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South Africa needs to step up its reform efforts to avoid its economic recovery from the COVID-19 pandemic losing steam, according to a new OECD report. Persistent weaknesses in productivity growth and the negative impact of Russia’s war of aggression against Ukraine on purchasing power through the rise in food and energy prices continue to weigh on economic activity.
The latest OECD Economic Survey of South Africa says that improving the tax system and reducing spending inefficiencies would help to put public finances on a more sustainable path, while taking action to revive productivity growth would help to revive GDP growth and raise living standards. If needed, the tightening of monetary policy should continue to allow inflation – which disproportionately affects the poorest households – to return to the Reserve Bank’s target. It is also vital to intensify efforts to raise the country’s low COVID-19 vaccination rate to reduce the health and economic risks from future outbreaks.
South Africa’s Intractable Illegal Gold Mining Problem (tralac)
Artisanal and small-scale mining tends to be a hand-to-mouth enterprise with economic sustainability being achieved only further along the value chain by aggregators involved in buying, smelting and trading the yellow metal. Nowhere along the value chain are taxes and royalties consistently paid and much of the industry, in all countries, is in the hands of criminal networks.
All artisanal and most small-scale mining (ASM) is illegal in South Africa, by definition. The basic mining law, the Mineral and Petroleum Resources Development Act (MPRDA) of 2002, simply fails to mention artisanal mining and treats small-scale miners in the same way as large mining companies (in itself an incentive to informalisation). This regulatory gap is to be filled by legislative amendment and to this end an Artisanal and Small-scale Mining Policy was published at the end of March 2022.
Steel industry backs temporary ban on metal-scrap exports (Engineering News)
Members of the South African Iron and Steel Institute (SAISI) have come out in full support of the proposed six-month ban on the export of scrap metal from South Africa. SAISI members include ArcelorMittal South Africa, Cape Gate, Columbus Stainless, Force Steel, Scaw Metals, SA Steel Mills and Unica Iron and Steel, while Safal Steel and Grinding Media are affiliated members.
Senior African Development Bank officials recently undertook a three-day business mission to Zimbabwe. The bank’s vice president for power, energy, climate and green growth, Dr Kevin Kariuki, and its vice president for private sector, infrastructure and industrialization, Mr. Solomon Quaynor, both met with senior Zimbabwean government officials and business leaders in Harare last week. Discussions covered developing the private sector and ways Zimbabwe could best tap its renewable energy resources.
Energy and Power Development Minister Soda Zhemu said: “The government of Zimbabwe appreciates the African Development Bank’s support and involvement, particularly in the Kariba Dam Rehabilitation project ($32 million), the ZimFund Emergency Power Infrastructure Rehabilitation project ($59.5 million), the Alaska-Karoi Transmission Reinforcement project ($19 million) and the Energy Sector Reform Support project ($3.5 million).”
Ncube underscored the Zimbabwe government’s progress in tackling the economy’s structural and fiscal bottlenecks. He also noted the importance of the private sector.
Women breaking gender barriers in supply chain (Business Daily)
Kenya’s supply chain industry remains predominantly a ‘boys club.’ For most companies, entry-level workers would be equally divided by gender, but the share of women heading supply chain departments drops at every succeeding level. But now there is a remedy. In September 2021, the African Women in Supply Chain Association (Awisca) recognised 100 women in Africa for their exemplary work.
This will become an important platform that will boost the visibility of women in the sector, and amplify their work as they continue to break barriers.
A report by John Lewis Partnership published in 2021 found women are concentrated in the lower cadres of the supply chain with 58 percent in garment and textile industries and 53 percent in tea and flower plantations.
“It is true that we have more women at the middle level in the supply chain, especially in the public service. Women tend to shy away because it becomes noisy as you go up, and are more susceptible to bruising battles as you get into areas where there is likely conflict of interest. This discourages women from going higher up,” Ms Murichu says.
Nigeria lags behind African peers in exports (Businessday)
Nigeria, Africa’s largest economy, is lagging behind its peers on the continent as its struggles to ramp up exports. Its total exports as a percentage of Gross Domestic Product in 2021 was 26 percent, the highest since 2011 when it was 32 percent. As of 2021, the country’s GDP stood at $440.7 billion, according to World Bank data. However, some other African countries, although with smaller GDPs, such as Morocco, Angola, and Ghana, except South Africa, the second biggest economy on the continent, have been able to boost the contribution of exports to their GDP.
Muda Yusuf, CEO of Centre for Promotion of Private Enterprise, said Nigeria’s large economy should be an advantage to the country as its export component should be bigger. “Our export sector is still extremely weak,” he said.
The total trade in 2021 was N39.8 trillion, up 57.6 from N25.2 trillion in 2020. Exports rose by 43.8 percent to N18 trillion in 2021, less than imports, which were N19.5 trillion in 2021, up 70 percent from N11.5 trillion in the previous year, according to the National Bureau of Statistics. This shows that Nigeria recorded a trade deficit of N1.9 trillion in 2021. However, in the first quarter of 2022, Nigeria recorded a trade surplus of N1.2 trillion as exports totalled N7.1 trillion while imports totalled N5.9 trillion. According to Tajudeen Ibrahim, director, research and strategy at Chapel Hill Denham, Nigeria has to develop its power sector and infrastructures to encourage more production of goods that can be exported.
“If we work on power and our road network, it is likely that we gain momentum in terms of exports,” Ibrahim said. “Nigeria has to ensure that finished goods, which are value-added, have to be exported more rather than just raw materials.”
South Sudan to create jobs with fruits and vegetables strategy (ZAWYA)
On 8 August 2022, the Government of the Republic of South Sudan officially launched its first development strategy for the fruits and vegetables sector to boost the country’s agricultural gross domestic product (GDP) and create jobs for youth and women.
The International Trade Centre (ITC) has provided technical assistance in designing the strategy as part of its Jobs Creation and Trade Development Project, an EU-funded project focusing on creating quick-win economic and employment opportunities for micro, small and medium-sized enterprises in the fruits and vegetables value chains. The strategy will ultimately foster vibrant, resilient and sustainable food systems, inclusive growth, and job creation.
“This strategy provides a clear market-oriented vision, a framework for collaborative action and pragmatic and realistic recommendations. But it is only the first step: a good strategy is one that gets implemented and generates results,” said Darius Kurek, Senior officer for export strategy at the International Trade Centre.
The global production of fruits and vegetables has increased consistently over the last few years to cater to the growing world demand. In 2020, the worldwide production of fruits was estimated at approximately 887 million tonnes, while the production of vegetables was estimated at approximately 1.14 billion tonnes. With South Sudan’s conductive climatic and soil conditions for fruit and vegetable cultivation, the sector has potential for development, offering market opportunities in the region and globally, especially for women and youth who are forced to move to urban areas in search of jobs.
Gov’t is poised to addressing geo-political, economic challenges - Finance minister (Gambia News)
He made these remarks while delivering a speech during the joint launching of two agricultural projects held recently at Sir Dawda Kairaba Jawara Conference Centre. Organised by Central Project Coordinating Unit (CPCU) under the Ministry of Agriculture, the total for the two projects is valued at US$56 million and is to be implemented within five years across the country.
The duration of the Gambia Inclusive and Resilience Agriculture value chain development project GIRAV is from 2022-2026 and funded by the World Bank at a tune of US$40 million grant while the Global Agriculture and Food Security Programme otherwise known as Global GAFSP receives funding of the Gambia Agriculture and Food Security Project (GAFSP) to the tune of US$16 million with the African Development Bank (AfDB) as the Supervising Entity. The objective of the projects is to support and promote the development of inclusive, resilient, and competitive market oriented agricultural valued chains with specific focus on smallholder farmers and agri-business.
Among the expected results, is to contribute to improved market access, increase sales and competitiveness and also increase productivity and resilience to climate change.
Liberia experienced a strong economic recovery in 2021. Growth is expected to soften to 3.7 percent in 2022, largely due to heightened global uncertainties and commodity price shocks, which are pushing inflation into the double-digits. Liberia ‘s COVID-19 vaccination program has accelerated in recent months, but pandemic-related risks, including a potential outbreak of new variants, remain. The upcoming political cycle with presidential and parliamentary elections, scheduled for September 2023, is another source of uncertainty.
Waiting for Ethiopia: Berbera port upgrade raises Somaliland’s hopes for trade (The Conversation)
Berbera port is the main overseas trade gateway of the breakaway Republic of Somaliland. The port city is located on the Gulf of Aden – one of the globally most frequented seaways connecting the Indian Ocean and the Mediterranean. Only a few years ago, Berbera port was a dilapidated runway, originally built by the British empire, and then modernised first by the Soviet Union and later the US. The port is the lifeline of Somaliland, which imports most of what it needs, from food to construction material, cars and furniture. Its main export is livestock to the Arabian Peninsula. This picture changed considerably after the Emirates-based Dubai Ports World (DP World), a leading global port operator and logistics giant, took over the port management in 2017. It expanded the quay by 400m, established a new container terminal, designed a free zone, and started to manage the port’s operations.
Lined up alongside the quay are the latest crane models, which have become operational since June 2022. DP World employees practise operating the cranes every day. The hope is that the port will attract 500,000 TEU (unit of cargo capacity) per year, about one third of the capacity of neighbouring Doraleh port in Djibouti. This would allow Somaliland to become a logistical hub on the Gulf of Aden competing with other ports in the region such as Djibouti, Mogadishu and Mombasa.
The cranes are crucial for the speedy handling of cargo required in a modern port. The staff training, however, takes place in a port that is yet to get busy. So far, container ships arrive only infrequently.
African trade and integration
Reducing Africa’s food imports ‘hinges on effective value chain, sustainable tech’ (The New Times)
Africa’s food import bill has more than tripled, reaching an average of US$40 billion a year. Much of this imported food could be produced locally, creating much-needed jobs and incomes for the nations’ youth and smallholder farmers as well as improving food security on the continent. However, if Africa reversed the trend, the US$40billion that goes out of the continent is said to be able to bridge different gaps within the continent’s agricultural sector.
Trade wars: Farmers in Namibia, Botswana rejoice (Food for Mzansi)
The Southern African Customs Union (SACU) has taken a silent stance on Botswana and Namibia closing its borders to a number of fruits and vegetables imported from South Africa. But while South African farmers are pleading for intervention, farmers across the two borders say it will remove some unfair disadvantages they’ve had to contend with. The two countries, who form part of the SACU umbrella along with South Africa, says their respective bans are to protect local producers and form part of a bigger attempt to become self-sufficient in food security.
In an interview with Food For Mzansi, SACU spokesperson Kungo Mabogo states that the matter can only be addressed by the three countries bilaterally. “SACU only has a position when all SACU member states are involved, and they must form a common opinion. We cannot speak for Botswana, Namibia or South Africa as they are independent governments and have their structures,” he explains.
This comes after Christo van der Rheede, Agri SA’s executive director, appealed to agricultural minister Thoko Didiza and trade, industry and competition minister Ebrahim Patel. Van der Rheede has requested the ministers to intervene and to help ensure compliance with the SACU agreement.
East African Community Dither on Monetary Union, Casting Doubt on a Regional CBDC (BitcoinKE)
Central banks in the East African Community (EAC) are not achieving the targets the community set on the roadmap for a monetary union in 2024. Without such a monetary union which introduces a single currency, the likelihood of a regional Central Bank Digital Currency (CBDC) that has been discussed in the past is thrown into doubt. In April 2021, the community secretariat indicated that it was consulting on the feasibility of a CBDC as it sought enhancements for the upgrade of the East Africa Payments System (EAPS).
According to a report by the East African publication, the East African Community Monetary Affairs Committee (MAC) has indicated that several challenges exist that could still impede the timely implementation of its common monetary protocol for the 6 countries despite some progress.
Among the major achievements made by the respective central banks include the creation of key institutions of the East African Monetary Union (EAMU), and harmonization of monetary and exchange rate policies
Annual COMESA Women Trade Fair starts in Kampala (New Vision)
Women in business from 21 countries across Africa have joined their counterparts in Uganda to participate in the 3rd Annual COMESA Women Trade Fair that started Wednesday at the Uganda Museum in Kampala. Speaking during the opening ceremony, Connie Kekihembo, the Chief Executive Officer, Uganda Women Entrepreneurs Association Limited (UWEAL) noted that the trade fair and exhibition comes at a time when women like their male counterparts are recovering from the impacts of COVID-19 which ravaged businesses across the country. ”We are glad that this year the trade fair is taking place, of course as you all know we were interrupted by COVID-19 but now we are focusing on the road to recovery. We are offering our women a platform for policy dialogue on strategies to address barriers constraining women and youth entrepreneurs from maximizing opportunities for regional and cross-border trade.’’
The three-day event started with a panel of experts discussing the role of government, civil society and financial institutions in positioning Women SMEs to benefit from the African continent. The trade fair will be officially opened on Thursday by Vice President Jessica Alupo.
‘Optimise $13bn trans-Saharan gas pipeline project’ (New Telegraph)
The Major Oil Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN) have urged the Federal Government to optimise the opportunities inherent in the $13 billion trans-Saharan gas pipeline project that could send up to 30 billion cubic metres a year of supplies to Europe.
The Executive Secretary and Chief Executive Officer of MOMAN, Mr Clement Isong and the National President, IPMAN, Alhaji Debo Ahmed, in separate interviews with New Telegraph, said the trans-Saharan gas pipeline project was a welcome development. They added that if maximised, it would transform Nigeria and the international community. According to them, the project will provide an international market for Nigeria’s abundant gas resources and increase the country’s foreign exchange earnings. Nigeria, Algeria and Niger signed a Memorandum of Understanding (MoU) to build a natural gas pipeline across the Sahara Desert.
Sylva recently said the value of Nigeria’s proven gas reserves of about 206.53 trillion cubic feet was over $803.4 trillion and a potential upside of 600TCF of gas, adding that Nigeria has the most extensive gas resource in Africa. Isong described the $13 billion trans-Saharan gas pipeline project as an ambitious project, adding that such was needed to pull Nigeria out of its present economic doldrums.
Russia to Supply Nigeria, Others Major Agricultural Products (Business Post Nigeria)
Russian Agriculture Ministry’s Agroexport Federal Center for Development of Agribusiness Exports in close partnership collaboration with Trust Technologies and the business expert community drew up a concept for the development of exports of major agricultural products (grain, dairy, butter, meat and confectionery products) to promising markets of African countries. The goal of the project is to prepare a practice-oriented model for increasing supplies and enhancing the competitiveness of Russian agricultural goods in the African market.
According to the business concept report, nine African countries have been identified and chosen as target markets for the delivery of agricultural products. These are Angola, Cameroon, Ethiopia, Ghana, Kenya, Mauritius, Nigeria, Tunisia and South Africa.
These countries account for 40% of the continent’s population and one-third of all African imports of agricultural products. According to ITC Trade Map, the total volume of imports of agricultural products in these countries in 2021 amounted to almost $33 billion.
“Africa is the future”: all eyes turn to the youngest continent as the next frontier for growth (Trade Finance Global)
In recent weeks the spotlight has fallen on Africa, with Russia and America choosing to renew ties with the continent via official visits to key states. As part of his second tour of Africa since taking office, US Secretary of State, Antony Blinken, gave a speech to students at the University of Pretoria, South Africa on 8 August, in which he outlined the Biden administration’s foreign policy, declaring that “Africa is the future.” As the world’s youngest continent, with a median age of 20 years and 60 % of the population under the age of 25, Africa has the potential to shape geopolitics and world economics in the decades to come.
For one, it signals major opportunities for economic growth. However, it could point to greater economic challenges and more political uncertainty if key problems such as famine, climate change, and infrastructure problems are not addressed.
With commodities like food and energy resources scarcening in the face of climate change and the Ukraine-Russia conflict, all eyes are turning towards Africa as a possible solution.
Recognising this, Blinken said that America’s strategy is centred around five key aims: To enhance US-Africa trade ties; Halt climate change; Help the region get a handle on COVID-19; Promote democracy Help build more peace and security across the continent
Aside from issues such as global food security, which have been exacerbated by the Russia-Ukraine conflict (Africa imports a large proportion of its staple grains from the region). Many believe that America’s desire to increase trade with the continent may be related to energy (Nigeria is a major oil-producing nation).
China investment supports African supply chain development: report (Capital Business)
The China-Africa Business Council (CABC) released a new report about China’s investments in African countries on Tuesday and said the two sides have made great strides in all-around, multi-level and wide-ranging cooperation over the past 22 years. Senior officials at the Council said Chinese companies have been a positive and productive part of the African market.
