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South African import probes targeting China prompt call for free-trade zone (South China Morning Post)
China and South Africa should establish a free-trade zone “as soon as possible”, a Renmin University academic has suggested as Beijing has been the top target of the country’s anti-dumping actions. In an article published on Wednesday, Song Lifang, vice-president of the university’s Belt and Road Economic Research Institute, suggested that Beijing set up an economic integration organisation in the region to counter anti-dumping measures.
Despite being South Africa’s biggest trade partner, Beijing faced 44 anti-dumping investigations and 25 anti-dumping measures from its fellow Brics member between 1995 and 2021, according to Song, referring to data from the World Trade Organization and China’s Ministry of Commerce. The action accounts for 17.53 of South Africa’s anti-dumping investigations and 17.36 per cent of its anti-dumping measures in the 26-year period. In comparison, South Africa launched 23 anti-dumping investigations against India, 16 against South Korea and 13 against Taipei in the same period.
Resolving SMME challenges go beyond supportive policy, TIPS Forum finds (Engineering News)
The yearly Trade & Industry Policy Strategies (TIPS) Forum featured a discussion on the most prominent barriers to entry for small, medium-sized and microenterprises (SMMEs) as small business growth is needed for economic growth and job creation in the country.
As a first point of issue, TIPS executive director Saul Levin said the value chain of most sectors had concentration upstream, which meant the pricing of inputs was unusually high. He cited the example of China considering the entire value chain and eliminating blockages such as expensive inputs through subsidies, which helped to unlock downstream growth. “If we are looking at interventions, how do we look at pricing across the value chain? Stakeholders often advocate for more mineral beneficiation, for example, but the input costs are just too high,” Levin explained.
He added that government often intervened in markets through a myriad of compliance requirements and regulation, which was beneficial for businesses, however, balance was important with such a managed market. Levin said too much protection through duties, for example, could damage the cost structure of the economy.
“That is where industrial policy comes in,” Levin suggested, posing the question of what government should be doing alongside industries to make them more competitive over time, including mechanisms to lower input costs so that production processes could ultimately become more productive and create more jobs.
Nigeria Commits to Transformative Intra-Africa Trade Policies (Voice of Nigeria)
The Nigerian government has restated its resolve to lead collaborations that would set the stage for transformative trade policies that will resonate across the African continent and beyond. This was disclosed at the 2024 African Caucus Meeting, being held in Abuja, Nigeria. Speaking at the event, the Nigerian President, represented by the Vice president Kashim Shettima, said Africa must improve the quality of life of its people.
The governor, Central Bank of Nigeria, Mr. Olayemi Cardoso, said the monetary authorities will formulate policies that enhance trade among countries on the continent remains focal to its mandate. “We can achieve this by fostering a financial landscape that encourages collaborative research and development (R&D) to support our industries and generate economic wealth for our growing populations. Decisions on currency convertibility, cross border transactions, payment systems, cross border movements of our peoples, goods, and services, as well as financial policy, will be instrumental to determining the success of the AFCTA.”
The Country Office of the African Development Bank Group in Benin – one of Africa’s leading cotton producers – organised a workshop in Cotonou on 31 July 2024 to provide feedback about a study on private sector players bringing fresh momentum to the country’s textile industry. The meeting helped to identify opportunities and make core proposals to strengthen efforts to dynamize the cotton industry. The study revealed multiple opportunities for developing the textile value chain, ranging from production units for accessories to making, logistics, distribution and solutions for taking care of textile items.
Ms Nathalie Daouda, an expert consultant who carried out the study, commented: “The potential additional revenue for the Beninese economy is over USD 5 billion (FCFA 3,000 billion) a year. And it would not take much to make the forecasts a reality, since Benin already has the natural and human resources needed to do the work. The next step is to produce and implement a national plan. The Beninese government has provided ample evidence of its ability to tackle ambitious challenges.”
