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SA eyes growing trade, exporting coal to Vietnam (SAnews)
South Africa is looking forward to broadening existing bilateral trade with Vietnam, says Deputy President Paul Mashatile. ”As South Africa we’d like to increase our exports to Vietnam because we believe there is big potential for growth,” said the Deputy President on Friday. He was speaking at the President Guesthouse in Pretoria where he was hosting his Vietnamese counterpart, Vice President Vo Thi Anh Xuan on an Official Visit to South Africa.
“Vietnam is also interested in acquiring coal from South Africa and we’ll be able to provide that.” While bilateral relations have been characterised by “good progress”, the country’s second in charge is of the view that there is room for improvement in some areas. ”There will be areas, Vice President, where we will continue to ask for your support. But we want in particular to work with Vietnam on a number of peace initiatives that we’re engaged with.
Kenya scraps Shs11m deposit fee on Uganda-bound containers (Monitor)
The Kenyan government has announced that it is to remove deposit fees on containers carrying Ugandan goods at Mombasa port. Kenya Ports Authority has been charging $3,000 (about Shs11m) per container, which the Ugandan business community has always opposed, saying it increases import costs. The decision to scrap the fees was reached at in meeting between Ugandan and Kenyan authorities at Mombasa Port yesterday.
In a statement issued yesterday, Capt William K. Ruto Afni, the managing director of Kenya Ports Authority, said the scrapping of the fees will ease trade between the two countries. “Capt Afni said Uganda remains a key trade partner for Kenya as its exports and imports passing through Mombasa are increasing. Almost 50 percent of the costs incurred by most Ugandan traders go into handling port and transport expenses. If these costs were mitigated price levels would fall significantly,” the statement reads in part. According to the existing rules, importers face a $40 daily charge 15 days from the time their goods reach the country, besides the $3,000 deposit paid to the shipping line. If the trader fails to return the container on time, he or she forfeits the deposited amount.
Tanzania’s tourism industry bounces back with 37.2% increase in tourist arrivals (Business Insider Africa)
The recent data from the Bank of Tanzania reveals that tourism has staged an impressive recovery, contributing $2.99 billion to foreign exchange earnings in July 2023, compared to $1.95 billion in July 2022.
According to the Bank of Tanzania, this represents a 33% surge in service receipts, reaching $5.49 billion in July 2023, up from $4.12 billion in July 2022. The bank also noted that this resurgence in tourism and increased earnings from gold have played a pivotal role in boosting Tanzania’s service earnings to over $5 billion for the first time in its history.
In 2019, Tanzania’s tourism sector generated approximately $2.52 billion, but by December 2020, its earnings had dropped significantly to just $1 billion. Gold emerged as the country’s primary foreign exchange earner during this period, generating $2.958 billion in December 2020.
Rwanda signs nuclear power generation deal (The East African)
The Rwandan government has signed a nuclear energy generation deal with Canadian-German nuclear company, Dual Fluid, as the country takes a big step in exploring nuclear in expanding its energy sources needed to power its development.
The first outcome of the deal signed this week by the Rwanda Atomic Energy Board (Raeb), will be the construction of a demonstration Dual Fluid nuclear reactor in the country, to be operational by 2026.What will follow is testing of the Dual Fluid technology expected to be completed by 2028.The nuclear energy project is expected to contribute up to 300 MW to the grid, according to Raeb CEO Ndahayo Fidele.
“This deal is intended to expand Rwanda’s energy generation mix, Dual Fluid has patents to this technology, it will provide laboratory equipment and set it up, train our people in this technology and conduct tests.” “Next will be the construction of a plant to generate nuclear energy to be added to the grid,” said Ndahayo.
SA to host Agoa summit after threats by US lawmakers to pull plug (IOL)
Minister in the Presidency Khumbudzo Ntshavheni has confirmed that South Africa will host the African Growth and Opportunity Act (Agoa) summit in November. This is despite earlier threats that the summit could be moved from South Africa to another country after calls by US lawmakers to move the summit away from South Africa because of Pretoria’s alleged involvement in the supply of weapons to Russia.
Finance Minister Enoch Godongwana, Trade and Industry Minister Ebrahim Patel and Ntshavheni met with senior officials in the US a few months ago to try and get the Agoa deal extended. They even met with Coons, and Ramaphosa’s national security adviser Sydney Mufamadi met his US counterpart Jake Sullivan a few months ago to discuss this matter.
US Trade Representative Katherine Tai was in constant contact with Patel over the renewal of the Agoa deal, which is due to expire in 2025. Patel wanted Agoa to be renewed by 2024. Ntshavheni confirmed that the Agoa summit will go ahead as planned in November in South Africa.
President William Ruto joins US-Kenya business roadshow in San Francisco (ZAWYA)
Kenya’s President William Ruto will address leading US technology companies and investors on Friday at the US-Kenya Business Roadshow in San Francisco organised by the American government’s Prosper Africa initiative. The roadshow - also co-organised by the US Embassy in Nairobi - highlights the business and investment potential in Kenya’s booming tech sector, a statement from the US Embassy in Kenya said. The event is part of a three-city US-Kenya Roadshow tour showcasing opportunities for companies exploring doing business and investing in Kenya, it said.
Kenya is one of the United States’ most important African trading partners, and it has benefited greatly from the Africa Growth and Opportunity Act (AGOA), a preferential trade policy that will expire in 2025. The East African country is hoping to sign a free trade agreement (FTA) deal with the US. The two countries began discussions over the deal in 2020, under then-President Donald Trump and then-President Uhuru Kenyatta of Kenya. However, the administration of President Joe Biden has not pursued the FTA talks further, instead launched the US-Kenya Strategic Trade and Investment Partnership (STIP) in July 2022.
The roadshow started in New York City with a focus on the apparel sector, then traveled to Chicago on September 13 to highlight agri-business, and will conclude this week in San Francisco. Each stop featured a mix of panel discussions, business matchmaking, and networking.
Nigerian businesses poised to expand their footprints across the continent and lead intra-African trade growth (Afreximbank)
“Independence is only the prelude to a new and more involved struggle for the right to conduct our own economic and social affairs” – Kwame Nkrumah, Pan-Africanist and father of African independence.
“This statement made over 60 years ago continues to ring true today. It underlines the position that despite attaining political independence, Africa’s emancipation was far from complete and the quest for economic independence still lies ahead. This quest continues and makes it imperative for us to work collectively to find African solutions to the challenges facing our continent,” said Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade Bank, Afreximbank, when making a clarion call for Nigeria to lead the charge of African trade in her opening remarks at the High-Level Business Roadshow in Lagos, Nigeria.
Mrs. Awani noted that it also encourages the Nigerian Public and Private Sector to actively participate, take advantage of these opportunities to grow and expand their business, drive intra-African trade, and support economic integration under the AfCFTA. This trade fair is meant to bridge the gap on trade and market information.
“Afreximbank remains committed to contributing to Nigeria’s economic growth as evident in several flagship projects underway,” she reiterated. She emphasised that “Afreximbank intends to double its financing of intra-African trade to US$40 billion on a revolving basis by 2026, up from US$ 20 billion in 2021.”
The African Climate Summit (The Independent Uganda)
As Africa embarks on its industrialisation drive, supported by the African Continental Free Trade Area (AfCFTA), the realities of climate change are becoming more visible and acutely felt across the world. The continent faces an industrialisation journey unlike any other – it must lift millions out of poverty whilst adapting to climate change. The pathways to industrialisation will also be influenced by the transmitted effects of policies enacted elsewhere to mitigate climate change.
As highlighted by the African Climate Summit (ACS) in Nairobi, there are major new economic opportunities for Africa in view of the green transition: it supplies many of the critical raw materials inputs into required technologies. On the other hand, there is a need for greater understanding of the transmitted effects coming from mitigation policies in end markets, which, when combined, may induce a ‘green squeeze’ unless African producers and exporters have greater capacity to adapt to changing norms and standards.
With regard to entering new value chains, demand for critical raw material inputs into new technologies is rapidly increasing. However, the extent to which the continent can benefit economically from this situation depends on how much of the value addition in creating the final green technology products physically takes place on the continent.
ECOWAS consultative meeting on regional infrastructure financing (ECOWAS)
In a quest to address the infrastructure deficit faced by the ECOWAS region, the Authority of ECOWAS Heads of State during its 60th Summit held in December 2021 approved the ECOWAS Regional Infrastructure Master Plan. This masterplan contains 201 integrated regional projects (146 regional investment projects and 55 soft projects) covering the Energy, ICT, Transport and Water Sectors and is estimated at $131 billion.
Mindful of the huge capital outlay required for the implementation of the Masterplan, there is clearly an urgent need for a concerted regional effort to confront this challenge of sustainable infrastructure financing. To this end, the PPDU convened a Consultative Meeting on Regional Infrastructure Financing on 7-8 September 2023 in Accra, Ghana. The meeting brought together the key actors in infrastructure resource mobilization from ECOWAS Member States and Development Partners in order to discuss on modalities of facilitating access to infrastructure finance. The meeting also enabled Development Partners to apprise the key actors on innovative financing instruments such as Green Financing.
The meeting discussed on a number of thematic issues on regional infrastructure finance and made a number of recommendations. Key among these is the need to integrate climate change and sustainable development into infrastructure projects in order to benefit from green financing opportunities. Furthermore, there was a strong recommendation for Development Banks and Regional Partners to leverage their interventions in the region on the ECOWAS Regional Infrastructure Masterplan.
Rwanda to become hub for AI research in Africa (The New Times)
As Artificial Intelligence (AI) continues to take the world by storm, Rwanda is set to host a global technology company that will conduct AI research and solutions for Africa. The London-based company, InstaDeep, will open its office in Kigali, said CEO Karim Beguir during an annual meeting of the African machine learning and artificial intelligence community with the mission to strengthen African AI, on September 8.
Rwanda is recognised as one of the first African nations to introduce a national AI policy. This policy focuses on six key areas: AI literacy, infrastructure, data strategy, AI adoption in both the public and private sectors and ethical implementation. “Rwanda is at the forefront of policy, with the recent example of hosting a top AI global conference—ICLR—for the first time in Africa. Having an office in Kigali makes it possible for us to give many more opportunities for African AI talent from all corners of the continent.”
Currently, InstaDeep is present in Tunis, London, Lagos, Dubai, Berlin, Cape Town, Paris, Boston, and San Francisco.
Africa’s payment revolution takes centre stage at Sibos 2023 (Trade Finance Global)
Over the past year, Africa has made notable strides in digitizing its payments landscape, culminating in South Africa’s recent entry into the global low-cost real-time payments network. “From the launch of PayShap and the rapid payments platform in South Africa’s modernization drive to the progress made by the Southern African Development Community’s Transactions Cleared on an Immediate Basis (TCIB) Payment Scheme, Africa continues its push for financial inclusion,” said Roshan Moonsamy, Interim CEO at BankservAfrica.
PayShap, a revolutionary digital payment platform based in South Africa, has played a pivotal role in reshaping the country’s financial landscape. With a steadfast commitment to modernization and accessibility, PayShap has rapidly gained ground, nearing an impressive milestone of one million transactions. This innovative platform has simplified financial transactions, offering a user-friendly experience that empowers both individuals and businesses to manage their finances seamlessly. Its real-time capabilities ensure swift and secure payments, marking a significant contribution to South Africa’s modernization journey and the drive for financial inclusivity.
The Southern African Development Community’s (SADC) Transactions Cleared on an Immediate Basis (TCIB) Payment Scheme represents a remarkable leap towards enhancing financial cooperation within the SADC region. This initiative is focused on clearing and settling transactions immediately, streamlining cross-border payments and curtailing associated costs.
BankservAfrica, in collaboration with Rand Merchant Bank, is set to host the African Pavilion at Sibos, scheduled between September 18th and 21st in Toronto, Canada.
Samia wants EAC matters prioritised (Tanzania Daily News)
Samia Suluhu Hassan on Thursday said that the recent changes in the Ministry of Foreign Affairs and East African Cooperation are aimed at enhancing efficiency in dealing with various matters related to the EAC integration process. The Head of State revealed that in Dar es Salaam after swearing in 24 judges of the High Court and Court of Appeal and other government officials.
The President said that she was previously advised to form a new Ministry of East African Cooperation so that issues relating to the regional bloc could be given priority but she could not do so because the decision would place more financial burden to the government. “I have decided to appoint the two executives who are experienced in international affairs. Thus they are in better position to deal with EAC issues.”
“The aim is to address the shortcomings that were noted when dealing with issues of East African Cooperation, especially on integration and participation in the debate of having single currency, as more countries want to be part of the regional bloc,” said President Samia.
The African Development Bank and the Alliance for Financial Inclusion (AFI) have renewed a project partnership to support policy and regulatory reforms increasing access to financing for Africa’s women-led small and medium-sized enterprises, for a further four years.
The Bank’s Gender Equality Trust Fund will contribute over $4 million in grant funding to the project. The announcement came on 13 September during the 2023 AFI Global Policy Forum in Manila. AFI is a global policy leadership alliance owned and led by central banks and financial regulatory institutions with the common purpose of advancing financial inclusion around the world.
Under the new agreement, the African Development Bank and AFI will carry out new research in 13 additional African countries to identify opportunities for reform in policies and regulations that would have the greatest impact in addressing obstacles to accessing finance. The partners will work with policymakers, financial regulators, and other key stakeholders across the 20 target countries to design and implement these reforms.
The Bank’s flagship Affirmative Finance Action for Women in Africa (AFAWA) initiative will implement the project in conjunction with AFI. AFAWA works to close the finance gap for African women entrepreneurs.
Validation Workshop on the AU Commission Gender & Youth Mainstreaming Framework (AU)
Women and Youth form the biggest part of Africa’s population at about 75%. Yet, they face significant socio-economic barriers that constrain their ability to contribute meaningfully to their communities, countries, and continental development and jeopardizes their opportunity to fully unleash their potential to ensure the realization of an Africa that is people driven as per Agenda 2063’s Aspiration 6.
From 14-15 September 2023, a validation workshop on the development of the AUC Gender & Youth Mainstreaming Framework in aims to compile the active efforts being deployed and the policies being implemented separately under the respective thematic areas in regard to women and youth in a common, inclusive and comprehensive document that reflects both demographics, needs, constraints and characteristics.
Addressing the workshop, Ms. Prudence Ngwenya, Director, WGYD underscored that gender and youth mainstreaming represents a pivotal paradigm shift in our approach to societal progress and development. “At its core, this multifaceted concept recognizes that achieving sustainable and inclusive growth requires deliberate and comprehensive integration of gender and youth considerations into all aspects of policies, programs, and initiatives.”
She further adder that “Gender mainstreaming involves systematically analyzing and addressing the different needs, roles, and opportunities of individuals based on their gender identity, with the aim of rectifying existing disparities and fostering gender equity. Simultaneously, youth mainstreaming acknowledges the unique potential, perspectives, and challenges that young people bring to the table. It seeks to empower youth by actively involving them in decision-making processes and creating opportunities for their meaningful participation in various spheres of society. Together, these approaches drive social and economic progress by promoting diversity, equity, and inclusivity, ultimately shaping a future where all individuals, regardless of their age or gender, can fully contribute to and benefit from societal advancements,” said Ms. Prudence Ngwenya.
A meeting of African ministers in charge of transport and energy held from12-15 September on the theme, “Accelerating Infrastructure to Deliver on the AU Agenda 2063 Aspirations” has concluded with an action-oriented Zanzibar Declaration aimed at spurring the Continent’s transport and energy sectors. Convened under the auspices of the African Union’s Fourth Ordinary Specialized Technical Committee on Transport, Transcontinental and Interregional Infrastructure and Energy
Speaking at the Ministerial segment of the meeting, Robert Lisinge, Acting Director of the Private Sector Development and Finance Division at the ECA called on member states to address the barriers limiting private sector investments in infrastructure and energy, urging them to facilitate investments by creating conducive policy and regulatory environments. “The requirements of continental infrastructure development and the aspirations of Agenda 2063 and Agenda 2030 far exceed current levels of public sector investment,” he said.
He stressed that over the next ten years, there is a need for concerted action to address energy transition and security issues, in order to open up opportunities for the transformation of the continent. He cited ECA’s analytical work on the AfCFTA, which demonstrates there are investment opportunities for infrastructure development in the area of transport and energy and added that digitization and artificial intelligence offer great opportunities for the efficient operation of infrastructure.
According to the Zanzibar Declaration, the Ministers adopted the AUC and ECA continental regulatory framework for crowding-in private sector investment in Africa’s electricity markets. This framework will be used as an instrument for fast-tracking private sector investment participation in Africa’s electricity markets. The Declaration also called on ECA and partners to develop a continental energy security policy framework as called for by the 41st Ordinary Session of the Executive Council and an Energy Security Index and Dashboard to track advancements in achieving Africa’s energy security.
Experts in infrastructure and energy sectors push to accelerate development in Africa (AU)
Shipping giant Maersk is seeing tentative signs of a bounce back in global trade (CNBC)
There are tentative signs of a bounce back in global trade, according to the CEO of shipping titan Maersk. “Barring any negative surprises, we would hope for a slow pickup as we get into 2024, a pickup that will not be a boom like what we have known in the past few years, but certainly ... a demand that is a bit more in line with what we see in terms of consumption, and not so much an inventory correction,” Vincent Clerc told CNBC’s Silvia Amaro this week. Consumers in the U.S. and Europe have been key drivers in this demand uptick, Clerc said, and those markets have continued to “surprise on the upside.”
In 2022, the shipping firm warned of weak demand as warehouses filled up with unwanted goods, with consumer confidence stuttering and supply chains congested. The upcoming pickup would be fueled by consumption, he said, rather than the “inventory correction” which has featured heavily during 2023. Emerging markets are proving resilient, despite the difficult economic climate, Clerc said, particularly in the cases of India, Latin America and Africa.
But the road to bolstering global trade and growth isn’t necessarily a smooth one, as highlighted by IMF Managing Director Kristalina Georgieva in a recent interview with CNBC. “What we see today is very troubling,” Georgieva told CNBC’s Martin Soong on Sept. 10 on the sidelines of the Group of 20 nations leaders’ summit in New Delhi. “There is fragmentation in our world. For the first time global trade grows slower than the global economy, 2% trade, 3% global growth. If we want trade to become, again, an engine of growth, then we have to create corridors and opportunities,” she said, referencing a planned rail-to-sea economic corridor linking India with Middle Eastern and European countries.
Trade facilitation: Countries make steady but uneven progress (UNCTAD)
Despite geopolitical tensions and supply chain disruptions, countries continue to improve the trading environment by simplifying and digitalizing trade processes. According to the UN’s fifth global survey on digital and sustainable trade facilitation, an average of 68.6% -- up by 6% since 2021 – of the general and digital trade facilitation measures outlined in the landmark Trade Facilitation Agreement of the World Trade Organization (WTO) have been implemented by countries worldwide.
The survey analysed trade facilitation progress across 161 countries worldwide, as outlined in the “Digital and sustainable trade facilitation: Global report 2023” launched on 15 September. The survey shows that developed economies have implemented the most trade facilitation measures, leading the global pack with an overall rate of 85.3%.In comparison, 54 out of 90, or 60% of developing countries with a GDP per capita below $10,000 have achieved implementation rates of over 50%.
The average implementation rates for least developed countries, landlocked developing countries and small island developing states are similar, ranging between 53% and 61% -- significantly below the global average. This is in part due to persisting challenges related to weaker digital infrastructure and a lack of adequate legal framework to support cross-border data and documents exchanges.
The results reaffirm the need to step up technical assistance and capacity-building efforts to help these vulnerable economies bridge the existing implementation gap in trade facilitation.
Public Forum looks at how investment facilitation agreement can support sustainable future (WTO)
Noting that the outlook for FDI in 2023 appears weak, Ambassador Boza emphasized the great potential of an IFD Agreement, which would be “the first of its kind to set global benchmarks for helping WTO members create an environment conducive to attracting investment.” WTO members participating in the talks on investment facilitation for development (IFD) announced on 6 July the conclusion of the negotiations on the text of the Agreement following three years of intense text-based negotiations amongst over 110 WTO members at all levels of development.
New WTO publication underlines need to boost women’s participation in trade
New WTO publication provides insights into the world of export regulations and controls
Climate inaction puts lives on the line: WMO (UN News)
Insufficient progress towards climate goals is slowing down the global fight against poverty, hunger and deadly diseases, according to a report released on Thursday by the UN World Meteorological Organization (WMO). UN Secretary-General António Guterres echoed that message, warning that record temperatures and extreme weather were “causing havoc” around the world. The global response has fallen “far short”, Mr. Guterres insisted, just as latest UN data indicates that the Sustainable Development Goals (SDGs) are only 15 per cent on track at the midway point of the 2030 Agenda.
According to WMO, current policies will lead to global warming of at least 2.8 degrees Celsius above pre-industrial levels over the course of this century – well above the Paris Agreement target of 1.5°C. This year’s northern hemisphere summer has been the hottest on record, prompting the UN chief last week to reiterate his call for a “surge in action”.
In his foreword to the report, Mr. Guterres underscored that weather, climate, and water-related sciences can “supercharge progress on the SDGs across the board”.
Building Paris every week: Urgent need to cut emissions in construction sector (UN News)
‘Thriving economies’ critical to eradicating hunger and poverty: McCain (UN News)
“Thriving businesses and flourishing economies are the critical engines that will power global efforts to eradicate hunger and poverty, and strengthen international peace and security”, said Ms. McCain. “Sadly, today the humanitarian sector is one of the world’s biggest growth industries,” the WFP chief said. “War, economic turmoil, and increasingly, climate change and environmental degradation - are driving millions of people into poverty and despair each year.” Recalling that nearly 783 million people live in deep food insecurity, and 47 million of them in 50 countries, are on the brink of famine - while 45 million children under five suffer from acute malnutrition – Ms. McCain was pessimistic about the humanitarian crises ahead.
Rather than resign herself to “powerlessness” the WFP chief called for greater use of the private sector, which has over 200 years helped reduce global poverty through the power of private enterprise. She said the time has come, in the face of the new realities and budget cuts, to “rethink how we engage and find new models” of partnership. The WFP chief said a new and more effective collaboration would be of benefit to all.
Multiple shocks keep pushing world further away from development targets (FAO)
Halfway into the implementation of the 2030 Agenda for Sustainable Development, a lot of the progress made towards its food and agriculture-related targets has stagnated or reversed, compounding the challenges in eradicating poverty and hunger, improving health and nutrition, and combating climate change, according to a new report by the Food and Agriculture Organization of the United Nations (FAO).
The report, entitled Tracking progress on food and agriculture-related SDG indicators 2023, was published today, just days before world leaders gather in New York to attend the UN’s SDG Summit to review the state of the Agenda’s 17 Sustainable Development Goals (SDGs).
The main conclusions of the report are that while the world was already off track from meeting the SDGs even prior to 2020, the past few years have seen multiple shocks that have further stalled or even reversed progress across several targets. These include the lingering effects of the COVID-19 pandemic, the impact of armed conflicts around the world, high inflation, along with the escalating effects of the climate crisis.
The food and agriculture-related SDG indicators, of which FAO is among the UN agencies’ main custodian, are in a particularly critical state. The proportion of the world population facing chronic hunger in 2022 was about 9.2 percent, compared to 7.9 percent in 2015 (the latest FAO estimates put the global hunger figure for 2022 between 691 million and 783 million people). Investment in agriculture has stalled, there is no progress in conserving animal genetic resources, and forest area across the globe continues to shrink.
The Status of Women in Agrifood Systems (SWAFS) report, launched in April 2023, provides new evidence that demonstrates where gender gaps persist – costing sub-Saharan Africa USD 95 billion annually – and how they can be tackled. While the report brings forth alarming figures, it also highlights progress achieved, particularly in policymaking and women’s rights to land. It also contains clear calls to action that can be adopted by stakeholders in the private, public and international spheres – and those present at the Africa Food Systems Forum (AGRF) 2023.
The message delivered by the SWAFS report is clear. To achieve gender equality and women’s empowerment in agrifood systems, three main targets must be prioritized: investment in high-quality research and sex- and age-disaggregated data; interventions at scale using proven approaches which close asset and resource gaps such as gender-transformative approaches; and intentional interventions focused on women’s empowerment. Hitting the three targets above could increase global GDP by 1 percent (USD 1 trillion), provide food security for 45 million people, and increase the incomes of an additional 58 million people and the resilience of 235 million people.
Quick links
Africa Adaptation Acceleration Program Partnership Forum 2023 – A Step towards Climate Resilience (AfDB)
Homegrown digital innovation key to unlocking Africa’s vast economic potential (Ventures Africa)
SADC and United States celebrate Signing of the SADC-USA Regional Development Objective Agreement (SADC)
Cuban President at G77: Challenges today caused by unjust world order (Al Mayadeen)
Transformation of development cooperation in post-COVID-19 world (Daily Sabah)
UN marks halftime for the SDGs (UN News)
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SA economy demonstrates resilience through multiple gains (SAnews)
Despite the prevailing difficult global economic conditions, South Africa’s economy continues to demonstrate its resilience, with multiple gains being achieved towards the country’s economy, investment and trade.
These include the 0.6% expansion of the Gross Domestic Product (GDP) in the second quarter of 2023, a R5 billion investment pledge by auto component manufacturers, job creation at the Rainbow Chickens facility in Hammarsdale and an investment by Stellantis to develop a greenfield manufacturing facility.
“Cabinet is pleased with the resilience of the South African economy as shown by South Africa’s GDP second quarter data, as released by StatsSA. This is despite the prevailing difficult global economic conditions and the persistence of the electricity situation in the country,” Minister in The Presidency Khumbudzo Ntshavheni said on Thursday. According to Stats SA, six industries on the supply side of the economy grew in the second quarter, with manufacturing and finance driving much of the upward momentum.
“The petroleum, chemical products, rubber and plastic products division made the largest contribution to the increase in the second quarter. The basic iron and steel, non-ferrous metal products, metal products and machinery division also made a significant contribution to the growth in this industry,” the Minister said.
Kenya exports to Somalia up 76pc after resumption of miraa trade (Nation)
Kenya’s exports to Somalia nearly doubled in the first half of 2023 following the resumption of miraa exports to the Horn of Africa country that has now zoomed past the Democratic Republic of Congo (DRC) and Ethiopia to become the fifth largest destination of the country’s goods in Africa.
Latest data from the Central Bank of Kenya (CBK) shows Kenya exported goods worth a record Sh11.4 billion to Somalia in the first six months of the year, underlining a 76 percent growth from Sh6.5 billion in the same half last year.
The increase saw Somalia become Kenya’s fifth largest export destination on the African continent only behind Uganda, Tanzania, Rwanda, and Egypt, and above DRC and Ethiopia which previously used to rank above it. This comes a year after Mogadishu lifted a two-year-long ban on Miraa imports from Nairobi after talks between then President Uhuru Kenyatta and Hassan Sheikh Mohamud who had been newly elected as the Somalia President.
The miraa exports to Somalia were initially capped at 19 tonnes daily when the ban was lifted in July last year but was later increased to 50 tonnes daily. The lift was a major boost to farmers who had been forced to look for alternative markets for their produce, heavily affecting farmers in Mt Kenya East and West who grow the crop.
Commonwealth supports Southern African trade officials to leverage e-commerce opportunities (The Commonwealth)
The Commonwealth Secretariat and United Nations Conference on Trade and Development (UNCTAD) held a two-day workshop in Johannesburg this week for the Southern African Customs Union (SACU) Member States on leveraging emerging digital infrastructure and digital trade opportunities.
Focused on the need for the development of a regional framework on e-commerce within the SACU region, 50 trade officials from the Member States of Botswana, Eswatini, Lesotho, Namibia, South Africa and the SACU Secretariat discussed methods to advance work on e-commerce at the regional level and identified key elements to be considered in developing the framework.
In her opening remarks, the Chairperson of SACU and Deputy Principal Secretary of Lesotho’s Ministry of Trade, Tsireletso Mojela said: “The outcome of our deliberations should assist SACU to draw insights that will help strengthen policy and practical interventions towards addressing the changing landscape for cross-border trade, and how SACU can collectively facilitate digital e-commerce trade in the Common Customs Area.”
Senior Director of the Trade, Oceans and Natural Resources Division of the Commonwealth Secretariat, Paulo Kautoke reiterated that: “To ensure that our Member States continue to leverage the emerging digital infrastructure and digital trade opportunities, the Secretariat is determined to address the challenges that impede the expansion of e-commerce across the Commonwealth and ensure that the evolving digital technologies do not widen the existing digital divide.”
Intra-COMESA exports shoot up (The Herald)
Intra-COMESA exports have increased from US$1.5 billion in 2000 to US$12.8 billion in 2021 as part of the significant achievements under the free trade area regime. This came out at the two-day 10th COMESA Annual Research Forum which started yesterday in Lusaka Zambia. The event is part of efforts to strengthen integration and trade in the region and the African continent.
Speaking at the opening of the forum, Secretary General of COMESA, Ms Chileshe Kapwepwe said: “Despite this growth, intra-COMESA exports remain low at about nine percent of its total exports. Recent studies indicate that inter-COMESA export potential is in excess of US$100 billion,” she noted. She added that a lot more work, including research was required to unlock the potential and enable Member States to better utilise the preferences embedded in the Free Trade Area regime.
As the regional bloc approaches its 30th anniversary next year, she said it was important to take stock of its regional integration journey, its achievements, its challenges, and the prospects for promotion of further regional economic integration as an instrument for sustainable economic growth and development.
COMESA infrastructure ministers call for resource mobilization to close regional infrastructure gap (COMESA)
Ministers of infrastructure from the COMESA region conducted their 13th meeting in Kigali, Rwanda with a call for mobilization of funds from national resources, public private partnerships, foreign direct investment and development partners to close the rising infrastructure gap. The meeting which was attended by ministers and ministerial representatives responsible for transport and communications, information technology and energy, noted that since the onset of the COVID -19 pandemic, the infrastructure gaps have increased as resources were shifted towards the needs of the pandemic.
It is estimated that African infrastructure gap is have increased in the year 2020 to between $59 billion and $96 billion.
Rwanda Minister for Minister of State in the Ministry of Infrastructure, Eng. Patricie UWASE, who opened the meeting noted that despite the positive efforts of Member States, regional infrastructure is still lacking in terms of its quantity and quality. “In addition, our national policies sometimes could hinder easiness of trade, mobility and logistics,” 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.
Niger receives 265 trucks of basic supplies from Burkina Faso amid ECOWAS embargo (GhanaWeb)
The military junta in Niger has affirmed relations with their counterparts in Burkina Faso relative to supply of basic commodities. A report by the state-run Radio, Television Niger (RTN) revealed that Burkina Faso had delivered 265 trucks of supplies to Niger this week. The Minister of Commerce and Industry, Seydou Asman, was at the Niamey-Tillabery Regional Customs Directorate to receive the trucks which had various goods from Burkina Faso.
The intervention is part of the supply of basic necessities initiated between the two neighbours in the face of what the junta has declared “unfair ECOWAS sanctions.” ECOWAS slapped economic sanctions on Niger, including general and targeted sanctions on the landlocked country after the July 26 coup, including border closures and trade freeze.
Already the two countries have also agreed a military-level agreement that allows Burkina Faso to deploy men and logistics to support Niger in case ECOWAS carries out a threat to militarily engage the junta.
Integrating Sustainability Standards in South-South Trade Policies (Farmers Review Africa)
Trade between developing countries and regions—known as “South–South trade”—is growing rapidly. In the past couple of decades, its value has grown almost tenfold, from USD 600 billion in 1995 to USD 5.3 trillion in 2021.
A new report from the International Institute for Sustainable Development (IISD) explores how governments in developing countries are using voluntary sustainability standards (VSSs) in their trade policies to ensure this growth benefits small-scale producers, communities, and the environment. VSSs are private or public initiatives that set requirements for producing, consuming, and trading products more sustainably. However, small-scale producers in developing countries can face challenges participating in them, such as high certification costs and a lack of support, incentive, or information on how to adopt their practices.
“Governments in developing countries are increasingly recognizing the benefits of working with VSSs to promote trade that supports more sustainable production practices while also addressing some of the concerns associated with their adoption,” said Steffany Bermúdez, Policy Advisor, IISD.
“We found that integrating VSSs in South–South trade policies can help reduce some barriers to trade for small-scale producers and SMEs,” said Florencia Sarmiento, Policy Analyst, IISD. “It can also encourage trust and recognition in VSSs, lower the costs of compliance, increase demand for VSS-compliant products, and promote harmonization between different standards.”
Ruto, Adesina Backs African Youths’ Demand for Involvement in Setting Climate Policies (THISDAYLIVE)
President of African Development Bank Group, Dr. Akinwumi Adesina and the President of Kenya, William Ruto, have backed the demand of African youths for greater involvement in setting national and international climate policies, insisting that African youths are the biggest asset to the African continent and the global population.
Both leaders made the declaration at the recently concluded Africa Youth Climate Assembly, which held in Nairobi, Kanya, where issues of accelerated establishment of a Global Green Bank and a New Global Financial Pact, were discussed. The discussions were aimed at prioritising young people and their interests in climate financing, at a time when hundreds of young people from across Africa are demanding a significant role in decision making for climate action.
In response to the Declaration, President Ruto and the Bank Chief recognised Africa’s youth as the biggest asset for Africa and the whole world, praising their dynamism and innovation. Ruto and Adesina backed their demand for greater involvement in setting national and international climate policies.
Ruto highlighted his government’s initiative to establish smart cities to tackle unsustainable settlements and cut pollution in a bid to foster environmentally sustainable development. One way of investing in young people is by providing quality education and skills to help them tackle future challenges, Ruto said. He explained that his government had committed the largest budget in the country’s history to education – 630 billion KES ($433 million), representing over 27 per cent of the total annual budget. Adesina who had similar sentiments, underscoring the critical nature of youth investment in fostering growth and stability on the continent, said: “The biggest risk in this continent is not investing in the youth. The youth need investment, not empowerment. The African Development Bank has set up youth strategy to provide 25 million jobs. So far, we have developed 15 million jobs: ten million in the formal sector and five million in the informal sector.”
Today, the UAE is participating in the 8th session of the Belt and Road Initiative Summit in Hong Kong, with the aim of enhancing joint trade and investment cooperation with governments and the private sector, especially in the new economy, technology and entrepreneurship. The UAE has broad economic and trade relations with the People’s Republic of China, which is one of the country’s most important strategic partners in the world, as well as with countries that will contribute to the Silk Road trade corridors connecting the East with the West.
Since the launch of the Belt and Road initiative, the UAE has been leveraging its development potential, strategic location, and pioneering economic role in the region to be an active participant in it. The initiative is considered a favourable opportunity to advance the country’s development and investment plans regionally and internationally, especially since the initiative focuses on the UAE’s pivotal role in international trade and is in line with the objectives of the UAE Centennial. The economic partnership agreements the UAE forged as part of the initiative constitute an essential pillar of the UAE’s non-oil trade, as it contributes to approximately 30 percent of the UAE’s non-oil trade.
The UAE has advanced logistical capabilities with its state-of-the-art airports and international ports, which are now classified as the largest container handlers in the Middle East region, along with its capabilities in transporting large quantities of goods, which can be used to integrate land routes with the shipping lanes in the Chinese Belt and Road Initiative. In light of this competitive advantage of the UAE, the Belt and Road Initiative will enhance its capacity and position as a global centre for merchandise trade and logistics services, strengthening its position as a strategic point of contact between Asia, Europe and Africa.
Steel industry highlights importance of trade policy in decarbonisation efforts ahead of COP28 (WTO)
In her opening remarks, Director-General Ngozi Okonjo-Iweala noted that the steel industry needs the right trade policy environment to support its decarbonization efforts, stressing the importance of an environment which should enable investments in breakthrough technologies, ensure availability of critical inputs, and increase the demand and cost competitiveness of green steel. Noting that carbon pricing has an important role to play in reaching net zero for greenhouse gas emissions, Rajiv Mangal, Vice President for Safety, Health and Sustainability of Tata Steel, said that implementation of a Carbon Border Adjustment Mechanism could help provide a level playing field for steel in the European Union by ensuring that the cost of carbon is passed on to consumers.
High-level panel discusses inclusive strategies for climate action, sustainable trade (WTO)
Empowering vulnerable communities in decision-making processes is imperative for addressing the complex challenges posed by climate change, said participants in a high-level panel at the 2023 Public Forum on 14 September. They discussed how a holistic approach embracing diverse perspectives can help to develop comprehensive strategies and pave the way for a sustainable future for communities across the globe.
In a video message, Hindou Oumarou Ibrahim, President of the Association of Indigenous Women and People of Chad, highlighted the dangers facing indigenous people as a result of climate change. She urged the global community to pursue a new trade model not powered by fossil fuels and to invest more in the African continent to boost the growth of renewable energy. “Only 2% of renewable energy investment goes to Africa. Climate change is a threat to our survival. It’s time for all participants in climate change discussions to make a real move,” she said.
“People who are closest to the problem are closest to the solution,” Margot Brown, Senior Vice President of Justice & Equity at the Environmental Defense Fund said, emphasizing the need for decision-makers to listen to the needs of marginalized people and to invest more in building capacity. She also stressed the importance of long-term thinking when introducing green technologies. We should consider the entire ecosystem and assess the impact of these technologies on seven generations to come, she added.
Better Cotton to discuss traceability at WTO Public Forum in Geneva (Fibre2Fashion)
Better Cotton, the world’s largest cotton sustainability initiative, will this week participate in a panel discussion at the World Trade Organization’s (WTO) Public Forum focusing on the topic of traceability within fashion and textile supply chains. The session, titled: ‘Traceability as the Key Enabler for Improving the Sustainability of Cotton Value Chains’ will take place September 15 at the Centre William Rappard, in Geneva, Switzerland, Better Cotton said in a press release.
Traceability will be discussed in the context of how it could benefit fashion and textile supply chains facing tightening due diligence legislation, in addition to investor pressure and changing consumer expectations around sustainability. Traceability will connect farmers to the supply chain and form the foundation for an Impact Marketplace Better Cotton is developing, through which farmers would be rewarded for their transition to more sustainable farming.
After two years of development, Better Cotton will this year launch its own traceability solution, capable of providing supply chain visibility for industry stakeholders. With this, cotton will be fed through new Chain of Custody models that monitor the flow of product throughout the value chain.
World Investment Forum to mobilize financing for climate, energy, health and food (UNCTAD)
The UN Conference on Trade and Development (UNCTAD) will hold the World Investment Forum 2023 to rally investments for climate action, clean energy, health care, food security and other development needs.
“As the world faces multiple crises, we urgently need investment stakeholders worldwide to ignite action, unlock more funds and channel them to vital sectors key to reducing the effects of these crises,” UNCTAD Secretary-General Rebeca Grynspan said. According to UNCTAD’s World Investment Report 2023, overlapping crises such as the war in Ukraine, high food and energy prices and debt pressures led to a 12% decline in global foreign direct investment in 2022.
Dr. Thani Al Zeyoudi, minister of state for foreign trade in the United Arab Emirates (UAE), said UNCTAD can play a major role in addressing and ultimately mitigating these interlocking issues. “It is an undeniably challenging moment for the global economy, and for the economies of the Global South in particular. As we confront the triple shocks of inflation, geopolitical uncertainty and climate change, balancing prosperity and sustainability requires a combination of innovation, investment and, perhaps above all, will,” Dr. Al Zeyoudi said.
