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DMRE to remodel draft IRP 2023 in light of new information, curtailment plans (Engineering News)
Many of the submissions the Department of Mineral Resources and Energy (DMRE) has received from the first round of public engagements about the draft Integrated Resource Plan 2023 (IRP 2023) in January have revealed new sources of data to consider in the plan’s modelling, DMRE energy planning specialist Sonwabo Damba said on January 31.
He added that the modelling for the draft IRP 2023 did not take into account the implications of the 10% curtailment on the availability of grid connectivity in the Eastern Cape, the Northern Cape and the Western Cape.
Damba provided insight into where the department sources its data, and some of the assumptions that inform the modelling of the data. Importantly, the department considers unserved energy as a significant cost factor because peaking stations will have to run longer to make up for unmet demand, which is why its modelling had indicated that an energy system dominated by solar, wind and battery energy storage would be the highest cost system for the country to build, he said.
However, University of Cape Town senior scholar and National Planning Commission energy expert Professor Anton Eberhard pointed out that, when gas is included with a renewables- and battery-dominated energy mix, the outcome is a least-cost scenario. This scenario was used as the reference case by the department in the draft IRP modelling.
Itac creates temporary rebate provision for several products (Engineering News)
The International Trade Administration Commission of South Africa (Itac) has created a temporary rebate provision for the importation of certain cold-rolled steel and painted steel; a rebate facility for the importation of certain flat-rolled products of iron or non-alloy steel; and a temporary rebate facility for the importation of sheet piling of iron or steel. The commission has published details of these rebate facilities in three statements issued on February 1.
The commission found that the subject products are not manufactured locally. As such, the applicable customs duty has an unnecessary cost-raising effect on the domestic industry. Moreover, duty relief, through the creation of a rebate provision, should allow the applicant, together with the downstream manufacturing industry, to maintain, and potentially increase, profitability in both the medium and long term. Also, rebate provision will be made subject to an Itac permit issued in terms of applicable guidelines, rules and conditions.
There is no substitute for economic growth, Deloitte says ahead of 2024 budget (Engineering News)
A tight balance is expected for this year’s National Budget as South Africa’s woes continue; however, any significant, or fundamental, raising of taxes is not expected, but rather a tightening hold on revenue collections to bridge the budget gap.
South Africa’s 2024 budget is set in an environment that has an election year, companies in a “zombie zone” and treading water, a sluggish economy, a financially pressured tax base, increasing government dependents through social grants and global economic headwinds exposure, the latter of which requires a structural overhaul of the economy so as to not be as sensitive to external shocks.
While many factors will guide how the Budget will play out, infrastructure failures and no room to squeeze consumers leaves Finance Minister Enoch Godongwana in a tough position requiring careful balance. This emerged during a Deloitte pre-Budget roundtable on Wednesday, where a panel discussed their views on South Africa’s economy and what to expect from the upcoming Budget speech on February 21.
In his 2023 Medium-Term Budget Policy Statement (MTBPS), tabled in November 2023, Godongwana pointed to “significantly weaker” public finances, and owing to the increased fiscal consolidation that is required, National Treasury had said that tax measures will be proposed to raise additional revenue of R15-billion for 2024/25 in the 2024 Budget. Revenue collections were projected to be R56.8-billion below 2023 Budget estimates.
SA to advance the African agenda with focus on AfCFTA (SAnews)
South Africa places great importance on the African Union (AU) Summits, as the country forges ahead with its foreign policy of the advancement of the African agenda. This is according to International Relations and Cooperation Minister, Dr Naledi Pandor, who was briefing the media on Wednesday on developments in her department.
The summit, which will take place on 17 and 18 February in Addis Ababa in Ethiopia, will focus on education. Last year, the AU finalised a 10-year review of Agenda 2063.
A key recommendation, Pandor explained, is that the AU Member States must accelerate the implementation of the Agenda 2063 flagship projects that are aimed specifically at fast-tracking continental integration. The project particularly focuses on trade and market integration, free movement of people and infrastructure development. However, top of the agenda is the operationalisation of the African Continental Free Trade Agreement (AfCFTA), in which South Africa is playing a leading role.
She also announced that Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates have confirmed they are joining the BRICS (Brazil, Russia, India, China and South Africa) bloc after being invited to last year. “However, you’d be aware that Argentina has written to indicate that they will not act on this successful application by the previous administration to become full members of BRICS. And we accept their decision, particularly given that 30 countries have now written to Russia, expressing interest in becoming members.”
Key to AfCFTA’s success is improving SA ports, say officials (IOL)
South Africa’s government has admitted that improving the efficiency of the struggling national ports will be key to the success of the African Continental Free Trade Area (AfCFTA) agreement as the country has commenced preferential trade under. This comes as South Africa’s economy is being stifled by logistical bottlenecks as Transnet is struggling with weeks of backlogs caused by inadequate equipment at the ports and railway lines.
Since its inception in October 2022, the GTI has been instrumental in facilitating trade in “Made-in-Africa” goods among State Parties across various regional economic communities on the continent. Under the AfCFTA, South African-made vehicles could find new markets across Africa, benefiting from reduced tariffs and simplified trade regulations.
Freight forwarders note some progress in tackling logistics crisis, but call for intensification of collaborative efforts (Engineering News)
The CEO of the South African Association of Freight Forwarders (SAAFF) believes progress is being made in navigating the ‘perfect storm’ of South Africa’s current logistics crisis, which is strangling trade and investment. However, Dr Juanita Maree argues that there is still a pressing need to intensify the initiatives being pursued under the National Logistics Crisis Committee (NLCC), which was established in 2023 to arrest the precipitous decline in Transnet’s performance and to introduce reforms to enable greater private sector participation in the rail and ports systems.
Despite the strides made under the NLCC, SAAFF notes that the contribution of imports and exports to gross domestic product fell 8.7% year-on-year to 56.22% notwithstanding robust commodity markets. “The drop obliterated robust trade growth posted in 2022 – a recovery year after the impacts of the Covid-19 catastrophe,” she said. “[At] the worst of times recently, the inefficiencies in rail cost us R1-billion a day, while the inefficiencies at the ports amount to a loss of R200-million a day.”
Kenya and South Africa strengthen trade ties under AfCFTA framework (Capital News)
Kenya and South Africa on Thursday intensified their efforts to strengthen the African Continental Free Trade Agreement (AfCFTA) framework. The two nations that share cordial bilateral relations, marked a significant moment by initiating the first shipment of products under the AfCFTA framework across the African continent. South Africa led the way by sending a shipment containing refrigerators, paperboard, and steel products destined for the Kenyan market.
The launch occurred on the sidelines of the 13th AfCFTA Council of Ministers Meeting in Durban, with the President of the Republic of South Africa, Cyril Ramaphosa, presiding over the ceremony. Rebecca Miano, the Trade Cabinet Secretary in attendance, commended the initiative, highlighting the tremendous opportunity it presents for enhanced trade between the two nations.
Cabinet Secretary Miano emphasized that the consignment from South Africa serves as a genuine testament to the nation’s readiness for strengthened trade ties. Despite the relatively modest total trade figures of R9.7 billion between Kenya and South Africa in 2022, with South Africa holding a trade surplus, the implementation of the AfCFTA opens up avenues for substantial growth.
Kenya imports fridges from South Africa under AfCFTA (The East African)
Kenya is importing its first consignment of machinery, agricultural products and electronics, among them refrigerators, from South Africa under the African Continental Free Trade Area (AfCFTA). Going forward we shall expect imports from South Africa only of the products we do not manufacture in Kenya,” said Ms Miano.
Horticulture sector: Tanzania borrowing a leaf from Ethiopia (The Exchange Africa)
The fresh produce market is projected to reach US$40.24 billion by 2026 growing at an annual rate of 10.2 percent and Tanzania is angling for a pie of these billions from its horticulture sector. These statistics by Global Market Estimates (GME) show that the global horticulture market averages US$20.77 billion in 2021 and is growing rapidly. However, African countries such as Tanzania, which has enormous agricultural production potential still lag behind and only get to enjoy a small percentage of the over US$30 billion horticulture market.
“We believe, when we ensure access to information and knowledge including the adoption of appropriate technologies, market access, and advocating for business enabling environment, there is a potential of earning up to US$3 billion per annum through the Horticulture Industry,” comments Dr. Jacqueline Mkindi, the CEO, Tanzania Agricultural and Horticulture Association (TAHA). Mkindi adds that Tanzania is making considerable strides in developing the sector but has a long way to achieve its full potential.
“Massive achievements have been accrued so far, including increases in yields of fruits and vegetables by 200 – 300 per cent, increase in export earnings from US$64 million in 2004 to over US$779 million in 2019,” she notes.
Sugar shortages in Tanzania lead to a spike in prices (The Exchange Africa)
A biting sugar shortage in Tanzania is causing the price of the commodity to skyrocket over the last few months. On the one hand, the sugar shortage is blamed on heavy rains at the end of last year while on the other hand, there are allegations of hoarding and price setting by industry cartels.
With little to no evidence of the latter, the speculations remain just that, mere allegations. However, what is undisputed is sugar shortage and the attendant surge in prices for the sweetener. Sugar shortage in Tanzania has persisted for almost an entire year now. So profound is the problem that President Dr Samia Suluhu Hassan was forced to issue a public statement explaining the government’s plan to resolve the issue.
Kenyan, Ethiopian cut flowers to face more scrutiny in EU (Capital Business)
Cut rose flowers from Kenya and Ethiopia will be scrutinised more before accessing the European Union market. According to the Fresh Produce Exporters Association of Kenya, the flowers will be checked 25 percent more starting this May. The new measures follow the review of EU regulatory measures that sought to take precautionary measures over the false codling moth.
“FPEAK has been advised that the EU Member States representatives, meeting with the EU Commission in the EU Standing Committee SCOPAFF earlier this month have formally adopted the anticipated changes to the minimum percentage of plant health import inspections at EU borders of consignments of cut roses from Kenya and Ethiopia,” said FPEAK in a statement.
World Bank Report: Reducing Electricity and Telecommunications Costs in Djibouti Could Boost Growth and Add Jobs (World Bank)
Djibouti has achieved remarkable economic growth over the past two decades, driven by strategic infrastructure investments, its advantageous location, and political stability in a volatile region. With an average annual GDP growth of 4.4 percent between 2000 and 2021, the nation’s real GDP per capita has more than doubled, surpassing USD 3,200 in 2021.
While these gains have translated into solid progress in reducing poverty, from 22.3 percent in 2013 to 17 percent in 2019, more must be done to ensure that the benefits are shared by all segments of society, according to a new World Bank report released today.
The report, titled “Djibouti Beyond the Ports and Bases: A Path to Prosperity for All”, highlights the economic potential of the country. To achieve its potential, Djibouti faces multiple economic challenges, including a limited domestic market, high operating costs in the electricity and telecommunications sectors, limited economic diversification, and the growing challenge of climate change.
“Djibouti is uniquely placed, with assets that can be leveraged to expand its market and attract international private investors,” said Stephane Guimbert, World Bank Country Director for Djibouti, Egypt, and Yemen. “As Djibouti enters its next stage of development, it is essential that the private sector drives growth and that the benefits of growth be shared by all segments of society, particularly women and young people,” he added.
How Embracing Intellectual Property Rights Can Unlock SME Growth in Liberia (FrontPageAfrica)
IPR protection, if sought after by most of the country’s SMEs, would have strategically positioned them to capitalize on the EU-Africa trade agreements as well as the African Continental Free Trade Area (AfCFTA), which provides duty-free access to vast markets for growth. These trade agreements, however, had at their core the protection of IP rights as a key requirement for trade. Studies by the European Union Intellectual Property Office and the European Patent Office have revealed that IP protection is not just key to market competitiveness but also boosts the revenue of SMEs that have IP rights protected, compared to SMEs that do not.
The failure of Liberian struggling SMEs to, therefore, take full advantage of the benefits of IP rights has resulted in a significant number of them missing out on opportunities for growth and income generation.
This is why a healthy SME sector is critical to the overall prosperity of Liberia since half of the country’s employed population is found in the informal sector, largely controlled by SMEs, making IP protection and commercialization key. Each SME entering the Liberian market potentially harbors a unique product or invention capable of revolutionizing the country’s economic landscape. However, the limited utilization of IPR among them poses a significant barrier to this transformative potential.
How Africa states’ indebtedness, collapsing currencies could be fixed (The East African)
Highly indebted African countries are facing stark trade-offs between servicing expensive debt, supporting high and growing development needs, and stabilising domestic currencies. Government debt has risen in at least 40 African countries over the past decade. As a result, some are experiencing a bad combination of high debt, elevated development spending needs amid budget shortfalls, and unfavourable exchange rate pressures.
These issues have become more pressing since 2022, when persistently high inflation prompted major central banks around the world to embark on the most aggressive monetary tightening campaign in decades. Monetary policy tightens when central banks raise interest rates.
Steps can be taken to expand the policy space to tackle these challenges while easing difficult trade-offs. These steps include prioritising public spending measures that raise growth, fixing the revenue collection problem facing all African countries, and restructuring unsustainable government debt.
ECOWAS: Niger, Mali, Burkina Faso Exit Poses Security Threat (Leadership News)
Civil Society Organisations (CSOs) in Northern Nigeria have written to President Bola Ahmed Tinubu, stating that the withdrawal of Niger, Mali and Burkina Faso in the Economic Community of West African States (ECOWAS) poses a big security threat. In the letter they jointly signed, the CSOs said the withdrawal of Niger, Mali, and Burkina Faso poses a direct threat to the collaborative efforts required to combat regional security challenges.
“The withdrawal of Niger, Mali, and Burkina Faso poses a direct threat to the collaborative efforts required to combat regional security challenges. These countries, particularly Mali and Niger, are critical in the fight against terrorism and insurgency, given their geographic positioning and the nature of cross-border security threats.”
How Burkina Faso, Niger, Mali’s exit from ECOWAS will affect Nigeria (The ICIR)
Nigeria will likely face more security and economic challenges following the exit of Burkina Faso, Mali, and Niger as the country’s fight against insurgency and dwindling economy bite harder.
The exit of these countries at a point when Nigeria heads ECOWAS leadership, some diplomatic analysts said, was a result of “poor exploration of diplomatic channels,” professor of Political Science and International Relations and Director of Strategic Partnership at Al-Muhibbah University, Abuja, Muhktar Imam, said. “There is a need for foreign policy drive to re-strategise and think around the foreign policy. The grievance of some of the exited countries is that the management and leadership of ECOWAS are beginning to derail from the founding fathers’ vision,” Muhkar observed.
China-Africa trade hit US$282 billion in 2023 but Africa’s trade deficit widens (South China Morning Post)
“The 1.5 per cent growth was … a reflection of strong resilience of the China-Africa trade,” Jiang Wei, head of the commerce ministry’s West Asian and African affairs department, told reporters on Wednesday. Observers said the modest growth followed the pattern of China’s overall trade with other regions as it faced severe economic headwinds, including weak business and consumer confidence, tepid global demand, a property crisis and heavy local government debt that could constrain the ability to stimulate the economy.
Last year, the value of China’s total global trade slumped 5 per cent from the previous year to US$5.93 trillion. According to Chinese customs data, in 2023 China recorded a drop in trade with its top five trading partners in Africa – South Africa, Angola, Nigeria, the Democratic Republic of Congo (DRC) and Egypt – which are predominantly resource-rich nations.
China imports raw materials from the continent, including oil, copper and aluminium, whose prices dropped in the past year. “A fall in these and Africa’s trade earnings will fall, even if volumes stay the same – and sometimes even if they grow,” Johnston said. “To a large extent today, Africa’s trade balance depends on the price of oil.”
Euro-Africa Trade: New paradigm needed for increased investment (GBC Ghana)
The President, Nana Addo Dankwa Akufo-Addo, says a new paradigm hinged on structural transformation must be defined to allow African economies trade at the high end of the global value chain. In the search for a robust Euro-Africa trading system, in particular, a structural transformation to change course from raw material producing and exporting economies, to value-adding, industrialising economies, was a necessity, he stated.
“This will generate mutual prosperity for the peoples of the two continents,” the President said in an address at the Africa Day 2024 Summit, in Vienna, Austria. The continent, he noted, must shrug itself off the existing practice where it had been largely dependent on the production and export of raw materials, without any meaningful value-addition processes.
In 2021, 68 per cent of goods exported from the European Union (EU) to Africa were manufactured goods, while 65 per cent of goods imported to the EU from Africa were primary goods (food and drink, raw materials and energy), the World Trade Organisation has estimated.
Record IDA Replenishment Essential as Debt Crisis Looms (World Bank)
Low-income countries face a sweeping debt crisis, making it all the more urgent for the IDA21 replenishment to be the largest ever. Ballooning debt payments are pulling scarce resources from development priorities, the International Debt Report 2023 highlights. A robust International Development Association (IDA) – which provides zero to low-interest loans and grants to world’s poorest countries - will be fundamental for many poor countries to invest in their people and the environment and to prevent the loss of hard-won development gains.
“The poorest countries need help, and they need it now,” said Haishan Fu, Chief Statistician of the World Bank and Director of the World Bank’s Development Data Group.
The scale of the problem is stark. In just the past three years, there were 18 sovereign defaults in 10 low- and middle-income countries— more than over the previous two decades. Today, about 60 percent of low-income countries are at high risk of debt distress or already in it. The problem is compounded by the weak growth seen in many of the poorest countries over the past decade. From 2012 through 2022, IDA-eligible countries increased their external debt by 134%, far beyond the 53% increase in their Gross National Income.
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SA sends first shipment under AfCFTA agreement (SAnews)
The implementation of the preferential trading under the African Continental Free Trade Area (AfCFTA) has become a reality with South Africa sending its first shipment of products to other countries trading under the agreement. South Africa is the first among the Southern African Customs Union (SACU) member states, which consists of Botswana, Lesotho, Namibia, South Africa, and Swaziland, to practically realise the AfCFTA Agreement.
“For South Africa, as with many other African countries, the start of preferential trade will create great opportunities for growth and development. Not only will it benefit our country’s producers, but it will also see a huge increase in traffic through our ports, our airports and our land-based border posts.
“The products made in Gauteng, Limpopo, North West, Free State, Mpumalanga and the Northern Cape will flow through these ports to markets beyond our borders,” President Cyril Ramaphosa said on Wednesday in Durban.
“African countries trade with the rest of the world but we have limited trade among ourselves. The reason for this is clear: we are principally exporters of raw materials, selling rocks and black liquid to the world, instead of harnessing our oil and the minerals to industrialise our continent. We need to change this. “We have a unique opportunity to lift millions of people out of poverty by empowering women and young people to change the continent’s business environment. That is why, as the South African government, we are focused on implementing our Freight Logistics Roadmap to improve the efficiency and competitiveness of the country’s rail lines and ports,” the President said.
Ramaphosa launches SA’s first AfCFTA trade shipments in Durban (SABC News)
South Africa: Merchandise imports and exports dropped sharply at end of 2023 (The Citizen)
Merchandise imports and exports dropped sharply at the end of 2023 thanks to high oil prices, diminished commodity export receipts and increased congestion at South Africa’s ports. The country’s cumulative merchandise trade surplus for 2023 decreased to R61.0 billion from R192.0 billion in 2022.
According to Sars, the value of merchandise imports as well as exports fell sharply at the end of 2023. The latest trade statistics show that goods imports dropped by 9.0% in December compared to November to reach R149.9 billion, while exports slumped 11.5%. In the end, South Africa had a preliminary trade surplus of R14.1 billion at the end of 2023, compared to a downwardly revised merchandise trade surplus of R20.6 billion in November.
In terms of trade partners, South Africa logged a R28.7 billion merchandise trade surplus in relation to the African continent during December, while recording a R1.2 billion trade deficit with Europe. At the same time, South Africa registered a trade shortfall of R18.5 billion with Asia.
South Africa’s Gaza stance threatens trade ties with Israel (Semafor)
Israeli companies have canceled the importation of grapes from South Africa, according to three people with direct knowledge. It is prompting fears the African nation’s businesses may face a broader boycott due to Pretoria’s stance over the conflict in Gaza. South Africa took Israel to the UN’s International Court of Justice (ICJ) earlier this month over accusations that Israel is committing genocide against Palestinians. The court subsequently ordered Israel to do all it could to prevent acts of genocide in Gaza.
The Congress of South African Trade Unions (COSATU), South Africa’s biggest trade union group, called on the country’s government to protect its workforce from the impact of any trade dispute with Israel. “We need to ensure no South African worker loses their job,” said its spokesman, Matthew Parks, while also calling for the international community to impose sanctions on Israel. It was important that South Africa’s trade department and other official bodies “provide support and assistance” to any company which “faces a boycott from Israel,” he told Semafor Africa.
Namibia and Botswana should ease current restrictions on SA vegetables – Agbiz (IOL)
Agricultural Business Chamber’s (Agbiz) chief economist, Wandile Sihlobo, said yesterday that South Africa should send a firm message to neighbouring Namibia and Botswana about its interest in maintaining smooth trade within the Southern African Customs Union (Sacu) and that these countries should ease the current restrictions on vegetables.
“If there are attempts to revive their domestic vegetable industries, such should be communicated clearly to South Africa, as an affected partner, with clear time frames of these bans. Such information would be valuable in assisting the South African industry and government to plant appropriately for export markets to other regions when the ban is in place,” Sihlobo said.
Closing South Africa’s Sustainable Development Goals (SDGs) gap will require significant infrastructure and related spending, informed by the right objectives and relevant metrics, according to a joint study by the World Bank and the Development Bank of Southern Africa (DBSA), launched today. The report, entitled: Going Beyond the Infrastructure Funding Gap - A South African Perspective, quantifies the spending needed in education, transport, and water and sanitation to achieve the related SDGs.
According to the study, South Africa needs to spend between R4.8 trillion and R6.2 trillion ($254 billion to $329 billion) on transport, water and sanitation, basic education, and Technical and Vocational Education and Training (TVET) between the years 2022 and 2030, to close the SDGs gap in these sectors. The figures for the infrastructure spending are equivalent to spending between 8.7% and 11.2% of Gross Domestic Product (GDP) per year on average. The study asserts that the solution is not always to spend more, but to spend better on the right objectives, with the use of relevant metrics.
Concern as South Africa hits lowest corruption perception index score ever (IOL)
South Africa is losing the fight against corruption as it continues to slide downward among countries perceived to have serious challenges with public sector corruption, the 2023 Corruption Perceptions Index report shows. The report, which relies on the expert opinion of business people, experts, think tanks, risk companies, and global data sets, shows SA scored 41 out of 100, the lowest score since Corruption Watch started tracking the country’s public sector corruption index 12 years ago. The CPI was released on Tuesday by Transparency International, a global anti-corruption movement, in which South Africa scored 41, a two point drop from last year’s score of 43, which showed the country was moving in the wrong direction.
Egypt’s Accession to BRICS Group Leads to Activation of Preferential Trade Agreement with South Africa (asumetech)
Egyptian media reported that Egypt had reaped the first fruits of joining the BRICS group after South Africa announced the activation of preferential trade within the free trade agreement with Egypt. This matter adds a new chapter of economic cooperation and opens the door to enhancing the volume of trade between Egypt and South Africa, which witnesses great opportunities for cooperation, especially with Egypt’s accession to the BRICS countries this year.
Referring to the official figures, data from the Central Agency for Public Mobilization and Statistics monitored the development of the volume of trade exchange between Egypt and South Africa, reaching about 217.1 million dollars by the end of 2021, compared to 158.5 million dollars during the year 2020, an increase of 58.6 million dollars, with an increase rate of 37%. Distributed among Egyptian exports to South Africa worth $128.9 million during the year 2021 compared to $75.2 million during the year 2020, an increase amounting to $53.7 million, an increase of 71.5%, while the value of Egyptian imports from South Africa recorded about $88.2 million during the year 2021 compared to $83.3 million during the year 2020, an increase of about $4.9 million, an increase of 5.8%.
Goods, services imports fall (Tanzania Daily News)
The imports of goods and services decreased to 16,222.2 million US dollars in the year ending last November compared with 16,315.3 million US dollars in the corresponding period a year before ensuing from a fall in goods import bill largely white petroleum products.
The Bank of Tanzania (BoT) monthly economic review for December last year shows that imports of machinery, industrial transport equipment motor cars and food and beverages for industrial use increased, while that of refined white petroleum products fell by 14.5 per cent to 2,799.7 million US dollars on account of price effect.
Services payments slightly increased to 2,396.7 million US dollars from 2,385.4 million US dollars in the year to November 2022, due to a rise in transportation and travel services.
Safaricom triples M-Pesa users in Ethiopia to 3.1m (Business Daily)
The number of M-Pesa users enrolled by Safaricom’s Ethiopia unit has nearly tripled in four months to 3.1 million with Sh18.5 billion worth of transactions, offering hope for success in the populous country. The latest quarterly update showed that Safaricom Telecommunications Ethiopia closed in December 2023 with 3.1 million M-Pesa users. Safaricom’s Ethiopia subsidiary launched the mobile money service on August 15 last year.
“We are very pleased with the optimism that M-Pesa has evoked in the youthful population of Ethiopia, and we look forward with great excitement to the transformation M-Pesa will bring to financial inclusion in Ethiopia,” said Safaricom chief executive Peter Ndegwa.
At 3.1 million, Safaricom’s subsidiary in Ethiopia has nearly tripled its mobile money customer base given that it had 1.2 million users at the end of September. The increased usage has also seen the value of transactions rise over six times to Sh18.5 billion from Sh3 billion at the close of September.
Tax exemptions, incentives rob Kenya of growth in revenues (The East African)
According to an analysis of the tax policy and administrative changes in East African Community countries by the International Monetary Fund (IMF), Kenya’s tax-to-GDP ratio has been falling since peaking in 2014. The IMF analysis tracked tax policy and administrative changes between 1988 and 2022, revealing the bulk of changes undertaken in Kenya resulted in a reduction of taxes payable.
“While in all the EAC countries except Rwanda and Uganda, tax changes primarily consisted of base changes, in Kenya base-narrowing measures were announced more frequently than measures to strengthen administrative practices. Kenya was also the only country in the sample where the frequency of tax policy changes introducing a reduction in taxpayers’ liabilities exceeded 60 percent of total tax policy changes,” the IMF said.
“Kenya needs to strengthen tax collection consistent with the authorities’ objectives of sustained increase in tax revenues to meet their development agenda. In this regard, a key milestone is the timely adoption of Kenya’s first MTRS which aims to increase revenues by five percentage points of GDP by FY2026/27 through measures that broaden the tax base and strengthen tax compliance,” the IMF added.
AfDB wants Kenya, Tanzania electricity deals finalised (The East African)
The African Development Bank (AfDB) wants Kenya and Tanzania to speed up the signing of three key agreements to pave the way for the exchange of excess electricity between the two countries via a Ksh43 billion ($309.26 million) line. The three are a wheeling agreement between Tanzania Electric Supply Company (Tanesco) and Kenya Electricity Transmission Company Limited, a power exchange deal between Kenya Power and Tanesco and a tripartite deal for the maintenance of the interconnected grid.
AfDB— a major financier of the project— in its latest review said that the three deals are key to rolling out the regional power trade meant to boost electricity supply and cut reliance on the dirty and costly thermal power in the two countries.
The Memorandum of Understanding (MOU) signed between Ethiopia and Somaliland has far-reaching benefits for the region beyond the signatories and manifests Ethiopia’s continued commitment towards regional economic integration, Ethiopian Ambassadors to Canada, US, and China said.
Ethiopia’s Ambassador to Canada, Fitsum Arega said that “the MoU between Ethiopia and Somaliland is a continuation of efforts that we had started decades back to integrate with the region and mutually benefit. So, the MoU is historic and Ethiopia’s economy is growing and we would like to have more access sea ports.” Through bilateral and multilateral discussions, Ethiopia will pursue for what has already started, he emphasized.
“Ethiopia will continue to have more sea ports access like Djibouti port, Berbera port and even Lamu port in Kenya and other ports within the Red Sea. Ethiopia will continue to network through infrastructure as well as ports. So, it is for the benefit of the entire region to grow together,” Ambassador Fitsum underscored.
Ama Dokua advocates women empowerment at AfCFTA Durban meeting (Asaase Radio)
Ghana’s deputy minister of trade and industry Ama Dokua Asiamah-Adjei has stressed the significance of adopting protocols related to women and youth in trade, as well as digital trade, in the effort to generate employment opportunities in Africa. Speaking at the 13th AfCFTA Council of Ministers Meeting in Durban, South Africa, Asiamah-Adjei said, “Ghana believes that these protocols, when adopted, will empower women and youth entrepreneurs, create skillful and meaningful job opportunities, and enhance overall economic goals and development across Africa.”
Uganda Women can lead in the realisation of intra-Africa trade (UNDP)
The United Nations Development Programme (UNDP) hosted a Women Leaders’ Dialogue to explore how women and women-led enterprises can best utilize opportunities within the African Continental Free Trade Area (AfCFTA) and how women’s leadership can help to address development challenges in sectors of strategic interest to Uganda. UNDP Regional Bureau for Africa Strategy Advisor Dr. Joy Kategekwa led a discussion on the AfCFTA, encouraging reflections on the role of women in trade and strategies to elevate women’s participation and integration within the One African Market.
EAC lawmakers meet to resolve Kenya, Tanzania frequent trade disputes (People Daily)
Members of the East African Legislative Assembly (EALA) have set up camp at the Namanga One-Stop-Border Point (OSBP) in a concerted effort to address trade disputes between Kenya and Tanzania. The MPs are engaging with traders, cross-border business community and government officials to assess the current and emerging challenges affecting business at this bustling border point.
Kanini Kega, who represents Kenya at the EALA and is leading the 11-member special committee, emphasised their commitment to promote seamless trade, fostering unity among member states, and improving communication on new policies to prevent diplomatic conflicts.
“We have witnessed numerous diplomatic disputes at this border point. These conflicts have a detrimental impact on businesses, resulting in multimillion-dollar losses, especially for perishable goods,” Kega said. Agricultural produce, the EALA member said, is particularly affected due to its short shelf life. We are seeking to engage all relevant government stakeholders to ensure smooth trade moving forward. However, Kenyan traders have raised concerns about the challenges imposed by Tanzanian authorities, affecting business at the border point.
The Fund for Export Development in Africa (FEDA), the development impact-focused subsidiary of the African Export-Import Bank (Afreximbank), has announced that the Republic of Equatorial Guinea and the Republic of Ghana have recently signed the FEDA Establishment Agreement. This important milestone is the result of several months of cooperation between Afreximbank, FEDA and government officials in Equatorial Guinea and Ghana.
As Afreximbank member states, Equatorial Guinea and Ghana have taken another step towards closer collaborations with FEDA by signing the FEDA Establishment Agreement. This milestone marks the countries’ support for Afreximbank’s efforts to extend FEDA’s impact investing objectives across the continent. New memberships are crucial to broaden the scope of FEDA’s interventions and its mission of delivering long-term capital to African economies with a focus on industrialization, intra-African trade and value-added exports.
The decision by Burkina Faso, Mali, and Niger to withdraw from the Economic Community of West African States (ECOWAS) opens a new chapter in a relationship that their citizens have generally seen in a favourable light in the past.
Afrobarometer surveys conducted in 2019/2021 showed that citizens in the three countries held largely favourable views of ECOWAS, rating its economic and political influence more positively than that of the African Union. The perceived positive influence of ECOWAS was equally widespread across all age groups and rural/urban locations, and increased with citizens’ level of education and economic affluence. But the three West African nations announced this week that they were withdrawing from the regional economic community, complaining of a lack of support and “inhumane” sanctions in the wake of the countries’ military coups.
The surveys were conducted in 2019/2021, before mounting tensions in the region in the wake of recent coups d’état and the imposition of sanctions by ECOWAS and the West African Economic and Monetary Union (UEMOA). Afrobarometer’s 2022 survey in Mali found that while most citizens did not see themselves as the primary beneficiaries of ECOWAS/UEMOA sanctions, only a minority expected the sanctions to lead to the country’s withdrawal from ECOWAS.
Well-Developed Africa Mutually Beneficial To Europe, Rest Of The World (The Presidency, Republic of Ghana)
The President of the Republic, Nana Addo Dankwa Akufo-Addo, has called on world leaders to recognize that the increasing levels of inter-dependency amongst the comity of nations translates into shared destinies, whether good or bad, across the globe.
Speaking at the annual Africa Day event, on Tuesday, 30th January, 2024, Vienna, Austria, President Akufo-Addo told the gathering of global leaders that, he believes a well-developed and prosperous Africa would be good, not just for us Africa, but also for you, here in Austria and Europe.”
Citing antecedents of equitable balance of wealth, he alluded to the lessons of history that has shown that “a rich trading partner, operating within a fair, trading system, brings prosperity to both sides, far more than the exploitation of a poor partner,” he said.
Emphasising on the reasons for a fair and mutually beneficial trading system, he said, “the continent is in possession of thirty percent of the earth’s remaining mineral resources, and two-thirds of the earth’s arable land.” However, he bemoaned the age-long practice where Africa has been largely dependent on the production and export of raw materials, without any meaningful value-addition processes.
More Than A Goldmine: Trade Partners Must Prioritise Sustainability In The Global Race For Africa’s Rare Earth Metals (The Organization for World Peace)
With developed global economies pushing for ever more digitisation, technological innovation and energy sustainability, there is one commodity for which demand has increased exponentially: rare earth metals (REMs). These raw materials are an indispensable component in the production of high-tech and low-carbon products that are essential to the growth that the US, UK and EU countries in particular are aiming for.
But with the major producer and refiner of REMs, China, witnessing a rise in tensions and rivalry with its western buyers over the last few years, the global technology supply chain appears worryingly precarious. The answer, according to US and European leaders, seems to be a swivel to the global south and with Africa’s emerging rare earth metals market.
MTN reiterates its position to be a ‘force for good’ for Africa’s growth and prosperity (MTN)
MTN has reiterated its commitment to Africa’s progress at the Africa Prosperity Dialogues, recently held at Peduase, in Accra, Ghana. The program, organised by the Africa Prosperity Network, was designed to drive Africa’s growth through high-level dialogues between government and business leaders from Africa and beyond to deliberate and exchange ideas on key issues and solutions for building and harnessing Africa’s growth.
Ebenezer Asante, MTN Group Senior Vice President, Markets, encouraged industry players as well as government officials from across Africa to support cross-border trade by putting an end to what he called the “tyranny of sovereignty”. He applauded the government of Ghana’s decision to facilitate visa-free travel for Africans and bemoaned the challenges Africans face in making cross-border payments and transactions.
He said, “The tyranny of sovereignty must end to allow proper trade and ease of doing business across West Africa. Technology continues to transform the way we trade, and we must leverage the immense opportunities it presents to trade within our borders. The tyranny of sovereignty is an impediment to progress because with our borders closed to each other, we cannot foster seamless trade. African countries must open their borders to each other to allow intercontinental trade.”
African Development Bank reports on Comoros, Democratic Republic of Congo, South Sudan, and Seychelles show advances in addressing gender discrimination – despite uneven rates of progress – and provide new data to help develop policies to accelerate gender equality. The African Development Bank Group’s Country Gender Profiles assess the state of gender equality in each country and provide concrete recommendations on actions.
“We can only improve what we know, and what we know is what we measure. The data we see through country gender profiles are a critical development tool to improve the design, implementation, and tracking of policy and actions based on evidence,” said Basil Jones, the Bank’s Lead Gender Program and Policy Coordinator.
Despite progress, the profiles show that poverty disproportionately affects women. The COVID-19 pandemic, coupled with the impact of global crises, particularly on food security, have worsened gender inequalities - especially gender-based violence.
Nairobi to host 2nd Canada-Africa Business Conference (The Exchange Africa)
Nairobi will host the second Canada-Africa Business Conference slated for February 2024, as the North American country looks to increase its grip on regional investments. The Canada-Africa Chamber of Business announced that the annual gathering slated for the 19th to 20th of February 2024 in Nairobi, will be inaugurated by Kenyan President William Ruto and will seek to foster bilateral trade relations and investment opportunities between Africa and Canada.
The conference will serve as a platform for government officials, business leaders, and entrepreneurs from both nations to engage in constructive dialogue, explore potential collaborations, and showcase innovations across various sectors. Program Chair for the event Deepak Dave said that the Canada-Africa Business Conference signifies an opportunity for stakeholders to explore avenues for investment, further solidifying the bonds between Canada and Africa.
Italy announces $6 billion plan to strengthen partnership with Africa at Italy-Africa Summit (AfDB)
The government of Italy unveiled a near US$6 billion plan to support African development at a one-day Italy-Africa summit in Rome on Monday. African Development Bank Group President Dr Akinwumi Adesina joined 25 African leaders and European Union officials at the summit. The summit—which took place as Italy assumes the Presidency of the G7 this month, and a few weeks ahead of the 37th Ordinary Assembly of the African Union in Addis Ababa—was one at which Italian Prime Minister Georgia Meloni called for a new Italian partnership with Africa.
The Italian leader announced various initiatives designed to bolster economic links and create an energy hub for Europe while curbing African emigration to Europe. They included an initial pledge of €5.5 billion (US$5.95 billion) including guarantees. African Union Commission Chairperson Moussa Faki welcomed the pledged support, while noting that prior consultation with the African continent would have been desirable, particularly when the Mattei Plan was being drafted. He said the plan, nonetheless, aligns with Africa’s priorities.
Op/ed: Europe And Africa Forging A New Relationship (Eurasia Review)
Roadmap for trade single windows: UNCTAD helps countries cut red tape, costs and emissions (UNCTAD)
Jamaica’s trade facilitation and paperless trade rating jumped from 50.5% in 2017 to 79.6% in 2023, after rolling out a national electronic single window with UNCTAD’s support. The strategic move in 2020 revolutionized the Caribbean island nation’s trade processes by simplifying, standardizing, automating and coordinating the exchange of regulatory information and documents between traders and government agencies.
The electronic single window trimmed the approval time for import and export permits from three days to just 24 hours, significantly cutting the costs related to storage and demurrage – when goods are not removed from the port or terminal within the allotted free time. It also improved the ease of doing business, helping to boost Jamaica’s imports by 29% and exports by 28% in 2022 compared to 2021.
“An electronic single window for trade is one of the most effective measures to enhance trade facilitation in a country,” says Shamika N. Sirimanne, UNCTAD’s technology and logistics director. “Its potential impact is underscored by its inclusion as an obligation in the WTO Trade Facilitation Agreement.” The system not only simplifies and speeds up trade but also ensures the transparent and uniform application of duties and taxes, generates additional government revenue, helps to combat corruption and ensures compliance with standards for public health and safety.
Gaza: Unprecedented destruction will take tens of billions of dollars and decades to reverse (UNCTAD)
UNCTAD released on 31 January a report on the social and economic deterioration in Gaza since the beginning of the military operation after 7 October 2023. The report quantifies GDP loss, recovery timelines and the enduring effects on poverty and household expenditure, painting a daunting picture of the development challenges ahead.
Utilizing innovative satellite imagery and official data, UNCTAD estimates that Gaza’s economy had already contracted by 4.5% in the first three quarters of 2023. However, the military operation greatly accelerated this decline, resulting in a 24% contraction of GDP and a 26.1% drop in GDP per capita for the entire year. If the current military operation were to end immediately with reconstruction starting right away and the 2007-2022 growth trends were to persist with an average growth rate of 0.4%, it would take Gaza until 2092 just to restore the GDP levels of 2022, with GDP per capita and socioeconomic conditions continuously declining. However, even with the most optimistic scenario that GDP could grow at 10% annually, it would still take Gaza’s GDP per capita until 2035 to return to its pre-blockade level of 2006.
The recovery of Gaza’s economy from the current military operation will demand a financial commitment several times more than the $3.9 billion that resulted from the 2014 military operation in Gaza and will require a concerted international effort to restore pre-conflict socioeconomic conditions.
WTO reform among Brazil’s priorities at G20 (Agência Brasil)
During its inaugural technical meeting this week, the G20 Trade and Investment Working Group unveiled the priority issues outlined for the sector under Brazil’s rotating presidency of the G20, a forum that encompasses the world’s 19 largest economies, alongside the African Union and the European Union.
The meeting with representatives of the G20 member countries was conducted via videoconference and concluded on Tuesday morning (Jan. 30). Brazil highlighted four priorities: developing trade policies related to sustainable development in environmental and social domains; mapping sustainable development clauses in investment agreements; enhancing women’s participation in international trade by identifying their main access barriers; and reforming the World Trade Organization (WTO).
Fish Fund Steering Committee holds inaugural meeting (WTO)
The Steering Committee of the WTO Fisheries Funding Mechanism held its first meeting on 31 January to get ready to provide assistance to developing members and least-developed country members (LDCs) to help them implement the Agreement on Fisheries Subsidies. Deputy Director-General Angela Ellard said it is crucial that the assistance is ready to be provided once the Agreement enters into force.
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Italy-Africa Summit
Italy unveils its plan for the development of Africa (Africanews)
Italian Premier Giorgia Meloni on Monday unveiled Italy’s big development plan for Africa at a summit of the continent’s leaders, aiming to stem the numbers of migrants, diversify sources of energy and forge a new, non-predatory relationship between Europe and Africa.
Meloni declared the summit a successful first step, and top European and United Nations officials said the Italian plan, with an initial endowment of 5.5 billion euros ($5.95 billion), would complement initiatives already under way focusing on climate adaptation and clean energy development in Africa.
Asked at a closing news conference about the lack of consultation with African leaders, Meloni acknowledged she may have “erred” in being too specific in describing pilot projects in her introductory speech. But she said the summit provided African leaders with a preliminary outline of Italy’s philosophy backed by concrete examples, that will be brought forward in a shared partnership. The plan involves pilot projects in areas such as education, health care, water, sanitation, agriculture and energy infrastructure.
President Meloni’s opening address at the Italia-Africa Summit (Italian Government)
In this room, we are acutely aware of the challenges the world faces, each complex, but also deeply interconnected. New and renewed conflicts are causing widespread human suffering and deepening divisions, precisely at a time when global collaboration and unity are of paramount importance. The high cost of living, fiscal strain, and migration are undermining international solidarity, while the severe and escalating impacts of climate change are affecting us all.
