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Minister Tau concludes a successful visit to the United States (the dtic)
The Minister of Trade, Industry and Competition, Parks Tau concludes a successful visit to the United States. The Minister was accompanied by a high-level delegation comprising the Deputy Minister of Trade, Industry and Competition, Andrew Whitfield, government officials, private sector and organised labour. The purpose of the visit was to participate in the 21st Africa Growth and Opportunity Act (AGOA) Forum held on 22-26 July 2024, following successful hosting of the 20th AGOA Forum in November 2023, in Johannesburg. With AGOA expiring in 14 months, the African Ministers of Trade urged the Biden Administration and the Members of US Congress, for expeditious renewal of AGOA with non-controversial enhancements and amendments for a minimum of 16 years to provide the required predictability and certainty to buyers, exporters, and investors.
They called for the renewal of AGOA to be concluded by the end of 2024. There was agreement to promote stronger and closer investment relations to complement AGOA and change the structure of Africa’s trade towards value-added exports. “We welcome the support expressed by both the Biden Administration and Members of Congress for the renewal of AGOA” said Tau. The Forum also highlighted the critical role that South Africa plays in the development of regional value chains on the African continent in a number of sectors, including the auto sector.
There was broad support for strengthening bilateral trade and investment relations between South Africa and the United States. “We welcome the positive discussions with the US Trade Representative, Ambassador Tai and the agreement by both sides to resuscitate the Trade and Investment Framework Agreement (TIFA) at a Ministerial level, that last met in 2014. We instructed our officials to prepare for our first meeting which will provide a good platform for constructive discussions and effective resolution of trade related matters from both sides. The resuscitation of the TIFA provides new impetus to our strategic partnership” said Tau.
Minister Parks Tau briefs media on outcomes of AGOA Forum and BRICS Trade Ministers Meetings, 30 Jul (the dtic)
The Minister of Trade, Industry and Competition, Mr Parks Tau will brief the media on the outcomes of the African Growth and Opportunity Act (AGOA) Forum which he attended in the United States of America with Deputy Minister, Mr Andrew Whitfield; and the BRICS Trade Ministers Meeting, that Deputy Minister, Mr Zuko Godlimpi attended in Russia.
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Date: Tuesday, 30 July 2024
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Time: 11:00
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Venue: Imbizo Media Centre, 120 Plein Street, Parliament, Cape Town
Digital Press Briefing on Outcomes of the AGOA Forum 2024 (US Department of State)
Assistant U.S. Trade Representative for Africa Constance Hamilton: During the ministerial, the U.S. delegation highlighted our continued commitment to AGOA and hosted a number of conversations on a broad range of issues, including how to increase use of the program, how to better promote worker-centric trade policies, and how to better strengthen the partnerships to drive economic opportunity for both Americans and Africans. We explored barriers that women, youth, micro- and small- and medium-sized enterprises, and the African diaspora face in assessing trade and investment opportunities. We explored how to better use the multilateral trading system to benefit more people, especially those in underserved communities.
We also discussed opportunities to modernize the AGOA program to realize its full potential as a tool for development and to support regional economic integration, and we discussed how the United States and AGOA partners can collectively create and promote stronger, high-standard investment opportunities. Discussions also reaffirmed President Biden’s strong support for the modernization and reauthorization of AGOA.
We were very pleased with the conversations we had with members of the U.S. Congress and their stated bipartisan commitment to reauthorization and their willingness to explore how can we modernize the legislation.
U.S. Department of State’s Deputy Assistant Secretary for African Affairs Joy Basu: AGOA is, yes, an important cornerstone of our trade and investment relationship with Sub-Saharan Africa, but there are many other programs that work in a symbiotic way with AGOA, which were also featured very prominently at our forum. We have got tools at the State Department, at USTR, at USAID, Prosper Africa, the Department of Commerce, the Department of Trade, to really enhance not only economic activity and economic prosperity in Sub-Saharan but to really strengthen the partnership between the United States and Africa, and to truly ensure that we’re building a modern, 21st century economic partnership that not only lifts up our people and meets the needs of our communities but shows leadership for the world.
