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ONE’s newest vessel unloads, loads containers in Durban (Engineering News)
Container and shipping company Ocean Network Express’ (ONE’s) newest vessel Recommendation exchanged 2 578 containers for import with 2 600 containers for export, including refrigerated citrus containers, at the Durban Container Terminal (DCT) Pier 2 during the past week. The terminal deployed adequate resources to efficiently service the four-month-old vessel without interruption and within the stipulated window.
Improved operating and cost efficiency, as well as global competitiveness of the local port terminal network, are among critical elements of Transnet’s Recovery Plan, whose primary focus is the recovery of volumes from key operations and operating divisions across the organisation, said TPT Durban Terminals managing executive Earle Peters.
NGO wants EU-Kenya trade partnership annulled (The East African)
A Kampala-based NGO has gone to the East African Court of Justice seeking orders to block Kenya and the EAC Secretary-General from implementing the Economic Partnership Agreement (EPA) Nairobi signed with the European Union. The Centre for Law Economics and Policy on East African Integration (CLEP-EA), a think tank and research centre, says Kenya violated the EAC Treaty by signing the trade agreement.
CLEP-EA also faults the EAC Secretary-General for “abdicating his responsibilities and functions under the Treaty by failing to warn and/or stop Kenya from entering into the illegal EPA with the EU, and Kenya’s failure to share renegotiated EPA with the partner states.”
The agreement builds on negotiations for an EPA with the EAC partner states at the time – Burundi, Kenya, Rwanda, Tanzania, and Uganda – which were finalised in October 2014. Kenya and the EU signed the EPA on December 18, 2023 and Kenya is the only EAC member to ratify the EU-EAC EPA seeking more access to the European market.
Tanzania urges maize farmers to eye export markets (The East African)
Tanzanian authorities have urged maize farmers to seek markets in neighbouring countries for their surplus. According to the Ministry of Agriculture, the country expects bumper harvest, and the surplus will exceed the preliminary demand assessment of maize, more than 1.2 million tonnes estimated for export markets in neighbouring countries.
National Food Reserve Agency (NFRA) executive director Dr Andrew Komba said the agency was set to start buying maize, rice and other food crops from farmers for storage and selling to local and foreign food markets beginning July. NFRA strategy was to manage food reserves to ensure sustainable supply that would meet both domestic and export needs, the food agency officials said. The agency had opened 14 crop purchasing centres in leading maize producing areas in the southern highlands. Ministry of Agriculture had allocated Tsh300 billion ($115 million) for buying some 300,000 tonnes of food crops during the harvesting season between June and July.
‘We’re constructing an ecosystem’: How a small, windy city could become a gateway for trade (CNN)
Dakhla, a small city in the disputed territory of Western Sahara, which is mostly controlled by Morocco, is located on a long spit of sand between the Atlantic Ocean and a saltwater lagoon. Its consistent wind makes it a hotspot for kitesurfing enthusiasts, but a new port, currently halfway through construction, could turn the area into a gateway for trade.
The $1.2 billion megaproject is expected to complete in 2028. Spanning 1,650 hectares, the complex will include a trade port with an oil terminal, a fishing port and a shipyard. There will be a bridge linking the port to the land and a 7-kilometer road that connects the port with a national highway that runs along the coast as far north as Tangier and as far south as the border with Mauritania.
“We’re constructing an ecosystem,” Nisrine Iouzzi, the director of construction for the Dakhla Atlantic Port, tells CNN. Once operational, she expects the port to handle 35 million tons of goods a year. This will not only boost Morocco’s economy, she says, but it could help the country become a maritime hub for worldwide trade, connecting regions such as West Africa, the Middle East, Europe, North America, the Canary Islands and even South America.
Rwanda Launches Regional Program to Enhance Horticulture Sector (COMESA)
A regional programme meant to boost the horticulture industry in five countries in eastern and southern Africa has been launched in Rwanda. The COMESA, East African Community (EAC) Horticulture Accelerator Programme (CEHA) aims to accelerate the growth of the fruit and vegetable sub-sector in these regions.
CEHA initially focuses on three priority value chains: avocado, onion and Irish potatoes. These specific value chains face agronomic, logistical and regulatory challenges that are common to many other fruit and vegetable crops. Rwanda is the second country to launch the CEHA programme following Kenya.
At the launch of the CEHA Rwanda National Chapter in Kigali on May 23, 2024, ACTESA Chief Executive Officer Dr John Mukuka announced that the program will facilitate the modernization of regional horticulture value chains across East Africa. This will be achieved by leveraging Rwanda’s comparative advantages, infrastructure and technology. The priority crops, selected in 2022 through surveys, were based on production capacity, impact potential, market growth and value chain competitiveness, alignment with government priorities, and the degree of development partner investment.
FDI reaches highest level in decade… fuelled by N$33 billion oil, gas injection (New Era)
Namibia has attracted global attention due to the quantity and quality of its recent oil discoveries in the Orange Basin. These hydrocarbon discoveries have been a major factor for record foreign direct investments (FDI) made via equity injections for exploration activities as well as the uptake of intercompany loans.
Namibia Investment Promotion and Development Board (NIPDB) manager of investment attraction Selma Namutuwa said Namibia attracted N$73 billion in FDI inflows between 2021 and 2023, of which about 45%, which is N$33 billion, is attributable to the oil and gas sector.
“Namibia experienced a notable surge in FDI inflows during the second quarter of 2023, reaching N$13.5 billion. This marked the highest level observed in more than 10 years. The substantial increase was primarily propelled by investments in mineral exploration, hydrocarbons (oil and gas), and the acquisition of Namibia Breweries Limited (NBL) by Heineken,” she said.
Customs to leverage AfCFTA, AGOA to facilitate export trade at Nigerian ports (Eye Witness News)
Eager to align Nigeria Customs with modern tools for customs operations and administration as enunciated by the World Customs Organization(WCO), Adeniyi activated the use of twin modern tools for trade facilitation which are Authorized Economic Operator (AEO) and Advance Ruling concepts. Not done in his passionate efforts to enthrone efficiency in customs operations, Adeniyi said the service is committed to implementing the Lagos Continental Document produced through intensive stakeholders’ engagement and participation at the December CGC conference.
Nigeria Customs strengthens its Rules of Origin competency through an advanced training workshop (WCO)
Under the framework of the EU-WCO Rules of Origin Africa Programme, funded by the European Union, the World Customs Organization, in partnership with the Nigeria Customs Service (NCS), held a national training workshop on rules of origin for Nigeria Customs. The workshop was held in Abuja, Nigeria, from 27 to 31 May 2024 with the objective to assist NCS in enhancing its knowledge and application of preferential rules of origin and contribute to a seamless implementation of the AfCFTA and other relevant FTAs.
This workshop was conducted as part of the comprehensive technical assistance and partnership with NCS in relation to the implementation and launch of an advance rulings system in Nigeria in May 2024, and builds on the acquis from an intermediate training conducted in January 2024. The support provided under the EU-funded RoO and HS Africa Programmes allows for the deployment of all-inclusive and wide-ranging capacity building activities, to enhance the infrastructure and capacity of NCS both on RoO and HS.
Gabon: 2024 Article IV Consultation (IMF)
In August 2023, Gabon underwent a major political transition after a coup d’état had overthrown a decades-long regime. Despite multiple reform attempts, years of poorly managed oil wealth, weak inclusion, and stagnant incomes fragilized the political and socio-economic environment in the runup to the coup. The transition authorities now face a historic opportunity to pivot towards a more transparent and inclusive model of governance, but overcoming decades of entrenched institutional practice will require sustained reform efforts to achieve a point of no return. Meanwhile, the Fund-supported EFF program veered off-track soon after the completion of the first two reviews in 2022 and will expire soon.
African countries reap highest-ever fiscal benefits from tax transparency (OECD)
Launched today at the 15th meeting of the Africa Initiative in Lomé, Togo, Tax Transparency in Africa 2024: Africa Initiative Progress Report shows African countries collected more fiscal revenue through tax transparency, exchange of information and related measures in 2023 than over the 13 preceding years combined.
With EUR 2.2 billion of additional revenue reported by 7 African countries last year, the report makes a strong case for an ever-sharpening political attention on the matters of transparency and international tax co-operation. In total, since 2009, African countries have identified over EUR 3.8 billion in additional revenue as a result of the use of the exchange of information on request (EOIR), automatic exchange of financial account information (AEOI), and voluntary disclosure programmes (VDPs).
China-Africa trade cooperation fosters inclusive, sustainable growth in Africa: UNCTAD official (The New Times)
China-Africa trade cooperation is playing a pivotal role in fostering inclusive and sustainable development across Africa, according to a senior official with the United Nations Conference on Trade and Development (UNCTAD), Xinhua reports.
“The China-Africa cooperation is aligned with UNCTAD’s goals of promoting sustainable development by enhancing Africa’s manufacturing capacities, increasing trade opportunities, fostering economic diversification, and integrating the African countries into the global value chain,” Diane Sayinzoga, UNCTAD’s chief of the Regional Office for Africa, told Xinhua in an exclusive interview.
She said Chinese investments in agriculture, manufacturing, renewable energy development and various other sectors in Africa not only create jobs and boost local economies, but also serve as a platform for technology transfer and increase export and tax revenues.
South Korea agrees to lend billions to Tanzania, Ethiopia (The East African)
Tanzania and Ethiopia said they had signed accords with South Korea for loans of billions of dollars, part of broader deals that will give the Asian nation access to Africa’s crucial mineral resources and vast export market. South Korea is hosting at least 30 heads of state, including Tanzania and Ethiopia, at a South Korea-Africa summit this week.
Tanzania said it will borrow $2.5 billion over the next five years from South Korea through concessional loans. The country also signed two accords on Korean use of its ocean resources and minerals used in clean energy technologies such as nickel, lithium and graphite, presidential spokesperson Zuhura Yunus said on Sunday.
Ethiopia, a fast-growing economy with 126 million people, signed a $1 billion financing deal over four years for infrastructure, science and technology, health and urban development, the state-affiliated Fana media outlet said.
Presidents Ruto, Samia eye trade deals with South Korea (The East African)
East African leaders expect to close trade deals with South Korea during the first-ever Korea-Africa Summit, in which Seoul joins other major capitals such as Washington, Beijing, Moscow, New Delhi, Rome, London and Brussels to invite African leaders. Kenya’s President William Ruto is expected to arrive on Monday evening.
State House in Nairobi said the visit offers Kenya an opportunity to discuss a bilateral deal with South Korea to help balance their trade and investments. “The trip will also set the stage for Kenya and South Korea to initiate negotiations for an Economic Partnership Agreement (EPA) between the two countries,” a dispatch said on Sunday.
Tanzania too is pursuing a similar arrangement and President Samia’s office said on Sunday they had already launched discussions for an EPA. An EPA is supposed to guide on issues of quality, sanitation, taxation and exemptions of exports, as well as decide quotas for imports.
Tanzania sees the EPA as a way to elevate its ties with South Korea as well, to a strategic relationship, and is eyeing investments in the blue economy, development of natural gas, and the creative industry such as film, transport and labour exports.
African countries must develop value chain from production to consumption (GhanaWeb)
Industrialisation and Supply Chain Management expert, Professor Douglas Boateng, has stated that African countries must develop the entire value chain of products and services on the continent for the African Continental Free Trade Area (AfCFTA) initiative to succeed.
The process, which he referred to as “strategic sourcing,” means that individuals should move away from purchasing “cheap products” from abroad and instead add value to indigenous produce. That, he said, would help create a competitive advantage and reduce over-dependence on foreign goods.
To properly develop the value chain, from production to consumption, he noted that Africans must refrain from exporting the continent’s natural resources in their raw state. He said the inability to add value to local resources has led to excessive importation of foreign goods, resulting in “huge amounts of money leaving the continent.”
To create a common market as envisioned under AfCFTA, Prof. Boateng again called for the removal of “artificial borders” between countries to facilitate the movement of persons, goods, and services across the continent.
How Africa can harness critical mineral wealth to revamp economies (UNCTAD)
Africa’s mineral wealth is undeniable. From the cobalt mines of the Democratic Republic of the Congo to the manganese fields of South Africa, the continent boasts a treasure trove of minerals vital for the global transition to low-carbon energy and technological advancement.
The continent is the centre of attraction due to its huge deposits of the world’s reserves of minerals essential for renewable energy technologies like solar panels and electric vehicles: 55% of cobalt, 47.65% of manganese and 5.9% of copper, among others.
As the climate crisis intensifies, the global demand for these critical energy transition minerals could increase almost fourfold by 2030. This accelerating demand presents a unique opportunity for Africa to better harness them to generate more revenues and chart a new course towards prosperity, inclusive growth and sustainable development.
Limited and volatile development finance is holding Africa back, slowing down progress towards achieving development goals. But amid current multiple crises, limited fiscal space, slow growth and high debt, the time is ripe for African countries to turn the tide by seizing the opportunity presented by the critical minerals boom.
India eyes multiple mineral pacts with about a dozen countries in Africa (Business Standard)
India is planning to soon sign new and updated mineral pacts with about a dozen countries in Africa. The Ministry of Mines is in discussions with Côte d’Ivoire, Democratic Republic of the Congo (DRC), Madagascar, Malawi, Mali, Morocco, Mozambique, South Africa, Tanzania, Zambia and Zimbabwe, Business Standard has learnt, and more will be added to the list soon. “We aim to secure India’s mineral supply chain, and African countries have all the minerals we require,” said a senior government official.
Win For SMEs as African Stakeholders Rally For Financing To Drive Inclusive, Sustainable Development (Tuko.co.ke)
Key African stakeholders have called for collective support of Africa’s private sector and small and medium enterprises (SMEs) to drive inclusive and sustainable development in the continent. Speaking during a panel discussion at the 59th Annual Meeting of the African Development Bank (AfDB), Prof Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank and Chairperson of the Alliance of African Multilateral Financial Institutions (AAMFI) “The Africa Club,” underscored the importance of the Alliance’s formation in helping Africa’s private sector.
“The key purpose of the formation of the AAMFI was to create a platform for all of our African multilateral financial institutions to work more closely to attain a common mandate. “These banks already serve complementary roles in financing the continent’s development and the private sector. The formation of the Alliance underscores the collective commitment of its members to support Africa’s self-reliance and private sector,” said Prof Benedict Oramah.
African Development Bank Joins the African Carbon Markets Initiative to Enhance Climate Finance (AfDB)
The African Development Bank has announced its official membership in the African Carbon Markets Initiative (ACMI) as of 30 May. This strategic move is set to empower African countries and the private sector in securing additional resources to combat climate challenges effectively.
Dr. Kevin Kariuki, the Bank’s Vice President for Power, Energy, Climate, and Green Growth, made the announcement during a round table at the 2024 Annual Meetings of the Bank Group, held in Nairobi, Kenya, from 27 to 31 May.
Kariuki highlighted the necessity of financial innovation and the immense potential of raising climate finance through carbon markets. He urged African countries to seize opportunities for trading carbon credits under the Paris Agreement’s compliance markets, where prices for emission reductions are significantly higher than in voluntary markets.
Blueprint for global financial architecture that works for Africa (The East African)
African leaders have finally laid out the blueprint for the financial architecture that many of the continent’s political bigwigs and economists have been calling for, clearly painting the picture that has been at best a silhouette in recent years.
Over the past two years, leaders on the continent, as well as civil societies and economic think tanks, have raised concerns over how the international financial architecture is designed, saying it does not work for Africa. The concerns arose in the aftermath of the recent multiple global crises that drove many African economies to their knees, with many sliding into a high risk of debt distress or default altogether, and government borrowings hitting record highs for many nations.
Africa’s debt stood at $1.152 trillion as of December 2023, which is about half of the continent’s GDP, according to latest figures by the African Development Bank (AfDB). This has been heightened by recent economic shocks.
IFC launches $4bn MSME finance platform for emerging markets (Trade Finance Global)
IFC, a member of the World Bank Group, launched a new initiative to aid financial service providers in delivering funds to small businesses in emerging markets, with a particular focus on those owned by women and those in the agriculture and climate sectors.
The MSME Finance Platform (the Platform) will provide a financing package of up to $4 billion from IFC’s own account to banks, non-bank financial institutions, microfinance institutions, and innovative digital lenders that focus on micro, small, and medium enterprises (MSMEs). This support will be available to both new and existing IFC clients.
The Platform will also use various forms of credit enhancement to mobilise private capital, including an innovative Catalytic First Loss Guarantee, aiming to attract an additional $4 billion in financing from eligible financial service providers to expand lending to these businesses.
In emerging markets, MSMEs and the informal sector are essential to economic growth, job creation, and poverty alleviation. Recent crises have financially weakened financial service providers, limiting their ability to meet increasingly stringent lending requirements. As a result, businesses in emerging markets and developing economies are experiencing a credit contraction due to tighter credit conditions, rising interest rates, and a limited appetite for risk. As the largest development finance institution supporting the private sector in emerging markets, IFC is well-positioned to assist financial service providers.
UNDP and the Global Environment Facility (GEF) launched a new $135 million Blue and Green Islands Integrated Programme (BGI-IP) today during the Fourth International Conference on Small Island Developing States (SIDS4). “With the invaluable support the Global Environment Facility, the Blue and Green Islands Programme will serve scale up nature-based solutions in the food, tourism, and urban sectors that help shift key sectors from nature-negative to nature-positive -- improving the daily lives of people in small islands and helping to revive the health of our natural world.”
SIDS go forward with ‘new sense of hope, solidarity and determination’ (UN News)
Speaking at the closing of the Fourth International Conference on Small Island Developing States (SIDS4), Amina Mohammed stressed that despite increasingly existential threats to SIDS, “we do have reasons for hope and optimism”.
More than 20 world leaders and senior ministers from over 100 nations joined close to 4,000 other participants on the lush campus of the American University of Antigua through the week – together with representatives from the private sector, civil society, academia and youth – to tackle a raft of issues vital to the survival of the 39 SIDS in the face of the climate crisis and other shocks.
The deputy UN chief declared that the adopted outcome, known as the Antigua and Barbuda Agenda (ABAS), presented a “vision for the future that SIDS want and need”.
Ghana Advocates for Financial System to Protect Vulnerable Nations (News Ghana)
Foreign Minister Shirley Ayorkor Botchwey, has addressed a forum of Small Island Developing States (SIDS) in Antigua and, alongside several leaders, advocated strongly for change to the structure of the international financial system to protect vulnerable nations. “Ghana is committed to the fight of the SIDS because it is right, it is necessary, and because we have the moral duty to do so,” Ms. Botchwey told the gathering which included UN Secretary-General Antonio Guttierez, and leaders from all over the world.
“Ghana urges support for the 2022 Bridgetown Initiative for the Reform of the Global Financial Architecture,” said Ms. Botchwey, referring to a global financial policy reform proposal initiated by Prime Minister Mia Mottley of Barbados whose capital city the idea is named after.
“SIDS face high import and export costs for goods and irregular international traffic volumes. Yet, they must rely on external markets for many goods due to the narrow resource base,” a UN office, dedicated to SIDS, Landlocked and Least Developing countries, explains on its website.
Achieving inclusive growth depends on the involvement of all stakeholders in the design and implementation of development work. Such was the main conclusion of the debate under the title “Mobilising civil society to shape Africa’s transformation and reforms of the global financial architecture”, which took place on 31 May on the sidelines of the Annual Meetings of the African Development Bank (AfDB) in Nairobi.
The event was an opportunity to set out the institutional arrangements for involving civil society in the programmes and projects of the Bank. The panel reaffirmed that civil society has a crucial role to play in economic and social transformation in Africa. The involvement of civil society in decision-making brings real benefits, where transparency and equality of opportunity generate an inclusive approach that helps to improve the quality of public projects and programmes, making them better designed and better adapted to the needs of local communities.
Expanding on these points Mavis Owusu-Gyamfi said: “All stakeholders need to adopt a quantitative framework for measuring economic transformation based on five axes which are diversification, export competitiveness, productivity, technology and well-being.” This framework, she said, would make it possible to “guide political decisions and ensure that countries and their institutions are accountable on the basis of reliable data.”
AfDB seeks mutual ties with World Bank (The Zimbabwe Independent)
Unpacking its annual development effectiveness report at the AfDB 2024 annual meetings in Kenya last week, the bank’s senior vice-president Swazi Tshabalala said this year’s report provided the supportive development results of the bank’s global finance projects.
The African Development Bank (AfDB) is pursuing discussions with the World Bank to promote mutual ties in various areas including procurement diagnostic tools and social environment safeguards. This comes as it is simplifying its business processes, and further collaborating with other multilateral development banks (MDBs) to promote mutual reliance.
“These development results represent a collective achievement delivered in collaboration and partnership with other international development banks and development partners, and of course, our client partners,” Tshabalala said. “In this year’s report, we’ve incorporated innovative tools and methods like satellite imaging to better capture and analyse the development impact of our investments. For instance, using high-resolution impact mapping, we were able to assess the impact of bank-financed water and sanitation projects on the living conditions of residents in 28 urban areas in Kenya.”
World Bank Group and IMF Joint Effort to Scale Up Climate Action (World Bank)
The World Bank Group (WBG) and the International Monetary Fund (IMF) are deepening their cooperation through an enhanced framework to help countries scale up action to confront the threat of climate change.
The collaboration will provide critical support for countries’ climate strategies—through an integrated, country-led approach to policy reforms and climate investments. Within their respective mandates, the World Bank Group and the IMF will leverage their analytics, technical assistance, financing, and policy expertise to enhance country-driven reform programs.
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South Africa achieves trade balance surplus of R10.5bn in April (Engineering News)
South Africa recorded a preliminary trade balance surplus of R10.5-billion in April, a the South African Revenue Services (Sars) reports. It attributes this surplus to exports of R169.5-billion and imports of R159.1-billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN). The year-to-date (January 1 to April 30) preliminary trade balance surplus of R26.6-billion was an improvement from the R6.7-billion trade balance surplus for the comparable period in 2023.
On a year-on-year basis, export flows for April of R169.5-billion were 4.2% higher compared with R162.7-billion recorded in April 2023, while import flows were 0.8% higher having increased from R157.8-billion in April 2023 to R159.1-billion in the current period.
Export flows increased in April, driven by platinum group metals, gold and passenger vehicles. Imports flows increased on the back of sizable increases in the importation of petroleum oils (excluding crude), original equipment components and passengers vehicles.
Cars and primary goods dominate the export sector in South Africa (African Business)
Vehicle exports have been a success story and now account for two-thirds of domestic vehicle production. This is to an extent is reflected in South Africa’s trade with China. China is South Africa’s largest trading partner. In 2022 China accounted for 9.4% of South Africa’s exports and 20.2% of South Africa’s imports, according to the South African Revenue Service. South Africa’s exports to China are dominated by two categories: mineral raw materials and iron and steel products.
Mineral exports to China totalled R120.4bn or a massive 63.9% of total exports to China, while the products of iron and steel were R37bn or 19.6% of exports to China. These two categories therefore accounted for 83.5% of exports to China. South Africa has also become a renowned exporter. On the other hand, fruit and vegetables were responsible for a massive 81.1% of South African exports to Russia in 2022, while precious metal exports to the US accounted for 47.3% of exports to the US and vehicle exports were 10.7% of the total.
But there are challenges. South Africa’s manufactured goods cannot compete with the economies of scale enjoyed by Chinese producers, who are the factory of the world in the world’s largest exporter. Bulk exports have fallen since 2017 due to Transnet’s inefficiencies.
Businesses urged to tap into immense AfCFTA opportunities (The Herald)
Zimbabwe has the potential to reap huge benefits under the African Continental Free Trade Area (AfCFTA), with the Government rallying local businesses to embrace high quality standards for goods and services to improve the country’s image and competitiveness on both domestic and international markets.
In the face of artificial intelligence, rapid technological advancement, the effects of climate change and global market dynamics, the need for standardisation has never been more critical, Industry and Commerce Minister Nqobizitha Mangaliso Ndlovu, said yesterday while officiating at the 2024 Standardisation and Business Leaders’ Conference here.
“Our continent is at the apex of a new era of economic integration and growth through the African Continental Free Trade Area (AFCTA). This agreement presents immense opportunities for Zimbabwe and our fellow African nations, to unlock economic potential, increase intra-African trade, and boost industrial development. “For Zimbabwe, it is imperative that we adopt standards, boost the productive capacity of our industries, and manufacture products that are acceptable in regional and international export markets.
Kenya plans to boost exports by 10% annually (Capital Business)
Kenya on Thursday launched a strategic plan that seeks to boost the country’s exports by at least 10 percent annually from the 1 trillion shillings (about 7.7 billion U.S. dollars) recorded in 2023.
Jaswinder Bedi, chairperson of the state-owned Kenya Export Promotion and Branding Agency, told journalists in the Kenyan capital of Nairobi that the strategic plan serves as a roadmap for propelling Kenya to become an export-led economy and a top global brand.
“To achieve the set export growth target, the strategic plan recognizes the importance of exploring new export opportunities across a number of other markets,” Bedi said. He added that the blueprint provides procedures to enable Kenya to expand its exports to Africa, which is already the country’s largest market, by championing the full implementation of the African Continental Free Trade Area (AfCFTA).
Mauritius: 2024 Article IV Consultation (IMF)
Strong Recovery and Challenges. Mauritius has rebounded strongly from the pandemic on the back of buoyant tourism, social housing construction, and financial services. Supportive policies facilitated the strong recovery, but challenges remain for securing a sustainable and resilient economy: (i) fiscal and external buffers were eroded during the pandemic, and (ii) vulnerabilities to climate change and an ageing population loom over the medium- to long-term economic prospects.
From 13 to 16 May 2024, Djibouti hosted a national workshop aimed at updating the national customs tariff, in accordance with the current version of the Harmonized System (HS). Organised within the framework of the EU-WCO Programme on the Harmonized System in Africa (HS-Africa Program), this workshop, funded by the European Union, brought together around 15 customs officials from Djibouti and was led by experts from the World Customs Organization (WCO).
The main objective of this workshop was to raise awareness among the Customs Administration of Djibouti, Contracting Party to the HS Convention, of the importance of aligning the national customs tariff and statistical nomenclature with international standards. It was also a matter of supporting them in the work of updating this tariff. This workshop also made it possible to recall certain key concepts concerning the theoretical and practical aspects of the implementation of the HS 2022.
In his opening speech, the Secretary General of the Djibouti Ministry of the Budget, Mr. Simon MIBRATHU dataunderlined the commitment of the Djibouti Customs Administration to align its customs instruments and tools with international standards, in particular those of the WCO, a global reference in customs matters. He insisted on the importance of customs controls, in particular the verification of the classification of goods, which is an essential pillar for the recovery of customs revenue. These revenues represent a significant part of the state budget of Djibouti.
Ghana Records Gh¢5.3 Billion Trade Surplus 2023 - GSS (Ghanaian Times)
Ghana in 2023 recorded a trade surplus of GH¢5.3 billion driven largely by gold exports, the Ghana Statistical Service (GSS) Trade Report, has revealed. This means that the country exported more products than it imported in the period under review.
The country in 2023 exported products to the value of GH¢186.0 billion, compared with the GH¢180.7 million worth of products it imported. Similarly, the value of the country’s exports increased to GH¢186.0 billion in 2023 from GH¢143.8 billion in 2022 and this represents an increase of GH¢42.2 billion and a 30-percentage points increase over the 2023 value of exports relative to the total export value of 2022.
Speaking at the launch of the GSS Trade Report in Accra yesterday, the Government Statistician, Professor Samuel K. Annim, said the total value of trade for 2023 stood at GH¢366.6 billion representing 43.6 per cent Gross Domestic Product.
African countries could unlock billions in local and global trade (The Conversation)
Despite the continent’s immense resources and untapped potential, Africa’s share of global trade remains small. It is estimated, for instance, that Africa could annually be generating US$21.9 billion more from exports to the world. This limits the continent’s economic growth and ability to lift millions out of poverty.
Trade among African nations is also low, at about 16% of the continent’s total trade volume. This is much lower than intra-regional trade levels in Europe (68%) and Asia (59%).
These statistics have serious implications. Enhancing Africa’s trade within the region and globally could spark development, create jobs and reduce poverty. A host of challenges get in the way of Africa’s trade potential. The continent faces infrastructural deficiencies, cumbersome trade regulations, and inadequate logistical support. These barriers inflate business costs and deter trade within the continent and with the rest of the world.
New financial priorities, goals to promote women’s empowerment (Capital Businiess)
Angaza Forum hosted a dialogue with stakeholders in the financial sector to discuss ways to empower women in the field. This was announced on the sidelines of the African Development Bank Annual Meeting in Nairobi in partnership with the Ellen Johnson Sirleaf Presidential Center. Other participants were Old Mutual Kenya, the Organization of Eastern and Southern African Insurers (OESAI), and New Faces, New Voices—Kenya (NFNV).
Under the proposed ‘Manifesto for African Women in the Financial Sector’, attendees included senior women leaders from banking, insurance, investment banking, microfinance, and fintech. The Nairobi dialogue validated the priorities and goals that were proposed in Kigali towards finalizing the draft for public consultation.
The annual meeting of Intergovernmental Organizations (IGOs) of West Africa will be held in Abidjan, Côte d’Ivoire from 10 to 11 June 2024. It will take place amidst increasingly complex economic, social, environmental and political challenges such as the reduction of fiscal space needed to finance growing development priorities, resulting from the post-COVID-19 crisis, geopolitical and security crises, and climate issues.
Despite these challenges, West Africa continues to demonstrate economic resilience. Indeed, in 2023, the average GDP growth rate in the sub-region stood at 3.4%, compared to 3.9% in 2022. However, forecasts for 2024 and 2025 indicate a gradual recovery in economic activity with an expected GDP growth rate of 4.1%.
In terms of regional integration, West Africa continues to make significant strides, particularly with the implementation of the African Continental Free Trade Area (AfCFTA) despite institutional stability challenges faced by ECOWAS in recent years. To date, all the 15 countries in the region have signed the agreement and 14 have ratified it. Twelve countries are implementing national strategies in collaboration with ECA. For example, Ghana has engaged in the Guided Trade Initiative (GTI) with seven other countries to accelerate the implementation of the AfCFTA, and other countries are also preparing to be part of this initiative.
This year’s meeting will highlight recent progress in regional integration and discuss key sub-regional initiatives aimed at promoting sustainable development. It will also be an opportunity to assess the progress in implementing the recommendations of the 2023 meeting.
Annual Development Effectiveness Review 2024: Africa Demonstrates Resilience Amid Multiple Crises (AfDB)
The latest edition of the Annual Development Effectiveness Review (ADER), released on Thursday, highlights the African Development Bank Group’s critical contributions to the continent’s development priorities in 2023.
Amidst economic turbulence, geopolitical challenges, and climate shocks, Africa has shown remarkable resilience, steadily charting a course back to economic growth. The ADER 2024 report, titled ’Investing in Africa’s resilience and inclusive growth,’ reflects on the impact of recent global crises on the Bank’s member countries and its own operations, and examines the Bank’s contributions to Africa’s development in 2023.
Looking ahead, the Bank’s new and ambitious pdf Ten-Year Strategy 2024–2033 (1.28 MB) outlines the vision of an Africa that is prosperous, inclusive, resilient and integrated. The strategy sets out the Bank’s response to the complex threats facing the continent today and outlines bold plans for accelerating progress on the High 5s through transformational investments.
“This is not a moment for half-measures. As the leading development finance institution on the continent, the Bank steadfastly commits to unlocking Africa’s potential for transformative change, accelerating sustainable development, and building Africa’s resilience, guided by our new Ten-Year Strategy.”
It is essential to find innovative solutions for managing the debt of African countries, taking proactive measures to secure development financing for Africa, according to members of the panel speaking in Nairobi on Tuesday at a side event during the African Development Bank Group’s Annual Meetings, which are taking place in the Kenyan capital from 27 to 31 May.
Albert Muchanga, Trade and Industry Commissioner at the African Union Commission, opened the discussion by warning of the risk of a possible “lost decade for development in Africa” between now and 2034, due to the following major challenges: the debt burden, the shortage of regional integration, the lack of competitiveness between businesses and inadequate economic diversification.
With 60 percent of African countries spending more on debt servicing than health, Mr Muchanga called for action on three fronts: “We need to ensure average growth on the continent of 10%, far higher than the current 3.5%, diversify our exports by developing our manufacturing industry, and strengthen regional integration by working towards a common market that will help harmonize our policies for greater resilience to climate change and to settle the debt issue.”
Related: Nigeria, other African nations need $400 billion annually for structural transformation: AfDB (Peoples Gazette)
Africa’s Economic Leap: AI and Tech Could Add $15 Trillion To The Continent’s GDP (elblog.pl)
Africa is on the verge of an economic transformation, with technology and artificial intelligence (AI) at the forefront. Potential investors see a treasure trove of opportunity within these sectors that could drive the continent’s economy forward in the next decade. Experts predict that tech advancements could contribute over $15 trillion to Africa’s gross domestic product (GDP).
Despite the accelerating growth in the tech and AI industries, Africa faces inherent challenges, specifically relating to its infrastructure. International experts have been working on solutions to this during the GITEX Africa 2024 expo hosted by Morocco, with participation from 130 countries worldwide. Lavinia Ramkissoon, from the United Nations University Policy Research Institute, noted at the event that AI is expected to have a significant global impact on GDP.
Ramkissoon highlighted that AI alone could account for 10% of the global output, which translates to an additional $1.5 trillion to Africa’s current $3 trillion GDP by 2023 – a considerable sum that could reshape the continent’s economy. However, she also pointed out that only eight African countries currently have an AI strategy, which indicates that Africa still has a long journey ahead to fully capitalize on this industry.
To attract the right kind of investments, Ramkissoon emphasized the need for strategic and clear policies. She mentioned the potential of AI to reset the continent’s economies. But to make significant progress, Africa must bridge the growing digital divide that leaves many excluded and unconnected.
Digitalization: it is time to bridge the gap between urban and rural areas (FAO)
The United Nations has a key catalytic role to play in leveraging the power of digital technologies, which is of utter importance particularly in rural areas, for the achievement of the Sustainable Development Goals (SDGs), the Director-General of the Food and Agriculture Organization of the United Nations (FAO) QU Dongyu said today.
“Digitalization is reshaping our world at its very core, and is having a deep impact on our societies and economies, and our mindsets,” he said stressing that digitalization may have a significant positive effect on agrifood systems transformation to make them more efficient, more inclusive, more resilient and more sustainable to serve for four betters: better production, better nutrition, a better environment, and a better life, leaving no one behind.
However, he pointed out that new emerging issues related to safe and ethical use of digital agriculture should be taken into consideration. This is crucial “to ensure a holistic perspective and an open, free and secure digital future for all as outlined by the Global Digital Compact and other key UN led initiatives towards which we are working together.”
AI for Good Summit: Digital and technological divide is no longer acceptable (UN News)
With robots greeting delegates at the entrance to the venue, the AI for Good Global Summit opened on Thursday in Geneva, bringing together thousands of participants from all sectors around the world to discuss the hopes and fears about artificial intelligence (AI) development.
Organised by the International Telecommunication Union (ITU), the annual forum is the place where humans meet artificial intelligence. It is popular to the extent of being oversubscribed for attendance, with the queue to enter stretched for hundreds of metres, along one of Geneva’s biggest conference centres, and internet bandwidth barely coping with the flood of digital information.
The venue has become a showcase for advanced technology, including AI-powered robots, brain-controlled tools, generative AI solutions as well as the hardware, the backbone of the global AI ecosystem. However attractive to the eye and entertaining, the machines are not the highlight of the summit. On the centre stage, both metaphorically and literally, are the people. The two-day summit’s main stage will see a tight line-up of presentations and panels discussing all aspects of human interaction with artificial intelligence, both pros and cons.
New global dataset reveals the hidden costs of international trade and transport (UNCTAD)
The new dataset developed by UN Trade and Development (UNCTAD) and the World Bank provides the first comprehensive global picture of the transport that enables trade, including the costs associated with moving different products between economies.
Launched at the first Global Supply Chain Forum, it draws on official national data available through UN Comtrade. The dataset covers the value and volume of merchandise trade, along with the costs and transport work required per shipment between over 170 economies from 2016 to 2021.
It’s the first time that trade data is paired not only by country and commodity but also by mode of transport, providing new insights into the transportation costs and efforts required by different countries for their imports and exports.
UN Conference on Small Island Developing States delivers new era of resilience amidst SIDS’ crippling debt crisis (United Nations Sustainable Development)
The Fourth United Nations Conference on Small Island Developing States (SIDS4) wrapped up today in Antigua and Barbuda with unanimous support for a bold new 10-year plan of action that will deliver meaningful change for this group of vulnerable countries.
Small island developing States (SIDS) remain a special case for sustainable development because of their unique challenges, from their small size and geographic remoteness to their narrow resource and export base, which makes them vulnerable to shocks and crises.
The Conference closed with the unanimous adoption of The Antigua and Barbuda Agenda for SIDS (ABAS) – a Renewed Declaration for Resilient Prosperity which sets out the sustainable development aspirations of SIDS over the next 10 years and the support required from the international community to achieve them.
“The Antigua and Barbuda Agenda for SIDS, adopted here today, outlines a clear pathway for SIDS to develop smart, context-specific, and inclusive development strategies,” said Li Junhua, UN Under-Secretary-General for Economic and Social Affairs and Secretary-General of the SIDS4 Conference. “The Agenda has the potential to transform the economies of SIDS and put them on a clear path towards sustainable development. Now the real work begins. We are committed to working alongside SIDS to implement the ABAS comprehensively, and with no time to waste.”
Quick links
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G20’s Contribution to Inclusive and Resilient Global Value Chains While Promoting Involvement of Least Developed Countries (Asian Development Bank)
India’s foreign ministry says there are criteria for decision on BRICS enlargement (TV BRICS)
Project to Scale Urban Nature-based Solutions for Adaptation in Africa (SDG Knowledge Hub)
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Supply-side support will be required if South Africa aims to join green industrialisation race (Engineering News)
Stable demand remains a prerequisite if South Africa has any prospect of stimulating industrialisation in the renewable-energy and battery storage value chains, Trade & Industrial Policy Strategies (TIPS) senior economist Gaylor Montmasson-Clair has reiterated. But absent complementary supply-side measures – including tax and financial incentives, as well as an active trade policy – the country will struggle to attract green manufacturing investment in what is now a highly competitive global environment.
In fact, Montmasson-Clair, who is also facilitator of the yet-to-be-launched South African Renewable Energy Masterplan (SAREM), counsels that South Africa will have to prepare a compelling investment case if it is to emerge as a market participant. One that cannot rely solely on rising demand for solar panels, wind turbines and batteries, nor on the country’s natural resource advantages and its current relative attractiveness as a manufacturing location when compared with its peers.
Orange export volumes will be lower than initially expected (Engineering News)
The Citrus Growers’ Association of Southern Africa (CGA) has revised downward its estimates for Navel orange exports this season to 22-million 15 kg cartons. The association initially expected 25.6-million cartons to be exported, but had to revise this estimate by 14.5% following consideration of factors brought up by the Orange Focus Group. The export estimate for this season’s oranges is also 11% lower than that of last year when South Africa exported 24.8-million cartons of Navel oranges.
Navels make up about 17% of the entire South African citrus export volume. The projected export figure of 15 kg cartons of Valencia oranges has also been reduced to just over 56-million, which is a 4% reduction from the estimate at the beginning of the season. It is, however, early in the Valencia season and a further reduction is possible.
EU-Kenya: Council takes final step to allow the implementation of the Economic Partnership Agreement (Council of the EU)
The Council today adopted a decision on the conclusion of the EU-Kenya Economic Partnership Agreement (EPA). This will boost trade in goods and create new economic opportunities, with targeted cooperation to enhance Kenya’s economic development.
“This agreement will strengthen our cooperation with Kenya, the economic hub of East Africa. Workers, businesses and traders on both sides will benefit from this shared commitment to sustainable development, including labour rights, the environment and climate action,” said Belgian minister of Foreign Affairs, European Affairs and Foreign Trade.
The agreement will provide duty-free, quota-free EU market access to all exports from Kenya (except arms) as soon as it enters into force, as well as partial and gradual opening of the Kenyan market to imports from the EU. The agreement includes binding provisions on trade and sustainable development, such as climate and environmental protection and labour rights, and a transparent dispute resolution mechanism. This is the most ambitious economic partnership agreement the EU will have with a developing country when it comes to sustainability provisions.
The EU is Kenya’s first export destination and second largest trading partner, totalling €3.3 billion of trade in 2022 - an increase of 27% compared to 2018.
Kenyan president returns from Washington with $200m for sustainable housing and EVs (Afrik 21)
It has been more than fifteen years since the White House last received an African leader on a state visit. And it is Kenya, a country with sixty years of bilateral cooperation with the United States of America, that has been chosen to renew this diplomatic tradition. During his stay in Washington D.C. from 20 to 25 May, President William Ruto reaffirmed his desire to act as a mediator between Africa and the West. This message was well received by his counterpart Joe Biden at a time when the dual influence of Russia and China is advancing on the continent.
During this presidential trip, the US Development Finance Corporation (DFC) signed a series of agreements with Kenya worth a total of $251 million. In this package of funding, $180 million will be devoted to sustainable housing and $20 million to electric mobility.
Nigeria’s e-commerce value hit $9b in 2023 - Export council (Daily Trust)
The Nigerian Export Promotion Council (NEPC) said that the country’s E-commerce value rose from USD675.68 million in 2022 to USD 9.02 billion in 2023. The Director General and Chief Executive Officer of the council, Mrs. Nonye Ayeni disclosed this at a one-day sensitisation workshop on the implementation of the developed national e-commerce strategy organised by the Federal Ministry of Industry, Trade and Investment (FMITI) in Kaduna.
Mrs. Nonye noted that the country is the 38th largest market for E-commerce ahead of Pakistan and behind Finland with an expected yearly growth rate of 12 per cent between 2021 to 2025. While describing e-commerce as a powerful tool for sustainable growth and development in Nigeria, she noted that it has the potential to unchain new opportunities, create jobs and increase access to markets both locally and globally.
Beira trade corridor to benefit Zambia (Times of Zambia)
Early this month Cabinet, chaired by President Hakainde Hichilema, sat and approved that Zambia signs and ratifies the Beira Development Corridor Agreement (BDCA). The BDCA is amongst the Democratic Republic of Congo (DRC), Malawi, Mozambique, Zimbabwe and Zambia. Once ratified, it will be the fifth corridor agreement that Zambia will have ratified since the New Dawn administration took over office in 2021.
The Beira Corridor undertaking comes just months after the US and European Commission-backed multimillion-dollar Lubito Corridor including the Angola-Zambia railway link project took centre stage. Being a landlocked country surrounded by eight countries, it is envisioned that Zambia stands to highly benefit from regional trade corridors such as the Beira Corridor.
ICAO And Uganda Sign Agreement To Boost Aviation Development (Miirage News)
The safe, secure, and sustainable development of Uganda’s aviation sector will be supported by a new capacity development and implementation agreement with the International Civil Aviation Organization (ICAO).
Under this Management Services Agreement (MSA), ICAO will provide Uganda with a comprehensive portfolio of implementation support products and services, including access to ICAO’s expert roster, project management, and customized training packages. This collaboration will focus on helping Uganda heighten its application of ICAO Standards and Recommended Practices (SARPs), policies, and plans.
The first initiative under the agreement will be the development of a new National Air Navigation Plan for Uganda. This strategic framework will guide the development and implementation of air navigation services and infrastructure in Uganda over the next 15 years, ensuring alignment with international aviation standards. The plan aims to bolster the safety, efficiency, and capacity of Uganda’s air navigation system.
Africa’s biggest salt refinery, Electrochem to start operations in August 2024 (MyJoyOnline)
The Executive Board Chairman of McDan Group, Dr. Daniel McKorley, has announced that Electrochem Ghana Limited will begin processing refined salt in commercial quantities by August this year. Dr. McKorley made the disclosure when members of the Association of Ghana Industries (AGI) visited the project site in Ada in the Greater Accra region.
“We are building one of the biggest refineries in Africa. By August, it should be up and running. This is a product (salt) with high demand. Once we complete the ports and the refinery, we’ll produce for the industry”. He stated that the demand for salt for industries and manufacturing will guarantee the success of the refinery.
“Salt has 14,000 uses, and we plan to produce for both export and local consumption. What we have here is unparalleled—99.9% sodium chloride, intended for serious industrial use. It’s environmentally friendly, and we are not retailing but selling to wholesalers because this is a big factory," Dr. McKorley said.
IMF Staff Concludes Mission for 2024 Article IV (IMF)
Congo’s economic recovery softened in 2023 to reach 2 percent, mainly reflecting an unexpected downturn in oil production, heavy floods, power outages, and weaker public investment. Growth is expected to strengthen to 2.8 percent in 2024, and sustain the momentum in the medium term, primarily driven by the non-oil sector as hydrocarbon production stagnates.
The Article IV consultation focused on safeguarding fiscal sustainability and unleashing the potential for a strong, resilient, and inclusive growth, which rests on steady progress on structural reforms. Policy priorities include improving public finance management, boosting domestic revenue, rationalizing energy subsidies, strengthening governance and transparency, enhancing the business environment, promoting financial inclusion, accelerating economic diversification, prioritizing social spending, and addressing Congo’s climate adaptation and mitigation needs.
Women-owned firms open to intra-African trade than male ones (Capital Business)
Businesses owned by women are more open to intra-African trade than male ones, a new survey shows, highlighting the need for market diversification. The research focused on trade-led industrialization featuring auto, personal care products, clothing, and textile value chains, which offers women and youth support for inclusive value chain industrialization.
These findings are important as state parties are beginning to implement the African Continental Free Trade Area (AfCFTA) agreement. AfCFTA is an ambitious initiative to create a single continental market for goods and services, supported by the free movement of people and capital.
Trade Law Center (tralac) Executive Director Trudi Hartzenberg highlighted progress made by AfCFTA towards supporting women entrepreneurs to take up new trade and value chain opportunities under the Protocol on Women and Youth in Trade to address the systemic challenges faced by women and youth traders.
“From the research findings, we have noted that substantially, women-owned businesses are more likely to focus on intra-Africa trade than the male-owned enterprises,” said Ms Hartzenberg. With support from the International Development Research Centre (IDRC), tralac carried out a gendered analysis of value chains in the AFCFTA, drawing on existing data on trade and value chains. The research survey was conducted with over 500 small, medium, and micro enterprises covering 21 countries in East, West, and Southern Africa.
Standard Chartered commits to supporting clients and businesses to leverage AfCFTA (The Business & Financial Times)
Head, Corporate and Investment Banking at Standard Chartered Bank Ghana Plc, Xorse Godzi, has reiterated the bank’s commitment to collaborating with clients, key stakeholders and policymakers. “With the enormous potential AfCFTA offers, we are committed to collaborating with our clients, businesses, key stakeholders and policy makers to build partnerships between the public and private sectors to realise this opportunity,” he said
The bank aims to build partnerships between the public and private sectors to unlock the opportunities presented by the African Continental Free Trade Area (AfCFTA). According to him, the bank, through its trade desk, offers thought leadership and advisory on AfCFTA to clients and is keen on bringing everyone in the value chain together to understand what is happening and how it can support them.
Mr. Godzi, speaking at the 8th Ghana CEO Summit on the topic “Reigniting business growth under AfCFTA,” also underscored the need for CEOs and business leaders to leverage their influence with the government to shape policy. He underscored the importance of establishing a regulatory framework to facilitate business operations, including initiatives such as providing tax holidays and grants, simplifying customs procedures, and investing in infrastructure, among others.
Niger extends olive branch to ECOWAS with invite to join new alliance (Business Insider Africa)
In September 2023, Niger, Burkina Faso, and Mali formed a regional alliance; the Alliance of Sahel States (AES), outside of ECOWAS which they formerly belonged. They did this with the goal of improving their collective security measures and fostering socioeconomic growth for their populations. Additionally, they did this in the face of sanctions Niger received from ECOWAS.
Despite the disagreements that had led to the formation of the AES, Niger has decided to encourage ECOWAS members to join the group. The Minister extended the invitation at the Annual Meeting of the Board of Governors of the African Development Bank, in Nairobi, Kenya, as seen in a report by Sputnik. This invite follows Ghana and Nigeria’s push for the Senegalese President Bassirou Diomaye Faye to support the reunification of Niger, Mali, and Burkina Faso inside the ECOWAS.
ECOWAS urges Nigeria, other member states to champion investment promotion (Peoples Gazette Nigeria)
The Economic Community of West African States (ECOWAS) has called on member states to promote investment to engender sustainable development in the sub-region. ECOWAS acting director of private sector investment Anthony Elumelu made the charge during a meeting of the technical committee of the Association of Investment Promotion Agencies of West African States (IPAWAS) on Thursday in Abuja.
Mr Elumelu said that the event aimed to allow all member states to shape IPAWAS’ form and structure as the regional platform for cooperation in investment promotion and facilitation. He noted that member states’ continuous support and collaboration with the ECOWAS Commission would enable investors to accept the subregion as the most favoured destination for investment drives.
African economies remain resilient, despite challenges that are testing economies worldwide. According to the latest African Development Bank Group’s African Economic Outlook, 41 countries on the continent are projected to experience stronger growth rates in 2024 than they did in 2023.
The report unveiled at the Bank’s Annual Meetings on Thursday in Nairobi, described Africa’s growth potential as ‘remarkable’. The continent will retain its 2023 ranking as the second fastest-growing region after developing Asia in 2024 and 2025. The theme of the 2024 AEO, “Driving Africa’s Transformation: The Reform of the Global Financial Architecture,” aligns with the Bank’s Annual Meetings’ theme.
African Development Bank President Dr Akinwumi Adesina said while the Bank was proud of the growth projections of many African countries as reflected in the report, it was not blind to the challenges. “Africa’s future is bright, but need to make sure we tackle governance, transparency, accountability, and management of our natural capital. We need to make sure resources are used for the benefit of the people of this continent… The kind of resilience we are talking about cannot happen unless we deal with the issue of climate change.”