This year’s report shows that Chinese companies are committed to investing in the five key drivers of the African supply chain: production, inventory, location, transportation and information. It also gives 12 examples of how Chinese and African firms support African supply chain development.
According to the report, China’s engagement with Africa has risen rapidly in recent decades. China is Africa’s fourth largest investor and has been Africa’s largest trading partner for 13 years.
“Africa is highly dependent on the rest of the world. And in terms of its own supply chain, it’s just not developed enough,” said Hannah Ryders, CEO of Development Reimagined, adding that “we have the African continent free trade area, which came in 2021, which is a great development despite COVID-19.”
“Of course, there is an opportunity for China-Africa trade to continue to grow if there is investments in supply chains,” stressed Hannah.
Belt and Road Initiative transforming Africa’s development landscape: experts (Xinhua)
Experts and scholars said Wednesday that China’s Belt and Road Initiative (BRI) has contributed immensely toward transforming Africa’s developing economies through infrastructure development, unemployment reduction and improved trade, among others. They made the remarks while speaking at a one-day virtual forum, titled “The importance of China’s Belt and Road Initiative to Africa.”
“China is not here to exploit Africa as the western world perceives, because looking at the African infrastructure development side, the BRI is helping Africa to transform itself. China comes with the help Africans need,” said Frederick Golooba Mutebi, a Ugandan independent researcher and analyst.
“China through Belt and Road Initiative has come at the right time when Africa is in critical need of infrastructure development and improved global trade opportunities,” said Mutebi.
Mustafa Hyder Sayed, executive director of the Pakistan-China Institute said: “Through Belt and Road Initiative, roads, railways, bridges, hospitals, schools and airports among others, have been constructed in Africa, which has boosted trade, increased job creation, improved transport services and education and health among African countries,” he added.
Zha Daojiong, professor of international political economy at the School of International Studies and Institute of South-South Cooperation and Development with Peking University, China
“China’s Belt Initiative has provided a platform to low and middle-income economies in Africa to register significant growth in terms of infrastructure development, job creation and improved trading opportunities,” he added.
China locks out Kenya from new debt relief deal (The East African)
The elevation of Kenya to the middle-income status saw China lock the country out of a new list of African nations that will receive a Beijing debt relief this year, under a plan by the world’s second-largest economy to help 17 poor states in the continent saddled with its huge loans forego their repayments.
The deal announced last week will see Beijing forgive 23 matured interest-free loans for 17 unnamed African countries, which are classified as least developed countries.
Beijing made the announcement during the Forum on China-Africa Cooperation that seeks to boost ties between China and its African allies. Chinese Foreign minister Wang Yi said at the forum the debt relief plan “demonstrates China’s commitment to fostering stronger economic ties with the African continent”.
Chinese authorities in Nairobi said Wednesday Kenya was left out of the deal as it is classified as lower-middle income, which the new Beijing scheme does not apply to.
Kenya, which is East Africa’s largest economy, joined the league of the world’s lower middle-income nations in 2014, having crossed the United Nations’ $1,045 gross domestic product (GDP) per capita threshold after rebasing its economy. China, which accounts for about one-third of Kenya’s 2021-22 external debt service costs, is the nation’s biggest foreign creditor after the World Bank.
Kenya faced a deteriorating cash-flow situation, marked by falling revenues, worsening debt service obligations, and the effects of the Covid-19 pandemic. The debt burden has recently been compounded by the economic turmoil unleashed by the war in Ukraine but Kenya has never defaulted on its obligations.
Africa recorded US$4.2 bln surplus in trades with Japan in 2021 (Ecofin Agency)
Trade between Japan and African countries rose by 74% year-on-year in 2021. The feat was achieved thanks notably to border re-openings after Covid-19. With the eighth Tokyo International Conference on African Development just days away, Japan and Africa seek ways to build on this momentum. In 2021, Africa recorded a US$4.2 billion trade surplus in its dealings with Japan. This is the conclusion from the foreign trade statistics published by the Japan External Trade Organization (JETRO).
According to the statistics seen by Ecofin Agency, trades between Japan and Africa reached US$23.5 billion, up by 74% compared with the US$16.5 billion recorded in 2020, at the height of the Covid-19 pandemic. Africa’s exports from Japan reached US$13.9 billion while its imports were estimated at US$9.6 billion.
Although Japan’s trades with Africa have grown tremendously during the period under review, it is still moderate compared with African countries’ trades with countries like China (US$137 billion in H1-2022). To improve its relations with Africa, in the past few years, Japan has taken several initiatives to gain more shares from China, which is currently Africa’s leading trade partner. From August 27 to 28, it will organize the eighth Tokyo International Conference on African Development (TICAD-8), which will bring together African business leaders and decision-makers in Tunisia.
At a time when foreign partners, including Russia, the USA, and the UK, have renewed actions to conquer market shares in Africa, the Japan International Cooperation Agency (JICA) has announced talks with the AfCFTA secretariat to maximize the benefits of this trade agreement.
Japan Seeks ‘Sustainable World’ In Africa Aid Forum (Barron’s)
With its stated purpose to “create a sustainable world together”, Japan on Saturday kicks off its aid conference for Africa, where rival China has invested heavily in recent years. The eighth Tokyo International Conference on African Development (TICAD8) comes against the backdrop of China’s rising influence, cemented on the continent by its “Belt and Road” infrastructure initiative. A “complex” international environment caused by issues including “the situation in Ukraine” surrounds the meeting in Tunisia’s capital, the Japanese foreign ministry said.
With a view to “accelerating Japanese investment in Africa”, the conference will focus on three pillars: economy; society; and peace and stability, according to the official presentation. With more than $130 million already set to be delivered in food aid, Japan will also provide assistance for “rice production and food security” in view of the food crisis worsened by the Ukraine war.
UK-backed Africa Infrastructure Fund plans to raise $500m (Engineering News)
Emerging Africa Infrastructure Fund plans to raise as much as $500 million over the next three years to invest in infrastructure projects on the continent. The EAIF needs the new capital to embark on its next growth phase, said Martijn Proos, director at London- and Johannesburg-listed firm Ninety One, which manages the fund. “We are open to Africa, we are open for business where there are good opportunities,” he said in an interview.
Global economy
Regional liner squeeze takes harsh toll on developing nations (Splash247)
Regional liner trades are being squeezed further with the impact of higher freight rates on consumer prices five times stronger in many less well connected countries. “It is obvious that carriers have continued to shift relatively small vessels from regional trades to East West or big North South services to take advantage of the high freight rates,” Alphaliner stated in its most recent weekly report, returning to a topic that has been covered repeatedly over the past two years.
Jan Hoffmann, head of the trade logistics branch at the United Nations Conference on Trade and Development (UNCTAD), said the shift of tonnage to the bigger tradelanes was hurting smaller and developing countries. Capacity, price and service quality of regional trades is highly dependent on what happens in other trades and jurisdictions. “As capacity is redeployed, small island states and least developed countries are confronted with higher freight rates and lower connectivity,” Hoffman told Splash.
UNCTAD calculations show that the impact of higher freight rates on consumer prices is five times stronger in small island states than the world average. UNCTAD’s simulation shows a 1.6% increase of global consumer prices caused by the higher container freight rates, vis-à-vis an 8.2% increase in small island developing states.
Flagship UN conventions support LLDC post-pandemic recovery (IRU)
Zakharenko reminded participants that all landlocked developing countries in Eurasia acceded to TIR several decades ago and keep benefiting from cross-border trade and transport facilitation, while improving the resilience of their supply chains and maintaining the required level of security for transport operations. “IRU encourages LLDCs from Africa and South America to ratify and make full use of the existing UN conventions, such as TIR and its digital tools and e-CMR, which have been identified by the UN Secretary General as important instruments to address the challenges and impacts of the pandemic,” Zakharenko added. Key recommendations and outcomes of the conference have been summarised in the Awaza Statement adopted by the delegates.
Europe searches for alternatives in fertiliser supply battle (EURACTIV)
The battle for fertiliser, a vital commodity for food production, has emerged as one of the by-products of the Russia/Ukraine conflict, leaving states in Europe and elsewhere scrambling for alternative suppliers. Though alternatives exist there is no obvious quick fix. “Gas is a major raw material for fertiliser’s production, and Europe imports almost 40% of the latter from Russia” Jacob Hansen, Director General of Fertilizers Europe, told EURACTIV. Hansen’s association represents mineral fertiliser manufacturers in the EU.
One of the few viable alternatives to Russian fertiliser is Morocco, which already accounts for 40% of Europe’s imports of phosphate. That could increase substantially in the coming months and years. During the first quarter of 2022, Morocco’s state-owned OCP group, the country’s phosphate rock miner and phosphoric acid manufacturer and fertiliser producer, recorded a turnover of €24bn – up by 77% compared to last year, over the same period, OCP officials have indicated that production could increase by 50% over the next four years.
Related News
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Local news
Scrap metal export ban to buy time for SA to build systems to tackle illegal activity (Engineering News)
The proposed policy to ban the export of waste, scrap and semifinished metal products for a period of six months is necessary to immediately reduce the ability of criminal syndicates to monetise stolen metals, while registration systems are put in place to hamper their ability to mask stolen metals within legitimate metal trade, Trade, Industry and Competition Minister Ebrahim Patel has said.
“The ban is temporary. In this period, the domestic market will provide some market for product. When the [regulatory and registration] system is fully developed, then such scrap that has been legitimately and properly obtained and can be explained can be exported,” Patel assured committee members. The new policy regime is intended to challenge the criminal syndicates’ ability to operate, sell and export stolen metal, he emphasised.
Wool industry welcomes government cooperation in overcoming export ban (Engineering News)
Agricultural business chamber of commerce Agbiz, federation of agricultural organisations AgriSA and the National Wool Growers’ Association of South Africa (NWGA) have welcomed an agreement between the South African government and the government of China to lift a ban on South African wool exports. Agbiz says the decision is a welcome development within the context of an increasingly volatile environment for international trade.
Private sector urges state to act on high cost of doing business (Kenya Broadcasting Corporation)
The government is determined to address the high cost of doing business in the country as a measure to spur regional trade. East African Community Principal Secretary Kevit Desai says the move is intended to make the country more attractive and competitive for local and international investors.
He said there is need to reduce the cost of doing business in the country to facilitate local and foreign investments. The PS says Kenya being the hub for regional and international trade is pushing to tackle barriers to trade by streamlining its import and export processes through implementation of reforms geared to addressing the high trade costs besides cumbersome and time-consuming border procedures.
Kenya: US diaspora remittances drop (Business Daily)
Diaspora remittances from the United States have fallen by a monthly average of three percent this year, reflecting the sharp cost of living in the world’s largest economy which has cut the disposable income available to Kenyans for support of relatives back home. A Central Bank of Kenya (CBK) breakdown of remittances by source country shows that inflows from the US fell to $183.4 million (Sh21.9 billion) from $221.5 million (Sh26.5 billion) in December 2021.
“Furthermore — looking from the recipient perspective — the CBK survey on diaspora remittance had listed real estate investment as a major use of the remittance flow. As such, the wait-and-see attitude in the run-up to the election coupled with runaway construction costs also waded the remittance inflow towards real estate investment.” The US is the biggest source of remittances to Kenya, accounting for 59 percent of the total sum of funds sent into the country this year. As a result, the direction of total inflows largely mirrors the performance of the US source market.
UK protests Kenya ban on second-hand buses, trucks (Business Daily)
The United Kingdom has protested Kenya’s impending ban on second-hand imports of buses and trucks, fearing the embargo will cut the flow of used commercial vehicles from the European country. Betty Maina, the Industrialisation and Trade secretary, says the UK authorities are uncomfortable with the sanction on used vehicles, which was set to take effect from July 1 before it was frozen in court. An escalation of the differences between Kenya and Britain could affect the flow of goods between the two nations.
Kenya and Britain inked a fresh trade deal in December 2020 allowing duty-free access of Kenyan goods to the UK market and avoid a post-Brexit disruption. The protest will be handled by the Kenya-United Kingdom Economic Partnership Agreement (EPA) Council, Ms Mainda said.
The EPA Council is made up of ministerial representatives from both countries tasked with ensuring smooth implementation of the trade deal, which came into force in March 2021, including ironing out trade disputes.
Nairobi signed the strategic trade deal with London on behalf of the seven-nation East African Community (EAC) on December 8, 2020, before its coming into force on March 23, 2021, after ratification by respective parliaments. The trade pact preserved duty- and quota-free access to the UK for Kenya’s largely agricultural produce such as cut flowers, coffee, tea, fruits and vegetables after Britain left the 27-member European Union trading bloc. The deal, however, provides a window of seven years after ratification by the Kenyan and UK parliaments for non-agricultural goods from the UK to start enjoying preferential import duty.
Sugar imports drop on improved production (Business Daily)
Sugar production between January and July increased by 15 percent when compared with a similar period last year, compelling the sector regulator to cut imports by nearly half last month. Data from the Sugar Directorate shows that the volume of the commodity produced hit 480,849 tonnes in the review period up from 418,799 in the corresponding time last year. The increase saw the directorate limit the imports in July to 9,394 tonnes from a high of 17,200 tonnes a month earlier, representing a 46 percent decline.
“Cumulative sugar production from January to July 2022 was 480,849 tonnes, up from 418,799 tonnes in the same period last year, representing an increase of 15 percent,” said the directorate. Sugar imports have been on a constant decline since March on the back of better production locally boosted by a steady supply of the raw material.
Nigeria exports N1.77trn products in 6months – NEPC (Daily Trust)
The Nigerian Export Promotion Council (NEPC) has disclosed that the country exported products worth N1.77 trillion from January to June 2022 to different parts of the world.
“The non-oil sector recorded a significant growth in non-oil export as a total of 4.146 billion metric tons of products worth $2.593 billion were exported between January and June 2022 and the figures were culled from the non-oil export performance reports of various shipment inspection agents who are appointed by the federal government to determine volume, value and destination of Nigeria’s non-oil exports”
The executive director added that Urea and fertiliser as well as cocoa beans were some of the top products exported.
Nigeria moves to partake in USD$175bn carbon trade market (Vanguard)
Nigeria has taken its first major step towards benefiting from the over USD $175 billion per annum carbon trade with the development of Nigeria’s Emission Trading Framework. The Minister of Environment, Barrister Mohammed Abdullahi, gave this indication while initiating the development of a national emissions framework, in Abuja, on Tuesday.
“At COP 26 in Glasgow, H.E. President Buhari announced Nigeria’s Net Zero target of 2060, making Nigeria the first major developing country and the first in Africa to undertake such a commitment. “His speech marked the beginning of a road map signaling to the international community that while greater responsibility is on the developed world, Nigeria is committed to providing leadership in climate governance both regionally and internationally.”
Ethiopia: Free Trade Zone Will Provide Efficient Services, Attract Investors: Maritime Authority (ENA)
Modern and suitable services will be provided at the Dire Dawa Free Trade Zone to improve import-export trade and attract investment, according to Ethiopian Maritime Authority. The recently inaugurated Ethiopia’s first free trade zone is expected to reduce logistics time and cost, improve efficiency and trade competitiveness, attract more FDI, boost industrialization and the economy.
Logistics Transformation Office Deputy Director at the authority, Ewnetu Taye told ENA that the location of the free trade zone will significantly reduce the current time and cost of logistics and improve import-export trade as well as attract many partners and investments.
“We hope the free trade zone under establishment will have many partners because a free trade zone requires huge investment, sophisticated knowledge, huge capital, and foreign currency.” According to him, foreign currency, easy customs and improved logistics services will be provided at the Dire Dawa Free Trade Zone. “This will attract foreign investors and stimulate FDI.”
Manufacturers in the existing industrial park, importers and service providers, especially logistics service provider companies are expected to invest, he added.
African trade and integration
EAC states challenged on trade agreements (New Vision)
The East African Community (EAC) partner states have been challenged to increase their volume of transactions under regional and international trade agreements.
The region’s private sector trade block, East Africa Business Council, said it is imperative for the region to take advantage of opportunities such as the African Continental Free Trade Area (AfCFTA), African Growth and Opportunity Act (AGOA), Economic partnership agreement, to advance trade within the EAC.