Green energy: TotalEnergies acquires Uganda power plant (The East African)
TotalEnergies has signed an agreement with Bujagali Energy Ltd as part of its plans to invest in energy projects, particularly renewable energy. The deal will see the oil company acquire a 28.3 per cent stake in the hydropower plant located in Jinja, 80km east of Kampala. With a capacity of 250 MW, the plant covers a significant part of Uganda’s electricity demands. Total will also acquire minority stakes in two projects under development in Rwanda (260 MW) and Malawi (360 MW). “This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent’s energy transition by bringing electricity to the people of African countries,” the company said in a statement released on Tuesday.
Uganda hopes that this development will keep electricity tariffs low, an issue that private sector players through the Uganda Manufacturers Association and the Private Sector Foundation Uganda have been pushing for. The cost of doing business in Uganda remains one of the highest in the East African region, in part due to the cost of electricity for manufacturers, which is currently over 10 US cents per kWh – well above President Yoweri Museveni’s recommendation of 5 US cents per unit.
Afreximbank supports Angolan partners to drive Industrialization & boost Food Security (Afreximbank)
African Export-Import Bank and Amufert SA announced that they have signed terms for a USD 1.4 Billion facility to support the establishment of a fertilizer plant in Angola. Afreximbank is arranging the required debt funding in its capacity as Mandated Lead Arranger and is also supporting the equity raise as one of the Financial Advisers through its Advisory and Capital Markets unit. Other strategic sponsors of the transaction are the OPAIA Group and Sonangol Natural Gas (Sonagas).
The fertilizer plant which will be located in Soyo, a mineral-rich part of Angola with easy access to natural gas, energy, water and a commercial port, will serve to boost industrialization, provide increased food security and position Angola as the food basket of the region.
In an ever evolving and often volatile world of trade, local fertilizer production will help mitigate shortages caused by supply chain disruptions and rising prices. It will also reduce the huge foreign exchange expenditure that Angola is currently incurring from the importation of fertilizers. Additionally, the plant is expected to create approximately 4,700 jobs, 3,500 of which will be during the construction phase and 1,200 jobs when the plant is operational.
Ethiopia to save $4.9 billion after completing debt restructuring exercise (Africanews)
Ethiopia’s State Finance Minister, Eyob Tekalign, said on Friday it expects creditors will agree to restructure $4.9 billion of debt when it completes its current restructuring exercise. The announcement comes as the country puts its long-delayed debt overhaul back on track after securing a new International Monetary Fund financing programme.
Agreed at the end of last month, the deal with the IMF will see Ethiopia receive financing of $3.4 billion for the four-year programme. It was announced hours after the country agreed to one of the fund’s key recommendations and floated its currency, the birr. Ethiopia, which is East Africa’s biggest economy, has since resumed talks to reduce its debt-repayment burden.
The finance minister says the government expects finalise a deal with each individual creditor country over the next few months. Ethiopia’s total external debt stood at over $28 billion in March this year. Private creditors hold only around 5 per cent of the debt, with over 90 per cent being the $1 billion Eurobond.
How America’s Trade Program with Africa Bolsters Security and Peace (United States Institute of Peace)
A bipartisan consensus among U.S. foreign policy leaders is pressing the United States to intensify its engagements across the continent to counter rising violence and instability that is often rooted in poor governance and unmet human needs. Yet next year, America risks losing a powerful, cost-effective tool for building U.S.-African partnership, peace and prosperity. Last week, a gathering at USIP of African and U.S. business and policy leaders sharpened and bolstered critical arguments for renewing and enhancing this vital instrument: the African Growth and Opportunity Act (AGOA).
U.S and African business and policy leaders gathered at USIP in late July as part of the AGOA Forum, an annual meeting among African and U.S. officials that aims to bolster AGOA’s impact. The USIP gathering, focused on the private sector, was co-sponsored by the Corporate Council on Africa and the U.S. Department of Commerce. USIP’s acting president, former assistant secretary of state for Africa George Moose, underscored the importance of AGOA, noting that research by USIP and others “demonstrates conclusively that economic underdevelopment is one of the most potent drivers of violent conflict across the continent.”
