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TNPA christens two newly built launch boats (Engineering News)
Transnet National Ports Authority (TNPA) has christened two new launch boats, built by the Sandock Austral Shipyards (SAS) in Durban, and destined for the Port of Cape Town. This is part of TNPA’s move to fast-track its operational efficiency.
This acquisition forms part of the TNPA Marine Fleet Renewal programme, which is aimed at improving shipping efficiencies at South African ports by increasing marine craft availability. The TNPA Marine Fleet Renewal programme is one of TNPA’s strategic deliverables in the Transnet Recovery Plan.
“The arrival of these new crafts comes at an opportune time when TNPA is executing the Transnet Recovery Plan, through the acquisition of a fit-for-purpose marine fleet to improve operational efficiencies. This also aligns with our commitment to meeting industry demands in the western region,” TNPA Cape Town acting port manager Ophelia Shabane said in her keynote address at the christening ceremony.
Artificial demand creating ‘precarious’ scrap market conditions, commentator warns (Engineering News)
South Africa‘s scrap metal sector is overinvested, international trade consultancy XA Global Trade Advisors director Donald Mackay says.
“I think we’ve got a very weird situation, as scrap metal doesn’t really behave like any other product. As demand for any product rises until the supply rises to match it, the prices would normally go up.
“What’s happened here is the demand has been artificially inflated because you have friendly finance terms out of the Industrial Development Corporation (IDC), and you’ve got discounts guaranteed on your raw materials, and if somebody doesn’t buy the goods locally, then the exporter still has to pay an export duty,” Mackay tells Engineering News.
He explains that this artificially inflated demand is compounded by the fact that no one establishes factories to produce more scrap metal, meaning the supply is determined by the state of the economy. This situation creates a precarious market.
Kenya’s debt sustainable amid growth in exports, CBK says (The East Afriican)
Kenya’s debt remains sustainable in the medium to long term supported by sustained policy actions and expected strong export growth, the Central Bank said in a quarterly economic report on Friday. In the report for the period ending in March released in Kenya’s capital Nairobi, the apex bank said that the country’s debt burden indicators have improved supported by a stronger fiscal effort. However, the overall and external ratings for risk of debt distress remain high, according to the bank. It noted that the country’s Debt Sustainability Analysis shows that Kenya is susceptible to export, exchange rate and primary balance shocks.
“In view of this, efforts aimed at boosting exports and revenues would strengthen external debt sustainability,” the Central Bank said, adding that the country’s exports to Africa have been on the rise, with the value of goods exported rising in the first quarter of 2024 to hit a new high of $1.81 million.
Nigerian businesses establish coalition to boost AfCFTA implementation (Businessday Nigeria)
Thirty-six Nigerian business associations, with support from the Center for International Private Enterprise (CIPE), have established the Trade in Services Coalition to support the implementation of the Trade in Services Protocol under the African Continental Free Trade Area (AfCFTA). A statement by the center stated that the coalition aims to bring together players in Nigeria’s trade in services industry. It will be led by a five-member coordination committee that will steer the coalition’s activities in business, communication, finance, tourism, travel, and transport.
“One of the aims of this coalition is to help businesses in Nigeria take advantage of the opportunities offered by the AfCFTA. This offers significant opportunities for trade and innovation in goods and services across Africa and globally,” Lars Benson, regional director of CIPE Africa, said. He stated that the coalition’s objectives are to support the implementation of the AfCFTA Trade in Services Protocol in Nigeria, collaborate and advocate on trade-related issues, and foster a united front for impactful change.
Digital economy: International Telecommunications Union urges Nigeria to streamline NCC, NITDA’s functions (Nairametrics)
The International Telecommunications Union (ITU) has advised the Nigerian government to streamline the regulatory roles of the Nigerian Communications Commission (NCC) and the National Information Technology Development Agency (NITDA) to address multiple regulations in the digital space. The global telecom body stated this in its report on Nigeria titled, ‘Collaborative Regulation: Accelerating Nigeria’s Digital Transformation’, which was recently launched in Abuja.
