Search News Results
tralac Daily News
Local news
Fostering SA, US trade relations (SAnews)
During the meeting, held at the office of the South African Consul General in New York on Friday, the Premier said the South African Embassy in the US has previously held a meeting with business people and investors to showcase the KwaZulu-Natal Investment Book, and reinforce the province’s position as an attractive business, investment, and tourism destination. “Our visit is a continuation of the provincial government’s approach of engaging with the international business community while leveraging on the good relations and partnerships that the South African Consulate-General has with US-based businesses and investors.
Export earnings set to hit record high (Sunday Mail)
Zimbabwe’s export earnings are expected to breach US$7 billion this year – the highest in the country’s history – driven by aggressive export promotion and an assertive economic diplomacy drive. Last year, Zimbabwe raked in US$6,03 billion, exceeding the target set in the National Development Strategy 1 economic blueprint owing to numerous export promotion initiatives. Half-year export earnings stood at US$3,4 billion, compared to US$2,3 billion recorded during the same period last year, representing 47,3 percent growth.
Horticulture exports fall 10pc on China restrictions (Business Daily)
Horticultural exports declined 10.7 percent in the year to July, blamed on limited access to the Chinese market by avocado farmers due to stringent entry conditions. Data made available by the Central Bank of Kenya (CBK) shows horticulture exports declined from $1.13 billion (Sh135.6 billion) in the 12 months to July 2021 to $1 billion (Sh120 billion) this year, contrasting with tea and coffee exports whose value rose in the period.
Yellow maize importers face losses as prices of local white grain drop (Business Daily)
The higher cost means that even if they process the yellow grain into feed, they would still require to sell it at a higher price than what other millers using local white maize are selling, making their product uncompetitive in the market. Yellow maize importers face losses as prices of local white grain drop
KPA reverses compulsory SGR haulage order (Business Daily)
“This is, therefore, to notify all shipping lines that importers’ documentation of place of clearance and mode of transport for their goods shall be at their choice,” acting KPA Managing Director John Mwangemi said in the notice on Monday. Traders can now clear their cargo at the Port of Mombasa and choose the mode of transport to Nairobi and the hinterlands after Kenya Ports Authority (KPA) reverted custom services to the coastal city in line with a presidential decree.
Preparations for construction of Bagamoyo Port underway (Daily News)
TANZANIA Port Authority (TPA) has revealed in Dar es Salaam that preparations for the construction of Bagamoyo Port are underway. TPA’s Director General Plasduce Mbossa said on Saturday that the government is looking for a strategic investor although the part of the mega project will be executed by the State. “We will implement part of the project,” he said.
South Sudan Hopes Planned Port in Djibouti Will Increase Market Access, Profits (VOA)
Duncan Otieno, a Nairobi-based economist, said the move leaves Kenya in a difficult situation as it feels the pinch of competition from the regional port in Dar es Salaam and now Djibouti. South Sudanese economist Abraham Mamer said the Djibouti port will provide a cheaper route for South Sudanese exports and imports.
Digitalizing Guinea-Bissau: The Future Starts Now (World Bank)
A small nation, rich in untapped natural resources, Guinea-Bissau has the highest proportion of natural wealth per capita in the West African region.
African trade and integration
Tunisia to host Continental Free Trade Area Negotiating Forum on September 26-27 (TAP)
The meeting of the Continental Free Trade Area Negotiating Forum (CFTA-NF) will be held on September 26 -27 in Tunisia, Tunisian General Labour Union Deputy Secretary-General in charge of Arab and International Relations Hedia Arfaoui told TAP on Saturday.
Kenya starts cashing in on Africa free trade (Business Daily)
Kenya has shipped its first consignment of locally made batteries to Ghana, two months after it was picked among seven countries to pilot the continental free trade area that seeks to unlock the movement of goods and services in Africa. The Kenyan-made Exide batteries worth Sh9.24 million ($77,000) landed in Ghana last week, marking a formal start of preferential trading under the Africa Continental Free Trade Area (AfCFTA) framework.
Look beyond dollar to grow trade among countries, Cellulant CEO urges Africa (The Guardian Nigeria)
Chief Executive Officer of Cellulant, a pan-African financial technology (fintech) company driving financial inclusion, Akshay Grover, has charged the continent to consider the adoption of a local currency as a medium of exchange to break the jinx of low intra-African trade and jump-start a more ambitious regional economic development. Intra-African trade volume is currently estimated at 14.4 per cent of total trade, which is among the lowest in the world. The United Nations Conference on Trade and Development (UNTAD) expects the African Continent Free Trade Agreement (AfCFTA) to raise it to 33 per cent.
AfCFTA moves to pull women and youth into trade with new protocol (The East African)
This week, AfCFTA Secretary General Wamkele Mene said the fund, created through the Afreximbank and known as the AfCFTA Adjustment Facility, will be used to cushion countries from short-term revenue losses once they lift tariff barriers for cross-border trade. The African Continental Free Trade Area (AfCFTA) is building a fund and drafting a protocol to ensure participation of more women and youth in trade.
After a stellar Gross Domestic Product (GDP) growth performance in 2021, Africa finds itself in the midst of remarkable uncertainty (Farmers Review Africa)
Leading global specialist risk consultancy Control Risks and its economics consulting partner Oxford Economics Africa announced the launch of the seventh edition of their Africa Risk-Reward Index today: “Opportunity through uncertainty.”
Africa can produce 5 million new vehicles every year by 2030 - Deputy Trade Minister (GhanaWeb)
According to him, this can come to fruition following the implementation of the African Continental Free Trade Area (AfCFTA). Speaking at the Ghana-Denmark Business Forum, Herbet Krapa entreated businesses on the continent to leverage the opportunities available under the Continental Free Trade Area.
FAO and SADC launch Regional Agricultural Information Management System (SADC)
Unreliable and unharmonized data in the agricultural sector in Southern Africa has always been a set-back for policy-makers, resulting in considerable delays in planning processes for implementation of well-coordinated regional responses to curb threats that include transboundary pests and diseases such as the Fall Armyworm and Foot and Mouth Disease that negatively impact on productivity and tra
Politics, drought dim prospects for EA economies (The East African)
East Africa’s inflation is forecast to increase to 8.6 percent in 2022 from 7.7 percent in 2021 driven by elevated global food and energy prices. The report titled ‘Resilience through tough times’ shows that sanctions imposed on Russia have led to supply chain disruptions and export restrictions to the EA economies, manifested through rising inflation, which is expected to last the duration of the conflict.
EA businesses call for lower money transfer charges, forex commission (The East African)
The calls for full interoperability of mobile money networks follow a report by Africa RISE, a technical assistance facility funded by the European Union, which reveals that the East African Payment and Settlement System (EAPS) is currently operational in only four of seven EAC states. “I urge EAC partner state governments to pursue initiatives to reduce currency exchange fees during transaction as an interim solution in the absence of a single currency,” said John Bosco Kalisa, chief executive of the East Africa Business Council.
Liberalise airspace to promote tourism in East Africa, Partner States told (EAC)
East African Community (EAC) Partner States have been urged to liberalise their airspaces and open up skies to promote the tourism industry in the region. Mr. Odek, who was speaking during the official opening of the 2nd EAC Tourism Expo in Bujumbura, Burundi, called upon the Partner States to finalise the EAC regulations to facilitate the liberalisation of air travel in the region.
EAC Pre-budget Conference for the Financial Year 2023/2024 concludes in Arusha, Tanzania (EAC)
Hon. Namara emphasised the need for consultations among all stakeholders during the Community’s planning and budgeting process, adding that the agreed priorities under the four pillars of EAC integration (Customs Union, Common Market, Monetary Union and Political Federation) should always reflect the aspirations of East Africans. Representatives from all the EAC Organs and Institutions, delegates from EAC Partner States and Members of the East African Legislative Assembly (EALA) Committee on General Purpose attended the two-day conference.
EABC Board Outlines New Business Priorities For Intra-EAC Trade Growth & Economic Resilience
The Board of the East African Business Council during its 84th meeting outlined priorities set to boost intra-EAC trade and investments. In her speech to the 84th EABC Board Meeting, the Chairperson Ms. Angelina Ngalula lauded the EABC Secretariat for championing the adoption of 35% as the 4th band of EAC Common External Tariff by EAC Partner States whi
The Board of the East African Business Council led by Chairperson Angelina Ngalula held discussions with the Director General of the Tanzania Ports Authority Mr. Plasduce Mbossa on solutions to boost port performance to increase export competitiveness of the EAC bloc.
Global economy
Members share lessons learned on export restrictions during COVID-19 pandemic (WTO)
The third session on 18 July provided members the opportunity to share their practices on measures aimed at easing trade in COVID-19 goods under the purview of the Committee including, for example, in relation to tariff suspensions, reductions or eliminations. The questionnaire included questions aimed at collecting and compiling information on some of the topics covered in the first two experience-sharing sessions, namely the establishment of a COVID-19 essential goods list at the national level, the classification of such goods in the national tariff nomenclature, and whether specific actions were taken to monitor trade in such goods.
Members agree next steps on trade and gender work post MC12 (WTO)
The Secretariat also presented the current trends in inclusive policy-making and how gender considerations are integrated into the Aid for Trade programmes. For instance, Canada proposed to lead the discussion on data collection under the pillar of analytical work while Australia voiced interest in Aid for Trade.
Investment facilitation negotiators reaffirm aim of concluding text-based talks this year (WTO)
Regarding the priority issues to be addressed in coming meetings, several participants pointed out the need to continue discussions on the scope of the future IFD Agreement, including on possible definitions of “investment”, “investor of another member” and “authorization” for an investment. Delegations also heard from the facilitator of the Discussion Group on “Possible definitions” on the informal bilateral consultations held with delegations as well as from the co-coordinators on their consultations in different configurations on five provisions: final provisions, supplier-development programmes, home state measures, movement of business persons for investment purposes, and transfers and payments.
Cross-border collaboration needed to combat illicit financial flows – Malami (Blueprint)
The Attorney General of the Federation and Minister of Justice, Abubakar Malami, SAN has restated need for international support and cross-border collaboration in checkmating illicit financial flows. Malami made the statement on Friday at the high-level side event of the 77th session of the United Nations General Assembly in New York USA on Friday.
OECD Interim Economic Outlook warns of pervasive global economic slowdown (OECD)
The global economy has lost momentum in the wake of Russia’s war of aggression in Ukraine, which is dragging down growth and putting additional upward pressure on inflation worldwide, according to the OECD’s latest Interim Economic Outlook. The Outlook projects global growth at a modest 3% this year before slowing further to just 2.2% in 2023. This is well below the pace of economic growth projected prior to the war and represents around USD 2.8 trillion in foregone global output in 2023.
African leaders, global partners vow urgent cooperation to stave off food security crisis (AfDB)
The leaders, representing the African Union, European Union, United States, Spain, Colombia, Germany, Indonesia, and Nigeria, issued a joint declaration at the Global Food Security Summit to affirm their commitment. African leaders and governments in Europe, Asia and the Americas on Tuesday vowed to act “with urgency, at scale and in concert” in responding to the current food insecurity and nutrition crisis unfolding around the world.
The European Commission has allocated €600 million of European Development Fund to finance immediate humanitarian food aid, food production and resilience of food systems in the most vulnerable countries in Africa, the Caribbean and Pacific (ACP).This will help partner countries and vulnerable people to cope with the unjust consequences of Russia’s war of aggression against Ukraine, notably the current food security crisis and related economic shock.
New UNCTAD tool tracks global trade in biodiversity products (UNCTAD)
“The availability of this data is of paramount importance, as data has always been the missing factor in tracking the importance of biodiversity-based products in achieving global biodiversity goals and targets,” said Teresa Moreira, an officer-in-charge of UNCTAD’s international trade division. The trade and biodiversity statistical tool provides consistent, complete, harmonized and comparable data and related indicators on 1,814 such products for any country and year since 2010.
Xiamen sees trade with BRICS climb 26.2% (China.org.cn)
East China’s coastal city of Xiamen saw its trade with BRICS countries increase 26.2 percent year on year to hit 59.39 billion yuan (about 8.49 billion U.S. dollars) in the first eight months of this year, according to Xiamen Customs.
400 million new green and digital sector jobs, will pave way to ‘rebalance societies’ (UN News)
According to António Guterres, the Global Accelerator on Jobs and Social Protection for Just Transitions aims to rebalance societies by putting decent jobs and social protection at the centre of sustainable development. “The path of inaction leads to economic collapse and climate catastrophe, widening inequalities and escalating social unrest”, which could leave “billions trapped in vicious cir
Related News
tralac Daily News
Local news
Zim makes inroads on exports to Malawi (The Herald)
ZIMBABWEAN companies’ prospects to grow exports into the Malawi market look bright after local brands were commended for their quality at the just-ended Malawi outward mission. This was revealed at the just-ended Malawi outward mission, which ran from September 20-022 2022 in Malawi’s capital, Blantyre. The outward mission, which was facilitated by ZimTrade, the national trade development, and promotion body, saw 15 local companies from various sectors attending.
Local companies that took part in the outward mission were drawn from diverse manufacturing backgrounds including agro-processing, electrical and agricultural equipment.
ZimTrade has been conducting multiple activities within the region in an effort to increase exports into Malawi. “Malawi is a net importer and with the good feedback on our products, there is room to increase exports into this market. The biggest opportunities can be found in agriculture inputs and implements, building and construction, fast-moving consumer goods, and more,” said ZimTrade director of operations, Similo Nkala.
Kenya-America trade deal to mirror Taiwan template (Business Daily)
Kenya-US trade deal talks will follow America’s bilateral pact with Taiwan save for caps on State-owned companies, Trade Principal Secretary Johnson Weru said. Mr Weru said Kenya will duplicate the US-Taiwan trade deal announced in August, however omitting a plan to remove distortive practices of state-owned enterprises and government monopolies. Kenya is seeking a trade agreement with the US government that will support countering terrorism, corruption and investment.
It comes at a time when the US has overtaken Uganda to become the largest buyer of Kenyan goods, ending Kampala’s dominance as the top market for Kenya’s exports. Official data shows that exports to the US jumped 47 percent to Sh38.8 billion in the first half of the year on the back of increased sales of clothes.
Rwanda Economic Update: Boosting Exports Through Technology, Innovation, and Trade in Services (World Bank)
Released today, the new Rwanda Economic Update finds that, after a strong economic recovery last year, Rwandan GDP growth is expected to be moderate in 2022 due, in part, to the effects of the war in Ukraine and the persistent risk of the COVID-19 pandemic in major economies. According to the 19th edition of the Rwanda Economic Update (REU19) titled Boosting Exports Through Technology, Innovation, and Trade in Services, GDP growth is projected at 6% for 2022, after reaching 11% in 2021. Inflation continues to mount as increases in international commodity prices and the disruption of global supply chains have led to substantial increase in energy, transport, and food prices.
In its special focus on trade, the report gives an insight into Rwanda’s export performance. The REU19 notes that Rwandan firms have increased their participation in international trade (particularly in services) over the last decade, to levels exceeding that of regional and continental peers. Discussing the main drivers of trade performance, the report highlights that securing a certification for an international quality standard, such as the International Organization for Standardization (ISO) certificate, is a critical factor in facilitating firms’ participation in international trade. Firms with ISO certification are 36% more likely to be exporters. However, this remains a major challenge for Rwanda as only 3% of Rwandan firms had obtained ISO certification in 2019.
African trade and integration
East Africa exporters brace for impact as Suez Canal tolls rise (The East African)
The increase in transit tolls for ships passing through the Suez Canal by 15 percent is likely to impact exports to Europe from the region, the shippers warned. Egypt has raised the fees for all vessel types, except bulk and cruise ships, whose fees will increase by 10 percent from next year. Suez Canal Authority chief Osama Rabie said in a statement that the increment will take effect from January 1, 2023.The authority cited rising energy prices, freight rates, and daily charter rates for ships, which are predicted to continue next year.
“The (tolls) increase is inevitable and is a necessity in light of the current global inflation, which translates into increased operational costs and the costs of the navigational services provided in the canal,” said Mr Rabie.
The Shippers Council of Eastern Africa (SCEA) chief executive Gilbert Lagat said exports from East Africa destined to Europe would be the most affected. “East Africa depends on most of its imports from Asia, which uses an alternative channel, whereas goods being exported from the region have to pass through the Suez Canal. This will complicate export, and some ships might opt to change their destinations considering the economies of scale,” said Mr Lagat.
Boeing Predicts Growth in Africa Aviation Demands (KT Press)
Global airline manufacturer, Boeing has estimated that intra-regional and domestic networks across the African continent will grow with a robust 6,1% compound annual growth rate, driving twenty-year demand for 1,010 new airplanes by 2040 valued at $176 billion. Boeing 2022 Commercial Market Outlook (CMO) data released this September shows that with Europe remaining the most prominent origin destination for African carriers, overall African air traffic growth is forecast at 5.2%, the third highest among global regions.
The outlook shows that African aviation traffic has recovered at a strong pace in 2022 with pent-up demand and economic growth driven by higher global commodity prices allowing African airlines to recover their flight operations to 80% of pre-pandemic levels.
New deal to help Ethiopia Airlines expand its wings (Business Daily)
Kenyan-based travel technology company AfroAtlas has signed an agreement with Ethiopia Airlines to provide the carrier with a new platform for travel agents to market and distribute its products and flight bookings. The firm—which is known as a travel consolidator— said on Wednesday it will deliver the airline’s New Distribution Capability (NDC) platform, which is a travel industry-supported programme launched by the International Air Transport Association (IATA) for airlines to create and distribute relevant offers to customers.
Growing Africa’s aviation market (News Agency of Nigeria)
Post-pandemic resurgence holds opportunities, challenges for different industries (Engineering News)
As the world is moving beyond the Covid-19 pandemic and lockdowns, a resurgence is occurring, with higher levels of consumption and trade in most sectors. This presents opportunities, but also challenges, for various industries. This was noted by domestic and international trade credit insurance firm Credit Guarantee Insurance Corporation (CGIC) Africa CEO Charles Nortje, during the company’s ‘Resurgence’ Spring Conference on September 22.
Vodacom South Africa MD Sitho Mdlalose spoke to the future of the mobile industry, noting that this presented both challenges and opportunities for industry players to mitigate and capitalise on. He outlined that there were many players in the industry, across many verticals and geographies. Owing to this complexity, Mdlalose said the future would see an increasingly competitive environment, in several different ways. He elaborated that vertical integration would be a key topic for the industry, with this already starting to happen, both in Africa and globally.
Trade, investment, others should be right-based across Africa ― Olawuyi (Tribune Online)
An independent expert of the United Nations Working Group on Business and Human Rights in Africa, Prof. Damilola Olawuyi (SAN) called for rights-based approaches to trade, investment, banking and business practices across Africa.
The Senior Advocate of Nigeria stated that a vast volume of literature has been generated on its application in Europe, North America, Asia and Latin America amongst others since the adoption of the United Nations Guiding Principles on Business and Human Rights (UNGPs) in 2011.
“Since the adoption of the United Nations Guiding Principles on Business and Human Rights (UNGPs) in 2011, a vast volume of literature has been generated on its application in Europe, North America, Asia and Latin America amongst others. “What however remained absent for many years was an in-depth, exhaustive and book-length exposition of the application of the UNGPs in African countries.
US-Africa trade: Lofty goals, lagging investment (The Africa Report)
With a quarter of earth’s population by 2050 and a median age under 20, Africa appears poised to replace China as both a giant consumer market for American goods and services and as the world’s factory. Washington insists the US and Africa are a natural fit and has made trade a centrepiece of its US-Africa Leaders Summit in mid-December.
As global supply chains for everything from critical minerals to food and fertiliser come under threat from intensifying competition with China and Russia’s invasion of Ukraine, US investment in Africa is expected to be a key focus of the three-day summit. On 14 December, the US Chamber of Commerce and the Corporate Council on Africa (CCA) will co-host the Africa Business Forum, the official private sector stakeholder event of the summit.
Africa’s economies threatened by climate crisis, regulatory uncertainties: experts (Daily News Egypt)
Climate crisis and unpredictable political and regulatory uncertainties are posing threats to sustained economic growth in Africa, experts said Tuesday.
Speaking during the virtual launch of the 2022 Edition of the Africa Risk-Reward Index report, the experts said the continent should confront emerging threats of sporadic conflicts, climatic shocks, and policy and regulatory uncertainties to sustain economic growth. Patricia Rodrigues, a senior analyst for West Africa at Control Risks, a global risk consultancy firm, noted that Africa’s quest for economic revival is at stake amid pandemic-related disruptions, the Ukraine-Russia conflict and recurrent drought.
“Some of the broad threats to Africa’s economies are the climate crisis, supply chain disruptions linked to the pandemic, soaring food prices, and inconsistency in the regulatory environment,” Rodrigues said.
Global Africa Business Initiative inspires business, political, and cultural leaders to advance equitable growth for the continent (UN Global Compact)
United Nations Deputy Secretary-General Amina J. Mohammed closed the inaugural Global Africa Business Initiative (GABI) conference this week, calling on partners in government, industry, and philanthropy to contribute toward a vision of sustainable, equitable growth; and to accelerate business opportunities on the African continent. “The solidarity we’re looking for in the world will come home to roost, and it will be in Africa. Right now, the leadership and the solutions are coming from the continent,” said Ms. Mohammed.
Under the headline Unstoppable Africa, the two-day GABI launch event brought together business, non-profit, political, media and cultural leaders to create a new growth roadmap and realize the immense, untapped business and investment opportunities offered by the $2.5 trillion African market.
Campaigners want health funding cuts reversed amid Africa crises (The East African)
Civil society groups and health professionals, speaking on the sidelines of the ongoing 77th United Nations General Assembly (UNGA) in New York, said there was an urgent need for targeted investment in programmes and policies to tackle the devastating social and economic impact of crises, including the food crisis in Africa and the conflict in the Democratic of Congo (DRC).
Covid-19 has led to food price hikes and the overall rise in the cost of living in most African countries. Some countries have been limiting access to food and other essentials, even if food is available at increased prices in local markets.
About 5.5 million children in East Africa are facing high levels of malnutrition due to the compounding effects of Covid-19, intense drought, and the Ukraine crisis. About 97 million more people are living on less than $1.90 a day because of the pandemic, increasing the global poverty rate from 7.8 percent to 9.1 percent.
Inclusion, inequality, and the Fourth Industrial Revolution (4IR) in Africa (Brookings Institution)
Adoption of Fourth-Industrial-Revolution (4IR) technologies in sub-Saharan Africa could bring not only substantial economic growth and welfare benefits, but also social and economic disruption, including widening inequality if countervailing policies are not adopted, as discussed in our recent report.
With a high share of the labor force working informally—a trend expected to continue for several decades—Africa’s education and industrial policies need to strike a balance between encouraging private investment needed to create new formal jobs using advanced technology and ensuring that all new labor force entrants have the basic skills and infrastructure to make an adequate living.
Inequality has been on the rise in many sub-Saharan Africa countries. Five of the top ten most unequal countries in the world are in sub-Saharan Africa. Africa cannot afford to let technology exacerbate this trend. Policies to contain or reduce inequality involve action across sectors and policy domains, and
Three steps for Africa to combat climate change (AFC)
With hopes for countering global warming pinned on progress at the upcoming COP27 UN Climate Change Conference in Egypt, a report from the Africa Finance Corporation (AFC), Africa’s leading infrastructure solutions provider, sets out the continent’s stance by balancing the need for emissions reduction with critical development imperatives.
The report, Roadmap to Africa’s COP: A Pragmatic Path to Net Zero, is set within a context where Africa has borne the brunt of the most devastating impacts of climate change, while contributing little to global emissions. This low carbon output reflects Africa’s crippling energy deficit, which has stymied industrialisation and economic development. Africa, therefore, needs a realistic agenda for addressing climate change which allows the region to also continue advancing its industrial base.
“Africa is unlike any other continent when it comes to global net zero – and we need a blueprint for a common negotiating stance that reflects this,” said Samaila Zubairu, President and CEO of AFC. “We are advocating for consideration of Africa’s energy deficit and the need for quantum leaps in industrialisation for job creation and reducing poverty, as well as climate-proofing built infrastructure and protecting our powerful carbon sinks.”
Transiting to green growth in fossil export-dependent economies: A pathway for Africa (Global Policy Journal)
Divestment from fossil fuels has been at the heart of global climate discourse. For developing countries that have traditionally been less emitters and at the receiving end of the severest economic impact of climate change, a sweeping divestment could lead to serious socio-economic and political consequences. African countries must collectively adapt energy transition to local context and pursue a pragmatic approach that ensures a gradual transition from fossil fuels to a green economy.
The African Continental Free Trade Agreement (AfCFTA) presents a unique platform for Africa to achieve net-zero emissions by continued investments in fossil fuels while drastically cutting emissions arising from current externalised supply chains because AfCFTA will promote cleaner regional supply chains. Africa’s fossil fuel-dependent economies must redirect current fossil revenues into creating non-fossil-based industries while making a gradual-but-steady shift from fossil fuel as the source of fiscal revenues.
Climate financing will play an important role in unlocking Africa’s potential to combat climate change. It is estimated that Africa requires about 2.5 trillion dollars of climate finance between 2020 and 2030 averaging about 250 billion dollars each year. However, the total annual climate finance flows in Africa for 2020 were only 30 billion dollars, which is just about 12 percent of the amount needed.
On the margins of the 77th United Nations General Assembly in New York, the African Union Development Agency-NEPAD convened a high-level event on Climate Finance to Address Global Challenges on Climate Change, Land Degradation and Biodiversity Loss.
Dr Andrew Steer, Chief Executive Officer of the Bezos Earth Fund highlighted the positive strides that Africa is taking towards climate resilience, in pointing out that, “Africa is the continent that is showing the most ingenuity and innovativeness in climate change. Africa is the continent with the greatest opportunity for restoration.”
Global economy
World needs maritime trade to brave rough seas of crises, UNCTAD chief says (UNCTAD)
The world again needs the shipping industry to brave the rough seas of crises, UNCTAD Secretary-General Rebeca Grynspan said on 22 September as she addressed the Global Maritime Forum’s annual summit. Speaking at a New York navy yard dubbed the “can-do shipyard” at the height of World War Two, Ms. Grynspan said maritime trade is facing a “historic moment of crisis”.
The war in Ukraine is disrupting shipping routes and supply chains. It has also triggered global food, energy and finance crises that have sparked record prices worldwide and could push tens of millions more people across the world into hunger and poverty this year.
Maritime transport has a key role to play in cushioning the blow, since ships carry over 80% of the goods the world trades – including most of the food, energy and fertilizers people desperately need right now.
Ms. Grynspan heralded the work already done to help load and transport food and fertilizers from Ukraine through the Black Sea Grain Initiative brokered by the United Nations and Türkiye. But she called on the maritime industry to redouble its efforts.
DG Okonjo-Iweala: Global trade a powerful instrument for improving the lives of women (WTO)
Empowering women economically through decent jobs and trade can lead to increased global development and economic growth, DG Okonjo-Iweala said. Trade creates jobs and market opportunities for women and the businesses they run and serves as a driver of economy-wide growth in the countries that most urgently need it, she added. But “we have left much of this power unharnessed,” she noted. “We can do so much more to leverage trade to create economic opportunities for women.”
The Director-General noted a recent joint study on trade and gender equality by the WTO and World Bank which found that trade generates more and better jobs and job opportunities for women. Companies that export employ more women, and firms integrated into global trade and global value chains have a higher average female labour share than those focused on the domestic market.
Least developed countries impacted by ‘range of interlinked crises’ – Assembly President (UN News)
“Even before the pandemic, many least developed countries were off-track in achieving the Sustainable Development Goals (SDGs) and had limited capacity to tackle complex challenges such as climate change or food insecurity,” Csaba Kőrösi said.
“However, this year’s Ministerial Meeting assumes unique significance as it takes place amid a whole range of interlinked crises rippling through our world”.
While noting that those external shocks have “upended people’s lives, reversed decades of development gains, and destabilized governments around the world,” he also pointed to “the good news” that we have the tools at hand to encourage transformation.
The Doha Programme of Action – adopted in March during the first part of the “pivotal” Fifth UN Conference on LDCs – provides an important blueprint for them to overcome the impacts of the global crises, Mr. Kőrösi said. “It charts a path for LDCs to build resilience and realize the Sustainable Development Goals,” he continued, but “to get there – we must work together to ensure the Doha Programme of Action is implemented”.
BRICS Ministers voice concern on global conflicts (SAnews)
The BRICS Ministers of Foreign Affairs and International Relations have expressed concern on the increasing and ongoing conflicts in many parts of the world.
The BRICS alliance consists of Brazil, Russia, India, China and South Africa – five major emerging economies with over three billion people that account for over 40% of the world’s population and over a quarter of the global gross domestic product.
The Ministers reaffirmed their commitment to multilateralism and the multilateral trading system with the World Trade Organisation (WTO) at its core. “They reiterated the strong and necessary need to strengthen and reform the multilateral system, including the UN, the WTO, the International Monetary Fund, and other international organisations.” They further reiterated their commitment to strengthen the multilateral trading system of the WTO, which is consensus and rules-based, transparent, non-discriminatory, open, free and inclusive with special and differential treatment for developing countries. “They urged all States to refrain from promulgating and applying any economic, financial or trade measures not by the rules of the WTO, international law and the UN Charter that impede the full achievement of economic and social development, particularly in developing countries.”
G20: Indonesia explores cooperation opportunities with South Africa (ANTARA)
Coordinating Economic Affairs Minister Airlangga Hartarto explored opportunities for cooperation with South Africa while meeting with South Africa’s Trade, Industry, and Competition Minister Ebrahim Patel at the G20 Trade, Investment, and Industry Ministerial Meeting (TIIMM). The two ministers discussed various aspects of potential cooperation, including mineral and coal, as well as efforts to cut dependence on fossil fuels according to the global agreement to reduce exhaust emissions and the impact of climate change.
“Technology, such as carbon capture, and utilization and storage (CCUS), including its funding mechanism, must be encouraged to have a significant impact on both countries,” Hartarto noted in a statement received here, Friday.
During the meeting, he remarked that the transition to low-carbon energy is an important aspect to achieve climate resilience that supports the environment and creates more job opportunities.
Leveraging aid for trade to mobilize climate finance in the least developed countries (Global Policy Journal)
The LDCs, which are not only highly vulnerable and least prepared to face climate-related challenges but also resource-strapped, can leverage AFT to mobilize climate finance. This, however, requires better appreciation of the need to enhance coordination, build capacity and achieve synergies between two important sources of development finance.
Since this is an under researched area, this paper has made the attempt to fill the void by exploring, with the help of examples and where possible, various possibilities that exist. While indirect support for feasibility studies and project preparation can contribute to the foundational work in leveraging climate finance, direct support such as co-financing, developing proof of concept or de-risking projects to attract private investment, including through blended financing modality, is important to unlock the financing potential.
At the same time, there is a need to maintain the right balance between mitigation and adaption when it comes to climate finance.
Tax policy is playing a critical role as countries seek to promote economic recovery from the COVID-19 pandemic and respond to the impact of rapid increases in energy prices, according to a new OECD report. Tax Policy Reforms 2022 describes recent tax reforms across 71 countries and jurisdictions, including all OECD members and selected members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting. The report finds that tax reforms - notably reductions in taxes on labour and more generous corporate tax incentives - have been among the key policy tools that countries have used to stimulate growth and promote economic recovery from the pandemic.
“Recent tax reforms have been targeted at stimulating economic recovery from COVID-19, while countries with the greatest fiscal space have been providing more generous tax benefits for longer periods of time,” said Pascal Saint‑Amans, Director of the OECD Centre for Tax Policy and Administration. “Countries have also used tax policy as one of their main tools in responding to rapid rises in energy prices.”
Related News
tralac Daily News
Local news
South Africa’s farm exports are an economic lifeline, with weak spots (Phys.org)
The African continent remained South Africa’s largest agricultural exports market in the first quarter of this year, accounting for 35% in value terms . In the second quarter of this year, citrus was still the top exportable agricultural product by value in South Africa, although down by 22% from the second quarter of 2021 .
Only higher supply can help lower food prices in the short term, says Futuregrowth (Engineering News)
As the war in Ukraine rages and global inflationary pressure mounts, South Africa is unlikely to see reductions in key input costs – fuel and fertiliser – and, therefore, food prices will remain above pre-2020 levels, reports asset management company Futuregrowth. South Africa’s overall rate of inflation in June was 7.4%, compared with June 2021, with the rate of increase in the prices of food and non-alcoholic beverages averaging even higher at 8.6% over the same period, the effects of which are felt directly by consumers. On the positive side, agricultural producers should respond to higher agricultural commodity prices, hopefully leading to increased production.
Futuregrowth says production conditions for South African farmers will be critical, but higher supply should lead to somewhat normalised prices in the medium term.
“If anything is certain, it is that we are living in very uncertain times. Agricultural producers face an array of challenges, including an ongoing war and the ripple effect that various governments’ policies will have on the global and local economy,” Futuregrowth says.
Tyre importers start legal process to get anti-dumping duties reversed (Moneyweb)
The Tyre Importers Association of South Africa (Tiasa) has commenced legal steps to reverse the decision taken by the International Trade Administration Commission (Itac) to impose provisional anti-dumping duties on tyres imported from China.
Tiasa chair Charl de Villiers said that Tiasa will be lodging a high court application to reverse the decision taken by Itac to impose these provisional anti-dumping duties on the basis that the legislation Itac relied on to impose these provisional duties has not been promulgated. The provisional anti-dumping duty will remain in place until 8 March next year and will lapse if Itac has not issued a final determination by then.
South African Clothing Retailers Reducing Reliance on Chinese Imports (Voice of America)
The South African flag is increasingly decorating labels on garments at major retail chains across the country. It’s an effort to bolster the country’s clothing and textile sector. More than half of the textiles sold by South African retailers are imported from abroad, according to the government, and nearly 60% of those imports come from China. Retailers signing on to a master plan by the government to support local businesses say there are more benefits than just job creation.
Hazel Pillay, general manager of retailer Pick n Pay Clothing, said, “Being able to have the product made locally means that you can actually respond to what the customer needs more efficiently, which is really what every retailer wants — to move towards more fast response.”
Kenya exports to Uganda drop as rest of EAC soar (The East African)
Kenya’s exports to Tanzania grew the sharpest among all East Africa Community (EAC) markets in the six months to June, new data shows, outshining the country’s slumped performance in its top trading destination, Uganda. Statistics by the Central Bank of Kenya shows Kenya’s exports to Uganda dipped 8.5 per cent to Ksh46.77 billion ($386.3 million) during the half year compared to a similar period in 2021—breaking a growth trend in all EAC markets including Tanzania, Rwanda, and South Sudan.
Although Uganda remains Kenya’s main export market, frequent trade tiffs over items such as sugar, eggs and milk have often soured trade.
Kenya had in the last two years restricted exports of poultry and dairy products from Uganda, straining the relationship between the duo. The issue on poultry was resolved after Uganda threatened to ban Nairobi from exporting its goods to the landlocked neighbour. In 2020, Kenya barred sugar from Uganda and sugarcane, costing traders who were exporting the raw material to sugar mills billions of shillings as the crop was left to rot on trucks at the border.
Share of Kenya’s exports to EAC falls despite trade deal (Business Daily)
Exports from Kenya to East African countries have shrunk over the past decade despite expectations that Kenyan entrepreneurs would experience a boom under the regional trading bloc that took effect in 2010.Official data show the share of Kenyan exports to Uganda, Tanzania and Rwanda shrank to 19.9 percent in the six months to June. The share stood at 22.5 percent in similar period a decade ago as Kenyan exports to other countries rose faster than what it sold to the neighbouring countries. This emerged in a period when a common market protocol was in place and touted to boost commerce among the East African Community (EAC) countries.
Experts say Tanzania and Uganda have in recent years boosted their industrial base, cutting their appetite for Kenya-made goods.
Kenya: Export value rises by 17% helped by agriculture produce (The Exchange)
Kenya’s export value increased by 17 per cent in 2021 to hit KSh 666.7 billion (US$ 5.5 billion) compared to KSh 567.4 billion (US$ 4.7 billion) in 2020. This is according to the latest data from the Kenya Trade Network Agency (KenTrade) Business Intelligence Tool that shows that the increase was influenced by earnings from top agricultural products (tea and horticultural products). As per the report, tea and horticulture registered about KSh 296 billion (US 2.4 billion), a 44.4 per cent of the total domestic exports.
“Through the trade facilitation platform, Kenya Exported approximately 1.2 million tonnes of agricultural products especially tea and horticulture that still stand as our main export,” the report states.
Kenya, Egypt target increased bilateral trade during October forum (Kenya Broadcasting Corporation)
Kenya and Egypt are targeting to increase bilateral trade between the two nations during the upcoming Egypt Kenya Business Bridge Forum slated for next month. “The forum seeks to develop links between more than 34 leading Egyptian manufacturers with trade opportunities and to build valuable contacts with their Kenyan counterparts, as well as connecting Kenyan business communities eyeing the Egyptian market with the right trade partners,” said Khalid El Abyad, Egypt Ambassador to Kenya.
According to Abyad, “Egypt seeks to expand its cooperation and investment in Africa and create investment partnerships in all economic fields and sectors in implementation of the political leadership’s directives to open up to Africa, increase trade exchange, open new markets for Egyptian exports in Africa and vice versa, and activate the implementation of the COMESA agreement.”
Tanzanians urged to engage on carbon trade (Daily News)
TANZANIANS have been urged to engage in the newly introduced carbon trade, killing two birds by one stone — conserving the environment and earning extra income from carbon credits. Carbon trade is the process of buying and selling of credits that permit a company or other entity to emit a certain amount of carbon dioxide or other greenhouse gases. The carbon credits and the carbon trade are authorized by governments with the goal of gradually reducing overall carbon emissions and mitigating their contribution to climate change.
“Carbon trade is a new business and Tanzanians are well placed to do it if they are willing to. It has a lot of advantages, two of which are to safeguard the environment that is our agenda and second to earn some money. Billions have been paid already to some communities on this but some people are not aware of this, we should let them know,” said Dr Manyika.
African trade and integration
Africa still struggling to have common currency, intra-trade activities decades after Nkrumah - Mahama (MyJoyOnline)
Mr Mahama said the continent is still facing challenges of the common currency, Intra African trade amongst others. In his view, this is due to the unwillingness of African countries to unite. “It is clear that we must find an African solution to our problems, which can only be found in African unity. Divided we are weak; united, Africa could become one of the greatest forces for good in the world.”
Southern and Eastern Africa CSOs urged to promote the AU’s Free Movement Protocol (African Union)
African Civil Society Organizations (CSOs) in eastern and southern Africa have been prompted to support and promote the implementation of the African Union’s Free Movement Protocol (FMP) and the Migration Policy Framework for Africa (MPFA). The call to action to CSOs was made during the opening of the second Regional CSO Sensitization Forum on the Continental Free Movement Protocol
The FMP and the MPFA have been established by the AU as the primary policy frameworks to address, manage, and promote migration and mobility on the continent.
Officially opening the forum, through a key note address, Mozambique’s Ambassador to the AU, H.E Alfredo Nuvunga, on behalf of the Minister of Foreign Affairs and Cooperation of Mozambique, H.E Veronica Dlhovo, said despite a number of challenges characterized by the dynamics the world was currently experiencing, free movement of people was a fundamental element for the development and well-being of nations. “These challenges should not intimidate us in opening our borders, on the contrary, they should encourage us in the coordinated search for collective measures both at regional and continental levels for the establishment of an increasingly integrated and prosperous continent,” he said.
Amb. David Claude Pierre, Permanent Representative to AU Southern African Regional Office said the FMP is a tool which could be used to realize other developmental goals as well as facilitate the fulfilment of the objectives of the African Continental free Trade Area (AfCFTA). “Success of the Free movement of persons equals success of the AfCFTA. The success of the AfCFTA will create many jobs for young Africans. The success of the AfCFTA would also lead to significant increase in trade and investment among African countries.” He encouraged AU member states to not only sign, but also to ratify and domesticate it.
Egypt’s Suez Canal hike is set to also affect trade in Sub-Saharan Africa (Business Insider Africa)
The Suez Canal authority released a statement noting that transit fees for tankers passing through the canal will rise by 15%. A 10% increase would be implemented for dry bulk carriers and tourist ships. This hike will take effect from the 1st of January 2023. While this initially felt like a sub-regional issue, its impact may spread across the entire continent, particularly in East Africa.
“East Africa depends on most of its imports from Asia, which uses an alternative channel, whereas goods being exported from the region have to pass through the Suez Canal. This will complicate export, and some ships might opt to change their destinations considering the economies of scale,” chief executive officer of the Shippers Council of Eastern Africa (SCEA), Gilbert Lagat said.
East African exports to Europe majorly include agricultural produce. Crops like coffee, tea, tobacco, cut flowers, fruits, vegetables, and fish. Others are textile and clothing, and handicrafts, are the region’s chief exports overseas.
World Bank Calls on G5 Sahel Countries to Diversify Economies, Scale Up Reforms (Asharq Al-Awsat)
The World Bank on Monday urged five West African countries to diversify their economies to adapt to climate change, warning they are extremely vulnerable to extreme weather patterns. A report said Burkina Faso, Chad, Mali, Mauritania, and Niger -- all in the arid Sahel region -- are among the world’s least developed countries and therefore the most vulnerable to extreme droughts, floods and heatwaves. According to its Country Climate and Development Report (CCDR) for the G5 Sahel region, annual GDP could fall by as much as 11.9% in Niger and by 6.8% in Burkina Faso by 2050 under pessimistic climate scenarios.
The Nationally Determined Contributions (NDCs) under the Paris Agreement and the additional estimates in the CCDR show that over $30 billion are needed across the G5 Sahel countries for climate actions.
With barely two months to go before the UN Climate Change Conference (COP27) in Egypt, Africa and other developing parts of the world that bear the severest brunt of climate change are warning against turning it into a mere talking shop of promises.
African Development Bank Group President Dr. Akinwumi Adesina told the meeting: “Africa is suffering, choking, and is in serious financial distress for what it didn’t cause. There must be a greater sense of urgency not in talking, but in doing and delivering resources that the continent needs very desperately.” He charged the world to deliver at COP 27 -the Africa COP, “we must deliver the goods there. If there are good to be delivered, it’s really about adaptation. We do desperately need to have the financing for adaptation.”
Can today’s Adaptation Action minimize future losses and damages in Africa? (AfDB)
On the sidelines of the 2022 edition of Africa Climate Week, a session titled Limiting Loss and Damage through Enhanced Adaptation Action in Africa featured vibrant and timely discussion of an aspect of climate change that typically receives little attention: capturing and assessing the costs and damages associated with climate change.
Moderator Olufunso Somorin, a Regional Principal Officer at the African Development Bank, opened the discussion. He pointed out that it is important for African countries to measure climate-change related loss and damage to enable appropriate quantification and well-designed responses best suited to country context. It was also important to capture those losses occurred even in instances where preventive climate adaptation actions had been taken, he added.
Africa’s Rapid Economic Growth Hasn’t Fully Closed Income Gaps (IMF)
Many economies in sub-Saharan Africa grew at a record pace before the pandemic. However, it is less clear whether the gains in economic growth have been shared equally across regions within countries because income data at the subnational level are not always available.
To assess the extent to which sub-Saharan Africa ’s strong growth performance spread across subnational regions, IMF researchers used satellite-recorded images of the Earth’s nighttime lights as a proxy for economic activity. The data show that at least until 2010, African countries made tremendous progress in reducing regional income inequality (differences in output per capita across regions of a country). This is in marked contrast with other parts of the world, where inequality either increased or convergence was slower.
Taking a closer look at the factors that affect regional inequality, we found that progress was largely due to improvements in basic infrastructure, which helped lagging regions converge faster to national levels. Night lights per capita increased several-fold in the poorest regions, with the biggest gains in oil exporters and frontier markets such as Ghana and Kenya.
Global economy
DDG Ellard: Trade multilateralism needed to address challenges of global commons (WTO)
DDG Ellard highlighted the benefits of multilateralism and the work of the WTO in establishing rules, monitoring the rules and providing binding dispute settlement. She stressed that some issues can be managed only on a multilateral basis. These issues include the profound challenges of the global commons, such as the health and sustainability of the ocean, climate change and global pandemics. “To tackle them effectively, we need the participation of as many countries as possible — big and small, developed and developing,” she said.
DG Okonjo-Iweala: Trade policy must catalyse green transformation, support climate adaptation (WTO)
“Trade is a tool for adaptation,” the Director-General said. “If we don’t have trade in the short-term, you can’t get goods from where they are to where they are needed. In the long-term, you can’t get goods and technologies needed for adaptation purposes,” she said.
“With the shock of the pandemic, the shock of the war in Ukraine, the continuing climate shocks, and all the consequences of inflationary pressures, we’ve seen that the way we produce and consume in the world is not organized optimally,” the Director-General said, pointing to recent supply chain disruptions such as export restrictions on health-related products, rising shipping costs due to drought and food shortages.
Trade can generate more and better jobs in Southern Mediterranean countries (International Labour Organization)
Even though current crises have disrupted supply chains and severely impacted the volume of international trade and investment, they also have generated new nearshoring opportunities, which might benefit countries in the Southern Mediterranean by boosting export opportunities across different sectors says a recent ILO report. According to The Impact of Trade and Investment Policies on Productive and Decent Work countries in the region grew by about 4 per cent in 2019 and experienced a significant economic slump due to the global COVID-19 pandemic.
The region is weakly integrated into the global economy. In 2019 the Southern Mediterranean countries accounted for less than 0.1 per cent of the global exports and for about 1 per cent of the global import of goods.
India discusses cooperation among IBSA countries in various multilateral fora, including UN, WTO and G20 (Devdiscourse)
India has discussed ways to step up cooperation among IBSA countries in various multilateral fora, including the UN, WTO and G20, on major issues of in the international agenda. The IBSA (India, Brazil, South Africa) has emerged as a key tripartite grouping for the promotion of cooperation in a range of areas.
‘‘The Ministers expressed satisfaction on the coordination and cooperation among IBSA countries in various multilateral fora, including the UN, WTO, WIPO and G20, on major issues of international agenda. They reiterated their intention to further deepen IBSA cooperation on international issues at various International Organisations and groupings,’’ according to a joint statement issued after the 10th IBSA Trilateral Ministerial Commission Meeting.
‘‘They also agreed to make all efforts to reform and strengthen the multilateral trading system and make the WTO more effective and responsive to the needs of its developing country members,’’ the statement said.
The members also underscored the need to continue to make positive efforts to ensure that developing country members, including the least-developed country members, secure a share in the growth of world trade commensurate with the needs of their economic development, it said.
Multilateral development banks can encourage private sector to engage in climate action: Al-Mashat (Daily News Egypt)
Multilateral development banks can also play a pivotal role in stimulating the private sector to participate in climate finance by expanding risk reduction tools and hybrid financing mechanisms, according to Minister of International Cooperation Rania Al-Mashat.
Her remarks came during her participation in the World Economic Forum’s (WEF) panel discussion on the “Geo-Economics of Climate Change”, as part of the 77th United Nations General Assembly (UNGA) in New York.
Al-Mashat said that the climate agenda had become a priority for the international community, in light of the challenges posed by climate change and its impact on development efforts, coupled with the aftermath of the COVID-19 crisis. The Minister emphasized that everyone is required to play an active role in addressing climate change, whether international finance institutions, governments, civil society, non-profit organizations and the private sector.
Africa is doing its part but must do more, says Rwandan President Kagame (UN News)
The Secretary-General’s landmark report Our Common Agenda has only grown in value since it was launched one year ago. But he cautioned that the perception that the international system is no longer up to the task has only deepened.
Despite shortcomings, he flagged that global health was an example that demonstrated how international cooperation can successfully address “the issues that matter to all of us.” In his address to the annual high-level debate in the UN General Assembly, Mr. Kagame paid tribute to the Global Fund to Fight Aids, Tuberculosis and Malaria for saving countless lives in Africa and beyond, while also strengthening health systems.; To increase African’ resilience against future pandemics, he flagged that “external funding must go hand in hand with increased domestic financing for health.” He cited the efforts under way to work with partners to bring vaccine manufacturing to the continent.
Related News
tralac Daily News
Local news
President Ramaphosa concludes positive Washington DC visit (The Presidency)
President Cyril Ramaphosa has concluded his official working visit to the United States at the invitation of President Joseph Biden. The two leaders deliberated on a range of critical issues of national, regional and global importance during their bilateral meeting, where trade, investment, global peace and stability, health, as well as climate change and the just energy transition were discussed.
On trade and investment, there was agreement on the need to create a more attractive environment for American companies to invest in South Africa, where an estimated 600 US companies are already doing business in a range of sectors. A joint task force on trade and investment will be established to expand bilateral economic ties. In 2023 South Africa will host the African Growth and Opportunity Act (AGOA) Forum which will map the next phase of Africa-US trade. President Ramaphosa welcomed the United States’ further commitment to improve bilateral trade and investment volumes, which will create much needed jobs and economic growth in South Africa. President Ramaphosa expressed South Africa’s concerns about tariffs levied by the US on South African steel and aluminium products, which South Africa views as unfair and punitive.
South Africa’s farm exports are an economic lifeline – with weak spots (The Conversation)
International trade has been at the core of South Africa’s agricultural progress since the early 2000s. Since 1994, the country has excelled in opening up new markets, as evidenced by several free trade agreements with critical regional and international markets. The country exports roughly half of its produce in value terms. The top exportable products are high value and labour-intensive horticulture produce, a subsector that expanded significantly over the past two decades. Citrus, table grapes and a range of deciduous fruits dominate the export list. This means international trade has become crucial for sustaining farm profitability and job creation in South African agriculture.
Over the past decade, agriculture and agro-processing exports have averaged 11% of the country’s overall exports, up from 9% in the decade before. This shows South Africa’s success in opening export markets, and farmers’ ability to produce high quality products that meet global standards and needs.
Botswana dry port facility at Walvis Bay enhances trade (New Era)
Namibia and Botswana continue to enjoy good trade relations under the configuration framework of the Southern African Customs Union (SACU),
It comprises a membership of five countries, namely Botswana, Lesotho, Namibia, South Africa and eSwatini. In recent years, Namibia’s merchandise trade with Botswana has increased, with the overall exports to Botswana amounting to N$8.6 billion in 2021 as compared to the export value of N$7.5 billion recorded in 2020. On the other hand, the value of imports from Botswana stood at N$752 million after recording N$978 million in the previous year. The effect of Covid-19 was observed in 2020’s merchandise trade between the two parties, with 2021 showing some recovery from the pandemic.
Though a remarkable trade relation has been observed in recent years, there is a need to maximise the utilisation of trade capacity to boost trade between the two parties.
Zimbabwe’s GDP to decline by half in 2022: IMF (CGTN Africa)
Zimbabwe’s Gross Domestic Product (GDP) growth is expected to decline by about half of its 2021 levels to around 3.5 percent in 2022, the IMF said after a delegation completed a mission to the Southern African country on Monday. The lender attributed the decline to a slowdown in agricultural and energy outputs owing to erratic rains and rising macroeconomic instability, amidst a recovery in mining and tourism.
The IMF pointed out that uncertainty remains high, and the country’s outlook will depend on the evolution of external shocks, the policy stance, and implementation of inclusive growth-friendly policies.
S. Sudan to build harbour in Djibouti as onslaught on Mombasa port continues (Business Daily)
South Sudan has bought a piece of land in Djibouti for the construction of a harbour in its latest effort to find an alternative to the port of Mombasa which is facing an onslaught from Dar-es-Salaam. South Sudan has bought three acres of land at the port of Djibouti for the construction of a facility that will handle its import and export goods as Juba seeks to cut reliance on Mombasa. The latest development comes just two months after the Chamber of Commerce in South Sudan said it will shift its cargo to the port of Djibouti, which it termed as convenient for the Africa’s youngest State.
Mombasa has been the main route for all consignments destined to the landlocked country with South Sudan importing nearly all of its cargo through the Kenyan port. Mr Chol said they were ready to facilitate and stock goods destined for South Sudan through Djibouti.
African trade and integration
The Economic Commission for Africa (ECA) and Standard Bank Group, with the support of the Arab Bank for Economic Development in Africa (BADEA), the Motor Industry Retirement Funds (MIRF) and Copartes Pension Fund and the African Union Commission (AUC), have announced the African Women Impact Fund (AWIF) Initiative’s achievement of its first commitment of USD$60 million. The announcement was made at the inaugural The Global Africa Business Initiative, held from 18 – 19 September during the week of the United Nations General Assembly in New York City.
The existence of gendered stereotypes and racial biases in society have detrimental effects globally. This holds true within the investment space where these prejudices obstruct female entrepreneurship, appointment of women in leadership roles, and empowerment of female fund managers. Of the $69.1 trillion of financial assets under management globally, less than 1.3% are managed by women and people of colour. It is increasingly alarming that only 7% of private equity and venture capital funding is allocated to women-led businesses in emerging markets.
Africa set for fertiliser boom as food crisis remains critical (The East African)
A fertiliser boom is breaking out across Africa as calls for food security gain momentum amidst a widespread continental food crisis. With an estimated 346 million people on the continent negatively impacted by a severe food crisis, according to the Food and Agriculture Organisation (FAO), the use of fertilisers has become more central, even as environmental and green farming activists call for caution. The global production of fertilisers is responsible for around 1.4 percent of annual CO2 emissions, and fertiliser use is a major contributor of non-CO2 greenhouse gas emissions, according to Carbon Brief.
