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Uganda pursues diverse routes to strong economic performance (Trade for Development News)
The agricultural sector plays a dominant role in Uganda’s economy, contributing to a quarter of the country’s Gross Domestic Product and generating 70% of employment opportunities. Uganda has demonstrated notable economic progress, with a 30% increase in its formal exports between 2008 and 2015, and a significant reduction in poverty, falling from 29% in 2008 to 18% in 2013. Gold remains a leading export earner for Uganda, contributing substantially to the nation’s total exports valued at USD 1.82 billion, representing almost half of the country’s merchandise exports. Tourism also plays a crucial role in the economy, employing a significant workforce, predominantly women. Other primary exports include coffee, cocoa beans and tea.
Zambia needs 738,000 tonnes of maize for relief efforts (CGTN)
Zambia needs approximately 738,000 metric tonnes of maize to meet the food needs of individuals impacted by drought over the next 14 months, according to the nation’s disaster response agency on Tuesday. Gabriel Pollen, the National Coordinator of the Disaster Management and Mitigation Unit stated in a joint press briefing on Tuesday that the maize is required in the immediate response to provide relief food to about 6.6 million people.
“The target is 84 districts out of 116 districts in Zambia that have been negatively affected by the drought,” Pollen noted. He said so far 44,286 metric tonnes of maize has been made available by the Ministry of Agriculture and the Food Reserve Agency for immediate delivery to the affected districts, adding that the devastation caused by the drought has caused food insecurity.
Embrace ZiG to survive AfCFTA competition (The Herald)
Zimbabweans should embrace the newly introduced local currency, the Zimbabwe Gold (ZiG) to ensure the country does not become a supermarket of the region. This comes as the operationalisation of the Africa Continental Free Trade Area (AfCFTA) gathers momentum. The US dollar is in the basket of currencies used in Zimbabwe as part of the multi-currency system.
As it stands the use of US dollar dominates local transactions and according to the Governor of the Reserve Bank of Zimbabwe (RBZ), Dr John Mushayavanhu, by end of 2023, over 75 percent of local transactions were being conducted in US dollars. It is, however, feared that the dominance of the US dollar in the local market will attract more regional imports when the AfCFTA is operationalised, rendering Zimbabwe a supermarket for products from the region and beyond. It is highly anticipated that the use of US dollar will attract more competition locally, given the competitiveness of some regionally sourced goods.
Speaking during the AfCFTA Tariff Offer dissemination workshop convened by the Competition and Tariff Commission (CTC) and Confederation of Zimbabwe Industries (CZI) on Tuesday, economist Dr Reneth Mano, said embracing the local currency would go a long way in improving the local industry’s competitiveness in face of potential cut-throat competition to be caused by the AfCFTA.
‘Only 300 businesses in Ghana meet criteria to participate in AfCFTA’ (Ghana News Agency)
Mr Patrick Adu Osei, the Chief Programme Officer, National African Peer Review Mechanism Governing Council (NAPRM-GC), said only 300 out of 61,000 businesses engaged in Ghana meet the criteria to participate in the Africa Continental Free Trade Area (AfCFTA) market. He said the country, in preparation towards the AfCFTA, set up the AfCFTA National Coordination Office to prepare businesses to take part in the trade market, which led to the review of businesses, with the findings presented in a report.
Mr Osei, who emphasised the need for awareness creation, said many companies in Ghana were unaware of the trade market and its prospects. “The figure tells that most Ghanaian businesses are either not aware of the AfCFTA and its requirements, so do not prepare for it, or their corporate governance practices are not adequate,” he said.
The AfCFTA National Coordination Office’s report, in response to the lack of knowledge on the trade area’s regulations, recommended that regional offices be set up to increase awareness on the market and its protocols.
Nigeria - Country Diagnostic Note 2023 (AfDB)
Nigeria’s exports of goods and services as a percentage of GDP, at 10.7 percent, is the lowest among its middle-income peers in Africa, compared to 31.2 percent for South Africa, 44 percent for Mauritius, 44.6 percent for Botswana while Tunisia and Angola stood at 42.1 percent and 44.3 percent respectively. While for decades the share of manufacturing in Nigeria’s GDP has remained at around 7.0 percent, the performance of the sector has deteriorated in the past five years; having declined by 11.5 percent, -4.3 percent and -0.2 percent between 2015 and 2017.
Nigeria’s manufacturing exports represent only 3.0 percent of total revenues from exports, but accounts for 50 percent of imports. Instead of expanding the share of manufactured goods, Nigeria focuses on a model of import substitution instead of looking to create wealth through export market development and product diversification.
Gender equality key to sustainable development (Tribune Online)
Niger Governor, Muhammed Umaru Bago has said that the gender equality of women, is a moral imperative, as well as a key driver of sustainable development and social progress. The Governor stated this while declaring Open a Two-Day 2024 North Central National Women Sensitisation Workshop, held at the Justice Idris Legbo Kutigi International Conference Center Minna, the state capital on Monday 29th April 2024.
The Governor, represented by his deputy, Comrade Yakubu Garba, opined that the theme of the workshop: “Community Participation, Critical Stakeholders Support and House of Representatives Committee on Women Affairs as essential partners in the fight against insecurity, Drug abuse, Trafficking and Violence Against Women and Children in our Society”, underscores the urgent need for collaboration and collective action by all stakeholders in tackling social vices and societal challenges, that creates safer environment for all.
Morocco: 2024 Article IV Consultation (IMF)
The Moroccan economy continued to show resilience to negative shocks. Despite water scarcity, the September 2023 earthquake, and challenging external conditions, economic activity picked up to 3 percent in 2023 thanks to strong exports and a rebound of domestic demand. Notwithstanding the pickup in growth, unemployment rose to 13.3 percent at the end of 2023, mainly reflecting the impact of water scarcity on the agricultural sector. GDP growth is expected to gradually pick up to 3½ percent over the next few years, boosted by the continued implementation of the structural reform agenda.
The current account deficit narrowed significantly. This reflects both a reduced trade deficit in goods (driven by the lower import prices of energy, raw and intermediate goods, and food items, as well as the robust performance of automotive and electronics exports), buoyant export of services (both tourism and non-tourism related), and the continued expansion of inward remittances.
The implementation of the announced structural reform agenda has continued. The first two pillars of the generalization of the social protection system, i.e., the extension of compulsory basic health insurance and the introduction of cash transfers to poor families, have now been implemented. Further steps were taken to restructuring SOEs, operationalizing the Mohammed VI Investment Fund and new Charter of Investment, and reforming both education and health care systems.
South Sudan: The world’s newest nation’s lays the foundations for trade (Trade for Development News)
South Sudan is pursuing regional, continental and international trade. Africa’s youngest country, with a population of just over 12 million people, is already a member of the EAC. With the support of the EIF and other Aid for Trade (AfT) development partners, it aims to become a member of the WTO and the AfCFTA.
Oil revenues, which make up more than 90% of the country’s exports, have played an important part in the country’s progress since its independence from Sudan in 2011. However, the Government of South Sudan recognizes that this is not a sustainable option to lift the population out of poverty, internal conflict, and persistent humanitarian crises, all of which are compounded by vulnerability to climate change and natural disasters. Agriculture employs 95% of the population – but only about 4% of South Sudan’s vast arable land is under cultivation due to insecurity.
Surge in service sector investments to bolster intra-African services sector (The Citizen)
A recent report highlights a significant shift in global investment dynamics favouring the services sector, with analysts predicting a positive impact for intra-African services. A global shift in foreign direct investment (FDI) dynamics, with investors globally increasingly favouring the service sector over traditional manufacturing, could favour Africa, according to Tanzanian-based analyst, Musila Muoki. According to a new report by the UN Trade and Development Organization, the global FDI shift is being shaped by “trends in global value chains, technological advancements, geopolitical dynamics and environmental concerns.”
“From 2004 to 2023, the share of cross-border greenfield projects in the services sector jumped from 66% to 81%,” the authors of the report released on April 23 explain. The trend has been echoed in Africa, where greenfield service sector investment has surged, with FDI inflows as a share of the continent’s GDP being 69% in 2023, up from 40% a decade earlier
While the global shift carries concerning implications for manufacturing, the pivot towards service trade comes at a time when efforts are being made to bolster intra-African trade under the African Continental Free Trade Area (AfCFTA) agreement. Musila Muoki, co-founder of Liberty Sparks, a Tanzania-headquartered Think Tank, pointed to Africa’s readiness for a service sector takeoff fueled by AfCFTA, especially since the Trade in Services Protocol has been in force since 2019.
Africa can only attract development finance with sustainable debts - Seth Terkper (MyJoyOnline)
Seth Terkper, a former Minister of Finance, has urged African governments to strive to make their debts sustainable to attract development finance assistance. “Africa must do something about its debt, otherwise, we might be shut out of development finance,” Mr Terkper who led Ghana’s 16th International Monetary Fund (IMF) loan-support programme, said.
He explained that because many African countries have reached lower and middle-income status, they could no longer rely on grants and concessional financing for sustainable development and poverty alleviation. As such, development finance would be supportive going forward, hence, the need for African governments to assiduously work towards resolving their debt burden
Power line linking Kenya to southern Africa set for 2025 (The East African)
A key power line linking Kenya to Zambia through Tanzania is set for completion in November 2025, raising hope for cross-border electricity imports and exports among nations covered by the high-voltage grid. The Tanzania Electric Supply Company (Tanesco), the country’s power utility, confirmed that the 400 kilovolt (kV) Tanzania-Zambia line will be completed in November 2025.The project seeks to connect the Eastern Africa Power Pool (EAPP) with the Southern Africa Power Pool (SAPP).
Kenya is a member of the EAPP alongside 12 other countries, namely Uganda, Tanzania, Rwanda, Burundi, and the Democratic Republic of Congo (DRC). Others are Egypt, South Sudan, Sudan, Somalia, Libya, Ethiopia and Djibouti. Completion of the line will allow Kenya and other countries within the EAPP to sell and buy power from SAPP countries, which include South Africa, Tanzania, Angola, Mozambique, Lesotho, Eswatini, Zambia, Zimbabwe, Malawi, Namibia, Botswana, and the DRC.
Liberia Launches ECOWAS Integration Program (Liberian Observer)
Deputy Foreign Affairs Minister for Regional Integration, Mr. Ibrahim Al-Bakri Nyei urged the ECOWAS National Technical Committee to identify quick win and tangible projects that will impact the lives of community citizens through the ECOWAS Cross-Border Cooperation Support Program (ECBCSP).
He remarked as he officially launched the National Platform for the ECOWAS Cross-Border Cooperation Support program aimed at facilitating Free Movement and Migration within countries of the Mano River Union while representing the Government of Liberia on Monday, April 29, 2024, at the ECOWAS Liberia Country Office first street Sinkor.
The objective of the launch is to strengthen Cross-Border Cooperation and foster joint development planning and actions, develop knowledge through capacity building, training, information, education, and Communication (IEC) on the dynamics of cross-border cooperation, promote and consolidate Peace, Stability, and development. The National Platform for ECOWAS Cross-Border Cooperation Support Program will also support actions in the area of Management of Migration, free movement, and regional security, along with the full support and implementation of Social-Economic Development Initiatives or local community development projects.
African countries want all standards harmonised (Monitor)
The African Organisation for Standards has said all countries on the continent must harmonise their standards to effectively trade under the African Continental Free Trade Area. Speaking at the 38th International Organisation for Standardisation (ISO) Committee for Conformity Assessment workshop organised by Uganda National Bureau of Standards (UNBS), Dr Hermogene Nsengimana, the African Organisation for Standards secretary general, said if the African Continental Free Trade Area dream is to be achieved, all countries must ensure that their standards are harmonised to reduce duplication.
“We should borrow a leaf from the East African Community where they started harmonising standards. We need to move together if we want to push intra-continental trade,” he said, noting there has been an attempt to harmonise agro-processing, pharmaceuticals, automotive and transport standards at the continental level. “We have over 1,800 standards. By June 200 would have been harmonised. This will reduce duplication and we are also trying to make standards simple for traders,” he said.
Trade across Africa continues to be disrupted due to variances in product standards and country specifications.
#DiscoverMyAfrica, A Celebration of Creative Economy on Africa Month (African Union)
A thriving creative economy fuels innovation, jobs, and economic growth across Africa. Recognizing this potential, the African Union and Google Africa join forces to launch the #DiscoverMyAfrica Shorts Challenge, a month-long campaign of the continent’s rich diversity, heritage, and vibrant spirit.
In celebration of Africa Month, YouTube creators across Africa are invited to share short videos capturing their unique perspectives using the #DiscoverMyAfrica hashtag. The challenge encourages them to showcase various facets of African life, from music and art to food, fashion, and local landmarks. A curated playlist of African-inspired music on YouTube Music fuels inspiration and accompanies these creative expressions.
This initiative goes beyond celebration. As Ms. Chido Mpemba, AU Youth Envoy, states, “#DiscoverMyAfrica empowers African youth to share their stories and rich cultural heritage globally.” By providing a platform for African voices, the challenge fosters cultural exchange and positions Africa as a hub of creative energy. It’s about unlocking the vibrant future of Africa’s creative landscape, aligning with the vision of a digitally-enabled Africa harnessing its cultural wealth for economic growth and social progress.
Building resilience in Africa’s civil aviation: lessons from COVID-19 initiatives (UNECA)
The United Nations Economic Commission for Africa (ECA) in collaboration with the African Union Commission (AUC), the African Civil Aviation Commission (AFCAC) and the African Airlines Association (AFRAA) hosted a webinar in Addis Ababa on April 28 to discuss the resilience of the African Civil Aviation Industry during and after the COVID-19 pandemic.
Aviation is crucial for effective implementation of the African Continental Free Trade Area (AfCFTA). However, strong collaboration among stakeholders of the aviation industry is essential to optimise the benefits of AfCFTA, said Robert Lisinge, Acting Director of the Private Sector Development and Finance Division of ECA.
The event assessed the effectiveness of strategies for the survival and recovery of the aviation industry initiated by various organisations during the COVID-19 pandemic. “It is crucial to undertake an in-depth review of strategies and policies initiated during the pandemic, to determine the extent to which they contributed to build the resilience of the aviation industry, and identify lessons learned from implementing the strategies” said Lisinge.
See also: African airlines carried estimate of 86 million passengers in 2023 (Tribune Online)
PAPSS Set For Expansion to Boost Intra-Africa Trade Payments (This Day Live)
The Pan African Payment and Settlement System (PAPSS) which was launched to make cross-border transactions seamless, is set to capture more markets in Africa. The Chief Executive Officer of PAPSS, Mr. Mike Ogbalu, disclosed the plan during a stakeholders’ forum held in Lagos. Ogbolu, who was represented, said Fintech across the continent of Africa can operate more seamlessly and widely with the assistance of PAPSS.
According to him, “Currently, there are numerous impediments and challenges facing intra-African trade payments. Banks must navigate sometimes conflicting local, multi-country and multiregional regulations to enable the seamless movement of funds on behalf of their diverse customers across the continent. Operational inefficiencies and onerous compliance requirements are time-consuming impediments.”
As a centralized Financial Market Infrastructure that enables the efficient flow of money securely across African borders, minimizing risk and contributing to financial integration across the regions, PAPSS works in collaboration with Africa’s central banks to provide a payment and settlement service to which commercial banks and licensed payment service providers across the region can connect as ‘Participants’.
In his presentation, Mr. Osita Ugwu, Chief Technology Officer at PAPSS, disclosed that 60 banks have already gone live on PAPSS platform, while another 60 are doing integration.
Stakeholders empowered on corporate governance to take advantage of AfCFTA (GhanaWeb)
The National African Peer Review Mechanism (NAPRM), in collaboration with the Commission for Civic Education, has engaged the district oversight committees in the Upper East Region, on corporate governance to take advantage of the African Continental Free Trade Area (AfCFTA). The stakeholders, including business associations, community and faith-based organisations, were drawn from 10 municipal and district and assemblies in the region.
The review examined key corporate governance and intra-African trade challenges that must be addressed to facilitate the AfCFTA implementation in Ghana. It was carried out on the theme: “Corporate Governance as a Catalyst for the Implementation of the AfCFTA in the Republic of Ghana”.
The Ecosystem: Africa and Europe connect on innovation (Science|Business)
The EU has a long history of research cooperation with Africa, but has only recently turned its attention to innovation cooperation. The challenge has been to find a way of working that is mutually beneficial, rather than reproducing the one-sided relationships typical in development aid projects. The conclusion this year of the ‘Enrich in Africa’ project, which set out to connect innovation ecosystems in Europe and Africa, is one sign that a successful way forward may have been found. Its approach, and the community it has built, will now be taken forward by the Enrich in Africa Centre, based in Cape Town.
There is also the possibility of closing the gap for innovations moving at different speeds in Africa and Europe. For example, mobile money has developed rapidly in Africa, while Europe has focused heavily on deep tech. “The innovations that make it, make it because the market needs them, and that is the same in Africa and Europe,” Ntuli said. “But there is something to be learned in Africa about how innovations succeed against the odds, in some cases when very little infrastructure is in place, because the market needs them so much.”
World Bank identifies key digital trade gaps in Horn of Africa Initiative report (Trade Finance Global)
A comprehensive Digital Trade Gap Assessment released by the World Bank provides an analysis of the Information and Communications Technology (ICT) framework across the Horn of Africa Initiative (HoAI) countries. The Horn of Africa Initiative, a country-led programme, was launched in 2019 with the goal of promoting regional economic integration between five countries: Djibouti, Ethiopia, Kenya, Somalia, and South Sudan.
The Bank’s report highlights a varied landscape of digital readiness among the HoAI countries: Kenya emerges as the frontrunner with robust digital trade systems, including an effective National Single Window (NSW) that facilitates streamlined trade processes. Ethiopia is catching up with significant initiatives like the Ethiopia Electronic Single Window (EESW) and ongoing efforts to enhance electronic cargo tracking systems. Djibouti and South Sudan show potential for growth despite the current limited digital trade infrastructure. Both countries are prioritised for immediate digital enhancements, including the development of trade information portals and e-cargo tracking solutions. Somalia presents a unique challenge with its nascent digital infrastructure, which requires foundational developments to support basic trade processes.
Telco, fintech partnerships key to Africa’s digital economy - Elliott (Businessday NG)
What this means is that together, MTN and Mastercard can work to connect millions of people and small businesses across Africa with digital tools to transact through secure mobile payments, expanding access to the benefits of the cashless digital economy. The partnership will also see Mastercard support MTN’s ambition to grow into a major fintech platform that can add even more value for both merchants and consumers on the continent.
Why Africa can reap billions from the digital economy (The Exchange Africa)
Africa is on the verge of an economic revolution. From the north to the southern part of the Saharan desert, nations are striving to eliminate poverty and gain a strong foothold in global markets. In the same vein, the continent is banking on the potential held by the digital economy. Reports ping the sector to higher standards, including a report from non-profit Endeavor predicting that the market size of Africa’s digital economy could reach $712 billion by 2050.
Africa’s digital economy, already valued at $115 billion, is still in a nascent phase, with only 33 per cent of the population using the internet. However, Endeavor’s analysis shows rapid growth. Further, Africa’s GDP is expanding at a compound annual growth rate (CAGR) of 4 per cent, comparing favourably to Europe and Latin America’s 1.7 per cent. The population is simultaneously becoming much more prosperous, with consumer spending growing at 9.4 per cent CAGR.
In 2012, Africa’s digital economy was estimated at roughly 1.1 percent, or $30 billion of its GDP. In 2020, estimates indicated a contribution of 4.5 per cent, or $115 billion. This growth is expected to continue in the coming years. A 2020 study by Google and the International Finance Corporation (IFC) found that the digital economy could contribute $180 billion (5.2 per cent) to the continent’s GDP by 2025, and $712 (8.5 per cent) billion by 2050.
See also:
The race for AI supremacy (This Day Live)
A Roadmap for AI Governance: Lessons from G20 National Strategies (ORF)
A groundbreaking international tax initiative managed by the Organisation for Economic Co-operation and Development (OECD) and the United Nations Development Programme (UNDP) continues making strong progress assisting developing countries boost tax revenues and better mobilise domestic resources, according to a report released today.
Effective taxation and fiscal policies are vital for development financing as they not only generate revenue but also foster accountable and inclusive governance. In this context, the Tax Inspectors Without Borders (TIWB) Annual Report 2024 shows the impact of the initiative’s work over the past nine years, resulting in the generation of USD 2.30 billion in additional tax collections and USD 6.05 billion in additional tax assessments by developing countries worldwide. These efforts have significantly contributed to advancing the Sustainable Development Goals (SDGs) by increasing domestic resource mobilisation.
New report reveals limited funding for global south organizations (Devex)
Less than one-tenth of the official development assistance funneled to civil society goes toward organizations in the global south, according to a new report released last week — one that analyzed the funding behaviors of a dozen donors from 2009 to 2021.
The report, Too Southern to be Funded, was published by the #ShiftThePower movement, a coalition of organizations pushing for locally led development. It found that almost 63% of funding went to countries’ own civil society organizations, while just under 29% went to civil society in other global north countries, leaving a little over 8% for organizations in the global south.
UN Report Charts Path Towards Just and Sustainable Transition in Africa (SDG Knowledge Hub)
The UN Economic Commission for Africa (UNECA) has issued a report that highlights opportunities for just and sustainable transitions (JSTs) in Africa. The 2024 Economic Report on Africa argues that “youthful population, arable land, renewable resource endowments, huge deposits of strategic minerals, and latecomer advantages from emerging technologies position Africa to shape the sustainability transition at the global level while closing its own gaps in energy availability.”
Recognizing the role the region’s abundant renewable energy resources can play in enabling African countries to achieve their development objectives, the report acknowledges that, guided by African-informed narratives and needs, “the transition away from fossils needs to be gradual.” Africa’s current investment in its “sustainability transition” and in renewables remains negligible, according to the report.
“A just and sustainable transition… promoting accelerated, inclusive, and sustainable growth, as well as diversification and green industrialization will help Africa reach its potential,” noted Under-Secretary General and UNECA Executive Secretary Claver Gatete in a foreword. “For this to materialize, however, African countries need holistic development plans and strategies that fundamentally redirect their production, consumption, governance, technology, human capital, and financial systems,” he underscored.
See also:
Labor and Climate Change: G20 Strategies for a Just Transition (G20 Brasil 2024)
Green Tape: EU trade policy (Friedrich Naumann Foundation)
Unlocking The Future With Clean Energy: A Global Imperative (Forbes)
G7 commits to coal phaseout with caveats, may influence G20 and COP29 talks (Businiess Standard)
The Group of Seven (G7) developed economies, in the recent meeting of its Climate, Energy, and Environment Ministerial, has decided to phase out unabated coal during the first half of the 2030s. This decision sets the tone for the upcoming global dialogues on energy transition at COP29 (Conference of the Parties) in Baku and the Group of Twenty (G20) in Brazil later this year.
“We commit to phasing out existing unabated coal power generation in our energy systems during the first half of the 2030s or in a timeline consistent with keeping a limit of 1.5°C temperature rise within reach, in line with countries’ net-zero pathways. (We would also) reduce as much as possible, in the meanwhile, the utilisation of unabated coal power generation plants in our energy systems to a level consistent with keeping the limit of 1.5°C temperature rise within reach,” the final communiqué of the G7 meeting in Tunis, Italy, said.
While experts have criticised the language around the phaseout commitment as weak, the G7 is likely to exert more pressure on developing nations to give up fossil fuels — a stance they maintained at the last G20 meeting presided over by India and at COP28 in Dubai.
ICAO symposium underscores importance of global capacity development initiatives (ICAO)
ICAO Council President Salvatore Sciacchitano, speaking yesterday at the 2024 ICAO Global Implementation Support Symposium (GISS), ICAO’s leading implementation support and capacity-building event, advocated for air transport’s role as a catalyst for sustainable development. He called for greater financial and political investment to secure the safety, security, and sustainability of its expansion.
“We must commit to a global implementation support strategy that ensures the ever-increasing benefits of international civil aviation are enjoyed by all citizens of the world, regardless of nationality,” Mr. Sciacchitano declared. “Through diplomacy, technical excellence, and a shared vision of success, we have created a safe and secure air transportation system that enables responsible and sustainable growth,” he added, noting that through the combined efforts of government and industry, “our efforts, guidance, and continued support will ensure our ongoing success.”
Quick links
Pretoria’s interest-based BRICS foreign policy and trade focus (Daily Maverick)
Charting the Future of Customs: Insights from the 243rd/244th PTC Meetings (WCO)
Intergovernmental Group of Experts on E-commerce and the Digital Economy, seventh session (UNCTAD)
Members review reforms to facilitate participation in rules of origin work (WTO)
Cautious optimism after latest un plastic treaty negotiations (Devex)
Brasil advances debates on information integrity and platform regulation at G20 side event (G20 Brasil 2024)
BRICS: Russia Gains $14 Billion Oil Revenue Despite US Sanctions (Watcher Guru)
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South Africa: Trade statistics for March 2024 (SARS)
South Africa recorded a preliminary trade balance surplus of R7.3 billion in March 2024. This surplus was attributable to exports of R164.1 billion and imports of R156.8 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN).
The year-to-date (01 January to 31 March 2024) preliminary trade balance surplus of R10.8 billion was an improvement from the R5.7 billion trade balance deficit for the comparable period in 2023. On a year-on-year basis, export flows for March 2024 (R164.1 billion) were 15.3% lower compared to R193.7 billion recorded in March 2023, whilst import flows were 15.2% lower having decreased from R184.9 billion in March 2023 to R156.8 billion in the current period.
President Ruto Champions Growth of Trade and Investment in Kenya (Modern Ghana)
Kenya’s President Dr. William Ruto closed the fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit underscoring Kenya’s commitment to fostering a conducive environment for trade and investment, emphasizing the significant strides made in economic transformation and the expanding Kenya-US trade relations. The Summit discussed how trade and investment between the region, Africa, and the U.S. can be accelerated under the theme ‘Catalyzing the Future of U.S.-East Africa Trade and Investment’.
President Ruto said, “The consistent strengthening of Kenya-U.S. ties is exemplified by the steady growth in the value of bilateral trade, especially its acceleration between 2015 and 2022 when Kenya’s negative trade deficit narrowed significantly from KShs 85 billion to KShs 13.35 billion. The pace of growth in Kenya-U.S. trade, affirms the vast opportunity that exists for the growth of Kenyan exports and expansion of their variety with a very real possibility of broadening a positive balance of trade.
U.S. companies in Kenya continue to excel through effective partnerships with both the government as well as local private sector firms, to implement diverse projects and enhance access to energy and power, develop infrastructure, create state-of-the-art manufacturing plants, develop local supply and value chains, and support Kenya’s digital transformation.”
U.S. Chamber Delegation to Kenya Lays Groundwork for State Visit (U.S. Chamber of Commerce)
The U.S. Chamber of Commerce’s U.S.-Africa Business Center led a three-day executive delegation to Nairobi, Kenya, to coincide with the visit of U.S. Secretary of Commerce Gina Raimondo to Kenya on her first trip to the African continent. Secretary Raimondo joined a Chamber-organized dinner celebrating U.S.-Africa commercial partnerships that featured business leaders and officials from the U.S. and Kenya.
The mission focused on strengthening and deepening connections with business and government in Kenya and included the delegation’s participation in the AmCham Business Summit.
“The United States and Kenya have a vibrant and growing strategic partnership that is increasingly shaped by trade and investment, and business is at the forefront of driving these ties,” said Kendra Gaither, President of the U.S.-Africa Business Center. “We were pleased to bring a delegation to meet leaders and participate in the AmCham Business Summit—our third delegation to Kenya over the past year—to coincide with Secretary Raimondo’s visit and showcase the enthusiasm and commitment the private sector has for doing business in Kenya and in Africa.”
Kenya poultry farmers see losses in US deal hitting $1.28bn (The East African)
Kenya risks losing Ksh172 billion ($1.28 billion) annually if the proposal to import finished poultry products from the US under the ongoing Strategic Trade and Investments Partnership (STIP) negotiations goes through, players have warned.
The Poultry Breeders Association of Kenya (PBAK) — the lobby for breeders, hatcheries, and meat processors—claimed that the loss would come from a projected 75 percent reduction in demand for local poultry products. They said support industries in the value chain, including feed suppliers, breeders, processors, transport services, and agro vets would also be affected. “Allowing the USA traders access to Kenya will lead to the suffocation of Kenya’s emerging poultry sector,” said the lobby in a statement on Monday.
The Kenyan producers say they learned of the push for the US to export finished poultry products to Kenya under STIP at a forum the State Department of Trade convened.
Kenyan truck drivers face new danger in South Sudan (The East African)
Truck drivers plying the Nimule-Juba route into South Sudan are facing a new threat after a militia group circulated leaflets warning they won’t move without its permission or risk being shot. The leaflets are dated April 26 and attributed to a group calling itself People’s Freedom Movement (PFM) led by Philip Omon Bartholomeo, an upcoming rebel leader in South Sudan.
In the notice, the group said all pedestrians, cyclists, motorists, passengers and their buses as well as drivers of commercial trucks must stop using the highway immediately. “Your use of the highway and other roads entering Juba should come to hold with immediate effect as from the date of this notice,” the leaflet says, indicating any new movement of trucks along the highway is subject to PFM permission.
PFM’s actual demands are unknown, and neither is the group’s size or base. However, the leaflets add to the continual risk truck drivers, especially from Kenya and Uganda, face in supplying goods to South Sudan, a country that has faced militia and rebel problem since it gained independence in 2011.
Drought-stricken Zambia turns to Uganda for 0.5m tonnes of maize (The East African)
Lusaka banned the exports of maize grain and flour in February, following a prolonged dry spell that has adversely impacted the production of the crop in 84 out of the country’s 116 districts. Zambia is in talks with Uganda for a possible supply of more than 500,000 metric tonnes of maize to replenish its depleted reserves that have exposed more than two million people to starvation.
“The Government of Uganda has received an expression of interest for up to 500,000 MT of maize grain to be exported to Zambia. This has certain requirements including quality and available volumes to enable us to meet the export successfully,” the Uganda’s Ministry of Agriculture, Animal, Industry and Fisheries Permanent Secretary David Kasura-Kyomukama says through a letter dated March 25, 2024. “The purpose of this letter is to invite you to a stakeholders meeting to discuss the process and requirements for this opportunity.”
Zambia’s vulnerability assessment report (2023) projects over two million people to be food insecure spanning the period October 2023 to March 2024. Zambia, the second largest maize producing nation in Southern Africa after South Africa, declared drought a national disaster in February and introduced a state of emergency. This has put pressure on South Africa to supply its neighbouring countries with maize even when its own prospects do not look promising, according to the South African-based agricultural services firm AFGRI.
Kenya and Tanzania Veterinary Authorities resolve Poultry trade disputes (EAC)
In a landmark two-day meeting held at the East African Community (EAC) headquarters in Arusha, Tanzania, the Republic of Kenya and the United Republic of Tanzania have successfully addressed longstanding concerns regarding the export of poultry and poultry products between them.
In his remarks, Mr. Rabson Wanjala, Co-Chair of the meeting from Kenya, emphasised the critical importance of trade between the two countries, highlighting the necessity for ongoing consultations to streamline and facilitate trade processes. Mr. Wanjala said that both countries had committed to fostering trade relations, adding that the commitments made underscore the importance of collaborative efforts to ensure increased trade in the region.
Mauritius Telecom in talks for subsea cable to link Africa, Asia (Engineering News)
Mauritius’ top telecommunications company is in talks with operators including Reliance Jio Infocomm and Orange for a new undersea cable linking Africa, Indian Ocean islands and Asia, improving redundancy in region hit by breakdowns.
The new line named T4 will replace the South Africa Far East (SAFE) cable that’s coming to end of life in 2027, a quarter of a century after commissioning. T4 will have 1 000 times more capacity than the SAFE, according to Kapil Reesaul, chief executive officer of the Port Louis-based Mauritius Telecom.
“With so many cable breakdowns we are having, we want to secure the far east with a cable that will run from Mauritius to India and Singapore,” he said in an interview on Monday. The urgent need for additional cable infrastructure was highlighted by a disruption on Friday that impacted the Indian Ocean island nation. The hitch, which was resolved after five hours, was the latest problem after four cables were damaged near the Ivory Coast last month and three lines off the coast of Yemen that have remained offline since late February.
New World Bank Report Calls for Strengthening Resilience of Ghana’s Health System in Response to Climate Change (World Bank)
A new World Bank report released today, calls for urgent action to strengthen the resilience of Ghana’s health system against the adverse effects of climate change. The report, titled Climate and Health Vulnerability Assessment (CHVA) for Ghana, identifies gaps and risks to the country’s health sector, while recommending policy actions and providing valuable insights into capacity to adapt to climate related shocks.
According to the report, climate change in Ghana is causing extreme weather events like floods and droughts, leading to food insecurity, injuries, and the risk of death for 2 million people. The report notes that Ghana is highly vulnerable, especially to illness like malaria and diarrhea disease. It also points out that health issues related to heat, air pollution, and infectious diseases are on the rise with the elderly, youth, and children being particularly vulnerable.
“The World Bank has changed its mission to Ending extreme poverty and boosting shared prosperity on a livable planet. A healthy population is the cornerstone of prosperity. Therefore, implementing adaptation and mitigation measures is crucial not only to address current challenges but also to prevent further adversities,” said Robert Taliercio World Bank Country Director for Ghana, Liberia, and Sierra Leone. ”The Government of Ghana is ahead of the curve in thinking about the potential impacts of climate change on health and we encourage further work across sectors on this important challenge.”
Google opens applications for AI Accelerator Africa (ITWeb)
Google Africa has opened applications for the eighth edition of its Google for Start-ups Accelerator Africa programme. According to the internet giant, this year’s cohort will have a strong focus on start-ups leveraging artificial intelligence (AI) and machine learning (ML) to address critical challenges and unlock new opportunities across the continent.
The Google for Start-ups Accelerator Africa is a three-month, equity-free virtual programme that provides African start-ups with mentorship, technical resources and access to a global network of experts and investors. Since inception in 2018, the initiative has supported 106 start-ups from 17 African countries, which have collectively raised over $263 million and created more than 2 800 direct jobs, according to Google.
“We’re excited to support the next generation of African AI pioneers through the Google for Start-ups Accelerator, providing them with the resources and mentorship they need to build successful, impactful businesses,” says Folarin Aiyegbusi, head of Start-ups Ecosystem, Africa at Google. “Africa’s tech ecosystem is a hotbed of innovation, and AI has the potential to be a transformative force across various sectors.”
Vietnam chairs UNCTAD’s 14th session in Geneva (VOV.VN)
Ambassador Mai Phan Dung, Permanent Representative of Vietnam to the United Nations (UN), World Trade Organisation (WTO), and other international organisations at the session. The event featured the participation of representatives of all member countries, intergovernmental and investment promotion agencies, and non-governmental groups.
The meeting offered an opportunity in which member states and investment and development stakeholders can come together to discuss major and emerging issues related to investment, business, and technology. This is along with focusing on their impacts on the sustainable development process and exchanging views on effective solutions and policies for all parties to refer to.
The group of African countries reaffirmed the need for strategic and sustainable investment in the continent in order to address FDI fluctuations, as well as gaps which hold back the development of critical infrastructure. Representatives of the group of African countries also evaluated the important role of technology and digital trade in terms of helping countries to overcome barriers in attracting sustainable investment based on the three pillars of society, economics, and the environment.
Kenya Airways advocates for full AfCFTA implementation for trade promotion (Citinewsroom)
Kenya Airways Group Managing Director and CEO, Allan Kilavoka, has called for deeper collaboration among African countries to revive Ghana’s national carrier and create a more business-friendly aviation sector.
Kilavoka highlighted the importance of implementing the objectives of the African Continental Free Trade Area (AfCFTA) to promote trade and ease restrictions, such as visas and customs, that hinder connectivity between African countries. Kenya Airways is also planning to begin flying its Boeing 787 Dreamliner in June and is considering direct flights to Kumasi International Airport in Ghana. The CEO emphasized Ghana’s significance as an important market for Kenya Airways, expressing the company’s commitment to connecting businesses in the region and beyond.
Uganda tips EAC States on customs administration to grow trade (New Vision)
Uganda Revenue Authority (URA) has advised customs administrators to integrate with e-commerce players to facilitate the growth of trade in the East African region. URA commissioner for customs Abel Kagumire made the call while speaking at the Sectoral Committee of Customs meeting that was held at the East African Community (EAC) Secretariat in Arusha, Tanzania. The meeting brings together Commissioners of Customs from within the region.
“There is a need for Customs Authorities to integrate their systems with e-commerce players such as courier companies to adapt to the new trends and facilitate the growth of trade in the EAC,” Kagumire stated. He also urged them to continue engaging stakeholders and support capacity building. Kagumire’s call is considering the growing challenge of balancing the need for trade facilitation alongside increased revenue targets.
Reforms missing during EAC finance ministers’ agenda for IDA-21 summit (IPPMedia)
While each country in East Africa has had occasion to talk about reforms, there is no such thrust at the regional level as fiscal policy isn’t an East African Community item as such. It is only limited to the customs union and certain approved aspects of the common market, which are at times altered at a moment’s notice – like the free movement of goods, capital or labour.
It is this situation which is projected in running regional projects, as they are public sector-based and hugely dependent on foreign loans. Some say change is a must, for instance in the way in which the Lake Victoria Basin projects are designed and carried out. Finance ministers in the sub-region met under the auspices of the Kenyan Treasury in a pre-budget meeting tied with identifying regional priorities for collective consideration. This came as the International Development Association (IDA) readies for IDA-21 disbursement cycle.
Shippers Council calls for stakeholders collaboration to facilitate AfCFTA (Businessday NG)
Pius Ukeyima Akutah, executive secretary/chief executive officer, Nigerian Shippers Council (NSC), the Country’s ports economic regulator, has observed that realizing the full potentials of African Continental Free Trade Area (AfCFTA) will require collaboration from all stakeholders. Akutah, made the call in Aba, the commercial hub of Abia State, at a-day sensitisation seminar entitled “Unlocking the potentials of non-oil export, through participation in the African Continental Free Trade Area (AfCFTA): What stakeholders need to know”, organised by the Council’s South-East coordinating office.
The Shippers Council Chief Executive Officer, urged relevant authorities to prioritize trade facilitation measures, upgrade and streamline procedures to reduce delays and inefficiencies at ports and borders. He also stated that collaboration between public, private sectors is essential to promote investment, innovation and capacity building initiatives.
Climate shocks bring devastating drought to southern Africa’s doorstep (The East African)
Southern Africa was once a reliable source of food for the continent. Now, it is almost a basket case, with at least three countries on the brink of devastating famine following a severe drought in the just-ended planting season. The drought in the continent’s traditional breadbasket has been blamed on the El Niño climate phenomenon, described by the World Meteorological Organisation (WMO) as the worst on record.
Malawi, Zambia and Zimbabwe have now declared national disasters as a result of the El Nino-induced drought, which has devastated their food production and wiped out most of their staple crops. This is worrying because some countries, such as Kenya, Angola and the Democratic Republic of Congo, have relied on Zambia’s sugar and maize plantations to stave off their own food shortages.
FEWSNET said the region will struggle to import grain from within Africa and may have to look as far as South America for supplies this year. “The Southern Africa region is expected to have a supply gap for staple cereals following the expected below-average harvest,” reads the forecast.
African Union and World Bank Sign MoU to Deepen Collaboration on Africa’s Development (AU)
The African Union (AU) and the World Bank Group (WBG) signed a Memorandum of Understanding (MoU) with H.E. the AU Deputy Chairperson and Ms. Anna Bjerde, WBG Managing Director for Operations. This MoU will strengthen collaboration on existing and planned programs, focusing on three key priority areas: Energy Access and Just Transition, Health Systems Strengthening and Production of Pharmaceuticals in Africa, and Digital Transformation, Youth and Jobs.
The AU-WBG MoU emerged from a high-level meeting held on August 2nd, 2023, in Addis Ababa, Ethiopia, between AUC Chairperson H.E. Moussa Faki Mahamat and World Bank President Mr. Ajay Banga and their delegations, recommended developing a strategic framework for cooperation to serve as the foundation for a renewed partnership and guide collaborative efforts in specific areas.
In her opening remarks, AUC Deputy Chairperson, H.E. Monique Nsanzabaganwa, emphasized the importance of the AU-WBG MoU: “This signing marks a major step forward in realizing the shared vision of ‘The Africa We Want.’ It builds on our longstanding partnership with the World Bank, enabling a major scaling-up of development cooperation in three key priority areas: energy, health, and digital transformation. This focus on digital transformation will empower SMEs, women, and youth by creating new job opportunities, propelling Africa’s economic growth and social development. We are grateful to the World Bank for their continued partnership and commitment to supporting Africa’s progress.”
World Economic Forum Special Meeting: Africa Contributing to Shaping the Global Future Agenda (AU)
The World Economic Forum (WEF) convened a Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Kingdom of Saudi Arabia on 28-29 April 2024. Catalysing the energy transition was a central theme of the event and leading energy experts as well as dozens of energy ministers and commissioners from around the world were gathered to identify financial, technological and policy solutions aimed at scaling up the use of clean energy solutions while ensuring equitable growth.
Commissioner Abou-Zeid first spoke about the need for universal energy access in Africa and the importance of using all available resources to reach this end. Africa is not only rich with fossil fuels but also has the biggest premium solar potential in the world as well enormous geothermal and wind potential. She added that “Africa has already taken important steps to exploit this potential – Africa hosts the two biggest solar plants in the world in Egypt and Morocco” – but recognised that the need is still very big and that “more has to be done to achieve Africa’s ambitious goals”.
African Development Bank Group President Dr. Akinwumi Adesina urged for a coalition of public commitment and private sector finance to awaken Africa’s “staggering” agricultural potential, setting the stage for the continent to feed itself and contribute to global food security.
Adesina made his call during Monday’s World Economic Forum “Food and Water for All” panel discussion in Riyadh. He made an impassioned plea for greater cooperation between governments, public and private sector to transform agriculture production in Africa to allow it to “feed the world.”
During the panel, co-organized with CNN International, global leaders and experts agreed Africa has the land and water to achieve this lofty ambition but lacked significant investments and regulatory frameworks to properly develop abundant unused land and vast water resources.
Critical minerals, food crops at risk of climate disruption by 2050, report shows (Engineering News)
More than 70% of critical minerals needed for the transition to net zero emissions will be at risk from climate disruption by 2050, professional services firm PwC says. The firm’s latest report, titled ‘Climate Risks to Nine Key Commodities Report’, shows that the production of copper, cobalt and lithium minerals crucial for the clean energy transition could face significant or higher drought risk by 2050 under a high-emissions scenario. Currently, these critical minerals are only at a 10% risk.
The report also showed that food crops face significant risk. Under a high-emissions scenario, 90% of the world’s rice production could face significant heat stress by 2050, and more than 30% of maize and 50% of wheat could face significant drought risk by 2050. Taken together, these three crops account for 42% of the calories people eat. Currently, more than 75% of rice is grown in conditions of significant or greater heat risk, showing that it is not just the level of risk that matters, but also how well producers are prepared to adapt.
UN Zero hunger calls for Agricultural Transformation from within (Farmers Review Africa)
A panel of food security and agriculture development leaders agreed on key actions to improve the progress of African countries to end hunger and ensure agrifood system transformation. The proposed action points included – the need for better investments, improving infrastructure development, employing science and innovation in agriculture, building resilience to climate shocks, and reinforcing regional trade. The key priority areas were agreed upon at the Zero-hunger parallel session of the tenth African Regional Forum on Sustainable Development (ARFSD 10) on 24 March 2024 in Addis Ababa, Ethiopia.
Moderating the panel discussion, Chimimba David Phiri, the Food and Agriculture Organization of the United Nations (FAO) Special Adviser to the Assistant Director-General and Regional Representative for Africa, stressed the role of increasing productivity in the agrifood system.
”According to the African Union Fourth Biennial Review of Malabo Commitments, none of the countries in Africa are on track to reach zero hunger by 2025. Meanwhile, land use planning indicates that Africa cultivates more than double the land area of the European Union, and yet, owing to low productivity, we are net food importers, including from the same European Union countries. We must also adopt a multi-sectoral and holistic approach to food security and agriculture initiatives to transform agri-food systems,” he added.
African food systems essential for improved food security (The Exchange Africa)
Africa, a continent of great potential, stands at a crossroads. Africa has most of the world’s most fertile lands, immense resources, and a growing young population. However, it remains paradoxically entangled in the danger of food insecurity and malnutrition. Challenges such as climate change, post-harvest losses, poor farming technologies, and inadequate supply chains persist. The urgency to change African food systems is not solely an agricultural or economic imperative but a moral, social, and ecological one.
Empowering Africa Food Systems for the Future encompasses ways Africa is uniquely structured to change its future and pave a sustainable and resilient trajectory for future generations.
Although African nations may produce or import enough food to provide adequate average energy per person, energy alone cannot ensure a nourished population. Poor nutrition in staple foods contributes to prevailing malnutrition in all its forms. Africa is confronted with a heavy crisis of malnutrition, poverty, inequality, and unemployment. Food affordability and access are unevenly distributed, and gaps widen even further.
In many African nations, a significant fraction of the population depends on agriculture for survival. Transforming agriculture and food systems is thus a necessary solution for addressing the challenges. To accomplish this, there is a greater need to deliver the main goals of the African agriculture and food security agenda: economic opportunities, poverty reduction, and shared prosperity.
The second meeting for the Steering Committee of the Food and Agriculture Organization of the United Nations (FAO) on the implementation of One Country One Priority Product (OCOP) initiative held today, took stock of the major results achieved, discussed current priorities and next steps.
To date, 85 Members from all five FAO Regions – Africa, Asia and the Pacific, Europe and Central Asia, Latin America and the Caribbean, and the Near East and North Africa – have expressed strong interest in promoting the sustainable development of the value chains of 54 Special Agricultural Products (SAPs), including 28 horticultural and 15 field crops, 6 livestock products and 5 forest products.
Launched in September 2021, the initiative helps countries tap into the unlocked potential of identified Special Agricultural Products (SAPs), which are locally known and underutilized agrifood products that have the potential to be launched in more stable regional and international markets. By promoting sustainable production and marketing of SAPs, the initiative aims to foster better access to healthy diets, contribute to the livelihoods of small-scale and family farmers, and reduce environmental and social impacts, in line with FAO’s Strategic Framework 2022-31.
See also: FAO presents World Food Forum 2024 (FAO)
Aid for Trade Global Review to discuss trade mainstreaming, food security, connectivity (WTO)
The discussions will also shed light on the latest financing needs and how the international community can help developing economies - including LDCs - benefit from further trade opportunities and build a better future for their people. The event will also see the release of “Aid for Trade at a Glance 2024”, a co-publication of the WTO and the Organisation for Economic Co-operation and Development.
Energy transition at centre of discussions in environment committee and thematic session (WTO)
On 23 April, members held a second CTE thematic session titled “Trade Contributions to Energy Transition Efforts concerning Climate Adaptation and Mitigation.” The United States and Kenya, co-facilitators of the session, said in their report back to the Committee that members benefited from the expertise provided in the session’s two panels. The first panel explored the trade landscape of rapidly evolving areas of clean energy, including hydrogen and wind energy, while the second looked at how different trade-related climate measures can support the clean energy transition. Further discussions highlighted the diversity of approaches and policies that countries are using.
Seaweed holds huge potential to bring economic, climate and gender benefits (UNCTAD)
Seaweed, a versatile marine macroalgae, can immensely contribute to climate action, food security and gender equality, according to a recent UN Trade and Development study entitled “An ocean of opportunities: The potential of seaweed to advance environmental and gender dimensions of SDGs.”
But it’s often overshadowed by fisheries and aquaculture sectors, leading to an underestimation of its economic importance, particularly for women.
“Seaweed has superpowers. It can advance several sustainable development goals at a time – economic empowerment of women and food security while helping to tackle the triple environmental crisis of climate change, biodiversity loss and pollution,” said Chantal Line Carpentier, head of the trade and environment branch at UN Trade and Development.
Quick links
UK-Morocco renewable energy link plan gets $10.2m boost (Engineering News)
Better Cotton, in collaboration with African Export-Import Bank (Farmers Review Africa)
UN General Assembly informal interactive dialogue on commodity markets (UNCTAD)
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NCOP approves Climate Change Bill (Engineering News)
The National Council of Provinces (NCOP) has approved the Climate Change Bill. “The Climate Change Bill will provide the much-needed legal framework to regulate activities that contribute to climate change; ensure an effective response in all spheres of government and by society at large; ensure a just transition; and maximise the opportunities afforded to our economy by the global shift to a green economy,” says Forestry, Fisheries and the Environment Minister Barbara Creecy.