With $200 billion invested in development projects across the continent since its establishment in 1964, the African Development Bank Group is leading the charge in transforming Africa’s development landscape, as a solutions bank.At the institution’s 2024 Annual Meetings in Nairobi, six African Presidents joined the Group’s President Dr. Akinwumi Adesina’s call for action to reform the global financial architecture to unlock more resources to scale up Africa’s economic transformation.
Kenya’s President William Samoei Ruto emphasized the need for change, saying, “Today, we assert that transforming the international financial architecture is imperative to give Africa a fair chance to turn its immense potential into opportunities to overcome multiple challenges and develop inclusively and sustainably.”
ECOSOC Committee for Development Policy Contributes to HLPF 2024 (SDG Knowledge Hub)
The Committee for Development Policy (CDP) of the UN Economic and Social Council (ECOSOC) has published a report addressing the challenges and opportunities of innovation ecosystems for development, structural change, and equity. A contribution to the theme of ECOSOC’s 2024 session, the report will inform deliberations during the 2024 session of the UN High-level Political Forum on Sustainable Development (HLPF) in July.
The theme of the 2024 session of ECOSOC and the 2024 session of the HLPF is ‘Reinforcing the 2030 Agenda and eradicating poverty in times of multiple crises: The effective delivery of sustainable, resilient and innovative solutions.’ Titled, ‘Committee for Development Policy: Report on the Twenty-sixth Session (4-8 March 2024),’ CDP’s report updates on the Committee’s triennial review of the least developed countries (LDCs), monitoring of countries that are graduating or have graduated from the list of LDCs, discussion of graduation in the global context, and other activities related to supporting a smooth transition from the LDC category.
AI to add $15trn to global economy: DMCC (Trade Arabia)
Dubai Multi Commodities Centre (DMCC) has highlighted the $15 trillion opportunity brought to the global economy by the widespread use and adoption of artificial intelligence (AI), particularly in highly tradeable sectors. Whilst trade is set to grow by 2.6% in 2024, the anticipated scaling up and adoption of generative AI alongside a wider surge in e-commerce and digital services trade will drive global trade resilience in the years to come, DMCC noted at the Singapore launch event of its latest biennial Future of Trade thought leadership report.
This will herald a paradigm shift in the operating environment, as businesses use AI to optimise supply chains, enhance efficiency and reduce costs through predictive analytics. AI will bring data-driven market insights to capture new business opportunities, and AI-powered trade finance solutions will streamline transactions. The impact will be most prominent in highly tradeable sectors such as computers and electronics, machinery, IT services, transport equipment and electrical equipment – all deeply embedded in international trade and sectors where 90% of current AI-related patent filings are concentrated.
First WTO workshop on customs valuation notifications concludes in Geneva (WTO)
A customs valuation workshop taking place in Geneva from 22 to 24 May brought together 26 government officials from developing and least-developed WTO members. The participants benefited from guidance on preparing their government’s pending notifications to the WTO Committee on Customs Valuation in line with their WTO obligations.
Under WTO rules, members are required to notify developments in national laws and regulations on customs valuation and a checklist of issues regarding their legislation. "This workshop was organised in response to the need to improve the level of WTO members’ notifications regarding the Customs Valuation Agreement," he said.
WTO members hold first formal meeting on dispute settlement reform (WTO)
WTO members met at Heads of Delegation level on 30 May for their first formal meeting on dispute settlement reform, with an initial focus on how to resolve issues regarding appeal/review and accessibility. The facilitator of the process, Ambassador Usha Dwarka-Canabady of Mauritius, said the discussions revealed a “strong appreciation for the dispute settlement system overall” as a core element of the WTO system.
At their 12th Ministerial Conference (MC12) in June 2022, WTO members acknowledged the challenges and concerns with respect to the dispute settlement system, including those related to the Appellate Body, and agreed to conduct discussions with the view to having a fully and well-functioning dispute settlement system accessible to all members by 2024. That commitment was reaffirmed by members at the 13th Ministerial Conference (MC13) earlier this year.
IP and the SDGs: building our common future with innovation and creativity (Times of Malta)
In today’s interconnected world, where global challenges like poverty, inequality, climate change and healthcare persist, the United Nations sustainable development goals (SDGs) serve as a blueprint for creating a better and more sustainable future for all.
At the heart of achieving these goals lies the power of innovation and creativity, driving progress and transformation across various sectors. Intellectual property (IP) plays a crucial role in fostering this innovation ecosystem, propelling us towards a future where the SDGs can be realised.
However, while IP can be a powerful tool for driving progress towards the SDGs, it is essential to ensure that it is used in a manner that balances the interests of creators with the needs of society as a whole. Moreover, it is crucial to recognise the role of IP in promoting international cooperation and technology transfer, particularly between developed and developing countries. By facilitating the exchange of knowledge and expertise, IP can help bridge the technological gap and empower developing nations to address their specific challenges in achieving the SDGs.
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Closest election in 30 years as South Africans vote (BBC)
South Africans are voting in the most pivotal election since the racist system of apartheid ended in 1994, which could see the African National Congress (ANC) lose its majority for the first time in 30 years. As he cast his vote in Soweto, President Cyril Ramaphosa said he had “no doubt” that people would once more show confidence in the ANC. John Steenhuisen, leader of the opposition Democratic Alliance (DA), described the poll as the first opportunity for change in 30 years.
Opinion polls have consistently suggested that the party will lose its parliamentary majority for the first time, forcing it to enter into a coalition with one or more opposition party. “We are entering the next phase of our democracy, and it is going to be a big transition,” political analyst Richard Calland told the BBC. “We will either become a more competitive and mature democracy, or our politics will become more fractured.”
Follow live updates via Bloomberg.
South Africa’s trade and competition minister Patel to exit cabinet after election (Reuters)
South Africa’s trade, industry and competition minister Ebrahim Patel said on Friday he will retire from cabinet after the May 29 national election, the latest longstanding economics figure from the ruling African National Congress to step down from government. President Cyril Ramaphosa appointed Patel as trade minister in 2019. Prior to this, he was the Minister of Economic Development.
Statement by Minister Ebrahim Patel, The Department of Trade Industry and Competition
During the 15 years, the world changed significantly. I entered Cabinet in the wake of the 2008/9 global economic crisis, with the SA economy entering a recession.
In the period since then, the challenge of climate change has become more urgent, geopolitical tensions are sharper, volatility is now baked into economies and technological innovation and the rise of artificial intelligence is reshaping our world. During this period we saw state capture locally and the fight against it, the biggest pandemic in 100 years leading to the deepest recession globally since the second world war, war in Europe that led to food, fuel and fertilizer price spikes, continued conflict around the right of Palestinians to statehood, and droughts, floods and unsettled weather patterns.
And yet, within this period we have seen considerable progress too, with careful navigation by firms and policy-makers to get the economy back on a growth trajectory and jobs recovery.
Duties are charged in cedis – GRA (The Business & Financial Times)
The Ghana Revenue Authority (GRA) has announced that duties and taxes imposed on imported vehicles are always done in Cedis and not dollars or any other foreign currency, contrary to speculations circulating in some media setups. In an official statement signed by the Communication and Public Affairs directorate urging the public to disregard such claims, GRA outlined the process for calculating duties and taxes on imported vehicles.
According to the GRA, the calculation of import duties on the vehicles begins with determining the Cost, Insurance and Freight (CIF) values from the country of origin.
According to management of GRA, duties and taxes imposed by the Customs Division are strictly in accordance with the Customs Act 2015 (Act 891). They assured the public that GRA is dedicated to their mandate of mobilizing revenue with integrity, fairness and transparency.
China accounts for half of foreign direct investment in Ethiopia (Peoples Gazette Nigeria)
Ethiopia attracted $3 billion in foreign direct investment in the first 10 months of the current Ethiopian Fiscal Year 2023/2024, which started July 8, 2023. Hanna Arayaselassie, chief commissioner of the Ethiopian Investment Commission, said the commission planned to attract $3.5 billion in FDI in the current fiscal year, ending on July 7, 2024.
“The figure is a bit short of the FDI inflow target set for the first 10 months of the Fiscal Year 2023/2024, but exceeded that of the same period 2023,” said the commissioner. Ms Arayaselassie said although sizable investments have come from other parts of the world, China has been the top source of foreign direct investment in Ethiopia, adding that “China’s investment is accounting for almost 50 per cent of all FDI inflow into the country.”
Second-hand clothing drives $73.5m economic impact in Africa (Just Style)
The affordable clothing options provided by SHC sellers also empower citizens from low-income households to access essential apparel items.
The study, titled “Job Creation in Africa’s Second-hand Clothing Sector”, was commissioned by the Humana People to People development network. It estimates the SHC trade contributes more than $73.5m annually in tax revenues, funds that support critical public services and infrastructure across just five African nations – Angola, Guinea-Bissau, Malawi, Mozambique and Zambia.
In February 2022, concerns were raised about the negative impact of the second-hand clothing trade with sub-Saharan Africa, hobbling the development of the region’s clothing and textile sector, while some experts warned its removal would not be easy. However, Humana People to People’s study found that with each tonne of imported used clothing sustaining an average of 6.5 jobs, the SHC workforce represents up to 25% of total services employment in these countries.
CEMAC: Oil and gas drive 4.9% decline in Q1 2024 energy export prices (Business in Cameroon)
Energy product prices exported by Cemac countries continued their decline, dropping by 4.9% between Q4 2023 and Q1 2024, following a 1.8% decrease in the previous quarter. The latest Composite Index of Commodity Prices (ICCPB) from the Central Bank of Central African States (Beac) attributed this downturn to weakening prices in the global oil and natural gas markets.
Explaining the drop in prices, particularly for crude oil, Beac cited “slowing global demand, coupled with increased non-OPEC supply, and high levels of US inventories.” Regarding natural gas, the price decline resulted from “a combination of factors, including very high European stocks, robust production in the United States, and moderate demand due to favorable weather conditions.”
Kenya to inject $100m in AfDB, two other African multilateral lenders (The East African)
Kenya will increase its shareholding in three key African financial institutions, including the African Development Bank (AfDB), by $100 million as a show of confidence in efforts to solve the continent’s problems.
President William Ruto on Wednesday said at the opening ceremony of the AfDB annual meetings in Nairobi that the extra capital injection would also go to the Cairo-headquartered African Export-Import (Afrexim) Bank, and the Bujumbura-based Trade and Development Bank (TDB).The new investments are meant as a show of confidence in the institutions to help mobilise more financing from within and beyond the continent, according to Dr Ruto.
“Nations in this continent, we must begin to understand that if others are to believe in our institutions, we must believe in them first, as the owners...We must believe in ourselves for others to believe in us, and we must invest in these institutions for others to invest in them,” he said.
Since the Dakar 2 Summit, six African countries have set up Presidential-level Councils to drive implementation of the Country Food and Agriculture Delivery Compacts agreed at the summit, while another twelve countries are at various stages of establishing their councils. At that summit, $72 billion was mobilised for agriculture development and transformation across Africa. Now the Bank has committed to invest $2.9 billion to support these Compacts, and also appointed two Special Envoys to coordinate and support the Presidential Delivery Councils.
African Development Bank Group president, Dr Akinwumi Adesina announced this on Monday 27 May, in Nairobi, Kenya, at an event on the sidelines of the 2024 Annual Meetings, to take stock of the progress made since the Dakar 2 Summit which was convened by the Bank and the Senegal government in January 2023.
Adesina concluded with five important “needs” required for agricultural transformation in Africa: the need to raise agricultural productivity; the need to significantly expand private sector financing for agriculture; the need for younger farmers in the agriculture sector; the need for significant policy support to de-risk agriculture financing; and the need for effective collaboration and cooperation.
The African Development Bank Group unveiled its new pdf Ten-Year Strategy 2024–2033 (1.28 MB) today, a blueprint to confront Africa’s pressing challenges and to help put the continent firmly back on track towards sustained economic growth and prosperity.
Unveiling the strategy during the Bank Group’s Annual Meetings in Nairobi, Kenya, African Development Bank Group President Akinwumi Adesina said, “As Africa’s premier development finance institution, and Africa’s solutions bank, we are acutely aware that the next decade will be decisive in transforming the continent.
The strategy, approved by the Board earlier this year, sets out decisive and urgent actions the Bank will take to support African countries navigate the unprecedented global and regional challenges. These actions will build on Africa’s multiple unique assets and reignite momentum towards achieving the African Union’s Agenda 2063
“The Ten-Year Strategy outlines how the Bank will invest in Africa’s best asset: its vibrant young men and women. Africa’s population, which is the fast growing in the world, presents the continent with an unparalleled demographic window of opportunity,” Adesina said.
African financiers have outlined how the recent pandemic, COVID-19, and the challenges of the climate crisis have provided opportunities to transform the continent. Speaking at an event organised by Moody’s on the sidelines of the Africa Development Bank Annual Meetings in Nairobi, they concluded that Africa has great potential to build resilient and successful economies despite the climate crisis which has already led to extreme weather conditions across the continent.
“We need good governance and ease of doing business so global investors are comfortable to come in, we need African countries to come together to share best practice and we need to discuss how Africa can up its game. The pandemic presented us with opportunities to rethink and restructure our economy and now we’re reaping the benefit of that,” Governor of the Bank of Mauritius Harvesh Seegolam said.
There is room for all to benefit in re-designing global financial architecture (The New Times)
President Paul Kagame has said that the world should come to a point of action to redesign the global financial institutions’ architecture given that there is room for everyone to benefit. On May 29, during a Presidential Dialogue at the five-day AfDB Annual Meeting, in Nairobi, Kenya, President Kagame said that it is a no-brainer that things that were designed 50 years ago cannot work now. “Things have changed and a re-think of a new design that fits the purpose must be into play. There is no question about it,” he said, adding that the task at hand is finding the pathway to implementation.
“Africa’s interests must be taken care of, beginning with ourselves...it has to be with one voice but also loud, clear, and effective. For that to happen, we think about working together and representation,” he said, adding that it is about self-representation with loud voices rather than just numbers. “The reform we are talking about is how to disrupt the current architecture so that it includes significantly and visibly the interests of our continent.”
The 9th Annual Global Conference on Energy Efficiency, held on 22 May 2024, has gathered key leaders and stakeholders from around the world in Nairobi, Kenya to discuss the future of energy efficiency.
In her opening remarks, Commissioner Abou-Zeid highlighted the importance of energy efficiency as the one of the major solutions to Africa’s pressing energy access gap, particularly concerning the lack of electricity and clean cooking solutions. “With over half a billion people in Africa lacking electricity and almost a billion lacking clean cooking facilities, energy efficiency stands as the primary fuel for progress” she stated. It not only offers a pathway to modern energy services but also aligns with climate action objectives. She added: “By optimizing energy usage, efficiency initiatives reduce costs, enhance business and industrial competitiveness, and foster energy equity.”
RMB says Indo-Africa trade corridor booming, expected to hit $100bn by 2025 (IOL)
South Africa’s corporate and investment bank, RMB, yesterday said the Indo-Africa trade corridor had surged to a staggering $95 billion (R1.75 trillion) in size, showcasing a dynamic and growing economic partnership between the regions. Ritesh Sharma, head of foreign investment and trade for RMB’s India team, said this marked a significant increase from only $5 billion in 2002, highlighting the corridor’s impressive trajectory.
Sharma noted that while the initial trade focus was on energy products, the corridor had witnessed remarkable diversification in recent years. “By our estimation, we expect the value of trade in the corridor to hit $100bn next year… India’s exports to Africa now encompass a wider range of products, including agri-products like rice, wheat and meat ($8bn), pharmaceuticals ($4.5bn) and automobiles ($4.2b). Projects, machines, iron and steel, electronics and yarn/clothes are other significant and growing categories.”
Ghanaian President H.E. Nana Addo Dankwa Akufo-Addo, Prime Minister of The Bahamas H.E. Hon. Philip Davis, Prime Minister of Barbados Hon. Mia Mottley, and Guyana President H.E. Mohamed Irfaan Ali, will be among the leading top headliners at the 31st Annual Meetings (AAM) of the African Export-Import Bank (Afreximbank) and the 3rd AfriCaribbean Trade and Investment Forum (ACTIF), which are taking place jointly in Nassau, The Bahamas, from 12 to 14 June 2024.
The three-day AAM and ACTIF, which is being held under the overarching theme ‘Owning our Destiny: Economic Prosperity on the Platform of Global Africa’, will feature keynote addresses, panel discussions, plenaries and fireside-type conversations. These will focus on discussing and determining solutions to the challenges that affect African – Caribbean economies, the policy issues required to promote growth, development and prosperity across Africa and the Caribbean, and how to accelerate intra-African trade and investment flows, including with the diaspora.
AAM and ACTIF are attended by business and political leaders, banking industry professionals, trade and trade finance practitioners and other parties involved in economic development from across Africa, the Caribbean and beyond. The Meetings, which have been ranked among the most important gatherings of economic decision makers in Africa and CARICOM, are covered by the African, Caribbean and international media.
A detailed programme of the event is available at: https://2024.afreximbankevents.com/programme/
India may not favour immediate re-opening of BRICS membership, say sources (BusinessLine)
India is worried about several countries, such as Thailand, Bangladesh and possibly Turkey, queuing up for membership in the BRICS grouping immediately after six nations were allowed entry into the bloc in January this year. It is trying to prevent an immediate re-opening of membership and wants a gap, preferably of five years, before more members are admitted, sources have said.
“New Delhi wants a gap of about five years before admission of a second group of countries into BRICS is considered as it believes that a minimum time would be needed for the bloc to adjust its functioning after admission of the six new members on January 1 2024. It has emphasised this in recent meetings of senior officials and sherpas,” a source tracking the matter told BusinessLine.
With more than 30 countries queued up for admission, the issue of further expansion of the BRICS is likely to come up in the meeting of BRICS Foreign Ministers in Nizhny Novgorod, Russia, on June 10-11.
China-Africa cooperation will continue unhindered by external noise: African envoys (Global Times)
Cooperation between China and Africa will continue to expand under a series of initiatives, including the Belt and Road Initiative (BRI), despite certain external forces’ attempt to undermine China-Africa ties, several ambassadors of African countries to China said in a recent interview with the Global Times.
In recent years, China-African trade has flourished, with the BRI yielding significant results. This year marks a significant year for China-Africa relations, with a new session of the Forum on China-Africa Cooperation (FOCAC) to be held. China aims to use the FOCAC as an opportunity to deepen cooperation under the BRI and the three major global initiatives, fostering a higher-level China-Africa community with a shared future, according to Chen.
Experts share how national plans can help Commonwealth member states combat plastic pollution (The Commonwealth)
The Commonwealth Clean Ocean Alliance (CCOA) is propelling global efforts to combat plastic pollution, a growing menace to our oceans and environment. As part of its ongoing Blue Dialogues webinar series, the Commonwealth Blue Charter programme recently convened a virtual event titled, National Action Plans to End Plastic Pollution.
This timely discussion, hosted in partnership with the CCOA and Common Seas, focused on the development and implementation of national strategies to tackle this pressing environmental challenge. The webinar brought together policymakers, researchers, and environmental advocates from across the Commonwealth, a testament to the organisation’s longstanding leadership in promoting sustainable development and environmental conservation.
Heidi Prislan, Blue Charter Adviser at the Commonwealth Secretariat, stressed: “The urgency to address plastic pollution is paramount. While global agreements are crucial, national action plans are essential for driving tangible progress within Commonwealth member states.”
Climate change, fighting hunger, and global governance reform: President Lula highlights Brasil’s proposals for the G20 during meeting with the president of Benin (G20 Brasil 2024)
The priorities of Brasil’s G20 presidency were addressed by President Lula on Thursday (23), in Brasilia, during a meeting with the President of Benin, Patrice Talon. The Brazilian leader reiterated the strategic agenda of Global South countries this year at the forum that brings together the world’s largest economies. “Although we are not historically responsible for climate change, we must fight alongside each other for the expansion of climate finance targets at the Baku COP, and for the adoption of more ambitious NDCs at the Belém COP in 2025,” highlighted Lula.
In addition to climate change, President Lula also addressed the other priorities of Brasil’s G20 presidency, reiterating the Global South countries’ strategic agenda. “Alongside the African Union—who is participating as a full member for the first time—we have been warning about the debt issue. What we are seeing today is an absurd net export of resources from the poorest countries to the richest countries,” stressed the president of Brasil.
The President reported that the G20 International Financial Architecture Working Group (IFA) is going to promote a debate with African experts in June—the results of which will be taken to the subsequent G20 Finance Ministers meeting. Lula also mentioned the proposal to tax billionaires presented by minister Fernando Haddadat a meeting of the G20 Finance Track in January, in São Paulo.
Fossil fuel subsidy reform meeting advances work plan after MC13 (WTO)
WTO members participating in the Fossil Fuel Subsidy Reform (FFSR) initiative discussed how to make progress on concrete action steps outlined in the 2024-2025 work plan at a meeting held on 28 May. This work programme, adopted at the 13th Ministerial Conference in February, covers three key areas: enhancing transparency, tackling energy crisis support measures, and identifying and addressing harmful fossil fuel subsidies.
In the face of growing challenges posed by unhealthy diets, all forms of malnutrition, and environmental constraints, the 2024 Global Food Policy Report (GFPR) — released by the International Food Policy Research Institute (IFPRI) — underscores the importance of transforming complex global food systems to ensure sustainable healthy diets for all.
“To meet our ambitious global development goals on diets and nutrition, we need innovative research across the food system that informs and supports large-scale equitable impacts. People and the planet are at the heart of our efforts, and so our priorities for research and action center on understanding how to make sustainable healthy diets aspirational, affordable, and accessible for all,” commented Ismahane Elouafi, Executive Managing Director, CGIAR.
WTO members review farm policies, discuss food security, transfer of technology (WTO)
At a meeting of the Committee on Agriculture on 23-24 May, WTO members reviewed the progress of various issues under the Committee’s work mandate, as well as high-interest topics such as food security, technology transfer and transparency. Members also continued the regular peer review of each other’s farm policies to ensure compliance with WTO disciplines. A counter-notification regarding one member’s domestic support was also discussed.
Translating critical raw materials demand into development (WEF)
Demand for critical raw materials is surging due to their role in clean energy technologies, with projections indicating potential supply shortages. Developing countries, particularly in Africa, which holds 30% of global mineral reserves, are key sources of these minerals. Sustainable mining and leveraging natural resources for economic advancement are crucial. Significant investment and tailored national policy approaches are needed to support this green industrialization pathway.
To address supply-demand gaps in critical raw materials, countries are forming state-to-state partnerships to foster new projects and ensure supply resilience. A World Economic Forum white paper unpacks the various models the deals pursue and priorities for developing countries to achieve sustainable and economic benefits through these partnerships.
All nations want to master and benefit from their energy resources and the energy transition. Scaling up critical mineral supply offers significant opportunities but countries must consider where to integrate into clean technology value chains.
Developed countries provided and mobilised USD 115.9 billion in climate finance for developing countries in 2022, exceeding the annual 100 billion goal for the first time and reaching a level that had not been expected before 2025.
According to new figures from the OECD, in 2022 climate finance was up by 30% from 2021, or by USD 26.3 billion. This is the biggest year-on-year increase to date and means that the 100 billion mark was reached a year earlier than the OECD had previously projected, albeit two years later than the initial target date of 2020.
Quick links
Why Is It Still so Difficult to Travel within Africa? (okayafrica)
Embracing Africapitalism: Path to sustainable development and economic empowerment (MyJoyOnline)
India ‘AI mission’ investment to double, digital economy to touch $1 trillion mark (CoinGeek)
Are these 5 trends disrupting or driving logistics growth? (WEF)
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South African food inflation continued a downward trend in April (Engineering News)
In April, for the second month in a row, year-on-year (y-o-y) South African food and non-alcoholic beverage (NAB) inflation (hereafter to be referred to as food inflation, for short) ran at a rate below that for consumer price index (CPI) headline inflation, the Bureau for Food and Agricultural Policy (BFAP) has reported.
April was also the fifth consecutive month which recorded a decline in food inflation. The food inflation rate in April was 4.7%, while that for CPI headline inflation was 5.2%. Food inflation contributed 0.9 percentage points to CPI headline inflation in April. (Y-o-y food inflation in March had been 5.1%.)
For the first time in many months, the BFAP did not list loadshedding (scheduled rotating power cuts) as an infrastructural challenge for South African agriculture. Instead, it listed municipal services challenges and port challenges. Other external factors affecting the sector were the CPI index for electricity and other fuels (up 15.3% y-o-y, but by zero percent m-o-m) and fuel (a 9% y-o-y increase, and also up m-o-m, by 1.9%).
ICYMI: S.Africa considers complaining to WTO against EU carbon border tax (CNBC Africa)
South Africa is considering lodging a formal complaint at the World Trade Organization against the European Union’s “protectionist” carbon border levy, Trade Minister Ebrahim Patel said on Wednesday.
The EU’s proposed carbon border adjustment mechanism (CBAM), which will impose charges on imports of carbon-intensive goods like steel and cement into Europe, has faced criticism from some developing nations and sectors including China’s steel industry.
In October, the EU launched a trial phase of the world’s first carbon border levy, which from 2026 will impose costs on imports of steel, cement, aluminium, fertilisers, electricity, and hydrogen.
“We believe that first prize always is to reach agreement through engagement and negotiation and our door remains open to find a settlement with the European Union on this matter,” Patel told Reuters.
Warm reception for Zimbabwean blueberries in South Africa before global trade starts (FreshPlaza)
The Zimbabwean blueberry export season commenced in mid-April, with the first products being shipped to South Africa where blueberry prices remain favourable. “The market has to be good to make it worthwhile for Zimbabwean growers,” says Rossouw Lambrechts, blueberry account manager at Delecta Fruit, which begins its blueberry campaign (much like its stone fruit campaign) with Zimbabwean fruit.
Most farms, located north of Harare, pack blueberries from April until September, a period that avoids the highly competitive South African and Peruvian export seasons.The peak period for Zimbabwean blueberries is from the end of June through July when they are one of the few major suppliers globally, a market position on which Zimbabwean growers have effectively capitalized, Lambrechts observes.
Known for their high quality, Zimbabwean fruit are primarily flown out from Harare or Johannesburg. An increasing portion is also shipped to the UK or EU by sea via Cape Town harbour. Currently, with Morocco and Spain still at the height of their blueberry seasons, it makes sense for Zimbabwean growers to supply their blueberries to Delecta in South Africa. Here, they are sold to a diverse range of clients and prices are around 10% higher than the same period last year.
How the Finance Act 2023 hit Kenyans (The Standard)
Close to a year after the Finance Act 2023 came into effect, many Kenyans are still struggling to adjust to the realities that the law dealt them. This is even as the National Treasury proposes even more new tax measures that analysts have warned could have a similar kind of impact on Kenyans, making essentials such as bread and transportation more expensive. The Finance Act 2023 remains one of the most controversial money laws, with some of the clauses still being contested in court.
A look at the Economic Survey 2024, which shows how the economy performed last year, somewhat gives a view of the kind of impact that the Finance Act 2023 had on Kenyans. Different sectors reduced their consumption of petroleum products by reacting to the high cost of fuel, which could have meant a reduction in activities while construction also suffered a decline as Kenyans reacted to the higher cost of building materials.
ICYMI: 700 items get Ghana’s rules of origin credential to trade under AfCFTA (Fibre2Fashion)
Seven hundred products have received rules of origin certification to be traded under the African Continental Free Trade Area (AfCFTA) rules, Ghana’s minister of trade and industry Kobina Tahir Hammond recently announced.
“In our determined effort to take advantage of the AfCFTA Guided Trade Initiative, the government facilitated exploratory market expedition missions to Kenya, involving 63 companies, and to Tanzania, involving 52 companies. As a result, a total of 700 products have received rules of origin certification to trade under AfCFTA,” Hammond stated. Deputy minister for foreign affairs and regional integration Mavis Nkansah-Boadu said over 70 per cent of products are passing global quality assessments.
Highlighting the progress of the One District One Factory (1D1F) initiative, with 321 projects at various stages of implementation, the minister said of these, 169 factories are operational, employing 169,870 and contributing to import substitution and export diversification.
Oil and gas industry body shines spotlight on Angolan market (Engineering News)
The African Energy Chamber (AEC) has highlighted the opportunities provided by Angola’s oil and gas industry. The Chamber pointed out that oil and gas formed the lynchpin of the Angolan economy and that, since 2017, it had been subject to “aggressive reform”. Since 2019, the country has been undertaking multiyear licensing rounds for offshore blocks for both oil and gas exploration and production, open to foreign enterprises. So far, this policy has seen the awarding of more than 27 such blocks. The most recent of these rounds saw 53 bids for 12 blocks in the Lower Congo and Kwanza Basins.
“For decades, Angola’s oil and gas industry has delivered high returns for investors, with economic stability, proven petroleum plays and strong local partners underpinning the success of multimillion-dollar investments,” affirmed the AEC. “While recognised as a mature oil market, Angola continues to offer frontier opportunities for explorers.”
Reprieve for traders as court lifts ban on muguka in Mombasa, Kilifi (The Standard)
Muguka farmers and traders have gotten temporary relief after the Embu High Court issued conservatory orders lifting the ban in Mombasa and Kilifi. Justice Lucy Njuguna on Tuesday, ordered a stoppage on the enforcement and implementation of ‘Executive Order No.1” by the Governor of Mombasa pending the hearing of a petition filed by muguka farmers and traders.
The case filed by Kutherema Muguka Sacco Society Limited and the Embu County Assembly against the Mombasa and Kilifi counties will be heard on July 8, 2024. Muguka farmers and traders are now free to transport, enter, and sell Muguka in Mombasa and the Kilifi pending the hearing of the case.
Nigeria on the Rise: FDI Surges as Tinubu’s Administration Marks One Year in Office (openPR.com)
As President Bola Ahmed Tinubu’s administration completes its first year in office, Nigeria has witnessed a remarkable transformation in its economic and infrastructure landscape, having prioritized attracting foreign investment as part of its economic strategy. The president’s foreign trips and engagement with international investors, combined with Vice President Kashim Shettima’s expertise in finance, have played a crucial role in restoring the confidence of foreign investors’ confidence, resulting in a substantial increase in foreign direct investment (FDI) commitments, exceeding $30 billion, with over $20 billion already invested in various sectors.
The International Monetary Fund (IMF) and other global economic organizations have also acknowledged Nigeria’s efforts to improve its investment climate. The country’s economic diversification and restructuring initiatives aim to reduce its reliance on oil exports and foster growth in other sectors.
Digital financial inclusion is key to growing trade within Comesa (Business Daily)
As the largest trade bloc on the continent, the Common Market for Eastern and Southern Africa (Comesa) holds immense potential for driving economic growth, fostering regional integration, and lifting millions out of poverty. Comesa’s trade statistics paint a picture of immense opportunity coupled with significant challenges. While the region exported goods worth $205 billion and imported goods valued at $ 272 billion in 2022, it also faced a trade deficit of $67.5 billion.
Furthermore, intra-Comesa trade, though substantial, remains below its true potential, with its exports and imports standing at $14.1 billion and $14.2 billion, respectively. Despite the region’s economic potential, challenges persist in strengthening trade facilitation mechanisms to ensure sustainable value chains and seamless supply chains across borders.
Africa needs to trade in higher-value goods to aid development (Brand South Africa)
African countries need to trade in value-added and intermediate goods with each other and the rest of the world in order to address the continent’s developmental challenges. Platforms like the African Continental Free Trade Area (AfCFTA) must also be used to strengthen value chains across various sectors.
Dr Stavros Nicolau, a member of the BRICS Business Council in South Africa says the expansion of BRICS presents opportunities for the continent. Nicolau noted that Africa currently has a trade deficit with the original BRICS countries, as well as the new countries, especially with China. Nicolau says in order to address the deficit, African countries have to add value to some of the raw materials they exports as well the goods they trade with each other and the rest of the world.
Ms Busi Mabuza, the Chair South African BRICS Business Council says the BRICS plus provides a platform to explore and capitalize on the available opportunities for the Continent. These countries are emerging economies with a growing middle class and a substantial consumer market, expanding into these markets can lead to growth opportunities for the Continent. Some of the immediate benefits for the Continent include improving the trade patterns across new BRICS plus members through enhanced bilateral investment agreements, balancing of trade and exploring the value chain opportunities in line with AfCfTA private sector strategy.
Experts expect AfCFTA to promote inclusive growth in Africa (Xinhua)
African experts said here on Monday that the full implementation of the African Continental Free Trade Area (AfCFTA) will foster inclusive growth across the continent. Speaking at the 59th Annual Meeting of the Board of Governors of the African Development Bank (AfDB) in Nairobi, Kenya, they said increasing continental trade will reduce Africa’s dependence on traditional Western markets.
Vincent Nmehielle, secretary general of the AfDB Group, said liberalizing trade across Africa by removing import duties on goods produced within the continent will boost intra-African commerce, benefiting small businesses. “More trade among African countries will also help the continent diversify its export basket, thereby creating more jobs and employment opportunities,” Nmehielle said.
John Bosco Kalisa, chief executive officer of the East African Business Council, the umbrella body of the private sector in East Africa, said the council is currently educating small and women-owned enterprises on the procedures for trading under the AfCFTA regime. He pointed out that Africa’s exports are predominantly unprocessed minerals and agricultural commodities. The AfCFTA, therefore, holds the promise of adding more value to these products within the continent, leading to inclusive growth.
See also: Industrial manufacturing must be at the core of AfCFTA – AfDB’s Adesina (The New Times)
2024 Annual Meetings: Africa’s Voice Needs To Be Heard, Says African Development Bank President (AfDB)
African Development Bank President Dr Akinwumi Adesina says the world is changing and Africa needs to be at the table. Adesina told more than 150 journalists covering the Bank’s Annual Meetings in Nairobi that the Global South is becoming much more important and that as a result the global financial architecture needs to change:
“The global financial architecture is not addressing Africa’s issues nor delivering for Africa. Our voice needs to be at the table. The global financial architecture needs to be creating fairness, equality, justice, representation and inclusiveness.”
“Africa is coming of age on the strength of south-south cooperation, but I don’t see the world in a divisive manner. We should be looking at our ability to pool our energies and harness all our diversity for the good of the world. All our development banks cooperate and now there isn’t a single project in Africa that we can’t finance – not one”.
The African Development Bank’s 2024 Annual Meetings start on Monday in Nairobi, and offer a unique opportunity to collectively promote innovative ideas for reforming the global financial architecture.
The shareholders of the Bank, Africa's premier development finance institution, are encouraged to exchange views with a broad range of public and private sector leaders to reach a consensus on the reform needed to raise more finance to help transform the continent.
“The reform of the global financial architecture must respond effectively to the increased budgetary costs that (African) countries are facing, so as to speed up their development,” said Akinwumi Adesina, President of the Bank Group, at a session on SDRs held at COP28 last December in Dubai. “To do this, we must also adapt the instruments of the global financial architecture, in particular the Special Drawing Rights.”
Africa’s food security, is more fertilizer the answer? (The Exchange)
Africa’s food security relies on fertilizer access as the answer; the population is exploding, and climate change among other factors affecting food production, will more fertilizer solve this life-threatening puzzle? The USAID seems to think so, more fertilizer, better-improved fertilizer, more affordable (questionable), all in all, the USAID is proposing fertilizer as a key solution to Africa’s food security.
“In a landmark move for African agricultural advancement, USAID and OCP Group, the world leader in plant nutrition solutions and phosphate-based fertilizers, have partnered to tackle critical barriers hindering Africa’s agricultural potential,” announces a recent press release from USAID.
The announcement comes on the heels of a visit by USAID Administrator Ms. Samantha Power to the University Mohammed VI Polytechnic in Morocco. While at the university, the USAID Administrator is reported to have signed ‘a collaborative agreement to pursue two sustainable and innovative initiatives designed to enhance agricultural efficiency and productivity across the continent.’
A New Dawn for US-African Cooperation? by Vera Songwe (Project Syndicate)
Kenyan President William Ruto’s recent visit to the United States could well mark a turning point in US-Africa relations. Closer cooperation would yield mutually beneficial results on issues ranging from economic growth to planetary sustainability. Yet a lack of investment, depreciating currencies, and high interest rates are choking African economies and derailing critical initiatives like green industrialization.
Africa holds great potential for the US and other countries that are willing to invest in a greener future. Many governments have placed electric vehicles, digitized schools, and resilient, energy-efficient housing high on their policy agenda. The continent has a young, fast-growing population, and it is embarking on an industrialization path fueled increasingly by solar and renewable energy. In Kenya, 90% of the power supply already comes from renewable sources.
But Africa will need international assistance to overcome various economic challenges and achieve sustained growth. The US can offer three forms of support. First, African countries should be included in US efforts to shore up distressed allies, especially now that spending packages have already been broadened beyond Ukraine to reach a broader array of recipients. Both sides would benefit if this support was designed to drive investment in green industrialization and climate-resilient infrastructure throughout Africa.
See also: Kenyan President Ruto’s White House visit spotlights US-Africa policy (Devex)
Global aviation IT specialist enters the maritime sector (Engineering News)
Global air transport IT solutions group SITA announced on Tuesday that it was expanding into the maritime sector, with the launch of its new subsidiary company, SmartSea. It also announced that SmartSea had entered its first agreement, with Cyprus-based global major ship management and maritime services company Columbia Shipmanagement (CSM).
“SITA is taking a bold step into the maritime sector, where our longstanding leadership in aviation can serve to overcome economic and capacity challenges, enhance security and unlock new revenue streams for companies across the industry,” explained SITA CEO David Lavorel.
“The global maritime industry plays a vital role in fostering economic growth, human development and global connectivity. By facilitating international trade, creating jobs and driving technological innovation, the industry contributes to better living standards and economic prosperity around the world. By using valuable cross-industry synergies and our international reach, we are collaborating with companies such as [CSM] to elevate their operations to the next level. This is a significant step for us and demonstrates our ability to revolutionise end-to-end travel, regardless of the mode of transport.”
Nature-based solutions present a unique way for Africa to accelerate the implementation of the SDGs and Agenda 2063 while contributing to the conservation of continent’s rich biodiversity, promoting ecological connectivity, and enhancing climate resilience, said Antonio Pedro, Deputy Executive Secretary, the Economic Commission for Africa (ECA), today at the African Natural Capital Alliance Annual Summit held in Nairobi, Kenya.
Speaking leaders in the financial markets sector, Mr. Pedro said, “With careful design of its development pathway, Africa can harness the value of its natural resources through responsible management practices that recognize planetary boundaries and balance economic growth with environmental conservation and social equity, beyond GDP metrics.”
Referencing a study by the ECA and Dalberg, Mr. Pedro said Africa could mobilize $82 billion per annum if the price of carbon reached $120 per tonne of CO2. However, there is a need to eliminate market fragmentation and invest in building high integrity carbon credit markets.
Post-COVID, China is back in Africa and doubling down on minerals (Yahoo Finance)
China’s flagship economic cooperation program is bouncing back after a lull during the global pandemic, with Africa a primary focus, according to a Reuters analysis of lending, investment and trade data. Chinese leaders have been citing the billions of dollars committed to new construction projects and record two-way trade as evidence of their commitment to assist with the continent’s modernisation and foster “win-win” cooperation.
But the data reveals a more complex relationship, one that is still largely extractive and has so far failed to live up to some of Beijing’s rhetoric about the Belt and Road Initiative, President Xi Jinping’s strategy to build an infrastructure network connecting China to the world.
While new Chinese investment in Africa increased 114% last year, according to the Griffith Asia Institute at Australia’s Griffith University, it was heavily focused on minerals essential to the global energy transition and China’s plans to revive its own flagging economy. Those minerals and oil also dominated trade. As efforts falter to boost other imports from Africa, including agricultural products and manufactured goods, the
Aid to small islands falls even as temperatures rise (UNCTAD)
Global warming continues its upwards march, posing an existential threat to many small island developing states (SIDS). In the last six months of 2023, these vulnerable nations faced record heat, with the average surface temperature 1.7°C higher than in the 1951-1980 reference period.
In 2022, despite a record $287 billion in global Official Development Assistance (ODA), aid to SIDS fell by 13% to $5.9 billion, according to the latest analysis by UN Trade and Development. For economies that rely heavily on imports of essential goods like food and fuel, as well as on external financial flows – such as many SIDS – this decline in aid is a significant blow.
UN Trade and Development Secretary-General Rebeca Grynspan will join world leaders in Antigua and Barbuda for the 4th International Conference on Small Island Developing States. She will underscore the urgency to step up aid to SIDS, especially for climate adaptation and mitigation.
UN Global Supply Chain Forum calls for resilience amid world trade disruptions (UNCTAD)
The inaugural United Nations Global Supply Chain Forum, hosted by UN Trade and Development (UNCTAD) and the Government of Barbados, convened from 21 to 24 May 2024. The event brought together over 1,000 participants from around the globe to address escalating disruptions in global supply chains.
UN Deputy-Secretary General Amina Mohammed, Prime Minister Mia Amor Mottley of Barbados, and UN Trade and Development Secretary-General Rebeca Grynspan inaugurated the forum amidst a volatile global trade landscape. Global disruptions are causing ships to spend more days at sea and emit higher levels of greenhouse gases, highlighting the growing unreliability and uncertainty of our interconnected world.
The forum highlighted the complexities and opportunities in decarbonizing global shipping, focusing on developing countries with renewable energy resources. Ports are central to this transformation, with their authorities serving as facilitators and connectors for various stakeholders. Efforts to incentivize low- or zero-carbon fuels, establish safety frameworks for new fuels, and develop port readiness assessment tools were underscored as critical steps towards preparing ports for handling various fuels and ensuring safe bunkering operations.
The forum also saw the launch of the UN Trade and Development Trade-and-Transport Dataset. Developed with the World Bank, this groundbreaking repository of global data is the first of its kind. It covers all countries and trading partners, with data on over 100 commodities and various transport modes, offering a holistic view of trade, including mode of transport and associated costs. Accessible for free, the dataset is expected to significantly contribute to better understanding and optimizing global trade flows, as well as improving evidence-based policymaking.
BRICS’ push to reduce US dollar dominance with digital currencies (Al Mayadeen)
The practicality of establishing a common currency is challenging; instead, the BRICS organization has focused on increasing trade and lending in local currencies to diminish reliance on the dollar, writer Huileng Tan says.
An op-ed published on Business Insider by writer Huileng Tan delves into efforts led by the BRICS group in advocating for a move away from US dollar dominance. Last year, Brazilian President Luiz Inácio Lula da Silva proposed a common BRICS currency, though this idea faced skepticism from economists. The practicality of establishing a common currency is challenging; instead, the bloc has focused on increasing trade and lending in local currencies to diminish reliance on the dollar.
Christopher Granville, managing director of global political research at GlobalData TS Lombard, suggested that discussions on reducing dollar dependence might gain momentum during the BRICS summit in Kazan, Russia, scheduled for October 22-24.
A significant development in this context is the interest of central banks in digital-currency transfers. Granville noted that a potential systemic solution involves a platform from the Bank for International Settlements (BIS) that facilitates direct, peer-to-peer settlements of commercial invoices and foreign-exchange trades using central-bank digital currencies (CBDCs).
Brics bank mulls funding for non-member States projects (Business Daily)
A multilateral infrastructural projects financier owned by the Brics countries is mulling over funding projects in countries outside the bloc’s 11 members, unlocking additional finance for infrastructure upgrades in African nations like Kenya.
The New Development Bank (NDB), which is owned by the Brazil-Russia-India-China-South Africa (Brics) intergovernmental organisation, may soon be sending money to finance projects across the region, even as it lobbies for more African countries, including Kenya, to join the bloc. South Africa is seeking to have the financier fund projects across Africa to ease trade and as an investment opportunity for Brics companies. If successful, this bid could unlock access for African private and public institutions to the over $50 billion capital of the NDB, which was previously accessible only to companies domesticated within the Brics countries.
“We would like the NDB, where there is sponsorship by a member country and there’s intra-regional connectivity opportunity, to consider that as a fundable opportunity,” said Busi Mabuza, the Brics Business Council South African chapter chairperson. Ms Mabuza said South Africa has launched the campaign to rally the Brics member states behind the plan in a bid to boost investment opportunities for member countries.
BRICs confident of Russia’s chairmanship, special attention to solving problems of “Global South” (Indianarrative)
The International Scientific and Practical Conference “BRICS in the Era of Global Social Transformations” was held in Russia, where an Indian professor expressed his confidence that during Russia’s BRICS chairmanship, special attention will be paid to solving the problems of the global south. The International Scientific and Practical Conference “BRICS in the Era of Global Social Transformations” was held in Moscow at the Faculty of Global Studies, Lomonosov Moscow State University (MSU), TV BRICS reported.
Cabinet approves Brics membership bid (Bangkok Post)
Thailand is moving ahead with a plan to join the intergovernmental organisation Brics, which is beginning to expand beyond its founding members: Brazil, Russia, India, China and South Africa. Government spokesman Chai Wacharonke said the cabinet on Tuesday approved a draft of the official letter that indicates Thailand’s intention to become a member of the group. Egypt, Ethiopia, Iran and the United Arab Emirates officially joined the Brics bloc on Jan 1. Thailand is currently in the next queue of 15 countries being considered for admission.
Becoming a Brics member, the letter said, would benefit Thailand in many dimensions, including enhancing the country’s role in the international arena and increasing its opportunities to co-create a new world order. Mr Chai said Brics had invited non-member countries aspiring to join to participate in the 16th Brics summit in Kazan, Russia, from Oct 22 to 24.
Business e-commerce sales and the role of online platforms [Advance copy] (UNCTAD)
In 2021, approaching US$ 25 trillion of e-commerce sales were generated by businesses across 43 developed and developing economies accounting for around three quarters of worldwide GDP. This represents a 15 per cent increase over pre-pandemic (2019) levels and sales are estimated to have risen a further 10 per cent - to almost $27 trillion - in 2022.
The share of business turnover generated through e-commerce varies widely in the economies analysed, from less than one per cent to as much as 30 per cent. In almost all cases, the majority of e-commerce sales by businesses are made to other businesses or organizations. In most, the share of business-to-consumer sales is less than a quarter. While developing economies generate around 40 per cent of global GDP, their share in business e-commerce sales is considerably lower.
This technical note presents the latest statistics on the value of e-commerce sales by businesses. It benefits from a notable increase in availability brought about by the release, by Eurostat, of figures for many EU and partner countries.
New WTO publication highlights strategies to tackle illicit trade in food and food fraud (WTO)
A new WTO publication launched on 28 May looks into the challenges of combating illicit trade in food and food fraud and discusses the role the WTO could play in helping to address this issue. At the launch event, leaders from business and international organizations and other trade experts discussed the urgent need for the international community to act collectively and explored strategies for overcoming current challenges.
In her opening remarks, Director-General Ngozi Okonjo-Iweala explained the importance of the WTO’s engagement in this conversation, emphasizing its role in disciplining international trade and preventing the “law of the jungle.” She said: “The levelling of the playing field must extend to weeding out all forms of illegal trade and fraudulent activities,” including sub-standard food, falsely labelled food, counterfeit goods and smuggled products
Quick links
Africa Can’t Prosper Without Regional Trade by Kingsley Moghalu (Project Syndicate)
International trade statistics trends in first quarter 2024 (OECD)
Profits and value ‘central’ to producing more feed protein in EU (Agriland.ie)
The missing links in India-Middle East-Europe Corridor, as shown by the Gaza war (The Hindu)
Regional payment infrastructure integration: insights for interlinking fast payment systems (Bank for International Settlements)
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Multimodal Inland Port Association launched (Engineering News)
The Multimodal Inland Port Association (MIPA), which seeks to address a critical need in South Africa’s logistics landscape, was launched in South Africa last week. The association aims to act as the unified voice for inland ports across the nation, focusing on promoting, supporting, and advocating for the increased movement of cargo from road to rail.
“Transporting more cargo by rail has become an imperative, considering the growing cost of logistics in South Africa. It is no longer just a nice-to-have,” says MIPA chairperson Warwick Lord. The MIPA aims to reform the rail industry through private investment, foster trade activities that meet social objectives and facilitate the transfer of goods from road to rail. By optimising industrial and logistics activities through efficient multimodalism, logistics costs will be reduced, and efficiency will be improved, the MIPA posits.
“We aim to create one voice for inland ports, driving workable multimodal solutions that deliver efficiency, cost reduction, and much-needed resilience to the South African supply chain. By doing so, we can mitigate the impact of external shocks and ensure stability in the logistics sector,” says Lord.
The MIPA’s strategy to drive more cargo from road to rail includes using multi-nodal technology and improving collaboration with other freight hubs and stakeholders, to optimise each supply chain link from a cost and efficiency perspective.
The Kingdom of Eswatini launches its 2nd National Financial Inclusion Strategy (2023-2028) (SADC)
The Southern African Development Community (SADC) Secretariat, through the European Union-funded Support to Improving the Investment and Business Environment in the SADC Region (SIBE) Programme, has supported Member States, namely: Angola, Botswana, Eswatini, Lesotho, Madagascar and Malawi in developing their National Financial Inclusion Strategy as a way of domesticating the SADC Strategy on Financial Inclusion and Small Medium Enterprises access to finance.
Following the successful development of its second National Financial Inclusion Strategy (2023-2028), the Kingdom of Eswatini launched this Strategy on 23rd May 2024 during the Alliance for Financial Inclusion (AFI) Gala dinner
The Strategy was officially launched by Hon. Neal Rijkenberg of Minister of Finance the Kingdom of Eswatini, who highlighted that the Government of Eswatini continues to place Financial Inclusion as an important priority for broad economic inclusive growth. This is to ensure that all economically active Emaswati are provided equal opportunities to create welfare, reduce poverty, improve livelihood by build resilience against unexpected shocks. He also emphasised that Financial Inclusion is not only opening bank accounts or accessing credits, but also about empowering people, in particular women, youth, people with disabilities and forcibly displaced people to take control of their financial future, enabling them to save, invest and protect themselves against unexpected shocks and hurdles. Hon. Rijkenberg further indicated that Financial Inclusion is about fostering economic growth, reducing inequality, and creating more inclusive and sustainable society.