And as we talk about those programs that AGOA is a part of a suite of tools the United States Government uses for that end, I think our goal for these other programs is by increasing the capacity of African companies to have goods and services to be trading that therefore AGOA utilization will be increased; and also by increasing AGOA usage across all the countries that are eligible, our other tool, both in a purely financial and economic sense, but also broader partnership tools will also be utilized.
Bilateral relations: Nigeria, US sign MoU to boost trade, investment (Vanguard)
The Federal Republic of Nigeria and the United States of America have taken a significant step towards strengthening their economic ties by signing a Memorandum of Understanding, MOU, on Commercial and Investment Partnership. Dr. Doris Nkiruka Uzoka-Anite, Minister of Industry, Trade and Investment, and Gina M. Raimondo, U.S. Secretary of Commerce signed the agreement on the sidelines of the 2024 AGOA Forum in Washington DC.
The MOU aims to deepen bilateral commercial and investment ties between Nigeria and the United States through collaboration to enhance the business environment, facilitate private sector-led trade and investment projects, develop direct business relations, and implement actions for a mutually beneficial trade and investment relationship.
The agreement focuses on key economic sectors including infrastructure, agriculture, sports and the digital and creative economy, as well as cross-cutting areas such as investment promotion and regulatory reforms. In addition to the MOU, both countries issued a joint statement outlining new avenues of commercial cooperation and affirming shared priorities on the digital economy, demonstrating a comprehensive approach to enhancing bilateral economic relations.
South Africa Supports WTO Reforms that Promote Development - Deputy Minister Godlimpi (the dtic)
The Deputy Minister of Trade, Industry and Competition, Mr Zuko Godlimpi says South Africa supports the strengthening of the multilateral trading system and the World Trade Organisaiton (WTO) reforms that promote development. Godlimpi was speaking at the 14th BRICS Trade Ministers Meeting in Moscow, Russia yesterday.
“South Africa supports the strengthening of the multilateral trading system and the WTO reforms that promote development. Strengthening the rules-based multilateral system is essential, especially to protect developing countries against the interplays of power. We can use the system to pursue our shared development interests. It is important that we amplify our voice and build a critical mass that orients the multilateral trading system towards promoting development,” said Godlimpi.
“Multilateralism today is under threat from global fragmentation as a result of geopolitical frictions. This fragmentation does not bode well for the resilience of global supply chains, and could set back the gains developing countries have made over the years. We need to push back, defend the foundational principles of these institutions, and strive for meaningful development outcomes,” said Godlimpi. He also emphasised the importance of building effective joint value chains (JVCs) for promoting industrialisation and enabling BRICS countries to integrate into the global economy on beneficial terms.
SAPA asks, once again, that chicken products be made VAT-free (Engineering News)
With President Cyril Ramaphosa looking to expand the basket of essential food items that are exempt from value-added tax (VAT) under the Government of National Unity, the South African Poultry Association (SAPA) strongly advocates for targeted chicken products to be included in that basket.
SAPA says lower food prices will alleviate pressure for low-income households, particularly as chicken is South Africa‘s most popular and affordable meat source. Chicken accounts for 66% of all meat consumed in the country.
The basket of zero-rated food items was last reviewed in 2018 after the VAT rate was raised to 15% from 14%. SAPA proposed back then that individually quick frozen chicken portions be exempt from VAT owing to its importance in the diet of millions of poor people; however, owing to differences in the review panel, chicken was not included in the expanded list of VAT-exempt food products.
SAPA cites the Competition Commission’s finding that more consumers are buying tinned pilchards, which are mainly imported, but VAT-exempt, while chicken is not. Other food items that are exempt from VAT are brown bread, maize meal, samp, rice, fresh vegetables and fruit, vegetable oil, milk, eggs, pilchards and legumes.
Tanzania unveils updated trade policy to drive economy (The Citizen)
The government has come up with a revised trade policy that seeks to accommodate new developments such as regional trade agreements, technological advancement and climate change, among other local and global issues. The National Trade Policy 2003 was revised last year and will be officially inaugurated by deputy Prime Minister, Dr Doto Biteko, tomorrow, according to the Minister for Trade and Industry, Dr Selemani Jafo.