Africa has barely used fertilisers. Only six percent of Africa’s cultivated land is irrigated, and the average fertiliser consumption in sub-Saharan Africa is estimated at 17 kilogrammes of nutrients per hectare of cropland, according to the Alliance for a Green Revolution in Africa (Agra).
African Development Bank launches new tools for SMEs to tap opportunities for green investment (AfDB)
The African Development Bank has released a series of toolkits to assist small and medium enterprises in tapping green investment opportunities contained in countries’ Nationally Determined Contributions (NDCs) under the Paris Agreement. The toolkits, released under the Bank’s Private Sector Investment Initiative for NDCs, were launched on the sidelines of Africa Climate Week, which took place in Libreville, Gabon, from 29 August to 2 September.
The package comprises toolkits on climate risk screening and opportunity assessment tool, business carbon footprint tool, and a guidance note on mainstreaming climate and green growth into Bank’s line of credits. They will help strengthen the capacity of financial institutions and small companies to invest in climate action under the NDCS.
“They will help African SMEs and financial institutions to develop and finance climate-informed projects and support the implementation of the Paris Agreement in African countries,” he said. It is estimated that the cost of Africa’s adaptation to climate change will reach as high as $30 billion a year by 2030.
EU-like energy approach needed in Southern Africa, says Namibia presidential advisor (Mining Weekly)
A collaborative energy approach, like that of the European Union (EU), is needed in Southern Africa, says Namibia presidential economic adviser James Mnyupe. At least South Africa and Namibia should put together a case that shows seriousness about decarbonising sub Saharan Africa, says Mnyupe, with the two countries looking to share with the world the burden of building the required pipeline and transmission line infrastructure.
Mnyupe, who was a panel member at the Hydrogen Economy Discussion, says EU-like collaborative regional and continental approaches are needed in the renewable energy and green hydrogen space. Mnyupe says African policy makers need to be aware of the different policy toolboxes needed for African countries playing different roles.
For example, Namibia is poised to be an exporter of green hydrogen, South Africa perhaps a net importer and others playing self-sufficiency roles. “If you look at Morocco, it may export but it has really large industries that it may need to decarbonise, and South Africa might very well be a good example of that as well. “Depending on what type of country you are, you will need to think strategically about the different pieces of legislation and policy that you would want to be championing.
Following are UN Secretary-General António Guterres’ remarks to the Global Africa Business Initiative, “Unstoppable Africa — Africa Leading the World”, in New York today:
Africa is unstoppable. Africa is an essential part of global business and a major investment destination. Africa includes some of the world’s fastest growing economies. And Africa has more — much more — to offer. Every sector of the African economy is growing — from manufacturing to agriculture, from services to finance.
Africa is facing tremendous headwinds and crises not of its own making: from COVID-19 and climate chaos, to the war in Ukraine; from growing inequalities, a cost-of-living crisis, and the reversal of the Sustainable Development Goals; to a global financial system that is rigged against Africa and requires fundamental reform. But we are here together because we know the time has come for action based on a new narrative: highlighting the opportunities for new financing models and technologies; recognizing the emergence of Africa’s creative and cultural industries on the global stage; focusing on climate transition and transforming food systems; and ensuring the full participation of women, young people, and the African diaspora.
Global economy
Climate Change Is Shaking the Global Economy. IMF and WTO Demand a United Front (Barron’s)
The heads of the International Monetary Fund and World Trade Organization on Monday warned about the risk of inaction on climate change and called for broad collective action at a time when threats from extreme weather events are escalating around the world.
“We need to recognize that we live in a more shock-prone world. This is not just a blur and it’s going to go away. And the topic of this week, climate, this crisis is already hitting us like a ton of bricks,” said Kristalina Georgieva, managing director at the IMF, at an event for the opening of Climate Week in New York City.
Agriculture meeting highlights food security, urgency of implementing MC12 outcomes (WTO)
A heated debate took place in the informal meeting on 14 September, with an urgent call by some WTO members for establishing a work programme dedicated to helping net food-importing developing countries (NFIDCs) and least developed countries (LDCs) deal with food insecurity.
On the table were two proposals submitted by Paraguay (G/AG/W/223) and Egypt (G/AG/W/224), offering initial thoughts on how to structure the process going forward. Members agreed to having an open and flexible format and taking up a set of themes under the framework of the work programme. Some developing members highlighted the importance of examining food insecurity in light of the current situation and considering the policy space needed to build resilience. Some members, however, warned that discussing new flexibilities might entail negotiations that fall within the purview of the ongoing agriculture negotiations.
‘SDG Moment’: World leaders push for urgent action to rescue global goals (UNCTAD)
The world has a long “to do list” to build a safer, healthier and more inclusive world by 2030, and on 19 September global leaders at the United Nations General Assembly (UNGA) called for urgent action to get back on track. Time is running out to achieve the 17 Sustainable Development Goals (SDGs) – the midpoint for implementation is 2023 – and the combined crises of the war in Ukraine, the COVID-19 pandemic and the climate emergency are pushing the goals further out of reach. To turn the tide, UN Secretary-General António Guterres convened a 90-minute “SDG Moment” to kick off the UNGA’s high-level week and spur stronger commitments to ensure the successful implementation of the goals.
UNCTAD chief Rebeca Grynspan joined Mr. Guterres, other UN leaders, heads of state, Goodwill Ambassadors and global activists to highlight transformative solutions to rescue the SDGS. These included a call to reform the global financial system and boost investment in SDG-related sectors, such as health, education and renewable energy. When the goals were adopted in 2015, UNCTAD estimated at $2.5 trillion the SDG investment gap for developing countries. The gap has swelled to an $4.3 trillion abyss in the wake of the pandemic, and the war in Ukraine is expected to further widen it.
BRICS trade in services report offers insights for growth (ITC)
BRICS countries – Brazil, the Russian Federation, India, China and South Africa – are increasingly important players in global services markets, despite pandemic-induced setbacks. BRICS countries accounted for 10% of global services exports and 13% of global services imports in 2020. The International Trade Centre report, BRICS Trade in Services Report 2022, finds that BRICS countries can improve competitiveness in services trade by improving domestic policies, developing stronger business networks, leveraging regional transport and logistics initiatives and improving data collection and sharing the information between BRICS regulators.
Egypt’s Suez Canal fee hike won’t have a ‘massive’ impact on trade flows, analyst says (CNBC)
Egypt announced on Saturday that it will raise transit fees in 2023 for all types of vessels passing through the Suez Canal. According to a statement released by the Suez Canal Authority, transit fees for tankers passing through the canal will rise by 15%. The increase for dry bulk carriers and tourist ships is 10%. The fee hikes will take effect on Jan. 1, 2023.”The increase is inevitable and a necessity in light of the current global inflation rates,” the authority’s chief, Osama Rabiee, said in the statement.
An analyst told CNBC that while the rise in Suez dues won’t have a “massive impact” on trade flows, it will fuel ongoing inflation. ”Oil prices are currently dropping and so if the canal prices itself out against the competition (which is going round Africa) then the Canal Authority would lose out,” said the chairman of Mandarin Shipping, Tim Huxley. Global oil prices have had a choppy year — from skyrocketing to more than $130 per barrel after the Russian-Ukraine war broke out, to tapering to around $80-$90 per barrel in recent weeks.
“The savings of sailing via the Suez Canal are still very large, particularly due to ... very high oil and bunker prices. In addition, the shipping markets are generally seeing high demand and low vessel availability. This also encourages shipowners to send vessels via the fastest routes,” said Niels Rasmussen, chief shipping analyst of shipping association Bimco. Rasmussen said that he does not expect shipowners to turn to alternative routes, such as sailing south of Africa. ”Shipping markets are generally seeing high demand and low vessel availability. This also encourages shipowners to send vessels via the fastest routes,” said Rasmussen.
G7 nations to take tougher line on trade with China (The Associated Press)
The Group of Seven major economies have agreed to take a tougher, more coordinated stance toward China when it comes to trade, Germany’s economy minister said Thursday. After a two-day meeting with fellow G-7 officials, Minister for Economic Affairs and Climate Protection Robert Habeck told reporters that discussions about China were part of an effort to ensure high international trade standards and to prevent Beijing from using its economic might to steamroll other nations. “The naivety toward China is over,” Habeck said, referring to Germany’s own position on China. “The time when one said ‘Trade, no matter what,’ regardless of the social or humanitarian standards, ... is something we shouldn’t allow ourselves anymore.”
He said Germany would work to persuade the European Union to establish “a more robust trade policy toward China and respond as Europeans to the coercive measures that China takes to protect its economy.”
Related News
tralac Daily News
Local news
Big changes proposed for carbon tax in South Africa (BusinessTech)
The Energy Council of South Africa, alongside other big business figureheads, have put forward recommendations for the country’s carbon tax under the proposed Taxation Laws Amendment Bill. As a multi-representative body, including Business Leadership South Africa (BLSA), Business Unity South Africa (BUSA), the South African Petroleum Industry Association (SAPIA) and Energy Intensive Users Group (EIUG), the group said that there are key areas that can be improved on the proposed carbon tax to advert identified unintended consequences. The energy council said that business is sharing recommendations to avoid just transition impacts earlier than planned and to avoid unintended or adverse consequences to an already fragile economy.
“Business’s priority is to positively fulfil our role for a decarbonised and sustainable South African economy. We are committed to an energy transition that is just and equitable for the country and look forward to partnering with the South African government to realise this journey,” said the council.
The group listed the following six changes: 1) Revision of the carbon tax proposal; 2) Retaining the current allowance and introducing more policies; 3) Revision of implementation timelines; 4) Bottom-up analysis for hard-to-abate and vulnerable sectors; 5) A study of carbon tax pass-through; and 6) Enabling a just transition
South Africa’s $8.5 billion move away from coal comes with a big catch (BusinessTech)
President Cyril Ramaphosa’s pledge to lessen the country’s dependency on coal energy has been green-lit, but the money promised by foreign jurisdictions is coming with more terms and conditions than expected. Speaking to Bloomberg, minister of environment, forestry and fisheries, Barbara Creecy said that the government underestimated how complicated the offer was when it was made. She said that there are several partners and development institutions involved, and they have their own terms and conditions based on their individual fiscal cycles.
According to a study conducted by COP26, South Africa is the world’s 13th biggest source of greenhouse gases and will need to spend over $250 billion over the next 30 years to fund the closing of coal-fired plants and develop green alternatives. Creecy said negotiators are discussing what proportion of the climate funding pledged by the US, UK, Germany, France and European Union last year will be in the form of concessional loans and grants.
UBA DMD Urges Exporters to Repatriate Proceeds to Ease Forex Pressure (This Day)
The Deputy Managing Director of the United Bank for Africa (UBA) Plc, Mr. Muyiwa Akinyemi at the weekend advised exporters in the country to always repatriate their proceeds back to the country in order to ease pressure in the foreign exchange (forex) market, support the naira and boost the economy. Akinyemi, said this in a presentation titled: “Boosting Domestic Capacity for Sustainable Export Earnings – UBA Perspectives,” he delivered at the 2022 annual conference of the Finance Correspondents Association of Nigeria (FICAN), held in Lagos.
“Most times exporters people complain that the Central Bank of Nigeria (CBN) does not give dollars, but then exporters must also do their part. A lot of export proceeds are not being repatriated to Nigeria today and that is a challenge.
In his presentation, Akinyemi, noted that 200 exporters accounted for 95 per cent of the $4.2 billion Nigeria earned from non-oil exports in the country in 2021. He explained that the $4.2 billion recorded in 2021, did not include informal exports largely in the wholesale trading in some sectors such as information technology, entertainment and solid minerals.
Zimbabwe must step up to increase exports, says UK (Bulawayo24 News)
The United Kingdom (UK) embassy said Zimbabwe could boost its exports to the European country through the Economic Partnership Agreement (EPA), but said it needed to step up. The British head of trade policy, Southern Africa, Charlie Morris made the revelations while making his presentation on the topic of accessing the UK market post Brexit at a two-day National Trade Tariff conference at the Zimbabwe International Trade Fair (ZITF) premises in Bulawayo last week. Morris said there were some changes to UK’s import controls that had been applied from January 2021 based on principles set out in the World Trade Organisation.
“Trade does not come in a vacuum, support is there for the export capacity of Zimbabwe, exports are key features of trading. There are some changes to the UK’s phytosanitary import controls that have been applied since January 2021,” Morris said. “As a result of these changes, some commodities have been deregulated, and this includes citrus fruit and leaves. Stronger requirements have been introduced for some other commodities.
NECA to Government: Don’t Tax Us Out of Existence (This Day)
A member of the organised private sector of Nigeria (OPSN) has called on the federal government to avoid increasing the burden on operators in the real sector of Nigerian economy with additional taxes and stringent regulatory environment. This call was made yesterday by the Director General of the Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde, in a statement titled, “Beyond Rhetoric: NECA Calls for Urgent Action to Save the Real Sector.”
Oyerinde stated that while it was necessary and critical to for government to generate revenue to fund the 2023 national budget and liquidate interest accruing on its debts, “government will do well not to further burden the real sector with additional taxes and stringent regulatory environment.” He argued that, “it is in the best interest of government to protect the real sector rather than tax it out of existence.”
“As the AfCFTA comes into full swing, Nigeria cannot afford to become a dumping ground for cheap imported products because we have refused to protect local businesses. As a panacea to the ever reducing Foreign Direct Investments, rising unemployment and multi-facet revenue challenges, government and its agencies must protect local businesses and make the operating environment more hospitable.”
Five ships discharge N54.2bn soya bean oil at Lagos Port (New Telegraph)
Despite Nigeria being the second producer of soya bean in Africa, five vessels have offloaded 48,566 tonnes of soya bean oil valued at N54.2 billion ($77.4 million) at the Lagos Port Complex, Apapa, in three months.
The price of the oil is $1,598.78 per tonne in the global market as Argentina, the world’s top exporter of processed soya oil and meal, hiked its tariff by 33 per cent due to Russia’s invasion of Ukraine and drought.
Nigeria’s soy bean annual production is estimated at 1.25 million tonnes valued at N475.4 billion ($679.18 million), while South Africa produces two million tonnes yearly. Presently, soy bean oil is a major complement to palm oil in the domestic supply equation for edible vegetable oils in the country, leading to a rise in demand from infant food manufacturers, who use soybeans because of its high nutritional value. Between 2018 and 2021, Nigeria imported 1.6 million tonnes of soya meal valued at N532 billion ($760 million).
African trade and integration
Crisis ‘wakes Africa up’ to cut food import reliance (The New Times)
Africa’s annual food import bill more than tripled from $15 billion during the food crisis of 2008 to about $55 billion amid the current one, according to the Alliance for a Green Revolution in Africa (AGRA). Agriculture sector experts hold that this trend should be reversed, as the situation is costing jobs and livelihoods to the continent’s citizens.
The African Development Bank (AfDB) also projected that the continent’s food import bill was anticipated to rise to $110 billion within the next three years – by 2025 – if the status quo is not changed.
During the 12th African Green Revolution Forum (AGRF) Summit which concluded in Kigali on September 9, “Heads of state stressed the need to boost Africa’s food production to reduce the need for imports and be better able to withstand shocks, and to increase public expenditure,” according to a resulting declaration.
IMF roots for cross-border Africa trade to stem rising food insecurity (The East African)
The International Monetary Fund is appealing to African countries to open up their local markets to commodities from their regional peers as a long-term solution to persistent food shortages. Last week, the fund released a policy paper urging countries to expand cross-border trade to better deal with the rising food crisis on the continent. According to the paper “How Africa can Escape Chronic Food Insecurity amid Climate Change”, only 15 percent of food imports into the continent are from neighbouring countries.
“African countries have not lifted most of the restrictions even though it could benefit both net food importers and exporters from trading with one another,” states the document authored by a team of African economists.
“In the context of climate change, greater regional trade integration can enhance food availability and affordability,” the paper says. “Combined with resilient storage and transport infrastructure, it can facilitate sales of one country’s bumper harvests — that may have gone to waste — to a neighbouring country facing shortfalls.”
AfCFTA positioning women and youth as drivers of intra-African trade (Graca Machel Trust)
The African Continental Free Trade Area (AfCFTA) Conference on Women and Youth in Trade, convened under the patronage of Tanzania President H.E. Samia Suluhu Hassan and in conjunction with the Government of Tanzania, Champion of Women and Youth in Trade under the AfCFTA Conference themed “Women and Youth: The Engine of AfCFTA Trade in Africa” took place from 12 to 14 September 2022, in Dar-Es-Salam. Women, youth, and political and business leaders from across the continent joined arms to discuss how women and youth as drivers of intra-African trade can be positioned at the centre of the economic benefits of the AfCFTA.
Ms Chisha acknowledged the contributions of women and youth to the economy. She said, “if women can successfully trade amongst themselves in an improvised manner, only their imagination can limit how far they can go when they are eventually all supported with the right financial and technological tools to trade across borders and thereby scaling up their enterprises.”
“The AfCFTA, now supported by the Protocol on Women and Youth in Trade, will not just integrate the continent but is meant to draw from the power of women entrepreneurs locally, regionally, inter-regionally, and at the continental level”, said Representing Graça Machel Trust, Ms Shiphra Chisha, the Trust’s Director of Programs. She also emphasised that there is a need for budget planners and decision-makers to ensure the allocation of funding to train women and support local businesses so that women will have the financial, technological, legal, and administrative understanding to engage in transnational trade.
Africa’s Has An Untapped Export Potential Of $31 Billion (Africa.com)
United National Conference on Trade and Development says Africa’s untapped export of $31 billion can be achieved if Africa implements partial tariff liberalisation under the African Continental Free Trade Area (ACFTA) Agreement over the next five years. Currently, trade between African countries comprises 61% of processed and semi-processed goods. Infrastructure and the harmonisation of logistics will make the AfCFTA fly, including simplicity of moving goods, automation, services across countries and cross-border clearance processes, among other challenges hampering trade.
According to Jürgen Maier, Owner of Mobility Advisors in Switzerland and Partner and Adviser at the Transport Evolution Africa Forum and Expo 2022, automation is one of the key areas to increasing Africa’s transport efficiency and customer orientation. However, in order to achieve the full benefit of automation, the industry must ensure that it incorporates the following trends into a comprehensive and collaborative growth strategy.
“What’s still missing, is a clear, legal master plan that defines benchmarks and framework conditions, and serves as a starting point for sustainable, cost-effective, coordinated, and successful development,” adds Maier. “This plan should cover automation, processes, digitalisation as well as legal and technical harmonization. Most importantly, for automation to fulfill its full potential, the overall system needs to be co-developed on common principles, not just at a national level, but in partnership with AfCFTA.”
Senegalese President and African Union chairperson Macky Sall has told development partners of the African Development Fund (ADF) to allow the fund to tap capital markets for more resources to meet the critical development needs of member countries. The African Development Fund is the African Development Bank Group’s concessional lending arm that supports the continent’s low-income countries
Sall said: “These are tough times for governments. We need investment and development. Today, youth are raising their voices, demanding employment. They are impatient. Governments must listen and invest more to create jobs and make African economies more competitive. The African Development Fund needs significant financing and should be allowed to go the capital markets.”
Speaking earlier at the start of the third ADF-16 replenishment meeting, Adesina said a significant addition of resources would help the fund address multiple challenges, notably, the devastating impacts of Covid-19, rising debt and economic vulnerability, a growing climate change disruption, and the threat of a food crisis triggered by Russia’s war in Ukraine.
Kenya’s new move on SGR to upset China and Uganda (The East African)
This week’s order by Kenyan President William Ruto to revert cargo clearing services to the port of Mombasa could upset China and Uganda, the port’s biggest clients, and trigger anxiety among major players who depend on it. The order, issued as President Ruto took office, is set to have far-reaching ramifications.
The key question is what China’s reaction will be, given that Kenya must still meet its end of the bargain on the standard gauge railway (SGR) cargo operation numbers and debt repayments. But more importantly, will be whether port operations’ efficiency that has currently seen goods reach Uganda in a record four days after being offloaded at the Mombasa port will continue. The shortened time was due to the seamless systems that directly fed the SGR, and onwards to the Nairobi Inland Container depot and the Naivasha dry port.
Kenya’s move also comes as neighbour Tanzania steps up its efforts to connect the Dar es Salaam port with other East African countries through the Central Corridor.
He said his actions were aimed at restoring thousands of jobs that had been lost in the logistics sector in Mombasa when former president Kenyatta issued an order for all cargo coming through the port of Mombasa to be hauled by the SGR, and cleared at either Nairobi or the Naivasha Inland Container Depot (ICD).”This afternoon, I will be issuing instructions for clearance of all goods and other attendant operational issues to revert to the port of Mombasa. This restores thousands of jobs in the city of Mombasa,” said President Ruto on Tuesday. But even as cargo operations are ordered back to Mombasa, the question now is how Kenya will repay the SGR loan considering that the repayments will more than double in the financial year starting this July, when there will be increased payment of principal sums to the Exim Bank of China for the project.
Uganda furious at EU for censuring oil project over rights abuse (The East African)
The Ugandan parliament has dismissed a resolution by the European Union (EU) parliament to halt the development of the country’s oil sector, citing environmental concerns and human rights abuses, as economic racism. Thomas Tayebwa, deputy Speaker of the Ugandan parliament, said the motion by the EU parliament seeks to curtail the progress of Uganda’s oil and gas developments and by extension, the country’s socio-economic growth and development. “It also seeks to deny Ugandans and East Africans the benefits and opportunities from the oil and gas sector. This represents the highest form of economic racism against developing countries,” Tayebwa said.
Earlier, the European Parliament had fingered the joint oil production and transportation by Uganda and Tanzania, calling on the EU and the international community to exert “maximum pressure” on the two countries over associated human rights abuses and environmental concerns.
Europe bias against EACOP (The Independent)
The EU resolution speaks of general lack of compliance with human rights standards and human rights violations around the East Africa Crude Oil Pipeline (EACOP) project in Uganda and Tanzania, wrongful imprisonment of human rights defenders, arbitrary suspension of NGOs, eviction of hundred from their land without fair and adequate compensation, and blocking human rights activists, journalists, and civil society groups from accessing the oil activity region. The EU motion argues this will enable Ugandan and Tanzanian authorities, as well as the project promoters and stakeholders “to better safeguard protected and sensitive ecosystems and the water resources of Uganda and Tanzania, limiting the vulnerability of the watersheds in the African Great Lakes region, which is a critical resource for the region”.
Africa domestic flights set to grow at 6pc (The East African)
Aircraft maker Boeing says intra-regional and domestic flight networks across Africa will grow at 6.1 percent compound annual growth rate (CAGR), driving a 20-year demand for 1,010 new airplanes by 2040, valued at $176 billion. The firm said this week that with Europe remaining the most prominent origin/destination for African carriers, overall African air traffic growth is forecast at 5.2 percent, the third highest globally. Boeing provided the data as part of its 2022 Commercial Market Outlook, the company’s long-term assessment of global demand for commercial airplanes and services.
According to the statement, African aviation traffic has recovered strongly in 2022, with pent-up demand and economic growth driven by higher global commodity prices allowing African airlines to recover flight operations to 80 percent of pre-pandemic levels.
“African carriers are well-positioned to support inter-regional traffic growth and capture market share by offering services that efficiently connect passengers and enable commerce within the continent,” said Randy Heisey, Boeing managing director of Commercial Marketing for Middle East and Africa.
Okonjo-Iweala, Dangote, Adesina, others for Nigeria’s global investment forum in New York (Vanguard)
The Federal Government, in collaboration with the Africa Business Roundtable, is organising the second edition of the Nigeria International Economic Partnership Forum, NIEPF, a global economic investment platform, this time in New York, United States. The business roundtable is in furtherance of the Federal Government’s bid to open up the country’s economy to international capital and attract foreign investments.
A statement by Senior Special Assistant to the President on Media and Publicity, Garba Shehu read: “Holding alongside the annual global gathering, the NIEPF is expected to draw the presence of world leaders in politics, economy, media as well as Civil Society organisations and international media to focus on the vast economic potentials of Nigeria and Africa’s leading economy.”
South Africa, Egypt, and Nigeria possess 56% of Africa’s wealth (Quartz)
Rich countries are donating more money than ever towards food aid in poorer countries. But that money is a bit like a band-aid that doesn’t heal the underlying wound, billionaire Bill Gates explained to Quartz in an interview this week. Instead, he said, donors should be much more focused on supporting basic agricultural research. That way, improvements to protect crops from climate change and boost their yield—technology that is now standard-issue in rich countries and for their staples, like corn and wheat—can be adapted to the climate conditions of sub-Saharan Africa and to crops like cassava and yam. “Certainly without better seeds, we are going to fall short,” he said.
It’s not just food security. The world is not on track to meet almost any of the “sustainable development goals” adopted by the UN in 2015, according to a new report by the Bill and Melinda Gates Foundation. Climate change, the pandemic, and the war in Ukraine all threw wrenches in the works, Gates explained. But donor countries are also stuck in outmoded approaches to aid that undervalue the potential impact of local scientific innovation, which requires sustained, long-term investment, he said.
Looking ahead to the COP27 climate summit in Egypt in November, Gates also said the focus by activists and the host country on climate aid finance may be a distraction: “I hope the meeting ends up being a constructive thing, and not just a shrill “where’s-the-money?” thing,” he said.
Global economy
New DHL: Trade growth atlas global trade surprisingly strong despite recent shocks (DHL)
DHL and NYU Stern School of Business have published the new DHL Trade Growth Atlas, which maps the most important trends and prospects of global trade in goods. The report covers 173 countries, providing valuable business intelligence for policymakers and industry leaders. It shines a positive light on the resilience of global trade – despite recent shocks and market pessimism.
“Our aim is for the DHL Trade Growth Atlas to become a go-to resource for understanding and navigating shifts in the global trade landscape. Trade will remain a key driver of prosperity – as it has been for centuries. In the current global business environment, DHL can help customers rethink certain supply chains, basing them on a sensible trade-off between cost and risk so that they are both efficient and secure. As the world’s leading logistics provider, we offer solutions for all logistics requirements, and have proven to provide stable and reliable services even in volatile market environments,” says John Pearson, CEO of DHL Express.
Sea-Intelligence says carriers have earned nearly $42bn in Q22022 (Africa Aviation News)
Major shipping lines recorded a combined earnings before interest and tax (EBIT) of $41.6 billion for Q22022, and this is discounting CMA CGM that only issued a press release so far, which does not list EBIT, according to the latest update from Sea-Intelligence.
“We should stress that we do not mean this as a value judgement on whether shipping lines making money is a good or a bad thing, and we note it has generally been an unprofitable business for the past decade or so. We are merely pointing out the unprecedented nature of the current market dynamics.”
E-commerce talks resume following summer break, Mauritius joins the initiative (WTO)
The latest cluster of meetings tackled several topics, including implementation periods for a future agreement on e-commerce, in particular for developing and least developed countries, access to online platforms and competition in electronic commerce. The negotiators continued to seek convergence on topics such as cyber security, privacy, telecommunications services, electronic invoicing and electronic transaction frameworks. Two more clusters of meetings will take place in October and November, with co-convenors aiming to issue a more streamlined negotiating text towards the end of this year.
A “stocktaking session” looked at several proposals that have not yet attracted universal support from participants in the negotiations. The proposals were examined to help their proponents decide how to take these proposals forward. Following the withdrawal of proposals from single proponents in July, a further proposal was withdrawn in September due to lack of support. The co-convenors commended members for their flexibility in this regard.
Guterres: ‘Global addiction to fossil fuels’ must end and a ‘renewables revolution’ jumpstarted (UN News)
Achieving a just and equitable energy transition is “one of the biggest challenges facing our world,” UN Secretary-General António Guterres told the Global Compact Board meeting on Sunday.
Climate disasters and skyrocketing fuel prices have made the need to “end our global addiction to fossil fuels” crystal clear, he said, underscoring the importance of investing in renewables, building resilience, and scaling up adaptation. “Had we invested massively in renewable energy in the past, we would not be in the middle of a climate emergency now”.
Renewables are “the only credible path” to real energy security, stable power prices and sustainable employment opportunities, said the UN chief. “Leaders in business as well as government must stop thinking about renewables as a distant project of the future”, underscored the top UN official. “Without renewables, there can be no future”.
Report: Global Internet Bandwidth Rose by 28% in 2022 (This Day)
New research has discovered a rise in global internet bandwidth by 28 per cent in 2022, with TeleGeography, a global telecommunications market research and consulting firm, saying it now stands at 997 Tbps with a four-year CAGR of 29 per cent. The research has also seen that demand quickly transcends terabyte measure this year compared to 2020. According to the report, Africa experienced the most rapid growth of international internet bandwidth, growing at a compound annual rate of 44 per cent between 2018 and 2022.
Asia is right behind Africa, rising at a 35 per cent compound annual rate during the same period. Despite this slower growth rate, global internet bandwidth has almost tripled since 2018. The growth in international internet bandwidth and internet traffic remains similar.
Broadband Commission highlights role of digital technology in globe’s future (Mirage News)
Digital technologies should form the foundation of education and skills-building as communities continue to adapt to the realities brought on by the COVID-19 pandemic, according to the Broadband Commission for Sustainable Development, which met on Sunday at its annual fall meeting. The Broadband Commission, made up of public and private sector leaders, makes policy recommendations centered around broadband connectivity to accelerate progress towards achieving the UN’s 2030 Agenda for Sustainable Development.
At the New York meeting, the global technology and development body also emphasized the need for public-private cooperation to develop national strategies to enhance digital skills and advance school connectivity.
“We have made significant progress globally in ensuring universal access to broadband continues to improve, but much remains to be done,” said Paula Ingabire, Rwanda’s Minister of Information Communication Technology and Innovation representing Rwandan President Paul Kagame, Co-Chair of the Commission
During the meeting, convened ahead of the U.N.’s Transforming Education Summit at the opening of the 77th Session of the U.N. General Assembly, the Commission called for universal, inclusive and affordable connectivity for the digital transformation of education. “Accelerating broadband for the new realities of a rapidly changing world is as important as it is timely,” said Catherine M. Russell, Executive Director of UNICEF and a Commissioner of the Broadband Commission
The meeting also explored innovative approaches to increasing affordability of access to digital services and devices-including for home-based work and learning-with a focus on micro, small and medium-sized enterprises (MSMEs) and the most vulnerable populations. The approaches examined considered the current economic environment.
Related News
tralac Daily News
Local news
Rebuilding economy tops leaders’ conference agenda (SAnews)
Finance Minister Enoch Godongwana says the country’s economy faces an urgent need to rebuild infrastructure, finance the just energy transition and improve growth prospects. The Minister was delivering a keynote address at the Government Employees Pension Fund (GEPF) Annual Thought Leadership Conference 2022 at the Cape Town International Conference Centre on Thursday.
He explained that the Russia-Ukraine conflict is manifesting through a threefold crisis: access to food, energy and finance. Speaking on the domestic economic outlook and the impact of the geopolitical landscape on South Africa’s economy, he said the conflict is a powerful example of how economies are integrated.
“The conflict has created a new set of multi-dimensional risks to our economic outlook and to fiscal and monetary policy,” the Minister said, adding that it has also exacerbated the supply chain bottlenecks that emerged during the COVID-19 pandemic.
“We have already seen the impact of these developments on the latest GDP numbers. This has had a major impact on the cost of our debt, as well as that of our imports. Just last week, our external account turned negative for the first time in a long while.
“While commodity prices have begun to fall, the price of coal, one of our largest exports, continues to rise,” Godongwana said. “We have also learnt that this rapid change comes with a number of risks, but it also comes with opportunities; opportunities to improve how we do things, as well as opportunities to prepare ourselves better for the changes that lie ahead,” he said.
SA puts trade on top of agenda for Ramaphosa’s meeting with Biden (Daily Maverick)
Trade, rather than the war in Ukraine, is likely to top the agenda of President Cyril Ramaphosa’s meeting with US President Joe Biden at the White House on Friday. That, at least, is how Pretoria sees it. However, Pretoria came a little closer this week to condemning Russia for its invasion of Ukraine, perhaps in preparation for the meeting with Biden. But winning Biden’s support for a further extension of the Africa Growth and Opportunity Act (Agoa), which gives South African exports duty-free and quota-free access to the lucrative US market, will certainly be a higher priority for Pretoria. International Relations and Cooperation Minister Naledi Pandor noted in Washington this week that Agoa is due to expire in 2025 and that Pretoria hopes that it will be extended beyond that date. Agoa has boosted South African exports to the US, especially in value-added goods, such as cars, as she pointed out.
Devil in detail of South Africa’s $8.5bn climate funding (Engineering News)
A proposal by wealthy nations to mobilise $8.5-billion for South Africa to help reduce its dependence on coal has proved more complex than anticipated, which has stalled its implementation. The money was offered to South Africa at United Nations climate talks in Glasgow last year under a deal that was seen as a possible blueprint for helping other coal-reliant developing countries transition to using cleaner energy. Details of the types of financing that will be made available and the terms and conditions attached to it are still being hashed out, along with South Africa‘s investment plans, said Barbara Creecy, the nation’s environment minister.
Energy security critical for economic reconstruction and recovery (Devdiscourse)
Mineral Resource and Energy Deputy Minister, Dr Nobuhle Nkabane, says energy security is critical for economic reconstruction and recovery, particularly for a developing economy. “We are implementing the Integrated Resource Plan (IRP) 2019 and driving required policy reforms to increase investment and ascertain energy security of supply,” Nkabane said. Addressing a media briefing in Cape Town on the forthcoming Southern Africa Oil and Gas Conference to be held on Friday and Saturday, Nkabane said hydrocarbons, including oil and gas, will remain part of the global energy mix, including South Africa’s energy mix, into the foreseeable future.
Nkabane said in retrospection within the energy space, the department has been placing emphasis on the development of indigenous oil and gas resources to reduce major dependencies on the imports of petroleum products, which contributes towards worsening South Africa’s economic status on the balance of payment.
Eradicating Barriers to Export Business in Nigeria (This Day)
Among many factors identified as impediments to successful export of Nigerian goods at a recent conference, two challenges stood out, which include making product acceptable in the international market and eliminating bureaucracies and protocols at the ports. Chinedu Eze writes that government and its agencies must review and enforce smoother process to export of potentially multi-billion dollars Nigerian goods Last week, stakeholders from aviation, trade and transport sectors of the nation’s economy, brainstormed at the 2022 edition of the Chinet Aviation and Cargo conference held in Lagos and brought to the fore many challenges impeding export trade in Nigeria. From not meeting international standardisation, inefficient regulation, corruption to hiccups in cargo freighting from the nation’s airports, the expose at the conference made it obvious that for many reasons, it is Nigeria that is holding itself down from taking advantage of the huge market, whereas Nigerian farm produce and other products from Nigeria are in high demand from different parts of the world.
‘How weak structure, productive capacities worsen Nigeria’s vulnerability’ (The Guardian Nigeria)
The United Nations Conference on Trade and Development (UNCTAD), Centre for the Study of the Economies of Africa (CSEA) and renowned economists and development experts yesterday, in Abuja, said Nigeria’s economy calls for serious concerns unless urgent actions are taken.
“Nigeria is an extractive sector-driven economy, where oil and natural gas account for more than 80 per cent of the country’s exports. This structural economic rigidity poses inherent labour market challenges and offers little flexibility to absorb job seekers in the national economy. “This is because extractive sectors by their nature are capital intensive and generate a relatively small proportion of employment. “The Nigerian economy, which is dependent on natural capital and the export of raw or unprocessed commodities, is subject to the vagaries of external shocks- be they economic, political or health related. Due to the impact of the COVID19 pandemic, Nigeria’s economy is expected to face the most severe recession in decades: GDP dropped by nearly four percent in 2020 and the recovery for 2021 and 2022 remains sluggish.
Senegal seeks to cash in on global dash for gas (African Business)
President Macky Sall of Senegal has become a popular figure on the international stage. His country’ gas reserves, from which exports are due to start in the next couple of years, are now the target of intense interest by European leaders desperate to find alternatives to Russian gas following Russia’s invasion of Ukraine in February 2022.
When German Chancellor Olaf Scholz visited Senegal in May, he said securing LNG supply from the country was “a matter worth pursuing intensively”. The UK is already heavily involved in the offshore sector, where BP is the operator for the gas export projects. The EU’ energy commissioner dropped into Dakar earlier in the year.
Sall, for his part, has been playing up Europe as a destination for LNG, noting that Senegal’s position at the western extremity of Africa puts it just a few days’ shipping time from European markets, while also suggesting there would be competition from Asian buyers.
African trade and integration
Tough negotiations still lie ahead for Africa Continental Free Trade Area (IOL)
Tough negotiations are happening behind the scenes between African governments to hammer out differences in their localisation and industrial protection policies in respect of the aims of the Africa Continental Free Trade Area (AfCFTA), which seeks to liberalise trade between the countries.
This was according to Trudi Hartzenberg, an executive director of the Tralac Law Centre, who spoke about the imminent commencement of inter-continental trade at the Eastern Cape Export Symposium yesterday.
She said the problem was that almost every country had its own industrial protection and localisation policies, including Special Economic Zones, but in the context of the proposed liberalised trading regimes of the AfCFTA some countries might argue that these concessions unfairly pitted the industries and companies of some countries against their counterparts in other African countries.
Dr Clive Vinti, an associate at XA International Trade Advisers, said the South African government needed to specify more clearly what it meant by its localisation policies, such as did it pertain to products being made locally, or locally sourced raw materials being used in product manufacture, or percentages of raw materials used.
Africa looks to assist youth, women in economy (The Herald)
As a trade conference focusing on women and youth drew to a close in Tanzania on Wednesday, African leaders have discussed recommendations to enhance the roles of women and youth in Africa’s economic integration agenda. Among the topics discussed during the African Continental Free Trade Area Conference on Women and Youth in Trade held in Dar es Salaam are the removal of all nontariff barriers, massive investment in human resources and easy access to loans to help increase participation of youth and women in intra-Africa trade.
“When our people approach regional or international markets, there are a number of nontariff barriers such as permits, licenses and so on. If the whole of Africa is working to remove the nontariff barriers, then business is going to grow,” President Hassan said.
Monique Nsanzabaganwa, deputy chairperson of the African Union Commission, expressed the need for having supportive policies in place that will bolster trade within Africa by tapping into the great human resource potential of innovative youth on the continent.
East Africa’s bloc launches trade policy to boost integration (Xinhua)
The Intergovernmental Authority on Development (IGAD), an East Africa bloc, on Thursday launched a trade policy in order to boost regional integration. Fatuma Adan, head of Mission for Kenya at IGAD, told journalists in Nairobi, the capital of Kenya that the IGAD trade policy is designed to create an open and unified regional economic space that will boost intra-IGAD trade by creating the necessary environment and removing obstacles to trade for goods and services.
Adan said the IGAD trade policy will provide a mechanism for expanding intra-regional exports of both consumer goods and capital goods through the development of regional value chains.
Adan said that the trade policy will coordinate policies and regulatory trade framework to ensure that measures undertaken across IGAD member states are not contradictory, adding that the policy will also enhance regional integration by assisting its members in the domestication and implementation of the African Continental Free Trade Area (AfCFTA).
Mixed progress in SADC development plan (The Herald)
There has been varying progress in implementing the Regional Indicative Strategic Development Plan (RISDP) during the 2020-2022 period, with more scope to be done. Consultant, Dr Manasa Dzirikure, made this observation when he made an assessment at the start of a regional hybrid dialogue on the implementation of the SADC RISDP 2020-2030, which began in Johannesburg, South Africa on Tuesday. His assessment focused on five result areas in terms of quantifiable execution of activities planned in the health and agricultural sectors, and the cross-cutting issues of climate change and actions supportive of women and youth.
He said progress was exemplified by an 85 percent implementation of planned regional activities by the SADC Secretariat during 2020/2021, against a low budget utilisation rate of 58 percent.
He noted that the SADC Secretariat had implemented the Regional Agricultural Policy (RAP) for improved production, productivity and competitiveness; improved regional and international trade and access to markets of agricultural products; and improved private and public sector engagement and investment in the agricultural value-chains, among others.
Produce high quality goods, local industries urged (Chronicle)
LOCAL industries have been urged to take full advantage of the African Continental Free Trade Area (AfCFTA) and the Common Market for Eastern and Southern Africa (COMESA) agreements that avail a wider market and upgrade their products to be competitive.
Speaking at the inaugural Trade Tariff Conference in Bulawayo on Wednesday, Competition Tariffs Commission (CTC) assistant director Mr Isaac Tausha said the signing of the AfCFTA is an opportunity for the local industries to access a wider market and also access affordable raw material. “There is a need for the players to upgrade product quality and also adjust the cost of doing business so that we produce affordable products that can compete in the international market,” said Mr Tausha.
COMESA Research Forum: Call for comprehensive research on pharmaceuticals (COMESA)
There is need to undertake comprehensive research on pharmaceuticals production and trade flows in the COMESA region to determine trade and competitiveness opportunities in the pharmaceutical industry. This was one of the recommendations from the four-day 9th COMESA Annual Research Forum that closed today in Cairo, Egypt. The forum which attracted eminent scholars, researchers, academics, regional and international experts from the public and private sector, stressed the need to strengthen mobilization of resources to promote science, technology and innovation activities. This is intended to build resilience in line with the theme of the forum: “Enhancing Business Competitiveness and Resilience to Boost Intra-COMESA Trade”.
Eight research papers based on emerging topical issues in economics, trade and regional integration at continental and global level were presented for review.
They included a study on the trade implications of the cross-border data transfer laws/policies in the COMESA region. Conducted by the Mr. Adam Willie from Zimbabwe titled ‘Cross Border Data Exchange under the COMESA Digital Free Trade Area (DFTA): Implications on Intra-Regional Trade’. Another study presented was on the status of digitalization in the COMESA region which investigated the effect of digitalization on Intra-COMESA trade over a period 2011 to 2020.
Mombasa-Kampala is most frequently used route for cargo (Monitor)
The Mombasa- Kampala route is the most frequently used in East Africa, accounting for 734 trips according to a new survey by Trade Mark East Africa. Presenting a paper on regional trade and transport study on September 1 during the sixth high level economic growth forum, Impact and Results Director at TradeMark East Africa, Ms Catherine Nanzigu said the study aimed at analysing traffic flow for commodities along the major trade corridors by different modes of travel in Eastern Africa.
Explaining to the participants the purpose of the Origin Destination (OD) study, Ms Nanzigu said the aim was to sample from the full freight traffic collected under the traffic census to paint an accurate picture of freight flows.
Digital transformation set to supercharge economic growth in East African community (Technext)
Now that Kenya’s Supreme Court has confirmed William Ruto’s victory in the country’s recent, close-run presidential race and the new President has just taken office, the ball can start rolling again on important intra-African trade talks. At the top of the agenda is fully integrating the 90-million-strong Democratic Republic of the Congo (DRC) into the East African Community (EAC), which it joined in late March.
The DRC is the largest country in sub-Saharan Africa and possesses huge mineral wealth, yet its population remains among the world’s poorest. It is therefore hoped that the DRC’s EAC membership will not only establish new trading routes between the East African bloc’s member nations but also unlock opportunities for foreign investment and sustainable development in the DRC and across the region.
To deliver on these ambitions, Kenya and the DRC will need to deepen their already-strong ties. A robust DRC-Kenya partnership could rapidly accelerate the digital revolution, which would supercharge economic growth in both countries and improve the quality of life for their citizens.
Kenya rattled as Britain rejects new EAC tariffs (The Citizen)
UK has demanded that Kenya abide by the provisions of an Economic Partnership Agreement (EPA) signed between the two nations. The new levy affects a tax band of products that also includes iron and steel, edible oils, furniture, leather products, and fresh-cut flowers. The UK has demanded that its exports to Kenya be exempted from the newly raised East African Community (EAC) tax charges that took effect on July 1, posing a big dilemma for Nairobi, which is bound by the regional bloc’s decisions. Trade Principal Secretary Johnson Weru said the UK demands that Kenya abide by the provisions of an Economic Partnership Agreement (EPA) signed between the two nations—a request that, if granted could trigger similar demands from other nations.
In a deal struck on May 5, 2022, by the Partner States of the EAC, the Common External Tariff (CET) for imports entering the bloc has been raised by up to 35 per cent from July 1.The levy is imposed on imported finished products from non-member States in a strategy to stimulate local industry and production. Mr Weru said the UK had sought assurance “that the EAC-CET 2022 will not apply to them on the basis of the standstill provisions of the Kenya-UK EPA, which entered into force prior to the amendment. This presents a challenge to the implementation of the new CET to ongoing trade agreements.”
Maritime experts advocate new tech for cleaner shipping in Africa (Vanguard)
Speaking at the 7th Lagos International Maritime Week, LIMW, held in Lagos, the French Ambassador to Nigeria, Mme Emmanuelle Blatmann, who was represented by Laurence Monmayrant, Consul-General of France in Lagos, said that profound mutations are also taking place in the maritime industry for the better. She explained that, more than the energy crisis, there had been repeated major natural disasters which must trigger the change for the shipping industry as a big energy consumer.
Also speaking, Otunba Kunle Folarin, Chairman, Nigerian Port Consultative Council, said that the immediate concerns that needed to be addressed were issues in the maritime and shipping environment, particularly in Marine Technology and Machinery.
Morocco, Nigeria, ECOWAS Sign Gas Pipeline Agreement (Morocco World News)
Morocco’s National Agency for Mines and Hydrocarbons (ONHYM), Nigeria’s National Petroleum Company Limited (NNPC), and the Economic Community of Western African States (ECOWAS) signed a Memorandum of Understanding (MoU) for the Morocco-Nigeria gas pipeline project in Rabat today. Speaking at the signing ceremony, ONHYM Director General Amina Benkhadra highlighted the Morocco-Nigeria gas pipeline’s potential to boost regional economic integration and reinforce sustainable development in the west African region. “Energy is essential to all economic development, and gas is the backbone of the energy transition,” Benkhadra said, emphasizing Africa’s “significant resource that could be used to accelerate the pace of economic and social development.”
She noted that the Morocco-Nigeria gas pipeline, which seeks to provide energy for over 11 African countries, aims to contribute to the development of key sectors, including food security, infrastructure, mining, renewable energy, and human development.
How Africa Can Escape Chronic Food Insecurity Amid Climate Change (IMF Blog)
Climate change is intensifying food insecurity across sub-Saharan Africa, where Russia’s war in Ukraine and the pandemic are also adding to food shortages and high prices.
Climate events, which destroy crops and disrupt food transport, are disproportionately common in the region. One-third of the world’s droughts occur in sub-Saharan Africa, and Ethiopia and Kenya are enduring one of the worst in at least four decades. Countries such as Chad are also being severely impacted by torrential rains and floods.
The resulting rise in poverty and other human costs are compounded by cascading macroeconomic effects, including slower economic growth. A new IMF policy paper examines how fiscal and financial policies and reforms such as technology transfer can reduce this damage and help countries adapt.
Critical Element of Trade in Safe Agro-Food Commodities in East Africa (Farmers Review Africa)
Increased intra-African trade in agricultural commodities and services can help reduce Africa’s annual food import bill, currently over US$80 billion, by local sourcing of import substitutes while at the same time expanding agricultural exports from a base of about US$60 billion per year.
Representatives drawn from governments, the private sector, civil society, academia, regional bodies and agricultural value chain associations from East Africa met for a three-day training workshop, from 29-31 August 2022, on Food Safety and Coordination on Border Regulations towards improving the safe trade of agro-food commodities in the region.
Gujadhur further stated that food safety is at the heart of FAO’s work, supporting the achievement of Better Production, Better Nutrition, a Better Environment, and a Better Life, leaving no one behind. “Food safety is a shared responsibility. There is no better time than this for the Eastern African region to harness efforts to improve food safety, promote cross-border food trade, and benefit from opportunities arising from the Africa Continental Free Trade Agreement (AfCFTA). Zero hunger will not be achieved without food safety, as if it is not safe, it is not food”.
The overall contribution of intraregional trades to Africa’s exports is far higher than estimates because of “econometric and methodological errors,” U.S. think tank Brookings indicates in a recent working paper. According to the paper, intraregional trade accounts for 22 to 25% of the continent’s overall exports, well above the 16% announced by several studies.
In the working paper titled “The economic significance of intra-African trade: Getting the narrative right,” Brookings notably considered the usually high informal cross-border trades on the continent. “While informal cross-border trade is a global phenomenon, studies tend to concur that it is much more widespread on the African continent than in other regions.
The high prevalence of informal cross-border trade -which is by definition intra-regional since it concerns exclusively goods traded by neighboring countries- is mainly noticeable in small landlocked countries and some subregions of the continent.
Signing of High-Profile Agreements and MoUs Herald Conclusion of ACTIF2022 (Afreximbank)
The three-day AfriCaribbean Trade and Investment Forum 2022 (ACTIF2022) hosted in Bridgetown, Barbados, ended on a high note with the signing of a total of 14 agreements and memorandums of understanding (MoUs) aimed at deepening economic ties between Africa and the Caribbean. The agreements, expected to form the foundation for strengthened bilateral relationships, trade and investment ties,
A Trade and Investment Agreement signed between Afreximbank and the Central Bank of Barbados (CBB) will see the deployment of a $250-million Trade and Investment Finance Promotion Programme aimed at mobilizing trade and investment between Africa and the Caribbean in collaboration with CBB and local banks in Barbados.
Other agreements signed include a US$150-million Revolving Import Finance Facility Agreement between Afreximbank and MRS Oil & Gas for the importation of refined products, exportation of crude oil, as well as crude oil vs refined products swaps, and pre-delivery of petroleum against crude allocations
The Forum also witnessed the signing of an MoU Establishing the Africa Caribbean Business Council. Entered into by Afreximbank, the Africa Business Council and the Caribbean Private Sector Organisation, the MoU is aimed at private sector cooperation and joint action pursuant to the deepening of business, trade, investment and people relations among the private sector and people of CARICOM and the African Union.
Global economy
G-7 trade ministers pledge to boost supply chain resiliency (Kyodo News Plus)
Trade ministers from the Group of Seven advanced economies agreed Thursday to bolster supply chain resiliency for vital products, including critical minerals, amid Russia’s ongoing war in Ukraine. The ministers from Britain, Canada, France, Germany, Italy, Japan and the United States, plus the European Union, said in a statement after their meeting in Germany that recent crises have drawn attention to “systemic vulnerabilities to chronic risks and acute supply chains shocks” that hamper economic growth and security.
“We, the G-7 Trade Ministers, underline that diversifying trade and expanding trading relations on a mutually beneficial basis is key to ensuring well-functioning supply chains and to improving the resilience and sustainability of our economies.”
Japanese Economy, Trade and Industry Minister Yasutoshi Nishimura told reporters after the meeting that strengthening supply chain resiliency needs the involvement of emerging and developing economies, suggesting it will be necessary to expand cooperation beyond the existing G-7 framework.
Meanwhile, the ministers expressed concerns over some trade practices such as intellectual property theft, market-distorting actions of state-owned enterprises, and harmful industrial subsidies, among others.
Least developed countries want fund to cover damage from global warming (Africanews)
Developing countries across the world are demanding that compensation for damage caused by global warming be high on the agenda of the UN World Climate Conference (COP27), a statement from the group said Wednesday in Dakar. At the same time, two senior government officials from Senegal and the Democratic Republic of Congo (DRC) participating in the conference jointly refused to allow their countries to give up future oil and gas exploitation under pressure from industrialised countries in the name of the fight against global warming.
Ministers and experts from the Least Developed Countries (LDC) Group, about 45 mainly African and Asian countries, met this week in the Senegalese capital to adopt a common position for COP27. Another meeting of African ministers is scheduled for Thursday, which US climate envoy John Kerry is expected to attend.
Various speakers stressed the small share of their countries in global greenhouse gas emissions and the disproportionate toll they are paying.
The final declaration of the meeting expresses “the crucial importance of setting up a financing mechanism to deal with loss and damage”.
Kerry Urges Rich-poor Unity On Climate Effort Ahead Of UN Talks (Barron’s)
US climate envoy John Kerry on Thursday urged African countries to help overcome divisions between rich and poor nations at the upcoming UN COP27 talks. Meeting African environment ministers, Kerry acknowledged the historic role of wealthy countries in stoking climate change but said tackling today’s emissions was a global problem.
Kerry pointed to the worsening impact from climate change on Africa. “(The) climate crisis here in Africa is more acute than it is in some other parts of the world,” Kerry said. “This year has seen devastating floods in South Africa, Mozambique and Uganda that just killed hundreds and displaced tens of thousands. “Meanwhile, the Horn of Africa is in its fourth year of drought, with more than 18 million suffering from food insecurity as a consequence.”
On Wednesday, a bloc of the world’s poorest countries said they would urge COP27 to push ahead with another envisioned area of climate finance -- a fund to compensate vulnerable nations for damage such as floods and rising seas. Ministers and experts from the 46-nation Least Developed Countries (LDC) bloc, also meeting in Dakar, said setting up a funding mechanism for the proposed fund was of “crucial importance.”
Nigeria Drops to Africa’s 4th Largest Oil Producer, OPEC Reports (Voice of America)
Nigeria is facing a record reduction in oil production, oil cartel OPEC reports, dropping from the first largest producer in Africa to the fourth, behind Angola, Algeria and Libya. The Organization of Petroleum Exporting Countries monthly oil market report for August showed that Nigeria’s production stood at 980,000 barrels a day, a decline of more than 100,000 barrels per day compared to July.
