateral development platform.
Following the announcement of its first close of US$ 670 million in September 2022, FEDA continues to build momentum for strategic interventions on the Continent.
Angola 2022 Article IV Consultation (IMF)
Angola achieved macroeconomic stabilization amid a very difficult environment in 2020 and growth began to recover in 2021. The recovery picked up pace in 2022, aided by high oil prices. President João Lourenço was reelected in August 2022. Angola continues to face significant challenges, including debt vulnerabilities and the need to diversify the economy as oil production declines over the long term. The authorities’ reform agenda, including their upcoming 2023–27 National Development Plan, is focused on these challenges.
Ghana seeks economic cooperation with Angola (Angop)
Ghana ambassador to Angola, Mavis Esi Kusorgbor, said Sunday in Luanda that she is determined to translate the political will of the leadership of both countries into the implementation of viable initiatives for mutual economic benefits. Speaking to ANGOP, ahead of Ghana’s 66th independence anniversary to be marked on March 06, the ambassador said the government and people of Ghana are determined to contribute to boost global sustainable development through solid policies.
Egypt’s exports to African markets planned to hit $15B (EgyptTpday)
Egypt plans to increase its exports to Africa to reach up to $15 billion in the upcoming years by training Egyptian exporters on how to deal with the African markets, identifying the markets’ needs and increasing the exporters’ access to African markets. Despite their great potential, Egyptian exporters are faced with a lot of challenges when expanding to African markets, like the absence of banks providing credit facilities and long shipment period for goods, which can reach up to four months.
As a result, Egypt has established six logistics centers – out of 12 – in six African countries (Kenya, Morocco, Mauritius, Nigeria, Zambia, and Algeria) to facilitate access to African markets.
All Set For The Maiden Ghana Automotive Summit 2023 (Peacemfonline)
The Automobile Assemblers Association of Ghana will host its maiden Automotive Summit on the 20th of March 2023, at the Accra International Conference Centre (AICC) Grand Arena. The theme for the summit; ‘Creating A New Economic Backbone for Ghana and The Sub-Region,’ will present the opportunity for leading experts and industry professionals in the sector to discuss the latest trends, challenges, and opportunities in the automobile industry. The summit will concurrently run along an exhibition of over 20 vehicle models locally assembled in Ghana by the members of the AAAG.
The United Nations Economic Commission for Africa (ECA), in partnership with the Office of the Resident Coordinator of the United Nations System in Côte d’Ivoire and the National Steering Committee for Public-Private Partnerships (PPP) of Cote d’Ivoire, organized this day in Abidjan, a validation workshop of the diagnostic study of Côte d’Ivoire on PPPs in infrastructure.
Scheduled for March 6-7, 2023, this workshop, which brings together representatives of ministries in charge of Planning and Development, Budget, Transport, the National PPP Steering Committee and the private sector aims to examine the findings of the scoping study on PPPs in infrastructure in Côte d’Ivoire, raise awareness and guide the debate on PPPs in infrastructure and their financing modalities in Côte d’Ivoire, and then develop an action plan for a short and medium term intervention.
Cote d’Ivoire’s diagnostic study and related action plan are part of the ECA’s “PPP for Infrastructure Financing” project, an initiative aiming, among other things, at increasing the number of infrastructure projects financed by Public Private Partnerships (PPPs) and accelerating infrastructure development in Africa. Six (6) African countries are involved in this process, namely Kenya, Uganda, Malawi, Zambia, Cameroon and Côte d’Ivoire.
Platform urged to scale up its support to African countries (New Business Ethiopia)
UN Deputy Secretary-General Amina J. Mohammed called on developing Africa’s common positions on emerging issues in support of the achievement of the Sustainable Development Goals and the Africa Union’s Agenda 2063. She made the remark during a meeting of “heads of regional UN entities across Africa to accelerate the collective delivery of strategic results at the regional level by providing more transformative support to Resident Coordinators and UN Country Teams in 54 countries on the continent”.
During three hours of in-depth dialogue, the Deputy Secretary-General emphasized the urgent need for a course correction to rescue the SDGs and the AU Agenda 2063. “We are totally off track with the SDGs, and we were already off before COVID-19. The pandemic, the war in Ukraine, and the cost-of-living crisis all exacerbated the situation,” she said.
Just Energy Transition must consider Africa’s needs (SAnews)
Africa must be given the space to transition from high carbon usage to low carbon at a pace and cost that it can afford, says Minister of Mineral Resources and Energy Gwede Mantashe. The Minister was speaking at the Africa Energy Indaba held in Cape Town on Tuesday.
“Their voice [African people] on the Energy Transition must be heard. That is the voice that says, energy production in Africa must be aligned to Africa’s socio-economic development. This means that there must be a balance between energy demand for socio-economic development and energy supply that is premised on low carbon emissions.
“Differences about the pace, scale and how to balance the transition will always exist, however, as African leaders, we are duty bound to act with determination to resolve the intricate problems that beset our continent without the encirclement pressure to please others first. We must be pragmatic in our approach to a low emissions future,” he said.
African-made renewable energy products could benefit continent – SAIEE (Engineering News)
Although Africa is going through an “unavoidable” energy transition, South African Institute of Electrical Engineers president Prince Moyo believes the continent can “leapfrog” the trajectory of Western nations if it finds ways of making renewable energy components on the continent. Speaking at an Energy Day event organised by power systems developer Hitachi Energy Southern Africa on March 7, he said the future of electricity development was heading away from industrial users, and towards being more energy efficient and renewable energy information systems instead.
Moyo said key lessons could be learnt from fellow Brazil, Russia, India, China and South Africa (Brics) bloc countries, especially China and India, in terms of long-term planning. He explained that both China and India are rapidly developing because they prioritised long-term electricity generation and now have the generation base to power large industries.
The digital connectivity divide separating the globe’s least developed countries (LDCs) from the world as a whole shows no sign of narrowing. In fact, it is widening on key factors, according to ITU’s Facts and Figures: Focus on Least Developed Countries. While the share of the population in LDCs using the Internet has increased since 2011 from 4 per cent to 36 per cent, about two-thirds of the LDC population remains offline. LDCs also still face numerous barriers to meaningful connectivity, including lack of infrastructure, affordability, and skills. Although no single figure can capture all aspects and complexities of the digital divide, the gap between LDCs and the world in the share of people using the Internet has actually increased from 27 percentage points in 2011 to 30 percentage points in 2022.
New trade report: Improving food security in least developed countries (ITC)
Trade can increase the availability and affordability of food in least developed countries (LDCs), where more than 60% of people deal with food insecurity – twice as much as in developing countries, and six times as much as in developed countries. In the context of increasing global instabilities, a new report by the International Trade Centre (ITC) and the lead United Nations agency supporting least developed countries highlights trade policy options to help them work towards sustainable, trade-led development, in the face of crises.
ITC Executive Director Pamela Coke-Hamilton and Rabab Fatima, High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), launched the LDC Trade Report 2023: Improving Food Security today during the Fifth United Nations Conference on the Least Developed Countries (LDC5) – a conference that takes place once a decade – this time in Doha, Qatar.
Ms. Coke-Hamilton said: “Least developed countries continue to depend on commodity exports almost twice as much as other developing countries, and they continue to be more vulnerable to global instabilities. We as the global community have to do more, and we have to do better. This joint report with OHRLLS highlights concrete policy actions we can take to make a difference for them.”
On Monday at the Fifth UN Conference on the Least Developed Countries (LDC5), a series of roundtable discussions saw global leaders, civic actors and UN officials confront two of the most fundamental hurdles facing LDCs: how to make better use of science, technology and innovation (STI), and how to promote structural transformations that can help overcome the real impediments faced by those on the margins of society.
STI plays a critical role in LDCs’ efforts to drive poverty eradication, transition to sustainable development and become globally competitive. However, these vulnerable countries are often unable to reap the full economic and social benefits of technological development due to structural constraints, as there are significant disparities between LDCs and other countries.
DDG Ellard: We need to make trade work for women (WTO)
The global economy is not gender-neutral. It is estimated that women represent 39% of the global workforce worldwide, and their earnings are on average between 10 and 30% lower than those of men. In addition, women spend two to ten times more time on unpaid household work, and this burden increased significantly during the Covid-19 pandemic. Moreover, the pandemic has had a disproportionately adverse effect on women’s labour market outcomes. Women lost more than 64 million jobs in 2020, a 5% loss, compared to a 3.9% loss for men.
Trade is also not gender-neutral. There is evidence that women face higher obstacles than men in accessing the global market and the economic opportunities created by trade. Women entrepreneurs face higher trade costs than men, which prevent them from trading internationally. In particular, women face greater barriers to finance, higher costs of doing business, and more limited access to information and markets. Such structural challenges in the global economy prevent women from fully reaping the benefits of trade. As a result, only 1 in 5 female-owned small businesses is exporting.
Investment facilitation talks advance work towards finalizing negotiating text (WTO)
The co-coordinators of the negotiations, Ambassador Sofía Boza of Chile and Ambassador Jung Sung Park of the Republic of Korea, reported on their consultations with groups of members in various configurations. In those consultations, participants reiterated their support for the April “sunset approach” — the need to set a deadline to discard issues in the Annex which do not have wide support and therefore are not seen by participating members as “fit” to be part of the future IFD Agreement.
DG Okonjo-Iweala: Delivering meaningful outcomes at MC13 “not beyond our reach” (WTO)
In addressing the first General Council meeting of 2023, the Director-General said leaders, ministers and other stakeholders she met during her recent outreach appealed to the WTO to “work towards delivering further results for the benefit of people around the world — with MC13 being a key opportunity to do so”.
The Director-General also noted the discussions which took place at the 28 February meeting of the Trade Negotiations Committee, where several members cited the need to avoid overloading ministers’ plates with outstanding issues at the last minute. “This means we must now prioritize a few issues and build as much convergence on them as possible,” she said. “If we sustain the positive spirit from last week's meeting over the next 10 months, then delivering meaningful, quality outcomes is not beyond our reach.”
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South Africa is exporting more food. But it needs to find new growth frontiers (The Conversation)
South African agricultural exports were up for the third consecutive year in 2022, reflecting favourable production conditions and higher commodity prices. The export numbers for the full year have not yet been published.
The major export crops continued to be maize, wine, grapes, citrus, berries, nuts, apples and pears, sugar, avocados, and wool.
These products have been the drivers of exports over the past couple of decades. In particular, fruit and wine have increasingly become the leading export products. These have driven a rise in the value of agriculture (and agro-processing) exports, which have averaged 11% of the South Africa’s overall exports, up from 9% in the decade before.
South Africa now exports roughly half of its agricultural produce in value terms. Citrus, table grapes, wine and a range of deciduous fruits dominate the export list. Increasingly, we are seeing the encouraging uptick in beef exports.
South African trade moves away from air cargo as ocean rates tumble (The Loadstar)
South Africa is set to see a shift from air freight as importers and exporters eye tumbling sea freight rates and improved ocean reliability. The automotive industry in particular will rely less on air, delegates heard at last week’s Air Cargo Africa event in Johannesburg.
“The market has been very volatile,” explained Renaj Moothilal, executive director of South Africa’s component manufacturer association, NAACAM. “The component market depends on a globally integrated value chain. You can’t have 99% of components, you need 100%.
“In the past, we’ve moved mostly by sea freight, but over the [pandemic] years, we’ve had a huge uptake towards air. Sea had issues. We’ve seen a 60% to 70% increased use of airfreight over the last three or four years.”
But he added: “The component sector is cost-sensitive, and cost will always be a key decision driver. But to avoid being the cause of an assembly line shutting down, the use of aircraft became a lot more prevalent.”
Duty-free sugar imports dock at port of Mombasa (Business Daily)
Consumers may see the price of sugar come down in the coming days as the ships carrying the first consignment of the duty-free sweetener docks at the port of Mombasa. Imports of the commodity would normally attract a duty of 50 percent. A ship manifest from the Port shows that the first ship will arrive on Tuesday with a second one docking on March 1.
These are the first consignments of duty-free imports to get to the country after the government gave a waiver for maize, sugar and rice last year.
The government opened an import window in December that would see traders ship in 100,000 tonnes of sugar outside of the Common Market for Eastern and Southern Africa (Comesa) region to curb an imminent shortage in the country that has pushed up the cost of the sweetener to Sh312 for a two-kilo packet.
Kenya imports hit Sh2.5trn on costly fuel, foodstuff (Business Daily)
Kenyan importers spent an equivalent of three-quarters of the country’s annual budget to bring in goods from abroad, hurting job opportunities for growing skilled youth and exerting pressure on the shilling against major global currencies. Expenditure on imports rose 16.21 percent to Sh2.49 trillion on the back of the increased cost of importing fuel and food, official data collated by the Central Bank of Kenya shows. The import bill is equivalent to 73.45 percent of the Sh3.39 trillion original budget for the current year ending June.
Elevated import bill against a narrow basket of export goods helped widen the country’s goods trade deficit by 15.26 percent last year.
The trade deficit – the gap between merchandise imports and exports – rose to Sh1.62 trillion in 12 months through last December from Sh1.41 trillion the year before. Kenya has over the years struggled to narrow its goods trade deficit partly due to reliance on traditional farm produce exports such as tea, horticulture and coffee despite pledges by successive governments to expand the basket of merchandise and incentivise exporters who add value to produce.
Namibia to pocket oil billions after 2030 (New Era)
Oil and gas exploration in Namibia are the talk of the global town, following significant discoveries in the offshore Orange Basin last year, which is creating expectations of massive future government oil revenue. But a leading Namibian wealth management outfit said Namibia will only reap the rewards of these discoveries in a few years. Oil majors have in the meantime stepped up their exploration activities in Namibian waters.
This past weekend, Upstream, a reputed news source, reported that “Shell looks to have a third significant oil discovery on its hands in Namibia’s red-hot Orange basin play, and could make an announcement within hours or days”.
Producers urged to increase production to curb trade deficit (Daily News)
THE Office of Chief Government Statistician- Zanzibar (OCGSZ) has released the monthly balance of trade statistics showing that the international trade deficit increased in January this year compared with the corresponding month last year.
“Balance of Trade (BOT) showed a deficit of 118.5bn/- in January this year, increased by 76.5 percent compared to the corresponding month of 2022 and by 30.3 percent compared with the previous month. Trade ratio decreased from 9.5 percent in December 2022 to 6.9 percent in January this year,” said Mr Bakari Khamis Kondo from OCGSZ.
“Total exports of goods by Standard International Trade Certification (SITC), food and live animals was down with 7,1bm/- last month compared to December last year 7.4bn/- and the 24.7bn/- for the corresponding month- January 2022,” Kondo explained.
He said that India led the top five trading partners for exported goods in January this year, accounting for 64.3 percent of the total value of exported goods. Beverages and tobacco export followed, but it also dropped from 84.7bn/- in December last year to only 3.1bn/-
Namibia, Botswana sign historic border crossing deal (New Era)
Namibia and Botswana on Friday signed a historic agreement that will see the citizens of both countries using only their national identity documents to cross their borders. Namibian President Hage Geingob and his Botswana counterpart Mokgweetsi Masisi signed the Memorandum of Agreement (MoA) at the Trans-Kalahari/Mamuno common border in the east of Namibia.
The launch is the first of its kind in southern Africa. In signing this agreement, the two countries are following the objectives of the SADC Protocol on the Facilitation of the Movement of Persons Treaty, which encourages the free movement of people within the region. The treaty is yet to be fully implemented across theregion.
Why Nigeria’s trade deficit depressed to $20mln in November 2022 — Report (ZAWYA)
The Central Bank of Nigeria (CBN), in its monthly economic report (MER), said Nigeria reported a trade deficit amounting to $20 million in November 2022, which was as a result of lower export receipts from crude oil due to the decline in crude oil prices at the international market. This was a 60-percent dip month over month from $50 million in October 2022.
According to the CBN report, Nigeria recorded a 6.2 percent month-on-month decline in imports to $4.35 billion in the same period. The decline is attributed to the decline in the import of petroleum products to $0.89 billion from $1.24 billion in October. Non-oil imports, on the other hand, increased by 1.7 percent to $3.46 billion, up from $3.41 billion in the previous month.
Non-oil imports accounted for 79.5 percent of total imports, while oil constituted the remaining 20.5 percent.
America lists trade deal with Kenya on its 2023 agenda (Business Daily)
President Joe Biden’s administration has prioritised the proposed bilateral trade pact with Kenya in its agenda this year ahead of the September 2025 expiry of the duty- and quota-free deal.
Washington expects to “make rapid progress” in negotiating 11 pillars of the proposed US-Kenya Strategic Trade and Investment Partnership (STIP), which will replace the two-decade-old Africa Growth and Opportunity Act (Agoa).
“In 2022, we kicked off ambitious initiatives with Taiwan and Kenya to deepen our trade and economic relationships with both partners, and we aim to make rapid progress on both initiatives in 2023,” the Office of the United States Trade Representative wrote in the 2023 Trade Policy to the Congress on March 1.
Could a poultry meat import ban in Africa hurt local households? (Poultry World)
Cheap imports of chicken – mainly coming from the European Union and to a lesser extent from the USA and Brazil – have increased rapidly over the last 20 years, receiving a lot of attention in public debates about trade liberalisation, food security, and poverty. On the one hand, developing countries may benefit from cheap imports, which help to keep domestic prices low and thus improve poor people’s access to nutritious foods. On the other hand, cheap imports of chicken have long been criticised for hurting the local poultry production sector, including smallholder farmers.
“The topic is much discussed when it comes to poverty, international trade and Europe’s role in the agricultural sector in Africa,” says Prof Dr Matin Qaim of the Center for Development Research at the University of Bonn.
Researchers at the University of Bonn and the University of Göttingen used the example of Ghana to calculate and better understand what would happen if the African country were to significantly increase import tariffs (50%) for poultry meat, or to even stop poultry meat imports altogether.
