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Tanzania: Coffee to Trade Under AfCFTA Market From July (All Africa)
COFFEE will be the first Tanzania's product to trade under the African Continental Free Trade Area (AfCFTA) market in July this year, the Minister for Investment, Industry and Trade, Dr Ashatu Kijaji has said.
Recently, the government announced that from July 1st, this year, it will start exporting ten types of products to the AfCFTA market for the country to benefit from an integrated African market of over 1.3 billion people.
"We already have the first product that we will export first and that is coffee and we will not send it in raw form, we will send the finished product," said the Minister in Dar es Salaam yesterday when she was speaking to members of the Confederation of Tanzania Industries (CTI) at the meeting that was also attended by the Minister for Finance and Planning, Dr Mwigulu Nchemba.
SA plans to raise R2 trillion by 2028 through intra-Africa trade (SAnews)
South Africa’s diplomatic missions across the globe stand ready to mobilise R2 trillion by 2028, with a particular focus on increasing intra-Africa trade, which stands at 17% of total trade.
This is according to the Deputy Minister of International Relations and Cooperation, Alvin Botes, who participated in the debate on President Cyril Ramaphosa's State of the Nation Address (SONA) on Tuesday.
“Mr President, because of your leadership, in 2021, we exported more to Africa -- R385 billion -- than to the European Union's R355 billion.”
Cemac: Prices of exported commodities fell by 13.4% in Q4 2022 (Business in Cameroon)
The prices of commodities exported by Cemac countries fell 13.4% in Q4 2022, after rising 6.9% and 0.5% respectively in the second and third quarters.
The situation is the result of “the sharp decline in the global prices of oil and natural gas" during the period, Beac points out in its Composite Commodity Price Index (ICCPB). In detail, the quarterly document says, global prices for energy products fell by 18.8%, after a rise of 2.9% in Q3. In Q4, gas fell by 35.5% and a barrel of oil by 11.6%.
According to Beac, this price contraction is related to the increase in European natural gas stocks, supported by the reduction in gas consumption by households and industries, which are turning to renewable energies; the slowdown in global growth; concerns about a global recession; and the maintenance of pandemic restrictions in China.
Madagascar launches safeguard investigation on concentrated milk (World Trade Organization)
On 14 February 2023, Madagascar notified the WTO’s Committee on Safeguards that it initiated on 11 February 2023 a safeguard investigation on concentrated milk and that it imposed a provisional measure.
In the notification Madagascar indicated, among other things, as follows (provisional English translation):
"Interested parties should make themselves known to the ANMCC, the authority in charge of the investigation, within 30 days from the date of the initiation of the investigation.
Nigeria not ready for AfCFTA, can’t facilitate trade, says Amiwero (Guardian Nigeria)
Former member of the Presidential Committee on Destination Inspection and Ministerial Committee on Fiscal Policy and Import Clearance Procedure, Lucky Amiwero, has lamented Nigeria’s shoddy approach for the African Continental Free Trade Area (AfCFTA), as it lacks key tools of international process of trade facilitation.
He said the components that make up an efficient port, which are also tools for trade facilitation, such as consistency; transparency and predictability are missing in the country’s maritime sector.
Amiwero said time of clearing containers cannot be predicted as well as with the berthing of ships, which he said, is not consistent and transparent. He also pointed out multiple agencies and many charges at the ports, adding that after the 2006 reform, the port has been bedeviled by a lot of exploitative tendencies from every agency in the port.
Presentation of Africa’s Macroeconomic Performance and Outlook (AfDB)
The African Development Bank and the African Union Commission will host a joint event to present the inaugural Africa’s Macroeconomic Performance and Outlook report at the 36th African Union Summit in Addis Ababa, Ethiopia.
The report, published by the African Development Bank Group, offers policymakers, global investors, researchers, and other development partners, up-to-date, evidence-based assessments of the continent’s recent macroeconomic performance.
When: Friday, 17 February 2023. 8:00 AM EAT (GMT+3)
Where: African Union Commission, Medium Conference Hall, and online
Logistics operators see opportunities in AfCFTA despite slow takeoff (Guardian Nigeria)
Notwithstanding the slow pace of implementation of the African Continental Free Trade Agreement (AfCTA), logistics executives have expressed optimism about the benefits inherent in the trade deal.
Indeed, three major issues are believed to be affecting the AfCFTA in its initial phase. First, the negotiation on the Rules of Origin seems endless. Several members were unwilling to ratify all the articles of agreement. Many African countries earn most of their trade revenue from exports to non-African countries.
In 2022, rules of origin were resolved for 87.7 per cent of the goods covered by AfCFTA, including about 3,800 tariff lines. Secondly, the AfCFTA suffers as does the African Union (AU) in general, from a lack of popular perception about its advantages across the board. African businesses in particular are not fully aware about the advantages of the AfCFTA.
China-Africa Digital Trade Services Hub In Hunan (Maritime Gateway)
China’s Hunan province has unveiled a China-Africa Digital Services Hub that focuses on cross-border communications support and data-sharing between Chinese companies working in Africa.
The China-Africa economic and trade digitalization service based in Changsha, the provincial capital, aims to support Chinese companies’ trade with Africa. China’s central Hunan province has been among the most ambitious in launching new services and facilities to promote trade with African countries. The base mainly serves Chinese companies in Africa and provides related digital information services. It will also promote the innovative application of new business forms such as cross-border e-commerce, China-Africa economic and trade data statistical analysis, and other digital products related to telecommunications, Internet, software and information technology services. The base can provide campsite communication support equipment services for enterprises in need and build cross-border interconnection routes for African branches of Chinese-funded enterprises.
DDG González: “WTO reform is about promoting resilient, sustainable and inclusive trade” (World Trade Organization)
WTO members must do more to safeguard and expand the role of trade as a tool to create jobs, reduce poverty and increase economic opportunity, WTO Deputy Director-General Anabel González said at a conference hosted by the World Bank and the Peterson Institute for International Economics on 14 February. She called on WTO members to accelerate the pace of work on WTO reform to match the size of the challenges facing the global trading system.
“WTO reform is urgently needed to prevent that power replaces rules in global trade relations,” DDG González said, adding that “the cost of the resulting economic fragmentation would be massive, possibly 5% or more of long-term world GDP if the world economy were to split into two self-contained blocs”.
DDG González said that economic resilience calls for diversification, not decoupling. “We need better transparency and monitoring to map concentrated trade relationships, we need greater policy dialogue to chart coordinated solutions, and we need to continue opening and facilitating trade to bring alternative supply sources into the global economy,” she said.
China’s South America free-trade deal to have ‘clear impact’, but may irk US by seeking opportunities in its ‘backyard’ (South China Morning Post)
A proposed free-trade agreement between China and a group of South American nations, which includes Argentina and Brazil, will benefit all sides economically, but will further increase competition between Washington and Beijing in the so-called backyard of the United States, according to analysts.
New leftist Brazilian President Luiz Inacio Lula da Silva said that the proposed deal between China and the Southern Common Market (Mercosur), which also includes Uruguay and Paraguay as full members, will modernise and open up the South American trade bloc to other regions.
A possible agreement can be discussed after a similar free-trade agreement (FTA) with the European Union is finalised, added Lula, who returned for a third term as president in January.
UN launches 2023 Global Survey on Digital and Sustainable Trade (Trade Finance Global)
The fifth UN Global Survey on Digital and Sustainable Trade Facilitation 2023 has been launched by the five United Nations Regional Commissions and the United Nations Conference on Trade and Development (UNCTAD).
The 2023 edition consists of 60 measures, including two new sets of measures on “Trade Facilitation for E-Commerce” and “Wildlife Trade Facilitation”, on cross-border e-commerce and the application of electronic CITES permits and certificates.
The preliminary results of the 2023 Survey will be published in July at untfsurvey.org, followed by the final results in the form of a Global Report and five Regional Reports.
The US, China spy balloon tensions are drifting into politics of the supply chain (CNBC)
The tensions between the U.S. and China over alleged spy balloons shot down over North America have some of the top trade associations representing companies reliant on Chinese manufacturing to urge their members to diversify their supply chains.
The National Retail Federation, the American Footwear and Apparel Association, and the Council of Supply Chain Management Professionals tell CNBC that the rising tensions with China due to the spy balloons have resulted in new concerns from their member companies, already dealing in recent years with tariffs imposed by President Donald Trump and President Joe Biden, and Covid shutdowns under the “Zero Covid” policy.
“The ongoing tensions with the U.S.-China trade relationship continue to highlight the need for supply chain diversification,” said Jon Gold, vice president of supply chain and customs policy of the National Retail Federation. “From the tariffs to Covid-19 to additional challenges, retailers are looking for opportunities to diversify their sourcing to ensure they have resilient supply chains to meet consumer needs.”
Event on decarbonization standards to promote transparency and coherence in steel sector (World Trade Organization)
The WTO’s “Trade Forum on Decarbonization Standards: Promoting coherence and transparency in the steel sector” will bring together over 20 speakers from the public and private sectors in an event on 9 March. The full programme and registration are now available online.
The event will promote multi-stakeholder dialogue on the role of coherent and transparent standards in accelerating the global scale-up of low-carbon steelmaking technologies and avoiding trade frictions. It will bring together WTO members, industry, standards bodies, international organizations and academic experts to share perspectives on challenges and opportunities around decarbonization standards and the potential role of the WTO in promoting trade-related international cooperation, with a focus on the iron and steel supply chain.
It will feature a Leaders' Conversation with Director-General Ngozi Okonjo-Iweala; Mr Aditya Mittal, chief executive officer of Arcelor Mittal; and Princess Abze Djigma, Special Envoy of the President of Burkina Faso for Sustainable Development Goals and Climate Change.
U.S. Finding Challenges in Increasing Resilience of Global Supply Chains (Sandler, Travis & Rosenberg, P.A.)
The U.S. has been actively engaging in efforts with other countries to strengthen global supply chains but is running into a number of related challenges, a recent Government Accountability Office report states.
The COVID-19 pandemic and Russia’s war in Ukraine have both disrupted global supply chains and highlighted their vulnerabilities. In response, GAO states, the Office of the U.S. Trade Representative and the departments of Commerce and State have expanded their diplomatic engagement on strengthening supply chains. These efforts have included initiating over a dozen dialogues, working groups, and forums to coordinate on supply chain resilience (e.g., through the U.S.-EU Trade and Technology Council, the Indo-Pacific Economic Framework, and the Summit on Global Supply Chain Resilience) as well as bilateral coordination with allies and partners (including Canada, Mexico, Japan, Korea, Taiwan, the United Kingdom, and Singapore) to develop supply chain principles and plans.
However, the report adds, USTR, DOC, and State have encountered the following challenges in coordinating supply chain resilience engagements with others.
EU-Indonesia FTA negotiations see progress (Vietnam Plus)
Indonesia and the European Union (EU) have made significant progress in the 13th round of negotiations on the Comprehensive Economic Partnership Agreement (CEPA), including the completion of the chapter related to good regulatory practice (GRP) and the geographical indication section in the chapter related to intellectual property rights.
In a statement released on February 13, the Indonesian Trade Ministry's Director of Bilateral Negotiations, Johni Martha, said that the GRP chapter is the second chapter to be agreed upon by the two sides after the chapter related to hygiene and plant quarantine.
Johni said that the 13th round of negotiations was very important as both sides showed their willingness to push forward the negotiations.
World economy faces growing headwind of services-trade barriers (Economic Times)
The world economy’s recovery from the consequences of the Covid pandemic and the war in Ukraine is increasingly hampered by governments slapping more restrictions on services trade.
According to an OECD index, the average increase in new measures across all sectors was five times higher in 2022 than in 2021. Audio-visual, computer and physical infrastructure services were particularly affected.
“Continued efforts to remove barriers to trade in services are essential to facilitate a strong and sustained economic recovery to strengthen resilience to future shocks and promote a more sustainable trading system,” OECD Secretary-General Mathias Cormann said.
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ECA Support to Equatorial Guinea for the Development of a National AfCFTA Strategy (UNECA)
Malabo, 13 February 2023 (ECA) - the United Nations Economic Commission for Africa (ECA) Sub-Regional Office for Central Africa (SRO-CA), in collaboration with the ECA African Trade Policy Center (ATPC), is currently providing support to the Republic of Equatorial Guinea in the development of a national strategy for the implementation of the African Continental Free Trade Area (AfCFTA) in cooperation with the African Union Commission and with the financial support of the European Union (EU). In this context, an ECA SRO-CA delegation comprised of Ms. Caitlyn Carrico, Economic Affairs Officer, and Mr. Thiago Silveira Gasser, Associate Economic Affairs Officer, will carry out a mission in Malabo from 13 to 17 February 2023 to officially launch consultations on the national AfCFTA strategy for Equatorial Guinea as well as to raise awareness on the AfCFTA and the process of AfCFTA strategy development and implementation.
The delegation will hold bilateral consultations with Ministries and government institutions to promote the potential of the AfCFTA for the economy of Equatorial Guinea as well as to gain critical inputs on strategy development. Planned meetings include a high-level meeting with the Ministry of Trade and promotion of small and medium enterprises as well as technical meetings with teams from the Ministries of Trade and promotion of small and medium enterprises, Planning, Industry, Regional integration, Hydrocarbons, Agriculture, livestock and forestry, the National Statistics Office, and Customs. The Team will also meet with civil society actors including the Chamber of Commerce and Universities. A national consultant has been recruited and will accompany the delegation during these meetings.
FG pledges improved trade relations with ECOWAS states (Vanguard)
The Nigerian Government has reiterated its commitment towards enhancing trade and economic integration with member countries of ECOWAS and the promotion of efficient operations at Seme-Krake border.
This is contained in a statement by Henshaw Ogubike, Director, Press and Public Relations Ministry of Transportation of on Monday in Abuja.
Ogubike said the Minister of State for Transportation, Prince Ademola Adegoroye, stated the commitment at the inauguration of 300 multi million naira projects executed by the ministry at Seme-Krake Joint Border Post in Lagos.
According to him, the projects include roofing of three walkways for arriving and departing passengers, construction of 20 toilet facilities and provision of two solar-powered boreholes/water treatment plants.
GIRAV quality standards on maize value chain inaugurated (The Point)
The Gambia Standards Bureau in collaboration with the Gambia Inclusiveness and Resilient Agricultural Value Chain (GIRAV) Project, on Friday, inaugurated the GIRAV quality component for the development of standards for maize and its value chain.
Speaking during the event held at the Baobab Holiday Resort, Hassan Saidou Gaye, the deputy permanent secretary at the Ministry of Trade, explained that the importance of national and international standards has increased with the globalisation of the world economy.
“Gambia is not an island anymore; we are part of a global village and the wider AfCFTA community. Not two million people as before but part of 1.3 billion people of the African continent. In order to effectively trade and export what we produce, we need standards and universally accepted standards,” he said.
Coffee, tiles top the list in AfCFTA export drive (IPP Media)
Dr Ashatu Kijaji, the Investments, Industry and Trade minister, made this observation when addressing a gathering of members of the Confederation of Tanzania Industries (CTI), with Finance and Planning minister Dr Mwigulu Nchemba in attendance.
She said that Tanzania is among seven initial countries according priority to the scheme, thus exporting their products to the Africa-wide market to kindred member states who have ratified the free trade area protocol.
Urging manufacturers and traders to seek out those opportunities, she said her meeting with CTI members on the subject is the third in a series, seeking to raise awareness of industrial sector stakeholders on what is required to make use of the facility.
Coffee is the pioneer product under that arrangement, not to be exported raw but processed while locally manufactured tiles are also being lined up for regional markets, she said
Africa: One Year Later - The Impact of the Russian Conflict With Ukraine On Africa (All Africa)
In today's interconnected world, shots fired in one corner of the globe create ripple effects in other, seemingly far, places. One year since the Russian invasion of Ukraine, African countries, although physically miles away, have not been spared its aftershocks.
Against a backdrop of soaring food and energy prices and the shrinking basket of global economic cooperation financing, African countries are also contending with how to position themselves within the significant shifts in international energy policies, even as they are approached by various partners who are also grappling with the energy access implications for their own citizens.
In 2020, 15 African countries imported over 50 per cent of their wheat products from the Russian Federation or Ukraine. Six of these countries (Eritrea, Egypt, Benin, Sudan, Djibouti, and Tanzania) imported over 70 per cent of their wheat from the region.
African Businesswomen Press for AU Border Harassment Dialogue (VOA News)
African women and girls are discussing the harassment and discrimination challenges they face trying to conduct cross-border business under the African Continental Free Trade Agreement (AfCFTA).
The meeting in Addis Ababa, called "Gender is My Agenda," is taking place ahead of the African Union heads of state summit, which is set to begin Saturday and is expected to address progress of the African trade agreement.
Elizabeth Ajok, a South Sudanese national, said women often face problems at border crossings that men don't have to experience.
"They are facing a lot of challenges like violence at the border, they are being intimidated, and sometimes some of their items are being confiscated or their goods are taken because of clearance," Ajok said. "And they will also overcharge you because you are a woman. You will be taxed. Sometimes they just look at us. They see that you are just a woman, so you don't deserve to do business."
Ruto adopts Uhuru’s draft trade deal with America (Business Insider Africa)
The Ruto administration has adopted the key areas of cooperation agreed upon by the previous regime in the proposed trade deal with the US, setting the stage for the negotiations to progress ahead of 2025 deadline.
President William Ruto’s negotiating team went through the 11 pillars of the proposed trade deal with their US counterparts in Washington last week and agreed to forge ahead with the talks “in the coming months”.
The Kenyan delegation, led by Trade PS Alfred K’Ombudo, and the US delegation “exchanged views” on the key concepts agreed on last July without introducing new clauses, according to the statement after the week-long meeting.
The US-Kenya Strategic Trade and Investment Partnership, launched by the Biden administration, will replace the two-decade-old Africa Growth and Opportunity Act (Agoa).
DCTS: Nigeria Targets £14bn Non-oil Exports To UK By 2030 – Yakusak (Leadership News)
Nigeria is targeting to grow its exports to the United Kingdom (UK) from 0.3 per cent to five per cent share of the market valued at £14 billion by 2030.
Executive director/CEO of the Nigerian Export Promotion Council (NEPC), Dr. Ezra Yakusak, who made this known said would achieved through the recently launched Developing Countries Trade Scheme (DCTS) by the UK.
Under the new scheme, DCTS is to replace the UK’s current Generalized System of Preference (GSP), while Nigeria will now be benefiting from 9500 tariff lines instead of the previous eight. Besides, Nigeria no longer has to ratify the 36 conventions with the UK before trading. This is significantly more generous than both the EU’s GSP scheme and the US’ AGOA scheme and based on current trade volumes, would mean that 99 per cent of goods exports to the UK are duty-free.
“I have the honour to speak on behalf of the European Union and its Member States.
“We take note of the 2022 LDC report that has been presented for this agenda item. The report legitimately highlights the particularly vulnerable situation in which LDCs find themselves in the face of climate change. Limited fiscal space of LDCs, which has been further exacerbated by the COVID-19 pandemic, inflationary pressures and debt burdens, restricts their capacity to offset the consequences of extreme weather events.
“Representing 40% of global Aid for Trade programmes, we support regional, as well as global, economic integration, not least by being AU’s main partner for its African Continental Free Trade Area.”
Russia’s growing trade in arms, oil and African politics (Financial Times)
At the inaugural Russia-Africa summit in the Black Sea resort of Sochi in 2019, Russian president Vladimir Putin promised to double trade with African states within five years as he sought to win new friends with offers of nuclear power plants and fighter jets.
Three years on, few of those promises have materialised and yet Russian influence on the continent is growing faster than at any point since the end of the cold war.
Russian trade with Africa in 2021, the most recent full-year figure available, was worth $15.6bn — a tenth of the continent’s trade with China and a quarter up on 2018, according to IMF data. However, Moscow remains the biggest exporter of arms to Africa and — through investments and trading relationships in goods from diamonds to citrus fruit — has become a useful partner for African states.
Euro zone is seen dodging recession as energy crunch eases (The Business Standard)
The euro-zone economy will fare better this year than previously feared as a mild winter and high levels of gas storage help to ease the energy crisis, and the labor market holds up, according to the European Commission.
European Union officials in Brussels raised their forecast for growth this year, predicting a 0.9% expansion in the currency bloc, and said it would narrowly avoid a recession. They also cut their projection for consumer price growth, though it remains high at 5.6%.
Economy Commissioner Paolo Gentiloni cautioned that "better than expected doesn't mean good," however, telling reporters that Europeans still face a difficult period with growth slowing and inflation only easing gradually.
US stocks trade higher a day ahead of a key inflation reading (Business Insider Africa)
Economists expect January's headline consumer price index reading to cool further to an annual rate of 6.2% from 6.5% the prior month, according to Bloomberg. But even fresh signs of disinflation won't mean the fight to rein in prices is over.
"There has been an expectation that [inflation] will go away quickly and painlessly, I don't think it's guaranteed that's the base case," Fed Chairman Jerome Powell said in a speech last week at the Economic Club of Washington DC. "It will take some time."
Meanwhile, the S&P 500 is coming off its worst week of the year so far, closing Friday down 1.1% over the five-day stretch.
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Maritime Chamber wants to contribute more to South Africa’s economic recovery (Engineering News)
Industry organisation the Maritime Business Chamber has written an open letter to President Cyril Ramaphosa seeking to advise government on how the maritime sector can contribute to the country’s economic recovery. Chairperson Unathi Sonti writes that South Africa has, since 2013, been working on a strategy for the sector, including an integrated maritime development framework and industrialisation programme for the country, which includes Operations Phakisa and the current process of the Oceans Economy Master Plan.
The letter states that South Africa’s maritime sector has not yet realised the R177-billion estimated contribution it could make to the country’s gross domestic product.
The letter highlights the chamber’s belief that the implementation of the South African Maritime Charter has the potential to generate revenue of R56.3-billion.
Ugandan exports to Rwanda flourish on food supplies, raw materials (The East African)
Rwanda’s appetite for imports from Ugandan grew to a record $60.55 million in the fourth quarter of 2022 from $15.64 million in the first nine months to September as Kigali turned to her regional neighbours for food supplies and raw materials. Latest Bank of Uganda trading data shows exports, which had stagnated in single-digit millions of dollars between January and September 2022, grew to an average of $20 million monthly between October-December.
Highlights published in the East African Cross Border Trade Bulletin by the Food Security and Nutrition Working Group (FSNWG) show that Rwandan authorities were under pressure to provide adequate food and also ensure sufficient supply for raw material, especially for breweries.
Kenya and the United States have concluded the first phase of their trade talks (Business Insider Africa)
The five days of negotiations for the free trade agreement are expected to produce results, according to the delegation from Kenya, led by Trade Principal Secretary Alfred K’Ombudo.
“During the meetings. the two sides exchanged views on the key concepts to be addressed on almost all of the areas outlined in the 141h July, 2022 joint statement announcing the initiative,’ a statement from the ministry reads in part. The Partnership aims to boost investment, enhance regional economic integration in Africa, and advance sustainable and inclusive economic growth for the benefit of workers, consumers, and businesses (including micro, small, and medium-sized firms).
Kenya, TZ court cases block tonnes of GMO maize seeds (Business Daily)
Four court cases have blocked the release of 11 tonnes of genetically modified maize seeds that were to be made available to farmers this planting season. The BT maize seeds had been planned for release to farmers by the Kenya Agricultural and Livestock Research Organisation (KALRO) in the months of March and April. Developed by KALRO in its laboratories, the maize seeds that were to be availed at a subsidised fee had been undergoing testing in confined field trials in the country for years.
The orders barred the government from importing, transacting, distributing and growing GMOs.
The petitioners are challenging the constitutionality of the Cabinet decision to remove the ban in October last year without public participation as required by law. Several traders have approached NBA with requests to import GM products into the country, including a consignment of GM white maize from South Africa. The regulator, however, froze the requests until after the determination of the court cases.
Tanzania Economic Update: Universal Access to Water and Sanitation Could Transform Social and Economic Development (World Bank)
Since its Water Sector Development Program (WSDP) got underway in 2006, Tanzania has made significant progress improving the access of thousands of citizens like Mama Kashilila to water, sanitation, and hygiene (WASH) services. Against a backdrop of low coverage and slow progress in the sector during the Millennium Development Goals era, which ended in 2015, the country has renewed its commitment to expanding access for its population by fully adopting the ambitious Sustainable Development Goal (SDG) sector targets, which the UN has set for 2030.
The National Panel Survey (NPS) 2020/2021, released in January 2023, shows that since the NPS 2014/2015, four in every 10 households have gained access to improved sanitation (up from two-and-half households), and half the population now has access to clean water in the rainy season and two-thirds during the dry seasons.
Reflecting on the importance of the progress made, as well as remaining gaps, the authors of the 18th Tanzania Economic Update Clean Water, Bright Future: The Transformative Impact of Investing in WASH, just published by the World Bank, argue the country stands to gain much more by pushing to deliver the goals of its third, by far most ambitious WSDP phase (WSDP-3, 2022–2026), whose financing requirements are estimated at $6.5 billion.
“The devastating consequences of inadequate access, versus the benefits gained, make such an investment highly cost-effective,” said Nathan Belete, the World Bank’s Country Director in Tanzania. “Achieving WASH goals can support the jobs agenda while mitigating the adverse effects poor water and sanitation have on workforce productivity. And they’re crucial for Tanzania to achieve its objectives for inclusive growth and property reduction.”
Digital Economy Can Boost Eswatini’s Development and Enhance Service Delivery (World Bank)
The digital economy offers Eswatini a range of opportunities to improve economic development and enhance public and private services, highlights a World Bank Digital Economy Diagnostic for Eswatini that launched today. The report provides an assessment of the five pillars of Eswatini’s digital economy comprising digital infrastructure, digital platforms, digital financial services, digital skills, and digital entrepreneurship. The Digital Economy for Africa (DE4A) is part of the World Bank’s support for the Africa Union’s Digital Transformation Strategy for Africa, which aspires to see every African person, business, and government digitally enabled by 2030.
“Climate smart agriculture will benefit farmers, who represent 70% of Eswatini’s population, by increasing the productivity of their lands and enhancing their livelihoods. Implementing the recommendations of the Digital Economy Diagnostic for Eswatini would make a tangible contribution to the development of Eswatini’s economy,” says Marie Francoise Marie-Nelly, Country Director for South Africa, Botswana, Namibia, Lesotho and Eswatini.
The Digital Economy Diagnostic for Eswatini seeks to support government institutions and stakeholders by taking stock of the current state of the digital economy and provides recommendations for further development. This was achieved through an assessment of the five foundational pillars of the digital economy in Eswatini, based on consultations with relevant public and private stakeholders.
Tanzania loses Sh3.3 trillion annually to illicit trade (The Citizen)
Despite adopting measures to combat illicit financial flows (IFFs), Tanzania loses an estimated $1.5 billion annually in revenue to trade-based money laundering (TBML), a deprivation of the country’s much-needed tax revenues. This is according to a policy memo published by Global Financial Integrity (GFI) and its allies, indicating that if not addressed, TBML has adverse effects on economies and societies as it perpetuates criminal activities such as illicit wildlife trade, bribery, corruption, and tax evasion.
Director for Taxpayer Services and Education of Tanzania Revenue Authority (TRA) Mr Richard Kayombo said: “We’ve designed various measures to reduce or deter the said illicit trade. This includes and not limited to cooperating with law enforcers in curbing the matter,”
According to him, in the awareness campaign, TRA sensitises the need for businesses within the East African Community and the Southern African Development Community (Sadc), to make use of a free trade area committed, amongst other things, to eliminating tariff and non-tariff barriers amongst its members.
“This means that goods originating from Tanzania and destined for any of Sadc or EAC member states, enjoy no tariff rates and no or reduced quantitative restrictions at destination countries. The same applies to goods imported into the country from other Sadc and EAC member states,” he reassured.
Push for local processing and consumption of cocoa intensifies (MyJoyOnline)
The 2023 National Chocolate Week Celebrations has been launched with a renewed purpose to empower artisanal cocoa processors to take advantage of the new incentives within the consumption campaign to become more competitive to meet market demands.
Launching the celebrations at the Accra Tourist Information Centre, the Information Minister, Kojo Oppong Nkrumah acknowledged that the cocoa industry plays a significant role in stabilising the local economy, hence the need to intensify efforts aimed at boosting local production, processing, and consumption.
Eswatini bans trade in copper for scrap as rampant theft affects service providers in region (News24)
Scrapyards in Eswatini were this week instructed to stop trading in copper as the government moved ahead with plans to ban the export of such commodities. The temporary ban is a stop-gap measure by the government to contain “theft cases of copper cables and copper-based infrastructure, vandalism and malicious damage of millions worth of public utilities infrastructure”.
Khumalo said there would be strict surveillance at all ports of entry and exit, particularly trucks. Copper theft is a regional crisis, with syndicates targeting the mining, transportation and telecommunications industries. Copper prices soared over the past decade, with the commodity almost tripling in value since 2015.In South Africa, copper cable theft costs the economy between R5 billion and R7 billion annually, according to estimates by the Chamber of Commerce.
Farmers’ income set for record numbers (The Citizen)
Farmers’ incomes increased by 13 percent over the just ended season, as attempts to improve data collecting outweighed a drop in output from some key products. In an effort to improve data collection, the government has added sugarcane and grapes to the list of crops sold through cooperative unions, while also including beans on the list. Earnings are likely to rise further in the 2022/23 season, given the trade season for some produce, such as cashew nuts and coffee, is still ongoing.
At the same time, in 2022/23, other crops such as sesame have been sold through cooperative unions in some regions such as Lindi, Mtwara, and Ruvuma, while they have been exchanged through normal channels in others.
Official data from the ministry of Agriculture gathered by the Tanzania Cooperatives Development Commission (TCDC) show that farmers earned Sh1.752 trillion in the 2022/23 as compared to Sh1.553 trillion garnered in the 2021/22 season.
the growth occurred despite low volumes and incomes recorded for key cash crops such as cashew nuts, coffee, sesame, and sisal traded through cooperative unions in the 2022/23 season.
Manufacturing sector growing slower than in other EAC states – PBO (The Star)
The manufacturing sector in Kenya has been growing slower than in other countries in the East African Community region in the last decade, Parliamentary Budget Office has said. PBO said the sector has been growing faster in neighbouring countries although manufacturing in Kenya is widely recognised as the largest in the region.” The implication of such a trend, combined with increasing cheap imports from Asian countries in the region is that the market share of Kenya’s manufacturing exports in those countries may be declining,” PBO said in a report.
It said the lacklustre performance of the sector has been attributed to a combination of factors. It named the reasons as poor quality of labour, high cost of transport and electricity, and lack of access to affordable finance (mainly by SMEs) among others.
Parliament ratifies Convention on Cross-Border Cooperation (BusinessGhana)
Parliament has adopted the report of the Committee on Foreign Affairs on African Union Convention on Cross-Border Cooperation Niamey Convention to promote cross-border cooperation, ensure peaceful resolutions of border disputes and would promote and ease free movement of persons and goods.
The Niamey Convention is designed to promote cross-border cooperation in six core areas, which are: Mapping and geographical information sharing; Socioeconomic development; Cultural activities and sports; Security, especially combating cross-border crime, terrorism, piracy, and other forms of crime; Demining of borders and Institutional development.
The Niamey Convention aims to facilitate the peaceful resolution of border disputes at both local and international levels. It also seeks to promote effective and efficient integrated border management to serve as a catalyst for development and economic growth among Member Countries.
The Niamey Convention is indicative of the African Union’s recognition of the important role that good border governance plays in ensuring peace, security and sustainable development.
Nigeria Missed Gains Of High Oil Price – IMF (Leadership)
The Executive Board of the International Monetary Fund (IMF) has concluded the Article IV consultation with Nigeria, as it observed that the country missed the gains of rising oil prices. It warned that the country’s oil sector faces downside risks from possible production and price volatility. The Executive Directors agreed with the thrust of the staff appraisal as they welcomed the broadening of Nigeria’s economic recovery but noted that the opportunity to reap the benefits from higher global oil prices was missed.
Directors therefore highlighted the need for bold fiscal reforms to create needed policy space, put public debt on sound footing, and reduce vulnerabilities.
In the medium term, Directors recommended modernizing customs administration, rationalizing tax incentives, and raising tax rates to the levels of the Economic Community of West African States (ECOWAS) .
FG says Nigeria has 46 of the 240 Free Trade Zones in Africa (Nairametrics)
The Federal Government has revealed that Nigeria houses 46 of the 240 Free Trade Zones (FTZ) in Africa, citing that the number could increase further as more states apply for FTZ licenses. This was disclosed by Prof. Adesoji Adesugba, the Managing Director of the Nigeria Export Processing Zones Authority (NEPZA).
The NEPZA chief said 30 of the 46 FTZs in Nigeria are currently functional. He also responded to claims that Akwa Ibom state had difficulties obtaining a license, emphasising that they never applied for one.
Economic Impacts of Covid-19 and Policy Options in the Seychelles (AfDB)
This report presents an in-depth assessment of the impact of the COVID-19 pandemic on the economy of the Seychelles, focusing especially on the pandemic’s effects on the key productive sectors of the economy: fishing, tourism, and manufacturing sectors. The report focuses on the short-run and the medium-run impacts of the COVID-19 pandemic and examines the potential of two different government policy responses in fostering the longer-term recovery and resilience of the Seychelles economy through an exploration of their aggregate and sectoral impacts.
Africa needs pro-poor and inclusive recovery efforts to foster economic transformation (UNECA)
Following the multiple financial, health, and climate crises affecting Africa, countries should accelerate inclusive recovery efforts to boost economic growth, the Economic Commission for Africa’s Acting Executive Secretary, Mr. Antonio Pedro, has urged. Speaking at a press briefing ahead of the 55th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development (CoM 2023), Mr. Pedro said the impact of the shocks caused by COVID -19, the war in Ukraine and climate change have pushed more people into extreme poverty and have increased inequality worldwide.
“Africa is falling even further behind, with the continent now accounting for the highest proportion of the world’s poor of any region globally,” Mr. Pedro warned, emphasizing that the growing number of newly poor and vulnerable people makes it harder to close the gap between the rich and the poor.
“Recovery efforts must be pro-poor and inclusive, with a view to fostering a new social contract that offers equal opportunity for all,” he said, adding that, “It is important that our growth does not leave anyone behind and if we do so then the social contract that is key to have stability and prosperity will be completely disrupted.”
Experts urge African leaders to take strong climate change action (The East African)
As African leaders gather next week for the African Union summit under the theme ‘Acceleration of AfCFTA Implementation’, experts are urging that climate change and the energy crisis to be placed at the centre of the free trade talks. They argue that AfCFTA (African Continental Free Trade Area) presents an opportunity for Africa to be a dynamic force in the global arena and investing in renewable energy sources can provide access to affordable energy while also reducing greenhouse gas emissions.
The International Energy Agency (IEA) reports that energy poverty levels in Africa are at an alarming rate, with over 70 percent of the population living without access to electricity.
IEA also notes that energy poverty is particularly high in rural areas, where only 20 percent of the population has access to electricity. This lack of access to electricity has a direct impact on poverty levels as families are unable to generate income or engage in small-scale businesses that require power.
Taking stock of America’s flagship trade programme for Africa (The Economist)
Of America’s top 30 imports from AGOA-eligible countries, 20 would enter tariff-free anyway, according to the UN. Those include precious metals, diamonds, cocoa, vanilla and coffee.
The important exception is clothing, which ordinarily attracts tariffs as high as 32%. Here AGOA gives African exporters an edge. Manufacturers in the poorest African countries are exempt from tariffs even if they use fabric made elsewhere. In Lesotho, Madagascar, Kenya and Ethiopia, hundreds of thousands of workers stitch materials shipped from Asia into clothes for American consumers.
