Poor social development threatens South Africa’s economic sustainability, report shows (Engineering News)

Persistently high youth unemployment rates and some of the highest levels of inequality globally have led financial institution Rand Merchant Bank (RMB) to rank South Africa twenty-ninth out of 31 African countries in terms of social and human development in its ‘Where to invest in Africa 2024’ report, which was released on August 6.

Overall, South Africa ranks fourth on the continent in terms of investment attractiveness after the significantly smaller island nation economies of Seychelles and Mauritius, with Egypt coming in third. All three have booming tourism-fuelled economies.

The Seychelles and Mauritius, while presenting attractive investment environments, are two very small islands. Consequently, among nations of substantial size, Egypt ranks at the top. With a GDP of $394-billion in 2023, Egypt was the largest economy on the continent last year.

Financial literacy unlocks financial security, economic mobility – FSCA exec (Engineering News)

The fifth Money Smart Week South Africa will provide free financial education, as financial literacy unlocks economic mobility and enables people to achieve financial stability and secure their financial futures, says regulator Financial Sector Conduct Authority (FSCA) Conduct of Business Supervision divisional executive Kedibone Dikokwe​​.

“Money Smart Week provides free and accessible high-impact financial education tailored to diverse audiences with different needs. It leverages the voluntary participation of financial sector professionals and organisations in the public and private sectors to provide free financial education.

“Financial knowledge is a gateway to economic opportunity and prosperity. A lack of financial education in communities perpetuates financial insecurity and limits their economic potential. This is why the Money Smart Week campaign is a vital initiative,” she says.

Mozambique: Cabinet approves resolution on African Continental Free Trade Area (AfCFTA) Agreement (Club of Mozambique)

Mozambique’s government approved on Tuesday the resolution on Mozambique’s Tariff Offer for the Implementation of the Agreement creating the African Continental Free Trade Area (AfCFTA) and the national strategy for its implementation. The decision was taken by the cabinet, which met today in Maputo for its 24th Ordinary Session, according to a final communiqué that explains that the two resolutions will allow Mozambique to “access the AfCFTA Adjustment Fund”.

The fund “aims to assist States Parties implement the AfCFTA agreement, to limit possible negative impacts that may result from the implementation of the agreement,” the communiqué said. He added that Mozambique will “be part of the Guided Intra-African Trade Initiative for Goods”, which “aims to create real opportunities in Africa through economic operators from countries that have already submitted their tariff offers and are carrying out commercial transactions”, in this case in value chains such as ceramic tiles, batteries, vegetables, avocados, flowers, pharmaceuticals, palm oil, tea, rubber and air conditioning components.

Egypt maintains high fresh strawberry export rates to Malaysia and Singapore (FreshPlaza)

In the 2023/24 season, Egypt remained one of the leading exporters of fresh strawberries to several Southeast Asian countries, despite a slight decrease in shipments compared to the previous season, EastFruit notes. As a result, Egypt will secure second place in the overall ranking of suppliers of this berry to the markets of Malaysia and Singapore.

While Egypt led in the 2022/23 season with 1.7 thousand tons, the current season’s export of Egyptian fresh strawberries to Malaysia and Singapore will be just over 1.5 thousand tons. Nevertheless, this figure remains one of the highest in history and exceeds the average export volume in this direction over the previous five seasons by two-thirds.

Although Singapore and Malaysia are not among the world’s leading importers of fresh strawberries, they still represent a potential market of 6-7 thousand tons annually. Since the 2018/19 season, the import of garden strawberries in these countries has increased by a quarter, mainly due to Malaysia, while the volumes of purchases in Singapore have grown more slowly.

Egypt is currently mainly present in the markets of Malaysia and Singapore, while supplies to the Hong Kong market have only once exceeded 100 tons per year, and Egyptian exporters have no experience working with Thailand. In the markets of Malaysia and Singapore, Egyptian strawberries play a key role from November to March, with South Korea being Egypt’s main competitor. At the end of the 2023/24 season, South Korea surpassed Egyptian suppliers in exports to these two markets.

Here are the major GCC port concessions transforming Africa’s trade landscape (Businessday Nigeria)

The Gulf Cooperation Council (GCC) states, particularly the UAE, have been strategically investing in Africa’s port infrastructure. This effort involves securing key port concessions, developing transport nodes, and partnering with or investing in African transport and logistics companies.

The UAE, through its major players like Dubai-based DP World and Abu Dhabi-based AD Ports Group, has taken the lead in fostering closer ties with the African transport sector, acquiring controlling stakes in numerous African ports in Algeria, Egypt, Sudan, Eritrea, Somaliland, Somalia, Tanzania, Mozambique, South Africa, Angola, the Democratic Republic of Congo, Congo-Brazzaville, Rwanda, Nigeria, Guinea and Senegal.

The strategic investments by GCC states in Africa’s port infrastructure have several implications. These investments will boost economic growth in the host countries by enhancing trade capacities and creating job opportunities. By securing long-term port concessions, GCC states are enhancing their geopolitical influence in Africa, positioning themselves as key players in the continent’s economic development.