Cautious optimism as Kenya, Uganda trade in sugar, milk resumes (The East African)
A section of Uganda businesses resumed trading with Kenya after the signing of a memorandum by Presidents William Ruto and Yoweri Museveni in Nairobi last week, ending longstanding issues chocking cross-border commercial activities. While trade in sugar and milk has resumed, businesses are still cautious, as a number of taxes, including those on Kenyan juice, are yet to be reviewed. Simon Kaheru, vice-chairman of the East African Business Council, who also chairs the Ugandan Private sector, told The EastAfrican that the Nairobi meeting was very helpful in opening up the two countries to trade.
“So far, a number of our members involved in some sectors that were previously affected by the blockades have begun trading once again. We have had confirmation specifically from the sugar and dairy sectors that the situation has improved,” he said.
During President Museveni’s state visit to Kenya, the two East African Community (EAC) founding Partner States signed seven memoranda in public service management, education, SME development, sports, youth, trade and investment sectors. The leaders also agreed to resolve the trade wars by adhering to the EAC’s protocols on the Customs Union and the Common Market.
Kenya, US investment manager sign $3.6bn highway deal (The East African)
Kenya’s highways authority and US infrastructure investment manager Everstrong Capital have signed a $3.6 billion agreement to build a 440 km highway between the capital and port city Mombasa, the company said on Thursday. A bigger highway between Mombasa and Nairobi has been on the wish list of successive governments aiming to ease congestion on the busy road to and from the port.
“The project anticipates attracting investments totalling $3.6 billion, sourced from international investors, development agencies, pension funds and an exceptionally large number of Kenyan private investors,” Everstrong said in its statement.
AfDB’s €209.17 Kenyan Highway Project to be Completed in December (MarketForces Africa)
The African Development Bank (AfDB), says it’s 209.17 Euros Kenol—Sagana—Marua Highway Project in Kenya will be completed in December. Mr Richard Malinga, AfDB’s Transport Engineer and Desk Manager of the project said this when he briefed newsmen in Nairobi on Sunday shortly after inspecting various projects.
“The work started in October 2020 and has advanced, so essentially, by the end of this year, it will be completed. “The project will ensure regional connectivity, reduce travel time and create wealth for people around the region,” he said. The Kenol – Sagana – Marua Highway Project involves the reconstruction of an 84km road linking Kenya’s capital city, Nairobi, with the commercial and agricultural towns of the Central and Upper Eastern regions.
Ghana’s debt restructuring takes another step forward (The East African)
Ghana has agreed a memorandum of understanding (MoU) with its bilateral creditors, including China and France, to restructure $5.4 billion of debt, the government said on Friday, one-and-a-half years after the West African country defaulted. The MoU paves the way for the executive board of the International Monetary Fund (IMF) to approve the disbursement of $360 million under Ghana’s $3 billion, three-year bailout programme, which is expected next month.
Once signed, the agreement would form the basis of a deal to restructure loans with its official creditors under the Paris Club of creditors, agreed in January.
Ghana was the second country in Africa after Zambia to default on most of its $30 billion external debt during the pandemic as the exporter of gold, cocoa and oil battled to emerge from its worst economic crisis in a generation. Ghana’s economy has since started to recover, with inflation easing from 54.1 percent in December 2022 to 25 percent in April 2024 and 2023 growth of 2.9 percent exceeding the IMF’s 2.3 percent.
Together with Zambia and Ethiopia, the world’s second-biggest cocoa producer is reworking its debt under the G20 Common Framework, a process set up during the pandemic to speed up debt overhauls. However, progress has been slow, holding back the countries’ economic recoveries and access to much needed overseas loans, aid and investment.
Afreximbank, Others Validate Nigeria’s Readiness To Host African Energy Bank (Leadership News)
The technical inspection team from the African Petroleum Producers Organization (APPO) and AfreximBank– the joint promoters for the establishment of the African Energy Bank – (AEB), has just completed their mission to validate Nigeria’s readiness to host the headquarters of the African Energy Bank (AEB), set to be established in July 2024. This is as President Bola Tinubu has approved a $100m investment by Nigeria for class A shares in the proposed AEB the Federal Ministry of Petroleum Resources announced.
The permanent secretary at the ministry, Nicholas Agbo Ella, who disclosed this in a statement issued on Friday, said the approval now positions Nigeria favourably to win the bid to host the multilateral $5 billion Africa Energy Bank, which will finance Africa’s hydrocarbon deposits of oil, gas, and condensates and support energy transition and net zero 2060 commitments.
FG Urges South-east Businesses to Embrace ECOWAS Trade Liberalisation Scheme (This Day Live)
The federal government has called on businesses in the South-east region to take advantage of opportunities offered by the ECOWAS Free Trade Liberation Scheme (ETLS) to boost their businesses. Minister of the Foreign Affairs, Ambassador Yusuf Tuggar, made the call yesterday, during a workshop on ECOWAS Trade Liberalisation Scheme (ETLS) in Awka, Anambra State capital.
The minister who was represented by the Director, Department of International Organisation in the ministry, Ambassador Obinna Onowu, enumerated some of the benefits of gains and opportunities offered by the ETLS. He said: “The primary goal is to establish a customs union among all member states (ECOWAS) with the ultimate objective of completely eliminating customs duties and implementing a unified customs policy.
“The ETLS represents an ideal opportunity to foster greater economic integration, and unlock the immense potential of intra-regional trade,” he explained. He stated that the ministry had already organised similar sensitisation in Kano in 2020, and, in Lagos in 2023 for manufacturers, importers and exporters in the North-west and South-west zones, respectively. The minister emphasised that the ministry viewed holding the programme in the South-east as very critical because of the huge number of the stakeholders in the region.
Tinubu reiterates commitment to sustainable development in Niger Delta (Peoples Gazette Nigeria)
President Bola Tinubu has reiterated his government’s commitment towards the sustainable development of the Niger Delta region. Mr Tinubu, at the inauguration of the 27km Ogbia-Nembe road in Bayelsa, said his administration was serious about delivering democracy dividends to Nigerians.
The Niger Delta Development Commission (NDDC) and the Shell Petroleum Development Company (SPDC) jointly funded the multimillion naira road project which had seven bridges. Speaking at the inauguration ceremony, Mr Tinubu, represented by Abubakar Momoh, the Minister for Delta Affairs, urged Nigerians to make meaningful input towards the success of his administration. He said the road project, which took 18 years to be completed, had brought relief to the 14 communities within its corridors.
‘Ghana is at forefront of implementation of ACFTA’ (MyJoyOnline)
The Ministry of Foreign Affairs and Regional Integration says Ghana is at the forefront of implementing the African Continental Free Trade Area agreement. According to the Deputy Minister, Mavis Nkasah-Boadu, the government has a keen interest in implementing the ACFTA initiative because the framework has provided a distinct platform for African businesses. She said this while speaking at the just-ended 3rd Made-in-Ghana Bazaar held at the Accra International Conference Centre (AICC), spearheaded by the Ministry.
“The government of Ghana is keen on the implementation of the African Continental Free Trade Agreement. The ACFTA framework has provided a unique opportunity for intra-African trade and Ghana is at the forefront of the implementation of this agreement,” the Minister emphasized. She added that Ghana has been able to trade with other African countries over the years, courtesy of the ACFTA-guided initiative, which was launched in October 2022 to pilot the implementation of the agreement.
Visa’s New Study Unveils Emerging SME Megatrends in Nigeria, Highlighting Significant Opportunities for Issuers (Ventures Africa)
A new study from Visa, the SME Megatrends report, delves into the ever-evolving financial landscape for Small and Medium Enterprises (SMEs) in Nigeria. The report identifies significant opportunities for growth and innovation, particularly in the digital and financial domains, with clear insights that can be leveraged by issuing banks to unlock new revenue opportunities and gain a competitive edge.
Rapid digital acceleration in Sub-Saharan Africa’s SME sector presents a wealth of new revenue opportunities for issuing banks who, by facilitating access to essential financial products and services, can tap into this potential, leading to an expanded customer base, increased transaction volumes, and heightened revenue prospects within the digital payments landscape. By working in partnership with Visa, issuing banks can deliver bespoke financial products tailored to SMEs’ unique needs to promote inclusive economic growth actively.
Secretary-General of the Digital Cooperation Organization (DCO), Deemah Al-Yahya, stressed in an interview with Ahram Online the importance of Egypt regionally and internationally due to its young talents in digital technology and entrepreneurship and its strategic location as a meeting point for submarine cable routes, the lifeline for internet services and digital economy.
Al-Yahya indicated that the organization has launched many initiatives to improve the efficiency of the technological infrastructure in member states and enhance foreign direct investment opportunities, thereby achieving tangible economic booms.
She added that the DCO currently has 16 member states, mostly from the southern hemisphere, representing 800 million people. Al-Yahya noted that the DCO provides promising opportunities for cooperation and joint integration.
Agricultural Boom Drives 29.5% Increase in CEMAC Export Prices in Q1 2024 (Business in Cameroon)
The composite index of commodity prices exported by Central African Economic and Monetary Community (CEMAC) countries rose by 6.8% in the first quarter of 2024, quarter-on-quarter. According to the report on the price trends of key export products by these member states, recently published by the Bank of Central African States (BEAC), this increase “was driven by the rise in prices of non-energy products (20%), offsetting the decline in energy product prices (-4.9%)”.
The BEAC report highlights that agricultural products were the main driver behind the surge in global commodity prices exported by CEMAC countries. Agricultural product prices surged by 29.5%, while forest product prices increased by only 1.9%. Meanwhile, global prices for metals and minerals declined by 1.1%, and fishery product prices fell by 0.5%.
Despite maintaining “their upward trend since the third quarter of 2023”, commodity prices on “commodity markets remain subject to strong pressures from geopolitical, macroeconomic, and climatic uncertainties,” reads the report.
EAC Central Bank Governors meet in Juba as single currency race debate heats up (The Standard)
East African Community partner states are in the process of harmonising critical policies and putting in place the requisite institutions to attain a single currency as outlined in the EAC Monetary Union Protocol. The EAC common market - consists of eight countries including Somalia, the new member state. Others are Burundi, Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania and Uganda. It was set up in 2010 and currently comprises almost 300 million people.
Although the EAC has over the decades made progress in economic integration, like many other trade blocs it has struggled to overcome. The EAC Monetary Union Protocol, which was signed on November 30, 2013, aims to converge the currencies of the partner states into a single currency. The convergence of the currencies of all seven EAC partner states into a single currency was to take 10 years, which means the regional bloc was to have a common currency by 2024.
In the run-up to achieving a single currency, the member countries have to harmonise their monetary and fiscal policies, as well as their financial, payment, and settlement systems.
Africa ready for broader ICT collab, says minister (ITWeb)
Communications minister Mondli Gungubele has emphasised the need for collaboration among African countries, in order to build a collective future in the digital era. The minister was speaking on the occasion of this year’s Africa Day, which was celebrated over the weekend.
This year’s Africa Day was held under the theme: “Educate an African fit for the 21st century”, encouraging member states to build resilient education systems for increased access to inclusive, lifelong, quality and relevant learning in Africa. Noting the progress African countries have made in regards to internet usage, Gungubele stressed that the future requires universal digital connectivity.
“At a time when the continent is experiencing rapid population growth and urbanisation, the importance of digital infrastructure cannot be overstated. There is a growing trend of collaboration among African nations to pool resources and expertise to develop and maintain digital infrastructure. “By working together, African countries can share the cost of building and maintaining digital infrastructure, making it more affordable for each country.”
African Union at crossroads, needs urgent reform, AUC chair declares (Peoples Gazette Nigeria)
Liberation, and progress in development and integration are now a reality. This has been the result of the vision and leadership of the founding fathers and current leaders, but also and above all, of your mobilization by the hundreds of millions across the Continent, your many sacrifices, your unshakeable endurance to ensure that the sun shines and warms planet Africa.
Peace and security, the solution to the crises that are ravaging some of our countries, terrorism, the degradation of the natural environment, youth and female unemployment, migration, the retreat of democratic values, unconstitutional changes of government, all these require a real increase in mobilization, sacrifices and coherent struggles to put a definitive end to all of these evils.
The Organization of African Unity, born of the pain of our struggles, now finds itself at a real crossroads. We must reform resolutely and courageously to become what our founding fathers wanted us to be, which is, a powerful lever for unity, liberation, integration and the defense of African dignity in relation to ourselves but also in relation to others.
The BRICS Alliance, together with the new member additions, provides immense trade and investment opportunities for the African continent, Prof. Vincent O. Nmehielle, Secretary General of the African Development Bank Group, said at an event on the sidelines of the African Development Bank’s 2024 Annual Meetings in Nairobi on Monday 27 May.” These countries are emerging economies with a growing middle class and a substantial consumer market; expanding into these markets will lead to growth opportunities for the continent,” Nmehielle said.
Redirect SDRs to Development Banks – AfDB urges IMF as calls grow for global reform (MyJoyOnline)
The African Development Bank Group is making a strong case for the rechanneling of Special Drawing Rights (SDRs) to development banks especially those in emerging markets. The Multilateral body argues that given the peculiar economic meltdown faced by most developing countries across Africa, an “innovative” solution will be required to unlock more development financing for the continent.
Although SDRs Serve as a supplementary international reserve asset for countries all over the world, Only 20 organisations have been designated as ‘prescribed holders’ of the SDRs, excluding other multilateral, private organizations and individuals to draw directly on these funds.
However, the African Development Bank says it is time for reform. Vincent O. Nmehielle, Secretary-General of the African Development Bank in his remarks to reporters at the commencement of the 2024 Annual Meetings in Nairobi Kenya, noted that Africa needs transformation in terms of socioeconomic development, a situation which he believes requires much more work to be done in achieving this set objective.
The Secretary-General pointed out that the international financial architecture, which was designed “mainly to resuscitate Europe after the Second World War” ought to be reviewed as he alludes to the desire of AfDB to champion the agenda of “Africa’s Transformation, the African Development Bank Group, and the Reform of the Global Financial Architecture” which forms the theme for this year’s annual meeting taking place in Nairobi, Kenya.
Small islands urgently need a new development paradigm (UNCTAD)
Small island developing states (SIDS) occupy limited terrestrial land area, yet boast substantial biodiversity and control nearly 30% of global ocean resources. But their systemic and structural vulnerabilities to shocks have increased over the years, fuelled by a lack of economic diversification, remoteness, smallness and limited international economic interaction, including through trade. They have a high trade-to-GDP ratio, but they persistently record negative trade balances.
SIDS also suffer from a lack of resilience and vulnerability to external shocks: debt unsustainability and the inability to access financing limit their fiscal space and restrict private sector investment and growth. Environmental threats have also become more dire in the face of climate change and frequent disasters.
Related: Small island States meet in Antigua and Barbuda charting new course to sustainable prosperity (UN News)
Quick links
Digital financial inclusion key for Comesa’s growth (The Standard)
How instant payment systems across Africa can be the role model for the world (CNBC Africa)
China Slammed in G-7 Show of Unity Threatening Trade Escalation (Bloomberg)
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Microsoft and the Department of Trade, Industry and Competition (the dtic) has agreed to a R1.32 billion investment to be deployed over the next ten years in the development of black-owned SMMEs in both tech and non-tech sectors. The agreement makes provision for skills development of young black South Africans in emerging technologies and includes a commitment to research and development to prepare South African industries for the fourth industrial revolution (4IR).
According to Lilian Barnard, President for Microsoft Africa, “This investment represents our commitment to empowering individuals and small businesses to be part of Africa’s digital economy, and to drive job creation and growth that will benefit the entire region.”
Cape Winelands airport aims to rival Cape Town International with multibillion-rand upgrade (Getaway Magazine)
A multibillion-rand airport project aims to rival Cape Town International Airport. Major plans for the Cape Town Winelands Airport outside of Durbanville are underway. Built on the historic Fisantekraal Airport site, established in 1943 for the South African Airforce during World War 2, the Cape Town Winelands Airport is gearing up to undergo a substantial transformation under the leadership of the Managing Director of rsa.AERO, Nick Ferguson.
Plans to develop the Cape Town Winelands Airport include an ambitious R7-billion expansion, featuring a Code F runway spanning 3,500m to accommodate large aircraft that aren’t accommodated at Cape Town International, such as the Airbus A380.
In his presentation to investors and tenants recently, Ferguson underlined the issue of limited airline hub options in South Africa. He noted significant fuel expenses for carriers travelling between airports, stressing the need for alternate local facilities that will accommodate increased air traffic. The upcoming Cape Winelands Airport aims to address this, with projections suggesting industry savings of R1.2 billion by 2027.
Neasa asks Patel, Itac to stop imposing upstream steel import duties (Engineering News)
The National Employers’ Association of South Africa (Neasa) says government’s duties on imported steel only serve to support ailing primary steel producer ArcelorMittal South Africa (AMSA). Neasa said the duties would not only fail to save AMSA in the long run, but were also gradually eroding the entire steel industry.
In a letter addressed to outgoing Trade, Industry and Competition Minister Ebrahim Patel, Neasa CE Gerhard Papenfus stated that the closure of Saldanha Steel and the possible closure of Newcastle Steel Works were examples of AMSA’s steady decline despite government having imposed import duties since 2015. Additionally, AMSA has become a high-cost producer, with costs of production only poised to increase since it is using a 60-year-old mill.
Neasa states that, as long as AMSA receives protection, through import duties for example, the downstream steel industry will continue to shrink and AMSA will be subject to being a low-priority investment destination for its parent company, ArcelorMittal International. Papenfus is calling on government to reverse this “protectionist strategy” and increase competition by allowing the steel industry downstream access to cost-effective raw material. Neasa finds that the steel industry has contracted by 25% since 2015 when the first duties were introduced.
Eswatini and South Africa launch end-to-end Time Release Study (TRS) reports (WCO)
Following WCO capacity-building and technical assistance, the reports of the end-to-end Time Release Study (TRS) of the Oshoek-Ngwenya land border were jointly published by Eswatini and South Africa on 20 May 2024. The coordination between Eswatini and South Africa underscores the importance of the Oshoek-Ngwenya border as the busiest land border post between the two countries and as a gateway for trade flows within the Southern African Customs Union and transit cargo routes to the port of Durban.
The Oshoek-Ngwenya border, the largest SACU border post, handles over 50% of Eswatini’s cross-border trade and 8% of South Africa’s land border cargo. An extensive line of waiting trucks at the border was the direct trigger for the joint TRS between the two countries. Given its high trade volume, any improvements here would have a substantial impact on the overall efficiency of trade within the region.
Ghana receives approval to trade 700 products under AfCFTA (Xinhua)
Ghana has received approval from the authority of the African Continental Free Trade Area (AfCFTA) to trade 700 local products within the African continent, a senior official said. Minister of Trade and Industry Kobina Tahir Hammond made the announcement on the first day of the Made-in-Ghana Bazaar, saying the government has been taking a number of steps aimed at making Ghanaian products competitive domestically and abroad under the AfCFTA.
The minister said the government took advantage of the AfCFTA Guided Trade Initiative and facilitated market exploratory missions for 63 companies to Kenya and 52 companies to Tanzania. “As a result, a total of 700 products have received rules-of-origin certification to trade under AfCFTA,” he said.
Gradual Recovery Signals: The Gambia’s Economy Shows Resilience Amid Global Challenges (World Bank)
The Gambia’s economy has shown a remarkable resilience in the face of heightened global and regional uncertainties, according to The Gambia’s Fourth Economic Update – Spring 2024. Despite a sluggish global environment, the country’s real GDP grew by 5.3% in 2023, signaling a continued recovery from the COVID-19 pandemic and persistent external headwinds.
“The improved agricultural production and increased public consumption as well as private and public investment drove this positive growth. However, challenges such as higher inflation, monetary tightening and economic slowdown in advanced economies disrupted the tertiary sectors and slowed private consumption, all of which tempered the country’s overall performance,” said Feyi Boroffice, World Bank Resident Representative.
New Ethiopia, Uganda business could hand Lamu port a lifeline (The East African)
The interest by Ethiopia and Uganda in importing goods through Lamu could be the lifeline that the largely moribund port needs even as it continues to register growth in business. Last week Ethiopia received the first shipment of 60,000 tonnes of fertiliser imported through the Port of Lamu from Morocco. And this week Uganda signalled an interest in using the Lamu port in a move that would see it expand trade with Somalia.
Kenya’s Roads and Transport Cabinet Secretary Kipchumba Murkomen toured the port on Wednesday and said it is strategically positioned to be the port of call for goods destined for northern Kenya, Ethiopia, and South Sudan. “That’s why we will do all in our power to facilitate the shipment of goods, including the 60,000-tonne fertiliser cargo destined for Ethiopia, in spite of a damaged section of the Lamu-Witu-Garsen road due to floods. “This is the first time Ethiopia is importing cargo through Lamu Port since its operationalisation three years ago.
Gov’t Encourages Strong Private Sector Engagement in Its Effort to Realizing Digital Ethiopia (ENA)
Deputy Prime Minister Temesgen Tiruneh called on the private sector to play a leading role in realizing Ethiopia’s digital transformation. A panel discussion focused on Ethiopia’s digital economy was held at the Science Museum today in the presence of the deputy prime minister as well as senior government officials and stakeholders in the technology sector. Deputy Prime Minister Temesgen said that since digital Ethiopia is inevitable, the country has embarked on implementing important initiatives that would pave the way for inclusive growth in the global digital economy.
Currently, Ethiopia is executing a digital transformation strategy to harness technological driven economic growth and propel the East African nation towards an innovative and sustainable economy. Explaining the reasons why it is necessary to speed up digitization for Ethiopia, Temesgen underscored that digitalization can play a leading role in accelerating the country’s growth.
Mastercard and African Development Bank Group to Provide Digital Identities (PYMNTS.com)
Mastercard and the African Development Bank Group formed an alliance to provide digital access to critical services to 100 million people and businesses in Africa over the next 10 years. The first efforts of the organizations’ Mobilizing Access to the Digital Economy (MADE) Alliance: Africa will include providing digital identities and access to high-quality seeds and agricultural inputs to 3 million farmers in Kenya, Tanzania and Nigeria, according to a Friday (May 24) press release.
“Across Africa, people are driving new growth and opportunity, and Mastercard wants to support their success,” Mastercard CEO Michael Miebach said in the release. Over the next five years, Mastercard will register 15 million users in Africa onto Community Pass, its platform that digitizes and connects remote, underserved communities to governments, nongovernmental organizations (NGOs) and the private sector, per the release.
The African Development Bank Group will support programs of the MADE Alliance: Africa by investing $300 million to fund digital infrastructure and incentivize public and private partners to enhance digital access, according to the release.
United States-Kenya Joint Leaders’ Statement (The White House)
Today [23 May 2024], we, President Joseph R. Biden, Jr. of the United States and President William S. Ruto of Kenya, reinforce our mutual commitment to leading democracies that deliver prosperity, security, and opportunity. Africa stands primed for historic opportunity, and together, we celebrate that Kenya has risen to the moment as a regional leader in clean energy and digital transformation, and as an anchor partner for health, security, and democracy.
The United States and Kenya have committed to work to conclude an agreement by the end of the year on an ambitious U.S.-Kenya Strategic Trade and Investment Partnership that reflects mutually shared goals and values. Under this initiative, our governments resolve to pursue high-standard commitments in multiple areas with a view to increasing investment, promoting sustainable and inclusive economic growth, protecting workers, benefiting consumers and businesses, and supporting African regional economic integration.
We believe bilateral trade and investment ties are the foundation of our joint prosperity. The African Growth and Opportunity Act (AGOA) is the cornerstone of the U.S. trade relationship with Kenya and across sub-Saharan Africa, and we would welcome its timely reauthorization. AGOA is about more than just trade: it supports policies to reduce poverty, combat corruption, and promote respect for human rights and workers’ rights. We believe that trade policies should foster inclusive and sustainable development, support regional integration, and ensure that all of our respective peoples – including and especially workers – benefit from the global economy.
Improving connectivity and accelerating economic growth across Africa with new investments (Google)
To help increase the reach and reliability of digital connectivity for Africa, today we’re announcing Umoja, the first ever fiber optic route to directly connect Africa with Australia. Anchored in Kenya, the Umoja cable route will pass through Uganda, Rwanda, Democratic Republic of the Congo, Zambia, Zimbabwe, and South Africa, including the Google Cloud region, before crossing the Indian Ocean to Australia. Umoja’s terrestrial path was built in collaboration with Liquid Technologies to form a highly scalable route through Africa, including access points that will allow other countries to take advantage of the network.
“Access to the latest technology, supported by reliable and resilient digital infrastructure, is critical to growing economic opportunity. This is a meaningful moment for Kenya’s digital transformation journey and the benefits of today’s announcement will cascade across the region.” - Meg Whitman, U.S. Ambassador to Kenya
Since Google opened our first Sub-Saharan Africa office in Nairobi in 2007, we have partnered with governments from countries across Africa on numerous digital initiatives. In 2021, we committed to invest $1 billion in Africa over five years to support a range of efforts, from improved connectivity to investment in startups, to help boost Africa’s digital transformation. Since then, Google has invested more than $900 million in the region, and we expect to fulfill our commitment by 2026. The collaboration introduced this week is the latest step towards delivering on our broader commitment to support Africa’s digital transformation, continued economic growth, and innovation.
Harris announces plans to help 80% of Africa gain access to the internet, up from 40% now (WHEC.com)
Vice President Kamala Harris announced Friday the formation of a new partnership to help provide internet access to 80% of Africa by 2030, up from roughly 40% now. The announcement comes as follow-through on Harris’ visit to the continent last year and in conjunction with this week’s visit to Washington by Kenyan President William Ruto. Harris and the Kenyan leader had a public chat on Friday at the U.S. Chamber of Commerce about how public-private partnerships can increase economic growth.
“Many could rightly argue that the future is on the continent of Africa,” said Harris, noting that the median age in Africa is 19, a sign of the potential for economic growth. “It is not about, and simply about aid, but about investment and understanding the capacity that exists.”
Africa has struggled to obtain the capital needed to build up its industrial and technological sectors. The United Nations reported last year that foreign direct investment in the continent fell to $45 billion in 2022, from a record high $80 billion in 2021. Africa accounted for only 3.5% of foreign direct investment worldwide, even though it makes up roughly 18% of the global population.
FG moves to boost export with ECOWAS trade treaty (Peoples Gazette Nigeria)
The federal government has called on Nigerian businesses and manufacturers to use the ECOWAS Trade Liberalism Scheme (ETLS) treaty to boost the country’s export basket. Maitama Tuggar, Minister of External Affairs, said this in his message to a one-day Sensitisation Workshop on the ECOWAS Trade Liberalisation Scheme (ETLS) in Awka, the capital of Anambra, on Friday. The workshop was themed “Exploring the Benefit of ECOWAS Trade Liberalisation Scheme in the Region.
The ETLS initiative of ECOWAS aimed to enhance cooperation and integration in trade, ensuring economic stability by creating an economic union within the region for the well-being of the community’s citizens. He said ETLS would give local manufacturers access to a market of over 400 million consumers across the 15 ECOWAS member states. According to Mr Tuga, it will also expand their customer base, boost revenues, and significantly contribute to the nation’s overall economic growth and prosperity. “Presently, Nigeria has 946 enterprises with over 10,000 products and the primary goal is to establish a customs union among all member states, with the ultimate objective of completely eliminating Customs duties and implementing a unified customs policy.
Benin Joins 16 other Countries to Accede to the Establishment Agreement for Afreximbank’s Impact Investment Subsidiary, FEDA (Afreximbank)
The Republic of Benin has become the latest African nation to accede to the Fund for Export Development in Africa (FEDA), the impact investment subsidiary of African Export-Import Bank (Afreximbank). With Benin’s accession to the FEDA Establishment Agreement, the total number of participating African countries has risen to 17, following Nigeria’s accession earlier this month.
The accession to the agreement demonstrates Benin’s support for Afreximbank’s efforts to broaden FEDA’s effectiveness by mobilizing its Member States to sign and ratify the FEDA Establishment Agreement and to support the organization’s impact investing objectives. The onboarding of new Members expands the reach of FEDA’s interventions and reflects the Fund’s unwavering commitment to its mandate of providing long-term capital to African economies, with a focus on industrialization, intra-African trade and value-added exports.
APPO, AfreximBank complete inspection for establishment of African Energy Bank in Nigeria (Vanguard)
The African Petroleum Producers Organisation (APPO) and AfreximBank have completed their inspection to validate the preparation of Nigeria in the establishment of the African Energy Bank (AEB). Ambassador Nicholas Ellah, the Permanent Secretary at the Ministry of Petroleum Resources made this known in a press release on Friday. Ellah said four countries that bidded for the giant project were Nigeria, Ghana, Benin and Algeria, appreciating South Africa, Egypt and Ivory Coast dropped their bid.
According to Ellah, the AEB is a “SupraNational Multilateral $5billion African Energy Bank that will specialize and facilitate financing of Africa’s trapped hydrocarbon deposits of – oil, gas, condensates as well as support energy transition dynamics and net zero 2060 commitments.”
The African Development Bank’s Desert to Power Initiative (AfDB)
The African Development Bank is the driving force behind one of the world’s most ambitious energy projects: the Desert to Power initiative aims to bring energy to one of the least developed and most marginal parts of the continent. This transformative and bold effort aims to turn Africa’s vast, sun-drenched Sahel region – one of the most vulnerable regions in the world – into a powerhouse of solar energy, targeting 11 countries: Burkina Faso, Chad, Djibouti, Eritrea, Ethiopia, Mali, Mauritania, Niger, Nigeria, Senegal, and Sudan. By harnessing the region’s immense solar potential, Desert to Power seeks to generate 10 gigawatts of solar power by 2030, thereby facilitating access to electricity for 250 million people.
Unlocking Africa’s critical mineral wealth: Energy transition can pave path to new prosperity (UNCTAD)
Ms. Grynspan has confirmed UN Trade and Development’s commitment to Africa remains unwavering as the organization steps into the future, and reiterated the belief in the transformative power of Africa’s critical mineral wealth, which offers boundless opportunities to catalyse sustainable development on the continent.
Africa is home to sizeable reserves of the world’s critical energy transition minerals: 55% of cobalt, 47.65% of manganese, 21.6% of natural graphite, 5.9% of copper, 5.6% of nickel, 1% of lithium, and 0.6% of iron ore globally. These minerals offer an opportunity to generate revenues for governments, finance development, overcome commodity dependence, create jobs and raise living standards across Africa. But the continent has yet to fully seize the opportunities presented by its natural resource endowments. Estimates show that African countries generate only about 40% of the revenue they could potentially collect from these resources.
Shipping losses hit all-time low despite increasing risks for the whole sector (Allianz)
Given as much as 90% of international trade is transported across oceans, maritime safety is critical. Thirty years ago, the global shipping fleet lost around 200 large vessels a year. This total fell to a record low of 26 in 2023, a decline of more than one third year-on-year and by 70% over the past decade. However, the fact that shipping is increasingly subject to growing volatility and uncertainties from war and geopolitical events, the consequences of climate change, as well as ongoing risks resulting from the trend for larger vessels means the sector will have its work cut out to maintain this status quo in future, according to marine insurer Allianz Commercial’s Safety and Shipping Review 2024.
“The speed and extent of the way the industry’s risk profile is changing is unprecedented in modern times. Conflicts such as in Gaza and Ukraine are reshaping global shipping, impacting crew and vessel safety, supply chains and infrastructure, and even the environment. Piracy is on the rise, with a worrying re-emergence off the Horn of Africa. The ongoing disruption caused by drought in the Panama Canal shows how the changing climate is affecting shipping, all at a time when it is having to undertake its most significant challenge, decarbonization,” says Captain Rahul Khanna, Global Head of Marine Risk Consulting, Allianz Commercial.
Celebrating Africa Day with the Theme: Education Fit for the 21st Century (AU)
In line with the theme “Education Fit for the 21st Century,” join us in celebrating Africa Day by engaging in conversations and sharing insights on the future of education in Africa. Together, we can create an education system that not only meets the demands of the 21st century but also ensures that every African child has the opportunity to thrive.
Education is a cornerstone for Africa’s growth and development, serving as a critical driver for socio-economic transformation and innovation. By focusing on education fit for the 21st century, we are equipping the next generation with the skills and knowledge needed to navigate and thrive in an increasingly complex and digital world. This theme aligns perfectly with Agenda 2063, the African Union’s strategic framework for the continent’s socio-economic transformation.
Agenda 2063 envisions a prosperous Africa based on inclusive growth and sustainable development, where education plays a pivotal role in achieving these goals. As we celebrate Africa Day with the theme “Education Fit for the 21st Century,” we call upon all stakeholders across all sectors to join us in this transformative journey.
The Secretary-General: Message on the Occasion of Africa Day 2024 (United Nations)
“On Africa Day, we celebrate this dynamic and diverse continent and the contributions of Africans to our world. The continent’s young and growing population, its rich natural resources, its breathtaking beauty and cultural diversity give it outsize potential.” — António Guterres
Inside AU’s struggle for self-sustenance (The New Times)
Speaking at the African CEO Forum in Kigali on May 17, Kenyan President William Ruto who is also African Union (AU) Champion for Institutional Reform laid out an ambitious plan to transform the AU to better meet the continent’s current needs with emphasis on reforming the union to enhance its role in economic negotiations, peace and security, and infrastructure development.
Ruto was speaking at the Africa CEO Forum in Kigali, a week before the AU’s Sub-Committee in charge of budget, administration, and finance matters convened for an annual retreat to adopt the 2025 budget. The 2025 African Union proposed budget, as presented by AUC Deputy Chairperson Dr. Monique Nsanzabaganwa, amounts to nearly $629 million for operational costs, programmes, and peace support operations.
In June 2015, African Heads of State and Government decided at their assembly in Johannesburg, South Africa that AU members would fund 100% of the operational budget, 75% of the program budget, and 25% of the peace support operations budget. This was to be achieved by applying a 0.2% levy on eligible taxable goods imported into AU member states from outside the continent.
However, nine years since the Johannesburg Decision and nearly seven years after the Kigali Decision on Financing the Union, member states still struggle to meet their assessed contributions. This shortfall creates a funding gap, leaving the African Union reliant on international partners.
The Ten-Year Strategy African Development Bank Group (2024 – 2033) (AfDB)
As the African Development Bank Group (the Bank) announces its Ten-Year Strategy 2024-2033, Africa and the world face deep challenges. After a decade of strong economic performance, countries across Africa have shown great resilience. But the continent must deal with a set of interlocking crises – some global, others originating within the continent – that threaten to undermine its hard-won gains.
Africa has emerged from the Covid-19 pandemic only to confront worsening food insecurity and a growing debt crisis. The impacts of climate change are intensifying and accelerating. Conflict and political instability have surged, while the youthful working age population continues to grow at a faster pace than jobs. With limited opportunities in their home countries, millions of Africa’s young people, the continent’s future, are seeking economic opportunities in other regions. These accumulating crises threaten to trap Africa in a cycle of emergency response. The continent urgently needs to shift resources into building sustainable and resilient growth that delivers jobs and equity.
This Strategy sets out how the Bank will take urgent action to support African countries as they manage these multiple hurdles. It shows how the continent can regain momentum towards the African Union’s Agenda 2063 and the Sustainable Development Goals (SDGs) while seizing opportunities to lock in lasting progress. The Strategy responds to the call for multilateral development banks (MDBs) to increase their focus on global and regional challenges as they affect the continent’s progress, with a focus on the priorities of African countries, individually and jointly, in these turbulent times.
New disciplines on regulation of services trade enter into force for four more members (WTO)
The new disciplines on services domestic regulation which entered into force at the 13th Ministerial Conference (MC13) in February for 45 WTO members have taken legal effect for four more members — Albania, Canada, El Salvador and the Republic of Korea. The disciplines have the potential to reduce trade costs by over USD 125 billion worldwide.
The disciplines on services domestic regulation seek to mitigate unintended trade-restrictive effects of measures relating to licensing requirements and procedures, qualification requirements and procedures and technical standards. By promoting transparency, predictability and due process, their goal is to make the regulatory environment of participating economies more conducive to business, especially for micro, small and medium-sized enterprises as well as women entrepreneurs.
Nation offers hope of sustainable future for the world (China Daily)
China’s contribution toward sustainable growth in the world encompasses a transformative journey that illuminates a path of progress for nations across the globe. Yet the manufacturing and fanning of allegations about China’s industrial “overcapacity” portends the opposite trend of over protectionism by some advanced economies.
For decades China struggled to modernize its industries and agriculture. Today it has ascended the value chain and reshaped global supply chains. It has grown into a manufacturing powerhouse that has harnessed the potential of intermediate goods trade and expanded its trade footprint to solidify its position as a global trading giant.
By fostering the development of primary manufacturing industries in partner countries, China is forging stronger ties and unlocking new avenues for mutual prosperity, bringing opportunities not only to the developing countries but also to capital-rich advanced economies. With its steadfast commitment to international development, China stands poised to enhance the collective well-being of humanity and foster a global community with a shared future.
Quick links
How free trade can boost sustainable agriculture in Africa (WEF)
Why BRICS+ may prove weaker than expected (D+C)
A new trade war offers no easy way back for old global order (The Economic Times)
DDG Ellard urges APEC leaders to help turn MC13 progress into concrete outcomes (WTO)
UN Development Programme launches next phase of flagship climate action initiative (UNDP) ‘
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Gas still has a crucial role to play in South Africa’s energy mix (Engineering News)
Gas has an important role to play in South Africa’s energy transition journey, Kearney partner Prashaen Reddy says amid calls for public comments on a draft Gas Master Plan, which was released for comment at the end of April. He notes that the Southern Africa region has had several recent gas finds across Mozambique, South Africa and Namibia, that allow for the development of indigenous resources to drive industrialisation, social development and economic growth.
Currently, the industry employs at least 70 000 people and contributes between R300-billion and R500-billion a year to South Africa’s GDP, based on the existing indigenous gas supply.
“Additionally, to maintain and grow the industrial base, there are few substitutes readily and economically available for gas in the energy-intensive industries; hence, industrialisation may further decline should no gas solution be found in the years ahead,” Reddy warns. He says gas to power is another critical enabler to stabilising the power sector as South Africa endeavours to balance its energy mix from being primarily driven by coal to other technologies as outlined in the recent draft Integrated Resource Plan 2023.
Small businesses can help South Africa fight unemployment if they get proper support (The Conversation)
South Africa has an alarming unemployment rate of approximately 32.1%. Solutions have been elusive. The unemployment rate has been consistently high for decades.
Our research has revolved around entrepreneurship. We have examined the “liability of newness” related to small and medium scale enterprises and entrepreneurial development in general. In particular, we’ve looked at the differences between very new small and medium scale businesses, and those that have established themselves in the market place. Our aim has been to understand vulnerabilities, and what support is needed to ensure longevity.
In a recent study, we examined the relationship between globalisation – the integration and interconnectedness of economies, societies and cultures across the world – the development of entrepreneurship in South Africa, and unemployment. The interaction between the three is key to informing what institutional support and policies should be put in place to create jobs.
We find that globalisation has a dual impact on entrepreneurial activity and development. On the one hand, it helps established businesses in creating jobs and reducing unemployment. With the proper support, globalisation can help new businesses grow into job-creating established businesses. This is done by giving local entrepreneurs new opportunities, such as trade, technology transfer, and access to new markets.
NRZ on track for US115m Afreximbank facility (The Chronicle)
The National Railways of Zimbabwe (NRZ) is making headway on its efforts to secure the US$115 million loan facility from the African Export-Import Bank (Afreximbank) after the Government approved the establishment of a Special Purpose Vehicle that will be used to service it.
NRZ board chair Advocate Mike Madiro said in an interview, “It (Afreximbank loan approval) is contingent to the establishment of an SPV and a feasibility study (on how the project will be rolled out) — those are the two fundamental conditions, which are supposed to be in place for Afreximbank to do their internal processes for approval upon confirmation of its bankability.”
“When that is done, the bank will now do its internal processes and we hope the bank will approve that project after which the drawdown of resources from the loan facility will ensue,” he said. Under the loan facility, US$81 million will be used to procure rolling stock from RITES Limited of India where NRZ is expected to receive nine locomotives and 315 wagons while US$34 million would be allocated towards infrastructural rehabilitation and expansion of the rail network.
Microsoft and G42 Invest $1 Billion in Kenya’s Digital Sector (We are Tech)
Microsoft and G42, a United Arab Emirates-based firm specializing in artificial intelligence and cloud computing, have announced plans to invest $1 billion in Kenya’s digital sector. The announcement was made through a press release issued by Microsoft on Wednesday, May 22.
The investment will be directed towards the construction of a data center in Olkaria, which will be powered entirely by renewable geothermal energy. G42 and its partners will oversee the development of this infrastructure to utilize Microsoft Azure in a new cloud region in East Africa. The data center is projected to be operational within 24 months after the signing of definitive agreements, scheduled to take place on Friday, May 24, in Washington, D.C.
The investment will also involve the development of four key pillars in collaboration with local stakeholders. These pillars include creating AI models in local languages and related research, establishing an innovation lab in East Africa, providing extensive digital skills training in AI, in international and local connectivity, and working with the Kenyan government to promote cloud services across East Africa.
Technology increasingly being used to improve control, accuracy in logistics value chains (Engineering News)
The freight and transport logistics sectors are seeing ever greater use of technologies in warehouses, as well for stock-picking, consignment loading and delivery checks, among other applications, as the sectors work to automate a range of processes and improve the accuracy of those processes. New capabilities were being created using existing systems that were integrated with new machine learning (ML), image recognition and AI solutions to deliver new insights, capabilities and controls, logistics risk management company Professional Risk and Asset Management group operations director Gerhard van Zyl said.
He was speaking during the Safety and Security in Transport and Logistics conference hosted by industry organisation the Chartered Institute of Logistics and Transport of South Africa on May 22, in Woodmead, Johannesburg.
“One of the things we are working on at the moment is to match imagery without human intervention from product loading onto the vehicle and then offloading,” he told attendees.
“The solution uses closed-circuit television (CCTV) present in the warehouse and in trucks, along with ML to match what has been unloaded from the truck to what was loaded, and that the pallet that is being delivered is the correct one for that client.”
Call for Zim-Zambia to strengthen trade cooperation (The Herald)
Zimbabwe and Zambia should take advantage of their historical ties to strengthen economic cooperation, the Permanent Secretary for Foreign Affairs and International Trade, Ambassador Albert Chimbindi, said yesterday.
Opening a two-day Joint Trade and Customs Committee meeting in Harare, in a speech read on his behalf by Chief Director in the Ministry, Rofina Chikava, Ambassador Chimbindi said the objective of the meeting was to continue the legacy of cooperation between the two countries, especially in promoting trade and investment, thereby improving the welfare of citizens.
The issues to be discussed include updates on an agreement on the avoidance of double taxation and the tripartite memorandum of understanding between Zimtrade, Zimbabwe Development Agency and the Zambia Development Agency.
The Common Market for Eastern and Southern Africa (COMESA) Secretariat, and the Government of Malawi, have today signed a Euro 900,000 sub-delegation agreement to construct a cross-border market in Mchinji District, 20km from the Mchinji/Mwami One Stop Border Post. COMESA Secretary General, Ms. Chileshe Mpundu Kapwepwe and the Minister of Trade and Industry, Hon. Sosten Gwengwe, signed the agreement in a virtual event.
The traders’ market which is located in Mchinji District in Malawi, is funded by the European Union, under the 11 European Development Fund (EDF), Small Scale Cross Border Trade Initiative (SSCBTI). The SSCBTI supports the provision of gender sensitive basic infrastructure for use by small scale cross border traders.
The availability of border market infrastructure will increase the connection between traders and customers and lead to reduced losses, especially in perishable stock, according to an assessment carried out by consulting firm, IMANI Development in May 2017. The assessment was conducted at the following border posts; Kasumbalesa (DRC and Zambia), Chirundu (Zambia and Zimbabwe), Nakonde/Tunduma (Zambia and Tanzania), Mwami/Mchinji (Zambia and Malawi) and Moyale (Ethiopia and Kenya). The assessment identified basic workspace infrastructure at the border as a major requirement of small-scale traders.
Jigawa seals trade, industrialisation pact with Nigeria-Arabian Gulf Chamber of Commerce (Premium Times Nigeria)
Jigawa State Governor, Umar Namadi, on Tuesday, presided over the historic signing of a Memorandum of Understanding (MoU) between Jigawa State and the Nigeria-Arabian Gulf Chamber of Commerce (NAGCC), which aims to promote trade and industrialization in the state. The MoU was signed during a colourful ceremony at the Government House, Dutse attended by members of the State Executive Council and a delegation from the NAGCC led by Kassim Gidado, the Waziri of Jama’are.
In his remarks, Mr Gidado expressed NAGCC’s commitment to fostering economic development and trade between Jigawa State and the Gulf region, stressing that the significance of this partnership has been in the making since 26 October, 2023, when they first approached the state for the partnership.
He highlighted the enormous potential Jigawa State holds, particularly in products like sesame seeds, hibiscus, and solid minerals.
Tinubu Seeks Stronger Intra-Africa Investment, Economic Integration (Leadership News)
President Bola Tinubu has called for synergy and stronger coordinated action to address economic frailties within African nations. He made the call at the State House yesterday during the presentation of Letters of Credence by newly-appointed ambassadors to Nigeria. The ambassadors who presented their credentials include Ambassador Edouard Nduwimana, Burundi Ambassador to Nigeria; Ambassador Mersole Mellejor, Philippines Ambassador to Nigeria, and the High Commissioner of Kenya to Nigeria, Isaac Parashina.
In his meeting with the Philippines ambassador, the president said Nigeria had embarked on a bold initiative to expand its natural gas production to meet domestic needs and increase exports. He encouraged the representative of the Southeast-Asian nation to attract investors from his country to explore opportunities in Nigeria.
Ambassador Mellejor acknowledged Nigeria’s leadership role and strategic position in Africa as the continent’s largest economy, population, and democracy. He said these strong credentials form the basis upon which his country seeks to expand economic ties with Nigeria.
Nigeria, Benin Republic Strengthen Ties To Boost Trade (Leadership News)
Nigeria and the Benin Republic have strengthened commercial and trade relations to boost economic activities in both countries. Briefing journalists after the bilateral meeting at the Anguwar Sule Wara in Benin Republic border station, Nigeria’s minister of foreign affairs, Yusuf Maitama Tuggar said the meeting was designed to boost trade and commerce between the two countries.
Tuggar said President Bola Ahmed Tinubu has directed that the bilateral relationship between Nigeria and the Benin Republic be reopened to strengthen trade and commerce in the two countries. The minister said the meeting identified some challenges such as infrastructure and security that the two sister nations must address. The minister said if Nigeria and Benin Republic borders had been better handled, they would have boosted revenue generation and the economies of the countries.
Benin Closes River Crossing With Niger In Escalating Trade Tensions (Barron’s)
Benin has blocked border crossings to Niger across the river between the neighbours, sources told AFP on Thursday, in an escalation of tensions since the military seized power in Niamey last July. Benin and Niger have engaged in increasing tit-for-tat accusations in recent weeks over the movement of goods, despite West African bloc ECOWAS in February lifting sanctions imposed on Niger’s military rulers.
Relations over the border are also complicated by a spillover from expanding jihadist conflicts in Niger and Burkina Faso that increasingly threaten Benin and its Gulf of Guinea neighbours Ghana and Togo. Benin initially announced the opening of its border at the same time as the lifting of ECOWAS sanctions. But the border has remained closed on the Niger side, irritating Beninese President Patrice Talon, who said Niger was treating them like “an enemy”.
A source close to the Benin government confirmed the river crossing had now been closed. “The river is part of the border. Niger says its borders with Benin are closed. It’s a consequence,” the source told AFP.
Abuja Action Plan on Sustainable Hydropower Development in Africa unveiled (International Water Power)
In a strategic move to bolster energy security and sustainability across Africa, the Abuja Action Plan on Sustainable Hydropower Development has been unveiled. Recognizing the critical role hydropower plays in the continent’s energy landscape, the plan aims to expand electricity supply by 50% by 2030 and quadruple it by 2050. Hydropower currently supplies 40% of sub-Saharan Africa’s electricity, underscoring its significance as a reliable and familiar technology.
The challenge lies in scaling up this capacity affordably while addressing climate change. Hydropower is championed as an affordable, renewable, clean, and green solution that can significantly enhance energy security and access. It also complements other renewable technologies like solar and wind, which require firm, dispatchable, and flexible resources that hydropower can provide.
The three-day workshop, held from 15 to 17 May 2024 in Abidjan, Côte d’Ivoire, was organised by the ECOWAS Centre for Gender and Development (ECGD). It brought together experts from ECOWAS, COMESA (Common Market for Eastern and Southern Africa), EAC (East African Community), women users of the 50MAWSP platform and partners such as the Spanish Cooperation, the African Development Bank (AfDB), USAID West Africa and the UN Women Office for West and Central Africa.
At the end of the three-day workshop, the three implementing partner RECs of the 50MAWSP project signed the Workshop Outcome Declaration, which summarises the agreements between RECs for the next steps in the implementation of the project. For reference, the 50MAWSP digital platform, launched in November 2019 and covering data collection in 38 African countries, is dedicated to supporting the economic empowerment of women entrepreneurs in Africa. Its main objective is to meet the need for financial and non-financial information to facilitate the growth and success of women in business.