According to the EABC chairperson, Angelina Ngalula, the region has not fully exploited the trade agreements to its advantage, due to challenges such as low productive capacity, fragmentation and poor infrastructure. ”With the AfCFTA, there are no boundaries of doing business in Africa, so the EAC bloc should be well-prepared to export competitive professional services and skills to the continent. The regional governments should therefore come in to address some of the roadblocks in the way of achieving this,” she said.
EABC, COMESA, SADC Establish African Tripartite Business Councils (East African Business Week)
The East African Business Council, COMESA and SADC Business Council have officially launched and formed the African Tripartite Business Council to spearhead the inclusion of private sector policy proposals into the negotiations of African Continental Free Trade Area (AfCFTA) Agreement and the African Tripartite Free Trade Area (TFTA).This is one of the resolutions from the consultative meeting of regional business councils on the implementation of the African Continental Free Trade Area (AfCFTA) agreement organized by the East African Business Council (EABC) with support from TradeMark East Africa (TMEA).
“The African Tripartite Business Council will put forward joint private sector policy positions to the AfCFTA secretariat in Ghana and tripartite ministerial council meetings in order to accelerate the implementation of the agreements,” said, Mr. John Bosco Kalisa, EABC CEO.
Kalisa called upon the member states from COMESA, the East African Community (EAC) and the Southern Africa Development Community (SADC) to ratify the Tripartite Free Trade Area to achieve the threshold of 14 ratifications required to enable the agreement to enter into force.
Speaking at the same meeting , Dickson Poloji, the CEO of COMESA business council said, it is vital for the private sector to be knowledgeable of the trade instruments of rules of origin, standards and dispute settlement mechanism under the AfCFTA, if they are to benefit from the economic block.He elaborated that the implementation committees of the AfCFTA should be co-chaired by the private sector.
Presenting paper on the role of ICT in promoting regional trades , Ms. Nadia Uwamahoro, managing director, data systems urged for the finalization of the AfCFTA protocol on digital trade to promote youths and the emergence of African owned e-commerce platforms.
African Development Bank Optimistic about Economic Prospects for Southern Africa Region (African Business)
The Southern Africa region’s investment opportunities and prospects for economic growth are encouraging despite recent headwinds of a global pandemic and food crisis, the African Development Bank’s (www.AfDB.org) Senior Vice President Swazi Tshabalala has said. Tshabalala attended the 42nd Ordinary Summit of Heads of State and Government of the Southern African Development Community (SADC) which closed in the Democratic Republic of Congo’s capital, Kinshasa last week.
Tshabalala said: “The African Development Bank Group is highly optimistic about the future of the SADC region. Although the pandemic and food crisis challenged the region in ways no one expected, regional cooperation in investment, security, infrastructure, health, climate, agriculture, and trade is accelerating at an impressive pace. Those trends are creating new opportunities to strengthen the region’s productive systems and to upgrade urban and regional infrastructure.”
UN to help Africa develop capital markets to spur economic development (Xinhua)
The United Nations said Tuesday that it will help African countries to develop their capital markets to accelerate economic development. Sonia Essobmadje, chief of the Innovative Finance and Capital Markets Section with the Private Sector Development and Finance Division at the United Nations Economic Commission for Africa (UNECA), told Xinhua in Nairobi, the capital of Kenya, that capital markets in the continent are underdeveloped which limits the funding available for the private sector and public projects.
“Well-developed capital markets will also act as a gateway for foreign capital seeking investment opportunities in Africa,” Essobmadje said on the sidelines of the conference on sustainable capital markets development in Africa.
Expert Group assess Africa’s progress in meeting the Sustainable Development Goals and Agenda 2063 (UNECA)
The Experts Group Meeting to review and validate the draft 2022 Africa Sustainable Development Report will be held from 30-31 August 2022 in Windhoek, Namibia. The report assesses the progress and ongoing challenges faced by African States in meeting the Sustainable Development Goals (SDGs) and Agenda 2063. The report is jointly produced by the Economic Commission for Africa (ECA), in partnership with the African Union Commission (AUC), the United Nations Development Programme and the African Development Bank.
Ghana to host Pan-African AgriTech Innovation Hub in Accra (Ghanaian Times)
Ghana will host the Pan-African AgriTech Innovation Hub, a public-private partnership initiative dubbed “Timbuktoo”, aimed to mobilise and invest $1 billion of public and private capital for the next 10 years to build startup revolution in Africa.
The initiative championed by the United Nations Development Programme (UNDP) which was launched in 2021 seeks to engage a large number of private and public sector partners to establish eight Timbuktoo Hubs in recognised leading startup ecosystems, particularly in Accra, Nairobi, Cape Town, Lagos, Dakar, Kigali, Casablanca, and Cairo, among others. Addressing the gathering during TimXAccra event held in Accra on Friday, the UNDP Resident Representative to Ghana, Dr Angela Lusigi said the initiative would enable the youth in Ghana and across Africa to become world-class entrepreneurs, innovators, and problem solvers.
She said agriculture remained a key driver of Ghana’s economy, which contributed to export earnings, served as major source of inputs for the manufacturing sector and employed over 50 per cent of Ghana’s population.
According to her, despite the sector’s importance, productivity remained low and it was estimated that, only 50 per cent of the country’s 13.5 million hectares of land was currently under cultivation.
African countries eye 2030 start for generating nuclear energy (The East African)
At least seven African countries are at various stages – commissioning, shopping for vendors and mapping appropriate sites – in the roll-out of nuclear power plants, as a majority eye 2030 as a start-date for generating electricity from nuclear energy. These include Egypt, Kenya, Uganda, Nigeria, Morocco and Rwanda.
South Africa’s Koeberg nuclear power station - owned and operated by state-run power utility Eskom – is the only nuclear power plant on the continent. It has an installed capacity of 1,940 megawatts. As more countries push on with the switch to low carbon electricity, South Africa has been eyeing an additional 10,000 megawatt in nuclear power capacity. However, there has been widespread opposition by an anti-nuclear lobby.
SADC to develop natural resources to create jobs and fight poverty (SADC)
The Southern African Development Community (SADC) intends to develop the many natural resources in the Region and encourage local transformation in order to create decent jobs for the youth and fight against poverty, SADC Chairperson, His Excellency Felix Antoine Tshisekedi, President of the Democratic Republic of Congo (DRC), has said.
The transformation will require the mobilisation of resources from within the Region, in addition to contributions from international cooperating partners and private and foreign investors. In this perspective, H.E President Tshisekedi encouraged SADC to reflect on the need to set up an industrialisation fund in order to finance industrialisation projects and programmes and get out of dependence on external partners. In this way, SADC will be able to achieve a major economic and technological transformation at national and regional levels towards the deepening of regional integration as advocated by the SADC Industrialisation Strategy and Roadmap 2015-2063.
H.E Tshisekedi called on Member States to work closely together to unlock regional value chains in key sectors such as agribusiness, mining and pharmaceuticals, in which the Region is richly endowed.
SADC has overcome a lot of challenges and its most recent areas of progress include the successful ratification of the African Continental Free Trade Area (AfCFTA) by Member States as a platform for advancing economic integration, and cooperation in the management of the COVID-19 pandemic in the face of anti-SADC COVID related policies in the global north.
H.E Chakwera said SADC’s most recent challenges include the wave of climate change related impacts that now regularly devastate Member States, and the difficult task of securing global support for mitigation and adaptation efforts.
The Southern African Development Community (SADC) Secretariat, in collaboration with the Alliance for African Partnership (AAP) and two of its (AAP) members, the Regional Network of Agricultural Policy Research Institutes (ReNAPRI) and the University of Pretoria (UP), will from 29th to 30th August 2022 convene a regional policy dialogue with key stakeholders to identify interventions that are necessary to build sustainable agri-food systems in the Region.
During this SADC-AAP Dialogue, participants will discuss collective action on the transition towards sustainable and climate-resilient agri-food systems for enhanced food security, ending hunger, and achieving climate objectives in the Region. The dialogue seeks to identify interventions to build agri-food systems’ resilience to shocks and stressors, towards achieving sustainable food security, poverty reduction and economic growth in the Region.
Globally, agri-food systems – basically defined as a series of activities and institutions around the production, processing, distribution, marketing, and consumption of a particular food item – are increasingly under pressure to meet the rising food demand and changing dietary preferences and, all this in the face of climate and economic shocks. This challenge is especially pronounced in Sub-Saharan Africa (SSA) , where food production will need to increase in the range of 60-80% in order to meet the projected three-fold rise in cereal demand and where the population is estimated to reach 2.2 billion by 2050. SADC is not an exception to this challenge as the Region faces a high population growth rate and demographic transition which will fuel growing food demand and rapidly changing dietary preferences, in a region that has limited growth of manufacturing and service sectors.
China’s help on Africa’s supply chain called crucial (China Daily)
China has played an essential role in Africa’s supply chain development by addressing related challenges, such as the COVID-19 pandemic and regional conflicts, and has helped improve socioeconomic development on the continent, African officials said on Tuesday. The remarks were made at a ceremony marking the release of a report published by the China-Africa Business Council on China’s investment in Africa. From a supply chain perspective, the report showcased efforts made by Chinese enterprises to improve Africa’s supply chain and support the independent and sustainable development of Africa.
Rahamtalla M. Osman, permanent representative of the African Union to China, said the Forum on China-Africa Cooperation and the Belt and Road Initiative are closely aligned with Africa’s development blueprint and strategies, such as the AU’s Agenda 2063 and the African Continental Free Trade Area. Deeper BRI and AfCFTA cooperation would play an important role in building a more integrated African continent as well as connecting Africa to global supply chains, Osman added.
He also said that by 2021, China’s trade with Africa had increased twentyfold, and its investment stock in Africa saw a hundredfold increase since 2000. More than 3,800 Chinese enterprises have invested in Africa, he added. “All of this has contributed to China-Africa cooperation in supply chain development.”
Global economy
Goods Barometer points to stagnating global trade growth (WTO)
The latest WTO Goods Trade Barometer issued on 23 August was steady but below the recent trend line for merchandise trade, suggesting that global goods trade continued to grow in the second quarter of 2022 but that the pace of growth was slower than in Q1 and is likely to remain weak in the second half of the year.
The volume of world merchandise trade plateaued with year‐on‐year growth slowing to 3.2% the first quarter of 2022, down from 5.7% in fourth quarter of 2021. The slowdown in Q1 only partly reflected the impact of the conflict in Ukraine, which broke out in late February. Lockdowns in China also weighed heavily on trade in the first quarter.
G20 International Trade Statistics: Trends second quarter 2022 (OECD)
G20 merchandise trade growth slowed markedly in value terms in Q2 2022, as measured in current US dollars. Exports and imports increased by 2.1% and 2.6%, respectively, as compared to 4.8% and 6.2% in the previous quarter. While high commodity prices, exacerbated by the war in Ukraine, continued to fuel merchandise trade growth in nominal terms, the slowing growth in value terms partly reflects the increasing value of the US dollar against other major currencies
G20 services trade growth slowed in Q2 2022, as measured in current US dollars. Exports and imports are estimated to grow by 1.1% and 2.2%, as compared to the slightly higher rates recorded in Q1 2022 (2.1% and 2.3%, respectively). Strong travel and transport supported growth across many G20 economies, while prolonged COVID-19 containment measures weighed on services trade in East Asia.
Commodity markets: evolution, challenges, and policies (World Bank Blog)
Commodity markets are constantly evolving, reflecting growth in population and income as well as changes in relative prices, technological advances, and government policies
Over the past half-century, prices of agricultural commodities, adjusted for inflation, have been on a long-term downward path, reflecting the increases in productivity and low-income elasticity of demand . In contrast, energy prices have risen since the early 20th century, as demand has increased in line with income, and suppliers have been forced to turn to less accessible sources.
The long-run trends in metal prices have been mixed, as their high-income elasticities of demand have led to a major rise in consumption, while extraction processes have been enhanced by ongoing technological progress, boosting supply.
Large shifts in the demand and supply of commodities, along with price booms and busts and differing long term trends, pose challenges for commodity-exporting emerging market and developing economies (EMDEs). Commodities are critical sources of revenue for almost two-thirds of EMDEs, and their macroeconomic performance is heavily linked to commodity price changes. Both oil and metal price shocks appear to have asymmetric impacts on economic growth in energy and metal exporters: Price increases have been associated with small, temporary accelerations in output growth while price declines have been associated with more pronounced or longer-lasting growth slowdowns.
Oil and gas companies should drive energy transition – Asharami COO (Daily Trust)
“Oil companies should be the ones driving the energy transition because if they allow others to do it, they will be out of business. So, the energy transition has to be driven by the oil and gas companies,” Henry Menkiti, a Sahara Upstream Company, said over the weekend. He spoke at the first edition of Sahara Group Media Thought Leadership Series, held at the group’s corporate head office in Lagos.
Achieving this will however require the active participation of the private sector, with the government providing the enabling environment through regulation and incentives.
While Africa has oil now, it must begin to prepare for the transition now because the current customers are already in the transition period, Menkiit said.
For Nigeria, the transition will be less disruptive given the country’s rich endowment of gas, which should serve as the transition fuel as Africa’s leading oil producer marches to the desired destination.
“The future of Nigeria’s energy industry will be a lot of individuals and companies; change will not come from the government. It will be from private individuals. The government can only come in via regulation,” said Menkiti.
WHO Director-General’s opening remarks at the Regional Committee side event on Fighting Substandard and Falsified Medicines in Africa: A Collaborative and Integrative Approach - 23 August 2022 (World Health Organisation)
The threat of substandard and falsified medicines. The magnitude of this problem, and its damage to both lives and to economies, is immense. Low- and middle-income countries are estimated to spend more than 30 billion US dollars annually on substandard and falsified medicines.
There are several reasons for the proliferation of substandard and falsified medicines. First, a lack of access to affordable efficacious and safe medicines forces desperate people to buy medicines from unreliable sources. Second, a lack of good governance allows corruption to penetrate health systems and leaves loopholes for criminal groups to exploit. Third, a lack of technical capacity undermines the integrity of supply chains and limits the ability of countries to safeguard the health of their people.
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Local news
‘SA Agri calls to lift import ban emotional, unbalanced’ (The Namibian)
Namibian government officials have called the recent claim that Namibia and Botswana should remove the import ban on some quota of fresh produce from South Africa an emotional one, and unbalanced. This includes agriculture minister Calle Schlettwein, who said South Africa also has import bans that no one has called on to revoke. This comes after South African farmers, through their representative organisation SA Agri, wrote to their agriculture and trade ministers Thoko Didiza and Ebrahim Patel to claim that Namibia and Botswana were violating the Southern African Customs Union (Sacu) agreement by imposing import bans on certain fresh produce.
The two countries started banning the importation of several fruits and vegetables in an attempt to protect and help local producers get access to markets, as well as achieve food security. Schlettwein said the reason why Namibia has an import ban is to promote self-sufficiency.
Zim explores West Africa export market (Chronicle)
Zimbabwe is keen to diversify its export market to West Africa with the national trade development and promotion organisation, ZimTrade, sending its team to explore trade opportunities in Senegal. Building on the earlier mission to explore the Ghana market in the same region, the mission outcome should determine products and services that Zimbabwean companies can export to Western African region. The market exploration is part of the country’s African Continental Free Trade Area (AfCFTA) focused efforts on reduced duty trade gains among African states.
“The purpose of the study is to determine Zimbabwean products and services with potential in Senegal, riding on opportunities that have been made available by the African Continental Free Trade Area,” ZimTrade chief executive officer, Mr Allan Majuru, said. “Targeting Senegal as a market is in line with the National Export Strategy, which seeks to diversify our export markets and grow Zimbabwe’s exports to non-traditional markets.”
How Kenya will gain from UK trade pact (Business Daily)
The United Kingdom (UK) has opened a window for Kenyan goods such as apparel and agricultural products to enjoy lower or zero tariffs despite being a lower middle-income economy. The UK this week listed Kenya’s neighbours among them Uganda, Ethiopia, Rwanda and South Sudan including other 65 developing countries as beneficiaries of a new bilateral trade deal that cuts import taxes on hundreds of products from some of the world’s developing countries to boost trade links. But it left out Kenya since it was upgraded from the group of the least developed countries.
But the new pact under the Developing Countries Trading Scheme (DCTS) has allowed the three countries including Uganda which is Kenya’s regional top trading partner, to import goods from Kenya and re-export them duty-free into the UK. Under the deal, Kenya’s neighbours which are classified as least developed countries or LDCs will be able to buy goods in Kenya and export the finished goods to the UK. “This means that LDCs are able to participate in value chains involving materials from 95 countries and still export their final products to the UK duty-free,” said the UK.
