News
tralac Daily News
The Minister of Trade, Industry and Competition, Mr Ebrahim Patel, has released the dtic’s Industrial Policy and Strategy Review in an event which took place yesterday at a manufacturing facility at the Tshwane Automotive Special Economic Zone (TASEZ) in Gauteng.
The pdf Industrial Policy and Strategy Review (8.94 MB) maps the measures and action of the South African government over the past five years under the Reimagined Industrial Strategy laid out by President Ramaphosa; reflecting further on the evolution of policy actions during democratic period from 1994.
“We chose to launch our policy and strategy review here at the Tshwane Automotive Special Economic Zone as an embodiment of the new approach to industrial policy and SEZ implementation adopted by Government as part of the Reimagined Industrial Strategy. Industrial policy during this period has been characterised by increased collaboration and partnership with social partners.
Green energy presenting South Africa with massive reindustrialisation chance (Engineering News)
Green electrons and green molecules are presenting South Africa with a massive opportunity to reindustrialise, Nedbank CIB head of infrastructure, energy and telecommunications Mike Peo told the Green Hydrogen Roundtable on Monday.
“We have an opportunity for South Africa to completely reindustrialise, to start building up our industrial base that we have lost over the last ten to 15 years,” was Peo’s inviting message at the event addressed by the Chemical Industries Education & Training Authority (CHIETA) CEO Yershen Pillay, as well as by Higher Education and Training Department deputy director-general Zukile Mvalo. (Also watch attached Creamer Media video.)
The outlook comes against the far-reaching current generation of renewable solar and wind energy and the big volumes of renewable-energy generation planned, which provides scope for the generation of green molecules in addition to green electrons. On the widespread opportunity presented by the generation of green molecules, Peo drew attention to what he described as “a massive misunderstanding of what green hydrogen represents”. “Huge numbers of people think that green hydrogen is one particular thing. The view held by many is that green hydrogen is going to be manufactured and used as a fuel source. We’ll convert electrons into molecules and do something with those molecules. “But the reality is that there’s an incredible ecosystem that exists around green hydrogen. There are maybe 30 to 40 very specific types of opportunity that can arise as a consequence of building green hydrogen and green ammonia production plants and having molecules that can be utilised.
Zimbabwe Hypes New Gold-Backed Currency in Search for Investment (BNN)
Zimbabwe is making a fresh push to lure foreign capital and is using its new gold-backed currency to persuade investors it won’t repeat mistakes that led to hyperinflation and economic woes in the past. The southern African nation, whose serial currency crises have made it a watchword for policy malpractice, kicked off an international road show that took it to Johannesburg last week with upcoming visits planned for London and Dubai.
Still, skeptics doubt the ZiG, short for Zimbabwe Gold, will avoid the same fate of its predecessors, which were all rendered worthless by the government’s habit of printing money to finance spending.
Unveiled on April 5, the ZiG is Zimbabwe’s sixth attempt at a stable local currency in 15 years. It replaces the Zimbabwean dollar, whose value had plummeted 80% against the greenback since the start of the year, and is backed by 2.5 tons of gold and $100 million in foreign exchange reserves held at the central bank.
Analysts are reserving judgment.
Government launches digital cross border permits and COMESA licenses (The Herald)
Government has launched digital cross border permits and the Common Market for Eastern and Southern Africa (COMESA) carrier licenses for passenger and transport operators to facilitate the smooth and unimpeded flow of cross-border traffic between countries. The new ICT system for processing these permits and licenses is fully integrated with the Central Vehicle Registry to validate vehicle licensing and registration details.
In a statement yesterday, Transport and Infrastructural Development Minister Felix Mhona confirmed the development. “Pursuant to the objectives of National Development Strategy 1 and the utility of digitalization as an enabler of economic development across the broad spectrum of growth factors, including in transportation, the Ministry of Transport and Infrastructural Development wishes to advise the public of the launch of the digital Cross Border Permits and COMESA Carrier Licenses for passenger and freight transport operators with effect from Thursday 9 May, 2024.
He said the digital Cross Border Permits and COMESA Carrier Licenses have enhanced security features. “Consequently, as a counterfeit deterrence measure, these permits and licenses have a digitally signed barcode which is readable by any mobile device. It is now easier for both local and regional traffic law enforcement agents to verify and validate their authenticity.
