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BREAKING: Nigeria Begins Trading On AfCFTA, Eyes $50bn AfCFTA Benefits, Promises Unwavering Support for Businesses (Shipping Position Daily)
The Federal Government has reaffirmed its dedication to ensuring that Nigerian businesses, both small and large, will benefit from the $50 billion African Continental Free Trade Area (AfCFTA).President Bola Tinubu made this announcement on Tuesday during the launch of the Guided Trade Initiative under AfCFTA.
Represented by the Secretary to the Government of the Federation, Sen George Akume, Tinubu highlighted AfCFTA’s potential to revolutionize the continent’s economic landscape. AfCFTA, according to Tinubu, is more than just a trade agreement; it represents a bold vision for Africa’s industrialization, equitable growth, and prosperity. “It requires us to embrace challenges ahead with enthusiasm and readiness to tackle them headlong in the interest of our stakeholders and collective survival,” he stated.
To ensure the successful implementation of AfCFTA, Tinubu outlined a strategy focused on creating an enabling environment that supports businesses, fosters innovation, and enhances competitiveness. Collaboration with continental partners will be crucial to ensure that the benefits of AfCFTA are equitably distributed and inclusive. Tinubu praised the pioneering companies involved in the initiative, noting their belief in the potential of made-in-Nigeria products and the vast opportunities presented by AfCFTA.
“These trailblazing businesses have made history by taking this bold step, and they set a precedent for others to follow. Their success is our success, and their journey is our journey,” he said, highlighting the importance of continuous innovation and efficiency in maintaining Nigeria’s competitive edge.
With the launch of the Guided Trade Initiative, Tinubu declared a significant leap forward, envisioning it as a catalyst for intra-African trade, economic diversification, and sustainable development. “With the launch of the Guided Trade Initiative, a significant forward leap has taken place. This initiative would catalyze intra-African trade, economic diversification, and sustainable development,” he said. Tinubu added that the platform would open new markets for Nigerian products, enhance competitiveness, and create jobs.
Nigeria’s participation in the Guided Trade Initiative: an economic assessment (ODI)
The African Continental Free Trade Area’s Guided Trade Initiative (GTI) was launched on 7 October 2022 to test and accelerate the implementation of the provisions of the AfCFTA. Eight countries – Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia – were selected to participate in the first phase of the Initiative, trading a limited set of goods. South Africa joined in January 2024.
With the second phase of the GTI underway, Nigeria is strategically positioned to join, opening new avenues for trade growth. This move is particularly significant as Nigerian exporters, spurred by domestic economic challenges, look to the GTI as a gateway to wider African markets.
This report assesses the economic implications of Nigeria’s participation in the GTI, analysing its current trade patterns, potential gains from tariff reductions, and strategies to maximise the benefits.
Implementing the AfCFTA Digital Trade Protocol in Nigeria: three crucial considerations (ODI)
In the heart of Africa, a digital revolution is gaining momentum. Nigeria, a key player in the continent’s economy, is poised to become a digital powerhouse under the African Continental Free Trade Area (AfCFTA) and its forthcoming Digital Trade Protocol (DTP).
With the AfCFTA DTP now adopted by state parties of the AfCFTA, its implementation in Nigeria, alongside the country’s own digital economy strategy, is gaining traction. In our research, we have examined how Nigeria can best implement and make use of the AfCFTA protocol. We found three crucial considerations for the country to consider as it navigates this exciting landscape:
Nigeria’s Oil Production Rises 16.7m Barrels in H1 Amid Demand for Additional Output (This Day Live)
Nigeria’s crude oil production increased by 16.7 million barrels in the first six months of 2024, compared to the same period last year, a THISDAY analysis of data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has shown. Although still significantly lower than the expected production during the period, this was a 7.3 per cent growth in crude oil production put side by side the output for 2023. However, the computation of the data from the industry regulator excluded blended and unblended condensate, which are outside the calculation of the Organisation of Petroleum Exporting Countries (OPEC).
