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Trade Statistics for June 2024 (South African Revenue Service)
South Africa recorded a preliminary trade balance surplus of R24.2 billion in June 2024. This surplus was attributable to exports of R172.0 billion and imports of R147.7 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN).
The year-to-date (01 January to 30 June 2024) preliminary trade balance surplus of R68.4 billion was an improvement from the R14.4 billion trade balance surplus for the comparable period in 2023. On a year-on-year basis, export flows for June 2024 (R172.0 billion) were 4.2% higher compared to R165.1 billion recorded in June 2023. Import flows were lower by 12.2%, having decreased from R168.2 billion in June 2023 to R147.7 billion in the current period.
Parks Tau hopes US decides on Agoa before November election (Moneyweb)
South Africa will have discussions with both presidential candidates in the run-up to the US elections in November in its efforts to secure continued access to the African Growth and Opportunity Act (Agoa). This is according to Minister of Trade, Industry and Competition Parks Tau, who, along with his two deputy ministers, briefed the media on Tuesday on the department’s recent international trade engagements.
Tau and his deputy Andrew Whitfield were in the US from 24 to 26 July for the 21st Agoa Summit, while second deputy minister Zuko Godlimpi represented South Africa at the Brics+ meeting in Moscow.
Tau says there is general agreement that the reauthorisation of Agoa should take place “speedily”. “However, none of the parties we engaged with could give us timelines.” Tau told the media his department intends to have follow-up visits to the US in the next few months.
According to Tau, the most ideal of three possible scenarios would be that the renewal takes place before the November elections. A second scenario would be that a decision is reached during the so-called ‘lame duck’ period – between November and the inauguration of a new president. The third and least ideal scenario is that the renewal only happens sometime in 2025.
dtic aims to support local industries to increase manufacturing capacity, volumes – Whitfield (Engineering News)
The Department of Trade, Industry and Competition (dtic) will support local industries to increase their manufacturing capacity and volumes, enhance their competitiveness and identify suitable export markets for their manufactured products. This is because it is essential that South Africa’s economic growth is grounded in manufacturing-led growth and an export-oriented economy, Trade, Industry and Competition Deputy Minister Andrew Whitfield has said.
“Manufacturing is less volatile and less vulnerable to economic downturns, and will create real, sustainable and decent paying jobs for our people. South Africa must also create an export-oriented economy. A dedicated focus on manufacturing growth will also lead to export growth,” Whitfield said during the debate on the department's budget vote in the National Council of Provinces on July 31.
“The creation of an export-oriented economy can be realised through a dedicated focus on implementing measures to boost the competitiveness of local industries in global markets, streamlining export processes, lowering trade barriers, offering financial and technical assistance to exporters, and cultivating beneficial trade alliances with other nations.”
South Africa’s exports in May this year totalled more than R178-billion and the country recorded a trade surplus of over R20-billion, significantly higher than forecast and the widest trade surplus in six months.
See also: SMMEs’ contribution to economy threatened by historical legacy, lacking industrial policy (Engineering News)
Association again adjusts lemon export figures downwards (Engineering News)
Although the lemon season is drawing to a close, and some areas have finished packing, feedback from the remaining harvesting areas has necessitated a further downward adjustment of the overall export estimate, the Lemon Focus Group of industry organisation the Citrus Growers’ Association of Southern Africa (CGA) says. The overall lemon export estimate follows a pattern that has become clear as the citrus season progressed, namely that owing to drier weather causing fruit sizes to be somewhat smaller, good local juicing prices and recent severe weather events, fewer 15 kg cartons of citrus will be exported than expected.
Public and private sector entities across Southern Africa’s mining sector are intensifying cooperation to enhance the critical mineral value chain for economic growth. In July 2024, Mozambique, Zimbabwe, and Botswana signed an agreement to upgrade an existing railway line linking the three countries and to build a new line and a deep-water port in Mozambique. The transnational railway line will be crucial in transporting critical minerals – including Botswana’s copper, manganese, cobalt, and nickel, Zimbabwe’s platinum, and Mozambique’s graphite – to international markets.
In line with its commitment to advancing cooperation between Southern Africa’s mining associations and stakeholders, the Mining Industry Association of Southern Africa (MIASA) has joined the Critical Minerals Africa (CMA) Summit as a strategic partner. MIASA’s participation underscores the event’s significance in driving Africa’s critical mineral industry growth by uniting regional stakeholders on policy development, technical expertise, investment, and capacity building.