Energy is intricately connected to these global challenges, serving as both a source of difficulties and potential solutions. As we move forward from COP28, we are entering a new era of energy. Collectively, we recognized that transitioning away from fossil fuels and tripling renewables by 2030 is our best bet to stay on a climate-safe path.
The way Africa embraces this challenge will have significant regional and global ramifications. For Kenya and the African continent, the shift towards renewable energy represents a crucial opportunity for our people and economies to access modern energy services, propel industrialization, and transform into a green powerhouse contributing to global decarbonization.
In this era of transformation, the energy trajectories of Europe and Africa are becoming increasingly interwoven. The discussion on energy transition and security has evolved to include the diversification of value chains. The manufacturing of renewable energy technologies, the development of green hydrogen, and the extraction of critical materials are now at the forefront of the energy dialogue. Africa’s abundant renewable resources are key to decarbonizing and diversifying global supply chains. Additionally, the continent’s rich deposits of critical materials, essential for the development of modern technologies, present a unique opportunity for collaboration with Europe.
FAO Director-General outlines five pillars for effective impact in Africa at Italy-Africa Summit (FAO)
Transformation to more efficient, inclusive, resilient and sustainable agrifood systems in Africa can boost average agricultural productivity by two to three times and stimulate rural renovation and development, the Director-General of the Food and Agriculture Organization of the United Nations (FAO) QU Dongyu said today. To unleash Africa’s full potential, the Director-General outlined five key pillars that can provide game-changing solutions to efficient agrifood systems transformation, underpinned by strategic partnerships: 1) targeted investment; 2) creating jobs for youth and women empowerment; 3) collectively addressing the root causes of migration, bringing new hope and new solutions; 4) innovation and skills development, particularly for youth and women; and 5) improving market access and trade.
Speech by H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission (African Union)
Speech by President von der Leyen: Italy-Africa Summit (European Commission)
Deputy Secretary-General Amina J. Mohammed’s Remarks on the Occasion of the Italy-Africa Summit [as prepared for delivery] (United Nations)
Speech by Dr. Akinwumi A. Adesina President, African Development Bank Group (AfDB)
Remarks by Axel van Trotsenburg, World Bank Senior Managing Director (World Bank)
Trade under the new preferences set out in the African Continental Free Trade Agreement (AfCFTA) will be launched by President Cyril Ramaphosa and the Minister of Trade, Industry and Competition of South Africa, Ebrahim Patel on Wednesday 31 January 2024 at Pier 1 in Durban. This follows the publication on Friday 26 January in the Government Gazette of the terms under which South Africa will participate in the new free trade agreement.
Twelve countries, including South Africa, have finalised their legal modalities to enable trade to commence in thousands of products lines, ranging from food and beverages to steel products and equipment, taxis, pharmaceutical and personal care products, chemical products and household goods such as fridges and televisions. The event on Wednesday will include a display of products due to be exported and the witnessing of the first container of goods loaded onto a ship destined for markets covered by the start of trade under the AfCFTA.
South Africa is simultaneously co-hosting a meeting of the Council of African Trade Ministers to consider further measures to strengthen the AfCFTA, on 30-31 January 2024 at the Durban ICC. Approximately 25 trade ministers and officials from about 40 countries are expected to attend.
IMF cuts South Africa’s 2024 growth forecast (Engineering News)
The International Monetary Fund (IMF) downgraded its economic-growth forecasts for South Africa, warning that logistical challenges are constraining activity and acting as a drag on the entire region. Africa’s most-industrialised economy will likely grow a meagre 1% this year, significantly slower than the IMF’s forecast in October, when it saw South Africa’s gross domestic product expanding by 1.8%, the Washington-based lender said Tuesday in an update to its World Economic Outlook.
That’s due chiefly to “all of the disruptions we’ve seen in the energy sector and also the logistics — in transportation, freight and ports in South Africa,” IMF Chief Economist Pierre-Olivier Gourinchas told Jennifer Zabasajja in an interview on Bloomberg Television in Johannesburg. “That needs to be addressed.”
New initiative set to create job opportunities for seafarers (SAnews)
Minister of Transport Sindisiwe Chikunga has announced a new initiative aimed at enhancing maritime employment opportunities for South African seafarers. “This program is not just about creating job opportunities; it is about nurturing a skilled workforce that will competently navigate the challenges and opportunities of the modern maritime world,” Chikunga said on Tuesday in Cape Town.
The Minister said the Seafarer Employment and Development Programme (SEDP) will be launched in the first quarter of the new financial year. It will provide training, mentorship, and job placement assistance to qualifying Seafarers and will serve as an international collaborative maritime research centre to address the ever-evolving needs of the maritime industry.
Food distributor welcomes chicken import rebates but warns of supply chain issues (Engineering News)
The International Trade Administration Commission of South Africa (Itac) confirmed on January 25 that it is lifting punitive tariffs on imported chicken in response to the impacts of the Highly Pathogenic Avian Influenza (HPAI), also known as bird flu, which has ”ravaged” global and local poultry supplies.
South African food distributor Hume International logistics and operations director Roy Thomas notes that Statistics South Africa’s latest inflation figures reveal that, in 2023, the price of eggs increased by 38%, chicken giblets by 18.3%, fresh chicken portions by 14.6%, whole chicken by 8.4% and individual quick frozen portions by 6.4% – all above average inflation for the year. “These price increases clearly reflect the ongoing impacts of bird flu both locally and abroad, in addition to the effect of new import tariffs implemented in August last year.
“The reality is that while local chicken producers remain hopeful of receiving government approval for a vaccine by the end of February, South Africa does not produce enough chicken to supply local demand. Imports, therefore, serve as an important complement and price regulator in the local market.” He adds that South Africa’s food supply chain is facing various issues, including loadshedding and water shortages, which may contribute to higher prices for consumers.
Saudi Arabia to Import Meat From New BRICS Partner South Africa (Bloomberg)
Saudi Arabia will start importing South African beef and lamb products as part of an investment push into the continent’s most developed economy. The kingdom’s Food and Drug Administration lifted a 20-year prohibition on South African meat imports in August, and final approvals to start shipments of halaal cuts to the Middle Eastern nation are now in place, said Matthew Karan, part-owner of Karan Beef.
Relief as first batch of sugar consignment arrives (Tanzania Daily News)
The first batch of sugar consignment entered into the country yesterday, to cushion the demand and lower the prices of the commodity that is hitting the ceil. The batch being offloaded at the Dar es Salaam Port on board mega JPO Aquarius ship, is part of the 100,000 tonnes that the government approved to sugar producers, to import following acute shortage of the commodity due to what has been described as heavy rains in November and December last year that curtailed local production.
Speaking to journalists while unloading the cargo at the port, the Sugar Board of Tanzania (SBT) Planning, Monitoring and Evaluation Manager, Mr George Gowele said the imported sugar will start flooding the market today after completing all port procedures.
Kenya, US to forge stronger ties in trade partnership (Capital News)
Kenya and the United States on Monday underscored their mutual dedication to strengthening bilateral trade and investment. The focus areas include agriculture, regulatory practices, and the rights and protections of workers. The commitment was highlighted in a meeting where negotiating teams from both countries in the Strategic Trade and Investment Partnership gathered to assess the advancement of ongoing talks.
Led by Cabinet Secretary for Investment, Trade, and Industry, Rebecca Miano, and United States Ambassador to Kenya, Meg Whitman, the teams, alongside Prime Cabinet Secretary Musalia Mudavadi, convened to provide updates on the progressing partnership. “Our goal is to foster economic prosperity, ensure security, protect human rights, and uphold democratic principles. The negotiations mark a crucial step towards a more comprehensive and mutually beneficial partnership between our two nations,” Miano said.
Kenya records new high in horticultural exports (Capital Business)
The volume of Kenya’s horticultural exports hit a new high in 2023, boosted by increased shipments of vegetables and fruits, the Central Bank of Kenya (CBK) said Monday. The bank noted in the data released in the Kenyan capital of Nairobi that the country exported 580,648 tonnes of horticultural produce in the first 10 months of 2023, an increase from 572,290 tonnes in the entire 2022.
The economic data indicated that the volume of flower exports has not grown as fast as that of fruits and vegetables as some key destination markets, including Europe and America, battled higher inflation during the period. With Kenya exporting about 12,000 tonnes of flowers every month, the total cut exports for 2023 are expected to stand at about 134,000 tonnes. Horticulture is one of Kenya’s top foreign exchange earners alongside tourism and tea.
Mombasa poultry farmers decry proposed levies on chicken products (Capital Business)
Poultry farmers have raised opposition to a proposal by Mombasa County to impose new levies on chicken products, arguing it will impact their business. Under a new proposal, the devolved unit is planning to slap 5 percent and 10 percent levies and charges on chicken meat, live chickens, and eggs. While the move is aimed at generating revenue for the county, the Poultry Breeders Association of Kenya (PBAK) argues that the taxes will deal a blow to the area’s poultry business.
In opposition, PBAK members stage a demo outside the county government offices. “The poultry industry is already facing challenges such as feed prices and diseases. The imposition of these new levies is a direct threat to our survival,” said Halima Abdala, a poultry farmer and member of the association. “If these charges are implemented, the entire industry will be on the brink of collapse, and people will suffer from a lack of access to affordable, nutritious poultry products.”
Dar, Delhi bilateral trade heads to exponential growth (Tanzania Daily News)
The bilateral trade between Tanzania and India is experiencing exponential growth, positioning Tanzania as India’s third-largest trade partner in Africa by 2023/24. The projected trade volume between these historically connected nations is expected to reach 6.5 US billion dollars (around 15tri/-) in 2023/24, up from 4.5 billion US dollars in 2022/2023.
The Indian High Commissioner to Tanzania, Mr Manoj Verma, emphasised this development during the celebration of India’s 75th anniversary of independence in Dar es Salaam, where he led the Indian Diasporas. He stated, “There have been significant achievements in the India-Tanzania bilateral relationship. Our bilateral relations were upgraded to a strategic partnership during President Dr Samia Suluhu Hassan’s state visit to India in October 2023.”
Ship-owners challenge FG over Cabotage, trade policy (Vanguard)
The Nigeria Ship-Owners Association, NISA, has challenged the Federal Government to stop granting waivers to foreign ship owners operating in the Cabotage area to demonstrate its seriousness with developing the local shipping industry. Speaking with Vanguard on the issue, president of NISA, Sola Adewumi, said stoppage of waivers for Cabotage will increase the number of local ships operating within the costal ways; which will in turn grow local capacity in terms of manpower and number of ships.
East Africa trade: Kenya, Tanzania and DRC drivers by 2035 (The Exchange Africa)
Kenya-DRC and Tanzania-DRC Corridors have been identified as the key links that will drive East Africa trade. Within the Southern Africa region, higher integration will drive its share of total intra-Africa exports to a third by 2035. The MENA Region and the Middle East-East Africa corridors will also be substantial.
EAC states: Borrow a leaf from Kenya carbon trading deals (Tanzania Daily News)
The EAC countries are now beginning to tap into carbon trading by calling investors to invest in this new lucrative business. Carbon credit markets enable industrialised nations and businesses to offset their carbon emissions by investing in ecofriendly projects elsewhere.
The compliance market for carbon credit in EAC is regulated by national and international authorities who determine a cap on the amount certain sectors can release into the environment to achieve their Nationally Determined Contributions (NDC) under Article 4 of the Paris Climate Agreement. “What EAC needs to do is to incentivise the private companies to continue interventions to offset emissions through Environmental, Social and Governance (ESG) mechanisms,” East Africa Business Council (EABC), Policy, Standards and NTBs Manager, Mr Frank Dafa said.
The Kenya Carbon Credit Trading and Benefit Sharing Bill 2023 set a regulatory framework for the trading of CC and sharing of them, establish a CC Trading Benefit Authority to register and regulate carbon trading businesses, and set up a tribunal to mediate disputes in the market. “Kenya is on the world map as a market leader in the carbon space due to its clarity on dealing with some dispute carbon project in and outside the country,” Mr Dafa said.
Junta-led Niger, Mali and Burkina Faso to withdraw from ECOWAS (JURIST)
The junta leaders of Niger, Mali and Burkina Faso released a joint statement Sunday on national television saying they were quitting the Economic Community of West African States (ECOWAS). The joint statement accused ECOWAS of betraying its founding principles, posing a threat to its member states and being influenced by foreign powers. Referring to the sanctions imposed by the ECOWAS on the three West African countries since their military takeovers as “illegal, illegitimate, inhumane and irresponsible,” the junta leaders announced the immediate withdrawal of Burkina Faso, Mali and Niger from ECOWAS.
ECOWAS responded on Sunday that it had not yet received any formal notification of the three countries’ withdrawal and that they remained “important members of the Community.” ECOWAS also stated it will “remain seized with the development” and “make further pronouncements as the situation evolves.”
West Africa’s ‘Brexit’ moment spells trouble for the region (Reuters)
A decision by Mali, Burkina Faso and Niger to quit West Africa’s economic and political bloc reverses decades of regional integration, leaving millions of people in limbo, and is likely to deepen the three junta-led countries’ ties with Russia. The move to withdraw from the 15-member Economic Community of West African States (ECOWAS) could yet take time to implement, opening a door for negotiations.
But, if carried through, it is set to disrupt the region’s trade and services flows, worth nearly $150 billion a year. It also raises questions over millions of nationals from the three poor and landlocked nations who settled in neighbouring states as the bloc allows visa-free travel and right to work.
Ecowas shrinks as coup triumvirate withdraws (Freight News)
Solar Energy Capacity in Africa (Arem Solar)
Solar energy capacity refers to the maximum amount of solar energy that can be generated by a specific system or in a particular location within a given period. This capacity can vary from small residential homes to large commercial industries that are spread throughout the country. In Africa from our findings the main reason residents adopt solar energy energy is due to the un-reliable grid power supply.
South Africa is the largest producer of solar power capacity in the continent at 6,326 MW. They generate 3.7x as much solar power than the Egypt at 1,724 MW. Nigeria is the 16th country in Africa that produces the most solar power.
2023 Ibrahim Index of African Governance (IIAG) report highlights the strong correlation between high-quality data and effective governance (Mo Ibrahim Foundation)
The Mo Ibrahim Foundation (MIF) today launched its IIAG Series 2023 Report, “The Power of Data for Governance: Closing data gaps to accelerate Africa’s transformation,” in Accra. Sound data is at the heart of Africa’s governance and development agendas, and the report underscores its role in driving progress, assessing government performance, setting policy priorities, and ensuring trust in governments. Drawing from the 2022 IIAG dataset, the report reveals a strong positive correlation between access to high-quality statistics and effective governance across African countries from 2012 to 2021.
Intellectual property: A potential game-changer for least developed countries (UNCTAD)
A new report by UNCTAD and the Commonwealth sheds light on a range of tools and options to help LDCs create an enabling environment for IP rights and use them strategically to unlock innovation, boost trade, attract investment and promote technological upgrading. “The essence of our journey is not merely about adopting IP rights, but about revolutionizing the way we perceive and utilize them,” UNCTAD Secretary-General Rebeca Grynspan said on 29 January at an event to launch the report, joined by the heads of the Commonwealth and the UN’s World Intellectual Property Organization (WIPO)
“Not all IP policies will work in all LDCs. But all LDCs can implement successful IP policies,” Ms. Grynspan added. “Innovation — supported by appropriately targeted IP protection — can be a powerful catalyst and enabler for strengthening the productive capacities of LDCs and diversifying their economies and exports,” said Commonwealth Secretary-General Patricia Scotland.
Plastics Pollution Dialogue finalizes text for MC13 Ministerial Statement (WTO)
At a meeting of the Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade on 26 January, the 76 co-sponsors of the talks celebrated the work completed over the past year and reached agreement on the ministerial statement to be issued at the 13th Ministerial Conference (MC13) at the end of February. Participants welcomed the text as “well balanced” and said it will help to achieve “concrete, pragmatic and effective” outcomes at MC13.
Tackling the Plastics Pollution Crisis by Channeling Private Capital to Projects that Reduce Plastic Waste (World Bank)
E-Commerce Takes Centre Stage at World Trade Organization in Run-up to MC13 (IISD)
Trade-related aspects of e-commerce have been discussed at the World Trade Organization (WTO) since 1998, as mandated by MC2’s Declaration on Global Electronic Commerce. The declaration called for a Work Program on Electronic Commerce and for a provisional moratorium on customs duties on electronic transmissions. This moratorium has been extended for around 2 years at every ministerial since then.
Work has indeed ramped up. Eight dedicated discussions were held between January and November 2023, covering a range of development-relevant thematic matters. These include consumer protection, the digital divide, improving the participation of developing economies and least developed countries (LDCs) in e-commerce, regulatory and legal frameworks, customs duties on electronic transmission, digital trade facilitation and electronic transactions, digital industrialization, upskilling, and technology transfer. Members are also engaging by submitting more proposals or communications that recommend future agenda items, facilitate knowledge sharing, and support the thematic discussions.
Global Economy Approaches Soft Landing, but Risks Remain (IMF Blog)
The clouds are beginning to part. The global economy begins the final descent toward a soft landing, with inflation declining steadily and growth holding up. But the pace of expansion remains slow, and turbulence may lie ahead. Global activity proved resilient in the second half of last year, as demand and supply factors supported major economies. On the demand side, stronger private and government spending sustained activity, despite tight monetary conditions. On the supply side, increased labor force participation, mended supply chains and cheaper energy and commodity prices helped, despite renewed geopolitical uncertainties.
This resilience will carry over. Global growth under our baseline forecast will steady at 3.1 percent this year, a 0.2 percentage point upgrade from our October projections, before edging up to 3.2 percent next year. Important divergences remain.
New commodity and supply disruptions could occur, following renewed geopolitical tensions, especially in the Middle East. Shipping costs between Asia and Europe have increased markedly, as Red Sea attacks reroute cargoes around Africa. While disruptions remain limited so far, the situation remains volatile.
Reforms that ease the most binding constraints to economic activity, such as governance, business regulation and external sector reform, can help unleash latent productivity gains, our research shows. Stronger growth could also come from limiting geoeconomic fragmentation by, for instance, removing the trade barriers that are impeding trade flows between different geopolitical blocs, including in low-carbon technology products that are crucially needed by emerging and developing countries.
World Economic Outlook Update, January 2024
Present UNSC does not reflect today’s reality: UNGA President (The Hindu)
U.N. General Assembly President Dennis Francis on January 24 said the existing composition of the U.N. Security Council does not reflect the contemporary geopolitical reality of the world and it needs reform. The Security Council has progressively been unable to take decisions in recent years to strengthen global peace and security, he said at a media briefing shortly after holding talks with External Affairs Minister S. Jaishankar.
The U.N. General Assembly president also hailed India for its role in making the African Union a full member of the G20. “There is no doubt in anyone’s mind that India’s outreach to Africa particularly with regard to its facilitating the membership of the African Union in the G20 demonstrates India’s leadership in the international arena,” Francis said.
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President to officiate launch of SA’s first shipment under AfCFTA (SAnews)
President Cyril Ramaphosa will on Wednesday officiate the launch of South Africa’s first shipment and preferential trading under the African Continental Free Trade Area (AfCFTA). The launch ceremony will take place at the Port of Durban and occurs on the margins of the 13th AfCFTA Council of Ministers meeting to be held at the Inkosi Albert Luthuli International Convention Centre from 30-31 January 2024. South Africa is the first among the four Southern African Customs Union (SACU) countries to practically realise the AfCFTA agreement.
The 37th African Union Ordinary Session of the Assembly of Heads of State and Government will, at its annual convention next month, take stock of the progress made thus far in the implementation of the AfCFTA. The Department of Trade, Industry and Competition said the launch ceremony will be a historic step and an instrumental tool in generating meaningful trade on the African continent through the shipment of made-in-South Africa products. “The main message being sent to Africa and the rest of the world through this event is to illustrate that companies can trade under the AfCFTA procedures to expand their markets within a legally binding framework,” the department said.
Collaboration essential for South African exporters to overcome EU carbon border tax (Engineering News)
As the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM) became effective from October 1 last year, South Africa remains highly vulnerable and will likely pay high amounts of carbon tax. The first CBAM report for the fourth quarter of 2023 will be published on January 31.
The transition period for CBAM has been set over two years ending in December 2025, following which South African exporters are expected to report accurate greenhouse-gas embedded emissions data to EU importers. Once the transition period ends, exporting firms will have to buy CBAM certificates by paying a carbon tax at the EU border. South Africa is highly dependent on the EU market, with the region accounting for 21% of all South Africa’s exports in 2022.
Import permits for key products scrapped (The Herald)
The Government has scrapped import permits and licenses for fertiliser and other key products, including confectioneries and construction materials. Statutory Instrument 6 of 2024, published in the Government Gazette, removed import permit requirements for several products, including data and network cables, floor polish, batteries, candles, tiles, adhesives and sealants, detergents, biscuits and fertilisers.
Import permits and licenses can often lead to higher prices for consumers. By removing these requirements, this could reduce prices for the listed products, analysts say. It was not immediately clear why the permits and licences had been removed.
“The agricultural, construction, and ICT sectors are all important drivers of economic growth. By making it easier for businesses to import the goods and services they need, the Government could help to boost these sectors and create jobs,” Carlos Tadya, a Harare-based economist told The Herald Finance & Business. While supportive of the overall initiative, some critics cautioned that the removal of permits and licenses could inadvertently increase competition from imported goods, given the existing presence of small businesses in certain product categories.
Kenya oil facilities face huge losses as Uganda shifts to Dar port (The East African)
Kenya has lost $200 million worth of exports to Uganda, its largest regional market, since October 2023, new data shows. And experts warn that it will lose more going forward, as the fight over petroleum products imports escalates, with major oil infrastructure at the risk of underuse.
Last week, Uganda announced that it was moving to Tanzania for oil imports after reaching a dead end in the quest to have its national oil marketer, Uganda National Oil company (Unoc), registered in Kenya to facilitate imports via the Mombasa port. Ugandan Energy Minister of Energy Ruth Nankabirwa told reporters in Kampala on Tuesday that Kenya’s continuous frustration of the Unoc deal is threatening Uganda’s fuel supply stability.
KCB signs deal to promote intra-Africa trade (New Vision)
Kenya Commercial Bank (KCB), which now operates in many African countries including Uganda, has signed an Africa-wide deal to facilitate settlements of cross-border monetary transactions, which will greatly boost trade between African countries. “The agreement brings on board payments and collecting expertise spanning more than 120 years,” said KCG Group CEO Paul Russo. “Rest assured to have speed, affordability, reliability and boost in Africa to Africa trade.”
The agreement was signed early this week with the Pan-African Payment and Settlement System (PAPSS) in Accra in Ghana during the Afrexim Bank Annual Meeting. This makes KCB the pioneer institution in East Africa to bring on board the financial market infrastructure that provides a secure and efficient channel for processing cross-border payments.
Uganda Airlines posts 62% growth in income (Monitor)
“The major cost drivers included aviation fuel, crew allowances, crew salaries and pilot training, and depreciation [of the company’s assets],” Auditor General John Muwanga wrote, listing Uganda Airline among 15 public entities with a declining operating margin from the previous year, which makes it difficult for such corporations to pay their operating and debt expenses. However, details contained in the Auditor General’s report for the period ended June 2023 indicated that the Shs230.4b was at least 46.8 percent lower than the Shs491.8b Uganda Airlines, which trades as Uganda National Airlines Company Limited, had planned to earn in the period.
AfDB introduces new model to help turn Ugandan economy (The Independent Uganda)
Uganda has been selected among five African countries to be supported by the African Development Bank to develop circular economy policies. A circular economy is an economic system based on the reuse and regeneration of products to continue production sustainably, minimizing waste, and increasing the life cycle of products. It differs from the prevailing linear economic model, in which products are manufactured, used up, and disposed of or discarded.
It has been found that when applied as an industrialization strategy, the circular economy has the potential to decouple resource use from economic development to help address key African challenges such as climate change, food security, water scarcity, and natural resources management.
Ghana: Transforming a Crisis into a Journey Toward Prosperity (IMF)
When Ghana requested an IMF-supported program in July 2022, the country was dealing with an economic and financial crisis that was the outcome of preexisting vulnerabilities and substantial external shocks. The authorities have since made compelling progress under the program that was approved by the IMF Board in May 2023.
Two years ago, elevated fiscal deficits and public debt levels, together with the combined effects of the COVID-19 pandemic, Russia’s war in Ukraine, and global monetary policy tightening, triggered a drop in international investor confidence in Ghana, resulting in a loss of international market access. This generated increasing pressures on domestic financing, with the government turning to monetary financing by the central bank, which fed into declining international reserves, currency depreciation, and accelerating inflation.
Now, the Ghanaian economy is showing signs of stabilization thanks to the authorities’ steadfast implementation of its IMF-supported economic program, which aims to restore macroeconomic stability, secure debt sustainability, and lay the foundations for higher and more inclusive growth.
Zambia Validates Blue Economy Strategy (COMESA)
The Government of Zambia has developed and validated the national blue economy strategy which is expected to help increase the prospects for achieving sustainable, environmentally friendly and socially inclusive economic growth. The strategy will guide the nation in advancing knowledge on biotechnology, environmental sustainability and ecosystem services. Other areas targeted include growth of inland water transport industry, management of fishing industry and better use of underwater mineral resources. This was revealed in Lusaka on 16 January 2024 during the validation meeting held at COMESA Secretariat.
Speaking at the opening of the meeting, Director of Agriculture and Industry at COMESA Secretariat Mrs Providence Mavubi commended the country for developing the strategy which she described is an important tool and mechanism for attaining sustainable economic growth. “The validation of the national blue economy strategy hastens the state of play of regional integration and will help development of ways and means of strengthening and deepening mutually beneficial cooperation in the area of blue economy for the benefit of Zambian citizens in particular and COMESA in general.”
UAE firm to develop $5 billion Uganda oil refinery (The Independent Uganda)
Africa Global Logistics deepens presence in Kenya with Naivasha SEZ (The Africa Logistics)
Ethiopia’s Quest for Access to Sea Very Essential to its Survival, Safeguarding Nat’l Interest: MPs (ENA)
Will developing countries benefit from the renewables boom? (UN News)
The technology already exists to bring clean energy to rural communities in developing countries that have previously never had access to any kind of electricity. However, as Moritz Brauchle, managing director of Africa GreenTec Madagascar, explains, these countries will continue to need support to turn their backs on fossil fuels.
Africa GreenTec is a social enterprise which provides sustainable energy solutions to some of the 600 million people in sub-Saharan Africa currently living without any access to electricity. With backing from the UN, the company installs minigrids – stand-alone networks run on renewable energy – to supply people in a small community or town with clean electricity.
China investors eye Africa’s Mauritius as it goes green, tries to sweeten deals (South China Morning Post)
“We want to really encourage investors who are in that particular [green energy] space on how they can come invest in those areas,” Seeruttun told the Post at last week’s Asian Financial Forum in Hong Kong. “Solar energy is one thing that we are promoting, and of course, we need to see – [for] promoters who are interested – how we can facilitate their entry into the market.” The government has said that goal will help it honour an international commitment to help reduce greenhouse gas emissions.
Meanwhile, investors from China are also looking at Mauritius as a gateway to the African market, Seeruttun added. “In the renewable-energy sector, China has gained both a technological edge and a cost advantage, which allow them to export products and technical expertise with little competition from other countries,” Xu said.
Cameroon National Development Strategy receives Afreximbank backing (African Review)
The African Export-Import bank (Afreximbank) has agreed a EU€200mn (approx. US$217mn) financing facility to help the Government of Cameroon implement its National Development Strategy The Government initiative represents a vision for 2030 to establish the country as an emerging country, democratic and united in its diversity. It targets carrying out structural transformation of the economy to promote endogenous, inclusive development while preserving opportunities for future generations.
The main objectives identified by the Government include establishing conditions favourable to economic growth; improving the living conditions of the population; strengthening climate change adaption; enhancing on governance to enhance policy performance towards achieving development goals.
Under the terms of the agreement with Afreximbank, the Government of Cameroon will deploy the facility to implement trade-enabling infrastructure projects that are approved in the country’s financing plan.
TradeMark Africa’s $2m grant to fight trade barriers (The East African)
The Eastern Africa Grain Council (EAGC) has received a $2 million grant from TradeMark Africa to eliminate trade barriers for exporters in three East African countries. The grant is part of a $75 million five-year partnership from the US Agency for International Development’s Economic Recovery and Reform Activity programme delivered by TradeMark Africa but funded by Feed the Future.
“This facility with EAGC will directly tackle these challenges, removing trade impediments and building grain exporters’ capacity in Kenya, Tanzania, and Uganda across export value chains such as maize, beans, millet, sorghum, and rice,” said TradeMark in a statement. The partnership seeks to tap into food grain production and export while creating jobs, especially for women and the youth.
Some of the challenges facing grain exporters are the ability to meet and comply with international standards, low production rates, poor harvest management and climatic factors. “These challenges contribute to the low competitiveness of these staples in regional markets, reduced cross-border trade, production deficits, and postharvest losses that threaten the region’s food security,” added TradeMark. EAGC plans to support over 80 small and medium-sized enterprises to successfully meet sanitary and phytosanitary measures - which regulate the health of animals and plants that are traded; and standards quality requirements that govern quality, health and safety systems, and environmental conservation. It also plans to establish an information hub that will act as a resource centre.
External shocks dim East Africa economic growth prospects (The East African)
The International Monetary Fund (IMF) projects that the East African economy will grow at 5.6 percent, but the region’s business lobby says external and domestic shocks could impact the positive outlook. The East African Business Council (EABC) cites the global economic slowdown, rising commodity prices, high inflation, liquidity, the war in Ukraine, international trade policies, tightening of global financial conditions, and exchange rate depreciation.
“Global dynamics do play a part in our economic growth. When you start seeing double-digit borrowing in Kenya, Tanzania and Uganda, a high cost of liquidity and slow intra-EAC trade, the economy is unlikely to grow as fast as predicted,” said Jas Bedi, EABC vice-chairperson and chairperson of the
The Southern African Development Community (SADC) Secretariat, through its Climate Services Centre (CSC) is convening the 28th Southern African Regional Climate Outlook Forum (SARCOF-28) in Maputo, Mozambique between 29-31 January 2024, to review the impacts of the October-November and December (OND) 2023 rainfall season’s predictions, issue the seasonal outlook for February-March-April (FMA) and March-April-May (MAM) 2024 together with advancing the establishment of Regional Sectoral User Interface Products (RSUIPs).
SARCOF-28 was to review and discuss the impacts of the season’s outlook for February-March-April (FMA) and March-April-May (MAM) 2024 on each sector based on the consensus outlook which will be generated during the pre-SARCOF event of Climate Experts held in Maputo, Mozambique from 22-28 January 2024.
The Climate Experts Meeting (CEM) which is aimed at building capacity of Climate Experts from National Meteorological and Hydrological Services (NMHSs) of the SADC Region would also discuss the status of global climate drivers and their likely impacts on the climate sensitive sectors within the SADC Region. The CEM will generate a Regional seasonal climate outlook for the overlapping three-monthly subseasons for the second half of the rainy season which will form the bedrock of deliberations during SARCOF-28.
ECOWAS Communique on Burkina Faso, Mali & Niger (ECOWAS)
The attention of the Commission of the Economic Community of West African States (ECOWAS Commission) has been drawn to a statement broadcast on the National Televisions of Mali and Niger announcing the decision of Burkina Faso, Mali and Niger to withdraw from ECOWAS. The ECOWAS Commission is yet to receive any direct formal notification from the three Member States about their intention to withdraw from the Community .
The ECOWAS Commission, as directed by the Authority of Heads of State and Government, has been working assiduously with these countries for the restoration of constitutional order. Burkina Faso, Niger, and Mali remain important members of the Community and the Authority remains committed to finding a negotiated solution to the political impasse. The ECOWAS Commission remains seized with the development and shall make further pronouncements as the situation evolves.
APD 2024: PAPSS to roll out African currency trading platform, says Oramah (Asaase Radio)
The Pan-African Payment and Settlement System (PAPSS) will in April this year roll out an African currency trading platform, Professor Benedict Okey Oramah, the president and chairman of the board of directors of the African Export-Import Bank (Afreximbank), has said. PAPSS, which was launched to make cross-border transactions seamless, has brought over 25 commercial banks on to its system since its launch by the African Union and Afreximbank in 2022.
Speaking at the just-ended Africa Prosperity Dialogues in Peduase on Saturday (27 January), Oramah said: “A continent with over 42 different currencies and payment systems cannot trade among itself. That’s why we have collaborated with the AfCFTA and the AU Commission to develop a common payment platform… in order to create a single payment rail for the continent.”
Governments, business leaders pledge value addition for AfCFTA’s success (Ghana News Agency)
African governments and business leaders have made a pledge with a sense of urgency to ensure value addition to raw materials and natural resources for successful intra-continental trade. This commitment was made at the end of the second edition of the Africa Prosperity Dialogues in Aburi in the Eastern Region of Ghana. The three-day summit was organised by the Africa Prosperity Network and the African Continental Free Trade Area (AfCFTA) Secretariat, under the auspices of the government of Ghana. The event ended with the adoption of thirteen strategic policy (Peduase Compact), to be presented by President Nana Addo Dankwa Akufo-Addo to the African Union (AU) for ratification and implementation for AfCFTA’s success.
“Trade between African regions is highly concentrated around primary minerals,” Mr Mohammed Irfaan Ali, Guyana, noted, all called for concerted effort to correct it. “The opportunities are there for a massive increase, but we have to fix the trade barriers, transport and logistics and the rules among ourselves that will stimulate trade among ourselves,” he said.
Ghana calls for adherence to African Mining Vision (Ghana News Agency)
Ghana has drawn the attention of African countries to their obligations under the African Mining Vision, urging renewed commitments to harness the continent’s mineral potential. The Vision enjoins countries on the continent to collaborate and use the exploitation of mineral resources to underpin broad-based sustainable growth and economic development.
“We cannot talk about Africa’s prosperity without talking about her natural resources, which for years have been the fulcrum around which most of our economies revolve,” Mr Samuel Jinapor, Minister of Lands and Natural Resources, noted. He was speaking at a discussion on the topic: “Extracting Greater Value from our Minerals – The Case of Gold and Lithium in Ghana,” at the Africa Prosperity Dialogues (APD) 2024, being held at the Peduase Presidential Lodge, Eastern Region.
Intra-Africa air connectivity up but headwinds remain (Southern & East African Tourism Update)
Intra-Africa air connectivity is making headway, with local aviation experts expressing cautious optimism about the growth prospects for the southern African region, noting that several barriers to improved air access still need to be addressed. This comes after the Centre for Aviation (CAPA) highlighted in its ‘Charting Trends’ report earlier this month that intra-Africa air connectivity had exceeded the two million weekly internal seats figure for the week commencing December 18. This is the sixth time that this landmark figure has been achieved. Previously, there was a consecutive five-week period between the weeks of December 9 and January 6, when a record of 2.04 million was achieved in the week commencing December 16, 2019 (pre-COVID).
“December is a peak travel month in the intra-Africa calendar, and capacity levels will decline over the remainder of Q1 2024, following historical trends. It may be premature to start looking ahead to the end of 2024, but there is potential for 2024 to break the record for intra-Africa connectivity,” the report stated.
The African Development Bank Group and the Consortium of International Agricultural Research Centres (CGIAR) committed on Thursday to strengthen their collaboration to increase food production and provide better nutrition for Africa’s growing population. With 65% of global uncultivated arable land, the African Development Bank believes that the continent can feed itself and the rest of the world.
CGIAR centres are located across African countries and focus on enhancing food and nutrition security, reducing poverty, and improving natural resources and ecosystem services. They are critical to achieving food security on the continent, just as their counterparts in Southeast Asia and Latin America were also key to accelerating agricultural growth and food self-sufficiency.
More trade, bilateral relations between Africa, Caribbean needed for sustainable future - Pres. Ali (News Room Guyana)
President Dr Irfaan Ali on Saturday encouraged more trade and bilateral relations between countries in the African continent and the Caribbean region as part of efforts to progressively develop a sustainable future. The Head-of-State delivered the keynote address at the Presidential Dialogues session, hours after he was bestowed with the Global Africa Leadership Award at the Africa Prosperity Champions Awards and Presidential Gala Dinner on Friday evening in Ghana.
President Dr Irfaan Ali receives the prestigious Global Africa Leadership Award in Accra, Ghana. President Ali was honored for his transformational leadership in Guyana”These are things that we need to fix, the opportunities are there for massive increases in a trade between Africa and the Caribbean…We have to fix the trade barriers, we have to fix the issues of transport and logistics. We have to fix the rules between ourselves that will help stimulate trade and advance trade between our countries,” President Ali said.
On the sidelines of last week’s Italy-Africa Summit, the European Commission (EC) and the African Development Bank Group have formalised a new Financial Framework Partnership Agreement to boost investments in infrastructure projects in Africa. The European Union’s contribution to co-finance operations with the African Development Bank has significantly increased over the last two years, now amounting to €972 million in blending operations and guarantees. This figure will further increase after the signing of the new Financial Framework Partnership Agreement.
This landmark agreement renews the partnership between the two organisations. It opens a wide range of opportunities for both organisations to deliver new joint financing for infrastructure projects. For the EU, this would be in keeping with the priorities of the Global Gateway, its strategy to deliver sustainable and trusted connections with partner countries. Between 2021 and 2027, through the Africa-EU Global Gateway Investment Package, the EU will support the African continent with €150 billion worth of investments.
G77 summit: UNCTAD chief highlights systemic inequalities hindering developing countries (UNCTAD)
UNCTAD Secretary-General Rebeca Grynspan underscored on 21 January at the Group of 77 and China’s Third South Summit the systemic inequalities that hinder developing countries’ efforts to achieve sustainable development. In her statement to the summit in Kampala, Uganda, Ms. Grynspan highlighted that despite now accounting for 86% of the world population, about 58% of global economic output, in terms of purchasing power parity, and almost half of world merchandise exports, these nations remain underrepresented in key international institutions.
The UNCTAD chief said systemic inequalities materialized in the uneven distribution of resources like vaccines and finance during the COVID-19 pandemic, which hindered developing countries’ responses to the crisis. Similarly, these nations are least responsible for climate change yet bear the heaviest costs.
Members make progress on trade and environmental sustainability outcomes for MC13 (WTO)
WTO members taking part in the Trade and Environmental Sustainability Structured Discussions (TESSD) on 25 January considered further refinements to the group’s package of outcomes to be launched at the 13th Ministerial Conference (MC13) next month. The package reflects the progress made since MC12 and charts the way forward towards identifying possible concrete actions for trade policy to support environmental sustainability. Members also welcomed Peru as the newest participant in TESSD, which now includes 76 WTO members as co-sponsors.
Members updated on progress in dispute settlement reform talks in run-up to MC13 (WTO)
WTO members were briefed on the latest developments in ongoing informal discussions on dispute settlement reform and work plans for talks in the coming weeks at a meeting of the Dispute Settlement Body (DSB) on 26 January. Members were mandated at the WTO’s 12th Ministerial Conference to conduct discussions, with the view to having a fully functioning dispute settlement system accessible to all members by 2024.
Cabo Verde formally accepts Agreement on Fisheries Subsidies (WTO)
Joint World Bank, EU, UN Report Assesses Damages Caused by Catastrophic Flooding in Libya (World Bank)
How Distrust of Government by Marginalized People Fuels Conflict in Africa (IMF)
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Whiskey dispute hits new EU-Kenya trade pact (EUobserver)
Kenya faces s dispute with the EU on whiskey imports just weeks after its tortuously agreed trade pact with Brussels came operationally into effect. Even though the trade pact has not officially been ratified by the EU, Kenya is already breaking its terms by applying higher tariffs on certain products in order not to breach the East African Community’s (EAC) Common External Tariff.
Ghana: 2023 Article IV Consultation (IMF)
Large external shocks in recent years exacerbated pre-existing fiscal and debt vulnerabilities, resulting in an acute crisis in 2022. In response, the authorities have adjusted macroeconomic policies, made significant progress on a comprehensive debt restructuring, and launched wide-ranging reforms. These efforts are bearing fruit, and signs of economic stabilization are emerging. Growth in 2023 has proven resilient, inflation has declined, and the fiscal and external positions have improved. Nonetheless, fully and durably restoring macroeconomic stability and debt sustainability and fostering a sustainable increase in economic growth and poverty reduction will require steadfast policy and reform implementation.
Ghana eyes auto assembly plant in Tanzania (The Citizen)
Ghana is considering establishing an automobile assembly plant in Tanzania in a move to strengthen trade with East Africa. The plans under the African Continental Free Trade Area (AfCFTA) agreement are to convince Kantanka Automobile Company Limited to set up the car assembly plant, Ghana’s Ministry of Trade and Industry chief commercial officer, Mr Kofi Addo, told The Citizen yesterday.
“The good thing is that Kantaka is a Ghanaian assembly plant that makes cars or vehicles based on the African environment. They understand the African interest, and that is why it is good for us to talk and engage them to be here in Tanzania,” said Mr Addo.
Mr Addo was speaking during the official opening of a five-day Ghana Expo 2024 themed “Acceleration of Implementation of the AfCFTA Enhancing Ghana-Tanzania Relations.”
Ghana to grant visa-free entry to all Africans by 2024, President Akufo-Addo announces (Yabiladi)
President Nana Addo Dankwa Akufo-Addo of Ghana unveiled plans to abolish visa requirements for all African visitors by the end of 2024. Unveiling the policy at the Africa Prosperity Dialogue 2024 in Ghana’s Eastern Region, Akufo-Addo linked the move to the goals of the African Continental Free Trade Area (AfCFTA).
“The Government of Ghana is committed to ensuring visa-free entry for all Africans traveling to our country,” declared Akufo-Addo. He emphasized the need for similar policies across the continent to facilitate the free movement of people, goods, and services, ultimately leveraging trade as a driver of economic transformation in Africa.
Beyond visa liberalization, Akufo-Addo also championed a more inclusive AfCFTA implementation, advocating for measures that benefit various social strata in Africa.
The Board of Directors of the African Development Bank Group (AfDB Group) met on 17 January 2024 in Abidjan and approved the 2023-2028 Country Strategy Paper (CSP) for the Democratic Republic of Congo (DRC). The CSP aims to reduce fragility through inclusive and sustainable structural transformation driven by industrialization and job creation for women and men.