“The National Trade Policy 2023 will enhance the country’s participation and integration in trade with neighbouring countries, regionally and internationally,” Dr Jafo told reporters. The 2023 edition aims to establish a robust framework and strategy to improve the business environment, promote economic growth, and enhance citizens’ welfare, he said, adding that some evolving trade opportunities were covered in the revised policy.
In September 2021, Tanzania ratified the African Continental Free Trade Area (AfCFTA), which was not highlighted in the 2003 policy. The government said it is also completing domestic legal procedures before endorsing the Comesa-EAC-Sadc Tripartite Free Trade Area (TFTA) agreement, which commenced on July 25, 2024, with 14 out of the 29 member states.
Development vs conservation: DRC’s dilemma over resources (The East African)
In the Democratic Republic of Congo, in the run-up to International Day for Nature Conservation, which is celebrated every July 28, debate on the prospect of oil exploitation in certain protected areas has resurfaced. More than a year after issuing invitations to tender for the exploitation of gas and oil blocks, the project has not yet attracted any major bidders, but the government is not giving up, despite pressure from nature conservationists to shelve the plans. Environment Minister Eve Bazaïba defends the bid to exploit the fossil fuels, saying those against it need to provide alternatives to Kinshasa’s quest for socioeconomic development.
The DRC, one of the world’s largest carbon sinks, has been looking to benefit from climate-related financial flows. The government calls this “climate justice”.
According to International Trade Administration, the oil and gas discoveries in the eastern DRC give it the second-largest crude oil reserves in Central and Southern Africa, after Angola. The reserves are located in the four major lakes bordering Tanzania, Burundi, Rwanda and Uganda. The DRC has proven reserves of 180 million barrels, the organisation says.
SDGs: Seychelles considers using taxation policies to drive sustainable development (Seychelles News Agency)
Seychelles is exploring how the United Nations Sustainable Development Goals (SDGs) can be achieved through strategic taxation policies and introducing a pioneering model called the SDG Taxation Framework (STF). This is being done through a five-day workshop being held at L’Escale Resort and Marina with the assistance of the United Nations Development Programme (UNDP). According to the UNDP, the STF offers diagnostic evaluations and tailored support to optimise the linkage of a country’s tax system with the SDGs.
In his opening address, the Minister for Finance, National Planning and Trade, Naadir Hassan, said the 2030 Agenda for Sustainable Development outlines a vision for a better world, built on the pillars of peace, prosperity, and environmental sustainability. “Achieving these ambitious goals requires not just political will but also innovative policy strategies. This is where taxation plays a pivotal role. Taxes are more than a source of revenue; they are a powerful tool for shaping economic and social policies, and for promoting equity and justice,” he pointed out.
He also talked about the Seychelles National Development Strategy 2024-2028, recently launched in April, which is a comprehensive plan for Seychelles’ progress, emphasising the need for resilient economic structures, environmental sustainability, and social inclusivity. “The STF will play a crucial role in supporting this strategy by providing a structured approach to mobilise resources effectively. By aligning our taxation policies with the SDGs, we can enhance our capacity to generate revenue, which in turn will support the implementation of various development initiatives detailed in our national strategy,” he added.
The ECOWAS Centre for Gender Development (ECGD) and the Regional Agency for Agriculture and Food (RAAF) held their first working session on 25 July 2024 in Lome, Togo, to explore avenues for collaboration between the two institutions. This working session, which took place at the RAAF headquarters, marks an important step towards strengthening the mainstreaming of gender in development projects, particularly agricultural development projects in West Africa.
The meeting provided an opportunity to discuss possible areas of collaboration between the two organisations with a view to maximising synergies in their respective projects. The representatives of the two delegations, including their respective directors, explored points of synergy based on the current and future projects of the ECGD and the RAAF, with particular attention to be paid to projects for the empowerment of rural women and food and nutritional security.
Drawing on their comparative advantages, the ECGD and the RAAF have agreed to pool their resources and skills with a view to strengthening the impact of their initiatives on the ground and developing joint initiatives that integrate gender and youth issues.