“The NCOP’s approval of the Climate Change Bill is a landmark in our response to climate change. Since 2011, when we outlined South Africa’s response to climate change in our National Climate Change Response White Paper, we have been putting in place the instruments for an integrated response.
The Bill is expected to shortly become law, with the assent of the President.
Rail Reform In South Africa: Progress And Challenges (Railways Africa)
A brief discussion on the future of rail transport in South Africa with Ngwako Makaepea, Deputy Director General of Rail Transport, during the PRASA celebration in Cape Town on 23 April 2024.
Ngwako highlights the Department of Transport’s commitment to advancing rail reform, emphasising the importance of laying down foundational building blocks for a robust system. He discusses key initiatives such as the freight logistics roadmap and the establishment of the Transnet Infrastructure Manager.
Ngwako further explores the significance of private sector participation in rail projects, detailing the department’s collaboration with stakeholders to ensure a conducive framework for investment. Despite challenges and delays, he remains optimistic about the progress of rail reform and the adoption of private-sector participation frameworks.
Ngwako reflects on the broader regional impact of rail connectivity, highlighting initiatives to enhance interoperability and collaboration with neighbouring countries within the SADC region. He reiterates the transformative potential of rail infrastructure, not only in enhancing domestic mobility but also in strengthening regional ties and fostering economic prosperity across borders.
De Beers Group to relocate Auctions headquarters from Singapore to Botswana (De Beers Group)
De Beers Group today [25 April 2024] announced it is relocating the De Beers Group Auctions business headquarters from Singapore to Botswana. The relocation supports De Beers’ focus on streamlining its operations and enhancing the efficiency of its activities, while also facilitating further development of the diamond sector in Botswana.
De Beers Group’s decision to relocate its Auctions headquarters to Gaborone reinforces its commitment to developing Botswana’s diamond industry. It also reflects confidence in the country’s capabilities and growth agenda. De Beers Global Sightholder Sales moved from the United Kingdom to Botswana in 2013, and has now operated successfully in Gaborone for more than a decade. The move of the Auctions business headquarters will enhance efficiency, strengthen partnerships, and support the development of key diamond industry skills in Botswana.
As the relocation process takes place over the coming months, De Beers Group Auctions will be pausing operations and sales events until the move has been completed to support a smooth transition process and to ensure that customers continue to receive the high level of service that they expect.
In a significant step to advance food security in Kenya, the Africa Fertilizer Financing Mechanism has launched a project that will help deliver nearly 8,000 tons of fertilizers to 100,000 smallholder farmers, boosting harvests and incomes.
Through its Fertilizer Financing for Sustainable Agriculture Management Project, the Mechanism will provide a $2 million partial trade credit guarantee and a grant of $219,000 to Apollo Agriculture Limited(link is external), a Kenyan corporation, to facilitate the company’s fertilizer sales.
Land-Linked Zambia Event Highlights Zambia’s Railway and Transport Vision for Regional Integration (Railways Africa)
During the Land-Linked Zambia event held on April 4-5, 2024, Honourable Frank Tayali, Zambia’s Minister of Transport and Logistics, outlined the nation’s ambitious plans to become a central transport hub in Southern Africa. The conference, themed ‘Connecting Zambia by Land,’ brought together industry experts to discuss enhancing trade, investment, and the seamless movement of goods and services across Zambia and beyond.
Minister Tayali highlighted the strategic development of key transport corridors that include the Walvis Bay-Ndola-Lubumbashi Corridor, the Lobito Corridor, the Nacala Corridor, the North-South Corridor, the Beira Corridor and the Central Corridor. These corridors are pivotal in transforming Zambia into a land-linked nexus, leveraging its rich resources and strategic location to boost regional connectivity.
Minister Tayali emphasized the importance of regional cooperation, noting recent meetings with representatives from Mozambique, Malawi, and Namibia to tackle trade and logistical challenges, particularly along the Nacala Corridor. These discussions are crucial for addressing infrastructure needs and regulatory harmonization to foster a conducive environment for trade.
Ministry posts over 287 mln USD minerals export (Ethiopian Press Agency)
The Ministry of Mines revealed that 287. 28 million USD was secured from minerals export during the last nine months of the current fiscal year. Mines State Minister Million Mathewos told the Ethiopia Press Agency (EPA) that a plan was set to earn 387.28 million USD from minerals export for the reported period while the performance achieved 74.11 percent of the target.
According to him, 3.023 tons of gold, 69.79 tons of tantalum, 11,176.4 of lithium ore, 100.563 tons of ornamental minerals and 32, 141.65 tons of industrial minerals were exported to the foreign market during the nine months. The income was made by supplying over 43,491 tons of minerals to the foreign market. This current revenue surpassed that of the past year same period by 114.19 million USD.
Tunisia: Trade deficit shrinks 4.16% to TND 1,540.1 million in March 2024 (TAP)
The monthly trade deficit shrank 4.16% in March to TND 1,540.1 million compared to the previous month, reads the National Institute of Statistics (INS) monthly report on Foreign Trade at Current Prices, March 2024. Exports posted a third consecutive monthly fall in March, down 1.3% compared to February. This was due to a drop in exports in several sectors, except for the energy sector, currently recovering after three months of continuous decline. However, exports in the energy sector edged up again after three months of continuous decline, posting a noteworthy rise of 196%. The mining, phosphates and by-products sector rose by 42.9%.Imports fell by 2% in March 2024. All product groups contributed to this fall, with the exception of energy products.
Sudan gold revenues ‘unaffected by war’ (Dabanga Radio TV Online)
Although the war between the Sudanese army and Rapid Support Forces (RSF) has continued since mid-April of last year, gold exports have allegedly not stopped or been affected by the war. In interviews with Radio Dabanga, one economic analyst called for further regulation of gold exports, while another was sceptical about the reports given the current situation in Sudan.
At the end of last week, the Sudanese Mineral Resources Company announced a gold export report in the first quarter of this year which generated revenue exceeding $428 million for the Central Bank of Sudan (CBoS). These revenues did not reduce the rise in the price of the US dollar against the Sudanese pound, which continues to decline without any state control, and have a negative impact on livelihoods.
According to expert and economic analyst Mohamed El Nayer, this is a good thing. “If Sudan continues to export gold at the same rate, CBoS could make over $2 billion by the end of the year,” which will have a positive impact on the exchange rate. In 2022, gold exports exceeding $2 billion per year made up over 50 per cent of all exports from Sudan. According to the World Gold Council, that year Sudan was the world’s 16th-largest gold producer and the fourth-largest gold producer in Africa.
The economic expert pointed out that rationalising imports could also reduce Sudan’s trade deficit. He suggested stopping the import of non-essential goods, “given that the situation does not require importing all goods.”
Traders worry over rising extortion on Nigeria-Benin border (Daily Trust)
Traders, clearing agents and drivers have expressed concerns over the proliferation of checkpoints mounted by security operatives on the Seme Border-Mile 2 corridor. They alleged that many of the “illegal” checkpoints were mounted to extort them, a situation they said was stifling their businesses. The Seme-Mile 2 corridor is a major route that links Nigeria with neighbouring Benin Republic and other countries. Thousands of Nigerians and visitors from the two countries transact businesses along this corridor on daily basis.
The Comptroller-General of the NCS, Bashir Adewale Adeniyi, had, during his first visit to the Seme Border last year, assured the business community that the Service will look into the proliferation of the checkpoints. The Customs boss had, during his opening remark at the National Trade Facilitation Committee (NTFC) stakeholders retreat held in Lagos last September, admitted that stopping at several checkpoints along the route was causing impediments to facilitating trade. He however stated that the Service had reduced the number of checkpoints in the corridor from 60 to three, in order to ease business.
President Ruto: Agricultural Innovation Key to Poverty Reduction (Ventures Africa)
Agricultural innovation and technology remain key to poverty reduction, President William Ruto has said. The President pointed out that innovation has the potential to introduce economies to the possibilities of the digital economy and increase intra-Africa trade, thus accelerating regional integration. With innovation, he said, barriers become bridges, borders transform into portals and challenges turn into opportunities.
President Ruto made the remarks during the Zimbabwe International Trade Fair held in Bulawayo where he was the chief guest.
A Big Win for East Africa with the Inclusion of Open Science in the EAC STI Policy (EAC)
The 3rd East African Community (EAC) Regional Science, Technology, and Innovation (STI) Conference, held from 6 to 8 March, 2024 in Nairobi, Kenya, marked a significant milestone for the region with the launch of the pdf East African Regional Science, Technology and Innovation Policy 2023-2033 (9.27 MB) and the East African Regional Intellectual Property (IP) Policy 2023-2033.
Setting this achievement apart, is the inclusion of Open Science principles and guidelines in the new policy framework. This marks a first for the region and Africa and is set to unlock the full potential of scientific research and drive sustainable development across East Africa.
This historic achievement was the culmination of concerted efforts by a strategic partnership between the Training Centre in Communication (TCC Africa), Public Library of Science (PLOS), and the East African Science and Technology Commission (EASTECO). The collaboration began in 2022, with the shared vision of promoting Open Science principles and practices and empowering researchers across the EAC Partner States.
ECOWAS participates in high-level workshop on regional integration (ECOWAS)
The Economic Community of West African States (ECOWAS) is participating in the “High-Level Workshop on Regional Integration”. This hybrid workshop, organised both physically and virtually, kicks-off in Kasane, Botswana from Sunday 28 April 2024 and extending through Tuesday 30 April 2024 and is under the theme “43 Years of Regional Integration: Where are we and way forward”.
The primary objective of the workshop is to cultivate a deeper understanding, foster better collaboration, and coordinate regional integration efforts to advance the Southern African Development Community (SADC) Regional Integration Agenda.
Women urged to take advantage of AfCFTA (Graphic Online)
The Namibian High Commissioner to Ghana, Ambassador Selma Ashipala-Musavyi, has called on women entrepreneurs in Africa to leverage opportunities in the African Continental Free Trade Area (AfCFTA) to export their products beyond the borders of their countries.
Ambassador Ashipala-Musavyi further encouraged networking among businesses across the continent, especially among women. She underscored the critical role of women in promoting sustainable livelihoods and called for more partners to support to help them to develop their entrepreneurial skills to increase production.
Touching on the AfCFTA protocol, she said “It’s a platform for us to learn from each other. It speaks to Africa’s unity because no one country can basically succeed on her own. So we need to network and to learn from each other. We are facing challenges in trade, common challenges and we need to learn from one other”.
The High Commissioner also emphasised that “If we do not network, if Ghanaian women for example do not go to Namibia and see what is in Namibia, and our women don’t come here (Ghana), we are not going to be successful in trading. So we need to get out of our comfort zones, learn about the continent, what it is that the continent has to offer and harness our strength and see how we can move the continent forward”. She also called for a regional sensitisation of the protocol to enhance cross border trade.
Agoa to be expanded to all of Africa and extended to 2041 (The East African)
The US Congress has put forward proposals that would see the African Growth and Opportunity Act (Agoa) extended to 2041.Senators Chris Coons of Delaware and James Risch of Idaho last week introduced the bipartisan Agoa Renewal and Improvement Act of 2024, which would see Agoa cover 54 African countries. The extension is expected to integrate Agoa with the African Continental Free Trade Agreement (AfCFTA) to support the development of intra-African supply chains.
Speaking in Nairobi during the fourth edition of the regional American Chamber of Commerce Kenya (AmCham) business summit, US Secretary of Commerce Gina Raimondo said the plans to extend Agoa were on course. “President Biden and our administration have made it a priority to renew Agoa. It is the decision of the US Congress, so we have to work with some of the members,” Ms Raimondo told The EastAfrican. Coons and Risch’s proposed update would push Agoa beneficiaries to increase their exports under the agreement.
“This bipartisan bill aims to refine Agoa’s eligibility criteria, increase transparency, and hold US agencies accountable for their advice to the president,” Senator Risch said. The proposed bill will require an Agoa Forum to be held annually no later than September 30.
African Leaders Unveil Bold Transformation Agenda at Summit, Backed by Powerful New Coalition (World Bank)
In a historic show of unity, 19 African Heads of State assembled at a major summit committed to focusing development aspirations across the continent. This ambitious agenda, aiming to dramatically improve lives and create new opportunities, positions the World Bank’s International Development Association (IDA) as a cornerstone for success.
Beyond pronouncements, the summit witnessed the birth of a significant partnership—a coalition uniting civil society, foundations, the private sector, and young people. The new coalition will champion a robust and ambitious replenishment of IDA’s resources, fueling Africa’s development engine.
A post-summit communique detailed leaders’ unwavering commitment to strengthen governance, unlock private sector potential for job creation, mobilize domestic resources, and deliver on climate change promises. Additionally, they prioritized increased energy and digital access, alongside enhanced resilience to climate change and conflict.
African Development Bank Group President Dr. Akinwumi A. Adesina has emphasized the critical need for significantly increased financing to meet the Sustainable Development Goals (SDGs). Speaking at the Islamic Development Bank’s 50th anniversary celebrations in Riyadh, he highlighted a growing annual financial shortfall of $4 trillion, a gap that threatens to derail efforts to achieve the SDGs by 2030.
African Development Bank President said the current annual gap of $4 trillion, up from $2.5 trillion in 2015, has been propelled by recent global economic pressures and the lingering impacts of the Covid-19 pandemic. He detailed the critical role of multilateral development banks in addressing these needs through increased collaboration and innovative financial solutions.
In his call to action to achieve the ambitious goals set forth by the 2030 Agenda for Sustainable Development, Adesina said, “the call by the UN Secretary General for a $500 billion per year SDG stimulus package should be fully supported.” “The developed countries need to increase support by devoting at least 0.70% of their gross national income to official development assistance,” Adesina added, among other critical actions.
Global Economy will Require $15tn to Finance Long-Term Solutions, Sustainable Infrastructure Projects, Says IsDB President (This Day Live)
The President of the Islamic Development Bank (IsDB), Dr. Muhammad Al Jasser, has stated that the global economy will require $15 trillion to finance long-term solutions and sustainable infrastructure projects. Al Jasser stated that the world needs long-term solutions, and sustainable infrastructure projects, stressing that financing these projects requires a paradigm shift. He also stated that estimates suggest a staggering $15 trillion infrastructure financing gap by 2040.
Speaking at a side event with the theme: “Leveraging Islamic Finance for Developing Sustainable and Resilient Infrastructure at the 2024 IsDB Group Annual Meetings,” Al Jasser, noted that the traditional public financing mechanisms fall short of meeting the growing demand for infrastructure projects. He revealed that to address these challenges and mobilise sufficient funding for long-term investments, there is a need for a fresh approach, adding that this is where Islamic finance emerges as a ray of light.
“We stand at a crossroads. COVID-19 exposed vulnerabilities in infrastructure, draining public resources and reversing development progress. One-third of least-developed countries are now worse off than pre-pandemic. Without immediate action, their development outlook could further deteriorate. “Least-developed countries hold tremendous economic potential waiting to be unleashed. Boosting investments in social and physical infrastructure is key to reducing poverty, enhancing health and education, and creating jobs. It also strengthens resilience against future shocks, such as pandemics and climate change.”
Iran, Africa explore a sea of economic opportunities (Tehran Times)
In a remarkable gathering of diplomatic and economic significance, Tehran, the bustling capital of Iran, plays host to a congregation of economy ministers representing over 40 African nations at the esteemed second Iran-Africa International Summit, slated from April 26th to 29th.
In his address at the opening ceremony, President Raisi expressed Iran’s unwavering commitment to fortifying economic ties with the African continent. President Raisi envisaged a future where the fruits of Iranian productivity in agriculture, industry, medicine, and healthcare could find resonance in African markets. “Our agricultural produce, industrial output, and medical advancements stand poised for export to Africa,” he affirmed, echoing Iran’s proactive engagement on the global economic stage.
“Even amidst the tempest of Western sanctions and disruptions, Iran has stood in solidarity with the peoples and nations of Africa,” President Raisi asserted, highlighting Iran’s enduring commitment to fostering constructive partnerships.
Interview: UNECA expects more Chinese, other foreign investments in developing Africa’s EV industry (Xinhua)
China and other foreign investors are welcome to partner with local companies to develop Africa’s budding electric vehicle (EV) industry, a senior official from the United Nations Economic Commission for Africa (UNECA) has said.
Although there is some distance to go for Africa in terms of EV productive capacity and supportive ecosystem, Africa has begun exploring opportunities and taking significant steps in this regard, leveraging its vast green mineral resources that are key inputs into EVs, Eunice Kamwendo, director of the UNECA Sub-Regional Office for Southern Africa, told Xinhua in an interview Thursday.
“The joint Democratic Republic of Congo (DRC)-Zambia Batteries for Electric Vehicles Initiative is a case in point which seeks to build productive capacities for EV manufacturing in the two countries starting with production of sulphates and precursors for lithium-ion batteries for EVs,” Kamwendo said in her e-mailed response to Xinhua from Zambia where UNECA Sub-Regional Office for Southern Africa is located.
Harnessing Sub-Saharan Africa’s Critical Mineral Wealth (IMF)
From electric vehicles to solar panels to future innovations, the global transition to clean energy is set to further heighten demand for critical minerals. Between 2022 and 2050, demand for nickel will double, cobalt triple and lithium rise tenfold, according to the International Energy Agency. With sub-Saharan Africa estimated to hold about 30 percent of the volume of proven critical mineral reserves, this transition—if managed properly—has the potential to transform the region, the latest Regional Economic Outlook reports.
Sub-Saharan Africa is already at the center of global critical mineral production. The Democratic Republic of Congo accounts for over 70 percent of global cobalt output and approximately half the world’s proven reserves. South Africa, Gabon and Ghana collectively account for over 60 percent of global manganese production. Zimbabwe, alongside the Democratic Republic of Congo and Mali, hold substantial but yet-to-be-explored lithium deposits. Other countries with significant critical mineral reserves include Guinea, Mozambique, South Africa, and Zambia.
With growing demand, proceeds from critical minerals are poised to rise significantly over the next two decades. Global revenues from the extraction of just four key minerals—copper, nickel, cobalt, and lithium—are estimated to total $16 trillion over the next 25 years, in 2023-dollar terms. Sub-Saharan Africa stands to reap over 10 percent of these cumulated revenues, which could correspond to an increase in the region’s GDP by 12 percent or more by 2050. Given the volatile nature of commodity prices and the unpredictability over the future direction of technological innovation, these estimates have a high degree of uncertainty—but the general direction is certainly encouraging.
The region can generate even greater windfalls by not only exporting raw materials but processing them as well. Raw bauxite, for instance, fetches a modest $65 per ton, but when processed into aluminum it commands a hefty $2,335 per ton, in end-2023 prices. Yet the thousand trucks a day that carry unprocessed lithium from Zimbabwe to ports for shipping to China show that local processing options for critical minerals are too often limited.
Related: EAC’s ‘fragile’ states set for fastest GDP growth (The East African)
The International Monetary Fund (IMF) has named South Sudan, Burundi and the Democratic Republic of the Congo as the East African Community (EAC) member states poised for the quickest economic growth trajectories in the 2024-2025 period. This, is despite the three being the most conflict-stricken in the region.
The IMF’s latest regional economic outlook report for Sub-Saharan Africa published last week forecasts a 1.2 percent gross domestic product (GDP) growth for South Sudan, from 5.6 to 6.8 percent, even as it grapples with economic disruptions and humanitarian support problems caused by the war in neighbouring Sudan.
GDP growth across the region is projected to hit 4.0 percent in 2025, after rising from 3.4 percent in 2023 to 3.8 percent in 2024, and two-thirds of the countries anticipate further growth in 2025.The report, however, warns that risks remain as governments continue to grapple with financing shortages, high borrowing costs and impending debt repayments.
Africa’s youth urged to advocate for multilateralism to secure a better future (UNECA)
Young people should participate in the reform of the United Nations system to deepen global cooperation and protect their interests, the Assistant Secretary-General of Youth Affairs, Felipe Paullier, has said. In a keynote address at the African Youth Consultative Forum on the UN Summit of the Future 2024 held in Addis Ababa, Mr. Paullier said the youth must be part of the discussion process in the countdown to the Summit of the Future because multilateralism augurs well for youth inclusion in securing a better future.
Describing the Summit of the Future as an opportunity for transformation in the UN system and the future of the youth, Mr. Paullier said the world needs a different multilateral system because ‘we are not going to be able to address the challenges of our grandchildren if we continue to work with a system that was designed by our grandparents’.
Related: ECA’s Claver Gatete urges youth to raise their voice in shaping Africa’s development (UNECA)
Customs software upgrade set to bolster trade for developing countries (UNCTAD)
ASYCUDA, which provides an integrated and automated system for customs data, is the largest technical cooperation programme run by UN Trade and Development (UNCTAD).New features of the ASYCUDAWorld software are up and running, helping enhance risk management, customs data gathering and compatibility with external systems, while further reducing paper use.
“The latest version of ASYCUDAWorld brings cutting-edge IT capabilities to make international trade more reliable and secure,” says Shamika N. Sirimanne, director of technology and logistics at UN Trade and Development. “The upgrade complies with international standards, follows best practices, and was made in collaboration with user countries,” Ms Sirimanne adds.
For more than 40 years, the ASYCUDA programme helps digitalize and expedite customs clearance processes across over 100 user countries, including many of the world’s most vulnerable economies. The ASYCUDAWorld software is already live in 38 least developed countries, 23 landlocked developing countries, and 41 small island developing states. Countries that have implemented ASYCUDAWorld can have 100% of their cross-border trade transactions processed through the system.
Creating credible carbon market in Africa (Africa Renewal)
Carbon markets are trading systems in which carbon credits are sold and bought. Companies or individuals can use carbon markets to compensate for their greenhouse gas emissions by purchasing carbon credits from entities that remove or reduce greenhouse gas emissions. One tradable carbon credit equals one tonne of carbon dioxide, or the equivalent amount of a different greenhouse gas reduced, sequestered or avoided. When a credit is used to reduce, sequester, or avoid emissions, it becomes an offset and is no longer tradable.
Quick links
How low income earners battle for survival amidst rising inflation (Daily Trust)
At the Threshold: The Increasing Relevance of the Middle-Income Trap (IMF)
Integrating trade facilitation into climate strategies (Barbados Today)
The Pitfalls of Protectionism: Import Substitution vs. Export-Oriented Industrial Policy (IMF)
WTO members review safeguard actions during latest biannual committee meeting (WTO)
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US official announces business partnership with Kenya (Voice of America)
About 1,300 delegates and 400 companies participated in the fourth American Chamber of Commerce summit in Nairobi, Kenya, where Kenya’s president William Ruto says his country is ready for business – and means business. U.S. Secretary of Commerce Gina Raimondo announced a partnership “to harness artificial intelligence, facilitate data flows and empower digital upskilling with Kenya.” The partnership, she said, is the first of its kind with an African nation to promote the safe development and deployment of AI. In addition, seven private-sector deals on digital transformation and commitments were made involving companies including the NBA, CISCO, Pfizer, and Qualcomm. Two new grants by the U.S. Trade and Development Agency were announced to expand semiconductor fabrication in Kenya and the construction of a fiber network along the railways.
Coca Cola’s Namibia recycling partnership turns bottles into brighter futures (Engineering News)
An investment of more than $1.2-million through a partnership between Coca-Cola Beverages Africa (CCBA) and plastic packaging company Plastic Packaging has culminated in the opening of a new polyethylene terephthalate (PET) flaking plant in Okahandja, Namibia. The plant is expected to double the capacity of the only mechanical recycler of plastic waste in the country.
“The Coca-Cola system aims to drive systemic change through a circular economy for packaging. We are leading the industry to help collect and recycle a bottle or can for every one we sell by 2030,” said CCBA chief public affairs, communication and sustainability officer Tshidi Ramogase. “We have a responsibility to help solve complex plastic waste challenges facing our planet and society, and we’re leveraging our scale and reach to achieve our sustainability goals and reduce packaging waste.”
Fuel tax blocks aid to hunger-ravaged South Sudan, UN says (The East African)
South Sudanese authorities are holding up United Nations fuel tankers over a tax dispute, jeopardising the delivery of millions of dollars of aid during a humanitarian crisis, the UN mission there said. The trucks were held up at depots and the Ugandan border on Wednesday despite assurances from the minister of Humanitarian Affairs a day earlier that a new tax on trucks carrying fuel and other supplies did not apply to UN humanitarian operations, a spokesperson for the mission said. The Trade Ministry order this week, announcing the tax, said the $300 charge on each goods truck entering and leaving the country was intended to help the government maximise revenue collection by addressing undervaluation and fraud.
“As of now, the trucks are still held up. The mission is continuing to engage intensively at the highest levels to resolve the situation,” Priyanka Chowdhury, acting spokesperson for the mission, known as UNMISS, told Reuters.
DRC returns Chinese firm’s mineral shipments with high radiation levels (The East African)
Mineral shipments from a Congolese copper and cobalt operation majority-owned by China’s Zijin Mining Group Co Ltd were returned due to overly high radiation levels, the Congolese Mines minister said in a letter seen by Reuters on Monday. The letter, dated April 12, informed the COMMUS project in which Zijin owns a 72 percent stake that the ministry had suspended its licence while it investigated the issue.
“I am informed of the return of your shipments that exported ... mineral products to South Africa on the grounds that their radioactivity content exceeds the regulatory threshold,” Mines Minister Antoinette N’Samba Kalambayi said in the letter. COMMUS, based near Democratic Republic of Congo’s southern city of Kolwezi, produced 129,000 tonnes of copper and about 2,200 tons of cobalt in 2023, ministry data shows.
A separate internal directive by the ministry, seen by Reuters, outlined what steps its investigation would take. These include verifying COMMUS’ compliance with export procedures and assessing what risks the presence of radioactive materials might have posed to the export chain.
Malawi Ratifies the Tripartite Free Trade Agreement (COMESA)
Malawi has ratified the Tripartite Free Trade Agreement, bringing the total number of state that have done so to 12. Now, only two are remaining to reach the requisite threshold of 14 to enable the agreement to enter into force. The ratification instrument, signed by Malawi Minister of Foreign Affairs, Hon Nancy Tembo was delivered to the office of the Secretary General of COMESA, Chileshe Mpundu Kapwepwe, on 23 April 2024.
The Tripartite FTA is an inter-regional co-operation and integration arrangement amongst countries of the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC). To date, 22 Member States have signed the TFTA Agreement, and 12 have ratified it. These are Egypt, Uganda, Kenya, Rwanda, Burundi, Eswatini, Botswana, Namibia, South Africa, Zambia, Zimbabwe and Malawi.
The Tripartite FTA was launched in June 2015 in Egypt to enhance integration among the Tripartite Member/Partner States for their mutual benefit and to pursue the development of common programmes which will enable all parties to utilise the available resources effectively. In addition, it is intended to harmonise trade and investment regimes and in particular to establish a Free Trade Area amongst COMESA, EAC and SADC; enhance inter-REC economic cooperation.
Build robust system to reap benefit of AfCFTA – Prof. Boateng urges African countries (Graphic Online)
The Board Chairman of the Mineral Income Investment Fund (MIIF), Professor Douglas Boateng, has stressed the need for African countries to build a robust supply chain system to enable the continent to reap the full benefits of the African Continental Free Trade Area (AfCFTA). He said although the agreement was made to ensure the free movement of goods and services, it had not been achieved due to a lack of supply chain management.
“Free movement is critical to supply chain management and I think that the barriers and the silo thinking within the continent must discontinue so that goods can move across freely,” he said. Prof. Boateng was speaking in Accra yesterday at the Women in Supply Chain Forum which was held on the theme: “Unlocking Growth Through Integrated Supply Chain Management; A Personal Catalyst.”
Aviation Experts Identify Barriers to Intra-African Trade, AfCFTA Implementation (This Day Live)
At the 2024 MRO Africa Conference held in Addis Ababa, Ethiopia, from April 23-25, stakeholders acknowledged that air transport as catalyst for economic development is the bedrock that would buoy and enhance trade and tourism; when there is free movement of people across nations with liberalised inter-state movement.
“So, we need to create an environment to develop the traffic, the affordability of fares. That is why the single African Air Transport Market (SAATM) is important, also the African Continental Free Trade Area. If there is no activity between countries, it is difficult for an airline to open a route. And also, we are seeing still some visa restrictions between African countries. This also should be solved. And I think African airlines also are not cooperating much. We have commercial agreement. This is something which needs to be changed,” Secretary General of African Airlines Association (AFRAA), Mr. Abdelrahmane Berthe, said.
Brazil signs Lusophone Compact agreement to boost private sector in Africa (AfDB)
Brazil has officially joined the Lusophone Compact, an initiative working to accelerate private sector development in Portuguese-speaking countries in Africa, known as the PALOPs (Angola, Cabo Verde, Equatorial Guinea, Guinea-Bissau, Mozambique, São Tome and Príncipe). The country’s minister for Planning and Budget Simone Tebet signed a Memorandum of Understanding with the president of the African Development Bank Group Dr Akinwumi Adesina on Monday 22 April in the capital Brasilia. The memorandum was also signed by ambassadors present from Portugal and Portuguese-speaking African countries.
Data is essential to debate women’s participation in foreign trade (G20 Brasil 2024)
Female participation in international trade is still insignificant. Women-led companies are less likely to access foreign markets and benefit from these opportunities. According to the International Trade Center (ITC), women own only around 20% of exporting companies in the world. That is why G20 members have emphasized in recent years the need to accelerate progress towards inclusive international trade that involves initiatives to boost women’s participation.
According to Tatiana Prazeres, Foreign Trade Secretary at the Ministry of Development, Industry, Trade and Services (MDIC), in general, the vast majority of G20 member countries measure the participation of women in the economy. Notably, however, most of them do not have disaggregated data on women’s participation in international trade. The term disaggregated data refers to the separation of information collected into smaller units to reveal underlying trends and patterns. They can identify, for example, the sex, race, or age of certain population groups to measure participation in foreign trade.
African ministers and senior officials at the tenth session of the Africa Regional Forum on Sustainable Development (ARFSD-10) are calling for timely reform of the global financial institutions and architecture for sustainable development and financing for development in Africa. This they say is the unified African message to the Summit of the Future to be held in September 2024 in New York. The message, which comprises commitments aligned with Africa’s priorities is to be delivered as part of the planned pact of the future to be delivered at the Summit.
In their declaration on the effective delivery of sustainable, resilient and innovative solutions to reinforce the 2030 Agenda and Agenda 2063 and to eradicate poverty in times of multiple crises released at the closing of ARFSD-10 in Addis Ababa, the ministers called upon the participants at the Summit of the Future to consider and adopt, as part of the planned pact of the future, the reforms for sustainable development and financing for development in Africa.
The declaration calls for the need to ensure the existence of global financing mechanisms that give African and other developing countries access to adequate and equitable concessional financing and to affordable market-based resources to accelerate sustainable development. In addition, there is a need to reform international tax governance.
AfCFTA: PAMA, MAN To Champion Ratification Of Single Currency (New Telegraph)
The MAN president said that the single liberalised market for free trade in goods and services, which African Continental Free Trade Agreement (AfCFTA) offers, could boost Nigeria and other countries in the continent in terms of export by more than $600 billion with wage gain of more than 10 per cent, if AU leaders aggressively campaign for the ratification of the continent’s single currency at the highest level. As Nigeria commences formal export of locally produced commodities to South Africa, Rwanda, Cameroon and Kenya this month under the Guided Trade Initiative of the African Continental Free Trade Area, the Manufacturers Association of Nigeria (MAN) and PanAfrican Manufacturers Association (PAMA) are closely working with African leaders to champion the ratification and adoption of a single African currency.
CIBN, partners advocate PAPSS adoption for Africa’s $3trn market (News Agency of Nigeria)
The Chartered Institute of Bankers of Nigeria (CIBN) says adoption of cross-border payment systems will boost trade and fast-track projected three trillion dollars borderless market needed to reverse poverty in Africa. Mr Ken Opara, President, CIBN, said this on Thursday in Lagos at a road show organised by Pan African Payment and Settlement System (PAPSS) in collaboration with CIBN and the National Action Committee on AfCFTA (NAC-ACFTA).
Opara said that easy cross-border payment system across Africa would accelerate economic growth, foster healthy business relationships, and support the realisation of AfCFTA objectives. “At the forefront of facilitating the achievements of the objectives of AfCFTA is the Pan-African Payment & Settlement System (PAPSS), developed by Afreximbank and the African Union, as an instrumental force in propelling the economic and financial integration of the African continent,” he said. He said over 80 per cent of intra-African payments currently go through either Europe or the United States, a process Afreximbank estimates costs as much as 5 billion dollars in fees and compliance costs.
Standard Bank mobilises debt fund to support sustainable infrastructure in Africa (Engineering News)
Financial services firm Standard Bank has committed to Acre Impact Capital’s Export Finance Fund I to support the financing of sustainable projects in Africa. Acre Impact Capital manages Export Finance Fund I, which seeks to invest in climate-aligned and sustainable infrastructure projects in renewable energy, health, food, water security, sustainable cities and green transportation, thereby providing access to essential services to predominantly underserved communities across the continent.
“As the largest African bank by assets, operating in 20 African countries, we understood first-hand the importance of backing this unique fund as a platform for converging new sources of capital for investment on the continent. “We are delighted to be part of this market-first fund working with our partners at the European Investment Bank, FSD Africa, Trimtab, Ceniarth and others. Acre’s backers collectively realise that this platform represents a new model for blending finance sources for Africa, with the potential to meaningfully address the funding gap for essential infrastructure,” says Standard Bank Investment Bank export and agency finance head Greg Fyfe.
BII, Citi launch $100m facility to boost trade finance in Africa (Trade Finance Global)
British International Investment (BII), the UK’s development finance institution and impact investor, has partnered with Citi to launch a $100 million risk-sharing facility. This initiative aims to bolster the trade finance availability for SMEs and corporates in frontier and emerging African markets. The agreement was signed during the World Bank’s Spring Meetings in Washington and seeks to enhance the business prospects of enterprises that are currently constrained by financial limitations.
The BII and Citi collaboration will assist local businesses in accessing finance to import economically valuable goods, including transportation, critical equipment, and machinery. This support is crucial for fostering the growth of manufacturing sectors in various African nations such as Benin, Cameroon, Côte d’Ivoire, Rwanda, Tanzania, Uganda, and Zambia.
The need for this funding has become more pressing as local enterprises face difficulties in securing necessary imports. These challenges are the result of high inflation, escalating interest rates, and rising commodity prices following the COVID-19 pandemic and the Russia-Ukraine conflict. Consequently, the trade finance gap in Africa has widened significantly, increasing by about a third since the pandemic began, from $81 billion in 2019 to $120 billion in 2023.
A carbon taxation regime covering carbon tax on fossil fuel, maritime transport, and aviation could generate additional funds to support the Africa energy transition, says Claver Gatete, Executive Secretary of ECA at a dialogue on carbon markets and development held on the sidelines of the tenth Africa Regional Forum on Sustainable Development (ARFSD-10) in Addis Ababa, Ethiopia.
“If combined with other policy measures, carbon tax could help to mitigate those residual emissions that cannot be addressed by carbon credit markets or subsidies and technologies. Such a tax could allow countries to improve responses to their commitments to contribute to reducing climate instability,” said Mr. Gatete.
In reference to ECA’s preliminary studies in exploring to benefits of carbon tax, Mr. Gatete noted that carbon tax in the global supply chains could allow countries like Egypt and Ethiopia to reap substantial revenues that could be reallocated to research and development in the aviation and marine transports.
COP29 climate summit host Azerbaijan defends oil and gas investments (Engineering News)
Azerbaijan, host of this year’s UN climate summit, will defend the right of oil and gas producing nations to invest in the sector, the country’s president said on Friday, noting that despite climate targets, fossil fuel demand remains strong.
“As the head of the country which is rich with fossil fuels, of course, we will defend the right of these countries to continue investments and to continue production because the world needs it,” Azerbaijan’s President Ilham Aliyev told a climate conference in Berlin on Friday. “But at the same time, countries with fossil fuel ... should be among those who demonstrate solidarity with respect to issues related to climate change,” he said.
Last year’s UN climate summit in the United Arab Emirates ended with a global agreement calling for “transitioning away from fossil fuels” to reach net zero emissions by 2050. Burning fossil fuels for energy is the main source of the greenhouse gas emissions causing climate change. Global energy-related carbon dioxide emissions increased to a record high last year, International Energy Agency data show.
A New Study Reveals How Renewables Could Power Africa By 2040 (Africa.com)
Over half of Africa’s people – about 600 million – lack access to even the bare minimum of electricity. The tough question to answer is how access can be extended without adding to global warming by relying on fossil fuels. We – a team from Rwanda and Germany who work in the field of renewable energy scientific modelling – set out to find the answer by building the Renewable Power Plant Database Africa, the first on the continent. It’s a database of available open access data on hydro, wind and solar energy sources that we’ve analysed.
The database shows that some countries, such as Nigeria and Zimbabwe, have enough projects in the pipeline to potentially transition away from fossil fuels by 2050. And that 76% of all electricity required on the continent could come from renewable resources by 2040. This would happen if the capacity of existing hydro-, solar and wind power plants were fully utilised and if all plants currently on the drawing-board were built.
Critical minerals boom: Global energy shift brings opportunities and risks for developing countries (UNCTAD)
As the climate emergency intensifies, demand is surging for minerals that are critical for renewable energy technologies like solar panels, wind turbines and electric vehicles (EVs). The booming demand poses significant opportunities and challenges for developing countries rich in critical energy transition minerals, especially those grappling with commodity dependence – when 60% or more of a country’s merchandise export revenue comes from raw materials.
UN Trade and Development has identified 110 new mining projects worldwide, valued at $39 billion, with $22 billion invested in 60 projects in developing countries. The new critical mineral mining projects needed offer opportunities for many developing countries, especially in Africa. The continent boasts over a fifth of the world’s reserves for a dozen metals essential to the energy transition, including 19% of those required for electric vehicles. But to fully capitalize on their mineral wealth, developing countries must go beyond merely supplying raw minerals and advance up the value chains.
Critical Minerals Africa 2024 to explore Lobito Corridor’s role in streamlining mineral trade (African Mining Market)
Multinational commodity trader Trafigura and Kamoa-Kakula entered a long-term agreement with the Lobito Atlantic Railway consortium to transport critical minerals via the Lobito corridor in February 2024. In addition, Canadian mining firm Ivanhoe Mines made its inaugural copper shipment from the Kamoa-Kakula Copper Complex in the DRC via the corridor, reducing transit time from 25 days to 8 days. The developments highlight the pivotal role of regional critical minerals value chains, such as the Lobito Corridor, in streamlining the trading of critical minerals and fostering socioeconomic development.
The Critical Minerals Africa (CMA) Summit, taking place on 6th – 7th November, in Cape Town, will host a panel discussion exploring the role of the Lobito Corridor in supporting large-scale projects to advance resource monetization. With the DRC, Zambia and Angola intensifying the exploitation of critical minerals to bolster export revenue, the Lobito Corridor serves as a blueprint for attracting fresh investments to advance infrastructure and mining developments.
Fourteen Ministers in charge of Technology in Africa, have issued the Nairobi Declaration on Fostering a Connected and Empowered Africa. The Ministers who convened at the Ministerial Exclusive Round Table Forum at Connected Africa Summit 2024 under the leadership of Ministry of ICT & Digital Economy Cabinet Secretary, Eliud Owalo, deliberated on harnessing the potential of digital technologies for the advancement of the continent, endorsing a collaborative vision for a digitally empowered Africa.
Emphasizing the centrality of digitalization and digital infrastructure to modern economies, the Ministers pledged to harness digital infrastructure and technologies to drive inclusive economic growth of at least 5% annually within the next decade. The declaration comes as curtains closed on the Connected Africa Summit 2024 which kicked off on Monday at Uhuru Gardens.
Anti-counterfeit body intensifies fight against illicit trade (Capital News)
The Anti-Counterfeit Authority (ACA) is in the process of implementing varied methods to fight trade in illicit goods that costs Kenya upwards of Sh40 billion annually. The ACA Executive Director Dr Robi Mbugua Njoroge said the Authority has entered a Memorandum of Agreement (MoUs) with other related government agencies and regional countries to collaborate in joint efforts to curb the thriving trade in counterfeit goods.
Addressing the media in Nairobi, Dr Mbugua said the Auditor General had flagged anti-counterfeit trade as a menace to the economy that costs the exchequer over Sh40 billion in unpaid taxes. Dr Mbugua said: “We have already started establishing frameworks of collaboration with neighbouring counties, specifically with Uganda and Tanzania to help stop cross-border illicit trade both ways.”
High-level dialogue marks 30 years of TRIPS Agreement (WTO)
In her opening remarks, DG Okonjo-Iweala stressed that – already in 1994 – the TRIPS Agreement articulated the compelling idea that the intellectual property (IP) system exists to promote the mutual interests of both producers and users of technological knowledge in a way that promotes social and economic welfare and that balances rights with obligations. Developing economies have increasingly tailored TRIPS Agreement implementation to their domestic needs, leveraging IP rights for technology transfer and economic growth.
Why the pursuit of SDGs would yield better outcomes with stronger IP systems (Nation)
The theme for the 2024 World Intellectual Property (IP) Day – “IP and the SDGs: Building our common future with innovation and creativity” – shines a light on the undeniable fact that innovation and creativity are vital to achieving the 17 Sustainable Development Goals (SDGs). In a world facing numerous challenges, such as climate change, resource scarcity, and public health crises, leveraging intellectual property to drive sustainable development for our common future has never been more critical. Explicitly referencing the importance of innovation is SDG-9 – “Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation”.
IP protection underpins creating a fair and equitable society that values innovation and creativity. This is essential for achieving the broader aims of SDG-16. Securing the rights of contributors is essential for sustainable development, and SDG-16 provides a framework that promotes “peaceful and inclusive societies for sustainable development, provides access to justice for all, and builds effective, accountable, and inclusive institutions” at all levels in the IP ecosystem.
How Counterfeits Undermine Sustainable Development (U.S. Chamber of Commerce)
Intellectual property rights are a priority trade issue for CBP, as the implications extend beyond economic impact to touch American consumers, global communities, and the very health of our planet. On this World Intellectual Property Day, it’s crucial to acknowledge the harmful impact of counterfeits on sustainable development, which has implications for our entire planet and the people living on it.
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Quick links
Digital innovation: The path to Nigeria’s economic diversification (Businessday NG)
Developing digital tools to help build Africa’s blue economy (The Fish Site)
ARFSD Spotlights Critical Role of Voluntary Local Reviews in SDGs and Agenda 2063 Progress (UNECA)
Russia Leads Charge for De-dollarization in Africa Ahead of BRICS Summit (Africa24.it)
E-commerce negotiators finalize “technical discussions” and outline next steps (WTO)
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South Africa initiates second dispute complaint regarding EU citrus fruit measures (WTO)
South Africa is challenging the EU’s prohibition on the importation of South African citrus fruit affected by the fungus “citrus black spot” (Phyllotactic citricarpa). South Africa claims the EU measure appears to be inconsistent with various provisions of the WTO’s Agreement on Sanitary and Phytosanitary Measures. This is the second dispute case initiated by South Africa regarding the EU’s import measures on citrus fruit. In July 2022, South Africa initiated a case challenging EU phytosanitary requirements for the importation of oranges and other citrus products related to the pest Thaumatotibia leucotreta, known as false codling moth.
Creativity, innovation keep South Africa’s mining tech manufacturing industry competitive (Engineering News)
An admirable degree of creativity exists within the South African mining technology and equipment manufacturing sector, giving manufacturers the necessary flexibility to weather the significant challenges over the past few years, Mining Equipment Manufacturers of South Africa CEO Lehlohonolo Molloyi has said. He was speaking as part of a panel in a webinar hosted by Creamer Media and sponsored by ABB, AECI Mining, Astron Energy and Epiroc, on April 24.
“I think there is resilience among South African manufacturers, amid all the challenges that we have,” Molloyi said, pointing out how the industry has managed to survive through ongoing electricity shortages, national logistical constraints and poor commodity prices, particularly in coal and platinum group metals. “It’s been tough for a lot of manufacturers to be able to sustain their businesses. However, as an industry cluster, we haven’t lost one member during all this time where there’s been such challenges in the industry.
TotalEnergies Eyes South Africa Fuel Trade With Imports Surging (Oil & Gas Jobs and News)
French oil major TotalEnergies SE plans to expand fuel trade with South Africa after a wave of refinery shutdowns sent imports soaring. Africa’s most industrialized nation has long relied on fuel from abroad, but demand has grown in recent years as a string of refineries suspended output. The shortage “has become massive,” Thomas Waymel, the company’s senior vice president of trading and shipping, said in Cape Town on Tuesday. South Africa now meets 80% of its fuel requirements with imports, he said. Total is well-placed to boost its presence in the country, where it has storage depots and plans a tie-up with local firm Zambo Energy to supply products.
The gold trade in Uganda makes a huge comeback (Business Insider Africa)
Tax issues had hampered the Ugandan gold trade, an industry said to be raking in 44% of Uganda’s export income, at one point, according to the Bank of Uganda. Back in May 2023, it was reported by the Ugandan Parliamentary Committee on Finance, Planning, and Economic Development, that Uganda has lost out on Ush600 billion ($160.77 million) in uncollected tax from the export of gold goods since July 2021 because of a dispute with exporters and refiners over levies. However, a recent report seen in the Ugandan newspaper, The Monitor notes that the gold trade has rebounded dramatically, earning the country an average of $228.4 million per month, in the twelve months leading to February.
Fostering innovation and integrity: Kenya’s path to be a model for Africa’s online commodity trading (The East African)
In recent years, the commodity market has emerged as a critical trading avenue. While prospects for other trading options have never looked more uncertain, commodities have not only weathered the storm but enjoy a particularly sunny outlook. The worldwide commodities market is expected to reach a nominal value of more than $131 billion before the end of 2024. With a forecasted growth rate of 1.49 percent, the market value is expected to soar beyond $139 billion by 2028.
More than many other countries, Kenya looks set to benefit from this boom time for commodities, with the country’s favorable geography putting it in prime place for international trade. However, there’s far more to the soaring popularity of commodities trading than this. An evolving regulatory framework, considerable outside investment, and a younger demographic with an appetite for online trading are all driving the trend.
Business leaders chart course for Tanzania’s digital economy (The Citizen)
Tanzania’s plan to build a digital economy has gained traction as members of the business community renew impetus to boost investment in the digital economy sector. This comes as the government has been calling upon all stakeholders from the private sector to support the endeavour as it strives to make the environment conducive, including launching the Tanzania Data Protection Commission (TDPC) recently.
Speaking at the 11th edition of the Impact-Business Breakfast on April 24, 2024, business leaders highlighted specific areas to focus on to realise this ambition. The breakfast meeting, themed ‘Intersection between Technology and Human Capital for Business Growth’, brought together technology enthusiasts, business owners, and economists.
Wheat farmers propose power tariff reduction (The Herald)
Wheat farmers have commended Government’s recent initiative to reduce water charges by 31 percent and called for a similar reduction in electricity tariffs to further encourage farmers into allocating more land to wheat cultivation. This comes after Government instituted a raft of measures aimed at motivating wheat production for self-sufficiency and export.
Zimbabwe Farmers Union (ZFU) secretary general Mr Paul Zakariya said in order to ensure profitability in the wheat sector, production costs must significantly decrease. “Reduction of water tariffs is one of the factors that will help turnaround the fortunes of our producers. The same should be extended to energy,” he said. Food Crop Contractors Association (FCCA) chairman, Mr Graeme Murdoch said any steps taken to reduce the high cost of production were appreciated and would assist in improving farmer viability.
Seychelles’ national IP strategy under development, says trade official (Seychelles News Agency)
A national strategy for intellectual property (IP) is currently being developed for Seychelles and once completed it is expected to guide all application of the law and policies regarding intellectual property going forward, said a top official on Monday. The principal secretary for trade, Francis Lebon, made the statement at the opening of a three-day workshop to get the feedback of different stakeholders done jointly with the Department of Trade and experts from the African Regional Intellectual Property Organisation (ARIPO).
“We want to ensure that Seychelles has an IP strategy in place that is strong and is developed with enough foresight to help the development of our economy,” he said. “Intellectual property is relatively new to Seychelles, there are a lot of frameworks that need to be set in place. It is something that cannot be put to the side. The protection of intellectual property is important for all aspects of economic development. We are ensuring that all bases are covered and are linked to each other properly.”