To achieve these goals, the new CSP identifies two priorities. The first is the installation of sustainable infrastructure to support agricultural and industrial value chains, and the second is to improve the quality of human capital and the business climate to support social inclusion and private sector growth in the DRC.
EAC Health Ministers adopt a Regional Policy Framework for the supply and production of antibiotics (EAC)
EAC Ministers in charge of Health have endorsed a regional policy framework aimed at promoting antibiotics production and a collaborative mechanism for information exchange in the production and supply of antibiotics across the region.
The 44th EAC Ordinary Council of Ministers endorsed this framework following multistakeholder consultations at the national and regional level as well as sensitization meetings with senior officials including Permanent Secretaries of Ministries responsible for health and industry. The project engaged over 300 stakeholders from both public and private sectors across the region.
This significant development came to light during a closeout meeting of the EAC-UNCTAD project, “Investment Incentives for Local Production of Essential Antibiotics in East Africa,” held in Nairobi in December 2023. The meeting, attended by representatives from the EAC and its Partner States, UNCTAD, GIZ, and GFA Consulting Group, provided a platform to unveil the Council’s approval of these essential policy documents.
SADC launches the Regional Customs-Business Forum (SADC)
The Southern African Development Community (SADC) Secretariat officially launched the Regional Customs to Business Forum (RCBF) in Johannesburg, South Africa on 19th January 2024.The SADC Regional Customs to Business Forum is a significant vehicle of the SADC region that seeks to foster trade partnership based on mutual trust and inclusive participation of the private sector in policy formulation and application, implementation of innovative trade facilitation measures and harnessing of collective solutions to the ever-increasing challenges of managing the cross-border supply chain.
In his official address at the launch, Mr. Rakokoana Makoa, Commissioner Client Services of the Revenue Services Lesotho, emphasised the need for the Forum to provide conducive and constructive dialogue between the private sector and customs in furtherance of trade facilitation in the SADC region.
The key objective of the RCBF is to harness policy advocacy opportunities for Customs to Business (C2B) that expedite implementation of regional trade agreements and trade facilitation initiatives which support smooth movement of goods across borders within the SADC Region. The Forum is mandated to inform, advise, identify, discuss, and present options for addressing identified impediments to the flow of goods across borders in the SADC Region.
Delay on tariff offers to affect AfCFTA implementation (The Citizen)
Full implementation of the African Continental Free Trade Area (AfCFTA) could be delayed further due to the failure of some countries to act decisively on its key pillars. Several state parties to the agreement are yet to finalise matters about the tariff offers and rules of origin. Others have been reluctant to swiftly work on equally important dispute resolution issues, intellectual property rights and services.
“To enable meaningful and real trade, tariffs need to be tackled between the partner states,” said Ms Elizabeth Thande, the chairperson of the East African Women-in-Business Platform (EAWiBP). She was speaking in Nairobi during a capacity-building workshop for women entrepreneurs from the East African Community (EAC) region. AfCFTA, which came into force in January 2021, she said, provides for reduced and/or elimination of trade barriers, both tariff and non-tariff.
African leaders gather in Durban to highlight AfCFTA benefits (Freight News)
The South African government and the African Continental Free Trade Agreement (AfCFTA) Secretariat will host the 13th AfCFTA Council of Ministers meeting in Durban next week. The opening ceremony of the AfCFTA Council of Ministers (COM) Responsible for Trade Meeting will take place on Tuesday, followed by South Africa’s launch to commence Preferential trade under the AfCFTA Guided Trade Initiative (GTI).
Participants will include secretary-general of African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, Minister of Trade, Industry and Competition of South Africa, Ebrahim Patel, as well as ministers responsible for trade, the diplomatic corps, heads of businesses and media from across the continent. The launch ceremony will be a historic step and an instrumental tool in generating meaningful trade on the African continent through the shipment of South African products to AfCFTA states participating in the GTI such as Ghana, Egypt, Rwanda and Tunisia.
Unlocking opportunities: How female entrepreneurs can leverage on AfCFTA (The Business & Financial Times)
In Africa, it is estimated that small and medium-sized enterprises (MSMEs) make up approximately 90% of all businesses and contribute to over two-thirds of employment opportunities. These enterprises are also becoming hubs of innovation. This upward trajectory underscores the vast potential of MSMEs to drive Africa’s socio-economic growth and actualize the goals of the Africa Continental Free Trade Area (AfCFTA). Despite their significant contributions to the continent’s development, MSMEs, especially those led by women, still face challenges when it comes to accessing international markets and distribution channels.
It is imperative to unlock the transformative potential of women and youth-led MSMEs by linking them with the opportunities presented by the unified African Market, facilitated by the free flow of people, goods, services, and investments across borders. By empowering these enterprises with improved access to markets, financing, and technology, we can enable them to thrive and make substantial contributions to Africa’s transformation.
The Red Sea shipping crisis is having a ‘dramatic’ impact, warns logistics chief (UN News)
According to Jan Hoffmann, Chief of Trade Logistics at UNCTAD, the attacks are not only adding to geopolitical tensions but also raising costs and leading to increased greenhouse gases (GHG) emissions. “Maritime transport is really the lifeline of global trade,” he said, speaking to journalists at UN Headquarters in New York via video link from Geneva. “These disruptions underline their vulnerability to geopolitics, tensions, and climate changes.”
Amid conflict and climate risks, FAO highlights crucial role of AMIS in global food market stability (FAO)
In the face of escalating conflicts, economic slowdowns and downturns, and the growing climate crisis, the Agricultural Market Information System (AMIS) plays a crucial role in enhancing transparency and policy coordination in international food markets, Maximo Torero, Chief Economist of the Food and Agriculture Organization of the United Nations (FAO), has said.
Speaking at an expert panel at the Global Forum for Food and Agriculture (GFFA) 2024 in Berlin, he stressed how AMIS has helped to prevent unexpected price hikes and strengthen global food security.
AMIS was launched in 2011 by the G20 Ministers of Agriculture following the global food price hikes in 2007/08 and 2010. The information system, composed of G20 members plus Spain and eight additional major exporting and importing countries of agricultural commodities, assesses global food supplies (focusing on wheat, maize, rice and soybeans) and provides a platform to coordinate policy action in times of market uncertainty. Hosted by FAO, AMIS involves nine international organizations and aims to address the inherent risks and uncertainties within agrifood systems.
Harnessing Intellectual Property Rights for Innovation, Development and Economic Transformation in Least Developed Countries (The Commonwealth)
Innovative activity in Least Developed Countries (LDCs), as proxied by data on the protection of various forms of intellectual property rights (IPRs), is limited. While applications for intellectual property (IP) protection have generally increased in LDCs in recent years, they remain very low compared with in developed countries and the global average. Even applications for trademarks, the single most widely used form of IP protection in LDCs fall far below the annual averages globally.
To address these difficulties and deploy IPRs more effectively to stimulate innovation and economic transformation, LDCs need to strengthen their domestic IP strategies, frameworks and institutional structures in ways that align with their local needs and conditions and levels of development and economic structures.
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Sales of NEVs on the rise in South Africa (Engineering News)
Amid a global emphasis on green energy and the subsequent global energy transition, total sales of new energy vehicles (NEVs) in South Africa increased by 65% year-on-year in 2023, with hybrid vehicles making up most of these sales. Toyota South Africa Motors (TSAM) witnessed a 22% year-on-year increase in the sale of NEVs.
“If we keep going in this trajectory, it’s going to be interesting to see what the next five years will look like,” TSAM president and CEO Andrew Kirby said at this year’s State of the Motor Industry event held in Kyalami, Gauteng, on January 25. TSAM senior sales and marketing VP Leon Theron pointed out that 42% of the Lexus range consists of NEVs.
“We’ve done a lot in the last three years to really increase our footprint within the NEV space,” expressed Theron. Theron described last year as a “phenomenally successful year” for TSAM, noting that the company also achieved its highest market share of 26.8%.
Competitiveness concerns could scupper once-in-century potential for South Africa to reindustrialise (Engineering News)
The global and local renewable energy transition is presenting industries, and South Africa, with a once-in-a-century growth trajectory to provide products and components into the value chains of renewable energy and battery energy storage systems (BESSs). During the second quarter of 2023, more than $1.7-billion worth of solar panels, inverters and lithium-ion battery systems were imported into South Africa, and this number excludes other components and parts.
Further, the National Energy Regulator of South Africa registered 4.5 GW of private energy projects in 2023, economic research nonprofit Trade and Industrial Policy Strategies senior economist and South African Renewable Energy Masterplan facilitator Gaylor Montmasson-Clair pointed out during a media discussion on January 24.
The global energy transition, which is under way, presents a once-in-a-lifetime opportunity to reindustrialise and South Africa should take note of that, concurred manufacturing competitiveness consultancy BMA Analysts battery energy storage research and sector lead Mbongeni Ndlovu.
Dedicated freight lanes and restricted truck operating hours mooted in draft plan to shift cargo back to rail (Engineering News)
The Department of Transport (DoT) is canvasing a series of interventions aimed at attracting freight back to South Africa’s struggling rail system from road, which has emerged as the country’s freight backbone following Transnet Freight Rail’s (TFR’s) precipitous decline in recent years. Notwithstanding a long-standing road-to-rail policy, the DoT reports that 87% of freight is currently being moved by truck, with volumes moved by TFR having declined sharply from 226-million tons in 2017/18 to only 149.5-million tons in 2022/23.
This calamitous collapse led President Cyril Ramaphosa to form the National Logistics Crisis Committee in 2023, as well as to the development of a new Freight Logistics Roadmap, which was approved by Cabinet late last year. The roadmap places emphasis on the introduction of private sector participation in both the port container terminals and the freight rail network; moves that would be facilitated by a vertical separation of port and rail infrastructure management of terminal and rail operations respectively.
A subcomponent of the roadmap is the Freight Road to Rail Migration Plan, the draft contents of which were shared by acting chief director Mihlali Gqada during a colloquium, hosted ahead of the February 2 deadline for public comments. The plan describes the country’s current freight logistics trajectory as “unsustainable” and notes that South Africa’s high logistics costs are placing importers and exporters at a competitive disadvantage. With logistics costs estimated at 11.3% of gross domestic product (GDP), South African logistics costs are materially higher than the global average of 7% of GDP, while the transport component of these costs is also high at about 55%.
Duty-free car import regulations tightened (The Herald)
Updated regulations for duty-free vehicle imports by civil servants, public health workers, and junior and specialist doctors were gazetted at the end of last month to ensure that State workers in the applicable grades can benefit, without loopholes. The scheme has been operating for some time and a lot of civil servants have benefited, but there have been some abuses and the updating of the regulations should close most of these.
The regulations are contained in Statutory Instrument 247 of 2023 gazetted on December 29 last year by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube.
“A rebate of duty shall be granted in respect of one motor vehicle imported or taken out of bond by a serving public servant of Zimbabwe who is employed in the Civil Service and Service Commissions and who is not a senior civil servant issued with a condition of service motor vehicle and is not under any disciplinary proceedings, “The money to buy the car has to be from either a loan availed under the Transport Purchase Fund managed through CMED (Private) Limited or the serving public servant’s own resources. The car is solely for the private and business use of the serving public servant and not for commercial or trade purposes,” reads part of SI 247.
Three SADC members keen to join Zim-Moza Beira Corridor route (The Herald)
The Democratic Republic of Congo, Malawi and Zambia are keen to join Mozambique and Zimbabwe who have signed a memorandum of understanding over the Beira Corridor route. Zimbabwe will soon write to the SADC secretariat to state that the DRC, Malawi and Zambia have expressed interest to come on board.
The development comes after Zimbabwe and Mozambique agreed to refurbish and extend the 10km railway line that stretches from Machipanda to Mutare, linking their two systems, within the next three months. The Transport Ministers of the two countries recently confirmed the development during a tour of the Forbes and Machipanda border posts. Last Wednesday, Mozambique’s Transport and Communications Minister Mr Mateus Magala arrived in Zimbabwe to hold bilateral meetings on co-operation in transport and transport infrastructure with Zimbabwean Transport and Infrastructural Development Minister Felix Mhona.
In an interview, Transport and Infrastructural Development Permanent Secretary Engineer Joy Makumbe confirmed the interest of the three SADC member states to come on board for the upgrading of the transport corridor. “Our discussion mostly was on the Beira Corridor where Mozambique and Zimbabwe are signatories to that MoU. But the discussion was that we also incorporate DRC, Malawi and Zambia who have also expressed interest to be beneficiaries of that agreement.
To enhance political will and strengthen the capacity of Member States to apply the AU Guidelines for the Development of Regional Agricultural Value Chains (RAVCs) in Africa, the ECA has initiated a project on Strengthening Member State capacity to develop Regional Agricultural Value Chains to promote Diversification and Intra-African Trade. In partnership with the COMESA Secretariat, the project will promote regional value chains of two strategic commodities, maize, and dairy, in Zambia and Zimbabwe with a view to foster agro-processing.
Following a review of the policy, regulatory and institutional frameworks in Zambia and Zimbabwe, this week, COMESA and ECA are holding a series of workshops with key stakeholders to validate the report’s recommendation on strengthening maize and dairy value chains. The workshops are also aimed at reviewing the industrialization and export strategy for maize and dairy products in the two countries. In addition, key stakeholders are undergoing training in maize and dairy value chains to increase their capacities in mainstreaming regional value chain development in agricultural policies and strategies.
The Utilization of Trade Preferences by COMESA Member States (COMESA)
Governments are increasingly negotiating Free Trade Agreements (FTAs) and mega-regionals to create and expand market access for their economies. The African Continental Free Trade Area (AfCFTA) is the latest attempt in the region. Only recently, Governments have realized the importance of using utilization rates to monitor the effective use of FTAs by their firms.
The utilization of trade preferences is an instrument to measure how firms effectively use an FTA. As such, it is an essential tool that assists policymakers and administrations in establishing the effectiveness of trade agreements; and firms to realize the extent of the missed trade opportunities.
This study stems from a long-standing relationship between the Common Market for Eastern and Southern Africa (COMESA) and the United Nations Conference on Trade and Development (UNCTAD) Secretariat in trade and trade facilitation. It aims at shedding light on one important aspect of regional integration, namely, the effective use of the trade preferences provided by free trade agreements (FTAs) such as the COMESA FTA and other preferential trade arrangements (PTAs) granted by QUAD Developed countries such as AGOA, EBA, and GSP preferences.
Three Years After AfCFTA Ratification: Should Africans Still Rely On It? (Modern Diplomacy)
The main objective of the AfCFTA was to bring all African countries to the common market by eliminating customs duties and taxes on goods, allowing free movement to stimulate trade between member countries, building a free market economy, stimulating competition in the production through industries as well as the establishment of a customs community.
The World Economic Forum (WEF) mentions Africa, as the community with the lowest contribution to world trade, contributing only 2% where at the moment the total income of the continent is USD 3.4 Trillion, so the implementation of the agreement was expected to increase the income by 7% every year. According to the recommendations from the Economic Commission for Africa (ECA), agricultural production could be the main catalyst in stimulating the industrial sector hence boosting the African economy.
The production is expected to boost trade between partner countries from 18% (currently) to 52.3% by 2025 after removing customs duties and reducing non-tariff barriers for more than 60,000 approved products. This move is expected to grow the African economy to USD 29 trillion by 2050 and the growth is expected to lift more than 30 million people out of extreme poverty.
Leveraging AfCFTA’s foundations to a create new forum for inter-African cooperation (MyJoyOnline)
Oxford Business Group (OBG) and the Africa Prosperity Network (APN) are joining forces to spearhead the APN initiative to identify and address bottlenecks in manufacturing, adding value, and trading within the African continent. This strategic partnership signifies a commitment to shedding light on Africa’s economic landscape, particularly in Ghana and the context of the African Continental Free Trade Area (AfCFTA) headquarters being established in Accra.
The Memorandum of Understanding (MOU) between OBG and APN extends over three years, reflecting a dedicated effort to ensure that crucial voices from all sectors become an integral part of the ongoing conversation surrounding Africa’s prosperity. The central focus of this collaboration is to create awareness among stakeholders ranging from heads of state to corporate leaders within the continent. This initiative is primarily designed to foster understanding at various levels, offering a platform for interconnected dialogue not only among governments but also between heads of governments and private sector representatives.
The pivotal “Delivering Prosperity in Africa” conference, scheduled to take place in Accra from January 25 to 27, will mark the official launch of this endeavour. The conference will serve as a platform to bring together leaders from government and the private sector, facilitating discussions on critical issues related to manufacturing, value addition, and trade within Africa.
Second Africa Prosperity Dialogues take off in Aburi (Ghana News Agency)
The second edition of the Africa Prosperity Dialogues – a platform for discussing issues, forming formidable partnerships and committing to achieving the “Africa Beyond Aid” agenda envisioned by the African Union (AU) kicks off today at Aburi in the Eastern Region. The three-day event, which would be attended by some African heads of States and top business, political, thought leaders and development partners is on the theme: “Delivering prosperity in Africa: produce, add value, trade.”
Thematic areas for the 2024 Africa Prosperity Dialogues include agriculture and food sovereignty, natural resources and value addition, manufacturing, infrastructure and ICT, finance and investment, and transport and logistics. Mr Gabby Otchere-Darko, Founder/Executive Chairman, African Prosperity Network, has explained that the summit was aimed at changing the narrative and focusing on the prosperity of the continent.
Mr Silver Ojakol, Chief of Staff of the AfCFTA Secretariat, called for improved connection between business and political leaders to engender actions that would increase productivity, value addition, and intra-continental trade.
AfCFTA Secretariat set to establish protocol on digital trade this month, says Wamkele Mene (Asaase Radio)
The secretary general of the African Continental Free Trade Area (AfCFTA) Secretariat, has said the secretariat is set to establish a protocol on digital trade this month. Mene said the protocol on digital trade is aimed at supporting the African youth to thrive in the continent’s digital space.
Speaking at the opening of the Africa Prosperity Dialogues at the Peduase Presidential Lodge, Mene said, “… we have established a protocol on investments to protect not primarily foreign investors but to protect African investors… so we will conclude a protocol on women and youth in trade and also conclude the protocol on digital trade this month.
He added, “The protocol on digital trade positions us to harness the benefits of Africa’s digital economy for the inclusion of young Africans who are at the cutting edge of digital innovation and who require the regulatory support for them to thrive in the Africa digital market. Mene said over the last three years, the AfCFTA has recorded tremendous success in ensuring that “the vision of the founding fathers does indeed become a reality”.
He said, “As we speak, we have developed the AfCFTA tariff book which enables the private sector to determine with certainty the tariffs that apply to the products they want to export.” “… we also have the rules of origin manual for the very first time. As an African continent, we are able to apply Rules of Origin that are harmonized to enable an exporter from Kenya to export to Malawi with a great deal of certainty of the market that they are exporting to…
PAPSS adoption to support African e-commerce boom (ITWeb Africa)
PAPSS is the brainchild of Afreximbank, the continent’s trade financing institution. The adoption of the Pan African Payment Settlement System (PAPSS) is expected to boost the continent’s current e-commerce growth.PAPSS, which will launch in 2022 as a digital platform for facilitating cross-border payments in native African currencies while removing intermediaries and conversion fees, arrives at an exciting time for e-commerce.This is despite issues such as internet connectivity, delivery logistics, and cyber security.
Morris Macharia Musyoka, a notable software engineer and techpreneur, stated that tackling these and other financial difficulties, such as limited access to multi-currency payment platforms and extended settlement periods that impair cash flow, is critical for long-term success. “The PAPSS emerges as a solution, facilitating payment transactions across Africa without reliance on correspondent banks outside the continent,” added the official.”With over 10 countries and commercial banks adopting PAPSS, the e-commerce sector is poised for substantial growth, potentially challenging, arguably, global giants like Amazon.”
Djibouti, The Gambia, Ghana, Guinea, Kenya, Liberia, Nigeria, Sierra Leone, Zambia, and Zimbabwe have all implemented PAPSS through their central banks.
Africa’s resources must power continent’s development – AfCFTA Chief of Staff (Ghana News Agency)
Mr Silver Ojakol, Chief of Staff, African Continental Free Trade Area (AfCFTA) Secretariat has challenged business and political leaders to be intentional in utilising the Continent’s vast natural resources for development. He stated that for the past years, Africa’s resources had powered global development to the detriment of the continent and its people, and asked business and political leaders to change the narrative through AfCFTA.
“There is an urgent need for us [Africa] to use our vast natural resources and the demographic advantage for industrialisation, improved infrastructure and energy solutions that will enhance and reduce production cost,” he said.
The AfCFTA Chief of Staff expressed worry about a comment by Mr Ruchir Sharma, Chair of Rockefeller International, who said: “The biggest problem for global growth is Africa, now home to 1.5 billion people.” Rather, Mr Ojakol said: “Industrialisation in the world is driven by the minerals that are leaving the continent – cocoa, coffee, gold, copper, timber, bauxite, iron and manganese… If we stop our raw materials from leaving our coast, the global economy would grind to a halt,” he noted.
Critical Minerals (UNEP)
The transition from fossil fuels to clean energy sources will depend on critical energy transition minerals. Minerals – such as copper, lithium, nickel, cobalt – are essential components in many of today’s rapidly growing clean energy technologies, from wind turbines and solar panels to electric vehicles. The consumption of these minerals could increase sixfold by 2050, according to the IEA, with their market value reaching US$400 billion, exceeding the value of all the coal extracted in 2020. To stay below 2°C by 2050, more than three billion tonnes of energy transition minerals and metals is needed to deploy wind, solar and energy storage.
However, critical energy transition minerals come with environmental, social, economic, geopolitical, trade, and partnership challenges and opportunities. While the growth of minerals supply plays a vital role in enabling a clean energy transition, if poorly managed, the production and processing of these minerals can lead to a myriad of negative consequences, including: Significant greenhouse gas emissions arising from energy-intensive mining and processing activities. Environmental impacts, including biodiversity loss and pollution. Social impacts including human rights abuses such as child labour and negative impacts on indigenous people’s rights. In addition, there is a supply challenge which could slow down the energy transition or make it more expensive and unequal.
To address the intricate balance between supply and demand, we must support a just energy transition through responsible mining and circularity. This means ensuring stability in supply while reducing demand through responsible sourcing and resource circulation. Rethinking mobility, housing, and industrial systems is essential as is emphasizing material efficiency, substitutes, and circularity. Additionally, responsible extraction practices must be implemented to achieve a socially just and environmentally sustainable outcome.
Steel exports: China turns to Africa to sell surplus metal (The Exchange Africa)
Non-Aligned Movement Reaffirms Multilateralism, Inclusive Trading System (SDG Knowledge Hub)
Member countries of the Non-Aligned Movement (NAM) – a bloc of 120 developing countries championing international peace and security and a steady global recovery from the COVID-19 pandemic – have agreed to make joint efforts to realize the 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda (AAAA) through development cooperation, acceleration of SDG investments, and reform of the international financial architecture, among other actions.
In the Kampala Declaration of the 19th Summit of Heads of State and Government of the Non-Aligned Movement, NAM members commit to achieving sustainable development “in an integrated and indivisible manner of its three dimensions” by: supporting sustained, inclusive, and sustainable growth; enhancing macroeconomic policy cooperation; exploring measures of progress on sustainable development that complement or go beyond gross domestic product (GDP); and implementing actions to accelerate sustainable development in developing countries with support from the international community, including financial resources, transfer of technology, technical cooperation, and targeted capacity building.
We are working towards a modern governance of public finances (New African Magazine)
Jean-Baptiste Ondaye, Minister for the Economy and Finance in the Republic of Congo, gives an overview of his country’s financial situation, and outlines the work underway in the CEMAC zone in terms of financial inclusion.
To what extent will your financial inclusion strategy, which is in line with CEMAC’s regional initiatives, stimulate greater economic integration in Central Africa? You are referring to CEMAC’s 2023-2027 regional financial inclusion strategy, which has just been adopted. It has been designed to remove the constraints to formal financial inclusion on the demand side as well as on the supply side, the legal and regulatory framework and the financial sector environment in CEMAC. The aim is therefore to promote financial inclusion in each member country and cross-border digital payments within the Community. The objective of the National Development Plan 2022-26 is to build a strong, diversified, and resilient economy, with a view to creating more wealth and jobs, particularly for young people and women.
How to Ease Rising External Debt-Service Pressures in Low-Income Countries (IMF BLog)
Financing pressures due to relatively high interest payments and the pace at which low-income countries need to repay debt are straining budgets. That prevents these countries from spending more on essential services or the critical investment needed to attract business, create jobs, improve prosperity, and build climate resilience.
One important metric is the share of revenues the government collects from its population through taxes and other fees that goes to pay its foreign creditors. While the scale of the burden differs greatly across countries, it’s generally about two and a half times higher than a decade earlier. This means for a typical low-income borrower the share has risen to about 14 percent, from about 6 percent, and as much as 25 percent, from about 9 percent in some economies. This is one of the key indicators used in the framework for assessing debt sustainability that signals a country might be at risk of needing financial support from the IMF or of missing a debt payment.
Low-income countries also have significant debt repayments falling due in the next two years. They need to refinance about $60 billion of external debt each year, about three times the average in the decade through 2020. But with many competing demands for financing, including from advanced and emerging market economies that are also trying to adapt to climate change, there’s a significant risk of a liquidity crunch—failure to raise sufficient financing at an affordable cost. That could in turn lead to a destabilizing debt crisis.
Africa: Sustainable debt management key to adequate education financing (Amnesty International)
Given the educational failings across Africa, especially in conflict-affected regions and following the disruptions to education caused by Covid-19, African governments must not just meet but go beyond the minimum budget thresholds established by the Dakar and Incheon Declarations if they are to ensure that the right to education is fully protected and promoted. The United Nations Conference on Trade and Development ( UNCTAD ) estimates that nearly 57% of Africans live in countries that spend more on debt repayments than education and health combined.
Rising markets in Latin America, Africa, and Asia are guiding the global surge in new consumers, with India leading the way, by adding 34 million people to the consumer class this year, almost one third of the 109 million worldwide. After Asia, Africa and Latin America are, respectively, the second and third regions to add more people, per the World Data Lab. This general consumer increase led by these three dynamic regions unfolds into the digital commerce realm as well: combined, LatAm’s and Africa’s digital commerce markets are expected to surpass US$1 trillion in total value by 2026, while India’s will be over US$275 billion, per Payments and Commerce Market Intelligence (PCMI) data in the new annual Beyond Borders, EBANX’s comprehensive study about the digital market and payments in rising economies, launched today.
As an early adopter of digital payments, and soon to be home to an adult population of 1 billion by 2030, Africa is also an important region for the outstanding digital growth of commerce and payments. After heavily embracing digital payments, which jumped from a 23% to a 46% penetration rate considering many of its countries in less than eight years, Africa is now on the verge of its next big leap: digital commerce, fueled by cellphone penetration rates and constant adaptability of local, alternative payment methods to the online world, like mobile money, which reached almost universal penetration in countries like Kenya.
The Group of 77 countries plus China is an important platform for developing countries to make their collective voices heard at a time when the world is facing multiple crises, said Claver Gatete, Executive Secretary of the Economic Commission for Africa (ECA). This, he said, is the key principle of ‘Leaving No One Behind’ that must guide our actions.
Mr Gatete was speaking on behalf of the five UN Regional Economic Commissions at the Third South Summit in Kampala, Uganda that took place on the theme: Leaving no one behind. The Summit was aimed at “bringing a new dynamic to the cooperation among its 134 member States of the Group of 77 (G-77) in a more competitive world.”
“As we prepare for the Summit of the Future, the unified voice of the G77 plus China will be a critical factor for success. The convening role of the regional commissions will also be essential,” said Mr Gatete adding that the principle of “leave no one behind” is more than the North-South divide. It is about the most basic and fundamental right and dignity of our people. “If there was ever a time when multilateralism demanded more from us, now is the time, and the leadership role of the G77 plus China will become even more critical.
He highlighted three key areas illustrating the regional commissions’ role in contributing to the principle of Leaving No one Behind and assessing the sources of vulnerabilities in developing countries. One is the deficit of industrialisation which prevents the creation of decent jobs to tackle poverty adequately. The second is the exposure to the negative effects of climate change. The third is the deficit in technological development that could lead to further global divide.
US and African Development Bank Forge Stronger Ties to Boost Food Production (AfDB)
United States Secretary of State Antony Blinken has praised the African Development Bank Group for the exceptional efforts it is undertaking to help Africa feed itself and the rest of the world.
“Extraordinary work is being done to get to a place where Africa feeds itself and a place where Africa feeds the world. I’m convinced that can happen,” Secretary of State Blinken said during a visit hosted by African Development Bank Group President, Dr. Akinwumi A. Adesina in Abidjan on Tuesday. The two met at the headquarters of AfricaRice—a pan-African centre of excellence for rice research, development, and capacity building that implements Bank agricultural programmes.
Dr. Adesina also thanked Secretary Blinken for a new grant of $9.5 million to support the Bank’s Technologies for African Agricultural Transformation initiative, or TAAT. The grant, which is a part of the larger US Government “Feed the Future” global hunger initiative, will be used for the second phase of the Bank programme called TAAT II, to help African countries increase food production, introduce climate-smart technologies, and expand extension services. To date TAAT has deployed climate-resilient agricultural technologies and fertilizers to 13 million African farmers in 40 African countries to help boost the continent’s food production and food security. The USAID grant will help expand the reach of TAAT II further.
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Aqora becomes Afrivolt, aims for battery cell manufacturing in Cape Town (Engineering News)
South African energy company Aqora has rebranded to become Afrivolt, says MD Deshan Naidoo. The firm’s goal, however, remains the same – opening a lithium-ion cell gigafactory in South Africa, able to produce anodes, cathodes and lithium-ion batteries for stationary storage applications and, in the medium term, for electric vehicles (EVs). Procuring and processing the minerals and metals needed for the factory within Africa has become more of a longer-term plan, adds Naidoo, with cell production moving to the front of the queue.
“It has been difficult to raise capital in this challenging economic environment, so we have been forced to change our strategy and reduce our investment requirements. “We view the immediate opportunity as cell manufacturing.” Naidoo says the lithium-ion battery cell plant is currently the subject of a due diligence process, with Afrivolt locked in talks with finance institutions to raise the required capital.
Uganda reaffirms commitment to clean energy sustainability (CGTN Africa)
Uganda’s energy minister Ruth Nankabirwa reaffirmed the East African country’s commitment to maximise its oil and gas reserves sustainably amid concerns that its current projects will fall victim to overexploitation. Uganda discovered oil deposits close to two decades ago, sparking hope that the nation could accelerate its development and gain revenue. However commercial oil production is yet to start due to delays caused by inadequate infrastructure.
Two major projects in the pipeline, the Kingfisher and Tilenga oil fields, are expected to produce tens of thousands of barrels of oil per day at their peaks. The country also has the East African Crude Oil Pipeline Project that will transport oil produced from Uganda’s Lake Albert oilfields to the port of Tanga in Tanzania where the oil will then be sold to global markets. But as Uganda plots on how to maximise its reserves, global leaders seek to reduce the use of fossil fuels. The issue places Uganda in a dilemma between economic development and fossil fuel phase-out.
Kenya strikes large deposits of mineral used in phones, laptops (The East African)
Kenya has announced that the precious coltan mineral, which is used in the manufacture of cell phones, laptops and other communication gadgets has been found in the country. Mining and Blue Economy Cabinet Secretary (CS) Salim Mvurya said on Wednesday that adequate deposits of coltan have been found in six counties. The rare metallic mineral, mostly found in the eastern part of the Democratic Republic of Congo (DRC), is mainly used for the production of electronic goods of mass consumption, such as mobile phones, laptops and videogame consoles, and its discovery in Kenya is set to raise the country’s profile as a mineral exporter.
The CS said the government is determined to make mining industry more vibrant for the benefits of the country. He said more workers will be employed to assist in exploration of the minerals which are spread across counties.
He lamented that illegal mining is rampant in the country and the vice must be eradicated. “Some have been carrying out mining of precious minerals without licences, we shall weed out all those investors who don’t follow the law, We want mining to be a business where investors comply with all aspects of the law,” he said. He said a special unit has been set up by the cabinet to enforce compliance.
Kenya exports to Uganda rise to $648m (The East African)
The value of Kenya’s exports to Uganda crossed the Ksh100 billion ($618 million) mark for the first time in November 2023, owing to a weak currency that had made the local goods cheaper in the neighbouring country. Official data shows that Kenya exported goods valued at Ksh105 billion ($648.95 million) to Uganda in the year to November last year, a period that saw the Kenyan shilling lose 17.45 percent of its value against the Ugandan shilling. Antony Mwangi, the managing director of the Kenya Association of Manufacturers (KAM), and whose members are the major exporters to Uganda, reckoned that the increase “may not be because of the increase of products that we are exporting, it may be because our currency now is weaker.”
Kenya in tight spot as EAC, Europe trade deals clash (The East African)
Kenya’s recently completed trade deals have run into stormy waters after Nairobi applied higher import duties on whiskies and wines from the United Kingdom and the European Union (EU) respectively, two jurisdictions with which it signed Economic Partnership Agreements (EPA).
While Kenya, in line with the East Africa Community (EAC) Customs Union, is applying a higher tariff of 35 percent on imported wines and whiskies to encourage local production, the two EPAs put the import duty at 25 percent. The deal with the EU is awaiting ratification in Brussels while the agreement with UK is operational.
The countries in the EU and UK, which produce Scotch Whiskey, Tequila, Champagne and Bourbon, are protected by a clause in the World Trade Organisation (WTO) agreement that forbids their manufacture in other countries. This has left Kenya in an awkward position as it is expected to implement a higher tariff of 35 percent in line with Common External Tariff (CET) under the EAC Customs Union.
Nigeria seeks to expand $11.8bln bilateral trade with India (ZAWYA)
The federal government is seeking to expand over $11.8 billion bilateral trading partnership with the Republic of India in a bid to boost growth in key sectors of the Nigerian economy. Speaking on Tuesday at the Nigeria-India Business Council (NIBC) held in Abuja, the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite commended India for investing much in Nigeria. “India is among Nigeria’s top 10 trading partners, and Nigeria is India’s largest trading partner in Africa. The total bilateral trade between India and Nigeria as of 2022 stood at USD 14.95 billion, as against USD 8.81 billion during the year 2020 – 2021; this, unfortunately, dipped to USD 11.8 bn last year but remains a clear indication of the importance of trade relations between our two nations”.
DP World’s $2bn Mozambique port expansion gets approval (Engineering News)
Mozambique approved an extended deal for DP World, Grindrod and other operators of its biggest port, including a $2-billion expansion that will further draw cargoes away from neighboring South Africa’s creaking trade infrastructure. The group, which also includes Mozambique’s state-owned railway operator, won a 25-year extension to run the port in Maputo, the capital, ending in 2058. The Council of Ministers approved the deal on Tuesday, according to a statement. The agreement includes investments of nearly $1.1 billion by 2033 when the original concession was due to end.
Maputo’s port has grown rapidly in recent years, as it caters to demand from Mozambique’s growing economy and exports from neighboring South Africa. Miners of coal, chrome and magnetite, a type of iron ore, have been sending increased volumes by truck to Maputo as snarl-ups at South Africa’s state-owned rail and ports company Transnet’s have cost them billions of dollars in lost revenue.
Standard Chartered nears agreement on Miga-backed Senegal government loan (Global Trade Review)
The Multilateral Investment Guarantee Agency (Miga) is eyeing its second guarantee for a short-term trade-focused loan facility to an African government, following an application by Standard Chartered. The €190mn facility, which was outlined by Miga this week and is due for board approval by February 22, would be made available to Senegal’s Ministry of Finance and Budget to provide short-term loans for trade-related payments, mainly in the agriculture sector.
Miga says the project would help Senegal’s government “unlock trade finance liquidity support for the local agriculture sector, at a time when there are significant liquidity constraints in the trade finance market due to current economic conditions”.
Zambia ratifies tripartite corridor agreement (New Era)
The Zambian government successfully ratified the Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC) Tripartite Agreement on 12 January 2024, and deposited the instruments of ratification with the Southern African Development Community (SADC). The WBNLDC is a key corridor and trade route connecting the Port of Walvis Bay with Ndola in the Copperbelt of Zambia and Lubumbashi in the mineral-rich region of Katanga in the Democratic Republic of the Congo (DRC).
The WBNLDC is aimed at creating an alternative trade route to the mineral hubs of DRC and Zambia to international markets, the seamless movement of goods and people, as well as boost regional integration. The tripartite agreement was signed in March 2010 by the member states of DRC, Namibia and Zambia. The DRC was the first to ratify the agreement in 2015, followed by Namibia in 2021, and now Zambia.
Announcing their ratification, Zambia’s Minister of Transport and Logistics Museba Frank Tayali said it will boost economic development amongst the member countries and beyond. He further underscored that the ratification will yield benefits such as improved infrastructure, private sector participation, as well as contribute to the overall development of the region through promoting cross-border trade and investment.
Functional Private sector participation key to AfCFTA success – President Akufo-Addo (Ghanatodayonline)
For the African Continental Free Trade Area to succeed, the President of the Republic, Nana Addo Dankwa Akufo-Addo, has emphasized the need for effective private sector led participation. President Akufo-Addo stated that private participation is necessary for the AfCFTA to be as transformative as intended during his speech at the 2024 World Economic Forum event on “Driving Action Under the African Continental Free Trade Area and Launching the First AfCFTA Private Sector Action Plan” on Wednesday, January 17, 2024.
“Critically, active private sector participation will be key to the success of this transformational initiative. Excellencies, let’s not lose sight of the fact that the AfCFTA is not a “government initiative”, rather it represents the first step toward empowering our private sector to lead the economic emancipation and transformation of our continent” he indicated.
Improve tax laws to attract investors, EAC states told (People Daily)
Tanzanian authorities have called on East African Community (ECA) member states to improve tax collection methods to attract investors. The call was made by Permanent Secretary in the Ministry of Finance Natu Mwamba when she opened the 51st forum for Commissioners-General of East African revenue authorities in Tanzania’s commercial hub of Dar es Salaam.
Mwamba urged the EAC revenue authorities to improve tax laws and procedures to attract investors and encourage investment in the East African region. Alphayo Kidata, the commissioner general for the Tanzania Revenue Authority, urged revenue authorities in the EAC region to unite and work together to bring efficiency in revenue collection, expand the tax base, prevent tax evasion, and provide better services to taxpayers.
The appeal by the PS comes at a time when experts in Kenya have warned that increasing tax rates beyond certain point may reduce tax revenue because higher taxes can discourage economic activity and worsening the cashflow.
EAC diaspora remittances soar to a record $9.3 billion (The Citizen)
Remittances from the East African diaspora soared to a record $9.3 billion in 2022 despite the high cost of funds transfer. This is according to the World Bank which says remittances are now one of the largest sources of external financing for the region. The remittances to the East African Community (EAC) partner states stood at $ 5.4 billion in 2017, jumping to $9.3 billion in 2022.
Despite the rosy picture, the Bretton Woods institution wants the region to develop mechanisms that will ease the cost of transfer of the funds. Reduction of the cost, it says according to a dispatch from the EAC secretariat, would boost the partner states’ economies.
“The current information on remittances from the World Bank indicates that the partner states received a combined $9.3billion in 2022”, the EAC statement said. Kenya, the largest economy in the region, has been leading in the diaspora remittances compared to other states in the union.
Upcoming meeting: AU Roundtable to catalyse investments and partnerships (ESI-Africa)
The Africa Union (AU) “Scaling Up Green Investments to Address Climate Change” roundtable taking place at Africa’s Green Economy Summit in Cape Town next month offers AU member states and high-level stakeholders the opportunity to explore the potential of green investments and funding instruments to combat climate change on the continent.
The Summit, taking place from 21-23 February 2024 in Cape Town, is centred around connecting the global investment community with investment prospects in Africa’s green economy space. HE Josefa Leonel Correia Sacko, Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment (ARBE), African Union Commission (AUC), Ethiopia, comments: “Africa’s Green Economy Summit is a vital link between global capital and sustainable projects in the continent. The Summit unites investors, project leaders, and policymakers, fostering connections and paving the way for an inclusive green economy and a sustainable future for all.”
U.S.-Africa Trade Council advises Lagos govt against styrofoam ban (Businessday Nigeria)
The U.S.-Africa Trade Council has warned the Lagos State government of a potential rise in unemployment arising from its ban on the use of Styrofoam, otherwise known as single-use plastic containers, in the state. On Sunday, the Lagos State government prohibited the use of Styrofoam, a common component used in the sale of cooked food, without prior warning or enough consultation with stakeholders in the state.
In a press statement, signed by Titus Olowokere, CEO/President of the U.S.-Africa Trade Council, and made available to BusinessDay on Tuesday, the non-governmental organisation focused on strengthening trade relations between the U.S. and Africa pointed out that “the ban, although well-intentioned, fails to evaluate the broader economic consequences it entails.”
In highlighting the negative impact of the ban, the organisation stressed the huge economic significance of this industry, pointing to the thousands of Nigerians employed across the state. It said, “The sudden halt in production and use of single-use plastic containers in Lagos will lead to significant job losses, further exacerbating the unemployment rate. This ban directly affects not only industry workers but also countless small-scale entrepreneurs who depend on the plastic sector for their livelihoods.”
Maersk and CMA CGM Help Nigeria Achieve Firsts in Growing Container Trade (The Maritime Executive)
The West African container trade is growing rapidly with Nigerian officials marking the arrival of the largest containership into their new Lekki Deep Sea Port and the scheduled arrival of the first LNG-fueled containership into West Africa. These milestones come as the Lekki port marks its first anniversary as the deepest seaport in the region.
The carriers are ushering in upgrades to the West Africa Express (WAX) service that includes calls in Nigeria as well as Ghana, Cote d’Ivoire, and Congo and connecting West Africa to China, Southeast Asia, and India. It is a weekly service that includes calls by vessels in the 13,000 to 15,000 TEU range. A total of 13 large containerships will be used to maintain the service.
Nigerian officials highlight that the arrival came as the Lekki port prepares to mark its first anniversary for commercial operations. The Freeport Terminal, which is managed and operated by the CMA CGM Group, is a multi-user facility that CMA CGM calls “a game-changing infrastructure for Nigeria and West Africa.” The first phase, which opened in February 2023, has a capacity of 1.2 million TEU with five ship-to-shore cranes. When completed, the port will have a total of over 3,900 feet of berth with a depth of over 52 feet and the capacity to handle 2.5 million TEU. CMA CGM highlights that the port serves as a mega transshipment hub, especially to Nigeria’s neighboring countries in the Gulf of Guinea, including Togo and Benin.