Should Ghana significantly increase its import tariffs for poultry meat, domestic prices would rise. If imports were stopped altogether, local producers would get over a third more for selling their chicken. However, the researchers note that according to insights, most households in Ghana would not benefit because prices for consumers would also increase. “And there are significantly more consumers than poultry producers,” explains lead author Isabel Knößlsdorfer of the University of Göttingen.
Africa should build battery metals value chain to capitalise on its mineral resources (Mining Weekly)
The world must decarbonise its growth models and shift to renewable energy sources to meet the goals of the Paris Climate Agreement, the United Nations’ (UN’s) Sustainable Development Goals and Africa’s Agenda 2063, UN Economic Commission for Africa (UNECA) acting executive secretary Antonio Pedro has said.
Speaking during a panel discussion on ‘Building a regional battery mineral value chain in Africa’ earlier this week, he said the shift to renewable energy sources was a resource-intensive path that required greater production of a variety of minerals – many of which are found in Africa – that are central to decarbonisation efforts.
“We have clear opportunities not only from the global green mineral boom, but also from our domestic achievements, such as the African Continental Free Trade Area to facilitate the development of regional value chains for these green economy products,” said Pedro.
He also noted that several innovative financing mechanisms had been developed to support initiatives such as the battery and electric vehicles (EVs) value chains.
Post-Covid recovery spawns new face of East Africa tourism (The East African)
In their post-Covid recovery plans, East African countries are promoting regional tourism while tapping emerging tourist markets such as China.
Cruise, adventure, culture and sports tourism are niche products expected to spur growth in the sector as countries seek to reduce over-reliance on traditional source markets in Europe and the US, whose economic crisis and travel restrictions during the Covid-19 pandemic lockdowns in 2020 brought the sector to its knees, with massive job losses.
“To revamp the sector, our focus from 2023 will include developing strategies that will impact a wider population thus improving Kenyans livelihoods. This will include promotion of regional tourism to enhance performance of the African markets and development of niche products such as cruise tourism, adventure tourism, culture and sports tourism,” said Peninah Malonza, the Kenyan Cabinet Secretary for Tourism.
Creation of single currency will help successful implementation of AfCTTA - GITFiC (Ghana News Agency)
The Ghana International Trade Finance Conference (GITFiC), has stated that the creation of a single currency is essential to the successful implementation of the African Continental Free Trade Area-AfCFTA. “Although there are doubts due to the Euro crisis and the failure to establish the single currency in WAMZ by the deadline, it is still timely and relevant. With the introduction of the single currency, these nations will have the possibility to resolve their myriad monetary problems.
It said West African countries currently faced serious externally-created monetary problems that none of them could resolve on their own and where international monetary cooperation mechanisms perform insufficiently.
“Such is what is currently happening to the currencies of Member States, after a three year Global Pandemic. In order to win the public’s full support and make policy decisions related to the adoption of the single currency that would unavoidably include lifestyle adjustments and adaptations on their side, it is crucial to broadly inform the populace of the project’s stakes.”
National Experts meet to discuss the AfCFTA Protocol on Women and Youth (ECOWAS)
The ECOWAS Commission, in collaboration with the International Trade Centre (ITC) and the United Nations Economic Commission for Africa, organised a virtual regional meeting on 16 – 17 February 2023 on the African Continental Free Trade Area (AfCFTA) Protocol on Women and Youth, in preparations for the negotiations.
In his opening remarks on behalf of the Minister for Trade and Industry of the Republic of Guinea Bissau, the Chair of the meeting Mr Júlio COLONIA, Chief Negotiator and Director of Trade Agreements’ Section
highlighted that women and youth constitute an important part of the West African population, and as such they have a role to play in making the AfCFTA a reality. He stressed the fact that half of the African population is young and therefore the AfCFTA Protocol on Women and Youth promises a better future for the continent.
PAP President Charumbira pushes for quick implementation of Africa free trade area (The Herald)
Pan African Parliament (PAP) President Chief Fortune Charumbira has jolted the legislative continental body’s committees to prioritise review of their work plans and ensure that activities, aimed at facilitating the accelerated implementation of the African Continental Free Trade Area (AfCFTA), take precedence.
Speaking today during a PAP Bureax meeting in Midrand, South Africa, which is the seat of PAP, he noted that speedy implementation of AfCFTA would engender socio-economic transformation on the African continent.
“The Committee Sittings are going to be held under the African Union Theme for 2023, “The Year of AFCFTA: Acceleration of AFCFTA Implementation.” At the recently concluded AU Summit, the major concern was the slow implementation of commitments made by Member States to the actualization of the AFCFTA. The PAP thus had a pivotal role to play collectively at the continental level and as PAP Members at the national level, to ensure that Member States are held to account for the commitments they make towards the implementation of AFCFTA.”
The African Union Commission – through its Departments of Agriculture, Rural Development, Blue Economy and Sustainable Environment (ARBE); and Economic Development, Trade, Industry and Mining (ETIM) hosted a successful investor round table on the Common Africa Agro-Parks (CAAPs) Initiative at the African Union Headquarters in Addis Ababa, Ethiopia. Jointly organized by the Forum for Agricultural Research in Africa (FARA), and the Africa Export, Import Bank (Afrexim bank) the event took place on 17th February 2023 in the margins of the 36th Ordinary Session of the African Union. A CAAPs Steering Committee meeting was held on the 16th February.
In her welcome remarks at the investor round table, H.E. Amb. Josefa Sacko, Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment (ARBE), acknowledged all CAAPs program partners that were present during the roundtable and for the commendable actions taken by each institution. She emphasized that in the context of The African Continental Free Trade Area (AfCFTA), the CAAPs program has the potential to transform the continent’s agriculture and boost the continent’s integration through trade and industrialization.
‘‘Implementing the CAAPs is no longer an option, and we shall not allow any distraction to the realization of this important vision of Africa’’.
Africa’s sustainable growth hinges on science, technology, and innovation (UNECA)
Achieving the ambitious targets of the 2030 and 2063 Agendas requires leveraging the power of science, technology, and innovation (STI) to fight multidimensional vulnerabilities so Africa can move from crisis to sustainable development. During a session on STI at the Ninth African Regional Forum on Sustainable Development , experts emphasized the crucial role of STI as a key driver and enabler for ensuring economic growth, improving well-being, mitigating the effects of climate change, and safeguarding the environment.
They also underscored the need to strengthen national and regional STI ecosystems by fostering innovation, promoting entrepreneurship, and investing in research and development.
The experts highlighted that despite advances in STI, significant gaps remain in bridging the scientific and technological divide between developed countries and Africa. The highly uneven global distribution of scientific capacity and access to knowledge threatens to derail the goal of leaving no one behind, which is the central and transformative promise of Agenda 2030.
Fresh commitment, investment needed to achieve SDGs in Africa (UNECA)
Africa needs a paradigm shift to deliver sustainable development by making a fresh commitment and increasing investment to realize the SDGs, the Economic Commission for Africa’s Deputy Executive Secretary and Chief Economist, Hanan Morsy, urged African states. “A big part in our quest to deliver the SDGs, we need a new paradigm, we need to accelerate action and we need to deliver green and inclusive recovery from the impact of multi crises, which have beset the world,” Ms. Morsy said in closing remarks at the 2023 African Regional Forum on Sustainable Development (ARFSD) which ended on 2 March in Niamey, Niger.
Analyses by the ECA show that Africa will need around $438 billion of adaptation funding by 2030. Apart from the threats of climate change, security threats were also undermining efforts to make lasting development progress.
EAC and ESAMI to partner on capacity building on regional trade issues (EAC)
The EAC Secretary General Hon. (Dr.) Peter Mathuki and the Managing Director of the Eastern and Southern African Management Institute (ESAMI), Dr. Martin Lwanga, have signed a Memorandum of Understanding (MOU) establishing a framework of collaboration in jointly developing training and capacity-building activities in trade-related areas, in a bid to foster greater business development and enhance the region’s competitiveness. The partnership between ESAMI and EAC will further undertake to provide training programs in all trade and trade-related areas of interest to the EAC and within the capacity of the Trade Policy Training Centre in Africa (TRAPCA).
TRAPCA is one of the centers of ESAMI, which was established in 2006 as a result of collaboration between ESAMI, the Lund University of Sweden, and the Swedish International Development Cooperation Agency (SIDA). It has a mandate of building and enhancing capacity in trade policy matters in the developing countries in Sub-Saharan Africa among others, covering areas such as trade in goods, trade in services, SMEs and MSMEs, e-commerce, trade and environment, trade and gender and trade facilitation with a view to building a pool of East African experts within the Secretariat and officials from the Partner States.
Implementation of the €8m Regional ICT Programme Reviewed (COMESA)
The Steering Committee of the programme on Enhancement of Governance and Enabling Environment in the ICT sector (EGEE-ICT) in the Eastern Africa, Southern Africa, and the Indian Ocean region (EA-SA-IO) meeting began today in Nairobi, Kenya to review the programme’s performance, since it was launched two years ago.
The eight million euros programme aims at enhancing the governance and enabling environment in the ICT sector in the EA-SA-IO region. It supports the review and development of regional policy and regulatory frameworks in a harmonized manner, thus contributing to enhanced competition and improved access to cost effective and secure ICT services. The four-year programme is funded by the European Union.
The Principal Secretary, Ministry of Information, Communication, and Technology and the Digital Economy in Kenya Eng. John Tanui opened the meeting. He urged countries in the region “to seize the significant socio-economic opportunities that digital technologies offer.”
DDG Zhang calls on international community to redouble efforts to improve welfare of LDCs (WTO)
At the meeting of the UN Secretary-General with UN principals, DDG Zhang underscored how trade can improve economic welfare in LDCs. “We have a shared responsibility to redouble our efforts and find ways to improve the lives of 1 billion people in LDCs before the end of the decade,” he said. Highlighting the key outcomes achieved by WTO members at the WTO’s 12th Ministerial Conference (MC12) held in June 2022, he said: “MC12 outcomes directly contribute to achieving the 2030 Agenda for Sustainable Development and the Doha Programme of Action for LDCs - from the Agreement on Fisheries Subsidies to steps for addressing food security to ensuring access to vaccines.”
“Integrating LDCs more fully into the global economy is at the heart of LDC5. We can bring about transformative changes in the lives and livelihoods of more than a billion people living in the 46 LDCs by harnessing their trade and investment potential,” said Rabab Fatima, High Representative and Under Secretary-General of UN-OHRLLS.
On 5 March, the WTO co-organized a session entitled: “LDC trade development: towards new frontiers” with the UN-OHRLLS and the EIF.
Inequality of access to resources and opportunities hinders development, says Seychelles’ President (Seychelles News Agency)
The potential for least developed countries (LDCs) and small island states (SIDS) to have rapid growth and development could be realised if they had equal access to resources and opportunities, Seychelles’ President Wavel Ramkalawan said in a plenary session on Sunday. Ramkalawan was speaking at the 5th United Nations Conference on the Least Developed Countries (LDC5) in Doha, Qatar.
“Seychelles has graduated to the high-income status, however, our presence here is a sign of solidarity, regional and global support for our fellow SIDS and Africans and a strong expression of seeking greater standing and cooperation. No state should be punished for progress. Let not the so-called graduation be another hurdle in meeting the needs of our people and its communities,” he said.
AfCFTA would revive economies of LLDCs and SIDS (Ghana Business News)
The fundamental role of the African Continental Free Trade Area (AfCFTA) in overcoming the peculiar challenges faced by Africa’s Landlocked Developing Countries (LLDCs) and Small Island Developing States (SIDS) was highlighted in Harare at a high-level event jointly organized by the UN Economic Commission for Africa (ECA) and the Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS).
Coordinator of ECA’s African Trade Policy Centre (ATPC), Mr. Melaku Desta underscored that LLDCs and SIDS can often be differentiated by the specific challenges they face, but are also confronted with many common challenges, particularly those related to the economic, social, and environmental factors that are global in scale.
Mr. Desta further stressed that all six of Africa’s SIDS and 15 of the 16 African LLDCs have ratified the AfCFTA, as a sign of their readiness to leverage the opportunities offered by the AfCFTA.
Buhari seeks duty-free market access for least developed countries (The Guardian Nigeria)
President Muhammadu Buhari has called on developed and developing nations to grant duty-free and quota-free market access for products originating from the world’s 46 least-developed countries to ensure their integration in regional and global value chains.
The president strongly criticized the current structure of the global financial system which places an unsustainable external debt burden on the most vulnerable countries.
The Nigerian leader challenged developed countries, civil society actors, the private sector, and the business community, to partner with the LDCs in order to provide necessary resources and capacity to deliver development outcomes in the economic, social, and environmental aspects of the 2030 Agenda.
On trade issues, the president said: “It is important to put in place modalities to facilitate transit cooperation, transfer of technologies, and access to global e-commerce platforms, as they are critical for the integration of LDCs into the regional and global value chains and communications technology services.
UNCTAD calls for urgent global action to support the world’s 46 least developed countries (UNCTAD)
The world’s 46 least developed countries (LDCs) are being hit the hardest by multiple crises including the COVID-19 pandemic, climate crisis, growing inequalities, rising debt burdens and economic shocks.
The LDCs face the challenge of high debt costs while having inadequate liquidity to provide essential services. In the last decade, debt service costs in LDCs have jumped from around 5% in 2011 to over 20% today.
To address this, the UN Conference on Trade and Development (UNCTAD) is rallying global action to help these countries build resilience to economic shocks and safeguard their hard-won development gains.
UNCTAD is calling for effective debt relief and international support to build stronger productive capacities as the basis for economic and export diversification and a just, balanced and sustainable low-carbon transition in these nations.
UNCTAD supports LDCs to access the benefits of the global economy, promoting structural transformation, fostering economic and export diversification, building links to global and regional value chains and supporting a new development strategy for these countries to be able to graduate from LDC status.
No more excuses; Guterres calls for ‘revolution of support’ to aid world’s least developed countries (UN News)
Three years after the world began its epic struggle against COVID-19, the least developed countries (LDCs) – already grappling with severe structural impediments to sustainable development and highly vulnerable to economic and environmental shocks – have found themselves stranded amid a rising tide of crisis, uncertainty, climate chaos and deep global injustice.
“Systems are stretched or non-existent – from health and education to social protection, infrastructure, and job creation. And it is only getting worse,” Secretary-General António Guterres told the Fifth UN Conference on the Least Developed Countries, known as LDC5, taking place in the Qatar capital from 5 to 9 March.
He said that the global financial system, created by wealthy countries to serve their own interests, is extremely unfair to LDCs, who must pay interest rates that can be eight times higher than those in developed countries. “Today, 25 developing economies are spending over 20 per cent of government revenues solely on servicing debt,” said the UN chief.
In the face of such deep challenges, the UN chief stated that the LDCs “need a revolution of support” across three key areas.
Why the least developed countries need urgent action (UNCTAD)
LDCs are characterized by limited productive capacities and multiple structural constraints to tackle today’s polycrisis that can have disproportionately damaging effects on their economies. It comes when the 46 LDCs are sharply hit by multiple crises: geopolitical fragmentation, a pervasive climate crisis, high inflation, rising debt, poverty and hunger.
Investment flows to least developed countries affected disproportionally by global crises (UNCTAD)
Investment Promotion in LDCs: A Needs Assessment (UNCTAD)
Global Business Community Launch New Generation of Partnerships for Least Developed Countries
LDCs: We must ensure that low carbon transitions don’t harm poor countries
UN delegates reach historic agreement on protecting marine biodiversity in international waters (UN News)
“This action is a victory for multilateralism and for global efforts to counter the destructive trends facing ocean health, now and for generations to come,” said the UN chief in a statement issued by his Spokesperson late Saturday evening just hours after the deal was struck at UN Headquarters in New York, where tough negotiations on the draft treaty have been under way for the past two weeks.
Already being referred to as the ‘High Seas Treaty’, the legal framework would place 30 per cent of the world’s oceans into protected areas, put more money into marine conservation, and covers access to and use of marine genetic resources.
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South Africa must prioritise decarbonisation, as $1.5bn of exports to EU are at risk (Engineering News)
South Africa should prioritise its decarbonisation strategy, as it has a carbon intensity much higher than most countries, and $1.5-billion of exports to the European Union (EU) are at risk in the short term.
That figure is likely to increase when more products are covered under the EU's Carbon Border Adjustment Mechanism (CBAM), said policy development research institution Trade and Industrial Policies Strategies (TIPS).
The EU is one of South Africa’s major export destinations, accounting for 19% of its total exports in 2019. The CBAM is a carbon border tax on embedded greenhouse-gas (GHG) emissions of carbon-intensive products imported into the EU.
Kenya: State Warns Buyers Against Transporting Avocadoes In Open Pick-Ups (Soko Directory)
Buyers transporting avocadoes in open pick-ups will be arrested in the government’s latest move to ensure the sale of quality products.
Speaking during a sensitization forum in Murang’a County, director of horticultural crops directorate Benjamin Tito said transporting the fruit in open pick-ups breaches the crops and horticultural regulations of 2022 that provide that they should be well packaged in crates and transported in well-designed vehicles to maintain their quality.
Kenya is Africa’s top exporter of avocados and the sixth-largest exporter of fruit globally. The country accounts for 81.6 percent of EAC avocado fruit produce. The Hass variety which is the most grown variety in Kenya has generated a lot of interest in the export markets owing to its long shelf life and taste.
South Africa: CGA says time is running out for citrus impasse in EU to be resolved (Engineering News)
The Citrus Growers Association (CGA) has again written to Trade, Industry and Competition Minister Patel Ebrahim, requesting with urgency that he convene a World Trade Organisation (WTO) panel to adjudicate on the European Union’s (EU’s) new citrus import regulation.
The CGA says it is grateful for the support shown by the national government, including the Department of Trade, Industry and Competition, requesting consultations at the WTO level with the EU over the new regulations.
However, these consultations have not resolved the current impasse, and so the CGA urges Patel to put further pressure on the EU by calling for the establishment of a WTO panel to adjudicate on the matter before the 2023 export season starts at the end of the month.