2nd High-level Meeting of the OPEC-Africa Energy Dialogue concludes (OPEC)
The 2nd High-level Meeting of the OPEC-Africa Energy Dialogue took place today, 12 February 2023, in Cairo involving leading energy partners from across the African continent. In a follow-up to the highly successful inaugural Dialogue held on 2 June 2021, OPEC hosted the second meeting with the African Union, the African Petroleum Producers’ Organization (APPO) and the African Refiners and Distributors Association (ARDA) to conduct open and transparent discussions on key energy-related topics relevant to Africa and its energy industries.
“The opportunities for the continent will be significant in the years ahead, but there will undoubtedly be a great number of challenges in store as this industry continues to evolve towards a lower-carbon future,” OPEC Secretary General, HE Haitham Al Ghais stated. “This complex and double-sided reality is what makes global energy cooperation and events such as this one of dire importance.”
Ghana hosts World Trade Centres Association General Assembly in April (Graphic Online)
The 53rd WTCA General Assembly, which will be held in Accra from April 23 to 28, will be the first to be hosted in Africa in the over 50-year history of the WTCA, a global network of 300 business organisations in more than 100 countries.
The global event is expected to be one of the biggest gatherings of business executives, investors, financial institutions, international trade organisations, policy makers and entrepreneurs on the African continent.
On the theme: “Towards African Economic Integration and Enhanced Global Presence”, the assembly will foster global collaborations among the various WTCs, as well as create trade and investment opportunities for businesses and countries.
Women, girls wary of AU free trade cross border pact (Africa Science News)
Ahead of the African Union Summit of Heads of Government and State slated to discuss African Continental Free Trade Area (AfCFTA), leading African women and girl specialists have raised concerns about the impact the pact may have on women and girls who trade across borders.
At the 39th Gender Is My Agenda (GIMAC) Youth Summit event Sunday, February 12, women and youth warned that the African free trade area pact may further marginalize women and girls.
“We need to operationalise AfCFTA, make it practical by removing the systemic and structural barriers, and start challenging the trade regimes that make it impossible to navigate the borders. Our focus as women in trade should not be just on cross-border trade but also on the macro level systems we need to engage central banks, customs unions, and the office of the registration among other partner stakeholders. ACFTA shouldn’t just be looked at in one economic dimension but the social, political, and environmental aspects matter as well,” said Memory Kachambwa, the Executive Director, of The African Women’s Development and Communications Network.
West Africa Oil and Products Imports Facing Structural Shifts (Hellenic Shipping News)
The looming completion of West Africa’s Dangote refinery is expected to have a significant impact on crude and product tanker flows to the region. Already though, a shift is expected due to the fact that EU exports of products is about to decline, due to the Russian oil ban.
In late 2022, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reported that the refinery is nearing completion, being 97% commissioned, whilst many media outlets suggested that the scheduled start-up date is in Q1 2023. In contrast, the IEA currently expects the refinery to fire up around mid-2023, but the agency also acknowledges that further delays cannot be ruled out due to the sheer size and complexity of the single train refinery.
An increase in crude imports into Lekki will signal that the start date is approaching fast; however, so far this has not been witnessed despite the speculation”.
DDG Ellard discusses benefits of multilateralism, risks of unilateralism, WTO reform (WTO)
DDG Ellard discussed the role of international organizations in delivering for the global public good, addressing challenges of the global commons, and providing a more enduring, equitable and cooperative basis for democratic global governance rather than unilateral action.
DDG Ellard elaborated on the risks to the multilateral system from unilateral action and reshoring of supply chains. She also highlighted the related concerns expressed by developing countries, such as being left behind in an industrial or green subsidies race.
“Multilateralism is alive and well,” she emphasized. “And it is especially needed in times like these, when the existing global international order is under threat and the temptation for unilateral action is high,” she concluded.
DG Okonjo-Iweala highlights importance of trade cooperation at new carbon mitigation forum (WTO)
“To keep the world pulling together on climate action, advanced, emerging, and developing economies will need to find ways to coordinate across divergent national policies. Coordination in turn will rest on data and shared understandings about the impacts of different policies. That’s why this forum matters,” DG Okonjo-Iweala said at the launch event, at the invitation of the OECD.
Singapore submits formal acceptance of Agreement on Fisheries Subsidies (WTO)
Director-General Ngozi Okonjo-Iweala said: “Singapore’s formal acceptance of the WTO Agreement on Fisheries Subsidies is an important step towards its entry into force. It adds to the diversity of economies needed for the collective effort to uphold ocean sustainability worldwide. As a stalwart supporter of the multilateral trading system and an active participant in both the fisheries subsidies negotiations and ongoing discussions on trade and environment, Singapore once again leads the way in highlighting the importance of global cooperation and ensuring the WTO is responsive to the challenges of our time.”
Five agencies issue joint call to address food and nutrition security crisis (WTO)
Joint Statement by the Heads of the Food and Agriculture Organization, International Monetary Fund, World Bank Group, World Food Programme and World Trade Organization on the Global Food and Nutrition Security Crisis
Globally, poverty and food insecurity are both on the rise after decades of development gains. Supply chain disruptions, climate change, the COVID-19 pandemic, financial tightening through rising interest rates and the war in Ukraine have caused an unprecedented shock to the global food system, with the most vulnerable hit the hardest. Food inflation remains high in the world, with dozens of countries experiencing double digit inflation. According to WFP, 349 million people across 79 countries are acutely food insecure.
This situation is expected to worsen, with global food supplies projected to drop to a three-year low in 2022/2023.(1) The need is especially dire in 24 countries that FAO and WFP have identified as hunger hotspots, of which 16 are in Africa.(2) Fertilizer affordability as defined by the ratio between food prices and fertilizer prices(3) is also the lowest since the 2007/2008 food crisis, which is leading to lower food production and impacting smallholder farmers the hardest, worsening the already high local food prices.
To prevent a worsening of the food and nutrition security crisis, further urgent actions are required to (i) rescue hunger hotspots, (ii) facilitate trade, improve the functioning of markets, and enhance the role of the private sector, and (iii) reform and repurpose harmful subsidies with careful targeting and efficiency. Countries should balance short-term urgent interventions with longer-term resilience efforts as they respond to the crisis.
G20 gives India opportunity address global challenges (Sunday Observer)
The Union Finance Minister of India, Nirmala Sitharaman has said that India’s ongoing presidency of the G-20 grouping is a unique opportunity to strengthen the country’s role in the world economic order when countries across the globe are facing various challenges.
Presenting the budget for the fiscal year 2023–24 in the Lok Sabha, Sitharaman said India is steering an ambitious, people-centric agenda to address global challenges and facilitate sustainable economic development.
The United Nations Conference on Trade and Development (UNCTAD) and the Government of Barbados will organize the first Global Supply Chain Forum in Barbados from 5 to 8 March 2024.
The high-level forum responds to the need to tackle ongoing and future supply chain challenges, covering issues such as financing, sustainable and resilient transport and logistics, trade facilitation, transport connectivity, digitalization, food security, transport costs, climate change adaptation and
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SA to continue to expand investment opportunities across the globe (SA News)
President Cyril Ramaphosa announced on Thursday that South Africa will continue to expand trade and investment opportunities with global trade partners to attract investment and financing.
According to the President, who was delivering his State of the Nation Address (SONA), this will be done through participation in multilateral forums such as the G20, or Group of Twenty, which will be hosted in the country in 2025.
The focus will be on collaboration on sustainable development, the Just Energy Transition, industrialisation and the implementation of the (African Continental Free Trade Area) AfCFTA.
“Once fully operationalised, the Continental Free Trade will provide an unprecedented opportunity to deepen African economic integration, grow national economies, and open up new frontiers and markets for South African companies,” President Ramaphosa said.
Government commits to funding SMMEs (SA News)
President Cyril Ramaphosa has announced funding initiatives for small businesses with the intention of creating jobs and growing established small businesses.
Delivering the State of the Nation Address (SONA) on Thursday, the President said government plans to provide R1.4 billion to finance over 90 000 entrepreneurs.
In addition, government in partnership with the SA SME Fund is working to establish a R10 billion fund to support SMME growth.
Developing Countries Trade Scheme To Boost Nigerian Economy (Voice of Nigeria)
The recently launched Developing Countries Trade Scheme, DCTS by the United Kingdom, UK will further support sustainable economic growth for Nigeria’s non-oil export sector.
The Executive Director/CEO of the Nigerian Export Promotion Council, NEPC, Dr. Ezra Yakusak stated this at a workshop organised by the UK-Africa Trade and Investment Service.
Dr. Ezra explained that the recent development by DCTS would boost trade with Least Developing Countries, LDCs through reduced tariffs as well as simplified Rules of Origin for LDCs.
According to him “The opportunity for Nigeria to increase its non-oil exports to the UK in sectors where supply currently exceeds the demand are Cocoa, fertilizers, Sesame, Ginger, and Cashew nuts. Others are Natural Rubber, Cotton, Frozen Prawn, Plantain, and Tomatoes”.
ZimTrade to capacitate smallholder horticulture farmers (The Herald)
ZimTrade is working to capacitate thousands of smallholder horticulture farmers in Masvingo Province to help them unlock the province’s estimated US$386 million export potential.
The initiatives also involve reviving fruit plantations in the province with the capacity to generate hundreds of millions of US dollars from exports.
Zimbabwe is angling for export-led economic growth, which is expected to contribute towards achieving an upper-middle-income economy as espoused in the National Development Strategy (NDS1).
MICT (MICT) to Revolutionize Africa’s Food Industry Through Wholly Owned Subsidiary, Tingo Foods (StreetInsider.com)
MICT, Inc. (NASDAQ: MICT) (“MICT” or the “Company”) announced today that it has entered into a corporate transaction giving it ownership of 100% of Tingo Foods PLC (“Tingo Foods”), which has successfully developed a food processing business with a current capacity to process and wholesale more than $1 billion of food produce per annum. Through a joint venture, Tingo Foods has also committed to build and operate a state-of-the-art $1.6 billion food processing facility in the Delta State of Nigeria. With build, fitout and commissioning scheduled for completion by the end of the first half of 2024, the new facility is expected to multiply the size of the Company’s processing capacity and revenues, while also materially expanding its capacity for the offtake of produce from its farmers and increasing its supply into MICT’s commodity trading platform and export business.
Tingo Foods’ goal is to reduce Africa’s reliance on the import of finished food and beverage products and increase its exports of made-in-Africa produce between countries within the continent, as well as to the rest of the world. This is expected to reduce the prices of finished goods for Africa’s consumers, while also creating a substantial environmental benefit by reducing the current need to export raw food materials outside of the continent for processing only to then import the finished and more expensive products back into Africa.
Tingo Foods currently has the ability to produce and wholesale processed foods such as rice, millet, pasta and noodles. The range and volume of products will then increase considerably upon the launch of the new processing facility to also include tea, coffee, chocolate, biscuits, cooking oils, non-dairy milks, carbonated drinks, and mineral water, among others.
More African watchdogs join plans to monitor digital markets (The East African)
The African Heads of Competition Authorities Dialogue (AHCAD), an umbrella body of competition watchdogs on the continent formed a year ago to bolster the regulators’ ability to watch digital markets, has attracted more members from the region.
The competition watchdogs of the Common Market for Eastern and Southern Africa (Comesa), the Gambia, Morocco, and Zambia have joined the Pan-African alliance in concerted efforts to build a continent-wide capacity to watch the “complicated” digital markets.
The founding members of the bloc – Kenya, South Africa, Nigeria, Egypt and Mauritius – last year said digital markets have transformed how traditional markets work, raising unique competition issues and necessitating the collaboration to regulate.
Morocco bans some vegetable exports to West Africa amid rising prices (Nasdaq)
RABAT, Feb 9 (Reuters) - Morocco has barred fruit and vegetable traders from exporting tomatoes, onions and potatoes to West African countries, its fresh produce association and a government official said on Thursday.
The decision by the agricultural food export authority, Morocco Fodex, was informed to trader by phone and it cited a need to ensure food security at home after tomato prices rose, a senior official in the association said.
The official, who spoke on condition of anonymity, said the ban had been imposed from Thursday on any truck carrying the vegetables to West African markets.
Burkina Faso, Guinea and Mali juntas plan three-way partnership (Reuters)
OUAGADOUGOU, Feb 10 (Reuters) - The foreign ministers of Burkina Faso, Guinea and Mali, all ruled by military juntas, have proposed a regional partnership to facilitate trade and tackle insecurity in the region, they said in a joint statement late on Thursday.
The ministers met in Burkina Faso's capital Ouagadougou this week to discuss collaboration. All three West African countries have experienced military takeovers since 2020, reversing democratic gains that had seen the region shed its tag as Africa's "coup belt".
Frustrations over governments' inability to protect civilians from a worsening jihadist insurgency spurred some of the putsches, which have led to economic sanctions and soured relations with regional and Western allies.
Foreign ministers Olivia Rouamba for Burkina Faso, Morissansa Kouyate for Guinea and Abdoulaye Diop for Mali noted "the need to set up and institutionalise a permanent coordination framework between the three countries".
Commitment to enhance trade between Jamaica and Africa remains resolute, says Hill (Jamaica Observer)
KINGSTON, Jamaica – The commitment to enhance trade between Jamaica and Africa remains resolute, says Minister of Industry, Investment and Commerce, Aubyn Hill.
“We recognise that while we do not yet have a bilateral agreement that speaks specifically to trade between Africa and Jamaica, we believe that there are profitable opportunities for trade and investment in tourism that can be of significant value,” Hill said.
He was speaking at the Africa-Caribbean Trade and Investment Forum, held at the Regional Headquarters, University of the West Indies, Mona on Wednesday, February 8.
SA to host Uganda at inaugural trade expo in Pretoria at end of February (News24)
Pretoria is set to host the inaugural Uganda-South Africa Trade, Tourism, and Investment Summit at the end of this month, as both countries work towards exploring their economic relations.
According to the Uganda Investment Authority (UIA), President Yoweri Museveni and his South African counterpart President Cyril Ramaphosa, or their chosen representatives, will preside over the summit between 27 February and 1 March.
The summit is organised by the Uganda High Commission in Pretoria in partnership with Uganda's foreign affairs, agriculture and fisheries, health, and tourism ministries, as well as various line authorities.
Sharp, Long-lasting Slowdown to Hit Developing Countries Hard (World Bank)
WASHINGTON, Jan. 10, 2023 — Global growth is slowing sharply in the face of elevated inflation, higher interest rates, reduced investment, and disruptions caused by Russia’s invasion of Ukraine, according to the World Bank’s latest Global Economic Prospects report.
Given fragile economic conditions, any new adverse development—such as higher-than-expected inflation, abrupt rises in interest rates to contain it, a resurgence of the COVID-19 pandemic, or escalating geopolitical tensions—could push the global economy into recession. This would mark the first time in more than 80 years that two global recessions have occurred within the same decade.
Over the next two years, per-capita income growth in emerging market and developing economies is projected to average 2.8%—a full percentage point lower than the 2010-2019 average. In Sub-Saharan Africa—which accounts for about 60% of the world’s extreme poor—growth in per capita income over 2023-24 is expected to average just 1.2%, a rate that could cause poverty rates to rise, not fall.
WTO Advanced Trade Policy Course underway in Geneva (World Trade Organization)
Twenty-four government officials from developing countries across the world are attending a two-month Advanced Trade Policy Course from 30 January to 24 March 2023 at the WTO headquarters in Geneva. The course was opened by New Zealand’s Ambassador to the WTO, Clare Kelly, and Jorge Castro from the WTO’s Institute for Training and Technical Cooperation (ITTC).
Ambassador Kelly encouraged participants to take a proactive role during the two-month course and to absorb everything that might be useful in helping their countries use the multilateral trading system as a tool for development.
The course aims to increase participants' capacity to monitor trade policy developments, to learn about the WTO's dispute settlement system and to actively participate in WTO negotiations. Participants also get the opportunity to participate in roundtable discussions with Geneva-based government officials and external trade experts.
Logistics execs see a 2023 Recession as ‘Likely’ or ‘Certain’ (Global Trade Magazine)
Nearly 70% of global logistics executives say they are bracing for recession amid higher costs, slowing demand, and ongoing supply chain disruption arising from China’s battle to contain COVID, Russia’s war in Ukraine, and the impact of climate change.
Ninety percent of the 750 industry professionals surveyed for the 2023 Agility Emerging Markets Logistics Index also say their shipping, storage and other logistics costs remain well above the pre-pandemic levels they were at in early 2020.
“Carriers and shippers are feeling the effects of higher energy prices, tight labor markets and broader inflation even though freight rates have fallen and ports have cleared cargo backlogs,” said Agility Vice Chairman Tarek Sultan. “Three years after the start of the pandemic, there is still a lot of volatility in supply chains. Now there’s fresh uncertainty as consumers and businesses pull back on spending and hiring.”
Iskenderun Port fire to generate $679mn trade disruption: Russell (Logistics Update Africa)
The container fire at the Port of Iskenderun, Turkiye will cause a loss in trade of around $679 million (£562.85 million), according to Russell Group, a data and analytics company.
"The analysis was based on modelling from a time period of February 6 to February 28, 2023, looking at the actions of major shipping companies, which are offering free cancellations, amendments and changes of destination on all shipments heading to Iskenderun, throughout February."
The port suffered a fire on Monday caused by the earthquake that has devastated Turkiye, and the port has been closed with many shipping lines postponing or diverting shipments to Mersin, one of Turkiye’s largest ports.
Air travel set to soar to pre-pandemic levels in 2023: UN aviation agency (UN News)
Air passenger demand in 2023 will rapidly recover to pre-pandemic levels on most routes, the UN aviation agency said on Wednesday.
“Assuring the safe, secure, and sustainable recovery of air services will be key to restoring aviation’s ability to act as a catalyst for sustainable development at the local, national, and global levels, and will consequently be vital to countries’ recovery from the broader impacts of the COVID-19 pandemic,” said Salvatore Sciacchitano, President of the International Civil Aviation Organization (ICAO) Council.
Using advanced big data analytics, ICAO forecasts that the surge in demand will be seen by the end of the first quarter. By year’s end, the agency predicts growth of about three per cent on 2019 figures.
UK pays EU £2.3bn to settle China import row (The Guardian)
The UK government has paid £2.3bn to the EU as part of a long-standing dispute over textiles and footwear imported into the UK from China.
“Whilst the UK has now left the European Union and this is a legacy matter from before our departure, the government is keen to resolve this long-running case once and for all and is committed to fulfilling its international obligations,” he told MPs.
The case dates back to 2017 when the EU’s anti-fraud office said British authorities had allowed criminals to evade customs duties by making false claims about clothes and shoes imported from China.
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Agri SA reiterates warning of food shortages, price spikes as loadshedding continues (Engineering News)
Industry body Agri SA has implored President Cyril Ramaphosa to address food security in his State of the Nation Address on February 9, given that the agricultural sector has lost more than R23-billion in the nine months ended September 30, 2021, as a result of loadshedding.
Agri SA has also submitted a letter to the National Disaster Management Centre that details the far-reaching implications of loadshedding for grains, livestock, poultry, fruit, vegetables, sugar and edible oils. These industries are central to the ability of South Africa to feed its people, the organisation emphasises.
Executive director Christo van der Rheede believes the only way to guarantee food security in South Africa is for government to announce immediate action to relieve the crippling burden of loadshedding on farmers, failing which South Africans can expect crop failures, higher food prices, shortages of certain food products and job losses in the near future.
SA addressing challenges increase mining investment: President Ramaphosa (SAnews)
Uganda, South Africa Business Summit 2023 (East African Business Week)
The Private Sector Foundation Uganda (PSFU) in partnership with Ministries of Foreign Affairs, Trade and Cooperatives, Privatisation and Investment etc. is organizing the Uganda – South Africa Trade, Tourism, and Investment Summit to take place on February 27th – 1st March 2023 in Pretoria, South Africa.
The summit will provide a platform for the Private sector, companies and businesses to create new markets and ways of how to facilitate doing business and identify existing and emerging business or investment opportunities in Uganda and South Africa.
According to the PSFU Chief Executive Officer, Mr. Stephen Asiimwe, South Africa is one of the fastest growing sources of Foreign Direct Investment for Uganda as the South Africa’s exports to Uganda. In 2010 alone, Uganda attracted FDI of up to US$ 848 million. We also intend to link up with the Ugandan diaspora in South Africa to create partnerships with them on the many opportunities they are engaged in.
Explain gaps in reports of China-Kenya trade (Business Daily)
There is an urgent need to address the large gap in the reports of the value of trade between Kenya and China, which has major implications on transparency, taxes and economic relations. Nairobi reported that it imported Sh377.5 billion from the Asian nation in the 10 months ended October 2022.Beijing on the other hand reported its exports to Kenya over the same period at Sh809.4 billion, leaving a Sh377.5 billion difference that has not been explained by the Kenya Revenue Authority.
This is arguably the largest discrepancy in Kenya’s international trade to come to light.
Names of duty-free maize importers remain unknown as window opens (Business Daily)
The Ministry of Agriculture has failed to gazette names of millers and traders who will be allowed to ship in maize as the window for duty-free imports opened on Tuesday. Agriculture Principal Secretary Harsama Kellow said they have scrutinised applicants and that the process of issuing the letters is currently going on. “We have scrutinised the names of those who have applied and we are still approving others and we shall be issuing the letters to those who have been approved soon,” said Mr Kellow.
Millers are now worried that the imports will be delayed because of the logistics involved in making imports, with the shipment taking at least 45 days to arrive in the country from the day when the order is placed.
IATA and Somalia sign aviation cooperation agreement (Engineering News)
The International Air Transport Association (IATA), which is the representative body of the global airline industry, and the government of the Federal Republic of Somalia signed a cooperation agreement on Monday. This would serve to formalise and deepen their cooperation, in order to strengthen aviation’s socioeconomic benefits to the country.
“Aviation is essential to the success of Somalia’s development plans,” affirmed Somali Transport and Civil Aviation Minister Fardowsa Osman Egal. “The Government of Somalia is committed to developing its air transport sector to help promote long-term social and economic growth in the country. And we will ensure that global best practices are at the core of development. This agreement will pave the way for closer cooperation on the priorities for aviation in the country.”
The agreement would also allow IATA to expand its activities in Somalia, in line with the association’s African aviation mission. That was to create an air transport sector that was safe, economical, efficient and sustainable, that would stimulate growth and so create jobs, as well as facilitating international trade and tourism.
EAC political confederation unattainable in 2024 — Kadaga (New Vision)
The First Deputy Prime Minister and Minister for EAC Affairs, Rebecca Kadaga, has stated that achieving a loose East African Community (EAC) political confederation by next year will be impossible. Partner states had set their aim at achieving a confederation by 2024 as they continued with rigorous internal processes to harmonize on a political federation in the future.
While addressing board members of the East African Business Council (EABC) at the Speke Resort Munyonyo Hotel in Kampala on Friday, Kadaga said a confederation will not be possible by next year due to some skeptical approaches among some partner states towards the integration agenda.
“We are at a stage of integration, which is critical, and I want to reiterate that integration is inevitable; it’s the future for this region.” “We can no longer continue small as we are each of us going to take on the rest of the world single-handedly,” she observed.
Summit calls for accelerated implementation of infrastructure projects in Africa (UNECA)
A two-day meeting to discuss financing for Africa’s infrastructure projects has ended in Dakar, Senegal, with calls for increased collaboration and resource mobilization, as well as accelerated implementation of regional infrastructure projects across the continent.
The event, titled “the Second Dakar Financing Summit for Africa’s Infrastructure,” sought to increase and secure the necessary funding to prepare projects of the Second Priority Action Plan of the Programme for Infrastructure Development in Africa (PIDA PAP 2), and to match project financing needs with existing sources of finance.
The main outcome of the summit was the “Dakar Declaration on Synergies of Action for Infrastructure Financing in Africa” in which AUDA-NEPAD, AfDB, ECA, and RECs are commended for their joint efforts to improve the implementation of regional infrastructure projects in Africa. It urges AUDA-NEPAD, AfDB, regional development banks, ECA, RECs, AFREXIMBANK and AfCFTA Secretariat to strengthen mutual cooperation in order to promote infrastructure for intra-African trade.
A highlight of the summit was the signing of an MoU between Afreximbank and AUDA-NEPAD on the creation of a facility to fund the preparation of PIDA projects. This is an important development given that many PIDA projects have stalled at the preparatory stage. The need for Africa Africa to take control of the implementation of its infrastructure projects was also highlighted.
Mining and the circular economy support each other (Engineering News)
Mining was essential if the world was to create a circular economic system, Finnish Geological Survey director-general Kimmo Tiilikainen has pointed out. He was addressing a Sustainable Mining Breakfast, jointly hosted in Cape Town by the Embassies of Denmark, Finland and Sweden, on Tuesday.
“The mining industry is necessary for the sustainable economy,” he affirmed. However, mining would have to take environmental and social issues into account in a way that industry had not done before. As the volume of mining increased, the bar for environmental and social standards would have to be raised.
“There is a huge need for critical minerals, and shortages may occur,” he highlighted. “We need to speed up exploration.” The development of new mines also needed to be accelerated. “There will be a hurry [sic] for new investments.” These will be necessary to meet decarbonisation targets.
“Investments in the circular economy can support sustainable mining in a remarkable way,” he assured. However, currently, the mining and processing of metals and minerals produced huge amounts of waste material. Future mine and processing plant designs had to be optimised to minimise the waste produced.
Report Says Nigeria Could Become Africa’s Topmost Oil Refiner In 2025 (Heritage Times)
As Nigeria, Africa’s largest population continues to grapple with shortage of petroleum products amidst import, a Pan-African investment research firm, Hawilti has predicted that the West African nation could become biggest oil refiner in the region by 2025.
In its recent report titled “Refineries watch Q4 2022” released on Monday, Hawilti’s report says Africa will witness significant transformations in its fuel supply security in 2023, adding that West Africa houses the largest refining capacity on the sub-continent, but only 23 per cent of it is currently operational.
It says the prospect of a new private refinery becoming operational in Nigeria could help redefine the nation’s local refining capacity.
Egypt’s Trade Minister, heads of exports councils discuss boosting exports (ZAWYA)
Minister of Trade and Industry Ahmed Samir met with export council’s heads of ready-made garments, spinning and weaving, furniture, medical industries, printing and packaging, and furniture sectors to discuss the councils’ work plans to develop Egyptian exports. The meeting also discussed the most prominent challenges facing exporters and ways to overcome them.
The minister said that this meeting comes within the series of meetings that the ministry started in January to identify the growth opportunities available to exporters during the current year compared to 2022.The series also aims to reach an agreement on the most important needs of the export sector to maintain and increase the achieved growth rates, especially in light of the great interest that the state attaches to the matter.
Moreover, the ministry will improve services provided by the ministry to enhance the competitiveness of Egyptian products and exports.
MAN: Manufacturers Facing Critical Time (This Day)
The Manufacturers Association of Nigeria (MAN), yesterday, declared that its members were passing through a critical time due to the prevailing petrol scarcity, cash crunch, shortage of foreign exchange and power supply in the country. The MAN also warned that the government should be deliberate in promoting Nigeria’s manufacturing sector because the operation of the African Continental Free Trade Area’s (AfCFTA) has the capacity to either expand the Nigeria economy for good or limit and jeopardise it.
“We are expecting that by the time the new government comes in on May 29, it will be necessary among other things to look into the manufacturing sector especially on issues around forex supply that set the tone on how we (manufacturers) really determine the prices of our products because currently we cannot even budget effectively.
“It also hinders the possibility of any investor to bring in foreign money to invest in Nigeria. And actually it frightens the existing manufacturers to engage and do the business effectively. So these costs from abstract infrastructure need to be addressed so that we can really be able to work ahead.
“Continentally, it is important to determine the rule of origin properly to avoid dumping, which will be very bad for manufacturers.
Manufacturing excellence key to doing business in modern times – PwC (Engineering News)
Professional services firm PwC reports that South Africa’s manufacturing industry has to keep evolving to remain competitive in the face of global competition through implementing what it calls ‘manufacturing excellence programmes’.
The firm notes that while there has been a longstanding battle between effectively producing products against demand and maintaining a sustainable cost base, the modern day challenge of agile manufacturing becoming more cumbersome to implement, remains.
However, the majority of the common challenges currently faced by manufacturing organisations can be addressed through the use of technology.
While digital concepts have a valuable role to play in manufacturing processes, PwC also states that manufacturing excellence programmes remain imperative.
Energy transition offers great opportunities to Africa, but constraints are significant (Engineering News)
The global transition to low- and zero-carbon energy sources was a once-in-a-generation opportunity for Africa, just as the original Industrial Revolution had been for the West, highlighted Bushveld Minerals CEO Fortune Mojepalo at the Investing in African Mining Indaba 2023 conference in Cape Town. He was participating in a panel discussion.
It had been estimated, he said, that it would be necessary to develop 400 new mines, worldwide, to supply the metals that would be needed for the energy transition and the production of electric vehicles. The metals required included cobalt, lithium and the platinum group metals. Africa led the world rankings in six or seven of the metals essential for the energy transition.
The question was: how was this to be unlocked? The junior mining sector had to be encouraged, he affirmed. Good clear regulation was needed, as was big data.
Moreover, the opportunity for Africa was not just limited to the supply of metals. When downstream development, or beneficiation, took place, the economic effect was massive. But how was the value chain for Africa to be maximised?
Partnerships are key to unlocking Africa’s vast potential: DP World Chairman (Emirates News Agency)
DP World’s Group Chairman and CEO, Sultan Ahmed Bin Sulayem, called for unlocking private sector infrastructure investments in Africa, to address the challenges faced by the continent’s development.
Speaking at the 2nd Dakar African Infrastructure Financing Summit in Senegal, he said that the cost of moving goods domestically around Africa is five times higher than in the US and urged for more partnerships to address the gap. “Investing in the continent’s trading infrastructure, as we have in Dakar, is central to transforming African economies.”
Bin Sulayem explained that improving trade across Africa can boost local exports, create employment and reduce pollution.
The ECOWAS Regional Competition Authority (ERCA) has convened a technical working-group meeting to review the draft Manuals of Procedure, Forms and Templates to create operational documents for the agency. The meeting which took place in Banjul from January 30 to February 3, 2023, brought together four (4) technical experts from the ERCA Consultative Competition Committee (CCC) and ERCA staff to review ERCA’s draft manual of procedures, forms, and templates before submission for regional validation by the CCC. The meeting of the working group provided an opportunity for the experts to review and edit the draft documents and make the necessary recommendations to improve the document and ensure it is in line with ERCA’s regulations and best practices.
The Chairperson of the Competition Consultative Committee, Ms. Boladale ADEYINKA of Com-petition Commission of the Federal Republic of Nigeria noted the importance of having com-prehensive Manuals of procedure that provides a framework and guide to ERCA in addressing competition issues in the ECOWAS Region. She expressed optimism on the technical expertise of the CCC members and other experts at the meeting and thanked them for their dedication and commitment to the work of ERCA.
Key African countries gain ground in 50-country emerging markets rankings (The Africa Logistics)
Several key African economies improved their performance in an annual ranking that compares the domestic and international logistics, business conditions, and digital readiness of the world’s 50 leading emerging markets. Kenya, Ghana and Tanzania improved their position from 2022 in the 14th annual Agility Emerging Markets Logistics Index, which ranks emerging markets countries by factors that make them attractive to logistics providers, freight forwarders, air and ocean carriers, distributors and investors.
Among countries in Sub-Saharan Africa, Nigeria had the best domestic logistics, 11th among the 50 countries. South Africa’s international logistics network performed best on the continent. Sub-Saharan Africa’s best business fundamentals were in Ghana. Kenya, which has taken steps to nurture digital startups, was Africa’s most digitally ready economy.
The 18th meeting of the Sectoral Council on Transport Communications and Meteorology (TCM) is currently underway at the Royal Palace Hotel in Bujumbura, Burundi. The sectors and sub-sectors that are involved in the TCM matters are roads, railways, maritime transport, telecommunications, ICT, postal services, civil aviation, airports and meteorology.
The Sectoral Council meeting is expected give directions on the convening of the 5th EAC Heads of State Retreat on Infrastructure Development and Financing, the premier event that brings together political and policy decision makers, technocrats, development partners and the private sector to discuss ways of unlocking the estimated 50 billion dollars annual funding gap for the region’s infrastructure development.
Climate change turning herders into traders (The Standard)
Small traders and micro businesses have in recent years drawn interest from authorities and even financial institutions. However, their counterparts in far-flung areas remain neglected and their growth is stunted. This is even as communities living in marginalised areas and borderlands continue to feel the impact of climate change which has made it difficult for traditional economic activities such as agro-pastoralism which needs to be boosted by trade. While a number of pastoralists consider themselves as traders, deepening their trade activities especially as their other sources of livelihood suffer because of weather patterns, they are limited by factors such as lack of financial inclusion and physical infrastructure that would enable them to thrive in this kind of trade.
More African Countries Are Taking Data Privacy and Protection Seriously (The Culture Custodian)
With nearly 600 million people across Africa using the internet today, African countries are increasingly recognising the need to legislate and invest in, data and privacy protection.
Botswana, South Africa, Kenya, Rwanda, Nigeria, Uganda, Togo and Ghana have been front-runners in legislating pro-data and privacy protection policies. Beyond efforts at the individual country’s levels, regional economic blocs have policies that safeguard data and privacy protection.
Despite the developments in legislation, Brandon Muller, Kaspersky tech expert and consultant African region, highlights the many areas African countries can improve on, especially in averting industrial cybersecurity.
Global B2B Cross-Border Payments Market Set to Reach $40 Trillion by 2024 (Fintech Singapore)
A new study from Juniper Research has found that the global spend on B2B cross-border payments is set to exceed US$40 trillion by the end of 2024, an increase from the current estimated figure of $37 trillion in 2022.
This represents a significant growth in cross-border payments being made between businesses worldwide. The study highlights the critical role that cross-border payments play in supporting the development of international trade and commerce and the need for efficient and secure payment methods in this sector.
One of the key drivers in the growth of cross-border payments is the increasing globalisation of businesses. As businesses expand their operations into new markets and regions, they need to be able to make and receive payments from other businesses in different countries.
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Proposed excise stamp rate hikes bad for Kenya’s manufacturing agenda (Business Daily)
The proposed Excise Duty (Excise Goods Management System) (Amendment) Regulations, 2023 seek to increase the fees of excise stamps for bottled water, juices and any other non-alcoholic drinks, cosmetics, alcoholic beverages, tobacco and nicotine products and export products subject to excise with effect from March 1.
From the onset, the position of the Kenya Association of Manufacturers (KAM) is that using excise stamps as a tool for fighting illicit trade is counterproductive.
From the baseline survey conducted by Anti-Counterfeit Authority in 2020, illicit trade rose from Sh726 billion in 2017 to Sh826 billion in 2018, despite the existence of excise duty measures.
Ghana: SMEs without certification could lose out on ACFTA benefits – Trade Ministry warns (Myjoyonline)
The Ministry of Trade and Industry is warning of the possibility of Small and Medium Scale Enterprises (SME) without Ghana Standards Authority’s certification losing out on the African Continental Free Trade Area deals.
A Ghana Standards Authority survey reveals fifty (50) percent of local manufacturers delay with certification renewal timelines while others fail to renew.
Director of Bilateral, Multilateral and Regional Integration at the Ministry of Trade, Mickson Opoku, meanwhile cautions defaulting businesses might not be able to compete favourably in the trade area.
Nigeria, Niger sign border frequency agreement (Radio Nigeria)
Nigeria and the Republic of Niger have signed a bilateral agreement for the coordination of frequency utilisation to ensure seamless deployment of services along their borders.
The agreement signing ceremony was one of the highlights of the two-day Digital Economy Regional Conference, hosted by the Nigerian government and facilitated by the Federal Ministry of Communications and Digital Economy.