TVs, soaps among goods Kenya set to increase taxes from Tanzania (Bizna Kenya)
The East African Community announced new rates of duty for manufacturing and industrial inputs imported by Tanzanian firms and industries on Tuesday, July 16. The EAC has noted in a Gazette notice that despite the EAC common tariff, some of the final products from the inputs shall attract duties, levies, and other charges provided in the EAC Common External Tariffs if sold in Kenya. These products include soaps, tea packaging materials, food and beverage flavours and compounds, automotive, and non-automotive strengthened glass, electrical cables and wire products as well as televisions.
pdf EAC Gazette No. 20 of 16th July 2024 (Regarding Customs management) (1.10 MB)
Mozambique: $650M in foreign direct investment in three months (Club of Mozambique)
Mozambique secured 650.5 million dollars in Foreign Direct Investment (FDI) in the first quarter, above the 2023 record, according to central bank data compiled by Lusa on Tuesday. According to the most recent statistical report from the Bank of Mozambique, this volume of FDI invested in the country resulted from shares and participations worth $51.5 million (€47.2 million) and capital in supplies and commercial credits worth $599 million (€549 million). Compared to the previous year, FDI in Mozambique had already grown by 2% in 2023 to just over $2.50 billion (€2.3 billion).
EAC companies buck trend with mega Kenya deals (Business Daily)
East African Community (EAC) businesses are increasingly expanding into Kenya’s key sectors, including service, manufacturing, agriculture, and oil and gas, bucking a trend where Kenyan firms have long dominated forays into the region’s markets. Deep-pocketed investors in firms from EAC countries like Uganda, Tanzania, Rwanda and Somalia have been expanding their footprints into the country, threatening the dominance that has for long been almost exclusively enjoyed by locals and businesses beyond the region.
East Africa’s great trade war (The Independent Uganda)
Kenya has four big exports to Uganda; palm oil (11.8%) of exports, cement 10.1%, coated flat-rolled iron 8.94%, and refined petroleum 6.27%. Together, these comprise about 40% of Kenya’s total exports to Uganda as of December 2022, according to data from the Observatory of Economic Complexity (OEC); the world’s leading data visualisation tool for international trade data. Those are the latest official figures. Total value of Kenya exports to Uganda was US$677 million.
The African Development Bank has successfully concluded a two-day preparatory workshop on implementing the African Ports Connectivity Portal Project (APC-PP) to improve data collection and connectivity among the continent’s ports. Held in Abidjan, Cote d’Ivoire, from 8-9 July 2024, the workshop rallied together key stakeholders and experts from various organizations, including port management and maritime associations, the African Union Commission, regional economic communities, and port authorities from ten African countries.
The African Ports Connectivity Portal Project is supported by a $2 million grant from the Beijing-based Multilateral Co-operation Center for Development Finance (MCDF). This grant will facilitate the creation of a comprehensive port data book, offering performance data for Africa’s ports and maritime transport sector, along with practical information on the continent’s leading ports. Additionally, the project will develop a secure, web-based tool for collecting, storing, and retrieving port data across the continent.
2024 Africa Sustainable Development Report (UNDP)
The 2024 Africa Sustainable Development Report (ASDR) reviews the status of the implementation of the two Agendas in Africa and offers policy recommendations to facilitate their attainment. As in previous years, the 2024 report aligns with the theme and corresponding Sustainable Development Goals (SDGs) of the high-level political forum on sustainable development (HLPF) selected for any particular year. In this context, the SDGs under review by the 2024 HLPF focus on ending poverty (Goal 1); eliminating hunger (Goal 2); combating climate change (Goal 13); promoting peaceful societies (Goal 16) and strengthening global partnerships (Goal 17). Each SDG is analysed in relation to the corresponding goal of the African Union Agenda 2063.
The findings of the report highlight the need for Africa to accelerate progress on SDGs 1, 2 and 17, reverse the negative trend on climate action (Goal 13) and strengthen statistical systems to track performance particularly on good governance (SDG 16), where data limitations abound and inhibit performance tracking. For Africa, less than 6 percent of the 32 measurable SDG targets are on track to be achieved by 2030. Of the remaining measurable targets, 21 need achieving in the region and the negative trends for 8 need to be reversed. Overall, data gaps prevent a full picture of the continent’s performance.
The annual Country Policy and Institutional Assessment (CPIA) for Africa confirms that countries in Sub-Saharan Africa (SSA) weathered 2023 relatively well thanks to credible economic and social policy reforms. In particular, governments and central banks have started to shift attention from weathering global shocks to building credibility, capacity, and transparency.
One reflection of this is the region’s strong performance across multiple measures of Central Bank independence – an institutional provision that improves countries’ ability to reduce inflation and can improve investors’ perception of risks. However, countries were held back by low transparency and inadequate judicial oversight. Moreover, the improvements are not universal, as governments facing budget constraints linked to high debt service costs will need to work harder to attract private sector investments to stimulate economic growth.
The average overall CPIA scores in SSA remained stable at 3.1 – the same aggregate score as the two previous years. A more detailed look at country assessments reveals that SSA has caught up with the average overall score for IDA countries in the rest of the world thanks to social policy reform, and credible fiscal policy improvement, and institutional provisions to promote economic stability.