Mpumalanga, Mozambique bolster agri ties (Food For Mzansi)
The National African Farmers Union (Nafu) has signed a memorandum of understanding (MOU) with the National Federation of Agrarian Associations of Mozambique (Fenagri). The MOU is aimed at improving agricultural collaboration between South Africa and the East African country.
The president of Nafu in Mpumalanga, Jabu Mahlangu, said they recently visited Mozambique to engage with the leadership of Fenagri.
“The collaboration agreement between Nafu and Fenagri is meant to improve the collaborative environment in, and between the two agrarian communities in the respective countries,” Mahlangu told Food For Mzansi.
Nigeria: Processed wood exporters seek share of $152.94bn market as FG lifts ban (Guardian Nigeria)
Exporters of processed woods have intensified efforts to reap from the exportation of the product with market value put at over $152.94 billion for the year 2023 following the recent lifting of ban for its exports by the Federal Government.
They are also targeting the exportation of charcoal with a current market value put at over $5.41 billion respectively.
The government has conditionally lifted the ban on charcoal and processed wood export in a bid to revamp businesses, especially those converting waste to wealth and thereby increase the country’s foreign exchange earnings.
South African trade moves away from air cargo as ocean rates tumble (The Loadstar)
South Africa is set to see a shift from air freight as importers and exporters eye tumbling sea freight rates and improved ocean reliability.
The automotive industry in particular will rely less on air, delegates heard at last week’s Air Cargo Africa event in Johannesburg.
“The market has been very volatile,” explained Renaj Moothilal, executive director of South Africa’s component manufacturer association, NAACAM. “The component market depends on a globally integrated value chain. You can’t have 99% of components, you need 100%.
Key actions to accelerate SDG 9 implementation (UNECA)
Niamey, 2 March 2023 (ECA) - The 9th Africa Regional Forum on Sustainable Development held in Niamey from 28 February to 2 March featured a session to discuss progress, challenges, opportunities, and priority actions needed to accelerate the implementation of Sustainable Development Goal 9 (SDG 9).
Representatives from various African countries and organizations, including the United Nations Industrial Development Organization (UNIDO), the Office of the Special Adviser on Africa (OSAA), and the Economic Commission for Africa (ECA), were in attendance.
The session called for increased efforts to help firms increase exports, attract foreign direct investment, and facilitate technology transfer. Participants also urged countries to build resilient regional value chains to develop productive and competitive economies that can take full advantage of the opportunities to implement the Agreement establishing the African Continental Free Trade Area.
African companies prefer trading with non-African countries, ignoring local FTAs (North African Post)
African exports to other continents surpass the continent’s intercontinental trade, the United Nations Conference on Trade and Development (UNCTAD) has found, with Africans preferring import tariffs provided by the United States, European Union, Canada, and Japan (the “Quad nations”).
Despite growing calls for increased intraregional trade, companies in Africa are taking advantage of preferential trade deals with the other continents and ignoring local free trade accords. African traders are taking advantage of favorable import tariffs provided by the so-called “Quad nations” under different preferential trade agreements (PTAs), which has led to significant exports to these quad nations.
A research, conducted by the UN Conference on Trade and Development (UNCTAD) and the Common Market for Eastern and Southern Africa (Comesa), has also revealed that enterprises are not fully utilizing comparable advantages under local regional economic communities.
Implementation of the €8m Regional ICT Programme Reviewed (COMESA)
Nairobi, Thursday, 02 March 2023: The Steering Committee of the programme on Enhancement of Governance and Enabling Environment in the ICT sector (EGEE-ICT) in the Eastern Africa, Southern Africa, and the Indian Ocean region (EA-SA-IO) meeting began today in Nairobi, Kenya to review the programme’s performance, since it was launched two years ago.
The eight million euros programme aims at enhancing the governance and enabling environment in the ICT sector in the EA-SA-IO region. It supports the review and development of regional policy and regulatory frameworks in a harmonized manner, thus contributing to enhanced competition and improved access to cost effective and secure ICT services. The four-year programme is funded by the European Union.
The Principal Secretary, Ministry of Information, Communication, and Technology and the Digital Economy in Kenya Eng. John Tanui opened the meeting. He urged countries in the region “to seize the significant socio-economic opportunities that digital technologies offer.”
Stop Exporting Cancer Causing Products to Africa, Tayebwa Tells EU (All Africa)
The Deputy Speaker, Thomas Tayebwa has rallied developing countries to jointly reject what he described as unfair trade and deceitful practices by the European Union.
Speaking at the African, Caribbean, and Pacific (ACP) Parliamentary conference in Brussels, Belgium, Tayebwa condemned the EU member states for exporting banned pesticides and products to developing countries.
He rallied ACP member states to speak as a team against the double standard arrangement citing the "vulnerability we all have".
AfCFTA: Intra-African trade increased by 20% in 2022 says UNECA (The Cable)
The United Nations Economic Commission For Africa (UNECA) says the African Continental Free Trade Area (AfCFTA) increased trade between countries in the region by 20 percent in 2022.
Antonio Pedro, acting executive secretary of UNECA, spoke on the success of the AfCFTA project on the sidelines of the 9th session of the Africa regional forum on sustainable development in Niamey, Niger Republic.
The commission, in 2018, estimated that the AfCFTA would increase intra-Africa trade by 52 percent by 2022.
Speaking on whether the objective of 52 percent intra-African trade was achieved, Pedro said the level of trade had increased but not up to its target.
UNECA adopts payment mechanism for AfCFTA (The Sun News Online)
The United Nations Economic Commission for Africa (UNECA), has adopted a system of payments for proceeds made from the African Continental Free Trade Area (AfCFTA).
Antonio Pedro, the Acting Executive Secretary of UNECA, said this on the sideline of the ongoing 9th Session of the Africa Regional Forum on Sustainable Development in Niamey, Niger.
The Pan-African Payment and Settlement System (PAPSS) is a cross-border, financial market infrastructure enabling payment transactions across Africa. Pedro said that the continent has many currencies and PAPSS was a platform to make intra-African trade easy.
Help remove trade barriers, Tanzania contractor asks Ruto (The Star Kenya)
The Tanzanian contractor working on the LPG plant project at Dongo Kundu in Mombasa has appealed to President William Ruto to help remove trade barriers hampering businesses in the EAC region.
Rostam Aziz, the brains behind Taifa Gas Investment SEZ Limited that's undertaking the Sh16 billion Liquefied Petroleum Gas project said it's cheaper to import goods from say China to Tanzania than from Kenya.
"Cross-border business between our countries is hard and faces a lot of barriers. It is way cheaper to import goods from China, India or Dubai but importing goods from Tanzania, Kenya, Uganda, and Rwanda is a very hard task. Mr President this is not okay, we should not be like this," Aziz said.
COMESA Holds Jumia Accountable for Third-party Goods Sold on its Platform (Investors Kind Ltd)
Jumia, Africa’s largest e-commerce platform, has been notified by the Common Markets for Eastern and Southern Africa (COMESA) that it will be held accountable for goods sold by third-party merchants on its platform.
The regional economic community in Africa has compelled Jumia to review its clauses and disclaimer and amend its terms and conditions. This means that Jumia will have to recall any defective or unsafe products sold by third-party agents and will be held responsible when customers cannot get a refund or replacement from vendors.
COMESA’s statement said that Jumia had disassociated itself from the transaction, even though the consumer deals only with Jumia, as it is the one that receives the orders, payments, and delivers on behalf of the seller.
Tax bodies agree on measures to boost Uganda-South Africa trade links (The Independent Uganda)
Uganda and South Africa have eased tax procedures for exporters on both sides, aimed at enhancing the movement of goods between the two countries.
During the South Africa Uganda Business Forum in Pretoria, the two countries’ revenue bodies signed a Mutual Recognition Agreement on Authorities Economic Operators, AEOs.
The deal between Uganda Revenue Authority-URA, and the South Africa Revenue Services was described as vital for trade facilitation among the two African countries as AEOs from either country will access faster controls and reduced supervision for customs clearance.
According to the World Customs Organisation, an AEO is “a party involved in the international movement of goods that has been approved by, or on behalf of a national customs administration as complying with WCO or equivalent supply chain security standards.”
WTO issues note on trade policy developments following one year of war in Ukraine (WTO)
The WTO Secretariat on 2 March published a Trade Monitoring Update providing a brief factual overview of trade policy developments following the outbreak of the war in Ukraine on 24 February 2022. The note sheds light on trade measures introduced in the context of the war, in particular in the food, feed and fertilizer sectors.
The information contained in the note — entitled “A Year of Turbulence on Food and Fertilizers Markets” — is based on research undertaken by the WTO Secretariat in the context of the WTO Trade Monitoring Reports circulated on 13 July and 22 November 2022, including trade measures submitted or verified by WTO members and observers, and continuous monitoring of trade policy trends.
The note points out that immediately following the outbreak of the war, several export restrictions on wheat, barley, sugar and seeds from Ukraine and the Russian Federation were implemented. Together, Ukraine and the Russian Federation are major food and agricultural exporters and ranked in 2021 amongst the top exporters of wheat, maize, rapeseed, sunflower seed and sunflower oil. Additionally, the Russian Federation is a top supplier of fertilizers.
This is how war in Europe is disrupting fertilizer supplies and threatening global food security (Gavi)
The war in Ukraine is having a major impact on the global supply of agricultural fertilizers, potentially undermining food security around the world.
Russia, together with Belarus, is one of the world’s largest sources of mineral fertilizers. After its invasion of Ukraine in February 2022, many nations, including the United States and the European Union (EU), imposed sanctions on the country.
Although there were specific exemptions in the sanctions regime to permit Russia and Belarus to continue to supply fertilizers, exports have fallen foul of other measures designed to isolate the region.
The World Economic Forum’s 2023 Global Risks Report ranked a looming food supply crisis as one of the top four threats facing the world, predicting that “the lagged effect of a price spike in fertilizer” would hit food production across the world in 2023.
Uk Food and Drink Sector Saw Record High Exports In 2022, FDF Data Finds (Grocery Gazette)
The UK food and drink industry reported has seen a record breaking number of exports in 2022, new data of the UK’s largest manufacturing sector has revealed.
According to the Food and Drink Federation’s (FDF) full-year trade snapshot, there has been a huge resurgence in food and drink exports as most categories now exceed pre-pandemic levels, reaching a record £24.8 billion.
The organisation reported that exports to Europe rose 22% to £13.7 billion – with fast-growing economies like Vietnam nearly doubling compared to this time last year. For the very first time, exports to non-EU markets have broken through the £10 billion barrier, hitting £11.1 billion.
Signing of U.S.-Taiwan trade pact to be foundation for future full-scale BIA: Source (Focus Taiwan)
Taipei, March 3 (CNA) Taiwan and the United States will be signing an agreement under a trade initiative "in the coming weeks" that would pave the way for a full-scale bilateral trade agreement (BIA) should Washington wish to explore that option, said a senior Taiwan government official familiar with trade talks on Thursday.
The official, speaking on condition of anonymity, told reporters in Taipei that both sides would be signing a deal under the U.S.-Taiwan Initiative on 21st-Century Trade "very soon."
The sealed deal will be a "de facto BIA" without touching on the issues of tariffs and free trade. It will be the first trade-related pact that U.S. President Joe Biden has signed with a foreign country since assuming office in January 2021, the source added.
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International Trade Centre Launches Toam in Seychelles for Facilitating Trade (All Africa)
Seychelles' private sector can now report the obstacles and challenges it encounters through a digital platform called the Trade Obstacles Alert Mechanism (TOAM) platform launched on Tuesday.
TOAM is an international initiative of the International Trade Centre (ITC), developed in collaboration with public and private institutions at the national and regional levels.
Headquartered in Geneva, the ITC is a multilateral agency which has a joint mandate with the World Trade Organisation (WTO) and the United Nations (UN) through the United Nations Conference on Trade and Development (UNCTAD).
Export: Nigerian SMEs need to be positioned for global market –Solarin (Daily Sun)
“Export for survival will continue to be a cliche till we become more deliberate about positioning Nigeria’s small and medium Enterprises (SMEs) for the global market.”
Founder of Dasun Integrated Farms Ltd and DIFL Nigeria, Bosun Solarin, made the remark during the Talking Trade and Investment Global February webinar with the Theme: Creating a sustainable Non-Export-Driven-Economy: What Nigeria Must Do.
Solarin noted that Nigeria cannot continue to do things the same way and expect different results, adding that as a nation, we must act with sustainable strategies to realise a better Nigeria we hope for, one that is driven and flourishing based on non-oil export.
Ugandan investors decry continued restrictions in cross border trade (The Independent Uganda)
Ugandan entrepreneurs have questioned the willingness of the political leadership of the East African Community-EAC to make the region one trading bloc and investment destination, as challenges to cross-border trade persist.
The investors, mainly manufacturers, say they cannot ably trade across the region despite assurances by the EAC leadership and the national governments about abolishing non-trade barriers.
This comes as the business community in the region prepares for the East African Procurement Forum and Business Expo at Kololo Ceremonial Grounds from March 23rd to 26th.
Botswana’s diamond trade is expected to depreciate due to reduced demand (Business Insider Africa)
In 2022, the total mining production increased by 8.2%. Although Botswana is the continent's biggest producer of diamonds, this year's improvements in copper and coal will not make up for the fall in this commodity.
About the majority of Botswana's diamonds are produced by Debswana, a joint venture between the government of Botswana and De Beers, a division of Anglo American Plc (AAL.L). In 2022, production increased by 8% to 24.1 million carats. Trading in diamonds increased 41% in the last year, with Botswana also benefiting from Western consumers avoiding Russian stones as a result of its invasion of Ukraine.
Botswana anticipates that the production of diamonds would fall by 1% in 2023 and that growth in the diamond trade will decrease to 7% from 41% in 2018.
Egypt's net foreign assets decline by $1.7bln in January (ZAWYA)
CAIRO - Egypt's net foreign assets (NFAs) declined by 160.2 billion Egyptian pounds in January, likely due to debts maturing and importers clearing backlogs from ports.
NFAs deteriorated to a negative 654.43 billion Egyptian pounds from a negative 494.3 billion at end-December, central bank data showed.
This works out to a decline of $1.70 billion using end-of-month central bank exchange rates, according to Reuters calculations. The central bank allowed the Egyptian pound to depreciate by nearly 24% in January.
Training helps more women in least developed countries benefit from trade (UNCTAD)
Women drive trade in least developed countries (LDCs), with many running small businesses across borders. But they face security risks and significant constraints in accessing productive and financial resources.
To help more women in these countries benefit from trade, UNCTAD trains policymakers on how to design and implement policies that tackle gender inequalities. It also trains academicians and representatives of civil society and the private sector so they can better contribute to this cause.
The online courses equip them with the knowledge to analyse the two-way relationship between trade and gender, and to formulate gender-equitable policies.
“This training has reinforced my desire to support women’s leadership and participation,” said Namizata Binaté-Fofana, one of the 104 participants who took the latest online course on the links between trade and gender.
Namibia, Zambia to revive joint trade committee (The Namibian)
NAMIBIA and Zambia have agreed to revive the joint trade and investment committee (JTIC) to strengthen bilateral cooperation on trade, trade-related and investment matters.
The agreement came after the minister of industrialisation and trade, Lucia Iipumbu, held consultations last week with her Zambian counterpart, Chipoka Mulenga, to explore export market opportunities, and to strengthen existing bilateral cooperation between the two neighbouring countries.
According to a statement issued by ministry spokesperson Elijah Mukubonda, Iipumbu visited Zambia from 21 to 24 February for consultations with Mulenga on trade, industry and investment.
“The meeting was instrumental in supporting and collectively driving the enhanced trade relations agenda between the two countries,” the statement says, adding that the ministers reached agreements on trade relations, as well as the implementation of policies for the mutual benefit of the two countries.
Trans-Sahara Highway: Niger section almost complete (CCE News)
The Trans-Sahara Highway, linking West Africa to North Africa from Lagos to Algiers, has entered its final construction phase.
The 9,400-kilometer road is critical to establishing the African Continental Free Trade Area.
The African Development Fund, the African Development Bank Group’s concessional lending window, is one of the key financiers.
In Niger, the junction between North and West Africa, cross-border traffic is increasing following the construction of the Farié bridge. The Bank Group’s project manager in Niger, Albéric Houssou Olaya Cestmir, speaks about this pan-African integration project.
Trademark, Tony Blair Institute join hands to boost intra-Africa trade (The East African)
Pan-African cross-border trade promoter Trademark Africa and its subsidiary Trade Catalyst Africa (TCA) have entered an agreement to work together with governments adviser Tony Blair Institute (TBI) to accelerate cross-border trade on the continent.
The three non-profit organisations signed a memorandum of understanding (MoU) on Monday agreeing to combine efforts in helping accelerate the implementation of the Africa Continental Free Trade Area (AfCFTA).
Facilitating trade development on the continent, they said, could hasten the gains of AfCFTA, which include lifting at least 30 million people from poverty by 2035 as intra-Africa trade grows by over 50 percent.
US apparel imports from Africa at $3.49 bn in 2022 (Fibre2Fashion)
Trousers and shorts were the dominant products among the total apparel imported by the US from the African continent in 2022. In the country’s total imported garments worth $3.491 billion, trousers and shorts grabbed a share of 45.20 per cent, valued at $1.578 billion. Jerseys, shirts, T-shirts, and innerwear were the other top five products.
The imports of trousers and shorts jumped more than 55 per cent in the last two years after a decline in 2020 due to the COVID-19 pandemic. US’ imports of trousers and shorts slipped 14.21 per cent to $1.014 billion in 2020 but bounced back up by 32.88 per cent to $1.347 billion in 2021. Inbound shipments from African countries further jumped by 17.09 per cent to $1.578 billion in the recently concluded year 2022, according to trade data obtained from Fibre2Fashion’s market insight tool TexPro.
