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President Ramaphosa’s closing remarks during the 3rd Session of The South Africa Bi-National Commission, Windhoek, Namibia (The Presidency of South Africa)
The Ministerial Report that we have just considered and approved has over 170 decisions across various areas of cooperation. This is testament to the thorough and commendable work of our respective Ministers and Officials.
Namibia is South Africa’s largest trading partner in the region. There is capacity to increase our exports to Namibia beyond current products such as chemicals, machinery, vehicles and steel. Similarly, Namibia could go beyond exporting precious metals, iron and steel products, live animals and other goods to South Africa. We have directed our ministers of trade and investment to finalise the draft agreement of cooperation to promote investment, industrial development, cross-border value chains and infrastructure development by March 2024.
This will enhance trade between the two countries and further contribute to the realisation of our regional and continental economic integration agenda. It will give more impetus to implementation of the African Continental Free Trade Area.
Automotive manufacturing gaining traction (Engineering News)
In a keynote address on October 13, Deputy President Paul Mashatile noted the importance of collaboration between the local sector and government with regard to growth in local manufacturing, highlighting the need for policies that incentivise industry participants to produce vehicles in the domestic market. “…the performance of the South African automotive industry is contingent upon a strategic collaboration between the sector and government in order to foster growth, create employment as they advance industry, particularly in the realm of manufacturing.”
Automotive transition presents value chain opportunities (Engineering News)
The transition of the automotive industry to new-energy vehicles holds potential to impact on many other industries, including mining, manufacturing, freight and energy, but collaboration and a policy framework are urgently needed, as current choices will affect the efficiencies of transport for the coming decades. These are some of the topics discussed by automotive industry professionals during the intermodal transport roundtable discussion held on October 11, in Midrand, during the South African Auto Week.
Developing sustainable mobility as part of the transition to net-zero is a huge challenge across the world, as all transport solutions must also be economically viable and transportation must be affordable. The transportation sector also accounts for about 25% of global greenhouse gas emissions, emphasised industrial equipment and technology company Robert Bosch director Björn Noack.
“A key recommendation, which will however not see a payoff within 12 months, is for companies to look at which state of the art trucks they should add to their fleets, as the powertrain efficiency of the trucks that we populate now will be in use for more than the next ten or twenty years and have a direct impact on the efficiency of the transport sector. This is not the time to hesitate,” he emphasised.
Trade, Industry and Competition on implementation of the African Continental Free Trade Area (AfCFTA) (South African Government)
The successful implementation of the African Continental Free Trade Area (AfCFTA) is expected to lead to diversification of exports and increased productive capacity. This is according to the Director of African Union and Africa Multilateral Economic Relations at the Department of Trade, Industry and Competition (the dtic), Ms Claudia Furriel.
Furriel was unpacking the AfCFTA Agreement at the webinar that was intended to engage the chemicals, cosmetics, plastics, and pharmaceutical sectors, as well as industry agencies, associations, and export councils including their members, on the benefits of exporting under the AfCFTA. The webinar was hosted by the dtic.
The Scientific Director at L’oreal South Africa, Ms Dershana Jackison, described the AfCFTA as a key business, regulatory and policy instrument that will shape the cosmetic market of the future. She urged industry players and trade associations to actively participate in its implementation and for government to ensure that the cosmetic sector is prioritised.
Kenya’s trade deficit narrows by $726m (The East African)
Kenya’s trade deficit for the first eight months of the year narrowed by nearly double digits on falling import bills due to reduced expenditure on materials for factories, machinery for infrastructure projects, and fuel. The deficit – the gap between merchandise exports and imports – fell to Ksh1.01 trillion ($6.8 billion) from nearly Ksh1.12 trillion ($7.51 billion) a year ago, provisional official data showed.
The 9.70 percent, or Ksh108.42 billion ($726.92 million), drop in the merchandise trade came at a time when growth in the manufacturing sector showed signs of a slowdown while the new administration cut investment in mega public infrastructure projects.
The Ambassador of Angola to Botswana and SADC Her Excellency Dr. Beatriz Antónia Manuel De Morais paid a courtesy call on the Executive Secretary of SADC, His Excellency Mr Elias Magosi on 12 October 2023, and reiterated her country’s commitment to support implementation of SADC’s regional integration programmes. Ambassador Morais restated the Republic of Angola’s readiness to work with the SADC Secretariat in implementing the 43rd SADC Summit theme, titled “Human and Financial Capital: The Key Drivers for Sustainable Industrialisation in the SADC Region’’ and to support with the implementation of decisions of SADC.
Botswana expo amplifies Zim investment, export opportunities (The Herald)
The ongoing 2023 Global Expo Botswana has offered Zimbabwe a prime opportunity to showcase its vast investment opportunities and export of various goods and services into the region and beyond. With 23 participating companies here, Zimbabwe is one of the largest exhibitors and its businesses are a centre of attraction as potential buyers and investors make enquiries on different products and services.
Today ZimTrade, the country’s trade development and promotion organisation, which facilitated the participation of local businesses at the expo, held a session with delegates to unpack various aspects of doing business with Zimbabwe and highlighted the vast export opportunities.
ZimTrade client advisor, Ms Nozipho Maphala, delivered the presentation in which she explored Zimbabwe’s exporting profile covering different products and service offers across economic sectors. She said the country was transforming its economy and diversifying its exports so as to grow the gains beyond the traditional export partners- South Africa and the European Union.
BoG Governor pushes for speedy debt restructuring under G20 Common Framework (MyJoyOnline)
The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has pushed for a fast-tracked debt restructuring for vulnerable countries under the Group of Twenty (G20) members, including Ghana, Ethiopia, and Malawi. This comes on the back of recent agreements reached between Zambia and Chad and its creditors, and the need to safeguard these countries from any domestic financial market instability, Dr Addisson said.
He was speaking at an African Caucus Meeting on “Making public debt useful for sustainable growth in Africa,” at the ongoing International Monetary Fund (IMF)/World Bank Group (WBG) Annual Meetings in Marrakech - Morrocco.
“While welcoming the latest developments on Zambia and Chad, we underscore the need to revamp the G20 Common Framework (CF) to ensure timely, orderly, equitable, inclusive, and transparent debt restructuring for distressed members in the region (including, Ghana, Ethiopia, and Malawi),” he said. “We also call for a carefully designed debt resolution mechanism, especially, for vulnerable members with large-domestic creditors (as in the case of Ghana) to help avert domestic financial market instability,” the BoG Governor added.
GEF2023: Farmer-driven policies must lead food security efforts (The Business & Financial Times)
Experts at the 2023 Ghana Economic Forum (GEF) have advocated new approaches which put farmers at the forefront of national efforts to address food security concerns. As producers, they said, any policy aimed at boosting production and food security must first and foremost speak to the needs and concerns of farmers if they are to yield the needed outcome; calling for a shift from the current top-down approach of policy formulation to a bottom-up regime.
The experts, during a panel discussion on the topic ‘Ensuring food sustainability and security: a call for new perspectives on the agricultural value chain systems’, came to a consensus that the current status quo – wherein there exists a gulf between policies and reality – cannot continue. They attributed the failure of numerous agricultural interventions by governments to their inability to address stakeholder concerns.
Give us bank of manufacturing, MAN pleads with FG (Tribune Online)
The Manufacturers’ Association of Nigeria (MAN) has called on the Federal Government to constitute a financial institution, a bank of manufacturing, whose sole mandate will be to offer financial services to operators in the real sector of the economy. President of the association, Francis Meshioye, made the call on Wednesday, at the association’s 51st Annual General Meeting media briefing, held in Lagos.
Meshioye stated that Nigeria’s manufacturing sector, as a catalyst for nation’s economic growth, is rather too big to be without a bank specifically designed to take care of its financial interests and needs. He argued that though there are commercial banks and even Bank of Industry (BOI), the sector cannot really leverage those financial institutions for development since they do not find the sector attractive to earn their commitments.
MAN to x-ray Nigeria’s competitiveness under African free trade deal (Vanguard)
The Manufacturers Association of Nigeria (MAN) is set to use its forthcoming 51st Annual General Meeting (AGM) as a platform to examine what Nigeria needs to do to ensure that the nation’s manufacturing sector is competitive under the African Continental Free Trade Area (AfCFTA) scheme. The AGM is scheduled to hold from October 17 – 19, 2023, with the theme, “Setting the Agenda for Competitive Manufacturing under the AFCFTA: What Nigeria needs to do”.
Speaking at a pre-AGM media briefing, in Lagos, on Wednesday, MAN President, Otunba Francis Meshioye, said that for Nigerian manufacturers to compete effectively there must be a concerted effort spearheaded by the government to tackle the binding constraints that limit local production, and aimed at attracting foreign investment.
“Currently, the cost of manufacturing is daily rising owing to scarce and unavailable manufacturing inputs that continue to shrink profitability and threaten the existence of the critical sector of the economy.
African commodity exchanges join forces under AfCFTA (The Business & Financial Times)
A total of 14 commodity exchanges on the continent have agreed to harness their collective potential under the African Continental Free Trade Area (AfCFTA), in what market watchers have described as one of AfCFTA’s biggest feats thus far.
High on the AfCFTA Association of Commodities Exchanges’ (ACX) agenda, the body is to work collectively on making the continent food-secure and promote market efficiency through sharing knowledge and best practices. ACX will encourage the adoption of modern trading practices including electronic trading platforms and standardised contracts, as well as enhance market information across the continent. This will enhance market efficiency, reduce transaction costs and attract greater participation from both domestic and international traders.
Opening Remarks at Press Briefing on the Regional Economic Outlook for Sub-Saharan Africa (IMF)
2023 has been a difficult year for the region’s economy, with growth slowing to 3.3 percent from 4 percent in 2022. But we are cautiously optimistic that there is light on the horizon. Growth is expected to rebound to 4 percent in 2024 and looks set to be broad based. Importantly, authorities in many countries are working hard to address macroeconomic imbalances. Fiscal deficits, for example, have been narrowing, helping stabilize public debt in most countries.
Still, it is too early to celebrate as many challenges lie ahead. The funding squeeze is not over, and while debt levels have stabilized, the cost of repayments has increased and high debt service ratios to revenue risk crowding out vital development spending.
The New Development Bank (NDB) and the Development Bank of Southern Africa (DBSA) are pleased to announce the signing of a USD 100 m loan agreement aimed at advancing sustainable infrastructure development in South Africa. This is a continuation of NDB’s strategic cooperation with DBSA, a leading development finance institution operating across Sub Sahara Africa and headquarted in South Africa. This is the second NDB loan to DBSA, following a successful implementation of the first loan of USD 300 m, which was earmarked for renewable energy.
Under the terms of the loan agreement, NDB will provide the USD 100 m loan to DBSA for a range of sustainable infrastructure development projects in South Africa, aimed at improving the country’s economic resilience, environmental sustainability and overall economic growth. The key features of the loan agreement include providing financing in South Africa towards: Clean and renewable energy Social infrastructure (including affordable housing, student accommodation and private health care) Digital infrastructure
Effective financial markets, key to sustainable development in Africa (UNECA)
Africa needs strong financial markets to unlock much needed capital to drive sustainable development on the continent, the acting Executive Secretary of the Economic Commission for Africa, Antonio Pedro, has urged.
Mr. Pedro, in an address at the launch of the Absa Africa Financial Markets Index 2023, highlighted that effective financial markets are key to Africa’s development prospects. He said Africa risked realizing the Sustainable Development Goals and the African Union Agenda 2063 owing to heightened financial and social challenges triggered by a combination of the COVID19 pandemic, growing inflation and geopolitical turbulence.
“Strengthening financial markets and diversifying the investor base would not only enable governments to mobilize more funding for economic recovery, sustainable development but also enhance financial resilience to future shocks,” said Mr. Pedro, adding that, “To foster the development of their financial markets, countries require a comprehensive approach, encompassing capacity building, robust infrastructure, essential reference tools, benchmarks and opportunities for peer learning.
DG Okonjo-Iweala calls for enhanced efforts to boost access to trade finance (WTO)
The Director-General outlined the key findings of recent joint WTO-IFC studies on the West African and Mekong regions. These studies have revealed significant trade finance difficulties faced by small traders and women-led businesses when seeking to participate in global trade. Rejection rates of over 40% and high costs for making requests discourage traders from seeking financial assistance from banks, she said. “Only up to 25% of trade is supported by trade finance in these regions, compared to 60-80% in advanced economies,” stated DG Okonjo-Iweala. However, according to calculations by WTO economists, “raising the trade coverage from 25% to 40% would increase annual trade flows by an average of 8%, reaching 80% in 10 years,” she added.
Partnerships and investment key to tackling today’s challenges, says UNCTAD deputy chief (UNCTAD)
UNCTAD Deputy Secretary-General Pedro Manuel Moreno speaks on 11 October at the opening ceremony of the 4th Qingdao Multinationals Summit in China. Partnerships are essential to addressing today’s global crises, driving sustainable progress and fostering shared prosperity, UNCTAD Deputy Secretary-General Pedro Manuel Moreno said on 11 October at the 4th Qingdao Multinationals Summit in China.
In a world marked by a pandemic, trade tensions, geopolitical challenges, rising food and energy prices, and mounting debt burdens, Mr. Moreno stressed the need for concerted efforts and coordinated action between governments, businesses and communities.
Stakes are high as heads of state, more than 50 government ministers, over 150 CEOs of leading companies and stock exchanges meet next week at the World Investment Forum 2023 in Abu Dhabi, United Arab Emirates (UAE), from 16 to 20 October. The forum is organized by the UN Conference on Trade and Development (UNCTAD). This edition takes place at a critical time, as developing countries face inadequate levels of investment in achieving the Sustainable Development Goals (SDGs), with an annual gap of more than $4 trillion, according to UNCTAD’s World Investment Report 2023.
UNCTAD Secretary-General Rebeca Grynspan said: “The forum is an opportunity to accelerate action and get more investments to flow into critical development sectors such as health care, food security and climate action. Without more investment, the delivery of the SDGs will be in jeopardy.”
This year’s edition will focus on the key investment challenges caused by today’s multiple global crises and revitalizing investment into food security, the transition to low-carbon energy, health systems, supply chain resilience and productive capacity growth in the poorest countries.
The world faces a global “polycrisis” affecting human and economic development at an unprecedented scale. Progress towards the Sustainable Development Goals (SDGs) has been painfully slow. For many countries, that progress has stalled or reversed, while the climate emergency is felt in intensifying force around the globe, hitting the most vulnerable the hardest. A much scaled up global effort is thus required to eradicate poverty, accelerate inclusive socioeconomic development, and tackle transboundary challenges.
At a time of increasing debt levels and strained government budgets, when more development finance is urgently needed, we, Heads of Multilateral Development Banks (MDBs), recognize the collective role we need to play in response to the global challenges and the efforts that will put us on track towards achieving the SDGs. To this end, we are committed to strengthen our collaboration and individual actions for greater impact.
We will also continue to explore ways to expand our lending capacity. We have identified Capital Adequacy Frameworks (CAF) measures, including those under implementation and consideration which, with strong contributions from shareholders and development partners, could potentially yield additional lending headroom in the order of USD 300-400 billion over the next decade. MDBs, working in collaboration with other development partners, can offer substantial leverage, deep knowledge and expertise, and an unparalleled proximity to governments and those most in need.
How Channeling SDRs is Supporting Vulnerable Economies
pdf Fourth G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting on 12-13 October 2023 culminates in Marrakech, Morocco (206 KB) (Press Information Bureau)
The G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the Indian Presidency was held during 12-13 October 2023 in Marrakech, Morocco, on the sidelines of the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG). Members discussed the priority of strengthening Multilateral Development Banks (MDBs) to address the global challenges of the 21st century and the report of the G20 Independent Expert Group (IEG).
Charting the way forward for logistics in Africa (TechCabal)
Solving the problem of logistics for the African market is critical. Africa is still heavily reliant on roads which accounts for 80% of the movement of goods and passengers, according to the African Development Bank. Of that 80%, only 15% is paved in Nigeria, per this Stears report. On another hand, investment in logistics startups on the continent is not as easy as it seems. Ciku Mugambi, CEO of Kobo360, a Nigerian logistics startup, admitted that operating a logistic business in Africa is not “sexy” compared to other tech sectors like fintech, for instance.
Mugambi said this during a panel session at TechCabal’s flagship conference, Moonshot, on Thursday, October 12. “We are literally just moving goods and people from one place to another and most people don’t find that to be very exciting. There is no doubt about how important logistics is. Nothing goes anywhere except we provide the means for that to happen,” Mugambi said.
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South Africa Wants to Hand Operation of Rail, Ports to Business After $27 Billion Loss (Bloomberg BNN0
The South African presidency has a plan to reverse the collapse of a state-run ports and freight-rail sector that’s cost the economy at least $26.7 billion since 2010: hand over most of the responsibility for fixing it to the private sector. The plan is encapsulated in a 124-page Roadmap for the Freight Logistics System in South Africa seen by Bloomberg. It sets out time-lines for everything from setting up an independent port and rail regulator, allowing private companies to access rail lines and offering rights to operate ports and rail routes to private companies.
The plan is the latest evidence that South Africa’s ruling African National Congress has been forced into backtracking on one of its core tenets — that state companies and investment will lead economic growth — and instead rely on the private sector to arrest the decline of services. Private companies are also investing in power and water provision that were once the near exclusive purview of the South African state.
The need for South Africa to take action to fix its broken logistics system is urgent.
Launch of BMA a step in the right direction in securing South Africa’s borders
EU announces new aid package to Ethiopia (The Journal Record)
The European Union has pledged assistance worth 650 million euros to Ethiopia, nearly three years after it cut direct aid to the East African country over atrocities committed in a bloody civil war. Jutta Urpilainen, the EU commissioner for international partnerships, announced the agreement during a press conference with Ethiopian Finance Minister Ahmed Side in the capital, Addis Ababa, on Oct. 3.
“It is time to gradually normalize relations and rebuild a mutually reinforcing partnership with your country,” said Urpilainen, describing the aid package as “the first concrete step” in this process after a cease-fire ended the war last November. The EU aid package was initially worth 1 billion euros ($1.04 billion) and was due to be given to Ethiopia from 2021 to 2027, but it was suspended in late 2020 after fighting broke out in the northern Tigray region. The U.S. also halted assistance and legislated for sanctions.
VP urges Africa to boost domestic market for cashews (Tanzania Daily News)
Dr Philip Mpango has called on African countries to boost local consumption of cashewnuts and their by-products and tap into the enormous continental market of almost 1.4 billion people, under the African Continental Free Trade Area (AfCFTA). Launching Tanzania International Cashew Conference in Dar es Salaam on Wednesday, Dr Mpango also tasked the Ministry of Agriculture to fast track investments in cashew processing factories.
“It is imperative for African countries to work on reducing cashews consumer prices, so as to promote regional market for the crop and its related products, said Dr Mpango at the conference organised by African Cashew Alliance in collaboration with the Ministry of Agriculture and the Cashewnut Board of Tanzania (CBT). The conference brought together farmers, processors, cooperatives, traders, regulators, consumers, financial institutions, development partners, policy makers and other stakeholders of the cashew value chain.
“Let us buy and consume cashewnut produced in our continent…But for this to happen, consumer prices must be affordable to the majority of our people,” Dr Mpango underlined.
Nigeria’s Oil Production Improved in September, Still Far from OPEC’s Quota (THISDAYLIVE)
Nigeria’s crude oil production improved in September, rising by a volume of roughly 165,429 Barrels Per Day (BPD) during the month under consideration. However, analysis of the data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday, showed that the country is still far from meeting its Organisation of Petroleum Exporting Countries (OPEC) quota despite the increase in output.
But while the current production allocation given to Nigeria by the international producers’ group is 1.74 million barrels per day, the information from the petroleum industry regulator showed that Nigeria was only able to drill 1.34 million bpd last month. It would be the country’s highest self-reported crude oil output since January 2022 when Nigeria managed to produce 1.39 million bpd. The lowest production for that year was just above 900,000 bpd.
IMF to Nigeria: Focus More on Policies to Safeguard Vulnerable Persons (THISDAYLIVE)
The International Monetary Fund (IMF) yesterday advised policymakers in Nigeria to focus on designing policies to safeguard vulnerable persons in the country. The Washington-based institution also emphasised the need for Nigeria to discontinue the practice of funding part of it’s national budget with financing from the Central Bank of Nigeria (CBN).
Also yesterday, the President of the World Bank Group, Ajay Banga, reaffirmed the bank’s commitment to promoting increased intra-Africa trade, highlighting its role as a catalyst for fostering inclusive growth across the African continent. The Washington-based institution also emphasised the need for Nigeria to discontinue the practice of funding part of it’s national budget with financing from the Central Bank of Nigeria (CBN).
African govts urged to leverage AfCFTA to tackle food insecurity (The New Times)
The faster implementation of the AfCFTA and supporting the agricultural value chain are two of the key recommendations of a meeting of more than 200 ministers, economists, and private sector players from Central and Eastern Africa, which was held from September 26-29 in Bujumbura, Burundi.
Known as the Intergovernmental Committee of Senior Officials and Experts (ICSOE), the meeting organised by the United Nations Economic Community for Africa (ECA), discussed ways to improve manufacturing and food security in Central and East Africa and how to position the two sub-regions as preferred investment destinations.
According to the meeting’s report seen by The New Times, the leaders also called for government support for smallholder farmers and strong measures to reduce food waste which stands at around 40 per cent of all harvest in African countries.
Nigeria Ratifies AU Convention On Cross Border Cooperation (News Agency of Nigeria)
Nigeria has deposited its instrument of ratification for the African Union (AU) Convention on cross-border cooperation. Mr Adamu Adaji, Director-General, National Boundary Commission made this known in a statement signed by the commission’s Head of Information Unit, Mrs Efe Ovuakporie in Abuja on Thursday. Adaji said that the instrument was deposited at the African Union Commission Headquarters in Addis Ababa, Ethiopia, adding that Nigeria had earlier signed the convention on Jan. 29, 2017.
“With this deposition, Nigeria has become the 9th country to have ratified and deposited the Niamey Convention at the African Union Commission Headquarters.
He explained that the convention, otherwise known as the Niamey Convention, has a strong commitment by member states towards the promotion of cross-border cooperation for sustainable development of the African continent.
African Ministers of Finance, Planning and Economic Development have called for key reforms of the Bretton Woods Institutions at the 2023 Annual Meetings of the World Bank Group and the International Monetary Fund. The call for reforms was made during a meeting of the Africa High-level Working Group on the Global Financial Architecture on the margins of the Annual Meetings in Marrakech, Morocco.
Amidst the polycrisis, Ministers underscored the urgency of increasing access to liquidity and bolstering the global financial safety net. Specifically, they stressed the importance of securing adequate loan and subsidy resources for the Poverty Reduction and Growth Trust (PRGT) to ensure a minimum lending capacity of at least SDR 3 billion per year from 2025.
Ministers welcomed the IMF Executive Board decision from March 2023 to temporarily raise annual access limits for the General Resource Account (GRA) to 200 percent of quota and the cumulative access limit to 600 percent of quota. They called for making these increased access limits permanent and for aligning the PRGT’s access limits with those of the GRA.
Ministers also highlighted a pressing need for further resource mobilization for the Resilience and Sustainability Trust (RST) to ensure that more countries can access IMF lending with extended maturities to build their long-term resilience.
“As the global community gathers in Marrakech, we need to stand together, united in the goal of protecting our future prosperity and ending extreme poverty. Prospects for global growth in the medium-term are at their lowest level in decades. The scarring effects of successive crises are increasingly apparent, just as many countries are struggling to overcome high inflation, high debt, and significant financing shortfalls to provide basic services, support infrastructure and climate action, and address rising poverty, inequality, and fragility.
“The world has become more shock-prone, with increased risks to growth, development, jobs, and living standards that widen inequalities within and across countries. Emerging market and developing economies have been especially hard hit. Income divergence with advanced economies has deepened further, and the world is not on a path to eliminate extreme poverty by 2030.
“Marrakech 2023 is a call for enhanced global collaborative action on common challenges, so we can build resilience and expand opportunities for a better future.”These 4 Marrakech Principles for Global Cooperation provide a broad framework to help harness the power of multilateralism to the benefit of all.
Development Committee: The Managing Director’s Written Statement October 2023 (IMF)
The global economy has shown resilience, but the recovery is slow and uneven. Risks have moderated in recent months but remain tilted to the downside. Headline inflation is about half of its 2022 peak but the decline in core inflation is more gradual. Growth momentum across most low-income and emerging market countries is weakening and achieving the 2030 Sustainable Development Goals (SDGs) is becoming increasingly challenging. While restoring price stability, normalizing fiscal policy, and protecting the vulnerable remain near-term policy priorities, policymakers should actively pursue policies that can support sustained growth—including macro-structural reforms and green transition. Multilateral cooperation is critical to address the challenges that hold back global recovery and shadow future prosperity, including risks associated with geoeconomic fragmentation.
The global economy has shown resilience: macroeconomic policies are delivering, inflation is steadily declining, and financial markets have stabilized. But the recovery is slow and uneven, medium-term growth prospects are weak, and there is a risk of further divergence across countries. The key policy priorities are to (1) safeguard macroeconomic stability and rebuild buffers while enhancing prosperity through growth-oriented and green reforms and (2) bolster international cooperation to strengthen the global financial safety net and debt architecture and to support ongoing fundamental transitions that transcend borders and require joint action. The IMF—as trusted advisor, provider of financial support, and platform for cooperation—remains committed to bringing countries together to solve global challenges.
OCP Group and World Bank Join Forces to Boost Food Security and Agricultural Development in West Africa (World Bank)
At the World Bank and IMF Annual Meetings in Marrakech, the OCP Chairman Mostafa Terrab and World Bank Vice President for Western and Central Africa Ousmane Diagana signed a Memorandum of Understanding (MoU) to foster cooperation and programs benefitting five million farmers in Benin, Guinea, Mali, and Togo, covering 10 million hectares. This cooperation aims at accelerating investments and reforms to make fertilizers more accessible and affordable to farmers. “These projects are an important step towards unlocking Africa’s potential in global food security,” said OCP Group’s Chairman and CEO, Mr. Mostafa Terrab. “The goal is to drive a just and sustainable agricultural transition, by widening the access of farmers in West Africa to customized fertilizers that nourish the soil and improve crop yields, which in turn enhances the livelihoods of farmers, thereby contributing to African development and prosperity.”
This is a critical partnership to help achieve the commitments made by the Ministries of Agriculture and Food Security of member countries of the Economic Community of West African States (ECOWAS) in the Lomé Declaration endorsed in May 2023.
SADC commits to strengthen measures associated with ensuring food safety (SADC)
The Southern African Development Community (SADC) is committed to fostering regional coordination and harmonisation of food standards and regulations to prevent foodborne diseases, reduce the risk of food contamination, and safeguard the integrity of food.
In his official opening remarks at the 14th SADC Food Safety Technical Committee Meeting being held from 10th to 12th October 2023, Lusaka Zambia, SADC Director for Industrial Development and Trade (IDT), Mr. Dhunraj Kassee said one in ten people in the world falls ill and 420,000 people die every year after eating contaminated food. 40% of children under five years of age carry the burden of foodborne diseases, with 125,000 deaths every year. “SADC Member States commit to cooperate in developing and implementing effective measures that respond to threats of food contamination to protect lives and livelihoods while at the same time reducing differences in these measures, which may result in barriers to trade” he said.
In 2019, the AU published a common Sanitary (human or animal life or health) and (plant life or health) Phytosanitary (SPS) Policy Framework for Africa which recognises the importance of reducing barriers to trade. The SPS Policy Framework aligns with the objectives of the African Continental Free Trade Agreement (AfCFTA) and recognises the economic potential of the agriculture and food sector particularly in the intra-African cross border trade. The AU Commission therefore perceives this Meeting as a critical entry point of initiating actions to improve cooperation with SADC structures related to food safety.
Extreme Poverty in Developing Countries Inextricably Linked to Global Food Insecurity Crisis, Senior Officials Tell Second Committee (United Nations)
An increase in extreme poverty in developing countries — for the first time in two decades — is inextricably linked to the global food insecurity crisis, senior United Nations officials warned the Second Committee (Economic and Financial) today, calling for urgent strategies to turn back the tide.
Benjamin Davis, Director of the Inclusive Rural Transformation and Gender Equality Division of the Food and Agriculture Organization (FAO), presented reports of the Secretary-General titled “Eradicating rural poverty to implement the 2030 Agenda for Sustainable Development” and “Agriculture development, food security and nutrition”. He noted that more than 80 per cent of the world’s extreme poor live in rural areas — at rates nearly three times higher than among urban residents. He called for the implementation of inclusive, environmentally sustainable strategies that put the eradication of rural poverty at the centre.
Turning to the report on agriculture development, food security and nutrition, he said that some 29.6 per cent of the global population — 2.4 billion people — were moderately or severely food-insecure in 2022, 391 million more than in 2019, with more women and people in rural areas denied access to safe, nutritious and sufficient food year-round. A long-term, holistic approach is needed to address structural problems such as political and economic shocks, unsustainable management of natural resources and socioeconomic exclusion.
AU embarks on mitigating shortage of animal feeds (New Vision)
The African Union-Inter African Bureau for Animal Resources (AU-IBAR) has joined efforts with the Bill and Melinda Gates Foundation to transform the animal feed sector into an industry. The efforts are folded under a new project dubbed: Evidence Driven Short Term Solutions to Build Resilience and Address the Adverse Effects of Crises on African Feed and Fodder Systems, commonly referred to as Resilient African Feed and Fodder Systems (RAFFS) project.
According to Agriculture Ministry Assistant Commissioner Animal Nutrition/Principal Rage Ecologist Denis Mulongo Maholo, the project is aimed at helping six African countries develop a conducive environment for transforming the animal feed sector into an industry. ”By an industry we mean, there could be a clear movement of goods from one point to another and in such an industry, we expect things like contract farming, contract supplies with enough feeds supplied to the consumers at the right time,” he said.
Under the project, Maholo said they expect and aspire to eliminate the seasonal animal feed shortages the countries have been experiencing which have led to most of the farmers especially the poultry farmers to collapse out of business.
“Because of the loopholes in the value chain, we have had some of our exports being banned, because we cannot meet the quality demands of the market where we are taking the commodities.
Immediate action is needed to get Africa on track with global goals (FAO)
The Director-General of the Food and Agriculture Organization of the United Nations (FAO), QU Dongyu, today called for immediate action to help Africa get back on track to meet global goals on food security and nutrition, pointing to science, technology and innovation, investments, and the continent’s reservoir of resourceful youth, as potential solutions.
Qu was invited to address the first Vatican Roundtable of African Farmers, an event designed to provided farmers from Sub-Saharan Africa with the opportunity “to bring their unique perspectives and concrete experiences to the forefront of global discussions on agricultural development in their region,” organizers said. The meeting took place just days before the opening of the World Food Forum, FAO’s flagship annual event.
Africa has been a strong focus of FAO’s efforts since its foundation, nearly 60 years. Unfortunately, the number of undernourished people there has risen to over 281 million since the outbreak of the COVID19 pandemic, while conflicts and the climate crisis continue to plague the continent.
Africa is not on track to meet the global goals on food security and nutrition set out in the 2030 Agenda, nor the goals of the Malabo Declaration agreed to by Members of the African Union.”In Africa, we critically and urgently need more efficient, more inclusive, more resilient and more sustainable agrifood systems to increase agricultural productivity to be 2 times higher than what it is now,” Qu said.
Food Systems must be rewired to halt escalating hunger and soften climate impacts, WFP says on World Food Day (UN World Food Programme)
To make more progress in the fight against hunger, the world needs to make at-risk communities less vulnerable to climate shocks and other emergencies, the UN World Food Programme said today. “If we want to break out of the never-ending cycle of crisis and response, we need to address the root causes of hunger by multi-year, long-term projects that shield communities from the impacts of the climate crisis,” said Volli Carucci, WFP’s Head of Resilience and Food Systems.
While the role of climate in driving up hunger is growing, solutions are available. Early-warning systems can help vulnerable communities prepare for weather shocks. Communities and local food systems can be protected by restoring water resources, digging irrigation canals and rebuilding natural barriers against climate extremes.
“We need to rewire food systems in the places where people are hungry, and regenerate the foundation of those systems: the land. We have to help small farmers bring food back to degraded land and create jobs within food systems. In the long run this will help reduce humanitarian needs and the number of costly emergency response operations needed,” Carucci said.
South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, advocated for the ongoing and collaborative development of Africa’s oil and gas resources during Africa Oil Week on Tuesday – a stance that is fully supported by the African Energy Chamber (AEC)
Minister Mantashe’s acknowledgment of Africa’s substantial oil, gas and mineral deposits aligns with the AEC’s mission to leverage these resources for the continent’s development and his sentiments will be further unpacked at African Energy Week (AEW) 2023 – scheduled for 16–20 in Cape Town – where the Minister will provide a keynote speech during the opening ceremony.
Mantashe emphasized Africa’s substantial oil and gas reserves, citing recent discoveries of oil in Namibia and the Ivory Coast, as well as gas discoveries in South Africa. These findings not only underscore the continent’s resource wealth but also the growing need for increased investment in refining capacity across Africa.
“We are convinced that the development of Africa’s oil and gas sector will be the game changer for Africa as it was the case for developed nations. Any further delay in this regard prolongs the acceleration of the continent’s energy security and undermines our concerted efforts aimed at eradicating energy poverty,” he noted.
Experts speak on energy transaction costs in Africa (Premium Times Nigeria)
Some experts in the energy sector in Africa have proffered solutions to worrying energy transaction costs across the continent. Energy transaction costs in Africa include all the costs involved in transacting energy, such as investment, financing, and legal costs, among others.
A World Energy Outlook Special Report titled Financing Clean Energy in Africa, unveiled in September by the International Energy Agency (IEA) in association with the African Development Bank Group (AfDB), highlighted that energy investment on the continent has fallen short, accounting for a mere 3 per cent of the global total, even though Africa is home to one-fifth of the world’s population.
Climate change: Civil society orgs demand cancellation of debts from developed countries, IFIs (The Business Standard)
A group of country’s civil society organisations has called on the developed countries, particularly those in the Global North, and the international financial institutions (IFIs) to cancel all the debts of Bangladesh that are related to climate financing. The group, led by EquityBD, also demanded compensation and grant-based financing instead of loan on Thursday (12 October), reads a press statement.
Speaking at a human chain on Thursday, the civil society organisations criticised the World Bank, the Asian Development Bank and the Japan International Cooperation Agency for their role in making the Least Developed Countries (LDCs) and Climate Vulnerable Countries (CVCs) indebted in the name of climate finance.
Quick links
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China replaces African loans with energy investments amid faltering economy
Reshaping the shift to clean energy in Africa using natural gas
New treaty to protect the world’s oceans may hurt vulnerable African fisheries
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Bleak outlook for third-quarter economic growth in South Africa (Engineering News)
September reflected another month of weakened economic activity in South Africa, indicating bleak prospects for the economy’s growth in the third quarter, automated clearing house BankservAfrica’s Economic Transactions Index (BETI) data shows.
On a quarterly basis, the BETI is 2% lower, confirming that the economy lost momentum in the third quarter. This is substantiated by the data showing that the BETI has declined for the past three consecutive months. “As a valuable early indicator of economic activity, the BETI data reflects the ongoing ‘muddle-along’ narrative playing out in the South African economy,” explains independent economist Elize Kruger.
The South African economy continues to face many challenges of ongoing loadshedding, water supply issues and a logistics sector burdened by a steep deterioration in rail services and ongoing port inefficiencies, among others.
South Africa egg shortage: How poultry products became a hot commodity (BBC)
The country has been grappling with one of its worst outbreaks of bird flu - millions of chickens have been killed over the past few weeks, supplies of poultry meat have been threatened and supermarkets across the nation have run out of eggs.
Experts predict the egg shortage will cause the popular ingredient to jump in price - far from ideal considering it is one of the most affordable sources of protein for the millions living in poverty.
Retailers, farms and industry giants have also been hit, with the nation’s largest chicken producer stating the flu had “ravaged” a sector already burdened by rising costs and an electricity crisis.
In an effort to stop the spread of Highly Pathogenic Avian Influenza - a deadly, extremely infectious type of bird flu - farmers have culled more than seven million egg-laying chickens. That amounts to 20-30% of the country’s entire chicken stock, according to South African Poultry Association.
We’re working on cassava value chain revitalisation (Tribune Online)
The Minister Agriculture and Food Security, Senator Abubakar Kyari, on Tuesday, expressed hope over the maiden Africa Cassava Conference to boost productivity along the value chain towards achieving food security.
The Minister, who was represented by the Director, Federal Department of Agriculture, Engr Abubakar Garba, stated this in a keynote address during a press conference held ahead of the maiden African Cassava Conference holding from October 18-20, 2023 in Abuja, with the theme ‘Stimulating Africa’s Industrialization through Development of Cassava Based-Products and Assuring Quality Along the Cassava Value Chain’.
Kyari said the Ministry through the Cassava Value Chain is continuously working earnestly towards continuous promotion and development of cassava and its derivatives. He however expressed hope that the conference would highlight how stakeholders can work to develop a robust, commercially driven and economically viable cassava sector that will not only contribute to food and nutrition security but also increasingly contribute to growth of the commodity in Nigeria and Africa as a continent. Furthermore, the Minister assured the Ministry’s continued support to promote boundless opportunities that exist in the cassava sub-sector for all stakeholders.
Trade and Investment Opportunities to Come Under the Spotlight at the Namibia-South Africa Business Forum and Exhibition (The Department of Trade, Industry and Competition)
The Business Forum and Exhibition will focus on strategic priority sectors agreed to by both countries, namely: agriculture and agro-processing, automotive, clothing and textile, and green hydrogen, including exploring opportunities to strengthen cross-border value chains along with the integration of the requisite infrastructure and logistics supply chains.
Namibia and South Africa’s business executives will be exploring opportunities to increase trade and investment flows between the two countries at the Namibia-South African Business Forum and Exhibition, which will be held at the Windhoek Country Club on Friday, 13 October 2023.
The Forum is held under the theme: Forging a New Era of Mutually Beneficial and Reciprocal Trade and Investment Relations. The event is hosted by Namibia’s Ministry of Industrialisation and Trade, on the margins of the 3rd Session of the Namibia-South Africa Bi-National Commission (BNC) which is co-chaired by the His Excellency, Dr. Hage G. Geingob, President of the Republic of Namibia and H.E. Mr. Cyril Ramaphosa, President of the Republic of South Africa.
AfCFTA offers opportunities for chemicals and cosmetics sector (Freight News)
The chemicals, cosmetics, plastics and pharmaceutical sectors are set to get acquainted with the benefits offered under the African Continental Free Trade Area (AfCFTA). This will occur during a virtual workshop on the implementation of the AfCFTA hosted by the Department of Trade, Industry and Competition (the dtic) on Wednesday, October 11.
The dtic has already embarked on provincial awareness workshops, which provided a platform for information sharing with the private sector on the benefits offered under the agreement. The workshops were also used to identify South African companies in various provinces, in the targeted sector master plans and other priority sectors that have the capacity to export to the rest of the continent. More workshops focusing on different sectors are being organised.
U.S., EU to support African railway development to counter China (Nikkei Asia)
West eyes mineral-rich corridor in Angola, DRC, Zambia as Belt and Road slows
The United States and the European Union will offer assistance on the construction of an international railway in Africa to bring resources from mining areas to a port in a test of whether they can gain a foothold in Africa, where China has gained influence through its Belt and Road Initiative. It is also intended to strengthen supply chains for critical minerals, reducing the donors’ dependence on China.
“This is a game-changing regional investment,” U.S. President Joe Biden said on Sept. 9, when he announced the U.S. would support the development of the Lobito Corridor in partnership with the EU. The corridor aims to strengthen a distribution network that connects Angola’s port of Lobito on the Atlantic coast to Zambia and the Democratic Republic of the Congo, inland countries that are rich in mineral resources.
Africa’s total exports expected to hit close to USD1 trillion by 2035, Standard Chartered report reveals (Standard Chartered)
Rising regional trade levels and greater connectivity will unlock high‑growth corridors across Africa and beyond. Intra-Africa trade is expected to reach USD140bn by 2035, equating to 15 per cent of Africa’s total exports. Africa’s corridors with some of the world’s most dynamic regions will grow faster than the global average of 4.3 per cent. The East Africa-South Asia corridor is expected to emerge as the fastest-growing major corridor, at 7.1 per cent per annum through to 2035. The Middle East-North Africa and the Middle East-East Africa corridors will also be substantial, with their combined trade volume expected to reach almost USD200 billion by 2035.
Standard Chartered has today published its Future of Trade: Africa report, highlighting the outlook for African trade and providing a view of the African Continental Free Trade Area (AfCFTA) as a key proponent of optimising intra-African trade. The report finds that Africa’s total exports will reach USD952 billion by 2035 and the AfCFTA, once fully implemented, has the potential to increase this figure by a further 29 per cent. This represents an annual growth rate of 3 per cent from now until 2035.
Dr José Viñals, Group Chairman of Standard Chartered PLC, said: “Implemented effectively, the African Continental Free Trade Area can radically reshape future growth and development. It will enable higher value-add supply chains and more diversified exports, allowing member states to reduce historical commodity dependence and achieve meaningful progress towards multiple Sustainable Development Goals. Through our global footprint, local expertise and innovative solutions, we are committed to supporting the development of the right policies, securing cooperation, and applying technology and capital in order to build better connections within the continent, and beyond.”
Africa Trade Barometer by Stanbic IBTC Holdings Plc: Nigeria Rises To 4th In Africa’s Trade Rankings
Africa should leverage the AfCFTA to promote green transition (UNECA)
Africa, rich in mineral resources, must leverage the African Continental Free Trade Area (AfCFTA) to accelerate green transition to boost sustainable development and environmental protection. Speaking at a three-day peer review meeting for research papers on Green Considerations of the AfCFTA in Addis Ababa, ECA Director for Regional Integration and Trade Division, Stephen Karingi underscored the importance of green transition for Africa.