Civil Aviation Authority Seeks Collaboration with COMESA (COMESA)
The Zambian Civil Aviation Authority (CAA) is actively seeking collaboration with the COMESA to bolster the aviation sector through enhanced economic regulation and support to the Zambia Air Services Training Institute (ZASTI). This initiative underscores the CAA’s commitment to elevating aviation standards and ensuring sustainable growth within the sector.
This collaborative effort was highlighted during a recent meeting on July 26, 2024, when the Aviation Authority Board Chairperson, Dr. Patrick Nkhoma, led a high-level delegation to the COMESA Secretariat. The delegation met with the Director of Infrastructure and Logistics to discuss potential areas of cooperation. This strategic dialogue aims to harness COMESA’s extensive network and resources to drive improvements in Zambia’s aviation infrastructure and training capabilities.
At the close of the CEMAC-ECA Retreat, which ended on July 3, 2024 in Malabo, the main resolution is the forthcoming signing of the Memorandum of Understanding (MoU) by the highest authorities of the CEMAC Commission and the United Nations Economic Commission for Africa. The areas of cooperation that are to underpin this collaboration framework were validated. These include the harmonious development of special economic zones in the sub-region drawing on the successful experience of South-East Asia, the establishment of a financing mechanism for industrialization with no harmful impact on debt, the development of a common agricultural policy, the strengthening of quality infrastructure, and support in responding to the skills gap in the development of value chains, particularly in the timber and forestry sectors, development of digital solutions as part of industrialization policies.
The number of participants in the continental African market is growing. South Africa and Botswana have joined the Guided Trade Initiative, the experimental phase of trade under the AfCFTA. The AfCFTA Secretariat has announced a further 24 countries by the end of the year. Only Cameroon in Central Africa is trading and has carried out two operations under AfCFTA preferences. As a customs union, the 6 CEMAC countries have submitted consensual schedules of tariff concessions and schedules of specific commitments. To boost their active participation in the AfCFTA, the new collaboration will be based on the implementation of national and sub-regional strategies for the implementation of the AfCFTA within the six CEMAC countries, the revitalization of dialogue with the CEMAC private sector and support for the emergence of regional champions, the joint production of the trade monitoring report designed to disseminate trade statistics, measure intra-Community trade and evaluate the implementation of the AfCFTA.
Reform tracker tool bolsters trade facilitation (UNCTAD)
Between April 2022 and June 2024, only nine out of 95 developing and least developed countries reported early implementation of measures related to the Trade Facilitation Agreement (TFA) of the World Trade Organization (WTO). The TFA helps reduce bureaucracy and lower trade costs for businesses, particularly benefiting developing countries. It simplifies and streamlines international trade procedures, making it easier and faster to move goods across borders.
Among these front runners, Cambodia, Egypt, Eswatini, and Maldives, participate in the “Accelerate trade facilitation” programme, jointly implemented by UN Trade and Development (UNCTAD) and the World Customs Organization. The programme, funded by the United Kingdom, features an online reform tracker tool that enables better coordination and monitoring of trade facilitation reforms. Real-time insights from the reform tracker have helped user countries like Cambodia, Egypt, Eswatini, and Maldives identify their implementation progress more quickly.
“The reform tracker has been a crucial digital tool in advancing goals in a timely manner, facilitating engagement, communication, and participation of stakeholders from the public and private sectors,” says Karen Sosa Salgado, trade facilitation coordinator at the Ministry of Economic Development of Honduras. Additionally, the tool automates task distribution, resource planning, and data collection, easing the process for NTFCs to report progress on trade facilitation reforms.
‘BRICS will allow Malaysia to tap into new markets’ (New Straits Times)
Malaysia’s membership of BRICS will allow the country to tap into new markets, increase trade and investment opportunities and enhance its global standing, said experts. Universiti Teknologi Mara’s SME Development and Entrepreneurship Academy coordinator Mohamad Idham Md Razak said Malaysia would also benefit from access to resources, knowledge sharing and collaboration in the bloc. “The collaboration can help Malaysia reduce its reliance on traditional markets and mitigate the impact of global economic downturns,” he told the New Straits Times. This in turn could contribute to economic stability, he said when commenting on Malaysia’s application to join BRICS.
