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TotalEnergies plans to exit South African offshore gas finds (Engineering News)
TotalEnergies plans to exit its discoveries of gas-condensate off the tip of South Africa to prioritize exploration in other areas closer to Namibia, according to people familiar with the matter. The French giant braved one of the fastest ocean currents in the world to drill off South Africa’s coast, spending at least $400 million to find an estimated 1 billion barrels equivalent of light liquid hydrocarbon at the Brulpadda field in 2019. It had further success at the Luiperd well the following year, but neither discovery has progressed to development.
Uganda locks out Kenyan firms in oil transport deal (The East African)
Uganda will use Kipevu Oil Terminal 2 and the Kenya Pipeline Corporation infrastructure to ferry petroleum products from Mombasa to Kampala. According to the Uganda National Oil Corporation (Unoc), no Kenyan oil marketing company will be involved in the Unoc-Vitol Bahrain deal that target to lower pump prices below the current rates offered by dealers in Kenya.
Next week, Uganda will receive the first two vessels at the port of Mombasa; Navig8 Matines on 2nd July 2024, carrying 58,000 metric tonnes (MT) of petrol and MT Sinbad will dock on 3rd July 2024, carrying 65,000MT of diesel.
According to the Sale and Purchase Agreement (SPA) seen by The EastAfrican, Uganda chose Kenya over Tanzania due to its investment at the port and proximity. On whether Uganda will handle any consignment from foreign OMCs it said, “Unoc is mandated to only transact with Ugandan OMCs and shall therefore not be able to, say, invoice a foreign entity. We have made provision for the Ugandan OMC to process the Products payment through an affiliated entity who will be required to undergo clearance through the know your customer (KYC) document.”
CPPE Tasks FG on Protection of Local Industries Against Liberal Trade Policy (This Day Live)
The Centre for the Promotion of Private Enterprise [CPPE] has tasked the federal government on the need to arrest the deindustrialization of Nigerian economy by ensuring that local industries are protected from liberal trade policies. In a statement, the CPPE commended the federal government’s application of fiscal policy measures to boost productivity of the Nigerian pharmaceutical manufacturing industries.
The Chief Executive Officer of CPPE, Dr. Muda Yusuf, who argued in the press statement that the country’s economy could not afford to submit to a regime of complete trade liberalisation in the light of the challenges faced by domestic manufacturers. Yusuf said: “Fiscal policy measures have proven to be more impactful on real sector performance than monetary policy.
“The real sector of the economy deserves to be effectively protected and incentivised to improve production and ensure sustainability investments in that space. The Nigeria economy cannot afford to submit to a regime of complete trade liberalisation in the light of the challenges faced by domestic manufacturers.
“We need to stem the tide of deindustrialisation of the Nigerian economy, the exit of foreign direct investors and the rising mortality rate of domestic industries. We believe that stepping up fiscal policy interventions would facilitate the realisation of this objective. But we must be ready to trade off some revenue in the short term.
According to him, “the recent Executive Order removing import duties, VAT, excise duty on pharmaceutical raw materials, intermediate products, medical diagnostic equipment and machineries,” was a commendable development.
Kenya Expands Global Tea Reach with New Trade Centres (Business Day Africa)
Kenya is establishing international buying centres for its teas in various overseas markets to expand the reach of its commodity and diversify its export destinations. The East African nation has launched the China-Kenya Tea Trade Centre in Fujian province to facilitate the distribution of Kenyan tea in China. A buying centre is also being set up in the United Arab Emirates to serve Middle Eastern countries. Additionally, plans are underway to establish warehousing facilities for value-added tea in countries like Ghana and the Democratic Republic of Congo.
Last week, President William Ruto launched Chai Gold, an international trademark for trading Kenyan tea abroad. The first market to benefit from this initiative will be China, with one million bags of tea to be shipped by the end of this month. Tea is a crucial foreign exchange earner for Kenya, which is the world’s top exporter of black tea and hosts the second-largest tea auction in Mombasa. Earnings soared to Ksh180.5 billion ($1.27 billion) in the review period, a significant increase from the previous year’s Ksh138 billion.
To reduce dependence on major buyers, who currently account for 85% of total export volumes, the Tea Board of Kenya (TBK) is actively exploring new markets to diversify revenue sources for this key commodity.
Tanzania zooms ahead with new electric trains, express service (The East African)
Tanzania has taken a major leap forward in its railway modernisation efforts with the arrival of two new electric multiple-unit (EMU) trains from South Korea. The trains boast eight carriages each and will be deployed on the new standard gauge railway route connecting the commercial hub Dar es Salaam and the capital Dodoma. The service is scheduled to begin on July 25.
An express train is set to be launched on Friday between Dar and Morogoro, easing the travel time from four hours by bus to just one hour 40 minutes. The express train will leave Dar at 6 am and return at 7.10 pm. From Morogoro, the train will depart at 6.20 am and return at 7.30 pm. The trains bring to four daily SGR trips on the route.
Ethiopia and Djibouti will boost the EAC (The Observer)
The East African Community (EAC) is considering the admission of Ethiopia and Djibouti into the bloc. This comes on the heels of Somalia joining the bloc, an indicator that regional leaders view the integration expansion as one of the strengths that the region can leverage on.
The admission of Ethiopia and Djibouti could potentially unlock new opportunities for economic growth and cooperation, positioning the bloc as a more influential player on the African continent. However, the likely accession of the dual could bring new challenges and opportunities to the EAC.
Over the past few years, the EAC economy has experienced an average growth rate of over five per cent, positioning it among the fastest-growing regions in sub-Saharan Africa. Its enormous potential for economic and industrial growth can be attributed to the presence of a good business environment, and deeper trade among member states. The move to integrate the Horn of Africa into the EAC bloc will create a broader market of nearly 800 million people. This could deepen regional integration, enhance market access, and stimulate intra-regional trade, given their strategic location in the Horn of Africa.
Furthermore, their participation could bolster infrastructure development, spur investment opportunities, and promote cross-border cooperation in areas such as energy, transportation and telecommunications. Uganda stands to benefit significantly from the potential accession of Ethiopia and Djibouti to the EAC.
Africa’s exports decline by 5% as global trade nears $32 trillion (The Guardian Nigeria)
The United Nations Trade and Development (UNCTAD), yesterday, said global trade was on the way to recovery, and might hit $32 trillion before the end of 2024 as the first half of the year showed positive results. It, however, said the development in Africa remained pessimistic as the continent’s exports decreased by five per cent amidst stagnated growth in Europe.
UNCTAD in an update on trade yesterday, noted that the positive trade dynamics for the United States and developing countries, particularly large Asian developing economies, was responsible for the growth. The trade growth added approximately $250 billion to goods trade and $100 billion to services trade in the first half of 2024 compared to the second half of 2023.
The report noted that trade in developing countries and South-South trade increased by about two per cent in both imports and exports during the first quarter. In comparison, the report noted that developed countries saw flat imports and a modest per cent rise in exports. “Every year, however, South-South trade fell by five per cent when comparing the first quarter of 2023 to the first quarter of 2024. Trade growth varied significantly across sectors, with green energy and AI-related products experiencing stronger increases,” the report said.
ECOWAS mulls ‘special summit’ for regional integration (Premium Times Nigeria)
The President of the Economic Community of West African States (ECOWAS), Omar Touray, says the bloc is planning a special summit on the future of regional integration to address the subregion’s multifaceted challenges. Mr Touray announced this at the 52nd Ordinary Session of ECOWAS Mediation and Security Council (MSC) on Wednesday in Abuja. He said the summit was necessitated by the challenges of development and the rapidly changing geo-strategic and geo-political environment, which complicate regional cohesion and integration processes.
“As we commemorate the 49th anniversary of our collective regional integration project, our region is still confronted with multiple interlocking threats, including existential ones, posing significant challenges. “The Sahel faces climate and man-made crises, leading to terrorism and violent extremism, while the Gulf of Guinea faces illegal fishing, drug trafficking, and dumping of toxic waste; thus, affecting livelihoods. “Governance deficits and marginalization have strained social contracts, engendering bitter political rivalries, resource competition, organised crime and violence.
tralac on the heel of Africa’s Agenda 2063 with new guide (Namibia Economiict)
tralac (Trade Law Centre), a public benefit organisation based in South Africa has developed a technical guide to Africa’s transformation through the African Continental Free Trade Area, or AfCFTA for short. Update in May this year, the guide focuses on the architecture of the AfCFTA agreement and what it covers. This edition includes an update on the Guided Trade Initiative as well as tariff negotiations for trade in goods, rules of origin, trade in services, Phase II and Phase III negotiations, dispute settlement, institutions, committees and other AfCFTA initiatives.
It also covers AfCFTA as a framework for Africa’s industrialisation, focussing on areas such as the expertise required and capacity generation in trade governance across Africa.
“For the AfCFTA to be a facilitator of trade-driven industrialisation it has to meaningfully impact tariff and non-tariff barriers and so improve intra-African market access. Logistics and border challenges must also be resolved.” Adding to that statement, it advocates for value-chain driven industrialisation, where the production chain stretches across several countries, permitting specialisation and the development of country and regional competencies and competitiveness in designated industrial sectors.
Africa is set to benefit from improved customs technologies to boost intra-African trade. The African Development Bank and the Korea Customs Service (KCS) have signed an Aide Memoire on Facilitation of Customs Reforms and Modernisation that will tap Korean customs expertise and systems to enhance Africa’s trade processes, potentially increasing intra-continental commerce and supporting regional integration efforts.
Through the Aide Memoire, the collaboration aims to promote trade facilitation among Bank Group Regional Member Countries by supporting customs reforms and modernisation, focusing on transparent operations and enhanced border management to increase revenues.
Key areas of cooperation include capacity-building and technical assistance for Customs modernisation, national and regional seminars on electronic clearance systems, site visits for African Customs officers to experience KCS’s digitalisation efforts, technical support for establishing electronic clearance and origin management systems in Africa, collaboration on trade and transport facilitation along African corridors and border posts, dissemination of best practices on trade facilitation, and joint studies on Customs modernisation policies for Regional Economic Communities in Africa.
Commonwealth, UNCTAD and Partners Advocates for Strategic Trade Reforms to Empower Least Developed Countries (The Commonwealth)
Last week, the Commonwealth Secretariat, The United Nations Conference on Trade and Development (UNCTAD), and the Permanent Mission of Nepal in Geneva co-organised a session at the World Trade Organisation’s (WTO) 9th Global Review of the ‘Aid for Trade’ initiative.
The event focused on strategic approaches in three areas. First was addressing LDCs’ unique and complex vulnerabilities through targeted support that helps position trade as a driver of growth, structural transformation and sustainable development in LDCs. Second was enhancing productive capacities in LDCs to provide a foundation to diversify their economies and exports, ensuring they are better positioned to deal with potential trade-related challenges before and after graduation. The third focus was on effective support for LDCs transitioning out of the LDC category, ensuring a smooth and sustainable graduation. This includes granting flexibility, transition periods, and assistance in capacity-building and institutional arrangements to maintain development momentum.
Mr Paul Akiwumi, Director, Division for Africa, LDCs and Special Programmes at UNCTAD noted that the old commodity-dependent development model has not worked for LDCs and called for more targeted policies and strategies to build diversified productive capacity, including through gap assessments.
Revisit rulebook on food and agriculture, DG Okonjo-Iweala urges workshop participants (WTO)
WTO Director-General Ngozi Okonjo-Iweala on 2 July urged members to revisit the organization’s rulebook on food and agriculture. She made her remarks at a two-day workshop for members and external experts dedicated to examining contemporary challenges in the agriculture sector in the context of WTO negotiations.
“There is an urgent need to ensure that trade in food and agriculture contributes to ensuring everyone can access sufficient, safe, and nutritious food at all times,” the DG said in her opening remarks to participants. While the Agreement on Agriculture has underpinned five-fold growth in agricultural trade since the start of the century, the challenges facing the sector have evolved significantly, she said.
Agricultural markets remain highly distorted, while UN figures indicate that around 9 per cent of the world's population faced hunger in 2022 — with climate change among the factors that are exacerbating existing challenges. Policy-makers need to rethink how existing policy frameworks affect the sustainable management of land and water resources, the DG said.
Aid for Trade session addresses Comoros’ and Timor-Leste’s post-accession strategies (WTO)
At the 9th Global Review of Aid for Trade on 26 June, representatives from Comoros and Timor-Leste outlined strategies for the implementation of their WTO accession commitments and preparation for WTO membership. The two least developed countries (LDCs) also underlined the need for technical assistance and capacity building support from WTO members and development partners to achieve their objectives.
Steering Committee of the WTO Fish Fund moves towards making the Fund operational (WTO)
At its second meeting held on 3 July, the Steering Committee of the WTO Fish Fund endorsed several framework documents that will govern the Fund’s operations once the Agreement on Fisheries Subsidies enters into force. The Fund was created to support developing and least-developed country members’ (LDCs) implementation of the Agreement on Fisheries Subsidies.
The Steering Committee also endorsed the Fish Fund Secretariat’s work for the rest of the year, including drafting a strategy for the Fund, preparing for the initial “Call for Proposals” when the Agreement enters into force, and drafting a communications, outreach and engagement plan. The Steering Committee, the governing body of the Fish Fund, includes eight WTO members that donated to the Fund and eight developing and least-developed country members that have deposited their instruments of ratification and will benefit from the Fund.
Quick links
AGOA and AfCFTA: Unlocking Business Potential Between United States and (Business Post Nigeria)
Africa’s Trade Potential: Navigating Opportunities Amidst Global Transformations (Polity.org.za)
Will the Emerging Global South Institutions Challenge Western Hegemony? A Case Study of BRICS (Modern Diplomacy)
Boosting local food systems from emergency aid to sustainable development (Devex)
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tralac Daily News
IATA urges South Africa to prioritise country’s aviation sector (Engineering News)
The global representative body for the airline industry, the International Air Transport Association (IATA), on Tuesday called on the new South African Government to continue to prioritise aviation sector development in the country, as a key impetus for economic growth and job creation. (With no party having won a majority in the recent elections, the country now had a new, broad-based, ruling coalition, called the Government of National Unity.) IATA was currently holding its Wings of Change Focus Africa Conference, in Johannesburg.
“South Africa’s aviation industry is poised for significant growth over the next 20 years, adding 345-million additional passenger journeys by 2043,” highlighted IATA Regional VP Africa and the Middle East Kamil Alawadhi. “With aviation generating $6 in economic activity for every $1 spent, this expansion will inject billions into South Africa’s [gross domestic product] and create thousands of new jobs. It is important for the new Government to keep this as a strategic focus. The economic and social benefits of aviation will be maximised with a sharp policy focus on keeping costs low, providing sufficient capacity to grow, monitoring the cost-effectiveness of regulations, and achieving net-zero carbon emissions by 2050.”
New trade and industry leadership expected to use industrial policy levers to support key sectors (Engineering News)
With industrial policy back in fashion in many economies, business and policy specialists expect new Trade, Industry and Competition Minister Parks Tau to prioritise measures to support key sectors, including those aligned to the emerging green economy. The former Department of Cooperative Governance and Traditional Affairs Deputy Minister and City of Johannesburg Executive Mayor has been appointed to the position in the government of national unity (GNU) together with two deputies, Zuko Godlimpi, also of the African National Congress, and Andrew Whitfield, of the Democratic Alliance.
In welcoming the appointments, Business Unity South Africa (Busa) CEO designate Khulekani Mathe told Engineering News that he expected dtic’s new political leaders to prioritise the enhancement of the country’s industrial policy to support key sectors, while also promoting innovation and ensuring sustainable industrial development. “Given the ongoing challenges posed by economic downturns and global disruptions, Busa emphasises the need for policies that support economic recovery and growth. “This includes measures to attract investment, boost industrial productivity, and enhance trade competitiveness,” Mathe said.
Shaky economy could hamper Mnangagwa’s Brics ambition (The Zimbabwe)
PRESIDENT Emmerson Mnangagwa says Zimbabwe is now ready to join the Brics grouping as it has a stable currency, but economic analysts argue that the country is yet to meet the basic fundamentals of a stable economy. Brics — short for Brazil, Russia, Inda, China and South Africa — has evolved from a group promoting investments into a geopolitical bloc positioning itself as a counterweight to North America and the European Union. It now also includes Iran, Egypt, Ethiopia and the United Arab Emirates.
Zimbabwe, which has been isolated due to a poor human rights record, has been using every opportunity to re-engage, and is eyeing admission to the Brics bloc. Mnangagwa has been pinning hopes of admission to the Brics grouping on the Zimbabwe Gold currency, introduced in April by the Reserve Bank of Zimbabwe (RBZ) — replacing the Zimbabwe dollar which was continually shedding value against the United States dollar.
“When we apply, the Brics will interrogate our economy and the basis of the approach of which we are applying. We are suffering from the fluctuations of an incurred currency. So one time, you know, the inflation could fly in our face. We decided that we need a currency, a solid currency based on our gold reserves. And, that is what we have done. So our currency is now called ZIG, which is Zimbabwe Gold.” While Mnangagwa said Zimbabwe is ready, economic analyst Professor Gift Mugano said Zimbabwe is yet to meet the fundamentals of a stable economy, with the new currency not yet fully available on the market.
Zim trade deficit falls 24pc (The Herald)
Zimbabwe’s trade deficit decreased by 23,8 percent in May this year to US$151,1 million, according to the latest report from the Zimbabwe National Statistics Agency (ZimStat). The statistics agency said in May, exports amounted to US$583 million while imports totalled US$734,1 million.
The country now depends on imports for some products it used to produce following the nearly two-decade economic crisis, since the turn of the century, which caused a plunge in production across sectors, hence the trade deficit.
Prices of Kenya’s imported second-hand cars fall as shilling rallies against dollar (The East African)
The Kenyan prices of some popular brands of imported second-hand cars have dropped by double-digits between January and this month, driven by the shilling’s rally against the dollar. Dealers said that prices have been easing since the start of the year, offering relief to price-sensitive Kenyans who opt for the used units.
A 2017 Landcruiser Prado TX for instance now goes for Ksh4.5 million ($0.036 million) compared to Ksh5.3 million ($0.0424m) at the start of the year, or a 17.7 percent drop, while a used 2017 Subaru Outback is now retailing at Ksh2.5 million ($ 0.02m), down from Ksh3 million ($0.024m) in January-a 16.6 percent drop. The price drops offer relief to Kenyans who had been forced to shelve purchases of second-hand cars last year when prices skyrocketed amid the shilling’s woes against the dollar.
The dollar is the currency used in Kenya to pay for imported goods, including motor vehicles, fuel, and furniture and a strengthening of the shilling has the impact of lowering the cost of the imports.
Prices of cooking oil, mobile phones, diapers to go up as EAC gazettes new taxes (Citizen Digital)
The cost of basic goods like cooking oil, diapers and electronics like phones and television sets is about to rise after the East African Community approved measures on import duty rates in the region. The East African Community (EAC) has published a gazette notice itemizing the approved measures on import duty rates in the EAC External Tariff (EAC CET).
Kenya has imposed a 10% import duty on crude palm oil which means the price of cooking fat and margarine for the next year. Other refined oils which have been slapped with higher taxes are; Refined soybean oil, RDB Palm Olein, Sunflower oil, and refined corn oil which Kenya has imposed a duty rate of 25% for one year.
The timing of the notice comes at a dicey time when the Kenyan government which dropped its controversial Finance Bill after intense protests led by the youth.
pdf EAC Gazette No. 18 of 30th June 2024 (Regarding Customs matters) (1.91 MB)
Kenya Reduces Importation Rates for Mitumba From Ksh51 to Ksh26 Under New EAC Directive (Kenyans.co.ke)
Kenya will have the most favourable terms to import worn clothes popularly known as Mitumba among all East African Community (EAC) countries. Initially, the importation of Mitumba was subjected to a CET rate of 35 per cent or USD0.4/Kg or whichever is higher. “Kenya to stay application of the EAC CET rate and apply a duty rate of 35 per cent or USD0.20/Kg whichever is higher for one year,” the Gazette explained Kenya’s new directive on worn-out clothes.
According to EAC, the new rates will be applicable for the 2024/25 financial year before being subjected to another revision. Other EAC countries have placed uniform CET rates for traders wanting to venture in the Mitumba industry. “Uganda, Burundi and Tanzania to stay application of the EAC CET rate of 35% or USD0.40 / Kg whichever is higher and apply a duty rate of 35 per cent for one year,” the Gazette notice read in part.
Kenya Agoa exports dip denies traders dollar boon (Nation)
Kenya’s export earnings to the US under the Africa Growth and Opportunity Act (Agoa) dipped a marginal 1.65 per cent last year, new data shows, hit by an overall drop in shipments of apparel products and denying traders gains during a period when the shilling had substantially weakened against the dollar.
The Office of the United States Trade Representative (USTR) in a newly published report said that Kenya exported products worth Sh65.77 billion ($510million) to the US under the Agoa scheme in 2023, bucking a growth trend from the previous year when Washington took up goods worth Sh66.88bllion ($517million) from the East Africa nation.
“Kenya, Madagascar, and Lesotho were significant suppliers of apparel under Agoa in 2023,” USTR said in its report, noting that overall US apparel imports from all Agoa-eligible countries, however, fell to $1.1 billion (Sh141.88 billion) in 2023 from $1.4 billion (Sh180.57billion) in 2021. The dip in Agoa fortunes means that Kenyans missed a dollar windfall through 2023 when the shilling plummeted to record levels against the greenback.
AGOA: Nigeria’s goods import soar to $47.5b (The Guardian Nigeria)
Nigeria has emerged the largest source of imports under the African Growth and Opportunity Act (AGOA), with a total of $3.8 billion in the first half of 2024, as the major supplier of crude oil under the Act. This is an improvement from $3.6 billion in 2023 and up from $1.2 billion in 2021. This was contained in the 2024 biennial report on the implementation of the AGOA, released by the office of the United States Trade Representative yesterday.
According to the report, total two-way goods trade with sub-Saharan Africa totaled $47.5 billion in 2023, a 6.2 per cent increase from $44.7 billion in 2021. U.S. goods exports were $18.2 billion in 2023, up 10.4 per cent from $16.5 billion in 2021. U.S. goods imports were $29.3 billion in 2023, up 3.8 per cent from $28.2 billion in 2021.
U.S. goods imports under AGOA (including GSP) totaled $9.7 billion in 2023, up from $6.8 billion in 2021 but down from $10.2 billion in 2022. This upward trend in imports the report said, was mainly driven by increased imports of crude oil. South Africa was the second-largest AGOA exporter in 2023, behind Nigeria with $3.6 billion in 2023, followed by Kenya ($510 million), Ghana ($340 million), Madagascar ($339 million) and Angola ($260 million).
While Nigeria is one of the eligible countries under AGOA, the report raised concerns over the country’s continuous import prohibitions to protect certain sectors of the economy, despite these efforts being widely viewed as ineffective and contributing to food insecurity, corruption, and exacerbating poverty.
pdf 2024 Biennial Report on Implementation of the African Growth and Opportunity Act (USTR) (985 KB)
Northern Corridor states push for shorter Tanzania freights route (The East African)
Countries backing the Northern Corridor—a regional road connectivity project—are seeking to woo Tanzania to allow cargo headed to Burundi, Rwanda, and the Democratic Republic of Congo (DRC) to pass through its borders to shorten transit time and ease costs in a bid to boost the attractiveness of the Mombasa port. The Northern Corridor, a network of 1,700 km long interconnected highways, starts from the port of Mombasa and serves Kenya, Uganda, Rwanda, Burundi, and Eastern DRC.
A meeting of ministers of transport from the six-member countries of the Northern Corridor last week ordered the secretariat Northern Corridor Transit and Coordination Authority (NCTTCA) to initiate talks with Tanzania over the proposal. If successful, Northern Corridor trucks that have traditionally had to take the longer route from Mombasa through Uganda to Rwanda, Burundi, and the Democratic Republic of Congo (DRC) will take the shorter way through Tanzania, cutting about 400 kilometres of the travel distance.
The council of ministers, chaired by Uganda’s Minister of Works and Transport Katumba Wamala, said using the route, which passes through Taveta into Holili in Tanzania, will “not only reduce costs of transit transport but also increase Mombasa Port throughput.”
The route is currently not being used by transporters because Tanzania, which is also seeking to boost the throughput at the Dar es Salaam port and the Central Corridor, has not geofenced it, preventing its use by cargo trucks destined for other countries. The East African Community (EAC) customs union requires that trucks ferrying imported commodities be tracked using the Regional Electronic Cargo Tracking System Currently, truckers that opt for the short Taveta-Holili route have to deposit a “bond” for the cargo at the Mombasa port, submit it at the border, wait for its cancellation, then institute another one for Tanzania, a process that normally takes at least three days.
Report on the implementation of the Investment Policy Review of The Gambia (UNCTAD)
The Investment Policy Review (IPR) of the Gambia was published in 2017. It provided an analysis of the investment strategic, legal and institutional framework and recommendations to enhance it. It also developed a strategy to promote foreign direct investment (FDI) in priority sectors.
The IPR provides concrete and tailored recommendations with the aim of improving an economy’s or region’s investment climate, in line with the Sustainable Development Goals (SDG) and national development goals. Reports to assess the implementation of the recommendations are produced a few years after the publication of the IPR at the request of the beneficiary country. They aim to identify additional technical assistance needs and suggest recommendations to assist countries in strengthening further their investment framework and business environment.
In 2023, the Government of the Gambia requested UNCTAD to assess the implementation of the IPR recommendations and chart a way forward to further improve the investment and business environment.
Trade Policy Review: Mozambique (WTO)
During 2017-23, Mozambique continued to depend heavily on imported food, agricultural inputs, and refined petroleum products, whereas its export basket was dominated by coal, aluminium, and natural gas. Mozambique remained a net importer of services throughout that period. Aggregate two-way trade flows ranged between 92.8% and 137.7% of GDP, partly on account of Mozambique’s position as a regional gateway to international markets. Mozambique also continued to attract significant foreign direct investment (FDI) inflows, which were mostly driven by large extractive industry projects (natural gas, coal, and minerals).
During the review period, Mozambique revised its tariff and customs clearance legislation and continued to develop its Electronic Single Window (JUE) for foreign trade. The authorities also eliminated the compulsory use of customs brokers and discontinued preshipment inspection, albeit without formally revoking the legal basis for the latter. Notwithstanding the significant improvements made to import, export, and transit formalities, further trade facilitation efforts could focus on increasing transparency and making all trade-related registration, licensing, and authorization procedures executable electronically.
Enact Enforceable Local Content Laws to Build Capacity (MarketForces Africa)
Dr Ernest Azudialu-Obiejesi, Chairman of Nestoil Limited has called for the enactment of Local Content Laws that are enforceable to build and protect local capacity. Azudialu-Obiejesi made the call on Monday during a panel session on “Exportation of Local Capacity: Maximising Regional Opportunities’’ at the ongoing Nigerian oil and Gas conference in Abuja.
“The Nigeria Content Development and Management Board (NCDMB) has done quite well but we still have setbacks due to how these laws are enforced,” he said. Azudialu-Obiejesi said that effective implementation of laws was necessary to grow local capacity, while projects should be awarded to companies with proven capacity. He called for a change in the implementation of the Nigerian content policy that allowed contracts to be awarded to companies with lowest bid in spite of apparent lack of capacity to deliver the jobs.
According to him, if a country has enough capacity to make it a net exporter to African countries, it is paramount to address the factors limiting growth in country. “We can export the capacity in the oil and gas industry to other countries but exporting them means that we need to ensure that we will have those companies that are in Nigeria already developed. “The countries are expected to entrench all those capacities in terms of human resources, experiences, capital and equipment for export,’’ he said.
Stakeholders Join Forces to advance Ethiopia’s AfCFTA Implementation Strategy (UNECA)
The Ethiopian Ministry of Trade and Regional Integration (MoTRI) in collaboration with the Policy Studies Institute (PSI) with support from the United Nations Economic Commission for Africa (ECA) organized a National Forum for the development of National African Continental Free Trade Area (AfCFTA) Implementation Strategy. The event gathered over 70 participants from various sectors, including private industries, government representatives, academia, youth, women, and developmental partners.
In his opening remarks, Gebremeskel Chala, Minister of MoTRI reiterated the government’s commitment to fostering open minds for ideas and open markets for trade. He also expressed appreciation for PSI’s involvement and ECA’s assistance in developing the Ethiopia National AfCFTA Implementation Strategy. The Minister highlighted that the forum, with its wide-ranging stakeholder representation, is a crucial step towards establishing a successful National AfCFTA implementation Strategy.
Representing the ECA, Stephen Karingi, Director of Regional Integration and Trade Division (RITD) expressed appreciation to Global Affairs Canada (GAC) for their unwavering support in advancing Africa’s integration agenda, including the support provided to Ethiopia in developing its National AfCFTA Implementation Strategy. He noted that consultative and inclusive forums have proven to be the most effective format, based on experiences with other AfCFTA State Parties in developing their national strategies.
Tunisia working to speed up integration on African continent (African Manager)
“Since March 2023, Tunisia has set up a national committee in charge of monitoring the African Continental Free Trade Area (AfCFTA) negotiations and implementing the necessary conditions for its operationalisation,” said Minister of Trade and Export Development Kalthoum Ben Rejeb on Monday during a meeting with AfCFTA Secretary-General Wamkele Mene. She added that this initiative demonstrates “Tunisia’s commitment to accelerate its integration at the African level”.
She noted that customs services and chambers of commerce have adopted the AfCFTA certificate of origin, adding that 93 export transactions have so far been carried out under this framework. Ben Rejeb also highlighted initiatives taken by Tunisia to strengthen its continental integration, including the creation of the African Centre for Digital Trade. She noted that Tunisia is proposing to host the headquarters of the African Regional Intellectual Property Organisation (ARIPO).
Among the projects requiring financial and technical support from the AfCFTA Secretariat and other African donors, she mentioned the Tunisia-Libya continental trade corridor towards sub-Saharan African countries, which was officially launched in August 2023. This trade corridor was part of the discussions with the AfCFTA Secretary General as “a project of national and strategic priority”.
Free Trade Agreement: U.S., Morocco committed to enhancing Partnership (MAP)
During the opening session of the event, attended by Morocco’s ambassador to the U.S., Youssef Amrani, and a host of American officials, the emphasis was put on the means to be implemented in order to further develop trade relations between Morocco and the United States and to give more dynamism to the free trade agreement, mainly in the sectors of agriculture, textiles, investment, and automobile.
“The exceptional dynamic triggered during the twenty years of implementation of our FTA is rich in progress and substantial achievements,” stressed the minister. He insisted on the need to redouble efforts to “fully capitalize on our cooperation and complete all outstanding issues to achieve even more fruitful and mutually beneficial outcomes.”
In this sense, he raised a series of priority issues linked to access for Moroccan products to the American market and vice versa, addressing several aspects related to overcoming non-tariff barriers. He also touched upon several structuring aspects of trade between the two countries, notably cooperation in the fields of agriculture, textile, automobile and investment. Agriculture is an essential aspect of this cooperation, recalled the minister, adding that access for Moroccan agricultural products to the American market remains below Morocco’s ambitions and its export potential.
Sustainable development solution to poverty, workers’ agitations, climate change - Prof. Na-Alla (Tribune Onilne)
The pursuit of sustainable development is a powerful elixir capable of solving many socioeconomic challenges such as poverty, hunger, workers agitation for a living wage, climate change impact, insecurity and many others, faced by the human society, said the out-gone Vice Chancellor of the University of Abuja, Professor Abdul-Rasheed Na-Alla.
He also noted that government at all levels, institutions of higher learning and private sector organisations must align with the United Nations outlined sustainable development goals, in an effort to tackle the multi-faceted challenges that faces Nigeria as a nation.
Prof. Na-Alla said this when he addressed newsmen as that sideline of the University of Abuja Centre for Sustainable Development banquet and award ceremony held at the Armed Forces Officers Mess and Suites in Abuja.
“Poverty is biting harder in our country today and we are all experiencing it in one way or the other. The idea of sustainable development goals put together by the United Nations is targeting to mobilise governments and everyone towards finding solutions to all the challenges that are fighting the progress, development and prosperity of the human society. “If we are not intentional and serious about finding solutions to the challenges that are worsening hunger, poverty, insecurity, diseases, agitations by workers and many other groups, we all will suffer the consequences.
‘EAC varying agriculture sector rules complicating investments’ (IPP)
EACH member country in the East African Community and in the wider context has its unique set of rules and regulations, making investment navigation a formidable enterprise, a diplomat has declared. Bart Pauwels, the agricultural counsellor for Kenya and Tanzania in the local mission of the Kingdom of the Netherlands, made this observation at a round table discussion here on recent Budget measures, with key stakeholders in the horticulture industry.
While contributors cited key challenges faced by foreign companies operating here, they affirmed that Tanzania has obtained upwards of euro 8.4m from exporting high-quality horticultural seeds.
“Foreign companies often encounter challenges that are vastly different from those they face at home,” the diplomat noted, indicating that to address these issues, the Dutch government via its foreign missions makes efforts to smooth out business operations for companies operating outside.
“Our primary goals are to keep companies informed about relevant policies and to connect them with essential stakeholders,” he stated, asserting that this approach facilitates easier business operations and promotes mutual growth. Local experts underscored the critical role of collaboration between governments and institutions in solving problems faced by foreign companies, by fostering strong relationships.
The Directorate of Transport of the ECOWAS Commission, in close collaboration with the Directorates of Trade, Customs & Taxation and Free Movement coordinated a technical workshop to review and validate the Interim Report on the Trade and Transport Facilitation Study of the Abidjan-Lagos Corridor Highway in Lomé, Togo from June 27 to 29, 2024.
As part of the implementation of the Abidjan-Lagos Corridor Highway Development Project, the ECOWAS Commission commissioned a consultant to develop a comprehensive Trade and Transport Facilitation framework to guide the operations of the Corridor Highway in terms of cross-border trade, customs, movement of goods, vehicles and persons along the Corridor.
The framework is expected to reflect existing International, Continental and Regional on texts on Trade and Transport facilitation to provide a simplified corridor-wide trade, transport and transit system that will ensure a seamless and free-flowing corridor with very minimal or no stops from beginning to end. It covers specific provisions for corridor connectivity, transit regimes, preferred trader schemes, cross-border vehicle insurance, integrated border management, ICT connectivity and information sharing on customs, immigration and corridor facilitation areas at National and Regional levels.
The Abidjan-Lagos Corridor Highway is part of the greater Dakar-Lagos Corridor which is a catalyst for Regional Integration and Sustainable Development and is one of the flagship priority development programmes of ECOWAS.
SADC and India sign Memorandum of Understanding on Economic Cooperation (SADC)
The Southern African Development Community (SADC) and the Government of the Republic of India on 02 July 2024 signed a new Memorandum of Understanding (MoU) on Economic Cooperation.
The MoU establishes a framework for strengthening economic cooperation between India and SADC, considering the regional priorities of SADC enshrined in the Regional Indicative Strategic Development Plan (RISDP 2020-2030) and the SADC Digital Transformation Strategy. Through the MoU, SADC and India will, amongst others, cooperate in the following areas: Industrialization; Human and Social Development: New and Emerging Technologies; Digital Public
Afreximbank Invests in Project to Rejuvenate AfriCaribbean Trade and Cultural Ties (Afreximbank)
African Export-Import Bank (Afreximbank) has signed an agreement to avail a Project Preparation Facility in favour of the of Government of the Commonwealth of The Bahamas to develop and implement an Afro-Caribbean Marketplace. Once implemented, the Afro-Caribbean Marketplace will comprise 90 outlets dedicated to the sale of authentically African and Caribbean products from more than 54 African countries, 20 Caribbean states, 16 islands of the Bahamas and a transshipment hub to be located at the grounds of the former International Bazaar and Royal Oasis Tower and Casino in Freeport, Grand Bahama Island.
When completed, the project is expected to transform Grand Bahama into a major trade and cultural hub, enhance The Bahamas’ strategic position in global maritime networks, foster economic growth, create jobs, and strengthen ties between African and Caribbean nations. The marketplace will boost SME growth, and foster cultural exchange, thereby contributing to the overall economic and social development of The Bahamas. The project preparation facility of US$ 1.86 million will fund essential pre-development activities that will advance the project to bankability, whereupon this is expected to unlock further investments estimated at US$ 50 million.
Afreximbank and the WTO Secretariat harmonize efforts to develop trade in Africa (Afreximbank)
African Export-Import Bank (Afreximbank) signed a Memorandum of Understanding (MoU) with the World Trade Organization (WTO) to amplify the impact of their strategically aligned joint efforts of promoting global trade leveraging Africa’s unique resource endowment. The MoU will allow the two organizations to pursue a collaborative framework for harmonizing and coordinating their efforts towards deepening key trade development activities on the continent.
Afreximbank and the WTO are part of an inter-agency partnership that is championing transformative change in the cotton industry in Africa’s Cotton-4 plus (C4+) countries, which include Benin, Burkina Faso, Chad and Mali as well as Côte d’Ivoire as an observer. The MOU will afford the Bank and the WTO Secretariat the opportunity to expand and deepen their collaboration to support the cotton sector beyond the C4+ countries. Their support will entail development of local and regional value chains of cotton in Africa as well as their integration into the global value chain.
Another area of collaboration under the understanding will be on Trade Finance matters, addressing non-tariff barriers to trade, the digital economy, capacity building, the oceans’ economic and fisheries subsidies, the sports and creative economies and trading in the context of the African Continental Free Trade Agreement.
Global Trade Update: Special insight – Trade and industrial policy (July 2024) (UNCTAD)
Global trade trends turned positive in the first quarter of 2024, with the value of trade in goods increasing by around 1% quarter-over-quarter and services by about 1.5%.This surge, fueled by positive trade dynamics for the United States and developing countries, particularly large Asian developing economies, is expected to add approximately $250 billion to goods trade and $100 billion to services trade in the first half of 2024 compared to the second half of 2023.Global forecasts for GDP growth remain at around 3% for 2024, with the short-term trade outlook being cautiously optimistic. If positive trends persist, global trade in 2024 could reach almost $32 trillion, yet it is unlikely to surpass its record level seen in 2022.
Trade in developing countries and South-South trade increased by about 2% in both imports and exports during the first quarter. In comparison, developed countries saw flat imports and a modest 1% rise in exports. On an annual basis, however, South-South trade fell by 5% when comparing the first quarter of 2023 to the first quarter of 2024.
pdf Global Trade Update, July 2024 (UNCTAD) (2.61 MB)
Goods trade posts 1% growth in the first quarter of 2024 after 2023 plateau (WTO)
The volume of world merchandise trade turned up in the first quarter of 2024 after remaining flat throughout 2023, according to the latest trade statistics released by the WTO. Merchandise trade as measured by the average of exports and imports was up 1.0% in the first quarter compared to the previous quarter. Trade in the first quarter was also up 1.4% compared to the same period in 2023.
Most regions contributed positively to the upturn in trade volume, with Europe remaining a notable exception as its exports and imports continued to decline. These are the first quarterly trade volume statistics released by the WTO since its most recent trade forecast was issued on 10 April in the organization’s Global Trade Outlook and Statistics report.
Members advance Sixth Review of SPS Agreement, address trade concerns (WTO)
WTO members made further progress on the Sixth Review of the Operation and Implementation of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) at a meeting of the SPS Committee on 25-28 June. They also discussed numerous trade concerns and acknowledged the Declaration adopted at the 13th WTO Ministerial Conference (MC13) on enhancing the implementation of special and differential treatment provisions in the SPS Agreement and the Agreement on Technical Barriers to Trade.
Members discussed 21 proposals for the Sixth Review, covering a wide variety of topics, such as: addressing modern challenges and emerging risks, voluntary third-party assurance programmes, regionalization, technology, transparency, and maximum residue levels. A thematic session discussed the uptake of digital tools, in particular the electronic phytosanitary certificate solution developed by the International Plant Protection Convention (IPPC), with linkages to the work of the Standards and Trade Development Facility (STDF).
Working group on small business considers future topics for discussion (WTO)
At its meeting on 1 July, the Informal Working Group (IWG) on Micro, Small and Medium-sized Enterprises (MSMEs) considered possible topics for discussion in their future work. The Group welcomed Mauritius, Cabo Verde and Maldives as new participants, bringing the total number of WTO members taking part in the initiative to 103.
The Group considered proposals put forward by members on the future workplan of the Group. The proposals address the issue of bridging the gap between trade policy and small businesses, good regulatory practices, supporting women-led MSMEs, low-value shipments, the informal sector, digital trade, and MSME provisions in regional trade agreements. Dedicated discussions will be organized in the coming months to explore these issues.
Local Markets & Food Chains Key to Tackling Global Hunger Crisis—Experts (IPES-Food)
Nearly 30% of the world’s population are facing food insecurity, while 600 million people are projected to be facing hunger by 2030, putting the world’s ‘zero hunger’ goal further away than ever.
The IPES-Food report, Food From Somewhere highlights the need for greater resilience in the face of mounting shocks. In recent times, the pandemic, the invasion of Ukraine, and escalating climate shocks have led to supply chain chaos, volatile food prices, empty shelves, and a surge in hunger levels. It comes as the UN reviews stalling progress towards the global ‘zero hunger’ goal (SDG2), and ahead of the latest comprehensive hunger update from the UN (15 July).
Global industrial food chains have demonstrated particular vulnerability to trade disruptions, climate impacts, and market volatility, while often undermining the livelihoods of small-scale producers, says the report.
Emerging economies have increasingly driven global agricultural market developments over the last 20 years and are projected to continue to do so over the next decade, but with regional shifts linked to changing demographics and new economic affluence, according to a report released today by the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization of the United Nations (FAO).
The OECD-FAO Agricultural Outlook 2024-2033 is the key global reference for medium-term prospects for agricultural commodity markets, and this year’s edition marks the 20th edition of the joint publication.
A notable shift expected over the coming decade is the increasing role of India, Southeast Asia and Sub-Saharan Africa and the declining role played by China. While China accounted for 28 percent of growth in global consumption of agriculture and fisheries in the previous decade, its share of additional demand over the coming decade is projected to fall to 11 percent, attributed not only to a declining population and slower income growth but also to a stabilisation of nutrition patterns.
Well-functioning international agricultural commodity markets will remain important for global food security, as 20 percent of calories are traded and rural livelihoods can benefit from participation in markets and global agrifood value chains.
Quick links
Understanding evolving China-Africa economic relations (WEF)
African governments must bring young people on board for AfCFTA trade pact to succeed (Daily Maverick)
Graça Machel remarks at the Global Agribusiness Forum (Graca Machel Trust)
The Digital Economy Conference usher in a new era: global leaders--China Economic Net (China Economic Net)
Will digital currencies become the norm as the world moves towards a cashless society? (The Conversation)
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South Africa achieves first primary budget surplus in 15 years (Engineering News)
South Africa achieved its first primary budget surplus in 15 years as it took a stern approach to funding State-owned companies that have drained government finances. Africa’s most-industrialised economy posted a primary surplus — when revenue exceeds non-interest expenditure — of R31.6 billion or 0.4% of gross domestic product in the year through March 2024, data in the South African Reserve Bank’s Quarterly Bulletin published on Thursday showed. That matched the National Treasury’s February forecast.
The data shows that Finance Minister Enoch Godongwana held a firm line on funding to debt-stricken State companies like ports and railways operator Transnet, providing relief only if they meet strict conditions including implementing recovery plans and selling non-core assets. In his February budget, he provided no new bailouts to state firms.
South Africa’s FDI inflows pick up in first quarter (Engineering News)
South Africa recorded foreign direct investment inflows of R24.4-billion in the first quarter of 2024, up from a revised R2.5-billion in the previous quarter, central bank data showed on Thursday. The South African Reserve Bank said in its Quarterly Bulletin that the inflows were largely due to the acquisition of a local vehicle-tracking company by an overseas firm, without naming the company that was bought.
See the Full Quarterly Bulletin - No 312
South Africa Cabinet Talks Stall After ANC Pulls Trade Offer (Bloomberg)
Talks between South Africa’s two biggest political parties on forming a cabinet stalled after the African National Congress withdrew an offer to appoint a member of the smaller Democratic Alliance as trade and industry minister, people familiar with the matter said. While the ANC offered to instead cede the tourism portfolio, the DA objected as the party sees it as a minor ministry, said the people who asked not to be identified as the negotiations are private.
Elon Musk’s Starlink cheaper data plan for Kenya jolts Safaricom, Airtel (The East African)
Elon Musk’s satellite internet provider Starlink has unveiled a new cheaper data plan for Kenya ushering in competition for Safaricom and Airtel, which have a big grip on the segment. Starlink has introduced a 50 gigabyte (GB) monthly data package at a rate of Ksh1,300 ($10.16) which is less than half the asking price for Airtel which charges Ksh3,000 ($23.44) for a similar package. Market leader Safaricom, on the other hand, offers a monthly package of 45GB at Ksh2,500 ($19.53).
“Affordable, high-speed internet with 50GB of data included for Ksh1,300/month (opt-in for additional data at Ksh20/GB),” reads a notification displayed on Starlink’s website adding that users will now be able to submit payments through mobile money options M-Pesa and Airtel Money.
The Starlink package is likely to usher in stiff competition for Safaricom and Airtel in the data segment. The latest disclosures by the Communications Authority of Kenya (CA) show that Safaricom controls the country’s mobile broadband subscriptions at 63.7 percent market share followed by Airtel at 31.5 percent.
State eyes more market for EPZ products through Agoa extension (The Standard)
The government is pushing for the extension of the African Growth and Opportunity Act (Agoa) beyond 2025 to increase access to the US market for the products processed at the Export Processing Zones (EPZ).
Investment, Trade and Industry Cabinet Secretary Rebecca Miano says the US Congress has given a green light on the possibility of extending the framework by 16 years up to 2041. “The EPZ firms will continue enjoying the quota-free duty-free market access to the US market. Further, the ongoing trade negotiations between Kenya and USA will also enhance US market access. This is through the ongoing conversation in the Strategic Trade and Investment Partnership,” she said.
Kingdom of Lesotho: Staff Concluding Statement of the 2024 Article IV Mission (IMF)
IMF staff estimates suggest that real GDP growth picked up modestly in FY23/24 to 2.2 percent, up from 1.6 percent in the previous year. In large part, this reflects accelerated construction from the Lesotho Highlands Water Project (LHWP-II). However, a decline in competitiveness in the apparel sector and lower diamond prices have depressed exports.
Lesotho’s fiscal balance registered a sizable surplus in FY23/24. Southern African Customs Union transfers were higher by more than 10 percent of GDP, compared with FY22/23. But even amid these windfall inflows, recurrent spending declined as a proportion of GDP, owing to a moratorium on public sector hiring and the adoption of the new Public Procurement Act. This outcome marks a welcome change from prior patterns in which windfall SACU transfers have often been matched with procyclical and ultimately unsustainable increases in spending. The net impact has been a fiscal surplus of 6.1 percent of GDP in FY23/24, which has helped lift gross international reserves to 4½ months of imports—strengthening the peg—and helped bring Lesotho’s public debt down to 61.5 percent of GDP from 64.5 percent in FY22/23.
Dar es Salaam traders’ strike expands to other cities, police deployed (The East African)
Traders in Tanzania’s commercial city of Dar es Salaam are continuing with their strike, which is now expanding to other parts of the city and across different regions of the country. The strike, which started in Dar es Salaam’s Kariakoo on Monday, a popular market area in the country and one of the busiest in East Africa, stems from traders’ dissatisfaction with the multiple taxes and collection methods executed by the Tanzania Revenue Authority (TRA).
While the strike continues to spread, the government said on Wednesday that it was working on the concerns of traders, noting however that implementing all of them immediately would have far-reaching ramifications on the execution of some national development projects. The reaction by the Finance Minister Dr Mwigulu Nchemba as delivered in the Parliament, comes at a time when the traders’ strike entered its third day on Wednesday.
Dr Nchemba told the Parliament that implementing a concern to reduce the Value Added Tax (VAT) from 18 to 12 percent would result in a revenue shortfall of Tsh600 billion ($230.3 million) at once, hence affecting the execution of the ongoing mega projects.
Uganda Should Improve Public Spending on Health for a More Productive Population (World Bank)
Economic activity in Uganda has remained resilient despite multiple successive shocks, with real gross domestic product (GDP) accelerating from 5.3% in FY22/23 to an estimated 6% in FY23/24, a new World Bank report notes. The expansion was driven by oil-related construction activity and the growth of the mining and quarrying sector, which benefited from sustained increases in gold prices and an improved domestic environment for artisanal mining.
According to the 23rd edition of the Uganda Economic Update (UEU) released today, low inflation and recovery of real income and employment bolstered consumption, while private investment remained resilient despite unfavorable domestic and global financial conditions. As a result, exports and manufacturing orders increased between August 2023 and May 2024. Per capita income reached about $980 in FY22/23, and continued growth will push Uganda closer to the lower-middle-income threshold.
Govt approves SADC Charter on women (The Herald)
Zimbabwe has approved the signing and ratification of the organisation charter for the SADC Women in Science, Engineering and Technology Organisation, Minister of Information, Publicity and Broadcasting Services, Dr Jenfan Muswere, has said. The SADC charter was approved by SADC member states in 2017 and entered into force in September 2022 following its signing by 11 Member States.
“Over the years, despite attempts to encourage women and girls’ participation, Zimbabwe has also witnessed persistent gender gaps at all levels of science, technology, engineering and mathematics (STEM),” said Dr Muswere after the Cabinet meeting on Tuesday. “On all fronts, the country has made commendable efforts in advancing socio-economic issues and other matters of interest working in collaboration with other SADC member states.”
See also: Zim development course fits into Sadc industrialisation agenda (The Herald)
AfCFTA: Competitiveness critical for survival, growth (The Herald)
With the African Continental Free Trade Area (AfCFTA) liberalising markets across the continent, competitiveness has become an indispensable part of Zimbabwe’s economic agenda, Industry, and Commerce permanent secretary Dr Thomas Utete Wushe said at a recent official launch of the 2023 Zimbabwe Competitiveness Report (ZCR) and the Soyabean Value Chain Competitiveness Report by the National Competitiveness Commission (NCC) in Harare.
The elimination of tariffs and trade barriers under AfCFTA is expected to boost intra-African trade by over US$450 billion by 2035. However, Zimbabwean businesses face competition from countries with more developed manufacturing sectors and lower production costs.