“Africa needs to use every instrument at its disposal to move towards green transition, this will be for the region’s own resilience and future competitive advantage as we have already seen from the example of the European Union Carbon Border Adjustment mechanism that African businesses competitiveness in foreign markets will be heavily tested,” said Mr. Karingi, emphasizing that Africa needs to create a policy and regulatory environment that promotes green growth, including green industrialization and environmental protection.
Climate change poses a significant threat to African countries’ economic, social, and environmental sustainability. Investing in green sectors and promoting sustainable investment practices is critical for African countries in mitigating the impacts of climate change and transitioning to a low-carbon economy. The ECA notes that the AfCFTA Protocol on Investment presents a unique opportunity for African countries to attract and promote investments in green sectors that support green transition.
Part of Africa’s Intra-Trade Challenges Include Inadequate Payment and Supply Chain Infrastructures
ECOWAS launch the West African committee for fertilizer control (World Fertiliser)
Over the years, issues related to fertilizer quality, access, and use have been a major challenge that limits the West Africa region’s potential to produce enough food to feed its populations and address food security and nutrition challenges. In light of this, the 2006 Abuja Declaration recommended efforts to increase Africa’s fertilizer use from 8 kg/ha to at least 50 kg/ha.
The economic community of West African states (ECOWAS), in cooperation with the West African economic and monetary community (UEMOA) and the permanent interstate committee for drought control in the Sahel (CILSS), has officially launched the West African committee for fertilizer control to support the joint implementation of the region’s harmonised regulation C/REG.13/12/12, relating to fertilizer quality control. The effort will contribute to the development of the fertilizer sector in ECOWAS member states and promote agricultural production and productivity across the region.
IFDC has been providing support to ECOWAS, UEMOA, and CILSS, as well as their member states, on fertilizer-related issues. This effort began in 1995, when IFDC conducted a study that revealed various challenges facing the fertilizer sector, including quality issues.
Plans to establish a Customs Automation Regional Support Centre (COMESA)
COMESA Secretariat is preparing to establish a Customs Automation Regional Support Centre at its Headquarters, in Lusaka, Zambia. This initiative is being undertaken in cooperation with UNCTAD through a co-delegation agreement.
“The implementation of the key activities for realizing the COMESA Customs Union is lagging and the main issues to be addressed are alignment of national tariffs to the COMESA Customs Tariff Nomenclature and Common External Tariff – issues that are within your areas of jurisdiction together with other stakeholders,” COMESA Director of Trade and Customs Dr Christopher Onyango told the customs experts.
The Secretariat is also collaborating with the World Customs Organisation (WCO) to enhance the capacities of Customs officials in technical subjects, specifically, the Harmonised System (HS) and Rules of Origin. This is being done within the framework of the EU-WCO HS and Rules of Origin Africa Programmes, respectively. The aim is to develop a critical mass of regional experts to charge and control of the expanding roles and demands for customs services.
Africa can and should harness its hydrogen potential for development (Engineering News)
Harnessing the potential for renewable energy and green hydrogen production, or replacing carbon atoms with hydrogen atoms in the energy value chain, can build peace and stability in Africa, petroleum company Conex Liberia MD Amitahb Prasad has said.
“By 2035, Africa can produce 50-million tons of competitively priced green hydrogen. The expected global demand for green hydrogen is 607-million tons by 2050. In comparison, Africa’s demand for green hydrogen and its derivatives is expected to reach 10-million to 18-million tons a year by 2050, but with a production potential much above that.
“Africa can export, after meeting internal demand, between 20-million and 40-million tons a year of green hydrogen by 2050. It can therefore consume its own production of green hydrogen and have sufficient surplus to export,” Prasad emphasised during a presentation at the Hydrogen Africa conference, held in Johannesburg, in late September.
Members discuss improvements to service exports data in LDCs, COVID-19, WTO reform (WTO)
WTO members explored the impact of COVID-19 on trade in health services and improvements in service exports data in least-developed countries (LDCs) at two events on 4 and 5 October organized under the Council for Trade in Services. At a Council meeting on 3 October, they discussed implementation issues from the 12th Ministerial Conference (MC12), including the LDC Services Waiver and e-commerce, and ways of improving the functioning of services bodies in the WTO. In the Council meeting, members also continued reviewing exemptions to the WTO’s most-favoured nation principle and considered various concerns raised by members regarding the impact of certain measures, such as cybersecurity measures, on services trade.
Commodity-Dependent States Underperforming in Development, Expert Warns at Joint Meeting of Second Committee, Economic and Social Council (United Nations)
Despite many commodity-dependent countries underperforming in development and falling further into debt, the global economy lacks an adequate response to the crisis, a Nobel Laureate told the Second Committee (Economic and Financial) and the Economic and Social Council as they met today for their annual joint meeting.
Joseph Stiglitz, Professor at Columbia University, Nobel Laureate and Co-Chair of the Independent Commission for the Reform of International Corporate Taxation, cited the “natural resource curse”, noting that developing countries and emerging markets do not get compensated adequately for their natural resources, while companies tend to use their market power to avoid paying for the extraction-related environmental damage, he said.
Arlene Beth Tickner (Colombia) highlighted the two components of reindustrialization in her country, namely the move from an extractive economy to a decarbonized, productive and sustainable knowledge economy, coupled with a holistic, comprehensive agrarian reform aimed at food sovereignty.
In the second panel discussion, on the theme “Leveraging commodities for sustainable economic development — expert panel perspective”, Mohammed Belal, Managing Director for the Common Fund for Commodities, stated that the free market system is not working for all and cited an example of Côte d’Ivoire which produces 45 per cent of the world’s cocoa, but receives only 4 per cent from the $100 billion chocolate industry, while millions of its farmers survive on 78 cents per day.
In line with this, Miho Shirotori, Director of the United Nations Conference on Trade and Development’s (UNCTAD) Division on International Trade and Commodities, stressed that structural transformation strategies for commodity-dependent developing countries need to incorporate new dimensions and new parameters, arising from the decarbonization imperatives and avoiding the commodity trap with critical minerals.
Related: UNCTAD sets out pathways to ease commodity dependence for greener, inclusive growth
Aid-for-Trade monitoring and evaluation exercise gets under way (WTO)
The Aid-for-Trade monitoring and evaluation exercise was launched by WTO members at a meeting of the Committee on Trade and Development on 9 October. The aim of the exercise is to shed light on the trade and development priorities of developing economies and to examine how development finance provided by partners is addressing these needs. The feedback will lay the groundwork for the next Global Review of Aid for Trade, scheduled for June 2024.
Deputy Director-General Xiangchen Zhang emphasized the significance of this exercise. He said: “The Aid-for-Trade monitoring and evaluation exercise is a critical step to understand the trade and development priorities of developing economies and LDCs, donors, South-South partners, and regional economic communities. The evaluation underscores the WTO’s commitment to making trade more inclusive.”
Every bit helps: How policies, governance and institutions can help us spend better for climate and development (World Bank Blog)
The potential for countries to spend better is enormous. By recent estimates, a World Bank report Detox Development finds that countries spend more than $1.2 trillion on subsidies toward energy, water, and agriculture. These are inefficient at best, and often significantly counterproductive.
To achieve resilient and decarbonized development, countries will need major structural and policy change, and investments. By our own estimates, extrapolated from our published Country Climate and Development Reports (CCDRs), low- and middle-income countries (without China) will need to invest around $783 billion between now and 2030, and that’s only part of what’s needed for broader development objectives. Other estimates to achieve the SDGs are even higher. Obviously a very tall order.
But the focus on the need for countries to spend more on their development should not obfuscate another key requisite for success: countries can and need to spend better.
Energy subsidies should help poor people access modern energy. So it should follow that by simply removing them, this would hurt poor people. But because rich people spend much more on energy than do poorer people, they get the lion’s share of these benefits. Moreover, artificially low energy prices discourage all efforts to prevent waste and improve energy efficiency.
So what should governments do? Instead of trying to boost competitiveness and increase energy access through artificially low energy prices, governments can use better tools.
From climate science to global action: Who contributes most to global greenhouse gas emissions?
Introductory Remarks to the Fiscal Monitor Press Conference (IMF)
Global debt has risen persistently over the last 75 years. The mountain range got its tallest and steepest peak, in 2020, the year of the pandemic, at 258 percent of GDP. In the following two years, a strong rebound in economic activity, accompanied by an unexpected inflation surge, pushed debt lower by 20 percentage points of GDP. This brought debts about 2/3 of the way back to pre-pandemic levels. In 2022, total debt liabilities of governments, non-financial corporations and households stood at $235 trillion (238 percent of GDP).
For all countries it is becoming more challenging to balance the fiscal equation. First, debts are generally elevated and borrowing costs are rising. Given that effective interest rates on public debt lag market rates, the effect will likely be very persistent. Second, public expectations about the role of the budget have expanded over time, in part from the experience during COVID 19. Priority policy goals include the eradication of poverty and hunger, climate change, digitalization and artificial intelligence, competitiveness, and growth and much else. Third, there is a widespread aversion to taxation. So much so that it is not a great exaggeration to speak about political red lines on taxation.
Although debt vulnerabilities and risks remain elevated and fiscal restraint a much needed ingredient in the policy mix in many corners, IMF’s assessment is that the risk of a “systemic” wave of sovereign debt defaults remains low.
Quick links
Climate Crossroads Fiscal Policies in a Warming World
Pandor calls for urgent action to protect oceans, livelihoods
Reimagining Africa’s role in revitalizing the global economy
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Deputy President Paul Mashatile: Africa Oil Week (South African Government)
The theme for the 2023 Africa Oil Week, “Maximising Africa’s Natural Resources in the Global Energy Transition”, speaks volumes, considering that the globe, especially the global south, is confronted by the energy availability factor, which impacts the growth trajectory of our nations. Indeed, as a continent, we must champion the cause to maximise Africa’s natural resources during this global energy transition.
As a natural resource-rich continent, Africa, through its resources, has significantly contributed to the expansion of many developed economies worldwide. It is indeed a paradox that while the continent boasts a wealth of resources, it is still largely confronted by high levels of poverty and underdevelopment.
The profitability of mineral resources has provided nations with the capacity to maintain industrial activities, as well as ensuring that there is energy security. In the world that we live in today, mineral resources are the currency that drives economic growth, it is therefore essential that any conversation about the sector must be anchored in the perspectives of African nations for their benefit.
South Africa’s gas master plan ready, official says (Engineering News)
South Africa’s master plan to develop its gas market is finally ready after repeated delays as it aims to reduce its carbon emissions and avoid chronic power outages that have plagued Africa’s most developed economy for years. The master plan will go to the cabinet before public release, a senior official at the department of mineral resources and energy (DMRE) said on Tuesday.
“It is done, it is going through the internal processes to go to cabinet for public comment”, Jacob Mbele, the chief director at the DMRE told journalists. South Africa wants to diversify its energy mix away from ageing coal-fired power plants prone to breakdowns and help reduce harmful emissions from the continent’s top polluter. The country estimates it has gas resources of around 60-trillion cubic feet (tcf) offshore and a further 200 tcf onshore.
The failure to come up with a master plan, first raised almost a decade ago, has added to regulatory uncertainty in South Africa, where French energy company TotalEnergies was looking to develop two large offshore gas finds. Another DMRE official said last month the new gas master plan was designed to balance the demand and supply of natural gas until 2050, modelled on data gleaned and verified by the industry.
West Africa records growth despite coups and underperformance of its largest economies (Business Insider Africa)
The World Bank relayed the aforementioned information in its Africa’s Pulse bi-annual report. The global lender identified how Africa is doing based on regional performance, which supports its evaluation. The report shows that while the Economic and Monetary Community of Central Africa (CEMAC) and the largest economies in Africa such as Nigeria and South Africa have underperformed, regions like the East African Community and the West African Economic and Monetary Union (WAEMU) are performing better than the regional average in 2023.
The presence of large areas of high development and small areas of low growth that are correlated with economic and political stability (or lack thereof) serves as confirmation of the significant diversity in growth between countries in the region.
More than three-quarters of the GDP of Sub-Saharan Africa is generated by the ten largest economies, seven of which are expanding at rates that are below their long-term average growth. Sudan, Ghana, and Angola are three of the nations that will do worse in 2023 than they did from 2001-2019 in terms of growth rates. Nevertheless, development is anticipated to pick up for the majority of nations as the projected annual average growth rate for 2024-25 is greater than that of 2023 for 39 of the region’s 47 countries.
COMESA-EAC-SADC meets to align, update Rules of Origin (COMESA)
A three-day workshop to update the Rules of Origin for the Tripartite Free Trade Area and align them with the latest Harmonized System (HS) 2022 version, begun Monday 09 October 2023 at COMESA Secretariat in Lusaka, Zambia. The alignment will help avoid misapplication of the Rules of Origin and facilitate origin determination, thereby ensuring efficient and effective collection of revenue.
Rules of Origin serve as critical instruments in advancing the three development pillars of the Tripartite, which include Market Integration, Infrastructure Development, and Industrial Development. The Harmonized System, maintained by the World Customs Organization (WTO), undergoes updates approximately every five years. These updates are essential to accommodate new products, address global environmental and social concerns, and recognize emerging trade patterns, among other factors. Consequently, it becomes necessary to ensure that the Rules of Origin for various trade agreements, which are based on the HS, are also updated to reflect the latest HS version.
At the opening of the workshop, Assistant Secretary General in charge of programmes in COMESA, Dr. Mohamed Kadah called for simplified, transparent and predictable rules of origin for easy trade flow, especially amongst the small-scale traders. “In preparation for the implementation of the TFTA, it is necessary to ensure that the Rules of Origin are aligned to the latest version of the Harmonized System which is in use by most the Partner/Member States,” he said in a statement presented by Director of Trade and Customs, Dr Christopher Onyango.
Over 40% of grains contain unacceptable levels of aflatoxin contamination (The Business & Financial Times)
As high as 40 percent of grains sold in the markets are said to contain unacceptable levels of aflatoxin contamination, posing serious health implications for consumers. Aflatoxin contamination of above 20 percent concentration in grains is considered too high, but grains on the local market are said to contain double this percentage or more.
Aflatoxins are naturally-occurring compounds that are produced from the moulds Aspergillus flavus and Aspergillus parasiticus, and are known to be potent human carcinogens. The high levels of contamination not only pose a threat to human health but also affect farmers and grain dealers greatly, as most companies and manufacturers which use grains as raw materials prefer imported ones.
To mitigate this situation, the African Development Bank (AfDB) in partnership with Ghana Commodity Exchange (GCX), Ghana Standards Authority, Ministry of Food and Agriculture and Department of Agriculture-University of Ghana, with financial support from Korea Africa Economic Cooperation Fund (KOAFEC), has launched a national programme to educate and sensitise stakeholders in the agriculture value chain on aflatoxins.
Advancing Vaccine Manufacturing: African nations need to collaborate to boost pharmaceutical production (The Independent Uganda)
Civil society organizations, government representatives, and the private sector convened at a high-level policy symposium in Kampala on September 27-28 to address the critical issue of pharmaceutical production and access in Africa. The symposium aimed to explore ways to increase local production, reduce dependence on imports, and improve access to drugs and vaccines.
“Africa’s reliance on imports extends to vaccines, with the continent consuming 1.3 billion vaccines annually, representing 25% of global demand,” he said. “Shockingly, only 1% of these vaccines are manufactured locally, emphasizing Africa’s dependence on foreign sources for 99% of its vaccine needs.” So, how can this trend be reversed? Rangarirai Machemdze, the coordinator of SEATINI Southern Africa, proposes leveraging the African Continental Free Trade Area (AfCFTA) to address this challenge.
UN Development agencies launch the Africa Knowledge Management Hub to enhance SDGs action in Africa (UNECA)
As the world reaches midway to achieving the Sustainable Development Goals (SDGs), there is a growing sense of urgency around the need to accelerate necessary transformations to deliver a healthy planet. In Africa, the United Nations Development System Agencies are contributing to accelerating transformations to the SDGs by, inter alia, providing access to relevant information to ensure Africans enjoy clean energy, air and water, walkable cities, flourishing landscapes, nutritious food, and a stable climate.
Dubbed the Africa Knowledge Management Hub (AKMH), the online ecosystem provides federated access to a variety of knowledge to help African governments in their quest to get the right transition for people, nature and climate, reduce inequalities, and spur economic growth to achieve the SDGs and Agenda 2063 that is Africa’s blueprint and master plan for transforming the continent into a global powerhouse of the future.
Resilient Global Economy Still Limping Along, With Growing Divergences (IMF)
Global recovery remains slow, with growing regional divergences and little margin for policy error, the IMF says. The global recovery from the COVID-19 pandemic and Russia’s invasion of Ukraine remains slow and uneven. Despite economic resilience earlier this year, with a reopening rebound and progress in reducing inflation from last year’s peaks, it is too soon to take comfort. Global growth is forecast to slow from 3.5 percent in 2022 to 3.0 percent in 2023 and 2.9 percent in 2024. The projections remain below the historical (2000–19) average of 3.8 percent. Central banks need to restore price stability while using policy tools to relieve potential financial stress when needed.
Three forces are at play: The recovery in services is almost complete and the strong demand that supported services-oriented economies is now softening. Tighter credit conditions are weighing on housing markets, investment, and activity, more so in countries with a higher share of adjustable-rate mortgages or where households are less willing, or able, to dip into their savings. Firm bankruptcies are increasing in some economies, although from historically low levels. Countries are now at different points in their hiking cycle: advanced economies (except Japan) are near the peak, while some emerging market economies that started hiking earlier, such as Brazil and Chile, have already started easing. Inflation and economic activity are shaped by last year’s commodity price shock.
World Investment Forum: Facilitation critical for sustainable development (UNCTAD)
Proactive investment facilitation is key to attracting funding in vital areas such as renewables, health and infrastructure for developing countries. UNCTAD’s World Investment Report 2023 shows that developing countries need renewable energy investments of about $1.7 trillion annually but they attracted only $544 billion in 2022. The world urgently needs a surge in financing for sustainable development.
At the halfway mark between the adoption of the UN Sustainable Development Goals (SDGs) in 2015 and their 2030 finish line, developing countries currently face a gaping SDG-investment gap of approximately $4 trillion annually. To get the SDGs back on track, increasing the quantity of investment is not enough. There’s also the quality – the extent to which investment delivers concrete sustainable development benefits. Worldwide, investment facilitation policies are advancing through international, regional and bilateral initiatives. When geared towards sustainable investment, such policies can support countries to unlock much-needed capital for the SDGs.
And this is one of the key topics UNCTAD’s upcoming 8th World Investment Forum will tackle, bringing key stakeholders including government ministers, international organizations, as well as CEOs of leading companies and stock exchanges. The forum is set for 16 to 20 October in Abu Dhabi.
UN calls for closing internet connectivity and digital governance gap (UN News)
Against a backdrop of growing geopolitical tensions, proliferating crises and widening inequalities, the challenges facing the global community in reaching the 2030 Agenda for Sustainable Development are vast, the UN said on Monday. With the Internet holding a critical role in navigating these complexities, the 18th annual Internet Governance Forum hosted by the Government of Japan is under the overarching theme, “The Internet We Want – Empowering All People.”
Considering the rapid tech advances, including in Artificial Intelligence (AI), risking exacerbating existing inequalities, the Forum focuses on how we leverage the benefits of digital technologies, while mitigating the risks. While technology is moving at warp speed in a select group of countries, the reality is that 2.6 billion people are still offline, mostly in the Global South and vulnerable communities.
Quick links
Adopt digital technologies to remain relevant, Dr Mwinyi tells public broadcasters
More green industrial policy support needed in commodity-dependent countries
A governance hack aligns Aid for Trade support to country priorities
Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development
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tralac Daily News
New Border Management Authority a boost for SA’s security and development (SAnews)
President Cyril Ramaphosa has used his weekly newsletter to the nation to highlight the importance of the New Border Management Authority (BMA) in boosting the country’s security and development. The President said that the establishment of the BMA is a significant step towards safer communities, better law enforcement and the growth of the economy through greater trade with the country’s neighbours. President Ramaphosa emphasised that ensuring the borders are well-managed and well-protected is key to the security and development of the country.
“Maintaining the integrity of our country’s borders is key if we are to realise the aspiration of every South African to live in peace and harmony with ourselves and our neighbours. “It is a daunting undertaking. Our land border is over 4 800 km long and is shared with six countries. We have 53 land ports of entry, 11 international airports and eight sea ports. “The launch last week of the country’s first integrated, unified Border Management Authority (BMA) is therefore a milestone in the necessary effort to secure our borders,” the President said.
Two new substations and transmission lines set to advance regional energy infrastructure (Namibia Economist)
Last week, two new 400 kV substations and a 190km interconnector overhead transmission line were inaugurated in Omusati. The project, valued at N$1 billion, began in June 2021 during the tough COVID-19 period. The aim was to strengthen the backbone of northern Namibia while also connecting Angola and Namibia.
Speaking in a keynote address, the Minister of Mines and Energy, Tom Alweendo said the event is not merely inaugurating substations and transmission lines; as it is “inaugurating a brighter future for Namibia and by extension for Southern Angola.” According to Alweendo, these substations and transmission lines are like vital highways that will bring electricity to every part of the country as well as open potential for regional integration.
“As we expand our network, we open doors to greater trade opportunities, collaboration, and growth with Angola. These infrastructures certainly allow for future trade to be strengthened between our two countries,” he said, adding that the Kunene Substation will serve as the connection point between Namibia and Angola.
Namibia pays for others’ gas emissions (New Era)
Despite Namibia’s minimal contribution to global greenhouse gas emissions in 2021 at a mere 0.03%, a combination of physical and societal characteristics makes the nation extremely vulnerable to the negative effects of global climate change.
As one of the biggest and driest countries in sub-Saharan Africa, Namibia experiences a wide variety of weather patterns ranging from frequent droughts to flash floods, irregular rainfall and extreme temperature changes. All these instances contribute to overall water scarcity.
“The country’s reliance on its endowment of natural resources including land, minerals and biodiversity, its high income inequality and poverty, and its high exposure to external shocks, increases its vulnerability to climate change.
Mauritius to foster a conducive investment climate for Africa, says Minister Seeruttun (Republic of Mauritius)
‘Mauritius will continue to fulfill its promise of delivering on the “Africa We Want” in line with the vision of the African Union Commission’s 2063 Agenda and work towards a common objective of creating a sustainable and inclusive environment to attract investment for Africa’s growth’.
This statement was made by the Minister of Financial Services and Good Governance, Mr Mahen Kumar Seeruttun, this morning, on day two of the Africa Partnership Conference (APC) being held at the Intercontinental Hotel in Balaclava.
In his address, the Minister highlighted that the two-day conference serves an opportune platform to cement the bond among APC countries in the pursuit to unify the continent and foster a conducive investment climate. “Government is taking purposeful strides in advancing the Mauritius for Africa Agenda and raise the country’s standing as an important economic hotspot for Africa,” he said.
Mauritius hosts Africa Partnership Conference to catalyse cross-border alliance
Ethiopia Mulls Policy Shift To Allow Foreign Exporters Imports Access (The Reporter Ethiopia)
Ethiopia is considering allowing foreign exporters established in the country to utilize export revenues for imports, a move requested particularly by meat exporters to offset losses from exporting business, incurred by high domestic inflation. In a major policy shift, the government is aiming to reverse a long time ban on foreign businesses importing goods into the country.
If approved, the move would enable foreign companies established in Ethiopia to utilize forex retention brought in through exports to import items while also contributing to the government’s efforts to address supply constraints and inflation issues facing the country.
“In our three-year medium-term plan, the government prioritized improving supply and properly addressing inflation. Allowing foreign companies in Ethiopia to engage in importing is one potential tool,” he told The Reporter.
Morocco’s Quest for Stronger and Inclusive Growth (IMF)
Throughout the past two decades, Morocco has faced several external and domestic shocks, including large swings in international oil prices, regional geopolitical tensions, severe droughts, and most recently the impact of the pandemic and the economic fallout from Russia’s invasion of Ukraine. Despite rough waters, the government stayed the course and remained focused not only on immediate stability, but also on the long-term needs of the Moroccan economy. This involved the adoption of a series of difficult measures, like the elimination of energy subsidies, and a strategy aimed at improving the country’s infrastructure, diversifying the production and export bases by attracting foreign investment, and modernizing the governance structure of the public administration. The road to higher and more inclusive growth, however, remains steep.
Despite gains in poverty reduction, literacy and lifespans, Morocco economy continues to face a high share of inactive youth, large gaps in economic opportunities for women, a fragmented social protection system, and remaining barriers to private sector development. An ambitious reform agenda is needed to better meet the aspirations of Moroccans, by making economic growth stronger, more resilient and more inclusive, particularly to provide greater opportunities for young, women, and entrepreneurs. Morocco appears well positioned to address these challenges, and indeed, the country has recently sought to define and pursue a new “model of development”, through national debates and a more inclusive approach to reforms.
The Republic of Congo can turn the climate crisis into an opportunity to end poverty and boost shared prosperity (World Bank)
New report highlights that the Republic of Congo could reduce poverty in rural areas by 40% and in urban areas by 20% by 2050 by implementing more ambitious reforms to promote economic diversification and climate resilience.
The new Country Climate and Development Report (CCDR) also concludes that business as usual is not an option. Economic losses could reach up to 17% of GDP by 2050 if reforms to diversify the economy and attract more climate investments are not taken. Climate impacts could also increase total health costs from $92 million in 2010 to $260 million by 2050.
“The Republic of Congo is at a crossroads. Climate change threatens the country’s development gains and poses significant risks to its natural, physical and human capital, therefore to its development objectives,” said Cheick Kante, World Bank Country Director for the Republic of Congo. “This report aims at promoting a debate on climate and development issues and identifies priority areas for action that can generate a greener and better future for all Congolese people”.
The EU-Kenya free trade deal shows a waning ‘Brussels effect’ (EUobserver)
With other EAC countries not willing to sign the EPA, Kenya decided to make use of the variable geometry principle of the bloc, which allows a member state to move forward without other EAC members. The EPA with the East African Community, which is one of those groups, was already dead and gone in 2016, with EAC member states recognising that local industries would not be able to withstand competitive pressures from EU firms, locking the region even further in its role of provider of low-value-added primary commodities.
Kenya, a symbol for the EU Global Gateway’s impact and struggles (EURACTIV)
Mombasa is a gateway to the world for the landlocked countries of Eastern Africa. Out here, trucks from Uganda, Tanzania, the Democratic Republic of Congo, and many more, unload their cargo onto ships bound for Europe. This East African harbour is a gateway for the continent to the rest of the world, which is increasingly attracting investors, including the EU and China.
Europe is Mombasa’s “main market for fresh produce and flowers”, the harbour’s managing director, Captain William K. Ruto, told Euractiv. The Dutch port of Rotterdam accounts for 70% of the traffic, he said, followed by the United Kingdom, Germany, and France.
For the EU, investing in trade routes is about economic development and a way to push for a more environmentally friendly seaborne trade route over air freight, the bloc’s experts say. That’s the reason the EU and its member states invest in the so-called Northern Corridor. The strategic trade route, identified as such by the African Union, starts and ends at Mombasa port, linking the Great Lakes region of Burundi, Democratic Republic of Congo, Rwanda, South Sudan, Uganda, and Kenya with the world.
Outcry as miraa exporters kicked out of Kenya airport (The East African)
Miraa exporters have protested a decision by the Kenya Airports Authority (KAA) to relocate miraa cargo handling from warehouses at Jomo Kenyatta International Airport (JKIA).According to a letter from KAA, all miraa and avocado consignments will be sorted and packed at a warehouse outside the airport from October 9.The letter said the decision was based on a meeting held by the Head of Public Service with miraa exporters.
“No miraa pickups will be allowed to access JKIA premises as discussed in the security meeting,” reads the letter by KAA Acting Managing Director Henry Ogoye. But the Nyambene Miraa Trade Association has protested the directive to evict miraa exporters from JKIA, saying it was misinformed.
India, Tanzania eye expanded trade in local currencies (Anadolu Ajansı)
Indian Prime Minister Narendra Modi and Tanzanian President Samia Suluhu Hassan Monday expressed a desire to expand bilateral trade using local currencies, according to a joint statement issued after their meeting in the Indian capital New Delhi on Monday.
The Indian central bank has cleared the way for trade using local currencies i.e. Indian rupee and Tanzanian shilling by allowing the authorized banks in India and Tanzania to coordinate, the statement issued by the Indian Foreign Ministry said, adding that two sides agreed to continue with the “consultations in order to address any concerns so as to ensure the sustainability of this arrangement.” It also said the two sides agreed to increase bilateral trade volume, directing the respective officials to explore new areas of trade.
AfDB, ECOWAS Bank Sign Dual Currency Credit to Tackle Food Insecurity (Business Post Nigeria)
The African Development Bank Group (AfDB) and the ECOWAS Bank for Investment and Development (EBID) have signed an agreement for a dual currency line of credit comprising $50 million and €50 million to support local agricultural businesses in West Africa. The credit lines are expected to strengthen food security, economic growth, and employment generation.
President and Chairman of the Board of Directors of EBID, Mr George Agyekum Donkor said, “This credit facility illustrates EBID’s continued efforts to mobilise adequate resources to honour its commitment to the region’s transformation agenda through supporting and investing in key sectors, in this case, the agribusiness industry.”
This is the latest after the AfBD board of directors approved the dual currency line of credit for EBID early in 2023. The Africa Growing Together Fund, which is sponsored by China and managed by AfDB, will provide an additional $30 million in co-financing.
Energy Experts Examine Texts to Consolidate ECOWAS Power Market (ECOWAS)
Energy experts from ECOWAS Member States are meeting in Cotonou, Benin to consider and validate three major legal texts which will help to strengthen the regulatory framework for the ECOWAS Regional Electricity Market.
They are the Directive for the Harmonization of the Criteria for the Granting of Licences and Authorization to Participate in the Regional Electricity Market; the Regulation on the Surveillance of the ECOWAS Regional Electricity Market; and the Regulation on the ECOWAS Regional Electricity Market Levy.
While the Directive on the Harmonization of the Criteria for Granting Licenses and Authorization for Participation in the Regional Electricity Market is expected to promote a level-playing field for cross-border electricity trade among ECOWAS Member States, the Regional Electricity Market Supervision Regulation will establish rules and procedures for the supervision of participants in cross-border power trade to promote a favourable regional approach to investment and capacity development.
Ecowas rules to protect pastoralists discourage investments in modern livestock farming
Regional airlines turbulent on economic growth (New Era)
Poor intra-Africa airline connectivity, inadequate infrastructure and unclear policies, inconsistent regulations and rising aviation taxes and other statutory charges are preventing African economies from reaching their full potential.
This warning was issued by the Airlines Association of Southern Africa (AASA). The trade body, which held its annual general assembly in Luanda, Angola, last week, called on regional governments to open access to their markets and allow more routes and more flights where regulatory impediments were blocking growth
AASA also cautioned that without a clear coordinated strategy for the development, production and supply of Sustainable Aviation Fuels (SAF) and improvements to airspace management to streamline traffic flows, the region’s airline industry would fail to meet the global net-zero 2050 carbon emissions target.
AU High Level Dialogue on democracy and governance explores trade as a bridge for peace. (AU)
The state of democratic governance and peace in Africa has an impact on the growth performance and development at the national, regional and continent levels. The 12th edition of the High-Level Dialogue on democracy, human rights, and governance in Africa has concluded providing a platform for various stakeholders to examine the megatrends on the security and socio-economic development landscape and proffering solutions to existing and emerging causes of governance, security and development deficits.
Convened under the theme “delivering peace dividends through the implementation of the African Continental Free Trade (AfCFTA), the two-day High-Level Dialogue was preceded by youth consultations and Gender pre-forum where participants engaged niche-specific discussions on avenues to advance the full and meaningful participation of women and youth in development and security matters.
In examining the historical context and changing the democratic governance and security landscape of the continent, the forum drew comparable lessons on how low levels of development are an underlying cause of insecurity and explored how trade, particularly with the implementation of AfCFTA, can reverse the trends and address security and governance challenges. Poor governance hinders investments as private and foreign investors do not find the environment conducive for sustainability and returns on investments.
Inaugural Board Meeting of the AfCFTA Adjustment Fund Corporation Holds in the Republic of Rwanda (Afreximbank)
Following the mandate by the African Union (AU) Summit of Heads of State and Government and the AfCFTA Council of Ministers responsible for Trade, Afreximbank and the AfCFTA Secretariat were mandated to establish and operationalise the AfCFTA Adjustment Fund through a General Partnership – the AfCFTA Adjustment Fund Corporation – with operations of the Fund domiciled in Rwanda.
H.E. Wamkele Mene, Secretary-General of the AfCFTA Secretariat, said: “This inaugural meeting of the Board of the AfCFTA Adjustment Fund heralds a commendable milestone in the successful implementation of the Agreement. In collaboration with our strategic partner Afreximbank, we are committed to provide the necessary support to State Parties and private entities through the Adjustment Fund. The Board, composed of experts and driven leaders of the continent, will carry out the necessary actions to ensure compliance with all rules and regulations.”
Africa emerges as container bright spot (Splash247)
A bright spot for container shipping in a challenging year has been Africa, something experts believe will be spurred on in the coming years by the creation of the African Continental Free Trade Area (AfCFTA), the world’s largest free trade area.
Containerised imports into Africa in the first seven months of this year grew by 10.1% in comparison to the same period in 2019 and by 6.7% compared to the historically high 2022, according to Maersk Broker. The main driver of this increase has been the trade from Asia into the African west coast. The trade volume on this tradelande has grown by 20.9% compared to last year. Volumes from the Middle East and South America into West Africa have also contributed to the increase.
Such growth trends are also visible in the deployment on the Asia – West Africa trade, where the deployed tonnage in October this year has grown by 22.3% in teu terms compared to the same period of 2022, according to data from Maersk Broker. “Since most parts of Africa are experiencing rapid urbanisation, we expect the demand for building materials, electronics, furniture and other containerised goods to continue increasing,” stated the latest weekly container report from Maersk Broker.
Regional consultations on simplification of trade documents in the region conducted in Addis (COMESA)
In an initiative to simplify and standardize trade documents and procedures in the region, the inaugural regional consultative meeting on the implementation of measures outlined in the World Trade Organization’s Trade Facilitation Agreement took place in Addis Ababa, Ethiopia, on 27 – 29 September 2023.
The forum, which was the first of this nature, was organized by COMESA through the support of the 11th European Development Fund (EDF) – Trade Facilitation Programme, which is facilitating various capacity-building initiatives. The initiatives span a wide range of areas, including Customs Automation, the Regional Trade Information Portal (RTIP), the Regional Authorized Economic Operator (AEO) program, Coordinated Border Management, and the establishment of a Regional Single Window.
This is a significant step toward fulfilling the directive set forth during the 42nd COMESA Council of Ministers Meeting held in November 2021. At that meeting, it was decided that the COMESA Secretariat, in collaboration with Member States and Development Partners, should mobilize both technical expertise and financial resources for the implementation of commitments falling under Category C of the WTO Trade Facilitation Agreement.
Data centres critical to unlock $1.2trn AfCFTA - NCC (Daily Trust)
The Nigerian Communications Commission (NCC) said data availability is critical to unlocking the opportunities embedded in the $1.2 trillion African Continental Free Trade Area (AfCFTA).The commission’s Executive Vice Chairman, EVC, Prof. Umar Garba Danbatta stated this at the fourth telecommunication sector sustainability forum, themed; ‘Mainstreaming Data Centres in the Nigerian Digital Economy’ held yesterday in Lagos.
“With the commencement of the implementation of the African Continental Free Trade Area (AfCFTA), the role and criticality of Data centres become increasingly overwhelming. “This is underscored by the kind of efficiency derivable when critical resources are shared at costs far significantly smaller than the actual costs of setting up such resources from scratch,” he said.
The EVC who was represented by the commission’s Head of Tariff Administration, Mr. Sunday Atu said the presence of data centers would avail the opportunities for businesses and public sector entities to benefit from latent treasure within the AfCFTA.
DDG Ellard highlights impact of technological developments on global trade (WTO)
In a keynote speech at the 2023 Annual WTO Conference organized by the British Institute of International and Comparative Law in London on 6 October, Deputy Director-General Angela Ellard outlined how technological developments are changing the face of international trade. She stressed the increased role of services, especially digitally-delivered services, in the global economy, and how new technologies have helped to facilitate trade and improve transparency. She also outlined the latest state of play in negotiations on updating WTO rules.
A widening digital divide and severely lagging Internet-use in developing countries threaten to leave those States in the technological wake and preclude progress on the Sustainable Development Goals (SDGs), a senior United Nations official and Member States told the Second Committee (Economic and Financial) today as it took up information and communications technology (ICT) questions.
Angel Gonzalez Sanz, Head of Science, Technology and Innovation in the Division on Technology and Logistics of the United Nations Conference on Trade and Development (UNCTAD), introduced the Secretary-General’s report on Progress made in the implementation of and follow-up to the outcomes of the World Summit on the Information Society at the regional and international levels (document A/78/62−E/2023/49), spotlighting three key aspects: the changing context of digital cooperation; the impact of conflict and the risk of cyberconflict; and data governance.
Stressing the need to fully integrate the digital dimension into addressing poverty, gender equality and climate change, he noted that although 63 per cent of the world’s population is connected, least developed countries still only count 27 per cent of their populations as Internet users. “There is a risk that the data economy will be permanently dominated by a few stakeholders from a handful of technologically advanced economies,” he warned.
UN calls for closing internet connectivity and digital governance gap (UN News)
WTO members look into role of preferential rules of origin in expanding LDC trade (WTO)
The role of preferential rules of origin in increasing trading opportunities for least-developed countries (LDCs) was the focus of the WTO Sub-Committee on LDCs on 5 October and an experience-sharing session held on the same day. Representatives from the private sector and academia highlighted the challenges and opportunities LDCs face in taking advantage of trade preferences.
Rules of origin are the criteria used to define where a product was made. Many preference programmes stipulate certain conditions relating to rules of origin, indicating how LDCs and developing economies can make use of these preferences.
UNCTAD sets out pathways to ease commodity dependence for greener, inclusive growth (UNCTAD)
The UN Conference on Trade and Development (UNCTAD) has called on the global community to provide support for green industrial policies in commodity-dependent developing countries to transform and diversify their economies amid the global quest for a low-carbon energy transition.
These are sector-targeted policies that reshape a country’s economic production structure, attracting investments to increase countries’ domestic value-addition and integration in regional and global supply chains, with the aim of reducing commodity dependence, promoting economic and social goals, and generating environmental benefits.
UNCTAD’s Commodities and Development Report 2023, published on 9 October, spotlights the actions needed domestically and globally to tackle the intertwined triple development challenges of commodity dependence, inequality and climate change.
“The path to diversification that is inclusive and more sustainable is within our reach, but it demands strong political commitment from commodity-dependent developing countries and their development partners,” UNCTAD Secretary-General Rebeca Grynspan said. “This report outlines a holistic approach that can drive sustainable development, safeguard vulnerable populations and contribute to global climate goals.”
UNCTAD calls for the redoubling of efforts towards economic diversification in countries where 60% or more of merchandise export revenues come from primary commodities, including crude oil, copper and wheat.
Multi-year Expert Meeting on Commodities and Development, fourteenth session
Commodity dependence: 5 things you need to know
World’s poorest countries to slash public spending by more than $220 billion in face of crushing debt (Oxfam America)
More than half (57 percent) of the world’s poorest countries, home to 2.4 billion people, are having to cut public spending by a combined $229 billion over the next five years, reveals new analysis by Oxfam today ahead of the World Bank and International Monetary Fund (IMF) Annual Meetings in Marrakech.
On current terms, low- and lower-middle income countries will be forced to pay nearly half a billion dollars every day in interest and debt repayments between now and 2029. Entire countries are facing bankruptcy, with the poorest countries now spending four times more repaying debts to rich creditors than on healthcare.
“The World Bank and IMF are returning to Africa for the first time in decades with the same old failed message: cut your spending, sack public service workers, and pay your debts despite the huge human costs. They must show they can genuinely change to reverse the tide of widening inequality within and between countries,” said Oxfam International Interim Executive Director Amitabh Behar.
Going into these Annual Meetings, two big issues are at the forefront: the debt crisis and the urgent need to generate more resources for sustainable development, climate adaptation and tackling poverty in low- and middle-income countries. However, the solutions being discussed by the World Bank, IMF and their biggest shareholders are only going to turn the vicious circle into a vortex.
SMEs in Africa take more loans as global peers wean off debt (The East African)
Loans to small and medium enterprises (SMEs) on the continent have increased over the past year, even as most similar businesses globally reduce borrowing following improvement of the economic from the slump of the pandemic and Ukraine crises. Latest figures from the International Monetary Fund (IMF) show that while the amount of outstanding loans owed by SMEs in 2022 generally decreased in Europe, Middle East, Central Asia, and the Western countries, in Africa, they increased.
“After an initial surge at the onset of the Covid-19 pandemic, the outstanding amount of SME loans as a share of GDP has consistently declined throughout 2022 in several regions,” reads the IMF’s latest Financial Access Survey published this week. But in Africa, despite the unwinding of the support programmes and monetary tightening just like the rest of the globe, the amount of loans owed by businesses continued to rise in 2022, indicating that the economic conditions could be worsening for small enterprises on the continent.
Quick links
Africa’s coups epidemic hampers trade, takes heavy toll on AfCFTA
30 Heavily Indebted Poor Countries
Digitalized payment methods are affecting agriculture and the scopes of International Development
Global South needs locally driven innovation to turn tide on UN’s SDG agenda
No more trade-offs: Pitting people against planet is dangerous and not how we will thrive
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Energy transition has potential to dramatically increase demand for steel (Engineering News)
With local electricity grid constraints becoming more prevalent and given the global emphasis on decarbonisation, the ongoing energy transition, as well as loadshedding, is expected to present both opportunities and risks for the South African steel industry, which is in decline. The South African Steel and Metal Fabrication Master Plan – released in 2021 – describes the local steel industry as being “largely in survival mode”, necessitating measures to increase demand for local steel and effective localisation.