He added that the forum provides an opportune moment for the global investment community, supported by policymakers and institutions, to mobilize and direct capital to projects that can fast-track environmentally responsible and socially beneficial development.
Experts make case for tackling climate and sustainable development together (UN News)
In the first-of-its kind report launched on Wednesday, a group of independent experts use available data and evidence to outline the steps governments should take to maximize the impact of agreed policies and actions to address the worsening climate crisis and lagging achievement of the Sustainable Development Goals (SDGs).
“We must get the SDGs on track and keep the goal of 1.5 degrees alive,” said Li Junhua, the Under-Secretary-General for Economic and Social Affairs, presenting the report’s findings during an online event at the UN Headquarters. He stressed the need for an integrated approach to strengthen synergies between these two global agendas.
The SDG Progress Report released earlier in the year highlights that only 12 per cent of the targets are on track, while over 30 per cent of the SDGs have either stalled or regressed. Meanwhile, the Sixth Assessment Report of the IPCC, unequivocally shows that to keep the global temperature within 1.5°C limit, emissions need to be reduced by at least 43 per cent by 2030 compared to 2019 levels. The Executive Secretary of UNFCCC, Simon Stiell, echoed Mr. Li’s sentiment, stating: “Achieving the Sustainable Development Goals and stabilizing our climate to build resilient societies are two sides of the same endeavor.”
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SA agricultural exports amounted to $3.4bn in second quarter (IOL)
South Africa’s agricultural exports amounted to $3.4 billion (R64bn) in the second quarter of this year, up by 0.1% year-on-year, according to data from Trade Map.
While South Africa’s agricultural exports in the first half of the year had been encouraging, the export earnings would likely soften this year from last year’s record, the Agricultural Business Chamber (Agbiz) said on Monday.
Agbiz chief economist Wandile Sihlobo said despite challenges in key export markets such as the EU in the case of citrus, the products that dominated the export list this quarter were citrus, maize, apples and pears, wine, sugar, soybeans, wool, avocados, pineapples, fruit juices, nuts, and grapes.
“Importantly, this good export performance was not only a function of price but also improved volumes. The prices of some agricultural products have declined notably from the 2022 levels,” Sihlobo said.
New report highlights how imported cement destabilises the economy (Engineering News)
The negative impact on the South African economy caused by substituting local cement production with imported cement was highlighted in a report released by cement manufacturer PPC in conjunction with the Centre for African Management and Markets (CAMM) at the Gordon Institute of Business Science (GIBS), in Johannesburg, on September 13.
The report provides an overview of PPC’s contribution to the South African economy and forecasts the potential social and economic impacts of a significant displacement of local cement production in favour of imported cement.
“The report tangibly demonstrates the serious and complex threats that cement imports pose to our industry, society, and country’s development,” PPC South Africa and Botswana MD Njombo Lekula said. The report shows a potential R2.6-billion-a-year loss in economic value in an already-strained economic environment. The report shows that PPC was a major economic contributor in South Africa, with the business’ operations adding about R8.8-billion to the national gross domestic product (GDP) last year through its value chain – equivalent to 0.13% of the country’s total GDP.
Mutorwa ties railway to trade in Africa (New Era)
If Namibia is to reap maximum returns from the African Continental Free Trade Area (AfCFTA), it has to invest heavily in railway infrastructure, works minister John Mutorwa has said. He was referring to the envisaged railway lines to transport goods from the Port of Walvis Bay to the rest of Africa and vice versa .”We don’t have any alternative if we are talking about inter-Africa continental trade; those are the facilities that we need,” he said during a media briefing at Rundu last week.
“The conclusions of the feasibility study consultants are that this railway line, if everything, as recommended, is implemented, is viable. They have done the environmental assessment studies also, looking at the environment and how that railway line will impact the environment here and through the game park,’’ he said.
Now, the big issue from here on is the funding, he said, noting: “The ministry of finance is more in the lead now but we are also there to see how we are going to fund this because it is not only a Namibian railway line.
Nigerian importers to begin clearing goods from Cotonou border (Premium Times Nigeria)
The Nigerian government announced Tuesday that Nigerian importers would soon be free to legally import their goods from the ports in Cotonou, Benin Republic. The acting Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adeniyi, disclosed this while speaking to journalists after a two-day working visit of Alain Hinkati, Director-General of Customs, Republic of Benin, to Nigeria.
In August 2019, the federal government ordered the closure of land borders to halt smuggling along the borders. However, the government in 2021 opened border points across the country, Seme, in the South-west, Ilela and Maitagari in the North-west, and Mfun in the South-south. The government maintained that the ban on the importation of rice, poultry, and other products still subsists.
Speaking on Tuesday, Mr Adeniyi said the decision to set up a clearing point for Nigeria-bound goods was one of the highlights of the two-day working visit of the Director-General of Customs, Republic of Benin, to Nigeria.
“We are building confidence in the system offered by the Republic of Benin. Our importers are using their ports and vice-versa. If there are people in the Benin Republic who want to use our ports, we try to build trust in our systems.” By this agreement, what it means is that Nigerian importers willing to use the ports in Cotonou can have their goods cleared in those ports because there would be an opportunity for them to pay duties on goods that are liable for payment of duties. He explained that the NCS is currently in the final stages of integrating its IT systems with the Federal Road Safety to curb illegal entry of vehicles.
Afreximbank to increase intra-African trade financing to $40bn by 2026 (TheCable)
Kanayo Awani, the executive vice-president of African Export-Import Bank (Afreximbank), says the financial institution plans to increase its intra-African trade financing to $40 billion. Awani said Afreximbank plans to hit the mark by 2026 as it continues to support the Africa Continental Free Trade Area (AfCFTA) initiative. She disclosed this on Monday, at the 2023 intra-African trade fair (IATF) business roadshow in Lagos, according to NAN.
As of 2021, Awani said, Afreximbank’s intra-African trade fund stood at $20 billion, noting that with the bank improving its backing of African trade and investments, there would be a 100 percent increase in six years. She also said part of the financial backing earmarked for intra-African trade is $1 billion to support the funding of the AfCFTA, and a $10 billion grant to facilitate the establishment and operation of the adjustment fund.
“We are also partnering with the AfCFTA Secretariat and AU to ensure a successful implementation of the Pan-African Payments and Settlements System (PAPSS), with the view to facilitating the payment and settlements of trade transactions in local currencies,” the executive vice-presidents said. “This will address the challenge of currency inconvertibility and foreign exchange shortages that hamper intra-African trade.”
Also, to address the challenge faced during the transportation of goods across multiple borders in Africa, she noted that the bank created the Afreximbank African collaborative transit guarantee scheme, using technology-enabled transit bonds to ensure seamless movement of goods. According to Awani, the bank also created the African trade facilitation programme (AFTRAF) to support its intra-African trade financing.
Dollar scarcity, lack of credit add to NTBs hurting EAC trade (The Star)
Difficulties in securing foreign currencies and lack of affordable credit in the wake of rising interest rates are major challenges facing traders in the East African Community, a report indicates. These add to delays in payments by government for supplied goods and services (pending bills), securing government tenders and obtaining tax refunds, tax appeals, rulings, and customs valuation.
According to the Report on the Ease of Doing Business in the EAC 2023 by the East African Business Council (EABC), on behalf of the Germany Corporation for International Cooporation (GIZ), there is also persistent cross-border restrictions and high trading costs which are hurting intra-EAC trade.
While EAC has harmonised tariffs and pushed for the ease of movement, traders are still facing challenges which vary from country to country. This is despite the region experience steady increases in trade volumes in post-Covid era, driven by reopening of economies and demand for goods and services. The region’s currencies also remain exposed to the strengthening US dollar with traders struggling to secure enough dollars for trade, amid low usage of local currencies for payments.
Intra-EAC trade, accounting for imports and exports in the seven EAC partner states, grew from 13 per cent in 2019, valued at $7.1 billion (Sh1.04 trillion), to 15 per cent in 2021, valued at $9.5 billion (Sh1.4 trillion). By September 2022, EAC’s trade value reached $10.17 billion (Sh1.5 trillion), official data shows, representing a 20 per cent share of intra-trade within global trade, which stood at $62 billion (Sh9.1 trillion).
“Despite this progress, persistent Non-Tariff Barriers and protectionist tendencies by EAC Partner States have been identified as key factors hindering the growth of intra-EAC trade,” the report reads in part.
SADC Gas Long-Term Economic Growth (Energy Capital & Power)
The shift signifies the growing recognition of gas as a stable, long-term energy source, rather than a transitional solution. In Mozambique for example, a strong portfolio of Liquefied Natural Gas (LNG) projects aim to advance regional energy security while generating critical revenue for the country via exports.
Meanwhile, in Namibia, offshore success seen by energy majors such as Shell have underscored the long-term potential of gas for the region in terms of energy supply and economic progress. In South Africa, emerging helium and natural gas producer Renergen’s pioneering efforts highlight the potential of harnessing onshore gas for long-term security. The company’s onshore Virginia Gas Project represents a step towards reducing energy import dependency and promoting sustainable practices within South Africa.
Renergen believes that helium will be a game changer for South Africa, and is expected to play a crucial role in global markets, contributing to the development of semiconductors and microchips for example.
COMESA Infrastructure Meetings Underway in Rwanda (COMESA)
Regional infrastructure experts led by Permanent Secretaries from the 21 COMESA Member States have begun meeting in Kigali, Rwanda, today to review progress on the implementation of the ongoing priority projects. The two-day meeting is the 13th of the Joint Technical Committees on Transport and Communications, Information Technology and Energy.
Among the key projects under implementation include Regional Infrastructure Financing Facility Project, the Tripartite Transport and Transit facilitation Programme, the Establishment of the Navigation Line between Lake Victoria and the Mediterranean Sea Project, the Support to Air Transport Sector Development Programme, the Enhancement of the Governance and Enabling Environment in ICT Sector among others.
While addressing the delegates, Assistant Secretary General in charge of COMESA programmes, Dr Mohamed Kadah, called for innovative ways of financing infrastructure development, through public private partnership, given the prevailing high financing gaps. “Africa needs adequate infrastructure to ensure reliable energy, efficient transport, reliable communication systems, resilient sanitation and affordable housing. And indeed, Africa’s vast infrastructure deficit is a huge impediment to economic growth and regional integration,” noted Dr Kadah.
Ghana committed to ECOWAS single currency agenda (GhanaWeb)
Ghana remains committed to the Economic Community of West African States (ECOWAS)’s single currency agenda despite the current economic challenges facing the country, Chief Director of the Ministry of Finance, Ms. Eva Esselba Mends, has said. She said the country’s economic challenges would be reversed and sustained macroeconomic stability re-established.
Mrs Mends stated this at the 53rd meeting of the Technical Committee of the member states of the West African Monetary Zone (WAMZ) as part of the 2023 Mid-Year Statutory Meeting of the West African Institute for Financial and Economic Management (WAIFEM), West African Monetary Agency (WAMA) and West African Monetary Institute (WAMI), which began on September 5, 2023 and would end on September 15, 2023 and being hosted by the Ministry of Finance under the auspices of the Bank of Ghana.
The Chief Director of the Ministry of Finance said Ghana’s economic growth remained positive despite the significant impact of multiple crises, such as the COVID-19 pandemic, Russia-Ukraine war. “Government remains focused and resolute on restoring macroeconomic stability. Ghana, like many other economies, continues to contend with record-level inflationary pressures. Nonetheless, outlook in the near-term is positive as inflation has peaked,” she stated.
The Chief Director stressed that in spite of the economic crises facing the ECOWAS region, such spiralling inflation, growing public debt and political instability, the region must “Urgently and deliberately pursue the economic integration of our sub-region and rake in the extensive benefits for our peoples”.
Abidjan-Lagos highway: ECOWAS moves to perfect design for project (Vanguard)
The Economic Community of West African States, ECOWAS has said it is set to perfect the design for Abidjan-Lagos Highway Development Project for implementation. The Commission disclosed this in Lagos yesterday, at the opening ceremony of the ongoing three-day workshop it organised to meet the relevant stakeholders for the necessary validation.
Head of Roads and Railyway at ECOWAS Commission, Mr Ashoke Maliki, said: “Today’s event is important because member states comprising of Nigeria, Benin Republic, Togo, Ghana and Cote d’Ivoire are here to look at the report presented by the consultant, validate it based on their experiences along the corridor and approve such report for investment.”
“By the end of this year, we would have been done with the design which includes Environmental Assessment ESIA, engineering design, project scoping and tender document,” he said.
Harnessing E-commerce for Sustainable Development in ECOWAS (ECOWAS)
The Economic Community of West African States adopts E-commerce Strategy to support Member States in leveraging e-commerce to build resilient micro-small and medium sized enterprises, create new jobs and spur economic diversification.
The 90th Session of the Economic Community of West African States (ECOWAS) Council of Ministers endorsed the ECOWAS E-commerce Strategy at its last meeting held from the 6 – 7 July 2023. This step follows its adoption by ECOWAS Ministers of Trade and Industry (ECOMOTI) at the 3rd Ministerial meeting which held from the 27th – 28th April, in Abidjan Cote d’Ivoire.
The ECOWAS Commission developed the E-commerce Strategy (ECS) with the support of the United Nations Conference of Trade and Development (UNCTAD) with the objective to strengthen the efforts of ECOWAS Member States on the use of technology to accelerate structural change and development, foster regional integration, including through economic diversification, job creation and more inclusive trade activities.
With the vision for a “sustainable, inclusive, and secure e-commerce ecosystem supportive of ECOWAS’ efforts to use technology to accelerate structural change and foster regional integration through economic diversification and job creation.” The Strategy aims to strengthen ministries of trade to support domestic and cross-border e-commerce development, secure trust along the e-commerce supply chain from producers to consumers, improve access to e-commerce statistics and market information in ECOWAS, and foster inclusion for e-commerce development in ECOWAS.
New Country Policy and Institutional Assessment Report for Africa Points to Areas of Improvement Amid Challenges (World Bank)
Despite new international challenges, poor harvests, and the price shocks of 2022, many countries in Sub-Saharan Africa saw improvements in their social inclusion policies and their structural policies—both of which are reflected in the latest Country Policy and Institutional Assessment (CPIA) scores for 39 countries in the region.
Countries are rated on a scale of 1 (low) to 6 (high) across 16 dimensions reflecting four areas: economic management, structural policies, policies for social inclusion and equity, and public sector management and institutions. The average overall CPIA scores in SSA remained stable at 3.1. While many countries made improvements in “policies for social inclusion” and “structural policies”, these improvements were offset however by stagnation in “economic management” and “public sector management and institutions.”
“At a time of high global interest rates and weak economic growth, it is encouraging to see progress in policy reform, especially around private-sector reforms and protecting vulnerable people from economic fluctuations,” said Nicholas Woolley, economist with the World Bank Office of the Chief Economist for Africa.
In 2022, the gap between sub-regions grew, as Western and Central Africa (AFW) continued its upward trend, improving scores slightly from 3.2 to 3.3, while Eastern and Southern Africa (AFE) remained unchanged at 3.0. However, this gap can largely be attributed to the performance of fragile and conflict-affected states (FCS). In 2022, the four lowest-scoring countries (South Sudan, Eritrea, Somalia, and Sudan) were located in AFE and were experiencing conflict and fragility. Without these four states, the score between sub-regions is almost identical.
Korea & Africa Seek Funding & Tech for Energy and Africa’s Agricultural Rise (Ecofin Agency)
The 7th Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference opened in Korea’s second-largest city, Busan, on Wednesday with a strong call for additional resources to help African countries achieve universal access to energy and transform the continent into the breadbasket of the world.
The conference is taking place at a time when Africa is facing a plethora of challenges. This is why Korea and African nations, under the aegis of KOAFEC, have agreed to deepen their cooperation with much more emphasis on mutually beneficial investment.
The African Development Bank Group and the Ministry of Economy and Finance of the Republic of Korea are co-hosting the three-day conference under the theme “Embracing a Sustainable Future: Just Energy Transition and Agricultural Transformation in Africa.” This embraces these two critical development priorities for Africa.
In his opening remarks, African Development Bank Group President Akinwumi Adesina urged delegates to seize the conference as a critical opportunity to galvanise support for several objectives: achieving universal energy access in Africa, advancing a just energy transition and transforming the African continent into the breadbasket of the world.
“Doing so will require additional resources,” Adesina said. The African Development Bank chief urged Korea to join other countries that have expressed strong interest in reallocating SDRs to the African Development Bank Group. “This will be a game changer for Africa’s development,” Adesina declared.
Choo summarised Korea’s priority areas for support to Africa as “ABC”—agriculture, bio-health, and climate change, as well as energy transition. He said Korea also planned to significantly increase its official development assistance.
WTO predicts 29% export increase expected by 2035 via regional trade integration (Nairametrics)
The World Trade Organisation, WTO, revealed that Increasing regional trade integration could promote both overall economic performance and integration into the global market beyond commodities trade by 29 % in 2035.The WTO disclosed this in its World Trade Report 2023, viewed by Nairametrics on Tuesday, titled “Re-globalization for a secure, inclusive and sustainable future”
The report revealed that for Africa, increasing regional trade integration could promote both overall economic performance and integration into the global market beyond commodities trade.
“For example, the full implementation of the African Continental Free Trade Area (AfCFTA) could lead to an additional 29% increase in total exports by 2035. Intra-African exports could surge by 81%, while exports to the rest of the world would also rise by 19%.
“The manufacturing sector would particularly benefit from a reduction in tariff and non-tariff barriers, with a projected 62% increase in exports. “As trade in manufactured goods allows for greater diversification than commodities trade, this would help African economies to further integrate into GVCs. Export diversification could also be greater in similarly endowed economies engaging in trade.”
WHO, WIPO, WTO renew commitment to support integrated solutions to global health challenges (WTO)
At their third meeting since the onset of the COVID-19 pandemic, the Directors-General of WHO, WIPO and the WTO agreed to shift the focus of trilateral cooperation from the response to the COVID-19 pandemic to increasing and broadening support for more effective and sustainable use of flexibilities in the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) to increase access to health technologies and to be better prepared for future pandemics.
While acknowledging the critical role of intellectual property (IP) to incentivize innovation, WHO Director-General Dr Tedros Adhanom Ghebreyesus, WIPO Director-General Daren Tang and WTO Director-General Dr Ngozi Okonjo-Iweala recognized the challenges faced by members to fully implement at domestic level the wide range of available options to secure timely and equitable access to health technologies.
This included the TRIPS COVID-19 Vaccines Decision adopted at the WTO’s 12th Ministerial Conference in June 2022 as well as flexibilities generally available under the TRIPS Agreement. They agreed that trilateral cooperation should address these challenges by intensifying activities to provide tailored support and information to members, including through joint technical seminars for delegates handling health, trade and IP issues.
Climate Finance Report Launched: Developed countries fail to meet climate finance targets for 11th year in a row (The Business Standard)
Wealthier nations, who are historically more responsible for climate change, are failing to meet the international climate funding obligations they agreed to in Copenhagen in 2009, stated the recently published new report on “Fair Share” by ODI and Zurich Flood Resilience Alliance. A target of providing $100 billion a year in climate finance – agreed by developed nations– has now been missed for the 11th year in a row.
The report is being released following the G20 leaders’ summit in Delhi, held over the weekend, where the G20 countries once again said that they will meet the $100bn goal in 2023. However, only eight developed countries out of 23 currently pay their fair share of climate finance, with the USA, Spain, and Australia continuing to fall hugely short.
ODI report shows, that despite needs amounting to an estimated $4 trillion by 2030 to keep to a 1.5 degree C trajectory, the $100 billion target has been missed every year to date. In 2020, the target should have been reached, provision and mobilization amounted to $ 83.3 billion. Cumulatively over 2011–2020, the climate finance gap totals $409.8 billion. The report mentioned that the failure to meet the climate finance goal can be attributed to developed countries collectively, and this failure has far-reaching consequences.
Beyond merely achieving their ‘fair share’ of the $100 billion target, developing countries must contend with the fact that historically, adaptation funding has been vastly overshadowed by mitigation support. In fact, the underfunding of adaptation is so pronounced that provider countries were implored to double their flows of adaptation finance during the 2021 Glasgow COP. This underscores the pressing need for a more equitable and comprehensive approach to climate finance, one that aligns with the actual needs and priorities of those most vulnerable to the impacts of climate change.
Civil society criticizes African Climate Summit for promoting false solutions, not fossil fuel phaseout (Oil Change International)
Last week, some 30,000 delegates and 25 African heads of state, as well as the European Commission President, UN Secretary-General, and US Special Envoy on Climate, gathered in Nairobi for the inaugural Africa Climate Summit. The event was seen as an opportunity for African countries to agree on a unified position ahead of the upcoming COP28 conference later this year.
The Summit and wider African Climate Week was held from the 4th to the 8th of September. Alongside the summit, some 500 African Civil Society Organisations from across the continent came together for a concurrent Real Africa Climate Summit to put forward community solutions for real climate action.
The language during the summit was bold. Kenyan President William Samoei Ruto said, “Climate action is not a Global North issue or a Global South issue. It is our collective challenge, and it affects all of us. We need to come together to find common, global solutions.”
The response by many activists was highly critical. The People’s Assembly declared that the African Climate Summit “ought to have been the opportunity to put forward a real and progressive stance on African climate action and integrated development in a way that centers African solutions and strategies and breaks from the business as usual of Africa being a pawn in the plans of others.”
The alternative People’s Declaration noted that “Real solutions to climate change cannot be designed in boardrooms and ivory towers – they must come from genuine consultation with people and communities and must put people-centered (not profit-centered) goals at their core.”
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‘The world is not waiting for us’ on digital technology – Minister Gungubele (News24)
South Africa will become an irrelevant trading partner if the country does not keep up with the pace of global technological development says Communications and Digital Technology Minister Mondli Gungubele. “Digital transformation is moving fast globally. It is not informed by our spirit, it is informed by the speed of the world,” he said in Durban on Tuesday. “The world is not waiting for us ladies and gentlemen, from both connectivity and broadband, and real connectivity.”
Gungubele said digital intervention was a tool to reduce unemployment in South Africa, adding that more investment in technology was required. The R3 billion that was allocated to South Africa Connect over the 2023/24 and 2024/25 financial years was not enough, the minister said. SA Connect is the country’s broadband policy and strategy that aims to create a “universally accessible” communication system.
Kenya institutes reforms to shore up tax revenue to 25 pct of GDP (The Star)
The Kenyan government on Tuesday announced a strategy of tax reforms that it seeks to use to shore up revenue in the financial years 2024/2025 and 2026/2027 and over the medium term. Njuguna Ndung’u, the cabinet secretary for the National Treasury, said the government will use the reforms to raise revenue to up to 25 percent of the gross domestic product (GDP).
“Kenya’s revenue yield is still below the desired East African Community (EAC) target of 25 percent of the GDP. This strategy outlines reforms of the tax system aimed at reversing the trajectory of the tax to GDP ratio and achieving the ratio of 25 percent by 2030,” Ndung’u said of the document, dubbed Medium Term Revenue Strategy, released in Nairobi, the capital of Kenya.
Downloads:
Public Notice: The Medium-Term Revenue Strategy (MTRS) - 11 September 2023
The Medium-Term Revenue Strategy: An approach for enhancing domestic revenue, FY 2024/25 - 2026/27
He said the reforms that will be implemented during the strategy period are aimed at promoting investments across various sectors by removing market distortions. The official added that the tax reforms would enable Kenya to achieve the desired revenue growth that will reduce the fiscal deficit over the medium term to the EAC regional target of 3 percent of GDP.
Recovery of global economy boosts Nigeria’s exports (Ventures Africa)
Nigeria’s trade sector has shown remarkable resilience and dynamism in the second quarter of 2023, despite economic challenges. Nigeria’s exports and imports in the second quarter of 2023 reveal some interesting trends and patterns in the country’s trade performance.
According to a report from the National Bureau of Statistics, Nigeria’s total exports increased by 8.15 per cent in the second quarter of 2023 compared to the first quarter, reaching N7.015 trillion. It is also an improvement from the 5.2 per cent decline in exports in the second quarter of 2022. This indicates a positive growth in the country’s export earnings, which could boost its foreign exchange reserves and balance of payments.
The main export products were petroleum oils and natural gas, accounting for 79.63 per cent and 9.11 per cent of the total exports respectively. Nigeria’s oil exports rose by 13 per cent in the second quarter of 2023 compared to the first quarter, driven by higher crude oil prices and increased production quota from OPEC. This shows that Nigeria’s economy is still heavily dependent on its oil and gas sector, which is vulnerable to fluctuations in global prices and demand. Despite the continuous increase in oil exports, this was not enough to offset the decline in non-oil exports.
The ECOWAS Commission Accelerates AfCFTA’s Implementation in the ECOWAS Region (ECOWAS)
The 90th Session of the Economic Community of West African States (ECOWAS) Council of Ministers endorsed the ECOWAS Implementation Strategy for the African Continental Free Trade Area Agreement on the 6 and 7 July 2023, in Bissau, Guinea-Bissau.
The ECOWAS Implementation Strategy for the AfCFTA is timely, as it responds to the African Unions 2023 ambition geared towards the “Acceleration of AfCFTA’s Implementation” which came into operation on 1 January 2021, marking the commencement of trade in a single African market of 54 countries, including 13 ECOWAS Member States.
The strategy is geared towards improving the effectiveness of the region’s trade integration framework, increasing coordination between Member States on their national AfCFTA implementation strategies, strengthening the productive capacity of Member States, building the capacity of Member States to engage in strategic African trade policy and ensuring the AfCFTA is a positive tool for women’s and youth economic empowerment.
The 10th COMESA Annual Research Forum kicks-off (COMESA)
The 10th edition of the COMESA Annual Research Forum began on Monday as part of capacity building initiatives in economic and trade policy research and analysis to strengthen integration and trade in COMESA region and the African continent. A total of eight research papers which has been prepared by researchers from across the African region will be presented at the two-day forum themed: “30 Years of COMESA Regional Integration: Retrospect and Prospects”.
Speaking at the opening of the forum, Secretary General of COMESA, Chileshe Kapwepwe stated that it is important to take stock of its regional integration journey, its achievements, its challenges, and the prospects for promotion of further regional economic integration as an instrument for sustainable economic growth and development. She cited the growth of intra-COMESA exports from US$1.5 billion in 2000 to US$12.8 billion in 2021 as part of the significant achievements under the free trade area regime.
“Despite this growth, intra-COMESA exports remain low at about nine percent of its total exports. Recent studies indicate that inter-COMESA export potential is in excess of US$100 billion,” she noted. She added that a lot more work, including research was required to unlock the potential and enable Member States to better utilize the preferences embedded in the Free Trade Area regime.
ACCI set to host 18th Abuja international trade fair (Voice of Nigeria)
The Abuja Chamber of Commerce and Industry, ACCI in Nigeria has announced its upcoming 18th Abuja International Trade Fair (AITF) scheduled for 29th September to 9th October 2023 in Abuja the nation’s capital.
The president of the chamber, Dr Al-Mujtaba Abubakar who made the announcement during a press briefing in Abuja said the Fair with the theme “Sustainable Financing and Taxation as Drivers for the New Economy,” would serve as a platform for businesses to engage with financial and tax institutions, discuss current trends and solutions, and foster sustainable approaches to the African Continental Free Trade Area (AfCFTA).
According to him, “This year’s theme is centered on financing and taxation which is the cornerstone of any prosperous nation and immense importance to the business community as it is critical to addressing climate-friendly initiatives, the ease of doing business, and attracting foreign direct investment.”
Driving Africa’s Industrialisation: Special Economic Zones And Transport’s Vital Role In Advancing AfCFTA Agenda (Africa.com)
Special Economic Zones (SEZs) can accelerate Africa’s industrialisation and increase economic growth. Through using designated SEZs and collaborations like the African Continental Free Trade Agreement (AfCFTA), there are opportunities to boost trade, investment, infrastructure, employment, and entrepreneurship, and to remove barriers to doing business. Transport has a vital role to play.
The continent requires a unique approach to see progress in industrialisation, including harmonising trade policies and facilitating the free movement of goods and services as the AfCFTA envisions.
With a prosperous future in mind, the 11th Transport Evolution Africa Forum & Expo takes place from 20-22 September at the Inkosi Albert Luthuli ICC Complex in Durban. The event serves as the exclusive platform for global, public and private participants to engage in advancing and upholding Africa’s port, rail, and road infrastructure. These need to function to see Africa thrive.
“The industry will gather to deliberate trends, obstacles, and opportunities across the continent,” says Le-Ann Hare, Portfolio Director at dmg events. “In collaboration with AfCFTA, the event aligns with encouraging partnerships and a borderless Africa. Sustainable and reliable transport is key to the future of the continent overall.”
Transport is one of five priority services under the AfCFTA.
Trade synergy to take centre stage at Africa-Korea summit today (Daily Trust)
As African countries round up preparations for the takeoff of the African Continental Free Trade Area (AfCFTA), key players are set to discuss how the continent will maximise benefits from trade at the forthcoming Africa-Korea business summit in Paris, France.
The summit, with the theme ‘Africa-Korean Partnership in an Era of Great Transformation’, is set to explore how Korean players can enable and synergize with deeper trade integration in Africa and build a complementary partnership for the 21st century through technological leadership across sectors including agriculture, mining and renewable energy to manufacturing and digitization.
“The Africa Continental Free Trade Area (AfCFTA) reached major ratification milestones in 2023 on the back of unprecedented political momentum for closer regional integration to see the emergence of Africa as a global growth hub representing a quarter of the world’s population and a $16.5tn dollar market by 2050.
World Trade Report 2023 makes case for “re-globalization” amid early signs of fragmentation (WTO)
The 2023 edition of the WTO’s World Trade Report presents new evidence of the benefits of broader, more inclusive economic integration as early indications of trade fragmentation threaten to unwind growth and development. The flagship publication features findings on how re-globalization — or increased international cooperation and broader integration — can support resilience, inclusiveness, and environmental sustainability.
“The WTO is not perfect — far from it. But the case for strengthening the trading system is far stronger than the case for walking away from it,” DG Okonjo-Iweala says. In introducing the report at the opening of the WTO’s annual Public Forum on 12 September, WTO Chief Economist Ralph Ossa said: “The main conclusion is that we need to embrace trade instead of rejecting it if we want to overcome the most pressing challenges of our time.”
“In particular, the report makes the case for extending trade integration to more economies, people, and issues, which is a process that we call “re-globalization”,” Mr Ossa added. Trade integration “is a powerful tool to improve living standards, which helped lift hundreds of millions of people out of poverty.”
Former UK PM Gordon Brown calls for new era of international cooperation, multilateralism (WTO)
The world needs to enter a new era of international cooperation and renewed multilateralism, former British Prime Minister Gordon Brown told a large audience on 12 September, delivering the Presidential Lecture at the WTO Public Forum. “I want to suggest now is the time for reconstruction, for a new era, even if it may seem at first sight we are striving against the odds,” said Mr Brown, highlighting the need to forge a “new multilateralism”, particularly at a time when international cooperation is facing considerable resistance from various quarters.
AFEX calls for ease of trade to foster Food Security in Africa at AGRF 2023 (Farmers Review Africa)
AFEX, Nigeria’s leading commodities player, has highlighted the need for streamlined trade, harmonised standards, and improved infrastructure in African agriculture to foster food security across the continent. AFEX took this position during a high-profile “The Real Cost of Food Security” session at the African Food System Forum (AGRF) 2023. The event, co-hosted by the Alliance for a Green Revolution in Africa (AGRA) and the government of Tanzania, unfolded from October 4th to 8th, bringing together global agriculture stakeholders for insightful panel discussions and presentations.
Presently, intra-African trade stands at just 14.4% of total African exports. The United Nations Conference on Trade and Development (UNCTAD) forecasts show the African Continental Free Trade Area (AfCFTA) could boost intra-African trade by about 33% and cut the continent’s trade deficit by 51%.
Speaking at the session, President of Rest of Africa at AFEX, Sanne Steemers, said, “Currently, Africa lacks essential infrastructure for inter-continental trade, which is hindering the achievement of robust food security across the continent. By implementing a more efficient agreement with African communities, we can promote sub-regional production networks and encourage cooperation initiatives, while promoting good agricultural practices throughout the continent.”
Related: Transforming Africa’s Food Systems: The AASR23 Report (Taarifa Rwanda)
Window to reach climate goals ‘rapidly closing’, UN report warns (UN News)
Simon Stiell, Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC) which issued the report, called for “greater ambition and accelerating action”. “I urge governments to carefully study the findings of the report and ultimately understand what it means for them and the ambitious action they must take next. It is the same for businesses, communities and other key stakeholders.”
The report summarizes 17 key findings from technical deliberations in 2022 and 2023 on the implementation status of the Paris Agreement on climate change and its long-term goals, based on the best scientific information. The report comes ahead of the “global stocktake” at the upcoming UN climate change conference COP28, which will be held in Dubai, United Arab Emirates, in November-December.
Quick links
Why Africa needs trade integration – Awani
SADC central bank governors caucus on sustainability in financial systems amid climate change
Ghana, West Africa food security concerns rise on Niger sanctions
A New Financing Pact for Climate-Vulnerable Countries
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SA losing $62bn a year due to illicit financial flows (Moneyweb)
South Africa is losing more than $62 billion a year because of illicit financial flows (IFFs), which could be used to fund the building of schools, hospitals and safer roads. This was highlighted at a conference on increased illegal trading in automotive components, at the Automechanika event in Johannesburg.
Tyre Import Association of South Africa (Tiasa) chairperson and MD of Treadzone Charl de Villiers said a pilot study by the United Nations Convention on Trade and Development (Unctad) focused on measuring tax and commercial IFFs, revealed that South Africa is losing out on $21.9 billion per year in inward flows and $40.9 billion in outward flows.
These inward flows are being lost because of misdeclarations (either on purpose or by mistake), undervaluation of invoices, tax evasion, round tripping and many other things, De Villiers told a conference hosted by the Tyre, Equipment, Parts Association (Tepa) at Automechanika last week.
“There is a gap in the port operations particularly on those two [issues on misdeclarations and audit/reviews of containers]. We have reported these items but we never see any traction. That means we are losing income from a country perspective, and we are also losing competitiveness together as local manufacturers and importers that are doing the right thing,” he added.
New report says localisation policy locking South Africa into ‘wrong path’ (Engineering News)
A new Centre for Development and Enterprise (CDE) report argues that the South African government’s policy of localisation is locking the country “into the wrong path” of rising protection and rising inefficiency. The report comes as the Department of Trade, Industry and Competition (dtic) continues to prioritise localisation as a central pillar in South Africa’s industrial policy and amid growing concern over what some are describing as the country’s premature de-industrialisation.
Government has responded with a series of initiatives, including a 2021 approach to the social partners represented in the National Economic Development and Labour Council with a call for a 20% reduction in nonfuel imports over a five-year period. In addition, the dtic has for some time been working across various sectors, from steel and automotive to renewable energy and clothing, to develop masterplans to identify opportunities for local industrial development.
Nevertheless, CDE executive director Ann Bernstein argues that, instead of compelling the local manufacture of products, government should be working to shape a business environment that attracts and rewards investment shaped by strong competitive pressures and which is more often export-oriented.
More on South Africa:
South African citrus producers struggled to meet demand in Europe this season (Engineering News)
Agriculture was the fastest growing sector of the SA economy in the second quarter (Engineering News)
Auto sector should consider increased import substitution (Engineering News)
Kenya’s investment allure dips further in EAC region (People Daily)
Kenya has been ranked as the second most difficult country for businesses after South Sudan, according to the Ease of Doing Business in the East Africa Community (EAC) report by the East African Business Council, highlighting concerns about the nation’s business. The report shows that Kenya received a moderately low index score of 3.43, placing it at the sixth position out of the seven partner states surveyed. South Sudan, with a slightly higher index score of 3.5, was ranked seventh.
The report, which surveyed a total of 252 select companies in EAC between June 13 and July 21, 2023, places Rwanda as the best in terms of ease of doing business in the region, with a score of 2.08. It was followed by the Democratic Republic of Congo (DRC) with a score of 2.75.
This means Kenya, the region’s biggest economy, has slipped from the top two positions it held back in 2019 to the bloc’s new member, DRC, which joined in March 2022 and has since become an attractive destination for most companies, including Kenyan banks.
“Based on the analysis of the responses, companies from Trade in Goods and Trade in Service ranked the ease of doing business within their countries, notably Rwanda as Easy (Rank 2.08), DRC as Moderate (Rank 2.75), Uganda as Moderate (Rank 3.05), Burundi as Moderate (Rank 3.18), Tanzania as Moderate (Rank 3.32), and Kenya as Moderate (Rank 3.43),” reads the report in part.
More on Kenya:
Courier service provider says operations in the country unsmooth (The Star)
Kenya exports its first 52-tonne of ‘omena’ to China (The Star)
Ports collapsing, we must rehabilitate them — Minister (Vanguard)
The Minister of the newly created Marine and Blue Economy, Adegboyega Oyetola, has said the Lagos seaports are in dilapidation and called for urgent rehabilitation of the facilities.
Speaking in Lagos while on a tour of the Lagos Ports, Oyetola said that government will engage the terminal operators to see how the rehabilitation of the ports can be funded. The Minister also said that he will engage the Minister of Works on rehabilitating the port access roads which are also dilapidated.
“The infrastructure is almost collapsing from what I have seen... However, I am impressed with the management of the NPA (Nigerian Ports Authority) but we need to support them. I am looking forward to a situation where the terminal managers will be willing to contribute to the rehabilitation of the ports. So it is going to be a collaboration between the government and the terminal operators.
Tough conditions, lack of finances hurting EAC’s small traders- lobby (The Star)
Lack of access to information on trade regulations, violence and harassment and lack of access to finance are hurting women and youth-led businesses in East African Community’s cross-border trade. This is according to the East African Women in Business Platform (EAWiBP).
Women cross-border traders also often face discrimination at the borders where they have high chances of being harassed by border officials, especially when they travel alone, with cases where they are charged higher fees than men. Among the biggest impediments however is lack of information they need to navigate the complex trade rules and regulations despite the existence of a Simplified Trade Regime (STR) on customs procedures and documentation, leading to delays and penalties.
According to TradeMark, the majority of the traders are unaware of Simplified Trade Regime (STR) on customs procedures and documentation, hence avoiding formal border posts leading to a higher cost of business.
DRC makes slow steps in integrating with EAC states (The East African)
On the margins of the Partnership for Global Infrastructure and Investment (PGII) event at the G20 in India, the United States of America and the European Union welcomed the recent commitment by Angola, Zambia and the Democratic Republic of the Congo to develop the Lobito Corridor connecting southern Democratic Republic of the Congo and northwestern Zambia to regional and global trade markets via the Port of Lobito in Angola.
To accelerate this work in partnership with the three African countries, the European Union and the United States are teaming up to support the development of the Corridor, including by launching feasibility studies for a new greenfield rail line expansion between Zambia and Angola. This represents a powerful evolution of the Partnership element of the Partnership for Global Infrastructure and Investment with a collaborative approach that could be replicated in other strategic corridors around the world.
The U.S.-EU partnership will upgrade critical infrastructure across sub-Saharan Africa to unlock the enormous potential of this region. We are excited to join forces to generate economic benefits with our partners in Angola, the Democratic Republic of the Congo and Zambia.
Afreximbank Earmarks $41bn To Finance Local Vehicle Manufacturers, Support Intra-African Trade (The Whistler Newspaper)
The African Export-Import Bank (Afreximbank) has earmarked $1bn to fund local vehicle manufacturers in the continent. The bank has also doubled its financing for intra-African trade from $20bn to $40bn, the Executive Vice President of intra-African Trade, Afreximbank, Kanayo Awani said.