For decades, Nigeria has been Africa’s largest oil producer. But in recent years, theft and sabotage at production sites have hampered output. Oil was once Nigeria’s biggest earner and contributor to national GDP, but the latest data shows information and communications technology and trade contributed more during the second quarter this year.
Related News
tralac Daily News
Local news
Duty-free African imports put SA coatings sector at risk, claims Sapma (Moneyweb)
South Africa’s coatings sector has warned the government that its future existence will be threatened by allowing African paint, polymers and coatings producers to export products into the country duty-free in terms of the African Continental Free Trade Area (AfCFTA) agreement. SA Paint Manufacturing Association (Sapma) chair Sanjeev Bhatt said on Tuesday the sector was shocked to discover that on a few specific tariff headings these product lines could be imported free of customs duty effective from July this year.
he said it appears that – without any consultation with the SA coatings sector or Sapma – the AfCFTA agreement tariff listings were altered to allow African producers to be exempt from duties when offering their products to the South African market. “Such unfair competition would not only threaten sustaining the quality of coatings sold in South Africa – probably at much lower cost – but virtually shut down the local coatings industry with huge job losses,” said Bhatt
SA’s annual mining output falls for sixth consecutive month in July (Daily Maverick)
Gold production declined almost 20% in the 12 months to July, while output for platinum group metals (PGMs) fell 12.2%. Iron ore production was down more than 20%. It all adds up to a decline of 8.4%, considerably worse than market expectations of a 5% contraction. South Africa’s mining industry has long been in a state of decay and decline, and the data so far this year confirm that trajectory. Still, it has not all been doom and gloom. On a monthly basis, production in the sector rose 2.3% in July. And mineral sales rose 4.3% in the year to July. Coal led the way with sales soaring 84.3% – prices for the fossil fuel have sizzled this year, defying predictions that the commodity is on its way to becoming a fossilised relic of our economic past.
The data come in the wake of a shock deterioration in South Africa’s trade balance, which unexpectedly fell into a deficit of R87-billion in the second quarter (Q2).
“Looking ahead, power outages and ongoing logistical constraints will continue to undermine the mining industry. Moreover, regulatory uncertainty, infrastructure inefficiencies and theft sullies South Africa’s attractiveness for mining exploration investment,” Jee-A van der Linde, an economist at Oxford Economics Africa, wrote in a note about the data.
Take advantage of trade treaties, business urged (Chronicle)
THERE is a need to continuously capacitate local industries on how to capitalise on trade agreements to which Zimbabwe is a signatory so as to position the country to realise full economic benefits from such treaties. Bulawayo Provincial Affairs and Devolution Minister, Judith Ncube, said this yesterday while officiating at the ongoing Trade Tariff Conference hosted by Competition Tariff Commission (CTC) in Bulawayo. Running under the theme: “Unpacking Zimbabwe’s Trade Agreements and Benefits that can Accrue to Local Industry,” the conference seeks to enhance appreciation of trade agreements and how these can benefit local businesses.
She said the ambitious policy can only succeed when the country has a proactive and effective private sector that ensures conversion of envisaged trade benefits into reality. “The continuous capacitation of industry with vital information in trade agreements that Zimbabwe is signatory to, is of paramount importance,” said Minister Ncube. “It aids in positioning the country on an advantageous position as you, our local industry, will be able to strategically position yourselves and utilise the trade agreement platforms availed by Government.
Kenya seeks to boost bilateral ties with EAC states and revamp intra-African trade (Garowe Online)
The newly sworn-in Kenya president Willam Ruto began his first day in office on a high note, hosting Sudan’s President Salva Kiir and Somalia’s President Hassan Sheikh Mohamud at the State House in Nairobi. “With South Sudan, President Salva Kiir discussed various bilateral agreements and areas of cooperation, including security and regional infrastructure development. We are working with South Sudan in enhancing intra-African trade through the strengthening of the East African Community and other regional economic blocs in the continent.” wrote President Ruto on Twitter.
“We will fast track the implementation of the Joint Commission for Cooperation between Kenya and Somalia. This will boost trade in Miraa and fish and ease movement between our two nations.”
Top 10 foreign policy priorities for Kenya’s new President William Ruto (The East African)
The overwhelming congratulatory messages to Kenya’s new government from leaders of other countries in Africa and globally shows clearly the world’s eagerness to deepen engagements with President William Ruto. But the incoming government should be aware of the enduring maxim of international relations theory that “states pursue their self-interest”, diplomatically referred to as state centrism.
Noting that foreign policy plays a critical role in pursuing national priorities, the following are some of the main foreign policy issues that should take precedence for the Ruto government.
Diplomacy of economic prosperity: The government should deliberately seek to deepen its engagements with states that offer opportunities for economic development and prosperity. There should be a shift from the foreign policy of prestige and politics to one of economic growth. It should look for new partnerships while enhancing existing markets and economic opportunities in the expanded East African Community (EAC).
The new government should support and fast-track the recently launched ‘Kenya AfCFTA National Implementation Strategy’ that seeks to deepen Africa’s trade integration. The aim is to enhance and exploit economic opportunities inherent in intra-Africa trade. The government should seek Foreign Direct Investments (FDIs) that are hustler-based. This means business operations that are labour-intensive or provide employment and entrepreneurial opportunities for the unemployed youth.
SGR revenues grow 7.8pc to Sh7.1 billion (Business Daily)
Cargo and passenger revenues from the Standard Gauge Railway (SGR) rose 7.8 percent to Sh7.1 billion in the six months to June, extending recovery from the global Covid-19 disruptions. The latest data from the Kenya National Bureau of Statistics (KNBS) shows that the passenger train crossed the Sh1 billion mark in a half year period for the first time since the train was launched, boosting efforts for the project to break even.
The cargo service, which mainly subsidises the passenger line, marginally grew to Sh6.17 billion in the six months from Sh6.04 billion in similar period last year. This comes even as the modern rail prepares to take a hit coming from increased competition from the road transporters following President William Ruto’s order to revert port operations to Mombasa.
Tailors, dressmakers to take advantage of AfCFTA (BusinessGhana)
The Bono East Regional Minister, Kwasi Adu-Gyan, has urged tailors and dressmakers to be creative and competitive in their fashion designs and styles to be able to penetrate the African Continental Free Trade Area (AfCFTA). He said this on Saturday at the First Annual Bono East Regional Conference of the Ghana National Tailors and Dressmakers Association (GNTDA), at Nkoranza on the theme, “clothing Africa beyond, the role of Bono East tailors and dressmakers.”
Mr Adu-Gyan charged the leadership of the GNTDA to organise their members into cooperatives and groups, in order to equip them to take advantage of the numerous opportunities AfCFTA offered. The Regional Minister added that the focus of the association was in tune with the government’s effort to make Ghana self-sufficient and net exporter of commodities, that the country had competitive advantage in.
Nigerian minister says plan to commercialise gas flaring at advanced stage (Reuters)
Nigeria’s plan to commercialise gas burned from its oil fields was at an advanced stage and would help cut 15 million tonnes of carbon emissions from the atmosphere, the petroleum minister said on Tuesday after meeting U.S. climate envoy John Kerry. Africa’s biggest economy, Nigeria is also the continent’s major oil producer. The West African nation has been trying to harness gas belching from its oil fields so it can be exported or used to generate power but has been hobbled by lack of finance.
Kerry said Nigeria’s decisions on curbing gas emissions will impact how other African nations proceed with their own plans. Nigeria has previously said it could be losing $1 billion in revenue annually due to flaring, which also adds to extreme environmental pollution in the oil-producing Niger Delta region.
FG strengthens border control to tackle insecurity, illegal migration (Peoples Gazette)
The federal government has reiterated its commitment to tackling insecurity occasioned by irregular migration and increasing transnational activities across Nigeria’s international borders. A spokesperson for the Ministry of Interior, Afonja Ajibola, said this in a statement on Wednesday in Abuja.
Mr Belgore said the ministry, through the Nigerian Immigration Service (NIS), has evolved new ways to improve border control, management, monitoring and protection. The permanent secretary added that such innovations would help confront 21st century evolving challenges that continued to threaten Nigeria’s internal security.
“The importance of border security cannot be overemphasised in view of the rate and significance of transnational crimes. Indeed, this is of global significance due to globalisation and increasing travel. “Accordingly, there has been an increase in transnational crimes from irregular migration to trafficking in persons, smuggling of migrants, financial crimes, drug-related offences and transportation of illegal weapons, among others.”
Ethiopia: Ministry unveils new factory prices for cement products (Addis Standard)
The Ethiopian Ministry of Trade and Regional Integration has announced today that it has issued a new cement price regulation to curb the rising price of cement products in the country. The ministry said it has made the decision after it asked cement factories in Ethiopia to make price adjustments to tackle the increasing cost of cement products. However, the prices forwarded by cement factories was too high, promoting the ministry to establish a task force to study production process and come up with price suggestions.
Gebremeskel Chala, the Minister of Trade and Regional Integration, said that due to the lack of cement production, priority is being given to government projects.
Liberia 2022 Article IV Consultation (IMF)
Liberia is a fragile, low-income country. Per-capita income remains about a third of the level prior to the civil wars during 1989-2003. After a bout of economic instability, prudent monetary and fiscal policies reduced inflation to just over 5 percent in 2021 and budgets are financed without recourse to central bank credit. Economic growth suffered first from macroeconomic instability and then from the COVID-19 pandemic. Growth rebounded to 5 percent in 2021 and, after a soft patch this year due to Russia’s war in Ukraine, should reach 5-6 percent in the medium term if Liberia taps its clear potential through persistent structural reforms and prudent policies. The government’s resolve will be tested in the runup to the general elections in September 2023.
African trade and integration
‘Trade protocols and free movement of people, goods remain a challenge’ (Gambia News)
Dr. Taal made this disclosure on 8th September 2022 during a two-day stakeholder forum aimed at improving free movement of goods across the region.
However, Dr. Taal said West African Region is ahead of other sub-regions in terms of the free movement of people, goods and services. “Most of the challenges encountered are costs incurred by traders, the amount of time spent at borders to get clearance, and external tariffs under ECOWAS customs regulations among others,” Dr. Taal pointed out. ”We are not satisfied for the time being. We want what is what is in the Gambia to be in other African countries. “ he said.
Dry Ports: MOWCA to Facilitate Transit Trade Deal Between Chad, Nigeria (This Day)
Secretary General Maritime Organisation of West and Central Africa (MOWCA), Dr Paul Adalikwu has promised to facilitate seamless transit cargo movements from Nigeria’s dry ports to the Republic of Chad.
He also promised to make arrangement for officials of Chad government to visit the proximate dry ports in northern Nigeria as a way of preparing grounds for the promotion of intra African trade in line with the focus of African Continental Free Trade Area (AFCTA).
Chadian Minister of Transportation, Fatima Goukouni Weddeye described the upcoming Regional Maritime Development Bank as a laudable initiative of MOWCA adding that it will fill the gap of sustainable funding of transport activities that are the backbone of foreign trade. The minister said upon study of the bank’s charter by her ministry’s technical team, an informed decision will be taken on the country’s endorsement of the bank.
Africa looks to aid youth, women in economy (China Daily)
As a trade conference focusing on women and youth drew to a close in Tanzania on Wednesday, African leaders have discussed recommendations to enhance the roles of women and youth in Africa’s economic integration agenda. Among the topics discussed during the African Continental Free Trade Area Conference on Women and Youth in Trade held in Dar es Salaam are the removal of all nontariff barriers, massive investment in human resources and easy access to loans to help increase participation of youth and women in intra-Africa trade.
Speaking at the opening of the conference on Monday, Tanzania’s President Samia Suluhu Hassan said the creation of one African market will require eliminating unnecessary trade barriers.
Africa must remove barriers to cross-border trade to target food insecurity, warns IFPRI (African Business)
African countries must improve their transnational transport infrastructure or risk remaining vulnerable to shocks in global food supply chains, warned experts at the International Food Policy Research Institute (IFPRI) following the release of the US Department of Agriculture’s (USDA) monthly World Agricultural Supply and Demand Estimates.
Africa’s food security has been subject to intense scrutiny in the six months since Russia’s invasion of Ukraine began. While the direct impact of shortages, caused by the closure of Ukraine’s Black Sea ports, has been mitigated by substituting its grain for imports from other large southern hemisphere producers including Argentina, Brazil, Australia and India, the indirect effects of disruptions to agricultural supply chains have been far reaching.
“The greatest problem facing African farmers is not that they are too connected to global supply chains, but that their connections to those supply chains are not developed enough”, said IFPRI senior research fellow David Laborde at a press briefing on 13 September.
Global increases in grain prices have not been passed onto farmers in sub-Saharan Africa, who predominantly sell their output to domestic or regional markets.
Spurring intra-Africa remittances (Business Daily)
When we talk about diaspora remittance in Africa, often the first line of thought is persons residing outside the continent, especially in North America and Europe, sending money back to their homeland. But the most overlooked factor is the intra-continent immigrants; that is, persons who are economically active not in their country of birth, but in another country within the continent. Data from the United Nations shows that in 2019, over 21 million Africans were living in another African country, a significant increase from 2015, when around 18.5 million Africans were estimated to be living within the region.
Migration corridors represent an accumulation of migratory movements over time and provide a snapshot of how migration patterns have evolved into significant foreign-born populations in specific destination countries.
The World Bank estimates that intra-African remittances could be around $14 billion a year. Within Sub-Saharan Africa, South Africa, Côte d’Ivoire, Sudan and Uganda were the top remittance senders in the region, sending out a total $2.5 billion in 2019.This makes migration corridors involving Côte d’Ivoire, Uganda, South Africa and Sudan as the remittance hotspots. In terms of remittance channels, the dominant mode of transfers across the region are commercial banks and money transfer organisations (MTOs). The use of pure digital platforms is picking up as remittance channel providers partner up to offer seamless transfer of funds directly from a sender to a recipient at the comfort of their devices.
Africa-Europe must deepen ties – EU Vice President (BusinessGhana)
“Africa and Europe should continue to prepare the future instead of falling back into the past,” Mr Borrell said in an op-ed he authored ahead of his visit to Mozambique and Kenya. Describing Africa as a vibrant continent preparing its future, Mr Borrell said the continent had grown to become the EU’s most reliable partner. He said a quarter of African trade was with the EU, adding that African exports entered the EU duty-free.
“The EU works with African partners on building the continent’s first manufacturing sites for vaccines and we approved at the AU-EU summit a Global Gateway €150 billion investment package. With the European Peace Facility and our training missions, we help strengthen peace and security,” he said.
The future of EU, Africa trade ties (Business Daily)
Global economy
WTO, OECD to redouble collaborative efforts in addressing challenges of the global commons (WTO)
In her remarks to the Ambassadors, DDG Ellard stressed that international cooperation can work even in the face of a fractious geopolitical climate, as evidenced by the successful WTO 12th Ministerial Conference (MC12) in June this year. The outcome of MC12 “defied expectations”, she said. “Our members worked very hard and were able to deliver many significant outcomes.” DDG Ellard emphasized the importance of MC12’s “Geneva Package”, which includes the Agreement on Fisheries Subsidies as well as decisions on the COVID-19 pandemic response, food insecurity, the e-commerce work programme and moratorium, and WTO reform. She also stressed the need for the international community to work hard so that these agreements have a real impact on people’s lives across the world. “We cannot rest on our laurels. There is a lot of work to do, and the challenges keep changing every day,” she said.
World leaders to be presented worsening global food insecurity report at UN General Assembly (Farmers Review Africa)
World leaders gathered for the 77th Session of the United Nations General Assembly in New York, the US will be presented with a report that analyses the worsening global food insecurity and malnutrition and the challenges faced by the global community.
Ahead of the UN event, the Food Security Information Network (FSIN) drafted a mid-year update of the 2022 Global Report on Food Crises. “By mid-2022, the population facing the three highest phases of acute food insecurity was greater than at any point in the six-year history of the Global Report on Food Crises (GRFC),” FSIN says in its report.
“Our spotlight on global and domestic food prices (see page 14) shows how the cost of food has been rising steadily since the onset of the Covid-19 pandemic. International food commodity prices were at a ten-year high before the economic shocks of the war in Ukraine. ‘‘Although prices in international markets for staple foods, such as wheat, maize and vegetable oils have returned to pre-invasion levels, consumer food prices remain high and therefore purchasing power is not expected to improve significantly,” FSIN added.
Investment in tech will cut impact of shipping on climate change - Experts (Businessday)
Maritime experts have called for investment in new technologies and modern ships to reduce the impact of shipping and maritime-related activities on climate change in Africa. According to them, African maritime administrations must put regulations in place to drive investment in new technologies and encourage the acquisition of modern ships for greener shipping. Speaking on “new technologies for greener shipping in Africa,” at the 7th International Maritime Business to Business Conference and Exhibition 2022, Tuesday in Lagos, Kunle Folarin, chairman of the Port Consultative Council, observed that the majority of vessels flying African flags were old as they fall within the age of 15 and 25 years.
According to him, this makes ships flying African flags less environmentally-friendly in terms of emissions when compared to vessels registered and flying the flags of most developed nations.
In her address, Oritsematosan Edodo Emore, chairman of Zoe Maritime Resources Ltd, said that the maritime policies of African countries must undergo a paradigm shift from dwelling on individual modes of transport and development in silos to a new strategy that embraces an integrated transport system that takes technology into account.
According to her, African countries must develop their ports, which are a significant part of shipping infrastructure that stimulate trade and generate revenue for the government, and jobs for the populace, to become efficient.
Poorest nations to push on compensation at climate talks (Digital Journal)
The world’s poorest countries say they will insist that the UN’s upcoming climate talks push ahead with proposals for a fund to compensate vulnerable nations for climate-inflicted damage. Ministers and experts from the 46-nation Least Developed Countries (LDC) bloc, meeting in Dakar, said their countries were most exposed to climate impact but least to blame for the carbon emissions that cause it. In a statement issued late Wednesday ahead of the November climate talks, they said that setting up a funding mechanism for loss and damage was of “crucial importance.” They also reiterated a call for “all parties, particularly major emitters” to make swift and deep cuts in carbon emissions, and for rich economies to honour past pledges on climate aid.
The LDC bloc, gathering countries mainly from Africa and Asia, is campaigning in particular for compensation for vulnerable countries which suffer from climate-related damage such as floods and rising seas. It wants the upcoming talks to establish a mechanism to provide funding.
Automation of Ports – Global Supply Chains (Data Science Central)
Ports and ships are the most important node, which altogether comprises the global supply chain’s intricate and complex nexus. About 90 percent of the good travels by ship. Almost 60 percent of global oil trade is carried via sea, while the commodity constitutes 30 percent of all maritime cargo
International trade grew to a record $28.5 trillion in 2021, according to an estimate by UNCTAD – a 25 percent increase from 2020. Recently, Covid-19 Stop-and-Go maneuvers have highlighted the difficulties that modern ports face. It includes handling an overwhelming amount of goods, their corresponding paperwork, and other administrative tasks, congestion, delays, no coordination between terminal operators, and most importantly, the dependency on manpower. In addition to these, environmental issues have taken the front seat. However, technology promises, if not completely resolved, at least to help provide the most optimal solutions to these pressing problems.
Prospects in cross-border e-commerce (Manila Bulletin)
The global cross-border e-commerce market was valued at $578.57 billion in 2019 and is expected to reach $2.248 billion by 2026, expanding at a CAGR (compounded annual growth rate) of 17.4 percent, based on the data from alltheresearch.com.
This significant uptick in consumer e-commerce activity fueled by the COVID-19 pandemic was sustained in 2021, further to the UNCTAD report, with online sales increasing markedly in value, despite the easing of restrictions in many countries.
Southeast Asia is a hotbed for cross-border ecommerce. It is estimated that by 2023, the region’s cross-border ecommerce gross merchandise value will reach $12 billion, accounting for more than 40% of the total regional E-commerce market.
Based on the Cross-Border E-commerce Awareness and Perception Report by Amazon in 2021, local MSMEs cited the three critical barriers when selling globally. First is the difficultly in managing cross-border supply chains and logistics. Second is the high operating costs in selling overseas via ecommerce. Third is the intense competition from international sellers
G20 GDP Growth - Second quarter of 2022, OECD (OECD)
Gross domestic product (GDP) in the G20 area fell 0.4% quarter-on-quarter in the second quarter of 2022 after rising 0.5% in the first quarter, according to provisional estimates (Figure 1). The contraction in the G20 area contrasts with GDP growth of 0.4% in the OECD area1 in the second quarter of 2022.
The slowdown in the G20 area in Q2 2022 mainly reflected the sharp contraction in China,2 where GDP fell by 2.6% quarter-on-quarter after rising by 1.4% in Q1 2022. This contraction reflected the lockdowns that were put in place to contain COVID-19 outbreaks. GDP also contracted in India (by 1.4%), in South Africa (by 0.7%) and in the United Kingdom and the United States (by 0.1% in both countries). In India, the main reasons for the slowdown were decreases in government spending and net trade (exports minus imports). In South Africa, the economic recovery of the two previous quarters was undermined by severe flooding in a key manufacturing province. Growth also slowed but remained positive in Saudi Arabia (2.2%), Indonesia (1.0%), Mexico (0.9%) and Germany (0.1%).
Tunisia among 25% of emerging countries having hard time paying their debt (IMF) (African Manager)
A quarter of emerging countries are having a hard time paying their debts, according to the International Monetary Fund (IMF). The global economic situation exacerbated by the effects of the war that Russia is waging in Ukraine, the health crisis and a strong dollar, affect 60% of low-income countries facing debt problems. Tunisia is among those markets that are struggling to repay their debts, like Sri Lanka, Pakistan and Argentina.
How Can We Foster the Production of Pharmaceutical Products in Developing Countries? (Devdiscourse)
The residents of developing countries need pharmaceutical products at least as much as the residents of developed countries. Many new drugs imported by developed countries for non-communicable diseases, cardiovascular diseases, and communicable diseases are patent protected and are not allowed to be made anywhere else without permission, which makes the availability of important drugs difficult in developing countries. Using a sound framework to support local production of pharmaceutical products could go a long way in saving many lives and catalyzing economic development, and capturing more fully the benefits of liberalized trade and regional integration. in developing countries.
Related News
tralac Daily News
Local news
Hard times for SGR as port operations return to Coast (Business Daily)
President William Ruto has returned all port operations transferred to Nairobi and Naivasha Inland Container Depots (ICDS) to Mombasa, reversing one of the most controversial policies of the Jubilee administration. To ensure that the Standard Gauge Railway (SGR) has minimum guaranteed business to repay the Sh450 billion debt taken to build it, the Uhuru Kenyatta administration forced traders to use the modern railway line, a policy that saw the government transfer clearance to enforce compliance. Speaking on Tuesday during his inauguration, Dr Ruto said the move is aimed at restoring thousands of jobs that had been lost in Mombasa.
Former President Uhuru Kenyatta in 2019 launched the extended SGR freight services from Mombasa to the Naivasha ICD, promising faster transportation of cargo to western Kenya and on to neighbouring countries. He also put in place various policies to protect the SGR but ended up hurting transporters who lost thousands of jobs at the Kenyan coast.
What Kenya seeks to unlock in UAE pact (Business Daily)
A new trade deal being negotiated with the United Arab Emirates (UAE) is expected to open the giant market to Kenya’s coconuts and potatoes among other agricultural products to boost non-oil trade between the two countries. The two countries in July launched talks on United Arab Emirates-Kenya Comprehensive Economic Partnership Agreement (UAEK-CEPA) to increase the volume of trade in goods and services and investment. The trade pact was an initiative of former President Uhuru Kenya and the private sector is hoping the new government will stay on it.
“This is the latest agreement we have and we hope will continue with it under President William Ruto. It is ready for negotiation and have paused it for the transition and Emiratis are eagerly waiting for us to go back to the table,” said Johnson Weru, the Trade and Enterprise principal secretary, in a briefing with the private sector.
He said this will be a big test for Nairobi because this is the first time the country will be negotiating directly with the Middle East.
Boosting Demand for Nigeria’s Exports Through Value Addition (This Day)
No doubt, Nigeria’s foreign trade may appear huge in terms of volume, and size but it is not often favourable to the country, especially in terms of the balance of payment in recent times. This is partly a result of the underlying challenges in the country’s economic structure, especially its over-reliance on crude oil revenues over time and the inability to properly diversify the economic base. Nigeria’s foreign trade is perpetually in deficit as the value of its imports appear to outweigh exports – but the real issue remains in the continuous export of raw materials without value addition.
The National Bureau of Statistics (NBS) in its second quarter 2022 foreign trade report, indicated that Nigeria’s total merchandise trade dropped slightly by 1.23 per cent to N12.84 trillion in the second quarter of the year (Q2 2022) compared to N13 trillion in the preceding quarter.
Double-digit growth in Nigeria e-payment trade (Caj News Africa)
THE growing penetration of mobile telephony, particularly the rapid growth of 4G broadband networks, is inspiring the significant growth of electronic payments in Nigeria. Recent data from the Nigeria Inter-Bank Settlement System (NIBBS) indicates the total value of electronic transactions recorded under the NIBSS Instant Payments (NIP) increased by 13 percent month-on-month and 50 percent year-on-year N33,2 trillion (US$79,1 billion) in August this year. On a cumulative basis, the value of transactions processed through NIP between January and August increased by 42 percent yearly to N238,7 trillion.
CECPA fosters trade ties between India, Mauritius (ThePrint)
The Comprehensive Economic Cooperation and Partnership Agreement (CECPA) offers new opportunities for trade, investments, and services activities between Mauritius and India and can accelerate our economic growth, said Mauritius Prime Minister Pravind Kumar Jugnauth on Tuesday. “The CECPA will act as a support to Mauritius in the wake of ongoing global challenges, Jugnauth said, adding that, “India has been a partner and a friend like no other to Mauritius.” as he launched the CECPA forum in Pointe aux Piments, Le Matinal reported.
“The CECPA forms part of a broader strategy between the Governments to broaden our economic horizons and plays an integral part in facilitating cross-border trade and investment,” he stated.
African trade and integration
Samia: Non-tariff barriers bad for trade across Africa (The Citizen)
African leaders yesterday came up with recommendations on how to enhance the role of women and youth in Africa’s economic integration agenda. The recommendations -- highlighted during the African Continental Free trade Area (AfCFTA) Conference on Women and Youth in Trade in Dar es Salaam yesterday – include removing all non-tariff barriers (NTBs), investing massively in human resources and enhancing easy access to loans.
President Samia Suluhu Hassan, who graced the event, said achieving the stated goal of the AfCFTA ‘to create one African market’, will require eliminating unnecessary trade barriers.
“We need to remove NTBs, including in infrastructure development, if we are to boost intra-Africa trade,” argued President Hassan. “We have been talking about regional infrastructure for so long, but without walking the talk. If we do, we will make a very big step.”
Former President of Malawi Joyce Banda called for political will among African countries when it comes to creating an enabling business environment for youth and women.
Uganda Vice President Jessica Alupo called for good laws and policies that will create a conducive business environment for youth and women in the continent. African countries, she recommended, should create an environment that will enable youth and women to sell finished goods. “We need to cultivate a culture of exporting what we produce and importing what we cannot produce,” suggested Dr Banda.
AfCFTA to supervise first trading activity (The Business & Financial Times)
Without any unexpected hitches, the Ghana National Coordinating Office (NCO) of the African Continental Free Trade Area (AfCFTA) will from October this year pilot a guided trading activity with six countries within the bloc, under supervision of the AfCFTA secretariat, Coordinator of the NCO, Dr. Fareed Arthur, has confirmed.
This pilot trade, according to Dr. Arthur, is expected to test documentation and processes of the AfCFTA and open the gate for other countries to start trading in earnest.
“Ghana will pilot a commercially meaningful trade from next month with Kenya, Mauritius, Tanzania, Rwanda, Cameroon and Egypt for the first time, using the AfCFTA documentation. This will help answer the question that has been on the minds of many people: when are we going to start trading?” he stated.
Tea, coffee, dairy bag long cushion in EAC-AfCFTA trade plan (The East African)
Most of the products traded across African borders will not be attracting any taxes by 2029 or will be slapped with as little as a one percent tax. But products including meat, cut flowers, tea, coffee, and dairy will continue to attract 3.5 percent in tax up to 2029. Food products including tomatoes, onions, cabbages, potatoes, beans, vegetables, and wheat will also enjoy protection with their taxes projected to remain at 3.5 percent by 2029, the EAC tariff concessions plan shows.
GDP to sink in Ghana, South Africa and Nigeria without climate action, says report (African Business)
If global temperatures continue to rise, and governments fail to meet their policy pledges, natural disasters will accelerate in Africa, hampering most countries’ economic growth, says Understanding Africa’s Climate Risks, a recent study by Oxford Economics Africa. Under the report’s “No Further Action scenario” in which no climate adaptation or mitigation policies are implemented countries with annual temperatures above 15°C will experience an exponential deterioration in productivity growth.
“As the academic research on climate change is constantly evolving, our estimates may be underestimating the real economic impact of rising temperatures on those countries’ economies,” says Felicity Hannon, associate director at Oxford Economics Africa.
Africa losing up to 15% of GDP growth to climate change, African Development Bank says (Reuters)
Africa is losing 5% to 15% of its per capita economic growth due the effects of climate change and is facing a gaping climate finance shortfall, according to the African Development Bank (AfDB).Africa has been hit disproportionately hard by the fallout from climate change, which has aggravated droughts, flooding and cyclones across the continent in recent years. African nations received around $18.3 billion in climate finance between 2016 and 2019, Kevin Urama, the AfDB’s acting chief economist, said in a statement released on Tuesday. But they are staring down a nearly $1.3 trillion climate finance gap for the 2020 to 2030 period.
The African Development Bank and the UN Capital Development Fund (UNCDF) featured two innovative mechanisms for scaling up adaptation action and finance during a joint event held on 1 September 2022 on the side lines of the Africa Climate Week in Libreville, Gabon.
The moderator, Gareth Phillips, African Development Bank Manager for Climate and Environment Finance, noted that the current adaptation finance levels are insufficient to meet the needs of developing countries. However, the private sector and local governments can play a crucial role in filling this gap, he said. He said the African Development Bank and UNCDF could also help to: address the lack of credible adaptation metrics and indicators by developing and using methodological tools; create incentives to attract a broad range of actors to engage in adaptation; and unlock new financial streams.
Trade with Africa exceeds $520m in 4 Months (Tehran Times)
Iran traded 890,287 tons of non-oil commodities worth $526.35 million with African countries during the first four months of the current Iranian calendar year (March 21-July 22), data released by the Islamic Republic of Iran Customs Administration (IRICA) showed. As Mehr News Agency reported, South Africa with 255,471 tons worth $152.94 million, Nigeria with 129,437 tons worth $80.63 million, and Mozambique with 82,462 tons worth $57.195 million were Iran’s main African trade partners during the said period. Iran exported 864,027 tons of goods worth $495.51 million to the African continent during the mentioned four months.
Iran’s main export destinations in Africa were South Africa with 255,101 tons worth $149.57 million, Nigeria with 129,437 tons worth $80.63 million, and Mozambique with 82,462 tons worth $57.2 million. Iran has been seeking to expand trade ties with Africa over the past few years.
Global economy
G20 concludes with stronger recovery roadmap (The Jakarta Post)
Held in Belitung from Sept. 7-9, the G20 Development Ministerial Meeting concluded with two deliverables, namely the G20 Roadmap for Stronger Recovery and Resilience in Developing Countries, including LDCs (Least Developed Countries) and SIDS (Small Island Developing States) and the G20 Principles to Scale-up Blended Finance in Developing Countries, including LDCs and SIDS.
“Our meeting reflects the commitments of all members to deliver the shared objectives, that is to narrow the development gap and reduce poverty”, said Indonesia’s National Development Planning Agency head/ National Development Planning Minister Suharso Monoarfa in Belitung.
The meeting successfully concluded the work of the G20 Development Working Group over the past year. The roadmap first locates collective actions to accelerate the economic recovery of developing countries, through improving the productivity and competitiveness of micro, small and medium enterprises (MSMEs), optimizing adaptive social protection, the implementation of green economy and blue economy through low-carbon development and climate-resilient development.
Related News
tralac Daily News
Local news
South African renewable energy projects reach R4bn financial close (Moneyweb)
Renewable energy solutions company African Rainbow Energy and solar technology and engineering firm Sola have reached financial close on two registered 100 megawatt (MW) energy projects. This comes after the power purchase agreements (PPAs) for the projects were signed in March. “The projects needed to raise a total of R4 billion of funding for construction and development,” notes a statement issued on Monday. “In order for this to happen, Sola reached [an] agreement with funding partner and shareholder African Rainbow Energy.”
The statement, which indicates that the deal marks the largest corporate renewable energy PPA in Africa, says the energy projects will fulfil the obligations of a bilateral electricity sales agreement between Sola Group and titanium dioxide producer Tronox Mineral Sands.
Namibia and Botswana remove a barrier to freedom of movement, abolish the use of passports (The Exchange)
One of the main initiatives of the African Union’s Agenda 2063, which aims to remove barriers to Africans’ freedom of movement, employment, and residence on their continent, is the free mobility of Africans within it. With the intention of encouraging the Member States to issue visas to improve the free movement of African nationals on the continent, the project tries to change Africa’s laws, which remain largely restrictive on the movement of people despite political vows to remove borders. Nationals of Namibia and Botswana will no longer require passports to travel between the two nations. The neighbouring nations of Botswana and Namibia have cordial relations and collaborate on economic growth. Last year, Namibia and Botswana agreed to upgrade their cooperation from bilateral frameworks such as the Joint Permanent Commission of Cooperation (JPCC) and the Joint Permanent Commission on Defence and Security (JPCDS).
Once fully embraced by all Member States, the free movement of people within Africa is expected to have many important positive effects, including an increase in intra-African trade, commerce, and tourism; easier labour mobility; knowledge and skill sharing within Africa; the promotion of pan-African identity, social integration, and tourism; an improvement in trans-border infrastructure and shared development; the encouragement of an all-encompassing approach to border management; and the promotion of the rule of law, human rights, and shared development
Kenya’s current account deficit narrows to 5.1pc (Business Daily)
Kenya’s current account deficit narrowed to 5.1 percent in the 12 months to July from 5.3 percent in May, helped by lower oil import costs coupled with improved inflows from tourism and diaspora remittances. The deficit has tended upwards in recent months due to an elevated import bill — due to high crude and food grain prices —but the fall in the price of Murban Crude from $118 per barrel at the beginning of July to $105 at the end of the month helped ease the pressure on the country’s forex. Central Bank of Kenya (CBK) data also shows that diaspora remittances so far this year are 13 percent higher compared to last year, boosting the current account.
“The narrower deficit reflects improved receipts from service exports and remittances,” said the CBK in its weekly markets bulletin.
Imports have outpaced exports in terms of growth this year, largely due to a release of pent-up demand that had built up when the country imposed restrictions in 2020 and 2021 to control the spread of the Covid-19 virus. Kenya’s trade deficit for the first six months of the year widened by nearly a quarter, hitting Sh814.02 billion from Sh620.82 billion in the corresponding period in 2021.
Kenya angles for Sh120b trade pie with Caribbean nations (The Standard)
Over a dozen Caribbean Islands nations led by Barbados are now banking on expected trade and investment pacts with Kenya and other East African Community (EAC) countries to grow trade between the two regions. The pacts have the potential to generate trade volumes estimated at over Sh120 billion.
A Kenyan delegation led by outgoing Industrialisation Cabinet Secretary Betty Maina recently attended the first-ever Africa-Caribbean Trade Investment Forum in Barbados where areas of cooperation were discussed.
Low-hanging opportunities for Kenyan firms, the Kenyan delegation heard, are in the traditional stronghold of tourism but also upcoming sectors such as manufacturing, financial services and maritime.
Declining Non-oil Exports Raising Economic Concerns (Leadership)
The latest Foreign Trade Statistics report as released by the National Bureau of Statistics(NBS) show that the country’s exports in the second quarter of 2022 grew by 4.31 and 47.55 per cents over the figure recorded in the first quarter of the year and the corresponding quarter of 2021 respectively. This, alongside a decline in the import value saw the country recording a trade surplus of N2 trillion in the second quarter compared to N1.2 trillion recorded in the first quarter and the highest in the last 16 quarters. In the second quarter of 2022, total trade stood at N12.84 trillion, lower than N13 trillion recorded in the first quarter of 2022 but higher than N9.71 trillion recorded in the corresponding period of 2021. Total Exports were N7.4 trillion of which Re-exports stood at N9.63 billion, while total imports stood at N5.43trillion.
The trade surplus was supported by the twin effect of the expansion in export earnings which was up 4.3 per cent and the decline in import bills which declined by 7.9 per cent quarter on quarter. Crude oil exports had the biggest chunk of the export figure with N5.91 trillion.
Gas output: ‘Pipeline sabotage, insecurity undermining Nigeria’s output, export’ (The Guardian Nigeria)
While many oil and gas producing countries are maximizing the present global crisis to improve output and revenue, rising pipeline sabotage and insecurity in the Niger Delta have continued to hamper the growth outlook for Nigeria’s oil and gas export. With the country’s gas export at only 60 per cent of its capacity, operators and regulators are concerned about continued shut wells, in protest against theft and sabotage.
In a chat with The Guardian, Chief Executive Officer, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, noted that under-production of crude oil was equally affecting gas production, considering that most of the country’s gas is associated gas.
Komolafe said: “We are yet to take advantage of the global crisis. This is basically in terms of our depressed production because in a way when you have depressed oil production, you will equally have a depressed gas production especially as we are talking in terms of associated gas as against the non-associated gas.
African Development Bank’s support to propel Cabo Verde’s efforts to become regional ICT hub (AfDB)
Cabo Verde is on course to becoming a regional ICT hub, thanks to the country’s investment in a digital transformation vision, with active support from the African Development Bank. The first phase of construction of the Cabo Verde Technology Park’s main buildings, which is funded by the African Development Bank, is 85% complete and will be ready before year-end, officials said on Thursday, 08 September 2022. The project will enable the West African country to diversify away from an economy dependent on tourism to one driven increasingly by innovation.
African trade and integration
Stateswomen urge new deal for Africa’s women, youths (IPPMedia)
Various states women from African countries issued this appeal before a stakeholders’ meeting at the ongoing African Continental Free Trade Area (AfCFTA) in Dar es Salaam, to discuss women’s opportunities in AfCFTA. They said that laws and policies need to focus on equality between men and special groups including women and young people as investment in these groups, when businesses integrate them; this is an important factor for Africa’s sustainable development.
Dr Joyce Banda, the former Malawian president, said political will among African leaders is an essential factor in bringing development to women alongside men as part of society in general. What is important is for African countries to build strong economies enabling women to overcome poverty, she stated. “We must open opportunities that will empower women and young people so that they are not humiliated and harassed,” she said, pointing out that Africa’s young men who die in the Mediterranean Sea and daughters who are abused in the Middle East are insulting illustrations of the poverty in Africa. “It is now time to empower women and youth to participate in the development process by having policies and opportunities that will remove them from poverty. If women are not fully involved in the development process, Africa cannot develop,” she said.
Vice President Howard-Taylor Addresses AfCFTA Conference; Calls for the Creation of Separate AfCFTA for Gender Issues (Front Page Africa)
Vice President Jewel Howard-Taylor has addressed the African Continental Free Trade Agreement (AfCFTA) conference on women and youth scheduled for September 12th to 14th, 2022 in Dar Es Salaam, the United Republic of Tanzania. Speaking at the conference’s opening session, Madam Vice President called for the creation of the AfCFTA Secretariat for Gender Mainstreaming of women and youth, which will focus on the formulation of specific policies to enhance the empowerment of women and youth. Madam Vice President, according to a dispatch, emphasized the compelling need for a hands-on approach and collaboration necessary to ensure the actualization and subsequent transformation of the lives of the largest segment of Africa’s population, the women and youth.
The Liberian Vice President then commended the visionary decision of African leaders to collaborate and diversify economic acceleration through the intra- Africa trade.
Vice President Howard-Taylor further intimated that the provision of affordable and accessible credit to women and youth, the removal of general stereotypes to engender micro-credit facilities, and the free movement of goods and persons across Africa are amongst the most critical issues required in drawing up the final resolution for the implementation of AfCFTA as it relates to women and youth.
Communiqué of the International Cooperation Forum and Meeting of African Ministers (UNECA)
Enhancing sustainable regional value chains for food security
Enhance synergies to unlock green and blue industrial development for private sector through development of integrated sustainable value chains in AfCFTA;
Encourage countries to engage in efficient food management and storage projects in agriculture to improve food supply chains, limit price increases, and support agricultural resilience. In this regard, we urge the strengthening of the efficacy of free trade agreements, especially AfCFTA, to increase the resilience of African countries against food supply shocks;
Strengthen cost-effective investments and implementation at scale around food security and agriculture, for both adaptation and mitigation is an imperative, including on early action; protection to the most vulnerable through safety-nets, insurances, social protection; resilient infrastructure; nature-based solutions including land rehabilitation; climate smart agriculture; healthy and sustainable diets and access to markets through the AfCFTA. This should be a political and development priority across multiple sectors, as it is not only related to agriculture.
Can William Ruto tilt EAC trade balance? (Business Daily)
As Kenya welcomes William Ruto’s presidency Tuesday, the East African Community (EAC) will be keenly watching the new administration’s approach to foreign trade policies. With a combined gross domestic product (GDP) of over $100 billion — double that of Tanzania and nearly three times that of Uganda — Kenya remains the largest economy in the region. An analysis of trade data in the past decade under President Uhuru Kenyatta shows that Kenya’s balance of trade against EAC members has declined by Sh19.1 billion. Gains from Rwanda and Burundi have partially helped to offset much of the deficit incurred with Tanzania.
Data from the Kenya National Bureau of Statistics (KNBS) show trade surplus with the neighbouring countries in 2012 was Sh119 billion —which was inherited by Mr Kenyatta when he assumed office in 2013 — and it declined last year to Sh99 billion. Trade surplus between Kenya and Rwanda
New cargo vessel links Kisumu port to EAC region (Capital Business)
A 2,000 tones capacity Marine Vessel, Pamba Wagon Ferry owned by Mango Tree Group commenced the transportation of goods from the Kisumu Port to the East Africa region on Monday. The Group’s General Manager Franck Menard says they will be transporting goods from Kisumu Port weekly to Uganda and Tanzania. “We are off to Mwanza, in Tanzania, once we offload we head again to Jinja in Uganda with goods,” he said.
Menard says it takes one day to travel from Kisumu Port to any destination within the ports in EAC, noting that their services are efficient.
Improving shipbuilding capabilities in Africa (Businessday)
While investment in shipbuilding is huge, the need to import and export goods, as sparked by globalisation, made shipbuilding an important strategic industry. Shipbuilding has a complex value chain that demands skilled workers at each stage of this chain. Although Europe remains a crucial market to produce cruise vessels.
China is now repeating these models with large state-supported investments in the industry. Due to massive investment and low labour costs, China has emerged as the world’s largest shipbuilding nation.
Between 2014 and 2019, reports in foreign marine publications show that the number of active shipyards worldwide was nearly halved. During this period, more than 230 shipyards were closed due to the consolidation process within the shipbuilding industry globally. According to a maritime regulator based in Nigeria, this was caused by a decrease in the demand for new vessels, stemming from the uncertainty surrounding future fuel composition, propulsion systems and environmental regulations.
Liberalization Of Air Transport Can Speed Up Recovery Of Aviation Industry - President Kagame (KT Press)
President Paul Kagame says the sooner the African continent liberalises air transport, the faster the aviation industry can recover from the impact of the Covid-19 pandemic on the industry.
The Head of State made the call on Monday at the opening of the 6th Aviation Africa Summit in Kigali, which brought together leaders from African airlines, civil aviation authorities, business aviation and support industries to discuss how to resuscitate the continent’s aviation industry still reeling with post-pandemic effects.
President Kagame said that with the African Continental Free Trade Area (AfCFTA) coming into force, it is time African countries moved fast to implement the Single African Air Transport Market (SAATM) if the air transport industry is to recover and catch up with the rest of the world.
the Covid-19 pandemic severely affected the aviation industry worldwide, and Africa was no exception. Airlines and airports around the world faced massive layoffs,” President Kagame said. He however pointed out that now travel and tourism are getting back to normal, but the industry is not yet back to where it was, and a lot more needs to be done to open up the skies. “The further liberalization of air transport in Africa can act as a catalyst to speed up the industry’s recovery, by increasing connectivity, stimulating demand, and creating jobs,”
“In the wider context of the African Continental Free Trade Area, open skies help to link our businesses to regional and global supply chains, boosting trade and investment,” President Kagame said. “This is why the full implementation of the Single African Air Transport Market must remain a top priority,” he added.
Agra unveils $550m fund to fight food insecurity in Africa (The East African)
The Alliance for a Green Revolution in Africa (Agra) has unveiled a catalytic fund of $550 million for the next five years to boost efforts to improve food security on the continent that continues to struggle to feed itself. Under the new policy, Agra targets 28 million farmers in 15 countries to boost agricultural productivity and incomes. The focus in the next five years, from 2023 to 2027, will be on improving seed systems, government engagement, agricultural supply chains and mitigating climate change. Experts say smallholder farmers across the region remain vulnerable to shocks and bear the brunt of the current external pressures, including climate change and rising prices of farming inputs such as fertilisers.
Mr Hailemariam, a former Ethiopian Prime Minister, added, “Covid-19 put supply chains under intolerable pressure. The commodity price crisis, exacerbated by the Russia Ukraine crisis, is undermining food security and agriculture everywhere”. “We want farmers to be able to gain and retain the access to the right seed, at the right price and at the right time,” he said. The challenge facing most African countries is how to raise productivity and reduce food imports.
Bolstering food security in Africa with special economic zones (fDi Intelligence)
Global food insecurity is reaching its highest point in decades, with crop prices climbing to record highs in the first half of 2022. The crisis lies in several overlapping factors, including surging energy prices, limitations on the export of fertilisers, holdover Covid-era supply chain disruptions, and the ongoing war between Russia and Ukraine. While most of the world will face prohibitive costs and food shortages, the developing world — particularly Africa — faces high food insecurity risks over the course of the next few years.
Without addressing the foundational issues — low labour and land productivity, a general lack of infrastructure, poor access to credit and ineffective government policies — such countries will always be reliant on the rest of the world for food.
A potential long-term solution to the problem of agricultural productivity in Africa lies in the utilisation of special economic zones (SEZs) to support the development of a more robust agriculture industry — particularly agribusiness, but also farming itself, as I believe there will be an uptick in the number of zones that also host agricultural activities and are designed to augment the efficiency of farmers.
As Pakistan floods and India curbs rice exports, Africa braces for high prices (France 24)
The devastating floods in Pakistan, which plunged great swaths of agricultural land under water – coupled with India’s decision to curb its rice exports – risk exacerbating food insecurity in the African countries most dependent on imports from Asia.
The war in Ukraine, which sparked soaring wheat and corn prices, has hit the continent of Africa hard over the past six months. Now, a new food crisis looms as the continent faces a likely rise in the price of rice, a staple on many African tables.
Although food security in sub-Saharan Africa does not rely solely on rice, it remains the second-most-consumed cereal after corn. A surge in prices would be a further blow to populations already weakened by the rise in the price of foodstuffs.
Africa has been losing from 5 to 15% of its GDP per capita growth because of climate change and its related impacts, but needs about $1.6 trillion between 2022 and 2030 to meet its nationally determination contributions[1], says African Development Bank Group Acting Chief Economist and Vice President Kevin Urama. Speaking at a panel discussion—titled “African Countries Ownership in Determining Climate Agenda”— on the side-lines of the Egypt International Cooperation Forum (Egypt-ICF 2022) in Cairo on Wednesday, Urama urged developed nations to bridge the “climate financing gap.”
“Collectively, African countries received only $18.3 billion in climate finance between 2016 and 2019” Urama said. “This results in a climate finance gap of up $1288.2 billion annually from 2020 to 2030.” The chief economist added: “These sums reflect how the crisis is. Climate change affects Africa severely, while the continent contributes to only 3% of global emissions. The global community must meet its $100 billion commitment to help the developing countries and African economies to mitigate the impacts of the climate change and to adapt to it. Investing in climate adaptation in the context of sustainable development is the best way to cope with the climate change impacts, adding that gas must remain included in the continent’s plan for the gradual transition to clean energy.”
Mobile remittances to lead digital revolution in marginal rural areas in five African countries thanks to IFAD grant funded by the EU (Farmers Review Africa)
To harness the development benefits of using mobile channels to send and receive remittances, the UN’s International Fund for Agricultural Development (IFAD) announced today its first grant to a digital payments company, MFS Africa, to promote the use of mobile remittances in marginal rural areas in five African countries: Ghana, Kenya, Senegal, The Gambia and Uganda. Mobile remittances – the money that migrant workers sent home through digital channels using mobile technology – can play a catalytic role linking individuals and businesses to the formal economy, while providing access to key financial products and services such as transactions, credit, insurance, payments or savings that can boost their own social and economic wellbeing.
This public-private partnership will help MFS Africa and its partners unleash new and untapped markets in marginalized rural communities where mobile remittances can provide significant social and economic benefits to some of the poorest people thanks to lower transaction costs coupled with safer and more easily accessible remittance services.
Despite its staggering growth since the start of the pandemic, mobile remittances only represent 3% (US$16 billion) of the total remittances sent home by migrants to their families living in low- and middle-income countries. “In order to change habits and attract people to digital and formal sending channels, it is vital to provide consumer awareness and education on both sending and receiving sides, particularly in rural areas. But these activities do not offer immediate financial returns and are very resource intensive for service providers,” said Pedro de Vasconcelos, Manager of the Financing Facility for Remittances at IFAD
“Transferring money internationally should be as easy and as affordable as making a phone call. We look forward to growing the digital remittances market by increasing the diversity of actors and competition. This will ensure that African consumers have access to cost-effective and sustainable means of sending money,” said Nika Naghavi, Executive Director of MFS Africa.
Africa’s emerging markets vital for British businesses – Joel Popoola, IoD UK Ambassador (The Guardian Nigeria)
Joel Popoola, a British citizen of Nigerian descent is an ambassador of the Institute of Directors (IoD) North East (North) Branch in the United Kingdom. Popoola, who is the founder of the digital democracy project app, Rate Your Leader, is also Chair of the IoD’s Special Interest Group Africa. He speaks in this interview on why Africa is the emerging market for British businesses, among others
Africa is coming of age as a continent. After Brexit and post-pandemic, global markets are going to be vital for British businesses – and Africa’s emerging markets offer huge untapped potential. There is a huge cachet to buying British in Africa, meaning billions of potential customers for British businesses, many of whom have the products and services African nations’ companies and growing population needs. Britain has a lot to export – clean energy expertise, professional services, education, advanced manufacturing products, media, even football – and Africa is ready to buy. But is the UK ready to sell? One recent parliamentary report found that UK-Africa trade has ‘flat-lined’ – and accounts for just 2.5% of all UK trade. Pre-Covid the world’s five fastest-growing economies were all African, and regional leaders like Nigeria and South Africa are likely to become superpowers of the global economy as we move towards the second half of this century.
More needs to be done on both sides to take advantage of the opportunities on offer.
Global economy
DDG Zhang: Both AfCFTA and WTO are important to support Africa’s growth and prosperity (WTO)
Trade is a fundamental driver of growth, and both the African Continental Free Trade Area (AfCFTA) and the WTO are key to helping African countries achieve economic prosperity, Deputy Director-General Xiangchen Zhang noted on 7 September at a conference organized by 13 African members of the WTO Chairs Programme. He called on the chairs to support the implementation of outcomes of the 12th Ministerial Conference and expressed the hope that the chairs can “provide great insights on interactions and complementarities between the WTO and the AfCFTA”.
Poor roads slowing growth in developing countries - IMF (The Star)
Slow roads among developing countries pose an obstacle to inclusive growth, the International Monetary Fund (IMF) has said. An Economics and Finance insight by the international lender says speed at which goods are carried to customers in distant markets is key in determining sustainable and inclusive economic development. “High-speed roads can carry goods to far-off markets and in turn raise productivity and reduce poverty. They are also important contributors to the development and this is why economists spend time assessing the state of roads, “ IMF says. The report notes that poor, developing countries have the world’s slowest roads
Kenya has been on track to counter the issue of slow roads in enhancing faster connectivity. The country over the past decades has had steady improvements to road networks on the back of Chinese infrastructural developments such as the Nairobi-Thika Superhighway and the Nairobi expressway. With the projects coming into operation, commuters are now experiencing reduced traffic congestion and faster trips as cities and towns attract more investment. The superhighway, one of the first infrastructure projects to be carried by Chinese companies, has enhanced transport services and urban mobility in the Kenyan capital.
Black Sea Grain Initiative helps stabilize global food markets (UNCTAD)
The UN-brokered Black Sea Grain Initiative is reintegrating much-needed grains to global markets and contributing to bringing down prices of basic staples across the world. The agreement was signed in Istanbul by the Russian Federation, Türkiye, Ukraine and United Nations on 22 July 2022 to help stabilize spiralling food prices worldwide and prevent a food crisis that could affect millions of people.