“We need an urgent renewal, now, ideally for a long period of time,” Nelson said. A renewal should preserve current AGOA rules that offer sufficient flexibility on sourcing of materials for products being exported to the United States, she added. Other speakers echoed the urgency of an early congressional reauthorization of AGOA.
Among the 32 African countries and wide range of economic sectors currently eligible for AGOA, some are more active than others. South Africa, Tanzania and Kenya are among countries actively participating in AGOA trade with the United States. South Africa accounted for more than 70% of the $5 billion in non-energy products sold to U.S. purchasers in 2023, primarily passenger cars and auto parts. Textiles, including clothing, account for approximately 22% of non-energy U.S. product imports from AGOA countries in 2023.
SADC has capacity to unlock Africa’s potential (Southern African News Features)
Southern Africa has the potential to quicken the pace of continental integration in Africa by using its vast mineral resources and favourable investment conditions to industrialise. Zimbabwe’s Vice President, Dr Constantino Chiwenga discussed this during his opening address to the SADC Investment Forum in Harare on 29 July.
“The SADC region holds significant investment potential. According to SADC reports, its 16 Member States contributed 27.78 percent of Africa’s GDP and attracted 55.1 percent of total Foreign Direct Investment inflows to Africa in 2021,” Dr Chiwenga said in a keynote address to government officials, business leaders, members of parliament and academia from the 16 SADC member states. The region boasts valuable minerals “offering investment opportunities in extraction, beneficiation and value addition,” he said.
“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 SADC can be a key player in the manufacturing of electrical vehicles.” He called on SADC member states to capitalise on these resources and invest in value addition and beneficiation to maximise income, particularly within the newly formed African Continental Free Trade Area (AfCFTA).
“Let us leverage our comparative advantages such as peace and stability, educated populace, natural resources, favourable climate and integrated transport infrastructure to boost productivity and seize trading opportunities under the AfCFTA,” Dr Chiwenga said.
The Southern African Development Community (SADC) hosted the Proposal Development Writeshop of the Regional Fish Genetic Improvement Programme from 22 - 26 July 2024 in Blantyre, Malawi. The main objective of the Writeshop was to support agricultural research and development and mobilise resources for the advancement of agriculture and the improvement of food security. The Writeshop brought together participants with the necessary skills and knowledge to develop fundable proposals.
SADC places great importance on indigenous fish species as a means to reduce biodiversity risks and improve productivity and production in the aquaculture sector. The development of the SADC Regional Genetic Improvement Programme (GIP) was approved by SADC Ministers responsible for Agriculture, Food Security, Fisheries, and Aquaculture in 2017. This programme aims to support sustainable regional tilapia value chains and enhance economic and socio-economic opportunities across the region.
Dr. Hastings Zidana, the Director of Fisheries at the Department of Fisheries for the Republic of Malawi, highlighted the significance of tilapia development in the region. He pointed out that current tilapia production is around 180,000 metric tons, below the target of 330,000 metric tons set for the year 2030. He applauded the continued support from SADC and partnerships that contribute expertise, equipment and skills to the National Aquaculture Development Centre in Malawi, with the aim of making it a center of excellence capable of fully executing its mandate not only for Malawi but for the SADC region as a whole.
East African Distribution Stakeholders convene in Nairobi to address sector challenges (EAC)
Stakeholders in the distribution sector from the East African region have convened in Nairobi, Kenya, to address challenges facing the sector and develop a strategic action plan to overcome barriers affecting distribution in the region. The forum marks the inaugural EAC Peer-to-Peer Learning Conference, which focuses on tackling key obstacles in the distribution sector, with particular attention on regulatory frameworks and growth strategies.
“The efficiency of this sector is crucial for ensuring that consumers have access to a wide variety of goods and services at competitive prices. Enhanced efficiency and competition in the distribution system can lead to lower prices, as distribution margins significantly affect final product prices, and help reduce price distortions,” Ms. Elizabeth Miguda, Deputy Director & Head of Regional Trade at Kenya’s State Department of Trade said. “The sector faces various issues such as fragmented regulatory obligations without a specific framework, which can foster anti-competitive practices. There is also a lack of business and management skills among entrepreneurs and insufficient digital skills to keep pace with the growing importance of online distribution channels,” she noted.