Awani made the disclosure on Monday at IATF 2023 Business Road Show in Lagos with the theme, ‘Positioning Nigeria to Harness the Opportunities at the African Continental Free Trade Area,’ monitored by THE WHISTLER. The road show aims at creating awareness for Nigerian businesses ahead of the IATF – Intra-African Trade Fair 2023 in Cairo, Egypt between November 9-15, 2023.
The IATF is one of the tools adopted by Afreximbank to bridge issues like information asymmetry among companies in the continent. Businesses in the continent remain unaware of the opportunities that exists in each country but more aware of opportunities available in other continents, she said.
She said, “If I were to ask a Ghanian footware manufacturer to source leather, he is most likely to look to New Zealand and South America for supply yet, countries like Nigeria, Ethiopia, Burundi and Sudan have the supply capacity to meet this demand."
Border checks, varied rules choke intra-Africa trade plan (Nation)
Businesses have flagged lengthy border checks and varied quality standards as the biggest threats to Africa’s dream of a seamless market. Companies in countries participating in the African Union-backed pilot initiative to accelerate trade on the continent said it takes several months to get some of the approvals needed.
The African Continental Free Trade Area (AfCFTA) secretariat launched a year-long Guided Trade Initiative (GTI) in October 2022 aimed at stress-testing operational, institutional, legal and trade policy environment under the envisaged world’s largest single market of about 1.4 billion people. The programme covers trade in tens of products like tea, coffee, tiles, batteries, processed meat, sugar, pasta, glucose, dried fruits and sisal fibre
Traders, however, say bureaucratic red tape at border posts are erecting bigger bumps for the free movement of goods than the weak transport and logistics capacity. Africa’s underdeveloped transport networks have been blamed for the rising cost of goods and services by as much as 40 per cent, rendering trade within the continent uncompetitive compared with Europe and other regions.
Digital solutions for safer African roads (The Independent Uganda)
Lusaka, Zambia set to host the Largest Fintech Event in Africa Happens this November. (TechCabal)
Can AI address Africa’s agricultural trade deficit? (African Business)
African leaders bank on carbon taxes to raise climate finance (The East African)
African leaders are eyeing a new “sin” tax on global emitters as a way of raising money from those who pollute the environment. The Nairobi Declaration – the culmination of the three-day Africa Climate Summit held this week in Kenya – called on the global community to support Africa’s push for carbon taxation to “provide affordable and accessible finance for climate positive investments at scale.”
The leaders also demanded that other world leaders implement “a mix of measures that elevate Africa’s share of carbon markets” in similar efforts to improve the bloc’s access to climate finance. Kenyan President William Ruto said both carbon taxes and carbon credits have the potential of providing the continent with the resources they need for climate change mitigation but are still underdeveloped and untapped.
“To be able to unlock the resources that we need to be able to drive these new investment and financing opportunities, especially for green energy, we believe it is time to have a conversation about carbon tax,” President Ruto said.
Africa’s vast mineral resources remain untapped (The Standard)
Africa, the world’s richest region for renewable energy potential has a vast untapped resource to drive sustainable development and industrialization. The Africa Climate Summit 2023 served as a platform for fruitful discussions on the Africa Green Minerals Strategy (AGMS) and its potential to reshape the continent’s economic landscape.
With the urgent need to industrialise and enhance economy-wide productivity, reliable energy is paramount, especially for priorities like food and water security. To meet these demands, Africa must diversify its energy sources, with a growing focus on renewable energy alongside fossil fuels, particularly natural gas.
Speaking at a side event during the summit, Paul Jourdan, emphasized AGMS’s alignment with key frameworks such as the Africa Mining Vision (AU 2009), the Africa Commodity Strategy (AU 2021), and the African Continental Free Trade Area (AfCFTA). He highlighted the importance of “green” minerals, including aluminium, chromium, cobalt, copper, graphite, iron–steel, lithium, manganese, nickel, Platinum Group Metals (PGMs), rare earth elements (REEs), vanadium, and zinc, which are central to AGMS.
Africa Food Systems Summit 2023: African Development Bank leads charge for better food systems (AfDB)
The 2023 Africa Food Systems Summit held recently in Dar es Salam has called on African leaders to build better food systems and promote food sovereignty, with youth and women at the centre. On the sidelines of Africa’s annual agriculture summit, the African Development Bank Group hosted a food sovereignty and resilience event. This follows the Dakar 2 Food Summit held in Dakar, Senegal early this year.
Dr. Martin Fregene, the African Development Bank’s Director of Agriculture and Agro-Industrialisation, said: “The 2023 Africa Food Systems Forum is a defining moment for highlighting and unlocking innovation. It allows us to take stock of the political, policy and financial commitments African countries have made to achieve productive, nutritious, inclusive, resilient, and sustainable food systems in the continent.”
AU ropes debt management into Agenda 2063 (The East African)
The African Union is pitching what it touts as a local solution to survive mounting debt for members. And the proposals could be tabled to member states as soon as the next summit, signaling the latest concerns about the potential of debt to drain economic targets. The revelations emerged last week at a conference on debt in Dakar, Senegal where officials explained the policy direction.
“As the AUC, we are setting up the African Debt Mechanism that will be adopted next year which will be a platform that will allow us to have information on debt and also to plan on how countries will engage in debt negotiations before getting the loans,” said Dr Olomo at the ‘African Conference on Debt and Development’, an annual forum.
While the decision to establish some form of debt observatory was announced earlier this year, African Union members are expected to adopt it from January 2024 to be in line with AU’s Agenda 2063. “It will also guide African countries on how they are going to engage in discussions when it comes to debt treatment. The AUC is playing that economic role of bringing together African countries to address issues related to debt,” said Dr Patrick Dzana Olomo, the Policy Officer for Investment and Resource Mobilisation, Economic Affairs Department of the African Union Commission.
ECOWAS Unity Put to Test as West African Coup Crisis Deepens (VOA)
A series of coups in Western Africa is putting the unity and capability of the Economic Community of West African States, ECOWAS, to the test as it seeks to restore civilian rule in countries such as Burkina Faso, Guinea, Mali and Niger. These four nations have joined forces to resist economic sanctions and potential military action by the other 11 countries within the bloc.
On July 26, the military junta in Niger placed President Mohamed Bazoum under house arrest, accusing his administration of mismanaging the country’s resources and allowing the security situation to deteriorate. In response, ECOWAS imposed trade sanctions on Niger and even threatened military intervention.
But the ongoing political and security crises in Niger, as well as in Burkina Faso, Guinea and Mali, are proving to be challenging for the other ECOWAS member countries.
DDG Ellard: International trade and WTO indispensable to resolving global crises (WTO)
Deputy Director-General Angela Ellard discussed the important role of international trade in addressing global crises at the Vilnius Conference in Lithuania on 8 September. She also stressed the need to reform the WTO to ensure it continues to be fit for purpose and underlined the importance of achieving outcomes at the WTO’s 13th Ministerial Conference to take place in Abu Dhabi next February.
“Our economists estimate that if the world were to decouple, real GDP loss would be at least 5% on average, and more for developing and least developed countries. And the opportunity cost of decoupling as opposed to further economic liberalization is 8.7% of real income at the global level. By contrast, reinvesting in multilateral trade liberalization can create significant income gains compared to fragmented trade scenarios. Deconcentrated and more diversified global chains, and those that include countries and communities that are now at the margins of the global economy, are key to better resilience, especially in times of crisis. In short, the world needs to re-globalize instead of de-globalizing.
At the WTO, we have a vision for such re-globalization: it will be green, digital, services-based, and inclusive. Last year, global trade in services grew by 15 per cent and reached $6.8 trillion, or just over one-fifth of total world trade in both goods and services. We estimate that the share of services in world trade grow further to reach one-third by 2040.”
G20 Summit
G20’s New Delhi Declaration is a successful balancing act (Peoples Dispatch)
The 18th Summit of G20 (Group of 20) concluded in New Delhi with the adoption of a joint declaration on Sunday, September 10. The declaration reiterated the G20’s commitment to UN Sustainable Development Goals and raised the need to reform global decision-making with the inclusion of more voices from the Global South.
pdf G20 New Delhi Leaders’ Declaration - 10 September 2023 (1.41 MB)
Host nation India was able to pull together all the participants to agree to the New Delhi declaration, despite earlier speculation that the war in Ukraine may play a spoiler. Russian foreign minister, Sergey Lavrov, who attended the summit instead of president Vladimir Putin, praised New Delhi for preventing the West from pushing its agenda and “politicizing” the forum at the cost of the Global South on many issues including the war in Ukraine. The declaration omitted the use of the word aggression in the context of the Ukraine war, which had been a major point of contention.
The declaration reiterated that the G20 is the “premium forum for international economic cooperation” and not “the platform to resolve geopolitical and security issues” while acknowledging the impact of these issues on the economy. The attempt by the West to use the G20 platform to push its agenda on geopolitical issues has often been criticized by some members of the G20.
Noting that “no country should have to choose between fighting poverty and fighting for our planet” the declaration pressed for greater cooperation to tackle the issues related to climate change and to ensure “sustainable, inclusive and just transitions” in the world. The declaration underlined the need to have increased efforts and financing to achieve the Paris Agreement to tackle the rise in global temperature and other climate issues. The G20 agreed to take steps to limit the rise of temperature to 1.5 degree Celsius by 2030 but rejected any push to have a time-bound phasing of fossil fuels as demanded by some countries and the UN earlier.
India’s G20 Presidency opens up trade opportunities to African Union as a permanent member (The Sunday Guardian Live)
India’s G20 Presidency on Saturday witnessed a transformative change with the induction of the African Union as a permanent member of the grouping, a move which will strengthen the G20 and also strengthen the voice of the Global South, of which India has been a staunch advocate. “The African Union has been made a permanent member of the Group of 20 countries,” Prime Minister Narendra Modi said on Saturday in opening remarks at the 18th G20 Leaders’ Summit, as he invited the AU, represented by Chairperson Azali Assouman, to take a seat at the table of G20 leaders as a permanent member.
Bringing in the African Union—a bloc of 55 countries from the African continent that was launched in 2002—as a member of G20, has been a key India objective to fructify during the ongoing G20 summit. In June 2023, Modi said that he had written to G20 counterparts to provide the African Union with full membership at this G20 Summit.
The two partners are opportunely placed with India committed to deepening trade and investments with Africa and increasing knowledge and technology transfer with the region. The India-Africa trade volume that stood at nearly USD 100 billion in 2022-23, has the capacity to go beyond doubling the trade volume to USD 200 billion by 2030, considering that both regions together have 3 billion population with very favourable demographics.
The induction of AU in the G20 comes amidst implementation of the Africa Continental Free Trade Area (AfCFTA) agreement, which complemented with the strong transportation and logistics networks, will help boost bilateral trade flows between the two sides.
Markus Engels, Secretary General of the Global Solutions Initiative stated: “As the focus of the G20 shifts to the Global South, we need to ensure that southern voices, perspectives and issues are right at the top of the global agenda – especially for problems like climate change that disproportionately affect nations from the Global South. Both regions need to work together if we want to have an impact.” Furthermore, with India, Brazil and South Africa at the helm of the G20 from 2023 to 2025, it will also be crucial to build bridges between the G7 and G20, Engels adds.
G20 leaders add African Union as permanent member at summit divided over Ukraine (PBS NewsHour)
10 benefits for African Union as a member of the G20 (The New Times)
New US-backed India-Middle East trade route to challenge China’s ambitions (CNN)
Russia rejects UN proposal, sticks to demands on Black Sea grain deal (Daily Sabah)
G20 leaders commit to WTO reforms; to have a fully functional dispute settlement system by 2024 (Deccan Herald)
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Africa Climate Summit 2023 – Nairobi: Resource page
Background
Climate change and global warming pose significant risks to the global community. Its effects are felt in the physical environment in the form of increasing droughts, floods, wildfires, desertification and rising greenhouse gas emissions, among other things, but importantly also significant economic losses. The impact of climate change is evident in increasing displacement, mass migration, conflict and instability, environmental degradation, and food crises. Urgent action is required by the global community to curb climate-related risks and improve resilience to its effects. It is for this reason that 'Climate action' is included as Goal 13 of the United Nations' 2030 Sustainable Development Goals (SDGs) agenda
Africa is disproportionally affected by the global rise in temperatures and escalating climate-related risks. Unfortunately, many African governments have shown limited ability to respond to the climate crisis and economic shocks it has caused.
Africa Climate Summit 2023
Driving green growth and climate finance solutions for Africa and the world
The inaugural Africa Climate Summit, championed by H.E. President Ruto of Kenya, took place from 4-6 September 2023 in Nairobi, focused on delivering climate-positive growth and finance solutions for Africa and the world. It sought to address the increasing exposure to climate change and global warming, and its associated costs, both globally and particularly in Africa.
The Summit focused on the following thematic areas:
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Climate action financing
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Green growth agenda for Africa
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Climate action and economic development
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Global capital optimisation
Alongside the official programme, several side events were organised by African and international organisations, including AUDA-NEPAD, UNECA, the African Development Bank, World Resources Institute, WWF, IEA, various UN agencies as well as development partners.
Visit the official website here.
Outcomes
Leaders at the Summit were called upon to make ambitious pledges and commitments, as well as present a framework to guide these actions. The Summit produced an outcome document – the Nairobi Declaration of 6 September 2023.
pdf The African Leaders Nairobi Declaration on Climate Change and Call to Action (272 KB)
Select extracts from the Declaration:
The Leaders made the following commitments:
We commit to:
21. Developing and implementing policies, regulations and incentives aimed at attracting local, regional and global investment in green growth and inclusive economies;
22. Propelling Africa's economic growth and job creation in a manner that not only limits our own emissions but also aids global decarbonization efforts, by leapfrogging traditional industrial development and fostering green production and supply chains on a global scale;
23. Focusing our economic development plans on climate-positive growth, including expansion of just energy transitions and renewable energy generation for industrial activity, climate-aware and restorative agricultural practices, and essential protection and enhancement of nature and biodiversity;
24. Strengthen actions to halt and reverse biodiversity loss, deforestation, desertification, as well to restore degraded lands to achieve land degradation neutrality;
25. Strengthening continental collaboration, which is essential to enabling and advancing green growth, including but not limited to regional and continental grid interconnectivity, and further accelerating the operationalization of the Africa Continental Free Trade Area (AfCFTA) Agreement;
26. Advancing green industrialization across the Continent by prioritizing energy-intense industries to trigger a virtuous cycle of renewable energy deployment and economic activity, with a special emphasis on adding value to Africa's natural endowments;
27. Redoubling our efforts to boost agricultural yields through sustainable agricultural practices, to enhance food security while minimizing negative environmental impacts;
28. Taking the lead in the development of global standards, metrics, and market mechanisms to accurately value and compensate for the protection of nature, biodiversity, socio-economic co-benefits, and the provision of climate services;
29. Finalising and implementing the draft African Union Biodiversity Strategy and Action Plan, with the view to realizing the 2050 vision of living in harmony with nature;
30. Integrate climate, biodiversity and ocean agendas and instruments at national plans and processes to assure their full potential to support sustainable development is realized and support nature-based ocean solutions for climate, livelihoods and sustainability objectives, that support and increase the resilience of local communities, coastal areas and national economies;
31. Supporting smallholder farmers, indigenous peoples, and local communities in the green economic transition given their key role in ecosystems stewardship;
32. Identify, prioritize and mainstream adaptation into development policy-making and planning, including in the context of national plans and Nationally Determined Contributions (NDCs);
33. Building effective partnership between Africa and other regions, to meet the needs for financial, technical and technological support, and knowledge sharing for climate change adaptation;
34. Promoting investments in urban infrastructure including through upgrading informal settlements and slum areas to build climate resilient cities and urban centres.
35. Strengthening early warning systems and climate information services, as well as taking early action to protect lives, livelihoods and assets and inform long-term decision-making related to climate change risks. We emphasise the importance of embracing indigenous knowledge and citizen science in both adaptation strategies and early warning systems;
36. Accelerating implementation of the African Union Climate Change and Resilient Development Strategy and Action Plan (2022-2032)
Reactions from civil society and related organisations
Real Africa Summit 2023
The first African Climate Summit ends with Global North interference, but ignites African grassroots and peoples movements
The first ever African Climate Summit ended with a weak and inadequate declaration and clear that old colonial attitudes from Global North continue to dictate Africa’s climate policy, imposing failed and dangerous carbon markets on the continent, according to the People’s Press Release. The debates around the summit have however also brought some tangible benefits. It has boosted awareness of the climate crisis and exposed the vested interests in play.
A selection of responses to the outcome of the Africa Climate Summit are available here.
The African People’s Climate and Development Declaration 2023
Prior to the Summit, more than 300 organisations from across Africa petitioned President William Ruto of Kenya on the credibility of the Africa Climate Summit and ask him to take charge of the Africa Climate Summit whose agenda has been hijacked by foreign interests.
In a demand letter, the civil society organisations (CSOs) called for a reset of the focus and narrative being advanced by the Africa Climate Summit Secretariat which they argue has been hijacked by Western governments, consultancy companies, Global North think tanks and philanthropy organisations/foundations.
The Declaration outlined what Africa needs to pursue moving forward, it outlines what we as peoples need/commit to strive for, and what we demand our governments to do both domestically and in multilateral spaces such as COP28, IMF-WB meetings etc.
The CSOs recognised that if Africa doesn’t have a plan for our own destiny and future, we will continue be the subject of others’ plans, with continued exploitation, extraction and colonisation.
This People’s Declaration is a living document that seeks to voice aspirations and concerns of a wide diversity of movements and organisations, across all kinds of themes and constituencies. It conveys a subset of the many struggles and themes we are involved with.
Intergenerational Dialogue: Africa Driving Climate Adaptation Solutions
Young People Demand Global Leaders Double Adaptation Finance by 2025 to Secure Africa’s Future
Young people from 135 countries around the world are calling on leaders to urgently scale up adaptation finance and include young people in adaptation decisions and action, according to a press release. The Youth4Adaptation Communiqué presented at the Intergenerational Dialogue: Africa driving climate adaptation solutions & jobs convened by the Global Center on Adaptation (GCA) and the Wangari Maathai Institute (WMI) during the Africa Climate Summit, presents the views of young people from 51 African countries. Their message to decision-makers is clear: Young people are critical partners in adapting our world, a vision that can only become a reality by doubling adaptation finance by 2025.
Speaking during the event, Ban Ki-moon, 8th Secretary General and Chair of the Global Center on Adaptation emphasized the global importance of Africa’s youth climate leadership: “When young people are given negotiating muscle and real influence in the world, they will create a better future for all of us. Young people are forced to bear the brunt of climate change. They should be given the chance to successfully adapt.”
Doubling down through Africa Adaptation Acceleration Program (AAAP) Compacts (GCA)
African Leaders joined top representatives of global and regional institutions during the Africa Climate Summit to guide a resilient transformation for Africa in light of the climate emergency fallout on the region. Leaders highlighted the following key messages in the Leaders Communiqué:
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Accelerating adaptation action at speed and at scale is Africa’s number one climate priority – A climate secure Africa benefits the whole globe
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Doubling down on adaptation means turbo-charging the flagship Africa Adaptation Acceleration Program, unlocking private finance and boosting grant-based funding for adaptation
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AAAP Compacts cement domestic and international commitments towards the delivery of highly strategic and comprehensive adaptation responses country-by-country
Other responses
Africa Climate Summit fails to deliver on African solutions for a clean energy future (Greenpeace)
Civil society reaction to the Declaration of Nairobi:
“The Declaration insists that Africa has a chance to be part of the solution with its renewable energy potential. African civil society has known this and has been demanding a 100% renewable future for Africa. At the same time, we see that Africa has been and is currently still being used as an extraction hub for gas and other fossils to close energy gaps in the Global North. The Declaration also mentions biodiversity hotspots, but these areas are not being spared in the quest for more oil and gas by the fossil fuel industry. Deltas in Namibia and Senegal are set to become regions of environmental degradation and human rights violations just like the Niger Delta after it was pummelled by oil extraction. Additionally, the East African Crude Oil Pipeline (EACOP) is cutting through transboundary protected sites.”
Civil society criticizes African Climate Summit for promoting false solutions, not fossil fuel phaseout (Oil Change International)
“Suggestions of solutions mean little without any mention of phasing out ALL fossil fuels, not just coal. Any solution that allows business as usual from the fossil fuel industry and that emphasizes clean-up instead of closing sources of dirty energy is bound to fail and cause even more havoc on the environment and communities. The African Union needs to be bold and discuss decolonising Africa’s energy sector instead. We need strong and clear calls for reparations and system change in this critical moment instead of lukewarm self-contradicting statements. It is time that world leaders and financial institutions put in the work and money to ensure that Africa has a just transition to renewable energy instead of being locked into more fossil fuels.” – Thuli Makama, Africa Senior Advisor, Oil Change International.
Statement From GEAPP On The Africa Climate Summit 2023
The summit has showcased the leadership and agency of citizens across the continent. This summit was not about a vision for the future, it was about action that is happening right now, and GEAPP is determined to do what it takes to unlock barriers and speed up progress with new technologies, flexible financing, and new green jobs that power business and progress with the continent’s abundant renewable energy sources.
As an organisation built around collaboration, we applaud the diverse range of organisations joining together determined to drive urgent action that scales investment and expands opportunity.
Prof. Yemi Osinbajo, Global Advisor to GEAPP said: “The past three days at the Africa Climate Summit have shown the commanding role Africa can play in the climate crisis that impacts us all. The Nairobi Declaration published today reflects many hours of debate and discussion, as people from across the continent have spoken up and shared not only the challenges they face day to day, but the ideas, innovation and technologies that will carry the world forward. This is only the beginning of what needs to be done and we resolve to take all we have learnt into the global meeting series of the next few months, culminating in COP28. For the Global Energy Alliance for People and Planet, that means continuing our work to accelerate the green energy transition on behalf of the 3.6 billion people on earth who currently lack clean, reliable, affordable electricity.”
NSAS take note of progress as captured in the declaration of the Africa climate summit, calls on further action areas (The ForeFront Mag)
The Africa Climate Summit-Non-State Actors’ Committee (NSAC) welcomes the Declaration of the Africa Climate Summit, issued by the Heads of States on September 6, 2023, as a positive step towards a more ambitious, fair, equitable, ecologically just and inclusive global response to the climate crisis.
We recognise the pressing need for the global community to decrease emissions, decarbonise economies and align with the Paris Agreement, and appreciate the Declaration for reaffirming the principles of common but differentiated responsibilities and equity, which are vital for a just and efficient global response.
We also commend the Declaration for acknowledging the problem of loss and damage caused by climate change, which is already affecting several African communities. We urge the international community to put into effect the Loss and Damage Facility established during COP27 and to provide sufficient and consistent assistance to the countries and individuals who are most vulnerable.
We express our disappointment that the Declaration does not prioritize adaptation as a critical concern for Africa and leaves it a mere peripheral issue. We would like to remind the Heads of States that adaptation is not only crucial for survival but also a matter of justice. Africa is one of the regions that are most affected by climate change, even though it contributes the least to its causes. Therefore, we urge the authorities to accord equal attention and resources to both adaptation and mitigation in their national and international actions. Additionally, we demand that adaptation strategies are designed-based on local knowledge, needs, capacities, and human rights principles.
CARE International: First Africa Climate Summit falls short on delivering for the most vulnerable
Chikondi Chabvuta, Regional Advocacy Advisor, Southern Africa, CARE International: “We called on [African leaders] to listen to the voices of their people, especially the youth, women, and other vulnerable groups, who have been hit the most by the consequences of climate change. However, it was disappointing to witness most of the discussions throughout the summit, including the final declaration, focusing heavily on business and investments in carbon trading, while negating the interests of the most vulnerable populations.”
In the points of the declaration that addressed climate finance – funding to support mitigation or adaptation to climate change impacts – CARE’s Climate Policy Advisor Obed Koringo, applauded the pressure for increased international support. However, Koringo stressed there were key missing issues to guarantee urgent support to all people impacted by the climate emergency:
“The summit missed a golden opportunity to call for enhanced, flexible, new and additional finance for adaptation, and lacked the commitment to put in place what is needed to channel adaptation finance to the local level, where it is required the most.”
How Africa can help drive global climate change solutions (ONE Campaign)
Climate change poses an existential threat to life on earth. Hotter temperatures, persistent droughts, historic floods, and failed crops are happening with greater frequency. More than 3 billion people are highly vulnerable to climate change.
“Climate change isn’t an abstract or future threat to the African continent. Having neither caused nor benefited from causing climate change, African countries now bear the brunt of its impacts.” – ONE Campaign
But with the right support, investments, and policies, Africa could become a driver of climate solutions not just for itself but for the whole world. Given its significant reserves of critical minerals used to produce renewable energy, significant solar generation potential, and ecosystems capable of sequestering significant amounts of carbon, the African continent could become a green energy powerhouse.
To avoid the worst consequences of climate change, we need global collective action on three fronts: Limiting global warming; Reducing environmental degradation; and Supporting communities to adapt to the present and future impacts of climate change.
Africa and the Caribbean share deep historical and people-to-people ties. Indeed, the African Union has identified the Caribbean as Africa’s sixth region. The shared experience of the climate emergency has created another commonality, and one that presents an existential threat to both regions, particularly for small states.
African governments, similar to their Caribbean counterparts, have limited capacity to respond to the climate crisis due to debt distress and economic shocks, necessitating urgent action including debt relief and increased liquidity.
Building on Bridgetown 2.0 and the Paris Pact, the Africa Climate Summit (ACS) in September can help advance a transformational agenda to reset and reshape trade and investment relationships to build climate resilience.
However, we need to move swiftly from high-level policy discourse to tangible actions, where it matters on the ground. The private sector must be a central driver of this transformation, supported by appropriate policy frameworks. Whilst commitments at the highest levels must be secured, direct business-to-business engagement is imperative, particularly in deepening South–South trade and investment relationships. – Deodat Maharaj, Executive Director, Caribbean Export Development Agency
Reports
UNFAIR SHARE: Unequal climate finance to East Africa’s hunger crisis (Oxfam International)
The stark reality of climate change has highlighted the financial obligations rich polluting nations, especially in the global North, owe communities and countries most impacted and now unprepared to deal with the unavoidable cost of the climate crisis. East Africa is one of the world’s worst-hit regions by climate change and is now experiencing its worst climate-induced extreme weather, fuelling an alarming hunger crisis, despite contributing almost nothing to global carbon emissions. Over 31.5 million people are currently facing acute hunger across Ethiopia, Kenya, Somalia, and South Sudan.
The global climate crisis, caused in large part by greenhouse emissions because of human reliance on fossil fuels for energy and manufacturing, has led to a 1.1-degree Celsius increase in average temperature worldwide. This has resulted in extreme weather patterns, leading to food insecurity and hunger for vulnerable populations, including for 31.5 million people in East Africa who are currently experiencing crisis levels or worse of hunger due to drought and flooding. Despite contributing the least to climate change, these countries are suffering the extreme hardship and economic losses which they can ill-afford. The paper argues for greater accountability from polluters to cover the costs of averting environmental and human damages and to support long-term development efforts to build climate resilience in affected communities.
A roadmap for African resilience: addressing transboundary and cascading climate risks (SEI)
This roadmap proposes key actions towards realizing an ambition of the African Union Climate Change and Resilient Development Strategy and Action Plan (2022–2032) to “Enhance coordination between the Regional Economic Communities and Member States in addressing and managing transboundary and cascading climate risks”.
The Africa Carbon Markets Initiative: A Wolf in Sheep’s Clothing (Power Shift Africa)
Carbon credits are, essentially, pollution permits – an imaginary commodity created to benefit the wealthy, not the climate. They are a financialisaton of African nature and the climate crisis, dealing in an imaginary commodity of tonnes of carbon ‘saved’. Africa Carbon Markets Initiative claims its purpose is to create a market for a ‘high-value export commodity’. In truth, however, there are two biggest winners from carbon markets. Firstly, fossil fuel companies. The scheme allows oil and gas companies across the world to continue to burn their polluting products with impunity for profits. Secondly, financial brokers. These buy and sell the credits with huge markups. Even so, their obscene profits never trickle down to communal and even individual owners of land.
Accelerating Adaptation Finance – Africa and Global Perspectives (Global Center on Adaptation)
In the context of the Africa Climate Summit, this policy brief highlights the need to dramatically increase the amount and efficacy of adaptation financing to Africa. This brief also spotlights the persistent challenges related to adaptation finance flows in Africa, and highlights priority actions for the global finance community to undertake to address them.
Strategy and Planning to Redouble Adaptation in Africa: A Review (Global Center on Adaptation)
This study provides a detailed review of the national strategic adaptation documents prepared by governments in the African continent. It examines the main characteristics of these strategic adaptation plans, their depth and coverage, and the degree to which these documents demonstrate a supportive environment to implement the most critical adaptation programs at scale for each country.
News
A selection of news items covering the Africa Climate Summit 2023 is available below:
Inaugural Africa Climate Summit dominated by debt and finance – Eco-Business, 13 October
Climate efforts enable Africa to transform into global green hub – China Daily, 26 September
Themes of the Africa Climate (Finance) Summit: Loans, Taxes, Credits – tralac, 20 September
A Time To Change Africa’s Climate Narrative – Africa.com, 14 September
Southern Africa to benefit from big oil and gas deposits in Namibia – IOL, 14 September
The Africa Climate Summit promised the Earth, but delivered very little – Daily Maverick, 13 September
Nairobi declaration is a resounding victory for African countries – The Standard, 10 September
Africa refines its demands for the climate: financing, debt and taxes – Africanews, 8 September
A New Financing Pact for Climate-Vulnerable Countries – Project Syndicate, 8 September
Africa Climate Summit: Nairobi Declaration makes strong push for accelerated climate action and financing mechanisms – UN Africa Renewal, 8 September
Africa Climate Summit 2023 ends with ‘Nairobi Declaration’, but not everyone is happy – Down to Earth, 7 September
$23 billion pledged at Africa Climate Summit, but leaders warn of need ‘to act with urgency’ – CNN Connecting Africa, 7 September
Africa Climate Summit ends with call for action and pledge of $23bn in investment – Daily Maverick, 6 September
Africa Climate Summit 2023: Invest in resilient, efficient and sustainable food system, leaders urge – Down to Earth, 6 September
African leaders skirt over fossil fuels in climate summit declaration – Climate Home News, 6 September
At Africa Climate Summit, global leaders unite to put continent at heart of fight against climate change – AfDB, 6 September
Cross-border electricity trade key to universal access in Africa – ESI-Africa, 5 September
Hundreds of millions of dollars pledged for African carbon credits at climate summit – Reuters, 5 September
Africa Can Be ‘at Heart of a Renewable Future’, Says Secretary-General in Remarks to Nairobi Climate Summit – United Nations, 5 September
Africa must optimise all it has to achieve universal energy access, says African Development Bank head – AfDB, 5 September
In Nairobi, ECA’s Antonio Pedro calls on Africa to accelerate climate action and ensure a just transition – UNECA, 4 September
A battery swap scheme is turning Africa’s roads electric – CNN, 4 September
Africa Climate Summit to Kick off In Nairobi on 4th September – African Union, 3 September
Africa’s intensifying heatwaves show urgent need for finance – China Dialogue, 1 September
Resource-rich countries facing a double transition – Engineering News, 1 September
Related News
tralac Daily News
South Africa to Face Pressure from Trade Partners to Ditch Coal (Supply Chain Brain)
South Africa must accelerate its transition to renewable energy to avoid export penalties being threatened by key trading partners, a government official said September 6. “We’re doing this for ourselves because it is absolutely the right way to go,” said Vukile Davidson, the National Treasury’s chief director of financial markets and stability. “But we are also going to increasingly have to deal with external pressure.”
The European Union plans a levy on certain carbon-intensive imports, though South Africa has argued the so-called carbon border adjustment mechanism may break World Trade Organization rules. South Africa, which gets 80% of its electricity from coal, is trying to increase its supply of renewable energy to reduce greenhouse gas emissions and its reliance on Eskom Holdings SOC Ltd.
The country is suffering from its worst power outages on record because the state-owned utility’s poorly maintained and aging power stations can’t meet demand. Part of preparing for the country’s energy transition is legislation to provide the regulatory certainty necessary to draw capital from the private sector.
New Trans Kalahari Corridor takes a significant step towards economic development (Windhoek Observer)
Namibia, Botswana, and South Africa have taken a significant step toward boosting trade and regional development with the inauguration of new offices of the Trans Kalahari Corridor Secretariat offices in Windhoek. Namibia’s Minister of Works and Transport, John Mutorwa along with his counterparts from Botswana and South Africa marked the occasion with optimism and a shared commitment to the corridor’s growth and impact on the Southern African region.
The Trans Kalahari Corridor (TKC) represents a tripartite transboundary corridor management institution with a vision to foster deeper regional integration programs, including those of the Southern African Development Community (SADC), the Southern African Customs Union (SACU), and the New Partnership for Africa’s Development (NEPAD). The agreement encapsulated a shared commitment to eradicating poverty and promoting sustainable growth and development in the region.
The inauguration of the Trans Kalahari Corridor Secretariat offices represents a significant milestone in the ongoing effort to enhance trade and regional cooperation among Namibia, Botswana, and South Africa. As this vital transport corridor continues to ease the movement of goods and people, it is poised to play a central role in propelling the development agendas of these nations and fostering greater integration in Southern Africa.
Ruto touts cross-border trade, youth in agriculture (Tanzania Daily News)
Kenya’s President William Ruto has called African leaders to utilise their country’s territorial borders as the bridges for cross-border trade and not barriers, while also insisting that there is no future in agriculture, unless the continent brings young people on board.
Dr Ruto commended President Samia Suluhu Hassan for swiftly facilitating smooth flow of goods between Tanzania and Kenya. President Ruto noted that Kenya is a major consumer of Tanzania’s food despite the fact that few years back, there were few people in the borders, who delayed consignments entry in either country. He made the statement while addressing delegates who took part in hybrid form during the presidential summit at the Africa Food Systems Forum 2023 at the Julius Nyerere Convention Centre (JNICC) in Dar es Salaam, on Thursday.
Mr Ruto said swift flow of food crops through the border from Tanzania to Kenya will bring balance of trade between the two nations. To increase agro production in Africa, he underscored youth inclusion in the sector, referring to the fact that in many African countries including in Tanzania, there is enough untapped arable land, which upon fully utilisation will offer stable employment and food security.
Zambia key to Namibia’s trade objectives – Iipumbu (New Era)
Namibia and Zambia this week signed four agreements in the fields of industrial development cooperation as well as competition and standards in a bid to boost trade and cooperation between the two countries. This is part of a continuous effort to strengthen bilateral relations as sister countries. Trade and industrialisation minister Lucia Iipumbu emphasised the recent agreements must be implemented for progress to be provided at the next Namibia-Zambia Joint Trade and Investment Committee (JTIC) ministerial meeting.
“Namibia recognises trade as an economic catalyst for most of the developmental activities in the country. In this regard, Namibia prioritised trade and investment with her neighbours and Zambia is one of the countries of strategic importance with the potential to further improve trade benefits,” said Iipumbu on Tuesday in Lusaka. Iipumbu noted the two countries must identify and leverage key priority business, trade and investment opportunities in various sectors. This, she said, should be done while focusing on collaborative efforts specifically targeting value chain development in a bid to diversify the two economies. “We must also consider enhancing supply chain exchanges at a technical level to focus on manufacturing and value addition,” Iipumbu added.
Nigeria has potential to increase value of cocoa, says Thompson (The Guardian Nigeria)
Nigeria has a lot of potential to increase the value of cocoa, as the produce is yet to be well understood, appreciated and consumed in Africa. This was the submission of the Oloni of Eti-Oni, Osun State, Oba Dokun Thompson Gureje IV, delivered at the Nigerian British Chamber of Commerce (NBBC) 2023 Trade Mission to the UK, held at the Hilton London Kensington Hotel, stating that the value of most of the products is in its consumption even at the farm gate and not just in export as raw materials.
“The Nigerian market is a dynamic one that requires innovation and clear understanding of the people,” he said. Oba Thompson revealed that the agric sector offers incredible opportunities in production, processing and manufacturing, with a land mass of 923,768sq.k and 38.43 per cent reported as arable land in 2020.
“There is a lot of potentials to increase that value because cocoa as a product like coffee though produced in Africa is yet to be well understood, appreciated and consumed in Africa and the value of most of these products is in its consumption even at the farm gate and not just in export as raw materials.”
Africa Food Systems Forum 2023: Minister Mivedor Promotes Togo in Tanzania (Togo First)
The Togolese Minister for the Promotion of Investment, Rose Kayi Mivedor, is in Dar es Salam, Tanzania. She is attending Africa’s Food Systems Forum 2023 (AGRF) which started on Tuesday, September 5, and ends today, September 8. Mivedor, on Thursday, told the forum’s participants about business opportunities available in Togo. Among others, she said her country positions itself as West Africa’s natural gateway regarding the African Continental Free Trade Area (AfCFTA).
According to the official, Togo is the obvious choice because of its main port, the Autonomous Port of Lomé, which is the only deep-water port in West Africa. She added that the port gave access to surrounding landlocked countries, Mali, Niger, and Burkina Faso. “We play a pivotal role as a communication corridor between coastal countries, passing through Nigeria, Benin, Togo, Ghana and Côte d’Ivoire. Therefore, we position ourselves as a platform that facilitates the storage of goods for redistribution to other countries,” Mivedor declared.
Report stresses trade agreements to boost imports, exports (Tanzania Daily News)
THE African trade agreements have been cited as among major initiatives that can help boost agricultural imports and exports as well as curb the adverse effects of climate change by including actionable provisions, according to the latest. However, the report has underscored that the East African Community (EAC) has one of the highest ratios of agriculture to GDP among the regional economic communities examined, as well as the highest introversion index, indicating a high intensity of intraregional trade.
Published by AKADEMIYA2063 and the International Food Policy Research Institute (IFPRI) at the 13th Africa Food Systems Forum (AGRF), the 2023 AATM calls for concerted regional- and continental-level action toward sustainable trade flows and more environment-friendly trade policies. The report has also delved into the negative impacts of the Russia-Ukraine war on fertilizers and food trade and recommends action to lessen the effects of the shocks on African countries and consumers.
“The 2023 AATM analyzes opportunities to “deepen” trade agreements to increase intra-African trade while prioritizing import diversification by tapping into the continent’s natural endowments and the deployment of new and greener technologies to lessen the impact of global shocks like the Ukraine crisis. With the African Continental Free Trade Area (AfCFTA) agreement underway, there will be added value in policy reforms to streamline and harmonize agriculture-relevant frameworks toward increased food security and a larger agrifood global market share for Africa,” said Executive Chairperson of AKADEMIYA2063, Dr Ousmane Badiane.
EAC standards national agencies agree on new measures for smooth trade (The Independent Uganda)
The East African Community partner states have through their standards regulators agreed on 11 measures aimed at improving the standard of food products on the market. The move is also aimed at ensuring the protection of local consumers against food-borne diseases and a smooth flow of trade within the region.
For years, the EAC has been debating the need for the harmonisation of product standards but a concrete outcome is yet to be realised. This in turn continues to play as an advantage for individual states to restrict the flow of products from one to another. Presiding over the high-level regional meeting for policy and decision makers on Food Safety and Codex activities in the EAC was Minister for Health Jane Ruth Aceng.
