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PCC, WWF welcome signing into law of Climate Change Bill (Engineering News)
The Presidency has announced that President Cyril Ramaphosa has signed into law the pdf Climate Change Bill (105 KB) , which sets out a national climate change response, including mitigation and adaptation actions, and also constitutes South Africa’s fair contribution to the global climate change response. The Climate Change Act, as endorsed by the President, enables the alignment of policies that influence South Africa’s climate change response, to ensure South Africa’s transition to a low-carbon and climate-resilient economy and society is not constrained by policy contradictions, the Presidency notes in a statement. The law also sets out to enhance South Africa’s ability and capacity over time to reduce greenhouse-gas (GHG) emissions and build climate resilience, while reducing the risk of job losses and promoting opportunities for new job opportunities in the emerging green economy.
The PCC has welcomed the signing of the Bill into law, which it says is South Africa’s first comprehensive legislation to encourage the development of an effective climate change response. “Undoubtedly, any successful climate action effort will require alignment of major socioeconomic, environmental and governance policies. We are entering a new phase of climate action and we believe the Climate Change Act, will foster institutional coherence and enhance climate change adaptation governance across the national, provincial and local layers of government.
Further, the WWF says this critical piece of legislation is the scaffolding upon which the nation’s approach to climate action will be built going forward.
New online information hub on South African scrap metal industry launched (Engineering News)
A new online platform called MyScrapMatters has been launched, acting as a single centralised hub to provide comprehensive information about the scrap metal industry in South Africa. The aim of the website is to assist in regulating scrap metal in the country by promoting transparency and addressing theft. The website also aims to promote sustainability in the scrap metal industry. The content on the website, which can be found at https://myscrapmatters.com, is reviewed and managed by international trade consultancy XA Global Trade Advisors to ensure the accuracy and reliability of the data provided.
“While data is abundant on the Internet, there is not a single centralised hub specifically for scrap-related content,” XA director Donald Mackay said on July 19, noting that the scrap metal industry in South Africa was an important contributor to national GDP, bringing in between R15-billlion and R20-billion a year, with about 2.5-million to 3-million tonnes of scrap metal recycled yearly.
Reducing poverty and inequality in Burkina Faso (UNCTAD)
Since Burkina Faso gained independence in 1960, successive governments have sought to promote economic growth in order to reduce poverty and inequality. Despite the adoption of a number of economic and social policies, Burkina Faso remains one of the Least Developed Countries (LDCs), with a large proportion of its population still living in poverty and inequality. In 2021, real GDP per capita was USD 740 per year, compared with an average of USD 1,053 for LDCs. Nearly four out of ten people live in extreme poverty, and according to the UNDP 2021-2022 human development report, Burkina Faso was ranked 184th out of 191 countries worldwide.
These results can be attributed, among other things, to the structural problems of its economy, manifested by (1) insufficient production capacity for goods and services, (2) the difficult transition from a highly centralised state economy to a market economy, (3) major political instability, (4) the geographical handicap of being landlocked, (5) external debt, (6) demographic factors, (7) shortcomings in the quality of institutions and governance, and (8) socio-cultural constraints.
The purpose of this report is to take a brief look at the economic and social policies implemented by the governments of Burkina Faso to reduce poverty and inequality from the 1990s to the present day. The report first analyses the results of these policies before the advent of the health pandemic, as COVID-19 drastically reversed the progress made. A section is devoted to the impact of the pandemic on economic growth, poverty and inequality.
UAE, Mauritius sign Comprehensive Economic Partnership Agreement (ARN News Centre)
The UAE and Mauritius have signed a Comprehensive Economic Partnership Agreement (CEPA), laying the foundation for increased bilateral trade between the nations under reduced restrictions. The agreement will ease barriers to trade by reducing tariffs and customs duties on different products. It is expected to increase trade between the two countries from AED 624 million to AED 1.8 billion over the coming years, benefiting sectors ranging from petrochemicals and aviation, to tourism and logistics.
“Today marks a historical moment in the economic relation between UAE and Mauritius after signing the Comprehensive Economic Partnership Agreement between both nations. This is an extremely important agreement for the private sector. It consists of more than 18 chapters on trading goods, trading services, investment, custom facilitation, small and medium enterprises,” Juma al-Kait, Assistant Undersecretary for International Trade Affairs and Chief Negotiator for the UAE, told the ARN News Centre.
