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Consolidated Media Briefing on AGOA Forum and BRICS Trade Ministers Meetings (the dtic)
This press briefing is convened to present some of the major outcomes emanating from the two international engagements that we, as the dtic family, have participated in recently, namely: the 21st African Growth and Opportunity Act (AGOA) Forum in Washington, DC and the 14th BRICS+ Trade Ministers Meeting in Moscow, Russia. At the AGOA Forum, the dtic family was supported by a diverse South African delegation who engaged with the United States (US) stakeholders with a view to strengthen trade and investment relations.
Our mission was undertaken, guided by the GNU Statement of Intent that outlines key priorities for the 7th administration with a focus on achieving rapid, inclusive, and sustainable economic growth. Our key message was to reset and create partnerships with an emphasis on industrialization, building a capable state and job creation. As the dtic family, we regard the AGOA Forum as a crucial engagement reinforcing the strong economic ties between South Africa and the United States and our African continent.
We received strong bipartisan backing from the US Congress, and our colleagues in the US Administration for the reauthorisation of AGOA. The mutually beneficial economic and trade partnership is highlighted by the more than 600 US businesses operating in South Africa and with over 1.3 million jobs created in sub-Saharan Africa. Proposals presented by our delegation included the extension of AGOA for stability, improved rules of origin, and adjustments to the eligibility review process to preserve regional value chains and enhance Africa’s manufacturing capabilities. The importance of maintaining these value chains was emphasized, with calls for AGOA enhancements to support the Africa Continental Free Trade Area (AfCFTA) integration
To fully leverage both frameworks, AGOA’s provisions should be enhanced to support AfCFTA’s goals. This includes extending AGOA to provide trade stability, improving rules of origin to streamline the integration of regional value chains, and adjusting the eligibility review process to reflect AfCFTA’s progress. By aligning AGOA with AfCFTA, Africa can create a more cohesive economic structure that boosts intra-African trade, enhances manufacturing capabilities, and integrates regional economies into the global market, driving sustainable growth across the continent.
Equally, Deputy Minister Zuko Godlimpi represented South Africa at the pivotal BRICS+ Trade Minister’s Meeting. A key from the BRICS+ Meeting was to “call for a predictable, fair and equitable trade environment consistent with WTO’s rules as crucial for advancing economic prosperity”.
Both the AGOA Forum and the BRICS Trade Ministers Meeting were fundamental in advancing international trade relations and economic cooperation. These engagements underscore the importance of cooperative trade relations in shaping a more equitable and sustainable global economy. They both underscore South Africa’s commitment to pursue transparent and strategic partnerships with both our Global North and Global South partners guided by the global policy and programmatic blueprints such as the SDGs, the Paris Climate Accord, the AU’s Vision 2063, and our very own NDP. These blueprints are seen as viable vehicles for the comprehensive development and positive transformation of our country and the continent using instruments like the AfCFTA.
Aggressive scrap metal policies should be based on transparent data, not conjecture, expert says (Engineering News)
Significant alterations to existing scrap metal regulations and outright bans – albeit temporary – on the trade of certain scrap metals should not be made without access to transparent and accurate sector data, international trade consultancy XA Global Trade Advisors director Donald MacKay has said.
XA this month launched a new online platform called MyScrapMatters, which is meant to help avoid uninformed decision-making from occurring in future by acting as a centralised hub to provide comprehensive information about the scrap metal industry in South Africa.
“We would like to avoid a situation, as we had a little while ago, where we had banned the export of scrap metal, but no data was made available on what its effect was on the theft of infrastructure. “So, we’ve gathered some of that data and we’ve published it on the website, and we’ll continue to put it up as we get more. We’d like to get to a point where, when an aggressive action like a ban happens, that it is based on data, and we’d like to make that data freely available,” he tells Engineering News.
Zimbabwe, UK trade soars to $800 million; local farmers to increase horticultural exports through new scheme (NewZiimbabwe)
British Embassy development director and deputy ambassador in Harare, Joanne Abbot, has said trade between Zimbabwe and the United Kingdom (UK) experienced a significant boost from 2022 to 2023, with a 67% increase in the exchange of goods and services, reaching a total value of over $800 million. Previous reports indicate that Zimbabwe-UK trade surged by $185m to $595m in 2022, with UK investments in Zimbabwe increasing by $68m (145.5%) in 2021. This growth comes as the Southern African nation strengthen ties with UK after years of political tension, with a focus on economic diplomacy and re-engagement.
