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tralac Daily News

tralac Daily News

South Africa: African Development Bank approves ZAR 18.85 billion ($1 billion) corporate loan for Transnet’s business recovery plan (AfDB)

The African Development Bank Group has approved a ZAR 18.85 billion ($1 billion) corporate loan to Transnet, South Africa’s major freight transport and logistics company, for its recovery and growth plans. The 25-year loan approved by the Bank Group’s Board of Directors on Friday, 12 July 2024, is fully guaranteed by the government of South Africa. It will facilitate the first phase of the company’s ZAR 152.8 billion ($8.1 billion) five-year capital investment plan to improve its existing capacity ahead of expansion for the priority segments throughout the transport value chain.

Transnet has faced operational challenges mainly in the critical rail and port businesses resulting from underinvestment in infrastructure and equipment, theft and vandalism, and external shocks such as floods and the effects of the COVID19 pandemic. The recovery plan, launched in October 2023, seeks to rehabilitate the infrastructure and accelerate the relaunch of operations over 18 months, focusing on restoring operational performance and freight volumes to meet customer demands.

China looks to South African food exports as way of reducing reliance on US and Australia (South China Morning Post)

South Africa has been China’s largest trading partner in Africa for 14 consecutive years, and in the first half of this year, the value of that trade hit US$27.5 billion, according to China’s General Administration of Customs. In the same period, imports from South Africa rose by 10.7 per cent to US$17.29 billion year on year, but Chinese exports to the African nation dropped by 18.6 per cent in that period to US$10.2 billion.

South Africa’s exports to China are predominantly minerals or metals, but more recently it has started buying products such as soybeans, wine, rooibos tea, aloe gel and citrus fruits. And later this year, South Africa is expected to start exporting avocados after the two countries signed a deal at the Brics Summit in Johannesburg last year.

Derek Donkin, chief executive of the South African Subtropical Growers’ Association, said Chinese inspectors were coming to South Africa this month for a final inspection before exports could start. “We hope to be able to send the first shipment soon after that if the inspection goes well,” Donkin said. South Africa will become the third African country after Kenya and Tanzania to export avocados to China.

Uganda’s state of digital economy: A future of endless possibilities (Pulse Uganda)

Joe Kigozi, in his opening remarks, emphasized the importance of understanding, embracing, and customizing digital solutions for all Ugandans. “The digital economy is the new oxygen we are breathing; it is something we must understand, embrace, and find ways to customize for people without internet access.” This powerful analogy underscores the indispensable nature of the digital economy in modern life.

Panelists from various sectors shared their perspectives, emphasizing the importance of collaboration between private sector players and government in driving the digital economy. Cente Technologies, a subsidiary of the Centenary Group, expressed its excitement about participating in the initiative. “We are thrilled to be part of this initiative because it represents the way forward for Uganda,” remarked David from Centenary Group. The Ministry of ICT’s efforts in promoting digital literacy, improving infrastructure, and implementing supportive policies are crucial for the widespread adoption of technology across the country.

Tech Investors Urged To Key Into $32.9trn Eco-Digital Economy (New Telegraph)

As the world grapples with sustainability and technological advancement, a new horizon emerges in the form of the ecodigital economy. This growing field combines environmental consciousness with digital innovation and is poised to redefine the landscape of business and society. At the heart of this transition is the realisation that while organisations are increasingly adopting digital solutions, they have only tapped into approximately 25 per cent of their potential. This untapped reservoir of opportunity could lead to an eco-digital economy worth an estimated $33 trillion by 2028, a staggering increase from current levels.

A recent report by the Capgemini Research Institute, in collaboration with the Digital Value Lab at the Digital Data and Design Institute at Harvard, sheds light on this phenomenon. The findings reveal that digital technologies have significantly impacted energy consumption by nearly a quarter and slashed greenhouse gas (GHG) emissions by 21 per cent over the past five years. These figures underscore the pivotal role of digital solutions in driving economic growth and fostering environmental and social responsibility.

UNDP and Seychelles Discuss Expanding Initiatives for Sustainable Development (TechAfrica)

The United Nations Development Programme (UNDP) Resident Representative to Seychelles, Ms. Amanda Serumaga, recently outlined key initiatives aimed at bolstering the country’s policies, institutional capacities, and resilience to achieve sustainable development outcomes.