FG Committed To Digital Transformation Of Nigeria’s Economy (TVC News)
The administration of President Bola Tinubu is steadfast in its commitment to restructuring Nigeria’s communications and digital economy. This was highlighted at a leadership retreat organized for Galaxy Backbone Company staff in Abuja, where the Minister of Communications, Innovation, and Digital Economy also gave expressed his support for new ideas to grow the sector.
Digital transformation has become a crucial part of any modern organization’s success as it can be used to enhance customer experience, and develop new services and products, and create better strategies for growth. Nigeria cannot be left out in this move for complete digital transformation which is why Galaxy Backbone a Digital Infrastructure and Services Company of the federal government has organised this two day leadership retreat Arriving from various parts of the country, regional heads from the company are eager to share ideas and deliberate.
Nigeria, China Customs Sign Agreement On Trade Facilitation (Leadership News)
The Nigeria Customs Service (NCS) has signed a Memorandum of Understanding (MoU) with the General Administration of Customs of the People’s Republic of China (GACC), to foster bilateral relationship for the enhancement of economic growth between both countries. The Comptroller-General of Customs (CGC), Adewale Adeniyi, led some of his management team in Shenzhen on Wednesday, where he highlighted the significance of knotting bilateral affiliation with China, which, according to him, will boost the two countries’ import-export operations and favour the businesses of MSMEs in Nigeria.
He also applauded the recent exponential rise in the development of e-commerce, adding, “We know a lot of Nigerian companies and SMEs take advantage of the opportunities aided through e-commerce.” CGC Adeniyi expressed optimism that the NCS-GACC Memorandum of Understanding will serve as a critical component of cooperative security and trade relationship between the two nation’s Customs agencies.
IFC and Egypt announce $100m financing deal, $50m earmarked for women-owned businesses (Trade Finance Global)
Today, the International Finance Corporation (IFC) and Egypt announced a $100 million financing deal at the “IFC Day in Egypt”. Rania Al-Mashat, Egypt’s Minister of International Cooperation and the country’s representative at the World Bank, presided over the signing of the financing deal between the IFC and Banque du Caire. This event also included the ratification of a consultancy contract with the General Authority for Comprehensive Health Insurance.
Minister Al-Mashat witnessed the agreement between Banque du Caire and the IFC, earmarking $100 million to enhance the growth of small, medium, and micro-enterprises within the private sector. This deal includes a $50 million allocation to support women-led entrepreneurial ventures, alongside another $50 million dedicated to facilitating trade through the IFC’s Global Trade Finance Program (GTFP). The Minister highlighted the importance of today’s agreement, noting it builds upon previous collaborations, such as the IFC’s $100 million investment in Egypt’s inaugural green bonds for the private sector, a step towards sustainable development and emission reduction.
Libya: Staff Concluding Statement of the 2024 Article IV Mission (IMF)
Several shocks have hit Libya, but their impact on GDP growth has been muted. Tropical storm Daniel struck Eastern Libya in September 2023, leading to devastating floods, catastrophic damage, and a tragic loss of life. The disaster, however, had only a small impact on economic growth, since Libya’s GDP is mainly based on energy exports. Similarly, the economy remained shielded from the impact of the conflict in Gaza and the Red Sea shipping disruptions. In 2023, real GDP is estimated to have expanded by 10 percent, largely owing to a rebound from the oil production stoppages of 2022.
The year 2023 saw a fiscal expansion. Owing to a fall in hydrocarbon prices, government revenues declined, despite the concurrent boost to oil production. Fiscal expenditures nevertheless surged, driven by an increase in the wage bill and higher-than-expected energy subsidies (the latter despite the lower oil prices). Reflecting this expansion, money supply has grown at its fastest pace since the fall of the Ghaddafi regime.
Benin: Climate Adaptation Efforts Necessary for Sustainable and Resilient Growth (World Bank)
According to the second edition of the Benin Economic Update Report, achieving sustainable and resilient economic growth in the coming decades will depend on efforts to adapt and finance climate investments.