As of 12 September, the initiative had enabled over 2.7 million metric tons of grain and other foodstuffs to move from the Ukrainian ports of Odesa, Chornomorsk and Yuzhny (Pivdennyi). The Food Price Index published by the UN Food and Agricultural Organization (FAO) showed double-digit percentage drops in the cost of vegetable oils and cereals in July and a further 1.9% fall in August. The UN will continue to work with all parties of the initiative to reintegrate Ukraine’s agricultural supplies as well as the food and fertilizer produced by Russia into world markets – despite the war – to better tackle the global food crisis.
Tax avoidance is increasingly damaging developing economies, says TIPS (Engineering News)
Billions of dollars in tax revenues are lost to African governments each year, owing to illicit financial flows and tax avoidance, which impacts countries’ ability to provide services and support industrial development. Trade & Industry Policy Strategies (TIPS) chairperson and Department of Trade, Industry and Competition industrial procurement chief director Dr Tebogo Makube explains that tax avoidance means legally reducing your taxable income, which has base erosion and profit-shifting affects as a consequence.
University of London School of Oriental & African Studies lecturer Jonathan Di John says tax speaks to State capacity, with governments using tax to finance public goods and social programmes. It can also be used as a strategic tool to promote development and incentivise production, particularly through tariffs.
He elaborates that there has been more emphasis in recent times on how efficiently and effectively governments are collecting tax and how tax links to production strategies over and above collection rates.
United Nations Industrial Development Organisation (UNIDO) convened the Fifth Steering Committee of the Global Network of Regional Sustainable Energy Centres (GN-SEC) with support of the Governments of Austria, Norway and Spain, from 5 to 8 September 2022 at the Vienna International Centre. The heads of ten centres, representing various economic communities and more than 108 developing countries from the Africa Arab, Asia Pacific, Latin America and Caribbean regions concluded with a clear message: “In times of fossil fuel price and climate escalations, regional cooperation is needed more than ever to accelerate the transition towards renewables and energy efficiency”.
Delegates also highlighted the difficulties in accessing climate financing for regional programmes. Regional cooperation can contribute to economies of scale by facilitating progress and joint learning, harmonization of policies and market standards, shared resources and intelligence, replication of best practice, as well as bundling of projects and efficient financing. The centres will jointly advocate for better recognition of the “missing regional link” to reach local level at COP27. The Centres are calling on development finance institutions, climate finance, and multilateral donors to include within its planning, regional allocations that will catalyze investments to achieve local level development impact.
IMF eyes expanded access to emergency aid for food shocks – Sources (SABC News)
The International Monetary Fund’s executive board, under pressure to provide emergency funding to countries facing war-induced food price shocks, reviewed a plan on Monday that would help Ukraine and other countries hit hard by Russia’s war, sources familiar with the matter told Reuters.
Developed by IMF staff in recent months, it would allow the IMF to support countries struggling with budget problems because of the war, without imposing conditions required in a regular fund program, said the sources, who asked not to be named since the plan has not been formally approved.
If approved, it would temporarily increase existing access limits and allow all member countries to borrow up to an additional 50% of their IMF quota under the IMF’s Rapid Financing Instrument, while low-income countries could tap the Rapid Credit Facility, the sources said.
“The concept is simple, but it could help many countries,” said one of the sources.
Food prices surged worldwide after the start of the war given blocked supply routes, sanctions and other trade restrictions, although a UN-brokered deal that allowed resumed exports of grain from Ukrainian ports last month has begun to help improve trade flows and lower prices in recent weeks.
Many African countries and other poor nations suffering food shortages and acute hunger have clamored for increased funds, but it was not immediately clear how many countries would seek the additional financing aid.
Related News
tralac Daily News
Local news
Local manufacturing key component to growing economy (SAnews)
President Cyril Ramaphosa says expanding local production and manufacturing is pivotal to creating more opportunities for entrants and making the economy more inclusive. On Friday, the President attended the launch of the Sandvik Khomanani Manufacturing Site in Kempton Park on Friday. The Swedish company is a manufacturer of mining and mineral processing equipment. Sandvik’s new facility is a manifestation of the R350 million investment commitment it made at the South African Investment Conference held earlier this year – a conference which raised some R332 billion in investment pledges into the country.
“The expansion of local production will make our economy more inclusive and create more opportunities for new entrants into the industrial sector,” the President said. He explained that manufacturing, particularly localised manufacturing, means greater exports and a boost for the South Africa’s Economic Reconstruction and Recovery Plan.
“Increasing local production will contribute significantly to the revival of South Africa’s manufacturing industry,” he said.
SA motorists hit by new 39% import duties on Chinese tyres (Fin24)
On Friday, government gazetted new anti-dumping duties of 38.8% on imported tyres from China. Currently, the duties – on eight sizes of tyres, for cars as well as large vehicles like buses and lorries - are imposed until March next year. Almost half of the tyres in South Africa are imported, mostly from China. Earlier the year, the SA Tyre Manufacturers Conference (SATMC) – which represents Continental, Bridgestone, Goodyear and Sumitomo – applied to the International Trade Administration Co
They contended that Chinese tyres are imported unfairly into South Africa at “predatory”, unsustainable rates. This caused “material injury to the domestic manufacturing industry”, which employs more than 6 000 people. On Friday, the Road Freight Association (RFA) warned that the new duties could push up the price of transporting goods by at least 8%.
“By adding the anti-dumping levy, tyre prices will now increase by a whopping 44.7% in a single year. This is untenable for any transport operation – whether moving freight or passengers – and will see increases inevitably being passed on to consumers,” said Gavin Kelly, CEO of the RFA.
Namibia imports N$24m South African tomatoes (Namibian)
DESPITE continued complaints from South African farmers over the closure of borders for importation of horticultural produce, Namibia imported tomatoes valued at N$24,6 million from South Africa. This contributed to a total of N$18,9 billion merchandise trade for July, a decrease of 3,9% from N$19,6 billion recorded in June, and an increase of 73,4% from N$10,9 billion recorded in July 2021.However, according to the Namibia Trade Statistics Bulletin issued by the Namibia Statistics Agency (NSA), the country’s trade balance remained in a deficit, worsening to N$4,3 billion from N$2,5 billion recorded in June, and N$3,6 billion observed in July 2021.
NSA chief executive officer Alex Shimuafeni says Namibia’s trade composition by partner showed that Botswana emerged as Namibia’s largest market for exports, whereas South Africa was the main source of imports.
Uganda’s public debt soars to Shs79 trillion (Monitor)
A recent parliamentary report has painted a gloomy picture of Uganda’s debt portfolio as the country struggles to keep up payments to its creditors. The Committee on the National Economy has revealed that Uganda’s public debt stock increased by 22 percent from Shs50.9 trillion in the 2019/2020 fiscal year to Shs69.5 trillion by end of the 2020/2021 fiscal year. Preliminary statistics from the Finance ministry captured by the committee indicate that Uganda’s public debt stood at Shs78.8 trillion at the backend of June. This represents a 13 percent monthly year-on-year increment.
The committee’s report also reveals that Shs48.1 trillion of the debt stock is classified as external debt, with domestic debt totalling Shs30.7 trillion. The telltale signs of public debt weighing heavy on the government has become more pronounced in recent months.
Uganda’s economic predicament has been a long time coming given the fact that its Gross Domestic Product (GDP) ratio has stagnated at an average of 13 percent for the last decade. “Customs revenue contribution to total tax collections stood at 35.6 percent in 2019/2020, with the Covid-19 pandemic and trade liberalisation prospects by [the African Continental Free Trade Area] AfCTA, this estimate will even go lower,” the paper states, adding that a Finance ministry report of the Financial Year 2019/2020 showed that a total revenue foregone due to tax expenditures amounted to more than Shs5 billion. This figure translates to 30 percent of the total net revenue collections collected that same financial year.
‘Review of the Weights and Measures Act will help Nigeria compete under AfCFTA’ (The Nation)
The Federal Ministry of Industry, Trade and Investment said a review of the Weights and Measures Act will help Nigeria compete with other African countries under the African Continental Free Trade Area, AfCFTA. Director, Weights and Measures Department in the ministry, Mrs. Comfort Emenbu, disclosed this at the North-West stakeholders’ engagement in Bauchi, adding that the country is prepared to be under AfCFTA. According to her, the commitment of the government had informed the decision to meet with stakeholders and seek their input for the review of the Weight and Measure Act.
FAO: Poor Quality Standards Danger to Food Security (This Day)
The Food and Agriculture Organisation (FAO) Country Representative in Nigeria and ECOWAS, Mr. Fred Kafeero, has said the organisation remained committed to ensuring the supply of safe, quality, and nutritious foods, adding that this is as important as ensuring the availability of foods and their standardisation. Kafeero insisted that poor-quality foods posed a real threat to national food security.
Speaking at the one-day sensitisation workshop for high-level policy and decision-makers and the public presentation of the National Codex Committee Procedural Manual in Abuja, the FAO country representative said it has been providing Nigeria with requisite support towards ensuring food safety and availability.
Nigeria’s budding trade opportunities with Indonesia amid an uncertain global economy (Nairametrics)
Indeed, the world is a global village. Travel and cross border commerce and investment levels have never been greater in the history of our planet. However, moments of crises and threats to the sovereignty of nations have a way of recalibrating national, business and human relations. Governments (national and subnational), businesses and individuals in Nigeria must therefore decipher the challenges of this moment in history and take proactive steps to weather the current economic storms by exploring prospects outside our borders. In the process, there is an opportunity to turn the current trials into a springboard for recovery and sustainable prosperity.
Nigeria’s recent partnership with Morocco to set up a $1.3 billion fertilizer plant is a step in the right direction to address the needs of our agroeconomy. Such actions will reflect a prioritization of the structural transformation that will ensure that Nigeria is not left behind and is better prepared for future crises. Furthermore, the deal models how countries can harness their economic strengths or natural endowments to build long lasting and mutually beneficial trade relations. Morocco needs ammonia for converting its phosphate reserves into fertilizer, but in order to produce ammonia, it needs access to natural gas, which Nigeria has in abundance. Indeed, Nigeria should invest resources in building and scaling similar arrangements with countries that can derive offer mutual benefits from increasing trade and investment.
One such country is Indonesia, south-east Asia’s largest economy and most populated country. Since President Joko Widodo took office in 2014, Indonesia’s Africa policy has prioritised economic engagement and cooperation with the continent. This has led to a steady rise in trade between
Don’t extend ban on exportation of grains again – Peasant farmers to government (Modern Ghana)
Peasant Farmers Association of Ghana has described the ban on the exportation of selected grains in the country as counterproductive. The government had announced an extension of the ban on produce such as maize, rice, soybeans, and other grains. The ban, which took effect in September 2021, was due to expire at the end of March. It will now run until September 2022.
Speaking to Citi News, Head of Programmes and Advocacy at Peasant Farmers Association, Charles Nyaaba, stated that the directive has negatively affected customers as the local market has not been able to absorb their produce. “The ban ends in September, and we do not expect the government to renew it. What government can do as a country hosting the secretariat of AfCFTA in that area is rather to open it, so we are able to trade with our neighbouring countries and subsidize grains for the industry.”
“There are grains in parts of the country, but no one is buying them from farmers because the road networks are bad. Government should rather invest in the road sector. When we do that, we will be good to go,” he advised.
Food security in Ghana has become a pertinent issue for several months now, with stakeholders warning of food shortage if the problem is not solved. While the government has consistently touted the progress made in the agriculture sector due to its interventions, issues such as a lack of access to poultry feed, fertilizer, and rising food prices, which are reflected in Ghana’s high food inflation, have got stakeholders in the sector concerned.
In order to address these issues, government has restricted the exportation of two of the country’s essential commodities: soya bean and maize. Already, the Plant Protection and Regulatory Services Directorate has stopped issuing phytosanitary certificates for the export of both commodities.
Egypt’s foreign trade volume increased to about $98.476bln by the end of March 2022 (ZAWYA)
The Central Bank of Egypt (CBE) announced on Saturday that the volume of Egypt’s foreign trade increased by the end of March 2022 to about $98.476bn, compared to about $71.721bn at the end of March 2021 — an increase of about $26.755bn. According to the monthly report issued by the CBE, the volume of Egypt’s imports rose to about $66.007bn, compared to $51.148bn, and that the value of its exports rose to $32.469bn, compared to $20.573bn. It added that 14 countries — representing Egypt’s most important trading partners — accounted for about 63.4% of the total volume of trade exchange between Egypt and the outside world with a value of about $62.389bn, noting that exports amounted to $21.236bn.
It also pointed out that China ranked first in terms of the most important trading partners with Egypt, with a trade exchange volume of about $8.633bn, $7.661bn of which were imports and $972m were exports. Next up was the US in second place with a trade exchange volume of $7.088bn, $3.686bn of which were imports and $3.402bn were exports.
Senegambia trade flow increasing – PS Dampha (The Point)
He said looking at the trade statistics, Ivory Coast and other countries were dominating the country’s trade. He added that recently they have seen the trade flow between the Gambia and Senegal increasing significantly. “Senegal is our neighbour and they are increasing their capacity and are able to export a lot to The Gambia. The current political climate between the two countries is also helping in increasing and boosting trade,” Dampha added.
Speaking on high tariff, PS Dampha explained that tariff is paid when importing and is the duty one pays at the border. He said it doesn’t affect individuals when exporting but is only subject to the market condition of their final destination.
“It affects export indirectly, for example, if you are exporting manufacturing products where you’re facing a high tariff to process raw material, it increases your cost and affects your price. It leads to an effect on one’s competitiveness.”
African trade and integration
AU records success in first decade of Agenda 2063 (Daily News)
THE African Union has recorded significant achievements in the first decade of implementation of Agenda 2063 (2013-2022) including advanced operationalisation of the African Continental Free Trade Area (AfCFTA). Agenda 2063 is Africa’s blueprint and master plan for transforming Africa into the global powerhouse of the future.
The Chairperson of the African Union Commission Mr Moussa Faki Mahamat revealed that through his message on celebration of African Union Day marked on September 9. According to him other achievements are transformation of the New Partnership for Africa’s Development (NEPAD) into an African Development Agency and the effective functioning of the Pan African University. In the list of achievements there is also the integration of the African Peer Review Mechanism (APRM) into the structures of the AU, the granting of the status of Specialised Agencies of the AU to the African Capacity Building Foundation (ACBF) and many others.
He, however, said that the second implementation decade of Agenda 2063, which starts next year, will revolve around three main objectives which are to ensure greater physical connectivity of the continent through the construction of roads and other communication infrastructures. Others are to establish the conditions for sufficient domestic agricultural production to reduce imports of foodstuffs and build the technical capacities to make the energy transition a success.
African bloc outlines 10-year plan (Anadolu Agency)
Africa’s second 10-year plan will focus on expansion of infrastructure development across the continent, increase agriculture outputs and clean energy transition, Moussa Faki Mahamat, Chairperson of the African Union Commission said Friday.
“It will revolve around three main objectives: to ensure greater physical connectivity of the continent through the construction of roads and other communication infrastructures, to establish the conditions for sufficient domestic agricultural production to reduce imports of foodstuffs and build the technical capacities to make the energy transition a success,” Mahamat said in a statement.
“Mobilizing all intellectual, financial and material resources, to attain this triple objective, is a collective challenge that calls upon everyone to be creative, inventive and above all bold,” he added.
DR Congo pledges to pay EAC dues and cement role in bloc (The East African)
The Democratic Republic of Congo says it will settle dues to the East African Community on time, reflecting the country’s commitment to its new membership in the bloc. On Thursday, DRC Deputy Prime Minister Christophe Lutundula said Kinshasa is ready to send representatives to EAC organs to cement role in the bloc it formally joined in May. The country, like other member states, is required to pay at least $8 million a year. Most countries owe the bloc membership fees, however, with South Sudan leading with more than $20 million due.
DR Congo needs to pass amendments to its laws to allow free movement of people, localise trade protocols of the EAC and send members to the East African Legislative Assembly, East African Court of Justice and the Secretariat.
Digital Regional Food Balance Sheet Launched (COMESA)
COMESA in partnership with several stakeholders, among them the Alliance for Green Revolution in Africa (AGRA) have launched the digital Regional Food Balance Sheet (RFBS). The RFBS aims to accelerate the application of digital, remote sensing and advanced analytical technologies to provide forecasts for major food commodities in the East and Southern African region. This initiative will help the region to inform policy and business decisions on food security, agricultural trade and investment.
SG Kapwepwe said that data gaps are worsened by a lack of collaboration and coordination among food system actors adding that several stakeholders collect data which stays unvalidated, shared, or consolidated into one central database to inform decision-making. The platform covers a few commodities, but will be expanded to other food commodities and countries as it continues to be developed, based on the users’ feedback, needs and requirements.
Steps Towards Harmonised Policy for e-Commerce in the Region (COMESA)
The Eastern Africa-Southern-Africa and Indian Ocean (EA-SA-IO) region is focusing on developing a regional model policy and regulatory frameworks for e-Commerce which will in turn facilitate several economic activities and contribute to economic development.
The benefits identified with having a well-functioning e-commerce sector includes reduced transaction costs, enhanced logistics, distribution and retail services and micro-small-and-medium-sized enterprises (MSMEs). These will be assisted to reach out to new markets and customers.
According to the project document, the penetration of mobile telephones in the EA-SA-IO region has increased because of both private and public sector investments in infrastructure. Further, internet penetration is also rapidly growing and the socio-economic benefits of accessing and using ICTs, in particular the internet, are also rising as essential information and services, both in the public and private sectors, continue to move online.
Despite these positive developments, according to the project document, many people in the region are still not connected to e-commerce services, especially the internet, and the cost of internet access is prohibitive in most cases.
Stakeholders seek ways to boost intra-regional fertiliser trade (The Guardian Nigeria)
Stakeholder from about 35 key fertiliser industries across Nigeria and Niger have sought deeper collaboration to enhance trade in the product within the region. They harped on the need to improve regional fertiliser availability and use by smallholder farmers for increased yields and general well-being. They made the call at a workshop organised by United States Agency for International Development (USAID)-funded ‘Feed the Future’ programme, under the Enhancing Growth through Regional Agricultural Input Systems (EnGRAIS) Project for West Africa.
In a statement, the governments of Nigeria and Niger, as well as Economic Community of West African States (ECOWAS) leaders and fertiliser facilitators were urged to facilitate collaborations among central banks for seamless fertiliser transactions in the local currencies.
Nigeria leading in Africa as global Bitcoin trade hit $3 trillion (The Guardian Nigeria)
Despite economic losses from cryptocurrency trade and caution by financial experts, global trade in the Bitcoin industry has hit $3 trillion. Coming at a time that Nigeria has been ranked as the leading country in Bitcoin adoption in Africa followed by Togo, Cameroon, Cote d’Ivoire, Senegal, Kenya and South Africa, the Convener of Bitcoin Africa conference, Farida Nabourema, said in the past five years, the industry has been the fastest on the planet and has surpassed card transactions.
She mentioned that the African continent has the fastest adoption rates in the world and at this rate, the continent may surpass America, Europe, or even Asia.
The World Customs Organization (WCO), in cooperation with the Japan International Cooperation Agency (JICA), has been carrying out the Master Trainer Programme (MTP) on Rules of Origin (RoO) for Africa the major aim of which is to cooperate with African WCO Members to implement the African Continental Free Trade Area (AfCFTA).
Based on the remarkable success of MTP and taking into account the needs from Members and the importance of improving the Customs capability in the region for the implementation of AfCFTA, the WCO and the JICA agreed to expand the MTP on RoO to Cameroun, Ethiopia, Madagascar, Senegal and South Africa.
The workshop in Brussels got new WG members together and provided them with the occasion to understand and apply the fundamentals of competency-based training. In addition, experts from the WCO and Japan Customs shared their expertise on technical aspects of RoO via their presentations and case studies.
Global economy
‘Solutions lie in solidarity’ UN chief says on South-South Cooperation Day (UN News)
In this era of unprecedented challenge and upheaval, “solutions lie in solidarity,” the UN chief said in his message commemorating United Nations Day for South-South Cooperation, on Monday. South-South cooperation is unity among people and countries of the developing world, known as the global South, which contributes to national well-being, collective self-reliance and achieving the global goals.
“South-South and triangular cooperation are critical for developing countries to mitigate and adapt to climate disruption, address the global health crisis, including COVID-19 recovery, and achieve all 17 Sustainable Development Goals (SDGs),” underscored Secretary-General António Guterres.
Gas as transition fuel: Will African stakeholders reach a compromise ahead of COP27? (TheCable)
Annually, world leaders gather in what is considered the biggest climate change summit known as conference of the parties (COP). This year, the 27th edition of the conference, otherwise known as COP27, is set to happen in Egypt in November. Africans see this as a great opportunity to advance Africa’s climate challenges and secure actionable solutions for the continent. One of such solutions is to ensure a just energy transition for the continent by attracting climate finance for technology and energy infrastructure. These would help Africa reduce its emissions while building its economy in a sustainable way. However, there have been inconsistencies in what stakeholders in the continent consider a just transition. While leaders in government are saying their desire is for the continent to use gas as a transition fuel, civil society organisations (CSOs) and experts are kicking against this.
A key intergovernmental forum on fisheries and aquaculture has endorsed new voluntary guidelines governing the transfer of fish between ships, in a move aimed at curbing the Illegal Unreported and Unregulated (IUU) fishing that threatens the sustainability of global stocks. The Voluntary Guidelines for Transshipment, developed by Members of the Food and Agriculture Organization of the United Nations (FAO) and presented at the 35th Session of the FAO Committee on Fisheries (COFI35), which closes today, “aim to regulate, monitor and control transshipment to support sustainable fisheries and further close loopholes that enable fish derived from IUU fishing to enter the market,” said Manuel Barange, Director of FAO’s Fisheries and Aquaculture Division.
The objective of the Voluntary Guidelines for Transshipment is to assist States, regional fisheries management organizations (RFMOs), and other intergovernmental organizations by providing standards for developing their policies and regulations that govern transshipment, with a view to integrating these in regulatory frameworks for sustainable fisheries management.
The Guidelines can support fishers, fish processors and others in the sector who act responsibly and in accordance with their fishing authorizations, while helping authorities to monitor and rebuild stocks, conserve marine biodiversity and build sustainability in the long-term.
Jobs outlook highly uncertain in the wake of Russia’s war of aggression against Ukraine, says OECD (OECD)
OECD labour markets bounced back strongly from the COVID-19 pandemic, but the global employment outlook is now highly uncertain according to a new OECD report.
Russia’s war of aggression against Ukraine has caused lower global growth and higher inflation, with negative impacts on business investment and private consumption.
The OECD Employment Outlook 2022 says that while labour markets remain tight in most OECD countries, lower global growth means employment growth is also likely to slow, while major hikes in energy and commodity prices are generating a cost of living crisis.
Related News
tralac Daily News
Local news
A 10% increase in manufacturing investment could yield a 13% boost to the economy (Engineering News)
A mere 10% increase in manufacturing investment in South Africa would result in a gross domestic product (GDP) contribution increase of 13% in South Africa, along with a 9% increase in fiscal revenue and an 8% increase in employment creation, Pan African Investment and Research Services economist Dr Iran Abedian has said. “Manufacturing in South Africa, given the structure of our economy, has a positive multiplier effect to the tune of 1.3 times because if you inject 10% into manufacturing, the total economy is better off 13%.
Manufacturers must increase export potential – export council (Engineering News)
Igniting investor relations and export potential, as well as increased investment in projects, are paramount to gaining traction when trying to reignite the economy post Covid-19, stresses South African Capital Equipment Export Council (SACEEC) CEO Eric Bruggeman.
He highlights the opportunities that were available at this year’s Electra Mining Africa 2022 expo, which was held at the Johannesburg Expo Centre in Nasrec, Gauteng, from September 5 to 9.
Bruggeman stresses that the manufacturing and export sectors face several challenges that need to be addressed as a matter of urgency. He affirms that the power crisis is the primary element negatively affecting manufacturing, while the state of South Africa’s ports and transport infrastructure is affecting its export capabilities. “Local manufacturers need a constant supply of power to maintain machinery uptime yet we sit with between two and eight hours of downtime a day.”
It is “disheartening” that South Africa’s ports rank as some of the least efficient globally, owing to a lack of infrastructure, materials handling equipment and logistics capacity to and from the ports, he laments. “South Africa’s ports need to be adequately maintained and upgraded to offer prospective investors and international clients the assurance that products will arrive at their destination on time and intact.”
Government is committed to eliminating illegal mining (SAnews)
Mineral Resources and Energy Minister Gwede Mantashe has warned that if not abated, illegal mining “will reach crisis proportions” and poses a “threat to national security, government authority and socio-economic development” in the country. Mantashe made these remarks during a National Plenary discussion on illegal mining in Parliament on Thursday afternoon.
“This criminal activity is in contravention of our laws and forms part of many other economic related crimes that are afflicting our society. Illegal mining is associated with very serious crimes such as illicit financial flows and high levels of violence, including gender-based violence and femicide. Furthermore, we have witnessed human trafficking, smuggling of weapons, and explosives linked to this crime.” A specialised cooperative unit is subsequently being formulated to deal with the scourge.
Tanzania dismisses claims of freezing maize export permits (The East African)
Tanzania has dismissed claims by Kenyan traders that it has frozen the issuance of new maize export permits, urging them to follow procedures. “Tanzania hasn’t barred issuance of permits for maize exports and it is not planning to do so. Traders should follow crop export procedures including securing crop export permits that are issued free of charge,” said Agriculture Minister Hussein Bashe told The Citizen on Wednesday. “Between August 27 and September 7, 2022, Tanzania issued maize export permits for 37,450 tonnes of the product,” added Mr Bashe. Agricultural produce exporters, he said, a required to secure an export permit and a phytosanitary certificate. Foreign exporters are required to register their companies in Tanzania.
Tanzania slaps new rules on Kenyan grain traders (The East African)
Kenyan grain traders seeking to import maize from Tanzania will now be required to register their companies in Dar es Salaam as the country imposes stricter rules to protect its commodities and jobs from shifting abroad. The new measure by Tanzania, which comes as a new trade barrier between the two countries, will have an impact on Kenya’s food security as the country relies heavily on cross-border stocks from this East African nation to bridge the annual deficit.
A notice issued by Tanzania’s Ministry of Agriculture wants foreign traders to register their companies in Tanzania to enjoy better terms and ensure a smoother flow of their commodities across the border. The measures include the mandatory requirement to secure export permits and the need for foreign exporters to register their entities domestically.
KEBS backs harmonized milk standards to promote dairy trade (Kenya Broadcasting Corporation)
The Kenya Bureau of Standards (KEBS) is on course to complete negotiations with Zambia in a move which will see Kenya resume milk exports to the southern Africa country. KEBS Director General Bernard Njiraini says though Kenya has sufficient standards for various industries, harmonization of the standards to include other countries will ensure Kenya’s dairy products are accessible in other markets through the African Continental Free Trade Area (AfCFTA).
Zambia banned Kenyan milk thirteen years ago due on safety concerns after processors in the southern Africa country claimed that milk imports exceeded the country’s total bacteria count. “Now we are moving to another level of having harmonized standards across Africa so that people from Zambia can access our milk because, sometimes we have disparities in terms of their thresholds in the counts and what we have,” said Njiraini on the sidelines of a food safety lecture held Thursday by professors from Washington State University at KEBS headquarters.
KEBS already commenced negotiations with Zambian authorities on harmonization of milk standards in an effort to open the market for local farmers. A Memorandum of Understanding between the two nations will be concluded in due course.
5 key factors to drive Nigeria’s $410 billion Energy Transition Plan implementation (Nairametrics)
The World Bank, the Global Energy Alliance for People and Planet (GEAPP), and the African Development Bank (AfDB) were just a few of the organizations that were present during Nigeria’s virtual launch of its Energy Transition Plan in August 2022. The event presented a roadmap for Nigeria’s journey to net zero by 2060. Net Zero Climate defines net zero as a state in which the greenhouse gases going into the atmosphere are balanced by the removal of such gases out of the atmosphere.
In September 2022, Nigeria’s Vice President, Prof. Yemi Osinbajo took a delegation to the United States to meet international bodies and the US government to seek financial support for the implementation of Nigeria’s Energy Transition Plan. Finance is an important part of building resilient energy systems in Nigeria, and so are these other factors: Research and Development; Regional Integration; Local Awareness Campaigns; and Strengthening Individual Financial Capabilities.
Mozambique to Introduce Express Train to South Africa and Eswatini (Mozambique News Agency)
The Chairperson of the Board of Directors of Mozambique’s publicly-owned ports and rail company (CFM), Miguel Matabele, has announced the introduction of an express train to South Africa and Eswatini, to facilitate the mobility of people and goods. Matabele made this announcement on Saturday, when the Mozambican Prime Minister, Adriano Maleiane, was visiting the CFM stand at the Maputo International Trade Fair (FACIM).
This step comes after CFM signed on 1 July an agreement with South Africa’s Transnet Freight Rail (TFR) for the elimination of the rail border and with Eswatini Railways on 5 August an agreement for direct rail links for the transport of goods.
In light of the agreement, the trains operated by CFM and the South African company TFR will now cross the border at Ressano Garcia without restrictions or the need to change rolling stock. Thus, the Maputo Corridor will have, in an initial phase, 21 trains per week carrying chrome and ferrochrome to the port of Maputo, compared with the current 15 trains per week. With Eswatini, the Goba railway border is removed, thus allowing the free circulation of goods trains between the two countries.
Egypt’s AfDB Country Strategy Paper launched during Egypt-ICF2022 (Egypt Today)
Egypt and the African Development Bank group (AfBD) launched Thursday Egypt’s AfDB Country Strategy Paper (2022-2026) during the second day of Egypt International Forum (Egypt-ICF2022). Minister of International Cooperation, Rania Al-Mashat stated that the country strategy paper (CSP) defines the relationship between the African Development Bank (AfDB) and Egypt during the coming five years.
Al-Mashat elaborated during her speech that the CSP is prepared based on the national strategic plans such as Egypt Vision 2030, Climate 2050 Strategy, Human Right Document, Hayah Karima initiative and new and renewable energy strategy.
Upgraded Maio Port to transform economy, boost trade in Cabo Verde (AfDB)
African Development Bank President Dr. Akinwumi A. Adesina on Wednesday inaugurated the upgraded Port of Maio in Cabo Verde, which will help reduce sea travel time to the capital Praia, and boost trade. The modernization of the Ports of Maio and Palmeira cost €36 million, with the African Development Bank providing €17.87 million. The Bank’s strategic partner, the European Union, provided €11 million in support, while the Cabo Verde government’s share of the funding was €7.8 million. “An investment like this brings rapid changes to livelihoods and transforms economies. It will connect Maio with the rest of the country and the world,” said Prime Minister José Ulisses de Pina Correia e Silva.
Adesina said the port inauguration marked another milestone for the resilient West African nation. “This beautiful port will transform the face of the economy of Maio. It will become better connected to the rest of the country, rapidly expanding business and economic opportunities and boosting tourism,” Adesina said. It used to take three hours to travel to Maio from Praia by sea. With the upgraded port of Maio, it will now take less than one hour. The project is also expected to make it a lot easier to sell salt, cheese, fish and other key commodities.
Deep-Water Somali Port Gives Landlocked Ethiopia New Trade Route (Bloomberg)
Somalia will open a deep-water port on its northern coast next month, with a road link forging a new trade route connecting Ethiopia’s south-eastern region with the city of Gara’ad. The development is part of a $531 million investment plan aimed at boosting the export of livestock, fish, minerals and agricultural commodities, according to Saed Faadi, the chief executive officer of Wadagsan LLC, the developer. The first two deep-water berths in the Puntland state’s city will be capable of docking 40,000-ton container ships and provide services such as modern loading equipment, refrigerated storage facilities and feeding grounds for animals. “The port will also provide easy access to food imports from the outside world,” Faadi said in an interview. “This will allow food to be less expensive and enhance food security in the region, which is plagued by droughts and famine.”
African trade and integration
Why harmonised logistics will spur intra-Africa trade (The Africa Logistics)
Regional trade across the globe is a complex interaction between people, companies and organisations. Supply chains traverse countries and regions. Trade has become an everyday business, and its performance largely depends on connectivity by roads, rail and sea, telecommunications, financial markets and information processing. Despite such knowledge of what facilitates trade, Africa’s regional trade potential remains under-exploited. The World Bank notes that trade between countries on the continent represents 12 percent of the total economic activity compared to 40 percent in Asia and 60 per cent in Europe. To bridge this gap, African nations instituted the African Continental Free Trade Area (AfCFTA) agreement on January 1, 2021. This marked the dawn of a new era in intra-regional trade facilitation.
While the agreement focuses on facilitating trade and services and easing the regulatory measures and technical trade barriers, a lot needs to be done. For Africa to boost intra-regional trade from the 12% reported by the World Bank to the target of 20 percent, it needs to make significant changes in technology, infrastructure, and policy reforms. For one, boosting intra-African trade requires the continent to encourage more investment opportunities for product diversification. Currently, there exist narrow patterns of trade depending on primary products involved in low levels of inter-country trade.
Since most African countries mainly export raw materials to import finished products, there is little that the African countries are interested in importing from each other. There is a need for export diversification and product sophistication, which will allow for the inclusion of more small and medium-sized enterprises (SMEs), encouraging innovation as markets expand.
Currently, trade between African countries comprises 61% of processed and semi-processed goods. This suggests significant potential benefits from greater regional trade ideal for transformative and inclusive economic growth.
AfCFTA implementation: GRA allays fears over revenue losses (Ghanaian Times)
The Ghana Revenue Authority is allaying fears over the projected loss of revenue from tax collection due to the implementation of the African Continental Free Trade Agreement (AfCFTA) in the short term. According to the World Bank, there will be a decline in port tariffs for member countries, as a result of the trade agreement.
The decline in revenue is expected to be moderate in the early years due to progressive liberalisation, however, in the longer term, between 2025 and 2045, the decline will increase from three to nine per cent.
Commissioner General of the Ghana Revenue Authority, Rev. Dr Amishaddai Owusu Amoah: “You will agree with me that the intra-African trade is not huge and therefore the initial losses are not expected to be significant. But we can’t be idle with coming up with strategies so that as we integrate the systems, people may take advantage of the systems like what happened in the European Union with the introduction of VAT,” he said. “To this end, we are ensuring efficient systems and strategies that will ensure maximisation of trade and boost in revenue for the long term.” He was confident that the summit would come out with seamless policy recommendations that could help deal with revenue challenges by member states.
Malawi’s intra-Africa trade rises to 32%, boosted by AfCFTA – Brookings study (The North Africa Post)
Trade exchange between Malawi and other countries in the African region has improved over the years, with statistics showing that Malawi now accounts for 32% of intra-Africa trade A recent study published by Brookings Institution Africa Growth Initiative indicates that at 32%, Malawi ranks on position seven out of 13 countries that have improved performance, with Eswatini, formerly Swaziland, claiming 85% share of intra-Africa trade. This means that opportunities for Malawians to generate revenues through trade have improved over time, countering a previous narrative and data that the country’s intra-Africa trade is low.
The study, titled ‘Significance of Intra-Africa Trade: Getting the Narrative Right’, which analyses development and progress towards intra-Africa trade, demonstrates that trade between African countries has generally risen and provided a greater economic significance than previously thought. “Currently, sets of African countries, particularly the smaller, landlocked and more open economies like Malawi have significantly higher levels of dependence on intra-continental trade [imports plus exports] than others thus improving intra-Africa trade,” the study says. The African average of intra-regional trade is, however, dragged down by the continent’s larger economies, especially Egypt, Nigeria and to a lesser extent South Africa who claim the highest share of intra-Africa trade.
the country in southeastern Africa needs to diversify its export products and local production to build on the momentum in growing its trade in the process of generating foreign exchange, according Betchani Tchereni, an economist from Malawi University of Business and Applied Sciences. “The trade treaties and policies in place should compel us to trade more with our regional peers and think of diversifying our product portfolio.”
Kenya: State banks on Africa free trade area to grow country’s exports (The Standard)
The government has renewed efforts to expand trade across the continent through the five-year National Africa Continental Free Trade Agreement (AfCFTA) Implementation Strategy (2022-27). A Ministry of Trade policy brief released in August this year noted that the AfCFTA is a game changer and a key engine of economic growth and industrialisation for sustainable development. “The agreement enables country specialisation in sectors with comparative advantage, economies of scale, structural transformation and the creation of a continental single market of over 1.2 billion people and a combined gross domestic product (GDP) of over Sh300 trillion ($2.5 trillion),” the ministry said. The State is confident that the set objectives are achievable given, among other factors, the expected rebound of domestic exports.
African countries need regional integration to manage external shocks (Businessday)
African countries have to work actively together to drive regional integration and minimize the adverse impact of external shocks like the Russia-Ukraine war, Peter Olowononi, head, of client relations, Anglophone West Africa at the African Export-Import bank has said. He explained that, “in all of these there must be free movement of people and goods. “With the barriers to movement we saw we needed to break the barriers of flow of goods and services. Infrastructure has to play a key role, we created an Africa Trade Export platform. Once the trade occur, through a payment platform we see the trade happen with externalities diminishing,” Olowononi stated.
Maiden conference for women and youth in trade on AfCFTA soon (News Ghana)
The Secretary General of the African Free Continental Trade Area (AfCFTA), H.E. Wamkele Mene, will be holding a historic Conference in Tanzania from September 12 – 14, 2022 to demonstrate their commitment to the inclusion of Women and Youth in the AfCFTA. The conference, slated for the Julius Nyerere International Convention Center in Dar es Salaam will be under the theme “Women and Youth: The Engine of AfCFTA Trade in Africa”. It will provide a platform for women and youth in trade, policymakers, development partners, financiers, and other key stakeholders on the continent to discuss, in-depth, perspectives on women and youth in trade.
The thematic focus of the Conference will be on six (6) key pillars that constitute a part of the sectors in which women and youth are engaged including Leadership in Trade, Financial Inclusion, Creative Industries, Digital Solutions to Trade, Informal Cross Border Trade and Industrialization and creation of linkages.
Experts outline ways to unlock Africa’s platform economy (Businessday)
Nigeria and other African countries will unlock the billions of wealth hidden in their platform economy, if they can implement seamless continental and regional trade and seek funding from diverse sources, speakers at the 13th CEO Forum said.
Michael Cusumano, a distinguished professor of management and deputy dean at MIT Sloan School of Management, said an industry platform is a “foundation product or service that many people and organisations can use to exchange information and goods or to sell ‘complementary’ products and services”. According to him, platforms, which are still lacking in many African countries, have the potential to bring together two or more key market participants, generate value from “network effects”, create value and get network effects started.
Frank Aigbogun, publisher and CEO of BusinessDay, in his welcome address, said: “Nigeria’s fintech sector keeps attracting funding and global attention is a confirmation that the private sector has the potential to rescue the Nigerian economy... Trade between Nigeria and other African countries has grown tremendously. We are looking to get Chinese banks into Nigeria to facilitate transactions if the Central Bank of Nigeria is ready. We support the export of more products from Nigeria to China because the relations that the two
The Southern African Development Community (SADC) has taken an important step towards enhancing seamless flow of intra-regional trade following the launch of the electronic Certificate of Origin (e-CoO) in Blantyre, Malawi, on 7th September 2022 under the theme ‘Enhancing trade facilitation through the SADC Electronic Certificate of Origin’.
The recently launched e-CoO is intended to address the challenges encountered with the use of manual Certificate of Origin by simplifying customs procedures, enhancing e-Commerce, eliminating fraud, improving record management and statistical data, reducing cross-border certificate verification time as well as reducing the cost of doing business.
Speaking at the launch of the SADC e-Certificate of Origin, Commissioner General of the Malawi Revenue Authority (MRA), Mr. John Biziwick, said the e-Certificate of Origin will improve the way business is conducted in the Region because the challenges that were associated with the manual processing of the certificate will be eliminated. He said the electronic system will allow manufacturers, producers and exporters to electronically register their products for preferential treatment and apply for Certificates of Origin whenever there is an export shipment, adding that the introduction of the SADC e-Certificate of Origin will increase the seamless flow of intra-trade across the SADC Region by eliminating impediments caused by the manual process.
The SADC e-Certificate of Origin will go a long way in supporting the implementation of SADC Industrialisation Strategy and Roadmap (2015-2063) and is in line with the Regional Integration Agenda as outlined in the Regional Indicative Strategic Development Plan (RISDP 2020-2030) as well as the consolidation of the SADC Free Trade Area (FTA).
East African Private Sector have urged Governments to for fast-tracked harmonisation of East African Standards during the EABC-TMEA Regional Public Private Engagement on Standards held in Dar es Salaam, Tanzania. Evidence shows harmonization of standards has increased in intra-trade by 10%, reduced inspection & clearance costs at the border from USD. 500 to USD. 400 and clearance days from 10 days to 0.5 days. Harmonisation of standards significantly contributes to growth of intra-regional trade, competitiveness, protection of consumers& environment and overall trade facilitation.
To date a total of 624 indigenous standards have been adopted by EAC Partner States and a total of 1880 standards have been earmarked for harmonisation at the EAC level. Other notable reforms include: the establishment of the Regional Standards Plan (RSP) and an Online catalogue of harmonised standards has been developed since 2021. The National Standards Bureaus in EAC Partner States are at different levels of harmonisation of standards ranging from 65% to 90%.
Voluntary Sustainability Standards in East Africa (September 2022) (ReliefWeb)
Voluntary standards that guide farmers to adopt more sustainable practices can help grow agricultural production and trade in East Africa, according to new research from the International Institute for Sustainable Development (IISD), published during the AGRF 2022 Summit in Kigali, Rwanda. “Agriculture is an economic pillar in the region, a fact echoed by leaders at the AGRF Summit this week. It’s the largest employer in many countries,” said Laura Turley, Associate with IISD’s State of Sustainability Initiatives project and the report’s lead author.
“Our analysis shows that by adopting sustainability standards, these farmers can boost productivity, improve intraregional trade, and build resilience to climate change,” said Turley. “Critically, they bring these benefits while protecting vital ecosystems, managing scarce resources efficiently, and supporting workers’ livelihoods and rights.”
“By adopting these standards, farmers in East Africa can address some of the persistent challenges they face, such as pest and disease control and crop contamination,” she said. The report includes several recommendations for standard-setting bodies, as well as the EAC and its Partner States.
EAC states told to tap potential of creative industry (The Citizen)
The East African Community (EAC) member states have been implored to tap the full potential of the creative industry. The creative economy is projected to represent 10 percent of the global Gross Domestic Product (GDP) by next year, the International Finance Corporation (IFC) projected in December last year. Creative industries are those based on individual creativity, skill and talent, or which have the potential to create wealth and jobs through the development or production of intellectual property. The sector will not only promote economic growth and create employment opportunities, it will also improve social inclusion and export earnings.
A Creative Economy report for 2018, indicates the global market of cultural goods and services had doubled from $208 billion in 2002 to $509 billion in 2015. “The creative industry is one of the sectors that the EAC region is looking at in creating more employment opportunities especially for the youth,” Burundi President Evariste Ndayishimiye pointed out.
Leaders emphasize the importance of partnerships in achieving NDCs (ESI-Africa)
Panelists at the recent Africa Climate Week underlined the power of partnerships to deliver Nationally Determined Contributions (NDCs) across the continent. Representatives from across Africa gathered to share their experiences of implementing NDCs. They noted that partnerships and effectiveness in measuring, reporting and verifying greenhouse gas emissions would be key to African countries hitting their various targets. Partners of the Africa Nationally Determined Contributions (NDCs) Hub hosted a session entitled Enabling faster and efficient NDC support through advocacy and partnerships. These included the African Development Bank, which also hosts the Africa NDC Hub, UNECA, the African Union Commission, UNDP and the Global Green Growth Institute.
UNECA’s director for technology, climate change and natural resources management, Jean-Paul Adams, said: “To be effective, NDCs needed to be integrated in national budgeting systems to receive funding from the national treasury.”
The deputy director of the United Nations Environment Programme (UNEP) Africa Office, Dr Richard Munang, said there was no one size fits all model. African countries should rather consider their own individual contexts and prioritise sectors in which they enjoy a comparative advantage. He also stressed the importance of tapping Africa’s youth dividend.
A new report signals progress on African countries’ efforts toward readiness for green growth (AfDB)
The African Development Bank and the Global Green Growth Institute (GGGI have launched a report analysing the readiness of seven countries - Morocco, Tunisia, Kenya, Rwanda, Senegal, Gabon and Mozambique - to drive green growth. The joint report was launched on the sidelines of Africa Climate Week, in Libreville, Gabon. It assessed the status and trends of green growth as well as countries’ preparedness for the green growth transition across a number of metrics. It also offered recommendations for the countries surveyed in the report.
Malle Fofana, GGGI’s Director and Head of Programs for Africa said: “Our joint study Green Growth in the Context of NDC, LTS and SDGs Implementation in Africa, which assesses the state and readiness of green growth implementation, highlights key valuable insights for our members states.”
The report found evidence that African countries are demonstrating growing political commitment to green growth. Governments actively champion the UN Sustainable Development Goals and nationally determined contributions under the Paris Agreement. Kenya, Morocco and Tunisia, in particular, have incorporated into their constitutions citizens’ right to a clean and safe environment and other related rights. Rwanda, Kenya, Morocco, Senegal and Mozambique have adopted national green growth and climate-resilient economic strategies.
African airlines saw cargo volumes dip by 3.5% in July 2022 compared to July 2021: IATA (Africa Aviation News)
African airlines saw cargo volumes decrease by 3.5% in July 2022 compared to July 2021. This was significantly slower than the growth recorded the previous month (5.7%) and the capacity was 2.2% below July 2021 levels as per IATA’s recently released July numbers. The International Air Transport Association (IATA) recently released data for July 2022 global air cargo markets showing that demand continued to track at near pre-pandemic levels in July (-3.5%), but below July 2021 performance (-9.7%).
Among several noteworthy factors in the operating environment are the new export orders, a leading indicator of cargo demand, decreased in all markets, except China which began a sharp upward trend in June.
“Air cargo is tracking at near 2019 levels although it has taken a step back compared to the extraordinary performance of 2020-2021. Volatility resulting from supply chain constraints and evolving economic conditions has seen cargo markets essentially move sideways since April. July data shows us that air cargo continues to hold its own, but as is the case for almost all industries, we’ll need to carefully watch both economic and political developments over the coming months,” said Willie Walsh, IATA’s Director General. Many of the challenges and opportunities facing the air cargo industry will likely be discussed at the World Cargo Symposium which is slated to be held in London, from 27-29 September.
It’s full steam ahead for China-Africa trade flows (China Daily)
On Aug 23, a ceremony in Beijing commemorating the arrival of the first batch of avocados from Kenya also serves as a launchpad to welcome more African produce into the vast Chinese market. This follows the arrival of some 20 metric tons of fresh Hass avocados from smallholder Kenyan farmers in Shanghai on Aug 2. That same day, the China-Africa Business Council released a report on China’s investments in African countries and said the two sides have made great strides in all-around, multilevel and wide-ranging cooperation over the past 22 years. The report showed that Chinese companies are committed to investing in Africa’s supply chain. Humphrey Moshi, director of the Center for Chinese Studies at the University of Dar es Salaam in Tanzania, said China’s rise as one of Africa’s leading trade partners is owed to the fact that China’s investment portfolio in Africa is very diversified, covering a broad range of sectors.
“In assessing the feasibility of China’s trade trajectory in Africa, we note that China does not apply the narrow Western assessment criterion of economic viability alone, but a much broader and more comprehensive criterion of socioeconomic development,” Moshi said. He added that the Forum on China-Africa Cooperation has been instrumental in driving the rise of trade between Africa and China and is a continuation of China-Africa friendship, which provides a guarantee for high-level China-Africa relations in the new century.
ICYMI: China scraps tariffs for 9 African countries (The Exchange)
It comes on the heels of Chinese President Xi Jinping’s declaration at the China-Africa summit held in 2021 that measures would be taken to increase agricultural imports from Africa. Xi stated at the time that the goal was to increase continental imports to US$300 billion (€302 billion) in the next three years, ultimately reaching US$300 billion per year by 2035. Africa, which continues to export raw materials to China, accounts for a small portion of China’s imports. Agriculture and food purchases to China from African countries managed to reach US$161 billion in 2020, accounting for 2.6% of total Chinese imports.
China has removed Tariffs on 98% of products imported from 9 of Africa’s poorest countries. Experts believe the measure will have a little economic impact. However, China’s image may improve. The new tariff policy, which took effect on September 1, is applicable to mineral and agricultural imports from Chad, Central African Republic (CAR), Eritrea, Djibouti, Mozambique, Guinea, Rwanda, Togo, and Sudan. A few Asian countries have joined the scheme.
Global economy
WTO head Ngozi Okonjo-Iweala: how trade can help beat inequality (The Conversation)
Trade tends to have a bad name, especially among young people. For them it’s synonymous with globalisation, which they don’t see as a good thing. But trade has been an instrument for lifting over a billion people out of poverty. It’s worth remembering that in 1980, over 40% of the world’s population lived on less than $1.90 a day, and that just before the pandemic this had gone down to 10%. And a lot of that was due to the effects of bringing into the global trading system countries that were outside of it. Admittedly, China is a shining example of a country that benefited the most from this trade. So trade has had its benefits.
That being said, it is undoubtedly true that poor countries were left behind. Now, the WTO charter is about creating employment, enhancing living standards, supporting sustainable development. It’s all about people.
The discussion now about the diversification of supply chains presents an opportunity to use trade as an instrument for inclusion. And I call it re-globalisation. We are talking to companies in developed countries to adopt a strategy of global diversification of value chains. That way they can look at Africa. Take South Africa. It is capable of attracting some of these supply chains. Other African countries that are capable are Ghana, Senegal, Rwanda and Nigeria.
Trips waiver outcome: domestic IP reform needed (Health-E News)
The COVID-19 pandemic highlighted the need for pandemic preparedness in low- and middle-income countries (LMICs) with vulnerable populations. LMICs face a double burden during pandemics because they are often last in line to access available medicines and vaccines to reduce life-threatening diseases. This does not bode well for LMICs with overburdened public healthcare systems.
Domestic intellectual property reform is necessary for pandemic preparedness to enable local production and manufacturing. It will also aid the transfer of technology. Most importantly, it will increase access to affordable medicine and realise people’s right to healthcare services.
After months of negotiations, the WTO reached a disappointing ministerial decision that does not waive any intellectual property on COVID-19 medical tools. Instead, it clarifies existing public health flexibilities within TRIPS, particularly on the procedures of using compulsory licenses on patented products. It has narrowed the decision to vaccines and excludes therapeutics and diagnostics which are crucial in combatting COVID-19. The decision does not fit the current pandemic. It also creates a negative precedent for future pandemic responses.
The disappointing WTO outcome increases the urgency for domestic intellectual property law reform in the interests of public health and the realisation of people’s constitutional right to access healthcare services. In May 2018, the Department of Trade, Industry and Competition (DTIC), in its Intellectual Property Policy I, recognised the need for domestic reform in the interests of public health. But limited progress in kickstarting law reforms.
G20 development ministers agree to accelerate SDGs (ANTARA)
The G20 Development Ministerial Meeting (DMM) has agreed on accelerating the realization of the sustainable development goals (SDGs) by strengthening the resilience of developing countries in facing future potential crises. “The development ministers have agreed to strengthen the commitment of multilateral cooperation to accelerate the achievement of the sustainable development goals,” Minister of National Development Planning and head of the National Development Planning Agency (Bappenas), Suharso Monoarfa, said in Belitung on Thursday.
The G20 DMM has completed and agreed on two documents: the G20 Road Map for Stronger Recovery and Resilience and the G20 Principles for Improving Blended Finance. Both are targeted at assisting developing countries, least developed countries, and small island developing countries.
Monoarfa explained that the acceleration of achieving SDG goals can be carried out through several forms of commitment, which include strengthening multilateral cooperation and supporting the increase in the scale of the blended financing scheme. Moreover, the competitiveness of micro, small, and medium enterprises (MSMEs) must be increased by implementing adaptive social protection and supporting sustainable growth by encouraging transformation towards green and blue economies.
Human development falling behind in ninety per cent of countries: UN report (UN News)
The 2021/22 Human Development Report (HDR) – which is entitled “Uncertain Times, Unsettled Lives: Shaping our Future in a Transforming World” – paints a picture of a global society lurching from crisis to crisis, and which risks heading towards increasing deprivation and injustice. Heading the list of events causing major global disruption are the COVID-19 pandemic and the Russian invasion of Ukraine, which have come on top of sweeping social and economic shifts, dangerous planetary changes, and massive increases in polarization. Almost all countries saw reversals in human development in the first year of the COVID-19 pandemic.
For the first time in the 32 years that the UN Development Programme (UNDP) has been calculating it, the Human Development Index, which measures a nation’s health, education, and standard of living, has declined globally for two years in a row. Human development has fallen back to its 2016 levels, reversing much of the progress towards the Sustainable Development Goals which make up the 2030 Agenda, the UN’s blueprint for a fairer future for people and the planet.
Related News
tralac Daily News
Local news
South Africa halts orange exports to EU over fungal disease (Reuters)
South Africa, one of the world’s biggest citrus exporters, will voluntarily stop shipments of valencia oranges to the European Union (EU) from areas affected by a fungal disease, the citrus growers’ association said on Wednesday. The decision to halt exports to the EU comes after 10 incidents in which the fungal disease was detected on South African citrus, Citrus Growers’ Association (CGA) Chief Executive Justin Chadwick said in a statement. Chadwick said the voluntary decision was meant to safeguard South Africa’s long-term access to the EU, its biggest export market, which accounts for over 40% of orange shipments and 27% of soft citrus, according to South Africa’s National Agricultural Marketing Council.