In a meeting held on 16 July at Maison Quéau de Quinssy with the Principal Secretary of the Foreign Affairs Department, Ms. Vivianne Fock Tave, and the Principal Secretary for Tourism, Ms. Sherin Francis, discussions also focused on the potential expansion of UNDP programmes. These expansions aim to include foreign investment, digitalization, capacity development, and cultural tourism initiatives. The collaborative efforts between the UNDP and Seychelles are set to strengthen the nation’s ability to meet its development goals and foster a more resilient and sustainable future.

Morocco’s Economy Proves Resilient but Private Sector Faces Challenges (World Bank)

Despite various obstacles, including a slowdown in the global economy, an inflation shock, and the Al Haouz earthquake, the Moroccan economy has shown resilience and has accelerated, with real output increasing by 3.4 percent in 2023, according to the World Bank’s latest economic monitor for the country.

Growth was driven by a rebound in tourism, strong performance in export-oriented manufacturing sectors such as automobiles and aeronautics, and a resurgence in private consumption. Supportive macroeconomic policies, including public sector expansion and fiscal consolidation strategies, have contributed to this economic acceleration. Morocco has also seen a substantial increase in foreign direct investment, which present significant development opportunities, and a decline in the current account deficit to its lowest level since 2007.

“This report highlights the crucial role of productivity in enhancing a country’s economic growth and standard of living, in alignment with the New Development Model (NDM) and Morocco’s long-term inclusive development vision,” said Ahmadou Moustapha Ndiaye, World Bank Maghreb and Malta Country Director. “The country has made significant progress recently, including the operationalization of the Competition Council, amendments to the Competition Law, and a landmark antitrust settlement with fuel distributors. To build on these advancements, and as highlighted in the NDM, continued efforts will need to be made, particularly in support of small and medium-sized enterprises.”

Mozambican Farmers Gear Up for Planting Season with Timely $2 Million Fertilizer Financing Boost (AfDB)

With the planting season fast approaching, Mozambican farmers are busy preparing their fields. Fertilizer is crucial for a successful harvest, and many farmers are lining up to secure supplies. Mozambique’s planting season kicks off in September, when the southern provinces receive their first rains, while the north waits until December. The northern and central provinces, with their fertile soils, are the country’s agricultural breadbasket. In the south, the soil is poorer, rainfall is scarce, and droughts and floods occur frequently.

This year, Mozambique’s farmers are getting a much-needed helping hand. On June 14, 2024, the Africa Fertilizer Financing Mechanism and its implementing partner, the African Fertilizer and Agribusiness Partnership (AFAP) launched a $2 million fertilizer financing project. This project, dubbed Fertilizer Financing for Sustainable Agriculture Management in Mozambique, aims to boost access to fertilizer for 300,000 smallholder farmers and increase their productivity and wealth, over the next three years.

Capitalise on AfCFTA opportunities to strengthen industry – Bawumia to petroleum sector players (MyJoyOnline)

Dr Mahamudu Bawumia, the Vice President, has urged players in the petroleum industry to take advantage of opportunities presented by the African Continental Free Trade Area (AfCFTA) to strengthen the sector and promote sustainable development. He said the AfCFTA offered great opportunities for the petroleum downstream industry, indicating that with the removal of trade barriers, AfCFTA had the potential to enhance market access, stimulate investment, and drive economic growth.

Held on the theme: “The Petroleum Downstream: Building a Future for Growth, Efficiency, and Sustainability”, a two-day conference brought together local, regional and international petroleum downstream experts, leaders, and innovators. The key objective was to discuss the regulatory frameworks and other related issues in Ghana’s downstream petroleum sector. Dr Bawumia said the petroleum industry grappled with many challenges – from geopolitical tensions to technological advancements and environmental concern. Additionally, he said, today, industry boundaries were blurring because several oil and gas companies were extending beyond traditional revenue streams.

Ghana eager to partner with Kenya to promote AfCFTA (MyJoyOnline)

The National Coordinator of the Africa Continental Free Trade Area (AfCFTA), Dr. Fareed Kwesi Arthur has assured of Ghana working closely with Kenya to deepen regional integration and trade. He asserted that both countries have the capabilities to work together towards a successful implementation of AfCFTA, thus building a strong regional economy. Dr. Fareed Arthur made these comments when a delegation of business executives from Kenya paid a courtesy call on him at the Africa Trade House in Accra. The delegation was in the country to meet a cross-section of the Ghanaian business community to discuss trading under AfCFTA.