Excerpts from the agreement indicates that, it will help in the effective coordination and sharing of frequencies and channels in the ‘buffer zone area’.
Egypt-Romania trade exchange reaches $1.1bln in 2022 (ZAWYA)
Trade exchange between Egypt and Romania has reached $1.1 billion in 2022, according to a cabinet statement published on February 4th. These remarks were made during a press conference by Egyptian Prime Minister Mostafa Madbouly and his Romanian counterpart.
The discussions focused on ways to reinforce bilateral economic relations as joint cooperation would increase the volume of trade between the two countries.
Nigeria, Bulgaria record 1,010 percent increase in trade volumes in 2022 — Ambassador (ZAWYA)
The Bulgarian Ambassador to Nigeria, Mr Yanko Yordanov at the weekend disclosed that a 1,010 percent increase in the trade volumes between Nigeria and Bulgaria for the year 2022.
He said this in Lagos, while addressing newsmen in a-day symposium organised by the United States Government Exchange Association Alumni in Nigeria, where he highlighted his achievements as as an ambassador and the efforts that are being made to foster the Bulgarian-Nigerian relationship.
He said: “Since I got here, we have doubled the trade volumes between Nigeria and Bulgaria. If you compare the statistics of 2022 to 2021, you’ll see a 1,010 per cent increase in the trade volumes, which I think it’s a significant thing and one of the outcomes of the Honorable Minister of Foreign Affairs of Nigeria’s visit to Bulgaria last year.”
Etihad Cargo, Astral Aviation sign MoU to boost Africa-UAE logistics (Engineering News)
The cargo and logistics division of Etihad Airways, Etihad Cargo, has signed a memorandum of understanding (MoU) with Astral Aviation to expand the partnership between the two parties and enhance the cooperation between the regions of Abu Dhabi and Nairobi, further growing Etihad Cargo’s reach into the African market.
This latest agreement builds on Astral Aviation’s expanding partnership with Abu Dhabi, which will see Astral Aviation operating more flights to the United Arab Emirates’ (UAE’s) capital, supported by Etihad Cargo.
Through the comprehensive MoU, Etihad Cargo’s customers will benefit from additional cargo capacity out of Nairobi through the introduction of additional services from Nairobi to Etihad Cargo’s hub in Abu Dhabi from April 1.
African Development Bank, Production Partner on New Podcast Presented by the World Trade Center in Washington, DC (African Business)
Africa-USA Now, a new weekly video podcast spotlights current events at the intersection of Africa and the United States. The 10-week series launches at a pivotal time following the historic US-Africa Summit and the renewed commitment to partnership between Africa and the US.
The current events talk show features African and American policymakers and experts examining issues around burgeoning trade and investment opportunities. The program is presented by the World Trade Center, Washington, DC (WTCDC), and is launched in partnership with the African Development Bank, Africa Investment Forum and AfricaGlobal Schaffer.
“This is an important program that will address roadblocks to engagement, highlight significant trade and investment opportunities, and hopefully change the narrative on Africa and the dynamic changes taking place on the continent,” said Akinwumi Adesina, President of the African Development Bank Group, which is sponsoring the program.
EU-India: new Trade and Technology Council to lead on digital transformation, green technologies and trade (European Commission)
Today, the EU and India have strengthened their relationship as strategic partners by setting up a new Trade and Technology Council (TTC). The new TTC will deepen strategic engagement on trade and technology between both partners. This follows the announcement by President of the European Commission Ursula von der Leyen and Prime Minister of India, Narendra Modi, on 25 April 2022 in New Delhi. It will be co-chaired on the EU side by Executive Vice-Presidents Margrethe Vestager and Valdis Dombrovskis, and on the Indian side by Subrahmanyam Jaishankar, Minister of External Affairs, Piyush Goyal, Minister of Commerce and Industry, and Ashwini Vaishnaw, Minister of Electronics and Information Technology.
In a rapidly changing geopolitical environment, the EU and India have a common interest in ensuring security, prosperity and sustainable development based on shared values. The TTC will provide the political steer and the necessary structure to coordinate approaches and advance technical work. To lay the groundwork, both sides have agreed to work on critical areas such as connectivity, green technologies and resilient supply chains.
China-Africa economic, trade digitalization service base established in Hunan (Xinhua)
The China-Africa economic and trade digitalization service base of Hunan Province was unveiled in Changsha, the provincial capital, on Monday.
The base mainly serves Chinese companies in Africa and provides related digital information services. It will also promote the innovative application of new business forms such as cross-border e-commerce, China-Africa economic and trade data statistical analysis, and other digital products related to telecommunications, Internet, software and information technology services.
The base can provide campsite communication support equipment services for enterprises in need and build cross-border interconnection routes for African branches of Chinese-funded enterprises. Furthermore, it can also provide services such as website construction in local languages to help high-quality economic and trade development between China and Africa.
U.S.-China trade likely set record in 2022 (Politico)
Commerce Department data to be released Tuesday is expected to show goods trade between the world’s two biggest economic superpowers surpassed the previous record of $658 billion set in 2018.
The tally for the first 11 months of 2022 was $640 billion, putting the record well within reach when the December numbers are added in tomorrow. U.S. exports to China could exceed the 2021 record of $151 billion, while U.S. imports from China could match or exceed the 2018 record of $538 billion.
Still, there are signs that the political turbulence of the last few years is having an impact on two-way commerce. Based on data for January through November, China accounted for just 13.1 percent of overall U.S. trade in 2022, the lowest level in at least a decade and down from a peak of 16.4 percent in 2017.
Free IOE&IT webinar on impact of Ukraine war on global trade to take place next week (Institute of Export & International Trade)
To mark the unfortunate milestone of one year having passed since the invasion began, the Institute of Export & International Trade (IOE&IT) is hosting a free webinar at 2pm on 14 February, assessing the impacts of the war on trade and advising businesses on how to navigate the uncertain new trade landscape.
The webinar will feature trade policy and sanctions specialists from the IOE&IT and government, as well as Professor Trevor Williams, a former chief economist at Lloyds Bank, a visiting professor at the University of Derby and co-founder of FXGuard.
You can sign up to the webinar for free here.
EU trade policy latest: green industrial plan, South America negotiations and migration push (Institute of Export & International Trade)
There’s more to EU trade policy than current wrangling over the Northern Ireland Protocol and Brexit.
Since the start of 2023, the trade bloc has launched a range of trade initiatives covering issues such as the environment, digital services and migration.
Here, the IOE&IT Daily Update rounds up the latest developments from the European trade policy world, including the green industrial plan, Asian agreements and progress on EU-South American trade talks.
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Top African Coal Port’s Snags Are No Match for European Demand (Bloomberg)
South Africa’s state-owned rail company Transnet last year delivered the smallest amount of coal in three decades from mines to the continent’s biggest export facility for the fuel at Richards Bay, but shipments to Europe surged.
The overall slump in deliveries was mainly caused by a labor strike and a train derailment, followed by violence that prolonged recovery efforts and interrupted service for weeks on the line connecting collieries in Mpumalanga province to Richards Bay Coal Terminal.
Despite lower volumes arriving at RBCT, where they’re loaded onto vessels, Europe’s demand for the dirtiest fossil fuel in the wake of Russia’s invasion of Ukraine drew more than 14.3 million tons of coal from the facility — an increase of more than 520% from the previous year.
Freight bottlenecks, geopolitical conflicts hampering mining sectors (SAnews)
Mineral Resources and Energy Minister, Gwede Mantashe, says the country has to urgently prioritise the resolution of challenges facing freight and railways operations if the mining industry is to capitalise on the current minerals boom. The Minister made the call while delivering the opening address at the 2023 Investing in Africa Mining Indaba in Cape Town on Monday. Addressing delegates, he said 2022 had been a grim year for the mining industry.
“International factors included soaring energy prices due to the ongoing geopolitical dynamics, whereas domestic factors included the ongoing power supply disruptions (load shedding) and the logistical bottlenecks on our railways and ports.” Mantashe said the soaring of global energy prices negatively impacted the industry’s operational costs.
SONA 2023 to reflect on progress made (SAnews)
President Cyril Ramaphosa is due to deliver the 2023 State of the Nation Address (SONA) before a joint sitting of the National Assembly and National Council of Provinces on Thursday.
The address will also reflect on successes made by the administration since the last SONA in 2022. Over this period, the sixth administration made headway in pressing areas that impact daily life.
November 2022 marked two years since President Ramaphosa announced the establishment of Operation Vulindlela to drive a far-reaching economic reform agenda for the country to shift its economic growth trajectory and enable investment and job creation.
Egypt and Nigeria have decided on some trade agreements (Business Insider Africa)
The procedure got underway in 2019 when the FCCPC and the ECA started talking about improving competition laws and policies between their respective organizations. The FCCPC and ECA signed the Memorandum of Understanding on January 31, 2023, at the headquarters of the Egyptian Competition Authority in Cairo, Egypt, considering that both nations are a part of the largest economies in Africa and the commonality of both agencies’ objectives and mandates. “In this regard, the FCCPC and ECA have solidified their engagements in a Memorandum of Understanding.” A statement by both parties reads in parts.
The statement further notes that the agreement recognizes critical issues that aim to advance both agencies’ engagements through coordinated research, capacity building, and information and experience sharing to ensure consumers and businesses receive the protection and advantages that come naturally with the increased economic growth this engagement fosters.
Nigeria in 2023: Bridging the productivity gap and building economic resilience (Brookings)
The last seven years (2015–2021) have been tough for Nigerians. During this period, GDP growth averaged 1.1 percent as the country experienced two economic recessions. Unemployment and underemployment rates increased to an all-time high of 56.1 percent in 2020, pushing 133 million Nigerians into multidimensional poverty, according to the latest data from the National Bureau of Statistics. Likewise, economic growth has not been inclusive, and Nigeria’s economy faced key challenges of lower productivity, and the weak expansion of sectors with high employment elasticity.
Another key feature of Nigeria’s economy in the last seven years has been the shift of economic activity towards agriculture and a slowdown of the manufacturing sector. As a share of GDP, agriculture expanded from 23 percent in 2015 to 26 percent in 2021, while manufacturing declined from 9.5 percent to 9 percent respectively. During this period, non-oil exports as a share of non-oil GDP averaged 1.3 percent while manufactured goods as a share of total exports remained low at 5.2 percent in 2021. Part of the problem facing the economy is the neglect of the manufacturing sector. Essentially, Nigeria is not producing enough, for both local consumption and export. The consequences of having a weak manufacturing base for a country with such a large population are evident in its foreign exchange shortages, limited number of jobs created to accommodate workforce entrants, and an import bill that can hardly be met (nor sustained) by current export earnings.
At the top of the productivity ladder is the tradable services sector, which has the potential to improve incomes and raise overall productivity. The challenge with this sector, however, is its inability to accommodate labor in large numbers. Nevertheless, the sector is important, given Nigeria’s young population who are increasingly driving technological revolution across various sectors on the African continent. To leverage the full potential of this sector, the government will need to design and implement national skills programs aimed at upskilling young Nigerians, to ensure many more embrace digital skills and capabilities.
At the middle of the productivity ladder sits manufacturing. The sector has a much higher productivity level than agriculture and can accommodate, in large numbers, the kind of labor that is abundant in the country.
Tanzania is speeding up its efforts to establish stronger trade ties within Africa (Business Insider Africa)
The Tanzanian minister of Investment and Trade, Dr. Ashatu Kijaji, disclosed this information in an exclusive interview with The Citizen, a Tanzanian news agency. “We have yet to identify the products. We have only recently begun discussions with members of the business community in order for them to tell us which products they want to trade under the AfCFTA arrangement,” the minister stated.
She reaffirmed her belief that starting in July of this year, Tanzania will permit the commerce of 10 items. The first engagement meeting between the public and private sectors took place last week, and the minister promised that subsequent follow-up meetings between both sectors would ensue.
Alongside these seven other countries, Ghana, Kenya, Cameroon, Rwanda, Egypt, Mauritius, and Tunisia, Tanzania was selected as one of the countries to pilot “the AfCFTA Initiative on Guided Trade Trial.” This initiative was launched in 2022, and about 100 traders from Ghana, Cameroon, Kenya, Egypt, Mauritius, and Rwanda are currently trading under the AfCFTA program whose trading started officially on January 1 last year. This information is courtesy of The Citizen which got its hands on official government documents.
Mining countries being helped to build critical mineral supply chains (Engineering News)
The United States of America wants to support mineral producing countries to build enabling environments for investment throughout the critical minerals supply chain and not just focusing on extraction alone. This was stated by US Under Secretary of State for economic growth, energy and environment Jose W Fernandez in his address to the Investing in African Mining Indaba
Refining, battery production and recycling, in addition to simply extraction, is the approach being adopted by the Mineral Security Partnership (MSP) of which the US is part – along with Australia, Canada, Finland, France, Germany, Japan, Korea, Sweden, the UK, the European Union and now also Italy, the latest country to join.
Demand for critical minerals, which are essential for clean energy and other technologies, is expected to expand significantly in the coming decades.
MSP members view transparent, open, predictable, secure, and sustainable supply chains for critical minerals as being vital to the successful deployment of these technologies at the speed and scale necessary to combat climate change effectively.
Expensive skies: EAC cited for high levies at its airports (The East African)
South Sudan’s Juba International Airport has the heaviest costs for travellers and transporters, showing just how pricing can be a barrier to movement in the East African region. A study on air transport ranks the Juba airport as the fourth most expensive in Africa in terms of passenger charges, just below Niamey, Monrovia and Bissau airports. The study, released in January and titled ‘‘Air Transport Services Liberalisation in the East African Community, Focus on Drivers and Regulations’’, was carried out by the East African Business Council (EABC), TradeMark Africa (TMA) and the government of the Netherlands.
EABC chief executive John Kalisa attributes the costs to the lack of well-developed infrastructure and qualified personnel to control the airspace.
“The major factors constraining the growth of air transport in EAC especially in South Sudan, is poor infrastructure and insecurity. The airport lacks cold rooms for storage of cargo making, among other facilities,” said Kalisa. The cost of transporting cargo by air is high in Burundi compared to other EAC states as the country does not have its own cargo aircraft, making access to markets expensive and limited.
Irony of $30b mobilised for agribusiness as 282m Africans starve (The East African)
The war in Ukraine has roundly been blamed for the food shortages being witnessed in the world, and especially Africa. Energy, fertiliser and food costs have risen by between 40 percent and 300 percent since Russia invaded Ukraine in February 2022.According to data from the African Development Bank, Africa imports more than 100 million tonnes of food annually, valued at about $75 billion, and the continent now finds itself in a lurch, as 30 million tonnes of the imports come from the warring Russia and Ukraine.
Some of the most affected African countries are Egypt and Sudan. Egypt is the largest wheat importer in the world, and in 2022 it bought $8 billion worth of the grain.
The ever-increasing prices continue to exacerbate an already strained food supply chain, causing more hunger pangs across the globe. Food insecurity on the continent is further worsened by climate change, which is costing the continent $7 billion-$15 billion annually.
Wide-ranging reforms will aid Africa’s sustainable recovery, says ECA’s Antonio Pedro (UNECA)
African countries should institute wide ranging fiscal reforms to expedite sustainable recovery from multiple crises which have hindered industrialization and economic diversification, the Economic Commission for Africa’s (ECA) Acting Executive Secretary, Antonio Pedro, has urged. “Ensuring a sustainable recovery, which protects populations and economies from the shocks of future pandemics and other crises, will require a range of reforms and initiatives at both the national and international levels,” said Mr. Pedro in his remarks at the 2023 Coordination Segment of the Economic and Social Council (ECOSOC) on 2 February in New York City.
“For African countries, appropriate policy choices through fiscal reforms as well as building coherent and effective frameworks for mobilizing domestic revenue are needed,” Mr. Pedro said, calling for a reprioritisation of public expenditure to invest in more growth-enhancing projects.
World Bank roots for Africa trade deal (The Star)
Free trade among African countries poses great potential in drawing more foreign direct investments and increasing benefits, according to World Bank. To attain this, it says trade agreements like the African Continental Free Trade Agreement (AfCFTA) need to be fast-tracked since trade between African borders still faces restrictive constrains which limit growth.
“According to our new research on trade integration, it is noted that borders between African countries rank among the most restrictive in the world, one reason why there is relatively little intra-continental trade and investment,” the lender says.
The global lender maintains that trade and investment have been the primary drivers of growth for developing economies, lifting hundreds of people out of poverty, hence the need for governments to focus on easing intra-trade across the continent.
I want to highlight a disconnect between your huge investment and infrastructure needs and the too little too late inflow of capital. One of the biggest challenges is in Sub-Saharan Africa. It is home to 60 percent of the world’s extreme poor and has a high population growth rate, but the current investment rate is not enough even to maintain capital stocks, much less increase them. We need a holistic approach to expanding infrastructure through private capital facilitation, which includes both mobilization and working at the upstream level to improve the environment for private capital enabling.
African youth entrepreneurs launch continental youth business council (The Point)
The AfYBC was officially launched at the East African Community (EAC) Headquarters in Arusha, Tanzania, on the sidelines of the 2022 YouLead Summit during its 6th edition. The YouLead summit is one of Africa’s most diverse youth events.
While launching the AfYBC, African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals (ETTIM), Amb. Albert Muchanga, urged young African entrepreneurs to use innovation to their advantage and leverage partnerships to create smart solutions for the continent’s most pressing development challenges.
“Today, you will also be launching the Afrikan Youth Business Council – a continental apex body for youth-led private sector entities, institutions and associations in Africa, advocating for a youth-friendly business policy environment, aimed at making AfCFTA Promises to African youth reality.
I understand and acknowledge the challenging macroeconomic environment that Africa and the world find themselves in at the moment. This should be the ultimate goal of the African Youth Business Council.
‘Act decisively before it is too late’, Guterres warns countries, laying out his priorities for 2023 (UN News)
Addressing the General Assembly in New York, he appealed for urgent action now to achieve peace, economic rights and development, climate action, respect for diversity, and inclusive societies – both today and for generations to come.
The international community has an obligation to act, he continued, as “this is not a time for tinkering” but, rather, “a time for transformation.”
With poverty and hunger rising, developing countries drowning in debt, and social safety nets frayed, among other signs, the Secretary-General called for “radical transformation” of the global financial architecture. This will require new commitment and resolve, including to address the appalling inequalities and injustices exposed by the COVID-19 pandemic and the response to the global crisis.
New determination will also be needed to ensure developing countries have a greater voice in global financial institutions, and that vulnerable nations, including middle-income countries, can have access to debt relief and restructuring. Multilateral Development Banks in particular, must change their business model and leverage their funds to attract more private capital that can be invested to help developing countries achieve the Sustainable Development Goals (SDGs) before the 2030 deadline.
“Without fundamental reforms, the richest countries and individuals will continue to pile up wealth, leaving crumbs for the communities and countries of the Global South,” he cautioned.
Debt relief under the heavily indebted poor countries initiative HIPC (IMF)
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Coal industry can innovate to contribute to energy transition (SAnews)
Mineral Resources and Energy Deputy Minister, Dr Nobuhle Nkabane, has called on the coal industry to find innovative ways for coal to contribute to the transition from a high to a low carbon economy. Nkabane was speaking at the 18th annual Southern African Coal Conference in Cape Town.
“There are other technologies such as mixing fossils with green sources such as ammonia. Give us concrete scientific solutions in defence of the future of coal so that our political stances are not seen as a void of facts,” Nkabane told delegates..
The Deputy Minister said while renewable energy will continue to be procured by government, coal still remains key for Eskom’s baseload.
Govt to reopen Kenya-Somalia border in Mandera (Capital News)
Plans for the reopening of the Kenya-Somalia border in Mandera are nearing conclusion, with the renovation of the Customs Border Control Point set to begin soon. This follows a series of high-level consultations between the two countries with the intent to advance new spheres of shared interests, particularly cross-border trade and regional security.
Interior Cabinet Secretary Kithure Kindiki has intimated that the move is one of the strategic interventions that will be deployed to curb illicit cross-border trade, including smuggling of goods, illegal firearms, counterfeits, and drugs.
“Our border with Somalia has been closed for about ten years,” the CS said of Mandera Border Control Point, which ceased activity in 2012. “The governments of Kenya and Somalia have agreed to designate a border point to facilitate legal movement of people and goods for the benefit of the people of Mandera and Bula Hawa,” he added.
Group Urges Nigerian Government To Adopt ‘Maputo Protocol’, Protect Women, Girls’ Rights For Development (Sahara Reports)
A non-profit organisation (BAOBAB) for Women’s Human Rights, has called for the protection and promotion of the rights of women and girls across Nigeria and Africa for rapid development on the continent.
The group urged the implementation of “Maputo protocol”, an international human rights instrument established by the African Union and that took effect in 2005. According to Adidu-Lawal, the ‘Maputo protocol’ was an African legal instrument that protects the lives of women. Speaking further, she said that the instrument looked at culture, religion and practice peculiar to Africans to build the capacity of women.
Bangladesh, South Africa discuss ways to boost trade, investment (The Daily Star)
State Minister for Foreign Affairs Md Shahriar Alam has said Bangladesh and South Africa have common socio-economic development objectives and there are huge potentials to boost trade and investment. He observed that visa waiver agreement for diplomatic and official passport holders and agreement on avoidance of double taxation between Bangladesh and South Africa will facilitate contacts and increase trade and investment between the two countries.
The state minister had bilateral talks with Deputy Foreign Minister of South Africa Candith Mashego Dlamini in Pretoria on February 3 and discussed areas of cooperation. Referring to his meeting with the Business Unity South Africa which took place on Thursday, Shahriar Alam said the organisation has shown interest in working with Bangladeshi chambers.
He expressed hope that with mutual efforts, bilateral trade between Bangladesh and South Africa may be enhanced to one billion dollars.
Angola harnesses the potential of its creative industries (UNCTAD)
Angola has more than 450 firms operating in the cultural and creative field with an annual turnover of more than $662 million, according to the country’s National Institute of Statistics. But these figures don’t cover informal activities, which have high significance in Angola’s cultural and creative industries.
To help the country harness its cultural and creative industries, UNCTAD conducted a workshop in the capital Luanda from 30 January to 1 February for public and private stakeholders to discuss how to improve economic activities in these industries to provide greater opportunities for entrepreneurs and creators, particularly young people.
“Angola’s cultural and creative industries can generate income for artists and creators, families and the state, if the sector is developed further,” said Domingas Monte, Director of the country’s National Institute of Cultural and Creative Industries.
EU threatens to blacklist Kenya over grand corruption (The East African)
The European Union has threatened to blacklist Kenya over corruption and money laundering, revisiting an old problem Nairobi has struggled to contain.EU Ambassador to Kenya Henriette Geiger said Kenya’s reluctance to curb corruption and money laundering could scare off investors. She told a media briefing over the upcoming European Union-Kenya Business Forum with the Kenya Private Sector Alliance on Thursday, February 2 that Nairobi may also face restrictions.
“For us, we think that to fight corruption is in the best interest of Kenya because maybe this is the single most determinant of investment. And also, Kenya is on the watchlist for money laundering,” said Ms Geiger.”If Kenya is not making an effort, it will be blacklisted and that has a lot of very negative consequences. The most important one is that investors are shying away.”
IFC Partners with Nigeria’s Union Bank to Support Trade, SMEs (IFC)
To boost access to finance for smaller businesses in Nigeria and to support increased trade, IFC today announced a partnership with Union Bank of Nigeria Plc to help the bank expand lending to hundreds of businesses operating in critical sectors in the country, including food, healthcare, manufacturing, and services. IFC's $30 million loan will allow Union Bank to increase trade financing and working capital lending to Nigerian businesses, including those whose cashflows have been strained by recent disruptions in global and local markets.
Spain, Morocco Say Feuding Days Are Over as Europe Courts Africa (Bloomberg)
The Spanish and Moroccan governments vowed to deepen diplomatic and trade ties, drawing a line under years of bitter disputes that threatened to undermine security and energy interests.
Concluding his two-day visit to the Moroccan capital, Spanish Prime Minister Pedro Sanchez announced more than 20 agreements, including an 800 million-euro ($880 million) credit line to bolster investment in a country he describes as a “gateway into Africa.”
EBID Announces $130m Facility To Bridge W/Africa’s Trade Financing Gap (Leadership)
The ECOWAS Bank for Investment and Development (EBID) has announced a dual-currency trade finance credit line totaling around $130million, marking the first time it has secured funding support from the African Development Bank (AfDB). The funds will be used primarily to enhance food security and strengthen agricultural value chains across West Africa, the AfDB said in an announcement issued this week.
The AfDB is providing $50million and €50million to the three-and-a-half-year facility, while the People’s Bank of China is providing a further US$30million through the Africa Growing Together Fund – a facility sponsored by the Chinese central bank but administered by the AfDB.
The AfDB’s head of trade finance, Lamin Drammeh, said, working with the EBID should help improve access to trade finance in the Ecowas region, which encompasses 15 West African countries.
The trade finance gap in Africa – measured as the gap between demand and supply for financing facilities across the continent – is believed to total around US$81bn per year, with SMEs and domestic companies facing the greatest difficulty in accessing support, the AfDB said.
Central African States Fail to Honor Timber Export Ban (VOA)
Officials say most member states in the Central African Economic and Monetary Community, CEMAC, have failed to honor a ban on raw timber exports that was enacted last year to conserve forests and create jobs by locally processing wood.
The six member countries of the Central African bloc agreed to ban raw timber exports starting in January 2022. The ban is aimed partially at combating climate change by protecting forests from excessive logging. However, an online meeting of CEMAC forestry and finance ministers Thursday found that only Gabon and the Republic of Congo have suspended the timber exports to China and other Asian countries. Cameroon, the Central African Republic, Chad and Equatorial Guinea have not.
Cameroon’s finance minister, Luis Paul Motaze, said Cameroon needs the tax money from the exports, which earned the country $127 million last year. He said a study conducted in 2022 by CEMAC shows if central African states stop raw timber exports, they will lose one percent of their gross domestic product. That is not healthy for a community that wants to develop, Motaze said, adding that local industries do not have the equipment for transforming timber into a variety of finished products.
The deadline for implementing the ban was initially pushed back to January 2023 to give the CEMAC countries more time to comply. Motaze suggested the bloc push back the deadline again to 2025 so countries have more time to invest in wood processing equipment and in training workers.
Will a global circular economy help or hurt Africa? (Brookings)
In Davos, many of the assembling elites had circular economy on their mind and lips, and the program was replete with its implications. “Circular economy” is a concept described by its supporters as the biggest economic opportunity since the industrial revolution. They peg its scale at $1 trillion by 2025 and $4.5 trillion by 2030.
As both an economic means and an end, circularity is about “designing waste out of the system.” According to its proponents, by reusing resources, repurposing end-of-lifecycle items, recycling garbage, refurbishing the broken, and rewiring the torn, we can build a more sustainable world reset from the current course of depleting nature at rates unprecedented in millions of years.
It is estimated that if circularity gathers steam, global consumption of new materials could be reduced by 32 percent in 15 years and by 53 percent in 30 years. On the other hand, business as usual will see the human population increase by 20 percent by 2050 but waste expand by a far more staggering 70 percent.
Considering Africa’s status as one of the most marginalized continents, circularity is expected to have massive positive impacts.
AfCFTA: Ambitions of free trade must move beyond talk (The Africa Report)
For two days in the gorges of Ghana’s Akuapem mountains, government officials from across Africa, business leaders and trade policy experts discussed and agreed on terms for accelerating the trade objectives of the AfCFTA at the inaugural Africa Prosperity Dialogues.
The secretary-general of AfCFTA, Wamkele Mene, says progress has been steady but recent geopolitical events make it an urgent imperative for hastened actions. “Africa’s challenges are opportunities… It should be a matter of concern to us as Africans that a country of 43 million people was feeding a continent of 1.3 billion people so when we are in a geopolitical context that we are in today and we are not able to import grains from this country, we suffer a food insecurity crisis,” he said. Mene added: “The private sector creates jobs, not governments, not the AfCFTA secretariat. Collectively it is our job to establish the requisite investment climate so that African businesses can take advantage.”
Okonjo-Iweala: Africa lags behind in global digital export (The Nation)
The Director-General of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala has said that the African continent currently lags behind in global export of digitally delivered services. Okonjo-Iweala noted that the continent counted for less than 1 percent for global export of digitally delivered services export in 2021.
The director-general made this known virtually at the First National Digital Economy Conference, organised by the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) with the theme “Promoting A Vibrant Digital Economy; A Catalyst For Economic Growth”.
While noting that the young population are are digitally sarvy, she stated that Nigeria and Africa have a chance to grow through digitalisation. She said: “We must do more to develop the tech sector, this goes beyond digital infrastructure. There is a lot beyond regulation, the government can do more to facilitate the growth of the tech industry.
UN Economic agency to help accelerate industrialisation efforts by African states (The Standard)
The UN Economic Commission for Africa (UNECA) says it is streamlining its operations to support member states accelerate industrialization and economic diversification which are key to Africa’s development. ECA Acting Executive Secretary, Antonio Pedro, said the ECA is working on delivering on its mandate to foster regional integration and promote international cooperation for Africa’s development.
“Our countries need adequate financing, sufficient energy, the right infrastructure mix, agricultural and food systems that are resilient to external shocks and climate mitigation measures that reduce the impact of climate change,” Mr Pedro said.
Downward slide in global food prices continues: FAO (UN News)
Price indices for vegetable oils, dairy and sugar drove the January decline, the UN food agency said, issuing two new reports on food production expectations. The FAO food price index fell 17.9 per cent below its all-time peak, reached in March 2022 following Russia’s full-scale invasion of Ukraine. The downward pricing trend was helped in part by a pivotal agreement signed in July to unblock Ukraine grain exports amid the ongoing war.
Tracking monthly changes in the global prices of commonly traded food commodities, the latest index averaged 131.2 points in January, falling 0.8 per cent since December. FAO reported small price decreases on its latest meat and sugar indices.
The world lacks an effective global system to deal with debt (UNCTAD)
There is an alarming tendency among the international community to regard debts in the developing world as sustainable because they can, after some sacrifice, be paid off.
The pandemic, cost of living crisis and rising interest rates have brought them to a point where they can only pay their debts by way of austerity or foregone investment in the sustainable development goals (SDGs). Their debts are sustainable in that they can be repaid, but unsustainable in every other way.
Furthermore, this full-blown development crisis with debt distress at its core also threatens a new lost decade for much of the world economy.
In 2021, developing countries paid $400bn in debt service, more than twice the amount they received in official development aid. Meanwhile, their international reserves declined by over $600bn last year, almost three times what they received in emergency support through the IMF Special Drawing Rights allocation.
Scaling up plastic substitutes is key to tackling pollution (UNCTAD)
The world traded about 369 million tonnes of plastics in 2021 – enough to fill over 18 million trucks. The queue would wrap around the globe 13 times. Since less than 10% of all plastics produced have been recycled, most of the products in those trucks will end up littering our streets and flooding our seas. But nature abounds in sustainable materials like bamboo, sand, banana plants and algae that could be used to make eco-friendly versions of the straws, shopping bags, bottles, food wrappers and other plastic products we consume daily.
According to research by PEW, plastic substitutes could cut global plastic waste by around 17% by 2040 – about 63 million tonnes less, or 3.5 million fewer trucks in the queue. “Besides the benefits to the planet, the shift offers economic opportunities,” said Henrique Pacini, an UNCTAD economist working on trade and environment issues. “But countries and companies have to work together and across borders to scale up production and reduce trade barriers,” Mr. Pacini said.
Members address development dimension of WTO reform agenda (WTO)
Following the opening session on 2 February, members had the opportunity to brainstorm in four smaller breakout groups. Members were asked how they view development in the WTO, how the opportunities in the WTO system can help members achieve their development objectives, and what challenges need to be addressed to ensure that all members are in the position to achieve these objectives.
“When developing countries prosper, this creates a huge opportunity for all, developing and developed, because you have more meaningful trade partnerships, and more meaningful strategic cooperation,” Director-General Ngozi Okonjo-Iweala told the members. “Let’s take this issue and let’s turn it into a positive that can help us move forward in this organization.”
The Prolongation of BRICS: Impact on International World Order and Global Economy (Modern Diplomacy)
BRIC, coined by an economist Jim O’Neil in 2001 as an acronym for the four countries like Brazil, Russia, India and China. South Africa joined in 2010 and this organization turned into BRICS. The prime goal of BRICS was to the formation of the diplomatic and economic assistance framework, and the challenges to western influence in the global economic order. The Western cordially welcomed BRICS with the earnestness. The BRICS, five major emerging economies, together represent about 26% of the world’s geographic area, inhabitant of 2.88 Billion people which is about 42% of the world’s population and accounted for a quarter of the global GDP. The enlargement of BRICS was talked on June, 2022 at the groups summit which took place in Beijing. The 2023 summit will take place in South Africa.
If Saudi Arabia, Egypt, Iran, Argentina, Turkey become the member of BRICS, it will enormous impact on the World order and global economy.
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Anti-dumping duties lapse on French fry imports (Engineering News)
The anti-dumping tariffs on French fries placed on three European countries by the International Trade Administration Commission of South Africa (Itac) have lapsed, which will bring relief to consumers, says frozen food importer Hume International.
Itac placed anti-dumping tariffs as high as 181.05% on Germany, 104.52% on the Netherlands, and 23.06% on Belgium in July for a period of sixth months.
“The news comes as a small, but much needed, reprieve for the food industry during a period marred by continued global supply chain disruptions, rising animal feed costs, record high fuel prices impacting on transportation costs and increased loadshedding, which may lead to shortages of certain local food products,” the importer says.
Farmers seek new deal as loadshedding threatens industry and food security (Engineering News)
The impact of loadshedding on the agriculture sector is evident at all levels of operation, including logistics and cold-chain management, which necessitates urgent responses from farmers and government, lest food security and export sales are put at risk.
A report by Nova Economics estimates that agriculture lost about 4.38% of its contribution to gross domestic product in 2018/19 and that the cost of loadshedding for agriculture amounts to R4.01 per kWh in terms of 2020 values.
In the nine months ended September 30, 2022, the agriculture sector reportedly lost R23-billion, owing to crop failure and a decrease in productivity because of loadshedding.
Loadshedding’s impact is ubiquitous, from irrigation, the conveyer belt movement of produce or livestock products, and alarm systems for security to keep livestock contained to cold storage facilities at farms and at ports, as well as railway lines, industry body Agri SA executive director Christo van der Rheede tells Engineering News & Mining Weekly.
Sugar millers locked out of duty free imports window (Business Daily)
Sugar millers have been locked out of the multi-billion-shilling duty-free sugar imports window. The move by the Sugar Directorate is based on the 2017 occurrence where millers abandoned buying and processing sugarcane from farmers after they were allowed to bring in the commodity outside of the Common Market for Eastern and Southern Africa (Comesa) without paying duty.
The move subjected farmers to huge losses as sugarcane that was ready for harvesting was left on farms for long as millers concentrated on repackaging and selling imported sugar, which the regulator says is way cheaper when compared with milling.
“We have received a number of applications from millers who want to import sugar but we have made a deliberate decision to stop them because they will focus more on repackaging and selling what they have imported other than milling cane from the local farmers,” said Willis Audi, head of the directorate.
“In 2017, the repercussions of having allowed millers to import sugar were heavy on farmers and we don’t want to repeat that,” he said.
Kenya: Ruto reverses ban on Ugandan agricultural produce (The Africa Report)
The meeting between Kuria and Museveni was held to discuss ways on improving trade relations between the two neighbours. Former President Uhuru Kenyatta’s administration slapped the ban on the products in 2021.
