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Media Statement: Trade, Industry and Competition Committee Adopts Budget Vote Report (Parliament of the Republic of South Africa)
The Department of Trade, Industry and Competition (DTIC), led by Minister Parks Tau and Deputy Ministers Zuko Godlimpi and Andrew Whitfield appeared before the Portfolio Committee in Parliament recently to present the department’s annual performance (APP) and budget for the 2024/25 financial year, in line with the 2019 – 2024 Medium-Term Strategic Framework (MTSF). However, the APP will be refined once the government of national unity adopts its new policy priorities for the seventh administration.
The Chairperson of the committee, Mr Mzwandile Masina, led the robust and fruitful discussions with the DTIC regarding its mandate and plans for the financial year. He clearly stated that “it cannot be business as usual if we want to grow the economy”.
In its report, the committee noted that the DTIC should evaluate the strategic needs of its entities, their performance and resource allocation to ensure that they are fit for purpose, and to rationalise resources and structures to enhance their efficiency and effectiveness. Mr Masina said the committee noted the cuts made by National Treasury to the department’s budget due to fiscal constraints.
Addressing the multiple constraints to the economy – such as low business confidence, port and rail infrastructure challenges, insecure energy and water supply, and high administered prices and port tariffs skewed in favour of the export of raw materials rather than value-added goods – will be critical in stimulating the economy and achieving sustained economic growth.
Industrial Policy Will be in the Centre of Economic Development Strategy – Minister Tau (the dtic)
The Minister of Trade, Industry and Competition, Mr Parks Tau says industrial policy will be in the centre of South Africa’s economic development strategy, which will be characterised by a social compact that include government, civil society, labour and business. Minister Tau was speaking during the tabling of the department’s Budget Vote in Parliament on Tuesday afternoon.
“Our industrial policy will be the anchor around which this administration will align and deploy trade instruments, incentives, tools and regulation in areas such as new energy vehicles, green industrialisation, and high-value service sectors such as Global Business Services. The industrial policy will be the centre piece of our economic development strategy, mobilising an all of government and all of society approach,” said Minister Tau.
“As you would appreciate, in the short-term, the domestic market is too small and growing too slowly to sustain manufacturing-led growth. In order to reduce our dependence on our small domestic market, the dtic will implement new export measures, coupled with expanding the current measures and improving their effectiveness. In partnership with government, business, labour and civil society, we will work together to expand our export footprint,” he noted.
Budget Vote Speech by the dtic Minister, Hon. Parks Tau
South Africa Can Become an Export-Oriented Economy – Deputy Minister Whitfield (the dtic)
The Deputy Minister of Trade, Industry and Competition, Mr Andrew Whitfield says South Africa can become an export-oriented economy. This he said can be achieved through the department’s dedicated focus on implementing measures to strengthen local industries, enhance South Africa’s competitiveness in global markets, streamline export processes, lower trade barriers, provide financial and technical assistance to exporters, and cultivate beneficial trade alliances with other nations.
“It is essential that South Africa’s economic growth is grounded in manufacturing-led growth as outlined by Minister Parks Tau. We will support local industries by using evidence to build a supportive and competitive ecosystem to drive manufacturing growth. Key to this will be identifying intermediate goods that could make our manufacturers more competitive, as well as identifying the products we produce competitively and the markets that consume those products in large or growing volumes,” said Deputy Minister Whitfield.
Budget Vote Speech by the dtic Deputy Minister Andrew Whitfield
Unpacking South Africa’s trade priorities under GNU (CNBC Africa)
South Africa’s Ministry of Trade, Industry and Competition will now shared between the ruling African National Congress and the Democratic Alliance, the country’s second largest party in the new government of national unity. To discuss what the country’s trade priorities should be, following the departure of the previous Minister Ebrahim Patel, who governed the portfolio for more than a decade, CNBC Africa is joined by Trudi Hartzenberg, Executive Director, Trade Law Centre.