The meeting, hosted by the Uganda National Bureau of Standards (UNBS) in Entebbe also adopted four policy briefs that provide recommendations on mitigating the impact of current Food Safety issues of interest in the region. They recommended improved government engagement in regional and international standard-setting activities to contribute effectively to the development of food safety standards and increased investment in Food Safety and Codex, including capacity building for value chain actors, to manage risks and ensure compliance with food standards.
The Minister of Trade, Industry and Cooperatives, Francis Mwebesa pledged government commitment to investing in quality standards and infrastructure like food safety laboratories to ensure accessibility and availability of safe food in Uganda and exports to the region.
More seven years of waiting: Is EAC stuck on realising single currency? (Monitor)
In only four months, the East Africa Community (EAC) would be adopting a single monetary union. However, this won’t be the case. Beginning next year, enforcement of the EAC Monetary Union, according to timelines, would have been on the agenda after it was adopted in accordance with the EAC Treaty and signed on November 31, 2013. However, the plan to have the single currency in 2024 has since collapsed with the EAC Council of Ministers pushing it further to 2031.
The delay, according to the 43rd meeting of the EAC Council of Ministers was informed by the presumption that it would be too soon to attain all necessary requirements. Experts interviewed for this article say the monetary union is an important stage in the EAC integration because it allows partner states to progressively converge their currencies into a single unit. Experts also believe there are overlapping fears of loss of employment resulting from labour mobility and competition, land grabbing and overlapping regional membership.
Illegal Pharmaceutical Trade Taking Over Across West Africa (OCCRP)
An extraordinarily lucrative industry, on both sides of the law, pharmaceuticals has taken West Africa’s criminal underworld by storm. Illicit medical product sales are now estimated to have eclipsed US$1 billion, more than the value of the region’s crude oil and cocaine trafficking markets combined.
The problem is not isolated within Africa alone; the World Health Organization has estimated that 10% of all medical products sold in low and middle income countries either do not meet medical standards or are falsified entirely. Nearly half of the reported counterfeits, however, were traced back to Africa, where a lack of proper infrastructure, production facilities, and transportation access has resulted in criminal enterprises seizing more than 40% of the market.
“Substandard and falsified medicines particularly affect the most vulnerable communities,” said WHO Director-General Dr. Tedros Adhanom Ghebreyesus. GI-TOC’s report estimated that 90% of African countries do not possess the necessary resources to regulate their respective pharmaceutical industries. This further opens the door for organized crime to step in to fill market demand, as well as corrupt local government and regulatory officials mandated to work with legitimate medical distributors and retailers.
Amidst the pursuit of sustainable development and energy security, Africa is undergoing transformation, with regional integration playing a pivotal role. Regional power pools, epitomizing collaborative efforts, address the continent’s energy challenges effectively. As new energy supplies are brought on the market, this year’s edition of the African Energy Week (AEW) conference – scheduled for October 16-20 in Cape Town – will explore the role regional power systems play in Africa.
Under efforts to connect markets, African countries put in place regional power pools, all of which have been instrumental in facilitating energy access and distribution. The emergence of innovative energy resources, such as gas-to-power technologies, holds promise for the continent. These innovative solutions have the potential to revolutionize the energy landscape, providing cleaner and more sustainable alternatives. However, the integration of these resources into the existing infrastructure presents its own set of challenges.
This is where the role of regional power pools becomes even more crucial. Power pools act as streams for the efficient distribution and utilization of these new energy resources. Gas-to-power technologies, for instance, require a robust infrastructure for transportation, distribution, and utilization. By leveraging the existing interconnectivity facilitated by power pools, African nations can streamline the integration of these technologies, ensuring their seamless adoption across borders.
The 2nd Africa Business and Human Rights Forum called for Inclusive Growth that respects Human Rights (African Union)
The second African Business and Human Rights Forum has concluded with a call for action from all stakeholders to promote robust, inclusive growth that respects human rights and increases prosperity Under the theme ‘For Africa, from Africa’, this year’s forum held from 5 to 7 September 2023,for people across Africa.
At the opening of the Forum, on behalf of AU PAPS Commissioner Bankole Adeoye, Mme Patience Chiradza, Director of the Governance and Conflict Prevention Directorate of AU PAPS, expressed the need to adopt the AU policy on business and human rights to promote coherence at the national and regional levels. “This forum is the Testament to our collective resolve, shared vision and unbreakable commitment to fostering responsible business conduct in the continent bustling with potential,” she stressed.
At the closing session, representatives of different stakeholder groups expressed commitments moving forward, indicating a strong willingness and need for greater collaboration and coordination among different countries, regions, and sectors to continue the push for greater corporate accountability and to accelerate momentum in business and human rights across Africa.
G20: positive signals on the integration of the African Union (Africanews)
The African Union (AU) seems well on its way to becoming a permanent member of the G20, several officials suggested Friday, on the eve of a summit of this organization bringing together the largest developed and emerging economies on the planet.
Indian Prime Minister Narendra Modi, whose country holds the presidency of the G20 this year and is hosting the heads of state and government this weekend, has shown in recent days his desire to expand this group with “ inclusion of the African Union as a permanent member. A senior official at the Indian Ministry of Foreign Affairs, Vinay Kwatra, said he expected a decision on Saturday morning at the summit. However, it is still possible that a G20 member vetoes.
Green trade will be the focus of this year’s WTO Public Forum. Here’s everything you need to know (The European Sting)
“The future of trade is green,” says World Trade Organization (WTO) Director-General: Ngozi Okonjo-Iweala. “Trade can support national and international efforts to keep the ambition of limiting global warming to 1.5°C alive.”
The specific ways in which trade can contribute to a greener and more sustainable future will be the focus of the WTO’s Public Forum on 12-15 September. Taking place at the WTO’s headquarters in Geneva, Switzerland, the Public Forum will feature around 90 interactive sessions, with topics including The Route to Transport Decarbonization, Green Energy Investments in Africa and Promoting Smallholders’ Inclusion in the Advancement of Green Trade.
Some of the green trade highlights of this year to be discussed during the Forum include supply chains – the social dimension; green subsidy race; zero-emission cargo ships; FDI and climate goals; and trade buzzwords: friendshoring, nearshoring, reshoring and offshoring.
MSMEs, GVCs, and digitisation: Outcomes from the G20 trade and investment ministerial (ORF)
The G20 Trade and Investment Ministers Meeting (TIMM) concluded in Jaipur on 25 August 2023. The pdf Outcome document (839 KB) from the Ministers meeting highlighted key areas of cooperation including, Trade for Growth and Prosperity, WTO Reform, and Logistics for Trade. Most notably, the document highlighted five deliverables, namely, the G20 Generic Mapping Framework for Global Value Chains (GVCs), the Jaipur Call for Action for enhancing access to information for Micro Small and Medium Enterprises (MSMEs), the High-Level Principles on digitalisation of trade documents, the development of a Presidency’s Compendium of best practices on Mutual Recognition Agreements (MRAs) for Professional Services, and the suggestion to hold a G20 Standards Dialogue in 2023.
In a post-COVID world that has witnessed critical supply chain disruption, the G20 Generic Mapping Framework for GVCs proposes coordination and preparedness to limit future disruption of value chains. It seeks to identify vulnerabilities and build more resilient value chains by proposing high level principles including analysis, collaboration, coordination, preparedness, inclusion, and sustainability. The framework also lays emphasis on increased participation and greater value generation by Least Developed Countries (LDCs) in GVCs.
While this framework remains voluntary and non-binding, it lays down the guiding principles for a coordinated effort to create more resilient value chains. In October 2021, supply chain turmoil was identified as the “greatest threat“ to growth for the company and the country’s economy by corporate CEOs. This threat was considered greater than geopolitical instability, the pandemic, and labour shortages.
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Africa Climate Summit
Outcome document
Africa Climate Summit ends with call for action and pledge of $23bn in investment (Daily Maverick)
The inaugural Africa Climate Summit concluded on Wednesday with the adoption of the Nairobi Declaration, a document that highlighted Africa’s vulnerability to the climate crisis and called for more ambitious and progressive action from the developed world. Leaders of nations and their governments adopted the declaration, which called on the international community to assist Africa through investment in its decarbonisation agenda.
In addition to the declaration, the summit secured $23-billion in investment from various stakeholders. The funds will go towards “green growth, mitigation and adaptation” across Africa. The commitments included a $4.5-billion initiative from the UAE’s COP28 president towards 15GW of clean energy in Africa by 2030.
The declaration calls on countries to “invite development partners from both the Global South and North to align and coordinate their technical and financial resources directed toward Africa to promote sustainable utilisation of Africa’s natural assets for the continent’s progression toward low carbon development, and contributing to global decarbonisation”.
Africa Climate Summit fails to deliver on African solutions for a clean energy future (Greenpeace Africa)
The African Union released The African Leaders Nairobi Declaration on Climate Change and Call to Action on the last day of the Africa Climate Summit. This week, 17 Heads of State, Ministers and Members of Parliament came together to discuss the nuanced issues of climate change, climate change finance and the future of Africa’s energy system.
Alongside this summit, 500 African Civil Society Organisations (Africa People’s Climate Assembly) organized the Real Africa Climate Summit to highlight the disregard of the interests and voices of the African people and to provide an alternative space to share experiences and provide solutions for real climate action.
During the summit, the overarching sentiment has been that Africa has to become a hub for clean energy and a leader in low-carbon economy-based development. However, civil society has been concerned about the agenda on false solutions such as carbon markets, carbon credits and the use of technology as a viable alternative to phasing out harmful fossil fuels. These concepts are led by Global North interests and are being marketed as African priorities when in reality they will embolden wealthy nations and large corporations to continue polluting the Africa.
As a response to the agenda that did not represent the people’s interest, civil society actors organised a People’s March and Assembly and launched a People’s Declaration to counter the official Declaration of the Summit.
Related: Natural gas is key to Africa’s industrialisation process and to ending the region’s massive energy poverty (Namibia Economist)
Africa’s vast natural gas reserves are key to bringing energy to Africa’s poorest countries, to a solid industrialisation process throughout the region, and significant poverty reduction.
The region is home to 33 of the world’s 46 least-developed countries (LDCs) with an average income per head of less than $1,018 a year. The continent’s poorest countries must expand at 6-7% a year if poverty is to be reduced in a big way and if the life chances of hundreds of millions of people are to be improved. To achieve this goal, these countries require abundant and cheap energy. Luckily, for many African states, the answer lies on their doorstep — natural gas. Gas has remained a niche fuel in sub-Saharan Africa — contributing only 5% of the total energy mix against a global average of 20-25% — but its potential is enormous.
A new vision for Africa is required — a crisscrossing network of natural gas pipelines that brings energy to all corners of the region. The continent’s contribution to global greenhouse gas emissions is tiny and will only become slightly bigger if the region’s natural gas reserves are exploited. There is also a massive opportunity to wean poor Africans away from the use of biomass fuel and to help protect the region’s forests through the rollout of small, liquified petroleum gas (LPG) stoves. Climate change is an issue in Africa but poverty reduction is a bigger one. Poverty is the biggest killer in Africa today.
How SA’s trade relations with China are strengthening (Bizcommunity)
Trade between China and South Africa is set to grow further after several announcements on trade were made at the Brics summit, held in South Africa in August 2023. At the summit, the countries agreed to narrow the trade deficit by increasing access to Chinese markets for South African products.
In this regard, China has recently begun importing South African beef after a block on the product (due to foot and mouth disease) was lifted. The two countries also agreed to allow avocados to be exported from South Africa to China. China also announced at the summit that it would donate energy equipment worth around R167m ($8.97m) and a grant valued at around R500m ($26.9m) to South Africa to assist with its energy crisis, although no deadlines were given.
Kenya horticulture exports rebound on stronger euro (The East African)
Kenya’s earnings from horticultural exports for the half-year period through June recovered from a double-digit fall in the prior year amid a strengthening euro and moderating inflationary pressures, official data shows.
Sales from horticultural exports amounted to Ksh69.48 billion ($476.1 million) in the review period, according to data collated by the Central Bank of Kenya (CBK), a modest 7.16 percent rise from Ksh64.84 billion ($444.3 million) in a similar period last year.
The increased earnings came at a time when the euro appreciated 16.54 percent against the shilling between January and June, boosting revenue for Kenyan producers who largely earn in the eurozone currency. About 70 percent of Kenya’s horticulture exports are paid in euros, according to industry estimates, while nearly a fifth of the consignments are paid in the British pound.
Mobile money now at 70% of Kenya’s GDP – report (The Star)
Mobile money transactions in Kenya has hit 68 percent of GDP as remittances continue to drive growth, according to data company Global Voice Group (GVC). It is estimated that Kenyans make an average of Sh21.7 billion worth of mobile money transactions, highlighting the pivotal role mobile money plays in the economy.
Data from the Kenya National Bureau of Statistics for the year 2022 shows that the overall value of mobile money transactions reached an astounding Sh7.91 trillion, marking a 15 percent surge compared to the figures reported in 2021.Increasing use of mobile money has sparked competition between mobile money wallets and commercial banks, as Kenyans gradually abandon cash-based transactions, which remain dominant, in favour of digitally enabled alternatives, particularly mobile money.
A paper titled “Data-Driven Transparency and Compliance in the Digital Financial Ecosystem in Africa”, by GVC shows that mobile money and remittances will continue to dominate Africa’s economic development if supported with tools to boost data-driven transparency and compliance.
AfCFTA’s success hinges on industrialisation – expert (The Business & Financial Times)
The African Continental Free Trade Area’s (AfCFTA) success hinges on the continent’s ability to embrace industrialisation and focus on boosting productive capabilities, Global Chair of Brazil, Russia, India, China and South Africa (BRICS) Business Council, Busi Mabuza, has reiterated. Equally important, she stressed, is the need for collaboration and cooperation to unlock the economic potential of respective nations. Also, embracing partnerships and alliances can create new avenues for investment and mutual growth, she said.
“We cannot afford to fail in unlocking the opportunity of industrialising the African continent. It is important that we move away from extractive relationships that the continent had in the past to where our partners come and help us industrialise... To make it a reality, we need a regional value chain; we need infrastructure to enable logistics, the transportation of goods and ease of providing services,” she told the B&FT in an exclusive interview. “Most especially, we need to unlock the energy opportunity in a manner that enables a sustainable future for us,” she added.
African trade agreements can boost agricultural imports and exports and curb the adverse effects of climate change by including actionable provisions, according to the latest Africa Agriculture Trade Monitor 2023. Published by AKADEMIYA2063 and the International Food Policy Research Institute (IFPRI), the 2023 AATM calls for concerted regional- and continental-level action toward sustainable trade flows and more environment-friendly trade policies. The report also delves into the negative impacts of the Russia-Ukraine war on fertilizers and food trade and recommends action to lessen the effects of the shocks on African countries and consumers.
Unveiled at this year’s Africa Food Systems Forum (AGRF) in Dar es Salaam, Tanzania, the 2023 AATM provides high-quality trade statistics using consistent indicators to monitor trends in Africa’s participation in global trade as well as the status of intra-African trade. The report finds that Africa’s regional trade agreements (RTAs) do not exert a significant impact on its agricultural trade. The analysis attributes this to “shallow” trade agreements that focus on tariff reductions only, with limited impact on the agri-food market. The research highlights opportunities to include provisions on non-tariff measures and enhance their legal enforceability to accelerate intra-African agri-food trade. The report also calls for RTAs to include climate-related provisions to boost the contribution of trade to combat the negative impacts of climate change.
Africa’s poor interest in agriculture blamed for continual food shortage (The East African)
Africa’s low-level investments in agriculture is fueling continual food shortage on the continent, in what could indicate that lack of political will, rather than weather patterns or conflict is directly at fault. Leaders and experts gathering in Dar es Salaam, the commercial capital of Tanzania, have been told this week that continued poor investments in agricultural production including use of modern technology are hurting continental ambitions to feed itself. And its rising population is not helping.
Since Monday, Africa’s top brains in food security have been discussing proper policy in agriculture at the Africa Green Revolution Forum. And they have been consistent in calling for huge investments in agriculture to ward off food insecurity caused by the prolonged droughts.
Tanzania’s Vice-President Dr Philip Mpango told the forum inadequate financing of food value chains is also still a major constraint, mainly due to high cost of borrowing for the agriculture sector. Additionally, women and youth tend to be the most financially excluded segments of the population. The looming food deficit, coupled with rising import bills and a wide range of nutritional challenges, undermine regional output growth and the continent’s drive towards Agenda 2063.
Advancing a developed African Fisheries and Aquaculture (AU-IBAR)
The second meeting of the revised African Fisheries Reform Mechanism (AFRM), Think Tank Executive Committee (TTEC) is currently underway in Naivasha, Kenya. The event organized by the African Union Interafrican Bureau for Animal Resources (AU-IBAR) in collaboration with AUDA-NEPAD seeks to review and enrich position papers and knowledge products that support sustainable fisheries and aquaculture across the African continent.
AU-IBAR conducted research on 53 AU Member States and reviewed best practices on fisheries and aquaculture. The findings provided essential insights into the challenges and opportunities facing the sector. The study revealed that many African countries currently lack fundamental institutions and management required to achieve the objectives set out in the African Union’s Policy Framework and Reform Strategy (PFRS). Long-term commitment is crucial for building human and institutional capacity and realizing PFRS outcomes. Public sector programs often have short lifespans, whereas long-term programs are required for sustained growth.
The effectiveness of governance in the fisheries and aquaculture sector, as well as the development of value chains, now significantly rely on the efficiency of regional fishery management organizations (RFMOs), agreements within Regional Economic Communities (RECs), and the implementation of certification schemes. A comprehensive understanding of existing value chains, particularly in rapidly growing aquaculture sectors, is essential for designing effective interventions. Collaboration between strong governance institutions, including national governments, regional fisheries bodies, and non-state actors, is pivotal for building robust fishery and aquaculture value chains.
Technology can boost agric in Africa – Bagbin (The Business & Financial Times)
The Speaker of Parliament, Alban Sumana Kingsford Bagbin, has called on African governments to focus on innovation and technology in farming if Africa is to attain its potential as the world’s food basket. He was speaking at the Convention and 30th anniversary of the Council of Ewe Associations of North America (CEANA) in Atlanta, Georgia, under the theme ‘Empowering our youth toward innovative entrepreneurship in transformational agriculture’.
The Speaker said technologies such as GPS, sensors, drones and data analytics must be deployed in agriculture to optimise resource use, monitor crop health and improve yields. It will also enable the youth in agriculture to make informed decisions based on reliable data, reduce waste and increase efficiency.
“If governments direct resources into modernising agriculture and infuse technology into farm practices, more youth will opt for the sector. This will address the challenges of feeding a global population sustainably, create economic opportunities for rural communities and transform how we produce, distribute and consume food,” he said.
Turkish President Recep Tayyip Erdogan’s meeting with his Russian counterpart Vladimir Putin on Monday failed to yield a breakthrough in the revival of the Black Sea Grain Initiative, according to experts. Following the meeting, Erdogan expressed optimism about the initiative, but concrete evidence of a breakthrough remains elusive. Meanwhile, Putin reiterated accusations against the West for failing to meet its obligations under the agreement.
Analysts are concerned that the absence of the grain deal will threaten food security in low-income nations in the Middle East and Africa, urging the West to offer Russia the necessary guarantees to maintain a crucial food supply chain. The failure to resurrect the Black Sea grain deal could have far-reaching consequences on low-income countries which heavily rely on Ukrainian and Russian grain exports.
Before its suspension, the original deal facilitated the export of nearly 33 million tonnes of grain from Ukraine to global markets, benefiting developing countries, particularly in the Middle East and Africa. Russia’s withdrawal from the agreement in July had already impacted global grain prices, raising concerns about food security and a potential worldwide food crisis.
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Facelift for land ports of entry (SAnews)
Home Affairs Minister, Dr Aaron Motsoaledi, says officials are committed to making the country’s border posts safer, less porous and more efficient in the facilitation and easing of trade, as well as the legitimate movement of people. “The South African government is committed to putting in the latest infrastructure and relevant technology in its efforts to modernise and upgrade our ports to be on par with the current global best practices on border management,” Motsoaledi said.
Addressing media in Pretoria on Wednesday, Motsoaledi said the main objective of upgrading border posts is to make it easier for law-abiding people and companies to easily enter and exit South Africa through the borders, while the illicit movement of persons and goods is nipped in the bud.
“Since the advent of democracy, there has been an exponential increase in the number of people moving between South Africa and the countries in the region. The volume of regional and international trade has similarly increased. “As a result, our land ports of entry are very congested and that continues to stifle trade, instead of enabling it. If you want to understand what we are talking about, just take a visit to the Lebombo Border Post between SA and Mozambique, where you will see trucks lining up for kilometres, bumper to bumper, for hours on end, on the N4 Corridor,” Motsoaledi said.
Zimbabwe Beitbridge border post project a flagship PPP (Engineering News)
South African infrastructure development and construction materials supply group Raubex CEO Felicia Msiza enthuses that the project Raubex completed for the Zimbabwean government’s road authority Zimborders at the Beitbridge border post last year is a testament to Raubex’s 49 years of experience. She hopes this project will be the first of many public-private partnerships (PPPs) for the company, as the experience gained on this project will position the company well to contribute to PPPs in the South African market going forward.
She also emphasises the importance of the meticulous planning and stakeholder engagement that was required to complete the $172-million contract. The overall scope of the project was to build a modern border post that facilitates trade, tourism and enhances the traveller’s border crossing experience through the “gateway of Africa”.
South Africa to Face Pressure From Trade Partners to Ditch Coal (Daily Maverick)
“We doing this for ourselves because it is absolutely the right way to go” said Vukile Davidson, National Treasury’s chief director of financial markets and stability. “But we are also going to increasingly have to deal with external pressure.” The European Union plans a levy on certain carbon-intensive imports, though South Africa has argued the so-called carbon border adjustment mechanism may break World Trade Organization rules.
South Africa, which gets 80% of its electricity from coal, is trying to increase its supply of renewable energy to reduce greenhouse gas emissions and its reliance on Eskom Holdings SOC Ltd. The country is suffering from its worst power outages on record because the state-owned utility’s poorly-maintained and aging power stations can’t meet demand.
Part of preparing for the country’s energy transition is legislation to provide regulatory certainty necessary to draw capital from the private sector.
Steel industry is central to South Africa’s industrialisation path says government (Metalworking News)
“Steel is one of the most important materials in the world. It is present in most aspects of the economy, from transportation and other infrastructure to more simple aspects like containers. Steel is used in the production of colossal structures, as well as small components for precision instruments,” said Trade, Industry and Competition Deputy Minister Fikile Majola in an address at the South African Iron and Steel Institute’s Southern African Steel Summit, held in Johannesburg recently.
“South Africa is endowed with one of the most diverse and valuable mineral resource portfolios globally. These range from precious metals, ferrous and non-ferrous metals and other industrial metals. At the peak of the industry’s performance in 2010, South Africa accounted for 0.59% of global steel production. Due to the decline, our country accounts for just 0.23% of global steel output and is ranked 34th in the world.”
“We have a massive challenge on our hands and we need to work tirelessly to regain our position as one of the top producers of steel globally. South Africa’s steel value-chain, with backward and forward linkages, is critical in building a sustainable economy that is underpinned by multiple sectors that are dependent on the steel industry. The sectors that should support our quest to build a sustainable economy include construction, mining, automotive, energy, packaging and transport.”
NamRA clarifies import procedures for goods from non-SACU Member States (Windhoek Observer)
Importing goods from non-Southern African Customs Union (SACU) member states into Namibia involves a series of procedures and regulations governed by the Customs and Excise Act, 1998 (Act No. 20 of 1998). In a notice, the Namibian Revenue Agency said regulations aim to ensure transparency, tax compliance, and adherence to health and environmental standards. Navigating these importation procedures is crucial for ensuring compliance with Namibia’s customs regulations and fostering trade while protecting public health and the environment. Importers and travellers are encouraged to familiarize themselves with these regulations to facilitate smooth and lawful importation processes.
In accordance with the Customs and Excise Act (section 40(2)(e)), commercial goods valued at N$500 or more that attract duties as per Schedule 1 must be paid upon importation into SACU. For example, when importing dry wild berries (eembe) or bird plum (scientific name: berchemia discolor) under HS code 0813.40.00 for commercial purposes from outside SACU, the importer is subject to a 10 percent general rate of customs duty. Informal traders, however, must pay the normal rate of 10 percent customs duties and 16.5% value-added tax (VAT) or opt for a 20% flat rate based on the imported goods’ value.
East African govts to fast track single currency (New Vision)
East African Community (EAC) governments have been asked to fast-track the implementation of a single currency to facilitate trade in the region. According to the East African Budget Network (EABN), the East African countries have not done enough to deliver on the pending actions of the East African monetary union roadmap for an East African single currency.
“We find that countries are still lagging behind. All the targets we were supposed to have by 2024 have now been pushed to 2031. We believe the way we do work, we might not even achieve that. There should be some different strategy that the countries need to do to work so hard to achieve the targets that we want,” Julius Mukunda, he executive director Civil Society Budget advocacy Group (CSBAG), said. He made the remarks over the weekend during the East African Monetary Union Civil Society Summit held in Kampala.
The plan to have a single East African currency in 2024 collapsed in 2019 after the EAC council of ministers, the central decision-making and governing organ of the EAC, resolved the deadline was not attainable, sending member countries back to the drawing board. This extended the deadline for attaining a single currency regime to 2031 to eliminate transaction costs of exchanging currencies and remove volatility in cross-border trading activities.
Isaka cargo volume surges 30pc in four months (Tanzania Daily News)
Isaka Dry Port has registered 30 per cent cargo volume increase in the last four months thanks to the Uganda-Tanzania crude oil pipeline project. The dry port in Kahama, Shinyanga saw the cargo volume rise to 8,000 metric tonnes per month registered recently from 6,000 tonnes in April.
The Dry Port Officer, Mr Abel Mshang’a, said at the just ended 2023 Mwanza East Africa Trade Fair (MEATF) exhibitions that oil pipeline was a blessing for the port and the volume is projected to increase further. “We are also in talks with more new clients—local and international,” Mr Mshang’a told the `Daily News’ on Monday.
The port is eyeing a transport deal of some 10,000 tonnes of fertiliser to Burundi and also another firm that will bring in trench digging machines for the oil pipeline. The East African Crude Oil Pipeline EACOP runs 1,443km from Kabaale, Hoima district in Uganda to the Chongoleani Peninsula near Tanga Port in Tanzania. Eighty per cent of the pipeline is in Tanzania. It is a buried thermally insulated 24 inches pipeline along with six pumping stations—two in Uganda and four in Tanzania—ending at Tanga with a Terminal and Jetty
“Isaka is expecting further increase of the cargo volume to at least 10, 000 tonnes, on a monthly basis, when the two new clients start using the port,” he said.
Stakeholders lament complex export levy, documentation (The Guardian Nigeria)
Stakeholders have lamented what they described as extremely complex export procedures and documentation processes by numerous government agencies in Lagos State. This is even as they urged the Federal Government to scrap export levy collections on agricultural products and collection of registration charges on Domestic Export Warehouses (DEWs).
The former Chairman of the Export Group of the Nigerian Association of Chamber of Commerce, Industries, Mines and Agriculture (NACCIMA), Kola Awe, said there is an imposition of export levy of $5 for five different cargoes, including Cocoa, Ginger, Cotton and Rubber, while every other one is $15. Awe also noted that exporters are avoiding taking their goods to the established government export warehouses because of the export levies. He said the cost of registering at the export warehouses is expensive while calling on the government to make it lower so that exporters can be encouraged to use it.
“Our ports are not yet paperless. When it comes to the examination side, the same number of agencies are there. It impedes the whole essence of global best practices and competitiveness, the processes are extremely too much,” he stated. “The Standard Operating Procedures (SOP) on export says that all exports must originate from export warehouses, but today, 80 per cent of exports do not originate from these warehouses,” he noted. Awe further highlighted the need for the government to deploy technology into the port process. He said the country must implement a single window platform for trade documentation that will reduce time and cost for cross-border trade.
Africa Climate Summit concludes with ‘Nairobi declaration’ (DW)
The landmark Africa Climate Summit in Nairobi, Kenya, came to a close on Wednesday with leaders adopting a joint “Nairobi declaration” to highlight the continent’s potential as a green powerhouse and encourage other world leaders to support new global carbon taxes. “This declaration will serve as a basis for Africa’s common position in the global climate change process,” read the final document. “No country should ever have to choose between development aspirations and climate action.”
Backed by the leaders of the continent of 1.3 billion people — a population set to double by 2050 — the declaration will form the basis of Africa’s negotiating position at November’s COP28 summit. “Decarbonizing the global economy is also an opportunity to contribute to equality and shared prosperity,” it said.
Agreed upon unanimously by leaders at the three-day summit, the declaration calls on the world’s biggest emitters of greenhouse gases and its richest countries to keep their promises — noting in particular an unfilled pledge of $100 billion in annual climate finance to developing nations, made 14 years ago — and for today’s world leaders to rally behind a global carbon tax on fossil fuels, aviation and maritime transport.
During the summit, governments and private investors committed billions of dollars to green initiatives, including a $4.5 billion (roughly €4.2 billion) pledge by November’s COP28 hosts the United Arab Emirates (UAE). But the declaration warned that unlocking green growth across the continent “on a scale that can contribute meaningfully to decarbonization of the global economy” required a massive increase in funding.
World leaders on the second day of the inaugural Africa Climate Summit in the Kenyan capital Nairobi have pledged their support to position the continent at the epicentre of the fight against climate change, urging greater consideration for Africa’s needs. Kenya’s President William Ruto said Africa’s youthfulness was “precisely the attribute that inspired African leaders to imagine a future where Africa steps onto the stage as an economic and industrial power, an effective and positive actor in the global arena”.
African Development Bank President Akinwumi Adesina has announced a new $1 billion fund to accelerate climate financing for Africa’s youth businesses. Adesina made the $1 billion announcement during a High-Level Intergenerational Dialogue: Africa Driving Climate Adaptation Solutions and Jobs, held at the Wangari Maathai Institute of Peace and Environment on the outskirts of Nairobi.
The AfCFTA, boosting regional integration through trade (UNECA)
The African Continental Free Trade Area (AfCFTA) is a development ticket that will boost intra-Africa trade and help reduce poverty across the continent when fully implemented, says Stephen Karingi, Director, Regional Integration and Trade Division of the Economic Commission for Africa. In a lecture at the Nordic African Institute on “Africa’s Trade Potential – An Interactive and Evidence-based “Deep Dive”, Mr. Karingi highlighted that the AfCFTA is a major driver of the African integration agenda through its promotion of trade in Africa.
While the continent had a low proportion in global trade, Africa’s trade composition was drawing more attention, especially heightened interest in sustainable development, climate change, and production for the future, Mr. Karingi said. “Africa has historically exported unprocessed and raw commodities with little value added, said Mr. Karingi noted that in 2022, primary commodities represented over 90% of goods exports in 25 African countries.
Africa has recorded a reduction in poverty. In 2010, 40% of African households lived on less than USD $1.90 per day, 13 years later that rate was below 34%. Besides, there has been a rise in incomes, development of skills and Africa’s agency globally was growing. But despite these positive developments, Africa has faced unique challenges stemming from the Covid-19 pandemic which highlighted its vulnerability due to its almost total dependence on the rest of the world for medical assistance. Furthermore, the global supply chain constraints of 2021 helped fuel inflation and the current Russia and Ukraine war pushed up the price of staple foods, reduced available quantities, and worsened an existing hunger crisis in parts of the continent.
Trade Finance Gap rises to $2.5 trillion USD - five key takeaways from ADB’s latest report on trade finance gaps, growth, and jobs (Trade Finance Global)
In its largest single-period increase since its inception, the Asian Development Bank’s (ADB) latest Trade Finance Gaps, Growth, and Jobs Survey indicates that the trade finance gap in 2022 rose to $2.5 trillion, up from $1.7 in 2020 and $1.5 trillion in 2018. The 2023 ADB report provides a comprehensive analysis of the current state of global trade finance, offering insights into the challenges and opportunities that lie ahead, particularly in the wake of a global pandemic that has disrupted trade flows and financial systems.
This latest report takes a global view, emphasising that the trade finance gap is a worldwide issue, suggesting that international cooperation is key to resolving these challenges, a point that resonates more strongly in the current geopolitical climate. It underscores the need for international cooperation to address the global trade finance gap and calls for a concerted effort from all stakeholders, including governments, financial institutions, and international organisations, to find sustainable solutions.
New WTO report underscores role of trade in meeting SDGs, bolstering economic recovery (WTO)
The WTO report analyses the trade performance of developing economies in 2022 and emphasizes the contribution of trade to achieving the five SDGs reviewed at the 2023 Forum:
On SDG 6, the report notes the essential role played by trade in services in supplying water for consumption and for the treatment of wastewater. It also underscores the importance of public-private partnerships to help developing economies improve water supply and sanitation services. The report also examines “indirect trade in water”, the trading of water-intensive products, particularly in the agricultural sector.
On SDG 7, the report emphasizes the role of international trade cooperation in facilitating trade and investment in affordable and clean energy products and services. Stepping up regional and multilateral cooperation will help address the trade barriers to adopting and diffusing low carbon and energy efficient technologies.
On SDG 9, the report stresses that industry innovation can be promoted through the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights, the WTO’s plurilateral Agreement on Government Procurement and initiatives such as Aid for Trade. These agreements and initiatives can help governments adopt and implement policies aimed at
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Naamsa releases research report on African growth and opportunity act (AGOA)
Ghana deposits Instrument of AU Convention on Cross-Border Cooperation
Counterfeit drug trade in West Africa surpasses combined oil and cocaine trafficking (report)
Russia to ship free grain to 6 African countries
India’s G20 focus on inclusivity helped earn respect of other nations: Deloitte
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Uganda-South Africa trade summit discusses value addition (The Independent Uganda)
Day one of the Uganda-South Africa Trade and Investment Summit organized by the Government of Uganda, MTN Group, Absa Bank Uganda and various South African owned business entities kicked off at Speke Resort Munyonyo. The discussions were focused on how to improve relations between the two countries with the aim of enhancing bilateral trade and ultimately economic growth.
“We foresee key opportunities to trade among each other reinforced by the Africa Free Continental Trade Area (AFCFTA) to achieve the vision of the Africa we want by 2063 and work together to exploit our rich African natural resources to take advantage of economic opportunities abounding within the African population which currently stands at a billion citizens and growing. Strengthening bilateral trade creates a solid basis for the AFCFTA,” Angela Thokozile Didiza, the Minister of Agriculture, Land Reform and Rural Development said.
“Key to enhanced trade is the need to establish enabling policies and the need for the business community to understand policies and laws in each country that support trade and investment including land tenure, licensing, tax laws and other compliance matters that companies must adhere to. We also need to ensure that there is supporting infrastructure, financing, and mechanisms for conflict resolution and mediation to address mistrust and problems that may arise,” said Angela Thokozile Didiza.
GDP records 0.6% growth in Q2, but loadshedding threatens gains (Engineering News)
South Africa’s gross domestic product (GDP) increased by 0.6% in the second quarter on a seasonally adjusted basis, which North West University Business School Professor Raymond Parsons says is welcoming news. He notes that GDP has extended its gains for a second consecutive quarter, demonstrating a noteworthy degree of resilience in the economy.
He adds that this has mainly been the outcome of more moderate Eskom loadshedding in June compared with April and May. Nonetheless, there remains a high degree of volatility in the growth dynamics, which is apparent in the wide divergence in growth forecasts for the second quarter, ranging from 0.1% to 0.7%.
“It is a reflection, not only of the difficulties in quantifying the biggest supply obstacles in the economy, but also of being a significant source of uncertainty in growth expectations,” Parsons states. For now, the balance of risks to growth prospects remains on the upside.
Kenyan facility ready for Tanzania gas delivery (The East African)
Kenya has completed the transaction for revamping the defunct state-owned Kenya Petroleum Refineries Ltd (KPRL), paving the way for a gas pipeline from Dar es Salaam to Mombasa. Davis Chirchir, the Kenyan Cabinet Secretary for Energy and Petroleum, said a consultant has completed a feasibility study that leads to the signing of a transnational agreement of the project.
“The defunct KPRL will now be under KPC (Kenya Pipeline Company) and the Mombasa-Dar es Salaam pipeline project, is key to feed into the facility to ensure maximum use,” said Mr Chirchir. “We hope once the 30,000 metric-tonne gas facility which is under construction in Changamwe is complete, the project will move to the next stage.”
In October last year, President Samia and President William Ruto agreed to speed up construction of a natural gas pipeline designed to increase trade and lower energy costs for both countries. The estimated cost of the 600-km pipeline is $1.1 billion.
Key mineral developments to boost one million jobs by 2025 (Pulse Uganda)
The government expects to increase jobs in the minerals sector by 63% (2.6 million) in FY2024/2025 from 1.6 million reported in 2017/2018, according to Peter Lokeris, the State Minister of minerals at the Ministry of Energy and Mineral Development.
He said the country’s discoveries of various mineral resources including copper, nickel, gold, chromite, iron ores, tin, tantalite, tungsten, limestone, marble, graphite, gemstones, and rare earth minerals led to an increase in Foreign Direct Investment in the sector from US$ 5 million in 2003 to over US$800 million in 2017.
Uganda Vision 2040 envisions a minerals sector that is a major driver of employment creation and GDP growth. “Planning and investing in mineral development should be undertaken to realise the sector’s vast potential and returns to the economy. These returns include direct revenue, job creation, and upward and downward linkages to other sectors of the economy including industrialisation, agriculture, and human capital development,” he said.
The mineral licenses have since increased from about 100 mineral licences in 2003 to 556 licences, including 249 exploration licences, eight retention licences, 48 mining Leases, and 76 location licences as of June 2023. This increase in licenses in the mineral sector is accompanied by a corresponding increase in income and revenue from the sector, Lokeris said.
Legal battle over Tanzania-Dubai port deal makes U-turn as Tanzania finally backs down (Pulse Uganda)
The Tanzanian government has abandoned a study of rules that would have benefited the contentious deal with DP World. On Tuesday, Attorney General Eliezer Feleshi said that the government has withdrawn proposed modifications to two laws controlling Tanzania’s natural resources that were up for debate in the National Assembly.
Parts 4 and 5 of the Bill proposed amendments to the Natural Wealth and Resources (Permanent Sovereignty) Act and the Natural Wealth Resources (Review and Re-negotiation of Unconscionable Terms) Act, both of 2017, to ensure that neither act could be used to “prejudice the performance of sea, dry, and lake ports in Tanzania.”
According to the plan, the changes will “enable Tanzania’s ports to operate at international standards level and attract more countries, more ships, and larger cargoes.”
Private sector to drive Nigeria’s economy says finance minister (ZAWYA)
Nigeria’s government will avoid taking on new debt and instead turn to the private sector to drive the economy, finance minister Wale Edun said while unveiling a sweeping agenda to boost growth.
The economy of Africa’s biggest oil producer last looked stable about a decade ago during the global commodity prices boom that sent oil prices soaring but the economy has since slowed, Edun said in a statement on Friday broadcast on television. At the time, the government had enough foreign exchange from oil exports of over over $80 billion to provide the funding for growth of the economy but now earns around $25 billion annually, he said.
“Clearly, the federal government is not in a position to borrow at this time. Rather, the emphasis has to be on creating a stable, macroeconomic environment.” Nigeria’s economic growth rate dropped to 2.51% in the second quarter from 3.54% in the same period last year.