COMESA Supports Zambia Launch its Green Growth Strategy (COMESA)
The Government of Zambia, in collaboration with COMESA and various development partners, has launched the National Green Growth Strategy (GGS). This strategy aims to drive the country towards sustainable development, prioritizing environmental sustainability, economic growth, and social inclusiveness. Officially launched in Lusaka on Wednesday, April 24, 2024, by the Minister for Green Economy and Environment Hon. Eng. Collins Nzovu, the GGS is anchored on four pillars, namely resilient and climate compatible growth, enhanced resource efficiency, enhanced natural capital, and improved inclusivity.
Minister Nzovu said the Government has resolved to transition the country to a green economy, because the economic growth attained so far towards the vision of becoming a prosperous middle-income nation by the year 2030, has come at great cost to the environment, ecosystems and natural resources.
Gambia launches US$50M Digital Transformation for Africa (The Point)
The Ministry of Communication and Digital Economy of The Gambia has launched a staggering US$50 million Digital Transformation for Africa dubbed: Western Africa Regional Digital Integration Programme (DTFA/WARDIP) SOP-1, a regional digital programme. This is a groundbreaking regional initiative funded by the International Development Association (IDA), with active participation from esteemed organisations such as the African Union, Smart Africa, ECOWAS, and four key countries, including The Gambia, Guinea Conakry, Guinea-Bissau, and Mauritania. The above mentioned countries are beneficiaries to the digital programme.
In his launching statement, Ousman A. Bah, the minister of Communications and Digital Economy, said the initiative is designed to address critical challenges and unlock unprecedented opportunities in beneficiary countries’ digital landscape.
Nigeria, US to partner on AI, digital economy (CoinGeek)
Nigeria and the United States have pledged to collaborate in advancing the digital economy and emerging technology, including artificial intelligence (AI). Speaking after a four-day event focused on Nigeria’s AI strategy, Arthur Brown, the deputy chief of mission at the U.S. Embassy in Abuja, said: “We want to foster deeper partnerships and work together to create programmes and policies that will drive robust, resilient, and inclusive economic growth.” To deliver on the promise, the American government will co-host the U.S.-Nigeria Bi-National Commission within the next two weeks, Brown said. The event will bring together Nigeria’s leadership with high-level U.S. government officials, with AI at the top of the agenda.
Economic Report on Africa 2024 – Investing in a Just and Sustainable Transition in Africa (UNECA)
African countries face many economic, social, and environmental challenges. These global challenges render “business as usual” strategies unsustainable, and a new transformative approach is needed for a Just and Sustainable Transition (JST) in Africa, according to the Economic Report on Africa 2024.
The 2024 Economic Report on Africa themed “Investing in a Just and Sustainable Transition in Africa” was launched in Addis Ababa on 24th April 2024. The report analyses the opportunities and policies for Africa to build a just and sustainable economic system. For this to materialize, African countries need holistic development plans and strategies that fundamentally redirect their production, consumption, governance, technology, human capital, and financial systems.
Ms. Zuzana Schwidrowski, Director, Macroeconomics and Governance Division, UNECA, delivering the presentation on the report, highlighted that Africa has window of opportunity to undertake impactful JST guided by an African-informed narrative and needs. Factors such as youthful population, arable land, renewable resource endowments, huge deposits of strategic minerals, and latecomer advantages from emerging technologies position Africa to shape the sustainability transition at the global level.
Collaborate to reduce cost of trading under AFCFTA (GhanaWeb)
The West African Regional Director of CUTS International, Mr. Appiah Kusi Adomako, has urged Ghanaian SMEs to collaborate and build partnerships to reduce the cost of exporting and trading within the African Continental Free Trade Area. Mr. Adomako said Ghanaian SMEs face logistical challenges in trading. These challenges include the high cost of freight, unmotorable roads, and the non-existence of rail lines on the continent. This, according to him, makes it almost impossible for SMEs to trade under the AfCFTA. “SMEs that deal in the same goods should consider coming together so they can save on production and export costs under the AfCFTA,” he said. He further reiterated the importance of stakeholder collaboration to address the issue of trade logistics.
Greening the implementation of the African Continental Free Trade Area Agreement (UNECA)
African countries need to balance efforts to address these goals with the urgency of climate change. As of the 27th session of the Conference of Parties of the United Nations Framework Convention on Climate Change in 2022, most African countries had submitted their Nationally Determined Contributions (NDCs) to mitigate the impact of climate change. Establishing a carbon market is now on the policy agenda.
This analysis uses a dynamic general equilibrium model with different sources of energy (including renewable energy) and an in-depth presentation of greenhouse gas emissions to assess the economic and environmental impacts of implementing the AfCFTA Agreement and adopting various climate policies in Africa, including those NDCs and the International Monetary Fund’s proposal of carbon price floors. It shows that implementing the agreement and achieving Africa’s climate objectives are compatible. Continental coordination of emissions reduction among African countries proves most efficient for climate action.
Unlocking Africa’s $1trn food economy (WEF)
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. With a continuous demand and increase in Africa’s exports and imports regionally and internationally, there is a pressing need for global collaboration to prioritize food storage and transportation infrastructure in Africa to alleviate the food security crisis.
What Will It Take to Accelerate Access and Improve Lives? (World Bank)
Over half a billion people in Sub-Saharan Africa are at risk of being left behind without electricity access by 2030, with nearly 400 million of them living in countries subject to fragility, conflict, and violence. The World Bank Group has already begun efforts to deploy innovative financial and technical solutions that are essential for accelerating electrification rates that outpace population growth. Without access to reliable, affordable, and sustainable energy, the region will not reach its development aspirations or achieve an economic transformation that can lift millions out of poverty.
At this event, the World Bank Group, development partners, private sector representatives, and country ministers, discussed what it will take to scale up the solutions and investments that will help connect millions more Africans to electricity and transform African economies.
Ajay Banga, President of the World Bank Group, announced plans to ramp up electricity access for a quarter billion people in Sub-Saharan Africa, reaching nearly half the 600 million Africans currently without energy access by 2030. Akinwumi Adesina, President of the African Development Bank (AfDB), announced that AfDB will join this mission and help connect an additional 50 million people.
Sub-Saharan Africa’s Growth Requires Quality Education for Growing Population (IMF)
Demographic transition may be the biggest single opportunity for the economies of sub-Saharan Africa, but countries will only be able to enjoy the dividends if they make sufficient investment in education. The region’s population is poised to double to 2 billion by 2050. That expansion will be led by growth in the working-age population of those ages 15 to 64 that will outpace other age groups and drive almost all the increase.
Sub-Saharan Africa has made notable progress in expanding access to schools in recent decades, but outcomes in the region still trail those in other emerging market and developing economies, as we explore in our latest Regional Economic Outlook.
Africa’s $824Bn debt, opaque loans slowing growth (The Exchange Africa)
Africa’s immense economic potential is being undermined by non-transparent resource-backed loans that complicate debt resolution and compromise countries’ future growth, African Development Bank (AfDB) President Dr Akinwumi Adesina has said. Adesina at the Semafor Africa Summit taking place on the sidelines of the International Monetary Fund and World Bank 2024 Spring Meetings, highlighted the challenges posed by Africa’s ballooning external debt, which reached $824 billion in 2021, with countries dedicating 65 per cent of their GDP to servicing these obligations.
He said the continent would pay $74 billion in debt service payments this year alone, a sharp increase from $17 billion in 2010. ”I think it’s time for us to have debt transparency accountability and make sure that this whole thing of these opaque natural resource-backed loans actually ends, because it complicates the debt issue and the debt resolution issue,” Adesina told journalist Yinka Adegoke.
The Central African Economic and Monetary Community (CEMAC) has been hit hard by two shocks, just a few years apart. The first shock in 2015-16 was triggered by a sharp decline in oil prices—CEMAC’s main export proceeds and revenue source—just when many of these countries were ramping up public investment programs. CEMAC countries responded by putting together a coordinated effort relying on large fiscal adjustments under IMF- and World Bank Group-supported programs.
A large demand and supply shock ensued, exacerbated by the social and economic cost of mitigation measures to contain the contagion. This second crisis hit the region before fiscal and external buffers had time to fully recover from the previous one and threatened to erase the hard-won gains made since the previous shock. CEMAC authorities had been trying to set in motion a process to address the root cause of the region’s vulnerability—a largely undiversified economic basis overly dependent on oil.
The CEMAC Commission had put in place a large-scale strategy of CEMAC Economic and Financial Reform (PREF). This plan defines a set of reforms, organized around five pillars, to create the basis for more diversified, inclusive, private sector-led growth and enhanced governance of the public sector.
Tony Elumelu Foundation, partners unveil 2nd WE4A initiative at Uganda Business Forum (The Independent Uganda)
The Tony Elumelu Foundation (TEF) has this week launched the second instalment of the Women Entrepreneurs for Africa (WE4A) initiative. This groundbreaking initiative aims to empower women entrepreneurs across the continent by providing them with the necessary tools, resources, and mentorship to succeed in a dynamic business landscape.
The official launch of the second instalment of the WE4A initiative took place at the prestigious Ugandan-EU Business Forum in Kampala, a platform dedicated to fostering entrepreneurship and economic growth in Uganda and beyond. Women who are running businesses or have business ideas in Sustainable Agriculture and Agricultural Processing, Blue economy and Aquaculture, Renewable energy, Circular economy and waste management including biomass, and Eco-tourism are candidates for the WE4A programme.
Aviation Stakeholders Call for Collaboration to Improve Intra-regional Connectivity, Trade in Africa (This Day Live)
Aviation stakeholders in Africa have called for partnerships and the elimination of diplomatic boundaries to enhance connectivity among African countries in order to boost trade and create more jobs for teeming youths on the continent. The stakeholders who met with other aviation experts, suppliers, aircraft manufacturers and others from different parts of the world, yesterday, stated that Africa cannot develop airlines that would dominate the region and beyond unless existing airlines and governments decide to work together, encourage liberalisation to increase market share of African carriers and boost air travel in the region.
The experts met at the on-going MRO 2024 Conference, organised by the African Aviation Services, taking place at the Ethiopian capital, Addis Ababa from April 23 to 25, 2024.
Placing Farmers at the Core of Development Efforts is important to Achieve Food Security (UNECA)
As Africa races against time to meet the Sustainable Development Goals (SDGs) by 2030 and the Malabo Commitments to end hunger by 2025, the continent faces formidable challenges aggravated by climate change, inflation, and regional conflicts. The urgency to reevaluate financing mechanisms is increasingly recognized, with a growing emphasis on mobilizing domestic resources and exploring innovative financing solutions to bolster agricultural development.
In an event at the 10th African Regional Forum on Sustainable Development (ARFSD) held in Addis Ababa, a clarion call has been issued to policymakers to center their policies around the needs of farmers and enhance access to funding in the agricultural sector. The imperative to empower farmers and provide them with adequate financial resources is underscored as essential steps towards eradicating hunger, achieving food security, sustainable development, and realizing the broader objectives of the African Union Agenda 2063.
ECA urges African countries to adopt technological solutions to monitor their development strategies (UNECA)
To bolster national planning activities, policymakers have been urged to embrace digital tools to foster greater transparency, efficiency, and effectiveness. The call to action was made during the meeting on ”Leveraging Digital Technologies for Integrated Planning to Advance the SDGs and Agenda 2063 in Times of Multiple Crises”, which took place as a side event at the Tenth Session of the Africa Regional Forum on Sustainable Development (ARFSD-10).
Mr Antonio Pedro, Deputy Executive Secretary of the UN Economic Commission for Africa (ECA), stressed the importance of technology in supporting development planning systems. He said that while many countries do an excellent job of identifying their priorities through extensive stakeholders’ consultation, the number of identified priorities is often so numerous that implementation becomes a challenge.
See also: Development planning is a key transformative tool to strengthen resilience and sustainable development in Africa (UNECA)
“The problem of financing will remain unresolved so long as the rules and practices of global economic and financial governance obstruct access for our countries to sizeable resources on sustainable terms.” The above pronouncement by Senegalese President Macky Sall a year ago encapsulated the resounding plea echoing across Africa for a reshaping of the global financial architecture to better serve the continent’s developmental aspirations.
The current global financial architecture puts Africa at a significant disadvantage. Many African nations are burdened with debt and struggle to access concessional financing. The President of the African Development Bank Group, Dr Akinwumi A. Adesina, has been a vocal advocate, highlighting the mounting debt crisis and the hurdles in accessing concessional financing.
Lula argues that G20 priorities can contribute to Africa’s development (G20 Brasil 2024)
In a meeting with Akinwumi Adesina, president of the African Development Bank (AfDB), Lula reaffirms his commitment to strengthening Brasil-Africa relations. The Brazilian president wants to take advantage of the G20 to discuss debt redemption for African countries and boost development in the region. Reform of global, political, and financial governance institutions was also on the agenda. “We advocate that part of the debt owed by African countries to multilateral banks be transformed into investments in development,” said Brazilian President Luiz Inácio Lula da Silva during a meeting with Adesina on Tuesday, April 23rd, in Brasilia.
During the conversation, Lula highlighted the priorities of the Brazilian presidency of the G20 related to the development of the region and other countries of the Global South, such as the reform of international governance, and political and financial institutions. “We need to convince the world that if there isn’t some kind of development aid, the poorest countries will get poorer and the rich will get richer,” said the Brazilian president.
The side event at the G20 discusses how transitioning to ecologically sustainable practices can stimulate economic growth (G20 Brasil 2024)
Brazilian authorities unveiled the Ecological Transformation Plan, underscoring its alignment with G20 Brasil priorities. Concurrently, a forum side event delved into the synergy between ecological transformation and the economy, spotlighting their roles in fostering job creation, income generation, and enhancing living standards
During the event, Guilherme Mello, Secretary of Economic Policy at the Ministry of Finense, unveiled the Brazilian Ecological Transformation Plan, and elaborated on how this “ambitious plan” could serve as a significant asset in reshaping the economy while addressing the challenges of the climate crisis.
Women in international trade: B20 coordinates unprecedented G20 debate (G20 Brasil 2024)
In a workshop attended by 27 countries, the Business20 Engagement Group discussed the status and needs of women in the business world. According to data from the Brazilian Micro and Small Business Support Service (Sebrae) 45% of individual micro-enterprises in Brasil are run by women. When it comes to medium and large businesses, the percentage of women who own companies drops significantly. The International Trade Center (ITC) indicates that only 14% of exporting companies in the country are predominantly owned by women.
What can explain these figures and what is the role of States and the market in tackling this inequality? This was the guiding theme of the event “Women in Trade Initiative”, promoted by Business20 (B20) on Tuesday (23 April) in Brasília. “A greater participation of women in international trade has an impact in two ways: it generates an increase in innovation, productivity, improved economic benefits for companies and countries; and it brings greater economic empowerment to women themselves,” said Constanza Negri, chair of the B20.
Science and technology ministers have highlighted the need for governments to develop co-ordinated approaches to harness the opportunities of new and emerging technologies, while better managing future risks, at their ministerial-level meeting at the OECD.
Participants in the OECD Science and Technology Policy Ministerial 2024 – which drew high-level representatives from more than 50 countries – agreed on the need for policies to foster the development of and adaptation to technologies such as neurotechnology, synthetic biology and quantum technology.
In their final Declaration, Ministers called for transformative Science, Technology and Innovation (STI) policies to accelerate sustainability transitions and the embedding of shared values in international co-operation and technology governance, alongside policies to make STI more inclusive.
BRICS Expansion Will Change the Global Economy: Expert (Watcher Guru)
De-dollarization is the main agenda and topic of discussion in the upcoming BRICS 2024 summit in October this year. The 16th summit will be held in the Kazan region of Russia where new members the United Arab Emirates, Egypt, Iran, and Ethiopia will also be a part of the grouping. The summit will also plan on expansion making BRICS to become bigger and financially stronger. BRICS will discuss new ideas to put local currencies first for cross-border transactions and not the US dollar.
More than 40 developing countries have formally expressed their interest in joining the alliance. Therefore, the 10-member bloc will decide on BRICS expansion in the October summit in Russia. The expansion is based on consensus and all members will jointly decide on who is let in and which country needs rejection.
Related BRICS news:
Russian Deputy Foreign Minister Sergey Ryabkov: BRICS moves forward, creating important precedent (China Daily)
BRICS Would Provide Opportunity to CSOs for Having Critical Engagement (Walta)
The Integrated National Financing Framework (INFF) Facility launched its flagship report, ‘Making Finance Work for People and Planet: How Countries are Building their Sustainable Finance Ecosystem through Integrated National Financing Frameworks’ at an event on the sidelines of the ECOSOC Financing for Development Forum in UN HQ New York. The report underscores the crucial role of country-led, impact-oriented financing strategies in accelerating progress toward the Sustainable Development Goals (SDGs).
According to the report, INFFs are proving instrumental in building a more sustainable, inclusive financing ecosystem at the country level and can be seen as one of the key successes of the 2015 Addis Ababa Action Agenda where they were first introduced.
LDCs global trade in goods drops sharply in 2023 (The Financial Express)
The value of the global merchandise exports of the Least Developed Countries (LDCs) dropped by 4.60 per cent to US$ 256 billion last year from US$ 269 billion in 2022. The drop made the share of LDCs in world exports at 1.10 per cent last year which was almost similar in 2022.
Merchandise imports of LDCs also dropped to $316 billion from $355 billion during the period under review. Thus merchandise imports of the LDCs declined by 11.0 per cent. As a result, the share of LDCs in world imports dropped from 1.45 per cent in 2022 to 1.30 per cent in 2023. Global Trade Outlook and Statistics, released by the World Trade Organization (WTO) in the second week of this month, unveiled the statistics.
“The impact of the 2023 trade slump on LDCs is a matter of concern since these countries have limited resources to deal with global economic shocks,” said the WTO report. “The drop in merchandise exports of LDCs last year was in 19 line with the decline at the world level, but the contraction on the import side was larger, limiting consumption possibilities for LDCs,” it added.
Quick links
The US is one of the least trade-oriented countries in the world – despite laying the groundwork for today’s globalized system (The Conversation)
The WCO Smart Customs Project Launches Global Survey on Disruptive Technology Adoption in Customs (WCO)
The Bloc Effect: International Trade with Geopolitical Allies on the Rise (Visual Capitalist)
Global Commodity Prices Level Off, Hurting Prospects for Lower Inflation (World Bank)
Rapid expansion of batteries will be crucial to meet climate and energy security goals set at COP28 (IEA)
WTO workshop takes stock of incentives for technology transfer under TRIPS Agreement (WTO)
Members review anti-dumping actions and regulations at first biannual meeting of 2024 (WTO)
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South Africa aims to set up three JET-aligned skills development zones (Engineering News)
Three Just Energy Transition (JET) skills development zones focusing on renewables and grids, electric vehicles and green hydrogen value chains are proposed for implementation under the larger JET Investment Plan (JET-IP), for which pledges of $11.5-billion have been made by several developed countries.
The zones will be anchored to specific educational institutions, most likely technical and vocational education and training (TVET) colleges selected for their proximity to the priority sectors, where education and training will be tailored towards a specific JET focus and where catalytic interventions will be undertaken and partnerships with business developed.
The South African government’s JET-IP outlines the need for R1.5-trillion-worth of investment in the renewables, new energy vehicles and green hydrogen sectors between 2023 and 2027 to support the country meet its goal of reducing its carbon emissions to as close as possible to the lower band of the emissions range submitted to the United Nations Framework Convention on Climate Change, namely between 420- and 350-million tons by 2030.
I. Coast cocoa trade destroying Liberian forest – Report (The New Dawn Liberia)
At a major event on Monday, April 22, 2024, in Brussels, the authors of an investigation revealed that companies sourcing cocoa from Côte d’Ivoire are promoting the destruction of forests in neighboring Liberia. The conclusions of the field investigation presented by IDEF representative Bakary Traoré highlight that the traceability mechanisms used by these companies are flawed and do not comply with the new anti-deforestation regulation published on June 9, 2023, in the Official Journal of the European Union. The investigators argue that these mechanisms should be replaced by the robust and transparent national traceability system now in place in Côte d’Ivoire.
“Work is currently underway in Côte d’Ivoire to set up a national traceability system. Under this system, all plots of land in Côte d’Ivoire will be geolocated, and producers will be registered. A map of producers, including a barcode system, will also indicate what individual farms are able to produce and track their sales. Our investigation shows the importance of speeding up the work begun by the Ivorian authorities,” explains Bakary Traoré, Executive Director of the Ivorian NGO (IDEF) and the report’s main author.
“Current traceability systems were set up by the chocolate companies and are controlled by them. They are not transparent, and our investigation found them to be flawed. To resolve the problem and comply with new European regulations, traders in raw materials will have to change their approach.”
US, Nigeria to hold conference on digital economy, emerging technology (Tribune Online)
The United States of America and Nigeria are set to discuss digital economy, emerging technology and the development and implementation of Artificial Intelligence (AI) in Nigeria. Mr Arthur Brown, the Deputy Chief of Mission, at the U.S. Embassy, Abuja, made the disclosure at the closing ceremony of a four-day workshop on National Artificial Intelligence Strategy in Abuja, recently.
“In less than two weeks, the United States and Nigeria will hold a Bi-National Commission, a conference with high-level U.S. government officials coming to Abuja to discuss, among other things, the digital economy and emerging technology. “We want to foster deeper partnerships and work together to create programmes and policies that will drive robust, resilient and inclusive economic growth. “Looking ahead, we hope to build on the momentum of these four days workshop with an Al conference in Lagos to deepen the linkages between our economies.
“We want to align Al governance to ensure that Al is deployed in a safe, secure, transparent and trustworthy manner,” he said.
The feasibility studies for the 256km multinational Kisumu-Kisian-Busia/Kakira-Malaba-Busitema-Busia expressway is set to start soon after EAC officially handed over the site to the consultancy firm named GOPA Infra Gmbh of Germany together with ITEC Limited of Kenya. The expressway that will run from Kisumu in Kenya to Kakira, a town Jinja district, will involve rehabilitation of the existing two-lane single-carriageway to bitumen standards and the upgrading of the same into a two-lane dual carriageway over a 104km stretch.
The $1.4 million feasibility study project funded by the African Development Bank (AfDB) will determine the economic viability of upgrading the existing multinational road sections from single carriageway to expressway standards. The studies will be carried out as one integrated project but in two distinct packages to determine the economic feasibility of developing the corridors that connect the two countries to the port of Mombasa.
COMESA Begins Implementing Trade Remedies Regulations (COMESA)
COMESA has begun the comprehensive implementation of its Trade Remedies Regulations, aimed at recommending measures to prevent potential losses that its Member States might incur due to unfair trading practices and unforeseen surges in imports during business transactions. The Regulations were adopted way back in 2000, but their application has largely been concentrated in the enforcement of the Safeguard Measures. Specifically, the Regulations together with the COMESA Treaty have been useful in the management and application of the Kenya Sugar Safeguard measures. These have effectively been applied to protect the country’s sugar sector.
Dr. Mohamed Kadah, COMESA’s Assistant Secretary-General in charge of programs, noted; “Trade liberalization alone cannot deliver anticipated benefits to all Member States equally. There are bound to be winners and losers in the trading arena.”
The full implementation of the regulations follows the inaugural meeting of the Trade Remedies Committee, which commenced on April 24, 2024. This committee was established as directed by the COMESA Council of Ministers during its 44th meeting in November last year, to ensure wider coverage of remedies. The operationalization of the Committee signifies the beginning of the implementation of the trade remedies regulations. It is expected to promote fairness and stimulate intra-regional trade within the COMESA free trade area (FTA), which currently consists of 16 participating Member States.
AmCham Business Summit 2024 kicks off, trade ties top agenda (The Exchange Africa)
The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit, has officially kicked off in Nairobi, Kenya, under the theme, ‘Catalyzing The Future of US-East Africa Trade and Investment’. This year’s forum underscores AmCham Business Summit as the premier platform for strengthening bilateral trade and investment between the United States, Kenya, and East Africa.
In a keynote speech, Rebecca Miano, Cabinet Secretary, Ministry of Investments, Trade, and Industry welcomed the delegates to Nairobi, Kenya, while highlighting the Kenya and US cordial relationship enjoyed over the last 60 years. She highlighted the recent United States-Kenya Strategic Trade and Investment Partnership (STIP) MoU signed between Kenya and the US to address investment-related challenges and promote business opportunities emphasizing the importance of the partnership between Kenya and the US in areas such as infrastructure, health, renewable energy, and the digital economy.
She said, “This summit aims to provide opportunities for trade and investment by facilitating a forum to matchmake and create opportunities that initiate, advance and close deals. The Summit also resonates very well with Kenya’s government’s agenda, commonly known as the Bottom-Up Transformation Agenda, which aims to transform the economy and create a business-friendly environment at all levels.
Financing African hydrocarbon projects needs a segmented approach (Engineering News)
In an era in which raising finance for major hydrocarbons projects is increasingly challenging, the developers of such projects in Africa should consider segmenting them and separately seeking finance for each segment. That advice was given by Africa Finance Corporation Senior Associate Shao Olumide. He was participating in a panel discussion at the 2024 African Refiners and Distributors Association conference, in Cape Town.
Globally, investors were moving away from hydrocarbons projects, including fossil fuel refineries, he pointed out. But investors not willing to invest in a refinery itself might very well be prepared to invest in infrastructure ancillary to, but essential for, the operation of the refinery, such as roads, piers and other port or terminal infrastructure.
Efficient commodity exchange platforms key for Africa’s economic growth (UNECA)
Efficient and effective financial and commodity exchange markets are crucial for economic growth, as well as for equitable, inclusive, and sustainable development of the continent, says Antonio Pedro, Deputy Executive Secretary, Economic Commission for Africa (ECA). Mr. Pedro was speaking at a virtual High-Level Dialogue on Regional Commodity Exchanges as Means to Boost Investments, Production and Industrialization in Africa hosted by ECA Sub-Regional Office for Eastern Africa in Kigali, Rwanda.
According to the ECA Deputy Executive Secretary, a total of 14 commodity exchanges on the continent have agreed to harness their collective potentials under the African Continental Free Trade Area (AfCFTA). The ECA advocates for developing regional commodity exchanges because Africa has a large commodity base that can support regional exchanges and the development of regional value chains.
“These exchanges are centralized platforms by design that make it easier to aggregate, standardize, and improves market issues by lowering transactions costs and promoting transparent pricing. In addition to encouraging price discovery, this economic infrastructure,” said Mr. Ngabitsinze. “By aligning supply chains more closely with market demands and providing an outlet for surplus production. This exchange underpins the development of our missing industries, such industrial linkages essential for shifting from primary agriculture to value added manufacturing.”
In a move to advance agricultural entrepreneurship and agribusiness development across Africa, the Food and Agriculture Organization of the United Nations (FAO) and the African Union (AU) have unveiled two new publications on agribusiness incubators and public-private partnerships.
The first publication, Agribusiness Incubation and Acceleration Landscape in Africa is an in-depth analysis and mapping of over 430 enterprise support organizations across the continent, aiming to fill the gap in publicly available information on agribusiness incubation and acceleration programmes and their impacts. The second publication, Guide for the Design and Implementation of Public-Private Partnerships for Agribusiness Development in Africa, aims to support African countries in crafting sustainable and inclusive public-private partnerships (PPPs) for agribusiness development. It draws on lessons learned from across Africa.
China urges developed countries to fulfill climate finance commitments at G20 meetings (Global Times)
China has urged developed countries to expedite the implementation of their climate finance commitments, helping developing countries in climate actions with financial and technological assistance. The stance was made during G20 meetings, held on Wednesday and Thursday, aimed at enhancing technical and capacity-building support for developing countries.
During the G20 Finance Ministers and Central Bank Governors Meeting under the 2024 G20 Brazilian presidency in Washington DC, China’s Finance Minister Lan Fo’an called for all parties to adhere to the principle of common but differentiated responsibilities in climate actions, asking developed countries to implement their climate finance commitments, according to the website of China’s Ministry of Finance. Lan emphasized China’s commitment to refining policies and standards that support green development, including fiscal, financial, investment and pricing systems.
UN chief calls for all hands on deck at Climate Promise 2025 launch (UN News)
The Climate Promise 2025 aims to accelerate efforts from local to international levels to take more ambitious steps to ensure the global temperature does not heat up beyond the 1.5° limit, a goal set with the 2015 Paris Agreement on climate change. UN Secretary-General António Guterres said the initiative, driven by the UN Development Programme (UNDP), recognises an important truth in the climate battle: “it is not all doom and gloom”.
“Many countries have the will to take more ambitious steps on climate action, but the world needs to mobilise to ensure there is a way,” he said at the Below 1.5 by 2025: The Plan launch event.
The UN chief said the Climate Promise 2025 represents the entire UN system coming together, helping governments rise to the moment, seize the opportunity and create new national climate plans aligned with the 1.5° limit. UNDP’s Climate Promise has already worked with 128 countries on the last round of national climate plans to increase quality and ambition. “Done right, national climate plans double as national investment plans and reinforce national development plans,” the UN Secretary-General said. “They can catapult sustainable development, connecting billions to clean power, boosting health, creating clean jobs and advancing equality.”
See also: AfDB calls for collective support for developing countries hit by climate change (AfDB)
Data Blog - Thirty years of trade growth and poverty reduction (WTO Blog)
Between 1995 and 2023, total world trade – goods and commercial services– saw strong growth, averaging 5.8 per cent per year. This translates into an almost fivefold increase in world trade. The growth of world trade outpaced that of global gross domestic product (GDP), which increased by an average of 4.4 per cent per year over the same period.
Over the past three decades, the rapid economic growth facilitated by trade in developing and emerging economies has significantly transformed trade patterns. Trade between developing economies expanded at a rate of 9.7 per cent per year, surging from less than a tenth of global trade in 1995 to nearly 25 per cent by 2022, reaching a total value of US$ 6.1 trillion. In contrast, while trade between developed economies accounted for over half of global trade in 1995, by 2022 this proportion had declined to 39 per cent, confirming a relative shift in trade flows towards developing and emerging economies.
In a strong call to stakeholders at the opening of the tenth Africa Regional Forum on Sustainable Development (ARFSD-10) in Addis Ababa, Ethiopia, Amina Mohammed, UN Deputy Secretary-General said urgent action is needed to increase capital flows into developing countries, particularly in Africa to make the SDGs stimulus a reality. She also urged the international community to support Africa in its efforts to deliver its vision for development through the SDGs 2030 agenda and Agenda 2063.
“Debt servicing in Africa is at an all-time high due to external shocks, leaving very little fiscal space or nothing to invest in sustainable development.” Furthermore, debt servicing “accounted for a staggering 47.5% of government revenue in Sub Saharan Africa last year. This is the primary expenditure on essential services, as well as investments in the continent’s future in areas of education and health,” she said.
According to Ms. Mohammed, at least $500 billion a year is needed to scale up affordable long-term financing for development, alongside structural reforms within the very institutions and rules that make up the international financial architecture.
Related: Africa’s Leadership, Collective Voices Key for Scaling Up Key Transitions, Investment Pathways to Sustainable Development, Deputy Secretary-General Tells Regional Forum (UN Press)
Financing is the fuel of development. Yet many developing countries are running on empty. This is creating a sustainable development crisis. A crisis of lingering poverty and rising inequality. A crisis of hunger, lack of education and shattered infrastructure. A crisis of climate catastrophe and shocks that are becoming more frequent and acute. And a crisis that, if left unchecked, will undermine stability, prosperity and peace for decades to come.
The world faces an annual financing gap of around $4 trillion to reach the SDGs — a sharp rise from the $2.5-trillion gap one year before the COVID-19 pandemic. This growing financing gap is matched by a growing financing divide — between those countries that can access financing at affordable rates, and those that cannot… We must continue pushing for an SDG Stimulus of $500 billion annually in affordable long-term finance for developing countries. The Stimulus was welcomed by world leaders at the SDG Summit and in the Group of 20 (G20) New Delhi Leaders’ Declaration. Now it’s time to move from words to action and deliver affordable, long-term financing at scale.
Minister Haddad announces the creation of a G20 Roadmap for multilateral bank reforms (G20 Brasil 2024)
“Development banks need to intensify their efforts and work together effectively and at scale,” said Finance Minister of Brasil, Fernando Haddad, during a ministerial meeting of the Finance Track, held in Washington, USA. Brasil will develop an evidence-based G20 Roadmap for multilateral bank reforms to make multilateral development banks better, bigger and more effective. At the center of the effort is the guarantee that the banks’ support will continue to be geared towards national development priorities, providing concrete benefits to the countries favored by their investments.
The reform of global governance institutions is one of the priorities of Brasil’s G20 presidency. Building on the work of previous G20 presidencies, Brasil will develop a G20 Roadmap for reforms of multilateral development banks (MDBs) to make MDBs better, bigger and more effective. The Minister of Finance, Fernando Haddad, presented on Thursday (18), in Washington, United States, the main ideas that will guide the construction of the Roadmap.
According to the minister, “to drive transformative development, multilateral development banks need to intensify their efforts and work together effectively and at scale,” he affirmed.
Digital Economy Conference demonstrates important collaboration among key sector players (NewsDay)
A Digital Economy Conference held on the opening day of the Zimbabwe International Trade Fair (ZITF) on Tuesday, bringing together key players in the ICT sector, demonstrated a new level of collaboration among key players in the industry. The Conference, themed ‘Embracing the Digital Economy’, was organized by the Ministry of ICT, Postal and Courier Services.
Key topics discussed in detail at the Conference – a first of its type – include Emerging Technologies and Innovation, Regulatory Framework and Governance for a digital economy, Digital Infrastructure to support a digital economy, and the Digital Skills Development needed to achieve the digital economy.
Minister Mavetera, said the digital economy stands as a cornerstone of progress in the 21st century, driving innovation, creating opportunities and revolutionising the way people conduct business and interact with the world. “In the digital age, our economy is no longer bound by physical constraints. It is defined by the flow of information, the exchange of ideas, and the connectivity that binds us all,” she said.
Small Island Digital States: How Digital Can Catalyse SIDS Development (UNDP)
Digital is positively impacting lives and livelihoods across SIDS – improving the reach and effectiveness of government and public service delivery, providing exciting new opportunities for citizen engagement and empowerment; and shaping new products, sectors, and opportunities. It also draws on digital products and services, initiatives, and innovations being shaped and delivered by UNDP Country Offices across the global SIDS community.
Discussion at the G20 centered on the inequality in Artificial Intelligence infrastructure (G20 Brasil 2024)
On April 17, 2024, in Brasilia, a side event at G20 Brasil tackled the challenges of uneven distribution of Artificial Intelligence (AI) assets and infrastructure, exploring potential solutions for governments, the private sector, and civil society. This meeting, under the umbrella of the G20 Dialogues and facilitated by the Digital Economy Working Group, convened global experts to deliberate on “Artificial Intelligence for Social Equity and Sustainable Development.”
Fernanda Martins, Director of Research at InternetLab, emphasized that Artificial Intelligence poses challenges to the development and sustainability of democracies, highlighting the importance of discussing AI governance. “Given the current historic moment and the rise of authoritarian governments around the world, examining a technology of such magnitude underscores the critical need for a discerning approach, social responsibility, and partnership between countries to ensure the ethical use of AI,” stated the Director of Research.
For Martins, the Global South represents the majority of the world’s population and its data is extracted for the benefit of a minority that historically gains from technological advancements. Therefore, regulatory discussions must take a comprehensive approach, considering factors such as race, gender, sexuality, social status, territorial distinctions, and national identity.
AI Will Transform the Global Economy. Let’s Make Sure It Benefits Humanity (IMF)
The rapid advance of artificial intelligence has captivated the world, causing both excitement and alarm, and raising important questions about its potential impact on the global economy. The net effect is difficult to foresee, as AI will ripple through economies in complex ways. What we can say with some confidence is that we will need to come up with a set of policies to safely leverage the vast potential of AI for the benefit of humanity.
In a new analysis, IMF staff examine the potential impact of AI on the global labor market. Many studies have predicted the likelihood that jobs will be replaced by AI. Yet we know that in many cases AI is likely to complement human work. The IMF analysis captures both these forces.
See also: AI to increase participation of disabled persons in digital economy (KBC)
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Kenya second-hand clothes imports from China rise 86pc (The East African)
The quantity of second-hand clothes imported from China, which is Kenya’s main source of the popular low-cost used clothing, jumped by 86.2 per cent in the first quarter of this year signalling increased demand.
Data from Chinese authorities shows the country exported 31,594 tonnes of second-hand clothing and accessories to Kenya between January and March 2024, valued at $22.732 million (Ksh3.03 billion). In the first quarter of 2023, the value of second-hand clothes imported from China was $20.651 million (Ksh2.768 billion) for 16,962 tonnes brought in.
Second-hand clothes, which are commonly known as mitumba, are popular, especially among low and middle-income earners due to their low price compared to new clothes which are more expensive. The trade is a multi-billion-shilling enterprise employing an estimated two million individuals, according to government estimates.
Traders imported 177,664.4 tonnes of second-hand clothes in 2022 valued at Ksh19.9 billion, according to the Kenya National Bureau of Standards (KNBS).
Kenya economy to overtake Angola, IMF forecast shows (The East African)
Kenya will overtake Angola to become the fourth largest economy in sub-Saharan Africa this year, behind South Africa, Nigeria, and Ethiopia, a forecast by the International Monetary Fund (IMF) shows. The forecast sees Kenya maintaining that position until the end of 2029.
Last year, Kenya’s GDP was estimated to have grown to $108.9 billion (Ksh15.14 trillion, using the current exchange rate) from $113.7 billion (Ksh13.37 trillion on the existing rate then) in 2022. Ethiopia, which has extended its lead over Kenya, is projected to overtake Nigeria in two years to become the second-largest economy in the region.
The size of the Ethiopian economy — which was smaller than Kenya’s in 2020 — continued to grow and is estimated to have increased to $159.74 billion (Sh21.165 trillion) in 2023, widening the gap between it and Kenya. Ethiopia’s economy is also expected to hold steady at the second position for three years to 2029.
Tanzania unveils priorities as new investment budget is tabled (The Citizen)
Completing the preparation of the National Development Vision 2050 and finalising the drafting of a new investment policy and its implementation strategy are among the priority areas for the Planning and Investment docket in the 2024/25 fiscal year.
The Minister of State in President’s Office responsible for Planning and Investment, Prof Kitila Mkumbo, who tabled his docket’s budget for 2024/25 on Monday April 22, 2024, said the focus areas also included completing the integration of the Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA) which will result into establishing a new institution to oversee private sector investment issues.
Other priorities are initiating competitions on how regional secretariats and local government authorities attract investments and create a conducive environment for investment and trade; and revitalising the business and investment environment improvement plan that will identify new investment and business challenges in the country and how to address them.
Zambia seeks power imports for key mining sector (Engineering News)
Zambia’s State-owned electricity utility Zesco said on Monday it is seeking to import power to avert an energy deficit that could affect output in Africa’s second-largest copper producer.
The southern African country generates 86% of its electricity from hydropower stations. Power generation has been hit by a severe drought induced by El Nino - a weather phenomenon resulting from the abnormal warming of the waters in the eastern Pacific, which raises temperatures globally. As a result, Zambia expects a power generation deficit of 700 megawatts this year, Zesco said in a statement.
“We are negotiating additional electricity imports that will be strategically allocated to crucial sectors, including mining, agriculture, and manufacturing to support economic stability and growth,” Zesco said. It did not give details of how much power it seeks to import.
Lesotho CSOs Shape African Development Bank’s New Country Strategy (AfDB)
Lesotho’s civil society organizations (CSOs), operating under the umbrella of the Lesotho Council of NGOs, convened on March 21, 2024, to evaluate the African Development Bank’s (AfDB) portfolio performance in the country. The meeting with Bank representatives aimed to gather input on the Bank’s current Country Strategy Paper (CSP) for Lesotho (2020-24) and to discuss the upcoming CSP for 2025-29. These CSOs play a pivotal role in implementing development initiatives spanning HIV/AIDS, agriculture, food security, climate change, education, health, child protection, WASH, and budget analysis, among other areas. Moreover, they are instrumental in advancing sustainable development goals and shaping responses to the COVID-19 pandemic and recovery efforts in Lesotho.
Nigerians query high food prices despite dollar’s crash (Vanguard)
With Naira appreciating to N1, 300 to the dollar thus giving a ray of hope that the economy is recovering, Nigerians, including farmers and Civil Society Organizations, CSOs, are puzzled that the heartwarming development was yet to reflect on food production and prices. They pointed out that prices of farm inputs are still very high while interest rates are far above farmers can afford among other factors. However, they suggested how government can ensure the appreciation of the Naira is sustained to eventually impact on food production and make prices affordable by Nigerians.
The National President, All Farmers Association of Nigeria, Ibrahim Kabir, said stronger Naira will lead to higher purchasing power and more food would be bought. “The stronger the Naira the higher its purchasing power and the more food you can buy with it, therefore, food will become more affordable, which is a prerequisite for food security.”
Turkey to drill oil off Somali coast starting in 2025 (The East African)
Somalia says Turkey will begin drilling oil off the country’s massive coastline from next year, according to the Director General of the Somali Ministry of Petroleum and Mineral Resources, Mohamed Hashi Abdi ‘Arabey’. Talking to the BBC Somali Service, Abdi affirmed the recent assertion by a Turkish official on a plan for deep-sea oil drilling operation from early 2025.
“It is correct, and it is part of the agreement we reached (with Turkey). They will begin seismic works and drilling at the coasts facing Barawe and Hobbio districts,” Abdi, agreeing with information released by Turkey’s Energy and Natural Resources Minister Alparslan Bayraktar last week. Barawe is about 200 km south of Mogadishu while Hobbio is about 500 km to the northeast. Somalia in early March had signed a new oil and gas deal with Turkey in which officials said will aid cooperation in exploration and exploitation of the hydrocarbons.
Africa is making progress in 12 of the 17 Sustainable Development Goals (SDGs), but the current pace of progress is insufficient to achieve the goals by 2030, according to an experts report on the progress on Africa Sustainable Development.
The report indicates that progress on the SDG agendas varies across subregions. West and North Africa are the best performers. While East Africa has relatively low performance. “None of the subregions is on track on achieving the SDGs goals. There is also a general issue of lack of data in tracking the progress in Africa,” says the experts report. Antonio Pedro, the Deputy Executive Secretary for Programme Support at the ECA underlined the lack of robust data as a major hurdle in tracking progress accurately. Improving data systems to effectively monitor and achieve the SDGs is essential, he stressed.
“Addressing wide-ranging challenges—including social, political, environmental, and economic—is essential; specific focus areas like women’s empowerment, peace building, and security need targeted attention,” said Mr. Pedro, stressing the need to take advantage of technological advances, including artificial intelligence, to target interventions and achieve the SDGs with greater efficiency.
The Southern African Development Community (SADC) Secretariat attended the ground-breaking ceremony for the SADC Regional Fisheries Monitoring, Control and Surveillance Coordination Centre (MCSCC) on the 22nd of April 2024 in Ka-Tembe, Maputo, Mozambique.
Following approval of the Charter establishing the SADC MCSCC by SADC Council of Ministers in August 2017, in Pretoria, South Africa, the Charter entered into force on 8th April 2023 after reaching two-third majority of Member States. With this, the State Parties to the Charter namely, Republic of Angola, Republic of Botswana, Kingdom of Eswatini, Kingdom of Lesotho, Republic of Madagascar, Republic of Malawi, Republic of Mozambique, Republic of Namibia, Republic of South Africa, United Republic of Tanzania and Republic of Zambia established the MCSCC as an international organisation and an autonomous and self-accounting institution of SADC. The Republic of Seychelles became the Party to the Charter following accession in July 2023.
Improving commercialization, post-harvest loss vital to food self-sufficiency: MoA (Ethiopian Press Agency)
Expanding commercialization and reducing post-harvest loss crucial to ensure food self-sufficiency in Ethiopia, said the Ministry of Agriculture (MoA). Approached by The Ethiopian Herald, MoA Food and Nutrition Coordination Office Head Alemtsehay Sergawi said that expanding agriculture commercialization, ensuring food safety and reducing post harvesting losses would contribute to ensure food self-sufficiency in the country.
The nutrition sensitive agro-food system strategy implementation, focusing on widely producing of green leafy vegetables and others would contribute to fill the micro nutrient deficiency. The process needed ensuring the availability of nutritionally enriched food products by affordable price to community, she said. Food import substitution would be achieved by properly managing agricultural products’ losses as well as enhancing quality production and productivity, Office Head added.
Step towards harmonized agricultural policies and regulations (COMESA)
COMESA is currently hosting a stakeholders’ workshop on Sanitary and Phytosanitary (SPS) measures from 22-30 April 2024 in Nairobi, Kenya. Attended by sector specialists from COMESA Member States, its objective is to revise the COMESA Sanitary and Phytosanitary (SPS) Regulations, SPS Strategy, and develop Implementation Plans for the Food Safety, Plant Health, and Animal Health Technical Working Group (TWGs).
COMESA SPS Regulations were developed in 2009, with a focus on the harmonization of SPS policies and measures to facilitate trade in the region and beyond. However, these regulations have been facing difficulties in terms of implementation due to several factors, including lack of technical capacity.
UNECA: Agricultural innovation needed to aid food production in Africa (ProAgri)
African countries have struggled to attract green financing amid slow inflows of climate finance promised by richer countries. Experts say this, in turn, has exposed poor African countries to a cycle of missed food production targets, with analysts noting that governments must look for innovative ways to attract investment into sectors such as smart agriculture and drought resilient crop varieties.
This is despite years of numerous conferences to address these challenges, with Veronica Jakarasi, the Chief Director in Zimbabwe’s Climate and Meteorological Services, noting that: “To attract green financing, Africa needs to have policy and regulatory frameworks with set targets in line with ambitious development.”
See also: Reviving use of local seeds in African farming (SciDev.net)
The world’s electric car fleet continues to grow strongly, with 2024 sales set to reach 17 million (IEA)
More than one in five cars sold worldwide this year is expected to be electric, with surging demand projected over the next decade set to remake the global auto industry and significantly reduce oil consumption for road transport, according to the new edition of the IEA’s annual Global EV Outlook.
The latest Outlook, published today, finds that global electric car sales are set to remain robust in 2024, reaching around 17 million by the end of the year. In the first quarter, sales grew by about 25% compared with the same period in 2023 – similar to the growth rate seen in the same period a year earlier, but from a larger base. The number of electric cars sold globally in the first three months of this year is roughly equivalent to the number sold in all of 2020.
Substantial investment in the electric vehicle supply chain, ongoing policy support, and declines in the price of EVs and their batteries are expected to produce even more significant changes in the years to come. The Outlook finds that under today’s policy settings, every other car sold globally is set to be electric by 2035. Meanwhile, if countries’ announced energy and climate pledges are met in full and on time, two in three cars sold would be electric by 2035. In this scenario, the rapid uptake of electric vehicles – from cars to vans, trucks, buses, and two- and three-wheelers – avoids the need for around 12 million barrels of oil per day, on a par with current demand from road transport in China and Europe combined.
The unprecedented speed and reach of Artificial Intelligence have sparked international debates and caused both excitement and alarm, and raising important questions about the impact of this revolutionary technology on economies and societies. Artificial Intelligence is already becoming a reality with an increasing number of industries and government institutions integrating this technology and an increasing number of users of AI applications are recorded every day.
It’s within this context, the 44th Ordinary Session of the African Union Executive Council endorsed the Conceptual framework and tasked the AU Commission to expedite the development of a Continental AI Strategy that is comprehensive, forward-looking and action-oriented to effectively harness the potential of AI potential to transform the continent in line with the AU Agenda 2063 goals, while managing associated risks and harms.
In order to facilitate wide engagement and contribution into the Continental AI Strategy, the AUC will host a series of online consultations open to all stakeholders during April 2024.
Digital access to unlock Africa’s potential, President Ruto says (The East African)
Kenya’s President William Ruto has intensified calls to African government and business leaders to make the continent future-ready by incorporating technology. Speaking on Monday when he presided over the opening of the Africa Connected Summit 2024 in Nairobi, Dr Ruto told delegates that Africa stands to reap big from the digital revolution if those in positions of influence made the right decisions.
“Africa’s digital infrastructure coverage, access, and quality lag behind other regions yet it does not have to be this way because the most transformative interventions are just but a few decisions away,” he stated. “We must all be concerned by the fact that our rate of connectivity is poorer than the existing potential,” he added. The five-day summit has convened ICT thought leaders as well as policymakers from across the continent to assess ideas and partnerships.
Digital Tax Wave Spreads across Africa (Kenyan Wall Street)
African countries are racing to enact rules for non-resident suppliers to account for taxes on electronically supplied services (ESS), a new report by PwC indicates.