Over 28 million migrants resided in GCC countries by 2017, with 12% from Africa. To address this growing trend, a historic two-day dialogue on Labour Mobility kicked off in Doha, Qatar. In her opening remarks, Ms. Angela Martins, the Ag. Director for Social Development, Culture and Sport, African Union Commission, emphasized that effective governance of labour migration is one of the top priorities for the African Union.
“The African Union has long championed rights of migrant workers, adopting various instruments such as the Agenda 2063, the Migration Policy Framework for Africa, the African Common Position on Migration and Development, and other protocols. We are committed to fostering collaboration and cooperation with member states and regions like the Gulf Countries to implement these frameworks effectively and harness the development potential of labour migration,” said the Ag. Director at the Technical session ahead of the High-Level dialogue on Labour Migration.
Technical experts at the historic dialogue in Doha delved into key areas for improving labour mobility and migrant protections. They also laid the groundwork for future discussions. Ministers officially launched the dialogue and unveiled the “Doha Declaration,” solidifying a shared commitment to ethical recruitment and safeguarding migrant worker rights.
ICYMI: ECOWAS, ITC launch West African Competitiveness Observatory to boost regional exports (ITC)
Policymakers and businesses in West Africa now have an online tool to track their countries’ trade competitiveness and to find new business opportunities in the region, with the launch of the West African Competitiveness Observatory.
The ECOWAS Commission and the International Trade Centre (ITC), with financial support of the European Union (EU), launched the online platform at a high-level event on 21 May to help unleash economic growth across West Africa, where more than half of intraregional export potential -- valued at $3.2 billion -- remains untapped. West Africa’s exports are more competitive within the region than on the rest of the continent or in global markets.
The Observatory offers three modules that enable policymakers to monitor and analyze trade competitiveness at both national and regional levels. Businesses can use the platform to identify business opportunities and engage with buyers and suppliers across markets in the region.
“Policymakers and businesses, use the Observatory for insights into your region’s great untapped trade potential and turn that potential into tangible economic benefits,” said ITC Executive Director Pamela Coke-Hamilton. “We hope to see businesses, especially small businesses, make the most of this tool to find buyers and enter new markets.”
The ECOWAS Regional Competition Authority (ERCA) as part of its mandate to support Member States in the competition matters conducted advocacy and sensitization on Competition and Consumer protection laws in Liberia from 20- 22 May 2024, in Monrovia, Republic of Liberia.
The Executive Director of ERCA, Dr. Konan Simeon KOFFI, on behalf of the Commissioner for Economic Affairs and Agriculture, Madame Massandjé TOURE-LITSE, welcomed all participants to the advocacy and sensitization meeting and expressed gratitude and thanks to the Liberia Ministry of Commerce and Industry for their willingness to collaborate with ERCA in hosting this meeting. This shows that the joint advocacy and sensitization programme on Competition policy is an example of the expected cooperation between ERCA and Member States competition authorities, thus consolidation of the regional competition framework. The Executive Director emphases collaboration between ERCA and national stakeholders in order to strengthen: (i) mechanism for collecting and sharing information and best practices, (ii) national ownership of the regional competition framework, (iii) capacities building of the stakeholders, and (iv) investigation and enforcement of competition law.
The opening statements were followed by presentations and discussions on ECOWAS competition framework, overview of the Competition Law of Liberia and Status of competition and consumer protection monitoring in Liberia. The meeting considered the importance of continue collaboration with stakeholders for enhanced awareness of competition issue and for the Liberian government to review the existing competition law to take into consideration the regional and continental framework, and in particular the creation of the National Competition Authority of Liberia for the implementation of the competition and consumer protection policy.
The meeting further adopted a recommendation for ECOWAS Regional competition Authority to accompany the Liberia in the process of law review, and by extension the Liberian Authority to use the competition laws to strengthen the development of Small and Medium Enterprises (MSMEs).
ECOWAS bloc under growing pressure (Africanews)
The Economic Community of West African States (ECOWAS) is facing a critical period with the challenges posed by the Alliance of Sahel States and economic instability in West Africa. Recent coups and economic sanctions have highlighted the organization’s weaknesses, exacerbating internal divisions.
To explore whether ECOWAS can overcome these obstacles and maintain its role as an economic pillar, we interviewed international economist Magaye Gaye from the West African Development Bank (BOAD) and the African Guarantee and Economic Cooperation Fund (FAGACE). “To stay on course, ECOWAS must develop policies for industrial complementarity, focus on energy, industry, integration complementarities, and intra-regional trade.” - Magaye Gaye, international economist.
Since May 6, Benin and Niger have been in crisis due to Beninese President Patrice Talon’s decision to block the loading of Nigerien crude oil in Beninese waters, citing informal practices and protesting against Niger’s closure of their common border. This situation has been exacerbated by accusations of blackmail from Nigerien Prime Minister and the involvement of China, which built a pipeline for Nigerien oil exports. Surprisingly, Benin lifted the embargo on May 15 after fruitful negotiations with a Chinese delegation, although the reopening of the Nigerien land border remains uncertain.
The world is rushing to Africa to mine critical minerals like lithium – how the continent should deal with the demand (The Conversation)
Global demand for critical minerals, particularly lithium, is growing rapidly to meet clean energy and de-carbonisation objectives. Africa hosts substantial resources of critical minerals. As a result, foreign mining companies are rushing to invest in exploration and acquire mining licences.
According to the 2023 Critical Minerals Market Review by the International Energy Agency, demand for lithium, for example, tripled from 2017 to 2022. Similarly, the critical minerals market doubled in five years, reaching US$320 billion in 2022. The demand for these metals is projected to increase sharply, more than doubling by 2030 and quadrupling by 2050. Annual revenues are projected to reach US$400 billion.
In our recent research, we analysed African countries that produce minerals that the rest of the world has deemed “critical”. We focused on lithium projects in Namibia, Zimbabwe, the Democratic Republic of Congo (DRC) and Ghana. We discovered these countries do not yet have robust strategies for the critical minerals sector. Instead they are simply sucked into the global rush for these minerals.
We recommend that the African Union should expedite the development of an African critical minerals strategy that will guide member countries in negotiating mining contracts and agreements. The strategy should draw from leading mining practices around the world. We also recommend that countries should revise their mining policies and regulations to reflect the opportunities and challenges posed by the increasing global demand for critical minerals. Otherwise, African countries that are rich in critical minerals will not benefit from the current boom in demand.
New revenue streams: Using Africa’s vast renewable energy and natural resources for premium carbon credits (Africa Renewal)
African countries could leverage their vast renewable energy resources, tropical forests, peatlands, and marine ecosystems to export premium carbon credits, providing a new revenue stream, according to the 2024 Economic Report on Africa by the United Nations Economic Commission for Africa (UNECA). The report says, carbon markets could support Africa’s goals of resilience and prosperity, in line with Agenda 2063. They also present a potential path for achieving the Paris Agreement’s climate goals.
“A failure, however, to ensure credit additionality, appropriate governance, and high enough prices could lead to perverse market incentives that increase carbon emissions and slow the climate transition on the continent,” says the report, launched at the recently concluded 10th Africa Regional Forum on Sustainable Development (ARFSD-10) in Addis Ababa, Ethiopia.
Nassim Oulmane, Acting Director of ECA’s Technology Climate Change, and Natural Resource Management Division explains that there are two types of carbon markets that Africa could invest in: the regulatory compliance market and the voluntary carbon market (VCM). But so far, credits from the VCM, where many African countries participate, have been only a small fraction of those supplied by the overall regulatory compliance market.
‘Be part of the plan’ to end nature loss on Biodiversity Day (UN News)
The appeal on the International Day for Biological Diversity urges governments to fully implement a landmark agreement to halt and reverse nature loss by mid-century, adopted by 196 Member States in 2022.
In his message to mark the International Day, UN Secretary-General António Guterres warned that the “complex web of biodiversity” which sustains all life on Earth is “unravelling at alarming speed – and humanity is to blame.” ”We are contaminating land, oceans, and freshwater with toxic pollution, wrecking landscapes and ecosystems, and disrupting our precious climate with greenhouse gas emissions,” he said.
See International Day for Biological Diversity
UN biodiversity conference 2024 to feature first-ever ‘Trade Day’ (UNCTAD)
With one million species currently at risk of extinction, the state of global biodiversity loss spells trouble for nature and economies. That’s why back in 2022, world leaders at a UN conference agreed on a global biodiversity plan aimed at protecting and repairing Earth’s biological wealth.
To address the triple planetary crises of climate change, biodiversity loss, and pollution, trade remains a crucial part of the plan, Deputy Secretary-General Pedro Manuel Moreno reaffirms at an event gathering international organizations in Geneva. “It requires integrating environmental and biodiversity-friendly considerations into our trade and development policies, promoting sustainable practices, reducing waste and pollution, and protecting natural habitats,” says Deputy Secretary-General Moreno in his statement.
In 2022, trade in biodiversity-based products generated some $3.4 trillion, accounting for about 17% of global export value. For low-income economies, that share even surpassed 40% over the past decade.
With the right policy and governance approach – including criteria and principles such as BioTrade − sustainable trade can flourish and, in turn, nourish the very biodiversity on which it relies, while providing livelihood for communities, especially the most marginalized.
Harnessing small business action to achieve the Biodiversity Plan (ITC)
Over half of the global GDP, a staggering $44 trillion, is moderately or highly dependent on nature, according to a 2020 World Economic Forum study. This dependency is particularly pronounced in rural communities, where forest ecosystems can contribute significantly to livelihoods. Take India, for example, where forests represent only 7% of the country’s GDP but sustain 57% of rural communities.
Around 1.6 billion people depend on forests for their livelihood, including some 70 million indigenous people. At the same time, the small business sector represents 90% of the world’s businesses and more than half of global employment.
Fostering sustainable business models in biodiversity-based sectors is essential to delivering inclusive and sustainable socio-economic development
Biodiversity-based sectors leverage nature and ecosystem services to create products and services that benefit both people and the planet. These sectors encompass a diverse range of goods, from natural foods and cosmetics to handicrafts and ecotourism experiences.
The Southern African Development Community (SADC) has underscored the importance of biodiversity conservation for agriculture and food security as part of the commemoration of the International Day for Biodiversity which falls on 22 May every year.
On this day, SADC reflects on its role in preserving plant genetic resources, through the SADC Plant Genetic Resource Centre (SPGRC) as a source of direct food and nutrition as well as novel genes to mitigate against climate change. Through this initiative, the SADC region has to date collected and secured in regional and national genebanks over 80 000 unique accessions of plants that form the core sources of food for the people in SADC.
SADC is currently implementing the Southern Africa Regional Plant Genetic Resources Conservation and Sustainable Utilization Strategy which seeks to promote collection, safeguarding and sustainable use of plant genetic resources for food and agriculture to enhance the resilience of farming and food systems for improved food, and nutrition security and livelihoods in the SADC region.
From bees to earthworms, from coral reefs to rain forests - biodiversity helps to ensure our food diversity and must be key to transforming our food production systems, the Food and Agriculture Organization of the United Nations underlined today. As it marked International Day for Biological Diversity, FAO launched its updated action plan for Mainstreaming Biodiversity Across Agricultural Sectors and prepared to embark on several new biodiversity-related initiatives.
“Biodiversity is the potential of food diversity in the future,” FAO Director-General QU Dongyu said in a video message for UN celebrations of the day. Qu said biodiversity: “is what we farm, catch, harvest and cultivate. It is what supports our food networks from pollinators to micro-organisms in our soils. It is what prospers livelihoods of farmers, forest managers and dwellers, fishers, livestock keepers and pastoralists across the world.”
FAO this week launched its 2024–27 Action Plan for the Implementation of the FAO Strategy on Mainstreaming Biodiversity Across Agricultural Sectors. The plan supersedes an earlier 2021-2023 document. It has been further streamlined better to serve the strategy’s aims to reduce the negative impacts of agricultural practices on biodiversity, to promote sustainable agricultural practices and to conserve, enhance, preserve and restore biodiversity as a whole.
The new FAO Action Plan fully aligns with the Biodiversity Plan and includes FAO’s Biodiversity Knowledge Hub, providing a ‘one-stop shop’ to facilitate access to knowledge on biodiversity for food and agriculture. It compiles over 350 tools, guidelines and other resources on biodiversity developed by FAO that can be searched and filtered, including by targets of the Biodiversity Plan.
Argentina: Transforming port management for sustainable development (UNCTAD)
Around 80% of international trade in goods is carried by sea, giving ports a crucial role in global production and distribution networks. Consequently, port management features high on the agenda at the first-ever UN Global Supply Chain Forum currently underway in Barbados through 24 May. The weeklong forum seeks to tackle, among others, the most pressing issues facing ports worldwide, ranging from building resilient supply chain and leveraging digital technology to advancing environmental sustainability.
The discussions there speak volumes to Marcelo Teper, who works for Argentina’s General Administration of Ports. The organization is represented at the forum, as part of the TrainForTrade port management network, to share country-specific experience. “A port is not simply a centre for loading and unloading goods, but a key player in the logistics chain that provides services and facilities to streamline import and export process”, Mr. Teper notes.
Members seek to improve transparency in import licensing regimes (WTO)
WTO members discussed ways to improve the transparency of import licensing regimes at a meeting of the Import Licensing Committee on 21 May. The Chair, Mr Nat Tharnpanich of Thailand, emphasized the importance of compliance with import licensing notification requirements and encouraged members to make use of the newly launched Import Licensing Notification Portal.
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Unlocking growth: Cross-border trade gives African entrepreneurs access to new markets (IOL)
Fast reform, targeted protection key to boost Africa’s agriculture (New Business Ethiopia)
New version of the rules for determining the origin of goods from developing and the least developed countries approved (Eurasian Economic Commission)
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EU carbon levy: SA heads for clash with bloc (Daily Maverick)
The EU insists that its plan to put a price on the carbon emissions of some imports from 2026 is intended purely to counter global warming. But South Africa contends that, in reality, the EU’s carbon border adjustment mechanism (CBAM) is a unilateral and protectionist trade measure that will cost the South African economy more than R2-billion a year.
EU trade commissioner Valdis Dombrovskis says the CBAM will not distort trade as the EU intends to put the same price on the carbon emissions of imports as it does on those of its own producers, so the CBAM is compliant with World Trade Organization (WTO) rules. But Minister of Trade, Industry and Competition Ebrahim Patel retorts that the CBAM cannot be considered compliant because the WTO has not signed off on it, and South Africa is consulting other countries about a possible challenge to the mechanism at the WTO.
But Minister of Trade, Industry and Competition Ebrahim Patel retorts that the CBAM cannot be considered compliant because the WTO has not signed off on it, and South Africa is consulting other countries about a possible challenge to the mechanism at the WTO.
Patel rejected Dombrovskis’s assurances that the CBAM was a purely environmental measure and not a trade measure. He compared it with the WTO’s health standards on food, such as those that apply, for example, to bird flu. “It’s not a trade matter. It’s a health and safety matter. But it has a trade impact because it could be a reason to block chicken imports into your country. Because it has a trade impact, we have sanitary and phytosanitary agreements that are reached at the WTO.”
Poultry producers welcome lift on import ban (The Namibian)
The Poultry Producers’ Association of Namibia (PPA) has welcomed the government lifting the ban of chicken imports from South Africa. PPA chairperson Louis Kleynhans says as long as the poultry products are sourced from farms that are free from bird flu and are brought into the country legally, his association has no problem with that. This follows the recent lifting of the import ban of poultry meat by the Directorate of Veterinary Services.
In a notice dated 15 May 2024, chief veterinary officer Albertina Shilongo announced the resumption of the importation of poultry meat from South Africa into Namibia. “It should be noted that only poultry meat derived from live poultry originating from bio-secure farms as listed by the veterinary authority of South Africa will be permitted to be imported into Namibia,” said Shilongo.
Kenya, United States commit to complete trade negotiations (Capital Business)
Kenya and the United States of America (USA) have agreed to complete ongoing trade negotiations under the Strategic Trade and Investment Partnership (STIP). This was said during the fifth round of STIP negotiations between USA Trade Representative Katherine Tai and Kenya’s Cabinet Secretary (CS) for Investment, Trade, and Industry, Rebecca Miano.
CS Miano said that the two sides had made significant progress in several areas, including anticorruption, micro, small, and medium-sized enterprises (MSMEs), domestic service regulation, and the first tranche of agriculture text. “These provisions are designed to facilitate agricultural trade and advance food security; prevent and combat bribery and other forms of corruption; empower MSMEs in both economies; and ensure that service suppliers are treated fairly and in a transparent manner,” CS Miano explained.
The two sides recently concluded conceptual discussions on how STIP can advance the full, equitable, and meaningful participation in international trade and investment of all persons, including women, youth, persons with disabilities, other vulnerable populations, and the African Diaspora.
See also: Visit by Kenyan president can open the door to greater African trade, investment (The Hill)
Value of Exports Under AGOA Act Drops to KSh 50.8Bn (The Kenyan Wall Street)
The value of exports of apparels to the US market under the African Growth and Opportunity Act (AGOA) declined by almost Ksh6 billion last year, impacting on direct jobs supported by the programme.
As indicated by KNBS in the 2024 Economic Survey, the value of exports under the Agoa arrangement declined to KSh 50,802 billion last year. Total sales from Export Processing Zones decreased to KSh 111.4 billion in 2023 from KSh 116.3 billion in 2022, as value of exports reduced by 1.5 per cent to KSh 105.0 billion in 2023. The decrease was mainly due to reduced orders for some garments and agro processing enterprises. Domestic sales from Export Processing Zones, which include sales to duty free shops, decreased from KSh 9.7 billion in 2022 to KSh 6.4 billion in 2023.The number of gazetted Export Processing Zones as at end of December 2023 stood at 101 compared to 89 in 2022. The zones which were privately owned and operated were 91 while 10 were public.
The direct employment under AGOA reduced to 58.0 thousand persons in 2023 compared to 66.3 thousand persons recorded in 2022.
Manufacturers explain how new taxes have made Kenya to be flooded with EAC products (People Daily)
The Kenya Association of Manufacturers (KAM) has linked the spike of products from other East African countries in the Kenyan market to new tax measures. Speaking on Wednesday, May 22, 2024, KAM Chief Executive Officer (CEO) Anthony Mwangi indicated that the new levies and taxes have majorly burdened Kenyan producers forcing them to slow down their operations. Instead of mass production, Mwangi noted that most manufacturers have resolved to import products from other EAC markets which are affordable.
“Kenya operates within the EAC Common market, COMESA, and now AfCFTA. Any fees, levies, and duties imposed by the Government of Kenya are domestic taxes that affect only Kenyan products and companies. Consequently, Kenyan companies and products become uncompetitive, leading to our market being flooded with products from other EAC and COMESA countries,” Mwangi stated. “For instance, Kenya used to be the largest exporter of paper and steel products to the EAC, but due to the Finance Act 2023, we have become an importer of these products.”
According to Mwangi, the situation is set to be worsened if the Finance Bill 2024 is passed without amendments. Mwangi argued that the Export Investment Promotion Levy (EIPL) on the paper, steel and cement sectors will have a major negative effect on the construction industry.
Tanzania Loses Lucrative Oil Deals With Rwanda & 2 EAC Countries to Kenya (Kenyans.co.ke)
Kenya has moved to counter Tanzania’s oil trade ambitions by seeking deals with Rwanda, the Democratic Republic of Congo (DRC) and South Sudan.” Reports indicate that Kenya is already on the verge of securing a deal with Rwanda through Kenya Pipeline Company (KPC). The deal which is expected to be signed within 90 days will see Paul Kagame’s administration import oil through the Port of Mombasa instead of the Dar es Salaam Port in Tanzania.
This presents a significant blow to Tanzania considering plans to use its ports to transport oil to Rwanda have been on the pipeline since 2021. Apart from the Kigali deal, already, a delegation from KPC is in DRC trying to secure a similar agreement. Kenya has already ramped up investment in advanced infrastructure to ensure South Sudan relies on the Port of Mombasa for its oil needs.
New evidence reveal Apple sourcing minerals from conflict areas in east DRC (The East African)
International lawyers representing the government of the Democratic Republic of Congo said on Wednesday they had new evidence gathered from whistleblowers, which deepened concerns that Apple could be sourcing minerals from conflict areas in eastern Congo. In a statement, the lawyers urged Apple to answer questions about its supply chain in the country, and said they were evaluating legal options. Apple did not immediately respond to a Reuters request for comment.
Congo’s lawyers notified Apple CEO Tim Cook on April 22 of a series of concerns about its supply chain, and also wrote to Apple subsidiaries in France, demanding answers within three weeks.
The Amsterdam & Partners LLP law firm has been investigating allegations that minerals mined in Congo by several companies and armed groups are being smuggled out through Rwanda, Uganda and Burundi. The firm said in a statement on Wednesday that, four weeks later, “the tech giant has remained silent and neither answered nor even acknowledged receipt of the questions.”
Asia, Sadc are Tanzania’s key trading partners (The Citizen)
Tanzania’s trade sector grew by 4.3 percent in 2023, with Asian and Southern African Development Community (Sadc) nations emerging as the country’s leading trading partners. Requesting Parliament to endorse Sh110.89 billion as her docket’s 2024/25 budget in Dodoma on Tuesday, Industry and Trade minister Ashatu Kijaji said the sector grew by 3.9 percent in 2022. She added that the trade sector’s contribution to GDP was 8.3 percent in 2023 compared to 8.2 percent in 2022
Tanzania’s exports to Asian countries, including China, India, Japan and the United Arab Emirates (UAE), stood at Sh7.48 trillion in 2023. Although this represented a 31.6 percent decrease from Sh10.9 trillion worth of exports registered in 2022, Asian countries remained Tanzania’s key trading partners. On the other hand, Tanzania imported goods worth Sh21.52 trillion from Asian markets in 2023, slightly lower than the 2022 figure of Sh23.32 trillion.
Customs Intercepts trucks load of Donkey products, others, arrests 4 (Vanguard)
The Federal Operations Unit Zone ‘B’ of the Nigerian Customs has intercepted trucks load of illegal donkey meat and bones, hard drugs and other illegal goods with a Duty Paid Value of over N3 billion.
Comptroller of the Zone ‘B’ Federal Operations Unit, Ahmadu Bello Shuaibu while briefing the media on the activities of the Unit from 17th April to 17th May 2024 in Kaduna on Tuesday, said of great importance is the interception of the illegal products of donkey perpetrated by some unscrupulous elements with no regard for the lives and preservation of endangered species like the donkey which is near extinction.
He said the illegal trading clearly contravened Section 55 (1) paragraph c and i (1) of the NCS Act 2023 which says that “Import and Exports shall where applicable be subject to prohibitions and restrictions relating to: (c) The protection of the health and life of humans, animals, or plants; (i) Controlled goods imported or exported in line with relevant International laws, conventions and agreements (1) relevant International laws, Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
Ethiopia on track for 7.9pc economic growth in 2023/24 fiscal year, state says (The East African)
The Ethiopian government has announced that the country’s economy is on track to achieve a projected 7.9 percent growth rate for the current Ethiopian 2023/2024 fiscal year, which began on July 8. The performance in the country’s agriculture, industry and service sectors over the first nine months of the fiscal year indicates that the target is attainable, said Fitsum Assefa, Ethiopian minister of Planning and Development, as reported by state-affiliated Fana Broadcasting Corporate on Monday.
Highlighting the “impressive performance” of various economic sectors, Assefa said agricultural products have achieved commendable outputs. The industrial sector has demonstrated significant growth, and the service sector has also seen notable success, particularly in transportation, tourism, and other key areas. Ethiopia has generated about $2.5 billion from the export of goods and $5.8 billion from service exports. The country aims to reach lower-middle-income status by 2025.
Algeria: Investing in Data Key for Diversified Growth (World Bank)
Algeria’s economic growth remained dynamic in 2023, with GDP recording a 4.1 percent increase, driven by robust performance in the nonhydrocarbon and hydrocarbon sectors, according to the World Bank’s Spring 2024 Algeria Economic Update. Economic activity was stimulated by dynamic private consumption and strong investment growth, fueling a marked increase in imports. Hydrocarbon production was supported by record-high natural gas production, compensating for the decline in crude oil production amidst voluntary OPEC quota reductions.
Despite the decline in global hydrocarbon prices and an increase in imports causing Algeria’s’ trade balance to shrink, the country’s foreign reserves continued to increase, reaching a comfortable 16.1 months of imports by the end of 2023. Consumer price inflation moderated to 5.0 percent in the first quarter of 2024, down from 9.3 percent in 2023, aided by a strong dinar and a decrease in fresh food and import prices.
Despite challenging external conditions, Rwanda’s economy maintains robust growth. Real GDP growth surpassed expectations in 2023 at 8.2 percent, with services, construction, and post-flood recovery in food crop production key contributors. While fiscal consolidation may temporarily dampen growth, a rebound to 7.3 percent is anticipated in the medium term. Inflation has declined steadily since January 2023 to 4.2 percent in March, thanks to a slowdown in food prices and core inflation. The current account deficit widened more than expected in 2023, but international reserves remain adequate at about 4.1 months of imports at end-2023.
Going forward, the policy mix should prioritize macroeconomic and financial stability, fiscal sustainability, and the restoration of buffers. A carefully planned fiscal stance is needed to mitigate the impact of the 2023 floods while maintaining a credible and balanced fiscal consolidation over the medium term. Monetary policy should target inflation within the desired range, while maintaining exchange rate flexibility to manage external shocks. Furthermore, vigilant oversight of financial stability risks, particularly concerning large exposures and rapid credit growth, is important.
IFC and Absa to boost East Africa coffee trade with US$60 million facility (The Independent Uganda)
The International Finance Corporation, a member of the World Bank Group, has partnered with Absa Group Limited, a South African-based bank intends to extend US$60 million commodity trade finance facility to Volcafe, a leading global green coffee merchant, to strengthen the company’s operations in East Africa, supporting tens of thousands of coffee farmers in the region.
The financing will provide working capital to facilitate the purchase of coffee cherries – the fruit from which coffee beans are extracted – from smallholder farmers and local traders, as well as the processing, storage, and transport of coffee to export ports.
East Africa is a coffee-growing hub, accounting for over 80 percent of the continent’s production and 10 percent of the global total. An estimated five million smallholder farmers rely on the industry for jobs and livelihoods in the region. However, many smallholder farmers lack access to relevant financial support, and crop production is impacted by the unpredictable effects of climate change.
African economies have become less diversified and the competitiveness of their exports has declined, leaving the continent vulnerable to external shocks. In addition, African countries are not transforming their economies at a consistent or steady rate. These are some of the key findings of the latest African Transformation Index (ATI), a tool used to measure the progress of African countries in relation to economic transformation. The 2023 index was launched on 20 May during a summit hosted by the African Center for Economic Transformation (ACET), the University of Pretoria’s Faculty of Economic and Management Sciences and Future Africa.
University of Pretoria Interim VC and Principal, Professor Themba Mosia, said: “The context within which we convene today is one of both urgency and opportunity… The imperative for economic transformation has never been more pressing, as underscored by ACET’s pioneering work in introducing the concept of ‘Growth with DEPTH.’ This analytical framework, focusing on Diversification, Export competitiveness, Productivity increases, Technological upgrading, and Human well- being, provides a roadmap for sustainable economic progress,” continued Prof. Mosia.
Raila says to champion free movement under an African passport (Capital News)
Raila Odinga has promised to champion free movement within the African continent to promote trade. The African Passport, an initiative coined by the African Union (AU) in 2018, proposes to remove restrictions on Africans’ ability to travel, work and live within the continent. It seeks to transform “restrictive laws and promote visa-free travel to enhance the movement of all African citizens in all African countries”.
He spoke on Wednesday when he hosted, separately, Netherlands ambassador to Kenya Maarten Brouwer and his Egypt counterpart Wael Nasreldin Attiya. “I underscored the importance of a phased, evolutionary approach to tackle issues like multiple currencies, numerous visa requirements, and various air traffic control regulations. I believe the time has come for the introduction of an AU passport to ease travel across Africa,” Odinga said. “Together, we can pave the way for Africa’s takeoff, fostering a continent that is integrated, prosperous, and unified.”
Grand Finale of the Support towards Industrialisation and the Productive Sectors (SIPS) Programme (SADC)
The grand finale of the Support towards Industrialisation and the Productive Sectors (SIPS) Programme was held on 21 May 2024 at the Avani Hotel in Gaborone, Botswana. This event marked a significant milestone in the discourse on regional economic integration and industrialisation within the Southern African Development Community (SADC) region.
The SIPS programme, a cornerstone initiative of GIZ’s Cooperation for the Enhancement of Southern African Development Community (SADC) Regional Economic Integration (CESARE) programme, was funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union (EU) with a budget of over 20 million euros. This programme, a joint action between SADC, the German Government and the EU, aims to promote self-sustaining economies, reduce import dependence and strengthen regional resilience, with a particular focus on the agro-processing and pharmaceutical sectors in the SADC region.
ECOWAS, ITC Launch West African Competitiveness Observatory to Boost Regional Exports (ECOWAS)
Policymakers and businesses in West Africa now have an online tool to track their countries’ trade competitiveness and to find new business opportunities in the region, with the launch of the West African Competitiveness Observatory. The ECOWAS Commission and the International Trade Centre (ITC), with financial support of the European Union (EU), launched the online platform at a high-level event on 21 May 2024, in Abuja, the Nigerian Capital city, to help unleash economic growth across West Africa, where more than half of intraregional export potential, valued at $3.2 billion, remains untapped. West Africa’s exports are more competitive within the region than on the rest of the continent or in global markets.
The West African Competitiveness Observatory serves as a monitoring tool for assessing the trade competitiveness of West African countries and the region. Its primary function is to aid policymakers in crafting policies that promote trade competitiveness and facilitate the development of value chains, which also support local firms, especially small businesses, in integrating into regional value chains.
“The Observatory will provide important information for Policy makers and businesses to take advantage of international markets. Supporting SMEs to effectively access the market and generate employment and contribute to economic growth,” stated Madame Massandjé TOURE-LITSE.
Africa Pledges to Triple Fertilizer Production and Distribution to Empower Small Farmers (AU)
African Heads of State and Government united to bolster agricultural sustainability and enhance smallholder farmer livelihoods by endorsing the Nairobi Declaration articulating the outcomes of the Africa Fertilizer and Soil Health Summit convened in Nairobi, Kenya from the 7th to 9th May 2024. In recent years, there has been a significant increase in local manufacturing of mineral fertilizers with over $15 billion of investments by the private sector. However, even as Africa’s mineral fertilizer production is estimated at 30 million metric tons annually, most of it is exported outside the continent. Majority of Member States are still over-dependent on imported fertilizers, especially non-phosphate-based fertilizers which exposes Africa to external market shocks and price volatility.
Thirteen (13) critical points are outlined on the Nairobi Declaration on the implementation of the commitments to among others, triple the domestic production and distribution of certified quality fertilizers by 2034. This ambitious initiative aims to uplift smallholder farmers by ensuring they have access to the essential inputs necessary for enhancing agricultural productivity.
pdf Nairobi Declaration: 2024 Africa Fertilizer and Soil Health Summit (406 KB)
Geopolitical rivalries are costly for global businesses (World Economic Forum)
International trade is under extraordinary pressure, experts warn, as crises ranging from continued supply chain disruptions to heightened geopolitical rivalries compound stains on the global economy. Moreover, the merits of free trade are increasingly being questioned in economies around the world.
“We’ve had a sequence of shocks which have hit the world economy,” Simon Evenett, the founder of the St. Gallen Endowment for Prosperity Through Trade, a Switzerland-based trade policy think tank, said in an interview with the World Economic Forum. The benefits of globalization, Evenett added, are “potentially at risk if geopolitical rivalry gets too far out of control.”
Evenett, who is also a member of the World Economic Forum’s Trade and Investment Council, is a contributor to a new white paper, The Costs of Geopolitical Rivalry for Business: Ten Lessons for Better Policy Design, which provides analysis on how corporations and policymakers can best prepare for and respond to the various geopolitical pressures fragmenting the global economy. The paper is based on interviews with over a dozen senior executives from international businesses representing a range of manufacturing and service sectors.
Global trade could more than double in 2024. Here’s why (World Economic Forum)
Global trade growth is set to increase by more than two-fold this year, driven by low inflation and a booming US economy. That’s according to the three major international economic organizations – the International Monetary Fund (IMF), the Organization for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO) – which all forecast an uptick in global trade flows in 2024.
The OECD expects global trade in goods and services to grow by 2.3% this year and 3.3% in 2025 – more than double the 1% growth seen in 2023. The first OECD Economic Outlook in 2024, published in April, expects falling inflation will enable central banks to start lowering interest rates, but adds that real rates are likely to remain “above estimated neutral levels”. Meanwhile, the IMF’s latest World Economic Outlook puts world trade growth at 3% and 3.3% for 2024 and 2025, respectively, despite revising down its projections from earlier in the year. And the WTO projects world merchandise (goods) trade volumes to grow 2.6% and 3.3% in 2024 and 2025, respectively, after a significant decline last year.
Despite the cautiously optimistic outlook delivered by the IMF, OECD and WTO, world trade is not out of the woods yet.
DDG Ellard calls for more inclusive trade policies at WTO Chairs Programme event in Peru
Delivering a keynote speech at a WTO Chairs Programme event on trade and gender in Lima, Peru, on 16 May, Deputy Director-General Angela Ellard noted the contribution of WTO Chairs to helping governments design evidence-based policies on inclusive trade and women’s economic empowerment. She encouraged the participants to continue their collaboration and innovation to build a future where the benefits of international trade are shared equitably by all.
DG Okonjo-Iweala cites members’ desire to complete unfinished business from MC13
WTO members are eager to complete the unfinished business pending from the organization’s 13th Ministerial Conference (MC13) in Abu Dhabi earlier this year and find ways to advance the work in Geneva instead of waiting for a future ministerial to deliver results, Director-General Ngozi Okonjo-Iweala said at a meeting of the WTO’s General Council on 22 May.
International Day for Biodiversity calls for collective action to protect biological resources (SAnews)
As the world celebrates International Day for Biodiversity (IDB), Minister of Forestry, Fisheries, and the Environment Barbara Creecy, has called on all South Africans to participate in restoring and protecting South Africa’s biological resources. Cabinet recently approved the White Paper on the Conservation and the Sustainable Use of South Africa’s Biological Diversity as the guiding framework, which sets out the goals and objectives aligned with the Kunming-Montreal Global Biodiversity Framework (GBF).
“South Africa is rich in biodiversity, which is crucial for our ecosystems to function effectively, providing us with clean air, water and medicinal resources amongst the many benefits we derive. The White Paper is a milestone achievement for South Africa, as it is aspirational and advocates for a society where all people have a high quality of life, a voice and a nurturing earth supporting them,” said Creecy.
Quick links
Leveraging E-Payments for Financial Inclusion in Ethiopia (World Bank Blog)
Abuja Light Rail ready for commissioning (Premium Times Nigeria)
AfCFTA: Potentially costly at first, but promising great rewards (ISS Africa)
Grain Becoming Russia’s Tacit Weapon in Confrontation With the West (Jamestown)
Webinar looks at use of digital technologies to improve supply chain procedures (WTO)
Long, dangerous journeys on the rise but migration drives prosperity (UN News)
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Freight Rate Frustrations (Investec)
It’s no secret that carriers are not able to meet their scheduled transit times. Anchorage delays outside South African ports have improved over the past few weeks, but unfortunately this is due to port omissions and a reduction in inbound capacity, and not because of improved performance by Transnet.
Equipment breakdowns remain a major issue for the ports and therefore negatively impact port operation. Vessel berthing delays remain on average between 10 to 16 days in Durban and between five to eight days at Coega and Cape Town ports.
Carriers will continue to omit port calls or re-route vessels at short notice should they foresee severe delays to their schedules. A majority of vessel sailings are running behind schedule into and from South Africa. Additional lead time still needs to be factored in until further notice.
Summit emphasises imperativeness of supporting SMMEs (Engineering News)
Small, medium-sized and microenterprises (SMMEs) in the country are grappling with various challenges, including a lack of coordination between the public and private sectors, financial support, addressing the skills gap and empowerment through funding and government support.
Despite this, SMMEs have often managed to remain resilient in the face of these challenges. Moreover, there are measures that can be undertaken to mitigate the challenges, such as mentorship of entrepreneurs, implementing the correct culture and proper leadership to address organisational issues.
For their part, entrepreneurs should focus on bolstering their emotional intelligence, self-awareness, and social skills, as well as networking and building relationships with the requisite stakeholders to further their goals and businesses, speakers outlined during the Absa – South African Chamber of Commerce and Industry (Sacci) National SMME Summit, held in Sandton, on May 21.
Building strong supply chain for competitive Kenyan perishable trade (Africa Aviation News)
Kenyan flower and perishable trade is at a crossroads. While it dominates the foreign markets and is preparing to fly high, global competition is rising, logistics infrastructure is inadequate, freight rates are rising, and geopolitical implications are not helping. However, there are opportunities for a sustainable, digitalised future.
“Kenya’s floriculture contributes 1 percent of the national GDP, however, with global competition intensifying, especially from Latin America, Kenya’s floriculture faces multifaceted challenges.” These are the words of Lina Jamwa, membership, advocacy and communications manager, Kenya Flower Council, who emphasised the flower industry’s significant role and raised concerns about its logistics challenges. She was speaking at the two-day conference Flower Logistics Africa (FLA) and Perishable Logistics Africa (PLA) 2024 organised by Logistics Update Africa in Nairobi, Kenya on 27 and 28 March 2024.
Jamwa highlighted the Red Sea crisis as a pressing logistical challenge, increasing transit times and freight costs. The situation forced Kenyan exporters to seek alternative routes like the Cape of Good Hope, significantly impacting logistical expenses and supply chain dynamics. “Because of the Red Sea crisis, we are now using the Cape of Good Hope, making our logistical expenses high,” noted Jamwa.
Kenya says it created 139 000 digital jobs in a year (ITWeb Africa)
Over the last year, Kenya says it has created over 139 000 digital jobs for youth as part of an unemployment-reduction programme. The government claims it accomplished this by establishing digital hubs across the country during that time. Since the program’s inception, East Africa’s largest economy claims to have trained thousands of young people in collaboration with its partners.
Eliud Owalo, cabinet secretary for information, communications, and the digital economy, revealed the data yesterday during the unveiling of another digital hub in Nairobi. “This is a game changer. It is transformational,” he said of the government’s digital jobs initiative. “As of today, formal occupations are limited, if not non-existent. Where we have jobs is in the digital sector, so we are collaborating with our honourable Members of Parliament to establish digital hubs in each and every ward in this country,” Owal stated.
Finance Bill 2024 Proposals (The Exchange Africa)
The Kenya Association of Manufacturers (KAM) has raised concerns over the state’s proposal to increase the Import Declaration Fund (IDF) from 2.5 per cent to 3 per cent. In a raft of proposals to the government, the manufacturers highlighted some of the expected impacts of the proposed law on Businesses in the East African nation. KAM argues that the imposition of IDF will significantly elevate the costs of raw materials, thereby stifling the manufacturing sector’s ability to add value.
In a statement on Monday, May 20, 2024, the manufacturers said whereas there are some progressive proposals in the proposed law aimed at promoting manufacturing growth, several others shall hinder this objective, and ultimately impact Kenyans. “The proposal to increase the Import Declaration Fund from 2.5 percent to 3.0 percent will negatively impact the cost of raw materials and intermediate products used for manufacturing value addition,” said KAM CEO Anthony Mwangi.
They say the proposal to impose the Export Investment Promotion Levy (EIPL), under the Miscellaneous Fees and Levies Act, on raw materials used for manufacturing value addition shall be detrimental to the competitiveness of local industries in both local and export markets through the increased cost of production.
Bilateral ties bring benefits as official reaffirms stance on Taiwan question (China Daily)
China-Kenya cooperation has yielded fruitful results over the past decades and Kenya is looking to carry forward bilateral relations as well as supporting the one-China principle for mutual benefit, said a senior Kenyan official. In an interview on Monday in the Kenyan capital Nairobi, Moses Wetang’ula, speaker of the National Assembly of Kenya, said bilateral relations have grown phenomenally since the start of the century, which has boosted growth in Kenya and brought benefits to the people.
“When you look today, China is a signature to almost every major infrastructure project in Kenya, and the people of Kenya appreciate this,” he said. “The relationship between Kenya and China is excellent.
Kenya President Ruto’s regional message in bilateral visit to US (The East African)
Kenya’s President William Ruto on Monday landed in the US in his first-ever State visit to Washington and used this opportunity to deliver a regional message for a bilateral trip. In his first engagement since landing, President Ruto spoke about climate change, financial restructuring and dealing with regional security problems. However, he said the allure of democracy may wane if enthusiasts of freedom of choice continue to wallow in poverty, especially in Africa.
President Ruto was speaking on “Global Democracy Partnership”, an engagement at the Carter Center in Atlanta, named after former US president Jimmy Carter. Ruto had been expected to speak about the growth of democracy in Kenya over the years. But he also used the occasion to speak about the challenges facing the continent.
“Many countries are in economic and debt distress occasioned by climate change and compounded by an unjust international financial architecture and an imperfect multilateralism associated with the free market economy. We now run the escalating risk of democracy and free market being associated with poverty and suffering, lending credence to the widespread lamentation that democracy is or has been on the retreat in many parts of the world, including Africa,” he added.
Digital Transformation: NITDA Extends Digital Technologies To Grassroots (Science Nigeria)
The National Information Technology Development Agency (NITDA) said it is poised to partner with relevant organisations to effectively disseminate the advantages of digital technology to all 774 local governments across the nation. This information was revealed by the director-general of NITDA, Mallam Kashifu Abdullahi during a meeting with the senior special advisers to the president on community engagement (Barr. Chioma Nweze for Southeast, Ms. Moremi Ojudu for Southwest and Hon. Abdallah Yakassai for Northwest), who visited the agency to explore potential areas of collaboration in Nigeria’s digital transformation journey.
Emphasising the agency’s vision for a Nigeria where inclusive economic growth is nurtured through technological innovation, the NITDA DG highlighted that this vision corresponds with the president’s eight priority areas.
“The President aims to reform the economy for sustained economic growth; enhance national security for peace and prosperity; bolster agriculture for food security; improve infrastructure and transportation as growth facilitators; prioritise education, health and social investment for development; expedite diversification through digitisation, industrialisation, creative arts, and innovation; and enhance governance for efficient service delivery to citizens,” he remarked.
Use resources to diversify African economies, unlock sustainable growth (Engineering News)
A majority of African economies, or 83%, are highly commodity-dependent and are vulnerable to external shocks, experiencing good growth when commodity prices are high, but seeing growth reversal and setbacks when prices are low.
Chad, for example, experienced an average of 9% growth in GDP between 2001 and 2014, but since 2015, the GDP of the country has contracted and poverty increased. GDP per capita is decreasing and developmental gains have been reversed because of the inability to sustain economic growth.
The shift from agriculture to oil made the economy less diversified and vulnerable to external shocks, independent policy research initiative African Futures Innovation Programme senior researcher Dr Kouassi Yeboua said during the African Centre for Economic Transformation Summit on Economic Transformation on May 20.
However, Africa should leverage its resources to increase the investment capacity in economies and the resources available for long-term investment. Rather than finance current consumption, resources must be aimed at financing economic transformation going forward, University of Pretoria Department of Economics head Professor Nicola Viegi suggested.
The Sub-Regional Office for West Africa of the United Nations Economic Commission for Africa (SRO-WA/ECA), in collaboration with the Enhanced Integrated Framework - World Trade Organization (EIF-WTO) and the International Islamic Trade Finance Corporation of the Islamic Development Bank group (ITFC-IDB), is organizing from June 4 to 5, in Lomé, Togo, a mutual capitalization workshop on regional experiences in the implementation of the African Continental Free Trade Area (AfCFTA) in West and North Africa.
This meeting will be held in a context where, according to the estimates of the ECA, the effective implementation of the AfCFTA would generate an increase in intra-African trade by 33.8% by 2045, including an increase of 41.1% in trade in the agri-food sector, 39.0% for industry, 16.1% for the mining sector, and 39.2% for services.
According to the ECA, trade gains in the ECOWAS sub-region would be 32% higher than in Africa as a whole, with an increase of 29% for the agri-food sector, 24% for industry, 10.6% for mining, and 39.3% for services.
COMESA to accelerate regional horticulture sector growth (The Exchange Africa)
Agriculture is the backbone of nearly all East Africa region’s economies and the main economic activity for more than 70 per cent of the population. It is estimated to contribute on average 27 per cent of the gross domestic product (GDP) in the EAC and accounts for the highest share of employment not only in the region, but the African. However, the region makes huge post-harvest losses in food products annually in the range of 30 per cent in cereals, 50 per cent in roots and tubers, and up to 70 per cent in fruits and vegetables, according to data by the East African Community.
To help countries curb these losses, the Common Market for Eastern and Southern Africa (COMESA) has unveiled the programme targeting five countries in the region, with a focus in the horticulture sub-sector. The COMESA – East African Community Horticulture Accelerator (CEHA) project targets avocado, onion and Irish potato farming in Kenya, Rwanda, Tanzania, Uganda and Ethiopia, with a keen focus on ensuring continued growth of the sector through increased exports, income employment and food security.
Under the programme, farmers in the five countries are expected to access quality seeds, training on how to improve production and distribution, countries to establish standards and traceability, and strengthen post-harvest management while improving gains in the value chain. The five-year programme is expected to help the countries cut post-harvest losses in horticulture to 40 per cent or lower, from highs of 60 per cent, for instance in Kenya.
The Chairperson of the Southern African Development Community (SADC), His Excellency João Manuel Gonçalves Lourenço, President of the Republic of Angola on 20 May 2024 launched the SADC Regional Humanitarian Appeal of at least US$5.5 billion to support over 61 million people affected by the El Niño induced Drought and Floods.
The Humanitarian Appeal, which was launched during the Extraordinary Virtual Summit of Heads of State and Government, is aimed at augmenting domestic resources of the affected Member States, including efforts for resource mobilisation from national, regional, and international partners in response to the impact of El Niño induced drought and floods.
ECOWAS Parliament to setup mediation committee on Niger, Mali, Burkina Faso (Daily Post Nigeria)
The Parliament of the Economic Community of West African States, ECOWAS, is to constitute an ad-hoc Mediation Committee to work with all stakeholders towards getting Niger, Mali and Burkina Faso to return to the sub-regional body. The First Deputy Speaker of the ECOWAS Parliament and Deputy Senate President, Jibrin Barau, made the disclosure at the opening of the 2024 2nd Extraordinary Session in Kano on Tuesday. He said the decision was in line with the clarion call made by the President of the ECOWAS Commission for Parliament’s urgent intervention in addressing pressing issues in the community.
“The President noted the urgency of joining ongoing efforts aimed at avoiding the disintegration of the regional bloc, which could happen with the departure of Mali, Niger and Burkina Faso.
‘Multilateral Collaboration Key To Digital Infrastructure Growth’ (DailyGuide Network)
Chief Executive of Telecel Ghana, Ing. Patricia Obo-Nai, has called for stronger multilateral partnerships and cooperation between industry, government, and investors to accelerate the growth of digital public infrastructure in Africa. Delivering the keynote remarks on ‘Digital Infrastructure and Innovation: Accelerating Africa’s Development’ at the Mobile Technology for Development (MT4D) session of the 3i Africa Summit, Ing. Obo-Nai outlined a roadmap for leveraging technology to fast-track digital infrastructure, innovation and literacy across the continent.
“My first call on the topic is for cooperation and partnership between governments, industry, domestic direct investors and foreign direct investors to work together on increasing digital public infrastructure if we are serious about it. Let’s not just discuss, let’s implement,” Obo-Nai said.
Ing. Obo-Nai highlighted three key areas that require attention to expedite the integration of technology into public service to benefit every community – infrastructure, innovation, and digital literacy.
Africa’s human, land, mineral resource and cross-border trade endowments combine to make it the world’s most promising investment destination, now and well into the future, African Development Bank Group President Dr Akinwumi Adesina said.
Speaking yesterday at the 50th anniversary celebration of the Arab Bank for Economic Development in Africa (BADEA) in Riyadh, Adesina outlined five reasons why Africa is the world’s investment frontier: The size and youthfulness of the population, the continent’s renewable energy potential, abundant arable land, and the African Continental Free Trade Area (AfCFTA), which he noted is “the single largest free-trade zone in the world in terms of number of countries.”
Adesina further highlighted the resilience of African economies, “despite the challenges posed by climate change, geopolitical tensions, global inflation and rising debt, among others.”
State and Trends of Carbon Pricing 2024 (World Bank)
There are now 75 carbon pricing instruments in operation worldwide. Over half of the collected revenue was used to fund climate and nature-related programs.
“Carbon pricing can be one of the most powerful tools to help countries reduce emissions. That’s why it is good to see these instruments expand to new sectors, become more adaptable and complement other measures,” said Axel van Trotsenburg, World Bank Senior Managing Director. “This report can help expand the knowledge base for policymakers to understand what is working and why both coverage and pricing need to go up for emissions to go down.”
Report findings show large middle-income countries including Brazil, India, Chile, Colombia, and Türkiye are making strides in carbon pricing implementation. While traditional sectors like power and industry continue to dominate, carbon pricing is increasingly being considered in new sectors such as aviation, shipping and waste. The EU’s Carbon Border Adjustment Mechanism, currently in a transitional phase, is also encouraging governments to consider carbon pricing for sectors such iron and steel, aluminum, cement, fertilizers, and electricity.
Tehran, Moscow working to create single currency for BRICS: Iran envoy (Fibre2Fashion)
Iran and Russia are working to create a single currency for the BRICS grouping, with the former actively participating in the activities organised under latter’s chairmanship of BRICS, Iranian ambassador to Russia Kazem Jalali said recently.
“The creation of a new single currency within the framework of the association is what Russia and Iran are working on,” the diplomat told a press conference at the 15th International Economic Forum ‘Russia-Islamic World: KazanForum’ organised in Kazan in southwest Russia recently. Iranian ambassador to Russia Kazem Jalali said that as the United States uses the dollar to ‘create restrictions’, the use of national currencies in mutual settlements is on the agenda.