“I, therefore, implore every one of us to embrace this challenge collectively to enhance our country’s competitiveness and seize the opportunities presented by the enlarged market,” said Dr Utete Ushe. A recent survey by the Confederation of Zimbabwe Industries (CZI) indicated that the majority of local firms were not yet ready for AfCFTA
ZRA looking to procure more drones to curb illicit trade - Banda (Zambia: News Diggers)
The Zambia Revenue Authority says it is committed to adopting innovative solutions to drive economic growth and development. The authority says it looks forward to continued collaboration with the World Bank to acquire more drones for border surveillance and combating illicit trade. In a speech read on his behalf by Acting Commissioner General Joseph Nonde during the Drones in Transport and Trade Facilitation Seminar, Tuesday, ZRA Commissioner General Dingani Banda said the use of drones aligned with the authority’s vision of modernising infrastructure and improving trade facilitation. “The Zambia Revenue Authority (ZRA) is committed to adopting innovative solutions to drive economic growth and development. The use of drones aligns with our vision of modernising infrastructure and improving trade facilitation.
IMF says Nigeria, other developing countries lack digital infrastructure for AI (Nairametrics)
A new report by the International Monetary Fund (IMF) has revealed that Nigeria and some other developing countries lack digital infrastructure for the deployment of Artificial Intelligence (AI) technology. This is despite the fact that Nigeria recently unveiled its AI strategy and also launched its first Multilingual Large Language Model (LLM) in April.
IMF disclosed this in its new ‘AI Preparedness Index’ where it tracks 174 economies based on their digital infrastructure, human capital, labour policies, innovation, integration, and regulation. According to the report, most developing economies are lagging in the area of digital infrastructure for AI and are the least prepared for the technology.
While noting that wealthier economies tend to be better equipped for AI adoption than low-income countries, the IMF said AI may further worsen the inequality that already exists in the world.
To be better prepared for AI, the IMF said the policy priority for emerging markets and developing economies should be to lay a strong foundation by investing in digital infrastructure and digital training for workers. It added that policymakers in advanced economies should expand social safety nets, invest in training workers, and prioritize AI innovation and integration. According to the IMF, countries globally would need to coordinate with one another to strengthen regulation to protect people from potential risks and abuses and build trust in AI.
Nigeria Needs Robust National Cybersecurity Intelligence, Strategies for Digital Transformation - Ribadu (Techeconomy)
Mallam Nuhu Ribadu, the national security adviser, has stressed the need for robust national cybersecurity intelligence initiatives and strategies that will enable Nigeria achieve a successful digital transformation and safe cyberspace. Ribadu said this at the fourth edition of the Cybersecurity Forum and Workshop, organised by the Nigeria Computer Society (NCS), in Abuja, recently, with the theme: ‘The Intelligent Initiatives and Strategies for National Cybersecurity Management.’
“The revised National Cybersecurity Policy and Strategy Document focuses on eight pillars, designed to significantly enhance the Nigerian cybersecurity culture, which include: Strengthening cybersecurity governance and coordination; Protecting critical national information infrastructure; Enhancing cybersecurity incidence management; Strengthening legal and regulatory framework; Enhancing cyber defense capability; Promoting thriving digital economy; Ensuring monitoring and evaluation; and Stimulate international corporation. “In recognition of the need to improve national cybersecurity strategy and intelligence initiatives, the National Cybersecurity Coordination Centre, was established and recently operationalised to address issues of cybersecurity in the country,” Ribadu said.
Burkina Faso: Launch of two World Bank Economic Reports (World Bank)
The World Bank today launched (i) the Burkina Faso Economic Update and (ii) the Country Economic Memorandum (CEM).
The Economic Update highlights recent economic trends in the country and analyzes the short- and medium-term economic outlook. Focusing on scaling up social assistance, the April 2024 edition, “Sustaining the Momentum of Social Assistance Reform,” indicates that the economy grew modestly by 3.2% in 2023, mostly supported by the services sector, while the mining sector was hampered by the security crisis. Also, the impact of social assistance spending of about 2.6% of GDP in terms of poverty reduction is hampered by the inefficiency of the system, in particular its fragmentation.
The CEM, one of the World Bank’s major analytical documents, analyzes the country’s economic developments over the past decades and constructs long-term growth scenarios while formulating public policy recommendations to steer the economy toward more efficient, sustainable, and inclusive growth. The document launched today notes that Burkina Faso’s economic growth in recent decades has not been sufficient to ensure a strong structural transformation of its economy, nor to significantly reduce the number of people living in extreme poverty. The report suggests policy options including raising agricultural productivity, increasing the technological sophistication of firms, improving resource allocation and productivity through better transport, and achieving gender equality. It also provides detailed recommendations that can help the country break out of the fragility cycle by accelerating growth and placing the economy on the path to lower-middle-income status.
EAC tables $113m in budget estimates (IPPMedia)
EAC council of ministers chairman Deng Aloor Kuol has tabled the fiscal 2024/2025 budget estimates of the East African Community (EAC). The minister, holding the regional cooperation portfolio for South Sudan and chairman of the EAC council of ministers, proposed the EAC finance bill before the East African Legislative Assembly (EALA) here yesterday. Total allocations for EAC organs and institutions are pegged at $112,984,442 with 61 percent of the figure expected to come from the eight partner states contributions, set at $67,785,519 in total.
The proposals are focused on sustainable economic transformation through fiscal consolidation and investment in climate change mitigation and adaptation efforts for improved livelihoods. The proposed budget will dedicate more resources to the secretariat, on account of an overview of the region’s economic performance outlook, and the priorities for fiscal 2024/2025.
The partner states’ economies GDP growth rates are expected to be higher than global and Sub-Saharan Africa average growth rates of 3.2 percent and 3.8 percent respectively, he stated. This is largely due to strong performance in different sectors, supported by sustained public Investments, he said, outlining priority programmes and key achievements for the outgoing financial year. The listed areas are regional security, private sector engagement, trade facilitation, monetary union transparency and technology innovations.
Intra-East African Community total trade soars (New Vision)
The Director Economic Affairs, in the Ministry of Finance, Moses Kaggwa has said the intra-East African Community (EAC) total trade grew by 13.1% to $12.1 billion in 2023, up from $10.6 billion in 2022. The percentage share of the intra-EAC trade to EAC total trade was 15% in 2023. Kaggwa made the remarks today (Thursday, June 27, 2024) at the EAC post-budget dialogue for the 2024/25 Financial Year on tax and debt at Hotel Africana in Kampala on Wednesday, June 26, 2024.
He also said the EAC partner states finalised the comprehensive review of the EAC common external tariff (CET) and agreed on a four-band structure. He added that the implementation of the CET already commenced concerning all products imported into the community. Kaggwa said the EAC is now working on the finalization of the EAC assembling and manufacturing of products regulations to promote the use of local raw materials and goods manufactured in the community.
EAC bloc Adopts Comprehensive Roadmap for Responsible AI Implementation (Financial Fortune Media)
The Eastern Africa sub-regional forum on Artificial Intelligence concluded this week with a high-level round table discussion on “AI and Sustainable Development in Eastern Africa.” The three-day event, which began on Monday, 23rd June 2024 brought together ministers and key stakeholders from across the region to address the challenges and opportunities presented by AI technologies.
The forum’s closing session, moderated by UNESCO Assistant Director-General for Social and Human Sciences, Ms. Gabriela Ramos, featured a panel of distinguished ministers from Kenya, Seychelles, Uganda, Comoros, and Somalia.
A significant highlight of the event was the launch of Kenya’s AI Readiness Assessment report, which is expected to serve as a blueprint for the country’s AI development and implementation strategies. Kenya was commended for being the first of 22 countries to accept the Readiness Assessment Report, setting a precedent for other nations in the region.
The forum concluded with the adoption of the Nairobi Statement on Artificial Intelligence in Eastern Africa. H.E. Mr. Peter K. Ngure, Ambassador Extraordinary and Plenipotentiary of Kenya to UNESCO, presented key recommendations from the statement: 1. Commit to developing knowledge in line with African ethical values to understand the social and technological implications of AI, facilitating work with different stakeholders. 2. Facilitate policy dialogues at every level to mitigate the digital divide and encourage the building of governance mechanisms to monetize data collected from African people. 3. Strengthen the capacity of government, civil society, and the private sector to understand and use AI technologies and applications. Consider both the opportunities and challenges that AI presents for youth. 4. Expand investment towards infrastructure development to address cross-cutting issues for AI. Establish ICT innovation and technology hubs and incubation centers.
Nigeria, World Bank, ECOWAS, others to promote regional hub for fertiliser (The Guardian Nigeria)
The Federal Ministry of Agriculture and Rural Development, in collaboration with the World Bank, Economic Community of West African States (ECOWAS), Accelerating Impacts of CGIAR Climate Research for Africa (AICCRA), International Institute of Tropical Agriculture (IITA), Forum for Agricultural Research in Africa (FARA) and CORAF – West and Central Africa Council for Agricultural Research Development, have agreed to work towards promoting a regional hub for fertiliser and soil health for West Africa and the Sahel.
The partners said the collaboration would enhance agricultural productivity and sustainable profitability across the region. They also noted that the development would combine cutting-edge laboratory testing and training facilities with cross-sector experts to support development of advanced soil health and fertiliser technologies in West Africa and the Sahel.
Minister of State for Agriculture, Aliyu Sabi Abdullahi, whose speech was presented by a representative, said that by the year 2033, the hub would help to increase yields and income for three million farmers, improve soil health on 1.5 million hectares of land, and equip 1.5 million farmers to adapt to climate change. “This regional hub is a groundbreaking step towards revolutionising agricultural practices in West Africa and the Sahel,” he said.
Food security, LDCs, small business champions take centre stage at Day 2 of Aid for Trade (WTO)
Day 2 of the 2024 Aid for Trade Global Review on 27 June explored how least developed countries (LDCs) can become more active players in international trade and achieve food security. The event also saw the announcement of the winners of the 2024 Small Business Champions Competition.
Drawing attention to how political conflicts, value chain disruptions and mounting inflation are compromising food security in developing economies, a session entitled “Strengthening food security through trade” explored how the international trade community can act to enhance access to safe, nutritious and affordable food.
Special emphasis was placed on helping small farmers gain more from trade, for example by boosting their productivity and making their voice heard in international fora. The importance of multi-stakeholder cooperation was also highlighted, notably public-private partnerships.
Speaking as the coordinating economy of the WTO African Group, Chad’s Minister of Trade and Industry, Mathieu Guibolo Fanga, spoke about the importance of agriculture in African economies for job creation and poverty alleviation. “Within the multilateral trading system, we seek to benefit more fully from the advantages that African countries possess in the agricultural sector,” he said, placing a particular emphasis on productive capacity. Advancing agricultural multilateral negotiations at the WTO will also be paramount to establishing fair conditions for international trade in agricultural products.”
Joint WTO-World Bank work programme on trade in services unveiled at Aid for Trade Review (WTO)
During a panel session at the Aid for Trade Global Review on 26 June, Deputy Director-General Johanna Hill unveiled a joint programme of activities by the WTO and the World Bank to assist developing economies in services trade. This programme is a follow-up to the recommendations contained in the joint publication “Trade in Services for Development” launched by the two organizations in 2023.
The joint work programme seeks to tackle some of the challenges that developing economies are facing in unlocking the benefits of services trade and harnessing the sector’s export potential. “For many developing countries, prospects for export-led growth now lie to a much greater extent in services,” DDG Hill noted. “The ability to supply, access and export efficient services has become central to the realization of development strategies.”
“Trade in Services for Development“ underscored the significant and multifaceted development impact of trade in services and the important opportunities it offers developing economies. The report said increased levels of Aid for Trade in services are required to help developing economies take fuller advantage of the growth and development opportunities presented by services trade.
High-level session examines challenges for least developed countries in global trade
Members adopt key report on challenges and opportunities in SPS Agreement implementation
Worldwide push for sustainable fisheries highlighted at Aid for Trade Global Review
Global hunger is on a “dangerous” rising trajectory and achieving a sustainable and food-secure world requires not just economic policy measures but strong political and social commitments, QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO), said today at a high-level session during the Global Review of Aid for Trade hosted by the World Trade Organization in Geneva. Fair trade practices are part of the promotion of inclusive and equitable growth, he said, noting that trade by nature should be complementary.
Feeding the world is not just a technical issue but a security challenge with humanity’s future at stake, said Atangana, who said that clear and binding rules are critical for developing nations and emphasized that Aid for Trade initiatives must be in the service of helping the supply side and developing production, without which infrastructure has less value.
Food security should be a priority for the WTO, said Cameroon’s Minister of Trade, Mathieu Guibolo Fanaa, adding that this will require increasing agricultural production in Africa, which in turn will require equitable conditions in international markets.
Quick links
AfCFTA – an historic Catalyst for Africa’s Economic Transformation and Caribbean Trade Integration (Afreximbank)
Video: WTO head Okonjo-Iweala on Africa’s trade and development roadmap (France24)
Alternative payment systems in Africa and Brics member states can shift geoeconomic dynamics (Mail & Guardian)
Logistics packaging for perishable cargo: here’s what to know (Maersk)
Related News
tralac Daily News
S.Africa says cases against EU citrus measures progressing at WTO (The Star)
South Africa expects the World Trade Organisation to set up adjudication panels in July to examine its two cases against the European Union over its phytosanitary measures for citrus imports, the country said on Wednesday. The world’s second largest citrus exporter after Spain is challenging changes made in 2022 to the EU’s phytosanitary requirements for oranges and other citrus products.
South Africa, which says the EU measures “are unscientific and discriminatory”, this week requested the establishment of two panels at a meeting of the WTO’s Dispute Settlement Body to examine its complaints after consultations with the EU failed to reach a “satisfactory conclusion”. “This is the first time that South Africa progresses a dispute at the WTO beyond the panel state of the established DSB process,” South Africa’s trade and agriculture ministries said in a joint statement with the Citrus Growers’ Association of Southern Africa.
“While the EU did not at this time accept South Africa’s request for the two panels, the set DSB procedure is that the requested adjudication panels will be established at its next meeting in July 2024,” the statement said.
The EU has said it regretted South Africa’s decision to pursue panel proceedings in the two cases, but maintained that its pest control measures were entirely justified and that it would succeed in any dispute proceedings. The European bloc is the biggest market for South African citrus, accounting for 36% of total exports last year, according to the Citrus Growers’ Association.
South Africa continues to push for long extension to Agoa well ahead of 2025 expiry (Engineering News)
With the expiry of the Africa Growth and Opportunity Act 15 months away, South Africa is continuing to call for an early and substantial extension of the preferential trade arrangement, which has been in place since 2000. Department of Trade, Industry and Competition chief director for bilateral trade relations Malose Letsoalo reported this week that South Africa remained optimistic that Agoa would be extended beyond its September 2025 expiry date.
Speaking during a Trade and Industrial Policy Strategies (TIPS) discussion, Letsoalo highlighted ongoing bipartisan support for Agoa in the US Congress, which could consider extending the scheme for up to 16 years to 2041 in line with a Bill put forward by Democratic Senator Chris Coons and Republican Senator James Risch. African governments have argued that an extension of at least ten years was necessary to provide the certainty required for more countries to take fuller advantage of the unilateral scheme.
South Africa, whose Agoa status came into question last year when tensions over an alleged arms sale to Russia almost prompted an out-of-cycle review of the country’s eligibility, remains one of a handful of countries that genuinely benefits from the arrangement. TIPS executive director Dr Saul Levin quoted joint research undertaken with the Congress of South African Trade Unions (Cosatu) showing that, while much of South Africa’s commodity exports enter the US duty-free outside of Agoa, the country’s agriculture and manufacturing exports benefitted disproportionately from the country’s eligibility.
Related:
‘Champagne corks will pop in Beijing and Moscow’ if US fails to renew AGOA, trade expert warns (News24)
Sustainable Trade and Growth: AGOA’s Role in Ghana’s Economic Development (Modern Ghana)
‘Second wave’ of Operation Vulindlela set to prioritise ‘green and digital’ growth (Engineering News)
The ‘second wave’ of government’s Operation Vulindlela initiative is poised to be widened to include additional structural reforms to those that have been pursued to date in electricity, freight logistics, telecoms, water and skills with the goal of stimulating higher levels of economic growth over the coming five years.
Established jointly by the Presidency and the National Treasury in October 2020 to accelerate priority structural reforms to overcome problems identified as “binding constraints” to economic performance, Operation Vulindlela is expected to continue as a flagship programme under the government of national unity.
The Presidency’s project management unit head Rudi Dicks told attendees to a conference convened to deliberate on “Phase 2” that the intention was to consolidate the progress that had been made under the initial set of reforms, while adding additional reforms. The initiative will continue to focus on a small set of priorities but could include new areas with the potential to lift South Africa out of its current low GDP growth trajectory, which had averaged at a paltry 1.1% since 2010, resulting in South Africa decoupling from other middle-income countries where growth had been significantly higher.
While the new priority areas were still to be finalised, Musker indicated that there was an opportunity to harness South Africa’s unique strengths and advantages to unlock growth that was both “green and digital”. “Over the next five years, South Africa has an opportunity to accelerate growth through massive new investment in the energy sector, leveraging its unique solar and wind resources to reduce energy costs and power green manufacturing.” In addition, there was potential to position South Africa as “a major player in the digital economy, creating jobs in business process outsourcing and digital services while encouraging a dynamic ecosystem for high-growth startups”.
Kenya’s Ruto says finance bill to be withdrawn after deadly protests (Al Jazeera)
Kenya’s President William Ruto has said he will not sign a finance bill that led protesters to storm Parliament in anger over rising costs, adding that the bill containing tax hikes would “be withdrawn”. “I concede and therefore I will not sign the 2024 finance bill and it shall subsequently be withdrawn,” Ruto said in a televised address on Wednesday. “The people have spoken.”
His comments came after dozens of people were reported killed and scores more wounded as police broke up rallies against the contentious bill. The move will be seen as a major victory for the week-old protest movement that grew from online condemnations of the proposed tax increases into mass rallies demanding a political overhaul, in the most serious crisis of Ruto’s two-year-old presidency.
Mainly youth-led, the rallies began last week in a largely peaceful fashion as thousands protested against the proposed tax increases, which, in the original version, included price rises on basics such as bread and nappies. However, tensions spiked on Tuesday as the Parliament of Kenya passed the bill. As police used tear gas, water cannon and rubber bullets on crowds in Nairobi, reports of live rounds being fired saw protesters storm Parliament and set it alight. Ruto then deployed the military.
Related:
United Nations, African Union condemn violence in Kenya’s protests (Citizen Digital)
Kenya Finance Bill: Why has it triggered protests? (The East African)
New system for e passport holders (The Herald)
Holders of Zimbabwean and SADC e-passports will soon be able to walk into Zimbabwe through a scanner on an electronic gate without queuing or the involvement of an immigration official, as part of measures to remove bottlenecks, delays and enhance promotion of ease of doing business, legislators have heard.
Immigration principal officer Mr Oscar Chitsa said the Immigration Department was working on a border management system that would see those holding Zimbabwean and Sadc e-passports served swiftly at e-gates where they will have their travel documents scanned electronically without going through the rigours of long queues associated with ports of entry experienced at places such as the Robert Gabriel Mugabe International Airport and the Beitbridge Border Post, especially during public holidays.
Mr Chitsa was giving oral evidence before Parliament’s Portfolio Committee on Industry and Commerce, who wanted to know what the Border Efficiency Management Committee was doing to address the ease of business environment at ports of entry. “We are working on a new border management system, which we will be launching this year and will provide efficiency at points of entry,” he said.
Resource management and capacity development a major pathway to economic growth in Nigeria (The Guardian Nigeria)
Resource management and capacity development are essential components for fostering economic growth in any country, including Nigeria. With a population of over 200 million people, Nigeria has the potential to be a major player in the global economy. However, the country faces several challenges that hinder its economic progress, including heavy reliance on imports, undertrained employees, underemployment of highly qualified individuals, and the absence of adequate manual labor in key industries. In order to overcome these challenges and unlock its full economic potential, Nigeria must focus on improving resource management and capacity development.
One of the major obstacles to economic growth in Nigeria is the country’s heavy dependence on imports for goods that can be readily produced domestically. This reliance on imports not only drains the country’s foreign reserves but also stifles local industries and inhibits economic growth. By investing in resource management and capacity development, Nigeria can reduce its dependence on imports and boost domestic production. This can be achieved through the implementation of policies that support local industries, such as tax incentives, subsidies, and trade barriers.
Stakeholders to deliberate on Nigeria’s digital economy agenda (The Guardian Nigeria)
Key stakeholders in the country’s digital economy sector are set to converge at the forthcoming Policy Implementation Assisted Forum (PIAFo) to dissect and stimulate the effective implementation of Nigeria’s renewed agenda for the digital economy. PIAFo, now in its sixth edition, is slated for July 10 at Radisson Blu Hotels, GRA Ikeja, Lagos, with a thematic focus, ‘Accelerating Collective Prosperity through Technical Efficiency’.
According to the organisers, the strategic plan of the Federal Ministry of Communications, Innovation Digital Economy (FMCIDE) released recently by the federal government is the anchor policy for the forum as the strategic plan embodies Nigeria’s digital aspirations. They noted that the current digital economy footprint puts Nigeria on track to attain many targets in years to come; adding that since PIAFo is an initiative designed to drive policies to fruition, the forthcoming conference underscores the need to leverage effective dialogue among relevant stakeholders to achieve the targets.
FG Bans Single-use Plastics In MDAs (Leadership News)
In a significant move towards environmental sustainability, the Federal Government has announced a ban on single-use plastics across all Ministries, Departments, and Agencies (MDAs). This decision was revealed by the minister of state for environment, Iziaq Adekunle Salako, following a Federal Executive Council meeting presided over by President Bola Tinubu.
Speaking to State House correspondents after the meeting, Salako emphasised that this ban aligns with the government’s broader plastic waste management strategy. He said the ban on single plastics in MDAs is preparatory to a nationwide ban next year. The minister highlighted the severity of plastic pollution in Nigeria, describing it as “a major issue in our country.” He explained that the ban is part of the administration’s efforts to promote responsible plastic waste management by refusing, reducing, reusing, repurposing, and recycling.
He said, “The federal ministry of environment proposed and the federal executive council approved the ban on the use of on-the-go plastics, what we know as single-use plastics in all ministries, agencies and departments of the federal governments. This is in line with the 2022 national policy on from gas to waste management.
Fostering a Vibrant and Inclusive Private Sector is Key to Somalia’s Resilient Growth (World Bank)
Since Somalia’s private sector accounts for an estimated 95 percent of total jobs created, marshaling the private sector to support the country’s development is critical for reconstruction, transitioning from fragility, and generating more inclusive economic dividends for it’s people. The country also needs to focus on growth (to avoid falling back into debt), create jobs, and enhance economic opportunities for citizens.
Published today, the Somalia Country Private Sector Diagnostic (CPSD) notes that while private businesses have been remarkably resilient and presently provide most of the products and services on offer in the country, Somalia’s productive tradable sectors remain subdued and fall short of providing a strong basis for structural transformation. Furthermore, private sector activity is concentrated on commerce and other, mostly non-tradable, consumption-driven services. This consumption-driven growth often benefits a few firms that leverage their market-dominating positions. Therefore, most Somali firms remain highly disadvantaged, leading to a “missing middle” and lower overall productivity and job generation. The report also finds that low economic integration and a minimal complexity of foreign direct investment (FDI) weigh on the productivity growth prospects of the Somali private sector, limiting opportunities for trade, technological advancement, and efficient resource allocation.
“Somalia can develop and deepen reforms that enable effective and equitable formal institutions and regulatory frameworks that facilitate private sector-led economic transformation,” said Kristina Svensson, World Bank Country Manager for Somalia.
Egypt’s Financing Strategy to emphasize sustainable development goals (EgyptToday)
Deputy Minister of Planning and Economic Development, Ahmed Kamali, took charge of leading the meeting for the Technical Committee responsible for the preparation and oversight of Egypt’s Integrated National Financing Strategy. In this role, Kamali underscored the significance of the strategy, which outlines Egypt’s approach to financing sustainable development goals. He also highlighted that the strategy will continue to evolve with support from various United Nations agencies.
During the meeting, Kamali emphasized the crucial role of financing in achieving sustainability, whether through the Sustainable Development Goals or Egypt Vision 2030. Kamali further discussed the necessity of moving beyond simple resource transfers and embracing sustainable financing, which necessitates reorganizing financial flows to accomplish shared objectives. He elaborated on Egypt’s focus on five key sectors: health, education, sanitation, transportation, and social protection, all while considering gender equality and climate change.
The ECOWAS Commission hosted on Wednesday 26 June 2024 in Abuja, Nigeria, the second meeting of the Committee of Permanent Representatives of ECOWAS Member States as an advisory body to the ECOWAS Council of Ministers. This meeting which brings together the Ambassadors of ECOWAS Member States accredited to the Commission, is being held prior to the start of the statutory meetings of ECOWAS. The purpose of the meeting is to enable the Ambassadors representing the Member States to examine and review the various issues that will be submitted to the ECOWAS Council of Ministers next week. A number of issues will be discussed at this second meeting of Ambassadors. These include the presentation of a memorandum on the status of implementation of the trade liberalisation scheme in West Africa.
Africa gets all-in-one transport and logistics platform (The Namibian)
Thelo Group, which provides transport and logistics solutions for freight owners across Africa, is adding new services to combine different transportation methods (rail, ports and trucks) to create efficient routes for moving resources at lower cost. These resources are largely mining commodities, agricultural produce, containers and bulk liquids.
Thelo’s offering of interconnected transport corridors is in response to Africa’s transportation challenges, and a strategic move to support African Continental Free Trade Area’s (AfCFTA) single market. As a result of the AfCFTA, the transport sector is expected to expand by nearly 50%, significantly boosting intra-African trade. But its success hinges on improving Africa’s road, rail and transport infrastructure; a challenge that Thelo is actively addressing. Currently, transportation costs related to logistics in Africa are up to 75% higher than in other parts of the world.
“As an independent African company, Thelo is playing an instrumental role in developing, operating and managing national and regional development corridors. Importantly, Thelo’s multi-freight, multi-user approach will deliver more efficient transport solutions to multiple freight owners at economies of scale that will reduce transport and logistic costs,” Ntuli says.
The AfCFTA, Mastercard Foundation and TradeMark Africa Collaborate on a Four-Year Fisheries Program to Empower Women and Youth in Africa (Mastercard Foundation)
African Continental Free Trade Area (AfCFTA) Secretariat, in partnership with the Mastercard Foundation and TradeMark Africa, has announced a four-year fisheries program to be implemented across seven countries to enable over 240,000 work opportunities and boost trade in fish and fish products by about $100 million by 2028.
The “Women and Youth Economic Empowerment in Fisheries” program will enhance the participation of women and youth in fisheries in line with the adopted AfCFTA Protocol on Women and Youth in Trade. This announcement was made during the 14th Meeting of the Council of Ministers responsible for Trade in Zanzibar. The program is designed to address structural challenges women and youth face when participating in the fisheries value chain. It will offer training, facilitate access to markets and finance, catalyze supply chain linkages, create digital solutions, simplify trade regimes, enhance compliance to standards and enable streamlined cross-border market access.
The program is a culmination of work between the AfCFTA Secretariat and the Mastercard Foundation. This work started with the development of the AfCFTA private sector strategy, where priority value chains were identified to boost intra-Africa trade and production. TradeMark Africa will implement the program to benefit Small, Medium and Micro Enterprises (SMMEs) in Kenya, Uganda, Tanzania, the Democratic Republic of Congo (DRC), Zambia, Nigeria and selected Island states.
Fresh push for cryptocurrency trade in Africa (Nation)
There is a fresh push to have African countries enhance trading amongst themselves to growing their economies. The initiative, which mostly focuses on the youth, seeks to create a trading environment that allows them to not only exchange ideas, but provide a platform for buying and selling commodities that are made in Africa through peer-to-peer trading (P2P).
Driving the new push is a finance outfit under the banner of a Pan African movement by the name ‘noones.com’ which is providing an avenue for the continent’s 54 nations to trade and offer job opportunities for the youth who are hungry for instant results.
“We need a means of exchange as that is the biggest problem in the world. There is no form of payment in the world currently that is borderless; it is only cryptocurrency to put Africa on a level playing field,” said Noones.com app CEO Ray Yousef. “Once Africa can trade with itself, the result is simple – it is options. Imagine 20 cities like Dubai popping around Africa. Most of our traders are aged between 19 and 26 years,” he said.
We need to fast-track reforms at the AU (The Star)
Speaking in Naivasha during a retreat on the Institutional Reforms of the African Union on Tuesday, Ruto said the reforms must be commensurate with the magnitude, challenges, potential and ambition of the African continent.
Ruto added that the continent must build institutions that can be used to position Africa appropriately. “Under AU Agenda 2063, we have a coherent pathway to unleash the potential and propel the continent into the league of highly developed society,” he said. “We must intentionally align our pan-African institutions with the continent’s aspirations and configure them to be agile and responsive.” Ruto regretted that Africa is endowed with abundant potential that largely remains untapped.
“This denies immense opportunities in many sectors including agriculture, mining, manufacturing and energy. It is correct to say Africa cannot continue to play in the periphery,” he added.
Pan-African Conference on Illicit Financial Flows (IFFS) and Taxation (AU)
The Pan African Conference on Illicit Financial Flows (PAC) is the annual premier forum for the collective convergence of actors to discuss issues of illicit financial flows and taxation in Africa. The Conference (PAC2024) will take place in Tunis, Tunisia from 26th – 28th June 2024, under the theme: “Africa’s Tax Agenda in Combatting Illicit Financial Flows: From Words to Action.”
The expected outcomes for the PAC 2024 are: A collection of best practices and relevant continental-wide initiatives undertaken by institutions and partners in response to the HLP report findings and recommendations in combating IFFs in Africa; A review of the effectiveness of measures implemented in response to the African Union Heads of State and Government decisions and commitments to curb IFFs, meeting the financing gap for Africa’s development as envisioned under Agenda 2063 and the HLP report findings and recommendations in combating IFFs in Africa; A compilation of the contributions of the African Union Commission and stakeholders including the Africa Tax Administration forum, Tax Justice Network Africa and others in addressing IFFs; The establishment of a multi-stakeholder partnership to ensure inclusivity and broad-based support.
World Customs Organization Releases Illicit Trade Report 2023 (WCO)
The World Customs Organization (WCO) announces the release of the Illicit Trade Report 2023, a comprehensive analysis of the current state and evolving trends of illicit trade. This year’s report underscores the relentless challenges posed by illicit trade in an increasingly globalized world, highlighting its detrimental impact on legitimate markets, public trust, and the financing of criminal enterprises.
By examining case studies, open-source intelligence, statistical data, and enforcement challenges, as well as leveraging technology through the CEN Data Visualization Tool, this report sheds light on the scale and scope of illicit trade. It offers actionable insights for policymakers and stakeholders across the globe.
Mr. Ian Saunders, WCO Secretary General, has emphasized the importance of broadening perspectives, fostering creativity, and embracing innovative approaches to combat illicit trade. “With the insights gained from this report, we must enhance our understanding, engage actively, and improve our responsiveness and effectiveness,” he stated. “Customs administrations must remain pivotal in facilitating global trade and ensuring security amidst a constantly evolving landscape.”
In addition to providing an overview of current trends, the Illicit Trade Report 2023 highlights several success stories where enhanced enforcement actions have led to significant seizures and disruptions of illicit activities. These examples serve as a testament to the effectiveness of the strategies employed and the importance of continued vigilance and adaptation.
Remittances Slowed in 2023, Expected to Grow Faster in 2024 (World Bank)
After a period of strong growth during 2021-2022, officially recorded remittance flows to low- and middle-income countries (LMICs) moderated in 2023, reaching an estimated $656 billion, according to the World Bank’s latest Migration and Development Brief, released today.
The modest 0.7% growth rate reflects large variances in regional growth, but remittances remained a crucial source of external finance for developing countries in 2023, bolstering the current accounts of several countries grappling with food insecurity and debt issues. In 2023, remittances surpassed foreign direct investment (FDI) and official development assistance (ODA).
Looking ahead, remittances to LMICs are expected to grow at a faster rate of 2.3% in 2024, although this growth will be uneven across regions. Potential downside risks to these projections include weaker than expected economic growth in high-income migrant-hosting countries and volatility in oil prices and currency exchange rates.
“Migration and resulting remittances are essential drivers of economic and human development,” said Iffath Sharif, Global Director of the Social Protection and Jobs Global Practice at the World Bank. “Many countries are interested in managed migration in the face of global demographic imbalances and labor deficits on the one hand, and high levels of unemployment and skill gaps on the other. We are working on partnerships between countries sending and receiving migrants to facilitate training, especially for youth, to get the skills needed for better jobs and income at home and in destination countries.”
Trade deals: India exploring renewed negotiations with New Zealand, South Africa for new FTA deals (mint)
With a view to strengthen its economic ties and enhance its trade relationship with New Zealand and South Africa, India plans to soon start new free trade agreement (FTA) discussions with these nations, two officials aware of the matter told Mint. The strategic move is part of India’s broader effort to diversify its trade partnerships and reduce its dependency on traditional markets.
The scope of India’s trade ties with New Zealand and South Africa, which is a key constituent of the South African Customs Union (SACU), is huge as India already shares robust trade relationships with both the countries. A comprehensive FTA with these countries would further help India diversify its trade relationships and strengthen its position in the global economic order.
Experts emphasize the importance of direct engagement with South Africa to facilitate effective bilateral trade discussions. “As a crucial member of the Southern African Customs Union (SACU), direct negotiations with South Africa are essential for advancing towards a comprehensive trade agreement. Although initial talks with SACU began in 2005, progress has been inconsistent,” said Abhash Kumar, assistant professor-economics at University of Delhi. Therefore, prioritizing direct engagement with South Africa is essential to overcoming historical challenges and achieving substantial advancements in trade relations, he added.
Africa to tap into China’s tech expertise to drive industrialisation (ITWeb Africa)
Kevin Kariuki, group vice-president for Power, Energy, Climate, and Green Growth at the African Development Bank (ADB), believes that collaboration between Africa and China can advance sustainable development, alleviate energy poverty, and increase economic activity across the continent. Speaking at the bank’s annual meeting this week, Kariuki emphasised the importance of renewable energy in driving Africa’s industrialisation.
“Investing in Africa’s renewable energy infrastructure can enable China to help build large-scale solar farms, wind farms and hydroelectric plants. These investments can provide reliable and affordable energy, crucial for economic growth,” said Kariuki. The call for this alliance comes from Africa’s underutilisation of renewable energy resources.
According to the Africa Finance Corporation’s State of Africa’s Infrastructure Report 2024, the continent has barely utilized a fraction of its potential, with only 1% of solar, 5% of gas-to-power, 6% of geothermal, 7% of wind, and 11% of hydropower resources being used.
China-Africa infrastructure cooperation: Building the groundwork for a better future (Blueprint Newspapers)
From the plateau in the east to the coast in the west, from the landlocked countries in the sub-Saharan region to the small island states in the Western Indian Ocean, roads, railways, bridges, ports, schools, hospitals and power stations built with Chinese assistance repaving the groundwork for a better future for a land of promise and potential. It is a flagship Belt and Road cooperation project, and one of the two main lines of transport in the Outlook on Peace and Development in the Horn of Africa which China put forward in 2022 to support regional countries in addressing security, development and governance challenges.
BRICS to suspend admitting new members for a while (TASS)
BRICS nations have decided to “take a pause’ in terms of admitting new members, Russian Foreign Minister Sergey Lavrov said. “By the overwhelming majority, the ten nations decided to ‘take a pause’ with new members to ‘take in’ the new members who have doubled the association,” he said at a meeting with speaker of Belarus’ Council of the Republic, or upper house of parliament, Natalia Kochanova. “At the same time, we are working on categories of partner countries as stages ahead of a full-fledged membership,” Lavrov, who is on an official visit to Minsk, said.
Gender-related aid doubled over past decade, but equality remains a distant goal (UNCTAD)
Yearly gender-related Official Development Assistance (ODA) to developing countries doubled over the past decade, reaching nearly $52 billion in 2022. The 1% growth that year stood out against an overall 2% decrease in aid to these countries.Despite this progress, global gender equality remains a distant goal – 300 or so years away at the current rate. Halfway to the 2030 deadline, only two of the 14 indicators for the gender equality Sustainable Development Goal (SDG 5) on track. Bolder and more focused efforts are necessary.
UN Trade and Development (UNCTAD) estimates that an additional $360 billion per year is needed – equivalent to the size of economies like Colombia and Hong Kong, China. While aid alone can’t bridge this gap, it remains a crucial source for developing countries to address this funding shortfall.
DG Okonjo-Iweala: Aid for Trade is vital for developing economies to benefit from trade (WTO)
Trade offers up opportunities that developing economies can and should seize, said WTO Director-General Ngozi Okonjo-Iweala at the opening of the 9th Global Review of Aid for Trade on 26 June. Over two and a half days, government officials, heads of international organizations and trade practitioners will share insights on how to better integrate developing economies into global trade. The opening also saw the launch of “Aid for Trade at a Glance 2024”, a co-publication of the WTO and the OECD.
US$ 648 billion of funding helps to integrate developing economies into global trade (WTO Blog)
The WTO-led Aid for Trade initiative has contributed US$ 648 billion since 2006 to strengthen the export potential of developing economies and least-developed countries (LDCs). The impact of the initiative in improving these economies’ capacity to trade is revealed in a new publication — “Aid for Trade at a Glance 2024” — launched by the WTO and the Organisation for Economic Co-operation and Development (OECD)on 26 June.
Aid for Trade helps developing economies and LDCs to build more resilient, inclusive and sustainable economies through the transformative power of trade. It promotes the integration of developing economies, especially LDCs, into the multilateral trading system and aims to galvanize support to build supply-side capacity and trade-related infrastructure in these economies. However, greater efforts are required to help developing economies and LDCs to benefit from emerging trade opportunities from digital technologies and the green transition.
Aid for Trade disbursements and commitments surged in 2022, the latest year where data are available, surpassing pre-pandemic levels. Disbursements reached an all-time high of US$ 51.1 billion — a 14 per cent year-on-year increase in real terms. Commitments increased by 31 per cent to reach a peak of US$ 65 billion. Over 55 per cent of Aid for Trade is provided by bilateral donors, primarily countries that are members of the OECD Development Assistance Committee. Africa and Asia are the main geographical destinations of Aid for Trade, accounting for 70 per cent of total flows.
DG Okonjo-Iweala: More collaboration is needed to help Africa reap benefits of cotton trade (WTO)
At the 9th Global Review of Aid for Trade on 26 June, Director-General Ngozi Okonjo-Iweala welcomed progress made in the WTO-FIFA-led “Partenariat pour le Coton”, an initiative aimed at helping African countries move up the cotton value chain. Hailing the expansion of the multi-agency partnership and the completion of assessment studies, the DG emphasized the need for enhanced collaboration to help African cotton producers benefit more fully from cotton trade.
Quick links
African Development Bank Seeks Japan’s Support for Climate Action and Infrastructure Projects (AfDB)
Affordable, sustainable energy key to Africa’s economic and social development — IEA report (Daily Maverick)
Leveraging Power, Resilience of MSMEs to Accelerate Sustainable Development (ETV Bharat News)
Global Digital Economy Conference 2024: Strengthening ‘Five Major Platforms’ to Highlight July 2-5 Event (The Manila Times)
Green Building Revolution Could Open $1.8 Trillion Global Market Opportunity by 2030 (WEF)
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U.S.-Africa Trade Desk Secures $56 Million South African Table Grape Deal, Benefiting US Consumers and Boosting US-Africa Trade (Prosper Africa)
Prosper Africa is proud to announce the United States – Africa Trade Desk (USATD)’s first $56M trade deal for 700 containers (1,260,000 crates) of South African-grown table grapes to the U.S. The U.S.-Africa Trade Desk is a joint venture between Prosper Africa and Afritex Ventures, whose mandate is to bridge the gap between African agricultural suppliers and US buyers.
Signed at the Africa Pavilion at the Summer Fancy Foods Trade Show, this transaction will help US retailers keep product prices stable for U.S. consumers during the U.S. growing offseason, when commodity prices go up by 35%. The deal, financed with a structured trade facility by EAS Advisors and Scipion Capital, enhances value for African producers by providing firm off-take prices and removing market volatility.
Shipping will commence in the first week of November 2024 and continue through April 2025, filling the gaps of the US domestic growing season. USATD will facilitate the entire transaction, providing an end-to-end solution that bridges the gap between retailer needs in the U.S. and African production.
South Africa risks losing billions pledged for climate finance (Engineering News)
South Africa is risking a $9.3-billion climate finance pact by delaying the closing of a number of coal-fired power plants, a panel appointed by the country’s environment minister said. In an agreement known as the Just Energy Transition Partnership, South Africa won the bulk of the pledges from some of the world’s richest nations in loans, grants and guarantees in 2021. They offered to help the country reduce its dependence on coal for power generation on condition it phased out a number of its older plants using the dirtiest fuel.
The worst power cuts on record last year prompted Eskom, the State power utility, to delay shutting down the facilities. Eskom has said it has decided to postpone the decommissioning of three power plants — Grootvlei, Hendrina and Camden — until 2030.
South Africa picks a fight with its biggest trade partner (BusinessTech)
South Africa, the world’s second-biggest citrus exporter, has asked the World Trade Organization (WTO) to set up two panels to adjudicate disputes over its citrus fruit exports to the European Union. South Africa disagrees with EU measures taken against its exports to combat the incidence of Citrus Black Spot, a fungal disease, and the spread of the false codling moth, which damages the fruit. South Africa maintains that citrus black spots cause blemishes on the fruit skin, but they don’t affect the quality.
In response, the European Union said it regretted South Africa’s decision to pursue panel proceedings in the two cases but maintained that its pest control measures are entirely justified,” the WTO said in a statement on Monday.
Tanzania meat export surged significantly in 2023, Livestock ministry says (The East African)
Tanzania’s meat exports have seen a significant rise, jumping from 1,774.3 tonnes in 2022 to 14,701.2 tonnes in 2023, Minister of Livestock and Fisheries Abdallah Ulega said Monday.Ulega said the growth in meat exports attributed to the government’s efforts to revitalise the livestock sector, including a substantial increase in budget allocation for the sector, rising from Tsh32.1 billion (about $12.2 million) in the 2021/2022 fiscal year to Tsh112 billion shillings (about $42.6 million) in the 2023/2024 fiscal year.
Speaking at the launch of the World Bank’s The 21st Tanzania Economic Update Report in Dar es Salaam, which focuses on the livestock sector, Ulega said Tanzania’s development of critical infrastructures is important for enhancing the transportation of livestock and related products to both domestic and international markets.
Uganda, EAC trade deficit hits sh219b-report (New Vision)
During April 2024, Uganda traded at a deficit with the East African Community (EAC) amounting to $58.59m (about sh219b), a reduction from the $193.75m (sh724b) deficit recorded the previous month, the latest official figures show. This (reduction) was majorly on account of a significant decline in imports from Tanzania, which fell by $142.67m when compared with the previous month, the report on the performance of Uganda’s economy for May 2024 that was recently released by the ministry of finance said.
EAC Records Increase In Internet Connectivity, Mobile Money Services (Kenya News)
The East African region has witnessed remarkable advancements in network coverage, a surge in mobile and internet subscriptions, as well as notable growth in mobile money services.
These developments have been pivotal in driving socio-economic growth, fostering digital inclusion, and enhancing connectivity across East Africa.
Speaking during the unveiling of the 2023 statistics report on the telecommunications sector in the East African region during the 29th Annual Assemblies and Extraordinary Congress in Kenya, Dr. Ally Simba, Executive Secretary of the East Africa Communication Organisation (EACO), said the extent of coverage of basic mobile connectivity has been influenced by factors such as infrastructure, investment, and regulatory environments.
Simba said the mobile industry in East Africa is experiencing significant growth, with the average mobile penetration rate across the region reaching 100 per cent in 2023.
This growth outpaces both the average for the ITU Africa Region (92 per cent in 2023, up from 82 per cent in 2021) and the global average (111 per cent in 2023, up from 107 per cent in 2021).
Uganda should retaliate against Kenya’s persistent trade bans (Nilepost)
The decision by the Kenyan government to block Uganda’s milk again from accessing their market has drawn mixed reactions from analysts and economists. Some describe the decision as an internal political issue in Kenya while policy analyst Andrew Mwenda says it’s high time Uganda retaliated.
Uganda exports milk to the Egyptian market, United Arab Emirates, Japan, Ethiopia and Tanzania, among other countries, with the latest sealed deal being the Algerian market that is absorbing 1.4 billion liters of milk worth Shs1.8 trillion. Statistics indicate that dairy exports bounced back at Shs379.6 billion from Shs341.8 billion in the Financial Year 2022/2023.
Uganda’s dairy sector continues to count losses as the country’s largest export market for milk, Kenya, again blocked export. Consequently, Uganda risks losing over Shs10 billion. Mwenda believes it’s high time Uganda retaliated as Kenya’s internal political issues continue to hinder business among the two states.
Kalu decries trade imbalance between Nigeria, South Africa (The Nation)
Deputy speaker of the House of Representatives, Benjamin Kalu, has decried the growing trade imbalance between Nigeria and South Africa, saying Nigerian businesses need more support to measure up in the foreign land.
Kalu spoke at a meeting with a cross-section of the Nigerian Committee in South Africa, on the sidelines of the ongoing 3rd Ordinary Session of the 6th Parliament of the Pan-African Parliamentary (PAP) in Johannesburg, South Africa.
He said: “Our relationship with the Republic of South Africa is long-standing and multifaceted, encompassing both triumphs and challenges.
“Despite the significant volume of trade between Nigeria and South Africa –reaching US$2.9 billion in 2020 – there are still several grey areas that need our attention. Operational hurdles faced by Nigerian investors wanting to do business in South Africa, and issues concerning people-to-people relations remain major concerns.”
Highlights of the Country Brand Ranking 2024 (Bloom Consulting)
The latest edition of the Bloom Consulting Country Brand Ranking in Trade reveals dynamic shifts in the performance of Nation Brands globally. This year’s results are influenced by ongoing geopolitical events, digital identity’s increasing importance, and evolving global trade dynamics. Notably, these shifts in rankings will provide a perspective of comparison in future rankings considering the recent geopolitical unrest in key global trade routes.
So, who has climbed and who has dropped in this year’s Trade edition?
Despite Brexit, the United Kingdom (UK) held off the United States of America (USA) for a consecutive year, marking the second time that a country other than the USA holds the first position since the inception of the Bloom Consulting Country Brand Ranking. The UK maintained a high Net FDI and CBS Rating (AA), which compensated for the past decrease in D2 Digital Demand. Its multidimensional strategy keeps it at the forefront of the global economic stage.
In Africa, South Africa regains the top spot, driven by a surge in technology investment, while Burkina Faso and Senegal make impressive strides.
This year’s Bloom Consulting Country Brand Ranking Trade Edition underscores the evolving global economic landscape, where digital and physical metrics play crucial roles in shaping the performance and perception of Nation Brands.
SON quality policies may assist Nigeria tap into $35bn intra-Africa trade earnings per annum -Minister (Tribune Online)
MINISTER of Industry, Trade and Investment, Dr Doris Uzoka Anite, says the policies of the Standards Organisation of Nigeria (SON) will assist Nigeria and other African countries tap into the African Continental Free Trade Area (AfCFTA) agreement-stimulated $35 billion per annum intra-Africa trade earnings. Anite, while declaring open the 30th Assembly of African Organisation for Standardisation (ARSO), in Abuja, said development and implementation of standards, technical regulations, conformity assessment procedures, accreditation, metrology, capacity building and enforcement activities will boost intra-Africa trade, particularly trade in value-added production and commerce across all sectors in the continent.
She said, “I like to believe that the current standardisation activities at the national, regional and continental levels will require robust synergy and collaboration among African nations and ARSO member states to re-lubricate the implementation of the African Continental Free Trade Area (AfCFTA) agreement, especially with respect to enhancing a common regulatory framework in the context of TBT annex 6, article 5.
“Although only 35 of the 43 African nations that ratified AfCFTA agreement (piloted in six African nations of Kenya, Rwanda, Cameroon, Ghana, Tanzania, Mauritius, Tunisia and Egypt), all being ARSO members, they will largely benefit from AfCFTA strategies of reducing tariffs and non-tariff barriers among member nations.
Energy Prices Continue Rise, Fuel Transportation Costs Nationwide (This Day Live)
The prices of major fuels, including Premium Motor Spirit (PMS) or petrol, diesel, as well as gas continued to rise in May 2024, taking their tolls on transportation costs nationwide. Latest data from the National Bureau of Statistics (NBS) showed that the average retail price paid by consumers for petrol in May was N769.62, indicating a 223.21 per cent increase compared to the N238.11 recorded in May 2023. Likewise, comparing the average price value with the previous month, April 2024, the average retail price increased by 9.75 per cent from N701.24.
Ministry of Transport optimistic to increase agricultural exports through SATCP (Malawi Nyasa Times)
Ministry of transport and public works is optimistic that through Southern Africa Trade and Connectivity Project (SATCP), the country is going to open up trade by removing barriers to trade within Malawi and international market particularly using Nacala and Beira corridors as the country thrives to increase agricultural exports.
Deputy director in the department of policy and planning in the ministry of transport and public works Charles Mtonga said the project seeks to address barriers to trade arranging to physical barriers like infrastructure which includes roads and ports as well as non-tax barriers which include procedures and strategies that countries use to facilitate trade.
“As we open up the corridors we will make it bigger and better so as to increase flow of traffic. We have also to look at our exports production as we are working on making our corridors better, so in this project we have a sub-component which is looking at production using the SMEs as the project stipulates, so through the funding from World Bank in this project we are working in providing grants to the identified producers who are SMEs to produce more in increasing our value chain aiming at expanding our export base,” Mtonga said.
Trade: Morocco to simplify procedures for AfCFTA (APAnews - African Press Agency)
Morocco’s Customs and Indirect Tax Administration (ADII) has launched an initiative to dematerialise certificates of origin for exports to AfCFTA member countries, using the BADR system. The African Continental Free Trade Area (AfCFTA), a flagship initiative of the African Union (AU), aims to strengthen intra-African economic and political ties. By removing state protection on production, employment and consumer standards, free trade aims to create a single market for goods and services, thereby facilitating trade between African countries.