“The growing demand for clean energy technologies is increasing the demand for southern Africa’s critical minerals. Cooperation between southern Africa’s mining stakeholders is vital to unlock the region’s full critical mineral potential to drive the global energy transition and the growth of local economies,” states Rachelle Kasongo, Project Director at CMA organizer Energy Capital&Power.
Scrapping vat on cattle sales will unlock true value (The Herald)
Stakeholders in the beef industry have described Government’s decision to scrap the 15 percent value added tax (VAT) on live animal sales as a positive step towards promoting organised marketing and boosting farmers’ disposable incomes. This comes as Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube recently announced the suspension of the tax, saying Government had observed that 85 percent of live animals were sourced from smallholder farmers most of whom are ineligible for VAT registration, which means that the tax had no economic benefit to the country.
Prof Ncube said this during the presentation of the 2024 mid-term budget and economic review. He further observed that there had also been a decline in demand for livestock products attributable to low disposable incomes traceable to the El-Nino induced drought.
“In order to encourage formal trade of meat products, I propose to exempt live cattle, pigs, goats, sheep and bovine semen from VAT. “I also propose to exempt poultry meat and kapenta from VAT with effect from August 1, 2024,” added Prof Ncube.
The Gambia: Unleashing investment potential for sustainable development (UNCTAD)
The Gambia – one of the smallest African states with a population under 3 million – has undertaken significant reforms in recent years, particularly since receiving its investment policy review led by UN Trade and Development (UNCTAD) in 2017. In a new report produced at the Gambian government’s request, UN Trade and Development assesses the country’s progress towards implementing recommendations from the 2017 review. The report also proposes additional measures to further improve the investment and business environment in the West African nation.
From 2017 to 2021, foreign direct investment (FDI) flows to the Gambia shot up by approximately 14-fold, reaching an all-time high of $249 million. Currently, FDI inflows correspond to about 10% of the country’s GDP, up from just 1% in 2017.The Gambia also outperforms neighbouring, larger economies, with FDI per $1,000 of GDP nearly seven times the average of the Economic Community of West African States (ECOWAS), and four times higher than that of other African least developed countries. By the end of 2023, the Gambia’s FDI stock stood at nearly $1.4 billion. This was the largest among regional peers relative to GDP, excluding Mauritania.
UAE, Morocco finalise terms of Comprehensive Economic Partnership Agreement (Bahrain News Agency)
The United Arab Emirates and the Kingdom of Morocco have finalised the terms of a Comprehensive Economic Partnership Agreement (CEPA) that will launch a new chapter of mutually beneficial trade and investment ties between the two countries. Upon implementation, the UAE-Morocco CEPA will facilitate the free flow of goods and services by reducing or removing tariffs, eliminating unnecessary barriers to trade, improving market access for services, enhancing customs harmonisation and establishing flexible rules of origin for goods. It will also establish platforms for investment and private-sector collaboration in priority sectors such as renewable energy, tourism, infrastructure, mining, food security, transport, logistics, and ICT, WAM reported.
The two nations shared US$1.3 billion in non-oil trade in 2023, an increase of 30 percent in 2022 and 83 percent more than was recorded in 2019. The UAE is the largest Arab investor in Morocco with more than US$15 billion invested in a variety of strategic projects.
Tanzania seeks China’s partnership in boosting trade, investment (IPPMedia)
Tanzania is working to strengthen its collaboration with China to explore business opportunities, enhance partnerships, and boost trade and investment between the two nations. At the opening of the China-Tanzania Trade and Investment Forum, Prof. Kitila Mkumbo, Minister of State in the President’s Office for Planning and Investment, highlighted the growing economic ties between Tanzania and China. Held in Dar es Salaam, the event brought together high-ranking officials, business leaders, and industry experts from both countries.
The Minister emphasized the forum’s objectives: exploring business opportunities, enhancing partnerships, and accelerating trade and investment between China and Tanzania. He underscored China’s importance as a major investment partner for Tanzania. “Over the past three years, Chinese investments in Tanzania have surged to $2.46 billion across 256 projects, creating over 29,000 jobs,” he noted.
Key Chinese investments include manufacturing plants for ceramics, steel roofing sheets, and tiles, as well as industrial parks and shopping malls. Prof. Mkumbo outlined eight factors making Tanzania an attractive investment destination: a stable economy, a favorable business environment, a strategic geographic location, and substantial market access through regional economic groupings.
African countries eye broadening cooperation with China (Global Times)
Officials and representatives from Africa look forward to discussing many topics at this year’s Summit of the Forum on China-Africa Cooperation (FOCAC) and promoting trade with China, the Global Times has learned.
The 2024 Summit of FOCAC will be held in Beijing from September 4 to 6, with the theme of “Joining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future,” China’s Ministry of Foreign Affairs announced on Tuesday.