See also: Sri Lanka Joins List Of Countries Eyeing BRICS Membership This Year (Outlook India)
Trade and Gender Informal Working Group advances work on gender-responsive trade policies (WTO)
The Informal Working Group (IWG) on Trade and Gender met on 17 May to advance discussions on gender-responsive trade policies in line with the 13th Ministerial Conference (MC13) Declaration, which recognized the importance of promoting women’s participation in trade. Members participating in the Group provided updates on their trade and gender initiatives and discussed ways of improving women’s participation in international trade.
Some of the proposals related to the Compendium of Financial Inclusion Initiatives for Female Entrepreneurs, launched at MC13, which aims to help policymakers design gender-responsive trade policies to enhance women entrepreneurs’ financial inclusion. The co-chairs also encouraged members of the IWG to share proposals on developing gender-disaggregated data and statistics, as agreed at the last meeting on 6 March 2024.
Empowering change: Women transforming the world of trade, treasury & payments (Trade Finance Global)
While it is true that the trade, treasury & payments industries have made impressive strides in gender inclusion, moments like these show that we have a long way to go.
Trade finance has traditionally been a male-dominated field, in fact, according to the WEF Global Gender Gap report, it will take 131 years to reach full gender parity. But this narrative is changing, slowly but surely. Women are now leading key initiatives, driving innovation, and bringing diverse perspectives to the table. Their participation is crucial for fostering an inclusive environment that promotes sustainable growth and equitable opportunities.
The digital revolution is a powerful catalyst for gender inclusion in trade. Digital platforms and technologies offer unprecedented opportunities for women to access global markets, secure financing, and enhance their business operations. Initiatives like the Africa Trade Gateway (ATG) by Afreximbank provide women entrepreneurs with access to critical trade information, helping them make informed decisions and expand their businesses.
INTERVIEW: Developing countries risk missing out on net-zero benefits, but fairer future is possible (UN News)
The lead author of the World Economic Situations and Prospects mid-year update, the flagship report from DESA released on 16 May, outlined the main findings in an interview with UN News.
When the war in Ukraine started, we saw a huge spike in commodity prices. Oil prices shot up. Grain prices shot up. But, they have normalised. Similarly, when the Gaza war began last October, we saw some increases in oil prices and some commodity prices but, again, they stabilised. The global market is responding to this crisis more efficiently, and alternative sources are emerging, so we haven’t seen a severe effect on prices from the Gaza war. However, we are seeing other effects; freight prices have gone up because the Red Sea route is restricted. In 2022 in the early months of the Ukraine war, shipping was disrupted, causing a huge spike in grain and other commodity prices.
And when you’re diverted around the Cape of Good Hope, you’re adding another 15 days of travel time, which really adds up a lot of costs. In general, the biggest headwind right now is geopolitical risk, which is why we have adjusted downward the growth forecast for the majority of the countries in Africa.
Can Cybersecurity Be a Unifying Factor in Digital Trade Negotiations? (Dark Reading)
Over the past decade, the digital trade policy community has been consumed by battles over data privacy, cross-border data flows, and e-customs duties, on which forging an international consensus remains elusive. Yet among the geopolitical jostling on these issues, there is at least one critical area where we see steady, tangible progress in digital trade policy: cybersecurity.
In today’s global economy, the increasingly fragmented state of global cyber regulation undermines cybersecurity and the growth potential of digital trade. Trade negotiators should leverage the opportunity to secure more ambitious cybersecurity commitments, advancing a fair, inclusive, sustainable, and secure digital trade environment, even as negotiations on more contentious digital issues remain stalled.
Quick links
High-end cellphone makers cut out accessories to curb e-waste menace (The East African)
Member States call for transformative policies and quality funding, crucial for the UN’s boost for people and planet (UN Sustainable Development Group)
A Closer Look at the Global South (Carnegie Endowment for International Peace)
A Tale of Two Worlds (UNDP)
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Minerals Council, Geoscience, IDC going all out to boost South African exploration (Engineering News)
A collective effort was apparent on Friday when Minerals Council South Africa, the Council for Geoscience and the Industrial Development Corporation (IDC) spoke on the same platform to promote a return to growth in the shrinking South African mining industry.
Minerals Council South Africa CEO Mzila Mthenjane, Council for Geoscience CEO Mosa Mabuza, Junior Exploration & Mining Leadership Forum chairperson Errol Smart, who is also the CEO of Orion Minerals, IDC Junior Mining Fund executive Siyabonga Mahlangu and many others showed common thought and vision on what must be done effectively and transparently as quickly as possible.
Valuable unity of purpose was apparent during the all-embracing webinar, which was facilitated by Minerals Council Junior Mining Desk manager Grant Mitchell and attended online by 120 people.
“As a country, we are certainly going to be one of the key players in the move to transition to a low carbon future and need to extract critical minerals that are going to be necessary for us to be able to move forward and achieve a low-carbon future,” Mthenjane highlighted. “To be able to do that it’s important that we have a very good understanding of the landscape of our minerals across the breadth and depth of the country.
Ruto, Museveni meeting gives glimmer of hope to traders (The East African)
Ugandan and Kenyan traders may have reason to smile after President Yoweri Museveni met his Kenyan counterpart William Ruto this week, with their discussions centred on the removal of the non-tariff barriers that have hindered trade between the two biggest trading partners in the region.
Museveni was in Kenya for a three-day state visit and accompanied by officials, including Agriculture Minister Frank Tumwebaze. The two presidents directed their respective ministers of Trade to convene “as soon as possible” to address the NTBs that continue to stifle Uganda-Kenya trade. Uganda remained Kenya’s biggest trading partner in terms of exports for the period ending October 2023, according to data published by the Kenya Bureau of Statistics (Kebs) in early January.
China back to funding SGR connecting Kenya and Uganda (The East African)
Kenya has secured a commitment from China’s Exim Bank for the funding of the standard gauge railway line from Naivasha to the Uganda border. Kipchumba Murkomen, Kenya’s Cabinet Secretary of Roads and Transport, said that Pan-African lender African Development Bank and Kenya’s own Railway Development Fund would complement the Chinese as Nairobi and Kampala continue to woo more financiers for the cross-border project.
Mr Murkomen spoke to The EastAfrican as President William Ruto hosted his Ugandan counterpart Yoweri Museveni on Thursday at State House, Nairobi, where the two leaders threw their weight behind the joint project, which is meant to go all the way to the Democratic Republic of Congo.
The line will provide the required regional competitive advantage to improve regional connectivity with links to Uganda, South Sudan, Rwanda and DRC. There is pressure on Kenya and Uganda to extend it to the Great Lakes region, especially the resource-rich DRC, as Tanzania pushes on with its electrified line headed in the same direction on the Central Corridor.
Benin and the African Development Bank officially launched the Project to Promote Sustainable Aquaculture and the Competitiveness of Fisheries Value Chains in Cotonou on 15 May 2024, to increase the contribution of fisheries and aquaculture sector to food security and local economies.
“A significant part of the fishing community in Benin has waited a long time, and now the project is underway,” said a delighted Gaston Cossi Doussouhoui, Minister of Agriculture, Livestock Farming and Fisheries. “We have men and women who rely on fishing for their livelihood and had no way of realizing their potential. Moreover, fisheries and aquaculture were seen as the poor relation to the agricultural sector. Our plan is to reverse that by taking advantage of the political will that now exists,” he continued.
Guinea: 2024 Article IV Consultation (IMF)
On December 18, 2023, the explosion of a major fuel import and storage facility led to fuel shortages and new urgent financing needs. The blast caused 25 deaths and 457 injured as well as widespread fuel shortages, affecting transportation and economic activity. The relatively strong mining sector is sustaining growth, although growth is expected to decelerate to 4.1 percent in 2024, lower than the 2019-23 average of 5.1 percent.
AfCFTA Viability Questioned As Dangote Reveals He Needs 35 Visas to Travel Across Africa (Tekedia)
At the Africa CEO Forum Annual Summit, Aliko Dangote, Africa’s richest person, laid bare the significant travel challenges he faces with his Nigerian passport, revealing that he needs up to 35 visas to travel across the continent. His revelation, which does not come as a surprise to many, underscores the formidable barriers to achieving the ambitious goals of the African Continental Free Trade Area (AfCFTA).
Speaking directly to President Paul Kagame of Rwanda, Dangote vented his frustrations about the cumbersome visa processes required for travel across the continent. “I still complained to President Kagame. I told him that as an investor, I have to now apply for 35 different visas on my passport, and I told Mr. President, I really don’t have the time to go and be dropping my passports in embassies to get a visa,” Dangote said.
He highlighted the stark contrast between the ease of movement for Europeans and the restrictive conditions for Africans. Using Patrick Pouyanne, chairman of Total Energies, as an example, Dangote noted, ”You don’t need 35 visas on your French passport. This means you have a freer movement than myself in Africa.”
Spiro Agrees to US$50 Million Debt Facility with Afreximbank to Accelerate Expansion (Afreximbank)
Spiro, the largest electric vehicle company in Africa, is pleased to announce it has signed heads of terms for US$50 million debt facility with the African Export-Import Bank (Afreximbank). This landmark agreement was signed in Kigali, Rwanda during the Africa CEO Forum, highlighting Spiro’s commitment to enhancing sustainable transportation on the continent.
“This partnership with Afreximbank is a pivotal development for Spiro,” stated Kaushik Burman, CEO of Spiro. “The $50 million USD debt facility will significantly enhance our operational capabilities and help us expand our footprint to more African countries. It’s a testament to the confidence in our business model and our contribution to sustainable development in Africa.”
Business diplomacy and Africa’s development (TheCable)
From May 16 to 17, over 2,000 of Africa’s business leaders, investors, policymakers and political leaders as well as their counterparts from around the world met in Kigali, Rwanda under the auspices of the Africa CEO Forum 2024 to discuss the continent’s development, opportunities and challenges. The theme this year was “At the Table or On the Menu? A Critical Moment to Shape a New Future for Africa.” President Paul Kagame and a few African heads of state and government were there.
The Aig-Imoukhuede Foundation said: “African leaders cannot sit back and watch the 4th Industrial Revolution transform the rest of the world while leaving Africa falling further behind. We have to create our own ‘table’ by using technology to unlock the power of our youth, giving Africa a greater voice in the world. It’s today’s leaders who will determine whether or not we grab this opportunity.”
The Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, has said that it has become necessary for Africans to collaborate on how to tackle their challenges. He says that the emerging global geo-political context should compel us Africans to collaborate to find ways of coming out of the challenges the continent is facing
Speaking during the opening ceremony of the 3i Africa Summit in Accra on Monday May 13, he said “The existential economic sovereignty of our continent is precisely why the African Continental Free Trade Area was established so that we can leverage on this market of 1.4 billion people, which by 2050 is projected to be the 8th largest economy in the world with $16.3 trillion 27 years from now but if we don’t deploy these digital technologies, all of us are going to be discussing where we got it wrong.”
Import restrictions in Nigeria, other African markets complicating business operations – IMF (Nairametrics)
The International Monetary Fund (IMF) has stated that the challenge of import restrictions in Nigeria and other African countries complicates business operations. The Fund stated this in its Regional Economic Outlook for Sub-Saharan Africa entitled, “A Tepid and Pricey Recovery,” where it explained that the twin challenges of import restrictions and foreign currency shortages could mar the post-pandemic recovery in terms of profitability of companies across the region.
It stated, “Moreover, several countries are facing challenges like foreign currency shortages or import restrictions (for example, Angola, Chad, Ethiopia, Kenya, and Nigeria) which have complicated business operations. This comes at a time when companies in the region have just turned a leaf and returned to pre-pandemic profitability.”
Senior Trade Officials from ECOWAS Member States gathered in Abuja, Nigeria, from 15th to 16th May 2024 to consider regional instruments towards enhancing regional economic integration and trade. The overall objective of the 2-day meeting was to review, validate, and recommend regional trade policy instruments to the Ministers of Trade and Industry. In addition, the Meeting also considered the region’s participation at and the outcome of the 13th World Trade Organisation (WTO) Ministerial Conference (MC13).
In his opening remarks on behalf of Madame Massandjé TOURE-LITSE, Commissioner for Economic Affairs and Agriculture, Mr. Kolawole Sofola, the Director of Trade for ECOWAS, reaffirmed the Commission’s dedication to strengthening economic integration and tackling current trade issues. “Our concerted efforts today are geared towards ensuring our trade policies respond to the changing realities, and promote prosperity in our region,” said Mr. Sofola. He urged Member States to build on various regional, continental and multilateral Decisions and Instruments, including the ECOWAS Trade Liberalisation Scheme, the African Continental Free Trade Area, as well as the outcome of the 13th WTO Ministerial Conference.
The Directorate of Agriculture and Rural Development of the Economic Community of West African States (ECOWAS), the national and regional stakeholders of the agriculture sector, the African Union, and representatives of the sector’s six stakeholder groups convened to officially launch the fourth Biennial Review on agricultural growth and transformation and to start the conversation on the next ten years for the ECOWAS Agriculture Policy (ECOWAP) and Post Malabo Agenda. The event, which incorporated online and offline participation with a total of 98 participants, was held on the 16th and 17th of May 2024. It featured distinguished facilitators, experts, and ECOWAS officials in a detailed agenda to promote in-depth analysis, discussion, and action planning.
Niger, Mali, Burkina Faso Ignore ECOWAS Peace Offer, Form New Confederation (Gistmania)
In a significant geopolitical shift, ECOWAS has lifted sanctions on Niger, Mali, and Burkina Faso, aiming to reconcile the three nations with the regional bloc after their announced withdrawal. This development comes as the trio finalizes plans to form a confederation, marking a notable transformation within the Economic Community of West African States (ECOWAS) region.
The new alliance, named the Confederation of the Alliance of Sahel States (AES), signals a departure from their colonial ties with France and a pivot towards closer relations with Russia. The announcement was made following a meeting of the foreign ministers of the three nations in Niamey, the capital of Niger, on Friday, May 17, 2024.
Niger’s Foreign Minister, Bakary Sangare, confirmed the completion of a draft text outlining the institutional and operational framework of the AES. “The objective was to finalize the draft text relating to the institutionalization and operationalization of the Confederation of the Alliance of Sahel States,” Sangare stated.
Experts laud progress on impending Abidjan-Lagos highway project (GhanaWeb)
The Economic Community of West African States (ECOWAS) Commission, in collaboration with the African Development Bank (AfDB), has organized a Stakeholder Consultation and Validation Workshop for the Spatial Development Initiative (SDI) study of the Interim Report for the Abidjan-Lagos Corridor from May 14 to 16, 2024, in Accra, Ghana.
The experts deliberated on the results of the SDI study, including a comprehensive roadmap for the development of the Abidjan-Lagos corridor, considering economic, social, environmental, and logistical factors, that will enable them to obtain funding and support from international organizations, governments, and private investors.
Mr. Sediko DOUKA, ECOWAS Commissioner for Infrastructure, Energy, and Digitalization, represented by Mr. Chris APPIAH, Acting ECOWAS Director of Transport, at the opening of the all-important workshop, emphasized that the Abidjan-Lagos Corridor Highway Project was being implemented not just as a road project but as an integrated “Economic development corridor” which will also catalyze the deployment of other important sectors such as Trade, Industry, Agriculture, Energy, Environment, ICT, and Tourism.
AU eyes increased investments, trade between Africa, Arab nations (Nairametrics)
The African Union (AU) has called on Arab countries to revitalize their investment and trade commitments across the African continent. This appeal aligns with the Nigerian government’s ongoing efforts to attract foreign investments from the United Arab Emirates (UAE) and Saudi Arabia. The Chairperson of the African Union Commission, Mr. Moussa Faki, made this call during the 33rd session of the Arab Summit in Bahrain, which concluded on May 16, 2024.
In his address, Mr. Faki highlighted the significant role that Arab countries can play in advancing joint Arab-African initiatives and realizing the mutual priorities and ambitions of both regions. He emphasized the historical context of the Africa-Arab partnership, which was first ratified in 1977 to serve as a framework for economic collaboration between the two regions. Currently, nine African states, including Egypt and Morocco, are part of the Arab League. Mr. Faki’s call for increased Arab investment comes at a time when Africa is seeking more economic opportunities to boost its development.
Report on Africa’s digital economy, China-Africa cooperation released in Kenya (PR Newswire)
A report on Africa’s digital economic development index and China-Africa cooperation on the digital economy is released in Nairobi, Kenya, on May 10, 2024. [Photo provided to China.org.cn] Jointly published by the China-Africa Economic & Trade Research Institute and Datasparkle, the report provides observations and analyses of Africa’s digital economy evolution and explores avenues for collaboration between China and Africa in the digital realm.
Xiao Hao, acting secretary-general of the China-Africa Economic & Trade Research Institute and deputy dean of the School of Economics and Trade of Hunan University, spoke on Africa’s rapid digital progression at the release of the report. Xiao said that, due to various factors like geography, society, and culture, significant disparities exist in digital technology adoption and accessibility across different African regions and demographics, leading to a noticeable digital divide.
China’s approach to digital economic growth, characterized by priority on infrastructure, continuous innovative applications, and technological innovation-driven development, offers valuable insights for other nations or regions seeking digital transformation, he said.
AGOA extension top agenda in Ruto US trip (The Star)
President William Ruto will seek to save the Agoa deal set to expire in June next year as he starts a four-day state visit in the US. The African Growth and Opportunity Act is a law enacted by US Congress in May 2000 to assist the economies of Sub-Saharan Africa, including Kenya. The deal waived restrictions and tariffs, allowing goods from African countries special access to the US market.
Foreign Affairs Principal Secretary Korir Sing’oei and State House Spokesperson Hussein Mohamed said Ruto will meet top congressional leaders on Wednesday. During the meeting, he will make a case on why the law should be enhanced and extended.
A handbook by the Ministry of Trade says Kenya is among the first Sub-Saharan countries to qualify for trade preferences under Agoa. Some of the benefits include, duty-free treatment for apparels made in Kenya, permission to use third-country fabric under the special rule for apparel and the ability to cumulate product value across Agoa-eligible countries. Sing’oei said, the President will leverage on the strategic trade and investment partnership framework to push a case for preferential treatment of Kenya in the Agoa deal. The framework is still under negotiation between the two countries.
Related: US still allows compliant SMEs to export non-oil products under AGOA -Williams, NACC President (The Sun Nigeria)
Sub-Saharan Africa is a hotbed of illicit trade, UN says (The East African)
In the shadowy realm of wildlife trafficking, Sub-Saharan Africa emerges as a hotbed for illicit trade routes and clandestine operations fueling the multi-billion-dollar industry.
Recent data contained in the World Wildlife Crime Report 2024 reveals this region accounts for a staggering 19 percent share of seizures of wildlife materials worldwide, underscoring its status as one of the most common sources of trafficked wildlife. Between 2015 and 2021, the flow of illegal wildlife trade surged from sub-Saharan Africa and South Asia, constituting 44 percent of all recorded seizures.
Related: How EU-type track-and-trace system could eliminate East Africa illicit trade (The East African)
Africa Realises Notable Progress in Strengthening Disaster Risk Reduction (AU)
Progress continues to be realised in Africa towards accelerating the implementation of the Programme of Action for the Implementation of the Sendai Framework for Disaster Risk Reduction 2015-2030. This outcome emerged at the 21st session of the Africa Working Group on Disaster Risk Reduction (AWGDRR).
The three-day event was held in Kigali, Rwanda, from 16 to 18 April 2024. It was themed “From Commitment to Action - Path to Accelerate the Programme of Action for the Implementation of the Sendai Framework in Africa.”
Amjad Abbashar, Chief of the United Nations Office for Disaster Risk Reduction (UNDRR) Regional Office for Africa, noted, “Climate change risks are becoming increasingly complicated and difficult to manage. They are characterised by compounded and cascading risks that cut across several sectors.”
El Nino-hit Southern Africa launches $5.5BN humanitarian appeal (Mmegi Online)
In a communique issued after eight Southern African Development Community heads of state met virtually, the regional organisation noted that El Nino had caused drought and floods across Southern Africa affecting 61 million people. The last time SADC appealed for humanitarian assistance following El Nino was in 2016, through a $2.7 billion (P29.6bn at 2016 rates) request.
At a virtual heads of state Summit attended by President Mokgweetsi Masisi and chaired by Angolan president, João Manuel Gonçalves Lourenço, the SADC leaders said the US$5.5 billion was aimed at augmenting domestic resources of the affected member states. This includes efforts for resource mobilisation from national, regional, and international partners in response to the impacts of El Niño induced drought and floods.
“Summit noted the multifaceted and cascading impact of the El Niño induced drought and floods across multiple sectors, including Agriculture and Livelihood Security, Food Security, Nutrition, Health, Water and Energy, and called for coordinated, integrated, and harmonised interventions to address the adverse impact of El Niño,” the communique reads.
ECA and partners discuss new strategies for sustainable development in Africa (UNECA)
The United Nations Economic Commission for Africa (ECA) successfully convened its 2nd Partners Meeting in Addis Ababa, Ethiopia. The event brought together over 45 global partners to discuss the implementation of ECA’s multi-year integrated programs aimed at fostering robust partnerships and mobilizing essential resources. The meeting addressed significant challenges highlighted at the 56th Conference of African Ministers of Finance, Economy and Development Planning and the 10th Africa Regional Forum for Sustainable Development.
ECA’s Executive Secretary, Claver Gatete outlined ECA’s strategic focus on developing regional value chains, particularly in agro-processing and minerals, aiming to transform the African continent into a significant investment destination. This initiative supports the broader goals of the African Continental Free Trade Area (AfCFTA) by “shifting from potential to actualized economic powerhouses.”
Global economic growth improves but ‘downsides’ lurk (UN News)
The global economic picture has improved since January, but vulnerabilities remain, the mid-year update of the World Economic Situation and Prospects report published on Thursday has revealed. The world economy is forecast to grow by 2.7 per cent in 2024, up from 2.4 per cent projected at the start of the year. Growth will reach 2.8 per cent in 2025, representing a slight increase. These changes are mainly due to better-than-expected performance in some large developed and emerging countries, notably Brazil, India, Russia and the United States.
In the case of Africa and LDCs in general, prospects are revised downward to about 3.3 per cent growth in 2024. “This is particularly worrying because Africa is home to about 430 million living in extreme poverty and close to 40 per cent share of the global undernourished population,” Shantanu Mukherjee of the UN Department of Economic and Social Affairs (DESA) explained. Furthermore, two-thirds of the high inflation countries listed in the report are on the continent.
Growth of digital economy outperforms overall growth across OECD (OECD)
The information and communication technology (ICT) sector grew by an average of 6.3% between 2013 and 2023, about three times faster than the total economy across the 27 OECD countries analysed.
The first volume of the OECD Digital Economy Outlook 2024 released today also shows the ICT sector maintained this strong performance during 2023 with an average growth rate of 7.6%. In many OECD countries, 2023 was a record year for ICT sector growth, with five OECD countries (the United Kingdom, Belgium, Germany, Austria, and the Netherlands) achieving growth rates above 10% in 2023. While all OECD countries showed positive ICT sector growth on average over the 10-year period, a 10 percentage-point gap exists between the highest and lowest performers.
Crimes against nature: UN agency puts environmental legislation under scrutiny (UN News)
“Stronger legislation can help deter potential and repeat offenders and expand the range of investigative tools and resources for law enforcement to stop crimes that affect the environment,” said Angela Me, Chief of Research and Analysis at the UN Office on Drugs and Crime (UNODC), presenting the report. Launched in Vienna, ‘The Landscape of Criminalization’ is Part One of the first-ever Global Analysis of Crimes that Affect the Environment report.
Wildlife and waste are the areas where most countries (164 and 160, respectively) include at least one related criminal offense in their national legislation. In contrast, soil and noise pollution (99 and 97, respectively) are the areas where the fewest countries have criminal provisions.
Quick links
Investment opportunities in South Sudan’s emerging gold industry (The Exchange)
African food systems are better understood as food baskets not value chains (The Zimbabwe Independent)
Fair Trade Reimagined: Beyond Ethical Sourcing To Local Value Addition In Africa (Africa.com)
Are pandemic treaty negotiations dividing the Africa group? (Devex)
Data new oil of the digital economy (China Daily)
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Kenya, Uganda to extend oil pipeline from Eldoret to Kampala (The East African)
Kenya and Uganda have agreed to jointly extend the oil pipeline from Eldoret to Uganda in a deal that will see Kampala import refined petroleum products directly through Nairobi. Nairobi says the extension will facilitate trade relations between the two nations. The two countries also signed a tripartite agreement paving the way for the Uganda National Oil Company (Unoc) to import petroleum products through the port of Mombasa.
“The agreement on the importation and transit of refined petroleum products through Kenya to Uganda whose signing we’ve just witnessed enables Uganda National Oil Company Limited to import refined petroleum products directly from producers in different jurisdictions thus bringing to an end the challenges faced by Uganda,” President William Ruto said, adding that the move serves to bring to an end to the myriad of challenges faced by the sector in Uganda.
Kenya to gain from COMESA post-harvest loss plan (The Star)
Kenya is among five countries in the region that have the backing of the Common Market for Eastern and Southern Africa (COMESA) to cut post-harvest losses in the horticulture sector. This is under the COMESA- EAC Horticultural Accelerator (CEHA) programme targets to improve production and distribution, access to quality seeds, training, establish standards and traceability, and strengthen post-harvest management while improving gains in the value chain.
While overall post-harvest losses in Kenya’s agriculture sector are estimated at between 20 per cent and 30 per cent, the horticulture sub-sector records losses of up to 60 per cent, according to the regional body. The five-year programme targeted at Kenya, Uganda, Tanzania, Rwanda and Ethiopia is keen to cut the losses in horticulture to 40 per cent, or lower.
Tanzania, Uganda organize business forum to boost trade, investment (Tanzania Daily News)
The Uganda-Tanzania Business Forum 2024 is expected to uplift the trade volume and investment between the two countries. The forum will be held in the country’s business capital of Dar es Salam on May 23 and 24 this year in efforts to stimulate investment in manufacturing, logistics, trade, agribusiness, tourism, financial services and extractive sectors including oil and gases as currently the trade volume between Tanzania and Uganda stands at 400 million US dollars (about 1.04tri/-)
Speaking at the press conference on Monday in the country’s business capital of Dar es Salaam, TIC’s Executive Director, Mr Gilead Teri said the forum underscores the six phase government’s broad vision of attracting investments which in return can create jobs, stimulate trade, foster transfer of technologies and spur economic growth at large.
“The platform will provide an opportunity for investors from Tanzania and Uganda to meet, discuss investment opportunities, exchange information as well as develop joint strategies on how to invest together,” Mr Teri said. Furthermore, he noted that the business forum will enable investors to familiarize with investment environment available in both countries and forge collaboration in the spirit of the East African Community (EAC).
Lapsset special economic zone plan off starting blocks (The East African)
The Lamu Port-South Sudan-Ethiopia (Lapsset) Corridor Development Authority has rolled out plans to establish a special economic zone (SEZ) with the search for a consultant to draw a masterplan for land use. The agency says in a request for proposal (RFP) that the special zone seeks to attract firms dealing in food and beverage, textiles, leather, automotive, warehousing and logistics.
“The key objectives of the master plan preparation for the SEZ include but are not limited to … creating a basis on which future physical and land use development plans within the SEZ will be prepared,” the agency said in the RFP.
The port and the upcoming SEZ are part of the Lamu Port South Sudan Ethiopia Transport (Lapsset) project which is an ambitious infrastructure development designed to link Kenya and other regional economies. The project consists of seven key projects starting with a new 32-berth, interregional highways, a crude oil pipeline and product oil pipeline.
Zambia, DR Congo sign deal to enhance border crossing, trade (The East African)
The Democratic Republic of Congo (DRC) and Zambia on Thursday signed a cooperation agreement to facilitate cross-border trade under the regional bloc Southern African Development Community (SADC). Ministers from the two countries discussed a draft collaboration framework and action plan that has been developed with the aim of finding long-term solutions to challenges facing transporters.
“The incessant calls from transporters in the SADC network about the difficulties they encounter daily in carrying out their activities have reached our ears,” said Kazadi. “DRC is concerned about this situation, which is hampering the smooth flow of trade between our two countries. We have agreed to work together with Zambia and find a lasting solution to this situation,” he added.
Manufacturers say tax burden threatening participation in AfCFTA (Businessday Nigeria)
The Manufacturers Association of Nigeria (MAN) has decried the impact of multiple taxation on the operations of manufacturers across Nigeria, and its participation in the African Continental Free Trade Area (AfCFTA) agreement.
According to Ajayi-Kadir, the increased taxation for Internally Generated Revenue has led to heavier tax burdens than anticipated, impacting manufacturers’ profitability and competitiveness. He explained that the taxes from federal, state, and local levels impacts manufacturing, exacerbating challenges and hindering development and competitiveness of the sector.
More news on Nigeria:
Indigenous shippers eye N11trn annual coastal trade (Daily Trust)
Nigeria’s power sector to benefit ‘significantly’ from AfDB’s $1bn fund, Bank says (ICIR)
Economic Update 2024: challenges and opportunities for economic growth in Guinea-Bissau (World Bank)
In Guinea-Bissau, economic growth and development are still constrained by structural challenges that prevent the country from reaching its full potential. The economy remains highly dependent on the export of raw cashew nuts. These make up around 90% of export value and provide income to around 80% of the population, mainly smallholder farmers. This dependency makes Guinea-Bissau susceptible to external shocks, including highly volatile international prices, and adverse climatic conditions, such as irregular rainfall or floods. In 2023, another difficult cashew campaign limited the translation of high production into economic growth.
The Economic Update 2024 shows that the public sector pension schemes face challenges with very high fiscal consequences for the country. Pension payments are made using the general budget which exacerbates already high budget rigidity and adds additional challenges to the fiscal consolidation objectives of the government.
Djibouti Digital Economy: Opportunities and Challenges for Growth and Development (World Bank)
The World Bank has released today a comprehensive report on the state of the digital economy in Djibouti. The report, titled “Djibouti Digital Economy Diagnostic” looks at challenges and opportunities in the country’s digital landscape, the importance of digital infrastructure development, the need for improving broadband access and affordability, and the digital skills required for socio-economic development.
“Djibouti has made significant progress in its digital infrastructure, but there is still room for improvement in terms of affordability, quality and access to digital services,” said Fatou Fall, World Bank Resident Representative in Djibouti. “Despite being one of the smallest countries in Africa in terms of size and population, Djibouti plays a crucial role in providing high-speed internet access to neighboring countries.”
Joining WTO Key Component of Ethiopia’s Economic Reform Agenda: Amb. Mesganu (ENA)
Joining the World Trade Organization (WTO) is a key component of Ethiopia’s Economic Reform Agenda, State Minister of Foreign Affairs Ambassador Mesganu Arga said. The State Minister highlighted that Ethiopia has passed significant policy amendments and radical decisions in relation to trade and finance sectors that will assist advance the joining process. He further mentioned Ethiopia, being a major economic player in Sub-Saharan Africa, would significantly enhance the World Trade Organization’s stature by becoming a member.
Ethiopia Stresses Need For Policy Shifting, Promoting Infrastructure Dev’t In Africa Aviation Sector (FBC)
The Ethiopian government has been seeking to facilitate policy changes for a better infrastructure development and enhanced training capacities as well as human resource development in the African aviation sector, said Minister of Transport and Logistics, Alemu Sime.
The 12th Aviation Stakeholders Convention and Africa’s 1st Safety and Operations Summit is convening in Addis Ababa. In his opening remarks today, the minister said the Ethiopian government realizes the great economic value of air transport as a catalyst for driving the country’s economy forward.
Ethiopian Airlines Group, in particular, is considered as a vital institute that bears a profound responsibility in facilitating the seamless movement of people and goods.
Reforms, stable economies fuelling fintech boom (The Business & Financial Times)
Significant reforms in the formal sector over the past three decades have led to economic stability and predictable growth rates across African nations, particularly in Ghana, Vice President Dr. Muhammadu Bawumia has said. This stable economic environment has created a fertile ground for financial technology (Fintech) growth, which the Vice President believes must be strategically built upon to propel the continent’s economic transformation.
Speaking at the 3i Africa Summit in Accra, Dr. Bawumia stressed the transformative impact of these reforms. “African nations have undertaken significant reforms in the formal sector and achieved remarkable strides in macroeconomic management,” he said, highlighting the stability these efforts have fostered, paving the way for Fintech innovation.
Benin gives green light for Niger’s oil exports to China (DW)
Benin’s concession was a decisive step toward resolving a trade conflict between the West African neighbors that threatened to cause significant economic damage to both countries. The rapprochement came through the mediation of the Chinese government and the Chinese companies operating the newly inaugurated pipeline between Agadem, in eastern Niger, and Seme Kpodji, in southern Benin. In recent months, the closure of the Niger-Benin border has primarily affected Benin’s state revenues and increased food costs, which led to protests over the high cost of living.
A new IFC report reveals significant opportunities for digital transformation across Africa, with more than 600,000 formal businesses and 40 million microbusinesses standing to benefit. The study underscores the pivotal role digitalization can play in enhancing productivity, increasing wages, and creating better quality jobs.
Digital Opportunities in African Businesses shows that despite 86% of African firms having access to digital tools like mobile phones and the internet, only a small fraction leverage these technologies to their fullest potential.
“The startup ecosystem in Africa is one of the fastest growing in the world,” said Makhtar Diop, IFC Managing Director. “This groundbreaking report, backed by innovative firm-level data, clearly demonstrates the significant market potential for investors in digital technology startups and infrastructure. These investments could drive technology adoption in local businesses, boosting productivity, competitiveness, and inclusive growth – vital for a thriving economy.”
Development finance agency highlights Africa’s infrastructure needs and opportunities (Engineering News)
The Africa Finance Corporation (AFC), which exists to catalyse private-sector investment in African infrastructure, on Friday released its latest report, ‘State of Africa’s Infrastructure Report 2024: The infrastructure imperative: Igniting Africa’s Industrial Renaissance’. This found that the continent had an “unprecedented opportunity” to impel its development by bringing its substantial renewable energy resources, and solutions for its deficient infrastructure, into alignment.
The report highlighted that infrastructure development across the continent had failed to keep pace with the increasing needs of its growing population. African countries were still dependent on “pit-to-port” models, which were outdated and hampering economic growth. But the global transition to green energy, plus global supply chain shifts, were creating the opportunity for Africa to recast its role in the global economy by taking advantage of its youthful population and rich natural resources.
When African Development Bank Group member states meet from 27 to 31 May in Nairobi, Kenya for the 2024 Annual Meetings, the question of African debt will be one of the key discussion points. The event’s theme is: “Africa’s Transformation, the African Development Bank Group and the Reform of the Global Financial Architecture”.
The Bank Group estimates that Africa’s total external debt, which stood at $1.12 billion in 2022, had risen to $1.152 billion by end-2023. With global interest rates at their highest level for 40 years and as multiple bond debt securities issued by African countries reach maturity, there is no shortage of challenges in 2024. Africa will pay out $163 billion just to service debts in 2024, up sharply from $61 billion in 2010.
The growing burden of debt repayments has the potential to threaten achievement of the Sustainable Development Goals on the continent, particularly in health, education and infrastructure.
The Ministers responsible for Agriculture, Energy, Water and Disaster Risk Management from the Southern African Development Community (SADC) met virtually on 14 May 2024 to discuss sectoral impacts of El Niño induced drought and floods ahead of the Extraordinary Summit of Heads of State and Government.
His Excellency General Laborinho expressed concern over the sectoral impact of El Niño, particularly highlighting the El Niño climate condition has led to water scarcity thereby triggering food insecurity in the SADC region whose economy is largely agriculture based. He called for solidarity and coordinated efforts, involving all relevant sectors, to tackle the impacts of El Niño induced drought and floods.
The Executive Secretary of SADC, His Excellency Mr. Elias M. Magosi highlighted that the impacts of the El Niño are interconnected and continue to manifest across multiple sectors. He cited as example that, as a result of the low water levels, some Member States have already embarked on long hours of electricity load shedding, thereby negatively impacting the socio-economic fabric and productivity of the SADC region.
IDC in US$500m strategic shift to bolster Sadc push (The Zimbabwe Independent)
The State-run Industrial Development Corporation (IDC) is pressing ahead with a plan to decommission its phosphate production facility at Dorowa, in a fresh move that will end with the establishment of a single manufacturing operation. Under the plan, which general manager Edward Tome said would require US$500 million, IDC plans to push products like phosphate and fertiliser into southern Africa — a region in which economically-troubled Zimbabwe still has a big role to play.
“We are going to have an all in one plant in Dorowa,” he told the Zimbabwe Independent. “It will produce everything from phosphates and other products. It will also be targeting the regional market. “The project is estimated to cost around US$500 million. Remember Zimbabwe was recognised (in Sadc) as the one that will push the fertiliser value chain.
East Africa turns to tech to curb $6 billion illicit trade (The Citizen)
East Africa is expected to adopt a track-and-trace system to streamline cross-border trade and help stem nearly $6 billion in annual losses resulting from illicit trade. The plan, which was announced in Dar es Salaam on Wednesday by the East African Business Council (EABC), will also help to improve health and boost collection of government revenue across the region. EABC executive director John Bosco Kalisa revealed the plan during a regional workshop for stakeholders.
Mr Kalisa said Wednesday’s discussions centred on a framework that will be used to create and operate the system. “We plan to start as soon as possible. Digital tax stamps and electronic cargo tracking systems are among digital technologies governments have rolled out with a view to tracking trade within the East African Community region. However, these technologies are more focused on authentication and tax verification solutions rather than tracking and tracing,” he added.
ECOWAS inaugurates drilling project in Kaduna (The Guardian Nigeria)
Worried by the lack of access to clean water, the Economic Community of West African States (ECOWAS) has inaugurated a new drilling project, which aims to transform the lives of Luumo Kosam Dairy Cooperative in Chukun, Kaduna State.
This initiative aims to provide employment opportunities for youth through improved dairy and fodder production, specifically by enhancing local milk production through the establishment of family dairy farms and the management of cows and calves, increasing the availability and accessibility of feed and forage, and facilitating knowledge sharing among dairy farmers and stakeholders.
ECOWAS collaborates with Member States towards a harmonized regional tourism sector (ECOWAS)
The ECOWAS Directorate of Private Sector has convened experts and stakeholders from both the private and government sectors of the tourism industry for a five-day meeting in Abuja, Nigeria. The focus of the meeting is on the monitoring and evaluation mechanisms for ECOTOUR 19-29 and the ECOWAS Tourism Accommodation Regulator, aiming to optimize resource utilization and enhance operational efficiency.
Mr. Folorunsho Coker, the Director General of the National Tourism Agency of Nigeria, called for the localization of policies taking into consideration the ethnic, cultural and religious diversity of the region, which are very crucial to the successful growth of regional tourism and solidify West African cultural heritage.
Mr. Coker also urged both state and non-state actors work together to harmonize tourism regulations to provide guidelines for all activities in the sector. He emphasized the importance of introducing technology in tourism and training operators to compete globally. “We must embrace technology, or it will leave us behind,” he said.
Climate Change in the WAEMU: Trends, Macro-criticality and Options Going Forward (IMF)
This paper focuses on the trends in climate change in the WAEMU, assesses the criticality of climate change for the region, and reviews the related policy and financing options going forward. Climate change has been increasingly affecting the lives and livelihoods in the WAEMU. Temperatures have risen significantly, and climate-related disasters have hit the region more frequently in recent decades. Climate change can exacerbate the current challenges and hinder long-term economic prospects by threatening economic growth, food security, fiscal and external sustainability, and social outcomes in the region. Macroeconomic policies, structural reforms and cooperation among different parties remain critical alongside regional efforts, in particular to have access to necessary financing and bolster adaptation efforts.
African Ministers of Health, Finance and Trade, experts and development partners have adopted an approach towards the transitioning of the AfCFTA-anchored Pharmaceutical Initiative (Pharma Initiative) into the start-up Phase of the African Pooled Procurement Mechanism (APPM) ensuring continuity and keeping the momentum in advancing healthcare access, kick starting industrialization, and ensuring economic and health security on the continent.
AUDA-NEPAD, the ministers said, will accelerate the operationalization of the African Medicines Agency (AMA) to enhance access to quality, safe, and affordable medical products across the continent.
Stephen Karingi, Director, Regional Integration and Trade Division at ECA said APPM will provide a collaborating framework of common regulatory and quality standards to ensure that pharmaceutical drugs and products are effective, affordable, and safe.
“Linking this health initiative to AfCFTA and AMA presents great opportunities with a potential to change lives, reduce poverty, and contribute to inclusive and sustainable economic development for the continent,” said Mr. Karingi. He noted that implementation of the Pharma Initiative is geared towards fostering inclusive and sustainable socioeconomic development through a single market of approximately 1.4 billion African people who continually face disproportionate impacts of diseases and high costs of importation of critical life-saving health products.
AeTrade Group To Generate 80-125 M Jobs By 2037 (KT Press)
Hailemariam Desalegn, the chairman of Africa Electronic Trade Group (AeTrade Group), has indicated that the organisation has a daring target of generating 80 to 125 million jobs in Africa by 2037, with a commitment to get rid of penury on the continent. “We have a plan of the overall target of 80 to 125 million jobs by 2037 that contribute to the eradication of extreme poverty in Africa. This is a bold and ambitious target, which we cannot achieve on our own, hence we invite all our friends from Rwanda, Africa, and the rest of the world to come and bless this initiative,” Desalegn points out.
He was addressing the inauguration of the AeTrade Group’s continental headquarters, which was launched in Masoro’s Kigali Special Economic Zone on Wednesday, 15 May. The ceremony convened several dignitaries from in and out of Rwanda.
See: Remarks by Antonio Pedro at the Inauguration of the AeTrade Group Continental Headquarters (UNECA)
Pressure eased in 2023 on the market for minerals that go into electric vehicles, wind turbines, solar panels and other clean energy technologies, as supply outpaced surging demand. But a new report from the International Energy Agency finds that major additional investments are still needed to meet the world’s energy and climate objectives.
The Global Critical Minerals Outlook 2024, published today, updates the IEA’s inaugural review of the market last year while also offering new medium- and long-term outlooks for the supply and demand of important energy transition minerals, such as lithium, copper, nickel, cobalt, graphite and rare earth elements.
Related: Critical minerals an opportunity for Zim to increase trade with China (New Zimbabwe)
UN Trade and Development chief to visit Panama Canal ahead of first Global Supply Chain Forum (UNCTAD)
During the visit set for 18 and 19 May, UN Trade and Development (UNCTAD) Secretary-General Rebeca Grynspan will see first-hand the increasing impacts of climate change on the Panama Canal. This exacerbates existing geopolitical challenges that are straining global trade and supply chains. Notably, these include ongoing disruptions in the Black Sea linked to the war in Ukraine, and recent attacks on commercial ships in the Red Sea.
The Panama Canal is a critical global trade route linking the Atlantic and Pacific oceans and confronting low water levels, due to below-normal rainfall driven by the climate phenomenon “El Niño”. Earlier analysis by UN Trade and Development estimated that total transits through the canal plummeted by 49% in January and 42% by April 2024, compared to the peak in December 2021.
The secretary-general’s visit comes ahead of the first-ever Global Supply Chain Forum, to be staged by UN Trade and Development and the Government of Barbados in Bridgetown from 21 to 24 May. Resilience and sustainability top the forum’s agenda, against the backdrop of geopolitical and climate-related challenges increasingly shifting trade patterns and reconfiguring supply chains. It seeks to tackle the unique challenges facing small island developing states and landlocked developing countries. Far from the main lines of trade, these economies are particularly vulnerable to supply chain disruptions.
Development Committee: The Managing Director’s Written Statement April 2024 (IMF)
The global economy has been resilient and appears headed for a soft landing. Inflation continues to recede and risks have become more balanced globally. Nonetheless, medium-term growth prospects remain at the lowest level in decades and a smooth completion of the disinflation process should not be taken for granted. While the outlook for low-income developing countries (LIDCs) is improving, risks are tilted to the downside. The pace of convergence toward higher living standards has slowed, making it increasingly challenging to achieve the Sustainable Development Goals (SDGs).
Fostering faster productivity growth and facilitating the green transition are keys to improving long-term growth prospects. Multilateral cooperation is key to enhancing the resilience of the global economy in a more shock-prone world.
Members discuss proposals to reinvigorate technology transfer discussions (WTO)
The Working Group on Trade and Transfer of Technology discussed on 15 May members’ proposals on future topics for discussion and brainstormed on how to inject new energy into finding ways to increase flows of technology to developing economies.
Members discussed two proposals, by India and the African Group, on themes the Working Group could prioritize for discussion, with a view to increasing flows of technology to developing economies. Members supported WIPO’s request for observer status given the mandate in the Abu Dhabi Ministerial Declaration for the Working Group to continue working with other relevant international organizations and in view of the areas of common interest between WIPO and the Working Group.
‘As the world changes, so do we’: UN Trade and Development deputy chief (UNCTAD)
Speaking at a high-level event on 14 May in the Indonesian city of Bandung, UN Trade and Development (UNCTAD) Deputy Secretary-General Pedro Manuel Moreno renewed calls for collective efforts to fulfill the promise of globalization that leaves no one behind. In Indonesia, Deputy Secretary-General Pedro Manuel Moreno shares reflections on the global economy and the road to a better future – not for some, but for all.
Quick links
Mining-focused manufacturers see innovation as key to survival and future growth (Engineering News)
AU must boost Africa’s global role via G20 membership (Daily Maverick)
BRICS-members are not coordinating their West-Africa strategies (D+C)
Logistics Trade Bodies Urge Action on New EU Import Rules (Global Trade Magazine)
Measuring trade in hemp products: Why it matters and what needs to change (UNCTAD)
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dtic seeks to create a competitive medical technology industry with new master plan (Engineering News)
Trade, Industry and Competition Minister Ebrahim Patel has launched the Medical Technology (MedTech) Master Plan, which is aimed at creating a proficient and competitive medical technology industry over the next three years that will supply domestic and international markets.
“The medical technologies sector offers a unique and significant opportunity for growth in South Africa. The sector has emerged as an increasingly innovative sector, developing technologies that can service both our local market and abroad.
“With the modalities for the African Continental Free Trade Area (AfCFTA) agreed, the African market provides a significant opportunity for growth in the sector. The African continent is currently a significant importer of medical technologies, with much of this demand within the scope of South African producers,” the Minister commented at a launch event on May 13.
Kenya eyes ripening avocado market in China (Capital News)
Kenya’s avocado sector is seeking improved cooperation with China in food safety to expand exports to the lucrative market. Kenya is one of the leading avocado producers in Africa, and China is a huge market for Kenyan avocado farmers and exporters. But many have failed to meet the strict food safety standards set by Chinese importers, and this has been a major hurdle for expanding Kenyan avocado exports to China, Muthomi Ernest, CEO of the Avocado Society of Kenya, said at the 4th International Africa Avocado Congress in Kenya’s capital Nairobi.
New Finance Bill 2024 Proposes New Motor Vehicle Tax to Support Kenya Kwanza Government Projects (Capital News)
The Finance Bill 2024 has proposed the introduction of a Motor Vehicle Tax, levied at 2.5% of a vehicle’s market value. The government says the new tax is designed to provide a steady revenue stream to support the government’s ambitious development projects. The bill specifies that the tax will range from a minimum of Sh5,000 to a maximum of Sh100,000, payable at the time an insurance cover is issued. The amount is determined based on factors like the vehicle’s make, model, engine capacity, and year of manufacture.
Glovo Quits Ghana Market Today After Two Years (The Accra Times)
Glovo, a leading food delivery company, has announced that it will cease operations in Ghana today Friday, May 10. In an email to its restaurant partners, Glovo cited the difficulty in attaining profitability as the primary reason for its decision to withdraw from Ghana. The company has faced challenges in the market, which has hindered its ability to grow and sustain its operations.
The exit of Glovo from the Ghanaian market marks a significant change in the food delivery landscape. The company’s departure will likely impact its customers, restaurant partners, and employees, who will need to adapt to new options and alternatives in the market. Glovo plans to shift its focus towards expanding its presence in other African markets, where it sees more promising growth opportunities. The company aims to concentrate its efforts in countries like Morocco, Uganda, Kenya, and Côte d’Ivoire, where it believes it can achieve greater success.
Glovo says this strategic decision reflects its efforts to reassess its investment priorities and realign its strategic direction. By reallocating resources to regions with greater potential for success, Glovo seeks to optimise its operational efficiency and maximize returns on investment.
Government Intends to Leverage Fintech For SME Financing (The Accra Times)
The government has indicated it intends to leverage Financial Technology (Fintech) to provide capital to small and medium-sized enterprises. In Ghana, SMEs constitute 92% of manufacturing, 70% of growth, and provide 80% of jobs. Yet still, they usually face challenges accessing capital, Finance Minister Mohammed Amin Adam said at the inaugural 3isummit which opened in Accra on Monday, May 13.
“Our focus going forward is, therefore, to generate growth within our borders by increasing access to capital. This cannot be achieved without a strong fintech infrastructure; an important requirement to address the efficiency of delivering capital to SMEs and reducing the risks of recovery of funds by financial institutions,” Amin Adam said.
My Goal is for Ghana to have the First Blockchain-Powered Government in Africa - Dr Bawumia (The Accra Times)
With the increasing infusion of digitalization into the provision of Government services and everyday life, coupled with plans to adopt the highest levels of data security in the provision of such services, Ghana is well on its way to becoming the first blockchain-powered government in Africa and one of the very few in the world, Vice President Mahamudu Bawumia has announced.
“We are going to adopt blockchain technology for government to ensure that all data and transactions in the government space are transparent and tamper-proof; no one can change them, and so ours could well become the first blockchain-powered government in Africa,” the Vice President stated in Accra on Thursday, May 9, 2024.