FPCCI backs Look Africa initiative, pushes for bilateral trade deals (The New International)
Pakistan’s top business body urged the government on Tuesday to sign free trade agreements (FTAs) with African nations, saying it would help increase the country’s exports to the continent and reduce its trade deficit.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said it fully supported the Look Africa Policy Initiative of the Ministry of Commerce, which aims to enhance trade and economic cooperation with African countries. FPCCI acting President Saquib Fayyaz Magoon said Pakistan should pursue bilateral FTAs with the top seven economies of Africa - Egypt, Nigeria, South Africa, Algeria, Ethiopia, Morocco and Kenya - which account for about 78 percent of the total gross domestic product (GDP) of Africa. “There are significant economies in Africa with whom we can multiply our trade volumes within years - both bilaterally and exports to the region cumulatively,” Magoon said in a statement.
He said Pakistan’s exports to Africa, as a whole, showed stagnation at around $1.5 billion in 2022, while its imports from Africa rose from $3.18 billion in 2018 to $4.38 billion in 2022, resulting in a trade deficit of $2.88 billion.
Gambia calls for implementation of Doha Programme of Action for LDCs (The Point)
Speaking at the 19th Ministerial Meeting of Non-Aligned Movement Countries in Kampala, Uganda, Lang Yabou appealed for the need for member countries to further deepen cooperation through the pursuit of more win-win partnerships, solidarity and collaboration.
“Shared global affluence is a goal that can be achieved if we take up our global commitments more seriously by rebuilding the lost trust within the international community,” PS Yabou said. “Too many development blueprints, too many unfulfilled commitments, inadequate international solidarity, deep international mistrust and polarisation are all negatively impacting our cooperation mechanisms and multilateralism in general.”
He urged countries to reinvest in the revival of multilateralism and global partnership systems since no country can go it alone when it comes to dealing with climate change, underdevelopment migration, pandemic preparedness and response, cybersecurity, disarmament, terrorism and conflict resolution.
“We do not only need to cooperate more, but such cooperation must be on a global scale, and deepened at the global level for our collective prosperity. The Sustainable Development Goals (SDGs) were designed to deliver prosperity for all member states through strong institutions, cooperation, global solidarity and partnership. With renewed vigor, the international community, including the International Financial Institutions (IFIs) must accelerate the implementation of the goals with critical financing for development.”
Lauding India for the facilitation of membership of the African Union into the intergovernmental G20 forum, visiting President of the United Nations General Assembly Dennis Francis said that it depicts New Delhi’s leadership in the international arena. He said that it also demonstrates India’s long-standing commitment to assist and facilitate development in the Global South, adding that Africa is a region whose potential is yet to be fully realised.
“There is no doubt in anyone’s mind that India’s outreach to Africa, particularly in regard to its facilitation of the membership of the African Union in the G20, demonstrates India’s leadership in the international arena. But more than that demonstrates its long-standing commitment to assist and facilitate development in the third world, in the global south. Africa is a region whose potential is yet to be fully realised,” the UNGA President said in his press conference in the national capital today.
Africa and Europe must strengthen relations (Nation)
MC13 should address existing and emerging challenges to trade (The Financial Express)
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Sustaining growth for South Africa’s vibrant fintech industry (Daily Maverick)
Fintech enterprises frequently leverage cutting-edge technologies like artificial intelligence, blockchain, and big data to develop novel financial products and services that surpass traditional financial institutions in terms of efficiency, accessibility, and customer experience. The fintech market encompasses start-ups, well-established financial institutions, and other companies employing technology to revolutionise and innovate within and outside the financial services sector.
According to Research and Markets, South Africa’s financial services sector is internationally recognised as one of the most sophisticated. In the last decade, this has been complemented by a small but fast-growing fintech sector that is transforming financial services through digitisation, streamlining and/or disruption. Accounting for 40% of all fintech revenue in Africa, Research and Markets adds that South Africa has a relatively mature fintech market with a strong focus on development.
Investors in growth sectors to benefit from two strategically located purpose-build zones (Global Africa Network)
One of the competitive advantages of investing in the Eastern Cape lies in the two Special Economic Zones, one in East London and one at Coega, which hosts a deepwater port. Both SEZs are strategically situated on major transport and shipping routes and provide purpose-built infrastructure for investors wishing to produce and manufacture for the Southern African Development Community and world markets.
The Eastern Cape Development Corporation (ECDC) focuses on a number of specific growth sectors which are all aligned to the Provincial Economic Development Strategy and Provincial Development Plan. Agriculture and agro-processing; Sustainable energy, generation; and component manufacture; Oceans Economy; Automotive; Light manufacturing; Tourism, infrastructure and product; and Film.
Itac rebates for optic fibre cables, electrical apparatus imports (Engineering News)
The International Trade Administration Commission of South Africa (Itac) has created a rebate facility for the import of optic fibre cables and electrical apparatus used in international submarine optic fibre cable infrastructure. This followed Telkom subsidiary Openserve’s 2019 application for the products classified under tariff subheadings 8544.70 and 8536.90.90, respectively.
According to Itac’s ‘Report 614’, published on Tuesday, the optic fibre cables and electrical apparatus for making connection to and in the electrical circuits, both used in the maintenance of the international optic fibre cable system, are not manufactured locally.
The report outlined that optic fibre cables attract a general rate of customs duty of 15% ad valorem, while electrical apparatus attracts a general rate of customs duty of 5% ad valorem.
Burundi economy to grow by 4.3pc in 2024, IMF says (The East African)
Burundi’s economy is projected to expand 4.3 percent this year from 2.7 percent in 2023, helped by improved performance in the agriculture sector, the International Monetary Fund (IMF) said. With a population of 12 million, Burundi’s economy relies heavily on agriculture revenues, especially from tea and coffee.
“Growth is projected to accelerate ... supported by strong agricultural production, productive investment, and the ongoing reforms,” the fund said in a statement late on Monday. Fuel shortages had hampered economic activity in 2023, the fund said. Burundi’s economy is only starting to recover from years of conflict and political upheaval under former leader Pierre Nkurunziza that left key sectors blighted.
Somalia: We are ready to do business with East Africans (The East African)
From the start of his term in office, President Hassan Sheikh Mohamud’s agenda was to join the EAC. In his current tenure, he renewed determination to surmount the internal obstacles that stood in the way of their integration into the Community. “For President Mohamud, the EAC mission has become deeply personal. It represents a commitment to ensure that Somalia, despite its internal challenges, does not lag in the collective progress of the region,” Dr Omer said.
Somalia boasts the longest coastline in Africa, spanning 3,300 kilometres along the Gulf of Aden to the north and the Indian Ocean to the east and south. This geographical advantage presents strategic opportunities with immense potential for fishing. This has attracted the interest of Chinese, Spanish, and Iranian fishermen, both legally and illegally.
“The fisheries potential, and as Somalia improves its security situation, abundant livestock, and the vast arable land of eight million hectares further contributes to the nation’s potential for agricultural development, and food security for the region,” Dr Omer said. Dr Omer said the majority of Somalia legislators support the EAC integration, although a minority may express opposition, “which is expected in any democratic setting”.
Kenya’s solo trade deals irk EAC members, thaws ties with key states (The Star)
Uganda in talks with UAE investment firm over planned $4 billion oil refinery (The East African)
Uganda is negotiating with an investment company led by a member of Dubai’s royal family to develop a planned $4 billion refinery for some of its crude oil, its energy minister said on Tuesday. Uganda in July last year terminated negotiations with a consortium that included a unit of US firm Baker Hughes over its failure to mobilise financing in time. Uganda is counting on the 60,000 barrel-per-day refinery for its nascent hydrocarbons industry.
“Expressions of interest were received from several potential investors and they were evaluated ... following which a memorandum of understanding was signed on the 22 of December 2023,” Minister of Energy and Mineral Development Ruth Nankabirwa said at a news conference.
Uganda expects to start pumping crude commercially in 2025 from fields in the Albertine rift basin in the country’s west near the border with the Democratic Republic of Congo. President Yoweri Museveni’s government wants to process some of its crude domestically to boost employment and benefit from technology transfer.
The Gambia: Minister of Trade gives figures of unemployed youth in Africa (The Voice)
One-third of the 420 million youth aged 15-35 years has been stated to be unemployed and discouraged while another third are vulnerably employed, and only one in six is in wage employment. This was disclosed by the Minister of Trade, Industry, Regional and Employment on Saturday while presiding over the inauguration of the National Employment Technical Committee (NETC), a ceremony held at the Sir Dawda Kairaba International Conference Center, Bijilo on Saturday.
He said according to a recent report on Africa youth face roughly double the unemployment rate of adults with significant variations by country.
Minister Joof, explained that the current unemployment situation in Sub-Saharan Africa including The Gambia, prompted Professor Robert Kappel, to call for a rethink and the deployment of more unconventional measures by African governments and their international partners. He urged them to encourage greater participation of civil society in searching for solutions, particularly trade unions, and also better integration of small and medium-sized enterprises in the global economy.
“He argued that it is unlikely that Africa’s economic growth alone will create the necessary jobs for her population. The impending job crisis as he said can no longer be resolved with traditional methods which have failed to live up to expectations. With the pressing need for a new paradigm shift on the horizon, he recommends a new endogenous economic policy approach in Africa as he believes that employment opportunities must be improved through industrialization, urban-rural linkages, and by connecting foreign investment and local entrepreneurship,” the Minister added.
The resource curse theory: Unboxing the $3.4bn Afrexim deal (Businessday Nigeria)
#BizTrends2024: Africa’s growing role in global trade dynamics (Bizcommunity)
Assessing opportunities for SMEs and entrepreneurs under AfCFTA (GhanaWeb)
The African Continental Free Trade Area (AfCFTA) Agreement is regarded as the leading and most important flagship project under the African Union’s Agenda 2063 to transform the continent of Africa into a global powerhouse. Some opportunities for SMEs under AfCFTA.
Firstly, the AfCFTA initiative has created the opportunity for enhanced access to a larger market. In particular, governments across the continent are aiming to advance trade in value-added production across all service sectors of the African economy. In the process, a common market for the free movement of goods and services will be created leading to an increase in new market opportunities that meet the criteria under the Agreement.
Secondly, AfCFTA has created the opportunity for the free movement of goods and services. This is intended to create a visa-free zone within the AfCFTA countries to allow for easy movement of goods and services.
Thirdly, AfCFTA has created the opportunity for partnership and collaboration across the continent. This opportunity has the potential to create new partnerships in production, marketing, sales, distribution, and customer service among others.
Fourthly, AfCFTA has created the potential for increased access to funding and investment for SMEs. The introduction and adoption of the AfCFTA has opened the African market to a wide range of economic interests in various areas across the global economy.
Fifthly, there is the opportunity for healthy competition that leads to better, and quality products and services.
Business and Political Leaders gear up for 2024 edition of Africa Prosperity Dialogues (Africa Prosperity Network)
Heads of institutions with strong representation on the African continent, captains of industry, top government officials, and members of the diplomatic community have signaled their readiness to attend and contribute to the success of APD 2024, will be hosted by the President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo under the theme; “Delivering Prosperity in Africa: Produce, Add Value, Trade.” The Dialogues will be held at the Peduase Lodge, Aburi Hills in the Eastern Region of Ghana.
“We are not just going to have conversations, we will see deliverables from there [the APD] and whatever comes out of the dialogues, there will be a compact that will be presented to the AU for their consideration,” Gabby Otchere-Darko remarked.
Executive Chairman of the Africa Prosperity Network, Gabby Asare Otchere-Darko, Chief Staff at the Africa Continental Free Trade Area (AfCFTA) Secretariat, Silver Ojakol, on behalf of Wamkele Mene, the Secretary General of the AfCFTA, described the AfCFTA secretariat’s partnership with APD as a strategic development that will go a long way to influence the ability of the AfCFTA to deliver the much-needed prosperity the Africa continent so desperately needs.
“The pillars of regional value chain development, value addition, increased production on the continent in order that we can trade more with each other, and the pillar of trading, even trading across our borders. “The AfCFTA secretariat is very much committed to ensuring that this process (the Africa Prosperity Dialogues), moves forward and delivers prosperity for the continent,” Silver Ojakol said.
South African Finance Minister Enoch Godongwana pledged that South Africa would uphold the core principles of the African Continental Free Trade Area (AfCFTA) in the enlarged BRICS group of developing countries.
The African Continental Free Trade Area Secretariat has unveiled the first ever AfCFTA private sector action plan, with 12 industry giants committing to projects to transform the automotive, agriculture and agro-processing, pharmaceuticals, and logistics and transport sectors.
AfCFTA Secretary General Wamkele Mene admitted that these commitments totalling $130 billion signify a leap in realising the potential of intra-African trade. Godongwana said that the development of AfCFTA and the expansion of the BRICS bloc are the two important developments for the South African economy this year as they are happening simultaneously.
EAC Partner States approve Labour Migration Policy (EAC)
The Directors of Labour and Employment from the EAC Partner States have considered and approved the EAC Policy and Legal frameworks governing labour migration and the outcome of the national and regional consultations during the regional meeting of Experts in Bujumbura, Burundi. The overall aims of the policy are to advocate for the protection of migrant workers; strengthen labour migration governance and maximise the benefits accruing from labour migration
The Policy whose implementation Plan spans from 2025-2030, has ten (10) key Priority areas namely: Labour Migration Governance; Harmonisation of Labour Migration Policies; Protection and Empowerment of Migrant Workers; Access to Social Protection and Social Security Benefits; Mutual recognition of Academic and Professional Qualifications. Other priorities area are: Recognition of Skills Obtained through Informal Training; Promotion of Fair and Ethical Recruitment Practices; Remittances by Migrant Workers; Exchange of Young Workers; and Labour Market Information Systems.
The policy recognises that Partner States have also put in place robust efforts to recognize, certify, and qualify skills acquired through experiential learning. However, a notable gap remains at the EAC level where there is currently no specific mechanism for the recognition of such skills.
Kenya questions jurisdiction of East African court (The East African)
Kenya’s Attorney General Justin Muturi on Tuesday pleaded with the Supreme Court to hear his application seeking the top court’s opinion on the legal consequences and effects of decisions of the East African Court of Justice (EACJ) on the country’s sovereignty. Mr Muturi said whereas there is no express provision in the East African Community (EAC) Treaty conferring upon the EACJ the jurisdiction to interpret the constitutions of partner states, the regional court has in several decisions, interpreted its jurisdiction to include the review of decisions issued by apex courts of member countries.
The Attorney General said he was apprehensive that the exercise of appellate jurisdiction by the regional court over decisions by national courts may pose serious conflict to Kenya’s commitment to the rule of law, because of differing holdings by national courts on one hand and the EACJ on the other hand. He said the conflict exposes the government to a legal dilemma when it comes to compliance with contradictory yet binding decisions from two courts, stemming from differing interpretations based on the same set of facts. Mr Muturi wants the court to clarify which of the two different interpretations should be effected, to facilitate compliance.
Africa’s gas sector is benefiting from a global shift towards greater flexibility (Global Africa Network)
Africa may not possess the vast conventional gas resources of the Middle East or Russia and it may not be able to match the combined conventional and unconventional resources of North America. But it does have a sizeable amount of gas – at least 620-trillion cubic feet (tcf) or 17.56-trillion cubic meters (tcm) ‒ in proven reserves.
That’s more than enough to make Africa a key player in the global gas industry. In fact, it puts Africa in a position to influence the course of the industry, especially in light of long-term trends, including the shift to more flexible contract and delivery terms, along with more recent developments such as the Russia-Ukraine conflict.
The African Energy Chamber (AEC) has outlined our expectations for Africa’s gas sector in the “The State of African Energy Q1 2023 Report”, a new publication available for download on our website. The report covers our outlook on both upstream and downstream trends. Here, I’d like to offer some extra insight into our take on downstream developments – that is, on African liquefied natural gas (LNG) projects, including the countries currently dominating the industry and those preparing to make their presence known.
Will a prolonged rerouting of ships from Suez trigger a new supply chain crisis? (World Bank Blog)
In the near term, the global container shipping industry will likely absorb the shock to capacity caused by attacks on vessels in the Red Sea because demand is generally soft in January and February. However, should the attacks persist into March and April, when global trade experiences a seasonal rebound, capacity constraints could trigger a supply-chain crisis like the one that occurred in 2021-22.
The source of supply-chain stress is different today, but the outcome could be similar. Major freight carriers, including Maersk and Hapag-Lloyd, have suspended operations through the Suez Canal to avoid the Red Sea and are rerouting vessels around the Cape of Good Hope , adding 3,000 to 3,500 nautical miles (5,500 to 6,500 km) and seven to 10 days to a typical trip between Europe and Asia. The extra distance could absorb from 700,000 to 1.9 million standard containers (twenty-foot equivalent units, or TEUs) of shipping capacity, depending on the estimate.
Africa must raise its voice on resolving Red Sea crisis (Daily Maverick)
The Red Sea crisis is now a United Nations Security Council (UNSC) priority, with three meetings held this year already. Following several months of Houthi attacks on vessels in the Red Sea and Gulf of Aden, a coalition of concerned countries launched military operations on 11 January to degrade Houthi maritime capabilities in Yemen.
The attacks are causing many ships to be rerouted around the Cape of Good Hope, with disruptions to supply chains and higher costs. The immediate impact will be on Egypt’s economy, which relies heavily on Suez Canal revenues. A prolonged decrease in canal traffic and income could strain its economy and stability. Egypt hasn’t been outspoken on the issue — perhaps out of fear that its populace would interpret that as tacit support for Israel over Palestine. Africa is already facing difficult economic challenges. The effect on global supply chains will be higher costs and lower availability of goods across the board. Increased shipping costs due to longer routes or heightened insurance premiums can have a cascading effect on global trade and economies. This rise in expenditure trickles down to customers and imperils vital economic growth and recovery.
Third South Summit ends in Uganda with calls for deeper cooperation (Africanews)
The 3rd South Summit ended in Kampala on Monday (Jan. 22). It gathered high-level representatives from nearly 100 countries and heads of United Nations agencies. Uganda’s president called to keep promoting interests of the global south. “That the Group of 77 and China remains united in its pursuit of collective interests at the United Nations. In the inter-governmental processes of the United Nations, We must ensure that priorities of the Group are promoted and defended,” Yoweri Museveni said.
The South Summit is the supreme decision-making body of the Group of 77 (G77), which was established in June 1964. Since the 1990s, China has been coordinating and cooperating with the G77 through the “G77 and China” mechanism which is an important platform for developing countries to unite to strengthen themselves and coordinate to respond to challenges. Over the years, China has joined hands with other member countries to promote South-South cooperation to achieve new and greater progress.
Agriculture negotiations enter final straight as MC13 approaches (WTO)
At the first of this year’s agriculture negotiations meetings on 16-17 January, Ambassador Alparslan Acarsoy of Türkiye, the Chair of the talks, urged delegates to focus “more specifically and concretely” on potential outcomes at the upcoming 13th Ministerial Conference (MC13), which is due to be held in Abu Dhabi from 26 to 29 February. Participants also discussed new or revised submissions on export restrictions on food; agricultural production and trade in net food importing developing countries (NFIDCs) and least developed countries (LDCs); and domestic support to the agricultural sector.
DDG Hill stresses importance of IFD Agreement to foster sustainable development (WTO)
Deputy Director-General Johanna Hill on 22 January opened the webinar on the benefits of the Investment Facilitation for Development (IFD) Agreement, organized by the co-coordinators of the initiative, Ambassador Sofía Boza of Chile and Ambassador Jung Sung Park of the Republic of Korea. The event was the opportunity to hear from, and exchange with, renowned academics and representatives of leading international organizations who shared their experience and provided insights into the relevance and expected benefits of the IFD Agreement.
What the OECD’s latest data tells us about global aid in 2022 (Bond)
The Organisation for Economic Co-operation and Development’s Development Assistance Committee (DAC) recently published its final aid data for 2022, and it’s not good news for the world’s least-developed (LDCs) and low-income countries (LICs).
Their share of total Official Development Assistance (ODA) fell to its lowest level since 1996, while growing debt and increasing interest rates added to a challenging economic picture. Most attention will understandably be on unprecedented in-donor refugee costs, and support for Ukraine bringing headline ODA to new highs, but that’s not the whole story.
When aid spent in provider countries is removed, ODA disbursements to LDCs and other LICs (henceforth LDCs) were 3% lower in 2022 than in 2021. This is partly a result of support for COVID-19 control falling from its peak, but it also reflects a longer term trend. Excluding COVID support, cross-border aid to LDCs has been stagnant for around six years: in 2022, it was roughly $57 billion, broadly unchanged relative to 2017.
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South Africa must build renewable energy momentum, and then move on to other sectors (Engineering News)
The rapid pace at which South Africa is building renewable energy projects, driven by private sector investment, is viewed as positive in the global context, including at the recently held World Economic Forum’s (WEF’s) yearly Davos meeting, said business organisation Business Leadership South Africa CEO Busi Mavuso.
While there is an opportunity for South Africa amid a global context beset by risks, the momentum must continue, particularly the next steps to reform the electricity sector, including the establishment of an independent grid operator, she emphasised in her latest weekly newsletter, published on January 22.
South Africa must also demonstrate that electricity reform is not a one-off, with the logistics sector the next front for reforms to turn around the dismal performance of its ports and rail infrastructure, which are directly constraining economic output.
Mombasa, Dar cargo volumes keep rising with competition (The East African)
Cargo volumes at Mombasa and Dar es Salaam ports have grown amid intensified competition, with Mombasa touting its efficiency while Dar is offering what it describes as favorable terms. Tanzania this week announced the completion of the $420 million Dar es Salaam Maritime Gateway Project (DMGP) and plans to expand its maritime infrastructure as it opened storage for cargo destined to four East African Community (EAC) states. Kenya charges up to $1,200 more per 40-feet container passing through the port of Mombasa.
But the attractive package offered by the Dar port has seen it grapple with efficiency challenges, prompting the management to mull diverting cargo to the Bagamoyo Port.
Tanzania Ports Authority (TPA) Director-General Plasduce Mbossa said they planned the construction of six new berths in Dar and Bagamoyo through public-private partnership. Dar es Salaam Port’s current performance is low compared with Mombasa, Beira and Durban, forcing major shippers to skip it due to higher anchorage costs.
Influx of imports helps slash sugar prices to below Sh200 (Business Daily)
Sugar prices eased by about Sh5 per kilogramme to hit the lowest level in five months last November. The drop was driven by an influx of imports that helped offset a slowdown in local production.
Data from the Sugar Directorate shows prices eased to Sh213 per kilogramme on average during the month compared to Sh218 in October. The price of the sweetener has been on a steady decline from a peak of Sh224 per kilogramme in August, with the price currently below Sh200 in several supermarkets for some brands.
The price drop followed a significant jump in sugar imports, which increased by 51.3 percent to 90,759 tonnes in November, the highest since last March. As a result, the total quantity of sugar supply in the market including that produced locally hit 113,495 tonnes, also the highest since March and an increase of 37 percent from October.
Only eight counties enjoy quality services by the top telcos (Business Daily)
Only eight out of Kenya’s 47 counties on average enjoy the industry-set quality of services from local telcos Safaricom, Airtel and Telkom Kenya, pointing to the underlying gaps that exist in the country’s network coverage, at a time the penetration of mobile devices in the economy has grown to hit 127.8 percent or 64.7 million gadgets as of last September.
Latest data from the Communications Authority of Kenya (CA) shows that it is only in Nairobi, Mombasa, Kiambu, Nakuru, Lamu, Migori, Siaya and Nyamira counties that the three telco firms have attained a combined average of the required 80 percent score in Quality of Service (QoS) compliance levels.
Kenya Railways puts proposed Lapsset SGR cost at $16b; bulk on Isiolo-Nakodok line (The East African)
Kenya will need at least Ksh2.4 trillion ($16 billion) to construct a proposed Standard Gauge Railway (SGR) on the Lamu Port-South Sudan-Ethiopia-Transport (Lapsset) corridor, according to projections by the Kenya Railways Corporation.
According to the parastatal, it would cost Ksh523.05 billion ($3.49 billion) to build a 544.4 kilometre SGR link to connect Lamu and Isiolo and a further Ksh476.7 billion ($3.178 billion) to extend the line from Isiolo to Moyale over a distance of 475.9km.The largest spending would be on constructing the SGR line from Isiolo to Nakodok town on the border between Kenya and South Sudan over a distance of 753.2km at a cost of Ksh664.65 billion ($4.431 billion).
Kenya Railways has estimated that a further Ksh358.8 billion ($2.392 billion) will be required to link Isiolo and Nairobi via SGR over a distance of 278.6km and a further Ksh385.95 billion ($2.573 billion) for the 325.35km stretch between Lamu and Mariakani.
Uganda spending cuts, red tape add to contractors’ woes (The East African)
Spending cuts and delays in approving contractors’ claims pushed government arrears to more than Ush800 billion ($208 million) last year in a sign of tougher times faced by local engineering contractors. Domestic arrears accumulated by the Uganda National Roads Authority (UNRA) rose from Ush471.827 billion ($122 million) in financial year 2021/22 to Ush621.496 billion ($161 million) in financial year 2022/23.
Unpaid invoices held by UNRA, and the Ministry of Works and Transport have reportedly crippled local contractors’ operations amid severe cashflow constraints reflected in settlement of routine expenses such as employee wages, rent, bank loan repayment obligations, tax bills and construction material costs, The EastAfrican has learnt.
Recent budget cuts by various government ministries and departments are cited for the massive arrears incurred during the previous financial year in spite of huge budget allocations made to the works and transport sector.
Due to delayed government payments, some contractors have opted to undertake construction projects belonging to private organisations that offer a revenue margin of around 25 percent per project. Small construction projects financed by experienced individual investors in the housing sector usually offer a profit margin of five percent because of tight budgeting habits.
What you should know about Nigeria’s $3.3 billion crude oil loan from Afrexim Bank (Business Insider Africa)
Nigeria possesses over 35 billion barrels of untapped proven reserves, presenting an opportunity to generate necessary funding through methods such as forward sale financing. Lately, the $3.3 billion crude oil pre-payment loan has generated significant public and stakeholder interest recently, prompting NNPCL to address some related questions.
In forward sale financing for crude oil, an SPV agrees with NNPC Limited to sell future crude oil. The SPV secures funding from a bank based on the agreed sale value, often using future crude oil as collateral. NNPC Limited uses the sale proceeds for operational needs, while the SPV fulfils its financing obligations and returns any surplus to NNPC Limited.
Forward-sale contracts enable resource-producing companies like NNPC Limited to receive significant upfront funding for new projects before production and export. The funding can then be used for investments in existing and future resources, leading to increased oil and gas production and higher exports, resulting in more dollars and foreign currencies entering the country.
IMF reveals $400m exposure in Kenya fuel import deal (The East African)
The International Monetary Fund has estimated the taxpayers exposure to the fuel import scheme at around $400 million, which means the government-to-government (G-to-G) deal is not risk-free as touted. The IMF estimates the state’s contingent liabilities stemming from the letters of support issued to participants in the supply chain at 0.4 percent of GDP, said the IMF in the latest country report under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) Arrangements. A contingent liability is a potential loss that may occur in the future depending on the outcome of a specific event.
In the case of the G2G mechanism launched in April 2023, the IMF says taxpayers are exposed to calls on the national budget in case prices at the pump are not adjusted to fully pass through any forex losses to the final consumers.
The African Development Bank and the United Kingdom have announced the selection of the Inclusive and Sustainable Development of the Cereal Sector Project in Tunisia, as a standard-setting project under the Room to Run Sovereign transaction (R2RS).
Approved in July 2023, this cereal sector project in Tunisia will strengthen the resilience of the cereals sector to external shocks and climate change. The project will benefit up to 250,000 cereal farmers in the country, boosting their food security and self-sufficiency. It is estimated that up to $35 million of the $87 million Bank financing corresponding to the climate adaptation component of the loan, has been unlocked by the UK Government guarantee, which increased the Bank’s overall lending capacity.
UN urges Ethiopia, Somalia to talk to solve dispute (Garowe Online)
United Nations Secretary-General Antonio Guterres on Sunday urged Addis Ababa and Mogadishu to open dialogue to settle their dispute over Ethiopia’s maritime deal with the breakaway region of Somaliland. ‘We are always guided by our principles and our principles are related to the unity, the sovereignty and territorial independence of countries, including Somalia,’ Guterres told a press conference at the G77 plus China summit in the Ugandan capital.
Nations urged to prioritize AfCFTA implementation (UNECA)
Africa renews its call to action as experts and government representatives gather to discuss the use of national and regional strategies for effective implementation of the African Continental Free Trade Agreement (AfCFTA). The conference, titled “AfCFTA Implementation Strategies: Towards an Implementation Peer Learning Community,” took place from January 15 to 17, 2024, and was organized by ECA in partnership with the AfCFTA Secretariat and UNDP.
Speaking at the conference in Nairobi, Kenya, Stephen Karingi, Director of Regional Integration and Trade at the Economic Commission for Africa (ECA), emphasized the transformative potential of AfCFTA for the continent.
he highlighted that the realization of this promise hinges on the effective implementation of the commitments undertaken by AfCFTA State Parties. Mr Karingi called on AfCFTA State Parties to adopt an urgent and expedited approach to implementing AfCFTA strategies, noting: “Implementation is primarily a national responsibility. Therefore, Governments must also be ready to finance the complementary policies and investments, especially from domestic resources, for its success.” This, he added, will foster the “much desired diversification of African economies, creating resilience to withstand economic, health and food security shocks.”
ECA Preparations for African Electric Mobility Regional Value Chains Kick-off in Rabat (UNECA)
The ECA office for North Africa launched on 16-19 January 2024 in Rabat (Morocco) a workshop on “Developing Regional Value Chains in E-Mobility for Zambia, Morocco, and the DRC.” This event was organised as part of an ECA project aimed at fostering the emergence of African electric mobility value chains by helping policy makers from the three countries acquire the technical know-how required to develop them.
“By fostering a collaborative ecosystem for the production, distribution, and maintenance of electric vehicles and their components, the Electric Mobility Regional Value Chain can create opportunities for employment creation, skills development and entrepreneurship, along with facilitating progress towards SDGs in Africa, said Zuzana Brixiova Schwidrowski, Director of the ECA office for North Africa at the meeting.
Beijing boosts use of Chinese yuan in Africa as nations move away from US dollar (South China Morning Post)
But it was in the southern nation of Zambia where BOC established its first African subsidiary, allowing customers to make deposits in and even withdraw Chinese yuan. Branches in both Lusaka and Kitwe, a mining town in the country’s northern Copperbelt region, serve the growing number of Chinese mining firms and immigrants. Recently, the lender also announced that its Zambian division would help to boost the use of the yuan for trade as part of China’s efforts to promote the Chinese currency in Africa.
“Actually, Bank of China is a local clearing bank and we will earnestly act upon our responsibility and leverage on our role in Zambia to support other African countries to provide holistic products and services related to the yuan and to promote the use of the yuan in bilateral trade and economic activities,” Lin said during his visit to Lusaka.
Africa in debt spiral as restructuring efforts drag on (The East African)
While the explosion of debt is throwing a shadow over global economic growth, experts warn that Sub-Saharan Africa, where several countries are already in default, is experiencing its worst-ever crisis. The rise in interest rates and over-indebtedness is already crimping the ability of countries to finance their development, as a number of African leaders emphasised at appearances at the World Economic Forum in Davos.
“Many developing countries in a desperate need for cash injection in their economies rushed to these low-cost loans, in markets with no rules or regulation,” said Kenyan economist Attiya Waris, who also serves as an independent expert for the United Nations.
Africa at Davos 2024: What the leaders and experts had to say (WEF)
Davos 2024 presented a timely opportunity to ring the alarm and delve into the policy and public-private partnerships that could rapidly scale the African economy. The meeting saw a keen focus on economic growth from African delegates and the launch of the Private Sector Action Plan, a first-of-its-kind initiative between the World Economic Forum and the African Continental Free Trade Area (AfCFTA) Secretariat. The initiative is comprised of 40 global companies.
Speaking at a session where panellists discussed the schism between the global North and South, Rwandan President Paul Kagame alluded to capacity building as one way to ensure that Africa remains up-to-speed with global developments, especially in times of crisis. We cannot address global inequality by mitigating crises as they happen. We need to involve developing countries from the beginning. There are tools available for Africa to deal with crises as well.
Enoch Godongwana, South Africa’s Minister of Finance, made a case for BRICS, the recently-expanded intergovernmental organization that comprises Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, the United Arab Emirates, Iran and Ethiopia. “The key issue is how do we mobilise savings in the south in order to ensure a better development agenda? That’s the most critical part. To do this there needs to be reform of the international, multilateral institutions,” he said.
According to a World Economic Forum’s Insight Report - AfCFTA: A New Era for Global Business and Investment in Africa - the free trade area, one of the world’s largest by number of people and economic size, is projected to host 1.7 billion people and oversee $6.7 trillion in consumer and business spending by 2030. Speaking at the African Economy of Scale session, Wamkele Mene, Secretary-General of AfCFTA, argued that the agreement has laid the ground for Africa’s potential to be unleashed.
Energy transition of fishing fleets Opportunities and challenges for developing countries (UNCTAD)
As more countries commit to net-zero emissions and include ocean-based climate action in their nationally determined contributions (NDCs), the energy transition of the fishing industry and its fleets is becoming a pressing issue. The fisheries sector is a contributor to greenhouse gas (GHG) emissions because of its heavy reliance on fossil fuels.
With agriculture and tourism, the fisheries sector is one of the three economic sectors most vulnerable to climate change. The main causes for concern are rising sea levels, warmer water temperatures and ocean acidification – and their impacts on fishing activities – particularly in least developed countries (LDCs) and small island developing States (SIDS).
While non-motorized fishing vessels are emissions free, artisanal fishers face fish stocks decline because of climate change. They need public support to adapt to climate change and improve their livelihood. On the other hand, motorized fishing vessels need support in shifting to renewable and clean energy resources. This applies especially to small-scale fishers. Policies to incentivize or mandate the energy transition of the fishing fleet cannot be designed without considering trade-offs and co-benefits.
WEF2024: What does the future hold for global trade? (Ventures Africa)
Trade makes the world go round. This sector is as old as time and has always been a core determinant of who gets a seat at the “World Powers” table. When global trade is troubled, the world is unsettled. That’s why it became worrisome when the World Trade Organisation halved its global goods trade forecast for 2023 to 0.8%. It’s a lot lower than the trend over the last two decades. COVID and the wars in Ukraine and the Red Sea have caused continuous supply shocks and made trade challenging. So, it’s no surprise that inflation, poverty and unemployment rates have risen in many countries.
At the World Economic Forum 2024, Dr Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, said the world economy won’t experience recovery without trade and investment. The last time the global economy had high growth, trade was the engine behind it. Yet, she’s “less optimistic” about this year’s outlook for the sector. “…Going into this year, we were more optimistic, and we projected 3.3% [growth]. But the concerns about what is going on in the Red Sea and the Suez Canal and… climate change drought in the Panama Canal… make us slightly less optimistic,” she said during a panel held on Thursday, January 18th. “Nevertheless, it’s still better than last year.”
Red Sea shipping attacks pressure China’s exporters as delays, costs mount (Reuters)
The rupture of one of the world’s busiest shipping routes has exposed the vulnerability of China’s export-reliant economy to supply snarls and external demand shocks. In a speech at the World Economic Forum in Davos on Tuesday, Premier Li Qiang emphasised the need to keep global supply chains “stable and smooth”, without referring specifically to the Red Sea.
Some companies, such as U.S.-based BDI Furniture, have said they are relying more on factories in places such as Turkey and Vietnam to mitigate the impact of the disruptions, adding to recent moves by Western countries to reduce dependence on China amid geopolitical tensions.
At stake for China now is the danger that other firms will follow suit and reassess their de-risking strategy, opting potentially to shift production closer to home, an approach known as “near-shoring”. “If it’s permanent, and it could be permanent, then the whole mechanism will be readjusted,” said Marco Castelli, founder of IC Trade, which exports Chinese-made mechanical components to Europe. “Some (companies) may also consider moving more production to India, which is one week closer to Europe. Companies need to reevaluate everything.”
Mike Sagan, the Shenzhen-based vice president for supply chains and operations at KidKraft, said that “A lot of suppliers, they’re screaming about money today.” A worry for larger manufacturers, he said, is the snowball effect on smaller suppliers with tight margins, as they would be among the last to receive payments but are critical to the supply chain.
Europe, Africa crude market tightens on Red Sea disruptions, China demand (Engineering News)
Surge in wheat shipments bypassing Suez Canal, WTO Wheat Dashboard finds (WTO)
An increasing number of shipping vessels has been rerouted in the past two weeks to avoid the Suez Canal amid heightened security risks, causing a nearly 40% year-on-year drop in shipments of wheat through the Canal, to around 0.5 million metric tonnes, according to the WTO Wheat Dashboard.
It is estimated that around 76 million metric tonnes of grains, oilseeds and oilseed products are shipped annually from the European Union, the Russian Federation and Ukraine to Asia and Eastern Africa, representing 17% of global trade in those commodities.
Guterres urges G-77 and China to drive momentum for global governance reform (UN News)
More than 130 countries are members of the bloc - the largest grouping of the global South, representing 80 percent of the planet’s population – and their solidarity and partnership are essential to building a sustainable, peaceful, and just world for all, he said. “Let us face it: those that benefit most from the present global governance system are unlikely to lead its reform. So, momentum for change must come from you,” he told leaders. “I urge you to keep driving these efforts forward.”
He outlined many of the challenges facing the world today, including achieving the Sustainable Development Goals (SDGs) by the 2030 deadline as well as ensuring economic recovery from the COVID-19 pandemic, respect for human rights, and climate action.
“While South-South cooperation is strong and deepening, it does not replace the need for the respect of the commitments of the global North – for sustained engagement to reduce poverty and inequality, support growth, and build resilience in developing countries,” he said.
Ranked: The Most and Least Developed Countries in the World, 2024 (CEOWORLD magazine)
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The Kenyan economy remains resilient against a challenging global backdrop even as it recovers from the legacy of the COVID-19 pandemic and the worst multi-season drought over the past two years. The economy expanded by 5.6 percent y/y in the first nine months of 2023, driven by a strong recovery in agriculture which also helped lower both overall and food inflation. Non-agricultural growth, however, slowed amid tighter policies.
The external current account balance has improved as real exchange rate depreciated and imports contracted. Exports and remittances remained resilient. While foreign exchange reserves remain adequate, they declined in the second half of 2023 amid debt service payments and limited external financing inflows.
The near-term outlook is one of continued resilience with growth projected at around 5 percent in 2024 amid ongoing adjustments in the fiscal policy and external accounts. Kenya’s medium-term prospects are positive and could be buttressed by improving competitiveness, inclusivity, and enhancing governance and anti-corruption framework to support a vibrant and market-driven economy.
Forex Crisis: ‘$2.25bn Afreximbank Disbursement Inadequate’ (Leadership News)
The Association of Bureau De Change Operators of Nigeria (ABCON), has stressed that the $2.2 billion released by the African Import Export Bank (Afrexim bank), is not enough to stimulate the market in view of the persistent foreign exchange crisis in the country. National president of ABCON, Aminu Gwadabe, lamented that due to the depreciation in the value of naira, some Nigerians are now keeping their savings in the United States dollars.
According to him, “For now, it’s a difficult situation which is also creating panic in the market because the value of the naira is eroding and because of that, a lot of people prefer to keep their savings in dollars,” he disclosed.
Speaking on the $2.2 billion crude oil prepayment facility, Gwadabe said, “the $2.2billion Afrexim bank crude prepayment facility is a welcome development but I don’t think it’s enough to stimulate the market considering the situation because if we put $2.2billion into the market, we have been seeing demand in the I&E window alone ranging from $150million to $250million daily so, in 10 days, the $2.2billion will be exhausted. Speculators will speculate and we will run it out between 10 to 15 days.”
Zambia Plans New Railway to Spur Trade With Africa’s Great Lakes (BNN)
Zambia plans to build a new rail connection to link a Lake Tanganyika harbor to an existing line that runs to neighboring Tanzania, boosting trade with three other nations that share borders with the world’s longest freshwater lake.
The southern African nation’s Transport and Logistics Ministry asked companies to express interest in financing, building and running the concession that will be about 192 kilometers (119 miles) long. The tracks will connect to the Tanzania Zambia Railway, or Tazara, at Nseluka in northern Zambia and run to Mpulungu harbor on Tanganyika, the ministry said in a statement published Thursday in the state-owned Times of Zambia.
Malawi Joins As Sixth Member State Of The Central Corridor, Enhancing Regional Trade And Connectivity (Railways Africa)
The Republic of Malawi’s accession to the Central Corridor Transport Facilitation Agency (CCTTFA) on 1 December 2023 represents a pivotal moment in enhancing regional trade and connectivity. This momentous event took place during the CCTTFA Extraordinary Inter-state Council of Ministers meeting in Dar es Salaam, Tanzania. The Malawian delegation, spearheaded by the Honourable Jacob Hara, Minister of Transport and Public Works, formally signed the agreement, thereby inducting Malawi as the sixth member state of the Central Corridor.
The Central Corridor, a key multimodal transport network, plays a vital role in linking landlocked countries in the region to the Indian Ocean port of Dar es Salaam. It stands as a cornerstone for promoting trade and development across the continent. With Malawi’s inclusion, the corridor’s reach extends across six nations: Tanzania, Burundi, Rwanda, Uganda, the Democratic Republic of Congo, and now Malawi. Malawi’s strategic decision to join the Central Corridor is expected to significantly boost its access to maritime routes and regional markets.
Africa welcomes the world: Simplified visa regimes drive tourism and trade (Dailynewsegypt)
2023 saw a momentous shift in Africa’s visa landscape, with most countries significantly liberalising their entry requirements. Rwanda and Kenya have joined Gambia, Benin, and Seychelles in offering visa-free access to all African travellers, dismantling a historic barrier to regional integration.