“As we move towards the Tripartite Free Trade Agreement and the merger of EAC, COMESA and SADC, Kenya and Uganda will walk that journey together and ultimately into AfCFTA,” Kuria said after meeting Museveni, referring to the African Continental Free Trade Agreement.
Museveni thanked his counterpart Ruto for reversing the ban, which had led to a trade dispute and reduced the volume of transactions between the two countries, even though historically Uganda has been Kenya’s biggest trade partner in the region.
According to statistics published by Kenya’s Central Bank in September, Kenya’s exports to Uganda dropped by 8.5% to KSh46.77bn ($386.3m) during the first half of 2022 compared to a similar period in 2021.
Climate Action is Key to the Republic of Congo’s Economic Prosperity (World Bank(
The World Bank issued the Ninth Economic Update for the Republic of Congo: Climate Change Impacts, Adaptation and Opportunities.
As a commodity exporter, the Republic of Congo is currently benefiting from higher oil prices, induced largely by the war in Ukraine. Export receipts have increased significantly, bolstering government revenues. However, households and businesses are being negatively impacted by rising food prices, supply chain disruptions and fuel shortages. In addition, Congo’s subsidy bill surged in 2022, especially oil and electricity subsidies, as the Government maintains administrative controls on the prices of a wide array of consumer necessities (e.g., gasoline, electricity tariffs, and several food staples). These effects of the war in Ukraine add to existing socio-economic challenges and to the effects of the COVID-19 pandemic.
Congo’s economy returned to growth in 2022, following a contraction of 2.2% in 2021. Growth in 2022 is estimated at 1.9% driven by the non-oil sector, which expanded thanks to the removal of COVID-19 restrictions and partial clearance of government arrears to domestic firms. The non-oil sector is set to continue to expand in 2023-24, and the resumption of investments by oil companies will spur growth in the oil sector. Overall growth is projected to firm up to 3.7% in 2023 and 4.5% in 2024. However, there are several downside risks to the outlook, including uncertainties related to oil production, a protracted war in Ukraine and sustained high food prices, as well as adverse weather conditions which could impact agricultural production.
Angola, DRC and Zambia move towards jointly managing key trade corridor (The North Africa Post)
Angola, Zambia and Democratic Republic of Congo (DRC) have agreed to establish a new agency that will oversee the development and joint management of a trade corridor to and from the Atlantic Ocean port of Lobito, which could mean lost business for South African ports.
The Lobito Corridor Management Institution will facilitate trade from Zambia and DRC over Angola’s 1,344km Benguela Railway, the three countries said at a recent ceremony in the Angolan port city. If the project succeeds, it may transform how the region’s resources are shipped, as it would serve as a key route to move metals used to make electric vehicles and wind turbines from inland mines to port, and cut transport times from weeks to days. DRC and Zambia are key suppliers of copper and cobalt, which are currently shipped via road to ports in South Africa and eastern Africa.
The agency will “ensure the availability of the Lobito Corridor to importers and exporters from the inland states of the DRC and Zambia as an efficient and economical supplement to other trade routes,” Ricardo Viegas D’Abreu, Angola’s transport minister, said in a speech.
A New Strategy to Support Economic and Social Transformation in Côte d’Ivoire (World Bank)
The World Bank Group today presented a new Country Partnership Framework (CPF) 2023-2027 with Côte d’Ivoire that focuses on improving human capital, reducing disparities and building resilience, and creating private sector jobs. This engagement, which involved consultations with the private sector, the authorities, civil society, and the other development partners, aims to support a more inclusive and sustainable economic and social transformation, as articulated in Vision 2030 and the 2021–2025 National Development Plan.
“Over the past decade, significant investments and reforms have enabled Côte d’Ivoire to make major strides in improving infrastructure—particularly with respect to access to energy, driving strong growth, and combating poverty,” said Coralie Gevers, World Bank Country Director for Côte d’Ivoire, Benin, Guinea, and Togo.
This new Country Partnership Framework is also consistent with the World Bank Group’s regional strategy for Western and Central Africa, namely with regard to rebuilding trust between citizens and the State in order to create a new social contract, removing bottlenecks that prevent businesses from creating more and better jobs, strengthening human capital and empowering women so that all boys and girls can reach their full potential, and building climate resilience to help countries adapt to and mitigate climate shocks by strengthening the resilience of cities and rural areas.
Ghana, EU Launch Online Agribusiness Platform To Increase Trade (Heritage Times)
An online platform that will directly link Ghanaian Agribusinesses to counterparts in the European Union, (EU) market has been launched in Accra. The Ghana-EU Agribusiness Platform is a partnership of the European Chamber of Commerce in Ghana (EuroCham Ghana) and the Chamber of Agribusiness Ghana (CAG) with funding from the EU. It forms part of the EU’s broader vision of establishing the AU-EU Agri-Food Platform that will catalyse sustainable and inclusive investments in African agriculture.
Speaking in an interview at the launch, Treasurer of EuroCham Ghana, Mr. Andrea Ghai, said businesses that would subscribe to the platform would benefit from different information about market opportunities.
Can African trade integration be a game changer? (World Bank Blog)
Worldwide, trade and investment have been primary drivers of growth for developing economies, lifting hundreds of millions of people out of poverty. But Africa’s fractured internal market has prevented it from benefiting fully from this trend. The African Continental Free Trade Agreement (AfCFTA) aims to be a game changer. For the first time, it would create a single, continent-wide market that unites 54 countries with a combined population of 1.3 billion and GDP of $3.4 trillion. It would reduce barriers to trade and investment and boost competition, raising the attractiveness of Africa for regional value chains and to investors.
World Bank research suggests that the agreement has the potential to bring significant economic and social benefits in the form of faster economic growth, higher incomes, and less poverty. It would help Africa diversify and industrialize its economy and reduce its reliance on exports of a small number of commodities – such as copper, oil, and coffee. Women and skilled workers would be among the biggest beneficiaries, albeit with variations across countries.
But much depends on whether the agreement’s most ambitious goals are successfully negotiated and then carried out in full. Effectively implementing the commitments of the AfCFTA on the ground should become a priority for members. This will require political commitment and leadership.
Tanzania lawmakers outline way forward for EAC (The Citizen)
Lawmakers from Tanzania took the regional Assembly sitting by storm here yesterday, outlining their preferred priorities for the East African Community (EAC). While some defended the country’s commitment to the union, others spoke of what should be done to empower the youth. James Ole Millya said contrary to some perceptions, Tanzania was doing all its best to promote regional integration.
“EAC is for all people. We feel we are part and parcel of its programmes because at the end of the day we will all benefit,” he said.
At Second African Infrastructure Financing Summit, $160 billion worth of projects on table (AfDB)
The 2nd Dakar Financing summit For Africa’s Infrastructure Development has opened in the Senegalese capital with sixty-nine infrastructure projects worth $160 billion on showcase. African heads of government, the African Development Bank, development finance institutions, and institutional investors will gather to draw the modalities for pushing the projects to completion by 2030. The African Union Development Agency and the Government of Senegal are co-hosting the summit.
The 69 projects fall under the Programme for Infrastructure Development in Africa (PIDA), a blueprint for infrastructure development to increase Africa’s competitiveness and economic integration. PIDA’s Priority Action Plan 2, was adopted by the AU Assembly of Heads of State and Government in 2021.
On Thursday, February 2, African Development Bank Group Vice President for Regional Development, Integration and Service Delivery Marie-Laure Akin-Olugbade, will participate in a roundtable discussion involving President Macky Sall of Senegal, Rwandan President Paul Kagame, and Egypt’s Prime Minister Mostafa Madbouly. The discussion, titled Financing Africa’s Infrastructure Priorities under PIDA PAP 2, will include Afreximbank President and Chairman, Prof. Benedict Oramah.
Investment facilitation talks intensify to conclude draft agreement in first half of 2023 (WTO)
WTO members participating in the negotiations on investment facilitation for development (IFD) agreed on an intensive schedule of meetings over the coming months, with the objective of finalizing the negotiating text by mid-2023. Talks are based on the Draft IFD Agreement reached in December 2022. At a meeting on 1 February, delegations stressed the need for a swift process to conclude the text and its review, following guidelines proposed by the co-coordinators, Ambassador Sofía Boza of Chile and Ambassador Jung Sung Park of the Republic of Korea.
Members discuss data on fishing subsidies and ocean resources for second wave negotiations (WTO)
WTO members on 31 January held a second knowledge building workshop to inform the second wave of negotiations on fisheries subsidies, focusing on data concerning the state of marine resources and on fisheries subsidies. The workshop was intended to enhance members’ ability to reach an agreed outcome by the 13th Ministerial Conference, said Deputy Director-General Angela Ellard, who also called on more members to submit their formal acceptances of the Agreement on Fisheries Subsidies.
Exports of intermediate goods post sustained growth in second quarter of 2022 (WTO)
World exports of intermediate goods (IGs) grew 4% year-on-year in the second quarter of 2022 to US$ 2.5 trillion, driven by the increase in shipments of intermediate food products. The overall growth, while slower than the increase recorded in the same period a year ago, continues to indicate stable activity in global supply chains.
Revive and restore wetlands, home to 40 per cent of all biodiversity (UN News)
On World Wetlands Day, observed this Thursday, the United Nations is calling for urgent action to revive and restore these ecosystems, which are disappearing three times faster than forests. Wetlands cover roughly six per cent of the Earth’s land surface and are vital for human health, food supply, tourism and jobs.
More than a billion people worldwide depend on them for their livelihoods, while their shallow waters and abundant plant life support everything from insects to ducks to moose. Wetlands also play a crucial role in both achieving sustainable development and in the fight against climate change.
Leticia Carvalho, head of the agency’s Marine and Freshwater Branch, urged governments to end policies and subsidies that incentivize deforestation and wetlands degradation, and urgently focus on restoration. “At the same time, we must guide and drive investments to protect priority ecosystems, such as peatlands, and encourage the private sector to commit to deforestation and peatland-drainage-free supply chains,” she added.
Fake medicines kill almost 500,000 sub-Saharan Africans a year: UNODC report (UN News)
A lack of access to healthcare and medicines has been fuelling a host of opportunists aimed at filling the gaps, the report Trafficking in Medical Products in the Sahel shows. But, this supply and an imbalance in demand, has triggered deadly results.
In sub-Saharan Africa, as many as 267,000 deaths per year are linked to falsified and substandard antimalarial medicines, the transnational organized crime threat assessment found.
The African Union established the African Medicines Regulatory Harmonization initiative in 2009 to improve access to safe, affordable medicine. The effort is part of its Framework on Pharmaceutical Manufacturing Plan for Africa. In addition, all Sahel countries but Mauritania have ratified a treaty for the establishment of the African Medicines Agency.
Recognizing these achievements, the UNODC report offered recommendations. Among them was to introduce or revise legislation to prevent all related offences, such as smuggling, money-laundering and corruption.
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Citrus growers call for urgent WTO intervention to ensure oranges can be exported to EU (Engineering News)
Industry organisation the Citrus Growers Association of South Africa (CGA) has called on global body the World Trade Organisation (WTO) to urgently establish a panel to adjudicate on the False Coddling Moth (FCM) regime governing the importation of South African oranges to the European Union (EU).
CGA has written to Trade, Industry and Competition Minister Ebrahim Patel to call for the establishment of the WTO panel, because, if the issue is not resolved before the 2023 export season starts, growers could face hundreds of millions of rands in losses, putting the future sustainability of the entire industry at risk, says CGA CEO Justin Chadwick.
The call follows after a stalemate was reached between the South African government and the EU after the Department of Trade, Industry and Competition (DTIC) lodged a dispute at the WTO in July. Consultations since then have not made any progress.
Namra collects N$18,44 billion through customs (The Namibian)
NAMRA collected about N$18,44 billion in customs and excise duties during the 2021/2022 financial year.This is made up of N$3,6 billion from operations and N$14,7 billion from the Southern Africa Customs Union (Sacu). This was said by Namra commissioner Sam Shivute when he addressed the International Customs Day celebrations at Oshikango yesterday.
All customs officials contribute to pillar one, objective one of Namra, which is to optimise revenue collection through improved compliance, Shivute said. “As the essential employees at the borders, our customs officers are responsible for facilitating legitimate international trade, as well as collecting taxes and ensuring the safety and security of the country. “They are the unsung heroes of Namibia,” he said.
Morocco's Industrial Exports Reach MAD 360 Billion in 2022 (Minister) (MAP)
Replying to an oral question at the House of Councillors on "The outcome of the 2014-2020 Industrial Acceleration Plan", Mezzour recalled that the volume of industrial exports had not exceeded 160 billion dirhams in 2013, before the Plan was launched, highlighting a progression of about 200 billion dirhams in 9 years.
This Plan has achieved a "very positive" outcome by exceeding its goal of creating 500,000 jobs, said the Minister, adding that this scheme has, in addition, to create integrated industrial ecosystems, support competitiveness, strengthen the confidence of Moroccan and foreign investors in the Moroccan industry and enhance the Kingdom's attractiveness as a destination for industrial investment.
In response to another question on "Strengthening trade with African countries," Mezzour said that the volume of trade with African states would reach more than 65 billion dirhams in 2022, noting that these exchanges have more than quadrupled during the period 2001-2021, from 10 billion dirhams to 46 billion dirhams in 2021.
‘Stronger institutions key to mitigating uncertainties, inappropriate policy choices’ (The Guardian Nigeria)
An economist, Bismarck Rewane has stressed the need to strengthen the nation’s institutions and accelerate implementation of developmental programmes to enable the country to record meaningful growth this year.
Rewane, while addressing participants at the Nigerian-British Chamber of Commerce (NBCC) 2023 Macroeconomic Outlook held in Lagos, said that weak institutions pose a significant drag on the nation’s economic growth, noting that building stronger institutions in Nigeria would help mitigate uncertainties supported by appropriate policy choices that would engender rapid development across sectors.
Digital Banking in Nigeria is on the rise in 2023 (The Guardian Nigeria)
Like e-commerce, digital banking has exploded globally since the pandemic. So much so that experts project digital banking users to reach over 3.6 billion globally by 2024.
Nigeria was recently named Africa’s digital payments leader, and the country’s banking sector is also the most digitized in the continent. According to a 2022 press release, Nigeria recorded 3.7 billion real-time payments in 2021, earning the sixth spot among countries with the biggest real-time payments markets. This would not have been possible without Nigeria’s advanced financial technology structure and the support of the public and private sectors—which continues to strengthen their collaboration for 2023 and beyond.
With New Deep Sea Port, Nigeria’s Focus Turns to Better Road, Rail Connections (VOA)
Nigerian authorities have hailed the launch of a deepwater seaport in Lagos they say will create 300,000 jobs and reduce shipping bottlenecks. While the new port is expected to reduce losses due to congestion, shipping industry experts say Nigeria's poor roads and rail connections to ports also must be improved. The launch by President Mohammadu Buhari during his two-day visit this week to Lagos signaled his government's effort to grow Nigeria's economy through infrastructural development.
The 1.5-billion-dollar, Chinese-built Lekki Deep Sea Port sits on 90 hectares of land in the Lagos Free Trade Zone -- the biggest port by size in West Africa.
Authorities say ships docking at the port could be up to four times the size of vessels at the state's Tin Can and Apapa ports. They expect it will ease delays and congestion at ports and increase earnings by up to $360 billion in coming years.
ECA affirms support for Ethiopia’s trade policy agenda (UNECA)
The Economic Commission for Africa - a think tank with specialist expertise in African and international trade policy - has recommitted to helping Ethiopia’s trade policy agenda that aims to foster industrialization and sustained economic growth. Although Ethiopia remained outside the regional and global trading regimes for a long time, this is now changing. Not only has Ethiopia ratified the Agreement Establishing the African Continental Free Trade Area (AfCFTA), it is also negotiating its accession to the World Trade Organisation (WTO).
“The political resolve to be part of these regional and global trade regimes is clearly there, but it has not been matched by the technical capacity to translate this political will to concrete outcome,” ECA Director, Regional Integration and Trade Division, Mr. Stephen Karingi, said at a Roundtable on Multi-partner Support on Trade Policy to Ethiopia organized on the 24th of January by the British Embassy in Addis Ababa in collaboration with ECA.
Rising number of EAC bloc members now a concern (The Citizen)
Speakers at a special session of the regional Assembly called for more elaborate plans before admission of new members to the bloc is made. It was argued that the EAC in operation today was modelled on the topology of three original states; Tanzania, Uganda and Kenya. “There was no critical planning for expansion,” said Kenneth Bagamuhunda, the former EAC director general of Customs and Trade.
He told a special sitting of the East African Legislative Assembly (Eala) that there should not be any haste for admitting new members. This, he said, will enable regional leaders to avoid admitting countries that have “no or weak compatibility with EAC.” Mr Bagamuhunda, who retired last year after serving the organisation for 18 years, argued that there should be a clear mechanism for expansion.
Ease of China travel ban a welcome relief for East African tourism (The East African)
China’s decision to simultaneously lower restrictions for Covid-19 and resume regular international travel is being seen as a possible silver lining in East Africa’s quest to revamp its tourism industry. Traditionally reliant on the West and each other, East African countries were specifically hurt during the Covid-19 pandemic as travel restrictions slowed down visits. The pandemic also hurt the region’s desire to expand tourism markets beyond the traditional sources, and China had been one of the identified new market.
Beijing announced it will be permitting overseas group tours beginning February 6, selecting Kenya for a trial phase.
In the East African Community, Kenya, Uganda and Rwanda already offer a single tourism visa, which would allow the Chinese visitors to tour these countries without additional immigration requirements.
IGAD Says Regional Integration Path to Prosperity (ENA)
The Intergovernmental Authority on Development (IGAD), Executive Secretary Workneh Gebeyehu said regional integration is the surest path to prosperity, according to the Ministry of Foreign Affairs. In a speech the Executive Secretary delivered at the 3rd State of the IGAD Region, today in Mombasa, Kenya, appreciated the abundant political will and commitment of the IGAD region to resolve conflicts and disputes through peaceful negotiation and dialogue.
For the IGAD region, the surest path to peace is to deliver progress and prosperity through regional integration and unity, he said.
COMESA withdrawal has not affected TZ, DRC trade relations (Daily News)
EXISTING trade barriers between Tanzania and the Democratic Republic of Congo (DRC) have no relations with the country’s withdrawal of its membership from the Common Market for Eastern and Southern Africa (COMESA).
Deputy Minister for Foreign Affairs and East African Cooperation, Ambassador Mbarouk Nassor Mbarouk informed the National Assembly on Tuesday that various customs challenges between Tanzania and other countries have continued to acquire solutions day after day.
He was responding to a question posed by Momba Legislator, Ms Condester Sichwale (CCM), who wanted to know the country’s plan of reinstating its membership in COMESA, taking into account the challenges facing Tanzanian traders who want to grasp market opportunities in other countries, citing an example of the Congolese one.
The deputy minister indicated that before withdrawing from its membership, the country was certified there would not be any adverse effects from its decision.
Maritime sector can propel Africa’s economic development – Ayorkor Botchwey (Ghana News Agency)
Madam Shirley Ayorkor Botchwey, the Minister of Foreign Affairs and Regional Integration, says the maritime sector has a great potential to propel Africa’s economic growth and development. She said the importance of developing Africa’s maritime sector could not be overemphasised as it was a key driver of economic growth, requiring maritime organisations to devise appropriate strategies to make it viable.
“We are aware of the enormous contribution of the maritime industry to our economies, especially as the most cost-effective way of transporting large amounts of goods over long distances,” the Minister said when she addressed the 17th Extraordinary Session of the General Assembly of the Maritime Organisation of West and Central Africa (MOWCA).
Madam Ayorkor Botchwey therefore appealed to Member States to ensure that MOWCA continued to contribute positively to the growth of the industry, saying despite the strides made in the sub-region, more efforts were required to ensure that Africa’s Maritime Industry was at par with those of developed nations.
Dakar 2 Summit: Partnership to deliver technologies to farmers to feed Africa – says Adesina (AfDB)
Africa’s push for food sovereignty and resilience depends on investments and partnerships, African Development Bank Group president Akinwumi Adesina said on Thursday at the Dakar 2 Food Summit a food summit in Senegal. Speaking during a panel discussion on Building Multilateral partnership and financing support, Dr Adesina outlined how the bank was using technology to spur agricultural productivity in various African countries.
“Today we have the technologies to feed Africa; We need to put them into the hands of the farmers. The technologies are working and we have to deliver them at scale,” Adesina told the panel, moderated by Daouda Sembene, CEO of Africatalyst, a global development advisory firm.
Adesina highlighted the Technologies for African Agricultural Transformation (TAAT), which he said had significantly increased wheat yields in Ethiopia and Sudan. The Bank is rolling out Special Agro-Industrial Processing Zones which are designed to transform Africa’s agricultural sector.
Food and Agriculture Organization (FAO) and African Risk Capacity advocate for women's engagement in climate action and disaster risk reduction (African Business)
The Food and Agriculture Organization of the United Nations (FAO) has joined efforts with the African Risk Capacity (ARC) Group to integrate gender dimensions in climate action and disaster risk management and reduction in Sub-Saharan Africa.A new agreement signed today consolidates the ongoing partnership between FAO and ARC which has already demonstrated solid results in awareness-raising and data-generating efforts. The outlined areas of cooperation for the five-year agreement include advocacy and awareness-building, technical mutual support, and resource mobilization.
"This collaboration holds the promise of hope for millions of African women who struggle with social and economic discrimination in climate action and related decision-making processes. While much remains to be done to achieve gender equality in the sector, our combined efforts will be a leap into a better future for the most vulnerable groups in our region," said Abebe Haile-Gabriel, FAO Assistant Director-General and Regional Representative for Africa.
Global growth will be weak in 2023 before rebounding next year: IMF (UN News)
The IMF estimates growth at 2.9 per cent this year, falling from 3.4 per cent in 2022 and reaching 3.1 per cent in 2024. This represents a slight adjustment, 0.2 percentage points, from its World Economic Outlook (WEO) forecast in October.
“Growth will remain weak by historical standards, as the fight against inflation and Russia’s war in Ukraine weigh on activity,” said Pierre-Olivier Gourinchas, the Fund’s Chief Economist, in projections published on Monday. He added that this outlook “could represent a turning point, with growth bottoming out and inflation declining.”
Economic growth proved surprisingly resilient in the third quarter of 2022, the IMF said.
Latest Global Findex Data Chart 10 Years of Progress in Financial Inclusion (World Bank)
At a recent Policy Research Talk, World Bank Lead Economist Leora Klapper presented key findings from the Global Findex 2021—a nationally representative survey of adults that has taken place roughly every three years since 2011 and quantifies financial account ownership and usage in economies around the world. Initially delayed by the outbreak of the COVID-19 pandemic, the Global Findex 2021 captured data from more than 128,000 adults in 123 countries—bringing the global total of survey participants to more than half a million adults since 2011.
In the aggregate, the Global Findex 2021 shows much cause for celebration among financial inclusion advocates. Since the first Global Findex survey in 2011, the share of adults worldwide with a financial account rose from 51 percent to 76 percent. In developing economies, account ownership
The G20 brings the world’s major economies accounting for more than 80 percent of world GDP and 75 percent of global trade to an international forum. While the world is still dealing with the nightmares of the pandemic, it is confronted with geopolitical havoc. And it is at this juncture that India has assumed the G20 presidency. For the first time in the history of G20, the troika is with the developing world—Indonesia, India, and Brazil. The troika has an opportunity to build a strong and lasting agency for the developing world. How the Indian presidency handles the economic impact of both these crises along with managing the strangled cords of relationships across borders will be quite crucial. India in its presidency has the responsibility to lead the world to economic recovery which is just and equitable. To that end, this paper aims to understand India’s priorities as a G20 president with respect to trade and correcting supply chains.
Renewed Engagement Across All Sectors Crucial to Realizing Sustainable Development Goals, Speakers Tell Economic and Social Council Partnership Forum (United Nations)
Renewed broad-based engagement, reinvigorated political commitment and revitalized partnership across all sectors of society are needed to recover from the COVID-19 pandemic and realize the 2030 Agenda for Sustainable Development, speakers told the Economic and Social Council today at its annual Partnership Forum.
Through unprecedented, bold global partnership, the international community must radically raise its ambitions, reverse extreme poverty, relieve debt burdens and render its harmonized support to people and communities at risk of being left behind, she stressed. For their part, Governments must not only ensure the active participation of all stakeholders, but also leverage their knowledge and resources to truly foster transformative, game-changing partnerships. With the half-way point of the 2030 Agenda only seven months away, the Partnership Forum provides the first opportunity to rally all partners; hear all voices and views; and put the world back on track for people, planet and peace, she pointed out.
Amina Mohammed, Deputy Secretary-General of the United Nations, in a pre-recorded message, also underscored that 2023 is a pivotal year for the 2030 Agenda, urging the international community to wake up to the current existential moment. While all must rise up to this historic occasion and the opportunity presented by energy, food, digital and social transitions, success can only be possible if everyone works together and if key partners demonstrate the necessary leadership, ambition and action, she emphasized.
Speaking for the African Group, the representative of Senegal noted that Africa will have the world’s largest and most youthful workforce by 2050. Deliberate policy strategies, as well as inclusive, transparent and accountable multi-stakeholder partnerships, are needed, he stressed.
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Trade Statistics released for December 2022 | South African Revenue Service
The South African Revenue Service (SARS) today releases trade statistics for December 2022 recording a preliminary trade balance surplus of R5.43 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN). The year-to-date (01 January to 31 December 2022) preliminary trade balance surplus of R193.28 billion is a deterioration from the R431.74 billion trade balance surplus for the comparable period in 2021. Exports increased by 4.6% year-on-year whilst imports increased by 25.1% over the same period.
South Africa well on way to unlocking incredible base metals potential – Orion (Engineering News)
Emerging production hubs in the Northern Cape are opening the way for South Africa to be a producer of future-facing ‘green’ metals to support the global energy transformation and to help mitigate against climate change. The two emerging production hubs are the Prieska Copper-Zinc Mine and the Okiep Copper Project.
Both are the outcome of the vision of the Sydney- and Johannesburg-listed Orion Minerals, which is now well on its way to achieving its goal of unlocking what it describes as incredible base metals potential in the Northern Cape.
Following the securing of a funding package to progress pre-development at Prieska Copper-Zinc and the completion of permitting and early stage funding for Okiep Copper, stakeholders are on standby for the imminent transition to mine development and production.
Boosting Agric Exports for Increased Revenue Generation (This Day)
According to the National Bureau of Statistics (NBS), Nigeria exported agricultural goods worth over N84.21 billion in the third quarter of 2022 representing a 40.6 per cent decline as against N141.77 billion generated in Q2 2022, but marks a 6 per cent increase compared to N79.41 billion recorded in the corresponding period of 2021.
Also in 2022, Nigeria imported agricultural goods worth N512.91 billion in the third quarter of 2022, marking a 10.4 per cent increase compared to N464.4 billion recorded in the previous quarter and a 6.4 per cent increase compared to N482.2 billion in the corresponding period of 2021.
Nigeria’s capacity to export agro produce is also being hindered by the inability to produce enough to meet its food needs before considering export. Experts in the non-oil sector have blamed the problems encountered by operators in the sector ranging from inadequate and decaying infrastructures, financing constraints, inefficient implementation of export incentives and support programmes, over regulation of the non-oil export sector, underdeveloped regional and sub-regional markets, policy instability, capital flight marketing and pricing problems. They argued that the small-scale farmer has poor market arrangement for his farm produce due to largely poor infrastructure, poor communication network and low access to logistic and inputs support. These surmountable challenges continue to question the federal government’s seriousness about diversifying its economic revenue base away from hydrocarbon resources.
Govt unveils plans to accede the establishment of a green growth institute (Capital Business)
The Government of Kenya has unveiled plans to accede to the establishment of a Global Green Growth Institute (GGGI) that will support green investments in the country. The GGGI, established in 2012, is a treaty-based international, intergovernmental organization whose vision is a low-carbon, resilient world of inclusive and sustainable growth by supporting members in the transformation of their economies to a green growth economic model.
The Treasury in its rationale report for Kenya’s accession to the GGGI notes that key areas the country can tap into in terms of green investments are waste, solar energy, sustainable transport, green buildings and industry, forest (sustainable) landscapes, and gender and inclusive development.
Pathways to Maintain Egypt’s Attractiveness to Foreign Direct Investment (EgyptToday)
Egypt has been working towards the localization of many industries and turning into a manufacturing hub that would supply to Africa and the region, leveraging its unique location. That is why it has been eager for attracting foreign direct investment (FDI), which may not just bring in money but also new technology. That is in addition to its most important functions, which are creating employment opportunities and contributing to the economic growth of the country. However, global crises are disrupting the progress achieved so far so solutions have to be devised.
EAC Enterprises Pushes for Aligned SMES Policies (KT Press)
Small and Medium Enterprises (SMEs) have called for a coherence in regional policies to enable a desired growth and contribution in creating jobs and incomes in East Africa Community(EAC). The call was made this Monday January 30, 2023 by EAC youth and women entrepreneurs who are holding a two-day workshop in Kigali to discuss daunting challenges faced in the SMES sector in the region despite having an East Africa Youth Charter, and the East Africa SME Portal.
John Bosco Kalisa the Executive Director of the East African Business Council (EABC) said that since the establishment of the EAC youth charter and portal, nothing has been done to establish a unifying policy on SMEs. “There is a need for national SMEs policies to be aligned and Governments to offer special incentives to accelerate SME development and empowerment to do business and trade effectively,” Kalisa said.
Despite SMES making up to 90% of businesses, employing 60% with a GDP of $300billion in EAC, Kalisa said that the current status of grading SMEs in the region is not uniform in each member state and each has its own standards of measuring what qualifies as an SMES.
The Sustainable Energy Fund for Africa (SEFA) of the African Development Bank Group will provide a $1 million technical assistance grant to the Green Mobility Facility for Africa (GMFA). GMFA provides technical assistance and investment capital to accelerate and expand private sector investments in sustainable transport solutions in seven countries: Kenya, Morocco, Nigeria, Rwanda, Senegal, Sierra Leone, and South Africa.
African unions demand strong labour provisions in AfCFTA (IndustriALL)
This conference focused on African continental free trade area, industrialisation and the decent work agenda. This event was part of IndustriALL’s continuous campaign for Africa industrialization.
Phase I of negotiations, which focuses on trade in goods and services and dispute settlement were completed. While Phase II negotiations on investment, competition and protecting intellectual property are expected to be ratified in February. Phase III negotiations will look at e-commerce, including digital trade, women and youth.
n response to union’s concerns, Willie Shumba, a senior expert, and advisor for customs, said one of the objectives of the AfCFTA is to:”achieve a comprehensive and mutually beneficial trade agreement among the Member States of the African Union.” He urged trade unions to engage the governments on the labour provisions.
Africa and the global LNG crunch: Balancing energy security, development, and decarbonization (Atlantic Council)
The December 2022 US-Africa Leaders Summit hosted by President Biden in Washington highlighted the emerging role of Africa in global affairs, including in the competition with China and Russia. In his address to the Summit, President Biden endorsed the proposal for the African Union to join the G20 and pledged $55 billion in financing and investment over three years. This ascendant role was also evident at the November COP27 meeting in Egypt, where African countries enjoyed a much more active and forceful presence. Even though they are marginal contributors to global emissions (3.8 percent of carbon emissions) and world trade (3 percent of exports), Africa has experienced severe drought conditions as well as negative economic and social impacts from high energy, food, and commodity prices over the past year. An IMF report concludes that Sub-Saharan Africa is “the region of the world most vulnerable to climate change.” And Ghana’s representatives were leaders of calls by the G77 for loss and damage support, a facility for which was agreed to in principle at the last moment in the final COP27 statement.
Energy development and investment was one of the many important topics addressed in the Africa Leaders Summit, which took place in the context of the continuing war in Ukraine, high energy and commodity prices, and a serious debt problem in many countries of the region. As was the case in the first Africa Summit eight years ago, the US government emphasized renewable energy development and improved energy access, noting the over $1 billion provided thus far under the Biden Administration by the US Development Finance Corporation, US Agency for International Development, and other US government agencies for African projects in these areas.
Although African leaders are embracing the clean energy transition and the region has enormous, diverse renewable energy resources, they are also arguing that they must be able to develop their fossil energy resources to meet their economic development needs and provide access to modern energy for their populations.
Top U.S., Chinese and Russian officials tour Africa as global charm offensive gathers pace (CNBC)
Russian Foreign Minister Sergei Lavrov, new Chinese Foreign Minister Qin Gang and U.S. Treasury Secretary Janet Yellen have all embarked on African tours within the past month. Yellen met with South African officials including President Cyril Ramaphosa last week, just days after the country’s Foreign Minister Naledi Pandor stood alongside Lavrov and vowed to strengthen bilateral relations between Pretoria and Moscow. Yellen’s three-country African tour, which also included stops in Senegal and Zambia, was presented as an effort to build trade and investment ties with the continent, accompanied by discussions about sustainable energy and food security initiatives and debt relief.
Yellen noted last week that Africa would “shape the future of the global economy,” signaling the U.S. motivation to re-engage with the continent of 1.4 billion people, but she also said Friday that she had discussed adherence to Russian sanctions in each of the three countries visited.
In the backdrop of Yellen’s trip is Washington’s concern about its waning influence on a continent that has increasingly pivoted toward bilateral relations with global powers that do not exert pressure to adopt certain geopolitical positions. As such, China has massively expanded its economic presence on the continent in recent years, while Russia has been able to build military and diplomatic influence in certain regions, particularly those beset by civil conflict or insurgency.
Russia, South Africa Studying Alternatives For Trade In National Currencies - Diplomat (UrduPoint)
Russia and South Africa are working on creating alternative mechanisms in order to trade in national currencies, and plan to fully restart bilateral trade by the end of 2023, Oleg Ozerov, Russian ambassador-at-large and the head of the Russia-Africa partnership forum, said on Wednesday.
“We already know for sure that our cooperation (with Africa) will be carried out without the US dollar. However, other prospects are opening up - this is primarily cooperation in national currencies,” Ozerov said at the Valdai Discussion Club.
“The creation of a common currency for the BRICS countries is a long-term process and apparently not a fast one. We need quick solutions that would allow us to restart trade with South Africa right away, create joint projects and lend money,” Ozerov said.
Least-developed countries discuss trade priorities ahead of UN Conference on LDCs (WTO)
Over 100 capital-based officials from more than 40 least-developed countries (LDCs) took part in two stocktaking consultations on the trade aspects of the Doha Programme of Action for LDCs at meetings held in January in Addis Ababa, Ethiopia, and Siem Reap, Cambodia. Deputy Director-General Xiangchen Zhang said in his opening remarks: “Trade has been one of the forces for achieving the ambitions set out in the Doha Programme of Action for LDCs. It is our collective responsibility to make sure the Programme can offer lasting benefits to people in LDCs.”
“Coordinated and concerted measures are needed to enable LDCs to better access international trade and global value chains. LDCs can derive significant benefit from a multilateral trading system under the WTO,” said Rabab Fatima, UN Under-Secretary General and High Representative of the United Nations Office of the High Representative for the Least- Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS).
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Intervention urgent to resolve rail, port problems, says Business Leadership South Africa (Engineering News)
Urgent intervention is required to resolve the problems of South Africa’s freight rail system and ports, says Business Leadership South Africa (BLSA) CEO Busi Mavuso, who in this week’s BLSA newsletter describes the coal export slump through Richards Bay Coal Terminal (RBCT) as startling. “The real economic damage to the economy is immeasurable… it’s an appalling situation and one which BLSA is working hard to rectify,” writes Mavuso.
As reported by Mining Weekly on Friday, coal exports processed through RBCT last year nosedived to 50.35-million tons, the lowest since 1993, at a time of very high demand, soaring coal prices and an RBCT export capacity of 91-million tons.