“Cooperation between Africa and China or Nigeria and China is basically on a very good platform. The BRI has opened a good gateway for business between Nigeria and China. All we need to do now is to cooperate further. But there is still a need for us to talk to each other,” Hassan Mohammed, a deputy trade commissioner of the Nigerian consulate in Shanghai, told the Global Times.
“We must first review what we have done in the past and see where we have achieved our promised cooperation. If not, why? What are the difficulties? The review and discussion will help us determine what we want to do in the next 25 years,” Khalifa A. Sy Diop, secretary of external affairs at the China-African People’s Friendship Association, told the Global Times. He is also chairman of the West African Association of African Youth Delegation in China. Diop believes that there are three important needs for Africa in the next 25 years, based on past cooperation: agroecological development, industrial development and talent training.
VP Chiwenga Rallies SADC to Boost Trade (The Herald)
SADC countries must use their regional advantages such as peace and stability, an educated populace, natural resources, favourable climate and integrated transport infrastructure to boost productivity and seize trade opportunities under the Africa Continental Free Trade Area (AfCFTA).
The call was made by Vice President Dr Constantino Chiwenga yesterday when he opened the SADC Investment Conference taking place alongside the seventh SADC Industrialisation Week and Exhibition. “The objective of this investment conference is to expedite the implementation of the SADC Industrialisation Strategy and Roadmap and identify industrialisation projects for joint implementation by the public and private sectors in SADC member states.
“The Africa Continental Free Trade Area presents an opportunity for the SADC region to position itself as a premier investment destination in Africa,” said VP Chiwenga.
Collaboration to enhance productive capacities, competitiveness and attract foreign direct investments was crucial. The regions region boasted valuable minerals, offering investment opportunities in extraction, beneficiation, and value addition.
“Recent discoveries of lithium in the Democratic Republic of Congo and Zimbabwe present opportunities for lithium beneficiation and in the long term, the manufacturing of lithium batteries, and be a key player in the manufacturing of electric vehicles. SADC member states should capitalise on these resources, and invest in value addition and beneficiation to maximise foreign currency earnings,” said VP Chiwenga.
AU endorses Akufo-Addo’s proposal for increased mobile money interoperability across Africa (Myjoyonline )
The African Union (AU) has endorsed President Nana Addo Dankwa Akufo-Addo’s proposal for mobile money interoperability across Africa. The proposal, considered a crucial step toward the continent’s economic integration, seeks to facilitate smooth economic transactions, and increase intra-Africa trade and development.
The AU Heads of State and Government made the decision after President Akufo-Addo presented two reports for consideration during the Union’s Sixth Mid-Year Coordination Meeting of Regional Economic Communities in Accra last weekend. The recommendations in the two reports, “Establishment of the African Union Financial Institutions (AUFIs)” or “Scaling up Interoperability for Economic Integration: Using Mobile Money to Buy and Sell Across Africa,” were endorsed unanimously at the meeting.
President Akufo-Addo, who also serves as the AU’s Champion on African Union Financial Institutions, underlined during the meeting that mobile money interoperability would not only advance Africa’s integration ambition, but would also improve the financial inclusion of its most disadvantaged populations.
AfCFTA Pursues Exports for Africa’s Food Security (The Herald)
The African Continental Free Trade Area (AfCFTA) is working with governments on the continent, including in Zimbabwe, to leverage agricultural export capacity to ensure domestic food security, amid a huge food import bill.
Speaking at the SADC Investment Conference in Harare yesterday, AfCFTA secretary-general, Mr Wamkele Mene said despite the continent having the capacity to feed the rest of the world, the region was presently importing nearly US$50 billion worth of basic agricultural products annually. The conference was held under the auspices of the SADC Industrialisation Week (SIW), which started on Sunday.
“Our continent imports close to US$50 billion worth of basic agricultural products per year including rice, wheat, and other goods. Yet we do know that we have, as Africa, the capacity not only to feed ourselves but to feed the rest of the world.
“That is why we are working with governments across the African continent including here in Zimbabwe to leverage agricultural export capacity to enable countries on the continent and in the sub-region to feed themselves to ensure food security in their countries - to export excess grains and foods to other parts of the continent so that we reduce reliance on others in other parts of the world to feed the African continent,” he said.
AfCFTA: SMEs in cocoa and coffee industries, and other sectors undergo training on exports (GhanaWeb)
The International Trade Centre (through its One Trade Africa Initiative, Alliances for Action (A4A) programme in Ghana, and SME Trade Academy), together with Afreximbank and the ECOWAS Commission, jointly organized a “How to Export with the AfCFTA” workshop in Accra, Ghana. Ghana is one of just over ten countries already trading under the AfCFTA as part of the pilot Guided Trade Initiative.