Out of the 54 countries in Africa, 21 have already enacted the rules for non-resident suppliers to account for value added taxes or the goods and sales tax on electronically supplied services with five more countries (Botswana, Ethiopia, Mali, Republic of Congo and Rwanda) in the pipeline. Some countries have also introduced a Digital Services Tax (DST) or a similar levy on the gross revenues derived by digital platforms and service providers from certain activities or transitions in their jurisdictions.
“As the digital economy continues to evolve, and as tax authorities continue to adjust to Africa’s remarkable digital transformation, it is essential for businesses to understand and closely monitor tax developments affecting the digital economy in every country where they supply digital services,” notes Job Kabochi, PwC Africa Indirect Tax Leader.
The PwC VAT in Africa Digital Services report notes that tax authorities have taken notice of Africa’s growing digital economy. When digital activities and transactions take place within their jurisdictions or among residents of their jurisdictions, tax authorities have a vested interest in collecting the tax revenue due from these activities.
Four new reports released on Open Internet approaches in Africa (EEAS)
New European Union (EU)-funded reports were released highlighting Open Internet Approaches in four African countries: Burundi, Kenya, Senegal and South Africa. By looking at case studies in Burundi, Kenya, Senegal and South Africa, the four reports unpack Open Internet connectivity as a promoter of human-centric development. They also shed light on the crucial role of a free, global, reliable, affordable and secure internet in driving social and economic growth in line with the United Nations Sustainable Development Goals (SDGs) and the objectives of the African Union’s Agenda 2063.
According to the new reports prepared by a team of independent experts contracted by the European Commission “Digital technologies and the Open Internet are two distinct concepts that, if blended into a consistent policy approach, create a digitisation process that maximises the opportunities for social and economic growth.”
Each of the four reports serve as a roadmap for other countries and regions, for how Open Internet approaches can create an environment that will enable and support digital development, capitalise on its economic potential, while respecting fundamental rights and values.
Digital innovation can revolutionise trade in Africa (Africa LSE)
Africa’s trade landscape is experiencing a transformation, driven by digital innovations that dismantle longstanding barriers for small businesses. These businesses, crucial for growth and job creation, often struggle with financial constraints, adherence to quality standards, limited access to information, and logistical inefficiencies. Ebrima Faal examines these issues and explores how technology is paving the way for a new era in African trade.
Africa Needs $9 Billion to Expand Fuel Infrastructure, Puma Says (BNN Breaking)
Africa must invest $9.3 billion to expand fuel-transportation infrastructure to avoid supply disruptions as demand grows, according to Puma Energy, one of the continent’s biggest fuel retailers.
The continent has a sparse network of fuel pipelines that make up only a fraction of what’s been built in the US. Fuel distribution units of traders including Vitol Group see Africa as a place of transportation growth that’s reliant on gasoline and diesel — which will require investment. “You might have the right price, the right regulation, but if your ports are congested, if the roads are congested, if the pipeline leaks, if there is no storage, you will not have energy security,” Fadi Mitri, head of Africa for Trafigura Group subsidiary Puma, told a conference in Cape Town.
Demand for hydrocarbon fuels will grow 56% in Africa by 2040, while a lack of fuel-storage facilities and port access will create bottlenecks and slow the pace of supply, said Mitri, who cited new research by Puma and consultant Citac.
Africa needs to build more oil infrastructure (Engineering News)
Africa’s mid- and downstream oil products supply infrastructure is ageing and suffers from a lack of investment, outdated policy frameworks and insufficiencies in regional, national and urban energy planning when compared with other regions across the world.
Efforts have also not kept pace with rapidly growing populations and urbanisation trends, which has resulted in fragmented supply routes, bottlenecks and insufficient infrastructure capacity, contributing to an overreliance on trucks, congestion in cities and ports, and disrupted access to energy.
This collectively results in increased costs for governments and citizens, and is impairing the region’s socioeconomic development potential, energy company Puma Energy and Africa energy consultancy CITAC note in their ‘Fuelling Africa’s Potential: Bridging the Gap in Energy Infrastructure’ White Paper. Demand in sub-Saharan Africa for oil products, including gasoline, diesel, kerosene and Jet A1 fuel, increased by 9.2% year-on-year in 2021 and by 3.7% year-on-year in 2022 to reach 91.3-million tonnes.
Hydrogen offers Africa an opportunity as big as its size (Kallanish Commodities)
Africa’s potential in the renewable hydrogen industry has been emphasised by different stakeholders both in the continent and abroad. The Africa Hydrogen Opportunity report published by the Hydrogen Council estimates renewable capacity factors of 69% for wind and 25% for solar, thanks particularly to northern and southern countries. Central African countries enjoy hydropower and in the East African Rift Valley, geothermal potential has been identified. Coupling these resources with abundant land, Africa is strongly positioned to become a renewable hydrogen and derivatives producer and exporter.
The report estimates that countries in the region could capture 15% of the expected globally traded hydrogen volume. Green hydrogen production for export could grow from 1 million tonnes/year in 2030 to 11m t/y in 2050. Overall, renewable hydrogen production could mobilise a cumulative investment of $400 billion in Africa, it forecasts. However, despite the major opportunities highlighted by the Hydrogen Council and a number of other stakeholders, major challenges need to be overcome.
Europe-Africa Forum returns to Marseille on 7 May to promote sustainable development (Afrik 21)
How can Africa and Europe work together to train a new generation of talent and leaders capable of meeting new expectations? This is one of the questions to be answered by the participants expected at the Europe-Africa Forum on 7 May 2024 in Marseille. At least 1,000 participants are expected in France’s second-largest city for this third edition of the forum, whose theme is “Explore, Succeed, Invest”.
“The 2024 event will highlight the challenges, opportunities and synergies between African and European nations, providing a unique platform for dialogue and the exchange of ideas. Africa is undergoing a major transformation, driven by its dynamic demographics and the vitality of its economic and cultural players. With its natural resources of energy and raw materials, Africa is ready to play a central role in global transitions. We are therefore seeking to catalyse these transformations”, say the organisers of this event, which is supported by the Aix-Marseille-Provence metropolitan area and the shipping company CMA-CGM.
Korea-Africa 2024: Prioritise trade, investment, industrialisation, AKEDA urges African leaders (The Sun Nigeria)
Ahead of the Korea Africa Summit 2024 scheduled for Seoul, Korea, from June 4 and 5, a private-public sector group, Africa Korea Economic Development Association (AKEDA), has challenged African leaders to utilise the opportunity offered by the summit to adopt sustainable economic partnership framework aimed at increasing trade relations and investment, inclusive growth, and upward review of official development aid from Korea in Africa.
The summit, the first in the history of Korea-Africa relations to be hosted by the government of Korea, would have in attendance participants from 54 African countries including heads of state and government, ministers, policymakers, private sector leaders, multilateral institutions, and United Nations system, regional development banks, among others.
“The partnership between Africa and Korea would gravitate towards mutually beneficial outcomes and outputs that support the aspirations of everyone. “The recognition of economy and investment potentials of Africa, which receives deserved attention of the government and people of Korea, through the decision to host this auspicious summit is pivotal in the history of Korea-Africa relations in the last 60 years.”
Transcript of African Department April 2024 Press Briefing (IMF)
Let me start with a bit of good news, which is that after four challenging years and multiple shocks, Sub-Saharan Africa’s economy appears to be on the mend. We expect growth to accelerate to 3.8 percent from 3.4 percent last year, after peaking at almost 10 percent in late 2022. We are also seeing inflation having been halved in the early months of this year, thanks to decisive actions by central banks. This includes slower food price increases, a positive development in a region where the cost-of-living crisis has been acute in recent years.
These are encouraging signs, but the region is not out of the woods. Far too many countries still face a funding squeeze. Their borrowing costs are high and funding sources curtailed. Government interest payments now account for about 12 percent of revenues, more than double the level a decade ago, and official development assistance concessional financing has become much more scarce.
What does this mean for countries? It means much needed funds are being diverted from spending on investment development to interest payments, with consequences for the region’s growth potential and its ability to withstand future shocks. Sustaining reforms will be important for macroeconomic conditions to continue to improve. This will ensure that countries in the region can build their resilience to shocks, generate jobs, diversify their economies, and improve living standards.
Global crises fracturing foreign investment, impacting developing economies (UNCTAD)
Launched by UN Trade and Development (UNCTAD) on 23 April, the report entitled “Global economic fracturing and shifting investment patterns” examines the complex landscape of global foreign direct investment (FDI). The report sheds light on ten transformational shifts in investment priorities across industries and regions, shaped by trends in global value chains (GVCs) and geopolitical dynamics, and emphasizes the necessity of integrating sustainability and development into investment strategies.
UN Trade and Development highlights key FDI trends that have evolved over the past two decades. Firstly, the growth of FDI and global value chains (GVCs) is no longer aligned with GDP and trade growth, indicating a significant shift in the global economy. Since 2010, global GDP and trade have continued to expand at an annual average of 3.4% and 4.2% respectively, even amidst rising trade tensions.
By contrast, FDI growth has stagnated near 0%, in the midst of rising protectionism, growing geopolitical tensions and increased investor caution. Additionally, there is a growing gap between the manufacturing and services sectors, with investments increasingly leaning towards services.
Related: Shifting investment patterns: 5 key FDI trends and their impact on development
UN chief urges ‘surge in investment’ to overcome $4 trillion financing gap (UN News)
According to UN estimates, the world is facing an annual financing gap of about $4 trillion to achieve sustainable development, leaving countries with hardly any resources to invest in better education, healthcare, renewable energy or social protection.
“The Sustainable Development Goals (SDGs) are hanging by a thread, and with them, the hopes and dreams of billions of people around the world,” António Guterres said, addressing the UN Economic and Social Council’s (ECOSOC) 2024 Forum on Financing for Development. In particular, the UN chief urged countries to push for the SDG Stimulus of $500 billion annually in affordable long-term finance for developing countries, which he proposed in February 2023.
Recalling that the Stimulus was welcomed by world leaders at the SDG Summit last year, he stressed “now it’s time to move from words to action and deliver affordable, long-term financing at scale.”
DP World publishes Sustainable Development Impact Disclosure (Indian Transport & Logistics)
DP World has published a Sustainable Development Impact Disclosure (SDID), making it the first company globally to adopt and disclose its development impact in countries of focus in accordance with the recently released impact disclosure guidance from the Impact Disclosure Taskforce.
The disclosure serves as a framework for private sector companies and sovereigns, to demonstrate how they drive transformation through large-scale infrastructure development into emerging markets and developing economies. Sultan Ahmed bin Sulayem, DP World Group Chairman and CEO said: “This disclosure not only demonstrates our commitment to sustainable development but also sets a path for industry-wide accountability. It’s a call to action, to catalyse positive change and drive sustainable infrastructure development on a global scale.”
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White Paper on immigration fails Africa’s free trade aspirations (The Mail & Guardian)
Andrew Dabalen: Funding squeeze not behind Africa yet (The East African)
IDA-A Crucial Player in the Evolving Global Aid Landscape (World Bank)
Trade and investment core statistics book (GOV.UK)
Funding the Future: How MDB Reform Paves the Way for SDG Progress (Modern Diplomacy)
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South Africa calls for greater engagement with Turkish businesses (Daily Sabah)
Top South African trade official emphasized Monday the vital importance of bilateral trade relations with Türkiye, calling on the Turkish business world that wants to expand to Africa to boost investment and commercial relations. As a member of the BRICS group alongside Brazil, Russia, India and China and a G-20 member, South Africa ranks among Africa’s leading economies due to its robust financial infrastructure and advanced mining sector.
Continuing its status as Türkiye’s most significant trading partner in sub-Saharan Africa, South Africa hosts all of the continent’s top 10 companies. “I believe that the trade relations between South Africa and Türkiye are absolutely vital,” South African Trade and Industry Minister Ebrahim Patel said in an interview with Anadolu Agency (AA). He emphasized Türkiye’s strategic location, large population and significant economy, highlighting South Africa as the industrial hub of sub-Saharan Africa, the continent’s industrial base.
Patel noted that this situation makes Türkiye and South Africa strong partners, pointing out that Turkish companies already have significant investments and production centers in South Africa.
South Sudan oil industry: South Africa’s deepens ties (The Exchange Africa)
In a move marking the strengthening bilateral relations between South Africa and South Sudan, the Strategic Fuel Fund (SFF), South Africa’s state-owned petroleum company, convened a key meeting with South Sudan’s national oil company, Nilepet, in Juba last week. The meeting was a highlight of South African President Cyril Ramaphosa’s state visit, underscoring the growing economic ties between the two nations.
The SFF, which operates Block B2 in South Sudan and collaborates with Nilepet through the Nile Orange joint venture, has recently completed a major phase of its oil and gas exploration campaign in Jonglei state. The initial aerial survey of the block was finished last month, setting the stage for further exploration activities.
During the meeting, both companies shared updates on the progress of their joint venture and outlined the next steps for the project. A crucial component of the ongoing work will be the environmental impact assessment scheduled over the next six months, starting with a site visit in Bor, the capital of Jonglei.
Namibia 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 (WCO), in partnership with the Namibia Revenue Authority (NamRA), held a national training workshop on rules of origin for Namibia Customs. The workshop was held in Windhoek, Namibia, from 15 to 19 April 2024 with the objective to assist NamRA in enhancing its knowledge and application of preferential rules of origin and contribute to a seamless implementation of the AfCFTA and relevant FTAs.
This workshop was conducted as part of the comprehensive technical assistance and partnership with NamRA, including in relation to the implementation and launch of an advance rulings system in Namibia in July 2022, and builds on the acquis from an intermediate training conducted in January 2023. The support provided under the RoO Africa and the EU-funded HS Africa Programmes allows for the deployment of all-inclusive and wide-ranging capacity building activities, to enhance the infrastructure and capacity of NamRa both on RoO and HS.
Kenya opens window for Uganda powder milk (The East African)
Authorities in Nairobi have placed order for more suppliers of milk powder from Uganda following reports that a drop in milk production is expected in the coming months. The EastAfrican has learnt that the Kenya Dairy Authority has opened a window for more milk powder imports from Uganda as the July-August and December-February dry months approach. During these months, Kenya is usually plunged into a liquid milk production deficit, which pushes up prices.
“Kenya is to increase the number milk importation permits to more milk powder from Uganda which they have been restricting to be landed on their market,” Akankiza Mpiira, executive director at Uganda’s Dairy Development Authority told The EastAfrican.
Dairy industry players say that for each kilogram of milk powder locked out, a market for 10 litres of liquid milk is created. “Liquid milk exports are accepted in Kenya but milk powder is restricted. This is because each kiligramme of powdered milk stopped, the market for 10 litres of liquid milk is protected,” the DDA says.
Kenya loses 42pc of Tanzania maize imports, seeks alternative sources (The East African)
Non-tariff barriers have pushed down Kenya’s maize imports from Tanzania to 63 percent of the total imports of the grain in 2022/2023 marketing year, from 97 percent in 2021/2022.
A new report by the US Department of Agriculture (USDA) shows that Kenyan traders imported maize from Tanzania, Zambia, Uganda and South Africa, but imports from Tanzania dropped as a result of the imposition of export restrictions by Dodoma. Tanzanian restrictions on maize exports were in the form of requirements that exporters to Kenya apply for export certificates.
“Kenya traders have begun to source more corn from non-traditional sources such as Zambia and South Africa,” reads the report.
Historically, Kenya has sourced most of its imported corn from Tanzania. However, traders have had difficulty exporting corn from Tanzania following the implementation of new export procedures. In the past, the Government of Tanzania has imposed export bans or restricted access to export permits when domestic supplies are low.”
Imports from Zambia and South Africa increased to 13 percent and 10 percent from one percent and 0.38 percent respectively. Maize imports from Uganda constituted five percent of the total maize imports from 0.36 percent.
Tax pain for traders as states push for more revenues to pay debt, run projects (The East African)
Traders across the region are up in arms against heavy taxation by the ruling regimes that are hard-put to fund burgeoning budgets amid a cash crunch caused by debt servicing and slowing economies. The governments of Kenya, Uganda and Tanzania have proposed a raft of tax proposals aimed at generating more revenues despite protests from taxpayers.
Afreximbank pledges to assist Zim on framework for SME financing (NewsDay)
Afreximbank has pledged to assist Zimbabwe to develop a model law on factoring as the bank tips the sale of accounts receivables at a discount as a solution to plug the financing gap affecting small to medium enterprises (SMEs).
Speaking at a two-day regional conference on factoring, receivable finance and credit insurance which opened in Harare on Monday, Afreximbank executive vice president in charge of Intra African Trade Bank Kanayo Awani said factoring would plug the financing gap faced by SMEs.
A model law on factoring that enabled countries to create a conducive legal and regulatory environment was developed in 2016 and has since been used by seven countries in passing factoring laws.
WCO IPR border enforcement workshop held in Mozambique (WCO)
From 15 to 19 April 2024, the World Customs Organization (WCO) conducted a national workshop on the protection of intellectual property rights (IPR) in Maputo, Mozambique. The methods used by criminals to counterfeiting and piracy of goods have become increasingly sophisticated in recent years. As a result, Customs must reaffirm the importance of IPR protection and, where necessary, update its officers’ knowledge while adapting its strategy.
This workshop was in keeping with the WCO’s approach under its IPR Strategy, aimed at combating IPR infringements and piracy in international trade, a central pillar of which is the organization of capacity-building activities.
This workshop gave experts an opportunity to present to participants the WCO’s new tool titled “Case studies and risk indicators to identify IPR, health and safety infringing goods related to e-commerce” and to explain how it could support Customs officers’ work when processing goods traded through e-commerce. Participants also familiarized themselves with the features of the IPR CENcomm tool, used for secure communication in relation to IPR infringements.
Trade Policy Review: Morocco (WTO)
Since its last trade policy review (TPR) in 2015, Morocco was able to increase its GDP per capita from USD 3,236 to USD 3,570. That period was also marked by a major recession in 2020 (-7.2%), owing to the effects of the COVID 19 pandemic. However, a strong rebound in 2022 enabled the Moroccan economy to return to its pre-pandemic level very quickly.
Dominated by manufactured goods, Morocco’s international trade grew considerably between 2015 and 2022. The European Union remained the Morocco’s main trading partner. Moroccan exports are fairly diversified, consisting primarily of chemicals, vehicles and transport equipment, electrical machinery and equipment, textiles, vegetable products and mineral products. Historically, Morocco has run a services balance surplus, largely thanks to tourism. Morocco remains highly attractive to foreign investors, as illustrated by the fact that the stock of foreign direct investment (FDI) increased from USD 49.7 billion in 2015 to USD 73.0 billion in 2021.
Nigeria, China Sign Free Trade Zone Agreement To Boost Economy (TVC News)
Nigeria’s fertile land stands as a beacon of hope, providing a fertile ground for farming and trade and also accelerate transformative changes across Africa. This was the collective opinion of Stakeholders at the investment summit and Utopia free trade zone establishment ceremony in Nigeria.
Gathered in anticipation of a landmark moment are, These are investors from the financial sector, government functionaries, traditional rulers, and key figures from various ministries, departments, and agencies. They are here to witness the dawn of a new era, which is the signing of a memorandum of understanding on the Utopia Free Trade Zone between Nigeria and China. For these stakeholders, the main objective is to boost the Nigerian economy. They say that Nigeria has a significant advantage in fostering economic growth throughout the African continent.
ECOWAS Investment Forum shows opportunities in West Africa (ITC)
The ECOWAS Bank for Investment and Development (EBID) hosted the event in Lome, Togo, from 4 to 5 April. Togo Prime Minister Victoire Tomegah Dogbé opened the forum, held under the theme ‘Transforming ECOWAS Communities in a Challenging Environment’. She emphasized the need for a wide range of investment across human capital, energy, the digital economy, and infrastructure.
Discussions during the forum addressed crucial topics such as food security, fortifying agricultural supply chains, and enhancing security in West Africa. Panellists proposed strategies for tackling challenges in agriculture, underscoring the significance of cooperation and innovation for sustainable development. They underscored major challenges around access to finance, which seriously affects small businesses, particularly for agribusinesses and young entrepreneurs. Among the solutions discussed were ways development finance institutions such as EBID could make facilitate access to loans.
This is one of the issues that the International Trade Centre (ITC) addresses with the ECOWAS Commission through the West Africa Competitiveness Programme (WACOMP). WACOMP facilitated the participation of nine investment promotion agencies from West Africa. These agencies showcased investment projects in their countries. The delegates engaged with business leaders on investments in critical areas such as agriculture, infrastructure development, support to small businesses, energy and climate change.
African Development Bank rapidly exceeding climate finance targets (AfDB)
African Development Bank Group President Akinwumi Adesina on Thursday called for more urgent action as climate change continues to wreak havoc in many African countries. He was speaking at a high-level roundtable on climate finance convened during the International Monetary Fund and World Bank Spring Meetings.
Adesina said the ongoing devastating drought in several parts of Africa underscored the need for all stakeholders to come together to accelerate support and financing for Africa. “Africa is in the eye of the storm from climate change, accounting for 9 out of the 10 most vulnerable countries to climate change globally,” Adesina told participants. He added: “But Africa is not getting what it needs to adapt to climate change. Africa received just $30 billion per year for climate adaptation, while its needs are $277 billion per year, leaving a huge financing gap.”
Measuring Climate Results (World Bank)
At COP28, the Multilateral Development Banks (MDBs) agreed to developing a common approach for measuring climate results to complement tracking of climate finance. The MDBs have made significant progress in scaling-up climate finance commitments. However, there is recognition that climate finance neither measures the results nor the outcomes of climate actions.
This Note, MDB Common Approach to Measuring Climate Results, presents the first common structure to measuring climate results, a framework to define, measure, and link global progress on climate mitigation and adaptation with MDB results. This is a significant step which aims to provide stakeholders with a clearer view of the climate results of the MDBs related to the goals of the Paris Agreement.
AfDB secures US$7.3million fertilizer deal for African farmers (The Independent Uganda)
The Africa Fertilizer Financing Mechanism (AFFM) has secured a CAD$10 million (US$7.3 million) funding commitment from Global Affairs Canada, aimed at enhancing food production and increasing income for about 800,000 smallholder farmers across Africa. This financial boost is part of a strategic initiative to empower fertilizer importers and aggregators with access to credit to ensure broader distribution and use of fertilizers across the continent.
Signed on March 25, this year, the funding agreement has earmarked (US$7.3 million, Shs 28bn) for the AFFM’s ‘Fostering Africa’s Agricultural Productivity through Fertilizer Value Chain Financing’ (FOSTER) programme. This programme is designed to accelerate the use of fertilizers and improve agricultural productivity in the African Development Bank’s (AfDB) regional member countries through innovative financing solutions.
How to end hunger in sub-Saharan Africa: fight inequality, gender imbalances and climate change (The Conversation)
A greater part of Africa’s population can’t afford a healthy diet than any other regional population. Food insecurity in sub-Saharan Africa is caused by climate change, high levels of poverty, rapid population growth, low economic growth, inadequate infrastructure and conflicts. Women are the backbone of agricultural labour in the region. The problems of limited access to land, water and technology faced by these women also worsen food insecurity.
People have a right to food – to produce food, to be free from hunger, and to participate in policy decisions that affect food systems. The right to food is also recognised and protected by various international frameworks and agreements. But in sub-Saharan Africa, access to food has long been regarded as a privilege rather than a basic human right.
Our research found that governments across sub-Saharan Africa need to target inequality, gender imbalances and environmental degradation if they want to end hunger. This is because food sovereignty is very tightly interlinked with social justice and sustainable development.
Africa’s share of global poor rises significantly – UNECA (APAnews)
Africa’s share of global poor people has increased significantly, with one reason being low scientific and technological progress across the continent, a senior official of the United Nations Economic Commission for Africa (UNECA) said.
At the opening of the Sixth African Science, Technology and Innovation (STI) Forum on Sunday in Addis Ababa, the capital of Ethiopia, Deputy Executive Secretary of UNECA Antonio Pedro said Africa’s share of global poor people increased from 15 percent in 1990 to 63 percent in 2018 and may reach 90 percent by 2030.
Pedro said Africa must invest in human capital development, learn how to produce, sell and use emerging technologies such as artificial intelligence and genomics that are transforming every aspect of life.
In the context of the 33rd Session of the FAO Regional Conference for Africa being held this week in Morocco, the Director-General of the Food and Agriculture Organization of the United Nations (FAO) QU Dongyu called for increasing collaboration and investment for a more efficient, inclusive, resilient, and sustainable livestock sector in the continent.
In a special event organized by the African Union Commission aimed to provide a space to exchange knowledge aimed at the effective implementation of the Livestock Development Strategy for Africa, Qu emphasized the significance of the Strategy, hailing it as a major transformation instrument to guide innovative actions and achieve the sustainable development of the sector as outlined in FAO’s Sustainable Livestock Sector Transformation vision.
Qu explained that while 60 to 80 percent of rural households in most African countries rely on livestock for various purposes, the consumption of animal-source food in Africa remains relatively low but is expected to increase by 2050. This increase, he noted, would be driven by factors such as population growth, economic development, urbanization, and dietary shifts.
Africa can build a more prosperous, just, and sustainable future if countries invest in science, technology and innovation, these are sentiments echoed by African leaders, representatives and experts at the opening of the two-day Sixth African Science, Technology and Innovation (STI) Forum in Addis Ababa Ethiopia.
For his part, Antonio Pedro, Deputy Executive Secretary for Programme Support at the ECA said Africa must invest in human capital development, research and development (R&D), and in learning how to produce, sell and use emerging technologies such as artificial intelligence and genomics that are transforming every aspect of life. “Technology should advance the wellbeing of the millions of households, farmers, fishermen, and many others that still use basic tools to lift themselves out of extreme poverty,” said Mr. Pedro.
“Science and technology can play an important role in increasing the efficiency of service delivery to the poor, monitoring living conditions, predicting impending crises in crowded or remote areas and informing decision-making during crises,” said Mr. Pedro.
China needs to align investments with Africa’s energy transition goals (The Independent Uganda)
China should now focus its economic engagement with Africa towards supporting the continent’s energy access and energy transition objectives, recommends a new study by Boston University’s Global Development Policy Centre and the African Economic Research Consortium. The advice, the study notes, aligns with the overarching aims of the United Nations’ 2030 Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063.
The study, published this month, analyses two decades (2000-2022) of the China-Africa economic relations, including trade, finance, and foreign direct investment (FDI), and highlights the need for a shift in the nature of the relationship. Moses Oyintarelado, a data analyst and database manager at Boston University’s Global China Initiative, says “future Chinese economic engagement with the continent especially in matters finance, investors, companies and trade facilitators, should now focus more on capital for electrification projects and renewable energy technologies that utilize Africa’s primary commodity inputs.”
According to the study China has become many African countries’ lead trading partner, surpassing the United Kingdom and the United States with trade between the two partners (imports and exports of goods) growing significantly from US$11.67bn in 2000 to a peak of US$257.67bn in total trade in 2022.
China-Africa trade gets a boost from critical minerals needed for EV battery production (South China Morning Post)
Trade between China and Africa defied economic headwinds in the first quarter of 2024, with two-way trade growing by 5.9 per cent year on year to US$70.86 billion, according to the latest customs data. This was despite a property crisis in China which affected copper demand, with a downturn in copper prices towards the end of 2023.
Mixed efforts to achieve energy goals highlighted at the end of Sustainability Week (UN News)
The unanimous declaration of the Decade of Sustainable Energy for All in 2012 aimed to hone on the importance of improving “access to reliable, affordable, economically viable, socially acceptable and environmentally sound energy services and resources for sustainable development.”
Dennis Francis said there have been both achievements and shortcomings in meeting the goal throughout the decade. He noted that developing countries experienced a 9.6 per cent annual growth in renewable energy installation and the global population with access to electricity has increased from 87 per cent to 91 per cent since 2015. Yet, he said, “the pace of energy transformations is still much too slow – and the benefits are not shared equitably.”
Sustainable transport, imperative for development, UN tells Nigeria, others (The Sun Nigeria)
The President of the 78th Session of the United Nations General Assembly (UNGA), Dennis Francis, has told Nigeria and other countries that sustainable transport is not an option, but an imperative for resilient, inclusive, and sustainable development. Francis stated this during the High-Level Meeting on Sustainable Transport at the United Nations Headquarters, New York, United States.
Francis said the crucial significance of the transport sector in the global economy cannot be overstated, adding that transportation is an industry in its own right, but it is also a vital input into considerable other industries and sectors, that themselves add to global output and growth. Francis also said transportation is a lifeline connecting communities and markets, facilitating trade, and thus driving economic growth.
World Creativity and Innovation Day 2024: ‘Transforming World, Promoting Sustainable Development’ (ETV Bharat News)
The day is focused on achieving Sustainable Development Goals through promoting and celebrating creativity and innovation. The United Nations (UN) recognised the importance of creativity and innovation in promoting sustainable development and included World Creativity and Innovation Day as a part of its initiative “Transforming our world: the 2030 Agenda for Sustainable Development.”
Improving the measurement of the creative economy (UNCTAD)
As a relatively new sector of the economy, the creative industries are hungry for reliable and internationally comparable data. But changes are underway. Ahead of World Creativity and Innovation Day on 21 April, UN Trade and Development puts forward an updated statistical framework, aimed at advancing the measurement of the creative economy.
“The framework represents a significant step forward in addressing the challenges of measuring the creative economy and trade in creative goods and services,” says Anu Peltola, director of statistics service at UN Trade and Development. Ensuring relevance and adaptability, the framework aligns with latest global statistical classifications for industrial activities and international merchandise trade statistics. It offers a tool to better quantify the economic impact of creative industries, especially where specific definitions and methodologies are lacking.
While the creative industries are an evolving concept, they generally entail creating, producing and distributing goods and services that use creativity and intellectual capital as primary inputs. Some examples can be audiovisual products, design, media, performing arts, publishing and visual arts. As one of the world’s most rapidly expanding sectors, the creative economy helps power income, jobs, and export earnings. Latest data from UN Trade and Development re-emphasize the sector’s significant contribution to global trade.
Paper: Advancing the measurement of the creative economy: A revised framework for creative industries and trade (UNCTAD)
Related: West Africa’s fashion designers are world leaders when it comes to producing sustainable clothes (The Conversation)
Secretary-General calls for UN 2.0 to tackle 21st century challenges (UN News)
Amid multifaceted crises ranging from conflicts to climate, and poverty and inequality, the world looks to the UN “to help deliver the better, safer and greener world we need,” Mr. Guterres said. “But we cannot solve 21st century problems with 20th century tools – we need a UN 2.0,” he stressed, in a message opening the UN 2.0 week.
The transformation in skills and culture, encapsulated in the UN chief’s vision of a UN 2.0, is focused on fostering cutting-edge capabilities in data, digital solutions, innovation, foresight and behavioural science – to deliver stronger results and help countries accelerate efforts to achieve the Sustainable Development Goals (SDGs).
In his message on Monday, Mr. Guterres also emphasized the need for a “forward-thinking culture” at the Organization, powered by rapid technological advances.
World Bank official calls for shake-up of G20 debt relief scheme (The Guardian)
The mechanism for providing debt relief to the world’s poorest countries is failing to produce results and requires a major rethink, a senior official at the World Bank has said. Indermit Gill, the bank’s chief economist, said that after four years the G20’s common framework – designed to speed up and simplify debt restructuring – had not provided a single dollar of new money.
More than half the 75 countries deemed poor enough to be eligible for concessional finance from the World Bank are either in distress or close to it, and Gill said cripplingly high repayments were entrenching poverty.
New Financing Tools Receive Major Funding Boost (World Bank)
New financial instruments designed to boost lending capacity and enable the World Bank Group to take on more risk for shared global challenges have received a significant endorsement. A set of 11 countries announced commitments today for the Portfolio Guarantee Platform, hybrid capital mechanism, and new Livable Planet Fund totaling $11 billion.
The World Bank Group’s unique leveraging capability enables the resources pledged to hybrid capital and the Portfolio Guarantee Platform to be multiplied six to eight times over 10 years. Under certain conditions, the leverage amount could reach tenfold.
Multilateral Development Banks Deepen Collaboration to Deliver as a System (AfDB)
The leaders of 10 multilateral development banks (MDBs) today announced joint steps to work more effectively as a system and increase the impact and scale of their work to tackle urgent development challenges.
In a Viewpoint Note, the leaders outlined key deliverables for joint and coordinated action in 2024 and beyond building on the progress since their Marrakesh statement in 2023, as their institutions work to accelerate progress toward the Sustainable Development Goals (SDGs) and to better support clients in addressing regional and global challenges.
Chair’s Statement: 109th Meeting of the Development Committee (World Bank)
Development Committee members discussed the global macroeconomic and financial impact of current wars and conflicts including the war in Ukraine, the humanitarian crisis in Gaza, as well as the shipping disruptions in the Red Sea. While recognizing the Development Committee is not the forum to resolve geopolitical and security issues and these issues will be discussed in other fora, Development Committee members acknowledged that these situations have significant impacts on the global economy. Today’s era must not be of war and conflict.
G20 Leaders Urged to Finance Global Sustainable Development (Earth.Org)
The letter to G20 leaders came ahead of a $11-billion pledge by 11 wealthy nations to fund World Bank efforts to tackle global challenges and boost sustainable development.
G20 leaders were urged to reform the global financial system and step up efforts to achieve global sustainable development and fight the climate crisis in an open letter published ahead of last week’s Spring meetings of international financial institutions.
In the letter, the 135 signatories, which include actor Stephen Fry, film producer Richard Curtis, and singer Annie Lennox, appealed to the world’s largest economies to “triple their investments in multilateral development banks, end crippling debt for low-income countries, and make polluters pay.
New sustainability approaches in shipping: Strategies for decarbonising the industry (Trade Finance Global)
In an era where environmental concerns are at the forefront of global discussions, the maritime industry, often seen as a major contributor to pollution, is under increasing pressure to adopt sustainable practices.
With approximately 90% of global trade relying on maritime transport, finding ways to mitigate the environmental impact of shipping has become imperative. Fortunately, innovative approaches are emerging, offering hope for a more sustainable future in the shipping industry.
The shipping industry is actively steering toward sustainability, addressing environmental challenges and striving for a greener future. Decarbonising international shipping is a critical endeavour to decrease the industry’s impact on the environment.
Quick links
Period poverty millions bleed in silence as prices of sanitary pads hit the roof (Vanguard)
‘Triple spending’: Zimbabweans bear cost of changing to new ZiG currency (New Zimbabwe)
Africa Is Ripe For US Business Interest And Investment (International Business Times)
What’s Next for the WTO? (Council on Foreign Relations)
Five Schools of thought reflect shipping executives’ current thinking on critical maritime issues (UNCTAD)
Working Party reviews new notifications and hears calls for greater transparency (WTO)
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Patel welcomes VW’s R4 billion investment in SA (SAnews)
Volkswagen South Africa’s (VWSA) investment of R4 billion in their assembly plant in Kariega, in the Eastern Cape, has been welcomed by Trade, Industry and Competition Minister, Ebrahim Patel. The investment will introduce a new SUV model built on the Polo platform. The move also positions the facility as the sole manufacturer of the Polo brand globally and the new SUV model will be exported to global markets.
In the last five years, the department said government has undertaken significant work to bolster automotive production in South Africa. Patel highlighted 10 actions, which have been taken in the sixth administration to support the industry.
Private renewables procurement may mitigate boom-bust cycles curbing South Africa’s green industrialisation (Engineering News)
Published ahead of the release of the much-anticipated South African Renewable Energy Masterplan (SAREM), which will outline the country’s official approach to localising renewables value chains, GreenCape’s ‘Large-scale Renewable Energy’ report forecast that there will be about 32 GW of installed renewables capacity in South Africa by 2030.
Published as one of three sector-focused national studies released as part of its 2024 Market Intelligence Report, the non-profit organisation said the emergence of private procurement should help mitigate the boom-bust cycles associated with the market’s previous heavy reliance on public procurement.
Stakeholders advocate for enhanced mail security standards amid e-Commerce surge (Nile Post)
Amid the rapid growth of electronic communication and e-commerce, stakeholders have underscored the urgent need for improved mail security standards, cybersecurity measures, and mandatory data exchange protocols. This call to action emerged during the Sectoral Workshop on Supply Chain Security and Electronic Advanced Exchange (EAD) convened by the Uganda Communications Commission (UCC).
Julianne Mweheire, representing the executive director of UCC, emphasised the importance of addressing vulnerabilities in the mail system. “As electronic communication continues to flourish, it’s imperative that we bolster our mail security standards to mitigate potential risks,” stated Mweheire.
Dawn M. Wikes, the programme manager for security at the Universal Postal Union, echoed similar sentiments, stressing the necessity for collaborative efforts to enhance cybersecurity across postal networks. “The evolving landscape of e-commerce demands a proactive approach towards safeguarding mail integrity and data exchange,” remarked Wikes.
State moves to promote avocado, coffee and cotton value chains (Kenya News Agency)
Machakos County has been identified as one of the counties for the promotion of avocado, coffee, and cotton value chains. Cabinet Secretary for Investment, Trade, and Industry Rebecca Miano highlighted that Machakos is among the counties that have strategized to become centres of investment promotion and facilitation in industrial and value chain development following devolution. Doing so, Miano added, made the county an ideal investment hub and destination in the country.
Miano also acknowledged that the county, in its annual development plan, prioritised food security, socio-economic empowerment, and infrastructure development as the three pillars in transforming the livelihoods of residents, which aligns with the government’s Bottom-Up Economic and Transformation Agenda (BETA).
Tanzania-Malawi Diplomatic Tensions Rise Over $30M Port Project (Business Day Africa)
Tanzania and Malawi are on the brink of a diplomatic standoff following Dodoma’s decision to commence the upgrade of Mbamba Bay Port, situated on the shores of Lake Malawi. Lilongwe accuses Tanzania of initiating the project without consultation, given the contested nature of the port between the two nations.
Malawi has formally requested Tanzania to suspend the project, a move likely to escalate tensions between the neighbouring countries. In a letter to Tanzanian authorities, the Government of Malawi asserts that proceeding with the project on Malawian territory without consent is both irregular and illegal. Malawi insists that the project should cease until proper consultations are conducted and consent is obtained from the Malawian government.
‘Efficient transport system key for horticulture exports’ (The Herald)
As Zimbabwe marches towards attaining Vision 2030, the Horticultural Development Council (HDC) is engaging Government to facilitate the upgrading of roads and border facilities for the easy conveyance of horticultural exports. According to HDC, each year trucks carry some 36 000 tonnes of fruit grown by farmers through the Chipinge-Birchenough Bridge Road. In essence, that is 1 440 twenty-five-tonne trucks yet the road is in bad shape. The deteriorating condition of roads has emerged as a significant obstacle to the transportation of produce and is negatively impacting the quality and profitability of exports, as produce is often damaged along the way.
Burundi, Kenya only countries with more expensive fuel than Uganda in EAC (Monitor)
Uganda currently has the third most expensive fuel in the East African region, according to a global fuel price tracker. A comparison by GlobalPetrolPrices.com – a site that tracks fuel prices globally – indicates that a litre of petrol in Uganda costs an average of $ (Shs5,529), which is slightly lower compared to Kenya and higher than what is charged in Tanzania
In East Africa, GlobalPetrolPrices.com data indicates that Kenya has the highest price for diesel with a litre costing an average of $1.487 (Shs5,666). Kenya is followed by Burundi with a litre going for an average of $1.476 (Shs5,624). Fuel prices remain a sticky issue across East Africa with an upward price movement impacting growth of the region and in particular economic health of member states.
EAC shelves one stop border post inspection at Namanga (IPPMedia)
The East African Community (EAC) has abruptly suspended the high-level border sensitization and inspection mission which was planned at the Kenya and Tanzania One Stop Border Post of Namanga. A statement released yesterday by EAC spokesperson, Simon Owaka, said the decision was taken due to some unforeseen circumstances. Originally scheduled to take place on 19th April, 2024, the mission aimed to assess the performance of One Stop Border Posts (OSBPs), identify areas for improvement, and review the status of implementation of agreed action plans.
“While this postponement is regrettable, the EAC remains steadfast in its commitment to fostering regional cooperation and enhancing border efficiencies,” reads part of the statement, adding that the EAC was actively working to reschedule the mission, and the new dates will be announced in due course.
From previous visits at other borders, it was discovered that there was a significant increase of traffic across the Uganda and South-Sudan border, indicating the growing importance of efficient trade facilitation measures between the two East African countries. Experts however point out the importance of consolidating various government agencies into one central location to expedite clearance times and simplify procedures for cross-border trade.
Africa’s Drought Ripples Through Global Food Trade (Bloomberg)
A devastating El Niño-induced drought across a swath of southern Africa is sending ripples through global food trade. Dry and hot weather in Malawi, Zambia and Zimbabwe has decimated corn crops, prompting the countries to declare a national state of disaster in recent months. South Africa, the region’s top producer, has seen its output slashed by at least a fifth.
They’re now turning to other producers to plug the gap. Zimbabwe, whose corn output is likely to plunge by about 60%, is considering importing corn from Brazil for the first time in a decade. Zambia is talking to Tanzania and Uganda about imports. And South Africa may need to carry out significant imports of white corn for the first time since 2017.
Africa’s agribusiness sector can drive economic success (The Exchange Africa)
African economic growth remains commodity-based, mainly on commodity exports, with minimal processing and value addition involved. To foster sustainable and inclusive growth and development in Africa, there is an urgent need to promote a new development approach based on exploiting the continent’s full agribusiness potential.
Some pressing issues call for a reorientation to support agribusiness and agro-industrial development, namely, poverty reduction and ensuring equitable growth patterns that will address the concentration of employment and livelihoods in the agricultural sector.
An agribusiness development path involving incredible productivity growth throughout the entire agribusiness value chain—covering farms, firms, and distributors—represents a solid foundation for rapid, inclusive economic growth and poverty reduction.
Africa’s immense economic potential is being undermined by non-transparent resource-backed loans that complicate debt resolution and compromise countries’ future growth, African Development Bank President Akinwumi Adesina said on Thursday. Adesina highlighted the challenges posed by Africa’s ballooning external debt, which reached $824 billion in 2021, with countries dedicating 65% of their GDP to servicing these obligations. He said the continent would pay $74 billion in debt service payments this year alone, a sharp increase from $17 billion in 2010.
Regional Economic Outlook for Sub-Saharan Africa, April 2024 (IMF)
Sub-Saharan Africa, home to 30 percent of the world’s critical minerals, is on the brink of a major transformation with the global move towards clean energy. Whereas the extraction of select minerals could boost the region’s GDP by 12 percent or more by 2050, advancing beyond exporting raw materials to developing processing industries presents an even larger opportunity.
A regional strategy built on cross-border collaboration and integration can leverage the diversity of minerals and create a larger, more attractive regional market for much needed investment. Moreover, structural reforms at the country level to nurture domestic firms in processing and supporting industries, while steering clear of inward-looking industrial policy, will amplify the gains from these minerals.
Unlocking this potential can drive broader economic development, encourage technology transfer, and ensure sustainable, higher returns from the region’s critical mineral resources. Be it extraction or processing, this transition requires sound fiscal regimes and policies to manage these gains responsibly.
BRICS grain cartel unlikely (The Western Producer)
Russia is spearheading efforts to establish an OPEC of the grain trade, but industry officials in North America doubt it will happen or that it will have much influence if it does. Russia is urging the BRICS trade alliance to form an inter-bloc grain exchange, according to an article published by World Grain.
“The officially declared purpose of the alliance is to facilitate trade between member states, but analysts warn that the new structure will aim to become an analogue of the Organization of the Petroleum Exporting Countries (OPEC) for the global grain market, with the goal of influencing free pricing,” stated the article.
The grain exchange proposal was first tabled by the Russian Union of Grain Exporters (RUGE) in December 2023 but didn’t gain traction until March when the idea was endorsed by Russian President Vladimir Putin, stated the World Grain article. Putin said it was a good idea and promised to work on it at the top level of government.
Women should be empowered in tech and entrepreneurship: BRICS CCI Report (ThePrint)
A new report by the BRICS Chambers of Commerce and Industry, titled “New Era of BRICS – Horizons in Tech and Business for Women Empowerment,” highlights the evolving landscape of technology and entrepreneurship for women across the BRICS nations. It also indicates the progress made and the persistent challenges faced by women in STEM sectors. The major highlights of the report include the critical role of women empowerment in achieving Sustainable Development Goals (SDGs) and fostering economic and social growth.
Pandor welcomes Egypt into family of BRICS nations (SAnews)
International Relations and Cooperation Minister, Dr Naledi Pandor, has welcomed Egypt into the family of BRICS nations. “This development further enhances the role the South plays in global matters,” she said on Friday. Pandor was speaking in Pretoria where she was co-chairing the 10th Session of the Joint Commission for Cooperation (JCC) with her counterpart, Egypt Minister of Foreign Affairs, Sameh Shoukry.
The Minister announced on Friday that a decision on the Business Council has been taken and once operational, this structure will go a long way in coordinating and galvanising trade and investment opportunities. She also asked her counterpart to take advantage of the opportunities provided by the African Continental Free Trade Agreement (AfCFTA), which will facilitate easier trade.
Energy transition requires cooperation between all G20 countries (G20 Brasil 2024)
On Monday, April 15, the Brazilian Minister of Mines and Energy, Alexandre Silveira, arrived at the G20 headquarters in Brasilia for the first day of the face-to-face meeting of the Energy Transitions Working Group. During a press conference, he spoke about Brasil’s potential in renewable energies and access to financing for the energy transition.
The minister also stressed the importance of cooperation between all countries, since carbon dispersion has no borders. In addition to arguing that the energy transition cannot be launched without recognizing that the 4.5 trillion dollars established in the DUBAI COP, for the production of clean and renewable energies by 2030 will only happen if industrialized countries start to comply with the Copenhagen Accord. The Accord established 100 billion dollars in yearly clean energy investments from 2020.
Assembly President calls for massive investment in sustainable infrastructure (UN News)
In a special meeting dedicated to building resilience and promoting sustainable development through infrastructure connectivity, Dennis Francis emphasised the importance of quality and endurance.
“Quality, reliable, sustainable and resilient infrastructure – including regional and transborder infrastructure – is important to sustain trade and commerce, facilitate effective transportation, connect us to virtual grids, maintain energy flows and make populations safer against natural hazards,” the Assembly President said. He stressed the urgency of adapting transport infrastructure to withstand both human-induced and natural disasters exacerbated by climate change.
Chair’s Statement Forty-Ninth Meeting of the IMFC (IMF)
A soft landing for the global economy appears to be drawing closer. Economic activity has proved more resilient than expected in many parts of the world, though it continues to diverge across countries. However, medium-term global growth prospects remain weak. Ongoing wars and conflicts continue to impose a heavy burden on the global economy. Even though inflation has fallen in most regions, owing to the unwinding of supply shocks and the effects of tight monetary policy, its persistence warrants caution. …
We emphasize the importance of international cooperation to improve the resilience of the global economy and the international monetary system. We will act collectively, as appropriate, to support climate and digital transitions, including artificial intelligence, while accounting for country-specific circumstances. We reiterate our commitments on exchange rates, addressing excessive global imbalances, and governance, and our statement on the rules-based multilateral trading system, as made in April 2021, reaffirming our commitment to avoid protectionist measures. We will also continue working together to strengthen the global financial safety net and address global debt vulnerabilities. We will continue supporting vulnerable countries as they undertake reforms to tackle their vulnerabilities and address their financing needs.
See also: Global Sovereign Debt Roundtable (World Bank)
What Africa should push for in Bretton Woods debt review (The East African)
One of the highlights of the just concluded International Monetary Fund (IMF) and World Bank Spring Meetings in Washington, DC, was the announcement that the two Bretton Woods lenders are working to review the DSA framework for low-income countries within the next two years.
The DSA framework for low-income countries was conceived in 2005 when the executive boards of the IMF and the World Bank’s concessional arm, the International Development Association, agreed to adopt it as a tool that would help guide the borrowing decisions of low-income economies based on their funding needs and with due regard to their ability to comfortably service obligations.
Coming at a time when Ghana, Zambia and Ethiopia have defaulted and are chasing what has emerged to be extremely elusive and arduous restructuring engagements with their creditors, the prospect of reviewing the DSA for low-income countries is indeed a welcome development.