COMESA-EAC-SADC Tripartite Trade Area to come into force 25th July, 2024 (EAC)
The COMESA-EAC-SADC Tripartite Free Trade Area (TFTA) Agreement, will come into force on 25th July, 2024 following the attainment of the required threshold. For the Agreement to take effect, at least 14 out of the 29 Member/Partner States needed to deposit their Instruments of Ratification. The entry into force of the Agreement follows the depositing of Instrument of Ratification by the Republic of Angola on 25th June, 2024, bringing the total number of the Instruments of Ratification deposited to 14, the number required for the Agreement to enter into force. This update was announced during the 37th Tripartite Task Force Meeting, which took place on 20th July, 2024 on the sidelines of the 6th African Union Mid-Year Coordination Meeting in Accra, Ghana.
H.E. Magosi also informed the meeting that on 20th June, 2024, the Republic of Djibouti notified the COMESA Secretariat that it had ratified the Agreement. The SADC Executive Secretary recalled that the Tripartite Summit of Heads of State and Government decided on 22nd October, 2008 to establish a Tripartite Free Trade Area (TFTA) among the COMESA, EAC and SADC blocs. “The objective of establishing the COMESA-EAC-SADC FTA was to enhance market access, address the issue of multiple memberships and further the objectives of cooperation, harmonisation, and coordination of policies among the three Regional Economic Communities (RECs),” he said. The 29 Tripartite Member/Partner States represent 53% of the African Union’s membership, more than 60% of continental GDP ($1.88 trillion), and a combined population of 800 million.
Accelerating Regional Integration in Central Africa: A Step Towards Implementing the AfCFTA (WCO)
Under the framework of the EU-WCO RoO Africa Programme, funded by the European Union, the World Customs Organization WCO, in partnership with ECCAS, UNPD, UNECA and PAIRIAC, organized a regional workshop to contribute to regional integration in Central Africa and accelerate the implementation of the AfCFTA Agreement. The workshop was held in Douala, Cameroon, from 15 to 17 July 2024.
The workshop provided a comprehensive overview of the AfCFTA and ECCAS rules of origin. Participants were presented with detailed information on the origin criteria, other origin provisions as well as procedural aspects such as origin certification and verification. The rules of origin determine whether a product is eligible for preferential treatment under the agreement, making it essential for businesses to understand and comply with these regulations.
The workshop also discussed aligning the ECCAS origin criteria with those of the AfCFTA. This alignment would ensure harmonization and simplification of trade procedures across the region. Finally, participants discussed a roadmap for operationalizing the ECCAS free trade zone. This zone aims to promote economic integration and cooperation among ECCAS member states by reducing or eliminating trade barriers. The roadmap outlined key milestones and timelines for implementing this initiative, including steps to be taken by governments, businesses, and other stakeholders.
Firm receives AfCFTA certificate of origin (The Nation Newspaper)
SecureID Limited has received the Certificate of Rules of Origin from the National Action Committee on the African Continental Free Trade Area (AfCFTA) Agreement. The award was presented during Nigeria’s inaugural shipment under the Guided Trade Initiative (GTI) framework, which was held in Lagos. SecureID’s selection for the certificate underscores the company’s commitment to excellence, best practices, and customer satisfaction.
AfCFTA Secretariat said as an industry pioneer, SecureID has always recorded many firsts, including being the first smartcard manufacturing company in Nigeria and sub-Saharan Africa, and the first to champion the transition from magnetic stripes to chip-based technology in payment cards in Nigeria, among others.
The Secretariat of the African Continental Free Trade Area (AfCFTA) and Africa’s leading TV media group, AFRICA24 have signed a Memorandum of Understanding aimed at promoting the Continental Free Trade Area and African Economic Integration through multiple high-impact actions.
Initialled at the AfCFTA secretariat’s headquarters in Accra by H.E. Wamkele MENE, Secretary-General of AfCFTA Secretariat, and Constant NEMALE, Founder of Groupe AFRICA24 (President of Afrimedia International), the Memorandum of Understanding will enable the concrete implementation of three major actions:
1. The promotion, through the AfCFTA Secretariat to all citizens, institutional partners, companies and organizations, of actions for the realization of priority projects such as infrastructure, energy, industry, transport, logistics, new technologies, and all initiatives to contribute to the accelerated development of Africa; 2. Promoting the value of African commercial enterprises, whose achievements contribute to the objectives of the AfCFTA on the entire African continent; and 3. Raising awareness among the continent’s citizens, young entrepreneurs and women, the pillars of development, of the assets and opportunities of the AfCFTA, which is to create a single continental market for goods and services, with free movement of people and trade flows.