Zambia - Tanzania border post upgrade worth Euros 2.6m begins (COMESA)
Trade flow along the Zambia – Tanzania corridor is set for better times once a Euros 2.638 million project to upgrade the Tunduma border post is completed. The project which is being implemented through a sub delegation agreement between COMESA and the government of Tanzania kicked off on 15 August 2023 when the site was handed over to the contractor.
The upgrades will also include installation, configuration and commissioning of ICT equipment such as desktops, laptops, printers and smart gates among others. This development is being done through COMESA with support from the European Union 11th Development Programme. The EU is funding the upgrading of selected corridors and border posts in the COMESA-EAC-SADC Tripartite bloc.
The COMESA-Tanzania sub-delegation Agreement is worth Euros 2.638 million and covers the construction of a market for small-scale cross-border traders at Majengo and various priority infrastructure interventions. All these are being implemented under the Trade Facilitation Programme (TFP).
African Climate Summit
New Research shows Africa needs Ten-Fold Increase in Funding for Climate Adaptation (Global Center on Adaptation)
New research from the Global Center on Adaptation released today shows that climate adaptation finance flows to Africa must increase up to tenfold to over US$100 billion per year by 2035 to build resilience against the growing impacts of climate change. Without such investment, it is estimated that the continent could lose out on as much as USD$6 trillion of economic benefits by 2035 as every $1 invested in adaptation has been shown to generate a return between USD$2 and USD$10.
Africa’s Nationally Determined Contributions (NDCs) currently estimate the continent requires US$52.7 billion a year for adaptation (or 2.5% of its GDP) but this new research reveals this is a vast underestimate as only half of the NDCs (28) calculate costs for adaptation.
Africa only received US$11.4 billion in adaptation finance in 2019-2020 and the increase in 2021-2022 is likely to be modest. At this rate, Africa will receive US$182 billion by 2035 for climate adaptation, less than one-tenth of the up to US$1.7 trillion by 2035 the new research estimates it needs.
Ten African countries (Egypt, Morocco, Kenya, Nigeria, Ethiopia, South Africa, Mozambique, Cote d’Ivoire, Tunisia and Ghana) currently receive over half of the continent’s adaptation finance whilst the ten most climate-vulnerable countries (Guinea-Bissau, Sierra Leone, South Sudan, Nigeria, Democratic Republic of Congo, Ethiopia, Eritrea, Central African Republic, Chad, Senegal) only receive 18% of Africa’s adaptation finance.
A roadmap for African resilience: addressing transboundary and cascading climate risks (SEI)
This roadmap proposes key actions towards realizing an ambition of the African Union Climate Change and Resilient Development Strategy and Action Plan (2022–2032) to “Enhance coordination between the Regional Economic Communities and Member States in addressing and managing transboundary and cascading climate risks”.
The authors of the roadmap recommend that the African Union Commission (AUC) and key partners develop an implementation plan to realize the commitment to “Enhance coordination between the regional economic communities and Member States in addressing and managing transboundary and cascading climate risks”, as established in the African Union Climate Change and Resilient Development Strategy and Action Plan (2022-2032).
Africa, which has suffered climate change impacts the most, must accelerate climate action through effective strategies to ensure a just transition, the Economic Commission for Africa (ECA) Acting Executive Secretary, Antonio Pedro has challenged leaders.
“The lack of the right global enabling environment and strong global action on climate would lead to dire consequences for all of us,” Mr. Pedro, said, in closing the three-day 11th Conference on Climate Change and Development in Africa (CCDA), which concluded with technical inputs for the 4-6 September Africa Climate Summit also being held in Nairobi, Kenya.
Reiterating that without effective strategies at country level and governments not taking responsibility for converting the immense potential of the continent into tangible benefits for its people, Mr. Pedro said Africa risks being left behind in a world undergoing an unjust transition.
2023 Africa Agriculture Status Report Released (AGRF)
The 2022 Africa Agriculture Status Report (AASR23) was launched today with the message that the repercussions of inaction are not just confined to hunger and malnutrition but extend to economic, social, and environmental domains, with the potential to undermine the progress made over the years. The new study titled “Empowering Africa’s Food Systems” underscores the need to address the challenges affecting African food systems considering the imminent threat posed by climate change, and the potential consequences of inaction.
While African governments are committed to tripling intra-African trade in agricultural commodities and services by 2025 as part of the 2014 Malabo Declaration, the aspiration is far-fetched as this kind of trade continues to dwindle from its peak in 2013 to less than 15 percent in 2022. However, if fully implemented, the African Continental Free Trade Area (AfCFTA) could raise household income by 9% by 2035 while lifting 50 million people out of extreme poverty. Africa could see foreign direct investment increase by between 111% and 159% under the AfCFTA.
The Report offers a deep dive into the underlying challenges that have historically held back the potential of the continent’s vast natural resources. Overall, despite progress in food production, processing, and distribution, significant challenges and failures persist leading to an alarmingly poor state of food and nutrition security across the continent. The Report unveils a multifaceted web of challenges that stretch from production to consumption. While daunting, these challenges provide a clear call for a concerted response from governments, the private sector, communities, and individuals alike.
Africa needs more coherent agricultural policies (Myjoyonline)
African ministers pledge enhanced protection of marine resources to spur growth (The Star)
Cross-border electricity trade key to universal access in Africa (ESI-Africa)
Emerging countries need women-led climate action (The Hindu)
Young People Demand Global Leaders Double Adaptation Finance by 2025 to Secure Africa’s Future (GCA)
Tenacity and innovation of Africa’s youth key to securing a green and sustainable future (AfDB)
Product Quality: ECOWAS Experts Convene in Lomé for Technical Regulation Across Four Key Sectors (Togo First)
Several ECOWAS experts-members of the ECOWAS Community Committee for Technical Regulation (ECOREG)- are hosting a meeting in Lomé. Started on September 4, the 3-day gathering aims to validate 14 proposed application regulations concerning four value chains: mango, cassava, textile and clothing, and Information and Communication Technologies (ICT).
According to Agence Togolesse de Presse, during the meeting, four Technical Harmonization Working Groups will deliberate over their respective value chains. For “Mango,” they will address technical specifications for both fresh mangoes and their derivatives. For “Cassava and its derivatives,” discussions will cover pesticide dosages and heavy metals in tubers, alongside quality inspection procedures and environmental standards. “Textiles and Clothing” and “ICT” sectors will also be reviewed, with the latter focusing especially on personal data protection and cybersecurity.
The ECOWAS Commission Accelerates AfCFTA’s Implementation in the ECOWAS Region (ECOWAS)
The Economic Community of West African States adopts a regional strategy to accelerate the implementation of the African Continental Free Trade Area Agreement in the ECOWAS region and leverage on opportunities for growth and prosperity in the region.
The 90th Session of the Economic Community of West African States (ECOWAS) Council of Ministers endorsed the ECOWAS Implementation Strategy for the African Continental Free Trade Area Agreement on the 6 and 7 July 2023, in Bissau, Guinea-Bissau. This step follows the Strategy’s adoption by ECOWAS Ministers of Trade and Industry (ECOMOTI) at the 3rd Ministerial meeting which was held on the 27th and 28th April, in Abidjan Cote d’Ivoire.
The ECOWAS Commission developed the ECOWAS Implementation Strategy for the AfCFTA to effectively integrate West African economies into the continental market, by building on the progress and success of regional integration in West Africa in order to better take advantage of the economic gains of a common African Market.
“The ECOWAS AfCFTA Strategy for the Implementation of the AfCFTA is an important milestone in the region’s efforts to fast-track the implementation of the AfCFTA Agreement” said Massandjé TOURE-LITSE, Commissioner for Economic Affairs and Agriculture at the ECOWAS Commission “The Commission is committed to working with Member States to ensure that the Community and its people and business can fully benefit from the African Market.
EAC ministers, businesses call for 40% increase in regional trade (The New Times)
East African Community (EAC) ministers and the business community have urged member-states and the bloc’s secretariat to commit to an increase of 40 per cent in regional trade over the next five years. This is one of the resolutions of the second East African Business and Investment Summit and Expo held in the Ugandan capital, Kampala.
The summit which closed on September 1 discussed successes and challenges facing trade and investments within the EAC and the African Continental Free Trade Area (AfCFTA), with the objective of identifying necessary policy reforms and leveraging opportunities for increased intra-African trade and investment.
Intra-EAC trade grew by 11.2 per cent to $10.9 billion in 2022 up from $9.8 billion the previous year. The region’s total trade increased by 13.4 per cent to $74.1 billion in the same period. According to a statement released following the summit, the EAC leaders and business people agreed to “prioritise harmonisation of trade and investment regulations and policies within the EAC to facilitate promotion of EAC as a single investment destination.”
Among their resolutions is the establishment of a fund for small and medium enterprises (SMEs) and start-ups to facilitate their access to finance.
China’s Multilateral Trade With BRICS and Africa Show Significant 7M 2023 Increases (Silk Road Briefing)
China’s imports and exports with other BRICS members expanded 19.1% year on year to ¥2.38 trillion (about US$330.62 billion) between January and July 2023, according to statistics from the Chinese General Administration of Customs.
China’s trade with Africa is also increasing and rose 7.4% during the same January-July 2023 period to ¥1.22 billion over the 2022 figure of ¥1.14 trillion yuan (@158.36 billion U.S. dollars). That growth continues from the previous year, which had increased by 14.8% over 2021. South Africa, a BRICS member is China’s largest trade partner in Africa, followed by Nigeria and Angola.
China is the Africa’s largest export destination. In the past seven months, the nation imported ¥426.65 billion worth of goods from Africa, including crude oil, iron ore and copper. In the same period, China’s imports of agricultural products from Africa increased 20% to reach ¥ 23.66 billion.
To compare, China’s bilateral trade with the United States during this period was US$324.9 billion, meaning that China’s BRICS trade has marginally overtaken its trade with the United States.
With an expanded BRICS from January 2024 to also include Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE, the collective BRICS will carry more trade clout in Beijing than Washington.
WTO Chief Criticizes Rich Nations for Embrace of Protectionism (Bloomberg BNN)
The head of the World Trade Organization sharply criticized western governments for embracing protectionist policies and shifting toward a power-based global trading system.
“Recent unilateral protectionist measures by some developed countries coupled with a more general reticence about the multilateral trading system and the WTO is seen as cynical and hypocritical by developing countries,” WTO Director-General Ngozi Okonjo-Iweala said Monday at a conference in Berlin. “The latter feel that rich countries who have benefited immensely from the multilateral trading system to develop their economies now no longer want to compete on a level playing field and would prefer instead to shift to a power-based rather than a rules-based system,” she said.
“The right response is to de-concentrate, diversify and deepen global trade by bringing more countries and communities from the margins to the mainstream,” she said. “Extending global production and trade networks to Africa, Latin America and Asia would make them simultaneously more resilient to localized shocks and more inclusive in socio-economic terms.”
UNCTAD’s creative economy work gains fresh momentum at G20 (UNCTAD)
G20 culture ministers met in the Indian city of Varanasi – also known as Kashi – culminating in the release of the “Kashi Cultural Pathway” on 26 August. This outcome document pledges G20 support to fortify cultural and creative industries, particularly in developing countries, drawing on expertise from international organizations including UNCTAD.
The G20 comprises the world’s largest economies, making up around 85% of the global GDP and over 75% of world trade. “We at UNCTAD attach great importance to cultural and creative industries because of their profound implications for trade and development and their transformative power across the economic, social and environmental dimensions of sustainable development,” UNCTAD Secretary-General Rebeca Grynspan says.
Amid the myriad challenges facing the world – from post-pandemic recovery to an expanding digital divide – the creative economy is ripe for innovation, investment and trade, promising a feasible development option especially for developing countries.
Quick links
EAC Partner States Agree On 11 Actions To Strengthen Food Safety
EA business community told to stop being passive to trade disruptions
Top 10 African countries with the largest foreign investments
SA benefits economically from BRICS grouping
BRICS’s impact on East Africa extends beyond mere economics with its surge in weapons trade
High growth, low volumes: Africa’s SCF problem
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SA component industry pledges R4.8bn in investments (Engineering News)
The South Africa component industry will invest R4.8-billion in the South African economy up to the end of next year, says National Association of Automotive Component and Allied Manufacturers (NAACAM) CEO Renai Moothilal.
Moothilal spoke at the NAACAM Show 2023, hosted in Tshwane last week. The show was held in partnership with the Tshwane Economic Development Agency.
The group – from different regions and segments of component manufacturing – consists of a mix of large multinational companies, domestic component manufacturers, as well as emerging black industrialists. Minister of Trade, Industry and Competition Ebrahim Patel welcomed the announcement as he addressed the event.
“Investment is the lifeblood of growth. So much of our preoccupation is to expand the economy, get more taxes and create more jobs, and generate revenue for essential public services. But all of that depends on investment – a commercial decision driven by an expectation of a return… I am pleased with the pledge here today, as this is a strong vote of confidence by component makers.”
Cabinet greenlights food price action plan: SA (SAnews)
Cabinet has directed the Economic Cluster to put in place an action plan on food prices, food security and access to food, Minister in the Presidency Khumbudzo Ntshavheni said. Briefing the media on Thursday, Ntshavheni said the Competition Commission has been monitoring essential food prices pursuant to price gouging concerns raised since the declaration of the State of Disaster in March 2020.
She said that the continuation of essential food price monitoring is motivated by the need to ensure affordable and accessible essential food products for consumers. At the briefing held in Pretoria, the Minister said that Cabinet has noted the Commission’s recommended measures including market inquiries to address structural features in the market that lead to high food prices and low levels of competition.
See the trade initiative aimed at bridging Kenya’s trade gap with China (Business Insider Africa)
In an effort to make Kenya a preferred entry point to the African market, the governments of Kenya and China have underlined their cooperation to strengthen bilateral economic ties. This is accomplished by utilizing the business-to-business and business-to-consumer connections at exhibitions to reach out to China’s two industrial regions, Chongqing and Sichuan.
The trade imbalance between the two countries increased to $3.62 billion (Sh526.2 billion) in 2022 from $3.51 billion (Sh510.2 billion) the year before, according to data from the Central Bank of Kenya. “This was the highest goods trade deficit between the pair since $3.68 billion (Sh534.9 billion) in 2017,” CBK says.
Irene Mumo, the State Department’s Deputy Director for Investment and Promotion, said such trade platforms give the nations an opportunity to expand their areas of mutual cooperation last Thursday at the opening of the Chongqing and Sichuan Export Commodity exhibition in Nairobi. “This includes areas of manufacturing, trade, technology, and other key sectors targeted under the bottom-up economic model,” Mumo said.
Ghana: Country set for industrial hub: Infrastructure ready – Prof Dodoo (BusinessGhana)
The Director-General of the Ghana Standards Authority (GSA), Professor Alex Dodoo, has called for stronger coordination on the part of all ministries and regulatory bodies to work harder and make the country a new manufacturing hub. He explained that the approval of the National Quality Policy (NQP) and passage of the Standards Authority Act, 2022 (Act 1076) were crucial interventions that would prepare local companies and send the right signals to the rest of the world that the country was open for large-scale investments in the production sector.
“We have been able to develop the companies, human resource, standards and NQP; what we need now is coordination for the new industrialisation hub to happen. “So yes, Ghana will become the unequivocal next hub of global manufacturing because we have the ingredients and infrastructure to support the agenda,” Prof. Dodoo said.
At the maiden Daily Graphic-GSA-ISO Breakfast Summit in Accra last Friday, the Director-General of GSA maintained that the country had also taken deliberate steps to develop manufacturers (industries), human resources and standards to support the industrialisation drive. It was on the theme: “Standardisation and industrialisation: Could Ghana be the new hub for global manufacturing?”
The Secretary-General of the African Organisation for Standardisation (ARSO), Dr Hermogene Nsengimana, challenged Ghanaians to leverage standards to boost industrialisation in the country. He said the country and its manufacturers must build knowledge on standards because they were the cheapest way of acquiring skills required for industrialisation. “We must also take value addition seriously because it is a component embedded in standardisation”. “Standards inspire healthy competition among manufacturers and producers and also bring out the best of innovation,” Dr Nsengimana added.
Africa Fintech Summit: over 200 leading organisations to convene at Lusaka, Zambia (Technext)
The stage is set for the largest gathering of fintech stakeholders from around Africa and the globe as the Africa Fintech Summit prepares for its 10th edition. The summit, renowned for fostering meaningful conversations, partnerships and other ecosystem-enabling engagements is scheduled to take place from November 2-3, 2023, at Ciela Resort and Spa in Lusaka, Zambia.
The Africa Fintech Summit has become a platform where innovators, entrepreneurs, regulators, investors, and other influential players convene to chart the course for Africa’s fintech landscape. With the fintech sector on the continent witnessing exponential growth and transformation, this year’s summit aims to accelerate the pace of innovation, foster partnerships, and address critical challenges faced by the industry.
Africa Climate Summit
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Investment in climate change resilient infrastructure emphasised (SAnews)
Forestry, Fisheries and the Environment Minister, Barbara Creecy, has called on leaders on the continent to urgently implement measures to improve the resilience of Africa’s infrastructure investments against the impacts of climate change.
“If the impacts of climate change are not taken into account now, there is a considerable risk that the current, and potentially the next generation of infrastructure in Africa will be locked into designs that could be inadequate for the future climate and costly or impossible to modify later,” Creecy said in Nairobi, Kenya.
Addressing the Africa Climate Summit on Monday, Creecy said climate change impacts will be genuinely felt during the life span of the planned and future infrastructure within the coming decade.
“Planning new infrastructure for climate resilience and adapting existing infrastructure to reduce risks should be a priority as there is a high probability that climate change will offset or reduce the economic and developmental benefits of these investments.”
“Developed countries have not met the US$100 billion per year mobilization goal by 2020 and have indicated that this goal may potentially be met later this year (2023). The goal of doubling adaptation finance from 2019 levels by 2025 is an undertaking in paper only.
“With an estimated annual infrastructure financing requirement in the range from US$130 - 170 billion according to the African Development Bank, implementing urgent measures to improve the resilience of Africa’s infrastructure investments must become the main occupation for us as decision-makers,” the Minister said.
She said African countries need a new suite of financing instruments, with a set of favourable terms and conditions that are not merely debt generators.
Calls for Change In Africa’s Narrative as Climate Summit Kicks Off in Kenya (Tuko.co.ke)
The One Campaign is urging all leaders to use this pivotal moment to unite around a shared pan-African agenda–one that brings justice and prosperity. African nations are among the most vulnerable to climate change effects and have significant natural assets that could provide global climate solutions. Despite this, the continent receives a disproportionately small amount of global climate finance compared to other regions.
Serah Makka, Director for Africa at The ONE Campaign, said: “African countries possess the tools, talent, and renewable resources to fuel their own growth and be at the vanguard of efforts to tackle climate change, poverty, and inequality everywhere. But they are being blocked by a broken global financial system that denies them access to the affordable finance needed to unleash this potential.
“No country must choose between improving the lives of their people and protecting the planet. If the rest of the world truly gets behind Africa, they can help unleash a green economic revolution that will drive growth and prosperity across the continent and help the whole world to rise to the biggest shared challenges we face.”
Africa and the Caribbean share deep historical and people-to-people ties. Indeed, the African Union has identified the Caribbean as Africa’s sixth region. The shared experience of the climate emergency has created another commonality, and one that presents an existential threat to both regions, particularly for small states.
African governments, similar to their Caribbean counterparts, have limited capacity to respond to the climate crisis due to debt distress and economic shocks, necessitating urgent action including debt relief and increased liquidity.
Building on Bridgetown 2.0 and the Paris Pact, the Africa Climate Summit (ACS) in September can help advance a transformational agenda to reset and reshape trade and investment relationships to build climate resilience. However, we need to move swiftly from high-level policy discourse to tangible actions, where it matters on the ground. The private sector must be a central driver of this transformation, supported by appropriate policy frameworks. Whilst commitments at the highest levels must be secured, direct business-to-business engagement is imperative, particularly in deepening South--South trade and investment relationships.
There have been a number of recent high-level initiatives aimed at strengthening trade and investment ties between Africa and the Caribbean, such as the AfriCaribbean Trade and Investment Forum. The ACS will primarily focus on driving green growth and climate finance solutions for Africa and the world. The expected outcomes, including those outlined in the Nairobi Declaration, will enable African countries to develop detailed plans and secure investments to support green growth, not only on the continent but also globally, as Africa plays its part in supporting decarbonisation efforts elsewhere.
UAE Carbon Alliance pledges to purchase US$450 million in African carbon credits by 2030 (Emirates News Agency)
A battery swap scheme is turning Africa’s roads electric (CNN)
These African countries are leading the green climate transformation (ONE Campaign)
Africa must swiftly harness its rich mineral and natural resources to drive a clean energy revolution and accelerate sustainable development amidst the current climate crisis, the Acting Executive Secretary of the Economic Commission for Africa (ECA), Antonio Pedro, has urged.
“Africa is a solutions powerhouse for saving the climate, Mr. Antonio Pedro, said at the opening of the 11th Conference on Climate Change and Development in Africa (CCDA) in Nairobi, Kenya, ahead of the inaugural Africa Climate Summit to take place from 4-6 September themed: Driving Green Growth & Climate Finance Solutions for Africa and the World.
Already, multiple low-carbon hydrogen projects are in development in Egypt, Mauritania, Morocco, Namibia, and South Africa. Africa is also rich in cobalt, manganese, platinum, lithium, and copper – critical minerals for producing batteries and other green transition products. “To mobilize the necessary funding, a paradigm shift is necessary,” said Mr. Pedro, emphasizing that Africa’s renewable and non-renewable resources were assets for mobilizing climate finance and investment.
Mr. Pedro said that using nature-based sequestration alone, African countries could provide up to 30% of the world’s sequestration needs. A key challenge, however, was in “effectively and sustainably harnessing Africa’s abundant resources for the benefit of its people.”
Africa Agriculture Status Report 2023 to be unveiled at AGRF Summit (Farmers Review Africa)
One of the highlights of the 13th AGRF (Africa Green Revolution Forum) Summit in Dar es Salaam, Tanzania, will be the launch of the 2023 Africa Agriculture Status Report (AASR23). The report is being released at a time when the continent’s food systems are dealing with a number of critical issues brought by increased food demand amidst production difficulties due to climate change. The report will delve into strategies to support African countries in transforming their food systems, based on a keen assessment of past and current food system failures.
The AGRF Summit, which takes place from September 5th-8th, is an annual gathering that brings together heads of states and governments, agriculture ministers, members of the civil society, private sector leaders, scientists and farmers in discussions meant to define the future of Africa’s food systems. Under the theme, Empowering Food Systems for the Future, this year’s AGRF Summit will explore the pathways and actions needed to steer the continent towards food systems that deliver sufficient and nutritious food, protect the environment and create sustainable jobs. The welfare of nearly 1.5 billion Africans and the future of their food systems underscores the urgency for immediate, well-informed decision-making.
It is estimated that Africa spent about $50 billion as its net import bill for all food products in 2021, with $18 billion net import bill for sub-Saharan Africa. The 2022 Africa Agriculture Status Report highlighted the possibility of staple food imports growing by 50-60 percent, or even doubling, over the next decade.
“To achieve a true transformation of food systems in Africa, there is a growing recognition that we need to think about food systems differently, taking into account the true values and full costs involved in growing, distributing, and consuming food,” the AASR22 noted.
Youth leaders, entrepreneurs and policymakers presented the Africa Youth Climate Assembly Declaration to Kenya’s President, William Ruto, and African Development Bank Group President Dr Akinwumi Adesina. The Declaration, which was the culmination of the Africa Youth Climate Assembly held in Nairobi from 1-3 September, advocates for the accelerated establishment of a Global Green Bank and a New Global Financial Pact, aiming to prioritise young people and their interests in climate financing. The delegates also called for the establishment of a UN Youth office to be based in Africa, the continent with the largest youth population on the planet.
Adesina echoed similar sentiments, underscoring the critical nature of youth investment in fostering growth and stability on the continent. “The biggest risk in this continent is not investing in the youth,” Adesina said, adding that, “The youth need investment, not empowerment.” To illustrate this point, Adesina said the African Development set up the Jobs for Youth strategy to provide 25 million jobs. “So far, we have developed 15 million jobs: ten million in the formal sector and five million in the informal sector.”
15th BRICS Summit heralds new chapter for the group (SAnews)
The 15th BRICS Summit held at the Sandton Convention Centre during August was a success that ‘heralded a new chapter’ for the group. This is according to President Cyril Ramaphosa who addressed the nation on Sunday evening. “It was a historic Summit that heralded a new chapter for BRICS.
The President honed in on key decisions and outcomes that were taken during the summit, including the call for a comprehensive reform of the United Nations, including its Security Council.
On the second key outcome of the summit – which was to expand BRICS membership invitations to Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates – President Ramaphosa said: “Through an expanded BRICS, we will be able to better align the voices of those countries that seek a fairer global governance, financial, investment and trading system based on clear rules that apply equally to all countries.
“An expanded BRICS also means that we will be able to export more of our products to major markets and, as a result, we will be able to produce more and create more jobs. While an expanded BRICS will be an important champion for the Global South, South Africa stands to benefit from its relationship with these countries.”
UNCTAD helps countries measure South-South cooperation (UNCTAD)
UNCTAD and its partners have kicked off a three-year global project to help developing countries use a common framework to measure and give more visibility to South-South cooperation. The project’s first event, organized with Brazil from 11 to 13 July, brought together representatives from 16 countries across Africa, Asia and Latin America. Participants also included economists, statisticians and development experts from over 10 international organizations, including four UN Regional Commissions.
South-South cooperation – when developing countries pool resources or share knowledge, skills and expertise – is a powerful tool that can take many forms. But historically global development discussions have leaned exclusively on data from cooperation that also involves developed countries or multilateral organizations – or both. Without reliable data on South-South cooperation, the picture of international development cooperation remains incomplete.
In March 2022, the UN Statistical Commission introduced a new SDG indicator (17.3.1) to measure “additional financial resources mobilized for developing countries from multiple sources.” It also welcomed a voluntary common framework designed by developing countries to measure South-South cooperation and provide data for the new indicator. “Now we have a framework that is made by the South for the South,” Brazilian Ambassador Luiza Lopes of the Brazilian Cooperation Agency said.
African Union Likely to become 21st member of G20 (The New Indian Express)
The African Union (AU) is likely to become a member of the Group of 20 (G20) largest economies with India, which holds the G20 chair, proposing its inclusion ahead of the September 9-10 summit. With the AU’s inclusion, the bloc will become G21. Supporting the AU’s inclusion, Prime Minister Narendra Modi said, “No plan for the future of the planet can be successful without the representation and recognition of all voices”.
“Africa is a top priority for us even within the G20. One of the first things we did during our G20 Presidency was to hold the ‘Voice of the Global South’ summit, which had enthusiastic participation from Africa,” Modi said. “There is a need to come out of a purely utilitarian worldview and embrace a Sarva Jana Hitaaya, Sarva Jana Sukhaaya (for the welfare of all, for the happiness of all) model,” he added.
However, not everyone in AU is excited about India’s push to get them to G20. “Africa is a large continent and the challenges, economy and communities are very diverse. In that context, we feel that this inclusion in the G20 would not translate into anything for us in the literal sense. The Voice of the Global South must be heard but the inclusion in G20 would not help in addressing the concerns. We are grateful for India to consider including us though,” said a representative of an African country.
Black Sea Grain Initiative safest, most cost-effective option for the world (Anadolu Ajansı)
Following Russia’s withdrawal from the Black Sea grain deal, which was implemented with the UN’s mediation and Turkey’s contribution, efforts to revive the deal continue.
At a joint news conference with his Russian counterpart Sergey Lavrov in Moscow last week, Turkish Foreign Minister Hakan Fidan said that with Türkiye’s contributions, the UN has prepared a new package of proposals that would provide a conducive environment for reviving the initiative. The key components of the proposal package include the integration of a subsidiary of the Russian Agricultural Bank (Rosselkhozbank) into the SWIFT system and the release of frozen assets of Russian fertilizer companies in Europe.
While Türkiye coordinates with the UN to revive the Black Sea Grain Initiative, other formulas put forward as alternatives to the agreement pose security and cost issues. Russia has expressed its concern that the grain transported through the corridor established under the agreement went to developed countries. Moscow is now proposing the shipment of 1 million tons of grain to Türkiye with the condition that it is processed in Türkiye under Qatar’s financial sponsorship before being sent to the least-developed countries.
However, compared to the operational volume of the Black Sea Grain Initiative, which allows about 33 million tons of grain to be shipped to the world in a year, the 1 million tons of grain offered by Russia is far below the needs.
DDG Paugam: Trade can help us respond to food security, sustainable development challenges (WTO)
The WTO’s 13th Ministerial Conference (MC13), to be held in Abu Dhabi in February 2024, will provide a unique opportunity to ensure that trade contributes to strengthening global food security, said Deputy Director-General Jean-Marie Paugam on 4 September. Speaking at the International Conference on Agricultural Trade Policy in Beijing, DDG Paugam noted MC13 can be a defining moment for a more food secure and sustainable future and urged WTO members to work together to overcome the stalemate in agriculture negotiations.
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Private sector investment in energy to lift employment, economic growth (Engineering News)
Solar power investment will reduce loadshedding and increase employment growth in 2024, and jobs are being created on the back of a growing resilience among businesses against the negative impacts of loadshedding, says assurance, advisory and tax services firm PwC South Africa in its eighth ‘South Africa Economic Outlook’ report.
Statistics South Africa (Stats SA) reported in August, that total formal and informal employment increased by 154 000, or 1%, from the first to the second quarter of 2023. Total jobs were also 784 000, or 5%, higher compared to the second quarter of 2022. “This substantial increase in employment contrasts with weak economic growth owing to, among other factors, electricity loadshedding and supply chain disruptions. The strong increase in jobs over the past year is encouraging and reflects a growing resilience on the part of private businesses against the negative impacts of electricity outages,” PwC South Africa says.
Government seeks to engage the EU on the impact of its emissions tax regime – Deputy Minister Gina (the dtic)
The Deputy Minister of Trade, Industry and Competition (the dtic) Ms Nomalungelo Gina, says South Africa will continue to engage its European counterparts on the impact of the European Union’s (EU) Carbon Border Adjustment Mechanism regulation on local businesses exporting to the EU. This regulation imposes tax on exports to EU countries, for products in emissions-intensive sectors deemed at greater risk of carbon leakage. The goal is to reduce greehouse gases emissions by 55% by 2030. The sectors include steel, aluminium, fertilisers, and electricity.
Gina was speaking at the launch of Bingelela Alloys – a Black Economic Empowerment partner to Australia’s alluminiun smeltering company, South 32. Bingelela Alloys was established in 2018 to produce alluminium products such as wheels, rims, foils among others.
The Deputy Minister highlighted that South Africa does take seriously its obligation in fighting climate change and is committed to making efforts necessary to build towards low carbon economy. But adds that the implementation of some measures may affect local businesses negatively.
The Minister of Trade, Industry, and Competition, Mr Ebrahim Patel, has welcomed investment pledges worth more than R4.6 billion made by sixteen automotive component manufacturers and suppliers at a conference hosted by the National Association of Automotive Component and Allied Manufacturers (NAACAM) in Pretoria yesterday. This investment, which Minister Patel described as a “strong vote of confidence in the South African Economy,” will support more than 10 000 jobs.
The companies that pledged include Shatterprufe, Atlantis Foundries, South African Tyre Manufacturers Conference, CRH Africa Automotive, John Moffat Prolock, IBO Group, and Auto Industrial Group.
“I am particularly pleased to be part of this major announcement today because investment is the lifeblood of every economy. It contributes to expanding the economy, creating jobs, and providing taxes that the government can use to build hospitals, schools, universities, and many other positive things that contribute to improving the lives of our people. This is a strong vote of confidence in the South African economy by the automotive components makers,” said Minister Patel.
Namibia builds on N$100b BRICS trade (New Era)
Namibia’s trade with BRICS countries during 2022 stood at a mammoth N$97 billion. This figure was shared yesterday by head of research at High Economic Intelligence, Salomo Hei, who said Namibia’s trade with BRICS is higher than any other economic bloc.
Addressing a breakfast session hosted by Debmarine Namibia, he noted that Namibia’s total trade with various economic blocs in 2022, including the Southern African Customs Union (SACU) which amounted to N$85.3 billion, was combined with trade with the United States of America (USA), UK and the Euro area amounting to N$43.1 billion.
Namibia’s trade with new BRICS members, who are expected to join in January 2024, amounted to N$12.5 billion in 2022. BRICS currently consists of Brazil, Russia, India, China and South Africa. Formally launched in 2009, BRICS now accounts for 23% of global GDP and 42% of the world’s population. At the recent BRICS meeting in South Africa, countries such as Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates were invited to become full members of BRICS.
Kenya’s African payment platform bid under review (The East African)
Cairo-headquartered African Export-Import Bank (Afreximbank) has started reviewing Kenya’s bid to host a Pan-African settlement house for intra-African trade deals, a top official said in Nairobi Wednesday. Denys Denya, Afreximbank’s Executive Vice President for Finance, Administration and Banking Services, said the trade financier’s top decision-making organ has taken up Kenya’s application.
Central Bank of Kenya Governor Kamau Thugge disclosed in July Nairobi’s proposal to host the Pan-African payment and settlement system (Papss) which facilitates intra-African payments in different national currencies on the continent.
“The Kenyan government has decided to support the rollout of Papss. The President of Kenya William Ruto is actually championing this,” Mr Denya told reporters on the sidelines of a roadshow ahead of the third Intra-African Trade Fair (IATF2023) to be held in Cairo between November 9 and 15. “There’s a governance council that is considering that proposal. The decision will be made shortly and communicated.”
DRC nationals to visit Kenya visa free (The East African)
Nationals of the Democratic Republic of Congo will from now visit Kenya without a visa, Nairobi announced on Friday. The new policy, Kenya says is part of continuing legal shift to accommodate the DRC’s admission into the East African Community.
A noticed issued last week to all diplomatic missions abroad as well as Kenya’s regional administrative heads had alerted officials of the imminent change in policy. It said the visa waiver will be effective from September 01.
“The government of Kenya has removed Democratic Republic of Congo from Category 2 to category 1 of the visa regulations in compliance with the East Africa Community Regulations of free movement of persons within the member states,” said the circular dated August 25. “In this regard, Kenya has waived visa requirements for all nationals of the Democratic Republic of Congo effective September 1, 2023.”
eGAZ, Mastercard to digitalise Zanzibar economy (Tanzania Daily News)
Mastercard has collaborated with the Zanzibar’s e-Government Agency (eGAZ) to support and accelerate the isles ambitious digital transformation journey. This will allow different sectors across Zanzibar such as tourism to digitise payments which will significantly contribute to economic growth.
According to the press release, the signing of the Memorandum of Understanding (MoU) took place parallel with the launch of the Zanzibar Digital Government Strategy for 2023-2027, led by President of Zanzibar Hussein Mwinyi in Unguja on Tuesday. Mastercard East Africa Country Manager Shehryar Ali said that the agreement is the first MoU signing by them aligned with Zanzibar’s digital transformation goals laid out in their digital economy blueprint and roadmap.
“The strategy’s main objective is Zanzibar’s transformation into a strong digital economy which will secure digital systems, drive innovative information, communication and technology solutions and develop training for digital governance, ultimately reshaping public services,” he said. Under the three-year collaboration, Mastercard will provide technical assistance and expertise to support the Zanzibar government’s efforts.
With leadership and determination, Africa can achieve the SDGs (Africa Renewal)
Antonio Pedro, the acting executive secretary of the United Nations Economic Commission for Africa, recently discussed Africa’s development with Africa Renewal’s Kingsley Ighobor.
We could liken AfCFTA to Africa’s Marshall Plan. Why? It aims to strengthen the business fundamentals of the continent. Given the small size of our individual economies, we need to leverage a multiplier effect, creating a single, integrated market to attract investments. But, to achieve a multiplier effect, we need to address many challenges such as our infrastructural shortcomings. The Programme for Infrastructure Development in Africa aims to address some of those.
We also need to address the legal and regulatory misalignments that are barriers to trade. At the African Union Commission Summit last February, the Assembly adopted three important protocols related to competition, investment and intellectual property rights.
AU intensifies efforts foster growth start ventures Africa (African Union)
The African Union led by the Department of Economic Development, Trade, Tourism,, Industry, and Minerals(ETTIM) is set to host the second edition of the annual African Union Micro Small and Medium Enterprises (MSME) Forum from the 4th -8th September 2023 at the AU Head quarter in Addis Ababa, Ethiopia. The forum will focus on “Start-up Acts: An Instrument to Foster Development and Innovation in Africa,” delving on the importance of policies that serve as incentives for young people to start a venture, investors to put their money into promising companies, and other ecosystem actors to lend their support in start-up enterprises.
Tunisia and Senegal are leading on the continent on the adoption of Start-up Acts in 2018 and 2019 respectively. These policies are part of broader government strategies to position their countries as innovation hubs by leveraging an emerging tech ecosystem to improve economic development. Such efforts have continued to demonstrate the pivotal role of MSMEs in Africa’s industrialization and economic growth.
MSMEs are the backbone of the African economy, accounting for 80-90% of all businesses and providing employment to around 85% of the continent’s workforce. They are also the driving force behind innovation, playing a significant role in the development of new technologies, products, and services.
This year’s Bio Africa Convention will be held in Durban, Republic of South Africa, on the 3rd to 6th September 2023. Bio Africa Convention is an annual event that facilitates an enriching and collaborative platform for exchange of groundbreaking ideas and opportunities in the biotechnology industry and innovations pertaining to health, energy, agriculture and entrepreneurial sectors. The sixth annual BIO Africa Convention will focus on food security, sustainability and biotech innovation. The theme for BIO Africa Convention, 2023 is Re-imagining Biotechnology Innovation for Africa’s Development and Security. This aligns well with the Support to Industrialisation and Productive Sectors (SIPS) Programme initiatives.
The primary objective of the BIO Africa Convention is to get Africa talking about biotechnology developments and to address challenges ranging from food security and medicine to vaccine manufacturing. Regionally, the Support to Industrialization and Productive Sector (SIPS) Programme, seeks to accelerate the SADC regional industrialization agenda by supporting regional value chain development in the agro-processing and pharmaceutical value chains.
Trade: ECOWAS Quality Experts Gather in Lomé for Key Meeting (Togo First)
The ECOWAS Community Committee for Conformity Assessment (ECOCONF) is currently meeting in Lomé to examine mechanisms to facilitate the free movement of goods within the community.
“We will be working on the rules for mandating, but also on the regional recognition of the various conformity assessment bodies,” said Olga Kouassi, Director of the ECOCONF’s Standards and Audit Office, and the Committee’s representative in Ivory Coast. ”For this regional market to be assessed and inspected at the company level in each country, it is essential that inspection rules are harmonized, enabling each country to recognize certificates issued,” she added.
The meeting opened on August 31 and on the occasion, the Togolese and Beninese winners of the second edition of the ECOWAS Quality Award were unveiled. The recipients include École Supérieure des Affaires (ESA), Cabinet Audit Expertise Comptable, both carried by Dr. Charles Birregah, from Togo, and Best Expert Conseil, from Benin, reports the Savoir News agency.
IGAD Members to Adopt Single Electronic Visa System (RegionWeek)
The Intergovernmental Authority on Development (IGAD) is working towards establishing a single visa system to deepen regional integration through free movement, which comprises eight countries in East Africa.