The Third Edition Of The AmCham Business Summit On US – East Africa Trade And Investment To Be Held In March 2023 (Africa.com)
The third edition of the AmCham Business Summit – the premier U.S. – East Africa trade and investment forum – will be held on 29-30 March 2023, in Nairobi, Kenya.
The Summit will provide a strategic platform for enhancing two-way trade and investment between the United States and the East Africa region.
The Summit will be the first high-level event on the continent following the U.S.-Africa Leaders’ Summit and comes when the United States and Kenya have just concluded a productive first round of talks on the U.S. – Kenya Strategic Trade and Investment Partnership (STIP). The Summit is expected to drive new ideas on re-energizing the region’s economy through two-way trade and investment with the United States.
Goods barometer declines further, hinting at fourth quarter trade slump (WTO)
World merchandise trade growth appears to have lost momentum in the fourth quarter of 2022 and is likely to remain weak in the first quarter of 2023, according to the latest WTO Goods Trade Barometer issued on 1 March. The overall barometer index continues to point to weakening trade growth in volume terms after falling to 92.2, down from 96.2 in the previous release and well below the baseline value of 100.
The Goods Trade Barometer is a composite leading indicator for world trade, providing real-time information on the trajectory of merchandise trade relative to recent trends. Barometer values greater than 100 signal above-trend trade volume while values less than 100 suggest that goods trade has either fallen below trend or will do so in the near future. The barometer index (represented by the blue line above) also finished below the merchandise trade volume index (represented by the black line), which stood at 106.6 in the third quarter thanks to resilient exports in Europe and the Americas. Preliminary data suggest that the merchandise trade index will follow the barometer index down once quarterly trade volume statistics for the fourth quarter are released.
US will continue partnering with India to promote transparent, rules-based trading system: Biden administration (Financial Express)
The United States will continue to partner with India to tackle shared challenges, build resilient supply chains, and promote a transparent and rules-based trading system for market economies and democracies, the Biden Administration said Wednesday. The United States and India share a dynamic and important trade and investment relationship, the US Trade Representative said in its President’s 2023 Trade Policy Agenda.
In 2021, the two countries relaunched the Trade Policy Forum (TPF), which had not met since 2017, it said, adding that India and the US convened the 13th meeting of the TPF in Washington in January last year. “Our governments discussed the tremendous potential for growth between our economies and how we can work together to bring a positive impact to working people in both countries,” it said.
“The United States will continue to partner with India to tackle shared challenges, build resilient supply chains, and promote a transparent, rules-based trading system for market economies and democracies,” the USTR said in its India section of the report. According to the USTR, throughout 2022, the US engaged with India on an ongoing basis in response to specific concerns affecting the full range of the bilateral trade relationship.
GCC bilateral trade with Asia to surpass advanced economies by 2028 (Consultancy-me)
Bilateral trade between the Gulf Cooperation Council (GCC) and Asia will accelerate in the coming years, and is set to reach $578 billion by the end of this decade as Gulf economies increasingly pivot to the fast-growing East.
According to new research by UK-based think tank Asia House, two-way trade between the GCC and Asian markets will grow at almost 6% per year over the next decade, in the process seeing the East surpass the GCC’s trade value with advanced economies by 2028.
“Rapidly expanding ties between the Gulf and Asia are creating a fundamental global shift that will have far-ranging implications for international trade, business and politics. The investment corridor is growing in both directions and across various industries, including oil and non-oil sectors,” said Freddie Neve, an Associate at Asia House and co-author of the report.
Applications now open for WTO Training Course on Trade and Gender (WTO)
The WTO will hold an in-person training course on trade and gender for government officials from 2 to 5 May 2023 at its headquarters in Geneva. The course aims to help government officials develop trade policies that promote gender equality and integrate gender considerations in their work. It supports the work of the Informal Working Group on Trade and Gender on seeking to increase women’s participation in global trade. The deadline to submit applications is 15 March 2023.
The WTO Training Course on Trade and Gender conducted in English, will assist participants in improving their knowledge of the trade and gender nexus and the role of the WTO on this issue. At the end of the course, participants will be able to utilize trade and gender concepts and tools in the analysis and development of trade policies.
The programme is built around lectures, discussions, group exercises and interactive brainstorming in eight live training sessions over four days. The course forms part of the WTO's 2022-2023 Biennial Technical Assistance and Training Plan.
EU, US ag leaders discuss plan to thwart Russian control of Ukraine grain trade (Agri-Pulse)
Exports of Ukrainian corn and wheat that supplied Africa, the Middle East, Asia and the European Union all but halted a year ago after Russia invaded the country, closing down Black Sea ports.
Now, there is a scheme to lessen the impact if those ports are closed again, European Commissioner for Agriculture Janusz Wojciechowski tells Agri-Pulse.
Ukrainian Agriculture Minister Mykola Solskyi has proposed that Western allies build dedicated rail lines to allow Ukrainian farmers to ship corn and wheat directly to ports in Poland, Lithuania and Latvia, where ships can take the grain all over the globe, according to Wojciechowski, who said he discussed potential U.S. involvement during meetings last week with Agriculture Secretary Tom Vilsack.
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South Africa swings into a R23 billion trade deficit (Business Tech)
South Africa recorded a preliminary trade balance deficit of R23.05 billion in January 2023.
Despite recording a full-year total trade surplus of R211.6 billion (exports of R2.02 trillion and imports of R1.81 trillion) in 2022, South Africa is importing more than it was exporting at the start of 2023.
The South African Revenue Service (SARS) said that the preliminary trade balance deficit of R23.05 billion for January 2023 is due to exports of R139.36 billion and imports of R162.41 billion.
Call to improve trade between SA and Uganda (SAnews)
There is room for improvement in South Africa and Uganda’s trade relations, says President Cyril Ramaphosa. “When it comes to trade and investment linkages between South Africa and Uganda there is certainly room for improvement,” President Ramaphosa said on Tuesday. The President was speaking at the SA-Uganda Business Forum held at Gallagher Estate in Midrand
President Ramaphosa said he hopes to see a strong showing from Ugandan and South African business at the inaugural Africa Free Continental Trade Area (AfCTA) Business Forum that will be hosted in Cape Town in a few months’ time.
“In 2022, our two-way trade amounted to US$ 130 million, or just over R1.8 billion at the time. We should aim to more than double this to at least R4 billion within the next five years. “South Africa is open to increasing the quantity and diversity of products we source from Uganda, because the success of intra-Africa trade hinges on each of us sourcing from one another and prioritising ‘made and grown in Africa’ products and services.”
South African Envoy: Power Crisis Heightens Focus on Clean Energy Plan (Global Atlanta)
During a short visit to Atlanta last week, South Africa’s ambassador to the United States said an electricity crisis gripping the country is all the more reason to embrace an energy transformation plan focused on renewables. Ambassador Nomindiya Mfeketo said the government has declared a “state of disaster” and has outlined a plan to address persistent blackouts and power rationing at households and businesses that has slowed the machinery of the continent’s most industrialized economy.
Nigeria, PAPSS sign MoU to accelerate cross-border transactions (The Sun Nigeria)
In its bid to connect payments and accelerate Africa’s trade by transforming and facilitating payment, clearing and settlement for cross-border trade across the continent, the Nigerian Exchange Limited (NGX) and African Export-Import Bank (Afreximbank)’s Pan-African Payment and Settlement System (PAPSS) signed a Memorandum of Understanding (MoU) on Tuesday.
This partnership is expected to stimulate an efficient payment system and enhance market liquidity – the current challenges in the securities and trade markets across the continent.
“The dream is becoming a reality and it is coming at an opportune time. The fact is that we cannot promote investments in our securities market without looking at a structure at which cross border transactions can be integrated.
We have a fragmented system and unless we take control of our capital, we cannot promote trade in a fragmented system and this is what we need to unlock and so I am happy with the PAPSS initiative as it will power the effective payment and settlement of cross border transactions”, President, Afreximbank, Benedict Oramah said.
Niger is Africa’s fastest growing country – how to feed 25 million more people in 30 years (The Conversation)
Niger, a landlocked country in the dry Sahel region of Africa, struggles to feed its 25 million people. It currently ranks 115th out of 121 countries on the Global Hunger Index, and the number of people not getting enough to eat has increased from about 13% of the population in 2014 to 20% in 2022.
Things could deteriorate even further as Niger confronts a “perfect storm”. The country has one of the highest population growth rates in the world, with few signs of slowing down. Its fertility rate – at an average of seven children per women – is the highest in the world.
To make matters worse, Niger is one of the regions most vulnerable to climate change. It has high exposure to heat and a low ability to adapt to changes in climate, like increasingly unpredictable rainfall.
We identified three interventions to address food availability: better food supply, with accelerated investments in agricultural research and development less food demand through slower population growth global market integration.
Three RECs resolve about 90% of non-tariff barriers to ease trading as ECOWAS lags (The Guardian Nigeria)
No less than 716 out of 796 (88.9%) of NTBs registered in the online reporting system implemented by the three regional economic communities (RECs), COMESA, East African Community and the Southern Africa Development Community have been resolved, leaving only 80 NTBs left unresolved.
The main NTBs include restrictive licensing, permitting, and other requirements applied at the border. Barriers behind the border, such as unwarranted technical barriers to trade and sanitary and phytosanitary measures are equally prevalent.
For the Economic Community of West African States (ECOWAS) region, the challenge has been various NTBs in the form of infrastructure, language, movement of people and goods among others.
AU’s approval of AfCFTA draft protocols paves way for more trade (The East African)
The African Union has approved the African Continental Free Trade Area (AfCFTA) draft protocols on investment, intellectual property rights and competition policy paving way for their implementation. The move signals conclusion of the AfCFTA Phases I and II protocols that provide a legal basis for the start of trading and gives members the greenlight to domesticate the protocols.
“The Assembly takes note of the executive council recommendations for the consideration and adopts the following Draft Legal Instruments: draft protocol to the agreement establishing the AfCFTA Competition Policy, Investment and on Intellectual Property Rights (IPR),” the AU Communique reads.
Despite West Africa's agricultural potential, young men and women are in a vulnerable situation and face age-specific difficulties, even though they are key operational and political actors in the transformation of agri-food systems (production, processing, storage, distribution and use of food).
In spite of these challenges, there is a largely untapped reservoir of employment opportunities in agriculture to help young people build a better life for themselves while contributing to more productive, efficient and resilient agri-food systems towards the achievement of the 2030 Sustainable Development Goals. To take advantage of all these opportunities, there is a need to invest more in the agro-sylvo-pastoral and fisheries (ASPH) sector and make it more competitive, modern and attractive to all young people, especially young rural migrants who may consider agricultural work to be arduous and unrewarding. This would not only harness their potential labour force for development, but also provide opportunities and a better future and thereby reduce the use of "negative" coping strategies (migration, drugs, crime, terrorism, etc.).
Economic integration: ECOWAS moves to ensure seamless communication in sub-region (The Sun Nigeria)
The Economic Community of West African States (ECOWAS) Parliament, has kick-started a process aimed at ensuring seamless communication within the West African sub-region.
Speaking during the opening ceremony of the Delocalised Meeting of the Joint Committee on Telecommunications and Information Technology/Education, Science and Culture/Trade Customs and Free Movement in Niamey, Niger Republic, Speaker of the ECOWAS Parliament, Sidie Mohamed Tunis, said issues concerning telecommunications, mobile roaming and its tariffs were quite critical and constitute major ingredients in the ECOWAS Integration Process.
Tunis also said in a study on Mobile Internet Adoption in West Africa, conducted by the Bonn Institute of Labour Economics in 2021, it was found that the widespread adoption and use of digital technologies have multifold potential for the sub-region.
Africa must combat illicit trade in natural resources - reports (The North Africa Post)
To protect its abundant natural resources, African countries need to make concerted efforts to combat illicit resource trade, according to reports from the African Development Bank (AfDB) and United Nations Environment Program (UNEP).
Africa boasts a significant amount of the world’s natural resources, both renewable and non-renewable, including arable land, oil, natural gas, minerals and wildlife. The continent contains 30% of the world’s mineral reserves, 8% of natural gas reserves and 12% of oil reserves, according to the UNEP data. Africa holds 40% of the world’s gold reserves, up to 90% of the world’s chromium and platinum reserves, the world’s largest cobalt, diamond, platinum, and uranium reserves. It has 65% of the world’s arable land and 10% of the world’s internal renewable fresh water supply.
Africa as a whole stands to benefit greatly from banding together and utilizing its abundant natural resources to fund development and achieve greater prosperity. But to achieve this, it must ensure that future resource development and exploitation are goal-oriented, climate resilient and sustainable.
Closing the gap for the illegal trade in natural resources can help raise some of the funds that Africa needs to support inclusive prosperity. The unrecorded exchange of natural resources that undermines the economic advancements of the larger African civilization is referred to as “illicit commerce” in this context.
What will it take to boost Africa’s vaccine production? (SciDev.net)
The COVID-19 pandemic has highlighted the importance of vaccines in controlling infectious disease in sub-Saharan Africa and renewed interest in vaccine research and development across the continent. Yet at the moment, Africa produces just one per cent of its routine vaccines.
“Africa has to build that capacity to produce vaccines,” Ebere Okere, senior technical advisor at the Tony Blair Institute for global change and honorary senior public health advisor of the Africa Centres for Disease Control and Prevention, tells SciDev.Net.
This insufficient capacity to produce vaccines leaves the region dependent on imports for its vaccine needs, and makes it vulnerable to a vaccine crisis during health emergencies.
Innovation seen as key to growth for Africa (China Daily)
Leaders and experts have called on African countries to invest in research and development if the continent is to realize sustainable development, industrialization and economic diversification.
Experts who spoke at the fifth African Science, Technology and Innovation Forum held on Sunday and Monday said many nations had underfunded research and development.
Antonio Pedro, acting executive secretary of the Economic Commission for Africa, or ECA, said the allocation for R&D was just 0.5 percent of GDP in most African states. Many countries have fewer than 100 researchers per million inhabitants.
“To build on the innovative spirit, we need to strengthen the enabling environment through informed policies, increase investment in R&D, and harness the support of the private sector more effectively,” he said.
The AfCFTA Guided Trade Initiative (GTI) is the latest development designed to boost trade in the Africa’s continent-wide free trade zone. The GTI was launched in October 2022 with the aim of testing meaningful, continuous trade under AfCFTA and to assist in the development of regional value chains that will allow for more climate-friendly, sustainable trade across the continent.
The GTI will test AfCFTA’s policies, legal framework and operational and institutional environments. There are eight countries participating in the GTI that have all met the minimum requirements in terms of AfCTA’s tariff book and rules of origin – Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia. The GTI will allow the shipment of goods from these countries through customs clearance, including ceramic tiles, sisal fibre, batteries, and beverages and foodstuffs, including tea, coffee, processed meat products, corn starch, sugar, pasta, glucose syrup and dried fruits. African countries receiving these goods will benefit from reduced tariff treatment (and possibly eventually from zero tariffs). The GTI will also focus on increasing opportunities for Small and Medium Enterprises (SMEs), youth and women in trade.
Namibia hosts regional transport system (New Era)
The launch of the Transport Registers and Information Platform System and the Corridor Trip Monitoring System took place yesterday in Windhoek.
Namibia is providing facilities for hosting the TRIPS and CTMS on behalf of the tripartite regional economic communities to facilitate intra-regional trade and cross-border transport and transit. The tripartite is made up of the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC).
TRIPS is an information communication technology (ICT) gateway or switch that inter-connects national transport information systems in order to improve information-sharing and authentication of transit documents, licences, permits and vehicle and driver particulars between and among the 25 participating member states’ regulatory and law enforcement agents within the tripartite region.
African businesses seem to prefer trading with non-African nations over intercontinental trades (Business Insider Africa)
African traders are taking advantage of favorable import tariffs provided by the US, Canada, EU, and Japan (the “Quad nations”) under different preferential trade agreements (PTAs), which has led to significant exports to these quad nations.
This information is according to findings by the UN Conference on Trade and Development (UNCTAD) and the Common Market for Eastern and Southern Africa (Comesa) which showed that enterprises are not fully utilizing comparable advantages under local regional economic communities.
Because of this, commerce between the regional blocs has trailed substantially behind transactions with the Quad nations.
During the same period of exports to the Quad, nations sat at 77.3% while interregional exports came in at 60.8% Uganda and Burundi are two examples of nations that reported exceptionally low levels of PTA usage while utilizing cross-border free trade agreements.
We meet at a crucial moment for Africa and for us all. Our world is experiencing a series of cascading crises that are undermining hard-fought development gains and threatening current and future generations alike. Africa is taking the impact full on, with socioeconomic fall-outs of COVID-19, the climate crisis and the war in Ukraine, all of which Africa have least contributed to.
We do so with the common understanding that through African-led solutions, born on African soil, we can change course and rise to the challenge of Agenda 2063 and the SDGs. Intra-African trade is rising in the region and the Continental Free Trade Agreement has the potential to lift 30 million people out of extreme poverty. Thanks to the leadership in the African Union.
African Heads of State have also endorsed an action plan on sustainable industrialization and economic diversification. We must ensure that the emerging green and digital economies better serve Africa’s people and natural environment. And key to implementation will be the inclusion of our young population.
Africa’s energy transformation is at the heart of these efforts. The development of a sustainable value chain for electric vehicle battery minerals by Economic Commission for Africa (ECA) and other development partners is a promising example.
Mobilizing finance for a just transition, inclusive recovery through innovative partnerships (UNECA)
Addressing the climate crisis and achieving the goals of the historic Paris Agreement require transitioning to a just net-zero economy for which finance is a major lever.
It is against this backdrop that a high-level panel was organized at the ninth session of the Africa Regional Forum on Sustainable Development to explore how to mobilize finance for a just transition and achieve an inclusive recovery as the financing agenda for a just transition moved into a new phase with the announcement at COP27 by richer nations to pay for loss and damage to accelerate the pace towards inclusive growth as we build back better.