Speaking at the launch of the Monty’s and Central Association of Cooperative Union (CACU) Outgrower Scheme in Harare last Thursday, Abbot announced a new partnership aimed at increasing horticultural production for export and to enhance trade relations. “We want to keep increasing the trade rate. So, how do we keep increasing trade? “Well, I’m delighted to announce a new project under the UK’s Trade Partnerships Programme, which will support horticultural farmers and lead firms to boost production and exports of high-value crops to the UK and EU markets,” she said. The scheme is running under the theme: “Opportunities in the field, capturing opportunities from the field.”
Ethiopian Airlines defends transporting live monkeys to US as ‘complying with aviation rules’ (Addis Standard)
Ethiopian Airlines has defended its transportation of live primates to the US for laboratory use as complying with “international aviation” rules, following criticism from the animal rights group PETA. In a press briefing held yesterday, Ethiopian Airlines CEO Mesfin Tasew responded to allegations that the airline flew 250 long-tailed macaques to a US importer that supplies monkeys for laboratory experiments.
The CEO stated, “this is complying with international aviation rules; we transport such animals under legal permits from both the US and other countries, and we comply with international laws.” PETA has launched a campaign against Africa’s largest airline over the purported transport of the endangered monkeys across the Atlantic. In a statement, the group accused Ethiopian Airlines of “facilitating their use in experimental procedures.” The CEO further refuted the recent allegations by Eritrean authorities used to justify suspending the airline’s flights, labeling them “baseless” and an attempt to “smear” its reputation.
Republic of Congo: 2024 Article IV (IMF)
Economic growth momentum softened in 2023 as oil production surprised on the downside, which, together with the 2023-2024 floods, challenges in the provisioning of electricity, and weaker public investment, weighed on non-hydrocarbon growth as well. Growth is expected to recover to close to 4 percent over the medium term. Under-execution of public spending across the board, but particularly on capital expenditures and social transfers, brought the 2023 non-hydrocarbon primary deficit to 8.4 percent of non-hydrocarbon GDP, which is 3.2 percentage points lower than projected in the fourth review (CR 24/2). However, the current account weakened, a trend that is projected to continue over the medium term, as oil production stagnates while oil prices are slightly trending down. Despite external arrears remaining below the de-minimis threshold, public debt is assessed as sustainable but “in distress” due to frequent accumulation of new external arrears and lingering uncertainty about the size of domestic arrears.
Republic of Congo: Selected Issues
Burkina Faso: 2024 Article IV Consultation (IMF)
Burkina Faso continues to face significant challenges related to security and food insecurity and remains committed to addressing them. The authorities have formed the Alliance of Sahel States (AES) with Mali and Niger; while they decided to leave ECOWAS in January, they have since reaffirmed their commitment to WAEMU membership. The authorities have in May extended the political transition with elections now planned to take place in five years, and the risk of further political instability remains high. Fund relations have remained strong and collaborative.
The March 2024 food and nutrition situation analysis indicates that almost 50 million people of the region including 31.7 million living in Nigeria, representing 16% of the whole population are food insecure and need assistance to cover their basic food needs in the current lean period. Considering this, the decision-making body of the ECOWAS Regional Food Security Reserve has stood up, though, availing 4,976,75 MT of cereals on technical rotation and 2000 MT under the regional solidarity modality, to support the efforts of Nigeria in handling this situation.
Handing about 7000 Metric Tons over to the Director of the Food and Strategic Reserve Department of Nigeria, Dr. S A Haruna, on behalf of the President of the ECOWAS Commission, the ECOWAS Commissioner for Human Development and Social Affairs, Prof Fatou Sow Sarr, congratulated the Federal Government of Nigeria for the efforts already undertaken towards curbing the current difficult food situation of the vulnerable populations. “This expression of regional solidarity stands as ECOWAS contribution in support of the various efforts of the Federal Government of Nigeria. This intervention contributes to strengthen the resilience of the populations affected by the difficult food and nutrition crisis”, she says.
EADB writes off $13m loans owed by regional members (The East African)
The East African Development Bank (EADB) has written off loans amounting to $13.03 million, highlighting the economic constraints facing its member countries after Uganda defaulted on a $1.02 million loan last year .The lender disclosed in its audited financial statements that during the year (2023) it “de-recognised” the loans out of which assets available for sale amounting to $3.4 million were booked. This is a significant jump compared with $140,000 worth of loans that were written off in 2022.