To this end, the Steel and Engineering Industries Federation of Southern Africa (Seifsa) argues that government spending should prioritise local steel suppliers, with Seifsa COO Tafadzwa Chibanguza noting that the evolving energy transition and local energy constraints are creating a market for local steel supply for this transition.
“The global decarbonisation drive is well and truly under way, presenting both opportunities and risks for the South African sector,” he notes, explaining that renewable- energy implementation, which will also include strengthening the transmission grid, will require the establishment of more fabricators that
Futurelife investment in Dube Trade Port SEZ created hope for a better future (Devdiscourse)
KwaZulu-Natal Economic Development, Tourism and Environmental Affairs MEC, Siboniso Duma, says the investment in a new Futurelife manufacturing facility at the Dube Trade Port Special Economic Zone (SEZ) has created hope for a better future for the province. Duma made the remarks during the launch of a R75 million investment by South African health foods manufacturer, Futurelife, which took occupation in a new manufacturing facility in Dube TradePort, located near the King Shaka International Airport.
The modern factory is set to streamline Futurelife’s production processes, enhancing the organisation’s efficiency through the purchase of advanced machinery and equipment that will enable the factory to operate at international standards. Cutting the ribbon to officially mark the factory opening for business, Duma emphasised the important role that the factory will play in sustainable economic development in KwaZulu-Natal.
Duma said locating the business within the Dube Trade Port SEZ will ensure efficiencies in the operations while reducing the logistics costs. Ahead of the COVID-19 lockdown, about 315 000 people were employed in manufacturing, representing just of 12% of total formal and informal employment. He said the plant is an integral part of the provincial industrial strategy which aims to stimulate the manufacturing industry in order to increase employment.
‘Anchor demand’ a must for renewables masterplan to succeed (Engineering News)
The energy sector requires consistent demand from a consistent flow of renewable energy projects in order to invest in local manufacturing, and not “haphazard demand that comes and goes”, says South African Renewable Energy Masterplan (Sarem) facilitator and Trade and Industrial Policy Strategies (TIPS) senior economist Gaylor Montmasson-Clair.
“Anchor demand is critical. For me it is really important that we smooth out that process going forward. “We have to acknowledge that every country that has built a renewable energy industry to date has done it with significant anchor demand and a very supportive policy framework. “If we think we are going to manage that without those two factors, we are kidding ourselves,” says Montmasson-Clair.
Sarem seeks to expand South Africa’s manufacturing industry on the back of government’s procurement of renewable energy from private investors, among other goals.
AGOA extension will boost trade between South Africa and the United States (IOL)
South Africa wants to see the continuation and expansion of international trade, but trade must be balanced and mutually beneficial amongst trading partners.
It is encouraging to note that the South African government and the U.S. administration are working together to explore extension of the African Growth and Opportunity Act (AGOA) for a further period of 10 years.
This is a welcomed development considering that AGOA, which expires in 2025, provides eligible sub-Saharan African countries including South Africa with duty-free access to the U.S. market for over 1,800 products. This is in addition to the more than 5,000 products that are eligible for duty-free access under the Generalised System of Preferences programme.
As part of the engagement to extend AGOA, South Africa will host the 20th U.S.-sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum) in Johannesburg from 2-4 November 2023.
The long-awaited AGOA Forum, which is expected to also feature the ‘Made in Africa Exhibition’, seeks to strengthen trade and investment ties between the United States and sub-Saharan Africa countries.
Kenya and US in advance talks on Agoa extension as exports soar to Sh50b (People Daily)
Kenya and the United States are in advanced talks to extend the African Growth Opportunity Act (Agoa) for another 10 years. Industry Principal Secretary Juma Mukhwana disclosed that his trade counterpart Alfred K’ Ombudo is in the US to escalate the talks and conclude the same in order to allow smooth trade operations between the two countries. The high-level talks between officials of the two governments follow the conclusion of a visit to the US by President William Ruto.
Mukhwana said the country has continued to access the United States market under the Agoa since 2000, an opportunity that has led to the continued growth of textile and apparel industry among other sub-sectors.
“I can confirm the talks between the two governments are at progressive stage and there is positive indication of us being granted the 10-year extension,” he stated.
The talks come at a time data from Kenya National Bureau of Statistics (KNBS ) shows that export of duty-free goods to the US under Agoa crossed the Sh50 billion mark after declining last year. It indicates that the value grew by 20 per cent, marking one of the biggest leaps in seven years. The goods, mainly textile products, increased from Sh42.2 billion in 2020 to Sh50.6 billion in the review period. “All the selected indicators under the EPZ garment and apparel sub-sector reported growths in 2021,” said the KNBS. Mukhwana said the US trade opportunity is over and above other strategies Kenya is fast-tracking to expand her share in the international market.
He gave the example of the recently concluded Economic Partnership Agreement (EPAs) with the European Union, the African Continental Free Trade Area (AfCFTA), bilateral agreements and through treaties under the regional blocs.
Imports from EAC dip by Sh5.4b on frosty relations (People Daily)
Kenya slashed its import from East African Community (EAC) Partner States by about Sh5.4 billion in the first six months of 2023 as protectionism and border clearance difficulties raged among the bloc members. Data from Kenya National Bureau of Statistics (KNBS) shows that by June 2023, the combined value of imports from the bloc narrowed to Sh42.9 billion, representing an 11.2 per cent dip compared to Sh48.3 billion in a similar period in 2022.
Other sources, save for far East Asia, benefited from this decline in Nairobi’s trade with the EAC bloc, with countries from the Common Market for Eastern and Southern Africa (Comesa) and European Union (EU) sealing the gap.
Kenya has often had a frosty relationship with its major neighbours – Uganda and Tanzania – leading to reactionary policies and restrictions from either side.
For instance, Uganda, Kenya’s main export market, has also been having frequent trade tiffs with Nairobi over products like sugar, milk, and eggs, which are now attracting heavier levies. Tanzania also imposed new guidelines on trade in grains with its EAC partners during the period, forcing Kenya to seek alternatives.
Exports to Mozambique worth N$4.1 billion (Windhoek Observer)
Namibia exported goods worth N$4.1 billion to Mozambique in the period 2015 to 2022, statistics by Namibia Statistics Agency revealed this week. The figures also revealed that on the demand side, goods amounting to N$1.7 billion over the same period were sourced from Mozambique.
The export basket to Mozambique comprised mainly of fish, medicaments (including veterinary) and motor vehicles for the transport of goods whereas the import basket comprised of special commodities not classified according to kind, ‘electrical machinery and apparatus’ and milk.
The Agency said in August 2023, Namibia exported goods worth N$4.5 billion to the whole of Africa of which N$45.7 million was exported to Mozambique. Whereas, on the demand side, the country sourced goods from Africa worth N$4.8 billion during the month under review of which N$665 240 thousand was sourced from Mozambique.
Southern African Customs Union (SACU) was the dominant export destination for Namibia’s goods during August with a share of 44.3% of total exports.
New currency for South Africa, China and Russia – Godongwana draws the line (BusinessTech)
Finance minister Enoch Godongwana says there is no official proposal to introduce a new BRICS currency at this point in time, and that the trade relationships with the United States and the European Union are not under threat from talks of stronger ties within the bloc.
Responding in a written parliamentary Q&A this week over the proposed unified BRIC currency, Godongwana reiterated that this was not a formal proposal, and there was no talk of this emanating from the bloc at this stage.
It was heavily speculated ahead of the BRICS Summit in August the bloc would put forward a proposal to create a new currency between the participating nations to ease trade and to side-step sanctions imposed by the West.
According to Harry Scherzer, CEO at Future Forex, with over 74% of international trade being done through the US dollar, there has been a push from the East for some form of de-dollarisation – which basically suggests not using the dollar as much for international trade in order to remove the USA’s control over international trade.
However, Scherzer noted that having a BRICS currency would be extremely onerous to put into place including difficulties with aligning monetary policies and interest rates across countries with hugely differing populations and economic circumstances.
“Faced with an acute economic and financial crisis, the authorities have adjusted macroeconomic policies, successfully completed their domestic debt restructuring operation, and launched wide-ranging reforms. These actions are already generating positive results, as growth in 2023 has proven more resilient than initially envisaged, inflation has declined, the fiscal and external positions have improved, and the exchange rate has stabilized.
“Consistent with the authorities’ commitments under the Fund-supported program, fiscal performance has been strong, and Ghana is on track to lower the fiscal primary deficit on a commitment basis by about 4 percentage points of GDP in 2023. Spending has remained within program limits. To help mitigate the impact of the crisis on the most vulnerable population, the authorities have significantly expanded social protection programs. On the revenue side, Ghana has met its non-oil revenue mobilization target. Ambitious structural fiscal reforms are bolstering domestic revenues, improving spending efficiency, strengthening public financial and debt management, and enhancing transparency.
Members welcome progress by Comoros towards concluding accession negotiations ahead of MC13 (WTO)
Ambassador Zniber underlined that since the last Working Party meeting, held in January this year, Comoros has made significant strides towards filling the remaining gaps in the WTO accession process. He noted that “a key milestone” was reached in May when Comoros’ draft Goods and Services Schedules were verified by WTO members who had negotiated market access agreements bilaterally with Comoros.
“This is a very significant development as two of the three key elements constituting Comoros’ draft Accession Package are now ready for consideration by the Working Party,” said the Chair.
Comoros: New World Bank Report Identifies Reforms to Address Fiscal Challenges to Achieving Inclusive Growth (World Bank)
For Comoros to have a fiscal policy that achieves inclusive growth, while being sustainable, the country must improve public financial management, enhance domestic resource mobilization, improve the efficiency of public health spending, and take steps to incorporate climate change and disaster risk management.
Improved public financial management could generate fiscal space of up to 1.8% of GDP, which could be used to finance expenditures that will improve public service delivery, such as healthcare. This is according to the World Bank’s Public Expenditure Review (PER), launched today.
The Union of the Comoros has long struggled with modest economic expansion and fiscal issues which have had an impact on long-term growth. GDP growth averaged 2.7% from 2011–2020, resulting in per capita GDP growth averaging 0.4% over the same period. The economy has been primarily driven by consumption, fueled by remittances and tourism receipts from the diaspora. Economic activity is undiversified, characterized by a small, largely informal, private sector with limited value added.
Illicit trade in marine resources costs West Africa $26b – Minister (Ghana Business News)
Mr Samuel A. Jinapor, Minister for Lands and Natural Resources, has said that the West African Sub-region annually loses $26 billion to illicit trade in marine, including illegal fishing. “On the economic front, Interpol estimates that 38 per cent of global criminal proceeds are derived from nature crimes,” he said. Mr Jinapor was addressing selected media personnel at the nature crimes in Ghana workshop, organised by the US Agency For Global Media-USAGM, held in Accra.
“Crimes such as illegal fishing, illegal mining, illegal logging, illegal overland export, under-declaration of products, mislabeling of products, poaching, wildlife trafficking, illicit wildlife trading, and land degradation, continue to threaten our environment, biodiversity, and the lives and livelihoods of millions of people across the world, while robbing us of the resources needed for development,” the Minister said. He said these crimes had damaged some vital and vulnerable ecosystems in the world, such as forests, wildlife, oceans, wetlands, coral reefs, and mangroves.
ECOWAS talks travel, trade benefits of regional biometric ID card in Cote d’Ivoire (Biometric Update)
Cote d’Ivoire is the latest member of the Economic Community of West African States (ECOWAS) to host a workshop meant to emphasize the importance of the regional biometric ID card dubbed ENBIC. Through its Directorate of Free Movement of Persons and Migration, the ECOWAS Commission, on October 2 and 3, organized a workshop in Abidjan which brought together Customs, Police and Gendarme officers, union leaders, students and immigration officials as well as representatives of the National Institute of Public Hygiene, according to a press release.
The goal of the event was to underline the usefulness of the ENBIC (ECOWAS National Biometric Identity Card) in boosting regional travel and economic integration among the 15 members of the regional grouping. The ENBIC is a biometric credential adopted by ECOWAS heads of state in 2014 as a way of enhancing travel and trade transactions among the countries that make up the economic and political bloc.
Stanbic Bank Africa Trade Barometer: Ghana falls to 5th from 2nd (MyJoyOnline)
Ghana fell to the 5th position from 2nd in the third edition of the Stanbic Bank Africa Trade Barometer (ATB). This show’s that Ghana’s trade attractiveness and openness have taken a nose dive.
Although the country improved from position 10th to 7th in the Stanbic Bank 3-Year Quantitative Trade Barometer (SB QTB) ranking, this was not enough to maintain its overall position relative to the other markets. South Africa maintained its position as number one in terms of trade infrastructure development and attractiveness. In all, 10 countries were assessed. They were Angola, Ghana, Kenya, Mozambique, Namibia, Nigeria, South Africa, Tanzania, Uganda and Zambia.
While the government collaborates with fellow African countries through membership in Africa Continental Free Trade Agreement (AfCFTA) where preferential tariff regulation exists, perceived difficulties have increased over time. This emphasises the importance of enhanced government support through policies that prioritise local businesses, as tax burdens tend to be higher for local businesses compared to foreign businesses, in light of the government’s focus on attracting FDI.
According to the report,exporters and importers remain bullish on the prospect of increased cross-border trade.
African countries can generate $70billion in trade activities – AfCFTA (Nairametrics)
The Africa Continental Free Trade Area (AfCFTA) has suggested that African countries have the potential to generate over $70 billion in trade activities. This was disclosed by Silver Ojakol, Chief of Staff of the AfCFTA Secretariat, during the 2023 Regional Integration Issues Forum in Accra, Ghana.
The RIIF is aimed at increasing awareness of AfCFTA’s benefits, especially for Small and Medium Enterprises (SMEs) which helps to enhance SMEs’ capacity for intra-African trade. The AfCFTA also emphasized that significant earnings could be realized if SMEs collaborate and adopt AfCFTA principles to overcome trade barriers.
Ojakol, who was representing AfCFTA Secretary General Wamkele Mene, said: “If African countries unite and achieve even a one per cent increase in trade among themselves, we would generate $70 billion, surpassing the $58 billion provided by donors as development assistance.”
Silence guns not trade: Africa’s entrapped trade corridors worsen AfCFTA implementation (The Guardian Nigeria)
The recent military coup in Niger and later Gabon has not only undermined democratic governance but also threatened to reverse the scanty gains of intra-continental trade under the African Continental Free Trade Agreement (AfCFTA), which is now in its third year of implementation. It also threatens trade treaties and agreements, creating an environment of uncertainty for businesses and investors in the affected countries with a spillover effect on neighbouring countries.
As a result of the coups, heavy trade and financial sanctions have been applied on Niger as France, Germany, European Union (UN) and the United States (US), have suspended aid programmes. The ECOWAS sanctions include the freezing of Nigerien assets, a ban on all commercial flights, cutting off its electricity supply, shutting down trade activities at all the country’s borders and suspending all commercial and financial transactions.
The bilateral trade deficit between Nigeria and Africa continues to widen in favour of the rest of the world, even more so in the last five years. Data sourced from the John Hopkins China-Africa Research Initiative revealed that China’s exports to Nigeria last year stood at $23.9 billion and $164.16 billion for the whole of Africa. Imports from Nigeria for the same time frame were just $1.6 billion, a deficit of over 22 million dollars.
UN security council and AU peace and security meeting opens in Addis Ababa
Transforming Postharvest Management: A Sustainable Leap For Intra-African Agricultural Trade (Africa.com)
Quality control and stable markets are essential pillars of Africa’s food systems, ensuring that households can access nutrient-rich food, stabilize prices, and improve overall diets. However, with Africa’s swelling population, the current food value chain often falls short, leading to concerning outcomes. Approximately 37% of Africa’s food production goes to waste or is lost, resulting in significant financial implications and exacerbating hunger issues.
To bridge this gap and address these pressing challenges, Africa urgently needs innovative value chains, regional integration, and robust cross-border trade links. As the landscape of consumer preferences, technology, and global markets evolves, so must our strategies in agriculture and food production. Enhancing postharvest management, particularly within nutrition-sensitive value chains, can be a vital part of the solution.
Natural resource-backed loans are a disaster for Africa, warn IMF and the African Development Bank (AfDB)
The International Monetary Fund (IMF) has strongly supported a call by the African Development Bank Group urging countries in Africa to stop borrowing loans backed by their natural resources. The IMF Managing Director Kristalina Georgieva met Thursday with the President of the African Development Bank Group, Dr Akinwumi Adesina, in Abidjan, Cote D’Ivoire. It is the first time an IMF head has visited the Bank headquarters since its establishment in 1964.
Welcoming Georgieva, Adesina said, “the natural resource-backed loans are non-transparent, expensive and make debt resolution difficult.” He warned that if the trend continues, “it will be a disaster for Africa.”
The IMF chief said she is visiting Africa at a time when the continent holds much promise for more dynamic growth in the world. “We often focus on the challenges that the continent is facing because it is here the impact of climate change is much more severe, where macro-economic and financial instability and debt are amplified.” “But we want to focus on opportunities in Africa for the simple fact that the capital is in the North and a young population is in the South, primarily here in Africa. Unless we build a bridge for capital to flow to where it is needed most, it could lead to a bigger problem.”
Remove trade barriers to increase per capita income, IMF tells African leaders (TheCable)
Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), says African governments must remove trade barriers to increase the continent’s per capita income. Georgieva said international cooperation is weakening at a time the world needs it most, adding that the bridges that connect countries are corroding as trade and investment barriers rise.
The IMF managing director gave advisory on Thursday, in Côte d’Ivoire, during a curtain raiser speech in preparation for the 2023 World Bank and IMF annual meetings scheduled for October 9 to 15, in Morocco. Georgieva, speaking on trade barriers, said operating a free trade market will push up the per capita income of an African country by more than 10 percent.
In her remarks, Georgieva said the full implementation of the African Continental Free Trade Area (AfCFTA) will transform Africa into the world’s largest free-trade area and improve the living standards of the continent. “A fragmented world is especially challenging for emerging and developing countries, because of their greater reliance on trade and their more limited policy space,” she said. “Compared with other regions, the African continent stands to suffer the biggest economic losses from severe fragmentation”.
2023 IMF Annual Meetings Curtain Raiser Speech (IMF)
To put it simply, a prosperous world economy in the 21st century requires a prosperous Africa. Advanced economies are rapidly ageing, but they have abundant capital. The key will be to better connect that capital to Africa’s abundant human resources—to inject more dynamism into the current anemic global growth outlook. Africa also makes the strongest case for building economic resilience. The COVID-19 pandemic, Russia’s war in Ukraine, climate disasters, the cost-of-living crisis, political instability: these are the many faces of a shock-prone world. Their impact is most fully on display in Africa, as is the overwhelming necessity to better prepare ourselves for that world. And a prosperous Africa requires maintaining the most important bridge of all, the bridge that connects all countries—that of international cooperation.
Let me conclude by returning to 1973, the last time the Annual Meetings were held in Africa. Back then, delegates faced many of the same challenges we face now: high inflation, conflicts, and fundamental economic shifts. In his speech at the Annual Meetings, Kenyan President Jomo Kenyatta declared the “need for effective cooperation has never been greater.” And he finished with one word: “Harambee,” meaning “pulling together in full cooperation.”
ITU Regional Forum Concludes with Calls for Transforming Pledges to Commitment (ENA)
The International Telecommunication Union (ITU) Regional Development Forum for Africa has concluded today with calls to transform pledges to commitment. During the closing session of the three-day forum in Addis Ababa, Partnerships for Digital Development Chief Cosmas Zavazava said ITU has through its Partner2Connect Digital coalition received a pledge of 31.88 billion USD from 392 entities in 132 countries.
As a result “we had numerous commitments to be implemented in areas of infrastructure, cyber-security, digital skills and capacity-building, digital innovation systems, and digital inclusion and others,” he added. Getting the pledges is an important step, but implementing the pledges is a bit of a challenge, the chief said, noting that making impacts on people with these pledges is more crucial.
Least developed countries set expectations for COP28 with Dakar Declaration (Down to Earth)
Ministers from the world’s 46 least developed countries (LDC) issued a joint Dakar Declaration on Climate Change 2023 outlining their expectation and priorities for 28th Conference of Parties (COP28) to the United Nations Framework Convention on Climate Change. The Dakar Declaration called for urgent global emissions reductions, increased climate finance, a strong outcome operationalising the new Loss and Damage Fund and an ambitious Global Stocktake to close the gaps in global climate action.
While LDCs account for more than 14 per cent of the global population, they only account for about 1 per cent of emissions from fossil fuels and industrial processes, according to the ministers. In addition, the countries bear the least historical responsibility for climate change, are forced to adapt beyond their capabilities and are at the forefront of the climate crisis.
The COP28 will be convened from November 30, 2023 to December 12, 2023 in Dubai, United Arab Emirates.
Trade facilitation measures most commonly needing implementation assistance spotlighted (WTO)
Based on notifications from developing members and least-developed country (LDC) members, five measures in the Trade Facilitation Agreement (TFA) have been identified where assistance has been most commonly requested for implementation for the next two years. The WTO Secretariat presented this update at a meeting of the Committee on Trade Facilitation dedicated to assistance and capacity building on 5 October as part of “Trade Facilitation Week”.
Agriculture negotiators prepare ground for October senior officials meeting, MC13 (WTO)
The Chair of the agriculture negotiations, Ambassador Alparslan Acarsoy of Türkiye, briefed WTO members at meetings on 2-3 October on the latest state of play and outlined his plan to advance the talks. Members discussed a range of negotiating topics, emphasizing the need to address food security challenges. They also exchanged views on guidance that senior officials could provide when they meet on 23-24 October at an event at the WTO which is expected to be crucial in defining the path towards the 13th Ministerial Conference (MC13) in February 2024.
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President Cyril Ramaphosa: Launch of the Border Management Authority (South African Government)
When our country’s ports of entry and borders are well-protected and well-managed, we are able to prevent the illegal importation and exit of goods. We are able to facilitate lawful trade at a greater scale and more efficiently. This is becoming increasingly important as we work with other countries in our region and elsewhere on the continent to increase intra-African trade. We see the Border Management Authority as a vital link in our efforts to harness the benefits of the African Continental Free Trade Area. A more secure border is important for curbing illegal migration, human smuggling and trafficking. It will help in combating cross-border crime.
The Border Management Authority was established in response to a number of serious challenges.
The movement of persons and goods at ports of entry has often not been as efficient as it should be, resulting in unnecessary delays and increased costs for individuals and companies. This in turn is harming our economy. Deficiencies in border management have also enabled corruption and organised and cross-border crime to thrive.
Pace of energy transition will define South Africa’s economic prospects (Engineering News)
Presidential Climate Commission (PCC) executive director Dr Crispian Olver says South Africa’s energy transition and the pace at which it progresses will determine the country’s long-term economic and human-development prospects and should, thus, no longer be treated only as an environmental problem.
Speaking at the Joburg Indaba, Olver acknowledged that stakeholders were “not of one mind” regarding the pace of the transition, despite broad-based agreement that South Africa needed to reduce its emissions, which were strongly associated with the continued dominance of coal in domestic energy production.
Addressing an audience that included several coal mining executives, Olver stressed that no PCC member expected the coal-fired power stations to close overnight, especially in the context of intense loadshedding. Nevertheless, he also cautioned against moving too slowly in a context where South Africa’s per capita emissions were 1.22 times the G20 average and significantly higher than those of India and even China.
South Africa eyes Botswana, Zambia, and DRC for acquisition of precious metals (Business Insider Africa)
According to CEO Nombasa Tsengwa, the Johannesburg-based coal firm is searching for copper assets in Botswana, Zambia, and the Democratic Republic of the Congo (DRC), the continent’s biggest copper producer. She said the company is also seeking manganese assets in its home country.
“We are looking at different opportunities simultaneously,” she said. “Partnerships where it makes sense...There are different tactics for acquiring these assets,” she added. International mining firms are vying for supplies of the metals that the world needs to shift to renewable energy and speed up the rise of electric cars.
FG to support local manufacturers with N75bn (Vanguard)
Vice President Kashim Shettima says the federal government will support local manufacturers with N75 billion by March 2024 to strengthen the manufacturing sector. Shettima said this while declaring open the second National Conference on non-oil export organised by the Nigerian Export Promotion Council (NEPC) on Wednesday in Abuja. The two-day conference is with the theme, “Building a Sustainable National Economy Through Non-Oil Export.”
Represented by Dr Jumoke Oduwole, Special Adviser on Presidential Enabling Business Environment Council (PEBEC) and Investment, Shettima said N75 billion was earmarked to support 100,000 start-ups and Micro Small and Medium Enterprises (MSMEs) at single digit interest rates.
Kenya inflation stays high amid improved food production (The East African)
Kenya’s production of key food items is projected to grow by up to 60 percent against last year even as food prices remain elevated, keeping inflation high. Latest data from the Ministry of Agriculture shows that maize production is projected to increase by 29.3 percent to 44.6 million bags; wheat by 62.6 percent to 4.9 million bags; Irish potatoes to 25.3 million bags and beans production to reach 11.7 million bags, a 56.3 percent growth.
The increase has been attributed to sufficient rains witnessed this year with the production of food crops such as sorghum also expected to grow by 150 percent to 3.3 million bags and millet by 62 percent to 1.1 million bags. Last year was one of the worst years for Kenya’s agriculture and saw the sector contract by 1.6 percent, with food prices hitting high levels.
IMF: Fiscal consolidation to lift Burundi from economic doldrums (The East African)
The International Monetary Fund (IMF) says growth-centric fiscal consolidation efforts will help lift Burundi from the current economic difficulties that are slowing recovery from the slump occasioned by recent global shocks. Sustained efforts to reduce Bujumbura’s current expenditure, which have mostly been inflated by salaries and subsidies, are expected to narrow its budget deficit as it also strengthens revenue collection to deliver stronger growth this year.
In a statement after a review of Burundi’s performance under the 38-month $271 million Extended Credit Facility (ECF) arrangement approved in July, the lender said the controlled fiscal spending and other macroeconomic reforms will help speed up its growth despite multiple challenges. “Economic growth is expected to slightly accelerate in 2023, driven by the secondary and tertiary sectors, as the Burundian economy continues to recover,” said IMF’s Burundi Mission Chief Mame Astou Diouf.
Multiple challenges are currently derailing economic recovery in Burundi and the cost of living continues to be relatively high compared to most economies across the globe, which have started rebounding from the shocks occasioned by the Ukraine war and pandemic crises.
Diamond processing and exports, increased consumption in wholesale and retail trade and tourism are anticipated to be the main driving forces behind Namibia’s continued economic recovery. The latest forecasts indicate the domestic economy is expected to grow by 3.5% this year. The African Development Bank (AfDB), in its latest Country Focus Report for 2023, said Namibia owes much of its sustained economic resilience to continued political stability, sound macro-economic management and good governance. The continental multilateral bank benchmarked the projected 2023 economic growth against the country’s real GDP, which contracted by 8.1% in 2020 but recovered by 3.5% in 2021, and further by 4.6% in 2022, following the lifting of Covid-19 pandemic-related restrictions.
“Economic growth is gradually recovering but there are strong pressures on domestic inflation as well as the fiscal and external balances that will require the implementation of sustained macroeconomic and social policies to reduce the risk of debt distress, protect vulnerable groups and support growth,” the bank highlighted.
It further pointed out there are downside risks to the projected growth, which includes a high import bill and lower Southern Africa Customs Union (SACU) revenues for Namibia. Being Namibia’s largest market for its external trade, the bank noted South Africa’s slowed economic growth affected SACU revenues for most member countries, as the country struggles with higher global commodity prices emanating from global supply-chain disruptions, rising global inflation and subsequent hikes in international interest rates.
The African Development Bank has recommended that Mali harness its vast natural capital potential to leverage private finance for climate and green growth, a key finding of the Bank’s 2023 Country Focus Report for Mali. The report, “Mobilizing private sector financing for climate and green growth”, was launched on 3 October in Bamako with a workshop chaired by Alousséni Sanou, Minister of Economy and Finance and Finance and Bank Governor for Mali.
Despite shocks associated with sanctions imposed by the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU) and the war in Ukraine, Mali recorded a growth rebound of 3.7% in 2022 (against 3.1% in 2021). This growth was driven by the primary (a 9% increase in cereal production) and secondary (a 4% increase in industrial gold production) sectors.
Private sector financial flows for climate and green growth are weak, amounting to $33.3 million on average from 2019-2020 (8.9% of total climate financing) and are ten times less than public sector finance ($342.9 million, or 91.1%). The report’s findings also show that for every dollar of public financing spent on combating climate change, Mali was able to mobilize just $0.097 in private finance, underscoring the unattractiveness to private investors of climate-related projects.
Kenya horticulture exports rise to 29-month high on demand (The East African)
Kenya in July shipped out the highest volume of horticultural produce in more than two years, boosted by increased demand from export markets. Latest data from the Central Bank of Kenya (CBK) shows exports hit 65,172 tonnes in July, a 19.3 percent jump from 54,604 tonnes in June. It is the highest export volume of fresh fruits, vegetables, and cut flowers since February 2021, when exporters sold 71,685 tonnes.
Fresh vegetables make the largest volume of the exports at 28,259 tonnes followed by fresh fruits (27,339 tonnes) and cut flowers (9,574 tonnes). Avocados are the country’s largest export fruit followed by pineapples, mangoes, raspberries, passion fruits, and lemons. The main export vegetables include chillies, basil, peppermint, fine beans, mixed vegetables, snap peas, and herbs. Kenya meanwhile exports over 65 percent of its cut flowers to the Netherlands while the rest are sold directly to wholesalers and retail outlets such as supermarkets and grocers.
East Africa sets new record in EU coffee exports (The Citizen)
Coffee exports from East Africa to the European Union (EU) have more than doubled in four years, thanks to an agribusiness project supported by the latter. The exports of the bean hit record volumes, earning the bloc 1.1 billion euros last year, up from 488 million euros in 2018. Earnings from avocado exports from the East African Community (EAC) partner states also went up to 112.4 million euros in 2022 from 85.5 million euros in 2018.
This was revealed here on Tuesday during the launch of the second phase of the EU-supported Market Access Upgrade Programme (MARK-UP). The project, to be executed in the next four years, will be implemented at a cost of 40 million euros and is a follow-up to the first phase (2018–2022) for which the EU granted 40 million euros.
DR Congo inaugurates Sakania dry port (The East African)
The Democratic Republic of Congo (DRC) President Felix Tshisekedi on Tuesday inaugurated the Sakania dry port, a Chinese-built megaproject. During his field inspection, Tshisekedi described the dry port of Sakania as a modern one, hoping it could serve as an example for other ports of DRC. Bordering Zambia, the dry port is located in southeastern Haut-Katanga Province, a main border post of DRC and constitutes an important mining channel.
Infrastructure and Public Works Minister Alexis Gisaro Muvuni said the project is expected to propel local socio-economic development and increase connectivity between the DRC and other regional countries.
Chemicals, cosmetics sectors to benefit from AfCFTA (SAnews)
The chemicals, cosmetics, plastics and pharmaceutical sectors are set to get acquainted with the benefits offered under the African Continental Free Trade Area (AfCFTA). This will occur during the virtual workshop on the implementation of the African Continental Free Trade Area (AfCFTA) that will be hosted by the Department of Trade, Industry and Competition (the dtic) on Wednesday, 11 October 2023.
The dtic has already embarked on provincial awareness workshops, which provided a platform for information sharing with the private sector on the benefits offered under the agreement. The workshops were also used to identify South African companies in various provinces, in the targeted sector masterplans and other priority sectors that have the capacity to export to the rest of the continent.
According to the Trade, Industry and Competition Deputy Minister Nomalungelo Gina, “The department will update the sectors on the role expected of them in the implementation of the AfCFTA and essentially obtain challenges that the sectors may be facing in accessing the market in the continent. Obtaining this intelligence will assist the department to unlock the bottlenecks that the sectors may be facing,” Gina said.
‘Sound infrastructure key to improve Africa trade’ (The Chronicle)
Africa must invest more resources in developing sound infrastructure that supports increased production and promotes efficient intra-regional trading. ZimTrade chief executive officer, Mr Allan Majuru, said this in Bulawayo last week where his organisation engaged local companies on best options to unlock access to Africa ahead of the 3rd Intra-Africa Trade Fair (IATF) to be held in Cairo, Egypt between November 9 and 15, 2023. Zimbabwean firms are targeting to forge strong linkages with several potential partners across the continent at the upcoming IATF. The IATF 2023 should result in US$43 billion of trade and investment deals being concluded.
Mr Majuru said they have high hopes that during the IATF 2023, infrastructure development will lead the discussions so that countries will get funding to develop their infrastructure. “One thing we have noticed is that it is difficult to do business as African countries and this is mainly attributed to issues of infrastructure,” he said. “If we look at what we did at the Beitbridge Border Post, it has made that post more effective and more efficient and I think it’s something that as African countries we should do a lot to make sure that our borders are efficient.
“It’s easier for us to export or import from Europe than for me to send goods to Nigeria. So, infrastructure is key for us to improve our trade and I hope as we go for the IATF a lot of emphasis is going to be put to make sure that we get more funding to improve on our infrastructure.” Mr Majuru also emphasised the need for Zimbabwean companies to enhance value-addition in a bid to increase exports for value added goods and services.
Tunis: ECOWAS Parliament’s 2024 Budget To Support Development (Voice of Nigeria)
The Speaker Parliament of the Economic Community of West African States, ECOWAS, Dr. Sidie Mohamed Tunis, said the key components of the 2024 budget of the Community Parliament will be directed towards supporting women and youth development. Dr. Tunis disclosed this while declaring open the Second Extraordinary Session of the fifth Legislature in Winneba, Ghana, which is dedicated to the consideration and adoption of the 2024 Draft Budget of the Community Parliament.
According to Speaker Tunis, the fifth Legislature, under his stewardship, has never wavered in its commitment to fund programs that impact directly on the community citizens, especially women and Youths; even as he assured that a second global summit for women and youths will be held in December.
EAC-EU develop joint roadmap to foster digital transformation in East Africa (EAC)
The East African Community (EAC) and the European Union (EU) have today kicked off the 1st EU-EAC Regional Conference on Digital Transformation in the East African Community, in Arusha, Tanzania. Both sides committed and agreed to foster a human-centric digital transformation in East Africa to utilise digital technologies and innovations for regional integration.
The two-day conference, facilitated by the Digital for Development (D4D) Hub, unites key stakeholders from the EAC region and European partners. This collaborative effort aims to assess the current state of digital transformation in the region and explore opportunities through a “Team Europe” initiative, which includes the EU and its Member States. The D4D Hub serves as an important instrument for the EU and its Member States to support transformational projects across the African continent. This aligns harmoniously with the ambitious goals under the Global Gateway, a new strategy for the EU. The strategy aims to mobilise EUR 300 billion in investment to boost smart, clean, and secure links in digital, energy, and transport sectors and to strengthen health, education, and research systems across the world.
Centering women in trade and peace sectors is a smart move for sustainable development (AU)
African women have been trading before trade agreements and are champions of cross-border trading for generations. Women’s informal cross-border trading has been key in addressing challenges of unemployment, rural- urban migration, poverty, and food insecurity. Women also play a key role in creating community cohesion, sustainable peace, and stability along with the facilitation of trade and peace as an enabler for sustainable development.
The Gender Pre-Forum to the High-Level dialogue convened in Addis Ababa on the 4th October 2023 provided women a collaborative space to discuss various thematic areas on “women’s Role in delivering peace dividends through the implementation of the AfCFTA.” The forum held in depth analysis on the nexus between trade, peace and security and avenues to close gender gaps in advancing the role of women in all the sectors. This includes reviewing existing mechanism and recommending innovative avenues to promote a holistic approach that recognizes the benefits of women empowerment as a strategic move to address the underlying causes of deficits in democracy, governance, peace and security.
The implementation of the African Continental Free Trade Agreement (AfCFTA) is expected to have a positive multiplier effect on enhancing trade and regional integration. The inclusion of women to contribute to, and benefit from the intra-African trade to improve their own livelihoods and by extension of their families and communities calls for gender-responsive actions.
It’s time to fix the problem of Africa’s 500% debt premium (African Arguments)
As finance ministers, officials and NGOs fly to Marrakech for the Annual Meetings of the World Bank and IMF on 9-15 October, they should think carefully about what they can deliver to meet two criteria: ambition that meets the scale of the challenges we face; and decisions that are achievable given the current political capital available. This may sound like an impossible conundrum but African leaders have already laid out a blueprint.
With roughly five years of our current carbon budget remaining to stay within 1.5°C above pre-industrial levels – and with new World Bank data showing 8.6% of the world’s population lives under $2.15 a day (unchanged since 2019) – developing countries, particularly in Africa, need a major injection of low-cost capital. Credible estimates put the external financing needs in the region of $1 trillion a year by 2030.
At the Africa Climate Summit this September, leaders laid out a financial reform agenda calling for a package of measures to meet current challenges. This included unlocking $500 billion a year from the MDB system and unleashing the power of IMF Special Drawing Rights, an international reserve asset, to boost lending power.
AFRICA: with the exception of Egypt and Tunisia other countries will not achieve SDG6 (Afrik 21)
Out of 48 countries assessed in Africa, only Egypt and Tunisia are on track to achieve the goal of universal basic sanitation by 2030. The 2023 report on sustainable development in Africa indicates that, with regard to the sixth sustainable development goal (SDG6), African countries have improved access to safe drinking water services, but there is still a significant disparity between rural and urban areas. Three out of five Africans, or 411 million people, still lack safe drinking water. The report calls on African countries to invest in water, sanitation and hygiene infrastructure and to build capacity for integrated water resource management.
The 2023 report, entitled “Accelerating recovery from the coronavirus pandemic (Covid-19) and the full implementation of the 2030 Agenda for Sustainable Development and the African Union’s Agenda 2063 at all levels”, was published on the sidelines of the 78th General Assembly of the United Nations.
Africa Resilience Forum: African Development Bank head says peace-building in Africa must be an aim of investment decisions (African Business)
Peace and security in Africa must be an aim of investment decisions, the African Development Bank President told delegates at a forum aimed at exploring ways to strengthen the resilience of the continent’s people and states.
“The Africa Resilience Forum is a call to action to work together and make a transition from policy dialogue to investment, and then from investment to impact,” said Dr. Akinwumi Adesina, President of the African Development Bank Group. Mr Adesina was speaking in a video message to participants at the 5th Africa Resilience Forum, which is being held in Abidjan from 3 to 5 October. The theme of this year’s Forum is “Financing Security, Peace and Development for a Resilient Africa”.
“We need to reverse current trends and establish an alliance of partners so that we can adopt a new investment approach that favours peace,” he said. “This will truly change the development-peace-security paradigm on our continent.”
Cotton: Why it matters for a more sustainable future (UNCTAD)
The cotton sector plays a key role in driving economic development, international trade and reducing poverty. Seen above, a farmer picks cotton in the Senegalese town of Velingara. Cotton – one of the world’s leading agricultural commodities – is back in the spotlight, on the occasion of World Cotton Day, marked annually on 7 October. World Cotton Day aims to raise awareness on the importance of global market access for cotton and cotton-related goods from the world’s least developed countries. It also advocates for equitable trade policies and ways to empower developing nations to derive greater benefits from each stage of the cotton value chain.
The 2023 celebration featured a joint event in Vienna, in which UNCTAD was a partner, under the theme “Making cotton fair and sustainable for all, from farm to fashion”. UNCTAD Secretary-General Rebeca Grynspan urged “boosting the development benefits of cotton by growing it more sustainably, levelling the playing field for trade and ensuring farmers receive a fair income.” In 2022, world production of raw cotton was valued at about $50 billion, while global trade in cotton fibre stood at $20 billion, according to UN estimates.
G20 summit spotlights the rail and minerals set to fuel Africa’s international rise (Ventures Africa)
Indeed, the new US and EU-backed Lobito Corridor railway line spotlighted at the G20 summit – connecting the mineral-rich DRC and Zambia to the Angolan coast – notably aims to accelerate the exporting of critical raw materials and the development of regional value chains. Responsible mining in the region, informed by the AU’s African Mining Vision (AMV), will thus play a central role in fueling this mutually beneficial sustainable development while facilitating the cross-border collaboration key for Africa to assume its rightful place on the international stage.
Green Climate Fund: New capital to accelerate investment in global climate action (Green Climate Fund)
Today twenty-five countries pledged support to the Green Climate Fund (GCF) with USD 9.3 billion over the next four years (2024-2027). The Fund urges further contributions from other countries in the coming weeks.
The funding pledges received today enable the GCF to channel new, additional and predictable financial resources to developing countries to support the paradigm shift towards low-emission and climate resilient development pathways – mitigating 1.5 to 2.4 gigatonnes of carbon dioxide equivalent – and enhancing the resilience of up to 900 million people.
“Time is not on our side. And promises made must be promises kept. This is the only way to rebuild the trust needed to confront the climate crisis,” said Selwin Hart, Special Adviser to the UN Secretary-General and Assistant Secretary-General of the Climate Action Team.
Despite some progress in lowering poverty in least developed countries, it remains worrisomely high, hindering progress at all levels, a senior United Nations official told delegates today as the Second Committee (Economic and Financial) took up groups of countries in special situations.
The representative of Armenia underscored “the importance of regional and subregional cooperation and connectivity through trade, transport and people-to-people contacts,” she stressed, announcing a thematic meeting in Yerevan on 20-21 November 2023 titled “Enhancing equitable, affordable and inclusive transport connectivity as a driver for more sustainable and resilient economies in LLDCs [landlocked developing countries.”
Citing trade as another critical issue, Mongolia’s representative noted her country still has much to do to increase its participation in global trade, given its limited integration into regional and global value chains, lack of product and export market diversification and significant reliance on just a few natural resources. Nonetheless, in the last decade, the Ulaanbaatar-based International Think Tank for Landlocked Developing Countries was successfully operationalized, obtaining observer status in the General Assembly.
WTO lowers 2023 trade growth forecast amid global manufacturing slowdown (WTO)
Projections for growth in global merchandise trade in 2023 have been scaled back by WTO economists amid a continued slump that began in the fourth quarter of 2022, according to the latest WTO trade forecast released on 5 October. The volume of world merchandise trade is now expected to grow by 0.8% this year, less than half the 1.7% increase forecasted in April. The 3.3% growth projected for 2024 remains nearly unchanged from the previous estimate.