Dr. Fareed said the government realising the importance of AfCFTA, established a national secretariat to coordinate and facilitate the activities of all related agencies. This leans towards achieving the objectives of AfCFTA and contributing to building a resilient economy for Ghana. He said Ghana and Kenya were among the first countries to ratify the AfCFTA agreement hence the need to work together and provide the needed leadership to rope in other countries. He announced that a one-stop shop has been established in Nairobi, Kenya, to promote Ghanaian products in the East African country, adding that the initiative would be replicated in other African countries.

“Government through the Ghana Export Promotion Authority (GEPA) has opened a Ghana Trade House in Nairobi, Kenya where finished products of some Small and Medium Enterprises (SMEs) in Ghana are on display. This is the first among others to be opened across Africa”, he said.

Uganda Airlines to launch Abuja, Harare and Lusaka flights (The East African)

Uganda Airlines on Wednesday announced new services to Abuja, Lusaka and Harare in a bid to increase revenue, improve fleet utilisation and position itself for further market expansion. The Abuja service, operating two times a week, will be launched on September 12, 2024, with Lusaka and Harare to follow two weeks later. The latter two, operating four times a week, will be a triangular operation alternating between Entebbe-Lusaka-Harare back to Entebbe, and Entebbe-Harare-Lusaka-Entebbe.

The new services would increase the airline’s destinations from 13 to 16. They are also expected to increase efficiency by creating a network effect, where the new services feed traffic to other destinations. “Launching these routes marks the conclusion of our three-year strategic plan, paving the way for the next phase of our 10-year rolling plan,” CEO Jenifer Bamuturaki said.

“Our aspiration is to bridge the geographical gaps and connect East to West, North and South of Africa. This vision guides our route expansion, which is informed by feasibility studies pointing us to underserved routes,” Ms Bamuturaki said, while defending the decision to expand into what some perceive as grey markets fraught with commercial risk.

Infrastructure Africa Forum Highlights: AUDA-NEPAD Hosts Pivotal Infrastructure Project Deal Rooms (NEPAD)

Africa’s infrastructure development is critical to its economic growth and sustainable development. Infrastructure Africa Forum 2024, held at the Cape Town International Conference Center on 16-17 July 2024, was therefore dedicated to addressing the challenges and opportunities in Africa’s infrastructure sector.

Dr. Towela Nyirenda-Jere, AUDA-NEPAD Head of Infrastructure, Digitalisation and Energy, participated in panel discussions on cross-border infrastructure development, focusing on the role of regional cooperation and economic integration. Dr Nyirenda-Jere spoke on the critical role for the private sector in cross-border infrastructure development. She noted that private sector participation in these projects amounts to less than 5% of total investments. “We need to address the challenge of financing for early-stage project preparation that would help to unlock and catalyse further investments upstream, especially from private sector. Working with member states, AUDA-NEPAD aims to contribute to the enabling environment that private sector often quotes as a pre-requisite for their investment”, she said.

Balancing development and sustainability: The Lagos-Calabar coastal highway (Ventures Africa)

Large-scale infrastructure projects are important components of every modern economy, underpinning progress and development on an exceptional scale. From highways and bridges to energy plants and water systems, these projects are the backbone of global growth, fostering connectivity, economic dynamism, and enhanced quality of life. However, this rapid development often comes at a significant environmental cost, threatening ecosystems, draining natural resources, and intensifying climate change.

The Lagos-Calabar Coastal Highway, a monumental infrastructure project which promises to transform Nigeria’s southeastern coastline, spanning 700 kilometres, stands at the intersection of progress and environmental stewardship. This ambitious undertaking promises to enhance regional connectivity and economic vitality and set a new benchmark for sustainable development practices in Nigeria.

While large-scale infrastructure projects often raise environmental concerns, this highway presents unique opportunities for positive environmental impacts. By integrating sustainable development practices and environmental conservation efforts, the Lagos-Calabar Coastal Highway is set to serve as a model for environmentally responsible infrastructure development in other developing countries.

ECOWAS Calls for Swift Implementation of Single Currency Program (Foroyaa Newspaper)

The Economic Affairs and Agriculture Department of the ECOWAS Commission has called for the expedited implementation of the single currency program. This recommendation was presented in a report to the Sixth Legislature of the ECOWAS Parliament on Monday, 15 July 2024, during its First Ordinary Session. The report highlighted numerous challenges faced by the department and proposed solutions, with a key emphasis on implementing the single currency program. “It is crucial to build consensus between Member States to fast-track the implementation of the ECOWAS Single Currency Programme and provide the Department with the necessary human resources to enable it to carry out its mandate timely,” the report revealed.