According to the audited statements, Tanzania constituted the bulk of the gross loan balances owed to the lender – amounting to $72.83 million (63 percent) by December 31, 2023 – followed by Uganda ($33.03 million, 28 percent), Kenya ($7.15 million, six percent) and Rwanda ($3.39 million, three percent).The report notes that all loans disbursed to member countries were performing as of December 31, 2013, save for Uganda, which had $1.02 million of its gross loans ($33.03 million) in default or non-performing. Kenya resumed repayment of its loans after defaulting on a $5.2 million repayment in 2022.
SADC urged to boost foreign investment to accelerate industrialization (Xinhua)
The Southern African Development Community (SADC) region needs to boost foreign investments and value addition of its mineral resources to accelerate industrialization, an official said on Monday. Speaking at the seventh edition of the SADC Industrialization Week, which officially opened in the Zimbabwean capital of Harare, Zimbabwean Finance Minister Mthuli Ncube expressed concern over the region's continued reliance on primary industries to drive economic growth. "The majority of SADC countries are still dependent on primary industries and rely heavily on South Africa as the major trading partner. Hence, excluding South Africa, the majority of SADC countries are yet to be significantly industrialized," Ncube said.
According to the minister, the major challenges facing the SADC region to industrialize include the lack of affordable long-term financing, macroeconomic imbalances, and limited fiscal space to address gaps in economic enablers, coupled with a long-term decline in official development assistance flows. The SADC region is also grappling with mounting public debt that is limiting its ability to invest in core industries and infrastructure, he said, adding that rising geopolitical tensions and climate change impacts have affected all member states, resulting in reduced productivity, high levels of unemployment, and high poverty levels. Ncube said member states are making more efforts to create a favorable investment climate to boost value addition and diversify economies in pursuit of regional industrialization.
"In that regard, attracting foreign direct investment and intra-SADC investment will enhance the productive capacities of the region, promote macroeconomic convergence, integration of financial markets, as well as build capacity to participate in continental and global value chains. This will ensure the region transitions from exports of unprocessed natural resources primary products to processed high-value goods and services," he said.
Sadc industrialisation week priming region for AfCFTA (The Sunday Mail)
The Southern African Development Community (SADC) Industrialisation Week (SIW) is expected to help lay the foundation required to prime businesses from Zimbabwe and regional partners for the higher-level competition they will face in the African Continental Free Trade Area (AfCFTA).
“It is through the AfCFTA that opens the countries’ borders across the continent and during the SIW, we will also be dealing with issues that we believe would help us improve our competitiveness and be able as a bloc to participate in the markets across the continent,” said Minister Ndlovu. He said the SADC Industrialisation Strategy and Roadmap spoke about industrialisation and the bloc was making headway towards positioning itself to tap into markets presented by the AfCFTA.
“SADC and other regional communities are the building blocks of the AfCFTA, and this event provides a unique opportunity to align our regional industrial strategies with the broader objectives of the AfCFTA, fostering a cohesive approach to trade and economic integration,” he said.
Deliberations during the SIW, which began Sunday in Harare with a media awareness day, followed by an investment conference officially opened by Vice President Constantino Chiwenga yesterday, will be centred on key strategies and a roadmap for industrialising all economic sectors and driving growth in the region. President Mnangagwa is expected to officially open the SIW on Wednesday. The SIW, which ends on Friday, will run under the theme “Promoting Innovation to Unlock Opportunities for Sustainable Economic Growth and Development: Towards an Industrialised SADC”.
See also SADC reflects on industrialisation journey (Southern African News Features)
The Southern African Development Community (SADC) will hold the 44th Ordinary Summit of Heads of State and Government in Harare, Republic of Zimbabwe on 17 August 2024. The 44th SADC Summit will be held under the theme “Promoting Innovation to Unlock Opportunities for Sustained Economic Growth and Development towards an Industrialised SADC.” The theme calls for the region to collectively harness science, technology and innovation to support the modernisation and industrialisation of the SADC region.
Among some of the key issues, the 44th SADC Summit will receive the report of the Chairperson of the Organ on Politics, Defense and Security Cooperation; review progress on the implementation of the priorities of the SADC Regional Indicative Strategic Development Plan (RISDP) 2020-2030; receive update of the Food Security and the Impact of the El Nino-Induced Drought and floods in SADC Region; and progress on the implementation of the 43rd SADC Summit Theme which is “Human and Financial Capital: The Key Drivers for Sustainable Industrialisation in the SADC Region”.