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President Ramaphosa to officially launch the BMA (SAnews)
President Cyril Ramaphosa will on Thursday preside over the launch of the Border Management Authority (BMA) in Musina, Limpopo. The launch of the BMA follows its formal establishment and assumption of its status as a schedule 3 (A) public entity on 1 April 2023.
The establishment of the BMA means that South Africa now has an integrated border management platform, with a single command and control with which to support the attainment of secure borders, safe travel and trade.
In June 2013, Cabinet made the decision to establish a Border Management Agency under the guidance of the DHA.
It is intended that the BMA will adapt and respond effectively to the challenges, threats and opportunities that exist in the border environment whilst safe-guarding South Africa’s borders and meeting the country’s national, regional and global developmental responsibilities and human rights imperatives. – SAnews.gov.za
Washington, Pretoria ‘Reaffirm and Recommit’ After Public Spat Over Russia (VOA)
The White House says a recent high-level call “reaffirmed the strong partnership between South Africa and the United States” — a move that analysts said Tuesday improves what has long been a tense relationship, marred by a public diplomatic spat and Pretoria’s reluctance to disengage from Russia.
In a readout issued late Monday, national security adviser Jake Sullivan said he spoke by phone to his South African counterpart, Sydney Mufamadi, and that the two “recommitted to advance shared priorities including trade and investment, infrastructure, health, and climate.”
Sullivan also thanked South Africa for hosting an upcoming high-level meeting on the African Growth and Opportunity Act (AGOA), which allows duty-free U.S. market access and expires in 2025. South Africa is one of the program’s top beneficiaries, and congressional Democrats and Republicans had suggested that South Africa be excluded from this year’s forum over the diplomatic dust-up.
See also: Russia and South Africa: The Trade and Investment Dynamics (Russia Briefing News)
Vision 2030 achievable, says Afreximbank vice-president (The Zimbabwean)
“We can succeed in spite of the prevailing headwinds and challenges we currently face, be it climate change, geopolitics, insecurity in parts of our continent or global supply chains disruptions,” he told the annual conference in Victoria Falls of the Chartered Governance and Accountancy Institute in Zimbabwe last week.
He said the journey towards achieving upper middle-class status by 2030 is multifaceted and demands strategic focus across various segments of the economy.
Zimbabwe had undoubtedly faced significant challenges in recent years. However, it was vital to recognise, he said, that within these challenges lay unique opportunities for growth and transformation.
“To navigate this path effectively we must strategically focus on nurturing sectors which hold growth potential,” he said, adding that these sectors included mining, agriculture, tourism and manufacturing. Zimbabwe’s mining industry, despite boasting a remarkable array of minerals, currently contributed only about 12 percent to the annual GDP, largely because it exported them raw with no or little beneficiation and no linkage to regional value chains. “When managed strategically and sustainability these resources have the potential to drive significant economic growth,” he said.
Kenya’s bad debt crisis soars to its highest levels in almost 2 decades (Business Insider Africa)
This level of debt default was last seen in the nation in 2005 when it reached around 30%. Given that bank deposits increased by Sh430 billion in the first half of the year to surpass Sh5 trillion for the first time, banks are thus expected to write down Sh750 billion in their possession.
According to the most recent central bank report, as seen in The Star Kenya, a Kenyan news publication, this was caused by five-year high interest rates. “The ratio of gross non-performing loans (NPLs) to gross loans stood at 15 percent in August 2023 compared to 14.2 percent in August 2022,’’ the Monetary Policy Committee said after its meeting today.
In the manufacturing, mining and quarrying, real estate, and building and construction sectors, there have been rises in non-performing loans (NPLs), according to the Central Bank’s highest body.
Ethiopia continues gradual lifting of fuel subsidies amid rising living costs (ZAWYA)
The Ethiopian government has announced a new fuel retail price adjustment as the gradual lifting of fuel subsidies compounded the soaring cost of living in the country.
The Ethiopia Ministry of Trade and Regional Integration (MoTRI) said Friday that the latest price hike would see gasoline prices rise to ETB77.65 ($1.41) per litre from the previous ETB74.85 ($1.36).
The Ethiopian government blamed the rising global oil prices for its decision to institute the price hikes. Noting that the international fuel price has been showing an increase since the end of June, the ministry said the decision to increase the retail prices is made to reflect the current international fuel market.
Experts, however, argued that while the huge sum of fuel subsidies has been exerting unwanted financial pressure the country’s economy, it plays a significant role in terms of controlling inflation and mitigating the economic impact on the daily life of citizens.
A New $850 Million Route to Speed Up Congo’s Copper Exports (Bloomberg)
An $850 million road project connecting copper and cobalt mines in the Democratic Republic of Congo through Zambia to an East African port will cut more than 150 miles from the existing journey, according to the company building it.
Congo’s President Felix Tshisekedi and Zambia’s Hakainde Hichilema broke ground on Monday at the site where a key part of the route — a 345 meter (1,130 feet) bridge over the Luapula river that separates their countries — will be erected.
Tanzania fuel prices rise in fourth consecutive month (The East African)
Fuel prices in Tanzania have increased for the fourth consecutive month, with diesel taking the biggest hit. The new prices, announced by the Energy and Water Utilities Regulatory Authority (Ewura) on October 3, 2023, will take effect on October 4.
Fuel imported through the Tanga Port will be even more expensive, with petrol at Tsh3,327 ($1.33), diesel at Tsh3,494 ($1.40), and kerosene at Tsh2,989 ($1.20).
Ewura has attributed the price increase to a number of factors, including rising global fuel prices, increased export charges, reduced oil output by Opec+, as well as economic sanctions placed against Russia by western countries.
Reflections on China-Tanzania Relations on the Occasion of the 74th Anniversary of PRC’s Founding (Tanzania Daily News)
China has, over the years, proved to be a reliable partner for Africa in this regard. China has continued to offer the true partnership that Africa wants – sustainable investment and trade.
As of 2022, China has sustained its role as Africa’s largest trading partner for 14 consecutive years. Statistics show that China’s trade with Africa rose from less than 13 billion US dollars in 2000 to about 254 billion US dollars in 2022, a whopping increase of over 19 times. Records of the first five months of 2023 alone show that the total import and export between China and Africa clocked at 113.5 billion US dollars, up by 16.4 percent year on year. China has also remained Africa’s largest investor with over 47 billion US dollars of FDI as of 2022. These increased investment and trade exchanges have greatly helped build African countries’ economies, create more opportunities for new businesses, and fight unemployment in the continent.
ECOWAS climate-smart technologies presented to the public through a side-event at SARA (ECOWAS)
On 3rd October 2023, ECOWAS organized its first side-event at SARA 2023 on a topical theme: climate-smart agriculture and agroecology: opportunities and challenges for West Africa.
It emerged from the various explanations that agriculture is a victim of climate change. It is subject to variations, sometimes extreme, in temperature and rainfall (delayed seasons, heat peaks, shortage or excess of water, altered distribution of rainfall). The effects are direct, for example when plant growth is altered, and indirect, when parasite pressure increases (insect pests, diseases). Agriculture must therefore adapt if it is to continue to fulfil all the functions to which it contributes, in particular feeding humanity. But agriculture is also jointly responsible for climate change. It is responsible for around 12% of greenhouse gas emissions (methane, nitrous oxide, carbon dioxide), or 24% if we consider changes in land use linked to forestry and the agricultural frontiers that follow. These emissions are due to poorly used inputs, when fossil fuels are used, or to some intensive livestock farming or flooded rice cultivation practices.
Agriculture can also become one of the solutions to climate change by helping to mitigate it. With appropriate practices, we can reduce agricultural greenhouse gas emissions and store carbon in the soil and biomass (plants, living soil organisms, etc.).
Unlocking the Potential of SMEs for Regional Industrial Development (SADC)
The Southern African Development Community (SADC) has embarked on a crucial journey towards fostering the growth and competitiveness of Small and Medium Enterprises (SMEs) within the region. This initiative took center stage during the recently commenced consultative workshop held in Lusaka, Zambia, from the 3rd to the 6th of October 2023. The primary objective of this three-day workshop is to gather insights and inputs on the draft SADC SME Strategy, a significant milestone in the pursuit of regional industrial development.
The foundation for the SADC SME Strategy was laid in 2015 when the SADC Industrialisation Strategy and Roadmap was adopted. This visionary document emphasised the importance of developing an SME strategy to facilitate the elevation of SMEs towards international competitiveness, thereby contributing to the broader industrialisation goals of the region. This recognition was reaffirmed in the SADC Regional Indicative Strategic Development Plan (RISDP) 2020-2030, reflecting the collective vision of SADC Member States.
We support Africa in achieving Sustainable Development Goals: EAPD’s Secretary-General (Daily News Egypt)
The Egyptian Agency of Partnership for Development (EAPD) is committed to supporting African countries in their political, economic, and social development, said its Secretary-General Ashraf Ibrahim.
Ibrahim made these remarks during his participation in the monthly meeting of African ambassadors accredited in Cairo, where he presented the Agency’s activities in Africa since its establishment in 2014, as well as the work of the African Fund for Technical Cooperation with Africa since its inception in 1985.
The Secretary-General also announced the launch of the Egyptian-African Health Alliance, which reflects Egypt’s efforts to enhance South-South cooperation and share its expertise in the health sector, which is a vital pillar for achieving growth.
Ibrahim said that the alliance will support the African countries in providing health and pharmaceutical services to their people, according to plans and programs based on the sustainable development pillars of the Egyptian state, in a way that benefits all parties and countries of the continent.
British International Investment Partners Access Bank On US$60m Trade Finance Facility Across Africa (THEWILL NEWS MEDIA)
British International Investment (BII), the UK’s Development Finance Institution (DFI) and impact investor, has announced a $60 million trade finance facility for Access Bank Plc in Nigeria and five of its pan-African subsidiaries. The parties, in a statement, said this will strengthen import and export capabilities amongst local businesses and plug the foreign currency supply gap.
According to the parties, the programme supports Access Bank’s strategy to enable continental trade and deepens BII’s commitment to bolstering financing environments in fragile economies. BII estimates the loan programme will stimulate African trade volumes by US$90 million. The agreement reinforces BII’s ongoing relationship with Nigeria’s largest commercial bank by assets and facilitates the provision of systemic liquidity during a period characterised by a challenging macroeconomic environment.
Between 80% and 90% of world trade is estimated to rely on the availability of trade credit, according to the World Trade Organization. Prior to the COVID-19 pandemic, that financing gap stood at US$82 billion in Africa, and it is increasing.
Recognising the positive ripple effects of robust trade flows on economies and livelihoods, Access Bank is aiming to provide 15% of trade finance across Africa, by growing the trade books of its subsidiaries.
Africa countries told to merge commodity exchanges (New Business Ethiopia)
Linking and merging Ethiopian Commodity Exchange (ECX) with the East African Commodity Exchange (EAX), African countries are advised to introduce a single regional agricultural commodity exchange.
The creation of linkages between the two major commodity exchanges will facilitate the implementation of the African Continental Free Trade Area (AfCFTA), according to Professor Issouf Soumare, who presented a paper at a sub-regional meetings of senior government officials and experts in Bujumbura, Burundi last week.
“A single regional commodity exchange where all commodities produced in the region could be traded represent a great opportunity to meet the main objective of AfCFTA, which are fostering regional integration, eliminating tariff and non-tariff barriers on commodities, as well as Improving competitivity and quality,” he said.
He stated that Africa specifically the east Africa region has significant and various agricultural commodities which can be traded on a regional commodity exchange. Somalia, Comoros, Burundi, and Ethiopia are the top 4 countries in the region with a high share of agriculture in GDP. In these 4 countries, agriculture represents more than 30% of the GDP, which the professor argued can be taken as a good opportunity to formalize and deepen intra-Africa agriculture products trading between African countries by introducing a regional commodity exchange and benefit from the AfCFTA.
Africa must come together to make AfCFTA succeed (GhanaWeb)
The Agbogbomefia of Asogli State, Togbe Afede XIV, has called on all African leaders to come together to harness the benefits of the African Continental Free Trade Area (AfCFTA). He said the free trade area needs the unity of the continent to realise its full potential.
Speaking at the Made in Ghana Awards night on September 30, 2023, Togbe Afede XIV said, “AfCFTA needs the unity of this continent to realise its dream so even if we can’t come together politically, we can do so economically to harness the full benefit of the agreement.”
African Union Executive Council Hold a Meeting on The Second Decade of Agenda 2063 (AU)
Addressing the Ministerial opening, Dr. Monique Nsanzabaganwa, Deputy Chairperson of the African Union Commission outlined the seven Moonshots (ambitions) in the Second Ten Year Implementation Plan (STYIP), which are aligned to each of the seven Aspirations of Agenda 2063, such as: H.E. Dhoihir Dhoulkamal, Minister of Foreign Affairs and International Cooperation of Comoros and Chairperson of the Executive Council underscored that Agenda 2063 remains the master plan for African development programme, achieving its development objectives, and ultimately, transforming the Continent into an economic power.
To Avert a “Lost Decade,” Africa Must Urgently Achieve Stability, Increase Growth, and Create Jobs (World Bank)
Sub-Saharan Africa’s economic outlook remains bleak amid an elusive growth recovery. According to the latest World Bank Africa’s Pulse report, rising instability, weak growth in the region’s largest economies, and lingering uncertainty in the global economy are dragging down growth prospects in the region.
Economic growth in Sub-Saharan Africa is forecast to decelerate to 2.5% in 2023, from 3.6% in 2022.
In per capita terms, growth in Sub-Saharan Africa has not increased since 2015. In fact, the region is projected to contract at an annual average rate per capita of 0.1% over 2015-2025, thus potentially marking a lost decade of growth in the aftermath of the 2014-15 plunge in commodity prices.
Africa Partnership Conference (UNCTAD)
Africa has three massive things going for it right now. The first, is growing intra-Africa trade thanks to the African Free Continental Trade Area – which will provide a boost to high-value added manufacturing and services in the continent. The second factor is demographics – Africa has the biggest youth population in the world; youth mean entrepreneurship, means innovation, and means growing consumer markets. And third, lastly, Africa is extremely rich in the critical minerals that will power the renewable energy transition, such as phosphate rock, cobalt, manganese, and platinum-group metals. This is a massive opportunity for investment, structural transformation, and growth for the continent.
The UN Conference on Trade and Development (UNCTAD) has warned of a stalling global economy, with growth slowing in most regions from last year and only a few countries bucking the trend. In its Trade and Development Report 2023, the organization calls for a change in policy direction, including by leading central banks, and accompanying institutional reforms promised during the COVID-19 crisis to avert a lost decade.
UNCTAD Secretary-General Rebeca Grynspan said: “To safeguard the world economy from future systemic crises, we must avoid the policy mistakes of the past and embrace a positive reform agenda.” “We need a balanced policy mix of fiscal, monetary and supply-side measures to achieve financial sustainability, boost productive investment and create better jobs. Regulation needs to address the deepening asymmetries of the international trading and financial system.”
DDG Paugam: Trade is becoming more political, more sustainable, more traceable (WTO)
Strengthening the multilateral trading system as embodied in the WTO is the best way to confront the challenges of increasingly fragmented global trade, Deputy Director-General Jean-Marie Paugam said on 3 October. Speaking in Dijon, France, at the Vine and Wine World Trade Forum, DDG Paugam said a new trade narrative based on geopolitics, climate and sustainability, and quality-related regulations is starting to take root, leading to some trade fragmentation. The “number one condition to confront these challenges is more of the multilateral trading system, not less,” he declared.
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South Africa mulls trade options as bird flu hits poultry supply (Bloomberg)
South Africa’s government is assessing trade measures and the possibility of vaccination to ease shortages of poultry products and contain the spread of avian flu in the country.
Agriculture, Land Reform and Rural Development Minister Thoko Didiza will start work on improving the efficiency of issuing import permits for egg products, according to a statement emailed on Monday. On the broiler side, Didiza and Trade and Industry Minister Ebrahim Patel are assessing some trade instruments to ease the supply of chicken meat.
Patel reintroduced anti-dumping duties on bone-in chicken portions from Brazil, Ireland, Poland, Spain and Denmark in August to protect the local poultry industry. Groups including the opposition Democratic Alliance have called on the government to temporarily suspend tariffs on chicken to help address the projected supply shortfall and cushion consumers against price hikes of all poultry products.
Tanzania on course to become regional digital hub (Tanzania Daily News)
Tanzania is poised to become a digital hub within the East Africa Community (EAC) following the inauguration of the Centre of Competence in Digital Education (C-CoDE). Hosted by the Nelson Mandela African Institution of Science and Technology (NM-AIST), the centre is established within the framework of the Excellence in Africa initiative, collaboration between Mohamed VI Polytechnic University (UM6P) of Morocco and Ecole Polytechnique Fédérale de Lausanne (EPFL) of Switzerland.
It is specifically designed to support the transformation of training and educational practices through digital tools and technologies in Tanzania and the EAC region.
Speaking during the centre’s inauguration on Monday, the Director of Science, Technology and Innovation at the Ministry of Science and Technology, Professor Ladslaus Mnyone underscored the role of the facility in advancing education provision in Tanzania. He said that embracing technologies and coping with rapid technological advancements had significant impact on both professional and personal experiences.
Punitive domestic tariffs threaten African trade (The Business & Financial Times)
Tariff and non-tariff barriers in the country remain a real threat to the vision of a liberalised African trade market under the African Continental Free Trade Area (AfCFTA). This is despite the fact that Ghana’s legal framework supports free trade, says a study that revealed tariff barriers are imposed as taxes and duties on imports – while non-tariff barriers (NTBs) encompass protectionist policies against foreign trade. Combined, it said, they threaten the idea of a free continental free trade market.
Under the AFCFTA’s mandate for gradually reducing tariffs and eliminating non-tariff barriers, Ghana is expected to liberalise tariffs over ten years and remove non-tariff barriers. “Removing these restrictions will significantly increase trade within African countries,” says the study dubbed— Situational analysis of Ghana’s AFCFTA preparedness: a review of the legal, policy and regulatory Framework for implementation of the African Continental Free Trade Agreement (AFCFTA in Ghana).
Produced by Ishmael Yamson & Associates and Sam Okudzeto & Associates on behalf of the University of Professional Studies-Accra (UPSA) Law School, the report underscores the necessity of addressing certain challenges within the domestic legal framework to enhance the AfCFTA’s implementation. These challenges encompass the absence of harmonisation in laws, regulations and standards across the continent. The report suggests the country should strive to align its laws with those of other African nations to facilitate the smooth movement of goods and services across borders.
Horticultural sector a critical contributor to Ghana’s economic growth-Netherlands Ambassador (News Ghana)
Ghana Vegetables, in collaboration with the Horticulture Business Platform, has organized the Fruit and Vegetables Fair 2023 under the theme “Harnessing the gains of the horticulture sector, with a focus on AFCFTA.”
This year’s Ghana Fruit and Vegetable Fair held at the Department of Parks and Gardens attracted producers, agro-input distributors, transporters, financial institutions, cold storage service providers, exporters, importers, insurance service providers, and aggregators of fresh fruits and vegetables in a grand style. The event provided an exceptional opportunity for these stakeholders to network, exchange ideas, and explore potential collaborations that can help drive the growth and development of the fruit and vegetable industry in Ghana.
Speaking at the event the Netherlands Ambassador to Ghana, H.E. Jeroen Verheul, highlighted the long-standing partnership between the Netherlands and Ghanaian horticultural farmers and entrepreneurs. Emphasizing that the horticultural sector is a crucial contributor to Ghana’s economic growth. There are three key reasons to strengthen the horticulture partnership: promoting economic growth, improving diets, and creating more job opportunities.
Related: We remain committed to a quick turnaround of economy – Ghana Association of Banks (MyJoyOnline.com)
Nigeria, Saudi Arabia maintain fruitful bilateral coordination: Envoy (Arab News)
Nigeria and Saudi Arabia have maintained a fruitful mechanism of bilateral consultations and coordination between them since the establishment of formal diplomatic relations in 1961, according to Nigerian ambassador to Saudi Arabia, Yahaya Lawal.
Speaking at Nigeria’s 63rd independence day anniversary function in Riyadh, the envoy on Monday said: “I am happy to inform you that for the past six decades, our bilateral cooperation, which was initially Hajj-centric, has witnessed diversification to cover a number of mutually beneficial areas. I am pleased to note that a large number of our compatriots and professionals, including valued Nigerian football players, are actively working and contributing silently to the strengthening of these relations in various fields. This is expected to receive an additional boost when more than a dozen agreements and MoUs currently under negotiation within the framework of the Nigeria-Saudi Joint Commission are concluded,” the envoy said.
Nigeria, like the Kingdom under its “Vision 2030,” was diversifying its economy away from oil dependence by focussing on agriculture, mining, the digital economy and tourism to promote sustainable development, he said.
“Our country is also cleansing and liberalizing the business environment to attract more domestic and Foreign Direct Investments. We have introduced in this regard a number of programs, which include a new National Digital Economic Policy and Strategy, the establishment of Special Agro Industrial Processing Zones, the Agriculture for Food and Jobs Programme and the Petroleum Industry Act, which seeks to transform and open up the oil and gas sector,” he said.
Africa’s economy could rival China or India, says WTO chief Ngozi Okonjo-Iweala (GZERO Media)
The African continent has a population of 1.4 billion people, but it imports more than 90% of its medicines and 90% of its vaccines. WTO Director General Ngozi Okonjo-Iweala says the time has come to open up the continent to globalization and encourage businesses to invest in African countries.
On GZERO World with Ian Bremmer, Okonjo-Iweala makes the case for decentralizing and diversifying global trade to open up new markets, bring Global South countries into the mainstream of the world economy, and reduce reliance on any one country for crucial goods and services.
Africa hasn’t yet globalized, but when it does fully integrate into the world economy, it could create a domestic market of over a billion people that rivals that of China and India. “Africa has about 3% of world trade, and that’s too small,” Okonjo-Iweala says. “When, not if, that experiment really gets going of Africans integrating better with themselves and trading, that is automatically very attractive for trade for the world.”
CABI shares expertise at 4th International Phytosanitary Conference 2023 held in Kenya (Krishak Jagat)
CABI has shared its expertise in helping countries achieve robust Sanitary and Phytosanitary (SPS) systems to sustainably improve livelihoods and strengthen food security at the 4th International Phytosanitary Conference 2023 held in Kenya. Dr Morris Akiri, Senior Regional Director, Africa, attended the event which was hosted by the Kenya Plant Health Inspectorate Service (KEPHIS) at its headquarters in Nairobi.
Dr Akiri gave opening remarks at the Conference – themed “Enhancing Phytosanitary Systems for Trade Facilitation, Climate Smart Agriculture and Sustainable Livelihoods” – and highlighted how CABI is working with its 17 Member Countries in Africa to enhance SPS measures along the food value chain.
Professor Theophilus M. Mutui, Managing Director of KEPHIS, emphasized that “the implementation of phytosanitary measures aimed at mitigating against the challenge of plant pests is key to Kenya’s economy.”
CABI’s Dr Ivan Rwomushana, Senior Scientist, Invasive Species Management in his keynote address at the event highlighted the range of digital tools within the PlantwisePlus Toolkit that can be used for horizon scanning and insight reporting when monitoring and managing phytosanitary risks.
Related: An annual loss of $5 billion in Africa’s food market has been attributed to an insect (Business Insider Africa)
Stakeholders in Africa Discussing Ways to Expedite Digital Transformation in Continent (ENA)
The International Telecommunication Union’s (ITU) regional development forum for Africa opened in Addis Ababa today with a view to accelerating the implementation of the Sustainable Development Goals (SDGs) in the continent through digital transformation. The Forum will take place for the coming three days under the theme “Digital transformation for a sustainable and equitable digital future: Accelerating the implementation of the SDGs in Africa through digital transformation”.
Speaking on the opening event, ITU Department Partnerships for Digital Development Chief, Cosmas Zavazava said the forum is a platform for views exchange and matchmaking among stakeholders.
“The regional development forum is one of the key forums or events that we hold and the idea is to bring stakeholders together to brainstorm, to exchange ideas. But most importantly, this regional development forum is unique, unique in the sense that we are going to engage in a matchmaking exercise.” The aim is to convert pledges into concrete commitments that will result in the implementation of concrete impactful projects based on the priorities adopted and contained in the Kigali Action Plan, it was indicated.
The Kigali Action Plan is a comprehensive package that will promote the equitable and sustainable development of telecommunication/ICT networks and services, it was learned. We would like to make sure the 36.1 billion USD pledged to us is implemented for concrete works, he said.
African ministers call for new financing for continent’s development agenda (Anadolu Ajansı)
African ministers and officials of the African Union called for new sources of financing on Monday to supplement member states’ contributions towards the continent’s long-term development activities. They spoke at discussions on financing of the African Union’s Agenda 2063 and its flagship projects during a retreat of the African Union Executive Council in Rwanda’s capital Kigali. The three-day ministerial retreat was convened to discuss the second 10-year plan of Agenda 2063 spanning from 2024 to 2033.
“In order to achieve the progress we want, we must ensure we have the resources necessary to implement the programs of our agenda. The matters of resource mobilization and effective deployment of resources are key,” said Naledi Pandor, South Africa’s international relations and cooperation minister.
Noting that financing has proven to be challenging, Pandor called for an effective domestic resource mobilization strategy and better utilization of the private sector, since it holds massive capital.
The key barriers to financing of the continental agenda in the first 10 years of implementation highlighted include illicit financial flows, high debt levels and inefficiency of tax administrations to collect adequate revenue resources, according to officials.
Former president Donald Trump Administration’s failed policies towards Africa predicated the summit organizers to move the three-day event to Africa. The 5th African Global Economic Development Summit (AGED) will be held in Addis Ababa, Ethiopia October 25th through 27th, 2023. The theme of the 5th AGED Summit is: “Transforming Africa through the industrialization of its economies.” The summit is designed to discover investment and trade opportunities throughout the continent that not only uniquely diversify economies, but are also transparent, well packaged and ready for immediate take off.
Observations throughout the world make it clear that climate change is occurring, and rigorous scientific research demonstrates that the greenhouse gases emitted by human activities are the primary driver.
This year’s Summit will primarily focus on infrastructure development, agriculture, biofuels, renewable energy, and climate change. Africa is abundant in resources and is home to 60% of the world’s arable land, which provides African countries the opportunity to grow feedstocks for renewable fuels and biofuel. Thus, helping to reduce carbon emissions from the transportation industries through intercrop ecosystems and agroforestry techniques that also ensure food security, jobs, and sustainability throughout the continent.
On the third day of the Agriculture and Animal Resources Exhibition (SARA, 1st October 2023), national and international partners were invited to take part in discussions at the inaugural conference on the central theme of “African agriculture in the face of internal and external shocks: structural innovations to improve agricultural sectors and guarantee food sovereignty”.
After outlining the various shocks facing African populations, the Director General of the International Institute of Tropical Agriculture (IITA), Dr Siméon Ehui, focused on the impact of climate change, which is making African agriculture more fragile. He called on stakeholders and decision-makers to prioritize the use of drought-tolerant agricultural technologies adapted to conditions of climate variability. He also called for rapid response mechanisms to be put in place to deal with shocks when they occur.
Consultations on the meaningful engagement of the youth to advance democracy, human rights and governance in Africa have kicked off in Addis Ababa, Ethiopia as a pre-forum leading to the 12th High Level Dialogue. Youth from across the continent will review existing modalities and propose recommendations that leverage and foster meaningful participation of young people in delivering peace dividends through the implementation of the African Continental Free Trade Area (AfCFTA).
The consultations will explore the role of African youth in advancing actions aligned to the nexus between the economic development, democracy, governance and peace and security. Amb Salah Hammad, Acting Head AGA-APSA Secretariat, at the African Union Commission, Department of Political Affairs, Peace, and Security observes that the youth discussions are timely particularly in the current challenging context of a wave of democratic governance reversals, military takeovers and Unconstitutional Changes of Government (UCGs) and in considering the critical role of the youth to drive Africa’s sustainable development agenda.
He stated, “the youth’s voices and perspectives are important to the African Union. Through hearing young people’s perspectives, we will get to listen, understand and act in their best interest. We can jointly work with youth to identify key roles and facilitate their meaningful participation and inclusion in democratic governance, peace and security. Inclusion is key as it provides an enabling environment for AfCFTA implementation, but youth also must also play their part for constructive engagement by developing and sharpening their skills through training to take advantage of opportunities that will be brought forth by the continental free trade agreement.”
12th High-level Dialogue on Human Rights, Democracy and Governance in Africa
General Assembly: Second Committee (Economic and Financial) (United Nations)
GLADYS MOKHAWA (Botswana), speaking on behalf of the Group of Landlocked Developing Countries, pointed to the lingering impacts of the pandemic, geopolitical tensions, inflation and commodity price hikes on the ability of her bloc to achieve socioeconomic development, highlighting in this regard the rising inflation rate from 6.2 per cent in 2015 to 20.5 per cent in 2022. Ahead of the third United Nations Conference on Landlocked Developing Countries, slated for June 2024 in Kigali, she urged seizing momentum to reaffirm the commitment to support the group of 32 States, representing 570 million people, with recovering from the effects of global crises and leapfrogging their economies towards 2030. In this regard, she asked the Committee’s assistance with the development of an ambitious new programme of action for landlocked developing countries with quantifiable goals, targets, commitments and deliverables.
Ahead of the Kigali summit, she emphasized the importance of international trade for the economic development of landlocked developing countries — which relies heavily on efficient transit transport systems — and called for special support to bridge the financing gap in building transit-transport infrastructure. Highlighting the need for improved access to energy and ICT, which are relatively low in landlocked developing countries, she stressed the importance of support for those States’ participation in e-commerce and digital business platforms, while requesting assistance in technology and capacity-building for modern technologies like artificial intelligence, machine learning and big data. Noting that landlocked developing countries need more support in the form of ODA, FDI, debt relief, migrant remittances, and collaboration with global and regional development banks, she announced that the preparatory process for the Kigali summit is in full swing.
MARTHINUS CHRISTOFFEL JOHANNES VAN SCHALKWYK (South Africa), aligning himself with the Group of 77 and the Africa Group, called for the necessary will and regaining the momentum towards the achievement of the 2030 Agenda. “Significant work is required in the provisioning and mobilizing of predictable, at-scale, additional and accessible financial resources for the implementation of the SDGs,” he said, reiterating that ensuring sustainable development requires collective action by all countries, sectors and actors. There is no part of the world that is not feeling the dramatic changes to climate and extreme weather events. “Africa, least responsible for the climate crisis, also finds itself at the epicentre of the worst impacts, experiencing droughts, floods and cyclones,” he stressed, appealing to advance all three pillars of the Paris Agreement — mitigation, adaptation and support. “Now more than ever, the central role of the United Nations is required to provide much needed leadership in our collective multilateral effort for a sustainable recovery,” he concluded.
Related: Sustainable Development Goals’ Current Status (Welthungerhilfe.de)
Geoeconomic Fragmentation Threatens Food Security and Clean Energy Transition (IMF)
Russia’s invasion of Ukraine in 2022 fragmented major commodity markets. Countries have since restricted trade in commodities, with a more than twofold increase in new policy measures relative to 2021. Commodities, particularly minerals critical for the green transition and some highly traded agricultural goods, are especially vulnerable in the event of more severe geoeconomic fragmentation, as we show in a chapter of our latest World Economic Outlook chapter.
Further fragmentation could lead to turmoil in commodity markets, causing large price swings. While long-term global economic losses of about 0.3 percent would remain relatively modest due to offsetting effects in net producing and consuming countries, low-income and other vulnerable countries would bear the brunt. In our illustrative simulations, they could face long-term gross domestic product losses of 1.2. percent on average, largely stemming from disruptions in agricultural imports.
For some countries, losses could exceed 2 percent. This would exacerbate food security concerns, as low-income countries are particularly reliant on food imports to feed their population.
The after-effects of the COVID-19 pandemic and the impacts of Russia’s war of aggression against Ukraine are an opportunity for governments to undertake the structural policy reforms necessary for strong and sustainable growth and more competitive, innovative and resilient economies in the medium and long term, according to the OECD’s Going for Growth 2023.
Unprecedented policy responses to recent shocks have helped protect lives and livelihoods during this turmoil, but long-term and long-standing challenges remain to be addressed. Weak productivity growth and declining business dynamism remain prevalent in many OECD countries. Structural problems in labour markets still prevail and skill mismatches continue to hinder effective resource utilisation. Moreover, while its urgency is widely recognised, environmental sustainability has often remained absent from most growth strategies.
The Going for Growth policy report analyses the structural reform priorities that can help economies bounce back from the shocks and offers policy makers country-specific advice to create the conditions for a decisive transition.
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SA agriculture grows sector at international show (Freight News)
South Africa is participating in the sixth International Exhibition of Agriculture and Animal Resources being held in Abidjan, Côte d’Ivoire. Known as the Salon International de l’agriculture et des Resources Animales (Sara), the bi-annual event brings together the agricultural expertise of Ivory Coast, the sub-region and the world. Sara aims to promote agriculture products, livestock farming, fishing, forestry, and the agro-food industry to an international audience.
Agriculture, Land Reform and Rural Development Deputy Minister, Mcebisi Skwatsha, is attending the event, which opened on Friday last week and will run until next Sunday. The minister’s department said the event was a pragmatic implementation of the African Continental Free Trade Area through inter-regional and inter-country value chain development.
Govt has N$53 billion import cover (The Namibian)
Namibia, a net importer of basic commodities, has international reserves of N$53 billion, which is equivalent to an import cover of 5,1 months. This is mainly due to foreign direct investment (FDI) flows from the disposal of equity by resident enterprises in the manufacturing sector, capital inflows from African Development Bank (AfDB) and KfW loans, as well as net foreign currency placement by commercial banks.
According to a statement issued by Bank of Namibia (BoN) spokesperson Kazembire Zemburuka, the country recorded a notable reduction in the current account deficit during the second quarter of 2023, primarily driven by improvements in both the secondary income and the merchandise trade balance.
“The current account deficit shrank to 4,4% of Gross Domestic Product (GDP), from 11,6% registered in the corresponding quarter of 2022. “This positive development was mainly attributed to a stronger merchandise trade balance, supported by increased receipts from the secondary income account, driven by a substantial rise in Southern African Customs Union receipts and reduced outflows in the services account,” Zemburuka said.
IMF Staff Completes 2023 Article IV Mission to Namibia (IMF)
“On the back of sustained mining growth and recovery in tourism, real GDP growth reached 4.6 percent in 2022 and economic activity is expected to surpass the pre-pandemic level in 2023 with a growth of 3.2 percent. Nevertheless, unemployment remains elevated at 21 percent, and is particularly acute among the youth. For 2024 and the medium-term, growth path is expected to stabilize at just below 3 percent.
“The current account deficit widened in 2022 as the spike in fuel prices inflated the import bill. In 2023, the current account is expected to narrow reflecting the easing of fuel prices relative to 2022 and the recovery in the SACU revenues. International reserves are expected to increase moderately with external financing needs largely covered by foreign direct investment in mining and the ongoing oil and gas exploration.
“Going forward, implementing the authorities’ fiscal consolidation strategy is pivotal to preserve debt sustainability and protect against the volatility of SACU revenues, which represent a significant contribution to the budget.
Kenya, Uganda tighten controls of mining sector (The East African)
Kenya is following in the footsteps of Uganda in enacting legislation to reform its nascent mining industry to improve the state’s control and oversight of the critical industry. Uganda passed its Mining and Minerals Act in October last year and Kenyan lawmakers are considering changes to the Mining Act of 2016.
The Mining (Amendment) Bill that was tabled in parliament this September proposes establishment of a Mining Regulatory Authority to replace the current Mining Rights Board, and a Mining Rights Tribunal to deal with disputes resolution. The Mining Regulatory Authority – as opposed to its predecessor whose role was limited to advisory – will control the “exploration, extraction, production, processing, refining, transportation, storage exportation, importation and sale of minerals.”
According to the National Assembly’s Environment, Forestry, and Mining committee, the amendment will help improve efficiency in overseeing the mining industry by separating the functions of policy formulation from administration and dispute resolution.
Gov’t moves to build local expertise on critical minerals (The Business & Financial Times)
The Deputy Minister of Lands and Natural Resources responsible for Mines, George Mireku Duker, has instructed two agencies under the ministry to collaborate with the University of Mines and Technology (UMaT) to design educational programmes related to extraction, processing and governance of critical minerals.
The two agencies – the Minerals Income and Investment Fund (MIIF) and Minerals Commission (MinCom) – are to immediately work with UMaT on this to develop the framework for redesigning and strengthening the existing curricula. To this end, Mr. Mireku Duker specifically also asked that MIIF and MinCom take deliberate steps to provide scholarships to technical staff and some students for the study. The intention, he added, is to build regulatory capacity and local graduates to match the sophisticated interests of companies that will exploit these minerals in the future.
“We shouldn’t start mining lithium then a company goes to hire a metallurgist from country ‘A’ with the excuse of Ghana not having qualified personnel,” he said. The Deputy Minister, who was speaking at a stakeholder forum organised by MIIF in Accra, added that there is more to be done. The latest directive reflects concerns to address the growing importance of critical minerals in the context of energy transition, with an emphasis on education and collaboration between government entities and educational institutions to enhance expertise and ensure responsible resource management.
The critical minerals that the country continues to make discoveries of are likely to include those used in renewable energy technologies, such as lithium, bauxite and iron among others.
UN tips Kenya on jobs in solar power industry (The East African)
A bigger investment in skills development in solar market technology could help create jobs in countries such as Kenya through partnerships with foreign companies that control the industry, a United Nations agency has suggested. The UN Conference on Trade and Development (UNCTAD) has asked authorities to develop skills that will enable the youth to get jobs and increase participation of domestic companies in solar panel supply chains.
“Growth in the solar panel market provides a vast opportunity for the economy through private sector development and job creation. However, much of the market is held by internationally owned companies,” UNCTAD said in a new report. ”Most domestic companies operate in services, offering project-development services, consultancy, and after-sales services.”
Small traders took highest share of IFC’s Sh110bn funding to Kenya (The Star)
Small traders received the lion’s share of $754.8 million (Sh110 billion) disbursed to Kenya by the International Finance Corporation (IFC) in a year to June 30. This was through onward lending arrangements between the World Bank’s investment arm to ease credit to the sector perceived risky by commercial lenders.
IFC’s vice president for Africa Sergio Pimenta who has been in the country since last week told this writer that the corporation will continue to focus on sectors funded in the last financial year with more emphasis on climate financing.
“IFC provided record financing in Africa in fiscal year 2023, helping to accelerate the continent’s energy transition, develop greener manufacturing and increase intra-Africa trade,’’ Pimenta said. He added that the lender is keen to continue strengthening smaller businesses and boost local food production, including in more challenging fragile and conflict-affected regions.
Tanzania mulls Plan B for its SGR project as Turkish firm derailed (The East African)
Finance ministers from Tanzania and Zanzibar have embarked on fundraising for the standard gauge railway (SGR) project in the wake of the main contractor, Turkish firm Yapi Merkezi, showing signs of financial distress. This has raised concerns of further delays on the first three phases of the 2,100-km railway seen as crucial to place Tanzania in position as a key trade corridor for East and Central Africa.
Tanzania’s Finance Minister Mwigulu Nchemba was on a European tour over the past fortnight, during which he held talks with officials in several countries regarding their possible involvement in the SGR project, whose estimated total cost upon completion is $10.4 billion. Zanzibar Finance Minister Saada Mkuya managed to canvass a similar commitment from the African Development Bank (AfDB), which is willing to provide over $3 billion for the project.
Nigeria’s economic survival depends on non-oil sector – NEPC (Businessday NG)
With the ever-increasing challenges bedeviling oil production and distribution across the globe, Ezra Yakusak, chief executive officer, Nigerian Export Promotion Council of (NEPC, has said that Nigeria’s survival depended on non-oil sector of the economy. Yakusak made the observation Thursday in Aba, Abia State, at one-day capacity building workshop on ‘Accessing International Market, through Export Trade Houses’ organised by Abia State coordinating office of the Council.
Using the automobile and energy sectors for example, the NEPC’s chief executive officer noted that the world was gradually moving away from oil, as there is now electric cars in the automobile sector, solar power in the energy sector, among others, an indication that revenue from oil will no longer sustain any nation in the nearest future. Amaechi Okechukwu, head, Product and Market, Abia State coordinating office of NEPC, avowed that with the takeoff of the African Continental Free Trade Area (AfCFTA) that Nigeria, as the giant of Africa, was positioned to lead in the advocacy for increased intra-African trade.
Okechukwu, while presenting a paper titled ‘Understanding the concept of Export Trade House,’ affirmed that a Trade House was a veritable platform to increase the visibility of made-in-Nigeria products, boost export and increase forex inflow into the Nigerian economy.
Kenya joins pan-African platform that allows payments in local currencies (ZAWYA)
Kenya has joined the Pan African Payments and Settlement System (PAPSS), allowing companies in the East African nation to transact with counterparts in other countries on the continent using their local currencies. The Central Bank of Kenya signed the agreement that a cabinet minister said will be a big boost for African free trade as it will lower foreign exchange expenses associated with needing to use the US dollar or euros to make transactions.
“The Central Bank of Kenya has signed the instruments that have finally seen Kenya join the Pan African Payments and Settlement System (PAPSS),” Trade Cabinet Secretary Moses Kuria said on messaging service X, formerly known as Twitter. “This means that Kenyan companies can trade with their peers from other African Member States using our local Currencies, a major boost for the African Continental Free Trade Area (AfCFTA).”
AfCFTA: Public servants pose biggest threat to SMEs’ competitiveness (The Business & Financial Times)
Public servants – civil servants and government appointees – instead of playing a facilitation role for small- and medium-scale enterprises (SMEs) are competing with them and hijacking their opportunities, says the Centre for Regional Integration in Africa (CRIA).
It said it has identified public servants with the mandate of implementing government policies and providing timely and satisfactory services to all stakeholders, especially SMEs, to harness benefits of the African Continental Free Trade Area (AfCFTA) as one of the barriers to competitiveness of small businesses in Ghana and many other economies on the continent.