The objective of the single visa system is to reduce administrative burdens and promote the seamless movement of tourists and business travelers across the IGAD region, the IGAD Executive Secretary Dr. Workneh Gebeyehu mentioned at a consultation meeting held on August 28, in Djibouti. Dr. Gebeyehu also mentioned that the unified electronic visa is expected to facilitate the movement of people and goods across the IGAD region, which comprises eight countries in East Africa.
Industry bodies unpack importance of continued Agoa access for local automotive industry (Engineering News)
As the African Growth and Opportunity Act (Agoa) comes up for potential renewal before its expiry in 2025, naamsa | The Automotive Business Council and the Automotive Industry Export Council (AIEC) have released a research report motivating for an extension to the trade preference programme.
naamsa says in the report that Agoa has become a powerful symbol of the commitment the US and Africa have made to one another’s prosperity. The industry body believes Agoa has served as a bedrock of trade relations between the two regions and helped to support regional integration, particularly the development of regional value chains – through Agoa’s rules permitting cumulation among programme beneficiaries.
South Africa was the continent’s largest beneficiary of Agoa in 2022, having exported R178-billion worth of goods to the US, while imports amounted to R134-billion. In particular, South Africa has accounted for 99% of the African automotive sector’s exports to the US since Agoa’s inception. The South African automotive industry, for one, has been a major beneficiary of Agoa, with substantial two-way automotive trade having taken place between the two countries.
Africa-Singapore Economic Relations Expand With Bilateral Trade Growth At 15% Per Annum (Africa.com)
Economic relations between Singapore and Africa continue to expand, as bilateral trade in goods grew by around 15% per annum between 2019 to 2022, reaching US$14.5 billion in 2022. Singapore companies’ investments in the African continent cumulatively reached US$23.7 billion as at 2021.
As testament to the robust interest to participate in Africa’s growth opportunities, five agreements were inked on Thursday at the 7th edition of the Africa Singapore Business Forum (ASBF) 2023 on the theme “Driving Africa’s Growth through Digitalisation, Manufacturing and Sustainability”, organised by Enterprise Singapore (EnterpriseSG). These agreements span manufacturing, digitalisation and technology, sustainable development, transport and logistics sectors.
To facilitate further growing ties between Singapore and Africa, the Kenya-Singapore Bilateral Investment Treaty was also ratified by both countries and formally entered into force on 20 August 2023. The Treaty will promote greater investment flows between Singapore and Kenya by protecting the interests of both Singapore and Kenyan investors. The Treaty provides certainty and signals the commitment of both governments to create favourable conditions for business to thrive.
Africa’s intensifying heatwaves show urgent need for finance (China Dialogue)
Delivering adequate climate finance and an effective ‘loss and damage’ fund are central to this year’s COP28 climate negotiations
Under climate change, Africa’s extreme weather has become more intense, frequent and longer lasting. In East Africa, for instance, extreme temperatures have increased along with dry conditions, WMO programme manager Dr Ernest Afiesimama tells China Dialogue. Other weather extremes, such as floods and droughts, have also become more common in the region.
In 2009, developed countries pledged to provide developing countries with $100 billion a year in climate finance by 2020. But they only delivered $83.3 billion in that year, according to the OECD. Climate finance has been a contentious matter for years, damaging trust and cooperation at COP negotiations. The OECD believes the $100 billion per year goal could finally be met this year.
Most African countries are not on track to meet their Paris commitments to cut emissions, largely because they made ambitious pledges on the principle that development partners would help finance them. “The channelling of resources has proven so far inadequate in the face of the needs,” says Jean-Paul Adam, former director of technology, climate change and natural resources at the UN Economic Commission for Africa (UNECA). Another related issue concerns “loss and damage” funding which has a different meaning to climate finance in UN climate negotiations.
While Africa waits for the climate finance it has been promised, its governments are far from passive actors. From 4–8 September, African leaders and representatives from finance, business and civil society are gathering in Nairobi for the Africa Climate Action Summit. The meeting includes a number of high-level discussions on adaptation, climate finance, energy and more, concluding with a Nairobi Declaration signed by African heads of state.
Resource-rich countries facing a double transition (Engineering News)
Resource-rich countries face a double transition – the transition in their energy supplies and the transition in their mining sectors, German Institute for International and Security Affairs senior associate Melanie Müller has said.
The growing drive to confront the issues of climate change and other environmental dilemmas was gaining traction, manifesting as a ‘green energy transition’, denoting a pivotal shift from energy sources reliant on fossil fuels to those harnessed from renewable origins such as solar and wind, she pointed out this week during a webinar hosted by The South African Institute of International Affairs (SAIIA). However, to orchestrate this sweeping global transformation, a diverse array of resources, particularly minerals such as copper, lithium and cobalt, have become essential. Notably, the bulk of these resources are chiefly procured from regions situated in the global south.
SAIIA has launched a special issue of the South African Journal for International Affairs (SAJIA) titled, ‘The energy transition and green mineral value chains: Challenges and opportunities for Africa and Latin America’.
IATA payment service for travel agents launched in five more African countries (Engineering News)
The International Air Transport Association (IATA) has announced that its EasyPay service was launched in Cameroon, Chad, Congo, Gabon and Mauritius, with effect from Wednesday (August 30). EasyPay is a secure travel agency payments solution available to travel agencies accredited by IATA and to airlines that participate in its Billing Settlement Plan (BSP). This takes the number of African countries in which EasyPay is available to 27. The addition of the latest five countries is intended to both improve IATA’s financial services and support the objectives of its Focus Africa initiative (which aims to maximise the contribution of aviation to African development).
“IATA EasyPay is an optional pay-as-you-go solution for travel agents, a simpler and more secure method for transacting with airlines through the BSP,” explained the association. “IATA EasyPay is a closed-loop electronic payment solution that is voluntary, secure, fast, flexible, and free of charge. It provides more flexibility and choice for accredited travel agents to manage their business challenges.”
Standards cooperation, quality infrastructure key to boosting value chains – DDG Paugam (WTO)
“Investment in quality infrastructure and ensuring interoperability of product standards are essential to fostering resilience in global supply chains,” Deputy Director-General Jean-Marie Paugam told an international gathering on supply chains and quality infrastructure in Chengdu, China on 1 September. DDG Paugam emphasized, during two subsequent events, the indispensability of international cooperation and the pivotal role of the WTO in aiding these efforts.
“Quality infrastructure supports the resilience of world trade by building and maintaining trust across value chains,” DDG Paugam said at the opening of the 5th China Quality Conference, which centered on the theme of cooperation in economic recovery. “Investing in efficient supply chains is one of the important tools to support resilience,” he added. Quality infrastructure is central because it fosters trust among trading partners and facilitates private-sector collaboration.
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SARS records R16 billion trade boost for South Africa (BusinessTech)
South Africa saw a preliminary trade balance surplus of R16.0 billion in July 2023, data from the South African Revenue Service (SARS) shows.
SARS said that this surplus was due to exports of R174.0 billion and imports of R158.0 billion, including trade with Botswana, Eswatini, Lesotho and Namibia (BELN). However, the year-to-date preliminary trade balance surplus of R19.5 billion is a massive decline from the R154.6 billion trade balance surplus for the same period in 2022.
According to SARS, China was South Africa’s biggest trading partner in exports and imports.
“The current season poses a unique challenge for the Chinese avocado market” (FreshPlaza)
In a significant development for the global avocado trade, South African avocado growers are about to penetrate the lucrative Chinese market. The journey to secure this market access has been marked by orchard inspections and regulatory approvals earlier in Spring this year.
As early as March, the news emerged that South African avocados were on the brink of being granted access to the Chinese market. In April, Chinese authorities conducted thorough on-the-ground inspections of orchards and farms, including at a few key players like Halls.
The Chinese avocado market is not a mature market yet. “The current season poses a unique challenge for the Chinese avocado market”, says Lifan: “Primarily due to an influx of both Kenyan and Peruvian avocados. This unprecedented supply has caused market prices to fluctuate, impacting not only established players like South Africa but also newer entrants like Kenya. The differences between Kenyan and Peruvian avocados, coupled with various supply chain issues, have influenced market dynamics, which are still very volatile. Prices have come down, which is making it more attractive for smaller traders on the market to add avocadoes to their product portfolio. This will eventually only grow the size of the market”.
Steel industry vital for South Africa’s industrialisation, Majola says (Engineering News)
Trade, Industry and Competition Deputy Minister Fikile Majola has stressed the impact of the local steel industry and its importance to South Africa’s industrialisation, and the challenges that the sector is facing from local and global pressures, emphasising the need to build an “inclusive sector” that contributes to the economy.
“Steel is one of the most important materials in the world. It is present in most aspects of the economy, from transportation and other infrastructure to more simple aspects like containers. Steel is used in the production of colossal structures, as well as small components for precision instruments,” he said in an address at the South African Iron and Steel Institute’s Southern African Steel Summit, held in Johannesburg on August 30. “It is durable, adaptable and endlessly recyclable, making it the start of our journey toward reducing our carbon footprint.”
Fiscal consolidation, structural reform key to bolstering South Africa’s economic growth (Engineering News)
With tough global economic financial conditions and the rising needs and development priorities that South Africa has, government must better manage its fiscal situation, as well as address its structural issues to ensure the country can be placed on a sustainable growth and debt path. This was the key message conveyed by International Monetary Fund (IMF) first deputy MD Gita Gopinath, during a speaking engagement at the University of the Witwatersrand School of Economics and Finance on August 31.
To improve South Africa’s growth path, with IMF projections showing near-zero growth for the country this year, as well as minimal growth over the medium term, Gopinath averred that the IMF had suggested two areas of focus. Its first recommendation is on the fiscal side. Secondly, Gopinath said the country needed to undertake structural reform and address structural issues.
Used clothing imports ‘to be banned’ in Uganda (letsrecycle.com)
On Friday, it was reported by Ugandan news website Monitor that the president announced a ban on the import of second hand clothes, effective from Friday 1 September, as part of efforts to boost the local textile manufacturing industry. Monitor reported the president saying: “I have declared a war on second-hand clothes to promote African wear. We are going to stop the importation of second-hand clothes to create jobs form textiles factories. Anybody who stands in my way, I will crash him. We will not allow second-hand clothes to enter the country anymore.”
The move will concern textile recyclers and also some local authorities, as if it goes ahead it could impact the demand for used textiles, thus the price paid for textile bank material. It also comes amid growing political tensions in Niger, which could impact imports in West Africa, too.
Fair Trade Africa steadily changing lives of flower farm workers (Capital Radio)
Ann Mbuthia, Administration Manager at Aurum Roses Limited a flower farm company in Entebbe, Wakiso district has encouraged employers in the country not to shy away from equipping workers with multiple hands-on skills fearing that they will resign and venture into other businesses. She says that workers workers will always have choices to make in and outside their known workplaces. Some choose to stay while others continue to seek greener pastures. Mbuthia adds that this should not be reason enough to deny them opportunities.
In an exclusive interview with Capital Radio, Mbuthia further explains that at Aurum Roses through the Fair-trade Africa initiative, Workers have been furnished with vocational skills and graduated in different courses including tailoring, computer science, and baking among others. This skilling project is aimed at improving their livelihoods but also makes them more helpful in the different communities where they reside.
Uganda’s economy sees impressive growth as trade deficits shrink and exports surge (Business Insider Africa)
The finance ministry’s monthly report on the state of the economy for July 2023 states, “Between May and June 2023, the merchandise trade deficit narrowed by 12.3 percent from $82.08 million to $247.43 million. Year-on-year, the merchandise trade deficit narrowed by 32.2 percent from $365.11 million in June 2022 to $247.43 million in June 2023,” the report shows.
According to an interview with the Ministry Head of Communications Apollo Munghinda, Uganda exported goods valued at $650.57 million in June 2023. “This represented an 11.1 percent increase when compared to $585.81 million exported during May 2023. This increase was mainly on account of higher export earnings from beans, simsim, cotton, and gold registered during the month,” he noted.
Additionally, according to Munghinda, within the same time period, coffee export receipts for the month were $90.56 million, up 23.6 percent from $73.26 million in May 2023. This increase was mostly related to the increased price of Robusta coffee on the international market, which encouraged exporters to remove beans from their warehouses for sale.
The Drive for Trade Integration, by Azour and Aemro Selassie (IMF)
The African continent is on the threshold of a new era. African nations have collectively embarked on a path toward deeper trade integration, with the African Continental Free Trade Area (AfCFTA) as a catalyst to unlock this potential and reshape the continent's trade landscape. This ambitious initiative aims to dismantle barriers to trade and create a unified trade landscape across Africa.
We should commend policymakers for this landmark initiative. But realistically, it was in part a response to rising cross-border trade, investment, and financial flows within the region as economic activity strengthened over the years.
In an era of rapid technological change and an evolving global economy, trade integration can enhance Africa’s resilience to shocks and position the continent for long-term success. Digitalization, for instance, can significantly reduce trade costs by streamlining customs processes and facilitating cross-border payments. Electronic cargo-tracking systems and cloud-based payment systems offer a glimpse of technology’s ability to improve trade efficiency. Diversification of export destinations thanks to AfCFTA implementation, moreover, means less risk from shifting global trade patterns and greater economic resilience.
Somalia likely to join EAC 11 years after membership bid (People Daily)
Somalia is finally set to become the latest member state of the East African Community (EAC), almost 11 years after Mogadishu first applied for membership. It has already made a critical step in the negotiations stage and is set become the eighth member of the bloc after Democratic Republic of Congo (DRC) that formally joined in April 2022.
Already, the negotiations for admitting Somalia began on August 2022 and will end on September 5.The final decision regarding Somalia’s admission into the EAC however rests with the Heads of State Summit scheduled for November, according to Dr Abdusalam Omer, the Special Envoy of the President of the Federal Republic of Somalia to the EAC.
AFEX, GCX sign MoU to foster cross-border commodities exchange (Businessday NG)
AFEX, Nigeria’s commodities exchange and Ghana Commodities Exchange (GCX), have signed a Memorandum of Understanding (MoU) to strengthen the commodity trading ecosystem across Nigeria and Ghana. The MoU signing took place at AFEX’s office in Abuja which underscored the commitment to leverage collaboration to effectively transform the agricultural sector.
Under the partnership, AFEX and GCX will collaborate on areas related to commodities trading, warehousing, quality standards, and market infrastructure development. In addition, both organisations will also collaborate on capacity-building initiatives, with both exchanges deploying their resources to facilitate cross-border trading of warehouse receipts and increase market liquidity of commodities.
“This is a significant step towards realizing our shared vision of seamless market integration in Africa’s commodity trading space, and together, we will not only enhance commodities trading and market infrastructure, but also empower farmers and traders through capacity building,” Tucci Ivowi, CEO, Ghana Commodities Exchange stated.
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tralac Daily News
NEV disruption holds opportunities for OEMs, component manufacturers (Engineering News)
The world is at the beginning of the biggest disruption to the automotive industry in 100 years with the transition to new energy vehicles (NEVs), and, in turn, considerable upheaval in the supply chain ecosystem – however, this could present opportunities if properly leveraged and capitalised on. This was noted by consultancy EVAdoption CEO Loren McDonald, delivering the keynote address on the first day of the National Association of Automotive Components and Allied Manufacturers (Naacam) 2023 show, in Pretoria, on August 30.
McDonald pointed out that NEVs were gaining traction, with automakers investing billions in NEV battery plants, factories, technology and supply chains. It was expected that, by 2030, there would be $1.3-tillion invested in electric vehicles and batteries, he noted.
In terms of challenges, he mentioned that, with vehicles becoming more technologically advanced, component manufacturers needed to be able to build the hardware to match and work with the software, with there currently being a disconnect here. This, he said, would lead to a fundamental shift in the nature of the supply chain.
Ghana to become net exporter of salt with establishment of Ada Songor project (GhanaWeb)
President Nana Addo Dankwa Akufo-Addo has said the establishment of the Ada Songor Salt project is an example of what government policies, backed by private sector participation, can achieve in Ghana’s quest to be become self-reliant on its resources. According to him, the project aims to ensure that the country can become self-reliant on the commodity while positioning itself at becoming a net exporter.
“This is the first time in recent history that an indigenous Ghanaian businessman owns one of the biggest extractive industries in Africa. He [McDan] is a shinning an example of what determination and perseverance can produce,” Akufo-Addo praised.
President Akufo-Addo said the Ada Songor project, currently has the ability to produce some 650,000 metric tons of salt products per annum, 1 million metric tons in 2024 and 2 million metric tons by 2027, will ultimately make it the biggest salt mine producing facility in Africa.
Kenya to link with South Sudan, Ethiopia via electric rail (Kenyan Wallstreet)
Kenya will in 2025 begin constructing a $ 13.8 billion high-speed electric standard gauge railway linking its Indian Ocean port of Lamu to Ethiopia and South Sudan. The 3,000 km big ticket standard gauge railway project, will hook Lamu port to Isiolo before branching into three arteries to Addis Ababa, Juba and Nairobi, according to the Lamu Port South Sudan Ethiopia Transport (LAPSSET) Corridor Development Authority.
With a projected economic internal rate of return of more than 12%, Lapsset says this proposal is viable. Kenya is already raising $9 million for detailed feasibility and engineering studies from an Africa Union infrastructure fund. This electric rail link project is expected to connect Kenya with the two other neighbours, creating a combined economic output of $ 233 billion and a population of close to 200 million people.
The LAPSSET Corridor Program is Eastern Africa’s largest and most ambitious infrastructure project bringing together three East African Nations of Kenya, Ethiopia and South Sudan.
AfCFTA not a perfect crinkle cut - Trade Law Centre (Namibia Economist)
According to TRALAC, the Trade Law Centre based in South Africa’s latest update on the implementation of the African Continental Free Trade Area Agreement, the process is too start soon. When implementation starts, the member countries should be informed by what the State Parties accepted as new commitments, and what they want to retain from existing structures and regional agreements.
“Although the objective of a trade agreement is to liberalise trade, the actual provisions are normally shaped by domestic and international political realities. Domestic and regional peace and stability are not to be overlooked when the benefits of trade deals such as the AfCFTA are discussed,” states the Tralac update.
The AfCFTA is codified based of previous and is most likely to be implemented alongside existing regional trade arrangements and will be implemented by the same governments. The AfCFTA does not, for example, provide for a new approach to trade facilitation. “It is assumed that this agreement will be properly implemented and soundly governed. If this does not happen, the perceived benefits will not materialise,” Tralac concludes.
Afreximbank says Africa benefits from use of local currency for continental trade (The Star)
The African Export-Import Bank (Afreximbank) said on Wednesday that the continent is benefitting from the use of local currencies when engaging in intra-African trade.
Denys Denya, Afreximbank’s executive vice president for finance, administration and banking services, said at a roadshow in the Kenyan capital of Nairobi that foreign currencies, such as the U.S. dollar which is traditionally used for cross-border trade, are currently in short supply in the continent.
“The use of local currencies for trade within Africa is easier for both large and small entrepreneurs because they don’t need to source foreign currencies,” Denya said during the Intra African Trade Fair 2023 Business Roadshow. He added that the use of local currencies has numerous advantages because it limits the possibility of extraterritorial sanctions by the owners of the third-party currencies. Denya said the use of local currencies also boosts trade among African countries because dollars are only required to settle net differences in trade.
He noted that intra-African trade is made possible by the Pan-African Payment and Settlement System, which was developed by the Afreximbank and is owned by African central banks.
Related: End raw material shipment, Africa told (The Star)
Export finance credit plays critical role in boosting exports – Chithyola (Malawi Nyasa Times)
Minister of Trade and Industry Simplex Chithyola Banda has emphasized the critical role export credit finance plays in promoting trade and investment, also as an essential tool for boosting exports facilitation. Chithyola Banda made the remarks on Monday during the opening of a three-day strategic training on Export Credit Finance in Lilongwe.
He said export credit finance is a very strategic area for Malawi as it augers well with the vision of the administration of His Excellency the President, Dr. Lazarus McCarthy Chakwera, as the country strive to achieve a Malawi that is an inclusively wealthy and self-reliant export-led industrialized upper middle income country by 2063.
He added that his Ministry is aware of the growing demands for our country and other countries within the SADC region to expand export trade footprints within the African region and even beyond by growing the existing markets and opening frontier markets. “With such calls, the issue of export credit finance is becoming even more important. Adding that as a region we need sound export credit finance functions that should ably enable export trade in a safe, value adding, and sustainable manner.”
African solution, new world order prescribed for debt burden (New Business Ethiopia)
Calling for an African solution and a new world order, the third edition of African Conference on Debt and Development (AfCoDD III) that aims to reflect on African countries debt burden, is opened this morning in Dakar, Senegal.
Experts along with representatives from non-governmental, governmental and media organizations have gathered for the three days conference that is expected to reflect on the state of debt in Africa and its implications of the development of the continent and the people.
In order to properly address the growing burden of debt, the conference suggested that African countries need to reimagine rethink, reorganize and remobilize for an African world order. “Our world is at critical juncture…Transition out of crisis need forming a new …The world we are living today is not sustainable. We need the world where the people are at the center. A world where Africa is a rule maker…not a rule taker,” said Ebrima Sall, Trust Africa Executive Director, in his opening speech.
Financing of African development needs to come primarily from Africa not external debt, according to Ebrima Sall. He mentioned some 90 billion USD is leaving Africa as illicit financial flows…He argued that stopping this can help African countries to stop the bleeding and its dependency on unsustainable aid. “…The solutions must be an African if they have to be lasting solutions…the future is in our hands” he said.
Africa’s Fragile States Are Greatest Climate Change Casualties (IMF)
Climate change poses grave threats to countries across Africa—but especially fragile and conflict-affected states. As the continent’s leaders converge on Kenya for next week’s African Climate Action Summit, it is vital that they come up with solutions to support these vulnerable countries.
From the Central African Republic to Somalia and Sudan, fragile states suffer more from floods, droughts, storms and other climate-related shocks than other countries, when they have contributed the least to climate change. Each year, three times more people are affected by natural disasters in fragile states than in other countries. Disasters in fragile states displace more than twice the share of the population in other countries. And temperatures in fragile states are already higher than in other countries because of their geographical location.
A new IMF paper finds evidence that climate change indeed inflicts more lasting macroeconomic costs in fragile countries. Cumulative losses in gross domestic product reach about 4 percent in fragile states three years after extreme weather events. That compares with around 1 percent in other countries. Droughts in fragile states are expected to cut about 0.2 percentage points from their per-capita GDP growth every year. This means that incomes in fragile states will be falling further behind those in other countries.
The more harmful effect of climate events in fragile states is not only because of their geographical location in hotter parts of the planet, but also because of conflict, dependence on rainfed agriculture, and lower capacity to manage risks.
Improving statistics on gender and trade in developing countries (UNCTAD)
When it comes to understanding and fostering women’s economic empowerment, measuring the gender dimension of trade has emerged as an increasingly important endeavour. But for a long time, the lack of data on gender equality in international trade has posed a bottleneck, hampering countries’ abilities to apply the gender lens needed to design policies that equally empower women and men.
To bridge this gap, UNCTAD in 2018 began developing a framework to help countries link existing national statistical data to assess gender in trade. The process, called “microdata linking”, offers a cost-effective and sustainable alternative to creating new one-off surveys. The framework has been tested by half a dozen countries, and the methodology is now outlined in UNCTAD’s newly published guidelines for measurement of gender-in-trade statistics, aimed at helping national statistical offices enhance data to inform trade policy development.
The guidelines were developed as part of a joint project on data and statistics for more gender-responsive trade policies in Africa, the Caucasus, and Central Asia, in which UNCTAD collaborated with the UN’s regional economic commissions for Africa and Europe. Cameroon, Georgia, Kazakhstan, Kenya, Senegal and Zimbabwe piloted UNCTAD’s microdata linking methodology and compiled a set of new experimental, sex-disaggregated indicators measuring employment, wages and business ownership. The results in all six pilot countries reaffirmed gender gaps in favor of men but also revealed many differences across countries.
Historic $650 Billion Liquidity Boost Continues to Benefit the Global Economy (IMF)
More than $100 billion of SDRs in pledges announced by the G20 are being channeled from stronger members to vulnerable low-and middle-income countries, amplifying the direct benefits of the allocation. A number of emerging market economies and low-income countries also used SDRs to finance pressing fiscal needs, including those related to the pandemic, according to the IMF’s SDR Tracker, which collects information on how countries used the resources.
Energy transition calls for faster investment treaty reforms (UNCTAD)
Sweltering heatwaves each year underline the need for a faster energy transition and speedier reform of International investment agreements (IIAs) to support the shift away from fossil fuels.
To reach net zero emissions by 2050, annual clean energy investment worldwide needs to more than triple to $4 trillion by 2030. But many investment treaties, especially older ones, can hinder the transition. As countries try to cut ties with fossil fuels, oil and gas firms might use these treaties to challenge policy changes. An example is a coal phase-out claim against the Netherlands.
“Governments and the international investment community should intensify their efforts to reform investment treaties in support of the energy transition and to minimize risks of expensive legal disputes,” says Hamed El-Kady, who heads UNCTAD’s international investment agreements section. UNCTAD has developed a toolbox to help countries transform IIAs to better support the energy transition.
Quick links
‘How Nigerian exporters can leverage AfCFTA using e-commerce’
Africa is poised to become a global supply chain powerhouse
Kenya joins efforts to have free trade area across all African countries “ Capital News
Manufacturing has the key to unlock intra-African trade
G20’s vision for trade and investment: A deep dive
Countries from Global South urged to harmonize regulatory frameworks on biotechnology
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South Africa missed the boat on some localisation opportunities, but higher value industries can be pursued (Engineering News)
The latest research from policy research entity Trade and Industrial Policy Strategies (TIPS) reveals that, for the first time since the start of the Covid-19 pandemic, exports declined while imports continued to grow.
The latest Imports Localisation and Supply Chain Disruption Study for the fourth quarter of 2022, shows that exports fell 3% to R495-billion during the fourth quarter of 2022, from R510-billion in the fourth quarter of 2021. Imports, meanwhile, continued to rise, increasing by 19% to R487-billion in the fourth quarter of 2022, from R409-billion in the fourth quarter of 2021. Exports for the fourth quarter of 2022 were 6% higher when compared with the fourth quarter of 2020. In contrast, imports were 39% higher.
Speaking during a Development Dialogue on Localisation on Tuesday, TIPS senior economist Nokwanda Maseko, discussing the Import Tracker and the Imports Localisation and Supply Chain Disruption Study, released in August, said that South Africa remained a net importer of many products and changing this would likely need further discussions and studies on whether it would be worthwhile to pursue localisation in certain sectors, with the country having missed the opportunity to develop within some industries.
About 59 products have been analysed since the first quarter of 2020, covering a range of sectors, including information and communication technology (ICT), clothing, textiles, footwear and leather, capital equipment and food and beverages, besides others, and combined, these amount to about R63-billion worth of imports per quarter, which shows that there can be higher value if there is potential for localisation.
Kenya and Indonesia target regional blocs (The East African)
Kenya and Indonesia are seeking to utilise improved political and trade ties to access each other’s regional trading blocs to expand their export markets. During Indonesian President Joko Widodo’s visit to Kenya this week, several cooperation agreements – in energy, health, agriculture, textile and clothing, and security – were signed.
Kenyan President William Ruto said Nairobi will utilise the improved ties with Jakarta to slim Kenya’s trade balance with Indonesia, which is currently in deficit. But Kenya is also eyeing to access the Association of Southeast Asian Nations (ASEAN) market, one of the largest common markets in the Asia-Pacific region.
Indonesia is also seeking to gain access to the East African Community and Comesa. “Kenya is the first in this domanial side, access Kenya, access the many other countries in the region,” Rendra Kusumawardana, First Secretary in charge of Economic Affairs at the Indonesian embassy in Nairobi, told The EastAfrican.
Uganda’s trade deficit narrows by 32.2% (Monitor)
Uganda’s finance ministry has said the country’s trade deficit with the rest of the world has narrowed both on a monthly and annual basis, owing to an increase in export receipts that more than offset the rise in the import bill. The finance ministry’s monthly economy performance report for July 2023, indicates that “between May and June 2023, the merchandise trade deficit narrowed by 12.3 per cent from $82.08million to $247.43million.”
The ministry’s head of communications, Apollo Munghinda, told Monitor that in June 2023, Uganda exported merchandise worth $650.57million. “This represented an 11.1 per cent increase when compared to $585.81 million exported during May 2023. This increase was mainly on account of higher export earnings from beans, simsim, cotton and gold registered during the month,” he noted.
Meanwhile, the [July] monthly economy performance report further shows that in June 2023, the East African Community (EAC) remained the top destination of Uganda’s exports, accounting for 33.9 per cent of the total market share.
Trade strengthening institutions and tourism after conflict in Liberia (Trade for Development News)
Liberia, a small West African country, is home to 5.2 million people and shares borders with Sierra Leone, Guinea and Cote d’Ivoire. It boasts abundant natural assets, including vast forests, coastlines, mineral resources and a rich cultural heritage. However, years of civil conflict between 1990 and 2003 eroded the country’s infrastructure and left more than 150,000 people dead.
As the country was rebuilding and its economy recovering, it was hit by a devastating Ebola epidemic – resulting in 3,000 deaths. The epidemic also caused a drastic downturn in the country’s informal trader-driven commercial sector. Many businesses ceased operations as movements of both goods and people, as well as trading in services, were curtailed due to increases in transport and road maintenance costs. Tourism, which is key to Liberia’s trade and economic growth, was not spared either, as the country became an overlooked destination and its competitiveness plummeted in the aftermath of Ebola.
Based on the updated Diagnostic Trade Integrated Study (DTIS) and with support from ITC, the EIF helped Liberia prepare export strategies for both the tourism and rubberwood industries.
Niger coup: Suspend sanctions, restore electricity — Falana tells ECOWAS (Vanguard)
Nigerian legal luminary and former chairman, West Africa Bar Association, WBA, Mr Femi Falana has called for the immediate lifting of the sanctions placed on Niger by the Economy of West African States, ECOWAS, following the latter suspension of the use of force to unseat the military coup in Niamey.
Falana who was the keynote speaker at the West Africa Civil Society Week’23 on Tuesday, while speaking on the theme: Civil Society in West Africa: Reimagining the Role of the Third Sector in protecting civil space and consolidation democracy for regional development, “ noted that civil society organizations should reclaim their mandate of standing and speaking for the rights of the masses, and the promotion and sustainability of democracy.
Suggesting ways to end uprisings in West Africa, especially coup d’états, the former WAS chairperson, called on ECOWAS to end the stealing of mineral resources by imperialism, and as a matter of urgency launch the single currency to be used by the continent, among other factors that he raised. “We must take advantage of the political crises in West Africa to launch the eco as the currency for the region.”
Secretary General for International Organisation for Standardisation visits Ghana (BusinessGhana)
The Secretary General for International Organisation for Standardisation (ISO) Sergio Mujica, who is on a three day visit to Ghana, has paid a courtesy call on Mr K.T. Hammond, the Minister of Trade and Industry. Addressing the media after the meeting with the Minister, the ISO Secretary General praised the leadership of Ghana in the international organisation for standardisation.
“We have some of the best practice right here in this country when you approved last year. For example, the National Quality policy that is very important as well as we have more than two laws that captured Ghana Standards Authority also in the year 2022,” he said. He acknowledged the country’s ambitions of becoming a hub for industry and emphasized the essence of specifications and requirements that bring together all best practices around the world.
Commonwealth study points to green steel opportunity in East Africa (CCE Online News)
A study published by the Commonwealth Secretariat earlier this year has highlighted the potential for the East African Community (EAC) to establish a billion-dollar ‘green steel ecosystem’ and secure a profitable but less carbon-intensive steel industry for the region. The report, titled ‘Towards a Green Steel Ecosystem in the East African Community’, outlines strategic issues and key requirements for developing an emergent regional industry and some recommends steps for cutting carbon emissions in the steel value chain.
The EAC region, covering Burundi, the Democratic Republic of the Congo, Kenya, Rwanda, South Sudan, Tanzania, and Uganda, has seen a sharp increase in the demand for steel. Net imports of iron and steel by volume has grown by about 11.4% annually between 2010 and 2019. Kenya and Tanzania together used over 4 million tonnes of steel in 2019, while Ugandan demand pushed 1 million tonnes per year.
The report found that the region holds several comparative advantages to support a regional ‘greening’ approach These include a strong and growing regional market for steel products, an expanding transportation infrastructure, a range of private sector companies with steelmaking capability, as well as existing and planned hydro, geothermal, and other renewable electricity production. Moreover, because the region is not tied to conventional high carbon-emitting plants, it is less complicated to decarbonise.
Renewables offer Africa opportunity to achieve SDGs (The Namibian)
Africa must increase investment in developing its renewable energy and attract greater support of the private sector and international financial institutions if it is to achieve the United Nations’ Sustainable Development Goals (SDGs). This was the conclusion of experts at an Africa Development Bank-arranged meeting in Abidjan last week.
The continent should also control, exploit and transform its enormous mineral resources locally to generate the financial resources needed for its development, urged the experts, who represented a dozen African countries, during an African Development Bank (AfDB) workshop on 23 and 24 August under the theme ‘Financial Modelling for the Extractive Sector’.
Speaking on a panel on ‘Financial modelling for a just energy transition for certain critical minerals in transition countries’, the director of policy and research at Sierra Leone’s ministry of mines and mineral resources, John David Cooper, said renewable energy gave his country opportunities to achieve certain SDGs. “We also need to be major players in the energy field,” Cooper said. Participants noted that Africa has made considerable progress in energy transition, despite challenges.
Protectionism Is Failing to Achieve Its Goals and Threatens the Future of Critical Industries (World Bank)
Since 1990, global trade has increased incomes by 24 percent worldwide, and by 50 percent for the poorest 40 percent of the population. This growth has lifted more than 1 billion people out of poverty. Trade has also played a pivotal role in shaping the global economy and promoting positive socioeconomic outcomes. Today, however, protectionist measures are on the rise. And trade tensions and geopolitical challenges are raising concerns about the trajectory of globalization.
As a result, deglobalization—the process of reducing global economic interdependence—has been at the forefront of current policy discussions. At a recent Policy Research Talk, World Bank Research Manager Daria Taglioni discussed the fundamental transformations taking place in the global trading system and how they relate to patterns of industrial organization.
To illustrate the complexity at the heart of current global patterns of trade, Taglioni pointed to three apparent paradoxes. First, China has become ever more central to global trade networks in recent years, even as the United States and China engaged in a trade war. Second, despite shocks emanating both from policy and the COVID-19 pandemic, global value chains (GVCs) now account for an even greater proportion of global trade flows. In 2022, GVCs accounted for 52 percent of global trade, up from approximately 48 percent in 2015 and even slightly higher than prior to the 2007-2008 global financial crisis. And third, firms continue to connect with customers and suppliers all around the globe rather than just in their region, even as the challenges to global trade mount.
Given the breadth and depth of global interdependence, Taglioni argued that naïve trade and investment policies have significant unintended consequences. The goals that drive protectionist measures could be better achieved through increased rather than reduced international openness and cooperation, she said.
Related: Post-pandemic, world facing gloomy stew of debt, trade wars and poor productivity (Reuters)
UAE calls for free flow of capital, goods, services during B20 meeting in India (Khaleej Times)
The UAE has called for further international action to ensure the free flow of capital, goods, and services, being the driver behind global development and economic prosperity. This was said in a statement given by Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, as he addressed ministers and senior government officials at the B20 Summit in New Delhi, India, during which he emphasised the need for collective action to support the multilateral trading system, strengthen global supply chains and accelerate the deployment of technology to improve supply-chain efficiency and inclusivity.
During a special plenary for G20 trade ministers on the opening day of the B20 forum, Al Zeyoudi underlined the UAE’s conviction that the free flow of goods, services and capital remains a key driver of economic growth and development, especially for the Global South.
Dr Thani also used his visit to the B20 Summit to announce the launch of a Ministry of Economy report titled “Global Trade Risks 2023: Barriers to Growth”, in which more than 500 corporate leaders from around the world were surveyed on their perception of the most significant threats to global trade. According to the survey, the rising level of public and private debt, and its subsequent impact on investment, financial liquidity and consumer demand, was considered the single largest threat to global trade – with 61 per cent of respondents saying this will have a high, very high or extremely high impact on global trade, and with the same percentage saying there was a high likelihood of this occurring.
Quick links
How can AfCFTA’s $10bn fund benefit Rwandan women, youth traders?
GDP growth, second quarter 2023 – OECD
Trade restrictions, inflation, El Niño dent Apec growth
The economic costs of restricting trade: the experience of the UK
Border Carbon Adjustments: Priorities for international cooperation
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South Africa: Draft Freight Logistics Roadmap promised by year-end (Engineering News)
A new ‘Freight Logistics Roadmap’ is currently undergoing an internal government consultative process for publication before the end of the year, the latest Operation Vulindlela progress update confirms. “The roadmap will incorporate proposals to resolve the immediate operational challenges while developing interventions to fundamentally restructure the logistics sector to support inclusive economic growth,” the update states. The roadmap is being developed by government and Transnet and a final draft is expected to be concluded in the third quarter of 2023.
The update acknowledges that reforms in the sector are still facing significant implementation challenges, which require interventions to overcome. However, it does highlight the completion of the selection of an international terminal operator partner for the Durban Pier 2 container terminal, which it argues will crowd in private investment and skills, as well as the establishment of a multistakeholder task team to address congestion at the Durban Port.
The urgency of sectoral reform is also reinforced in the update, which describes Transnet’s decline as posing a material risk to the country’s economic prospects, with rail’s underperformance having resulted in losses equivalent to 5.3% of gross domestic product in 2021
Kenya and South Sudan Sign Fiber Optic Cable MoU (TelecomTalk)
Kenya and South Sudan have taken a step towards enhancing connectivity and communication infrastructure. The leaders of both nations, President William Ruto of Kenya and President Salva Kiir of South Sudan signed a Memorandum of Understanding (MoU) to establish a fibre optic cable along the Eldoret-Juba road.
The fibre optic cable project is set to play a pivotal role in facilitating seamless communication between Kenya and South Sudan, further solidifying their collaboration across various sectors. The high-speed connectivity facilitated by the fibre optic cable is said to boost trade between the two countries. The fibre optic cable is set to be establishment along the road connecting Eldoret in northwest Kenya to Juba, the capital of South Sudan.
Stakeholders Hold Workshop To Boost Nigeria’s Cassava Industry (Voice of Nigeria)
In furtherance of the Presidential mandate to transform the agricultural sector, the Nigerian Agricultural Growth Scheme and AgroPocket, NAGS-AP, with the support of the African Development Bank, AfDB, and the Japanese International Cooperation Agency, JICA, convened a Cassava Implementation Strategy Workshop in Calabar, Cross River State, South South, Nigeria. The workshop, which was held on Friday, August 25,2023 under the theme “Cassava: Maximizing the Full Potentials of Nigeria’s Golden Crop”.
In his keynote address, Prof. Chiedozie Egesi, Executive Director/CEO of NRCRI and Cassava Component Lead of the NAGS-AP Program, highlighted Nigeria’s leading position in cassava production and the need to boost the country’s cassava value chain. He noted that Nigeria produces an average of 63 million metric tons of cassava annually, but its contribution to the global market is relatively low. He attributed this to the country’s low cassava productivity, which is due to the use of low-yielding varieties and the non-adoption of good agronomic practices. Egesi called for a focus on value addition as the key to unlocking cassava’s full potential.