Kenya’s trade surplus with Africa hits Sh42 billion (Business Daily)
Kenya’s earnings from goods exported to African countries outpaced expenditure on imports by more than Sh40 billion in the first quarter of the year, largely lifted by increased demand for tea and re-exports of jet fuel. Official data shows traders sold merchandise worth an estimated Sh113.94 billion to markets on the continent while buying goods valued at Sh71.93 billion. This resulted in a trade surplus of Sh42.01 billion from Sh37.33 billion a year earlier. This came despite the value of exports growing at a slower rate of 13.95 percent from Sh99.99 billion a year ago when it had climbed 12.70 percent, according to data collated by the Kenya National Bureau of Statistics (KNBS).
“Notably, there were increased domestic exports of tea to Egypt; wheat flour to the Democratic Republic of Congo; carboys, bottles, flasks, and similar articles to Uganda; household or laundry-type washing machines to South Sudan; and re-exports of kerosene-type jet fuel to Tanzania,” KNBS said in a trade report for the quarter ended March.
The import bill arising from goods trade between Kenya and the rest of Africa in the review period recovered to grow 14.79 percent to Sh71.93 billion after contracting 6.85 percent to Sh62.66 billion a year ago. The rebound in spend on imports helped slow growth in Kenya’s merchandise trade surplus to 12.56 percent in the review quarter from a jump of 150.7 percent previously.
FG launches first AfCFTA shipment to 5 African countries (Vanguard)
Five years after the inauguration of the Nigeria AfCFTA Coordination Office, President Bola Ahmed Tinubu yesterday launched the first shipment of Nigeria’s export to five African countries under the Guided Trade Initiative, GTI. The President who was represented by the Secretary to the Federal Government, Senator George Akume, said: “Today, we embark on a journey that would ignite the flame of opportunity, foster economic ties and pave the way for progress and shared prosperity for our great nation, in the entire African continent. We gather here in Lagos, seeking that this being at the forefront of Africa’s economic and trade acceleration, is a testament to Nigeria’s enduring leadership in regional and continental integration.
Similarly, National Coordinator, Nigeria’s AfCFTA Office, Mr. Olusegun Awolowo said that trade was the only and most sustainable path to prosperity. According to Awolowo, the first set of exports from Nigeria have been consigned to Cameroon, Kenya, Algeria, Uganda and Egypt with exports like bags, ceramics textiles, cables, smart cards, Clinkers Black soap, Native starch and Shea butter.
Awolowo also said Nigeria has fully fulfilled all the requirements for accession to the Guided Trade Initiative, GTI, adding that the stakeholders stand as witnesses to the official flag-off of trade under the preferential trading arrangement with this symbolic shipment of some containers from Apapa ports.
Shettima Declares Workshop On AfCFTA Digital Trade Protocol Open Friday (New Telegraph)
Vice President Kashim Shettima will spearhead a stakeholder workshop aimed at bolstering Nigeria’s position within the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol. The workshop organised by the Office of the Vice President is scheduled to commence hold at the Banquet Hall of the Presidential Villa, Abuja. According to a release by his spokesman, Stanley Nkwocha, stakeholders expected at the event include government agencies and private sector representatives, who are expected to contribute to the formulation of comprehensive strategies for the initiative.
The initiative aligns with the federal government’s ambition to leverage digital trade for economic growth and regional integration. Shedding light on the event, Special Assistant to the President on ICT Policy, Dr. Salihu Dasuki, said, “The workshop signifies a shared commitment to advancing Nigeria’s trade landscape through the power of digital technology and regional integration under the AfCFTA. “We aim to identify key opportunities for enhancing Nigeria’s digital trade within the AfCFTA framework. We will discuss effective strategies for leveraging digital technologies to drive economic growth and support livelihoods”.
Trade Policy Review: Mozambique (WTO)
Mozambique, a least developed country (LDC) with a growing population, has significant potential for steady economic expansion, underpinned by its good transport links to international markets and its vast and diverse natural resources. However, Mozambique is both highly exposed and vulnerable to weather-related hazards that tend to cause significant economic damage. Mozambique’s competitiveness is also undermined by infrastructure bottlenecks, a sizeable informal sector, and an underdeveloped financial system, despite the recent steps taken to address these constraints.