Minerals Council South Africa chief economist Henk Langenhoven calculates that the bulk of the opportunity loss lies with inefficiencies on rail and in the ports.
The gap between what South Africa’s coal mining companies could produce and what they could export last year represents a loss of at least R80-billion, The Economist of London calculates, quoting Stellenbosh University’s Jan Havenga, who adds that the total hit to South African firms from lost exports and the extra costs of going by road will amount to 6% of 2022’s gross domestic product – some R400-billion.
Transnet approaches market for lease of container corridor (Engineering News)
Ports and rail operator Transnet, as part of its partnerships strategy, has decided to engage the market to invest in and grow Transnet Freight Rail’s (TFR’s) containerised freight business, which services the country’s manufacturing sector. To this end, Transnet will issue a request for qualifications (RFQ) to the market to identify parties interested in entering into an operating lease with TFR for the operation and maintenance of the container corridor (the line between Johannesburg and Durban) for a period of 20 years.
The container corridor rail mainline is a fully electrified double-tracked rail line running from Booth, in KwaZulu-Natal, to Union, in Gauteng. While the mainline is 670 km in route length, the double line and various major marshalling yards and enabling rail lines takes the total track length of the corridor to 1 621 km.
EU to invest R5.3bn in SA’s Just and Green Recovery (IOL)
The European Union (EU) will invest €280 million (R5.3 billion) in South Africa’s Just and Green Recovery, it was announced at the official launch of the Team Europe Initiative in Pretoria on Friday.
“As Team Europe, the EU and its member states will invest more than €280 million in grants in South Africa, including €87.75 million from the EU budget, to support policy reforms on green recovery, unlock green investments and build a knowledge-based transition in the framework of the Just and Green Recovery Team Europe Initiative for South Africa launched today (Friday) in Pretoria as part of Global Gateway,” the EU delegation said in a statement.
The EU said the Just and Green Recovery Team Europe Initiative would support South Africa in achieving its national goal to tackle the country’s pressing socio-economic challenges through policy dialogue, facilitating investment, including for public infrastructure and to unlock a sustainable, biodiversity friendly and circular economy and combat climate change.
The more the merrier, says Miano as EAC vets Somalia’s bid to join the bloc (The East African)
Kenya’s Cabinet Secretary for East African Community, Arid and Semi-Arid Lands and Regional Development Rebecca Miano says a bigger East African Community spells opportunity for the region as long as the members are ready to deal with the attendant challenges. Miano says the current jitters around expanding the EAC are misplaced.
If you look at the African Union, the original dream of regional integration is to have a united Africa. Admitting more members in the East African Community is the right thing to do,” she told The EastAfrican in an interview on Thursday.
“Lessons from partner states who have been there before should lead the way. We must mature from the old problems or disputes. Kenya, Uganda and Tanzania, the pioneers, should sort out their outstanding problems to smooth the way for newcomers,” she said. “We think this will make it attractive to new member states. We must lay to rest old problems, enhance communication and leverage technology.”
East African Community inches towards financial integration (African Business)
In December, the East African Legislative Assembly (EALA) passed a bill establishing the East African Financial Services Commission (EAFSC), one of the key steps on the road to achieving regional monetary union. The EAFSC will work to harmonise financial services regulation, including in non-banking financial industries such as insurance, pensions, capital markets and microfinance, while promoting regional integration in the sector.
EALA speaker Martin Ngoga said: “This is one of the legacy bills this House has passed. It’s a bill that touches directly on a pillar of our integration. Therefore, we hope that the remaining step to assent by the Heads of State will not be delayed.”
Progress on regional financial and economic integration, as well as the harmonisation of banking regulations, has been slow since the EAC heads of state agreed to achieve monetary union by 2024, including the introduction of a single currency, when signing the relevant protocol in November 2013.The introduction of a single currency would have profound implications for businesses and banks across the region by reducing transaction costs and cutting banks’ currency trading revenue.
In December, an EAC report into the timetable for the process recommended pushing the deadline back from 2024 to 2031 because all member states were behind schedule, including on implementing the required protocols and achieving the macroeconomic convergence criteria.
ILO urges East African countries to harmonise labour laws (The East African)
The International Labour Organisation is asking East African countries to adopt global labour standards and harmonise laws on migrant labour. This week, the ILO’s East African office gathered government and labour rights experts in Zanzibar to push for a common agenda on adopting labour standards as provided by the global workers’ organisation.
And as countries in the neighbourhood work towards free movement of labour, the ILO says a common policy on migrant labour can help protect the workers as well as ensure only the needed labour is available.
Mr Wellington Chibebe, Director, ILO Country Office for the East African region that includes Tanzania, Burundi, Kenya, Rwanda and Uganda, told an audience that the region must work towards common policy to ensure legal migrant labour is categorised the same way across the region. “There’s a need to formulate and implement coherent, comprehensive, consistent, and transparent policies in line with international labour standards, for better protection of migrant workers,” he said, according to a speech shared with the media.
ECOWAS parliament speaker links dollars for regional trade to inflation, seeks adoption of common currency (WorldStage)
The Speaker of the Parliament of Economic Community of West African States (ECOWAS) Dr. Sidie Tunis has called for more political commitment towards the adoption of the ECOWAS common current, while blaming inflation in the region on the use of United States dollars in trade. Tunis told journalists in Bissau, Guinea Bissau at the on-going parliamentary seminar on Sequencing ECOWAS Monetary Cooperation Towards Single Currency, with the theme: “ECOWAS Common Currency and the Inter Bank Payment System as Promoters of Regional Trade,” that, “We should be able to trade easily with our currency but that is not happening, trading with USD is naturally increasing prices on our commodities.
Dr Sidie Tunis disclosed that lack of Single Currency in the ECOWAS region has impeded viable exports which currently stands at 10%, margin that is very low for a region of 400 million.
He said, “As you are aware, intra-regional trade is relatively low in the ECOWAS region. According to statistics, it represents about 10% of both exports and imports of Member States.
“Several reasons have been put forward to explain these low levels of intra-community trade. Among these, the lack of a single currency among ECOWAS Member countries has been identified as a major obstacle and a factor that aggravates transaction costs. In addition, efficient payment systems are a stimulus for intra-regional trade.
Momentum builds for free movement under AfCFTA (UNECA)
Trade experts, business executives, and advocates of the African Continental Free Trade Area (AfCFTA) from across the continent have expressed concerns about the slow progress on the ratification of the Protocol on the movement of people. The Agreement has, thus far, been signed by fifty-four of the fifty-five African Union (AU) Member States. Forty-four countries have deposited their instrument of ratification, but only four have ratified the Protocol on the movement of people.
In a document released at the end of a three-day Africa Prosperity Dialogue held in Ghana from 26 to 28 January on the theme “AfCFTA: From Ambition to Action - Delivering Prosperity Through Continental Trade,” African countries are called upon to “accelerate the ratification of the Protocol.”
Stop $88bn illegal outflow from Africa – Akufo-Addo urges states (BusinessGhana)
President Nana Addo Dankwa Akufo-Addo has called on African nations to collaborate and institute stringent measures to stem the disturbing annual illicit outflows of $88 billion from the continent. He said stern attention was required to arrest the situation immediately because the phenomenon was depriving Africa of significant resources that could be used to support its development agenda. President Akufo-Addo made the call when he addressed the closing ceremony of the three-day African Prosperity Dialogue (APD).
“We need to pay serious attention to and arrest illicit financial outflows out of the continent, which are estimated at about $88 billion dollars annually, depriving Africa of significant resources that could be used to support our development agenda… We need concrete measures to stop the systemic impoverishment of our continent and theft of its resources,” President Akufo-Addo stressed.
Modernisation, harmonisation of regulatory frameworks critical for universal broadband coverage by 2030 – Ralph Mupita (MyJoyOnline)
Ralph Mupita, The President and CEO of MTN Group, Africa’s telecommunications giant, has called for modernisation and harmonisation of regulatory frameworks to ensure Africa can deliver universal broadband coverage by 2030. He said, “Achieving universal broadband coverage on the continent and building digital solutions for Africa’s progress requires a lot of investment not only in terms of digital infrastructure across regions but modernisation of our policies and frameworks as well as the collective effort of all stakeholders”.
What should be the top priority for Africa in 2023? (Brookings)
Since we launched the previous edition of Foresight Africa in January 2022, our world has changed remarkably. Russia invaded Ukraine – an unanticipated event that roiled the global economy and sent food, fuel, and fertilizer prices sky high. Sanctions on Russia resulted in trade and logistical bottlenecks, which added more pressure on already strained supply chains, writes Aloysius Uche Ordu, Director – Africa Growth Initiative.
Meanwhile, the uneven recovery from the COVID-19 pandemic continued to feature in headlines across Africa and elsewhere. The combination of fragility in parts of the African continent and adverse weather conditions dampened economic growth in the region in 2022. With these external and internal headwinds, it is easy to be pessimistic about Africa’s prospects. Yet, time and time again Africa has proved resilient. We must be conscious of the danger of a single story – especially as many African countries will continue to fare well, despite the odds. Indeed, even though the region is unlikely to be fully out of the woods in 2023, the Economist Intelligence Unit forecasts overall growth of 3.2 percent. Medium-sized economies, such as Senegal, Côte d’Ivoire, the Democratic Republic of Congo, and Kenya, will drive much of this growth – with predicted growth rates of 5 to 7 percent in the year ahead. On the other hand, the region’s economic powerhouses (South Africa, Nigeria, and Egypt) are expected to record slower growth.
A decade of progress is under threat as overall African governance flatlines, the 2022 Ibrahim Index of African Governance finds (Mo Ibrahim Foundation)
The 2022 Ibrahim Index of African Governance (IIAG), launched by the Mo Ibrahim Foundation, highlights that African governance has flatlined since 2019, reflecting a series of disruptions caused by a combination of the COVID-19 pandemic, increased insecurity, and widespread democratic backsliding, posing a serious threat to several years of progress on the continent. Commenting on the data, Mo Ibrahim, Founder and Chair of the Mo Ibrahim Foundation, said: “The 2022 Ibrahim Index of African Governance highlights that African governance has flatlined since 2019. Unless we quickly address this concerning trend, the years of progress we have witnessed could be lost, and Africa will be unable to reach in due time the SDGs or Agenda 2063.
Our continent is uniquely exposed to the converging impacts of climate change, more recently Covid-19, and now the indirect impact of Russia-Ukraine war. Governments must address all at once ongoing lack of prospects for our growing youth, worsening food insecurity, lack of access to energy for almost half the continent’s population, heavier debt burden, growing domestic unrest. Coups are back, and democratic backsliding spreading. These are challenging times. More than ever, commitment to strengthen governance must be renewed, unless we lose all progress achieved”
Dakar 2 Summit: Development partners to commit $30 billion to boost food production in Africa (AfDB)
The second Africa food summit in Senegal ended on Friday, with development partners agreeing to commit $30 billion to back the continent’s resolve to boost agricultural productivity and become a breadbasket for the world. Among the development partners are the African Development Bank which plans to contribute $10 billion over five years, and the Islamic Development Bank, which intends to provide $5 billion.
The Dakar 2 Summit—under the theme ‘Feed Africa: food sovereignty and resilience’—adopted a Declaration on the implementation of the Summit’s resolution, to be submitted to the African Union.
More African Nations Are Expected To Tap The G20's Debt Restructuring Plan (Bloomberg)
More African countries are expected to join Chad, Zambia, Ethiopia and Ghana in seeking to restructure debts under the Group-of-20 nations’ so-called Common Framework, the head of a United Nations panel said.
“One could argue there are four or five countries there that are certainly at risk of falling into that debt trap,” Antonio Pedro, the executive secretary of the UN Economic Commission for Africa, said in an interview by phone from Addis Ababa, Ethiopia’s capital. He declined to identify them.
Global supply chain challenges will not affect energy transition progress in 2023 — Report (Nairametrics)
Strategic research provider, Bloomberg New Energy Finance (BloombergNEF), has said that global supply chain challenges will not affect the energy transition progress in 2023. This was stated in BloombergNEF’s Energy Transition Investment Trends (ETIT) which was released recently. The report said that the signs are good for 2023 and beyond, noting that policymakers are now shifting their attention away from vision and goals, and looking toward execution and delivery. The report said:
“Growing policy support and the increasing competitiveness of clean energy technologies continue to underpin a rapid acceleration in the energy transition. While supply chain disruption and inflation have posed challenges, they do not appear to have put a meaningful dent in the speed of the energy transition.”
The report stated that annual global investment in energy transition technologies has exceeded $1 trillion for the first time, hitting a new record level of $1.11 trillion in 2022 and recording a 31% yearly gain. It also said developing economies still need to unlock a lot of ambitious goals in renewables.
UN Report Calls for “SDG Push” to Lift Millions of Africans out of Poverty (IISD)
The African Union Commission (AUC), the UN Economic Commission for Africa (ECA), the African Development Bank (AfDB), and the UN Development Programme (UNDP) issued a report assessing Africa’s progress towards the SDGs and related goals of Agenda 2063 in light of the COVID-19 pandemic and the war in Ukraine. The report finds that without “an SDG push,” by 2030, at least 492 million people will be left in extreme poverty, and at least 350 million by 2050.
Only slight improvement has been registered on SDG 17. Noting decreases in Official Development Assistance (ODA) and Foreign Direct Investment (FDI) inflows, the report recommends that Africa foster its domestic resource mobilization and savings and boost its information and communication technology (ICT), to accelerate implementation of the SDGs and Agenda 2063.
The report assesses the impacts of the COVID-19 pandemic on selected SDG indicators under four scenarios: no COVID; a COVID baseline; a High Damage scenario; and an SDG Push scenario. As an illustration, the pandemic pushed 23.6 million Africans into extreme poverty in 2021, compared to the no-COVID scenario. The report estimates that by 2030, at least 492 million people will remain in extreme poverty, and at least 350 million people by 2050. However, if countries adopt and implement policies to “push” the SDGs, the number of people in extreme poverty would drop from 489 million in 2021 to 442.4 million in 2030, and to 159.7 million in 2050.
The report further describes how the impacts of the war in Ukraine are threatening food security and economic stability in Africa, triggering social unrest in some countries. It recommends that the region, inter alia: build resilient economic systems to reduce the over-reliance on food imports by transforming agricultural productivity through modernization; and make significant investments to promote equitable and affordable access to energy to sustain economic transformation.
Arab Africa Trade Bridges (AATB) Program Hosts Series of Bilateral Trade Business to Business (B2B) Meetings in Casablanca, Morocco (African Business)
The Arab-Africa Trade Bridges (AATB) Program, a multi-donor, multi-country, and multi-organizations program organized the 3rd Arab African Buyers/Sellers Meeting on Agri-food and Derivative Products in Morocco. The two-day event brought together leading agricultural and food industry professionals from across the Arab and African regions.
Emphasizing the enormous agricultural market potential of the Arab and African regions, the event provided participating organizations with the opportunity to establish and forge commercial relationships and promote cooperation with partners from both regions.
Eng. Hani Salem Sonbol, CEO of ITFC and AATB Secretary General, during his opening remarks, said: “The AATB Program is more than ever committed to promoting trade and economic development between Arab and African countries through its various interventions.
Belarus to discuss development of hub in Africa to trade its products (Belarusian Telegraph Agency)
Belarus will discuss the possibility of establishing a hub in Africa to trade its products. The issue will be talked over during the upcoming state visit of the Belarusian president to Zimbabwe, Charge d’Affaires of Belarus to Zimbabwe Dmitry Sakun told the media.
Speaking about the logistics of delivery of goods to such distant countries as Zimbabwe, the diplomat said that there have always been logistical difficulties, and especially recently these costs have increased significantly. Nevertheless, many European and American manufacturers successfully supply their equipment to African countries. Dmitry Sakun is confident that Belarus can do the same.
As for the price of the goods taking into account all costs related to logistics, Dmitry Sakun said that it is always possible to find some options with the local partners to work out the logistics solutions.
Ukraine food trade in trouble as war decimates production and exports efforts slump (FoodIngredientsFirst)
The number of ships departing Ukrainian ports through the Black Sea Grain Initiative food corridor has fallen to less than three a day, on average, the lowest in months. The war-torn country accuses Russia of artificially blocking the grain corridor via delayed ship inspection.
This is not the first nor the second time that the food corridors have been paralyzed due to inspection delays, as inspections are carried out by authorities from Ukraine, Russia, Turkey and the UN.
Flora Dewar, director of trade and logistics at Coceral, the European association of trade in cereals, oilseeds, rice, pulses, olive oil, oils and fats, animal feed and agro supply, tells FoodIngredientsFirst that the delays in transit are reported to be 60 days on average.
After a deal was brokered to extend the initiative and allow maritime transit of food, in November, inspection delays had ships stuck up to 15 days awaiting inspection. One month earlier, up to 165 ships were stuck. Ukraine also condemned Russia for delaying checks and using food as a tool of war at the time.
During January, grain exports through the corridor have been 2.4 million metric tons, considerably less than the 4 million metric tons exported in September and October.
Earlier this year, the EU and the FAO announced a partnership to provide US$15.5 million to ensure and support Ukrainian food systems impacted by the ongoing war. Ukraine has managed to export 30 million metric tons of grains and oilseeds in the 2022/2023 season through the food corridors and alternative land routes toward the EU.
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SADC 2023: The year for economic growth, resilience and value addition (sardc.net)
The year 2023 offers an opportunity for SADC to consolidate its development agenda and the gains made towards regional integration to positively impact the lives of citizens, including peace and security. The previous year opened the way for southern Africa to emerge from the devastation of the Covid-19 pandemic in the two years before.
With the threat of the pandemic still hanging, the Member States of the Southern African Development Community (SADC) continue to take measures to minimize its impact, while forging ahead with their integrated agenda for development.
Pandor thanks EU for supporting SA's developmental agenda (SAnews)
South Africa says it appreciates the European Union’s (EU) continued support of the development cooperation aligned to the National Development Plan (NDP) and the backing it received during the COVID-19 pandemic and the creation of the local mRNA vaccine technology transfer hub.
“This support and partnership enhance Africa’s own capacities,” the Department of International Relations and Cooperation, Dr Naledi Pandor, said on Friday. These were Pandor’s opening remarks during the 15th South Africa-European Union Ministerial Dialogue, currently underway in Pretoria.
Egg prices to increase on shortage, expensive imports from Uganda (Business Daily)
Consumers are paying more for eggs as the price of the commodity shoots to a high of Sh450 a tray from Sh380 in November, amid scarcity and expensive imports from Uganda. The sharp rise in cost has been attributed to a scarcity in production due to rising demand from consumers. Kenya Poultry Farmers Association said the shortage had been occasioned by the high cost of feed in the last two years and a rebound in demand after the easing of the Covid-19 pandemic, which had impacted negatively on purchasing power.
In Uganda, where Kenya gets the bulk of imports to stabilise the local prices, the cost of a tray has shot from Sh205 in December to Sh308 currently, making it difficult for Kenyan traders to procure stocks there as they will have to incur another cost in transport, making it expensive when it gets to the country.
Kenya and Mozambique have Agreed to Boost Trade and Agricultural Ties (ZAWYA)
President William Ruto and President Filipe Nyusi of Mozambique said the two countries will prioritize agricultural value addition, especially in the tea, sugar and coffee sectors.
President Ruto emphasized the importance of regional blocs in the facilitation of the movement of goods and people. The President expressed the need for all member countries of the East African Community (EAC), Southern Africa Development Community (SADC) and Common Markets for Eastern and Southern Africa (COMESA) to ratify the Tripartite Alliance which brings together the three regional blocs.
“This will provide an improved framework for trade and investment without unnecessary hurdles,” President Ruto said.
Zimbabwe expanding grain storage capacity (World-Grain.com)
The government of Zimbabwe said it plans to spend more than $275 million over the next three years to build new Grain Marketing Board (GMB) silos and renovate and modernize older silos to serve increased grain production, which is anticipated to reach 3 million tonnes for 2022-23.
The Strategic Grain Reserve (SGR) has a storage capacity of 500,000 tonnes, and the government intends to raise it to 1.5 million tonnes. Zimbabwe, a landlocked nation of 16 million people in southern Africa, currently has 12 silo plant sites with a total holding capacity of 751,000 tonnes.
Zimbabwe achieved a record wheat harvest of over 375,000 tonnes in 2022. GMB also can store bagged maize and other grains under canvas, as it has done in the past. Besides maize, there are high expectations of a large harvest of traditional grains, the government said.
ACTESA Develops a Regional Seed Information System (COMESA)
The Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA), has developed a Seed Information System which will be used to measure performance of the COMESA Seed Trade Harmonization Implementation Plan (COMSHIP).
The COMESA Seed Information System (COMSIS) will give an opportunity to seed companies with varieties on the COMESA Variety Catalogue to know about business opportunities and market their products in the Member States. For sustainability, all companies using the platform will be required to contribute to the running of the COMSIS software.
The region has had the challenge of lack of timely availability of improved seeds and other planting materials at affordable prices both of which are critical for increased productivity for farmers.
AfCFTA: Economic Commission for Africa, AfreximBank launches African Trade Exchange Platform (Nairametrics)
The Economic Commission for Africa (ECA) and Afreximbank announced the development of the African Trade Exchange Platform (ATEX), a digital business-to-business (B2B) and business-to-government (B2G) tool to boost trade in Africa. A statement by the Economic Commission for Africa on Friday explained that ATEX would help boost intra-African trade under the African Continental Free Trade Area (AfCFTA).
The statement added that the Platform was developed in partnership with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat.
They added the AfCFTA was expected to impact countries differently, based on their existing comparative advantages, all African countries would benefit and ensures gender policy is mainstreamed in the national AfCFTA implementation strategies, which is collaborating with African nations for AfCFTA implementation strategies.
IMF boss in Kigali to discuss climate change financing for EA (The East African)
International Monetary Fund (IMF) Managing Director Kristalina Georgieva will on Wednesday join a roundtable discussion on climate change financing with East African finance ministers and governors of central banks in Kigali, Rwanda. Ms Georgieva was expected to arrive in Kigali on Tuesday evening from Zambia.
Her visit to Rwanda comes a few weeks after her board approved $319 million in concessional funding to support climate change mitigation policies under its new policy support instrument under its Resilience and Sustainability Trust (RST) making it the first African country to access the funds.
On December 14 during a panel discussion in Washington about RST, Georgieva underscored the need to support emerging markets and developing countries to transition into low-carbon economies and become climate resilient.
Private sector urged to “own and drive” Africa’s continental trade agreement (UNECA)
The private sector is recognized as an indispensable stakeholder in the African Continental Free Trade Agreement (AfCFTA), especially given its ability to catalyze sustainable economic development and job creation. “Africa’s private sector accounts for80 percent of total production, two-thirds of investment, and three-quarters of credit, and employs 90 percent of the working-age population,” said Stephen Karingi, Director of Regional Integration and Trade at the Economic Commission for Africa (ECA).
Speaking during the opening of a three-day Africa Prosperity Dialogues on 26 January in Ghana, Mr Karingi called on captains of trade and industry to “own and drive the implementation of the AfCFTA by supporting their governments but also by holding them to account.”
Press spotlights call on African leaders to deepen intra-African trade, others (Journal du Cameroun)
The call by Vice President Mahamudu Bawumia on Africa’s political and business leaders to develop signature solutions needed to deepen intra-African trade, spur impactful investments and bring prosperity to the continent is one of the leading stories in the Ghanaian press on Friday. The Ghanaian Times reports that the Vice President, Dr Mahamudu Bawumia, has charged Africa’s political and business leaders to develop signature solutions needed to deepen intra-African trade, spur impactful investments and bring prosperity to the continent.
Opening the maiden edition of the Africa Prosperity Dialogues (APD), at Adukrom, in the Eastern Region yesterday, he pointed out three main areas that needed attention to bring Africa’s desired transformation.
They are smart investments in critical infrastructure, unleashing of productive capacities across the continent, and mobilisation of finance and investments to bridge the infrastructure gap and generate sustainable growth.
GIPC hosts Africa’s Annual Assembly of Investment Promotion tomorrow (BusinessGhana)
The Ghana Investment Promotion Centre (GIPC) is set to host the First Annual Assembly of African Investment Promotion Agencies to promote intra-Africa trade. The event, which focuses on: “The Role of Investment Promotion Agencies (IPAs) in Facilitating Intra African Trade”, is scheduled for tomorrow Wednesday, January 25, at the Kempinski Hotel Gold Coast City in Accra.
In a Statement, the GIPC said: “Heads and representatives of the invited African Investment Promotion Agencies along with colleagues from the World Association of Investment Promotion Agencies (WAIPA), economic and political leaders will explore the critical role Investment Promotion Agencies play in boosting intra-African trade.”
“There will be further discussions on the emerging opportunities the AfCFTA continues to present and how various development actors can leverage them to facilitate trade on the continent and boost socio-economic development,” it said.
Ecowas pushes for policy priority to kick off economic growth post covid 19 (Vanguard)
The Economic Community of West Africa States (ECOWAS) has urged governments of the ECOWAS countries to give policy priority to programmes that will promote pro-growth economic policies and enhance institutions to enable economic growth. The Speaker of the ECOWAS Parliament, Dr Sidie Mohamed Tunis in an address at the closing of the parliamentary seminar on Sequencing ECOWAS Monetary Cooperation Towards Single Currency, with the theme: “ECOWAS Common Currency and the Inter Bank Payment System as Promoters of Regional Trade,” holding in Bissau, Guinea Bissau, argued that such policies will translate to a reduction the economic dependency of the region.
Payment Systems Glitches: ECOWAS Intra-regional Trade Drops By 10% (Leadership News)
The Economic Community of West African States (ECOWAS), the bloc founded to promote cooperation and economic integration in West Africa has reported a 10 per cent drop in trade volumes within the region. Lawmakers in the regional parliament representing over 400 million people blamed the lack of a single currency among ECOWAS member countries and efficient payment systems as the main drivers for the overt trade deficits.
Speaker of the ECOWAS parliament, Dr Sidie Mohamed Tunis, stated this at the first 2023 parliamentary seminar on Sequencing ECOWAS Monetary Cooperation Towards Single Currency, with the theme: “ECOWAS Common Currency and the Inter Bank Payment System as Promoters of Regional Trade,” holding in Bissau, Guinea Bissau.
EU, India pledge support to drive FDI to Lagos Free Zone (The Guardian Nigeria)
The Indian High Commissioner to Nigeria, Shri G. Balasubramanian, and the European Union Ambassador to Nigeria and the ECOWAS, Ms. Samuela Isopi, have pledged their support to drive Foreign Direct Investment (FDI) to the Lagos Free Zone (LFZ). Balasubramanian, during an official visit to Lagos Free Zone, expressed satisfaction with the quality of infrastructure and investments in the Zone. He stated that the Zone has the potential to change Nigeria’s economic landscape by attracting more foreign direct investments and pledged to share the message of the unique opportunities available in the Zone with Indian companies in Nigeria and abroad.
“The Zone offers investors a unique opportunity, especially in tax benefits and exemptions. Nigeria is the giant of Africa, and there is a great opportunity to be explored within the Zone. Lekki Port, on its own, is a fantastic facility that will change how business is done in Nigeria. Of course, it will attract a large number of businesses and a large number of containers to be handled,” he said.
Members’ discussion on e-commerce work programme highlights importance of consumer protection (WTO)
On 26 January, WTO members discussed consumer protection in the first of a series of dedicated discussions to be held this year under the Work Programme on Electronic Commerce. Members recognised the importance of consumer protection in enhancing trust in e-commerce, shared experiences and highlighted the challenges they face in this area.
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Bilateral set to cement SA-US relations (SAnews)
Anti-money laundering, climate financing and sovereign debt resolution in Africa are expected to top the agenda when Finance Minister, Enoch Godongwana, engages United States Secretary of Treasury, Janet Yellen, during a bilateral meeting on Thursday.
Addressing media ahead of the closed meeting today, Godongwana described the bilateral as a “momentous occasion”. He said there had been constructive cooperation between the two countries through the G20 and the Financial Stability Board, including making appropriate regulatory standards for the financial sector. “There has also been broader cooperation between the US and the African region,” said the Minister.
“The USA ranks among South Africa’s top trading partners with a diverse flow of goods, services and knowhow between the two States, serving as a critical launch pad for the development of both economies. My hope is that this may continue,” said Godongwana.
FG moves to end relocation of automobile industries (Daily Trust)
The federal government has initiated moves to reform the automobile industry to attract companies to invest in the country.
Speaking during a stakeholder consultative yesterday, the Permanent Secretary of the Ministry of Finance, Budget and National Planning (FMFBNP), Engr. Nebeolisa Anako, said the increasing rate of relocation of manufacturing companies from Nigeria to neighboring countries such as Ghana, Benin Republic, among others due to the high cost of doing business is worrisome.
“In order for us to benefit maximally from the Industry, especially in view of the African Continental Free Trade Area (AfCFTA) window, there is a need for experts and stakeholders in the industry to deliberate, identify, and fashion out a roadmap that will enable government addresses the specific issues affecting the Industry.
“The sector needs to be revived to increase its contributions to the National development as well as the Gross Domestic Product (GDP). The crucial role of the Automobile Industry in the development of Nigeria’s economy cannot be over-emphasized.
Ghana summit on Africa’s prosperity opens in Accra (Africa Feeds)
African political and business leaders gathered in Ghana’s capital Accra on Thursday for a summit on the continent’s prosperity agenda. Dubbed the “Africa Prosperity Dialogue Series” participants have been discussing how Africa can achieve deeper economic integration between different states. Ghana is the host nation of the AfCFTA (The African Continental Free Trade Area) Secretariat, which is spearheading an agenda of reducing trade barriers on the continent.
The vice president of Ghana, Dr. Mahamadu Bawumia who spoke at the start of the summit said the continent must get serious in reducing poverty through what he called “smart investments.”
“As a continent, we need to produce and trade our way out of poverty and underdevelopment, and we cannot do that without investing in smart infrastructure across the continent,” he said.
The Ministers responsible for Transport and Corridor Development from Angola, Democratic Republic of Congo and Zambia with support and coordination of the Secretariat of the Southern African Development Community (SADC) will sign the Lobito Corridor Transit Transport Facilitation Agency (LCTTFA) Agreement at Lobito Port, Province of Benguela, Angola, on the 27th January 2023.
Lobito Corridor stretches from the Port of Lobito lying on the Atlantic Ocean, and passes through Angola from West to East through the Provinces of Benguela, Huambo, Bie’ and Moxico. It covers the mining areas of the Katanga Province of DRC and the Copperbelt of Zambia.
Lobito Corridor Transit Transport Facilitation Agency Agreement will accelerate growth in domestic and cross-border trade along the Corridor through the implementation of harmonised trade facilitation instruments, strengthening coordination of joint corridor development activities, and fostering effective participation of small and medium enterprises (SMEs) in value chains.
The signing of the corridor governance instrument will create a framework for the three SADC Member States to jointly develop harmonised corridor laws, policies, regulations and systems including infrastructure development in a coordinated and coherent manner aligned to the SADC Treaty, Protocols and development frameworks such as the Regional Indicative Strategic Development Plan 2020-2030, Regional Infrastructure Development Master Plan 2020-2027 and SADC Industrialization Strategy and Roadmap 2020-2063.
More Countries Keen to Join the TFTA (COMESA)
There is renewed momentum and willingness by COMESA-EAC-SADC Member States that are yet to ratify instruments of the Tripartite Free Trade Area (TFTA) to finalize internal consultations and join the eleven countries that have already signed the Agreement. Once 14 countries sign, the TFTA will be set into motion.
As Chair of the COMESA-EAC and SADC Tripartite Taskforce, COMESA has increased engagements with the remaining countries to ratify their instruments to join the TFTA.
“We are engaging and strategically approaching all the remaining member states who are yet to sign to do so as soon as possible so that by mid this year we can have the three or more remaining to bring the countries required to 14 for the Agreement to enter into force,” said Dr Christopher Onyango, the Director of Trade and Customs at COMESA Secretariat.
Draft Tripartite Protocol on Competition Policy Moves to next Stage (COMESA)
The proposed Tripartite Protocol on Competition Policy has been reviewed by the Tripartite Committee of Senior Trade Officials and will be recommended to the Tripartite Sectoral Ministerial Committee meeting for consideration before being submitted to the Council of Ministers for adoption.
The Protocol on Competition Policy does not provide for the creation of a Supra-national competition authority but is based on cooperation in the enforcement of competition and consumer protection matters by the Member/Partner States and Regional Economic Communities (RECs). It also guides Member/Partner States and RECs on the competition and consumer protection provisions that they should have at national and RECs level as well as to set up enforcement institutions.
Following the finalisation of the Protocol on Competition Policy, the Member/Partner States and the RECs are in the process of developing Regulations and Guidelines to guide the implementation its. Two meetings have since been held between September 2022 and January this year to discuss the Regulations and Guidelines.
African Development Bank Group plans to invest $10 billion over the next five years to boost Africa’s efforts to end hunger and become a primary food provider for itself and the rest of the world, Bank Group President, Dr Akinwumi Adesina, announced on Wednesday at the Dakar 2 Africa Food Summit in Diamniadio, east of the Senegalese capital of Dakar.
Adesina called on more than 34 heads of state, 70 government ministers, the private sector, farmers, development partners, and corporate executives to work out compacts that would deliver food and agriculture transformation at scale across Africa. He encouraged them to take collective action to unlock the continent’s agricultural potential to become a global breadbasket.
The Dakar 2 summit—under the theme Feed Africa: food sovereignty and resilience—takes place amid supply chain disruptions caused by the Covid-19 pandemic, climate change, Russia’s invasion of Ukraine.
China-Africa trade soars on spike in commodity prices (Nikkei Asia)
Africa’s bilateral trade with China surged to a record high last year, highlighting how Beijing’s commercial influence over the continent continues to dwarf that of the U.S. Rising commodity prices and Beijing’s push to promote imports from Africa pushed trade up 11% to $282 billion in 2022. China’s exports to Africa were $164.49 billion, according to Chinese customs authorities, while imports reached $117.51 billion.
Yellen says Africa to shape world economy as US reengages (KTAR.com)
U.S. Treasury Secretary Janet Yellen watched Ford cars and pickup trucks being assembled at a plant in South Africa on Thursday, citing it as an example of cooperation between Washington and Africa as she begins the Biden administration’s big push to reengage with a continent that has 1.3 billion people and an abundance of economic potential.
“The United States’ strategy towards Africa is centered around a simple recognition that Africa will shape the future of the global economy,” Yellen said at the Ford plant in the suburb of Silverton in the South African capital, Pretoria.
“We know that a thriving Africa is in the interest of the United States. A thriving Africa means a large market for our goods and services. It means more investment opportunities for our businesses like this Ford plant, which can create jobs in Africa and customers for American businesses.”
African mining investors see opportunity amid rising insecurity and recession fears (Mining Weekly)
The “world’s largest investment conference”, the Investing in African Mining Indaba, looks to entice investors to Cape Town’s International Convention Centre in hopes of righting “Africa’s myriad economies” following successive years of geopolitical shifts and economic disruptions, says international exhibition organiser Hyve Group’s Mining Indaba portfolio director Simon Ford.
This year’s theme – ‘Unlocking African Mining Investment: Stability, Security and Supply’ – speaks to the promise of African mining that sees recent changes “create pressure points and opportunities”, says Ford, noting that global economies are seeking security of supply for their energy transitions, as well as raw materials and precious metals to bolster their economic power.
“We would say that – in many reaches of Africa – the potential of mining is still untapped, and that there is significant opportunity for mining to attract capital and be transformative.” However, the global uncertainty and instability have yet to subside, with both the Russia-Ukraine conflict and the consequences of the Covid-19 pandemic lingering longer than many anticipated. There is also the niggling threat of a global recession.