The report further highlighted that the UAE’s expansion into the African port sector is further supported by its airline companies’ outreach to the continent. This strategic move aims to capitalize on the rapid growth of intra- and extra-African trade and to secure the UAE’s control over key import-export routes, connecting Africa with the Middle East, Asia, and Europe.

Brookside, traders claim bias in issuance of Uganda dairy import permits (The East African)

The Kenya Dairy Board (KDB) is in the spotlight amid claims that it had selectively allowed milk imports from some Uganda processors but continued to lock out products by others including Brookside Limited, which has operations in both countries. Traders in parts of the Rift Valley and Western Kenya confirmed the availability of Uganda’s Lato and Dairy Top milk brands in the local market, with industry sources saying the KDB had allowed the importation of the brands while denying import permits to Brookside Limited’s Fresh Dairy brand. Traders are now calling on the two governments to review and solve the impasse to give consumers a wider choice of products.

“Consumers are asking why we no longer stock Uganda’s Fresh Dairy products (processed by Brookside Limited), but we are telling them we are not receiving any supplies from Kampala,” Simon Gathuita, a wholesaler in Bahati, Nakuru said. “The government of Kenya is stifling trade with Uganda by favouring certain Uganda processors in the importation of dairy products,” Ben Okwama, a trader in Kisumu, claimed, adding “There is no doubt that all this is intended to block a firm whose parent company is Kenyan, from exporting to Kenya.”

Malawi Customs deepens its Rules of Origin skills through advanced training workshop (WCO)

Under the framework of the EU-WCO Rules of Origin Africa Programme, funded by the European Union, the World Customs Organization, in partnership with GIZ Malawi, and the Malawi Revenue Authority (MRA), held a national advanced training workshop on rules of origin for Malawi Customs. The workshop was held in Blantyre, Malawi, from 29 July to 2 August 2024 with the objective to assist MRA in enhancing its knowledge and application of preferential rules of origin and contribute to a seamless implementation of the AfCFTA and other relevant FTAs.

During the workshop, participants gained a deeper understanding of key concepts for proper origin determination, including possible flexibilities such as cumulation, tolerance rules and the absorption principle, as well as related operational and procedural issues, such as origin certification and verification. Case studies made the concepts more tangible and relatable, and allowed the participants to detangle the spaghetti bowl of rules of origin in various free trade agreements applicable in Malawi. Participants also had the opportunity to observe the practical application and management of rules of origin through field visits to a manufacturing factory and the Mwanza border station. The insights gathered from these visits underscore the importance of ongoing training for all stakeholders, and the need to strike a balance between trade facilitation for compliant traders and customs control.

Bold Fiscal Reforms Can Unlock Cameroon’s Full Potential (World Bank)

The World Bank today launched today two flagship economic reports: the 2024 Cameroon Economic Update and the Cameroon Public Finance Review. Entitled “Fiscal Instruments for Sustainable Forestry,” the economic update analyzes recent economic developments and presents the country’s medium-term outlook. Cameroon’s economic growth decelerated to 3.3% in 2023 from 3.6% in 2022, affecting all economic sectors due to lower-than-expected public investment, rising prices, and ongoing internal conflicts. Cameroon’s real GDP growth is estimated at 4.0% in 2024 and projected to reach on average 4.5% over 2025-2027, driven by improved energy supply and stronger public investment.

The report discusses the importance of fiscal reforms to address forestry sector challenges as key to Cameroon’s sustainable growth path. Cameroon’s forestry sector, though significant, has not reached its full potential, currently contributing only 3.8% to GDP and 45,000 jobs. Despite the abundance of forest resources, Cameroon has struggled to maximize revenue from the sector. The report highlights the impact of fiscal reforms to enhance revenue from the forestry sector while promoting sustainable practices.

‘Buy SADC-made products to support industrialisation’ (Southern African News Features)

Manufacturers of goods in southern Africa should have unrestricted access to ‘local markets’ while citizens must support their growth by buying and consuming products made in the region to drive regional aspirations to industrialise. Noting that charity begins at home, Southern African Development Community (SADC) Executive Secretary, Elias Magosi called on countries in the 16-member regional organisation to open their borders to fellow SADC member states to allow greater intra-regional trade.

“Real and meaningful access to markets is the oxygen these businesses need to survive and also to achieve scale, without it, they will suffocate and perish, which is an outcome we all dread. Charity must begin at home,” Magosi said during the official opening of the 7th SADC Industrialisation Week (SIW) in the Zimbabwean capital Harare on 31 July. According to the SADC Secretariat, intra-SADC regional trade has gone up between 2019 to 2022 from US$60 million to US$83 million, reflecting the positive impact of on-going efforts to simplify trade in the region.