AU Commission Chair Warns Budget Cut Threatens Key Projects (Business Day Africa)
The 6th Mid-Year Coordination Meeting of the African Union, which brings together Regional Economic Communities (RECs), Regional Mechanisms (RMs), and member states, commenced on July 18, 2024, with the 45th Session of the Executive Council. The two-day ministerial meeting addressed budget matters, adopted the African Union Budget for 2025, discussed the security status on the continent and peace financing mechanisms, and reviewed the progress on the implementation of the African Union theme of the year 2024 on education.
The AUC is experiencing a budget reduction of at least $200 million compared to the previous year, posing a significant challenge for the commission. “This budgetary reduction poses two structural problems: firstly, the AU’s increasing dependence on our partners, which is regularly criticised, even within your Council, and secondly, the fact that the AU’s budget has been reduced to a minimum,” Mahamat said.
US$62bn allocated to bridge Africa’s trade, investment gaps (The Business & Financial Times)
The Alliance of African Multilateral Financial Institutions (AAMFI) has jointly dedicated a US$62 billion fund to address the continent’s critical trade and investment gaps. The Alliance aims to collaborate to address Africa’s development finance needs, promote the interests of member states, advocate for Africa on global finance issues, develop innovative finance tools, support sustainable finance strategies, and coordinate debt management negotiations.
AAMFI or the Africa Club, as also called was launched in collaboration with the African Union Commission, by African Heads of state, on the margins of the 37th Ordinary Session of the Assembly of the Heads of State and Government of the African Union on the 17th of February 2024 in Addis Ababa.
Chairperson of the AAMFI Governing Council and President and Chair of the Board of Afreximbank, Prof Benedict Oramah, said the Alliance is a coming together of African Multilateral Financial Institutions, set up by treaty, by African states in response to the inadequacies of the global and continental financial architecture.
The Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, African Union Commission, Albert Muchanga, said the continent’s sustainable and accelerated development required a broadened collaboration, highlighting the significance of collaborating with institutions such as the African Credit Rating Agency.
According to H.E Muchanga, the goal to operationalize the African credit rating agency was previously decided upon. He indicated they are currently working with the African Peer Review Mechanism and African development bank to develop a plan for operationalizing the agency. The rating agency will provide second opinions on existing credit ratings from external sources, as well as undertake credit ratings of borrowers within Africa to help develop an African capital market.
Heads of State and Government, representing the Bureau of the Assembly of the African Union and Chairpersons of the Eight (8) Regional Economic Communities (RECs) as well as Regional Mechanisms (RMs) have adopted a Declaration of the 6th African Union Mid-Year Coordination Meeting which underscores the need to promote cooperation aimed at improving the standard of living for African citizens, maintain and enhance economic stability, foster close and peaceful relations among Member States, and harmonize national and regional policies to contribute to the development and the economic integration of the Continent.
The Heads of State and Government took note of the conceptualisation and development of the Africa Team Flagship initiative by the AU Commission and AUDA-NEPAD in cooperation with African Continental Free Trade Area Secretariat; the Africa CDC; the African Peer Review Mechanism; the Pan-African Parliament; and the Regional Economic Communities. The initiative is an AU Flagship Resource Mobilisation Programme for the acceleration of the implementation of Agenda 2063 Second Ten-Year Implementation Programme. The Programme is expected to be launched in 2025.
Underscoring the importance of continental integration and the effective coordination between the African Union and the regional economic commissions to address the economic, social and security challenges the continent faces, and which continues to negatively impact Africa’s development, H.E. Mohamed Ould Cheikh Ghazouani, President of the Islamic Republic of Mauritania, and Chair of the African Union called for better integration of national development plans into continental programmes. “This ensures a better integration of the continent and promotes the uniqueness of its voice at the global level, particularly at the United Nations, the WTO, the IMF and the World Bank, as well as at the G20, thus giving it the means to contribute to the articulation of global agendas on critical issues for Africa, such as the reform of the global financial architecture, international tax cooperation, reducing illicit financial flows, and actions for financing sustainable development.”
tralac Newsletter: AGOA Forum 2024
Here, we review recent developments related to the expected renewal of the African Growth and Opportunity Act. While recent events in US politics dominate global news, African countries keenly await progress on the AGOA renewal process, with the annual AGOA Forum set to take place in Washington, D.C. this week. South Africa will be paying particular attention to developments, after US legislation that would compel a thorough review of the United States’ bilateral relationship with South Africa recently overcoming its first hurdle in Congress.