See also: G20 to review multilateral development banks reform roadmap in October, says Brazil
Global economic growth set to slow to 2.6% in 2024, just above recession threshold (UNCTAD)
A UN Trade and Development report released ahead of the 2024 Spring Meetings of the International Monetary Fund and the World Bank warns that the prevailing focus on inflation overshadows urgent issues like trade disruptions, climate change and rising inequalities. It calls for structural reforms and coordinated global efforts, proposing a comprehensive strategy that includes both supply-side policies to boost investment and demand-side measures to improve employment and income.
The report highlights an uneven post-pandemic recovery. Africa is projected to grow at 3.0% in 2024, up slightly from 2.9% in 2023. Armed conflicts and climate impacts pose significant challenges in several countries. The continent’s largest economies – Nigeria, Egypt and South Africa – are underperforming, affecting overall prospects.
Net finance flows to developing countries turned negative in 2023 (ONE Campaign)
New analysis by The ONE Campaign shows that net financial transfers to developing countries have fallen from their peak of US$225 billion in 2014 to US$51 billion in 2022 (the most recent year for which data is available). More than one in five emerging markets and developing countries paid more to service their debt in 2022 than they received in external financing. This could rise to more than one in three by 2025.
As G20 Finance Ministers meet for the Spring Meetings of the IMF and World Bank, ONE is calling for three things: 1. Multilateral development bank reform: Reforms could unlock up to US$1 trillion in low cost lending by: 2. Increased investments in low-income countries: By tripling the size of the World Bank’s low-income country fund (IDA), and increasing donor contributions by 25% to US$30 billion. 3. Expedited debt relief: Reforming the G20’s Common Framework, which has proved too costly and too slow for countries in debt distress, would enable additional countries to seek relief.
The world’s governments are falling far short of the pledges they made in 2015 to eradicate extreme poverty and create a world with “zero hunger” by 2030 – the first and second Sustainable Development Goals. On current trends, the poverty goal will be missed by a wide margin.
Behind the raw numbers of the SDG data, millions of people are living with avoidable poverty and preventable hunger. In response, the Brazilian Presidency of the G20 has proposed a Global Hunger and Poverty Alliance to galvanise change.
Fresh thinking needed to move agriculture talks forward, says Chair (WTO)
The Chair of the WTO's agriculture negotiations, Ambassador Alparslan Acarsoy of Türkiye, told trade officials that “fresh thinking” was needed to break the persistent deadlock in the talks. At the first meeting of the agriculture negotiating body since the 13th Ministerial Conference (MC13), he also urged WTO members to acknowledge the work undertaken so far.
Quick links
How Technology is Weaving African Markets Into the Global Fabric (Markets Media)
Why AU, AfCFTA failed to deliver local content for energy security (Businessday NG)
Chinese navy steps up African port calls in push to cement diplomatic ties (South China Morning Post)
An Alternative Approach to the Unsustainable UN SDGs (Earth.Org)
IATA and Partners Release Aviation Net Zero Roadmaps Comparative Review (IATA)
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South Africa to Keep Anti-Dumping Duties on Chicken Imports From US (Bloomberg)
South Africa’s trade minister approved a recommendation to maintain anti-dumping duties on frozen bone-in chicken portions originating in or imported from the US.
Following an investigation that started in December 2022, the International Trade Administration Commission of South Africa, known as ITAC, concluded that the expiry of duties on these poultry portions would likely lead to the continuation or recurrence of dumping, and material injury to the chicken industry in the Southern African Customs Union, according to a Government Gazette Notice.
W Cape State vets at the centre of efforts to increase agricultural exports (SAnews)
Western Cape State veterinarians have been lauded for the province’s efforts to increase agricultural exports. According to the Western Cape MEC for Agriculture, Dr Ivan Meyer, the province is responsible for 55% of South Africa’s primary agricultural exports, with nearly 50% being livestock or livestock products.
Meyer said the Western Cape Department of Agriculture’s Veterinary Services recently launched its innovative online electronic Export Certificate Office System (ECOS). “ECOS provides the customer with a 24-hour export facilitation service, reducing the export certificate application process from days to minutes. The platform streamlines the export process and ensures compliance with international standards. Exports contribute to foreign exchange earnings and a 5% increase in exports will lead to approximately 22 000 new jobs in the agriculture sector in the Western Cape,” he explained.
Consultations ongoing for continental free trade area (The Namibian)
The Ministry of Industrialisation and Trade is hosting Special Economic Zone (SEZ) consultations countrywide as the country prepares itself for the African Continental Free Trade Area (AfCFTA) agreement. During the consultation in the Erongo region on Monday, trade minister Lucia Iipumbi said the establishment of the zones would boost industrialisation, enhance exports and push economic growth.
“Special Economic Zones have over the years proven to be a catalyst for economic transformation around the globe. This is done through creating specific areas with favourable business conditions and incentives advanced by the government,” she said.
“Past experiences of investments in Namibia points to unfavourable free trade agreements, particularly for unskilled workers, women, the informal sector and sustainability,” the report states. The ministry is doing the consultations on the draft SEZ bill, the informal economy, start-ups and entrepreneurship development policy, Namibia investment promotion and facilitation regulations and a national cooling strategy.
EAC seeks to standardise fuel transportation tankers (Monitor)
Representatives from seven East Africa Community (EAC) member states are in Kampala to discuss measures that will lead to standardisation of road tankers, among which include vehicles that transport petroleum products, liquefied petroleum gas, raw materials for soap, and cooking oil production, among others.
The week-long discussion, which started on Monday led by the EAC Secretariat, seeks to harmonise procedures for calibration and verification of road tankers to ensure consistent measurements within the region. This, the EAC Secretariat noted is a key measure that will facilitate intra-EAC trade and movement of liquefied products across the region.
Ms Stella Apolot, the EAC Secretariat principal standards officer, said yesterday that the harmonisation will largely factor in different legislations across the region to come out with measures that will be easy to implement among member countries. “We all know the importance of road tankers and we need to ensure that whatever capacity is brought from partner state to another is the same.
Kenyan trucks with tonnes of potatoes stuck at border after Uganda raises levy (The East African)
Close to 30 trucks from Kenya loaded with tonnes of Irish potatoes are stuck at the Busia border after the Uganda Revenue Authority (URA) increased the withholding tax by up to 10 times. Another 20 trucks were reportedly impounded by the tax agency in Jinja, about 120km from the Busia border, on April 12 when the new withholding tax policy was implemented.
According to importers of Irish potatoes from Kenya, they have been paying a withholding tax of Ush120,000 (about $32) for each truck. Now, URA, they say, requires them to pay Ush1,200,000 ($315) for each truck.
Ghanaian stakeholders engaged on AfCFTA Youth and Women Protocol (GhanaWeb)
In an unprecedented mobilization of business leaders and young entrepreneurs across Ghana, the Ghana Chamber of Young Entrepreneurs (GCYE), with support from the German Corporation for International Cooperation GmbH (GIZ) under its AfCFTA support programme, spearheaded a series of stakeholder dialogues aimed at integrating and maximizing the benefits of the African Continental Free Trade Area (AfCFTA) protocol for women and youth.
These crucial dialogues were meticulously planned and executed by Bizgrotec, a leading consultancy firm known for its innovative approaches in business growth and technology.
This strategic move was driven by a dual objective: firstly, to gather insights, inputs, and recommendations from women and youth-led businesses on the nuances of the AfCFTA Women and Youth protocol; and secondly, to collaboratively develop strategies that would bolster the participation of young and female entrepreneurs in the burgeoning opportunities presented by the AfCFTA.
Government opens up to private sector to solve logistical challenges (Ghana News Agency)
Dr Stephen Amoah, a Deputy Finance Minister, has articulated the government’s readiness to partner with value chain stakeholders to solve logistical challenges in the country to boost intra-African trade. Such collaboration, Dr Amoah said would be critical in making Small and Medium-sized Enterprises (SMEs) thrive in the country, while boosting their participation under the African Continental Free Trade Area (AfCFTA).
He was speaking with the media after a forum on “Making logistics work for Ghanaian SMEs to trade under the African Continental Free Trade Area,” in Accra on Tuesday, April 16.
Science, Technology and Innovation Policy Review: Seychelles (UNCTAD)
The review of Seychelles’ National Innovation System (NIS) and the implementation of its 2016-2025 national Science, Technology, and Innovation Policy and Strategy (STIPS) suggests a range of policy actions and institutional reforms. These recommendations are essential for invigorating the NIS, thereby enabling Seychelles to harness STI and entrepreneurship effectively to achieve the goals set in Vision 2033 and the Sustainable Development Goals (SDGs).
Many of the provisions of the STIPS remain unimplemented, primarily due to the weakened institutional capacity characterized by a lack of personnel and dedicated funding. Of these, the failure to establish the proposed National Research Fund, as envisioned in the Policy and Strategy, has hindered the country’s ability to mobilize domestic and international resources for STI. The STIPS, while focused on innovation and entrepreneurship, lack adequate provisions for science-informed policy-making and governance of emerging technologies like AI and Fourth Industrial Revolution (4IR) technologies. This indicates a need for the policy to be updated or thoroughly revised.
Petrol Import Costs Fully Recovered, NNPCL Insists (Leadership News)
The Nigerian National Petroleum Company Limited (NNPCL) has said it recovered full costs from the products it imports into the country. The company also dismissed any insinuation with regard to return to petrol subsidy. Chief corporate communications officer, NNPC Ltd, Olufemi Soneye, told our Correspondent that since the ousting of petrol subsidy by President Bola Ahmed Tinubu, the subsidy regime has ceased to exist.
“It is important to emphasise that the subsidy is no longer in place. Contrary to allegations, petrol subsidy has not been reinstated.” Soneye affirmed during the conversation. This is coming after the chief executive officer of Rainoil Limited, Gabriel Ogbechie, reportedly said the federal government has resumed the payment of the controversial fuel subsidy following the devaluation of the Naira in the foreign exchange market.
Experts want Nigeria to address trade imbalance with partners (Businessday NG)
The Federal Government has been urged to improve on the use of technology in trade transactions with partner countries to avoid distortions in the event of pandemic that could orchestrate the lockdown of the economy in the future. Bamidele Ayemibo, the lead consultant at 3T Impex Consulting Limited, gave the charge at the unveiling of the annual trade finance survey in Nigeria, 2024 held in Lagos recently.
According to Ayemibo, the COVID-19 pandemic caused a major setback to export trading in particular among developing countries, with Nigeria suffering huge losses. Ayemibo also emphasised the need for proper understanding and monitoring of trade finance and international trade among those in the banking sector in Nigeria. He called on the government and banks to have a framework to foster partnership in industry participation and audit to know if the banks are doing the needful with their staff.
Kenya keen on trade deal with US before elections, AGOA lapse (The Star)
Agriculture, environment and workers’ rights took centre stage in the Kenya-US trade talks , with the former seen to push for a deal before November. This comes amid concerns that this year’s US Presidential elections could further derail the process, with a possibility of pushing talks into 2025 when the African Growth and Opportunity Act (Agoa) expires.
During the 11-day physical meeting (negotiating round) in Washington between April 2-4, the two sides also discussed textual issues on anticorruption; and Micro, Small, and Medium-sized Enterprises, and continued conceptual discussions on inclusivity. The US delegation was led by Assistant United States Trade Representative (USTR) Constance Hamilton while the Kenyan delegation was led by Principal Secretary for Trade Alfred K’Ombudo.
The meeting follows an in-person negotiating round under the US-Kenya Strategic Trade and Investment Partnership (STIP) held in Nairobi between January 29-31, this year.
Related: African coalition applauds AGOA 16-year renewal bill to boost trade prospects (Just Style)
African countries incurred $69B in debt service payments in 2023: Al-Mashat (EgyptToday)
Egypt’s Minister of International Cooperation, Rania Al-Mashat, called upon the international community to scale up debt swap programs for climate action. The minister emphasized the importance of reducing financial burdens while advancing sustainable development goals in a high-level event with the Economic and Social Commission for Western Asia (ESCWA), on the sidelines of the International Monetary Fund (IMF) Spring Meetings.
Al-Mashat drew attention to the pressing needs of developing countries, particularly in Africa, where there is a substantial shortfall in climate financing. The continent requires an estimated $200 to $400 billion annually until 2030 to address climate-related challenges. Meanwhile, African countries paid approximately $69 billion in debt service payments in 2023 alone, servicing their outstanding sovereign debts.
The event, titled “Debt Swap for Climate Action,” focused on exploring the debt swap mechanism as a means to support climate-related initiatives and facilitate the implementation of the Sustainable Development Goals (SDGs). Al-Mashat highlighted the potential of debt swaps to enhance countries’ fiscal capacity, enabling them to expand investments in climate action.
Global Affairs Canada(link is external) has provided $7.3 million in funding to the Africa Fertilizer Financing Mechanism (AFFM) to enhance sustainable agricultural productivity and smallholder farmer livelihoods, particularly women and youth across Africa. The financing will aid the Mechanism in replicating its credit guarantee programs, enabling fertilizer importers and aggregators to access the product on credit. It will also boost efforts to improve soil health and provide technical assistance to farmers.
New Partnership Aims to Connect 300 million to electricity by 2030 (World Bank)
The World Bank Group and African Development Bank Group are partnering on an ambitious effort to provide at least 300 million people in Africa with electricity access by 2030.The World Bank Group will work to connect 250 million people to electricity through distributed renewable energy systems or the distribution grid while the African Development Bank Group will support an additional 50 million people.
“Electricity access is the bedrock of all development. It is a critical ingredient for economic growth and essential for job creation at scale. Our aspiration will only be realized with partnership and ambition. We will need policy action from governments, financing from multilateral development banks, and private sector investment to see this through,” said Ajay Banga, World Bank Group President.
Red Sea Crisis and implications for trade facilitation in Africa (UNCTAD)
The end of 2023 and the first quarter of 2024 are marked by major disruptions to global maritime trade flows as ships entering the Gulf of Aden and sailing through the Red Sea and the Suez Canal continue to face attacks by Yemen-based Houthis. This new wave of disruption follows the unprecedented global logistics crunch caused by the COVID-19 pandemic and its fallout in 2020-2022 and the war in Ukraine since 2022. It also compounds the challenges caused by the reduced ship transits in the Panama Canals resulting from the impact of drought on water levels.
The disruption in the Red Sea and increased shipping traffic around Africa underscore the need for African countries and ports to scale up ongoing efforts aimed at implementing trade facilitation measures, taking up digitalization and mainstreaming green processes to reduce port congestion and expedite the clearance of goods.
The 2020-2022 upheaval in global logistics and the war in Ukraine have exposed the vulnerability of extended supply chains to disruptions and exposed instances of ill preparedness. The Red Sea crisis and the Panama Canal situation are further emphasizing the need to strengthen transport and trade in the face of disruption and consider how to respond, cope, recover and adapt to the new operating conditions.
In this context, a key question arises: Can African countries leverage the current disruption and explore how, by improving their trade facilitation environment, they can take advantage of the business opportunities that may arise from the additional traffic passing through their ports? Put differently, could the additional port calls that are currently mostly motivated by bunkering activities stimulate maritime trade? Could the additional port activities motivate additional imports and exports?
WTO members hold focused discussions on harnessing digitalization to facilitate trade (WTO)
At a meeting of the Committee on Trade Facilitation on 16-17 April, members kicked off discussions on utilizing digital tools to optimize the movement of goods across borders in line with the committee’s decision to focus on this topic in 2024. Members heard presentations on national experiences with using digitalization to facilitate trade. The committee intends to explore this topic in further meetings and summarize discussions at the end of the year.
Three sub-topics were addressed at the meeting, namely: using data and technology to simplify trade; promoting the implementation of the Trade Facilitation Agreement through the digital revolution and smart technologies; and digitalization of border procedures. Ten delegations shared their experiences: China, Costa Rica, Guatemala, Japan, Pakistan, Peru, the Dominican Republic, the United Kingdom, the United States, and Togo.
WTO, FIFA take steps to advance cotton initiative unveiled at MC13 (WTO)
At its first meeting since the launch of the “Partenariat pour le Coton” at the 13th Ministerial Conference (MC13) in February, the Steering Committee of the WTO-FIFA Cotton Initiative on 18 April pledged to intensify work to deliver concrete results for African cotton-producing countries, notably the Cotton Four (Benin, Burkina Faso, Chad, and Mali) plus Côte d’Ivoire. They welcomed two new partners — the International Atomic Energy Agency (IAEA) and the International Labour Organization (ILO) — as members of the Steering Committee.
The “Partenariat pour le Coton” was unveiled by WTO Director-General Ngozi Okonjo-Iweala and FIFA President Gianni Infantino on 25 February. The initiative aims to strengthen the WTO-FIFA cotton partnership and support African countries’ participation in cotton value chains. The launch marked a milestone in the partnership following the signing of the WTO-FIFA Memorandum of Understanding (MoU) in
Push to tax polluters, mega-rich to pay for climate action takes off (Devex)
An international tax task force and G20 nations are discussing proposals for global taxes to raise funding to fight climate change and inequality in low- and middle-income countries.
Meeting on the sidelines of the International Monetary Fund-World Bank Spring Meetings on Wednesday, a small group of countries discussed how to design a set of levies on fossil fuel producers, aviation, maritime shipping, and financial transitions to unlock much-needed climate and development cash.
Launched at the 28th United Nations Climate Change Conference in Dubai last year and co-chaired by Barbados, France, and Kenya, the international tax task force has committed to assessing the impact of different levies and their political and technical feasibility.
The group is due to present its initial findings at COP 29 in Azerbaijan in November and hopes to rally a coalition of the willing around a set of feasible options for climate taxes at the COP 30 talks in Brazil in 2025.
Embrace innovation ‘to make sustainable transport a reality for all’ (UN News)
Opening its High-level Meeting on Sustainable Transport, Assembly President Dennis Francis urged countries to seize the opportunity to shape a green, inclusive and prosperous future for today and generations to come. ”From public transport to maritime transport, we must embrace innovation-driven approaches – to make sustainable transport a reality for all,” he said.
He stressed that with over one billion people, roughly one-eighth of the planet, lacking access to all-weather roads, “our foremost priority must be to ensure equal access to sustainable transport, particularly for countries in special situations and vulnerable communities.” He drew attention to Landlocked Developing Countries, Small Island Developing States, and Least Developed Countries and the obstacles to sustainability they face, such as inadequate infrastructure, lack of maintenance capabilities and impaired resilience to climate change.
See also: From Africa to Maryland, Transport Knowledge Knows No Borders (World Bank)
The Managing Director’s Global Policy Agenda, Spring Meetings 2024: Rebuild, Revive, Renew (IMF)
The global economy has shown remarkable resilience, and appears headed for a soft landing. But buffers have been eroded, growth prospects are lackluster, and vulnerable countries are at risk of falling further behind. While inflation has fallen, it remains above target in many countries. Against this background, the key policy priorities are to: (i) rebuild buffers; (ii) revive medium-term growth; and (iii) renew the IMF’s commitment to ensure that our policies, lending toolkit, and governance are fit for purpose. Central banks need to finish the job on inflation, carefully managing its descent to target. With a soft landing in sight, policymakers’ focus needs to shift to fiscal consolidation to safeguard public finances.
Reviving growth prospects will require accelerating structural reforms and joint efforts by countries to tackle transformational challenges. Firmly grounded in its mandate, working with its members, and in partnership with other international organizations, the IMF will continue to serve its members
Related: IMF, World Bank cite significant progress in debt restructuring cases (Reuters)
Quick links
China Boosts Agricultural Trade with South Africa, Deepening Economic Ties (TDS News)
Seizing the opportunities of African trade requires robust risk management (African Business)
ECOWAS Needs to Have a Face (The Republic)
Nearly $450 billion was spent on the SDGs — where did it go? (Devex)
Reducing supply risk of critical materials for clean energy via foreign direct investment (Nature)
Positioning in global value chains: A new dataset available for global value chain analyses (CEPR)
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Mining and manufacturing production rebounds (Freight News)
South Africa’s mining production has rebounded following a challenging start to the year. Statistics SA’s latest data released this week shows that mining activity improved by much more than expected in February, according to the Bureau for Economic Research’s (BER) Weekly Review. According to the data, mining production rose by a solid 9.9% year-on-year (y-o-y) from an upwardly revised 2.8% y-o-y.
Kenya diaspora remittances up 19pc in first quarter as inflationary pressure eases (The East African)
Kenyans living and working abroad sent home a total of $1.2 billion (Ksh158 billion) during the first three months of this year, marking an 18.8 percent jump from the inflows recorded during a similar period of 2023, on the back of easing inflationary pressure in developed economies. Data from the Central Bank of Kenya (CBK) shows that Kenyans abroad remitted $412.4 million (Ksh53.8 billion) back home in January—the highest in a month so far this year, followed by $407.8 million (Ksh53.2 billion) in March and $385.9 million (KshSh50.3 billion) for February.
Namibia sees final investment decision on oil find by end 2024 (Engineering News)
Namibia will invest a big chunk of any revenue it gets from a potentially massive oil discovery into a sovereign wealth fund, and expects to learn if the find is commercially viable later this year. “We understand that the quantities are large but we still have to test the commercial viability of this oil,” Finance Minister Ipumbu Shiimi told Bloomberg in an interview Tuesday in Washington. “We e
PetroSA targets Mozambique gas in new sales deal (Engineering News)
PetroSA expects the first flows of gas into the country from a deal with Mozambique's national energy company ENH later this year, officials said, amid efforts to shore up supplies ahead of a potentially crippling shortage. Handed a gas trading licence by regulators in March, state-owned oil and gas company PetroSA has moved quickly to secure a deal for an initial 2 petajoules of gas a year (PJ/a
Algeria signs Hosting Agreement for Intra-African Trade Fair 2025 (Afreximbank)
The Host Agreement Signing Ceremony for the Intra-African Trade Fair 2025 (IATF2025) took place in Algiers on 15 April 2024. The Ceremony, which was hosted by the African Export-Import Bank (Afreximbank), in collaboration with the African Union and the AfCFTA Secretariat, and the Government of the People’s Democratic Republic of Algeria, paves the way for the fourth editi
Commission reports on thirteenth negotiation round with five Eastern and Southern African countries to deepen existing EPA (European Commission)
As part of its transparency commitments, the Commission has published the report summarising progress made during the latest negotiation round to deepen the existing Economic Partnership Agreement (EPA) with five Eastern and Southern African partners (ESA5): Comoros, Madagascar, Mauritius, Seychelles and Zimbabwe.
Agricultural value chain offers many opportunities for women (Modern Ghana)
Prof Stanley Dary, Director of the Directorate of Community Outreach and Business Incubation at the Simon Diedong Dombo University of Business and Integrated Development Studies (SDD UBIDS), has said there are many opportunities that exist within the agricultural value chain that women can leverage to improve their socio-economic statuses. Prof Dary said this during the Kosmos Innovation Center (
While Africa continues to exhibit remarkable resilience against a series of shocks that it has not created, it is off track to meet the Sustainable Development Goals (SDGs).
Africa is the second fastest growing region in the world, but poverty and hunger have been rising over the past five years.
The vision of the AfCFTA is about progressively replacing the many small and fragmented national markets with a single continent-wide marketplace.
Whichever way we want to look at it, it makes more economic sense to have seamless trading in one big market than to deal with over 800 bilateral investment treaties.
When goods and services flow freely across borders, entrepreneurs take investment decisions with the knowledge that their products and services will be placed inside a single market of 1.4 billion people whose collective spending power is close to US$3 trillion.
To use a term coined by my friend and colleague, Ambassador Albert Muchanga, the African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals:
I quote, “with the AfCFTA in place, Africa is every entrepreneur’s domestic market”. End quote.
Back in February 2013 in Tunis, in response to a journalist who had asked her how the African Development Bank Group differed from other institutions, Ellen Johnson-Sirleaf, then President of Liberia, replied, "simply the confidence it inspires. I can say without any hesitation that the Bank has played a decisive role in my country in the aftermath of the conflict. It gave us the confidence to believe that we could move on.”
Prudence, respect for principles, and the pursuit of tangible results are the major new guidelines of Africa's leading development finance institution, which has supported more than 5000 projects in its 60 years. Today, integration projects remain its trademark. One such project dates to 2012, when the Bank facilitated talks between Zambia, Botswana and Zimbabwe, leading to the construction of the Kazungula Bridge over the Zambezi River. The Bank also opened the way to building the Senegambia Bridge, which opened in 2019. Now, the Bank is financing the ongoing construction of the Rosso Bridge over the River Senegal linking Senegal to Mauritania, as well as the Trans-Saharan Highway currently being completed between Algeria and Nigeria.
Egypt to host 21st COMESA Summit (Atab News PK)
Saudi Arabia is set to witness the development of new luxury resorts as the Tourism Development Fund signed a memorandum of understanding with Karisma Hotels and Resorts International, the Saudi Press Agency reported. It offers financial and non-financial support to international and local investors.
ECOWAS is under pressure to reform (DW)
ECOWAS was once considered Africa's most institutionally developed regional organization, but that has changed. Following the recent military coups in various countries in the West African sub-region, it became clear that the organization lacks authority, legitimacy, and effective sanction and intervention instruments. " ECOWAS will only have a future if its member countries remember the spirit o
Bluechip Technologies to tap into Uganda’s vibrant digital economy (New Vision)
“We believe that our entry into the Ugandan market will accelerate technological advancement in the country due to our expertise in digital transformation, scalable infrastructure solutions, and cybersecurity. The Minister of ICT and National Guidance Chris Baryomunsi has lauded BlueChip Technologies' entry into the country’s digital landscape.
African Countries Urged to Harness Opportunities in Battery, EV Sector (ENA)
The United Nations Economic Commission for Africa (UNECA) has called on African countries to harness the opportunities presented in recent developments in the global battery and electric vehicle (EV) industry. The UNECA made the call as it held a technical review meeting on the implementation of a cross-border special economic zone for the battery and EV industr
Telecommunications and Technology: Driving a sustainable digital revolution for Africa’s tomorrow (MyJoyOnline)
Sub-Saharan Africa stands at the brink of a digital revolution, where telecommunications and technology are poised to be the driving forces behind sustainable socio-economic development. With a youthful population and vast economic opportunities, the region is embracing digital transformation as a pathway to inclusive growth and prosperity. We believe there will be a few key drivers of this digit
Nigeria’s BRICS Dilemma: Evaluating the Risks of Russian Alignment (Africa24.it)
In the text provided, we are presented with a strong opinion arguing that Nigeria should refrain from engaging with the BRICS alliance, particularly due to concerns around the reliability of President Putin of Russia. The author waleolaniyan posits that Nigeria’s involvement with BRICS could have detrimental effects on th
Nigeria's plans to join BRICS in line with its philosophy: Official (Al Mayadeen)
Akabueze expressed that when several countries were invited to join BRICS but Nigeria was not, "it raised a lot of eyebrows." Director General of Nigeria's Budget Office Ben Akabueze told Sputnik that its intent to join BRICS conforms with its interest in a more equitable global financial and development system. "The way I see it, BRICS is all part of a strategy to seek a more equitable global fi
China-Africa Partnership: Enhancing Socio-Economic Development and Connectivity (Pakistan Observer)
The Chinese BRI has become one of the biggest stimulators of socio-economic development in the African continent. It has also further enhanced Africa-China relations in terms of diverse sectors of economy, investment, manufacturing, trans-regional connectivity, immense social development and, notably, energy & food security. Africa has been benefiting from the BRI to boost infrastructure developm
Global events influence US AGOA standing (Fruitnet)
Moves in US Congress to review South Africa’s participation in AGOA, the US Growth and Opportunities Act, have reportedly been dropped. South African citrus growers who ship their fruit to the US are breathing a sigh of relief after reports that senators have introduced a bill to extend AGOA, which is meant to boost trade between Africa and the US until 2041.
South Africa, AGOA, and nonalignment (Brookings)
In 1998, flanked by U.S. President Bill Clinton and with Table Mountain looming in the background, South African President Nelson Mandela (after warmly welcoming the American president) used the opportunity of his first joint press conference with a U.S. president on South African soil to defend the country’s right to maintain positive relations with Libya, Cuba, and Iran. Thirty minutes later, w
Young seeking to maintain US-Africa trade preference program (New York Times)
U.S. Sen. Todd Young, R-Ind., is leading a bipartisan effort to strengthen a long-running American trade incentive for countries located in sub-Saharan Africa. The two-term Hoosier lawmaker recently filed the African Growth and Opportunity Act (AGOA) Renewal and Improvement Act to continue a trade preference program that facilitates deeper investment and stronger commercial ties between the Unite
The WAEMU has seen strong growth and rising living standards over the past decade. Economic growth averaged 5.4 percent in 2013-2019 and 5.8 percent in 2021-2023. Policy efforts from regional and national authorities have cushioned the impact of several external an
Global Gateway: EU remains the leading global provider of Aid for Trade (International Partnerships)
The European Union remains the world’s biggest contributor of Aid for Trade, committing over €18 billion in 2021, finds the latest EU Aid for Trade Progress Report published today. This amount represents 47% of all Aid for Trade originating from bilateral and multilateral sources, sustaining the growth trajectory from a 33% contribution in 2018. European Commissioner for International Partnership
In De-Risking, the Transatlantic Partners Enjoy An Edge. But Can They Capitalize? (CEPA)
Because China’s rise dominates the headlines, it is perhaps natural to conclude that Beijing has become the US and EU’s top trade partner. That’s wrong. US-EU goods trade in 2023 reached $946 billion, 39% higher than the $575 billion US-China goods trade and 15% higher than the $805 billion EU-China goods trade What’s more, trade between countries does not just consist of trade in goods. It also
Transition to Renewables Calls for New Approach to Energy Security (IRENA)
Evolving concept of energy security must address energy demand, system flexibility, technology access and infrastructure development, says IRENA Abu Dhabi, United Arab Emirates, 17 April 2024 – The transition away from fossil fuels to renewables requires a new interpretation of the concept of energy security, according to a new report by the International Renewable Energy Agency (IRENA) published
Multilateral development banks must supercharge nature-positive finance (WWF)
In advance of this year’s World Bank and IMF Spring Meetings, WWF’s Global Finance Practice Lead, Aaron Vermeulen, calls on governments and central banks gathering in Washington D.C. to shape a resilient, nature-positive global economy that delivers lasting prosperity. Finance is a powerful lever for change, and the age of nature-positive finance is dawning. As climate an
Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (IMF)
April 16, 2024 1. The G‑24 recognizes the profound human suffering from different crises worldwide. Such crises, whether stemming from conflict, natural disasters, violence, or other calamities, have exacted a heavy toll on individuals and communities. We call for strong commitment and emphasize the urgent need for a strong and united international effort to restore peace, stability, and rebuild
10 Priority Actions That Can Triple Trade in the Middle Corridor by 2030 (World Bank)
The Middle Corridor—a network of road, rail, and sea routes linking Chinese and European markets via Central Asia and the Caucasus—can become an engine of growth. Improvements to strengthen the corridor will help economies to flourish by boosting trade, creating jobs, and spurring entrepreneurship. A combination of investments and efficiency measures can reduce travel times along the corridor by
Committee adopts recommendations to support vulnerable members in tackling food insecurity (WTO)
At a special meeting on 17 April, the WTO Committee on Agriculture adopted a report containing recommendations on how to help least developed countries (LDCs) and net food-importing developing countries (NFIDCs) respond to acute food insecurity. The Chair of the Committee, Mr Kjetil Tysdal from Norway, congratulated members for reaching consensus on addressing the food security concerns of the most vulnerable WTO members.
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Kenyan firms gear up for Africa's largest trade fair in Algeria (The Standard)
Closing Africa's trade finance gap (Business Daily)
Trade Deception Returns in Pan-Africanist Guise (Inter Press Service)
UN forum calls for more funding, steps towards slavery reparations (The East African)
Containerisation has a Covid hangover (Freight News)
Garden centres in UK stockpile plants before new Brexit checks (The Guardian)
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South Africa puts biggest trade partner in its crosshairs over R20 billion and 100,000 jobs (BusinessTech)
South Africa said it has taken a preliminary step toward filing a complaint with the World Trade Organization (WTO) against the European Union over its treatment of citrus imports from the country.
Two years ago, the EU imposed requirements for additional refrigeration of incoming fruit from South Africa, which lags behind only Spain as an exporter of the produce, to combat incidences of Citrus Black Spot, a fungal disease that leaves dark spots on fruit.
Last year, according to the Agricultural Business Chamber of South Africa, South Africa shipped $644 million of citrus such as oranges, lemons, grapefruit, and mandarins to the EU. The EU’s moves increased costs and slashed shipments from South Africa, which competes with Spain for the citrus market. “The industry cannot afford the almost R2 billion that is needed to comply with the EU’s trade-restrictive regulations,” Thoko Didiza, South Africa’s agriculture minister, said in the statement.
South Africa’s trade watchdog suffers ransomware attack — warns of data leaks (MyBroadband)
The International Trade Administration Commission of South Africa (ITAC) has warned its employees and trading partners that their data may have been breached following a ransomware attack it suffered on 2 January 2024, according to a News24 report, The publication has seen an ITAC statement from Monday, 15 April 2024, revealing it had been hit by a security breach locking employees out of its system and encrypted files.
Following the attack, the ITAC shut down its systems to update security measures, including its firewall. ITAC chief commissioner Ayabonga Cawe said that despite these measures, private information of ITAC employees, service providers, and importers, among others, had been accessed during the attack.
“We are publishing this notice to alert all stakeholders to the fact that there is a chance this security compromise may affect them,” News24 quoted Cawe as saying.
Industrialisation and Trade Ministry engages stakeholders on economic policies (Namibia Economist)
The Ministry of Industrialisation and Trade held a crucial public consultation among stakeholders to discuss four pivotal policy and legislative frameworks. These frameworks included the draft Special Economic Zone (SEZ) Bill, National Informal Economy, Startups and Entrepreneurship Development Policy (NIESED), Namibia Investment Promotion and Facilitation Regulations, and the National Cooling Strategy.
Addressing the esteemed gathering, Minister, Lucia Iipumbu, expressed gratitude for the participation of stakeholders, acknowledging the invaluable insights they bring to shaping Namibia’s economic future. The discussion aimed to garner input on these frameworks critical to the country’s growth and development.
Commencement of trade under the African Continental Free Trade Area (AfCFTA) Agreement: 1st April 2024 (Ministry of Trade and Industry, Botswana)
The Ministry of Trade and Industry is pleased to announce that trade under preferential terms of the African Continental Free Trade Area Agreement (AfCFTA) can commence from the 1st April, 2024. This follows the publication of the Tariff Concessions and Rules of Origin for imports from participating AfCFTA members in the Government Gazette Extraordinary of 8th March, 2024.
The commencement of trading under this landmark Agreement provides the Private Sector with market access to the larger African market of 1.3 billion and will stimulate industrial development, investment and job creation which are in line with Botswana’s Vision 2036. This will result in wider and increased market access for Botswana’s exports in the African continent. The Private Sector will also access a wide range of inputs or raw materials from the continent at competitive prices. The Agreement also supports growth of Women and Youth owned businesses.
The public is informed that trading will be with countries that have completed their respective national processes for trading under the AfCFTA.
National Single Window project will facilitate regional integration – Tinubu (Daily Nigerian)
President Bola Tinubu has said that the introduction of the National Single Window, NSW, project would facilitate national and regional integration. Mr Tinubu said this during the inauguration of the National Steering Committee of the NSW on Tuesday at the Presidential Villa, Abuja. He said that Nigeria would key into the global revenue enjoyed by other global financial systems benefiting from the single window initiatives of ease of doing business.
The single-window system or single-window concept is a trade facilitation concept which allows an international (cross-border) trader to submit information to a single agency. It reduces having to deal with multiple agencies in multiple locations to obtain the necessary papers, permits, and clearances to complete their import or export processes.
“The national single window is a game changer that will revolutionise the way we conduct trade by simplifying government trade compliance through a digital platform. We unlock the doors to economic prosperity, and all other opportunities. “This initiative will link our ports, government agencies and key stakeholders by creating a seamless and efficient system that will facilitate trade like never before.”
Zimtrade targets Zambia’s Agritech Expo (New Zimbabwe)
Trade promotion agency, ZimTrade has tabled plans to connect local companies to the Zambia Agritech Expo set to kick off later this week. The high-level event in Zambia showcases the latest agricultural technology, products, and services which include precision agriculture technology, irrigation systems, seed and fertilizer innovations, livestock management solutions, and agricultural machinery and equipment among others.
This year’s event is expected to run between the 18th to the 20th of April at the Golden Valley Agricultural Research Trust Research Centre in Chisamba. Agricultural inputs and implements present lucrative export opportunities for local manufacturers with market data showing that the exports of agricultural inputs and implements grew from US$606 billion in 2019 to US$828 billion in 2022.
Ghana fails to secure debt deal with international bondholders (The East African)
Ghana has failed to secure a workable debt deal with two bondholder groups in its push to restructure $13 billion of international bonds, the government said on Monday, in a blow to its efforts to swiftly emerge from default and economic crisis.
Formal talks were on hold for now after the International Monetary Fund (IMF) indicated that the deal would not fit its debt sustainability parameters, the government said in a statement. “We will regroup to continue negotiations until we reach a deal that is consistent with IMF debt sustainability targets,” the office of Finance Minister Mohammed Amin Adam said on X, after the government had released its regulatory statement.
Aviation: Eswatini Hosts Pioneering Workshop on Gender Equality (COMESA)
The aviation sector, known for its high technical demands and significant economic impact, has historically seen lower participation rates of women, especially in technical and leadership roles. As part of a broader initiative to tackle these disparities and foster an inclusive environment that supports the careers of women in this dynamic field, COMESA is leading an initiative to sensitive girls on the range of careers available in aviation.
On 10 – 12 April 2024 the Kingdom of Eswatini, in collaboration with COMESA, hosted a three-day workshop in Sibane, Eswatini aimed at promoting gender equality and expanding career opportunities for women in the Eastern Africa, Southern Africa and Indian Ocean (EA-SA-IO) region’s aviation sector.
The Sub-committee is tasked with spotlighting and providing practical solutions to issues around tax and IFFs and making recommendations for the approval of STC and implementation by the stakeholders. Its focus remains to devise measures to unlock domestic resources for the development of Africa and its people.
Despite its vast economic potential, Africa faces challenges in mobilizing domestic resources to fund development initiatives. Historically, the Continent as the rest of the developing world, hardly participated in making the global tax and financial architectures. This has often disadvantaged Africa, leading to inequitable access to capital, revenue losses, illicit financial flows, Base Erosion and Profit Shifting (BEPS) and hindered economic progress.
Currently, Africa loses around USD 89 billion annually to illicit financial flows (IFFs), equating to 3.7% of its gross domestic product (GDP), while tax incentives contribute to a further $220 billion loss. The loss through IFFs increased from what was reported through the findings of the High-Level Panel on Illicit Financial Flows in 2015, that shows Africa was losing more than US$50 billion annually in IFFs. Addressing these issues requires concerted efforts to promote fiscal transparency, enhance efficiency, and ensure accountability in tax administration.
SADC holds a Retreat for Member States Focal Points for Trade in Services (SADC)
The Directorate of Industrial Development and Trade (IDT) at the Southern African Development Community (SADC) Secretariat convened a Retreat for Member States’ Focal Points for Trade in Services, held from 25-27 March 2024 in Centurion, South Africa. The main objective of the Retreat was to provide a strategic and less formal forum, outside negotiating meetings, for delegates to visualise the future and how to position the region’s services sector to take advantage of the African Continental Free Trade Area (AfCFTA)market access opportunities.
The meeting was to develop a 15-year Regional Strategy on Trade in Services and a 5-year Action Plan. During the Retreat, the delegates forged a shared understanding of the developments, strategies/approaches, opportunities, and challenges in negotiating and implementing regional trade in services liberalisation commitments. As crucial input into the Strategy and Action Plan, the delegates considered the findings and recommendations of the study on “How to Improve SADC Services Sector Competitiveness to Take Advantage of AfCFTA Market Access Opportunities”.
The Economic Commission for Africa (ECA), Sub-Regional Office for Southern Africa (SRO-SA) and Afreximbank in collaboration with the Ministry of Commerce, Trade and Industry organised a technical meeting to review the findings and recommendations of the prefeasibility study for implementation of a Transboundary Battery and Electric Vehicle industry Special Economic Zone in the Democratic Republic of Congo (DRC) and Zambia.
The joint Battery and Electric Vehicle (BEV) initiative on the establishment of a value chain in the electric battery and clean energy sector is supported at the highest political level in both countries. In the DRC, the President established the Congolese Battery Council and appointed its leaders by Presidential Decree No 0314/02/2023. In Zambia, the Ministers of Commerce, Trade and Industry (MCTI), Finance and National Planning, Mines and Minerals Development and Technology and Science were specifically tasked by the Republican President, to spearhead the initiative and a technical committee to support the processes on the initiative was inaugurated. Following the signing of the framework agreement in March 2023, Afreximbank and UNECA retained ARISE Integrated Industrial Platforms to prepare a prefeasibility study on the Transboundary Special Economic Zone. ARISE submitted the draft prefeasibility report to the two member States in December 2023 for their review.
Lower economic growth and trade disruptions in 2024 to impact development (UNCTAD)
While the global economic slowdown in 2023 was less severe than originally projected, UN Trade and Development in its latest Trade and Development Report Update warns that further growth deceleration could be expected in 2024.
UN Trade and Development Secretary-General Rebeca Grynspan strongly urges concerted multilateral action and a balanced policy mix, underlining that global policy coordination remains the key to safeguarding the global economy amid shifting trade patterns, soaring debt, and mounting cost of climate change all of which disproportionately affect developing countries.
Rising protectionism, disrupted maritime routes due to geopolitical tensions and climate change threaten global trade, the report says. In 2023, the global economy grew by 2.7%, but international trade in goods decreased by 1%. Although there has been some recovery in 2024, it's unlikely that merchandise trade will be a significant driver of growth this year.
Saudi Arabia bolsters first-ever Global Supply Chain Forum (UNCTAD)
The Kingdom of Saudi Arabia, through its ports authority, has contributed funds to bolster the first-ever Global Supply Chain Forum, organized by UN Trade and Development (UNCTAD) and Barbados. Set for 21 to 24 May in Bridgetown, the forum will unite government officials, business leaders and experts from around the world to tackle global logistics challenges magnified by the COVID-19 pandemic, geopolitical shifts, climate change and rising maritime freight rates.
“The Saudi Ports Authority, MAWANI, reaffirms its dedication to boosting global supply chain resilience and promoting international cooperation,” the port authority said in a statement.
Global supply chains, vital for producing and distributing goods ranging from cars to clothes, foods and medicines, are under unprecedented strain. Attacks on commercial vessels in the Red Sea, severely disrupting Suez Canal shipping, along with turmoil in the Black Sea from the war in Ukraine, and the impact of drought-induced water level reductions in the Panama Canal have given rise to a complex crisis affecting key trade routes.
Global Economy Remains Resilient Despite Uneven Growth, Challenges Ahead (IMF)
Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose. The journey has been eventful, starting with supply-chain disruptions in the aftermath of the pandemic, an energy and food crisis triggered by Russia’s war on Ukraine, a considerable surge in inflation, followed by a globally synchronized monetary policy tightening. Many large emerging market economies are performing strongly, sometimes benefiting from a reconfiguration of global supply chains and rising trade tensions between China and the US. These countries’ footprint on the global economy is increasing.
Global growth bottomed out at the end of 2022, at 2.3 percent, shortly after median headline inflation peaked at 9.4 percent. According to our latest World Economic Outlook projections, growth this year and next will hold steady at 3.2 percent, with median headline inflation declining from 2.8 percent at the end of 2024 to 2.4 percent at the end of 2025. Most indicators continue to point to a soft landing.
The Great Reversal: Prospects, Risks, and Policies in International Development Association (IDA) Countries (World Bank)
The report, The Great Reversal: Prospects, Risks, and Policies in International Development Association Countries, offers the first comprehensive look at the opportunities and risks confronting the 75 countries eligible for grants and zero to low-interest loans from the World Bank’s International Development Association (IDA). These countries are home to a quarter of humanity—1.9 billion people. At a time when populations are aging nearly everywhere else, IDA countries will enjoy a growing share of young workers through 2070—a huge potential “demographic dividend.” These countries are also rich in natural resources, enjoy high potential for solar-energy generation, and boast a large reservoir of mineral deposits that could be crucial for the world’s transition to clean energy.
Yet a historic reversal is underway for them. This is widening the income gap between these two groups of countries. . The extreme-poverty rate is more than eight times the average in the rest of the world: one in four people in IDA countries struggles on less than $2.15 a day. These countries now account for 90% of all people facing hunger or malnutrition. Half of these countries are either in debt distress or at high risk of it. Still, except for the World Bank Group and other multilateral development donors, foreign lenders—private as well as government creditors—have been backing away from them.
Plastics Dialogue discusses work plan for implementing MC13 statement, welcomes expansion (WTO)
At a meeting on 12 April, participating members of the Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (DPP) discussed the 2024 work plan for implementing the Ministerial Statement announced at the 13th Ministerial Conference (MC13), with the aim of achieving more concrete, pragmatic, and effective outcomes by the next ministerial conference. They welcomed Argentina, Mongolia and North Macedonia as new members of the Dialogue, bringing the number of co-sponsors to 79.
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Navigating The Future: Ethiopian Digital Economy Foresight (The Reporter Ethiopia)
Worsening hunger grips West and Central Africa amid persistent conflict and economic turmoil (FAO)
Global Gateway: The EU launches new regional initiatives in Africa to boost youth mobility and skills, including the unique Africa-Europe Youth Academy (International Partnerships)
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Citrus fight: SA moves to take action against EU (News24)
South Africa has taken a preliminary step toward filing a complaint with the World Trade Organisation against the European Union over its treatment of citrus imports from the country, people familiar with the situation have said. Two years ago, the EU imposed requirements for additional refrigeration of incoming fruit from South Africa to combat incidences of Citrus Black Spot, a fungal disease that leaves dark spots on fruit, and false codling moth, a pest found in South African orchards.
China is hungry for avocados, and South Africa is ready to deliver (South China Morning Post)
According to Derek Donkin, chief executive of the South African Subtropical Growers’ Association (Subtrop), the final registration of avocado orchards and packhouses is under way, with hopes that the first shipment will set off next month.”A number of South Africa’s major exporters have already set up the necessary business contacts in China to be able to export as soon as the official requirements are met,” Donkin said.
It comes at a time when the South African avocado industry is expanding – in recent years it has grown by 4,750 hectares (11,737 acres) to a total of more than 18,000 hectares. Donkin said that as the industry grows, it sees China as a huge untapped market.
The deal to export avocados to China was first signed last year when South African Minister of Agriculture, Land Reform and Rural Development Thoko Didiza met Chinese Foreign Minister Wang Yi on the sidelines of the Brics summit – an association of the five major emerging economies of Brazil, Russia, India, China and South Africa.
“Gaining access to China is a vital step in driving an export-led growth for the South African avocados,” Didiza said at the time. China looks to become one of the world’s major consumers of avocados, something which offers an immense opportunity for the South African industry, Didiza said. “This will have a multiplication effect which will have growth in employment, skills and economic development, in particular [in] the rural areas of our country where the majority of avocados are produced,” she said.
Public consultation key part of law development, but often overlooked (Engineering News)
Following last week’s withdrawal of proposed new visa regulations that would have eased the way for skilled workers to come to South Africa, business organisation Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso says comments from the public and business sector are often overlooked by government.
“In the case of the visa regulations, the proposed changes were welcomed by BLSA. However, poorly conceived legislation often works its way into the lawbooks without any apparent notice of the public comments received,” she notes in her latest weekly newsletter.
Government stockpiles US$700 million ivory due to CITES trade ban; MP calls for increased hunting quotas (New Zimbabwe)
THE Government of Zimbabwe is sitting on ivory stocks worth over US$700 million due to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) ban on trade in the resource. Zimbabwe has an ivory stockpile of 166 221.18kg from 26 906 pieces from inside and outside the parks and wildlife estate.
Environment Minister Sithembiso Nyoni told acting Speaker of Parliament recently that the human-wildlife conflict had been made complex as the animal population continued to increase over the years. “We have been responsible for keeping these and eliminating poaching at a very high cost which has allowed wildlife to grow.
Kenya fertiliser scandal newest threat to Ruto’s food agenda (The East African)
A substandard fertiliser scandal involving Kenyan officials and companies contracted by the government to supply subsidised farm input for the current planting season is threatening to wreck President William Ruto’s plan to improve the country’s food security. Tests by Kenya’s standards body found the fertiliser supplied by at least two of the companies, and some of which has been distributed to farmers across the country, was substandard.