Huawei To Support Nigeria’s Digital Transformation, Sets $15m Incentives For Partners (Leadership News)
Huawei Technologies has restated its commitment to accelerating Nigeria’s digital transformation, even as it announced plans to incentivise its partners with a substantial investment of $15 million annually. This move was part of Huawei’s strategy to strengthen its relationships with partners and to explore how to enhance the “Partner + Huawei” ecosystem, enabling customers to create greater value through digitization and bringing the digital world within reach.
At the Huawei Nigeria Connect 2024, held over the weekend in Lagos, partners gathered to discuss ICT trends, industry advancements, and the company’s latest strides towards ensuring a fully connected, intelligent world.
The Managing Director of the Enterprise Business Group, Huawei Nigeria, Terrens Wu, sincerely appreciated the strong support and profound trust from valued customers and partners in spreading the reach of technologies. According to Wu, technology has enabled a lot of things, and we need to embrace the latest technology, including cloudification, decarbonisation, and digitalization in Nigeria. “Currently, everyone, every organisation, and all the countries are talking about the digital economy, and especially when we see the digits of the growth, we can easily find out the digital economy is growing rapidly. It is two times the regular gross domestic product (GDP) growth in most countries.
“So what it tells us is that as long as the industry, as long as countries embrace and accelerate the digital transformation, the digital economy will grow quickly and contribute more to the country’s GDP development.”
Mauritius formally accepts Agreement on Fisheries Subsidies (WTO)
Director-General Okonjo-Iweala said: “I warmly welcome the formal acceptance by Mauritius of the Agreement on Fisheries Subsidies. This is a concrete demonstration of Mauritius's commitment to the WTO system and to global efforts to improve the sustainability of the world's marine fisheries. The fisheries sector has historically been an important source of employment and exports for Mauritius and continues to figure prominently in its plans to develop its blue economy. A healthy ocean, built on strong and cooperative fisheries management, will be a reliable source of long-lasting economic and environmental benefits, paying dividends for future generations of Mauritians.”
Mauritius's instrument of acceptance brings to 75 the total number of WTO members that have formally accepted the Agreement. Thirteen members from Africa have formally accepted the Agreement. Thirty-five more formal acceptances are needed for the Agreement to come into effect
Wamkele Mene predicts Africa’s economy will reach $16.3 trillion by 2050 (MyJoyOnline)
The Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, has projected that Africa’s economy will reach an estimated $16.3 trillion by the year 2050, positioning it as the 8th largest global economy. Speaking at the 3i Africa Summit in Accra, Mr Mene emphasised the crucial role of leveraging fintech for businesses to maximize outputs.
He urged African governments to harness all available technological resources to drive growth and sustainability in their economies, highlighting the necessity for achieving prosperity across the continent. “The existential economic sovereignty of our continent is precisely why the African Continental Free Trade Area was established so that we can leverage this market of 1.4 billion people, which by 2050 is projected to be the 8th largest economy in the world with $16.3 trillion, 27 years from now. But, if we don’t deploy these digital technologies, all of us are going to be discussing where we got it wrong.”
Gabby Otchere-Darko calls for need to invest in infrastructure to unleash Africa’s prosperity (GBC)
Founder and Executive Chairman of Africa Prosperity Network (APN), organizers of Africa Prosperity Dialogues (APD), Gabby Asare Otchere-Darko, has called for the need to invest in infrastructure to unleash Africa’s potential and its drive to prosperity.
Speaking at the launch of the Africa Prosperity Dialogues 2025 at the secretariat of the Africa Continental Free Trade Area (AfCFTA), Africa Trade House, in Accra on Monday, May 13, 2024, Mr Otchere Darko, said despite the continent’s potential, its infrastructure gap serves as a more potent blockade.
He said it has become critical now more than ever, because unlocking the continent’s prosperity depends on prioritizing investment in infrastructure, connecting people through infrastructure, and integrating to economies to create and spread opportunities and prosperity to every community.
“The success of AfCFTA hinges on key enablers, such as energy, water, R&D, ICT, transport & logistics, and the digital economy. This calls for substantial investments in infrastructure, that will yield even greater rewards, enabling our efforts to create a larger pool of good jobs with good pay,” Mr Otchere Darko indicated.
African countries urged to improve connectivity to boost tourism (Capital News)
African countries should work together to improve air connectivity, which would boost tourism and economic growth, South African Minister of Tourism Patricia de Lille said on Monday. De Lille made the remarks on Monday evening during the African Tourism Ministers Dialogue in South Africa’s port city of Durban. She said Airports Company South Africa (ACSA) will spend 21.7 billion rand (about 1.18 billion U.S. dollars) to develop airport infrastructure in South Africa.
“The rest of the world is poised to make travel more accessible, and essential source markets like China and India are set to increase; we must partner to make it easier to travel to and in Africa,” said de Lille. “Now is the time to rethink development strategies in the tourism sector and strengthen regional integration and cooperation. We have to encourage strategic public-private partnerships, promote investment in the tourism sector regionally, and refocus efforts to implement impactful projects.”
IFC and Absa to boost East Africa coffee trade with US$60mn facility (Global Trade Review)
The International Finance Corporation (IFC) has partnered with Absa Group to extend a US$60mn commodity finance facility to support coffee merchant Volcafe’s operations in East Africa. The one-year facility comprises up to US$30mn each from IFC, the World Bank’s financing arm, and South Africa-headquartered Absa.
The financing provides Volcafe with working capital to purchase coffee cherries from smallholder farmers and local traders in East Africa, as well as beans from auction systems, and to facilitate the processing, storage and transport of coffee for export.
East Africa accounts for more than 80% of the continent’s coffee production, yet millions of smallholder farmers “lack access to relevant financial support, and crop production is impacted by the unpredictable effects of climate change”, IFC says. As well as boosting market access to more than 75,000 farmers, the facility also covers training on sustainable production techniques in order to increase crop resilience and profitability, it adds.
ECOWAS members urged to beat SDGs deadline (EnviroNews)
The Director-General of West African Health Organisation (WAHO), Dr Melchior Aissi, has called on ECOWAS member states to intensify efforts to achieve the Sustainable Development Goals (SDGs) before the 2030 deadline.
Aissi made the call on Tuesday, May 14, 2024, in Abuja, at the opening of the Health Experts Committee Meeting of the 25th Assembly of Health Ministers (AHM) of Economic Community of West African States (ECOWAS) Conference. The conference was organised by the West African Health Organisation (WAHO), a specialised institution of ECOWAS responsible for health issues. The conference has “The Quality of Health Care in the ECOWAS Region, Determinants and Prospects” as its theme.
Abidjan-Lagos corridor: opening of the workshop to validate the results of the spatial development initiative study (Modern Ghana)
The Economic Community of West African States (ECOWAS) Commission, in collaboration with the African Development Bank (AfDB), is organising a validation meeting for the Spatial Development Initiative (SDI) study for the Abidjan-Lagos Corridor from 14 to 16 May 2024 in Accra, Ghana.
These experts will discuss the results of the SDI study, including a comprehensive roadmap for the development of the Abidjan-Lagos corridor, considering economic, social, environmental and logistical factors, that will enable them to obtain funding and support from international organisations, governments and private investors.
This study also aims to (i) identify and unlock the region’s inherent and latent economic potential, and ensure the commercial visibility of the project as well as the economic and industrial value chains, (ii) provide tools and methodology for an economic survey, (iii) propose a mechanism for building consensus among all key project stakeholders, (iv) shed light on existing institutional arrangements and propose alternative options, and finally (v) carry out detailed socio-economic assessments and market analysis of the selected priority projects.
Nigeria Calls for Collaboration Among ECOWAS States to Develop West Africa’s Tourism Sector in West Africa (Arise News)
Nigeria’s government has called for collaboration among the countries of the Economic Community of West African States (ECOWAS) to develop the tourism potential of the subregion and place West Africa in prime position to compete with other regions.
The Director General of the Nigerian Tourism Development Corporation, Folorunsho Coker, also called for the streamlining of policies on tourism in countries in the subregion while delivering a speech at the opening ceremony of the meeting of experts and stakeholders of the private tourism industry on the monitoring and evaluation mechanism of ECOTOUR 19-29 and the ECOWAS Tourism Accommodation regulator in Abuja on Tuesday.
Coker said: “It’s the season to collaborate not to compete,” adding that: “It’s in the spirit of collaboration that we will grow pan-African tourism.”
He said: “I want to encourage the localisation of policies”, insisting that policies would only be successful when localised.
Access Bank, Mastercard Partner to Expand Opportunities for Cross-Border Payments for African Businesses (The Accra Times)
A leading multinational bank, Access Bank Group, has launched an innovative solution in collaboration with Mastercard to expand access to cross-border payments and remittances to and from the continent, bringing Africa closer to the global economy. By leveraging the network and treasury capabilities of Mastercard Move, Access Bank, through its cutting-edge Access Africa platform, shall empower individuals and businesses to enjoy instant, traceable, seamless, and cost-effective international transactions.
Effective today, the newly launched solution will be operational across Africa, with expansion plans in place for further penetration across the continent.- Advertisement - The solution offers a global gateway for businesses and individuals that are leveraging Access Bank Group’s deep understanding of African markets and forward-looking vision that aims to realise customers’ aspirations through innovative product sets.
Data Blog - Trade data reveal changing patterns in electric vehicles market (WTO Blog)
Electric vehicles (EVs) are radically transforming the transport sector, redefining the automotive market, and reshaping global trade in transport equipment. By the end of 2023, EVs accounted for more than a third of all car imports in value terms.
Recent years have seen a dramatic increase in sales of various types of EVs — including hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV), but they were not separately considered in the trade statistics. As a result, in 2017 the World Customs Organization implemented an amendment to the classification system for traded goods — the Harmonized System (HS) introduced new categories to differentiate between traditional internal combustion engine (ICE) vehicles and their electrified alternatives.
Success of continent’s digital economy hinges on collaborative efforts (The Business & Financial Times)
Chief Executive Officer-MTN Ghana, Stephen Blewett, has emphasised the importance of collaboration in unleashing Africa’s economic potential. Reiterating the immense promise of the continent’s digital economy, he noted that challenges such as infrastructure limitations and digital literacy gaps persist.
Speaking at the 2024 3i Africa Summit held in Accra, he called for a collaborative effort among leaders, innovators, businesses, financiers and investors to accelerate this transformation and create a sustainable and inclusive digital economy for Africa.
“The digital economy in Africa holds immense promise, but its success relies on our collective efforts to drive innovation, attract investment and create a positive impact. “As leaders, it is our responsibility to champion these causes; whether by supporting startups, advocating for policy reform, investing in infrastructure or fostering collaboration among various stakeholders. I believe that, together, we can shape an Africa which not only thrives in the digital age but also serves as a shining example of inclusive and sustainable development,” Mr. Blewett stated.
Mr. Blewett’s call came at a time when the World Bank, in its January 2024 Results Brief, reported that 160 million Africans gained broadband Internet access between 2019 and 2022.
Also, there was a 115 percent increase in Internet users between 2016 and 2021 in sub-Saharan Africa alone, while 191 million additional individuals made or received a digital payment between 2014 and 2021.
Let’s embrace technology to harness fintech, digital innovation (Citinewsroom)
President Nana Addo Dankwa Akufo-Addo has emphasised the importance of fintech and digital innovation for African governments to fully benefit from the African Continental Free Trade Area (AfCFTA). He attributed this to AfCFTA’s potential to significantly alter the economic landscape and bring about transformation across the continent.
At the 3i Africa Summit in Accra, he underscored the necessity for African governments to adopt technologies that are currently reshaping the global economy and adapt them to the continent’s needs. President Akufo-Addo further highlighted the need for African governments to make substantial investments in digital infrastructure, formulate policies, stimulate innovation, and attract investments.
China-Africa grip tightens, as US, Russia eye fresh avenues (The Exchange Africa)
For the first time, the China-Africa Economic and Trade Expo (CAETE) came to Africa, with Nairobi playing host last week. According to the Ministry of Commerce of the People’s Republic of China, it is expected to go around the continent, with different countries hosting the forum in the coming years. The Asian country is seen to be keen to continue with its influence and trade dominance on the Af
Private Sector Pumps $86B into Infrastructure in Low- to Middle-Income Nations (World Bank)
New World Bank data finds that private infrastructure investment in low- and middle-income countries totaled $86 billion in 2023. Investments declined 5% compared with 2022, however, were on par with the previous five-year average. Despite the decline in total investment, more countries received private investments in infrastructure across a wider sample of projects. In 2023, 68 countries received investments across 322 projects, compared to 54 countries and 260 projects in 2022. Guinea Bissau, Libya, Papua New Guinea, São Tomé and Príncipe, and Suriname achieved their first private participation in infrastructure (PPI) transactions in more than a decade.
The Private Participation in Infrastructure report dates back to 1984. It tracks investments in 10,000 infrastructure projects in low- and middle-income countries on a continuous basis. As infrastructure financing becomes a bigger priority for countries around the globe, this dataset is an important resource for tracking progress and identifying trends.
“Getting the right infrastructure in place is crucial for people to live to their full potential. With government budgets under pressure and an infrastructure financing gap totaling multiple trillions of dollars, more private sector participation is needed to deliver infrastructure projects,” said Guangzhe Chen, Infrastructure Vice President at the World Bank.
Europe: Turning the Recovery into Enduring Growth (IMF)
Europe has successfully navigated through this tumultuous period, and a soft landing has now come within reach. But this also puts the spotlight on what may be Europe’s more fundamental problem: to sustain the recovery and lift its still miserable-looking medium-term growth outlook.
Here an important new debate has begun about the blueprint for Europe’s future growth model. Just two weeks ago, two important reports were released. Enrico Letta’s “Much more than a market”[1] and Christian Noyer’s “Developing European capital markets to finance the future.”[2] They outline in convincing fashion the case for a more integrated, green, and inclusive Europe.
What can Europe do? The way to higher growth may lead through the Single Market. A recent IMF study [3] finds that reducing remaining barriers to the Single Market for goods and services by 10 percent could raise European output by as much as 7 percentage points over the long term.
Trade integration in the EU is still only a fraction of the level observed among US states. Services trade, in particular in transportation, distribution, and logistics, remains constrained. These markets need to be opened up to raise incentives for productivity improvements.
New facilitator details next steps for dispute settlement reform talks after consultations (WTO)
Based on these consultations, she relayed that work will proceed in two configurations: monthly HoDs meetings and technical work by experts representing WTO members. Ambassador Dwarka-Canabady, whose appointment by members as facilitator was announced by the General Council Chair on 18 April, said she spoke to 34 delegations and group coordinators, which in total represent more than two-thirds of the membership, on how to take the work on dispute settlement reform forward.
IDA’s Role in an Increasingly Complex Global Aid Architecture (World Bank)
The burden on low-income countries The unwieldy growth has led to significant circumvention of government budgets. Additionally, many donors and varied channels have created obstacles for low-income countries with weak implementation capacity, particularly those already struggling with debt or in conflict and fragile situations. For example, The situation is dire in small countries. Tajikistan (w
Biodiversity Masterplan: Science, Technology Negotiations Underway (Inter Press Service)
Suarez said as parties to the CBD resume negotiations on crucial science and technology, “it is to develop and agree on a monitoring framework to track progress and implementation of the Biodiversity Plan. Africa, Biodiversity, Climate Action, Climate Change, Conferences, Conservation, Development & Aid, Editors’ Choice, Environment, Featured, Global, Headlines, Indigenous Rights, Natural Resources, Sustainable Development Goals, TerraViva United Nations
South Africa will be president of the G20 in 2025: two much-needed reforms it should drive (The Conversation)
The meetings will focus on issues such as the challenges facing the global economy and whether the current arrangements for global economic governance are able to respond effectively. There was a great deal of discussion about the inability of current arrangements to adequately address global challenges like climate, public health, inequality, poverty and digitalisation.
Quick links
Kenya floods: as the costs add up pressure mounts on a country in economic crisis (The Conversation)
Digital trade sector inches closer to solving reliability puzzle (Global Trade Review)
BRICS currency union: Will it dethrone the dollar’s hegemony? (The Herald)
Related News
tralac Daily News
The Minister of Trade, Industry and Competition, Mr Ebrahim Patel, has released the dtic’s Industrial Policy and Strategy Review in an event which took place yesterday at a manufacturing facility at the Tshwane Automotive Special Economic Zone (TASEZ) in Gauteng.
The pdf Industrial Policy and Strategy Review (8.94 MB) maps the measures and action of the South African government over the past five years under the Reimagined Industrial Strategy laid out by President Ramaphosa; reflecting further on the evolution of policy actions during democratic period from 1994.
“We chose to launch our policy and strategy review here at the Tshwane Automotive Special Economic Zone as an embodiment of the new approach to industrial policy and SEZ implementation adopted by Government as part of the Reimagined Industrial Strategy. Industrial policy during this period has been characterised by increased collaboration and partnership with social partners.
Green energy presenting South Africa with massive reindustrialisation chance (Engineering News)
Green electrons and green molecules are presenting South Africa with a massive opportunity to reindustrialise, Nedbank CIB head of infrastructure, energy and telecommunications Mike Peo told the Green Hydrogen Roundtable on Monday.
“We have an opportunity for South Africa to completely reindustrialise, to start building up our industrial base that we have lost over the last ten to 15 years,” was Peo’s inviting message at the event addressed by the Chemical Industries Education & Training Authority (CHIETA) CEO Yershen Pillay, as well as by Higher Education and Training Department deputy director-general Zukile Mvalo. (Also watch attached Creamer Media video.)
The outlook comes against the far-reaching current generation of renewable solar and wind energy and the big volumes of renewable-energy generation planned, which provides scope for the generation of green molecules in addition to green electrons. On the widespread opportunity presented by the generation of green molecules, Peo drew attention to what he described as “a massive misunderstanding of what green hydrogen represents”. “Huge numbers of people think that green hydrogen is one particular thing. The view held by many is that green hydrogen is going to be manufactured and used as a fuel source. We’ll convert electrons into molecules and do something with those molecules. “But the reality is that there’s an incredible ecosystem that exists around green hydrogen. There are maybe 30 to 40 very specific types of opportunity that can arise as a consequence of building green hydrogen and green ammonia production plants and having molecules that can be utilised.
Zimbabwe Hypes New Gold-Backed Currency in Search for Investment (BNN)
Zimbabwe is making a fresh push to lure foreign capital and is using its new gold-backed currency to persuade investors it won’t repeat mistakes that led to hyperinflation and economic woes in the past. The southern African nation, whose serial currency crises have made it a watchword for policy malpractice, kicked off an international road show that took it to Johannesburg last week with upcoming visits planned for London and Dubai.
Still, skeptics doubt the ZiG, short for Zimbabwe Gold, will avoid the same fate of its predecessors, which were all rendered worthless by the government’s habit of printing money to finance spending.
Unveiled on April 5, the ZiG is Zimbabwe’s sixth attempt at a stable local currency in 15 years. It replaces the Zimbabwean dollar, whose value had plummeted 80% against the greenback since the start of the year, and is backed by 2.5 tons of gold and $100 million in foreign exchange reserves held at the central bank.
Analysts are reserving judgment.
Government launches digital cross border permits and COMESA licenses (The Herald)
Government has launched digital cross border permits and the Common Market for Eastern and Southern Africa (COMESA) carrier licenses for passenger and transport operators to facilitate the smooth and unimpeded flow of cross-border traffic between countries. The new ICT system for processing these permits and licenses is fully integrated with the Central Vehicle Registry to validate vehicle licensing and registration details.
In a statement yesterday, Transport and Infrastructural Development Minister Felix Mhona confirmed the development. “Pursuant to the objectives of National Development Strategy 1 and the utility of digitalization as an enabler of economic development across the broad spectrum of growth factors, including in transportation, the Ministry of Transport and Infrastructural Development wishes to advise the public of the launch of the digital Cross Border Permits and COMESA Carrier Licenses for passenger and freight transport operators with effect from Thursday 9 May, 2024.
He said the digital Cross Border Permits and COMESA Carrier Licenses have enhanced security features. “Consequently, as a counterfeit deterrence measure, these permits and licenses have a digitally signed barcode which is readable by any mobile device. It is now easier for both local and regional traffic law enforcement agents to verify and validate their authenticity.
FG Committed To Digital Transformation Of Nigeria’s Economy (TVC News)
The administration of President Bola Tinubu is steadfast in its commitment to restructuring Nigeria’s communications and digital economy. This was highlighted at a leadership retreat organized for Galaxy Backbone Company staff in Abuja, where the Minister of Communications, Innovation, and Digital Economy also gave expressed his support for new ideas to grow the sector.
Digital transformation has become a crucial part of any modern organization’s success as it can be used to enhance customer experience, and develop new services and products, and create better strategies for growth. Nigeria cannot be left out in this move for complete digital transformation which is why Galaxy Backbone a Digital Infrastructure and Services Company of the federal government has organised this two day leadership retreat Arriving from various parts of the country, regional heads from the company are eager to share ideas and deliberate.
Nigeria, China Customs Sign Agreement On Trade Facilitation (Leadership News)
The Nigeria Customs Service (NCS) has signed a Memorandum of Understanding (MoU) with the General Administration of Customs of the People’s Republic of China (GACC), to foster bilateral relationship for the enhancement of economic growth between both countries. The Comptroller-General of Customs (CGC), Adewale Adeniyi, led some of his management team in Shenzhen on Wednesday, where he highlighted the significance of knotting bilateral affiliation with China, which, according to him, will boost the two countries’ import-export operations and favour the businesses of MSMEs in Nigeria.
He also applauded the recent exponential rise in the development of e-commerce, adding, “We know a lot of Nigerian companies and SMEs take advantage of the opportunities aided through e-commerce.” CGC Adeniyi expressed optimism that the NCS-GACC Memorandum of Understanding will serve as a critical component of cooperative security and trade relationship between the two nation’s Customs agencies.
IFC and Egypt announce $100m financing deal, $50m earmarked for women-owned businesses (Trade Finance Global)
Today, the International Finance Corporation (IFC) and Egypt announced a $100 million financing deal at the “IFC Day in Egypt”. Rania Al-Mashat, Egypt’s Minister of International Cooperation and the country’s representative at the World Bank, presided over the signing of the financing deal between the IFC and Banque du Caire. This event also included the ratification of a consultancy contract with the General Authority for Comprehensive Health Insurance.
Minister Al-Mashat witnessed the agreement between Banque du Caire and the IFC, earmarking $100 million to enhance the growth of small, medium, and micro-enterprises within the private sector. This deal includes a $50 million allocation to support women-led entrepreneurial ventures, alongside another $50 million dedicated to facilitating trade through the IFC’s Global Trade Finance Program (GTFP). The Minister highlighted the importance of today’s agreement, noting it builds upon previous collaborations, such as the IFC’s $100 million investment in Egypt’s inaugural green bonds for the private sector, a step towards sustainable development and emission reduction.
Libya: Staff Concluding Statement of the 2024 Article IV Mission (IMF)
Several shocks have hit Libya, but their impact on GDP growth has been muted. Tropical storm Daniel struck Eastern Libya in September 2023, leading to devastating floods, catastrophic damage, and a tragic loss of life. The disaster, however, had only a small impact on economic growth, since Libya’s GDP is mainly based on energy exports. Similarly, the economy remained shielded from the impact of the conflict in Gaza and the Red Sea shipping disruptions. In 2023, real GDP is estimated to have expanded by 10 percent, largely owing to a rebound from the oil production stoppages of 2022.
The year 2023 saw a fiscal expansion. Owing to a fall in hydrocarbon prices, government revenues declined, despite the concurrent boost to oil production. Fiscal expenditures nevertheless surged, driven by an increase in the wage bill and higher-than-expected energy subsidies (the latter despite the lower oil prices). Reflecting this expansion, money supply has grown at its fastest pace since the fall of the Ghaddafi regime.
Benin: Climate Adaptation Efforts Necessary for Sustainable and Resilient Growth (World Bank)
According to the second edition of the Benin Economic Update Report, achieving sustainable and resilient economic growth in the coming decades will depend on efforts to adapt and finance climate investments.
Titled Adapting to Climate Change for Sustainable, Resilient Economic Growth, the first part of the report analyzes recent economic developments and presents the country’s medium-term outlook. It projects that annual growth will stabilize at an average of 6.2% between 2024 and 2026 (3.5% on average per capita), driven by investment and the expansion of the Glo-Djigbe industrial zone (GDIZ).
The end of the gasoline subsidy in Nigeria in May 2023, supply chain bottlenecks following the closure of the border with Niger, and growing demand pressures have led to an increase in inflation to 2.8% in 2023, below the regional average of 3.7% in 2023.
Cameroon’s Trade with Africa Remains Marginal Despite AfCFTA Implementation (Business in Cameroon)
In 2023, only 12.7% of Cameroon’s export earnings (CFA2,988.6 billion) came from African trading partners. According to figures released by the National Stats Agency (INS), this share of export earnings is equivalent to what Cameroon captured solely from its exports to France, its second-largest customer in 2023, behind the Netherlands.
As far as imports are concerned, trade between Cameroon and African countries presents an even bleaker picture. “Imports from African countries (in 2023) fell by 2.2 percentage points on the previous year, representing 9.5% of total import expenditure (CFA4,993 billion). Within this sub-group, Côte d’Ivoire leads with a share of 1.5%, followed by Morocco and South Africa. This low proportion of trade between African countries highlights the opportunity offered by the African Continental Free Trade Area (AfCFTA) to strengthen and promote intra-African economic ties”, said the INS. However, INS data revealed a lack of adoption by many African states of this preferential trade regime, which came into force on January 1, 2021, opening the doors to a vast market of around 1.3 billion consumers on the continent.
Stakeholders Mobilise Youths To Take Advantage Of AfCFTA (Leadership News)
As Africa moves towards becoming a single market, Aloinett Advisors in collaboration with the Abuja Global Shapers have launched a campaign to empower and educate young Nigerians about the opportunities presented by the African Continental Free Trade Area (AfCFTA).
At an Open Mic Night hosted by the Abuja Literary Society, Friday tagged: “AfCFTA Dey Call, Answer with Action!,” the organiser said the aim is to engage young Nigerians through a series of informative and interactive activities.
Executive Director, Aloinett Advisors, Teniola Tayo, commenting on the campaign, said the AfCFTA is one of the most important projects in African development at the moment, and Nigeria’s effective participation can help with some of the big issues such as job creation and economic growth. “Our youth are incredibly vibrant and entrepreneurial. This campaign is a call to action to young people to take charge and take advantage of the AfCFTA. Think Africa, trade with Africa,” she added.
PAPSS Hosts its Inaugural Bank CEO Consultative Forum (Afreximbank)
Promoters of the Pan-African Payment & Settlement System (PAPSS), namely African Export-Import Bank (Afreximbank), African Union Commission (AUC) and African Continental Free Trade Area (AfCFTA) Secretariat, successfully organized the first Consultative Forum of CEOs of African Banks bringing together executives of African commercial banks, bankers’ associations, payment switches, the association of African stock exchanges and other financial service providers.
Participants reaffirmed their strong support to the decisions of the Assembly of the African Union Heads of States and Governments of 2019 and 2020. The 2019 decision adopted PAPSS as the African Financial Market Infrastructure for cross-border payments and settlements while the 2020 decision mandated Afreximbank, AUC and AfCFTA Secretariat to urgently introduce and scale up the implementation of PAPSS.
Following productive discussions, participants at the Forum agreed to take collective ownership of the success and the future of PAPSS given its significant and hugely positive impact on the facilitation of cross-border payments and the development of intra-African trade.
Mr. Mike Ogbalu III, Chief Executive Officer of PAPSS, stated: “PAPSS is fully operational and making rapid progress. We have signed on thirteen African Central Banks, and connected over 115 commercial banks, and ten payment switches across Africa. Another 115 commercial banks are in the pipeline for connection. Our foundation is solid, and the time has come for action and acceleration. It is time to use the system to drive trade in Africa, for Africans, by Africans. We urge all banks to join us in our collective effort to promote intra-African trade and development through PAPSS.”
Finance Minister highlights three key strategies to propel Africa’s economic prosperity (GhanaWeb)
Finance Minister Dr. Amin Adam has outlined a number of key strategies that deeply align with Ghana’s vision for a more interconnected and prosperous Africa and the AU agenda 2063. Speaking at the launch of the Africa Prosperity Dialogue 2025 in Accra on May 13, the finance minister said that Africa must recognize that the continent cannot achieve sustainable prosperity in isolation and therefore requires constant effort and collaboration.
“Africa’s infrastructure deficit impedes economic growth and development. Inadequate networks of road, rail, air, and waterways make transport costs in Africa among the highest in the world,” he stressed. The minister continued, “We must redouble our efforts to invest in critical infrastructure projects, including transportation, energy, and digital connectivity, to unlock Africa’s full potential for trade and investment.”
For his second point, Dr. Amin Adam urged for continued efforts for Stronger Regional Integration, which he says is a key feature of Africa’s trade. He stressed that a lack of regional integration has had some adverse implications on economic growth and development, as well as high external orientation and a relatively low level of intra-regional trade
Dr. Amin Adam concluded that measures must be taken towards Strategic and Innovative Financing, which he explains that traditional financing mechanisms may no longer suffice in meeting the growing demands of rapidly expanding economies.
AfCFTA mission can’t be achieved without digital inclusion - AfCFTA Secretary General (MyJoyOnline)
The Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene has emphasised the critical role of digital inclusion in achieving the mission of the organisation. According to him, digital inclusion is crucial for leveraging the vast market potential represented by Africa’s 1.4 billion population, projected to become one of the world’s largest economies by 2050. He said this at the 3i Africa Summit held at the Accra International Conference Centre on May 13.
However, he was concerned that without the deployment of digital technologies, this objective may not be realised. “But if we don’t deploy these digital technologies that all of us are going to be discussing today and tomorrow, I don’t [think] that we will reach that objective.
Acknowledging the pivotal role of digital trade, Mr Mene highlighted the mandate given by the heads of state to implement protocols on digital trade. He emphasised the importance of creating opportunities for millions of young Africans, placing small and medium-scale enterprises at the forefront of Africa’s economy.
COMESA region is moving closer to a harmonized energy regulatory regime (COMESA)
Energy experts are meeting in Cairo for a two-day consultative workshop on regional harmonization of regulatory frameworks and tools for improved electricity regulation in the COMESA region. The meeting is reviewing a study report of the energy market, institutional structure, and tariff frameworks in 13 regional states, focusing on their current and future energy mix, technical and operational performance along with the tariff determination mechanisms.
Twelve COMESA Member States are covered in the study including Burundi, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Rwanda, Somalia, Sudan, Tunisia, and Uganda and additionally, South Sudan. This activity is part of ongoing project funded by the African Development Bank to ultimately, enhance the sustainability of the electricity sector of the region through effective, uniform, transparent and enforceable regulatory frameworks that set out clear principles, rules, processes, and standards for the COMESA region.
East African countries hit by major internet outage (The East African)
Internet connectivity was disrupted in and around several East African nations on Sunday, the internet observatory Netblocks said, adding that the incident was linked to failures affecting the SEACOM and EASSy subsea cable systems.
Internet firm Cloudflare said on one of its X accounts that monitors trends that internet disruptions were ongoing in Tanzania, Malawi, Mozambique and Madagascar as a result of faults reported on the East African Submarine Cable System (EASSy) and SEACOM cables.
Nape Nnauye, Tanzania’s minister of information, communication and information technology said in a statement on Sunday the government had been informed by EASSy and SEACOM of disruption to the internet caused by a fault on the cables between Mozambique and South Africa. “There are ongoing efforts to solve the problem,” he said. “As they continue to solve the problem, we will have very low access to internet and international voice calls.”
East Africa trades more with its African peers than with EU, Asia (The East African)
East African Community (EAC) member states are increasingly trading with one another and with other African countries, while reduce their trade with Europe, Asia, and other parts of the world, shaping the intra-Africa trade dream projected to boost commerce and livelihoods on the continent.
The seven countries in the region (as of last year) increased their trade with the rest of Africa by $584.6 million to $4.3 billion in the fourth quarter of 2023, a 14 percent rise compared with a similar period in 2022, latest data by the EAC Secretariat shows. Cross-border trade within the region also recorded a 12 percent rise, from the previous year’s $2.6 billion to $2.9 billion in last year’s Quarter 4, an indication of rising trade within the region over the year.
But the region’s trade with the European Union (EU) countries, which traditionally account for about 10 percent of EAC’s total trade, recorded a drop of 14 percent, from $2.04 billion in the three months to December 2022, to $1.7 billion in the last quarter of 2023. This is a signal of improving trade integration on the continent, coming at a time when governments are pushing for increased implementation of the African Continental Free Trade Area, which is projected to lift about 65 million Africans from extreme poverty.
The Southern African Development Community (SADC) Heads of Immigration, Labour Commissioners and Statistics held a meeting on reporting on indicators of the SADC Regional Migration Policy Framework and Action Plan as well as the Global Compact on Migration (GCM) Reporting Matrix, in Livingstone, Zambia from 06-10 May 2024.
The Director of the Organ on Politics, Defence and Security Affairs at the SADC Secretariat, Professor Kula I. Theletsane highlighted the importance of Migration statistics in regional integration and development. He buttressed that the availability of comprehensive, disaggregated data allows for sound, evidence-based policies that ensure that no migrant is left behind, especially the most vulnerable ones; supports Governments and communities to harness the economic potential of migration as migration data allows for highlighting migrants’ contribution through the transfer of remittances and knowledge, trade and foreign direct investment and allow monitoring of progress made towards achieving global commitments such as the Sustainable Development Goals and those contained in the Global Compact for Safe, Orderly and Regular Migration.
Official Launch of the 1st West African Festival of Arts and Culture (ECOFEST 2024) in Abidjan (ECOWAS)
The official launching ceremony of ECOFEST 2024 was held on Saturday 11 May 2024 at the Palais de la Culture in Abidjan in the Republic of Côte d’Ivoire. Organised by the Commissions of the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU), in partnership with the Republic of Côte d’Ivoire, the first edition of ECOFEST will be held from 21 to 28 September 2024 in Abidjan, under the theme: “Culture, a catalyst for peace, diversity and economic and social integration in West Africa”.
The aim of this high-level cultural event is to promote the values and cultural identities of the peoples of the Community with a view to strengthening regional integration through the blending of the region’s populations. The festival also aims to usher in a new era in the celebration of West African cultural diversity and to reaffirm the role of culture as a driving force for integration, social cohesion and the socio-economic and cultural development of West Africa.
Validation Workshop of the ECREEE Gender Mainstreaming Strategy and Action Plan 2023-2027 (ECOWAS)
The ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) held a validation workshop for the ECREEE 2023-2027 Gender Mainstreaming Strategy and Action Plan Report the 9 May 2024 in Praia.
At the opening ceremony, the executive director of ECREEE, Mr. Francis Sempore, emphasized the importance of mainstreaming gender considerations into energy policies and projects, underscoring that gender equality is not just a matter of social justice; it is also critical for achieving sustainable development and maximizing the impact of renewable energy and energy efficiency initiatives.
The workshop served as a platform for stakeholders to provide valuable insights, feedback, and recommendations to enhance the effectiveness and relevance of the Gender Mainstreaming Strategy. Participants engaged in lively discussions, sharing best practices, success stories, and innovative approaches to advancing gender equality within the renewable energy sector.
A report was pre-approved by the National Gender-Energy Focal Points of the Ministries of Energy of ECOWAS Member States during an online workshop on 8 May 2024.
Driving sustainable investment in West Africa’s mining industry (GhanaWeb)
West Africa boasts extensive reserves of gold, iron ore, diamonds, and other critical minerals, positioning it as a pivotal player in the global mining sector. The mining industry is a cornerstone of many West African economies, contributing substantially to GDP and continuously drawing exploration and investment due to its role in economic development. Nations such as Ghana, Burkina Faso, Mali, and Ivory Coast have seen heightened activities, especially mining gold, bauxite, and iron ore.
Despite its significance, the mining industry in West Africa encounters a mix of trends and challenges that influence investment opportunities. The abundance of mineral resources in the region draws considerable regional and global investor interest.
Yet, challenges such as volatile commodity prices, influenced by global market dynamics, regulatory uncertainties, and political instability deter investment. Other factors such as geopolitical issues, including conflicts and civil unrest cause concerns over investment security which further compound the risks to mining operations. Community engagement and environmental considerations are becoming increasingly pivotal in the mining sector. Local communities demand more involvement in decision-making processes and expect mining companies to minimize environmental impacts and contribute positively to regional development.
“We are willing to open discussions on areas for cooperation with ECA. Agriculture is the solid foundation of any country’s modernization, stability and prosperity. China attaches great importance to agriculture and the related value chains” said His Excellency Wang Yingwu, Ambassador of the People’s Republic of China to Cameroon.
During the discussion He had with Jean Luc Mastaki, ECA Director for Central Africa, the Head of the Chinese Diplomatic Mission outlined the central place occupied by the agricultural development the in cooperation with Cameroon: “Food products are strategic commodities. All developed countries attach great importance to agricultural value chains and support this sector”. The current state of the world economy and recent international crises comfort the diplomat’s views on the central place of the sector in the structural transformation process, given the food security concerns which have risen in Cameroon and the sub-region since the outbreak of COVID19.
Kenya’s President William Ruto has intensified his campaign for a substantial replenishment of the African Development Fund, underscoring the transformative impact of the Fund-backed projects in the country. The Fund is the concessional window of the African Development Bank Group.
President Ruto reaffirmed his advocacy during a high-level meeting with Dr Akinwumi Adesina, President of the African Development Bank Group, at State House, Nairobi on Thursday. Adesina was visiting Kenya to assess preparations for the Bank Group’s 59th Annual Meetings scheduled for the 27th to 31st of May. He also engaged with media leaders at the AllAfrica Media Leaders’ summit held in the city.
In his address at the World Bank’s International Development Association (IDA) meeting in Nairobi last month, President Ruto called for a substantial $25-billion 17th replenishment of the African Development Fund which supports 37 low-income countries across the continent. The ongoing 16th replenishment—which raised a historic $8.9 billion in December 2022—is set to conclude next year.
Africa now emits as much carbon as it stores: landmark new study (The Conversation)
A landmark new study has found that, in the last decade, the African continent has started emitting more carbon than it stores. When the total amount of carbon that is sequestered by natural ecosystems (such as the soil and plants in grasslands, savannas and forests) exceeds the amount of total carbon emissions within a system, it’s referred to as a net sink of carbon. But, the study found, as natural ecosystems are converted for agricultural purposes, the carbon storage capacity is decreasing – while the rate of emissions is increasing.
Finding ways for Africa to develop in a way that is carbon neutral is a big challenge. Investment in carbon-neutral energy sources and reducing reliance on fossil fuels would be a start. But this has never been done – all developed countries have grown their economies on the back of massive fossil fuel use. If African countries are to become carbon-neutral and also grow their economies, global support and funding will be required
However, fossil fuels are only part of the problem in Africa as less than half the continent’s greenhouse gases currently come from fossil fuels; land use change and agricultural expansion are the leading cause of its emissions. There are many innovative approaches to producing food in ways that emit fewer greenhouse gases – again, the challenge is to find ways to roll these out at scale.
Climate change: alarming Africa-wide report predicts 30% drop in crop revenue, 50 million without water (The Conversation)
If climate change continues on its current trend, crop production in Africa will decline by 2.9% in 2030 and by 18% by 2050. About 200 million people risk suffering from extreme hunger by 2050. The crop revenue loss of approximately 30% will cause a rise in poverty of between 20% and 30% compared to a no-climate-change scenario. How this will happen is that climate change will drive agricultural production down, so crop sales will suffer although scarcity will raise prices.
In Africa, 42.5% of the working class is employed in the agricultural sector. The incomes of those, mostly rural, workers will decline. Already, a higher share of people living in rural areas are poor and most impoverished people in Africa are concentrated in the rural areas. The decline of the agricultural sector is likely to push more people into severe poverty.
African countries will suffer significant economic loss after 2050 if global warming is not limited to below 2°C, a new study by the Center for Global Development has found.
Quick links
China and Africa tied together by roots of agriculture (China Daily)
AI becomes latest frontier in China-US race for Africa (Voice of America)
Green Growth Summit to drive sustainable transition in Egypt, MENA (Ahram)
More Diversified Trade Can Make Middle East and Central Asia More Resilient (IMF)
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South Africa may curb Shell’s oil exploration over gas-pump exit (Engineering News)
South Africa’s energy ministry signaled it may grant fewer oil exploration permits to Shell over the company’s plans to exit the nation’s fuel-supply business. The oil major is selling its shareholding in Shell Downstream South Africa, which includes a network of 600 gas stations across the country, following a review of its business across regions and markets. Mineral Resources and Energy Minister Gwede Mantashe said he’s requested a meeting with Shell officials to discuss the matter.
“They still want to stay upstream, so what we should be doing, we should be more reluctant to grant licences and permits, at that level, to Shell,” Mantashe said in an interview Thursday on the sidelines of an election campaign event in Richards Bay. Shell’s oil-exploration business has faced multiple challenges in South Africa, where the company has relinquished licenses over legislative uncertainty. The nation’s Upstream Petroleum Resources Development Bill has yet to be finalized after a process that’s dragged on for years. Environmental groups have also blocked exploration for hydrocarbons in South African waters through legal action.
Green hydrogen community development toolkit launched (Engineering News)
Green Hydrogen South Africa (GHSA), with support from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), has developed a community development toolkit (CDTK) to support project developers in effectively engaging with local communities. The CDTK will be piloted in June. Project developers who are interested in piloting the toolkit have been encouraged to submit their applications here before May 15.
This comprehensive resource will assist project developers to establish robust and mutually beneficial relationships with host communities. By adapting best practices from established sectors such as mining and energy to the unique needs of the green hydrogen industry, the toolkit aims to ensure accessibility, inclusivity and practicality.
The government of Madagascar and the African Development Bank have agreed to consolidate the mid-term results of the Country Strategy Paper 2022-2026 and to maintain its strategic directions until 2026. This was the conclusion of the workshop of 6 May 2024 in Madagascar.
During the workshop, the two parties agreed to maintain the focus on the Bank’s key areas – transport, energy, agriculture and industry – for the next two years. The two CSP 2022-2026 priority areas thus remain transport and energy infrastructure development for inclusive growth, and support for transforming agriculture and developing manufacturing industries.
Namibia advocates for the combination of AGOA and AfCFTA (Windhoek Observer)
According to Iipumbu, combining the two trade initiatives will be a game changer in terms of increasing the size of the market for African countries by creating an attractive environment for investment and allowing the continent to industrialise. The minister was speaking at the Invest in Namibia session at the 16th US – Africa business summit that took place on Wednesday in Dallas, Texas in the United States of America.
She said Namibia is also calling for the inclusive extension of AGOA, which must include African Union member states that have signed and ratified the agreement establishing the AfCFTA. This is important because AfCFTA allows for cumulation among African countries and regional value chains to form and enable better utilisation of AGOA.
‘’It is our fervent hope that such cooperation around investments and entrepreneurship development will be the basic building block of ensuring the ultimate collaborations with the U.S are optimised fully. Competitiveness for Africa’s integration calls for frontloading digital capabilities that also support entrepreneurship.
Harnessing AfCFTA in Repositioning Africa’s Agricultural Sector (The Accra Times)
Africa’s agricultural sector is characterized by both immense potential and significant challenges. Despite the abundant natural resources on the continent, this sector remains underdeveloped, with a high import dependency value of $75 billion for 100 million metric tons of cereals annually.
The continent has the highest prevalence of chronic hunger, with about 278 million citizens exposed to acute hunger. Africa’s longstanding challenges, such as limited market access, fragmented value chains, inadequate infrastructure, and finance, are barriers to reaching its full potential in the global agricultural standing. The African Continental Free Trade Area (AfCFTA) represents a unique opportunity for African countries to leverage free trade and overcome the challenges hindering this sector’s growth and development.
One of the key challenges facing Africa’s agricultural sector is its fragmented value chain. The fragmented value chain results from the lack of coordination and integration among its agricultural actors, including the farmers, input suppliers, processors, distributors, and retailers. The fragmentation hinders the efficient flow of agricultural products from farm to market and undermines Africa’s agricultural sustainability.
Kenya hosts China-Africa economic trade expo amid growing Sino-African ties (The New Times)
The China-Africa Economic and Trade Expo (CAETE) in Africa (Kenya) 2024 kicked off on Thursday in the Kenyan capital of Nairobi as trade and investment between the two sides continue to expand. The event in Kenya attracted a high-level delegation from central China’s Hunan Province.
Rebecca Miano, cabinet secretary for the Ministry of Investments, Trade and Industry, said the three-day event is a living testament to the long-standing cooperation and friendship between China and Africa. “The real focus of the event is to serve as a catalyst for unlocking Africa’s unexplored potential by seamlessly connecting with China’s investment and trade community.”
Digital Cross-border Permits And COMESA Carrier Licences For Transport Operators Launched (Pindula)
Pursuant to the objectives of National Development Strategy 1 and the utility of digitalization as an enabler of economic development across the broad spectrum of growth factors, including in transportation, the Ministry of Transport and Infrastructural Development wishes to advise the public of the launch of the digital Cross Border Permits and COMESA Carrier Licences for passenger and freight transport operators with effect from Thursday 9 May 2024.
A digital Cross Border Permit is issued in terms of Article 4 of the Bilateral Road Transport Agreements signed between Zimbabwe and SADC Member States. Similarly, a COMESA Carrier Licence is issued in terms of Article 85 of the Common Market for Eastern and Southern Africa Treaty.
The Bilateral Road Transport Agreements and the COMESA Treaty are meant to facilitate the smooth and unimpeded flow of cross-border traffic between countries.
The Southern African Development Community (SADC) held an Inter-Ministerial Task Force Meeting of Ministers of Trade, Transport, Infrastructure and Security Portfolios from the Democratic Republic of Congo (DRC) and from the Republic of Zambia on the Resolution of the Perennial Challenges Affecting the Kasumbalesa and other Border Posts on 09 May 2024 in Kinshasa, DRC. The Meeting was convened to consider the Draft Framework of Collaboration and Action Plan that was developed with the objective of finding and implementing long term solutions to the continued challenges faced by transporters and drivers at the Kasumbalesa Border Post between the DRC and Zambia.
Delivering a statement on behalf of the SADC Executive Secretary, His Excellency Mr. Elias Magosi, the SADC Deputy Executive Secretary responsible for Regional Integration, Ms. Angéle Makombo N`Tumba commended the Ministers, for their efforts and commitment towards finding permanent solutions to the persistent challenges at Kasumbalesa Border Post. She reminded the Meeting of the strategic importance of the Kasumbalesa Border Post to the movement of goods across our region as it is located at a point where several trade corridors in the region converge. These include the North-South Corridors, Dar es Salaam Development Corridor, Walvis Bay-Ndola-Lubumbashi Corridor, Beira Development Corridor, and the Lobito Development Corridor. In this regard, Kasumbalesa is the second busiest land border post in the SADC region after Beitbridge, between South Africa and Zimbabwe. Apart from the road network, Kasumbalesa is also connected with the regional railway network.
SADC Business Council partners to grow air capacity in Africa (Southern & East African Tourism Update)
The SADC Business Council Tourism Alliance has announced a strategic partnership with AviaDev Africa to host an interactive workshop aimed at bolstering air access and tourism growth in the Southern African region. The workshop, scheduled to take place during the upcoming AviaDev conference in Namibia in June, will bring together key stakeholders from the tourism and aviation sectors to explore strategies for sustainable route development and increased visitor arrivals.
Air access isn’t just an element on the SADC policy agenda; it’s a cornerstone for growth and a top priority, says Natalia Rosa, the Project Lead at the SADC Business Council Tourism Alliance. “Effective transport systems, including air transport, are essential not just for tourism but for economic growth and enhancing the quality of life in the region.”
ECOWAS and Nigeria collaborate on stratergies to mitigate effects of climate change (ECOWAS)
As part of the implementation of the regional climate strategy, the ECOWAS Commission, through the Department of Economic Affairs and Agriculture, supported the National Council on Climate Change of the Federal Republic of Nigeria in organizing a workshop on the socialization of Nigeria’s long-term low-carbon development strategy, which took place on May 7, 2024 in Abuja.
African countries could leverage their vast renewable energy resources, tropical forests, peatlands, and marine ecosystems to export premium carbon credits, providing a new revenue stream, according to the 2024 Economic Report on Africa by the United Nations Economic Commission for Africa (ECA) launched at the recently concluded tenth Africa Regional Forum on Sustainable Development (ARFSD-10) in Addis Ababa, Ethiopia.
The report says, carbon markets could support Africa’s goals of resilience and prosperity, in line with Agenda 2063. They also present a potential path for achieving the Paris Agreement’s climate goals.
“A failure, however, to ensure credit additionality, appropriate governance, and high enough prices could lead to perverse market incentives that increase carbon emissions and slow the climate transition on the continent,” says the report.
Air freight leads recovery in logistics sector in March (Engineering News)
The road freight sub-sector of the index, which has grown notably in recent years and now accounts for 84.5% of all freight payload in South Africa, recorded muted growth in March, signalling that many challenges remain in the early months of 2024. After tumbling in October and November, reflecting the inability of ports to handle cargo owing to a number of factors, the sea freight sub-component of the index started to recover in December, continuing its recovery in the early months of this year.
EAC outlines efforts toward elusive regional currency (The Star)
EAC Partner States are in the process of implementing the Protocol on the Establishment EAMU, which was signed in November 2013 with the hope of having the use of a common currency by the end of this year. The talk dominated the 27th Monetary Affairs Committee ( MAC) meeting held in Juba, South Sudan, with more focus put on the establishment of the East African Monetary Union (EAMU).