While noting that there are also some overlaps between the mandate of NITDA with NCC, the National Office for Technology Acquisition and Promotion (NOTAP) and potentially other entities, the ITU said the NITDA Amendment Bill, which is before the National Assembly should clarify the mandate and role.
“The NITDA mandate in policy-making and regulation, i.e., whether it is a standards body, a regulatory authority, or a policy-making institution, is unclear, and stakeholders currently differ on what the role should be,” it said. “While the Bill seeks to clarify the position of NITDA, it may inadvertently cause conflict between NITDA and other sector regulators including NCC given the NITDA broad mandate in relation to the ‘digital economy,’ and the lack of clarity in the distinction between the IT sector and the ICT sector. Should NCC and NITDA roles not be streamlined or clarified, it opens the possibility for forum shopping, and the duplication of roles, licences and fees levied by public agencies, and payable by ICT sector companies,” ITU added.
South African Ambassador: “Liberian Businesses Will Flourish with Full Implementation of AU’s Free Trade Protocol” (FrontPageAfrica)
Speaking in an exclusive interview with FrontPage Africa shortly after a roundtable table dialogue held on AfCFTA, Ambassador Jhazbhay disclosed that the submission of the relevant instruments by Liberia to the AU commences the process for the post-conflict nation to become active in promoting free trade within the region.
Ambassador Jhazbhay observed that Liberian entrepreneurs have been expressing concerns over the hurdles they continue to face in trading their goods or produce in and out of the country, and as such, the AfCFTA will help address many of these concerns.
He said Liberia and other African countries stand to also benefit infrastructural and economic growth and developments if the AU protocol on free trade is fully implemented by countries in the region. “The higher the trading volume between African states, the higher will be the opportunities for employment and a better quality of life. When the AfCFTA is fully implemented, Africa will be the biggest free trade area in the world. No other trading area will be bigger than Africa. So, there are huge opportunities for Liberia.”
Honourable Nqobizitha M. Ndhlovu, Minister of Industry and Commerce for the Republic of Zimbabwe on 1 August 2024 officially closed the 7th annual SADC Industrialisation Week (SIW) at Harare International Convention Centre. The 7th SIW started on 28 July and came to an end on 2 August 2024. In his closing remarks, Honourable Minister underscored the need for SADC Member States to recognise that a private sector led industrialisation drive which aims to create employment and raise the standards of living of SADC citizens remains top priority.
He urged Member States to take cognisant of the fact that to achieve sustained economic growth and development, the region needs to increase intra-trade among themselves and urged them to conclude the ratification processes for the SADC Protocol on Industry.
For her part, Ms. Angele Makombo N’tumba, SADC Deputy Executive Secretary for Regional Integration extended appreciation to the Private Sector. The Deputy Executive Secretary assured the delegates and key stakeholders that Secretariat will ensure that the “Harare Declaration” from the SIW will be presented to the next SADC Council of Ministers and the 44th Ordinary Summit of Heads of State and Government for their consideration.
See also: Special economic zones bedrock for industrial development – SADC experts (The Chronicle)
Sacu countries to launch dedicated cross-border payment system (The Namibian)
The Common Monetary Area (CMA) is set to introduce a dedicated retail payment system for cross-border transactions. CMA countries, comprising South Africa, Eswatini, Lesotho and Namibia, are also part of the Southern African Customs Union (Sacu). The cross-border payment system aims to improve investment flows among member countries.
The decision to develop a specialised payment system comes as the existing cross-border payment system, which relies on South Africa’s domestic retail payment system, has been identified as inadequate for handling the region’s growing transaction volume and complexity. According to the CMA’s Cross-border Payments Oversight Committee position paper titled ‘Processing of Cross-Border Low-Value Electronic Funds’, the new system aims to enhance the efficiency, speed and security of cross-border payments within the CMA.
The paper further notes that until March 2027, banks are advised to utilise the Southern African Development Community (SADC) real-time gross settlement (RTGS) system for low-value cross-border payments.
“To process all cross-border low-value EFTs within the CMA region through the interim arrangement of routing all low-value transactions through the SADC RTGS system,” notes the report.