Lekki deep seaport set to create 112,000 jobs, berth largest ship in the world – Minister of Transportation (Nairametrics)
The Minister of Transportation, Alhaji Muazu Sambo, has disclosed that the Lekki Deep-Sea Port project would create 112,000 jobs for Nigerians upon its completion. Sambo stressed on the significance of the port as it has the capacity to berth the largest ships in the world. This was made known by the minister while having a chat with journalists on Sunday in Jalingo. Sambo said that the port, which was second in Nigeria after Onne Deep-Sea Port, has the potential to garner more revenues for the country.
He said, “The Lekki deep-sea port project, which is the second after Onne Deep Sea Port in Nigeria is very significant, because the largest ships in the world can berth at the Port. “That means, more tonnage, more cargo, more revenue for the port and for the country, more economic activities. “ And above all, more jobs, like I said, over 112, 000 both direct and indirect jobs will be created as a result of the creation of the Lekki deep-sea port.
Nigeria, India’s largest trading partner in Africa — Envoy (Vanguard)
The Minister of State for External Affairs of India, Vellamvelly Muraleedharan, has said Nigeria is India’s largest trading partner in Africa. This is even as he disclosed that Nigeria/India bilateral trade in the year 2021/2022, had risen to $14.95 billion.
According to him, Nigeria has always been a favourite investment destination for Indian Businesses, with India being the second largest providers of employment in Nigeria. “The large and growing population of Nigeria, its talented youth, the abundance of natural resources, a democratic and business friendly Government and very strong cultural bonds between our peoples have all fuelled the rising economic engagement between both countries.”
Ministry of trade implements National Export Dev Strategy (Ghanaian Times)
The Ministry of Trade and Industry is implementing a National Export Development Strategy, aimed at increasing Ghana’s non-traditional export revenue to US$25 billion by 2029. In this regard, 17 priority products, ranging from automobiles and vehicles, industrial salt and starch, sugar and processed oil seeds to aluminium, iron and steel and pharmaceutical products have been identified for export under the strategy.
According to a Deputy Minister of Trade and Industry, Herbert Krapah, the plan was being rolled out alongside the Export Expansion Programme expected to assist an initial 200 private firms in enhancing their productive capacity for export to the African market.
Morocco’s Startups Bring International Fleet Management Into the Digital Age (PYMNTS.com)
As a key facilitator of intercontinental trade, Morocco plays a critical role in the global logistics space. Home to Africa’s largest port by cargo capacity in Tangier Med, numerous shipping routes connect Morocco to Spain at the only land border between Europe and North Africa. This gives Morocco a unique position in trade corridors between the two regions. While the country’s maritime heritage is among the richest in the Mediterranean, in the modern era, freight networks extend over sea, road, rail and air, with importers and exporters increasingly expecting the seamless movement of goods between them.
Against this backdrop, a number of logistics tech startups have emerged from the North African country in recent years, with many of them specifically geared toward smoothing international shipping and managing cross-border freight transport between Morocco and its trade partners.
African trade and integration
ICYMI: Ghana, seven others to start trade under AfCFTA (Ghana News Agency)
Ghana and seven other countries will soon start exchanging goods and services under the African Continental Free Trade Area (AfCFTA). The move is part of efforts to diversify and increase export among African countries through Export Trading Companies (ETCs) while achieving the Continent’s industrialisation drive and make it economically self-reliant. Mr Herbert Krapa, Deputy Minister of Trade and Industry (MoTI), said this at a seminar to sensitise African countries on the role of ETCs in easing intra-African trade under the AfCFTA in Accra on Monday.
Mr Krapa said: “Actual trading is starting between Cameroon, Egypt, Kenya, Mauritius, Rwanda, Tanzania, Tunisia, and Ghana. In the coming weeks, the dream of our forebears will be off the ground.” He said the Secretariat had launched the AfCFTA Initiative on Guided Trade to translate all the progress on paper into action to make the continent’s industrial revolution and its ability for self-reliance attainable.
The Deputy Minister explained that ETCs would make Africa leave no one behind in the regional value chain particularly small and medium-sized enterprises (SMEs), young entrepreneurs, startups, light manufacturers as well as big industries. These value-chain players will be providing export and import services, warehousing, transportation, finance, insurance, risk management and market intelligence, around which the free trade area will thrive. He, therefore, encouraged Governments and private sector players to have the right policy, finance, institutional framework, productive capacity and infrastructure to enjoy the benefits that AfCFTA provided.
China to waive some Africa loans, offer $10bn in IMF funds (Engineering News)
China, the largest government creditor to emerging economies, said it will forgive 23 interest-free loans to 17 African countries and redirect $10-billion of its International Monetary Fund (IMF) reserves to nations on the continent. Foreign Minister Wang Yi announced the cancelations in a meeting last week of the Forum on China-Africa Cooperation, according to a post on the ministry’s website. It didn’t provide details on the value of the loans which it said matured at the end of 2021, nor did it state which nations owed the money.
Since 2000, Beijing has announced multiple rounds of debt forgiveness of interest-free loans to African countries, canceling at least $3.4-billion of debt through 2019, according to a study published by Johns Hopkins University School of Advanced International Studies. The canceled debt was limited to mature, interest-free foreign aid loans, with Zambia receiving the most cancellations over that period. However, the vast majority of China’s recent lending in Africa such as concessional loans and commercial loans have never been considered for cancelation, the report added, though some of it has been restructured.
The announcement last week highlights China’s efforts to build ties with developing nations, particularly through its Belt and Road Initiative. The US and China are competing for influence around the world, and Beijing’s announcement comes at a low point in ties between the two superpowers, with tensions rising following a visit to Taiwan by US House Speaker Nancy Pelosi earlier this month and Beijing’s support of Russia amid its invasion of Ukraine.
Inside Africa’s pitch at UN climate change conference (The East African)
“Act now” will be Africa’s clarion call at the COP27 as the continent intensifies calls for a just energy transition amid a worsening climate crisis. The “action” is likely to be seen more in the halls and offices of the world’s financing institutions than on the ground, however, as Africa battles with how to finance its energy requirements.E merging details show that African envoys will press heavily polluting, rich economies to offset the continent’s environmental damage from global warming with favourable financing packages.
Studies show Africa is most vulnerable to the effects of climate change with extreme weather like drought and flooding already becoming commonplace on the continent. It is on that premise that African governments want wealthier nations to make big investments in clean technology and infrastructure to support developing countries.
Africa is keen to obtain green technology that can reduce costs and increase competitiveness in the clean energy sector. “Africa must be given adequate time to transition and transform its energy infrastructure. We cannot transform abruptly. We need resources, capacity, technology transfer and finance to power our development,” Harsen Nyambe, the director of sustainable environment at the African Union Commission told Time.
This year’s Africa Climate Week brings together governments and key stakeholders from across the continent to “explore resilience against climate risks, the transition to a low-emission economy and the partnerships we need to solve these pressing challenges.” With so much at stake, it’s clear that we must make substantial investments and coordinated efforts in building transformative climate actions across Africa. This means advancing integrated holistic solutions that connect the dots between land-use, water management, agriculture and livelihoods, between energy, natural resources, economic growth and social development, and between disaster risk reduction, climate information services and resilience. This is what we call transformative climate action.
The pathway forward starts with people, but also requires resources, political will, policies and coordination to deliver the type of transformative action we need.
Medicine security: Counterfeit medicines undermine Africa’s progress (Businessday)
Counterfeit drugs are a deadly and growing problem globally, particularly in developing countries where supply chain security is limited, undermining progress towards meeting the Sustainable Development Goals (SDGs). The World Health Organization estimates that one in ten medical products circulating in developing countries are substandard or falsified.
The problem is rife within Africa with dire consequences. Of all the fake drugs reported to the WHO between 2013 and 2017, 42 percent of the reports came from the African region. In March 2019 alone, the WHO raised alerts for fake meningitis vaccines in Niger and fake hypertension drugs in Cameroon. Then, in August, falsified versions of the antibiotic Augmentin were discovered in Uganda and Kenya.
Counterfeit medicines have both health and economic consequences for the continent. They leach money from healthcare systems and kill thousands of people, mostly within vulnerable communities. However, from the counterfeiters’ point of view, this is a lucrative industry, with a global market worth roughly $200bn. Medicine counterfeiting has become an international operation involving many actors across different countries and sectors. It has become more lucrative than trafficking in hard drugs.
TICAD8 Meeting to advance Africa, Japan Cooperation (KT Press)
The eighth Tokyo International Conference on African Development (TICAD 8) is set to take place from August 27 to 28, in Tunis, Tunisia, and is expected to advance Japan and African countries cooperation. The high-level event brings together Heads of State and Government from Africa, Japan, the United Nations and the World Bank to engage in dialogue on issues related to economic growth, trade and investment, sustainable development, human security, and peace and stability in Africa. The meeting will focus on three themes; achieving sustainable and inclusive growth with reduced economic inequalities; realizing a sustainable and resilient society based on human security, and building sustainable peace and stability through supporting Africa’s own efforts.
Global economy
China’s coastal city Xiamen sees trade with BRICS countries up 20.7 pct (Xinhua)
Trade in goods of east China’s coastal city of Xiamen with BRICS countries reached 47.9 billion yuan (about 7 billion U.S. dollars) in the first seven months of this year, up 20.7 percent from the same period last year, according to the Xiamen Customs.
Xiamen’s exports with BRICS countries amounted to 15.3 billion yuan, while imports reached 32.6 billion yuan during the period, up 28.1 percent and 17.5 percent, respectively, year on year. Xiamen’s imports and exports with Russia, South Africa, and Brazil reached 14.8 billion yuan, 7.3 billion yuan, and 15.7 billion yuan from January to July, up 29.8 percent, 25.4 percent, and 23.3 percent, respectively, year on year.
Major imported goods during the period included metal ore and heavy mineral sand, agricultural products, coal, and lignite, while exports mainly included mechanical and electrical products and labor-intensive goods.
Wheat in developing countries to feel climate change impact (Food Business News)
Climate change could have more of a negative impact on low-latitude countries than on high-altitude countries, further widening the gap between the fortunes of wheat farmers in developed countries and wheat farmers in developing countries, according to research from China published Aug. 19 in the journal One Earth. The researchers developed a climate-wheat-economic ensemble modeling approach in which they looked at the impacts of climate mean conditions and extreme events on wheat yields, price and the global supply chain. The model assessed the impact of 2 degrees Celsius global warming on the global wheat supply and demand chain.
“With this change in yields, the traditional trade position of the wheat market could be deepened, and this may cause the wheat-importing regions located in low latitudes, such as Southern Asia and Northern Africa, to see more frequent and steeper wheat price spikes than wheat exporting countries,” said lead author Tianyi Zhang, an agro-meteorologist with the Institute of Atmospheric Physics at the Chinese Academy of Science.
“Agricultural trade liberalization accompanied by protection polices in developing countries would be beneficial for global food security in the threat of climate change,” the researchers said.
Millions Go Hungry: While Billions Worth of Food Go into Landfills (Inter Press Service)
The ominous warnings keep coming non-stop: some of the world’s developing nations, mostly in Africa and Asia, are heading towards mass hunger and starvation. The World Food Programme (WFP) warned last week that as many as 828 million people go to bed hungry every night while the number of those facing acute food insecurity has soared — from 135 million to 345 million — since 2019. A total of 50 million people in 45 countries are teetering on the edge of famine. But in what seems like a cruel paradox the US Department of Agriculture estimates that a staggering $161 billion worth of food is dumped yearly into landfills in the United States.
The shortfall has been aggravated by reduced supplies of wheat and grain from Ukraine and Russia triggered by the ongoing conflict, plus the after-effects of the climate crisis, and the negative spillover from the three-year long Covid-19 pandemic.
Nutrition and climate advocates seek fruitful alliance ahead of COP 27 (Devex)
Nutrition advocates are looking to the upcoming 27th United Nations Climate Change Conference, or COP 27, as an opportunity to team up with climate advocates behind the common goal of increasing access to sustainable diets that are healthy for people and the planet.
Integration of food systems into the climate agenda has often focused on agriculture, which is responsible for about one-third of greenhouse gas emissions. This has largely excluded the explicit mention of nutrition, which focuses not only on the sufficient production of and access to food but also on ensuring that it is healthy and affordable.
“If you work on food systems and nutrition, you cannot not work on the environment. That realization has set in for lots of people, including us,” the Global Alliance for Improved Nutrition‘s Lawrence Haddad said.
Improving carbon border adjustment mechanisms (CEPR)
Climate change and the adverse effects of the accumulation of plastics in the ocean are global externalities. As was the case with ozone-depleting chemicals, these processes threaten to change the way the atmosphere and the oceans function and the functioning of these ecosystems would be better if a way could be found to prevent climate-laggard nations from acting in ways that undermine the efforts of climate progressive nations to encourage progress in the elimination of these externalities. In common parlance, these undermining processes are defined as ‘leakage’.
In political circles, leakage is said to occur when an increase in an environmental standard causes a decline in domestic production and an increase in imports of a good or service from a dirtier source. Perversely, this can cause a net increase in global emissions and, hence, a worsening the extent of the externality. In the worst case, no progress is made. When it comes to dealing with leakage, however, the World Trade Organisation (WTO) has found it difficult to find a solution (Cheng and Ishikawa 2021). In an attempt to find a way to prevent such perverse outcomes, economists have been proposing that global externalities be internalised by requiring importers to pay a levy or charge in a manner that cancels out the competitive advantage that, otherwise, would flow to factories in the laggard country. After considerable reflection in expediting progress in the reduction of greenhouse gases, this is what members of the EU are now trying to do
WFS to Focus on Reshaping Airline Resilience Post-COVID (IATA)
The International Air Transport Association (IATA) announced that the 2022 World Financial Symposium (WFS) will focus on reshaping airline resilience. The event will take place from 19-22 September in Doha, Qatar, with Qatar Airways as the host airline.
Following the greatest shock to aviation in history, the industry is emerging rapidly from the pandemic and government-mandated travel restrictions of the past two years. Industry losses are expected to reduce to $9.7 billion this year from nearly $180 billion in red ink in 2020-21. As travel barriers fall in most regions, very strong demand is supporting expectations for a recovery to pre-COVID-19 traffic levels by 2024, with profitability a possibility in 2023.
At the same time airline debt levels have soared as carriers borrowed to stay aloft during the crisis. And finance departments across the industry will face challenges as the industry achieves its 2050 fly net zero commitment.
“Airlines are resilient. Now is the time to build on the hard work and difficult restructurings of the past two years to seize opportunities coming out of the crisis. Finance will play a vital role in supporting the ongoing recovery while creating a sustainable capital structure to support our ambitious environment agenda,” said Willie Walsh, IATA’s Director General.
What do SMEs stand to Benefit from AML’s Massive Phase II Expansion? (Global News Network)
Operational expansion of corporations and large businesses globally is usually occasioned by diverse and multilayered business interests not just exclusive to profiting. Though profit driven expansions generally occur when businesses seeks additional options to generate more, for large mining concessions like ArcelorMittal, it means protection of business interest for them, and long term investment safeguards, local jobs provision for economic expansion.
When small businesses are empowered to flourish, they mobilize saving and enhance production of goods and services that meet the basic needs of the poor. While estimates vary greatly depending on definitions of SMEs across several countries, recent work by the World Bank suggests that almost 30 per cent of employment in developing countries and Tanzania alike is generated by the informal economy, while an additional 18 per cent is provided by (formal) small and medium enterprises. Together these two groups contribute 63 per cent of GDP in nearly all developing countries.
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ICYMI: South Africa: Ministers are invisible bottleneck in customs duties decisions (The Africa Report)
Companies seeking either relief on customs duties in the absence of local suppliers, or their imposition to protect local industry, face an “opaque” process with no clear timetable or information requirements, MacKay says. MacKay’s company XA Global Trade Advisors has published its first Open Cases Report on the issue. South Africa collects around 55b rand (US$3.3bn) a year in customs duties, and more than 5% of that is tied up in the “cost of indecision,” the report says. The state misses out on collecting R1.25bn in duties that would have been received if higher duties were agreed to and implemented on time, while a further $2bn is collected in duties for goods which are not made locally.