Titled Adapting to Climate Change for Sustainable, Resilient Economic Growth, the first part of the report analyzes recent economic developments and presents the country’s medium-term outlook. It projects that annual growth will stabilize at an average of 6.2% between 2024 and 2026 (3.5% on average per capita), driven by investment and the expansion of the Glo-Djigbe industrial zone (GDIZ).
The end of the gasoline subsidy in Nigeria in May 2023, supply chain bottlenecks following the closure of the border with Niger, and growing demand pressures have led to an increase in inflation to 2.8% in 2023, below the regional average of 3.7% in 2023.
Cameroon’s Trade with Africa Remains Marginal Despite AfCFTA Implementation (Business in Cameroon)
In 2023, only 12.7% of Cameroon’s export earnings (CFA2,988.6 billion) came from African trading partners. According to figures released by the National Stats Agency (INS), this share of export earnings is equivalent to what Cameroon captured solely from its exports to France, its second-largest customer in 2023, behind the Netherlands.
As far as imports are concerned, trade between Cameroon and African countries presents an even bleaker picture. “Imports from African countries (in 2023) fell by 2.2 percentage points on the previous year, representing 9.5% of total import expenditure (CFA4,993 billion). Within this sub-group, Côte d’Ivoire leads with a share of 1.5%, followed by Morocco and South Africa. This low proportion of trade between African countries highlights the opportunity offered by the African Continental Free Trade Area (AfCFTA) to strengthen and promote intra-African economic ties”, said the INS. However, INS data revealed a lack of adoption by many African states of this preferential trade regime, which came into force on January 1, 2021, opening the doors to a vast market of around 1.3 billion consumers on the continent.
Stakeholders Mobilise Youths To Take Advantage Of AfCFTA (Leadership News)
As Africa moves towards becoming a single market, Aloinett Advisors in collaboration with the Abuja Global Shapers have launched a campaign to empower and educate young Nigerians about the opportunities presented by the African Continental Free Trade Area (AfCFTA).
At an Open Mic Night hosted by the Abuja Literary Society, Friday tagged: “AfCFTA Dey Call, Answer with Action!,” the organiser said the aim is to engage young Nigerians through a series of informative and interactive activities.
Executive Director, Aloinett Advisors, Teniola Tayo, commenting on the campaign, said the AfCFTA is one of the most important projects in African development at the moment, and Nigeria’s effective participation can help with some of the big issues such as job creation and economic growth. “Our youth are incredibly vibrant and entrepreneurial. This campaign is a call to action to young people to take charge and take advantage of the AfCFTA. Think Africa, trade with Africa,” she added.
PAPSS Hosts its Inaugural Bank CEO Consultative Forum (Afreximbank)
Promoters of the Pan-African Payment & Settlement System (PAPSS), namely African Export-Import Bank (Afreximbank), African Union Commission (AUC) and African Continental Free Trade Area (AfCFTA) Secretariat, successfully organized the first Consultative Forum of CEOs of African Banks bringing together executives of African commercial banks, bankers’ associations, payment switches, the association of African stock exchanges and other financial service providers.
Participants reaffirmed their strong support to the decisions of the Assembly of the African Union Heads of States and Governments of 2019 and 2020. The 2019 decision adopted PAPSS as the African Financial Market Infrastructure for cross-border payments and settlements while the 2020 decision mandated Afreximbank, AUC and AfCFTA Secretariat to urgently introduce and scale up the implementation of PAPSS.
Following productive discussions, participants at the Forum agreed to take collective ownership of the success and the future of PAPSS given its significant and hugely positive impact on the facilitation of cross-border payments and the development of intra-African trade.
Mr. Mike Ogbalu III, Chief Executive Officer of PAPSS, stated: “PAPSS is fully operational and making rapid progress. We have signed on thirteen African Central Banks, and connected over 115 commercial banks, and ten payment switches across Africa. Another 115 commercial banks are in the pipeline for connection. Our foundation is solid, and the time has come for action and acceleration. It is time to use the system to drive trade in Africa, for Africans, by Africans. We urge all banks to join us in our collective effort to promote intra-African trade and development through PAPSS.”