Chairman of CRIA, Nana Owusu-Afari, explained that public servants as well as government appointees in some countries, including Ghana, either have their own businesses or are fronting as agents to some private companies; hence diverting opportunities and support meant for SMEs to the wrong places.
Related: Creating Export Expansion Opportunities For SMEs To Boost Forex (Leadership News)
Capitalise on opportunities to grow businesses – AfCFTA to SMEs (Graphic Online)
Small and Medium Scale Enterprises (SMEs) have been encouraged to take advantage of opportunities that the African Continental Free Trade Area (AfCFTA) offers to create a buoyant economy for Africa. This was because SMEs remained the backbone of African economies and that they owned 90 per cent of enterprises and contributed around 80 per cent of the labour force in most countries.
The Chief of Staff of AfCFTA, Silver Ojakol, said there were a lot SMEs could benefit from AfCFTA which included building their small businesses into giant ones with over 1.3 billion people at their disposal to trade with.
Using Ghanaian businesses as an example, he said persons who engaged in shea butter business in the northern region, for instance, should not see themselves as engaging with only 30 million people, but rather 1.3 billion people with over 600 million being women who would be interested in their products.
Speeches at the Opening Ceremony of the Ministerial Retreat On African Union Agenda 2063 (AU)
Welcome Statement by Hon. Vincent BIRUTA, Minister of Foreign Affairs and International Cooperation of the Republic of Rwanda Kigali, 1st October 2023
This retreat comes at a very opportune time, enabling us to engage in collective brainstorming and to renew our commitment to monitoring the continental priorities of Agenda 2063. Ladies and Gentlemen, The AU Agenda 2063, serving as Africa’s blueprint for socioeconomic development, has demonstrated commendable progress in its first 10 years of implementation. Substantive advancements have been made to improve road network connectivity, Single African Air Transport Market (SAATM), electrification, access to ICT, gender equality, and the establishment of the AfCFTA, to name but a few.
While the continent has made notable progress during the first decade of Agenda 2063, we need to acknowledge that we are still facing considerable challenges in areas such as poverty reduction, job creation, free movement of people, and in ensuring a secure and peaceful Africa. These issues will require our full attention in the Second Ten Year Implementation Plan.
Ambassador stresses expanding coffee export to Japan (Ethiopian Press Agency)
Ethiopian coffee association, coffee growers and trade societies should play a significant role to expand coffee export to Japan and other countries thereby becoming more competitive in the sector internationally, so stressed Ambassador Daba Debele. Coffee is the highest source of foreign currency earnings in the country. Thus, besides government institutions, the role of Ethiopian coffee association, coffee growers and exporters is crucial.
The Ambassador made the above statements during the discussion held on the lessons drawn from the expo at the Embassy following the conclusion of World Specialty Coffee Conference and Exhibition 2023. Appreciating Embassy’s effort, Ethiopian Coffee Association President Desalegne Jenna, urged concerned bodies to come together and join force with the embassy to properly utilize the coffee sector.
Over 45 Ethiopian coffee growers and exporters took part at the event which is organized by the Specialty Coffee Association of Japan (SCAJ) while some 45,000 participants, coffee growers, exporters, importers and processors worldwide participated at the event.
Nigeria, African nations priotise to develop 620trn cubic feet of gas reserves (Vanguard)
Nigeria and other African nations have expressed commitment toward the development of their 620 trillion cubic feet of proven gas reserves, targeted at bolstering energy security, industrialization and environmental sustainability. The continent is also committed to the development and exploitation of its estimated 125.3 billion barrels of proven crude oil reserves.
This is even as Amni International, an independent oil and gas exploration and production (E&P) company moves to acquire new assets and explore growth opportunities across West Africa.
In a statement obtained by Vanguard, African Energy Chamber, AEC, stated: “Africa is prioritising the development and exploitation of its estimated 125.3 billion barrels of proven crude oil and 620 trillion cubic feet of proven gas reserves under efforts to bolster energy security, industrialization and environmental sustainability.
Huawei unveils $430m investment to boost digital Africa (Trade Arabia)
Huawei has unveiled a $430 million investment plan named ‘Intelligent Future’ for the Northern Africa region, encompassing the 28 countries located to the north of the equator within the African continent.
This grand five-year investment initiative, is allocated as follows: $200 million to establish the region’s first public cloud centre, offering over 200 cloud services, and an additional $200 million to support 200 local software partners and empower 1,300 channel partners. In term of talent development, Huawei will invest $30 million to train 10,000 local developers and educate 100,000 digital professionals, creating a skilled workforce to drive intelligent transformation in the region.
Terry HE, President of Huawei Northern Africa (North, West & Central Africa), revealed the company’s renewed strategy to guide Africa towards a ‘smart and connected future’ at the eighth edition of Huawei Connect in Shanghai.
Algeria says Niger accepts its mediation in resolving political crisis (Yahoo News)
Niger has accepted an Algerian offer to mediate in its political crisis, Algeria’s foreign ministry said on Monday, five weeks after the North African country proposed a six-month transition process led by a civilian. Algeria received Niger’s official notification of its acceptance of President Abdelmadjid Tebboune’s mediation initiative, the ministry said in a statement read out on national television.
In late August, Algerian Foreign Minister Ahmed Attaf said Algeria had spoken several times to Niger’s military leaders and proposed an initiative to return the country to normal constitutional order.It said it would propose guarantees for all sides in the crisis and host a conference on development in the Sahel region, without elaborating.
Coming up! European Union-East African Community MARKUP II launch (The Diplomatic Service of the European Union)
The launch of the European Union (EU) – East African Community (EAC) MARKUP II programme begins a new phase with the objective of supporting small agribusinesses and horticultural producers to compete in international markets. It focuses on value chains ranging from cocoa and coffee to avocados, spices, and tea.
In phase one, at least 115 companies achieved a collective $16 million in sales and exports. MARKUP I also helped draw in $1 million in investment for over 70 small businesses. Over 40 business support organizations shared that their work became more effective through their involvement in the programme. Over the last five years, the EU-EAC Market Access Upgrade Programme (MARKUP) supported small agribusinesses and horticultural producers to compete in international markets.
Building on these achievements, we are thrilled to announce the official launch of MARKUP II on October 3, 2023, in Arusha, Tanzania. This phase, running until 2027, aims to harness the full potential of agribusiness in the EAC partner states. The renewed efforts will prioritize sectors and value chains within the EAC, which lay emphasis on processing, value addition, diversification, investment, and export linkages.
Soaring sugar prices hit African nations the hardest (Engineering News)
Skyrocketing sugar prices are hitting some of Africa’s poorest nations particularly hard, forcing families and restaurants to forgo use of the ingredient that is core to local diets. Disappointing harvests from some of the world’s biggest producers have pushed wholesale prices near the highest in more than 12 years in September. While that’s adding to unrelenting inflation pressures across the globe, African nations are particularly vulnerable amid a heavy reliance on sugar imports and a shortage of US dollars.
Consumers in Rwanda, Uganda, Kenya and Tanzania are paying some of the highest prices for sugar in decades, made worse by tariffs on imports, according to data by Nairobi-based commodities research group Kulea. With energy prices also elevated and unemployment rising, the surging costs are causing headaches for families trying to feed themselves.
“The pain of higher prices isn’t being felt equally across the region – it’s falling most on poorer countries,” said Kulea’s head of research Willis Agwingi. The staple ingredient forms an important part of local food customs, and is also used in the pastries and sweets that surround Muslim celebrations. For many African households, “sugar remains one of the most affordable sources of calories,” according to Kona Haque, head of commodities research at ED&F Man. But surging prices are forcing consumers to spend less on soft drinks and forgo sugar that’s typically added to chai and other beverages, Agwingi said. Companies are also cutting back on purchases due to lackluster demand.
Farmers plant more cocoa outside Africa as prices rally (Reuters)
Production of the chocolate-making ingredient is expanding outside of the main growing area in West Africa as farmers in places such Brazil, Ecuador and Colombia see potential profit in the crop.
Schmidt Agricola is a large agricultural company producing soybeans, corn and cotton in Bahia, Brazil, one of the country’s new-frontier agricultural areas fit for large-scale, high-tech farming. It recently added a new crop to its fields: cocoa.
The rally in prices to the highest level in nearly 50 years is boosting that trend, which could alleviate the current supply tightness in the global cocoa market. It also poses a threat to the livelihood of small farmers in Africa since recently planted orchards such as the ones in South America are more productive, reducing the overall cost of production.
Digitally deliverable services boom risks leaving least developed countries behind (UNCTAD)
While digital delivery has the potential to empower skilled providers anywhere in the world to engage in trade, its benefits are not automatic. Many developing countries lack adequate infrastructure and financial resources to tap the potential of digitally delivered trade. And only a few countries directly measure the size and composition of trade in digitally delivered services. These include telecommunications and computer services, financial, insurance, pension and various business services.
To help plug this data gap, a new handbook by UNCTAD, the World Trade Organization, the International Monetary Fund and the Organisation for Economic Co-operation and Development sets out a common framework and practical guidance to help countries measure digital trade. Coordinated capacity-building is under way to support countries in this area.
Meanwhile, new UNCTAD estimates show that worldwide, exports of digitally deliverable services increased by 3% in 2022, reaching $3.94 trillion. This represents a moderation compared to the 16% increase in 2021 amid the COVID-19 pandemic. While developed countries still dominate trade in digitally deliverable services, the share of developing countries increased from 19% in 2010 to 24% in 2022, with China accounting for a notable portion.
DG Okonjo-Iweala: Trade is important for innovation, women’s economic empowerment, climate (WTO)
The role of trade in supporting women-led small businesses, addressing climate change and fostering innovation was highlighted by Director-General Ngozi Okonjo-Iweala at a workshop jointly organised by the Informal Working Group on MSMEs, the Informal Working Group on Trade and Gender, and the Trade and Environmental Sustainability Structured Discussions (TESSD) on 28 September. “Coming together and coordinating action is important for building strength and carrying our work forward more efficiently … as the WTO works towards greater inclusivity,” she said.
WTO members review farm policies, discuss food security, agri-food system resilience (WTO)
At a meeting of the Committee on Agriculture on 27-28 September, WTO members reviewed each other’s farm policies to ensure compliance with WTO disciplines. Food security was the main focus of discussions but members also addressed other topics, such as the interconnection between agri-food trade, technology transfer and protection of the environment. Participants exchanged views on ways to improve transparency on members’ agricultural measures and to enhance the overall functioning of the committee.
Selected commentaries and opinion pieces
How innovative payments and eCommerce can catalyse intra-African trade (Businessday NG)
How Can African Countries Participate in U.S. Clean Energy Supply Chains? (Carnegie Endowment for International Peace)
Belt & Road: Mechanism boosting trade between China, Africa (Kenya Broadcasting Corporation)
How India can expand footprint in Global South by tapping Africa’s mega trade pact (India Narrative)
BRICS Cooperation Mechanism Gives Hand to Global South (RIAC)
China’s success inspires Africa to seek independent development path (Peoples Daily)
Emerging Economies Need Much More Private Financing for Climate Transition (IMF Blog)
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Trade statistics for August 2023 (SARS)
South Africa recorded a preliminary trade balance surplus of R13.3 billion in August 2023. This surplus is attributable to exports of R181.3 billion and imports of R168.0 billion.
The year-to-date (01 January to 31 August 2023) preliminary trade balance surplus of R32.0 billion is a deterioration from the R160.5 billion trade balance surplus for the comparable period in 2022. On a year-on-year basis, export flows for August 2023 were 4.6% higher at R181.3 billion compared to R173.3 billion recorded in August 2022, whilst import flows were 0.1% lower having decreased from R168.2 billion in August 2022 to R168.0 billion in the current period.
Export component of South Africa’s green hydrogen strategy will seek to lock in price subsidies (Engineering News)
The initial export component of South Africa’s yet-to-be-approved Green Hydrogen Commercialisation Strategy is not premised on the trade of scarce renewable electrons – converted into molecules or other tradeable derivatives – to decarbonise the industries of developed economies in Europe and Asia, Presidential Climate Commission (PCC) commissioner Joanne Bates insists.
Instead, such exports are designed to ensure that South Africa can “lock in” the grants, concessional debt and contract-for-difference price subsidies that are currently being offered by countries such as Germany and Japan to stimulate the use of green hydrogen products in their hard-to-abate sectors of steel, cement, petrochemicals, shipping and aviation.
Bates, who is also chief operations officer at the Industrial Development Corporation and part of the panel set up by Trade, Industry and Competition Minister Ebrahim Patel to finalise the strategy, offered this explanation in a presentation on the proposed strategy during a PCC meeting in Johannesburg.
Don’t kick SA out of AGOA – Anthony Carroll (Politicsweb)
“Examining the U.S.-South Africa Relationship” committee hearing, Washington DC
September 27, 2023
“The US economic relationship with SA also has some positives and some negatives. No country has benefited from AGOA as much as South Africa. Last year, according to the Africa Coalition for Trade, SA exported over $14 billion in goods to the US (with about a quarter of these goods benefiting from AGOA duty-free access), and the U.S. exported $6.5 billon of goods (an increase of 15% from 2021) and another estimated $2 billion of services.
Our imports from SA include manufactured goods and agricultural products that employ tens of thousands of people and have fostered the emergence of regional value chains. For example, automotive components are built in Botswana and transported for final assembly in SA. Over 600 US companies operate in South Africa, and many do so as a gateway to Africa. Indeed, South Africa’s leading trade partner is “the rest of Africa.”
In conclusion, while I understand and share the concerns of many about the direction of our relations with SA, I would oppose making it ineligible for AGOA.”
Download: pdf Prepared testimony (96 KB)
BRICS offers SA prospects to deepen relations (SAnews)
The expansion of the BRICS not only gives weight to the bloc but also grants South Africa the opportunity to deepen ties with the countries that are expected to join the formation next year. South Africa hosted the 15th BRICS Summit in Johannesburg last month where President Cyril Ramaphosa as chair of the bloc announced that Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates will join the BRICS.
“It gives the bloc more weight politically [and] economically in an international space. Domestically, we can gain from ensuring that there’s deepened trade ties with these countries which would expand economic opportunities within South Africa itself and the other emerging markets you find in the BRICS bloc. “It increases your momentum within the global stage itself,” assistant lecturer at the Department of Politics and International Relations at the University of Johannesburg, Ndzalama Mathebula told SAnews.
The six developing countries are set to become full members of the BRICS [Brazil, Russia, India, China and South Africa] bloc from January 2024.
Trade deficit shoots up 16% to US$1,2 billion (The Zimbabwe Independent)
ZImbabwe registered a negative trade balance of US$1,24 billion during the seven months to July, up 16% compared to the prior period, as the effects of government’s relaxation of basic commodity imports filtered through, data from the Zimbabwe National Statistics Agency (ZimStat) showed this week. The trade deficit stood at US$1,07 billion during the same period last year. This means Zimbabwe is spending more foreign currency to import goods and services than it is exporting.
The data indicates that Zimbabwe exported goods and services worth US$3,83 billion during the review period, compared to US$5,07 billion imports, resulting in a US$1,24 billion trade deficit. On Tuesday, leading economists said Zimbabwe’s overreliance on primary commodities will not be sustainable. “The concern there is that, the global and Zimbabwe-South Africa trade deficit have widened, which I think is a concern,” Prosper Chitambara, chief economist at the Labour and Economic Research Institute of Zimbabwe, said. “The exports have increased but not very significantly while we see imports have actually increased quite significantly overall.
The Ministry of Industry and Commerce with support from the United Nations Economic Commission for Africa (UNECA) Sub-Regional Office for Southern Africa (SRO-SA) held a workshop to review the Zimbabwe National Industrial Development Policy at Rainbow Towers in Harare. The purpose of the workshop was to assess the implementation of the Zimbabwe National Industrial Development Policy (2019-2023) which is expiring in December this year, and to review and validate the draft successor policy, the Zimbabwe Industrial Development Policy (2024 – 2030).
The Ministry of Industry and Commerce with the support from UNECA SRO-SA retained a consultant to review the implementation of the Zimbabwe National Industrial Development Policy (2019-2023) and to draft a successor ZNIDP (2024-2030) aligned to the current national economic policies and thrust and with regional industrialization strategies and policies.
The Ministry also launched a report on the local content thresholds for the fertilizer, packaging and pharmaceutical sectors during the workshops. The sector thresholds, developed and validated in a fully consultative manner, provide a framework for the implementation of local content strategies in the three sectors as part of the overall national endeavour of strengthening domestic linkages of the industrial sector. UNECA SRO-SA provided the technical and financial support towards the development of the thresholds.
Egypt grows as an investment gateway to Africa (Euromoney)
Egypt has long been a strategic partner for many countries in the Middle East and North Africa region. In recent years, it has also emerged as a gateway for trade and investment in Africa thanks to its geographic location, economic reforms, and regional integration efforts.
A strategic location at the crossroads of Africa, Asia, and Europe, and the Suez Canal (which connects the Mediterranean and the Red Sea) provide Egypt with a competitive advantage in terms of connectivity, logistics, and market access to consumers globally. Moreover, Egypt has undertaken significant economic reforms in the past few years aimed at improving its macroeconomic stability, business environment, and investment climate. These reforms include fiscal consolidation, exchange rate liberalisation, energy subsidy reduction, tax reform, and structural reforms in various sectors.
Global Gateway: Ghana and the EU mark a new chapter in the battle against illegal timber trade (EC International Partnerships)
Ghana will be the first country in Africa and second worldwide to provide the EU with export licences that verify the legality of their timber products. Meeting in Brussels, the implementation body of the Ghana-EU Voluntary Partnership Agreement (VPA) on Forest Law Enforcement Governance and Trade (FLEGT), which brings together Ghanaian public authorities in charge of forest administration, the private sector, civil society and the European Commission, reached an agreement on the last steps towards issuing FLEGT licences, marking a new chapter in the battle against illegal timber trade.
European Commissioner for International Partnerships, Jutta Urpilainen, said: “The dedication of the government and the forestry sector, in cooperation with European partners, has brought FLEGT licensing to within our reach. This achievement underscores the power of international cooperation in addressing critical global challenges such as deforestation and illegal logging.”
The Hon. Minister for Lands and Natural Resources of Ghana, Mr. Samuel A. Jinapor, said: “Ghana has seen significant improvements in forest governance with the implementation and operationalisation of the timber legality assurance system. The impending issuance of FLEGT licenses to the EU market and licenses to other international destinations will be guided by the same legality standards. This will be the next logical step in consolidating the gains towards sustainable forest management and forest governance as a whole. Ghana’s commitment to the VPA, as well as halting and reversing forest loss and land degradation by 2030 remain absolute.”
African top economist urges Uganda to fast-track oil and gas (The Independent Uganda)
The African Development Bank has warned it is “a race with time” for Uganda to begin pumping its oil out of the ground or risk future losses. Edward Sennoga, Second Lead Economist for the AfDB’s East African office said there is an opportunity for Uganda to earn from its newly found oil, but time was running out.
“So we are racing against time for Uganda. We need to harness this fossil fuel for short-term energy security but time is not on our side,” said Edward Snnonga. He was one of the speakers at the launch of the African Development Bank’s Uganda Country Focus Report 2023 at Hotel Africa in Kampala. The warning by Sennoga and other experts is based on the fear that the global shift or transition to low-carbon economies or the energy transition could affect the demand for oil globally.
Some experts have indicated that Uganda should have begun pumping its oil before 2030 or 2040 when the world shifts to electric vehicles. The Energy transition bringing new pressures to bear on the oil and gas sector from stakeholders and regulators.
TCCIA urges manufacturers to use AfCFTA to create wealth (The Citizen)
The Tanzania Chamber of Commerce, Industry, and Agriculture (TCCIA) has urged manufacturers and exporters to utilise the African Continental Free Trade Area (AfCFTA) to help Tanzania create wealth, create jobs, and increase foreign earnings. TCCIA acting managing director, Ms Mwanahamisi Hussein, said the continental free trading bloc offers many opportunities that Tanzanians cannot afford to miss.
“We are offering these training sessions to expose our manufacturers and traders to the benefits and opportunities found in the AfCFTA. “One of the many benefits is that the bloc creates a market for Tanzanian products, and the business is free from tariffs. We appeal to our exporters to use this bloc to strengthen our industrial base, create wealth and jobs, earn foreign currency, and strengthen our national economy,” she said. She said Tanzania wants to seriously engage in continental and world trade instead of being on the receiving end.
South Sudan’s leader discusses closer ties in energy, trade with Russian President Putin (ABC News)
Visiting South Sudan President Salva Kiir agreed in a meeting with Russia’s president to expand their relationship in energy, trade and other areas, notably oil.
According to a video of the leaders’ public statements posted online by the Kremlin, Putin said the development of oil refineries in South Sudan with the participation of Russian companies would strengthen ties. “This is only the beginning. We have many good opportunities in a variety of fields, including energy,” Putin said. Currently, Russia’s Safinat Group is working on an oil refinery in South Sudan’s Unity state.
African Continental Free Trade Area to create immense opportunities for Algerian businesses (Afreximbank)
“It Is time for Africa to take her destiny in her own hands and to determine her own developmental agenda. However, doing so will not be easy. It will require commitment, courage, and deliberate action. Traders need to seek out new market opportunities rather than the conventional route of turning to markets abroad”. Rallying words from Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade Bank, Afreximbank, in her opening remarks as she addressed delegates at the High-Level Business Roadshow in Algiers, Algeria.
Mrs. Awani congratulated Algeria for becoming a Member State of Afreximbank in June 2022. She stated that the African Continental Free Trade Area “promises to revolutionise trade, reshape markets across the region, boost output in the manufacturing and service sectors, and fundamentally transform Africa’s economic structure”. She lauded the opportunities that it will provide to Algeria’s businesses.
She also explained the broad range of Afreximbank programmes and initiatives that can facilitate Algeria’s intra-African trade, such as the Africa Collaborative Transit Guarantee Scheme, which will mean for example that goods going from Algiers, Algeria to Lagos, Nigeria, will not need “a Customs Bond on every border as is the case today.” She also discussed the Bank’s programmes that support trade-enabling infrastructure especially those that address mobility and connectivity (road, rail, air, maritime, ports and logistics).
Maiden train cargo trip set to decongest Apapa Port (Channels Television)
The first-ever train cargo trip carrying containers from Apapa Port to Ibadan has set in motion a transformative initiative aimed at alleviating congestion and enhancing efficiency in Nigeria’s transportation sector.
The development comes as a result of the efforts of the Minister of Transportation, Senator Said Alkali, who inaugurated the loading of 30 coach container wagons on September 12.
The maiden train cargo trip, which commenced on Wednesday marks a milestone in the ongoing mission to relieve the burden on Apapa Port and streamline the movement of goods across the country categorized with traffic congestion and logistical bottlenecks at Apapa Port.
The 1st round table of development partners and major regional and international DFIs on the financing of the Construction of the Abidjan-Lagos Corridor Highway held on Tuesday 26 September 2023, in Abidjan, Côte d’Ivoire under the auspices of the Commission of the Economic Community of West African States (ECOWAS), the African Development Bank (AfDB) and the ECOWAS Bank for Investment and Development (EBID).
This flagship project preliminary estimated at US$15.1 billion, lies at the heart of the ECOWAS Vision 2050 and the 4x4 strategic objectives of the ECOWAS Commission Management. The 1,028 km supranational highway will connect the economic capitals of five West African countries, namely Côte d’Ivoire, Ghana, Togo, Benin and Nigeria, forming an important part of the Trans-African Highway Network that commences from Praia in Cabo Verde through Dakar, Abidjan, Lagos which connects Central and East Africa to end at Mombasa in Kenya.
The solemn opening of the round table took place, with a speech delivered by Mr. Stéphane Ezoa, Deputy Director of Cabinet on behalf of the Minister of Equipment and Maintenance of Roads for Cote d’Ivoire, Dr. Amédé Koffi Kouakou who stressed that the authorities of his country attach great importance to this highway and are committed to work with the other corridor countries and ECOWAS to achieve this great vision of the five Presidents.
pdf Final Statement of the 13th Ministerial Meeting on Infrastructure (66 KB) (COMESA)
The Thirteenth Meeting of COMESA Ministers in charge of Transport, Communications and Information Technology and Energy was held on 14th September 2023 in Kigali, Rwanda. The main objectives of the meeting were to consider the progress made in the implementation of Council Decisions on infrastructure projects in transport, ICT and energy sub-sectors at the Secretariat and Member State levels. Selected extracts:
ENDORSED the review of the Model Energy Policy, the development of Model Solar Standards and commended the efforts to develop a Model Common Customs Tariff Framework for solar products;
COMMENDED the COMESA Digital Free Trade Area (DFTA) initiative and directed the Secretariat to prioritize in the implementation of projects under DFTA as it has the potential of changing lives of COMESA citizens by using technologies to boost intra-regional trade and accelerate regional integration;
APPRECIATED the efforts made by the COMESA Secretariat to improve access and reduce cost of ICT services through the development of open access frameworks on fibre networks and humanized regional roaming and interconnection frameworks;
Stakeholders push intra-African trade in fashion industry (Voice of Nigeria)
Stakeholders in the fashion industry are calling for improved intra-African trade and business relationships amongst entrepreneurs in the fashion and arts industries on the continent. This is as the African Fashion & Arts Award (AFAA) emphasised the need for fashion and art creatives to be empowered, rewarded and celebrated.
Founder and President of AFAA, Mr. Kingsley Amako, noted that over 65% of the African 1.4billion population is made up of youths between the creative ages of 12-35 years and that fashion and arts remains the most viable and potentially the creative industry vertical generating the most revenue enough to effect a significant change on the continent’s GDP.
Ahead of the 28th United Nations Conference on Climate Change (COP 28), the African Development Bank Group has launched country-by-country economic reports to guide African policymakers in their discussions at the global event.
The new Country Focus Reports (CFRs) provide analysis and policy recommendations to strengthen countries’ active participation at COP 28, which takes place in Dubai, United Arab Emirates, from 30 November to 12 December. The theme of the reports is “Mobilising private sector finance for climate and green growth in Africa”. The reports foster policy dialogue on macroeconomic performance and outlook and provide insights on mobilising private sector and natural capital finance to drive the continent’s climate resilience and green growth policies.
“As countries prepare for COP28, the reports provide each African country with independent, verified analysis and recommendations for evidence-based negotiations during the global conversation on climate finance and green transitions,” Urama said.
DG Okonjo-Iweala calls on WTO members to deliver for development at MC13 (WTO)
DG Okonjo-Iweala stressed that LDCs’ trade priorities form an integral part of broader trade and development discussions, including in the context of WTO reform. “We need to keep examining development-related matters across the spectrum of the WTO — from regular Committee work to trade negotiations to dispute settlement,” she said. She also acknowledged ongoing efforts by development partners and others to ensure more effective trade support for LDCs.
Delivering the opening remarks, DG Okonjo-Iweala welcomed the ratification of the WTO’s Agreement on Fisheries Subsidies by many members and encouraged other members to follow suit. “We also need to keep making progress on the second wave of fisheries negotiations,” she noted.
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Dip in exports out east raises red flags for SA (Freight News)
The importance of China in South African trade cannot be overstated, considering the country’s economic well-being relies heavily on the export of minerals to the Eastern giant. These exports generate the crucial income needed to import the essentials that keep South Africa’s economy running smoothly.
According to Francois Fouche, an economist at the Gordon Institute of Business Science (GIBS), with China standing as South Africa’s largest trade partner, the recent economic challenges faced by China, particularly in its real estate sector, have sparked concerns that could have profound consequences for South Africa’s trade.
“China has long been a key destination for our mineral exports, including vital resources like iron ore. These exports play a pivotal role in South Africa’s ability to generate the income necessary for importing essential goods, which are indispensable for the country’s economic functioning,” he told Freight News. “However, as China grapples with economic slowdowns, there is apprehension that Chinese demand for South African exports may decline.”
South Africa needs to look internally before going global on hydrogen (Engineering News)
As South Africa progresses its hydrogen strategies and plans as a means to mitigate climate change and to bolster security of energy supply, the country needs to look internally before embarking on global outflows.
Speaking at the Hydrogen Africa conference, held in Johannesburg from September 27 to 29, Richards Bay Industrial Development Zone Company COO Muze Shange said that amid the conversations surrounding hydrogen developments and exports is the need for focus around South Africa’s own needs and its own demands.
Expert speakers across the industry and world convened at the conference on Thursday to unpack the hydrogen economy, the opportunities and challenges and the potential for African – and global – trade of an emerging industry that could bring about significant economic gains and create thousands of jobs. Discussions were held on the advancement of the global hydrogen economy and market, hydrogen certification and standardisation, cross-border and global hydrogen trade markets and various regulatory frameworks.
Hydrogen can play a pivotal role in driving Africa’s energy transition and unlock a new era of sustainable development. However, collaborative leadership is required to seize the opportunity presented by hydrogen, Shange said, noting that such leadership will allow the country to drive hydrogen demand and growth, as well as various key initiatives toward cross-border and global trade markets.
EU-Kenya Economic Partnership Agreement closer to approval (European Commission)
The EU-Kenya EPA will boost trade in goods and create new economic opportunities, with targeted cooperation to enhance Kenya’s development. It is the most ambitious EU agreement with an African country thus far as regards climate protection and labour rights.
The agreement foresees immediate full liberalisation of the EU market for Kenyan products, and will incentivise EU investment in Kenya, thanks to increased legal certainty and stability. The EPA contains strong trade and sustainability commitments, including binding provisions on labour matters, gender equality, environment, and the fight against climate change, and a dedicated chapter on economic and development cooperation to enhance the competitiveness of the Kenyan economy.
The deal will be supported by the implementation of the Global Gateway Africa-Europe Investment Package announced at the 6th EU-African Union Summit in February 2022. It will facilitate trade and investment, accompanied by trade-related development cooperation, with a view to further deepening the economic ties between the EU and Kenya, boosting sustainable economic growth, and creating jobs.
Once the Council gives its agreement, the EU will be able to sign the EPA with Kenya, that would then be sent to the European Parliament for consent. Following approval, the deal can enter into force.
Zambia upbeat on concluding national climate adaptation plan (Xinhua)
The Zambian government on Wednesday expressed confidence that it will be able to finalize the country’s national climate adaptation plan in time for the 28th session of the Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC), which is scheduled to be held in Dubai, the most populous city of the United Arab Emirates, from Nov. 30 to Dec. 12.
Douty Chibamba, permanent secretary in the Ministry of Green Economy and Environment, said Zambia wanted to join the few least developed countries that have submitted their national climate adaptation plans to the UNFCCC. He said that so far 16 countries in Africa have completed and submitted their national climate adaptation plans and Zambia would like to be counted in the next batch of countries that would have successfully done so. In remarks delivered during a national climate adaptation plan consultative meeting, Chibamba said the plan is an important milestone for every Zambian towards achieving resilience to the impacts of climate change.
Stakeholders seek US partnership to enhance investment prospects in Nigeria (TheCable)
A group of stakeholders has solicited US partnership to boost trade and investment opportunities for small and medium enterprises (SMEs) in Nigeria. The stakeholders, including ministers, shared the existing trade opportunities in various sectors at an event on the sidelines of the 78th United Nations Annual General meetings. The programme had Nigerian political, business leaders and their US counterparts, in attendance.
On the front burner was advancing trade relations between both continents. The event themed, ‘The Imperatives of Global Trade for SMEs as Game Changer for the Future Prosperity of the African Continent’, held on September 21 in New York
The comprehensive strategic and cooperative partnership between Ethiopia and China has deepened the bilateral cooperation in various fields, Chinese Embassy Deputy Chief Shen Qinmin said. The 74th anniversary of the founding of the People’s Republic of China was marked yesterday at the Sky Light Hotel.
During the ceremony, Embassy Deputy Chief Shen Qinmin said China and Ethiopia have jointly made great efforts to promote peace and development in the Horn of Africa in a bid to make contribution to peace, stability, development and prosperity in the region. He also stated that the BRICS mechanism presents a new vision and new opportunities for the two countries’ common development.
“Ethiopia plays an important role in regional cooperation and global affairs. (Therefore) Ethiopia’s joining BRICS will bring new vitality and the momentum to the BRICS cooperation and to build the mechanism into a key platform for a fair and just global political order and economy with inclusive and sustainable development.”
AfCFTA to boost remittances but global markets remain king (The Star)
The African Continental Free Trade Area has potential to increase cross-border remittances by migrants, a report by World Bank now indicates, even as international markets remain the largest sources. This comes as market projections indicate a possible slowdown in the growth of remittances to Sub-Saharan Africa, expected to fall from 6.1 per cent in 2022 to 1.3 per cent in 2023.Risks to the outlook include capital outflows, measures to control foreign exchange and sanctions, World Bank notes.
Growth in remittance flows is expected to recover to 3.7 percent in 2024, with Nigeria, Ghana, Kenya and Zimbabwe among the biggest recipients in in the Sub-Sahara Africa.
Angola to Host the 53rd AASA Annual General Assembly (Airspace Africa)
Angola is set to host the 53rd edition of the Airlines Association of Southern Africa (AASA) Annual General Assembly from October 5 to 8 in its vibrant capital city, Luanda. This prestigious event, co-organized by TAAG Angola Airlines, marks the first time that Angola has been chosen as the host country for this pivotal gathering.
The AASA Annual General Assembly serves as a critical platform for industry stakeholders, including airlines, regulators, manufacturers, service providers, investors, diplomatic representatives, and government entities, to come together and engage in essential discussions and networking opportunities. The assembly is dedicated to addressing the challenges and opportunities facing civil aviation in Africa, emphasizing cooperation and collaboration among key players in the aviation ecosystem.
One of the standout events of the assembly, scheduled for October 6, is the roundtable sessions. These sessions will feature over 200 delegates and top decision-makers from various corners of the aviation world. The discussions during these sessions will encompass a wide range of topics crucial to the industry’s growth and sustainability, including the competitive environment, connectivity, financing, supply chain, operating costs, regulatory aspects, and the future of African airlines.
Dakuku canvasses African maritime sector development sustainability (Daily Trust)
Turnaround expert and an independent maritime consultant, Dr Dakuku Peterside, says sustainable development of the African maritime sector is crucial to unlocking the potential of the continent and making it a huge contributor to the world economy. Peterside made this submission at the Agenda For African Development Senior Managers Forum on Environmental Management System in African Seaports at the Arab Academy for Science, Technology, and Maritime Transport in Alexandria, Egypt.
Revealing statistics that Africa accounts for less than 3% of global trade and just about 15% of intra-African trade compared to Europe (68%), Asia (58%), North America (48%), and Latin America (20%), he argued that African leaders under the auspices of Africa Union (AU) must quickly activate the African Continental Free Trade Area (AfCFTA) aimed at boosting intra African trade.
The immediate past DG/CEO of the Nigerian Maritime Administration and Safety Agency (NIMASA) noted that the United Nations Economic Commission for Africa (UNECA) estimated that AfCFTA could boost intra-African trade by up to 33% and cut trade deficit by 51%, time was of the essence in promoting trade. According to him, “This increase in trade will lead to higher demand for maritime transport, create new market opportunities, and spur investment in port infrastructure.”
While stressing that the maritime sector will play a key role, he argued that it would involve tackling issues such as strengthening governance, improving infrastructure, investing in human capital, and improving the operating environment.
China’s success inspires Africa to seek independent development path (CCTV.com)
Inspired by China’s development over the decades, more and more African countries are seeking to follow the development paths that suit their own domestic conditions. At the China-Africa Leaders’ Dialogue held in South Africa’s Johannesburg in late August, Chinese President Xi Jinping once again encouraged African countries to find the path that suits Africa best.
Despite being rich in resources and boasting a large population and a vast market, Africa has remained the world’s poorest continent. “Obviously, by default, in almost every country in Africa, our conversations are Western-led or Western-engineered. But because the information flow is very easy now, people could really appreciate different voices and new perspectives,” said Paul Frimpong, executive director of the Africa-China Center for Policy and Advisory, a Ghana-based think tank.
Keeping Africa on track to SDG success (African Business)
For 30 years, the African Export-Import Bank (Afreximbank) has been an advocate for African solutions to Africa’s problems by creating and deploying innovative solutions to eliminate barriers to the attainment of Africa’s developmental aspirations.
Created with a mandate to promote intra-African trade, Afreximbank is working in partnership with the AU and the African Continental Free Trade Area (AfCFTA) Secretariat to reverse the commodity and market concentrations that have historically stalled Africa’s development, especially due to the commodity dependency trap. Fundamentally, the Bank’s interventions in support of its member states are in alignment with AU’s Agenda 2063 and the United Nations Sustainable Development Goals (UN SDGs).
In response to the food security challenge on the continent heightened by geo-political conflicts, the Bank, working with UNECA, created the African Trade Exchange (ATEX), a platform that is already connecting buyers and suppliers of scarce agricultural commodities and fertilisers arising from the Ukraine conflict. In the long run, ATEX will facilitate the smooth integration of regional suppliers into the continent’s supply and value chains, vital for trading under the AfCFTA.
AFC secures $300 mn loan from CEXIM to boost trade finance in Africa (Africa Aviation News)
Africa Finance Corporation announced the successful signing of a $300 million loan facility agreement with the Export-Import Bank of China (CEXIM). This agreement, signed on the sidelines of the Asian Infrastructure Investment Bank (AIIB) Annual meetings in Egypt, is poised to drive increased trade finance and investment across the African continent, fostering economic growth and development.
The release reads, “The 3-year $300 million loan facility is a significant development in AFC’s long-standing relationship with CEXIM.” The two institutions have collaborated since 2018, with AFC receiving $400 million in bilateral loans from CEXIM to date. The loan will provide critical financing to support trade finance and investment in Africa, further facilitating the flow of goods and services between Africa and China.”
“CEXIM attaches great importance to the China-Africa financial cooperation and AFC is an important partner for us. Over the past few years, CEXIM has provided loans to AFC to enhance the bilateral trade and investment between China and Africa.” said Wencai Zhang, vice president of CEXIM, “This new project has elevated our bilateral cooperation to a new level and will further enhance China-Africa trade and economic cooperation through the financial support of our two institutions.”
Economic integration surest way to guarantee Africa’s peace, prosperity says Gabby Otchere-Darko (Class FM)
Executive Chairman of the Africa Prosperity Network (APN) and Senior Partner of the Africa Legal Associates (ALA), Gabby Asare Otchere-Darko, has stated that the economic integration of Africa is the surest pathway to guarantee the continent’s peace, security and prosperity for all her peoples.
Delivering his welcome address at the maiden edition of the Global Africa Forum (GAF) jointly organised by the Africa Prosperity Network (APN) and the Africa-America Institute (AAI) on Thursday September 21st, 2023, on the margins of the 78th UN General Assembly in New York City, under theme: “Mobilising Global Africa Investment to Boost Intra-African Trade,” Mr Otchere-Darko said political and business leaders must prioritize the integration agenda of the continent.
The best way to achieve this integration in Mr Otchere-Darko’s view, is to have a mindset of Africa without borders. The concept of global Africa he said, will be much more meaningful and find expression if the continent gets rid of the borders that are dividing her currently. He told the gathering that investors who are not Africans in any shape or form, have invested in Africa and their investments have become profitable. The “global African,” Mr Otchere-Darko said, must see the need to also invest in the continent with profitability as a target.
9th BRICS PF Converges to Foster Multilateralism, Cooperation, and Collaboration (Parliament of the Republic of South Africa)
The 9th BRICS Parliamentary Forum (BRICS PF) got off to a remarkable start today as approximately 250 delegates from about 15 countries across different continents converged for discussions that reinforced the BRICS Parliaments’ commitment to multilateralism, cooperation, and collaboration.
The 9th BRICS PF is hosted by the Parliament of the Republic of South Africa, in the Ekurhuleni Metropolitan Municipality in Gauteng Province under the theme: “Harnessing inclusive Multilateralism and Parliamentary Diplomacy to deepen BRICS and Africa Partnership for Accelerated Implementation of the African Continental Free Trade Agreement.”
Today’s debate centred around the African Continental Free Trade Agreement (AfCFTA) and its potential impact on BRICS nations – as well as the crucial role that parliaments can play in maximizing its benefits. “This agreement presents BRICS nations with a significant opportunity by granting them improved access to the African market, creating new avenues for trade, and opening up possibilities for expanded investments,” said National Assembly Speaker Ms. Nosiviwe Mapisa-Nqakula.
BRICS group poised to shape global economy, says Saqr Ghobash (ZAWYA)
Saqr Ghobash, Speaker of the Federal National Council (FNC), emphasised the BRICS group’s potential to significantly shape the future of the global economy, given its combined GDP of approximately one-third of global GDP after the inclusion of six new member countries, vast human capital, and advanced technological and industrial capabilities. He added that the BRICS can also redirect global atte
Brics Symposium to help unlock private investment, close infrastructure funding gap (Engineering News)
The development and delivery of infrastructure ought not to be dependent on the availability of public resources, Finance Minister Enoch Godongwana told delegates attending the Brazil Russia India China South Africa (Brics) Infrastructure Investment Symposium on Thursday.
In his keynote address, the Minister implied that, with the Global Infrastructure Hub projecting a need for $94-trillion’s worth of infrastructure investment by 2040, it is unreasonable to expect governments in “constrained fiscal positions” to fund much of the investment.
“With a further $3.5-trillion required to meet the Sustainable Development Goals [and] at the projected investment levels of about $79-trillion, there will be a financing gap of about $18-trillion by 2040.” As Brics countries constitute a third of this investment requirement, Gondongwana noted that a focus this year has been on exploring ways to fast-track infrastructure development and delivery through increased private sector participation.
“We know that infrastructure investments offer stable, attractive and long-term cash flow for investors. For this reason, while the financing gap is suitably large, through greater collaboration and effective partnership, the gap can close.”
Ukraine grain corridor should not replace broader deal, UN trade chief says (Reuters)
Ukraine’s move to create a shipping channel for grain exports is a positive step for global food security, although efforts continue to reach a new agreement over a broader Black Sea corridor, the top U.N. trade official said on Wednesday.