Development partners gathering in Paris on 14 May are expected to pledge towards the $4 billion needed to provide clean cooking access for 250 million African women by 2030. African Development Bank Group President Dr Akinwumi Adesina will co-chair the Clean Cooking Summit, to be held in Paris, alongside President Samia Suluhu Hassan of Tanzania, Prime Minister Jonas Gahr Støre of Norway, and International Energy Agency Executive Director Fatih Birol.
The landmark event aims to drive significant change in clean cooking access for the nearly one billion Africans using polluting fuels, which cause the premature deaths of approximately half a million women and children every year.
The capital investment needed to ensure universal clean cooking access in Africa by 2030 is accessible. The $4 billion needed annually is a small fraction of the $2.8 trillion invested globally in energy each year. The summit aims to mobilize this much-needed finance. It brings together governments, development partners, private companies and NGOs to make concrete commitments and develop action-oriented strategies to accelerate progress on clean cooking.
US-Africa trade deal turns 25 next year: Agoa’s winners, losers and what should come next (Modern Ghana)
The African Growth and Opportunity Act (Agoa) is a landmark piece of trade legislation enacted by the United States in 2000. Its goal is to promote economic growth, development and poverty reduction in sub-Saharan Africa by providing qualifying countries with duty-free access to the US market for over 6,500 products. By eliminating import tariffs and quotas, Agoa aims to stimulate trade, attract foreign investment and foster economic integration between the US and African nations.
Agoa has made strides in boosting exports from eligible African countries to the US. Between 2001 and 2021, the annual value of US imports from Agoa-eligible countries nearly tripled, from US$8.15 billion to US$21.8 billion. The trade preferences have particularly benefited sectors like apparel, textiles, agriculture and light manufacturing. However, Agoa’s impact has been uneven across the region. Some countries have used the opportunities more effectively than others.
Global debt crisis impacting nearly 95 countries: G20 Sherpa Amitabh Kant (The Hawk)
Amitabh Kant, G20 Sherpa, emphasizes the urgent need for inclusive growth strategies amid significant global challenges like the Russia-Ukraine conflict and Middle East tensions. Highlighting the pivotal role of G20 in promoting diverse ideologies and shaping a fair global order.
The Russia-Ukraine war and the ongoing tensions in the Middle East pose a significant challenge for global stability and economics, said G20 Sherpa Amitabh Kant while speaking at an event in Delhi. Kant added, “In the face of a global debt crisis impacting nearly 95 countries, urgent action is needed to pursue inclusive and sustainable growth strategies. As we navigate these challenges, our focus remains on achieving the Sustainable Development Goals (SDG) by 2030.”
Quick links
The Horn Of Africa States: The Coming Danger To Its Blue Economy (Part II) (Eurasia Review)
Why the African Union Stopped the Donkey Hide Trade with China (ChinaFile)
A human rights and people-centered approach in Africa is key to ensuring no one is left behind (UNECA)
Why US offshore wind power is struggling - the good, the bad and the opportunity (The Conversation)
The Canada-Africa Chamber of Business celebrates 30 years of accelerating trade and investment in Toronto (Ventures Africa)
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ECN unveils first gazetted energy policy to foster sustainable development (New National Star)
The Energy Commission of Nigeria (ECN) on Wednesday unveiled the Gazettes of the National Energy Policy (NEP) and National Energy Master Plan (NEMP) for the enhancement of energy sector performance through proper coordination and implementation of government policies.
The documents, being the first gazetted energy policy unveiled in Abuja, is the revised NEP which was approved in conjunction with NEMP in April 2022 by former President Muhammadu Buhari and gazetted in March 2024. It is said to be a very comprehensive document that has, in a very professional manner, translated the 2022 revised NEP into actionable projects, programs and action plans needed to ensure the attainment of the objectives of the NEP.
Nigeria: 2024 Article IV Consultation (IMF)
Over the last decade, Nigeria’s growth has just about kept up with population dynamics. Poverty has increased, and food insecurity is rising. The government is constrained by low domestic revenue mobilization. Governance problems remain pervasive. The external environment—cost of financing—remains difficult, high oil and gas prices notwithstanding. The new administration has set out on an ambitious reform path to restore macroeconomic stability and develop a pro-growth reform agenda
An El Niño-fueled drought kicks Zimbabwe into climate action (Devex)
Since last summer, the El Niño weather phenomenon has wreaked havoc on agricultural production worldwide. That is prompting some governments to act quickly to build their climate resilience. El Niño is caused by warmer sea surface temperatures. It occurs on average every two to seven years and typically lasts about a year. In some areas it causes drought and in others, heavy rain.
Southern Africa is experiencing a particularly brutal El Niño season, with one of its driest Februarys in 40 years and widespread crop failures. The governments of Zimbabwe, Zambia, and Malawi have all declared national disasters due to El Niño-linked droughts. Last month, Zimbabwean President Emmerson Mnangagwa said the country would need $2 billion to feed the 2.7 million people who would go hungry this year.
Zimbabwe’s government is now discussing a climate change law to advance mitigation and adaptation measures, though civil society leaders say they haven’t been properly consulted. “Climate change mitigation is a national food security issue which must be taken seriously,” economic specialist Vincent Musewe tells Lungelo.
No one will die of hunger, says President (ZBC News)
President Emmerson Mnangagwa has reassured the nation that no one will die of hunger as government has put in place measures to cushion Zimbabweans from ensure food security despite the looming drought. We have put in place measures through the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development to ensure that our communities our food secure.
Zambia suspends tax on maize imports (The East African)
The Zambian cabinet has approved the suspension of tax on all imported maize to address shortage caused by drought, Chief Government Spokesperson Cornelius Mweetwa said on Wednesday. The Ministry of Finance was instructed by the cabinet to immediately carry out the decision, he told a press briefing. While the government will be at the center of importing maize for strategic reserves, the private sector is also encouraged to seize the opportunity and engage in maize imports, Mweetwa said.
In February, the Zambian government declared a state of national disaster and emergency following poor rains that affected crop production. About 9.8 million people have been adversely affected by the drought, with 6.6 million in need of urgent humanitarian assistance, according to the government.
Ethiopia earns $835m from coffee export in 9 months (The East African)
Coffee exports have brought Ethiopia $835 million in revenue over the past nine months, an industry institution said Tuesday. The country exported 174,596 tons of coffee to the international market during the first nine months of the current Ethiopian 2023/24 fiscal year that started on July 8, the Ethiopian Coffee and Tea Authority (ECTA) said. In addition to the traditional Ethiopian coffee importing countries, the Ethiopian government has been able to create new markets in recent years, state-run Ethiopian Press Agency quoted Shafi Oumer, ECTA deputy director-general, as saying.
Saudi Arabia, South Korea, the United States, Germany and Japan are the major destinations of Ethiopia’s coffee exports over the years.
Regarded as the origin of Arabica coffee, Ethiopia is one of Africa’s largest producers and exporters of coffee. Coffee production is dubbed as the backbone of the country’s agriculture-led economy. Widely recognised for its rich coffee quality and flavor ranging from winy to fruity and chocolatey, the country’s coffee is in great demand across the globe.
Ghana Gears up on Cyber Resilience in the Digital Economy (Ventures Africa)
With Africa losing US$4 billion annually to cybercrime, the aggressors of the digital realm are gaining the upper hand. GITEX AFRICA 2024 (www.GITEXAfrica.com), the continent's largest tech and startup exhibition, taking place from 29-31 May in Marrakech, Morocco, provides a platform for leaders and executives of Africa’s tech ecosystem to share insights on cybersecurity’s crucial role in Africa’s digital economy.
As Ghana’s digital economy continues to evolve at a rapid pace, with an ever-increasing reliance on digital infrastructure, so too does the inevitable exposure to cybersecurity and data protection threats. Acknowledging the paramount importance of cybersecurity and its role in protecting sensitive information, preserving trust, and contributing to the resilience of digital infrastructure, Ghana is proactively and strategically working to enhance its cyber resilience.
Topics under discussion at the GITEX Africa Cybersecurity Forum include the role of high data costs in security vulnerability, Africa’s shortage of cybersecurity professionals, and the impact of poor security measures. Dr Albert Antwi-Boasiako, Director General of Ghana’s Cyber Security Authority, will share his insights on how Ghana is tackling these challenges.
Tunisia’s Sustained Recovery Requires Quick Action to Take Advantage of Opportunities (World Bank)
Tunisia’s economic recovery slowed in 2023, due to a severe drought, tight financing conditions and a modest pace of reform, leaving the country’s growth below pre-COVID levels, and making it one of the slowest recoveries in the Middle East and North Africa region, according to the Spring 2024 edition of the World Bank’s Economic Monitor for Tunisia.
The report, Renewed Energy to the Economy, forecasts growth rates of 2.4 percent in 2024 and 2.3 percent in 2025-26, assuming easing of drought conditions and some progress in fiscal and pro-competition reforms. The report emphasizes Tunisia’s improved external balance, its narrowing trade deficit supported by favorable international prices, and its external financing needs that remain significant. The report underscores the urgency of addressing the drivers behind the external financing challenges, including energy deficit, debt service, and level of capital inflows.
Despite gains in the tourism and export sectors, Tunisia’s economy was affected by the impacts of drought-related losses that led to an 11 percent drop in agriculture, underlining the need for adaptation to climate change. These losses have been compounded by limited domestic demand, penalizing sectors such construction and trade.
Benin blocks Niger oil exports over border dispute (BBC)
Benin has prevented neighbouring Niger from using its port to export its first crude oil, as a border dispute rages between the two nations. Relations between the two nations soured after the military staged a coup in Niger last year. Benin and other West African nations imposed sanctions on Niger, including border closures, in a bid to force the military to hand back power to the elected government. The sanctions by the Economic Community of West African States (Ecowas) were eased in February, and were expected to normalise trade relations with Niger. But Niger refused to open its land border for goods coming from Benin.
“If you want to load your oil in our waters, you must consider that Benin is not an enemy country and that [its] territory cannot be the subject of illicit trafficking or informal exchange,” he said on Wednesday. “If tomorrow the Nigerien authorities decide to collaborate with Benin in a formal manner, the boats will be loaded,” he added.
Benin’s move puts at risk Niger’s plan to begin exporting oil - the landlocked country has been producing about 20,000 barrels per day primarily for domestic consumption due to the lack of an export route.
Uganda crowned best investment destination in Africa (Business Insider Africa)
Uganda has been named the top investment destination in Africa at the Annual Investment Meeting (AIM) in Abu Dhabi, UAE. Uganda through its investment authority has won the ‘best investment destination in Africa’ award in 2024. State Minister for Investment Evelyne Anite said the gold award was bagged at the Annual Investment Meeting (AIM).
According to statistics from the Ugandan embassy in the UAE, Uganda has attracted over $1 billion in Foreign Direct Investment (FDI) from the UAE in the past two years. The Ministry of Finance, Planning and Economic Development (MoFPED) has noted that Foreign Direct Investment (FDI) inflows into Uganda increased from $1.36 billion in April 2022 to $1.5 billion for the year ending April 2023.
See also: BRICS+ Business Forum at AIM Congress 2024: Key Players Discuss Reshaping Global Economic Landscape (ARMENPRESS)
Africa Prosperity Dialogues 2025 to be launched on May 13 (GBC Ghana Online)
The Africa Prosperity Network (APN), in collaboration with the African Continental Free Trade Area (AfCFTA) Secretariat and the Office of the President of the Republic of Ghana, is to launch the Africa Prosperity Dialogues (APD) 2025. The launch which is scheduled for Monday, May 13, 2024, will be held at the Africa Trade House, AfCFTA Secretariat in Accra.
The unveiling of the APD 2025, a side event at the 3i Africa Summit, will highlight the pressing need for increased investments in integrated infrastructure networks across Africa to facilitate the seamless connectivity of people, businesses, and markets across the continent.
In a statement, the Network said presentations and discussions at the ceremony will explore strategies aimed at accelerating infrastructure development, fostering regional integration and harnessing the opportunities presented by the AfCFTA.
Africa: End the Negative Narrative, Africa is Thriving – AfDB Chief (allAfrica)
The highly-anticipated AllAfrica Media Leaders’ Summit (AMLS) is convening in Nairobi, Kenya, to address the urgent need for a thriving and independent media landscape across Africa. Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), delivered a keynote address stressing the need for a new narrative about Africa.
Adesina said the world of information is undergoing a dramatic transformation. The rise of the Internet, social media, and mobile phones has led people to rely less on traditional media sources like radio, TV, and newspapers. This shift means that more and more people are getting their news and entertainment online, with billions expected to have smartphones by 2030, especially in Africa. However, this new online world also presents challenges, as the ease of creating and sharing content, including potentially false information, can make it difficult to tell what’s true and what’s not.
“The rise of the Internet, digital and social media platforms has shifted the focus of audiences on reliance on radio, TV and print publications. “It is a whole new world where the lines between fact and fiction can become blurred,” he added. “Subsequently, positive and good news on Africa goes missing, unmarred, or even simply missing.”
Public-private partnerships essential to unlock SADC opportunities (SAnews)
Public-private partnerships (PPPs) are essential to unlock economic opportunities presented by the African Continental Free Trade Area (AfCFTA) in the transport and logistics industry for the movement of goods across the continent, says the Development Bank of Southern Africa (DBSA).
“Collaboration between the private sector and government is key to unlocking opportunities. For instance, the Lobito Railway Corridor is a brownfield project, where the private sector identified the opportunity and partnered with government,” DBSA Senior Deal Originator Bongo Bacela said on Thursday. The Lobito Corridor project entails the construction of almost 350 miles of rail line in Zambia, along with hundreds of miles of feeder roads, linking the southern part of the Democratic Republic of the Congo (DRC) and the northwestern part of Zambia to regional and global markets via Angola’s Port of Lobito.
The Lobito Corridor ushers in myriad new opportunities for economic growth and development that will unlock the region’s commercial competitiveness. This infrastructural investment is a powerful catalyst for the establishment of small businesses along the railway transport routes, fostering local economic growth.
ECOWAS focuses on empowering Agri-Food Value Chains (News Ghana)
The ECOWAS Commission organized the 5th Meeting of the ECOWAS Regional Trade Facilitation Committee (RTFC) in Cotonou, Benin from 30th April to 3rd May 2024. The meeting aimed to advance the status of regional trade facilitation initiatives within the ECOWAS region whilst focusing on enhancing the implementation of existing initiatives, addressing non-tariff barriers, and strengthening the agri-food value chain.
On behalf of Madam Shadiya Alimatou Assouman, the Honourable Minister of Industry and Trade of Benin, Mr. Benjamin ALAMENOU welcomed participants to Cotonou. In his remarks, he outlined the need to overcome trade barriers to realize the vision of free trade and the importance of initiatives like the ECOWAS Trade Liberalisation Scheme (ETLS), Brown Card Scheme, and Common External Tariff (CET) towards achieving the ECOWAS Vision 2050. He called upon Member States to leverage the meeting as a platform for engaging in productive discussions to collaboratively address trade barriers and foster regional trade growth.
The representative of the Ministry of Industry, Trade and Investment from the Federal Republic of Nigeria and the Chairperson of the meeting, Mr. Usman ABDULLAHI highlighted the importance of fostering a strong regional trade ecosystem in the face of a challenging global environment. He reinforced the importance of cooperation and collaboration between the NTFCs in promoting trade facilitation.
African Union endorse 2024 Africa Fertilizer and Soil Health Summit (Africa Science News)
African Heads of State and Government committed to revive the nutritional balance of the continent’s exhausted soils. Making what they called The Nairobi Declaration, the African leaders encapsulated the key discussions, with a focus on fostering multi-stakeholder partnerships and investments to drive policies, finance, research and development, markets, and capacity building for fertilizer and sustainable soil health management across Africa.
Notably, the leaders made 13 commitments namely, to triple domestic production and distribution of certified quality organic and inorganic fertilizers by 2034 to improve access and affordability for smallholder farmers. Throughout the three-day summit, it was emphasized that years of excessive use without adequate replenishment had resulted in severe depletion of the continent’s soils, hampering their capacity to sustain optimal crop yields.
Creative Economy in Africa on the rise (The Exchange Africa)
Two decades ago, the orange economy or what we famously refer to today as the creative economy, would not have been considered a transformative sector propelling growth in Africa. However, according to the United Nations Conference of Trade and Development (UNCTAD), the creative economy is one of the world’s fastest-growing sectors, creating employment and income for millions globally.
According to the United Nations (UN), a creative economy features a cycle of creation, production and distribution of goods and services that uses creative and intellectual capital as primary inputs. Africa is beginning to see promising potential for their creative flourishing in film, arts and crafts, fashion, design, video, photography, music and more. As Africa plays catch up, a trade report by Afreximbank indicates that Europe, North America, Asia and the Pacific account for around 93 per cent of an estimated $2.25 trillion generated each year globally by creative industries and 85 per cent of jobs created by the sector.
According to UNCTAD Africa’s share of the global creative economy remains significantly low, accounting for only around 2.9 per cent of global creative goods exports, representing at least $58.4 billion and less than 1 per cent of the continent’s African GDP. It is safe to say that creatives are at an unprecedented stage where the attention economy is becoming prevalent daily. Forbes considers attention a transaction in the world’s most valuable currency. The value of attention has never been more apparent than in the staggering $853 billion in global net advertising revenue generated in 2023 alone.
See also: Fund to invest in SA’s creative, cultural industries announced (SAnews)
Growing Africa’s share of global trade (Business Daily)
The results of the 2023 World Trade Report, which emphasises the need for re-globalisation to tackle critical global concerns through improved cooperation, inclusivity, and sustainability, serve as evidence of this. The report highlights the significance of regional economic integration through agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the African Continental Free Trade Area (AfCFTA) to optimise trade agreements and reduce intra-regional trade costs in Africa.
First UN civil society forum held in Africa heralds ‘inclusive’ Summit of the Future (UN News)
Bringing together civil society actors, government representatives, senior UN officials, young changemakers, academic and other stakeholders, the UN Civil Society Conference is the premier event on the civil society calendar at the United Nations, ahead of the Summit of the Future, set for this coming September.
Amina Mohammed, Deputy Secretary-General, in a video message to the event, began by expressing deep condolences to the victims of the devasting floods in Kenya and reiterating the United Nation’s continued commitment to supporting the Kenyan Government during this challenging time.
Dennis Francis, President of the UN General Assembly, speaking via video message, said: “For the Summit to serve as a catalyst for impactful global action, we need robust collaboration and buy-in from those directly affected to drive its action-oriented outcomes.” Referring to the documents that are expected to emerge from the Summit – the Pact for the Future, the Global Digital Compact and the Declaration on Future Generations – the Assembly President said, “we need you, civil society, to play a critical role in this process.”
What African countries need to tap more from extended Agoa (The East African)
The African Growth and Opportunity Act (Agoa) is a landmark piece of trade legislation enacted by the United States in 2000. Its goal is to promote economic growth, development and poverty reduction in Sub-Saharan Africa by providing qualifying countries with duty-free access to the US market for over 6,500 products. By eliminating import tariffs and quotas, Agoa aims to stimulate trade, attract foreign investment and foster economic integration between the US and African nations.
Agoa has made strides in boosting exports from eligible African countries to the US. Between 2001 and 2021, the annual value of US imports from Agoa-eligible countries nearly tripled, from $8.15 billion to $21.8 billion. The trade preferences have particularly benefited sectors like apparel, textiles, agriculture and light manufacturing. However, Agoa’s impact has been uneven across the region. Some countries have used the opportunities more effectively than others.
As Agoa approaches its 25th anniversary next year, policymakers are considering extending it for a further 16 years. I recently conducted a comprehensive review of scholarly articles and policy reports that analyse the impact of Agoa on the economic performance of Sub-Saharan Africa.
Zero Draft of HLPF Outcome Commits to Accelerated Action in Years to 2030 (SDG Knowledge Hub)
The agreed outcome of the 2024 session of the UN High-level Political Forum on Sustainable Development (HLPF) is under discussion among UN Member States in “zero draft” form. Informal consultations on the draft Ministerial Declaration continue from 7-8 May 2024. The zero draft is informed by inputs from delegations in writing and during the second informal consultation on 19 April 2024.
In the zero draft, governments “pledge to redouble [their] efforts to achieve a more sustainable world” and “commit[] to bold, ambitious, accelerated, just, and transformative action in the six years to 2030” and look forward to the Summit of the Future in September as an opportunity to accelerate the implementation of the 2030 Agenda for Sustainable Development and its SDGs. They reaffirm international cooperation, multilateralism, and international solidarity as “the best way” to address today’s global challenges.
Related: Revised Zero Draft of UNGA Resolution on ECOSOC, HLPF Reviews Available
Quick links
Trade Liberalisation Kicked Away African Development Ladder (Inter Press Service)
Proposed BRICS grain exchange worth monitoring (World-Grain.com)
Great Power Conflicts Pose Global Challenges, says Amitabh Kant, Advocating Focus on Sustainable Development Goals for Stability and Equity (India Education)
How do Taxes Drive the Sustainable Development Goals? (Global Issues)
Harnessing Artificial Intelligence for Sustainable Development Goals (SDGs) (UNSDG)
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Agbiz hopes for more SA agricultural exports with the BRICS+ nations (IOL)
The Agricultural Business Chamber (Agbiz) has said that while BRICS+ remained a political grouping with no formal trade structure, the bilateral agreements between the BRICS+ countries for increasing trade were encouraging. Agbiz chief economist Wandile Sihlobo yesterday said that South Africa would continue prioritising the widening of agricultural exports in this grouping, but also keep supplying its key export markets. “South Africa’s agricultural sector still has room to grow and trade is essential to the sector’s growth strategy.”
“The Kingdom of Saudi Arabia and Egypt are some of the newest [BRICS+] members. These two countries present enormous opportunities for widening South Africa’s agricultural exports. Egypt spends about $16billion (R294bn) a year importing agricultural products from the world market. These are mainly wheat, maize, soybeans, palm oil, beef, apples and pears, dairy, cotton, potatoes and tea, among other products,” he said. “It is here that South African grain farmers, traders and beef producers should focus on increasing exports.”
SA urges Africa to embrace AfCFTA for economic growth (African Insider)
The Department of Sport, Arts, and Culture’s Acting Director-General, Dr Cynthia Khumalo, has urged African nations to seize the economic opportunities offered by the African Continental Free Trade Area (AfCFTA) during the launch of Africa Month in Bloemfontein. The AfCFTA agreement is anticipated to establish the world’s largest free trade area in terms of the number of participating countries.
“As we move swiftly towards accelerating the Africa Continental Free Trade Area, we do so fully aware and taking advantages presented by this progressive continental trade arrangement that will see the heritage and creative sector benefiting significantly by doing business amongst ourselves as Africans.”
Botswana galvanises efforts to derive AGOA benefits (Fibre2Fashion)
Botswana has finalised its national response strategy for the US Africa Growth and Opportunity Act (AGOA) by identifying potential sectors for export to the United States. The strategy includes a detailed implementation schedule with actions and activities for specific sectors to be undertaken by various stakeholders. The launch date is yet to be announced.
This was conveyed recently by Botswana’s assistant minister of trade and industry Biggie Butale to a women’s leadership forum in Gaborone, according to a report in a regional weekly newspaper for southern Africa. Butale urged manufacturers to produce commodities of high standards for the US market.
Demica underpins expansion of supply chain finance to Nigerian businesses (African Review)
The supply chain finance solutions from Demica, a leading fintech, has been selected by African Export-Import Bank (Afreximbank) and Sterling Bank to provide approved payables finance to Nigerian businesses and suppliers through the AFREXIMBANK TRADELINK. “The launch in Nigeria is a first step in Afreximbank’s plans to introduce payables finance across Africa in partnership with leading African financial institutions,” said Gwen Mwaba, director and global head, trade finance, Afreximbank. “The product, which will deploy world-class technology and a collaborative delivery model, aligns with the bank’s vision of transforming Africa’s trade, and will contribute towards achievement of the bank’s strategic objective of reducing the trade finance gap in Africa, especially for the SME segment.”
AFREXIMBANK TRADELINK, is part of Afreximbank’s digital Africa Trade Gateway which provides African corporates and banks with the digital tools they need to access market information and connect with buyers and sellers.
Fresh demands arise for delayed competition, consumer protection laws (The Independent Uganda)
The COMESA Competition Commission together with Fidelis Leadership Institute have launched a training program on consumer protection and competition laws, amidst calls for the implementation of the relevant laws in Uganda.
Recently, President Yoweri Museveni assented to the Competition Act 2023 but it is yet to be operationalized due to the absence of the relevant regulations and policies. But the country is yet to have a Consumer Protection Law that would directly protect consumers against issues like unfair pricing, poor and substandard products and services, among others, despite the debate and demand being on for more than 10 years now.
Sam Wetasa, a member of the COMESA Competition Commission said the government, itself has been a culprit of the violation of competition and consumer protection rights, because there are no laws. But even with the laws, he says, the Ministry of Trade, Industry and Cooperatives, which is the supposed custodian of the law will find it difficult to enforce the laws, especially where the government is itself a culprit, giving the example of the digital motor vehicle number-plate saga.
Hussein Musiho, who represented the Permanent Secretary Ministry of Trade, Industry and cooperatives, the biggest challenges the implementation of the laws will encounter, will be the lack of knowledge, both by the business operators and the consumers.
EAC Monetary Affairs Committee addresses regional economic challenges, progress on Monetary Union (New Vision)
The 27th Ordinary Meeting of the East African Community (EAC) Monetary Affairs Committee (MAC) convened on May 3, 2024, in Juba, South Sudan. Reflecting on the economic performance of the EAC region in 2023, the Committee acknowledged a range of growth rates ranging from 2.8 percent to 8.1 percent, largely attributed to advancements across key sectors and commitment to the implementation of policy reforms that have promoted private and public investment in some Partner States.
Looking forward, the Committee foresees continued regional growth outpacing global and Sub-Saharan Africa benchmarks, supported by sustained public investment, enhanced export performance, and pro-private sector measures. However, the region grapples with challenges, including adverse global financial conditions, geopolitical turmoil, and climate change ramifications, resulting in the amplification of challenges like high fuel and food import prices, market access costs, and currency and reserve pressures.
WCO supports the East African Community in enhancing Customs efficiency (WCO)
The World Customs Organization (WCO), in partnership with the East African Community (EAC), convened a meeting on EAC Customs Management Act and Regulations. The meeting took place from 15 to 20 April 2024, in Mombasa, Kenya, and was organised with the support of the EU-WCO HS-Africa Programme, funded by the European Union.
Legislative drafters and Customs experts from the EAC Partner States, along with the EAC Secretariat, gathered to draft amendments to the EAC Customs Management Act of 2004 and Customs Management Regulations of 2010 in preparation for the 25th Meeting of the Sectoral Council on Legal and Judicial Affairs (SCLJA) scheduled for May 2024. The purpose of these amendments is to enhance the operational effectiveness of the EAC Customs Law.
The WCO is engaging on several initiatives with the EAC to support Customs reform and efficiency, and harmonization of procedures.
We need to establish more viable African carriers to help facilitate trade (GhanaWeb)
Allen Kilavuka, the Chief Executive Officer of Kenya Airways, says there is a need to establish more viable African carriers to help facilitate trade among the various countries on the Continent. He said Kenya Airways was collaborating closely with other African Carriers to develop a viable entity to serve the continent and stand strong against any competition.
Mr Kilavuka was speaking to journalists during his recent visit to Ghana. The visit is a follow-up visit by Kenyan President, William Ruto earlier this month and officials from the Kenyan Tourism Board in February.
The CEO said, “we need to be involved more in the travel market to develop the aviation market, we recommend collaboration and cooperation with other airlines.” Mr Kilavuka said Ghana was a critical market for the Airline because it was the Company’s Hub in the West Africa Region, adding that they had developed Accra as the hub, simply because of the support from regulatory agencies as part of their operations.
6th WCO Global AEO Conference opens in Shenzhen, China (WCO)
On 8 May 2024, the 6th WCO Global AEO Conference was launched in Shenzhen, China, by the Secretary General of the World Customs Organization (WCO), Mr. Ian Saunders. This event, themed “Harnessing the Power of AEO Programmes for Inclusive and Sustainable Global Trade,” attracted over 1,200 attendees from 108 countries.
In his opening speech, Secretary General Saunders thanked the GACC for their collaboration in organizing the conference and for their relentless efforts to ensure its success. He stated that, “AEOs epitomize the synergy between Customs authorities and the business community, fostering a collaborative environment where trade efficiency and security are paramount. The significance of AEOs transcends mere operational benefits; the AEO programme embodies our shared commitment to a transparent, secure, and resilient trade ecosystem.” He stressed the importance of amplifying the benefits of AEO programmes across the full spectrum of global trade participants and underscored that the strength of the programmes is magnified when there is engagement with a diverse range of stakeholders. He added that, by integrating more MSMEs into the AEO family, Customs will enrich the tapestry of global trade.
Africa-Arab investment and trade forum: Empowering economic growth across borders (Financial Express)
The 10th Edition of the Africa-Arab Investment and Trade Forum, held from May 4-5, 2024 in Algiers, Algeria, marked a significant milestone in fostering economic collaboration and growth across continents. Under the theme “The Way to African Market,” representatives from the business and economic communities across Africa gathered to strategize and propel forward the economic agenda for the region.
In collaboration with key stakeholders such as the African Union, the African Continental Free Trade Area (AfCFTA), and the African Union Development Agency (AUDA/NEPAD), the forum brought together a diverse range of participants including government officials, business leaders, entrepreneurs, and representatives from various sectors. The forum was attended by 43 Countries from the African Union, Middle East, Europe and Asia.
Addressing the road to African markets, participants highlighted the importance of developing a continental regulatory framework to regulate technology giants and promote a digital single market under the AfCFTA. Additionally, leveraging local capabilities for technology innovation and fostering a conducive environment for small and medium enterprises (SMEs) were highlighted as key priorities.
Members discuss progress on WTO-FIFA cotton initiative, trade trends, World Cotton Day (WTO)
At the WTO’s Cotton Day on 7 May, the Cotton-4+ countries (Benin, Burkina Faso, Chad, Mali and Côte d’Ivoire), and other cotton-producing developing economies reviewed the progress made in implementing the WTO-FIFA Memorandum of Understanding on Cotton, notably the launch of the “Partenariat pour le Coton” in the margins of the 13th Ministerial Conference (MC13) in February. Participants also discussed the latest market trends in cotton trade, negotiations on cotton and plans for World Cotton Day 2024.
IFC Report Highlights Gender Gap in Trade Finance and Identifies Potential Solutions (IFC)
Specific features of trade finance amplify the difficulties faced by women-led businesses and their ability to participate in trade, according to a new report released today by IFC. The report, Banking on Women Who Trade Across Borders, examines the challenges women entrepreneurs face in accessing trade finance and provides solutions to alleviate them.
To better understand the challenges, IFC conducted interviews with women entrepreneurs and financial institutions across Africa and Latin America. The exchange of goods and services between entities in different countries often involves a complex set of transactions, multiple institutions, as well as financial intermediaries. To add to the complexities of cross-border trade, SMEs and specifically women-owned or led SMEs in emerging markets experience various levels of difficulty in getting financing from banks.
AU says $15 billion needed to increase manufacturing of mineral fertilizers in Africa (Nairametrics)
The African Union (AU) says a $15 billion private sector investment is required to guarantee an increase in local manufacturing of mineral fertilizers in Africa. The bloc explained that regional cooperation in fertilizer policy, research, and development as well as investment pooling for production capacity will facilitate cross-border trade in Africa.AU plans to increase local production of mineral fertilizers by 2033.
“A significant $15billion of private sector investment will be needed to increase the local manufacturing of mineral fertilizers.” For accelerated impact, the target is to triple the local production of organic and inorganic fertilizers by 2033. “Consolidation of financial tools like trade credit guarantees, working capital, and targeted subsidies is therefore necessary in order to minimize market distortions, lower expenses, encourage innovations and fortify input supply chains.”
This year’s [2024 African Fertilizer and Soil Health Summit] is set to evaluate the state of Africa’s soil health, while reviewing the progress made since the 2006 Abuja Declaration, which aimed to boost fertilizer use for agricultural growth. Despite multiple efforts, Africa falls short of the Abuja Declaration targets.
Despite producing around 30 million metric tons of mineral fertilizer annually, many African countries still heavily rely on imports, particularly nonphosphate-based fertilizers, leaving them vulnerable to market shocks. We all remember what transpired with the ongoing Russia/Ukraine crisis due to reliance of several Africa countries on grains and fertilizer from these two countries and the need to build food sovereignty in Africa by raising the productivity with a view to feeding 2.4 million people by 2050. We are taking up these issues in our Post Malabo process which would unveil a 10-year plan for Africa’s Agriculture.
COMESA Advocates for Policy Harmonization on Trade in Fertilizers and Soil Health Products (COMESA)
The COMESA Secretariat is currently participating in the ongoing Special Summit of the African Union on Fertilizer and Soil Health in Nairobi, Kenya. During the Summit on Tuesday, 07 May 2024, COMESA Secretary General Chileshe Kapwepwe addressed attendees, highlighting the concerning decline of soil health in many parts of Africa. She emphasized that this decline poses a threat to the resilience of agricultural systems and sustainable food production.
Kapwepwe noted that compromised soil health inhibits the soil’s ability to respond to yield-enhancing inputs such as fertilizers and improved crop varieties. This situation increases the vulnerability of smallholder farmers and rural communities to external shocks. African governments need to enact enabling policy, legal and regulatory frameworks to guide, support and incentivize the sustainable use of fertilizers and other soil resources,” she said in her statement delivered by Dr Mohamed Kadah, Assistant Secretary General in charge of Programmes.
She added that regulatory provisions for sustainable soil management should address all possible uses of fertilizers and other soil health products and their impacts on the soil and the wider ecosystem, while ensuring consistency and streamlined processes across all concerned governmental agencies.
Representing Bank Group President Dr. Akinwumi A. Adesina, Vice President for Agriculture, Human and Social Development Dr. Beth Dunford will this week lead a delegation of agriculture, agribusiness, fertilizer and partnership specialists to the Africa Fertilizer and Soil Health Summit in Nairobi. The event will explore solutions to widespread declines in farmland soil quality and build consensus on an African Fertilizer and Soil Health Action Plan. The summit will also adopt an African Union Commission initiative to enhance the health and productivity of African soils.
As part of its Feed Africa strategy to boost yields and build resilience, the African Development Bank is committed to ensuring African farmers have access to the inputs they need, including fertilizer and high-quality seeds.
Dr. Martin Fregene, the Bank’s Director for Agriculture and Agro-Industry, said, “The importance of fertilizer financing in achieving our shared aspirations cannot be overstated. The Africa Fertilizer and Soil Health Summit presents another opportunity to advance our collective goals - bridging the supply gap of fertilizers in Africa and contributing to a flourishing agricultural landscape.”
El Niño Sees African Union Insurance Agency Pay Out $60 Million (Bloomberg)
The African Union’s climate insurance agency will pay out at least $60 million to four southern African nations to help them offset the impact of a drought that’s been driven by the El Niño weather pattern, its director general said. Malawi, Zambia, Zimbabwe and Mozambique will receive payments at the end of the harvesting season in a few weeks time, Ibrahima Cheikh Diong, who leads the African Risk Capacity agency, said in an interview in Johannesburg on Tuesday.
The drought has reduced the corn crop by at least three-fifths in Zimbabwe alone, and the insurance payouts will equate to a fraction of what it needed to alleviate the impact. Still, Diong said, the money will be dispersed way before support is forthcoming from the World Bank and other sources, and provide immediate relief while governments mobilize more resources from their own budgets and from donors.
Empowering Africa’s Circular Economy Transition to Secure a Global Future (AfDB)
In the face of the triple crisis of climate change, pollution, and biodiversity loss, Africa finds itself at a pivotal moment. As it seeks to advance towards a green and sustainable future, the continent finds itself increasingly key to advancing the global climate action agenda. As a result, the urgent need to shift to a circular economy has never been more critical, and the African Development Bank, through the Africa Circular Economy Facility (ACEF) and the African Circular Economy Alliance (ACEA), is at the forefront of these efforts.
At the World Circular Economy Forum (WCEF) held in Brussels from April 15 - 18, the two Bank-supported entities emphasised Africa’s crucial role in the global shift towards circular economy and outlined strategic measures to fast-track this vital transition.
With Africa’s population projected to double to 2.5 billion by 2050 and 83 percent of its countries heavily reliant on natural resources for revenue and economic growth, the continent’s future steps could either bolster global climate efforts or set them back, depending on whether emissions profiles resemble those of countries such as Botswana or Egypt, which produce comparable levels of greenhouse gas emissions annually.
Committee on Market Access hosts second thematic session on supply chain resilience (WTO)
The Committee on Market Access held a thematic session on supply chain resilience on 6 May, building on a session held on this topic in November of last year. The session featured presentations from China, the European Union, India, the Organisation of Eastern Caribbean States (OECS), Pakistan, the United Kingdom and the United States, with speakers outlining their domestic experiences in bolstering supply chain resilience.
The panel discussed the challenges facing global supply chains. China’s presentation offered insights into how to approach supply chain resilience. The presentation highlighted China’s effort to construct a modern infrastructure and adhere to a multilateral trading regime with WTO as its cornerstone.
Manufacturers falling short on supply chain transformation – report (The Manufacturer)
The World Economic Forum, in collaboration with global consultancy Kearney, has released a new White Paper exploring the actions manufacturing leaders are taking to redesign their global value chains along key trends that are reshaping those and transforming manufacturing systems.
“From Disruption to Opportunity: Strategies for Rewiring Global Value Chains,” is based on a survey of 300 global operations executives as well as 30 consultations, revealing a playbook of proven strategies enacted by leading manufacturers to redesign and future-proof their value chains in response to global challenges. However, the results also indicate a significant gap between strategic intent and operational delivery.
Kiva Allgood, Head, Centre for Advanced Manufacturing and Supply Chains, World Economic Forum: ”Value chains are being reshaped by increasingly frequent disruptions stemming from emerging technologies, climate change and geopolitical challenges. As these disruptions grow in intensity, it is important that manufacturers prioritise redesigning and fortifying value chains to not only navigate turbulences but also design value chains that are fit for the future, delivering positive economic, social, and environmental impact.”
Renewables provided record 30% of global electricity in 2023, Ember says (Engineering News)
Growth in solar and wind power pushed renewable generation to a record 30% of global electricity production in 2023, putting a global target to triple renewable capacity by 2030 within sight, a report by think tank Ember said. Cutting fossil fuel use and emissions in the power sector is seen as vital to meeting global climate targets. More than 100 countries at the COP28 climate summit in Dubai last year agreed to triple renewable energy capacity by 2030.
Ember’s Global Electricity Review showed renewable sources provided 30.3% of global electricity last year, up from 29.4% in 2022 as growth in projects, particularly solar, increased capacity. The report predicted continued renewable growth would see fossil fuel power production fall by 2% in 2024 and push overall fossil fuel power production to less than 60% of global electricity production for the first time since at least 2000, when Ember’s data begins.
Speech: Geopolitics and its Impact on Global Trade and the Dollar (IMF)
After years of shocks—including the COVID-19 pandemic and Russia’s invasion of Ukraine—countries are reevaluating their trading partners based on economic and national security concerns. Foreign direct investment flows are also being re-directed along geopolitical lines. Some countries are reevaluating their heavy reliance on the dollar in their international transactions and reserve holdings.
All of this is not necessarily bad. Given the recent history of events, policymakers are increasingly—and justifiably—focused on building economic resilience. But if the trend continues, we could see a broad retreat from global rules of engagement and, with it, a significant reversal of the gains from economic integration.
Quick links
What to expect in Agoa’s next chapter (Business Daily)
Global trade ties resembling Cold War era; sanctions fueling gold purchase by China bloc: Gita Gopinath (The Indian Express)
Top 20 Logistics API For The Supply Chain Industry (Artelogic)
The Changing Face Of FDI (Global Finance Magazine)
The biggest economies in the world in 2024: South Africa vs China, Russia and the USA (BusinessTech)
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Patel believes industrialist policy needs continued investment to yield full potential (Engineering News)
Trade, Industry and Competition Minister Ebrahim Patel has called for rapid scaling up of infrastructure spending, among other urgent initiatives, to ensure the current industrial policy can succeed. He was speaking at the launch of the Department of Trade, Industry and Competition’s (dtic’s) newly launched Industrial Policy and Strategy Review at the newly established Tshwane Automotive Special Economic Zone (TASEZ), on May 7.
The review maps the measures and actions of government over the past five years under the Reimagined Industrial Strategy laid out by President Cyril Ramaphosa and reflects on the evolution of policy actions since the African National Congress (ANC) came to power in 1994.
“There is a need to increase levels of investment to at least R400-billion to R500-billion a year in fixing public infrastructure, drawing on private and public sector resources, with a combination of delivery mechanisms, including build-operate-transfer, public-private partnerships and public sector financing models,” Patel explained. He added that further development and scaling up of South Africa’s green industrialisation was needed, which includes the production of electric vehicles and components, green hydrogen and critical minerals processing needed in the battery value chain.
See also: South Africa remains an “attractive investment destination” – President Ramaphosa (SAnews)
Amazon launches online shopping service in South Africa (The East African)
Amazon launched its online shopping service in South Africa on Tuesday, challenging a number of online retailers dominated by Naspers’ Takealot.com. Africa’s most advanced economy is usually seen as a good entry point for companies to expand into the continent and Amazon could be doing the same, analysts have said in the past.
The launch of its service comes at a time when South Africa has seen a sharp rise in online shopping after the pandemic created an opportunity for e-commerce to finally take hold, with retailers doubling down on investments in response.Amazon.co.za will offer same-day delivery and next-day delivery with more than 3,000 pickup points. Shoppers will get free delivery on first orders, followed by free delivery for subsequent orders above 500 rand ($27.07), it said in a statement.
“Building a strong relationship with South African brands and businesses is incredibly important to us. We want Amazon.co.za to be the place where they can reach millions of customers,” said Robert Koen, managing director of Amazon Sub-Saharan Africa.
Zimbabwe aims to use FDI to develop a competitive economy by 2030 (Engineering News)
Zimbabwe held an investment conference on May 2 and 3 in South Africa wherein its officials explained that the country of 16-million people wants to use local and international investments into key sectors of its economy to further develop the country by 2030. This objective is encapsulated in its National Strategy Vision 2030 and, to attract investors, the country has entered into negotiations to settle compensation claims linked to land seizures from farmers two decades ago, as well as to settle its international debt default to tap into international finance markets.
The objective of the National Strategy Vision 2030 is to marshal collective national efforts to achieve inclusive economic growth, social transformation and, most importantly, provide a high-quality of life for all people by 2030, said Ambassador of Zimbabwe to South Africa David Hamadziripi. “The implementation of the vision offers opportunities for domestic and foreign investors to exploit, and there are significant opportunities in agriculture, mining and mineral beneficiation, manufacturing, healthcare, tourism, infrastructure and services, among others,” he said.
Shippers’ Council, Centre Partner Against Cross-border Trade Barriers (Leadership News)
The Nigerian Shippers’ Council (NSC) and the International Trade Centre (ITC), have entered into partnership in order to tackle the challenges impeding cross-border trade across the nation’s land borders. LEADERSHIP reports that trade barriers such as multiple checkpoints, language, sexual assault, bribery and corruption among others were challenges hindering cross border trade in West Africa.
However, speaking when a delegation from the ITC led by associate programme officer, Richard Eke-Metoho, paid a courtesy visit to the NSC headquarters, said the visit was part of the team’s ongoing study to identify areas for improvement in trade facilitation, particularly at border-crossing points. Eke-Metoho, lamented that female traders are fast becoming a subject of sexual harassment along the Seme-Krake trade route. “We have had instances where women moving goods along the Seme-Krake trade route have been sexually harassed by security officials stationed at different checkpoints. “Officials of government agencies stationed at these routes in the border area sometimes ask for sex in exchange for allowing goods to pass.
NOG 2024: Nigeria, Others Harnessing Gas To Boost Economy (Leadership News)
Nigeria is set to lead other African nations towards harnessing gas and other cleaner and greener energies to drive their industrialisation journey. Nigeria as well as other African countries are investing in gas infrastructure and promoting its utilisation, and by extension are addressing energy poverty and environmental challenges. Nigeria, boasting gas reserves of over 200 trillion cubic feet (TCF), recently announced plans to execute a gas strategy that will trigger the nation’s industrialisation and economic growth.
To transform the energy sector in West Africa, leveraging natural gas to drive economic growth and development is key and Gas for industrialisation contributes to increasing energy transition progress across the region, says Eyesan. Through the Decade of Gas Initiative by the Nigerian government, industry leaders have continually conveyed a collaborative approach aimed at unlocking the country’s energy resources.
To drive progress in Sub-Saharan Africa’s energy market, energy stakeholders, government officials, regulators, and key industry players are convening at NOG Energy Week 2024 to deliberate on policies aimed at meeting West Africa’s energy demand. The event, themed ‘Showcasing Opportunities. Driving Investment. Meeting Energy Demand,’ is scheduled to take place from 30 June – 4 July at the International Conference Centre (ICC), Abuja.
Cocoa for EU grown inside deforested land in top source countries, report says (The East African)
Importers of cocoa into Europe are flouting European Union laws by selling beans from deforested African land while mislabelling its origins. A new report lists cocoa merchants as fuelling the felling of trees in Liberia while disguising the beans as originating from neighbouring Cote d’Ivoire. Liberia, one of the countries in Africa still recovering from civil war, has struggled to replant trees, most of them cut down during the conflict two decades ago. And, while agribusiness has been encouraged to tackle both poverty and land rehabilitation, cutting down trees for cocoa farming violates EU laws on environment and business.
Of late, the EU has been putting clauses in various trading agreements to focus on conservation for all businesses directly engaging with the European markets. Yet the report by an Ivorian NGO known by its French acronym IDEF is calling on EU officials and governments of affected African nations to work on cocoa certification schemes that prevent illegal exploitation of African farmers, one of the largest bloc of cocoa producers in the world.
Tunisia develops roadmap for transition to green economy (TV BRICS)
The textile industry in Tunisia has recently produced a plan that describes the actions required to guarantee a smooth shift to a green economy. This was reported by Tunis Afrique Presse, a partner of TV BRICS. Technical committees set up to oversee the “Green Transition of Tunisian Textiles” project – a ground-breaking programme spearheaded by the Tunisian Textile and Clothing Federation (FTTH) with the goal of advancing the ecological sustainability of the country’s textile sector – developed the roadmap.
By 2030, the programme hopes to recycle 90 per cent of wastewater, use 100 per sent renewable electricity, cut corporate carbon dioxide emissions by 30 per cent, reduce textile waste by 50 per cent, and certify 100 textile enterprises. The roadmap was created after being signed on May 2 to facilitate the transition of the Tunisian textile industry to year-round, environmentally friendly operations. It lays out parameters for the sector’s shift to a green economy.
2024 Article IV Consultation with Guinea (IMF)
Guinea’s growth is expected to decelerate to 4.1 percent in 2024 amid fuel shortages and rebound to 5.6 percent in 2025, sustained by a resilient mining sector. Policies for 2024 aim at mitigating the impacts of the fuel explosion while minimizing deviations from medium-term growth and economic development objectives. In the medium term, mobilizing domestic revenues, especially from the mining sector, modernizing tax administration, improving public finance management and investment efficiency, as well as increasing spending on education, health, and social protection, while anchoring spending on available resources, will help boost productivity and reduce poverty.
Guinea remains at moderate risk of debt distress, with some space to absorb shocks. The implementation of structural reforms will help manage Guinea’s vulnerability to domestic and external shocks and achieve sustained and inclusive growth. In this context, there is need to ensure that the Simandou iron ore project delivers the expected benefits for the Guinean economy, as well as to adapt to and mitigate climate change, address gender disparities, and to strengthen governance and transparency by fighting corruption and improving the anti-money laundering and counter-terrorism financing regime (AML/CFT). The implementation of the 2023 safeguards assessment recommendations will also be critical.
“Today, Africa has $640 billion in outstanding debt and pays nearly $70 billion in interest every year. It would only be fair for us to have a financing mechanism that treats us on an equal footing”. Kenyan President William Ruto’s call at the African Union’s 5th biannual coordination meeting in Nairobi in July 2023, was unequivocal: the global financial architecture must be reformed so that Africa is no longer the world’s poor relation.
For President Ruto, courageous decisions are needed to keep Africa’s countries’ debt burdens from being too onerous. The time has now come for this. The African Development Bank Group, Africa’s leading development finance institution, will make this issue a top priority at its annual meetings -- “Africa’s Transformation, the African Development Bank Group and the Reform of the Global Financial Architecture.” To be held in Nairobi from 27-31 May 2024, the meetings will provide a platform for Africa to take up the challenge of reforming global financing institutions as outlined by President Ruto and other African leaders, and to propose a way forward.
In a concerted effort to bolster synergies and ensure a seamless and effective implementation of competition policies, the commissions acted upon the mandates issued by the leaders of both Commissions during the pivotal 18th ECOWAS-WAEMU interinstitutional meeting held on 8 March 2019, in Abidjan, Côte d’Ivoire. It was within this framework that the ECOWAS Regional Competition Authority and the WAEMU Competition Directorate devised a comprehensive cooperation protocol, subsequently submitted for formal ratification.
This foundational agreement was complemented by a meticulously crafted action plan, which addressed key areas such as the harmonization of legislation and procedural frameworks, enhancement of institutional capacities, and fostering of information exchange and strategic partnerships. The action plan was refined with precision during intensive sessions from 2 to 4 May 2024 at the ECOWAS Residential Representation in Abidjan, and thereafter advanced for evaluation and endorsement by the Commissioners of the relevant departments.
Climate change could derail EAC economies, central bank bosses warn (The Standard)
Central banks from the East African Community (EAC) bloc are raising the alarm on climate change and its impact on the regional economies. They see it as a major threat to the region’s economies and are now calling for a stronger response from respective governments. Led by Kenya’s Central Bank (CBK) Governor Kamau Thugge, the banking regulators warned in a statement that the negative impacts of climate change are already evident. They emphasised that inaction would only exacerbate the damage, harming people’s well-being and driving up future costs.