Despite continuing to implement approved activities and work programs, the department faces significant challenges. These include non-tariff barriers to the free movement of people and goods, economic and financial volatility due to domestic and external shocks, climate change, recurring farmer/herder conflicts, and insecurity due to armed conflicts, which have resulted in food insecurity for millions in the region.

The report pointed out that the lack of consensus among Member States and insufficient human resources have delayed the creation of the single currency. To address these issues, the report suggested strengthening awareness among States for compliance with community texts, implementing rigorous economic policies, promoting peaceful coexistence, and combating terrorism and violent extremism.

AfCFTA: Nigeria, Africa must export their way out of poverty, depression - Awolowo (Daily Trust)

The National Coordinator of the National African Continental Free Trade Area (AfCFTA), Segun Awolowo, has said that Nigeria, and indeed Africa, must export their ways out of poverty by adequately implementing the agreement. Awolowo spoke at the launch of Nigeria’s inaugural shipment under the Guided Trade Initiative (GTI)/AfCFTA Framework held at the Apapa Port in Lagos. He said, “The only and most sustainable path to prosperity is through trade.”

The coordinator said Nigeria’s commitment to AfCFTA would “provide a fillip to our aspirations for the industrialisation and diversification of our economy, attracting the much-needed participation and investment capital to drive development on key goals under the Renewed Hope agenda of this administration.” Awolowo applauded the pioneering 10 companies exporting Nigerian products to East, Central and North African countries. “As we embark on this journey, let us remain resolute in our collective effort to make AfCFTA a success.”

Tema Port ready for African Continental Free Trade Area (MyJoyOnline)

African Continental Free Trade Area (AfCFTA). She indicated the Tema Port is positioned to deliver efficient port services to facilitate and ensure a successful implementation of the agreement which seeks to promote intra-Africa trade. Mrs. Sandra Opoku disclosed this when a business delegation from Kenya paid a visit to the port. The delegation was acquainted with the operations of the port, received first-hand information on operations, and had the opportunity to discuss trading seamlessly with their Ghanaian counterparts.

Chief Executive Officer of Eminence Global of Kenya, Mikaela Mwangura indicated that her outfit identifies Ghana as an important trading point in the West African Sub-Region hence the visit to establish partnerships between entrepreneurs from Kenya and Ghana. She believes both countries have the potential to promote intra-trade on the continent, as envisioned by AfCFTA. Ms. Mwangura, therefore, requested port authorities in Ghana and Kenya to firm their collaboration to ensure swift freight forwarding between both countries.

African Union Development Agency outdoors Guide for Country Impact Assessments (Ghana News Agency)

The African Union Development Agency with support from the Japan International Cooperation Agency (JICA) has launched a “Guide for Country Impact Assessments” for Accelerated Industrial Development for Africa (AIDA) and the African Continental Free Trade Area (AfCFTA). The Guide offers assessments tools and indicators for national, regional and continental authorities to evaluate the impact and progress of the AIDA and AfCFTA in their respective countries and the region as a whole.

Madam Nardos Bekele-Thomas, Chief Executive Officer of the African Union Development Agency, at the launch, said the assessment guide would help countries and development partners to work from the same template in advancing trade, industry and economic integration on the continent. Also, it supports countries to identify key areas for improvement, foster deeper economic integration, and align their industrial policies with continental objectives.

pdf Guide for Country Impact Assessments on Accelerated Industrial Development for Africa (AIDA) & the African Continental Free Trade Area (AfCFTA), July 2024 (1.81 MB)

20 years of ECOSOCC: CSOs to advance implementation of AfCFTA (Ghana News Agency)

The Economic, Social, and Cultural Council (ECOSOCC), as part of its 20th anniversary of fostering collaboration between the African Union and Civil Society Organisation (CSOs), is scheduled to host an engagement on the implementation of the AfCFTA Policy Network(APN). To commemorate this significant milestone, the West Africa Civil Society Institute (WACSI) and the APN will host the engagement on July 20, 2024, on the theme: “The Role of CSOs in Advancing the Implementation of the AfCFTA”.

The event will underscore the vital contributions of CSOs to the successful implementation of the African Continental Free Trade Area (AFCFTA). It will focus on advocacy, policy analysis, and the equitable distribution of benefits, equipping CSOs with the knowledge and tools to effectively support AfCFTA’s objectives.