Agri leaders pleading while restrictions pile up (Food for Mzansi)
It’s been a week of “banning” shocks for Mzansi’s farming sector. While most agri leaders have contended with a ban on cattle movement to stop foot-and-mouth disease in its tracks, a ban on vegetable exports to Namibia and Botswana have them pleading for intervention. Citing the protection of their own production, the neighbouring countries took a unilateral decision to block South African veggie crops such as peppers, tomatoes, cabbage, beetroot, and potatoes from crossing their borders. Agri SA now says that it has written to agriculture, land reform and rural development minister Thoko Didiza to request her urgent intervention. “With the jobs and revenue at stake, government must immediately respond to this unjustified action in violation of the Southern Africa Customs Union Agreement,” the organisation says. It adds that the sudden measures are even more severe considering that farmers have done nothing wrong. Also, Botswana only plans to relook the restrictions in two years’ time, when they might expand the list of banned commodities.
Forum aims to revive domestic aviation (New Era)
The Namibia Airports Company (NAC) says it is determined to champion the narrative, lead the charge toward the transformation of the Namibian aviation industry and position it as a driver for a thriving domestic economy. Last week, NAC board chairperson Leake Hangala said the national airport operator is engaging government to see how they can improve the country’s airports infrastructure. This engagement includes looking at the aprons and taxiways at Hosea Kutako International Airport and Ondangwa airport, respectively, as well as building new terminal buildings at Katima Mulilo and Rundu airports.
Hangala made these remarks last week during the launch of the Namibia Aviation and Connectivity Forum. The forum is slated for 16 to 18 November 2022 and is in the follow-up of this event that a white paper and subsequent structural and policy reforms will be generated.
‘Value-addition to steer export earnings’ (Chronicle)
The re-opening of the Cold Storage Company (CSC)-Boustead Beef, should energise exportation of value-added beef and leather products, which will enhance the country’s foreign currency earnings, ZimTrade chief executive officer, Mr Allan Majuru, has said.
Under the National Development Strategy (NDS1-2021-2025), Zimbabwe is focused on expanding its domestic industrial output in which value addition and beneficiation are a game-changer in delivering export-led economic growth.
“If you look at the beef and leather value chain, and look at NDS1, the target is to grow output from around 50 000 tons of beef to around 110 000 tons by 2025. That is where we need to go,” he said. Despite the historic barriers such as Foot and Mouth Disease (FMD) that hit the sector in recent years and the illegal Western sanctions, which crippled beef exports in the past, Mr Majuru said CSC rebound was good news for the economy. “We, are glad now that it (CSC) is now operating again. If you look at the beef and leather value chain globally, it hovers above US$100 billion plus and that’s a lot of money,” he said.
Weakening shilling pushes up Kenya’s debt by $4.1b (The East African)
Kenya’s depreciating currency cost the country nearly half a trillion shillings on the external public debt burden alone, eroding the government’s efforts to pay external lenders. The shilling, which continues to present a challenge to the economy mainly in servicing of external debts and importation of goods by businesses, devalued by 9.3 per cent from 107.85 units by end of June 2021 to 117.83 by June 30 this year. A new report by the National Treasury shows that while Kenya’s external debt stock – in dollar terms – reduced by five per cent from $37.1 billion to $35.3 billion in the year to June 2022, in Kenyan shilling terms it increased by Ksh156 billion ($1.3 billion), to Ksh4.16 trillion ($34.7 billion).”The increase in the public debt is attributed to external loan disbursements, exchange rate fluctuation and the uptake of domestic debt during the period,” Treasury stated in the 2021/22 last quarterly budget and economic review report. The increase in the external debt burden was despite the government’s spending to service loans from other countries, multilateral lenders and foreign commercial banks.
Taxes spoil the party for miraa exporters (Business Daily)
Miraa traders may appear to be making a fortune based on the overall export earnings since the opening of the Somalia market. However, numerous taxes and commission that they pay have dampened their earnings. They are paying a commission of $4.5 (Sh635) for every kilogramme of miraa that is exported to Somalia. The money is collected by brokers at the Jomo Kenyatta International Airport before they are allowed to export. The exporters are also paying $5 (Sh595) as airfreight and handling charges once the consignment is delivered to Mogadishu.
Nyambene Miraa Trade Association (Nyamita) Chairman Kimathi Munjuri said these deductions are chewing a significant portion of their profits. “With all these deductions, the landing cost of miraa per kilogramme is $23 (Sh2737) while we sell the same at $25 (Sh2,975) as the best price meaning that we make a profit of Sh238 per kilogramme,” said Mr Munjuri.
Two link roads connecting Kenya to South Sudan to cost Sh22.6bn (Business Daily)
Two link roads connecting Kenya and South Sudan will cost at least Sh22.6 billion as the roads agency seeks to open up the northern corridor. The Kenya National Highway Authority (KeNHA) says in documents seeking approval from the National Environment Management Authority (Nema) that the first link road, the 142-kilometre from Morpus to Lokichar will cost Sh16 billion. The section stretching from Lesseru to Kitale, a distance of 55 kilometres will cost Sh6.6 billion.
“It’s one corridor but with different lots each with a specific length. It will be built at Sh22.6 billion but the actual cost will depend on the bidders in the tender process. Engineers just give a rough estimate,” Samwel Kumba, KeNHA deputy director of corporate communication said.
Potatoes: What higher import costs mean for consumers (Food for Mzansi)
Farmers have been battling to get good prices for their potatoes due to potato dumping from Belgium, Germany, and the Netherlands. Thabile Nkunjana, an agricultural economist at the National Agricultural Marketing Council, unpacks:
South Africa’s imports of frozen potato chips from the three countries increased by 88.6% between 2020 and 2021 to reach 29 635 tons. Moreover, in the first five months of 2022, the imports from the three countries grew by 114% compared to the corresponding period in 2021. This sharp rise in imports can be attributed to the expiration of anti-dumping tariffs in the first quarter of 2021 which coincided with high potato harvest in the European countries. In the roughly 30 000 tons imported in 2021, Belgium accounted for 67%, Netherlands (17%), and Germany (10%).
Economic recovery: Focus on homegrown solutions, reduce E-levy – GNCCI (The Business & Financial Times)
Any form of support from the International Monetary Fund (IMF) will only provide temporary relief to the current economic challenges, the Ghana National Chamber of Commerce and Industry (GNCCI) has said – urging government to focus on homegrown solutions while reducing the highly controversial electronic levy.
Government is seeking a balance of payment support from the Bretton Woods institution to deal with its mounting economic crisis. However, GNCCI believes that the Fund’s assistance will not provide a permanent solution – just like previous 16 times that the country has sought its support. Rather, it is urging government to be more inward in its approach to overcoming the current economic challenges by focusing more on home-grown solutions: such as value addition, production of goods, optimising local content policies and revenue mobilisation.
African trade and integration
SADC leaders criticise US law seeking to punish African countries that trade with Russia (News24)
The Southern African Development Community (SADC) says the United States’ plan to implement measures to punish African countries that trade with Russia was in bad taste.The US House of Representatives passed the Countering Malign Russian Activities in Africa Act on 27 April by a huge, bipartisan 419-9 majority. The act is awaiting the approval of the Senate, after which US President Joe Biden will sign it into law.The law seeks to sanction African countries that trade with Russia amid the war in Ukraine.
One major highlight is that African countries should not buy oil from Russia, because, according to the US, money generated from oil exports funds the war.But because Russia is a global superpower in food security, African countries are allowed to buy grain from it as long as it’s not stolen from Ukraine.
SADC Reaffirms Support for Regional Peace, Sustainable Development (Business Post Nigeria)
Besides pursuing concrete investment projects and running a joint business with local partners, the United Kingdom now plans to considerably cut taxes from around 99 per cent of goods imported from Africa. At least, after its historic UK-Africa Investment Summit held in January 2020, the UK has increased its support for business on the continent, a step that aims at strengthening aspects of the planned economic cooperation with Africa. Monitoring developments and random research after the summit, we have noticed different priorities – all of which are supporting and strengthening economic partnerships in a number of countries on the continent. The significance of these is to help unlock opportunity, spread prosperity and thus transform lives in Africa.
New vision for development in East Africa will build crisis resilience (EconoTimes)
Facing resurgent conflict, fuel inflation and food shortages, the heads of state of the East African Community (EAC) rallied around a new vision of regional development at their latest summit in Tanzania in late July. Leaders agreed on the importance of unlocking the vast economic potential of its Common Market, stretching from the Indian Ocean to the Atlantic following the Democratic Republic of the Congo (DRC)’s recent accession to the bloc, by ramping up intraregional trade and foreign investment.
This revolutionised Common Market will complement the EAC’s traditional growth model, based on the extraction and export of its raw materials, with a diversified regional economy driven by strong homegrown industries. This more autonomous economy, founded on thriving transport, agriculture and renewable energy sectors, will help build the region’s resilience to external shocks while creating local jobs and fuelling East Africa’s green transition.
Paired with improved regional transport connectivity, a boom in agricultural production would help protect the region from food shortages and inflation triggered by the war in Ukraine and climate change-linked drought.
Building Member States Institutional Capacity to Eliminate Trade Barriers (COMESA)
Four Member States of COMESA have received capacity building support to their institutional frameworks for elimination of Non-Tariff Barriers (NTBs) on Common goods, in compliance with the requisite COMESA Regulations. The regulations define the roles and responsibilities of the NTBs institutions to deliver on the intended objective to eliminate barriers across COMESA region and increase intra-COMESA trade.
Madagascar is the latest Member State to receive training to support the development of a National Strategy for Elimination of Non-Tariff Barriers (NTBs). Similar trainings have been conducted in Zambia, Zimbabwe and Malawi while Egypt and Tunisia are the next in line.
The trainings follow an earlier decision by the COMESA Council of Ministers to the COMESA Secretariat to provide technical support to Member States to implement national NTBs elimination programmes which are premised on sound national NTBs elimination strategies. COMESA Regulations for the Elimination of NTBs provide legally constituted tools for reporting, monitoring and addressing NTBs, the institutional arrangements to manage the NTBs elimination process as well as procedures followed to tackle situations that create NTBs.
Survey announcement: Formulation of the African Development Bank Group’s new Ten-Year Strategy (AfDB)
The African Development Bank Group has launched preparations for a new Ten-Year Strategy (TYS 2023-2032), which will supersede its current TYS (2013-2022). The next TYS is expected to provide a vision for how the Bank plans to build on its significant achievements over the last decade to accelerate Africa’s inclusive, green and resilient growth and development. As part of the formulation of its new Ten-Year Strategy, the Bank is conducting external consultations to ensure that the specific needs and expectations of its clients are well understood and captured. The consultations will also provide an opportunity for stakeholders to offer a variety of perspectives to shape the Bank’s strategy to transform Africa. The consultations will also offer opportunities to deepen existing partnerships and establish new ones, as the continent faces an unprecedented set of challenges in the coming decade.
Afreximbank, Ecobank Togo, and BIA Togo finance the construction of the Adétikopé Industrial Platform (Afreximbank)
The African Export-Import Bank (Afreximbank) as Lead Manager, the Togolese subsidiary of the Ecobank Group and BIA Togo, Attijariwafa Bank Group, have signed a credit agreement with Plateform Industrial Adétikopé SAS (PIA) for the construction of the infrastructure of the Adétikopé Industrial Platform which covers a total area of 400 hectares. This agreement, worth a total of 145 million euros (more than CFAF 95 billion), is part of the support for the socio-economic development of Togo through the implementation of the new government roadmap 2021-2025.
The objective of the new government roadmap 2021-2025 is to make Togo a modern state with a sustainable and inclusive economic growth. Creating more than 35,000 direct and indirect jobs, the Industrial Platform of Adétikopé aims to promote attractiveness and attract investors to develop industrial and multi-sectorial activities, including the processing of agricultural products (cotton, soybeans, cashew nuts, etc.) and local mining. The project in its phase 1, houses an industrial zone; a logistics zone; a commercial & residential center; and a world-class infrastructure. It will also develop in phase 2, agricultural processing industries (cashew, pineapple, corn, mango, sesame) and modern infrastructure.
“Afreximbank considers the industrial platform as an initiative in line with its objectives of promoting and facilitating the development of African industrialization and exports. This project represents Afreximbank’s fourth project in the Industrial Parks space with the Arise Group (two projects in Gabon and one in Benin), a collaboration that today represents solutions totalling approximately €257 million,” said Oluranti Doherty – Director of Export Development, Afreximbank.
Latest US strategy highlights Africa’s place in the new world order (The Mail & Guardian)
Under the harsh, uncompromising glare of superpower realpolitik, the African continent is apparently only significant for three reasons. These are helpfully outlined, in a blue highlights box, in the front of the US’s shiny new “Strategy Toward Sub-Saharan Africa”, which was released this week by Secretary of State Antony Blinken. First, Africa’s people: Africans will be 25% of the world’s population by 2050. In other words, they are the future workforce of a world where the populations of so many countries are ageing fast.
Second, Africa’s geography: The continent is home to 30% of the world’s critical minerals and its second-largest rainforest. There can be no sustainable future without access to those minerals, many of which are crucial to renewable energy technologies. Similarly, the health of the planet depends on the Congo rainforest remaining undeveloped. Third, African countries are the largest voting bloc in the UN, accounting for about 28% of the vote.
Global economy
UN chief ends Europe trip with visit to ‘vessels of hope’ (UN News)
Completing his trip to Europe on Saturday, UN chief António Guterres oversaw the departure of two ships involved in the Black Sea Grain Initiative, a UN-brokered operation to bring urgently needed hunger relief to the Horn of Africa.
In a press conference with Minister Akar, the Secretary-General thanked the government of Türkiye for their pivotal role in the Black Sea Grain Initiative. The collaborative work of the teams sitting around the table at the JCC embodies what we can achieve with political will, top operational expertise, and collective effort, Mr. Guterres told journalists. He described the ships that he had just seen in the Marmara Sea and Istanbul is only the more visible part of the solution. The other part of this package deal, he said, is the unimpeded access to the global markets of Russian food and fertilizer, which are not subject to sanctions.
“Without fertilizer in 2022, there may not be enough food in 2023,” said Mr. Guterres. “Getting more food and fertilizer out of Ukraine and Russia is critical to further calm commodity markets and lower prices for consumers.”
What would BRICS expansion mean for emerging markets? (Atalayar)
As emerging markets recover from the COVID-19 pandemic and face financial headwinds due to interest rate hikes in the US, the BRICS group – Brazil, Russia, India, China and South Africa – is looking to expand its membership to tackle shared challenges.
At the 14th BRICS Summit held in July, China, Russia and India discussed the potential entry of Egypt, Saudi Arabia and Turkey, which are reportedly preparing applications.
Reflective of the potential that enhanced unity and trade among emerging markets can facilitate economic growth, calls for the expansion of the BRICS began in 2013 and received renewed impetus when China was president of the grouping in 2017. However, these initiatives have failed to gain traction.
Critics argue that this current push for BRICS expansion is driven by China’s intent to gain a larger footprint in the global economy, as it is once again president of the grouping. Whereas Russia and South Africa support expansion, Brazil and India have shown little enthusiasm.
Nevertheless, the urgency of solving global challenges of food security and climate change may outweigh such concerns and encourage cohesion among prospective BRICS members.
UN, global orgs call for increased Cotton Made in Africa investments (just-style.com)
The cotton conference, which was organised by the World Trade Organization (WTO) and UN Conference on Trade and Development (UNCTAD) in July urged donors to create partnerships and make investments that will move Africa’s cotton sector forward.
The organisations at the conference announced a “Call for Action” on cotton that recognises the challenges hampering cotton-producing LDCs to compete. The Call for Action commits signatories to continue seeking solutions for the Cotton-4 countries to improve their competitiveness, achieve higher yields and greener production, and add value both to fibre and by-products.
At the call for action signing ceremony, which took place during the conference, she welcomed Afreximbank’s pledge and said: “Cotton is more than a commodity. It’s more than just transforming fibre into apparel or home textiles. Cotton is a way of life and a road to sustainable development.”
“It is a way to address broader development concerns to promote decent jobs and environmentally friendly, sustainable, and fairly priced products.”
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Metals, engineering sector bearing the brunt of various economic events (Engineering News)
After starting the year off strong, the outlook for the metals and engineering (M&E) sector is starting to show deterioration, the Steel & Engineering Industries Federation of Southern Africa (Seifsa) reports. The federation explains that the performance of the M&E sector is indicative of the prevailing economic fundamentals, with it being extremely vulnerable to global and domestic economic events. Seifsa’s estimates already point to production contracting by between 1.1% and 1.3% in the second quarter of the year, with notable downside risks for the full year.