IFAD and AfDB aim to boost productivity in Africa (Fruitnet)
The African Development Bank (AfDB) and the UN’s International Fund for Agricultural Development (IFAD) have signed a letter of intent in support of the pan-African Mission 1 for 200 (M1-200), a joint initiative to “reduce Africa’s food import dependency, and build sustainable, inclusive and climate-adapted food systems”.
“The current convergence of crises has exposed the underlying structural issues affecting agriculture and food systems,” said IFAD President Alvaro Lario. “Many countries in Africa need to find solutions now to avert more extreme consequences.”
In Africa, high fertiliser prices are hampering production in many low-income countries, while food supplies are impacted by the war in Ukraine and the effect of the climate crisis in many countries. The result has been an 8.5 percent rise in the cost of a typical food basket in Africa since 2020, according to data from the International Monetary Fund.
Africa’s energy access struggles a development stumbling block (ESI-Africa)
An African Development Bank Group team recently met with Swiss envoys working in West Africa to discuss Africa’s development agenda and energy access was highlighted as still being a big stumbling block to development.
Daniel Schroth, Director for Renewable Energy and Energy Efficiency, said Africa is not on track to meet United Nations’ Sustainable Development Goal number seven on universal energy access. He explained that as a result of the COVID-19 pandemic, for the first time in recent years the number of people without access to energy actually increased. He added that Africa’s lack of access to energy is slowing down the achievement of the other development goals.
“In view of the critical role of energy for development at large, the African Development Bank placed energy at the top of its agenda for the continent,” said Schroth.
Africa needs to adopt Open Skies policy, says EAC SG Mathuki (KBC)
Africa needs to adopt the Open Skies policy to improve air transport and in a united front, collaborate on the interconnectivity of the road networks to facilitate trade and movement of goods and services, EAC Secretary General has said.The East African Community Secretary (EAC) General Dr Peter Mathuki further called on the continent to deepen collaboration and address some of the issues hampering the region’s growth.
African countries have also been asked to provide investment incentives to businesses operating in the agribusiness, green and blue economy in order to reduce the soaring costs of basic foodstuffs coupled with rising inflation in Africa.
Global economic uncertainty remains elevated weighing on growth (IMF)
The shocks that have shaken the global economy in recent years have introduced a new normal for turbulence, driven in some cases by political fragmentation between countries. These episodes have also lifted uncertainty to exceptionally high levels, which in turn hurts economic growth as our research shows.
To better track the evolution of these conditions, we updated our World Uncertainty Index to show more frequent readings that are monthly, instead of quarterly, and incorporate data for 71 economies dating back to 2008.
A series of severe and mutually reinforcing shocks — the COVID-19 pandemic, the war in Ukraine and resulting food and energy crises, surging inflation, debt tightening, as well as the climate emergency — battered the world economy in 2022. Against this backdrop, world output growth is projected to decelerate from an estimated 3.0 per cent in 2022 to 1.9 per cent in 2023, marking one of the lowest growth rates in recent decades, according to the United Nations World Economic Situation and Prospects (WESP) 2023, launched today.
“This is not the time for short-term thinking or knee-jerk fiscal austerity that exacerbates inequality, increases suffering and could put the SDGs farther out of reach. These unprecedented times demand unprecedented action,” said António Guterres, United Nations Secretary-General. “This action
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The 53rd Annual Meeting of the World Economic Forum (WEF) in Davos, Switzerland, concluded on Friday, 20 January 2023. World leaders and corporate executives expressed hope that the looming recession facing the global economy could be avoided if countries collaborated to boost global trade and investment.
A high-level South African government and business delegation has returned home from the meeting more upbeat than before that the current economic slowdown and rising inflation could be resolved if nations addressed global supply disruptions that are leading to commodity shortages and driving up energy and food prices.
“The South African delegation did a fantastic job in Davos where it sold our country to global investors as a favourable market to do business and invest in. Notwithstanding the energy supply constraints that our country is currently grappling with, South Africa remains an attractive investment destination given its excellent infrastructure, sophisticated financial markets, and a skilled workforce,” says Sithembile Ntombela, Acting CEO of Brand South Africa.
“The structural reforms that are currently being implemented by the government are making progress in removing investment bottlenecks and reducing the cost of doing business. These reforms will enable South Africa, a preferred destination by local investors and global multinationals looking to expand across Africa, to take advantage of the opportunities presented by the African Continental Free Trade Area (AfCFTA),” says Ntombela.
Cargo ship to boost TZ-Comoros trade (Daily News)
The government has said it will deploy a cargo ship to ply between Mtwara Port and Comoros Islands from next month to serve traders in the two countries. “The ship is ready; it only awaits the clearance of some minor issues such as operation permits for it to be officially launched come February this year,” Mtwara Regional Commissioner Colonel Ahmed Abbas said.
According to the RC, the coming of the cargo ship is part of the government’s efforts to address long-lived challenges facing businesspeople operating their businesses between Mtwara and Comoro.
Trade deficit widens on fuel, cooking oil imports surge (Business Daily)
Kenya’s trade deficit in the 11 months to last November widened by 20.4 percent amid a surge in fuel and cooking oil imports and a weakening shilling. Data from the Central Bank of Kenya (CBK) show the gap between imports and exports widened to Sh1.49 trillion from Sh1.23 trillion in the corresponding period in 2021.The county’s total import bill — both public and private sector — rose by 20 percent to Sh2.29 trillion in the country, led by goods such as fuel and lubricants, vehicles, industrial inputs and edible oils.
Guinea 2022 Article IV Consultation (IMF)
Following a coup d’état in September 2021 and a year of socio-political tension, the situation has stabilized after the authorities agreed with ECOWAS on a revised, shorter (24-month) transition calendar. While the non-mining sector remains weakened by the subsequent shocks—the pandemic, political uncertainty, the global food and fuel price shock and ensuing food insecurity—overall growth remains buoyant, driven by strong mining production. Inflation hovered around 12 percent for most of 2021 and 2022, despite significant international prices pressures. Food insecurity became increasingly acute during 2022 stemming from the price shock and could be exacerbated next year.
Algeria and Libya’s strategic ‘‘gateway’’ location and sub-Saharan Africa’s huge potential heralds great potential for transit trade, Yassin Bousrewiel, Chairman of the African Economic Forum and General Supervisor of the Forum and Exhibition for Transport and Transit Trade in Africa (AFRO-TT), told Libya Herald in an exclusive interview today.
This forum comes due to the importance of the strategic location enjoyed by the two neighbouring countries as a gateway to Africa and the great potentials and human and natural resources of sub-Saharan Africa, he expanded. Sub-Saharan Africa contains about 30 percent of the world’s mineral wealth, 12 percent of oil reserves, 43 percent of gold and 50 percent of diamonds and 67 percent of arable land. The value of African exports and imports amounts to about US$ 1,016 billion, of which 6.8% is intra-trade, Bousrewiel added reinforcing the case for increased trade.
He explained that the forum will shed light on important African trade issues, diagnose the reasons for the low level of African transit trade, and encourage the private sector to enter African markets with the aim of promoting growth and economic diversification, providing new job opportunities, and reducing inflation in government funding spending in Libya and Algeria.
The East African Business Council (EABC) and the GIZ- Support to East African Market-Driven and People-Centered Integration Programme II kicked started the National Private Sector Sensitization Workshop on African Continental Free Trade Area (AfCFTA) Agreement on Trade in Goods Protocol in Kigali, Rwanda.
In his remarks, EABC Vice Chair, Mr. Denis Karera said, the AfCFTA Agreement envisages to boost intra-African trade through the gradual elimination of over 90 percent tariffs on goods and the removal of non-tariff barriers and trade restrictions on good and services. He urged Rwanda private sector players to educate themselves on AfCFTA and take the leading role in the AfCFTA agenda.
Mr. Kajangwe said sectors such as Manufacturing and agro processing are perceived to be less competitive but under AfCFTA these sectors in Rwanda can be very competitive when compared with other western African countries due to economies of scale. “Let’s take advantage of the market of the 1.2 billion people with a combined Gross Domestic Product valued at USD3.4 trillion which will be created by AfCFTA” guest of honor Mr Antoine Kajangwe the Director of General of Trade and Industry from Ministry of Trade and Industry, Republic of Rwanda said.
The East African Community (EAC) today officially launched the verification mission to assess the Federal Republic of Somalia’s readiness to join the Community. The verification team comprising of experts from the EAC Partner States shall be in Somalia from 25th January to 3rd February, 2023, to establish the country’s level of conformity with the criteria for admitting foreign countries as provided in the Treaty for the establishment of the EAC.
The Secretary General further said that the team will assess Somalia’s development strategies and plans in key areas of collaboration including infrastructure, energy, education and science, peace and security, and international cooperation.
AU roots for effective partnerships in South-South co-operation (New Vision)
The African Union (AU) has called on global south nations to continue creating partnerships that will effectively address the issues on the African continent and equally have partnerships that will deepen the delivery of tangible outcomes.
The call was made at the three-day second high-level forum on the South-South and Triangular Co-operation (SSTC) organised by AU Commission deputy chairperson Dr Monique Nsanzabaganwa at the Speke Resort Munyonyo in Kampala via a recorded video.
The AU is currently reviewing Agenda 2063 strategic partnerships for the first decade to establish the creation of more effective partnerships that are expected to enable improved synergy and co-ordination in the financing and implementation of the development frameworks at the national, regional and continental levels.
Morocco, one of the key African states, has come to New Delhi’s rescue, after China suspended exports of a key component to manufacture fertilisers essential for Indian farmers. India has turned to Morocco to secure fertilizers after China suspended the export of ammonium phosphate, a key component in the manufacturing of fertilizer. Over the weekend during the visit of Fertiliser Minister Mansukh Mandaviya Morocco, Morocco’s phosphate giant OCP Group announced signing a deal with India to supply New Delhi with 1.7 million metric tonnes of phosphate-based fertilizer over the coming 12 months.
Under the deal, OCP Group will supply India with 700,000 tonnes of fertilizer. The fertilizer would be tailor-made to meet the needs of the plants and crops they are intended for. The Moroccan fertilizer producer is set to provide another one million tonnes of fertilizer directly to the Indian farmers, according to a statement by OCP.
Ukraine/Russia war opportunity for Africa to ramp-up production: AU (Farmers Review Africa)
The disruption of grain deliveries from Ukraine is an opportunity for countries African countries to increase their food production at home, the African Union’s Commissioner for rural economy and agriculture, Josefa Sacko, has said.
Speaking to the European media, she said Ukraine and Russia made up significant of worldwide grain and oilseed exports and countries, mainly from Africa, dependent on imported wheat and other products imports were seriously affected by the disruptions and price spikes.
Some of the affected countries were Egypt, Algeria, Tunisia, Nigeria, Kenya, and Benin.
Africa: China, Russia and the U.S.’s Top Officials Scramble for Appointments With Africa (allAfrica)
Last week the new Foreign Minister of China, Qin Gang made his first international tour as the foreign minister to Africa. The visit was significant, it was symbolic in a way; it emphasized China’s foreign policy priorities. This week two very senior officials from Russia and the US will be in Africa almost the same time. The US Secretary of the Treasury Janet Yellen kicked started her visit in Senegal on Saturday. Her visit comes to as Biden’s administration continues to advance its charm offensive in Africa. The visits also mark a new scramble by China, Russia and the US as the competition development alternative energy infrastructure in Africa begins. Africa, led by South Africa, has committed to transition to clean energy harnessing its fast natural energy resources in this regard.
US Envoy Heads to Africa to Advance Joint Priorities (VOA)
U.S. Ambassador to the United Nations Linda Thomas-Greenfield will travel to Ghana, Mozambique and Kenya this week to advance joint priorities following December’s U.S.-Africa Leaders Summit.
Her tour, from January 25 to 29, will focus on regional security issues, food insecurity, humanitarian issues, and supporting African efforts to mitigate climate change, a senior administration official told reporters on Monday.
Thomas-Greenfield’s trip is happening in tandem with Treasury Secretary Janet Yellen’s ongoing mission to Senegal, Zambia and South Africa that will continue through January 28. Yellen is seeking to deepen U.S.-Africa economic ties, including by expanding trade and investment flows.
President Joe Biden announced over $15 billion in two-way trade and investment commitments, deals and partnerships at the three-day December summit that drew delegations from 49 African nations to Washington.
Africa has deeply felt the impact of Russia’s invasion of Ukraine as fuel, food and fertilizer prices rose in its aftermath. This year, U.N. agencies have warned that the impact of the fertilizer crunch could reduce the size of harvests on the continent.
The U.N. and Turkish-brokered Black Sea Grain Initiative has seen more than 18 million metric tons of Ukrainian wheat and other food stuffs exported to international markets since it was signed in mid-July.
India, Egypt agree to elevate bilateral relations, boost trade (Anadolu Ajansı)
Indian Prime Minister Narendra Modi and visiting Egyptian President Abdel Fattah El-Sisi on Wednesday discussed bilateral relations and agreed to boost trade. Addressing a press conference after a meeting in the capital New Delhi, Modi said they have decided to take the bilateral trade between India and Egypt to $12 billion in the next 5 years.
“We’ve decided that under India-Egypt Strategic Partnership we will develop a long-term framework for greater cooperation in the fields of politics, security, economics, and science,” he said.
Bilateral trade between India and Egypt reached $7.26 billion in 2021-22. The trade was fairly balanced with $3.74 billion in Indian exports to Egypt and $3.52 billion in imports from Egypt to India. More than 50 Indian companies have invested around $3.15 billion in diverse sectors of the Egyptian economy, including chemicals, energy, textile, garment, agri-business, and retail.
A slew of urgent reforms to carbon pricing, import tariffs and regulatory issues are needed to decarbonize supply chains in time for the 2030 goals, said Ngozi Okonjo-Iweala, Director-General, World Trade Organization, when she addressed the World Economic Forum’s Annual Meeting.
“Because countries tend to impose higher tariffs on relatively clean finished goods, but lower tariffs on often more-polluting inputs and intermediates, trade policy skews in favour of dirtier products – resulting in an implicit subsidy for CO2 production of $550 billion-$800 billion per year,” she said. Eliminating this bias, she added, would reduce global carbon emissions by 3.6% while increasing global income by 0.65%.
Speed, Cooperation and Resilience Can Mend a Fragmented World (WEF)
World leaders gathered at the World Economic Forum Annual Meeting 2023 in the first major international gathering of the year to address ongoing economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. While many economists forecast recessionary risks in 2023 and see geopolitical tensions continuing to shape the global economy, there are glimmers of hope that pressures on food, energy and inflation may be peaking.
“Our world is plagued by a perfect storm on a number of fronts,” said United Nations Secretary-General António Guterres, who called for urgent action on a number of interconnected challenges, including the global economic crisis, climate, income and gender inequality, US-China relations, Russia’s invasion of Ukraine and the lingering effects of the COVID-19 pandemic. “Now more than ever, it is time to forge the pathways to cooperation in our fragmented world.”
The Commonwealth Secretary-General yesterday called for an unprecedented level of international co-operation to reach timely and orderly resolutions to the interlocking crises of environmental breakdown, economic insecurity and rising inequality. Secretary-General the Rt Hon Patricia Scotland KC was delivering a keynote address at the 2023 Cumberland Lodge Residential Conference in Windsor, UK, on the theme ‘Commonwealth and Global Challenges’.
“We gather in the midst of new and decisive shifts in the world. The human damage, economic dislocation of COVID-19 and mounting debt confront us all. The rapid intensification of climate change poses an existential danger. The tremors of conflict and instability in our world, the spiralling costs of food and fuel, and economic uncertainty threaten a serious and protracted crisis.”
The Secretary-General continued that each of these crises can be met through international co-operation. However, she cautioned that the multilateral system is under immense pressure, calling for a reinvigoration of multilateralism. “People are anxious about the capacity of governments and international institutions to provide the leadership and action required,” she added.
Colombia finance minister Ocampo spells out actions to tackle global economic crisis (UNCTAD)
Colombia’s Minister of Finance and Public Credit, José Antonio Ocampo, has called for urgent policy actions to tackle the economic dimensions of the current cascade of global crises. Mr. Ocampo delivered on 23 January the 18th edition of the prestigious Raúl Prebisch Lecture, a series organized by UNCTAD and named after the organization’s first secretary-general. Watch the lecture.
He underscored the need to strengthen international tax cooperation, improving on the 2021 agreement in the Organisation for Economic Co-operation and Development’s Inclusive Framework in its two dimensions: limiting tax competition and fair taxation of multinational companies.
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Pandor hopes SA will learn from Greece’s renewables-based energy system (SAnews)
International Relations and Cooperation Minister, Dr Naledi Pandor, believes that the experience Greece has acquired over time in green power resources would be of immense value to South Africa as the country diversifies its own energy.
This comes as government announced a series of interventions aimed at solving the country’s worsening power crisis and expanding electricity availability to ease the ongoing load shedding.
According to some reports, Greece relies on a range of sources for electricity, with no one source accounting for more than 50%. In August of 2022, the non-profit online publication NPR said natural gas and renewable sources, such as wind and solar, accounted for the most power.
Pandor also spoke about shipbuilding, which is at the heart of the Greece economy and ranks as the world’s largest ship-owning nation.
Trade minister takes pride in Gambian made products (The Point)
Minister Baboucarr Ousmaila Joof, while speaking to the members of the press who accompanied him on the tour, said: “I feel proud of being a Gambian and I think that is the thing we need to support. The government in whatever forms will make sure it supports the local or domestic producers and create jobs.”
Minister Joof described the visit as another great day that signals a lot to him in terms of the potential to create jobs in this country and also to address food security. “Because a lot of what we eat is connected to flour which we know the raw materials are not available in the country yet.”
Deep Sea Port, Rice Mill in Lagos to generate $200 billion (Voice of Nigeria)
President Muhammadu Buhari says the newly inaugurated Lekki Deep Sea Port and the Imota Rice Mill are projected to generate economic benefits valued at 200 billion dollars. He spoke on Monday night at a State Dinner in his honour during his two-day official visit to Lagos State to commission landmark infrastructure projects undertaken by the State Government and the private sector, MRS Holdings Limited.
According to him, the projects will create more than 300,000 direct and indirect jobs adding that these labour-intensive projects, which will contribute to job creation in the country, fit well with his Administration’s plan to lift 100 million Nigerians out of poverty in 10 years.
He expressed delight that the alignment between Lagos State and the Federal Government, since 2015, has more than delivered the dividends of democracy for the good people of the State.
Through various policies, legislation and executive orders, we have worked very hard to facilitate private enterprise in Nigeria. ‘‘The results of this can be seen in the many thriving businesses across Lagos State, in manufacturing, oil and gas, creative industries, services, digital economy and many more, creating tens of thousands of jobs and economic opportunities for Nigerians. ‘‘I have no doubt whatsoever that posterity will be kind to us on account of these landmark projects and successes,” he said.
Diaspora remittance now among top earner for Kenya – Report (Garowe Online)
New data released by the Central Bank of Kenya reveals that the country’s diaspora remittances rose by 8.34 percent to $4 billion in 2022. This now places diaspora remittance as the second top earner of foreign currency closing in on exports, which brought in $5.8 billion worth of foreign currency in the same period.
Tea still remains the top leading export for Kenya, having earned the country a whopping $1.2 billion in 2022 last year. Horticulture followed closely at $901 million, chemicals $521 million, coffee $301 million, and petroleum products $77 million.
The creation of the diaspora state department by President William Ruto’s administration is meant to boost diaspora relations for Kenyans.
Botswana: A Hidden Gem Of Africa (Forbes Africa)
Botswana has made use of its wealth to build a robust social welfare system in the country, providing free education to its citizens and availing reliable health care. The mere existence of diamonds, however, is not the secret to Botswana’s miraculous growth. Oduetse Motshidisi, CEO of Non-Bank Financial Institutions Regulatory Authority says the role of Botswana’s institutions made the definitive difference in the country’s success. “Our institutional strength and legitimacy assures that there is proper governance, rule of law and most importantly, stops corruption and other activities that are harmful. The institutional structure and the resilience of those institutions and their ability to withstand challenges and threats makes a great difference,” he says.
Apart from mining, Botswana also relies on tourism and agriculture.
“Early this year, we imposed a two-year import ban on horticultural products. Now tomatoes, ginger, garlic, potatoes are locally produced and it is encouraging how people have responded to the ban,” states Fidelis Molao, Minister of Minister of Agriculture, Development and Food Security. “The agricultural sector currently contributes 2% to the GDP. The sector is undergoing transformation and there are a lot of opportunities. We are targeting communities who seem to be low on the economic ladder because agriculture is a major employer for these groups of people,” mentions Professor Julius R. Atlhopheng, CEO of National Agricultural Research and Development Institute.
Port of Maputo achieves new handling record, sees soaring chrome throughput (Engineering News)
The Port of Maputo achieved a new handling record in 2022, registering growth of 20% over 2021. The total volume handled last year was 26.7-million tons, compared with 22.2-million tons in 2021. This growth reflects the efficient use of rehabilitated berths 6, 7, 8 and 9, inaugurated in May last year, and the implementation of 24-hour operations at the Lebombo/Ressano Garcia border in April.
“The port has definitely been reaping the fruits of the major infrastructure developments performed in the last four years,” says Maputo Port Development Company (MPDC) CEO Osório Lucas.
“The decision of the government of Mozambique to establish a 24-hour border operation has also positively impacted the whole Maputo Corridor. “Paired with the investments made by the port in systems, including system integration with entities such as Customs and Km4, which contributed to the improvement in efficiencies, we have registered this growth in port volumes.”
Africa requires new strategy to optimise investment – Yofi Grant (Ghana News Agency)
Heads of African Investment Promotion Agencies, businessmen and women as well as academia will meet in Accra on Wednesday, January 25, to strategise on how African nations can add value to natural resources through Foreign Direct Investment (FDI) to boost their economies and create jobs. The discussions will be held during the First Assembly of African Investment Promotion Agencies (AAIPA) meeting at the Kempinski Gold Coast City Hotel, Accra. This will take place alongside the Africa Prosperity Dialogue series, to discuss ways to enhance economic growth and transformation of the continent.
The GIPC Boss noted that even though Africa had many natural resource endowments, including lithium, bauxite, and gold, and with 70 per cent of the world’s arable lands, it was still a small player in terms of global FDI attraction with only 5.2 per cent.
“We need to take advantage of the AfCFTA for wealth creation on the continent. If you look at the 480 major companies in Africa generating a billion dollar per year, most of them are multinationals and so we need indigenous ones to grow and create jobs for the teeming youth in Africa,” Mr Grant said.
He lamented the low percentage of intra-African trade, hovering around 18 per cent, and urged African leaders to leverage on the huge population of the continent; 1.4 billion, for wealth creation.
Countries Validate Green Pass Implementation Modalities for Fish Trade (COMESA)
Zambia, Zimbabwe and the Democratic Republic of Congo (DRC) have validated the implementation modalities of the Green Pass – an initiative meant to attest conformity to specific Sanitary and Phytosanitary (SPS) requirements as the region promotes small scale cross border fish trade.
COMESA Secretariat is implementing the Green Pass Project under the EU funded Small-Scale Cross Border Trade Initiative (SSCBTI), with a pilot on fish originating from Luangwa District in Zambia and traded across several borders, including the DRC through the Kasumbalesa border post.
To date, the Secretariat has implemented different activities of the project which includes establishment, procurement and commissioning of a mini-lab facility at Luangwa Border post. The lab contains rapid test kits, weighing scales, a container office and IT equipment.
They have also conducted capacity building of SPS and Technical Barriers to Trade (TBT) Regulatory Authorities for the DRC, Zambia, Zimbabwe and fish traders on risk-based food safety and self-regulation.
During the workshop, SSCBTI Project Team Leader Mr Tasara Muzorori made a presentation on the Simplified Trade Regime Programme under which the Green Pass Initiative is being implemented. He gave a highlight of the main objectives of the STR which includes enabling small scale traders to benefit from preferential tariffs of the free trade regime of COMESA, simplifying trade and customs processes and helping in bringing the informal trade into formal trade among others.
“The STR is a good programme and we commend Member States for embracing the Green Pass initiative which aims at facilitating and fast-tracking small-scale cross border trade across with minimum disruptions. Through this initiative, there is a reduction to overall trading costs for small scale traders, through simplification and consolidation of SPS/TBT measures and border verification procedures,” Mr Muzorori added.
Tripartite Free Trade Area – Taking Stock of Progress (COMESA)
Trade experts from seventeen countries under the COMESA-EAC-SADC Tripartite Agreement met in Nairobi, Kenya on 23rd and 24th January 2023 for the Tripartite Trade Negotiation Forum (TTNF) were they reviewed progress made on various thematic areas needed to make the TFTA operational and unlock enhanced trade and investment opportunities. This is intended to benefit the 29 COMESA-EAC-SADC Tripartite Member States.
The 21st Meeting of the TTNF discussed matters from the previous conference which included the exchange of tariff offers, signature and ratification of the TFTA Agreement, the Tripartite Resource Mobilisation Strategy, establishment of the Simplified Trade Regime and the study on trade in services.
High on the agenda was the need for Member/Partner States to re-commit themselves to the full operationalization of all the three pillars of the Tripartite namely; Market Integration, Infrastructure Development and Industrial Development.
Speaking during the opening of the meeting, Principal Secretary in Kenya’s State Department for Trade Mr Alfred K’Ombudo commended the eleven countries that have ratified the TFTA and urged the others to do the same.
“This year, let us ensure that we achieve the necessary signature, ratifications, and exchange of tariff offers. Let us consolidate our efforts toward the implementation of trade facilitation instruments and create room for businesses to trade and the private sector to invest,” said Dr Christopher Onyango, Director of Trade and Customs at COMESA Secretariat. He used the opportunity to commend the African Development Bank (AfDB) for its financial support to the Tripartite programme.
Ghana tops West African countries in 2022 Digital Competitiveness Index (Citinewroom)
Ghana is leading Anglophone West Africa scoring 66.0% in the 2022 digital competitiveness index, according to Digital Foundation Africa’s survey According to the survey, Ghana topped other African states including Cote D’Iovire, Nigeria, Burkina Faso, Niger amongst others, by implementing good policies to enhance its digital sectors. The second country in line is Carbo Verde with 65.5%, followed by Nigeria which ranked third with 65.0%. Niger, Burkina Faso and Mauritania were ranked the worst digital competitive West African states.
A statement issued by Digital Foundation Africa said, “The Index measures, access and rank which of the West Africans states is implementing, adopting while using good policies among other uses of digital services while mapping the growth of its digital development sectors for socio-economic transformations”.
Africa airlines must partner up and meet Abuja safety targets (The East African)
Airlines are constantly developing innovative ways to drive partnership benefits and African airlines should be no exception. The partnership options available are diverse and sometimes complex, involving increasingly integrated structures that require careful consideration and upfront due diligence. The extent to which African airlines have progressed along the partnership continuum varies.
The economic growth, tourism and intra-African trade potentials are good new traffic opportunities in the intra-African air transport market. Trade and tourism support air transport, and efficient services generate additional tourism development. In other liberalised markets, intra-regional trade led to increased traffic.
Trade and air transport have a symbiotic relationship and are closely linked. Air transport and trade sectors are modest within Africa. Policymakers have adopted the SAATM and AfCFTA as flagship programmes; stakeholders need to work smart to boost these sectors.
Air transport is among the priority services sectors selected as the subjects of the first round of liberalisation under the AfCFTA trade-in services negotiations. A well-functioning air transport service sector also delivers positive effects on intra-African passenger travel that is likely to spark growth in education, healthcare, and tourism services.
Minister pledges UK support at Africa summit to fight food insecurity (GOV.UK)
The UK Minister for Development and Africa will emphasise the importance of the UK working with African countries to grow economies and boost food security, on a 2-day visit to Senegal, starting today (Tuesday 24 January). Arriving in Dakar, Andrew Mitchell will hail the important relationship between the UK and Senegal, a country, with huge economic potential.
Representing the UK at the Dakar 2 Feed Africa Summit, an African-led initiative, the Minister will listen to African leaders talk about the causes of rising food insecurity and hear their vision for accelerating agricultural transformation, with the aim of maximising the UK’s impact in alleviating food shortages across the continent. The UK is working with regional organisations like AGRA, Regional Economic Communities and the Africa Continental Free Trade Area (AfCFTA) to help strengthen food trade in Africa.
Economic development is crucial to tackling challenges like food insecurity and climate change and on his visit Mr Mitchell will explore opportunities to expand UK investment into the country to make a real and lasting positive impact. The UK-Africa Investment Summit in 2020 announced 27 deals worth over £6.5 billion from across Africa. It also announced £9 billion worth of investment decisions.
During his visit, he will see the impact of such investment to date, including a $1.7 billion partnership between British International Investment and DP World which features a new container port at Ndayane, Senegal’s largest onshore investment. The port will enable the creation of over 20,000 new jobs and help unblock barriers to greater economic growth.
Germany’s Africa aid strategy highlights need for green jobs (DW)
German Development Minister Svenja Schulze on Tuesday outlined Germany’s overarching development policy vision for the African continent. Berlin aims to work with national governments and organizations to address challenges that could lead to mass migration, new conflicts and pandemics, and higher global carbon emissions.
The development minister said that, with the continent’s young, rapidly growing population, the core of Germany’s new strategy should be job creation. Schulze praised Africa as an emerging continent, rich in wind, sun, and mineral resources, with a population that would rise to 2.5 billion by 2050 with just under half of Africans being under 20 years old. As such, she said, some 25 million jobs need to be created each year.
Meat import ban in Africa hurts local population (Newswise)
The EU regularly exports large quantities of poultry meat to West African countries. These exports have been criticized for harming importing countries in West Africa and exacerbating poverty there. The reason: Cheap imports depress the local price of chicken, making life difficult for local smallholders.
Researchers at the Universities of Bonn and Göttingen have now used the example of Ghana to calculate the effects that would result if the country were to significantly increase its import tariffs for poultry meat or even stop imports completely.
The EU mainly exports chicken parts in large quantities to various West African countries, including Ghana. “The topic is much discussed when it comes to poverty, international trade and Europe’s role for the agricultural sector in Africa,” says Prof. Dr. Matin Qaim of the Center for Development Research (ZEF) at the University of Bonn.
The researchers calculated what the effects would be if Ghana were to significantly increase its import tariffs for poultry meat or even stop imports completely. The result: Domestic prices would, in fact, rise. If imports were stopped, local producers would get over a third more for selling their chicken – though most households in Ghana would not benefit.
Coinciding with the final days of the 2023 World Economic Forum, which was aptly themed “Cooperation in a Fragmented World”, the Africa Collective event aimed to identify concrete means of cooperation between attendees. The Collective convened a cross-section of over 80 key decision-makers from international and African corporations and pan-African governmental agencies to discuss how regional integration efforts, including the AfCFTA, are propelling opportunities in Africa..
H.E. Wamkele Mene said: ‘The African Continental Free Trade Area enables deeper value chain generation in Africa and makes the continent a larger, more relevant counterparty for international trade.’
Iain Williamson, CEO of Old Mutual Group said: ‘Let’s all be aware of the big prize that an integrated regional market represents. Even if the path may be difficult, there are quick wins and milestones to take right away.
The African Development Bank Group’s Acting Chief Economist and Vice President for Economic Governance and Knowledge Management, Professor Kevin Chika Urama, shares his thoughts on the inaugural Africa’s Macroeconomic Performance and Outlook report, released on Thursday 19 January.
The new biannual publication aims to provide African policymakers, global investors, researchers, and other development partners with an incisive, timely, evidence-based evaluation of the continent’s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments.
Like other world regions, Africa continues to face overlapping shocks such as the COVID-19 pandemic, climate change-related impacts, rising geopolitical tensions, supply chain disruptions and the tightening global financial conditions impacting key macroeconomic indicators.
Africa’s Macroeconomic Performance and Outlook Report responds to a critical need for timely information to help decision-making in a context of heightened global and regional uncertainties.
Global macroeconomic conditions have recently become uncertain, with persistent multiple shocks that make policymaking and investment decisions challenging. With these global shocks and their interaction with prevailing pockets of domestic and regional risks, the need for regular diagnosis and targeted policy actions to address their impacts on African economies is critical.
All member countries of the G20 group of economic powers seem to be buying into the idea of restructuring Ghana’s debt, alongside the Paris Club, a group of officials from major creditor countries, which is taking the forefront in setting up a creditor committee for the aforementioned objective. This step forward follows Ghana’s request for a debt restructure under a G20 Common Framework, a framework founded to aid low-income countries. Ghana’s petition for the debt restructure under the G20 Common Framework came last week, effectively making it the fourth country after Chad, Ethiopia and Zambia to do so.
This framework was created in 2020, following the global pandemic, and allows a streamlined process of coordinating creditor governments to restructure the debts of low-income countries.
It was recently reported that the country’s producer price index dropped by a whopping 25.9% in December, following the country’s currency revaluation against the dollar in the same month. Also in the same month, Ghana had introduced a debt swap program which was lauded as intuitive, and shortly after secured a staff-level agreement with the International Monetary Fund for a $3bn relief fund.
‘Let’s all become the champions the ocean needs’ – UN chief Guterres (UN News)
Let’s all become the champions the ocean needs. Let’s end the ocean emergency and preserve this precious blue gift for our children and grandchildren,” urged the UN chief. The Secretary-General was speaking from the Ocean Science Centre Mindelo, in São Vicente
For the UN Secretary-General, the Summit was also an opportunity to sound the alarm: “The ocean is life. The ocean is livelihoods. And the ocean is in trouble.” The UN chief explained that some 35 per cent of global fish stocks are over-exploited, global heating is pushing ocean temperatures to new heights, fueling more frequent and intense storms, rising sea levels, and the salinization of coastal lands and aquifers. “Meanwhile, toxic chemicals and millions of tons of plastic waste are flooding into coastal ecosystems – killing or injuring fish, sea turtles, seabirds and marine mammals, making their way into the food chain and ultimately being consumed by us,” Mr. Guterres stated. According to UN estimates, by 2050, there could be more plastic in the sea than fish.
DDG Paugam: Trade is crucial to ensure sustainable food supplies in times of crisis (WTO)
DDG Paugam outlined the WTO’s pivotal role in opening up trade and strengthening the global trade environment. The WTO rulebook promotes market transparency, which is a “must-have to alleviate pressure on prices,” he said. The WTO is committed to keeping markets open and limiting trade restrictions to the extent possible, he added.
“If restrictions need to be implemented, dialogue with the affected countries, especially the most vulnerable ones, is essential to find solutions. The WTO Committee on Agriculture provides an effective forum for these discussions,” he said.
Rising trade tensions between the U.S. and the European Union, two of the most important global leaders when it comes to climate policy, could undermine key climate initiatives of both governments and make it harder for the world to put the brakes on climate change. The two have clashed over the 2022 Inflation Reduction Act’s requirements that products be made in America to receive certain U.S. subsidies. The EU recently announced plans for its own domestic-only clean technology subsidies in response.
The U.S. and EU also now have competing carbon tariff proposals, and these could end up undermining each other.
Metals, mining industry execs pessimistic about global growth, CRU study finds (Engineering News)
More than half (52%) of global commodities business intelligence company CRU’s clients in the metals and mining industries expect global gross domestic product (GDP) to grow by no more than 1% this year, according to its yearly macroeconomic survey of clients, which polled global clients from the metals and mining industries in December. The outlook is bleaker than CRU’s forecast for global GDP growth in 2023, which sits at 1.6%.
The main risks identified are closely related to each other, with energy prices driving inflation and the Russia-Ukraine war contributing to higher energy prices.
Notably, the impact of climate change this year and a further deterioration in US-China relations has slipped down the list of threats in the view of those in the metals and mining industry, with only 11% and 4% citing these issues as downside risks.