Kenya’s new electronic travel authorisation (ETA) system, launched in January 2024, has already received 10,000 applications. “Processing is smooth,” assures Julius Bitok, head of the immigration department, “with approvals based on individual travel schedules.” Kenya’s ambitious goal? More than doubling tourist arrivals – from 2 million to 5 million annually – thanks to the streamlined entry process. This is reported by The Herald, a TV BRICS partner.
The benefits extend far beyond tourism. As Marie-Laure Akin-Olugbade, Vice President of Regional Development, Integration, and Business Delivery at the African Development Bank Group, states, “Simplified visa regimes not only facilitate travel but also foster trade in goods and services, cross-border investment, and broader prosperity.”
SADC invests in a solid synergistic partnership with customs and business stakeholders (SADC)
The Southern African Development Community (SADC) Secretariat will be launching the Regional Customs to Business Forum (RCBF) in Johannesburg, South Africa on 19 January 2024 to bolster inclusiveness in policy formulation, collaboration and advocacy in order to advance the implementation of regional cross border solutions and participation in the regional, continental and global economy. This launch resonates with the growing trends to strengthen export-oriented value chains through capacity needs, financing, and optimised technology efficiency within the customs and private sector ecosystem.
The main objective of the Regional Customs to Business Forum (RCBF) is to provide a platform for Customs to Business (C2B) to leverage policy advocacy opportunities within the Region that expedite implementation of Regional trade agreements and address trade facilitation initiatives which support impactive movement of goods across the SADC Region. The Forum aims to inform, advise, identify, discuss, and present options for addressing identified impediments to the flow of goods across borders in the SADC region.
Shettima Laments Africa’s 3% Share of World Trade, Wants Indices Reversed, Ramped up (This Day Live)
Vice President Kashim Shettima, has implored African leaders to work towards ramping up the total $3.1 trillion Gross Domestic Product (GDP) of countries on the continent, amounting to a paltry three percent of the overall global GDP. According to him, “the total Gross Domestic Product of African countries taken together is barely $3.1 Trillion, which is less than 3% of world GDP”.
He said: “African trade still hovers at 3% of world trade. These indices must be reversed and ramped up. I believe this is one of the key concerns of Africa Economy of Scale. “It must be borne in mind that African economies are still largely primary and basic in nature, with considerable dependencies on the global economy. Most countries on our continent are still known for their export of raw materials, minerals and food crops. African economies understand that we must begin to add value to primary products like cash crops and step up to secondary and tertiary product manufacturing,” the VP stated.
Multilateral collaboration is indispensable to unlocking Africa’s potential (WEF)
Many African nations are particularly vulnerable to the effects of a fragmented geopolitical environment, and it will require an engaged community of nations to help Africa advance. Trade restrictions have surged, particularly in Africa, impeding the movement of goods and services. This makes it even more difficult for low-income countries to overcome high inflation and interest rates to make progress on poverty reduction. We have to bolster a rules-based, equitable, sustainable, and transparent multilateral trading system, with the World Trade Organization (WTO) at its core, if we want to restore growth and job creation.
Borders between African countries rank among the most restrictive in the world, hindering intra-African trade and investment. The African Continental Free Trade Agreement (AfCFTA) is an important pathway to break these barriers, unlocking the continent’s economic potential by creating a single, continent-wide market that unites 54 countries with a combined population of 1.3 billion and a GDP of $3.4 trillion. This could boost trade and investment, making the continent more attractive for business partners to integrate Africa into regional and global value chains. It can also create millions of jobs for Africa’s growing population, especially its women and youth.
AfCFTA to introduce Digital Trade Protocol to further boost Africa’s economy (3news)
The African Continental Free Trade Area (AfCFTA), is set to introduce a Digital Trade Protocol to further boost Africa‘s economy. This was revealed by Secretary General of the African Continental Free Trade Area (AFCFTA), Wamkele Mene today January 17 at a Wall Street Journal event dubbed ‘Trade’s Transformative Power’. Mr Wamkele also spoke about Africa’s trade evolution.
In his remarks at the Alliance for a Green Revolution in Africa (AGRA) session at the ongoing 2024 Edition of the World Economic Forum Annual Meetings being held from Tuesday, 16th January, to Friday, 19th January, Mr Wamkele Mene said that a major hindrance to intra-African trade is the high tariffs on agricultural products. He stated that the continent’s significant food market, with $50 billion in annual imports, is highly fragmented.
An Action Plan to Accelerate Global Business and Investment in Africa (WEF)
Africa is undergoing profound changes as the region becomes more integrated, accelerated by the AfCFTA – a single market representing 1.7 billion people and $6.7 trillion in consumer and business spending by 2030. The full implementation of the AfCFTA agreement is projected to increase real incomes by 7% or nearly $450 billion.
Projects profiled in this action plan include the mobilization of financing to upgrade infrastructure in the transport and logistics sector, the development and deployment of green technologies in the automotive sector, the expansion of initiatives to move more of the agriculture value chain to the continent, and commitments by pharmaceutical companies on workforce, innovation, finance, policy and inclusivity.
Taken together, these ambitious commitments from leading companies on the continent signal to potential investors that investment in Africa can look forward to a future of boundless innovation and inclusive African prosperity.
Africa’s resources must power continent’s development (GBC)
Mr Silver Ojakol, Chief of Staff, African Continental Free Trade Area (AfCFTA) Secretariat, has challenged business and political leaders to be intentional in utilising the Continent’s vast natural resources for its development. He noted that for years, Africa’s resources had powered global development at the detriment of the continent and its people, and asked business and political leaders to change the narrative through AfCFTA.
He said this at a press briefing in Accra on Monday, January 15, ahead of the 2024 Africa Prosperity Dialogues, scheduled for January 25 to 27 at Aburi in the Eastern Region. “There is an urgent need for us [Africa] to use our vast natural resources and the demographic advantage for industrialisation, improved infrastructure and energy solutions that will enhance and reduce production cost,” he said.
The Pan African Chamber of Commerce and Industry (PACCI) participated in this week’s "Conference on AfCFTA Implementation Strategies: Towards an AfCFTA Implementation Peer Learning Community," urging greater action on economic diversification and private sector engagement to unlock the full potential of the African Continental Free Trade Agreement (AfCFTA) for Small and Medium-sized Enterprises (SMEs).
While acknowledging the importance of trade and investment liberalization, PACCI stressed that it alone will not be sufficient to ensure significant SME participation in intra-African trade and investment. They emphasized the need for complementary policies fostering economic diversification and supporting entrepreneurship to empower SMEs to take advantage of the AfCFTA.
AfCFTA: Women-led businesses to get 10% subsidised interest rate (The Business & Financial Times)
Women-led businesses in the country interested in exporting under the Africa Continental Free Trade Area (AfCFTA) will be given bank loans at a subsidised interest rate of 10 percent, Ashanti Regional Director, Ministry of Trade and Industry, Mamuda Osman, has said. According to him, this is part of governments effort to support women in business so they can export to the continental market, since the role of women in nation building must not be underestimated.
Delivering a keynote address at the Ghana National Chamber of Commerce/GIZ Trade Hub conference for GNCCI Women in Kumasi, Mr. Mamuda added that there are certain protocols reserved for women which the next Africa Union (AU) meeting will ensure are adopted.
The main objective of the African Continental Free Trade Area is to eliminate trade barriers and boost intra-Africa trade. This column argues that implementing the Trade Facilitation Agreement’s provisions would be a powerful complement to the free trade area’s tariff-reduction agenda. A realistic implementation of TFA measures could reduce time in customs for imports by 2.7 days for exports by 1.7 days. These reductions in time translate into a tariff ad-valorem equivalent reduction in the range 3.6–7% for imports and an 8.1% extra growth for exports.
Migration, a Catalyst for Sustainable Development in Africa’s Host and Home Countries (UNECA)
The ECA Office for North Africa and the Ministry of Foreign Affairs and Senegalese Abroad initiated a workshop on the contribution of migration to development in Africa in Dakar (Senegal) on Wednesday 17 January 2024.
“Migration can be an important pillar for the development of African economies if one can provide a better orientation of expatriates’ remittances towards investments and the financing of development in African countries,” said Khaled Hussein, head of the Sub-regional Initiatives Section at the ECA Office in North Africa. Intra-African migration is a key component of regional integration, hence the need for countries to develop public policies that benefit migrants, their countries of origin and their host countries.
The Future of Growth Report 2024 (WEF)
The Future of Growth Report 2024 introduces a multidimensional framework to assess the quality of economic growth across 107 countries globally. It characterizes nations’ economic growth across four dimensions: Innovativeness; Inclusiveness; Sustainability; and Resilience. The data and analysis presented may be used by a wide range of stakeholders to identify areas to improve, trade-offs to resolve or synergies to exploit. While every country has a unique growth pathway shaped by a wide range of circumstantial factors, the report highlights seven distinct “growth pathway archetypes,” with the aim to identify countries most closely related in their growth characteristics and facing similar constraints and opportunities.
Trading Towards Sustainability: The Role of Trade Policies in Indonesia’s Green Transformation (World Bank)
Climate change–and efforts to mitigate and adapt to it–will affect global flows of trade and Indonesia’s ability to transition to a more environmentally sustainable economy on its path to become a high-income economy is, therefore, interlinked with trade policy. A crucial challenge lies in harmonizing these with sustained economic growth, yet both goals can be reached. Although trade flows facilitate emissions, they are also a critical part of the solution, including through trade in environmental goods (EGs) and plastic substitutes‒with important economic spillovers.
DDG Ellard highlights members’ negotiating priorities and WTO reform issues ahead of MC13 (WTO)
Deputy Director-General Angela Ellard on 17 January discussed the negotiating priorities for WTO members in the run-up to the 13th Ministerial Conference (MC13) in Abu Dhabi next month and areas where members are considering reform of the WTO at a seminar on the WTO organized by the Washington International Trade Association.
Global foreign direct investment grew 3% in 2023 as recession fears dwindled (UNCTAD)
Global foreign direct investment (FDI) defied earlier expectations for 2023, growing by 3% and finishing the year at an estimated $1.37 trillion, according to UNCTAD’s latest Global Investment Trends Monitor published on January 17. However, the report highlights a key nuance – the overall uptick was driven mainly by a handful of European “conduit” economies, such as Luxembourg and the Netherlands, which often act as intermediaries for FDI destined for other nations.
The report’s sectoral analysis for 2023 showed an uptick in project numbers in sectors that rely heavily on global value chains, including automotive, textiles, machinery and electronics. The report raised concerns about the renewable energy sector, which saw a 17% decrease in new international project finance deals and a 10% decline in their value. This marked the first decline since the Paris Agreement in 2015.
Global Supply Chain Forum 2024 kicks off innovation challenge (UNCTAD)
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Structural reforms remain key for SA economy (SAnews)
Finance Minister Enoch Godongwana has reaffirmed South Africa’s commitment to engaging in structural reforms that will foster an environment fertile to economic growth and competitiveness. The Minister was speaking during a panel discussion at the World Economic Forum (WEF) Annual Meeting held in Davos, Switzerland.
Structural reforms in South Africa are targeted at – among other things – electricity, infrastructure, water and logistics, and are driven by Operation Vulindlela. The objectives of the reforms are aimed at: Stabilising the electricity supply. Reducing the cost and increasing the quality of digital communications. Providing sustainable water supply to meet demand. Providing competitive and efficient freight transport. Fostering a visa regime that attracts skills and grows tourism.
Kenya and Tanzania vow to boost regional integration (The Standard)
Kenya and Tanzania have resolved their differences and pledged to work together for the benefit of their people and the region. This was the message from Prime Cabinet Secretary Musalia Mudavadi, who also doubles as the Foreign and Diaspora Affairs Cabinet Secretary, during his meeting with his Tanzanian counterpart Dr January Makamba in Kampala, Uganda during the Ministerial meeting of the 19th Non-Aligned Movement (NAM) Member States Summit.
The meeting comes a day after the aviation restrictions controversy between Kenya and Tanzania was resolved following diplomatic engagements between Mudavadi and Makamba aided by Transport Ministries of both countries.
IMF Report: Tanzania least indebted African nation (Tanzania Daily News)
Tanzania is the leading least indebted nation in Africa, the International Monetary Fund (IMF) has stated. According to the IMF’s latest report, though the region grapples with economic challenges, Tanzania emerges as a beacon of fiscal responsibility, boasting a debt-to-GDP ratio of 41.8 per cent. The accomplishment reflects a prudent and balanced monetary approach that contributes significantly to the country’s economic stability and resilience.
Commenting on the report, Economist, Dr Isaac Safari said by being listed as the least indebted country in Africa by IMF, Tanzania still has ability to obtain loans from development funders and service them. “Debt are not sins as long as they stimulate production which can generate income for repaying them rather than borrowing to repay previous loans,” he said. He called upon the government to diversify production in an effort to make a shift from the lower middle income status to the upper middle income whereby ultimate inclusivity of all citizens in development will be realised.
Ghana: Momentum builds on external debt restructuring efforts (The Business & Financial Times)
The government is urgently seeking to build on the momentum of its debt restructuring efforts, following the recent agreement with official creditors to restructure debts extended to the country up until December 2022. Having overcome this hurdle, Reuters reports that government officials will re-engage with its international bondholders from next week, seeking to continue discussions after Marrakech meetings last October concerning its US$13billion in outstanding Eurobonds.
Government reached a deal to restructure US$5.4billion of loans with its official creditors. The agreement with bilateral lenders including China and France was key to unlocking new International Monetary Fund (IMF) financing and will allow Ghana to access another US$600 million under its US$3billion bailout programme. The debt is being restructured under the Common Framework, a process set up during the COVID-19 pandemic by the Group of 20 economies.
“We don't fix customs clearing rates” – Customs CG (Nairametrics)
The Comptroller General of the Nigeria Customs Service (NCS), Bashir Adeniyi has said that the Service does not fix rates for custom payment, and as such the fluctuations in import duty rates over the past few months cannot be attributed to the Service. The Comptroller General noted that the merger of various sectors of the forex market by the current administration has had repercussions on how Customs conducted its operations as it could no longer use rates independently unless specified through the merged windows.
“The new administration has not made any pretension towards the fact that it was going to take several bold decisions and reforms aimed at repositioning the Nigerian economy and bringing sustainable change over a long period. One of the reforms that have been undertaken is the merger of the various sectors of the forex market.
“This has repercussions on our operations. What it means is that we can’t use independently that are not specified through these merged windows. What we do is just to update our system and follow what is prescribed for us by the regulatory authority for monetary affairs, which is the Central Bank of Nigeria,” the CG explained.
On Wednesday 10 January, the Ivorian Prime Minister, Robert Beugré Mambé, opened Abidjan’s fourth bridge, the “Y4” bypass, and the urban highways of Civil Prison and Dabou respectively, all built with funding from the African Development Bank Group – to traffic. An enthusiastic crowd joined several members of the government, heads of institutions, Bank Group executives and representatives of participating private sector construction firms for the opening of the bridge and roads. The roadworks are expected to ease traffic congestion in Côte d’Ivoire’s six-million-strong financial capital, known for being among the most gridlocked cities in Africa.
Museveni rallies investors at EAC business forum in Kampala (New Vision)
President Yoweri Museveni has urged the Ugandan business community and investors in the East African Community (EAC) to seize the opportunity of the 19th summit of the Non-Aligned Movement (NAM) and collaborate with their colleagues outside the region. He said this will enable them to optimize value addition, expand partnerships that enhance technology, skills transfer, financing, promote standards and further deepen access to the global market. The three-day forum, which started on Monday, is running concurrently with the NAM Summit under the theme: “Unlocking East Africa’s potential on the global stage.”
WEF2024 Day 2: How can Africa’s economy scale? (Ventures Africa)
During a live session titled An African Economy of Scale, at this year’s Annual Meeting in Davos, Switzerland, WEF brought together African economy leaders to discuss the potential of frictionless African trade as a major player in global supply chains. “One way to lift the growth of any economy is to relieve trade,” Mary Vilakazi, Chief Executive Officer-designate, FirstRand Ltd, rightly commented on the potential of frictionless African trade.
This year, the AfCFTA aims to accelerate implementation. 31 countries will be participating in the guided trade initiatives, applying the rules of the AfCFTA for trade. Wamkele Mene, Secretary-General, African Continental Free Trade Area Secretariat, further highlighted that this year, the intensified effort will be on the services sector – sectors like tourism, and banking – within the framework of the guided trading initiative and its enabling tools. One is the enabling tools intended to accelerate the AfCFTA is the pan-African payments and settlements system, a system launched by the African Export-Import Bank (Afreximbank) and the AfCFTA Secretariat to enable businesses and individuals in Africa to make and receive payments in their local currencies across the continent. “If you are in Ghana and you want to buy from Kenya, you have to buy a third currency. That cost of currency convertibility has constrained growth in Africa,” commented Mene.
Africa’s gold trade landscape undergoes transformation amidst global geopolitical shifts (Africanews)
Africa finds itself at the crossroads of a significant transformation in the global gold trade. The relocation of Russian gold trading to Hong Kong, strategic alliances such as Mali and Russia’s gold refinery agreement, and the surge in gold prices are reshaping the continent’s role in this crucial industry. Russian gold trading’s shift to Hong Kong is driven by US sanctions and a crackdown in the UAE. This move raises questions about Africa’s stability as a gold trade hub. The rise in gold prices, influenced by a weakened US dollar and geopolitical uncertainty, adds complexity to the evolving landscape.
Sustainable initiatives to manage fish wastes and conserve Africa’s largest lake (CGTN Africa)
Around 4 million individuals in Kenya, Tanzania, and Uganda collectively depend on Lake Victoria, the largest lake in Africa, for their livelihoods. According to the African Great Lakes information platform, nearly 200,000 people are directly employed in activities related to the lake. However, the lake’s crucial natural resources are under threat due to the significant amount of fish waste being discarded into its waters on a daily basis.
The Kenya Marine and Fisheries Research Institute reports that fishing activities contribute approximately 150,000 tonnes of fish waste annually, posing a looming environmental threat to Lake Victoria. In response to this issue, communities surrounding the lake are taking the lead in implementing environmentally sustainable methods to minimize and eventually eliminate these wastes.
Joseph Amoke, an officer from the Department of Agriculture and Fisheries and a coordinator at the market says their initiative involves processing fish remains, including skin, scales, fish bones, and offal, for both human consumption and as raw materials for livestock feeds. He adds that these waste materials primarily originate from fish filleting companies specializing in fish steaks.
B2B E-commerce platform launched to enhance Intra-Africa Trade (KBC)
B2B E-commerce Platform has officially been launched by Zandaux marking a new era of African Trade . The ground breaking ceremony which took place in Nairobi Kenya, aims at fostering intra-trade in Africa. The launch showcased the platform’s innovative features, industry expertise and its commitment to revolutionizing trade across the continent and unveiled its transformative approach to African business.
Zandaux is set to reshape the landscape of African trade by providing a seamless One Stop trading platform for businesses to connect, collaborate, and thrive across the continent. The Zandaux team believes in using a holistic approach to become the world’s most inclusive B2B sourcing platform that caters to enterprises of all sizes.
Ethiopia becomes BRICS member amid economic crisis (DW)
Last year, the decision of the BRICS group of major emerging economies — Brazil, Russia, India, China and South Africa — to accept Ethiopia, along with Egypt, as a new member came as a surprise. Analysts had expected that Africa’s largest economy, Nigeria, and Algeria, the largest African country by area, would get the nod.
Susanne Stollreiter, head of the Friedrich Ebert Foundation (FES) in Addis Ababa, which has close links to the governing German Social Democrats, said other factors played a more decisive role: “Ethiopia is very important from a geopolitical point of view. Owing to its large population, its economy has the potential to grow strongly in the future.”
For the BRICS group to benefit from such a development, Ethiopia must first solve its economic problems. The country is on the brink of insolvency. “It is being squeezed by heavy foreign debt, but also by the lack of foreign currency and, above all, by rampant inflation. The latter is hurting the population,” Stollreiter explained.
Rather than looking for scapegoats, Morocco is cashing in on South-South migration (The New Humanitarian)
While the rest of the Maghreb is often in the spotlight over its aggressive approach to African migrants and asylum seekers, Morocco has officially chosen a more tolerant path, and is reaping political and economic benefits from that more liberal attitude.
Unlike Maghreb countries that have adopted more hostile policies, like Tunisia, where the government has stoked a climate of xenophobia, Morocco has positioned itself as a pro-migrant destination – a strategic decision motivated by both geo-political and economic interests. Yet tensions remain in a country that is itself a significant generator of migration to Europe.
Unlocking Africa’s Agriculture Potential Through CGIAR TAAT Model (Inter Press Service)
As hunger and food insecurity deepen, Africa is confronting an unprecedented food crisis. Estimates show that nearly 282 million people on the continent, or 20 percent of the population, are undernourished. Numerous challenges across the African continent threaten the race to achieve food security; research and innovative strategies are urgently needed to transform current systems as they are inadequate to address the food crisis.
Transforming food systems is key. A powerful and unified effort is needed to equip food systems to advance human and planetary health to their full potential. This was the message as CGIAR entered a new era under the leadership of Dr Ismahane Elouafi, the Executive Managing Director.
CGIAR continues to create linkages between agricultural and tech stakeholders, emphasizing digital innovation for agricultural development. CGIAR-IITA explores leveraging ICTs to tackle agricultural challenges, boost productivity, ensure sustainability, and enhance food security, featuring
Southern Africa trade dynamics: Insights from industry leaders (Global Trade Review)
In late 2023, GTR brought together trade finance leaders in South Africa to discuss the current landscape and future trends in trade and supply chain finance across the Southern Africa region. Topics ranged from FX challenges to digitisation efforts and the role of ESG in fostering sustainable development.
DDG Hill emphasizes importance of services trade and e-commerce at seminar on the WTO (WTO)
Deputy Director-General Johanna Hill discussed the future of services trade and e-commerce on 16 January at a seminar on “WTO Structure and Governance” organized by the Washington International Trade Association. Former Deputy United States Trade Representative Robert Holleyman and Singapore’s Deputy Permanent Representative to the WTO Darryl Leong also participated in the event.
DDG Hill emphasized the importance of the services sector for the global economy and for international trade. She noted that services accounts for the majority of economic output worldwide, representing on average 67% of global GDP and half of all jobs. This represents a great potential for trade.
Global Investment Trends Monitor, No. 46 (UNCTAD)
Global foreign direct investment (FDI) flows in 2023, at an estimated $1.37 trillion, showed a marginal increase (+3%) over 2022, defying expectations as recession fears early in the year receded and financial markets performed well. However, economic uncertainty and higher interest rates did affect global investment. The headline increase was due largely to higher values in a few European conduit economies; excluding these conduits, global FDI flows were 18% lower.
FDI flows to Africa were almost flat at an estimated $48 billion (-1%). Greenfield project announcements increased, mostly due to strong growth in Morocco, Kenya, and Nigeria. However, project finance deals fell by one third, more than the global average decline, weakening prospects for infrastructure finance flows.
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Critical infrastructure failure the biggest business risk in South Africa this year (Engineering News)
Critical infrastructure blackouts have emerged as the number one risk for businesses in South Africa for the second consecutive year, highlighting the severe impact of power outages and the failure of essential infrastructure such as ports, railways, roads and more on the economy and businesses, insurance and risk multinational Allianz says.
“South Africa’s business community must remain vigilant in the face of critical infrastructure blackouts. The persistent threat of power outages and infrastructure failures poses significant challenges to businesses, disrupting supply chains and impacting the overall economy,” says Allianz Commercial South Africa CEO Thusang Mahlangu.
“The report underscores the urgent need for investment in infrastructure resilience and the development of contingency plans to mitigate the potential consequences of blackouts. By proactively addressing these risks, businesses can enhance their ability to withstand disruptions and ensure continuity of operations,” he emphasises.
Godongwana warns of difficult budget next month (Engineering News)
South Africa’s finance minister warned that next month’s budget will be a “difficult one” as the nation’s ability to service its growing debt remains a challenge. Enoch Godongwana will table the annual budget in late February, when he will announce more details on the National Treasury’s plans to arrest ballooning debt, he told Johannesburg-based broadcaster Newzroom Afrika on Monday.
In his mid-term budget in November, Godongwana stressed the need to stabilize public finances and accelerate growth as the Treasury warned off a higher debt trajectory over the next two years. Ongoing power cuts and a logistics crisis continue to constrain economic growth in Africa’s most-industrialized economy. Next month’s budget will come before South Africa’s general election that’s expected to take place by August.
Port of Maputo reports record volume for 2023 (Engineering News)
The Maputo Port Development Company (MPDC) says the Port of Maputo has achieved a record volume of 31.2-million tons in 2023, up 16% on the previous year. The record volumes at Maputo come as South Africa’s State-owned Transnet group battles inefficiencies at its own ports and on its railway lines.
Of the 31.2-million tons handled at Maputo, about 25-million tons were made up of various ores, including chromium, ferrochrome, magnetite, coal, phosphate, vanadium, titanium, copper, vermiculite, among others. “The handling of these cargoes reflects the diversification strategy on which the Port of Maputo has focused in recent years,” says MPDC CEO Osório Lucas. He also points to the more balanced distribution of the volumes transported.
Kenya, Tanzania to solve aviation dispute in three days (CGTN)
Tanzania and Kenya have agreed to promptly resolve the imposed travel restrictions on each other’s airlines, Tanzania’s Minister for Foreign Affairs and East African Cooperation, January Makamba said on Monday. The decision comes in response to Tanzania’s earlier move to suspend all Kenya Airways passenger flights connecting Nairobi and Dar es Salaam from January 22, 2024.
The dispute stems from Kenya’s denial of Air Tanzania’s request to conduct cargo flights between Nairobi and third countries. In an official statement, the Tanzania Civil Aviation Authority (TCAA) asserted that this denial violated Section 4 of the 2016 Memorandum of Understanding on Air Services between the two nations. TCAA Director General Hamza Johari clarified the decision, citing Kenya’s refusal as the reason for the temporary suspension.
How Dangote Refinery exposed Nigeria’s shipping inadequacies (Tribune Online)
Checks by the Nigerian Tribune has revealed that no single Nigerian shipping company participated in the six crude oil delivery process that took place at the $19.5bn Dangote Petro-chemicals Refinery located in Lagos. This is even as further findings revealed that Nigeria lost out due to the very large sizes of ships used in the delivery of crude oil products to the Dangote Refinery.
Speaking with the Nigerian Tribune in an exclusive interview at the weekend, the President of the Nigerian Chamber of Shipping (NCS), Mallam Aminu Umar explained that six different ships loaded crude products to the Dangote Refinery, with none owned or operating from Nigeria. The NCS President expressed optimism that more local players should get involved when the Diesel and Aviation products being produced needs to be shipped out.
African Export-Import Bank (Afreximbank) has successfully arranged a syndicated US$3.3 billion crude oil prepayment facility sponsored by the Nigerian National Petroleum Company Limited (NNPCL). An initial disbursement of US$2.25 billion has been made. A second tranche of US$1.05 billion is expected to be disbursed subsequently.
This landmark financing is Nigeria’s largest crude oil prepayment facility and one of the largest syndicated loans raised in Africa in 2023. Investors were keen to consider ticket sizes of US$250 million and US$500 million amidst current headwinds and year-end pressures in the loan markets.
Shell to exit Nigeria’s onshore oil after nearly a century (Engineering News)
Museveni to open EAC business forum in Kampala (New Vision)
President Yoweri Museveni is today (Tuesday) expected to officially open the East African Trade and Investment Forum in Kampala which is running concurrently with the 19th summit of the Non-Aligned Movement (NAM).The Ugandan government is banking on this three-day forum, which started on Monday at Kampala Serena Hotel, to attract at least $1b (about sh3.7 trillion) worth of investments in various sectors of the economy.
The sectors include energy, ICT, commercial agriculture, trade, infrastructure, mining, industrialisation, tourism, and oil and gas. The forum brings together big investors from the East African Community (EAC) to showcase and explore the investment opportunities in Uganda and other EAC member states, according to the government.
Africa Finance Corporation (AFC), the continent’s leading provider of infrastructure financing solutions, is to provide a US$250 million Sharia-law compliant trade loan facility to the Government of Egypt in partnership with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group. The proceeds from the loan will contribute to addressing Egypt’s immediate priorities and boost economic resilience by financing the purchase of critical petroleum products and agricultural commodities, essential pillars of Egypt’s economic infrastructure.
The 1-year trade loan facility will be evenly split between two key state-owned entities in Egypt: the Egyptian General Petroleum Corporation (EGPC), in support of the procurement of fuel and petroleum products, and the General Authority for Supply Commodities (GASC), in support of improving food and economic security through essential agro-based commodity imports, such as wheat, corn, vegetable oils and sugar.
Akufo-Addo to host 3-Day Africa Prosperity Dialogues from January 25, 2024 (MyJoyOnline)
The Africa Prosperity Network (APN) in collaboration with the Africa Continental Free Trade Area Secretariat is set to organise the Africa Prosperity Dialogues in Ghana from January 25-27, 2024. The meeting will offer top business leaders, heads of international development institutions, and social change markers a unique platform to deliberate and proffer comprehensive policies aimed at boosting intra-Africa trade.
Addressing journalists ahead of the three-day conference, Founder and Executive Chairman of Africa Prosperity Network, Gabby Asare Otchere-Darko said it’s time to invest in key sectors and prioritise trade to unlock Africa’s global potential.
Africa free trade bloc: 31 countries to take part in 2024, will use new payment system (News24)
More than half of African nations will use the rules of a continental free-trade pact this year as the region moves closer to fully integrating into a single market. Of the 47 countries that have ratified the African Continental Free Trade Area, 31 will join the so-called guided trade initiative, up from eight in 2023, AfCFTA Secretary-General Wamkele Mene said at a World Economic Forum panel in Davos Tuesday.
Last year’s trial included processed agricultural products, manufactured goods and services, he said. Uganda, for example, exported some of its excess 2 billion liters of milk to Algeria, while a ceramic-tile manufacturer in Ghana shipped the product to Cameroon. ”AfCFTA enabled a 20% reduction in duty,” Mene said. “That is 20% competitiveness as of the start of trade.”
The expanded pilot will include a pan-African payments and settlement system using local currencies to overcome the continent’s foreign-exchange shortages and convertibility limitations. “The frictional cost of trade on the continent — because people need to access currencies that they don’t trade in — it’s about $5 billion a year, which actually could go back into the economies,” Mary Vilakazi, the incoming chief executive officer of FirstRand, said at the forum.
The United Nations Economic Commission for Africa, through its African Trade Policy Centre (ATPC), and in partnership with the African Continental Free Trade Area (AfCFTA) Secretariat and the United Nations Development Programme (UNDP), organized the first conference on AfCFTA implementation strategies, titled: AfCFTA Implementation Strategies: Towards an Implementation Peer Learning Community.
A key objective of the three-day conference that started on 15 January in Nairobi, Kenya, is to lay the foundations of a permanent continental peer-learning platform through which AfCFTA State Parties would exchange experiences on their efforts to operationalize the AfCFTA Agreement through national and regional implementation strategies.
The Director of Regional Integration Trade Division at the ECA, Mr. Stephen Karingi, speaking on behalf of ECA Executive Secretariat Claver Gatete, stated “The AfCFTA holds the promise for our Continent to overcome the colonial legacy of small and fragmented markets and replace them with a single market.” Mr Karingi added that, while the AfCFTA promises to transform Africa, the realization of that promise is dependent on the implementation, by AfCFTA State Parties, of the commitments contained in that Agreement that established the AfCFTA.
Also speaking at the opening, H.E. Ambassador Albert Muchanga, African Union Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals (ETTIM), described the AfCFTA as “the launch pad for deeper continental integration.” The Commissioner informed the conference that the AUC, in collaboration with ECA and other pan-African institutions, is undertaking studies to assess the readiness of the continent for the next phase of African integration - the African Customs Union and Common Market.
African businesses are benefiting from key developments in trade finance (African Business)
Upcoming African Heads of State, Gov’t Assembly Expected to Approve Ten-Year Plan for Dev’t Program (ENA)
A 10-year plan that guides Africa’s development program will be approved by the 37th Ordinary Session of the Assembly of the Heads of State and Government of the African Union which take place from 17th – 18th February 2024.
The 47th Ordinary Session of the African Union’s Permanent Representatives Committee (PRC) opened in Addis Ababa yesterday with the objective to discuss various draft reports and prepare the agenda of the 44th Ordinary Session of the Executive Council scheduled to take place 14-15 February 2024 in Addis Ababa. During the occasion, the African Union Development Agency-NEPAD (AUDA-NEPAD) announced that a 10-year plan that targets to guide Africa’s development program will be approved at the 37th Ordinary Session of the Assembly of the Heads of State and Government of the African Union.
AUDA-NEPAD CEO Nardos Bekele told ENA that one of the priorities of the agency in 2023 had been preparing a 10-year plan for African development program. Highlighting that the plan comprises the Africa’s development stakeholders and partners, Nardos stated that the amount of finance required for the continent’s development and finance it need to get from other sources are included in the plan.
In his letter motivating the most recent removals, President Biden called out the Central African Republic’s government for “gross violations of internationally recognised human rights”, and stated that Niger and Gabon “have not established, or are not making continual progress toward establishing, the protection of political pluralism and the rule of law”. It provides duty-free access to the US market for products from eligible sub-Saharan African countries, impacting approximately 6,800 tariff lines in the US tariff schedule.
The societal, political, commercial and environmental requirements of future trade demand transformative technology solutions. Novel technologies are being deployed for supply chain management, logistics infrastructure integration and information financial flows to cope with the scale, complexity and diversity of emerging trade relationships. Active partnership between exporters and importers, logistics operators, technology innovators and policy-makers is accelerating a global shift to new models.
The TradeTech Global initiative, a joint venture between the World Economic Forum and the Government of the United Arab Emirates, has issued a report, TradeTech: Catalysing Innovation, outlining steps to seed, cultivate and harvest technology-enabled upgrades to global trade. It notes the rapid growth of artificial intelligence, ubiquitous sensing and distributed ledgers for managing complex physical, digital and financial flows.
“Leveraging technology for trade has the potential to unlock trillions of dollars in growth,” said Børge Brende, President, World Economic Forum. “Fostering trust among stakeholders will drastically speed-up how quickly we can benefit.”
2024 business forecast tech driven optimism meets rising geopolitical challenges (DP World)
Despite the challenges of 2023 and escalating geopolitical tensions, business leaders remain surprisingly optimistic for 2024, according new research from Economist Impact and DP World, Trade in Transition 2024, unveiled today at the World Economic Forum.
The primary driver is a growing belief that technology will transform the efficiency and resilience of supply chains. Amid escalating concerns about protectionism, global fragmentation and political instability, businesses are reassessing risks within their supply chains and pivoting towards friendshoring and dual supply chain strategies.
Economic uncertainty to persist, report shows (Engineering News)
Global economic prospects are expected to remain subdued and uncertain, according to the latest ‘Chief Economists Outlook’ report released on January 15, as the global economy continues to grapple with headwinds from tight financial conditions, geopolitical rifts and rapid advances in generative artificial intelligence (AI).
“Though global inflation is easing, growth is stalling, financial conditions remain tight, global tensions are deepening and inequalities are rising – highlighting the urgent need for global cooperation to build momentum for sustainable, inclusive economic growth,” says WEF MD Saadia Zahidi.
“The latest Chief Economists Outlook highlights the precarious nature of the current economic environment. Amid accelerating divergence, the resilience of the global economy will continue to be tested in the year ahead... There is a notable uptick in growth expectations for Latin America and the Caribbean, sub-Saharan Africa and Central Asia, although the views remain for broadly moderate growth.
At start of “Fish Month”, WTO members endorse draft text as basis for work towards MC13 (WTO)
At the 15 January opening of “Fish Month”, WTO members agreed to use the latest draft text on curbing subsidies contributing to overcapacity and overfishing as the basis for negotiations ahead of the 13th Ministerial Conference (MC13) in Abu Dhabi on 26-29 February. The chair of the fisheries subsidies negotiations, Ambassador Einar Gunnarsson (Iceland), said the draft is intended to help members to reach agreement over the next four weeks on a “clean” text for submission to ministers.
Comment: Poor countries need more than aid – they need a fair share of the new green economy (Reuters)
Despite billions in development aid being spent in the last 50 years, only seven countries have emerged from least developed country (LDC) status. We can do better. But that will require leaders in Davos this week to focus on how their global job creation plans, opens new tab and energy and climate strategies will benefit the one billion people who live in the world’s 45 LDCs.
G20 countries must act now to ensure that billions of people will not still be living in poverty for another century. They must mitigate the “green squeeze, opens new tab“ that occurs when their industrial policies hurt LDCs.
To fix the debt crisis in low-income countries, first fix the debt sustainability framework (Brookings)
China fosters new foreign trade drivers, optimal investment environment (Macau Business)
As China’s economy slows, Africa stands at a critical juncture (South China Morning Post)
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Cape Town calls for deadline on private sector port involvement (Engineering News)
The City of Cape Town says it wants a “clear deadline” from Transnet and national government on private sector involvement in the Port of Cape Town. With a private sector partner set to start operations at the Port of Durban in April, Cape Town Economic Growth MMC James Vos notes that “there is continued silence from national government on a timeline for a sorely-needed private sector partner boost for Cape Town”.
“Amid ongoing reports of extreme inefficiencies at the Port of Cape Town, the city calls for a clear deadline on introducing a private sector partner here, as will be the case at the Durban port. “The urgency of reform is underscored by a major shipping company recently announcing plans to bypass Cape Town’s port in certain respects.
“We are still awaiting the publication of the Freight Logistics Roadmap, which is being kept under wraps by national government, despite our repeated requests for transparency from Public Enterprises Minister Pravin Gordhan,” adds Vos. “The city will continue to actively mobilise stakeholders, including the private sector, to pressure government into clear timeframes and deadlines for a private partner for the Port of Cape Town.”
According to the World Bank’s container port performance index 2022, Cape Town ranked 344 out of the 348 ports surveyed. Research presented by the Western Cape’s Department of Economic Development and Tourism shows that private sector participation at the Cape Town harbour has the potential to contribute an additional R6-billion in exports, roughly 20 000 direct and indirect jobs, as well as more than R1.6-billion in additional taxes over a five-year period.
The South African Government welcomed the decision by the People’s Republic of China to substantially reduce tariff rates on imports of South African Rooibos tea. Rooibos tea is a unique South African tea that has gained a strong foothold in global markets with hundreds of millions of rands of annual exports in 2022. South Africa led efforts at the World Customs Organization (WCO) for a specific tariff code applicable only for rooibos tea. China, the world’s largest tea market, previously had tariffs ranging from 15% to 30% on rooibos tea. This has now been reduced to 6%.
In August last year, South Africa’s Minister of Trade, Industry and Competition, Ebrahim Patel raised the tariff duties on rooibos tea with his counterpart, the Chinese Minister of Commerce, Wang Wentao, during the 8th meeting of the China-South Africa Joint Economic and Trade Commission. He requested that China considers a request to reclassify rooibos tea and to reduce the duties. Following further consideration from the Chinese side, the Customs Tariff Commission of the State Council of China advised it will be adopting the new tariff code of the WCO to categorise Rooibos tea under tariff code HS 1211.90.39 with an import tariff rate of 6%.
Improved data holds the key for Nigeria’s trade hub ambitions (Freight News)
Nigeria’s President Bola Tinubu has reiterated his country’s plans to turn itself into a hub of export and import activities in West Africa. He made the announcement during the 2023 Comptroller-General of Customs Annual Conference recently. He lamented the lack of comprehensive data, saying it had been “a technological affliction” that has hindered the growth trajectory of Nigeria and the continent, impeding the ability to make informed governance decisions.
The President, who was represented at the conference by his deputy, Vice President Kashim Shettima, noted that the grand vision of his administration is to deploy data to make sound government decisions. “Our current governance landscape demands a transformative intervention… “We aspire to position Nigeria as the preferred destination for all stakeholders involved in export and import activities overseen by the Customs.”
Information Centre of Cabinet proposes strategic directions for Egyptian economy for 2024-2030 (Dailynewsegypt)
The Information and Decision Support Centre at the Cabinet has prepared a comprehensive research project titled “Document Highlighting the Strategic Directions for the Egyptian Economy for the New Presidential Term (2024-2030).” Osama El-Gohary, Assistant to the Prime Minister and Head of IDSC, said: “The document includes policies that aim to establish the foundations of an economic renaissance based on enhancing local production capacities and increasing the resilience of the Egyptian economy in facing crises. It also includes policies that prioritize the continuation of efforts to improve the lives of millions of Egyptians, with key objectives such as achieving strong, inclusive, sustainable, and balanced economic growth of 6% to 8%, focusing on the quality of economic growth by enhancing the contribution of exports and investments in generating output and targeting a supportive economic growth rate to provide 7 to 8 million job opportunities during that period.”
The Executive Board of the International Monetary Fund (IMF) today approved a 36-month arrangement under the Extended Credit Facility (ECF), in the amount of SDR 74.64 million (about US$100 million), and concluded the 2023 Article IV consultation with The Gambia. The policy consultation focused on drivers of inflation, macroeconomic implications of the gender gap, climate-related risks and policies, debt sustainability, and external stability.
The Gambia has weathered more resiliently successive exogenous shocks, namely the COVID-19 pandemic and Russia’s war in Ukraine, relative to peer countries. Economic growth, supported by tourism and public and private construction, is expected at 5.6 percent this year, up from 4.9 percent in 2022. In the medium term, growth is expected at around 5 percent, supported by strong remittance inflows, sustained recovery in the tourism sector, and new infrastructure projects.
IMF Managing Director Kristalina Georgieva Welcomes Debt Treatment Agreement Reached by Ghana and Its Official Creditors under the G20 Common Framework. “I welcome Minister of Finance Ofori-Atta’s announcement that the Ghanaian authorities have reached an agreement in principle with their official creditors on a debt treatment, consistent with the objectives of the IMF-supported program, which aims to restore macroeconomic stability and debt sustainability, build resilience, and lay the foundations for stronger and more inclusive growth.
Ugandan old railway line rehabilitation on track (The East African)
Spanish firm Imathia Construction has completed replacing steel sleepers with concrete beams on the Namanve-Kampala section of the line, which is expected to be handed over this month, Uganda Railways Corporation (URC) publicist John Lenon Sengendo said, adding that the contractor will then embark on the final section, Namanve-Mukono. This will be the second section of the track to be completed.