Finance Minister highlights three key strategies to propel Africa’s economic prosperity (GhanaWeb)
Finance Minister Dr. Amin Adam has outlined a number of key strategies that deeply align with Ghana’s vision for a more interconnected and prosperous Africa and the AU agenda 2063. Speaking at the launch of the Africa Prosperity Dialogue 2025 in Accra on May 13, the finance minister said that Africa must recognize that the continent cannot achieve sustainable prosperity in isolation and therefore requires constant effort and collaboration.
“Africa’s infrastructure deficit impedes economic growth and development. Inadequate networks of road, rail, air, and waterways make transport costs in Africa among the highest in the world,” he stressed. The minister continued, “We must redouble our efforts to invest in critical infrastructure projects, including transportation, energy, and digital connectivity, to unlock Africa’s full potential for trade and investment.”
For his second point, Dr. Amin Adam urged for continued efforts for Stronger Regional Integration, which he says is a key feature of Africa’s trade. He stressed that a lack of regional integration has had some adverse implications on economic growth and development, as well as high external orientation and a relatively low level of intra-regional trade
Dr. Amin Adam concluded that measures must be taken towards Strategic and Innovative Financing, which he explains that traditional financing mechanisms may no longer suffice in meeting the growing demands of rapidly expanding economies.
AfCFTA mission can’t be achieved without digital inclusion - AfCFTA Secretary General (MyJoyOnline)
The Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene has emphasised the critical role of digital inclusion in achieving the mission of the organisation. According to him, digital inclusion is crucial for leveraging the vast market potential represented by Africa’s 1.4 billion population, projected to become one of the world’s largest economies by 2050. He said this at the 3i Africa Summit held at the Accra International Conference Centre on May 13.
However, he was concerned that without the deployment of digital technologies, this objective may not be realised. “But if we don’t deploy these digital technologies that all of us are going to be discussing today and tomorrow, I don’t [think] that we will reach that objective.
Acknowledging the pivotal role of digital trade, Mr Mene highlighted the mandate given by the heads of state to implement protocols on digital trade. He emphasised the importance of creating opportunities for millions of young Africans, placing small and medium-scale enterprises at the forefront of Africa’s economy.
COMESA region is moving closer to a harmonized energy regulatory regime (COMESA)
Energy experts are meeting in Cairo for a two-day consultative workshop on regional harmonization of regulatory frameworks and tools for improved electricity regulation in the COMESA region. The meeting is reviewing a study report of the energy market, institutional structure, and tariff frameworks in 13 regional states, focusing on their current and future energy mix, technical and operational performance along with the tariff determination mechanisms.
Twelve COMESA Member States are covered in the study including Burundi, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Rwanda, Somalia, Sudan, Tunisia, and Uganda and additionally, South Sudan. This activity is part of ongoing project funded by the African Development Bank to ultimately, enhance the sustainability of the electricity sector of the region through effective, uniform, transparent and enforceable regulatory frameworks that set out clear principles, rules, processes, and standards for the COMESA region.
East African countries hit by major internet outage (The East African)
Internet connectivity was disrupted in and around several East African nations on Sunday, the internet observatory Netblocks said, adding that the incident was linked to failures affecting the SEACOM and EASSy subsea cable systems.
Internet firm Cloudflare said on one of its X accounts that monitors trends that internet disruptions were ongoing in Tanzania, Malawi, Mozambique and Madagascar as a result of faults reported on the East African Submarine Cable System (EASSy) and SEACOM cables.
Nape Nnauye, Tanzania’s minister of information, communication and information technology said in a statement on Sunday the government had been informed by EASSy and SEACOM of disruption to the internet caused by a fault on the cables between Mozambique and South Africa. “There are ongoing efforts to solve the problem,” he said. “As they continue to solve the problem, we will have very low access to internet and international voice calls.”
East Africa trades more with its African peers than with EU, Asia (The East African)
East African Community (EAC) member states are increasingly trading with one another and with other African countries, while reduce their trade with Europe, Asia, and other parts of the world, shaping the intra-Africa trade dream projected to boost commerce and livelihoods on the continent.
The seven countries in the region (as of last year) increased their trade with the rest of Africa by $584.6 million to $4.3 billion in the fourth quarter of 2023, a 14 percent rise compared with a similar period in 2022, latest data by the EAC Secretariat shows. Cross-border trade within the region also recorded a 12 percent rise, from the previous year’s $2.6 billion to $2.9 billion in last year’s Quarter 4, an indication of rising trade within the region over the year.