During 2017-23, Mozambique continued to depend heavily on imported food, agricultural inputs, and refined petroleum products, whereas its export basket was dominated by coal, aluminium, and natural gas. Mozambique remained a net importer of services throughout that period. Aggregate two-way trade flows ranged between 92.8% and 137.7% of GDP, partly on account of Mozambique’s position as a regional gateway to international markets. Mozambique also continued to attract significant foreign direct investment (FDI) inflows, which were mostly driven by large extractive industry projects (natural gas, coal, and minerals).
President Mbumba to assume Chairmanship of SACU (Informanté)
The Republic of Namibia will assume the Chairmanship of the SACU Summit, Council of Ministers, and Commission, effective from 15 July 2024 to 14 July 2025. Namibia takes over from the Kingdom of Lesotho, which held the SACU Chair from 15 July 2023 to 14 July 2024. The SACU Chairmanship rotates among the Member States for a period of twelve (12) months, in alphabetical order. H.E. Dr. Nangolo Mbumba, the President of the Republic of Namibia, will assume the role of Chairperson of the SACU Summit, taking over from the Right Honourable Mr. Samuel Ntsokoane Matekane, Prime Minister of the Kingdom of Lesotho.
Regional integration: Guinea Bissau hails Morocco’s key role (APAnews)
On the sidelines of the 3rd meeting of the Morocco-Guinea-Bissau Joint Commission, held this Tuesday in Laâyoune, in the southern provinces of Morocco, the Guinea-Bissau Minister of Foreign Affairs, International Cooperation and Communities, Carlos Pinto Pereira, expressed his full support for the kingdom of Morocco’s ambitious efforts to promote integration and regional development on the African continent.
During the meeting, which was co-chaired by the Moroccan Minister of Foreign Affairs, African Cooperation and Expatriate Moroccans, Nasser Bourita, discussions focused on a number of strategic issues, first and foremost King Mohammed VI’s initiative to transform the African Atlantic space into an optimal geostrategic framework for pragmatic cooperation and consultation. This initiative, known as the Atlantic Sahel Initiative, aims to strengthen ties between the countries of the region and promote multi-sectoral integration.
Ambassador Katherine Tai to Host the African Growth and Opportunity Act (AGOA) Annual Forum in Washington, D.C. (United States Trade Representative)
United States Trade Representative Katherine Tai has announced that she will host the 21st U.S.–sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum) in Washington, D.C., from July 24 to 26, 2024. “AGOA has been the cornerstone of our economic partnership with sub-Saharan Africa for over twenty years,” said Ambassador Tai. “This Forum is an opportunity to discuss how we can make the program more effective, to address today’s challenges and deliver real benefits to more people across the continent. I look forward to welcoming my fellow ministers and guests to Washington.”
The theme for this year’s AGOA Forum is “Beyond 2025: Reimagining AGOA for an Inclusive, Sustainable and Prosperous Tomorrow.” Over the course of the event, participants will engage in discussions on how the United States and sub-Saharan African partners can work together to make AGOA more transformative and ensure that the program can be an effective tool to drive inclusive, sustainable economic growth for more people and advance regional integration efforts.
The AGOA Forum will bring together the governments of the United States and AGOA-eligible countries, as well as representatives from key regional economic organizations, civil society, labor, and the private sector. The July 25 to 26 Ministerial program will feature plenary sessions on the present and future of AGOA and U.S.–Africa trade and investment cooperation, as well as breakout sessions on various topics. It will be preceded on July 24 by a Civil Society and Organized Labor Forum and a Private Sector Forum.
CPIA 2024: Top Highlights in 5 Charts (World Bank)
Robust reforms and improvements in technical capacity are reflected in changes in the 2024 CPIA for Africa. Multiple measures of central bank independence have increased, and fiscal deficits are decreasing as governments are prioritizing economic stability and credibility. The region has advanced in creating an inclusive marketplace with a strong social foundation, as climate change has mobilized governments to develop national adaptation plans and quickly put into place policies aimed at attracting investments in green growth.