The dematerialisation of certificates of origin is part of Morocco’s drive to modernise and integrate its economy into this vast free trade area. The BADR system now enables applications for certificates of origin to be made at the time of export declaration, incorporating specific functions for entering information in line with the AfCFTA
This step forward will simplify export procedures, improve the traceability of trade and harmonise commercial practices at continental level. Morocco is thus demonstrating its serious commitment to greater regional integration, with the hope of seeing intra-African trade multiply and intensify.
Equatorial Guinea: New Report Proposes a Way Forward to Develop a Safe and Inclusive Digital Economy (World Bank)
In the wake of new challenges and its prolonged oil-dependency, Equatorial Guinea’s government is aiming for economic diversification as a key course of action for growth and stability. The adoption of digital technologies has the potential to increase the productivity of Small and Medium-sized Enterprises (SMEs) and stimulate innovation, increasing productivity, and create high-skilled jobs in Equatorial Guinea. Digital transformation could therefore play a critical role in diversifying Equatorial Guinea’s economy in the upcoming years.
The Digital Economy Country Diagnostic for Equatorial Guinea, developed by the World Bank and the Government of Equatorial Guinea and supported by the Digital Development Partnership (DDP), notes that, while many Sub-Saharan African countries are undertaking digital transformations, Equatorial Guinea must step up its efforts to capture a larger share of the dividends of the digital economy. The report focuses on challenges and opportunities facing Equatorial Guinea along the five foundations of the digital economy: digital infrastructure, digital public platforms, digital financial services, digital businesses, and digital skills.
“Looking at the size of Equatorial Guinea’s economy, digital marketplace platforms can help firms to expand and access other markets, which could be especially important to stimulate the development of the private sector in the country,” said Aissatou Diallo, Resident Representative for Equatorial Guinea.
Beac Urges Swift Rehabilitation of Sonara to Protect Cemac’s Foreign Reserves (Business in Cameroon)
The Governor of the Bank of Central African States (Beac), Yvon Sana Bangui, urged Cameroonian authorities to speed up the rehabilitation of the country’s oil refinery, Sonara. Speaking at a press conference after the second ordinary session of Beac’s Monetary Policy Committee (CPM) for 2024, Bangui emphasized the need to restore Sonara quickly.
Since a fire destroyed the refinery in May 2019, Cameroon has been importing all its finished petroleum products, including gasoline, diesel, kerosene, and some domestic gas. This has weakened Cemac’s foreign exchange reserves, he explained. “Today, all countries in the sub-region import finished petroleum products. This weakens our external position,” Bangui warned.
Beac projects that Cemac’s reserves will reach CFA7,285 billion by the end of 2024, covering 4.79 months of imports. Cameroon, the economic engine of Cemac, has been contributing 70-80% of these reserves. The massive importation of finished petroleum products since the Sonara fire has eroded these shared reserves. This prompted Bangui’s call for a rapid rehabilitation of Sonara to restart crude oil refining and reduce the need for importing finished petroleum products, thereby preserving foreign exchange reserves.
The Southern African Development Community (SADC) will hold the 24th virtual meeting of the Ministerial Task Force (MTF) and the 34th Committee of Ministers of Trade (CMT). These significant meetings will be chaired by His Excellency Mr. Rui Miguêns de Oliveira, Minister of Industry and Commerce of the Republic of Angola.
During the meetings, the Ministers receive a comprehensive update on the implementation of the SADC Industrialisation Strategy and Roadmap (2015-2063). The update will cover the Strategy’s pillars of Industrialisation, Competitiveness, Regional Integration, and Cross-Cutting issues. Additionally, the meetings will address the implementation and consolidation of the SADC Free Trade Area (FTA) focusing mainly on Angola’s accession to the Protocol on Trade, the Democratic Republic of Congo (DRC) accession to the Protocol on Trade, and tariff liberalization.
The Ministers will discuss the Draft Annex on Safeguard Measures and the Draft Amendment and Implementation Modalities of Annex VII.
In the area of customs, the Ministers will discuss the alignment of the SADC Protocol on Trade with selected measures from the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA), amendments to SADC Rules of Origin, and the alignment of Appendix I of Annex I of the Protocol on Trade related to Rules of Origin with the World Customs Organisation (WCO) Harmonized System 2022. On a related matter, the Ministers will deliberate on the implementation of the SADC Regional Authorized Economic Operators’ (AEOs) Framework, the SADC Regional Customs to Business Framework, and the SADC E-Certificate of Origin (eCoO). Progress on the harmonization of customs procedures, processes, and documentation will also be reviewed, along with the development of the SADC Rules of Origin Verification Guidelines for the implementation of Annex I of the Protocol on Trade (Rules of Origin) Framework.
The meeting schedule is as follows: Senior Officials-CMT will meet on 24 June 2024, followed by the Senior Officials-MTF on 25 June 2024. On the morning of 27 June 2024, the Committee of Ministers of Trade will convene, and in the afternoon, the Ministerial Task Force will hold its session.
Inaugural COMESA Week to Publicise Regional Programmes Launched in Madagascar (COMESA)
The inaugural COMESA Week aimed at raising public awareness on various regional integration programmes being implemented by the 21-member bloc has kicked off today Monday 24 June in Madagascar. This also marks the launch of activities to commemorate the organisation’s 30th anniversary later this year.
The COMESA Week features a mini expo that has attracted small scale entrepreneurs, a media sensitization forum on regional integration was held, while a multi-stakeholders’ dialogue focusing on women and the youth and an engagement with students at the University of Antananarivo are planned for the week. The climax of the activities will be the 5th COMESA Federation of Women in Business (COMFWB) Trade Fair and Business Conference on 28 & 29 June 2024 which will bring together national chapters of the COMFWB from COMESA Member States and women entrepreneurs from Madagascar and across the region. Various international and local corporates have come together to support these events.
Creating an Intra-African Tourism Map is Essential for Sustainable Economic Development (The Namibian)
It is no secret that Africa is a diverse continent with a rich cultural heritage waiting to be explored. Through this, tourists have a chance to experience Africa’s traditions, languages, cuisine and tapestry, not forgetting its most sought after natural landscapes, as well as flora and fauna. For Africa to fully benefit from its tourism wealth, a significant opportunity lies in the economic benefits which intra-Africa tourism presents.
The Namibian Tourism Satellite Account Report revealed that during 2022 the gross value added for the tourism industries in Namibia was estimated at 6,9%. With a total national gross domestic product of N$206,2 billion in 2022, N$14,3 billion was contributed by the tourism sector. As a fast growing economic sector, African states should embrace and understand the economic impacts and prospects of independent and thriving tourism industries.
Intra-African tourism has the potential to reduce the continent’s reliance on international tourism, as witnessed during the Covid-19 pandemic. The decline in African tourism activity, which was outwardly held together by international travellers, is proof that by promoting travel within Africa, countries can diversify their tourism markets. This also reduces their vulnerability to external factors, such as global economic downturns or travel restrictions.
African Group to table plans to revamp WTO rules for green industrialisation (The New Times)
Last week, the African Group at the World Trade Organization (WTO) again asked for changes to the WTO’s rules, saying they want the rules to be fairer for developing countries, especially when it comes to things like government support for green businesses (like solar or wind power) and attracting investments in clean technologies. They believe the current WTO rules make it harder for the developing countries, especially those in Africa to grow their economies in an environmentally friendly way.
The group made the call at the June 19, meeting of the WTO Committee on Trade and Environment in Geneva where the trade rules body has its headquarters, according to a Geneva-based trade official. The group, which first flagged this proposal at the General Council meeting last month, said it will present a work plan in July.
China catches up with EU’s exports to Africa, but imports far less (The Corner)
The European Union has a historically strong economic relationship with Africa, but its dominant position has gradually been challenged by the rise of China, especially as a key exporter to Africa. In 1995, China’s exports to Africa were only $1.8 billion, significantly lower than the EU’s exports of $45 billion. However, after nearly thirty years’ of increasing its manufacturing capacity, China’s exports to Africa reached $164 billion in 2022, only 12% lower than the EU’s $187 billion.
Conversely, the importance of the EU and China as markets for African exports varies significantly. So far, the EU remains the leading market for Africa, while Chinese imports have been growing at a slower pace. Despite much higher GDP growth than the EU, China’s imports from Africa amounted to only $118 billion in 2022, whereas the EU has sustained its imports from Africa, which further increased to $247 billion in 2022. Consequently, China held a substantial trade surplus of $40 billion with Africa in 2022, whereas the EU had a trade deficit of $61 billion with Africa.
See also: Why strong regional value chains will be vital to the next chapter of China and Africa’s economic relationship (CNBC Africa)
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South Africa seeks panel reviews of EU measures affecting imports of citrus fruit (WTO)
South Africa has requested the establishment of two dispute panels to review European Union measures affecting the import of South African citrus fruit into the EU. The measures in question concern import restrictions imposed by the EU to control spread of the insect Thaumatotibia leucotreta, or False Codling Moth, and the fungus P. citricarpa, known as “citrus black spot.” Consultations with the EU aimed at resolving the dispute took place but did not resolve in a mutually agreed solution. The request was considered at a meeting of the Dispute Settlement Body (DSB) on 24 June. This is the first time that South Africa has requested the establishment of a panel under the WTO’s dispute settlement system.
South Africa said that in both cases, the EU measures were not based on scientific principles, are maintained without sufficient scientific evidence, and are more trade-restrictive than necessary to achieve the EU’s appropriate level of protection. South Africa also said the EU failed to account for regional differences with regards to pest risk in the application of the measures. The measures are having a severe impact on South Africa’s citrus exports, which provide jobs to more than 140,000 people in the country, it added. Moreover, the measures affect other countries in the region that depend on South Africa’s infrastructure for their citrus fruit exports.
TNPA Appoints Grindrod SA As The Preferred Bidder For Port Of Richards Bay Container Handling Facility (Railways Africa)
Transnet National Ports Authority (TNPA) has appointed Grindrod South Africa (Pty) Ltd (Grindrod SA) as the Preferred Bidder to develop and operate a container handling facility at the Port of Richards Bay, as part of plans to drive improved port efficiency and service levels. This development will enable an increase in the port’s container handling capacity from 50,000 twenty-foot equivalent units (TEUs) to 200,000 TEUs per annum, in alignment with the TNPA KZN ports master plan.
The strategic location of the proposed container handling facility at Richards Bay Port will serve the northern parts of KwaZulu-Natal province effectively, providing vital proximity to the hinterland market. This positioning is anticipated to lower logistics costs and reduce transportation lead times, benefiting both local and regional economies.
No respite for coffee lovers as higher global prices stoke local inflation in SA (ZAWYA)
According to Statistics South Africa, South Africa’s consumers breathed a sigh of relief as headline inflation steadied to 5.2% year-on-year in May 2024. Food inflation, however, decelerated further to 4.3% year-on-year in May 2024 from 4.4% in April 2024 underpinned by declines in bread and cereals, milk, eggs and cheese, oils and fats, and sugar, sweets, and desserts prices. However, drilling deeper into the data shows a continued stickiness on the upside for coffee products.
Instant coffee (250g) rose by 2.1% month-on-month and was sharply higher by 30.6% year-on-year at R63.28. After posting marginal monthly gains in the prior two months, ground coffee or coffee beans (250g) strongly rebounded 4.9% month-on-month at R105.30 in May 2024 which is 12.7% higher year-on-year relative to 6.8% year-on-year in April.
Uganda Coffee Report: Production, Trade and Consumption All Rising (Daily Coffee News by Roast Magazine)
Uganda’s coffee production and exports are expected to rise in 2024/25, thanks to favorable crop conditions, targeted interventions to combat pest and disease, and the maturation of young plants. Uganda’s green coffee exports are expected to rise slightly from 6.52 million to 6.58 million bags in 2024/25, driven by higher production. The EU, United States, Morocco and India remain Uganda’s main coffee export destinations. These and other predictions are outlined in the new USDA Foreign Agriculture Service annual report on the Uganda coffee sector.
To comply with the new EU deforestation-free products law (EUDR), the Ugandan government is planning to register all coffee farmers and establish a national traceability system, according to the report. The government is also negotiating a “Territorial Approach” to traceability as an interim measure.
Africa states turn to information exchange to boost tax revenues (The East African)
Amid increasing fiscal pressures and debt sustainability in African countries, governments are now making use of exchange of information agreements available to them more than ever. Last year, the amount of tax revenue raised by countries on the continent from exchange on information (EOI) requests increased steeply from $71.5 million in 2022 to hit $2.3 billion, the highest level in over 10 years, according to the Tax Transparency in Africa Report 2024 published by the Africa Initiative last week. This was a result of increased use of EOI and automatic exchange of information (AEOI) between countries to net tax cheats stashing money and other assets in offshore accounts to evade taxes in their home countries.
Exchange of information requests are appeals by a country’s tax authority to another country for disclosure of data on the financial accounts, assets held or income earned by their citizens in foreign countries. Traditionally, African countries have utilised the avenues available for such EOI arrangements much less that others. The requests Africa has received over the years has been significantly larger than those they sent, highlighting their slow adoption of the agreements.
How Mombasa beat Djibouti, Dar in new World Bank port ranking (The East African)
Mombasa port bypassed its main Eastern African competitors, Djibouti and Dar es Salaam, in the latest World Bank global ports index over ship delays and non-tariff barriers. According to the newly released Container Port Performance Index (CPPI) 2023, increasing business bottlenecks in the Djibouti port, a facility touted as the region’s maritime hub, resulted in a drastic drop from position 26 in 2022 to 379 in 2023.The port of Dar es Salaam dropped 55 places from 312 to 367, blamed on inefficiencies.
This year, Ethiopia, the most populous country in the region, cited increasing insecurity in the Red Sea and Non-Tariff Barriers (NTBs) in the Djibouti port as some of the factors that led Addis to intensify its quest to have an alternative corridor for its imports and exports, with the country looking to the Lamu port.
Uganda, Tanzania fresh produce volume via Mombasa on the rise (The East African)
The volume of fresh produce from Tanzania and Uganda exported using reefers through the port of Mombasa, Kenya has increased to six percent, compared to last year. The Mombasa port recorded 6,813 20-foot equivalent units (Teus), helped by the installation of 1,367 reefer plugging points in its port facilities since last year. Reefers are refrigerated containers.
The $380 million Business Environment and Export Enhancement Programme, implemented by TradeMark Africa to push for radical decarbonisation of value chains that deliver fresh produce is yielding fruit, with more traders preferring sea to air in transporting fresh produce. Consumers, especially in Europe, have been on the frontline in this push. Currently, perishable goods approvals through the Mombasa port are done at the point of loading, and permit approvals are granted by the KenTrade-operated National Electronic Single Window System.
EU-Nigeria Business Forum To Promote Bilateral Trade, Investment Stability (Leadership)
The Nigerian and European business leaders, policy makers and institutional stakeholders will converge on Abuja on July 2 to identify and explore investment opportunities along specific value chains during the 9th European Union-Nigeria Business Forum. The Forum is being organised by the EU Delegation to Nigeria and ECOWAS, in close coordination with EU member states and the Federal Ministry of Industry, Trade and Investment. It will be organised under the theme “Investing in jobs and a sustainable future,” at Abuja’s Continental Hotel.
EU Ambassador to Nigeria and ECOWAS, Samuela Isopi said: “It is important to note that for the first time since its inception, the 2024 edition of the EU-Nigeria Business Forum will be held in Abuja. This will provide an opportunity for the EU, its Member States and the private sector from Europe and Nigeria to engage the new administration on their investment agendas in a transparent and inclusive manner, with a view to fostering confidence and commitment to a stronger and sustainable partnership.”
Commerce Chamber Raises Concern Over Incessant Increase In Foodstuffs Prices (Leadership)
The Abuja Chamber of Commerce and Industry (ACCI) expresses deep concern over the persistent rise in commodity prices, which is adversely affecting small-scale business owners and escalating poverty levels in the country. The surge in prices of essential food items such as rice, beans, cassava flour, tomatoes, pepper, onions, and others has aggravated the plight of the average citizen, rendering basic meals increasingly unaffordable for many households
Official records from the National Bureau of Statistics (NBS) indicate a staggering 35.41 per cent food inflation rate in May 2024. However, on-ground observations suggest that the true food inflation rate exceeds 50 percent, highlighting the severity of the situation and its dire impact on livelihoods. Experts attribute this economic hardship to the drastic depreciation of the national currency, the naira, which has significantly eroded citizens’ purchasing power. The resulting exchange rate volatility has disrupted businesses, increased production costs, and thwarted projections for economic growth.
‘Trade Modernisation Project Will Increase Customs’ Revenue’ (Leadership)
The President, Nigerian Association of Master Mariners, Capt. Tajudeen Alao, yesterday, said the federal government’s Trade Modernisation Project (TMP) will stimulate quicker cargo clearance at the nation’s seaports and airports. Alao who stated this in Lagos noted that the establishment of the project would also boost Internally Generated Revenue (IGR) and enhance the country’s global visibility. He observed that the world had moved beyond conventional methods of doing business with the advancement of technology.
He continued, “Consider the time when we had to carry files around; now everything is done through ICT. Nigeria must modernise, and I am glad this initiative is underway. The master mariner emphasised that "without trade, growth is impossible and that creating an atmosphere conducive for trade, is essential to reap its benefits.”
Somalia moves closer to enjoying perks of joining EAC (The East African)
Somalia held a consultative road map meeting last week, which would see its legal structures aligned to those of the East African Community (EAC) to enable it to benefit from the regional bloc. The one-week meeting, attended by EAC partner state delegates, was aimed at developing a comprehensive roadmap for Somalia’s integration into the EAC, marking a significant step towards bolstering regional cooperation and economic integration.
In the meeting held in Nairobi from June 17 to 20 and chaired by South Sudan’s Under-secretary in the Ministry of East African Affairs Beny Gideon Mabor, Somalia was taken through the four pillars of the EAC, to enable it to align them with its constitution and national laws. The EAC is made up of four pillars, Customs Union, Common Market, Monetary Union and Political Federation.
The roadmap outlines essential activities categorised into national and Community-oriented initiatives. These include aligning Somalia’s legal framework with established regional standards that would ensure its participation in EAC programmes and activities. Once Somalia is fully integrated into the EAC, it will enjoy free movement of goods and persons within the region. Its goods will no longer attract duty within the EAC, among other benefits.
Ethiopia Customs sharpens 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 the Ethiopia Customs Commission (ECC), held a national advanced training workshop on rules of origin for Ethiopia Customs and the Ethiopian Chamber of Commerce and Sectoral Association. The workshop was held in Addis Ababa, Ethiopia, from 17 to 21 June 2024 with the objective to assist ECC 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 Ethiopia. Participants also had the opportunity to observe the practical application and management of rules of origin through a field visits to a producer of originating textile products and to discuss how ECC can further facilitate trade for economic operators trading under preferential trade agreements.
EAC States on a joint roadmap to foster digital transformation as EACO Congress kicks off in Nairobi (Financial Fortune Media)
The EAC member States have been urged to speak in one language if the quest to achieve a Cross-sectoral EAC Regional Digital agenda is to be fully attained. Digital transformation remains a top priority for the EAC bloc, but to succeed, member States will have to focus on two elements; affordability (of digital services and processes) and access. This was the resounding plea at this year’s 29th Annual Assemblies and the EACO Extraordinary Congress taking place in Nairobi.
The week-long convention is expected to provide the EAC member states with an opportunity to reflect on our individual and collective efforts to leverage the power of digital transformation to grow our economies. By aligning the EAC around a shared vision for digital transformation and establishing a Shared Services Platform, the member states will in the next week seek to overcome the issue of fragmented systems and redundant investments within each Partner State, enabling harmonized, efficient, and scalable ubiquitous digital services across the region.
COMESA Investment Forum (CIF 2024)
The COMESA Regional Investment Agency (RIA), will inaugurate the COMESA Investment Forum (CIF 2024) on 27th June, in Tunis, Tunisia. This highlevel forum offers participants an unparalleled platform for promoting trade and investment within the COMESA region. This year’s edition takes place against an important backdrop with Tunisia, having joined COMESA in July 2018, offering a strategic gateway to the region’s extensive market. The theme for this year, “Unleashing Potential: Cross-Border Trade and Investments,” reflects the need for policymakers and the private sector to collaborate more closely and take decisive actions to advance and fast-track development across the region through enhancing cross border investment and trade flows.
CIF 2024 aims to spotlight the diverse business opportunities across COMESA Member States, encouraging cross-border trade and investments. It fosters an environment where business leaders from the region can explore and seize these opportunities.
Speaking about the forum, Heba Salama, CEO, COMESA Regional Investment Agency, is looking forward to welcoming the Tunisian business community to CIF 2024: “With its 21 member states, COMESA is at the forefront of promoting economic unity across Africa. I would like to encourage both our COMESA Investment Promotion Agencies and leading investors and businesses from Tunisia to discuss and explore joint trade and investment transactions. We are committed to working closely with business leaders and investors to foster robust economic growth and regional cooperation.”
Global coffee production to rise by 7 million bags in the new crop, says USDA (Th Economic Times)
Coffee production in the world is projected to increase by 7 million bags, or 4.1%, in the new crop that in most countries starts in October, the United States Agriculture Department (USDA) said on Thursday in a biannual report. The USDA said total production of the beans will rise to 176.23 million 60-kg bags from 169.18 million bags previously, mostly due to higher output in top grower Brazil and to a recovery in robusta grower Indonesia after last year’s dismal crop that was hit by the El Nino climate pattern.
Consumption was projected up 3.1 million bags to 170.6 million bags, the department said, adding that exports from producing countries to non-producing ones are expected to rise by 3.6 million bags to 123.1 million bags.
Beyond competition: How Europe can harness the UAE’s energy ambitions in Africa (ECFR)
Since 2020, the UAE has strategically expanded its involvement in Africa, marking a significant shift in its foreign policy and becoming an influential middle power on the continent. The monarchy has focused particularly on Africa’s energy sectors, increasing its stakes in oil and gas, renewables, and in critical minerals. This is driven by its ambition to become a global leader in the energy transition and backed by its substantial logistical and financial resources. This growing engagement presents challenges for Europe, as the UAE captures market shares and promotes a green transition model that resonates more with African countries’ needs and ideology.
However, Europe shares some common goals with the UAE and Africa, such as expanding renewable energy and increasing Africa’s access to energy. European countries should pursue a strategy of “co-opetition” towards the UAE, balancing competition in areas in which they have comparative advantages with cooperation in areas of mutual interest. By cooperating with the UAE, the EU could help fast-track the implementation of green initiatives in Africa and promote pragmatic solutions for the energy transition, possibly also improving its appeal as an inclusive partner in the global south.
How China-Africa collaboration will catalyse agricultural productivity (The Guardian Nigeria)
The Executive Director, National Root Crops Research Institute (NRCRI), Umudike, Abia State, Prof Chiedozie Egesi, says leveraging on technological advancements and fostering collaborative research between China and Africa would act as catalyst towards enhancing agricultural productivity and sustainability across the Global South.
He disclosed this during the workshop on China-Africa Agricultural Science and Technology (S&T) Cooperation Through South-South and Triangular Cooperation Mechanism Agenda, held in Sanya Hainan, China. Prof. Egesi recommended several measures to boost agricultural productivity and sustainability, which include capacity-building, joint research initiatives, infrastructure development, policy support and private sector engagement.
Thailand’s pursuit of BRICS membership (ORF)
In May 2024, Thailand officially submitted its application to join BRICS, positioning itself as the first Southeast Asian nation to do so. The Thai cabinet approved the draft of the official letter indicating the country’s intent to become a member, reflecting Thailand’s strategic ambition to boost economic growth and competitiveness on the global stage, diversify international partnerships, and elevate geopolitical influence.
Currently, BRICS countries collectively account for 22.8 percent of Thailand’s total trade. China stands out as Thailand’s largest trading partner among the BRICS nations, with trade reaching US$175 billion in 2023. Membership in BRICS could enhance this figure by providing access to new markets and reducing financial risks through diversified investments. Furthermore, Thailand could see an increase in foreign direct investment (FDI), especially from China and Russia, who are keen to strengthen their economic ties with the Southeast Asian markets.
Quick links
Ambidexterity for Africa – empowering African businesses for global competitiveness (The Business & Financial Times)
G20 Discusses Global Anti-Corruption and Public Integrity Agenda (G20 Brasil 2024)
Leading Academics Urge UN to Extend, Reframe SDGs (Sustainable Brands)
Global supply chains at risk without new rules for digital trade (East Asia Forum)
Global survey reveals ‘truly astonishing’ consensus for stronger climate action (UN News)
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Streamlined PPP framework could unlock infrastructure investment (Engineering News)
In February, the National Treasury asked for public comments to be submitted in respect of the newly drafted amendments to the National Treasury Regulations (NTR) 16, and key elements of municipal public-private partnerships (PPPs) legislation, to bring it in line with recommendations based on a complete review of the PPP framework.
“The National Treasury has received a substantial number of comments. The process of reviewing the comments received from the public- and private-sector stakeholders is in progress,” a National Treasury spokesperson says, adding that the in-house process to address the comments has to receive legal approval to ensure that due procedure has been followed in addressing the comments. This could lead to potential delays.
“There is a compelling case to use PPPs, considering the challenges faced by the South African fiscus. Unfortunately, there has been a decline in the procurement of services through PPPs in South Africa recently, and the State is eager to reignite private-sector investment in PPPs to accelerate infrastructure development while applying capital to other pressing needs of the State like healthcare, social welfare [and] education,” law firm White and Case says.
China’s Tsingshan $1bn steel plant in Zimbabwe starts production (Engineering News)
China’s nickel giant Tsingshan Holding Group has started production at its $1-billion steel plant in central Zimbabwe, a company official said on Thursday. Tsingshan’s Dinson Iron and Steel Company will produce 600 000 metric tons of carbon steel annually during the first phase of its operations, project director Wilfred Motsi told reporters during a tour of the plant. “We have started to produce pig iron, which is a raw material used for the production of steel. By July, that’s when we will start to produce the actual carbon steel,” Motsi said. He did not say how long the first phase would last.
Uganda signs deal with UAE to build new international airport (The East African)
Uganda has signed a pact with a business association from the United Arab Emirates to build a new international airport, President Yoweri Museveni’s office said on Friday. The deal for the country’s third such airport expands the UAE’s economic footprint beyond its interests in the renewable energy and oil and gas industries.
The main airport is Entebbe, on the northern shores of Lake Victoria, in central Uganda. Kabalega International Airport in the oil-rich Hoima District in western Uganda is under construction. The UAE’s Sharjah Chamber of Commerce and Industry will build the airport just outside the Kidepo National Park in the northeast near Uganda’s border with Kenya, Museveni’s office said in a statement, without giving the cost. Construction will start in August, said Abdallah Sultan Al Owais, chairman of the Sharjah business body.
Formal financial inclusion in Rwanda grew 39% in 2020-2024 (The New Times)
The number of Rwandans who have access to formal financial services and products increased by more than 38.8 per cent to 7.5 million between 2020 and 2024, a new report published by Access to Finance Rwanda (AFR) on June 20, found. That implies that 92 per cent of Rwandans have access to formal financial services, which the report describes as services offered by institutions that are governed by a legal precedent of any kind.
Those services are offered by banks, mobile money operators, insurance and pension companies, microfinance institutions, Saving and Credit Cooperative Societies (SACCOs), as well as regulated non-deposit taking financial institutions. The increase in access to formal financial services was driven mainly by mobile money, insurance, and pension.
IMF approves over $900m to support Tanzania budget, climate change fight (The East African)
The IMF said on Thursday its executive board approved funding for Tanzania of $786.2 million to help tackle climate change while also completing a separate review allowing for the disbursement of $149.4 million for budget support. Tanzanian authorities are committed to continue implementing reforms to preserve macro-financial stability, strengthen economic recovery, and promote sustainable and inclusive growth, the International Monetary Fund said in a statement.
In the last three years, President Samia Suluhu Hassan’s administration has undertaken various economic reforms with ambitions to return the country’s economic growth to the pre-pandemic real gross domestic product growth rate of six percent to seven percent. Tanzania’s economic reform programme remained strong, the IMF said, adding that economic growth rebounded in 2023 after slowing down in 2022. Tanzania’s economy, which relies on tourism, mining, agriculture and manufacturing, has remained resilient in the face of back-to-back extreme weather events and climate change, driven by a surge in the services sector, according to the World Bank.
The Ministry of Commerce, Trade, and Industry (MCTI), in collaboration with the United Nations Economic Commission for Africa Sub-Regional Office for Southern Africa (ECA SRO-SA) organized a workshop to review the outcomes of the mid-term review of the implementation of Zambia’s National Industrial Policy (2018-2027) and to validate the Implementation Plan for the National Industrial Policy (2024-2027). The review ascertained the extent to which the policy has been deployed, identified successes, challenges and how these can inform the calibration of the implementation plan for the remainder of the life of the policy.
The remarks by ECA SRO-SA were delivered by Ms. Olayinka Bandele, Chief, Inclusive Industrialization on behalf of the Director, Ms. Eunice Kamwendo. She emphasised the importance of industrialisation in diversifying the country’s economic base; create jobs and address youth unemployment; reduce poverty and inequality; facilitate green transitions and strengthen food systems and noted that, “The vision is to transform Zambia and promote industrial development agenda focused on growth, diversification, upgrading of industrial capacity, and enhancing competitiveness of the nation’s manufacturing sector, as well as the promotion of quality infrastructure to support industrialization was imperative”. She underscored that review was critical as it allowed for adjustment of the new plan to implement the policy to accommodate other emerging issues including the AfCFTA and green industrialization.
EU begins dispute settlement proceedings against Algeria to defend European companies (European Commission)
On 14 June 2024, the EU has launched a dispute settlement case against Algeria and requested consultations with Algerian authorities to address several restrictions imposed on EU exports and investments. The EU considers that, by imposing these trade restrictive measures since 2021, Algeria is not respecting its trade liberalisation commitments under the EU-Algeria Association Agreement.
The EU’s aim is to engage constructively with Algeria with a view to removing the restrictions on several market sectors, spanning from agricultural products to motor vehicles. These include an import licensing system with the effects of an import ban, subsidies contingent on the use of local inputs for car manufacturers, and a cap on foreign ownership for companies importing goods in Algeria.
In light of unsuccessful efforts to resolve the matter amicably, the EU has taken this step to preserve the rights of EU exporters and EU companies operating in Algeria who are adversely affected. The Algerian measures also harm Algerian consumers, due to an unduly restricted choice of products.
Ethiopia Working to Combat Deforestation, Degradation & Climate Change through Various Intiatives (ENA)
The Government of Ethiopia is working on landscape restoration through various initiatives to combat deforestation, degradation and climate change, Ethiopian Forestry Development Director-General Kebede Yimam said today. The nation has also developed policies, strategies and plans to protect foresters, he stated, recalling the Green Legacy Initiative as one of government efforts to combat environmental degradation, deforestation, and climate change.
Therefore, the director-general stressed that it’s important to work in collaboration with various stakeholders for effective land management and restoration in a research based and holistic manner. Kebede made the remark at a workshop on disseminating research findings and policy implications of landscape approach and climate-smart agriculture.
The primary goal of the workshop organized by International Water Management Institute (IWMI) is to promote policy actions for eco-regional and landscape development approaches and climate-smart agriculture and to share important research findings in order to hasten Ethiopia’s transformation to a sustainable food system.
African Development Bank, WFP project boosts wheat production in war-torn Sudan amid soaring hunger (AfDB)
An emergency wheat production project in Sudan financed by the African Development Bank and executed by the United Nations World Food Programme (WFP) has increased wheat production in the country by up to 70% in targeted project locations across five states within the past year. The African Development Bank provided a total of $75 million to WFP for the implementation of the Sudan Emergency Wheat Production Project over the course of two years.
“This development comes at a critical time for Sudan, which is facing a looming hunger catastrophe due to the ongoing conflict, that has slowed down production in the past agricultural season,” Nnenna Nwabufo, the Bank’s Director General for Eastern Africa region said. “Given the great potential that agriculture offers even under circumstances of active conflict, and with famine in Sudan on the horizon, threatening millions of lives, this project has brought a lot of hope.”
73 per cent of Mozambican population does not have access to internet (Club of Mozambique)
The Minister of Transport and Communications, Mateus Magala, announced on Wednesday that around 73% of the Mozambican population does not have access to Internet services. Speaking in Maputo, at the launch of the VaMoz Digital project, Magala said: “We are challenged to change the paradigm, identifying innovative, environmentally friendly solutions that rely on the active involvement of the private sector to provide Internet to all.”
“We cannot conduct digital transformation without highly trained technicians in Cybersecurity, artificial intelligence, robotics, 5th generation networks, just to name a few”, he said. The government expects the technical team implementing VaMoz Digital to present concrete proposals for legal reform and new negotiation models in the field of the digital economy, spectrum sharing, infrastructure and incentives for rural coverage of Internet services.
Bridging Progress: African Development Bank powers The Gambia’s leap into the future (AfDB)
The African Development Bank’s investments in The Gambia’s energy sector have significantly improved access to affordable and reliable electricity, with at least 70% of Gambians projected to have power by the end of 2024 (50% in rural areas), according to a recent Bank country progress report. Notable projects include an interconnection with Senegal, which provides 50 megawatts of power to augment the Gambia’s bulk supply system. The report, approved by the Bank Group’s Board on 13 June 2024, reflects results obtained halfway through the execution of the Bank’s 2021-2025 Country Strategy Paper (CSP) for the Gambia. It highlights remarkable achievements in the country’s energy, agriculture, and transport sectors.
‘SADC must make use of bilateral or multilateral agreements’ (The Standard)
Industry and Commerce minister Nqobizitha Ndlovu says Sadc must us bilateral or multilateral agreements to strengthen cross-border value chains, amid a political tiff between Zimbabwe and Zambia. The minister made the remarks in recognition of the forthcoming Sadc Industrialisation Week.
Speaking in the meeting with Sadc ambassadors ahead of the scheduled ‘Sadc Industrialisation Week’ slated to run from July 28 to August 2, Ndlovu said the region needed to come up with strategies that supported the livelihoods of its people. Hence, he said, there was a need to be innovative and promote industrialisation of the region through infrastructural development and trade.
“Realising the importance of moving together as we approach our Sadc Industrialisation Week, which we look forward to and hope that it will be a success for our economies as a region,” Ndlovu said in the meeting in Harare on Wednesday this week. “As the governments of Sadc, we saw it important and befitting that we continue to discuss around how we industrialise our region, how we grow our economies so that we create employment so that we improve the standards of living of our people,” he said.
Push to increase traffic volumes on subcontinent a priority for new rail body (IOL)
Increasing the railway network traffic of the subcontinent will be among the key priorities of the new Southern African Railway Association (Sara). This was revealed at a media briefing at The Capital Hotel in Cape Town on Thursday where Hishaam Emeran, the Passenger Rail Agency of South Africa (Prasa) CEO, was elected as the new Sara president. Sara is the association of railway companies in the Southern African Development Community (SADC).
“Rail transport is crucial for rebuilding our economies. As the board we had a meeting and agreed there is a need to be more proactive in order to see tangible outcomes.
“We are in the process of developing a strategic plan for both freight and passenger railway operations. Looking at the target achievements, we noted a slight decrease in the target volumes and this will be addressed in the implementation plan,” said Emeran. He emphasised that co-operation between the countries would also benefit the regions in terms of socio-economic development and creating jobs. Some challenges identified were investment, infrastructure, rolling stock and the need for improved technology.
Nixon Dlamini, Sara Vice-President and CEO of Eswatini Railways, said that the goal was to move goods seamlessly and they were hoping to expand Sara board membership to include the private sector.
Official Launch of ECOWAS Gender Programmes in Côte d’Ivoire (News Ghana)
The ECOWAS Centre for Gender Development (ECGD) has launched its gender programmes in the Republic of Côte d’Ivoire, marking a significant milestone in advancing gender equality and empowerment within the region.
The initiative is part of the ECOWAS Gender Strategy and Action Plan 2020-2030, focusing on gender-sensitive disaster risk reduction and other critical areas. It underscores ECOWAS’s commitment to collaborating closely with Member States, regional and international institutions, and civil society organizations to promote gender equality at all levels.
Programmes Launched included support for Women Processors: Economic empowerment of women involved in agricultural, fishery, and craft product processing through technical and financial assistance, enhancing their economic independence; and 50 Million African Women Speak Project: Creating a virtual platform to empower women entrepreneurs through networking, sharing information, and accessing financial resources across Africa.
Market integration is a process, says AfCFTA secretariat amid challenges (The Guardian Nigeria)
The Secretary-General of the African Continental Free Trade Area Secretariat, Wamkele Mene, has dismissed talks that the AfCFTA arrangement was being rushed, saying there is no trade agreement where all members were ready at the same time. Indeed, there have been concerns about countries’ readiness for the trade deal; many are yet to address issues bordering strategies and customs procedures.
Specifically, pre-existing nuances that are peculiar to African markets in terms of alignment with Western partners, language, visa restrictions, currency, insecurity, Customs Union, existing trade agreements in regions, dependence on commodity exports, infrastructure, low manufacturing activities among others, raise concerns about the expected progress from the AfCFTA market.
Similarly, with outstanding issue of Rules of Origin (RoO) dominating negotiations, the African Union (AU) has equally said the principle of reciprocity will define the exchange of tariff concessions between state parties under the AfCFTA. With free movement of persons within the continent still a major challenge, there are also concerns about services that would be effectively rendered without harassment and intimidation among trade partners.
“The most important point that I want to emphasize is that Africa is now trading under new rules, new preferences, because we want to build a single integrated market on the African continent. It may take some time before each of us sees the direct benefit. We are not going to be deterred by our critics who say they don’t see evidence that trading has actually started,” Mene said.
Africa’s trade growth lies in harmonised standards, integrated economic blocs (The Guardian Nigeria)
“Africa has been rightly described as the next frontier and in fact, in some places they say the whole world is waiting for Africa and the challenge is, is Africa responding to the rest of the world? Actually, if you look at the rest of the world, you look at Asia, America; you actually can see that we are the only ones who have not had the rapid developments that translate to growth,” says Director-General of the Standards Organisation of Nigeria (SON) and President of ARSO, Dr. Joseph Odumodu.
“I think there is a huge disconnection between Africans and the rest of the world because Africa is still the only continent that is dependent a lot on agriculture for sustenance. I have heard it said so many times that no economy can develop if it focuses only on supplying crude raw materials to the rest of the world and basically that is what we have being doing.
“We grow cocoa in Africa, we send to Europe and then we go to Europe and buy chocolates at maybe twenty times more. We bring crude oil from the grounds and we sell them abroad and then we go abroad and buy petroleum products in the process. But now there is development coming into Africa, for me there is technology coming into Africa, to the extent that now we know what to do and I think knowing what to do is the basic.”
Afreximbank backs new intra-African trade company with US$1bn investment (Global Trade Review)
The African Export-Import Bank (Afreximbank) is spending US$1bn to fund the launch of an initiative designed to grow intra-Africa trade and increase SME access to finance.
The African Trade and Distribution Company (ATDC) is a partnership between Afreximbank, Arise Integrated Industrial Platforms (Arise IIP) and the African Continental Free Trade Area (AfCFTA) Secretariat. The ATDC will focus on expanding access to regional and global markets for smallholder farmers and SMEs by providing financing, warehousing, logistics, regulatory advice and prospecting.
ATDC will also distribute processed goods and raw materials from Arise’s industrial zones, which are currently active in Gabon, Togo and Benin. These zones focus on improving Africa’s export market by turning African raw materials into finished goods, a key concern for AfCFTA member states.
2024 Ibrahim Forum Report - Financing Africa: where is the money? (Mo Ibrahim Foundation)
The Mo Ibrahim Foundation’s latest report, pdf Financing Africa: where is the money? (3.84 MB) provides a comprehensive analysis of both the financial needs deemed necessary for Africa to meet its development and climate goals and the resources that are currently available.
The report makes the point that the resources mostly exist, but either lack the relevant processes to be effectively allocated where needed, or, significantly when it comes to domestic resources, are either dormant or misused.
Commenting on the release of the report, Mo Ibrahim, Founder and Chair of the Mo Ibrahim Foundation, said: “We need a complete change of paradigm. This is not about Africa coming to the developed world with a begging bowl and developed countries considering how much more they can pledge. This is about smarter money, not just more money. As this report outlines, the money is already there. But current processes prevent resources from being used to properly address the challenges.
“Steps must be taken to reform the international financing system and update African debt structuring, risk assessment and mitigation and aid conditionalities. Even more, our continent must stop squandering its own assets and take proper ownership and responsibility. In short, we must apply good governance to ensure these assets are adequately leveraged for the best interests of our people.”
The United Nations Economic Commission for Africa (ECA), in collaboration with the African Union Commission (AUC) and the African Development Bank (AfDB), is convening an Expert Group Meeting (EGM) in Douala, Cameroon, from 20 to 22 June 2024, to review the eleventh draft edition of the flagship report on Assessing Regional Integration in Africa (ARIA-11) under the theme “Delivering on the African Economic Community: Towards a Continental Customs Union and Common Market”.
The African Continental Free Trade Area (AfCFTA), adopted in 2018 as part of Agenda 2063, is a key initiative to accelerate Africa’s economic integration. While the AfCFTA represents a significant departure from the roadmap outlined in the Abuja Treaty, it facilitates the realisation of its core objectives, including the establishment of a continental customs union and common market. The ARIA-11 report assesses Africa’s progress towards these integration goals, particularly since the implementation of the AfCFTA.
Microsoft urges Africa to leverage AI for youth empowerment, growth (The Guardian Nigeria)
Microsoft has called on governments in Africa to leverage artificial intelligence (AI) for youth empowerment and growth. Microsoft said Africa has a unique opportunity to influence what the future of work looks like in these early days as large language learning models (LLMs) are evolving, and the environment for applications is still new.
The American technology firm, along with other industry experts, in the ‘ pdf AI and the Future of Work (21.62 MB) ’ Africa whitepaper, noted that nearly one billion people in Africa are currently under the age of 35 with the continent projected to be home to almost half of the world’s youth population by the turn of the century, in effect making up half of the potential global workforce of the future.
Chief Technology and Solutions Officer at Microsoft Africa, Ravi Bhat, said: “We see a significant role for generative AI to not only transform the work environment but also foster opportunities for the youth to create jobs, innovate and help drive economic growth and stability across the continent.”
See also:
Fintech recommits to linking African businesses to global trade opportunities
Firm launches digital platform to empower artisans, informal sector
Logidoo Unveils Revolutionary Europe-Africa Trade Route to Catalyze Market Access and Economic Growth (TechBuild.Africa)
In a calculated move poised to fundamentally change cross-border trade between Europe and Africa, Logidoo, a pan-African logistics company proudly announces the launch of a new logistics corridor, set to begin its operations in June 2024.In collaboration with Skynet for domestic operations and IRsalkom for cross-border operations, this initiative aims to ensure a seamless logistics experience for businesses and strengthen economic growth as well as market expansion for African businesses following the objectives of the African Continental Free Trade Area (ACFTA).
Logidoo’s introduction of the corridor will significantly enhance intra-African trade volumes, simplify logistics across borders, improve trade with European markets, and open new avenues for African products. Also, by enhancing logistics and trade facilitation, this corridor is expected to drive economic growth, increase trade volumes, and contribute to the realization of AfCFTA’s goals.
Since its launch, by offering innovative cross-border logistics solutions, the logistics company has played a crucial role in fostering business growth and has gained significant traction in the e-commerce and logistics sector. Their approach has enabled businesses to reach new markets more efficiently, overcoming traditional barriers to trade and logistics.
The 4th Meeting of the Arab-Africa Trade Bridges (AATB) Board of Governors (BoG) alongside the 11th Meeting of the AATB Executive Committee (EC) will take place on July 1-2, 2024, in Tunis, Republic of Tunisia. In addition, AATB will be a strategic partner and sponsor the Tunisia Africa Business Meetings (TABM) 2024.
A main highlight of the event will be a roundtable discussion on “Bridging the gap on Food Security”. In 2023, AATB launched an initiative designed to address the pressing challenges of food security in the region. This program aims to enhance agricultural productivity, ensure sustainable food systems, and improve the livelihoods of communities across Arab and African countries.
Business e-commerce sales and the role of online platforms (UNCTAD)
In 2021, approaching US$ 25 trillion of e-commerce sales were generated by businesses across 43 developed and developing economies accounting for around three quarters of worldwide GDP. This represents a 15 per cent increase over pre-pandemic (2019) levels and sales are estimated to have risen a further 10 per cent - to almost $27 trillion - in 2022.
The share of business turnover generated through e-commerce varies widely in the economies analysed, from less than one per cent to as much as 30 per cent. In almost all cases, the majority of e-commerce sales by businesses are made to other businesses or organizations. In most, the share of business-to-consumer sales is less than a quarter. While developing economies generate around 40 per cent of global GDP, their share in business e-commerce sales is considerably lower.
The bulk of e-commerce sales across these 43 developed and developing economies, which also account for around three quarters of exports globally, occur between buyers and sellers resident in the same economic territory. It is estimated that digitally ordered exports (i.e. international e-commerce sales) from these economies were worth around $2.5 trillion in 2021. This equates to around 13 per cent of total exports of goods and services. However, as there is limited data on digitally ordered trade, this estimate is relatively uncertain.
World leaders launch programme to boost vaccine production in Africa (Al Jazeera)
French President Emmanuel Macron has joined several African leaders to kick off a planned $1.1bn project to accelerate vaccine production in Africa, after the COVID-19 pandemic exposed inequalities in access to inoculation. The launch of the African Vaccine Manufacturing Accelerator at an event in Paris on Thursday will provide financial incentives to boost local vaccine manufacturing in the continent.
African Union Commission chief Moussa Faki Mahamat welcomed the initiative, saying that it “could become a catalyst for promoting the pharmaceutical industry in Africa and fostering collaboration between member states”. Africa imports “99 percent of its vaccines at an exorbitant cost”, he said. Macron said the programme “will be an essential step towards a genuine African vaccine market”.
The European Union said the bloc and its member states will contribute $800m to the vaccine manufacturing scheme. It said the programme will offset start-up costs and ensure demand for vaccines made in Africa.
Quick links
More Asian nations want to join Putin, Xi in expanded BRICS (Engineering News)
Zebra Study: Only 16% of Manufacturers Have Real-Time Visibility into Manufacturing Production (Zebra Technologies)
Investor-State Dispute Settlement: A Key Feature of the Trade Policy Response to Climate Challenges (CSIS)
WTO members advance on plans to deepen exchanges on environmental measures (WTO)
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South Africa eyes partnership with Nigeria after hitting N1 trillion trade in Q1, 2024 (Nairametrics)
President of the Republic of South Africa, Cyril Ramaphosa says he will sustain a strategic partnership with Nigeria. This is after his country emerged as Nigeria’s top trading partner in Africa in Q1, 2024, hitting over N1 trillion, according to data from the Nigerian Bureau of Statistics (NBS). The South African side assured of strategic partnership resulting in “economic integration” in Africa.
“South Africa regards Nigeria as a strategic partner in the context of bilateral relations, the West Africa region, and the continent in the pursuance of the African Agenda, South-South cooperation and in the promotion of a rules-based International System. “Our two countries share a common vision on issues of political and economic integration in Africa,” the South African government tweeted.
Namibia is helping its top companies compete globally (WEF)
In Namibia, we know that many businesses are now under increasing pressure to green their supply chains and reduce emissions across their product lines. That’s why the government has established the Namibia Sustainable Supplier Database in partnership with the World Economic Forum. The database platform is a searchable online tool of Namibian businesses. Investors and global firms looking to source from Namibia can view company details as well as their engagement with five sustainable development criteria.
The database is easy to navigate, and users can filter results based on specific criteria to connect with suppliers that best suit their needs. For Namibian businesses, it is an opportunity to showcase sustainability efforts in sectors like tourism, mining, and agriculture, where the country is an exporter, and to help position Namibia at the forefront of the green transition.
Minerals account for approximately 60% of Namibian exports, followed by farm and fish exports. Tourism contributes to 6.9% of the country’s GDP. These figures reinforce the importance of finding supply chain and investment partners interested in supporting our companies’ sustainability efforts.
Namibia’s Oil and Gas Could Boost Economy Without Hurting Other Sectors (The Namibian)
Namibia’s partnership with the global community and local enterprises reveals a desire for an industrialised future by utilising its resources. The country has begun to overhaul its regulatory structure and fiscal policies to attract investment and encourage economic growth through oil, gas and renewable energy. This presents enormous opportunities for both domestic and international businesses.
Namibia boasts 11 billion barrels of oil and 2,2 trillion cubic feet of natural gas reserves, paving the way for enhanced exploration and production for neighboring countries. This is supported by a report from the Bank of Namibia (BoN), which shows that the oil and gas sector generated N$33,4 billion in foreign direct investment (FDI) between 2021 and 2023.
As Namibia’s population ages and becomes more urbanised, we must recognise that the country will need more energy. For the socio-economic and economic domains, oil will be indispensable. Therefore, we need to realise this is a long-term development. It should be highlighted that Namibia has a long way to go in terms of oil and gas expertise, so we must be willing to welcome the international community to share their knowledge and skills. It requires a lot of capital and the infrastructure is costly. Namibia needs both experience and foreign direct investment in the industry to develop this infrastructure.
To avoid dependence on the oil and gas industries, we should diversify economic endeavours and maintain balance across sectors and implement appropriate national and economic strategies to ensure mining, agriculture and other essential sectors are not isolated. We have the opportunity to use this transformation to drive competitiveness and assist Namibia to achieve economic independence.
Agronomic board stops specific vegetable imports to protect farmers (The Namibian)
The Namibian Agronomic Board (NAB) has imposed a closed border policy on specific vegetables for June to protect local farmers. According to a recent report by Simonis Storm Securities, the policy aims to strike a balance between supporting local producers and ensuring consumer access to fresh produce.
“We’re implementing a closed border policy for specific vegetables this month,” noted the report. “This includes beetroot, butternut, cabbage and onions. By limiting imports, we create a more favourable environment for our domestic growers to thrive,” noted the report. The NAB’s closed border policy for specific vegetables aims to stimulate domestic production and reduce reliance on imports.
Mozambique loses between 60 and 70 million dollars due to illegal fishing (Club of Mozambique)
Mozambique loses between 60 and 70 million dollars a year as a result of illegal fishing and tax evasion by vessels not licensed to carry out maritime operations.
According to the spokesperson of the National Maritime Institute (INAMAR), Leonid Chimarizene, who was speaking in Maputo, at the 2nd Meeting of the Operational Working Group of the Southern African Development Community (SADC) Regional Fisheries Monitoring, Control and Surveillance Coordination Centre (MCSCC), in order to reduce the number of cases, the government, in partnership with other SADC member countries, is working to combat illegal fishing.