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The construction industry plays a critical role in creating an enabling business environment. It is also a vital sector for the country’s economy, responsible for creating jobs, stimulating investment and improving infrastructure. This was said by the Investment Lead in the Private Office of the President, Dr Anthony Costa
According to Costa, the construction sector is a significant contributor to the Gross Domestic Product and plays an important role in the country’s development. “In addition to its economic contribution, the construction industry also plays a critical role in creating an enabling business environment. A well-functioning construction sector is essential for attracting investment, supporting small and medium-sized enterprises, and promoting innovation. By making it easier for businesses to navigate the construction permit process, we are helping to create a more conducive environment for entrepreneurship and economic growth,” said Costa.
China-South Africa trade hits record high (CAJ News Africa)
THE trade volume between China and South Africa reached US$56,7 billion in 2022. This represents an increase of 5 percent from the previous year and a record high. Chinese Ambassador to South Africa, Chen Xiaodong disclosed the figures the Chinese Embassy in South Africa held the “2023 Happy Chinese New Year and Overseas Chinese New Year Reception.” He noted China had been South Africa’s largest trading partner for 14 consecutive years.
Chen said China will continue to maintain its status as the world’s second largest economy in 2023, and its economy will develop steadily. He projected that the annual gross domestic product (GDP) will be about US$18 trillion.
“The mutually beneficial and win-win friendly cooperative relationship between South Africa and China has brought benefits not only to the people of the two countries, but also to the people of the world,” Former South African president, Kgalema Motlanthe, said.
Economy to rebound next year – Ken Ofori-Atta (Graphic)
The Minister of Finance, Ken Ofori-Atta, says the economy will rebound in 2024. He projected a steady growth of 4.8 per cent in the medium-term, between 2024-2026. Ofori-Atta said growth was projected at 3.9 per cent, 4.9 per cent, and 5.6 per cent, in 2024, 2025, and 2026, respectively. Ghana’s economy has been facing severe challenges in the last few years, with debt rising to GH¢467 billion, and the local currency depreciating by over 50 per cent in 2022. This prompted the country to seek help from the International Monetary Fund (IMF) who late last year gave a staff approval for a US$ 3 billion programme for the government. The programme is however dependent on the country’s ability to restructure its debts which has reached unsustainable levels.
Members commend Comoros’ efforts to clear final hurdles on path to WTO accession by MC13 (WTO)
Under the chairmanship of Ambassador Omar Zniber of Morocco, the Working Party welcomed a high-level delegation from Comoros led by Mr Ahmed Ali Bazi, Minister of Economy, Industry, Investment, and WTO chief negotiator.
Ambassador Zniber said: “My wish for the new year, which I hope is shared by all of you, is to help our Comorian friends conclude their accession. I am sure that this objective is within reach. It goes without saying that in the end the bulk of the effort will have to be made in Moroni where important legislative and technical work will have to be carried out in the coming months.”
“At the same time, we all recognize that the Secretariat, WTO members and the broader international community of bilateral and multilateral development partners must also intensify their support for Comoros’ efforts, including to prepare it to meet the challenges of the immediate post-accession period,” he added.
African blocs discuss challenges to realising single currency territories (The East African)
Africa’s main regional economic blocs say monetary unions will raise the value of trade and shield them from fluctuating exchange rates and are pushing to establish single currency territories. Gathering in Nairobi under the African Union, representatives from various member states of regional economic blocs (RECs) said exchange rates should be considered a barrier to trade and addressed with urgency. Some of the RECs such as the East African Community have identified a monetary union and a single currency as one way of boosting integration and eliminating the exchange shortfalls that routinely befall traders across the borders.
“We have debunked the myths about Africa being a continent of darkness, centre of disease, and it is now time to debunk the myth that there is no hurry in Africa,” CS Kuria said. “Other regions and continents have caught up and are interested in Africa, but Africa is still dragging its feet. The only way to do this is to establish linkages and bridges within Africa.”
US checkmates China in Africa by bolstering trade ties (Devdiscourse)
In order to counter China in Africa, which has made inroads with investments and trade, the US sought to expand its influence by bolstering trade ties in the continent, writes Arianna Skibell in Politico. Biden administration is planning investments in the supply chain for electric car batteries in Africa. The US want to wrest control of the supply chain for electric car batteries from China in Africa, where reports of child abuse and forced labour are rampant, writes Politico’s E&E News reporter David Iaconangelo. Notably, China is playing out in African mines. Zambia and Congo are major sources of cobalt and copper, key ingredients for lithium-ion batteries.
Once extracted, the bulk of those minerals are exported to China, where 75 per cent of the world’s lithium-ion batteries are made, writes Skibell. The US wants to disrupt that flow by helping Congo and Zambia not only extract minerals but also process, manufacture and assemble them into batteries.
Local startups seek funding to tap into AfCFTA (The New Times)
There is a need for funding and enhanced access to finance for young entrepreneurs with startups so as to increase both production and quality as a way of tapping into the African Continental Free Trade Area agreement (AfCFTA). Local young entrepreneurs made the request recently during the closing of a private sector conference organized by the East African Business Council (EABC) aimed at furthering the engagement and bringing on board the primary implementers of the continental agreement. “There is still the issue of getting funds to be able to increase both quality and production to be able to tap into the African Continental Free Trade Area agreement. The private sector needs to first grow and increase exports.
The Southern African Development Community (SADC) Secretariat fully complies with appropriate systems, controls, rules and procedures for ensuring protection of personal data in line with the globally recognised General Data Protection Regulation (GDPR) of the European Union (EU).
This was validated by the recent audit report for the period of November 2021 - October 2022 produced by Deloitte Reviseurs d’Enterprises which found the SADC Secretariat to be fully compliant. The EU conducts Pillar Assessments in order to evaluate whether to fund or conclude specific agreements with organisations such as SADC. This particular audit sought to assess if the SADC Secretariat complied with Pillar 9 which is a criterion set by the European Union to protect personal data privacy and security.
The SADC Secretariat amongst other risk mitigation actions, developed a Policy on the Protection of Personal Data, which was approved by the Council of Ministers in March 2022. This Policy provides guidance on how the Secretariat, its staff members, consultants, and stakeholders obtain, process, restrict, dispose or store personal data.
20 African heads of state, private investors meet in Dakar for food security (The Guardian Nigeria)
About 20 African heads of state and private sector leaders are among around 1,500 delegates meeting in Dakar, Senegal, this week, for a high-level discussion on roadmaps for achieving food sovereignty in the continent. The three-day meeting, under the auspices of the second edition of the Feed Africa Summit (Dakar 2), lays out action-driven discourse on how heads of state would mobilise government resources and leverage development partners and private sector financing to harness Africa’s food and agriculture potential and turn advocacy efforts into concrete actions.
With the theme, ‘Feeding Africa: Food Security and Resilience’, the summit is organised by the African Development Bank (AfDB) Group. It will be held from Wednesday to Friday at the Abdou Diouf International Conference Centre (CICAD) in Diamnadio.
World Economic Forum 2023: Key takeaways for Nigeria as new regime sets in the horizon (Vanguard)
As Nigeria prepares to see the back of the current political regime, the just ended 2023 World Economic Forum, WEF’23, held in Davos, Switzerland, appears to be setting agenda for a new leadership in the country expected to be in place in four months time. But the key takeaways from the WEF’23 also seems to show a world moving on a pathway to a better future while Nigeria looks like an onlooker going by the conclusions at the meeting against both present and possible future of the country especially in socioeconomic parameters.
Farmers from Kenya, Uganda & Mozambique to Get Fertilizers (East African Business Week)
The African Fertilizer Financing Mechanism (AFFM) has received a $10.15 million financing support from the Norwegian Agency for Development Cooperation (NORAD).The financing will target Agricultural projects for Small Scale Farmers in Uganda, Kenya and Mozambique.
NORAD’s contribution will enable the Africa Fertilizer Financing Mechanism to provide credit guarantees for up to 36 months in Uganda, Kenya and Mozambique, with the expected leverage of at least ten times the credit guarantee amount, enabling access to at least 85,000 metrics tons of fertilizer for 850,000 smallholder farmers in the three countries.
The Africa Fertilizer Financing Mechanism received a first instalment of $8.73 million through the African Emergency Food Production Facility window, on 27 December 2022.The role of the Africa Fertilizer Financing Mechanism is to strategize on innovative financial solutions to foster access
9th ARFSD to review implementation of 2030 Agenda and Agenda 2063 (UNECA)
The Ninth Session of the Africa Regional Forum on Sustainable Development (ARFSD-9) will be convened in Niamey, Niger, from 28 February to 2 March 2023. The Forum is organized jointly by the Economic Commission for Africa (ECA) and the Government of Niger, in collaboration with the African Union Commission, the African Development Bank and other entities in the United Nations system. The theme of the ninth session of the Regional Forum is “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 Forum will review progress made in the implementation of five selected Sustainable Development Goals on clean water and sanitation; affordable and clean energy; industry, innovation, and infrastructure; sustainable cities and communities; and partnerships for the Goals. This review is also situated within efforts to deliver climate action, and build resilience in a challenging era of ‘polycrises’.
WTO must bolster cooperation in a fragmented world: DG Okonjo-Iweala in Davos (WTO)
Topics for further work include the follow-up negotiations provided for in the Fisheries Subsidies Agreement; a decision on extending the TRIPS waiver compromise beyond COVID-19 vaccines to cover therapeutics and diagnostics; food security and agriculture reform; WTO and dispute settlement reform; development, in particular topics of interest for least developed countries; and e-commerce and a forward-looking agenda covering digital trade and climate change. DG Okonjo-Iweala suggested focusing on a few target areas for results at MC13.
Countries to meet in Abu Dhabi for UNCTAD’s World Investment Forum (UNCTAD)
UNCTAD will hold its 8th World Investment Forum in Abu Dhabi, the capital of the United Arab Emirates (UAE), from 16 to 20 October 2023.
Taking place under the theme “Investing in sustainable development”, the forum will bring together government leaders, global CEOs and other investment stakeholders. They will tackle the key challenges brought about by multiple global crises, including the need to invest in food security, energy, health, supply-chain resilience, infrastructure and productive capacity growth in the least developed countries.
“At a time when much of the world is struggling with contracting markets and a post-Covid recovery that has yet to fully take hold, UNCTAD’s 8th World Investment Forum is an important opportunity to take a long-term perspective,” Dr. Al Zeyoudi said. He said the challenges the world faces, whether systemic issues such as climate change, inequality and food security or mitigating the pandemic’s impact on trade, investment and supply chain resilience, require unity of purpose and action on an unprecedented scale.
“Against the backdrop of a highly volatile global economic landscape, the international community shares a collective responsibility to address the challenges facing the multilateral trading and development system,” Mohamed Ali Al Shorafa, chairman of the Abu Dhabi Department of Economic Development, underscored.
More investment needed to get global goals back on track, says UNCTAD chief (UNCTAD)
Mitigation strategies such as adopting renewable energy account for more than 90% of international climate investments, according to UNCTAD estimates. The UN Sustainable Development Goals (SDGs) can get back on track with more funding and targeted large-scale green investment in developing countries, also known as the global South. “True investments at scale are the only way to really get back in the race,” said UNCTAD Secretary-General Rebeca Grysnpan.
Ms. Grynspan spoke at an event entitled “Promoting investment for Sustainable Development Goals: Repurposing capital”, held on 17 January on the margins of the World Economic Forum’s 2023 annual meeting in Davos, Switzerland. Secretary-General Grynspan urged the global investment community to help rescue the SDGs by reversing current investment trends.
“A pandemic. A cost-of-living crisis. A war in Ukraine. A new geopolitical trade order. Basically, everything that could have gone wrong has gone wrong,” Ms. Grynspan noted. According to a recent report by UNCTAD, the multitude of crises on the global stage inevitably affected global foreign direct investment (FDI) in 2022.
To better implement the SDGs, more money needs to flow more from developed to developing countries, Secretary-General Grynspan emphasized. Developing countries face a $4 trillion annual SDG investment gap, according to UNCTAD estimates. But with rising interest rates in advanced economies, money left developing countries at record speed in 2022. That loss could mount to a staggering over $500 billion in foregone income, cutting foreign reserves and global investment outflows – even by the most conservative estimates.
Switzerland is first WTO member to formally accept new Agreement on Fisheries Subsidies (WTO)
DG Okonjo-Iweala said: “I am very grateful to Switzerland for its leadership in being the first WTO member to submit its instrument of acceptance of the historic new Agreement on Fisheries Subsidies. Switzerland’s action will create real momentum for more WTO members to formally accept the Agreement. Given that the landmark agreement was adopted during the 12th Ministerial Conference in 2022 held in Geneva, the location of the WTO, Switzerland is a fitting pioneer in the acceptance process, allowing the WTO to finally deliver our contribution to safeguarding global fish stocks and the livelihood and food security of millions of people worldwide.”
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SA mining output tanks 9% in year to November as power and other woes bite (Daily Maverick)
On an annual basis, the 9% fall in South African mining output in November points to an overall contraction in output for 2022. The Minerals Council SA, the main industry group representing mining companies, said last week that it estimated South African mining production declined 6% last year. November marked the 10th consecutive monthly annual output decline in the sector, and it was the first month since June in which mineral sales fell on a yearly basis. Annual mineral sales had been rising, even as output fell, because of prices and time lags between output and sales.
Wine export volumes hold up despite port challenges, cost pressures (Engineering News)
The main reason for the decline in export volumes year-on-year is shipping constraints at the Port of Cape Town, particularly during what had been an extended period of adverse weather conditions, which prevented ships from docking during most of April. The two-week strike at Transnet’s operations in October last year also hampered wine export volumes.
The South African wine industry exported 368-million litres of wine, valued at R9.9-billion, in 2022. Exports were 5%, or 20-million litres, lower than in 2021. The value of exports in 2022 was also lower compared with R10.2-billion worth of wine exports in 2021. However, Wines of South Africa (WoSA) deems it positive that export value only decreased by 2.4%, while the rand per litre on the whole showed marginal growth as producers navigated rising costs, shipping challenges and shortages in the supply of packaging goods.
Tanzania registers record $63 million diamond exports (The East African)
Tanzania diamond exports increased significantly to $63.1 million (Sh147.46 billion) by November 2022, the Bank of Tanzania has revealed.This is more than seven times of the $8.4 million (Sh19.63 billion) export value that was recorded in the year to November 2021. The good performance has been attributed to the country’s diamond producer Williamson Mines which is currently under suspension.
Rwanda’s economy to grow at 7.8 percent in 2023 – AfDB (The New Times)
The Ministry of Finance implied that the economy grew by 6.8 percent in 2022. In a report on Africa’s Macroeconomic Performance and Outlook released on January 19, the continental development bank says Rwanda will lead economic growth in the region mainly due to higher infrastructure spending.
2023 Economic Outlook For Nigeria (Business Post Nigeria)
In conjunction with the IMF/World Bank annual meetings, forecasts released at the July World Economic Outlook in 2022 projected Nigeria’s inflation to fall to 17% and an increase in its Gross Domestic Product GDP by 3.4% in 2022 and 3.2% in 2023. Reprojected in October’s World Economic Outlook, Nigeria’s GDP is projected to drop to 3.2% in 2023, with a difference of 0.2% in the July 2022 projection. The IMF estimates that by 2023, Nigeria’s inflation will have decreased to 17% from a projected 19%.
According to the African Development Bank Group (AFDB), growth will slow, averaging 3.2% from 2022 to 2023, because of the continued low oil production and rising insecurity. The conflict between Russia and Ukraine, rising food, gas, and diesel costs, and continuous supply disruptions are all anticipated to play a part in keeping inflation high in 2022 at 16.9% and above pre-pandemic levels in 2023.
While oil exports are anticipated to slightly increase and capital inflows to rebound, an expected positive oil price shock on exports may be substantially outweighed by a poor output effect caused by lower oil production, which is fueled by inadequate infrastructure and increased insecurity.
Increasing the share of manufactured goods in total exports would be beneficial to least developed countries (LDCs), but achieving industrial growth remains elusive. This goal can be jeopardized by the increasing use of trade policy measures to achieve climate or environmental goals. While these goals are legitimate, uncoordinated measures by systemically important traders can have adverse consequences for LDCs.
To attenuate them, these traders should adopt special measures to help LDCs adapt to the evolving international regulatory scene. LDCs should invest more on upgrading their productive capacities and intensify trade with regional markets.
The Utilization of Trade Preferences by COMESA Member States (UNCTAD)
Governments are increasingly negotiating Free Trade Agreements (FTAs) and mega-regionals to create and expand market access for their economies. The African Continental Free Trade Area (AfCFTA) is the latest attempt in the region. Only recently, Governments have realized the importance of using utilization rates to monitor the effective use of FTAs by their firms. The utilization of trade preferences is an instrument to measure how firms effectively use an FTA. As such, it is an essential tool that assists policymakers and administrations in establishing the effectiveness of trade agreements; and firms to realize the extent of the missed trade opportunities.
This study stems from a long-standing relationship between the Common Market for Eastern and Southern Africa (COMESA) and the UNCTAD Secretariat in trade and trade facilitation.
It aims at shedding light on one important aspect of regional integration, namely, the effective use of the trade preferences provided by free trade agreements (FTAs) such as the COMESA FTA and other preferential trade arrangements (PTAs) granted by QUAD Developed countries1 such as AGOA, EBA, and GSP preferences.
Morocco targeting 50% renewable use by 2030, PM tells Davos (The Rahnuma-E-Deccan Daily)
Morocco has “become a leader” in sustainable development and is targeting 50 percent reliance on renewable energy by 2030, the country’s prime minister has told a Davos forum. Moroccan Prime Minister Aziz Akhannouch said during a special address on Wednesday: “Renewable energies now account for 38 percent of our energy mix, and our ambition is to reach 50 or 52 percent by 2030.”
Morocco’s strategic position “gives it a place of choice in the value chains of the world,” he said, adding that the country “has one of the most abundant and cheapest resources in the world, which will help in the development of green hydrogen (and) will also play into the de-carbonization of the world.” WEF President Klaus Schwab described Morocco as “a brick in the connection between nations of the world” through its location in Africa, the continent with the fastest growth worldwide.
UK Export Finance has agreed a post-Brexit deal with one of Egypt’s biggest construction and engineering firms, Hassan Allam Holding, to increase cooperation across Africa.
The agreement aims to secure investment into the UK, to promote cooperation on financing projects and encourage trade between the UK and Africa. UKEF has up to £2bn available to support projects in Egypt, as Britain looks to spread its wings after leaving the European Union and trade globally.
Tim Reid, chief executive of UKEF said it “has supported projects in Egypt and across Africa that have transformed local infrastructure and supported livelihoods. We want to build upon these achievements, and this partnership will help us to identify future opportunities in the region where UK exporters can bring substantial benefits.”
AfCFTA is key in cushioning African LDCs from external shocks, says ECA’s Karingi (UNECA)
The Economic Commission for Africa (ECA) is supporting regional trade integration through the African Trade Exchange Platform (ATEX), a platform enabling bulk procurement of commodities. Speaking at a session on integrating regional trade during the regional consultation on LDC5 for Least Developed Countries (LDCs) in Africa and Haiti, ECA Director for Regional Integration and Trade Division, Mr. Stephen Karingi, highlighted the importance of trade within the LDCs of which 33 are in Africa.
“Mirroring Africa more broadly, the LDC’s largely import manufactured products and export goods low along critical value chains like fuel products, ores and metals, and food items,” Mr. Karingi said, expressing concern that current trade patterns have exposed African LDCs to commodity price volatilities and global shocks.
The ATEX trade platform has been established on the back of the establishment of the AfCFTA, which, if fully implemented, is set to accelerate industrialization in Africa and increase the value of intra-African trade by 400 percent and the share of intra-African trade to 26 percent by 2045. This is compared to the share of intra-African trade which was at 15 percent in 2020.
SADC continues to encourage Member States to ratify the Protocol on Industry (SADC)
The Southern African Development Community (SADC) aims to achieve regional integration and eradicate poverty within the Southern African region and to attain these goals, Member States must work together for effective results on common problems and issues. Industrial development is at the centre of SADC’s regional integration agenda alongside competitiveness and market integration. The Regional Indicative Strategic Development Plan (RISDP2020-2030)’s endeavour has to strengthen this position by ensuring that industrialisation-related initiatives are front-loaded. The SADC Industrialisation Strategy and Roadmap (SISR 2015-2063) also aims to promote SADC’s economy and deepen regional integration through structural transformation.
As of December 2022, only five Member States had ratified, namely Angola, Botswana, Namibia, Seychelles, and Mauritius. The success of the Industry Protocol depends on the involvement of all SADC Member States to take advantage of the economies of scale that accompany a high number of Member States involved in executing activities associated with the Protocol.
Non-ratification of AU treaties slows down Africa flagship projects' implementation (The East African)
After many years of adoption, several treaties negotiated and agreed upon at African Union (AU) level remain on paper amid lack of required threshold of ratifications by the member States to pave the way for their domestication and subsequent implementation.Lack of political will has also been singled out as the reason treaties and decisions adopted at continental level cannot enter into force or are not binding in many countries, definitely denying millions of people across the continent a chance to claim rights enshrined in these policy frameworks.
Africa is set to outperform the rest of the world in economic growth over the next two years, with real gross domestic product (GDP) averaging around 4% in 2023 and 2024. This is higher than projected global averages of 2.7% and 3.2%, the African Development Bank Group said in Africa’s Macroeconomic Performance and Outlook report for the region, released in Abidjan on Thursday.
With a comprehensive regional growth analysis, the report shows that all the continent’s five regions remain resilient with a steady outlook for the medium-term, despite facing significant headwinds due to global socio-economic shocks. It also identified potential risks and called for robust monetary and fiscal measures, backed by structural policies, to address them.
In remarks during the launch, African Development Bank Group President Dr. Akinwumi Adesina said the release of the new report came at a time when African economies, faced with significant headwinds, were proving their resilience.
“With 54 countries at different stages of growth, different economic structures, and diverse resource endowments, the pass-through effects of global shocks always differ by region and by country. Slowing global demand, tighter financial conditions, and disrupted supply chains therefore had differentiated impacts on African economies,” he said. “Despite the confluence of multiple shocks, growth across all five African regions was positive in 2022—and the outlook for 2023–24 is projected to be stable.”
African countries have been asked to provide investment incentives to businesses operating in the agribusiness, green and blue economy in order to reduce the soaring costs of basic foodstuffs coupled with rising inflation in Africa. African Governments have further been urged to facilitate access to capital and crowd-funding to support SMEs in Africa, through the use of Government Guarantee Funds (GGFs) and Privately Driven Guarantee Funds (PDGFs) including subsidizing agricultural production for key sectors such as cereals, vegetable, and palm oil to reduce the costs of production to enhance global competitiveness.
“The economic prospects for Africa in 2023 look promising, Africa is coming out as resilient and is bound to transform the three major sectors of economic activities into a much more sustainable economic model; the extraction of raw materials (primary), the manufacturing sector (secondary) and the service industries (tertiary sector),” he said.
As Kenya, Tanzania battle for logistical superiority, inland EAC countries benefit (The Observer)
Before Kenya and Tanzania realise the fruits of their economic competition for the East and Central African logistics market, the inland countries are the major beneficiaries sooner than later. The two coastal countries have in recent years intensified efforts to improve their infrastructure networks, both hard and soft, targeting landlocked countries in Uganda, Burundi, Rwanda and South Sudan, and more recently, the Democratic Republic of Congo (DRC).
Ugandan imports account for more than 25 per cent of Mombasa's transit cargo business, while South Sudan's imports take another 9 per cent. However, Kenya's Mombasa port is poised to lose a big chunk of the trade volume attributed to South Sudan, as Juba pursues alternative routes.
Here's how Africa can get back on the growth trajectory (WEF)
Could Africa be on the cusp of another long stretch of growth? Perhaps. The last sustained stretch took place in the first part of the 21st Century. Since then, the continent has experienced growth in fits and starts, with changing priorities, shifting bilateral alliances and global ‘polycrises’ coming into play.
All things considered, the 54 nations on the continent, despite a well-documented list of setbacks, hold the capacity to develop while shielding their populations from socioeconomic shocks. But what will it take? And what stands in the way?
WEF Day 3 report: Guterres' plea, trade not aid and Africa's jobs conundrum - African Business (African Business)
On the third day of the World Economic Forum’s annual meeting in Davos, the secretary-general of the United Nations, António Guterres, called for deeper global cooperation and a greater role for the private sector as the world grapples with a period unprecedented crises.
Guterres said the world faces “a category five” storm of challenges that need urgent action. These include the risk of recession and economic slowdown, rising inequality, the cost of living crisis –especially for women and girls – and the disruption in global supply chains. Other challenges highlighted by Guterres are rising inflation, interest rates and debt levels that are straining the economies of poorer countries.
These challenges are compounded by accelerating climate change and the lack of preparedness for a future pandemic, even as the last one, Covid-19, still lingers.
Russia’s invasion of Ukraine, which he said was in violation of international law, has also added to global turmoil, increasing the uncertainty around food and energy security, trade and nuclear safety. All these problems are interlinked, he said, adding that “it will be difficult to find solutions at the best of times and when the world is united, but these are not the best of times and the world is far from united”.
Once dominated by aid, discussions around developing Africa now focus to a much larger extent on investment – even when they feature high profile representatives of aid organisations. A panel discussion examined how investment and aid can be best deployed into frontier markets, and the roles that aid organisations can play in collaboration with governments and the private sector.
The hesitation that some investors have about Africa has been attributed to the policy environment in the continent. However, according to Vera Songwe, many countries in the continent have now adopted the reforms necessary to support investment. “Frontier markets are the most profitable these days but because of the perception of risk, they look difficult to break into,” she said.
Samaila Zubairu, who said many countries have made structural changes to their economies and are now ready to absorb capital investments. However, capital remains elusive to many frontier economies. The approach of the AFC, he said, has been to support the provision of infrastructure that
5 step-guide to shape the future of global industrial strategies (WEF)
It goes without saying that 2022 was a challenging year on many fronts. Climate change, wars and conflicts, hunger and a global energy crisis following hard on the heels of the COVID-19 pandemic, with the poorest suffering the worst impacts.
These challenges are all symptoms of long-term, underlying megatrends. We are seeing threats emerge at an unprecedented scale and pace. Meeting these challenges head-on will require all the resources at our disposal.
For a successful transition to a more stable and resilient global economy, we need more than simple, short-term “emergency measures”. Accelerating progress towards Sustainable Development Goal (SDG) 9 – encompassing industry, innovation and infrastructure – has never been more crucial and requires a new way of thinking about industrial strategies.
Trade and Climate: EU and partner countries launch the ‘Coalition of Trade Ministers on Climate' (European Commission)
the European Commission, EU Member States, and 26 partners countries will launch “The Coalition of Trade Ministers on Climate”, the first Ministerial-level global forum dedicated to trade and climate and sustainable development issues. The Coalition will foster global action to promote trade policies that can help address climate change through local and global initiatives.
The Coalition aims to build partnerships between trade and climate communities to identify the ways in which trade policy can contribute to addressing climate change. It will promote trade and investment in goods, services and technologies that help mitigate and adapt to climate change.
A prominent element of the Coalition's agenda is to identify ways in which trade policies can support the most vulnerable developing and least developed countries that face the greatest risks from climate change.
G20's Think 20 summit concludes with Bhopal Declaration (The Siasat Daily)
The two-day Think 20 convention which was being held under the aegis of G20 concluded in Bhopal on Tuesday. Conclusion of the convention was marked by issuance of the Bhopal Declaration and a review of the last ten declarations of G20 as well. The key recommendations of the Bhopal Declaration include the need for development transformation to support transitions towards ‘Global South and Global Governance for LiFE (Lifestyle for Environment), and responsible consumption.
The subjects related to trade, triangular cooperation, climate change, environment, financing, sustainable development goals, inclusive model for development, changing geo-political scenario etc. dominated the various sessions of the two day Think 20 meeting organised under the aegis of G20.
In the plenary session 5, South Asia Watch on Trade, Economics and Environment (SAWTEE), Nepal Chairman Dr. Posh Raj Pandey threw light on the adverse impact of changing geopolitical, geo-economic environment on trade and value chain.
Advanced technology, reducing the cost of communication and transport systems along with universal access to digitization will be helpful in empowering the value chain, said Pandey. He also stressed on South-South, North-South triangular cooperation.
Oluseun Andrew Ishola, from Centre for Management Development (CMD), Nigeria was of the opinion that promoting global business in a participatory environment rather than a competitive one is the need of the hour.
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Niger 2022 Article IV Consultation and Second Review under the Extended Credit Facility (IMF)
Niger’s political landscape is broadly stable, but the country continues to face daunting development challenges against a backdrop of fragility, which are exacerbated by a decade of conflict in the Sahel and exposure to climate shocks. Low rainfall in 2021, pushed an estimated 4.4 million people into acute food insecurity this year. Russia’s war in Ukraine added to food, petroleum, and fertilizer price pressures. Economic growth is projected to accelerate from 1.4 percent in 2021 to 7.1 percent this year, driven by private investment and the recovery in agriculture. While debt vulnerabilities have increased, the updated DSA deems debt as sustainable, and the risk of external and overall debt distress is still rated “moderate”.
Working group meets to discuss AU-AfDB study on driving inclusive growth in Africa (AfDB)
The African Union Commission (AUC) and the African Development Bank Group have a concluded a technical session on how to conduct an upcoming joint study on driving development in Africa. The goal of the study, titled Key Actions to Drive Inclusive Growth and Sustainable Development in Africa, is to identify key actions that will allow Africa to rise and remain at a growth level of 7% GDP.
The meeting, held from 12 -13 January 2023, brought together global experts in economic development theory and practice.
Acting Chief Economist and Vice President for Economic Governance and Knowledge Management of the African Development Bank Group, Professor Kevin Chika Urama told participants that Africa needs a new path to inclusive growth and sustainable development over the next three to four decades if the continent is to transition from low to high-income status.
He told the experts that Africa has the potential to achieve these goals and has a lot of strategies and policies to achieve them but has not been able to sustain growth rates at the levels required to sufficiently create decent jobs for citizens and achieve the structural transformation required to eradicate poverty in countries.
Despite the many challenges - structural, governance and sectoral issues that need to be addressed- Urama remains optimistic that the study results, backed by the leadership of the African Union Commission and the Bank Group, will lead to the desired outcomes. “There are several examples of successes in Africa and elsewhere to draw on as case studies to inform actionable, implementable, and transformative recommendations from the study,” Urama said.
Second international summit on food production in Africa to open in Dakar (AfDB)
African heads of state and government together with development partners will gather in Senegal to strategically map plans to unlock Africa’s food-producing potential and position the continent to become a breadbasket to the world. President Macky Sall of Senegal, and Chairperson of the African Union, will host the three-day Dakar II Food summit from 25 January, with the African Development Bank Group as co-host.
The agenda of the Summit whose theme is, Feed Africa: Food Sovereignty and Resilience, is the improvement of Africa’s food nutrition and security; leveraging the continent’s huge agricultural resources; boosting international trade, expanding market share, and production and processing value addition. The continent is home to a third of the world’s 850 million people living with hunger.
With the removal of barriers to agricultural development aided by new investments, Africa’s agricultural output could increase from $280 billion per year to $1 trillion by 2030.
Traders get two weeks to export avocado in off-season period (Business Daily)
The Horticulture Directorate has opened a two-week window for the export of off-season mature avocados following the closure of exports in November last year. The move is to allow farmers and orchards that have mature avocados to export the fruits within the issued time frame. Head of the directorate Benjamin Tito said the survey conducted in the first week of January showed that there is at least 10-35 percent of mature avocado in the east of Rift and 10-30 percent in the west of Rift, which needs to be exported.
The main season for the export of avocado starts on March 15 this year, and this has compelled the regulator to offer relief to exporters who have ready fruits.
The exporters are required to apply to the directorate for field inspection and approval before harvesting. The move is aimed at curbing the export of immature crops that have previously had a negative impact on Kenya’s export markets, risking a ban on the country’s produce.
Global steel prices increase 30pc over low production (Business Daily)
Global steel prices have increased 29.5 percent in three months amid declined production indicating a spike in the cost of constructing houses and other infrastructure.
This comes amid a slowed global crude steel production, especially in China, which is the top-producing nation at 52 percent of international output, and the leading import source market for Kenya.
The rise is expected to increase costs for developers, home buyers and infrastructure projects while further bogging down the construction sector, according to the Architectural Association of Kenya (AAK).”That means an increase in the cost of construction, which is transferred to the end user as our rates suffer because of international prices. It could also affect projects such as affordable housing and infrastructure unless the government waives some of the costs,” said Patience Mulondo from AAK.
Kenya remains a net importer of raw steel mainly from China and India with local companies manufacturing various finished products.
Wheat prices to remain high on sharp drop in production (Business Daily)
The price of wheat is expected to remain high following a sharp decline in the production of the commodity in Ukraine, one of the world’s top exporters. Production of grain in Ukraine has dropped to 65 million tonnes in the latest crop season from 108 million tonnes a year earlier, according to an official.
The decline, according to officials, has been attributed to a number of factors including high prices of fertiliser and war that interrupted farming activities.
The prices of wheat globally had shot to a high of $540 at the peak of the war between the two countries last year as the grain supply was cut short with the closure of the Black Sea corridor- a major grain route for grain to the world market. However, a United Nations-brokered deal saw the corridor opened in June with another extension issued in November, a move that helped to ease global prices that have now settled at $370 a tonne.
The official said that it is important for the corridor to remain open even with the ongoing aggression because of the key role that it plays in the world’s food security.
Sh3bn revamp of Kisumu port starts paying dividends (Business Daily)
The Sh3 billion rehabilitation of the Kisumu inland port has started paying dividends following the start of MV Uhuru 1 wagon ferry operations, which is eyeing the Uganda petroleum trade. With a capacity to ship over a million litres of fuel to the landlocked country, the historic vessel built in 1966 has rekindled the fortunes of Lake Victoria as a viable transportation route.
The vessel, which was officially relaunched by former President Uhuru Kenyatta in 2019 can make up to 10 round trips in a month.
The port has also been equipped with forklift trucks, mobile cranes and tractor-trailers ready for imports and exports business.
Members of the private sector in Africa have called for the completion of negotiations on schedule of tariff offers, finalisation of work on Rules of Origin, full operationalisation of the Pan African Payment Platform and the speedy resolution of all outstanding issues germane to the effective implementation of Africa Continental Free Trade Area (AfCFTA). They made the call yesterday at the Lighting of the Africa Trade Torch for the implementation of AfCFTA, held in Zambia and other member state countries simultaneously.
The President of Pan-African Manufacturers Association (PAMA), Francis Meshioye, called for support for the African Union and AfCFTA Secretariat in the quest to evolve strategic approaches that will ensure trading in the AfCFTA corridor stimulates inclusive development in Africa through a strategic framework.
The framework is expected to facilitate inflow of investment into the continent, ensure upscaling of trade in manufactured goods through improved industrial capacity, as well as inclusion of women, youth, innovation and technology development in the implementation roadmap.
Others include addressing macroeconomic environment, poor competitiveness and dearth of trade facilitation infrastructure prevailing in many African countries, deliberate development of industrial inputs to reduce the intensity of reliance on the global supply chain, intentionally bringing down all the historical physical borders in Africa, facilitating peaceful co-existence and security of lives and property, as well as effective support for all organised private sector organisations in Africa.
He said the private sector plays a critical role in transforming trade in Africa, even as he affirmed their commitment to the seamless operationalization of AfCFTA.
Secretary-General Calls Group of 77 Developing Countries and China Multilateralism in Action (UN)
As we begin 2023, we must be brutally honest. Our world faces a series of difficult and deeply intertwined challenges. Rising poverty, widening inequalities, a persistent pandemic and a looming global recession.