Russia in July quit a U.N.-backed deal which had enabled exports from Ukraine to sail from three approved ports. Since then, Kyiv has launched what it calls a temporary humanitarian corridor in an effort to break Russia’s de facto blockade. Two ships have sailed in recent days from the Ukrainian port of Chornomorsk using the channel, which hugs the Romanian and Bulgarian coasts.
“We see the alternatives that are being explored to export in a very positive light because the important thing is to get the grain to global markets,” Rebeca Grynspan, who leads the implementation of the U.N. deal with Russia, told Reuters on the sidelines of a U.N. event in London. Grynspan said while the new corridor that Ukraine is trying to open is among “very important efforts”, she added that “the risks are higher”.
“The only thing that will take the risk away and stabilise ... the situation is an agreement that will be backed by all partners,” she said, adding she was unable to provide any timeframe for a deal.
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SA records trade surplus in July but off a low base (IOL Business Report)
South Africa’s terms of trade deteriorated materially in the first half of 2023 compared to the same period last year due to the declining volume of exports and weakening rand exchange rate during the period.
In July, South Africa recorded its most significant trade surplus of the year of R16 billion following a deficit of R3.5bn in June, but exports lifted by only R7.7bn as June was a low base, and there is typically high volatility in the trade data, while imports fell by -R9bn, a not unusual amount.
Investec chief economist Annabel Bishop on Friday said the trade balance averaged a miniscule surplus of R500 million in the first half of 2023, versus the surplus of R22.3bn for the same period last year, due to lower exports compared to last year.
Bishop said there continues to be a broad-based increase in the cost of imports overall for South Africa in 2023 to date of 9.1% and 8.8% year-on-year for the first half of 2023, with the rand experiencing very marked weakness compared to the same period in 2022, adding to import costs.
Roadmap to ‘fundamentally reform’ freight logistics sector by end of October (Engineering News)
Government has committed to finalise a Freight Logistics Roadmap, outlining a sequenced set of actions to fundamentally reform the logistics system, by the end of October. The commitment was made at a meeting of Cabinet members and senior business leaders held at Discovery Place in Sandton on September 26, chaired by President Cyril Ramaphosa.
In a joint statement following the meeting, government and business reported that their current collaboration in the logistics focal area was centred on ensuring implementation of immediate operational interventions, which had already been defined, alongside the development of the Freight Logistics Roadmap.
Chinese companies to get preferential tax treatment (People Daily)
Kenya will extend preferential tax policies to Chinese- owned companies looking to expand local operations in a move expected to bolster bilateral relations between the two nations. Currently, National Treasury through Kenya Revenue Authority (KRA) spreads wear and tear allowances, industrial building deduction, investment deduction and farm-works deductions to foreign firms setting up locally.
The wear and tear allowances are charged on capital expenditure on machinery and equipment where they are classified into five classes all of which are offered the allowances at different rates. These include a 37.5 per cent per year on earth moving equipment and self-propelling vehicles like lorries, a 30 per cent rate on equipment like computers and a 12 per cent rate on telephone sets or switch boards among others.
Others are a 10-year withholding tax exemption on dividends and remittances paid to non-residents, 100 per cent investment deduction on capital expenditure for 20 years as well as exemption from customs duties on imported inputs. But the country’s chamber of commerce and industry is now seeking urgent clarification on whether the government can further extend or come up with new tax policies that enable foreign investors to benefit from taxable deductions.
This comes amid a recent report on tax compliance showing that Kenya and China are on the verge of signing a Double Taxation Avoidance Agreement (DTA), a move anticipated to create a space for investors to invest locally and exempt them from double taxation.
New industrial park; pathway to upper middle-income status (Tanzania Daily News)
BUSINESS experts consider the 3 billion US dollars (around 8tri/-) Sino-Tan Kibaha Industrial Park investment as a critical ingredient in Tanzania’s bold endeavour to attain an upper middle-income status. With a projected revenue output of about 1.3tri/- to be generated from over 200 industries to be erected at the industrial park upon completion of the project comes the year 2025, this project is expected to transform Tanzania into an industrial economic hub within the East African Community (EAC) and beyond.
According to analysts, the Sino-Tan Industrial Park marks an important milestone in the country’s journey toward ambitious Vision 2025 of making Tanzania an industrialised economy. A lecturer of economics at the University of Dar es Salaam (UDSM) Prof Humphrey Moshi commended the government for expediting its industrialisation agenda, noting that the project reflects that Tanzania and China diplomatic relationship continue to grow.
For his part, a business analyst, Mr Medard Wilfred also expressed optimism that Tanzania’s economy was going to grow from lower middle-income status to higher middle-income status. He revealed that industrialisation is a critical engine in any country’s economy, therefore the park’s establishment will help to strike a balance between exports and imports, something which will stabilise the economy. As such, the country will not only rely on exports but instead be the one to import more goods generating huge importation duties, he said.
Ethiopia To Manufacture Lada Cars For The African Market (Russia Briefing News)
Ethiopia will launch the production of Russian Lada cars on its territory for the African market, the countries Ambassador to Russia Cham Ugala Uriat has said. The move is significant as it illustrates why Ethiopia has joined BRICS – its low manufacturing cost base can assist keep production costs down while also providing access to the growing African market.
“We’ll see Russian Lada cars in neighboring countries in the near future, because Avtovaz have already signed a deal with one of the Ethiopian companies” Uriat said, adding that those cars will be produced in Ethiopia. Lada make a range of SUV suitable for the African market. In particular, Russian cars may be supplied to Sudan and South Sudan, Kenya and Somalia, Uriat said, and expressed hope that the production will start in the near future. Other Russian auto manufacturers “are showing interest now to go to Ethiopia to build assembling lines” as well, he noted. Two more companies are holding consultations with the Ethiopian side on that issue, the ambassador revealed.
Côte d’Ivoire, Guinea, Mali… Tunisian companies face boycott risk (The Africa Report)
“Today, the situation is not like the first crisis” when Tunisian products were the subject of calls for a boycott in March, following controversial statements by President Kaïs Saïed that were deemed offensive towards African migrants, a local businessman says on condition of anonymity. ”Our partners are unhappy with the treatment of sub-Saharan migrants.”
The businessman, who is familiar with African nations, cites “a rather delicate position” and “mistrust of Tunisian products” in certain countries, such as Mali, Burkina Faso and Guinea, despite the “very limited” economic repercussions.
“Strategically, Africa remains a niche for a few Tunisian companies in key sectors, such as construction and public works, agri-food and insurance,” says Bassem Ennaifer, a financial analyst. According to data from the Centre for the Promotion of Exports (CEPEX), nearly 800 Tunisian companies export to sub-Saharan Africa, with more than 1,000 different products.
Tunisia’s trade with sub-Saharan Africa represents only 3% of its total exports. In 2022, the country generated DT1.5bn (nearly $500m), from its main sub-Saharan trading partners: Côte d’Ivoire (15%), Senegal (12%), Guinea (7.2%), Cameroon (6.8%) and Burkina Faso (5.6%). “Efforts are underway to increase the share of Tunisian exports to sub-Saharan Africa to 5% by 2025, and even more in the years to come,” says Mourad Ben Hassine, CEPEX’s managing director.
Looming sugar crisis as shortage hits COMESA market (KBC)
Sugar prices are expected to rise further in the coming months due to an acute shortage of the commodity in the COMESA market. This comes amidst a ban on sugarcane milling in Western Kenya and the Nyando Sugar belt with fears that the prices could jump further amidst high demand. Agriculture and Food Authority (AFA) Chairman Cronelly Serem said the closure of mills in the affected regions was occasioned by a shortage of sugarcane.
The ban which ends in December 1, 2023, he said targets to ensure the millers have enough cane to crush to help the country bridge the shortage of the sweetener. Serem attributed the shortage to a prolonged dry spell early in the year and lack of proper cane development programmes by millers.
Companies which were licensed to import sugar to address the shortage, he said were experiencing difficulties due to the shortage of the commodity in the COMESA market. Kenya relies heavily on imports mainly from the COMESA region to bridge the local sugar deficit. “We will continue to experience a shortage of the commodity on the shelves since there is no sugar in the COMESA region,” he said.
Africa must collaborate on green energy agenda (SAnews)
Minister in the Presidency for Electricity, Dr Kgosientsho Ramokgopa, says intra-Africa collaboration will be important in the drive towards decarbonisation and strengthening energy security on the continent. The Minister was addressing the UNESCO 9th Africa Engineering Week held in Gauteng on Tuesday.
“The power pool on the SADC [Southern African Development Community] side is essentially matured (sic). I’m told that there is a similar power pool that is taking shape on the eastern side and the western part of the continent. I think that once we pool all of that together, we are going to get to a situation where we are going to exploit the opportunities that are presented.”
The minister further emphasised that because of its rich endowment in resources that are essential to the green economy, Africa must set its own standards. “What drives us is the quest to ensure that we industrialise on the back of these renewable resources [and] on the back of the demand that is coming from the major western countries.”
East, Central Africa experts discuss regional value chain (New Business Ethiopia)
To discuss sub regional value chain, the Meeting of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) by the United Nations Economic Commission for Africa (UNECA) Sub-Regional Offices for Central and Eastern Africa opens today in Bujumbura, Burundi. In his opening remark Prime Minister of Burundi, Gervais Ndirakobuka indicated that the war in COVID-19 and Ukraine crisis have impacted African economy including affecting tourism, increasing fuel and food prices among others. He stated that developing regional value chain requires a combination of effort between and among the countries to harmonize policies and strategies so that our national resources benefit the people brining sustainable development.
This year’s meeting is themed, “Establishing Central and Eastern Africa as sources of quality products and investment destinations of choice to accelerate industrialization and economic diversification, and to strengthen food security”. Commenting about the theme of the year “…This will be an opportunity for the region to reduce poverty and enhance the livelihoods and standard of living of the people in the region,” said Dr. Hanan Morsy, Deputy Executive Secretary and Chief Economist at UNECA.
European Union Collaborates With The Republic Of Djibouti For Regional And Continental Economic Integration In Africa (Africa.com)
The European Union (EU) is partnering with the Republic of Djibouti and the African Alliance for e-commerce to organise the ongoing 9th edition of the International Single Window Conference taking place in Djibouti from September 25 to 26, 2023. This conference highlights some of the investment opportunities and ongoing developments throughout the African continent that will enhance the efficiency of trade globally. The EU is supporting efforts in the region that will boost regional economic integration and facilitate regional trade aligned with the objectives of the African Continental Free Trade Area (AfCFTA).
A key action under this partnership is the EU support to the Horn of Africa Initiative’s strategy, collaborating with the governments of the Republic of Djibouti and the Federal Democratic Republic of Ethiopia. The EU has committed €32 million to a programme dedicated to “Promoting regional economic integration in the Horn of Africa through the development of the Djibouti corridor” implemented by Agence Française de Développement (AFD) and the aid-for-trade organisation TradeMark Africa (TMA).
The programme is aiming at improving the effectiveness and efficiency of one of the most active economic corridors in Africa while promoting inclusive trade. This is achieved through trade processes digitalisation in government agencies to shorten the time required to get trade documents and accelerate the transit of goods along the corridor – from the Port of Djibouti to Addis Ababa, Ethiopia’s capital. Electronic Single Windows and cargo tracking systems are examples of such digital interventions.
Europe Lines Up African Minerals Pacts to Ease Reliance on China (Bloomberg BNN)
The European Union is finalizing partnerships with the Democratic Republic of Congo and Zambia to boost local industries as the bloc competes with China to secure critical materials for the green and digital sectors. A planned memorandum of understanding will signal to both governments and the private sector the EU’s backing for developing local value chains given that a big part of the processing of critical materials, including lithium or cobalt, currently takes place in China, people familiar with the matter said.
The EU is aiming to diversify suppliers of key resources and to counter China’s massive infrastructure investments in regions including Africa. The bloc has signed similar deals with Canada, Kazakhstan, Namibia, Ukraine, Argentina and Chile, and is also exploring accords with Rwanda and Uganda. The EU plans to sign the partnerships during a forum of the Global Gateway, the EU’s €300 billion ($317 billion) investment program, in Brussels on Oct. 25-26, said the people who asked not to be identified because the discussions are private. The meeting will bring together leaders from the EU, other countries and European business executives.
“The EU wishes for a partnership for strategic primary materials, which the DRC accepted,” Wameso said in a text message. A Zambian official did not immediately reply to a request for comment.
Bold global action needed to decarbonize shipping and ensure a just transition: UNCTAD report (UNCTAD)
UNCTAD has called for a “just and equitable transition” to a decarbonized shipping industry in its Review of Maritime Transport 2023 launched ahead of World Maritime Day (28 September). The agency highlights the pressing need for cleaner fuels, digital solutions and an equitable transition to combat continued carbon emissions and regulatory uncertainty in the shipping industry.
The shipping industry accounts for over 80% of the world’s trade volume and nearly 3% of global greenhouse gas emissions, with emissions escalating by 20% in just a decade. UNCTAD Secretary-General Rebeca Grynspan said: “Maritime transport needs to decarbonize as soon as possible, while ensuring economic growth. Balancing environmental sustainability, regulatory compliance and economic demands is vital for a prosperous, equitable and resilient future for maritime transport.”
Extensive UNCTAD agenda at the UN General Assembly 2023 (UNCTAD)
UNCTAD Secretary-General Rebeca Grynspan and other world leaders promoted a global rescue plan for the Sustainable Development Goals (SDGs) during the high-level week of the 78th session of the UN General Assembly, from 18 to 26 September. Currently at the halfway point towards achieving them by 2030, only 15% of the SDG targets are on track and many are going in reverse.
On 20 September, Secretary-General Grynspan spoke at the SDG Media Zone, where national leaders, influencers, activists, experts and media partners highlighted actions and solutions in support of the SDGs. The session examined the ongoing crisis of global debt, which reached an all-time high of $92 trillion in 2022.
A recent UN report flagged that 37 out of 69 of the world’s poorest countries were either at high risk or already in debt distress, while highlighting the inherent inequality in the international financial system. The report found that developing countries on average pay four to eight times more in interest rates than developed ones.
Turning to solutions, Secretary-General Grynspan outlined the “very concrete things” the world can do to rev up investment, debt restructuring, and liquidity and contingency funding for developing countries. She echoed calls from UN chief António Guterres for an SDG Stimulus of at least $500 billion a year to bolster sustainable development and climate action.
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A slice of opportunity: Benin joins China’s fruit export market (Ventures Africa)
The recent visit of Benin’s President Talon to China did not hit many international headlines. However, it was particularly interesting for Africans because during the visit he secured a new agreement granting permission to export the West African nation’s fresh pineapples to China. Alongside Kenyan, South African and Tanzanian avocados, Rwandan chilis, South African citrus fruits, and Tanzanian soybeans – Beninese pineapples are joining a rapidly growing list of fresh products that are finally allowed to be exported to the Chinese market.
Although this is a huge success on paper, there are many challenges to overcome if Benin is to really capitalise on this deal.
Tanzania buys gold in new move to bolster foreign reserves (The East African)
The Bank of Tanzania (BoT) has started a large gold-buying initiative as part of a strategic drive to support the expansion of the mining industry and strengthen foreign exchange reserves. Under the initiative, BoT has already acquired and refined 418 kilogrammes of gold.
“As highlighted in the budget by the Minister for Finance Dr Mwigulu Nchemba, the government has allocated funds for the purchase of gold. This year, our target is to procure six tonnes of gold, both from small-scale, middle-scale, and large-scale miners,” he said. He also said BoT purchases gold to diversify the country’s foreign exchange reserve and reduce reliance on a single currency.
This diversification intends to safeguard Tanzania’s wealth against currency devaluation or economic stability caused by global shocks. “Now for the first time, we have both a gold and dollar reserve. Previously, we only had the US dollar as a foreign exchange reserve,” he added. During recent months, Tanzania just like other economies, has been adversely affected by a decision by America’s Federal Reserve to embark on aggressive rate hikes as a measure to fight domestic inflation in the US economy.
This has seen various central banks around the world embark on measures that have resulted in a reduction in the amount of dollars in circulation and a steep depreciation of their domestic currencies, resulting in a rise in the prices of imported goods and products, including petroleum.
Fixing local value chains key to transforming food systems (Nation)
“Due to poor local market prices against the ever-rising cost of inputs, coupled with devastating climatic conditions, we as smallholders are forced to invest with a lot of caution because many are times when we end up with losses,” said Kenneth Kurui, a smallholder wheat farmer in Narok County, who also works in Nairobi to supplement his wheat farming venture.
However, the recently released 2023 Africa Agriculture Status Report (AASR) points out that there is still a window of hope for smallholder farmers like Kurui, but only if governments puts in place policies that are friendly to local agro-processing and also if the leaders embrace the African Continental Free Trade Area (AfCFTA).
“Unless we put in place correct policies that will favour local manufacturing, we will continue talking about cocoa in Ghana and Chocolate from Switzerland,” said Mohammed Dewji, President of MeTL Group of Companies in Tanzania.
Beyond value addition, the AASR calls for lowering of trade costs through strengthening regional trade infrastructure such as transport networks, trade finance and telecommunications and eliminating non-tariff barriers. This, says the report, will facilitate access to cheaper inputs and allow small and medium entrepreneurs to participate in bits and parts of a production process that provides affordable food to African consumers.
Bujumbura hosts ECA Regional Intergovernmental conference of Senior Officials and Experts (UNECA)
A four-day meeting of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) for Central and Eastern Africa, jointly organized by the UN Economic Commission for Africa (ECA) and the Government of Burundi, opens on 26 September in Bujumbura, the Economic city of Burundi. This annual meeting will bring together ministers and high-level policymakers, international organizations, private sector actors, youth representatives, UN officials, academics and media practitioners, and will focus on the theme: “Establishing Central and East Africa as Sources of Quality Products and Investment Destinations of Choice, to Accelerate Industrialization and Economic Diversification, and to Strengthen Food Security”.
According to Mama Keita, ECA Director in Eastern Africa, the Bujumbura meeting will discuss food insecurity because climate change, high food prices, and supply chain disruptions cause hunger and malnutrition for millions in Central and East Africa . Mama Keita says that the meeting will look at the barriers to food security and the potential of digital food platforms, which can help producers, consumers, and traders exchange food products and information more easily and cheaply.
The ICSOE will propose policies, strategies and options for implementing a “quality culture” and promoting intra-African trade in order to increase the quantity and quality of production in the region so as to strengthen food security, promote economic diversification and attract more investment.
Nigerian gov’t advocates open, secure internet (Premium Times Nigeria)
The Nigerian government has subscribed to a free and secure internet for Africa, which is capable of bridging the digital divide and creating innovative opportunities within the continent. Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, who canvassed this position at the just-concluded Africa Internet Governance Forum at the Transcorp Hilton, Abuja, said the administration of President Bola Ahmed Tinubu is committed to engendering necessary collaborations and international dialogues to achieve these objectives.
The Minister, who addressed the forum virtually, said Nigeria, as the largest telecommunications market in Africa, is conscious of all the dynamics of emerging technologies around internet usage and would continue to work with countries in Africa on different fronts to ensure that the Internet is effectively governed so its innumerable resources can be leveraged for citizens and nation’s growth.
“The need for our consistent collaboration to develop our economy collectively is preeminent in the agenda of the current administration in Nigeria. It is through this kind of forum that we can bridge the digital divides, enhance cybersecurity, ensure digital rights and foster innovation. It is, therefore, our collective duty to ensure that the internet remains open, safe and beneficial for all,” Tijani told parliamentarians and other participants from Africa who attended the forum in Abuja.
This year’s edition of the AfIGF with the theme: “Transforming Africa’s Digital Landscape: Empowering Inclusion, Security and Innovation”, which took place at the Congress Hall of Transcorp Hilton, Abuja, provided yet another veritable platform for African countries to discuss germane issues that will pave the way for the development of a more robust digital economy in the continent.
Unstoppable Africa 2023: Shaping a Future of Prosperity and Innovation (Global News Network Liberia)
Unstoppable Africa 2023 has concluded, leaving a profound mark on the African continent. The two-day Global Africa Business Initiative (GABI) event aims to boost Africa’s standing in the global economy and establish the continent as the foremost destination for business, trade, and investment. This transformative gathering on the sidelines of the UN General Assembly has not only chartered the course for economic growth but has also solidified GABI’s pivotal role as a catalyst for change and progress.
On the second day of the event, Caroline Wanga, CEO of Essence Ventures, emphasized the importance of authentically portraying African narratives. She highlighted that the continent’s rich heritage has traditionally been expressed through its unique storytelling methods. Wanga stated, “In discussing Africa, it’s vital to engage in genuine dialogue. We’ve celebrated our heritage through our distinct method of storytelling, which the world is longing for now more than ever. As the overseer of Essence Ventures and other platforms, I am committed to ensuring our tales are told from a position of strength and authenticity.”
The event concluded with inspiring remarks from UN Deputy Secretary-General Amina J. Mohammed, highlighting the importance of collective action in realizing Africa’s potential and achieving sustainable development. She called for unity and support from the global community and the private sector. She closed by emphasizing that this is just the beginning of a new chapter in Africa’s story, one marked by sustainable economic growth, empowerment, and the realization of the continent’s full potential.
UNGA78: Tinubu commits to promoting ease of trade for SMEs in Africa (Daily Nigerian)
President Bola Tinubu has restated his administration’s commitment to promoting ease of trade for Small and Medium Enterprises, SMEs, across Africa. Mr Tinubu stated this during the Africa International Trade Exhibition, AITE 2023’s Business, Trade, and Investment Summit at the sideline of the 78th edition of the United Nations General Assembly, UNGA, in New York, USA.
In his remarks, the Minister of Aviation and Aerospace Development, Festus Keyamo, urged both foreign and local investors to take advantage of Nigeria’s huge population, traffic, and thriving aviation market, to invest in the sector.
“We want to have industries in Nigeria to process and manufacture our raw materials in the country to give job opportunities to our youths and women. “To continue allowing our raw materials to be exported and paid next to nothing for it will continue to keep our people in poverty. We want Nigeria to change the way they have been doing business. “We are confident that the outcomes of this gathering will have a lasting impact on the economic landscape, not only in Nigeria but also across the globe,” Ms Musa, who is the author of ‘The Audacity of an African Girl’ and President of the Arewa Development Support Initiative, ADSI, said.
AfCFTA: National Quality Council Task Agric Stakeholders on Global Standards (This Day Live)
The National Quality Council (NQC) has charged agricultural stakeholders in the cassava value chain to adhere strictly to global standards in their quest to benefit from the Africa Continental Free Trade Agreement (AfCFTA). The Chairman of NQC, Mr. Osita Aboloma, explained the need for Nigeria to take optimum advantage of the opportunity provided by the hosting of the implementation of the AfCFTA in view of the federal government’s recent declaration of a state of emergency on food security.
Earlier in his welcome address, the Director General, SON, Mr. Farouk Salim, enthused that SON played a pivotal role in ensuring quality, safety and competitiveness of Nigeria’s agricultural produce including cassava and its derivatives. Salim stated that his organisation provided a solid foundation for innovation, trade facilitation and consumer protection, while also enabling market access and enhancing the reputation of the nation’s products on the global stage.
He assured the gathering of SON’s commitment towards the conference, particularly in ensuring that requisite Nigerian Industrial Standards are made available for all derivatives of cassava for local consumption as well as export.
Climate change ‘being increasingly felt with greater ferocity’ – Ramaphosa (Moneyweb)
The recent catastrophic floods in Libya are a stark reminder of the extreme vulnerability of developing economy countries to the effects of an ever-changing climate. Many other countries on the African continent are just as vulnerable. Despite carrying the least responsibility for global warming, Africa is warming faster than the rest of the world.
I have just returned from the United Nations General Assembly in New York where climate change was a major focus of discussion. There is growing concern that the international community is falling significantly short on meeting the goals contained in the Paris Agreement to combat climate change.
Although developed economy countries promised to support developing economies as they transition to low-carbon, climate resilient societies, this support has not been forthcoming at the scale and with the urgency that is needed.
As African countries, we cannot be bystanders to our own development. We are putting the necessary measures in place to decarbonise our respective economies while pursuing sustainable development. The transformation of the energy landscape in Africa is a priority.
This needs to take place alongside increased investment in smart, digital and efficient green technologies in carbon-intensive sectors such as transportation, industry and electricity.
Securing Africa’s future beyond Agoa (Business Daily)
Simplifying trade procedures is pivotal to benefiting businesses and propelling economic growth by amplifying exports, job opportunities, and competitiveness. The African Growth and Opportunities Act (Agoa) is a great example of a beneficial programme for the continent.
Agoa is a cornerstone in preferential trade that empowers sub-Saharan African nations to export numerous products to the US market without tariff impositions, providing a more stable avenue for development compared to traditional aid methods.
It has played a pivotal role in bolstering economic growth across African nations. Presently, almost 44 African countries benefit from Agoa’s preferences, invigorating essential sectors such as agriculture, textiles, and apparel. Notably, US apparel imports from Agoa beneficiaries have risen from $953 million in 2001 to $1.4 billion in 2021 according to the US ITC 2023 Report. This growth is primarily attributed to countries such as Kenya, Ethiopia, Ghana, Madagascar, Mauritius, and Lesotho.
As global players seek diversification beyond Asia, Africa has significant potential to capitalise on this trend.
In June 2023, the United Nations Conference on Trade and Development (UNCTAD) released a comprehensive report assessing Agoa’s impact titled The African Growth and Opportunities Act; Limitations, Utilization, and Results’. It underscores the varying effects of preferential market access based on exporting countries and specific sectors.
Ukraine makes food offers to counter Russia in Africa (The East African)
Kenya and South Africa may play a major part in the establishment of a “grain hub” on the continent after the politics of Russia-Ukraine war took centre stage during the 78th session of the United Nations General Assembly (UNGA) in New York. At the core of the battle is US grain exports to Africa, which include 9,000 tonnes of wheat and 25,000 tonnes of maize. Ukrainian exports for the whole 2022/23 season stood at almost 49 million tonnes, exceeding the previous season’s level of 48.4 million tonnes.
For the second year in a row, the annual debate at the UN General Assembly is “darkened by the shadow of war, an illegal conquest brought without provocation by Russia” against Ukraine, he said, expressing strong support for Kyiv.
Caught in the war of words are African countries whose loyalty has been torn between the two superpowers, for food.
While Kenya had started as one of Africa’s most prominent supporters of Ukraine after Russia’s invasion, South Africa has maintained a more neutral stance. Now, Kenya says it backs an African Union proposal to end the war peacefully.
“We are not waiting; we are continuing the Black Sea Grain Initiative and trying alternative routes. Several ships with grain have already successfully passed through these routes despite the difficult situation,” the President of Ukraine emphasised when he met Ramaphosa on the outskirts of the UNGA in New York.
Working group on food security reviews coordinator’s report, discusses way forward (WTO)
The Committee on Agriculture Working Group reviewed on 21 September the report of the coordinator on food security, with the aim of advancing discussions on the food crisis and moving towards consensus on recommendations to be issued by November 2023. The meeting was chaired by Mr Kjetil Tysdal of Norway, the current coordinator of the food security work programme, who took over from Mr Marcel Vernooij of the Netherlands in July.
The coordinator’s report focused on four areas: access to international food markets; financing of food imports; agricultural and production resilience of least-developed and net food-importing developing countries (LDCs and NFIDCs); and horizontal issues. Several members expressed support for the report and its recommendations, highlighting its “balanced nature” and describing it as a strong foundation for reaching an agreement. Some other members considered that the report lacked sufficient emphasis on flexibilities for developing economies to address the immediate and short-term concerns arising from the food crisis.
Trade and Gender co-chairs outline joint work with MSMEs Group for women entrepreneurs (WTO)
At a meeting of the Informal Working Group on Trade and Gender held on 22 September, the co-chairs reported on their joint work with the Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs Group), the WTO Secretariat and the International Trade Centre to create a compendium of initiatives that promote financial inclusion of women entrepreneurs. The co-chairs, the MSMEs Group, and the Trade and Environmental Sustainability Structured Discussions (TESSD) will hold a workshop later this month.
The “Compendium of Financial Inclusion Initiatives” currently being prepared will identify financial measures initiated by governments, national and regional development banks, as well as international organizations, to support small-scale businesses run by women entrepreneurs, said Ambassador Simon Manley of the United Kingdom, co-chair of the Informal Working Group on Trade and Gender. The objective is to “make this compendium available to all members, once finalised, as a policy tool and a model when developing financial inclusion schemes for female entrepreneurs,” he said.
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Mombasa harbour customers cry foul over ‘illegal’ levies (The East African)
Mombasa port users are worried that rampant flouting of maritime regulations by some shipping lines in cahoots with port officials puts at risk the port’s standing as main gateway to East and Central Africa. They claim that some shipping lines have introduced arbitrary charges without the approval of the Kenyan Maritime Authority (KMA), with some charging up to $1,200 for a 40-feet container, more than what Tanzania’s Dar es Salaam port charges.
This has been blamed for the sustained flight of customers, resulting in a decline in cargo throughput in Kenya. The cargo handled through Mombasa in 2022 shrank 1.9 per cent to 33.9 million metric tonnes, from 34.6 million tonnes in 2021, despite container traffic increasing marginally to 1.45 million 20-feet equivalent units.
Mombasa feeds the Northern Corridor, which stretches about 1,700km from the port through Kenya, Uganda, Rwanda, Burundi and the eastern Democratic Republic of Congo (DRC).But the port stands to lose out to the 1,300km Central Corridor, which runs from Dar es Salaam through Tanzania mainland to Rwanda, Burundi, Uganda and eastern DR Congo due to the punitive charges.
Kenya, UK in new pact to strengthen growing trade ties (The Standard)
Trade and Investment Principal Secretary (PS) Abubakar Hassan has pledged Kenya’s commitment to working with the United Kingdom (UK) government to strengthen bilateral ties between the two countries. The PS said the signing of a memorandum of understanding between the ministry and the British Chamber of Commerce Kenya sets up the framework for further cooperation between the two countries.
UK Prime Minister’s trade envoy to Kenya Theo Clarke said the partnership between the two countries would not only promote investments locally but also see the creation of thousands of jobs for Kenyans. June Chepkemei from the Kenya Authority Investment said investors can now access most of the services offered by the agency under one roof.
Mombasa steps up CCTV coverage to revamp trade (Business Daily)
Mombasa County plans to increase security surveillance as part of a strategy to boost the region’s business climate credentials. The county administration said it will install an integrated smart city surveillance system covering all public areas and key installations and properties.
“The objective of the service is to enhance public safety and security within the county, improve emergency response, optimise city services, support city planning, and development, and thereby elevate Mombasa County as a safe tourism and business hub in Kenya and the region,” it said in a tender call to provide the surveillance system.
Dollar Shortage Sparks Concerns Among Oil Marketers Over Fuel Importation (Investors King)
Expectations soared when oil marketers championed the removal of fuel subsidies and deregulation of Nigeria’s downstream sector. However, months after the removal of subsidies and deregulation, concerns are growing about the potential resurgence of the country’s perennial fuel scarcity.
While President Bola Tinubu’s pronouncement in May marked the end of fuel subsidies, the Nigerian National Petroleum Company Limited (NNPCL) still monopolizes petrol importation despite the anticipated influx of independent oil marketers. Emadeb Energy imported 27 million liters of petrol in July, but since then, independent marketers have struggled to secure imports, leaving NNPCL as the sole importer. This monopoly undermines the sector’s deregulation, enabling NNPCL to set prices, raising concerns of renewed fuel scarcity.
Formulate policies to encourage local sourcing of raw materials – Fan Milk MD (BusinessGhana)
Mr. Yeo Ziobeieton, the Managing Director of Fan Milk Ghana, has appealed to governments in West Africa to implement policies that would encourage industries to source local materials to help build sustainable supply chains. He said the disruptions in global supply chains occasioned by the COVID-19 pandemic had emphasised the need to build adaptable local supply chains to ensure a consistent supply of high-quality raw materials.
Speaking at the opening of the 2023 Ghana Industrial Summit and Exhibition in Accra on Monday, Mr Ziobeieton said resorting to local alternatives would empower local producers of raw materials to scale up their production and create employment opportunities in host communities. He said the effective collaboration between the government and the private sector would play a pivotal role in reducing dependency on the global supply chain for raw materials.
Afreximbank urges prioritisation of export trading companies to drive African SME participation in global trade (Afreximbank)
The African Export-Import Bank (Afreximbank) has called on African countries to prioritise the development of public and private export trading companies (ETCs) in order to position the continent’s small and medium enterprises (SMEs) to participate effectively in global trade.
In an address to the Africa International Exhibition, which opened yesterday on the sidelines of the United Nations General Assembly in New York, Mrs. Kanayo Awani, Afreximbank’s Executive Vice President, Intra-African Trade Bank, speaking on behalf of Bank President Prof. Benedict Oramah, said that SMEs participating directly in global trade faced stiff competition from multinational and significantly large corporates, making their chances of success or survival marginal, if not zero.
She said that the limited participation of Africa’s SMEs in global value chains reflected institutional policy failure and called for strong policy support systems that would provide capacity developments, incipient protections from unfair competition and improved access to regional markets and access to finance.
UBA Partners AfCFTA on $6bn Financing Solutions For SMEs in Africa (Arise News)
The United Bank for Africa (UBA) Plc has announced an initiative aimed at providing robust and comprehensive financing solutions to support and boost activities of small and medium scale enterprises (SMEs) across Africa. A statement from the bank yesterday, explained that the financing initiative would be powered by UBA’s recent partnership with the African Continental Free Trade Area (AfCFTA) secretariat to provide financing for up to $6 billion over the next three years to eligible SMEs across Africa, an agreement which was signed on the sidelines of the 30th Afreximbank Annual Meeting (AAM) which was held in Accra, Ghana.
SMEs in the particular sectors of agro-processing, automotive, pharmaceuticals, transport and logistics would be able to access a working capital loan by way of overdrafts and short-term loans with a maximum value of $120,000 in each of their country’s local currency; and asset finance loan of up to $120,000 in the local currency of the obligor, to use for the acquisition of operational assets and equipment to meet their business expansion needs.
CS Owalo meets digital tech thought leaders, industry stakeholders in preparation for Connected Africa Summit 2024 (Capital News)
Information, Communications and the Digital Economy Cabinet Secretary Eliud Owalo on Monday unveiled the Connected Africa Summit 2024. The Continental Summit will build on the gains of Connected Kenya Summit which has run for the last 12 years under the auspice of the ICT Authority. The summit, scheduled for 2nd – 5th April next year, seeks to drive Africa’s access to ICT and Innovation as it opens up for intra-Africa trade through the African Continental Free Trade Agreement (AfCFTA) focusing on the digital economy.
Speaking during the Post Connected Summit Breakfast, CS Owalo reaffirmed the Ministry’s support of the event and indicated that the launch was timely and historic for the continent’s digital partnerships, integration and development.
“As you are aware, the world is now a small global village because of technology. The Connected Summit 2024 will be an opportunity to share ideas as a continent. The Summit will further create a learning platform for Africa in the technology space so that we learn from each other and also embrace the best-case scenarios,” said the CS.
EAC urged to establish strategic partners (Tanzania Daily News)
The tenth Edition of the East Africa Internet Governance Forum (EA-IGF) has called on Information, Communication and Technology (ICT) experts in the region to take proactive steps towards ensuring that the internet continues to be a force for positive change in the region.
Jointly hosted by the East African Community and Rwanda Ministry of ICT and Innovation through the Rwanda Internet Community and Technology Alliance (RICTA), the Forum was convened under the theme: The Internet We Want – Empowering All People in East Africa. The theme is in line with the over-arching global Internet Governance Forum 2023 theme: The Internet We Want.
Rwanda’s Permanent Secretary, Ministry of ICT and Innovation, Mr Yves Iradukunda, said the internet was critical in facilitating the region’s vision of transforming into a digital economy and in doing so, the region must employ a multi-sectoral approach to ensure the people of the region are empowered by the internet. “To create the internet we want, we must ensure that it is accessible to all and that it is not too expensive. We must therefore work towards ensuring access to the internet is affordable by taking advantage of the power of competition,” said Mr Iradukunda.
“As we develop locally relevant content, as sector experts and other stakeholders, we must work together to push for development of global regulations that facilitate development of digital economies,” added the Permanent Secretary.
Africa’s food insecurity to be non-existent in the next 5 years (Business Insider Africa)
The $25 billion food security goal of the African Development Bank (AfDB) is “well on track,” according to AfDB President Akinwumi Adesina, whose organization supports programs in over 30 African nations that have contributed to the production of almost $12 billion worth of food.
“As far as I’m concerned, we shouldn’t be talking about food security in Africa more than five years from now. There’s no reason for it,” the AfDB president disclosed to the American news agency, Reuters. “We have the technology and the financing to do it at scale,” he added.
According to the report following the news agency’s discussion with the AfDB president, “Russia’s February 2022 invasion of Ukraine, one of the world’s top grain exporters, sent tremors through global grain markets, threatening food supplies for some of the most fragile nations, including many in Africa.”
Adesina brought up the expansion of special agro-industrial processing zones, which in Nigeria alone might increase from covering eight states to 35 after a recent request, during her remarks on the sidelines of the UN General Assembly sessions in New York. These are rural regions where infrastructure development is being prioritized in order to attract food and agricultural businesses.
African renewable energy localisation: Boosting global competitiveness (Moneyweb)
Despite the urgency to transition from traditional power production to sustainable alternatives – not only as it reduces environmental impact but also fosters local economic growth – wealthier nations across the globe are leading the shift while some countries, such as South Africa, are lagging.
Of crucial importance is to adapt existing products and engineering offerings to meet the demands of the renewable energy industry, with innovations such as online condition monitoring that can improve the efficiency and reliability of renewable energy projects, paving the way for a sustainable future.
South Africa has homegrown skills and resources in renewable energy, which could be harnessed and nurtured to overcome South Africa’ lag in the renewable energy space. Furthermore, these skills and resources could be exported to the rest of the continent to work with other African countries to shape a greener and more resilient future – unlocking economic benefits for South Africa and Africa.
However, to successfully develop South Africa’s domestic manufacturing capabilities and reduce the African region’s dependence on foreign suppliers, a comprehensive approach is vital with companies providing end-to-end services, including product supply, installation, and maintenance, to ensure a smooth transition to sustainable energy sources.
African nations turning serious about its cargo airports (Africa Aviation News)
While agreeing that Africa’s share in the market is too low, Bonface Muse, senior commercial officer, cargo, Kenya Airports Authority, also points out an important metric which is the intra-Africa trade and air cargo movements. As he said, “Air cargo in Africa is still less developed. We are way behind the global market. Especially, we have very little intra-Africa trade. Even at our leading airport Jomo Kenyatta International Airport in Nairobi, the business is mostly outbound to Europe, Asia and the Middle East and intra-Africa is a small percentage. The outbound is mostly fresh produce like flowers, fruits, vegetables, meat and fish.”
“African airports serve as important transportation hubs that link countries in the continent to one another and to the rest of the world. African airports are key for facilitating trade, and tourism, boosting economic development and linking people between Africa and the rest of the globe. Africa as a continent faces limitations in terms of airport infrastructure, system and policy compared to other developing continents. The air connectivity between airports is also lower thus creating a gap in what the continent could have achieved,” he said.
What is fueling the growth of cargo charter demand in Africa?
Okonjo-Iweala: We Have Seen Upsurge in Number of Countries Seeking to Join WTO (This Day Live)
Going into the MC13, there is also an atmosphere of pessimism, the world is fragmenting and we found some evidence of some of that in our Global Trade Report. But, we are not at the point where our trading system is falling. And the point we are trying to make is that for our MC13, let’s concentrate on things that our multilateral trading system can deliver. What are the deliverables? So, going into MC13, we are looking at several things.
We also have to deliver on the development agenda. Developing countries are expecting to get some benefits out of the WTO and they have tabled several demands that they would like to see... We are also looking at accessions. There are many countries coming to the WTO wanting to accede, who are not members. That is very exciting. People don’t come to join you if they think you are not doing well. Now, we have seen an upsurge and we may deliver two at the MC13. But we have about six countries that are really working hard to join.
Addressing the opening ceremony of the launch of the 2023 Africa SDGs Report in a video call, the AUC Deputy Chairperson, Dr Monique Nsanzabaganwa underlined that, the 2023 Africa SDGs Report is a living testimony that both organizations are committed “to talking the talk and walking the walk together”. She added that, this report is the result of a collaborative effort between the African Union, the United Nations, and other Regional and International partners, stressing that, the SDGs Report provides a comprehensive and balanced assessment of the progress, challenges, and opportunities for achieving the African Union’s Agenda 2063 and the Sustainable Development Goals in Africa.
“While we celebrate the remarkable achievements that Africa has made, we are soberly reminded that more needs to be done in some areas. Towards this end, the report has identified key drivers of change to accelerate the continent’s transformation, such as industrialization, digitalization, innovation, regional integration, and green transition
The report further offers a set of policy recommendations to help African countries overcome structural challenges and achieve sustainable development. These include strengthening governance and institutions, mobilizing domestic and external resources, enhancing social protection and inclusion, and building resilience to shocks,” underscored the AUC Deputy Chairperson.
India, 79 others seek support for WTO food security deal (The Economic Times)
An 80-country coalition including India, China and South Africa has begun reaching out to Arab countries and least-developed nations to build pressure on the developed economies to ensure food security for developing nations. The alliance of G33, African Group and the ACP (African, Caribbean and Pacific) group at the World Trade Organisation (WTO) has proposed a new method to calculate subsidies given to purchase, stockpile and distribute food to ensure food security for developing and poor nations.
It has also proposed that exports of foodgrains from public stocks to needy countries be allowed for international food aid and humanitarian purposes. The alliance is keen to get more support for its proposals, officials said. The coalition has suggested that a permanent solution for public stockholding should account for inflation and be based on a recent reference price.
Investment Facilitation in International Investment Agreements: Trends and Policy Options (UNCTAD)
New-generation international investment agreements (IIAs) are increasingly embracing investment facilitation features. These features are becoming more common, more diverse and more specific, with prominent examples across all continents.