A lot has changed since the United Nations charted a reasonable and sustainable route for our people and planet in 2015 to achieve inclusive growth. The effects of climate change, COVID-19, and the war in Ukraine are remaking societies and worsening their economic outlook. In Africa, meeting the goals for Agenda 2030, Agenda 2063 and adapting and mitigating the effects of climate change and the fallouts of the pandemic require access to finance to deliver an inclusive recovery to a sustainable economy.
Scaling up Climate Finance for Emerging Markets and Developing Economies (IMF)
Financing needed to meet adaptation and mitigation goals are estimated at trillions of US dollars annually until 2050. But so far, we are seeing only around 630 billion dollars a year in climate finance across the whole world—with only a fraction going to developing countries.
This is particularly concerning—because emerging and developing economies have vast needs for climate finance. And it underlines why it’s so important for advanced economies to meet or exceed the pledge of providing $100 billion per year in climate finance for developing countries.
This is not just the right thing to do, it is the smart thing to do.
Global nature of trade will prevail, MSC CEO tells TPM23 (Africa Aviation News)
Container shipping will serve as the bedrock for the growth of international trade and commerce, and “global trade will prevail” despite the disruptions of Covid and geopolitical factors, according to MSC CEO Soren Toft.
Speaking for the first time at this year’s Transpacific Maritime Conference known as TPM23, Toft said: “The world will continue to be globalised, but with a more distributed supply chain,” Toft said while giving a detailed overview of the company’s continued growth, expectations for economic recovery, and efforts to realise sustainable shipping.
“The world has seen through the supply chain crunch just how important the logistics and shipping industry really is – we keep global trade moving,” Toft said in an interview with Journal of Commerce’s Peter Tirschwell. “It has really displayed the fundamental role that we have, and customers are now thinking about how to make their supply chain resilient for the future.”
Recommendations of the High-Level Advisory Group on Sustainable and Inclusive Recovery and Growth (World Bank)
A new joint report from an international panel of development experts outlines recommendations needed to support a pathway to green, resilient, and inclusive development. The report, “The Big Push for Transformation through Climate and Development – Recommendations of the High-Level Advisory Group (HLAG) on Sustainable and Inclusive Recovery and Growth,” summarizes insights derived from meetings, consultations, and studies conducted during the 18 months of the HLAG.
“The world is at a pivotal moment. Hard-fought development progress has been eroded by a devastating convergence of recent and ongoing crises. Despite these challenges, there are unique opportunities—from astonishing advances in technology and innovation to unprecedented alignment among international organizations on the approach to green, resilient and inclusive development. The HLAG recommendations provide the world community a path for the necessary action - action at scale and speed”, says Mari Pangestu, HLAG cochair and World Bank Managing Director of Development Policy and Partnerships.
DDG Ellard calls for strengthening global ocean governance at World Ocean Summit (WTO)
The adoption of the Agreement on Fisheries Subsidies at the 12th Ministerial Conference in June 2022 gave considerable justification for optimism about multilateral ocean governance, DDG Ellard said at the discussion moderated by The Economist Editor-in-Chief Zanny Minton Beddoes. Noting that the Agreement was adopted amid the COVID-19 pandemic, the war in Ukraine and a food crisis, DDG Ellard said this gives hope that members can put their differences aside to address issues concerning the global commons.
DDG Ellard further emphasized that two-thirds of WTO members have to deposit instruments of acceptance at the WTO for the Agreement to enter into force and start delivering its benefits for ocean sustainability.
DG Okonjo-Iweala: “We cannot afford to have an MC13 that does not deliver” (WTO)
“Excellencies, exactly on this day next year, Ministers will be in Abu Dhabi for MC13,” the Director-General told members. “We have less than a year to ensure that the meeting yields meaningful outcomes. Ten months is a short time in WTO negotiations, so we have to step up our efforts, starting now.”
“We need to show that we can deliver ourselves, even as our sister organizations are under pressure to reform and perform,” the DG continued. “So we cannot afford to have an MC13 that does not deliver.”
MC13 is due to take place in Abu Dhabi, United Arab Emirates, during the week of 26 February 2024.
Fight against climate change will worsen existing inequality in global trade: CSE and DTE (Down To Earth Magazine)
In the name of climate action, countries are introducing policies which can spark trade wars Developed countries of the world are reneging on free trade in the name of climate change, says a new analysis and the subject of its latest cover story by Down To Earth (DTE) magazine. Armed with massive subsidies and tariffs, the US and EU are leading this trend towards protectionism. This may change the global trade system as we know it.
Farm talks restart with positive momentum, focus on food security (WTO)
At a meeting of the Committee on Agriculture in Special Session — the Committee’s negotiation arm — on 27 February, the recently elected chair, Ambassador Alparslan Acarsoy of Türkiye, said his extensive consultations revealed members’ strong commitment to achieving an outcome with a focus on food security at the 13th Ministerial Conference (MC13) slated for February 2024. He highlighted the importance of adopting a new mindset as negotiations resumed and said he planned to convene a series of seminars at end-March to gain a better understanding of the issues under negotiation.
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Infrastructure is key to SA’s development (SAnews)
Improving government’s performance as a contributor to the construction sector is key to unlocking the country’s economic and social development, says the Department of Public Works and Infrastructure. “Government is a key player in the construction sector accounting for about 40% of the country’s total infrastructure budget,” the department said in a statement. At least R117.5 billion in budget was allocated to infrastructure in the 2022/23 financial year and it is estimated that government expenditure will total R903billion over the next three years.
SA business people pleased with trade leads generated in UAE (SAnews)
South African businesspeople who participated in the Gulfood Exhibition that took place in Dubai, United Arab Emirates last week, have said they are pleased with the trade leads that they generated. They recorded over 4 000 promising trade leads that they hope will soon translate into substantially tangible deals.
The 16 agro-processing companies, including the South African Fruit and Vegetables Canners Export Council (SAFVEC), showcased their products in a National Pavilion that was set up by the Department of Trade, Industry and Competition (the dtic). The main objective of the support provided by the dtic
SA has an action plan to get off the grey list (SAnews)
Government is determined to address the concerns raised by the Financial Action Task Force (FATF) as quickly as possible with the fundamentals in place to get off the “grey list”. In his weekly newsletter to the nation, President Cyril Ramaphosa said government has gone through a rigorous process of addressing the issues that FATF has raised.
This comes after South Africa was put on a “grey list” last week by the FATF for falling short of certain international standards for the combating of money laundering and other serious financial crimes.
Uganda-South Africa Business summit kicks off today (New Vision)
The first Uganda-South Africa, Trade, Tourism and Investment Summit gets underway Monday (today) in Pretoria, South Africa. The summit that ends on Wednesday is expected to attract 300 delegates, both private and public, who include the business community, heads of government agencies, and policymakers among others, according to Uganda Investment Authority (UIA).
UIA says that the summit will provide a platform for the private sector, government and business regulatory agencies to exchange views, ideas, and information on how to facilitate investment and also identify existing business and investment opportunities for Uganda. Areas of discussion at the summit include Tourism, Trade and Investment, Finance, Insurance, Professional Service, Manufacturing, Mining, Energy Resources, Agro-processing, ICT, Power Generation, education, and Infrastructure development among others.
NamRA ensures Namibia pockets billions (New Era)
Preliminary outturns in many respects point to improving fiscal fundamentals aligned to positive domestic economic growth prospects and buoyancy arising from tax administration reforms, Finance and Public Enterprises Minister Iipumbu Shiimi has said.
Tabling his 2023/24 national budget last week in the National Assembly, he noted that by the end of January 2023, preliminary revenue outturn stood at N$56.2 billion, reflecting a collection rate of 87.8% over 10 months.
Total collections of N$74.7 billion are estimated for FY2023/24. The significant boost to revenues stems from an upward revision in receipts from the Southern African Customs Union (SACU) pool to N$24.3 billion.
Kenya proposes lavish spending amid missed revenue targets (The East African)
Kenya’s National Treasury plans to raise government expenditure by 15.9 percent to Ksh3.66 trillion (about $29.2 billion) in the next financial year, anchored on a projected increase in tax revenue. But latest figures show that Kenya Revenue Authority (KRA) has failed to meet current targets.
The draft medium-term national Budget Policy Statement released this past week shows that the government plans to increase the budget size to $40.5 billion by 2026, supported by an expected sustained increase in tax revenue.
The Treasury expects revenue to increase to $23 billion next year, a 15 percent rise, and to at least $33.4 billion by 2026, mostly driven by anticipated growth in tax revenue and a slight improvement in appropriations in aid.
Kenya and Uganda opt for border post to stop bandits (The East African)
Kenya and Uganda have initiated talks for the opening of a one-stop border post in Lokiriama in northwest Kenya, that will seek to open up trade and fight livestock raids. Kenya’s Interior Principal Secretary Raymond Omollo said the border post would enhance movement and trade between the two nations and investments in the cross-border road network and improved security and surveillance.
The two countries revived their September 2019 memorandum of understanding that sought to enhance cross-border trade between the Turkana and Karamoja, by establishing immigration and customs border points at Lokiriama, Nawountos and Nakitong’o.
“The two governments should mobilise resources for peace dividend projects and to facilitate peace-building initiatives in the region for sustainable peace and security,” the joint statement concluded.
Lack of cash crumbling business activities, livelihood in Nigeria (Africanews)
Africa’s most populous country Nigeria has withdrawn 200-, 500- and 1000-naira notes from circulation following the redesign of the Nigerian currency. After the unveiling of the notes people have been struggling to access them from banks and Automated teller machine (ATM) cash points. Since the full implementation of the policy on February 1, and the deadline for validity of the old notes passed, getting the new naira notes has been a challenge.
While people continue to grapple with the scarcity of cash challenge, the industrial sector is also lamenting the policy, Francis Meshioye the president of the Manufacturers Association of Nigeria (MAN) said the scarcity of the Naira is having an impact on production output.
Speaking on the impact of the scarcity, Meshioye said ‘it is affecting all economy and manufacturing sector in particular, because inability of people to access cash particularly for products that cannot be easily procured by electronic transfer will imply, they will be backlog in the stock of those goods.’
Govt scouts for more value chain development aid (The Zimbabwe Independent)
Government says it hopes to increase financial resources towards value chain development following the recently announced US$22,5 million revolving fund to support the endeavour. Speaking at the validation workshop for the fertiliser, pharmaceutical and packaging subsector in Harare on Friday, Industry and Commerce minister Sekai Nzenza said they had placed innovation hubs to nurture and develop local ideas and solutions to industrial challenges.
“The government is also making efforts to avail financial resources to support value chain development. A total of US$ 22,5 million was availed under the Retooling for New Equipment and Replacement for the Value Chains Revolving Fund,” she said.
“The government has also put in place innovation hubs to nurture and develop local ideas and solutions to industrial challenges. In this regard, we exhort the private sector to partner with institutes of higher learning and provide them with the challenges they are facing, so that we may develop local solutions to these challenges.”
AfCFTA won’t be used for dumping, Kgafela assures (Mmegi Online)
Last Sunday, President Mokgweetsi Masisi officially submitted the country’s instruments of ratification to the African Union (AU) Commission, ending a four-year journey of negotiations over the pan-African trade deal. Botswana was the 46th country to ratify the deal out of 54 African countries that signed the original African Continent Free Trade Area (AfCFTA) in 2018.
Kgafela said the AfCFTA provides protections such as anti-dumping provisions, countervailing and anti-countervailing as well as protection of infant industry that will cover local businesses from dumping, especially in key manufacturing sectors.
The fundamental role of the African Continental Free Trade Area (AfCFTA) in overcoming the peculiar challenges faced by Africa’s Landlocked Developing Countries (LLDCs) and Small Island Developing States (SIDS) was highlighted today in Harare at a high-level event jointly organized by the UN Economic Commission for Africa (ECA) and the Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS).
Research and development: key to Africa’s industrialization and economic diversification (UNECA)
Investing in research and development by African countries will deliver sustainable industrialization and economic diversification on the continent, says Antonio Pedro, Acting Executive Secretary Economic Commission for Africa (ECA). This will enable the continent harness technology for a green, inclusive and resilient Africa.
Mr Pedro was speaking at the opening of the Fifth African Science, Technology and Innovation (STI) Forum 2023, a side event ahead of upcoming 9th Africa Regional Forum on Sustainable Development (ARFSD) in Niemey, Niger. The theme of this year’s Forum is “Accelerating development and diffusion of emerging technologies”.
“To build on the innovative spirit, we need to strengthen the enabling environment through informed policies, increase investment in the research and development, and harness the support of the private sector more effectively,” noted the ECA executive secretary, adding that Africa should be at the forefront of a green transformation to accelerate growth, diversify economies and deliver on the SDGs and Agenda 2063. “One key opportunity for us lies in the renewable energy market. The value in this market in 2020 was estimated at $881.7 billion and is projected to reach $1,977.6 billion by 2030”
EAC secures funds for feasibility study on the Northern Corridor (The Standard)
The East African Community (EAC) has secured over Sh1.5 billion ($1.4 million) for a feasibility study on a key section of the Northern Transport Corridor linking Kenya and Uganda. EAC Planning and Infrastructure Deputy Secretary General Steven Mlote told The Standard that the funding – from the African Development Bank – is for conducting a feasibility study on the 256km multinational Kisumu-Kisian-Busia/Kakira – Malaba-Busitema-Busia expressway project.
Mlote said that part of the funding would also be for the feasibility studies for upgrading the Malaba, Busia and Lwakhakha border posts along the Kenya-Uganda border.
To meet the goals of the Paris Climate Agreement, the SDGs and Africa’s Agenda 2063, the world must decarbonize its growth models and shift to renewable energy sources, says Acting Executive Secretary of the Economic Commission for Africa (ECA), Antonio Pedro. Speaking during a panel discussion on ‘Building a regional battery mineral value chain in Africa,’ Mr Pedro said the shift to renewable energy sources was a resource-intensive path that required greater production of a variety of minerals that are central to decarbonization.
“We have clear opportunities not only from the global green mineral boom but also from our domestic achievements, such as the African Continental Free-Trade Area to facilitate the development of regional value chains for these green economy products,” Mr. Pedro said, noting several innovative financing mechanisms that have been developed to support initiatives such as the battery and electric vehicles value chains.
Africa needs to curb emissions to attract investments (UNECA)
The Institute for Development and Economic Planning (IDEP) held on Saturday 25 February a webinar on “How Africa can go green through a clean energy strategy” in preparation for the 9th Session of the Africa Regional Forum on Sustainable Development scheduled to take place in Niamey (Niger) from 28 February to March 2nd, 2023.
Urbanization and population growth are putting intense pressure on Africa’s energy infrastructure. Demand is significantly outstripping supply leading to power cuts and limiting economic development.
Rising demand and oil prices, the looming depletion of global oil stocks and climate change mean that Africa’s traditional reliance on conventional energy sources is no longer a viable option. However, the continent’s clean energy transition is not without challenges either.
Africa is the continent with the highest renewable energy potential in the world and is the one with the least access to it, said Andrea Renzulli, Senior Expert at RES4AFRICA Foundation. Against global trends, the continent’s renewable energy investments have reached a historical low, accounting for only six percent of total investments in renewable energy.
The President of the Republic of Seychelles, His Excellency Mr. Wavel Ramkalawan, has called for concerted efforts among members of the Southern African Development Community (SADC) to harness the potential of tourism, blue economy and wildlife as drivers of economic growth, regional integration and development.
The President stressed the importance of putting issues of environment, climate change, maritime security, and blue economy among the key priorities of the SADC regional development agenda, as the people of Seychelles, like other Island nations, depend on the ocean resources for their sustenance and livelihood. On this note, the President called for regional preparedness against disasters emanating from climate change which, in the case of Seychelles, affect the tourism and fisheries sectors, two of the key pillars and contributors to Seychelles Gross Domestic Product (GDP), employment and foreign exchange.
The Global Center on Adaptation (GCA) in collaboration with the African Development Bank and the Wangari Mathai Institute have concluded a three-day regional forum on the future of resilient food systems in Africa.
The Forum, called the Future of Resilient Food Systems in Africa – AAAP Digital Solutions for a Changing Climate provided training aimed at strengthening the capacity of stakeholders from across Eastern Africa to design and implement solutions to improve food security and climate resilience and to facilitate knowledge sharing among farmers on approaches to scale up the use of Digital climate-informed advisory services, or DCAS.
Republic of Mali follows Togo, Niger and Burkina Faso in adopting factoring law, developed in collaboration with Afreximbank (Afreximbank)
African Export-Import Bank (Afreximbank) celebrates the adoption and enactment of a factoring law in the Republic of Mali. Afreximbank’s Factoring Model Law was used as a guide for the development of La Banque des États de l’Afrique de l’Ouest (BCEAO’s) factoring law, which the Republic of Mali has adopted. This conforms to the Bank’s Factoring Strategy, which aims to provide legal and regulatory support to African countries in their pursuit of factoring as an alternative financing option.
The enactment of the law in Mali creates a facilitative legal and regulatory environment for factoring to thrive in the country, thereby supporting SMEs with access to another form of financing. The move, which follows similar legislative developments in Togo, Niger and Burkina Faso, constitutes a crucial milestone in the broader African effort to increase its share of global factoring transactions from its current level of around 1%. Moreover, Mali’s decision may well encourage other BCEAO’s Member States to adopt and domesticate the law.
Factoring offers an alternative trade finance instrument to African businesses, and therefore having a robust legal regime that promotes factoring will provide a major boost to the emergence and growth of SMEs and factoring companies in the Republic of Mali and beyond. By creating a legal infrastructure which diversifies SME financing, and provides credibility and assurance to investors, the law will significantly improve access to finance for previously excluded small and medium sized businesses in Mali.
Ugandan president Museveni: UK ‘missing trade opportunities’ with Commonwealth amid food shortages (The Grocer)
Ugandan president Yoweri Museveni said the UK was “underutilising” its trade links with many African countries in light of fruit & veg shortages. Museveni – who has been in power for over four decades – said the UK could have “absolutely” avoided the current fruit & veg shortages if it had set up more robust trade deals with Uganda and other African nations post-Brexit.