Chibanguza has identified the themes behind global and domestic economic fundamentals as being aggressive monetary policy tightening in the US – in response to multiyear record inflation; the effect of the Russia/Ukraine conflict on the European Union economy; and China’s aggressive zero-Covid-19 policy, which has impacted the country’s economic hubs of Shanghai and Beijing.
“These themes will dominate the global economic narrative and the slowing of global economic growth. Steel production is highly correlated to growth and the early warning signs of a slowing growth rate are evident in the decline in iron-ore prices, a key ingredient in steel production,” he says.
Energy transition also requires choices to ensure food, water security (Engineering News)
While the jury is still out on how exactly climate financing will be used to set South Africa’s energy sector on a low-carbon path, there are various other impacts and changes to industries and households looming, that are not discussed as often. Some of these issues and considerations were unpacked in a webinar hosted by the Black Energy Professionals Association, with comments from exhibition host Enlit Africa head of content Claire Volkwyn, research institute Trade and Industry Policy Strategies senior economist Nokwando Maseko and civic education institution Rosa Luxemburg Stiftung South climate justice project manager Dr Roland Ngam.
Growing need to embed climate resilience into SA’s infrastructure (Engineering News)
News about extreme weather events has become a monthly occurrence, highlighting the importance of embedding some measure of infrastructure and societal resilience in the evolving climate. Damage to the built and natural environments disrupts socioeconomic activity, but the general public, naturally, tends to focus on visibly dramatic and/or traumatic events, often ignoring the more understated impacts of climate change.
Global Centre on Adaptation (GCA) CEO Patrick Verkooijen notes that “every corporation and individual is vulnerable to climate risk because they all depend, to some degree, on infrastructure. Ensuring that these infrastructure systems can operate under future climate scenarios is vital for us and our economies”.
He adds that the cost of infrastructure damage will increase exponentially by 2050. Citing Ghana as an example, he notes that climate risk could lead to $3.9-billion worth of damage to the transport sector by 2050. This would, in addition to strangling the Ghanaian economy, risk cutting off 80% of the population from access to healthcare.
Creating infrastructure resilience requires that local governments understand the current and future impact of climate change on the built and natural environment, and all the potential implications of climate risks. They should also model the risk impacts and use such models to create a comprehensive and strategic plan to help drive resilience, he explains.
Mozambique to export first LNG as global natural-gas prices soar (Engineering News)
Mozambique is poised to ship its first cargo of liquefied natural gas overseas, joining the ranks of the world’s exporters as a global energy crunch pushes prices of the fuel to record highs. The LNG tanker British Mentor, operated by BP Plc, is set to arrive Aug. 24 at a new floating terminal that Eni is completing off Mozambique’s northern coastline, ship-tracking data compiled by Bloomberg show. Eni didn’t immediately respond to a request for comment. The Italian company has said it’s already planning a second floating export platform in the southern African country that could be brought on in less than four years.
Nigeria Recorded Positive $2.6bn Trade Balance with Indonesia in 2021 (This Day)
Nigeria recorded a favourable trade balance of $2.6 billion in its bilateral trade relationship with Indonesia in 2021. This was disclosed yesterday by the President of Nigerian Indonesian Chamber of Commerce and Industry (NICCI), Mr. Ishmael Balogun, during a press conference to announce the Nigerian Indonesian Investment and Trade Forum 2022, which would be holding in Jakarta, Indonesia between October 17, and October 27, 2022.
Balogun said that deliberate effort is needed to increase the trade balance to $4 billion in favour of Nigeria in 2023 by attracting more foreign direct investments from Indonesia to Nigeria as well as showcasing the best of Nigerian products for export trade with Indonesia in particular and the rest of the world in general.
He said: “Our (Nigeria) trade balance with Indonesia in 2021 was exactly $2.6 billion. It is my opinion that we can actually do better than that. And that is why we need to take deliberate actions. For that reason, we said that we going to do Nigeria Indonesia Trade Mission in Jakarta, Indonesia.
“We want the trade balance to reach $4 billion by 2023. And in order to do that we are sensitising Nigerian business elites and informing them that Indonesia is a place where there are opportunities in agriculture, horticulture, pharmaceutical, beauty and lifestyle, aviation, defence, digital economy and green energy. If they are doing it right, then there is a lot we can learn from them.
Over $600m spent on imported chicken in 2021 - poultry farmers unhappy (Ghanaian Times)
Over $600 million worth of chicken is dumped onto the Ghanaian market annually. This has compounded the woes of Ghana’s poultry industry which is on the verge of collapse due to the lack of regulation to check the dumping of chicken onto the market. Speaking at a hearing over allegations of dumping of chicken into the country by the Ghana International Trade Commission, National Chairman of the Poultry Farmers Association, Victor Oppong, expressed worry that local players may be forced out of business.
The Ghana International Trade Commission seeks to find an amicable solution to unfair trade practices that has been a hindrance to many Ghanaian businesses including the poultry industry. The investigation of dumping of poultry products is influenced by widespread agitations from local players regarding loss of jobs and quality of products onto the market.
Exporters urged to be mindful of fake Certificate of Origin (Ghana Business News)
Exporters must be mindful of the originality of Certificates of Origin (COO) that accompany their exports since some unscrupulous freight forwarders are generating fake ones. Mr Daniel Osei Torgbor, Greater Accra Regional Head of the Ghana National Chamber of Commerce and Industry (GNCCI) who made the call, said the issuance of fake certificates to accompany export goods, could mar the image of the country globally and affect bilateral agreements meant to extend some privileges to Ghanaian exporters. Speaking to Ghana News Agency in an interview in Kumasi, he said COO was an important international trade document that certified that goods in a particular export shipment were wholly obtained, produced, manufactured and processed in a particular country.
It also facilitates international trade and proves authenticity of the product, while providing documentary evidence of origin of the goods exported and other varieties of documentation such as packing lists, commercial invoices and proforma invoices.
He stressed that immediate attention and action was needed to address the issues considering the role of the certificate of origin in the African Continental Free Trade Agreement (AfCFTA), since it was the primary document that was being used to facilitate trade.
Establish more firms in Ghana – Kyerematen woos Indian investors (BusinessGhana)
The Minister of Trade and Industry, Alan Kyerematen, has urged Indians to invest more in Ghana, especially in the manufacturing sector, to benefit from the opportunities offered by the African Continental Free Trade Area (AfCFTA). He said although existing Indian companies in the country had contributed immensely to Ghana’s economy and also created jobs for the youth, India could still do more by taking advantage of the peaceful business environment in the country. Mr Kyerematen was speaking at a reception to mark the 75 Independence anniversary of India at the India House in Accra last Monday.
“Our two countries share a lot in common — our struggles for independence from colonial rule, our shared democratic values and our common challenges, to mention but a few. We cherish the longstanding friendship and cooperation between our two countries,” he added.
Ghana has developed a maritime policy. Here is what it means (The Conversation)
Ghana has an abundance of marine resources. They include fisheries, hydrocarbon reserves, inland waterways and ports that are located along important international shipping lanes. These present the country with a wide range of opportunities for ensuring food security, bridging income inequalities, attracting foreign direct investment, increasing domestic productivity, and enhancing trading conditions. This underscores the imperative to harness and safeguard them wisely.
The vision of the strategy is to ensure that by 2040, Ghana’s maritime space will be safe and secure with a thriving blue economy that benefits every Ghanaian. It presents an integrated approach towards achieving this vision.
The document outlines six strategic objectives that focus on safety, security, marine environmental protection, blue economy development, capacity building and cooperation. It also provides a framework for implementation and sustainability. This includes calls for the allocation of resources funded from the national budget.
35.8% decrease in Egypt’s trade deficit in May 2022 (Daily News Egypt)
The Central Agency for Public Mobilization and Statistics (CAPMAS) issued on Wednesday the monthly bulletin of Foreign Trade in May 2022. The trade deficit reached $2.61bn during May 2022, versus $4.06bn in May 2021, a decrease of 35.8%.
Egypt’s exports increased by 18.3% as it reached $4.01bn during May 2022, versus $3.39bn in May 2021, due to an increase in the value of some commodities such as petroleum and liquefied natural gas products by 44.1%, crude oil by 30.7%, fertilizer by 33.9%, and ready-made clothes by 48.1%.
African trade and integration
Africa still has a disproportionate dependence on extractives’ exports (IPPmedia)
The strategic partners’ consultative retreat on AMDC’s theory of change was inclusive of an overview of the new AMDC’s operational metrics alongside the current and rapidly evolving minerals management and development landscape on the continent.
Opening remarks by His Excellency Albert Muchanga, the African Union Commissioner on Economic Development, Trade, Tourism, Industry and Minerals (ETTIM) began by describing the milestone memory lane trek since the launch of the first phase AMDC in 2013 to date as a response to the question of where AMDC has come from in its mandate to become the facilitator of choice to enable AU Member States realise the Africa Mining Vision. Against that backdrop, the Commissioner envisaged the retreat would come up with a roadmap towards AMDC becoming a dynamic organisation capable of meeting the sustainable development needs of Africans courtesy of the minerals sector.
In concluding his remarks, the Commissioner urged the strategic partners, of which he hoped in future will have all the African Union Regional Economic Communities(RECs) represented in addition to the Africa Finance Corporation as well as the Africa Trade Insurance Agency, to work in conjunction with the mandate of the AMDC Interim Secretariat
Upon presentation of the AMDC’s results framework centred around several goals, presentations were made by the strategic partners on their work and how they would collaborate on the Centre’s goals amongst which are to ensure: That Member State policies are consistent with the principles of the Africa Mining Vision (AMV), including governance and participation in the minerals sector; Minerals contribute as a driver for industrialisation, facilitated by intra-African trade; Enhancing geological and mineral knowledge and information systems for development; Modernising Artisanal and Small-scale Mining (ASM) and ensuring the sector is fully integrated into the formal national and regional economies; Sustaining and integrating the management of Africa’s mineral and energy resources, business process innovation and efficient capital resources allocation whilst encompassing robust follow-up, coordination, reporting, knowledge management and capacity building and/or strengthening.
Transport start-ups growing in sub-Saharan Africa (Engineering News)
In the past year, the transportation sector achieved an impressive record of 21 start-up companies, the majority of which were aimed at unlocking new growth opportunities through software, Internet-enabled solutions, and alternative e-mobility solutions. With roads being the arteries through which the African economy pulses, the ongoing challenges have been great hindrances to sustainable economic growth and global competitiveness and trade. The spark of positive change being driven by recent start-ups in markets such as Nigeria, South Africa and Kenya has the potential to continue being positively influenced by global trends and shifts, but will require the continued support of innovators in both the private and public sectors.
This start-up wave brings one step closer achieving the estimated jump of $16-billion in intra-regional trade that economists and trade experts expect to be possible through the African Continental Free Trade Area (AfCFTA) agreement. Though not without challenges, including an infrastructure investment shortfall of between $67-billion and $107-billion yearly, according to the International Finance Corporation, a look at recent start-ups and funding avenues in Africa points to a growing attraction of the continent as the last growth frontier for investors.
For transport start-ups specifically, the records show a proactiveness by innovators to help solve Africa’s connectivity predicament, where supply chain challenges and limitations in physical infrastructure network limitations amount to about 40% to 60% of the surcharge costs for goods in Africa.
Post-Covid restart offers African airlines a new chance (The Citizen)
African airline operators are going back to the drawing board. They are mapping sustainability plans including fostering cross-market collaborations to rev up the continent’s intra-African and grow their global air traffic market share. Africa’s aviation operators and experts have retreated to the drawing board to analyse the continent’s falling global air traffic share as rising passenger demand begins to lift airlines performance closer to pre-pandemic levels.
The establishment of Africa’s first ‘aviation laboratory’ and the start of implementation of a strategic alliance between Kenya’s and South Africa’s national carriers in July are the latest indications of an industry keen on addressing bottlenecks to its growth and expansion, competitiveness and sustainability.
“The overall objective of the laboratory was to address the root cause of challenges facing the air transport industry in Africa and develop relevant solutions to revamp the sector,” said African Airlines Association (Afraa) secretary general Abdérahmane Berthé.
A sustainable future for Africa through continental free trade and agricultural development (Nature)
Developing and integrating agricultural markets may be key to addressing Africa’s sustainability challenges. By modelling trade costs from farm gate to potential import markets across eight African regions, we investigate the impact of individual components of continental free trade and the complementary role of domestic agricultural development through increased market access for farmers and agricultural intensification. We find that free trade would increase intra-African agricultural trade sixfold by 2030 but—since it does not address local supply constraints—outside food imports and undernourishment would reduce only marginally. Agricultural development could almost eliminate undernourishment in Africa by 2050 at only a small cost of increased global greenhouse gas emissions. While continental free trade will be enabled in Africa through the African Continental Free Trade Area, aligning this with local agricultural development policies is crucial to increase intra-African trade gains, promote food security and achieve climate objectives.
JICA, AfCFTA collaborate to enhance opportunities for businesses (Graphic Online)
THE Japan International Cooperation Agency (JICA) has opened discussions with the Secretariat of the Africa Continental Free Trade Area (AfCFTA) in Accra on how to maximise the benefits of the trade pact for businesses in Africa. The discussions are to explore the possible areas of cooperation between the two sides to for JICA to invest resources and technical expertise to help enhance the opportunities for businesses.
The Vice President of JICA said Japan, through its international assistance agency has been a critical component of private sector development in Africa and would continue to support critical stakeholders in the continent to create opportunities for businesses. Mr Kato said the agency saw the AfCFTA to be a great opportunity for opening up trade among African countries and efforts to maximise its gains would be prioritised.
He noted that while the free trade area was critical to Africa’s development, its successes could be limited if the right programmes were not put in place.
Towards deeper integration in SADC (sardc.net)
The 42nd SADC Summit adopted a raft of measures to deepen regional integration and sustainable development in southern Africa. The theme of the summit was ”Promoting industrialization through, agro-processing, mineral beneficiation, and regional value chains for inclusive and resilient economic growth.”
The approval of the much-awaited SADC Regional Parliament brings on board what has long been seen as the missing piece in the regional integration jigsaw puzzle. A SADC Regional Parliament will ensure broader citizen participation in regional affairs. It will also facilitate more extensive debate on regional issues and thus accelerate the implementation of SADC protocols that need to be ratified and domesticated into national legislation. This can become a key driver of integration and development, bridging the gap between citizens and policymakers.
Sadc development fund key to unlocking integration, industrialisation (Chronicle)
Operationalisation of the Sadc Regional Development Fund is vital to unlocking and fast-tracking integration and industrial development as it avails the necessary resources for the implementation of various development programmes.
This was a key message expressed by the leadership of the Southern African Development Community (Sadc) at the 42nd Sadc Summit in Kinshasa, the Democratic Republic of Congo. Mooted nearly a decade ago, the Sadc Regional Development Fund (RDF) is a self-financing and revolving mechanism intended to end the reliance on external support to drive southern Africa’s development agenda. The Fund will provide a window for financing economic development and sustainable growth through supporting regional infrastructure development, industrial development, integration and other economic needs as well as social development at concessionary rates.
Current estimates to fund development programmes targeted in the Sadc Regional Indicative Strategic Development Plan 2020-2030 have been put at over US$50 billion.
As West Africa’s population booms, its economy continues to expand, the opportunities for businesses to trade across the region are vast. The rising need economy has presented various opportunities across all industries in West Africa. Previously an agriculturally driven economy is now facing a transition. Majority of the newly established businesses are catering the growing needs of the people of west Africa, which include industries such as Hospitality, Healthcare and Banking.
One of the catalysts and driving forces for this economic can be seen from active participation of the West Africa Trade & Investment Hub (Trade Hub, which is a 5-year, $140 million trade and investment facilitation activity designed to improve private sector productivity, profitability, and competitiveness in West Africa through market-based approaches. The West Africa Trade and Investment Hub is a one-stop shop that partners with banks/financial institutions to provide financial support and business development services, capacity building, and best practices with the aim of making businesses viable and export ready, through the African Growth Opportunity Act (AGOA).