Some new-generation IIAs also contain references to technical assistance or to facilitation measures targeted at investment for sustainable development. Yet, much more is needed. Save for a few exceptions, new IIAs continue to lack clear and proactive investment facilitation commitments specific to sustainable investment or the necessary level of technical assistance and capacity-building for developing countries.
The African Development Bank President, Dr Akinwumi Adesina, has said the global financial architecture constrains Africa’s development. He recommends five ways it can be made fairer.
Speaking at a high-level roundtable—Towards a Fair International Financial Architecture—at the 78th United Nations General Assembly last week, Adesina said the international financial architecture was not delivering the scale of resources needed to allow Africa to achieve its growth and development priorities. He said Africa faced a financing gap of $1.2 trillion through 2030 to finance its Sustainable Development Goals.
He said the second constraint was that the international financial architecture was not providing climate financing at the scale needed for Africa to adapt to climate change. Adesina said: “Africa contributes only 3% of global emissions and suffers disproportionately from climate change, losing $7–15 billion annually. This figure is expected to rise to $50 billion by 2030. Yet, Africa faces a climate financing gap of $213 billion annually through 2030.”
The third constraint, the Bank chief noted, was that the current international financial architecture made debt restructuring too complex to achieve, since debt restructuring is disorderly, protracted, and costly. He explained that this poses serious risks for African countries facing debt distress.
After U.N. meeting, countries brace for COP28 fossil fuel fight (Reuters)
With two months left until the U.N.’s COP28 summit, countries are far from bridging the gap between those demanding a deal to phase out planet-warming fossil fuels and nations insisting on preserving a role for coal, oil and natural gas.
The COP28 conference in Dubai scheduled between Nov. 30 and Dec. 12 is seen as a crucial opportunity for governments to accelerate action to limit global warming, yet countries remain split over the future of fossil fuels - the burning of which is the main cause of climate change. Meetings at the United Nations General Assembly (UNGA) last week reignited the long-rumbling debate, with climate-vulnerable nations like the Marshall Islands pleading for wealthier ones to quit polluting fuels and to invest in renewable alternatives.
Other countries that produce or rely on fossil fuels emphasised the potential use of technologies to “abate” - meaning capture - their emissions, rather than ending the use of such fuels completely.
Saying that “the phase down of fossil fuels is inevitable,” the United Arab Emirates’ incoming COP28 President Sultan Al Jaber told the summit: “As we build an energy system free of all unabated fossil fuels, including coal, we must rapidly and comprehensively decarbonize the energies we use today.”
How Reform Can Aid Growth and Green Transition in Developing Economies (IMF)
Many emerging market and developing economies face threats to economic growth and limited policy space due to high inflation, rising debt, and balance of payments pressures. These challenges mounted during the pandemic and were further intensified by Russia’s war in Ukraine.
Slower growth and constrained capacity to support their most vulnerable people expose some of these countries to substantial social instability risks. At the same time, these economies face the conundrum of participating in global efforts to reduce their carbon emissions and help combat climate change without sacrificing growth and jobs.
Amid such challenges, economy-wide reforms give policymakers the tools to foster growth and prepare for the green transition. As we show in a new staff discussion note, the gains from overhauling institutions and regulations for businesses and people—an enduring IMF recommendation for spurring growth—can quickly materialize even under severe economic strains, provided reforms are properly prioritized and sequenced. And these reforms are key to facilitate the decarbonization of economies.
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Members prepare for line-by-line negotiations on draft fisheries subsidies text in October
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Prince William unveils South Africa’s Abalobi as finalist for Earthshot Prize (Engineering News)
South African community fish catch recording technology company Abalobi has been announced as one of the 15 finalists in the Earthshot Prize for its groundbreaking solution to repair and regenerate the planet. Solving the overfishing problem and restoring fish populations requires the support of local communities who depend on fishing for their livelihoods. Abalobi uses easy-to-scale technology and works with small fishing communities to record their catch data to ensure a fair and improved livelihood from sustainable fishing.
The UK's Prince William launched Earthshot in 2020 as an environmental prize to celebrate and champion the work of innovators focused on solving the world's most pressing global climate challenges. Abalobi, founded by Serge Raemaekers and Nico Waldeck as a non-profit partnership between fishers and scientists, aims to protect small-scale fishing communities and nurture their ocean stewardship, while arming their customers with better information about where their seafood comes from.
Kenya debt stock surpasses $69bn (The East African)
The stock of Kenya’s overall debt has crossed the Ksh10 trillion ($68 billion) mark on increased borrowing during President William Ruto’s first year in office, burdening the taxpayer with more repayment obligations.
New data from the Treasury and the Central Bank of Kenya (CBK) place Kenya’s debt stock at Ksh10.189 trillion ($69.3 billion) at the end of June 2023 in contrast to Ksh8.579 trillion ($58.4 billion) in June last year. The debt stock is also already above the Ksh10.13 trillion ($69 billion) that had been projected for June 2024 — mirroring the faster-than-expected accumulation of public debt and borrowing.
The split of Kenya’s public debt stands in favour of external borrowing at Ksh5.452 trillion ($37.1 billion) against Ksh4.736 trillion ($32.2 billion) in the domestic account.
First avocado consignment gets to India (People Daily)
India has expressed readiness to review tariffs on Kenya avocado exports, High Commissioner to Kenya Namgya Khampa has said. The envoy they have received petitions from Kenya on the tariff on her avocado exports. “Kenya is one of our key trading partners in Africa and therefore we are ready to listen to the appeals for the sake of growing trading among the two countries,” she said.
Kenya’s avocado exports to India are currently charged 30 per cent duty as compared to zero-rated fresh produce from the other East African Community (EAC) states. Globally, Kenya is categorised as a developing nation while EAC partners are classified as Least Developing Nations (LDC) giving them an opportunity to access most of the international market segments duty free.
The Indian government last month approved Kenya’s request to export avocados after notifying the World Trade Organisation (WTO), a new move expected to boost Kenya’s plan to expand her share in the international market. The Avocado Society of Kenya (ASOK) chief executive Ernst Muthomi welcomed the Indian government’s decision to review the export tax, saying it will make fruits from Kenya more competitive in that market.
Morocco: Solar generators offer relief to earthquake-hit villages (ESI-Africa.com)
A sustainable energy company has donated a range of solar generators to earthquake-hit Morocco as rescue and recovery efforts continue in the North African country. Joy Wu, Head of LAMEA & APAC at EcoFlow, said: “These power solutions will play a crucial role in maintaining essential communications, lighting and the storage of food and medicine.”
Call to expedite ratification of legal instruments to advance COMESA integration (COMESA)
COMESA Ministers of Justice and Attorneys General conducted their 26th meeting today in Lusaka, Zambia, with the rallying call for domestication of legal instruments that have been developed over the years by the regional bloc to advance the regional integration agenda. Key speakers at the meeting including the Secretary General of COMESA, Chileshe Kapwepwe appealed to the Ministers to help accelerate the domestication of the instruments, as this has been a challenge.
“As we deepen and widen the integration of the region, there will be need for the development of necessary community laws and policies by your assembly to support and validate the integration,” she said.
Zambia Minister of Foreign Affairs, Hon. Stanley Kakubo, who was the chief guest emphasized the need to expedite the process of implementing statutory instruments and decisions that were agreed upon in previous meetings. “The slowed signing and ratification of legal instruments is unfortunately hampering efforts to advance the programme of integrating the COMESA region as this prevents Member States from unlocking benefits embedded in these legal instruments,” said the Minister.
Nigeria’s trade with Africa up 40.8% to N1.84trn (Vanguard)
Nigeria’s trade with the rest of Africa increased by 40.8 percent Year-on-Year (YoY) in the first half of 2023 (H1’23) to N1.839 trillion from N1.306 trillion recorded in the corresponding period of 2022 (H1’22). This represents a reversal in the declining trend of the nation’s intra-African trade over the same period since 2020, in terms of value.
Available data from the National Bureau of Statistics (NBS) show that Nigeria’s intra-African trade in H1’21 amounted to N1.47 trillion out of total foreign trade of N21.79 trillion; and N1.67 trillion in H1’20 out of N14.55 trillion total foreign trade recorded within the period.
The NBS data on Nigeria’s external trade data with the rest of Africa also indicates that the intra-Africa trade is gaining more ground against total foreign trade recorded by the country in the past three years. Nigeria recorded N2.095 trillion trade with the rest of the African continent in H2’2022 out of a total foreign trade of N23.32 trillion within the period, representing 8.98 percent.
€10m project to address food security in Northern Ghana launched (Ghana Business News)
Government, European Union and the Food and Agriculture Organisation (FAO), have launched a €10 million project to support 50,000 vulnerable Ghanaians grappling with food security in some parts of the Northern Region of Ghana. The project is aimed at more economically sustainable and inclusive food systems, empowering communities to build resilient and profitable food production systems and reinforced environmental sustainability of food systems. It also aimed at enhancing social sustainability and gender responsiveness of food systems and improved governance and institutional sustainability of food systems.
The allocated funds will primarily focus on Planting for Food and Jobs, phase II (PFJ 2.0) target commodities. These efforts complement the Government initiatives to mitigate the adverse impacts of rising food, fertilizer, and fuel prices in vulnerable areas, to help alleviate poverty, hunger and malnutrition.
70 Ghanaian start-ups under AfriConEU project exposed to African market opportunities (MyJoyOnline.com)
Seventy start-ups in Ghana are receiving support in digital innovations to enhance their opportunities to gain access to the African market. The opportunity provided by the African Continental Free Trade Area will give entrepreneurs access to 1.3 billion people across the continent. The European Union-funded AfriConEU initiative is empowering local entrepreneurs to tap into the market.
The AfriConEU project empowers digital innovation hubs to catalyse digital entrepreneurship across Africa. The Ghana Bootcamp of the initiative exposed young entrepreneurs to avenues in unlocking their economic potentials by leveraging the AfCFTA platform.
Sanctions deepen economic misery in post-coup Niger (ZAWYA)
Acute deprivation is endemic in Niger, one of the world’s poorest nations. But West African sanctions aimed at forcing a return to democracy after a coup are making people’s lives worse. Food and medicines are scarce in the landlocked country, prices are skyrocketing and blackouts after regional powerhouse Nigeria cut its electricity supplies mean that factories are lying idle.
“Almost all prices have risen due to the sanctions,” shopkeeper Elhadj Ali tells his customers defensively at the bustling Dar-es-Salaam market in the capital Niamey. Regional bloc ECOWAS -- the Economic Community of West African States -- banned trade with Niger after rebel elite soldiers on July 26 overthrew Mohamed Bazoum, the democratically elected president.
Imported rice -- a national staple -- is way more expensive, with a 25-kilo bag now costing 14,500 CFA francs (about $25, 22 euros) against 11,500 CFA francs before the coup. “For the moment there are no shortages and the prevailing stocks will see us through till December,” said Chaibou Tchiombiano, general secretary of the main association of Nigerien exporters and importers. But he warned that reduced rice imports from China and Thailand could eventually lead to shortfalls.
Ghana is looking to supply Nigeria with its electricity needs following power grid shutdown (Business Insider Africa)
Mr. Hanson Monney, the Head of the Generation and Transmission Unit at the Ghanaian Ministry of Energy, emphasised that via effective policy development and implementation, Ghana has already attained an impressive 80% to 85% universal energy access inside its boundaries.
During his presentation in Lagos on the second day of the Nigeria Energy Leadership Summit, Money noted that Ghana has steadily been developing its power sector and may soon export electricity to Nigeria once the power system has been fully developed. “So, we are working on all these things to make sure that the power system of Ghana continues to be as good as it is or even better, and then, maybe, we can be exporting more to our big brothers in Nigeria when the grid is finally settled,” Mr. Hanson Monney said
In contrast, Ghana is aggressively pursuing various energy sources, including grid electricity, mini-grids, and solar-dominated renewable energy, to attain “Universal access to energy by 2024”, as instructed by the country’s President.
‘Streamlined trade, harmonised standards, others essential’ (The Guardian Nigeria)
A Fresh call has been made on the need for streamlined trade, harmonised standards and improved infrastructure in African agriculture to foster food security across the continent. President, Rest of Africa at AFEX, Sanne Steemers, who disclosed this, lamented that Africa lacks essential infrastructure for inter-continental trade, which is hindering the achievement of robust food security in the continent.
He noted that through the implementation of a more efficient agreement with African communities, the firm can promote sub-regional production networks and encourage cooperation initiatives, while promoting good agricultural practices throughout the continent. Currently, the intra-African trade stands at just 14.4 per cent of total African exports.
Steemers, who disclosed this during a session tagged: “The Real Cost of Food Security,” at the African Food System Forum 2023, said AFEX recently formed a partnership with Ghana Commodities Exchange, a move rooted in the belief that together, they can catalyse transformative change. “This partnership has been structured to facilitate cross-border knowledge exchange, foster synergistic research endeavours, and enable the seamless cross-listing of commodities, heralding a new era of progress and prosperity for Africa’s agricultural landscape.”
African Development Bank and ECOWAS assess regional integration strategy (AfDB)
The Economic Community of West African States (ECOWAS) and the African Development Bank Group have concluded consultations for the mid-term assessment of the West Africa Regional Integration Strategy Paper (RISP) 2020-2025.
The Bank Group approved the West Africa RISP 2020-2025 in May 2020 to support regional integration efforts in West Africa. With an initial indicative investment plan of $4.52 billion, the West African RISP focuses on improving resilient infrastructure and supporting the development of regional businesses.
The meetings took place from 5 to 15 September 2023 at the headquarters of the ECOWAS Commission in Abuja, Nigeria. During the period, the two sides assessed the key midterm results alongside a performance review of the Bank’s regional portfolio.
BizTech: How digital payments can be deployed to improve cash lite agenda (GhanaWeb)
The deployment of digital payments in emerging economies like Ghana continue to bring efficiency and improve transactions. For instance, Ghana’s mobile money market has been one of the fastest growing in Africa, and among the biggest with various firms providing the needed solutions to ease payments and enhance a cash lite agenda. One of such firms is eTranzact Ghana which is deploying rather pragmatic measures aimed at improving the digital payment space.
Chief Executive Officer of the firm, John Obeng Apea taking his turn on GhanaWeb TV’s BizTech shared how innovation continues to play a significant in Ghana’s payment space as well as the emergence of Artificial Intelligence in propelling the sector even further. He stressed that the implementation of the Africa Continental Free Trade Area presents a unique opportunity that will boost the digital payments ecosystem once the right trade barriers are eased with the needed reforms.
“I think the main role of government is to make the atmosphere conducive in terms of regulations and policies...taxes are good but overtaxing is also bad so we need to find an equilibrium to balance it out and make the digital payments space more conducive,” John Apea told Mawuli Ahorlumegah.
Organisation Identifies Cybercrime as Threat to Africa’s Digital Transformation (Voice of Nigeria)
The Africa Internet Governance Forum (AIGF) has identified cybercrime as a big threat to Africa’s digital transformation strategy. This was one of the recommendations at the twelfth African Internet Governance Forum, with the theme ‘Transforming Africa’s Digital Landscape: Empowering Inclusion, Security and Innovation’, which ended on 21 September 2023 in Abuja, Nigeria. The Forum also calls for an urgent need for governments across the continent to increase their investment in cyber security.
In a recommendation signed by all members, AIFG said “Cybercrime remains a potential threat to the implementation of AU 2063 agenda and AU’s digital transformation strategy. African Union and African government to ensure adequate investment to fight cybercrime activities, ensure international cooperation, and capacity building for lawmakers and enforcement actors, the judiciary and other necessary actors,” the AGIF said
The Forum noted that Africa’s digital workforce strategy is reactive and that urgent investment is required to bridge the digital divide and to develop the digital workforce that is needed for innovation.
African Development Bank and Google collaborate on digital transformation in Africa (AfDB)
The African Development Bank and Google on 20 September 2023 formalized cooperation aimed at advancing digital transformation in Africa. The parties signed a Letter of Intent during the Global Africa Business Initiative at the United Nations General Assembly in New York. The agreement underscores a shared commitment to harness emerging technologies, extend and improve infrastructure, and refine talent and skills in the continent.
Both parties have a history of fostering digital evolution. Over the past decade, the African Development Bank has invested $1.9 billion in projects emphasizing the development of broadband infrastructure, conducive policy and regulatory environments, digital skills, and innovative technology startups.
“Our journey from a 2% telephony penetration in 1998 to today’s era of 4G, 5G, and AI signifies immense progress. With 70% of sub-Saharan Africans under 30, our focus is on catalyzing businesses to create jobs and offer innovative solutions,” said Dr. Akinwumi Adesina, President of the African Development Bank.
Google has been a longtime partner in Africa’s economic growth and digital transformation. In 2005 Google invested in a major submarine telecommunications cable - the Seacom cable. Since then, Google has been committed to digital transformation by supporting talent development, innovation, infrastructure, and regulatory advancements across the continent.
Harnessing GovTech to Tax Smarter and Spend Smarter (IMF)
Digitalization is a transformative force as powerful as the advent of the printing press in the 15th century or electricity in the 19th. Yet some governments have been slow to harness the potential of digital technology to improve delivery of public services and strengthen public finance.
Emerging and developing countries have the most potential to leapfrog their development trajectory by adopting digital technologies. These countries lag considerably behind in internet connectivity, a key enabler for adopting and using digital technologies. Globally, about 2.7 billion people still need to be connected. Within countries, a digital divide persists across age and gender. Bridging this divide and benefiting from digitalization takes adequate digital infrastructure.
Our estimates show that $418 billion of investment in digital infrastructure is needed to connect unconnected households. The bulk of these investment needs are in emerging market and low-income developing economies, with the latter’s requirements estimated at 3.5 percent of GDP. Government support can be crucial in achieving universal connectivity by incentivizing or directly investing in building internet infrastructure, especially in regions where profitability remains challenging.
The African Development Bank President, Dr Akinwumi Adesina, has pledged his institution’s full support to the United Nations Secretary General’s Early Warning for All initiative and the Systematic Observations’ Financing Facility. The Bank is the implementing entity for the Facility in Africa.
Speaking yesterday at the United Nation’s Climate Ambition Summit session, Delivering Climate Justice: accelerating ambition and implementation on adaptation and early warning systems for all, Adesina said climate change was devastating Africa’s economies.
He pointed out that the continent accounted for just 3% of total emissions globally and was losing $7-$15 billion annually from climate change, an amount that is projected to rise to $50 billion in the next seven years.
The African Development Bank chief emphasised that despite its relatively minuscule level of total emissions globally, Africa receives a mere 3% of total global climate finance. He said the continent was facing a climate finance gap of $213 billion through 2030.
Ruto: Remedy to ‘unfair’ global financing model will be found (The Star)
President William Ruto revisited the debate on the international financing model during the Global Africa Business Initiative forum in New York. In a discussion attended by African Development Bank (AfDB) President Akinwumi Adesina among other leaders, Ruto sustained his call to have reforms at the IMF and World Bank undertaken. Ruto, in his presentation, expressed optimism that the much-needed reforms that favour African nations will soon be realised as the matter was now a discussion among global leaders.
“They are listening. The conversation about IMF reforms was in murmurs a few years ago, today it is being talked by no less than the President of the United States,” Ruto said. He added: “They have come to the realization that it is no longer possible to run the system the way it has been run...so everybody is listening so what is remaining is the how and we are going to show them the how.”
Ruto has been vocal in calling for a total overhaul of the current financial institutions saying their conditionality is unfair to African countries. “We also insist quite firmly that international development financing must be more appropriate for the needs of our existential moment, in terms of accessibility, affordability, and adequacy,” Ruto said five months ago during the third Regional Symposium on Greening Judiciaries in Africa.
Ruto added: “That is why we are insisting we must rethink the international financial system, we align it with reality. The model is not sustainable.”
In the aftermath of the COVID-19 pandemic, emerging market and developing economies are grappling with economic scarring, social tension, and reduced policy space. Policy actions are already urgently needed to boost growth in the near term and support the ongoing green transition. At the same time, high public debt and persistently high inflation have constrained policy space, posing difficult policy trade-offs.
This Staff Discussion Note focuses on emerging market and developing economies and proposes a framework for prioritization, packaging, and sequencing of macrostructural reforms to accelerate growth, alleviate policy trade-offs, and support the green transition. The note shows that prioritizing the removal of the most binding constraints on economic activity, bundling reforms (governance, business deregulation, and external sector reforms), and appropriate sequencing of other reforms (such as labor market and credit sector reforms) can help front-load reform gains.
In emerging market and developing economies with large initial structural gaps, the estimated output effects of such a major reform package are sizable—about 4 percent in two years and 8 percent in four years. Achieving higher growth and lower absolute carbon emissions over time requires a well-designed strategy that includes both macrostructural and green reforms.
Decarbonizing Urban Transport for Development (World Bank)
‘World’s breadbaskets’ are sinking, General Assembly chief warns (UN News)
For many countries, especially the Small Island Developing States, the matter at hand represents an existential threat. ”This is not a speculation or over-exaggeration. It is real,” explained Mr. Francis, substantiating his words with data from the Intergovernmental Panel on Climate Change (IPCC). The UN body assessing the science related to climate change, estimates that under current conditions the global-mean sea level is likely to rise between eight and 29 centimetres by 2030, with equatorial regions suffering the most.
“Not only do we risk losing land, but also the rich cultural and historical heritage of these islands and regions that have helped to shape people’s identities,” alerted Mr. Francis the dignitaries, who gathered at the early morning event.
WTO members address electronic commerce and technology transfer in final thematic session (WTO)
WTO members discussed electronic commerce and technology transfer on 21 September as part of the eighth dedicated discussion held this year under the Work Programme on Electronic Commerce.
Ambassador Usha Dwarka-Canabady of Mauritius, the facilitator of the Work Programme on Electronic Commerce , welcomed the exchanges which took place at the meeting. These included experience-sharing by members and discussions on technical assistance aimed at helping developing members bring technology to the forefront of their economic development.
The meeting included a presentation by Egypt on an African Group communication regarding the role of transfer of technology in resilience building.
Plastics Pollution Dialogue makes progress on draft MC13 statement (WTO)
At a meeting of the Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade on 21 September, WTO members and stakeholders discussed the first draft of a potential statement on plastics pollution to be issued at the 13th Ministerial Conference (MC13) in February 2024. The coordinators of the Dialogue welcomed positive feedback from participants, describing the revised draft as an important step closer to achieving “concrete, pragmatic, and effective” outcomes at MC13.
Ambassador Matthew Wilson from Barbados, Chair of the meeting, reiterated the challenging nature of the battle against plastics pollution. He pointed out that the world currently has 170 trillion plastic particles floating in the ocean, and by 2050, there will be more plastics than fish. In response, the WTO has taken action through the work of the Dialogue, as shown in the recent draft statement, he said.
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Kenya targets China imports in new tax evasion crackdown (The East African)
Chinese imports are set for tighter scrutiny as President William Ruto’s government intensifies a purge on entities and individuals who undervalue products shipped from the Asian nation, denying Kenya billions of shillings in tax revenue. The Treasury in its revenue strategy for the medium-term plans to deploy the Kenya Revenue Authority (KRA) for special partnerships with its counterpart agencies in other jurisdictions to determine the true value of imports shipped in from China.
Kenya imports most of its finished goods—from electronics to clothes—from China. However, the government reckons that the value of most of these products—especially electronics such as mobile phones and computers — have not been accurately priced, leading to tax leakages running into billions of shillings.
As part of its revenue administration measures that will be implemented in the strategy period, the Treasury said the government will be working with other tax authorities in determining the true value of “high-risk imports from China”, in what is aimed at addressing the problem of misinvoicing. Trade misinvoicing involves manipulating the price, quantity, or quality of a good or service on an invoice so as to shift capital illicitly across borders.
In 2022, Kenya imported goods valued at Ksh452.6 billion ($3.1 billion) from China, an increase from Ksh441.4 billion ($3 billion) the previous year, data from the Kenya National Bureau of Statistics (KNBS) show.
Land compensation issues delaying Ibadan Dry Port (ZAWYA)
Speaking during a visit to the Oyo State Ministry of Trade and Investment, the Director, SouthWest Zone and National Coordinator of the Presidential Port Standing Task Team, Mr. Moses Fadipe, stated that, “One of the germane issues surrounding this visit is the compensation to the land owners at the Inland Dry Port site at Olorisa-Oko, Moniya, Ibadan. Responding on the land compensation delay, the Permanent Secretary, Ministry of Trade and Investment, Dr Bunmi Babalola, said paucity of funds led to delay in completing compensation to the land owners.
ECOWAS to commence Lagos-Abidjan highway construction in January, 2024 (Nairametrics)
The Commission of the Economic Community of West African States (ECOWAS) has indicated that construction of the 1028-kilometer Abidjan-Lagos highway project is set to commence in January 2024, beginning with the procurement for the main construction and the actual construction work. At a workshop convened in Lagos by the project implementation Unit of the Commission’s Spatial Development Initiative to exchange ideas and comprehensively assess the highway project’s physical, economic, and social aspects.
Ebere Izunobi, the chairman of the Spatial Development Initiative, revealed that experts from five member countries, namely Nigeria, Ghana, Togo, Benin Republic, and Cote D’Ivoire, were convened to discuss the project aimed at transforming the lives of people living along this corridor. He emphasized that transport infrastructure has been accorded top priority in the ECOWAS commission’s programs.
Furthermore, he disclosed that the project was deliberated upon and approved during the meeting of the Heads of state. The highway, known as the “Abidjan-Lagos Corridor Highway,” spans approximately 1028 kilometres, connecting major cities and traversing an area with significant economic potential.
Comesa Ministers Link High Transport Cost to Inadequate Infrastructure (Kenyan Wallstreet)
Inadequate rail, road, air and waterways network is driving up the value of exports by as much as 70 per cent for the landlocked countries within the Comesa region. Ministers of infrastructure from the COMESA region are calling for mobilization of funds from national resources, public private partnerships, foreign direct investment and development partners to close the rising infrastructure gap.
Since the onset of the COVID-19 pandemic, the infrastructure gap has increased as resources were shifted towards the needs of the pandemic. It is estimated that African infrastructure gap increased in the year 2020 to between $59 billion and $96 billion.
Rwanda Minister of State in the Ministry of Infrastructure, Patricie UWASE, noted that despite the positive efforts of Member States, regional infrastructure is still lacking in terms of its quantity and quality. In addition, she noted, national policies sometimes hinder ease of trade, mobility and logistics. “Inadequate networks of road, rail, air and waterways make transport costs in Africa to be among the highest in the world. For the landlocked countries, these costs account for as much as 70 percent of the value of exports,” she added. She called on the ministers to provide policy guidance to facilitate development and adoption of practical solutions to mitigate the infrastructure challenges to ensure adequacy of the infrastructure in relation to current and future demand.
AfCFTA offers massive investment opportunities to the transport sector (African Business)
The 2030 Agenda for Sustainable Development has mainstreamed sustainable transport across many SDGs and targets, particularly those related to food security, health, energy, economic growth, infrastructure, and cities and human settlements. Experts agree that Africa needs a seamless and efficient transport sector to deliver on the trade boom envisaged with the operationalisation of the African Continental Free Trade Area (AfCFTA); in other words, transport drives trade.
Estimates show that the African Continental Free Trade Area (AfCFTA) will increase the demand for road, rail, maritime and air transport by 50%. This is a huge undertaking, calling for a similar roll-out in requisite infrastructure for Africa to be able to transport massive amounts of cargo and support the intra-African exchange of services and movement of people.
The effect of the full implementation of the AfCFTA on transport in the movement of goods and services is provided in a report by the UN Economic Commission for Africa (ECA): Implications of the African Continental Free Trade Area for Demand for Transport Infrastructure and Services. The report says that integrated planning of trade and transport will bring more benefits to AfCFTA signatories as a result of growing demand for different modes of transport.
“Currently, intra-African freight transport demand is heavily skewed towards road transport, with a nearly zero share for rail transport. We know that this distribution on the transport terrain can improve, with efforts to improve African transport policies to expand the rail network, combined with trade policies to implement the AfCFTA,” says ECA’s infrastructure expert and lead author, Robert Lisinge.
Recognizing the urgent need to address the persistent barriers affecting the provision of universal infrastructure services on the continent including policy, regulatory, financial, technical and capacity challenges in addition to the urgency required to respond to new challenges impacting Africa’s development including climate change, Russia-Ukraine crisis, and disruptions in global supply chains, African Ministers of Transport and Energy have adopted far-reaching decision to accelerate project implementation in the sectors.
At the just concluded 4th Ordinary Session of the Specialized Technical Committee on Transport, Transcontinental and Interregional Infrastructure, and Energy, the ministers forged solutions for Member States and Regional Economic Communities (RECs) to harmonise strategies, strengthen cooperation and accelerate implementation of projects to facilitate access to modern, sustainable, climate-resilient and universal access to infrastructure services to achieve the goals of the AU Agenda 2063 for continental integration, prosperity and peace.
The cost of transportation in Africa is on average 50 – 175% higher than other parts of the world as a result of poor infrastructure. About 60,000km and 100,000km of new roads are required to provide effective intracontinental connectivity in Africa by 2030. The current pace of infrastructure development in Africa cannot keep up with rising demand from communities and markets, subsequently having an impact on Africa’s competitiveness and participation in global markets. The poor state of infrastructure has led to the reduction of national economic growth by 2% annually in most African countries and as much as 40% reduction in industrial productivity.
To accelerate implementation of commitments and projects supporting transcontinental and Interregional Infrastructure, the ministers made emphasis on the importance of designing climate resilient and smart infrastructure projects and the importance of digital solutions and new emerging technologies in designing and enhancing efficiencies of transport and energy infrastructure projects and services.
Trade Policy Review: Central African Economic and Monetary Community (CEMAC) (WTO)
Of the six countries of the Central African Economic and Monetary Community (CEMAC), five are Members of the WTO and are covered by this report prepared for their second joint trade policy review, namely Cameroon, the Republic of the Congo, Gabon, the Central African Republic (CAR) and Chad. The sixth country, Equatorial Guinea, submitted its request for accession to the WTO in 2007 and the process is still ongoing.
The regional economy has a very low degree of diversification and depends heavily on natural resources, including oil and timber. Oil activities attract the majority of private investment, including foreign investment, in the region, with the exception of the Central African Republic. Oil accounted for around a quarter of CEMAC's gross domestic product (GDP), some two thirds of total exports and 42% of budgetary revenues in 2019, figures which were down compared to 2012. Most of the oil production occurs in Congo (40.4%), Gabon (21.5%) and Equatorial Guinea (16.7%). With the exception of Chad, timber remains the most important export of the other countries. A lack of investment means that other natural resources are underexploited.
The sharp drops in oil revenues, caused by falling prices and production over the last decade, have weakened the regional economy and contributed to lower foreign-exchange reserves. The consequences of the COVID-19 health crisis and the war in Ukraine have also played a role in slowing CEMAC economic activity and fuelling inflation. However, CEMAC's trade balance has remained in surplus, oil exports continue to be substantial, and exports of timber and gold, particularly to Asia, have increased significantly. As for intra-CEMAC trade, it remains low (3.5% in 2019) due, in part, to the structure of exports, the countries' weak industrial fabric, underdeveloped transport and communication infrastructure, non-tariff barriers, and the States' failure to implement certain Community provisions.
The services sector accounts for close to 50% of the GDP of CEMAC, followed by the mining and energy sector (nearly 20%), the agricultural sector (around 12%) and the manufacturing sector (11%).
Positive growth continues albeit fragile and with persistent inflation posing a key risk (OECD)
The global economy was stronger than expected in the first half of 2023, but the growth outlook is weak, inflation is proving persistent and there are significant downside risks, according to the OECD’s latest Interim Economic Outlook. With monetary policy working its way through economies and a weaker-than-expected recovery in China, the Outlook projects global growth of 3.0% in 2023 and 2.7% in 2024.
“Our projections in today’s Interim Economic Outlook are broadly in line with our previous forecasts. Further significant stress in financial markets has been avoided so far, after the turbulence due to bank failures earlier in the year. That said, the global economy continues to confront the challenges of elevated inflation, low growth and comparatively weak trade,” OECD Secretary-General Mathias Cormann said. “The priority for macroeconomic policy is to reduce inflation and re-build fiscal buffers. In parallel, in order to lay the groundwork for stronger and more sustainable growth longer term, policy action is needed to enhance competition, accelerate investment in low-carbon research and development and reduce rather than increase trade barriers.”
Carbon Prices Should Be 20-Times Higher, The Two Congos Say (Bloomberg)
Carbon credits produced in Africa and used by companies to offset pollution by paying for forest conservation on the continent should be at least 20 times more expensive than current prices, two presidents of Congo Basin nations said. A higher price would reduce the appetite for resource extraction and spur development in poorer countries, particularly those in Africa, according to Democratic Republic of Congo’s Felix Tshisekedi and Republic of Congo’s Denis Sassou Nguesso.
Themes of the Africa Climate (Finance) Summit: Loans, Taxes, Credits (tralac)
Europe’s Carbon Border Adjustment Mechanism to establish new rules of global trade (African Mining Market)
The Carbon Border Adjustment Mechanism (CBAM), a policy that will require producers of goods imported into the European Union (EU) to pay an emissions levy, should fast-track decarbonisation efforts, but also result in prices rising across several sectors sharply – according to the latest Wood Mackenzie Horizons report. The new report titled Playing by new rules: how the CBAM will change the wor
World leaders adopted a pdf Political Declaration (258 KB) yesterday calling for stronger international collaboration and coordination at the highest political levels to better prevent, prepare for and respond to pandemics, as the General Assembly held its first ever high-level meeting on the subject.
In the wide-ranging document, the Assembly committed to work to make access to pandemic-related products — such as vaccines, diagnostics and therapeutics — timely, sustainable and equitable, while calling on the World Health Organization (WHO) to coordinate this with relevant partners.
Opening the day-long debate — convened under the theme “Making the world safer: Creating and maintaining political momentum and solidarity for Pandemic Prevention, Preparedness and Response” — Assembly President Dennis Francis (Trinidad and Tobago) described the COVID-19 pandemic as “one of the most pressing global challenges of our time”, adding that its impact on economies and health systems would last for years to come.
UN sets out bold solutions to rescue SDG finance (UN News)
The big objective of the major UN General Assembly meeting is to unlock innovative and practical solutions to close the widening divisions between rich and poor. The UN Department of Economic and Social Affairs which drives the UN’s effort on SDG financing, notes that although fiscal challenges are mounting, “there is a window of opportunity if we act now.”
Most developing countries suffer from severe debt problems. And one in three countries around the world is now at high risk of suffering a fiscal crisis, according to the UN. These countries cannot fund progress on the SDGs if they are facing exorbitant borrowing costs and paying more on debt servicing than on health or education.
“Developing countries face borrowing costs up to eight times higher than developed countries – a debt trap”, warned UN Secretary-General António Guterres, “and one in three countries around the world is now at high risk of a fiscal crisis. “Over 40 per cent of people living in extreme poverty are in countries with severe debt challenges”.
Developed economies urged to accelerate climate action (SAnews)
Reform the international financial architecture – President Ramaphosa (SAnews)
African leaders take bold stand for sustainable development at UN Assembly (UN News)
A recurring theme in speeches delivered by the Presidents of Seychelles, Namibia, Ghana, Angola, Sierra Leone and Liberia was the urgent need to rebuild trust and rekindle global solidarity in the face of complex changes. They expressed unwavering support for the 2030 Agenda and its Sustainable Development Goals (SDGs), emphasizing that the current trajectory falls short of ambitions, further exacerbated by the COVID-19 pandemic. In their addresses, leaders also highlighted the need for reform of the Security Council to make that 15-member body more representative and effective.
President João Lourenço of Angola also highlighted the need for the United Nations to strengthen its role and its capacities to formulate the most appropriate responses and thus be able to face the many challenges. “It is essential that we do everything in our power to continuously promote respect for and observance of the values set out in the UN Charter and international law, so that we can correct the dangerous trajectory that the world took after the fall of the Berlin Wall,” he said.
Fragile States Need Customized Support to Strengthen Institutions (IMF)
Fragile and conflict-affected states have been among the worst hit by the pandemic, Russia’s war in Ukraine, the increase in energy and food prices, climate change, and intensified political instability. Each new crisis aggravates underlying fragilities and creates spillovers that can destabilize entire regions.
Conflicts forcibly displaced a record 108.4 million people last year, many of them refugees hosted in neighboring countries where fiscal conditions are already tight and growth prospects are weak. Fragility and conflict drive fragmentation and can cause reversals in trade, capital flows, and investment. Therefore, supporting fragile states by strengthening their economic and fiscal institutions is a global public good, as all countries can benefit.
The economic fallout from the pandemic hampers policymaking in these countries, which have endured large economic losses compared to pre-pandemic projections. The 39 fragile and conflict-affected states experienced a large loss in economic growth rates between 2019 and 2023 compared to pre-pandemic projections.
Africa needs skills and infrastructure to grow trade (Freight News)
Africa needs to confront its stifling non-trade barriers, and countries must home-grow or import skills if they want to develop and raise the level of intra-continental trade and reap the benefits of the African Continental Free Trade Area (AfCFTA). Fouche said this could be done by spending ten years to develop skills locally or by importing them under stringent conditions to establish a new industry as successful countries like New Zealand, Australia, Canada and the United Kingdom have done with their immigration policies.
SA to host US-Africa trade summit despite Russia spat (Times LIVE)
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Forex shortage challenging intra-Africa trade (Engineering News)
Intra-country trade across Africa is stuttering as businesses struggle to find the foreign currency, most notably the dollar, needed to pay for imports. This shortage has been caused by the depreciation of local currencies, higher interest rates and capital flight in the continent’s developed markets, the latest Standard Bank Africa Trade Barometer (ATB) shows.
This barometer was launched last year to address the information vacuum surrounding African trade data and is now one of Africa’s leading trade indexes, supporting the growth of intra-Africa trade. The fact that most surveyed businesses were small businesses is one of the central value-adds of the publication.
In its third issue, the barometer concentrates on ten countries – Angola, Ghana, Kenya, Mozambique, Namibia, Nigeria, South Africa, Tanzania, Uganda and Zambia. “Although there are many tariffs and other non-tariff barriers inhibiting intra-Africa trade as defined and articulated in the African Continental Free Trade Area (AfCFTA) Agreement, one of the key non-tariff barriers is information. “The ATB is helping address this lack of access to information through up-to-date survey data on the views of African businesses, the environment they operate in, trade behaviour and their perceptions on trade,” says Standard Bank Business and Commercial Clients division head of trade and Africa-China Philip Myburgh.
Seven broad categories are used to construct the ATB Index ranking by collecting data from primary and secondary sources. These categories are trade openness, access to finance, macroeconomic stability, infrastructure, foreign trade, governance and economy and traders’ financial behaviour.
PPC reports 5% y/y growth in South Africa and Botswana cement business (Engineering News)
The revenue for cement manufacturer PPC’s South Africa and Botswana divisions for the five months ended August 31 increased by 5% year-on-year, the company reported in an operating update on September 20. This increase was driven by higher average selling prices, despite weaker cement sales volumes during the period.
Additionally, revenues from the group's other operations in both Zimbabwe and Rwanda were significantly stronger than the previous year, increasing by 58% when measured in dollars and 19% when measured in rands.
Overall, group cement sales volumes, including for the Zimbabwe and Rwanda operations, for the five-month period were 3% higher year-on-year, primarily owing to exceptionally strong growth in Zimbabwe and, to a lesser extent, Rwanda.
SA ports of entry upgrade on the way (defenceWeb)
South Africa’s six busiest ports of entry – all land-based – are in line for an upgrade to make them more people and trade friendly, Home Affairs Minister Aaron Motsoaledi told a media briefing earlier this month (September). The ports of entry earmarked for betterment via development in public/private partnerships (PPPs) are Beitbridge – Zimbabwe; Lebombo – Mozambique; Maseru Bridge – Lesotho; Ficksburg – Lesotho; Kopfontein – Botswana; and Oshoek – Eswatini.
Explaining the redevelopment rationale, the Minister said: “South Africa’s ports of entry were designed during the apartheid era with the primary objective of tightened security while neglecting effective facilitation of regional and international trade. It is not an over exaggeration to state that when you visit our land ports of entry, between us and our SADC (Southern African Development Community) neighbours, the South African side of the border looks like informal settlements while the other side looks like Sandton”.
The redeveloped ports of entry will, according to Motsoaledi, see efficient cross-border management of movement of people, goods and services as well as “improved administration” of people entering and leaving South Africa. He named economic plusses – better regional integration, enhanced support for the African Continental Free Trade Area (AfCFTA); improved revenue collection and “addressing leakages” from illegal movement of goods and illicit financial flows and protecting local industry from harmful imports and exports as well.
On Friday, 22nd September 2023, FAO will conclude a nine-month assessment of Eswatini’s food control system with a final workshop in Manzini where high-level executives are expected to endorse the recommendations of the final report and commit to implementing its strategic plan. The assessment is part of “Strengthening of Capacities and Governance in Food and Phytosanitary Control,” a 5-million-euro project funded by the European Union which began in November of 2022 to provide technical support and work with Competent Authorities and other leading institutions in 11 Common Market for Eastern and Southern Africa (COMESA) Member Countries.
The final workshop will be the culmination of the nine-month assessment. Focal points and stakeholders involved in the country’s food control system from across the country will meet in Manzini from September 19 to 22 to review the findings and recommendations of the assessment, agree on priorities, and develop a strategic framework to facilitate its implementation. The key moment of the workshop will be on September 22 when high-level officials from Ministries across the country’s food safety control system are expected to approve and endorse the recommendations and the shared vision for the food control system, commit to implementing the strategic plan, promoting synergies, and engaging donors.
Zimra to roll out new tax admin system (The Herald)
The Zimbabwe Revenue Authority (ZIMRA) is set to introduce a new tax system next month in a bid to revolutionise the tax administration terrain in the country through an efficient, effective, and easy-to-navigate system based on a digital platform. Known as the Tax and Revenue Management System (TaRMS), it is a product of ZIMRA’s business process re-engineering (BPR) programme launched in 2022. The BPR identified digitalization as the key aspect of improved service delivery to ZIMRA’s diverse clients.