Renovation work on the Port of Bujumbura – part of a vast project to develop the regional corridor to Lake Tanganyika – got underway on 17 August 2023 at a launch ceremony attended by the Burundian authorities and the project’s financial partners, the European Union and the African Development Bank Group. It marks a major step towards strengthening Burundi’s transport infrastructure and exploiting the potential of Lake Tanganyika as a navigable inland waterway.
The renovations will cost €79 million; The African Development Bank Group is providing €23.4 million and the European Union will contribute €29 million through the AfDB-EU Hub partnership, a framework agreement signed by the African Development Bank Group and the European Commission in 2017.
EA trade deficit widens on cheaper exports, dearer imports (The East African)
The relentless depreciation of East African currencies, which is supposed to make their exports cheaper in foreign markets, has failed to improve trade balances for the region, defying expectations and putting more pressure on foreign exchange needs.
Ugandan economist Bernard Musekese explains that all East African economies are running on an export-led strategy, which is to “export as much as possible so that revenues from exports can offset the import bill.” But most countries in the region have recorded a worsening trade balance, as imports continue to grow despite being more expensive to the domestic consumers, putting more pressure on foreign exchange.
Africa’s development is not coming from anybody else, own the AfCFTA (MyJoyOnline.com)
Secretary-General of the African Continental Free Trade Area, Wamkele Keabetswe Mene, has urged Africans especially the youth to take ownership of the new trade initiative which in his estimation portends the solution to moving the African continent from the periphery to the core of the global economy.
Speaking at a town hall organized by the African Continental Free Trade Area (AfCFTA), in collaboration with the Government of Zambia at the inaugural edition of the AfCFTA Youth Symposium come August 21–23 in Lusaka, Zambia, the first secretary-general pointed out that “the development of our continent is not going to come from anybody else except from us (Africans)”.
He added: “Countries will experience balance of payment effects and not be able to implement the agreement, these are challenges that are going to be there but my view is that if we don’t take our own economic destiny into our own hands we will be in the periphery of the global economy.”
‘Common agenda’ calls intensify ahead of Africa Climate Summit (The East African)
Organisers of the Africa Climate Summit in Nairobi are facing the heat from civil society activists and experts who are pushing for what they say should generate a meaningful stand for the continent. First point of contention has been on the agenda and sponsorship, with critics feeling those who bring in the money could sway the agenda, away from what Africa needs.
This week, a letter to Kenya’s President William Ruto co-signed by more than 300 civil societies called for “an urgent reset” of the agenda pushed by organisers of the summit set for Nairobi next month.
“The summit must press for increasing adaptation finance to Africa by more than double and ensure it is based on Africa’s needs and reaches the communities at the forefront of the climate crisis,” said Dr Mwenda. And experts have called on the Summit to prioritise green energy transition. At least 15 African presidents are expected at the summit themed, “Driving green growth and climate finance solutions for Africa and the world.”
The Economic Commission for Africa (ECA) organized a Green Investment Advocacy Forum for the Southern African Development Community (SADC) on August 24, 2023. The virtual event, which was organized in partnership with the SADC Secretariat under the theme “Leveraging Green Investment Opportunities under the AfCFTA,” brought together a diverse array of stakeholders to deliberate on strategic pathways to harness sustainable and green investments in the region.
Current emissions from the African manufacturing sector—accounting for about 30 to 40 percent of total African emissions—highlight the critical need for investments that support low-carbon or green manufacturing. At the same time, investments into climate-resilient solutions across all sectors will be key to help the region adapt to the impacts of climate change.
Speaking at the forum, Ms Eunice Kamwendo, Director of the ECA Subregional Office for Southern Africa said: “Amidst our pursuit of industrialization, let’s remember the essence of Green Growth. Climate change is not a distant threat; it’s entwined in our daily reality, shaping how we trade and do business.” She pointed out that in order to secure our future, investing in climate adaptation and low-carbon industrialization is paramount.
Realizing product diversification for structural change in African countries (UNCTAD)
Export diversification has been among the most cited policy recommendations for African countries to spur structural transformation and increase resilience. However, export diversification that benefits structural change is not an automated process and requires an analytical approach and complex decision-making.
Applying an adjusted economic complexity and product space methodology on trade data of 54 African countries and their trading partners, this paper assesses export diversification opportunities that are feasible to realize, associated with structural change and of high demand in the world and on the African continent. Increasing complementarities of African exports and imports are crucial to yield higher benefits from the African Continental Free Trade Area (AfCFTA).
Over 50 African countries agree to work on minimising impact of mineral mining (Down to Earth Magazine)
Environment ministers of the African continent have agreed to institute national and regional strategies to minimise environmental impacts in the extraction and processing of critical mineral resources. The continent is facing several challenges as countries, especially China, rush to Africa for its mineral resources.
Fifty-four countries acknowledged key environmental challenges faced by the continent — land degradation, desertification and drought – in the Addis Ababa declaration, August 18, 2023. The declaration was a key outcome of the 19th African Ministerial Conference on the Environment (AMCEN) 2023 held from August 14 to 18, 2023 at Addis Ababa, Ethiopia. The theme for AMCEN 2023 was “Seizing Opportunities and Enhancing Collaboration to Address Environmental Challenges in Africa”.
The declaration prioritises urgent, wide-ranging action on environmental challenges related to climate change, plastics pollution, marine protection, biodiversity conservation and natural capital. They will work towards closing the biodiversity finance gap of $700 billion per year. The ministers have also resolved to work together and ensure that international financial flows to developing countries are increased to at least $20 billion per year by 2025. The ultimate aim is to increase the global finance flow to at least $100 billion per year, stated the declaration. The countries have also agreed to work on a priority to implement Africa Blue Economy Strategy of the African Union.
Afreximbank and China Development Bank sign US$400-million loan to support Africa SMEs (Afreximbank)
The China Development Bank (CDB) today in Cairo signed a development-focused agreement to provide the African Export-Import Bank (Afreximbank) with a US$400-million term loan facility to support the financing of small and medium-sized enterprises (SMEs) across Africa.
The agreement provides for Afreximbank to deploy the facility to support African SMEs involved in extra- and intra-African trade and those engaged in the productive sectors in Afreximbank Member States. According to the agreement, the facility, which has a seven-year tenor, will be deployed either directly to eligible African SMEs that meet Afreximbank’s requirements or indirectly through local financial intermediaries.
BLSA CEO highlights productive Brics summit outcomes (Engineering News)
The Brazil, Russia, India, China and South Africa (Brics) Summit held last week in Johannesburg was “positive and productive”, with member nations focused on how they can support each other’s development and a rules-based multilateral system, business organisation Business Leadership South Africa (BLSA) CEO Busi Mavuso writes in her weekly newsletter.
Mavuso cites that, in his opening address, Trade, Industry and Competition Minister Ebrahim Patel spoke on the need to facilitate trade that will support inclusive growth in an accelerated but sustainable way. He said the next wave of global growth was going to come from Africa, given its young and growing population and Brics nations needed to position themselves for it. He also mentioned the importance of the African Continental Free Trade Agreement and entrepreneurship on the continent. Mavuso avers that these themes are the correct ones to have focused on.
Ethiopia’s entry into BRICS mechanism to boost economic growth, political cooperation: experts (Xinhua)
Ethiopia’s entry into the BRICS mechanism is expected to facilitate the country’s economic growth, and help forge strong and lasting political cooperation with the BRICS family, Ethiopian experts have said.
BRICS leaders agreed on Thursday to invite six countries, namely Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE), to join the group. Their membership will take effect on Jan. 1, 2024. “Working with these countries advances our economic development by attracting foreign direct investment for industrialization and infrastructure projects,” Balew Demissie, an associate professor at Addis Ababa University, told Xinhua in a recent interview.
Highlighting the potential advantages of Ethiopia’s collaboration with BRICS, the professor said “the cooperation can improve connectivity within the country and with neighboring nations, facilitate trade, promote regional integration, and create new economic opportunities.”
China’s dominance a key factor in renewable energy subsidy wars (Engineering News)
One of the primary catalysts for the prevalent global emergence of subsidies within the renewable energy sector stems from the dominance of China, research firm BMI Research operational risk analyst Keaton Fitzpatrick has said.
Speaking at a webinar hosted by BMI Research – a Fitch Solutions company – titled ‘Subsidy Wars and The Energy Transition, The Race To Develop Low Carbon Energy Manufacturing’ on August 24, he said China had unequivocally established its preeminence across the global energy supply chain, encompassing vital components of renewable energy, as well as the critical mineral provisions and corresponding market domains.
China’s competitive edge can be attributed to a confluence of factors, notably robust State backing, a favourable labour cost framework and the advantages derived from economies of scale.
DG Okonjo-Iweala: turning away from open trade risks price volatility, weaker growth (WTO)
Speaking at the annual Jackson Hole Economic Policy Symposium hosted by the Federal Reserve Bank of Kansas City, the Director-General said predictable trade is a source of disinflationary pressure, reduced volatility, and increased economic resilience whereas fragmentation of trade into rival blocs “would be very costly.”
“A world that turns its back on open and predictable trade will be one marked by diminished competitive pressures and greater price volatility,” the Director-General warned. “It would be a world of weaker growth and development prospects, a slower low-carbon transition, and increased supply vulnerability in the face of unexpected shocks.”
Quick links
S. Africa signs deal to export avocados to China
AfCFTA: We need to break trade barriers in Africa
EU infrastructure fund eyes African clean jet fuel projects
IFC Invests Record $11.5 Billion for Africa’s Green Transition and Job Creation
The Expanded BRICS - 84 Countries with a Collective GDP of US$83.5 Trillion
US shifts from a trade war to a subsidy war
Related News
tralac Daily News
South Africa: Panel agrees agriculture can only grow through impactful collaboration (Engineering News)
With the South African agriculture sector not enjoying the same level of State support as many of the countries it is expected to compete with globally, it is vital that agribusinesses at least be enabled to operate and support one another, a panel of speakers have agreed.
The speakers participated in chemicals group Omnia’s first-ever industry dialogue at the Gordan Institute of Business Science (GIBS), in Gauteng, earlier this week. The dialogue unpacked many of the current challenges faced by the agriculture industry.
many countries within Africa were net importers of produce or food products, all this while the population in Africa was set to account for 50% of the global ten-billion population by 2050, who all need to be fed, added economist and GIBS research associate Francois Fouche. He said food demand would only be met by investing in technology and that Africa’s young population could be harnessed for skills development. Fouche believes African countries can solve many of their challenges through collaboration with each other.
Namibia, Zambia 24-hour border will help Walvis Bay (Windhoek Observer)
The introduction of a 24-hour border operation between Namibia and Zambia is anticipated to provide a boost to the operations of the Walvis Bay Port. Officials from both Namibia and Zambia are of the opinion that this initiative, launched at the Katima Mulilo border post this week, will be advantageous due to the increasing trade of imports and exports between the Port of Walvis and Zambia as well as the Democratic Republic of the Congo.
The Zambian Minister of Home Affairs and Internal Security, Jack Mwiimbu emphasized the timely and strategic nature of the 24-hour operation’s inauguration at the border.
“This 24-hour operation is set to contribute to the establishment of a continental marketplace for goods and services, promoting seamless movement of people and capital. Furthermore, it seeks to facilitate intra-African trade growth by harmonizing and coordinating trade liberalization across the continent,” stated Mwiimbu.
Africa now fastest growing source of diaspora flows to Kenya (The East African)
Diaspora remittances from African countries to Kenya posted a 42 percent growth in the seven months to July as more Kenyans continue to seek jobs and study abroad, especially in the continent.
The Central Bank of Kenya (CBK) data reveals that in the seven months to July, Kenyan citizens living in other African countries wired $164.4 million (Ksh22.2 billion), up from $116 million (Ksh15.6 billion) last year. The growth is the fastest among all continents in a period when North America and Europe are coming from high inflation that averaged eight percent in the US and 7.9 percent in the UK.
Uganda and Zambia are an example of countries offering better opportunities for Kenyans. Inflows from Zambia more than doubled, growing 136 percent to $5 million, followed by Uganda, which posted a 113.5 percent growth in cash sent back home by Kenyans.
Togo holds potential as trade partner - Ambassador Demitia (The Business & Financial Times)
The Ghana Ambassador to Togo, Kofi Mensah Demitia, has asserted that the strategic position and economic diversification of Togo makes it a suitable bilateral trade partner for Ghana. According to him, trade policies in Togo are very conducive for private businesses. “Togo and Ghana have the best business relationship in the sub-region. This is the only neighbouring country where people walk to work across the border and go home at the close of work daily.” “It’s important that we build synergy and foster trade ties between the two countries for far reaching economic benefits,” he added.
He mentioned that Togo has a dual carriageway to Benin under construction which holds great prospects to boost trade between the two countries, adding that the road network at the Ghana and Togo end is not in good state.
Egypt: 10.7% decrease in non-oil trade deficit in 2Q 2023 (ZAWYA)
Egypt’s non-oil trade deficit decreased by 10.7% to $7.5bn during the second quarter (2Q) of 2023, compared to about $8.4bn during 2Q 2022, due to a decrease in non-oil imports. According to the Information and Decision Support Center of the Cabinet, the value of non-oil exports declined to $8.4bn during 2Q 2023, compared to about $9.2bn during 2Q 2022, a decline of 8.7%, while the value of non-oil imports amounted to $15.9bn, compared to about $17.6bn, a decrease of about 9.7%.
According to the report, the value of the non-oil trade exchange between Egypt and the COMESA countries reached $390.7m during 2Q 2023, compared to $306.8m during 2Q 2022, an increase of 27.3%. Libya came at the forefront of the COMESA countries importing non-oil Egyptian commodities by $312.7m during 2Q 2023, followed by Sudan by $137.4m, then Kenya by $78.1m, while Eritrea came as the least importing COMESA country from Egypt by $0.3m.
IMF chief says Africa must do these three things to increase trade (CNN)
When the world’s top finance officials and central bankers gather for the annual meeting of the International Monetary Fund (IMF) and the World Bank later this year, the future of Africa may take center stage. Due to be held in Marrakech, Morocco, in October, it will be the first IMF-World Bank meeting that has taken place on the continent in 50 years.
The continental free trade area offers incredible opportunities for Africa, but there are also challenges. What do we need to do?
Georgieva: What we need to do is to work on three fronts. One, physical connectivity across countries. Two, elimination of trade and non-trade barriers. We did a paper on how the continental free trade agreement can benefit Africa if these trade and non-trade barriers are eliminated and the results are phenomenal: trade within Africa can increase by 53%, trade between Africa and the rest of the world by 15%, and real income per capita could grow by 10%. And of course, three: digital money. Why the need for that? We need physical connectivity. We need every African business, every African institution connected to the internet and that requires coordinated action by governments.
Global Diversity Export Initiative to deepen US-African trade, investment deals (Businessamlive)
The Global Diversity Export Initiative (GDEI) trade mission to South Africa, Ghana, and Nigeria, has reiterated its commitment to deepen and sustain connections between U.S. and African companies in order to foster an enabling environment for increased trade and investment deals.
Marisa Lago, under-secretary of commerce for international trade, U.S. Department of Commerce and former assistant secretary of d’Affaires, U.S. Mission to Nigeria
noted that the GDEI trade mission serves as a foundational means of building business-to-business relationship, between U.S. and African companies, and an important mechanism to foster ties that lead to concrete trade and investment deals.
Speaking on the core reason South Africa, Ghana, and Nigeria were the three African countries selected for the GDEI trade mission, the under secretary explained that the organisation was looking to ensure that it included some of the largest economies on the African continent. She explained further that the move was to partner with countries whose economies had a strong presence in sectors that had strong prospects for U.S. companies.
Africa must increase investment in developing its renewable energy, and attract greater support of the private sector and international financial institutions, if it is to achieve the Sustainable Development Goals, experts meeting in Abidjan stressed Wednesday.
The continent should also control, exploit and transform its enormous mineral resources locally in order to generate the financial resources needed for its development, urged the experts, who represented a dozen African countries, during an African Development Bank workshop held on August 23-24, 2023. The meeting’s theme was Financial Modeling for the Extractive Sector (FIMES).
“Renewable energy gives us opportunities to achieve the Sustainable Development Goals. We also need to be major players in the energy field,” said Dr. John David Cooper, Director of Policy and Research at Sierra Leone’s Ministry of Mines and Mineral Resources. He was speaking on the panel on “Financial modeling for a just energy transition for certain critical minerals in transition countries”.
Rich countries urged to honour $100-billion climate finance goal (SAnews)
United Nations (UN) Secretary-General, António Guterres, has urged developed countries to keep their promises to developing nations by meeting the climate finance commitment of US$100 billion. This is after rich nations made a pledge in 2009 to the less wealthy countries at a UN Climate Change Conference in Copenhagen, Denmark, to assist them in adapting to climate change and alleviate rises in temperature by 2020. Guterres also called on the wealthy nations to double adaptation finance, replenish the Green Climate Fund, and operationalise the loss and damage fund this year.
BRICS
pdf XV BRICS Summit Johannesburg II Declaration - 24 August 2023 (328 KB)
pdf Joint Statement: China-Africa Leaders Roundtable (154 KB)
BRICS welcomes new members in push to reshuffle world order (Reuters)
The BRICS bloc of developing nations agreed on Thursday to admit Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates in a move aimed at accelerating its push to reshuffle a world order it sees as outdated. In deciding in favour of an expansion - the bloc’s first in 13 years - BRICS leaders left the door open to future enlargement as dozens more countries voiced interest in joining a grouping they hope can level the global playing field.
The expansion adds economic heft to BRICS, whose current members are China, the world’s second largest economy, as well as Brazil, Russia, India and South Africa. It could also amplify its declared ambition to become a champion of the Global South.
But long-standing tensions could linger between members who want to forge the grouping into a counterweight to the West - notably China, Russia and now Iran - and those that continue to nurture close ties to the United States and Europe.
The six new candidates will formally become members on Jan. 1, 2024, South African President Cyril Ramaphosa said when he named the countries during a three-day leaders’ summit he is hosting in Johannesburg.
Putin tells African nations Russia can take Ukraine’s place as supplier of grain (The Guardian)
The Russian president, Vladimir Putin, said Russia would remain a “responsible supplier” of food and grain to African countries and could take Ukraine’s place as an international supplier of grain, in recorded remarks to a summit of the Brics countries in South Africa.
He said: Russia has been deliberately obstructed in the supply of grain and fertilisers abroad and at the same time, were hypocritically blamed for the current crisis situation in the world market.
We have repeatedly drawn attention to the fact that in a year under the deal, a total of 32.8m tonnes of cargo has been exported from Ukraine, of which over 70% have reached high and upper middle income countries, including the European Union … only about 3% have gone to the least developed countries, less than 1m tonnes. I have repeatedly said that our country has the capacity to replace Ukrainian grain both commercially and as free aid to needy country’s, especially since our harvest is again expected to be perfect this year.
Foreign Secretary Vinay Kwatra said on Thursday that discussions on trade settlements in national currency have been very positive within the BRICS framework. During a special briefing by the Ministry of Foreign Affairs on the Prime Minister’s visit to South Africa, Kwatra said that BRICS nations have been discussing for quite some time how to put in place a mechanism through which each of BRICS countries can at least start doing trade settlements in the national currencies.
“Conceptually, he added, “Trade settlement in national currency, we have already started working on it, not just as a discussion or a talking point but also on the ground cooperation.” “We are also pursuing trade settlements in national currency with several other countries. So, if it becomes a point of highly advanced discussions in the BRICS and the BRICS countries agree to do trade settlement in national currency, something which is of a great promise within BRICS,” Kwatra added.
China Commits to Promote Africa’s Regional Economic Integration (La nueva Televisión del Sur)
President Cyril Ramaphosa: Welcome remarks at the BRICS-Africa Outreach and BRICS Plus Dialogue
At BRICS Summit, Guterres global unity call in face of ‘existential’ challenges (UN News)
BRICS women business alliance strategic catalysts for economic development (SAnews)
DG Okonjo-Iweala to G20: time to roll up our sleeves and deliver at MC13 (WTO)
While WTO members achieved impressive results at their previous ministerial gathering (MC12) in June last year, securing an unprecedented package of trade outcomes, “we have much more to do, at MC13 and beyond,” the Director-General said at the meeting hosted by the Indian presidency of the G20.
Among the issues WTO members need to focus on for MC13 are WTO reform and in particular reform of the WTO’s dispute settlement system, a key priority for many members; securing the entry into force of the Fisheries Subsidies Agreement and concluding the second wave of fisheries subsidies negotiations; advancing talks on agriculture, where the debate in Geneva so far has shown little progress; and delivering on the development agenda in order to maintain the belief and trust of developing countries in the organization.
“One thing is sure: we should all be ready to roll up our sleeves and work in Abu Dhabi,” she said. The Director-General also told the G20 ministers that deliberative sessions would take place at MC13 to facilitate dialogue on trade and climate change, subsidies, and inclusion. The goal will be to help WTO members better understand each other’s viewpoints on these 21st century issues.
Quick links
An Introduction To The New BRICS Members and 2023 BRICS Summit Analysis
EU injects €120m into West Africa exports
Aviation should be a Catalyst for Africa’s social development
International trade statistics trends in second quarter 2023
WTO: Goods barometer signals upturn in trade backed by strong auto demand
Related News
2023 United Nations Climate Change Conference (COP28): Resources
The 2023 United Nations Climate Change Conference (COP28) convened from 30 November to 12 December 2023 in Dubai, United Arab Emirates (UAE). It saw the first Global Stocktake to assess collective progress made towards meeting the Paris Agreement goals. The global stocktake is a process for countries and stakeholders to see where they’re collectively making progress towards meeting the goals of the Paris Climate Change Agreement – and where they’re not. The programme reflected the sectors and topics raised by stakeholders during consultations, including new actions areas like health, trade, relief, recovery, and peace.
UAE Consensus reached
Nearly 200 nations sealed an agreement on Wednesday, 13 December 2023. The agreement “has the potential to redefine our economies,” summit president Sultan al-Jaber, the chief executive of the United Arab Emirates’ state-owned oil company, said as the deal drew a standing ovation. “It is a plan that is led by the science,” al-Jaber said. “It is an enhanced, balanced but make no mistake, a historic package to accelerate climate action. It is the UAE consensus.”
Download the COP28: The UAE Consensus
Find out more in the Summary of Global Climate Action at COP28
“An agreement is only as good as its implementation. This historic consensus is only the beginning of the road.”
H.E. DR. Sultan Ahmed Al Jaber
President, COP28 UAE
Outcome documents
pdf Outcome of the first global stocktake: Draft decision - 13 December 2023 (revised) (369 KB)
pdf COP28 UAE Leaders Declaration on a Global Climate Finance Framework (238 KB)
pdf COP28 UAE Declaration on Climate and Health (752 KB)
pdf Guiding Principles on Financing Climate and Health Solutions (1.84 MB)
pdf COP28 Declaration on Climate Relief, Recovery and Peace (1.25 MB)
pdf Outcome Statement on Urbanization and Climate Change (292 KB)
pdf Multilateral Development Banks (MDB) Joint Statement (169 KB)
pdf UAE Declaration on Sustainable Agriculture, Resilient Food Systems and Climate Action (751 KB)
pdf COP28 Coalition for High Ambition Multilevel Partnerships (CHAMP) for Climate Action (9.02 MB)
pdf Oil and Gas Decarbonization Charter (756 KB)
pdf COP28 Steel Standards Principles (1.23 MB)
pdf COP28 UAE Global Renewables and Energy Efficiency Pledge (492 KB)
pdf Joint Agreement on the Responsible Deployment of Renewables-Based Hydrogen (10.99 MB)
pdf Global Cooling Pledge for COP28 (1.15 MB)
Background
Climate change and global warming pose significant risks to the global community. Its effects are felt in the physical environment in the form of increasing droughts, floods, wildfires, desertification and rising greenhouse gas emissions, among other things, but importantly also significant economic losses. The impact of climate change is evident in increasing displacement, mass migration, conflict and instability, environmental degradation, and food crises.
In the global effort to address climate change and its negative impacts, world leaders at the UN Climate Change Conference (COP21) in 2015 in Paris reached a breakthrough: the Paris Agreement. It is a legally binding international treaty, currently with 194 Parties, with the following overarching long-term goals:
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To substantially reduce global greenhouse gas emissions to limit the global temperature increase in this century to 2 degrees Celsius (ºC) while pursuing efforts to limit the increase even further to 1.5ºC;
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Review countries’ commitments every five years; and
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Provide financing to developing countries to mitigate climate change, strengthen resilience and enhance abilities to adapt to climate impacts.
Global Stocktake
2023 saw the first global stocktake to assess collective progress made towards meeting the Paris Agreement goals. While Parties to the 2015 Paris Agreement have taken widespread actions to address climate change and its impacts, ambition and implementation must be accelerated rapidly. By evaluating where the world stands when it comes to meeting the goals of the Paris Agreement and using its inputs, the stocktake can help policymakers and stakeholders strengthen their climate policies and commitments in their next round of NDCs, paving the way for accelerated action. Many creative and actionable solutions to overcome challenges are ready to be implemented. IPCC’s Synthesis Report to the Sixth Assessment Report, released in March 2023, is one of the direct and critical scientific inputs to this process.
Technical dialogue of the first global stocktake: Synthesis report by the co-facilitators on the technical dialogue
COP28, IRENA and GRA report: Tripling renewable power and doubling energy efficiency by 2030: Crucial steps towards 1.5°C
Follow-up to COP27
The previous United Nations Climate Change Conference (COP27) closed on 20 November 2022, delivering a package of decisions that reaffirmed their commitment to limit global temperature rise to 1.5 degrees Celsius above pre-industrial levels. The package also strengthened action by countries to cut greenhouse gas emissions and adapt to the inevitable impacts of climate change, as well as boosting the support of finance, technology and capacity building needed by developing countries. One of the key outcomes was the decision on the Sharm el Sheikh Adaptation Agenda: The global transformations towards adaptive and resilient development. An implementation report is available here: Sharm el-Sheikh Adaptation Agenda - Implementation Report 2023
tralac Analysis
COP28 Outcomes: the beginning of the end for fossil fuels or a COP-out?
COP climate summits almost inevitably leave some observers and participants disappointed. COP28, held in Dubai in early December, was no exception. Many commentators have expressed disappointment, especially on the grounds that the final text, approved by all 198 participating parties (197 nations plus the European Union) – is ‘devoid of actionable commitments’.
Sustainable Trade: Insights from Trade Day at COP28
The COP28 Trade Day was the first of its kind for the annual COP conference. Major trade-related organisations, including UNCTAD, the WTO, Dubai Ports World, and the International Chamber of Commerce gathered to address the urgent need for a coordinated and just response to climate change within the global trade landscape. Notable announcements included the introduction of Trade Policy Tools for Climate Action; collaboration with the International Renewable Energy Agency (IRENA) on green hydrogen; and the Steel Standards Principles for decarbonisation.
The global agricultural industry, the second-largest contributing sector to greenhouse gas emissions, must change for the world to meet the Paris Agreement commitments. This was acknowledged by the 134 signatories to the Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action. The declaration is a call to action to address the impact of climate change on food systems and move towards sustainable farming and consumption practices.
Climate and Health at COP28: Treating the Symptoms or Causes?
At COP28 in Dubai, state parties rightly recognised the climate crisis as a health emergency – for the first time – with a Declaration on Climate and Health. COP28 also saw the launch of a new set of Guiding Principles for Financing Climate and Health Solutions, a dedicated Health Day, and over $2.7 billion pledged to health initiatives related to climate change. While these achievements are laudable, the lack of acknowledgement of the role of fossil fuels, specifically, has led to widespread criticism.
Fossil Fables: Reading Between the Lines of the COP28 Oil and Gas Decarbonization Charter
One of the more controversial pledges made at COP28 is the Oil and Gas Decarbonization Charter (OGDC), which calls for the reduction of methane emissions in the fossil fuels industry with the aim of mitigating global warming and the effects of climate change. Critics have called it a diversion from the focus to phase out fossil fuels entirely.
Updates
Highlights from Day 11 - 10 December
COP28’s Food, Agriculture and Water Day saw major announcements on climate action for both water and food security and decarbonization, as countries demonstrated their commitment to implement the COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action.
“To achieve the goals of the Paris Agreement, to keep 1.5C within reach, we must address the connection between global food systems, agriculture, and the climate. At COP28, we have built the foundations for action, which commit 152 countries to transform their food systems, and embedding those commitments in their climate strategies, all the while ensuring they are protecting the livelihoods of those who depend on those sectors. Together, we must build a global food system that is fit for the future. Today marks an important moment in achieving this.” - H.E Mariam bint Mohammed Almheiri, UAE Minister of Climate Change and Environment and COP28 Food Systems Lead
Highlights from Day 10 - 9 December
COP28 and International Energy Agency reaffirm 1.5°C-aligned energy transition
The COP28 Presidency and the International Energy Agency (IEA) High-Level Dialogues concluded with strong consensus on the key elements needed for the energy transition. The Dialogues concluded with clear convergence on the building blocks of a 1.5°C-aligned energy transition and strong support for an ambitious decision on the Global Stocktake at COP28.
Dr. Birol set out an ambitious and integrated package across five pillars for COP28, for which there was strong support in the room: Tripling global renewable energy generation capacity by 2030; Doubling annual energy efficiency improvements by 2030; An orderly decline of fossil fuel use demand by 2030, starting with no new coal plants; Commitment from the oil and gas industry to align their strategies and investment portfolios with 1.5°C, with a focus on a 75 percent reduction in methane emissions by 2030; and Financing mechanisms for a major scaling-up of clean energy investment in emerging and developing economies.
Read more in an IRENA-WTO report: International trade and green hydrogen: Supporting the global transition to a low-carbon economy
Global annual finance flows of $7 trillion fuelling climate, biodiversity, and land degradation crises (UN Environment)
Investing in nature-based solutions provides a strategic and cost-effective avenue to address the interconnected challenges of climate change, biodiversity loss, and land degradation while at the same time making tangible headway towards the sustainable development goals,” said Jochen Flasbarth, State Secretary in the German Federal Ministry for Economic Cooperation and Development, which funded the report. Close to $7 trillion is invested globally each year in activities that have a direct negative impact on nature from both public and private sector sources – equivalent to roughly 7 per cent of global Gross Domestic Product (GDP) – according to the latest State of Finance for Nature report released today at COP28 by the UN Environment Programme (UNEP) and partners.
Highlights from Day 9 - 8 December
COP28’s flagship Youth Day hosted the first ever Youth Stocktake, bringing together thousands of young people from across the globe under the banner of climate action. COP28 President Dr. Sultan Al Jaber said: “This COP is working to build a global legacy and a better future for youth and children. This is a turnaround COP that will ensure full inclusivity is at the heart of the climate process.” Youth, Children, Skills and Education Day convened in Dubai on 8 December, with the COP28 Presidency delivery on its commitment to put young people at the center of climate diplomacy.
UN Climate Change Executive Secretary makes impassioned plea to keep 1.5 alive
We all know the scale of the climate crisis. COP28 must be about solutions to get all countries out of this climate mess. That is my central focus: solutions, acceleration, the highest ambition here at COP, and a springboard for the crucial years ahead. COP28 must deliver a big switch: not just ‘what’ governments must do, but also ‘how’ to get the job done. The technologies and tools all exist. This week negotiators must agree on putting them to work. In short, it’s go-time for governments at COP28 this week. - UN Climate Change Executive Secretary Simon Stiell
Highlights from Day 8 - 7 December
UN climate chief Simon Stiell said on Wednesday that COP28 delegates must take ambitious action on curbing global warming and ending the climate crisis. COP28 continues its work on Friday, also the day talks on an outcome text kick into high gear. Negotiators are aiming to agree on how to bolster emissions-cutting targets set by the Paris Agreement and what to do about the future of fossil fuels like oil, gas and coal.
COP28 in Dubai enters final week, negotiations ramp up on emissions cuts, fossil fuels
Negotiators are aiming to agree on how to bolster emissions-cutting targets set by the Paris Agreement and what to do about the future of fossil fuels like oil, gas and coal. UN climate chief Simon Stiell said that “[w]e need highest ambition, not point scoring or lowest common denominator politics.” UN chief António Guterres has said the Conference of Parties to the UN Convention on Climate Change (UNFCCC), which facilitates these annual conferences, “must commit countries to triple renewables capacity, double energy efficiency, and bring clean energy to all, by 2030.”
African Development Bank Group President Dr Akinwumi Adesina has warned that a new EU carbon border tax could significantly constrain Africa’s trade and industrialization progress by penalizing value-added exports including steel, cement, iron, aluminium and fertilizers. “With Africa’s energy deficit and reliance mainly on fossil fuels, especially diesel, the implication is that Africa will be forced to export raw commodities again into Europe, which will further cause de-industrialisation of Africa,” he said.
“Africa could lose up to $25 billion per annum as a direct result of the EU Carbon Border Tax Adjustment Mechanism,” the Bank President told delegates at the Sustainable Trade Africa Conference held at the UAE Trade Centre in Dubai. “Africa has been short-changed by climate change; now it will be short-changed in global trade,” the Bank President said. “Because of weak integration into global value chains, Africa’s best trade opportunity lies in intra-regional exchanges, with the new Africa Continental Free Trade Area estimated to increase intra-Africa exports over 80% by 2035.”
Highlights from Day 7 - 6 December
Ministerial Meeting on Urbanization and Climate Change
The COP28 Presidency reiterated its call to national governments to fully integrate climate action among all levels of government and collaborate with subnational governments on the design and implementation of new climate plans and policies, including the next round of NDCs ahead of COP30 in 2025. The Outcome Statement sets out a ten-point plan to boost the inclusion of cities in the decision-making process on climate change, drive multilevel climate action and accelerate the deployment of urban climate finance so that cities are prepared and supported to respond to the climate crisis.
The Ministerial followed the first-ever ‘Local Climate Action Summit’ to take place at a COP, where the ‘Coalition for High Ambition Multilevel Partnerships (CHAMP)’ – which calls for local and regional leaders to play a greater role in the formation of Nationally Determined Contributions (NDCs) was published. It has since been endorsed by over 60 national governments.
COP28 announces new partnerships and initiatives to advance sustainable urban development
Over 40 ministers met during the COP28 Multilevel Action, Urbanization, Built Environment and Transport Day, held in partnership with United Nations Human Settlements Programme (UN-Habitat) and the UN Climate Change High-Level Champion for COP28, announcing new initiatives to drive climate action in cities, spanning buildings, waste, transport, water, and nature. Announcements include the ‘Cement and Concrete Breakthrough’ and ‘Buildings Breakthrough’ – part of the broader suite of ‘Breakthroughs’ from COP26 and COP27 – which mobilize governments to finance solutions that are critical to healthier, more sustainable, and more equitable human settlements.
UN-Habitat and partners issue Call for Action for Sustainable Cities (UN-Habitat)
During a session at COP28 called “Closer to Home: Planning the Cities of the Future”, several commitments and announcements were made supporting efforts towards better urban planning and the management of our cities. Cities around the world are battlegrounds in our fight against climate change. The latest IPCC report highlights that integrated urban planning can reduce greenhouse gas emissions by 23 to 26 per cent by 2050. The opportunities for retrofitting and transforming how the cities of the future will be planned and built are enormous.
Development of new Cities’ Science-Based Targets for Nature launched at COP28 (Metabolic)
Today, the Science Based Targets Network (SBTN) announced plans to develop cities-focused science-based targets for nature. Advancing the scope to include cities, alongside companies, the new Cities’ Science-Based Targets for Nature program’s first objective is to create a holistic, science-based target indicators framework that covers the impact of cities on both climate and other natural systems. “This initiative comes as a crucial addition to ongoing efforts in understanding the intricate relationship between cities, climate goals, and the burgeoning realm of nature-related objectives,” said Patrick Frick, founder of the Global Commons Alliance, of which SBTN is a part.
Science-based targets to curb the impact of cities on nature in development (ESG Clarity)
Scientific reports at COP28 show we are heading in wrong direction (WMO)
pdf Global Carbon Budget 2023 (12.65 MB)
pdf WMO’s annual Greenhouse Gas Bulletin (7.02 MB)
pdf Provisional State of the Global Climate 2023 report (7.02 MB)
Related publications:
pdf Measuring climate impact: A draft approach for going from inputs to outcomes (1.39 MB) (World Bank)
pdf Is the Paris Agreement Working? A Stocktake of Global Climate Mitigation (1.90 MB) (IMF)
COP28 is about action, not politics and point scoring, says UN climate chief (UN News)
UN climate chief Simon Stiell said on Wednesday that COP28 delegates are not in Dubai to “score points” and play at “lowest-denominator politics”; they must take ambitious action on curbing global warming and ending the climate crisis. Mr. Stiell’s strong message to government negotiators comes as the latest UN climate conference reaches the halfway mark with agreement on financing for climate adaptation and the fate of fossil fuels still up in the air.
Fossil fuel ‘phase out’ put on table for COP28 climate talks (The Business Standard)
Countries at COP28 are considering calling for a phase-out of fossil fuels as part of the summit’s final deal, according to a draft negotiating text seen on Tuesday. Research published on Tuesday showed global carbon dioxide emissions from burning fossil fuels are set to hit a record high this year, exacerbating climate change and fuelling more destructive extreme weather. A draft of what could be the final agreement from COP28, published by the UN climate body, kicks off negotiations around what is considered the summit’s defining issue: whether countries will agree to eventually end the use of fossil fuels. The draft text includes three options, which delegates from nearly 200 countries will now consider.
Highlights from Day 6 - 5 December
Key measures could slash predicted 2050 emissions from cooling sector
Taking key measures to reduce the power consumption of cooling equipment would cut at least 60 per cent off predicted 2050 sectoral emissions, provide universal access to life-saving cooling, take the pressure off energy grids and save trillions of dollars by 2050, according to a new report. The Global Cooling Watch report demonstrates the potential and the pathways to achieve near-zero emissions from cooling, and provides a call to action for countries to pursue the policies and strategies that have the greatest impact in reducing cooling-related emissions and advancing sustainable cooling for all.
Countries Launch Declaration of Intent on Clean Hydrogen
39 countries launched the COP28 Declaration of Intent on the Mutual Recognition of Certification Schemes for Renewable and Low-Carbon Hydrogen and Hydrogen Derivatives. Recognizing the key role of clean hydrogen in global decarbonization and meeting global energy needs, endorsers of the declaration seek to work toward mutual recognition of hydrogen certification schemes to help facilitate a global market.
Highlights from Day 5 - 4 December
First-ever ‘Trade Day’ puts focus on trade in climate action
Trade can be a powerful tool in the fight against climate change, global leaders said on 4 December as they launched “Trade Day” at the COP28 climate summit in Dubai, United Arab Emirates. This was the first time the UN’s annual climate conference dedicated an entire day to trade, highlighting the growing recognition of the need to put trade front and center in climate action. “Climate and trade policies need to work together,” UNCTAD Secretary-General Rebeca Grynspan said. “As the world is coping with the devastating effects of global warming, it’s time for trade to play its role in shaping climate action that fosters inclusive and sustainable development.”
UNCTAD reports:
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Mapping trade-related measures in Nationally Determined Contributions
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Trade regulations for climate action: New insights from the global non-tariff measures database
WTO Director-General Ngozi Okonjo-Iweala highlighted that the international community remains well short of the Paris Agreement targets. She said that the trillions of dollars of low-carbon investments needed to achieve those targets are now facing higher borrowing costs. Against that background, she stressed that trade can help deliver greater emission reductions for each dollar spent and repurpose harmful subsidies to assist climate action. “The fact is, we cannot get to net-zero without trade because it is indispensable for spreading low-carbon technology to everywhere it is needed,” she noted.