While the Malaba-Namanve metre gauge track is now in fair condition, importers, exporters, and shippers remain sceptical about switching to rail, citing a shortage of rolling stock and inefficiency, which has resulted in 90 percent of traffic on the Northern Corridor being carried by road and only about seven percent is carried by rail because of the poor state of rail infrastructure.
As a result, transport costs are comparatively high on the Northern Corridor, ranging from 20 cents to 25 cents per tonne per kilometre for road transport, while the cost for rail transport ranges from US cents 6 to US cent 12 per tonne per kilometre, depending on the type of cargo.
Return of piracy on Somalia waters to push up costs (The East African)
The return of piracy cases off the coast of Somalia and the Gulf of Guinea in the past few weeks continue to be a serious threat to international maritime safety, in particular to seafarers and international trade as well as to the security and prosperity of the regional countries. Shippers Council of Eastern Africa (SCEA) head of policy and advocacy Agayo Ogambi said the attacks would disrupt supply chain as it will take longer to deliver the cargo.
“Kenyan exports such as tea will take longer to deliver, considering the routes are no longer safe. The vessels have to take longer routes or hire security for safe passage, which will delay supplies at an extra cost,” Mr Ogambi said. “We are in a difficult situation and this will need both political and military interventions to resolve the crisis but, at the moment, clients should plan accordingly to ensure they do not run out of stock.”
Disputes among EAC nations cast shadow over the bloc’s future (The Citizen)
The East African Community (EAC), boasting a combined population of 301.8 million across eight member states, faces a critical juncture. Its ambitious development plans, including infrastructure investments and regional integration, stand threatened by a wave of escalating disputes between key members. The eight-member states include Burundi, the DRC, Kenya, Rwanda, South Sudan, Uganda, Somalia and Tanzania.
However, recent tensions between Uganda and Kenya over trade barriers, Burundi and Rwanda over alleged rebel support, and the ongoing DRC-Rwanda tensions cast a dark shadow over the bloc’s future. In the $103.8 million budget for 2024/25, the EAC has prioritised promoting the execution of multi-sectoral infrastructure development, including roads, railways and airports, to enhance regional connectivity and facilitate the smooth movement of people and goods in the region.
Burundi shuts border with Rwanda amidst strained relations (Business Insider Africa)
Burundi has declared an indefinite closure of its border with Rwanda. This decision came weeks after Burundian President Evariste Ndayishimiye accused Rwanda of harboring and training the Red Tabara rebel group. Rwanda learned about Burundi’s decision through media reports, a government spokesperson told Reuters, adding it violated the principles of a regional bloc both are part of. “This unfortunate decision will restrict the free movement of people and goods between the two countries, and violates the principles of regional cooperation and integration of the East African Community,” said Yolande Makolo, a spokesperson for the Rwandan government.
Tanzania and Malawi reach accord on transparency for trade (Business Insider Africa)
As seen in the Tanzanian newspaper, The Citizen, the decision to be more transparent with each other came after a virtual meeting between the plant health and pesticide control officials from both nations. This is according to the interview granted to the publication by prof Joseph Ndunguru, the Tanzanian Plant Health and Pesticides (TPHPA) director general.
The TPHPA had imposed a ban on Malawian maize due to the risk of introducing genetically modified maize seeds into its food market. The organization opted to do a pest risk assessment before lifting the prohibition. This prohibition came immediately after a devastating cyclone damaged a large quantity of crops, leaving Malawians with a food shortage. On the other hand, Malawi banned unmilled maize from Tanzania and Kenya over a similar concern. Officials from the country seemed concerned about Maize Lethal Necrosis. Fortunately, during the virtual meeting on Thursday, both countries agreed to share information, which would enable them to make the best decisions.
“We have passed through different issues to enable trade to continue. Therefore, we are currently finalizing reports that will be shared amongst institutions on both sides,” prof Joseph Ndunguru stated. “We have agreed on the timeline that these reports should be shared in the next few days because we have taken the issue with a sense of urgency,” he added.
Ruto, Museveni to meet over fuel import dispute (The East African)
President William Ruto plans to meet his Ugandan counterpart Yoweri Museveni to resolve the fuel import dispute that saw Kampala take Nairobi to the East African Court of Justice (EACJ). East African Community and Regional Development Cabinet Secretary (CS) Peninah Malonza confirmed that the two leaders had scheduled a meeting to diplomatically mend fences over Kenya’s decision to block Uganda’s use of its pipeline to transport fuel.
Uganda had applied to use Kenya’s pipeline to transport its fuel from the port of Mombasa directly to the capital, Kampala, but Kenya rejected the request, arguing that such a move would affect its local oil marketing companies. Malonza downplayed the dispute, saying each member state of the East African Community (EAC) was founded on its own democratic principles and is therefore entitled to pursue its best trade interests.
East Africans look to Somalia, DRC for expanded investment market (The East African)
Tourism, investments in renewable energy, oil, transport and logistics are set to drive business opportunities in the East African region this year, according to industry leaders. And these will draw largely from Somalia’s entry into the East African Community and the re-election of President Felix Tshisekedi in the Democratic Republic of Congo - two factors that are expected to fuel trading opportunities especially in the services industry, financial services/banking, and logistics.
The now eight-member EAC, with an estimated population of 301.8 million citizens, of whom 30 percent are urban-based, is already seeing resurgence in tourism. John Kalisa, chief executive of the East African Business Council, says the impact of visa removal by some countries in the bloc is likely to be felt in the tourism sector as well as transport.
East Africa leaders should follow Ruto’s visa fee move (The Star)
Deputy President Rigathi Gachagua has asked other leaders in East Africa region to emulate Kenya’s visa-free move that allows for borderless movement to spur socio-economic transformation. Speaking during the celebrations of the 60th Anniversary of the Zanzibar Revolution, the DP said easing movement will enhance seamless trade under the African Continental Free Trade Area Agreement and other among other collaborations for the benefit of the people of Africa.
“We reject being defined by the boundaries of colonialists. That is why Kenya has removed visa requirements for anyone visiting our nation. We want to grow beyond the borders of our country because there is more to gain in breaking boundary barriers than closed-door policies,” he said.
The East African Community (EAC) Secretary General, Hon (Dr.) Peter Mutuku Mathuki, this morning held a briefing meeting with the Chairperson of the Summit of the EAC Heads of State and President of the Republic of South Sudan, H.E. Salva Kiir Mayardit at State House, Juba, South Sudan.
The Secretary General briefed the Chair on a number of issues critical to the progress of the Community in the calendar year 2024 and interventions on strengthening EAC inter-state relations. The deliberations focused on setting targets on deliverables under the leadership of President Salva Kiir, anchored on the need to foster a predictable and stable security environment that can catalyse the regional integration agenda.
On the ongoing expansion of the bloc, Dr. Mathuki updated President Salva Kiir on the Secretariat’s readiness to fast-track the integration of the Federal Republic of Somalia once the nation deposits the instruments of ratification with the Secretary General.
Economic Report on Africa 2023:Building Africa’s resilience to global economic shocks (UNECA)
The theme of the 2023 Economic Report on Africa is “Building Africa’s Resilience to Global Economic Shocks.” The report focuses on the impact of multiple and recurring global shocks on African economies. It examines how these shocks impede Africa’s prospects of reaching the targets set in the Sustainable Development Goals (SDGs), how to achieve inclusive economic transformation and how to build resilience.
The analytical and conceptual framework used in the report outlines a typology based on the magnitude of the shocks and on the resilience or preparedness of economies to withstand and buffer the shocks and identify pathways for sustainable recovery
Shocks of various magnitude, duration and recurrence have shaped economic performance in the last several decades. They have undermined Africa’s aspirations for sustained growth and rapid economic transformation and benefiting from demographic (youth bulge) and geographic (urbanization) trends. They have also had scarring effects that make it difficult for African economies to recover fully even after a short-lived shock such as the global financial crisis.
More important, their damage could morph into other domains such as political instability and conflict, thus undermining recovery, and the resilience to future shocks. The report also emphasizes the opportunities to implement long overdue structural and public finance reforms and to take full advantage of regional initiatives such as the African Continental Free Trade Area to reduce Africa’s exposure to external shocks.
The only recourse that Africa has in the face of the challenges of our time is its unity and solidarity. A unity that we build with perseverance and tolerance, in a cooperative effort that transcends particularities, neutralises considerations contrary to the general interest and constantly draws inspiration from mutual understanding.
If I mentioned earlier the painful divisions on the international scene, it is to remind us that at the heart of these geopolitical storms, Africa, in addition to strengthening its unity, will have to draw conclusions for itself and chart out a way of managing its problems that integrates the challenges of the future.
This amounts to constantly reflecting on the scope of the decisions we take, by considering their prospective dimension to align them with the long term of Agenda 2063. What impact a decision taken, today, will have on the trajectory of the attainment of the general objective of our Union, namely peace, integration and development of the Continent?
Six African countries are among the world’s highest growth economies in 2024 (Semafor)
Niger, Senegal, and Rwanda will be among the world’s highest growth economies in 2024, the World Bank said in its report on global economic prospects released this week.
Niger is forecast to grow at 12.5% this year driven by its oil sector which has made up for low uranium production.Its growth rate will only be surpassed by Guyana’s 38.2%, the South American country is also benefiting from an expanding oil sector. Three other African countries expected to be in the top 10 of highest growth economies are the Democratic Republic of Congo, Cote d’Ivoire and Ethiopia.
It reflects an expectation that while growth in Africa’s largest economies — Nigeria, South Africa and Angola — will drag on the rest of the region, economies that are not rich in resources will grow above the expected regional average of 3.8%. Indeed, sub Saharan Africa is expected to grow at 5% this year when Nigeria, South Africa and Angola are excluded from the analysis.
US and Africa Reach Preliminary Deal to Extend Duty-Free Trade Access (BNN Breaking)
In a significant move that reinforces the economic bonds between the United States and Africa, a preliminary trade agreement has been reached to extend the African Growth and Opportunity Act (AGOA) for an additional ten years beyond its current expiration date in September 2025. Enacted in 2000, AGOA has been instrumental in allowing over 30 African nations to export goods to the U.S. market duty-free, fostering economic growth and development in these countries.
While the preliminary agreement has been reached, the extension of AGOA is not yet a done deal. The proposal must be ratified by the U.S. Congress before it can take effect. This is a significant hurdle, but given the economic benefits that AGOA has delivered, both to the U.S. and the African nations, there is optimism that the extension will be approved.
Outcomes of the 2024 India-US Trade Policy Forum Meeting (India Briefing News)
The India-US Trade Policy Forum (TPF) recently concluded its 14th Ministerial-level meeting in New Delhi on January 12, 2024. Co-chaired by Piyush Goyal, Minister of Commerce and Industry for India, and Ambassador Katherine Tai, the U.S. Trade Representative, the Forum plays a pivotal role in reinforcing the strength of bilateral trade ties between the two nations and fostering an overarching economic relationship.
At the end of the Forum, Goyal and Tai (their team referred henceforth as the ministers) released a Joint Statement. In it, the ministers highlighted the momentum witnessed in India-US bilateral trade in goods and services, expecting it to have surpassed US$200 billion in the calendar year 2023 despite global trade challenges.
Recognizing the yet untapped potential in their trade engagement, given the size of their economies, both parties expressed a shared desire to further intensify initiatives aiming to enhance and diversify bilateral trade.
Joint Statement on the United States-India Trade Policy Forum (USTR)
Trade in processed food (UNCTAD)
Access to safe and nutritious food is essential for good health and is linked to Universal Health Coverage (UHC) and the United Nations Sustainable Development Goals (SDGs). To understand the complex environment around the question of health, food, and nutrient intake, UNCTAD paired with WHO to undertake the study on trade in healthy food. The food supply chain, from origin to consumer, encompasses a complex journey involving harvest, farming, production, transportation, storage, processing, packaging, wholesaling, retailing, and eventual consumption. It also extends to international trade. This technical paper aims to quantify and elucidate trends in the imports and exports of whole or unprocessed foods and more processed alternatives.
Revisiting development innovations in least developed countries (UNCTAD)
Least developed countries (LDCs) have a variety of needs and equally have a variety of IPRs at their disposal to serve their domestic socio-economic and development needs, as well as their international obligations. This paper looks at how LDCs can innovate using traditional intellectual property rights (IPR) policies and then looks at how innovation is developing in the informal sector. The analysis focuses on six kinds of IPRs and provides case studies based on the experience undertaken in LDCs or in other developing countries.
WEF president: ‘It’s time to revitalize trade-and reverse the trend of Slowbalization’ (Fortune)
Trade powers productivity. It is an engine of innovation that drives knowledge-sharing and technology upgrades, says Børge Brende, president of the World Economic Forum. It can encourage improved governance and institutional reform. “Slowbalization” has held back trade since the mid-2000s. After the slump caused by the COVID-19 pandemic, we must again harness trade’s capacity to support growth, employment, and sustainable development.
The alternative, trade deterioration, put our current prosperity at risk. The World Trade Organization (WTO) and others have calculated that the direct cost to global output from trade fragmentation and technological decoupling could reach 8-12% in most-affected economies. U.S.-China trade skirmishes have already led to significant trade diversion and income losses. A more uncertain environment depresses economic growth by reducing consumer confidence and spending and removing firms’ reasons to invest.
Flagship economic report highlights why global cooperation is key (UN News)
The flagship forecast launched in New York on Thursday indicates that last year’s stronger-than-expected GDP growth coming out of the COVID-19 pandemic masked short-term risks and structural vulnerabilities in the world economy.
The sombre short-term outlook is based on persistently high interest rates, further escalation of conflicts, sluggish international trade, and increasing climate disasters, which all pose significant challenges to global growth. “2024 must be the year when we break out of this quagmire. By unlocking big, bold investments we can drive sustainable development and climate action and put the global economy on a stronger growth path for all,” said UN chief António Guterres.
Global unemployment to increase in 2024, warns ILO report (UN News)
Global unemployment is expected to rise this year, with growing inequality and stagnant productivity also a cause for concern on the economic horizon, the UN labour agency ILO said on Wednesday. Just over five per cent of the world’s workforce is without a job, according to the International Labour Organization’s World Employment and Social Outlook Trends 2024 report.
This is a better situation than before the pandemic, but it isn’t set to last, as an extra two million people are expected to be looking for a job over the next 12 months, the ILO said.
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South Africa’s trade balance is thinning and in need of urgent resolve (The Mail & Guardian)
A review of South Africa’s trade data for the period 2018 to 2022 revealed that South Africa remained a net exporter in value terms, peaking the positive balance during this period to R444.53 billion in 2021 from lows of R15.21 billion in 2018 and R31.80 billion in 2019. In 2022, the positive balance dropped by just over 60% to R192.21 billion.
Although the country remained a net exporter, the rate of import growth in value terms (2022 versus 2021) increased at a rate (32.6%) close to three times the export rate (10.9%). This wouldn’t warrant the raising of alarm bells because the country stayed a net exporter. What does raise alarm bells is that it would have been expected that value exported in rand terms should have increased based on the local currency’s depreciation when compared to the dollar or the euro.
South Africa to present ‘compelling’ investment case at WEF (Engineering News)
South Africa’s delegation to the World Economic Forum (WEF) will present the country’s investment case to international investors, which Finance Minister Enoch Godongwana has described as “compelling”, despite the challenges the country is grappling with. He was speaking to the media at a pre-WEF briefing, in Johannesburg, on January 11, ahead of the forum being held in Davos, Switzerland, next week. He emphasised that South Africa’s key focus at the forum will be investment, as this drives growth.
Godongwana acknowledged that the country has myriad of structural challenges impacting on the economy, and that the delegation is cognisant of these, mainly, electricity, logistics, crime and corruption. However, he averred that there are strategies and roadmaps in place to address these.
Namibian President Accuses South Africa of Industrial Imbalance in SACU (BNN Breaking)
In a break from the usual diplomatic approach, Namibian President Hage Geingob has publicly addressed the issue of industrial imbalance within the Southern African Customs Union (SACU). Geingob pointed fingers at South Africa, accusing the nation of contributing to under-development within the union. These remarks were made during a year-end media briefing in Windhoek, marking a significant shift in the region’s approach towards tackling its industrial challenges.
Geingob’s public accusation signifies a departure from the diplomatic decorum typically embraced by SACU member states. In the past, these states have highlighted the importance of regional unity and cooperation for promoting investment and development across the union. However, the Namibian leader’s candid remarks underscore his growing dissatisfaction with the current state of industrial development in the region.
Raw minerals, tobacco dominate Zim’s export list (New Zimbabwe)
RAW minerals and tobacco continued to dominate Zimbabwe’s export list in the third quarter of the year, the Reserve Bank of Zimbabwe (RBZ) third-quarter report has established. The central bank report shows that during the period, gold injected US$502,5 million being the largest export earner constituting 26% of the total exports. The Platinum Group of Minerals (PGM) raked in US $403.8 million.
Kenya’s exports surge within EAC and Comesa in Quarter 3 (The Exchange Africa)
Kenya’s exports to her East African Community (EAC) neighbours increased in the third quarter of 2023, as the country continued to push volumes amid efforts to cut the high import bill. This comes as Africa increasingly remained Kenya’s biggest export market, even as economies edge closer to operationalizing the African Continental Free Trade Area (AfCFTA).
According to the Kenya National Bureau of Statistics (KNBS), the value of Kenya’s exports to the EAC totaled $496.7 million (Ksh77.9 billion) up from $431 million (Ksh67.7 billion) in the corresponding period in 2022.
Kenya’s Africa trade surplus hits new high of Sh121 billion (Business Daily)
Kenya’s exports to Africa exceeded imports by Sh121 billion in nine months through September, hitting record-high levels that signal increased deals on the continent for traders amid President William Ruto’s aggressive diplomatic offensive.
Official data shows traders sold goods worth Sh324.79 billion to African countries in the review period, a 20.86 percent jump over Sh268.73 billion in a similar period the year before. The jump in earnings from exports on the continent came at a time expenditure on imports fell a modest 2.85 percent year-on-year to Sh203.79 billion, the first drop since the Covid-19 shutdowns three years earlier.
This resulted in surplus for Kenya’s merchandise trade in Africa more than doubling after rocketing 105.21 percent to Sh121.01 billion from Sh58.97 billion in a similar period in the prior year, the highest on record based on publicly-available data published by the Kenya National Bureau of Statistics (KNBS).
US formally removes Uganda from Agoa (The East African)
The United States has officially struck off Uganda and three other African countries as beneficiaries of the African Growth and Opportunity Act (Agoa), effectively ending Kampala’s ability to export certain commodities to the US duty-free.
In a decree dated December 29, President Joe Biden said he had “determined” that the four countries “do not meet the requirements” necessary to allow them to continue benefiting from the trade deal, effecting his earlier stated plans to delist them. “Accordingly, I have decided to terminate the designations of the Central African Republic, Gabon, Niger, and Uganda as beneficiary sub-Saharan African countries for purposes of section 506A of the Trade Act, effective January 1, 2024,” read the statement by the US President.
In an October 2023 letter to the speaker of the US Congress expressing his intention to remove the four countries from the list of Agoa beneficiaries, Mr Biden said Uganda has “engaged in gross violations of internationally recognised human rights.”
How Uganda Agoa ban impacts East Africa investments (The East African)
Goods, Service Imports On Upward Trend (Tanzania Daily News)
The imports of goods and services increased to 16,172.7 million US dollars in the year ending October, higher than 16,060.1 million US dollars in the previous year, with the main drivers being machinery, industrial transport equipment, motorcars for household and fertilisers.
According to the Bank of Tanzania (BoT) monthly economic review for November, the import of refined white petroleum products, which accounted for 19.7 per cent of the total imports bill of goods, fell by 16 per cent resulting from both price and volume.
Tanzania and EAC at the centre of regional transmission expansion (The Citizen)
Ranked by KPMG behind only South Africa and Nigeria, Tanzania has confirmed its status when it comes to trade and investment. This year, the fifth Tanzania Energy Cooperation Summit (TECS 2024) will showcase Tanzania’s renewable energy investment potential. The country is expecting to see a 6% GDP growth by 2025. This will see hundreds of millions, if not billions, of dollars of investment, targeted towards infrastructure, hydropower, LNG and solar projects in recent years.
Over 150,000 Tonnes of Cashews Exported Through Mtwara Port (Tanzania Daily News)
Over 150,000 tonnes of raw cashewnuts have been exported through the Mtwara Port from October last year, it has been learnt. The cashewnuts were collected from the regions of Mtwara, Lindi and Ruvuma during the 2023/24 harvest season, said the Port’s Manager, Mr Fernand Nyathi on behalf of the Tanzania Ports Authority (TPA) Director General, Plasduce Mbossa. Mr Nyathi said that by the end of this January, 2024, the port is expected to handle over 200,000 tonnes of raw cashew nuts.
Tanzania to become India’s second-biggest trading partner in Africa (The Citizen)
Outgoing Indian High Commissioner, Binaya Pradhan, sat down for a final interview where he detailed key ties between Tanzania and India, specifically highlighting trading milestones that will see Tanzania become India’s second-biggest trading partner on the continent. The interview was hosted by The Citizen’s Managing Editor, Mpoki Thomson.
Port of Lobito Records Increase in Ship Movement (Angola Press Agency)
Three hundred and fifty-one ships docked at the Port of Lobito, handling one million 332 thousand and 451 tons of miscellaneous cargo in 2023. Data were revealed on Monday by the Chairman of the Board of Directors of this company, Celso Rosas, during the New Year’s greetings ceremony, showing an increase of 7.57 percent, compared to 2022. However, he said that there was a reduction of 14.90 percent in terms of tons of cargo.
In terms of revenues, he said that the port collected, in 2023, more than 13 billion and 800 million kwanzas. According to the official, compared to the same period of the previous year, there was a decrease of around 5.72 percent in revenues, as the company had collected more than 14 billion and 700 million Kz. “This reduction was mainly based on the impact of port tariffs, the fluctuation of the currency, as well as the international situation that, in a way, has affected world maritime trade”, explained Celso Rosas.
Maize price drop excites poultry farmers (The Business & Financial Times)
The Ghana National Association of Poultry Farmers (GNAPF) has said the current drop in the price of maize – the main commodity for poultry feed – is a sign that the sector will recover in 2024. The relief comes after several years of concerns over the high cost of production, which includes the price of raw materials for animal feed production – particularly from 2022 and throughout the whole of last year.
GNAPF’s President, Victor Oppong Adjei, told B&FT that the price for a 50kg bag of maize, which sold at GH¢280 throughout last year, is now sold at GH¢200. The drop in price of maize, he said, positively impacted the farmgate price of chicken during the festive season.
Nigeria’s Terms of Trade Records 4th Consecutive Quarterly Decline (Vanguard)
The Nigeria’s Terms of Trade (ToT), for all commodities, recorded a light decline of 0.03 percentage points in the third quarter of 2023, Q3’23. TOT measures a the value of the country’s trade with other countries where a decline indicates higher value of imports against exports. The Q3’23 performance indicates a lower rate of decline with the implication that the fourth quarter, Q4’23, may likely show the indices in positive territory.
Findings from the National Bureau of Statistics, NBS, data on Commodity Prices Indices and Terms of Trade showed that the ToT has been on a negative trend since Q3’22 of last year when it recorded a fall of 0.50 percentage points from an increase of 0.11 percentage points in Q2’22.
Ethiopia to Lift Tariffs for 5,700 Goods (Ethiopian Business Portal)
The Ministry of Trade and Regional Integration revealed that the African Trade Ministerial Council has accepted Ethiopia’s proposal to trade 5,700 goods, constituting 90% of products, within the African Continental Free Trade Area (AfCFTA). According to the AfCFTA plan, Ethiopia will include these items in the non-tariff scheme after seven years, with negotiations planned for the remaining 10% of goods. The goal is to initiate a bilaterally guided trade initiative with AfCFTA member countries to enhance the competitiveness of Ethiopian products in the African market.
China Becomes One of Largest Importers of Ethiopian Coffee (ENA)
China became one of the largest importers of Ethiopian coffee, Ethiopian Ambassador to China Tefera Derbew said. The ambassador delivered a keynotes speech at “The China (Pu’er) International Coffee Expo” held in Yunnan province, Pu’er city with the theme of “Pu’er Coffee, Shared Worldwide.”
Coffee is part and parcel of Ethiopia’s social fabric, and any guest visiting Ethiopia will certainly feel the profound coffee culture deeply embedded in the identity of the Ethiopian people, ambassador Tefera added.
He also stated that, “being one of the world’s three main beverages, coffee is like a bridge, connecting all countries in the world, crossing borders and races, narrowing the distance between people in the global village, and letting culture plug in wings through coffee cultural exchanges, promoting the great integration and development of excellent cultures among all human beings in the world.”
Ethiopia ‘Secures’ Access to Sea After Deal With Somaliland (VOA)
Ethiopia and the self-declared republic of Somaliland have signed a “historic” initial agreement that will allow landlocked Ethiopia to have access to the Red Sea, Prime Minister Abiy Ahmed’s office announced Monday, 1 January 2024.
The announcement was made in Addis Ababa where Somaliland President Muse Bihi Abdi is visiting. According to Ethiopia, Ahmed and Abdi signed the “Memorandum of Understanding,” or MoU, for the partnership in the Ethiopian capital. It said the MoU is “intended to serve as a framework for the multisectoral partnership between the two sides.”
“The Memorandum of Understanding shall pave the way to realize the aspiration of Ethiopia to secure access to the sea and diversify its access to seaports,” said a statement issued by Ahmed’s office.
Somalia Law ‘Nullifies’ Port Deal Between Ethiopia and Somaliland (VOA)
Somalia’s president has signed a law “nullifying” a contentious agreement between Ethiopia and Somaliland in a largely symbolic gesture of his government’s displeasure over the deal to grant port access.
President Hassan Sheikh Mohamud said the law voided the “illegal” pact giving landlocked Ethiopia long-sought access to the Red Sea through Somaliland, a separatist northwestern region over which Somalia exercises little real authority. The passage of the bill on Saturday evening “is an illustration of our commitment to safeguard our unity, sovereignty & territorial integrity as per international law,” the president wrote on X, formerly Twitter.
Benin lifts suspension of imported goods transiting to Niger (RFI)
Benin has lifted its suspension of imported goods transiting to Niger through the port of Cotonou in a move that follows five months of sanctions on the coup-hit country. The measure was taken “in view of the substantial improvement in the operational conditions for handling goods at the port of Cotonou” the port’s director general Bart Van Eenoo said on Wednesday.It comes almost a week after Benin President Patrice Talon called for relations to be swiftly re-established between his country and neighbouring Niger.
Comoros WTO accession package ready for formal adoption at MC13 (WTO)
WTO members negotiating the accession of Comoros on 9 January 2024 agreed by consensus, ad referendum, on the terms of the country’s WTO membership, paving the way for the least-developed country (LDC) to join the organization. With the conclusion of the Working Party’s mandate, the accession package for Comoros will be submitted to ministers for a formal decision at the WTO’s 13th Ministerial Conference (MC13) in Abu Dhabi on 26-29 February.
Union of the Comoros: 2023 Article IV Consultation (IMF)
Economic recovery is underway, supported by the resumption of social activities, tourism, and ongoing public investment projects. Inflation has decelerated, in line with normalizations in international oil and food prices thus far in 2023. However, risks to the outlook are elevated due to the fragile context and global uncertainty; dependence on imports, remittances, and foreign aid means the economy remains highly vulnerable to external shocks. In this context, the economic reform program supported by the Extended Credit Facility (ECF) seeks to reduce fragility and increase economic resilience by building fiscal buffers, reducing debt vulnerabilities, strengthening the financial sector, and mitigating corruption risks.
SADC stepping up efforts to address Anti-Money Laundering and Financing of Terrorism (SADC)
The Southern African Development Community (SADC) has commenced the process to operationalise the Committee on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) as per the provision of Annex 12 of the SADC Protocol on Finance and Investment. The inaugural meeting of the Committee is planned to take place in February 2024.
The operationalisation of the SADC AML/CFT committee follows the decision made by the Ministers of Finance and Investment at their meeting held in the Democratic Republic of Congo in July 2023. This decision was informed by the recommendations from the two studies commissioned under the Support to Improving Investment and Business Environment (SIBE) Programme, namely the (i) Assessment of the level of risk for the implementation of the FATF Recommendations and (ii) Assessment of the national authorities’ capacities to combat money laundering and terrorist financing structures and proliferation financing and the national authorities’ capacity building programme.
The East African Community (EAC) is gearing up for the New Year with a stronger focus on fostering intra-regional trade, resource mobilisation and integrating the newest Partner States. EAC Secretary General, Hon. (Dr.) Peter Mathuki, highlighted the need to enhance intra-regional trade by optimising the implementation of the EAC Customs Union and Common Market protocols. Dr. Mathuki further emphasised the need to work together to eliminate Non-Tariff Barriers (NTBs) hindering intra-regional trade and expressed optimism about increasing intra-regional trade in East Africa to at least 40% over the next five years.
New court case exposes EAC’s weak conflict resolution measures (The East African)
Uganda has sensationally sued Kenya at the East African Court of Justice for denying government-owned oil marketer Uganda National Oil Company (Unoc) a licence to operate and handle fuel imports at the Mombasa Port headed for Kampala.
Uganda says in the suit that Kenya’s Energy and Petroleum Regulatory Authority (Epra) has denied it a licence to import fuel through the Kenyan port and also use the pipeline infrastructure to transport it.Now all eyes are on the regional court, one that is bogged down by operational and financial problems, and which does not sit regularly to dispense with cases.
EAC’s External Trade Grows As Member States Imposes More Barriers (Modern Diplomacy)
East African Community (EAC) member states are trading more with countries outside the bloc owing to persistent trade disputes and non-tariff barriers (NTBs), which are choking intra-regional trade as well as undermining the regional integration agenda, reports James Anyanzwa for The East African.
Disclosures by the EAC Secretariat through its final draft Trade and Investment Report (2022) shows a new trend where member countries are doing increased business with the West African countries, Japan, USA, India, China and the United Arab Emirates (UAE).
So far, the EAC has resolved 23 out of 33 NTBs. Provisional data shows that EAC imports from the UAE surged by 81.9 percent to $8.01 billion in 2022 from $4.4 billion in 2021 and imports from India increased by 20.9 percent to $5.85 billion from $4.84 billion in the same period.
2024 comes with dangers, opportunities in Greater East Africa (The East African)
This new year is fraught with dangers but also opportunities in the Greater East African region. The region has been dealing with protracted crises, terrorism, difficult transitions and elections, but also a cocktail of interconnected hot button issues: High cost of living, a financing crisis, a growth crisis and a climate crisis.
The Gulf States will continue to play a major role not only in the Horn of Africa, as they compete for influence through proxies to secure the Red Sea. The competition between Saudi Arabia and the UAE over the Red Sea will see alliances shift, but most importantly peace processes will have to go through Riyad and Abu Dhabi. All these crises, however, also present an opportunity to find pragmatic ways forward and to continue to push for the African agenda of peace and security, governance, regional integration, voice and effective representation.
In 2023, the African Development Bank Group provided more than $2 billion to North Africa to finance a series of key operations in a range of strategic sectors. The Bank’s Director General for North Africa Mohamed El Azizi, said, 2023 has been an exceptional year: “We have been able to launch flagship operations that build crisis resilience and foster shared growth. We are proud to contribute to improving the daily lives of millions of North Africans”.
Almost $800 million has been approved by the Bank for projects in Morocco in 2023. These include a project to finance and develop health infrastructure in rural areas, and another to support local enterprises. Egypt, meanwhile, received just over $677 million in 2023, including nearly $134 million to finance a series of public reforms aimed at unlocking the potential of the private sector and accelerating economic diversification.
Customs Service partners with AfCFTA Secretariat for better trade initiative (OnePage Africa)
The Comptroller-General of the Nigeria Customs Service, Bashir Adewale Adeniyi MFR, has expressed readiness to partner with the African Continental Free Trade Area (AfCFTA) Secretariate for enhanced trade facilitation in the African Continent. The CGC made this known on Monday, when he received members of AfCFTA at the Customs Corporate Headquarters in Abuja. Lamenting the low trade volume in Africa, CGC Adeniyi said the NCS fully understands the importance of balancing trade facilitation and revenue while pointing out that Africa’s share in global trade is around 3–4 percent.
Africa Collective to kick off week-long agenda in partnership with the African Continental Free Trade Area (AfCFTA) Secretariat (Business Insider Africa)
The series of activities will include thematic engagement sessions - on commodities, health and capital investments: Beginning on Monday, 15 January, with a welcome luncheon & roundtable dedicated to the topic ‘Paving the Way: Commodity-led Industrialization on the African Continent; followed by a breakfast roundtable in partnership with Novartis entitled ‘Moving the needle: From health ‘spend’ to healthcare as an investment’ on Tuesday, 16 January; and finally, a breakfast roundtable themed ‘Unleashing potential: Africa’s place in attracting future allocation of capital pools’ in partnership with Standard Bank Group on Wednesday, 17 January.
Intra-African trade provides an opportunity for inclusive economic growth (Africa Renewal)
Africa’s growing role in global trade dynamics (ZAWYA)
US-Africa trade relations 2024 (The Exchange Africa)
5 Major Ports in Africa That Are Strengthening African Trade (Global Trade Magazine)
Evaluating China’s new tariff-free policy for 6 Africa countries (Daily Trust)
Experts have said China’s latest tariff-free policy for additional African countries may be a catalyst for new opportunities amid criticisms about the trade imbalance and concerns over Nigeria’s position on such economic programmes.
The Chinese government had on December 25, 2023, announced tariff-free access for goods to Angola, Gambia, Congo, Madagascar, Mali and Mauritania on 98 per cent of taxable products. This brought the number of African countries on the zero-tariff policy to 27, as Beijing had earlier announced similar cuts for 21 other African countries including Ethiopia, Niger, Benin, Mozambique, Sudan, Burkina Faso, Guinea Bissau, Sao Tome and Principe, Tanzania, Uganda, Zambia, Rwanda, Togo, and Djibouti.
World Economic Situation and Prospects 2024 (United Nations)
The world economy continues to face multiple crises, jeopardizing progress towards the Sustainable Development Goals (SDGs). Although global economic growth outperformed expectations in 2023 with several large economies showing remarkable resilience, simmering geo-political tensions and the growing intensity and frequency of extreme weather events have increased underlying risks and vulnerabilities. Furthermore, tight financial conditions also pose increasing risks to global trade and industrial production.
Global Economy Set for Weakest Half-Decade Performance in 30 Years (World Bank)
Reforms to boost investment and strengthen fiscal policy could help turn the tide —the slowest half-decade of GDP growth in 30 years, according to the World Bank’s latest Global Economic Prospects report.
By one measure, the global economy is in a better place than it was a year ago: the risk of a global recession has receded, largely because of the strength of the U.S. economy. But mounting geopolitical tensions could create fresh near-term hazards for the world economy. Meanwhile, the medium-term outlook has darkened for many developing economies amid slowing growth in most major economies, sluggish global trade, and the tightest financial conditions in decades. Meanwhile, borrowing costs for developing economies—especially those with poor credit ratings—are likely to remain steep with global interest rates stuck at four-decade highs in inflation-adjusted terms.
Data Blog - High demand for energy-related critical minerals creates supply chain pressures (WTO Blog)
Critical minerals, such as cobalt, copper, lithium, nickel and rare earths, play a crucial role in the production of clean energy technologies, from wind turbines to electric cars. Over the past 20 years, annual trade in energy-related critical minerals has increased from US$ 53 billion to US$ 378 billion. However, the high demand for clean technology goods is putting pressure on the supply chains for these minerals.
Critical minerals are particularly in demand for the production of batteries for electric cars, with each battery requiring as much as 200kg of critical minerals. The battery sector is responsible for 70 per cent of the global demand for cobalt. It also requires aluminium, copper, lithium, nickel and rare earths. Rare earth elements are needed in particular for magnets, a vital component in many electrical machines, especially the most energy-efficient ones.
While 2024’s risks loom large, their worst outcomes are not inevitable (World Economic Forum)
Climate change, demographic changes, technology and geopolitics. These are the changing ‘structural forces’ that are making the world less stable, according to the World Economic Forum’s Global Risks Report 2024. The fallout is already affecting billions of lives. Extreme weather, AI-generated mis- and disinformation, a cost-of-living crisis, cyberattacks and socio-political polarization are already upon us.
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Kenya’s Economic Performance Strengthened in 2023 Despite Continued Challenges (World Bank)
Kenya’s economic performance strengthened in 2023 despite continued challenges, with real GDP growth accelerating from 4.8% in 2022 to an estimated 5% in 2023. This is according to the 28th edition of Kenya Economic Update (KEU) which adds that the improved growth performance is attributed to a strong rebound in agriculture sector in 2023 which had faced a persistent and severe drought as well as a moderate growth in the services sector.
The recovery of agriculture has led to improvements in food supply and coupled with monetary policy tightening has helped reduce inflationary pressures. In 2023, tourism continued to expand, credit to the private sector improved and manufacturing activity is expected to improve from the anticipated growth in agro-processing sector.
Kenya moves closer to economic partnership deal with EU (The East African)
Kenya on Monday asked for the support of the East African Community (EAC) as it moves closer to sealing an Economic Partnership Agreement (EPA) with the European Union (EU) that will grant its exports duty-free status and unlimited access to the 27-member market bloc.
The deal signed in Nairobi was approved by the European Union Council last week and will now be presented to the parliaments of both sides for ratification before it subsequently enters into force. “This momentous step heralds a new era where Kenyan goods gain immediate and permanent duty and quota-free access to the European market. Simultaneously, European goods will also enjoy preferential access to the Kenyan market,” said Trade Cabinet Secretary Rebecca Miano before signing the deal.
The deal, once signed, will be a major boost to Kenya as it will enable the country’s exports to enter the EU duty-free and without quotas. The EU is Kenya’s second-largest trading partner and its most important export market.
Eacop pipes received at Dar es Salaam port ready for laying (The East African)
The East African Crude Oil Pipeline (Eacop) project coordinator has announced the arrival of the first 100 kilometres of pipes at the Dar es Salaam port, signalling the official start of the large-scale construction phase. Speaking during the inspection of the pipes, the coordinator, Mr Safiel Msovu, from the Tanzania Petroleum Development Corporation (TPDC) confirmed the arrival and stated that construction was ready to begin. He added that the project is on track and that both Tanzania and Uganda are committed to its completion.
Road connecting Kenya-Tanzania to be done by 2024 (The East African)
The road connecting Kenya and Tanzania that was commissioned under the East African Community last year is now over 35 percent done. The Bagamoyo–Tanga-Horohoro/Lunga Lunga-Malindi Road project that is under construction is being financed by the African Development Bank (AfDB), African Development Fund (ADF), European Union (EU) and Government of Kenya.
The project road-approximately 54 kilometres within Kenya is expected to be complete by 2024. Its construction began in 2021. On the Kenyan side, the road project will cost Ksh7.5 billion ($50 million) and it starts at the proposed New Mtwapa Bridge next to Mtwapa town.
Rwanda: 2023 Article IV Consultation (IMF)
Rwanda’s economic growth remained robust, but macroeconomic imbalances have intensified. Policy space to advance developmental objectives has been constrained by diminished policy buffers and repeated droughts and the severe floods in May 2023. Headwinds from the war in Ukraine, tightening of global financial conditions, consecutive weak agricultural seasons, and the structural decline of external concessional financing have put pressure on the level of international reserves. While the recalibrated policy mix is expected to rebuild external buffers, curb inflation, and improve debt sustainability, growth is likely to moderate from 8.2 percent in 2022 to 6.2 percent and 6.6 percent in 2023 and 2024, respectively, partly related to continued fiscal consolidation and tight monetary and exchange rate policies. The balance of risks to the outlook remains tilted to the downside, as further deepening of geopolitical fragmentation, another spike in global energy, food, and fertilizer prices, a steeper decline in trading partners growth, or a funding squeeze would weigh on the outlook.
Rwanda: Selected Issues (IMF)
Egypt, Ethiopia trade blame over failed dam talks (The East African)
Ethiopia and Egypt have traded blame for the failure of a fourth round of negotiations aimed at resolving a long-running dispute over a controversial mega-dam built by Addis Ababa on the Nile. Negotiations between Ethiopia and downstream neighbours Egypt and Sudan have yet to produce an agreement since construction of the $4.2 billion project began in 2011.
Egypt and Sudan fear the massive Grand Ethiopian Renaissance Dam (Gerd) will severely reduce the share of Nile water they receive and have repeatedly asked Addis Ababa to stop filling it until an agreement was reached. A fourth round of talks was held between Sunday and Tuesday in the Ethiopian capital.
$4-billion green hydrogen deal inked for Egypt (Engineering News)
Saudi-listed power generation and investor ACWA Power has signed a framework agreement that outlines the development of the first phase of the green hydrogen project in Egypt with a capacity of 600 000 t/y of green ammonia, with an investment in excess of $4-billion. This follows the sigining of a memorandum of understanding on December 7, 2022 and is intended to scale up to a second phase with a potential capacity of 2-million t/y.
“As a first mover in green hydrogen . . . we commend our partners for their bold step into producing the fuel for the future, for which there will be great demand in Europe and the rest of the world,” says ACWA Power CEO Marco Arcelli. He adds that Egypt is well-positioned to become one of the world’s top producers of green hydrogen.
Media in Africa Called Upon to Own The AfCFTA and its Implementation (allAfrica)
Top media personalities across Africa have called for the formation of a pan-African group of trade journalists who will champion the AfCFTA agenda as well as an African Chamber of Commerce led by individual countries. The group of journalists were of the view that the formation of such a body is the surest way to sensitise the continent on the merits of the AfCFTA. They spoke at a webinar hosted jointly by the African Prosperity Network (APN), organisers of the Africa Prosperity Dialogues (APD), and the Africa Continental Free Trade Area (AfCFTA) secretariat in Ghana on Tuesday (December 19, 2023).
In his opening remarks, the Founder/Executive Chairman of the Africa Prosperity Network (APN), Gabby Otchere-Darko, said that “the AfCFTA is arguably the biggest project for Africa” and every effort must be made to ensure its full implementation as seamlessly as possible. In his opinion, “the small trader in Lagos must understand the significance of being able to sell, especially with the support of technology, what she trades in another country on the African continent without having to pay any duties and other charges”.