AGOA – the African Growth and Opportunity Act – was first signed into law by President Clinton in May 2000. While not the first or only preference scheme available to African exporters shipping goods to the United States, ultimately AGOA built on the decades-old Generalised System of Preferences (GSP) that gave over 100 countries globally duty-free access to the US for several thousands of products, and signalled a significant upgrade in the hitherto marginal US focus on Sub-Saharan Africa. Until then, Africa seemed more of an afterthought, at best a source of minerals and metals, and a few manufactured and agricultural goods. AGOA changed much of that, and substantially improved on the scale and scope of preferences that the GSP offered but in particular the high level relationship (political, strategic, trade, military, development). While arguably under-utilised and perhaps leaving some of the high expectations unfulfilled – and not for a lack of preferential access that the legislation offers – AGOA has been a win-win for African exporters and workers, and US importers and consumers.
AGOA, extended three times previously (first to 2012, then to 2015, and finally to 2025), has its sunset clause set to September 2025. Serious efforts are underway to give AGOA a longer-term extension to 2041, alongside several substantive program changes that potentially broaden the scope of preferences while adding legislative and technical nuance to make AGOA more effective going forward, for deserving beneficiary countries.
Revising the African Growth and Opportunity Act: Perspectives from Africa (Stimson Center)
U.S. lawmakers are revising the African Growth and Opportunity Act with a view to extending the trade program for another 16 years. The legislation is regarded as the cornerstone of economic relations between the United States and African countries, and many in Washington argue that it has contributed to economic growth and prosperity among its participant nations. But some experts have identified flaws in the legislation, which they argue hinders AGOA’s benefits from being evenly distributed across the continent. To improve the program’s effectiveness, African perspectives should be taken into account and lawmakers should reconsider AGOA’s bilateral, non-negotiable terms, including the annual certification review process, which impedes sustainable growth for African firms.
In April 2024, lawmakers in the U.S. Congress introduced the AGOA Renewal and Improvement Act of 2024 to extend the African Growth and Opportunity Act (AGOA) for another 16 years.
But despite the rave reviews that the program has received in Washington, it has drawn more mixed reviews on the African continent. Many experts argue that the legislation lacked input from African partners at its conception and operational flaws hinder its effectiveness. In addition, they say that AGOA’s benefits have not been evenly distributed across the continent due to its rigorous eligibility requirements. Large economies oriented around extractive industries in Angola, Kenya, Nigeria, and South Africa have significantly benefitted from AGOA while smaller participant nations generally have not. As a result, African opinions about the agreement vary considerably.
Trade Minister Parks Tau to Boost South Africa-US Relations Amid Trade Review Concerns (iAfrica)
Trade and Industry Minister Parks Tau is spearheading a critical diplomatic effort in the United States this week as the global superpower contemplates a review of its trade relations with South Africa, Africa’s most industrialized economy. Tau and his team arrived in the US on Monday to attend the 21st African Growth and Opportunity (AGOA) Forum in Washington DC. The delegation comprises government officials, business leaders, and labor representatives.
Their mission is to address and mitigate concerns over the strained relationship between South Africa and the US. This visit follows a successful AGOA summit held in Johannesburg late last year, which was overshadowed by tensions related to South Africa’s perceived alignment with Russia. US officials had expressed apprehension over potential arms smuggling to Russia, leading some lawmakers to urge the White House to reconsider South Africa’s trade benefits.
POLITICO: Biden push for Africa trade bill stalled ahead of annual forum
WCO Secretary General addresses G7 Industry Stakeholders (WCO)
On July 16, 2024, Secretary General Ian Saunders delivered keynote remarks at the G7 Industry Stakeholders Conference in Reggio Calabria, Italy. This conference, sponsored by Confindustria, was held in the context of Italy serving as 2024 Chair of the Group of 7 (G7). In his address during the session titled “Reconciling Economic Security and Free Trade,” Secretary General Saunders emphasized the importance of government-industry partnerships in achieving economic stability and equity within a free market. He asserted that success in reconciling these objectives depends on establishing trust among all actors involved in international trade and that this trust must be built and maintained through concrete actions and processes, not just rhetoric.