EAC member states move to review fees in fresh push for intra-bloc trade (The East African)
East African Community (EAC) member States are moving towards the tail end of reviewing fees, levies and charges imposed by members on essential goods and services in the transport and agriculture sector, which have frequently sparked trade wars and choked intra-regional trade in the eight-member economic bloc. The streamlining of trading costs in Transport and agriculture sector, forms the initial phase of a mega plan by the regional authorities to harmonise some levies and fees and completely remove those which they consider ‘inflated’ and ‘discriminatory’ in seven key sectors in the region including transport, agriculture, environment, trade, finance, energy and tourism.
The plan which kicked off in 2021, targets to review additional costs impacting the trading poultry products, day-old chicks, hatching eggs, table eggs, fish and fish products, dairy, veterinary medicine products, pesticides, human and veterinary drugs in Kenya, Uganda, Rwanda, Burundi, Tanzania, South Sudan, Somalia and the Democratic Republic of Congo (DRC).Others are road user charges, passenger service charges in air transport, landing charges, parking charges and navigation charges, and ports docking fees for cargo ship.
People close to the process told The EastAfrican that a full list of levies, fees and charges in the transport and agriculture sector has been completed and it is awaiting review and validation by the Sectoral Council of Ministers on Trade, Industry, Finance and Investment, which is expected to have their next session at around November.
“So far, we have a list for the agriculture and transport sectors, a draft one for that matter, and we are waiting for the next meeting of the sectoral council of ministers responsible for trade, finance, investment and industry to sit down and look at our list and validate it. After that we will engage on the process of harmonisation, “said source who did now want to be mentioned because he is not the authorised spokesperson.
The ECOWAS Commission, in collaboration with the Federation of West African Chambers of Commerce and Industry (FEWACCI) and the FTAA Secretariat, organised a three-day capacity-building workshop for private sector leaders on the implementation of the African Continental Free Trade Area (AfCFTA), from 29 to 31 July 2024 in Lagos, Nigeria.
The workshop covered several key topics, including a general presentation on the AfCFTA, the Protocol on Trade in Goods and the Protocols on Trade in Services, Customs Administration, Investment, Digital Trade, Competition Policy and the Protocol on Women and Youth in Trade. Participants also learned about the operational tools of the AfCFTA, its regional strategy and implementation initiatives, and the role of the private sector in achieving its objectives.
At the end of their interactive and practical working sessions, the participants made a number of recommendations and called for the ratification of the AfCFTA by ECOWAS Member States that have not yet done so, and for the promotion and better financing of women and young people to increase their participation in the AfCFTA. An appeal was also made to the ECOWAS Commission to make the texts of the AfCFTA more widely known in the region, and to re-establish the ECOWAS Trade Fair. Companies and businessmen were asked to use the Pan-African Payment and Settlement System (PAPSS) to simplify payment processes.
H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Egypt’s Governor at the World Bank, commended the final statement issued from the African Caucus meeting of the World Bank and International Monetary Fund Governors, which took place from August 1 to 3, 2024, in Abuja, Nigeria. The meeting was titled “Facilitating Intra-African Trade: Catalyst for Sustainable Development in Africa”, and was held under the patronage of His Excellency President of Nigeria, President Bola Ahmed Tinubu. The session was chaired by the Nigerian Minister of Finance, Mr. Wale Edun, alongside the IMF and World Bank Governors for Nigeria. The Ministry participated through the Central Department for Multilateral Development Cooperation and Financing.
The final statement from the meeting highlighted four key areas to enhance intra-African trade: (1) strengthening the inclusive payment system in Africa and accelerating digitalization, (2) improving access to and costs of energy, (3) maximizing benefits from partnerships with Multilateral Development Banks (MDBs), and (4) reforming the global financial structure. It emphasized that the rising geopolitical tensions necessitate that Bretton Woods institutions support member countries based on principles of balance and neutrality, in line with their respective policies.
African Caucus Seeks $120bn IDA Financing to Tackle Food, Energy, Climate, Other Challenges (This Day Live)
The African Caucus Meeting of Finance Ministers and Central Bank Governors has reiterated the call of Heads of State to donor countries under the International Development Association (IDA), to boost support for borrowing member countries to $120 billion.