South Africa tells UK carbon border tax will deepen inequality (Engineering News)
South Africa has told the UK that its plans to impose a carbon tax on imported goods will deepen global inequality and hamper Africa’s ability to adapt to climate change. The criticism of the measure, which the UK plans to introduce by 2027, comes as developing economies such as South Africa accuse industrialized nations of shifting the obligation to combat global warming to poorer countries. The European Union began levying its own so-called Carbon Border Adjustment Mechanism (CBAM) last year.
The tax, which penalises imports based on the amount of climate-warming carbon generated in their production, may also breach World Trade Organization (WTO) rules, South Africa said in a submission sent to the UK Treasury last month. South Africa’s reliance on coal to generate most of its electricity from coal renders it particularly vulnerable to the measure.
Global Growth Steady Amid Slowing Disinflation and Rising Policy Uncertainty (IMF)
Our global growth projections are unchanged at 3.2 percent this year and slightly higher at 3.3 percent for next year, but there have been notable developments beneath the surface since the April World Economic Outlook.
Asia’s emerging market economies remain the main engine for the global economy. Growth in India and China is revised upwards and accounts for almost half of global growth. Yet prospects for the next five years remain weak, largely because of waning momentum in emerging Asia. By 2029, growth in China is projected to moderate to 3.3 percent, well below its current pace.
In the latest IMF WEO update, we find that risks remain broadly balanced, but two downside near-term risks have become more prominent.
The triple planetary crisis: Global Foresight Report reveals global shifts (UN)
Eight critical global shifts are accelerating a triple planetary crisis of climate change, nature loss, pollution and waste, according to the new Global Foresight Report produced by the UN Environment Programme (UNEP) and the International Science Council (ISC) released on Monday.
“The rapid rate of change, uncertainty and technological developments we’re seeing, against a backdrop of geopolitical turbulence, means any country can be thrown off course more easily and more often,” said UNEP Executive Director Inger Andersen.
The shifts include humanity’s degradation of the natural world, the rapid development of technologies such as AI, competition for natural resources, widening inequalities and declining trust in institutions. Together, they are creating a so-called polycrisis in which global crises are amplifying and synchronizing – with huge implications for human and planetary wellbeing.
Getting back on track to meet the first Sustainable Development Goal (World Bank Blog)
In 2022, 3.6 billion people, nearly half the global population, were living on less than $6.85 per day, the poverty line for upper-middle-income countries. Countries must expand opportunities for people living in poverty to earn higher incomes and contribute more proactively to the economy and lift the constraints poor households face in accumulating natural, financial, and other assets.
Members discuss TRIPS review, pandemic preparedness and impact of new WIPO Treaty (WTO)
At a meeting of the Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS) on 10 July, WTO members discussed arrangements for reviewing implementation of the TRIPS Agreement, mandated to take place every two years. They also advanced work on pandemic preparedness, as requested by the Abu Dhabi Ministerial Declaration, and considered the implications of the newly concluded WIPO Treaty on Intellectual Property, Genetic Resources and Associated Traditional Knowledge, examining how it affects the TRIPS Council’s work in this area.
DG Okonjo-Iweala calls on members to “walk the talk” and engage in genuine negotiation (WTO)
Reporting in her capacity as Chair of the Trade Negotiations Committee (TNC) on 15 July, Director-General Ngozi Okonjo-Iweala urged WTO members to adopt a spirit of compromise and engage in genuine negotiation in order to overcome differences and reach agreements on several key issues at a General Council meeting scheduled for 22-23 July.
The Director-General told members at the TNC meeting that while members were “a bit stuck” in many of these key issues, she was glad to hear an acknowledgment from a heads of delegation retreat on 8 July on the need to truly restart negotiating at the WTO. Ambassador Einar Gunnarsson noted that on 10 July he circulated a revised draft of the Additional Provisions on Fisheries Subsidies, which would enhance the disciplines of the Agreement on Fisheries Subsidies concluded at the 12th Ministerial Conference (MC12), in order to capture progress made to date and to preserve the opportunity to put it forward to the 22-23 July General Council meeting for decision.
Quick links
African trade agreement: mitigating challenges for Southern African agribusiness as new markets open (Engineering News)
The digital bridge for Africa’s growing trade finance gap (Business Daily)
Transforming the cold chain one byte at a time (UNCTAD)
Report: AI’s Rapid Growth Threatens Energy Industry, Climate Stability (This Day Live)