EAC One Network Area expands with the entry of the Republic of Burundi (EAC)
The East African Community (EAC) One Network Area (ONA) has expanded with the entry of the Republic of Burundi effective 1st August, 2024. In a communiqué to the public dated 29th July, 2024, the Burundi Telecommunications Regulation and Control Agency (ACRT) announced the entry into force of new tariffs for regional roaming in accordance with the directives of Decree No. 100/202 of 2nd October, 2023 on the accession of Burundi to the EAC ONA. Burundi now joins Kenya, Rwanda, South Sudan, Uganda and Tanzania as Partner States that have implemented the ONA that effectively reduces the high cost of telecommunications in the region. “These unique tariffs, competitive on a regional scale, will significantly reduce the costs of cross-border communications within the EAC,” said ACRT in its communiqué.
The framework for harmonised EAC roaming was developed and approved by the 30th Meeting of the Council of Ministers in 2014 and endorsed by the EAC Heads of State in February 2015. The framework-imposed price caps on roaming charges and called for the removal of surcharges on cross-border telecommunications traffic originating and terminating within the East African Community.
ECOWAS Governors Convene in Dakar to Strengthen Regional Monetary Integration Efforts (ECOWAS)
The West Africa Monetary Agency (WAMA) convened in Dakar, Senegal, from 26-29 July 2024, for the Forty-Fifth Joint Ordinary Meeting of the Economic and Monetary Affairs Committee and Operations and Administration Committee. This esteemed gathering was promptly followed by a distinguished meeting of Central Bank Governors from the Economic Community of West African States (ECOWAS) region, who assembled to deliberate and adopt recommendations from the Technical Committee.
During the meeting, the Governors underscored the paramount importance of Central Banks in the ECOWAS region exerting their utmost efforts to ensure the attainment of the stringent criteria for the Eco currency. They reiterated the crucial need for collaboration and harmonization among ECOWAS institutions working on convergence and microeconomic matters to achieve the timeline in the roadmap for the implementation of the Eco.
The Chairman of the ECOWAS Trade Liberalization Scheme (ETLS) Task Force that is set up to monitor the Free Movement of People and Goods across the region, His Excellency Dr. Mohamed Ibn CHAMBAS, has been following efforts made by two former Presidents of Benin, H.E. Nicephore SOGLO and H.E. Thomas Boni YAYI, to normalize free movement of persons and of goods between Benin and Niger that has been interrupted since July 2023.
During the recent mediation visit of the two former Presidents to Niamey, His Excellency General Abdourahmane, Head of State of Niger granted them a solemn audience. On the occasion, the two parties exchanged in depth, on the way out of the crisis between Benin and Niger, two nations which are united by historic, geographic and social ties. Following this high-level mediation, the Republic of Niger returned the visit to Benin with a high-level delegation, led by the Minister of the Interior, General Mohamed Toumba.
In view of the mandate given by the Summit of Heads of State and Government to the ETLS Task Force, in promoting the facilitation of the free movement of persons and goods, I would like to commend the constructive initiative of the two former Presidents of Benin, and the spirit of openness shown by the Presidents of the Republic of Benin and Niger.
The ETLS Task Force applauds the spirit of good neighborliness exhibited by both sides and encourages them to resolve any differences through dialogue and within the framework of African brotherhood. We urge them to move swiftly to reopen their common frontier to ease the suffering of people, border communities, cross-border transporters, traders, and travelers, in the spirit of Pan-African solidarity and integration.
The African Development Bank has signed a $20 million equity investment in the African Infrastructure Investment Fund 4 (AIIF4). The deal, signed on 31 July 2024, reinforces the Bank’s commitment to fostering private sector development and boosting infrastructure across the continent. The investment, approved by the Bank Group’s Board of Directors on 19 June 2024, will be financed from the Bank’s ordinary capital resources designated for private sector operations.