But the region’s trade with the European Union (EU) countries, which traditionally account for about 10 percent of EAC’s total trade, recorded a drop of 14 percent, from $2.04 billion in the three months to December 2022, to $1.7 billion in the last quarter of 2023. This is a signal of improving trade integration on the continent, coming at a time when governments are pushing for increased implementation of the African Continental Free Trade Area, which is projected to lift about 65 million Africans from extreme poverty.
The Southern African Development Community (SADC) Heads of Immigration, Labour Commissioners and Statistics held a meeting on reporting on indicators of the SADC Regional Migration Policy Framework and Action Plan as well as the Global Compact on Migration (GCM) Reporting Matrix, in Livingstone, Zambia from 06-10 May 2024.
The Director of the Organ on Politics, Defence and Security Affairs at the SADC Secretariat, Professor Kula I. Theletsane highlighted the importance of Migration statistics in regional integration and development. He buttressed that the availability of comprehensive, disaggregated data allows for sound, evidence-based policies that ensure that no migrant is left behind, especially the most vulnerable ones; supports Governments and communities to harness the economic potential of migration as migration data allows for highlighting migrants’ contribution through the transfer of remittances and knowledge, trade and foreign direct investment and allow monitoring of progress made towards achieving global commitments such as the Sustainable Development Goals and those contained in the Global Compact for Safe, Orderly and Regular Migration.
Official Launch of the 1st West African Festival of Arts and Culture (ECOFEST 2024) in Abidjan (ECOWAS)
The official launching ceremony of ECOFEST 2024 was held on Saturday 11 May 2024 at the Palais de la Culture in Abidjan in the Republic of Côte d’Ivoire. Organised by the Commissions of the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU), in partnership with the Republic of Côte d’Ivoire, the first edition of ECOFEST will be held from 21 to 28 September 2024 in Abidjan, under the theme: “Culture, a catalyst for peace, diversity and economic and social integration in West Africa”.
The aim of this high-level cultural event is to promote the values and cultural identities of the peoples of the Community with a view to strengthening regional integration through the blending of the region’s populations. The festival also aims to usher in a new era in the celebration of West African cultural diversity and to reaffirm the role of culture as a driving force for integration, social cohesion and the socio-economic and cultural development of West Africa.
Validation Workshop of the ECREEE Gender Mainstreaming Strategy and Action Plan 2023-2027 (ECOWAS)
The ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) held a validation workshop for the ECREEE 2023-2027 Gender Mainstreaming Strategy and Action Plan Report the 9 May 2024 in Praia.
At the opening ceremony, the executive director of ECREEE, Mr. Francis Sempore, emphasized the importance of mainstreaming gender considerations into energy policies and projects, underscoring that gender equality is not just a matter of social justice; it is also critical for achieving sustainable development and maximizing the impact of renewable energy and energy efficiency initiatives.
The workshop served as a platform for stakeholders to provide valuable insights, feedback, and recommendations to enhance the effectiveness and relevance of the Gender Mainstreaming Strategy. Participants engaged in lively discussions, sharing best practices, success stories, and innovative approaches to advancing gender equality within the renewable energy sector.
A report was pre-approved by the National Gender-Energy Focal Points of the Ministries of Energy of ECOWAS Member States during an online workshop on 8 May 2024.
Driving sustainable investment in West Africa’s mining industry (GhanaWeb)
West Africa boasts extensive reserves of gold, iron ore, diamonds, and other critical minerals, positioning it as a pivotal player in the global mining sector. The mining industry is a cornerstone of many West African economies, contributing substantially to GDP and continuously drawing exploration and investment due to its role in economic development. Nations such as Ghana, Burkina Faso, Mali, and Ivory Coast have seen heightened activities, especially mining gold, bauxite, and iron ore.
Despite its significance, the mining industry in West Africa encounters a mix of trends and challenges that influence investment opportunities. The abundance of mineral resources in the region draws considerable regional and global investor interest.