The current probe targeting the standards body mirrors the one in 2018 when its then managing director and nine other officials were arrested and charged with attempted murder for allowing imports of substandard fertiliser containing mercury. Fertiliser subsidy programmes in Kenya have a history of being targeted by procurement and regulatory fraud due to the billions of shillings put in by the government.
Uganda taxman, small traders feud over levies halt businesses (The East African)
The dispute between the Uganda Revenue Authority and the traders in Kampala has been forwarded to President Yoweri Museveni after a two-day strike that paralysed Kampala city and other major towns of Uagnda such as Masaka, 120km southwest of the country’s capital.
The traders’ disagreement with the Uganda Revenue Authority is the taxman’s attempt to impose the electronic fiscal receipting and invoicing solution (EFRIS), which recovers the value-added tax and the traders are calling it ‘daunting” in a period of slow business activity.
The traders complain that manufacturing firms sell products at wholesale and retail prices in business centers which creates unfair competition. They also cite high interest rates that have made doing business costly; high import duties on clothing and other related goods and inflationary pressures that have made most household items expensive for the general public to purchase, hence slowing the business environment.
Coastal states see opportunity as the landlocked pay the price (The East African)
The reality, now, is that exports from East Africa, too, are getting stuck in various ports as a number of vessels suspend or delay picking of commodities due to the Houthi attacks.
Along the Northern corridor, that serves Uganda, South Sudan, Rwanda and the DR Congo, coffee and tea from Uganda and Kenya was in March stuck in warehouses as exporters experienced high cost of sea freight due to increasing demand of vessels. This is not a new problem entirely as transportation of goods is often hampered by bad roads, blocked highways from violent clashes or conflicts especially in countries such as the DRC or South Sudan. However, these often affect a particular country, rather than becoming a regional problem, and countries can often run for Plan Bs.
Since last November, the problem went beyond the region as major shipping lines stopped or temporarily halted Red Sea operations affecting the supply chain in different sea port states. As a result, there has been a delay in delivery of cargo and picking up of empty containers in ports including those in Kenya, Tanzania and Djibouti.
The cost of sea freight immediately went up by $500, on average, per container as global trade volumes decreased by 42 percent, according to a situational report by the United Nations Conference on Trade and Development (UNCTAD) report released in March. Shipping firms have raised freight costs further this week due to the ongoing attacks with no hope of ending soon.
Fishers in Madagascar adapt to deadly seas due to climate change (UN News)
The large Indian Ocean island is amongst the poorest in Africa where the majority of people make their living off the land or sea. Like many other countries in the region, it is suffering the effects of climate change. UN News’s Daniel Dickinson travelled to the village of Mokala in Anosy region where he spoke to the president of the local association of fishers, Gaston Imbola and Valencia Assanaly, the National Coordinator of the ILO’s Project Eco-Langouste Sud.
It is becoming more dangerous to fish in these waters because the winds are getting stronger and the weather is less predictable.... We used to be able to fish around 20 days a month, but with stronger more challenging winds it is now between 11 and 15.
Sudan has experienced a relentless escalation of conflict with far-reaching consequences, causing devastating harm to individuals, social structures, infrastructure, and the economy. The United Nations reported that, since the eruption of the war in April 2023, over 8.2 million individuals have been forced to leave their homes, seeking shelter within and beyond the country’s borders.
Currently, Sudan holds the record for the largest population of internally displaced persons (IDPs) and the most significant child displacement crisis globally. Approximately 37% of Sudan’s population, about 17.7 million people, are suffering from serious food insecurity due to conflict and displacement. Trade disruptions caused by insecurity have led to reduced trade flows and increased prices, impacting rural households’ access to food. Additionally, climate-related shocks and economic challenges, including currency devaluation, and inflation, are exacerbating the crisis.
The World Bank is committed to stay engaged in Sudan and to continue to support the wellbeing of the people of Sudan. In an effort to alleviate their hardships and build resilience, the World Bank has worked hand in hand with development partners to approve the Sudan Somoud - Enhancing Community Resilience Project. The project, funded by a $130 million grant from the Sudan Transition and Recovery Support (STARS)* Multi-Donor Trust Fund, will provide funding directly to the United Nations Children’s Fund (UNICEF) and the World Food Programme (WFP), and will be implemented in partnership with international and local non-government organizations (NGOs).
Seychelles Customs enforces its Rules of Origin capacities (WCO)
Under the framework of the EU-WCO Rules of Origin Africa Programme, funded by the European Union, the World Customs Organization (WCO), in partnership with the Regional Training Center (RTC) Kenya and the Seychelles Revenue Commission (SRC), held a national training workshop on rules of origin for Seychelles Customs.
During the workshop, participants worked on key concepts for proper origin determination, related operational and procedural issues, including origin certification and origin irregularities, as well as the establishment of efficient origin management. In addition, participants discussed specific areas of concern, including the low level of knowledge and use of the FTAs and challenges linked to verification of origin including trough administrative cooperation. They also discussed recommendations for better management and implementation of rules of origin on a national and regional level.
NUPRC: Fostering A Resilient, Sustainable Upstream Oil & Gas Industry Through Sound Regulation (The Whistler Newspaper)
Since the commencement of the Petroleum Industry Act in 2021, the Nigerian oil and gas industry has undergone significant transformation. The PIA passed by the National Assembly was signed into law by former President Muhammadu Buhari. It is one of the most audacious attempts to overhaul the petroleum sector in Nigeria.
The Act provides a legal, governance, regulatory and fiscal framework for the Nigerian Petroleum Industry. Despite being a major source of revenue, the oil sector before the passage of the law had lagged behind other sectors in terms of Gross Domestic Product contribution. It is on this basis that the PIA was formulated to help facilitate Nigeria’s economic development by attracting and creating investment opportunities for local and international investors.
The PIA also created specific institutions to drive the operations of Nigeria’s petroleum sector. One of the regulatory institutions created by the PIA is the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Since the commencement of the Act, the NUPRC under the leadership of the Chief Executive, Engr Gbenga Komolafe, has taken up the statutory responsibility of ensuring compliance with petroleum laws, regulations and guidelines in the upstream oil and gas sector. The discharge of these responsibilities involves monitoring operations at drilling sites, producing wells, production platforms and flow stations, crude oil export terminals, and all pipelines carrying crude oil, and natural gas, among others.
The new dynamics in the global energy arena necessitated that Nigeria, a country that has long depended on the exploitation of oil and gas as the mainstay of its economy, re-examine its strategy to secure a blossoming energy future while meeting the global climate goals.
Nigeria, Benin Republic Customs Collaborate On Trade Facilitation (Leadership News)
The Nigeria Customs Service (NCS) and the Customs Administration of Benin Republic, over the weekend, deliberated on strategies aimed at amplifying trade activities between the two countries. In a press statement by the national public relations officer, Abdullahi Maiwada, the collaboration was also to ensure seamless implementation of recommendations previously discussed during their rendezvous in Cotonou. He said the visit was to strengthen the longstanding partnership between the two agencies
“We are cognizant of the established framework for cooperation between our respective customs administrations. This framework was established at a higher level by the authorities of the heads of State, President Patrice Talon of Benin and President Bola Tinubu of Nigeria, both expressing a desire to work together. It is upon this foundation that the Customs of both countries are united in their efforts.”
TAZARA: Boosting Operational Capabilities, Enhancing Regional Integration (Railways Africa)
In a recent interview with Railways Africa Magazine, at the Land-Linked Zambia 2024 event, Bruno Ching’andu, Managing Director of the Tanzania-Zambia Railway Authority (TAZARA), provided significant insights into the ongoing efforts to revitalise the TAZARA railway system, which is jointly owned by the governments of Zambia and Tanzania. He highlighted the strategic enhancements planned for TAZARA, aimed at boosting its operational capabilities and fostering regional integration.
TAZARA’s established strategy of integrating private operators into its network continues to bear fruit, with the signing of an Open Access Agreement with Bravo Group Ltd. This partnership is not a departure from TAZARA’s established path but an affirmation of its commitment to fostering economic growth and opening up business opportunities along the Dar es Salaam Corridor.
The benefits for TAZARA from this agreement are multifaceted. Firstly, the access fees generated will contribute to the rehabilitation and ongoing maintenance of the railway track. Secondly, the initiative will shift cargo movement from road to rail, aligning with the government’s transportation objectives. Bruno emphasises the significance of this shift, noting that even if TAZARA does not directly transport the cargo, the transition from road haulage to rail is a strategic goal that both governments are eager to see realised.
COMESA’s proposed regulations could lead to a dramatic increase in African competition enforcement (DLA Piper)
Proposed changes to the competition and consumer protection regulations for the Common Market for Eastern and Southern Africa (COMESA) – Africa’s largest market for trade and investment – could greatly expand the enforcement powers of COMESA’s Competition Commission (CCC, or the Commission) by the end of 2024
Prompted by challenges that the CCC has faced under the existing 2004 regulations, COMESA published and invited comment on a proposed draft of new competition and consumer protection regulations in January 2024. If enacted, these new regulations would replace the 2004 regulations. The comment period closed on March 14, 2024. Following several intermediate procedural steps, the proposed revisions are expected to go to COMESA’s Council of Ministers for final approval in November or December, 2024.
If approved by the council, the new regulations would dramatically increase the CCC’s enforcement powers. These changes cover several areas of antitrust and competition concern.
Use Somalia EAC entry for region’s economic renewal (Nation)
Academic and politician Ahmet Davutoğlu, a former Prime Minister of Turkey and foreign minister during the 2011 ‘Arab Spring’, emphasised historic reassessments to transform the Arab region into one of stability, freedom, prosperity, cultural revival and co-existence. The ‘Arab Spring’ had varying degrees of success, particularly in Tunisia, but his words are a poignant reminder of the aspirations for positive change.
Months after Somalia’s admission into the East African Community (EAC), his sentiments resonate with my reflections. This was a pivotal moment that will mark its progress towards economic empowerment and regional integration. It offers the Horn of Africa nation a huge opportunity for conducive environments and regulatory frameworks that bolster investor confidence and safeguard property rights. The developmental forces of technology, climate change and global economic integration become more pronounced, presenting unique challenges and opportunities for Somalia, and East Africa.
Prioritising infrastructure development, fostering partnerships with international organisations, creating an enabling regulatory framework, strengthening internal capabilities and promoting a culture of entrepreneurship and innovation are essential for successful integration into the global market.
The African Development Bank Group President Dr Akinwumi Adesina will co-chair the upcoming Summit on Clean Cooking in Africa(link is external) alongside President Samia Suluhu Hassan of Tanzania, Prime Minister Jonas Gahr Støre of Norway and International Energy Agency Executive Director Fatih Birol.
An estimated four in five Africans cook their meals over open fires and traditional stoves, using wood, charcoal, animal dung and other polluting fuels. The practice has devastating impacts on health, gender equality, and the environment, with 600,000 Africans, mainly women and children, dying annually from indoor pollution.
Dr Adesina said: “Access to clean cooking isn’t merely an energy issue. It is a fundamental human right, and a promise for a healthier, and more sustainable future. The African Development Bank is committed to tackling this challenge head-on, and I am therefore pleased to co-chair the Summit on Clean Cooking in Africa alongside distinguished global leaders.”
The Executive Secretary of the Southern African Development Community (SADC), His Excellency Mr. Elias M. Magosi will lead the SADC Secretariat delegation to participate at the Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington, D.C in the United States of America scheduled for 15 -20 April 2024.
The participation of the SADC Executive Secretary in this global platform that discusses emerging development issues across the world, signifies SADC’s commitment to deepening development cooperation and engagement on the international stage.
Prior to all the engagements, the Executive Secretary will meet SADC Ambassadors based in Washington DC to exchange ideas on accelerating regional development by leveraging on the Ambassadors knowledge, expertise and strategic networks in Washington DC which is a strategic hub for global economic, political, and diplomatic relations.
The SADC Executive Secretary’s visit to Washington DC comes at a time when the SADC region is mobilising support and resources for the implementation of prioritised high impact and transformative regional projects with an estimated cost of US$ 625 billion, covering the priority areas of the RISDP 2020-2030 namely, Peace, Security, and Good Governance; Industrial Development and Market Integration; Infrastructure Development in Support of Regional Integration; Social and Human Capital Development; and Cross-cutting issues of Gender, Youth, Environment and Climate Change, and Disaster Risk Management.
Uncertainty, Amidst Conflict and Indebtedness, Weighs on the Outlook for the Middle East and North Africa (World Bank)
The World Bank’s new Middle East and North Africa Economic Update, entitled Conflict and Debt in the Middle East and North Africa, shows that lackluster growth, rising indebtedness and heightened uncertainty due to the conflict in the Middle East are impacting economies across the region.
According to the report, MENA economies are expected to return to low growth akin to the decade prior to the pandemic. MENA’s gross domestic product (GDP) is forecast to rise to 2.7% in 2024, which is a tepid increase from 1.9% in 2023. As in 2023, oil importing and oil exporting countries are likely to grow at less disparate rates than 2022, when higher oil prices boosted growth in oil exporters. For Gulf Cooperation Council (GCC) countries, the 2024 growth uptick reflects expectations of robust non-oil sector activity and fading out of oil production cuts towards the end of the year. GDP growth in almost all oil importing countries is expected to decelerate.
Proposed Agoa renewal hangs on US elections outcome, say experts (IOL)
South Africa’s trade relations with the United States could get a reprieve if a new bill for an early extension of the African Growth and Opportunity Act (Agoa) for another 16 years, to 2041, enjoys majority support and is passed by the US Congress.
However, analysts say the upcoming US elections could be a big factor behind the bill to renew Agoa, as both Democrats and Republicans try to fortify US foreign policy and preferential trade agreements in case former president Donald Trump emerges victorious in November.
Stronger value chains are vital for artisanal small-scale mining (African Mining Market)
An international event is taking place in Lusaka, Zambia this week, which is aimed at improving practices in the artisanal and small-scale mining (ASM) of Development Minerals. These are minerals such as construction materials, industrial minerals and semi-precious stones the mining of which support the livelihoods of millions of people, mostly in African countries.
Being held from 15th – 17th April 2024, this forum is being held under held under the European Union (EU) and the Organization of African, Caribbean and Pacific States (OACPS, formerly ACP) Partnership Framework.
“This forum is an opportunity for stakeholders to come together to learn from good practices and innovations for a sustainable and inclusive future of artisanal and small-scale mining.” said James Wakiaga, Resident Representative, UNDP Zambia.
The forum marks the launch of Phase III of the ACP-EU Development Minerals Programme implemented by UNDP. It revisits the Mosi-oa-Tunya Declaration of 2018 on Artisanal and Small-Scale Mining, Quarrying and Development and showcases activities and practices by partners and participating countries implementing the Development Minerals Programme.
Fresh push to deepen Africa, Caribbean ties (NewsDay)
Ties between Africa and the Caribbean are set to deepen with The Bahamas set to host the 31st annual meetings of Afreximbank, the first time the event will be held in the region. Since the African Union’s recognition of the African diaspora as Africa’s sixth region, there has been a push to bolster ties between the two regions.
Afreximbank’s president Benedict Oramah said last week’s signing ceremony for The Bahamas to host the 31st Afreximbank Annual Meetings and the third edition of the AfriCaribbean Trade and Investment Forum from June 12 to 14 set the stage for an event which “will happen beyond contemplation” a few years ago.
“It will solidify the partnership between Afreximbank and CARICOM state, a union that forms the platform for global Africa to take its destiny into its own hands,” Oramah said.
How Geopolitical Changes Influencing Africa’s Unity and Development (Modern Diplomacy)
For seeking long-term influence, Russian elites have oftentimes used elements of anti-colonialism as part of its current policy to control the perceptions of Africans and primarily as new tactics for power projection in Africa. Many academic researchers and policy experts have been discussing the growth of neo-colonial tendencies, the geopolitical developments and the scramble for resources by external countries in Africa.
Connected Africa Summit: PS Tanui roots for bridging of digital divide (KBC)
ICT and Digital economy Principal Secretary Engineer John Tanui says the government has put in place elaborate measures meant to bridge the digital divide across the country.
Speaking during a meeting with media editors and stakeholders ahead of the forthcoming Connected Africa Summit 2024 hosted by the Ministry of Information, Communications and the Digital Economy, Tanui said the government is laying 100,000 kilometers of fiber optic cable as it moves to ensure that every part of the country including public institutions is connected to the internet similar to the last mile power connectivity initiative.
“9.5 million Businesses and homes in the country are connected to electricity while about 1.2 million people are connected to the internet. We want to enhance access to the internet to ensure Kenyans reap from associated benefits” said Tanui. He said the connected Africa Summit will shape the future of the country’s technology landscape setting the stage for unprecedented growth and prosperity.
The G7 Presidency partners with UNDP Africa to advance AI for sustainable development (UNDP)
The G7 Italian Presidency, in collaboration with UNDP, has concluded a series of high-level meetings with African Union (AU) senior officials, African Ambassadors to the AU, the European Union Special Representative to the African Union, and stakeholders from the private sector. The outcome of the meetings is a reinforced commitment to strengthen collaboration on Artificial Intelligence (AI) for sustainable development and collectively address challenges to ensuring access to AI for all.
The Addis Ababa meetings, conducted over two days, come at the heels of the groundbreaking consensus led by Italy with the G7 ministers in Verona, Italy, on 14 March 2024. The Verona meeting recognized the imperative of concerted collaboration between G7 nations and developing countries.
Building on the achievements in Italy through the ‘G7 Verona Process on Digital Development’, the Italian G7 Presidency and UNDP will continue their engagement to co-design an AI Hub for Sustainable Development with African leaders in 2024. This initiative will involve stakeholders from the technology industry, academia and start-ups committed to advancing the Sustainable Development Goals (SDGs).
UN to discuss how to harness data for development (UNCTAD)
The Secretary-General of UN Trade and Development (UNCTAD), Rebeca Grynspan, will lead speakers at the 27th session of the UN Commission on Science and Technology for Development (CSTD) as they examine how to leverage data to accelerate sustainable development. Ministers, policymakers, heads of international organizations and leading experts will convene in Geneva from 15 to 19 April.
They will explore what countries should do to strengthen global cooperation in science, technology and innovation to share sustainable, resilient and innovative solutions that will reinforce the 2030 Agenda and eradicate poverty in times of multiple crises.
Today data is growing in exponential terms, which is unprecedented in human history. As economies and societies become increasingly interwoven with digital technologies, data is increasingly seen as a strategic asset. When managed wisely, data can become a powerful tool in addressing global challenges, ranging from poverty eradication to climate change mitigation. The reason are two folds.
Technology and innovation are powerful drivers of sustainable development and structural transformation in developed and emerging economies. Yet their potential in the Least Developed Countries (LDCs) remains under-realized, hindering the achievement of the Sustainable Development Goals (SDGs): too many countries are not on track to meet the SDGs targets within the current decade.
Technological progress brings the promise to deliver innovative solutions to address some of the most urgent challenges the world is facing today, such as food security, inequality, global health issues and climate change. These challenges transcend borders, demand a collective response, and make the imperative for global cooperation in science, technology, and innovation (STI) more urgent than ever.
Debt concerns grow as development aid shifts from grants to loans (UNCTAD)
The nature of aid also saw a significant shift, moving towards concessional loans instead of grants – a trend that could add additional fiscal strain on developing countries still grappling with the economic aftermath of the COVID-19 pandemic. The share of grants in total ODA fell to 63% in 2022, marking the smallest percentage in two decades – except for the initial year of the COVID-19 pandemic, which saw a drop to 62%.
Members discuss ways to boost developing economies’ participation in global trading system (WTO)
Presenting a new report on the participation of developing economies in the global trading system, the WTO Secretariat noted that developing economies’ trade in merchandise as well as in commercial services have recovered from the pandemic-related decline. While some types of commercial services exports proved comparatively resilient during the pandemic, travel exports in 2022 still lagged behind their 2019 level. Developing economies continue to face challenges in their participation in international trade, such as a dependence on commodity exports and higher trade costs.
New ideas tabled to advance work of information technology committee (WTO)
China introduced its new proposal (G/IT/W/58), which aims to enhance both the functioning and the relevance of the ITA. The proposal suggests regular symposiums or workshops where industry representatives and stakeholders can share the latest developments in the information and communication technology (ICT) sector and the publication of annual statistics on ICT trade. The proposal also suggests ideas on how to enhance information‑sharing on the implementation of the ITA and strengthen cooperation on non-tariff barriers.
Oil demand growing at a slower pace as post-Covid rebound runs its course - Analysis (IEA)
While we expect growth in oil consumption in 2024 (1.2 mb/d) and 2025 (1.1 mb/d) to remain robust by historical standards, structural factors will lead to a gradual easing of oil demand growth over the rest of this decade. Continued rapid gains in the market share of EVs, particularly in China; steady improvements in vehicle fuel economies; and, notably, efforts by Middle Eastern economies, especially Saudi Arabia, to reduce the quantity of oil used in power generation are together expected to generate an overall peak in demand by the turn of the decade.
Oil remains extremely important to the global economy, and across some of its key applications, alternatives still cannot easily be substituted. In the absence of additional energy and climate policies and an increased investment push into clean energy technologies, the decline in global oil demand following the peak will not be a steep one, leaving demand close to current levels for some time. Nevertheless, cooling Chinese demand growth and considerable progress on the deployment of clean energy transition technologies mean that the oil market is set to enter a new and consequential period of transformation.
Quick links
DG Okonjo-Iweala marks 30th anniversary of the Marrakesh Agreement (WTO)
Navigating the Trade Landscape (Svenskt Näringsliv)
China Continues To Dominate An Expanded BRICS (Eurasia Review)
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South Africa seeks to secure global plastics pollution treaty by balancing competing interests (Engineering News)
South Africa will seek to secure a legally binding global plastics pollution and marine litter treaty in negotiations at upcoming global meetings by balancing competing demands, Forestry, Fisheries and the Environment Minister Barbara Creecy told the media on April 12.
The Department of Forestry, Fisheries and the Environment will participate in the fourth Intergovernmental Negotiating Committee (INC-4) meeting to be held in Ottawa, Canada, from April 23 to 29, as well as at a subsequent meeting to be held in early December. With only 85 hours of negotiating time available during the April meeting to secure such a treaty, South Africa will recommend that a lifecycle approach to plastic production, use, recycling and disposal be agreed upon in the first draft of the text of the agreement.
Statement by DIRCO and the Delegation of the European Union to the Republic of South Africa (EEAS)
The Department of International Relations and Cooperation of the Republic of South Africa and the Delegation of the European Union to South Africa regret the misrepresentation made by the media outlets Bloomberg and News 24 yesterday, 8 April 2024 regarding the relationship between the Republic of South Africa and the European Union.
We would like to reject the claim made by these media outlets that the Republic of South Africa has not responded to several requests by the European Union to hold a bilateral South Africa-European Union Summit during 2023. On the contrary, South Africa and the European Union have maintained a regular exchange throughout 2023 in order to prepare their bilateral Summit. This includes a Ministerial Forum in South Africa in January 2023, bilateral contacts at Heads of State level, and ministerial visits to both Pretoria and Brussels.
we also reject the claim made by Bloomberg and News 24 that the delays to the summit are sending a negative signal about future relations between the EU and South Africa. In fact, the above-mentioned regular high-level visits and engagements illustrate the strength, depth and wide-range scope of the strategic partnership between the European Union and South Africa.
Namibia’s Gas Development to Alleviate SADC Power Woes (Energy Capital & Power)
Poised to start production in 2026, the Kudu Conventional Gas Development in Namibia’s Orange Basin could transform the country into a major regional gas exporter. According to Namibia’s national oil company NAMCOR, the development holds an estimated 1.3 trillion cubic feet (tcf) of natural gas, unlocking a windfall of potential revenue for the government and new energy supplies for the Southern African Development Community (SADC).
Meanwhile, a series of significant hydrocarbon discoveries in the deepwater section of the Orange Basin by energy supermajors TotalEnergies and Shell have raised gas estimates to up to 8.7 tcf. If proven commercially viable, these finds have the potential to more than double Namibia’s GDP by 2040. Insights into Namibia’s path to becoming an integrated gas producer will be shared at this year’s Namibia International Energy Conference (NIEC), taking place in Windhoek on April 23-25.
Study launched on value chains for critical raw materials (New Era)
The EU-funded AfricaMaVal project (AfricaMaVal.eu), implemented by the German Federal Institute for Geosciences and Natural Resources (BGR), together with the Namibian company Odikwa Geoservices, recently launched a ‘Country Case Study Namibia’ report. The report, launched on Tuesday at the Geological Survey of Namibia, is an assessment of the investment potential in the domestic mining sector.
The report provides an overview of the geological setting and Extended Critical Raw Materials (ECRM) endowment in Namibia. It shows investment opportunities for extraction and local value addition into these value chains. The report further touched on Namibia’s robust legal framework, labour regulations, the taxation regime, trade barriers and uncertainty about protected areas.
Tanzania seeks homegrown solutions to fortify booming digital economy (The Citizen)
To solidify its position as a leading African digital hub, Tanzania must cultivate its domestic cybersecurity industry and implement cyber insurance, according to experts who convened at the recent 3rd Tanzania Cybersecurity Forum. This was among the 11 resolutions reached when Tanzania hosted the 3rd Cybersecurity Forum in Arusha, with participants believing that by doing so, financial losses post-cyberattacks would be mitigated.
Kenya proposes maritime treaty to defuse Ethiopia-Somalia tensions (The East African)
Kenya has proposed a regional maritime treaty to defuse tensions between Ethiopia and Somalia over a deal allowing Ethiopia to set up a naval base and giving it port access in Somalia’s breakaway region of Somaliland, a top Kenyan official said on Thursday.
Landlocked Ethiopia agreed on January 1 to lease 20 kilometres of coastline in Somaliland, a part of Somalia which claims independence and has had effective autonomy since 1991, offering possible recognition of Somaliland in exchange. That prompted a defiant response from Somalia and fuelled concern the deal could further destabilise the Horn of Africa region.
The treaty Kenya is proposing in consultation with Djibouti and regional bloc Intergovernmental Authority on Development (Igad) would govern how landlocked states in the region can access ports on commercial terms, Korir Sing’oei, Kenya’s principal secretary for Foreign Affairs, told Reuters.
Ethiopia faces tough devaluation decision to secure IMF bailout (The East African)
Ethiopia may have to decide on a big currency devaluation sooner rather than later to secure a rescue loan from the International Monetary Fund (IMF), which left the country last week without reaching a much-needed deal with authorities. East Africa’s most populous country, already struggling with high inflation, became the third African state in as many years to default on its debt in December.
Ethiopia hasn’t received any IMF funds since 2020 and its last lending arrangement with the fund went off track in 2021. The federal government and a rebellious regional authority signed a deal in late 2022 to end a two-year civil war.
Ethiopia earns US$617 million from exporting products in eight months (TV BRICS)
Ethiopia’s economy earned $617 million from exports of products manufactured in the country in the last eight months of the current fiscal year, as reported ENA, citing the Ethiopian Ministry of Trade and Regional Integration. The ministry said it was referring to export goods whose production is supervised by the ministry. The ministry said revenues from product shipments rose by US$80 million compared to the same period last year.
S. Sudan to host regional monetary affairs committee meeting (Sudan Tribune)
South Sudan is preparing to host the East African Community (EAC) monetary affairs committee meeting that will bring together all the governors of central banks in the region. South Sudan’s central bank governor, James Alic Garang, announced that all the governors of the central banks from member states that form the regional body would start arriving in the country from April 26 and 27 2024 and will stay until May 3.
“The first two days will focus on technical committee meetings or working groups. They will review the progress. Usually, the review focuses on conversion criteria,” he explained. One of those, according to Garang, revolves around the import cover, meaning they look at the country’s growth reserve and see that relative to how many imports they can cover in several months.
Zanzibar to host EAC aviation conference (Tanzania Daily News)
Zanzibar is set to host the sixth Civil Aviation Safety and Security Oversight Agency (CASSOA) conference, scheduled for May 16th-17th, 2024. The event will spotlight sustainable environmental issues in the aviation sector.
Speaking to journalists in Dar es Salaam on Friday, Hamza Johari, the Director General of the Tanzania Civil Aviation Authority (TCAA), announced that the conference will convene key aviation stakeholders, including airlines, airports, managers, and security officials from East African Community (EAC) member countries. Mr Johari highlighted that the sixth EAC-CASSOA conference will delve into exploring and revitalizing the space industry, with a focus on restoring consumer confidence and increasing awareness of opportunities related to current space innovations.
Survey reveals lack of AfCFTA awareness among women and youth in business (The Business & Financial Times)
According to a situational analysis conducted by the Aya Institute for Women, Politics and Media, there is a lack of detailed information on the African Continental Free Trade Area (AfCFTA) among women and youth in business. Programmes Coordinator of the institute, Bridget Biney, explained that information about the protocol has primarily reached technical experts and businesses, leaving women and youth in the micro, small and medium enterprises (MSMEs) sector with little to no knowledge about AfCFTA.
“We’re facing a significant challenge where there’s limited or insufficient information about the AfCFTA; it’s not widely known. Currently, discussions about the AfCFTA protocol and related matters are mainly confined to technical or business circles. However, we have the opportunity to demystify the AfCFTA for every aspiring entrepreneur or young person interested in business, making the agreement accessible and understandable to all,” she noted.
UK lifts tariffs on east African flower exports to boost trade (Africanews)
The United Kingdom has announced the temporary suspension of export tariffs on cut flowers originating from East Africa. Effective from April 11, 2024, to June 30, 2026, this suspension marks a pivotal moment in trade dynamics between the UK and East African nations.
The suspension of tariffs is particularly beneficial for flower growers in countries such as Kenya, Ethiopia, Rwanda, Tanzania, and Uganda, which are renowned for their flourishing floral industries. These regions rely heavily on exporting cut flowers to international markets, with the UK being a key destination.
By removing export tariffs for a period of two years, the UK aims to streamline trade processes and reduce costs associated with exporting flowers to the UK market. This initiative not only enhances the competitiveness of East African flower exports but also strengthens the economic ties between the UK and the region.
Risch, Coons Introduce Legislation to Renew Trade Partnership Between U.S. and Sub-Saharan African Countries (US Foreign Relations Committee)
U.S. Senators Jim Risch (R-Idaho), ranking member of the Senate Foreign Relations Committee, and Chris Coons (D-Del.), introduced the African Growth and Opportunity Act (AGOA) Renewal and Improvement Act of 2024 today to renew and strengthen a key trade program with sub-Saharan African countries. AGOA is a trade preference program that facilitates deeper investment and stronger commercial ties between the United States and sub-Saharan African countries. First enacted in 2000, AGOA is due to sunset next year.
“AGOA plays a significant role in U.S.-sub-Saharan Africa trade and investment, as well as in U.S. foreign policy. This bipartisan bill aims to refine AGOA’s eligibility criteria, increase transparency, and hold U.S. agencies accountable for their advice to the president,” said Risch. “This legislation will bolster Congress’ involvement in the eligibility process and oversight, demonstrating a strong commitment to AGOA. I encourage my colleagues to swiftly reauthorize AGOA and the next administration to pursue a broader, two-way strategy with Africa that goes beyond trade preferences and meets the needs of the 21st century.”
pdf AGOA Renewal and Improvement Act of 2024: Sens Chris Coons & James Risch - Summary (110 KB)
Related:
AAFA rally behind 16-year AGOA extension to sustain US, African trade stability (Just Style)
AGOA extension welcomed – Dion George (Politicsweb)
The Bahamas to Host 2024 Afreximbank Annual Meetings and AfriCaribbean Trade and Investment Forum (Afreximbank)
The Government of the Commonwealth of The Bahamas and African Export-Import Bank (Afreximbank) have today signed the Agreement for The Bahamas to host the 31st Afreximbank Annual Meetings (AAM) and the third edition of the AfriCaribbean Trade and Investment Forum (ACTIF). The AAM will be held in Nassau, The Bahamas, from 12 – 14 June 2024.
Professor Benedict Oramah, President and Chairman of the Board of Directors, Afreximbank, said: “Afreximbank’s historic decision to hold the 31st Afreximbank Annual Meetings in The Bahamas will be the first time it has been held in the Caribbean. There is a hugely positive outlook for many African and CARICOM countries – as demonstrated by the IMF’s forecast that seven African countries and one CARICOM country will be in the top 10 fastest growing economies globally – so cementing closer links between the two regions is of clear mutual benefit to accelerate growth and prosperity.
“We are in an era where some major global economies are reacting to geopolitical tensions by restricting international trade to prioritise their domestic industries. This partial move away from the rules-based trading system, where international trade is conducted according to agreed-upon transparent, non-discriminatory, and impartial rules, threatens the longstanding reliance of African economies on global support for shared growth and prosperity. In this context, the theme for the31st AAM and the 3rd ACTIF is ‘Owing Our Destiny: Economic Prosperity on the Platform of Global Africa.’ This theme reflects our focus on broadening the discourse to determine 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 to accelerate intra-African trade and investment flows, including with the diaspora.”
China tops FDI confidence index of emerging markets (Asia News)
China topped the most recent Kearney’s 2024 Foreign Direct Investment Confidence Index emerging market rankings and jumped from the seventh to the third spot in the world rankings. The report examines investor perceptions of foreign direct investment flows over the next three years and deems that investors remain optimistic about the global economy.
Globally, 88 percent of respondents plan to increase FDI over the next three years, up 6 percent from last year, according to the report. As high as 89 percent of respondents believe that FDI will play a more important role in building their companies’ profitability and competitiveness over the next three years.
The report also pointed out that although investors are more optimistic about overall FDI trends, they are cautious about increasing risks in the global operating environment. Eighty-five percent of respondents believe that rising geopolitical tensions will affect their investment decisions, with some companies choosing to invest in nearshore or friendshore markets as a result. In addition, investors predict that further tightening of business regulations in both developed and emerging markets may pose risks for investment in the coming year.
Digital Economy Summit to forge sustainable future (with photos) (Government of Hong Kong)
Digital Economy Summit (DES) 2024 has kicked off today (April 12) at the Hong Kong Convention and Exhibition Centre (HKCEC) with the theme “Smarter Technovation for All: Forging a Sustainable Future”. The two-day Summit is expected to attract over 4,000 attendees from close to 40 countries/regions to listen to insights from over 100 renowned technology visionaries, industry pioneers and business leaders from home and abroad on how cutting-edge technologies and innovative applications are reshaping the urban landscape and modern digital economy from the perspectives of sustainability, connectivity, and resilience.
Building on the resounding success of the previous edition, this year’s DES features an action-packed programme with eight thematic forums, examining a wide array of trending innovation and technology (I&T) topics and future developments in new quality productive forces, artificial intelligence (AI), business innovation, smart industrialisation and supply chain, smart mobility, new energy, smart finance, Web3.0, as well as smart living and inclusion.
See also: Twelve core recommendations given to govt on fast-tracking digital economy development (The Standard)
Industrial Policy is Back But the Bar to Get it Right Is High (IMF)
Governments have traditionally used targeted interventions known as industrial policy to make domestic producers more competitive or promote growth in selected industries. While some developing countries continued to use it, industrial policy fell out of favor across most of the world for years, because of its complexity and uncertain benefits.
Now, industrial policy appears to be back everywhere. The pandemic, heightened geopolitical tensions, and the climate crisis raised concerns about the resilience of supply chains, economic and national security, and more generally about the ability of markets to allocate resources efficiently and address these concerns. As a result, governments came under pressure to have a more active industrial policy stance.
Trade growth likely to pick up in 2024 in spite of challenging environment (WTO Blog)
The latest edition of the WTO’s “Global Trade Outlook and Statistics” foresees a gradual recovery in world merchandise trade volume in 2024 and 2025. This follows a contraction in 2023 driven by the lingering effects of high energy prices and inflation in advanced economies, particularly Europe. So, what does our forecast indicate?
Specifically, we expect merchandise trade to grow by 2.6% in 2024 and 3.3% in 2025 after falling by 1.2% in 2023. However, there is a downside risk due to regional conflicts, geopolitical tensions and economic policy uncertainty.
In value terms, merchandise trade fell 5% in 2023 to US$ 24.01 trillion but the decline was mostly offset by a 9% increase in commercial services trade, which reached around US$ 7.54 trillion. Total goods and services trade was only down 2%. A particularly bright spot for services was the global exports of digitally delivered services, which reached US$ 4.25 trillion in 2023, up 9% year-on-year, accounting for 13.8% of world exports of goods and services.
WTO: Africa’s exports to grow by 5.3% in 2024, fastest in the world (Asaase Radio)
The World Trade Organisation (WTO) is projecting that exports from Africa will increase at the fastest pace in 2024 by 5.3% when compared with other regions. This is contained in the World Trade Organization’s trade outlook for 2024 According to the report, the continent’s exports will exceed pre-pandemic levels, but imports will continue to limp as a result of higher energy and commodity prices.
Moving forward, the report warns that geopolitical tensions and policy uncertainty could limit the extent of the trade rebound. Food and energy prices could again be subject to price spikes linked to geopolitical events. The report’s special analytical section on the Red Sea crisis notes that while the economic impact of the Suez Canal disruptions stemming from the Middle East conflict has so far been relatively limited, some sectors, such as automotive products, fertilisers and retail, have already been affected by delays and freight costs hikes.
Strong import volume growth of 5.6% in Asia and 4.4% in Africa should help prop up global demand for traded goods this year. However, all other regions are expected to see below average import growth, including South America (2.7%), the Middle East (1.2%), North America (1.0%), Europe (0.1%) and the CIS region (-3.8%).
Development aid hits record high but falls for developing countries (UNCTAD)
For millions of people, ODA means having electricity, medical care and food on the table. It means an opportunity for a better future. ODA, also referred to as aid, is the most stable and predictable source of external financing for developing countries, especially in times of crisis. But international crises leave visible marks on it, generating new demands and reshuffling priorities.
A new report by the UN Global Crisis Response Group entitled “Aid under pressure“ analyses the shifts in ODA. Despite reaching record levels in 2022, ODA decreased by $4 billion for developing countries, marking a 2% drop. Over 70 developing countries, including 24 least developed countries and 15 small island developing states, suffered declines. The affected countries are home to more than 2.9 billion people. Moreover, ODA fell $143 billion short of the Sustainable Development Goal 17 target.
In 2022, members of the Development Assistance Committee (DAC) devoted just 0.37% of their gross national income (GNI) to ODA. Had they met the SDG 17.2 aid target of 0.7%, they could have almost doubled aid inflows to developing countries.
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Embracing regional integration could be SA’s way out of its financial pickle (EWN)
China continues to dominate an expanded BRICS (East Asia Forum)
Italy to invite African, South American leaders to G7 summit (Reuters)
G20 members make limited progress on decarbonisation (EnvironmentJournal)
Opinion: Moving from hype to reality – how green hydrogen’s role in the energy transition is evolving (Engineering News)
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South Africa well placed to benefit from huge green hydrogen outlook, attendees hear (Engineering News)
Green hydrogen has a massive potential future and South Africa is very well positioned to produce it, attendees of the Hydrogen Economy Discussion heard on Thursday. Most of the 90-million tonnes of hydrogen produced currently through the likes of South Africa’s Sasol and others is grey. Not only must all of that become green, but it also needs to grow seven times bigger to allow green hydrogen to become a necessary 7% of the energy mix.
“From a South Africa perspective, we’re very well positioned through our energy resources in terms of both solar radiation and onshore wind, our lengthy coastline and ability to desalinate water for hydrogen production, our proximity to both the European and Asian markets, and having places like the Northern Cape, which are significant land masses,” South Africa’s Ministerial advisor and Presidency green hydrogen lead Masopha Moshoeshoe highlighted at the event covered by Mining Weekly.
South Sudan clarifies new $350 levy on goods imports (The East African)
The Mombasa Monitoring Station-National Revenue Authority of South Sudan has clarified that only exporters and importers will be required to comply with the payment of $350 (Ksh46,000) levy being charged per unit to all goods destined to South Sudan and not clearing agents. In its response to a petition by clearing agents, the Authority said that a clearing agent should not use own funds to pay the service charge (levy).
“The payment of this service is at all times to be paid by the importer or exporter of cargo into and out of South Sudan respectively,” the response by Mombasa Monitoring Station-National Revenue Authority of South Sudan filed in court read. Clearing agents under Kenya International Freight and Warehousing Association (Kifwa) challenged imposition of the levy.
Kenya, Ghana attempt smooth trade in cagey Africa (The East African)
Kenya and Ghana, on opposite sides of the continent, say they want to revive trade between them. And they see their vast deposits of gemstones and prized agricultural products as key to boosting their commercial partnership.
On a state visit to Accra last week, Kenya’s President William Ruto and his host Ghana’s leader Nana Akufo-Addo, witnessed the signing of several bilateral agreements and memorandums of understanding. One of the agreements was between the Ghana Investment Promotion Centre (GIPC) and the Kenya Investment Authority (KIA). Others were between the Association of Ghana Industries and the Kenya Association of Manufacturers, a kind of peer-to-peer relationship. There are not many similarities. But the ones that do exist could help boost trade. They are among Africa’s most stable economies (although Ghana, like Kenya, has struggled with foreign debt).
In Africa, trade has often been hampered by a lack of manufacturing, meaning that countries produce similar products that cannot be sold across borders. This is in addition to the many tariff and non-tariff barriers such as language differences, currency conversion problems, infrastructure problems and insecurity. But since AfCTA was signed five years ago, enthusiasts like Ghana and Kenya have been looking for opportunities.
Business is blooming in East Africa – UK suspends tariff for flower exports (GOV.UK)
From today, the UK has temporarily removed export tariffs for cut flowers, with the aim of making trade with the UK easier and cheaper for growers in East Africa and beyond. Unlimited quantities of flowers can now be exported to the UK at 0% tariff, even if they transit via a third country. This is particularly important for East African flower growers who transport their blooms via third-countries or auction houses before they arrive in the UK.
The move aims to increase trade and further strengthen the economic relationship between the UK and the region. UK consumers could win big too – on price, seasonality and variety. The suspension of 8% duty for cut flowers applies across the world but will be a big win for major flower growing regions in Kenya, Ethiopia, Rwanda, Tanzania, and Uganda. The duty suspension will remain in place for two years from 11 April 2024 to 30 June 2026.
Unlocking Malawi’s Trade Barriers Through One-Stop Border Posts (World Bank)
The Dedza border post, situated between Malawi and Mozambique, is a busy place. On average, more than 80 trucks are cleared daily, carrying shop merchandise from South Africa to Malawi including fertilizers for Malawi’s agriculture sector.
For the past few years, before the construction of the new One-Stop Border Post (OSBP) facility, it took about 24 to 36 hours to clear a truck carrying items such as wheat, fertilizers, groceries, and raw materials for Malawi’s manufacturing industry. Drivers and clearing agents had to dash from one office to another between the two countries to clear the goods. Malawian traders traveling to and from South Africa through the Dedza–Mozambique border had difficulty locating the appropriate offices to present the required paperwork. In addition, the lack of parking facilities meant that the road leading to the border post was always congested, as trucks scrambled for space to park while waiting to be cleared.
The Dedza One-Stop Border Post, which was completed in 2023, boasts two examination bays for goods, parking spots for 100 freight trucks, and a modern passenger terminal. “We now take less than half a day to process all the paperwork to clear the goods that we have carried, which is far less than the minimum of three days that we used to spend here,” says Flatella Makwakwa, a truck driver who has been using the Dedza border for more than three years. He also acknowledges the benefits of the new system when it comes to facilitating the passing of trucks and making life more comfortable for the users.
Burundi, DR Congo to Establish Joint Border Committees (COMESA)
Small-scale cross-border traders between Burundi and the Democratic Republic of Congo have agreed on Terms of Reference (TORs) that will pave the way for the establishment of Joint Border Committees. These committees will assist in making trade faster, safer, and cheaper across the border. The implementation of the JBCs is in line with the Bilateral Trade Agreement between Burundi and the DRC signed in April 2022.
With support from the Great Lakes Trade Facilitation and Integration Project (GLTFIP) financed by the World Bank, COMESA convened a three-day technical meeting from 26 to 28 March 2024 in Burundi to assist the two member states in setting up JBCs along their common borders.
Currently, tradable commodities, particularly agricultural products, face various regulations, leading to multiple inspections and other controls by border agencies. The meeting noted that the uncoordinated application of these regulations and controls often frustrates the seamless flow of trade across borders, making small-scale cross-border trade costly and risky.
Africans should unite, maximise on trade opportunities on continent – says re-elected PAP president Charumbira (New Zimbabwe)
Africans should be conscientised on the trade opportunities available to them, recently re-elected Pan African Parliament president, Senator Chief Fortune Charumbira, has said. Addressing journalists after meeting President Emmerson Mnangagwa at State House recently, Charumbira said his first task was to unite over 270 PAP MPs and to ensure Africans become aware of the great business potential within the continent.
“The first one is unity to the Parliament. We have been fractured, but l can assure you that l will embark on a programme of uniting over 270 PAP members. One major issue on the continent is that of trade through the African Continental Free Trade Area (ACFTA). “The main issue on the PAP is Agenda 2063 pronounced by the African Union (AU) and the issue of trade on the continent,” Charumbira said. He urged countries that have not ratified the Protocol on Trade to do so and to conscientise Africans on the opportunities available on trade under the AFCTA.
Developing Further The Social Dimension Of The African Continental Free Trade Area (Forbes Africa)
Lauded as the key to Africa’s economic fortunes, the African Continental Free Trade Area (AfCFTA) has been met with much excitement. Indeed, this area holds great economic promise for the continent but there are some glaring gaps that require consideration – particularly from a social dimension. Established in 2018 by the African Continental Free Trade Agreement, AfCFTA entails the creation of a consolidated marketplace for goods and services throughout the African continent.
According to a 2022 World Bank report, this agreement could generate vast economic benefits, embracing 1.3 billion people and a combined GDP of $3.4 trillion. If fully implemented, the agreement is expected to increase income by 9% by 2035 and help uplift 50 million individuals from extreme poverty.
Yet, there has been little consideration of the impact of this movement on social security, an important policy tool that addresses socio-economic challenges, contributes to long-term development, and promotes a more equitable and resilient society. In Africa, particularly, its impact cannot be overlooked.
US senators will introduce bill to renew Africa trade pact through 2041 (Reuters)
A bipartisan group of senators will introduce a bill to renew the United States’ trade pact with sub-Saharan Africa ahead of its expiration next year, an aide to one of the senators said on Thursday.
The bill was introduced by Senators Chris Coons, a Democrat, and James Risch, the top Republican on the Senate Foreign Relations Committee. A cross-party group of senators - Dick Durbin, Michael Bennet, Chris van Hollen, Todd Young and Mike Rounds - are also co-sponsoring the bill. An aide to Coons said it was a high priority to reauthorize the African Growth and Opportunity Act (AGOA) this year.
The bill, which was seen exclusively by Reuters, would renew the African Growth and Opportunity Act for 16 years, through 2041, and help countries implement strategies to take advantage of the program. It would also maintain benefits for countries as they grow richer, enabling them to remain in the program if they are determined to be high-income for five years rather than removing them if they reach that threshold for a single year.
China eyes digital, green economy cooperation potential in Africa: MOC (Xinhua)
China’s Ministry of Commerce (MOC) said on Thursday that the government encourages Chinese companies to explore new investment potential in Africa in such areas as digital economy and green development, and to innovate the investment-construction-operation model. Responding to a media enquiry on China’s investment in Africa, MOC spokesperson He Yadong said at a press conference that the government encourages Chinese firms to expand economic and trade cooperation in Africa in accordance with commercial and market rules.
“In recent years, China’s investment and cooperation with Africa have developed steadily and healthily,” he said, adding that in 2023, China’s direct investment in Africa maintained a growing trend, with projects covering diversified sectors such as building materials, automobiles, home appliances and agricultural product processing.
Gender Equality and Economic Development in Sub-Saharan Africa (IMF)
Efforts to achieve gender equality will not only help sub-Saharan Africa revive its inclusive growth engine but also will ensure progress towards the Sustainable Development Goals and help address the main disruptive challenges of this century. This book explores the progress made in gender equality in the region, highlighting both the challenges and successes in areas such as legal reforms; education; health; gender-based violence; harmful practices, such as child marriage; and financial inclusion. It takes stock of initiatives towards integrating gender into core macroeconomic and structural reforms, such as through implementing gender budgeting and examines the role that fiscal and other policies can play in closing gender gaps when they are mindful of distributional impacts.
Drawing from extensive research across different institutions, the book underscores the macroeconomic significance of gender equality, emphasizing its potential to drive GDP growth, enhance economic stability, reduce income inequality, and foster sustainable development. It lays out how gender gaps interact with emerging challenges, such as digitalization, and explores the impact of global megatrends, such as climate change, on gender inequality, offering strategies for inclusive policy responses—including in a context where women and girls are still carrying a disproportionate care burden that is often not captured in economic measurement.