“With a month left of the current export season, the CGA and the Fresh Produce Exporters’ Forum boards have taken the decision to voluntarily close the export of Valencia oranges from Citrus Black Spot affected areas in South Africa to the EU starting from the 16th of September 2022,” Chadwick said.
The EU implemented new phytosanitary rules requiring enhanced cold treatment for orange imports from Africa, amid concerns over the False Coddling Moth (FCM), a pest which affects citrus fruit. The move disrupted shipments from South Africa, which initiated a dispute settlement case at the World Trade Organisation (WTO) over the matter.
The dispute was eventually settled after negotiations by the two parties, clearing 1,350 shipping containers of citrus fruit which had been stuck in EU ports for weeks.
Local french fry importers push back against anti-dumping tariff (Mail & Guardian)
Food importers and local manufacturers are lobbying against a heavy anti-dumping tariff imposed by the South African International Trade Administration Commission (ITAC) on frozen french fries imported from Europe. According to Fred Hume, managing director of Hume International, one of the largest food importers in South Africa, the heavy import duties on products like frozen chips came about without doing due diligence and that ICAT made the call without consulting with the supply chain that the decision directly impacts. “We have been afforded [tariff] protection over the past decade, but the effects on us as importers in South Africa is that they have disrupted our supply chains numerous times,” said Hume.
French fry importers have asked the government to consider an approach similar to the poultry industry where anti-dumping duties were suspended for 12 months.
Why SA isn’t getting the growth it needs (BusinessLIVE)
The findings of the Covid Project — a series of independent papers commissioned from several of SA’s leading research economists — are alarming but not surprising. Overall, they paint a dismal picture of lost opportunities in a country that has failed to grow substantially for the past decade. While the research reinforces much of what is already known about the economy — that SA “is getting poorer and its people more desperate” — its main departure is to show that the country’s failure to grow faster stems from inappropriate or inadequate policy choices...
Why Kenya Pipeline is raising transport costs (Business Daily)
Kenya Pipeline Company (KPC) will be handed more than Sh1.4 billion a year from the proposed transport, storage and handling tariffs of refined fuel, as it seeks more billions to build a new pipeline. KPC says that the cash will be used to build a new pipeline from Mombasa to Nairobi by December 2024 as the company races to meet increasing demand in the local and regional markets. Transport tariffs will rise to Sh3.87 per cubic metre for every kilometre in the year ending June 2023 from the current Sh3.56. This will further increase to Sh4.09 in the year to June 2024 and Sh4.06 a year later.
“We have lined up new investments. We are putting up a new line (Mombasa-Nairobi) and that is going to cost us quite a bit of capital,” Elizabeth Akinyi the Chief Planning Officer of KPC said on Wednesday when during a public participation forum for the proposed tariffs.
The estimated revenues will be higher given that the Sh1.352 billion is based on the annual throughput of KPC that was 7.6 million litres annually in the 2021/22.
Uganda farmers, millers seek ban on maize exports (The East African)
Ugandan farmers and millers are seeking a ban on the export of maize so as to retain husks used for the manufacture of animal feeds. Following the disruption of grain supplies from Ukraine and Russia in the wake of the Moscow invasion, countries in East Africa have been competing for the limited maize stock for consumption and producing animal feeds. The government estimates the country will produce about 2.5 million tonnes of maize this year, down by half, due to poor rainfall.
Agriculture Minister Frank Tumwebaze said the farmers and processors want the government to only allow the exportation of maize flour. “Their argument is that this would bring in more value and also make animal feeds available and cheaper,” he said. Mr Tumwebaze said the government would study the impact of such a ban.
Uganda: Members of Parliament pass Bill promoting local content (ZAWYA)
Parliament has passed the National Local Content Bill, 2022 intended to foster promotion of local content in all but the oil, gas and petroleum sector. Among others, the bill seeks to impose local content obligations on a person using public money or utilising Uganda’s natural resources or carrying out an activity requiring a licence to prioritise Ugandan citizens and resident companies owned by citizens in public procurement. Key among them being section 4 of the bill that tasks a local content entity to give preference to goods which are manufactured in Uganda as well as services which are provided my Ugandan entities.
“The bill is in conflict with the East African Monetary Union. Under Article 13 of the Customs Union Protocol, the [East African Community] EAC partner states agreed to remove all existing non-tariff barriers to trade and not to impose any new ones,” said President Yoweri Museveni in his letter to the Speaker.
“It is not feasible for one department to approve local content plans from bidders, for each individual procurement for the whole country,” the President further stated in his letter.
Increased value addition to spur manufacturing sector growth (Chroincle)
THE local manufacturing sector is expected to grow by 3,7 percent next year on the back of continued Government support as well as increased value addition and beneficiation, a Cabinet Minister said on Wednesday. Industry and Commerce Minister Sekai Nzenza said this while officially opening the Confederation of Zimbabwe Industry (CZI) annual congress in the capital. She said the Government had put in place various measures to stabilise the economy to create a conducive business environment, which had resulted in improved capacity utilisation in the manufacturing sector from 47 percent in 2020 to 56,25 percent last year.
“Cognisance of the prevailing macroeconomic environment, the manufacturing sector is projected to grow at an average of 3,7 percent during 2023, on the back of value addition and beneficiation activities in the mining and agricultural sectors,” she said.
She urged the local industry to also tap into the Africa Continental Free Trade Area and other market access opportunities in the Sadc and Comesa regions, to increase capacity and enhance competitiveness in export markets.
FG must ramp up investment in transport, power infrastructure before N4 trillion subsidy removal (Nairametrics)
Nigeria’s petrol subsidy payments which gulped a whooping sum of N2.04 trillion between January and July 2022 to cushion the price effect on Nigerians is set to rise further to a little over N4 trillion. Removal of this welfare package will hit hard on Nigerians unless there is adequate investment in transportation and power, which Nigerians spend heavily on.
The N2.04 trillion subsidy payments in the review period, represents a N1.78 trillion variance from the prorated N258.25 billion budgeted by the federal government. This is contained in the NNPC presentation to the Federation Account Allocation Committee (FAAC) for the month of August 2022.
As a result of the huge subsidy payment, stated under-recovery of PMS or value shortfall, which is the cost of under-priced sales of petrol, Nigeria is now set for its biggest ever fiscal imbalance in history.
However, with petrol subsidy payment expected to quaff at least N4 trillion, increased debt servicing cost, and oil revenue still underperforming as a result of oil theft and under-production, the difference between revenue and expenditure in 2022 could just overshoot the previous year’s record.
Local Oil Refiners Seek CBN, NNPC’s Intervention to Address Funding, Feedstock Challenge (This Day)
Indigenous oil refiners under the aegis of Oil Refiners Association of Nigeria (CORAN) have appealed to the Central Bank of Nigeria (CBN) to create crude refinery intervention fund similar to the agricultural credit fund or the pharmaceutical fund domiciled at the apex bank to drive effective business operations in the country. They also called on the Nigerian National Petroleum Company (NNPC) Limited to consider taking equity or grant loans to modular refineries via the provision of reformer and other requirement units to ensure adequate production of petrol based on agreed offtake conditions.
Global Gateway: Inauguration of Maio port in Cabo Verde to boost connectivity and green growth (European Commission)
The Government of Cabo Verde, the European Union and the African Development Bank, with Team Europe members France, Luxembourg, Portugal, Spain, the European Investment Bank (EIB) and the German development bank KfW, have inaugurated a modernised port on the island of Maio as part of a wider extension of port infrastructure across the archipelago aimed to boost the sustainable economic development of Cabo Verde. This port infrastructure forms an integral part of one of the strategic transport corridors in Africa the EU envisages to support. It is a clear demonstration of the sustainable investments in partner countries that the EU is scaling up under Global Gateway. The port will facilitate passenger and cargo transport along the strategic Praia–Dakar–Abidjan corridor and significantly increase the potential of the UNESCO-designated biosphere reserve island of Maio for environmentally friendly tourism and inclusive growth.
European Commissioner for International Partnerships, Jutta Urpilainen, said: “Today marks an important milestone in improving transport links to the beautiful island of Maio and its unique ecosystem. In line with Global Gateway, this strategic investment in port infrastructure and its accompanying Team Europe support to public services, including environmental conservation, enable the local community to better tap into their potential for green growth. Cabo Verde will be able to welcome increasing numbers of tourists while maintaining the highest environmental and social standards that are so necessary to ensure long-lasting benefits.”
Dried mangos are juicing up Burkina Faso’s fruit exports (Trade for Development News)
Between March and July every year, fruit trees across Burkina Faso, a landlocked country in West Africa, come alive with the delightful smells and colorful sights of mangos.
This heavenly delight is also big earthly business. Mangos account for more than half the fruit grown in the country where eight out of every 10 people live off agriculture.
The real value, however, is foreign exchange earnings from exporting the stuff to Europe, Asia, and neighboring countries. Fresh mangos are sinfully delicious but hard to transport to these export markets without losing freshness. Salvation lies in processed and dried mango products, which have been growing over the past decade.
Production of dried mango increased from 700 tons in 2014 to 3,800 tons in 2020, leading to a 50% increase in export revenue in that period. Aware of the premium on value-added exports, the government of Burkina Faso between 2014 and 2018 partnered with the Enhanced Integrated Framework (EIF) to improve the drying and certification process of dried mangos for export. The project has been key to slowly but firmly pushing the country towards modernizing its agro-processing businesses – and juicing up its exports.
Exporting dried mangos is a profitable alternative to exporting fresh ones as the quality of the latter is often compromised during transport due to poor logistics, like lack of air cargos, or high costs of refrigerated containers. Drying also reduces post-harvest losses, which means more money for producers, processors, and exporters.
Exporting dried mangos also removes barriers associated with exporting fresh produce and ensures more control over the quality of the final product that customers buy.
Political interlude seen as major trade challenge (The Point)
Permanent Secretary Lamin Dampha at the Ministry of Trade, during an interview with this medium to shed light on this allegation, said people might perceive it differently. He, however, confirmed that “the frequency of changes of leadership in the ministry” citing that nine permanent secretaries and four ministers have been appointed at the Trade Ministry in six years.
PS Dampha points out that could be something one can interpret as worrying, saying there is a need to look into that. He added that stability in the ministry is important for the private sector and it sends a positive signal to the business community and potential investors. Meanwhile, another anonymous source told this medium that the government is not transparent when it comes to things relating to importation and exportation, saying this causes the change of leadership in many public places. “How do you expect the work to go smoothly when government politicians try to interrupt the work due to their own interests? In fact, if you change a leader in an institution and bring someone who knows nothing about trade, how do you expect that person to deliver,” he quizzed.
A source informed us that due to political interlude, The Gambia loses its standing at the United States Trade Representative, after being the 184th largest goods trading partner with $47 million in total (two way) goods trade during 2019. Goods exports totalled $45 million; goods imports totalled $2 million. The U.S. goods trade surplus with The Gambia was $43 million in 2019.
African trade and integration
The regional policy dialogue convened to discuss interventions that are necessary to build sustainable agri-food systems in the Southern African Development Community (SADC) Region has come up with key recommendations on the importance of trade, policy and investment in facilitating sustainable and resilient agri-food systems.
The dialogue has recommended that SADC and national governments should strengthen efforts to dismantle barriers to trade, enhance the participation of women and youths in agricultural value chains, strengthen the functioning of national agricultural research and development services through technology and soil health and fertility to deliver a strong and improved agrifood system.
During the opening session, Honourable Thoko Didiza, Minister of Agriculture, Land Reform and Rural Development of the Republic of South Africa, said that the dialogue was appropriate as the COVID-19 pandemic and the conflict in the Black Sea had brought about health and macro-economic risks to the African continent. The global food system needed urgent intervention from the African governments, the private sector, and various stakeholders to increase investment and spending in research and development, infrastructure, improved land governance, support to private sector investments and the effectiveness of the African Continental Free Trade Agreement (AfCFTA).
The required capacity includes the science and technology institutions and policy frameworks to build resilient food systems that provide healthy diets, build wealth for all and preserve the environment. Sustainable agri-food systems transformation would require interventions on food security, nutrition and health; socio-economics; territorial development and equity; and environmental sustainability.
US$ 20.2M approved by SADC for Twelve Southern African regional projects (Construction Review)
Twelve Southern African regional projects are set to benefit from US$ 20.2M approved by the Southern African Development Community (SADC). The projects were funding, which will cater for the preparation of the projects was approved through the Project Preparation and Development Facility (PPDF). The latter is a tool used by the SADC to fund regional development. According to the regional bloc, the projects involve the energy, transport, and water sectors. They are expected to generate infrastructure investments of at least US$3 billion. Moreover, they have a huge potential to unlock business opportunities throughout the infrastructure value chain.
These opportunities include consultation services, finance, construction, and equipment supply. In addition, they involve technology and skills, and also operations and maintenance.
EAC continues to witness high cost of food amidst Russia-Ukraine war (Garowe Online)
The purchasing power across the Eastern Africa Region continues to be affected by the fallout of the conflict in Ukraine among other factors. The price of a local food basket has increased by 49 percent over the past twelve months, with Somalia, South Sudan, and Sudan continuing to record the most expensive food baskets in the region (USD 31.8, 27.3, and 26.5, respectively). Cereals and vegetable oils continued to push the cost of the food basket up, with Sudan recording a more than twofold increase in cereals prices since the conflict in Ukraine started.
A report by Reliefweb between July 2021 and July 2022, the cost of fuel went up by 62 percent, adding to economic hardship for people already struggling with high food prices.
The East African Community (EAC) on Wednesday kicked off its maiden mission to the Democratic Republic of the Congo (DRC) at a meeting with a high level government delegation in Kinshasa. The objective of the EAC mission is to enhance the understanding of DRC Government officials on the commitments in the EAC integration pillars and the Community´s governing instruments.
DRC´s Vice Prime Minister and Minister of Foreign Affairs, H.E. Christophe Lutundula Apala Pen´Apala stated: “As a member of the EAC, DRC will enact legislations to ensure effective implementation of the provisions of the Treaty establishing the East African Community.”
The Vice Prime Minister said that DRC is committed to creating a conducive business environment through enacting laws and developing policies and programmes to facilitate intra-regional trade.
In his remarks, EAC Secretary General Hon (Dr.) Peter Mathuki said that with the accession of the DRC into the Community and subsequently the deposit of the instrument of ratification, DRC was now at liberty to participate in all EAC programmes and activities.
The Secretary General said that DRC´s entry into the bloc provides EAC Partner States with access to an additional market of approximately 81 million people providing a large market for trade.
The total EAC imports from DRC in 2020 amounted to $49.2 million and the EAC exports to DRC was $584 million in the same period, with the figure expected to increase. The major EAC imports from DRC include: wood, plants, seeds, fruits, re-melting scraps of iron or steel, and natural sands while the exports to DRC include: lime and cement, iron and steel, tobacco, beverages, spirits and vinegar, animal or vegetable fats and oils, fish, wheat gluten, sugar & confectionaries, plastics, and soap among other products.
Unlocking drone potential in East Africa’s aviation (Business Daily)
East Africa is projected to be one of the fastest-growing regions on the continent. Despite this development, its infrastructure ranks behind that of southern and western Africa across a range of indicators. The current gaps in infrastructure are vast, amounting to billions of dollars annually, providing a strong impetus to seek new generational complementary solutions that leverage the field of technology and innovation enabling solutions for travel, transport, security, and supply chains.
According to a study by the East African Business Council on the costs and benefits of open skies, liberalisation between Burundi, Kenya, Uganda, Tanzania, and Rwanda could result in an additional 46,320 jobs and $202.1 million per year in GDP. There is an opportunity to innovate so that the market is open even as technology continues to grow and play a larger role across consumers.
African nations developing air transport sharing mechanism (Defence Web)
African nations are looking at developing an Air Transport Sharing Mechanism to improve the African Union’s airlift capability, and a conference to this effect was recently concluded in Botswana. The conference took place in Kasane, Botswana, from 22 to 26 August during the 5th Liaison Officer Working Group hosted by US Air Forces Africa and the Botswana Defence Force.
“The ATSM [Air Transport Sharing Mechanism] aims to create a dependable, organized, readily-available, effective and efficient air transport operations system on the continent to carry persons and cargo in support of common national and regional peace and security requirements,” said US Air Force Major James Johnson, US Air Forces in Europe and Air Forces Africa (USAFE-AFAFRICA) southern Africa regional desk officer.
USAFE-AFAFRICA reported that the ATSM goal is to enhance the African Union’s strategic lift capability to include medical evacuation, non-combatant evacuation, and humanitarian action and natural disaster support through the Africa Air Mobility Command Centre (AAMCC), a multi-national African airlift unit under the authority of the African Union.
AfCFTA should to be given more support at COP27: Afreximbank President at Egypt-ICF (Daily News Egypt)
President and Chairperson of the African Export-Import Bank (Afreximbank), Benedict Okey Oramah, emphasized that the African Continental Free Trade Area (AfCFTA) is a key solution that helps Africa strike a balance between climate action and sustainable development. Orama made his statements during his speech at the second edition of the Egypt-International Cooperation Forum (Egypt-ICF) 2022, which kicked off on Wednesday at the New Administrative Capital.
He noted that AfCFTA adjustment facility requires funding worth $8-10 billion, which will enable countries to adjust and offset significant tariff revenue losses as a result of the implementation of the continental free trade agreement.
Two months to the 27th global climate summit (COP27) in Sharm El-Sheik, Egypt, African and other global leaders have rallied in Rotterdam, to highlight the urgency of climate adaptation funding for the continent. The meetings—co-convened by the President of the African Development Bank Group Dr Akinwumi Adesina, CEO of the Global Center on Adaptation (GCA) Professor Patrick Verkooijen, and African Union Commission Chair Mousa Faki Mahamat—was unanimous about the need for concrete action and finance. Former UN Secretary General Ban Ki-moon and GCA Co-Chair said: “The world has a fever. It burns hotter and higher with every day that passes… Statistics tell us that Africa is where the fever is at its most intense and people at the most vulnerable.”
GCA Chief Executive Officer Patrick Verkooijen emphasized the disastrous impacts of climate change hitting all parts of the world. He said it is in Africa, however, that climate shocks will hit the hardest. He said Africa was resolute about its economic advancement and would not stop.
Adesina said: “The current climate financing architecture is not meeting the needs of Africa. New estimates by the African Economic Outlook of the African Development Bank show that Africa will need between 1.3 and 1.6 trillion dollars from 2020 to 2030, or $118 billion to $145 billion annually to implement its commitments to the Paris Agreement and its nationally determined contributions.”
The African Development Bank chief said the African Adaptation Acceleration Program’s upstream facility at the GCA had already helped to generate $3 billion of mainstreamed climate adaptation investments by the African Development Bank, from agriculture to energy, transport, water, and sanitation.
Representatives from across the continent gathered to share their experiences of implementing Nationally Determined Contributions (NDCs) at the just-ended Africa Climate Week. They noted that partnerships and effectiveness in measuring, reporting and verifying greenhouse gas emissions would be key to African countries hitting their various targets.
Partners of the Africa Nationally Determined Contributions (NDCs) Hub hosted a session entitled Enabling faster and efficient NDC support through advocacy and partnerships.
UNECA’s Director for Technology, Climate Change and Natural Resources Management, Mr. Jean-Paul Adams, said, “to be effective, NDCs needed to be integrated in national budgeting systems to receive funding from the national treasury.” Looking ahead to COP27 Adams said that Africa’s priorities should include a just and equitable transition, finance and resource mobilization through such instruments as debt for climate swaps.
The Deputy Director of the United Nations Environment Programme (UNEP) Africa Office, Dr. Richard Munang, said there was no one size fits all model. African countries should rather consider their own individual contexts and prioritize sectors in which they enjoy a comparative advantage. He also stressed the importance of tapping Africa’s youth dividend.
IMF Managing Director’s Remarks at the Global Center on Adaptation’s Africa Adaptation Summit (IMF)
The future of payments in Africa (McKinsey)
Human commerce has always sought more efficient mediums of exchange, and now this innovation is accelerating. The 21st century has witnessed dramatic shifts in how people pay for goods and services, with electronic payments increasingly displacing cash and, more recently, cryptocurrency and digital currencies emerging as alternatives to traditional conceptions of money.
Africa has kept pace with—and in some cases even led—this innovation, and an influx of new investments and regulatory shifts continues to shape the e-payments landscape on the continent. Although cash is still king in Africa, a McKinsey survey suggests that its supremacy is likely to be challenged in the coming years as e-payments gain momentum. With banks and nonbank players alike innovating to reduce friction in domestic and cross-border payments and deliver much-needed new solutions to consumers and businesses, Africa’s domestic e-payments market is expected to see revenues grow by approximately 20 percent per year, reaching around $40 billion by 2025, compared with about $200 billion in Latin America. By comparison, global payments revenue is projected to grow at 7 percent annually over the same period.
AfDB Enhances Private Sector Assistance to Central African Region (Liberian Daily Observer)
Following the announcement of an additional $5 billion to the African Development Bank’s Enhanced Private Sector Assistance (EPSA) program from the government of Japan, the Bank’s Central Africa Regional Development and Business Delivery Office is seeking to engage with private sector organizations from the region with economically viable projects for investment.
The announcement, made in Tunis during the Eighth Tokyo International Conference on African Development (TICAD8), comprises $4 billion under EPSA 5 (2023-2025), and is complemented by $1 billion for a new special window to support African countries that undertake reforms to foster debt transparency and sustainability. EPSA 5 aims to address four key priorities: power, connectivity, health and agriculture, and nutrition.
Global economy
How digital connectivity facilitates inclusive global trade (UNCTAD)
UNCTAD has released a new compendium featuring the experiences of 22 countries participating in its Automated System for Customs Data (ASYCUDA) programme. ASYCUDA – UNCTAD’s largest technical assistance programme – supports customs authorities in over 100 countries to expedite the clearance of goods and ease trade. The report, the third edition in a series of ASYCUDA case studies, highlights the programme’s success in enabling digital connectivity for inclusive trade. See the 2020 and 2019 editions. “The COVID-19 pandemic has intensified the digitization of trade processes and procedures,” said Shamika N. Sirimanne, director of technology and logistics at UNCTAD. “Country experiences during these trying times illustrate how ASYCUDA has helped user countries to grow their international trading activities as they reignite their economies,” Ms. Sirimanne added.
To harmonize and facilitate the integration and exchange of trade information, ASYCUDA is piloting ASYHUB, an open standardized platform for processing and integrating data between the programme and third-party systems. This solution will offer a smart framework to efficiently interconnect government systems and applications.
Digital trade spurs growth in Belt and Road partner countries (Xinhua)
The total added value of the digital economy in 47 major countries around the world hit 38.1 trillion U.S. dollars in 2021, with the scale of China’s digital economy hitting 7.1 trillion dollars, ranking second globally, according to a white paper on the global digital economy released in July by the China Academy of Information and Communications Technology.
“Digital trade, as an important component of the digital economy, is an important link connecting domestic and international digital markets,” said Vice Minister of Commerce Sheng Qiuping.
Proposed by China in 2013, the Belt and Road Initiative (BRI) envisions trade and infrastructure networks connecting Asia with Europe and Africa along the ancient Silk Road routes. To keep up with the digital transformation trends, the Digital Silk Road was launched. It is the technology dimension of the BRI, which extends from the ocean floor to outer space enabling artificial intelligence, big data applications and other strategic internet solutions.
As of July, China had established the Digital Silk Road cooperation mechanism with 16 countries, advanced the Silk Road E-commerce bilateral cooperation mechanism with 23 countries, and built 34 cross-border land cables and several international submarine cables with neighboring countries.
“The COVID-19 epidemic led to unprecedented supply chain disruptions,” said Zhang Xiangchen, deputy director-general of the World Trade Organization (WTO), at the just concluded 2022 China International Fair for Trade in Services (CIFTIS). “However, it has also become a catalyst for businesses worldwide to significantly accelerate the supply of services through digital networks,” Zhang said. He noted that digitalization is fostering a new circle of innovation in services, which presents great opportunities for economic growth. “Global trade is constantly shaped and reshaped by technological innovations.”
China’s BRI is not just a debt trap but a trade trap too (Moneycontrol)
Opportunity for developed world to woo recipients of Chinese funds through active investments in productive value chains in these countries and make them a core part of the world economic engine
While speaking at the Forum on China-Africa Cooperation in mid-August, China’s foreign minister Wang Yi had a surprise. He announced that his country, by far the largest creditor to Africa, would forgive 23 interest-free loans to 17 African countries that had reached maturity but were not repaid.
Balance between economy, environment key to achieving prosperity (Antara News)
National Development Planning Minister and Head of the National Development Planning Agency Suharso Monoarfa highlighted the importance of a balance between social-economic policies and the environment for achieving a resilient and prosperous society. “The balance between social-economic policies and the environment is the key to realizing a resilient and prosperous economy in the future,” Monoarfa stated at the G20 Development Ministerial Meeting (DMM) observed by online means here, Wednesday. The G20 Development Ministerial Meeting, organized under Indonesia’s G20 Presidency, aims to discuss development issues in developing countries, least developed countries, and island countries.
The global economy, including economies of G20 countries, is facing various risks, such as an economic decline, energy crisis, and supply chain disruption, the minister stated.
“Increasing commodity prices also means greater risk on economic recovery decline,” Monoarfa stated. The minister said that apart from economic risks, the global community is also facing risks in terms of the social aspect that included a decline in the residents’ welfare and an increasing poverty rate.
Climate Finance: $31.7 billion in fiscal year 2022 (World Bank)
Financing focuses on helping countries reduce GHG emissions and adapt to mounting impacts of climate change. This is a 19% increase from the $26.6 billion all-time high in financing reached in the previous fiscal year. The Bank Group continues to be the largest multilateral financier of climate action in developing countries. “In our last fiscal year ending June 2022, we provided a record $31.7 billion to countries to identify and enable high-priority climate-related projects as part of their development plans.” said David Malpass, President of the World Bank Group. “We will continue providing solutions to pool funding from the global community for impactful and scalable projects that reduce GHG emissions, improve resilience, and enable the private sector.”
As part of its ongoing effort to help countries integrate climate and development objectives, the Bank Group recently launched a number of Country Climate and Development Reports (CCDRs). CCDRs are a new core diagnostic to help countries prioritize the most impactful actions that can reduce GHG emissions and boost adaptation. A summary of the preliminary findings of these reports will be published in coming months to foster action-oriented discussion in the global community.
Related News
tralac Daily News
Local news
SA Government concerned about GDP figures (SAnews)
Minister in the Presidency, Mondli Gungubele, has expressed concern at the results of the Gross Domestic Product for quarter two, which show that the GDP decreased by 0.7% after two consecutive quarters of positive growth. “As a country, we have experienced slow growth and rising unemployment. Nonetheless, in the midst of these difficulties, our general public and economy has shown to be strong,” Gungubele said on Tuesday.
“As indicated by Stats SA, manufacturing is the largest industry in KwaZulu-Natal and the damage caused to factories and plants, and disruptions to logistics and supply chains, decreased national manufacturing output by 5.9%. “It was also a heightened period during which the globe experienced slow economic growth. South Africa, like many countries around the world, experienced increases in the prices of food, housing and fuel, which were events beyond the control of government,” the statement issued by the Government Communication and Information System (GCIS) said. Although the GDP contracted, Gungubele noted that there are signs that the economy is on the road to recovery.
Botswana, S/Africa vegetable trade war escalates (WeekendPost)
The looming trade dispute between Botswana and South Africa has escalated with some sections of that country’s government weighing a number of options. South Africa through the Western Cape department has said that it intends to hold talks with role players in private sector within Botswana’s agriculture industry as part of interventions on import bans by Botswana. Initially, it was only the South African private sector which has spoken out about the decision by Botswana and Namibia to close their borders to some of vegetable imports from South Africa.
Daniel Johnson, the spokesperson for Western Cape Provincial Minister for Agriculture, Ivan Meyer, indicated that better coordination and collaboration can speed up the process of resolving Botswana and Namibia’s ban on South African vegetable exports. “For this reason, the participation of key role players from different spheres of government dealing with market access issues is essential to speedily identify and resolve market access challenges,” he said.
Urging for Namibia and Botswana to reopen their borders to allow the importation of fruits and vegetables, Johnson said while trade diplomacy is facilitated “at a national government level with the partner country, leveraging the relationships that the Western Cape Department of Agriculture (WCDoA) has established through its commodity approach model could streamline processes to speed up discussion among role players.”
“Informed by the commodity approach model, the WCDoA has signed agreements with various industries, including the vegetable industry. These agreements aim to ensure private sector participation in developing and advancing the agricultural sector and should be leveraged for our agricultural exporters’ benefit,” said Johnson.
Namibia’s trade deficit up in July (Xinhua)
Namibia’s trade deficit widened to 4.3 billion Namibia dollars (about 288 million U.S. dollars) in July, up from 2.5 billion Namibia dollars recorded in the previous month, according to the country’s latest trade statistics released Tuesday. In the year that ended in July, Namibia maintained an average trade deficit of 3.3 billion Namibia dollars, according to the Namibia Statistics Agency (NSA).
“For July 2022, Namibia’s exports earnings were down by 14.8 percent on a monthly basis, while the imports bill was up by 4.5 percent,” NSA Statistician-General Alex Shimuafeni said, adding that the deficit was reflected mostly in the petroleum oils import bill, followed by copper ores and concentrates, and ores and concentrates of precious metal.
Costly fuel imports increase half year trade deficit to Sh814 billion (Business Daily)
Kenya’s trade deficit for the first six months of the year widened by nearly a quarter on elevated expenditure on fuel and factory supplies from abroad, exerting pressure on the shilling and hurting job opportunities. The trade deficit – the gap between merchandise imports and exports – deepened to Sh814.02 billion from Sh620.82 billion in the prior year amid persistent disruptions in global supply chains that have increased cost of importing goods. The 23.73 percent, or Sh193.2 billion, expansion in the trade gap came at a time importers battled runaway shipping costs amid a shortage of dollars due to a mismatch in supply and demand.
Kenya has over the years struggled to narrow its goods trade deficit partly due to reliance on traditional farm produce exports such as tea, horticulture and coffee which are largely sold raw, fetching relatively lower earnings. Betty Maina, the Industrialisation and Trade Cabinet Secretary, says most farmers export produce raw due higher taxes slapped on semi-processed or processed products in destination markets, largely in Europe. “The biggest challenge around value addition is tariff escalation where when you sell in raw form you get zero tariff but when you process, additional duties emerge,” Ms Maina told the Business Daily.
Sugarcane farmers tell William Ruto to revive taskforce report (Business Daily)
Sugarcane farmers have now called on President-elect William Ruto to prioritise the sub-sector and resuscitate the industry which is the backbone of Western Kenya’s economy. Despite the generation of various recommendations that could jumpstart the sector, they noted that lack of implementation continues to stall the process. Citing the sugar taskforce report and the Sugar Bill, Kenya Association of Sugarcane and Allied Products (KASAP) chairman Charles Atiang’ Atiang’ called on Dr Ruto to urgently convene a stakeholders’ meeting to kick start the initiatives which he noted are gathering dust. “For the sugar industry to realise meaningful changes, we need to develop a legal framework to streamline the industry which is currently on its knees,” he said.
Mr Atiang’ noted that the Sugar Bill 2022 which was sponsored by former Kanduyi MP Wafula Wamunyinyi hangs in the balance after his bid to recapture his seat failed. “Unfortunately, the bill which sought to ensure that farmers get maximum returns from their sweat got stuck at the Senate,” he said. Among others, the bill proposed the establishment of the Kenya Sugar Board to regulate, promote and develop the sugar sub-sector which is currently regulated by the Agriculture and Food Authority (AFA) under the Crops Act.
Global economists upgrade Kenya’s growth outlook after poll (Business Daily)
Global economists have marginally upgraded Kenya’s growth outlook for this year following the peaceful conclusion of a closely-contested presidential vote despite soaring cost of living and mounting public debt stress. A consensus growth outlook from 14 world-leading banks, consultancies and think tanks shows economic activities could expand 5.5 percent this year, a 0.1 percentage-point rise over the month before the General Elections.
“Despite softening from 2021, GDP growth will be amongst the strongest in the region this year following several upward revisions from our panelists,” wrote analysts at Barcelona-based FocusEconomics, who compiled the outlook report between August 16 and 21. “The slowdown [from last year’s] will be partly driven by tighter monetary policy, a weaker shilling and high inflation; all tempering demand. Additionally, extreme weather events and a higher risk of debt distress are key factors to watch.”
New maize shock as Tanzania freezes exports permits for Kenyan traders (The East African)
Tanzania has frozen the issuance of new maize export permits for Kenyan traders in what could worsen the shortage of the product, which has driven prices of flour to historic highs. Several millers and animal feed manufacturers in Kenya told Business Daily the neighbouring country stopped issuing permits last week, tightening the supply of the staple locally. “We have been unable to get maize from Tanzania since last week after the country stopped issuing export permits to traders with the cutting off of stocks from Tanzania expected to push up the cost of flour,” said Ken Nyaga, the chairperson of the United Grain Millers Association.
Tanzania has for the last two years become a key source market for maize to bridge deficits especially after the two countries mended their trade ties with the change of regime last year following the death of former President John Magufuli.
The Kenya Bureau of Standards (Kebs) said the maize coming in through the Namanga border has significantly declined, confirming that imports into the country at that point is originating from Zambia. “We have witnessed a significant decline in maize coming in from Tanzania; on average we are now getting 10 trucks from a high of 80 trucks previously,” a Kebs official at the Namanga border said.
The move leaves Zambia as the only key source market for the produce to bridge the local deficit as most stocks from Uganda— also a key source — is now heading to South Sudan owing to high prices in Juba.
Counting Uganda’s gains and losses from AGOA (Monitor)
Following the enactment of the African Growth and Opportunity Act (AGOA) some 22 years ago, the American market has been flung open for Uganda’s Micro, Small and Medium Enterprises to take full advantage of. Going by the Ministry of Trade and AGOA country response office statistics, the last three financial years provide a solid case for the extension of the initiative falling under the US Trade Act (legislation) and at the same time give a proper assessment of what is in store for this programme if efforts to get it right are not only consolidated, but harnessed as well.
Over the last three years, most part of which, the country in particular and the globe in general, were under key and lock, resulting from the Covid-19 pandemic and the resultant uncertainties. As other regional countries were finding their feet, Uganda was feeding the US market with her coffee, crafts, vanilla, chocolate, tea, textile and dried fruits—all under the AGOA initiative.
A year before the pandemic (2018/19), thanks to AGOA initiative, Uganda’s exports to US were valued at $1 million (nearly Shs4 billlion). In 2019/2020, the exports grew to $3.4 milion (about Shss13 billion) and by close of 2021, they rose to $5.1million (about Shs20 billlion).With that growth, although still peanut compared to Uganda’s trade with European Union (EU) and the United Kingdom (UK), the signs according to AGOA exporters and government technocrats, seem promising enough to make a case for the renewal of the legislation beyond 2025, about two and a half years away.
Angola deposits two legal instruments in the AU (ANGOP)
Angola deposited, on Monday, in the African Union (AU) headquarters, the letter of adhesion to the Agreement on the Constitution of the African Trade Insurance Agency (ATI) and the instrument of ratification of the African Charter on Statistics.
Affiliation with ATI will allow Angola to attract long-term financing at competitive rates, while Angolan entrepreneurs will more easily benefit from credit insurance, political risk, coverage against insolvency and investment. The African Statistics Charter, which was adopted in February 2009 and entered into force in February 2015, is intended to serve as a policy framework for the development of statistics in Africa, in order to ensure better quality and comparability of the statistics needed to monitor the process of economic and social integration on the continent.
Nigeria pins hopes on port hub role (China Daily)
Nigeria is closing in on its ambitions to get on the global map for shipping services with a deep-sea port that will serve as the main transshipment hub for West Africa. Construction of the Lekki Deep Seaport, in Lagos state, is more than 95 percent complete, and is expected to begin operating as soon as the end of the year. The $1.5 billion port, which is being built with Chinese backing, will be at the heart of the Lagos Free Trade Zone.
Africa’s most populous country now relies on two old ports that are constantly congested and their shallow harbors restrict the type of vessels that can dock there. Those constraints made clear the need for the Lekki Deep Seaport, with financing from China Development Bank. Work got underway in 2017.
As the first deep-sea port in Nigeria, the facility will significantly increase the goods handling capacity of the country and boost its economic development, according to China Harbour Engineering Company, the contractor for the project.
Nigeria To Establish Special Economic Zone For Bitcoin, Crypto (Bitcoin Magazine)
Nigeria is seeking to create the first economic free zone for bitcoin and cryptocurrency in West Africa through the Nigeria Export Processing Zones Authority (NEPZA), per a press release. NEPZA is in discussions with Binance, one of the leading cryptocurrency exchanges, as well as Talent City which specializes in building special economic zones. Our goal is to engender a flourishing virtual free zones to take advantage of a near trillion dollar virtual economy in blockchains and digital economy,” said Adesoji Adesugba, NEPZA’s managing director.
Tunisia: Pressing reform needed to help stabilize public finances (World Bank)
The slow economic recovery from COVID-19 and a delay in carrying out key reforms, including of subsidies, is likely to further strain Tunisia’s public finances and deepen budget and trade deficits, according to the World Bank’s latest Tunisia Economic Monitor.
Issued in French under the title Gérer la crise en temps d’incertitudes (Managing the crisis in times of uncertainty), the report forecasts economic growth of 2.7% in 2022, largely due to the post-COVID recovery of tourism and trade, plus the solid performance of the mining and light manufacturing sectors. This growth rate is slightly lower than earlier World Bank forecasts, a reflection of the impact of the war in Ukraine. As a result, the economy is expected in 2022 to remain well below the pre-pandemic period.
“Just as its economy started to recover from the COVID-19 crisis, Tunisia faced the double challenge of rising commodity prices and the war in Ukraine, which has put huge pressure on global wheat and energy supplies.” said Alexandre Arrobbio, World Bank Country Manager for Tunisia.
Traders hail Gambia’s negotiation to trade under AfCFTA (The Point)
The general objective of the AfCFTA include creating a liberalised market for goods and services through successive rounds of negotiations, contribute to the movement of capital and natural persons and facilitate investments by building on the initiatives and developments in the State Parties and the Regional Economic Communities (RECs), lay the foundation for a Continental Customs Union at a later stage; and to promote and attain sustainable and inclusive socio-economic development, gender equality and structural transformation of the State Parties.
Lamin Dampha, the permanent secretary at the Ministry of Trade, in an interview explained that the reasons why Gambia is yet to trade under the AfCFTA, saying there are so many unfinished businesses.
“It should have started in January 2020 but unfortunately, because of Covid-19, that could not materialise. Covid-19 has slowed down the negotiation process but everything is kicking up now. Negotiations are ongoing and lots of progress has been registered. The Gambia is among the countries that are actively participating in the negotiation and I have been leading it from 2017 to 2020. We have been contributing a lot in terms of reshaping the rules that are coming out and making sure we have an outcome that is favourable to The Gambia.”
African trade and integration
African gold producers grapple with illicit pre-financing networks (Global Trade Review)
Small-scale gold producers in East Africa are dependent on informal or criminal pre-financing structures, with illicit gold likely ending up in international trading markets, researchers warn.
An estimated 20% of the world’s gold in circulation is derived from artisanal and small-scale gold mining (ASGM), but much of this trade has its roots in networks linked to organised crime and political corruption, according to fresh research by Themis, a financial crime intelligence provider.
With legitimate importers and financial institutions often unwilling or unable to provide financial support to ASGM operations, miners are increasingly turning to illicit networks to provide pre-financing to cover machinery and other costs. As a result, gold linked to armed groups, exploitation, corruption or financial crime is likely being refined and re-sold on the international market, with its origins impossible to trace.
‘Beitbridge transformation boon for regional trade’ (The Herald)
The ongoing transformation of the Beitbridge Border Post at a cost of US$300 million will go a long way in cementing Zimbabwe’s position as a vital player in regional and international trade, Minister of Information, Publicity and Broadcasting Services, Monica Mutsvangwa has said.
She commended the Government for automating services and separating traffic which has helped address efficiency challenges that had become perennial at the country’s and SADC’s busiest inland port.
The border is being upgraded in three phases which include, the freight terminal and ICT facilities (Phase 1), bus terminal, and the private motor vehicles and pedestrian terminal which fall under phases 2 and 3 respectively. “Projects like the Beitbridge Border Modernisation we are seeing here is cementing our position as a country in terms of trade facilitation,” said Minister Mutsvangwa.
The organisation’s general manager, Mr Nqobile Ncube said under the current set up they are able to clear 60 percent of commercial cargo arriving at Beitbridge.
China scraps tariffs and steps up the charm offensive in Africa (DW)
China has removed tariffs on 98% of taxable items originating from nine of Africa’s least-developed nations. The new tariff policy, which came into force on September 1, applies to agricultural and mineral imports from the Central African Republic (CAR), Chad, Djibouti, Eritrea, Guinea, Mozambique, Rwanda, Sudan and Togo. Several Asian countries have also been included in the scheme. It follows Chinese President Xi Jinping’s announcement at the China-Africa summit in November 2021 that steps would be taken to increase the import of agricultural products from Africa.
Xi said at the time that the aim was to boost these imports from the continent to $300 (€302 billion) over the next three years, eventually reaching $300 billion a year by 2035. Africa, which still primarily exports raw materials to China, only accounts for a small part of China’s total imports.
AGRF 2022: Current Food Prices A Wake-Up Call For Africa To Take Bold Steps - PM Ngirente (KT Press)
The Prime Minister Dr. Edouard Ngirente says the increasing food prices on the African continent should be a wake-up call for African countries to take bold actions by investing in strengthening food systems. The Premier made the call on Tuesday while officially opening the African Green Revolution Forum (AGRF) Summit 2022 which opened in Kigali with the aim of driving agricultural transformation and strengthening food systems on the continent.
“While most countries are recovering from this global shock, our ability to get together more than ever is key in advancing food systems to ensure food security for our people”. “The current high food prices we are experiencing nowadays, makes it difficult for families and communities to meet their own food needs.” “This calls for bold measures to improve our capabilities for sustainable food production and supply to markets. What we do now impacts tomorrow’s results,” Dr. Ngirente said.
“Increasing investment in strategic areas of agricultural value chain such as reduction of post-harvest losses, which are estimated between 30% and 40% of total production in developing countries, use of fertilizers and improved seeds, adoption of smart agriculture as well as de-risking the sector.
African Development Bank sponsor of African Green Revolution Forum (AGRF) (AfDB)
The African Development Bank returns as a top-tier partner of the African Green Revolution Forum (AGRF) – Africa’s largest agriculture conference – taking place in Kigali, Rwanda, from 6-9 September 2022.
On Monday, the Bank kicked off its AGRF 2022 activities by co-organizing a pre-forum side event focused on the African Emergency Food Production Facility at the Kigali Convention Center. The Bank’s $1.5 billion Facility is an unprecedented, comprehensive initiative to support smallholder farmers filling a food shortfall of at least 30 million metric tons of food - especially wheat, maize, and soybeans imported from Russia and Ukraine. Bank Vice President for Agriculture, Human and Social Development, Dr. Beth Dunford, will deliver opening remarks at the side event, speaking to how the new Facility will provide 20 million African smallholder farmers with certified seeds, increased access to agricultural fertilizers, as well as help create an enabling environment for investment in building Africa’s food systems.
The government of Rwanda and the AGRF Partners Group are hosting AGRF 2022, organized under the theme, Grow, Nourish, Reward. Bold Actions for Resilient Food Systems.
“Russia’s war in Ukraine, recovery from Covid-19’s economic impacts and the realities of climate change are complicating efforts to build resilient food systems in Africa. Coming to the continent’s premiere forum related to agriculture with solutions – like the Bank’s African Emergency Food Production Facility – affords opportunity to establish new partnerships with a shared vision to feed Africa,” said Dunford.
UN seeks uniform standards for food and agricultural products in Africa (Independent)
Delegates attending the opening of the Africa Regional Food Safety conference in Kampala are pushing for formulation of uniform standards for food and agricultural products meant for export in the region and globally. Speaking at the meeting which will be on until the 13th of September, Dr. Bayo Fatunmbi, the Acting World Health Organisation Representative to Uganda said they recently did an assessment of the food safety situation in the country and generated evidence that they will use to evaluate the gaps that can be filled in the country to be able to match with globally acceptable standards.
The meeting gathered delegates from forty nine countries that are members of the World Health Organization and Food and Agriculture organization coordinating Committee for Africa. Speakers expressed concern about aflatoxicin contamination that has been associated with products such as maize, groundnuts and beans from Uganda.
Meanwhile, Uganda is the new coordinator for the regional committee and Ebiru says their bigger aim is to have products from East Africa gain more access to the bigger African Continental Free Trade area.
New funding to help Africa adapt to climate change announced (Engineering News)
New funding, totalling $55-million, to help African countries to adapt to the effects of climate change, was announced by four West European countries at the Africa Adaptation Summit on Tuesday. The summit, being held in Rotterdam in the Netherlands, was organised by the Global Centre on Adaptation (GCA) and was attended by leading figures in governments, businesses and the United Nations. In order of the size of their contributions, the donor countries concerned were the UK, allocating $23-million, Norway, assigning $15-million, France, with $10-million, and Denmark, with $7-million. The GCA expected that this State funding would allow it to mobilise a total of up to $5-billion to fund climate adaptation projects across the continent.
The world needs Africa’s green hydrogen to decarbonise, conference delegates told (Engineering News)
The world cannot decarbonise without Africa’s production of green hydrogen, hydrogen fuel cell company Hypowa CEO and trade association African Hydrogen Partnership SG and cofounder Siegfried Huegemann has said. “It is just not possible,” he said during the second yearly Hydrogen Economy Discussion conference, in Johannesburg, on September 6.
Global economy
Supply Chain Latest: Risks to the Outlook for Global Trade (Bloomberg)
WTO Director-General Ngozi Okonjo-Iweala said the following combination of trade disruptions will continue to cast a pall on the global economic recovery: Russia’s war with Ukraine is fueling an escalating crisis in global energy and food markets. Bottlenecks continue to plague shipping routes and the line of container vessels waiting outside Germany’s North Sea ports has increased in recent weeks. Meanwhile, China’s “Covid Zero” approach to combating pandemic continues to shut down some of the world’s largest cities, ports and manufacturing hubs. And this summer, extreme weather events demonstrated the devastating impact that climate change can have on supply chains in many of the world’s largest economies.
“The outlook is not promising,” Okonjo-Iweala told Bloomberg News in an interview on the sidelines of the Africa Adaptation Summit in Rotterdam. “We are in a risky environment. We are still in multiple crises and exogenous shocks.”
Digitalization as a driver of structural transformation in African LDCs (UNCTAD)
Despite the challenging conditions to enhance the use of technology for many African LDCs, some notable progress is being made across the continent. 2021 was a record year for tech startups in Africa, with nearly 2.15 billion USD in investment capital directed to the sector. This amounts to a 206% increase over 2020 investment figures according to data from the research group Disrupt Africa’s African Tech Startups Funding Report.
FinTech enterprises – financial firms that leverage digital technologies and increase digitalization to provide financial products and services – received nearly half of this injection, with 1.04 billion USD. Moreover, diversification has been the trend in the African tech ecosystem over the past 7 years, with new firms specializing in digital payment systems, crowdfunding, peer-to-peer consumer financing, peer-to-peer business lending and invoice trading entering the market. The African tech startup ecosystem is also growing, as new firms broaden the market to include specialized services notably in FinTech, AgriTech, and HealthTech.
The challenge of financial inclusion and digital financial inclusion even more so, remains a major hurdle to development in African LDCs. This is true for the financial services available in the world’s 46 LDCs, and particularly true for the 33 which are in sub-Saharan Africa. Economic development is almost impossible without financial inclusion, and Africa is lagging behind other continents in terms of financial inclusion. For the continent, financial inclusion is largely synonymous with sending and receiving mobile money, accepting payments, agency banking and remittance payments, among other transactions. There is a need for a well-functioning financial infrastructure in Africa and the LDCs that empowers individuals and businesses to engage more actively in the economy.
For emerging technology firms, careful consideration should also be paid to financial assistance in the form of debt versus equity investments. For small, knowledge-intensive firms to grow, tailored and alternative financing mechanisms are needed, such as venture capital and business angels funding. These innovative funding models are increasingly emerging outside the traditional banking system through the use of Internet platforms or websites to connect businesses in need with investors.
BRICS urged to work collectively in global food, fuel crisis (SAnews)
The Speaker of the National Assembly, Nosiviwe Mapisa-Nqakula, has emphasised the need for a collective solution from the Brazil, Russia, India, China and South Africa (BRICS) bloc to mitigate the global food, fuel and financial crisis. “Food security and nutrition of our vulnerable populations are under threat, and legislatures of all BRICS nations, in particular, occupy a unique place to foster cooperation and people-people relations through public diplomacy, where there could be strategic direction of multilateralism and mutual development,” Mapisa-Nqakula said. Mapisa-Nqakula was speaking at the 8th BRICS Parliamentary Forum (BRICS PF) virtual meeting held on Tuesday.
The Speaker commended the 14th BRICS Summit Strategy on Food and Security Cooperation, which is aimed at stabilising global food production and contributing positively to global food security infrastructure.
Putin calls for review of Ukraine grain deal, accuses West of deception (Reuters)
President Vladimir Putin said on Wednesday he wanted to discuss reopening a U.N.-brokered deal that allows Ukraine to export its grain via the Black Sea after accusing Kyiv and the West of using it to deceive developing countries and Russia.
Putin’s criticism, which alleged that the deal was delivering grain, fertiliser and other foodstuffs to the European Union and Turkey at the expense of poor countries, is likely to raise fears that the pact could unravel if it cannot be successfully renegotiated.
The agreement, facilitated by the United Nations and Turkey in July, created a protected export corridor via the Black Sea for Ukrainian grain after Kyiv lost access to its main export route when Russia attacked Ukraine via land, air and sea. The agreement, designed to help ease global food prices by increasing supplies of grain and oilseeds, has been the only diplomatic breakthrough between Moscow and Kyiv in more than six months of war. Moscow said at the time that one of the main reasons it signed the deal was because it wanted to help developing countries stave off food shortages.
But Putin said on Wednesday that Ukraine and the West were not honouring its terms and that most of the grain was going to the EU, not to poorer countries, something the Russian leader said would have to change if what he called an “unprecedented humanitarian catastrophe” was to be averted.
EU, China trade barbs over failed G20 climate talks (Reuters)
The European Union and China are questioning each other’s commitment to fighting climate change, following the failure of climate talks by the Group of 20 (G20) last week. At the end of last week’s negotiations in Bali, Indonesia, the 20 governments failed to agree a joint communique on climate change. Diplomatic sources had said some countries, including China, were unhappy with language that had already been agreed and enshrined in past deals. The EU’s climate change chief on Monday accused “the biggest emitter on this planet” – a reference to China – of attempting to backtrack on the Glasgow Climate Pact, which capped two weeks of U.N. negotiations in November.
“Some of the very, very big players on this planet are trying to roll back from what they had agreed in Glasgow,” Frans Timmermans told a meeting in Rotterdam on climate adaptation in Africa. “And some of them, even the biggest emitter on this planet, try and hide behind developing countries in using arguments that I think, at some point, are no longer viable,” said Timmermans, who is executive vice president of the European Commission.
“As a developing country itself, China has always stood by the vast number of developing countries and firmly safeguarded their common interests,” a spokesperson from the Chinese ministry said. The failure by rich nations to deliver promised climate finance has raised tensions in global climate negotiations. The 27-country EU is the biggest provider of climate finance, according to OECD data.
Related News
tralac Daily News
Local news
South African GDP declines by 0.7% (SAnews)
After two consecutive quarters of positive growth, the country’s real gross domestic product (GDP) dropped by 0.7%1 in the second quarter of 2022, Statistics South Africa (Stats SA) said on Tuesday. “The devastating floods in KwaZulu-Natal and load shedding contributed to the decline, weakening an already fragile national economy that had just recovered to pre-pandemic levels,” Stats SA explained. According to the national statistical service, manufacturing had the biggest drag on GDP due to flooding, which hurt several industries.
Impressive agriculture export earnings in Q2 2002 despite trade challenges (Farmers Review)
The latest trade data for the second quarter 2022 showed another stellar performance from the agriculture sector with a 5% quarter-on-quarter jump in export earnings to the tune of US$3.4 billion. An indeed impressive performance despite the earlier trade related challenges from the Foot-and-mouth Disease-induced halt in wool exports, to global logistical issues that curtailed citrus volumes. The stellar export earnings and subsequently an agriculture trade surplus was underpinned by robust export demand coupled with strong commodity prices. Maize seems to have made a structural break in export trends with volumes way above the historical levels.
The implication for producers is that higher earnings will help them navigate the current high-cost environment and further make the necessary production expansions and necessary replenishment of equipment and machinery.