Africa’s infrastructure sector remains a significant investment opportunity, driven by substantial demand deficits and a scarcity of capital. With rapid urbanization and increasing local purchasing power, the continent requires between $130 and $170 billion annually in infrastructure spending. However, there’s currently a substantial yearly financing gap of $68 to $108 billion.
AIIF4, with a 13-year term and a 5-year investment period, has completed its first closing at circa $230 million, attracting international investors. To date, the Fund has raised more than the $500 million target, with the final close expected to be concluded in Q3 2024.
Africa could see 3.3m new jobs across 12 green sectors by 2030 – report (Engineering News)
An estimated 3.3-million new, direct jobs could be created across 12 green subsectors in Africa by 2030, a report published by staffing specialist company Shortlist and development agency FSD Africa, with analysis from consulting firm Boston Consulting Group (BCG) has found. The ‘Forecasting Green Jobs in Africa’ report shows that the majority of these new jobs will be created in the renewable-energy sector, particularly in the solar industry.
The study – an in-depth analysis of workforce needs within major green value chains over the next five years – indicates that the Democratic Republic of Congo (DRC), Ethiopia, Kenya, Nigeria and South Africa together will account for more than a fifth (22%) of new jobs in key sectors, such as renewable energy, e-mobility, agriculture, construction and manufacturing. “The ‘Forecasting Green Jobs in Africa’ report underscores the critical importance of a skilled workforce as an input accelerating African green industries and emphasises the need for substantial investment in skills development and workforce mobilisation.”
The African Union adopts a ten-year strategy on the Social and Solidarity Economy (International Labour Organization)
ILO experts participated in the Experts Meeting segment of the fifth ordinary session of the Specialised Technical Committee on Social Development, Labour and Employment (STC-SDLE-5) that took place on 29-31 July 2024. The main objective of the STC-SDLE-5 was to consider and adopt strategies and policy measures at the continental and regional levels to enhance social development, labour and employment. At the ministerial meeting on August 1, 2024 AU Members States’ Ministers of Labour unanimously adopted the 10-year AU strategy on the SSE and its implementation plan.
Speaking at the closing session of the Ministerial Meeting on August 2, 2024, ILO’s Regional Director for Africa Ms Fanfan Rwanyindo Kayirangwa congratulated the Ministers of Labour for recognizing potential of the SSE for enhancing decent work and social justice in the region. The strategy acknowledges, she noted, the human centred nature of this alternative business model to the world of work. She further pointed out this is the second regional strategy in the world to be adopted, following the EU social economy action plan of 2021. She underlined the timeliness of the strategy that is well-aligned with the spirit of the times that we live in. She referred to the Declaration of the G20 Labour and Employment Ministers’ Meeting which mentions the SSE four times, including a reference to the ILC Resolution concerning decent work and the social and solidarity economy.
Combating energy poverty with clean sources is a G20 priority, says Brazilian minister (G20 Brasil 2024)
“The world needs to fight energy poverty in all its forms,” said Brasil’s Minister of Mines and Energy, Alexandre Silveira, in a meeting with Damilola Onguybi, co-chair of UN-Energy. For him, the focus is on guaranteeing universal access to electricity and clean technologies for people to cook. The Minister cited Brasil’s Luz Para Todos (Light for All) program as an example of a public policy to combat energy poverty. The program uses off-grid systems (solar energy with batteries) to supply millions of homes with electricity. He also pointed out Brasil’s potential to help G20 member countries on the issue of energy transition.
According to the International Energy Agency (IEA), achieving universal access to clean cooking by 2030 would require 8 billion dollars per year in investments – three times the amount spent on the issue in the past seven years. “Lack of investment and funding from the public and private sectors is a big obstacle to achieving universal access to clean cooking technologies. Successful policies in this area validated by emerging markets and developing economies could serve as inspiration for cooperation in the Global South,” added Silveira.
Quick links
Connectivity a catalyst of SA’s digital economy (IT-Online)
A world of debt: Regional stories (UNCTAD)
Dive Into the Data: Finance and Prosperity Report 2024 (World Bank)
Now Is the Time to Help Countries Faced with Liquidity Challenges (IMF)