Expert report to urge government synergy in tackling climate and sustainable development crises (United Nations)
A new report by a UN-convened expert group will urge governments to break down siloes at national and international levels to address the climate and sustainable development crises and achieve transformative change. On 16 July, the 2024 report of the Expert Group on Climate and SDG Synergy - co-convened by UN DESA and UN Climate Change (UNFCCC) - will be presented to delegates at a special event of the UN High-level Political Forum on Sustainable Development (HLPF) in New York.
The report comes at a crucial time. Goals for both the Paris Agreement and the 2030 Agenda for Sustainable Development are off track and we need accelerated implementation and synergistic action. Moreover, in 2025, countries are obligated under the Paris Agreement to put forward new and ambitious commitments through enhanced nationally determined contributions (NDCs). This presents a major opportunity to better integrate the Sustainable Development Goals (SDGs) and their own national priorities into their climate plans for accelerated impact.
UN leaders urge ‘maximum political will’ to rescue SDGs (UN News)
Top UN officials on Monday called for urgent reforms to the international financial system to boost efforts to achieve the Sustainable Development Goals (SDGs) by 2030. Addressing the preparatory committee (PrepComm) for the fourth International Conference on Financing for Development, UN Secretary-General António Guterres and Deputy Secretary-General Amina Mohammed highlighted the persistent challenges developing nations face and the imperative for ambitious global financial reforms.
Ms. Mohamed highlighted the disheartening reality that only 17 per cent of SDGs targets are on track, pointing to severe financial constraints facing developing countries. “Many developing countries cannot invest in their future as they struggle to meet their immediate needs: paying salaries and meeting debt service,” she said, adding that international capital is “flowing out of developing economies, rather than in”.
“The economic outlook for developing countries remains bleak. And while the global economy has been described as resilient – there is a soft landing in the North – but there is a crash landing in the South.”
G20 sees growing chance of soft landing for global economy in draft communique (The Straits Times)
Group of 20 finance leaders are expected to cheer the increasing likelihood of a soft landing of the global economy as inflation continues to come down from elevated levels, according to a draft communique seen by Reuters on Tuesday. The G20 finance ministers and central bank chiefs gathering this week in Rio de Janeiro are also expected to mention unspecified “wars and escalating conflicts” as a downside risk for the global economy, according to the document.
“We are encouraged by the increasing likelihood of a soft landing of the global economy, although multiple challenges remain,” the draft communique said. The document flags risks to the economic outlook that remain broadly balanced, with faster-than-expected disinflation and technological innovations cited among upside risks. On the other hand, the document notes downside risks such as escalating conflicts, economic fragmentation and persistent inflation keeping interest rates higher for longer.
G20 Social meets the Finance Track: sustainable financing and MDB reform are among the demands put forward (G20 Brasil 2024)
In an innovative session in Rio de Janeiro, civil society representatives presented the G20 Finance Deputies with recommendations focused on sustainable financing and combating climate change. The agenda also included the Multilateral Development Banks reform and the creation of standards for international taxation.
Measures for sustainable finance and against climate change; Multilateral Development Banks (MDBs) reform; facilitating access to finance for green infrastructure projects in the Global South; measures to reduce the regulatory burden on small and medium-sized enterprises and strengthen investments in emerging markets; and standards for international taxation and combating currency evasion. These were some of the recommendations made by civil society to the G20 Deputy Ministers of Finance and Central Bank vice presidents held on Monday, July 22, in Rio de Janeiro.
In an unprecedented session, representatives of 13 engagement groups (EGs) presented the forum with demands aligned with the Brazilian presidency priorities, the world’s largest economies the opportunity to receive and discuss the demands of global social organizations.
Members voice support for early start of Director-General selection process (WTO)
Fifty-eight WTO members took the floor at a 22 July meeting of the WTO General Council to voice support for a proposal from the African Group calling for an early start to the Director-General selection process and asking the incumbent, Ngozi Okonjo-Iweala, to make herself available to serve a second term. Members also considered proposals to set out a work programme for future negotiations on agriculture and to incorporate the Investment Facilitation for Development (IFD) Agreement into the WTO framework.
Quick links
De-dollarising to boost trade in Africa: opportunities and recommendations (Business Daily)
The AI apps helping the world’s low-income farmers work smarter (Devex)
Comment: Here’s how we can use AI to supercharge sustainable development goals (Reuters)