One of the largest economies in West Africa, Nigeria has seen significant surge in Energy usage. The government has been looking at alternate sources of energy such as Solar & Waste-to-Energy plants which has led to the inception of green power projects across the region. Barika and Kraft has been actively participating in this sector with a multitude of projects securing Seed-funding under the patronage of Barika and Kraft.
Apart from Nigeria, another nation observing a significant spike in economic prosperity is Ghana.
Beijing refutes West claims of ‘Chinese debt trap’ in Africa (Al Mayadeen English)
China hits back at the US claims that it is setting up a debt trap in Africa as Beijing grows closer to the African continent.
The Western claims of Beijing setting up a “Chinese debt trap” in Africa are baseless and irresponsible, Chinese Foreign Ministry spokesperson Wang Wenbin said on Thursday. Wang provided a list of data to show the win-win nature of Sino-African cooperation while criticizing Western officials and media over their attempts at driving a wedge between China and developing nations by using false claims. Asked about claims of a “Chinese debt trap” raised and pushed by US Secretary of State Antony Blinken during a trip to Africa, Wang said at a regular press conference on Thursday that such claims were only used by US and other Western officials to shift responsibility.
According to data from the World Bank, at the end of 2020, bilateral creditors held 26% of the foreign loans of 82 low and medium-income countries, while commercial creditors and multilateral creditors made up 40% and 34%, respectively. China held less than 10% of the total external debts.
In the newly-added $475.2 billion of external debt in low and medium-income countries between 2015 and 2020, commercial debt from the global financial market accounted for 39%, Wang highlighted, quoting a European Network on Debt and Development survey that showed that 95% of sovereign debt in 31 indebted countries was held by Western financial firms.
Global economy
Developing Countries Trading Scheme: government policy response (GOV.UK)
The Developing Countries Trading Scheme is a major milestone in growing free and fair trade with developing nations. The Developing Countries Trading Scheme applies to 65 countries, offering lower tariffs and simpler rules of origin requirements for exporting to the UK. The scheme helps countries to diversify their exports and grow their economies, while British households and businesses benefit from lower prices and more choice.
The Developing Countries Trading Scheme cuts administrative costs for businesses by reducing more tariffs and bringing more countries in scope of the most generous tariff reductions. It also cuts red tape for developing countries, for example by simplifying rules of origin requirements for the least developed nations. This helps the world’s poorest countries to export to the UK and play a more active part in fast growing global supply chains.
It also helps lower costs for UK businesses, leading to lower prices for consumers across a range of everyday products, by reducing tariffs on imports from low income and lower-middle income countries. Increasing trade and decreasing tariffs is another way the government is supporting businesses and individuals with cost-of-living increases.
The role of trade and investment policies to transition to a circular economy (ITC)
Issues related to acquiring innovative clean technologies and access to finance determine businesses’ ability to adapt in order to maintain business competitiveness. Overcoming these concerns by obtaining resource efficient technologies and strengthening access to finance requires national trade and investment policies designed to build resilient and sustainable economies.
Supporting countries in greening requires a concerted effort at multilateral, regional, and national levels to translate circular economy principles into trade and investment policy frameworks.
At global and regional levels, this entails organizing targeted dialogues and engagements with policymakers, trade negotiators, private sector, civil society, and other stakeholders to consider how the principles of the circular economy could be integrated into trade agreements.
A guide for SME garment manufactures to achieve greater profitability (ITC)
Determining the cost and value of garment manufacturing operations is a challenge faced by all textile and clothing companies, particularly those in developing countries where many small and medium-sized manufacturers remain focused on simple cut and sew operations, providing low value services and producing very basic commodity-type garments.
The new ITC publication, The Garment Costing Guide: for small firms in value chains, helps manufactures, and those that support them, understand the true costs and value of producing clothing beyond simply sewing operations. Manufacturers that provide additional services will be more competitive and take an important step towards becoming a preferred supplier to customers.
Pamela Coke-Hamilton, Executive Director of the International Trade Centre (ITC) explains: “Garment manufacturing has evolved from a simple manufacturing operation into a complex service industry where the actual cut and sewing operations are the simplest and least remunerated tasks. The guide not only explains how to capture and calculate all costs of making a garment, but also offers solutions on how to reduce costs along the full supply chain to increase profit margins for garment manufacturers as well as their customers”.
Consensus will be key to next G20 summit (China Daily)
The meeting of G20 finance ministers and central bank governors in Bali last month-largely overshadowed by discord over the Russia-Ukraine conflict-did not produce a communique at all. And, as it stands, there is little reason to think that November’s G20 Leaders’ Summit in Bali will go any better.
The G20’s host this year is a representative of this more diverse group of major economies. Indonesia understands that strategic patience is essential to build consensus among countries operating from different perspectives and stages of development. After all, it is a member of the highly diverse Association of Southeast Asian Nations, which emphasizes consultation and consensus. Most developing and emerging-market economies view peace and stability as prerequisites to their continued development.
If this year’s G20 summit is to produce any progress, its members-especially the G7 countries-must embrace consultation and consensus.
Emerging-market economies, already shaken by the collapse of the Sri Lankan economy, are bracing for higher inflation, escalating food shortages and increased debt distress. JPMorgan notes that intensifying pressure on external and fiscal accounts is driving a growing number of countries to seek assistance from the International Monetary Fund, or at least to move in that direction.
Amid such far-reaching and interconnected crises, one might imagine that global cooperation would be forthcoming. But there seems to be little appetite to compromise, especially at the G20 level.
The situation is very different within the G7. At 47 years, the G7 has been around more than twice as long as the nearly 23-year-old G20, though it is worth noting that the G7 was the G8 for much of that history. Russia was kicked out in 2014.
This points to a defining characteristic of this older, smaller club: It comprises the Western democracies that have largely dominated the world economy since 1945.
In 2020, the G7 accounted for over half of global net wealth and roughly half of world GDP, despite being home to just 10 percent of the world’s population.
Open Letter to G7 and G20 leaders: resolve global crises to secure our future (Nature)
Related News
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Local news
Didiza asked to intervene in blocking of SA vegetables by Botswana, Namibia (News24)
The SA government needs to urgently intervene in the unilateral closing of their borders by Botswana and Namibia to certain fruits and vegetables from South Africa, claiming it is to protect their local producers. Since the beginning of the year, for example, Botswana has blocked SA exports of tomatoes, carrots, beetroot, potatoes, cabbage, lettuce, garlic, onions, ginger, turmeric, chilli peppers, butternut, watermelons, sweet peppers, green mealies and fresh herbs.
This unilateral action is against trade agreements with South Africa, including the Southern African Customs Union (SACU) agreement, according to agricultural body Agri SA. Botswana, Eswatini, Lesotho, Namibia (BELN) and SA form the SACU, meaning they are supposed to have a common external trade border with free flow of goods within the union.
The situation has become “untenable” and requires government intervention urgently to prevent the SACU agreement from being nothing more than a “lame duck”, Agri SA executive director Christo van der Rheede writes to Minister of Agriculture, Land Reform and Rural Development Thoko Didiza and Minister of Trade, Industry and Competition Ebrahim Patel in a letter dated 8 August and seen by Fin24. He claims Botswana and Namibia are the main culprits.
“These countries have cited a need to protect local production as the motivation for these border closures,” Van Rheede tells Didiza. “We have noted that, while Botswana and Namibia close their borders to vegetables from SA, they remain happy to send their like products back into SA, and at predatory prices to boot.”
Traders stare at losses as gold coins boost Zimbabwe dollar (Engineering News)
Not everyone is happy about the Zimbabwean dollar’s gains. Black market traders have been left reeling as measures taken by authorities, including new gold coins, to support the embattled local currency dry up excess liquidity and erode arbitrage opportunities.
How Kenya’s trade deficit hit a record Sh666bn in first five months of 2022 (Business Daily)
Costly imports of fuel, edible oils and fertiliser widened Kenya’s trade deficit to a record Sh666.2 billion in the first five months of the year, piling pressure on the shilling and straining household budgets due to rising inflation.
The 23 percent or Sh189 billion jump in the import bill to Sh1.02 trillion is largely a result of the ongoing Russia-Ukraine conflict, which has disrupted global supply chains of critical commodities such as petroleum fuels, metals, fertiliser and grains.
Data from the Central Bank of Kenya (CBK) shows that this growth in imports has significantly outstripped that of export earnings, which in the period grew by Sh41 billion to Sh354 billion. The ballooning trade deficit is eating into the country’s foreign reserves, which are critical in supporting the stability of the currency.
In addition to the supply disruptions caused by the conflict, the shilling has also felt the heat of higher dollar demand and is now trading at an all-time low against the greenback. Importers require more shillings to acquire dollars to pay their suppliers, resulting in imported inflation.
Sh40bn terminal shapes Mombasa port battle (Business Daily)
Before the launch of the new Sh40 billion Kipevu Oil Terminal in Mombasa, the old facility that had been in existence for six decades could only handle 35,000 tonnes of cargo at a time. It could also accommodate one vessel at a time of upto 120,000 dead weight tonnage. But the new offshore terminal has changed the fortunes of the Mombasa port, which is facing increased threat from neighbouring ports in Tanzania and Djibouti, given that it will handle four vessels of up to 200,000 dead weight tonnage at a time. This means that at optimum, in seven days, it would handle what the old port would do in a month.
The new facility promises to ease pressure on the Mombasa port that had been aggravated by increased demand in Kenya and the region.
Kenya says it will invest in the energy and petroleum sector, to create a reliable and efficient energy supply through oil exploration and oil handling facilities. “Over the last few years, the region has been making a significant effort towards the exploration and mining of oil. Soon the region will join the oil-producing and exporting countries of the world,” President Kenyatta said. He said the need for petroleum products has continued to increase in the region due to economic growth and development through rapid industrialisation.
“The modern terminal is faster and will have various benefits to the economies of the region. Key among them include reduced vessel turn-around time from four to two days, with a significant reduction in demurrage costs. On the other hand, it is expected to reduce freight costs owing to improved cargo handling capacities and leverages associated with larger economies of scale,” said Mr Kenyatta.
Truckers resume normal regional operations after elections hitch (Business Daily)
Truckers have resumed normal operations after the flow of goods between Kenya and the neighbouring countries was interrupted this week with the announcement of presidential results on Monday. The chaos and uncertainty that had been witnessed in some pockets of the country saw truckers withdraw from the roads, paralysing trade along the Northern Corridor. Chief executive officer of the Kenya Transporters Association (KTA) Mercy Ireri said they are now fully operational and that the flow of goods to either side of the border is back to normal.
“We have been at near zero in regard to road transport from the Port of Mombasa to the border towns of Malaba and Busia in the last couple of days, but now the situation has come back to normal,” said Ms Ireri. Cargo trucks destined for Kenya via the Busia border were being diverted through Mumias road in Kakamega County to Bungoma and Eldoret on their way to Mombasa.
Angola to start talks on trade deal with EU in bid to diversify from oil (SowetanLIVE)
Angola and the European Union are set to start talks for a trade deal this year after EU and African partners approved a request from the oil-producing nation to join a regional trade bloc, according to an EU document and an official. The green light to start negotiations came in late July, an EU document shows, shortly before the southern African country holds general elections next week. “We are now in a position to open formal negotiations, but there is not yet a date agreed with Angola. We expect this to happen in the last quarter of this year,” an EU spokesperson told Reuters.
The possible deal would likely increase the export of Angolan products to the EU, and possibly reduce the dominance of oil which currently accounts for nearly all exports by value.
With the boost in trade expected from the deal and EU’s increased need of fuel amid the energy crisis caused by the war in Ukraine, Angola might also export more oil to the 27-nation bloc. Currently China is by far its largest customer, despite oil now faces no import duty in the EU.
Under the deal, EU products will also access the Angolan market with lower duties - an advantage for local consumers but a risk to domestic industries if they do not invest to remain competitive.
Ghana: Local poultry sector nears extinction (The Business & Financial Times)
Over 400 poultry farms in the country have had to shut down operations due to multiple reasons – including high production cost mainly driven by the price of raw materials and feed cost, the Ghana National Association of Poultry Farmers (GNAPF) has indicated. Other reasons such as the prevailing interest rate, surge in chicken imports, bird-flu and cost of labour have been mentioned by the association as key drivers of the industry’s collapse.
“The current situation is dire, and our farmers are losing millions through the closure of their farms. We are at the emergency level now. As it stands, 70 percent of existing farms nationwide are empty,” Victor Oppong Adjei, President of the GNAPF, told the B&FT.
Cameroon Says Floods Disrupt Cross Border Trade with Nigeria (VOA)
Cameroonian authorities say record flooding on its western border with Nigeria has killed at least six people, washed away homes, and destroyed thousands of tons of food meant for export. The floods destroyed a 36-meter-long bridge on the River Momo, keeping hundreds of merchants and commuters stranded on both sides of the river. Momo, an administrative unit where Widikum is found, is a production basin for palm oil, maize, potato, tomatoes and vegetables.
Cameroon’s National Observatory on Climate Change last month predicted that floods and landslides would hit many Cameroonian towns and villages including Widikum.
Senegal and Egypt Emerge as Potential LNG Exporters to Europe (The Maritime Executive)
As Europe struggles to gain a greater degree of energy independence and replace energy historically imported from Russia it is looking to new parts of the world to become suppliers. In a rather unique turn of events, some African countries are promoting their rich hydrocarbon deposits as a solution. It could become a win-win situation for Europe desperate for new sources and for the African nations that are hungry for foreign currency to support their sagging economies.
African nations that historically would not have been thought of as potential suppliers to meet Europe’s energy needs are emerging as leading candidates. Senegal in West Africa is moving rapidly to develop its liquefied natural gas operation to become an exporting nation. Similarly, European companies have projects under development in Mozambique while Egypt is working to boost its operations after the discovery of the Mediterranean’s largest deposits of LNG.
African trade and integration
Uniting Africa under one payment system slow but steady process – Ogbalu (Monitor)
In July, the Pan-African Payment and Settlement System (PAPSS) marked three years since it was launched on July 7, 2019, in Niamey, Niger. The PAPSS chief executive officer, Mike Ogbalu III talked to Bamuturaki Musinguzi about the achievements, prospects and bottlenecks.
Why was the Pan-African Payment and Settlement System (PAPSS) developed?
A: The barriers, or challenges to increased intra-African trade include lack of adequate trade information, structural rigidities, historical trading patterns (historical ties with former colonial countries), poor trade facilitation and regulatory issues, poor implementation of regional commitments, poor state of trade related infrastructure (barriers to the movement of goods), and fragmented payment, clearing and settlement infrastructure.
PAPSS was adopted in July 2019 in Niamey, Niger, by the African Union heads of state as the payment and settlement system to support the implementation of AfCFTA. It is a financial market infrastructure that has been developed and initiated through a collaborative effort of the AfCFTA Secretariat, Afreximbank and the African Union Commission.
How is PAPSS being implemented across the continent?
A: The journey started with a pilot phase in the West African Monetary Zone (WAMZ) where central banks of Nigeria, Ghana, Liberia, Guinea, the Gambia, and Sierra Leone successfully performed live transactions between each other. We chose this region because it presented decisive arguments for a pilot exercise, before considering a deployment of the system throughout the continent: six countries with different currencies, speaking English and French and carrying out a substantial volume of cross-border transactions.
With this successful pilot-run, we are now ready to bring any central banks and commercial banks on board. We expect to be in the five regions of Africa before the end of 2023, all central banks signed up by end of 2024 and all commercial banks by end of 2025.
Traders fear Kenyan goods could face stiff competition in AfCFTA (The East African)
The KAM, in their latest survey titled Implication of the African Continental Free Trade Area on Kenya’s manufactured products and its impact on Kenya’s trade, reveals that the dwindling country’s competitiveness due to a high cost of doing business, bureaucratic policy and regulatory environment could inhibit its ability to take advantage of the AfCFTA.
Kenya’s manufacturers are worried about losing out on the benefits of the African Continental Free Trade Area (AfCFTA), due to a high cost of production that may hurt their competitiveness. The Kenya Association of Manufacturers (KAM) has tallied local costs of production to be higher than the continental average, meaning their goods may face stiff competition in trading across Africa. Kenya’s global competitiveness index is about 55 percent, while it ranges between 35 to 60 percent in Africa, an indication of a constrained business environment.
“There is a positive change for Kenya’s export to Africa under 90 and 100 per cent tariff liberalisation for South Africa, Eswatini, Ghana, Morocco, Togo, Côte D’Ivoire, Botswana, Namibia, Senegal and Tunisia,” the report says. ”Change is negative for Kenya’s exports to Zambia, Rwanda and Madagascar.”