“A vessel that is not on the legal circuit ends up damaging the country in various ways. Illegal fishing can’t be combated individually, that’s why the countries of the region are here”, Chimarizene said.
Zim ready to expand EU trade relations (The Herald)
Zimbabwe stands ready to expand trade relations with the European Union in line with its open for business mantra, the Permanent Secretary for Foreign Affairs and International Trade, Ambassador Albert Chimbindi, has said. On Tuesday, Amb Chimbindi met the director-general of the EU External Action Service Ambassador Rita Laranjinha on the sidelines of the EU-Sadc Ministerial Meeting in Luanda, Angola.
Amb Laranjinha acknowledged the ongoing trade negotiations between the EU and Zimbabwe and the progress made so far, as well as where the two are heading. “We know that there are ongoing negotiations between the EU and Zimbabwe on trade matters, and I think that we’ve made good progress in that regard on the understanding where we can continue to take these negotiations forward. That would be very, very important.”
The Sub-Regional Office for Central Africa of the United Nations Economic Commission for Africa, in partnership with the UNDP Congo Country Office, has begun supporting the Republic of Congo in setting up its Master Plan for Industrialization and Economic Diversification (PDIDE). The PDIDE being formulated should serve as the basis for transforming the Congolese production system towards a low-carbon, greener economy. This industrial strategy should be accompanied by a skills revolution and capacity development.
According to Adama Ekberg Coulibaly, Senior Economist at ECA Central Africa Office, “the PDIDE is a framework for joint commitment to ensure the collaboration and coordination of all stakeholders called upon to implement the common roadmap that will enable the Congolese economy to diversify its sources of growth”. The development and implementation of a Master Plan for Industrialization and Economic Diversification would not only increase the contribution of the Congolese industrial sector to GDP, but also make the most of the African Continental Free Trade Area (AfCFTA), for which Congo has adopted an implementation strategy.
The Republic of Equatorial Guinea has validated its national strategy for implementing the AfCFTA and now holds the keys to its strategic positioning in the African single market. At the end of a technical and multi-sectoral review workshop organized by ECA’s Sub-Regional Office for Central Africa and the Ministry of Trade and SMEs promotion, the action plan enabling Equatorial Guinea to take the most advantage from the AfCFTA was validated.
The strategy’s vision is to make Equatorial Guinea a reference trading partner in the continental economic space by 2029. This is based on a specific objective of ensuring commercial and productive integration of the national economy within the framework of the continent’s single and liberalized market.
To achieve this, the validated action plan is built on 7 axes and will help the country to: adapt and implement national trade policies that are coherent and oriented towards stimulating trade with Africa; streamline its trade by reducing the cost and duration of transporting goods from Equatorial Guinea to other markets in Africa; integrate regional value chains through improving local manufacturing capacities for made in Equatorial Guinea products; develop and finance infrastructure projects with an emphasis on multimodal transport and energy; improve access to information on trade and investment opportunities in Africa, strengthen private sector access to trade financing for the production and marketing of products of Equato-Guinean origin on the African market; promote the free movement of people, investments and factors of production.
Equatorial Guinea can count on its comparative and competitive advantages that the strategy calls for densification: tourism, the blue economy and the export potential of oil, methanol and wood.
Ghana must revamp economic policies for sustainable future - NDPC Chairman (Modern Ghana)
There is a need for a thorough re-evaluation of Ghana’s economic policies and strategies to achieve sustainable development, the Chairman of the National Development Planning Commission (NDPC), Professor George Gyan-Baffour, has said. “Since Ghana’s independence in 1957, all governments have been implementing economic policies and strategies to achieve sustainable development,” he stated. However, he acknowledged that Ghana’s economy has remained vulnerable to external shocks, exposing “cracks in our economic policies and strategies.”
Prof. Gyan-Baffour underlined the importance of consolidating the small economic gains Ghana has realised and initiating more forward-looking economic policies and strategies to strengthen our economic growth to achieve sustainable development. He highlighted the unveiling of Ghana’s Vision 2057, a long-term development framework aimed at transforming the country into an upper-middle-income economy by its 100th anniversary of independence.
Nigeria’s Digital Economy recorded minimal growth in Tinubu’s first year as president (Premium Times Nigeria)
During his election campaign, President Bola Tinubu presented an 80-page policy document titled “Renewed Hope 2023—Action Plan for a Better Nigeria.” The document outlined strategies for how the Tinubu administration would place Nigeria on its path to economic rebirth.
Under a segment titled ‘The Digital Economy: Taking Advantage of The Fourth Industrial Revolution’, the ruling All Progressives Congress (APC) candidate highlighted seven focus areas. He promised that Nigeria’s employment rate and the digital economy would record a boost through ICT-enabled outsourcing, Innovation and Entrepreneurship, Tech manufacturing, E-Commerce, Government Digital Services, and improved Broadband penetration and Blockchain development.
In October 2023, the Ministry of Communications, Innovation and Digital Economy, headed by Bosun Tijani, launched its strategic blueprint. According to the ministry, the document will help “accelerate the diversification of the Nigerian economy by enhancing productivity in the critical sectors through technological innovations.” The document identified knowledge, policy, infrastructure, innovation, entrepreneurship and capital, as well as trade, as the five core pillars that will accelerate the nation’s economic growth.
But how well have these strategies been implemented, and has Nigeria’s digital economy indeed seen a turnaround in the past year?
Strengthening productivity, institutions and e-commerce in Senegal (Trade for Development News)
Senegal is a relatively stable West African country bordered by Mali, Mauritania, Guinea Bissau and Guinea. 60% of its population of 16.7 million is young (under 35 years old) and predominantly urban. Senegal is known as the “Gateway to Africa” due to its location at the most western point of the continent, an intersection of major maritime and aerial routes.
Senegal’s lower middle-income economy is characterized by a Gross Domestic Product of USD 27.68 billion and a per capita Gross National Income of USD 1,599 (2022). Mining, construction, tourism, fishing and agriculture are prime drivers of the economy. After recording negative growth due to COVID-19, Senegal recorded economic growth of 6.5% in 2021, followed by a decline to 4.2% in 2022 due to adverse climate effects, a reduction in investments and a global economic downturn due to the Ukraine war. In 2021, Senegal met two of the three LDC graduation criteria, human per capita and human assets, and is due for reassessment in 2024.
The Enhanced Integrated Framework (EIF)’s support in Senegal focused on five key areas: better integration of trade into national development strategies; strengthening of institutional capacities in the public and private sectors; improvement of the business environment; development of agricultural value chains, mainly in the mango and cashew nut sectors; and development e-commerce capability.
Afreximbank signs term sheet to finance new terminal at Cameroon’s Douala Port (Afreximbank)
African Export-Import Bank (Afreximbank) has signed an indicative term sheet with APD-Cameroon for the financing of the development and operation of a new port terminal in Douala, Cameroon, estimated to cost EUR210 million. According to the term sheet, the proposed facility will be in two tranches in Euro and Central African Francs (XAF) of up to EUR147 million, with a proposed Afreximbank participation of EUR80 million.
Addressing guests at the signing ceremony, which took place as part of the ongoing Afreximbank Annual Meetings (AAM2024), Helen Brume, Director of Project and Asset Based Finance at Afreximbank, said that the facility would help to address the “significant infrastructure financing gap” which remained on the African continent.
“By signing this term sheet, we are committed to helping our countries bridge this gap. We applaud the initiative of APD-Cameroon, which through its commitment to this project, is helping to promote an innovative financing mechanism through a public-private partnership, thereby, reducing the financial burden of these strategic investments on the Government of Cameroon,” said Mrs. Brume.
Somalia Expects 3.1 percent GDP Growth, Rebounding from Drought and Commodity Price Shocks (World Bank)
Somalia’s economy is expected to grow at 3.1 percent in 2023 up from 2.4 percent in 2022. This rebound in growth was driven by improved weather conditions and policy reforms instituted by the government to reach the Heavily Indebted Poor Countries (HIPC) Completion Point.
The latest Somalia Economic Update notes that the medium-term growth outlook will remain modest, with growth projected at 3.7 percent in 2024 and 3.9 percent in 2025. While this growth faces significant risks, including persistent climatic shocks, security threats, and global economic shocks, the Federal Government of Somalia (FGS) continues to maintain broad-based fiscal stability. Inflationary pressures have also eased, driven by declining food prices, improved weather, and easing of global commodity prices.
“Addressing climate challenges and risks is essential for sustainable and resilient economic growth,” said Kristina Svensson, World Bank Country Manager for Somalia. “There is an urgent need for the Government of Somalia to support sustained and long-term growth, anchored on macroeconomic stability, broad-based structural reforms, and longer-term resilience to climate change at the whole-of-economy level.”
Stakeholders Call For Education, Standardisation To Boost Intra-Africa Trade (News Agency of Nigeria)
The stakeholders said this on Wednesday in Abuja at the ongoing 30th General Assembly of the African Organisation for Standardisation (ARSO). The Minister of Industry, Trade and Investment, Doris Anite, said a symbiotic relationship existed between education, sustainable development, industrialisation, and trade in the 21st century. The minister was represented by her Permanent Secretary, Nura Rimi. According to Anite, the ministry considers these essential for economic efficiency, trade facilitation, and tackling developmental challenges. She said standardisation was a strategic pillar for governments, stakeholders, and the standardisation community.
“As provided under the African Continental Free Trade Area (AfCFTA), it is necessary to create awareness of the role of standardisation in sustainable development to catch up with the rest of the world. “Standards shape our everyday lives, drive economic efficiency, facilitate trade and are the fulcrum for tackling the challenges of moving towards a more sustainable and resilient development model,” she said.
The minister called for enhanced synergy and collaboration among African nations and ARSO member states to implement the AfCFTA agreement effectively.
Airbus has identified unserved air routes to, from and within Africa (Engineering News)
On Thursday, at the AviaDev Conference in Windhoek, Namibia, Airbus released its latest report on commercial aviation in Africa. The 53-page report is titled ‘Exploring the horizons: A study of unserved air routes to, from and within Africa’. “Despite significant traffic between certain city-pairs, some identified routes still lack regularly scheduled non-stop flights,” pointed out Airbus market intelligence and consulting director Geert Lemaire. “Factors such as restrictive bilateral air service agreements, economic variables, and challenges and capacity, frequency and operating cost efficiency contribute to these routes remaining unserved.”
Perhaps surprisingly, several of the unserved routes identified by Airbus involve major cities, including Cape Town (South Africa), Dakar (Senegal), Douala (Cameroon), Lagos (Nigeria) and Nairobi (Kenya). Establishing scheduled services on the currently unserved routes across the continent would impel economic growth, increase connectivity for travellers, and deliver a significant revenue boost for African airlines.
Afreximbank and Africa CDC pledge US$2 billion facility in support of Africa Health and Pharmaceutical Products Manufacturing (Afreximbank)
African Export-Import Bank and the Africa Center for Diseases Control and Prevention (Africa CDC) have renewed their partnership with a new cooperation agreement announced today on the sidelines of the Global Forum for Vaccine Sovereignty and Innovation in Paris, France. Through this collaboration, Afreximbank has committed a US$ 2 billion facility to the “Africa Health Security Investment Plan” to support the health product manufacturing ambition of the continent. This initiative will focus on the African Pooled Procurement Mechanism (APPM) and the Platform for Harmonized African Health Products Manufacturing (PHAHM).
African pharmaceutical companies face severe impacts of the global health, security and economic challenges, yet they are the drivers of investments and technology advancements that the health sector needs. Low investor confidence, lack of appropriate infrastructure, trade related barriers, and regulatory challenges are some of the constraints to investment in Africa’s health sector.
Closing the investment gap will be crucial to achieving the African Union’s ambition of manufacturing 60% of vaccines needed locally by the year 2040 as well as implementing all other countermeasures necessary to ensure self-reliance especially during crises such as pandemics and outbreaks.
On Friday 14 June 2024, Bissau, the capital of Guinea Bissau, hosted the 4th Meeting of the Ministers of Information and Communication Technologies (ICT)/Digital Economy and those of Finance and/or Planning of the ECOWAS Member States involved in the Amilcar Cabral submarine telecoms cable development project.
The Amilcar Cabral submarine telecoms cable development project involves 6 ECOWAS countries: Cabo Verde, The Gambia, Guinea, Guinea-Bissau, Liberia and Sierra Leone. Its aim is to establish a fibre-optic submarine cable link that will provide redundant international connectivity for these countries, which currently have only one landing station, and to increase the international bandwidth available to Internet users in the countries concerned. It will improve the quality, reliability and accessibility of international telecommunications services, bringing tangible socio-economic benefits to the target countries.
During the meeting, the Ministers adopted the principle of starting the project with the two countries that have already mobilised the necessary resources, even if it means finding a formula or framework for reimbursement by the other four countries under an agreement to be prepared by ECOWAS and signed by all the parties.
Boosting Africa’s digital economy: FADB unveils roadmap for growth (The Sun)
A significant step towards a thriving digital Africa was taken this week with the launch of the Federation of African Digital Businesses (FADB). This new initiative, formed by leaders from key ICT organisations across eight African nations, aims to unlock the continent’s digital potential and propel economic growth.
The FADB’s establishment, solidified by the signing of the Marrakech Declaration, signifies a landmark collaboration between the public and private sectors in Africa’s digital landscape. The founding members outlined a set of strategic goals to address Africa’s digital challenges and unlock growth opportunities: Improved Business Environment; Universal Digital Access; Empowering Local Entrepreneurs; Enhanced Digital Skills; Financial Inclusion; Streamlined Regulations; and E-commerce Growth.
Africa: Foreign investment in clean energy boosts sustainability momentum (UNCTAD)
Foreign direct investment (FDI) flows to Africa fell by 3% to $53 billion in 2023, according to the latest World Investment Report released on 20 June. Two of the largest recipient economies – Egypt and South Africa – drove the overall trend. During the year, the estimated value of international project finance deals in African nations declined by 50% to $64 billion. This follows a 20% drop in 2022.
However, the continent attracted a growing share of global greenfield megaprojects, six of them valued above $5 billion. Topping the list was a green hydrogen project in Mauritania, a least developed country in Northwest Africa. This project is expected to generate $34 billion in investment, an amount several times greater than the nation’s GDP. Africa also received more than $10 billion in project finance for wind and solar electricity production, with the largest projects located in Egypt, South Africa, and Zimbabwe.
Value chains for electric vehicles also prompted foreign investments. The largest deals announced included one to establish a $6.4-billion electric vehicle battery manufacturing facility in Morocco. The main economies investing in the continent, by FDI stock, are the Kingdom of the Netherlands, France, the United States, the United Kingdom, and China.
Global foreign investment weak in 2023, funding for sustainable development sectors drops over 10% (UNCTAD)
In 2023, global foreign direct investment (FDI) decreased by 2% to $1.3 trillion, according to the latest World Investment Report. When excluding the impact of a few exceptions, the report reveals a sharper decline of over 10% in global foreign investments for the second consecutive year. This decline is driven by increasing trade and geopolitical tensions in a slowing global economy.
While the prospects for FDI remain challenging in 2024, the report says that “modest growth for the full year appears possible”, citing the easing of financial conditions and concerted efforts towards investment facilitation – a prominent feature of national policies and international agreements.
With the global push to attract and retain financial flows, online information portals and single windows have proliferated to foster a conducive business and investment climate. For developing countries, digitalization not only provides a technical solution, but also a stepping stone for wider digital government implementation to address underlying weaknesses in governance and institutions which often hinder investment.
China’s effort to develop “new quality productive forces” injects new momentum into achieving the UN Sustainable Development Goals, said Erik Solheim, co-chair of the Europe-Asia Center and former under-secretary-general of the United Nations.
The concept of “new quality productive forces” was first proposed by Chinese President Xi Jinping in 2023, which encapsulates China’s successful combination of technological innovation and green development, he said, adding that China’s effort in this regard is crucial for the global green transformation.
“China is now the core of global green development and an indispensable force in the global green transformation,” said Solheim, noting that countries seeking green development without cooperating with China will “pay more time and cost.” Solheim highlighted China’s role in high-tech industries, saying that alongside Silicon Valley, “China is the other center of industrial and high-tech development in the world.” He said Chinese companies supply nearly 60 percent of the global green product market, including the photovoltaic industry, driven by continuous technological innovation.
UN Secretary-General António Guterres’ remarks to the Global Leaders Forum for the sixtieth anniversary of UN Trade and Development (UNCTAD), in Geneva on 12 June
Today, the clarity and commitment of UN Trade and Development are more relevant than ever. Geopolitical divisions are rising; inequalities are growing; the climate crisis is hitting many developing countries hard. And new and protracted conflicts are having a ripple effect across the global economy.
The international financial architecture has been exposed as outdated, dysfunctional and unjust. It has failed to provide a safety net for developing countries mired in debt. And the international trading system is challenged on all sides; teetering on the verge of fragmentation. Trade has become a double-edged sword: a source of both prosperity and inequality; interconnection and dependence; economic innovation and environmental degradation. In this context, I welcome the reforms to UNCTAD initiated by Secretary General Rebeca Grynspan.
G7 Pledges to Accelerate SDGs, Transition from Fossil Fuels This Decade (SDG Knowledge Hub)
The Group of 7 (G7) leaders from Canada, France, Germany, Italy, Japan, the UK, and the US, with the EU, have wrapped up a three-day summit, united in their “steadfast commitment” to implementing the 2030 Agenda for Sustainable Development. They pledged to redouble their efforts to accelerate progress towards the SDGs, including by transitioning away from fossil fuels in energy systems in this decade.
The 36-page Apulia G7 Leaders’ Communiqué reiterates the Group’s “enduring unity and determination to meet global challenges… as the international community confronts multiple interconnected crises.” It reaffirms the leaders’ “shared belief in democratic principles and free societies, universal human rights, social progress, and respect for multilateralism and the rule of law.” The document further signals the leaders’ intention to support more effective, inclusive, and equitable global governance and to safeguard international peace and security while upholding “the free and open rules-based international order.”
Why energy efficiency is as important as renewables growth (WEF)
By 2050, global electricity demand is expected to more than double from today’s levels due to population growth and increased electrification of things like transportation and heat-intensive manufacturing processes. Even though more renewable energy will be available, it will not be enough to meet our decarbonization goals. We need to focus on managing demand to make faster progress.
Changing how we use energy is crucial for both energy security and cutting emissions. We need to prioritize energy efficiency on a par with switching to renewable energy, especially in the next decade. And as the world grapples with this crucial transition towards more sustainable energy systems, we must listen to insights from the developing world. Many of these countries are already working to transform energy demand and can offer invaluable lessons as the rest of the world navigates this transition.
Boosting energy productivity is not only good for the environment but also financially rewarding. If certain measures are taken by 2030, it could create a roughly 30% reduction in energy intensity and up to $2 trillion in annual savings. Existing technologies and solutions deployed and sectors like industrial manufacturing, transport and the built environment could have the most impact.
Quick links
Enhancing trade flexibility and facilitating trade finance: UNCITRAL’s latest on negotiable cargo documents and negotiable electronic cargo records (Trade Finance Global)
OPEC Fund Development Forum 2024: Sustainable development and private sector growth (Trade Finance Global)
Global Gas Flaring Jumps to Highest Level since 2019 (World Bank)
Facilitator briefs members on start of formal dispute settlement reform work (WTO)
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South Africa finds high prices, lack of competition in its fresh produce market (Engineering News)
South Africa’s competition watchdog has uncovered barriers to entry, distorted competition and price mark-ups in its fresh produce market, according to a provisional report released on Tuesday after an inquiry. Last year the Competition Commission launched the Fresh Produce Market inquiry in order to examine whether any features in the fresh produce value chain impede, restrict or distort competition in the market.
Detailing the findings of the preliminary report, Deputy Commissioner Hardin Ratshisusu said the inquiry found some instances of high mark-ups by retailers which have been sustained over a period of time, which the Commission found to be an indictor of a lack of competition. The inquiry also noted that there is still slow progress in integrating historically disadvantaged small-to-medium enterprise farmers into various retailers’ supply chains.
The agricultural sector contributes approximately 2.5% of South Africa’s gross domestic product, while the market size of the domestic fresh produce market is estimated at over R53-billion annually.
Namibia’s tightened visa rules threaten tourism growth (ZAWYA)
The Southern African Development Community (SADC) Business Council Tourism Alliance has voiced strong opposition to Namibia’s planned restrictive visa policies. The Alliance warns that these policies could cripple the nation’s tourism sector and hinder economic growth.
Namibia recently removed visa-free entry for citizens of 31 countries, most of whom are major tourists. This decision has sparked criticism from tourism and economic groups who fear it will damage Namibia’s tourism industry and economic growth. The Economic Policy Research Association (EPRA) urged the Namibian government to talk with these countries instead of imposing visa restrictions.
It says this move by Namibia directly contradicts Namibia Airports Company’s recent “Air Connect Namibia” strategy, which aims to attract more international flights and improve overall connectivity. The SADC Business Council Tourism Alliance fears stricter visa requirements will have a negative domino effect, impacting not just tourism but also hospitality, transportation, and retail – all industries that rely heavily on international visitors.
FG tasks African countries on SMEs training to boost continent’s economy (Tribune Online)
The Federal Government has tasked African countries to invest more in the training of the Small and Medium Enterprises (SMEs) on issues of standards as a means of improving the continent’s economy. Speaking while declaring open the 30th Assembly of the African Organization for Standardization (ARSO) in Abuja on Wednesday the Minister of Industry, Trade and Investment, Dr. Doris Uzoka Anite said standardization plays a vital role in the growth of the economy.
She stated that “allow me to highlight that the 30th ARSO General Assembly theme, “Educate an African fit for the 21st Century – Building a Quality Culture – “One Market, One Standard” articulates the essential role of standardisation in promoting sustainable development, innovation, export-oriented manufacturing and production.
Represented by the Permanent Secretary, Amb. Nura Abba, the Minister explained, “as you are already aware; standards shape our everyday lives, drive economic efficiency, facilitate trade and are the fulcrum for tackling the challenges of moving towards a more sustainable and resilient model of development. “There are many areas of policy-making decisions guided by standards of different kinds in areas such as facilitating international trade as well as helping establish trust through guaranteed specifications and quality requirements.
How President Ruto’s Punitive Taxes Threaten Namibia-Kenya Trade (The Namibian)
President William Ruto’s finance bill 2024, tabled in parliament for passage yesterday, contains punitive taxes poised to dent the progressive strides made towards bolstering much-needed intra-Africa trade. More specifically, it threatens the efforts to enhance and strengthen trade and investments between Kenya and Namibia.
Fresh data by auditing firm KPMG Kenya has shown that the bill, once assented to by Ruto and becoming effective by 1 July, is expected to impact both Namibian and Kenyan importers and exporters, manufacturers, air travellers, banking and money transfer chains, and digital marketplaces. For instance, the bill proposes to increase the rate of import duty from 2,5% to 3% of the customs value of imported goods, payable by the importer at the time of entering the goods for home use.
This comes barely one year after the rate was reduced from 3,5% to 2,5%. The increase is expected to raise the cost of importing Namibian products into the country. The bill also proposes to introduce the eco levy on select locally manufactured and imported goods. This is the introduction of yet another levy after the Finance Act of 2023 introduced the export and investment promotion levy.
Concerning the export and investment promotion levy (EIPL), the Finance Act of 2023 introduced the EIPL on select goods imported into the country for home use. The stated purpose of the levy was to provide funds to boost manufacturing, increase exports, create jobs, save on foreign exchange and promote investments. However, the finance bill of 2024 proposes to delete the entire third schedule as introduced by the Finance Act and in its place introduce a new schedule of items to be subject to an export and investment promotion levy.
I therefore add my voice and call upon Kenyan parliamentarians to reject the punitive bill. Elvis Mboya is the founder and ambassador of the Namibia-Kenya Chamber of Commerce
Govt unveils plans to support exporters (Nilepost)
The Permanent Secretary at the Ministry of Finance, Mr Ramathan Ggoobi, has outlined strategies on how the government intends to support producers and service providers who engage in exporting. Mr Ggoobi made these statements during a post-budget dialogue for the Financial Year 2024/25 in Kampala on Wednesday. The dialogue was organised by Civil Society Budget Advocacy Group (CSBAG) in collaboration with Advocates Coalition for Development and Environment (ACODE) and other partners in Kampala.
Mr Ggoobi, who is also the and Secretary to the Treasury, affirmed that the government will foster export growth and development in the upcoming financial year by creating a favorable environment for producers and manufacturers to access foreign markets. He encouraged citizens to embrace exporting and assured them of government support. “Exports are key drivers of economic growth and prosperity, and the government is fully committed to assisting those with the capacity to produce and export,” said Ggoobi.
COMESA Investment Forum (CIF 2024) (African Manager)
The COMESA Regional Investment Agency (RIA), will inaugurate the COMESA Investment Forum (CIF 2024) on 27th June, in Tunis, Tunisia. This high-level forum offers participants an unparalleled platform for promoting trade and investment within the COMESA region.
The forum is a business-to-business (B2B) and government-to-business (B2G) gathering, bringing together leading policymakers with captains of industry, financiers, major industrialists, and investors from across the COMESA region, focusing on strategic sectors: Agribusiness, Pharmaceutical, Renewable Energy, IT, among others. Over 150participants are expected during the forum to advance trade and investment across the COMESA region.
This year’s edition takes place against an important backdrop with Tunisia, having joined COMESA in July 2018, offering a strategic gateway to the region’s extensive market. The theme for this year, “Unleashing Potential: Cross-Border Trade and Investments,” reflects the need for policymakers and the private sector to collaborate more closely and take decisive actions to advance and fast-track development across the region through enhancing cross border investment and trade flows.
Digital currency has power to accelerate financial inclusion – Bahamas Central Bank Governor (The New Times)
The Bahamas became the world’s first country to launch a central bank digital currency (CBDC) in 2020. The Sand Dollar as it is known is the digital version of the Bahamian dollar (B$). The Bahamian government introduced the CBDC to allow for greater flexibility and accessibility of people who want to participate in financial services through a mobile phone application or a card payment.
“It’s been challenging because there is an incredible amount of technical work and preparation involved. I think there's still a considerable amount of work that is ahead of us,” said Central Bank of the Bahamas Governor, Derek Sean Rolle, speaking to the New Times’ Business Editor Julius Bizimungu
“There's incredible awareness locally around the digital currency, and we deliberately took that effort, starting particularly in 2023, to just let people know that there was a digital currency and how it worked.
We didn't put any emphasis on telling people how to get it because we were so busy doing more of the work around improving the ease of onboarding for mobile wallets. Now we're at the stage where we can allow that access to be more easily facilitated, but we are still doing it in a gradual way.”
South African countries performed well on their financial inclusion, between 2011 and 2021. Progress is partly attributed to rapid adoption of digital financial services including mobile money, according to financial experts at a webinar on the African Financial Sector Southern Africa. Organized by the Economic Commission for Africa (ECA) in partnership with West African Economic and Monetary Union (WAEMU), the webinar is part of a Series themed, Regional Dialogues on the African Financial Sector - regional profile.
In her opening remarks Eunice Kamwendo, ECA’s Director of the Subregional Office for Southern Africa noted the potential for growth, innovation and sustainable investments in the financial sector in Southern Africa. “Southern African region’s financial sector faces financial challenges that include liquidity issues, debt distress, limited access to financial services, high levels of informality and regulatory constraints; Despite these challenges, it is important to prioritize the development of the financial sector to create stability, mobilize domestic resources and foster a stable environment for investment,” said Ms. Kamwendo.
Presenting a report on the demographic economic landscape of the Southern African region, Andrew Bamugye, Senior investment manager SME, Trade and Development Bank said the banking sector in Southern Africa has remained solvent with adequate capital
“The challenge in the banking industry in the region is the strong interconnection between the banking system and non – banking financial institutions and foreign markets, which leads to the risk of contagion,” said Mr. Bamugye.
In a critical step towards bolstering Africa’s economic integration, the United Nations Economic Commission for Africa (ECA) in collaboration with the African Union (AU) is convening an Expert Group Meeting (EGM) on 19 June 2024 in Douala, Cameroon. The meeting aims to evaluate and enhance the implementation of the Boosting Intra-African Trade (BIAT) Action Plan, ensuring that it aligns with the transformative goals of the African Continental Free Trade Area (AfCFTA).
Trade integration is recognized as an important driver for inclusive growth and economic development across Africa. Despite Africa’s substantial potential, the continent’s share in global exports remains low at around 3%, highlighting the need for increased intra-African trade and industrialization. Currently, intra-African exports and imports stand at 17.8% and 14.6% respectively, far below the levels observed in Europe and Asia.
The Douala EGM at Krystal Palace Hotel will serve as a veritable platform to review the draft report titled “Framework for Boosting Intra-African Trade (BIAT), Ten-Years After: Progress, Implementation Challenges, and Implications for the AfCFTA.” The meeting will gather insights from experts, Regional Economic Communities (RECs), and other stakeholders to enrich the report’s content, enhance its analytical soundness, and ensure the robustness of its data and recommendations.
Potential or Peril: Carbon Trading in Africa (Policy Center)
Carbon trading have long been touted as a silver bullet to channelise climate finance to African countries lacking the capital to support climate mitigation and adaptation efforts. The erstwhile ‘Kyoto Protocol’ and its successor ‘The Paris Agreement’, though much more comprehensive and wider in scope, both recognize the importance of carbon trading (a form of carbon pricing) in combatting climate change, and in the Paris Agreement the same is enshrined under Article 6 and its sub-components
Carbon credits are generated from avoiding, reducing, or removing greenhouse gas emissions by either switching from fossil fuels to cleaner alternatives, adopting energy efficient technologies or conserving and increasing forests which are primary providers of carbon cycle ecosystem services. However, it must be noted, that apart from Article 6, carbon credits can be generated from domestic or closed jurisdiction carbon markets under national or regional compliance mechanisms such as the EU ETS and many other countries domestic carbon markets, as well as voluntary carbon markets where companies or countries can offset their emissions of their own accord by purchase of carbon credits arising for mitigation based economic activities.
Africa, which has contributed least to historical emissions and continues to have the lowest per capita emissions globally (an annual average of 1 ton of CO2 compared to 10.3 ton in North America), faces a disproportionate burden from climate change. According to the World Bank, while China must raise its annual climate mitigation spending by 2% of GDP through 2030, Cameroon must do so by a staggering 9% of the GDP. Countries of the West African Sahel including Burkina Faso, Chad, Mali, Mauritania, and Niger, need to increase spending by about 8% of GDP on average to support mitigation efforts at home. Moreover, African governments, as in most emerging economies, are fiscally constrained, particularly in the wake of the COVID-19 crises. Their debt-to-GDP ratios are high, as high as 70% and 40% in South Africa and Nigeria respectively in 2021. This means a limited ability to borrow from the international markets. The situation is compounded by insufficient lending from multilateral banks, often accompanied by harsh conditionality.
The situation begs for innovative financial engineering and creative thinking that can help mobilize large-scale and low-cost climate finance for the region.
As interest in carbon markets in Africa continue to rise, the sixtieth session of the subsidiary bodies (SB60) of the United Nations Framework Convention on Climate Change (UNFCCC) failed to reach agreement on all technicalities related to the implementation of Article 6 of the Paris Agreement, demonstrating the complex challenges of emissions trading. The methodological elements of the new UN carbon crediting mechanism also remained largely unresolved. Article 6 governs how countries can cooperate voluntarily in the implementation of their nationally determined contributions to climate action while promoting sustainable development and environmental integrity.
The SB60 negotiations on Articles 6.2 and 6.4 of the Paris Agreement focused on the technicalities of international carbon trade, particularly authorization and reporting on transaction, as well as the role of an international registry. The African Group of Negotiators on climate change (AGN) offered progressive solutions which can potentially break the impasse and link the voluntary trading schemes of Article 6.2 with authorization processes deriving from Article 6.4, and thus addressing many of the uncertainties of voluntary carbon trading.
The AGN’s contributions to the SB60 negotiations on Article 6 were informed by key outcomes from a regional workshop on “Regulating carbon markets: building capacity for the Implementation of Article 6 of the Paris Agreement”, that was held from 14 to 16 May 2024 in Victoria Falls, Zimbabwe. This workshop was organized by the African Climate Policy Centre of the ECA, in collaboration with the AGN and the Government of Zimbabwe. The workshop was motivated by the increasing interest in carbon markets in Africa against a background of lack of clarity on operationalization of the rulebook for the implementation of Article 6 Paris Agreement and the need to provide technical backstopping to the AGN ahead of the SB60 meetings.
The AU Commission led by the Department of Economic Development, Trade, Tourism, Industry, Mining (ETTIM), is organising the 7th Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning and Integration under the theme, “Enhancing Macroeconomic and sectoral policies coordination in Africa: challenges, opportunities and policy priorities for inclusive growth and sustainable development”. The lack of coordination between macroeconomic and sectoral policies is reducing Africa’s ability to achieve inclusive 7 to 10 percent growth and sustainable development as encapsulated in Agenda 2023.
African Union celebrates the 10th Anniversary of the adoption of the Malabo Protocol (AU)
The Protocol on Amendments to the Protocol on the Statute of the African Court of Justice and Human Rights (Malabo Protocol) was adopted by the Twenty-third Ordinary Session of the Assembly, held in Malabo, Equatorial Guinea, on 27th June 2014, to play a key role in combating impunity in Africa. The Protocol extends the jurisdiction of the pending African Court of Justice and Human Rights (Merged Court) to a wide variety of crimes under international law and transnational crimes, including, but not limited to, the core crimes such as genocide, war crimes, crimes against humanity and crimes of aggression and new categories of “international crimes” such as corruption and the illicit exploitation of natural resources.
The adoption of the Malabo Protocol represents a significant step in the broader initiative to enhance accountability for international and transnational crimes. While the establishment of the International Criminal Court (ICC) and the refinement of national judicial frameworks have, to date, advanced these efforts, effective accountability, especially within the continent, often remains elusive. By granting jurisdiction to the Merged Court over a broad spectrum of international crimes, the Malabo Protocol establishes a regional mechanism that will complement and enhance global efforts while asserting African ownership within the international justice landscape.
Against this context, it is vital to reinvigorate conversations about the Protocol and intensify efforts toward its ratification.
Where does India stand in Africa’s $3 trillion opportunity? (The Economic Times)
The world community must end its monopoly on technology and ensure access for all, reiterated Indian Prime Minister Shri Narendra Modi at the recently concluded G7 Summit in Apulia, Italy. Discussions during the outreach session included a range of topics such as AI, critical and emerging technologies, energy, and the Mediterranean. However, the spotlight remained on the India–Africa relationship and the significance of the ‘global South.’
PM Narendra Modi reiterated India’s commitment to fostering closer ties with Africa by stressing the untiring efforts put in by India to include the African Union as a permanent member of the G20. This occurred during India’s presidency last year.
Six of the world’s ten fastest-growing economies are currently located in Africa. The continent is home to over 400 companies with revenues surpassing $1 billion, having a collective revenue of over $1 trillion. Household consumption is increasing at a remarkable 3.9% annual rate and is projected to reach $2.5 trillion by 2030. All this is underpinned by steady population growth, increasing urbanisation, and rising incomes. Resource-rich nations are demanding local value addition and domestic manufacturing. With the gradually diminishing influence of China, Indian companies are seen as more preferable partners and business collaborators, giving them precedence in dealing with governments and local corporations.
Delegations from dozens of countries have arrived in the Russian city of Khanty-Mansiysk for the XV International IT Forum with the participation of BRICS and SCO countries. The event is being organised under Russia’s chairmanship of BRICS in 2024. TV BRICS is the international media partner of the event.
Russian Foreign Minister Sergey Lavrov delivered a welcoming speech at the forum’s opening ceremony. He spoke about the projects concerning interstate co-operation in the digital sphere.
At the plenary discussion “Trust in the Digital World”, which opened the forum, the participants discussed issues of interstate cooperation in the era of technological development, including the creation of digital platforms in key sectors of the economy.
Zimbabwe eyes BRICS membership for trade boost (Al Mayadeen)
At a BRICS international forum in Vladivostok on Monday, Zimbabwe’s Minister of Defense Oppah Muchinguri-Kashiri announced that the country is prepared to become a member of the BRICS group of nations. Muchinguri-Kashiri noted that joining the group would enhance opportunities for free trade with other member states, as reported by Zimbabwe’s state-owned daily, The Herald.
“Zimbabwe, like many of the other countries represented here, has strong conviction in BRICS’ potential to counterbalance Western powers’ dominance by challenging their unilateral decision-making and promoting a more balanced global landscape,” the minister said. Less than two weeks following Zimbabwean President Emmerson Mnangagwa’s declaration to TASS at the St. Petersburg International Economic Forum (SPIEF), Defense Minister Muchinguri-Kashiri’s remarks demonstrate Zimbabwe’s readiness to join BRICS.
G20 advances consensus on reforming Multilateral Development Banks and broadening discussions on foreign debt (G20 Brasil 2024)
In Fortaleza, the G20 agreed to include debtor countries in discussions on foreign debt and to reform the Multilateral Development Banks (MDBs) to enhance investment capacity in Global South countries. Brazilian proposals on exchanging debts for investments and including debt suspension clauses for extreme weather events were also discussed.
“We have reinforced the consensus by incorporating the perspectives of debtor countries into the traditional creditor-focused consultations. Brasil has introduced innovative proposals, such as debt-for-investment exchanges to alleviate the debt burden for debtor nations, and debt suspension clauses in the event of climate disasters,” explained Ambassador Tatiana Rosito, coordinator of the G20 Finance Track.
The Ambassador emphasized that the meeting, which included African experts and representatives from Benin, Kenya, Nigeria, the African Development Bank, and G20 member countries, was “an important step in building a global consensus on financial and development issues.”
Sustainable Development Report calls for a UN Parliament, goals off track (Democracy Without Borders)
This week, on June 17, the UN Sustainable Development Solutions Network (SDSN) published their annual Sustainable Development Report which evaluates and ranks the performance of UN Member States on the Sustainable Development Goals (SDGs) since 2015.
The report notes that “the UN needs significant upgrading” and calls for the establishment of a United Nations Parliamentary Assembly (UNPA) constituted “by representative members of national parliaments”. In a “first instance”, the report points out, the new body could be created by the UN General Assembly as a subsidiary body. But ultimately, “the UN Charter will need to be revised and updated to reflect 21st century needs and realities”, the document says.
As financing sustainable development remains a critical challenge, the report includes an urgent call for reforming the global financial architecture. It notes that low and middle-income countries need access to affordable long-term capital to invest in sustainable development. One of the proposals is “to institute global taxation, for example, on CO2 emissions, air and sea travel, financial transactions, and other international goods and ‘bads,’ in order to mobilize sufficient global resources to provide the necessary global public goods.”
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Yes, there are problems at SA ports, but World Bank report not entirely accurate (Engineering News)
The newest World Bank Container Port Performance Index (CPPI) report, which places a number of South African ports at the bottom of the list, covers the crisis-ridden 2023 period, and does not take into account the corrective action taken since Transnet has been under new management as part of a recovery and transformation strategy, says Southern African Association of Freight Forwarders (SAAFF) CEO Dr Juanita Maree.
“To contextualise, this was a period at the height of the crisis. The timing of its release unjustifiably tarnishes today’s developments, casting doubt on the efficacy of robust corrective action underway and the hard work of the recovery teams and the leadership of the National Logistics Crisis Committee – a strong strategic public-private consultative initiative by government that serves as the anchor,” says Maree.
“At the same time, we must acknowledge that there are valid points in the report, and we must not simply dismiss it, but rather constructively use it as another building block and join hands to ensure that we improve our container port performance.”
Luxury seafood products sourced in South Africa are predominantly exported to consumers in east and southeast Asia. Many of the species involved are CITES-listed – protected under international trade regulations – and are associated with either social status or traditional medicinal beliefs in consumer markets such as Viet Nam and China, and mostly consumed for food as rare delicacies. The combination of poor fisheries management, online anonymity, and lax monitoring of online adverts can facilitate the illegal trade in protected species.
Further investigation into businesses posting marine products online is essential if we are to curb this potential trend of illegal online trade in protected marine species,” said Oliver Wright, TRAFFIC Southern Africa project officer and author of the report.
The illegal trade in shark fins and abalone from South Africa is well documented, and persists despite numerous interventions from law enforcement. Abalone fisheries have all but collapsed in South Africa, with control of wild caught South African abalone in the hands of ruthless criminal syndicates.
The rising popularity and ease of online trade in the region poses another major threat to already-threatened marine populations. Online trade is difficult to investigate given proof of sale is harder to establish. Laws relating to e-commerce rarely prohibit the advertising of illegal wildlife and more often apply only to actual sales, which are more challenging to uncover if transactions are arranged through private messaging.
Botswana may fall short of 4.2% growth target (Engineering News)
Botswana’s economy may fall short of the government’s 4.2% growth target for this year, a senior central bank official said on Tuesday, citing global and domestic constraints. Finance minister Peggy Serame made the projection for a 4.2% increase in GDP in a budget speech in February, saying the government expected growth to accelerate from 2023 due to an improved performance in the diamond sector. Gross domestic product grew 2.7% in 2023. However, Botswana’s mining sector, which is dominated by diamonds, is still struggling, reflecting sluggish market conditions globally.
“From what we have seen in the first half of the year, unfavourable global economic conditions ... as well as domestic structural constraints, one would expect that we are unlikely to attain the projected economic growth,” Innocent Molalapata, the central bank’s director of research and financial stability, told an economic briefing. “A downward revision of the growth target might therefore be required,” Molalapata said, adding that mining output contracted roughly 27% in the first quarter.
Hundreds of Kenyans march in protest against controversial finance bill (CGTN Africa)
Some major tax proposals in the bill were dropped after a Tuesday morning meeting between ruling party lawmakers and President William Ruto. “We are going to end up with a product in Parliament that came from the Executive and has been interrogated by the Legislature. Through public participation, the people of Kenya have had a say,” Ruto said.
Among the dropped items were the proposed 16 percent value-added tax on bread, transportation of sugar, financial services, foreign exchange transactions, and the 2.5 percent Motor Vehicle Tax. Additionally, there will be no increase in mobile money transfer fees, and Excise Duty on vegetable oil has also been removed. According to an official statement, the proposed Eco Levy will only be imposed on imported finished products that contribute to e-waste and thus harm the environment when they are no longer in use.
Kenyan legislators are set to begin debating the bill on Wednesday, with the vote planned for Monday.
FG seals $3.5 billion deal with Afreximbank for textile industry, CNG Vehicles, others (Nairametrics)
The federal government has announced a $3.5 billion agreement with Afreximbank to enhance the textile industry and promote the use of Compressed Natural Gas (CNG) vehicles, among other initiatives. The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, made this disclosure in a statement on X on Tuesday. Uzoka-Anite said the deal was signed with the international financial institution during 31st Afreximbank Annual Meeting in Nassau, The Bahamas.
In earlier statement, the Minister said the federal government is seeking to attract $3.5 billion in investments to enhance Nigeria’s textile, cotton, and apparel sector in Nigeria in one year. She said this investment is part of the ministry’s initiative to rejuvenate the long-dormant textile industry. She also noted that Nigeria’s textile sector encompasses the complete clothing value chain in the country. According to the minister, investment in the textile industry will generate employment for both skilled and unskilled labour across Nigeria.
Poor power supply, decaying seaport facilities impeding trade - Bello-Koko (Daily Trust)
The Managing Director (MD) of the Nigerian Ports Authority (NPA), Mr Mohammed Bello-Koko, has outlined some of the problems affecting the efficiency of the nation’s seaports to include multiplicity of government agencies, decaying facilities and inadequate power supply. The NPA boss explained that all the outlined problems were barriers impeding foreign trade.
The nation’s total imports for 2023 stood at N35.9trn, while total exports were N35.9trn. Nigeria posted a slim trade surplus of just N2.8trn in March, 2024. Bello-Koko said NPA was determined to see the country’s trade rise above what was recorded in 2023 by the time all barriers were eliminated.
Speaking as a panelist at the Business Day Conference on Nigeria’s Maritime with the theme: “Unlocking Potentials and Overcoming Challenges”, he emphasised the significant trade barriers in Nigeria. Bello-Koko said, “As a government agency vital to the nation’s economic revival, we are committed to addressing these trade barriers and implementing measures to revitalise and strengthen the economy.
“Our focus is on automating the port system to streamline trade, minimise congestion and reduce idle time. The Port Community System is a critical milestone in our journey to this automation, which has the potential to revolutionise port operations. “We aim to modernise our ports to regain lost transit and transshipment of cargo to neighbouring ports and tackle bottlenecks in our export processes through strategic initiatives like the Export Processing Terminals (EPT).”
Ethiopian coffee booms despite looming EU regulation (Addis Standard)
Ethiopia’s coffee industry is experiencing a robust year, with exports reaching a staggering $1.2 billion in the past 11 months, according to the Coffee and Tea Authority. This revenue stems from the export of 252,446 tons of coffee to international markets. Adugna Debela, Director General of the Authority, noted, “Ethiopia has a high chance of surpassing the all-time high revenue obtained two years ago” from coffee exports.
However, the future of Ethiopian coffee exports faces uncertainty due to the European Union’s upcoming Deforestation-Free Regulation (EUDR). The EU, a crucial market for Ethiopian coffee, accounts for roughly 30% of annual sales. The new regulation, set to take effect on December 30, 2024, will impose stricter requirements on Ethiopian exporters, potentially impacting this significant revenue stream.
Senegal outlines plan for robust digital public infrastructure development (Biometric Update)
The new Director General of the structure managing Senegal’s digital ecosystem, Isidore Diouf, says he will make the development of a sturdy digital public infrastructure (DPI) one of his priorities as he takes office. Diouf was recently appointed to manage Senegal Numérique SA – the government body overseeing the country’s digital development efforts. He said he will work to build on the digital gains made by his predecessor in order to actualize the digital policy and vision of President Bassirou Diomaye Faye, We Are Tech Africa reports.
Diouf takes over from Cheikh Bakhoum, who piloted the institution for almost ten years, with efforts to make it a model for digital in West Africa. Faye had promised during his presidential campaign to set the country on the rails of rapid digital transformation once elected. Among other things, Diouf says he will prioritize actions that seek to widen Senegal’s digital economy and make it contribute more to the country’s GDP. The contribution of the digital economy is currently valued at around 3.3 percent but the government aims to take this up to 10 percent as outlined in the Senegal Digital Strategy 2025.
Working Party Chair meets Somalian President to discuss WTO accession, Trade for Peace (WTO)
The Chair of the Working Party on the Accession of Somalia, Ambassador Nina Tornberg of Sweden, met President Hassan Sheikh Mohamud of the Federal Republic of Somalia on 14 June in Lucerne, Switzerland, to discuss the country’s WTO accession process. At a roundtable discussion, President Mohamud pledged Somalia’s commitment to moving the accession process forward and stressed the importance of trade in promoting peace and stability in the country.
The accession process of Somalia started in December 2016 with the establishment of a Working Party. Somalia submitted the Memorandum of its Foreign Trade Regime in May 2020. Ambassador Tornberg was appointed as Chairperson of the Working Party in December 2023. Ambassador Tornberg congratulated the President on recent milestones achieved by Somalia, which include the debt relief of US$4.5 billion under the Heavily Indebted Poor Countries (HIPC) initiative, the accession to the East African Community (EAC) as well as the lifting of the arms embargo and the election to the United Nations Security Council.
‘ECOWAS module on region’s economic prosperity, not successful’ (The Guardian Nigeria)
The Chairman of the House Committee on Diaspora Affairs, House of Representatives, Tochukwu Okere, said that the primary objective of the Economic Community of West African State (ECOWAS) module for the economic prosperity of the region, though laudable, has not been entirely successful. He said that the loss of focus is responsible for the apparent multidimensional poverty and fast-expanding insecurity in the sub-region.
Speaking on ‘Trade Conundrum: Expanding Understanding of ECOWAS Module as Catalyst To Prosperity In Sub-Saharan Africa,’ during the 15th Anniversary of Nigerian Eye Newspaper Lecture in Accra, Ghana, Okere said the revised Article of the Commission in 1983, clearly stated that the Community was founded to “promote co-operation and integration, leading to the establishment of economic union in West Africa to raise the living standards of its people, ensure growth, foster relations among member states and contribute to the progress and development of the African continent.
According to him in 2022, the total trade volume, including imports and exports, intra-community trade in the ECOWAS region was just $277.22 billion according to data sourced from the Trade Information System (ECOTIS). This volume of trade, according to the President of ECOWAS, Omar Touray, was considered far below the sub-region’s estimated trade potential. He observed that this intra-community trade stood at 12 per cent compared to other regions that were fully integrated and that have consistently recorded as high as 60- 70 per cent in intra-community trade is unacceptable.
African states defy global shocks to grow trade (The Star)
In its latest report titled ‘A Resilient Africa: Delivering Growth in a Turbulent World’, the lender says African economies face several downside risks, including increasing levels of sovereign debt, associated sustainability risks, and excessive exposure to adverse terms-of-trade shocks. Other risks include escalating geopolitical tensions in some cases, volatile domestic political environments in certain African countries, high commodity prices and inflationary pressures, and potential food insecurity.
The report, that analyses the economic environment, trade patterns, debt scenarios, and future projections for African economies, shows that the continents economies will grow on average by 3.8 percent in 2024 slightly outpacing the predicted global growth of 3.2 percent. According to the report, the growth is expected to maintain the upward curve reaching four percent in 2025.
Afreximbank group chief economist and managing director Yemi Kale said ongoing global challenges undermined the performance of Africa’s trade, decreasing it by 6.3 percent in 2023, down from 15.9 percent in 2022. However, intra-African trade expanded by 3.2 percent over the same period, Kale noted.
“This performance is reflective of the resilience of the African economy and the potential impact of the African Continental Free Trade Area’s (AfCFTA) single market for the continent as a tool to protect them from global shocks,” Kale said. “Our analysis in the report also revealed large untapped potential in intra-African trade, especially in machinery, electricity, motor vehicles, and food products,” he continued.
Prime Minister Philip Davis’s Vision for Global Africa: Charting a Path to Economic Empowerment (Afreximbank)
The Honourable Philip Davis, Prime Minister of the Bahamas, delivered a stirring speech at the Afreximbank’s annual meetings in Nassau, Bahamas, articulating a vision for “Global Africa” that transcends geographical boundaries to unite African and Caribbean nations in economic prosperity and self-determination. “Global Africa” is a movement that celebrates the shared heritage and potential of African and Caribbean nations. This vision, underscored by initiatives like the African Continental Free Trade Agreement and regional economic summits, aims to empower over 2 billion people of African descent worldwide to define their economic destiny on their own terms.