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia had applied to join BRICS. “The bloc’s collective economic might and diverse resource base offer substantial opportunities for Malaysian businesses. “Sectors — such as palm oil, rubber, and electronics, where Malaysia holds a competitive advantage — could benefit significantly from increased market access to BRICS nations.”
BRICS comprises Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates. It is considered the foremost geopolitical rival of the G7 bloc, with member countries accounting for around 45 per cent of the world’s population and 28 per cent of the global gross domestic product.
African economist urges viewing debt as a catalyst for growth (G20 Brasil 2024)
Kenyan economist Hannah Ryder, CEO of Development Reimagined: Africa’s current debt-to-Gross Domestic Product (GDP) ratio mirrors the 1980s, accounting for approximately 10% of the world’s total external debt. Managing this debt poses challenges for many African countries, primarily due to immediate payment obligations. Extending repayment periods is critical. Many countries require increased debt, especially infrastructure investments, to spur economic growth.
Addressing these pressing issues and proposing solutions is crucial at this time. As a representative of Development Reimagined, I advocate for potential solutions for the G20’s consideration. One proposal is establishing a debtor’s club, where members collaborate to pool resources and collateral to secure more affordable and concessional financing. Another proposed solution is to double IMF quotas for African countries. This would give them greater access to liquidity financing during external challenges. A third idea involves reforming our approach to debt sustainability, as current methods often create barriers that hinder countries from accessing affordable financing.
The primary driver behind rising debt levels in African countries is the necessity to meet sustainable development needs, such as infrastructure projects like new railways and roads and investments in education and healthcare. Many African nations have recently encountered higher interest rates and significant currency challenges, resulting in escalated expenditures.
Unexpected challenges and systemic shocks significantly affect African countries and others globally. On the African continent, our reliance on global markets to purchase our products or resources adds vulnerability, often leading to increased debt. It is crucial to enhance the flow of affordable financing to develop infrastructure that enables us to produce these goods domestically, reducing dependence on external sources.
For the first time in its history G20 Members have agreed a comprehensive stand-alone Tax Declaration, reflecting the transformational achievements of international tax cooperation to date, the importance of that cooperation and its commitment to continue to carry it forward. I commend the Brazilian G20 Presidency on this remarkable achievement and G20 members for reaching consensus on this historic text in the spirit of inclusive and effective international tax cooperation.
The Rio de Janeiro G20 Ministerial Declaration on International Tax Cooperation highlights the OECD’s work to make international tax arrangements fairer and work better, including through the “landmark achievement” of the automatic exchange of information through the Global Forum on Transparency and Exchange of Information for Tax Purposes.
This year, the key priority of the Brazilian G20 Presidency has been addressing inequality. The text of the G20 Ministerial Declaration encourages the OECD/G20 Inclusive Framework to consider working on these issues in the context of effective progressive tax policies. It also restates the G20 commitment to tax transparency and fostering dialogue on fair and progressive taxation.
How the G20 Could Help Eliminate Hunger and Extreme Poverty (Project Syndicate)
With Brazilian President Luiz Inácio Lula da Silva at the helm, the G20 is poised to become the launchpad for a landmark initiative to tackle hunger, poverty, and extreme inequality. The Global Alliance against Hunger and Poverty, which will be launched in November, aims to turn the tide in what has so far been a losing battle to achieve the United Nations Sustainable Development Goals (SDGs). The Alliance aims to mobilize the financing and leadership needed to support the achievement of the SDGs. More than 100 countries have signaled their intention to join.
As a first step, the G20 could throw its weight behind efforts to increase international development financing for reducing hunger and poverty. We estimate current financing at just $75 billion annually. Instead of endlessly debating the SDGs, the G20 could put in place reforms, recommended by its own special expert group, that would boost concessional lending by $180 billion by using the multilateral development bank system more effectively.
pdf Global Alliance against Hunger and Poverty: Foundational Documents (1.97 MB)
G20 ministers spotlight $400m Emerging Markets Transition Debt scheme (Bizcommunity)
US Treasury Secretary Janet Yellen, Brazilian Finance Minister Fernando Haddad, and South African Finance Minister Enoch Godongwana praised the progress of the Investor Leadership Network and Bellagio Consortium. Their work aims to increase institutional investments in emerging markets.