The book aims to serve as a roadmap for policymakers, stakeholders, and advocates seeking to harness the untapped potential of gender equality—for its own sake and for the region’s inclusive, sustainable, and green development. It calls for concerted efforts to dismantle structural barriers, transform social norms, and prioritize gender-responsive policies to unlock the full economic potential of sub-Saharan Africa.
Global coal power grew 2% last year, the most since 2016, GEM survey says (Engineering News)
The world’s coal-fired power capacity grew 2% last year, its highest annual increase since 2016, driven by new builds in China and decommissioning delays elsewhere, according to research published on Thursday. Despite record renewable additions, nearly 70 gigawatts (GW) of new coal power capacity were commissioned across the world last year, including 47.4 GW in China, the U.S.-based Global Energy Monitor think tank said in its annual survey. Coal-fired capacity outside China also grew for the first time since 2019, while worldwide only 21.1 GW was shut down, the survey said.
Since the Paris Agreement was signed in 2015, 25 countries have cut coal-fired power capacity, but 35 have increased it, and far more needs to be done, said Flora Champenois, the GEM report’s lead author. “The world is heading in the right direction in terms of coal’s role in the energy sector, but not quickly enough, and with some risky detours along the way,” Champenois said.
Russia is considering the possibility of creating a BRICS grain exchange (Oreanda-News)
The updated BRICS strengthens its position on several fronts at once. Russia plans to create a common grain exchange. This will strengthen the importance of Moscow as a key supplier and increase the food security of the interstate association. In addition, it transforms international trade, and not in favor of Western manufacturers. At the end of last year, the Union of Grain Exporters appealed to the Ministry of Agriculture.
According to the estimates of the Union of Exporters, the five countries of the “old” BRICS represent 40% of the global grain market. Total production is 1.17 billion tons, consumption is 1.1 billion. In January, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates joined the international organization. Now the figures are 1.23 and 1.22 billion, respectively. The BRICS grain Exchange would bring together leading buyers and suppliers, Russian exporters stressed.
Economists admit that there really is a problem, the established order needs to be changed — both in the interests of Russia and taking into account the “grain potential” of the entire BRICS.
UN: AI resolution must prioritise human rights and sustainable development (Article 19)
We, the undersigned civil society organisations, welcome the United States-led United Nations (UN) General Assembly resolution ‘Seizing the opportunities of safe, secure and trustworthy artificial intelligence systems for sustainable development’. Stakeholders far from UN grounds benefit when states clarify their position on new and emerging technologies and how international law, including international human rights law, and sustainable development commitments apply to fields like artificial intelligence. This is especially true with all the hype, murky definitions, and self-interested boosters surrounding artificial intelligence.
New data shows majority of companies are overlooking plastic-related risks (CDP)
Thousands of companies are behind on key steps to tackle plastic pollution in their value chains, according to landmark data released today by CDP, the non-profit that runs the world’s environmental disclosure system. The data reveals, for the first time, the extent of companies’ awareness of their contribution to the plastic crisis, and presents a strong baseline for accelerating action at the fourth round of Global Plastics Treaty negotiations (INC-4) later this month, where mandatory corporate disclosure is on the table.
Findings show that almost half (42%) of companies took the vital first step of mapping where plastics were produced and used within their value chains in 2023. However, there are significant gaps in corporate understanding and action:
Aid under pressure: 3 accelerating shifts in official development assistance (UNCTAD)
Official Development Assistance (ODA) is more than just cash. It is a powerful way to make a difference where it matters most. It is aimed at improving economic development and welfare for millions of people. ODA, also referred to as aid, means having access to electricity and medical care, having food on the table, or even having an opportunity for a better future.
Global ODA reached record levels in 2022, $287 billion at constant 2021 prices, but continues to fall short of the SDG 17 aid target. ODA from DAC donors remained $143 billion below the SDG 17 aid target of 0.7% of their gross national income. Moreover the aid landscape is undergoing shifts that may be detrimental to the development aspiration of some countries.
Along with remittances and foreign direct investment, ODA represents a major source of external financing. While ODA is the smallest of these three sources in developing countries overall, for vulnerable countries, it often represents the main source of external financing. Yet international crises leave visible marks on the ODA landscape, generating new demands and reshuffling priorities.
Aid flows to developing regions fell by $4 billion despite global ODA reaching record levels in 2022. ODA for developing countries decreased by 2%. It fell by more than 3.5% for Africa, Asia and Oceania and least developed countries (LDCs) between 2021 and 2022. The decline in ODA affected the majority of developing countries, including 24 LDCs and 15 Small Island Developing States (SIDS).
International aid rises in 2023 with increased support to Ukraine and humanitarian needs (OECD)
International aid from official donors rose in 2023 to a new all-time high of USD 223.7 billion, up from USD 211 billion in 2022, as provider countries increased aid flows to Ukraine and directed more humanitarian assistance to developing countries, according to preliminary data collected by the OECD.
In 2023, the 1.8% rise in real terms was the latest in a series of annual increases in Official Development Assistance (ODA) provided by members of the OECD’s Development Assistance Committee (DAC) and the fifth consecutive year that ODA has set a new record. Total 2023 aid is up by a third from 2019 levels, reflecting the additional aid provided since, related to the COVID-19 pandemic and Russia’s war of aggression against Ukraine.
Massive investment is needed in sustainable infrastructure to build climate change resilience (OECD)
Record global temperatures around 1.4 degrees Celsius above pre-industrial averages led to more heatwaves and floods, longer wildfire seasons and widespread droughts in 2023. A new OECD report details the growing pressure of such climatic events on infrastructure in all sectors, from electricity, communication and transport networks to water and waste treatment, with developing countries often particularly hard hit.
The Infrastructure for a Climate-Resilient Future report released today during the OECD Infrastructure Forum, recommends governments systematically factor climate resilience into infrastructure planning and decision-making, including by prioritising sustainable projects, to help reduce societal and economic vulnerability and avoid long-term costs. Climate-resilience measures can also protect investment returns, ensure business continuity and support continued economic growth and development.
Industrial Policy Is Not a Magic Cure for Slow Growth (IMF Blog)
Many countries are ramping up industrial policy to boost innovation in specific sectors in the hope of reigniting productivity and long-term growth, amid security concerns.
Industrial policy, in which governments support individual sectors, can drive innovation if done right. But striking the right balance is a crucial consideration, as history is full of cautionary tales of policy mistakes, high fiscal costs, and negative spillovers in other countries.
This recent turn to industrial policy to support innovation in specific sectors and technologies is not a magic bullet, as we show in a chapter of the April 2024 Fiscal Monitor. Instead, well-designed fiscal policies that support innovation and technology diffusion more broadly, with an emphasis on fundamental research that forms the basis of applied innovation, can lead to higher growth across countries and accelerate the transition to a greener and more digital economy.
Most industrial policy relies heavily on costly subsidies or tax breaks, which can be detrimental for productivity and welfare if not effectively targeted.
Lifting up growth prospects is paramount to improve living standards and strengthen economic resilience. It requires eliminating constraints to economic activity and creating opportunities to boost productivity growth. Foundational reforms — strengthening governance, cutting red tape, increasing female labor market participation, improving access to capital — all have a role to play. Across emerging and developing countries, a well-sequenced package of reforms could lift output by 8 percent in four years.
Even more can be achieved with policies to encourage economic transformation — to speed up the green and digital transition. How well we handle them will define the legacy of this decade. This is particularly important for the green transition. How quickly we advance it will have tremendous significance for whether we succeed to tame climate risks. But the shift to a climate friendly economy goes beyond managing risks. It also offers tremendous opportunities for investment, jobs, and growth.
Technological advancements affect many sectors of the economy—from manufacturing to healthcare and financial services. We have been transitioning to a new digital economy, and now AI is likely to dramatically accelerate the fourth Industrial Revolution.
The pandemic, wars, and geopolitical tensions have changed the playbook for global economic relations. Policymakers are looking to strike a balance between efficiency and security, between cost considerations and resilience in supply chains. There are already signs that trade relations are being re-shaped.
Open letter to G20 health ministers calls to ‘preserve IP enablers’ (BusinessLine)
Health ministers of the G20 countries have been urged by representatives of the international pharmaceutical industry to protect intellectual property (IP), to enable technology transfers and voluntary collaborations, among other things.
In a joint open letter, three organisations including the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) have called on health ministers of these countries to “preserve health innovation enablers” like the intellectual property framework, for example, in their policies and programs worldwide. The submission comes against the backdrop of the Second G20 Health Working Group meeting this week at Brasilia.
The IP enablers “underpin legal security to enhance the potential for increased trade, investments and voluntary collaborations, including technology transfer in G20 countries,” said the joint letter from IFPMA, US-based nutritional supplements company Interfarma, and FIFARMA (the Latin American Federation of the pharmaceutical industry).
New Global Services Trade Data Hub offers extensive, tailored access to WTO data (WTO)
The new Global Services Trade Data Hub now available on the WTO website provides access to comprehensive data on services trade. It provides visualizations and customizable features for download – catering to the diverse needs of trade negotiators, analysts, researchers and decision-makers – to deliver insights into global services trade.
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China-Africa ties: A Chinese ‘debt trap’? (France 24)
Africa-China cooperation and prospects of a shared future (The Nation Newspaper)
Russia’s BRICS Chairmanship: Priorities and Goals (TV BRICS)
BRICS vs G7: The Fight is On (Asia Sentinel)
Strengthening the G20 Common Framework a global public good that benefits all (Arab News)
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South African fossil fuel subsidies hit record R118bn in 2023 (Engineering News)
A new study has found that South Africa’s fossil fuel subsidies tripled between 2018 and 2023, rising to R118-billion from R39-billion over the period, with subsidies having been increased largely in response to the surge in fuel prices following Russia’s invasion of Ukraine in 2022.
Titled ‘Blackouts and Backsliding: Energy Subsidies in South Africa 2023’, the International Institute for Sustainable Development (IISD) report calculates that oil and gas subsidies more than doubled over the five years to R52-billion compared with R23-billion in 2018. The value-added tax exemption on the sale of petroleum, diesel and illuminating paraffin remained the highest-value oil and gas subsidy at R30-billion, but other oil and gas subsidies also increased.
“Over 700 Ghanaian Products Absorbed Under AfCFTA’s Guided Trade Initiative” (The Presidency Ghana)
The President of the Republic, Nana Addo Dankwa Akufo-Addo, has during the State visit of the President of Guinea-Bissau Umaro Mokhtar Sissoco Embaló, announced the giant strides being made by Ghanaian products under the Guide Trade Initiative of the African Continental Free Trade Area.
Following the maiden roll out of the Guided Trade Initiative, President Akufo-Addo said, over 700 AfCFTA self-defined products from Ghana such as cosmetics, processed foods, coconut oil, Shea butter and garments, have been rolled out and targeted by the AfCFTA market under the Guided Trade Initiative which was launched in October 2022.
Speaking at a Joint Press conference at the close of bilateral engagements with President Embaló and his Ministerial team from Guinea Bissau who are on State visit to Ghana, President Akufo-Addo said such transformative showing, “will give us the best opportunity to derive maximum benefit from our abundant natural resources and from our participation in the AfCFTA, and help bring progress and prosperity to our people”
Kenya’s Miraa Exports to Somalia Suffer Due to High Levies (Business Day Africa)
Kenya’s miraa exports are taking a severe blow from steep levies, compelling traders in Somalia to halt purchases of the stimulant from Kenya due to its dwindling competitiveness in the market. This development is adversely impacting local farmers who are unable to sell their produce due to the lack of market options, given that Somalia stands as the primary destination for miraa exports from Kenya.
To access the lucrative Somali market, Kenya’s stimulant is burdened with a hefty $4.5 levy per kilogramme, rendering it financially unviable for buyers in Mogadishu. Kenya’s miraa traders argue that with the commission in place, the stimulant in Mogadishu must sell for upwards of $30 for a bundle, which many consumers cannot afford.
Uganda traders in a fix over tight rules on China imports (The East African)
Ugandan small-scale traders who buy goods from China are grappling with gaps in cargo documentation, rising import tax bills and bureaucracy even with advanced trade management tools from the taxman. A directive by the Uganda Revenue Authority (URA) that requires importers to submit master and house bills of lading for all cargo containers arriving in the country, has left the traders who prefer consolidation of cargo in a dilemma.
A master bill of lading refers to a freight document that provides details about the ownership of goods packed in a container, names of the shipping company, cargo destination, supplier’s names and Cost Insurance Freight (CIF) value among others.
“A cargo container that arrives in the country must have a master’s bill of lading and a house bill of lading attached to it in case of multiple batches of cargo. But some containers arrive from China with a master’s bill of lading while the house bills of lading are missing.
Navigating the nexus of hunger, food waste and sustainable development in Ghana (MyJoyOnline)
According to the African Regional Overview of Food Security and Nutrition provided by the Food and Agriculture Organization, it is concerning that Africa is currently not making significant progress towards fulfilling the Sustainable Development Goal (SDG) 2 targets. According to the recently released Food Waste Index Report 2021, Ghana is the only country in the African region where the household waste estimate has achieved a high level of confidence.
Kenya’s Sugar Pricing Committee Cuts Cane Prices by 14 Percent (Business Day Africa)
Kenya’s Sugar Pricing Committee has implemented a 14 percent reduction in the price of sugarcane, responding to a concurrent decrease in the cost of the commodity on the retail market. In the most recent review, the committee, mandated with periodically assessing sugarcane prices, revised the cost from Ksh5,900 per tonne in March to Ksh5,100, marking one of the sharpest cuts in recent months.
“The second Interim Sugar Pricing Committee held a meeting on Thursday April 4, 2024 in Kisumu. During the meeting to review sugarcane price, the committee resolved that the new sugarcane price will be Ksh5,100 effective Monday April 8,2024,” said the Head of Sugar Directorate Jude Chesire in a letter to stakeholders. The directorate cited a notable decline in retail sugar prices as the driving factor behind this adjustment.
Border remains open for importation of potatoes (The Namibian)
Potatoes maintained their place on the open import list as the Namibian Agronomic Board (NAB) closed the border for the importation of six of the 20 horticultural products on the special controlled products list for the period 1-30 April. This underscores the challenges local farmers are facing in meeting demand for the staple crop and seven other crops.
According to a notice to all horticulture traders issued by chief executive Fidelis Mwazi on 25 March, the border is closed for the importation of all types and sizes of butternut, cabbage, English cucumber, green pepper, pumpkin and watermelon, except for exclusions.
Government officials, trade representatives and other stakeholders from the Republic of Uganda and the Republic of South Sudan convened at Nimule Border on Tuesday for a high-level joint border sensitisation mission focused on strengthening cross-border trade relations and fostering regional integration. The mission provided a platform for in-depth discussions on various issues impacting trade between the two Partner States, with a particular emphasis on the implementation of One Stop Border Posts (OSBPs) and other trade facilitation measures.
A key highlight of the mission was the in-depth review of the performance of the OSBPs, which aim to streamline clearance processes and enhance security measures at border points. Stakeholders underscored the importance of consolidating various government agencies into one central location to expedite clearance times and simplify procedures for cross-border traders.
Southern African Development Community (SADC) Member States meet to validate Regional Biodiversity Strategy and Action Plan (Ventures Africa)
The Food and Agriculture Organization of the United Nations (FAO) in collaboration with the Southern African Development Community (SADC), have organized a three-day workshop to validate the SADC Biodiversity Strategy and Action Plan (BSAP). From 8 to 10 April 2024, more than 80 representatives from SADC Member States, environment and agriculture sectors, development partners and the private sector will review and validate the revised draft SADC BSAP.
Biodiversity initiatives in the region have been guided by the first SADC Regional Biodiversity Strategy of 2008 and the 2010 SADC Regional Action Plan. The reviewed SADC BSAP will cover a 10-year period (2025-2035) and will be aligned with the African Union’s Biodiversity strategy and the Kunming-Montreal Global Biodiversity Framework.
Niger, ECOWAS Bank Sign MoU to Finance Important Projects (This Day Live)
The Niger State Government has signed a Memorandum of Understanding (MoU) with the ECOWAS Bank for Investment and Development, to finance four priority projects totaling $114 million in various socio-economic sectors. At the occasion of the ECOWAS Investment Forum (EIF) that took place between April 4 and 5, 2024, in Lome, Togo, the Niger State Government signed the MoU with the ECOWAS Bank for Investment and Development.
The projects to be financed include the construction of the Madalla-Suleja -Maje dual carriage road ($30m), the construction of Madalla Green Economic Market ($11m), the construction/conversion of the former secretariat into School of Medical and Health Sciences(S40 m) and the construction of eight International truck-trailer parks in Makwa, Tapa, Lambatta, Bida, Makera, Dikko, Tagina and Kontagora ($43m).
Platinum-linked green hydrogen set to be world’s ‘new oil’, Forbes article highlights (Engineering News)
There’s no climate solution without hydrogen. It’s the missing piece of the clean energy puzzle, says a global CEO-led initiative that brings together leading companies with a united vision. This initiative has ballooned to 150 multinationals companies from its modest 13-leader 2017 launch at World Economic Forum.
The global Hydrogen Council it has advanced into now represents the entire value chain of hydrogen, which is planet earth’s most abundant element, as well as being renewable and non-polluting. “We need to embrace hydrogen as a global energy solution now more than ever,” is what is being stated by this council, amid hydrogen development taking place left, right and centre across Asia, Europe, the Americas and to a lesser but moderately advancing extent in Africa.
Meanwhile, Forbes magazine’s contributor on energy and climate Ken Silverstein commented that it’s just a matter of green hydrogen getting its legs for it to become the world’s ‘new oil’ that will to replace the non-sustainable energy source that currently drives the global economy.
Gas Resources Will Drive Economic Growth, Industrial Development For Nigeria- Kyari (The Whistler Newspaper)
The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC Ltd.) Mr. Mele Kyari, has reiterated the crucial role of natural gas in fuelling economic growth and industrial development in Nigeria. Kyari, who was speaking at the public presentation of the book “The Rise of Gas: From Gaslink to the Decade of Gas” authored by Engr. Charles A. Osezua, the GCEO highlighted gas’ global acceptance as a crucial energy source that sustains economic growth and drives industrial activities.
The GCEO underscored the significance of prioritizing natural gas production and supply, particularly in the context of geopolitical dynamics and energy security in the global economy. With Nigeria boasting substantial gas reserves exceeding 200 trillion cubic feet (Tcf) and a potential to reach 600 Tcf, the GCEO said it is pertinent Nigeria leverages the gas resource for sustainable development, energy security, and job creation.
WTO forecasts rebound in global trade but warns of downside risks (WTO)
In the latest “Global Trade Outlook and Statistics” report, WTO economists note that inflationary pressures are expected to abate this year, allowing real incomes to grow again — particularly in advanced economies — thus providing a boost to the consumption of manufactured goods. A recovery of demand for tradable goods in 2024 is already evident, with indices of new export orders pointing to improving conditions for trade at the start of the year.
WTO Director-General Ngozi Okonjo-Iweala said: “We are making progress towards global trade recovery, thanks to resilient supply chains and a solid multilateral trading framework — which are vital for improving livelihoods and welfare. It’s imperative that we mitigate risks like geopolitical strife and trade fragmentation to maintain economic growth and stability.”
Transatlantic air cargo market bucks the global trend with a weak start to 2024 (Xeneta)
The Transatlantic air cargo corridor has had a weak start to the year, which is in stark contrast to the global market. This is one of the world’s top three air cargo corridors, but in the first two months of this year demand from Europe to North America was down by 4% compared to the same period in 2023 and 5% lower than 2019 levels. Interestingly, this trend has also been seen within ocean freight shipping on the Transatlantic trade, which saw a 4% year-on-year decline in demand in January.
The global air cargo market paints a different picture, with double-digit year-on-year growth (+11%) in the first two months of 2024 and +3% compared to the same period in 2019. This has been driven by factors such as disruptions in the Red Sea and strong demand for e-commerce out of China.
Airlines to take back control of payment (IATA)
The IATA Financial Settlement Systems (IFSS) continue to perform an essential service for global airlines, facilitating the movement of funds across the air travel value chain while maintaining extremely high levels of efficiency and security.
“As indicated by participants in the IFSS, potential opportunities could bring the value the IFSS offers to these other forms of payment as it does for BSP sales,” says Albakri. “We want to know where we need to move to in the next three-to-five years,” says Muhammad Albakri, IATA’s SVP for Financial Settlement and Distribution Services.
“We want to know where we need to move to in the next three-to-five years,” says Muhammad Albakri, IATA’s SVP for Financial Settlement and Distribution Services. “Where is the value in the IFSS and how should the scope be improved? It must continue to be aligned with airline needs.”
New UN report calls for trillions more in development investment to rescue Sustainable Development Goals (United Nations)
A new UN report today says financing challenges are at the heart of the world’s sustainable development crisis – as staggering debt burdens and sky-high borrowing costs prevent developing countries from responding to the confluence of crises they face. Only a massive surge of financing, and a reform of the international financial architecture can rescue the Sustainable Development Goals.
The 2024 Financing for Sustainable Development Report: Financing for Development at a Crossroads (FSDR 2024) says urgent steps are needed to mobilise financing at scale to close the development financing gap, now estimated at USD 4.2 trillion annually, up from USD 2.5 trillion before the COVID-19 pandemic. Meanwhile, rising geopolitical tensions, climate disasters and a global cost-of-living crisis have hit billions of people, battering progress on healthcare, education, and other development targets.
Related: Massive investment and financial reform needed to rescue SDGs (UN News)
SDG: International cooperation critical for mobilising finances to meet 2030 development agenda (Nairametrics)
Director-General of the World Trade Organization, Dr. Ngozi Okonjo-Iweala has stated that international cooperation will be critical to mobilize the financial resources needed to meet the 2030 agenda for Sustainable Development. She disclosed this in her statement which formed part of the United Nations “2024 Financing for Sustainable Development Report” launched on Tuesday, April 9, 2024. The report says urgent steps are required to close the development financing gap, now estimated at USD 4.2 trillion annually.
“As the global community gears up for the fourth international conference on financing for development in 2025, the WTO envisions a transformative event that mobilizes financial resources at speed and scale and leverages the full spectrum of complementary policy tools to deliver sustainable economic growth and development for people around the world.
“With only five years to reach the Sustainable Development Goals, anticipation surrounding the conference is palpable, particularly in light of the setback dealt to the pursuit of the SDGs by the COVID-19 pandemic and the wider poly crisis of international conflict, environmental strains, debt distress, and other challenges to future growth and stability.
World’s biggest economies pumping billions into fossil fuels in poor nations (The Guardian)
The world’s biggest economies have continued to finance the expansion of fossil fuels in poor countries to the tune of billions of dollars, despite their commitments on the climate. The G20 group of developed and developing economies, and the multilateral development banks they fund, put $142bn (£112bn) into fossil fuel developments overseas from 2020 to 2022, according to estimates compiled by the campaigning groups Oil Change International (OCI) and Friends of the Earth US.
The G7 group of biggest economies, to which Japan and Canada belong, pledged in 2022 to halt overseas funding of fossil fuels. But while funding for coal has rapidly diminished, finance for oil and gas projects has continued at a strong pace. Some of the money is going to other developed economies, including Australia, but much of it is to the developing world. However, richer middle income countries still receive more finance than the poorest.
Global Warming Will ‘Decimate’ G20 Economies Without Unity: UN Climate Head (Barron’s)
UN climate chief Simon Stiell on Wednesday urged G20 nations to unite in tackling global warming, saying that allowing geopolitical divisions to sideline this common threat would “decimate” their economies. “Sidelining climate isn’t a solution to a crisis that will decimate every G20 economy and has already started to hurt,” Stiell said as he pressed for a new finance deal to help developing countries respond to global warming.
World Must Prioritize Productivity Reforms to Revive Medium-Term Growth (IMF)
The world economy faces a sobering reality. The global growth rate—stripped of cyclical ups and downs—has slowed steadily since the 2008-09 global financial crisis. Without policy intervention and leveraging emerging technologies, the stronger growth rates of the past are unlikely to return.
Faced with several headwinds, future growth prospects have also soured. Global growth will slow to just above 3 percent by 2029, according to five-year ahead projections in our latest World Economic Outlook. Our analysis shows that growth could drop by about a percentage point below the pre-pandemic (2000-19) average by the end of the decade. This threatens to reverse improvements to living standards, and the unevenness of the slowdown between richer and poorer nations could limit the prospects for global income convergence.
However, our latest analysis shows that there’s hope. A variety of policies—from improving labor and capital allocation across firms to tackling labor shortages caused by aging populations in major economies—could collectively rekindle medium-term growth.
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WTO members review six regional trade agreements (WTO)
‘Success of India’s G20 Presidency Makes Voice of Global South Stronger’: Brazilian Envoy (ETV Bharat News)
CO2 Watchdog Approves Carbon Credits for Value Chain Emissions (BNN Bloomberg)
Banks must adapt to survive as commodity finance demand slumps (Global Trade Review)
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2024-2029 Development priorities for Zambia: Infrastructure and Agricultural Value Chain (AfDB)
The Board of Directors of the African Development Bank Group has approved the Country Strategy Paper (CSP) for Zambia for 2024-2029, which sets out two priority intervention areas: Boosting the development of the private sector through investments in infrastructure and developing the country’s agricultural value chain.
“The aim of this new CSP is to support Zambia’s vision of speeding up its socioeconomic transformation to improve livelihoods,” comments Raubil Durowoju, head of the Bank Group’s Country Office in Zambia. “The first area emphasizes infrastructure development with the aim of increasing productivity, strengthening commercial competitiveness, diversifying the economy, and improving people’s lives. The second supports value addition and job creation and is targeted at women and young people,” he adds.
‘Uganda has enough stocks to support drought-hit States in Southern Africa’ (COMESA)
Drought hit COMESA Member States in southern African region can benefit from Uganda’s bumper harvest, says Gen. Fred Mwesigye, the country’s newly accredited Permanent Representative to COMESA. Gen. Mwesigye (Rtd) who is Uganda’s High Commissioner to Zambia was speaking at the COMESA Headquarters in Lusaka, Thursday 4 April 2024, when he presented his letter of credence to COMESA Secretary General, Chileshe Kapwepwe.
He noted the devastating effects of climate change in the Southern part of the continent, and stated that Uganda had a surplus of maize and other crops available to assist COMESA Member States affected by the drought.
Ethiopia set to join EAC, CS Malonza says (KBC)
Ethiopia is set to become the 9th member state of East Africa Community (EAC), just a few months after Somali’s admission to the bloc. This was disclosed by Peninah Malonza, the Cabinet Secretary for Ministry of EAC, Arid and Semi-arid Lands and Regional Development. Speaking while leading a relief food distribution drive in Kitui Central Constituency, Malonza announced that talks between Ethiopia and EAC Summit Heads of states are in the last stages and soon Ethiopia will be part of the bloc.
Kenya-Guinea Bissau Revamping Trade Ties (Vantures Africa)
Kenya and Guinea-Bissau are implementing far-reaching policies that will boost trade between the two countries. President William Ruto said while the current trade volume between the two countries is low, there is potential for improvement. He cited the African Continental Free Trade Area Agreement that is poised to enhance commerce.
President Ruto said Kenya and Guinea-Bissau are keen on implementing the Memorandum of Understanding that established a Joint Commission for Cooperation (JCC) signed in 2022. He explained that enhanced collaboration between the private sectors of both nations will significantly boost trade volumes. He made the remarks on Friday during a press briefing following bilateral talks with his Guinea-Bissau counterpart President General Umaro Sissoco Embalo.
Nigeria To Get $1.05bn Oil-backed Afreximbank Loan Balance In May (Leadership News)
Nigeria will in May, receive a $1.05 billion loan from the African Export-Import Bank (Afreximbank), being part of a $3.3 billion prepayment facility arranged by the Nigerian National Petroleum Company Limited (NNPCL), Bloomberg reports. The funds will be repaid using crude cargoes from the NNPCL. Recall that two-thirds of the largest syndicated loan raised by Africa’s biggest oil producer was disbursed in January.
Nigeria Sets Sights On Sustainable Blue Economy Development With AU Support (Arise News)
The federal government in collaboration with the African Union (AU) through the African Union – Interafrican Bureau for Animal Resources (AU-IBAR) is set to develop a national Blue Economy Strategy for Nigeria. This was revealed by the Minister Of Marine and Blue Economy, Adegboyega Oyetola at a stakeholders consultative workshop to define priority issues for development of National Blue Economy Strategy for Nigeria in Abuja on Monday.
Speaking at the event, Oyetola hinted that considering the huge potential of the national marine resources, the institutionalisation of the expanded partnership committee on sustainable blue economy in Nigeria was approved with the view to develop a strategic plan for the national blue economy. This, he revealed, was what has eventually resulted in the creation of the Ministry of Marine and Blue Economy.
African Economies Projected to Grow by 3.4 % in 2024, But Faster and More Equitable Growth Needed to Reduce Poverty (World Bank)
Increased private consumption and declining inflation are supporting an economic rebound in Sub-Saharan Africa. However, the recovery remains fragile due to uncertain global economic conditions, growing debt service obligations, frequent natural disasters, and escalating conflict and violence, according to the World Bank’s latest Africa’s Pulse report. Transformative policies are needed to address deep-rooted inequality to sustain long-term growth and effectively reduce poverty.
The report highlights that external resources to meet gross financing needs of African governments are shrinking and those available are costlier than they were prior to the pandemic. Political instability and geopolitical tensions weigh on economic activity and may constrain access to food for an estimated 105 million people at risk of food insecurity due to conflict and climate shocks. African governments’ fiscal positions remain vulnerable to global economic disruptions, necessitating policy actions to build buffers to prevent or cope with future shocks.
“Inequality in Africa is largely due to the circumstances in which a child is born and accentuated later in life by obstacles to participating productively in markets and regressive fiscal policies,” said Gabriela Inchauste co-author of a forthcoming World Bank report on tackling inequality in Sub-Saharan Africa. “Identifying and better addressing these structural constraints across the economy offers a road map for a more prosperous future.”
Africa’s Pulse calls for several policy actions to foster stronger and more equitable growth. These include restoring macro-economic stability, promoting inter-generational mobility, supporting market access, and ensuring that fiscal policies do not overburden the poor.
Africa must improve trade to resolve challenges – WTO (Graphic)
The World Trade Organisation (WTO) has urged African countries to implement policies that will enable the continent to derive maximum benefit from global trade. The Head of Commodities and Agriculture at the WTO, Dr Edwini Kessie, said increased trade and effective trade policies were key in helping to resolve the myriad of challenges faced by the continent.
Dr Kessie said one of the ways leaders and policy makers on the continent could tackle some of the challenges was by placing emphasis on trade, which he stressed had become the catalyst for economic growth, reducing poverty and creating jobs and opportunities for billions of people. Trade, he said, had added more value to economies and made them more productive due to increased competition and specialisation. He said Africa had been a beneficiary of trade but stressed that more needed to be done for the continent to derive more benefits from global trade.
Last Frontier To Unlock Africa’s E-Commerce Potential (CIO Africa)
Last month was six years since the grand dream to create a single African market for 1.2 billion people plus took a concrete step and therefore now is a good time to reflect on how far we have come and what we need to do to achieve this goal. March 21 was the sixth anniversary since the establishment of the African Continental Free Trade Area (AfCFTA) and there have been many gains made that are catalyzing efforts to achieve the goal of a seamless continental market.
One area that has the potential to create a borderless and efficient market as envisioned by AfCFTA is Africa’s e-commerce space which Statista estimated hit the $40 billion-mark last year, this is still small in comparison to other markets but is still commendable considering that the market was worth an estimated $29 billion in 2022. Translated this is a 38 per cent increase.
For successful e-commerce to happen there must be massive investments in three critical areas. First, a good, affordable, and reliable internet network must be available. Consumers, in turn, need to access these services by possessing internet devices and affording internet plans. Second, there must be a reliable and efficient payment system. Buyers and sellers must be able to freely and efficiently trade, including having internet-enabled devices that can allow for reversal of transactions. Third, physical infrastructure must be in place i.e. good roads and of course, a physical address system or distribution points must be in place to ensure goods delivered can easily be accessed.
Linking a borderless Africa: Leveraging AfCFTA’s potential to drive business and economic growth (The Business & Financial Times)
Successful economies, societies and regions have long opted for cooperation, consolidation and integration against division, separation and isolation. The ‘roads’ to sustainable economic development and prosperity are long with many stops, even some dead ends and yet seldom has a society reached this destination without bringing its neighbours along for the journey. The African Continental Free Trade Area (AfCFTA) is a momentous milestone in the modern history of our continent. It’s a recipe for catalysing our centrality and bridging the chasms that separate us.
AfCFTA can solve the crippling impacts of dysfunctional supply chains that bleed our businesses and consumers. We’ve all heard of the three-week truck journeys for goods moving a mere 1000 kilometers from our ports to various cities – journeys that take 1-2 days elsewhere. In today’s interconnected global economy, trade is the lifeblood of prosperity. It facilitates economic growth, fosters innovation, and creates opportunities for nations to prosper.
Ministry Striving to Create Resilient Food Processing Ecosystem, Strengthen Industry (ENA)
Various policies and strategies that strengthen the food processing industry have been developed and efforts exerted to create a more resilient food processing ecosystem, according to Ministry of Industry. A forum on “Sustainable Business Growth and Improved Resilience in a Supportive Food Processing Ecosystem” forum was held in Addis Ababa.
Ministry of Industry representative Dugassa Dunfa said on the occasion that supporting the food processing industries in technological, business, and market systems so that they can manufacture and distribute safe and nutritious food is pivotal in tackling the country’s food security crisis. Currently, there are over 1,600 food processors, including medium and large industries, which play a vital role in safe food production, distribution, job creation, and import substitution.
Preparations gear up for the 10th Africa Regional Forum on Sustainable Development in Addis Ababa (UNECA)
The 10th Session of the Africa Regional Forum on Sustainable Development (ARFSD-10) will be held in hybrid format on 23-25 April 2024 at the headquarters of the African Union Commission (AUC) in Addis Ababa, Ethiopia. The theme of the forum is “Reinforcing the 2030 Agenda for Sustainable Development and Agenda 2063 and eradicating poverty in times of multiple crises: effective delivery of sustainable, resilient and innovative solutions.”
“ARFSD-10 is a timely opportunity to address shortcomings and capitalize on emerging opportunities to ensure robust, accelerated and timely implementation of the SDGs and Agenda 2063. In addition, participants will play a key role in mobilizing Africa’s inputs for the Summit of the Future to be held in September 2024,” he adds.
Eastern Africa Set for Digital Leap with World Bank Investment and Regional Financial Hubs (Techweez)
The African Development Bank’s 2023 East Africa Economic Outlook forecasts that growth in the region will surpass 5%. Hence, the region is positioned to enjoy strong economic performance this year, despite global economic headwinds and regional challenges. This positive outlook is a combination of a number of factors, among them, geography. East Arica, is a critical gateway to international trade, in close proximity to the Middle East, Red Sea, and Asia.
This geostrategic advantage has recently been amplified by the World Bank’s significant backing of a groundbreaking initiative to create a unified single digital market across the region. The $130 million project, dubbed the Eastern Africa Regional Digital Integration Project – II (EARDIP-SOP-2) is taking an innovation-first approach with potential for revolutionary yield.
Revolutionary payment system overhaul propels progress towards a digital economy (Capital Newspaper)
Ethiopia is taking significant strides in transforming its payment landscape by integrating a comprehensive digital payment system. This strategic shift aims at fostering a more inclusive and efficient economic growth, marking a pivotal moment in the country’s journey towards a digital economy.
Solomon Damtew, the Director of the Payment and Settlement Systems Directorate at the National Bank of Ethiopia (NBE), emphasized the critical nature of this transition. “The adoption of digital payment systems is not a luxury but a fundamental necessity,” Solomon stated, underscoring the efforts to create a conducive environment for digital transactions across Ethiopia.
In a bid to standardize financial transactions, Ethiopia has introduced a QR Code Standard. This initiative addresses the previously fragmented QR Code payments, ensuring uniformity and interoperability among different financial service providers. The standardized QR Code is designed to streamline and secure digital transactions, making it easier for businesses and consumers alike to embrace the digital payment landscape.
Digitalization a great enabler to achieve sustainable goals (Malawi Nyasa Times)
Malawi Communications Regulatory Authority, (MACRA) says Malawi as one of the land locked and least developed countries requires digitalization as its great enabler in order to achieve it’s sustainable development goals by the year 2030.
MACRA director general Daudi Suleman lamented that Malawi is currently in a situation whereby alot of people are not connected to the internet as the country is sitting at 34.6 percent of Malawians who are connected to the internet in the population of 20 million people and that 73 percent of Malawian has the potential to connect to the internet that can also help to unlock new opportunities and the economy of this country.
He was saying this at the opening of a two-day International Telecommunications Union, (ITU) regional workshop on cost models for data services and international internet connectivity where his organization is hosting.
Harmonization of policies to accelerate ICT investments in Africa (KBC)
Information, Communication and Digital Economy Cabinet Secretary for Eliud Owalo has attributed low investments in Africa’s ICT sector to outdated laws. According to Owalo, harmonization of better ICT policies in the continent are key to attracting the much needed investments to allow rapid growth in the sector. He singled out policies such as the now repealed 30pc local shareholding rule for foreign companies to invest in Kenya’s ICT sector as a hindrance to foreign direct investment.
“In Kenya, for example, we have managed to waive the 30pc local content requirements that necessitated that ICT companies must have 30pc local ownership. What is the purpose of having a law that impedes foreign direct capital investment? That is the direction that we need to go as Africa, making sure that there is foreign direct capital investment while at the same time also protecting our own local interests as Africa,” said Owalo. This comes as Kenya targets to increase increase investments to expand ICT infrastructure to support the digital economy.
How maritime trade disruptions are hurting global food security (Devex)
Northern Ethiopia currently faces a severe food shortage. A drought has stricken the region, disrupting livelihoods, crops, and livestock. High food prices, which began during the COVID-19 pandemic, have reduced everyday purchasing power. Meanwhile, armed conflict between the Ethiopian National Defense Force and militia groups is hindering the delivery of aid. The situation has compelled USAID to write that Ethiopia faces a crisis “or worse” levels of food insecurity.
But another compounding factor exists more than 1,500 miles away: Russia’s full-scale invasion of Ukraine. Prior to the war, Ethiopia imported 301,000 tons of wheat from Ukraine, according to the International Food Policy Research Institute. While Ukrainian wheat is not a majority of Ethiopia’s food source, the disruption of shipping routes on the Black Sea, coupled with other constraints, makes a fragile situation even more perilous.
“Today there are three routes that are of concern,” said Maximo Torero, chief economist of the Food and Agriculture Organization in a recent interview. “Of course, the Black Sea… the second one is the Red Sea, and the third one is the Panama [Canal].”
Enhancing Global Trade: Strategies for Sustainable Growth (Global Trade Magazine)
Global trade serves as the lifeblood of the world economy, fostering economic development, creating job opportunities, and driving innovation. By embracing technological innovations, strengthening multilateralism, fostering inclusive trade policies, promoting sustainability, investing in infrastructure, enhancing trade facilitation, facilitating trade finance accessibility, and harnessing regional integration, nations can collectively advance towards a more prosperous and sustainable global trading system.
Sustainability has to be the anchor for development in 21st century: UNGA President Dennis Francis (Deccan Herald)
UN General Assembly President Dennis Francis has said that there is no conflict between promoting sustainability and economic growth and development, underscoring that sustainability has to be the anchor for development in the 21st century. Francis will convene the UN’s first-ever ‘Sustainability Week’ April 15-19 under the theme ‘Paving the Way for a Sustainable Future’ at the world body’s headquarters here. The week will feature dedicated events focused on sustainability in critical sectors such as tourism, infrastructure connectivity, transport, energy and debt.
“The reality is that sustainability has to be the anchor for development in the 21st century. Since we are talking about prioritizing people and the planet, the sustainability dimension of things lies at the very heart of everything we are seeking to do developmentally in the UN,” Francis, President of the 78th session of the UN General Assembly, told PTI in an exclusive interview here.
“We have identified five key areas or economic sectors that we think have extraordinary potential for really transformative change.… and we know these five sectors have a great impact on sustainability. They are tourism, transportation, infrastructure, energy and debt” sustainability,” Francis said.
Decarbonisation Policies Lag in Major Economies: BloombergNEF Report (edie)
New research has revealed that the world’s 20 biggest economies have made little headway in improving their decarbonisation policies over the past year, raising concerns about whether the global Paris Agreement on climate will be achieved.
This is according to BloombergNEF’s fourth annual edition of the G20 Zero-Carbon Policy Scoreboard, ranking countries on the basis on their decarbonisation progress. Each nation was evaluated on a scale of 0 to 100%, with factors considered including the extent of government support allocated for reducing greenhouse gas (GHG) emissions, the effectiveness and strength of these initiatives and the policy implementation process. Additionally, metrics were used to assess the impact of these policies in initiating tangible changes at the grassroots level.
According to the scoreboard, the EU, the UK and the US have maintained their positions as global leaders in decarbonisation efforts. However, despite retaining the top spots, these countries have failed to significantly improve their performance from the previous year. On average, there has been a slight decline of 1% point among the top scorers.
New data shows majority of companies are overlooking plastic-related risks (Climate Action)
The data reveals, for the first time, the extent of companies’ awareness of their contribution to the plastic crisis, and presents a strong baseline for accelerating action at the fourth round of Global Plastics Treaty negotiations (INC-4) later this month, where mandatory corporate disclosure is on the table. Governments can accelerate this by including mandatory corporate disclosure on plastics in the Global Plastics Treaty being negotiated in Ottawa later this month.
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AfCFTA-focused Afro-Italian relations deepened with Italian President Mattarella’s visit to Ghana (3news)
How Vulnerable is Sub-Saharan Africa to Geoeconomic Fragmentation? (IMF)
Bridging Africa’s Trade Finance Gap: Trade and Development Bank to Speak at IAE 2024 (Energy Capital & Power)
Indian trade charm offensive targets East Africa (APAnews)
BRICS: 2 New Countries Express Interest To Join the Alliance (Watcher Guru)
This Is Going to Hurt: Weather Anomalies, Supply Chain Pressures and Inflation (IMF)
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Role of gas in SA’s future energy mix comes under intense scrutiny (Engineering News)
Given South Africa’s ongoing energy crisis, there remains much debate around whether gas should be included in the future energy mix and, if so, how much. Advocates argue that the fossil fuel is a necessity and a step up from coal – since it produces fewer carbon emissions when burned – but many still oppose its large-scale incorporation into, owing to the global shift towards clean energy technologies such as renewables, battery storage, green hydrogen and even nuclear.
Government heavily supports gas in the electricity sector and is belatedly working with industrial stakeholders to avert a “gas cliff” later in this decade, which will arise from a tapering of supply from Mozambique and Sasol diverting the balance to its own facilities as part of its own decarbonisation efforts.
South Africa builds new roadmap to revitalize entrepreneurship (UNCTAD)
South Africa has more than 2 million micro, small and medium-sized enterprises, representing over 98% of formal businesses, according to UNCTAD’s entrepreneurship strategy review for the country. Despite their sheer prevalence, these small businesses create less than a third of all formal jobs, leaving job creation highly concentrated in a few large corporations and government entities.
The survival rate of the businesses is also low, with two thirds failing within the first five years and about 20% in the first two years. Combined with a high level of youth unemployment and around 70% of entrepreneurs operating in the informal sector, South Africa’s entrepreneurial potential remains well below international trends. To boost entrepreneurship, the country’s Department of Small Business Development (DSBD) is developing a national entrepreneurship strategy to create an enabling environment for entrepreneurs, small businesses and start-ups to flourish.
Angola bets on small businesses to help transform its economy (UNCTAD)
Developing a national entrepreneurship strategy in Angola is high on the political agenda and aligned with the country’s 2050 strategy, focused on economic diversification and growth, among other priorities. It’s also part of the government’s 2023-2027 National Development Plan, which includes strengthening the business environment, fostering entrepreneurship and positioning the private sector as the main driver of economic development.
To lay the building blocks of the national entrepreneurship strategy, UNCTAD has supported the country’s National Institute of Support to Micro-, Small and Medium-Sized Enterprises (INAPEM) to design a national entrepreneurship review, with an action plan. “We want to diversify the economy and make it more competitive on the international market,” says Amadeu de Jesus Leitão Nunes, Angola’s Secretary of State for Commerce. “For this to happen, we are developing a stronger framework that will encourage entrepreneurship, drive innovation and facilitate access to funding,” he added.
Zimbabwe launches gold-backed currency to replace battered local dollar (Reuters)
Zimbabwe is replacing its collapsing local currency with a new one backed by gold and foreign currencies that it hopes will be more stable and help bring down inflation, the central bank said on Friday. The Southern African country relaunched its own currency in 2019 after a decade of dollarisation, but it struggled to win public trust and more than 80% of domestic transactions are now conducted in foreign currency. The new currency – called Zimbabwe Gold (ZiG) – will circulate alongside foreign currencies, central bank governor John Mushayavanhu told a press conference in the capital Harare.
Kenya expects three new cranes to lift Lamu Port (The East African)
The Kenya Ports Authority (KPA) is expecting delivery of three cranes this weekend to support the Lamu Port. The authority says Ethiopia and South Sudan have expressed interest in using the port. “We are set to receive the first three ship-to-shore gantry cranes this Sunday, along with a substantial consignment of bulk cargo,” said KPA Managing Director Capt William Ruto. He was speaking during the donation of Ramadan food items to members of the Muslim community in Mombasa, Kwale, and Lamu counties.
Lack of standards hindering SMEs from tapping into continental free trade area (Nile Post)
Ugandan medium- and small-sized enterprises (SMEs) have been urged to embark on quality standards and enough production to get into the African Continent Free Trade Area (AFCFTA). Entrepreneurs stand to gain by adhering to standards, it improves the quality of products and services which, in turn, facilitates market access not only in the East African Region but also on the continent
“Standards have been a barrier to AFCFTA market, it’s important for SMEs to know and maintain them as well as embarking on production to get into the AFCFTA market,” Prof Charles Kwesiga, executive director of Uganda Industrial Research Institute said. “Three things should be done as well,” Kwesiga said. “Firstly, enhancing technology use, secondly, affordable finance mechanism, and thirdly, human capital.”
China invites Uganda’s energy minister for talks on pipeline financing (Reuters)
China has invited Uganda’s energy minister to Beijing to discuss the East African country’s $5 billion crude oil pipeline, Uganda's presidency said on Friday. The development could signal a possible breakthrough in Uganda’s efforts to woo Chinese financiers to fund the pipeline, which the country requires to start crude production from oilfields that were discovered in 2006. Potential Chinese funding is being considered as pivotal after Western banks declined to fund the pipeline after pressure from environmentalists who said the project would add to global carbon emissions.
Ghana, Kenya lead Africa’s economic renaissance (Ghana News Agency)
Two of Africa’s emerging economies – Ghana and Kenya – have taken giant steps to consolidate trade relations as they seek to lead Africa’s economic renaissance. The bilateral trade cooperation, initiated at the instance of Ghana’s President Nana Addo Dankwa Akufo-Addo, is being worked out within the purview and objectives of the African Continental Free Trade Area (AfCFTA) Agreement.
“What is being done in this room today is critical for our continent and the future prosperity of our people,” the President said, as he was joined by visiting Kenyan President William Ruto to witness the signing of multiple pacts between the two countries, at a ceremony in Accra. The Memoranda of Understanding were initialed by the Ghana Investment Promotion Centre and the Kenyan Investment Authority, the Association of Ghana Industries and the Kenya Association of Manufacturers.
Reopened Nigeria-Niger border promises trade growth (DW)
Trade between Nigeria and neighboring Niger has bounced back since the West African bloc ECOWAS lifted sanctions on Niger. The Economic Community of West African States imposed the measures following the July 26, 2023, military coup that ousted Mohamed Bazoum, Niger’s democratically elected leader. The measures failed to achieve their aims, and the border closure devastated local communities on both sides of the frontier with hundreds of millions of dollars worth of trade lost.
“The relationship has spanned centuries, so immediately after the imposition of the sanctions, there were cries everywhere. Local farmers suffered greatly,” said Tukur Abdulkadir, professor of international relations at northern Nigeria’s Kaduna State University. But in recent weeks, a semblance of normality has returned to the Jibiya-Maradi border area. Businesspeople can move freely between the neighboring nations.