The president told The Grocer the UK was “missing opportunities” for trade with its Commonwealth partners like Uganda, and that farmers in the East African nation were ready to ramp up exports of fresh produce and coffee.
In major economic shocks best response combines all out large scale policies (IMF)
Economists will be studying the pandemic for generations to learn from the dramatic global downturn and the ensuing credit crunch, but one important lesson about the scope of action needed to contain the next global crisis is already coming into focus.
During the pandemic, countries often used all-out responses that combined large fiscal, monetary, and prudential policies like grants, credit facilities, and relaxed capital requirements. As we demonstrate in a new working paper, this kind of expansive response may be needed to support corporate borrowing and credit growth in major future crises that combine global supply and demand shocks.
Our findings are based on an analysis using a dataset we made available last year tracking national announcements of economic and financial policy responses to the pandemic. Over the course of 2020, countries most frequently used packages of more than one fiscal, monetary, or prudential policy, while standalone policy announcements were rare.
With global growth set to slow in 2023 and remain below its historical average, too many people in too many countries are struggling to make ends meet—a point that I highlighted in my recent blog on policy priorities for the G20. The international community, therefore, has a responsibility to come together to find solutions for the most vulnerable members of our global family. This calls for urgent action to strengthen the international financial architecture, especially in the area of debt resolution and strengthening the global financial safety net.
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Uganda - South Africa Investment Summit opens next week in South Africa (Monitor)
The Ugandan business community has been flagged off in preparation for the South Africa Trade Investment and Tourism summit, scheduled at the Gallagher Convention Center, Midrand, South Africa, from February 27th to 28th.
Organised jointly by the Government of Uganda and the Republic of South Africa, under the theme "Boosting Trade and Investment Relations Between South Africa and Uganda", the summit will provide a platform for the business community and government agencies to identify existing and emerging business and investment opportunities of mutual benefit.
The purpose is to bring buyers and sellers from both countries along with investors in the value chain of the key export products from Uganda, together.
Uganda has a target of US$6 billion in non-oil exports between 2023 and 2028, to stave off growing unemployment, restore sustained growth in key sectors of the economy post Covid-19 and increase value addition in agriculture along with more manufacturing in country.
Tanzania: 2023 Article IV Consultation (IMF)
The authorities’ reform program aims at strengthening the economic recovery, preserving macroeconomic stability, and supporting structural reforms toward sustainable and inclusive growth.
Key policy actions of the reform program focus on strengthening fiscal space to allow for much needed social spending and high-yield public investment, advancing structural reforms to create an enabling environment for investment and job creation, and modernizing monetary policy and financial supervision to safeguard macro-financial stability and promote financial deepening.
IMF Executive Board concludes 2022 Article IV Consultation with Angola (IMF)
Angola’s economy continued to recover from the COVID-19 pandemic in 2022, supported by higher oil prices, improved oil production, and resilient non-oil activity. Non-oil growth was broad-based despite a challenging external environment. Growth is estimated at 3.5 percent for 2023. Headline inflation declined significantly to 13.8 percent y/y at end-December 2022, driven by lower global food prices, a stronger kwanza, and previous efforts by the central bank to tighten monetary policy.
Uganda’s export earnings increased by 10.7 percent – Finance (Monitor)
Uganda exported merchandise worth $371.81 million in December 2022, indicating an increase of 10.7 percent from $335.77 million registered the month before, helping the government to raise funds to cater for the needs of citizens.
The Ministry of Finance, Planning and Economic Development said in the performance of the economy monthly report of January 2023 released on February 21 that the growth was attributed to increased receipts for maize and mineral products, among others.
The Ministry of Finance said during the month of December 2022, maize exports increased from $4.34 million in November 2022 to $20.48 million in December 2022. The rise was partly due to the onset of the maize harvesting season as well as the heightened demand for Uganda’s maize by the neighboring countries.
Kenya Ports Authority moves cargo handling services to e-portal (The East African)
The Kenya Ports Authority (KPA) has moved its cargo handling services to the government portal e-Citizen to comply with the current administration’s target of going paperless in its transactions. Various port users have applauded the KPA for adopting technology and going paperless in its transaction by going live on the e-Citizen platform starting Tuesday this week.
Uganda still Kenya’s top regional tourism source market, report says (The East African)
Uganda has for another year running retained its spot as Kenya’s biggest tourism source market in the region according to new data released by tourism authorities in Nairobi.
This data is contained in the new Kenya’s tourism sector performance report for 2022 released Wednesday at the Fairmont Norfolk Hotel in Nairobi by the country’s Tourism Cabinet Secretary Peninah Malonza.
The report noted that Uganda contributed 12 percent of total arrivals to Kenya in 2022, coming only second to the United States which took the top overall spot with a 16 percent contribution.
European Union signs $27m funding to boost Kenya’s exports (The East African)
The European Union on Tuesday signed a $27 million funding for TradeMark Africa to facilitate a five-year programme that will boost Kenya’s exports and support the government in creating a conducive business environment. The signing that took place during the EU-Kenya Business Forum was witnessed by Kenya’s President William Ruto, the EU Ambassador to Kenya Henriette Geiger and Trade Cabinet Secretary Moses Kuria, among other dignitaries.
The facility, named Business Environment and Export Enhancement Programme (Beeep) will be implemented in partnership with the government of Kenya. Beeep will complement the goal of the Integrated National Export Development and Promotion Strategy (INEDPS) that seeks to grow agricultural exports by an average of 25 percent annually.
The overarching goal is to close the persistent negative balance of trade through export growth, factor productivity and stimulate economic development and job creation, in a sustainable and inclusive manner. “As matters stand now, the EU is the largest destination for Kenya’s exports accounting for about Ksh170 billion ($1.3 billion) in 2021, said Ruto when he officially opened the two-day EU-Kenya business forum, which brings together 500 business people – 250 from Kenya and 250 from the European Union.
Morocco is Africa’s 3rd Most Attractive Country for Tourism, 4th for Trade (Morocco World News)
Spanish consulting firm Bloom Consulting has ranked Morocco as one the best places for investors and tourists interested in Africa, with the firm ranking the North African kingdom as the continent’s third most attractive destination for tourism and the fourth best country for trade on the African continent.
Bloom Consulting has published its 2022-2023 Country Brand Rankings for tourism and trade, featuring a total of 80 countries worldwide. The tourism ranking examines the participating countries’ economic performance, digital appeal, online performance and presence, as well as the Country Brand Strategy (CBS).
Kenya, Uganda start talks to create one-stop border post in bandit-prone area (The Independent Uganda)
Kenya and Uganda have initiated talks for the opening of a One-Stop Border Post in Lokiriama in northwest Kenya to boost trade and open up the far-flung area, the Interior Ministry said Monday evening. Kenya’s Interior Principal Secretary Raymond Omollo said the border post would enhance movement and trade between the two nations and investments in the cross-border road network and improved security and surveillance.
“Kenya is also keen on reviewing and revising the agreement signed with Uganda in support of the cross-border program for sustainable peace and development to align with its new priorities and emerging issues,” Omollo said in a statement issued in Nairobi, the capital of Kenya.
Close to 90% of Non-Tariff Barriers reported in the Tripartite region have been resolved (COMESA)
Overall, 716 out of 796 (88.9%) of NTBs registered in the online reporting system implemented by the three regional economic communities (RECs), COMESA, East African Community and the Southern Africa Development Community have been resolved. Only 80 NTBs remain unresolved.
The main NTBs include restrictive licensing, permitting, and other requirements applied at the border. Barriers behind the border, such as unwarranted technical barriers to trade and sanitary and phytosanitary measures are equally prevalent.
The tripartite NTBs Online and SMS Reporting, Monitoring and Eliminating system www.tradebarriers.org has been operational since 2010 and has remained an effective tool in the resolution of cross-border trade challenges. It was established to support market integration by implementing a harmonized NTBs elimination programme in COMESA, EAC and SADC tripartite region.
Feature: Africa’s natural resources and illicit trade (The Zimbabwe Independent)
Africa’s natural resource wealth necessitates concerted efforts to combat illicit resource trade. Natural resources abound in Africa, including arable land, oil, natural gas, minerals and wildlife. The continent contains a significant amount of the world’s natural resources, both renewable and non-renewable. According to the United Nations Environment Programme, Africa contains 30% of the world’s mineral reserves, 8% of natural gas reserves and 12% of oil reserves.
The continent as a whole stand to benefit greatly from banding together and utilising its abundant natural resources to fund development and achieve greater prosperity.
It must, however, ensure that future resource development and exploitation are goal-oriented, climate resilient and sustainable.
African Development Bank holds first industrial and trade business opportunity forum in Egypt (AfDB)
The African Development Bank, in collaboration with the Egyptian Commercial Services (ECS) department of the Egyptian Ministry of Industry and Trade, has ended its first Industrial and Trade Business Opportunity Seminar (IT-BOS) dedicated to establishing business relationships with Egyptian manufacturers and exporters.
Dr. Abdu Mukhtar, African Development Bank Director of Industrial and Trade Department, delivered the opening address on behalf of Solomon Quaynor, Vice President of Private Sector, Infrastructure, and Industrialization.
He highlighted the purpose of the seminar: “to establish solid business relations and explore collaboration opportunities with the Egyptian industrial business community for growth in the domestic market and to deepen Egyptian regional integration in Africa.”
“African investments in Africa are below acceptable levels, Africa has endless business opportunities that are often unknown to businesses in neighboring countries – a cardinal sin in this information technology age. We should develop a common manual of doing business to facilitate intra-Africa trade we should proactively address the sources of high cost of doing intra-Africa business,” underscored Ambassador, Mohamed El-Badry, Assistant to the Minister for African Affairs.
AfCFTA International labour standards deficit must be addressed (IndustriALL)
Trade unions want standards that include the decent work agenda: creation of decent jobs, respect of fundamental rights at work, social dialogue, and social protection. They were clear that they want the decent work agenda and international standards on labour migration to be incorporated as clauses in the protocols when the agreement is up for review.
he Africa Union, has declared 2023 as the “Year of the AfCFTA” with a focus on implementation of the agreement in tourism, transport, communication, financial, and other services. However, unions also want the trade agreement to help facilitate the transition from informal to formal economies, and to contribute to economic development, regional integration, and the industrialization of the continent. Further, they want the agreement to promote youth and women employment to reverse their marginalization and exclusion from economic activities.
Regional integration is key to food and energy security, says US envoy (Arab News)
In an effort to encourage and support regional cooperation in efforts to combat climate change and improve food and energy security, the US is working with Oman, the UAE and India to develop projects that benefit the region and the wider international community, a leading American official said on Thursday.
Speaking during a briefing at the end of official visits to the UAE and Oman, Jose W. Fernandez, the US under secretary of state for economic growth, energy and the environment, said he had discussed projects related to food security, clean energy and space with government officials and business leaders from both countries.
Members’ discussion on e-commerce work programme highlights need to bridge digital divide (WTO)
India presented its proposal on the role of digital public infrastructure in promoting e-commerce. The proposal outlines issues limiting access to and adoption of digital technologies. The proposal notes that a digital public infrastructure underpins digital transactions and enables more inclusive service delivery and innovation across public and private sectors. The proposal further outlines features that are important to obtain an ideal infrastructure.
WTO note finds global trade resilient following one year of war in Ukraine (WTO)
The note titled “One year of war in Ukraine: Assessing the impact on global trade and development” estimates that trade growth in 2022 was above the WTO trade forecast of 3% issued in April and substantially higher than its estimates for more pessimistic scenarios for the year. The stability of global trade was also evident in global supply chains, confirmed by the 4% year-on-year growth of trade in intermediate goods in the second quarter of 2022.
“Global trade has held up well in the face of the war in Ukraine. Despite the devastation we have seen one year on, trade flows remained open. We have not seen the worst predictions foreseen at the onset of the war. Sharply higher food prices and supply shortages have not materialized thanks to the
World warming at rate well above what Paris Agreement requires, Anglo CEO warns (Engineering News)
The world is on a trajectory to reach 2.7 °C of warming above pre-industrial levels, which is quite a long way mathematically from the 1.5 °C that is required by the Paris Agreement. This was pointed out by Anglo American CEO Duncan Wanblad, quoting independent sources such as Climate Action Tracker.
“It was a tough year with extreme weather… there are disruptions that we’re seeing more frequently in extreme weather events,” said Wanblad, following the release of the London- and Johannesburg-listed company’s second-highest set of 2022 financial results following its record performance
The developing world is facing a giant shortage of capital, energy, and growth potential. With interest rates rising and currency depreciation pushing prices up, the risk of financial stress is particularly acute among emerging and developing economies, especially those with large current account deficits and reliance on foreign capital inflows. Some face a full-blown financial crisis.
Global activity is expected to remain below its pre-pandemic trend for the foreseeable future, and the years between 2020 and 2024 are set to be the weakest five years for global growth since at least 1960 due to the multiple crises.
A key issue in the evolution is the financing of global public goods. This is already an important focus, and our financing for GPGs has expanded dramatically. It more than tripled over the past decade, and doubled during my presidency, reaching over $100 billion in the three-year period FY20-22, with over half of this amount in climate finance. Our upcoming report on the Enablers of Inclusive Cities, a G20 request for the Infrastructure G20 agenda, will review policy instruments for urban resilience and sustainability.
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Ministers welcome 2023 Budget (SAnews)
Government Ministers have welcomed the 2023 Budget Speech, saying Finance Minister Enoch Godongwana did his best to extricate the country from an economic conundrum. “The conditions under which the minister had to work were extremely toxic but he has done his best,” Home Affairs Minister, Dr Aaron Motsoaledi, told SAnews. “He doesn’t have to mention department by department but we have our letters of allocation. The main thing for the Department of Home Affairs in the letter of allocation is to increase the border guards at the border gates,” he said, in reference to the newly established Border Management Authority (BMA).
In this regard, National Treasury in the 2023 Budget Review document, an annexure in Minister Godongwana’s speech, said R3.3 billion would over the next three years be allocated to setting the BMA’s wheels in motion.
Govt aims to stimulate renewables investment with R9bn in tax incentives, reworked bounce-back scheme (Engineering News)
South Africa’s 2023 Budget includes tax incentives worth R9-billion to support businesses and households invest in renewable energy, including rooftop solar, in a bid to offset the impact of intensifying power cuts.
Finance Minister Enoch Godongwana said the decision to incentivise renewables investments had been taken to enable customers to alleviate pressure on the grid, but also stressed that it was not an open-ended incentive.
He announced that the tax incentive available for businesses to promote renewable energy would be temporarily expanded beyond its current design, which allowed businesses to deduct the costs of qualifying investments over a one- or three-year period, creating a cash flow benefit in the early years of
Namibia tables bigger fiscal budget for 2023/24 financial year (China.org.cn)
Namibian Minister of Finance and Public Enterprises Iipumbu Shiimi on Wednesday proposed an 84.6 billion Namibian dollars (about 5.7 billion U.S. dollars) budget for the financial year 2023/2024. Speaking at parliament while tabling the national budget speech, Shiimi said the earmarked amount includes 2 billion Namibia dollars in development projects funded outside the State Revenue Fund and 10 billion Namibia dollars in debt servicing costs.
According to Shiimi, 2023/2024 national budget is anchored on three fiscal pillars of pro-sustainability under which it aims to reduce the budget deficit, pro-poor by providing support for the poor via various social safety nets, and pro-growth by optimizing economic growth.
On the revenue front, total collections of 74.7 billion Namibia dollars are estimated for the financial year 2023/24, about 16.5 percent higher than the revised estimates for the financial year 2022/23, he said, adding that the significant boost to revenues stems from an upward revision in receipts from the Southern African Customs Union (SACU) customs pool to 24.3 billion Namibia dollars, around 6.4 billion Namibia dollars higher than the previous estimates.
Donated clothes an environmental disaster in disguise for developing world (RFI)
As much as one third of the clothing sent from the wealthy west to developing countries every year may be ending up as landfill. Unwearable polyester garments are little more than “plastic waste in disguise,” according to a report on Kenya by the Changing Markets Foundation. Kenya is the destination for 900 million pieces of used clothing every year.
Much of the clothing shipped to the country is made from petroleum-based materials such as polyester.When the clothes cannot be used, they end up burning in landfills near Nairobi, exposing waste pickers and local residents to toxic fumes.Tonnes of textiles are also swept into waterways, eventually breaking down into microfibres which enter the foodchain.
“More than one in three pieces of used clothing shipped to Kenya is a form of plastic waste in disguise and a substantial element of toxic plastic pollution in the country,” the report by the Changing Markets Foundation says.
Rwanda Economic Update: Nature-based Tourism Holds Tremendous Economic Potential (World Bank)
The Rwandan economy continued to achieve strong growth in 2022 despite global headwinds and an unprecedented increase in food prices, according to the 20th edition of the Rwanda Economic Update report.
Rwanda’s GDP grew by 8.4 percent in the first three quarters of 2022, after reaching 11 percent in 2021. Growth was spurred by the services sector, especially the revival of tourism, leading to the improvement of employment indicators to levels similar to those at the beginning of the COVID-19 pandemic in early 2020.
However, rising food prices may have exacerbated poverty and food insecurity, according to the Rwanda Economic Update. The increase in international commodity prices, related to the war in Ukraine combined with the poor harvest in Rwanda, have led to substantial increases in energy, transport, and food prices, with urban inflation rising to 21.7 percent in November 2022. Rising food prices particularly affected the poor, who devote a large share of their spending to food and appear to have faced higher food inflation than richer households did. Measures adopted by the government to mitigate the effects of inflation over the past year include an increase in subsidies (primarily on fuels, fertilizers, seeds, and public transit), increased spending on social protection, and increases in teachers’ salaries, as well as government contributions to school feeding programs.
‘Seize industrial park opportunities’ (The Herald)
With African countries pursuing the ambitious industrialisation agenda through the establishment of Common Agro-Industrial Parks (CAIPs), the private sector should ride on the “goodwill and strategic intentions” already shown by some Governments, Industry and Commerce Minister Dr Sekai Nzenza said last week.