Their sentiment underscores the progress of the Emerging Markets Transition Debt (EMTD) initiative, where investors are committed to a $400m investment in the energy transition in emerging markets. This fund, supported by Investor Leadership Network members, Legal and General Investment Management, and Wiltshire Pension Fund, will target clean infrastructure, technology, and decarbonisation projects.
For many of the investors involved, the participation in this initiative would represent a new step forward aimed at helping to close the important financing gap in the decarbonisation of emerging and developing economies. The purpose of the EMTD initiative is to provide companies in emerging markets with commercial financing to make critical investments, including in low-emission infrastructure and in heavy emitting companies with a credible transition plan—helping reduce carbon emissions and supporting the global energy transition. This approach is consistent with the goals of the Partnership for Global Infrastructure and Investment (PGII), an initiative that President Biden and G7 leaders launched in 2022.
Historic cooperation between Brasil and the U.S. on climate change announced at the G20 (G20 Brasil 2024)
Brasil’s Finance Minister Fernando Haddad and U.S. Treasury Secretary Janet Yellen led the signing of a landmark agreement during the G20 Finance Track ministerial meeting in Rio de Janeiro. The Climate Partnership brings together the two major G20 economies in a joint effort to address climate challenges and promote sustainable development, marking a new chapter in bilateral cooperation.
Haddad highlighted the symbolic and practical importance of the new partnership: “The United States and Brasil were never far away. They maintain a common culture, principles, and values. Politics is not just about numbers, it is about symbols too. As stakeholders, we have decided to strengthen ties between our two countries and give visibility to this increased understanding — which, in the current context of great geopolitical tension, is an essential step towards setting an example: building a better world in a cooperative way.”
Haddad emphasized the choice to focus on climate: “We have chosen a topic that is decisive to our future to strengthen mutual relations between our countries — precisely climate-related issues. Brasil and the United States share the value that they must make increasingly consistent efforts to promote climate change action across various areas.”
China-Africa digital cooperation continues advancing, highlighted in infrastructure construction (Global Times)
China-Africa cooperation has been continuously advancing in the digital sector covering a wide range of industries from infrastructure to e-commerce, bolstered by swiftly developing technologies, African officials and business representatives told the Global Times on the sidelines of the Forum on China-Africa Digital Cooperation held by the Ministry of Industry and Information Technology on Monday.
Digital cooperation between China and South Africa has brought a lot of benefits, with many Chinese technology companies investing in South Africa and helping the country to expand in various sectors ranging from infrastructure to e-commerce, South African Ambassador to China Siyabonga Cyprian Cwele told the Global Times. For instance, more than 70 percent of the telecommunication infrastructure in South Africa is supplied by Chinese enterprises, and the country is building several cloud centers with some of them being operated by Chinese firms, according to Cwele.
Cwele said that South Africa is looking forward to deepening industrial applications between South Africa and China, as the country is trying to transform its industries to the new economy and new production lines. The fast-growing e-commerce sector as important in further exploring potential cooperation. Sales of South African products to China are growing every day thanks to e-commerce platforms, and the products are mostly specialties, he said. Chinese consumers can purchase South African flowers on Chinese e-commerce platforms, which are transported to Kunming in Southwest China’s Yunnan Province and distributed nationwide, Cwele noted.
DDG Hill: WTO key in helping tackle emerging challenges in complex geopolitical landscape (WTO)
DDG Hill highlighted the resilience of international trade in the face of polycrises over the last few years. At the end of 2023, merchandise trade in real terms was 6% above its pre-pandemic peak and up 19% compared to 2015. According to the WTO’s recent trade forecast, global goods trade is expected to gradually recover by increasing 2.6% this year after a 1.2% contraction in 2023.
Moreover, she said, the average trade weighted most-favoured nation (MFN) tariff level fell by 8.3% between 2015 and 2022, which was a tumultuous period in international trade. These figures illustrate that, despite headwinds, international trade remains the pathway for economic growth, development, and a source of economic stability.
Quick links
African Development Bank rescue of Transnet has national, regional and continental implications (The Mail & Guardian)
Why financial inclusion is the key to a thriving economy (World Economic Forum)
UN report presents public policy suggestions for the future (G20 Brasil 2024)