The TaRMS commenced in 2022 following an intensive user needs analysis and assessment. It is being introduced to close the gaps that have historically affected efficient revenue collection. This is also in line with the authority’s shift towards automation and digitalization.
ZIMRA commissioner-general Ms Regina Chinamasa said the advanced automation system expected to go live on October 12 would not only address the revenue collection but also help trade facilitation. It is also expected to address challenges that ZIMRA has been facing including revenue leakages. This is in addition to being more user-friendly, a key enabler for ensuring voluntary tax compliance.
“Faced with the persistent system challenges, ZIMRA benchmarked with good practices in revenue administration and supporting systems and identified system gaps necessitating the modernisation agenda undertaken from 2020,” said Mr Chinamasa during a stakeholder engagement meeting to unpack the new system on Monday.
Uganda embarks on initiatives to revive declining edible oil production (Monitor)
Uganda has initiated the rehabilitation of key access routes to oilseed projects in 81 locations in an effort to bolster its diminishing edible oil exports. The nation is exploring strategies to revitalise its dwindling export earnings from edible fats and oils, which fell from Shs1.05 trillion in the same period last year to Shs338.2 billion in July 2023.
Uganda has been grappling with the production of this highly sought-after product, with a surge in global demand last year exacerbated by a conflict in Ukraine, one of the world’s leading vegetable oil producers. This conflict disrupted supply chains and inflated prices in the local market. The country currently satisfies less than 40 percent of the demand and is striving to enhance its output by rejuvenating oilseed projects in various districts across the nation, incorporating value addition, and upgrading transportation links to market centers.
Import bill falls for first time since Covid (Business Daily)
Kenya has this year posted a drop in the value of imports for the first time since the Covid-19 pandemic era due to reduced expenditure on key supplies such as materials for factories, machinery and fuel, fresh official data show. Traders spent Sh1.43 trillion on goods ordered from abroad for the first seven months of the year compared with Sh1.46 trillion in a similar period last year, according to the data collated by the Central Bank of Kenya. The 2.09 percent— about Sh30.57 billion— fall has come when global prices of major imports moderated as disruptions in supply chains eased, helping to cut the cost of shipping.
Challenges in global supply chains were last year exacerbated by Russia’s war in Ukraine at a time when they were yet to recover from pandemic-induced shocks. The drop in import bill was largely helped by a 15.83 percent fall in expenditure on intermediate goods used by manufacturers to Sh212.43 billion in the January-July period from Sh252.37 billion in a similar period last year. Kenyan factories largely rely on foreign markets for the supply of materials.
The overall drop in imports helped to narrow Kenya’s goods trade deficit – the gap between merchandise exports and imports – in the review period by 8.81 percent to Sh867.53 billion. The shrink in goods trade imbalance came despite earnings from exports growing at the slowest pace since the pandemic.
Nigeria tasked on Africa’s $300b digital economy gains (The Guardian Nigeria)
Nigeria has been asked to take advantage of the $300 billion potential economic gains that await Africa’s digital economy by 2025. This advice came from the Head of Privacy Policy, Africa, Middle East and Turkey, Meta, Dr. Ololade Shyllon. She said huge economic potential awaits Nigeria and others if they can key strategically into the region’s digital economy, stressing that this has been propelled by the African Continental Free Trade Area (AfCFTA) agreement.
Stressing the importance of harmonising data regulation in the region, the Meta chief, said currently 35 African countries have different data regulations unlike the European Union (EU), which has only a single data regulation. According to her, Africa must harmonise data regulation to be able to benefit immensely from the potential of the region.
“Free flow of data across the region is essential to boost trade. While data must be protected, a restricted data ecosystem would be a very big problem for Nigeria and others. Data kept at stagnation doesn’t make it valuable until it is used,” he stated.
Nigeria, Benin Republic Customs Sign Trade Agreement (The Tide News Online)
The Customs Administrations of Nigeria and Benin Republic, recently at a two-day interactive session in Abuja, signed an agreement to develop frameworks for clearing of Nigeria bound goods in Benin Ports and vice versa. The two customs administrations agreed to collaborate to enhance trans-border security and regulate trade between the two countries.
The agreement is expected to deepen the relationship between Nigeria and Benin while promoting their age-old bilateral trade ties. Other areas that the partnership will address include enhancing the proper use of International Transit Guidelines to govern transit-bound goods and fees from Cotonou Port to Nigeria, as well as Integration of Nigeria into the Interconnected System for the Management of Goods in Transit.
It will also enable the countries to foster closer ties between then, while also reactivating the joint committee for monitoring trade and transit relations. Since the signing of the important agreement, many have been left in doubt as to its benefits to Nigeria as a nation, even as many have als argued that by this development, Nigeria would be taking its market and labour to Benin Republic.
Trade volume between Türkiye, Africa rises eightfold to $40.7B (Daily Sabah)
The trade volume between Türkiye and African countries has increased eightfold in the last two decades and reached $40.7 billion (TL 1.1 trillion), Deputy Foreign Minister Yasin Ekrem Serim said Tuesday. Speaking at the closing of the 9th World Cooperation Industries Forum (Wci Forum) held in Istanbul between Sept. 18-19, Serim emphasized that the African continent stands out as the rising value of the 21st century with its cultural accumulation and enormous potential.
“Our trade volume with Africa has increased eight times. The figure, which stood at $5.4 billion in 2003, amounted to $40.7 billion in 2022. The value of direct investments exceeded was by $6 billion,” Serim said, adding that President Recep Tayyip Erdoğan is positioned as the world leader who pays visits to the continent the most. The forum with the main theme, “Addressing Challenges, Unlocking Opportunities: Building Stronger Türkiye-Africa Economic Partnerships,” prioritizes the energy, infrastructure, agriculture, agribusiness, health care, tourism and digital marketing sectors.
Third Global Trade and Supply Chain Summit kicks off in Dubai (Emirates News Agency)
The third Global Trade and Supply Chain Summit, organised by The Economist Impact, kicked off today at The Address Dubai Marina Hotel, Dubai. Bringing together thought leaders, trade and supply chain policymakers, analysts, UN representatives and C-level officials in vital sectors, the event aims to address ways to boost the resilience of global trade operations, the essential link connecting sustainability and supply chains, and the role of emerging markets over the next years.
The Summit covers a host of various themes including the effects of geopolitical and economic turmoil on planning and supply-chain operations, digital trade and technology, the changing role of customs organisations and compliance teams, and measuring and deploying sustainability initiatives along the supply chain.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade said in his keynote remarks, “Trade has been essential to the development of the UAE, powering our economic vision by opening new markets, stimulating industrial productivity, creating jobs and introducing new skills and capabilities. It is why we remain a committed advocate of the multilateral trading system. But it is essential trade evolves with the times, adapting to new technologies, developmental challenges and environmental responsibilities. As we build towards MC13, we will be restating the case for open, accessible and well-regulated supply chains – and using platforms such as the Global Trade and Supply Chain Summit to urge stakeholders and policymakers to come together to make them fit for the 21st century.”
The number of international investment projects announced in developing countries in sectors relevant to the Sustainable Development Goals (SDGs) increased by 15% in 2022. However, the growth was unbalanced, with some SDG sectors showing only slow progress. It was also uneven, with negative trends in LDCs (-9%) and stagnation in many other developing countries.
UNCTAD’s review at the midpoint of the 2030 agenda shows that the annual SDG investment gap in developing countries is now about $4 trillion. If the SDG investment needs to 2030 are to be met, some $30 trillion of additional investment must be found over the next eight years. More than half of the gap, or $2.2 trillion, relates to the energy transition alone.
IMF, World Bank, OECD Seek More Consistent Climate-related Financial Data Globally (This Day Live)
SDG Progress report 2023 (FAO)
As SDG Summit Concludes, Secretary-General Urges World Leaders to Lift Political Declaration ‘Off the Page’, Invest in Development Like Never Before (United Nations)
The Political Declaration adopted yesterday leaves world leaders with “a to-do list” to turn words into action to attain the Sustainable Development Goals (SDGs), the United Nations chief said today at the close of the SDG Summit, proposing key measures, including reform of the global financial system and increased availability of liquidity to countries in debt distress.
“We must make the most of this Summit’s momentum to spur progress in the months ahead,” Secretary‑General António Guterres appealed to participants as he closed the Summit — known formally as the high-level political forum on sustainable development. Calling for the formation of a leaders group to deliver clear steps that enable the $500 billion per year needed for sustainable development to start flowing before the end of 2024, he also urged developed countries to finally meet their official development assistance (ODA) target of 0.7 per cent of gross national income.
In addition, Mr. Guterres stressed, among other things, the need for recapitalization and urgent additional rechannelling of $100 billion in unused special drawing rights, as well as reform of the global financial architecture. The twenty-eighth United Nations Framework Convention on Climate Change next month will be the moment to operationalize the new loss and damage fund. “This development to-do list is not just homework. This is hope work,” he emphasized, adding: “We have a rescue plan before us in the Political Declaration. Now is the time to lift the Declaration’s words off the page and invest in development at scale like never before.”
President Ramaphosa calls on wealthy countries to meet financial commitments on climate (SAnews)
President Cyril Ramaphosa has called on partners from wealthy countries to meet the climate financial commitments they made to tackle global warming in developing countries. “We call on our partners from wealthier countries to meet the financial commitments they have made. It is a great concern that these wealthier countries have failed to meet their undertakings to mobilise 100 billion dollars a year for developing economies to take climate action,” the President said. President Ramaphosa was speaking during the 78th Session of the United Nations General Assembly (UNGA78) at the United Nations headquarters in New York on Tuesday.
“Africa is least responsible for the climate damage that has been caused and yet it bears the greatest burden. “Centuries after the end of the slave trade, decades after the end of the colonial exploitation of Africa’s resources, the people of our continent are once again bearing the cost of the industrialisation and development of the wealthy nations of the world,” he said. President Ramaphosa stressed “this is a price that the people of Africa are no longer prepared to pay”.
Themes of the Africa Climate (Finance) Summit: Loans, Taxes, Credits (Gita Briel, tralac)
Tinubu urges UN to help Africa tackle foreign illegal mining, arms trade (The ICIR)
President Bola Tinubu has called on the United Nations to support Africa to curb the influx of illegal arms trade and illicit mining by foreign firms. He made the call on Wednesday, September 20, while addressing the 78th United Nations General Assembly (UNGA). He said illegal arms deals had resulted in inhumane commercial activities, especially in Sub-Saharan Africa, while noting that illegal mining had been a persistent concern, posing significant economic and environmental threats to several African countries, particularly Nigeria.
Speaking on illegal arms, the President said, “Our entire region is locked in a protracted battle against violent extremists. In the turmoil, a dark channel of inhumane commerce has formed. Along the route, everything is for sale. Men, women and children are seen as chattel.
While highlighting the adverse environmental impacts of illegal mining, Tinubu urged world leaders at the 78th UNGA to collaborate and implement stringent measures to curb the practice. He said: “The fourth important aspect of global trust and solidarity is to secure the continent’s mineral-rich areas from pilfering and conflict. Many such areas have become catacombs of misery and exploitation. The Democratic Republic of the Congo has suffered this for decades despite the strong UN presence there. The world economy owes the DRC much but gives her very little.
Africa’s Newest Oil Jackpot Comes With a Corruption Curse (BNN Bloomberg)
The discovery off the shores of Namibia last year by TotalEnergies SE and Shell Plc of an estimated 11 billion barrels of crude has generated understandable excitement in the southern African country. Even if only a small portion of that potential load — valued at about $1 trillion at current prices — is realistically recoverable, it holds the promise of untold riches for this nation of 2.7 million people. But given what oil finds have spawned elsewhere on the continent, it’s drawing a sobering dose of caution.
“Poor management of the oil and gas sector can drive corruption and inequality that in turn will fuel social tensions and threaten political stability,” Tom Alweendo, Namibia’s minister for mines and energy, told an audience last month at the Mercure Hotel in the capital Windhoek. “It is imperative that the custodians of these resources possess the required skills and above all, that they have a high level of integrity.”
Quick links
Trade policy review: Cameroon, Central African Republic, Chad, Gabon and Congo, 2023 (WTO)
Using the creatives to boost intra-African trade (Africa Renewal)
SADC Business Council and Africa’s Conscious Brands & Circular Economy Summit Join Forces to Drive Sustainable Transformation in Southern Africa (Engineering News)
Africa trade report: Not out of the woods yet (Global Trade Review)
Regional value chains key to Africa’s prosperity (New African Magazine)
Africa all set to enter electric vehicle industry (New African Magazine)
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US-South Africa hold trade, investment dialogue to deepen bilateral business ties (Engineering News)
The US-South Africa Trade and Investment Executive Dialogue on September 18 built on partnership efforts and saw the launch of a yearly US-South Africa Trade and Investment Forum. The dialogue also explored how this Trade and Investment Forum can benefit growing US-South Africa commercial ties.
The dialogue was hosted by business organisation Business Unity South Africa (Busa) and the US Chamber of Commerce Africa Business Centre (USAfBC) on the sidelines of the United Nations General Assembly. President Cyril Ramaphosa attended the dialogue.
“The opportunity is ripe for US and international investors to be part of South Africa’s growth efforts in a partnership between business and government, to put the country onto a sustainable growth path and optimise its potential,” Busa CEO Cas Coovadia said.
“The memorandum of understanding between Busa and the USAfBC, and the launch of the Trade and Investment Forum, demonstrates how partnership is so key to prioritising and promoting our countries’ shared growth and prosperity,” he said
Africa ready for new investment - President Ramaphosa (SAnews)
I also look forward to welcoming all of the companies present here today to South Africa in November this year during the AGOA Forum… I look forward to building and strengthening business relationships that will accelerate growth, enable commercial success and ensure prosperity for both our countries,” President Ramaphosa said. “The significant presence of US companies operating in South Africa, including Ford, Coca-Cola, Pepsico, Procter & Gamble, Google, Amazon and Walmart, among many others, forms a base for increased investment,” the President said.
Sierra Leone blackouts cast doubt on power ships (African Business)
Sierra Leone has again endured power outages after Turkish company Karpowership suspended its operations in the country for several days over a $40m unpaid bill.
Karpowership is the country’s main source of grid electricity, especially during the dry season when output from hydroelectric power stations is lower. The company first deployed a “power ship” – a floating gas-fired power station – in Sierra Leone in 2018, and added a second vessel the following year. Under its latest five-year contract with the government, signed in 2020, Karpowership supplies up to 65 MW of electricity to the country.
A Karpowership spokesperson told African Business that it “took the unfortunate and difficult decision to briefly suspend operations” in Sierra Leone, following a “protracted period of non-payment”. The company said it restarted operations on 15 September.
Although the exact terms of Sierra Leone’s contract with Karpowership have not been publicly disclosed, the World Bank described the supply of electricity from the company as “costly” in a report last year.
Noting that the purchase price of electricity from Karpowership is indexed to global fuel prices, which significantly increased after the Russian invasion of Ukraine, the World Bank has advised Sierra Leone to invest in solar and hydropower generation as an alternative.
How long will Ghana keep importing rice, water, toothpick, sugar, other products? (GhanaWeb)
The Association of Ghana Industries (AGI) President, Dr Humphrey Ayim-Darke, has questioned when the importation of basic essential commodities such as rice, poultry, toothpick, tomatoes, sugar, bottled water, ceramic tiles, among other products will come to an end. According to him, local manufacturers have the capacity to produce these items to meet at least half of the country’s demand. Mr Ayim-Darke stated that sugar was a basic product that could be produced on a large scale.
“For how long are we going to depend on imported rice, imported poultry, imported vegetable cooking oil, imported bottled water, machetes, toothpicks, tomatoes, ceramic tiles, and I can go on and on just to mention a few,” he lamented. The AGI president added that, “Sugar is a basic product and we believe we have the capacity to produce at best half the requirement of our country at the start.” He noted that developing the local supply chain was the best amidst the rollout of a developmental paradigm scheme by countries to gain a significant share of the world trade.
Tanzania: Enhancing the Efficiency of Revenue Collection and Spending Could Greatly Improve Human Capital Results (World Bank)
Improving the efficiency and effectiveness of fiscal policies could help Tanzania boost revenue collection and increase public expenditure, paving the way for stronger human capital outcomes, inclusive economic growth, and prosperity of the citizens, according to a new World Bank report.
The 19th Tanzania Economic Update titled, Enhancing the Efficiency and Effectiveness of Fiscal Policy in Tanzania, which was published today, shows that Tanzania made some progress in expanding tax collection, with the tax-to-GDP ratio increasing from 10 percent in 2004/05 to 11.8 percent in 2022/23. Meanwhile, public spending has increased from 12.6 percent of GDP to 18.2 percent of GDP, which is still lower than the average for Sub-Saharan Africa, low-income countries, and lower-middle-income countries.
“Tanzania’s economy has been steadily expanding, and the fiscal policies have been successful in reducing income inequality, but there is still room for enhancing these policies to improve public spending in priority programs,” said Nathan Belete, World Bank Country Director.
“While additional resources are needed to close the service delivery gaps in social sectors, there is scope to improve the efficiency of spending within the current systems. If the healthcare system were to operate at its utmost efficiency, Tanzania could enhance critical health outcomes by 11 percent without necessitating additional resources.”
Small scale cross border programme undergoes review (COMESA)
The project steering committee (PSC) of the COMESA, Small Scale Cross-Border Trade Initiative conducted its 4th meeting in Lusaka, Zambia 18 – 20 September 2023 to review progress of the project’s implementation, five years since its inception. The project is funded by the European Union with a total investment of 15 million Euros. It focuses on facilitating the transition of informal sector traders into the formal trade sphere. Among the activities under implementation is the construction of border markets to provide decent trading spaces for the traders. This is in addition to training the traders on trade facilitation to equip them with knowledge on the importance of formalizing their businesses.
Specifically, the Cross-Border Trade Initiative has supported the design and implementation of trade facilitation policies and instruments such as the Simplified Trade Regime and the Green Pass. It has assisted development of tools and systems for reduction in corruption, bribery and harassment at the selected border posts and collection of gender disaggregated data on small scale cross border trade.
“The SSCBTI has focused on these important aspects, to increase the formalization of small-scale cross-border trade flows in the COMESA/tripartite region,” Dr Mohamed Kadah, Assistant Secretary General of COMESA said at the meeting. “Ultimately, this will lead to higher revenue collection for governments at the borders, increased security and higher incomes for small-scale cross-border traders.”
EAC is set to review one network area implementation (Capital Radio)
Regional communications sector regulators have resolved to review the implementation of the One Network Area (ONA) framework on roaming charges to help deal with emerging issues arising from its current form of implementation. The One Network Area promises cheaper calls across the East Africa community with the benefits of making communication easier and cheaper and also to promote business in the region. The development was reached at during a two-day Heads of Communications Regulatory Authorities meeting held in Kigali, Rwanda.
“We have agreed that we are going to go back to the operators and engage them in our countries, and then get to know what their experiences are about this [ONA] framework,” Dr. Zawedde said at the end of the summit held at Four Points Hotel. Dr. Zawedde, however, noted the operators’ feedback will not affect the framework objectives whose original position stands that the receiver of calls during the roaming process should not be charged.
Dr. Aminah Zawedde, the Permanent Secretary Ministry of ICT and National Guidance in Uganda and the chair of the ICT Infrastructure Development Cluster under the Northern Corridor Integration Projects (NCIP)
Academic expert advocates integration for unified African currency (Nairametrics)
Prof. Jonah Onuoha, an academic expert, has emphasized the importance of closer collaboration among the 55 member nations within the African Union (AU) in their pursuit of a unified currency. Onouha, who holds a professorship in International Relations and serves as the Head of the Political Science Department at the University of Nigeria, Nsukka, conveyed this viewpoint during a conversation with the News Agency of Nigeria (NAN) in Abuja on Tuesday.
This call for integration comes in the wake of Brazilian President Luiz Inacio Lula da Silva’s proposal at the BRICS summit in Johannesburg for BRICS member countries to establish a shared currency for facilitating trade and investment among themselves.
Professor Onuoha expounded on the challenge facing the realization of a common currency, considering the economic, political, and geographical disparities within the African continent. He urged the AU to pursue greater integration to avert consequences that might arise from such a currency initiative in Africa. While acknowledging the merit of BRICS’ proposal for a common currency, Prof. Onuoha raised questions about its feasibility.
Post-harvest Losses Remain Dev’t Challenge in Africa, Says AU Commissioner (ENA)
Food loss and waste, particularly post-harvest losses, remain a development challenge in Africa, AU Agriculture, Rural Development, Blue Economy and Sustainable Environment Commissioner Josefa Sacko said. The 4th All Africa Post-harvest Congress and Exhibition that kicked off today aims to address the critical issue of food loss and waste across the African continent.
In her opening remarks, Commissioner Sacko said the congress is taking place at a time when the world is grappling with unprecedented levels of hunger and malnutrition, but more rampant in Africa. She noted that “despite our collective efforts to achieve global food security, food loss and waste particularly post-harvest losses, remain a development challenge in Africa.’’
Post-harvest loss and waste exacerbate food insecurity, reduce income of farmers and communities, waste precious land, water, and energy resources by using resources without generating human benefits and increasing greenhouse effects on the environment, the commissioner elaborated.
Out of the more than 800 million people facing hunger globally, 278 million are in Africa, Commissioner Sacko revealed, adding that whereas 30 percent of the food produced for human consumption is wasted. This calls for urgent and concerted efforts to preserve the harvest for human consumption and save the environment, she underlined.
UNGA updates
Unity, solidarity and action needed now: General Assembly President (UN News)
For the first time since the onset of the COVID-19 pandemic more than three years ago, Heads of State and Government from most of the UN’s 193 Member States are meeting in the iconic General Assembly Hall for their annual week of debates .”This year our imperative is clear: to unite the nations, to be united in conviction of common purpose and in solidarity of joint action,” he said. Mr. Francis stressed that a common approach is needed now, as much as at any point in history, as the international community confronts conflict, climate change, debt, energy and food crises, and poverty and famine.
‘Reform or rupture’ says Guterres, calling for multilateralism to be remade for the 21st century (UN News)
Only determination and compromise can rescue a world that is becoming ”unhinged” Secretary-General António Guterres said on Tuesday, delivering a stark message to leaders gathered in New York: reform the multilateral system and come together for the common good.
“The world has changed. Our institutions have not. We cannot effectively address problems as they are if institutions do not reflect the world as it is. Instead of solving the problems, they risk becoming part of the problem,” the Secretary General said in his opening address to the General Assembly.
Mr. Guterres was delivering his annual report on the work of the Organization ahead of the Assembly’s annual General Debate which brings together world leaders to New York.
Least developed countries are seriously off-track in achieving sustainable development goals, says PM Dahal (The Kathmandu Post)
Prime Minister Pushpa Kamal Dahal on Monday stressed more investment in people, support for structural transformation and achieving rapid and sustainable recovery from the Covid pandemic for achieving the sustainable development goals.
“Halfway to the 2030 deadline, we are seriously off-track in achieving the SDGs,” said Prime Minister Dahal while addressing the 2023 SDG Summit as the Chair of the Group of the Least Developed Countries at the UN Headquarters in New York.
“The SDGs are in dire need of a rescue plan. We all know that twelve of the seventeen goals and at least 18 of the 169 targets refer explicitly to LDCs, recognising the importance of addressing their development challenges.”
The UN Economic Commission for Africa (ECA) and the South Center held a virtual event on September 12 to inform member states of the G77 and China about the critical issues in the ongoing discussions related to the reform of international tax cooperation. A total of 92 delegates from Africa, Asia, and Latin America, attended the briefing.
The purpose of the virtual meeting was to raise awareness of the UN Secretary-General’s report on promoting inclusive and effective international tax cooperation at the United Nations, which was mandated by the UN General Assembly in Resolution 77/244, tabled by Nigeria on behalf of the Group of African States. The report examined existing arrangements, suggested enhancing the UN’s role in tax norm shaping and rule setting, and identified three viable options: a multilateral convention on tax, a framework convention on international tax cooperation, and a framework for international tax cooperation.
Mr. Pedro encouraged participants to engage with the upcoming ECA technical report on critically assessing the UNSG’s three options in order “to give developing countries an equitable chance to participate effectively in international tax cooperation structures by shifting the power away from the current self-select club of developed countries.”
‘Staggering proposition’ reaching SDGs for small island States: A UN Resident Coordinator blog (UN News)
Guterres urges G77 and China to champion multilateralism ‘rooted in equality’ (UN News)
“I count on your Group, who have long been champions of multilateralism, to step up, to use your power, and fight,” he said. “Champion a system rooted in equality; champion a system ready to reverse the injustice and neglect of centuries; and champion a system that delivers for all humanity and not only for the privileged.”
Mr. Guterres noted that although these countries have lifted hundreds of millions out of poverty in recent decades, they are now facing myriad crises, with rising poverty and hunger, rocketing prices, soaring debt, and surging climate disasters. “Global systems and frameworks have let you down,” he told leaders gathered in the Cuban capital. “The conclusion is clear: the world is failing developing countries.” He said change will require action at the national level to ensure good governance, mobilise resources and prioritise sustainable development. At the same time, this national ownership will have to be respected.
How the UN SDG Summit aims to transform the world (UN News)
SA adds its voice to sustainable development dialogue (SAnews)
On day two of the UN SDG Summit and just ahead of the General Debate, the Director General of the Food and Agriculture Organization of the United Nations (FAO), QU Dongyu, held a Ministerial dialogue at UN Headquarters on the opportunities of scaling up action and investment for agrifood systems transformation as a solution to the biodiversity and climate crises.
Speaking at the event, which was co-hosted with Canada, Qu reminded Ministers of the importance of investing in the environment as biodiversity provides the genetic resources that underpin agrifood systems; a wide range of species; and healthy ecosystems to provide water, regulate climate and strengthen resilience against variability and disasters.
Currently, the impacts of the climate crisis affect agriculture and productivity, and therefore the availability, accessibility and affordability of food. At the same time, the way the world currently produces and consumes food contributes to greenhouse gas emissions, land use change and pollution that further negatively affect climate change and biodiversity loss.
G20 New Delhi Leaders’ Declaration commits resilience in a riskier planet (ESCAP)
The pdf New Delhi Leaders’ Declaration (1.41 MB) was unanimously adopted during the G20 Leader’s Summit on 9-10 September 2023. It has many takeaways covering a variety of pressing global challenges, including climate change, economic stability, digital economy, public health and the implementation of the 2030 Agenda for Sustainable Development.
Notably, the Declaration underscores the criticality of disaster risk reduction (DRR) and building disaster resilience in the riskier times of an increasingly warming planet. It reflects strong commitments from the leaders of the world’s major economies to accelerating full implementation of the Sendai Framework for Disaster Risk Reduction.
Countries Can Tap Tax Potential to Finance Development Goals (IMF)
Emerging markets and developing economies need $3 trillion annually through 2030 to finance their development goals and the climate transition. That amounts to about 7 percent of these countries’ combined 2022 gross domestic product and poses a formidable challenge, particularly for low-income countries.
New IMF research finds that many countries have the potential to increase their tax-to-GDP ratios—enabling them to provide critical government services—by as much as 9 percentage points through better tax design and stronger public institutions. Making use of this potential would also contribute to financial development and private sector entrepreneurship. Easier financing, in turn, together with efficient and well-targeted spending, including to strengthen social safety nets, would go a long way toward delivering sustainable development.
Fisheries subsidies chair introduces draft text, seeks members’ views at fifth “Fish Week” (WTO)
The chair of the fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, introduced a draft text on curbing subsidies contributing to overcapacity and overfishing at the opening of the fifth “Fish Week” on 18 September, drawing from previous negotiating texts and proposals. The chair explained that his intention is for the text to serve as a common starting point for members as they seek to deepen discussions and complete substantive work on the second wave of fisheries subsidies negotiations by December.
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Agri SA warns govt’s interference amid food price dilemma could have detrimental long-term effects (Engineering News)
Industry body Agri SA has warned that government interference in the food market could lead to empty supermarket shelves. The organisation intends to write to the Agriculture, Land Reform and Rural Development Minister Thoko Didiza to request engagement with stakeholders in the value chain on the implications of government’s stated intention of tackling food pricing. This follows an announcement by Minister in the Presidency Khumbudzo Ntshavheni that Carbinet has directed the Economic Cluster to put in place an action plan on food prices, food security and access to food.
Food price inflation has remained high despite various input costs having decreased, mostly owing to persistently high fuel costs and loadshedding disruptions. Agri SA says this highlights the highly complex dynamics of the food system and how, if government wants to substantively address the situation, it must begin by fixing functions within its remit – including fixing road and port infrastructure, reducing rural crime and ending loadshedding.
Agri SA is focusing its attention on food security by making it the theme of its yearly congress, which will be held on October 13 and 14. The event will discuss factors impacting food production, food accessibility, affordability and safety.
Zambia, China Presidents commit to enhancing trade cooperation as they meet in Beijing (Africanews)
Zambia’s president Hakainde Hichilema was hosted by his Chinese counter part president Xi Jinping on Friday (Sep. 15). The leaders held talks at the Great Hall Of The People in Beijing. According to a joint statement, the leaders “had in-depth exchange of views on China-Zambia relations, China-Africa relations and international and regional issues of mutual interest and reached extensive and important consensus.”
The two sides agreed to establish an investment cooperation working group mechanism to promote investment cooperation in areas including digital economy and green development. They said they will strengthen the development of economic cooperation zones, support the upgrading of those economic cooperation zones in Zambia into industrial chain and supply chain cooperation demonstration zones.
Kenya seeks to lease key ports to private firms (The East African)
Kenya has revived the process of leasing its key ports to bolster competitiveness of its maritime sector in order to generate at least $10 billion annually by 2030.Kenya has placed bids to lease sections of Mombasa and Lamu ports to private operators, with landlord-type port management system expected to take place in what is aimed at making the Northern Corridor competitive.
President William Ruto’s administration is seeking private investors to take over the operations and management of five critical ports facilities – Mombasa and Lamu ports, Dongo Kundu Special Economic Zones, Kisumu port, and Shimoni fisheries port through a public-private partnership.
President Ruto said the move will turn the port facilities, which have been confronted with the challenge of congestion and higher dwell times for cargo, into world class ports.
57 Checkpoints Along Badagry-Seme Expressway Frustrating Intra-African Trade (Leadership News)
The Economic Community of West African States (ECOWAS) Commission, over the weekend, said over 57 checkpoints on the Badagry-Seme expressway of the Lagos- Abidjan corridor are frustrating intra-African trade. The executive secretary of the Nigerian Shippers’ Council (NSC), Hon. Emmanuel Jime, however, noted that more than 400 trade obstacles have been reported along the trade corridor.
Speaking at the sensitisation workshop in collaboration with ECOWAS Commission on awareness creation for professional organisations and stakeholders on elimination of Non-tariff barriers using ECOWAS Trade Obstacle Alert Mechanism (TOAM), organised by the Nigerian Shippers’ Council (NSC), over the weekend, the principal trade advisor, ECOWAS Commission, Justin Bayili, said delays occasioned by the checkpoints was militating against trade facilitation. Bayili stated that there is a need to create good conditions for trade facilitation in the region.
Jime observed that the trade barriers, which were so many, comprised lengthy clearing terms, transit checkpoints with unwarranted delays, harassment, exorbitant illegal fees, and demands for bribes had far-reaching consequences. The executive secretary, however, explained that more than 49 percent of them had been effectively addressed by national focal point representatives, supported by advisory services from the International Trade Centre (ITC).
Egypt to host the third edition of Intra-African Trade Fair (EgyptToday)
Minister of Industry and Trade, Ahmed Samir, recently met with a delegation from the African Export-Import Bank (Afreximbank) led by Kanayo Awani, Vice President of the Bank. The purpose of the meeting was to finalize preparations for the highly anticipated third edition of the Intra-African Trade Fair, which will be hosted by Egypt.
During the meeting, Minister Samir and the delegation discussed various details regarding the exhibition, including arrangements for the opening ceremony and the signing of hosting agreements. The minister emphasized the exhibition’s objective of boosting intra-African trade and highlighting the vast investment opportunities across the continent.
As Egypt takes on the role of hosting the third edition of the Intra-African Trade Fair, it solidifies its position as a key player in promoting trade and investment within Africa.
ECOSOCC wraps up national dialogue series on the African Union’s Free Movement Protocol (AU)
The African Union Economic, Social and Cultural Council (ECOSOCC) convened the third and final multi-stakeholder national dialogue series of the year on the Free Movement Protocol (FMP), from 12-13 September 2023.
Increased mass migration and displacement within the African continent has spurred several policy frameworks to address and manage it. The African Union in particular has established two key policy frameworks to address, manage, and promote migration and mobility within the continent: the FMP and the Migration Policy Framework for Africa (MPFA).
The FMP aims to curb and eventually eliminate barriers to regional border migration (to work, visit, trade, live, etc.) within the continent. Eliminating these barriers translates to economic growth on the continent as well as improved migration procedures for African citizens.
Unfortunately, despite the existence of migration policy frameworks, policy uptake among AU member states and their popularization within African civil society remains low and has not achieved the desired impact. ECOSOCC has taken up the mantle to popularise the frameworks.
Liquid introduces two new routes to drive intra-African digital trade (The Star)
Liquid Intelligent Technologies (Liquid), a pan-African tech group of Cassava Technologies, has unveiled two new fully redundant terrestrial routes, Kenya to Ethiopia and Zambia to Malawi. This comes four months after the company launched its first terrestrial fibre optic cable that connects Mombasa to Johannesburg. The two routes are expected to provide greater efficiency and reliable regional connectivity, both key to the economic development of these countries.
According to a presser by Liquid, the fibre link which spans over 1000km offers businesses in Ethiopia access to data centres and cloud in Nairobi ensuring that data doesn’t leave the continent. “This link is further supported by the cross-border 711km link between Zambia and Malawi, providing a direct and reliable connection to content caches and data centres in South Africa,” the statement read in part.
Cassava Technologies president and group CEO Hardy Pemhiwa said all initiatives undertaken work towards realising the company’s vision of a digitally connected future that leaves no African behind. “The completion of these fibre links is yet another milestone achieved by Liquid as it continues to lay the foundations of economic growth through increased access to high-speed connectivity,” he said.
Africa Emerging As Global Gas Supply Source (Leadership News)
The managing director/CEO, Nigeria LNG Limited (NLNG), Dr. Philip Mshelbila, has said Africa is emerging as a critical global gas supply source, with production expected to double, solidifying the continent’s role in global energy security. He also said that natural gas should and will play a significant role in Africa’s energy mix to meet the demands arising from rapid population growth and economic expansion, as well as the need for affordable access to clean energy and supply security for industrialisation.
Dr. Mshelbila made these remarks during a strategic session at the recently concluded 2023 Gastech Exhibition and Conference in Singapore, where he discussed Africa’s role in increasing supply resilience in the energy transition context. He stated that African gas could enhance global energy security by increasing gas production, ensuring a steady supply source despite rising domestic consumption, and the growth of floating LNG, facilitating the rapid delivery of gas products to the market.
He stressed the necessity of adopting a multi-dimensional approach to the energy transition, considering Africa’s specific context and evolving needs. Dr. Mshelbila pointed out that the continent is already capitalising on opportunities in the energy transition, utilising gas as an evolutionary energy source that offers a cleaner alternative to traditional biomass and coal.
A groundbreaking report by a group of independent experts released today by the United Nations outlines steps governments should take to maximize the impact of policies and actions by tackling the climate and sustainable development crises at the same time, creating synergies.
“Maximizing synergies between climate action and the SDGs has never been more critical,” said Li Junhua, UN Under-Secretary-General for Economic and Social Affairs. “We must get the SDGs on track and keep the goal of 1.5 degrees alive,” he said, also stressing that an integrated approach that seeks to strengthen synergies between these two global agendas is critical to that end.”
“Achieving the Sustainable Development Goals and stabilizing our climate to build resilient societies are two sides of the same endeavour,” said Simon Stiell, UNFCCC Executive Secretary. “I am confident that the work of the Expert Group will spur additional efforts that can result in win-win outcomes for both climate action and the SDG agenda and transition us towards a just, equitable, and sustainable world.”
The report preface also cites UN Secretary-General António Guterres’ rallying cry that “climate action is the 21st century’s greatest opportunity to drive forward all the Sustainable Development Goals.”
UN General Assembly adopts declaration to accelerate SDGs (UN News)
Mr. Guterres was speaking at the opening of a high-level forum at UN Headquarters where world leaders adopted a political declaration to accelerate action to achieve the 17 goals, which aim to drive economic prosperity and well-being for all people while protecting the environment. “The SDGs aren’t just a list of goals. They carry the hopes, dreams, rights and expectations of people everywhere,” he said.
World leaders adopted the SDGs in 2015, promising to leave no one behind. The goals include ending extreme poverty and hunger, ensuring access to clean water and sanitation, as well as green energy, and providing quality universal education and lifelong learning opportunities.
“With concerted, ambitious action, it is still possible that, by 2030, we could lift 124 million additional people out of poverty and ensure that some 113 million fewer people are malnourished,” he said.
Each of the 17 goals contains targets, with 169 overall, but the Secretary-General warned that currently only 15 per cent are on track, while many are going in reverse. The political declaration “can be a game-changer in accelerating SDG progress,” he said. It includes a commitment to financing for developing countries and clear support for his proposal for an SDG Stimulus of at least $500 billion annually, as well as an effective debt-relief mechanism. It further calls for changing the business model of multilateral development banks to offer private finance at more affordable rates for developing countries, and endorses reform of the international finance architecture which he has labelled “outdated, dysfunctional and unfair.”
General Assembly: High-Level Political Forum on Sustainable Development - Summary (United Nations)
UNCTAD counts the costs of achieving sustainable development goals (UNCTAD)
With the world off track to achieve the Sustainable Development Goals (SDGs), decision makers urgently need detailed cost estimates to guide their investment and spending choices.
Over the last six months, UNCTAD has crunched the numbers on nearly 50 SDG indicators across 90 countries, including 48 developing economies, covering three quarters of the global population. Published on 18 September as global leaders meet in New York for the UN’s SDG Summit, the timely data underscores the pressing need for swift and targeted action.
The analysis reveals, for example, that the 48 developing economies face a $337 billion annual spending gap for indicators related to climate change, biodiversity loss and pollution.
The analysis reveals countries can make the most of their spending by capitalizing on synergies among the SDGs. For example, investments in education also advance gender equality, reduce poverty and stimulate innovation for progress across all SDGs. “This has big implications for economies with limited resources,” Ms. Peltola said. “They don’t have to stretch every dollar to cover every goal.”
The analysis focuses on six transformative “pathways” for sustainable development: social protection and decent jobs, education transformation, food systems, climate change, biodiversity loss and pollution, energy transition and inclusive digitalization.
‘We all need to step up’ to rescue the SDG’s and fight for a better future: UN chief (UNECA)
Africa Open for Business Summit kicks off in USA (The Standard)
The annual Africa Open for Business Summit kicks off in New York this week with a focus towards women leadership, in Africa and the diaspora. The summit is part of the global activities taking place around the high-level week of the 78th session of the UN General Assembly (UNGA) that starts today.
Its focus is also geared towards sustainable corporate practices, expanding job opportunities in Africa and its diaspora, and harnessing diverse perspectives to shape the future of business, trade, and development across Africa. Speaking ahead of the summit, Dr Djibril Diallo, the President and CEO of African Renaissance and Diaspora Network (ARDN) told The Standard that this year’s event will redefine the future of business, ignite climate action, and empower women.
“Our Summit is at the forefront of one of the most critical challenges of our time – Climate Justice. The remarkable individuals at this summit aren’t just talking; they’re actively driving change and proving that the fight against climate change knows no boundaries,” said Diallo, whose organisation’s mission is to accelerate the attainment of the African renaissance by advocating for and supporting United Nations programmes and priorities.
G77+China summit in Cuba calls for new global order (The Japan Times)
The G77+China, a group of developing and emerging countries representing 80% of the world’s population, kicked off a summit in Cuba on Friday with a call to “change the rules of the game” of the global order. The meeting comes at a time of growing frustration with the Western-led world order amid widening differences over the Russian war in Ukraine, the fight against climate change, and the global economic system.
Cuban President Miguel Diaz-Canel said that developing countries were the main victims of a “multidimensional crisis” in the world today, from “abusive unequal trade” to global warming. United Nations chief Antonio Guterres is joining some 30 heads of state and government from Africa, Asia and Latin America at the two-day summit in Havana.
Trade Data Shows Ukraine War Consolidated Political Blocs [Infographic] (Forbes)
Taking January 2022 as a starting point for an index calculation, the World Trade Report 2023 reveals that global trade between geopolitical blocs, for example between Western bloc countries in the Americas and Europe and Eastern bloc countries like China, Russia and Saudi Arabia, has decreased by more than 10% between the start and the end of last year alone. Another report by the WTO from earlier this year sees diversification patterns emerging after Russia’s invasion of Ukraine.
Leapfrogging to prosperity through Science, Technology and Innovation (UNEP)
Many developing nations are reeling under climate change. Struggling with nature and biodiversity loss – including desertification. Choking with pollution and waste. These challenges drive other crises. Human health. Cost of living. Poverty. Hunger. Conflict. And there is, of course, massive injustice inherent in the triple crisis, particularly climate change. So, it is understandable that trust is low. But every nation of the world must now work, together, towards a low-carbon, nature-positive, pollution-free future. It is time for unity, not division. There is too much at stake, for all of humanity.
That is not to say that every country should follow the same path.
Developing nations have a responsibility, primarily to themselves and their citizens, to take an entirely different path to prosperity. To reap the benefits of development that prioritizes a clean, healthy and sustainable environment. As President Ruto of Kenya told the Africa Climate Summit, the developing world needs “an audacious leapfrogging”. Science, technology and innovation, or STI, gives developing nations the chance to not just leapfrog, but to bound energetically into a future of prosperity, resilience and equity. STI has proven its worth many times in the environmental sphere. In dealing with persistent organic pollutants. In solar tech and electric vehicles. In pivoting the cooling industry to protect the ozone layer and climate.
Trade and climate change: A Q&A with UNCTAD deputy Pedro Manuel Moreno (UNCTAD)
Will a new global fund deliver for nature? (China Dialogue)