Mr Davis outlined a blueprint for financial integration between Africa and the Caribbean, emphasizing collaboration in banking systems, digital finance, and regulatory frameworks. He highlighted the Bahamas’ leadership in pioneering initiatives like the Sand Dollar, the world’s first central bank digital currency, as a model for enhancing financial inclusivity and resilience across the regions.
BRICS expansion offers opportunity to boost African trade, say experts (African Business)
The expansion of the BRICS bloc offers African countries an opportunity to trade value-added and intermediate goods with the world and move away from the trade in raw commodities, according to experts at a BRICS roundtable. In January, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates joined the emerging markets economic bloc originally comprised of founding members Brazil, Russia, India, China and South Africa.
At a business breakfast hosted by Brand South Africa and the South African chapter of the BRICS Business Council during the African Development Bank (AfDB) annual meetings in Nairobi in May, experts focused on how the expansion of BRICS to include five new countries offers an opportunity to bolster trade and investment in Africa. The new formation, dubbed BRICS+, accounts for around 40% of crude oil production and exports, one-quarter of global GDP, two-fifths of global trade in goods, and nearly half of the world’s population, according to the Boston Consulting Group (BCG).
Stavros Nicolau, a member of the BRICS Business Council in South Africa, highlighted the opportunities presented by the expansion. Nicolau emphasised that Africa’s trade deficit with both the original BRICS countries – particularly China – and the new additions can be addressed by adding value to raw materials and traded goods.
See: An Evolving BRICS and the Shifting World Order (BCG)
Malaysia Is Planning to Join BRICS, Anwar Says Ahead of Li Visit (Bloomberg)
Malaysian Prime Minister Anwar Ibrahim said that the Southeast Asian nation will join the BRICS economic bloc, becoming the latest country to take part in an expanding group seen challenging the western-led global order. “We have indicated as a policy that we are” joining, Anwar said in an interview with the Chinese news outlet Guancha aired ahead of a scheduled visit by Chinese Premier Li Qiang to Malaysia. “We have made a decision. We are placing the formal procedures soon.”
Report: As African Apparel Imports Dwindle, the Time for AGOA Renewal is Now (Yahoo Finance)
The clock is officially ticking on the Africa Growth and Opportunity Act (AGOA), and uncertainty about the trade preference program’s future is already eroding U.S. imports from sub-Saharan African (SSA) nations.
Office of Textiles and Apparel (OTEXA) data from April revealed a concerning trend: imports from AGOA beneficiary countries decreased by more than 23 percent in value and nearly 22 percent in quantity compared to the same period last year. In a study released this week, Sheng Lu analyzed the region’s capabilities and capacity to take on more apparel sourcing from Asia as China continues to shed market share. “The SSA region was often regarded as one of the most popular alternative sourcing destinations thanks to its large population, relatively low labor costs, and shorter shipping distance to U.S. ports compared to most Asian [sourcing hubs],” he wrote.
But despite the U.S. government’s aim to boost trade with Africa through the creation of AGOA 24 years ago, growth has been slow-going. The trade deal, which allows a multitude of products from nearly three dozen sub-Saharan African countries to enter the U.S. duty free, creates substantial financial incentives to source from members, but “empirical trade data shows that U.S. apparel imports from SSA members have stagnated over the past decades without evident growth,” the report said.
Geopolitical uncertainty, trade restrictions and divergence on AI ‘biggest risks’ to growth for global companies (CXOToday.com)
The findings in KPMG’s Top risks forecast: Bottom lines for business in 2024 and beyond shine a light on the multifaceted, complex challenges facing companies looking to grow internationally at a time of increasing divergence on regulation, conflict, technological advancement and political uncertainty. The report’s analysis identifies the three most critical risks for businesses right now, known as ‘bottom lines’, likely to impact operations this year and beyond: Trade policy restrictions, Vulnerability calls for operational resilience, and AI Governance Gaps.
Global trade restrictions have been on the rise, with approximately 3,000 restrictions imposed, nearly tripling since 2019. This trend of protectionist trade policies poses challenges for organizations operating in international markets. Such restrictions can create barriers and hinder economic growth, affecting supply chains and market access. Organizations should be prepared to navigate these trade policy restrictions and explore alternative strategies to mitigate potential disruptions.
See also from KPMG: Supply chain trends 2024: The digital shake-up
‘Without nuclear, it will be almost impossible to decarbonize by 2050’, UN atomic energy chief (UN News)
The issue of spent fuel, the highly radioactive waste produced by the process of producing energy in nuclear power plants, has also been periodically raised as a cause for concern. But the image of nuclear power got a boost at the 2023 UN climate conference in Dubai (COP28), when 198 countries included nuclear energy in the list of low emission technologies that need to be scaled up if we’re to end our reliance on fossil fuels.
Ahead of an international conference on the safe management of spent fuel, UN News spoke to Rafael Mariano Grossi, the Director General of the International Atomic Energy Agency (IAEA) to discuss the growth of nuclear energy, and the difference the COP28 declaration is likely to make to the way it is perceived.
Rafael Grossi At the moment there is no international financing for nuclear, partly because of policies that are hostile to the technology. But that is starting to change, and international financial institutions are starting to review these policies. We are seeing the growth of nuclear energy in the global South, from India and China, to Argentina, Brazil, Mexico, Bangladesh, and South Africa. Several African countries are interested, due to the development of small modular reactors, which are more affordable.
Increasing energy investment in Africa is vital for the continent’s sustainable economic growth (IEA)
Meeting growing energy demand in Africa requires a surge of spending on clean energy projects, with swift action to tackle financial barriers so investment can reach the levels that are needed, according to a new report from the International Energy Agency (IEA). The report, Clean Energy Investment for Development in Africa, supports a flagship initiative launched by Italy’s G7 Presidency at the Leaders’ Summit in Apulia. Called Energy for Growth in Africa, it aims to help foster a strong pipeline of bankable clean energy projects in Africa and to improve access to financing so the projects can come to fruition, with an emphasis on technical assistance and capacity building.
According to the report, meeting Africa’s rising energy needs, as well as the energy access, climate and development goals set by governments in the region, requires annual energy investment to more than double to over $240 billion by 2030, with around three-quarters going to clean energy.
SDSN Releases the Sustainable Development Report 2024 (Sustainable Development Solutions Network)
None of the seventeen Sustainable Development Goals (SDGs) are on track to be achieved by 2030, and only an estimated 16% of the SDG targets are progressing, reveals the 9th edition of the Sustainable Development Report (SDR) released on 17 June 2024 by the UN Sustainable Development Solutions Network (SDSN).
Professor Jeffrey D. Sachs, President of the SDSN and a lead author of the report, emphasizes the following: “Midway between the founding of the UN in 1945 and the year 2100, we cannot rely on business as usual. The world faces great global challenges, including dire ecological crises, widening inequalities, disruptive and potentially hazardous technologies, and deadly conflicts, we are at a crossroads. Ahead of the UN’s Summit of the Future, the international community must take stock of the vital accomplishments and the limitations of the United Nations system, and work toward upgrading multilateralism for the decades ahead.”
Quick links
Africa’s trade paradox: A tale of exporting raw and importing processed (Businessday NG)
The Power of Working as One: Connecting the Small Island Developing States (UNDP)
US cheats more than China on free and fair trade (Asia Times)
The 1.5°C Target for Global Warming Must Prevail (Project Syndicate)
Strong Electric Utilities Critical to Clean Energy for All (World Bank)
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South Africa ships prepaid meters and mining products under AfCFTA (City Press)
South Africa has exported four shipments of prepaid electricity meters, household appliances, and mining products for ore milling to other African countries since the end of January under the African Continental Free Trade Agreement (AfCFTA), which aims to promote intra-continental trade. The Department of Trade, Industry and Competition states that the goods were exported to Kenya and Ghana, and it is awaiting confirmation from more businesses that want to export to take advantage of the benefits under the AfCFTA.
SA’s agricultural trade surplus rockets, surpasses $3b in Q1 (Food For Mzansi)
South Africa’s agricultural sector has demonstrated robust performance in the first quarter of 2024, with recent trade data revealing a substantial trade surplus, driven by a surge in exports. Wandile Sihlobo, chief economist at Agbiz, highlighted that the sector recorded a trade surplus of $1.4 billion, marking a notable 20% increase from the same period last year.
He underscored the pivotal role of efficient logistics in maintaining this growth trajectory. “Efficient logistics are the lifeblood of SA agriculture and other exporting sectors of the economy,” he said, stressing the need for ongoing collaboration between Transnet, organised business, and agricultural stakeholders to enhance port efficiencies. He referenced challenges faced by the deciduous fruit industry earlier in the year at the Port of Cape Town, affirming the necessity for continuous improvement.
Probably more diamond industry uncertainty now than at any other point (Engineering News)
While the diamond sector probably has more uncertainty now than at any other point, participants also probably have a bigger opportunity than ever to shape what the future will look like. “One thing’s for sure, the way the industry has operated over the last decade is not going to be the way it operates in the next decade.
“It’s going to require quite a lot of close analysis and assessment and strategy to chart the industry into a new era,” Gemdax co-founder and partner Anish Aggarwal emphasised in a Zoom interview with Mining Weekly.
Structural issues need to be addressed, alternative business models are under consideration, major contemplation is being devoted to future marketing, eyes are on what will become of De Beers, a trophy South Africa-grown asset now being guided into new ownership, the rough diamond sales model is coming under new evaluation, and midnight oil is being burnt on how more value can be extracted and how more upside can be created.
Nigeria’s free trade fruit rots on the vine (Businessday NG)
Nigeria is not making the most of opportunities to earn scarce dollars by tapping free trade agreements to which it is a signatory, falling behind regional peers who are seizing the chance to boost non-oil exports.
After 24 years of the African Growth And Opportunity Act (AGOA) which allows over 6,000 products to be exported to the US, duty-free, till 2025, Nigeria is yet to raise its export substantially to the world’s biggest economy. Nigeria’s export was mainly dominated by crude oil and its non-exports have remained stagnant, primarily comprising a few agricultural products and handicrafts.
Obiora Madu, an export consultant and the director-general of the African Centre for Supply said Nigeria’s failure to maximise free trade benefits is based on its non-export culture and capacity. Read also: US Mission in Nigeria is particular about the future of Africa trade – Julie Le Blanc “We have failed to utilise our free trade agreements to grow our non-oil exports because we have never been intentional and have no export culture,” he said. Madu stressed the need for the government to build an export culture and capacity needed to boost non-oil exports and harness opportunities in its free trade agreements.
WTO to support Uganda on AfCFTA to work better (New Vision)
The Minister of Foreign Affairs Jeje Odongo has held a bilateral meeting on with Dr Ngozi Ikonjo-Iweala Director-General of the World Trade Organization at the WTO Headquarters in Geneva. Odongo was accompanied to the meeting by the Permanent Representative of Uganda to the UN in Geneva, Amb. Marcel Tibaleka and officials of the Mission.
Inquiring about opportunities for WTO to support the African Continental Free Trade Area (AfCFTA), Odongo said that Uganda believes it presents one of the greatest opportunities for impactful technical cooperation with Africa, and asked what more the WTO could do to support the AfCFTA and regional economic integration in general.
On her part, Dr. Ngozi emphasized the importance of diversifying the economy to make the AfCFTA work better because trade within the continent is just 15% and external trade is just 3%. She noted that Uganda was on the road to starting producing fossil fuels but said there were also opportunities in renewable energy such as green hydrogen.
IFAD, FlexiPay campaign eases remittances to Uganda (The Independent)
Ahead of the International Day of Family Remittances on Sunday, the UN’s International Fund for Agriculture Development (IFAD) has launched a new program to ensure easier transmission of money from other countries into Uganda. In a partnership with FlexiPay, a digital payment platform of Stanbic Bank, and regional remittances operator, Upesi Money Transfer, aims to enable customers to send and receive money from abroad with ease
In its recent reports, the World Bank indicates that Uganda registers about 1.43 billion dollars (5.32 trillion Ugandan Shillings) annually from the estimated 2 million Ugandans working abroad.
According to David Berno, Remittances and Inclusive Digital Finance Officer at IFAD, remittances play a crucial role in reducing poverty and enhancing food security in developing countries. He said that they joined the campaign to facilitate remittances because money remittances enable families to meet their basic needs, such as food, shelter, and education, and can also contribute to local economic growth through increased consumption and investment.
Ministry Looks To Excise Stamps To Boost Tax Revenue, Curb Illicit Trade (The Reporter Ethiopia)
Officials at the Ministry of Finance have introduced a new excise stamp management directive in a bid to combat illicit trade and enhance tax collection. The directive mandates the use of digital or physical excise stamps on a range of goods, including alcoholic beverages, tobacco products, and bottled water, as officials look to ensure proper tax compliance. They hope to create a robust excise assurance system that will facilitate the enforcement of excise tax laws, enhance transparency and accountability, and track and trace the production and distribution of excisable goods.
The Ministry is hoping that the implementation of excise stamps will contribute to the proper collection of excise tax and prevent illicit trade. According to the directive, excise stamps must be affixed to compounded spirits, alcoholic and non-alcoholic beer, wines, fortified wines, ready-to-drink alcoholic products, cigarettes, tobacco products, bottled water, and non-alcoholic, carbonated beverages, including sugar-sweetened beverages, with the mandate to retain the right to specify additional goods requiring excise stamps in the future.
The directive outlines specific requirements for excise stamps including the incorporation of a Unique Identifier (UI) to deter counterfeiting, facilitating the tracking of stamps and excisable goods along the supply chain, and enabling the verification of stamp authenticity. “The stamps must comply with the ISO/IEC 15459-2:2015 standard and should be designed to allow the recording of movements of excisable goods throughout the supply chain,” it reads.
Sea freight charges up 500pc on delays, longer routes (The East African)
An acute container shortage in China is driving global freight charges high, prompted by ships taking the longer route around the Cape of Good Hope instead of the Suez Canal, where Yemeni fighters, Houthi, have disrupted marine transport. Traders in Kenya have raised concerns over the sharp increase in sea freight charges, paying some shipping lines Ksh1,113,500 ($8,500) for a 40ft container from China to Kenya, from Ksh222,700 ($1,700) in April – a 500 percent rise.
Shippers Council of Eastern Africa acting Chief Executive Officer Agayo Ogambi warned of serious cargo supply disruption: “Ocean carriers are skipping ports or decreasing their time at port and not picking up empty containers, in an effort to keep vessels on track for delivery.” This has affected Kenyan exports, with tea and coffee piling up at warehouses. Exporters in Mombasa say about a quarter is held up due to delays in shipping schedules for 2-3 weeks due to longer routes.
“Ship turnaround time has remained a challenge as some shipping agents with contracts with tea exporters have either delayed picking up tea at the Mombasa port or suspended their trips. This has seen the volumes of the tea exported to Russia and neighbouring countries such as Kazakhstan, Kyrgyzstan, Uzbekistan and Azerbaijan significantly dwindle,” East African Trade Association managing director George Omuga said.
China loans delay plunges Eacop partners in crisis (The East African)
More than a year since Chinese financiers and the developers of the East African Crude Oil Pipeline (Eacop) entered negotiations to bankroll the project’s debt, a massive hole remains in the financing structure as the loans amounting to about $3 billion are not imminent, forcing shareholders into emergency measures to raise additional equity funding.
TotalEnergies executives said last month that the project’s physical works were at 33 percent, as at the end of April. Thermally insulating the line pipes, stringing and laying of line pipes, and building pump stations, are all to be done before the first oil target late next year.
With the $2 billion equity funds raised by Eacop shareholders depleted, the project developers are faced with a cash crisis to plug the funding gap, which threatens to see ongoing physical works on the project stall by July 1, officials said.
High taxes and debt threaten EA growth (Nation)
East Africa’s finance ministers on Thursday tabled a raft of measures for expanded expenditure plans for the 2024/2025 fiscal year with a keen eye on debt repayment and reliance on domestic revenues to run government operations. These measures effectively set the stage for increased taxation, which will potentially choke economic growth in the region.
East Africa’s economic growth is projected to pick up from 3.5 percent in 2023 to 5.1 percent in 2024 and 5.7 percent in 2025, according to the African Development Bank, buoyed by infrastructure development and increased regional trade. But tax experts and industry players warn that the heavy taxation policies will hurt household and business spending and stifle the projected economic growth rates.
In their budget speeches, the region’s finance ministers allocated substantial amounts to key sectors of the economy -- roads and rail infrastructure, energy, health, security, education and agriculture -- to help sustain fragile economies weighed down by domestic and global shocks.
Download the Budget Speeches delivered on 13 June 2024:
Northern Corridor truckers mull shift to Dar over tax (The East African)
The cost of transporting cargo on the Northern Corridor is set to increase in the next financial year if Kenya’s proposed motor vehicle tax of 2.5 percent of the vehicle’s value is implemented. Vehicle owners will be required to pay tax on each vehicle at the time of issuance of insurance cover with a minimum of $39 (Ksh5,000) without a cap, based on make, model, engine capacity and year of manufacture. Already, key Mombasa port users have raised concerns over the tax, and are mulling seeking cheaper services in the neighbouring countries.
“We gave our recommendations on the Finance Bill but we were shocked to see the motor vehicle tax not scrapped. I will not pay the tax, so I am planning to relocate to Tanzania,” said Hussein Abdi, a truck owner. Transporters, shippers and clearing and forwarding agents also said they will seek shipping services in Tanzania, which is considered more business-friendly. The port users argue that the Dar es Salaam port charges less than two percent import declaration levy and traders are exempted from transport charges, which have been introduced in Kenya.
The Shippers Council of Eastern Africa (SCEA) and Kenya Transporters Association (KTA) said the increase of Import Declaration Fees (IDF) and proposed 2.5 percent circulation tax on vehicle value would lead to reduced competitiveness of Kenyan exports. Transporters using the Northern Corridor have been bearing high costs.
Burkina Faso: IMF Executive Board Concludes 2024 Article IV Consultation (IMF)
Burkina Faso faces multiple development challenges, including heightened security conditions, climate change, and food insecurity. This complicates efforts to combat food insecurity and forced displacement, while also disrupting economic activity, especially in the agriculture, livestock, and mining sectors. Following a modest GDP recovery of 3.6 percent in 2023, up from 1.8 percent in 2022, growth is projected to accelerate to 5.5 percent in 2024, buoyed by the expectation of improvements in the security situation. However, medium-term growth remains below potential.
In January 2024 the authorities decided to exit the Economic Community of West African States (ECOWAS) but reaffirmed their commitment to their membership in the West African Economic and Monetary Union (WAEMU), which should help support domestic and regional economic stability. The authorities are also committed to a capacity development agenda supported by the IMF and other partners to further enhance fiscal governance and transparency.
Federal Republic of Somalia reaffirms commitment to East African Community integration (EAC)
The Federal Republic of Somalia has reaffirmed its commitment to integrating into the East African Community (EAC), demonstrating strong participation in a pivotal regional meeting currently underway in Nairobi, Kenya. The one-week meeting, attended by EAC Partner State delegates, aims to develop a comprehensive roadmap for Somalia’s integration into the EAC.
Speaking during the opening ceremony, the EAC Secretary General, Ms. Veronica Mueni Nduva, highlighted the historical context and importance of the roadmap for Somalia’s integration into the bloc. “The Federal Republic of Somalia became a full member of the EAC in March 2024, after officially depositing her instrument of ratification of the Treaty of Accession with the EAC Secretary General in Arusha, Tanzania. Today’s meeting signifies a critical milestone in this journey, aligning Somalia’s national processes with regional frameworks to ensure comprehensive integration,” she said.
His Excellency João Manuel Gonçalves Lourenço, President of the Republic of Angola and Chairperson of the Southern African Development Community (SADC) has acknowledged the SADC’s remarkable achievements and called for sustained progress towards the realisation of a strong, industrialised and fully integrated SADC.
To accelerate regional integration, the SADC Chairperson emphasised the need to streamline procedures to ensure the smooth functioning of the SADC Free Trade Area (FTA) with the view to increase intra-regional trade and achieve economic development of the region.
On infrastructure development in support of regional integration, the SADC Chairperson called for the development of robust infrastructure and improvement of already existing infrastructure to allow the interconnectedness among SADC Member States for them to derive the full benefits of regional integration and shared prosperity. He cited the signing of the Lobito Corridor by the Governments of Angola, Democratic Republic of Congo and Zambia as a classic example of cooperation among SADC Member States to facilitate the movement of goods to increase trade and boost economies of the three countries.
Economic Barometer for the Central African Economic and Monetary Community (World Bank)
Growth in the CEMAC region decelerated to 1.7% in 2023, down from 3.1% in 2022, due to a significant decline in oil activity in Equatorial Guinea and lower growth in Gabon, as transport disruptions affected mining and wood production in the country. Conversely, economic activities in the other CEMAC countries expanded, driven by higher oil production and investment in Chad, the non-hydrocarbon sector in Congo, services, manufacturing and agriculture sectors in Cameroon, and higher production of gold and timber and sawn wood production in the Central African Republic.
Lower global oil prices had negative impacts for CEMAC’s trade, fiscal position, and regional reserves, which all deteriorated in 2023. At the same time, public spending increased in most CEMAC countries, reducing the fiscal space and imposing challenges to contain the public debt. Total debt-to-GDP ratio stands above the CEMAC target debt ceiling of 70.0% of GDP in the Republic of Congo and Gabon.
ECCAS and ECA are delving a strengthened partnership around the development of regional value chains (UNECA)
Economic Community of Central African States (ECCAS) Commission Chairperson, Ambassador Gilberto Verissimo, paid a courtesy call to ECA’s Sub-Regional Office for Central Africa in Yaounde, on the sidelines of his participation in the 6th COPIL/CER-AC Council of Ministers Meeting held in Yaoundé, Cameroon, from June 06 to 07, 2024
The rich discussions resulted to critical areas of collaboration with a view to deepening economic integration in Central Africa. It was emphasized that the promotion of industry should play a central role in efforts to regionalize economies. This involves the local transformation of the resources and raw materials with which the 11 economies of the sub-region are richly endowed, the priority value chains being timber, mining, agro-industry and oil-gas. This ambition is in line with the aspirations set out in the Douala Consensus, which the entire subregion adopted in September 2017.
“Central Africa has made commitment for economic diversification, and for us, as for all the endorsers including ECCAS, the Douala Consensus remains the roadmap. Together with ECCAS, we advocate that the transformation of raw materials through regional value chains will crystallize our integration efforts, because without local manufactured products, there can be no real intra-regional trade”, said Jean Luc Mastaki, Director of the ECA Sub-Regional Office.
More than 130 African ministers and experts have virtually convened from June 11 to 13, 2024 for the 2nd Extraordinary session of the Specialized Technical Committee on Communication and ICT to ignite digital transformation across the continent amidst rapid evolutions in the sector fuelled by artificial intelligence (AI) technology and applications. African ICT and Communications Ministers unanimously endorsed landmark Continental Artificial Intelligence (AI) Strategy and African Digital Compact to accelerate Africa’s digital transformation by unlocking the potential of the new digital technologies.
At the opening of the ministerial session, African Union Commissioner for Infrastructure and Energy Dr. Amani Abou-Zeid stated that Africa is resolved to harness new technologies for the well-being of Africans and to develop a Continent-wide approach and a harmonised journey for this revolutionary technology to tackle Africa’s complex and most pressing challenges while minimizing the risks. “For us Africans, Artificial Intelligence presents tremendous opportunities. It is a driving force for positive transformational positive change as well as economic growth and social progress,” said Dr. Abou-Zeid.
The Continental AI Strategy provides guidance to African countries to harness artificial intelligence to meet Africa’s development aspirations and the well-being of its people, while promoting ethical use, minimising potential risks, and leveraging opportunities. Identifying key priorities and actions to ensure that Africa fully benefits from the huge opportunities AI offers, the strategy calls for Africa-owned, people-centered, development-oriented, and inclusive approach to accelerate African countries’ AI capabilities in infrastructure, talent, datasets, innovation, and partnerships while also ensuring adequate safeguards and protection from threats.
16th U.S-Africa business summit: TGI Group advocates sustainable agricultural development (The Guardian Nigeria)
The TGI Group has reiterated its commitment to sustainable agricultural development to boost the sector in the country. The company gave the assurance at the 16th U.S.-Africa Business Summit, attended by over 1,500 public and private sector executives from across continents, where it emphasised its strategic collaborations for sustainable success in various sectors, including agriculture.
The Executive Director and Executive Vice Chairman (Africa) of TGI Group, Farouk Gumel, who participated as a panelist during a session themed: ‘From Food Insecurity to Thriving Agribusinesses: The Case for a U.S. Africa Strategic Agribusiness Partnership,’ emphasised the firm’s comprehensive approach, and company’s involvement in the entire value chain, from the seed to the final consumer.
In a panel session themed: ‘Future of U.S – Africa and Trade Investment: AGOA and beyond,’ Gumel further called for an upgrade of the African Growth and Opportunity Act (AGOA) and fairness in free trade in Africa. He said: “Since the AGOA legislation was renewed almost a decade ago, the dynamics of global trade has changed. The uniqueness of no duty in exporting to the U.S no longer exist because other big players like China, India and the U.A.E. have come into Africa offering the same benefits if not better than what we get from AGOA. To upgrade AGOA, there is a need to see what the other players are doing to make export seamless.”
Four Key Moments: Hearing on the Future of Trade with Sub-Saharan Africa, Haiti, and Other Nations (House Committee on Ways and Means)
Ahead of the 2025 expiration of the African Growth and Opportunity Act (AGOA) trade preference program, the Ways and Means Trade Subcommittee considered potential reforms to help the program better meet the interests of the United States, primarily expanding fair market access for U.S. farmers, and combatting China and Russia’s aggression on the African continent.
Witnesses at the Trade Subcommittee hearing urged the Committee to consider reforms to meet key goals, such as resuming the Trump Administration’s free trade agreement negotiations with Kenya, addressing rules governing when countries become ineligible for AGOA based on per-capita income, and securing U.S. supply chains.
AGOA provides national security and economic benefits to Americans, particularly as China and Russia seek to challenge America’s global leadership. Ways and Means Committee Chairman Jason Smith (MO-08) noted the program’s looming expiration offers a unique opportunity to reform the program to provide more direct benefit to American farmers, workers, consumers, and businesses.
Chairman Smith: ”The AGOA program has a successful track record of encouraging economic development in sub-Saharan Africa and greater access for U.S. agriculture products in that region – something I’ve watched closely over the years having attended an AGOA forum in Gabon back in 2015. Under the program, American taxpayers have invested over $8 billion in trade-related activities in Africa over the past 20-plus years. Reauthorizing AGOA will ensure American taxpayers get a positive return on their investment. It will also strengthen our economic relationship by making sure access to African markets for American exports, especially agriculture, is fair and our trade relationships benefit American workers, farmers, and businesses.”
Annual conference calls for enhanced Africa-Caribbean trade links (Antigua Observer)
The 31st African Export-Import Bank’s (Afreximbank) annual meeting brought together more than 3,000 delegates from across the globe, including Caricom heads of state and presidents of several African countries. The main focus of the gathering – held in Nassau, Bahamas – was to boost and streamline Africa-Caribbean trade. Under the theme “Owning our Destiny: Economic Prosperity on the Platform of Global Africa”, the conference aimed to strengthen economic ties between Africa and the Caribbean. The African diaspora is considered the sixth region of the African Union.
In his opening remarks, John Rolle, Governor of the Central Bank of the Bahamas, urged participants to seize the opportunities for learning, sharing, and networking. He particularly highlighted the potential benefits for the Caribbean in adopting the Pan African Payment and Settlement System (PAPSS) from Africa and expressed his belief that with support from Afreximbank, central banks across Caricom can work towards implementing a similar system.
Following the opening ceremony, a session on “Building Resilience in an Era of Globalisation” featured a keynote address from Dr Roger Ferguson, former Vice Chair of the Federal Reserve. Dr Ferguson stressed the importance of developing adaptable systems to respond to challenges and warned against the risks of inflexibility in the face of shocks.
Moreover, the day witnessed a significant moment as actress Viola Davis signed a memorandum of intent with Afreximbank and the Fund for Export Development in Africa to establish an African film development value chain. She emphasised the power of storytelling in reshaping the African narrative and stressed the importance for Africans to take ownership of their narrative.
See also: Achonu, Denya, others speak on Africa’s economic growth (The Sun Nigeria)
Next steps for the WTO in combating illicit trade (WTO Blog)
Illicit trade harms societies and impedes economic growth and development. As well as undermining legitimate business activity, it fosters corruption and denies governments potential tax revenue needed to invest in society. This is why the WTO Secretariat, under the leadership of Director-General Ngozi Okonjo-Iweala, has been examining how WTO rules help members to address some of the challenges posed by such trade.
In a recent publication on fighting illicit trade in medical products, DG Okonjo-Iweala emphasized that wider efforts are needed to deepen international cooperation and to provide the technical assistance needed to strengthen members’ capacity to combat illicit trade.
Building on this work, the WTO Secretariat has launched a new publication on illicit trade in food and food fraud to address the role the WTO could play in helping to tackle this issue. The publication draws on the expertise of a diverse range of organizations, including the Food and Agriculture Organization of the United Nations (FAO), the International Seed Federation (ISF), SSAFE — a non-profit organization for food safety, the Transnational Alliance to Combat Illicit Trade (TRACIT) and the United Nations Interregional Crime and Justice Research Institute (UNICRI), to examine this issue from various perspectives and to highlight strategies for tackling illicit trade in food and food fraud.
UN Secretary-General António Guterres opened the UN Trade and Development (UNCTAD) Global Leaders Forum, marking the 60th anniversary of the organization. Under the theme “Charting a new development course in a changing world,” over 1,100 participants from 152 countries convened in Geneva for the three-day forum. The event aimed to shape a vision for inclusive prosperity amidst global crises, trade disruptions, mounting debt burdens and the severe impact of climate change on developing countries. Support and recognition came from the leaders of countries reflecting the diversity of the Global South.
UN Trade and Development Secretary-General Rebeca Grynspan highlighted that many of the world’s poorest populations remain vulnerable to economic instability, environmental degradation and growing debt burdens. She voiced the organization’s commitment to supporting developing economies through an open and fair multilateral trading system. Ms. Grynspan emphasized the need to renew trust by amplifying the voices of developing countries.
Analysts examined disrupted global supply chains amidst escalating geopolitical tensions and the persistent asymmetry of the global economy in the digital age. They also explored cascading crises, sustainable industrial policies and the need to revitalize falling foreign direct investment. The consensus was that industrial policies and structural changes should occur in a socially inclusive and sustainable manner to ensure social stability and protect populations of developing countries.
See also: Leading economists take centre stage at UNCTAD’s 60th anniversary (UNCTAD)
Quick links
Africa’s tragedy of displacement rises highest in two-decade period (The East African)
Trade Can Resume Its Role As Driver Of Poverty Reduction (The Reporter Ethiopia)
Africans must own the logistics and shipping space - Executive Chair of McDan Group (MyJoyOnline)
Former Minister of Commerce to Address WTO’s 9th Global Review of Aid for Trade (Liberian Observer)
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Industry body calls for new govt to re-set the country’s maritime agenda (Engineering News)
South African non-profit advocacy company, the Maritime Business Chamber (MBC), has called on the incoming seventh administration of democratic South Africa to re-set the country’s maritime agenda. “South Africa is yet to fully operationalise efforts to promote South Africa’s maritime interest,” affirmed the MBC.
The chamber acknowledged that there had indeed been progress since the inauguration of democracy in 1994. This progress included the creation of the South African International Maritime Institute and its seafarer development programmes, as well as investments in the country’s ports infrastructure, the promotion of maritime tourism and the expansion of maritime trade.
“New Bills, Policies and Legislations [sic] have been signed into law, but are all yet to be fully tested as we have seen 2014 Operation Phakisa becoming just a hype ‘theme’ with no concrete updates on the status report,” stated the MBC. Operation Phakisa had no real “political champion” to drive it, and thus had “failed to achieve its desired outcomes”. Likewise, the Oceans Economy Master Plan, intended to roll-out and push the Oceans Economy, lacked a clear direction. The Comprehensive Maritime Transport Policy had “also been taking a slow turn in leveraging the Maritime Industry’s potential”.
Leather/textile manufacturing sector warms up for SADC industrialisation week (The Chronicle)
Zimbabwe’s leather and textile manufacturing sector has started warming up for the upcoming Southern African Development Community (SADC) Industrialisation Week to be hosted in Harare next month, which will precede the SADC Summit slated for August.
The 7th Annual SADC Industrialisation Week will run from 28 July to 2 August, 2024 under the theme “Promoting innovation to unlock opportunities for sustainable economic growth and development towards an Industrialised SADC”. At the event, which will be hosted by the Ministry of Industry and Commerce, the Confederation of Zimbabwe Industries will assume chairmanship of the SADC Business Forum.
Preliminary indications suggest that about 150 companies from the SADC region will participate at the event, comprising private sector players in the agro-processing, mineral beneficiation, pharmaceutical, financial, consumer and capital goods, women and youth, Micro, Small and Medium Enterprises and infrastructure sectors.
Treasury urges MPs to pass proposals in Finance Bill (Nation)
The National Treasury wants Parliament to adopt tax measures contained in the Finance Bill, 2024 in order to raise revenue to pay Kenya’s debt that stands at Sh11.2 trillion. Treasury defended the additional taxes and an expanded tax base, arguing that Kenya’s debt situation could become worse in the medium term.
Treasury Principal Secretary Chris Kiptoo told the National Assembly Finance and National Planning Committee that the debt to GDP ratio stands at 72 per cent, “which is way above the 55 per cent set in the Public Finance Act”.
“Our capacity to carry more debt is not sustainable so we have to raise revenue and cut expenditure. Any further accumulation of debt would mean Kenya will have no fiscal space.” The PS appeared before the committee to defend the proposals contained in the Finance Bill, 2024 that have elicited widespread anger.
See also:
E commerce stakeholders petition government over proposed tax (Kenya News)
The position of the creative industry on the proposed Finance Bill 2024 (Mpasho)
Kenya to drop excise duty on eggs, onions from EAC (The East African)
Kenya has proposed to remove excise duty on eggs, potatoes and onions from the East African Community (EAC) in measures that could promote intra-trade within the bloc. At a pre-budget meeting in May, EAC finance ministers agreed on some custom measures to protect industries in the region, Njuguna Ndung’u Kenya’s Treasury Cabinet Secretary said Thursday.
Delivering the 2024/25 Budget speech before Parliament, he proposed to remove the 25 percent excise duty introduced on the products last year, which affected trade relations between Kenya and her neighbours. “To promote trade across the East African region, I propose the removal of this excise duty on imported eggs, potatoes, and onions originating from East African Community partner states, subject to goods meeting the EAC rules of origin,” he said.
The EAC ministers also agreed on several custom measures to boost the competitiveness of locally manufactured products by allowing stays of application of the Common External Tariff as well as adopting higher rates where necessary to encourage local production in the region.
East Africa’s failure to harmonise taxes impacting trade, says EABC (Monitor)
The East African Business Council (EABC) has expressed concern at which countries within the regional bloc have failed to harmonise domestic taxes and levies among themselves. This, EABC says, has hindered growth of intra-regional trade, which currently stands at a paltry 15 percent.
Mr John Bosco Kalisa, the EABC executive director, said that no country wants to harmonise because of the different levels of economic growth. “Countries are very reluctant, if you look at the current taxes for example in Kenya, Uganda, and Rwanda; it’s only Rwanda that has reduced domestic taxes while others are increasing,” he said. The reluctance to harmonise taxes, Mr Kalisa said has created skewed competition, with some investors choosing to invest in countries such as Rwanda because of favourable and predictable tax regimes.
World Bank, WTO, NITDA move to enhance digital trade (Daily Trust)
The National Information Technology Development Agency (NITDA), the World Bank and the World Trade Organisation (WTO) have teamed up to accelerate diversification through industrialisation and digital trade. This was made known when the DG of NITDA, Kashifu Inuwa, played host to a delegation from the World Bank and the WTO, led by Mr Aleksandar Stojanov at the agency’s corporate headquarters in Abuja yesterday.
The meeting was centered on fostering deep collaboration between the two organisations to enhance digital trade, cross-border data services and sharing ideas on developing regulatory policies that would accelerate economic growth through technological innovations.
Speaking on the agency’s move to review most of its regulations, Inuwa said: “We started with recrafting our Strategic Roadmap and Action Plan 2.0 for 2024-2027 which has eight strategic pillars, among which is Strengthening Policy Implementation and Legal Framework, and what we need to put in place to make sure we create an enabling environment for the digital economy and digital trade.”
Harnessing Diaspora Finance for Sustainable Development in Nigeria: Opportunities for Investment (UNDP)
The United Nations Development Programme (UNDP) recently engaged the Nigerian Diaspora at the 2024 Nigerian American Business Forum (NABF) conference, focusing on opportunities for diaspora investment in Nigeria. The forum highlighted lucrative investment prospects in the country and explored the potential of leveraging diaspora finance for sustainable development. Emphasizing the critical role of the diaspora, the discussions centred on how diaspora investments can advance Nigeria’s national development aspirations.
Ms. Elsie Attafuah, representing Ms. Ahunna Eziakonwa, UNDP’s Assistant Administrator and Regional Director for Africa stated: “We must invest in the future of Nigeria’s development. When we invest, we are not just supporting people and their livelihoods; we are sowing seeds for the future of Nigeria, Africa, and the world. A prosperous Nigeria means a prosperous Africa, which ultimately benefits the world.”
Nigeria, with its ambitious Development Agenda, faces a formidable financing gap. Even pre-COVID estimates pegged the SDG financing need at $347 billion by 2030. In 2021, post-COVID, the IMF estimated an additional spending requirement amounting to 18% of GDP by 2030. Despite these staggering figures, public revenues in 2023 amounted to a mere 9.4% of GDP, highlighting the urgency for alternative financing mechanisms.
Supporting Nigeria’s Homegrown Reforms: New World Bank Financing for Inclusive Growth and Revenue Diversification (World Bank)
The World Bank has today approved two operations: $1.5 billion for the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF) and $750 million for the Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR). This combined $2.25 billion package provides immediate financial and technical support to Nigeria’s urgent efforts to stabilize the economy and scale up support to the poor and most economically at risk. It further supports Nigeria’s ambitious, multi-year effort to raise non-oil revenues and safeguard oil revenues to promote fiscal sustainability and provide sufficient resources to deliver quality public services.
Confronted with a fragile economic situation, Nigeria recognized the urgency of changing course and embarked on critical reforms to address economic distortions and strengthen the fiscal outlook. Initial critical steps to restore macroeconomic stability, boost revenues, and create the conditions to reignite growth and poverty reduction have been taken. These include unifying the multiple official exchange rates and fostering a market-determined official rate, as well as sharply adjusting gasoline prices to begin to phase out the costly, regressive, and opaque gasoline subsidy.
EAC launches the first regional e-Tariff software in Africa (WCO)
On 31 May 2024, the East African Community, in partnership with the World Customs Organization (WCO) and the EU-WCO HS-Africa Programme, funded by the European Union, launched its electronic Tariff software (e-Tariff Tool) in Arusha, Tanzania. The objective of the e-Tariff tool is to make tariff information available online, contributing to increasing consistency and transparency in classification and tariff determination. While e-Tariff have been implemented in several African countries, this is the first ever e-Tariff software for a regional entity in Africa, the EAC, which includes the Duty Remission scheme.
In her opening remarks, the EAC Deputy Secretary General Ms. Annette Mutaawe Seemuwemba, highlighted the importance of the tool as a key trade facilitation enabler that will be extremely beneficial to traders and private sector operators. She stressed that the benefit of the e-Tariff Tool shall have for transparency, accountability while also reducing time for clearance and processing duty remissions, as well as ensuring coherence throughout the region. She expressed her appreciation to the excellent support and partnership with the WCO and the European Union and that she sees further achievements in prospect.
ECOWAS Holds Consultations with Member States for a Post Malabo Agenda (ECOWAS)
With the Malabo Declaration ending in 2025, ECOWAS and the African Union are developing a new 10-year agenda for the region. This process involves stakeholder consultations, research, analysis, and political mobilization, culminating in a declaration of the new agenda by January 2025. The Comprehensive Africa Agriculture Development Programme (CAADP), Malabo Declaration emphasizes involving public and private stakeholders in African agricultural transformation.
In this context, the ECOWAS Commission’s Directorate of Agriculture organized a meeting in Abuja, Nigeria, from June 12-14, 2024, to review the ECOWAS Agriculture Policy (ECOWAP) to ensure its consistency, relevance, and complementarity, and to avoid duplication of efforts. The meeting will also facilitate outreach, awareness, socialization, building momentum, and political buy-in for the ECOWAP/CAADP Post Malabo process and issues. Member States and Agriculture’s Regional Stakeholders will reflect and share their experiences and best practices for the last 20 years of ECOWAP/CAADP to inform the future and have a wider perspective and build consensus on key issues and technical options.
DP world plans $3bn investment in African ports by 2029 (Engineering News)
DP World plans to spend $3-billion over the next three to five years on new port infrastructure in Africa to meet long-term growth that includes surging demand for critical mineral exports. “The cost of logistics and supply chain across Africa is very high relative to other global markets,” which presents a good opportunity, Mohammed Akoojee, DP World’s CEO and MD for sub-Saharan Africa, said in an interview on Bloomberg Television. The port operator is expanding in Dar es Salaam in Tanzania and has recently assessed harbors in South Africa and Kenya for potential investment.
Eight of the world’s 15 fastest-growing economies will be in Africa this year, according to the International Monetary Fund. That’s luring companies including Dubai-based DP World, despite economic pain from accelerating inflation, depreciating currencies and high borrowing costs in the region. Africa’s potential should be viewed over the long term, not by short-term macroeconomics, according to Akoojee. “It’s a cycle and it certainly hasn’t impacted our appetite for growth on the continent,” he said. “We’re still investing.”
DP World’s Africa unit has 27 000 workers and covers ports, terminals, logistics and supply chain businesses. It failed in a bid to partner with South Africa’s Transnet to develop the biggest container port on the continent, losing to International Container Terminal Services Inc., which is owned by Filipino billionaire Enrique Razon. That hasn’t deterred the company from looking to continue its expansion on the continent.
African Continental Free Trade Area and the African Railway Renaissance (Railways Africa)
Soter Gatera of the United Nations Economic Commission for Africa (UNECA) articulated a compelling vision for Africa’s railway development at the African Union Commission (AUC), Department of Infrastructure and Energy (IED) Continental Workshop, held from 7th to 10th May 2024 in Dar es Salaam. Gatera emphasised the transformative potential of what he calls an “African Railway Renaissance,” rather than just railway development.
From the AUC’s perspective, railways are the transport mode of the future for the continent. Railways can handle significant volumes of freight more efficiently and with fewer emissions compared to road transport. One locomotive pulling cargo and passenger wagons can replace more than 50 trucks, significantly reducing greenhouse gas emissions and other pollutants.Given the burgeoning African Continental Free Trade Area (AfCFTA), the largest market globally, the strategic importance of railways cannot be overstated.
No economy can grow without embracing digitalisation — ECOWAS Resident representative (Modern Ghana)
Mr Baba Gana Wakil, ECOWAS Resident Representative in Ghana, has underscored the critical role of digitalisation in the economic growth of member states. He said in an era where digitalization stood as a cornerstone of economic growth, young people worldwide were leveraging information and communication technology (ICT) to tackle unemployment.
Speaking in an interview during a 10-day intensive programme aimed at equipping over 200 Ghanaian youth with essential digital skills, Mr Wakil said no economy could thrive in the modern era without embracing digital technologies. This initiative, which started from 3rd June to 14th June, is expected to empower hundreds of young individuals, providing them with the tools needed to thrive in the rapidly evolving digital economy.
The programme, part of ECOWAS's broader regional development strategy, focuses on key areas such as coding, software, mobile and web development (front and backend) for the first week, and cable TV development for the succeeding week. It aims to bridge the skills gap and prepare participants for opportunities in the global digital marketplace.
China and Africa forge agricultural tech cooperation for growth (China Daily)
On June 12, 2024, the workshop on China-Africa Agricultural Science and Technology Cooperation under FAO South-South and Triangular Cooperation Framework held in Sanya, Hainan province, brought together international participants to discuss how to strengthen China-Africa agricultural technology cooperation and support the modernization of African agriculture
“Science and technology play a fundamental role in transforming agriculture and enhancing food security. With its vast innovation potential, Africa can benefit from adopting advanced agricultural technologies,” said Sun Tan, vice president of the Chinese Academy of Agricultural Sciences (CAAS). He added that China’s technological advancements and experiences can be references for African countries seeking to improve agricultural productivity and sustainability.
Top trade and foreign affairs officials and experts from across sectors and regions gathered on 13 June in Geneva, Switzerland, to address key challenges and opportunities facing the world economy amid multiple crises and increasing global inequality. They called for a renewed multilateralism characterized by equality and reaffirmed UN Trade and Development’s crucial role, solidifying its mandate.
The second day of the Global Leaders Forum marking the 60th anniversary of UN Trade and Development (UNCTAD) featured an array of voices – from government ministers to tech entrepreneurs, academics and civil society leaders – providing unique perspectives on issues ranging from disrupted global supply chains to digital economy gaps and sustainable industrial policies.
UN Trade and Development Secretary-General Rebeca Grynspan closed the day by underscoring the collective resolve to confront these challenges and transform “hierarchical conference tables into circles of equals.” “This is the new face of multilateralism,” she said. “A multilateralism driven by our own sense of resolution.”
BRICS WBA Launches Common Alliance’s Digital Platform (BRIСS Women Business Alliance)
On June 3, 2024, at the BRICS Women’s Entrepreneurship Forum, the official launch of the key and flagship project of the BRICS Women’s Business Alliance - the Common Digital Platform - took place.The general partner of the BRICS Women’s Entrepreneurship Forum is Sberbank.The project to create the Platform as the main resource of the Alliance was proposed by the Russian Chapter in 2021 and was unanimously supported by all BRICS WBA National Chapters.
The platform will contain information about the history of the Alliance, areas of cooperation, events, documents, including the declaration on establishment, terms of reference, summit declarations, strategies, reports and etc. The platform will create a database of companies owned or managed by women and will become the most important communication resource on which women entrepreneurs from the BRICS countries will be able to communicate, register their businesses, search for and establish direct contacts with partners from the countries of the association.
Call to Action: Why the G20 needs a Data20 (G20 Brasil 2024)
Data is fundamental to an increasingly digital world: from AI to digital public infrastructure, questions must be considered about data access, content and representation, conditions of its use, and governance. It remains critical to unlocking value through digital innovation, and negotiations over data governance and value creation are at the core of ongoing multilateral discussions over global cooperation in an increasingly digital world.
Through discussions and progress over the content and form of the Global Digital Compact, and looking forward to the UN Summit of the Future, global cooperation and consensus on data governance remain key points of debate within multilateral fora. These discussions reveal the importance of attention to data in multilateral forums, given its ubiquitous impacts on development globally and across sectors. Also they reveal important challenges to global data governance, given data’s distinctive economic and informational characteristics and competing values, perspectives and priorities.
The G20 has an important contribution to make in building a shared approach and understanding of global data governance, leveraging the countries/stakeholders that make up the G20. Yet, the G20 has not yet capitalised on its opportunity to push forward productive and shared discussions aimed at building consensus on global data governance.
The G20’s Global Partnership for Financial Inclusion (GPFI) has today unveiled a new report that provides evidence of the transformative impact of digital remittances, as a driver of financial inclusion and poverty reduction worldwide. Despite persistent gender gaps, the hard-earned money sent back home by migrant workers remains a vital lifeline for over 800 million people, particularly for women and vulnerable populations.
Authored by the UN’s International Fund for Agricultural Development (IFAD) with contributions from the World Bank, the GPFI report “Promoting Financial Inclusion through Digitalization of Remittances“, showcases significant strides in digitalizing remittance distribution channels.
“Digitalization reduces transfer costs, speeds up transactions, and enhances security and tracking of payments. It also broadens access to financial services like savings, credit, and insurance, especially when accompanied by proper consumer protection and financial education policies. These benefits promote financial inclusion and build financial resilience for remittance families,” says Magda Bianco, co-chair of the G20 Global Partnership for Financial Inclusion (GPFI) and head of the Consumer Protection and Anti-Money Laundering Directorate at the Bank of Italy.
The Antigua and Barbuda Agenda for SIDS (ABAS) – a Renewed Declaration for Resilient Prosperity released at the 27-30th May 4th International Conference of the Small Island Developing States (SIDS4) calls for increased effectiveness of development finance. This is to be achieved through the establishment of a dedicated SIDS Debt Sustainability Support Service. The service aims to enable sound debt management and devise effective solutions for SIDS in relation to immediate-term debt vulnerability and long-term debt sustainability.
SDC chair and Deputy Minister of Finance and Economic Affairs of Egypt, Sherine El Sharkawy, emphasized the importance of debt sustainability and climate resilience for SIDS. “Over 80% of developing countries, including SIDS, are already forced to spend more on interest than they do on climate action,” she stated.
See also: Empowering Small Island Nations: The Path to Resilient Prosperity (Impakter)
Building Resilience in an Era of Deglobalisation (Afreximbank)
A combination of climate change, rapidly shifting geo-political sands and shifting global alliances are all conspiring to make the world of 2024 considerably more unpredictable than a generation ago,. Given the practically guaranteed nature of turbulence and instability, the smart approach is to devise and maintain systems which detect shifts before they happen, or at least before their full force is felt. African economies have, Dr Roger Ferguson, economic scholar and 17th vice chairman of America’s Federal Reserve from 1999 to 2006 contended, historically suffered because world commodity shocks and trade route disruptions have arrived as surprises, and no preparation has been undertaken as to how to insulate states from their worst consequences.
Though a much-vaunted idea in the West, Dr Ferguson challenged the characterisation of modern trade as entering a “de-globalisation” phase. Whilst this might be how the world looks from Washington, Brussels and London, the reality is rather that we have entered a period of “re-globalisation”, in which economic dynamics are being influenced increasingly by new centres of power and production: China, India, Nigeria, Indonesia, to name a few.