Regional trends around digitization and integration provide reasons for optimism. The African Continental Free Trade Area (AfCFTA) should start to see some demonstrable results in 2024, with the potential for fundamental change in trade and the financial sector, leading to an increase in private investment. Moreover, trade integration through one-stop border crossings has grown considerably, taking advantage of digital technologies for rapid processing and coordination of trade administration. Digital transformation also has the potential to unlock capital for the private sector through digital financial services, while electronic platforms for business registration and tax payment facilitate formal sector growth and corruption prevention.
Nevertheless, deep structural challenges remain in many places. The success of AfCFTA will rest on political support. Monopolies and captured markets continue to undermine the potential for new business growth. Digital technology has the potential to strengthen public sector performance and increase the accountability of the executive in ways that fosters the private sector, but political capture remains a concern.
Africa offers a wealth of opportunities for investors and enterprises for positive climate action (UNDP)
The United Nations Development Programme (UNDP) today launched the UNDP Africa Investment Insights Report, Third Edition – Climate Opportunities at the Africa Impact Summit 2024 in Nairobi, Kenya. The UNDP Africa Investment Insights Report provides an overview of private sector opportunities with economic, social and environmental potential for sustainable development progress across Africa. The report offers SDGs investment data and trends across the continent, and describes financing opportunities, making the case for public support for impactful investments. It is published by the UNDP Africa Sustainable Finance Hub (ASFH) and is based on data from the SDGs Investor Maps, UNDP’s market intelligence tool on investments for the Sustainable Development Goals (SDGs).
This third edition of the Report emphasizes climate-related investment opportunities utilizing market intelligence from 16 African SDGs Investor Maps. The report shows that climate action is a critical opportunity for the private sector: more than half of the SDGs investment opportunities identified in the African SDGs Investor Maps contribute to climate action and support NDCs. Most climate opportunities for the private sector are adaptation interventions, followed by mitigation and dual benefits.
The United Nations Development Programme (UNDP), the United Nations Economic Commission for Africa (ECA), and the African Development Bank (AfDB), presented today the 2024 Africa Sustainable Development Report (ASDR), at an event held on the margins of the UN High-Level Political Forum for Sustainable Development in New York.
Scaled-up access to concessionary development financing, strengthened climate information and early warning systems, and economic reforms are amongst the key recommendations raised in the new ASDR, titled “Reinforcing the 2030 Agenda and Agenda 2063 and Eradicating Poverty in Times of Multiple Crises: The Effective Delivery of Sustainable, Resilient and Innovative Solutions.” The research shows that Africa is on track to reach only less than three of the 32 targets assessed in this report (ASDR-2024) and that setbacks have been recorded for 8 of them, with slow progress or status quo registered for the remaining targets.
“Advanced economies have rebounded from COVID-19, but many countries in Africa struggle with high debt, double-digit inflation, and limited access to crucial development and climate funding. Disparities in the Human Development Index are widening between top-ranking nations and those at the bottom, highlighting significant challenges across Africa despite some progress in recent decades,” said Claver Gatete, ECA Executive Secretary.
“African countries have made some significant progress in important areas, but we are running out of time,” stressed Matthias Naab, UNDP Africa Deputy Regional Director a.i. “It is imperative we reinforce partnerships and look at innovative solutions to stop the current deceleration – and even reversal in some areas – and work more closely with African countries and people to get back on track towards our Global Goals and the Africa We Want. And this report is key, as it provides a path to this critical acceleration.”
See also Intra-African trade, digitalisation, hope for Africa’s economic transformation (Ghana News Agency)
UN deputy chief calls for major arms spending cuts and urgent action to save SDGs (UN News)
The UN Deputy Secretary-General on Monday urged global leaders to redirect resources from warfare to peace and sustainable development initiatives. Speaking on behalf of Secretary-General António Guterres, Amina Mohammed called for immediate and decisive action to salvage the faltering Sustainable Development Goals (SDGs). “Conflicts in Gaza, Sudan, Ukraine, and beyond are causing a devastating loss of life and diverting political attention and scarce resources from the urgent work of ending poverty and averting climate catastrophe,” she said at the ministerial meeting of the High-Level Political Forum (HLPF) on sustainable development.