The WTO Secretariat on 2 December launched a 10-point set of “Trade Policy Tools for Climate Action” to present governments with a toolkit to draw from in their efforts to meet global climate targets. The new publication explores how integrating the trade policy options, such as reviewing import tariffs on low-carbon solutions, into national strategies can help economies mitigate the effects of climate change and adapt to its consequences.
Multilateral Development Banks announce over $180 billion in new climate finance commitments through multi-year programs at COP28
Multilateral Development Banks (MDBs) joined together at the COP28 climate summit in Dubai to commit to ambitious climate action and unlock over $180 billion in climate finance. Emerging and Developing Economies will need more than $2.4 trillion annually in climate finance by 2030. These substantial commitments are a strong step forward towards meeting those targets and unlocking the impact capital required to support those on the front lines of the climate crisis. “MDBs and the IMF will have to play a key role in the implementation of the Global Climate Finance Framework launched by UAE along with key world leaders,” said H.E. Mohamed Al Hussaini, UAE Minister of State for Financial Affairs.
Ministers and senior officials convened in a series of discussions to ensure a gender-responsive just transition to support the implementation of the Paris Agreement. The high-level dialogue culminated in the announcement of a new COP28 Gender-Responsive Just Transitions & Climate Action Partnership from the COP28 Presidency, which was endorsed by over 60 Parties. The Partnership includes a package of commitments, including actions on data, finance, and equal opportunities. Implementation will be reviewed at a second convening during COP31.
Highlights from Day 4 - 3 December
On 1 and 2 December, 176 world leaders gathered for the World Climate Action Summit (WCAS), signaling a new era of climate action on the road to 2030. In a complex world, the WCAS provided an opportunity for the international community to unite behind a shared commitment for more expansive and urgent climate action in response to the Paris Agreement’s first Global Stocktake.
COP28 Galvanizes Finance and Global Unity for Forests and the Ocean
During the World Climate Action Summit, H.E. Razan Khalifa Al Mubarak, UN Climate Change High-Level Champion for COP28, unveiled $1.7 billion in nature conservation finance and cemented the role of nature in climate action from COP28 to COP30. Addressing nature-loss can save USD $104 billion in adaptation costs and has the potential to provide upwards of 30 percent of the CO2 mitigation action needed by 2030. A group of philanthropies announced USD $250 million of new finance under the Ocean Resilience Climate Alliance (ORCA), targeting protection for vulnerable marine areas, ocean-based mitigation efforts, and research on climate impacts.
Key business and philanthropy leaders joined with leaders of multilateral development banks and political leaders from emerging economies at COP28 today, to announce a range of initiatives aimed at harnessing the resources of business and philanthropy for climate action. The second day of the inaugural COP28 Business & Philanthropy Forum included key announcements on preserving nature, energy transition alongside a methane abatement accelerator and an initiative to decarbonize health supply chains.
COP28 Business & Philanthropy Climate Forum: Making Sustainability the Growth Story of Our Time
Highlights from Day 3 - 2 December
COP28 World Climate Action Summit
"We need COP to deliver a bullet train to speed up climate action": Simon Stiell at COP28
Finance is the great enabler for climate action. The negotiations must put it front and center. Loss and damage was a win, but we’re kidding ourselves if we think it’s a tick in the box for finance and support at this COP; more is required. We need enhanced transparency, and to deliver our promise to fund climate action across the world.
We’ve said we’ll double adaptation finance – now we have to deliver, including on the details, and set ourselves up to go much further. We must not lose any focus on the Global Goal for Adaptation.
COP28 Presidency launches landmark initiatives accelerating the energy transition
At the World Climate Action Summit today, COP28 President Dr. Sultan Al Jaber unveiled the Global Decarbonization Accelerator (GDA), a series of landmark initiatives designed to speed up the energy transition and drastically reduce global emissions. The GDA is focused on three key pillars: rapidly scaling the energy system of tomorrow; decarbonizing the energy system of today; and targeting methane and other non-CO2 greenhouse gases (GHGs). It is a comprehensive plan for system wide change, addressing the demand and the supply of energy at the same time.
Oil & Gas Decarbonization Charter launched to accelerate climate action
The COP28 Presidency and the Kingdom of Saudi Arabia today launched the landmark Oil and Gas Decarbonization Charter (OGDC) dedicated to speeding up climate action and achieving high-scale impact across the oil and gas sectors. To date, 50 companies, representing more than 40 percent of global oil production have signed on to the OGDC, with National Oil Companies representing over 60 percent of signatories. Signatories have committed to net-zero operations by 2050 at the latest, and ending routine flaring by 2030, and near-zero upstream methane emissions.
A set of new finance commitments to place health at the heart of climate action and accelerate the development of climate-resilient, sustainable and equitable health systems was announced to back up the political commitments in the ‘COP28 UAE Declaration on Climate and Health’, including a USD 300 million commitment by the Global Fund to prepare health systems, USD 100 million by the Rockefeller Foundation to scale up climate and health solutions, and an announcement by the UK Government of up to GBP 54 million.
The Declaration was announced ahead of the first ever Health Day at a COP and joins a series of announcements made during the World Climate Action Summit to keep 1.5C within reach. Endorsed by 123 countries, the Declaration marks a world first in governments acknowledging the growing health impacts of climate change on communities and countries. It also acknowledges the large benefits to people’s health from stronger climate action, including by reducing air pollution and lowering health care costs.
A consortium of multilateral development banks and funders, countries and philanthropies today published the Guiding Principles for Financing Climate and Health Solutions, announced at the World Climate Action Summit. The Guiding Principles establish a shared vision for financing that will rapidly reduce greenhouse gas emissions to improve health, protect people from the range of climate risks to health, and build resilient, environmentally sustainable health systems. They were developed by the COP28 Presidency in collaboration with various stakeholders.
Africa Day
African leaders emphasize need for significantly increased climate action and green growth financing (AfDB)
Amplify the voice of African countries globally and provide a space and platform to highlight the continent’s challenges, opportunities and responses – this was the focus of Africa Day on 2 December 2023. The day opened with a high-level session at which several African leaders called for “increasing climate finance and green growth in Africa”, the theme of the event. "Let’s make our priority investing in the deployment of the continent's abundant renewable resources and processing its essential minerals," Mr Gatete added, "Let us also develop African carbon credit markets, which provide significant opportunities for opening up green finance."
The African Development Bank, which launched a Climate Action Window to mobilize up to $14 billion to support adaptation in 37 low-income countries, highlighted the continent's wealth. "Everything that we have, we have in abundance," said AfDB President Akinwumi Adesina to African leaders and representatives of governments and the private and public sectors.
Highlights from Day 2 - 1 December
COP28 President Dr. Sultan Al Jaber today addressed global leaders at the World Climate Action Summit (WCAS), where he unveiled the COP28 finance agenda, describing it as “innovative thinking… for financing the new climate economy.” In his speech, Dr. Al Jaber launched the COP28 UAE Declaration on a Global Climate Finance Framework in response to the Global Stocktake, and to keep 1.5°C within reach and to meet the goals of the Paris Agreement.
Global agrifood systems are the climate solution, FAO Director-General tells world leaders
The COP28 Presidency today announced that 134 world leaders have signed up to its landmark agriculture, food and climate action declaration. Also announced was the mobilization of more than USD$2.5 billion in funding to support food security while combatting climate change and a new partnership between the UAE and the Bill and Melinda Gates Foundation for food systems innovation in the fact of climate change. The ‘COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action’ addresses both global emissions while protecting the lives and livelihoods of farmers who live on the frontlines of climate change.
Highlights from opening day - 30 November
Extracts from COP28 President Dr. Sultan Al Jaber’s Opening Plenary Speech
[S]ince Paris, we have made some progress. But we also know that the road we have been on will not get us to our destination in time. The science has spoken. It has confirmed that the moment is now to find a new road, a road wide enough for all of us, free of the obstacles and detours of the past. That new road starts with a decision on the Global Stocktake, a decision that is ambitious, corrects course and accelerates action to 2030.
Adaptation must be at the heart of our action. We must bridge the finance gap… and agree on a robust framework for the Global Goal. Let’s put nature, lives, and livelihoods at the core of our national plans. Let’s finally face the issues that are critical to adaptation like water, food, agriculture, and health.
COP28 Presidency unites the world on Loss and Damage
The first major milestone of COP28 was reached on 30 November 2023 with a historic agreement to operationalise the Loss and Damage Fund, whose mandate is to provide financial assistance to developing countries particularly vulnerable to the adverse effects of climate, to support climate change mitigation, and recovery. The initial funding is close to US$429 million. The UAE announced its commitment of US$100 million to the fund. Other countries to make initial commitments to the fund include the United Kingdom ($75 million), United States ($24.5 million), Japan ($10 million) and Germany (also US$100 million).
COP28 talks open in Dubai with breakthrough deal on loss and damage fund
UN Climate Change Executive Secretary at COP28 Opening: "Accelerate Climate Action"
Reports
As greenhouse gas emissions hit new highs, temperature records tumble and climate impacts intensify, this report finds that the world is heading for a temperature rise far above the Paris Agreement goals unless countries deliver more than they have promised. The report is the 14th edition in a series that brings together many of the world’s top climate scientists to look at future trends in greenhouse gas emissions and provide potential solutions to the challenge of global warming. The report calls for all nations to accelerate economy-wide, low-carbon development transformations.
A fair share of climate finance? The adaptation edition - ODI Working Paper
In 2009, developed countries committed to providing $100 billion each year in climate finance by 2020. Despite an urgent need to ramp up financial support for developing countries, the target has yet to be hit. Responsibility for this failure lies on developed nations. But the collective nature of international climate commitments often shields countries with an acute responsibility for missing them. ODI publishes an annual report assessing each developed country’s progress towards paying their ‘fair share’ of the $100 billion target, based on their historical responsibility for cumulative greenhouse gas emissions, gross national income, and population size. This third edition uses the latest 2021 data on international public climate finance flows to evaluate each country’s progress.
Net Zero Roadmap: A Global Pathway to Keep the 1.5°C Goal in Reach, 2023 Update - International Energy Agency
In May 2021, the IEA published its landmark report, “Net Zero Emissions by 2050: A Roadmap for the Global Energy Sector” which set out a narrow but feasible pathway for the global energy sector to contribute to the Paris Agreement’s goal of limiting the rise in global temperatures to 1.5°C above pre-industrial levels. Many changes have taken place since then, notably amid the global energy crisis triggered by Russia’s invasion of Ukraine in February 2022. Carbon dioxide emissions have continued to rise, reaching a new record in 2022. Yet there are also grounds for optimism: the last two years have also seen remarkable progress in developing and deploying some key clean energy technologies. This 2023 update surveys this complex and dynamic landscape and sets out an updated pathway to net zero by 2050.
The Production Gap: Phasing down or phasing up? Top fossil fuel producers plan even more extraction despite climate promises - SEI, Climate Analytics, E3G, IISD, and UNEP
Adaptation Gap Report 2023 - UNEP
Integrity Matters: Net Zero Commitments by businesses, financial institutions, cities and regions - UN
Global Landscape of Climate Finance 2023 - Climate Policy Initiative
Taking Responsibility Towards a Fit-for-Purpose Loss and Damage Fund - UNCTAD
Lagging policy support and rising cost pressures put investment plans for low-emissions hydrogen at risk - International Energy Agency
Global Sustainable Development Report 2023 - Stockholm Environment Institute
Technology and innovation for cleaner and more productive and competitive production - UNCTAD
Civil society
The Dakar Declaration on Climate Change 2023 by the Ministers of the Least Developed Countries
Addressing the Needs of Climate Vulnerable Countries at COP28: A Call to Action from ACT2025
CAN Position: The transition to 100% renewable energy must be just, equitable and rapid
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Taking Uganda-South Africa trade and investment forward (The Independent Uganda)
Latest data from the Bank of Uganda shows that the East African nation and South Africa’s trade volumes increased from merely US $76million in 1999 to US $334million in 2019 before slowing down to US $148.8million in 2022 owing to the effects of coronavirus pandemic.
However, most of these trade volumes are in favour of South Africa because it exports mostly high-value products such as machinery, vehicles, plastics, chemicals, electronics, parts and accessories, petroleum, live animals, books and newsprint, textiles, footwear, aircraft, and household goods. On the other hand, Uganda exports low-value products such as cotton, gold, fish fillets, tobacco, coffee, and fresh flowers.
It is on this basis that Uganda and South African governments have organized for a second leg of trade and investment summit to be held in Kampala next month to actualize deals and initiatives that started during the first summit held in Pretoria, South Africa, in February this year.
Trade cooperation between Angola and South Africa valued at US$29.6 mln (Angop)
Trade cooperation between Angola and South Africa, valued at US$29.6 million is below its real potential, the executive director of the Private Investment and Export Promotion Agency (AIPEX), José Sala, said Tuesday in Luanda. José Sala added thar the two states have the potential to stimulate economic growth and promote regional development, creating more jobs for their citizens.
Speaking to the press on the sidelines of the Angola-South Africa Business Forum, the AIPEX administrator said that the South African investment, valued at US$29.6 million, is the result of seven projects, of which five in the area of service provision, one in the manufacturing sector and another in agro-industry.
José Sala suggested that the governments and companies of the two countries need to work together to facilitate trade and investment, which also includes improving infrastructure and establishing more cooperation agreements.
In recent years, the two states have reinforced bilateral relations with the signing of various commercial agreements, which include cooperation in the oil sector and the suppression of visas in ordinary passports.
Kenya eyes 6.1-month import cover to stop slide in shilling (The East African)
Kenya has set a target to ramp up its foreign exchange reserves to at least 6.1 months of import cover as it looks to provide a stronger buffer to cushion the shilling from external headwinds. This has been revealed in the details of the Medium-Term Plan 4 covering the period 2023 to 2027, the last implementation phase of Vision 2030. The first medium-term plan covered the period between 2008 and 2012.
The latest available Kenya National Bureau of Statistics data shows Kenya’s merchandise trade deficit stood at Ksh303.63 billion ($2.1 billion) between January and March 2023, an improvement from the Ksh328.1 billion ($2.27 billion) deficit reported in the same period in 2022.
The Finance Act 2023 has amended the Miscellaneous Fees and Levies Act of 2016 to introduce the Export Promotion and Investment Levy effective September 1, 2023, geared towards generating funds to boost manufacturing, increase the country’s exports and trim the monthly import bill.
Under the present environment, 6.1 months of import cover translates to about $11.2 billion (Ksh1.6 trillion) in foreign exchange reserves compared to the current $7.3 billion ($1.1 trillion), which translates to 3.98 months of import cover. According to CBK, the statutory reserves threshold is 4.0 months, an
Mining vaccines, and trade, Kenya and Indonesia ink multi-faceted agreements (Business Insider Africa)
Following bilateral discussions between President William Ruto and President Joko Widodo of Indonesia, agreements were reached that will allow Kenya’s Biovax and Indonesia’s BioFarma to work together to develop pharmaceuticals and other vaccinations for easy access between the two nations, as reported by the East African, a news publication with news centered on East Africa.
The most recent development occurs as Kenya’s government pushes for local health product manufacturing to reduce excessive importation and generate employment.
In order to strengthen regulatory collaboration for pharmaceutical goods, the Kenya Pharmacy and Poisons Board and the Indonesia Food and Drug Authority also signed a Memorandum of Understanding.
The two nations also agreed to cooperate in mining and geology, which would involve cooperative research projects, information exchange, and capacity building. Both nations also spoke about investing and trading, as well as working together in both higher and primary education.
In addition, the Kenyan President disclosed that Nairobi and Jakarta were finalizing the specifics of a potential preferential trade pact. “We also discussed the importance of concluding a bilateral investment treaty that will provide a stable and predictable investment environment, which is a prerequisite for accelerated private sector investment. We have tasked our joint teams to complete the drafting of this instrument within the next 90 days,” he said. With a favorable trade balance with Kenya, Indonesia expects to send $580 million (Ksh83.75 billion) worth of commodities to Nairobi by the year 2021, with palm oil serving as the primary export.
ECOWAS Moves to Empower Women through Cross-Border Women in Development Networks (ECOWAS)
The ECOWAS Commission through the Directorate of Free Movement of Persons and Migration organised a meeting for Needs Assessment and Project Identification for Cross-Border Women in Development Networks (WID). The event took place in Accra, Ghana, from the 14th to the 18th of August 2023.
The primary objective of the meeting was to assess the needs and identify potential areas of intervention for women in border communities across ECOWAS Member States. This first phase of the meeting brought together representatives of Women Groups from Benin, Ghana, Guinea-Bissau, and Nigeria.
Mr. Albert Siaw-Boateng, the Director of Free Movement of Persons and Migration at the ECOWAS Commission, delivered the opening remarks on behalf of the Commissioner in charge of Economic Affairs and Agriculture, Mrs. Massandjé Touré-Litse. During his speech, he emphasized the importance of assessing the needs of women in development and exploring possible areas of intervention. He further highlighted the ECOWAS financial grant offered to the Women in Development Networks, which Member States can access to enhance women’s capabilities and provide support for small and medium-scale enterprises.
Report: Big potential for green hydrogen in North Africa (New Era)
By 2050, North Africa could become a leading exporter of green hydrogen with Europe its main market, according to a recent report projecting the future of an industry still in its infancy. So-called green hydrogen is set “to redraw the global energy and resource map as early as 2030, creating a US$1.4 trillion-a-year market by 2050,” according to the report from accounting consultancy Deloitte.
Hydrogen fuel, which can be produced from natural gas, biomass or nuclear power, is considered “green” when hydrogen molecules are split from water using electricity derived from renewables such as solar and wind that do not produce carbon emissions. Less than 1% of the world’s hydrogen production presently qualifies as green. But the climate crisis, coupled with both private and public investment, has sparked rapid growth in the sector.
By 2050, according to Deloitte, the main green hydrogen exporters are likely to be North Africa (US$110 billion per year), North America (US$63 billion), Australia (US$39 billion) and the Middle East (US$20 billion). But the need to meet climate targets and generous subsidies are driving demand for clean energy of all kinds, including green hydrogen.
Sign contracts or lose out, businesses told as AfCFTA takes shape (The Star)
SMEs keen to trade under the African Continental Free Trade Area must have binding contracts in place or else they stand to lose; trade experts now say. This comes as trade under the pact starts to pick, with Small and Medium-sized Enterprises in Kenya and the East Africa Community forming the bulk of entities pushing for deals in the export market , mainly in south and western Africa.
While the continental deal holds huge potential for the SMEs in terms of trade and services, businesses are yet to find a proper footing with deals under the pact remaining low amid numerous challenges.
“Don’t sign business deals without proper procedures…friendly and mutual agreements don’t work. You must sign contracts which are binding,” said Olivier Konje, director of international trade at the Ministry of Trade, Investment and Industry (Kenya). He spoke in Nairobi during a national sensitization workshop for SMEs and women in business on AfCFTA protocols and their relevance to business in the EAC.
The forum by the East African Business Council (EABC) identified Non-Tariff Barriers, lack of harmonised tariffs and lack of access to financing as among major challenges facing business, hence slow uptake of opportunities under the AfCFTA. Meanwhile, EABC has called on improved productivity and standards to ensure goods from the region meet market criteria across the continent, while services fit the market needs.
Africa’s leaders prepare to address climate change challenge (Voice Online)
African leaders are preparing for a major conference in Kenya which will discuss the climate change challenges that face the continent. Climate change experts and environment campaigners will join senior government officials in Nairobi for this year’s Africa Climate Week (ACW 2023) which begins on September 4, The event will focus on how African countries can collaborate and find solutions to the problems that climate change is causing for the continent.
It is understood that the Africa Climate Summit will produce the ‘Nairobi Declaration on Green Growth and Climate Finance’ to drive action among African Union member states and partners leading up to the United Nations Climate Change conference (COP 28) in November.
This week a regional summit on health and climate change was held in Malawi ahead of ACW 2023 to discuss the effects of climate change on the health care systems of many of the continent’s countries. Delegates at the Regional Summit on Health and Climate Change for the African Region called for African leaders to adopt a unified African position on tackling the negative effects of climate change on health sectors.
Technical skills are key in driving African sustainable industrialization (Garowe Online)
Africa remains the world’s least industrialized region, with only one country on the entire continent, this is as per the 2022 data from the United Nations Industrial Development Organization (UNIDO). The report further states that only South Africa is categorized as industrialized. There needs to be a fundamental shift in the structure of the economies of African nations. Industry, especially manufacturing, will have to account for a far greater share of national investment, output, and trade.
It is expected that the African Continental Free Trade Area (AfCFTA) agreement, which will become operational on 1 January 2021, will usher in new and dynamic opportunities by enhancing intra-African trade and fostering an environment that can unlock foreign direct investment in the continent.
The continent is however facing a skills mismatch that has forced most countries to revamp their education systems which over the decades has been geared towards producing white-collar job graduates.
China-Africa trade rises 7.4% in the first 7 months, keeping on expanding this year (Global Times)
China has been Africa’s largest trading partner for 14 consecutive years, and the commerce between the two sides has sustained rapid growing momentum in the first seven months this year, according to China Customs. In 2022, China’ trade with Africa surged by 14.8 percent year-on-year to reach 1.87 trillion yuan ($282 billion), while the amount in the first seven months this year rose 7.4 percent year-on-year to 1.14 trillion yuan, official data showed. The trade index between China and Africa reached 990.55 last year, indicating rapid growing pace, as noted by China Customs.
China is the Africa’s largest export destination. In the past seven months, the nation imported 426.65 billion yuan worth of goods from Africa, including crude oil, iron ore and copper. In the same period, the import of agricultural products increased 20 percent to hit 23.66 billion yuan, including imported aquatic products and wine.
Intra-BRICS Trade and Analysis 2023 (Silk Road Briefing)
2023 is an important turning point in the BRICS development and its future global role. BRICS combined efforts are seen in cooperation and collaboration in developing alternative payment systems to SWIFT, the gradual development of a non-dollar financial system, the development of a common payment system (BRICS Pay), the increase of trade using respective domestic currencies, and creating a common currency. These are all progressing at different timescales, however the use of respective digital currencies in the settlement of future intra-BRICS trade will be a significant move. Russia, China, and India are all poised to launch their digital currencies for common usage by early 2025. This will allow trade to be conducted between them without the global SWIFT network and to reduce threats of the same upon other countries. Brazil and South Africa are close behind. In comparison, the United States and European Union, with rather more complex financial markets, have only recently agreed their digital currency protocols – a technical step the majority of BRICS members completed three years ago.
BRICS is facing many challenges, such as internal differences, global economic growth slowdown, geopolitical tensions, coordination problems, disagreements and different priorities of members, along with external pressures. Economic cooperation within BRICS is still limited, and its cohesion is not especially strong, meaning we can expect an increase in institutionalising the various BRICS initiatives during this summit. There are also likely to discussions concerning BRICS trade liberalization and reducing each other’s import tariffs.
The existing BRICS 2025 strategy, which was implemented in 2020 and will soon be due for renewal, has been useful in developing trade and mutual investment between BRICS countries, strengthening customs cooperation, inclusive growth, and diversifying cooperation into different sectors.
Brics day two: Ramaphosa concerned about financial systems used in wars, stresses use of local currencies (Engineering News)
President Cyril Ramaphosa noted on Wednesday that global financial and payment systems are increasingly being used as instruments of geopolitical contestation. Ramaphosa was speaking during the second day of the fifteenth Brics Summit, currently underway in Johannesburg, where he said global economic recovery relies on predictable global payment systems and the smooth operation of banking, supply chains, trade, tourism and financial flows.
Ramaphosa said South Africa was deeply concerned about global conflicts that continued to cause great suffering and hardship. This came as Russia continued its onslaught on Ukraine and as African countries faced violence.
Meanwhile, Ramaphosa said South Africa would continue discussions on practical measures to facilitate trade and investment flows through the increased use of local currencies. He highlighted that new economic, political, social and technological realities call for greater cooperation between nations and for a fundamental reform of the institutions of global governance for better representation and to be able to better respond to the challenges that confront humanity. “While firmly committed to advance the interests of the Global South, Brics stands ready to collaborate with all countries that aspire to create a more inclusive international order,” he said.
The house of BRICS may be expanding (SAnews)
A decision on the much-speculated possible expansion of the Brazil, Russia, India, China and South Africa (BRICS) group of countries is imminent. This according to President Cyril Ramaphosa who was making remarks during the 15th BRICS Summit currently underway at the Sandton Convention Centre in Johannesburg.
“We stand at the cusp of expanding the BRICS family because it is through this expansion that we will be able to have a much stronger BRICS in these turbulent times that we live in. We await the decision that will be taken by the BRICS leaders in this regard, in due course, as we go on with our Summit.
“We stand at another momentous moment. This is a matter that we are discussing and hopefully we will find a clear solution to this matter as we discuss it among ourselves as BRICS leaders,” President Ramaphosa said.
Speeches
Address by President Cyril Ramaphosa on the occasion of the XV Brics Summit Open Plenary, Sandton International Convention Center (The Presidency)
Full text: Xi Jinping’s speech at the 15th BRICS Summit (CGTN Africa)
Video Address to the Participants in the BRICS Business Forum (President of Russia)
Piyush Goyal’s Jaipur call to the G20: Help the world to withstand any future shock (Hindustan Times)
The G20 is expected to arrive at significant consensus to reform the multilateral trading system, create robust supply chains, promote micro, small and medium enterprises (MSMEs), and help people of developing and least developed countries prosper on the principle of equity, Union commerce minister Piyush Goyal said on Wednesday.
Under India’s Presidency, the G20 is looking for “global good and ensuring good future for the people in the developing and less developed countries”, Goyal added at a press conference in Jaipur ahead of the two-day trade and investment ministerial meeting (TIMM) starting from Thursday.
Quick links
Sustaining existing trade partnerships and finding new markets is imperative for SA agriculture
Namibia: Oil & Gas Discoveries Not Automatic Economic Panacea – Alweendo
Kenya: State Approves Harvesting And Milling Of Mature Sugarcane
Trading under AfCFTA will foster economic, continental integration
Deeper international partnerships will boost Africa’s growth
Internet shutdowns in Africa an impediment to economic growth
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Sustaining existing trade partnerships and finding new markets is imperative for SA agriculture (Bizcommunity)
South Africa is in the enviable position of being a net exporter of agricultural products. Aside from the obvious contribution this makes to SA’s GDP and job creation, this, combined with excellent local production and 2 prior years of record exports, are the main reasons why SA has been able to ensure food security and curb food price inflation compared to the rest of the world.
As SA’s agriculture is export-orientated, the focus must be on safeguarding its seamless continuation. Attention should be centred on improving logistics efficiency, intensifying the promotion of South African products in export markets, and sustaining solid relations with existing critical export markets while securing expansion into new markets.
This is particularly important in the context of growing tensions between the East and the West – as highlighted by the potential loss of SA’s benefits through the United States (US) African Growth and Opportunity Act (also known as AGOA) – and more onerous regulations being imposed by the European Union (EU).
Footwear and leather industry a giant in waiting (Sunday World)
Despite challenges brought on by Covid-19 in many businesses in the country, including the footwear and leather industry, the future looks bright for South Africa in its endeavour to turn its fortunes around. Trade, Industry and Competition deputy Minister Nomalungelo Gina said the shoe and leather manufacturing sector was a beacon of hope to enhance the economy and in the process create jobs.
This week, Gina pointed out at the event hosted by the South African Footwear and Leather Export Council and the eThekwini Municipality Footwear and Leather Cluster in Durban, that it was high time for the industry to turn the tide and focus on manufacturing most sought-after products in the country. The industry that produces footwear, leather, handbags and belts, has also seen declining sales due to counterfeit goods sold by illicit businesses resulting in further job losses.
“We will continue to support this industry through incentives and ensure that the Retail–Clothing Textile Footwear Leather Master Plan 2030 targets are achieved.”
National Entrepreneurship Strategy - South Africa (UNCTAD)
Micro, small and medium enterprises (MSMEs) in South Africa account for over 2 million companies, represent over 98% of formal businesses, and have experienced two-digit growth in the last years.
However, they contribute to creating less than a third of all formal jobs, leaving job creation highly concentrated in a small number of large employers and in the government. In addition, most entrepreneurs enter the ecosystem driven by necessity and the high rates of unemployment. As a result, the majority stay in the informal sector, keeping low growth aspirations and showing a high rate of failure and a low contribution to the creation of formal jobs.
South African youth entrepreneurs face similar challenges as their counterparts in the entire continent as they are hindered by a lack of access to sufficient capital, markets, poor marketing and branding skills, suitable infrastructure (including working space and ICT), as well as business management and educational skills.
Zimbabwean Central Bank starts implementing African payment system (The Zimbabwe Mail)
The Reserve Bank of Zimbabwe (RBZ) has started implementing the Pan-African Payment and Settlement System (PAPSS) aimed at connecting all banks, non-bank financial institutions, switches, and regional systems to enhance cross-border payment across the continent.
The system, expected to save the continent US$5 billion annually in transaction costs, is being promoted by the African Export and Import Bank (Afreximbank) as the settlement bank.
Prior to PAPSS, over 80 percent of African cross-border payment transactions originating from African banks had to be routed offshore for clearing and settlement using international banking relationships. That posed multiple challenges ranging from payment delays to operational inefficiencies and compliance concerns for the disparate regional payment systems. PAPSS, which has been successfully piloted in the six countries of the West African monetary zone, delivers multiple advantages and efficiencies to intra-African trade payments.
Dollar spend on food imports hits 68-month high in March (Business Daily)
Food purchases piled pressure on Kenya’s reserve of foreign currencies, taking close to 17.1 percent of the country’s total import bill in March, the latest from the national statistician shows. The share of food imports was the highest in 68 months, pointing to inflationary pressures occasioned by a crippling drought that depressed local production.
This was the largest share of food and beverage imports since August 2017 when these items took up close to a third of the country’s import bill, the latest data from the Kenya National Bureau of Statistics shows. Kenya spent Sh32.7 billion to import food in May, a drop from Sh37 billion in March.
Trade between India and Tanzania hits $6.4 billion (The Citizen)
Trade between Mumbai and Dar es Salaam has reached $6.4 billion, with Tanzania being described as the focal point of India’s relations with the African continent. According to India’s High Commissioner to Tanzania, Binaya Srikanta Pardhan there are Indian assisted development projects being undertaken in the country valued at $1.2 billion (Sh3 trillion). The envoy was speaking in Arusha during the occasion to mark the 77th anniversary of India’s Independence.
“The Indian Communities in Tanzania are the leading investors in the country,” he pointed out adding that, there are more Indians who have expressed interest to set up more enterprises in the country.
He added: Gold, unwrought or in semi-manufactured forms, or in powder form dried leguminous vegetables, shelled Coconuts, Brazil nuts and cashew nuts are among other products that are highly demanded in India
Nigerian ports can’t develop without fixing obsolete infrastructure, corruption – Nwabunike (The Sun Nigeria)
As a shipping magnate and former president of the oldest freight forwarding association in Nigeria (ANLCA), Tony Iju Nwabunike has said that without fixing infrastructure and fighting corruption, Nigerian ports cannot develop and compete with other neigbouring ports favourably.
In this interview, he pointed out that Nigeria does not need to give any individual or company concession to fix port access roads and other infrastructure in the port, adding that the industry has the capacity to generate billions of dollars and employment but it has been neglected by the Federal Government. He spoke on the danger of the $3.2 billion Customs modernisation project and other related issues as they affect the industry.
Somalia standards body to demand conformity certificates (The East African)
Somalia’s standards body has asked importers to acquire certificates of conformity before bringing goods into the country’s territory, part of a move to abide by global quality requirements for trade.
“The Somali Bureau of Standards, inform all companies, partners, traders (importers, international organizations, UN and all humanitarian agencies) and the Somali community that imports various goods, from all ports, borders as well as airports (country entry and exit points) to acquire the Certificate of Conformity (CoC).
Imports that do not meet the applicable requirements and are not accompanied by the mandatory CoC will be subject to penalty, effective as of September 1, 2023.
On July 22, Somalia’s Minister for Commerce and Industry Jibril Abdirashid Haji Abdi launched an implementation ceremony for the consignment-based conformity assessment between Sobs and Bureau Veritas, a UK-based company dealing with protecting consumers against dangerous, substandard or counterfeit goods through verification of conformity.
Negotiations between the East African Community (EAC) and the Federal Republic of Somalia for the entry of Somalia into the EAC begun in earnest in Nairobi, Kenya today. The nine-day negotiations have brought together experts from the seven (7) EAC Partner States, the EAC Secretariat, East African Legislative Assembly and East African Court of Justice, and their counterparts from the Federal Republic of Somalia.
Kenya’s Cabinet Secretary for East African Community, ASALs and Regional Development, Hon. Rebecca Miano, said that the EAC was keen on an expanded and vibrant bloc, with high volumes of trade within itself as well as with other blocs.
Speaking at the event, EAC Secretary General Hon (Dr.) Peter Mathuki said that joining the community would enable Somalia to benefit from the EAC’s regional infrastructure projects such as roads, railways, and energy networks. “These projects aim to improve connectivity, enhance transportation links, and boost regional trade, ultimately supporting Somalia’s economic development and integration,” said Dr. Mathuki.
Southern African bloc backs $17bn gas infrastructure plan (Engineering News)
A southern African bloc of nations backed a $17-billion natural gas infrastructure plan to bolster energy supplies on a continent where almost half of the population lacks access to power.
The 16-member Southern African Development Community approved the blueprint to invest in infrastructure such as pipelines and terminals for local and imported supplies. While not yet a major source of gas, the bloc is home to some significant discoveries with projects in various stages in Mozambique, Tanzania and South Africa.
With new coal projects unlikely, nuclear power considered costly and climate change threatening hydroelectric generation, “this leaves few options,” according to the plan. The plan still requires funding, at a time when the financing of fossil-fuel supplies grows increasingly challenging due to environmental concerns and a global shift to cleaner sources of energy. Project delays could also present an obstacle, as demonstrated by liquefied natural gas projects by TotalEnergies and Shell in the region that have fallen years behind their initial target to start production.
Japan testing China’s hold on African minerals (Asia Times)
Japan’s Minister of Economy, Trade and Industry Yasutoshi Nishimura has spent a week visiting five countries in southern Africa with Ichiro Takahara, chairman and CEO of the state’s Japan Organization for Metals and Energy Security (JOGMEC). Prior to his departure, Nishimura told Japan’s Sankei Shimbun newspaper that he aimed to secure access to important minerals including rare earths, cobalt, lithium and nickel during the trip.
“I would like to visit each country, sign more than 10 agreements, issue joint statements, realize cooperation agreements and build a supply chain. Budget support of approximately $1.5 billion (215.8 billion yen) for Japanese companies participating in the development of mines and related activities is also available.”
From August 6-13, Nishimura visited Namibia, Angola, the Democratic Republic of the Congo (formerly Zaire), Zambia and Madagascar. Measured against his statements before his departure, the trip was a success.
Japan is known as a reliable investment partner with a high level of technological expertise. It can offer Africa a wider choice of investment partners and, therefore, more bargaining power. As for Africa, in the future, its population will increase the most in the world and its economy will grow, he said. “In particular, there are abundant reserves of important minerals.” He expressed hope that Africa will “join us as a reliable partner.”
Embrace, Challenge, Transform: The Future of Digital Banking And Transacting In Africa (iAfrica)
Banking in Africa is on the brink of its next transformative era. Gone are the days of discussing the Fourth Industrial Revolution as a concept; we are already immersed in a world augmented and powered by artificial intelligence (AI), Big Data, and cloud computing. Now, the next frontier beckons, with generative AI, secure online watermarked fingerprints and cryptocurrencies taking centre stage.
Africa has demonstrated its propensity for embracing technology, particularly in the financial services sector. With around 8 out of 10 people on the continent owning mobile phones and over 570 million people online in 2022, up 470% from 2010 (a significant contrast to the global increase of 159%), access to information and services has become easier. Now more than ever before, digital access to financial services in Africa is at a ripe stage. However, to further and continue this digital transformation journey, we must solve the existing infrastructure challenges, collaborate more and strengthen institutional connections.
BRICS Summit updates
BRICS Business Council adopts trade, investment promotion statement (SABC News)
The BRICS Business Council says it has adopted a trade and investment promotion statement aimed at increasing intra-BRICS trade. The various chapters of the council say this is a 10-year plan of action that includes enhancing trade through bilateral agreements and the exploration of value chain opportunities.
Intra-BRICS trade is said to have been growing at an annual average of 7% over the past 10 years. Other plans aimed at ramping up trade within the BRICS group include developing a BRICS calendar for trade and investment promotional events. BRICS accounted for 7% of global trade in the year 2000 and has grown to about 30% of global trade currently.
“We have now created a model for the world that moves us away from an extractive approach in terms of economic engagement towards a collaborative approach where we can all benefit and why this is important for the African continent. We have the resources in abundance still in our continent, be it the human capital in terms of the youth that we have, be it the minerals resources or other natural resources,” says Busi Mabuza, BRICS business council, South Africa.
Call to accelerate implementation of AfCFTA (SAnews)
BRICS Business Council Chairperson, Patrice Motsepe, has emphasised the importance of accelerating the implementation and advancement of the African Continental Free Trade Area (AfCFTA). Addressing the 15th BRICS Summit in Johannesburg, Motsepe called for a sense of urgency to make sure that trade barriers – both tariff and non-tariff – are significantly diminished and eliminated.
Motsepe stressed that the future of African business depends on its capacity and ability to prove to the rest of the world that it can conduct partnerships, trade, investments as well as the ability to have business relationships that are mutually beneficial.
Last year, trade between BRICS countries totalled some $162 billion. “The potential is enormous but again the sense of urgency is what we need to translate the good ideas that we have; these big plans into effective, legislative policy instruments that allows for effective free flow of goods and services. When we started, we wanted to increase the trade between the African continent and BRICS countries.
“The commitment and the will is there. A market is an opportunity until you invest and sometimes your investment takes five to seven years before you realise value. There is opportunities in terms of what we can do, the magnitude of how we can grow and the magnitude of how we can grow the trade investment and business ties between South Africa, Africa and BRICS countries,” Motsepe said.
Putin says Brics should become trading bloc representing ‘global majority’ (The Guardian)
Vladimir Putin has told a summit of the Brics group of countries in South Africa, that it should become a trading bloc representing the “global majority”. However differences among the group – comprising Brazil, Russia, India, China and South Africa – have become apparent at the summit over accepting new members, and whether to turn Brics into a geopolitical counterweight to the west.
In his recorded remarks to the meeting, Putin blamed the volatility in global markets for food and other commodities on western sanctions, and said that Brics would be a force for fairness in international relations. “We cooperate on the principles of equality, mutual support and respect for each other’s interests,” he said. “This is the essence of the future-oriented strategic course of our association, a course that meets the aspirations of the main part of the world community, the so-called global majority.”
Next wave of global economic growth will come from Africa (SAnews)
China says African countries want industrialisation over infrastructure (Reuters)
Bank of China, IDC sign agreement on R10bn funding package (Engineering News)
Russia willing to cooperate in developing Africa (SAnews)
BRICS expansion: A watershed moment for the global economy (Modern Diplomacy)
BRICS kicks off as common currency, de-dollarization steal the spotlight (Kitco News)
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