Before ECOWAS withdrew the sanctions, people living in border communities were cut off from all traditional trading and socio-economic activities. In 2022, data from the International Trade Centre (ITC) showed that cross-border trade between Nigeria and Niger was worth roughly $226 million ($209 million).
Niger, Mali, Burkina Faso’s withdrawal will cost ECOWAS US$1 billion, says president of ECOWAS Commission (Asaase Radio)
The president of ECOWAS Commission, Omar Touray, has warned that the withdrawal of Niger, Mali and Burkina Faso from the bloc puts ECOWAS’ investments worth nearly US$1 billion at risk. In January 2024, the three countries announced their withdrawal from the ECOWAS, citing “illegal sanctions” attracted by an unconstitutional change of government.
But Touray, speaking at the inauguration of the sixth ECOWAS Parliament held at the International Conference Centre, Abuja, on Thursday, warned that “On the economic and financial front, the withdrawal of the three states could result in default or suspension of all ECOWAS projects and programmess in these countries, worth more than US$500 million.
“It should be noted that…the ECOWAS Bank for Investment and Development currently has 27 ongoing public sector projects in the three countries valued at approximately US$321.6 million. “38% of this is in the form of investment in the public sector, while 61% is constituted by investment in the private sector.”
There’s a lot of container diversion to Lome (GhanaWeb)
A lot of containers are being diverted to Lome because Ghana’s port duties are higher, Vice President Mahamudu Bawumia has complained. At a town hall meeting with the pharmaceutical industry where he promised to enhance the business-friendliness of ports by implementing fixed exchange rates aimed at alleviating forex pressure faced by traders, the flagbearer of the governing New Patriotic Party promised that his government, should he win the December election, is “going to make sure that our duties in ports, by policy, cannot be higher than in Lome, which is our competitor.”
“And right now, there’s a lot of diversion of containers to Lome because ours are higher”, he observed. Dr Bawumia also vowed that he is “going to change the duty structure and go into more of a flat specific duty”. He explained: “If you have a 40-footer container, you know how much you are paying in cedis... So, you take the exchange rate out of the matter and deal with it”, he added. At the meeting, the President of the Pharmaceutical Society of Ghana, Dr. Kow Donkor said it was imperative their concerns were addressed to safeguard the industry.
Lomé hosts first edition of ECOWAS Investment Forum (Togo First)
The first ECOWAS Investment Forum began today, April 4th, in Lomé. The two-day event gathered over 400 key stakeholders of development, investment, and governance in West Africa. Together, they will discuss major issues the region faces. These include food security, developing sustainable infrastructure, and leveraging the green economy to tackle youth unemployment.
George Agyekum Donkor, President of the ECOWAS Bank for Investment and Development (EBID), noted that the forum aims to bolster regional cooperation and foster innovative solutions to the various bottlenecks that hamper the region’s growth. Through the forum, the EBID seeks to secure investments for large ECOWAS projects. The Lomé-based Bank has a clear goal: Bridging an investment deficit estimated at $12 billion per year, vital to support the economic development across all 15 ECOWAS member States. The EBID, it is worth noting, has disbursed $3.69 billion since the end of 2022 to support these countries.
AfCFTA to mobilize $10 billion to support SMEs (Citinewsroom)
The African Continental Free Trade Area (AfCFTA) Secretariat has announced its commitment to mobilize $10 billion to bolster the development of small and medium-scale enterprises led by youth across Africa. The AfCFTA revealed that it has already allocated $150 million to support the burgeoning businesses of young entrepreneurs in Africa. Additionally, it aims to augment its funding resources through partnerships with institutions such as the United Bank of Africa and the Africa Exim Bank.
Delivering his address at a ceremony to welcome the President of Kenya, H.E. Dr. William Ruto to the AfCFTA Secretariat, the Secretary General of AfCFTA Secretariat, Wamkele Mene emphasized the role of the secretariat in promoting youth-led businesses in Africa. “We’re signing an MOU with United Bank of Africa, where they are committed to disburse 7 billion dollars to SMEs that are led by young people. It has been reported to us that already 150 million dollars under this fund has been disbursed. We will mobilize up to 10 billion dollars to ensure in the implementation of AfCTA, young people are at the centre to benefit.”
TDB launches a $100 million facility for agricultural growth in Africa (Techpoint Africa)
Over the years, the Trade and Development Bank has financed trade, fostered sustainable growth, and promoted regional integration in Africa through trade finance, advisory services, asset management, and project and infrastructure finance. In March 2024, TDB extended a three-year $2 million term loan to MPower Ventures Zambia Limited via the Trade and Development Fund (TDF) to improve Zambian access to modern and affordable energy solutions. The BII funding will allow it to provide additional financial assistance to local businesses and financial institutions operating in key African markets.
Andrew Mitchell, UK Minister of State for Development and Africa, stated that this investment reflects the UK Government’s commitment to boosting economic and agricultural growth in Africa, and that it will lower trade barriers, assist businesses in accessing resources, expanding, and addressing food security concerns.
Africa’s trade volume to shrink, higher inflation rate seen on Red Sea attacks (Businessday Nigeria)
Africa’s trade volume is projected to shrink in the first half of 2024 as Iran-backed militants continue to disrupt trade flows on the Red Sea route – the world’s main trade route to most container ships, a new report says. The report compiled by Afreximbank on the implication of the Red Sea attacks on African trade and macroeconomic stability also said that African countries face the risk of accelerating inflation following the attacks on ships using the vital trade route.
“The ongoing attacks in the Red Sea have produced distortions to African trade and may have deeper implications for the region’s macroeconomic stability in the short to medium term,” the report said. “On African trade, the crisis has given rise to a reallocation of resources among countries on the continent, depending on what side of the pendulum they sit,” it added. According to the report, the disruption in the worldwide supply chain, coupled with rising prices for food and energy, might compel local manufacturers to divest from the region if production costs exceed those of their rivals in other continents.
In the face of poorly regulated Ukrainian sugar imports, Africa, Caribbean, Pacific (ACP) and Least Developed Countries (LDCs) sugar suppliers demanded policy coherence for development from the EU and UK authorities and an end to preference erosion. The agreement of the European Council presidency and of the European Parliament of 20 March 2024 – likely to be ratified by the European Union in the next few days – to permit up to ≈ 459,320 tonnes of sugar from Ukraine, duty free and inadequately regulated, into the European Union sugar markets in 2024 and until 5 June 2025 will – as the trade data shows has already happened from June 2022 to date – displace an equivalent quantity of preferential sugar exports to the EU originating in ACP and LDCs.
The ACP-LDC Sugar Industries Group, representing the ACP and LDC sugar industries supplying the EU and UK markets, has therefore requested the EU authorities to support the transit of Ukraine’s sugar exports through the EU to its traditional markets in north Africa and the Mediterranean, supported by subsidies as may be required. They urged to limit Ukrainian sugar imports into the EU in accordance with the EU’s international commitments, particularly to developing country sugar sectors. Such limitation could be achieved by taking a benchmark average of Ukrainian imports in 2021, 2022 and 2023. And Ukrainian sugar trade to and through the EU must be carefully monitored via a suitable licensing system with safeguards being swiftly applied.
Opportunity To Enhance U.S.-East African Trade Relations (Africa.com)
Like the rest of the world, African economies are today faced with economic headwinds. This has elevated the need to enhance trade and investment with key partners, such as the U.S., as long-term partner for the continent to weather such crises, catalyze economic growth and safeguard livelihoods.
According to the United Nations’ World Economic Situation and Prospects report, economic growth in Africa weakened to 3.3 percent in 2023. This was attributed to the global economic slowdown, subdued investment and falling exports. However, there is great optimism over the East African region’s prospects. The African Development Bank projects that the region’s growth will stand at 5.1 per cent in 2024 and 5.7 per cent in 2025, ahead of the rest of the continent. A significant proportion of this is expected to be driven by trade and investment activity, hence the need to optimize flows as an antidote to the current slump but also a pathway for long-term sustainable and inclusive growth.
US manufacturing subsidies for Africa could help revive AGOA (African Business)
The US should pay ‘negative tariffs’ in Africa – essentially targeted manufacturing subsidies – to help revive its faltering African Growth and Opportunity Act (AGOA), according to a new report from the Washington-based Center for Global Development (CGD). CGD’s Justin Sandefur and Arvind Subramanian estimate that $291m in negative tariffs – which they describe as “a drop in the bucket compared to aid levels” could create $1.5bn in new trade and would fit with US “friend-shoring” efforts – the act of manufacturing and sourcing from countries that are geopolitical allies.
Despite an initial “fast and furious” impact within five year’s of AGOA’s passage – in which African garment exports to the US grew by 150% and new factories were opened in Kenya, Lesotho, and Mauritius – the benefits of the AGOA soon fizzled out. By 2010, garments exports were almost back at their 2000 level, the result, the authors say, of Chinese competition flooding the market when “arcane” global textile treaties expired in 2005. The authors say that their proposal for negative tariffs could kickstart the flagging scheme.
See Renewing AGOA “As Is” Won’t Do Much for Africa’s Exports. Here’s What Could (Center For Global Development)
Regional analysis of Liner Shipping Connectivity: What does the revised LSCI reveal? (UNCTAD)
Measuring trends in maritime markets is a dynamic process, as markets change over time. Regarding liner shipping trends, UNCTAD revised its well-established Liner Shipping Connectivity Index (LSCI) in mid-March 2024, adjusting the impact of vessel size on the final index measurements.
Compared with five years ago (2019), the scale of increase in four of the five best-connected countries in sub-Saharan Africa has been impressive. The five best-connected countries in sub-Saharan Africa are South Africa (49th best-connected in the world), Ghana (52nd), Nigeria (which in the last year emerged from the 62nd best-connected country worldwide to 54th), Côte d’Ivoire (55th) and Togo (56th). Liberia, Comoros, Mayotte, Sierra Leone, and Guinea top the percentage growth list, followed by Nigeria and Eritrea. Conversely, the LSCI was lower in 12 Sub-Saharan African countries. Major declines were observed in Djibouti, Gambia, and Namibia.
See also International Conference on Maritime Transport Challenges, Governance and Innovation in Ports
Room for rules-based global trade remains, but WTO showing signs of geopolitical tension (Engineering News)
Over the past five years, geopolitics has cast a shadow over how the world trade system functions, leading to a state of inertia within the World Trade Organisation (WTO) and its dispute resolution mechanisms. The global trade rulebook was outdated and new challenges needed to be addressed, said German Institute of Development and Sustainability deputy director Dr Axel Berger, including digitalisation, environmental, pollution and climate change issues. The multilateral approach was no longer fit for purpose for all issues.
"However, there are also high points, with many ascensions to the WTO, which is an indicator that countries still see value in the WTO. About four-fifths of global trade is through the WTO system, and it has had some notable achievements in agreements on trade facilitation in the recent past," South Africa’s ambassador to the WTO Dr Mzukisi Qobo added.
Quick links
BRICS as a platform for economic sustainability
Cost Of Cross Border Trade Can Be Mitigated By Going Paperless
FAO Food Price Index rises in March
2024 Regional Human Development Report: A Complex Landscape of Progress and Challenges
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TPT outlines actions to support 15% growth in citrus exports during 2024 season (Engineering News)
Transnet Port Terminals (TPT) reports that it has recruited 200 additional cargo coordinators and has set up dedicated lanes for refrigerated containers at all KwaZulu-Natal container terminals in preparation for the citrus fruit export season, which begins this month.
Congestion at the country’s ports has been a drag on the sector’s export performance in recent years, with the Citrus Growers’ Association of Southern Africa (CGA) indicating that the 165.1-million 15-kg cartons packed for delivery to global markets in 2023 was below expectations, despite being 800 000 cartons up on the previous year.
Given prospects of a good harvest, TPT is preparing for an overall 15% increase in export volumes this year, with the CGA having already forecast increases for the export of lemons, Navel oranges, Valencia oranges, grapefruits, satsuma, Clementines and Novas.
Uganda to launch first domestic tin processing plant next month (The East African)
Uganda will commission its first tin refining plant in the southwestern region next month, a senior Mining Ministry official said, as part of efforts to expand capacity and add value domestically to its minerals.
President Yoweri Museveni wants to maximise the benefits of exports to the country, where several gold refineries are operating, and Chinese-backed Sunbird Resources was recently licensed to mine limestone for cement production.
“We are preparing to launch our very first tin processing facility,” Irene Bateebe, permanent secretary of Energy and Mineral Development Ministry, told Reuters on Wednesday, adding the launch would take place next month.
President Bassirou Diomaye Faye announces oil, gas and mining sector audit (The East African)
Senegal will conduct an audit of the oil, gas and mining sectors, newly elected President Bassirou Diomaye Faye told the nation in a televised speech on Wednesday, while also reassuring investors they were welcome in the country.
The audit is one of the first policy moves announced since the 44-year-old former tax inspector’s inauguration on Tuesday. “The exploitation of our natural resources, which according to the constitution belong to the people, will receive particular attention from my government,” he said. “I will proceed with the disclosure of the effective ownership of extractive companies (and) with an audit of the mining, oil, and gas sector.”
Kenya High Court suspends $350 fee charge for South Sudan cargo (The East African)
Kenya’s High Court has temporarily suspended the implementation of a $350 (Ksh45,850) levy that was being charged per container for all goods destined for South Sudan. Justice Gregory Mutai who certified the case as urgent issued the order pending the hearing of an application by clearing agents under the umbrella of Kenya International Freight and Warehousing Association (Kifwa) who are challenging the levy.
Kifwa claims that the Mombasa Monitoring Station-National Revenue Authority of South Sudan issued a directive that they should pay the money to a private company in Uganda, Invesco Uganda Limited, for a tracking system christened mandatory Electronic Cargo Tracking Note (ECTN).
Tanzania’s first fishing harbor to be completed in 2025 (CGTN Africa)
The construction of Tanzania’s first-ever fishing harbor will be completed in 2025, boosting the country’s fish catches in deep seas, Prime Minister Kassim Majaliwa told parliament on Wednesday. According to Majaliwa, the project, being built by China Harbor Engineering Company Ltd (CHEC), is 42 percent completed. The Tanzania Ports Authority says the fishing harbor has helped create jobs for more than 400 nearby residents.
Tang Zhen, deputy head of the Eastern Africa Division of the company, said CHEC will spare no efforts to help Tanzania build its first-ever fishing harbor, and continuously enhance friendship and cooperation between China and Tanzania.
Angola: Entrepreneurship Policy Review (UNCTAD)
In 2022, Angola was the eighth economy in Africa with a GDP of USD 107 billion.1 It is a least developed country that is slated for graduation in 2024, with an economy that is characterized by high dependence on extractive sectors of oil and gas. Its economic performance has been closely linked to global oil demand and prices which varied greatly over the years, putting an important strain on the country’s social-economic development.
While there are several characteristics that make Angola’s entrepreneurial ecosystem a stimulating environment for the entrepreneurial activity, there are still certain obstacles preventing the country to unlock its full entrepreneurial potential. It is therefore key for Angola to develop a national entrepreneurship strategy with a long-term vision, easily accessible online, that gives a perspective and allows entrepreneurs to plan and project their businesses into the future.
FG assembles 120 researchers, startups to develop framework for AI adoption in Nigeria (Nairametrics)
The Federal Government has announced plans to bring together 120 Nigerian researchers and startups including other stakeholders in the Artificial Intelligence (AI) space to develop a co-created framework for AI adoption in the country. The Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, announced this on Wednesday. According to the Minister, the experts would come up with this framework at the National Artificial Intelligence Strategy Workshop scheduled to be held from April 15th to 18th, 2024 in Abuja. Tijani said the resulting strategy from the session would help the government to deliver the priorities and implementation approach towards improving lives and growing the nation’s economy through the application of AI.
In December last year, the Minister announced that the Ministry in its bid to make Nigeria a global leader in Artificial Intelligence, had identified over 6,000 AI researchers who are of Nigerian descent and based in several parts of the world. According to him, these researchers will be instrumental to the country’s new drive to deploy AI in every sector of the economy and for job creation. He added that the goal of the Ministry is to use AI to enhance productivity through the deployment of smart infrastructure.
AfDB Affirms Nigeria’s Debt Sustainability, Calls for Enhanced Revenue Generation (Arise News)
The Chief Economist and Vice President for Economic Governance & Knowledge Management at the African Development Bank (AfDB) Prof. Kevin Chika Urama, has reaffirmed Nigeria’s debt was sustainable. He also praised the federal government’s efforts in revenue generation while calling for further action.
However, he emphasised the importance of addressing the debt-to-revenue ratio to ensure fiscal stability and forward momentum. Furthermore, he noted the need for Nigeria to tap into global green financing opportunities, saying access to green financing in Africa remains relatively low, with only a fraction of available global green bonds being accessed by African countries.
Urama said: “Nigeria’s debt-to-GDP ratio is still sustainable. But the issue with Nigeria is with regards to debt-to-revenue ratio, and that is why the government of the country is driving and doing quite a lot to improve revenue mobilisation in the country and by increasing the revenue mobilisation then they will be able to rebalance that ratio and be able to move forward.
Ethiopia and Brazil exchanged experiences in the agricultural sector (Prensa Latina)
The Ethiopian delegation actively participated in the observation of the methodologies used to overcome the challenges of production and productivity within the Brazilian agricultural sector with remarkable advances through the use of various technological solutions. The delegation has learned that the government of Brasilia not only managed to ensure food security for its people, but also to enable substantial economic transformations through the export of agricultural products, the publication highlighted.
Seychelles: 2024 Article IV (IMF)
“Following a post-pandemic surge in economic activity in 2022, real GDP growth slowed to an estimated 3.2 percent in 2023, despite a continued increase in tourism activity, with visitor arrivals reaching a level equivalent to over 91 percent of the pre-pandemic high and tourism earnings continuing to rise. Real GDP growth is expected to reach about 3.7 percent in 2024 on the back of a continued increase in visitor arrivals together with buoyant activity in IT, construction, and the financial sector. This outlook incorporates some drag on activity linked to the impact of the December 2023 flooding and explosion at Providence Industrial Estates.
“The external current account deficit is estimated to have widened slightly to around 7.2 percent of GDP in 2023, partly reflecting higher imports related to foreign direct investment (FDI). The Central Bank of Seychelles (CBS) overperformed modestly with respect to targets for foreign exchange reserves accumulation under the EFF program. Gross reserves stood at about $682 million at end-2023, equivalent to about 3.2 months of import cover.
East African Grain Council, TradeMark Africa partner to boost staple foods value chains in East Africa (The Citizen)
The Eastern Africa Grain Council (EAGC) and Trademark Africa (TMA) have jointly launched a three-year initiative dubbed “Strengthening Competitiveness in Export-Focused Staple Food Value Chains across East Africa.” This initiative, part of the USAID-funded “Economic Recovery and Resilience Activities (ERRA)” program, was inaugurated on April 3rd in Nairobi. The project targets the enhancement of export-oriented staple grains trade and will be rolled out in Kenya, Tanzania, and Uganda.
Amidst the backdrop of volatility and decline in the food commodities trade, the project will address various challenges including inadequate aggregation, informal trading practices, and insufficient integration of farmers into formal trade channels. Issues such as deficient storage facilities, subpar quality management infrastructure, and a lack of post-harvest handling expertise compound the situation.
Logistic hurdles such as inefficiencies in road transport and cross-border processing delays, alongside lax regulatory enforcement, further exacerbate these challenges. With the participation of over sixty stakeholders from the staple grains value chain, the project aims to achieve multiple objectives. Foremost among them is the strengthening of farmer-operated grain business hubs (G-Hubs), leveraging technology to optimize grain production, quality, and trade.
President Ruto urges African investors to take advantage of AfCFTA (Capital Business)
President William Ruto has appealed to African investors and businesspeople to take advantage of the Africa Continental Free Trade Area (AfCFTA) agreement. He pointed out that the AfCFTA eliminates barriers to trade, fosters economic growth and promotes opportunities to share wealth and prosperity in Africa. “AfCFTA is the single most potent instrument for the transformation of Africa,” the President said.
President Ruto made the remarks during the Kenya-Ghana Business Forum in Accra, Ghana, on Wednesday. Later, President Ruto visited the Africa Continental Free Trade Area Secretariat at Africa Trade House in Accra, Ghana.
The President asked African entrepreneurs to invest in the continent and unlock the vast untapped resources available in Africa.
“We must use the raw materials we have to grow industry, invest in agro-processing and seek market diversification,” he said.
“Technology democratises opportunities and eliminates corruption leading to better accountability,” he said.At the same time, President Ruto called for reforms of the African Union, saying the AU is an institution that requires better accountability.
Leverage on technology to accelerate the movement of goods and services (GhanaWeb)
President of Kenya, Dr William Samoei Ruto, has entreated businesses to leverage on technology to accelerate the movement of goods and services on the continent. Speaking with the business community during his visit to Ghana at the Africa Trade House in Accra on Wednesday, April 3, 2024, Dr Ruto noted that the move, when adhered to, will accelerate the progress of intra-Africa trade.
We’ll make the African Union fit for purpose (The Star)
“It is our intention as heads of State to make sure that we reform the African Union to make it fit for purpose. As we talk today, we have a fairly dysfunctional set-up,” Ruto said. He said the African Union Executive lacks an accountability mechanism. Ruto added that the AU parliament has been made impotent. ”If we want to have an African Union that works for the people of our continent, it must be accountable, and there must be a mechanism to adjudicate on matters that affect our organisation,” he said.
AfDB earmarks 150 million dollars in a financial facility for intra-continent trade (FASI.eu)
This agreement aims to enhance intra-Africa trade, foster regional integration, and help narrow the trade finance gap in Africa, aligning with the objectives of the African Continental Free Trade Area (AfCFTA).
The African Development Bank will extend guarantee coverage ranging from 50% to 75% for transactions in low-income countries and transition states, on a risk-sharing basis with TDB, to several eligible local and regional banks operating within the Common Market for Eastern and Southern Africa (COMESA) region, particularly those engaged in trade finance activities. This initiative is anticipated to facilitate approximately 1.8 billion dollars worth of trade over the ensuing three years.
Global Architectural Reform to top agenda of the African Development Bank’s 2024 Annual Meetings (AfDB)
As the African Development Bank turns 60 this year, the institution will reflect anew at its upcoming Annual Meetings, on the ongoing economic challenges facing its member countries and the participation of African countries in the global financial system.
Prof. Vincent Nmehielle, the Group’s Secretary-General and Kevin Urama, Chief Economist and Vice President for Economic Governance & Knowledge Management, addressed journalists on Wednesday 03 April, during a press conference ahead of its Annual Meetings, scheduled from 27 to 31 May 2024 in Nairobi, Kenya. The 2024 meetings will be held under the theme: “Africa’s Transformation, the African Development Bank Group, and the Reform of the Global Financial Architecture”.
Kevin Urama, Chief Economist and Vice President for Economic Governance & Knowledge Management, said the Presidential Dialogue would bring heads of state and governors together to take stock of measures and reforms:
”In all our research we have found that financing has been a major constraint of accelerated transformation on the continent,” Urama said.
Afreximbank takes financing roadshow to Liberia as it seeks to boost trade & Investment (Afreximbank)
African Export-Import Bank (Afreximbank) has concluded a three-day roadshow in Liberia in collaboration with the Ministry of Commerce and Industry of Liberia, Oakwood Green Africa, Loita Capital Partners International and Havit Inc., aimed at bolstering Liberia’s efforts to grow trade. This follows a prior edition of the roadshow held in 2023.
Afreximbank’s Anglophone West Africa Regional Chief Operating Officer, Eric Monchu Intong led a high-powered delegation to meet with the newly elected President, H.E. Joseph Boakai and other government officials to understand the country’s vision and how the Bank can support through promoting, facilitating and financing intra and extra-African trade. The roadshow is themed ‘Advancing Economic Development in Liberia through Trade’.
Tailoring success: The custom fit of export finance in Africa (Trade Finance Global)
Export credit agencies and financial institutions can collaborate to offer favourable financing terms for technology-focused exports, making it more accessible for African businesses to adopt and implement innovative technologies. However, to support increased intra-African trade and provide easier accessibility, the continent needs capital investment in infrastructure – such as roads, railways, and bridges – and in technology.
COMESA Special Reports:
Why large dependence on foreign aid yet only small detectable growth effects
AI and Big Data Implication for Central Banking in COMESA region
Top African oil official joins energy conference, pushing for sustainable development (African Press Agency)
Ibrahim will address investors, energy companies, and African nations at AEW, promoting investment in African oil and gas resources while advocating for their sustainable development. APPO, a group of 18 African oil-producing countries, has a long history of supporting responsible oil and gas exploration and production. The organization sees this sector as a key driver of economic growth and energy security for Africa. APPO recently published a study on the future of the African oil and gas industry in light of the global shift towards renewable energy. The study identified challenges in financing, technology, and markets.
In response, APPO partnered with Afreximbank to establish the Africa Energy Bank (AEB). This new bank, expected to begin operations in July 2024, will provide much-needed financing for African oil and gas projects, reducing reliance on foreign investment.
China’s cyberspace regulator vows to work with Africa on AI governance (South China Morning Post)
China is in intense competition with the United States to dominate AI, an industry that is still in the early stages of developing regulations and governance institutions. In late March, the United Nations General Assembly adopted its first resolution regulating AI to “[steer] the use of artificial intelligence towards global good”.
The UN said the non-binding resolution, proposed by the United States and co-sponsored by China, aimed to promote “‘safe, secure and trustworthy’ AI systems that will also benefit sustainable development for all”.
Beijing laid out its position and proposals in its Global AI Governance Initiative in October. It aims to ensure that AI is a force for good and that the technology remains under human control, while adhering to fairness during data collection, algorithm design, development and application. According to an analysis published by American think tank Brookings Institution last month, only seven African nations have drafted national AI strategies so far, while no country on the continent has implemented formal regulation of artificial intelligence.
While regulating AI might not be a priority for many nations on the continent, “African governments must first work toward reinforcing data regulation along with building the human capital necessary to sustain AI ecosystems”, the report said.
China-Africa Economic Bulletin, 2024 Edition (Boston University Global Development Policy Center)
African countries have and are shaping development goals in alignment with the United Nations 2030 Sustainable Development Goals (SDGs) and the African Union Agenda 2063. Potential sources of financing for energy and transition materials have become increasingly important for devising strategies that will allow Africa to achieve these goals.
A new report published by the Boston University Global Development Policy Center and the African Economic Research Consortium analyzes China-Africa trade, finance and FDI from 2000-2022 to evaluate trends, reveal gaps and identify pathways for China to support Africa’s energy access and transition amidst economic challenges and energy opportunities.
The authors find that Chinese financiers, investors, companies and trade facilitators have engaged in two tracks of economic engagement for energy and transition materials: An electrification track, comprising general support for electrification infrastructure (power plants and transmission and distribution lines); An extraction track, comprising a pipeline of the exploration, extraction and export of primary energy commodities and transition materials to China. Main findings – Trade: Africa-China trade (imports and exports of goods) has grown significantly from $11.67 billion in 2000 to a peak of $257.67 billion in total trade in 2022, as China has become many African countries’ lead trading partner, surpassing the United Kingdom and the United States.
Why the G-20 ‘Common Framework’ for Debt Relief Isn’t Helping Poor Nations (Bloomberg)
More than half of the world’s low-income countries are at high risk of debt distress or are already in it, and several have defaulted. But despite the world’s 20 largest economies having agreed in 2020 to a plan called the Common Framework to smooth the process of restructuring loans that governments could no longer afford to service or repay, progress toward actually providing relief has been slow.
Delays have partly stemmed from disagreements between the rich countries that have traditionally guided sovereign debt restructurings and China, which is now a major international creditor. A deal struck in late March by Zambia on $3 billion in eurobonds after three years of talks showed signs of progress — and how difficult the process has been.
BRICS Push Currency Swap With 29 Countries Worth $550 Billion (Watcher Guru)
BRICS member China is looking to promote local currency swaps with 29 developing countries worth 4 trillion Yuan, which is equivalent to $553.49 billion. The bilateral currency swaps could facilitate trade and investment options by adding a safety net for all local currencies. For the uninitiated, currency swaps between Central Banks are finance agreements in which one country can exchange its own currency for another. This helps Central Banks save costs in exchange rate risks and keep the option of using their local currencies always open.
The US dollar will play no role in the swaps as local currencies will remain the centerpiece of all transactions. In other words, Central Banks can trade billions worth in exchanges making their local currencies remain ‘always trading’ in the market. Among the 29 countries, China is also considering to include all BRICS nations in the currency swap agreement.
Related: BRICS and the new currency (PressTV)
Global shift towards green energy: Pathway to sustainable future (Azernews.Az)
In the wake of mounting environmental concerns and escalating energy demands, the world is witnessing a transformative transition towards embracing green energy solutions.
Green energy, encompassing renewable sources such as wind, solar, hydroelectric, and biomass, holds the promise of minimizing carbon emissions, combating environmental pollution, and mitigating the adverse impacts of climate change. With the imperative to limit global warming and its cascading effects, the development of green energy technologies has become paramount, offering a sustainable alternative to traditional fossil fuels.
Women, International Trade, and the Law: Breaking Barriers for Gender Equality in Export-Related Activities (World Bank)
Women are a powerful engine for international trade and economic growth. As workers, small-scale traders, entrepreneurs, and producers, their engagement in export activities has the potential not only to elevate overall productivity and competitiveness in the international market but also to reduce poverty. However, women encounter multiple obstacles and legal barriers when participating in trade, hindering the full realization of economic gains that can be achieved through trade liberalization.
This Brief analyzes women’s participation in international trade and impediments to gender equality in national laws measured in the Women, Business and the Law index. Specifically, in 2024, 504 legal provisions across 145 economies are identified as creating unequal conditions between men and women to take part in international trade. Drawing from examples around the world, the Brief further discusses the role of trade instruments, especially preferential trade agreements, in eliminating legal barriers that discriminate against women, and enhancing their involvement in export-related activities to reap the benefits of trade on global welfare.
Quick links
Adesewa Olofinko: Why Africa Needs to Embrace the AfCFTA (BellaNaija)
10 least developed African countries and their passport access (Businessday Nigeria)
The cocoa price has doubled in mere months, but it shouldn’t add much to the price of chocolate: here’s why (The Conversation)
DDG Hill: Empowering women through global trade (Trade Finance Global)
Air Cargo Demand Maintains Double-Digit Growth in February (IATA)
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BLSA calls for immediate reworking of IRP, describing assumptions as ‘spurious’ (Engineering News)
Business Leadership South Africa (BLSA), whose members include the largest domestic and foreign companies operating in South Africa, has added its voice to a growing chorus of opposition to the draft Integrated Resource Plan 2023 (IRP 2023) and has called for it to be “revised immediately”.
Writing in her weekly newsletter, CEO Busisiwe Mavuso said no good case had been built for the assumptions in the IRP 2023 and warned that the document was “tainting” the positive news associated with reduced levels of loadshedding, which she attributed to the Energy Action Plan and the collaboration between government and business.
“The first, overarching problem, is that it goes against the least-cost principle and presents some spurious costing estimates that appear to elevate the price of renewable energy and underestimate the cost of fossil fuels. “Then it slashes the amount of renewable energy – still easily the cheapest form of new energy generation – to be installed between 2024 and 2030 via public procurement from 15.2 GW in IRP 2019 to 8 GW in IRP 2023.
The document’s misalignment with domestic climate policy is also highlighted, along with the threat posed to business by the imminent implementation of carbon taxes.
New platinum-based hydrogen fuel cell as cheap to make as conventional car engine (Engineering News)
The brand-new platinum-catalysed hydrogen fuel cell system that has just been released for passenger cars reveals that fuel cells can be as cheap to manufacture as internal combustion engines (ICEs), UK company Intelligent Energy has highlighted in a release to Mining Weekly.
The company’s patented system has been designed to give passenger car manufacturers direct access to the smaller, more powerful, turnkey and commercially viable hydrogen fuel cell solution that is needed to make zero carbon emission mobility a reality in the passenger car market across the entire planet.
The hydrogen fuel cell developer and manufacturer has also confirmed that its innovative IE-DRIVE™ is a proton exchange membrane (PEM) fuel cell. PEM and platinum go hand-in-glove.
Farmers welcome incentive prices, recommend timely payments (The Herald)
Farmers have welcomed the recently announced wheat and maize incentive prices and called for the timely disbursement of payments so that they effectively implement crop rotation schedules for increased production. Maize-wheat-maize and soya bean-wheat-soya bean are the most common rotations practiced by farmers where income from one enterprise purchases inputs for the other.
Government recently announced an incentive planning price of US$440 per tonne for wheat and US$360 for maize and sorghum and assured farmers of timeous payments for their deliveries, as the Second Republic steps up efforts to bridge the El Nino-induced food deficits.
Relief for Kenyan economy as inflation falls (The Herald)
Kenya’s economy continues to experience some relief as its inflation fell in March. In February, the country’s inflation hit a 23-month low of 6,3 percent. Its inflation has fallen further from the figure recorded in February to 5,7 percent year-on-year in March. This inflation drop is the second in two months, as gasoline price is set to drop.
A report posted by the Kenyan Bureau of Statistics stated “The overall year-on-year inflation rate as measured by the Consumer Price Index (CPI) was 5,7 percent, in March 2024. This means that in March 2024, the general price level was 5,7 percent higher than that in March 2023.”
It also added; “This was mainly driven by increases in prices of commodities under Transport (9,7 percent); Housing, Water, Electricity, Gas, and other fuels (8,0 percent); and Food and Non-Alcoholic Beverages (5,8 percent) between March 2023 and March 2024.” This is also similar to last month when a drop in the cost of essential foods relieved strain on most low-income households.
Nigeria records N55.2bn trade imbalance with UK (Daily Trust)
The United Kingdom in December 2023 exported £185 million to Nigeria and imported £154 million, resulting in a negative trade balance of £30.8 million (N55.2bn), the federal government has disclosed. Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, said the federal government is committed to changing the trend in favour of Nigeria. She spoke at the Murtala Muhammed International Airport (MMIA) in Lagos at the weekend during a ceremony marking the inaugural flight of Air Peace to London-Gatwick.
SADC Ministers of Labour called to promote decent work in the region (Namibia Economist)
The SADC Ministers of Employment and Labour and Social Partners called on intensified action to promote decent work in the region at their annual meeting which took place in Lubango, Angola from 27 to 28 March. The meeting was attended by 13 member states including Namibia, representatives from the SADC Private Sector Forum(SPSF), Southern Africa Trade Union Coordination Council (SATUCC), representatives of the International Labour Organisation (ILO), and International Organisation for Migration (IOM)
At the meeting Minister of Public Administration, Labour and Social Security of Angola, Hon. Teresa Rodrigues Dias, in her opening implored member states to intensify efforts to enhance access to employment and promote sustainable enterprises and productivity. She also added that member states needed to strengthen labour market governance, increase access to social security and enhance tripartism and social dialogue among others.
‘SADC ready for green hydrogen production’ (The Namibian)
Namibia’s green hydrogen commissioner, James Mnuype, says Namibia has appointed executive professionals to attend to financial and legal matters for the production of green hydrogen in Namibia. He said this during a panel discussion on how prepared the Southern African Development Community (SADC) region is for green hydrogen production at the two-day Green Hydrogen Symposium held in Windhoek last week.
Mnyupe said professionals, led by him, will also look into environmental and technical matters for the production of green hydrogen in Namibia. The team, he said, will work with various ministries to ensure that the green hydrogen strategy for Namibia is operationalised.
AfCFTA Implementation Strategies (UNECA)
This Synthesis Report on AfCFTA implementation strategies forms part of the background documentation for the Peer Learning Conference on AfCFTA implementation strategies, held on 15 to 17 January 2024 in Nairobi, Kenya. The report is intended to provide a snapshot of AfCFTA implementation strategies in the continent and serve as a background document to inform discussions among the participants. To this end, the report provides highlights of adopted strategies focusing on their core elements, the process by which they were developed and adopted, and national experiences to date in the implementation of these strategies.
Chinas’ BRI Project: The AfCFTA Greatest Nightmare (Modern Diplomacy)
The Belt and Road Initiative (BRI), is China’s proposal to build a Silk Road Economic Belt and 21st century Maritime Silk Road in cooperation with related countries to improve connectivity and cooperation on a transcontinental scale. It has been described as one of the ambitious foreign policy initiatives of the Chinese government and aims to strengthen Beijing’s economic leadership through international trade and infrastructure programs with countries in Asia, Oceania, Europe, and Africa.
Macroeconomic Developments and Prospects For Low-Income Countries-2024 (IMF)
The outlook for Low-Income Countries (LICs) is gradually improving, but they face persistent macroeconomic vulnerabilities, including liquidity challenges due to high debt service. There is significant heterogeneity among LICs: the poorest and most fragile countries have faced deep scarring from the pandemic, while those with diversified economies and Frontier Markets are faring better. Achieving inclusive growth and building resilience are essential for LICs to converge with more advanced economies and meet the Sustainable Development Goals (SDGs). Building resilience will also be critical in the context of a more shock-prone world. This requires both decisive domestic actions, including expanding and better targeting Social Safety Nets (SSNs), and substantial external support, including adequate financing, policy advice, capacity development and, where needed, debt relief. The Fund is further stepping up its support through targeted policy advice, capacity building, and financing.
See IMF Executive Board Discusses Macroeconomic Developments and Prospects in Low-Income Countries
EAC Secretariat set to conduct High-Level Border Sensitization Mission (EAC)
The East African Community (EAC) Secretariat is set to conduct a high-level sensitization mission at selected borders within the region aimed at reviewing the performance of the various One-Stop Border Posts (OSBPs). Scheduled to commence on 9th April, 2024, the mission underscores the EAC’s commitment to fostering cooperation, enhancing trade facilitation, and improving cross-border procedures.
The primary objective of the mission is to follow up on the performance of OSBPs, identify areas for improvement, and assess the implementation of agreed action plans. Through engagement with various stakeholders including Officers in Charge of the OSBPs; customs, immigration, standards, and port health officers; as well as representatives of other border agencies, cross-border traders, and local government authorities, the EAC Secretariat aims to address challenges and streamline processes at these critical facilities.
Policy space for industrialization key determinant html (Modern Ghana)
The Minister for Trade and Industry, K.T. Hammond, has called for policy space to facilitate Africa’s industrialization agenda. In a meeting with Ms. Rebecca Grynspan, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) in Geneva as part of a working visit, K.T. Hammond emphasized the importance of securing requisite flexibilities in trade rules with a view to ensuring that Africa benefits fully from the multilateral trading system.
K.T. Hammond articulated the view that for Africa to benefit fully from the multilateral trading system, the Continent has to be in a position to attract a significant amount of trade-related investment that would enable it to take advantage of global value chains. Accordingly, he underscored the importance of obtaining flexibility in multilateral trade rules that could spur Africa’s industrialization agenda and facilitate development on the Continent.
The Minister was of the view that the African Continental Free Trade Area (AfCFTA) provides the continent with a good starting point by removing trade-related bottlenecks and ensuring that export volumes and values are increased on the continent.
Apparel, textiles sectors each see 10+% drop in trade in 2023: UNCTAD (Fibre2Fashion)
Global trade declined in most sectors last year, except for pharmaceuticals, transportation equipment and road vehicles, the UN Conference on Trade and Development (UNCTAD) said in a recent report. Among the sectors where the value of trade declined by more than 10 per cent last year are apparel, textiles and chemicals.
With a marked shift in global trade along geopolitical lines and a major supply chain reset following the COVID-19 pandemic and the Russia-Ukraine war, India’s trade reliance on China and the European Union (EU) has risen by an estimated 1.2 per cent, the report showed. This occurred despite India’s efforts to cut reliance on China through the production-linked incentive scheme and quality control orders to check the entry of cheap Chinese items.
Global trade fell in most sectors in 2023, and apparel and textiles were among the sectors where the trade value dropped by over 10 per cent, a recent UNCTAD report said.
Boost for biodiversity and sustainable development in eastern and southern Africa (TimesLIVE)
In a landmark moment for environmental stewardship and sustainable development, a beacon of hope emerges on the African continent. The unveiling of the Regional Centre of Excellence (RCoE) for Biodiversity, Forests and Seascape Ecosystems Management at the Regional Centre for Mapping of Resources for Development (RCMRD) in Nairobi, Kenya, marks a pivotal juncture in the preservation of the planet’s natural heritage.
At the heart of this initiative lies a shared commitment to safeguarding the rich tapestry of life that thrives within these ecosystems. From the towering canopies of ancient forests to vibrant coral reefs teeming with marine life, each facet of biodiversity holds invaluable ecological, economic and cultural significance. Yet, in the face of escalating threats such as habitat loss, climate change and unsustainable exploitation, the need for action has never been more pressing.
The African Union Commission (AUC), in collaboration with the Government of the Republic of Kenya, organised the 14th Meeting of the African Task Force on Food and Nutrition Development (ATFFND) and the Regional Economic Communities’ (RECs) Consultation in Mombasa, Kenya from 2 to 5 April 2024 under the theme, “Collaborating for Effective Implementation of the African Union Nutrition Policies and Strategies.”
During the meeting, ATFFND will review the implementation of the Africa Regional Nutrition Strategy (2016-2025). The meeting will also provide a unique opportunity to explore, discuss, and formulate collaborative measures to integrate education and nutrition strategies and ultimately foster sustainable development in Africa. The meeting agenda aims to encapsulate the interlinked challenges of food security, nutrition, and educational development, aligning with the task force’s overarching mission to guide the continent toward comprehensive and sustainable progress.
Red Sea attack: African countries to face higher inflation and sustained MPR tightening (Nairametrics)
African countries are expected to see higher inflation levels in 2024 and sustained interest rate tightening owing to the disruption in global trade as a result of attacks on shipping lines by Houthi Rebels in the Red Sea. This is contained in a report compiled by Afreximbank on the implications of the Red Sea attacks on African trade and macro-economic stability.
According to the report, the impact of the global trade disruption in Africa would be mixed with Egypt facing significant reduction in traffic around its Suez Canal while South Africa faced increased traffic and pressure in its ports due to the re-routing of vessels through the Cape of Good Hope.
Furthermore, the higher freight cost would not only spill into the prices of consumer goods across the continent but exacerbate the already elevated inflation levels across the continent. The report warned that such heightened inflationary levels could lead to further interest rate hikes by Central Banks across the continent which could stifle economic growth for the year.
On the trade front, the disruption in the worldwide supply chain, coupled with rising prices for food and energy, might compel local manufacturers to divest from the region if production costs exceed those of their rivals in other continents. It is projected that Africa’s trade volume will contract by mid-year.
AI poised to unlock development in Africa (The Herald)
Speaking at a panel discussion on ‘Fostering prosperity through policies on artificial intelligence in Africa’, on the sidelines of the 56th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development (COM), experts agreed that Artificial Intelligence presented massive development opportunities for Africa if the right policies and infrastructure were in place.
Ousman Bah, the Minister of Communications and Digital Economy of Gambia, said it was important to have the right policies to regulate the use of AI and also avert its risks, but Africa should not wait to have the regulations in place to embrace the technology. Artificial intelligence, a fast-evolving technology that taps the intelligence of machines or software is transforming all social spheres globally.
Nigeria can achieve SDGs with AI – Expert (EnviroNews)
An Information Communication Technology (ICT) expert, Oluwafemi Osho, says the adoption of Artificial Intelligence (AI) can aid the achievement of Sustainable Development Goals (SDGs) agenda of 2030 in Nigeria. He blamed poor AI education, low internet penetration and the lack of a comprehensive AI policy as the bane to AI growth.
“The proliferation of the Internet, availability of large volumes of data, innovations in computing hardware, development of more advanced algorithmic techniques have further revolutionised AI across various domains…. AI offers significant opportunities and benefits for Nigeria if adequately harnessed. AI can drive economic growth through industrial innovations, leading to job creation.”
UN Global Compact Annual Forum empowers sustainable development efforts (ZAWYA)
The United Nations Global Compact Network Egypt (UNGCNE) is proud to announce the launch of the first edition of the UN Global Compact Annual Forum. Scheduled to take place on May 20th and 21st, this inaugural event marks the beginning of a yearly gathering aimed at acting as a catalyst for collaborative efforts between the private sector, international organizations, civil society, academia, and other stakeholders. Africa’s representatives will engage in discussions covering diverse challenges, best practices, and the way forward, thus enriching the discourse and facilitating the exchange of innovative solutions that enhance sustainability and promote responsible business strategies.
Themed “Pathways to Sustainable Africa,” and in collaboration with Africa Business Leaders Coalition, the forum features six essential panel discussions that delve into critical topics, including climate finance, education, green hydrogen, sustainable communities, responsible supply chains, and food security. These thematic areas have been carefully selected based on prevailing global sustainability trends for the year 2024, thoroughly scrutinizing the UN’s Six Transition principles.
Meeting the Sustainable Development Goals is urgent (African Business)
As delegates gather for the Africa Regional Forum on Sustainable Development (ARFSD) at the end of April in Addis-Ababa, they will be mindful of the continent’s struggles to achieve the Sustainable Development Goals (SDGs) by the 2030 deadline. With only a little over half a decade to go, many countries are far from the set targets. In the aftermath of the Covid-19 pandemic, some have even slipped a little farther from the targets. One of five regional fora organised by the United Nations, the 2024 summit will provide another opportunity for African governments to evaluate the progress they have made, share ideas and promote best practices in pursuit of the 2030 agenda.
The Forum is designed to focus on five SDGs ahead of the July UN High-Level Political Forum on Sustainable Development, as well as the Summit of the Future, which will be held during the UN General Assembly in September. According to Nassim Oulmane, a senior economist at the United Nations Economic Commission for Africa (ECA), and head of the ECA’s Technology Climate Change, and Natural Resource Management Division, the Forum will provide a platform for governments and other stakeholders to develop the tools to pursue implementation of the SDGs and the African Union (AU) Agenda 2063, are critical. “It’s very important for us to develop these tools and link them to the development plans of countries so they can make an objective evaluation of the two agendas,” he explained to African Business.
The Pivotal Role of Businesses in Achieving the SDGs in 2024 and Beyond (The Globe and Mail)
The 17 Sustainable Development Goals, adopted by all United Nations Member States in 2015, provide a shared blueprint for peace and prosperity for people and the planet. As the world enters 2024, achieving these ambitious goals by the 2030 target date becomes increasingly critical in addressing global challenges like poverty, inequality, climate change, environmental degradation, and lack of access to education and healthcare.
The SDGs are a universal call to action, requiring collective effort from governments, civil society, and the private sector. This year marks a pivotal point, where businesses must step up and play a transformative role in driving progress on the SDGs. Companies have tremendous potential to create shared value by aligning their operations, investments, and innovation with sustainable development principles.
Global corporations hold immense influence over supply chains, employment practices, environmental footprints, and societal impact. By embedding the SDGs into their core strategies and decision-making processes, businesses can generate long-term value while contributing to a more sustainable, equitable, and prosperous world.
Can An Expanded BRICS Challenge U.S. Global Dominance? (Carnegie Endowment for International Peace)
The addition of Saudi Arabia, Egypt, the United Arab Emirates, Iran, and Ethiopia to the BRICS economic bloc — established by Brazil, Russia, India, China, and South Africa —has contributed to a growing trend of regional and international polarization. Among the most notable of these policies is the move to replace the dollar with the local currencies of member states in all economic and trade exchanges, alongside plans to issue a unified currency and create alternative financial institutions to the IMF and the World Bank.
New BRICS Members’ Perspectives on Exploiting Potential Benefits (Modern Diplomacy)
Under Russia’s presidency in 2024, BRICS, which is an informal association consisting of Brazil, Russia, India, China and South Africa, and together with its five new members, is being discussed, beyond measure, most often focusing on its expansion and as a mechanism for uplifting the Global South. By strategically forging new alliances, for instance, African members can unlock their individual and collective potential on the global stage.
One of the key problems facing BRICS+ and the Global South collaboration is the diversity of the countries involved. While this diversity can be a source of strength, it can also create challenges in terms of aligning priorities and interests. Differences in political systems, economic structures, and cultural norms can make it difficult for countries to work together effectively. Additionally, the members of BRICS+ vary significantly in terms of their level of economic development and political influence, which can further complicate efforts to create a cohesive alliance.
Quick links
How Ethiopia’s apparel sector is combatting AGOA uncertainty (Just Style)
Liberia: Exporting Unprocessed Rubber Makes No Economic Sense (FrontPageAfrica)
Using data to improve agri-food trade in West Africa (ITC)
A Sahel-less ECOWAS (The Republic)
Here’s What EV Charging Looks Like In One Of The World’s Least Developed Countries (The Autopian)