For Africans to own the whole concept of free trade and to understand how relevant or impactful it can be to their livelihoods, Mr Otchere Darko underscored the important role of the media, saying, “This is where the media comes in and how we can get the media to unpack this free trade story of the continent is really what this conversation is all about”.
Is the labour force in Africa supply chain ready? (UNCTAD)
Over the last decade and a half, global supply chains have come under pressure due to geopolitical events, economic uncertainties and natural disasters. Disruptions have led to questions on how to strengthen supply chain resilience, with two key concepts advanced, namely, diversification and flexibility.
As global multinationals reconsider resilience, opportunities arise in the following two key areas: countries in Africa can gain entry into supply chains; and multinational firms have an opportunity to diversify into the African continent by strengthening or building new supplier, producer and customer base supply chains. However, as noted in this policy brief, it is imperative for economies in Africa to be adequately prepared and willing to adapt, to ensure participation in global supply chains.
Africa: Health Experts for Local Production of Vaccines (teleSUR)
On Monday, health experts and leaders called for more efforts to boost local production of medical products, especially vaccines, to address public health priorities in Africa.
According to official data, they made the call while speaking at a high-level workshop that gathered African health ministers, and representatives from the World Health Organization (WHO) and Africa Centers for Disease Control and Prevention (Africa CDC) in Kigali, the capital of Rwanda, to discuss strategies to enhance local production of medical products to address public health priorities in Africa.
Speaking at the workshop, Rwandan Minister of Health Sabin Nsanzimana opened the forum with a call to promote vaccine equity in Africa. “Local production and distribution are much more reliable solutions for the African continent, which currently outsources more than 90 percent of its vaccine, medicine, and therapeutic needs,” said Nsanzimana. “We are transitioning from commitment to action, moving into a new era of solutions.”
At the conference convened in Addis Ababa, Ethiopia from 21-24 November 2023 under the theme, “Promoting Sustainable Land Governance in Africa for Accelerating Implementation of the AfCFTA,” Dr. Monique Nsanzabaganwa, Deputy Chairperson of the African Union Commission, said, “the African Union stands ready to support member states in advancing the land-related objectives outlined in the African Union Agenda 2063, the AfCFTA, and the African Union Land Policy Framework and Guidelines to foster an environment where land is a driver of prosperity and unity.”
The continent faces multifaceted land governance challenges, Nsanzabaganwa said. These range from tenure insecurity and land tenure systems to the need for sustainable land management practices as urbanization advances rapidly and climate change continues.
She urged the delegates to translate the outcomes of the conference into concrete national, regional, and continental actions. “We [African nations] must not only commit to the principles and discussions articulated here [at the conference], but also allocate resources, build partnerships, and implement policies that promote sustainable land governance and support the objectives of the [African Continental Free Trade Area] AfCFTA.”
UNCTAD study shows trade’s untapped potential in climate action (UNCTAD)
An UNCTAD study released at COP28 examines how 60 developing countries have integrated trade into their national pledges under the Paris Agreement, known as Nationally Determined Contributions (NDCs). The study, whose launch coincided with the summit’s inaugural “Trade Day” on 4 December, maps out how trade is systematically used in these national climate plans.
“The mapping exercise shows trade policies’ untapped potential in climate action,” said Miho Shirotori, head of UNCTAD’s international trade division. “Trade could play a much bigger role in cutting emissions and preserving resources by facilitating access to low-carbon technologies and environmentally preferable goods and services.”
The study identified 680 trade-related measures within the examined NDCs. In general, the study shows that most of them focus on increasing renewable energy, enhancing energy efficiency and promoting green value chains.
Quick links
Africa’s Trade Landscape: The Need for a Strategic Pivot
Seeing new markets across borders
UNCTAD Transport and Trade Facilitation Series No. 21: Roadmap for Building a Trade Single Window
Items proposed for consideration at the next meeting of Dispute Settlement Body
Shipping insurance for red sea transit soars after mounting attacks
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Crumbling South African rail prompts Botswana to forge new route (Engineering News)
Botswana has received unsolicited bids from investors to build a rail line to a Namibian port that will help avoid South Africa and its disintegrating logistics network. The 1 500 km Trans-Kalahari Railway project is gathering momentum as Transnet, the State rail and ports monopoly in Botswana’s southern neighbour, struggles to ship goods, according to Transport and Public Works Minister Eric Molale.
“We learned in June that the waiting period at all South Africa ports to offload and load can be a minimum of two weeks, floating on the sea for that period,” he said in an interview Monday in Gaborone, the capital.
Transnet has become one of the biggest drags on South Africa’s economy and, along with power outages, resulted in a surprising contraction in growth in the third quarter. Snarled transportation also has the potential to crimp expansion in neighbouring countries, including landlocked Botswana – one of the world’s biggest diamond producers and a major beef exporter that relies on South Africa for most of its trade.
Tanzania: Urgent Reforms Needed to Enable Strong Private Sector-Led Inclusive Growth (World Bank)
Over the past two decades, Tanzania has exhibited robust economic growth, surpassing many developing countries, even weathering the COVID-19 pandemic fallouts remarkably well. However, a new World Bank report shows for this trajectory to remain viable, and for Tanzania to reach its full development potential, in the coming years the country will need to switch gears towards a more private sector-driven growth model.
According to the newly launched Country Economic Memorandum for Tanzania titled ‘Privatizing Growth’ the country’s growth over the past twenty years has been characterized by a noticeable shift towards increased reliance on public infrastructure investments to fuel growth, slowing structural transformation, and a diminishing role of exports.
TPA takes services closer to Malawi customers (Tanzania Daily News)
The Tanzania Ports Authority (TPA) has launched its country office in Lilongwe, bolstering hopes for smooth cargo handling and reduced trade costs between the two countries. The office will play a crucial role in marketing Tanzanian ports by providing reliable information on the facilities and services offered at ports in Dar es Salaam, Kyela and Mbamba Bay.
During the launch event in Lilongwe, Malawi, yesterday, Transport Minister Prof Makame Mbarawa said the launch of the office in Malawi symbolises the strong mutual relationship between the two countries and dual role of facilitating trade flow between the countries. Prof Mbarawa said that one of the most remarkable features of the port industry in Tanzania is that it is the major source of government revenues, whereby taxes on imports and exports handled through the major ports.
Zimbabwe: Spices, herbs add flavour to value and export volumes (The Herald)
Spices and herbs managed to weather the depressed marketing environment punctuating the first 10 months of the year to emerge as the only sub-sector of the horticulture industry to record an increase in the volume and value of exports when the rest faltered. The horticulture industry is composed of vegetables, cuttings, flowers, nuts, deciduous fruits, avocados, citrus, berries, tea and coffee, spices and herbs and other fruits.
Statistics from the Zimbabwe National Statistics Agency (ZimStats) show that spices and herbs export earnings rose from US$ 3 721 319 in the period January to October 2022 against US$ 4 801 356 in the comparable time this year. The mass exported rose a gigantic 43 percent from 1 463 848 to 2 082 517 kilogrammes over the same period. The average price, however, took a 10 percent dip from US$2,54 to US$2, 29 per kilogramme.
The spices and herbs section rose in rankings from position eight in 2021 annual horticulture export earnings of US$2, 3 million to six in 2022 with US$4, 8 million.
Kenya, EAC stare at costly imports as shipping lines shun Red Sea (The Star)
Kenya and other East African countries are now staring at higher freight costs and longer cargo delivery time, as global shipping lines shun the Red Sea route over attacks. Already, two of the world’s largest shipping groups – Mediterranean Shipping Company (MSC) and Maersk have diverted their vessels away from the Red Sea, avoiding the Suez Canal which is a key route for voyages to Mombasa and the East African coastline. The decision comes after attacks by Iran-backed Houthi rebels in Yemen, who are targeting ships travelling to Israel.
The Red Sea is one the world’s most important routes for oil and fuel shipments. Kenya Ports Authority was expecting at least 26 container vessels, 23 conventional ships and six tankers, between yesterday and December 28. Of these, eight container vessels belong to MSC.
Nigeria FG lists importance of data in trade, security, other govt decisions (Vanguard)
The Federal Government, FG, has recognized the importance of data for import and export trade as well as assisting the government to streamline decision making and resolving trade disputes. Speaking at the just ended Comptroller General Conference of the Nigeria Customs Service, NCS, in Lagos, President Bola Ahmed Tinubu said that data is needed not just for international trade but also for economic planning and development.
Tinubu, who was represented by Vice President Kashim Shettima, added that data can also determine security of people and goods around the nation’s borders as these data can be shared as indisputable information with other nations. He explained that the government is committed to positioning Nigeria as the preferred destination for all stakeholders involved in export and import activities.
Uganda Removes Visa Restrictions for DRC Nationals (VisaGuide.News)
Starting from January 1, 2024, Uganda plans to lift visa restrictions for individuals from the Democratic Republic of Congo (DRC) as a benefit of their membership in the East African Community (EAC). By lifting the visa requirement, the DRC can fully embrace the advantages of regional integration, such as unrestricted movement among member states outlined in the EAC Common Market Protocol. Article 7(2)d of the protocol mandates partner states to allow citizens from other member states to enter without a visa, VisaGuide.World reports.
According to local media, the decision to eliminate visa requirements was formalized during the eighth joint permanent commission held from October 11 to October 15, 2023, in Kinshasa, DRC. At the same time, Uganda’s Ministry of Internal Affairs confirmed that both parties had agreed in principle to waive the visa mandate for citizens of both countries reciprocally.
Botswana-Zimbabwe passport debacle: Litmus test for SADC? (APA News)
The Southern African Development Community (SADC) has long harboured the dream of regional integration, a vision of open borders and free movement of people. However, this dream remains largely unfulfilled, confined to policy papers and diplomatic rhetoric.
The stark reality on the ground reveals that economic, political, and security differences among member states are significant barriers to this noble aspiration. A recent incident in Botswana’s parliament perfectly illustrates this dichotomy. A proposal for the removal of passports for citizens of Botswana and Zimbabwe was shot down by Gaborone lawmakers last week, highlighting the stark contrast between policy and practice. The proposal would have seen citizens of both countries use national identity cards instead of passports at entry points.
The CEMAC’s recovery gained strength in 2022, supported by higher hydrocarbon prices, with real GDP growth accelerating to 3.0 percent. The external position strengthened, with rapid accumulation of foreign exchange (FX) reserves, though still below adequate levels. The positive momentum carried into 2023, as oil prices stayed at a relatively high level. The regional policy assurances on the net foreign assets (NFA) set for end-June 2023 (EUR 4.47 billion) were met by a comfortable margin (EUR 880 million), reflecting the continued increase in hydrocarbon exportr eceipts and improved FX repatriations linked to a stepped-up enforcement of the FX regulations. However, the rise in NFA was reversed in 2023 Q3, with NFA falling, driven by a likely deterioration in the current and financial accounts, partly reflecting the combined effects of a steep drop in FX repatriations by the public sector, and dividend payment outflows from the banking sector.
“Achieving sustainable growth and building resilience requires structural transformation. Successful industrial policy requires both sectoral focus as well as getting the basics right. It is essential for countries to identify optimal combinations of policy actions to nurture an industrial program.” This is according to the Economic Report on Africa 2023 (ERA 2023) which was launched on December 18, 2023, in Abuja, Nigeria.
Titled: “Building Africa’s Resilience to Global Economic Shocks”, and presented by the Director, Macroeconomics and Governance Division at the United Nations Economic Commission for Africa (UNECA), Adam Elhiraika, the report shows that the current global economic architecture affords opportunities for African countries to leapfrog and accelerate industrialization through careful experimentation of what has worked elsewhere and adapting it to local conditions.
On Promoting regional value chains, the report states that countries can collaborate in creating, for example, regional agricultural commodity markets that will help to connect surplus economies with net importers for wheat, sugar and rice. This will reduce dependence on Russia and Ukraine.
Algeria Joins Guided Trade Initiative, Boost Pan-Africa Trade (teleSUR)
On Saturday, Algeria’s Minister of Trade and Export Promotion Tayeb Zitouni announced his country’s accession to the Guided Trade Initiative, as part of its effective implementation of the African Continental Free Trade Area (AfCFTA) agreement.
The announcement was made at a forum held in Algiers that gathered influential African economic officials and experts, including AfCFTA Secretary-General Wamkele Mene. “This announcement underscores Algeria’s commitment to advancing pan-African trade,” Zitouni was quoted as saying by the Algeria Press Service.
He further highlighted the new membership’s importance for the region, saying that it will streamline trade exchanges between Algeria’s economic entities and those of other member states, boost Algeria’s non-hydrocarbon exports, and support the expansion of pan-African trade volumes through the AfCFTA.
Makong: Media’s role in success of AfCFTA crucial (Asaase Radio)
The chief technical advisor at the African Continental Free Trade Area (AfCFTA) Tsotetsi Makong has said the contribution of the media to the implementation of AfCFTA is crucial to the success of the initiative. Makong said this will help avoid controversies and ensure the success of the African Continental Free Trade Area (AfCFTA).
Speaking on the Asaase Breakfast Show on Monday (18 December) ahead of a webinar on bridging the gap between media and AfCFTA, Makong advised the media to take a keen interest in AfCFTA. “We need to educate and I think that is why this webinar is important,” he said, adding that “we need to educate to make sure our media houses across Africa understand the AfCFTA agreements so we can avoid controversies.”
Themed ”What Do You Know About the AfCFTA – and Why Should the Media Care?”, the discussion will examine the media’s role in mobilising mass engagement and participation with the AfCFTA and the opportunities opened up by it, especially as it is of immense benefit for the growth of small and medium-sized enterprises in Africa and global Africa (the sixth region of Africa).
APN, AfCFTA to host Africa Heads of States and top business leaders (The Business & Financial Times)
The Africa Prosperity Network (APN) and the African Continental Free Trade Area (AfCFTA) Secretariat are getting ready to host African Heads of State, top business leaders, heads of international development institutions and DFIs, social change-makers and other Pan-African thought leaders at the next Africa Prosperity Dialogues (APD) in Ghana from January 25-27, 2024. The theme for APD 2024 is ‘Delivering Prosperity in Africa – Produce, Add Value, Trade’.
Ahead of this high-profile conference in Ghana, the APN Secretariat, in collaboration with AfCFTA, is organising a media webinar on Tuesday, 19th December, 2024 to help unpack and discuss issues that are pertinent to the realisation of the AfCFTA’s single market focus – collective ownership by the people of Africa.
UNECA boss Gatete talks AfCFTA and how global credit facilities can work for Africa (The New Times)
The past three years, characterized by global shocks, have been eye-opening economically for African governments in terms of building resilient but sustainable mechanisms for development.
In an exclusive interview with The New Times’ Alice Kagina, the Executive Secretary of the UN Economic Commission of Africa, Claver Gatete talks about the need to restructure global credit facilities for Africa’s development, the implementation of AfCFTA and the imperativeness of eco-friendly industrialization on the continent.
Talking about AfCFTA, what will it take for the private sector to start reaping the benefits of this agreement?
First of all, what we need and have been doing is to put the right infrastructure in place, and by that, I mean transport, energy, and other requirements that need to be tackled at a regional level to mobilize resources together.
Secondly, we need to harmonize the common market by removing tariff and non-tariff barriers for the free movement of goods and people to be able to do business from one country to another. These and many more, are what governments are addressing to create an environment for the private sector to invest in.
However, we don’t have to wait until everything is in order, the private sector has been participating in the actualization and taking opportunities in this big market. It is important that as a continent, we increase trade among ourselves more than the outside world.
G20 trade policy direction becoming more restrictive amid continued slow trade growth (WTO)
Trade measures introduced by G20 economies have become more restrictive in recent months, according to the 30th WTO Trade Monitoring Report on G20 trade measures issued on 18 December. The report shows that between mid-May and mid-October 2023, G20 economies introduced more trade-restrictive than trade-facilitating measures on goods, although the value of traded merchandise covered by facilitating measures continued to exceed that covered by restrictions. Director-General Ngozi Okonjo-Iweala called on the G20 to show leadership and contribute to economic stability and growth by unwinding recent and longstanding restrictions on trade.
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Kenya unveils e-commerce strategy to better harness the digital economy (UNCTAD)
Kenya launched a national e-commerce strategy on 13 December to fortify its position as a digital frontrunner in Africa by fostering inclusive and widespread utilization of trusted and secure e-commerce services based in the country. Its Ministry of Information, Communications and The Digital Economy and the Ministry of Trade, Investments and Industry spearheaded the strategy, supported by UNCTAD.
“Kenya’s e-commerce strategy lays the foundation for trust-building among businesses and consumers, making e-commerce more accessible and beneficial for all, including marginalized groups,” said Shamika N. Sirimanne, director of technology and logistics at UNCTAD.
The Nexus of Food, Water & Energy: A Key Element to Egypt’s Climate Efforts (World Bank)
Egyptians are experiencing firsthand the impacts of climate change as temperatures soar, droughts are more frequent and future water supply is less certain. That is why Egypt has put climate change as one of its top development priorities.
A key element of the Egyptian government’s efforts to address climate change is connecting the dots between the food, water and energy sectors. This was particularly evident during Egypt’s presidency of COP27 when — building on its national strategies and updated Nationally Determined Contributions (NDCs), and on the World Bank’s Egypt Country Climate and Development Report (CCDR) — the government launched a flagship program called the Country Platform for the Nexus of Water, Food and Energy (NWFE).
Egypt Proposes Commercial Centers in Africa to Boost Trade Relations (BNN Breaking)
In a bold step towards strengthening its economic ties with Africa, the Egyptian government has proposed a mechanism to establish comprehensive Egyptian commercial centers across the African continent. The initiative, a part of Egypt’s overarching strategy to enhance regional cooperation and expand its economic footprint, is set to revolutionize trade relations and bolster the presence of Egyptian goods in African markets.
The proposed commercial centers are expected to serve as a fulcrum for deepening trade ties between Egypt and the African nations. By proactively supporting Egyptian exports, these centers aim to bridge the gap between the demand and supply of Egyptian products in African markets. The move reflects Egypt’s commitment to nurturing stronger economic relations with its African counterparts and securing a robust market position in the region.
IMF Staff conclude Article IV Consultation for South Sudan
“The authorities have faced multiple economic and humanitarian challenges resulting from the spillovers of the conflict in Sudan, protracted flooding, and declining humanitarian support. In addition, efforts to strengthen administrative procedures for public sector salary payments have contributed to salary arrears while the need to finance elections scheduled for 2024 might put further pressure on expenditures. The conflict in Sudan has created logistical challenges, increased the cost of oil production, and exacerbated an already difficult humanitarian situation in South Sudan, with over 400,000 refugees having arrived in South Sudan as of early December 2023.
“Despite the circumstances, the authorities have supported macroeconomic stability through implementation of prudent fiscal and monetary policies. Progress on domestic revenue reforms continue, with an adjustment to exchange rates used for customs valuation and improved tax collection contributing to a significant increase in non-oil revenues. Efforts to improve governance and transparency have continued, including the publication of the budget execution report for FY2022/23 and preparation for publication of oil revenue and budget execution reports for the first quarter of FY2023/24.
IMF Staff conclude Article IV Consultation for the Union of the Comoros
Signs of economic recovery are visible, supported by a rebound in tourism and ongoing public investment projects. Inflation has declined, in line with normalization in international oil and food prices. The fiscal outturn in the first half of 2023 has been better than expected thanks in part to strong revenue mobilization efforts. The current account deficit is projected to deteriorate over the short term on account of strong import demand and elevated international fuel and food prices, while international reserves remain adequate. However, risks to the outlook remain elevated due to the fragile domestic context and global uncertainty. Dependence on imports, remittances, and foreign aid means the economy remains highly vulnerable to external shocks.
New WTO information note reveals changing pattern in Africa’s trade in intermediate goods (WTO)
The WTO on 15 December released an information note on Africa’s trade in intermediate goods (IGs), providing a snapshot of the region’s growing participation in supply chains. The latest data covering 2010 to 2021 indicates an expansion in Africa’s exports and imports of intermediate goods while also pointing to a high concentration of exports to a few economies and a comparatively narrow range of products. The note also reveals a relatively small share of intra-African transactions.
Africa’s exports of IGs amounted to US$ 265 billion in 2021, growing an average of 15% yearly from 2019 to 2021 according to the information note. IGs refer to inputs (excluding fuels for the purposes of this note) used to produce a final product and are an indicator of the activity in supply chains. Africa’s IG exports represented three-quarters of its total merchandise exports in 2021. The region’s imports of intermediate goods, meanwhile, was worth US$ 284 billion, with annual average growth of 5% for 2019 to 2021. These growth rates are higher than the 5% and 2% average increases for IG exports and imports respectively for 2010-2021.
Exploit Africa Continental Free Trade Area, Sanwo-Olu Urges Business Community (This Day Live)
Lagos State Governor, Mr. Babajide Sanwo-Olu, has urged Micro, Small, and Medium Enterprises, (MSME) to take advantage of the Africa Continental Free Trade Area, (AfCFTA) as government is duty bound to providing the platform and exposing them to skills required to accelerate the effectiveness to stimulate intra-African Trade.
The governor gave the charge during the 8th Lagos State MSMES Exclusive Trade Fair in Ikoyi. The fair is designated as an annual marketing access and intervention platform for Lagos MSME operators to showcase their products and services to the larger population of the state and Nigeria at large.
The theme of this year’s edition of the fair: “Empowering MSMEs for AFCFTA Excellence through Sustainable Economic Growth’ was a means of identifying new opportunities for diversification and value chain development available under the agreement
“In most developed and developing countries, the MSME sector is far bigger than the formal economy and it is a means of livelihood for many people. This sector is a huge economic catalyst, as it constitutes 95 to 98 percent of all businesses, generates 50 percent of the Gross Domestic Products, GDP and creates between 60 to 70 percent of employment.
“In Sub-Saharan Africa and South Asia for example, workers in this sector are estimated to account for about 90 percent of the labour force.
Somalia Joins East Africa Trade Bloc (Voice of America)
Somalia on Friday formally signed on as the newest member of the East African Community trade bloc at the presidential residence in Kampala, Uganda.
Somalia’s formalized membership within the bloc comes two days after the International Monetary Fund and the World Bank approved $4.5 billion in debt forgiveness for Somalia after the Horn of Africa nation completed years of financial reforms under the Heavily Indebted Poor Countries Initiative, or HIPC. The move comes as Mogadishu aims to boost the country’s war-ravaged economy by expanding free trade across the region.
The EAC Partner States and the EAC Secretariat have been commended for the commitment towards supporting the development and growth of the Micro, Small and Medium Enterprises (MSMEs) sector over the past twenty-three years. Burundi’s Minister of Trade, Transport, Industry and Tourism, Hon. Marie-Chantal Nijimbere, further urged the Partner States to devise mechanisms to support inclusive and sustainable growth of MSMEs in the region.
Hon. Nijimbere said that such mechanisms include the establishment of current and transparent regulatory framework; piloting and scaling up of micro-credit and loans guarantee solutions and facilitating universal access to ICTs and other basic infrastructure to enable MSMEs close information and technological gaps.
Hon. Nijimbere was speaking when she officially closed the 23rd EAC MSMEs Trade Fair at the Cercle Hyppique Grounds in Bujumbura, Burundi. The trade fair that opened its doors on 5th December, 2023 attracted exhibitors from Burundi, Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Uganda and Tanzania.
The Minister stated that MSMEs make a significant contribution to economic growth and sustainable development worldwide, nothing that globally MSMEs represent about 90% of businesses, and more than 50% of employment worldwide, contributing up to 40% of national income in emerging economies.
“To facilitate the transformation of MSMEs in the region, we must therefore strive to address the challenges faced by MSMEs such as low productivity, poor competitiveness due to use of inadequate technology and equipment, high cost of utilities, unfavorable regulatory requirements, limited access to finance and markets, and weak managerial and entrepreneurial capacities,” she added.
Why EAC economies are set to rebound in 2024 (The Citizen)
Economic growth in East Africa is expected to rebound next year, increasing by an average of 6.3 percent. This will be supported by full recovery of the services sector, private consumption and improved export performance. The region’s growth will be almost double Africa’s projected GDP growth rate of 3.3 percent.
The promising economic landscape for the region is contained in a report released by the international consultancy Deloitte. The 2023 East Africa Macroeconomic Publication Volume 1V covers Tanzania, Uganda, DR Congo, Kenya and Ethiopia. Themed Cautious Optimism Amid Economic Turbulence, the report gives a current comprehensive overview and the outlook for 2024.
Kenya to enjoy duty-free, quota-free access to the EU market (Capital Business)
Kenya and the European Union have signed the Kenya-European Union Economic Partnership Agreement, strengthening their resolve to enhance economic collaboration. President William Ruto said the agreement will boost trade between Kenya and the 27 countries in the European Union.
The President said Kenya will now enjoy duty and quota-free access to the European market when the agreement is ratified by the European Parliament. He said access to the 16 trillion euro market will stimulate the growth of manufacturing, value addition and entrepreneurship in the country. This, he explained, will fast-track the realisation of the country’s Bottom Up Economic Transformation Agenda by expanding opportunities and increasing earnings.
DP World, UACCIAP partner to reshape intra-Africa trade (Port Technology International)
The Union of African Chambers of Commerce, Industry, Agriculture, and Professions (UACCIAP) and DP World are collaborating to enhance intra-Africa trade by addressing business challenges and fostering collaborative opportunities.
The alliance aims to make intra-African commerce more accessible, efficient, and cost-effective. UACCIAP and DP World will provide African firms with a comprehensive platform for connecting, sharing business information, access to fairs and exhibits, sectorial and general delegations, and logistical support under the terms of the agreement.
African Development Bank to Create African Ports Index (The Maritime Executive)
The Beijing-based infrastructure fund Multilateral Cooperation Center for Development Finance (MCDF) has approved a $2 million grant aimed at sealing data gaps in Africa’s port operations. The initiative will be implemented by the African Development Bank (AfDB), and will produce a port data book that provides performance data and practical information for Africa’s ports.
According to MCDF, addressing Africa’s data gaps in port operations is key in facilitating investment in port expansion, and would also help to boost port performance.
In addition, the project will create a web-based portal for securely collecting, storing and retrieving African port data. This will help the Regional Ports Management Association, AfDB, individual port authorities and development partners assess port service and performance.
Africa gets shot in the arm as African Pharmaceutical Technology Foundation gets underway (AfDB)
Africa’s efforts to build a resilient and self-reliant pharmaceutical industry for the continent advanced significantly today as the African Pharmaceutical Technology Foundation and the Rwandan Government signed the host country agreement paving the way for the Foundation’s operationalisation.
The Foundation also signed a memorandum of understanding with the European Investment Bank to further strengthen cooperation.
The Rwandan government has played a pivotal role in anchoring the Foundation and granting it the status of an international agency. At the host country agreement signing ceremony in Kigali, Rwanda’s Minister for Foreign Affairs and International Cooperation, Dr Vincent Biruta, said it was important to close the vaccine equity gap between African countries and the world’s developed nations.
“To close the gap, we must continue investing in pharmaceutical production in Africa and other developing countries,” Biruta said. He added: “Technology and knowledge transfer are central. The new African Pharmaceutical Technology Foundation will help Africa gain rapid access to the latest pharmaceutical breakthroughs.”
The first global declaration on curbing emissions from food production was signed by 134 countries, including 25 African countries, at the COP28 climate summit in Dubai, putting food systems transformation on the global climate agenda and aligning with the African Development Bank’s ambitious food and climate initiatives.
COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action addresses global emissions while safeguarding the lives and livelihoods of farmers on the frontlines of climate change.
Expected to enhance food systems, build resilience to climate change, reduce global emissions, and contribute to the global fight against hunger, the declaration aligns with the UN Sustainable Development Goals and the Bank’s impactful, climate-sensitive programs and initiatives supporting food and climate action to feed Africa and improve the quality of life for the people of Africa.
Climate change in COMESA: How Ugandan farmers are fighting back (New Vision)
Trade rules and climate change: Africa stands to lose from proposed WTO policy tools (The Conversation)
The World Trade Organisation launched its Trade Policy Tools for Climate Action during the COP28 conference. International economic law expert Olabisi D. Akinkugbe discusses whether the new Trade Policy Tools benefit Africa.
The new tools offer opportunities for countries to mitigate the climate change effect of their trade practices. The tools align with the Paris Agreement, the 2015 legally binding United Nations Treaty on Climate Change.
But the global contribution of African states to climate change remains very low: 4%. African states’ contribution to global trade stands at 3%. There are socio-economic inequalities between African states and their western counterparts. The wider historical context of these inequalities means that the WTO’s Trade Policy Tools for Climate Action will have different impacts on developing and developed countries.
UK to implement carbon levy on imported goods by 2027 (Engineering News)
Britain will implement a new carbon import levy on some products from 2027 to help to protect businesses against cheaper imports from countries with less strict climate policies, the government said on Monday. The planned carbon border adjustment mechanism (CBAM) will apply to carbon-intensive products in the iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass and cement sectors.
The charge applied will depend on the amount of carbon emitted in the production of the imported good and any gap between the carbon price applied in the country of origin and the carbon price faced by UK producers. “This levy will make sure carbon intensive products from overseas – like steel and ceramics – face a comparable carbon price to those produced in the UK, so that our decarbonisation efforts translate into reductions in global emissions,” finance minister Jeremy Hunt said.
SADC PF adopts motion on BRICS cooperation (New Era)
The 54th Plenary Assembly Session of the Southern African Development Community Parliamentary Forum (SADC PF) recently adopted a motion on cooperation between SADC and BRICS, a group of major emerging economies including Brazil, Russia, India, China and South Africa.
The Speaker of the National Assembly of Namibia, Professor Peter Katjavivi, noted: “The commitment of BRICS member states is to promote inclusive multilateralism and upholding international law in a world where sovereign states cooperate to maintain peace and security, advance sustainable development, ensuring the promotion and protection of democracy, human rights and fundamental freedoms for all, and promote cooperation based on the spirit of solidarity, mutual respect, justice and equality”.
The motion acknowledged BRICS member states’ commitment to supporting the African Union’s Agenda 2063, particularly in the effective implementation of AfCFTA. It also recognised the potential of AfCFTA in aligning with the development goals of the SADC region.
Digital trade is key to boosting growth in developing economies (WTO Blog)
Digital trade, encompassing all trade that is digitally ordered and/or delivered, is radically changing the global economy. One of the most striking trends in this digital era is the rapid growth of digitally delivered services, which have experienced a nearly fourfold increase in value since 2005, significantly outpacing the growth of goods and other services exports
While developed economies are the main exporters of digitally delivered services, developing economies, including in Africa, are increasingly exporting such services. That said, least-developed countries (LDCs) continue to experience slower growth in digitally delivered services exports.
MC13 Chair briefs members on ministerial preparations; members approve budget increase (WTO)
At a 13-15 December meeting of the WTO’s General Council, members heard from the Chair of the 13th Ministerial Conference (MC13), H.E. Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates, on preparations for MC13, which will take place in Abu Dhabi in February 2024. Members also approved a budget increase for the WTO Secretariat for the 2024/2025 biennium following 12 years of zero nominal growth.
Remittance Flows Continue to Grow in 2023 Albeit at Slower Pace (World Bank)
Remittances to low- and middle-income countries (LMICs) grew an estimated 3.8% in 2023, a moderation from the high gains of the previous two years. Of concern is the risk of decline in real income for migrants in 2024 in the face of global inflation and low growth prospects, according to the World Bank’s latest Migration and Development Brief released today.
By region, remittance inflows grew for Latin America and the Caribbean (8%), South Asia (7.2%), East Asia and the Pacific (3%), and Sub-Saharan Africa (1.9%). Flows to the Middle East and North Africa fell for the second year, declining by 5.3% mainly due to a sharp drop in flows to Egypt. Remittances to Europe and Central Asia also fell by 1.4% after gaining more than 18% in 2022.
Quick links
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Out of scope: How ESG will shake up global trade (Trade Finance Global)
Why South-South trade is already greater than North-North trade—and what it means for Africa (Brookings)
FDI forecasts and trends to watch in 2024 (Investment Monitor)
Fiscal Impacts of Climate Disasters in Emerging Markets and Developing Economies (IMF)
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South Africa’s FDI inflows slow in third quarter (CGTN Africa)
South Africa recorded reduced foreign direct investment inflows of 26 billion rand ($1.40 billion) in the third quarter of 2023, from 53.8 billion rand in the second quarter, central bank data showed on Thursday. The South African Reserve Bank said in its Quarterly Bulletin that the inflows were due to non-resident parent entities granting loans and increasing their equity stakes in domestic subsidiaries over the period.
Africa’s most industrialised nation has had the worst power outages on record this year, with rolling blackouts leaving households and businesses without power for up to 10 hours a day.
International air cargo group opens pharmaceuticals handling facility at Cape Town (Engineering News)
The International Airlines Group’s (IAG’s) freight business, IAG Cargo, announced on Thursday that Cape Town had become its latest station to receive approval to handle the shipment of temperature- and time-sensitive healthcare products. These included bioscience and healthcare inputs and products, but especially pharmaceuticals (ranging from components to vaccines).
“Adding Cape Town to our Constant Climate [network] is an exciting moment as it strengthens our cold chain offering, and shows our commitment to serving the pharmaceutical, bioscience and healthcare industries,” affirmed IAG Cargo Pharmaceutical head Jordan Kohlbeck. “For many customers this will support the increasing demand for transporting pharmaceuticals globally, specifically to the African market.”
South Africa aims to fire up economic growth with port, rail revival (Engineering News)
South Africa’s government and the business community set a target of boosting the economic growth rate by as much as six percentage points by fixing the country’s collapsing ports and freight-rail network. They predict that cracking down on crime and corruption may save as much as 300 billion rand ($16 billion) a year, according to a slide presentation from a meeting held earlier this month, which were seen by Bloomberg and confirmed by business representatives. South Africa’s National Treasury has forecast gross domestic product will grow 1% next year.
South Africa’s biggest companies and the government have set up joint panels as part of a drive by its biggest companies to work with the state to resolve a host of issues holding back the economy. Those range from power cuts and the poor performance of the rail network, to increasing crime and an inefficient work-visa application process.
The Freight Logistics Roadmap is a government document outlining plans to boost private involvement in the country’s largely state-run ports and rail network.
Kenya Can Build on Past Success to Make Growth More Inclusive and Accelerate Poverty Reduction (World Bank)
Kenya has in the past been successful in translating economic growth into improved living standards of its citizens. Despite progress, the challenge going forward is to ensure the poor and vulnerable benefit equally from progress, addressing the stark and persistent disparities across space and income groups.
According to a new World Bank report titled Kenya Poverty and Equity Assessment (KPEA) 2023 – From Poverty to Prosperity: Making Growth More Inclusive, which covers the period between 2005 and 2021, the progress Kenya has made in reducing poverty and raising living standards of its citizens has not been equally shared. As a result, economic growth has not sufficiently translated to more people escaping poverty and in recent years, poverty has become less responsive to economic growth.
Revamped Kagitumba-Rusumo road credited for easing movement, trade (The New Times)
A 208-kilometer Kagitumba-Kayonza-Rusumo asphalt road project has facilitated movement of people and goods, as well as trade by reducing the time it takes to do business, and transport costs, among other benefits, officials and its users have said
Speaking at the project inauguration on Wednesday, December 13, in Eastern Province, the Minister of Infrastructure, Jimmy Gasore, observed that the road connects Rwanda to Uganda and Tanzania as Partner States of the East African Community, hence being of strategic importance for the landlocked country in terms of connection to the region.
IMF and World Bank Announce US$4.5 billion in Debt Relief for Somalia (IMF)
The Executive Boards of the International Monetary Fund (IMF) and the World Bank’s International Development Association (IDA) have approved the Heavily Indebted Poor Countries (HIPC) Initiative Completion Point for Somalia, which provides total debt service savings for the country of US$4.5 billion. Following HIPC Completion Point, Somalia’s external debt has fallen from 64 percent of GDP in 2018 to less than 6 percent of GDP by end 2023. This debt relief will facilitate access to critical additional financial resources that will help Somalia strengthen its economy, reduce poverty, and promote job creation.
“For Somalia to move forward in the positive economic direction we all needed, we had to reform our laws, systems, policies, and practices. Reaching the HIPC Completion Point is the fruit of these reforms. When my government committed to the reform program nearly a decade ago, this was the result we envisaged,” said Somalia’s President, H.E. Hassan Sheikh Mohamud.
Regional Trade Promotion Framework Validated (COMESA)
Representatives from Trade Promotion Agencies, Chambers of Commerce, the private sector and Ministries of Trade and Industry have validated the COMESA Regional Trade Promotion Strategy. This was during a two-day workshop held in Bujumbura, Burundi, 11-12 December 2023 to review and amend the draft content of the strategy.
This is the first time that COMESA is developing a Regional Trade Promotion Strategy. Speaking at the workshop, the Assistant to the Minister of Trade, Industry, Transport and Tourism Mr Jean Claude Kanene emphasized the importance of the region having a Trade Promotion Strategy as a way of bringing about real integration. “Promoting exports in our region is a giant step towards improving community trade,” said Mr Kanene.
“But it is not enough just to value add and take goods to markets. A Trade Promotion Strategy must be accompanied by a well-designed marketing and communication strategy. At the same time, we should work harder to open services markets. We live in a digital age, and digital trade is global by nature,” Dr Onyango said.
The Southern African Development Community (SADC) will facilitate the first meeting of the Committee of Ministers from the three (3) Lobito Corridor Member States, namely the Republics of Angola and Zambia and the Democratic Republic of Congo (DRC), which is scheduled to take place in Lobito, Angola on 16th December 2023. The purpose of this meeting is to review and assess the progress of activities aimed at accelerating the implementation of the Lobito Corridor Transit Transport Facilitation programme reaffirming the commitment made by three heads of state.
The Lobito Corridor Transit Transport Facilitation (LCTTF) Agreement was signed in Lobito, Angola, on 27th January 2023, by the three Corridor Member States. This agreement serves as a framework for the three Member States to collaborate in the development of harmonised corridor laws, policies, regulations, and systems, including infrastructure development, in a coordinated and coherent manner
The harmonised policies, laws, and regulations, coupled with the developed infrastructure, will support the growth of economic clusters and enhance the participation of Small and Medium-sized Enterprises (SMEs) in the value chains of the mining and agriculture sectors. Moreover, the adoption of Simplified Trade Regimes (STR) will facilitate trade for Small Scale Cross Border Traders (SSCBT).
The 17th Session of the Committee of Directors-General of the National Statistics Offices (CoDGs), opens on December, 13, 2023, at the African Union HQ, under the AU 2023 theme “Acceleration of African Continental Free Trade Area (AfCFTA) Implementation”.
The Chair of the CoDGs, Mr. Ricardo Nsue Ndemesogo Obono, reminded participants about the main objectives of the CoDGs that focus on the Acceleration of African Continental Free Trade Area (AfCFTA) Implementation, and include among others to: (i) Provide a forum for member states to review and advise on the statistical programmes of the pan-African institutions based on the Second Strategy for the Harmonization of Statistics in Africa (SHaSA 2) guidelines, and ensure their relevance to the needs of African countries; (ii) Guide on the way to eliminate trade barriers and boost intra-Africa trade by using statistical information; (iii) Discuss challenges related to the acceleration of African AfCFTA through statistics in Africa; (iv) Discuss the challenges of producing data on Agenda 2063 and UN Agenda 2030 for Sustainable Development Goals (SDGs); (v) Ensure the coordination of statistical work of the various actors and mechanisms and their implementation in the continent; and (vi) Examine progress, identify problems, and propose solutions to existing and emerging issues on statistical development in Africa.
The ECA Office for North Africa and Oxford Economics Africa unveiled their latest joint report on Wednesday 13 October at the 2023 Arab SMEs Summitin Marrakech (Morocco).
The report, titled “Gender-Smart Investing for Inclusive Growth in North Africa” sheds light on major challenges women-led and owned firms face in North Africa and how gender-smart investment can help alleviate these issues. It presents governments and development actors with a range of recommendations for a successful implementation in the subregion. These include the need for an increased policy focus on female entrepreneurship and SMEs, improving policy alignment, leveraging support from a broader range of stakeholders, adopting a more holistic approach to gender-lens investing, and increased support and participations from development finance institutions, the private sector, and investors across North Africa and internationally.
U.S. lists gains of renewed engagement with Africa one year after summit (The Guardian Nigeria)
One year after hosting the United States-Africa Leaders Summit (USALS), principal officers of the U.S. government, yesterday, said America had delivered more than 40 per cent of commitments made at the gathering, which hosted about 50 African heads of government in Washington DC.
“Last year, the Biden-Harris administration said we would invest $55 billion in Africa over three years. As we wind down 2023, we have already delivered on more than 40 per cent of this commitment. By the end of year two, we anticipate surpassing 70 per cent of our goal, if not more. “And then our reform of the global governance architecture. For the first time, the African Union is part of the G20, our hope is that there will be a third seat for Sub-Saharan Africa at the IMF, as well as our commitment to the UN Security Council,” the American government stated.
COP28 delivers historic consensus in Dubai to accelerate climate action (COP28 UAE)
The UAE Consensus calls on Parties to transition away from fossil fuels to reach net zero, encourages them to submit economy-wide Nationally Determined Contributions (NDCs), includes a new specific target to triple renewables and double energy efficiency by 2030, and builds momentum towards a new architecture for climate finance. The UAE Consensus, which follows a year of inclusive diplomatic engagements and two weeks of intense negotiations, reflects the COP28 Presidency’s goal to provide the most ambitious response possible to the Global Stocktake and delivers on the central aims of the Paris Agreement.
COP28 outcome reflects lowest possible ambition acceptable – Least Developed Countries (EnviroNews Nigeria)
In a reaction to the outcome of COP28 arrived at in Dubai on Wednesday, December 13, 2023, Madeleine Diouf Sarr, Chair of the Least Developed Countries (LDC) Group, has said that the summit’s conclusion is imperfect as the group expected more.
In a statement made available to EnviroNews, she said: “We have taken stock of progress in implementing the Paris Agreement, and seen the world is well off track. The Dubai decision is historic in including the first reference to fossil fuels, but we are concerned about the loopholes that it leaves open, which could limit true emissions reductions and ambition.