Akinwumi Adesina: Africa loses $15bn annually to climate change (TheCable)
Akinwumi Adesina, president of the African Development Bank (AfDB), says Africa loses between $7 billion to $15 billion dollars annually due to climate change. He said Africa’s economy and agriculture are adversely affected by climate change, despite contributing only three per cent of global emissions. “The AfDB has committed to doubling its climate finance to $25 billion by 2030, focusing on the African Adaptation Acceleration Programme. This programme aims to deploy $25 billion for climate adaptation, making it the largest globally. Additionally, the AfDB has created a climate action window with an initial investment of $429 million, expected to grow to $13 billion.” The AfDB president said the climate action initiative will support vulnerable countries with crop insurance, land restoration, and climate information services.
African Caribbean free trade agreement requires multi-faceted approach – Minister (The Guardian Nigeria)
Dr Doris Uzoka-Anite, Minister of Industry, Trade, and Investment (FMITI), says developing the African Caribbean Free Trade Agreement will require a multi-faceted approach. Uzoka-Anite said this at a Plenary Session: “Towards An Afri-Caribbean Free Trade Agreement: The Pathway to Self-Determination” at the ongoing 31st Afreximbank Annual Meetings (AAM2024) in Nassau, The Bahamas.
“The role of government, the private sector, international development communities, and civil society have to be defined. There has to be a multi-stakeholder engagement to address all the issues. “When we have a focused and inclusive discussion, listening to diverse opinions and considering them in negotiations, we take the first step in breaking down barriers, because we are going to see a lot of barriers.” Uzoka-Anite said strong political will from the political leaders was also needed to achieve the development of the African-Caribbean Free Trade Agreement.
Afreximbank disburses $18bn loans, aims for more refinery financing after Dangote’s (Businessday NG)
The African Export-Import Bank (Afreximbank) in 2023 allocated a total of $18 billion to various projects across Africa, with a strategic goal of supporting the refining of 50 per cent of the continent’s 5 million barrels per day of crude oil production. Benedict Oramah, President of Afreximbank, said that despite ongoing macroeconomic challenges, the bank increased its disbursements by 8.7 per cent in 2023, from $16.6 billion in the previous year to $18 billion. “Our goal is to support the creation of a refining capacity that will ensure that at least 50 percent of about 5 million barrels per day of crude oil produced in the Gulf of Guinea is refined in Africa,” he said
Conflict Of Interest Hinders Implementation Of AfDB’s Anti-corruption Fund – Adesina (News Agency of Nigeria)
The African Development Bank (AfDB) President, Akinwumi Adesina, says conflict of interest is hindering implementation of the bank’s anti-corruption fund. Adesina, in an interview, said the bank established an anti-corruption fund of about 55 million dollars seven years ago, which had yet to be tapped into.
“The point is, we have the funds. However, when implementing that fund, we found that there were conflicts of interest on how the fund was set up.” Adesina restated that the bank had an independent anti-corruption unit that sanctions companies with non-competitive behaviour. According to him, corruption is not unique to Africa, and there is no doubt about the need for improved governance, transparency, and accountability anywhere in the world. He said to curb the challenge of corruption, the bank established a programme called SEGA, which centred on economic governance in Africa. “It has to do with public financial management. It has to do with debt management. It has to do with reducing illicit capital flows.
Gender and Albania’s accession take centre stage at Government Procurement Committee (WTO)
Addressing the WTO Committee on Government Procurement at a meeting on 12 June, the Deputy Executive Director of the International Trade Centre (ITC), Ms Dorothy Tembo, called on parties to the Government Procurement Agreement 2012 (GPA 2012) and observers to help support its recently launched global campaign aimed at improving the participation of women entrepreneurs in government procurement. “Currently, only 1 per cent of public contracts globally are going to women-led businesses,” she said.
The campaign seeks to help women overcome barriers when bidding for government contracts. Among these barriers are complex procedures, financing constraints and a lack of information and networks to grow businesses and increase exports.
Plastics Dialogue co-coordinators outline focus areas to guide post-MC13 work (WTO)
At a meeting on 13 June, co-coordinators of the Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (DPP) proposed a set of potential items of focus as the initiative geared towards achieving concrete, pragmatic and effective outcomes by the 14th Ministerial Conference (MC14). Participants also heard updates on various international processes aimed at reducing plastics pollution, delving deep into the technical elements that align with the actions identified in the MC13 Ministerial Statement.
Regarding the promotion of trade to tackle plastics pollution, the proposed focus includes facilitating access to technologies and services, including for waste management, and levelling the playing field for non-plastic substitutes and alternatives, starting with standards. How to enhance the capacity of members to integrate trade as part of the solution to plastic pollution was also proposed as a focus under this workstream.
Quick links
How can Africa navigate increasing polycrises? (The New Times)
Africa enters into multi-country visa regime (bird)
The European Union and Africa: Towards a Strategic and Partnership Redefinition (EU Reporter)
G7 vows to drop fossil fuels faster, but activists unimpressed (Reuters)
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President Mnangagwa rallies local businesses to embrace AfCFTA opportunities (The Chronicle)
President Mnangagwa has rallied Zimbabwean businesses to be aggressive and take full advantage of the vast trading opportunities presented by the African Continental Free Trade Area (AfCFTA). He was addressing the 10th CEO Africa Roundtable conference in Victoria Falls today, which runs under the theme: “The Future of Africa: Modernise, Reshape and Grow”.
“In line with this year’s theme of modernisation, my Government is committed to significantly improve trade facilitation, reduce clearance times, and enhance the efficiency of cross-border operations along transport corridors, leveraging on Zimbabwe’s strategic geographic location in the Southern African Region,” said President Mnangagwa.
The President said by aligning the development of the North-South Corridor, Border Post upgrading, modernisation initiatives, and the principles of the African Continental Free Trade Area, a strong foundation for seamless regional integration is laid.
Digital transformation: A pathway to address Nigeria’s unemployment crisis (Businessday NG)
Nigeria, with its vibrant and growing youth population, is standing at a crossroads. The nation is grappling with an alarming unemployment rate of 33.3 percent, one of the highest in the world. This crisis is particularly severe among young Nigerians, who represent a significant segment of the population. Yet, amid this daunting challenge, digital transformation shines as a beacon of hope. It offers a path forward through job creation and skill development, essential for driving economic growth and ensuring stability.
Digital revolution is reshaping economies around the globe, propelling growth and innovation at an extraordinary rate. A recent study predicts the global digital economy will soar to $23 trillion by 2025, underscoring the immense transformative potential of digital technologies. For developing nations like Nigeria, digital transformation presents a golden opportunity to unlock new economic prospects, boost productivity, and pave the way for sustainable development.
EAC finance ministers present 2024/25 national budgets (The East African)
East African finance ministers are presenting their spending plans for the 2024/2025 fiscal year against a backdrop of a fragile operating environment fuelled by rising public debts, high fuel prices, falling household and business incomes and global geopolitical tensions in the Middle East and Eastern Europe, which are colluding to stifle economic growth in the region.
Kenya, Uganda, Tanzania and Rwandan finance ministers will be outlining their budgetary allocations to key priority sectors to bolster economic growth and the various taxation measures to fund the budgets. However, the ministers face a delicate balancing act in adopting revenue-raising policies that do not push the economies into debt distress and discourage regional trade and investment through punitive taxation measures.
No agreement in Africa on proposed merging of economic groups (The Standard)
Presidents and finance ministers from eleven central African countries have failed to agree on merging three economic blocs. Analysts say breaking down economic barriers among member countries of the Central African Economic and Monetary Community, CEMAC, the Economic Community of Central African States, ECCAS, and the Economic Community of the Great Lakes Countries CEPGL will boost trade and growth in a region that is said to be among the poorest and most conflict-ridden in the world. But after a meeting in Cameroon’s capital, officials say combining the three economic blocs will take longer than the leaders of the regions expect.
Gilberto Da Piedade Verissimo is the president of ECCAS. He says the process of merging the economic blocs is taking longer than planned because of a lack of political will, conflicting interests and bureaucratic duplication among 3 rival economic groups. He says each time there is a leadership change, ECCAS officials start explaining the importance of fusing the economic blocs for the general interest of the eleven central African states to new governments all over again because different leaders have different understandings of the combination.
Verissimo said merging economic blocs will stop the duplication of regional projects such as airlines, roads, electricity, agriculture and aquaculture, making it easier for funding agencies to invest in such projects.
Experts of Ministries in charge of Industry recommend revised standards and instruments (ECOWAS)
In the framework of the implementation of the ECOWAS Quality Policy (ECOQUAL), the ECOWAS Commission held a meeting of Experts of Ministries in charge of Industry to consider draft standards and instruments to ensure quality, reduce technical barriers to trade and facilitate access to market at regional, continental and international level.
The Industry Experts reviewed and validated the revised ECOWAS Standard Harmonization Model (ECOSHAM) which considers latest development and aligned with the African Standards Harmonization rules and procedures, 58 draft ECOWAS Standards (ECOSTANDs) on textile value chain aiming at ensuring quality and the well-being of the consumers of the region and a Mutual Recognition Arrangement (MRA) for acceptance of Inspection Certificates aiming at facilitating cross-border trade and reducing time and cost for quality control.
At the end of the meeting, the Experts recommended the instruments for endorsement by the Ministers in charge of Trade and Industry and thanked the ECOWAS Commission for its coordinating and supporting role as well as for the level of commitment made towards deepening regional integration through Quality promotion, Standards development and intraregional trade.
Committee on Market Access holds first thematic session on greening the Harmonized System (WTO)
The Committee on Market Access held on 11 June a first exploratory session on “greening” the Harmonized System (HS), the system used to classify traded goods, and how this relates to the work of the WTO. The session featured presentations from the WTO Secretariat, World Customs Organization (WCO), Food and Agriculture Organization (FAO) of the United Nations, Basel, Rotterdam and Stockholm Conventions (BRS) Secretariat, and the Government of Ecuador on how the HS could be adapted to help WTO members achieve their environmental objectives.
The session built on the WCO report published in April 2023 summarizing the outcomes of a series of symposia on “Visualising a greener HS” from October 2022 to January 2023. These events sought to discuss and identify potential changes to the HS in order to make it more supportive of environmental policy needs in future editions and included participation from WCO members and various stakeholders.
Robust investments in infrastructure are essential to ensure universal access to the internet (G20 Brasil 2024)
Currently, according to Giga Project data, around 2.6 billion people around the world have no access to the internet. Universal connectivity will not be achieved without a massive investment in digital infrastructure. A proposal to overcome this challenge was presented on Tuesday (11) during a G20 Digital Economy Working Group event.
Universal and meaningful connectivity. One of the priorities of the Digital Economy Working Group under Brasil’s G20 presidency is also one of the pillars of the struggle to overcome social inequality in an increasingly connected and digital world. Presently, around 2.6 billion people around the world have no access to the internet, according to data from the Giga Project, a UNICEF and International Telecommunication Union (ITU) initiative.
On Tuesday, the G20 Digital Economy WG side event “Digital Infrastructure Investment Initiatives: bridging the financial gap for significant universal connectivity” presented the Digital Infrastructure Investment Initiative (DII) proposed by the International Telecommunication Union, knowledge partner of Brasil’s presidency in the Digital Economy Working Group.
The goal is to address the challenges and opportunities that are inherent to digital infrastructure and to the need for investments in the sector, presenting examples of financial mechanisms that are capable of leveraging universal and meaningful connectivity around the world.
Trade can resume its role as driver of poverty reduction (World Bank Blog)
International trade soared as the world recovered from the Covid-19 induced economic crisis. In 2022, the value of traded goods and services was 24 percent higher than in 2019, before the pandemic struck. But in 2023, trade hit a wall, barely eking out a 0.1 percent gain over the previous year, as underlined in the World Bank’s Trade Watch. It took strong growth in services trade to make up for the first decline in goods trade in 20 years outside of a recession.
Where do we go from here? The World Bank’s latest Global Economic Prospects report predicts that trade will recover slightly in 2024 and 2025 as pre-pandemic patterns reassert themselves. Trade is expected to mirror projected weak growth in global output and investment.
On the other hand, pessimists might say that 2023 marks the beginning of a new normal for trade in a world best by geopolitical tensions, climate-related shocks, and increased protectionism in advanced and large economies. That dark scenario spells trouble for developing countries, which need trade, foreign investment, and participation in global value chains to eliminate poverty and ensure their green transition.
US apparel negotiator urged to tackle unfair trade policy (Just Style)
USTR apparel negotiator White made her inaugural trip to a major hub of American textile production facilities and visited six plants in total in North Carolina, including American & Efird, Parkdale Mills/US Cotton, TSG Finishing, Shuford Yarns, Schneider Mills, and Unifi. White was shown recent textile and apparel industry innovations, the facilities’ advanced manufacturing capabilities and the role the domestic sector plays in supplying the US military and personal protective equipment (PPE).
White also participated in a roundtable discussion at Gaston College’s Textile Technology Center where US textile executives underscored the domestic textile supply chain’s $64.8bn output in 2023 and the benefits of its over 500,000 workforce. However, the attendees also warned of severe economic headwinds from foreign trade practices and so-called inadequate enforcement of trade laws.
OECD Digital Economic Outlook 2024: perspectives of the future (Telefónica)
The rapid advancement of interdependent digital technologies is driving significant economic and societal transformations. The OECD Digital Economy Outlook 2024 (Volume 1) provides an in-depth look at the fast-paced advancements in digital technologies that are reshaping our economy and society, underpinning digital transformation and their impacts.
Over the past decade, the ICT sector has grown approximately three times faster than the total economy in OECD countries, reaching an average growth rate of 7.6% in 2023. This highlights the sector’s resilience and importance.
As digital transformation intensifies and their social and economic impact deepens, the need for evidence-based policies becomes more urgent. The OECD have used Google Trends data to nowcast trade in services during the COVID-19 period and to develop weekly estimates of GDP growth rates. Additionally, the OECD AI Policy Observatory uses non-traditional data to measure the real-time use and diffusion of AI technologies. However, the extent of digital transformation is difficult to measure in terms of the monetary value of the digital economy due to a lack of timely and comparable data across countries.
G20 leaders call for global cyber regulations (Cyber Daily)
Global leaders have met to discuss the importance of cyber security in an increasingly digitally connected world, as part of the G20 Digital Economy Working Group this week. Leaders from the 20 participating countries, including Australia, China, Japan, Russia, the UK, and the US, met in the city of São Luís, the capital of Maranhão, Brazil, for the meeting.
On Monday (10 June), the group held a seminar on security in digital economies, discussing the issues that increased digital connectivity brings to security and privacy, particularly with the growth of developing technologies like artificial intelligence (AI).
The discussion was centred on “four priority axes: universal and meaningful connectivity; information integrity; digital government; and artificial intelligence”, according to the G20. Minister Amaro said that global cooperation is key in thwarting digital threats.
Afreximbank Launches 2024 African Trade Report and African Trade and Economic Outlook Report at AAM 2024 (Afreximbank)
African Export-Import Bank (Afreximbank) today launched its African Trade Report 2024 and African Trade and Economic Outlook Report 2024 at the Afreximbank Annual Meetings (AAM) 2024 in Nassau, The Bahamas. The latter report forecasts that African economies will grow on average by 3.8% in 2024 – slightly ahead of predicted global growth of 3.2% – prior to increasing by 4% in 2025. The Report, titled ‘A Resilient Africa: Delivering Growth in a Turbulent World,’ provides an analysis of the economic environment, trade patterns, debt scenarios, and future projections for African economies.
Dr. Yemi Kale, Afreximbank’s Group Chief Economist and Managing Director of Research and International Cooperation, said ongoing global challenges undermined the performance of Africa’s trade, which contracted by 6.3% in 2023 after expanding by 15.9% in 2022, while intra-African trade expanded by 3.2% over the same period. The Chief Economist said: “This performance is reflective of the resilience of the African economy and the potential impact of the African Continental Free Trade Area’s (AfCFTA) single market for the continent as a tool to protect them from global shocks,” adding, “Our analysis in the report also revealed large untapped potential in intra-African trade, especially with respect to machinery, electricity, motor vehicles, and food products.
Intra-Africa exports surge (The Zimbabwe Independent)
Africa’s intracontinental commerce is on the rise, accounting for 16,3% share of total trade in recent years, according to Kwazulu-Natal premier Nomusa Dube-Ncube. While this figure may seem modest compared to other regions, it hints at the vast untapped potential within the continent’s borders.
“Reflecting on the journey thus far, it’s evident that Africa has traversed great distances,” she said at the 31st Afreximbank Annual Meetings incorporating the 3rd AfriCaribbean Trade and Investment Forum. “Gone are the days when our continent was mired in conflict, disease and famine, shackled by the weight of its colonial past. Today, we stand tall amidst a landscape of democracy, open economies, and relative political stability.”
Afreximbank’s Annual Meetings 2024 Calls for Africans Across the Globe to Unite (Afreximbank)
Heads of State, Ministers, government officials, and renowned captains of industry were among the over two thousand delegates attending day one of the 31st African Export-Import Bank (Afreximbank) Annual Meetings (AAM) being held in Nassau, The Bahamas from June 12-15. Themed “Owning our Destiny: Economic Prosperity on the Platform of Global Africa,” the first day of the Meetings called to strengthen the linkages between Africa and the Caribbean, the sixth region of the African Union. These meetings are considered crucial for economic decision-makers in Africa and the Caribbean and are covered by the African, Caribbean, and international media.
Ms. Pamela Coke-Hamilton, Executive Director of the International Trade Centre, emphasised the significant trade potential between Africa and the Caribbean, projecting trade to reach US$1.8 million annually by 2028. She suggested it is time to explore establishing a free trade area between Africa and the Caribbean. “Trade agreements are one way to help bring down barriers and open new opportunities,” said Ms Coke-Hamilton.
ITC commits to promoting African-Caribbean trade (IITC)
Executive Director Pamela Coke-Hamilton delivered her opening remarks at the ‘Economic Transformation for Global Africa in a Polycrisis World’ session during the 2024 Afreximbank Annual Meeting and the 3rd AfriCaribbean Trade and Investment Forum.
The ties between Africa and the Caribbean run deep, and it’s these ties that can and must carry us through some of the biggest threats that we face, especially in today’s polycrisis world. Challenges like climate change, which bears down on us daily, putting current and future generations at risk. Challenges like supply chain disruptions, or food insecurity, or environmental degradation, or the COVID-19 pandemic’s aftermath, all of which can undo years of economic progress in short order.
But if we’re going to tackle these challenges head-on, we need more trade and investment between Africa and the Caribbean. That’s what can make economic transformation possible, and in a way that benefits both regions by drawing on our shared ties, hopes, and potential.
ITC’s newest research with Afreximbank, which we will soon publish, shows that trade between Africa and the Caribbean holds enormous potential—$1.8 billion for goods and services annually by 2028, to be exact. But we have a long road ahead of us if we’re going to actually achieve that potential in practice, because getting to that number means getting rid of all trade frictions and getting investments into the right sectors.
CARICOM pilot of shared currency system ‘soon’ (Barbados Today)
The pilot of a potentially ground-breaking scheme to allow CARICOM nations to trade using each other’s currencies without a third-party currency is to start “soon”, Central Bank of Barbados governor Kevin Greenidge has revealed.
Greenidge, who chairs the CARICOM group of central bank governors, said regional governors agreed last month to push ahead with a Caribbean version of the Pan-African Payment and Settlement System (PAPSS) which was launched by the African Export-Import Bank (Afreximbank) in January 2022 to reduce reliance on hard currencies like the US dollar for transactions between African nations.
If successfully replicated in the Caribbean, the system could allow goods and services to be paid for directly in the currencies of the respective CARICOM nations involved, rather than being settled in a third currency like the US dollar. Proponents argue the payment system would reduce transaction costs, minimise the need for holding substantial foreign currency reserves, facilitate smoother intra-regional trade and lead to lower retail prices for consumers. In October, 11 CARICOM central bankers unanimously agreed to adopt PAPSS as the preferred system for settling intra-regional trade transactions.
Members add good practice guide to TBT transparency tools, advance work on triennial review (WTO)
At its meetings on 4-7 June, the Committee on Technical Barriers to Trade (TBT) finalised a good practice guide to support members wishing to comment on other members’ proposed TBT regulations before they are finalised. The Committee also considered 38 proposals regarding the on-going triennial review of the TBT Agreement. Members raised 61 trade concerns at the meeting, of which seven were raised for the first time.
DG Okonjo-Iweala welcomes President Assoumani of Comoros to the WTO (WTO)
Director-General Ngozi Okonjo-Iweala met with the President of Comoros, Azali Assoumani, on 12 June at the WTO. The President announced that his country had taken the first step to ratify its imminent WTO membership, which was approved at the 13th WTO Ministerial Conference (MC13) in Abu Dhabi in February. Both leaders subsequently discussed next steps for the entry of Comoros into the WTO.
Both leaders reiterated the important role that trade and the WTO play in developing and expanding the economic base and export potential of Comoros, particularly in sectors such as tourism, finance and digitalisation. Regional cooperation and integration, including through the African Continental Free Trade Area, was highlighted as another key element for further economic diversification.
Quick links
‘Where will we go?’ Taxing times for East Africa’s ‘mitumba’ women (Nation)
Becoming the Mining Hub of Africa: Detrimental to Inclusive and Sustainable Development of Ghana (Modern Ghana)
Reforms to Improve Service Delivery, Boost Tax Revenues, and Strengthen Accountability and Transparency in Liberia (World Bank)
UN chief underscores UNCTAD’s essential role in shaping a fairer, more sustainable global economy (UNCTAD)
Evaluation praises work of STDF in helping developing countries meet SPS standards (WTO)
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Shocking SA port ranking rings alarm bells for fruit industry (Food For Mzansi)
Cape Town’s port has been officially ranked as the worst-performing port in the world, according to the global Container Port Performance Index. Experts in the fruit industry said this ranking is causing concern because it damages South Africa’s reputation as a country that exports goods. The index, developed by the World Bank and S&P Global Market Intelligence, ranks all the ports worldwide based on their performance. What is worse, it is not just Cape Town. All four of South Africa’s container ports are ranked poorly on this index, with Cape Town being the lowest at 405th place out of 405 ports listed.
According to Roelf Pienaar, managing director of Tru-Cape Fruit Marketing, they are extremely worried about the situation, which should be considered a significant barrier to trade. “An efficient and resilient port is key to the success of our industry,” Pienaar remarked, adding that the company is only about halfway through the current season’s exports.
According to industry body Hortgro’s estimates, the export apple and pear crop will increase by 6% and 5% this year, respectively. The majority of the fruit is supposed to leave the country through the port of Cape Town but due to the logistical challenges, costly alternatives, such as transporting fruit via road to Qgeberha and exporting from there, are implemented.
Related:
South African ports ranked among worst in the world (BusinessTech)
Transnet meets with world bank to rectify factual errors in port index (Moneyweb)
Asian ports reign as top performers (Port Technology International)
How resilient ports can mitigate global supply chain disruptions (World Bank Blog)
Recovery in logistics sector continued in April despite ports being lashed by storms (Engineering News)
After declining in the first two months of the year, the Ctrack Transport and Freight Index (Ctrack TFI) continued its momentum in April to reach a level of 123.4 – an increase of 2.8% compared with March. This is also 1.5% above the levels seen a year ago.
Except for two subsectors that declined – sea freight, and storage and warehousing – activity in all other subsectors advanced on a monthly basis, led by notable increases in air freight and road freight. Similarly, compared with a year earlier, four subsectors increased during April, while only the road freight and pipeline transport subsectors declined. The heavily weighted road freight subsector – which has jumped in recent years and now accounts for 83.6% of all freight payload in South Africa – recovered in April.
Strengthening China-Kenya Economic Cooperation for Sustainable Development (Africa24.it)
The recent China-Kenya Economic, Trade, and Investment Cooperation roundtable in Nairobi marked a significant milestone in the collaborative efforts between the two nations. The event, organized by the Alliance of Chinese Business in Africa for Social Responsibilities (ACBASR) and the Kenya China Economic and Trade Association (KCETA), brought together government officials and business leaders to enhance economic ties and cooperation.
The strategic partnership agreement signed during the roundtable demonstrates a joint commitment to fostering economic and trade exchanges between Kenya and China. The collaboration aims to promote investment projects, facilitate trade, and deepen cooperation for mutual benefit.
The forum highlighted the importance of enhancing manufacturing capabilities in Kenya, with a target to increase the sector’s contribution to GDP significantly by 2030. Chinese enterprises were encouraged to explore investment opportunities in key sectors such as agribusiness, renewable energy, infrastructure, and steel production.
See also: Finland, Kenya ties to boost Africa trade (Business Daily)
US urges Kenya to tighten rules on wildlife trafficking (The East African)
The US wants Kenya to tighten rules on environmental protection and conserving natural resources as negotiations for a new trade deal between the two nations intensify. In the latest third set of proposed texts in the targeted trade deal, the US is seeking greater commitment from Kenya to strengthen laws and rules on environmental protection with a key focus on conserving natural resources.
“The proposed text includes provisions to address air quality, marine litter, and plastic pollution, to combat wildlife trafficking, to promote sustainable forest management, to conserve marine species, and to prevent the loss of biodiversity,” the office of the US Trade Representative wrote in the summary of its proposals on environment chapter. “The proposed text also includes provisions on fisheries-related matters, such as addressing illegal, unreported, and unregulated fishing and fisheries subsidies that contribute to overfishing and overcapacity.”
The teams negotiating a new trade deal between Kenya and the US will listen to views from stakeholders in the wake of Washington tabling fresh texts on mitigating pollution, fighting wildlife trafficking and addressing unregulated fishing.
Senegal joins oil-producing nations with launch of first offshore field (RFI)
Senegal has joined the ranks of oil-producing nations with Australian company Woodside Energy on Tuesday announcing the start of production in the West African country’s first offshore project. After several years of delay, Woodside said it had begun extracting oil from the offshore Sangomar field, about 100 kilometres south of the capital Dakar. The floating facility has a storage capacity of 1.3 million barrels. At a depth of 780 metres, it contains both oil and gas and is expected to produce between 100,000 and 125,000 barrels per day.
While Senegal’s fossil fuel output is not expected to be as high as that of bigger producers such as Nigeria, there are hopes the oil and gas industry will bring billions of dollars in revenue to the country and contribute to transforming its economy. The extracted oil, meeting European and Asian market standards, is intended for export and the national market.
Nigeria: Key Recommendations from the Presidential Fiscal Policy and Tax Reforms Committee (Proshare)
The Presidential Fiscal Policy and Tax Reforms Committee, led by Mr Taiwo Oyedele, have made bold and audacious recommendations to transform the Nigerian business environment and economic landscape. If implemented, these recommendations will have far-reaching economic implications.
The Committee is recommending broad-based Priority Sector Incentives to guarantee sector-based, tenured and transparent incentives for businesses that are targeted at promoting economic development. The Committee also recommends the following changes to the VAT and Excise Duties, among others: Zero-rated list expanded to include agriculture, medical and educational and other basic consumptions, and Exports of services and intellectual property to be zero rates
World Bank, Trade Ministry partner NSC to tackle multiple-inspection border posts (Tribune Online)
The Ministry of Trade and Investment, alongside the World Bank and the Nigeria Shippers’ Council (NSC), have identified simplified trade processes and procedures at the seaports, across states and regional borders as imperative for economic growth. Speaking recently when the Enhanced National Trade Facilitation Committee and representatives of the World Bank visited the NSC in Lagos, the Minister of Trade and Investment, Dr. Doris Udoka-Anite explained that the benefits of achieving harmonised, standardised and simplified trading processes and procedures are immense and cannot be over-stated.
Udoka-Anite, who was represented by an Assistant Director in the Office of the Minister, Dr. Brenda Max-Nduagube, noted that trade facilitation has been a focal point of discussions at national, regional and international levels. “This is ever more important to small and medium-scale enterprises where the NTFC helps create a more business-friendly environment for SMEs venturing into global markets. This translates to increased competitiveness, growth potential and a more level playfield,” the Minister stated.
Guinea partners with UNCTAD to boost e-commerce sector growth (Innovation Village)
The Republic of Guinea is taking proactive steps to expedite the expansion of its e-commerce sector by seeking a collaborative partnership with the United Nations Conference on Trade and Development (UNCTAD). The move towards this strategic alliance was initiated during conversations held at the World Summit on the Information Society in Geneva, involving Guinea’s Minister of Posts, Telecommunications, and Digital Economy and the Director of Technology, Innovation, and Research at UNCTAD.
A press statement issued by the Guinean ministry highlighted that the primary objective of these discussions was to deliberate on potential cooperative efforts between Guinea and UNCTAD, with a particular focus on bolstering e-commerce. During the meeting, the Guinean Minister provided an overview of the nation’s digital landscape, acknowledging the existing hurdles while also emphasizing the promising opportunities for advancement in the digital arena.
One of the key requests from Guinea was for UNCTAD’s expertise in crafting a regulatory framework conducive to the growth of e-commerce. Additionally, Guinea sought assistance in enhancing the digital competencies of its citizens through specialized technical training programs.
Senegal: Tax Reforms Can Boost Revenues for Social Equity (World Bank)
According to the World Bank’s 2024 Economic Update for Senegal, economic growth in the country proved resilient in 2023 amid political tensions and persistent, albeit declining, inflation. The country’s vibrant primary and secondary sectors supported economic activity despite disruptions in the services sector and a slowdown in export growth. The growth rate stood at 4.3%, up from 3.8% in 2022.
“The new authorities’ desire to strengthen transparency and public financial management is an opportunity to bolster Senegal’s positive medium-term economic outlook. This outlook is, however, contingent in the short term on a commitment to fiscal consolidation and the implementation of transformative reforms that underpin macroeconomic stability,” noted Keiko Miwa, World Bank Country Director for Cabo Verde, The Gambia, Guinea-Bissau, Mauritania, and Senegal.
Benin-Niger oil export row flares again (DW)
Tensions between neighboring West African nations Benin and Niger are escalating amid a deepening dispute over oil exports. This latest flare in tensions comes as Niger accused Benin of kidnapping five of its nationals. Landlocked Niger relies on Benin’s Seme port to export its crude oil, which flows to Benin through an almost 2,000-kilometer (1,200-mile) Chinese-built pipeline from its Agadem oil field. Benin authorities arrested the Nigerien citizens at its Seme port last week after they illegally entered the port, where the storage tanks for the cross-border pipeline are located.
“We are no longer going to send our oil through the pipeline until the Beninese decide to honor their commitment,” Niger’s petroleum minister Mahamane Moustapha Barke said following the arrests. According to African Energy, stopping the oil flow would deprive Benin of oil transit fees worth $31 million (€28.9 million) a year.
Chad Seeks UNECA Collaboration to Boost Digital Transformation (We are Tech)
The Chadian government launched an ambitious Strategic Plan for Digital and Postal Development in 2020, demonstrating its commitment to bridging the country’s technological gap. Chad’s Minister of Communications, Digital Economy, and Administration Digitalization, Boukar Michel, met with United Nations Economic Commission for Africa (UNECA) Executive Secretary Claver Gatete on the sidelines of the ICANN80 summit in Kigali, Rwanda, on June 10th.
The discussion centered on fostering collaboration to address key challenges and unlock opportunities in Chad’s digital sector. Minister Michel presented the country’s Strategic Plan for Digital and Postal Development 2020-2030 (PSDNP) and the new president’s digital policy platform. This presentation, according to a ministry statement, aimed to showcase Chad’s digital ambitions and priorities, outlining both completed and planned initiatives.
The Economic Community of West African States (ECOWAS) Commission has on Monday 10th June 2024, launched the National Platform for the ECOWAS Cross-Border Cooperation Support Programme 2023 – 2027 In Praia, Cabo Verde.
“The ECOWAS Cross-border Cooperation support programme is not for a few of the Member States, but it’s for all the Member States”, Director of Free Movement of Persons and Migration, Mr. Albert Siaw-Boateng, stressed, adding that the programme actually started all the way back from 2006 and has had several phases with the last phase being from 2023 to 2027.
He went further to explain that the programme started with nine (9) Member States namely Benin, Côte d’Ivoire, The Gambia, Ghana, Guinea-Bissau, Niger, Nigeria, Senegal and Togo, and each received a grant of $100,000 to implement projects they had identified. “The programme is now extended it to Cabo Verde, Liberia and Sierra Leone”, the Director of Free Movement, gladly informed.
For Coordinator of the ECOWAS National Unit, Dr Isa Morais, Cabo Verde joining the Cross-Border Cooperation programme would enable the implementation of the project “Strengthening Opportunities and Fostering Integration: Regular Stay, Economic Activity and Social Participation of Immigrants from ECOWAS Countries in Cape Verde”, which she argued that offers the opportunity to improve the living conditions of ECOWAS nationals in Cabo Verde.
Africa sees rise in e-commerce, digital marketplace (DW)
Africans are gradually embracing the convenience of online shopping. However, this trend is still in its early stages in Africa, compared with more established markets such as Asia, Europe and the United States. Projections by the McKinsey Global Institute suggest that by 2025, e-commerce could account for 10% of all retail sales in Africa’s largest economies: Nigeria, South Africa and Egypt.
But according to experts, though the e-commerce sector holds significant potential in Africa, it faces challenges related to cultural and logistical factors. These considerations are crucial when customizing products and services to align with local preferences.
Internet penetration has grown in Africa, with around 570 million internet users in 2022 — a number that more than doubled compared to 2015, according to statista. But for e-commerce to thrive on the continent, some barriers need to be addressed.
Fiber-optic leap bridges African digital divide (DW)
Tech companies such as Google and Facebook parent Meta are investing in new data highways and speeds for Africa. The first Google Cloud data center on the African continent has been up and running since January in Johannesburg, South Africa. “The big US tech giants have recognized the existing connectivity gaps and the need for additional investment associated with this as a major business opportunity,” Tevin Tafese, data scientist at the German Institute of Global and Area Studies, told DW.
Google had committed $1 billion in 2022 to driving Africa’s digital transformation, including undersea cables for faster internet connections. One of the projects is called Umoja — named after the Swahili word for unity — and aims to be the first ever fiber-optic cable connecting Africa directly to Australia.
“It is expected that these projects will significantly improve internet access in Africa, speed up the connection and reduce prices,” said Tafese, pointing out that reliable internet access leads to increased productivity and higher rates of employment.
Africa-Asia Air Cargo Demand Leads Global Markets in April 2024 (360 Mozambique)
In an impressive development, airlines in the Africa-Asia corridor have reported a substantial surge in cargo demand, outperforming their counterparts in North America and the Middle East. The International Air Transport Association (IATA) revealed these findings in its latest sector report, highlighting the dynamic shifts in global air cargo trends for April 2024. This robust performance is indicative of the growing economic ties and the burgeoning trade between Africa and Asia, presenting new opportunities and challenges in the global air freight industry.
In April 2024, air cargo demand in the Africa-Asia market soared by an astounding 25.8% year-on-year. This growth was supported by an 18.7% year-on-year increase in capacity, indicating that airlines in the region are not only experiencing higher demand but are also expanding their capabilities to meet this demand. This increase underscores the strengthening trade links and the rising economic activities between these two regions. The growth in cargo demand is not merely a reflection of increased trade volumes but also signifies improvements in logistics infrastructure and air connectivity across Africa and Asia.
The diversification of supply chains post-pandemic has seen many companies looking towards Africa for raw materials and manufacturing opportunities. This shift has naturally increased the demand for air cargo services, which offer faster and more reliable transport options compared to sea freight.
ECOWAS Reviews the Implementation of the New Transit Procedure and SIGMAT in Member States (ECOWAS)
The Directorate of Customs Union and Taxation of the ECOWAS Commission has organised a meeting on the New ECOWAS Transit Procedure from June 10th to 13th, 2024 in Abuja, Nigeria to review the implementation of the Abidjan roadmap and take stock of the implementation of the Interconnected System for the Management of Goods in Transit (SIGMAT) in member States and examining the draft transit manual of procedures among others.
In his opening remarks, Nafi Isiyaku, Comptroller Trade Facilitation, Preferential Trade and AfCFTA of the Nigeria Customs Service and Chairman of the meeting, stressed that transit procedures constitute a crucial component of customs operations and trade facilitation. He encouraged delegates to propose actionable proposals and recommendations to enable Member States leverage on the Economic integration of the Region.
The President of the AfCFTA Young Entrepreneurs Federation (AfYEF), a pan-African youth-centered organization has called on policymakers to intensify efforts to abolish all trade barriers affecting trade across the continent. Prince Siita Sofo Hissan mentioned VISA restrictions and high import duties as top of the challenges hindering the progress of trade in the African continent, urging African leaders to work towards removing such restrictions, especially in trade among African countries. He believes this will help young African business owners advance trade among themselves and thus lead to economic growth across the continent.
Prince Siita who was speaking at an event to mark the third-anniversary celebration of the AfYEF on Monday said such restrictions defeat the purpose of establishing the AfCFTA which aims at ensuring free trade among Africans. “Our vision is to see a continent where young entrepreneurs and women in trade can thrive and contribute to economic growth and development,” he said.
Namibia to host SADC parliamentary meeting (The Namibian)
The African Group of Negotiators Experts Support (AGNES) has announced plans to host its second southern Africa parliamentarian regional meeting in Namibia. The two-day event, scheduled from 31 July to 2 August, will focus on strengthening the capacity of national parliaments to oversee climate action accountability and reporting. This initiative builds upon the success of AGNES’ inaugural southern Africa meeting held with Botswana’s National Assembly in September 2023.
AGNES research associate Shadrack Arum underscores the critical role parliaments play in implementing climate mitigation measures. He emphasises the importance of fostering collaboration between policymakers, experts and negotiators to enhance regional climate adaptation strategies. Arum notes that national parliaments serve as linchpins in addressing climate change through their core functions – representation, oversight, legislation and budget approval.
“We aim to develop model climate change laws adaptable by member states, as many face hurdles in crafting their own legislation. Equipping lawmakers with the necessary tools is paramount to achieving these goals,” says Arum.
FAO pledges US$10 million for SADC to support 13 million people affected by drought and floods (Namibia Economist)
The SADC region faces a humanitarian crisis because of the ongoing El Niño induced drought and floods that are negatively impacting the lives and livelihoods of millions of people in the region. Across the southern half of the region, many areas experienced significant crop water deficits resulting in reduced crop production while Malawi, Namibia, Zambia and Zimbabwe have declared states of national disaster due to the drought. According to the SADC El Nino Appeal, an estimated 60 million people in Southern Africa are food insecure.
Noting the multifaceted and cascading impact of El Niño across multiple sectors, especially Agriculture and Livelihood Security, Food Security, Nutrition, Health, Water, and Energy, SADC Member States during the Extra-Ordinary Virtual Summit of SADC Heads of State and Government on El Niño induced drought and floods, held in May this year, launched the SADC Regional Humanitarian Appeal of US$5.5 billion and called for coordinated, integrated, and harmonized interventions to address the adverse impact of El Niño.
To meet the urgent humanitarian needs in the affected Member States and communities, FAO developed a US$ 360 million El Nino Regional Response and Preparedness Plan (ERRP) that aims to provide humanitarian support to 13 million people in Southern Africa mostly affected by the El Nino droughts and floods. “We know that the actual needs in the Member States far exceed this. The FAO ERRP takes cognizance of the potential for early smallholder farmer recovery through the harnessing of off-season food production avenues as well as harnessing the opportunities for better crop performance through the forecasted La Niña,” said Patrice Talla, FAO Subregional Coordinator for Southern Africa.
Strengthening financial systems for sustainable development in Africa (UNECA)
In a significant step toward bolstering public finance systems, experts and stakeholders from across Africa gathered today for a workshop on Integrated National Financing Frameworks (INFFs). The two-day event at the United Nations (UN) Conference Center in Addis Ababa aims to strategize on mobilizing and utilizing financial resources to achieve the sustainable development goals (SDGs) in Africa.
First introduced in the 2015 Addis Ababa Action Agenda, INFFs are designed to strengthen public and private financing for sustainable development. They align financing policies with national development plans, fostering collaboration between public and private sectors. Africa is at the forefront of this initiative, with over 40 governments embracing the approach.
In her opening remarks, Zuzana Schwidsowski, Director of the Macroeconomics and Governance Division at the Economic Commission for Africa (ECA), called for immediate action. “We are entering an era of poly-crises, characterized by multiple shocks, including pandemics, climate change, and economic and financial stresses,” she said. “These challenges jeopardize our progress in sustainable development. The need to raise financial resources to accelerate SDG implementation is more urgent now, given that we are less than seven years from attaining Agenda 2030.”
Ms Schwidsowski highlighted the severe financing gap, estimated to range from $200 billion to $1.3 trillion annually, as detailed in the ECA’s Economic Report on Africa 2020. She stressed the importance of domestic resource mobilization and the role of INFFs in integrating national plans with available resources.
The AU and ILRI set to develop first-ever guidelines to help African governments (Farmers Review Africa)
New guidelines to support African governments to improve food safety across the continent’s vast informal food sector are set to be developed for the first time. The African Union (AU) and the International Livestock Research Institute (ILRI) have joined forces to produce the first framework for addressing the unique challenges faced by a vital but often overlooked informal food sector.
Africa’s informal sector is critical for food security, employment, and livelihoods, particularly for the continent’s urban poor. Roughly 70 percent of Africa’s urban households buy food from informal markets, which includes street vendors, kiosks, and traditional market sellers, among others.
However, food safety in Africa’s domestic markets, including informal markets, has been historically neglected, or mismanaged. Some 90 million Africans become sick from foodborne illness every year, costing an estimated US$16 billion in productivity losses. In comparison, the international community invests just US$55 million per year in food safety projects on the continent.
The new guidelines seek to reflect the realities of African food systems to improve the ways in which African governments engage with the informal sector in their efforts to improve the safety of foods. Embracing and engaging with the informal food sector as a cornerstone of food systems transformation is likely to play a key role in the post-Malabo agenda.
Trade and development then and now: Key trends over the decades (UNCTAD)
Developing countries have greatly increased their participation in global trade over the past six decades since UN Trade and Development’s creation. From 1964 to 2023 their share of world merchandise trade rose from 22% to 44%. While regional disparities persist and not all countries have benefited equally – the least developed countries’ share is under 1% – trade has generated unprecedented prosperity overall.
While developing countries have long been major loading points for goods carried by sea, their share of the goods unloaded has climbed, surpassing 50% in 2011 and peaking at 61% in 2020. This trend reflects their growing role as consumers in the global market. It also highlights their increased participation in global value chains since merchandise imports include semi-finished goods. However, this participation varies, with Asia, particularly China and neighboring East Asian economies, being the primary contributors.
AGOA: 25 Years of US-Africa Mutual Benefit (BORGEN)
The African Growth and Opportunity Act (AGOA), enacted in 2000, grants African countries with certain criteria access to more than 1,800 duty-free products in the United States (U.S.). AGOA plays a crucial role in fostering economic growth and reform across Africa. From 2017 to 2020, the U.S. ranked among Africa’s top three largest export destinations, alongside the European Union (EU) and within Africa’s intercontinental trade. This legislation exemplifies the mutual benefits AGOA provides to both Africa and the U.S.
Discussions around the AGOA are intensifying as it approaches renewal this year. Initially enacted for 15 years, Congress extended AGOA for another decade, with the current term ending in 2025. Senators Chris Coons (D-Del.) and James Risch (R-Idaho) introduced the renewal bill, which reached the Senate floor in September 2023. The Senate Finance Committee is reviewing the bill, and AGOA will expire this year without further action.
Over its 25-year history, the AGOA has significantly boosted the imports and exports of qualifying countries, particularly in textiles and apparel exports to the U.S. Kenya, a major contributor, sends 67.6% of its textile exports to the U.S., illustrating the act’s quality of mutual benefit between Africa and the U.S. Under the act, Kenya’s export sales soared from $55 million to $603 million over the last 23 years. Ethiopia, Mauritius, Lesotho, Ghana and Madagascar have also experienced substantial growth in this export category.
Export-import bank sees future of African-Caribbean trade and commerce (Barbados Today)
If the Caribbean and Africa put the same kind of effort into expanding trade as they did in cooperating to secure vaccines during the height of the COVID-19 pandemic, more African and Caribbean products would be exchanged across the Atlantic and on both regions’ supermarket shelves.
Okechukwu Ihejirika, the acting chief operating officer of the Africa Export-Import Bank (Afreximbank) CARICOM office in Barbados, is not only convinced of that, but he is confident that when the 31st Afreximbank Annual Meetings (AAM) and the third edition of the AfriCaribbean Trade and Investment Forum (ACTIF2024) take place in the Bahamas this week, solutions will be found to the challenges that prevent the expansion of trade.
In an interview with Barbados TODAY ahead of the joint event which begins on Wednesday, Ihejirika was passionate about his vision for enhanced trade between the two regions. Asked why he believed this had not become a reality, he first referred to Africa and the Caribbean overcoming logistical challenges to ensure citizens got much-needed vaccines in 2021.
Progress on basic energy access reverses for first time in a decade (IEA)
A new report by the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO), released today, finds that the world remains off course to achieve the Sustainable Development Goal (SDG) 7 for energy by 2030.
SDG 7 is to ensure access to affordable, reliable, sustainable and modern energy. The goal includes reaching universal access to electricity and clean cooking, doubling historic levels of efficiency improvements, and substantially increasing the share of renewables in the global energy mix. Attaining this goal will have a deep impact on people’s health and well-being, helping to protect them from environmental and social risks such as air pollution, and expanding access to primary health care and services.
The 2024 edition of Tracking SDG 7: The Energy Progress Report warns that current efforts are not enough to achieve the SDG 7 on time. There has been some progress on specific elements of the SDG 7 agenda – for example, the increased rate of renewables deployment in the power sector – but progress is insufficient to reach the targets set forth in the SDGs
Quick links
Anbessie Yitbarek: Biggest hindrance in Africa airspace is inter-connectivity (The East African)
Africa’s freeports should boost trade and foreign exchange earnings (The Conversation)
The five hurdles to Africa’s continental free trade area (fDi Intelligence)
Shrinking Chinese demand, loan volumes weaken Africa’s growth prospects (ORF)
G20 in Fortaleza: world delegates seek solutions for global financial challenges (G20 Brasil 2024)
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VW, Isuzu Spurn South Africa’s Efforts to Kick-Start EV Industry (Bloomberg)
Volkswagen AG and Isuzu Motors Ltd. have expressed skepticism about South Africa’s plans to develop electric and hydrogen-powered vehicle industries. While the government in February announced that automakers will be allowed to claim a 150% tax deduction on investment in facilities to make the vehicles, the local heads of both companies said they’ll stay focused on internal combustion engine vehicles.
The country’s automotive industry, which accounted for more than 271 billion rand ($14.5 billion) in exports last year, is currently dependent on shipments to the European Union where legislation is expected to gradually reduce demand for vehicles that run on diesel and gasoline.
BMA refutes claims of inefficiency at ORTIA (SAnews)
Border Management Authority (BMA) Commissioner, Dr Michael Masiapato, has refuted claims regarding the functionality and efficiency of the OR Tambo International Airport (ORTIA) passenger movement processing system. The BMA has noted with concern several erroneous reports suggesting that systemic transitions are taking place at ORTIA in Gauteng. The authority said these false reports have caused unnecessary concern among travellers and stakeholders.
“The current processing systems at BMA Immigration services is fully operational and designed to handle the high volume of traffic efficiently. “There are no system challenges at ORTIA or any of our ports, contrary to the claims made in the public domain. Our records indicate that average processing times at ORTIA remain within acceptable international standards. “We continuously monitor and analyse processing times to identify and address any potential bottlenecks,” Masiapato said.
Republic of South Sudan: 2023 Article IV Consultation (IMF)
South Sudan is a very fragile post-conflict country, and one of the most vulnerable in the world to climate change effects. The spillovers from the fighting in Sudan have exacerbated an already dire humanitarian situation. Two-thirds of South Sudan’s population was exposed to acute food insecurity prior to the outbreak of the conflict in Sudan and the situation has worsened due to a large and growing number of refugees, and a sharp increase in fuel and food prices in the border areas with Sudan driven by trade disruptions. The Sudan war has also delayed the needed repair of the pipeline that transports South Sudan’s crude oil to international markets through Sudan. As a result, oil exports have since mid-February 2024 collapsed to about one-third of their previous level. This has increased significantly the fiscal financing and balance of payments gaps given that oil exports account for nearly 90 percent of fiscal revenues and 95 percent of exports.
Tunisia stands to gain from its membership to AfCFTA to become Africa’s gateway, says Anis Jaziri (African Manager)
Tunisia stands to gain from its membership to the African Continental Free Trade Area (AfCFTA), which offers a number of incentives to investors, including exemption from customs duties, so that it can become a gateway to Africa, President of the Tunisia-Africa Business Council (TABC) Anis Jaziri said on Tuesday.
Speaking at the opening of the 7th edition of the Financing Investment & Trade in Africa (FITA 2024), held on June 11-12 in Tunis, Jaziri added that this event offers Tunisia the possibility to become an economic gateway to sub-Saharan Africa, indicating that “the important number of participants testifies to the confidence in Tunisia as a strategic investment destination given its openness to Europe and Africa.”
As for the Nigerian market, Jaziri said it is a market with over 200 million people, including 100 million muslims, adding that 35 Nigerian businessmen will partake in this forum and that a business mission to Nigeria will be organised next September.
The African Continent remains a land of opportunity, wealth, growth and intelligence despite the various challenges it faces, citing migration, climate change and political crises, Minister of Industry, Energy, Mines Fatma Thabet Chiboub said. These challenges can be beaten, she argued, calling for natural resources to be harnessed and for African industry to be developed.
The Southern African Development Community (SADC) Committee of Ministers Responsible for Gender and Women’s Affairs met virtually on 07 June 2024 to review progress in the implementation of the SADC Gender Programme. The Ministers encouraged Member States to prioritise appointment of women in political positions and key decision-making positions.
The Ministers discussed and made decisions on the following issues: Gender mainstreaming in SADC; implementation of the Regional Multi-Dimensional Women’s Economic Empowerment Program (RMD-WEEP); Women, Peace and Security Agenda; Women in Politics and Decision-Making Positions; and commitment to the SADC Protocol on Gender and Development.
ACTESA and ISAAA AfriCenter Sign MoU (COMESA)
The Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) has signed a Memorandum of Understanding (MoU) with the Acquisition of Agri-biotech Applications (ISAAA AfriCenter) to implement the COMESA Biotechnology Implementation Plan (COMBIP). The MoU signed in Lusaka on 5 June 2024 outlines several areas where ISAAA AfriCenter and COMESA-ACTESA will work together which includes rolling out a communications strategy on agricultural biotechnology and biosafety to raise awareness and address misinformation through facilitating appropriate stakeholder engagement platforms.