Zimbabwe and Zambia are jointly exploring various value chain possibilities through the establishment of a CAAPs, focusing on cotton, maize, wheat, rice, soya beans, sugar, livestock, leather as well as dairy.
With support from the United Nations Economic Commission for Africa and the sub-regional office for southern Africa, milestones achieved to date include the development of a detailed roadmap and action plan, a pre-feasibility study on the proposed CAIPs between the two countries and a study on the regulatory and policy framework.
East Africa: Tanzania and Burundi ordered to adopt EAC bloc’s roaming rates (Ecofin Agency)
Since 2014, East African Community member countries have been implementing measures to harmonize roaming rates. Four countries have implemented the measures. They are namely Kenya, Rwanda, Uganda, and South Sudan. The East African Community (EAC) Sectoral Council on Transport, Communications, and Meteorology has ordered Tanzania and Burundi to harmonize their roaming rates with community standards by August 30, 2023. The two countries are required to present the tariff harmonization status at the next EAC Heads of State Summit.
Push for Universal Energy Access: Joining Hands to Accelerate the Pace of Electrification in Africa (World Bank)
A presidential roundtable on the side-lines of the 36th Ordinary Session of the Assembly of the African Union has called for the acceleration of financing for energy access in Africa with clear targets and steps for ensuring the achievement of universal energy access by 2030.
In her opening remarks H.E. Dr Amani Abou-Zeid, African Union Commissioner for Infrastructure and Energy accentuated that energy is a bedrock for the success of every development sector and thus increased effort is required in ensuring affordable and reliable access. Dr Amani stated that “Africa’s key priorities and initiatives including industrialisation, AfCFTA, agricultural development, food security, poverty alleviation, job creation and regional integration, as well as the achievement of the SDGs, are all dependent on modern and universal energy access and services.”
The African Single Electricity Market (AfSEM) was noted to be a key strategic element of facilitating energy access and enhancing energy security in Africa and, therefore, the AU Member States, regional economic communities and their specialised institutions were urged to play their part in facilitating its operationalisation.
China’s strong partnership can help Africa deliver AfCFTA (Capital News)
African Union leaders have concluded this year’s Summit with a rallying call to expedite the implementation of the African Continental Free Trade Area (AfCFTA).
One of Africa’s enduring international partners in the economic development domain is China. During the AU Summit, Chinese leader Xi Jinping sent congratulatory message; reaffirming Beijing’s readiness to work with the Africa in generate enduring development. Already, China is Africa’s largest trading partner and third largest foreign direct investor. Chinese firms have been key in setting up the base to realize many of the AfCFTA aspirations; contributing over 20% to Africa’s economic development over the last decade.
Africa has long struggled with inadequate infrastructure, which has impeded its growth and development. China’s development experience, particularly in infrastructure development, could help Africa become more integrated, prosperous, and peaceful. As of 2021, China had invested over $150 billion in infrastructure projects in Africa, making it the continent’s largest infrastructure partner.
African countries face significant funding gaps in infrastructure development, with estimates suggesting that the continent needs up to $170 billion annually to meet its infrastructure needs. China’s approach to infrastructure financing, which emphasizes concessional loans, grants, and infrastructure investment funds, could help African countries mobilize the required resources for infrastructure development. China could also share its experience in public-private partnerships (PPPs) in infrastructure financing, which have been used extensively in China to leverage private sector resources for infrastructure development.
China’s development experience in regional integration could help Africa overcome its fragmentation and achieve greater economic integration. African countries could learn from China’s experience in regional integration and apply it to the AfCFTA.
Heads of African Union member states have called for more commitment and accountability in Africa’s effort to achieve continental and global goals for nutrition ahead of the 2025 World Health Assembly Nutrition target deadline. The leaders took part in a nutrition-themed side event during the 36th Ordinary Session of the Assembly of the African Union
The event was held on Friday 17 February, under the chairmanship of Prime Minister of the Kingdom of Lesotho Samuel Ntsokoane Matekane. Its theme: “Progress and Achievements in Addressing Malnutrition in Africa: Accountability for results in achieving continental and global targets for nutrition,” centered on long-lasting measures to curb malnutrition and food security on the continent.
African Union: future role in BRICS+ and G20 (Modern Diplomacy)
On January 23, 2022, Maria Zakharova, spokeswoman of the Russian Foreign Ministry, announced Foreign Minister Sergey Lavrov was embarking on a new tour of Africa. During the week, the high-ranking Russian delegation paid a visit to several countries on the continent: South Africa being the traditional “mainstay” of Russia’s foreign policy in Africa, the continent’s smallest kingdom of Eswatini, the Russia-friendly Portuguese-speaking Angola, and the little-known Eritrea, which was once even under Russian sanctions. That said, Moscow did not hesitate to announce the terminal point of the visit, the specifics of the secretive Eritrean statehood probably playing a part here.
Amid preparations for the second Russia–Africa Summit and Economic Forum, which is anticipated in St. Petersburg in July 2023 after repeated postponements, Moscow needs to not only embrace a constructive agenda for the discussions but also ensure a high representativeness of their participants—all that in a more challenging geopolitical situation than it was in 2019.
Fight against illicit financial flows (IMF)
Illicit financial flows refer to the movement of money across borders that is illegal in its source (e.g. corruption, smuggling), its transfer (e.g. tax evasion), or its use (e.g. terrorist financing).
Illicit and tax avoidance related financial flows (ITAFF) can have a significant impact on the economic stability of a country and the global financial system. They can drain foreign exchange reserves, distort competition, inflate prices for real estate and other assets, lower tax receipts, and reduce government revenue. They divert resources from public spending and can cut into the capital available for private investment. Illegal flows also can encourage further criminal activity, undermine the rule of law, erode trust in public institutions, and threaten a country’s political stability. In addition, ITAFF can have a negative impact on the broader economy, with potential spillovers into other economies, including by deepening inequality and weakening social cohesion across and within countries.
What is being done to combat ITAFF? For decades, the IMF has played a key role in international efforts to combat these opaque and often destabilizing transfers. It also has longstanding concerns with flows that are not strictly illegal but are associated with tax avoidance.
Policy priorities for the G20: One earth, one family, one future (IMF)
At a time of heightened uncertainties for the global economy, India’s strong performance remains a bright spot. So, it’s fitting that Group of Twenty finance ministers and central bank governors will gather in Bengaluru this week.
This will be another challenging year. But it could represent a turning point—with inflation declining and growth bottoming out. Indeed, while our latest projections show global growth slowing to 2.9 percent this year, we anticipate a modest rebound to 3.1 percent in 2024.
One year into Russia’s war, a key global food security deal hangs in the balance (POLITICO)
“The grain deal is absolutely critical for the response to the food crisis,” said WFP economist Friederike Greb. There was already a “toxic mix” of factors — from climate change to debt — driving hunger before the war. The world cannot now afford another spike in food prices, she told POLITICO, making it vital to extend the deal.
Russia claims that most Ukrainian cargoes have headed to Europe and other rich countries; not to those in Africa and Asia bearing the brunt of the global food crisis.
With the deal up for renewal March 19, rhetoric is escalating on both sides — as Ukraine seeks greater access to world markets and Russia pushes back against Western sanctions that it says are to blame for rising food insecurity.
Trade thoughts, from Geneva, by DDG Anabel González (WTO)
Policymakers and businesses are increasingly wary about the risks of economic interdependence. Securing supply chains, avoiding over-dependence on too few (or “unfriendly”) suppliers, and ensuring continued access to goods in critical sectors have become top-of-mind, as have strategies to accelerate the transition to net zero carbon emissions.
In this increasingly complex landscape, the world needs a system to tackle challenges of the global commons, diffuse trade conflicts, and tap into new growth opportunities. Only a revitalized World Trade Organization (WTO) can serve this purpose. Contrary to misguided views of the WTO as an irrelevant outfit or a strait jacket that obstructs the pursuit of legitimate national goals, the WTO matters. Now, more than ever.
Of course, reforming the WTO will not be easy, but it can be done. The global trading system has confronted challenges before, and governments have found ways to reinvent it. We owe this in no small measure to the trading system’s flexibility.
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Parliament passes Agricultural Amendment Bill (SAnews)
The National Assembly (NA) has passed the Agricultural Product Standards Amendment Bill and the National Veld and Forest Fire Amendment Bill during its hybrid plenary on Tuesday.
The Agricultural Product Standards Amendment Bill seeks to amend the Agricultural Product Standards Act, 1990; to provide for the auditing of a product for management control systems; to make provision for the setting of tariffs by assignees on a cost-recovery basis, and to make further provisions for the Minister to make regulations pertaining to audit and management control systems.
Ghana and Gambia plan to build tech-based economies (Quartz)
As legacy economies continue to fall out of favor the world over, Ghana and Gambia are ramping up efforts to build tech-based economies. In a time when most economies run by oil, manufacturing, and agriculture are shifting to digital economies, the two countries with a combined population of 35 million don’t want to be sidelined.
Now, they have joined Nigeria, Rwanda, Morocco, and Djibouti as members of the Digital Cooperation Organization (DCO) that aims to link Africa and Gulf countries in the realization of a common digital economy agenda. Other members are Bahrain, Jordan, Kuwait, Oman, Saudi Arabia, Cyprus, and Pakistan. They collectively represent nearly $2 trillion in GDP and a market of nearly 600 million people.
Africa faces funding shortfalls in tech infrastructure, challenges in implementing data protection policies, and slow adoption of frontier tech skills, but hopes that partnerships supporting its digital economy agenda could unlock financing.
Uganda wants stern laws against East Africa trade barriers (The Citizen)
Uganda wants stern laws enacted against barriers inhibiting trade in the East African Community (EAC) region. The member of the seven-nation bloc wants the East African Legislative Assembly (Eala) to spearhead the exercise.
“I urge Eala to pass laws that would drastically reduce tariff and non-tariff barriers,” said Thomas Tayebwa, the deputy Speaker of the Uganda Parliament.
He said during the visit to the National Assembly in Kampala by Eala Speaker Mr Joseph Ntakirutimana that such barriers have significantly impacted on trade.
Mr Tayebwa also called on Eala to come up with a resolution that would compel the council to impress upon their respective partner states to comply with the Summit directives.
New Commonwealth’s Nairobi office to boost Kenyan exports (Business Daily)
Commonwealth’s official business networking organisation will on Wednesday open an office in Nairobi to support East African businesses seeking export markets for their goods and services. The Commonwealth Enterprise and Investment Council (CWEIC) chairperson Lord Jonathan Peter Marland says the office will be used as a hub to grow trade and investments by offering opportunities such as business networking and legal advice for firms eyeing cross-border deals.
“We are opening our office here (Nairobi) this Wednesday as part of our territorial outreach so that we can help businesses achieve international connectivity,” said Mr Marland.
Nairobi becomes the fourth hub for CWEIC in the African continent after Accra (Ghana), Lagos (Nigeria) and Douala (Cameroon). CWEIC has been keen on supporting opportunities in areas such as food security, climate change and technology. Mr Marland said part of the specific focus in Kenya will be on supporting agri-tech to improve food security.
Mauritius has made significant strides in bolstering its public procurement system, but there is room for improvement in electronic procurement and capacity-building for practitioners.
These are among the findings of an assessment report the African Development Bank launched virtually on 15 February from Port Louis, the capital. The bank undertook the study in partnership with the Mauritius government using the MAPS framework, a universal standard for evaluating public procurement systems.
The report also provides recommendations for the government’s next steps in implementing the reforms.
Strengthening governance, investing in human capital with a focus on education, and improving the business climate are key pillars for Guinea-Bissau to break out of the fragility cycle towards sustainable and inclusive growth and make progress on gender equality. These are the main recommendations of the Economic Update and the Country Economic Memorandum, two new reports launched by the World Bank in Guinea-Bissau.
“The COVID-19 pandemic and the impact of Russia’s invasion of Ukraine have revealed the vulnerabilities of the country’s economy to external shocks. It is important that Guinea-Bissau implement structural reforms over the medium term to support economic recovery and improve human capital and gender equality indicators, strengthening the country’s resilience”, said Anne-Lucie Lefebvre, World Bank Resident Representative in Guinea-Bissau.
The reports present a comprehensive overview of the country’s economic sector and its constraints and offer recommendations for the post-COVID-19 development, focusing on policies that can stimulate a rapid recovery and support sustainable and inclusive growth.
SACU chair announces the finalisation of the SACU Tariff Offer to AfCFTA (Namibia Economist)
The current Chair of the Southern Africa Customs Union (SACU), Cleopas Sipho Dlamini officially announced the finalisation of the SACU Tariff Offer on 18 February during the 36th Ordinary Session of the AU Assembly that was held in Addis Ababa, Ethiopia.
Dlamini in a statement reiterated SACU’s commitment to Africa’s integration and specifically the implementation of the African Continental Free Trade Area (AfCFTA). The submission of the Tariff Schedule speaks to that commitment with the view to ensuring that the SACU business community leverage on the benefits of the AfCFTA.
According to the statement, SACU submitted an initial Tariff Offer in November 2020, in preparation for the commencement of trading in January 2021 which needed further work to comply with the agreed modalities.
Subsequently, the region worked tirelessly to meet the threshold of 90%t products to be liberalized. This process has now been completed as noted by the 11th Meeting of AfCFTA Council of Ministers responsible for Trade and Industry held from 11-12 February 2023, in Gaborone, Botswana.
The statement further said that the Tariff Offer of 7111 tariff lines, which represents 90% of the SACU Tariff, Book in line with the Agreed Modalities for Tariff Liberalisation, was submitted to the AfCFTA Secretariat on 13 February 2023 for verifications
EAC-Comesa-SADC tripartite trade deal in place by April, Ruto says (The Star)
The EAC-Comesa-SADC tripartite agreement will be in place by the end of April 2023, President William Ruto has said. This means 28 African countries will trade as a bloc with the European Union.
Pitching Kenya as the preferred investment hub for EU investors on Tuesday, President Ruto said Nairobi is a strong participant in the Tripartite Trade Agreement encompassing EAC, Comesa and SADC. “The tripartite agreement was signed in 2015 and unfortunately for the seven years or so, we have not concluded it to the satisfaction of the EU requirements,” the President said in Nairobi during the EU-Kenya Business Forum.
“He [Moses Kuria] has been to Egypt, Angola, Comoros [new AU chair], Uganda, Tanzania, Lesotho South Africa …, and now I can promise with confidence, by the end of April, we will have the tripartite agreement in place,” Ruto said.
Capacity Building for the Implementation of the Tripartite Free Trade Area get Underway (COMESA)
Capacity building of stakeholders who will play a key role in the implementation of the Tripartite Free Trade Area (TFTA) has begun. The initial focus is on the Rules of Origin, which represent the most important cross-border trade instrument in economic integration agenda.
The first regional Training of Trainers session on the TFTA Rules of Origin was hosted in Nairobi, Kenya on 17 – 18 February 2023. It targeted the business community, revenue authorities’ customs services departments, government ministries and agencies and organizations that support trade to enhance their skills and knowledge on TFTA Rules of Origin. This will improve their operational performance and support the uniform application of TFTA Rules of Origin to enhance regional cooperation and intra-Tripartite trade.
The United Nations Conference on Trade and Development (UNCTAD) describes Rules of Origin as the “Passport for circulating goods under preferential tariffs”. Non-preferential Rules of Origin are applied to determine the country of origin for purposes other than granting preferential tariff treatment. They can support production and trade of goods made in the Tripartite region, boost intra-regional trade across existing regional economic communities and therefore enhance structural transformation.
Analysis: Southern Africa calls the tune as great power suitors queue up (Reuters)
South Africa and its neighbours were at the centre of a tussle for influence this week when top Russian and U.S. officials visited, offering a rare moment of leverage for governments on a continent more used to being buffeted by events than wooed.
For the countries of southern Africa, which maintain strong ideological and historical sympathies for Russia but hold far more significant trade balances with the European Union and United States, that rivalry presents an opportunity.
“They have the opportunity to play one side off against the other to get concessions; to get more aid, more trade,” said Steven Gruzd from the South African Institute of International Affairs. “That’s precisely what we’re seeing at the moment.”
The Ministry of Industry and Commerce and the United Nations Economic Commission for Africa (UNECA) Sub-Regional Office for Southern Africa (SRO-SA) will hold a meeting to validate the Report on the Development of Local Content Thresholds for the Fertiliser, Packaging, and Pharmaceutical Sub-Sectors at Holiday Inn in Harare on 24 February 2023.
In support of industrialization and industrial growth, the Ministry of Industry and Commerce is developing local content thresholds (LCTs) across all economic sectors, in accordance with the Zimbabwe National Industrial Development Policy (ZNIDP) (2019-2023). The establishment of these thresholds will boost investment, value chain development, value addition, and beneficiation in line with the National Development Strategy (NDS) 1 (2021-2025). Emphasis will be on the procurement of local products and inputs based on specific metrics to support industrial development and intensify economic sector linkages.
The findings of the study aim to align the Local Content Thresholds with the overall thrust of NDS1 and other frameworks supporting industrialization and local content in Zimbabwe. The proposed framework for the implementation of the thresholds will be interrogated for practicality, reasonableness, and sustainability. This will help to address any gaps and/or misrepresentations in the study and provide a template that can guide implementation of local content strategies in the three sectors.
CSOs in Accra for AfCFTA conference (Graphic Online)
A three-day consultative seminar on the Africa Continental Free Trade Area (AfCFTA) among civil society organisations (CSOs) from across Africa is underway in Accra. The seminar, sponsored by the Africa Trade Network, aims to share perspectives on AfCFTA, exchange detailed information on the processes, and form an agenda for future interactions among CSOs regarding the trade pact and broader trade development advocacy in Africa.
Topics slated for discussion include Africa in the context of global economic and political challenges, broad overview of Africa’s economic structure and its dynamics, interrogating the thematic issues confronting Africa today, domestic resources mobilisation, taxation and financial flows in Africa.