The workshop exposed the participants to the peculiarities and opportunities of the African market and the huge opportunities therein to access new markets within Africa, within the horizon of intra-Africa trade. During the training, the participants were sensitized on the fundamentals of intra-Africa trade and on how to add value to their goods to meet the demands of the African market and connect to businesses outside the country.
Divine Kutortse, the Program’s Manager in charge of enterprise support and trade in finance at the Ghana National AfCFTA Coordination Office, acknowledged the existence of a huge market opportunity for Ghanaian coffee and cocoa product makers in the African market and provided comprehensive information on how Ghanaian businesses can fully utilize this opportunity.
Divine Kutortse mentioned value addition and cooperation among stakeholders in the cocoa and coffee sectors as major steps for Ghanaian businesses to break into other countries. He further added that “AfCFTA seeks to remove duties and non-tariff barriers, but if traders don’t know the industry and how to search for new markets, we may not be able to realize the full benefit of the AfCFTA.”
The “How to Export with the AfCFTA” national workshops are being rolled out across the ECOWAS region and the continent more broadly, to equip small businesses to take maximum advantage of intra-African trade and market opportunities. ITC and Afreximbank have also established a complementary free online training platform which has trained over 10,000 SMEs.
To improve global trade in Africa and align with international regulatory and compliance standards, African Export-Import Bank (Afreximbank), in partnership with the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), is hosting a high-profile Compliance Forum in Dakar, Senegal, from 4 to 6 September 2024.
The Forum will focus on the Financial Action Task Force’s (FATF) requirements for identifying Ultimate Beneficial Owners (UBOs) and their far-reaching implications for trade facilitation. The FATF, an intergovernmental organisation, sets international standards to prevent money laundering, terrorist financing, and other threats to the integrity of the global financial system. One of its critical mandates is to identify and verify UBOs to ensure transparency and accountability in financial transactions.
Additionally, the Forum will explore the transformative role of Artificial Intelligence (AI) in compliance processes, address strategies for African countries to make the necessary reforms to be removed from the FATF’s grey list and showcase the latest compliance technologies.
Idrissa Diop, Compliance Director at Afreximbank, said: “We believe better compliance generates better trade for Africa. Trade compliance is a responsibility for all businesses and is especially important for those importing and exporting. It ensures goods move swiftly across borders. The weight of today’s regulatory pressures makes trade compliance controls especially important for mitigating risks.”
Over six million people in Comoros, Madagascar, and Mozambique are set to benefit from a new World Bank regional program that will enhance Eastern and Southern African countries’ financial preparedness to respond to climate shocks. The Regional Emergency Preparedness and Inclusive Recovery Program (REPAIR), approved today, will strengthen countries’ resilience against climate shocks and seek to attract $205 million in private capital to support these efforts in its first phase.
“We know from experience that mobilizing financing immediately after a disaster can be challenging. With REPAIR, governments will have anticipated and pre-positioned financing ready to disburse when the next disaster hits,” said Boutheina Guermazi, World Bank Director of Regional Integration for Africa, the Middle East, and North Africa. “The speed of response is crucial for saving lives, protecting livelihoods, and enabling an inclusive recovery.”
To improve adaptation to the impacts of climate change, the regional program relies on speed, flexibility, and sustainability. Under REPAIR, participating countries will benefit from customized financial tools designed to promptly deliver funds to countries within seven days of a climate-related disaster. The program will set up a Regional Climate Risk Fund with pre-arranged financial instruments to respond to shocks of different frequency and severity. Additionally, it aims to enhance the efficiency and readiness of local delivery systems in each country to ensure that financial assistance can quickly reach affected communities in the aftermath of a climate-related crisis.
China and 26 African countries agree to strengthen partnerships in digital field (africanews)
China and 26 African countries have agreed to strengthen partnerships and boost innovation in the digital sector. African participants at the Forum on China, Africa Digital Cooperation were hosted Monday (Jul. 29) by the Chinese ministry of Industry and Information Technology in Beijing.
Senegal’s minister of telecommunications looked forward to the changes scheduled over the next three years. “This digital cooperation between China and Africa is win-win, and will bring benefits to our countries, the African continent and China through the setting up of innovative infrastructures,” Alioune Sall said.
The parties jointly issued an action plan which includes the implementation of 10 digital transformation demonstration projects and the training of at least 1,000 professionals in the digital field. This initiative aims to strengthen partnerships in digital policy, infrastructure, cutting-edge innovation, digital transformation, security, and talent nurturing over the next three years.