Speaking at the signing ceremony, COMESA-ACTESA Chief Executive Officer Dr John Mukuka said the institution is looking forward to the collaborative effort that the MoU brings as the two parties are ready to work together and implement the activities. “We are happy about this collaboration because we believe that increased awareness and understanding of agricultural biotechnology and biosafety in the COMESA region is needed and a more informed public discourse is long overdue,” Dr Mukuka added.
ECOWAS makes case for promotion of Healthy Building Blocks to Strengthen Multilateralism at the United Nations (Modern Ghana)
Desirous of promoting the cherished ideas of multilateralism and the accepted principles of mutual coexistence across regions and races, the Economic Community of West African States ECOWAS has taken its evolving building blocks for the strengthening of multilateralism to the United Nations UN. The ECOWAS Commission’s Commissioner for Political Affairs, Peace and Security Amb Abdel-Fatau Musah made this in-road on the occasion of the ECOWAS @ 49 high-level event which held at the ECOSOCC chamber on the 7th of June, 2024 at the UN headquarters in in New York, USA.
Amb Musah Musah who was standing in for the ECOWAS Commission’s President Omar Alieu Touray, used the occasion to draw meaningful correlation between regionalism, democracy and development in the West Africa. Today, he noted, the West African regional block holds aloft its big dream of interconnectivity whether on land, at sea and in the air, and has established a good number of entities and integration schemes in this regard, such as common external tariff as well as a few others billed to boost economic interdependence including some others that are still in the works.
Global financial reform takes centre stage at African Development Bank annual meeting (African Business)
Speaking at the 59th annual meeting of the African Development Bank (AfDB), held in Nairobi in May, Dr. Benedict Okey Oramah, Afreximbank President, noted that Africa’s economy, while beset by challenges ranging from high debt to lower global capital inflows, has remained remarkably resilient amidst the challenging backdrop. However, growth without transformation and regional integration will not be impactful. “At ACET, we define economic transformation as growth that is accompanied with improvements in diversification, export competitiveness, productivity, technology, and human well-being,” Mavis Owusu-Gyamfi, executive director and incoming CEO and president of the African Center for Economic Transformation (ACET) told delegates.
Owusu-Gyamfi also called for faster regional integration. “We must trade with each other and not just look outward. The rest of the world wants our raw materials and we need finished products. Let’s collaborate to build these finished products and first sell them in the region and over time we will gain access to global markets,” she observed. This, she says, will require African countries to ratify the AfCFTA protocols so that skilled people can move freely across the continent to take jobs where they are available, and so that “the individual pieces that make up a finished product can move across countries quickly and safely.”
AfDB, AU, IFAD Advance Ties to Boost Africa’s Food Production (This Day Live)
Top development organisations have pledged to forge partnerships to expand the Vision for Adapted Crops and Soils (VACS) that would build resilient African food systems based on diverse, nutritious, and climate-adapted crops grown in healthy soils. They made the pledge recently at the sidelines of the African Fertilizer and Soil Health Summit in Nairobi where they called on African countries to join the VACS strategic partnership by aligning with the AfDB’s flagship initiative known as Technologies for African Agricultural Transformation (TAAT).
The AfDB Group Vice President, Dr. Beth Dunford, said: “I am excited to see how the bank through its TAAT initiative, the United States Department of State, the African Union, International Fund for Agricultural Development (IFAD) and CGIAR centers are developing a relationship to advance the work of VACS, also Feed the Future and the African Union Fertilizer and Soil Health Action Plan, and the Soil Initiative for Africa.”
MDBs’ common approach to measuring climate results (AfDB)
At COP28, multilateral development banks (MDBs), including the African Development Bank, agreed to develop a common approach for measuring and reporting climate results. Historically, MDBs have jointly reported climate finance volumes, but this has not fully captured the tangible impacts of these interventions. The new agreement aims to provide a comprehensive understanding of the outcomes of climate investments, enhancing learning and identifying areas needing additional support.
The common approach adopted by MDBs ensures transparency, consistency and comparability across institutions and contributes to global efforts to establish standardized frameworks for assessing climate progress. It represents a significant advancement in the way climate finance impacts are measured, reported, and utilized to drive effective climate action worldwide.
Webinar discusses leveraging digital technologies to revolutionize customs operations (WTO)
The WTO hosted on 10 June the third session in its webinar series on trading goods in the digital era, showcasing the transformative potential of digital technologies in customs operations and the need for continued innovation and collaboration. The webinar emphasized the increasing adoption of technologies such as electronic data interchange, blockchain, artificial intelligence and big data analytics by customs authorities.
DDG Paugam: WTO system prerequisite to achieving steel decarbonization, climate goals (WTO)
In a keynote speech delivered at the opening of the worldsteel annual Open Forum in Brussels on 11 June, Deputy Director-General Jean-Marie Paugam underlined the importance of the WTO and the multilateral trading system in achieving global climate change objectives. A “fragmented system of uncoordinated environment-related trade policies will only hinder decarbonization efforts, contrary to our shared goals,” he declared.
Forward together: Making trade work better for the planet (UNCTAD)
The global production and distribution of goods contribute to about a quarter of all carbon dioxide emissions and to a significant share of biodiversity loss and global pollution. UN estimates show that agricultural expansion alone drives 88% of global deforestation.
In 2021, about 17% of global exports were biologically based products, rising to 40% for low-income economies. Global exports of plastics have more than doubled in value since 2005, reaching nearly $1.2 trillion in 2021. The fast-growing digital economy adds to the impact on the environment, increasing waste, energy consumption and emissions. Global e-waste surpassed 53 million metric tons in 2019, and data centers consume 6% to 12% of global energy.
In this context, trade remains an underutilized or misused tool in climate action. It can enhance access to energy-efficient goods and the technologies needed for the energy transition and climate change adaptation and mitigation. Aligning trade more with climate and environmental objectives can create new, sustainable opportunities.
Other articles in the Forward together series:
Building more diverse and resilient economies
Making e-commerce and the digital economy work for all
Navigating the growing challenges of public and external debt
Global Growth Is Stabilizing for the First Time in Three Years (World Bank)
Global growth is projected to hold steady at 2.6% in 2024 before edging up to an average of 2.7% in 2025-26. That is well below the 3.1% average in the decade before COVID-19. Overall, developing economies are projected to grow 4% on average over 2024-25, slightly slower than in 2023. Growth in low-income economies is expected to accelerate to 5% in 2024 from 3.8% in 2023. However, In advanced economies, growth is set to remain steady at 1.5% in 2024 before rising to 1.7% in 2025.
“Four years after the upheavals caused by the pandemic, conflicts, inflation, and monetary tightening, it appears that global economic growth is steadying,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President. “However, growth is at lower levels than before 2020. Prospects for the world’s poorest economies are even more worrisome. They face punishing levels of debt service, constricting trade possibilities, and costly climate events. Developing economies will have to find ways to encourage private investment, reduce public debt, and improve education, health, and basic infrastructure. The poorest among them—especially the 75 countries eligible for concessional assistance from the International Development Association—will not be able to do this without international support.”
Brics discusses trading in local currency, African Union, and Palestine (Business Standard)
In a meeting in Nizhny Novgorod, in western Russian on Tuesday, Brics nations carried on talks of enhanced use of local currencies in trade and financial transactions between the member countries, support to African units and its peace efforts in the continent, and support to Palestine’s bid for full membership in the United Nations (UN). A joint statement issued after the meeting reaffirmed the Brics foreign ministers’ commitment to strengthening the Brics Strategic Partnership under three main pillars: Politics & security, economy & finance, and cultural & people-to-people exchanges.
The meeting on Tuesday was the first ministerial gathering following the 2023 Brics expansion, which saw Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE join the original members: Brazil, Russia, India, China, and South Africa.
Here are some key points discussed by the Brics group:
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The ministers highlighted the G20’s crucial role in international economic cooperation and welcomed the African Union’s inclusion as a member during the G20 New Delhi Summit. They expressed support for the consecutive G20 presidencies of India, Brazil, and South Africa from 2023 to 2025, aiming to address global economic inequalities and imbalances.
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Ministries also agreed to continue following the “African solutions to African problems” principle and supporting peace efforts undertaken by the African Union, and African sub-regional organisations.
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The ministers stressed the importance of fully implementing the UN Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. They opposed unilateral protectionist measures that disrupt global supply chains and supported an inclusive, rules-based multilateral trading system, with special treatment for developing countries.
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The ministers highlighted the importance of enhancing the use of local currencies in trade and financial transactions among Brics countries, referring to paragraph 45 of the Johannesburg II Declaration, which tasked Finance Ministers and Central Bank Governors to consider the same.
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The ministers also advocated for a transparent, inclusive, non-discriminatory and rules-based multilateral trading system with the World Trade Organisation (WTO) at its core, with special and differential treatment for developing countries, including least developed countries. They committed to provide support for the necessary WTO reform with the aim of strengthening resilience, effectiveness and efficiency of the organisation.
Putin confirms Brics’ independent payment system in the pipeline (Bizcommunity)
Russian President Vladimir Putin has confirmed that Brics is developing its own independent payment system. Addressing a crowd of 12,000 attendees from more than 100 countries of the world at the 27th annual St Petersburg International Economic Forum (SPIEF), Putin said such a transaction system would be “unmoved by political pressure, abuse and external sanctions”.
The proposed new Brics payment system stands to form the backbone of cross-border payments that will strengthen the financial, technological and personal sovereignty of Russia, increase its production capacity and increase the competitiveness of Russian products both in foreign markets and in its own domestic market.
“It is no secret, of course, that the reliability of, and trust in Western payment systems has been thoroughly undermined, and by the Western countries themselves. Together with foreign partners, we will increase the use of national currencies in foreign-trade settlements, and increase the safety and efficiency of such operations through the Brics line.”
Putin underscored the importance of Saudi Arabia, Iran, the United Arab Emirates, and Egypt having recently joined Brics, and emphasised how this has increased the group’s contribution to global GDP to 36%, and which now represents 46% of the world’s population.
“Brics has significant potential to welcome new members, and there is strong interest from partners across various continents to develop these connections. We, of course, welcome, support, and will continue to develop relations within the framework of Brics, not only in the fields of economics, finance, and security, but also in other areas where humanitarian co-operation is paramount,” Putin said. “We will act, taking into account global challenges and objective trends, emphasising the growing opportunities of national economies.”
BRICS gathered in Geneva to discuss a new digital order (Africa.com)
We need some form of international agreement on the regulation of digital ecosystems, especially given the development of AI technologies,” emphasized Alexey Ivanov, Director of the BRICS Competition Law and Policy Center. The UN Trade and Development (UNCTAD) Webinar on Competition law and policy approaches towards digital platforms and ecosystems in cooperation with the BRICS Competition Law and Policy Centre and the Brazilian Administrative Council for Economic Defense (CADE) was held on June 3, in Geneva, Switzerland.
The digitalization of the economy – legislature, trade, customs, logistics, etc. – is just entering its most active stage of development, itself a preparatory stage for the automation of the economy. One of the most pressing issues now, at the initial stage of digitalization, is still the streamlining and creation of a regulatory framework for future global processes. This includes the issue of antitrust regulation, both within individual countries and various interstate associations, such as the EU or BRICS.
“Today, the actions of antitrust agencies in different countries remain disparate and fragmented. Lack of consensus leads to weakened enforcement, and ecosystems increase anti-competitive pressure on the market. Antitrust law is on the verge of losing its relevance and strength in the digital economy. We need some form of international agreement on the regulation of digital ecosystems, especially given the development of AI technologies,” emphasized Alexey Ivanov, Director of the BRICS Competition Law and Policy Center.
Quick links
Empowering China-Africa Trade: Stanbic Bank Kenya’s Initiatives (Africa24.it)
UN Trade and Development: Pioneering global economic and development thought for decades (UNCTAD)
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Economic reforms needed for growth, job creation – President Ramaphosa (SAnews)
President Cyril Ramaphosa has used his weekly newsletter to call for a continuation of economic reforms in order to stimulate economic growth and job creation, and to attract investment.
“Regardless of the form or composition of the incoming administration, it is important that the momentum of reform be retained and sustained. While we have come a long way in the reform journey, there is much work that still needs to be done to reignite growth in our economy. A change in direction would derail the positive progress that has been made and take us back to the starting blocks.
“At this important moment in the life of our nation, eradicating poverty and inequality and reducing unemployment must remain our overriding collective priorities. We cannot address these challenges and improve the lives of our people without attracting more investment in our economy and accelerating growth,” he said.
The President explained that since it took office, the sixth administration has been focused on economic growth, transformation and job creation driven by a range of economic reforms in sectors including electricity, water and logistics through Operation Vulindlela.
Egypt, South Africa strengthen ties, discuss regional challenges at BRICS Meeting (Dailynewsegypt)
Egyptian Foreign Minister Sameh Shoukry and South African Minister of International Relations and Cooperation Naledi Pandor met on Monday during the BRICS Foreign Ministers meeting in Nizhny Novgorod, Russia, to discuss bolstering bilateral relations and addressing pressing regional and global issues. The two ministers affirmed their commitment to elevating the bilateral relationship to a strategic partnership, encompassing cooperation and coordination across various sectors of mutual interest.
The ministers emphasised the importance of enhancing coordination between Egypt and South Africa on a range of African issues, particularly those concerning the African Union, including the upcoming elections for the Commission leadership in 2025.
Namibia looks implement visas 31 countries (Travel Agent Central)
Namibia could soon implement a visa program for countries that have not reciprocated “the favorable treatment,” which would include the United States, along with 30 other countries. Namibia’s Ministry of Home Affairs, Immigration, Safety and Security says this move was deemed necessary “to ensure parity and fairness in diplomatic interactions.” It adds, however, that the measure “is not intended to hinder legitimate travel.”
No official start date has been announced yet. The nationals from the 31 countries will need to fill out an online visa application prior to travel or be issued a visa upon arrival in Namibia “at an applicable fee.”
Following the announcement, the Southern African Development Community (SADC) Business Council Tourism Alliance expressed “deep concern” regarding the restrictive visa regime, adding it “could severely hamper the country’s tourism industry and economic growth.”
Kenya signs Igad protocol on free movement of pastoralists in Eastern Africa (The East African)
Kenya on Friday signed a protocol of the Intergovernmental Authority on Development (Igad) on the free movement of pastoralists living in border areas in search of pastures for their livestock.
Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi signed the Igad Protocol on Transhumance, which provides a critical framework for free, safe, and orderly cross-border mobility of transhumant livestock and herders in search of water and pasture within the eight Igad member states. “This will help in promoting peaceful coexistence, reduce the risks associated with violence, lead to the protection of the rights and interests of pastoralist communities, including their access to land, water, and grazing resources, and further cooperation and coordination among neighboring countries in addressing common challenges across borders,” Mudavadi said in a statement issued in Nairobi, the capital of Kenya.
Customs recorded 100 improvement on export comptroller (Vanguard)
The Customs command in Seme border said it recorded about 100 per cent increase in the volume of trade in the first five months of 2024. The Seme Border Customs Comptroller, Timi Bomodi disclosed this in an interview with Newsmen in Seme on Sunday.
Bomodi said that on trade facilitation, the service recognised that Lagos-Abidjan corridor was strategically located and considered as the most viable trade corridor in the entire Africa.
“We know that goods from Nigeria end up in other West Africa markets, we also know that goods that are originating from other West African countries come into the Nigeria market. So, there is that symbiotic relationship. Trade facilitation is important to us because without proper facilitation, there will be unnecessary encumbrances,” he said.
See also:
Customs to prioritise non-intrusive inspection, eyes N2.3trn (Daily Trust)
Unstable foreign exchange rate impedes trade facilitation, scares investors- Customs brokers (The Sun Nigeria)
Energy transition: FG targets 30% electricity from renewable energy (The Sun Nigeria)
As part of strategies to achieve its Energy Transition Plan (ETP), the Federal Government, at the weekend, announced a 30 per cent target from renewable energy mix from 30GW by 2030. Minister of Power, Mr. Adebayo Adelabu, stated this at Powering Nigeria’s Energy Future held in Lagos.
He explained that in a bid to promote renewable energy penetration and off-grid solution, the Federal Government is about to commence the World Bank Distributed Access through Renewable Energy Scale-up (DARES) $750 million facility to increase access to electricity for 2.5 million people through deployment of solar home systems and mini grids to households, MSMEs throughout Nigeria, educational and health facilities.
‘‘We believe that the global shift towards renewable energy is not just an environmental necessity but an economic one. Nigeria is blessed with abundant renewable resources, and we aim to continue tapping into these renewable sources to diversify our energy mix, reduce our carbon footprint, and ensure energy security,’’. The Minister noted that sustainable energy development is not just ensuring a stable power supply but involves creating an energy system that is resilient, efficient, and environmentally friendly.
Morocco seen as Dubai’s gateway to Africa as trade ties deepen (ZAWYA)
The Dubai International Chamber, one of the three chambers operating under the umbrella of Dubai Chambers, held 300 B2B meetings during a recent trade mission to Morocco, marking a significant leap in Dubai’s efforts to broaden its economic horizons and create stronger ties with Africa. The trade mission saw representatives from 18 diverse Dubai companies across various sectors like agriculture, cosmetics, construction, energy, trading, and healthcare participate.
As part of the ‘New Horizons’ initiative, the chamber concluded its visit to Senegal and Morocco, signing four memorandums of understanding (MoUs) in the latter and arranging 300 bilateral meetings in Casablanca between companies from Dubai and Morocco. These agreements are expected to pave the way for more opportunities for cooperation between Dubai-based companies and their Moroccan counterparts to drive expansion in promising sectors.
Promising sectors for exports from Dubai to Morocco include aluminium, copper wire, wheat, dates, mobile devices, electronics, and plastics.
Cabo Verde Must Invest in the Blue Economy for Growth and Sustainability (World Bank)
Cabo Verde has shown resilience in the post-COVID-19 pandemic recovery, but the crisis highlighted vulnerabilities such as dependence on tourism and risks from underperforming State-Owned Enterprises (SOEs). Climate change is exacerbating these weaknesses.
In its report, Cabo Verde Economic Update 2024, the World Bank analyzes the state of the Cape Verdean economy in 2023, projects scenarios for 2024, and presents policy options to accelerate fiscal consolidation, reduce debt vulnerabilities, and foster the sustainable growth of the blue economy, thus strengthening resilience to climate and economic shocks.
Real GDP growth is expected to remain stable in 2024 at 4.7%. However, significant risks persist, including possible increases in commodity prices, weaker external demand in tourism markets, and limited progress on the SOE reform agenda. Climate change also remains a threat due to the country’s high vulnerability.
SADC-RTGS migrates to the ISO20022 (SADC Secretariat via X)
The Southern African Development Community Real Time Gross Settlement (SADC-RTGS) which is a regional cross border system in the SADC region has successfully migrated to the ISO 20022 messaging standard, today the 10th June 2024.
ISO 20022 is a global open standard for payments messaging that creates a common language and model for payments data across countries. The SADC-RTGS is an integrated regional electronic settlement system that facilitates cross-border transactions across Southern Africa. It is operated by the South African Reserve Bank (SARB) on behalf of participating SADC central banks. The migration to the new ISO 20022 payments messaging format is a major achievement for the SADC region. It will enable faster payments processing, increased automation and improved reconciliation processes to the benefit of end users.
SADC Launches SADC/FAO Small-scale Fisheries and Food Systems Report (SADC)
The Southern African Development Community (SADC) Secretariat, through its Deputy Executive Secretary for Regional Integration Ms. Angele Makombo N’tumba, launched the highly anticipated SADC/FAO Report “The Contribution of the Small-Scale Fisheries to Healthy Food Systems and Sustainable Livelihoods in SADC”. The launch event took place on 5th June 2024, in Dar es Salaam, Tanzania.
According to Ms. N’tumba, the report is a testament to the contribution of small-scale fisheries to the healthy food systems and sustainable livelihoods in the SADC region as well as the dedication and hard work of many actors within the small-scale fish value chain. The report sheds light on the indispensable value of the SSF sector and provides a roadmap for sustainable development and regional cooperation. It details various aspects of small-scale fisheries, including their economic impact, environmental significance, the challenges they face and key recommendations for policymakers such as governance in small-scale fisheries.
Africa agrees to provide stable supply of minerals to South Korea (The East African)
African leaders gathering in Seoul on Tuesday agreed to ensure an organised, stable supply of minerals to South Korea, enabling the Asian country new entry to critical raw material for energy transition. The assurance was provided in a joint declaration between leaders of South Korea and counterparts or representatives from 48 countries attending the Korea-Africa Summit.
Under the arrangement announced by Korean President Yoon Suk Yeol and Mauritanian counterpart Mohamed Ould Ghazouani as AU Chairperson, the two sides will launch a high-level dialogue through which to discuss the supply from Africa’s mineral-rich countries. Those discussions will also decide how Korean firms can invest in the mineral extraction sectors and how to add value to the products.
“In this context, we agree to launch the Korea-Africa Critical Minerals Dialogue during this summit which will serve as an important institutional foundation for enhancing cooperation between Korea and Africa. In addition, we share a common view on enhancing cooperative efforts to ensure the stable supply of critical minerals and promote technology collaboration related to critical minerals on mutually agreed terms.”
pdf Joint Declaration: 2024 Korea-Africa Summit (188 KB)
Summit Urges Africa to Increase Intra-African Trade to 50% By 2030 (This Day Live)
The Africa Economic Summit Group has urged African leaders to boost Intra-African trade to bolster trade among African nations from the current 14 per cent to 50 per cent. President of the Africa Economic Summit Group, Dr. Sam Ohuabunwa, stated this during a press conference in Abuja where the group intimated journalists of their resolutions to improve Intra-African trade and improve the continent’s economy.
He stressed that to promote intra-African trade, focus should be on the acceleration of the African Continental Free Trade Area (AfCFTA) implementation to stimulate economic growth. “All impediments to full adoption and implementation must be dismantled deliberately. The target is to reach a minimum of 50% of intra African trade by the year 2030 from the present 14%.
Ohuabunwa advised African governments to create a conducive business environment, simplify regulations, minimise bureaucracy, and promote entrepreneurship. He canvassed that gender equity and inclusiveness in African political leadership, with focus on the younger generation, should be deliberately promoted.
According to Ohuabunwa, investment attraction should be the focus of African economic policies — both local and foreign investors — noting that investments create businesses, programmes and projects while programmes, projects and businesses create jobs.
In a packed auditorium at the renowned Chatham House, African Development Bank President Group Dr Akinwumi Adesina delivered an inspiring address to a diverse audience of diplomats, investors, academics, politicians, and media, emphasizing Africa’s untapped potential and abundant opportunities. In his presentation on Friday, “Envisioning Africa’s Economic Prospects,” Adesina explained the reasons behind his optimism and passion for Africa.
However, he said achieving strong economic prospects and resilience will require overcoming some significant headwinds, including tackling climate change and rising debt, and through critical global financial reforms.
“As Africa’s economic resilience is bolstered, unlocking its economic prospects requires ensuring structural change of its economies, raising the productivity of agriculture, provision of electricity, accelerating infrastructure investments, supporting faster pace digitalization, unleashing economic and job opportunities for women and youth, and driving industrialization through greater mobilization of the private sector,” he stated.
Sustainable practices crucial for Africa’s long-term economic growth: PAAC chairman (Peoples Gazette Nigeria)
Chairman, Pan African American Chamber of Commerce, Olatokunbo Onabanjo, has said African countries must prioritise sustainable development practices that promote environmental conservation, social inclusivity, and economic viability. Mr Onabanjo stated this in an interview with journalists on Sunday in Lagos, while speaking on the forthcoming trade and investment conference with the theme “Hope for Africa.” He said these priorities include adopting green technologies, promoting renewable energy sources and implementing sustainable agriculture practices.
The PAAC chairman said that this would lead to economies of scale, increased trade, and improved competitiveness. “There is a growing recognition of the importance of innovation in driving economic growth and development. African countries are expected to prioritise innovation by investing in research and development, fostering a culture of entrepreneurship, and supporting technological advancements. “This can result in the creation of new industries, job opportunities, and the development of innovative solutions to address local challenges,” Mr Onabanjo stated.
US loses ground in Africa to China on AGOA renewal uncertainty (Just Style)
SanMar Corporation’s general counsel and corporate secretary Melissa Nelson told the US Senate Committee on Finance that a “quick renewal” of the African Growth and Opportunity Act (AGOA) will have the largest impact on her business and customers. She explained that so many US jobs in the value chain depend on being able to import duty-free under AGOA, before adding: “SanMar’s apparel production in five AGOA countries provides good jobs for over 9,000 Africans. 70% to 80% of the workers manufacturing products for SanMar are women. These jobs provide stability and drive the socio-economic growth of the region. Entire families are pulled out of poverty and their living standards are increased.”
Nelson clarified that “we are missing an incredible window of opportunity”. “There is so much potential in manufacturing expansion and vertical integration, but companies are hesitant to invest when the benefits of AGOA could expire before a return on investment. Textile plants require hundreds of millions of dollars in investment and can take years to build. Businesses need certainty before taking that next step,” stated Nelson.
28% of global GDP, more than 20% of global exports, investments of $250bn (Realnoe Vremya)
On 7 June, the BRICS states were actively involved in shaping global economic processes, guided by the principles of mutual benefit, partnership and equality. On the second day of the SPIEF, leading experts from Russian and foreign organisations, as well as government agencies, gathered at the conference dedicated to the expansion of the interstate association. New opportunities for business cooperation between the BRICS member countries were on the agenda. The current situation in the large global alliance — in the material of Realnoe Vremya.
BRICS is not only an important political platform, it is the key trade area. According to statistics, the volume of foreign trade with the countries of the association have increased by 28% — and these figures had been even before the accession of the latter countries. Exports have increased by 21%, and imports — by 38.5%. Vladimir Ilyichev, Deputy Minister of Economic Development of Russia, noted that within the framework of Russia’s current BRICS presidency, the country has directed all efforts to consolidate cooperation with its key allies.
According to him, Russia traditionally conducts the practice of simplifying trade processes and fights against those illegal restrictive measures that are presented in the current reality. “Together with our colleagues, we will try to coordinate our position on the practical challenge of some elements of sanctions, climate protectionism, in order to put everything on a formal basis,” said the deputy minister.
United Nations Secretary-General’s SDG Stimulus to Deliver Agenda 2030 (UNCTAD)
The global economy has been facing multiple shocks. The ability of many developing countries to invest in sustainable development and climate action has been sharply curtailed. Only 15% of the Sustainable Developments Goals (SDGs) are on track to be achieved by the 2030 milestone. The SDGs need an urgent booster. The SDG Stimulus is a plan to scale up financing and investment for the SDGs to at least $500 billion per year. This is the plan…
pdf United Nations Secretary General’s SDG Stimulus to Deliver Agenda 2030 (2.17 MB)
Making trade faster, safer and more resilient: Four decades of innovation (UNCTAD)
Developed by UN Trade and Development (UNCTAD), the Automated System for Customs Data, or ASYCUDA, revolutionizes traditional customs processes by replacing outdated paper-based methods with efficient, secure, digital operations. Initially created in response to a request from the Economic Community of West African States (ECOWAS), ASYCUDA was first implemented in Mauritania in the mid-1980s. Over the past four decades, it has helped more than 100 economies – from Iraq to Tajikistan to Tuvalu – speed up the clearance of goods and the pace of trade.
“ASYCUDA has proven that it’s not just about managing customs data – it’s about fostering a resilient, responsive global trading environment,” UN Trade and Development Secretary-General Rebeca Grynspan says. The software is currently active in every region, including 38 least developed countries, 23 landlocked developing countries and 41 small island developing states.
Swift and global banks launch AI pilots to tackle cross-border payments fraud (Swift)
Swift has convened 10 leading financial institutions to test how it can use advanced AI technology to analyse anonymously-shared data from different sources, in a way that will strengthen the global financial ecosystem. AI’s capability for confidential data sharing could be a game-changer for the industry. The tests could lead to the wider use of information sharing in fraud detection, building on its success in assessing cybersecurity threats.
The group, which includes leading banks from around the world including BNY Mellon, Deutsche Bank, DNB, HSBC, Intesa Sanpaolo and Standard Bank, will test the use of secure data collaboration and federated learning technologies. It will leverage a secure infrastructure that will enable financial institutions to exchange relevant information with strong privacy-preserving controls. Swift’s AI anomaly detection model will then be able to gather insights and identify potential fraud patterns from a much richer dataset.
Fraud cost the financial industry USD 485 billion in 2023 alone[1]. AI has a strong role to play in reducing these costs and, at the same time, tackling the issue will significantly help the industry achieve the G20’s goal of increasing the speed of cross-border payments.
Forward together: Navigating the growing challenges of public and external debt (UNCTAD)
As UN Trade and Development (UNCTAD) celebrates its 60th anniversary, it’s crucial to examine issues that will shape the future of trade and development. The “Forward together” series explores pivotal topics that hold big promises and significant challenges for developing countries, such as public debt.
Rising public debt profoundly constrains economic growth and limits investment in sectors critical for development, such as infrastructure, healthcare and education. High public debt also leads to a vicious cycle of borrowing and repayment, risking defaults and economic crises, as seen during the 1980s Latin American debt crisis – a period often referred to as a “lost decade”.
Global public debt has doubled since 2010, reaching an all-time high of $97 trillion in 2023. Currently, about 3.3 billion people – more than 40% of the world’s population – live in countries that spend more on debt interest payments than on education or health. Moreover, in 2023 a historic 54 developing nations, with almost half in Africa, dedicated a minimum of 10% of government funds to debt interest payments.
India on Monday (local time) underscored its commitment to addressing the unique challenges faced by Landlocked Developing Countries (LLDCs) and supporting their sustainable development through the India-UN Development Partnership Fund. India’s Deputy Permanent Representative to the United Nations, Yojna Patel while delivering a statement at the 2nd Session of the Preparatory Committee for the Third UN Conference on Landlocked Developing Countries said on Monday that India is sensitive to the challenges faced by the LLDCs and prioritizes effective cooperation between the LLDCs and transit countries, particularly on transit and trade facilitation.
She said, “Long-term issues such as trade and transit bottlenecks, unsustainable debt and natural resource dependencies have been major challenges for LLDCs. As a transit country, India is sensitive to these challenges faced by the LLDCs and prioritizes effective cooperation between the LLDCs and transit countries, particularly on transit and trade facilitation, which are critical steps towards making transport and commerce efficient and effective, all of which are critical action points identified in the very detailed plan of action that we will adopt during this PREPCOM.”
Landlocked to landlinked: Innovating in cross-border trade (United Nations)
Although it may not be obvious at first glance, Mongolia, Paraguay, Switzerland, and Zambia share more than the colour red in their flags: They have all dealt with – or are still dealing with – red tape and trade bottlenecks as landlocked countries. Bordered by countries on all sides with no direct access to an ocean or sea, landlocked countries deal with unique challenges to trade, especially when it comes to transport and logistics. With these challenges, however, come opportunities to innovate.
The logistics performance of landlocked developing countries on average last year was 17% lower than the global average, according to the World Bank. Beyond limited physical infrastructure – such as roads and railways – other reasons for this lower performance include disjointed national reforms along trade routes, lack of tech-enabled border procedures and lack of coordination along trade corridors, to name a few.
As countries, border agencies and international organizations strengthen collaboration to make cross-border trade faster, easier and less costly – especially for small businesses – landlocked-ness can be turned into landlinked-ness, setting countries on a path towards sustainable and inclusive development.
Rewarding farmers for regenerative agriculture is ‘critical for decarbonising the food sector’ (Reuters)
The food sector is one of the biggest contributors to the climate and nature crises. The way we grow, distribute, consume and dispose of food is responsible for one third of total greenhouse gas emissions annually. Food systems are the biggest contributor to galloping biodiversity loss, and account for 70% of freshwater withdrawals. With half of food system emissions down to agricultural production and land-use change in corporate value chains, food brands have an outsized role in food system transformation.
Institutional investors such as Federated Hermes are pushing companies in the land and agriculture sector to adopt more regenerative agricultural practices as part of their net zero commitments, guided by the Science Based Targets initiative, which last year issued its guidance for companies in the sector.
While lacking in scientific definition, regenerative agriculture is an approach that reduces the use of water and chemicals, prevents land degradation and deforestation, and restores and enhances soil, water, biodiversity and carbon on and around farms. It includes practices such as low or no tillage, use of precision fertilisers, control of soil erosion, planting trees on farms and use of biochar fertilisers.
According to Future Fit Food and Agriculture, a recent report from the World Business Council for Sustainable Development, the Food and Land Use Coalition (FOLU) and We Mean Business (WMB), such practices could halve the global food system’s greenhouse gas (GHG) emissions by 2030 and reduce negative impacts of farming on plants, wildlife and freshwater.
National climate action plans have insufficient forest targets and deforestation continues to rise (UN Environment)
Despite global commitments to halt deforestation by 2030, only eight of the top 20 countries with highest rate of tropical deforestation have quantified targets on forests in their national climate action plans, also known as Nationally Determined Contributions (NDCs). This is one of the key findings of the UN-REDD report “Raising ambition, accelerating action: Towards enhanced Nationally Determined Contributions for forests,” published today as countries gather for the Bonn Climate Change Conference.
The report reveals a major gap in forest protection, management and restoration in current NDCs, which outline plans to adapt to and mitigate climate change. Analyzed by climate experts at UNEP, the report shows that current NDC pledges submitted between 2017–2023 do not meet the global ambition to halt and reverse deforestation by 2030. Forests play a key role in achieving the Paris Agreement on climate change, as they have the potential to contribute one-third of the emissions reductions required to close the 2030 mitigation gap.
FAO Report: Global fisheries and aquaculture production reaches a new record high (FAO)
World fisheries and aquaculture production has hit a new high, with aquaculture production of aquatic animals surpassing capture fisheries for the first time, according to a new report from the Food and Agriculture Organization of the United Nations (FAO) released today.
The 2024 edition of The State of World Fisheries and Aquaculture (SOFIA) said global fisheries and aquaculture production in 2022 surged to 223.2 million tonnes, a 4.4 percent increase from the year 2020. Production comprised 185.4 million tonnes of aquatic animals and 37.8 million tonnes of algae.
Record production of aquatic foods underlines the sector’s potential in tackling food insecurity and malnutrition. Global apparent consumption of aquatic animal foods reached 162.5 million tonnes in 2021. This figure has increased at nearly twice the rate of the world population since 1961, with global per capita annual consumption rising from 9.1 kg in 1961 to 20.7 kg in 2022.
DP World Unveils Ocean Strategy 2024-2030: A Blueprint for Sustainable Maritime Leadership (CSRWire)
World Ocean Day, recognized each year on June 8, serves as a poignant reminder of the substantial environmental and climatic challenges that our planet currently faces. The alarming degradation of marine ecosystems—where 50% of the world’s coral reefs and 67% of mangroves have been lost, and 85% of fish stocks are under threat—highlights the urgent need for comprehensive strategies to sustainably manage and restore our oceans. Moreover, the looming threat of rising sea levels, which could affect over 200 million people by 2100, underscores the critical need for action.
The need for immediate action is clear; World Ocean Day is using 2024 to kick off its new multi-year action theme: Catalyzing Action for Our Ocean & Climate. In response, DP World has launched its Ocean Strategy for 2024-2030, an initiative that redefines the nexus between global trade and environmental stewardship, underpinning its leadership in the emerging Sustainable Blue Economy.
A healthy ocean with restored biodiversity underpins a stable climate, sustainable communities, and long-term economic growth. DP World’s Ocean Strategy 2024-2030 is a profound testament to the pivotal role the ocean plays in global trade and environmental sustainability. The ocean carries 90% of the world’s traded goods through marine transportation, placing it at the very heart of DP World’s operations. The ocean sustains the livelihoods of 3 billion people, contributing 2.5% of global GDP.
World Oceans Day event highlights immediate protection measures needed (UN News)
A powerful video was shown echoing the theme, awaken new depths, warning of immediate protection needs and cautioning that there is no time for an “out of sight out of mind” sense of complacency. In a statement marking the Day – which falls officially on Saturday – UN Secretary-General António Guterres said the ocean sustains life on Earth and the problems are essentially man-made.
“Climate change is triggering rising seas and threatening the very existence of small island developing states and coastal populations”, he said.
Quick links
Global Trade War: Challenges of A New Reality for Africa (Liberian Observer)
Seven trade policy priorities for the next government (Bond)
DG Okonjo-Iweala meets Azerbaijani President, welcomes Trade and Investment Day at COP29 (WTO)
World Environment Day turns global gaze towards land restoration (UNEP)
The International Cocoa Agreement: Enhancing cooperation and dialogue along global value chains (UNCTAD)
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Development within South Africa’s digital economy underscored as a solution to economic growth (Brand South Africa)
As a preferred investment destination on the continent, South Africa’s quest to build a formidable and developed nation is not without bounds. Chief among some of the challenges is economic development that’ll bring about a remedy for the country’s incremental unemployment rate within this evolving digital era. It is without any shadow of a doubt that the multiple sectors that make up our economy exhibit prospects of exponential growth. The one thing that they all have in common is that they all have some level of dependency on the Information and Communication Technology and Digital sector, and as these sectors continue to progress, they warrant a rise in the development of the Digital sector.
DR Congo seeks to curb dollar dominance by fronting use of local currency (Africanews)
The Central Bank of Congo (BCC) has mandated that all Electronic Payment Terminals (EPTs) in the Democratic Republic of Congo (DRC) only accept Congolese francs. This move aims to boost the use of the national currency and reduce reliance on the US dollar, which weakens the franc. According to the BCC, this measure aims to strengthen the use of the national currency and encourage the population to prefer it for everyday transactions of goods and services. This initiative is part of a series of major reforms launched by Nicolas Kazadi, the former Minister of Finance, aimed at combating the dollarization of the economy and promoting financial inclusion.
Zambia’s slow debt restructuring a lesson for other nations (BusinessLIVE)
More than three-and-a-half years, or 1,300 days, after resource-rich Zambia formally declared itself bankrupt it is about to drag itself out of default, leaving some hard lessons for richer nations about how their much-vaunted debt relief plan performed. Tuesday will see its international bondholders vote through their part of a $13.4bn debt restructuring and make Zambia the first to complete a full-blown rework under the Group of 20 (G20)-led “Common Framework” architecture. President Hakainde Hichilema has described it as a historic moment and the head of the IMF, Kristalina Georgieva, has hailed it as an important sign of multilateral co-operation.
“It was painful for Zambia — we fully recognise that,” William Roos, the co-chair of both the “Paris Club” of richer Western creditor nations and of Zambia’s official creditor committee that included Zambia’s biggest lender China, said at a Finance for Development Lab debt conference in Paris on Friday. “So we have to improve. But we delivered.” The overall restructuring is estimated to cut about $900m from Zambia’s debt and spread its future payments over a much longer time frame. It has been its role as a Common Framework guinea pig, though, that has made it prominent.
Launched during Covid-19 in 2020, the framework was designed to bring all the different lenders to poorer countries under one roof — particularly China whose lending exploded in the decade before the pandemic. It was regarded as a breakthrough but the extraordinary length of time Zambia’s restructuring has taken, as well as others still ongoing in Ghana and Ethiopia, has led to criticism of delays and complexity.
Kenya launches population framework for sustainable growth (Xinhua)
Kenya on Thursday launched a framework that would guide the implementation of population programs for the country’s sustainable development. Njuguna Ndung’u, cabinet secretary for National Treasury and Economic Planning, said during the launch in Nairobi, the capital of Kenya, that the policy would provide the East African nation with a responsive and harmonized direction to address population growth in relation to economic growth.
“Population growth must be in tandem with available resources and development goals. Rapid population growth is problematic for any country; if the population grows faster than the economy, challenges like increased dependency emerge,” he said.
He observed that the framework, titled “Kenya National Population Policy for Sustainable Development,” would guide the country to tackle population growth in line with its economic blueprint Vision 2030, Africa’s Agenda 2063 and the UN Sustainable Development Goals. “Kenya’s population growth between 1999 and 2009 was about 3 percent per year; this fell to 2 percent between 2009 and 2019. This means Kenya is on the right path because the growth of population should never be higher than the growth of the real economy,” he added.
No agreement on proposed merging of Central African economic groups (Voice of America)
Presidents and finance ministers from eleven central African countries have failed to agree on merging three economic blocs. Analysts say breaking down economic barriers among member countries of the Central African Economic and Monetary Community, CEMAC, the Economic Community of Central African States, ECCAS, and the Economic Community of the Great Lakes Countries, CEPGL, will boost trade and growth in a region that is said to be among the poorest and most conflict-ridden in the world. But after a meeting in Cameroon’s capital, officials say combining the three economic blocs will take longer than the leaders of the regions expect.
Gilberto Da Piedade Verissimo, president of ECCAS, says the process of merging the economic blocs is taking longer than planned because of a lack of political will, conflicting interests and bureaucratic duplication among 3 rival economic groups. He says each time there is a leadership change, ECCAS officials start explaining the importance of fusing the economic blocs for the general interest of the eleven central African states to new governments all over again because different leaders have different understandings of the combination.
Africa’s e-commerce platforms and rising digital marketplace (DW)
Africans are gradually embracing the convenience of online shopping. However, this trend is still in its early stages in Africa compared to more established markets such as Asia, Europe and the United States. Projections by the McKinsey Global Institute suggest that by 2025, e-commerce could account for 10% of all retail sales in Africa’s largest economies: Nigeria, South Africa and Egypt.
According to experts, while the e-commerce sector holds significant potential in Africa, it faces challenges related to cultural and logistical factors. These considerations are crucial when customizing products and services to align with local preferences.
Africa’s largest online marketplace is Jumia, an e-commerce company that attracts 23 million visits per month. It is followed by online shopping platform Takealot.com, which has 10 million monthly visits, 96% of which are from South Africa, the country in which its based.
Digital Future for Africa: African Development Bank and Intel to Train Millions in AI (AfDB)
The African Development Bank and technology giant Intel have formalized their cooperation to transform the African digital ecosystem. The partnership aims to equip 3 million Africans and 30,000 government officials with AI skills.
Sealed at the recent African Development Bank’s Annual Meetings in Nairobi, Kenya, the deal will help create a critical mass of Africans proficient in Fourth Industrial Revolution (4IR) skills to accelerate growth and productivity and position Africans as contributors, not just consumers of 4IR. The training will address socio-economic challenges and boost productivity in key growth sectors such as agriculture, health, and education, thereby disrupting traditional growth cycles.
Revolutionizing global trade through TradeTech (WEF)
Technology is playing a pivotal role in reducing trade friction. During COVID-19, technological advances – such as e-commerce, digital payments, cloud computing, the Internet of Things (IoT) and 5G – significantly disrupted international commerce. Artificial intelligence (AI) is already being integrated into various trade-related processes, while robotics, virtual reality and 3D printing are expected to become more integral to trade in the medium term.
Recognizing the potential of these technologies to enhance the efficiency and inclusivity of international trade, the World Economic Forum, with the Ministry of Economy of the United Arab Emirates (UAE) and the Abu Dhabi Department of Economic Development, launched the TradeTech Initiative on the sidelines of the World Trade Organization’s ministerial conference MC13 in February. By bringing leading stakeholders together, the TradeTech initiative encourages trade facilitation by improving transparency, fostering inter-agency cooperation and enabling data sharing for more effective risk management.
Global Leaders Forum to chart a new development course in a changing world (UNCTAD)
Commemorating 60 years of impact, UN Trade and Development (UNCTAD) convenes world leaders to shape a vision for inclusive prosperity in a complex global landscape. The 60th anniversary comes at a time of cascading crisis, with disruptions of global trade, soaring debt, and climate change severely impacting developing countries. It represents “an opportunity to reflect on the lessons learned over the past six decades and forge a new path forward, with a shared vision for the future,” UN Trade and Development Secretary-General Rebeca Grynspan said. Exploring new strategies for development, the Global Leaders Forum will focus on integrated treatment of trade and development, and the interrelated issues of finance, technology, investment and sustainable development.
The forum aims to inspire fresh perspectives on development thinking to address the complexities of “polyglobalization”, characterized by growing economic diversity and decentralization, amidst the rising interdependence of countries on a global scale. Discussions will prioritize the needs of developing nations, with a particular emphasis on least developed countries, small island developing states and landlocked developing countries.
Development and Application of AI for Food Processing and Safety Regulations (Food Safety)
A number of research articles have been published that showcase real-world case studies of how machine learning is employed for the rapid detection of pathogens, preventing contamination incidents, or how the synergy between AI and blockchain technologies functions for enhancing traceability and transparency throughout the food supply chain. These studies provide great examples showing that the integration of these AI technologies ensures their accountability in assisting users to make quick and correct responses to both management and technical food safety issues.
From these successful AI application case studies, it can also be surmised that the successful application of AI technologies to FSIS work will depend on the successful development and deployment of specific AI application approaches and methods that meet the needs of specific operation procedures and steps, types of products, inspection requirements, monitoring and control systems, and management purposes. Keeping in mind that the purposes of AI application to food safety and inspection are to solve the most challenging and complex food safety and quality problems across various domains, it is essential to correctly determine what AI application approaches and methods should be chosen.
Value chains need rewiring. Are manufacturers up to the task? (New SCMR)
Constant disruptions, geopolitical challenges, climate change and emerging technologies have driven manufacturing companies to rethink their value chains. However, despite the strategic intent to do so, the operational delivery of these projects is slow, creating a gap due to the complexity of the challenges.
That is from the executive summary of a new whitepaper produced by the World Economic Forum in collaboration with Kearney. Written by Per Hong, senior partner, strategic operations at Kearney, and Kiva Allgood, head, centre for advanced manufacturing and supply chains at the World Economic Forum, the whitepaper cites the above-mentioned challenges as underscoring “the extent to which a response based on incremental change will fall short of what is needed to remain competitive in the coming years.”
“To continue bridging the gap between intent and operational delivery, manufacturers must stay abreast of the dynamics that shape value chain configuration and be proactive in pursuing wholesale approaches to rewiring,” the report, “From Disruption to Opportunity: Strategies for Rewiring Global Value Chains,” goes on to note, “a holistic approach of this kind imbues value chains with the strength and flexibility required to navigate future market turbulence and manage the tradeoffs between cost, performance, resilience and sustainability.”
Why businesses are moving from sustainability to regeneration (WEF)
Sustainable brands strive to just do less harm to the planet. Regenerative businesses go beyond sustainability and vie to do more good to society and the planet. Specifically, regenerative firms seek to boost the health and vitality of people, places and the planet simultaneously in a synergistic manner. In doing so, there is a growing body of evidence to suggest that regenerative businesses can achieve far better financial performance and impact than their sustainability-focused peers.
To get buy-in from internal and external stakeholders, businesses should explain how their triple regeneration strategy – the synergistic revitalization of people, places and the planet – could yield great economic and social value for all stakeholders. Promising place-based economic development initiatives — showcased in the upcoming book The Frugal Economy — exist in disadvantaged communities across the US that use a holistic approach to regenerate people, places and the biodiversity altogether. By joining these initiatives, businesses can accelerate their own transition to a regenerative model.
UN urges regional cooperation to accelerate digitalization of cross-border trade procedures (UN ESCAP)
The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) recently hosted the first Paperless Trade Week to foster deeper cooperation among public and private sector stakeholders from the region to implement cross-border trade digitalization.
The Week concluded with the third sessions of both the Standing Committee and Paperless Trade Council of the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific (CPTA), bringing together over 30 member States and 10 international development partners to engage in enriching discussions and share their learnings on pertinent issues and solutions for digitalizing international trade processes. This engagement served to inform the potential actions and decisions taken during the week’s intergovernmental sessions.
The latest United Nations Global Survey on Digital and Sustainable Trade Facilitation underscored that cross-border paperless trade measures remain among the least implemented initiatives on the global and regional levels. The persistence of this challenge may be attributed to the inability to unilaterally implement such measures effectively.
Unlocking solutions: Takeaways from the Global Inclusive Growth Summit (Devex)
The 2024 Global Inclusive Growth Summit, hosted by the Mastercard Center for Inclusive Growth and media partner Devex, brought together diverse voices — from small business owners to philanthropists to policymakers — to find practical solutions to global challenges. In the center’s 10th year of driving impact, the April event in Washington, D.C., tackled complex topics, including the role of multilateral development banks in an evolving development landscape, strategies for responsible artificial intelligence, or AI, and ways to ensure inclusive digital ecosystems.
For a decade, the Mastercard Center for Inclusive Growth has worked to bring together philanthropic and corporate assets to catalyze social impact, said Payal Dalal, the center’s first executive vice president for global programs. “We’ve proven that if you layer on aggregated anonymized data, human capital and expertise, and with our network of clients and stakeholders, impact happens faster,” said Dalal. “That’s one of the legacies of the center in its first 10 years.”
Urgency of WTO work on fisheries subsidies spotlighted on eve of World Oceans Day (WTO)
Looking ahead to World Oceans Day on 8 June, Director-General Ngozi Okonjo-Iweala and the chair of the fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, emphasized the need to conclude two tracks of ongoing work at the WTO for ocean sustainability: entry into force of the Agreement on Fisheries Subsidies and the completion of a second wave of negotiations to strengthen the Agreement. DG Okonjo-Iweala said in a video message: “In 2022, the WTO’s 164 member governments reached a new global agreement on curbing harmful fishing subsidies. Over 75 members have ratified this agreement, and around 30 more are still needed for its entry into force. We need to accelerate the implementation of this landmark global agreement for ocean sustainability and the blue economy.”
WTO upgrades platform on trade opportunities in government procurement (WTO)
The WTO has upgraded its online platform on trade and government procurement (e-GPA Gateway), providing more user-friendly access to information relevant to parties involved in the Agreement on Government Procurement 2012 (GPA 2012). The revamped e-GPA Gateway provides enhanced access to information on the commitments and procurement systems of WTO members that are parties to the GPA 2012. The market access opportunities available under the GPA 2012 are estimated to be worth more than USD 1.7 trillion annually.
Head of BRICS New Development Bank urges to focus on ‘multipolar economy’ to form multipolar world (Anadolu Ajansı)
The head of the economic bloc BRICS New Development Bank, former Brazilian President Dilma Rousseff on Thursday urged to focus on the formation of a multipolar economy. Speaking at a meeting with Russian President Vladimir Putin in St. Petersburg, Rousseff said the “Global North” failed to address humanity’s global problems, asserting that a multipolar economy is better equipped to withstand global shocks and crises.