South Africa’s New Energy Vehicle Roadmap to be production-led, Patel confirms (Engineering News)
Trade, Industry and Competition Minister Ebrahim Patel insists that South Africa’s New Energy Vehicle (NEV) Roadmap is taking shape amid warnings that, absent urgent government decisions on the future support framework, the domestic automotive manufacturing sector is at serious risk. He has also indicated that the NEV support framework would seek to use and build on the architecture in place under the second phase of the Automotive Production and Development Programme (APDP2) and would be production- rather than consumption-led.
In a presentation to the Presidential Climate Commission, Patel released details of what he described as a roadmap “working document”, which was premised on there being a “compelling” case for South Africa to make the strategic shift to NEVs. That conclusion was reached following a cost-benefit analysis, showing that it would be more advantageous to transition South Africa’s manufacturing focus away from internal combustion engines (ICEs) to NEVs than to seek to capture a larger slice of the remaining ICE markets as international vehicle manufacturers began upscaling their NEV strategies.
Patel also reported that government would opt for a production-led model, rather than the consumption-led strategy advocated by various industry stakeholders, whereby growth in domestic demand, supported by lower tariff barriers, triggered investment. “Our approach is led by a focus on the ‘at-risk export’ markets. “Let’s get production of EVs right, export to those markets where there is both the spending power and the regulatory incentives to encourage consumption. “And then off the back of bringing down the prices through what we have been able to achieve through export runs, sell an increasing quantity in the domestic market and, at an appropriate point, look at incentives that will get motorists to shift to EV consumption.”
DRC now third largest mover of cargo at Mombasa port (The Standard)
The Democratic Republic of Congo (DRC) is now the third largest market for the port of Mombasa with a reported market share of 8.2 per cent, Kenya Ports Authority (KPA) has said. To cement its position, Lignes Maritimes Congolaises - a DRC government-owned shipping line, began operations in June this year, becoming the latest entrant at Kenya’s biggest port. “With the formal admission of the DRC to the East African Community (EAC), more private and public organisations from the Central Africa country are setting up businesses in the country,” KPA noted in an update.
Uganda remains a key trade partner for Kenya with most of its exports and imports passing through Mombasa. Meanwhile, EAC Secretary General Peter Mathuki is set to lead a delegation of the heads of the regional bloc organs and institutions and eminent regional business leaders to the DRC from September 9. A statement from the regional bloc secretariat said the maiden mission to Kinshasa aims at enhancing awareness among DRC government officials on the existing EAC instruments, creating trade synergies and exploring and building business partnerships and immediate linkages for business associations.
China fish imports hit Sh2bn, controls 83pc of market (Business Daily)
The value of fish imported from China grew by 25 per cent to hit a historic high of Sh2 billion last year amid rising disquiet from local traders who have been edged out the market by the cheaper supplies. Data from the State Department of Fisheries seen by the Business Daily shows that Kenya shipped in 14.8 million kilogrammes of the delicacy from China last year, valued at Sh2 billion, up from Sh1.5 billion in the previous period. This has increased China’s market share from 70 per cent in 2020 to 83 per cent, as the Asian nation squeezed out South Korea, Thailand, Tanzania and Uganda from top source markets in the fight for the Kenyan consumer.
China, which is already Kenya’s biggest source of imports for household goods and electronics, is racing to bag a larger share of food exports into the continent including rice and manufactured edible products. In total Kenya imported fish worth Sh2.47 billion last year from the 19 sampled countries, a 10 per cent jump from Sh2.2 billion in 2020, to bridge the growing deficit due to dwindling stocks from major domestic sources such as Lake Victoria. Other source markets were Norway (Sh96 million), Tanzania (Sh92 million), India (Sh78 million) and Uganda (Sh57 million).
A look at new tax incentives to boost revenue collections (The New Times)
Vehicles transporting goods with gross weight exceeding five tonnes but not exceeding 20 tonnes will pay an import duty rate of 10 per cent instead of 25 per cent.
The government projects to spend an estimated Rwf4.6 trillion in the fiscal year 2022/2023, with expenditures expected to rise by Rwf217.8 billion. The government mobilises funds through different means including taxes, loans and grants. Another revenue stream is from non-tax collections such as visa charges, traffic fines and licenses. For this fiscal year, it opted to make some tax policy changes expected to boost revenue collections and support businesses. Incentives to some strategic sectors are expected to promote made in Rwanda products and to boost the economy.
Tighten tax on international trade – Government advised (Myjoyonline)
The Executive Secretary of the African Tax Administration Forum, Logan Wort, is pressing on African governments to tighten tax on international trade and increase investments in digital tax collection systems. According to him, this has become necessary due to the gradual shift in the use of technology over the years, which is partly attributed to the Covid-19 pandemic. Logan Wort spoke to Joy Business after addressing members of the forum at the ongoing annual congress which is seeking to come up with strategies to deal with the revenue shortfalls expected in the implementation of the continental free trade agreement.
“The digital economy in Ghana has exponentially increased over the last decade by about $3 billion annually, but what is the domestic tax take from there? So, you need to invest in the digitalisation of your tax administration, advance policies for taxing multinational enterprises, and bring more of the middle class into the tax net. This is what the conference will seek to do through well-researched documents from experts and analysts who hails from the continent”, he said.
Ghana to improve transparency in timber trade (GhanaToday)
The government has developed a Timber Legality Assurance System to improve transparency, efficiency and legality in the timber trade in European and domestic markets. The system is designed within the Forest Law Enforcement, Governance and Trade (FLEGT) framework which is being implemented by the Government of Ghana and the European Union.
Minister for Lands and Natural Resources, Mr Samuel Abu Jinapor announced that the ministry has also developed a Wood Tracking-Decision Support System (GWT-DSS), an electronic tracking system that tracks and traces timber from source to export. According to him, the GWT-DSS would ensure that any timber that enters the supply chain originates from legal sources.
African trade and integration
Revenue authorities, MoF need to work on revenue losses from AfCFTA (GhanaWeb)
The Commissioner-General of GRA, Rev Dr. Ammishaddai Owusu-Amoah, says Revenue authorities will need to work with Ministries of Finance to fill in the revenue losses expected from the lowering of import duties in the implementation of the AfCFTA.
The parties in the AfCFTA will have to reduce tariffs on “90% of goods that are traded within the continent” and this may result in short-term tariff revenue loss to most African member countries where trade taxes remain a key source of revenue. He said the execution of the AfCFTA would require technical skills, enhanced processes, and the use of technology by cooperating with competent authorities such as the Ministry of Trade, Customs authorities, tax authorities, and other law enforcement agencies involved in detecting various financial and customs-related crimes.
Dr Owusu Amoah was speaking at the opening of the three-day African Tax Administration Forum and African Tax Research Network 7th Annual Congress on the theme: Tax and Revenue Implication of the African Continental Free Trade Agreement.
How the African Continental Free Trade Area (AfCFTA) promises to improve labour mobility, spur wealth creation in Africa: By Margaret Soi, Head of Cross Border Banking, Standard Chartered Bank (African Business)
SADC Chair proposes an industrialization fund (sardc.net)
The SADC Chairperson, President Felix Tshisekedi has proposed a regional fund to support industrialization in SADC Member States and ensure the sustainability of its integration agenda.
Tshisekedi, who is President of the Democratic Republic of Congo (DRC) said this in his welcome message as host of the 42nd Summit of Heads of State and Government of the Southern African Development Community (SADC) held in August. In the official Summit publication that provides an annual review of progress, President Tshisekedi said the time has come for SADC to consider setting up a dedicated fund to support its industrialization agenda. “We encourage our organization to reflect on the need to set up an industrialization fund in order to finance industrialization projects and programmes and get out of dependence on external partners,” he said. “In this way, we will be able to achieve a major economic and technological transformation at national and regional levels towards the deepening of regional integration as advocated by the SADC Industrialization Strategy and Roadmap.”
He said the regional fund would complement resources from other partners including international cooperating partners and private investors, thus allowing the region to take full charge of its developmental trajectory and industrial path.
What hinders use of EAC’s simplified trade regime? (The New Times)
Misinterpretation and low understanding by Customs officials as well as cross-border traders, and corruption, are among major challenges hindering the full utilisation of the East African Community’s Simplified Trade Regime (STR), experts say.
Under the EAC Customs Union, the STR is a special provision aimed specifically at small traders who regularly transact in low value consignments. The legal basis of the STR is rule 14 of the EAC Rules of Origin; particularly paragraph four, which provides for use of a regularly updated and circulated Eligible List of Products (ELP) for ease and simplification of intra-EAC trade.
EAC Secretariat reaffirms commitment to infrastructure development to boost intra-regional trade (EAC)
The East African Community (EAC) Deputy Secretary General in charge of Planning and Infrastructure, Eng. Steven Mlote, has reaffirmed the commitment of the EAC Secretariat to infrastructure development aimed at boosting intra-regional trade and free movement of persons across the Community’s seven (7) Partner States. Eng. Mlote assured a visiting delegation from the Parliament of the United Republic of Tanzania (URT) Parliamentary Committee responsible for Foreign Affairs, Defence and Security of the EAC’s readiness to implement various infrastructure projects coordinated jointly by the Secretariat and Partner States.
The committee led by its Chairperson, Hon Vita Rashid Kawawa, was on a one-day working tour to the EAC Headquarters in Arusha over the weekend.
On his part, Hon. Kawawa the committee’s gratitude for information shared by the EAC Secretariat and requested that the entire URT Parliament should be informed about the ongoing programmes and projects aim to ease transportation in the region. “Infrastructure is a very important enabler in the EAC region in terms of helping to transport farm produce and different goods to the market,” said Kawawa.
Conference of Speakers of Parliaments concludes with a pledge to strengthen continental solidarity (African Union)
The high-level consultation between the Pan-African Parliament (PAP) and Speakers of Regional and National Parliaments has concluded with calls for strengthening links through continental solidarity and support for the implementation of the continent’s flagship development blueprint, the Agenda 2063.
The meeting took place in Midrand, South Africa on the sidelines of the Sitting of the PAP Committees under the African Union (AU) theme of the year 2022 as the year of Nutrition. The 11th conference of heads of African legislatures endorsed Agenda 2063 as a mechanism to an integrated and prosperous Africa driven by its own citizens. Hence the meeting called on the AU Member States to enact enabling legislation for effective implementation and realisation of the Aspirations of Agenda 2063.
In line with this vision, the PAP was encouraged to establish formal frameworks and communication channels to regularly transmit information on AU treaties requiring signatures and ratification. The African Continental Free Trade Area (AfCFTA) was recognised by the Speakers of Parliaments, as a vehicle for continental integration and economic development. In this regard, the African Parliamentary leadership called for ratification of the Protocol to the Treaty establishing the African Economic Community Relating to Free Movement of Persons, Right of Residence and Right of Establishment. The meeting further called upon the removal of Trade Tariffs and other barriers to facilitate and speed up the free movement of goods in order to boost African economies.
West Africa food insecurity demands climate-smart response amid multiple crises (France24)
As crises multiply and the devastating conflict in Ukraine drags on, its global effects are being felt hard in the Sahel and West Africa, a region with more than 38 million people facing acute food insecurity. The war’s impacts risk pushing an additional 7 to 10 million people in the region into food insecurity.
In the face of the crisis, the World Bank is deploying short- and long-term responses to boost food and nutrition security, reduce risks, and strengthen food systems. These actions form part of the institution’s global response to the ongoing food security crisis, with up to $30 billion in existing and new projects in areas spanning agriculture, nutrition, social protection, water, and irrigation. This financing will include efforts to encourage food and fertilizer production, enhance food systems, facilitate greater trade, and support vulnerable households and producers.
“Today, with soaring inflation, unfortunately many people in Africa are struggling to have access to basics such as food products,” says Ousmane Diagana, World Bank Vice President for Western and Central Africa.
Markets in the Sahel and across West and Central Africa are experiencing stark price rises of oil, rice, wheat and other commodities on the international market, and poorer households spend disproportionately more on food than those better off. The price of wheat, a food staple for many households, stood 60% higher at the start of June 2022 compared to January 2021, according to World Bank data. The price of fertilisers too, essential for productive agriculture, has surged since the war and now stands almost three times higher than a year ago. The knock-on effect is expected to reduce food production over the coming years as soaring prices force many farmers to use less fertiliser.
The World Bank is mobilising support for emergency responses in the Sahel and West Africa to help countries at risk of food insecurity respond faster. It is also working with its humanitarian partners to monitor regional food insecurity and draw up Food Security Preparedness Plans.
Africa must fast-track adoption of proven and sustainable solutions to survive food crisis (CNBCAfrica)
African countries now urgently need to fast-track the uptake of agricultural solutions with the greatest potential for immediate impact as well as lasting sustainability at the scale of millions of farmers. The wheat compact under the Technologies for African Agricultural Transformation (TAAT) initiative, supported by the African Development Bank and implemented by CGIAR, has already deployed more than 30 heat tolerant varieties benefitting 1.5 million people.
The African Development Bank and several UN agencies - the UN Regional Office for Central Africa, the Educational, Scientific and Cultural Organization (UNESCO) and the UN Office on Drugs and Crime (UNODC) - are joining forces to advance climate action in Central Africa. This region is highly strategic in the fight against climate change as it is home to the Congo Basin rainforest, the second largest tropical forest on the planet and the only remaining net carbon sink on earth.
These organizations expressed their willingness to strengthen their partnership during a meeting on 1 September in Libreville, on the sidelines of the 2022 African Climate Week. The Week was held from 29 August-2 September on the theme: “Roles of the Congo Basin Rainforest, biosphere reserves, and World Heritage Sites in climate change resilience and the implementation of the Sustainable Development Goals in Central Africa.”
Savina Ammassari, Resident Coordinator of the United Nations System in Gabon, said: “The challenges related to the lack of financial resources - which were discussed during this African Climate Week - must be resolved to strengthen actions related to adaptation and mitigation of the effects of climate change.”
European bank to greatly increase its funding for climate change adaptation in Africa (Engineering News)
Africa: Rich nations pledge funds at climate crisis summit (DW)
Wealthy nations said they would spend about $25 billion (€25 billion) by 2025 to boost Africa’s efforts to adapt to climate change, according to officials at a climate summit in Rotterdam, Netherlands, held Monday. The summit was the first ever to bring together leaders from across many governments and institutions, like the World Trade Organization and the International Monetary Fund, to discuss climate adaption techniques for Africa. The amount pledged was billed as the largest ever climate adaptation effort globally.
The African Adaptation Summit takes place just weeks after the Organization for Economic Cooperation and Development (OECD) found that rich countries had failed to deliver on their 2009 promise to spend $100 billion a year by 2020 to help developing countries adapt to global warming.
The OECD said richer nations gave $83.3 billion to poorer nations in 2020, the highest ever sum, but still short of the original amount.
Africa will need between $1.3 and $1.6 trillion this decade to implement itss commitments to Paris climate agreement, an annual cost between $140 and $300 billion, Adesina said.
Enabling Digital and Data Services for Expanded Economic in Africa (IPPmedia)
The white paper is part of the broader collaboration between AUDA-NEPAD and the Vodacom Group on strengthening the digital capabilities of AU Member States for enhanced public service delivery. The paper has come at an opportune time when the continent, recovering from the effects of COVID-19 and other global shocks, is putting in increased efforts to accelerate the implementation of digitalization strategies and policies. The paper provides in-depth analysis of the importance of appropriate free data flows within the context of the Fourth Industrial Revolution (4IR) and beneficiation from digital economies.
More importantly, the paper draws on lessons from other jurisdictions to provide elaborate policy recommendations and guidelines on how SADC Member States and other AU Member States can leverage on the principles of Africa’s regional economic integration frameworks to reduce regulatory barriers in order to create regional digital markets for the operationalization of the African Continental Free Trade Area (AfCFTA).
Energy Chamber Strongly Endorses the Central Africa Business Energy Forum (ZAWYA)
In 2022, it is imperative for Africa to prioritize regional cooperation and collaboration if the continent is to realize its goal of making energy poverty history by 2030. For both producing and non-producing nations, tackling the energy crisis together will not only ensure everyone on the continent has access to electricity but that a new era of socioeconomic growth is ushered in, an era that brings new levels of job creation, industrialization and energy security.
In pursuit of regional cooperation, the African Energy Chamber (AEC) is proud to officially endorse the upcoming Central Africa Business Energy Forum (CABEF), which takes place from September 8 – 9, 2022, in Doula, Cameroon. Under the theme, “Building Oil and Gas Infrastructure to End Energy Poverty in Central Africa by 2030”, this year’s edition of CABEF will unite the Central African sub-region’s energy players and policymakers to discuss the challenges and opportunities within the region’s burgeoning hydrocarbon sector.
Comprising massive oil and gas resources, Central African Economic and Monetary Community (CEMAC) countries have exceptional energy production potential. However, due to aging infrastructure and the low level of investment across the entire oil and gas value chains, energy access rates in the region have remained low and economic growth restricted. In 2022, as CEMAC countries aim to reverse this trend, forums such as CEBAF 2022 will be key, as it represents the best platform where discussions will be held on how to boost investment for optimal oil and gas exploration and production and make energy poverty history once and for all.
IICA to strengthen ties with Africa on innovation, trade and food security in Rwanda (News Ghana)
The Inter-American Institute for Cooperation on Agriculture (IICA) will take a new step in its newly developed work agenda with Africa, during the visit to Rwanda this week by its Director General, Manuel Otero, who will participate in the AGRF Summit, the main African forum to advance the food and agriculture agenda of this continent, which will hold its 12th Annual Summit under the theme “Grow, Nourish, Reward – Bold Actions for Resilient Food Systems”.
In Kigali, the Rwandan capital, Otero will participate, among other activities, in a plenary meeting with ministers and secretaries of Agriculture of Africa together with Indar Weir, the Minister of Agriculture and Food Security of Barbados, and will give a presentation at the discussion panel “South-South Cooperation: Leadership from the Americas and Asia”. He will share this panel with Agnes Kalibata, president of AGRA, the Alliance for a Green Revolution in Africa.
“We are making progress towards deepening the IICA-AGRA relationship and for this reason we are strengthening South-South Cooperation initiatives given the relevance of the African continent and the many opportunities it offers for the agriculture sector in the Americas. At the table that Otero will share with Kalibata in Rwanda, experiences, lessons and ambitions will be presented with a view to promoting development, for which cooperation is paramount”, said Jorge Werthein, Special Advisor to the Director General of IICA.
IICA, together with AGRA -which works to transform African agriculture from a subsistence model to one of solid businesses that improve the livelihoods of farming households- and the African Union Development Agency-New Partnership for Africa’s Development (AUDA-NEPAD) organized the recent “Africa-Americas Ministerial Summit on Agrifood Systems”, which was held in Costa Rica to strengthen bi-regional cooperation, face the challenges of food security and strengthen the role of both continents in productive matters at times where overlapping crises – health, environment and war- pose threats to world food security.
The United Nations Industrial Development Organization (UNIDO) presented its Industrial Development Report (IDR) 2022: The future of industrialization in a post-pandemic world at a side event of the Eighth Tokyo International Conference on African Development (TICAD8).
“Working together in global cooperation is of utmost importance to build a more resilient future”, said UNIDO Director General Gerd Müller in his pre-recorded opening statement. “As the global economy recovers from the COVID-19 pandemic, African countries face major challenges related to climate change and soaring food and energy prices. I call for an industrial development that is inclusive and sustainable to build dynamic, innovative and people-centered economies”.
“One of the IDR’s key findings is that countries with stronger industrial capabilities were more resilient to the economic impact”, said Nobuya Haraguchi, Chief of UNIDO’s Industrial Policy Research Unit during his presentation. “The report also identifies three megatrends that are changing the process of industrial development: industrial digitalization and automation; global production rebalancing; and industrial greening”.
At the conclusion of the 8th Tokyo International Conference on African Development (TICAD 8) hosted in Tunisia, the United Nations Development Programme (UNDP) welcomes a comprehensive package of support from Japan to drive economic growth, digital innovation, green transition and create jobs as the continent grapples with a series of challenges that threaten to undo many of the development gains achieved in recent years. “The impacts of the global food, energy and finance crises are rippling through communities across the globe. These cost-of-living spikes are having a particularly pronounced effect on the Continent of Africa where millions of people now face hunger and famine in regions like the Horn of Africa and the Sahel as climate-change-induced drought takes hold at the same time,” says UNDP Administrator, Achim Steiner.
“At this crucial moment, TICAD8 and its business forum have mobilized fresh development partnerships with the private sector that aim to generate additional investment in some African countries: helping to drive green economic growth defined by new jobs and better livelihoods as well as much-needed measures to tackle a climate crisis that is hitting faster than expected.”
A total of US$30 billion in public and private financial contributions were announced at the high-level meeting, including continuation of a $4 billion investment through Japan’s Green Growth Initiative for Africa to help address climate change on the continent.
Global economy
Investment treaty regime needs reforms to support climate action (UNCTAD)
UNCTAD has launched two issues’ notes dealing with the international investment treaty regime and climate action. A note entitled “International Investment Treaty Regime and Climate Action” provides countries with policy recommendations on reforming the regime to make it more aligned with climate action and other public policy imperatives. And another note entitled “Treaty-based Investor-State Dispute Settlement Cases and Climate Action” takes stock of such cases related to measures or sectors of direct relevance to climate action. “The current international investment agreements (IIAs) regime can constrain states when implementing measures to combat climate change,” the first note says. UNCTAD urges reform of the IIA regime to ensure investment treaties don’t hinder states from achieving a just transition to low-carbon economies.
Integrate trade into climate strategies, DG Okonjo-Iweala says at Africa Adaptation Summit (WTO)
“I feel trade is part of the solution. You might have financing, but if the trade policies don’t align, you may not be able to get the technologies you need for climate adaptation,” DG Okonjo-Iweala said at the event convened by the GCA in preparation for the COP27 climate summit to be held in Egypt in November. “Africa already faces a tremendous amount of costs with respect to adaptation. Through trade, we can increase the return on investment and increase the resources available to African governments for adaptation.”
The Director-General noted that Africa is likely to be the continent most affected by climate change, accounting for 80% of the world’s population that are most at risk, according to the Intergovernmental Panel on Climate Change. Agriculture will be among the sectors most at risk, with some studies estimating that climate impacts could cause crop productivity growth on the African continent to shrink by a third and lead to annual GDP losses of 3.8% by 2060.
Algeria a ‘reliable’ gas supplier: European Union chief Michel (The East African)
Algeria is a “reliable” energy supplier, European Council President Charles Michel said on Monday during a visit to the North African country as Europe scrambles to replace Russian supplies. “Given the international circumstances that we’re all aware of, energy cooperation is obviously essential, and we see Algeria as a reliable, loyal and committed partner in the field of energy cooperation,” Michel said after meeting President Abdelmadjid Tebboune. European officials have been looking to Algeria, Africa’s biggest gas exporter, to fill a shortfall in supplies after Russia’s invasion of Ukraine in February sent prices soaring.
Algiers has seen a string of high-profile visitors in recent months seeking to boost exports. Late last month, French President Emmanuel Macron welcomed moves by Algiers to help “diversify” Europe’s gas supplies.
Related News
tralac Daily News
Local news
South Africa’s economy is ‘almost unfixable’ (BusinessTech)
Despite recent moves to cut red tape – especially for small and medium businesses – analysts and trade experts say the Department of Trade and Industry and Competition (DTIC) is actively ‘kneecapping’ investment in South Africa by trying to force businesses to do things its way. Chief executive of consultancy and advisory group XA Global Trade Advisors, Donald MacKay, told the Sunday Times that the department’s meddling in all aspects of trade and business has effectively deterred investment in the country at an unknown scale, leading to an economy that is “almost unfixable”.
He said that the government wants investment, to boost the economy and create jobs, but refuses to compromise – trying to force businesses into impossible contracts when seeking tariff relief or agreements that would benefit a business.
The government at least seems to be aware of this particular stumbling block at some level, with recent moves from the department cutting back on some of these requirements. The department this week published new regulations for public comment to cut back – or rather, provide exceptions – on restrictions on horizontal and vertical practices for small and medium businesses. This was in response to president Cyril Ramaphosa’s announcements that his administration would cut red tape for certain businesses in sectors that are struggling post-Covid-19. However, the department recently published new proposed regulations seeking to tighten up the country’s scrap metal trade.
Legitimate dealers in scrap metal – which stolen metals are ultimately exported as – would be burdened with more red tape, and the entire industry would suffer as a result. Meanwhile, the European Union has also taken issue with the plans, saying that they do not abide by the World Trade Organisation’s rules.
R1.1 Billion Disbursed to Women Owned Enterprises in the Last Three Years (the dtic)
Over the last three financial years, 139 women-owned enterprises operating in manufacturing, retail and services industries were supported and R1.1 billion was disbursed to fund these businesses. This was said by the Chief Operating Officer of the Industrial Financing unit at the Department of Trade, Industry and Competition (the dtic), Ms Susan Mangole during the Women’s Month Seminar hosted in Sandton.
“The total amount to these women-owned enterprise is R1.1 billion of which 55% was grants and 45% loans through partnership funds, 83 % of these enterprises are located in Gauteng, KwaZulu-Natal and Western Cape. 5 431 jobs were supported through these measures,” said Mangole. According to Mangole, the dtic, through its various sector master plans strives to support women enterprises. She said the support was offered as both financial and non-financial to unlock economic participation of women in the economy.
Beitbridge Border Post modernisation: Planning for systems, innovation and efficiencies (Sunday Mail)
The launch last Wednesday of a modernised Beitbridge Border Post marked a high point in the Second Republic’s vision of overcoming limitations of geography to make Zimbabwe a land-linked Economy. This goal behoved that we look at improving transport infrastructures, principally those to do with road, rail and air transport, so these talk to each other, and to systems in neighbouring countries. A key component of that thrust involved addressing inefficiencies and bottlenecks at all our ports of entry, with the goal of facilitating movement of people, vehicles, goods and services between borders. The transformation of Beitbridge thus has to be seen in that broad, sub-regional context. What makes Beitbridge’s upgrade especially significant is that it combines sub-regional, national and community objectives.
Zimbabwe, Botswana, Mozambique railway line on cards (Bulawayo24 News)
ZIMBABWE, Botswana and Mozambique are working on plans to establish a railway line to connect the three countries with a gateway to the sea, President Mnangagwa has said. Further, Zimbabwe and Botswana are working round the clock to establish a One-Stop Border Post at Plumtree-Ramokgwebana. This comes as Zimbabwe — under the Second Republic — is pushing to rejoin the Kazungula Bridge across the Zambezi River which will contribute to regional growth through increased traffic along the North-South corridor. The planned development will facilitate trade through reduced transit time for freight and passengers, reduced time-based trade and transport costs as well as improved border management operations arising from a one border facility.
EU double-edged sword for Kenya’s horticulture (Business Daily)
In the last couple of years, Kenya’s exports of major crops have come under threat over increased cases of chemical residues on horticulture produce that has seen Europe impose stricter checks, posing a threat to the country’s foreign earnings.
The European Union (EU) has lowered the requirements on residues to a bare minimum, meaning that any level found on the consignment whether high or low will be treated in the same way.
An increase in the number of exports intercepted not only subjects exporters to losses but also places the country at risk of being banned from shipping its produce to the EU until a corrective measure is taken.
“All the relevant bodies must come together to address the challenge of residues as increased checks on our export produce pose a risk of more products being intercepted and is risky for our exports,” said Kephis managing director Theophilus Mutui.
Trials on flowers are ongoing at the moment but they will be implemented next year. The move poses a major risk, should they be found to have high chemical residues given that flowers are the leading segment in terms of income on horticulture earnings. Flowers alone raked in Sh37 billion in six months to June this year out of the Sh48 billion that the horticulture sector realised in the review period.
Why upward review of agric budget in 2023 is imperative (The Guardian Nigeria)
A dismal 1.7 per cent was allocated to the Agriculture sector in the 2022 annual national budget – a far cry from the 10 per cent benchmark recommended at the Malabo Declaration on Accelerated Agricultural Growth and Transformation for Shared Prosperity and Improved Livelihoods. The declaration was the significant highlight of the 23rd Ordinary Session of the African Union Assembly in Malabo, Equatorial Guinea in 2014. Although the AU Heads of State and Government committed themselves to the declaration, majority of the countries, including Nigeria have failed to implement the deal.
Worried about this development, which has been linked to the increasing food crisis across the country, especially this year, stakeholders in the sector have girded their loins to influence the upward review of the sector’s national budget allocation across the various strata of government.
The Chairman of the Senate Committee on Agriculture, Bima Muhammad Enagi, said despite the challenges facing the sector, agriculture remains the largest contributor to the country’s GDP in the second quarter of 2022 at 23.3 per cent; beyond the contributions of Trade (16.8 per cent), Telecommunication (15 per cent), Manufacturing (8.7 per cent) and the Oil and Gas sector (6.3 per cent).
He said: “The agricultural sector has the largest potential to lead millions of Nigerians out of poverty. Thus, the sector should be given utmost priority in national economic policies and national and sub-national budgets.
Nigeria to pay $496m to settle claims over steel plants (Engineering News)
Nigeria has agreed to pay $496-million to settle a multi-billion dollar claim from Global Steel Holdings Ltd following the termination of a contract to upgrade the country’s steel plants, the presidency said on Saturday. Global Steel, which is linked to India’s Mittal family, had between 2004-7 acquired rights to Nigeria’s entire state steel industry via five major concessions and share purchase contracts. The deal also included access to Nigeria’s iron ore reserves and the central railway network.
Ethiopia, China enjoy comprehensive, strategic economic cooperation: official (Xinhua)
Ethiopia and China have a comprehensive strategic partnership, which has been cemented on a principle of win-win and mutual cooperation, a senior Ethiopian government official has said. Ahmed Shide, Ethiopia’s Minister of Finance, recently told Xinhua that the two friendly nations have been working to create a “community of shared destiny” amid establishing a strong relationship between their leaders. “Over the last decade, China and Ethiopia have worked together on many fields wherein China has been availing significant financial support to implement many great projects in Ethiopia like the Addis Ababa-Djibouti Standard Gauge Railway,” Shide said.
Highlighting that China helped Ethiopia carry out many roads, energy, industrial parks and water supply development projects, the finance minister emphasized that the Addis Ababa-Djibouti Standard Gauge Railway, also known as the Ethiopia-Djibouti railway, has served as a testimony of the early harvest of the Belt and Road Initiative.
According to the minister, China has been investing in existing industrial parks and setting up manufacturing plants both for domestic and international markets as more Chinese investors have been playing a visible role in Ethiopia’s economic development.
African trade and integration
Mrs Selma Ashipala-Musavyi, the Namibian Ambassador to Ghana, has called on Africans to enhance personal relationships across the Continent to advance the ideals of the African Continental Free Trade Area Agreement (AfCFTA). She said socialising across the continent would help in the appreciation of iridescent culture and build synergy for the development of trade and industry. “For meaningful intra-Africa trade to be sustained and beneficial, Africans must interact and visit one another’s countries. In so doing, we shall embrace one another and build confidence among ourselves,” Mrs Ashipala-Musavyi said. “We shall be exposed to and take pride in our rich and diverse African culture. Most importantly, we shall and begin to consume what we produce, and create jobs for our young people. This should be the content of intra African tourism.”
The East African Community (EAC) Secretary General, Hon (Dr.) Peter Mathuki, is set to lead a delegation comprising the Heads of EAC Organs and Institutions and eminent regional business leaders, to the bloc’s newest Partner State, the Democratic Republic of the Congo (DRC) from 6th September to 9th September, 2022.
The forum will provide a platform for heads of EAC Organs and Institutions to enhance awareness and understanding of the various commitments in the integration pillars and the governing instruments that are in place at the EAC level, to DRC government officials.
On 8th - 9th September, the private sector leaders accompanying the Secretary General will hold Business-to-Business (B2B) meetings with DRC entrepreneurs.
“Since the DRC joined the EAC, the entire bloc now is about 300 million people offering the region a tremendous market, with massive partnership and investment opportunities across sectors such as mining, agriculture, ICT and health. Equity BCDC is here in the DRC to help support finance these activities as a trusted partner to both the East African Business Council (EABC) and the EAC,” he added. The forum will also provide an opportunity for regional business leaders to deliberate on the challenges facing the private sector with the EAC Secretary General.
Somalia bids to join East African Community (Independent)
Just eleven days after the Democratic Republic of Congo ratified the East African Community Treaty on July 11, the bloc’s leaders agreed to fast-track the verification of Somalia’s application to join the community. Sitting on July 22 in Arusha, Tanzania, where the East African Community Secretariat is based, the East African Community Heads of State Summit agreed to fast-track the verification of Somalia’s application which it first sent in 2012. The Summit directed the Council of Ministers to expeditiously carry out the verification exercise in accordance with the EAC procedure for admission of new members into the EAC and report to the 23rd meeting of the Summit. This followed Somalia’s President, Hassan Sheikh Mohamud, formally requesting the Summit consider his country’s application to be the eighth partner state of the East African Community.
Zim moves to remove Comesa trade barriers (The Herald)
ZIMBABWE is one of only four members of Common Market for Eastern and Southern Africa (Comesa) member countries that have received capacity building support aimed at eliminating Non-Tariff Barriers on trade of common goods. This is in line with the requisite regulations of Comesa, a 21-member economic bloc whose population exceeds 583 million, entails a Gross Domestic Product of $805 billion and sees export/import trade in goods worth US$324 billion per year. Comesa forms a major market place for both internal and external trading.
The training follows an earlier decision by the Comesa Council of Ministers to provide technical support to member States to implement national NTBs elimination programmes which are premised on sound national NTBs elimination strategies. Comesa regulations for the elimination of NTBs provide legally constituted tools for reporting, monitoring and addressing NTBs, the institutional arrangements to manage the NTBs elimination process as well as procedures followed to tackle situations that create NTBs.
Africa is a Key Region for Sustainability (Mercados Africanos)
According to Deputy Secretary General of the UN, Amina Mohammed, the international community must change its perception of Africa from a dependent continent to a key region on the global stage, with the same rights and position as other continents. More than 1,2 billion people live in Africa. Approximately 60% of the African population is under 35 years of age. Rapid urbanization in African countries promises new opportunities, including in the field of industrialization on the continent. Amina Mohammed believes the continent can benefit from the Sustainable Development Goals and the 2063 Agenda for Africa moving forward.
The UN representative stressed that, in order to achieve these goals, the international community must jointly reduce the consequences of the numerous crises.
The UN Deputy Chief also spoke about the African Free Trade Area, which contributes to the industrialization, diversification and digitization of the economies of the countries in the region, as well as helping to strengthen regional cooperation.
Financial inclusion critical for African agriculture success (NewsDay)
INDUSTRY and Commerce minister Sekai Nzenza says financial inclusion for farmers is critical in modernising African agriculture. Speaking at the United Nations Industrial Development Organisation (Unido) forum last week, Nzenza said African farmers face difficulties in accessing credit, leading to a lack of investment in agricultural technologies. “Access to credit has a significant effect on the farmer’s decision to adopt modern technologies. Financial inclusion for farmers is critical for modernising African agriculture. In many African countries, farmers face difficulties in accessing credit, leading to lack of investment in new agricultural technologies,” she said.
Zimbabwe is implementing a five-year economic blueprint called the National Development Strategy 1, which prioritises value chains development. Agriculture is the mainstay of the Zimbabwean economy and manufacturing companies source 60% of their raw materials from the sector.
“A targeted strategic intention to ensure the growth of the agricultural sector which contributed 17% towards gross domestic product and accounts for US$302 million in the first half of 2021 through sector specific strategies,” she said. “More specifically, a contribution of the agricultural sector to industry through a robust local content strategy focusing on manufacturing for manufacturers looking at home grown solutions to reduce the import bill.”
Amina Mohammed called on the international community to work on three fronts that would benefit African economies and help achieve the Sustainable Development Goals.
Experts urge new model for Africa’s infrastructure growth (The Guardian Nigeria)
With the global infrastructure shortfall expected to reach $15 trillion by 2040, the World Forum for Africa (WOFA) and other experts have called for improved dialogue towards integration of labeling and certification ahead of infrastructure development in the continent. The experts, who said there is enormous need for infrastructure, noted that the move would boost long-term capital flows for projects and their sustainability. According to them, while public sector funding would continue to be important for infrastructure development, mobilisation of private sector investment will be critical to achieve global infrastructure investment goals effectively and efficiently. Some of these initiatives are FAST-Infra and Blue Dot Network.
Addressing the forum, the convener of WOFA, Abi Haruna, said the need for adequate representation of Africa in the global initiative for labeling and certifications for infrastructure projects cannot be over emphasised. According to him, the essence of the forum was to explore areas of cooperation in establishing an African inclusive labeling and standards for major infrastructure projects on the continent with the aim of de-risking, having sustainable, and environmentally considerate infrastructure.
Pan-African airline plans fly into headwinds (The East African)
The quest to create a pan-African airline through a joint venture between Kenya Airways and South African Airways by June next year is facing early turbulence after both carriers sought exemption from clauses on the competition. Kenya Airways (KQ) last week said it is seeking exemptions from the clauses in Kenya and regional trading blocs, several months after South African Airways (SAA) raised the same plea back home. The move means it will be difficult to implement the Single African Air Transport Market (SAATM) and the Africa Continental Free Trade Area (AfCFTA) initiatives that are key in having a continental airline.
The clauses about competition, among others, include sharing of resources and key information about the sector including hubs. This means KQ would have to seek exemptions from the Competition Authority of Kenya as well as the Common Market for Eastern and Southern Africa Competition Commission.
African countries must chart their unique paths toward achieving a just transition, experts during a session said, to assess the needs, challenges, and opportunities of implementing a just energy transition in Africa at Africa Climate Week. The event, titled The Just Transition in the African Context, was jointly organized by the African Development Bank and the African Climate Foundation. Laura Becerra of Neyen Consulting moderated. Faten Aggad, African Climate Foundation’s Senior Advisor on Climate Diplomacy, said: “Just transition is a process. It may take time to secure consensus among domestic actors and ensure inclusivity.” Speaking on the issue of scale, she said that while leapfrogging was possible at the household level, the transition could take longer for industry and other commercial sectors. There are significant gaps between financing commitments and disbursement in Africa, Aggad added.
Gareth Phillips, African Development Bank Manager for Climate and Environmental Finance, emphasized the need to view just transition from an African perspective and to ensure its relevance for all Africans.
ACTIF2022 ends with a commitment to building a commercial bridge for shared prosperity (Afreximbank)
The AfriCaribbean Trade and Investment Forum 2022 (ACTIF2022) successfully concluded in Bridgetown, Barbados, with a commitment by participants to remove the scars of the past and build a commercial bridge towards forging a prosperous future for Africa and the Caribbean. In the communique presented at the end of the Forum, the partners pledged the concrete implementation of strategic partnership between the business communities in Africa and the Caribbean with the objective of fostering bilateral cooperation and engagement in trade, investment, technology transfer, innovation, transport, tourism, culture and other services.
The signing of the Partnership Agreement between Afreximbank and seven Caribbean States will usher in investments to concretise the commercial relations between the two regions, with an immediate focus on establishing an air bridge , and business to business match-making through the newly established African-Caribbean Business Council.
AU Commissioner urges Africa and the Caribbean to strengthen trade ties (New Ghana)
Ambassador Muchanga who was making a statement at the Opening Ceremony of the Africaribbean Trade and Investment Forum held at Bridgetown, Barbados said the African Union would after the event, avail a comprehensive report to the African Union Member States with a strong recommendation for them to become a strategic partner of future editions. Albert Muchanga, African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals has hinted that Africa and the Caribbean will strike a strong partnership in trade and investment.
12 Partnership Agreements, MoUs Raise Hope for Africa, Caribbean Trade Integration (This Day)
The signing of partnership agreements and Memoranda of Understanding (MoU) by representatives of corporate entities that attended the maiden AfriCaribbean Trade and Investment Forum in Bridgetown, Barbados has raised hope for the integration of the Caribbean into African trade. According to the agreement signed by CBB Governor, Mr. Cleviston Haynes; CBB Business and Finance Strategist, Mr. Ian Colleymore; and the Executive Vice President, Inter-African Trade Bank of Afreximbank, Dr. Kanayo Awani, Afreximbank will work with the CBB to promote its instruments of intervention with public and private enterprises to provide financing (funded and unfunded) to Caribbean entities to grow the volumes of trade and investment.
It’s full steam ahead for China-Africa trade flows (The Star Online)
On Aug 23, a ceremony in Beijing commemorating the arrival of the first batch of avocados from Kenya also served as a launchpad to welcome more African produce into the vast Chinese market. This follows the arrival of some 20 tonnes of fresh Hass avocados from smallholder Kenyan farmers in Shanghai on Aug 2. That same day, the China-Africa Business Council released a report on China’s investments in African countries and said the two sides have made great strides in all-around, multilevel and wide-ranging cooperation over the past 22 years. The report showed that Chinese companies are committed to investing in Africa’s supply chain.
Humphrey Moshi, director of the Centre for Chinese Studies at the University of Dar es Salaam in Tanzania, said China’s rise as one of Africa’s leading trade partners is owed to the fact that China’s investment portfolio in Africa is very diversified, covering a broad range of sectors. “In assessing the feasibility of China’s trade trajectory in Africa, we note that China does not apply the narrow Western assessment criterion of economic viability alone, but a much broader and more comprehensive criterion of socio-economic development,” Moshi said.
TICAD: Survey shows Japanese countries still cautious on Africa (African Business)
The promised explosion of Japanese investment in Africa remains more wish than reality, according to a Japanese government survey shared with delegates at the eighth instalment of the Tokyo International Conference on African Development (TICAD 8) in Tunis last weekend.
The number of Japanese companies in Africa with plans to expand in the continent was up more than 6% on the year before, to 49%.This contrasts with 45% of companies that expect to remain stagnant, and a 4% fall in the number of companies that expect to shrink their African operations, to just 5%. Moreover, almost 50% of surveyed companies report that the importance of Africa to their business has increased over the preceding five years, with 60% expecting that Africa will become even more important over the next five years. Yet while prospects are increasing, the total value of Japanese investment in Africa remains miniscule. Compared to the UK and France, which lead the way with 2021 FDI totalling $65bn and $60bn respectively, the US with $44bn and regional rival China with $43bn, Japanese FDI into Africa has fallen from a high point of $12bn in 2013 to just $5.8bn last year.
Global economy
2nd Illicit Trade Forum (UNCTAD)
Following the inclusion of illicit trade as the only new area of work in the outcome document of UNCTAD15, the Bridgetown Covenant, UNCTAD will host the second iteration of the Illicit Trade Forum in September 2022. The event will be organised in collaboration with the Transnational Alliance to Combat Illicit Trade (TRACIT).
Illicit trade significantly endangers all aspects of the SDGs, creating a triple threat to the financing of development: crowding out legitimate economic activity, depriving governments of revenues for investment in vital public services and increasing the costs of achieving the SDGs by eroding the progress already made. Further, identifying, quantifying and combatting illicit trade requires significant investments from member States and collaboration amongst international organisations, along with cooperative efforts from private sector stakeholders. To address these issues, the two-day Forum will hold interactive panel discussions on the following topics:
Hitting reset button with China debt cancellations (Monitor)
Without giving much away, the Chinese government recently revealed that it will write off 23 matured interest-free loans for 17 Least Developed Countries (LDC) in Africa. The classification rules out Kenya and Tanzania who are lower-middle-income countries as per the World Bank. The World Bank recently confirmed that Uganda is still in the LDC classification as President Museveni appeared to indicate otherwise. “The President was very clear. He never declared Uganda a middle income; it is not his business,” Mr Ramathan Ggoobi, Uganda’s Secretary to the Treasury, said at the Economic Growth Forum in August.
What isn’t in dispute is that Uganda is saddled in debt. Its public debt currently stands at approximately Shs74 trillion ($19.5 billion), with Shs47 trillion ($12.3 billion) of it external. While any debt cancellation will remove a millstone round the country’s neck, past precedents indicate that it will not be a silver bullet.
A recent policy paper by United States Agency for International Development (USAID) and Southern and Eastern Africa Trade Information and Negotiations Institute (Seatini) indicated that Uganda has already exceeded thresholds on the present value of debt-to-revenue and is closer to the thresholds of other indicators except for debt service-to-exports ratio.
Egypt prepares for flagship UN climate conference, in a year of unprecedented global weather shocks (UN News)
Regional authorities in Egypt, the host country of the 2022 UN climate conference (COP27), are ramping up initiatives designed to improve the country’s environmental credentials, and speed up its transition to a low carbon economy. The event will begin on 4 November, in the Egyptian resort city of Sharm El-Sheikh.
Several COP27-related initiatives are underway in Egypt: they include projects related to sustainable transport, waste recycling, women’s health, the transition to clean energy, sustainable cities, adaptation measures in the water and agriculture sector, and the links between peace and climate. Beyond COP27, Egypt is working towards a 2050 national climate strategy, which is based around the reduction of emissions in all sectors, and adaptation to potential changes in the climate – in agriculture, water resources, coastal areas, and health.
World food commodity prices dip for fifth month in a row in August (FAO)
The barometer for world food commodity prices declined for the fifth consecutive month in August, as quotations for most benchmark items dropped, according to a new report released today by the Food and Agriculture Organization of the United Nations (FAO). The closely watched FAO Food Price Index averaged 138.0 points in August, down 1.9 percent from July although remaining 7.9 percent above its value a year before. The Index tracks monthly changes in the international prices of a basket of commonly traded food commodities.
FAO also today issued its updated cereal production forecast for 2022, with a significantly lower outlook. Global cereal production is anticipated to decline by 38.9 million tonnes, or 1.4 percent, from the previous year, according to the new Cereal Supply and Demand Brief. World trade in cereals is predicted to decline by 1.9 percent in 2022/2023 (July/June) from the year-earlier period, to 469.6 million tonnes.
G7 Finance Ministers statement on Russia’s war of aggression against Ukraine (GOV.UK)
We, the G7 Finance Ministers, met on 2 September 2022 to discuss our united response to Russia’s war of aggression against Ukraine and the war’s harmful impact on the global economy. We continue to condemn the brutal, unprovoked, unjustifiable and illegal war of aggression against Ukraine by Russia and aided by Belarus. Russia’s war of aggression is causing global economic disruptions and is threatening the security of the global supply of energy and food. The economic costs of the war and consequent price increases are felt disproportionately by vulnerable groups across all economies and particularly by those countries already facing food insecurities and fiscal challenges.
We confirm our joint political intention to finalise and implement a comprehensive prohibition of services which enable maritime transportation of Russian-origin crude oil and petroleum products globally – the provision of such services would only be allowed if the oil and petroleum products are purchased at or below a price (“the price cap”) determined by the broad coalition of countries adhering to and implementing the price cap. The price cap is specifically designed to reduce Russian revenues and Russia’s ability to fund its war of aggression whilst limiting the impact of Russia´s war on global energy prices, particularly for low and middle-income countries, by only permitting service providers to continue to do business
Related News
tralac Daily News
Local news
EU warns SA scrap export ban may contravene WTO obligations (Fin24)
The European Union has raised concerns over Minister Ebrahim Patel’s plans to ban the exports of scrap metal as a measure to prevent theft, warning that such “trade distorting measures” may contravene South Africa’s obligations as a member of the World Trade Organisation. The issues were raised in a written comment submitted by the EU to the Department of Trade, Industry and Competition on its policy proposals to curb scrap metal theft in South Africa. The most contentious of the proposed measures is a six-month ban on the exportation of ferrous and non-ferrous waste and scrap metal to curb theft while other regulatory measures are put in place. The EU has, however, argued that South Africa should first put measures in place at a domestic level before contemplating an export ban.
Increased dumping of chicken expected, particularly from Brazil (Moneyweb)
The poultry industry expects to see an increase in dumped imported chicken, particularly from Brazil, within the next few months after receiving a “licence” to continue their dumping from Minister of Trade, Industry and Competition Ebrahim Patel. According to a report by the FairPlay Movement, Rainbow Chicken (owned by JSE-listed RCL Foods) has called for the immediate imposition of anti-dumping duties on bone-in chicken portions from Brazil, Denmark, Ireland, Poland and Spain. The South African Poultry Association (Sapa) says they have reconciled themselves to Patel’s decision to suspend the imposition of anti-dumping duties for 12 months, but it will hurt the industry.
The International Trade Administration Commission (Itac) found evidence of dumping and introduced provisional anti-dumping duties for six months at the end of last year. After receiving submissions and comments from several importers from the affected countries and local stakeholders it recommended the introduction of the duties for a period of at least five years.
However, Patel considered the “current rapid rise” in food prices locally and globally and the impact the imposition of the anti-dumping duty may have on the price of chicken and postponed the imposition of the tariffs by a year.
Sapa CEO Izaak Breytenbach says the minister has wrongly assumed that the tariff increase will lead to increased prices. “We have always argued that an increase in tariffs has never led to an increase in consumer prices.” The main reason is that consumers never benefit from the lower prices. Imports are priced at market or slightly lower prices than the price of local products.
Breytenbach says Sapa expects to see the quantum of the increase in about three months’ time when the South African Revenue Service publishes the latest import statistics. He says the industry will not take any legal action because of the suspension of the tariffs, but still finds it “surprising and disappointing” that the minister decided not to protect the local industry while acknowledging that dumping of bone-in chicken portions is causing producers “material harm”.
Better coordination and collaboration can speed up the process of resolving the ban on vegetable exports (Cape Business News)
Better coordination and collaboration can speed up the process of resolving Botswana and Namibia’s ban on South African vegetable exports. For this reason, the participation of key role players from different spheres of government dealing with market access issues is essential to speedily identify and resolve market access challenges. Botswana and Namibia’s recent unilateral decision to block some fruit and vegetable exports from South Africa is unfortunate and contradicts the existing Southern African Customs Union (SACU) trade agreement. In 2021 the Western Cape’s total vegetable export to the SACU totalled R268 million, with seventy-five per cent of this destined for Namibia and Botswana.
Import tariffs and non-tariff barriers continue to represent critical barriers to South Africa’s agricultural exports. Importantly, they should never become arbitrary or unjustifiable. However, when they do, they pose a discriminatory challenge for an export market, countering the benefits of a duty-free trade formed through customs unions or regional economic regions. While trade diplomacy is facilitated at a national government level with the partner country, leveraging the relationships that the Western Cape Department of Agriculture (WCDoA) has established through its commodity approach model could streamline processes to speed up discussion among role players.
TIASA takes SATMC, ITAC to court as tyre battle intensifies (Engineering News)
The Tyre Importers Association of South Africa (TIASA) has applied to court to compel the International Trade Administration Commission of South Africa (Itac) and the South African Tyre Manufacturers Conference (SATMC) to disclose what it says is “critical information that is being withheld” regarding SATMC’s application for the implementation of anti-dumping duties on imported tyres. The aim is also to challenge the manner in which Itac is conducting the investigation. SATMC, which includes Continental, Bridgestone, Goodyear and Sumitomo, has applied to Itac for the implementation of additional duties of between 8% and 69% on passenger, taxi, bus and truck vehicle tyres imported from China.
Current import duties levied on tyres range from 25% to 30%.
Uganda and Rwanda resume talks to revive bilateral ties (The East African)
Rwanda and Uganda have officially resumed diplomatic talks, a significant step towards reviving relations between the two countries that were at loggerheads for almost three years till the beginning of this year. A delegation of Ugandan officials led by the Foreign Affairs Minister Odongo Jeje Abubakhar held talks with their Rwandan counterparts on Thursday in Kigali.
In a joint statement released after the meeting on Thursday, the countries said the diplomatic and political consultations are a continuation of the commitment of the heads of State to deepen further and strengthen the cordial relations between the two countries. “The ministers exchanged views on regional matters relating to security, trade, investment, and strategic regional projects. “They agreed to review and revive bilateral cooperation in the different areas of interest by convening the next Joint Permanent Commission between Rwanda and Uganda,” the statement reads.
Ismael Buchanan, a Kigali-based political analyst and lecturer of International Relations at the University of Rwanda, says reviving bilateral trade should be a priority. “There has been tremendous progress made in Rwanda and Uganda relations this year. The constant visit by officials is key because there are still issues that need to be addressed, including trade. There is hope, but we are yet to see Ugandan products on Rwanda’s market as we used to,” he said.
IMF board approves $1.3 billion for debt-ridden Zambia in bailout (The East African)
The International Monetary Fund (IMF) has approved a $1.3 billion loan to Zambia to help the debt-ridden country restore fiscal stability. In 2020, battering the Covid-19 pandemic and choking under the weight of loans, Zambia became the first country in Africa to default on foreign debt. According to official government data, the southern African country’s debt totalled $31.74 billion at the end of 2021, of which $17.27 billion was external debt, mostly from two Eurobonds and China.
Africa’s second-largest copper producer has struggled to jumpstart its economy as it grapples with a debt load reaching 120 percent of the GDP. The country had reached a tentative agreement with IMF in December for a $1.3 billion facility, contingent on Zambia taking steps to reduce its debt to levels IMF deemed sustainable. In late July, its creditors led by China and France, pledged to negotiate a restructuring of Zambia’s debts, a move IMF Managing Director Kristalina Georgieva said was “clearing the way” for funding.
Kwara Customs boss to enforce new ECOWAS tariff (The Guardian Nigeria)
Nigeria Customs Service (NCS) Area Controller, Kwara State Command, Aliyu Bello, is set to enforce the reviewed Economic Community of West African State (ECOWAS) Common External Tariff (CET) in the state.