Yet, challenges such as volatile commodity prices, influenced by global market dynamics, regulatory uncertainties, and political instability deter investment. Other factors such as geopolitical issues, including conflicts and civil unrest cause concerns over investment security which further compound the risks to mining operations. Community engagement and environmental considerations are becoming increasingly pivotal in the mining sector. Local communities demand more involvement in decision-making processes and expect mining companies to minimize environmental impacts and contribute positively to regional development.
“We are willing to open discussions on areas for cooperation with ECA. Agriculture is the solid foundation of any country’s modernization, stability and prosperity. China attaches great importance to agriculture and the related value chains” said His Excellency Wang Yingwu, Ambassador of the People’s Republic of China to Cameroon.
During the discussion He had with Jean Luc Mastaki, ECA Director for Central Africa, the Head of the Chinese Diplomatic Mission outlined the central place occupied by the agricultural development the in cooperation with Cameroon: “Food products are strategic commodities. All developed countries attach great importance to agricultural value chains and support this sector”. The current state of the world economy and recent international crises comfort the diplomat’s views on the central place of the sector in the structural transformation process, given the food security concerns which have risen in Cameroon and the sub-region since the outbreak of COVID19.
Kenya’s President William Ruto has intensified his campaign for a substantial replenishment of the African Development Fund, underscoring the transformative impact of the Fund-backed projects in the country. The Fund is the concessional window of the African Development Bank Group.
President Ruto reaffirmed his advocacy during a high-level meeting with Dr Akinwumi Adesina, President of the African Development Bank Group, at State House, Nairobi on Thursday. Adesina was visiting Kenya to assess preparations for the Bank Group’s 59th Annual Meetings scheduled for the 27th to 31st of May. He also engaged with media leaders at the AllAfrica Media Leaders’ summit held in the city.
In his address at the World Bank’s International Development Association (IDA) meeting in Nairobi last month, President Ruto called for a substantial $25-billion 17th replenishment of the African Development Fund which supports 37 low-income countries across the continent. The ongoing 16th replenishment—which raised a historic $8.9 billion in December 2022—is set to conclude next year.
Africa now emits as much carbon as it stores: landmark new study (The Conversation)
A landmark new study has found that, in the last decade, the African continent has started emitting more carbon than it stores. When the total amount of carbon that is sequestered by natural ecosystems (such as the soil and plants in grasslands, savannas and forests) exceeds the amount of total carbon emissions within a system, it’s referred to as a net sink of carbon. But, the study found, as natural ecosystems are converted for agricultural purposes, the carbon storage capacity is decreasing – while the rate of emissions is increasing.
Finding ways for Africa to develop in a way that is carbon neutral is a big challenge. Investment in carbon-neutral energy sources and reducing reliance on fossil fuels would be a start. But this has never been done – all developed countries have grown their economies on the back of massive fossil fuel use. If African countries are to become carbon-neutral and also grow their economies, global support and funding will be required
However, fossil fuels are only part of the problem in Africa as less than half the continent’s greenhouse gases currently come from fossil fuels; land use change and agricultural expansion are the leading cause of its emissions. There are many innovative approaches to producing food in ways that emit fewer greenhouse gases – again, the challenge is to find ways to roll these out at scale.
Climate change: alarming Africa-wide report predicts 30% drop in crop revenue, 50 million without water (The Conversation)
If climate change continues on its current trend, crop production in Africa will decline by 2.9% in 2030 and by 18% by 2050. About 200 million people risk suffering from extreme hunger by 2050. The crop revenue loss of approximately 30% will cause a rise in poverty of between 20% and 30% compared to a no-climate-change scenario. How this will happen is that climate change will drive agricultural production down, so crop sales will suffer although scarcity will raise prices.
In Africa, 42.5% of the working class is employed in the agricultural sector. The incomes of those, mostly rural, workers will decline. Already, a higher share of people living in rural areas are poor and most impoverished people in Africa are concentrated in the rural areas. The decline of the agricultural sector is likely to push more people into severe poverty.
African countries will suffer significant economic loss after 2050 if global warming is not limited to below 2°C, a new study by the Center for Global Development has found.
Quick links
China and Africa tied together by roots of agriculture (China Daily)
AI becomes latest frontier in China-US race for Africa (Voice of America)
Green Growth Summit to drive sustainable transition in Egypt, MENA (Ahram)
More Diversified Trade Can Make Middle East and Central Asia More Resilient (IMF)