“We are a different bank, created by the countries of the Global South for the countries of the Global South. We cannot dictate conditions for our members,” Rousseff said. She emphasized that a multipolar economy is essential for achieving true multipolarity, and contributing to its establishment is one of the BRICS New Development Bank’s goals.
BRICS contribution to global growth, governance lauded at int’l forum in Russia (Xinhua)
The head of the economic bloc BRICS New Development Bank, former Brazilian President Dilma Rousseff on Thursday urged to focus on the formation of a multipolar economy. Speaking at a meeting with Russian President Vladimir Putin in St. Petersburg, Rousseff said the “Global North” failed to address humanity’s global problems, asserting that a multipolar economy is better equipped to withstand global shocks and crises. Rousseff highlighted the importance of national currencies in a multipolar world, noting that another of the bank’s commitments is to facilitate settlements in national currencies. “This is crucial for developing countries that lack strong currencies and suffer from exchange rate volatility,” she said.
BRICS members need to strengthen transport connectivity to grow trade says Vijay Kalantri (Deccan Herald)
Iran and other BRICS member countries need to collaborate in order to strengthen logistics and transport connectivity to reduce cost and time consumed in cross-border trade, said Dr Vijay Kalantri, Chairman, Russia India Trade House Mumbai (RITHM). “India, Iran and Russia may collaborate to strengthen multi-modal transport connectivity along the International North South Transport Corridor (INSTC).
“This corridor passes through Iran and Central Asia and it is 30% cheaper and 40% shorter than the Suez Canal route. Particularly, we need to expedite construction of the 164-km railway line between Rasht and Astara via Anzali. Also, the member countries need to collaborate to complete the 628-km-long railway line to connect Chabahar Port with the Iranian railway system (Zahedan railway line).
“These projects will strengthen the International North-South Transport Corridor (INSTC) and reduce logistics time and freight cost for trading among India, Iran and Central Asian countries,” said Dr Kalantri, who is President, All India Association of Industries (AIAI) and Chairman, MVIRDC World Trade Centre Mumbai Director—World Trade Centre Association New York. Speaking at the St Petersburg International Economic Forum 2024 (SPIEF’24), he proposed various measures to foster strong business ties between India, Russia and other BRICS countries.
Quick links
Digital Health: access to technologies under discussion at G20 (G20 Brasil 2024)
Who’s better off and who’s worse off four years on from the outbreak of COVID? The financial picture might surprise you (The Conversation)
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Namibia’s audacious plan to become a global green hydrogen hub (Engineering News)
From modest beginnings, Namibia is banking on a whole new supply chain taking shape — from the production of hydrogen that’s turned into ammonia for transportation, to associated “green” products — that would place it at the forefront of a developing clean technology, and finally put it on the map. Europe, for its part, sees a means of furthering its green transition and bolstering energy security after it lost natural gas from Russia. The European Investment Bank has pledged a €500-million ($544-million) loan toward developing green hydrogen in Namibia, with the Netherlands’ Invest International contributing to a planned $1 billion Namibian hydrogen fund.
If Namibia’s green hydrogen gambit does pay off, it could foster decades of development. And Namibia needs development wherever it can get it, according to Trevino Forbes, the mayor of Walvis Bay. The goal has to be “to capitalize on this resource of ours,” he said.
While Zambia’s economy is still recovering from the COVID-19 pandemic and a previous recession, a new Country Economic Monitor (CEM) report shows pathways that can support the country’s productivity to enhance economic transformation, create better jobs, and deliver sustained and inclusive growth.
The new CEM, launched today, titled Unlocking Productivity and Economic Transformation for Better Jobs, shows that structural issues persist in the Zambian economy despite remarkable economic growth in the 2000s decade, as growth has not been inclusive enough to significantly reduce poverty and create enough good jobs. The Zambia CEM provides a deeper analysis of the country’s economic landscape. It dissects Zambia’s growth performance and the limitations of its growth model. During the 2010s decade, the economy was not resilient enough, and thus COVID-19 hit an economy that was already struggling, triggering a recession and leading to the external debt default in 2020.
Afreximbank commences the project development activities for an African Quality Assurance Center (AQAC), in Imo State Nigeria (Afreximbank)
African Export-Import Bank (Afreximbank) has announced the commencement of project development activities of its second African Quality Assurance Center (AQAC) in Ngor Okpala, Imo State, Nigeria, in collaboration with Bureau Veritas. Project development activities were launched at an event held on 3rd June 2024 in Imo State and attended by His Excellency Senator Hope Odidika Uzodinma, Governor of Imo State, where the Bank showcased a prototype design for the project and introduced Bureau Veritas, a world leader in Testing, Inspection and Certification, as the technical partner to support the operations and management of the facility.
Speaking at the event in Imo State, Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development Bank, Afreximbank said: “The commencement of project development activities of the AQAC in Imo State marks a significant step forward in Afreximbank’s mission to enhance Nigeria and the continent’s export potential. By ensuring that “Made in Africa” goods and products meet international standards and technical regulations at export markets, we are not only boosting trade but also fostering economic growth across the continent in line with the Bank’s mandate.”
At a session organised on Thursday, 30 May 2024 by the African Development Bank (AfDB) Group as part of its 2024 Annual Meetings in Nairobi, debates focused on rethinking how clean energy projects are financed in Africa. Wale Shonibare pointed out that for Africa to meet its energy and climate targets by 2030, annual investments of $200 billion are needed whereas investments in 2022 were less than $90 billion.
“African countries need to increase their national savings and pool their natural resources so that they can use these resources to raise the funds they need for investment in energy infrastructure. That calls for a paradigm shift in project financing in Africa," he said.
Achieving the paradigm shift depends on three key factors. First, access to long-term sustainable financing that mitigates currency risk and keeps electricity tariffs affordable in a context where 600 million Africans still lack access to electricity. Second, African counties must pool and harness their wealth to attract international investors to projects that earn local currency without the need for government guarantees. Third, the continent must make best use of its rare mineral wealth. Many of these minerals are essential for clean energy technologies and should create new export markets.
Dr Adesina tells the Invest Africa Debate: “We’re Taking Africa to the World” (AfDB)
The 10th Invest Africa Debate has opened in the City of London’s prestigious Guildhall. Adesina addressed more than 200 African investors with a rousing appeal on trade and investment into Africa: “Infrastructure is essential for trade. The Bank has invested $50 billion into Africa in the last eight years. That’s the largest of any institution. There’s now no project that the Bank can’t finance and that’s a different Africa. We’re taking Africa in the world and bringing the world to Africa.”
He added it was important to debunk certain myths and stereotypes. “Africa is not any riskier than any other part of the world. It’s important to give people the confidence to invest. That’s why the Bank supports investors.”
Former emerging world finance chiefs call for debt reworks to enable climate spending (Reuters)
A group of prominent former emerging market finance chiefs is pressing global leaders to incorporate external shocks and climate change into debt sustainability calculations, according to a letter published on Wednesday. The 21 signatories, including Nigeria’s Lamido Sanusi, Colombia’s Jose Antonio Ocampo, Pakistan’s Reza Baqir, Argentina’s Martin Guzman and South Africa’s Tito Mboweni, also called for debt relief to enable struggling emerging economies to meet climate investment targets.
The World Bank has warned that high borrowing costs and slowing growth have sparked a “silent debt crisis“ that has thrown climate, health and education spending goals into question across the developing world.
Zambia this week became the first poor nation to emerge from debt default under a rubric designed by the G20 dubbed the Common Framework. But some have said the debt relief – estimated to have reduced Zambia’s debt by some $900 million and spread future payments over a much longer time frame – was insufficient.
New report provides a ranking of sustainability around the world (Phys.org)
As the world continues to face new challenges connected to climate change, how do we tally national and global efforts toward achieving sustainability goals and addressing intensifying environmental concerns? For the last 25 years, the Center for International Earth Science Information Network (CIESIN) has collaborated with the Yale Center for Environmental Law and Policy on the Environmental Performance Index (EPI) — essentially, an evidence-based and multi-faceted sustainability scorecard. While there has some been progress toward sustainability in recent years, the 2024 EPI highlights many areas for improvement.
This index offers a summary of sustainability around the world by ranking 180 countries based on climate change mitigation, ecosystem vitality and environmental health. The EPI uses 58 different performance indicators within 11 categories to score each country, track trends and identify successful policy interventions. The EPI scores are a way to spotlight not only how countries have fared in their efforts to address a wide range of environmental challenges, but also how they compare with one another. They evaluate nations on adherence to the U.N. Sustainable Development Goals, the 2015 Paris Climate Change Agreement and the Kunming-Montreal Global Biodiversity Framework.
Critical minerals: Africa holds key to sustainable energy future (UNCTAD)
Africa’s vast deposits of minerals critical to the global energy transition, such as cobalt, copper and lithium, can power a sustainable energy future, UN Trade and Development Secretary-General, Rebeca Grynspan, said. She spoke during an event held in Addis Ababa, Ethiopia, and online on 4 June as part of the organization’s 60th anniversary celebrations.
The event themed “Maximizing Africa’s potential: Leveraging demand for critical minerals to boost inclusive growth and sustainable development” explored ways to optimize the development benefits of these minerals. “Cobalt, manganese, graphite, lithium are not just elements on the periodic table,” Ms. Grynspan said. “They can be the building blocks of a new era – powering our homes, driving our vehicles, and connecting our world. Catalyzing a green revolution that can lift millions out of poverty and create a fairer world.”
The UN Economic Commission for Africa’s deputy executive secretary, Antonio Pedro, said adding value to critical minerals in Africa could make the continent a competitive hub for green industrialization. “Imagine the potential if African minerals are processed into African batteries, installed into African cars that are driven across the continent and the world,” he said. “This would accelerate the deployment of renewable energy and the electrification of transport systems on the continent, create decent jobs and make Africa a competitive hub for green industrialization,” Mr. Pedro added.
See also: The unintended consequences of investment policy on critical minerals investment (World Bank Blog)
Extreme events pose risk to global economy (G20 Brasil 2024)
Extreme weather events are becoming an increasingly significant threat to the global economy. Data from the World Economic Forum’s (WEF) Global Risks Report 2024 show that the effects of climate change are one of the most pressing concerns for the next two years and could worsen over the decade, causing severe economic losses and affecting the growth of countries. The risks are particularly high for developing ones, more vulnerable to climate disasters. The study also reveals that frequent storms, floods, and droughts can destroy infrastructure, impact financial stability, and disrupt supply chains by raising agricultural production costs and intensifying global inequality. The way forward is a concerted worldwide effort to mitigate these risks.
According to Cristina Reis, Undersecretary for Sustainable Economic Development at the Brazilian Ministry of Finance’s Secretariat for Economic Policy, the global effort to face this scenario entails “preparing countries to avoid these climate risks, promoting economic development paths that are environmentally sustainable and socially just”.
WTO report notes increasingly positive impact of technical assistance activities (WTO)
The WTO’s Annual Report on Technical Assistance, released on 6 June, reveals a strong rebound in technical assistance and capacity-building activities in 2023 following three years of disruption due to the COVID-19 pandemic. Digital technologies are increasingly being integrated into these activities while teaching methods are regularly adapted to enhance the effectiveness of the activities in improving the trade know-how of government officials from developing economies.
“More than just a year of recovery, 2023 witnessed the first visible signs of sustainable transformation in the delivery of technical assistance activities”, WTO Deputy Director-General Xiangchen Zhang said in the foreword. “The constraints of the last few years and their associated effects have pushed us in a forced march towards reinventing our practices and curriculum. Donors should be congratulated for their generous contributions throughout these difficult times.”
UN Trade and Development (UNCTAD) releases annual report 2023 (UNCTAD)
Themed “Trade: Unlocking sustainable strategies for people, planet and prosperity”, the report outlines how UNCTAD adapted to deliver for its 195 member states amid the evolving global challenges of 2023.While some economies navigated a soft landing, many developing countries continued to suffer disproportionately from weak growth of trade and investment, growing debt burdens, supply chain disruptions, and the ongoing climate crisis. Led by Secretary-General Rebeca Grynspan, UN Trade and Development redoubled its efforts to advocate for developing economies on the world stage, while continuing to advance its three pillars of work in the fields of research and analysis, consensus building, and technical cooperation.
UN Report Calls for Holistic, Adaptable Policy Approaches to Achieve SDGs (SDG Knowledge Hub)
The UN has issued the UN Secretary-General’s report exploring the long-term impacts of current trends on the realization of the SDGs. The report calls for tangible and holistic responses at all levels that prioritize policies aimed at revitalizing inclusive, sustained, and sustainable economic growth while reversing geoeconomic fragmentation. The report underscores that the multiple and interlinked challenges facing the world today affect countries’ capacity to accelerate the achievement of the SDGs, as pledged by world leaders in the political declaration of the 2023 SDG Summit.
The report concludes that in order to eradicate poverty and achieve the SDGs, policy approaches aimed at revitalizing sustainable economic growth and reversing geoeconomic fragmentation “need to be adaptable to rapidly changing labor markets” and their increased digitalization. Such approaches would also “need to include measures aimed at promoting skills training while addressing unfavorable labor outcomes.”
Ken Ashigbey: Integrating Mobile Money systems essential for African business dev’t (Citinewsroom)
The Chief Executive Officer of the Ghana Chamber of Telecommunications, Dr. Ing. Kenneth Ashigbey, has expressed concern over the challenges in financial transactions on the continent. Speaking at a press briefing to announce the upcoming Interoperability Conference Symposium in Accra, he indicated that mobile interoperability would foster business growth across the continent and expand financial inclusion if properly implemented.
Meanwhile, the chairman of the Africa Prosperity Network, Gabby Asare Otchere-Darko, urged political and industry leaders to support this initiative to boost intra-African trade. “We are told that the technology is there. We are told that the resources are there, but it needs political will… [W]e believe that if we can get interoperability working, particularly in the areas where tens and millions of medium, small, and microscale enterprises on the continent operate, it will make meaningful, the whole idea of intra-African trade.”
Quick links
AfCFTA: Is skills availability a barrier to success? (IT Web)
AfCFTA; can Africa do it alone? (The Business & Financial Times)
Senators rally support for Africa trade deal amid competition with China (The Hill)
BRICS: Europe puts an end to its dependence on Russian gas (Cointribune)
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Despite a 0.1% fall in GDP data in first quarter, the agriculture sector grew by 13.5% (IOL)
Despite a 0.1% fall in South Africa’s GDP data for the first quarter of this year, the agriculture sector grew by 13.5%. Thabile Nkunjana, a senior economist at the Trade Research Unit of the National Agricultural Marketing Council (Namc) said this was remarkable given the sector’s numerous fundamental constraints, including infrastructure to a greater extent. “However, the efforts of key government that collaborated with companies to address these difficulties have been partially neutralised, and more work is needed in the future,” Nkunjana said.
He added that the agricultural sector’s expansion was principally driven by increased economic activity for horticultural items. “In the first quarter, South Africa’s total agricultural exports were R57.8 billion ($3.1 billion). Grapes were the main export product, valued at R12.1 billion in the quarter, followed by apples (R2.1 billion), pears (R1.9 billion), wine (R1.8 billion), and plums and sloes (R1.4 billion). Maize products, such as maize meal, increased by 13% quarter on quarter to R1.2 billion, which is significantly more than R467.3 million for the same time last year.”
SA fingered as a major transit hub for illegal gold exports with a tally of R657bn (IOL)
Swissaid has shone the spotlight on South Africa for its role as a major transit hub for illegal bullion exports from the region with over $35 billion (R657bn) worth of gold smuggled out of Africa. Switzerland-based Swissaid runs development policy projects and raw materials is a focus area.
In a report entitled “On The Trail of African Gold” and released on Friday, the Bern-based non-governmental organisation said that between 321 and 475 tons of gold from the informal sector was smuggled out of Africa each year. This translates to a value of between $24bn (R451bn) and $35bn (R658bn), with gold smuggling from Africa to countries such as the United Arab Emirates (UAE) said to be rising.
In 2023, SA produced 110 tons of gold while the neighbouring Zimbabwe produced 37 tons, although most of it was informal and was smuggled out illegally, according to an investigation by Al Jazeera.
South Africa’s financial system stable despite headwinds, central bank says (CNBC Africa)
South Africa’s central bank said on Wednesday it expected the country’s financial system to remain resilient despite risks from worldwide elections, persistent geo-political tensions and weak domestic market conditions.
With more than 70 countries going to the polls this year – among them South Africa last month – the South African Reserve Bank said the possible changes in policy that might result had heightened market volatility.
The central bank said in the first edition of its Financial Stability Review, the biannual health check of the financial system, that high exposure to government debt and the weak fiscal position overall, undermined market resilience.
New SA Canegrowers chair calls on govt to fulfil its promise of a sugar tax review (Engineering News)
With major sugar mills remaining in business rescue and a possible increase in the Health Promotion Levy (HPL), or sugar tax, still looming, the sustainability of the sugar industry remains under threat, industry body SA Canegrowers has said. It noted that the sugar tax had suppressed the market for locally produced sugar and cost the industry more than 16 000 jobs since its implementation in 2018.
Newly elected chairperson Higgins Mdluli said at an AGM that the promise to review the HPL under Phase 1 of the Sugarcane Value Chain Masterplan had not been kept and that no meaningful engagement on the matter had taken place. He implored the South African government to support the sugar industry to safeguard the small canegrowers and jobs it sustained. He also called for the scrapping of the HPL in its entirety.
Plans to include blueberry in China trade protocol advanced (The Herald)
The country is mulling including blueberry among citrus fruits in the Zimbabwe/China citrus trade protocol, in a development that will add impetus to the national push to attain a US$1 billion horticulture industry by 2030. This was said by the local horticulture promotion body, Horticultural Development Council (HDC) in a recent X (formerly Twitter) post in which it hinted that growing agricultural exports needed the country to broaden its search for new markets.
“Work is underway to secure the protocol we need to access markets such as China and India for Zimbabwean blueberries. We are ready to collaborate with stakeholders to make this happen,” said the post.
The HDC quarterly seasonal update for June 2023 said progress towards new blueberry production had been slower than expected due to the economic constraints, as well as the increase in the cost of production and decrease in returns per kilogramme. “Under market access, the facilitation of China protocol for blueberries was of critical strategic importance for Zimbabwe, as our competitors in the region (including South Africa) do not have protocol as yet. An opportunity for us to gain market share prior to our competitors would be a huge win for the industry,” said the June report.
Zim entrepreneur launches Intra-Africa Trade easy digital platform (The Chronicle)
Zimbabwean entrepreneur and business influencer, Mr Chad Chawanda, has introduced an online platform that promotes ease of doing trade while promoting regional integration under the Africa Continental Free Trade Area (AFCFTA) agreement.
The digital platform called ‘Insights on Africa’, which can be downloaded, is expected to be a catalyst as it provides digital space for African entrepreneurs to showcase their products, engage in business-to-business meetings and explore trade opportunities within the continent. It is expected to add value to initiatives such as the Intra Africa Trade Fair (IATF), which is a trade fair event that supports the objectives of the AfCFTA by facilitating trade and economic cooperation among African countries, being hosted in Algeria in 2025.
Kenya’s Economy Exhibited Robust Growth in 2023 Despite Persistent Challenges (World Bank)
Kenya’s real GDP growth accelerated to 5.6% in 2023, surpassing the previous year’s growth of 4.9%. However, GDP growth in 2024 is expected to slow down to 5.0%. This is according to the latest Kenya Economic Update (KEU) launched today, which adds that the 2023 growth was driven by the recovery of the agriculture sector, following improved weather conditions, and the services sector, with tourism and financial services contributing the most.
According to the 29th edition of the Kenya Economic Update: Fostering Trade for Robust Growth and Dynamic Job Creation, tight fiscal and monetary policies, elevated inflation, rising debt service obligations, high borrowing costs that constrained access to global capital markets, and the sharp depreciation of the shilling, framed Kenya’s macroeconomic performance in 2023. Despite this challenging environment, Kenya’s economic growth demonstrated resilience and accelerated, driven by the government’s strategic policy measures that have bolstered overall macroeconomic stability.
Ghana Launches New Initiative to Promote Sustainable Cocoa Production (UNDP)
Ghana has launched a new initiative in collaboration with the United Nations Development Programme (UNDP), the Forestry Commission, and the Ghana Cocoa Board (COCOBOD), with funding from the Swiss State Secretariat for Economic Affairs (SECO). This collaboration marks Ghana’s entry into the third phase of the Green Commodities Programme (III), building on the progress made since 2010 towards sustainable agricultural production. This joint effort aims to drive meaningful change and promote environmentally friendly practices in Ghana’s agricultural sector.
The initiative, titled Effective Collaborative Action for Sustainable Commodity Production and Trade, aims to foster Hotspot Intervention Area (HIA) Governance Board relations between the six HIAs and strengthen the stakeholder effectiveness and efficiency to combat deforestation and forest degradation, improve farm resilience, increase cocoa farmers’ revenues, and reduce poverty.
Customs: Why we are intensifying efforts on trade modernisation (The Sun Nigeria)
The Nigeria Customs Service ( NCS) has said it is intensifying efforts on trade modernization so as to enhance trade facilitation, efficiency and revenue generation. This is as the NCS said it is working towards deploying a Unified Customs Management system geared towards seamless transactions by importers.
The National Public Relations Officer, Abdullahi Maiwada, a Chief Superintendent of Customs, stated this yesterday, in an interview with journalists, after a media tour of the Trade Modernization office, in Abuja. Maiwada noted that the ongoing modernization project is an effort of the Comptroller-General of Customs ( CGC), to consolidate on the past gains of the service, in the discharge of its statutory duties..
“This project started some years ago, and we need to update members of the press and public, and generally our stakeholders on what we are doing so far in trade facilitation which is the core and at the centre of what we are doing. The benefit of Trade Modernization Project, let me be more specific with you, is in terms of trade facilitation, efficiency in customs delivery, and in terms of revenue generation. That is the essence of modernization. Automation of our processes and procedures is part of our efforts to make sure that we facilitate trade, we effectively collect revenue for Nigeria.”
The GTI was established in accordance with the decision of the 7th Ministerial Directive of the AfCFTA Council of Ministers responsible for Trade, which was adopted by Heads of State and Government in February 2022. The initiative is an interim solution to kick-start meaningful trade among interested State Parties that have met the minimum requirements for commencing trade under the Agreement, to test the readiness of the private sector, and to test the operational, institutional, legal and trade policy environment under the AfCFTA.
The main purpose of this research is to document and provide practical information on how a few specific trade relationships that have taken place in the early stages of the GTI evolved and were managed. It also helps to draw lessons from the experiences of the participants that can enable other State Parties to navigate the AfCFTA implementation processes more effectively and ultimately catalyze increased intra-African trade under the AfCFTA in the years to come.
The study documented export/import processes in the participating countries analyzed to gain a better understanding of the effectiveness of import and export procedures, regulatory and institutional structures put in place to support the implementation of the AfCFTA agreement. It also identified key challenges encountered and successes achieved and drew lessons and recommended remedial actions where necessary.
AfCFTA: African countries commit to increase intra-continental trade to 50% by 2030 (Businessday NG)
At the Summit convened in Abuja to propel the implementation of the AfCFTA, ignite economic growth across the continent, dismantle all obstacles hindering the full adoption of the agreement and elevate intra-African trade attendance top representatives of countries including Ghana, Kenya, and South Africa among others. Sam Ohuabunwa, President, of Africa Economic Summit 2024, briefing journalists on the key resolutions from the Summit said African nations have expressed readiness to tap the opportunities in the AfCFTA significantly.
He decried that Africa currently has the lowest intercontinental trade in the world and called on African governments to increase infrastructural development, provide an attractive investment climate, and promote private-public sector collaboration to facilitate productivity, wealth creation and poverty minimisation. He said the 3rd Africa Economic Summit was an opportunity for Africa to leverage strength and become truly competitive. “We call on all African Leaders to Preach the Concept of One Africa! One Family! One Economy,” he said. Other recommendations made by stakeholders at the meeting include investing in and strengthening Digital Transformation to drive Economic development.
Proposed visa restrictions raise concerns for SADC Tourism Alliance (Namibia Economist)
The contemplation of visa restrictions has stirred unease within the Southern African Development Community (SADC) Business Council Tourism Alliance, highlighting apprehensions over its potential impact on the nation’s tourism sector and overall economic progress. On 25 May, the cabinet greenlit the Ministry of Home Affairs, Immigration, Safety, and Security to enforce an entry visa requirement for nationals hailing from countries that haven’t reciprocated Namibia’s favourable visa policies.
Expressing dismay on Tuesday, the SADC Business Council Tourism Alliance voiced concerns that this move might run counter to Namibia Airports Company’s ‘Air Connect Namibia’ strategy, aimed at enhancing international flights and connectivity. The Alliance warned that these proposed visa restrictions could cast adverse effects on various sectors of Namibia’s economy, including tourism, hospitality, transportation, and retail, all of which heavily rely on international visitors.
Regional workshop empowers East and Southern Africa to secure and facilitate cross-border e-commerce (WCO)
From 28 to 30 May 2024 the World Customs Organization (WCO) delivered a Regional Workshop on e-commerce for East and Southern Africa (ESA) at the Integrated Customs Clearance Centre in Plaine Magnien, Mauritius. The objectives of the event were to raise awareness of the WCO tools and initiatives aimed at facilitating and securing cross-border e-commerce and to provide a forum for the sharing of information on challenges and good practices, thus promoting regional cooperation.
Throughout the event, the Workshop facilitators provided detailed explanations of the 16 standards of the WCO Framework of Standards on Cross-Border E-Commerce (E-Commerce FoS) and the tools available to support their implementation, namely the tools forming part of the E-Commerce Package and the Immediate Release Guidelines. Particular focus was placed on the submission of advance electronic data and risk management, along with efficient revenue collection in the e-commerce environment and the challenges faced by Members in that regard, notably those related to Customs valuation.
“With over 62% of African countries relying on natural resources for their GDP, the circular economy is crucial for the continent’s growth. Strategic investments and innovative policies can unlock a 2.2% increase in GDP for Africa, generate 11 million jobs and access a global circular economy worth USD 526 billion,” said Dr. Anthony Nyong, Director of the Department for Climate Change and Green Growth at the African Development Bank (AfDB).
Dr. Nyong was speaking in Nairobi on Friday on behalf of Kevin Kariuki, the AfDB Group Vice-President for Energy, Climate Change and Green Growth, at a panel discussion on the theme: “Transforming African Economies through Circular Solutions – The Case of the Africa Circular Economy Facility”. Organised by the AfDB’s Climate Change and Green Growth Department through the Africa Circular Economy Facility (ACEF), the panel was held on the sidelines of the Bank’s 2024 Annual Meetings.
The event highlighted approaches to stimulating African economies through circular solutions, with each panelist contributing their view on advancing the circular economy across the continent. As it promises to unlock multi-billion-dollar economic potential and help Africa respond to the challenges of the triple global crisis, the circular economy is crucial for sustainable development in Africa, the panel agreed.
New data centre funded by African Development Bank will cement national and subregional digital sovereignty (Intelligent CIO Africa)
“Congo will soon be the only country in Central Africa to have its own data centre,” said Michel Ngakala, Co-ordinator of the Central Africa Fibre-Optic Backbone project, which includes Congo. With the project’s funding of €66.55 million (€52.47 million from the African Development Bank and €14.50 million from the government of Congo) 600 kilometres of fibre optic cable on the major interconnecting routes with Cameroon (341km) and the Central African Republic (281km) via the Congo River will be laid and the data centre built. Some €13.8 million of the total has been allocated to build and run the data centre. “This project will cement the country’s digital sovereignty,” said Ngakala.
Korea Pledges Billions of Dollars at Inaugural Leaders’ Summit with Africa (AfDB)
The Republic of Korea will commit $14 billion in export financing to support Korean companies investing in Africa while increasing its official development assistance (ODA) to $10 billion by 2030.
The President of Korea, Yoon Suk Yeol announced this on Tuesday in Seoul at the opening of the first Korea-Africa Summit, attended by 25 African heads of state and government, as well as the president of the African Development Bank Group Dr Akinwumi Adesina. Up to 48 African countries were represented at the summit to discuss, “The Future We Make Together: Shared Growth, Sustainability, and Solidarity.”
President Yoon Suk Yeol pledged that Korea would extend its Trade and Investment Promotion Frameworks, and Investment Protection Agreements to African countries. African leaders praised Korea for its open and mutual approach to strengthening cooperation with the continent. They highlighted investment opportunities in their own countries and across the continent.
Benin hosts steering committee meeting of WTO-FIFA “Partenariat pour le Coton” initiative (WTO)
The Government of Benin is hosting in Cotonou on 4-6 June a Steering Committee meeting of the Partenariat pour le Coton, an initiative aimed at supporting African countries’ participation in cotton value chains. It is the first time the Steering Committee has met in Africa since the project was launched by WTO Director-General Ngozi Okonjo-Iweala and FIFA President Gianni Infantino at the 13th Ministerial Conference in February 2024. Participants, including the WTO, were updated on the latest progress and discussed next steps to achieve concrete results for cotton producers.
Global public debt hits record $97 trillion in 2023, UN urges action (UNCTAD)
In a new report released on 4 June, the United Nations sounded the alarm over the escalating debt burdens to global prosperity. Titled “A world of debt 2024: A growing burden to global prosperity”, the report highlights the unprecedented surge in public debt – comprising both domestic and external general government borrowing – which reached a historic peak of $97 trillion in 2023, up by a notable $5.6 trillion from the previous year. Particularly in Africa, faltering economies in the wake of multiple global crises have resulted in a heavier debt burden. The number of African countries with debt-to-GDP rations above 60% has increased from 6 to 27 between 2013 and 2023.
With the crisis intensifying, actions to limit global warming to 1.5°C become urgent. Despite this urgency, developing countries are currently allocating a larger proportion of their GDP to interest payments (2.4%), than to climate initiatives (2.1%). Debt is limiting their capacity to tackle climate change.
With developing countries facing dire outlook, United Nations Secretary-General and world leaders aim to stimulate economies to achieve SDGs (United Nations Sustainable Development)
With many developing countries reeling from repeated economic shocks and debt burdens that far outstrip their ability to pay, United Nations Secretary-General António Guterres will meet today with Heads of State and Government to advance efforts to put countries back on a sustainable development path.
At their first meeting, under the leadership of the 10-member “SDG Stimulus Leaders Group,” countries will discuss recommendations and actions needed to address the dire financial conditions holding back developing economies. “We need a surge in action now for the Sustainable Development Goals (SDGs). Developing countries — and billions of people — are facing the worst economic outlook in more than a generation,” the Secretary-General said. “Financing is the fuel of development and we must ensure that countries are not forced to run on empty.”
At today’s meeting, leaders will discuss the Secretary-General’s call for an SDG Stimulus, a wide-ranging proposal for near-term actions to provide developing countries with the financial resources to alleviate their immediate constraints and put countries back on an accelerated development path.
The SDG Stimulus identifies three areas of action: tackling the high cost of debt and rising risks of debt distress; massively scaling up affordable long-term financing, especially through multilateral development banks (MDBs), by at least $500 billion per year; and expanding contingency financing to countries facing liquidity constraints.
Oceans in focus: DP World and un global compact spearhead action at g20 dialogue (Government of Dubai Media Office)
DP World and the UN Global Compact have joined forces to drive solutions at the G20 Ocean Dialogue in Dubai today, bringing together industry leaders and sustainability experts to shape a concrete plan to protect the health of our oceans. The G20 Ocean Dialogue focuses on developing a 10-point action plan to tackle issues such as decarbonization, plastic pollution and the preservation of marine ecosystems. Discussions will also include nature-based solutions and financing to address climate change and build resilient communities.
This is the latest collaboration on ocean conservation by DP World and the UN Global Compact – a voluntary initiative which encourages businesses to adopt sustainable practices. Last year, they launched the first Ocean Climate Nexus Centre (OCNC) in the UAE to foster research, collaboration and innovation in sustainable ocean practices.
Break free from pollution, climate chaos and ‘biodiversity decimation’, UN chief urges (UN News)
In a message marking Wednesday’s World Environment Day, António Guterres emphasized that countries “must deliver” on all their commitments to restore degraded ecosystems and land, and on Kunming-Montreal Biodiversity Framework, the global agreement to protect biodiversity. “ By restoring ecosystems, we can slow the triple planetary crisis : the crisis of climate change, the crisis of nature and biodiversity loss, including desertification, and the crisis of pollution and waste.”
Related news from the UN:
World heading towards new temperature records, UN weather watchdog warns
There is an exit off ‘the highway to climate hell’, Guterres insists
WTO spotlights inclusive trade for clean energy transition on Environment Day (WTO)
International cooperation on trade is critical for the fast and fair transition to clean energy needed to combat climate change, speakers said at an event organized by the WTO Secretariat on World Environment Day on 5 June. Deputy Directors-General Jean-Marie Paugam and Xiangchen Zhang underlined trade policy opportunities to support the transition to clean energy, including for developing members and least-developed country (LDC) members.
DDG Paugam said: “The clean energy transition is a crucial objective in our path to sustainable development. Trade policy tools — such as rebalancing tariffs in line with climate ambitions or aligning standards to accelerate decarbonisation efforts — can fast-track transition efforts and expedite inclusion of developing economies into green value chains.”
West African nations call for firms to be able to offset carbon (Reuters)
A group of 10 West African countries has weighed into a debate over whether companies around the world should be allowed to use carbon offsets to cut emissions, arguing they are critical to attracting financing for climate and conservation efforts.
While some scientists and technical advisers have criticised offsets as undermining efforts to rein in climate change by permitting continued greenhouse gas emissions, others see them as a necessary tool to boost crucial finance.
In a letter to the Science-Based Targets initiative (SBTi), the world’s top corporate climate-target verifier, the 10 countries called on its trustees to ensure offsetting is included within net-zero guidance to companies. The letter, signed by Burkina Faso, Cape Verde, Ivory Coast, Gambia, Guinea-Bissau, Guinea, Liberia, Mali, Senegal and Togo, said recent reports questioning the validity of offsetting emissions were the work of “misguided activists”.
Quick links
Africa doesn’t have a choice between economic growth and protecting the environment: how they can go hand in hand (The Conversation)
Cross-border payments are still costing businesses in Africa too much (CNBC Africa)
Daring to win against the odds (Trade for Development News)
Artificial Intelligence: A game-changer for sustainable development (OHCHR)
India Seeks WTO Arbitration With Australia Over Services Trade Issue (NDTV Profit)
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Persistently poor GDP growth most significant feature of South Africa’s economic performance (Engineering News)
South Africa’s continued disappointing economic growth remains the most significant feature of the country’s macroeconomic performance, North-West University Business School economist Professor Raymond Parsons has said following the release of the first-quarter GDP figures by Statistics South Africa on June 4. “The negative GDP figure of -0.1% quarter-on-quarter again reflects how difficult it has been for the economy to gain momentum in the recent past,” he noted.
Parsons said the persistent decline in per capita income over several years has meant that South Africa, as a whole, has become poorer. “South Africa needs to break out of its low-growth trap in order to more successfully tackle the triple challenges of unemployment, poverty and inequality,” he said.
Trade deficit of N$3.1 billion recorded in April (Namibia Economist)
The trade balance for April 2024 stood at a deficit of N$3.1 billion, marking a decrease from the N$4.6 billion deficit recorded in March 2024 and an increase from the N$1.2 billion deficit reported in April 2023.
According to trade data released by Namibia’s Statistics Agency this week, trade composition by partner, South Africa emerged as the country’s largest market for both exports and imports. The export basket for April 2024 primarily consisted of minerals such as precious stones (diamonds), uranium, non-monetary gold, and petroleum oils, with fish being the only non-mineral product among the top five exported items.
Affordable Smartphones Boost Kenya’s Digital Economy and Financial Inclusion (Innovation Village)
Kenya’s proactive approach to digital inclusion is yielding promising results, with the widespread adoption of locally-assembled, low-cost smartphones transforming the nation’s digital landscape. The East Africa Device Assembly Kenya (EADAK) plant, a public-private partnership, has produced over 490,000 4G-enabled handsets since its establishment late last year, with a significant portion already in the hands of consumers.
“Our proposition as a government is that with digitalization, we should be able to collect enough locally-generated revenue to the extent that we can sort external debt and finance local budgetary requirements,” said Eliud Owalo, cabinet secretary for information, communication, and digital economy.
Ghana’s New Ship Repair Dock Project Funding Sealed As Financiers Sign $94 MN Syndicated Loan (AfDB)
A consortium, including the African Development Bank, has signed an agreement to extend $94 million in senior debt funding to PMD Assetco Limited (PMD) for the construction and operation of a floating dock ship repair facility in Ghana’s western Takoradi port. Other consortium members are the African Export-Import Bank (Afreximbank), the Eastern and Southern African Trade and Development Bank (TDB), and Petra Pension Schemes.
With this milestone, the project, nicknamed “Shiprite,” has secured the total commitment of all providers for the required $137 million in capital. When completed, the facility will house a new 13,500-ton lift-capacity floating drydock, 30,000 square meters of reclaimed land, a 200-meter jetty, a modern workshop, offices, and heavy marine equipment.
Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development Bank, Afreximbank, emphasized the project’s strategic significance: “The strategic location of this facility will provide shipowners whose vessels trade within the Gulf of Guinea with world-class repair and maintenance services.”
1D1F not complete solution for industrialisation, says AGI’s Seth Twum Akwaboah (MyJoyOnline)
The CEO of the Association of Ghana Industries, Seth Twum Akwaboah, says government’s flagship ‘One District One Factory’ (1D1F) initiative, while beneficial, is not a complete solution to the country’s industrialisation challenges. According to him, the policy must be complemented by a conducive environment where factories can operate independently of government support, engage in significant business activities, export, expand, and thrive.
“The incentive rate is very important, and indeed the idea of providing incentives to attract investment into some of these areas that may not be that attractive to the typical private sector operators. So that is important. Another aspect that makes it feasible and very important is the value chains working,” Mr Akwaboah said. “If you only set up a factory and you don’t have the raw materials provided in a consistent, reliable, and regular manner, you have a problem with the production volumes.
He noted that currently, some major companies rely on local sourcing of materials but face shortages, sometimes resulting in the need for imports of these raw materials needed for the factories to operate, including those in the agricultural sector. The CEO stressed the necessity of a robust agricultural sector that produces and supplies raw materials at competitive prices to support industrial activities.
IMF Executive Board Completes 2024 Article IV Consultation with Seychelles (IMF)
Seychelles’ real GDP growth is estimated at 3.2 percent in 2023 compared to 15 percent in 2022. Tourist arrivals rose to about 91 percent of the pre-pandemic high (2019) but spending per tourist was flat. Information technology was the main impetus of non-tourism growth, along with fishing and construction. However, unseasonably heavy rains and flooding combined with an industrial explosion in December contributed to a contraction in manufacturing.
Looking ahead, real GDP growth is projected to rise to 3.7 percent in 2024, and annual average inflation is expected to reach 1.2 percent. While the external current account is expected to remain broadly stable, gross foreign exchange reserves are projected to reach $751 million by end-2024, equivalent to 3.4 months of imports. Potential downside risks include Seychelles’ high vulnerability to external shocks (such as volatility in commodity and shipping prices), climate-related events, or disruptions to tourism.
IMF Executive Board Concludes 2024 Article IV Consultation with Djibouti (IMF)
After the negative shock of the pandemic and a weak recovery in 2021, the November 2022 peace agreement in Ethiopia bolstered the Djiboutian economy. Growth is expected to have reached about 7 percent in 2023, supported by the rebound in port activity and construction. Inflation is expected to have averaged around 1.8 percent in 2023 and projected to remain subdued.
The economic outlook remains cautiously optimistic for 2024 and the medium-term albeit subject to considerable uncertainty. Regional risks, including potential trade disruptions, pose challenges in a context of tight budgetary resources. Stronger-than-expected trade from Ethiopia could support growth, and fully addressing the debt burden could improve debt sustainability and create fiscal space.
Prioritise innovation-friendly policies for sustainable development - Govt urged (Graphic)
The best way to ensure sustainable development is for the government to continue to pursue policies that favour innovation and industrialisation. The Chairman of the Association of Ghana Industries (AGI) in the Greater Accra Region, Tsonam Cleanse Akpeloo, who proposed, said it was a sound policy environment that allowed innovation and ideas to thrive and create sustainable jobs for national development.
“This calls for government to make available financing through reduced policy rate so that innovators and entrepreneurs can have access to cheaper loans to promote their ideas,” he said. Mr Akpeloo, who made the call at the Falling Wall Foundation’s Lab Ghana last Friday, stressed that the government must create tax incentives to support the growth of innovative ideas.
Shettima wants Africa to prioritise intra-continental trade (Businessday NG)
Vice President Kashim Shettima has called on African countries to prioritise intra-African trade over foreign investments that often exploit the continent’s resources. Speaking at the Africa Economic Summit 2024, in Abuja, Shettima emphasised the need to boost African trade globally and within the continent itself.
“African nations remain at the base of the global index, meaning that we need to now go beyond looking for foreign investors to come and explore and exploit what they need for sophisticated manufactures from the deep underbellies of our motherland”, Shettima stated.
The vice president, who was represented by Tope Fasau, his special adviser on economic affairs, also urged African countries to incentivise their vast number of highly knowledgeable citizens around the world, especially those with exceptional expertise in science, technology, and the arts, to return and contribute to transforming the continent.
He highlighted the importance of the Africa Continental Free Trade Agreement (AfCFTA) as a key initiative to enhance intra-African trade. However, Shettima noted that the implementation of AfCFTA has been slow and called for a renewed effort to accelerate its growth. “African nations must understand that this is a mutually beneficial initiative,” he added.
Greening Africa’s trade (The East African)
From March 23 to 25, 2024, the global freight and logistics industry experts gathered in Amsterdam, Netherlands for the second annual Smart Freight Week, hosted by Smart Freight Centre (SFC). This event marked a substantive step toward greening Africa’s trade.
The conference’s theme, “A Journey to an Efficient and Zero-Emission Logistics Sector,” underscored the alarming rise in greenhouse gas (GHG) emissions from freight activities along Africa’s major trade corridors. Despite Africa’s low global emissions at less than three percent and relatively minimal per capita emissions, its rapid increase in emissions — ranking third under the fastest-growing emissions category as indicated by the Intergovernmental Panel on Climate Change (IPCC) in its 6th Assessment Report — threatens its trade potential with the global market demanding environmentally friendly products and is an urgent call for immediate and decisive action.
Stakeholders in the aquaculture industry urged to take advantage of AfCFTA (MyJoyOnline)
Stakeholders in the aquaculture industry have been urged to take advantage of the African Continental Free Trade Area (AfCFTA). Speaking at the Aquaculture Awards 2024, Executive Director of Tarzan Enterprises, Ziad Hamoui emphasised that, Ghana is not the only country facing value chain disruptions. He advised industry players to turn the challenges into opportunities to enable them to tap into prospects beyond Ghana.
“Ghana is not the only country that has to deal with challenges such as value chain disruptions, inflation, or price increases. It cuts across the continent. The AfCFTA is not a magic wand. It is actually a catalyst that allows rapid African development but stakeholders need to keep in mind that not only should they focus on creating one large market but focus on manufacturing,” the guest speaker advised.
“As we celebrate the achievements and impact in the sector, we must also acknowledge the challenges that lie ahead. Climate change, environmental degradation and socio-economic disparities continue to present formidable obstacles to the sustainability and resilience of aquaculture systems worldwide. Nevertheless, in the face of these challenges, we find opportunities to innovate, collaborate and pave the way for a more sustainable and inclusive future,” she said.
Joint green efforts by Africa, China key to growth (China Daily)
Africa’s vast potential for renewable energy, combined with China’s technological expertise and investment capacity, presents a unique opportunity for mutual economic growth, experts say. This collaboration can drive sustainable development, alleviate energy poverty and stimulate economic activities across the African continent, they said.
Speaking during the African Development Bank Group’s annual meeting in Kenya’s capital Nairobi, which concluded on Friday, Kevin Kariuki, the bank’s vice-president for power, energy, climate and green growth, said the continent needs to tap into renewable energy for industrial growth. “I believe that by investing in Africa’s renewable energy infrastructure, China can help build large-scale solar farms, wind farms and hydroelectric plants. These investments can provide reliable and affordable energy, which is crucial for economic growth.”
The continent has not fully tapped into its renewable energy sector, according to the State of Africa’s Infrastructure Report 2024 published last month by the Africa Finance Corporation. This has continued to affect its economic growth rate, especially in the manufacturing sector, the report said. “Our inability to tap into the renewable energy sector continues to slow down our growth rate,” African Development Bank Group President Akinwumi Adesina said.
Korea cements ties with African nations in key mineral supply chains (The Korea Herald)
South Korea and African nations have pledged to intensify cooperation for enhanced trading while supporting Africa’s path for shaping a future of sustainable co-prosperity. The 2024 South Korea-Africa Summit, the inaugural summit between Korea and 48 African countries, kicked off in Seoul on Tuesday.
The summit meetings come amid Africa’s increasing strategic significance, with abundant natural resources needed for producing next-generation batteries like cobalt, lithium, manganese, nickel and graphite. Despite Africa’s strong economic potential, with its growth rate of 3.2 percent, exceeding the global average of 2.9 percent last year, cooperation between Korea and Africa has remained weak.
On Monday, Yoon held talks with leaders of 11 African nations -- Lesotho, Cote d’Ivoire, Mauritius, Zimbabwe, Togo, Rwanda, Mozambique, Sao Tome and Principe, Guinea-Bissau and Cabo Verde on Monday. He had summit meetings with his Sierra Leone counterpart on May 31 and leaders of Tanzania and Ethiopia on Sunday.
To bolster cooperation with the continent, Korean companies should tap into sectors that lead Africa’s growth such as manufacturing, mineral, energy and startups tied to information communication technology and green technology, the Federation of Korean Industries, which consists of Korea’s business leaders, said on Tuesday.
“Africa’s supply chain cooperation in eco-friendly industries like electric vehicles will become more important as the continent produces more than 60 percent of the world’s cobalt and 70 percent of the world’s platinum,” the FKI said in a report.
Speech - DG Ngozi Okonjo-Iweala - Economic integration through WTO accession and membership (WTO)
This Forum provides a valuable platform for discussions on systemic issues and practical considerations related to the WTO through the regional lens of Central Asia. These exchanges are timely and much needed. The region, as a whole, has been seeking to position itself as an attractive economic hub in the context of shifting geopolitical dynamics. And what better place to reflect on these issues than here in Almaty, in the “heart” of Central Asia?
Long-distance trade played a major role in the cultural, religious, and artistic exchanges that became synonymous with this region in antiquity. In ways still very recognizable today, the trade routes of the Silk Road for centuries served to transfer raw materials, foodstuffs, and luxury goods from areas with surpluses to others where they were in short supply. More recently, with the fading of old, ideological battle lines and the establishment of new transportation links, Central Asia has become a distinct geographic and economic entity, and trade promises to once again become a driver of growth, employment, and development across the region.
Global Container Port Performance Index 2023 (World Bank)
The newest global Container Port Performance Index (CPPI), developed by the World Bank and S&P Global Market Intelligence, reveals that East and Southeast Asian ports excelled in 2023, accounting for 13 of the top 20 places. More than 80% of merchandise trade is transported by sea, so the resilience, efficiency, and overall performance of ports is crucial to global markets and economic development.
Regional disruptions impacted port performance everywhere, according to the new report. “While the challenges caused by the COVID-19 pandemic and its aftermath eased further in 2023, container shipping continues to be an unpredictable and volatile sector,” said Martin Humphreys, Lead Transport Economist at the World Bank. “Major ports need to invest in resilience, new technology, and green infrastructure to ensure the stability of global markets and the sustainability of the shipping industry.”
Despite its relatively low ranking, Dar es Salaam Port in Tanzania managed to shave ship arrival times by 57%.”There is a greater awareness and focus on resilience and efficiency of maritime gateways and greater understanding of negative impact of port delays on economic development,” said Turloch Mooney, Head of Port Intelligence & Analytics at S&P Global Market Intelligence. “The highly interconnected nature of container shipping means the negative effect of poor performance in a port can extend beyond that port’s hinterland and disrupt entire schedules. This increases the cost of imports and exports, reduces competitiveness and hinders economic growth and poverty reduction.”
A world of debt Report 2024: A growing burden to global prosperity (UNCTAD)
Public debt can be a powerful tool for development, enabling governments to finance critical expenditures and invest in a better future for their people. However, when public debt grows excessively or rapidly, it becomes a heavy burden, particularly for developing countries. Recent events have worsened this challenge. The rise in global interest rates since 2022 further strained public budgets in developing countries. High interest payments are outpacing the growth in essential public expenditures such as health, education, and climate action. In the developing world, home to 3.3 billion people, one out of every three countries spends more on interest payments than on these critical areas for human development.
Global Leaders Forum: Charting a new development course in a changing world (UNCTAD)
The 60th anniversary of UN Trade and Development (UNCTAD) will center on the Global Leaders Forum themed “Charting a new development course in a changing world” (12-14 June, Palais de Nations, Geneva). Exploring new strategies for development, the Global Leaders Forum will focus on integrated treatment of trade and development, and the interrelated issues of finance, technology, investment and sustainable development. The forum aims to inspire fresh perspectives on development thinking to address the complexities of “polyglobalization”, characterized by growing economic diversity and decentralization, amidst the rising interdependence of countries on a global scale.
New analysis from the International Energy Agency (IEA) finds that countries have a significant opportunity over the coming months to develop clear plans for boosting renewable power that could help move the world closer to achieving the COP28 goal of tripling global capacity by 2030.
COP28 Tripling Renewable Capacity Pledge: Tracking countries’ ambitions and identifying policies to bridge the gap, published today, finds that while renewable power is at the heart of achieving international energy and climate goals, very few countries have explicitly laid out 2030 targets for installed capacity in their existing Nationally Determined Contributions, or NDCs, under the Paris Agreement. Official commitments in NDCs currently amount to 1 300 gigawatts (GW) – just 12% of what is required to meet the global tripling objective set in Dubai.
Quick links
Is the US-NATO relations with Kenya bound to weaken the resolve to EAC integration? (New Vision)
Trade agreements: How African states are resisting pressure from the North but not managing to assert their priorities (Equal Times)
Electronic certificate of origin seen key in intra-Arab trade development (Gulf Times)
Women who trade: Strategies for empowerment across borders (Trade Finance Global)
Kremlin welcomes Turkey’s reported desire to join BRICS (Reuters)
What’s the global orange juice supply crisis - and should Australians be worried? (The Conversation)