The Federal Government, early this year, approved the implementation of the 2022 fiscal policy measures, comprising Supplementary Protection Measures (SPM) for the implementation of the CET 2022-2026 and Excise Duty of N10 per litre on non-alcoholic beverages, cigarettes and tobacco products from April 1, 2022. A grace period of 90 days was granted to enable the excise factories producing non-alcoholic and beverages to prepare for compliance with the new directives, which elapsed on June 30, 2022. The new price regime commenced on July 1, 2022.
AGI advocates abolition of import tax on raw materials (BusinessGhana)
That the AGI said would help address the depreciation of the Cedi and enhance the industrialisation of the government. The President of AGI, Dr Humphrey Ayim-Darke, who stated this in an interview with the Ghanaian Times on the sidelines of the launch of the African Continental Free Trade Area (AfCFTA) Hub, said the five-per cent tax imposed on imported raw materials and the benchmark discount values were disincentive to local production and was encouraging the importation of finished goods into the country.
According to the AGI President said such a move would be beneficial to the country and help the government to raise more tax revenue. In spite of the increase in freight charges and disruptions in global supply chains occasioned by COVID-pandemic and Russia-Ukraine war, there was increase in importation of finished products into the country, exerting pressure on the cedi.
African Development Bank Vice-President for Private Sector, Infrastructure and Industrialization, Mr. Solomon Quaynor, officially visited Mozambique last week. He met with Mozambican government representatives and members of the private sector. Discussions covered the bank’s country strategy for Mozambique, recent reforms the government has undertaken, and the country’s strategic energy and transport sectors in particular.
Quaynor commended the government for pushing through reforms that are expected to accelerate economic recovery from the impacts of the Covid-19 pandemic and tropical cyclones Idai and Kenneth. He said the government’s reforms align with the bank’s new country strategy, covering the 2022-2027 period, and its initiatives to strengthen the private sector. The bank’s new country strategy prioritizes economic private sector investment and structural transformation of agricultural value-chains.
Under the previous country strategy, which covered the period 2017-2022, Mozambique launched or completed several key projects. They included the Nacala corridor, Temane transmission lines, the Pemba-Lichinga special agro-processing zone and the Drought Recovery and Agriculture Resilience initiative. Discussions also covered transport and logistics infrastructure. Magala said: “Mozambique has a strategic geographic location in the region, making it an ideal route to port access for neighboring landlocked countries including Zimbabwe, Eswatini, Malawi and Zambia. Strategic and innovative investments in improving the major transport systems and port efficiency can transform Mozambique into a major logistics hub.”
Egypt’s investments in Africa up to $10.2 bln; trade volume with Ivory Coast up 178%: Trade minister (Ahram Online)
Samir made the remarks during celebrations of Ivory Coast’s 62nd National Day at the country’s embassy in Cairo on Wednesday. In a speech during the ceremony, Samir conveyed the greetings of Prime Minister Mostafa Madbouly to the Ivorian government and people on the occasion of the country’s National Day, which is celebrated annually on 7 August. Samir said the public and private sectors in Egypt and Ivory Coast have worked in recent years to boost trade and economic relations, leading to the large increase in trade volume in 2021. The minister said that the commodities exchanged between the two countries include electrical machines, paper, plastics, glass, iron, steel, cocoa, wood and fruits.
Egyptian Trade and Industry Minister Ahmed Samir highlighted Egypt’s keenness to enhance investment cooperation with the countries of the African continent, noting that African economic development is one of the most important priorities of the Egyptian state.
Libya Economic Monitor – September 2022 (World Bank)
Libya is struggling to cope with a trifecta of crises, including the civil conflict, the COVID-19 pandemic and most recently, the impact of the Russia-Ukraine crisis. Notwithstanding the tempering of conflict intensity since 2021, the Libyan economy has been battered by the conflict. GDP per capita estimates in 2021 stood at about half of its value in 2010 before the start of the conflict. Since 2020, the population has been hit by multiple waves of the COVID-19 pandemic. In addition, food insecurity has worsened, precipitated by the Russia-Ukraine crisis and the resulting shortages and price increases for staple foods in the domestic market.
Libya’s trade and current account balances rebounded in 2021 and early 2022, thanks to recovering oil exports and receipts. Estimates reveal that Libya’s reserve position remains very comfortable. The official exchange rate remained relatively stable throughout 2021, but depreciation pressures are increasing. The economic outlook is uncertain. It is impossible to forecast economic outcomes with any degree of confidence due to the high uncertainty surrounding political and security developments. However, if Libya manages to maintain or ramp up oil production and exports compared to 2021, or at least avoid extended disruptions, it could benefit from soaring global oil prices, which would translate into strong economic growth, higher fiscal revenues and an inflow of hard currency. This would positively affect the trade, current account, and fiscal balances.
African trade and integration
SADC electronic Certificate of Origin to be launched on 7th September 2022 (SADC)
As part of the ongoing efforts to increase intra-regional trade and aid the regional economic development, the Southern African Development Community (SADC) will launch the SADC electronic Certificate of Origin (e-CoO) in Blantyre, Republic of Malawi, on 7th September 2022 under the theme ‘Enhancing trade facilitation through the SADC Electronic Certificate of Origin’. The official launch will be preceded by a workshop to be held on 6th September 2022, which will draw participants from SADC Member States, customs officials and private sector to deliberate on the significance of improving the SADC intra-regional trade through the smooth movement of quality goods across the borders with the overall objective of aiding the region’s economic development.
The development of the eCoO is one of the milestones of the Trade Facilitation Programme (TFP), which is supported by the European Union and provides for capacity-building and technical assistance in border cooperation by ensuring the implementation of SADC Coordinated Border Management Guidelines and the provisions of the World Trade Organisation (WTO’s) Trade Facilitation Agreement, particularly on improving the efficiency of their operations. The e-CoO, which replaces the manual SADC Certificate of Origin issued by the issuing authority in the country of origin of the goods, will help the trader to apply on-line, trace the application and get the response on the submission digitally, thus infusing efficiency in the process.
1,882 standards in East Africa set for harmonisation (The Citizen)
Some 1,882 standards have been designated for harmonisation in a renewed drive to bolster trade within the East African Community (EAC) bloc. However, the slow speed of harmonisation is said to have been impeding trade among EAC member states. Intra-EAC trade has remained static at 15 percent of the total trade with the rest of the world in recent years, according to official data. Only 31.9 percent of standards that have been designated for harmonisation in the region have been harmonised, some partially. This was revealed yesterday during a regional public and private sector consultative engagement on standards organised by the East African Business Council (EABC).
“They have been harmonised by between 65 and 90 percent,” said Mr Dafa when giving his opening remarks on behalf of EABC hief executive John Bosco Kalisa. He said the harmonisation process was still impeded by several challenges, including NTBs and low adoption. “The importance of standards in trade cannot be overemphasised,” Mr Dafa said. “Where standards have not been harmonised, significant differences have emerged between national standards within the regional economic communities (RECs), thus creating major impediments to trade for producers and traders.”
Digital Journeys: Freeing Foreign Exchange in Africa (IMF)
A big problem for Africa’s economic development is the expense and difficulty of making payments across borders. It is one reason trade among Africa’s 55 countries amounts to only about 15 percent of their total imports and exports. By contrast, an estimated 60 percent of Asian trade takes place within the continent. In the European Union, the proportion is roughly 70 percent.
“When the payments are unlocked, invariably you are unlocking trade between African countries,” says Owusu Banahene, the Ghana country manager for AZA Finance, which handles foreign currency transactions for companies doing business in Africa. Cross-border payments are just one of the many barriers to trade in Africa. Others range from high tariffs and cumbersome border procedures to divergent commercial regulations and congested roads.
Meeting Of African Ministers of Finance, Economy, Development and Environment ahead of COP27 (UNECA)
The world is in the throes of a cumulative crisis – the COVID-19 pandemic, economic decimation and climate change and environmental degradation. When the Ukrainian crisis that is hitting several countries in such diverse sectors as wheat and tourism with full force, is coupled with this, the equation becomes much more complex and innovative approaches are vital. There is consensus that a green pathway which promotes carbon neutral investments, clean jobs and reduced pollution will guarantee sustainability.
The rapid and far-reaching transitions required to stay within the Paris Agreement temperature target require enormous financing. For African countries, already committing between 3-9% of its budgets to finance climate change adaptations, such financing requires significant support from partners at a scale far larger than has been mobilised so far, and through appropriate instruments that are relevant and responsive to the specific needs and circumstances of Africa.
The overall objective of the meeting is to i) ensure coherence of African climate finance positions with needs and ii) prioritise actions that can be led by African countries with targeted support to increase climate finance available for implementation.
Focus switches to COP27 as African leaders gather in Gabon for Africa Climate Week (The Commonwealth)
Speaking at the opening ceremony, which kicked off in Gabon’s capital, Libreville, on 29 August, the Commonwealth Secretary-General noted that climate change is a profound challenge for Africa, where 21 countries are members of the Commonwealth. “Climate change is perhaps the greatest challenge of our time,” the Secretary-General said, adding that it poses an existential threat to small states and is “a threat multiplier which amplifies existing social, political, and economic inequalities.” The high-level event comes just months before the UN Climate Change Conference COP27 is scheduled to take place in Sharm El-Sheikh, Egypt, in November, and brings together ministers, officials from key UN and multilateral agencies and more than 1,000 delegates from 42 African countries.
Noting the urgency for climate action and the importance of the two events being held on African soil, the Commonwealth Secretary-General said: “Africa Climate Week is an important opportunity for us to come together, to work together and to share with, listen to, and learn from one another. “Africa is a central player in the modern Commonwealth, and climate change is a profound challenge for Africa – so climate change in Africa is a central consideration for the Commonwealth.
“Tackling climate change will require the most significant political, social and economic effort that the world has ever seen. It is up to us to set the tone and shape the quality of that effort.
Afreximbank reveals plans for Caribbean Exim Bank as AfriCaribbean Trade and Investment Forum opens (Afreximbank)
The first-ever AfriCaribbean Trade and Investment Forum (ACTIF2022) opened today in Bridgetown, Barbados, with African Export-Import Bank (Afreximbank) announcing that it would work with governments of the Caribbean Community (CARICOM) to set up a Caribbean Exim Bank and that it envisaged committing an investment of US$700 million in the Caribbean. The forum is being held under the theme ‘One People, One Destiny: Uniting and Reimagining Our Future’.
Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank said: “Once these arrangements are concluded and visible, we will also open an office here in the Caribbean. And if we do agree, the Bank will work with governments of the CARICOM to set up a Caribbean Exim Bank as an Afreximbank subsidiary or affiliate,” adding that Afreximbank “envisages committing an investment of US$700 million in the Caribbean as soon as a regional office is opened.”
“We will want to leave here with actionable proposals on how to open air and sea links between the Caribbean and Africa. We would like to leave here with concrete plans to open banking and payment rails, to see joint ventures for industrial projects, to deepen our commercial collaboration in the creative and commercial space, to collectively protect our intellectual properties to share knowledge and invest in climate adaption projects. We must be proud that this is a reunion arising out of a felt need, underpinned by a solid economic, cultural, historical rationale,” added Professor Oramah.
Expanding African-Caribbean Trade (ITC)
The International Trade Centre (ITC) today launched a new report that identifies $1 billion in export potential between Africa and the Caribbean. ITC and the African Export-Import Bank (Afreximbank) also extended their five-year partnership, which will help tackle trade barriers and build business capacity to realize that potential.
ITC’s Expanding African-Caribbean Trade report highlights that partnerships such as this one with Afreximbank are needed to tackle the economic consequences of global crises. The report shows how the two regions have an export potential exceeding $1 billion in sectors ranging from agrifood and healthcare to tourism, fertilizers and automobiles. Unlocking this potential requires stronger relationships between African and Caribbean traders, the removal of trade obstacles such as high tariffs and non-tariff barriers, and greater investment in growth areas. The goods trade between the two regions is negligible and concentrated in just a few sectors including primary minerals and chemicals.
With the right support in place, Africa could boost its annual exports of merchandise to the Caribbean by $171 million by 2026, a 54% increase over 2020 levels. The Caribbean could expand goods exports to Africa by $80 million or 29% – and its exports of services such as travel and transport even more.
Afreximbank tackles banking sector market failure (Sunday Mail)
AfriCaribbean Trade and Investment Forum heralds dawn of new cooperation (African News Magazine)
Egypt’s trade minister urges more inter-Arab cooperation to face economic challenges (Ahram Online)
Egypt’s Trade and Industry Minister Ahmed Samir addressing the opening of the 110th session of the Arab League’s Economic and Social Council, which kicked off at the ministerial level at the Arab League General Secretariat HQ in Cairo on Thursday. The minister made the remarks while addressing the opening of the 110th session of the Arab League’s Economic and Social Council, which kicked off at the ministerial level at the Arab League General Secretariat HQ in Cairo on Thursday.
Earlier this year, Egypt presided over the council’s 109th session, during which one ordinary session was held, and two extraordinary sessions were held at the ministerial level. The 109th session also approved the acceptance of the certificate of origin issued electronically, and also adopted the Transit Transport Agreement between Arab countries.
The Egyptian minister praised the outcomes of the previous session as a reflection of Arab countries’ belief in the importance of establishing a framework for providing adequate facilities and benefits as well as simplifying the procedures that impede the movement of transport across Arab lands. He said that accepting e-certificates of origin was one of the much-needed requirements to facilitate trade to achieve better integration in global markets, while the transit transport deal is expected to reflect positively on the Arab region and its inter-trade.
Global economy
UNCTAD convenes second forum to ramp up fight against illicit trade (UNCTAD)
UNCTAD will host its second Illicit Trade Forum on 6 and 7 September, providing a platform for countries to collaborate on tackling this menace to development. The event to be held in Geneva and online is organized in collaboration with the Transnational Alliance to Combat Illicit Trade (TRACIT).
UNCTAD defines illicit trade as the transaction of any goods that fail to comply with legislative and regulatory frameworks, including in the ways in which they are produced, transported, certified or sold. Examples include trade in endangered species and falsified medicines and illicit financial flows related to drug trafficking, terrorist financing, trade misinvoicing and aggressive tax avoidance. “When trade is fair, rules-based, and strategic – trade is a source of good, a source of development that can help us achieve our Sustainable Development Goals. Illicit trade is the opposite of this. Illicit trade is neither fair, nor legal, nor purposeful,” UNCTAD Secretary-General Rebeca Grynspan said.
How Blockchain is being used to build trust across value chains (Engineering News)
Distributed ledger technologies, such as blockchain, in which immutable copies of ledger entries are shared with all stakeholders, are being used to improve the speed at which members and whole supply chains can react to changes, and the transparency of the entire value chain, as verification can be done at each conversion or value-adding step. Transparency and visibility across a supply chain will boost trust, which will, in turn, increase the speed at which supply chain processes can be completed, says technology analysis organisation Edge of NFT cofounder Dr Eathan Janney.
G-20 ministers at odds at Bali climate action meeting (Asia News Network)
A Group of 20 meeting of environment ministers in Bali concluded on Wednesday without a joint communiqué for a leaders’ summit later in the year, with group chair Indonesia saying some countries had disagreed on the proposed document’s wording. Speaking at a press conference after the one-day gathering, Environment and Forestry Minister Siti Nurbaya Bakar said the meeting chair would be issuing a summary of discussions instead of a joint communiqué as a result of the differing views.
“In the process, the discussion on these commitments has been quite challenging given the various views and implications for the interests of each member country,” Siti told reporters. Commitments discussed at Wednesday’s meeting included efforts to reduce the impact of climate change, the loss of biodiversity and land damage, as well as efforts to reduce pollution and environmental damage.
Related News
tralac Daily News
Local news
Payments Association reconfigures for digital inclusion (ITWeb)
The South African Reserve Bank’s (SARB’s) decision to restructure the Payments Association of South Africa (PASA) into the new co-designed Payments Industry Body will stimulate innovation and promote collaboration and financial inclusion in SA’s financial sector. This was the word from Chris Wood, regional MD of Southern Africa and PALOPS region, at payments solutions firm Network International. Speaking to ITWeb on the side-lines of the ninth Africa Bank 4.0 Summit hosted by Network International, Wood discussed the current state of SA’s banking system and how the newly-formed Payments Industry Body is expected to boost digital inclusion by accelerating digital transformation in the sector. PASA is the payment system management body recognised by the SARB, in terms of the National Payment System Act of 1998.
In June 2021, the SARB announced plans to reform PASA into the new Payments Industry Body, in efforts to add an inclusive community of payment system stakeholders from other emerging industries, such as e-commerce and fintech players, as committee representatives. According to SARB, the new body was introduced in efforts to achieve and maintain interoperability, support the execution of Vision 2025 and other policy goals, in the interest of the National Payment System.
pdf The National Payment System Framework and Strategy Vision 2025 (1.06 MB)
DTIC issues draft regulations exempting SMMEs from some practices set out in the Competition Act (Engineering News)
Trade, Industry and Competition Minister Ebrahim Patel has announced the publishing of a draft notice in the Government Gazette on August 31 which sets out proposed terms for a new block exemption for small-, medium-sized and microenterprises (SMMEs) to be exempted from certain categories of prohibited agreement practices laid out in Competition Act. Speaking at the sixteenth Annual Competition Law, Economics and Policy Conference in Sandton, Patel said the purpose of the exemption would be to enable greater collaboration between SMMEs that would otherwise contravene Sections 4.1 and 5.1 of the Competition Act.
South African energy issues need joint effort - Minerals Council (Engineering News)
South Africa’s energy conundrum will require a concerted effort by both industry and government, the Minerals Council South Africa said. Speaking to Mining Weekly Online on the sidelines of Paydirt’s Africa Downunder conference, in Perth, Minerals Council CEO Roger Baxter said that the solution to solving South Africa’s energy crisis is unlocking ‘massive’ private sector investment.
South African, Egyptian competition authorities sign MoU (Engineering News)
The Competition Commission South Africa has signed a memorandum of understanding (MoU) with the Egyptian Competition Authority (ECA) to establish a general framework for bilateral communication and cooperation in the fields of competition law and policy, as well as enforcement. The MoU, which was signed at the sixteenth Annual Competition Law, Economics and Policy Conference in Sandton, Johannesburg, on August 31, forms part of multilateral competition initiatives aimed at strengthening bilateral ties by enhancing technical cooperation and information sharing on respective competition laws and policies.
SA trade surplus widens to R24.76bn in July (Moneyweb)
Namibia to learn from Equatorial Guinea on LNG development (Gas World)
A high-level delegation led by Hon. Tom Alweendo, Namibia’s Minister of Mines and Energy, is conducting a diplomatic visit to regional gas leader, Equatorial Guinea, this week with the aim of strengthening energy ties and expanding dialogue between the two nations.
Having made two sizeable oil and gas discoveries this year, Namibia is committed to seeing these developments come online as soon as possible. In May 2007, EG LNG’s first cargo was delivered, making it one of the fastest LNG projects in terms of the timeline it took from final investment decision to first cargo - and Namibia’s Minister Alweendo is hoping to replicate the project’s development. A group of Namibian engineers will stay on in Equatorial Guinea for the next four months, training and working closely with Equatorial Guinean nationals.
Minister Alweendo said, ”This way, it will accelerate the process for us to build the skills. It is a new industry for us so we need to start building those skills and this agreement will really help us and we are thankful for that. As Africa, we need to start increasing collaboration among ourselves.”
Mobile money agents handled a third of Kenya’s GDP in six months (Business Daily)
One in every three shillings spent by consumers, businesses, and the government in Kenya in the first six months of the year moved through mobile money, cementing the country’s position as a global leader in the mobile money revolution.
The latest data published by the Central Bank of Kenya (CBK) shows that the cash handled by mobile money agents in the first half of the year increased by 17.5 percent to Sh3.8 trillion. The data, which tracks the monthly performance of mobile money, shows growth from Sh3.26 trillion over the same period last year.
The cash, which is mainly handled by Safaricom’s M-Pesa agents, represents 31 percent of the country’s 2021 gross domestic product (GDP) that was recorded at Sh12 trillion.
The deepening of mobile money in the country is behind the push for full interoperability that was completed in July, as all the players demanded a share of the party.
The Kenyan economy is largely made up of the informal sector, and the adoption of other forms of sending money or settling payments has grown faster, giving commercial banks a run for their money.
‘Add Local Value To Resources To Avoid Global Shocks’ (Leadership)
The chairman of BUA Group, said there is need to add local value to resources to avoid global shocks. BUA Group, has invested in a vertically integrated sugar facility in Nigeria’s Kwara state. The $400 million project includes a 20,000-hectare sugar plantation, a sugar milling plant, a sugar refinery, an ethanol plant and a 35 MW power plant fuelled by bagasse, a sugar cane residue.
Sugar may not get the attention of other crops, even though it is frequently in the top five crops traded globally by value. Africa has some important producers – notably in Southern Africa such as Eswatini and Mozambique, but countries such as Nigeria, Egypt and Algeria still import more than they consume. In Nigeria imports account for 90 per cent of consumption.
Rabiu, said sugar is one of many low-hanging fruits when it comes to the agricultural opportunity and to working within the country’s import substitution strategy, saying BUA group, one of the most important diversified conglomerates in Nigeria, is already the fourth largest listed company in Nigeria by market capitalisation, operating in foods, cement, mining and infrastructure, and now agricultural production and processing.
He said localised production is key, pointing out that, the conflict between Russia and Ukraine has once again highlighted Africa’s vulnerabilities. “Countries that produce what they consume have been better able to manage their inflationary risk,” he said.
Two years on, Nigeria still preparing for AfCFTA (The Guardian Nigeria)
Almost two years after the implementation of the African Continental Free Trade Area Agreement (AfCFTA), which came into force on January 1, 2021, Nigeria continues to lag behind in making the trade agreement operational owing to structural challenges, lack of consensus on trade protocols and strategy among stakeholders.
Though the country continues to express readiness to commence trading, the political will to implement the deal remains in doubt going by the pace and protectionist stance of Nigeria and other African governments.
Already, seven countries, including Rwanda, Cameroun, Egypt, Ghana, Kenya, Mauritius and Tanzania have been selected among countries to start trading under the AfCFTA framework in a pilot phase.
The move seeks to test the environmental, legal and trade policy basis for intra-African trade, according to the AfCFTA secretariat. The countries were selected from the 36 that had expressed interest in trading under the pilot phase. Each of the applicants had submitted its tariff schedule.
The Secretary said Nigeria must pay attention to trade facilitation, policies, infrastructure, trade information, free movement of people and goods, finance and institutional coordination between the federal government and private sector.
Nigeria’s Debt To Hit Record N53trn As FG plans Fresh N11trn Borrowing (The Whistler Nigeria)
If the proposal by the Minister of Finance, Mrs Zaianb Ahmed to the Federal Government to borrow the sum of N11.3trn to finance the 2023 budget, then the total loan portfolio under the administration of President Muhammadu Buhari would hit a record N53trn. The Minister had told federal lawmakers that the Federal Government projects to borrow about N11.3trn and privatize some of its holdings in national enterprises to finance the budget deficit in 2023. She had told them the 2023 budget deficit is expected to exceed N12.42trn if it should keep petroleum subsidy for the entire 2023 fiscal year.
Data from the Debt Management Office showed that out of the $10.19bn proposed to be used for debt servicing, about $6.95bn representing 68.2 per cent would be spent to service the commercial portion of the external debt burden while the balance of $3.24bn or 31.79 per cent is being projected for payment of interest for multilateral debt obligation.
India, Nigeria Increase Investment In ICT, Others (The Tide)
Nigeria and India have strengthened collaboration in Information and Communications Technology (ICT), green economy, artificial intelligence and entrepreneurship training as both countries boost their bilateral relations.
“We have in areas of business a very solid and growing relations. India is one of the largest investors in Nigeria and of course India is one of the largest markets for Nigerian crude.
“In Information Technology, India is the leader. So, we really feel that we can benefit enormously now in the relationship that we are building going forward,” Onyeama said.
“Today we have the opportunity to discuss on various bilateral aspects, including the trade, consular issues, the education and all these issues”, he said. He continued that the newly established NIBC will be a milestone in the improvement of the bilateral trade, investment in various sector, noting that India is ready to provide soft credit to Nigeria for to build solar power plants.
Nigeria displaces South Africa as Korea’s biggest African trade partner (The Guardian Nigeria)
Nigeria has displaced South Africa as the major trading partner of the Republic of Korea on the African continent, Director, Korea-Africa Foundation, Lyeo Woon-ki has said. Lyeo, who disclosed this in Abuja at a media parley, explained that trade between Nigeria and Korea was two billion dollars in 2021 but that the present figures indicate that the trade volume for 2022 has reached over $1.5 billion as of June this year which surpasses the trade volume between Korea and South Africa.
“The trade volume between Nigeria and Korea is bigger than between Korea and South Africa. In 2021, the figure was around $2 billion and by the half of this year, the figure has gone beyond $1.5 billion. All of these happened despite the COVID-19 pandemic and limited trading. We are sure it will be about two billion dollars by the end of the current year. The balance of trade between both countries is almost equal,” he stated. He added that the Korea-Africa Foundation was established to foster business and cultural cooperation between Korea and the continent.
Liberia Can Hit Billions in Revenue Says LRA CG-Designate (Global News Network)
Liberia Revenue Authority (LRA) Commissioner General-designate Thomas Doe Nah Monday faced Senate’s confirmation hearing for a second term and expressed the possibility of taking the country’s annual revenue collection to a billion United States dollars or more. At his confirmation hearing, CG Nah stated the LRA remains committed to surpassing last year’s collection of US$579 Million.
With the 2022 revenue target at 809 million, Mr. Nah assured the Senate’s Committee on Ways, Means, and Finance that Liberia can reach the billion-dollar target or more in revenue in the next few years with their full support. The Commissioner General designate noted, “Liberia is a country, and we deserve to be dividing a billion dollars and not 500 million” to foster national developments that will improve the people and the country’s welfare.
The LRA CG designate told the Senate that with the help of his dedicated employees, he has successfully steered the affairs of the LRA, stabilizing it through innovation and technology, despite global economic meltdowns worsened by the Covid 19 pandemic. The LRA has since digitized tax payment through several means, including mobile money transfer, direct bank transfer, electronic filing, among others, to boost revenue collection in what he called ‘changing the digital ecosystem of tax collection.’
Gambia pays D1.6M commitment to WTO (The Point)
Dwelling on the benefits gained by the country as a member of WTO, PS Dampha explained that WTO provides lots of training to his ministry, saying one of their staff is currently at WTO for a 10-month internship. “Every four years we normally do a trade policy review and WTO provides that support. If we have a trade dispute with any of the countries, we can address it to the level of WTO because it is rule-based that facilitates a multilateral trading system.” As regards the government’s commitment to implement WTO’s commitments per the rules, he said “The Gambia is currently implementing all WTO’s commitments and the trade ministry annually provides them with regular notification reports.”
African trade and integration
EAC-COMESA-SADC Tripartite Not Ratified 7 Years On (East African Business Week)
The East African Community, Common Market for Eastern and Southern Africa and the Southern Africa Development Cooperation Tripartite Free Trade Area agreement has not been put into force despite member countries signing it 7 years ago. According to a document seen by EABW NEWS, the delay in ratification is due to a slow response from member countries that have not yet signed the ratification treaty. “Most of the remaining countries indicate the process to ratify is still in progress. “So, the process is on course but the pace is slow,” said Mwangi Gakunga the COMESA Communications Manager.
The EAC-COMESA-SADC Tripartite Free Trade Area agreement has a total of 29 member countries representing 53% of the African Union membership and more than 60% of the Africa Continent GDP ($1.88 Trillion) with a population of over 800 million people. In 2015, 22 of the 29 member countries signed in acceptance of the treaty but only 11 have ratified it. “For the agreement to go into full force or be implemented, at least 14 member countries have to ratify,” added Gakunga. The 11 member countries that have ratified are Egypt, Eswatini, South Africa, Rwanda, Burundi, Uganda, Botswana, Namibia, Zambia, Kenya and Zimbabwe.
President unveils new-look Beitbridge Border Post (The Herald)
President Mnangagwa yesterday commissioned the modernised Beitbridge Border Post and said all border posts would be upgraded to improve the quality of services in the transport sub-sector. He directed Transport and Infrastructural Development Minister Felix Mhona to ensure the speedy upgrading of the Beitbridge-Bulawayo-Victoria Falls highway.
In his address, President Mnangagwa said the upgrading and modernisation of the Beitbridge Border Post was “a key milestone in the operationalisation of the Integrated Beitbridge Development Master Plan and stands out as one of the signature infrastructure projects being implemented, to date, by the Second Republic. “In line with international trends, and to further improve the quality of our services in the transport sub-sector, my Government will accelerate the upgrade and modernisation of other border posts, including Chirundu, Forbes, Plumtree, Nyamapanda, Kazungula, and Victoria Falls.
“We are also aware that the development of these border posts must be augmented by other complementing infrastructure for the efficient transportation of goods, movement of people and provision of services.
President Mnangagwa said the scope of works undertaken at the Beitbridge Border Post, “will undoubtedly see this port of entry facilitate the smooth discharge of the statutory functions of various stakeholders, as well as result in a seamless link of our economy with other jurisdictions along the North-South Corridor.
Abuse of STR Policy Limiting Cross Border Trade - Findings (KT Press)
The East African Community (EAC) regional economic community officials have called on women to report cases of abuse, harassment and corruption encountered during the implementation of the regional Simplified Trade Regime (STR). The call comes after new evidence shows slow uptake of implementing the STR policy which was put in place to ease doing business for women and youth who are the largest number of cross border traders
The Common Market for Eastern and Southern Africa (COMESA) launched the STR in 2010 to simplify and streamline the documentation and procedures for the clearance of small cross border traders’ consignments, while enabling them to benefit from the COMESA preferential tariffs trading environment.
The STR is a special provision aimed specifically at small traders who regularly transact in low value consignments and an approved simplified certificate of origin (SCOO) exempts consignments of goods that originate in the EAC and are valued at under US$ 2,000 from payment of import duty in any EAC destination country. However, reports indicate that most traders lack sufficient knowledge about the rights provided under the protocols and how these provisions are applied, the obligatory customs procedures and documentation.
The 2022 findings by the East African Legislative Assembly (EALA), Committee on Communication, Trade and Investment show that cross border businesses are affected by non tariff barriers The findings show that small traders, 80% of them women and youth, face a number of difficulties such as harassment, corruption, including bribery, excessive charges, impounding of goods and difficulties in obtaining passports and visas.
Southern African countries can do better at infrastructure: what the choices might look like (The Conversation)
Countries in southern Africa are under a crushing burden brought about by a confluence of factors. These include the unprecedented growth in the number of young people, the remarkable speed of urbanisation and the rise of informal settlements in urban centres. The physical infrastructure needed to meet these challenges requires exceptional solutions. But these call for alternative approaches. These include deep collaboration between member states and the private sector. And the development of a robust relationship between economic and social infrastructure, on the one hand, and the underlying policy framework that drives decisions on the other.
Infrastructure projects take a long time to come to fruition - often in the order of one or two decades. This introduces a whole range of uncertainties. To better navigate uncertainty, upheaval and inevitable change decision makers should employ strategic foresight. It’s an approach that helps the development of alternative futures and options that better anticipate and prepare for new opportunities and challenges. Strategic foresight spurs new thinking about the best policies to address long term opportunities and challenges through proactive and adaptive policy innovation.
Best practice sharing set to improve land governance in EAC countries (Business Daily)
The East African Community (EAC) partner states have begun to share lessons and best practices in land policy development. This is being done within the realm of Article 15 of the EAC Market Protocol which provides that access to, and use of land and premises, shall be governed by national policies and laws of individual partner states.
The states are currently at different levels of land policy development. For instance, while South Sudan is yet to complete the formulation of its land policy, Rwanda reviewed its 2004 land policy in 2019, and moved on to the second implementation phase.
Improvement in land governance within the region is expected to make significant contribution to the realisation of some of the regional co-operation areas. These include agriculture and food security, tourism and wildlife, infrastructure, and also environment and natural resources management.
How multinational tobacco companies aid Illicit financial flows in Nigeria, others – Report (The Guardian Nigeria)
Tobacco multinationals in Nigeria and other African Countries are contributing significantly to illicit financial flows in the continent mainly through tax avoidance and evasion, a new report said. The report titled ‘Tobacco Industry and Illicit Financial Flows in Africa” was conducted by the Civil Society Legislative Advocacy Centre (CISLAC) in collaboration with Tax Justice Network Africa (TJNA) with a focus on documenting the extent of the tobacco industry’s involvement in tax avoidance and evasion in Africa.
Quoting a 2020 data from the United Nations Conference on Trade and Development’s Economic Development that Africa is now losing over $88.6 billion to IFFs, executive director of CISLAC, Auwal Rafsanjani said the illegal acts is mainly perpetrated by multinational companies. He said: “We have to show the world the negative effects and manner in which tobacco companies are destroying the health of Africans, and at same time, promote corruption in the continent. Over the years, tobacco have done a lot of harm to the health and wellbeing of Nigerians and Africans. In abroad, especially in the Western world, the tobacco consumption is reducing but in Africa the consumption rate is increasing. When we look at the major diseases that are killing people across the globe, particularly in Africa, tobacco is at the forefront.
He said the Civil Society Organisations are working with ECOWAS to highlight and show the danger and the risks for the continuation of allowing the tobacco companies to have their way. “So we suggest to governments in Africa that they need to increase the taxes for tobacco consumption, and tobacco multinational corporation. Because what they are doing in their country is not what they’re doing here Africa. In their country, they follow the rules and regulations but in Africa, those rules or regulations that guarantee the safety of the people are not even there”
“Tobacco money is made in Africa, money goes elsewhere to shareholders outside the continent. That is more reason higher taxes would benefit the host countries. We however risk having smokers spend more money on smoking than say education or food as price of cigarettes and other tobacco products go up”, he stated.
Group: Africa Losing $88.6bn to Illicit Financial Flow Annually (This Day)
Boosting intra-African trade will power post-COVID-19 recovery and foster food security (Daily Trust)
The COVID-19 pandemic is disrupting Africa’s development trajectory. It is exacting a substantial socio-economic toll and putting the survival of half of the continent’s micro, small and medium-sized enterprises (MSMEs) at risk. Four in five African businesses are witnessing a dramatic reduction in sales. As African countries restart their economies and phase out COVID-19 restrictions, the ripple effects of the Ukraine crisis increase daily. The effects are particularly acute in terms of food security, given the continent’s reliance on food imports from the region of conflict. In addition, the rising cost of fertilisers and the impact of climate change are exacerbating food shortages. These shocks have slowed progress towards achieving SDG2, which is zero hunger by 2030.
Due to the current harsh economic realities in countries, the International Monetary Fund is encouraging governments worldwide to subsidize the cost of food and energy for their poor. Such a social intervention presents a huge fiscal challenge for many African countries.
An effective solution is to boost intra-African trade, which has the potential to pave the way to food security. Africa has enough food to ensure its citizens do not face hunger; however, the challenge is how to ensure that trade contributes significantly to food security.
Didiza: Africa must improve on-farm productivity (Food for Mzansi)
Skyrocketing food prices and supply chain disruptions are cutting deeper than the early days of the Covid-19 pandemic. And if Africa wants to get back onto a path of sustainable development, it will need survival plans to overcome stressors and shocks to people’s lives and livelihoods. This was the message shared by agriculture, land reform and rural development minister Thoko Didiza during a regional policy dialogue with key stakeholders in the Southern African Development Community (SADC).
Addressing the audience, Didiza said that, at the start of the pandemic, many people were worried that the African continent would face increased food insecurity, particularly as a net importer of agricultural and food products.
Africa has an abundance of land and workforce to change its agricultural fortunes, Didiza said. She warned, however that it would not happen automatically. “We have to increase investment and spending in research and development, infrastructure, and improving land governance on the continent to support private-sector investments.” The continent needs to focus on improving agricultural productivity so that it doesn’t need disproportionately large areas for food production, the minister said.
Farming summit: Kijaji wants Tanzania to feed Africa, world (The Citizen)
The minister for Investment, Industry and Trade, Dr Ashatu Kijaji, has challenged public and private sectors to make efforts towards making Tanzania the centre of Africa and the world when it comes to food trade. She made the challenge ahead of an agriculture forum. The five-day African Green Revolution Forum (AGRF) is slated to start next Monday in Kigali, Rwanda, where President Samia Suluhu Hassan is scheduled to be a keynote speaker.
Addressing the Tanzania Agribusiness Investment Summit 2022 in Dar es Salaam yesterday, , Dr Kijaji said Tanzania’s vision was to be a global food supplier and the market leader in agro-industrialisation in Africa. She said the achievement would be realised with the public and private sectors working together to benefit smallholder farmers.
The Summit also involved Tanzania business pitching at The African Agribusiness Dealroom a year-round matchmaking platform at the African Green Revolution Forum (AGRF), which brings together capital seekers and providers.
2022 Africa Climate Week: Experts discuss Africa’s needs and priorities ahead of COP27 (AfDB)
Amid a call for urgent action to safeguard the continent from climate change, Gabon’s President Ali Bongo Ondimba opened the 2022 Africa Climate Week by highlighting his country’s efforts to boost climate action and calling for continuous collective efforts. Africa Climate Week is taking place under the United Nations Framework Convention on Climate Change and is a crucial step on the road to COP27, which will be held in Egypt in November 2022.
In her address, Patricia Janet Scotland, secretary-general of the Commonwealth of Nations, said: “If we choose, we can be the solution we need, Africa can be the answer. And this is our time. We are the first generation to suffer the consequences of climate change but we are the last generation able to do anything about it.” Egyptian Foreign minister, Sameh Shoukry, the designated president of COP27, said that Africans should work to secure climate, given the disproportionate impact climate change is projected to have on Africa as compared to other regions. He said: “African governments and all other African voices, be they civil society, youth, women’s groups, farmers, workers, academia and the thriving African private sector, should all continue to call for climate justice.”
The African Union’s Commissioner for Rural Economy and Agriculture Josefa Sacko, urged African countries to maintain a common stance as the continent tackles the impacts of climate change to achieve its long-term goals.
Africa Should Trade its Carbon Credits to Fund Renewable Energy – UNECA (Inter Press Service)
Africa needs to trade in carbon credits to reduce greenhouse gas emissions, finance the transition to renewable energy, and boost economic development, the United Nations Economic Commission for Africa (UNECA) says. Carbon credits present an opportunity for African countries – many dependent on fossil fuels for energy – to protect themselves against climate change while raising much-needed finance for the transition to renewable energy transition, said Jean-Paul Adam, Director for Technology, Climate Change and Natural Resources Management Division at UNECA.
Carbon credits are globally traded commodities or permits that allow the emission of one tonne of CO2 or one tonne of carbon dioxide equivalent gases to be traded on national or international carbon markets. These credits, which can be used to boost economic growth and attract financing for various projects, are traded on the carbon offset markets. By selling carbon credits, African countries can also tackle climate change by protecting their forests which absorb and store a measured amount of carbon. Besides, the carbon credits can also be sold as ‘offsets’ to companies unable to cut pollution to reduce emissions elsewhere. Lack of finance and capacity to trade on the global carbon markets are hurdles for African countries have to overcome in the growing global carbon markets, where the carbon pricing revenue increased by almost 60 percent last year to about $84 billion, according to the World Bank.
China’s scramble for Africa’s rare earth elements (Observer Research Foundation)
With countries around the world pledging to zero-emission goals, the global demand for rare earth minerals has amplified. Rare earths comprise of 17 minerals that are indispensable to the manufacturing of smartphones, electric vehicles, military weapons systems, and countless other advanced technologies. Africa holds the promise of large, high-grade deposits of rare earth metals. For three decades, China has managed to secure mining deals across the African continent with the availability of cheap labour and weak regulations. Currently, the global annual demand for rare earth elements (REEs) is largely met by China, which has devoted itself to increasing its presence in Africa guaranteeing ambitious energy and technological transitions. However, even with the abundant availability of rare earth deposits in southern and eastern African countries, the region has not yet reached its full potential.
Towards the end of 2010, the hunt for rare earths hit a high point as China, Japan, and South Korea showed keenness in acquiring these elements, with China raising trade-related disputes and controlling exports of rare earths and other metals. After the mining companies started realising the supply shortage, several new ventures were launched around the world, especially in Africa as the continent presented a perfect opportunity for these companies given the uncertainties in the field.
TICAD8 Highlights Value of “Human Security” in Africa (IISD)
The Eighth Tokyo International Conference on African Development (TICAD8) highlighted the importance of achieving “human security” in Africa by realizing structural transformation for sustainable economic growth and social development, a resilient and sustainable society, and sustainable peace and stability. The conference convened in Tunis, Tunisia, from 27-28 August 2022, at the level of Heads of State and Government.
Its outcome document, ‘TICAD8 Tunis Declaration,’ highlights the importance of investing in people to promote human security, which “will enhance the significant potential of Africa as a driving force of global growth.” The declaration underscores the need to address the COVID-19 pandemic and the ongoing socio-political and environmental crises by advancing action under three pillars: Realizing structural transformation for sustainable economic growth and social development, including by: promoting private sector investment in Africa; public-private partnerships (PPPs) like the Japan Business Council for Africa and the Japan-Africa Infrastructure Development Association; addressing Africa’s climate vulnerabilities; supporting Africa’s economic resilience; and attracting sound development finance; Realizing a resilient and sustainable society, to be characterized by human security and achievement of the African Union’s (AU) Agenda 2063 and the SDGs; and Realizing sustainable peace and stability, by, among other actions, promoting good governance, democracy, and the rule of law.
pdf TICAD 8: Tunis Declaration - 28 August 2022 (270 KB)
Great Expectations (The Foreign Service Journal)
The promised U.S.-Africa Leaders Summit, scheduled for Dec. 13-15 this year, will be the first head of state gathering of African leaders and a U.S. president since 2014, and marks only the second time Washington has accorded this level of attention to a partnership dialogue with the region. Though the United States has an annual trade forum through the African Growth and Opportunity Act, convening trade ministers and a number of bilateral strategic dialogues with key country partners at the foreign minister level, these gatherings don’t confer presidential-level priority.
The hope now is that the summit will usher in more consistent head-of-state engagement, treat Africa as a strategic priority for the United States and give a dynamic boost to mutually beneficial U.S. engagement on the continent.
Prior to the COVID-19 global pandemic, Africa was home to six of the 10 fastest-growing economies in the world. The United States has a growing two-way trade relationship with the continent that exceeded $64 billion in 2021, but this only represents 1 percent of U.S. trade, and there is plenty of room to grow America’s economic partnership with Africa as the continent continues to grow and attract global trade and investment. The continent that gave rise to mobile money and digital payments set record highs in 2021 for venture capital (VC) investments in its fintech sector, according to Partech’s 2021 Africa Tech Venture Capital Report. That report showed that African VC investments tripled from the prior year, grew faster than any other region and are growing three times faster than global VC investment. Africa also has an exciting new trade bloc, the African Continental Free Trade Area (AfCFTA), that unites the continent into a single giant market and promises to reduce red tape, harmonize the regulatory burden, and significantly diminish tariffs and customs procedures.
This ambitious project, which entered into force in May 2019, is in its first phase of implementation, with negotiations underway to set the terms for trade in goods and services, and second-phase talks also in progress to address investment, intellectual property rights and competition policy, among other things. The third phase will include the digital economy and a special protocol on women and youth. As of the Tralac Law Centre’s May 2022 status update, no trade had yet taken place under the AfCFTA regime, but there is significant interest in supporting its successful implementation.
New boost for Arab-Africa trade? (African Business)
While there has always been a strong desire to boost Arab-Africa trade, the rhetoric has largely failed to match the delivery. Arab-Africa trade has been static at 17% of the continent’s total trade for the last seven years, with China and the EU by far its two largest trading partners. Continental trade with its Arab neighbours according to Afreximbank is estimated at a mere $80bn in 2021. But the signs are that the trade and investment winds of change are blowing over the continent from the north-eastern enclave of Arab countries centred around Egypt, the new gateway to sub-Saharan Africa (SSA).
In an interview, Oramah candidly laid out the scale of Africa’s financing needs and the potential role of Arab financial muscle in reducing this gap. “Africa’s trade finance gap remains significantly high at over $90bn,” he said, “and the participation rates of African banks in the trade finance space have been declining at a fast pace. “The trade insurance and guarantee markets remain underdeveloped to provide the kinds of protections that traders and commercial banks would require to provide financing for cross-border trade. Africa is not adequately supplied as financial institutions are not able to meet the increasing opportunities that abound because of not having sufficient capital.”
The game changer could be the landmark multi-billion-dollar Arab-Africa Guarantee Fund (AAGF) approved by the AATB Board in March, which is due to start operations in 2023.
Global economy
The first-ever AfriCaribbean Trade and Investment Forum (ACTIF2022), being held at the Lloyd Erskine Sandiford Centre in Bridgetown, Barbados, from 1 to 3 September
The theme for ACTIF2022 is ‘One People, One Destiny: Uniting and Reimagining Our Future’. Presentations and panel sessions will address key topics around deepening the trade and investment linkages between Africa and the Caribbean. These include accelerating industrialisation and manufacturing in Special Economic Zones and Industrial Parks; financing trade and investments; opportunities across the cultural and creative industries; leveraging the power of the African Continental Free Trade Area; improving logistics to promote tourism, trade and telecommunications; improving agricultural productivity, agribusiness and food security; healthcare and life sciences; accelerating private sector trade and investment; creating opportunities for youth and SMEs; and building Africa-Caribbean value chains.
ACTIF2022 has been structured to provide an important opportunity for the Caribbean and African business communities to establish new commercial and strategic relationships to expand trade between the two regions and to source necessary inputs for the design and manufacture of high-value products. It will also enhance Government-Business relationships between Africa and the Caribbean and increase inter-regional trade and investment leads through effective business matchmaking.
Brics reserve currency (Observer Research Foundation)
Whilst Russia and China are leading de-dollarisation initiatives due to their geopolitical rivalry with the US, India, Brazil, and South Africa have supported BRICS’ statements on altering the global financial system for their own interests. In his recent address to the BRICS Business Forum, Russian President Vladimir Putin stated that the minilateral member states were working on developing a new global reserve currency. It is presumed that this global reserve currency, containing the national currencies of the BRICS member states, will be an alternative to the International Monetary Fund’s Special Drawing Right (SDR). At a time when Russia is facing unprecedented global sanctions in the wake of the Ukraine invasion, Putin’s announcement has underscored the importance of recognising the heterogeneous motives of the BRICS nations to not only facilitate intra-BRICS trade in local currencies, but also firewall their global financial interests.
China committed to wider opening-up in services trade, promoting global economic recovery (China.org.cn)
As the 2022 China International Fair for Trade in Services (CIFTIS) kicked off Wednesday in Beijing, the country has shown the world its unwavering commitment to wider opening-up in the services trade sector and a firm determination to further promote global economic recovery. Themed "Cooperate for Better Development, Innovate for a Greener Future," the 2022 CIFTIS includes a global services trade summit, exhibitions, forums, new product and technology releases, business promotions and discussions, and supporting activities.
While delivering a keynote speech at the Summit of 2022 CIFTIS Wednesday, Chinese Vice Premier Han Zheng called for efforts to promote the healthy and sustainable development of services trade to make a greater contribution to the recovery of the global economy.
Related News
tralac Daily News
Local news
Trade Statistics for July 2022 | South African Revenue Service
The South African Revenue Service (SARS) today releases trade statistics for July 2022 recording a preliminary trade balance surplus of R24.76 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN). The year-to-date (01 January to 31 July 2022) preliminary trade balance surplus of R156.71 billion is a deterioration from the R285.13 billion trade balance surplus for the comparable period in 2021. Exports increased by 24.3% year-on-year whilst imports increased by 41.6% over the same period.
South Africans look abroad as supply chain challenges increase (Engineering News)
Local container shipments for export declined by 17.5% year-on-year during the second quarter of the year as port activity was impacted by international supply chain disruptions, load-shedding and flooding in KwaZulu-Natal, PwC South Africa’s ‘South Africa Economic Outlook’ report for 2022 states. In the eighth edition of the ‘South Africa Economic Outlook’, the firm focused on local companies finding growth opportunities abroad, ranging from exports to direct investment deals.
‘Unfair’ trade bans threaten agriculture jobs in South Africa (Farmer’s Weekly SA)
The lack of action taken to have agricultural import bans imposed by Botswana, and more recently Namibia, lifted is creating a feeling among South African fresh produce farmers that government has failed them. The bans included South African exports of tomatoes, potatoes, beetroot, cabbages and peppers, among other commodities. Christo van der Rheede, executive director of Agri SA, told Farmer’s Weekly that these bans did not stem from any wrongdoing on the part of South African farmers, but rather because these countries wanted to “protect their own local production”, even as they continued to export their produce to South Africa.
As such, the trade bans were in direct violation of the Southern Africa Customs Union Agreement, aimed at facilitating free trade among countries in the region.
SMME export development and promotion support part of industrialisation, competitiveness - DTIC (Engineering News)
The Department of Trade, Industry and Competition (DTIC) provides support to small, medium-sized and microenterprises (SMMEs) in terms of export readiness, export development and export promotion as part of efforts to drive industrialisation, development and competitiveness. The DTIC hosted a webinar on August 30 to brief SMMEs about the support the department provides and the benefits available to companies developing exports, including improving the resilience of enterprises, supporting diversification of markets and products and building competitiveness.
“We have accepted that trade is an important engine of economic growth and development. We are mindful that many regions in the world have been able to lift many people out of poverty through the development of trade and exporting,” said DTIC export development, promotion and outward investments deputy director-general Lerato Mataboge. “In driving industrialisation, it is clear that an exporting economy and export-led growth are needed. Trade and exporting generate jobs and income opportunities, and help to build competitiveness in participating enterprises that have to compete on a global stage,” she said.
Warning over meat prices in South Africa (BusinessTech)
The Bureau for Food and Agricultural Policy (BFAP) has published its food inflation brief for July 2022, highlighting the food items that have recorded the biggest price hikes in South Africa. While food price inflation outstripped headline inflation again in July, the group said that it expects price increases to slow towards the end of the year. However, if measures put in place to curb foot and mouth disease in cattle are extended, meat prices could shoot up, it said.
Modern technology key to boosting Kenya’s tea output: experts (Xinhua)
Kenyan tea farmers and traders should embrace modern technology to boost production, African experts said Monday. Ebrima Sall, the executive director of Trust Africa, said that all stakeholders stand to reap maximum profit from the cash crop once modern technologies are adopted. “It has reached the time that old machinery that has been used for centuries be abandoned to help stakeholders improve efficiency in tea production and be able to supply the market in good time,” Sall said at a forum in Nairobi, the Kenyan capital.
Sall noted that with the adverse effects of climate change, players in the tea value chain must embrace sustainable agricultural systems. He called upon key stakeholders to borrow and implement good practices that have been adopted by tea producers in the Asian continent.
‘Strong agro processing base critical in transforming Africa’ (Chronicle)
INDUSTRY and Commerce Minister, Dr Sekai Nzenza, has said the African Continental Free Trade Area (AfCFTA) presents huge opportunities for the agro-industrial sector and called on it to ramp up output for that market. In a virtual address on Friday during a United Nations Industrial Development Organisation (UNIDO) Forum on Building Resilient and Sustainable Agro-Industries to enhance Africa’s growth potential, the minister said a strong regional agriculture processing base was critical in transforming the continent. She said Zimbabwe, guided by the National Development Strategy (NDS1), was already forging ahead in building a resilient economy by prioritising value chain development with agriculture given critical focus.
The sector is the mainstay of the country’s economy and provides up to 60 percent of raw materials for the manufacturing sector. In 2021, the agricultural sector contributed 17 percent to the gross domestic product (GDP) and the Government expects the growth of the sector to aid import substitution.
Insecurity, congestion, dredging, others listed as challenges to port investments (The Guardian Nigeria)
Insecurity, infrastructural deficiency, dredging, and congestion have been listed as factors halting seaport investments in Nigeria. This was disclosed in a statement by Welcome2Africa International (W2AI) on the Nigeria Seaports Investment Forum (NSIF2022), which would be held in Lagos on September 28 – 29. In an effort to improve Nigeria’s global trading ecosystem, W2AI, in partnership with Zenith Carex International Limited in the summit, themed “Repositioning Nigeria’s Seaports for Investment and Trade Attractiveness”, would address major bottlenecks like congestion, technological advancement, infrastructural deficiency, dredging, port equipment, security, logistics, and training that represent opportunities for investors at the seaports.
It would also address issues on policy, investment, international trade with Europe, and the African Continental Free Trade Agreement (AfCFTA).
‘Local manufacturing still dominated by food, beverages sector’ (The Guardian Nigeria)
Worried by the dominance of a segment of the productive sector in the economy, the Manufacturers Association of Nigeria (MAN) has emphasised the need for government intervention in other critical subsectors to diversify the country’s manufacturing base. Indeed, the President of the Manufacturers Association of Nigeria (MAN), Mansur Ahmed, while speaking at a forum for the media, charged the government to adopt necessary measures to diversify the manufacturing sector.
Ahmed explained that while the Federal Government was taking measures to diversify the economic base of the country, using the proceeds from oil and gas, additional efforts should also be made to focus on the manufacturing sector to produce what is needed.
“As the government is diversifying from oil and gas to agriculture, the manufacturing sector needs to diversify to produce goods that are required. The government must look at the entire sectors of the economy and also encourage new investments. There is no doubt that the Nigerian manufacturing sector is not producing enough even though we are in a position to do so. Our manufacturing is not positioned to produce for export hence the need for encouragement. So, while we are thinking about diversification, we must do it horizontally and vertically.