Food, energy and cost-of-living crises exacerbated by the war in Ukraine. Mounting sovereign debt and a morally bankrupt global financial system that undermines recovery in so many developing countries. Climate chaos, biodiversity loss, conflicts and human rights abuses. And a world that continues to deny women and girls their fundamental rights across every walk of life.
First, we need to re-energize the global economy through massive support to the developing world. Progress towards the Sustainable Development Goals has been thrown dramatically off-track. Rescuing the SDGs [Sustainable Development Goals] means ensuring that developing countries receive massive support to reduce poverty and hunger, and invest in systems like health care, education, social protection, gender equality and renewable energy.
Second, we need real, credible and ambitious climate action. Reminders of the climate emergency are everywhere. Floods, droughts, wildfires and heatwaves have struck countries across the world, hitting the poorest and most vulnerable hardest.
So, 2023 must be focused on two goals -- justice and ambition. We need justice for those who did so little to cause the crisis. An important step towards justice -- thanks in great part to the leadership of the [Group of 77] -- was the decision at COP27 [twenty-seventh Conference of the Parties to the United Nations Framework Convention on Climate Change] to establish a loss and damage fund.
Justice means turning this decision into effective reality. Justice means the delivery of the $100 billion commitment by the developed world. Justice means a clear and credible road map to double adaptation finance. Justice means a successful second replenishment of the Green Climate Fund. And justice means ending the war on nature and supporting developing countries in protecting the ecosystems and species that call them home.
2023 must also be focused on ambition. Ambition to close the emissions gap. And ambition to phase-out coal and accelerate the renewables revolution.
And for that, developed countries must provide -- together with international financial institutions and the private sector -- the financial and technical assistance that is needed to help major emerging economies accelerate their renewable energy transition.
And third -- we need to use the many global gatherings this year to re-energize progress towards the Sustainable Development Goals.
The UN-brokered Black Sea Grain Initiative signed last July along with a Memorandum of Understanding, aimed at suppling markets with food and fertilizer amid global shortages and rising prices exacerbated by the Ukraine war, has now allowed 17.8 million tonnes to reach millions in need worldwide.
The critical food supplies, mostly from farms in Ukraine heavily disrupted by the continued fighting in the wake of Russia’s full-scale invasion last year, have reached 43 countries since August – more than 40 per cent of them low and middle-income nations, the initiative’s Joint Coordination Centre (JCC) said in a Note to Correspondents on Wednesday.
In December, exports through Ukraine’s Black Sea ports rose to 3.7 million metric tonnes, up from 2.6 million in November, and in just the last two weeks, nearly 1.2 million metric tonnes have left port. “However, unfavourable weather conditions both in Odesa ports as well as in Turkish inspection areas have curbed some movements in the last week”, the JCC said.
To date, China has led the way in terms of receiving exports through the grain deal mechanism, based in Turkey’s largest city - the gateway to Asia and Europe, Istanbul. Spain has been the second most common destination, with Türkiye itself, third. Nearly 44 per cent of the wheat exported has been shipped to low and lower-middle income countries – 64 per cent to developing economies, the JCC reported.
US, DRC and Zambia sign MoU to strengthen EV battery value chain (Engineering News)
The US has signed a memorandum of understanding (MoU) with the Democratic Republic of Congo (DRC) and Zambia to strengthen electric vehicle (EV) battery value chains. Under the terms of the MoU, the US will support the commitment between the DRC and Zambia to develop jointly a supply chain for EV batteries.
The MoU, signed during the US-Africa Leaders Summit in December, supports the DRC’s and Zambia’s goal of building a productive supply chain, from the mine to the assembly line, while also committing to respect international standards to prevent, detect and take legal action to fight corruption throughout this process.
The DRC produces more than 70% of the world’s cobalt, and Zambia is the world’s sixth-largest copper producer and the second-largest cobalt producer in Africa. These resources, and this commitment to cooperation, are crucial components of the urgently needed global energy transition.
Full operationalisation of afcfta will promote html (Modern Ghana)
Principal Policy Advisor of the Economic Commission of Africa, Joseph Atta-Mensah has called for the removal of the VISA requirements among African countries. According to him, the free movement of people on the continent is necessary to propel the economic growth of Africa. Mr Atta-Mensah called for this rectification when discussing the topic ‘Africa Prosperity Dialogues: All you need to Know” on Accra-based Asaase Radio.
Mr Atta-Mensah further urged business owners in Ghana to embrace the newly-established African Continental Free Trade Area (AfCFTA) which has its office situated in the country.
New twist for EAC monetary body timeline (The Citizen)
The East African Community (EAC) has issued a new date for the setting up of its monetary body that will spearhead the single currency project. This time around the regional organisation said the East African Monetary Institute (EAMI) is to be established this year.
EAMI will be tasked to pave the way for the single currency economy in the seven nation economic bloc. The region now plans to have a single currency regime in four year’s time, as revealed by the EAC boss, Dr Peter Mathuki.
Although the single currency is set for adoption in four years, EAMI will be in place this year “to allow us to harmonise member states’ fiscal and monetary policies.”
The single currency is one of the projects earmarked for implementation under the East African Monetary Union Protocol. It is aimed to ease business and movement of persons within the region as envisioned in the Common Market Protocol.
Why EAC is eager to admit Somalia to the regional bloc (The Citizen)
After connecting the Indian Ocean and the Atlantic Ocean through the admission of DR Congo, the East African Community (EAC) is now eyeing one of the longest coastlines in Africa. The drive to admit Somalia into the bloc aims to bring under control the Horn of Africa coast line that is abundantly rich in fisheries.
Somalia’s long Indian Ocean/Red Sea route that links the EA region to the Arabian Peninsula is seen as a vibrant economic zone. “It will bring immense benefits for the EAC through the exploitation of Somalia’s blue economy resources such as fish,” said the EAC secretary general, Peter Mathuki.
India to play crucial role in technology sector in G20 (Rising Kashmir)
India has a crucial role to play in its G20 presidency in the technology sector. As a country with a strong focus on technology and innovations, it has a significant role to play in bridging the digital divide. Harsh Shringla, India’s Chief Coordinator for G20, earlier said the principle of data for development will be an integral part of the overall theme of India’s presidency of the group of the world’s developed and emerging economies.
Shringla said that it was important to focus on the benefits that technological progress and evidence-based policy can provide when it comes to expanding access to healthcare and nutrition.
As G20 president, India now has the opportunity to extend its digital revolution to low and middle-income countries, which still face a significant digital divide.
CS Miano calls for new, bold ideas to tackle drought (The Star)
East African Community, ASALs and Regional Development CS Rebecca Miano has called for new and bold ideas to tackle the drought that has continued to hit various parts of the country.Miano spoke during a high-level meeting organised by the National Drought Management Authority and USAID to develop phase two of the ending drought emergencies strategy.The meeting brought together local and international experts from various sectors to come up with a strategy to address the perennial drought problem in Kenya and the region.
The experts are expected to come up with strategies and a framework to address drought emergencies going into the future.
Exploring Multilateral Platforms for Cross Border Payments (IMF)
This report provides an assessment of whether and how multilateral platforms could bring meaningful improvements to the cross-border payments ecosystem. It was written by the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) in collaboration with the BIS Innovation Hub, the International Monetary Fund (IMF) and the World Bank. The report analyses the potential costs and benefits of these platforms and how they might alleviate some of the cross-border payment frictions. It also evaluates the risks, barriers and challenges to establishing multilateral platforms and explores two paths for their evolution. The analysis is based on a stocktake, conducted by the CPMI, of existing and potential multilateral platforms as well as bilateral discussions with existing platform operators.
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tralac Daily News
The support that government provides to black-owned companies operating in the poultry industry will contribute significantly in transforming the industry and ensuring that there is food security in the country. However, it is imperative for government to realise that the sustainability of these businesses depends on black companies occupying the entire value chain of the industry. This is the view of the 37-year-old North West industrialist, Mr Ofentse Moloko.
Baramakama received support to the tune of R50 million from the Department of Trade, Industry and Competition (the dtic) and its development finance institution, the Industrial Development Corporation (IDC), as part of the Black Industrialists Programme. The programme is part of government’s efforts to accelerate the quantitative and qualitative increase and participation of Black Industrialists in the South African economy, selected industrial sectors and value chains.
“The government support needs to cut across the value chain if we want meaningful transformation of the industry, and if we want the Black Industrialists to play an important and discernible role in food security in the country. This includes feed production, hatcheries, abattoirs, chick rearing, processing, as well as market access. Although we regard ourselves as a success after obtaining the support, we are left at the mercy of our key competitors from whom we source feed and hens. That makes us vulnerable as the supply tabs can and are regularly switched on and off depending on how they want to control and benefit from the market conditions,” adds Moloko.
Moloko does not pin all his hopes on the Poultry Sector Master Plan, which was developed in close partnership between government and several stakeholders in the industry, including poultry producers, processors, exporters, importers and organised labour. One of the objectives of the plan is to increase the level of black participation and particularly ownership across the value chain and increase employment and worker share-ownership in the sector.
Moloko believes that most strategic decisions taken within the Poultry Master Plan depend much on the existing large players in the industry, who through their actions do not easily allow black players into the more profitable value chain channels. But he remains resolute and hopeful that with more black players in the value chain, the industry will not only transform, but allow healthy competition to the benefit of all participants.
Rising prices push consumers to the brink (New Era)
Comparative consumer prices for the festive season, December 2022, increased to 6.9% when matched to 4.5%, recorded in December 2021. This is an increase of 2.4 percentage points on the pocket, with the main contributors being transport and food and non-alcoholic beverages, which both recorded 2.2 percentage point increases. The monthly inflation rate increased by 0.3%, compared to 0.5% registered a month earlier.
These figures were released by the Namibia Statistics Agency (NSA) last week in the Namibia Consumer Price Index (NCPI) for December 2022. The highest changes in the annual inflation rate were mainly witnessed in the categories of transport (14.8%); food and non-alcoholic beverages (11.8%); hotels, cafes and restaurants (11.7%); furnishings, household equipment and routine maintenance of the house (10.6%); recreation and culture (5.6%), and miscellaneous goods and services (4.5%).
The astronomical increase in prices for household oils and fats takes a toll on informal traders, especially those in the vetkoek business, who derive the majority from informal trading.
Mining sector employment grow by 96 per cent (Daily News)
EMPLOYMENT in the mining sector has grown by 96 per cent to over six million people, thanks to the changes in the 2017 Mining Law. The changes in the mining laws that included also the adoption of the Local Content regulations have made the local purchases reach 92 per cent. The Mining Commission Executive Secretary, Yahya Samamba said in Dodoma recently that the changes in the mining laws have contributed to the sector’s growth and its contribution to the Gross Domestic Product. “Before changes in the mining laws, most mining companies were employing many foreign nationals even in jobs that could be done by Tanzanians,” he said.
He added, the situation led the government to make changes in the mining laws to increase the participation of Tanzanians in the mining economy through employment, provision of services in the mines such as food and the distribution of mining equipment. He added that the changes also led to an increase in local purchases up to 92 per cent compared to less than 50 per cent before the changes in mining laws where most of the products were imported even though they were available in the country.
SMEs policy under review, Minister says (Daily News)
THE government is undertaking a review of policy for Small and Medium Enterprises (SMEs) to cope with the existing investment environment in the country. The Deputy Minister for Investment, Industry and Trade, Mr Exaud Kigae said in a statement that they were in a dialogue to discuss how to continue improving investment relations between Tanzania and the United Kingdom (UK). The dialogue that was coordinated by the Tanzania Investment Centre (TIC), also discussed the progress achieved by Tanzania in improving the business and investment environment, as well as identifying the challenging areas that require rapidity to ensure the country attracts more investors.
“In effort to create an enabling environment for investors, the ministry is reviewing various policies including SMEs policy, to ensure they correspond to existing investment needs,” Mr Kigae said. In the same line, the deputy minister also noted that the government will continue to set specific strategies for the execution of the reviewed policies. Tanzania SMEs Development Policy was developed in 2003, focusing on competitiveness, upgrading and partnership unit, business, investment and technology.
Private sector should gain in the next Budget (Monitor)
From Covid-19 to double digit inflation coupled with external factors such as Ebola and the geopolitical conflict in Eastern Europe (Russia-Ukraine war) which brought about imported inflation, subdued global growth, Uganda’s economy has been in turmoil. This three-some tragedy has led to slower economic growth and overall development in Uganda.
To avert slowdown in economic growth, the Finance Ministry says the overall objective of the FY 2023/24 Budget Strategy is to restore the economy back to the medium-term growth path of 6-7 percent per annum and improve the economy’s competitiveness. The Finance Ministry says in the Budget Framework Paper for Financial Year 2023/24 in the medium-term, increasing the wealth of households and eliminating poverty, particularly using the Parish Development Model and small and medium enterprises economic recovery programmes is key for socioeconomic transformation. In addition, diversifying the economy and Uganda’s exports are key to achieving the planned economic growth trajectory.
Nigeria leads Africa as the highest generator importer (Nairametrics)
The International Renewable Energy Agency (IRENA) said Nigeria is the highest premium motor spirit (PMS) and diesel generator importer in Africa. The agency disclosed this in a new report developed in partnership with the Energy Commission of Nigeria (ECN) and titled ’Renewable Energy Roadmap: Nigeria’.
The IRENA report also revealed that Nigeria’s on-grid generation is dominated by natural gas power stations at 86% and large hydropower plants at 14%. However, unavailability of gas, machine breakdowns, seasonal water shortages and limited grid capacity have severely limited the operational performance of these power plants, thus affecting the power supply.
As Nigeria struggles with power supply access, stakeholders in the sector insist that alongside other challenges, lack of financing is a major issue that needs to be tackled to power the country for the benefit of its over 200 million inhabitants.
According to IRENA, the low rate of power infrastructure and capacity in Nigeria, provides a context for a paradigm shift towards renewable energy. IRENA says that Nigeria has much to gain from pivoting towards domestic renewable energy sources in place of domestic fossil fuels.
Why China and Egypt Are Growing Closer (Foreign Policy)
As the Egyptian economy falters, Sisi is turning to the Chinese government for support.
Last month, Cairo agreed on a $3 billion bailout package with the International Monetary Fund. China stands to lose if Egypt’s economy were to collapse, given the level of trade between the two countries and because China is the heaviest user of the Suez Canal—a crucial link for shipping its goods to Europe.
Qin underscored Beijing’s commitment to help boost Egypt’s economy through the import of Egyptian products and the increase of Chinese tourists to Egypt, a major source of revenue for the country, which significantly struggled during the pandemic but has gradually recovered despite a drop in the number of Chinese travelers.
On Sunday, China’s new foreign minister, Qin Gang, ended his five-nation African tour in Egypt, where he held separate meetings with Egyptian President Abdel Fattah al-Sisi and Arab League Secretary-General Ahmed Aboul-Gheit. The visit came at a precarious moment for Egypt’s economy and currency, which the government has allowed to drop precipitously—17 percent since Jan. 1 and 50 percent in the last 10 months—in an apparent newfound embrace of a flexible exchange rate policy.
As the United States seeks to regain influence across Africa, China has been reaffirming its ties with the continent as well as looking outward toward the Middle East. “China appreciates Egypt’s decision to welcome Chinese tourists. We believe that in the near future, the number of Chinese tourists and flights to Egypt will return to or even surpass the pre-pandemic level,” Chinese foreign ministry spokesperson Wang Wenbin told reporters at a news briefing in Beijing on Monday.
Liberia: Govt Suspends Tariffs on Rice and Other Commodities (FrontPageAfrica)
President George Manneh Weah has issued two Executive Orders affecting critical national issues germane to the security and well-being of citizens. President on Friday, January 6, 2023, issued Executive Order #113 suspended the import tariff on rice, and Executive Order #114 established the West African Police Information System (WAPIS). Executive Order #113 is in consideration of the expiration of Executive Order #105 and the government’s commitment to ensuring that the prices of certain basic commodities on the market are affordable, and do not impose an unnecessary burden on the citizens.
“Now, therefore, the government of Liberia in its desire to continue bringing relief to the public, hereby issues this Executive Order #113, suspending import tariff on rice as classified under tariff Nos 1005.30,00 (in packing of more than 5kg or bulk); 1006.30.00 (in packing of at least 5kg); and 1006.40.00 (broken rice) under the Revenue Code of Liberia Act with immediate effect,” asserts the President.
According to President Weah, based on the findings of the assessment, the government has seen the need to curb “the continuous increase in the price of rice, to make it affordable to the public for purchase”.
AfCFTA: ‘Africa Must Dismantle Tariff Barriers Hindering Continental Trade’ (Leadership News)
To harness the potentials inherent in African Continental Free Trade Agreement (AfCFTA), African countries in West, Central Africa sub-region must fast-track the dismantling of various tariff and non-tariff barriers hindering intra-Africa trade.
Speaking at the ongoing the 9th United African Shippers’ Council (UASC), meeting holding in Lagos, tagged ‘African Continental Free Trade Agreement: A veritable platform for African Shippers to Mainstream into global trade’, the executive secretary, Nigerian Shippers’ Council (NSC), Hon. Emmanuel Jime, said African leaders must embrace tariff liberalisation for intra African trade to thrive.
According to him, trading within African countries is presently at a paltry 11 per cent while Africa’s trade to global trade is at ridiculous per cent. He, however, advised that re-orientation and re-organization of intra-Africa trade should start from West and Central Africa sub-region, saying should the region get it right, it will be easier for other sub-region in the African continent to trade among themselves.
“We need to create smooth integration of our transport infrastructures and trade policies as well as the required awareness among the economic operators in the sub-region. There is need to sensitise our various governments to fast track the dismantling of various tariff and non-tariff barriers that are hindering international trade. We should always look at the holistic impact which tariff liberalization would have on our economy rather than just considering the immediate shortfall.”
Implementing the AfCFTA Agreement will boost intra-African trade and industrialization (UNECA)
The implementation of the African Continental Free Trade Area (AfCFTA) should be expedited as the free trade zone will boost intra-African trade and accelerate industrialization, the Economic Commission for Africa (ECA) Acting Executive Secretary, Mr. Antonio Pedros, has urged. “While the AfCFTA’s promise is high, that promise can be realized only if the Agreement is implemented efficiently,” Mr. Pedro said, admitting that implementing the AfCFTA Agreement and supporting African economies, particularly Least Developed Countries (LDCs), was no small task.
In remarks at the opening of the Regional consultation on LDC5 for LDCs in Africa and Haiti, Mr. Pedros said the Doha Programme of Action for Least Developed Countries was timely for Africa whose economies have been impacted by the Covid pandemic and the Ukraine war.
AfCFTA: FG Calls for Trade Liberalization, Inter-Regional Synergy to Reap Benefits (This Day)
Esther Oluku President Muhammadu Buhari, has called for trade liberalization and deepening in inter-regional synergy to reap the benefits of the African Continental Free Trade Agreement (AfCFTA). Speaking at the 9th edition of the African Shippers’ Day held in Lagos, the president stated that as African trade moves to a single market window, nations who are party to the agreement must ensure better inter-regional synergy hence stemming the fallbacks in trade as was experience during the Covid19 pandemic.
Ruto, EAC ministers pledge to end trade barriers (The New Times)
Kenyan President William Ruto on Tuesday, January 17 issued a rallying call to regional leaders, citing that it will require joint forces to end the current trade and investment bottlenecks in the region. President Ruto was speaking to the East Africa Community (EAC) council of ministers, during a meeting he hosted in Nairobi, Kenya. “We have a common destiny as East Africa. We must, therefore, work together towards eliminating impediments to trade and investment within the region for the prosperity of the people,” President Ruto said in a tweet.
MPs reject sh1.4b budget for EAC affairs sensitization (New Vision)
Parliament’s budget Committee MPs have rejected a request of sh1.4b from the East African Community Affairs (EAC) Committee meant for sensitization and public awareness by the Ministry of East African Community Affairs in the 2023/2024 financial year. This was during a meeting in which the EAC Committee Chairperson, Noeline Kisembo presented the Budget Framework Paper for the Ministry of East African Community Affairs on Tuesday. January 2023.
She pointed out that the approved funds of sh 720 million are not sufficient enough, saying that one of the main problems facing the Ministry of East African Affairs is visibility.
The 45th Ordinary Session of the PRC begins (AU)
The 45th Ordinary Session of the Permanent Representatives’ Committee (PRC) kicked off on 16 January 2023, in preparation for the 42nd Ordinary Session of the Executive Council and the 36th Ordinary Session of the Assembly of the African Union (AU) to be held from the 15-19 February 2023.
Addressing the ambassadors in his opening remarks, the Chairperson of the AU Commission, H.E. Moussa Faki Mahamat noted the resilience of the members of PRC and the Commission in the new working method imposed by the COVID-19 pandemic that is to work virtually.
The official opening ceremony of the 45th Ordinary Session of the PRC meeting, was attended by the Deputy Chairperson of the Commission, the AU Commissioners, representatives from AU organs and AU officials.
Until 27th January, the ambassadors will consider different reports including: the activities of the PRC Sub-Committees, reports of the Specialized Technical Committees (STCs) held in the year 2022, the reports of the AU Commission, the Annual report on the implementation of activities on the roadmap of the AU theme of the year 2022 on nutrition, the evaluation report of the First-Ten Year Implementation Plan (FTYIP) of Agenda 2063 and the development of the Agenda’s Second-Ten Year Implementation Plan (STYIP), the report on the social and humanitarian situation (humanitarian situation and humanitarian agency), reports from other AU organs and the AU specialized agencies. The session will also consider the draft agenda and draft decisions of the 42nd Ordinary Session of the Executive Council scheduled to take place from 15th to 16th February in Addis Ababa.
Green hydrogen an answer to Africa’s energy poverty (New Era)
Mines and energy minister Tom Alweendo says Namibia is one of the front-runners in becoming a continental green hydrogen hub. In this respect, he has invited potential investors to seize the opportunity that intends to make Namibia self-sufficient in terms of energy generation to supply the remaining electricity to the rest of southern Africa.
Alweendo said when it comes to the African continent, especially Sub-Saharan Africa, the continent is associated with negative attributes – either underdevelopment or poverty.”This narrative completely ignores the strengths and resilience of the African people. The result of this misconception about us is that as a member of the global communities, our voice is not always heard; consequently, we have not been able to take our rightful place as a respected voice of the global community – a voice that deserves to be heard,” said Alweendo virtually during the Voice of Global South Summit.
Alweendo added: “We have found it unreasonable when some countries and global individuals try to dissuade Africa from leveraging some of its natural resources. They suggest and at times demand that we give up our fossil for energy resources. They press us to as soon as possible switch to clean renewable energy sources, such as wind and solar – and that it is for our good.”
The Africa Fertilizer Financing Mechanism (AFFM) has welcomed $10.15 million in new funding from the Norwegian Agency for Development Cooperation (NORAD). The financing will target projects in Uganda, Kenya and Mozambique, which will be receiving AFFM support for the first time.
NORAD’s contribution will enable the Africa Fertilizer Financing Mechanism to provide credit guarantees for up to 36 months in Uganda, Kenya and Mozambique, with the expected leverage of at least ten times the credit guarantee amount, enabling access to at least 85,000 metrics tons of fertilizer for 850,000 smallholder farmers in the three countries.
The NORAD contribution will buttress the African Emergency Food Production Facility, the African Development Bank Group’s rapid response initiative for addressing Africa’s current food crisis, which has been exacerbated by climate change, conflicts, pests and disease.
Why used car exports to Africa are a development opportunity (WEF)
Used cars are often exported to lower income countries after 10-15 years in developed markets, meaning their emission levels tend to be higher. Air quality degradation is driven by old cars in Africa, home to 40% of global used vehicles, and 80% of these do not meet basic emissions standards. As we transition to electric vehicles, public-private collaboration is key to ensure this happens equitably in both the Global North and Global South.
As China Reopens, African Countries Gear Up for Business (VOA)
After three years of closed borders under its strict “zero-COVID” policy, China reopened its doors to allow international travelers in — and Chinese with cabin fever out — a move with economic implications around the world, including in Africa. On the continent, which counts China as its largest trade partner, African importers who sell cheap Chinese-made goods said they were itching to return to China to stock up while many African countries are also hoping to attract Chinese tourists.
While fears about the spread of COVID-19 caused some countries in Asia, Europe and North America to implement negative testing requirements for Chinese travelers, drawing the ire of Beijing, countries like Kenya and South Africa said they would not be implementing any travel restrictions for travelers from China.
“We are open to going there now and we are looking forward to do that to make sure that we get our businesses back on track,” Samuel Karanja, the CEO of the Importers and Small Traders Association of Kenya, told VOA, adding that the pandemic years have been a “roller coaster” for traders. “For the past three years, it has been a very difficult moment for those traders because they lost touch with their suppliers. Ideally, the traders could go to China, meet their suppliers or manufacturers, go with samples of the goods that they need to be produced for them, some of them could wait for even weeks to be able to see that the production is completed, and the goods are loaded in containers and they’re coming back to Kenya,” he said.
US Treasury Secretary Heads to Senegal, Zambia and South Africa (VOA)
U.S. Treasury Secretary Janet Yellen is headed to Senegal, Zambia and South Africa this week to discuss trade expansion, investment and the U.S. commitment to African economies. This comes after a promise from President Joe Biden at the U.S.-Africa Leaders’ Summit last month that he and members of his Cabinet would visit Africa in 2023.
“I think this is the first in many steps to engage Africans on the continent,” said Cameron Hudson, a senior associate with the Center for Strategic and International Studies’ Africa Program. But he told VOA, “There’s an overall message [U.S. officials] are trying to send as well, which is Washington is present, and that message is not only for the Africans but for the Chinese, Russians competing with the U.S. in these markets.”
Senior U.S. Treasury officials maintain that the purpose of the trip is to exchange ideas with African government officials, private sector leaders, entrepreneurs and youth, and to deepen economic ties between the U.S. and Africa, charting new opportunities for trade and investment.
Tackling health poverty risks in Africa: 4 experts weigh in (WEF)
Africa’s push towards public health autonomy is gaining momentum. With the creation of the Africa Centres for Disease Control and Prevention (CDC), African Medicines Agency and the proposed African Pandemic Preparedness and Response Authority, governments on the continent are coming together to reduce Africa’s dependency on other countries for its health security.
African nations import over 70% of their medicines, vaccines and other health products. But despite being a net importer of medical products, the continent has shown a level of success in managing disease outbreaks.
Looking ahead, African governments need to focus on strengthening their public health institutions to support rapid and effective responses to disease threats and outbreaks. There is scope for governments to leverage public/private partnerships to create robust health systems based on data-driven interventions.
WTO Director-General Says Future of Trade Is ‘Digital, Green and Inclusive’ (WEF)
A challenge for the 2023 trade outlook is not only slowing global growth but also the uncertainty surrounding those statistics. The war in Ukraine, concerns about COVID and fragile supply chains have caused many nations to rethink their approach to trade and question the future of globalization. The World Trade Organization and others have warned that deglobalization would negatively impact the world and especially emerging economies. The question for global leaders is how to create a new agenda for global growth.
Ngozi Okonjo-Iweala, Director-General of the WTO, said: “We say the future of trade is services; it’s digital; it’s green. And it should be inclusive.” Many nations have seen a push to relocate manufacturing closer to consumers’ demand, after supply shocks associated with port blockages, the war in Ukraine and the pandemic. Moreover, concerns about national security have caused many nations to question their over-reliance on certain countries for critical goods and services, such as European dependence on Russian energy. Okonjo-Iweala said the future of trade must also prioritize inclusivity.
Industrial policy has become a major focus for many nations rethinking their approach to trade. “Five years ago, [industrial policy] was not a very sexy topic. Today it’s top of the agenda,” said Alexander De Croo, Prime Minister of Belgium
Ensuring that sustainability remains at the top of the global trade agenda will require coordination with multilateral agencies. As many nations seek out bilateral trade agreements, there is a risk of global trade splintering into trading blocks. Promoting a trade agenda that is fair, inclusive and sustainable will require institutions such as the WTO to establish clear ground rules for all nations.
Trading-up: taking the high road out of trade doldrums (WEF)
As we enter 2023, with the World Economic Forum’s Annual Meeting in Davos taking place under the banner of “Cooperation in a Fragmented World”, the future of global trade and investment is murky. Geopolitical tensions and industrial policy have cast a long shadow on economic openness.
Teetering on the brink of a painful downturn, the global economy and broader society need evidence that we can work better together. The importance of trade and investment in delivering growth, development and sustainable outcomes must be re-established to avoid deglobalisation policies that will erode past gains.
The cracks in the trade system show even in the disconnect between data and narrative. Both global merchandise and services trade volumes are at record highs. Both exports and imports between the US and China, between the US and Europe and between China and Europe, are at their highest ever. But the rhetoric is of fracture and disengagement. And that narrative is clearly influencing investors, with investment flows continuing to trend down.
Globalisation shifting owing to supply chain disruptions, research finds (Engineering News)
New research has revealed the emergence of major shifts in globalisation, as companies rush to move manufacturing closer to home to protect against supply chain disruptions, while increasingly protectionist policies are breaking the world into trade blocs.
The latest ‘Trade in Transition’ study, commissioned by supply chain logistics provider DP World and led by Economist Impact, captured the perspectives of company leaders as they navigate the latest disruptions to global trade – from the conflict in Ukraine to inflation and extended Covid-19 lockdown policies in some markets. Its key finding is that 96% of companies have confirmed they are making changes to their supply chains owing to geopolitical events.
The fragmentation of the world into trade blocs was also cited by 10% of respondents as limiting the growth of international trade. Beyond the war in Ukraine, US-China tensions and cyber warfare are preventing the efficient functioning of economies worldwide. This is leading to increasingly protectionist policies globally, leading to further fragmentation of the global trade system.
The widespread and increasing adoption of technology is indicated to be another way to build resilience into the supply chain. Some 35% of respondents said they were currently implementing Internet of Things solutions to facilitate the tracking and monitoring of cargo, while another 32% of companies are adopting digital platforms to enable direct business with customers or suppliers.
The State of Climate Ambition: Snapshots for Least Developed Countries (LDCs) and Small Island Developing States (SIDS) provide analysis for these groups of Climate Promise-supported countries surrounding their NDC status and implementation readiness. The Snapshots build upon, and update information, from UNDP’s The State of Climate Ambition published in 2022. Each Snapshot explores NDC submission, ambition and quality status while assessing progress on key systems and architecture for NDC implementation. They also look at areas of past and future Climate Promise support and showcase champion countries.
Representatives of G20 countries pitched for South-South cooperation and asked the developed nations to fulfil their commitment towards funding SDG progress in the developing countries in the “Bhopal Declaration” on the last day of the “Think-20” event on Tuesday. The theme of the event was: “Global Governance with LiFE (Lifestyle for Environment), Values and Wellbeing: Fostering Cooperation in Framework, Finance and Technology”.
“The world is passing through turbulent times of multiple crises- food, fuel and pandemics. Post-COVID recovery has become uncertain and prolonged, and progress in SDGs has reversed and slowed down drastically across many countries of the world,” the declaration issued at the end of the two-day event said.
The transformation of economic systems is required for achieving SDGs. Further, there are high linkages between such transformation and sustainable development, it said. The diversification of Global Value Chains (GVCs) is necessary but with special and differential treatment to developing countries exporting nations, it said. Foreign Direct Investment (FDI) in services, infrastructure sectors and logistics could facilitate the effective participation of countries in regional GVCs, as per the declaration.
Revised Industry Standards Reflected in 2023 Edition of IATA Manuals (IATA)
The International Air Transport Association (IATA) announced that it has completed the annual revision of its air transport industry manuals for cargo, ground handling, and operations, thus incorporating the updates made to many of the underlying industry standards over the past year. These revisions reflect the sector’s commitment to further improving safety, introducing more sustainable operations, as well as enhancing the passenger experience and cargo handling.
“Aviation is a unique industry with its global footprint covering operations from mega-hubs, through regional airports to small and even remote airfields. Nevertheless, the same standards and procedures need to be applied across the globe, in order to maintain smooth operations and a high level of safety. The IATA manuals are the reference materials, accurately reflecting agreed global standards, which the industry abides by,” said Frederic Leger, IATA’s Senior Vice President for Commercial Products and Services.
Key stakeholders in the aviation value chain – such as airlines, airports, ground service providers, freight forwarders, shippers, and manufacturers – rely on the IATA standards to ensure robust and efficient operations. The IATA manuals are based on the recommendations devised by standard setting bodies such as the International Civil Aviation Organization (ICAO) and other industry working groups.
Economic slowdown may force workers into ‘lower quality’ jobs (UN News)
According to the International Labour Organization (ILO), global employment is set to grow by just one per cent in 2023, which is less than half last year’s level. The number of people unemployed around the world is also expected to rise slightly, to 208 million. This corresponds to a global unemployment rate of 5.8 per cent – or 16 million people - according to ILO’s World Employment and Social Outlook Trends report.
The UN report warns that today’s economic slowdown “means that many workers will have to accept lower quality jobs, often at very low pay, sometimes with insufficient hours”.
An equally worrying development is the probability that efforts will be dashed to help the world’s two billion informal workers join the formal employment sector, so that they can benefit from social protection and training opportunities. “While between 2004 and 2019 we observed decline in incidence of informality globally of five percentage points, it is very likely that this progress will be reversed in the coming years,” said Manuela Tomei, ILO’s Assistant Director-General for Governance, Rights and Dialogue.
New guide to help governments manage costly oil and gas closures (The Commonwealth)
The Commonwealth Secretariat has released a new practical guide to help governments manage costly oil and gas decommissioning activities, which are expected to surge as a result of the global energy transition.
Decommissioning is a complex and costly process at the end of the economic life of an individual oil and gas project. It involves the safe plugging and abandoning of oil wells, removal of structures and restoration of the surrounding areas.
For many oil-producing developing countries, the decommissioning process could cost billions of dollars, and if monies are not specifically set aside to pay for these activities, taxpayers may have to foot the bill. If poorly executed, decommissioning can also have disastrous consequences for the environment and communities. Furthermore, as the world transitions away from fossil fuels and the demand for oil and gas declines over the long-term, it becomes increasingly likely than many oil and gas assets could become uneconomic sooner than expected, resulting in “stranded assets”. Having robust systems in place to deal with decommissioning is therefore critical.
Developed countries should walk the talk on transforming food systems by helping smallholder farmers in developing countries with cheaper access to irrigation, fertilizers and markets, said Raj Kumar Singh, India’s Minister for New and Renewable Energy, in a session on “Interplay of Food, Energy and Water” at the 53rd World Economic Forum Annual Meeting.
Calling for an international agreement whereby every country would become accountable for transforming its food system, Ramon Laguarta, Chairman and CEO of PepsiCo, USA said it is imperative to put the farmer at the centre, and make sure the farmer makes good money while using fewer resources and producing fewer carbon emissions.
Anne Beathe Tvinnereim, Minister of International Development of Norway, said it was absurd that “the very people who go hungry are food producers”, adding that “now, with increasing cost of inputs, it will get worse.”
Cyber resilience delivering through disruption (IMF)
Cyber incidents could come with great uncertainty and complexity. Perpetrators and their motivations are often obscure. Cyber operations could involve commercial, government, or military targets. Recent incidents demonstrate the ability of computer hackers to cripple a country’s critical infrastructure. Electricity, water, telecommunications, and transportation are among these essential infrastructures—those that help a society and economy function. Third-party service providers that are part of the complex supply chains could also be disrupted.
The financial sector continues to be a target of choice for criminal gangs and other types of attackers. For the financial sector, critical infrastructure includes systems for clearing, settling, or recording payments, securities, derivatives, or other financial transactions. Given their systemic importance in most jurisdictions, their operations and cyber resilience are subject to a high degree of oversight to ensure their safety and efficiency. Preparedness is key across the different types of cyber-attacks—phishing, supply chain attacks, or ransomware, for example—that could unfold because of geopolitical conflicts.