Highlighting the critical state of the SDGs, Ms. Mohammed noted that only 17 percent of the targets are on track as the 2030 deadline approaches. “Future generations deserve more than 17 percent of a sustainable future,” she emphasized, outlining a four-pronged strategy for urgent acceleration in a bid to meet the 2030 deadline for the Goals.
The first step, she stressed, is to establish peace, underscoring that political and financial resources should be redirected from conflicts to development efforts. She also emphasized the importance of advancing green and digital transition, urging nations to enhance their climate action plans by 2025, aligning them with the 1.5-degree Celsius limit in line wit the Paris Agreement and invest in expanding digital connectivity.
Speaking on behalf of the five Regional Economic Commissions at the High Level Political Forum holding in New York, the ECA Executive Secretary Mr. Claver Gatete called on member states, partners, the UN system and all stakeholders to strengthen partnerships for “building effective, accountable and inclusive institutions to accelerate the achievement of Goal 16 of the sustainable development goals (SDGs).” SDG 16 provides the framework for peace, justice for all, and strong institutions, which are fundamental for accelerating progress of other SDGs and leaving no one behind.
Mr. Gatete outlined the following key actions extracted from his remarks, requiring urgent attention: First, it is imperative that we establish or strengthen governance institutions with clear mandates, robust structures and adequate resources (human and financial). Second, we must address the critical issue of insufficient and restricted access to data. Third, effective governance oversight is essential, bolstered by independent parliamentary and audit agency oversight. Fourth, improving access to justice and enhancing the professionalism of legal systems are paramount to achieving Goal 16. And fifth, combating corruption and illicit financial flows is crucial.
Messages from the UN Environment Assembly (UNEP)
Healthy ecosystems are essential for the air we breathe, the water we drink, and the food we eat. Managing natural resources sustainably is crucial for eradicating poverty and hunger, as well as reducing inequalities. However, our unsustainable patterns consumption and production are increasing the pressures on the planet’s natural resources, seriously impacting its ecosystems, and compromising sustainable development. SDGs including SDG 1, 2, 13, 16 and 17 – the focus of this HLPF – are badly impacted by the multiple crises we are facing today.
Unlocking Trade Through Economic Growth in the Middle East and North Africa (World Bank)
The Trade Facilitation Support Program in the Middle East and North Africa (MENA) region – funded by the Government of Sweden – aims to streamline trade processes, reduce costs, and enhance connectivity, thereby boosting regional and international trade. By aligning with international standards and focusing on inclusive growth, the program will drive economic development, reduce poverty, and create opportunities across the MENA region.
BRICS ‘Suspends’ Its Strategic Expansion: Implications And Challenges (Eurasia Review)
BRICS, most often described as an informal association comprising Brazil, Russia, India, China and South Africa, has unexpectedly backed away from its symbolic rhetoric of enlargement or expansion under Russia’s leadership. Their numbers are growing, according Sergey Lavrov, and to support his argument, he made reference to President Vladimir Putin who said at the G20 extraordinary summit on November 2023, that a “significant portion of global investment, trade and consumer activity is shifting to the Asian, African and Latin American regions, which are home to the majority of the world’s population.”
All about the G20 Task Force report on Digital Public Infrastructure (MEDIANAMA)
The G20 Digital Economy Ministers’ Meet (DEMM) Outcome Document defined DPI as “a set of shared digital systems that should be secure and interoperable, and can be built on open standards and specifications to deliver and provide equitable access to public and/or private services at societal scale and are governed by applicable legal frameworks and enabling rules to drive development, inclusion, innovation, trust, and competition and respect human rights and fundamental freedoms”. A recent report by India’s Task Force on Digital Public Infrastructure (DPI) defines what constitutes as DPI, and alternatively what does not, while also calling for open technology frameworks, greater market participation during implementation, and more.
World Economic Outlook Update, July 2024: The Global Economy in a Sticky Spot (IMF)
Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025. Services inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher for even longer interest rates, in the context of escalating trade tensions and increased policy uncertainty. The policy mix should thus be sequenced carefully to achieve price stability and replenish diminished buffers.