“As we go into the Africa Continental Free Trade Area Agreement, it is an opportunity for Nigeria because when you go around Africa as a whole, apart from South Africa, maybe Egypt and Morocco, there is a lack of capacity. Therefore, we need to build the capacity of our manufacturing sector to produce more and improve the quality of our products.”
The Botswana-South Africa freight rail link to be revamped in 24 months (Construction Review)
The Botswana-South Africa freight rail link is to be rehabilitated in the next 24 months in order to enable landlocked Botswana to transport mineral resources to the Ports of Richards Bay and Durban. The 126 kilometer Botswana-South Africa freight rail link rehabilitation project will be carried out by the rail companies of South Africa and Botswana, Transnet Freight Rail and Botswana Rail.
Minister of Transport and Communications, Dorcas Makgato confirmed the reports and said the project is aimed at linking coal deposits in both areas with South African heavy haul lines and also become a gateway to South African ports for the coal market and link Botswana’s mines to the Transnet Freight Rail network. “In order to unlock regional growth, a corridor approach is a must. The proposed link between Mmamabula in Botswana and Lephalale in South Africa would stimulate the economies of Botswana and South Africa,” said Dorcas Makgato.
Nigeria’s N20.4 trillion imports in 2021 not enough to lift economy – Economists (Nairametrics)
Despite the hues and cries about Nigeria being an import-dependent economy over the years, and importing goods worth over N20 trillion last year alone, economists say that Nigeria is importing too little compared to its African and Asian peers. Nigeria’s imports were worth N20.84 trillion in 2021, representing an increase of 64% compared to N12.7 trillion recorded in the preceding year, with Nigeria’s Petrol exports being the largest at N3.97 trillion, followed by Durum wheat – N1.29 trillion and used vehicles – N770.13 billion. But imports make up less than 10% of GDP, and Nigeria’s largest import being refined Petroleum (which should reduce significantly once the Dangote Refineries and Port Harcourt refinery renovation come onboard).
According to Wale Smit, Nairametrics Columnist and Financial Analyst, “Nigeria’s import relative to the size of the economy is not large, relative to our export earnings which we need to finance those imports is not enough.” Olumide Adesina, Financial Market analyst at Quantum Economics said, “The major challenge is that the biggest economy in Africa lacks significant purchasing power for large imports and production potential to increase exports.
Privatisation is not a single process: Egypt’s pursuit of a bigger role for the private sector (Ahram Online)
While it is evident that the recent government and central bank reshuffle will lead to profound changes in the economy and in government policies, it would be premature to commit to their sound and effective implementation. Egypt has never been short of plans and strategies, but they have often ended up hitting the wall of implementation.
The state has set specific objectives and clear indicators for the next three years and is hastening to implement them. These goals include doubling the role of the productive activities of the private sector, planning for a boom in exports to reach $100 billion a year by 2025, and increasing foreign direct investment (FDI) to $40 billion. These three objectives, closely interrelated, require a series of difficult and interdependent measures that will represent challenges to their achievement.
Amid Energy Crisis, EU Plans To Help Gas-Rich Mozambique Boost Security (carandbike)
The European Union is planning a five-fold increase in financial support to an African military mission in Mozambique, an internal EU document shows, as Islamist attacks threaten gas projects meant to reduce the EU’s reliance on Russian energy. The energy squeeze due to the Ukraine war has added impetus to Europe’s scramble for gas off Mozambique’s northern coast, where Western oil firms are planning to build a massive liquefied natural gas (LNG) terminal.
Mozambique has been grappling with militants linked to the Islamic State in its northernmost gas-rich province of Cabo Delgado since 2017, near LNG projects worth billions of dollars.
A southern African military mission and a separate intervention by troops from Rwanda have between them managed to contain the militants’ spread since being deployed last year. But “the situation remains very volatile and smaller-scale violent attacks have continued in various districts,” the EU document dated Aug. 10 said.
The paper prepared by the European External Action Service (EEAS), the EU’s de facto foreign ministry, recommends 15 million euros ($15.3 million) of EU funding to 2024 for the mission of the Southern African Development Community’s (SADC), a bloc of 16 African nations of which half a dozen sent troops to Mozambique.
African trade and integration
Experts Believe ETCs Will Make African Trade Competitive (News Ghana)
Export Trading Companies (ETCs), when established in Africa, are expected to assist in ameliorating the varied issues that make exports from this region uncompetitive. Speaking on Eye on Port, some trade experts believe the establishment of ETCs will provide solutions to major supply chain issues that make trade expensive. “ETCs will be expected to focus on the export of diverse, non-traditional value added goods and services to many markets. ETCs engage in other ancillary functions, warehousing, local transportation, shipping, insurance and consciously engage SMEs and other suppliers in the production and manufacturing value chain. They will provide much needed support to these value chain producers in terms of production know-how, risk management and many more. Due to the fact that ETCs by design are large institutions, they will be able to leverage on economies of scale to reduce impact of high transactional cost thus increasing competitiveness,” Kayode Sufiano, an ETC Specialist and Organizational Strategist from Nigeria averred.
Dr. Olufemi Adebiyi, an SME Specialist and Organizational strategist, also from Nigeria stated that the domination of trade landscape by primary commodities and aggregate level of output remains why Africa’s contribution to global trade is low. He said the promotion of manufactured goods and stimulation of production will be the contribution of ETCs.
Key Highlights From The 9th Meeting Of The AfCFTA Council Of Ministers (Mondaq)
On 25th and 26th July 2022, the AfCFTA Council of Ministers met in Accra, Ghana for the 9th Meeting of the AfCFTA Council of Ministers responsible for trade. During this meeting, the AfCFTA Secretariat reported major strides towards making trade under the AfCFTA fully operational. The key highlights of the meeting included: The AfCFTA Rules of Origin Manual was drafted in accordance with Article 42 of Annex 2 of the Protocol on Trade in Goods; The AfCFTA e-Tariff Book was introduced as part of the AfCFTA Secretariat’s digitalisation and trade facilitation efforts; The AfCFTA Initiative on Guided Trade aims to gather countries among the 29 that have already submitted their tariff schedules to commence trading with the direction of the Secretariat.
Zero tariffs in near future - but forex shortages hobble trade in Africa (FreshPlaza)
Dr Mmatlou Kalaba’s IFPA Cape Town conference presentation on the as yet little-understood Africa-wide free trade system, drew much interest coming as it did in the same week that Botswana’s closure of its borders to South African vegetables (a practice also followed by fellow Southern African Customs Union member Namibia to protect its domestic industry) made national headlines.
The mostly South African delegates know the intra-African trading environment well, as one conference-goer and apple exporter shared during Dr Kalaba’s presentation. Apples will be amongst the top fresh produce from SA to benefit early or upon entry into force, Dr Kalaba said, because South Africa already has a presence in most markets on the continent, including those maintaining high tariffs.
“Our exports into Africa could have doubled but instead we’re decreasing our exposure in Africa due to currency: we cannot get access to enough Euros and US Dollars from central banks,” the exporter maintained. Dr Kalaba agreed on the difficulties of the different monetary systems on the continent, a matter on the mind of the AfCFTA Secretariat too, he noted.
DG Okonjo-Iweala — “enormous scope” for Africa to benefit from trade and investment (WTO)
Speaking at the 8th Tokyo International Conference on African Development (TICAD) in Tunis, DG Okonjo-Iweala noted that Africa is a large, growing and — thanks to the African Continental Free Trade Area (AfCFTA) — increasingly integrated market of 1.4 billion consumers and entrepreneurs. However, the COVID-19 pandemic has set Africa back several decades on poverty reduction, education, and job creation and brought back familiar problems related to debt distress, she said.
DG Okonjo-Iweala urged global solidarity with Africa in the form of financial support and debt restructuring but also by encouraging investment and improving trading conditions, including through free trade agreements and special and differential treatment.
Africa received its highest proportion of private sector investment in infrastructure in 2020, sending an important signal to governments and investors. African Development Bank Vice President for the Private Sector, Infrastructure and Industrialization, Solomon Quaynor, underlined this point during a webinar organized by the African Development Bank and the Japan International Cooperation Agency (JICA) on 24 August.
Quaynor said the greater private sector investment came as most African governments contended with the Covid-19 pandemic, limited fiscal space and high debt-to-GDP ratios. “Private sector investment into Africa’s infrastructure rose to $19 billion in 2020, representing 23%, the highest since 2016. This counter-cyclical role played by the private sector shows the importance of its growing role in infrastructure financing in Africa,” he said in remarks at the close of the webinar, themed Private Sector Infrastructure Development Opportunities in Africa.
Japan and AfDB team up to promote private sector (ICLG)
The Japanese government and African Development Bank have signed a USD 5 billion financial cooperation agreement to support Africa’s private sector. The agreement, announced on 28 August during the Eighth Tokyo International Conference on African Development (TICAD8) in Tunis, forms part of the fifth phase of the Enhanced Private Sector Assistance for Africa (EPSA) initiative, developed by Japan and the bank, between 2023 to 2025 (EPSA 5).
EPSA 5 will concentrate on the three areas of electricity, connectivity and health, further recognising the significance of food security by adding agriculture and nutrition as a fourth priority area for Africa.
The Conference of Heads of State during the 60th Summit held in December 2021 approved the ECOWAS Regional Infrastructure Master Plan. The Master plan is for the timeframe 2020-2045 and comprises 201 regional projects at an estimated cost of 131 billion USD.
Consequently, the ECOWAS Commission organized a sensitization workshop from 29th – 30th August, 2022 in Accra, Ghana to present the Master plan to the Ministries in charge of Transport from ECOWAS Member States as well as Development Partners such as ECOWAS Bank for Investment and Development and Spanish Co-operation for International Development (AECID) to reflect on resource mobilization, coordination and implementation of the Masterplan, in particular, in the transport sector.
5th Forum on China-Africa Media Cooperation successfully held in Beijing (KBC)
From August 25 to 26, 2022, the 5th Forum on China-Africa Media Cooperation was held in Beijing, China, in a combined online/offline mode. This year marks the 10 anniversary of the Forum on China-Africa Media Cooperation. In deep appreciation to look back upon the fruitful results, both sides have achieved over the past decade. Government departments of both sides have established regular effective communication channels to enhance understanding of each other’s policies and ideas.
The media on both sides have been upholding the spirit of friendly cooperation and working continuously to safeguard fairness and justice, telling stories about China-Africa cooperation in the new era and shouldering responsibilities to advance global development, promote common values of mankind and actively create an international public opinion atmosphere of cohesive development and cooperation.
Chinese and African media will also promote innovation convergence and deepen cooperation in areas of digital technology and digital economy to strengthen exchanges, share opportunities, and improve digital governance capabilities.
Global economy
China’s strengthening economy a good sign for global trade recovery (Xinhua)
China’s strengthening economic recovery is an important development as the world struggles to emerge from the economic hardships caused by rising prices, eroding food supplies, and uncertainty amid the Ukraine crisis, a leading Italian global business and management expert has said. The impact of China on the world’s economy is of the utmost importance and should absolutely not be underestimated, “especially for economies like those in Italy and Germany, which are major exporters,” he said, adding “it’s the same for Europe in general.” The latest news from China has been positive. The NBS said that China’s economy in July “sustained the momentum of recovery” despite the “increasingly complicated and challenging international environment as well as frequent and sporadic domestic outbreaks of Covid-19.”
From war and inflation to food and cargo charts chronicle volatile year (IMF Blog)
Background Note on Fossil Fuel Subsidy Reform (IISD)
As fossil fuel subsidies are expected to swell following rapidly rising energy prices, IISD offers a background note on the rationale and international initiatives for reforming fossil fuel subsidies. In addition to providing an overview of the environmental and trade effects of fossil fuel subsidies, it also examines international pledges and steps already taken by governments aiming to rationalize and reduce such support, including through the initiatives that take place through the G7, G20, Asia-Pacific Economic Cooperation, United Nations Framework Convention on Climate Change, and the new trade and environment initiatives at the World Trade Organization.
Related News
tralac Daily News
Local news
SA must ease market access barriers for optimal trade, says analyst (SAnews)
Until South Africa can find a way of easing market access barriers, the country will not reach the most optimal levels of trade. These are the sentiments of Khaya Sithole, a prominent accountant and economics commentator, speaking during a webinar on the impact of outbound trade shows on SMMES in South Africa. It was hosted by the Government Communication and Information System (GCIS) in collaboration with the Department of Trade, Industry and Competition on Tuesday. The country and the African continent still suffer from a “trade deficit”. “We simply do not do enough trade amongst ourselves. The consequence of [this] is that we are really not cultivating that dividend associated with the type of population sizes that we have,” he said.
Digital future of banking inevitable, imminent, report posits (Engineering News)
Two-thirds of South Africans expect the country’s banks to make a full transition to digital banking within five years, a new report titled ‘The Future of Retail Banking in South Africa’ states. The report was introduced at an event held in Sandton by Boston Consulting Group (BCG) in partnership with Discovery Bank. Key findings include that South African retail banking has the potential to become fully digital in just five years if banks provide easy-to-use, secure channels and make human assistance accessible when needed. Moreover, it notes that South Africans are further ahead of the technology curve than their banks.
State bets on shipping, logistics sector to drive regional growth (The Standard)
Kenya’s shipping, transport and logistics sectors have been cited as key catalysts that will help spur the economic fortunes of the East African Community (EAC). This is as the country positions itself to reap big from the entry of the Democratic Republic of Congo (DRC) into the regional economic bloc. The accelerated investment in the intermodal transport systems - majorly road, rail and port infrastructure affirms this strategy as Kenya eyes increased trade and commerce across the region.
Speaking at the Port of Mombasa, EAC Principal Secretary Kevit Desai, who met stakeholders from the shipping, manufacturing, transport, and logistics sectors for an engagement session, said efficiency and competitiveness of port facilities is crucial since they are the engine of the logistics and supply chain sector. The principal secretary anticipated increased demand for the services in the region as the population of the EAC crosses the 300 million mark following the entry of DRC into the trading bloc.
Mombasa firm tackles Kenya’s e-waste menace (Business Daily)
The increasing use of technology has seen thousands of information technology (IT) devices finding their way into Kenya, and with poor disposal, they put lives at risk and contribute to global warming. Though Kenya is a signatory to international treaties regulating and banning the dumping of damaged and end-of-life electronics, it still imports large quantities of these goods that are considered too inefficient to be sold in the country of origin.
After a few months of use, the devices become obsolete, and most users dispose of them at dumpsites without considering the dangers of the e-waste and the risks they will incur if information stored in the devices lands in the wrong hands. Launched in 2019 before Covid-19 struck, Close the Gap Group seeks to make use of e-waste and refurbish devices to create income for young people while conserving the environment.
Kenya generates an average of 3,000 tonnes of e-waste each year from devices such as computers, monitors, printers, mobile phones, fridges, and batteries, said Timothy Wachira, operations manager at the Circular Economy HUB in Jomvu, Mombasa.
First consignment of fresh Avocados from Kenya hits Chinese market (Capital News)
he first consignment of Fresh Avocados from Kenya has hit the Chinese market. Kenya’s Ambassador to China Muthoni Gichohi graced the official hand-over ceremony of the first batch of Kenya’s fresh avocado export to China which also marks the very first export of such avocados from Africa. The event took place in Beijing, China. The Ambassador applauded the efforts made by the two Governments towards this noble achievement.
She affirmed Kenya’s commitment to supporting the business communities in both countries as they look forward to enhancing trade facilitation as well as market access of their products and services to China.
“Kenya aims to export over 100,000 tonnes of avocados. The 1.4 billion population in China is a huge market for Kenya not only for avocados but also for other fresh produce such as mangoes and bananas,” said Dr. Wilfred Marube, Chief Executive Officer, Kenya Export Promotion and Branding Agency.
This journey kick-started in the year 2018 when China hosted the first vibrant China International Import Expo (CIIE) in Shanghai.
Tanzania economy to expand by 15trn/- in 2022, says FocusEconomics (IPP Media)
The SSA forecast report by the Spain based FocusEconomics shows the Tanzanian economy will also expand to 200trn/- ($81 billion) next year and 222.2trn/- ($87.6 billion) in 2024, with Nominal GDP annual variation (without inflation adjustment) of 13.0 percent and 11.1 percent respectively. The consensus report forecasts real GDP annual growth of 4.9 percent in 2021, 5.3 percent in 2022 and 5.6 percent in 2023.
FocusEconomics economist responsible for Tanzania Marta Casanovas said in a report unveiled to The Guardian yesterday that GDP growth is set to accelerate to one of the strongest rates in the region this year. “The government’s business-friendly stance is driving foreign investments, which will lead to large infrastructure projects, bolstering employment and spending,” she commented.
The economist said the recently approved International Monetary Fund (IMF) loan will also provide support the growth of the economy, which accounts 4.4 percent share of total SSA economy, the fifth largest.
The quarterly economic bulletin for the quarter ending June, published by Bank of Tanzania (BoT) yesterday shows the economy continued to experience spillover effects of high commodity prices in the world, as well as tight financial conditions and monetary policy by central banks in advanced economies.
“These global challenges have been caused by disruptions of global supply chain following the outbreak of war in Ukraine in February 2022,” BoT says. As a result, BoT says in the bulletin, there was an increase in the general price level in the quarter ending June 2022, pushing inflation rate to 4.5 percent in July this year.
Nigeria to develop strategy to boost e-commerce value chain (Voice of Nigeria)
The Nigerian government is currently working to establish a strategy on e-commerce that will boost the growth of the sector. The Nigerian Minister of Industry, Trade and Investment Mr Adeniyi Adebayo revealed this over the weekend in Abuja at a stakeholders dialogue on e-commerce and digital trade policy for Nigeria. The minister stated that there is no better time than now to diversify the Nigerian economy away from the oil sector by building a dynamic, profitable and efficient non-oil sector to reposition the economy on a sustainable growth path.
“Nigeria is yet to fully harness the inherent opportunities in the e-commerce value chain, largely due to inadequate investment, coupled with inadequate information on the opportunities in the sector and the inability of Government to provide the required enabling environment.” “As such, government has identified e-commerce as a major priority programme that will play a critical role in the promotion of commodity trade, especially with the realities of the unprecedented Covid-19 global pandemic,” he explained. “The Federal Government is also committed to developing an e-commerce strategy in line with the Federal Government’s Post COVID-19 recovery plan, to encourage investment in e-commerce value chain,” he said.
Africa’s Biggest Oil Producer Struggles Despite Price Bonanza (Bloomberg)
Nigeria’s economy expanded faster than expected in the second quarter, but its key oil sector is languishing despite booming prices. Output from Africa’s largest crude producer fell to 1.43 million barrels a day in the three months through June, the lowest quarterly production since 2016, according to the nation’s statistics agency. The fifth consecutive quarter of declining output comes as rampant theft and vandalism prevent Nigeria from fully benefiting from the oil bonanza that followed Russia’s invasion of Ukraine.
African trade and integration
AfCFTA Secretariat Unveils Required Tools And Instruments For Trade (News Ghana)
The AfCFTA secretariat has revealed that the continent of Africa is now ready to trade under the continental trading policy following the unveiling of the e-tariff book, rules of origin manual and the AfCFTA website on which all necessary information can be accessed to trade under AfCFTA. Speaking to the Single African Market Programme, the Principal Communications Advisor of the AfCFTA Secretariat and spokesperson to the Secretary General of the AfCFTA Secretariat, Ms. Grace Khoza said “ for the first time we’ve got a website that we ourselves are very proud of, it’s looking very sleek and clean but importantly it’s got the right information that as I indicated will empower each and every citizen on this continent who wants to access and know what we are doing as a secretariat.”
She explained that in addition to the AfCFTA website, tools and instruments such as the e-tariff book, the rules of origin manual and other documents that are intended to facilitate trading like the certificate of origin are all on the website.
Trade Law Centre Holds Masterclass For Senior And Experienced Trade Journalists In Africa On (News Ghana)
Speaking to the Single African Market, Executive Director of Trade Law Center (tralac) said in Line with its mission to build trade governance capacity in Africa, supporting trade and regional integration for just and sustainable development outcomes, at national, regional, continental, and multilateral levels, tralac’s first AfCFTA Masterclass for Selected Senior and experienced Trade Journalists across Africa will make a lot a difference in information sharing across the continent.
“This is the first masterclass for senior and experienced trade journalists across the continent, to have journalists who have been reporting on the AfCFTA consistently for quite some time for not only conversations about the AfCFTA and a catch up with the latest development and in particular the announcement by the council of Ministers at the latest meeting at the end of July on the start of facilitated and guided trade which we expect to begin before the end of September but also in using different media platforms opportunities and communicating across so many different channels,” Ms. Trudi Hartzenberg, Executive Director of the Trade Law Center (tralac) explained.
The selected Senior Trade Journalists on the continent were update on the current state of the AfCFTA among others. The journalists were also taken through methods and tools in reporting on AfCFTA.
Pan-African Payment and Settlement System drives Africa’s banking integration (African Business)
Hopes of greatly boosting intra-African trade rest on the implementation of the African Continental Free Trade Area (AfCFTA). It is hoped that the initiative will reduce both tariff and non-tariff barriers to African cross-border trade, encourage the construction of much-needed logistics infrastructure and above all, create a new mindset, that potentially huge untapped markets lie on the doorsteps of every African business. The role of the banking sector in this process is often overlooked but it will be a central driver of this change and simultaneously be heavily impacted by it.The AfCFTA is a hugely ambitious undertaking. It seems an obviously attractive concept, given that 54 out of 55 African states have thus far signed the AfCFTA treaty, with only Eritrea yet to put pen to paper.
The AfCFTA came into force in January 2021 but it is important to note that its creation is a process not an event, with national trade and investment policies gradually being harmonised. Universal banking regulations are ultimately envisaged but this will be a long process and governments will be understandably keen to promote and defend the interests of their own domestic banks.
Perhaps the biggest effect of the AfCFTA on the African banking sector is the Pan-African Payment and Settlement System (PAPSS), a centralised payment and settlement system that was launched by Afreximbank with the support of the AfCFTA Secretariat last September.
As a continent-wide platform for processing, clearing and settling intra-African payments, it is designed to enable individuals, businesses and governments to make instant cross-border payments in the more than 40 different African currencies, thereby reducing the need for US dollars and other hard currencies and so, simplifying cross-border trade. Acquiring hard currency can be a particular challenge for small and medium-sized enterprises (SMEs).
Rethinking maritime trade in Africa (Businessday)
Any maritime nation can use the sea to transport goods and for other civilian purposes such as fishing. More recently, exploitation of resources above or below the seabed has generated significant debate among naval thinkers. When one comes in contact with the term “sea power” for the first time, it may connote military strength at sea. However, this is not entirely true because sea power has both the naval component and economic aspect. It is an aggregate of the nation’s naval force and the maritime industry. From history, most developed countries were founded on sea power.
Like most other developing countries, African nations have raw materials, but they are not seriously engaged in trade with one another and the rest of the world. Perhaps, that is why Africa, with a population of over one billion people and France, where there are just about 65 million people, have almost the same Gross Domestic Product (GDP).
Africa has to rely heavily on ships and ports to service its intercontinental trade, but Africa’s shipping and ports do not, in most cases, match global trends and standards. Africa’s minimal integration in world trade within the context of sea power results from inadequacies in its maritime sector, particularly in shipbuilding, human capacity, merchant and fishing fleet, and port facilities.
Skills Gaps Holding Back Open Skies For Africa – Aviation Experts (KT Press)
Aviation experts are currently meeting in Kigali to kick start a process on implementing a Single African Air Transport Market (SAATM) which has seen a low uptake on the African continent. Primarily, the goal of the SAATM was to fully implement the 1999 Yamoussoukro Decision. This means that all participants agree to lift market access restrictions for airlines, remove restrictions on ownership, grant each other extended air traffic rights (first through fifth freedoms, not affecting cabotage rights), and liberalise flight frequency and capacity limits.
In order to understand the reason behind the delays and challenges in implementing the SATM, the Common Market for Eastern and Southern Africa (COMESA) Secretariat on behalf of other Regional Economic Regions (EAC, IGAD, IOC and SADC) and the European Union (EU) signed a Grant Contribution Agreement amounting to €8million for the Support to Air Transport Sector Development (SATSD) in the Eastern Africa, Southern Africa and Indian Ocean (EA-SA-IO) Region. The outcomes of the SATSD baseline study and training needs analysis were presented this August 29, 2022 at a validation workshop showing the biggest challenges in implementation of open air space agreement.
Dr. Eyden Samunderu, a leading aviation professional expert said that “One the major findings being lack of investment in specialized and continuous training for aviation staff and many governments are not willing to invest in this”.
How protectionism hurts Africa’s aviation industry (The New Times)
ECOWAS Bank’s West Africa Outlook Pushes Intra-Regional Investment (Energy Capital & Power)
On September 1-2, leading policymakers and dignitaries, investors, analysts and executives will convene at the world-renowned CICAD venue in Dakar for West Africa’s foremost energy forum – MSGBC Oil, Gas & Power 2022. As this distinguished assemblage of speakers and delegates converge on the Senegalese capital, thoughts turn towards the future of West African energy. The release of the West Africa Development Outlook (WADO) from the ECOWAS Bank for Investment and Development (EBID) shines out all the stronger as a science-backed guiding beacon for upcoming discussions and foretaste of the regional agenda that will shape MSGBC 2022’s highly-anticipated keynote sessions and panels.
African countries vow to increase fish production through collaboration (SeafoodSource)
Djibouti-based Intergovernmental Authority on Development (IGAD), an eight-country trade bloc in Africa comprising of governments from the Horn of Africa, Nile Valley, and the African Great Lakes, is stepping up efforts to synchronize Africa’s sustainable fishing activities to achieve a 3 million metric tons (MT) of production per year, up from the current 1 million MT. Representatives from seven of the eight IGAD members met in Addis Ababa, Ethiopia, between 16 and 18 August, 2022, under the IGAD Fisheries Coordination Platform. The participants reviewed sustainable fisheries projects in each of the countries, and resolved to improve ongoing country-level measures to support alignment of “the actions promoting sustainable fisheries in the Horn of Africa.”
Ecofish, a EUR 50 billion (USD 50 billion) program promoting the sustainable management of inland and marine coastal fisheries resources in Eastern Africa, Southern Africa, and the Indian Ocean, is currently spearheading several fisheries projects in IGAD member-states – including those on Lake Victoria, Lake Tanganyika, and marine seafood initiatives along the Indian Ocean coastline. In Kenya, Ecofish is involved in a joint WWF project to advance sustainable growth of small-scale fisheries to improve of food security and local livelihoods in coastal Kenya and across East Africa.
Ecofish is also part of an IGAD project that support sustainable utilization, development, and management of fisheries on two transboundary basins of the Baro-Akobo-Sobat River – between Ethiopia and South Sudan and Lake Turkana – that is shared between Ethiopia and Kenya.
UN deputy chief calls for action to deliver sustainable development in Africa (UN News)
In welcoming the UN deputy chief, President Saied spoke of the new era in the world, citing the COVID-19 pandemic and the war in Ukraine, but also in Tunisia, which has a new Constitution that he said will establish greater accountability for all. The President said TICAD has already brought important results for Africa, and there will be much to do to implement agreements reached during this latest edition of the conference.
Ms. Mohammed recalled that the SDGs remain a very relevant framework in this new era, and TICAD has served as an important reminder.
In her remarks, the Deputy Secretary-General called for action to confront what she described as “the cascading impacts of multiple crises” facing the world today. She said recovery from the COVID-19 pandemic, the effects of the war in Ukraine, the climate emergency and the financial crisis, are placing already vulnerable populations under severe stress. “This ‘perfect storm’ is, in turn, creating a fertile breeding ground exacerbating existing and future conflict and unrest, thus compromising our collective efforts to achieve the SDGs and save lives and livelihoods,” she added.
Ms. Mohammed said countries have an unprecedented opportunity to overcome these challenges and address security and sustainable development in Africa. She underlined the need to accelerate action across three main areas to benefit African economies and achieve the SDGs.
Africa received its highest proportion of private sector investment in infrastructure in 2020, sending an important signal to governments and investors. African Development Bank Vice President for the Private Sector, Infrastructure and Industrialization, Solomon Quaynor, underlined this point during a webinar organized by the African Development Bank and the Japan International Cooperation Agency (JICA) on 24 August.
Quaynor said the greater private sector investment came as most African governments contended with the Covid-19 pandemic, limited fiscal space and high debt-to-GDP ratios. “Private sector investment into Africa’s infrastructure rose to $19 billion in 2020, representing 23%, the highest since 2016. This counter-cyclical role played by the private sector shows the importance of its growing role in infrastructure financing in Africa,” he said in remarks at the close of the webinar, themed Private Sector Infrastructure Development Opportunities in Africa.
TICAD 8: UNDP-Africa-Japan Impact Report | United Nations Development Programme (UNDP)
Global economy
Pamela Coke-Hamilton | Four ways to transform Africa-Caribbean trade (Jamaica Gleaner)
on the eve of this historic meeting, Africa-Caribbean trade remains well below its potential. In 2020, not even 0.1 per cent of African exports were destined for Caribbean markets while Africa bought less than one per cent of Caribbean exports. Trade is heavily concentrated in a small handful of products and countries on both sides. In fact, trade between Africa and the Caribbean is less diversified than their exports to any other region of the world.
But with the right opportunities, analysis, and support, this situation can change. Analysis by my staff at the International Trade Centre (ITC) estimates that there is US $1 billion of export potential between the two regions, across goods and services. The figures are startling. In goods trade alone, we found that Africa could boost its exports to the Caribbean by more than 50 per cent in less than five years, potentially exporting $325 million every year. The Caribbean, in turn, could increase its annual goods exports to Africa by almost one-third to reach $264 million. The new market opportunities are spread across several countries and products.
This potential cannot be unlocked without a serious, targeted push on both sides of the Atlantic. Let me suggest four actions that governments and companies on both sides of the Atlantic can take right now.
Communications and Informatics Minister Invites Delegates to Prepare a Ministerial Declaration for Global Digital Future (G20 Presidency of Indonesia)
The Digital Economy Working Group (DEWG) meeting of Indonesia’s G20 Presidency seeks to develop a global digital transformation agenda. Minister of Communications and Informatics Johnny G. Plate identified the alarming reality of digital divide, lack of digital literacy and digital skills, and increasing data leakage. Therefore, he invited all delegates to formulate a declaration to address the challenges of a digital future.
According to Johnny, the economic value of digitalization and the alignment of data flows across national borders to generate new ideas and innovations are fundamental issues. He also hoped that the discussions of this issue will continue in the next presidency.
As the first DEWG forum after the elevation of the Digital Economy Task Force, the Minister of Communications and Informatics stated that there are many opportunities in the digital sector that can be of common concern. “At the same time, we see and identify the opportunities that lie ahead, the economic value of digitization, the alignment of data flows in generating new ideas, and technological innovation. The fact is that DEWG is the first group after the elevation of status from digital economy task force,” he explained.
UNGA77: 5 key things to know about the upcoming General Assembly session (UN News)
With just a few weeks to go until the opening of the 77th session of the UN General Assembly, the UN diplomatic community, as well as residents of New York City, are bracing for the annual arrival of Heads of State and Government from around the world, after two years of disruption wrought by COVID-19. Many details are still to be confirmed, but here are five things to look out for between 12 and 27 September.
Related News
tralac Daily News
Local news
S. Africa: Anti-dumping duties suspended for some countries (Poultry World)
This, says the minister, is in light of the rapid rise in food prices and the impact that the imposition of the anti-dumping duties may have on the price of chicken. According to the USDA, although the Commission investigating dumping found that poultry originating in these countries was dumped into the Southern African Customs Union market and recommended the application of anti-dumping duties, the Minister determined that “the imposition of these duties would have a negative impact on the poor”.
The current anti-dumping duties imposed against US bone-in chicken meat exports to South Africa outside of the Tariff Rate Quota expire on 23 November this year. The commission will consider information submitted by local industry to determine whether there is sufficient evidence to justify the initiation of a further review, or if the duties should expire as scheduled.
“The local poultry industry is sensitive to the plight of cash-strapped consumers and understands that food price inflation can negatively impact South Africa’s population. However, poultry producers also feel that the minister’s announcement flies against the spirit of the Poultry Sector Masterplan, which specifically listed tariff measures as an important pillar to put a stop to dumping,” said Izaak Breitenbach, GM of the South African Poultry Association Broiler Organisation, adding that the latest decision seems to demonstrate that dumping is “okay”.
SA’s farmers will be pushed to plant less because of Botswana, Namibia vegetable import bans (Business Insider South Africa)
South Africa is not likely to face a vegetable glut because of Botswana’s and Namibia’s import bans, as farmers in the country will be forced to plant fewer vegetables, a move that will hurt export revenue and lead to job losses in the sector. “South Africa is not likely to face a problem with oversupply as farmers are alive to the threat this poses to their revenue. What is more likely is that farmers may decrease the hectarage planted,” Christo van der Rheede, Agri SA’s executive director, told Business Insider SA, speaking about the impact of the long-term bans. Van der Rheede said South Africa can only absorb produce meant for Botswana and Namibia to a limited extent.
“In theory there are markets for South African products outside of [the] Southern African Customs Union (SACU, both on the continent and beyond. What remains to be seen is whether this can be arranged timeously, and whether it would be economically viable to do so,” said Van der Rheede. He said factors such as the condition of roads, rail, and ports must also be considered when factoring in whether other markets can viably absorb this season’s produce.
“It is disappointing that intra-regional restrictions have put South African farmers in this precarious position when the purpose of SACU is to foster open trade within the union,” he said.
Boost for Beitbridge border efficiencies, revenue flows (Bulawayo24 News)
INFRASTRUCTURE developments taking place on the road network and at the Beitbridge Border Post will enable more traffic to pass through the country and increase revenue inflows. Shipping and Forwarding Agents Association of Zimbabwe (SFAAZ) board chairman Godfrey Muswere said the ongoing refurbishment of the road network and the Beitbridge Border post would increase efficiency and boost revenue generation.
“Beitbridge is the biggest border post going to the North, and with the new roads that are being built, we will certainly get more traffic passing through the country, which is revenue for Zimbabwe,” he said. “When we have better infrastructure that means more efficiency for our operations.”
Exports on course to reach year-end target (Sunday Mail)
According to the Zimbabwe National Statistics Agency (ZimStat), exports grew 31 percent during the first half of the year compared to the same period last year. In the period, export revenue stood at US$3,3 billion compared to US$2,5 billion over the same period in 2021. Reserve Bank of Zimbabwe (RBZ) figures also show that trade volumes are growing. In the January-June period, service exports rose to US$176 million from US$103 million a year earlier. Imports increased by 18 percent to US$4,1 billion from US$3,4 billion in 2021. Although some might view growth in imports as unfavourable, it is encouraging to note that the bulk of imports have been machinery and equipment, as well as raw materials.
Government driven business reforms to spur development (Kenya News Agency)
The government has launched extensive business reforms across the country in an exercise aimed at creating a conducive investment environment for local and foreign investors in counties as a way of promoting industrial growth and manufacturing amongst the devolved units. Through the Ministry of East African Community and Regional Development (MEAC), the government has identified ten counties for piloting the reforms spearheaded by Directorate of Business Reforms and Transformation (BRT) with an aim of bolstering Kenya’s competitiveness as a choice destination for investors.
UK protests proposed Kenya ban on second-hand imports of buses, trucks (The East African)
fearing the embargo will cut the flow of used commercial vehicles from the European country. Betty Maina, the Industrialisation and Trade Cabinet secretary, says authorities in the UK are uncomfortable with the sanction on used vehicles, which was set to take effect from July 1 before it was frozen in court. An escalation of the differences between Kenya and Britain could affect the flow of goods between the two nations. Kenya and Britain inked a fresh trade deal in December 2020 allowing duty-free access of Kenyan goods to the UK market and to avoid a post-Brexit disruption. The protest will be handled by the Kenya-United Kingdom Economic Partnership Agreement (EPA) Council, Ms Maina said.
How Russia-Ukraine war hurts Kenya tea exports (Business Daily)
At the beginning of the year, it cost a tea exporter about Sh357,000 ($3,000) to ship a 40-foot container to Russia, Kenya’s fifth biggest market for the beverage. Today, it is about Sh952,000 to the nation and other neighbouring regions around the Black Sea. Europe may be miles away from Kenya, but the impact of the ongoing Russia-Ukraine war is being felt by the local tea farmers. The sharp rise in cost has been occasioned by the longer distance that the ships have to navigate to reach their final destination following the closure of the Black Sea route.
“If there is a sector that has been hit the hardest, it is tea. We have never witnessed such a huge jump in shipping cost in my history of exporting the beverage,” said Rodgers Lai, a Mombasa-based tea buyer. Mr Lai said high shipping costs have made Kenyan tea expensive in the world market, hence cannot sell competitively globally as enormous shipping costs have made the country’s tea more expensive.
Tanzania firms get nod to import raw material for wire products tax free (The East African)
Tanzanian companies have been granted exemption on imported products that attract 35 percent duty, barely a month after the EAC Common External Tariff came into force. In a legal notice signed by the EAC Council of Ministers chair Betty Maina, the companies can now import, at zero percent for a year, raw materials and inputs for the manufacture of wire products. The decision follows an application by Afriweld Industries, Tanuk Africa Ltd, MM Integrated Steel Mills and other firms for duty exemption. This came just as the region started to implement the four-band Common External Tariff (CET) structure that came into force on July 1.The structure has rates of zero, 10, 25 and 35 percent for all products imported into the EAC.
“A remission of import duty is approved for Tanzania for 12 months to apply a duty rate of zero percent for the specified manufacturers on raw materials and inputs for the manufacturers of wire products,” said Ms Maina, Kenya’s Cabinet Secretary for Trade and EAC.
Customs agents blame CBN forex ban list for decline in cargo volumes in Nigerian ports (Nairametrics)
The Association of Nigerian Licensed Customs Agents (ANLCA), has stated that the Central Bank of Nigeria’s forex prohibition list and the crashing of the Naira is responsible for the declines in cargo volumes at Nigerian ports. The submission by the agents was conveyed by Dr Kayode Farinto, Acting President, Association of Nigerian Licensed Customs Agents (ANLCA) in a television programme monitored by the News Agency of Nigeria on Thursday in Lagos. He stated that the apex bank was encroaching on fiscal policy, a purvey of government, which led to the decline in the importation of cargo to Nigeria.
“Before now, Nigeria had lost 45% of its cargo to Lome, because, they have a deep seaport. But with the coming of the Lekki Deep Seaport, we will witness berthing of large vessels in Nigeria,” he said. He advised the government to establish a ministry to monitor the African Continental Free Trade Agreement (AfCFTA) in order to prevent Nigeria from turning into a garbage dump.
ICT, trade as major drivers, oil shrank: Takeaways from Nigeria’s GDP Q2 report (TheCable)
Expansion in the non-oil sector pushed Nigeria’s gross domestic product (GDP) to 3.54 percent year-on-year in real terms in the second quarter of 2022. According to data released by the National Bureau of Statistics (NBS), the development is an improvement from 3.11 percent growth recorded in the first quarter. On a year-on-year basis, NBS said the second quarter of 2022 growth rate decreased 1.47 percent points from 5.01 percent growth rate recorded in the corresponding quarter in 2021. The International Monetary Fund (IMF), in its World Economic Outlook (WEO) for July 2022, retained a projected economic growth of 3.4 percent for Nigeria in 2022. But what sectors are behind the uptick in the nation’s GDP?
Diversification as necessary policy option for de-risking Nigeria’s economy (The Guardian Nigeria)
Amid the backdrop of rising uncertainty around the globe, Nigeria managed to pick up a 3.54 per cent growth in the second quarter (Q2) of the year. The Q2 performance is 43 basis points (bps) ahead of the previous quarterly data and a slight top-up of the 3.4 per cent yearly growth projected by the International Monetary Fund (IMF). The outlooks of several regional economies are blunted by rising uncertainty, spiraling prices and geopolitical tensions. These are already pulling growth figures towards the negative territory. For instance, the world’s largest economy contracted by 0.6 per cent in Q2, coming after a steep 1.6 per cent slump in Q1. In the same period, China’s growth waned to 0.4 per cent from 4.8 per cent in the previous quarter, forcing its central bank into monetary easing.
speaking at the 33rd Seminar for finance correspondents and business editors held concurrently in Abuja and Lagos at the weekend, economists said deliberate efforts must be made to address these imbalances such that both sectors can contribute equally to FX earnings and public revenue. The experts picked RT200 FX Programme and other development roles of the Central Bank as a pointer to likely policy the government could explore to consistently improve the contribution of non-oil to FX earnings.
At the seminar tagged, Policy Option for Economic Diversification: Thinking Outside the Crude-Oil Box’, a leading economist, Dr. Biodun Adedipe, said the current structure is hostile to inclusive growth, adding that “a cocktail of policy options” must be adopted to break the jinx to position the economy for sustainable growth.
Declaring the seminar open, the Governor of the Bank, Godwin Emefiele, said the quest for building a more sophisticated economy anchored on agriculture, micro, small and medium enterprises (MSMEs), industrial and manufacturing exploits have become the major components of the bank’s price stability policy thrusts.
He said that Nigeria has largely depended on the oil sector for revenue generation over the past four decades and that the sustained decline in production has continued to undermine the performance of the economy. This, he said, necessitated the drive to diversify to other non-oil sectors.
Brazil, Nigeria Trade Relations Recorded $281bn Export Earnings in 2021, Says Ambassador (This Day)
The Brazil and Nigeria trade relations recorded $280.81 billion in export earnings in 2021.However, Nigeria’s export earnings to Brazil was $47.2 billion in the year under review. In the area of imports in 2021, Brazil was higher with import earnings of $219.41billion, while Nigeria recorded earnings of $52.1 billion. The Brazilian Ambassador to Nigeria, Francisco Soares Luz, disclosed this yesterday, at a media briefing in Lagos, to announce the forthcoming Brazil-Nigeria business forum 2022. The forum is to take place in Lagos at Eko Hotel and Suites, as part of activities marking the Brazil’s Bi-centennial anniversary.
He said Brazil remains committed to strengthening trade relationship with Nigeria, stating that in 2021 some of the import commodities were iron ore, soybeans, crude petroleum, sugar, and beef, while the export commodities were refined petroleum, chemicals, crude oil, vaccines, fertilizers.
African trade and integration
WCO highlights the role of Customs in the implementation of the AfCFTA at TICAD 8 side event (WCO)
On 22 August, the Secretary General of the World Customs Organization (WCO), Dr. Kunio Mikuriya, participated as a panelist in an online side event titled “Deepening Regional Economic Integration, AfCFTA (African Continental Free Trade Area) and Trade Facilitation in the Post COVID era”, co-organized by the World Bank Group (WBG) and Japan International Cooperation Agency (JICA), in the context of the 8th Tokyo International Conference on African Development (TICAD).
The side-event saw the participation of high-level representatives from the International Organization for Migration (IOM), JICA, the AfCFTA Secretariat, as well as the private sector. The speakers discussed the successful realization of the AfCFTA in the post-COVID era, as well as challenges, examples of efforts, potential solutions, and future directions for trade facilitation and border control in support of the AfCFTA. They also discussed on strategies to find a common understanding and foster momentum for deepening regional integration.
Secretary General Mikuriya explained the current situation surrounding Customs administrations around the world, such as supply chain disruption caused by the COVID-19 pandemic. He expanded on the sharp rise of the number of the E-commerce packages, and emphasized the importance of an efficient trade management, supply chain resilience for the potential emergency in the future and Customs role, including the following aspects: digitalization of border procedures towards paperless trade and contactless clearance to keep supply chain open; Customs role in risk management at borders for public health and security; coordination among border agencies and cooperation between Customs and business; regional integration through application of tariff reduction based on the rules of origin to identify the eligibility of preferential tariff; capacity building for Customs administrations, in cooperation with the EU, JICA and other donors; Trade facilitation measures, including OSBP with standardized operations; and the interoperability of Customs IT systems for effective sharing information of data.
The government of Japan and the African Development Bank have announced a $5 billion financial cooperation under the fifth phase of the Enhanced Private Sector Assistance for Africa initiative (EPSA) from 2023 to 2025. Given the importance of food security, Japan and the African Development Bank will add agriculture and nutrition as a priority area under EPSA 5.
A Japanese economic zone in SCZone can be gateway for Japan exports to Africa: Madbouly tells PM Kishida (Ahram Online)
New trade agreements to unlock African markets and new tariff for East Africa (Hortgro)
South African deciduous fruit may have access to new markets in the coming years, thanks to two new trade agreements. In the meantime, however, a new tariff for fruit has been introduced in East Africa. Trade with other African countries has historically been difficult due to logistics, governance, and complex border control requirements. However, these countries hold significant potential for South African exporters. If the two massive African trade agreements currently nearing completion can address challenges and barriers to trade, South African companies could benefit from a larger playing field. These trade agreements are the African Continental Free Trade Agreement (AfCFTA) and the Tripartite Free Trade Agreement (TFTA). Though in their final stages, neither of these agreements are functional yet. It is expected that duty-free trade will only begin in 2023 or early 2024.
In 2020, 23% of South Africa’s world exports were to the rest of Africa, but of that, only 3% of South Africa’s world exports were to African countries that are not members of SADC. Imports from Africa to South Africa predominantly consist of crude petroleum oil, accounting for 37% of South Africa’s overall African imports. This illustrates that the SADC trade agreement has facilitated trade, and the trade balance has been in SA’s favour.
AfCFTA Gets Togo’s Backing In Shipping Promotion (The Tide)
The Secretary General, Maritime Organisation of West and Central Africa (MOWCA), Dr. Paul Adalikwu, has received support from the government of Togo to promote shipping as a core element for the success of African Continental Free Trade Area (AfCFTA).
Adalikwu, who was in Lome at the instance of the Togolese Minister of Maritime Economy, Fisheries and Coastal Protection, Mr Edem Kokou Tengue, also received reassurance on the West African country’s commitment to actualise the transformation of MOWCA to African Maritime Organisation (AMO).
According to a statement,Tengue also expressed his country’s readiness to contribute to the timely take off of the Regional Maritime Development Bank, whose charter they had assented to, with a promise to diligently consider the appointment of Togo’s representative of the bank’s Board of Directors and pay up his country’s arrears of contribution to MOWCA.
SADC PPDF approves US$20.2 million for preparation of 12 regional projects (SADC)
The Southern African Development Community Project Preparation Development Facility (SADC PPDF) has approved a total of US$20.2 million for the preparation of 12 regional projects covering energy, transport and water sectors, and these are expected to generate at least US$3 billion in infrastructure investment. The projects have a huge potential of unlocking business opportunities across the infrastructure value chain, not just in advisory services, but also financing, construction, equipment supply, technology and skills as well as operations and maintenance.
Among the projects approved by the PPDF and funded by the European Union (EU) and KfW Bank of Germany are the Second Alaska-Sherwood powerline in Zimbabwe; the Angola-Namibia transmission interconnector; Kasemeno-Mwenda toll road and Luapula hydro power development both between DRC and Zambia, Mulembo Leyla Hydro in Zambia; the North South Rail Corridor involving Botswana, DRC, South Africa, Zambia and Zimbabwe. The projects also include Mauritius Wastewater Pumping Station and Wastewater Treatment Plant; MOZISA power interconnector project between Mozambique, South Africa and Zimbabwe; Africa Green Co projects (all SADC Member States); Kazungula Water Supply and Sanitation Project (Zambia); Lomahasha Namaacha Cross (Eswatini and Mozambique); and Development of Guidelines and Standards for Renewable Energy Projects including a funding and Incentive strategy in Mauritius.
The PPDF aims to assist SADC to address the implementation of the SADC Regional Infrastructure Development Master Plan (RIDMP), which will promote and contribute to enhancing regional economic integration in the Region.
Good internet will increase Africa’s competitiveness, innovation – expert (The New Times)
For Africa to improve its competitiveness and innovation on the global arena, it needs a good and affordable internet. For that to happen, Africa needs to rely on local internet rather than international links.
Senior Director of Internet Technology and Development at Internet Security, Michuki Mwangi outlined how accessible and affordable internet end user experience increases adoption and dependability. “Data shows that we still have more than 40 per cent of the population in Africa still not connected and there’s work to be done in that space.
“There are different business models that can actually be sustained in those areas because the areas that are yet to be connected are those in rural parts that are harder to reach; the traditional business cases don’t apply and so we need to look at different business cases and also technologies that can actually allow to connect those people because they’re in harder area to reach.”
The ‘Big Four’ are leading Africa’s start-up scene—Nigeria, Egypt, South Africa and Kenya (ThePrint)
Funding secured by Nigeria, Egypt, South Africa and Kenya has continually increased over the years: from a 79.4% share in 2018, to 87.5% in 2019 and then 89.2% in 2020. These figures stand in sharp contrast to the cash raised by countries like Ethiopia, the Democratic Republic of Congo and Tanzania, all of which still record a low level of start-up investment activity. While capital funding is undoubtedly on the rise in Africa, it is becoming more concentrated in the big-four countries. According to the 2021 Disrupt Funding report, non-big-four African countries raised $170,607,500. That is just 7.9% of the continent’s total.
The report also indicates that more than 40% of that funding was secured by start-ups from Ghana, Morocco and Tunisia. According to one report, Algeria raised $30 million in start-up funding; Morocco raised $29 million and Tunisia raised $23 million in venture funding in 2021. These investments are relatively minor compared to the funding raised by the big-four countries in Africa year after year.
Invest in agriculture statistics – AfDB implores Africa (Farmers Review Africa)
AFRICA should invest in quantity, quality and heightened dissemination of agricultural rural information for sustained food security and endeavour to insulate the continent from among other headwinds, food versus. Bio-fuels, global warming, environment, gender, and food security, COVID 19, the African Development Bank says. Despite the continent’s potential to remain sustainable and food secure and further improve the rural economy, the lack of reliable data and capacity to disseminate to various end-users has dwarfed the continent’s growth despite the various available initiatives AfDB and other players have initiated over the years. The emerging of new data requirements to inform policy on the emerging development has worsened the situation.
Calling for just, well-financed climate action in Africa (Africa Renewal)
Climate change is an increasing threat to Africa, and your appointment comes at a time when Africa will be hosting the global climate talks (COP27) in November? Ms. Kenewendo: Given that Africa has contributed little to global emissions so far, but it is already being disproportionately affected by the impacts of climate change, mine is to push for African countries and non-State actors to be active leaders in driving and leading action towards a managed, just and financed transition. A climate action-oriented path offers Africa the opportunity to avoid the mistakes of a totally high carbon industrialization and seize the opportunity to leapfrog into a new economy and a better form of growth that can deliver on both its development and climate goals. We are focused on highlighting opportunities that exist in this space; new industries, jobs and development.
Tanzania, Kenya to miss out on China debt relief plan (The East African)
Tanzania could join Kenya on a list of countries that will be left out of the Chinese debt relief deal at the end of this year by virtue of their lower-middle-income status even as the East African nations grapple with a growing debt burden. Chinese Foreign minister Wang Yi has announced that the world’s second-largest economy would forgive 23 matured interest-free loans for 17 undisclosed African nations that are classified as least developed countries (LDC).Last week Chinese authorities in Nairobi said Kenya, which is struggling with a debt of over Ksh8.6 trillion ($72.26 billion), was left out of the deal as it is classified as lower-middle-income. Tanzania also transitioned from low-income to lower-middle-income status in July 2020 after experiencing over 20 years of sustained economic growth.
Beijing made the announcement of the new debt relief plan on August 18 during the Forum on China-Africa Cooperation as it seeks to boost ties with its African allies.
Global economy
What would BRICS expansion mean for emerging markets? (The Borneo Post)
As emerging markets recover from the Covid-19 pandemic and face financial headwinds due to interest rate hikes in the US, the BRICS group – Brazil, Russia, India, China and South Africa – is looking to expand its membership to tackle shared challenges. At the 14th BRICS Summit held in July, China, Russia and India discussed the potential entry of Egypt, Saudi Arabia and Turkey, which are reportedly preparing applications. This announcement came after the disclosure in June that Iran and Argentina had already applied with support from China. In addition, international media has reported that Algeria, Bangladesh, Indonesia, Mexico, Nigeria, Sudan, Syria, Pakistan and Venezuela have expressed interest in joining the organisation.
An online meeting hosted by China in May of potential BRICS+ applicants included the foreign ministers of Argentina, Egypt, Indonesia, Kazakhstan, Nigeria, the UAE, Saudi Arabia, Senegal and Thailand. It is unclear who will join and when, as there is no formal process for welcoming new members, and any expansion would likely take place in piecemeal fashion. However, BRICS expansion could offer emerging markets the opportunity to build new economic synergies.
Major economies sharply increased support for the production and consumption of coal, oil and natural gas, with many countries struggling to balance longstanding pledges to phase out inefficient fossil fuel subsidies with efforts to protect households from surging energy prices, according to analysis released today by the Organisation for Economic Co-operation and Development and the International Energy Agency.
New OECD and IEA data show that overall government support for fossil fuels in 51 countries worldwide almost doubled to 697.2 USD billion in 2021, from 362.4 USD billion in 2020, as energy prices rose with the rebound of the global economy. In addition, consumption subsidies are anticipated to rise even further in 2022 due to higher fuel prices and energy use.