Capacity building for ECOWAS private sector leaders as part of the implementation of the AfCFTA (ECOWAS)
The Economic Community of West African States (ECOWAS), in collaboration with the Federation of West African Chambers of Commerce and Industry (FCCIAO) and the ZLECAF Secretariat, is organising a capacity-building workshop for the region’s private sector leaders on the AfCFTA from 29 to 31 July 2024 in Lagos, Nigeria.
In his speech on behalf of Mrs Massandjé Toure-Litse, Commissioner for Economic Affairs and Agriculture, Mr Kolawole Sofola, ECOWAS Director of Trade, said that the Lagos workshop marks an important milestone in the collective efforts of ECOWAS and its partners to strengthen regional economic integration and unlock the immense potential of the AfCFTA. “Our objectives through this activity are clear: to raise awareness, provide comprehensive training and foster collaboration that will contribute to the success of the AfCFTA. We are determined to ensure that our private sector leaders are well prepared to lead their organisations and our economies towards greater integration and prosperity,” said Mr Kolawole Sofola.
Africa finds itself at a critical juncture, where the pursuit of economic development converges with the imperative to grapple with a rapidly changing climate. The African continent is not the primary driver of the global climate crisis, yet it bears a disproportionate burden of its consequences. Increasingly prolonged droughts, erratic rainfall patterns, soaring temperatures, and intensified extreme weather events pose existential threats to food security, water resources, and the livelihoods of countless communities. Coupled with these pressing challenges is the stark reality of insufficient climate finance, limiting the continent’s ability to effectively confront the multifaceted climate crisis.
Carbon markets present a potential opportunity for the African region to utilize its abundant natural resources to unlock economic value and accelerate sustainable industrialization and economic transformation and diversification. This conference presents an important platform for Africa to collaborate and trigger action on tapping the potential opportunities in carbon trading but, with the assurance that Africa gets the right price for trading its carbon on the global credit markets and that carbon markets are grounded on African contexts, needs and priorities, and not on foreign ontologies and epistemologies.
Carbon markets have often stirred controversy regarding their lack of transparency, credibility and scientific clarity and accuracy linked to carbon offsets and their actual contribution to the fight against climate change. Africa’s position in this market remains relatively understudied. In fact, the continent is typically viewed as a passive beneficiary of projects rather than a full-fledged participant. There is also need to explore the opportunities that technology-based solutions present. I urge the African Union Commission, our development partners and other stakeholders to be deliberate about investing in research that will yield bespoke data that informs key decisions around nature based and technology-based solutions for the continent, going forward.
African Development Bank launches 54 Country Focus Reports (AfDB)
The African Development Bank Group has launched Country Focus Reports designed to deepen policy dialogue on the macroeconomic performance and outlook of individual countries and to act as an indispensable tool for policy makers, government and development partners. The reports, in line with the theme of the 2024 African Economic Outlook report titled, “Driving Africa’s Transformation: The Reform of the Global Financial Architecture,” give deeper country-by-country specific dynamics and insights.
Growth performance and outlook vary across the 54 African countries of the report, reflecting differences in economic structure, commodity dependence, and policies. Prof. Kevin Chika Urama, Chief Economist & Vice President for Economic Governance and Knowledge Management at the African Development Bank Group said: “The reports make bold recommendations for financing structural transformation at country level through reforms of the global financial architecture to better respond to African countries’ growing development financing needs, exacerbated by recurrent global and domestic shocks.”
Africa’s Private Sector Review of the Global Digital Compact (UNECA)
A consultation session on the Global Digital Compact (GDC) was hosted virtually by the Economic Commission for Africa (ECA) in collaboration with the Africa Information and Communication Technologies Alliance (AfICTA) for Africa’s Private Sector, aimed at soliciting input and feedback on the GDC Rev.1., published on May 15, 2024.