Emmanuel Korbla Bensah Jr, Deputy Executive Director, Regional Integration, AfCFTA Policy Network (APN), said, “If AfCFTA is a gamechanger, then this collaboration with WACSI in amplifying civil society perspectives in its implementation is even more so.” He said AfCFTA recognized WACSI’s expertise in creating new narratives around civil society work and were proud to partner with them.

US retreat from African allies cause for alarm, says lobbyist Altmire (BusinessLIVE)

Former US Congress member Jason Altmire has raised concern about the Republican Party’s moves towards isolationism and his country’s apparent retreat in extending economic support to its African allies. Speaking during a bipartisan webinar arranged by the US embassy in Pretoria on Tuesday evening, Altmire, now a lobbyist and author, said there was a concerning view among some politicians, especially in the Republican Party, that the US should reassess its role of exercising leadership worldwide.

United Kingdom Partnering African Countries to Remove Trade Barriers for Economic Growth – UK Trade Commissione John Humphrey (This Day Live)

Q: As His Majesty’s Trade Commissioner for Africa, HMTC, for Africa, what are the plans to boost the volume of trade deals with Africa, especially in Nigeria?

A: Africa matters. We want to foster opportunities for mutual-long term benefit. By 2050, Africa’s population will reach 2.4 billion – a quarter of the world’s population – with a median age of just 19. African markets will grow in real GDP terms by nearly 5% per annum between now and 2050. We have nine trade agreements with 18 African countries, and a further 34 countries, including Nigeria, have access to the UK’s market through the Developing Countries Trading Scheme.

Our approach has always been built on understanding African buyer needs, helping to match real projects with UK companies and UK capability. And this process works. We have supported about100 substantial deals over the last year or so. We have also built a team that has extensive UK sectors expertise, to offer African buyers a better set of links into UK companies, and more expertise on UK solutions. We are also increasing our activities with UK SMEs interested in Africa.

More nations interested in joining BRICS (China Daily)

Following its expansion at the beginning of this year, BRICS is increasing its appeal to developing nations, which analysts said reflects the common desire of the Global South to build a more just and equitable world order against Western dominance. Last month, Zimbabwe announced its interest in joining the BRICS grouping for an opportunity to access new markets and investment opportunities as well as grow its economy. Oppah Muchinguri-Kashiri, the country’s defense minister, made the announcement at the “World Majority for a Multipolar World “international inter-party forum with BRICS and partner countries held in Russia.

Cavince Adhere, a Kenyan expert on international relations, said BRICS formation provides Zimbabwe with a family that respects its own unique internal conditions but at the same time allows it to play on the global stage. In addition, by joining BRICS, Zimbabwe will be provided with alternative markets for its natural resources, as the country is unable to do business with Western countries due to sanctions, he said.

Paul Frimpong, founder and executive director of the Africa-China Centre for Policy and Advisory, said more than 40 countries have expressed interest in joining BRICS, indicating the attractiveness of the bloc. “BRICS attracts a diverse group of potential members because of its primary-driven shared desire to create a more equitable global landscape that many countries believe is currently biased against them,” he said. Frimpong said the BRICS countries’ push to represent a collective voice for the Global South in international forums like the World Bank and the International Monetary Fund, or IMF, is one of the reasons countries are interested in joining the bloc.

Stark disparities persist on path to global goals. Here’s what the data tell us (UNCTAD)

The SDG Pulse 2024 released on 8 July provides a global reference for tracking developments related to the implementation of the 17 Sustainable Development Goals (SDGs).The annual statistical publication, now in its sixth edition, paints a mixed picture of how the world is faring on the global goals, highlighting the stark disparities that remain despite significant advancements.

“This report serves as a call to action, urging policymakers, businesses, and civil society to leverage its insights to drive meaningful change,” says UN Trade and Development Secretary-General Rebeca Grynspan, “The time for data-informed action is now.” The SDG Pulse 2024 comes on the heels of recent findings from the United Nations that only 17% of the SDG targets are on track, though the world is more than halfway along the timeline of the 2030 Agenda for Sustainable Development. Its data and analysis cover a wide range of SDG indicators relevant to trade, investment, financing for development, debt, transport, and technology. It also features an “In focus” section on gender equality in international trade, based on a new set of indicators that reveal persistent gaps, urging targeted policies for women’s economic empowerment.