The governors issued the dire warning in a communique seen by The Standard after a special meeting of the East African Community (EAC) Monetary Affairs Committee (MAC) held last week. While the region’s economic outlook appears promising, Kenya and other EAC countries remain vulnerable to climate change alongside other global challenges, the central bankers warned.
Nigeria needs more public-private partnership for digital economy, says U.S. (The Guardian Nigeria)
United States Government, yesterday, said that Nigeria needed more international Public-Private Partnership to unleash the full potential of its digital economy. The U.S. Consul-General to Nigeria, Will Stevens, said this during a tech policy speech and insightful fireside chat at the Lagos Business School, Lekki, Lagos. The theme of the event was “Unleashing Potential: Thriving in the Digital Age.” He said that without partnerships, it would be hard to unleash the talents that could boost the country’s economy.
“We need African solutions to global problems. We need to be harnessing the talents, solutions and an ingenuity that’s here on this continent to address some of the huge problems that are facing us around the world,” he said. On how the country has progressed in tech, Stevens said Nigeria was already thriving in the digital age, noting that Information and Communication Technology currently accounted for 22 per cent of its Gross Domestic Product (GDP). “Nigeria is moving very fast as ICT accounts for three times more than oil and gas, which the country supposedly has in abundance.”
Nigeria’s Digital Economy Gets Boost with Partnership Between BoI, AfDB, NITDA (Arise News)
The Bank of Industry (BoI), the African Development Bank (AfDB) and the National Information Technology Development Agency (NITDA) have partnered to drive digital literacy in Nigeria. According to a statement, the Managing Director, BoI, Olasupo Olusi, at the bank’s Investment in Digital and Creative Enterprises (iDICE) stakeholders’ forum in Lagos, explained that with a youthful growing population and increasing urbanisation, activities in the digital and creative sector have continued to increase, maintaining that it was imperative to further drive productivity in the Nigerian economy.
According to him, the creative and digital economy was central to the economic strategy of President Bola Ahmed Tinubu’s transformation plan, as the digital and creative sector plays a key role in driving employment creation, reducing poverty and inequality in the polity. “With such recognition, there is a need for us to reposition our focus on ways to improve the activities and output from the digital and creative economic space. Such repositioning involves the introduction of a transformative initiative as the iDICE programme,” he said.
India-Ghana trade talks focus on textiles & digital economy (Fibre2Fashion)
The 4th session of the India-Ghana Joint Trade Committee (JTC) was held in Accra recently, spotlighting significant opportunities in textiles, digital economy, renewable energy, and other sectors. The meeting, co-chaired by Amardeep Singh Bhatia, additional secretary, department of commerce, Ministry of Commerce and Industry of India, and Michael Okyere-Baafi, Deputy Minister for Trade and Industry of Ghana, took place from May 2nd to 3rd, 2024.
During the discussions, both nations emphasised the potential for enhanced cooperation in textiles and garments, alongside the digital infrastructure, as critical areas for bilateral trade and investments. Trade discussions also explored benefits under the African Continental Free Trade Agreement (AfCFTA). Additionally, discussions on the possibilities of signing a memorandum of understanding (MoU) on digital transformation solutions and a local currency settlement system were explored, reflecting the commitment to deepening digital economic ties, the Ministry of Commerce and Industry said in a press release.
China-Africa Digital Cooperation: A Step Towards Mutual Development (Africa24.it)
At the China-Africa Internet Development and Cooperation Forum held in Xiamen, officials and representatives from China and various African countries reiterated their commitment to working together for digital cooperation. Key topics included cooperation in the digital economy, technology, cyberspace security, and online media. Both sides emphasized the mutual benefits of collaboration, sharing development opportunities, and enhancing online security to achieve win-win results.
The China-Africa Digital Cooperation Forum not only underscores the expanding partnership between the regions but also highlights the commitment to mutual development, strengthening economic ties, and fostering a shared future. This collaboration is essential in shaping the global digital landscape and advancing economic growth and stability in both China and Africa.
Owalo Urges Digital Sovereignty & Data Governance In Africa (CIO Africa)
Eliud Owalo, the Cabinet Secretary Ministry of Information, Communications and Digital Economy has called for digital sovereignty and data governance in Africa as he officially opened the Network of African Data Protection Authorities (NADPA-RAPDP) Annual General Meeting (AGM) and two-day Conference at Windsor Golf Hotel and Country Club. The event, which brings together data protection authorities across Africa and data protection stakeholders, is aimed at formulating strategies to promote Regional Data Governance for Digital Transformation.
In his remarks, the CS acknowledged the unique challenges and opportunities faced by African countries in asserting control over their digital future, while navigating the influences of global competing interests and ensuring that partnerships contribute to sustainable growth and job creation. “I encourage you to explore the current state of digital sovereignty and data governance in Africa and discuss strategies for shaping a prosperous and self-determined digital landscape,” he said.
AI Development Holds Key to Economic Growth, Social Progress says Expert (This Day Live)
In an ongoing mission to combat poverty and achieve the UN Sustainable Development Goals, Artificial Intelligence (AI) emerges as a potent yet underutilized tool says Tomi Alagbe, a renowned software developer. Alagbe emphasizes the need for concerted efforts, particularly in developing countries, to harness AI’s potential and bridge existing inequality gaps. He added that AI presents a unique opportunity for Nigeria and Africa at large to address pressing development challenges and drive innovation across various sectors.
Highlighting Nigeria’s demographic trends and economic landscape, he explains AI’s capacity to introduce transformative technological solutions. “The establishment of an ethical framework is imperative to ensure the sustainable and inclusive development and deployment of AI technologies,” Alagbe affirms. The tech expert says he envisions AI’s impact as far-reaching, with the potential to uplift millions by providing scalable solutions that enhance livelihoods.
Experts Advocate For Inclusivity And Sustainability In Africa’s Digital Marketplace Poised To Reach $72 Billion By 2026 (Forbes Africa)
According to the Beyond Borders 2024 report, a digital commerce study, the African continent’s digital economy is poised to reach $72 billion by 2026. However, amidst this growth, experts note that there are challenges that must be addressed to ensure inclusivity and sustainability.
Research and advisory firm Caribou Digital, in collaboration with the Mastercard Foundation and the Bill & Melinda Gates Foundation, has undertaken a research initiative, The Platform Livelihoods Project, which delves into the workings of Africa’s digital workplace, shedding light on the experiences of millions who rely on digital platforms for their livelihoods. One revelation from the research is the reliance of African farmers on digital marketplaces. For instance, 27% of Kenyan farmers utilize platforms like Meta (Facebook) to sell produce and exchange vital information.
Unlocking the potential of Africa’s soils for a food secure continent (AU)
Africa is the only continent endowed with natural ingredients that can easily be used to greatly expand agricultural production. Africa has 60 percent of the world’s available arable land, the largest share globally, and suitable for agricultural production expansion, and abundant untapped water resources. Agriculture is the source of livelihood for 70 percent of the population on the continent. The African Union Comprehensive Africa Agriculture Development Program (CAADP) adopted in 2003, is Africa’s policy framework for agricultural transformation, wealth creation, food security and nutrition, economic growth and prosperity for all.
The convening of the Africa Fertilizer and Soil Health Summit is therefore timely for a comprehensive review of the state of Africa’s soil health to recalibrate the strategies being deployed to boost the productivity of soils towards higher and sustainable gains in crop yields, economic growth, and the overall well-being of the African citizenry.
The Summit hosted in Nairobi, Kenya from the 7th-9th May 2024, is held under the theme “Listen to the Land” which seeks to evaluate the state of Africa’s soil health, while reviewing the progress made since previous commitments by African leaders to boost fertilizer use for agricultural growth in Africa. The theme is a Call to Action for stakeholders to pay attention to the needs of the land in terms of soil nutrients, soil moisture, essential minerals, soil organisms, impact of climate change, and consider adopting regenerative practices, policies and approaches that will improve the long term value of land as a critical asset for farmers. The goal is to unlock the potential of Africa feeding Africa, and Africa feeding the world.
Quick links
Empowering women leaders for gender equality in the digital economy (UNCTAD)
How do Taxes Drive the Sustainable Development Goals? (Inter Press Service)
World Migration Report 2024 Reveals Latest Global Trends and Challenges in Human Mobility (IOM)
Achieving sustainable forest management remains UN forum’s goal (UN News)
Recipe for livable planet (World Bank)
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Shell confirms plan to divest from SA downstream operations (Daily Maverick)
“Shell has decided to reshape the Downstream portfolio and intends to divest our shareholding in Shell Downstream South Africa (SDSA),” the oil giant said in a statement in response to Daily Maverick’s queries. It said this decision was taken in the wake of a comprehensive review of “… the Downstream and Renewables businesses across all regions and markets in line with Shell’s focus on performance, discipline, and simplification”.
This confirms weekend reports in City Press and Sunday Times that Shell planned to exit South Africa. Shell provided no comment on the reports that it was also locked in a row with its BEE partner Thebe Investments over the value of the latter’s stake. In its latest energy transition strategy report in March, Shell said it planned to divest from 1,000 service stations in 2024 and 2025 as it pivots to charging options for the electric vehicle market. It seems that South Africa’s service stations fit that bill.
The move will mark the end of an era as Shell has been a fixture of South Africa’s energy landscape for 120 years — a presence that saw it targeted by anti-apartheid campaigners in the 1980s.
Climate commission model points to the growth potential of green industrialisation (Engineering News)
The initial direct cost of placing South Africa on an energy transition pathway over the coming five years in line with its decarbonisation targets is calculated at a hefty R1.5-trillion in the Just Energy Transition Investment Plan (JET-IP). Less visible, however, are the socioeconomic costs associated with failing to pursue the Nationally Determined Contribution (NDC) goal of reducing carbon dioxide-equivalent (CO2-eq) emissions to the lower end of the NDC range of between 420-million and 350-million CO2-eq tons in 2030.
The lower target is said to be compatible with South Africa’s fair contribution to helping to cap the global rise in temperatures to 1.5°C above pre-industrial levels. To assess these direct and indirect costs, the Presidential Climate Commission (PCC) and Cambridge Econometrics have applied Cambridge Econometrics’ E3ME model in a bid to understand the trade impacts of future policy choices and the economic impacts associated with the environmental damage caused by higher temperatures.
Why poultry farmers are ill at ease with Kenya-US trade negotiations (The East African)
Kenya’s poultry farmers say the country risks becoming a dumping ground for US poultry and dairy products, as Nairobi and Washington work on a deal. Last week, poultry farmers raised fears that the US-Kenya Strategic Trade and Investments Partnership (Stip) agreement would allow cheap poultry imports; likely to result in the loss of Ksh172 billion ($1.3 billion) annually if implemented. According to the Poultry Breeders Association of Kenya, the loss would come from a projected 75 percent reduction in demand for local poultry products.
“It’s not just the poultry producers who would suffer, but also the numerous supporting industries that rely on a thriving Kenyan poultry sector: From maize farmers to feed suppliers to transportation services, the ripple effect would be felt far and wide, potentially destabilising the delicate balance of the entire agricultural ecosystem.” said Timothy Mulwa, the association’s chairperson.
But Kenya’s Trade Cabinet Secretary (CS) Rebeca Miano has sought to allay the fears, saying that the Stip negotiations are not on market access but to lay a level playing field for trade between the two countries. “The negotiations are about creating an investment and trade environment. It has nothing to do with products, market access or any value chain. And I don’t know where this narrative has come from...We are just raising standards of what the US would expect and that is the first phase of Stip,” Ms Miano told The EastAfrican.
Kenyans Urged to Invest in Women for Sustainable Development, Healthy Communities (Tuko.co.ke)
There is often a prevailing notion that empowering women is merely about giving them a seat at the table or a voice to speak. But true empowerment goes far beyond that—it is about providing women with the tools and opportunities to shape their own futures. Financial empowerment is a driver that enables one to experience a better quality of life, thrive, and grow healthy communities.
A common barrier faced by women, especially in developing countries like Kenya, is the lack of access to capital to finance businesses. Whereas financial access between men and women has narrowed from 8.5% in 2016 to 4.2% in 2021, as per data from the Financial Sector Deepening Kenya (FSD Kenya), there is still a long way to go in closing the gender gap.
Without the financial means to start and grow businesses, women remain constrained in their ability to be economically empowered. This not only limits their ability to realise their potential but also reduces their agency to determine their quality of life.
The disparity in access also extends beyond Kenya to the rest of the continent. According to the International Monetary Fund (IMF), only 37% of women in Sub-Saharan Africa have access to bank accounts, compared to 48% of men - a gap that has widened over the past years.
In spite of political tensions, DRC-Rwanda trade goes on (The East African)
Cross-border trade between the Democratic Republic of Congo and Rwanda appears to defy their open conflict, which has lately shown signs of escalating. Residents on both sides of the border have refused to be tied down by the political tensions, trading freely despite some border restrictions. Congolese government spokesman Patrick Muyaya said the border between Goma in the DRC and Rubavu district in Rwanda is one of the busiest in Africa for commercial traffic.
According to the World Bank, “Petite Barrière is the busiest pedestrian crossing point in the Great Lakes region, with more than 50,000 people crossing every day.” When the crisis between the DRC and Rwanda came to a head in 2022, the Congolese authorities did not barricade the borders between the two countries, instead moving the border closure to 3pm from 5pm. Business has remained brisk.
Cross-border trade is encouraged beyond the countries of the region and there is no official policy in Kigali or Kinshasa forbidding civilian interactions for trade.
Kinshasa moves to curb trade in ‘blood minerals’ (The East African)
The Democratic Republic of the Congo (DRC) has protested alleged fuelling of conflict on its territory by multinationals buying “blood minerals” to fuel the energy and digital transformations. Kinshasa has accused United States smartphone giant- Apple of paying for minerals without critically looking at the suppliers.
The accusation is not the first by Kinshasa levelled against outsiders for fuelling the war in eastern DRC, but this time round, the Central African nation has issued a formal warning to Apple for “using minerals from national mines that are illegally exploited and fuelling the war.”
Kinshasa was banking on details contained in a new report by the expert members of the strategic coordination of the International Justice Taskforce. Their report, Blood Minerals-Le blanchiment des 3T de la RDC par le Rwanda et des entités privies, highlights the serious human rights violations suffered by people living in the mining regions of the east of the country.
Shippers’ Council, ITC to tackle cross-border trade barriers (The Sun Nigeria)
The Nigerian Shippers’ Council (NSC) has entered into partnership with the International Trade Center (ITC) to tackle the challenges impeding cross-border trade especially multiple checkpoints. This commitment was made yesterday when a delegation from the ITC led by Associate Programme Officer, Richard Eke-Metoho, paid a courtesy visit to the NSC headquarters on Friday.
ITC is a co-implementer under the ECOWAS Agricultural Trade Programme which aims to improve intra-regional agricultural trade at border- crossing points. Speaking during the meeting at the Council’s headquarters, Associate Programme Officer, ITC, Richard Eke-Metoho, said the visit was part of the team’s ongoing study to identify areas for improvement in trade facilitation, particularly at border-crossing points. However, he lamented that female traders are fast becoming a subject of sexual harassment along the Seme-Krake trade route.
Unified Payments gateway licence: What it means for digital economy (Businessday NG)
Nigeria’s digital economy will get a facelift following the Central Bank of Nigeria’s move to award a Payment Terminal Service Aggregator (PTSA) licence to Unified Payments, the second such licence to be issued after 13 years. The Nigeria Interbank Settlement System PLC (NIBBS) had been the sole licensee in the country since it was issued the first PTSA in 2011.
The second licence to Unified payments resolves industry concerns about channelling all transactions through a single aggregator - NIBBS, as has been the case for some years. NIBBS played a crucial role in the rise of digital payments, enabling instant interbank transfers, Point of Sale (PoS) transactions, and the growth of the fintech sector.
This is evident in the growth of electronic payments in the country. In 2021, the value of digital payments through the NIBSS was N278.38 trillion, up 70.90 percent from N162.89 trillion in 2020. This grew to N395.47 trillion and surged to N611.06 trillion in 2023. However, it has limitations, evident during a recent push for a cashless economy by the CBN. The strain on the single gateway led to transfer delays and highlighted the limitations of Nigeria’s payment infrastructure.
World Bank Provides $68 Million Through The Gambia GIRAV Project to Increase Smart Agricultural Productivity (World Bank)
The World Bank’s Board of Executive Directors has approved a $68.00 million financing for The Gambia Inclusive and Resilient Agricultural Value Chain Development (GIRAV Project), of which US$10.00 million equivalent is from the International Development Association Crisis Response Window - Early Response Financing.
The project will address food insecurity by scaling-up implementation of impactful activities such as: improving water availability and land tenure to foster climate resilient agriculture and supporting improved water and sanitation in the targeted areas.
“This funding boost for GIRAV will address various critical needs: replenishing diverted resources, tackling food crises with climate-smart solutions, enhancing rural infrastructure for resilience, and advancing land administration, particularly for female farmers,” said Aifa Fatimata Ndoye Niane, Senior Agriculture Economist and Project Task Team Leader.
AU invites Nigeria and South Africa to bid for AFRIMAs hosting rights (Music In Africa)
The African Union Commission (AUC) has extended official invitations to Nigeria and South Africa to bid for hosting rights for the next two editions of the All Africa Music Awards (AFRIMAs). The development was conveyed in a letter signed by the AUC’s commissioner for health, humanitarian affairs, and social development, Minata Samate Cessouma, with the organisation stressing alignment with its policies for the strategic transformation of Africa through social integration. Described by the AU as a “global platform for celebrating and developing Africa’s diverse musical talents and cultural heritage,” the scheme has held eight editions, with Nigeria hosting five of them while South Africa has yet to host an event.
300 exhibitors to secure deals at West Africa Trade Show (The Nation Newspaper)
Over 300 exhibitors in the food retailing , hospitality and supply value chain from 40 countries will be exploring opportunities to secure business deals for their products as the Food & Beverage West Africa Trade Show gets underway in Lagos next month. Participants from Italy, Indonesia, Thailand, Turkey, India, USA, China, Egypt, Dubai, Pakistan, and Russia, will also utilise the programme to engage business activities with buyers/importers/distributors from across the region.
the West Africa Trade Show will also provide a window for businesses across the world to access key decision makers across the continent on how to grow the food and beverage value chain, especially how to grow the export of coffee, tea, sauces, spices, condiments, meat and poultry, rice, machinery, packaging and equipment in an efforts to contribute significantly to the gross domestic product (GDP).
EA transporters fault costs, logistical barriers on Northern, Central Corridor (The East African)
Cargo transit costs and logistical issues on the central and northern corridors continue to hamper cross-border trade among East African Community (EAC) member States. This was one of the main takeaways from an East African Business Council (EABC) webinar held last week on both corridors, which connect landlocked EAC countries to the ports of Dar es Salaam and Mombasa.
Participants pointed to lethargy in implementing initiatives such as the One-Stop Border Posts (OSBPs) under the Single Custom Territory (SCT).
Jonathan Sessanga, representing the EAC secretariat, blamed “interventions” by partner States for creating new non-tariff barriers besides sub-standard infrastructure at some border points, that cause delays and additional costs for traders.
The Shippers Council of Eastern Africa (SCEA) and Northern Corridor Transit and Transport Coordination Authority (NCTTCA) cited high road transport rates and disparities in levying road user charges across the EAC partner States among major issues to be addressed. According to Pauline Ukwalu of the SCEA, road transport rates from Mombasa to Kampala (Uganda) in 2023 stood at $1.97 per container but were lower from Kampala to Mombasa at $1.36. The rates for Kigali (Rwanda), Juba (South Sudan) and Goma (Democratic Republic of Congo) were $2.50, $2.60 and $3 respectively.
Four EAC partners join the Kenya-Uganda SGR project (The East African)
Four East African Community member states this week joined the Kenya and Uganda joint project to develop a modern railway on the Northern Corridor. But lack of funds continues to haunt the joint standard gauge railway (SGR), which terminated in Naivasha, in Kenya’s Central Rift region. On Friday, Rwanda, Burundi, Democratic Republic of Congo and South Sudan joined SGR Cluster Joint Ministerial Committee and committed to engage development partners in seeking funding for the railway to ease movement of goods on the Northern Corridor.
During the meeting in Mombasa, the ministers in charge of infrastructure acknowledged the fundraising challenges the project has faced in the past five years.
The two governments agreed on the search for the money, which could include loans or an arrangement for the public-private partnerships to extend railway from Naivasha to Kampala before extending to Rwanda and South Sudan.
See also: Is the proposed East African single currency a pipe dream? (The New Times)
AfCFTA: S’East shippers tasked on opportunities in non-oil exports (The Sun Nigeria)
Exporters of locally manufactured goods and agricultural produce in the South East have been advised not to cut corners, but to do proper documentation of their products to attract appropriate and adequate payments in return.
They were reminded of the guided trade initiatives enunciated by the ratification of the African Continental Free Trade Area (AfCFTA) by 53 of the 54 member countries in the African Union (AU), to enable cross border trade without hitch; a development that is aimed at boosting production, buying and selling essential goods and services within the continent.
The charge was contained in a paper on, “AfCFTA Market Opportunities: Prospects and Challenges,” presented by the Head, Development Finance, Central Bank of Nigeria (CBN), Umuahia, Mr Kelechi Adiele, during a one-day sensitisation seminar organised by the Aba zonal office of the Nigerian Shippers Council (NSC), South East Zone.
AfCFTA: Competitive capacity, key to market access — Manufacturers (Vanguard)
For Nigeria to reap maximum benefits from the African Continental Free Trade Area (AfCFTA) agreement, the Manufacturers Association of Nigeria (MAN) has identified the ability of local manufacturers to compete around the continent as key to gaining market access under the deal. Though AfCFTA has not fully taken off, the Guided Trade Initiative (GTI) under the trade deal has commenced with the participation of a few countries, excluding Nigeria that is just about to sign off for the guided trade.
Nigerian manufacturers have consistently lamented over various factors that have constrained the competitiveness of the sector, warning that without tackling them the country will be at a disadvantage under the continental trade deal. Director-General of MAN, Mr. Segun Ajayi-Kadir, said that the manufacturing sector has not had the microeconomic and infrastructure support needed for growth and the ability to compete.
AfCFTA, ZenPay to Develop Portal for Seamless Intra-African Trade (Business Post Nigeria)
A portal to facilitate intra-African trade is to be developed by the African Continental Free Trade Area (AfCFTA) Secretariat in collaboration with Zenpay Limited, a wholly-owned subsidiary of Zenith Bank Plc.
The digital platform, according to a statement, will be known as SMARTAfCFTA, and will streamline and unlock vast opportunities for trade across the African continent, providing information like trade indicators, market trends, custom tariffs, trade agreements, Rules of Origin, market access requirements of relevant jurisdictions, export potentials, export diversification indicators and contact details of business partners in target markets and other trade-related information about Africa.
Speaking at the signing of the agreement last Friday in Lagos, the Chairman of ZenPay, Mr Ebenezer Onyeagwu, emphasised that, “This initiative is not driven by profit but by the need to support the AfCFTA “It aims to create a unified African market, enhancing economic integration and standardising customs and practices. As we advance this agenda, we expect to see significant growth and improvement in intra-Africa trade.”
Unlocking Africa’s $1 Trillion Food Economy: The Role Of Global Aid And Sustainable Technology (Africa.com)
Global aid is crucial to realizing Africa’s $1 trillion food economy. It can help promote sustainable growth by targeting obstacles, enhancing resilience and unleashing the continent’s agricultural capabilities. Global aid is also vital for nurturing trade and economic integration, which are fundamental to Africa’s agricultural development agenda. The African Development Bank forecasts a potential surge in the food and agriculture market from $280 billion annually to $1 trillion by 2030.
However, to achieve that, this aid must be effectively and efficiently directed to tackle the root causes of food insecurity on the continent: infrastructure, logistical challenges and lack of access to finance and digital technology. Therefore, strategic collaboration and investments are needed to prioritize Africa’s agricultural transformation and sustainable development objectives.
Africa-US Business Summit: Chakwera dines with US investors, woos them to invest in Malawi (Malawi Nyasa Times)
Malawi leader Dr Lazarus McCarthy Chakwera, on Sunday met United States of America (USA) based investors at the Malawi-Texas Roundtable in order for him to outline investment opportunities Malawi is having poised under Agriculture, Tourism and Mining (ATM).
During the meeting the President underlined the urgent need for the country to break free from the shackles of poverty through strategic investments. Speaking during the Malawi-Texas Business Roundtable on Sunday, President Chakwera emphasized the significance of attracting investors who prioritise sustainable development over exploitation.
Touting Malawi’s potential, President Chakwera welcomed a diverse group of business leaders keen on exploring investment opportunities in priority sectors to Malawi’s growth Malawi’s dubbed ATM Strategy (Agriculture, Tourism and Mining). “I have convened this Business Roundtable to provide a platform for you to present your companies and portfolios to my officials,” he said while emphasising his administration’s commitment to facilitating a conducive environment for investment.
Under the ATM strategy, Malawi prioritises cooperation and investment in increasing productivity through commercialisation and digitisation, enhancing value through industrialisation and promoting sustainability through climate-smart business practices.
See also:
US-Africa trade deal turns 25 next year: Agoa’s winners, losers and what should come next (The Conversation)
How the AGOA Reauthorization Process Could Help Diversify U.S. Critical Mineral Supplies (Carnegie Endowment for International Pea)
Global megatrends and the quest for poverty eradication (UNCTAD)
Global megatrends such as income inequality, climate change, demographic shifts, technological progress, and urbanisation are shaping the future of societies. Yet, their quantitative impacts on development are neither well understood nor established. This paper examines the individual and combined effects of these global forces on poverty, using both cross-section and panel estimation techniques on a global dataset covering the period from 1995 to 2019.
Regarding the direct effects, it finds that inequality, urbanization, and technology are the megatrends with a robust impact on poverty in both the long and medium terms. Demographic shifts and climate change have some impact on poverty, but the results depend on the samples and specifications considered. Furthermore, the paper finds that in addition to their direct effects, technology, urbanization, and demographic shifts affect poverty through their interactions with income inequality.
And now, BRICS eyes creation of a central bank for currency issue (domain-b.com)
China, with backing from Russia and South Africa, is planning an onslaught on the mighty dollar by introducing a new currency, to be issued by a proposed BRICS central bank that would combine the strengths of the respective currencies of the five countries in the economic forum.
The development follows an earlier proposal by Russia and China for setting up of an independent BRICS payment system using digital and blockchain technologies, as part of a move to end the dominance of US dollar in global payment system.
Reports citing sources at the BRICS-sponsored New Development Bank (NDB) said the forum is now looking at the prospects of creating a central bank for BRICS that would eventually be issuing a common currency for member countries of the forum. Chinese state-backed newspaper Global Times in a report on Saturday quoted South African Ambassador to China Siyabonga Cyprian Cwele as saying that member countries of BRICS will be meeting this month to discuss the proposal in detail.
This Global Stocktake objective is to provide a preliminary stocktake of how G20 members are advancing the bioeconomy as a basis for (a) facilitating members’ learning and engagement, (b) enabling G20 members’ action and (c) increasing cooperation in areas of common interest.
The Global Stocktake is a response to the highly significant growth potential of the bioeconomy. In its report ‘A Status of the Global Bioeconomy’, the World Bioeconomy Forum estimates the total value of the bioeconomy from various announcements around the world to be of the order of US$4 trillion. The Forum predicts considerable growth in the global bioeconomy. For example, China assesses that its bioeconomy will be valued at US$3.3 trillion by the end of 2025, whereas India is registering double-digit growth rates in recent years. The World Bioeconomy Forum concludes that “…its value will rise to US$30 trillion by 2050, which is a third of the global economic value” (World Bioeconomy Forum, 2022).
This Global Stocktake aims to represent an initial framing exercise by the G20 Initiative on Bioeconomy for advancing a bioeconomy that is equitable, regenerative of biodiversity, supportive of climate action and an enabler of the sustainable transition of the real economy.
Quick links
Cameroon: the majestic Obala interchange eases outbound traffic flows to the west of Yaoundé (AfDB)
Driving economic growth through technology (Economy Middle East)
How remittances are worth more than all development funding combined 107554 (Devex)
Intergovernmental Group of Experts on E-commerce and the Digital Economy, seventh session (UNCTAD)
OECD Ministerial Council Statement and Outcomes (OECD)
Cambodia formally accepts Agreement on Fisheries Subsidies (WTO)
Related News
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Lower income consumers are being priced out of the car market (Engineering News)
TransUnion Africa CEO Lee Naik says a tough economic environment characterised by cost-of-living challenges, high fuel costs and currency depreciations have resulted in a notable decline in vehicle sales and financing in South Africa. However, while this contraction is expected to persist, manufacturers and dealerships are stepping up their efforts to help consumers enter, or re-enter the auto market, he notes.
TransUnion this week released its Vehicle Pricing Index (VPI) for the fourth quarter of 2023. Actions that vehicle manufacturers and dealerships are taking to egg on sales numbers include discount structures, incentives, trade assistance mechanisms, interest rate reductions on loans, and a focus on monthly payments rather than gross prices. “These efforts show innovation in an otherwise stagnant sector,” says Naik.
Enhanced regulation, law enforcement needed to combat scrap metal theft (Engineering News)
Enhanced regulation and enforcement are needed to address the challenges of scrap metal theft in South Africa and potentially lift the ban on scrap metal exports, research and advisory firm Birguid analyst Noquele Dube says. She explains that the scrap metal industry contributes R15-billion to South Africa’s gross domestic product and employs about 350 000 people, according to the Metals Recycling Association of South Africa (MRA).
More than 60% of scrap metal revenue is generated from the mining, manufacturing and construction industries. Scrap metal is the combination of waste metal, metallic material and any product that contains metal that can be recycled from previous consumption or product manufacturing. Valuable scrap metals in South Africa include copper, aluminium, steel and lead owing to their high demand, limited availability and economic value.
In 2023, South Africa’s scrap metal exports totalled R5.2-billion, with manganese at R2-billion, iron and steel at R1.6-billion and aluminium at R1.1-billion accounting for 80% of the exports, Dube says. Leading markets for these exports included India, at R1.6-billion; Japan, at R1.1-billion; the US, at R707-million; and China, at R322-million, she says.
Kenya monopoly of Uganda oil imports to end (The East African)
Uganda will start importing fuel directly from next month in a deal with Vitol Bahrain which the country hopes will supply cheap petroleum products. Energy and Mineral Resources Minister, Ruth Nankabirwa, told oil marketers in a circular that Uganda National Oil Company’s (Unoc) maiden cargo of super petrol and diesel would arrive between June 18 and 26.
Uganda has negotiated prices with Vitol Bahrain in the hope of lowering pump prices below the current rates that are largely determined by the deal that Kenya signed with three Gulf oil majors. The start of Unoc’s direct fuel imports marks an end to decades of relying on Kenya for the critical commodity, either through the Open Tender System (OTS) or the current government-backed deal.
Trade Facilitation: Customs Launches ‘Advance Ruling’ System (PRNigeria News)
The Nigeria Customs Service (NCS), in conjunction with the Nigerian Energy Support Programme (NESP), has launched an auspicious scheme aimed at enhancing trade facilitation. The scheme, which is tagged: Advanced Ruling, will also help to create a more transparent business environment for the Service’s stakeholders.
Speaking at the project’s launching on Thursday, Comptroller-General of Customs Bashir Adewale Adeniyi described ‘Advanced Ruling’ as a critical mechanism that allows traders to obtain binding decisions from Customs administrations on the classification, origin, and valuation of goods before importation. Appreciating the stakeholders and partners for gracing the event, CGC Adeniyi emphasised that the launched project will also serve as a tool for reducing compliance costs and fostering a conducive business environment for traders.
Nigeria Accedes to the Establishment Agreement for Afreximbank’s Fund for Export Development in Africa (FEDA) (Afreximbank)
The Federal Republic of Nigeria has acceded to the Establishment Agreement for the Fund for Export Development in Africa (FEDA), the development impact investment platform of the African Export-Import Bank (Afreximbank). Nigeria joins the ranks of countries acceding to the Establishment Agreement of FEDA, becoming the 16th nation to do so. This underscores the increasing backing the Fund enjoys among African nations.
This announcement comes three decades following Afreximbank’s establishment in Nigeria, a key milestone that boldly demonstrates Nigeria’s continued commitment to supporting Afreximbank and FEDA’s missions. FEDA sees new memberships as critical to broadening its scope of interventions and its mission of delivering long-term capital to African economies, with a focus on industrialization, intra-African trade and value-added exports.
Food inflation still unbearable (Daily Trust)
The National Bureau of Statistics’ (NBS) data on inflation in March 2024, showed that food inflation climbed to 40 per cent, in spite of the marginal increase in general inflation to 33.2 per cent, a sign that the increase in the cost of food items outpaces inflation in other sectors. Specifically, the NBS data shows that food inflation on a year-on-year basis was caused by increases in prices of garri, millet, and akpu (uncooked fermented, yam tuber), water yam, dried fish sardine, mudfish dried, palm oil, vegetable oil, beef feet, beef head, liver, coconut, watermelon, Lipton tea, Bournvita, and Milo.
The month-on-month increase in the cost of these items, between February 2024 and March 2024, was put at 3.74 per cent. At this rate, food inflation in Nigeria is about 10 per cent away from hyperinflation, usually put at 50 per cent increase in prices, year-on-year.
The food inflation in Nigeria is a pointer to food insecurity, mainly caused by conflicts in the states considered the food baskets of the country. It could be blamed on the inconsistent agricultural policies of government that do not guarantee consistent production of food for the population. However, the NBS has been ringing the alarm bell over rising food inflation since 2023.
President Boakai Launches Liberia Digital Transformation Project, Targeting 10,000 Youths (FrontPageAfrica)
President Boakai has launched Liberia’s Digital Transformation Project, targeting 10,000 youths nationwide. This initiative fulfills his commitment made during his first state of the nation address in January. He emphasized the importance of leveraging Information Communication Technology (ICT) to create jobs for Liberian youths. The goal is to empower 10,000 young people with digital skills within the first half of 2024.
President Boakai expressed his excitement about leading Liberia’s digital transformation, stating that adapting to the digital age is crucial for the country’s progress. He highlighted ICT as a key player in Liberia’s development, supporting various sectors and driving the nation’s development agenda.
How The Gambia offers a roadmap for diaspora engagement (WEF)
Across Africa, governments have enacted a range of measures to engage their diasporas. Countries in all parts of the continent – from Zimbabwe to Nigeria, The Gambia to Kenya – have all implemented diaspora engagement initiatives. This sharpened focus on the diaspora is not happening in a vacuum. It is an acknowledgement that Africa’s diaspora remains under-tapped and that it is key to the continent’s development. The African Union has long recognized the diaspora as the ‘sixth region’ of Africa, underscoring its importance and role in driving forward the continent’s development agenda.
There are 281 million international migrants globally. Of these, more than 40 million were born in Africa. While African international migrants are a small slice of the continent’s more than 1.2 billion people, they make outsized contributions to their countries of origin and their destinations. Migrants and their descendants everywhere – including those from Africa - make significant contributions across a range of spheres, enriching societies in various ways.
In 2022, remittances to sub-Saharan Africa totalled $53 billion and were forecast to reach $54 billion in 2023. Several countries across the continent are hugely dependent on remittances; inflows to The Gambia, for example, comprised nearly 30% of its gross domestic product (GDP), the largest share of GDP in Africa. Evidently, migrants and their descendants are pivotal drivers of development. Functioning as vital bridges between host and origin countries, they facilitate essential economic, social, political and cultural exchange.
To achieve single currency, EAC must move from words to action (The New Times)
Members are today, Friday, May 3, concluding a week-long meeting in Juba, South Sudan, which brought together central bankers from the East African Community (EAC) to discuss how the region can fast-track plans aimed at adopting a common currency. Such discussions have happened from the day the region adopted the Monetary Union protocol in 2013, which was a foundation upon which countries in the region would build on to converge their currencies.
A single currency was to be adopted by 2024. Members resolved to extend the timeline by 10 more years to 2031. That is strange considering that, more than ever, currency convergence is a necessity to protect the region against external shocks such as growing depreciation of local currencies.
SADC discuss Madagascar industrial development (SADC)
The SADC Secretariat held a series of meetings with the Ministry of Foreign Affairs, the Ministry of Industry and Trade of the Republic of Madagascar on April 29, 2024, in Antananarivo, to discuss progress on the implementation of the SADC Industrialisation Strategy and the ratification process for SADC Industry Protocol
The Republic of Madagascar signed this Protocol in 2019, and the objective of the meeting was to sensitise the government of Madagascar to ratify it. The Secretary-General of the Ministry of Industry highlighted that Madagascar had achieved support for the industrialisation project from various partners, such as the promulgation of the investment law, the establishment of the industrialisation pact between public and private sectors, the One District One Factory (ODOF) which is a competitiveness enhancement project for the industries in the districts. These programs necessitate Madagascar to ratify the Protocol on Industry, which will promote industrialisation at national and regional levels.
AU: Africa’s Fertilizer Consumption Rising, but Below Target (teleSUR)
Josefa Leonel Correia Sacko, commissioner for agriculture, rural development, blue economy and sustainable environment (ARBE) at the AU Commission, said that despite producing around 30 million metric tons of mineral fertilizer annually, many African countries still heavily rely on imports, particularly non-phosphate-based fertilizers, leaving them vulnerable to market shocks.
“As a result, African soils have reached a tipping point with low levels of soil organic matter and nutrient stocks,” Sacko said during a virtual media briefing held in Nairobi, the capital of Kenya, on the upcoming Africa Fertilizer and Soil Health Summit that is scheduled to take place on May 7-9. Sacko said that the optimized use of mineral and organic fertilizers, along with complementary inputs, can drive higher productivity, profitability, soil health improvement, and climate resilience.
Afreximbank to discuss Mobilizing Investment in African Energy at IAE 2024 (Blueprint)
The Director of Project and Asset-Based Finance for the African Export-Import Bank (Afreximbank), Helen Aigbe Brume, will discuss financing Africa’s energy growth at the Invest in African Energy (IAE) forum in Paris.
Committed to financing and promoting intra- and extra- African trade, Afreximbank plays a leading role in developing African energy projects that target industrialisation and economic development. In Angola, the multilateral financial institution is investing in the Cabinda oil refinery, set to double the country’s refining capacity upon completion and reduce reliance on and associated emissions from imported refined petroleum products. In Nigeria, Afreximbank is developing the country’s first indigenous floating LNG facility with UTM Offshore, as well as a $60-million gas processing facility with Alphaden Energy & Oilfield, with a view to unlocking gas resources for Africa’s enhanced energy security.
IAE 2024 is an exclusive forum designed to foster collaboration between European investors and African energy markets. Taking place May 14-15, 2024, in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors, and policymakers.
Mali, Burkina Faso, Niger urged to “reconsider” decision to leave ECOWAS (APAnews)
The Council of the Wise Men, created by ECOWAS in 2005, is an important instrument for the promoting peace, security and stability in West Africa. Under the chairmanship of Dr. Goodluck Ebele Jonathan, the Council of Elders of the Economic Community of West African States (ECOWAS) held a two-day retreat from 29 to 30 April 2024 in Abidjan, Côte d’Ivoire.
The meeting, which centred on the theme “Benefiting from the existence of the Council of the Wise to respond to the current challenges of governance, peace and security in the ECOWAS region,” was an opportunity for the Wise Men of the region to reaffirm their commitment to regional unity, peace and security. In its final communiqué received by APA, the Council of the Wise Men, expressed its call for more coordinated approaches’ within ECOWAS, both in its exchanges with the structures of the member states and in the development of regional responses, particularly with regard to preventive action and mediation.
With this in mind, the members of the Council expressed their “concern at the declaration by Burkina Faso, Mali and Niger of their intention to withdraw from the Community,” inviting the “three Member States to reconsider their position in the general interest of their populations and of regional integration.”
See also: ECOWAS: Navigating regional dynamics and the imperative for unity (Daily Trust)
There are a lot of opportunities for India under AfCFTA (GhanaWeb)
Speaking at the 4th Session of the India-Ghana Joint Trade Committee held in Accra on Thursday, May 2, 2024, the Deputy Trade Minister of Trade and Industry stated that, “With the coming into force of the African Continental Free Trade Area (AfCFTA), we believe that there are a lot of opportunities for India in the area of pharmaceuticals, automotive; vehicle component manufacturing for example, garment and textiles.”
“These are areas that we want to have a very deep corporation and with the coming into force of the African Continental Free Trade Area I know you know, that for the first time, Africans have decided to do business among ourselves, this customs union have become the biggest in the whole world. Even bigger than the ACP now,” he stated.
India to support Namibia in developing digital payment system (TV BRICS)
According to the source, the two organisations have signed an agreement to this effect, which envisages collaboration in building a platform based on the Unified Payment Interface (UPI) introduced by India at the national level, with strong security elements. This collaboration marks a strategic leap in strengthening Namibia’s financial infrastructure and promoting inclusive economic growth.
The co-operation aims to expand digital financial services and strengthen real-time payment transactions for merchants and citizens of the African country. This is reported by Prensa Latina, a partner of TV BRICS. It also ensures the advancement of future technological developments and market requirements.
India-Nigeria trade officials meet as China’s investments in Africa falter (The Indian Express)
Amid an ongoing property crisis in China that has put brakes on its investments in Africa, Indian officials held a Joint Trade Committee (JTC) meeting with their Nigerian counterparts last month, the commerce and industry ministry said on Friday (May 3). This comes after the International Monetary Fund (IMF) last year said that the ripple effects of China’s slowing economy extended to sovereign lending to sub-Saharan Africa, which fell below $1 billion last year—the lowest level in nearly two decades.
China’s influence on Africa is such that a one percentage point decline in Beijing’s growth rate could reduce average growth in the region by about 0.25 percentage points within a year, IMF said, adding that for oil-exporters, such as Angola and Nigeria, the loss could be 0.5 percentage points on average.
Nigeria is the second-largest trading partner of India in the Africa region. Bilateral trade between India and Nigeria stood at $11.8 billion in 2022-23. In the year 2023-24, the bilateral trade stands at $7.89 billion showing a declining trend. With a total investment of $27 billion, approximately 135 Indian companies are actively engaged in Nigeria’s vibrant market. These investments traverse diverse sectors, encompassing infrastructure, manufacturing, consumer goods, and services.
Dr Akinwumi Adesina, president of the African Development Bank Group, emphasised the urgent need for a “bold and innovative approach” from Multilateral Development Banks (MDBs) to effectively address the rapidly evolving challenges facing the world. Adesina highlighted several transformative initiatives that align with both the Sustainable Development Goals and the African Union’s Agenda 2063. The African Development Bank president was speaking on Tuesday 30 April at the Islamic Development Bank’s 50th-anniversary symposium, titled Envisioning Future Value Propositions for MDBs: New Horizons for Cooperation.
Tinubu positioning Nigeria to earn from digital economy – Shettima (21st CENTURY CHRONICLE)
Vice President Kashim Shettima has restated the determination of the President Bola Tinubu-led administration to position the country’s vibrant youth population to benefit from the digital economy by creating access to jobs. He stated this in an address at the 2nd Chronicle Roundtable organised by 21st Century Chronicle Newspaper in Abuja, on Thursday, with the theme: “Tinubu administration’s economic and social agenda: How it will transform Nigeria.”
Citing the example of outsourcing, he noted that Nigeria, with a population whose average age is 16.9 and high English language proficiency by the majority, was well positioned to be a major player in the global outsourcing market, earning huge foreign exchange.
He said it was in realisation of the potential inherent in the digital economy that the administration was coming up with policies and initiatives that would help the youth in particular, take advantage of the opportunities.
Fintechs and AI seen as key to boosting financial markets in Cemac region (Business in Cameroon)
African fintechs and artificial intelligence (AI) are being touted as key to boosting the financial markets, particularly in the Central African Economic and Monetary Community (Cemac) region. The recommendation comes from the third edition of the Africa Capital Markets Forum (ACMF), held in Douala, Cameroon, on April 24-25.
“We must embrace emerging technologies like blockchain, AI, and fintech, which offer not only increased transparency but also the possibility of rationalizing and securing financial transactions across our borders,” said Adel Elaroussi, director of financial services at CDG Capital, a Moroccan bank.
African fintechs offer innovative and accessible solutions that can facilitate access to financial markets for populations. However, it is essential to have an official contract validated by the Central African Financial Market Surveillance Commission (Cosumaf) for them to operate as legitimate actors in buying securities or collecting funds for management companies, according to David Ekwabi, marketing director at Maviance, a company specializing in digital financial services and software development.
See also: Enhancing Digital Transformation: Innovations and Obstacles in East Africa (Africa.com)
U.S. trade pact extension opens opportunity for FG to strengthen naira (Businessday NG)
Nigeria is yet again provided with an opportunity to take advantage of Africa’s trade pact with the U.S. to export its local products to the world’s biggest market as there is a high possibility the agreement would be extended. The U.S. Congress has put forward proposals that would see the African Growth and Opportunity Act (AGOA) – which allows SSA countries to export up to 7,000 products duty and tariff-free to the U.S. extended to 2041. Experts say the extension is to enable countries like Nigeria, which did not take full advantage of it to do so now especially in earning foreign exchange and strengthening its naira currency amid acute dollar scarcity.
Nigeria’s non-oil AGOA exports have remained stagnant, primarily comprising a few agricultural products and handicrafts. Experts attribute Nigeria’s low non-oil AGOA exports to the lack of competitiveness of the country’s manufacturers. They stated that the country must make its products competitive by addressing major challenges limiting manufacturing in the country.
Intellectual property, a key tool to promote trade, new businesses and FDI (Khmer Times)
Intellectual property is an essential tool for promoting trade in goods and services, new businesses and micro, small, and medium enterprises, and foreign direct investment (FDI) through value-added, commercialization, creation of a source of finance, innovation promotion, and research and development through technology transfer.
The remarks were made by Mrs. Cham Nimul, Minister of Commerce and Chair of the National Committee for Intellectual Property requested all stakeholders to work together to prevent intellectual property infringement, which is an obstacle to innovation, and strongly hoped that Intellectual Property Day 2024 will continue to cultivate a familiar spirit in promoting awareness-raising campaigns, which is closely linked to the people’s lives and benefits all areas of society.
At the end of the celebration, Nimul and Vanndy presided over the launching ceremony of five intellectual property-related projects, including 1) Inclusive Growth Project: Promoting Cambodian Entrepreneurs with Disabilities through Intellectual Property Education and Business Branding, (2) Project for Skill-based Learning and Mentoring for Design School, (3) Launch of IP Web Application, (4) Launch of Distance Learning Platform on Intellectual Property, and (5) Launch of Intellectual Property Analysis Programme for Business.
This year’s celebration of the World Intellectual Property Day 2024 was held under the theme “IP and SDGs: Building our common future with innovation and creativity.”
Navigating the Future: G20 Nations and Their Ecological Footprint Projections Toward 2050 (Environment+Energy Leader)
According to a study from the University of Sheffield, only Argentina, Brazil, Canada, and Russia among the G20 are expected to achieve a positive ecological footprint by the milestone year 2050, the target date for achieving net zero emissions globally.
The research, conducted by Professor Lenny Koh of Sheffield’s Energy Institute and published in Scientific Reports, marks the first forecast of ecological footprints for all G20 nations over the next three decades, underscoring a critical need for environmentally sustainable economic and industrial practices. Leveraging sophisticated forecasting tools like ARIMA, Auto-ARIMA, and Prophet models, combined with innovative AI technologies, the research team enhanced the accuracy of future environmental impact predictions.
The findings from the study advocate for an integrated approach to environmental policy-making that harmonizes economic, technological, and social strategies. There is a pressing call for adopting sustainable energy sources like solar and wind, investments in green infrastructure, and promoting sustainable urban and industrial practices.
The Global Good Governance Summit wraps up with a strong focus on aligning good governance (ZAWYA)
The Global Good Governance Summit was held in Manila, Philippines, under the auspices of the Global Good Governance Programme organised by Cambridge IFA. This summit convened to discuss and deliberate on strategies for fostering a sustainable future. The theme of the summit revolved around bridging the gap in achieving the SDGs and the role of effective leadership in bringing together governments, corporations and social sectors to create impactful strategies, overcome challenges, and lead the way towards a sustainable and prosperous future for all.
Dr Humayon Dar, Chairman of the Cambridge Global Good Governance Programme underscored the crucial role of governance in private business as well as within the charity sector, emphasising the importance of transparency and accountability. “Governance is continuously evolving. From a simple notion of the act or process of governing or overseeing the control and direction of something (such as a country or an organisation), it has now embraced reporting, transparency, sustainability, corporate social responsibility and a lot more. The UN’s Sustainable Development Goals have given the concept a wider and more comprehensive scope.”
Goods Council takes stock of progress to improve its functioning, advance WTO reform (WTO)
The Council for Trade in Goods (CTG) agreed in October 2023 to periodically hold informal sessions where experts from the WTO Secretariat would present the digital tools available and members would be given an opportunity to provide feedback and suggestions on possible improvements. The outgoing Council Chairperson, Ambassador Adamu Mohammed Abdulhamid of Nigeria, noted the value of these sessions in providing members with a better overview of WTO digital tools and a better understanding of how these tools can assist members’ delegations, especially to prepare for committee meetings and follow up on them.
Quick links
A stronger and more responsive financial system: UN expresses support for Brazilian positions at G20 (G20 Brasil 2024)
International Decade of Sciences for Sustainable Development Forum opens in Beijing (UNESCO)
AfCFTA: A Beacon of Hope or a Failed Project? (Friedrich Naumann Foundation)
Navigating the crossroads: Actionable cooperative measures to address global development challenges (Middle East Institute)
The world wealth gap has grown post pandemic but where has it been worst (Devex)