Ms. Sorene Assefa, Digital Governance and Cybersecurity expert at the ECA, presented the origins of the Global Digital Compact within the framework of the Pact of the Future, set to be adopted at the Summit of the Future in September 2024. She highlighted ECA’s role in shaping Africa’s stance and contributions to the GDC consultation milestones, as well as the upcoming roadmap for the GDC. The discussions examined how well Rev.1 addresses the continent’s needs and priorities from a private sector perspective and discussed how the sector can effectively engage to turn Africa’s Global Digital Compact (GDC) Principles into actionable outcomes on the ground.
pdf Global Digital Compact First Revision - 15 May 2024 (209 KB)
WTO issues 2024 Annual Report (WTO)
“As it marks its 30th anniversary this year, the WTO has continued to enable members to use trade as a means to improve living standards, create better jobs and promote sustainable development. “Despite trade tensions, political uncertainty, and shocks like COVID-19, world trade has been remarkably resilient in recent years. The value of total goods and commercial services trade in 2023, at US$ 30.4 trillion, was close to record highs. “The future of trade is services, digital, green — and it must be inclusive. This Annual Report describes how, over the course of 2023 and through to our 13th Ministerial Conference in Abu Dhabi in February 2024, the WTO and its members moved forward on all these fronts, helping build the enabling environment for trade’s evolution in the years ahead.”
South Africa Seeks EU Talks on Carbon Tax It Says Hurts BRICS (Bloomberg)
South Africa will approach the European Union to discuss its planned tax on carbon-intensive imports, saying it will hurt the economies of BRICS nations. The EU’s so-called carbon border adjustment mechanism — a tax on goods such as fertilizer, cement, iron, steel, and aluminum entering the bloc — will fully kick in come 2026. While the measure is meant to encourage companies to adopt better clean-energy technology and discourage the production of such goods outside the EU, nations including South Africa argue it shifts the burden for climate action to poorer regions.
Commerce Secretary Calls For MSME Collaboration At BRICS Trade Ministers’ Meeting (KNN)
At the 14th BRICS Trade Ministers’ Meeting, held under the Russian Federation’s presidency, India’s Commerce Secretary Sunil Barthwal emphasised the critical need for collaborative efforts to support micro, small, and medium enterprises (MSMEs) across the BRICS nations. Barthwal underscored the importance of MSMEs, describing them as ‘the backbone of the overall industrial ecosystem and economic growth’ in BRICS countries. He called for ‘outcome-oriented support’ through cooperation and collective action to bolster this vital sector. The Commerce Secretary outlined several key areas for focus, including strengthening the multilateral trading system with the World Trade Organisation (WTO) at its core, enhancing the effectiveness of joint value chains, expanding interactions among MSMEs, leveraging India’s digitalisation and e-commerce successes, and fostering cooperation among Special Economic Zones. Additionally, Barthwal advocated for strengthening supply chain resilience through decentralisation and diversification. He promoted the concept of paperless trade and the digitalisation of key documents like bills of lading.
China supports Malaysia’s Brics application, saying ‘like-minded partners’ are welcome (South China Morning Post)
“The development and expansion of the Brics mechanism reflects the trend of the times, serves the interests of relevant countries, and provides a strong driving force for multipolarity in the world and greater democracy in international relations. “That is exactly why more and more emerging markets and developing countries, such as Malaysia, show a keen interest in Brics and have expressed recognition for and hope to join the group.”
Koh King Kee, president of the Centre for New Inclusive Asia, a Kuala Lumpur-based think tank, said Malaysian membership could prompt interest among other Southeast Asian countries wanting to establish a collective position on the world stage. “Many global institutions have not been effective in addressing the issues of regional conflicts, trade restrictions and climate change,” Koh said.
The International Labour Organization (ILO) Director-General, Gilbert F. Houngbo, urged G20 Labour and Employment Ministers to take decisive action to reduce inequalities, promote gender equality, and encourage diversity in the workplace. At the high-level meeting, hosted by Brazil in the city of Fortaleza on 25-26 July, the ministers agreed to a comprehensive set of measures to address global labour market challenges, ensure just transitions and promote decent work. They committed to creating quality jobs, fostering social inclusion, and eliminating hunger and poverty through coordinated social, economic, and environmental policies.
“In a world that is constantly grappling with new challenges and crises, it is becoming clearer every day that we need to accelerate our efforts towards making social justice a reality for all. This requires a set of well-coordinated social policies, including social protection and other policies to ensure social inclusion,” said Houngbo to the ministers.
Quick links
The Invisible Engine: Connectivity As A Catalyst Of South Africa’s Digital Economy (TechFinancials)
Paperless trade powers developing countries access to global supply chains (East Asia Forum)
WTO e-commerce deal commits countries to digital trade document laws (Global Trade Review)
Sustainable development must work or world faces ‘massive tragedy’, expert says (Forres Gazette)
USAID unveils a new digital policy to drive the next decade (Devex)