Growing interest in BRICS membership signals consensus among Global South (Global Times)
In addition to Malaysia’s official application to join BRICS, Belarus and El Salvador have added more voices to a chorus of countries seeking to join the group. Experts view the countries’ increasing interest as a reflection of the strong consensus among developing nations on the significance of this cooperation mechanism, which is injecting more confidence and vitality into the development of Global South.
According to Xinhua News Agency on Sunday, Malaysia has sent a letter of application to join the BRICS organization to Russia, the BRICS rotating chair, expressing openness to participate as a member country or as a strategic partner.
“A growing number of nations seeking to join the BRICS demonstrates the effectiveness of this cooperation mechanism, which has strong appeal for developing countries,” Song Wei, a professor from the School of International Relations and Diplomacy at Beijing Foreign Studies University, told the Global Times on Wednesday.
BRICS has solidified the consensus among developing countries and has emerged as a powerful advocate for the development needs of these countries. Whether it is advancing economic collaboration or advocating fairer global governance, the BRICS has consistently championed the practical interests of developing countries, Song said. Song noted that these applicant countries, located across different continents, have experienced rapid development in recent years. In response to their growing development needs, they are looking to leverage the BRICS mechanism to unlock new opportunities for continued growth.
Brasil launches a USD 4 billion plan for AI and prepares global action (G20 Brasil 2024)
Under the slogan “AI for the Good of All”, Brasil is launching the proposal for the Brazilian Artificial Intelligence Plan and plans to invest around USD 4 billion. The agenda is one of the presidency’s priorities at the G20, striving to position the country regarding the subject, and to boost local public policies for regulating technology, projecting international action towards inclusive and sustainable development.
The document was drawn up by experts and scientists from 117 public, private, and civil society organizations in Brasil, and was launched on Tuesday, July 30, in Brasilia. Next, it will be taken to the United Nations General Assembly, in September. President Luiz Inácio Lula da Silva pledged to present the proposal to ministers of State next week, “to present the artificial intelligence policy proposal and make decisions to make it happen”. “We want artificial intelligence to create jobs in the country and qualify students,” he added.
The plan includes 54 measures that will have an immediate impact over the next four years, with implementation by various ministries such as Health, Education, Environment, Agriculture, Trade, and Investment, among others. It focuses on promoting infrastructure for AI development, dissemination, training, and professional qualification, improving public services, fostering business innovation, and enhancing regulatory and governance processes in the sector. It aligns with Brasil’s priorities, which are being discussed among the world’s largest economies, particularly in promoting inclusive development.
WTO launches new interactive tool “World Trade Statistics 2023 — Key insights and trends” (WTO)
The WTO issued on 31 July “World Trade Statistics 2023”, a new interactive tool presenting key data and trends for international merchandise and commercial services trade in 2023. The digital platform allows users to view the latest trends in world trade, in terms of both value and volume, using filters to display the data by economy, region, selected grouping, product group and services sector.
Among the interactive charts featured are “Growth in merchandisetrade value and volume”, the “Top 20 exporters in merchandise trade” and “Growthin commercial services”. The charts illustrate the evolution of trade while tablesin Excel format complement the graphics. The online tool can be accessed here.
WCO Smart Customs Project releases results of the global survey on disruptive technologies (WCO)
The WCO Smart Customs Project publishes the results of the survey launched in April 2024, aimed at gauging the global adoption of disruptive technologies among WCO Members, identify capacity-building needs, nominate National Contact Points (NCPs), and foster the exchange of experiences and best practices.
The survey’s main outcome is the identification of key technologies / application of technologies that may be adopted by Customs administrations in the near future and that have been selected as the focus of the Project: Artificial intelligence and Machine Learning (including relevant components of Big data and Data analytics), Blockchain, and Cloud computing.
The survey also shows that an IT Strategy is in place in 92% of cases among respondents, and that the top areas where Members reported capacity-building needs include technical skills, cybersecurity awareness, IT policy and governance, and strategic planning and change management.
Quick links
Video: DHL has its eyes on expansion in Africa (CNN International)
New currency for South Africa, Russia and China – how it could work (BusinessTech)
Re-globalization and Africa’s integral role in a sustainable future (Brookings)
Africa’s Green Revolution: Championing Climate-Conscious Africans For A Sustainable Future (Forbes Africa)
Retailers’ climate road map: Charting paths to decarbonized value chains (McKinsey & Company)
New report forecasts $30.1tn tokenisation market by 2034 (Trade Finance Global)