The Africa Trade Network has indicated that the implementation of the concluded protocols on Trade in Goods and on Trade in Services under the AfCFTA have been challenged by the need to create rules to operationalise those protocols. Final agreement on Trade in Goods remains to be reached in areas such as rules of origin and final tariff schedules.
Aviation investment key for the success of Africa’s free trade agreement (Air Cargo News)
The development of aviation policy should be a priority for African countries if they are to capitalise on the benefits of a continent-wide trade agreement.
Panellists at the Air Cargo Africa event agreed that the African Continental Free Trade Agreement (AfCFTA) stood to benefit the continent and air cargo.
However, they said it was essential that air cargo policy at a country level is enhanced to ease the movement of goods between countries.
Kenya Airways chief executive Allan Kilavuka said: “The AfCFTA is fantastic but it will not work if we don’t grow the air traffic and the aviation business in Africa.
“If the policy formulation is not in tandem with the intention of the free trade agreement it will not work.
Fast-growing African fuel markets spur gas-station deal making (Engineering News)
The rapid expansion of Africa’s fuel demand is driving deal-making activity in the continent’s retail business, as trading houses to oil majors chase the growth that’s lacking in their home markets.
“There is a new wave of consolidation of assets as existing players are either rationalizing (Puma) or expanding (Vivo) their networks, or both (TotalEnergies),” Elitsa Georgieva, executive director at Citac, a consultant that specializes in African refining, wrote in response to questions from Bloomberg. “Meanwhile, there is an increasing number of African energy companies that are expanding rapidly.”
Africa’s oil consumption is forecast by the US Energy Information Administration to significantly outpace Europe and North America in the coming years. Demand for petroleum products is set to increase over 6% annually in some parts of continent in 2023, according to Citac. That’s a faster pace than the decade to 2021, when total oil consumption rose 1.4% a year on the continent, outstripping the US and Middle East, and compared with a contraction in Europe, according to BP’s Statistical Review of World Energy.
Jill Biden heads to Namibia, Kenya; part of US-Africa push (AP News)
Jill Biden headed for Africa on Tuesday, first stop Namibia, declaring as she departed Washington that she had “a lot to accomplish” during a five-day visit focused on empowering women and young people and addressing food insecurity.
Through renewed engagement with the countries of Africa, the U.S. aims to catch up with its economic rival, China, which has outpaced the U.S. in terms of trade in some of the 54 nations on the continent, the second most-populous.Trade between the U.S. and sub-Saharan Africa totaled $44.9 billion in 2021, a 22% increase from 2019. But direct investment fell by 5.3% to $30.3 billion. Trade between Africa and China in 2021 surged to $254 billion, up about 35% as Chinese exports increased to the continent.
African Union-China relations enter crucial stage (The Citizen)
On February 18 and 19, 2023, African leaders gathered in Addis Ababa for the 36th Ordinary Session of the Assembly of the Heads of State.
On the opening day of the Summit, Chinese President Xi Jinping sent a congratulatory message to the 36th AU Summit, commending the regional body for uniting and leading African countries to stand up to global challenges, accelerating the development of the African Continental Free Trade Area, and playing an important role in mediating hot issues in Africa, which according to Xi has boosted Africa’s international status and influence. Xi pledged that he stands ready to work with leaders of African countries to build a high-level China-Africa community with a shared future.
At the 20th National Congress of the Communist Party of China (CPC) in October 2022, the Chinese path to modernisation was put forward in five points: modernisation of a big population, modernisation for common prosperity, modernisation of material and cultural-ethical advancement, modernisation of harmony between humanity and nature, and modernisation of peaceful development. These aspirations are centred around the idea of the rejuvenation of the Chinese nation.
$400mln to be unlocked by EIB and TDB to support African companies impacted by trade shocks (ZAWYA)
Investment by business across Africa most impacted by trade and supply chain challenges will be supported by a new targeted financing initiative backed by the European Investment Bank (EIB) and the Eastern and Southern African Trade and Development Bank (TDB).
EIB, through its new dedicated development finance arm EIB Global, today formally agreed to provide a trade finance facility of USD 200 million to TDB to this effect. This amount is expected to support USD 400 million in new private sector investment, including by companies from across all sectors including agri-food and manufacturing which have been impacted by the disruption of trade flows following the Russo-Ukrainian crisis and COVID-19 pandemic.
DDG Paugam: A mix of trade policy approaches is needed to achieve sustainability goals (WTO)
My key message today is that the APEC and the WTO models of trade cooperation have been converging much more than initially expected over the last 30 years; and I also think that the topic of sustainable development holds a great potential for more convergence in the future.
This is why it is my privilege to address your working group. I have no doubt that what you are doing here is very relevant to the WTO There are four reasons why I believe this to be true.
WTO members explore ways of boosting LDCs’ participation in global supply chains (WTO)
It takes on average 30 to 40 days and nine different document requirements to clear imports and exports in LDCs, speakers noted. To boost LDCs’ participation in global supply chains, they underlined the importance of trade facilitation measures, digitalization of import and export transactions and greater transparency of trade laws and regulations. Participants suggested providing training to both importers and exporters to raise awareness of customs processes so that LDCs can make better use of existing preferential market access schemes.
LDC business representatives noted that the competitiveness of LDCs’ firms could be strengthened by actively participating in the multilateral trading system and deepening regional integration.
WCO organizes first forum on E-Commerce and Customs Valuation (WCO)
On 15 February 2023, the World Customs Organization (WCO) held the first symposium on E‑Commerce and Customs Valuation. During the hybrid event, international organizations, Customs administration, and the private sector discussed the challenges in calculating Customs Value for E‑Commerce.
In his opening speech, Dr. Kunio Mikuriya, the Secretary General of the WCO, recognized the that “E-Commerce brings enormous opportunities for economic and social development by fostering innovation, introducing new trade models, creating job opportunities and leading new consumer trends”. He also underlined the challenges associated with E-Commerce and called for a concerted effort on the part of the Customs community and their partners for tangible solutions to those challenges.
In her address, Ms. Suja Rishikesh Mavrodis, Director of the Market Access Division at the World Trade Organization (WTO), highlighted various initiatives related to E-Commerce, including potential ways to enhance cross-fertilization and learning through the trade facilitation and valuation committees, in conjunction with the WCO.
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Agriculture growth projects stalled by load shedding crisis (IOL)
Further deterioration in the electricity crisis has been a major cause of delay in the implementation of agricultural programmes intended to grow the sector, according to the Agricultural Business Chamber’s Chief Economist Wandile Sihlobo.
Sihlobo said there was so much in the implementation pipeline of South Africa’s agriculture policy this year, after the past four years had largely seen through various initiatives that sought to inject confidence in the sector. These were now ripe for implementation, ahead of the 2024 elections.
“A major development in recent times was the launch of the Agriculture and Agro-processing Masterplan, which offers the government and the private sector a new possibility to grow the sector, build competitiveness, attract more investment, and ensure inclusion,” he said.
Loadshedding weighing heavily on economic outlook, but climate resilience efforts offer opportunities (Engineering News)
South Africa’s economy has performed surprisingly well lately, with gross domestic product trending at pre-pandemic levels; however, global and domestic challenges, especially energy impacts, are expected to play a considerable role in the outlook moving forward.
This was noted by Nedbank Group Economic Unit specialised economist Liandra da Silva during Nedbank Commercial Banking’s roundtable discussion on “Navigating the financial terrain ahead of a tough 2023”, held on February 20.
Da Silva pointed out that the domestic economy had proven resilient despite the many shocks experienced in 2022, and with the country still recovering from the pandemic impacts.
One Year Later: The impact of the Russian conflict with Ukraine on Africa (Africa Renewal)
The global energy crisis also created policy reversals, with many countries now pursuing natural gas and other fossil fuel projects to meet their energy needs. Natural gas is also getting more traction as a “green investment”, a pivot from the pledges made at the COP26 global climate talks in Glasgow in November 2021 to curtail development financing for natural gas projects. For African countries, this has meant a renewed interest in and fast-tracking of natural gas and liquified natural gas (LNG) projects, but mainly for export to Europe and others outside the continent.
While this may spell more investments in the energy sector on the continent, the benefit may not necessarily result in energy access for Africans themselves. Instead, this risks further perpetuating commodities-based economies, stunting the continent’s own industrialization ambitions.
EAC partner states on the spot over irregular excise tax (The East African)
Kenya, Uganda, Rwanda and Tanzania may be denying smaller EAC economies a chance at regional trade by levying irregular excise duty. A study on discriminative taxes in the East African Community shows that Burundi and South Sudan, whose economies are smaller than the other four EAC counterparts, have been unable to make good sales in the region due to the irregular excise. In East Africa, excise duty is imposed on goods manufactured in a partner state by a licensed manufacturer; services supplied in the partner state by a licensed person; or goods imported into the partner states.
Excisable commodities include bottled water, soft drinks, cigarettes, alcohol, fuels and motor vehicles.
Trade CS Moses Kuria joins Cryptocurrency debate (Nairobi News)
Trade Cabinet Secretary Moses Kuria has asked Kenyans to be at the forefront of changes happening across the world due to innovation. Speaking at the launch of the Showfa taxi platform, the CS said Kenya will not be harmed by legalizing the digital currency. He has asked the Central Bank of Kenya (CBK), and the Communication Authority of Kenya (CA) to lower their guards on Cryptocurrency.
According to the CS, Kenya has the potential of dominating the international market with its innovation in fintech and technology. “It is beyond us now the current generation who have got this responsibility bestowed upon us that comes only once in a lifetime, once in history, not to be conservative. To look at things differently.”
Seychelles is living the consequences of climate impact daily, says Vice-President at AU Summit (Seychelles News Agency)
Afif gave a brief report on the activities undertaken in 2022 to promote the Africa Island States’ action for climate-resilient sustainable development.
Seychelles’ Vice-President Ahmed Afif congratulated the COP27 presidency for leading the historic decision to establish a new loss and damage response fund in Egypt, State House said on Sunday.
The ground-breaking decision to provide loss and damage funding for vulnerable countries hit hard by climate disasters was taken at the United Nations climate conference (COP27) in Sharm El Sheikh, Egypt in November 2022.
“Seychelles like the rest of the African continent, is living the consequences of climate impact daily and this, coupled with the increasing number of climate disasters, makes it obvious that the era of loss and damage is upon us,” said Afif.
EAC ministers meet, report on Somali admission to be considered (The Star)
Somali is inching closer to being admitted to the East African Community (EAC) as an eighth member. Its admission will, however, depend on a resolution by the Council of the ministers’ summit which is currently underway in Bujumbura, Burundi. The ministers are converging for their 43rd ordinary session.
The report from the verification team that visited Somalia last month will be tabled for consideration Thursday before it is presented to the summit of Heads of state summit for endorsement.
Somalia has been pushing for inclusion into the EAC following the admission of the Democratic Republic of Congo last year. Somalia made its application to join the EAC in 2012 but since then its application has been pending due to various reasons.
Ruto urges EU to conclude economic partnership deal with EAC (The Star)
President William Ruto has urged the European Union to fasten the process of concluding its economic partnership agreement with the East African Community. Speaking on Tuesday during the Kenya-European Union Business Council forum, Ruto said access to the EU market will enable Kenya to expand its export base and also create employment opportunities. “It is one of the notable interventions that can make a tremendous difference to our economic performance and there is an excellent reason, in the EU’s best interests, to conclude the deals,” he said.
The people of Africa and the Caribbean are poised to make the global capitalist economy, which was built on the sweat and blood of African slaves, work for them, Prof. Benedict Oramah, President of the African Export-Import Bank (Afreximbank), said. Addressing leaders of Caribbean nations during the 44th Meeting of the Heads of Government of the Caribbean Community (CARICOM) in Nassau, The Bahamas, Prof. Oramah lamented that “for so many decades, the global capitalist economy, built on the sweat and blood of African slaves, has remained an unbearable burden on the shoulders of Africans; we are now poised to make it work for us.
He described the first-ever Afri-Caribbean Trade and Investment Forum (ACTIF), co-hosted by Afreximbank, the African Union Commission, the Caricom Secretariat, and the Government of Barbados in September, as a watershed in the journey towards Afro-Caribbean economic cooperation, noting that it witnessed the opening for signature of the Partnership Agreement between Afreximbank and CARICOM States.
“Since then, nine CARICOM member states have signed the Agreement, which has now come into force,” he said. Through that Agreement, which is similar to the Agreement for the Establishment of Afreximbank, signed by African States, Afreximbank was providing to Africa and the CARICOM “a financially-resourced platform for a credible pursuit of our collective aspirations to exploit our markets for our own good and in our own way”.
SMEs need energy solution, transport infrastructure and industry development (Engineering News)
Arguably, the most immediate concern for South Africa’s SME sector is the impact of the worsening energy crisis, says small business financier Business Partners chief investment officer Jeremy Lang.
Rescuing the small and medium-sized enterprises (SMEs) sector requires fundamental and large-scale interventions aimed at addressing their specific problems, including the energy crisis, the need for transport infrastructure and the need for supportive policy.
“Bringing SMEs into the supply chain for alternative, renewable sources of energy that will relieve pressure on the grid is one way in which government can boost the sector. Involving small businesses in the process of building an energy secure nation will also be a step in the right direction,” says Lang.
G20 watchdog says commodity market concentration poses threat to wider economy (Engineering News)
The pandemic and war in Ukraine highlighted weaknesses in commodity markets where a ‘significant’ concentration of firms, banks, exchanges and clearing houses threatens to transmit losses to the wider economy, the G20’s financial watchdog said on Monday.
The Financial Stability Board’s (FSB) deep dive into commodity markets came after regulators voiced concern that they were unable to get a full picture of a sprawling sector comprising on and off exchange derivatives trading, physical stocks, patchy data and producers spread across the world.
European natural gas and metals prices doubled while oil and wheat gained sharply after Russia’s invasion of Ukraine, causing a spike in cash or margin calls on related derivatives.
Africa cargo market huge but remains untapped: Study (Africa Aviation News)
The Africa air cargo market is estimated at 2-2.5 percent share of the global market but that belies its enormous-yet-seemingly-elusive promise, says the latest study Africa Cargo Outlook 2023 by Trade and Transport Group, promoted by Tom Crabtree and Frederic Horst.
“During the Covid-19 pandemic, the air transport capacity – particularly freighter aircraft – was re-oriented towards developed world markets in East Asia, Europe and North America, usually at the expense of developing world markets. Africa was hit particularly hard. While African passenger connections are being restored, freighter capacity has yet to return to pre-Covid levels.”
Economy is another concern: while economic growth remains concentrated in a few African countries, “the overall economic outlook for the continent is one of accelerating growth in 2023 (3.8 percent) and 2024 (4.1 percent) with some mid-size African countries offering interesting growth opportunities.”
Opec’s quiet offensive in Africa (The Africa Report)
Last December, the OPEC Fund approved $280m in loans to the continent – from Côte d’Ivoire ($75m) to Benin ($14m). In early February, a $50m contribution to the Africa Finance Corporation (AFC), the institution dedicated to supporting infrastructure on the continent, was announced. A first and previous loan of the same amount was approved in early 2021.
The continent has a de facto particularly high share in the OPEC Fund’s resource allocations. “Exposure to African countries stood at $2.86bn in September 2022, compared to $2.56bn (an increase of $300m) in December 2021,” the Vienna-based multilateral institution, which also hosts OPEC, told
UN ‘blueprint’ to protect least developed nations amid global slowdown (UN News)
The Doha Programme of Action, as it’s formally known, has been designed as a roadmap up to 2031, to foster strengthened commitments between the least developed countries and their development partners.
“The world is reeling under the cascading impacts of complex, interlocking challenges and structural limitations and constrained fiscal capabilities make least developed countries the ones first and often most severely impacted,” said Csaba Kőrösi at the opening of the General Assembly and Economic and Social Council (ECOSOC) high-level event on the plan being an accelerator of implementing the 2030 Agenda for Sustainable Development.
UNDP at LDC5 Conference: From Potential to Prosperity (United Nations Development Programme)
The Least Developed Countries (LDCs) need bold investments in health, education and social protection systems— and all the resources required to fully implement the 2030 Agenda and the Sustainable Development Goals (SDGs). There are currently 46 countries recognized as part of the LDC group – 33 in Africa, 12 in Asia and the Pacific, and one in the Caribbean region – some are islands and others are landlocked. Collectively they constitute around 880 million people, or 12 percent of the world population. Eight are Small Island Developing States (SIDS).
The fifth United Nations Conference on the LDCs comes at a critical moment as the timeline to achieving the SDGs by 2030 hits the mid-point mark this year. Taking take place in Doha, Qatar, from 5-9 March 2023 under the theme - “From Potential to Prosperity”, the conference will be attended by Heads of States, governments, civil society organizations, youth, parliamentarians, and the international community.
The objective of the Conference is to build momentum around the implementation of the Doha Programme Of Action (DPoA), which is an ambitious and forward-looking agenda.
After defeating COVID, China sheds light for global development (Capital News)
There is a breath of fresh air flowing from China after the country’s Communist Party’s Politburo Standing Committee recently stated that it had “decisively beaten” the COVID-19 pandemic. It was a bold statement to make, similar to the one made by President Xi Jinping in December 2020 that China had eradicated extreme poverty.
Data shows that more than 200 million of its citizens have been diagnosed and treated for COVID-19 since it lifted strict containment measures beginning in November. In addition, 800,000 of the most critically ill patients recovered.
Even as China now transits to a post-pandemic stage after a long and successful fight against the pandemic which Xinhua termed as “extraordinary in the extreme,” the government has promised to “optimize and adjust prevention and control policies and measures according to the times and situations with a strong historical responsibility and strong strategic determination.”
Natural gas price action setup: is the slide overdone? (IG)
Natural gas prices hit a fresh multi-month low on Monday; on some measures, the six-month slide is beginning to look stretched and what is the outlook and what are the signposts to watch?