The package is expected to help combat persistent and emerging challenges including climate change, food insecurity, energy deficit, and fragility. The most recent replenishment of IDA’s resources, the 20th (IDA20), which was finalised in December 2021, resulting in a historic $93 billion financing package for IDA countries for the 2022-2025 fiscal years.
Speaking earlier at a panel session on IDA interventions, Minister of Budget and Economic Planning, Senator Abubakar Bagudu, said, “We are not, as a continent, growing as fast as we should” adding that “We are not being supported as much as we think we should have”. He said, “While it is possible for a country with 10 million people in Europe to find $200 billion, Nigeria with over 200 billion people can hardly find $10 billion. However, the caucus request was part of the outcomes of its 2024 African Caucus meeting which was concluded over the weekend in Abuja.
The meeting further recognised the importance of intra-African trade in unlocking production, investments, and jobs in Africa, and took cognizance that African countries continue to trade with the rest of the world more than among themselves. The meeting agreed that addressing both tariff and non-tariff barriers to intra-African trade—including fragmented payment ecosystems, poor energy access, lack of infrastructure, inconsistent regulatory frameworks, and divergent cross-border procedures— was critical to bolstering Africa’s share of global trade and stimulating sustainable and inclusive growth in the continent.
Africa’s Trade and Future: Deputy Secretary-General Urges Bold Action on Finance and Debt (United Nations Sustainable Development)
Let me start off by deeply appreciating the Chair of the Caucus, H.E. Wale Edun’s leadership and the importance of this timely meeting leveraging on African trade central to agenda 2063, but also for financing for development and the means of implementation. These imperatives – accelerated development, stronger resilience, and deeper regional cooperation – make the case for deepening intra-African trade compelling and urgent.
Bank of Ghana: Governor’s Remarks at IMF - African Caucus Meeting
The African Development Bank has underscored the urgent need for increased private sector involvement in climate finance at a key meeting of African finance ministers.
Speaking at the “Sustainable Horizons: Climate Action Strategies for Ministries of Finance in Sub-Saharan Africa” conference in Kampala organised by Coalition of Finance Ministers for Climate Action (CFMCA), Prof. Anthony Nyong, the Bank’s Director for Climate Change and Green Growth Department, stressed that the private sector financed less than 3 percent of adaptation activities in Africa between 2019 and 2022.
“We need to mobilise $213.4 billion annually from the private sector to close Africa’s climate financing gap by 2030,” Prof. Nyong stated. He identified perceived high investment risks and poor credit ratings as significant barriers to private sector participation.
Nyong joined a panel titled Unique Opportunities and Challenges for African Ministers of Finance, moderated by Uganda’s Minister of State Planning Amos Lugoloobi. Mr. Bock Kalokh, Minister of Finance, Sierra Leone; and Mr. Joseph Ng’ang’a, CEO of the Africa Climate Summit and interim CEO at the Global Energy Alliance for People and Planet.
Breaking barriers: How non-tariff measures impact women in e-commerce (UNCTAD)
UN Trade and Development’s (UNCTAD) latest publication, “The impact of non-tariff measures on women’s e-commerce businesses in developing countries”, sheds light on the unique challenges faced by women-led businesses in the digital economy and the role of non-tariff measures.
Non-tariff measures (NTMs) are any policy measures other than tariffs that can potentially have an economic effect on international trade in goods.
NTMs, although designed in a gender-blind way, disproportionately affect women-led businesses. Compliance with these measures impacts these businesses more than those led by men due to several factors. These include pre-existing gender gaps, firm size, exporters’ capacities, the economic sector in which businesses operate and the accessibility of support systems.
Evidence suggests that sectors where women are prevalent, like agriculture and food, may benefit from NTMs. These measures can enhance consumer confidence through sanitary regulations and technical barriers while boosting trade with low-cost requirements such as labeling and packaging.
Quick links
Make Domestic Resource Mobilization Work for Africa’s Structural Transformation (AfDB)
How practicable is ECOWAS single currency initiative? (Businessday Nigeria)
Productive Capacities, Economic Vulnerability and Growth Volatility in Sub-Saharan Africa (IMF)
Afreximbank’s African Quality Assurance Centre receives international accreditation from SANAS (Afreximbank)