To respond to the GST [Global Stocktake], the new goal must reflect the full needs of our countries to address climate change, including the costs to mitigate, to adapt, and to address loss and damage.” In a reaction to the outcome of COP28 arrived at in Dubai on Wednesday, December 13, 2023, Madeleine Diouf Sarr, Chair of the Least Developed Countries (LDC) Group, has said that the summit’s conclusion is imperfect as the group expected more.
Expert reaction to pledges emerging from COP28 (Science Media Centre)
Greenpeace Africa: COP 28 Agreement Good, But Action Better for Climate Crisis (Greenpeace Africa)
COP28 deal – Reactions from Germany and Europe (Clean Energy Wire)
SA welcomes COP28 agreement global adaptation efforts on climate change (SAnews)
The President of the African Development Bank Group Dr Akinwumi Adesina has reiterated his warning that the introduction of a carbon border tax by the European Union could push Africa back into exporting raw commodities and undermine its industrialisation gains. The European Union recently launched the initial phase of a Europe-wide carbon tax on imported goods as part of its climate change reduction measures. Adesina said this could penalize African countries.
“African companies that are making cement, steel, aluminium, fertilizers and trying to export to Europe are going to be charged a border tax of 80 euros per tonne. That is very expensive, and all that is going to do is that countries in Africa that already suffer from tariff escalation when they add value to what they produce, now you are forcing them down the value chain,” Adesina said.
President of Senegal: Equality and inclusion should remain at the heart of the WTO agenda (WTO)
Equality and inclusion must remain at the heart of the WTO’s work agenda in order to ensure a “place for everybody” in the global trading system, H.E. President Macky Sall of Senegal told an audience at WTO headquarters in Geneva on 13 December. President Sall was delivering the latest edition of the Presidential Lecture under the WTO’s Presidential Lecture Series.
Equitable global trade offers all countries the opportunity to engage their populations, especially young people and women, through the creation of employment, the creation of other income generating activities, and the development of value chains and value-added employment, President Sall told the audience. In contrast, unequal trade excludes and marginalizes the majority of countries and impoverishes them, contributing to growing problems such as surging migration.
UNCTAD releases Handbook of Statistics 2023 (UNCTAD)
UNCTAD released on 14 December its Handbook of Statistics 2023 – the global reference for trade and development trends published each year. It provides official statistics on how the global economy has evolved across regions, countries and sectors.
“Timely and quality data are critical now more than ever in an era of multiple global crises,” says Anu Peltola, head of UNCTAD Statistics. “These statistics will help countries take evidence-based decisions to tackle today’s challenges rather than yesterday’s.”
Some of the key trends for 2022 and 2023 highlighted in the report are:
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Trade in goods falls: Following a strong recovery from COVID-19 in 2021, goods exports increased by 11.4% in 2022, reaching $29 trillion. But trade statistics show a 4.6% decrease in the sector in the first half of 2023, and UNCTAD nowcasts a continued year-on-year decline for the third and fourth quarters.
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Trade in services continues to rise: Trade in services rebounded by 14.8% in 2022, surpassing pre-pandemic levels. Services trade grew more in developing countries, which in 2022 reached their highest global market share to date at 30%. Globally, UNCTAD nowcasts around 7% growth for the sector in 2023.
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Commodity exports increase: All major commodity groups saw significant trade increases in 2022. Fuel exports grew by nearly 62% due to higher prices. Food exports grew by 10%.
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South-South trade increases: The value of trade between developing countries grew by 13%. But developing economies still trade more with developed economies ($8.9 trillion) than among themselves ($6.1 trillion).
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Trade composition differs across regions: Africa’s exports are mainly primary goods (79% in 2022), while Asia and Oceania export mostly manufactured products (72% in 2022).
Delivering quality statistics for development: Five things to know (UNCTAD)
Why Digital Trade Should Remain Open (IMF)
Digital trade, from software sales to streaming movies, plays a bigger role than ever in the global economy. Yet with many developing countries struggling to fully participate in digital trade, now is the time for policy reforms that promote inclusion, starting with retaining the current tariff-free environment.
Digital trade has several unique benefits beyond traditional gains from trade. Software trade helps to digitalize the economy, increasing efficiency and boosting productivity. Trade in digital media, such as subscriptions to foreign journals, promotes interconnectivity, communication, and the transmission of knowledge and innovation. Finally, digital marketplaces, such as app stores or freelance programming websites, foster inclusion by reducing trade barriers for small firms and women-led businesses.
The value of global trade in digitally delivered products rose to $3.82 trillion last year, accounting for a record 54 percent share of services trade. With an 8.1 percent average annual growth rate for almost two decades, it has outpaced other categories like goods.
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Botswana: Budget in Q1 surplus but FY deficit still looms (Mmegi Online)
The national budget recorded a P5.2 billion surplus in the first quarter of the financial year, a performance expected to unravel later as the Finance Ministry still expects an overall P5.7bn deficit in the fiscal year.
Figures from the Ministry show that the surplus in the first quarter of the 2023-24 financial year, a period which covers the months between April and June, was powered largely by Southern African Customs Union (SACU) receipts and mineral revenues. The P5.2 billion surplus compares with a surplus of just P645.3 million for the first quarter of 2022-23 and a deficit of P1.4 billion for the same period in 2021-22.
Namibia: Staff concludes 2023 Article IV Consultation (IMF)
Namibia has shown resilience to the negative shocks from the COVID-19 pandemic and Russia’s war in Ukraine. Output has recovered to the pre pandemic level, inflation has fallen below 6 percent, and expectations remain anchored. Official reserves, at 4.7 month of imports in September, exhibit adequacy consistent with the peg to the rand. Prospects are brightened with discovery of oil and gas reserves. At the same time, Namibia is poised to benefit from the global pivot to green energy through its signature Green Hydrogen Project. Meanwhile, the challenge of improving public sector efficiency and reducing the large wage bill, not only for the sake of preserving debt sustainability, but also for the Namibian people to benefit the most from these new developments, remains paramount. Elections are scheduled for 2024.
Cote d’Ivoire: Poverty Reduction and Growth Strategy (IMF)
The implementation of the 2012-2015 and 2016-2020 National Plans of Development Plan (NDP) allowed the country to make significant progress and consolidate economic growth, despite a global context marked by trade tensions, a drop in commodity prices and the COVID-19 pandemic. Thanks to the implementation of far-reaching structural reforms, the economic growth rate has averaged around 8% over the 2012-2019 period, making the Ivorian economy one of the most dynamic in Africa and the world. Per capita income also doubled during this period, reaching 2,287 USD in 2020, one of the highest in West Africa.
Continued Reforms to Boost Macro-Economic Stability in Zimbabwe (World Bank)
Economic growth is projected to slow to 3.5 percent in 2024, a decrease from 4.5 percent in 2023, as agricultural output is expected to suffer from depressed global growth and the predicted erratic and below-average rainfall caused by the El Niño weather pattern, according to the fourth World Bank Zimbabwe Economic Update (ZEU) launched today.
According to the report, titled Electrifying Growth Through Reliable and Universal Energy Access, Zimbabwe’s economy has seen a strong rebound since the COVID-19 pandemic, making it one of the fastest-growing economies in the Southern African Development Community (2021, 2022, and, so far, in 2023). In previous years, Zimbabwe faced increased global turmoil, while expansionary monetary policy has put initial pressure on inflation and the exchange rate. Yet, since June 2023, the Government proactively tightened monetary policy to bring down inflation and the parallel market premium. It also extended the use of US dollars as legal tender until 2030, further reducing policy uncertainty.
Tanzania govt urges cement producers to explore opportunities in AfCFTA (The Citizen)
The minister for Industry and Trade, Dr Ashatu Kijaji, has challenged cement manufacturers to tap opportunities in the African Continental Free Trade Area (AfCFTA) as production increases. Dr Kijaji, who met the cement manufacturers, said annual cement production in Tanzania currently stands at 11 million tonnes, while domestic demand is estimated at 7.5 million tonnes.
“The government desires that the nation’s cement manufacturers produce cement with international quality and standards so that it can meet the needs and competition of the domestic and foreign markets,” she said. According to the National Bureau of Statistics (NBS), cement production, consumption, and exports rose by 14.9 percent, 9.8 percent, and 43.2 percent, respectively, last year.
Malawi Country Economic Memorandum Calls for Significant Policy Reforms to Achieve Higher Rates of Growth (World Bank)
Malawi’s per capita economic growth has been insufficient to reduce high and stubborn rates of poverty, according to the latest World Bank Country Economic Memorandum (CEM). The report argues that the pathway to achieve Malawi 2063, while achievable, is increasingly narrow and requires a fundamental shift in policy. Malawi, facing a “poly-crisis” from 2020-2023, has experienced negative per capita GDP growth, a surge in poverty levels, and severe food insecurity affecting more than one in five Malawians. The CEM identifies four core challenges that have hindered growth: declining exports, low savings and investment, slow structural transformation out of subsistence agriculture, and high vulnerability to climate.
The CEM, published every five years, provides a deeper analysis of Malawi’s economic situation. This edition, “A Narrow Path to Prosperity” highlights the urgent need for Malawi to adopt a new development model that can break this pattern and put the country back on track to achieve its development goals.
Nigeria: Turning the Corner, time to move from reforms to results (World Bank)
The Government of Nigeria avoided a fiscal cliff by implementing bold reforms, including ending the gasoline (premium motor spirit, PMS) subsidy, and shifting to a unified, market-reflective foreign exchange (FX) rate. These essential reforms entail painful adjustments. They have led to an increase of retail gasoline prices by an average of 163%. The naira has depreciated against the US dollar by approximately 41 % in the official market and by about 30% in the parallel market. To reap the benefits of the bold reforms and difficult but necessary economic adjustments now underway, it is essential to sustain and fully implement the reforms and take complementary actions.
This is the key message from the December 2023 edition of the Nigeria Development Update, titled “Turning the Corner”. The report adds that the recently launched cash transfer intervention to cushion the impact of increased gasoline prices on the poor and vulnerable is providing welcome relief to a growing number of households, with 5 million households expected to be covered by the end of December.
Iran exports non-oil goods worth $116.3m to Ghana in 7 months (Tehran Times)
Iran exported non-oil commodities valued at $116.3 million to Ghana during the first seven months of the current Iranian calendar year (March 21-October 22), the spokesman of Trade Development Committee of Iran’s House of Industry, Mining and Trade announced. Ruhollah Latifi also announced that the Islamic Republic imported products valued at $5.9 million from Ghana in the seven-month period.
Among the African trade partners of Iran in the first seven months of this year, Ghana was the first export destination of the Iranian products, and the third source of import to the country, he added.
Complaints about NTB still stands at 43.75% in the regional bloc (Monitor)
The East African Community Secretariat has said it still has unresolved complaints of the Non-Tariff Barriers standing at 43.75 percent by June 2023, which still affects the follow-up trade in the regional bloc. The NTBs pose a major problem for traders and producers, as they can reduce profits and limit market access. NTBs include issues that can hinder trading effectively such as discriminatory requirements for special licenses and permits, excessive paperwork, complicated customs procedures, and bureaucratic delays at borders.
“A significant number of NTB complaints were addressed (56.25%) and resolved within the given timeframe. However, a notable portion of complaints, specifically (43.75%) were still in progress by the end of June 2023,” EAC said in a press statement it issued over the weekend. The EAC secretariat said a recent EAC Regional Meeting Committee (RMC) report (2023) estimated the direct costs of NTBs at $16.7 million and total trade impact at $94.9 million decreasing trade by an average of 58 percent.
However, on the other hand in the press statement, EAC said since 2017, EAC has resolved 89.5% of the reported NTBs (EAC Time Bound Programme report, 2023).
Somalia’s inclusion in the EAC is multifaceted (Monitor)
Somalia’s Integration into the EAC is a catalyst for Economic Development, Security Cooperation, and Regional Unity.
The East African Community traces its roots back to the early 1960s when the East African Common Services Organisation laid the groundwork for regional cooperation. However, it was in 1967 that Kenya, Tanzania, and Uganda officially established the East African Community with the signing of the Treaty for East African Cooperation. The initial vision was to create a customs union and a common market, fostering economic integration and shared development goals. Over the years, the EAC has evolved, facing challenges such as political differences and the dissolution of the community in 1977.
Nevertheless, the commitment to regional cooperation prevailed, leading to the re-establishment of the EAC in 2000. The revitalised community expanded its membership, reflecting a renewed dedication to creating a prosperous, stable, and integrated East Africa.
NITDA Drives Digital Transformation For Seamless Trade Integration In West Africa (Science Nigeria)
The National Information Technology Development Agency (NITDA), operating under the Federal Ministry of Communications, Innovation and Digital Economy, is spearheading initiatives to dismantle physical trade barriers and foster economic growth across borders using digital technology. The director-general of NITDA, Mallam Kashifu Abdullahi delivered this vision during a goodwill message at the inaugural ‘Nigeria – Cote D’Ivoire Business Roundtable and Exhibition,’ held in Abuja on the margins of the 64th ECOWAS Summit.
In his welcome address, the director of the economic, trade and investment department at the Federal Ministry of Foreign Affairs, Amb. Akinremi Bolaji emphasised the significance of the event in assessing Nigeria’s readiness and collaboration between inter-agencies and the public-private sector. The goal is to expand the presence of Nigeria’s private sector in Cote D’Ivoire and the broader West African sub-region.
Bank of Botswana, ECA, and Frontclear strive to create a dynamic interbank money market (UNECA)
The United Nations Economic Commission for Africa (ECA) in collaboration with Bank of Botswana and Frontclear have launched a Money Market Diagnostic Framework (MMDF) to boost the country’s financial system. The MMDF provides critical insights for the holistic development of the money and interbank market, while identifying impediments and making sequential recommendations. The framework was launched at a workshop organized by the ECA, Bank of Botswana and Frontclear.
Speaking at the launch, Kealeboga Masalila, Bank of Botswana Deputy Governor, noted that a stable and inclusive money market was a prerequisite to increasing depth in local currency bond markets. Mr. Masalila acknowledged the role of interbank lending as the nucleus of the money market, where banks borrow and lend to each other using financial instruments such as repurchase agreements (repos) and hedge balance sheet risks through derivatives. The Bank of Botswana and banks are keen to develop the interbank market to deal with immediate liquidity concerns and to transmit changes in monetary policy.
As an emerging market, Botswana faces systemic challenges such as market segmentation and over-reliance on the banking sector as the only local source of liquidity. Besides, there are legal and regulatory challenges in enforcing global best practice legal documentation. However, the removal of these challenges can improve liquidity and the depth of the domestic and international investor base.
The ECOWAS Commission, the Implementing Agency for the Abidjan-Lagos Corridor Highway Development Project, will on December 15th, 2023, organize the twentieth (20th) Project Ministerial Steering Committee Meeting in Cotonou, Republic of Benin to assess the level of progress made so far, take critical decisions and to further fast track the implementation process.
The Honourable Minister for Infrastructure and Transport of the Republic of Benin will host the meeting while the Chairperson of the Ministerial Steering Committee and Minister of Works and Housing of the Federal Republic of Nigeria, Engineer David Nweze Umahi will chair the meeting.
The two-day expert meeting will review the progress made in the project since the 19th Experts and Steering Committee meeting held in May 2023 in Accra, Ghana and will outline measures to fast-track the processes leading to the completion of the project study phase and transit to the construction of the Highway.
The Board of Directors of the African Development Bank Group has approved various financing structures valued at $696.41 million for Burundi and Tanzania to start Phase II of the Joint Tanzania-Burundi-DR Congo Standard Gauge Railway (SGR) Project.
The Bank Group’s financing is intended to construct 651 kilometers on the Tanzania–Burundi railway line. The work will consist of the development of a single electrified standard gauge track. This will be subdivided into three lots: Tabora–Kigoma (411 km) and Uvinza–Malagarasi (156 km) sections in Tanzania; and the Malagarasi–Musongati section (84 km) in Burundi. This standard gauge railway project will be connected to the existing railway network of Tanzania, providing access to the port of Dar es Salaam. In total, 400 kilometers of rail infrastructure has already been built in Tanzania from Dar es Salaam to Dodoma since the start of the first phase of the project. The rest of the section from Dodoma to Tabora is under construction.
Africa must drive domestic revenue mobilization for sustainable development (UNECA)
African countries need to effectively manage their resources to drive domestic revenue mobilization for sustainable development, a regional meeting on tax expenditure governance in Africa, heard. Opening a one-day workshop on issues of tax expenditure governance in Africa, Economic Commission for Africa (ECA) Director for the Macroeconomics and Governance Division, Adam Elhiraika, noted that Africa faced a huge financing deficit which has constrained its ability to achieve the Sustainable Development Goals (SDGs) and Agenda 2063. Besides, the continent was battling high debt levels, some estimated at 64 percent of the GDP. Therefore, it is imperative for African countries to raise domestic funding if they are to meet the SDGs and achieve Agenda 2063.
“Effective governance of all resources including tax incentives that are provided in different forms by governments with the objective to attract investment is needed,” Mr. Elhiraika said, raising concern that “often these tax expenditures are not well targeted, not well measured and not well covered and they end up abused in many cases, fueling rent seeking, corruption and massive losses to governments.”
Africa is making strides in its visa openness policies boding well for cross-border travel, ease of movement and trade in 2024 and beyond. The Africa Visa Openness Index 2023, published on Tuesday, reveals much progress since the seventh edition of the report was published in December 2022.
In 2023, data from the report shows that 50 countries improved or maintained their 2022 score, with only 4 countries scoring lower. Since the first report was published in 2016, 36 countries have improved their score on the index. Forty-two (42) countries extend visa-free entry to citizens from at least 5 other African countries, while 33 countries do so to citizens of at least 10 countries. Four countries – up from three last year – have eliminated all visa requirements for African travelers. They are Rwanda, Benin, The Gambia, and Seychelles. Embracing liberal visa policies will not only facilitate seamless travel but also contribute significantly to enhanced trade in goods and services, cross border investment and shared prosperity.
AfDB wants intensified efforts at curbing illicit financial flow in Africa (Businessday NG)
In the ongoing battle to safeguard Africa’s financial systems, experts are sounding the alarm for increased measures to combat illicit financial flows. The continent faces a significant challenge as it grapples with the detrimental impact of funds siphoned away through corruption and other illicit activities.
Recognizing the urgency of the situation, experts are advocating for heightened efforts and strategic interventions to curb the flow of illicit finances, aiming to fortify Africa’s economic stability and foster sustainable development. Lamin Barrow, Director General of the Regional Development and National Governments (RDNG) at the African Development Bank Group, delivered a warm welcome at the closing session of the Executive Training Program on “Enhancing Accountability, Transparency, and Curbing Corruption and Illicit Financial Flows in Africa.” The event, commenced from December 11 to 13, marked the final module before the graduation of the first cohort of the Public Finance Management Academy for Africa (PFMA) Public Finance Management Executive Training Series.
SA trade with China grows over 35 times (The Citizen)
From $1.6 billion (about R30.5 billion) to nearly $57 billion is how the volume of the bilateral trade between China and South Africa has grown – 25 years after establishing diplomatic ties. China and South Africa on Tuesday celebrated the years of diplomatic relations with the theme “forward together: Into the golden era of China-South Africa relations”.
Chinese ambassador to SA Chen Xiaodong said by last year, the China-SA trade volume grew over 35 times to $57 billion – equivalent to one-fourth of China-Africa trade. “South African beef, citrus, red wine, oysters, rooibos tea and other products, are popular among Chinese consumers. “Chinese enterprises have invested over $25 billion in South Africa, which is 100 times more than 1994, having created more than 400 000 jobs,” said Chen.
US hails ‘record’ year for trade with Africa (Eyewitness News)
The United States has struck hundreds of deals worth $14.2 billion with African nations over the past year, government officials said on Wednesday, as Washington seeks to counter China’s growing influence on the continent. The 547 new trade and investment agreements represent a 67% increase on 2022 in the number and value of closed deals, said British Robinson, coordinator for the US administration’s Prosper Africa trade and business initiative.
“We have had a record-setting year for US-African relations,” added Judd Devermont, President Joe Biden’s top Africa advisor. Devermont and Robinson were speaking at a virtual media briefing marking the first anniversary of a summit with African leaders, where Biden pledged to go “all in” on the continent. The announcement comes as Washington seeks to deepen engagement with Africa, where China has enjoyed rising clout.
Nations at COP28 in Dubai approved earlier on Wednesday a roadmap for “transitioning away from fossil fuels” – a first for a UN climate conference – but the deal still stopped short of a long-demanded call for a “phaseout” of oil, coal and gas. Reacting to the adoption of the outcome document, UN chief António Guterres said that mention of the world’s leading contributor to climate change comes after many years in which the discussion of this issue was blocked. He stressed that the era of fossil fuels must end with justice and equity.
In his statement, Mr. Guterres said the science is clear in that limiting global heating to 1.5°C, one of the keystone targets set in the landmark 2015 the Paris Agreement, “will be impossible without the phase out of all fossil fuels”, and this is being recognized by a growing and diverse coalition of countries. The negotiators at COP28 also agreed on commitments to triple renewables capacity and double energy efficiency by 2030 and made progress in relation to adaptation and finance. Other progress was also made in relation to adaptation and finance, including – including the operationalization of the Loss and Damage Fund, even though financial commitments are very limited, according to the Secretary-General.
COP28: African Development Bank, international partners commit to Climate Resilient Debt Clauses (AfDB)
The African Development Bank Group announced its adoption of climate resilient debt clauses (CRDCs) on 12 December, joining major creditors and international development banks at a COP28 session organized by the UK, Barbados and the InterAmerican Development Bank under the auspices of the Bridgetown Initiative.
Borrowing nations will get a debt payment respite up to two years when disasters strike. Seventy-three countries worldwide, including many of the most climate vulnerable, now urge all creditors to adopt urgently CRDCs terms to provide financial security against accelerating climate impacts. “We now have five multilateral development banks on board,” said UK Minister for Development and Africa Andrew Mitchell. “I look forward to how other multilateral development banks will match this offer next year,” Mitchell added. The MDBs are responding.
The Gambia, UK formally accept Agreement on Fisheries Subsidies; UK pledges to the Fund (WTO)
The Gambia and the United Kingdom deposited their instruments of acceptance of the Agreement on Fisheries Subsidies on 13 December, advancing the tally of formal acceptances to the halfway mark required for entry into force. Baboucarr Ousmaila Joof, Minister of Trade, Industry, Regional Integration and Employment of the Gambia, and Andrew Mitchell, Minister of State (Development and Africa) of the UK presented the instruments of acceptance to Director-General Ngozi Okonjo-Iweala. The UK also announced its pledge to donate up to GBP 1 million (approximately CHF 1.11 million) to the WTO Fisheries Funding Mechanism.
DG Okonjo-Iweala: It’s time to “dramatize” Geneva to deliver concrete outcomes for MC13 (WTO)
In her report to a meeting of the WTO’s Trade Negotiations Committee (TNC) on 12 December, Director-General Ngozi Okonjo-Iweala said it was incumbent upon WTO members to deliver concrete outcomes at the upcoming 13th Ministerial Conference (MC13) in Abu Dhabi next February. To achieve this, negotiators “need to conclude as much of the negotiations we can in Geneva” before the start of MC13.
“The world economy is not in good shape,” the Director-General told members in her capacity as TNC Chair. “We know people are bearing the brunt of slow growth, volatile prices, climate impacts and debt pressures. We have a responsibility to contribute to efforts to reinvigorate growth and opportunities for people everywhere.” For this reason, “we must have a substantive and meaningful Ministerial with concrete results,” she said.
Small business group engages with academics, private sector to discuss MSME inclusion (WTO)
Two papers from the Philippines assessed the impact of free trade agreements on the manufacturing performance of small businesses in the Philippines and reviewed MSME provisions in the Asia-Pacific Economic Cooperation (APEC) economies. As part of the group’s ongoing efforts to engage with the private sector and other stakeholders, members heard from the International Trade Centre (ITC), the Digital Cooperation Organization (DCO) and a business owner operating in Barbados.
WTO members discuss proposals on work programme on e-commerce (WTO)
In their last dedicated discussion of the year on the Work Programme on E-commerce on 8 December, WTO members discussed text proposals for a ministerial decision to be considered at the 13th Ministerial Conference (MC13) in February 2024. The proposals address progress under the Work Programme, the moratorium on the imposition of customs duties on electronic transmissions and the development dimension of e-commerce.
Bhutan exits UN list of least developed countries (UNCTAD)
“UNCTAD has continuously supported LDCs to embark on a sustainable development path and participate in the benefits that enhanced productive capacities bring to job creation, income generation, productivity, and value addition,” said UNCTAD Secretary-General Rebeca Grynspan. Looking ahead, UNCTAD cautions that the measurable progress justifying an LDC’s graduation doesn’t necessarily equal economic transformation or the sophistication of support needed to steer the economy through its next phase of development.
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South Africa to seek bids for new nuclear power station (Reuters)
South Africa will launch a bidding process for an extra 2,500 megawatts (MW) of nuclear power by March, as the country attempts to tackle its worst power outages on record. Businesses and households have been left without power for up to 10 hours on some days this year, hitting South Africa’s economic output and prompting plans to boost generation. However, officials said on Tuesday that the new nuclear power procurement is not a short-term fix, as the first units are only expected to start operating in a decade.
“We are excited about the prospects and we are confident about our ability to ensure that within a reasonable period of time we are able (to announce) preferred bidders,” Electricity Minister Kgosientsho Ramokgopa told a news conference. Ramokgopa reiterated that South Africa, which has the African continent’s only operational nuclear power plant, Koeberg, close to Cape Town, will build new ones at a scale and pace it can afford. Meanwhile, financing and long-term storage options for radioactive waste remain concerns, environmentalists say.
Cranes added at Transnet’s Cape Town Container Terminal to boost productivity (SAnews)
Transnet’s Cape Town Container Terminal (CTCT) has received a delivery of seven pre-used rubber-tyred gantry cranes (RTGs). The acquisition of the RTGs is part of the State-owned entity’s turnaround plan, whose key priorities include equipment availability, in order to support operational efficiencies. Western Cape Terminals Managing Executive, Andiswa Dlanga, said: “The acquisition of additional RTGs in our terminal will go a long way in offering a reliable service to our customers, a much-needed boost for the growth of the Western Cape and South Africa’s economy.
“As a business, we are committed to deliver on our promise to customers and industry, thus equipment availability and reliability are at the core of what we do. These additional machines will enable us to improve operational performance and turn-around vessels on time”. In a statement, Transnet Port Terminals [TPT] explained that the new cranes will bring the number of TRGs operating at the CTCT to 27 – a timely boost as ahead of the peak of the deciduous season which is the terminal’s busiest time.
Trade ministry consults on key laws and policies (New Era)
The industrialisation and trade ministry has undertaken public consultations on three key legislative and policy documents pertaining to several pertinent issues in a clustered format to gather input from all stakeholders. The consultations touch on the Special Economic Zone Bill (SEZ), the National Informal Economy, Start-ups and Entrepreneurship Development Policy (NIESED), Namibia Investment Promotion and Facilitation Regulations, and the National Cooling Strategy.
“Namibia has phased out the Export Processing Zones (EPZ), and is currently transitioning to the Special Economic Zone (SEZ). The EPZ proved unsuccessful, yielded no requisite tax to the Treasury, and led to Namibia being almost blacklisted as a tax haven. This necessitated the reconsideration of the EPZ, and the need to seek for a more conducive and sustainable regime, hence the shift to SEZ,” he stated.
New Study Suggests Ways to Boost Algeria’s Disaster Resilience (World Bank)
More frequent forest fires, floods, and earthquakes have caused substantial human and economic losses in Algeria, says a new joint study from the World Bank and the National Delegation for Major Risks, which identifies priority actions that could help to boost Algeria’s resilience to future climate and disaster risks. Titled, “Diagnostic on Climate and Disaster Risk Management in Algeria,” the study looks at the economic impact of disasters in the country and highlights the strengths and weaknesses of Algeria’s current disaster risk management efforts.
The Algerian government estimates that annual spending over the past 15 years to address floods, earthquakes, and forest fires averages around USD 255 million (DZD 35,14 billion), with about 70% allocated to floods. Looking ahead, the study forecasts that disaster losses could average around 0.7% of the country’s GDP per year, nearly double the historical average. This increase is largely due to the potential of a devastating earthquake in urban areas, which are experiencing rapid population growth and are most exposed to such events.
Botswana trade restriction thwarts Customs Union objectives (IOL)
On December 6, 2023, the government of Botswana announced that they are extending the restriction period for vegetable imports, which was due to expire at the end of December 2023. The extension period is up to December 2025 and the list of restricted vegetable products has been expanded, which does not bode well for South African farmers.
To South African farmers, Sacu is not only a destination market, but also a partner in developing agriculture and expanding Sacu’s agricultural export footprint in the continent and beyond. As such countries like Botswana and Namibia are strategic transit of vegetable products originating from South Africa.
Border closures also affects other agricultural products, which might have long-term consequences for Botswana citizens, especially products that cannot be grown locally due to environmental conditions, skills, and technical and physical infrastructure challenges.
Geingob ropes Masisi into SACU stand-off (Mmegi Online)
When they last met to discuss a joint industrialisation bid last April, member states of the Southern African Customs Union (SACU), opted for diplomacy and spoke of regional unity for investment, rather than the restless elephant in the room.
Last week, at a year-end media briefing in Windhoek, Namibian president, Hage Geingob, lifted the lid on the long-simmering issue of industrial imbalance in the region and pointed accusing fingers at South Africa. The 82-year-old political veteran who retires in just over a year is well-known for shooting from the hip, earning a reputation for blunt frankness in his remarks.
Africa’s top 10 major ports in race for greater share of global trade (The Independent Uganda)
The opening of Nigeria’s ‘game-changing’ billion-dollar deepwater seaport in Lekki, in early 2023, together with other ongoing and upcoming projects around the continent reflects an increasingly competitive race for the top shipping hub slots in Africa. Currently, a host of other major multi-billion dollar investments geared towards improving existing infrastructure or putting up new ports are ongoing in countries including South Africa, Morocco, Algeria, Angola, Egypt and Senegal.
Among the largest investments announced so far is the US$7 billion to upgrade to the South African Port of Durban in a facelift that will expand its container handling capacity from 2.9 million units to 11 million.
According to the African Union, more than 90% of Africa’s imports and exports are transported by sea, making the continent a strategic gateway to global trade. UNCTAD data shows Africa accounts for 2.5% of exports and 3% of imports in world merchandise trade by value by 2020. An ‘Africa ports race’ that started in the 1990s is expected to significantly bolster the continent’s maritime trade.
AfDB set to tackle illicit financial flows, corruption in Africa – Official (Vanguard)
In its efforts to tackle illicit financial flows and corruption in Africa, the African Development Bank (AfDB) has begun the training of relevant stakeholders to build their capacity.
Dr Eric Ogunleye, the Acting Director and Division Manager, Policy Management at the African Development Institute of AfDB, said this in Abuja. Ogunleye spoke during the Public Financial Management (PFM) Executive Training Education of the Public Financial Management Academy for Africa (PFMA) held in Abuja.
The training was organised for mid-to senior-level officials from the Ministries of Finance and Planning, central banks, and other public financial management institutions from across African countries. Participants were also drawn from key anti-corruption agencies and statistical offices. The theme of the training is “Enhancing Accountability, Transparency, and Curbing Corruption and Illicit Financial Flows in Africa.”
Bitcoin can transform, accelerate African trade (Graphic)
Bitcoin, a digital currency platform, has the potential to accelerate e-commerce, drive financial inclusion, accelerate trade and empower the youth on the African continent, an expert has said. In an interview with some selected media at the 2nd edition of the African Bitcoin Conference (ABC) in Accra, the convener of ABC, Farida Nabourema, said although many people have adopted the use of bitcoin, there were still scores of Africans who were still uninformed about the role of bitcoin on the digital economy.
Ms Nabourema explained that the multiple currencies in Africa were complicating cross-border trade due to exchange rate fluctuations and transaction costs. She said Bitcoin, being a decentralised digital currency, could potentially streamline international transactions by providing a unified and efficient medium of exchange.
In order to galvanise a responsive regional civil society, the ECOWAS Commission will hold an internal consultative Workshop on the establishment of an Economic, Social and Cultural Council in West Africa (ECOSOCC-WA), beginning from the 12th of December, 2023, in Lagos, Nigeria. The two-day Workshop brings together officials from the relevant ECOWAS Departments, Directorates and Divisions who are to jointly lay a solid foundation for the creation of ECOSOCC-WA while strategically positioning the regional organisation for the attainment of its 4 x 4 objectives and Vision 2050, among others.
The participants will also be deliberating on the vision, mission, and relevance of ECOSOCC-WA within the context of the wider efforts aimed at consolidating democracy, peace and security in view of the unprecedented political instability and insecurity, governance challenges as well as the resurgence of coups, including the rise, in recent times, of terrorism and organized crimes in the region.
Empowering entrepreneurship and SMEs discussed at Arab SMEs Summit in Marrakech (UNECA)
The UN Economic Commission for Africa (ECA), the UN Economic and Social Commission for Western Asia (ESCWA) and the Moroccan Ministry of Economic Inclusion, Small Business, Employment and Skills are convening a High-Level Policy Dialogue from 12-14 December 2023. This event, under the theme “Empowering Entrepreneurship in the Arab Region,” is a key part of the Arab SMEs Summit 2023.
This high-level dialogue aims to foster the exchange of ideas, strategic visions, best practices as well as regional and international partnerships in support to the entrepreneurial landscape in North Africa and the Middle East. Discussions will focus on three main issues: streamlining registration and formalization processes for SMEs, enhancing the inclusivity of entrepreneurial opportunities and exploring prospects for regional and international cooperation in this field.
Climate summit in Dubai goes into overtime as bitter division over fossil fuels delays agreement (CNN)
The global climate summit went into overtime on Tuesday with no deal on the meeting’s final agreement, and countries are bitterly divided over whether to call time on fossil fuels. Negotiators are scrambling last-ditch meetings to salvage more ambitious language to address the cause of the climate crisis.
The latest draft of the COP28 summit’s centerpiece agreement published Monday dropped previous references to phasing out fossil fuels, stoking anger and frustration among some nations and advocates. More than 100 countries support a phase-out of fossil fuels in some form. Instead, the watered-down draft offers a list of actions that countries “could” take to reduce their planet-heating emissions, one of which is reducing the consumption and production of oil, coal and gas.
COP28: Draft global stocktake exhibits ‘alarming changes’ as deadline looms (ESG Clarity)
The “highest levels of ambition” are on the table for the final global stocktake, according to Simon Stiell, executive secretary of the UN Climate Change Committee, with finance “the bedrock to scale-up climate action on all fronts”. His comments came at a media stakeout, held at the event on the eve of its conclusion, in which Stiell also stressed: “The reality is the highest ambition outcomes are the only way for all governments to leave Dubai with a win under their belt. One thing is for certain: ‘I win – you lose’ is a recipe for collective failure. Ultimately, it is eight billion people’s security that is at stake.”
COP28 will see the first global stocktake published, taking into account climate initiatives and action achieved since the Paris Agreement, as well as setting out how to overcome obstacles on the path to net-zero. Earlier draft texts of the stocktake included an option to “phase out fossil fuels in line with best available science”. But, according to UNEP’s head of climate risk and TCFD, David Carlin, more recent drafts point to some “alarming changes”
Equitable transformation of agrifood systems finally on menu at COP28 (Daily Maverick)
A day dedicated to food was finally held at this year’s global climate gathering, the 28th Conference of the Parties (COP28) in Dubai, United Arab Emirates, emphasising fighting global hunger while aligning with the 1.5°C goal of the Paris Agreement.
The Food and Agriculture Organization (FAO) of the United Nations released a report on Sunday — Food, Agriculture and Water Day at COP28 — titled Pathways towards lower emissions; a global assessment of the greenhouse gas emissions and mitigation options from livestock agrifood systems. The report is an effort by the FAO to ensure the food production industry takes measures to align itself with lowering emissions and implementing mitigation measures.
The report looks into emissions from livestock agrifood systems, land-use change and supply chain processes. The food and agricultural sectors rely heavily on natural resources such as water and land, placing a heavy impact on the environment.
COP28’s Food, Agriculture and Water Day saw major announcements on climate action for both water and food security and decarbonization, as countries demonstrated their commitment to implement the COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action. H.E Mariam bint Mohammed Almheiri, UAE Minister of Climate Change and Environment and COP28 Food Systems Lead, said:
“To achieve the goals of the Paris Agreement, to keep 1.5C within reach, we must address the connection between global food systems, agriculture, and the climate. At COP28, we have built the foundations for action, which commit 152 countries to transform their food systems, and embedding those commitments in their climate strategies, all the while ensuring they are protecting the livelihoods of those who depend on those sectors. Together, we must build a global food system that is fit for the future. Today marks an important moment in achieving this.”
Climate and Health at COP28: Treating the Symptoms or Causes? (tralac)
Air pollution causes over 8 million deaths per year. By 2050 extreme heat, diarrhea, dengue, malaria, and malnutrition (stunting) will together cause 21 million more deaths than there would be without climate change. At COP28 in Dubai, state parties are rightly recognising the climate crisis as a health emergency – for the first time – with a Declaration on Climate and Health. COP28 has also seen the launch of a new set of Guiding Principles for Financing Climate and Health Solutions, a dedicated Health Day and over $2.7 billion pledged to health initiatives related to climate change. While these achievements are laudable, the lack of acknowledgement of the role of fossil fuels, specifically, has led to widespread criticism. It has also led to a Call to Action on Climate and Health from the World Health Organisation (WHO) which advocates for the phase-out of fossil fuels.
COP28 Climate Funds Pledge Tracker (NRDC)
The big injustice of the climate crisis is that the poorest and most vulnerable communities, who have done the least to cause the problem, are hit first and worst by the impacts. In an effort to help address this, governments meeting as the Conference of the Parties (COPs) to the UN climate convention have created a number of multilateral funds that pool contributions from many contributors and provide dedicated support to help developing countries reduce greenhouse gas emissions and address the impacts of climate change.
At COP28 in Dubai, rich countries are under pressure to rebuild trust with developing countries after the failure to deliver the $100 billion per year goal on time and recent data showing they are off track to doubling adaptation finance from 2019 levels by 2025. One way they can do this is to announce pledges to UN climate funds.
Climate change negotiators in Africa have called on COP28 to deliver a fair and balanced Global Stocktake that catalyses greater ambition across all elements of climate action in Africa, centred on equity for a Just Transition.
“The just transition and resilient low‐carbon development, if not properly designed, risks widening the developmental gap between Africa and the rest of the world,” said Collins Nzovu, Zambia’s Minister of Green Economy and Environment and Chair of African Group of Negotiators on Climate Change (AGN) in a statement read on his behalf by James Murombedzi, chief of Climate Change Section at the Technology, Climate Change & Natural Resource Management Division at the ECA.
For his part, Mwenda Mithika, Executive Director Pan African Climate Justice Alliance (PACJA) said as COP28 concludes, African countries need to reflect and ensure that key issues that include adaptation and finance are addressed “to captures the spirit of Africa.” “If these crucial issues are not captured in the final declaration then we shall declare COP28 a failure,” said Mr Mithika. “The issue of adaptation and adapation finance is critical for us. We have only US $39 million pledges, loss and damage pledges need to be honored. The green climate fund still remain a shell. These need to be clearly addressed.”
Alarm bells ignored as Africa continues to face deepening food crisis (FAO)
Africa is confronting an unprecedented food crisis, according to a new report, The report, Africa Regional Overview of Food Security and Nutrition - Statistics and Trends 2023 highlights alarming statistics on food insecurity and malnutrition that underscore the urgent need for comprehensive action.
Nearly 282 million people in Africa (about 20 percent of the population) are undernourished, an increase of 57 million people since the COVID-19 pandemic began. More than a billion people are unable to afford a healthy diet. Around 30 percent of children are stunted because of malnutrition.
Africa remains off-track to meet the food security and nutrition targets of the Sustainable Development Goals by 2030, and the Malabo targets of ending hunger and all forms of malnutrition by 2025.
DDG Paugam: WTO rules help to combat illegal food trade (WTO)
Speaking at a virtual agriculture symposium titled “Illicit Trade in Food and Food Fraud” on 11 December, Deputy Director-General Jean-Marie Paugam emphasized that the WTO rulebook brings a legal framework to international food trade, helping to combat illicit trade. He said: “By definition, our DNA is legal trade. Strengthening the WTO is the first way to combat illicit trade.”
Highlighting the WTO’s unique role in promoting open and legal trade, DDG Paugam said WTO rules allow members to exercise control over their borders and enforce their trade laws, leaving less room for illegal trade. DDG Paugam said an important aspect of WTO activities is encouraging members to lower trade barriers as lower prices for legal goods can be one of the good ways of reducing the incentive for illegal trade, although “one size doesn’t fit all”.
Chair cites “clear desire” of ministers to deliver outcomes at MC13 (WTO)
Senior trade officials attending a virtual “mini-ministerial” on 11 December have expressed a “clear desire” to advance work on development issues as well as on e-commerce, with the aim of achieving concrete outcomes at the WTO’s 13th Ministerial Conference (MC13) next February in Abu Dhabi. This was the conclusion of Dr Thani bin Ahmed Al Zeyoudi, the United Arab Emirates’ Minister of State for Foreign Trade and MC13 Chair, at the end of the virtual gathering.
“There is a clear desire to advance together to enable the WTO to facilitate the achievement of members’ development objectives, including addressing challenges and seizing opportunities provided by e-commerce,” Minister Al Zeyoudi said. WTO Director-General Ngozi Okonjo-Iweala called on ministers to use the remaining time left before MC13 to focus on delivering meaningful outcomes that will “deliver for all our citizens” at a time of increased economic challenges.
Members discuss tourism services, implementation of MC12 mandates in Services Week (WTO)
WTO members discussed tourism services in the wake of COVID-19 at a session held on 6 December under the aegis of the Council for Trade in Services. They continued addressing implementation of mandates from the 12th Ministerial Conference (MC12) and reviewed the participation of least developed countries in services trade among other issues at the Council meeting on 7 December. At a webinar on 5 December, participants looked at access to information on policies and regulations affecting services trade.
The WTO Secretariat said in a presentation that trade in tourism recorded a decline of 38 per cent in 2020 due to the collapse of international travel but is now on course for a full recovery and a return to its pre pandemic levels.