Sadc MPs urge stronger climate action and accountability (NewsDay)

The second meeting of the Southern Africa Regional Parliamentarians’ Forum on Climate Change ended last week in Namibia with calls for stronger climate action and accountability. The meeting brought together chairpersons and members of the Parliamentary Portfolio Committees on Environment, Climate Change, Agriculture, and Natural Resources from 12 southern African countries. The theme was “Strengthening Oversights in Climate Action Accountability and Reporting.”

A communique issued at the end of the meeting called for collaboration to bolster legislative and oversight functions. It called, also, for strengthened cooperation between Parliament and government, emphasizing the need for robust climate change legislation and the creation of Parliamentary Caucuses focused on climate change within national and regional legislatures.

Proposed ECOWAS Business Council Should Be Inclusive and Diverse - Commissioner Litse (Ghana News Agency)

The ECOWAS Commissioner for Economic Affairs and Agriculture, Mrs. Massandje Toure-Litse has charged members of the technical committee responsible for selecting members of the proposed Regional Business Council (EBC) for ECOWAS to ensure that the Council is inclusive and reflects the diverse range of businesses in the region.

In a message to the opening of a three day meeting of the committee which opened in Abuja on Monday, 5th August 2024, the Commissioner characterized the proposed Council as ‘a crucial body that will shape the economic trajectory of the region, by “prioritizing competitiveness and investment as drivers of the growth and development of the region.”

In the speech, which was delivered by the Director of Private Sector, Dr. Tony Elumelu, the Commissioner said that the African Continental Free Trade Area (AfCFTA), a free trade area of most of Africa which was signed in 2018 with headquarters in Ghana, “represents a unique chance for our businesses to access new markets, increase trade and attract foreign direct investment.”

AfCFTA must boost intra-African exports to levels experienced by other global trading blocs – Farihan Alhassan (MyJoyOnline)

Discussing the introduction of the African Continental Free Trade Area (AfCFTA) agreement at the Africa Unlocked conference in Cape Town recently, panel members said that intra-Africa trade accounted for about 16% of Africa’s exports. In contrast, levels in Asia have reached 55%, North America 49%, and countries within the EU 63%.

A significant factor delaying African progress is its failure to become economically complex by using its available products to develop others that open opportunities in new fields. The principle of economic complexity, mastered in developed countries, has resulted in countries like the USA creating and exporting products based on oil more than a century ago. Nigeria, which has the same access to oil, has not taken the step into complexity. As a result, the country is importing a product that could easily be locally duplicated. The same problem exists across many African markets where, for decades, beneficiation of raw materials has not occurred.

AfCFTA Secretariat Applauds Liberia’s Ratification of Agreement as “Remarkable,” Commits to Supporting Trade and Capacity Development Initiatives (FrontPageAfrica)

The Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, H. E. Wamkele Mene, has lauded Liberia for the ratification of the AfCFTA Agreement, which he described as “quite remarkable.” The Secretary General expressed his satisfaction with the rapid progress of Liberia’s ratification process, making it the 48th state party to the AfCFTA.

Speaking on Wednesday during a meeting with the Minister of Commerce and Industry, Hon. Amin Modad at the Ministry of Commerce and Industry, the AfCFTA Secretariat Secretary-General emphasized his enthusiasm to be in Liberia and committed to collaborate with the Government of Liberia to develop a strategy aligned with the AfCFTA framework, committing to support capacity development initiatives.

Said SG Mene: “We will send a team to work with you to ensure we have a national strategy that is aligned to the private-sector strategy and is consistent with the overall AfCFTA goals,” he said.

Addressing the issue of capacity building, he highlighted a comprehensive program that has been designed for all member countries, focusing on capacity development rather than merely monitoring compliance and obligations. He invited Liberia to join the AfCFTA’s “Guided Trade Initiative,” which facilitates trade for countries ready from a customs systems perspective. “The AfCFTA represents the last chance for Africa,” Mene stressed. “If we can’t get it right now, I cannot see another opportunity for our continent to lift ourselves.” Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, H. E. Wamkele Mene makes remarks at Wednesday’s Meeting in Monrovia

South-South trade in the marine fisheries and aquaculture sectors (UNCTAD)

Marine fisheries and aquaculture represent a key source of income, food security, nutrition, and employment in many developing countries, particularly for Least Developing countries (LDCs) and Small Island Developing States (SIDS). All South-South trade in the fisheries and aquaculture sectors has experienced large growth over the past decade, reaching double or even triple digits. In 2022, South-South trade across various fisheries sectors — marine fisheries, aquaculture, fish processing, and fishing vessels — amounted to $39 billion.

Developing countries also exhibit notable trade competitiveness in various marine species and by-products, as indicated by a positive value in the Revealed Comparative Analysis (RCA) analysis. However, these activities are currently threatened by over fishing, harmful subsidies, climate change and pollution.

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Quick links

The blueprint for Africa’s economic prosperity (TechCabal)

Strategic industrial policy for sustainable development in Africa: the case of cement manufacturing (APRI)

Digital entrepreneurship in Africa (Brookings)

The gist of the UN and AfDB report on sustainable development in Africa (Afrik 21)