Integrated Approaches to Climate, Biodiversity, and Food Security Action (SDG Knowledge Hub)

With just under six years remaining to implement the 2030 Agenda for Sustainable Development, the Sustainable Development Goals Report 2024 paints a stark picture of progress so far, finding that only “17 per cent of the SDG targets are on track, nearly half are showing minimal or moderate progress, and progress on over one third has stalled or even regressed.” Yet a deeper dive into the report illuminates opportunity, as achieving even one SDG can bolster progress on several others. This is especially clear when looking at the nexus between food (SDG 2), climate (SDG 13), and biodiversity (SDGs 14 and 15).

Taking a closer look at the complex connections highlighted in the SDG report, it is clear that the lack of progress on one SDG is creating a bottleneck for progress across other Goals. The report highlights that, over the past two years, climate records have been “shattered” and we have reached a new record high in global greenhouse gas (GHG) emissions. Meanwhile, it clearly states that “to achieve Goal 2, significant efforts are needed to mitigate the impacts of climate change” and cites rising global temperatures as a factor in achieving SDGs 14 and 15, particularly through diminishing marine and mountain biodiversity and ecosystems. At the same time, the report notes that “agricultural expansion drove almost 90 per cent of global deforestation” with animal agriculture as one significant driver, and that “reducing deforestation depends on improving food security.”

The complex web of interlinkages between climate, food security, and biodiversity demonstrates the need for integrated approaches and policy coherence. Policy solutions that advance mitigation cannot come at the expense of public health or biodiversity. For instance, the intensification of animal production often relies on the high use of antimicrobials, which contributes significantly to antimicrobial resistance and poses risks to SDG 3 (good health and well- being). To implement the SDGs by 2030, countries must prioritize policy solutions that simultaneously contribute to mitigation and food security while stemming biodiversity loss and deforestation.

Clarivate Annual G20 Scorecard Examines Global Research and Innovation Trends Across G20 Members (PR Newswire UK)

Clarivate Plc, a leading global provider of transformative intelligence, today released its annual G20 scorecard, compiled by expert analysts and data scientists at the Institute for Scientific Information (ISI). The annual G20 research and innovation scorecard examines the research and innovation capabilities of each G20 member through dynamic, interactive data visualizations. This year, for the first time, the report includes data for the European Union and the G20’s new permanent member, the African Union.

The scorecard is designed for the responsible evaluation of the research and innovation capabilities of the G20 members, including new data points that illuminate collaborative impact and demonstrate the effect of research and innovation on society in the form of patent to paper citations. It also contains expanded analyses of data on the research focused on the UN Sustainable Development Goals (SDGs), examining the collaborative and accessible nature of this research. It publishes ahead of the G20 summit in Rio de Janeiro, Brazil on November 18-19 and is freely available to explore on Clarivate.com.

Gordon Rogers, Senior Manager, Data Science at the Institute for Scientific Information at Clarivate, said: “The inclusion of the European and the African Union in the 2024 scorecard for the first time marks a pivotal expansion in our analysis to reflect a more comprehensive and inclusive view of global research dynamics. This broader perspective allows for a deeper understanding of the diverse and collaborative efforts needed to address global challenges and advance sustainable development goals.”

Some G20 financial regulators overlooking risks linked to nature loss, watchdog says (Reuters)

Financial regulators and supervisors in some G20 countries are overlooking the risks posed by biodiversity loss and deforestation because of insufficient data, focusing instead on climate risks, a report by the G20’s financial watchdog found. Regulators who have assessed nature-related risks found that biodiversity and nature loss could result in credit losses, defaults and abrupt price corrections that pose financial risks to banks and other institutions, said the report released on Thursday by the Financial Stability Board (FSB). But some are yet to even assess these risks, it said.

Financial institutions face exposure to physical risk via their investments and financing activities in sectors related to nature such as food production. The FSB said more work is needed before they can translate estimates of financial exposures into measures of risk.

Physical risks can arise from the degradation of nature such as a decline in pollinating insects essential for food production or the degradation of agricultural land. That differs from transition risks, which arise from actions and polices aimed at protecting, or reducing negative impacts, on nature. The study comes ahead of the United Nation’s COP16 biodiversity conference in Colombia in October where world leaders are under growing pressure to prevent further destruction of key ecosystems.


Quick links

Lack of African data causing ‘policy missteps’ (SciDev.Net)

Preventing deforestation while leveraging trade for development (World Bank Blog)

G20 finance ministers in Rio: a “make or break” meeting for Brazilian G20 presidency (E3G)

Facilitator, co-convenors update members on dispute settlement reform work (WTO)

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