The report also reveals that the impact of tariff liberalisation under the AfCFTA on Kenya’s economy is estimated to grow imports by five per cent at 90 per cent tariff liberalisation, and at 11.4 per cent at full liberalisation. ”There are strong value chains in agro-processing, textile and garment, footwear, mining, leather, rubber and plastic sectors,” it says.
Let’s Fully Utilize Trade Agreements & Opportunities – Urges EABC Chairperson Angelina Ngalula (EABC)
“The EAC bloc should boost its transactions under the regional and international trade agreements and opportunities of African Continental Free Trade Area (AfCFTA), African Growth and Opportunity Act (AGOA), Economic partnership agreement,” said EABC Chairperson Angelina Ngalula at the High-Level Business Dinner in Arusha. Statistic show intra-EAC trade is below 20%, intra-African exports is 18% of total exports, EAC exports to AGOA valued at USD. 5.26 Billion while EAC exports to EU stood at USD.2.67 billion (ITC,2021).
EABC Chairperson Angelina Ngalula said that despite the agreements & opportunities East Africans have not fully utilized these agreements as trade is still fractional due to low productive capacity, fragmentation and infrastructure challenges.”With the AfCFTA, there are no boundaries of doing business in Africa, but the EAC bloc should be well-prepared to export competitive professional services and skills to the continent,” said Chairperson Angelina.
On his part, Mr. John Bosco Kalisa, EABC CEO said EABC with support from GIZ developed a Barometer on East African Trade in Services to gauge the growth of the service sector in the EAC. He expounded that the EAC region exported services worth USD 12.9 billion against USD. 933.6M worth of imports globally in 2019.
Market East Africa as a Single Investment Destination – Urges EABC Chairperson Angelina Ngalula (EABC)
EABC Chairperson Angelina Ngalula has called upon the Governments of the EAC Partners States to market East Africa as a single investment destination by showcasing and reinforcing the bloc’s comparative and competitive advantage.
Improving the quality & competitiveness of products and services is one of the top priorities Chairperson Ngalula seeks to spearhead in order to reposition East African business to seize opportunities availed by the 1.3 billion African Continental Free Trade Area (AfCTA). Other priorities are improving the performance of EAC transport corridors and eliminating persistent Non-Tariff Barriers.
On his part, Mr. John Bosco Kalisa EABC CEO said “EABC is a core partner of the EAC regional integration agenda as outlined in Article 127 of the Treaty.” He urged Governments to liberalize EAC airspace to reduce the cost of tickets & cargo freights as well as boost the volume of air cargo exports outside the region.
Security, trade high on the agenda as SADC leaders meet in Kinshasa (Africanews)
Leaders of Southern African nations are meeting in Kinshasa for their 42nd summit. The leaders are expected to review the progress made towards achieving closer integration and deepening regional trade. The summit will be held under the theme “Promoting Industrialization through Agro-Industry, Mineral Resource Enrichment and Regional Value Chains for Inclusive and Resilient Economic Growth.
Communiqué of the 42nd Ordinary Summit of SADCS Heads of State And Government
How a $260M bridge negotiated Africa’s most unusual border (CNN)
Today, the pontoons sit ashore, mercifully redundant. You might spot them while crossing the 923-meter (3,028-foot) long Kazungula Bridge, a $260 million project co-financed and co-operated by Botswana and Zambia, that a year into service has already transformed this southern African trade artery. The bridge was conceived to speed up travel along the Southern Africa Development Community (SADC) North-South Corridor, a route historically beset with costly border delays.
The bridge opened in May 2021 but was over a decade in the making, explains Kazungula project engineering manager Isaac Chifunda.
“Africa was massively represented on this project,” says Chifunda. Although construction was overseen by South Korean company Daewoo E&C, the team was multinational, he says, and raw materials including cement, steel and aggregates came from across southern Africa. As a significant investment for Zambia and Botswana, the bridge is packed with technology to ensure its long-term future.
Africa Needs Investments, Not Food Support—Adesina (Business Post Nigeria)
A new report from Climate Policy Initiative (CPI) has said that Africa is getting just 12 per cent of the finance it needs to manage the impact of climate change. It, however, raised pressure on rich nations to do more in the run-up to global climate talks at COP27 in November. CPI said that around $250 billion is needed annually to help African countries move to greener technologies and adapt to the effects of climate change, yet funding in 2020 was just $29.5 billion.
“Harnessing climate investment opportunities in Africa will require innovation in financing structures and strategic deployment of public capital to ‘crowd-in’ private investment at levels not yet seen,” the CPI report said.
Time to fix seed systems to tackle Africa’s hunger crisis (Mail & Guardian)
Between 2008 and 2018, Africa suffered an estimated $30-billion in losses caused by a decline in crop and animal production, as a result of floods, diseases, droughts and other shocks, according to the United Nations Food and Agriculture Organisation. With such increasingly unpredictable weather patterns, a result of the effects of climate change, and frequent pest and disease outbreaks, farmers must take any measures to enhance yields. This includes access to and planting quality seeds. Seeds significantly influence the quality and quantity of farmers’ output. The African Union Commission’s Seed Sector in Africa: Status Report and Ten-year Action Plan (2020-30) indicates that good quality seeds can potentially increase overall productivity by nearly 40%.
Clearly, it is critical that efforts to put quality seeds in the hands of smallholder farmers, who represent 70% of Africa’s agricultural production, are accelerated. A key measure to support this is the formalisation of seed systems being rolled out in many African countries by instituting legislation.
Africa Has a Food Shortage of Over 30 Million Metric Tonnes (Morocco World News)
UK to slash import duties for 65 countries, but SA does not qualify | Fin24 (Fin24)
The UK will be extending its import tariff cuts to hundreds more products such as clothes and food from 65 developing nations, but South Africa does not qualify for the benefit.
The Developing Countries Trading Scheme (DCTS) comes to effect in January and replaces a previous scheme - the Generalised System of Preferences (GSP), Reuters reported. The new scheme will apply to existing beneficiaries of the GSP – these include 47 countries in the Least Developed Countries Framework, such as Angola, Malawi, Mozambique and Zambia. It will also apply to 18 additional countries – classified as low-income and lower-middle-income countries by the World Bank.
According to a policy paper issued by the State Secretary for the UK’s Department of International Trade, Anne-Marie Trevelyan, the scheme will offer lower tariffs and simpler rules of origin requirements for products exported to the UK. This will make it easier for the world’s poorest nations to export to the UK. BBC reported that the scheme will affect 99% of goods exports from Africa.
South Africa is classified as upper-middle income by the World Bank, which the scheme does not apply to. Nor does the scheme apply to low and lower-middle-income countries with a free trade agreement with the UK. If countries are considered least developed, they can choose to trade with the UK under the DCTS or on free trade agreement terms.
Meanwhile, the UK has halted development aid payments – that are considered non-essential – due to concerns of overspending, Bloomberg reported. It is however, prioritising humanitarian support for Ukraine.
Nine programs for China-Africa co-operation that have yielded fruitful results (The Zimbabwe Mail)
Since its establishment in 2020, the Forum on China-Africa Cooperation (FOCAC) has become an important platform for collective dialogue, an effective mechanism for China-Africa practical cooperation, and a pacesetter for international cooperation with Africa in the new era. At the 8th Ministerial Conference of FOCAC last year, President Xi Jinping put forward for the first time the “spirit of China-Africa friendship and cooperation”. He set forth “four-point propositions” on building a China-Africa community with a shared future in the new era, and announced the “Nine Programs” for practical cooperation with Africa, which have set a new milestone in the history of China-Africa relations. Over the past year, the “Nine Programs” have reaped rich early harvest.
Third, the trade promotion program has made great strides forward. From January to June this year, China-Africa trade volume registered US$137.38 billion, up by 16.6% year-on-year, of which China’s exports to and imports from Africa increased by 14.7% and 19.1% respectively. China has opened “green lanes” for faster export of African agricultural products to China. As a result, agriculture products like the Rwandan stevia, South African fresh pears and soybeans and Zimbabwean citrus have gained access to the Chinese market. China has signed exchange of letters with Togo, Eritrea, Djibouti, Guinea, Rwanda, Mozambique, Sudan, Chad and Central Africa among other LDCs on expanding the scope of zero-tariff treatment to 98% for products exported to China, which covers more than 350 kinds of African products.
Fourth, the investment promotion program is growing against the odds. From January to June this year, China’s industry-wide direct investment in Africa amounted to US$1.74 billion, growing by 1.5% against all the odds. The turnover of Chinese enterprises’ contracted projects in Africa amounted to US$ 18.32 billion, an increase of 8.4% year-on-year. The two sides have set up a China-Africa cross-border RMB center in the pioneering zone for in-depth China-Africa trade and economic cooperation, in an effort to explore RMB settlement for China-Africa trade, logistics and industrial cooperation. China has continued to provide aid in the form of grants, interest-free loans and concessional loans to help African countries achieve independent and sustainable development.
Fifth, the digital innovation program is thriving. The first China-Africa Conference on Innovation Cooperation witnessed signing of 15 China-Africa science and technology cooperation projects. In an effort to expand Silk Road e-commerce cooperation, China and Africa have jointly made a success out of the “Quality African Products Online Shopping Festival”, where coffee from Ethiopia, chili sauce from Rwanda, black tea from Kenya and other high-quality products from a total of 23 African countries were well received among Chinese consumers.
Participants in AfriCaribbean Trade and Investment Forum to benefit from Barbados visa waiver - African Export-Import Bank (Afreximbank)
African participants in the first-ever AfriCaribbean Trade and Investment Forum (ACTIF2022) taking place in Bridgetown, Barbados, from 1 to 3 September will benefit from a decision by the Government to waive visa requirements for passport holders from 24 African countries who would have needed visas to enter the country.
ACTIF2022, which is being held under the theme “One People, One Destiny: Uniting and Reimagining Our Future”, is being hosted by the Government of Barbados and the African Export-Import Bank (Afreximbank).
The 24 African countries to which the visa waiver decision applies are: Algeria, Angola, Benin, Cape Verde, Central Africa Republic, Chad, Comoros, Republic of Congo, the Democratic Republic of the Congo, Côte d’Ivoire, Djibouti, Egypt, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Madagascar, Mozambique, Namibia, Niger, Sao Tomé and Principe, Sudan, South Sudan and Togo.
Kay Sealy, acting Permanent Secretary of the Barbadian Ministry of Foreign Affairs and Foreign Trade, said: “The move to add these countries to Barbados’ visa waiver list is intended to enhance business and investment opportunities, and facilitate the ease of travel for tourists.”
Global economy
New digital tools to help maritime economies overcome trade disruptions (Daily Cargo News)
THE UNITED Nations Conference on Trade and Development is launching new digital tools to help maritime countries and ports reinforce supply chains against disruptions. UNCTAD said vulnerable economies in particular had been impacted by extreme weather events, the war in Ukraine and other crises beyond the pandemic adding pressure to global supply chains. “Ensuring the integrity and effective functioning of maritime transportation is critical for all economies, especially small island developing states and least developed countries,” UNCTAD said in a statement.
“These vulnerable economies depend heavily on maritime transport networks for their livelihoods and access to the global marketplace. “Moreover, they are already burdened by disproportionately high transport costs and low shipping connectivity, which make their trade uncompetitive, volatile, unpredictable and costly.”
In light of the consequences felt around the world, UNCTAD has launched a new website to promote “resilient maritime logistics in the face of disruptions”.
These economies are set to lead shipping’s green transition (WEF)
Shipping accounts for close to 3% of global greenhouse gas (GHG) emissions. The latest IPCC reports have shown a pressing need to decarbonize all sectors, including heavy industry, and align with the goal of no more than 1.5°C of warming outlined in the Paris Agreement.
The International Maritime Organization (IMO), through its initial Greenhouse Gas Strategy, aims to halve shipping emissions by 2050, compared with 2008 levels. As the industry seeks to raise climate ambition and align with science-based climate targets, there has been a push for full sector decarbonization by 2050.
This ambitious goal will require huge amounts of scalable zero-emission fuels — that means it also constitutes a major economic opportunity for countries with the potential to produce, bunker and export this kind of fuel, including many developing and emerging economies.
Food security issues worsen globally, says World Bank (ESI-Africa)
In their latest Food Security Update the World Bank highlights that domestic food price inflation remains high around the world. High inflation continues in almost all low- and middle-income countries and the share of high-income countries with high inflation has increased sharply.
The most affected countries are in Africa, North America, Latin America, South Asia, Europe and Central Asia. In real terms, food price inflation exceeded overall inflation (measured as year-on-year change in the overall CPI) in 81% of the 153 countries for which food CPI and overall CPI indexes are both available.
This poses a threat to global food security as the planting season starts. “So far, the war in Ukraine has mostly affected countries importing wheat and corn. But many countries, including some major food exporters, are net fertiliser importers.
“Persistently high fertiliser prices may spread to a broader variety of crops including rice, a staple which has not yet seen war-related price hikes. We must act now to make fertilisers more accessible and affordable to avoid prolonging the food crises,” said Voegele.
He goes on to discuss three policy proposals for making fertilisers more accessible and affordable: Countries should lift trade restrictions or export bans on fertilisers; Fertiliser use must be made more efficient, for instance by providing farmers with appropriate incentives that do not encourage overuse; and Invest in innovation to develop best practices and newer technologies that may help increase output per kilogram of fertiliser used.
Importance of cryptocurrency in today’s Era (Ripple Coin News)
Bitcoin tends to have an enticing use case in cross borders remittance. By utilizing cryptocurrencies as a fundamental medium to transfer funds internationally, senders and recipients can now complete the exchange without high remittance fees.
Cryptocurrencies seem to be the utmost awaited revolution in international exchange, and global trade will become a piece of cake after the mass adoption of these digital currencies. Yet the question remains, what are the strengths and threats of cryptocurrencies in terms of international exchange?
Several people have recently explored ingenious ideas involving different altcoins for international exchange. However, digital currencies, which serve as payment and transfer mediums between countries, are often overlooked as a solution to increase overall economic growth.
However, it is difficult to ignore that trade facilitation acts as a catalyst that brings benefits and value to various parts of the world. The World Trade Organization (WTO) claims that around half a billion people save on annual costs from trade in goods and services. Statistics also indicate that trade volume has doubled since the 1980s due to the globalization of the economy and trade facilitation.
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Local news
Customs duty decision delays are hampering billions of rands in investment, says advisory (Engineering News)
Consultancy XA Global Trade Advisors says billions of rands in revenue have been lost to the fiscus owing to long overdue customs duty decision-making, while also having more far-reaching implications for industries and trade and investment. If all of the cases that required changes to customs duties had been finalised – and granted – on time, it would have ensured a collection of R1.25-billion by now, cumulatively, for every case that is long overdue.
Some cases have remained unresolved as long as three years, but XA Global founder and CEO Donald MacKay says tariff investigations should take four to six months, as per the rules of the International Trade Administration Commission (Itac) which is South Africa’s authority on goods movement across borders.
MacKay and his team conducted research into delays experienced with customs decisions at Itac and the ministries of Finance and Trade, Competition and Industry, and found that the average days taken for tariff investigations has increased to an average of 320 days since 2015, compared with an average of 191 days between 2009 and 2014.
Reclamation Group says scrap metal prices to stabilise over 18 months even with an export ban (Engineering News)
Recycling company The Reclamation Group says that, on account of the already installed increased consumer capacity and the advent of new melting facilities already in the pipeline, over the next 12 to 18 months, a free-market situation will once again prevail within the borders of South Africa, which could and should drive scrap metal prices back to current levels and perhaps even beyond.
Like most commodities, pricing drivers for scrap metal are determined by the economic principles of supply and demand. Initially, the short-term excess could drive prices lower, but not lower than a level where it is no longer commercially viable to collect scrap metal, as the consuming industry cannot afford for the flow of scrap to dry up, adds The Reclamation Group chairperson Dave Kassel.
Further, the company highlights some of the good proposals set out in the Department of Trade, Industry and Competition’s (DTIC’s) recently proposed scrap metal export ban policy, including that an enhanced registration system and improved monitoring, policing and law enforcement will help to address the theft of and trading in stolen scrap metal.
The proposed policy will also support the supply of scrap metal to local industry at affordable prices, as well as the creation of downstream industrialisation or beneficiation, in line with the objectives of the Steel Master Plan. The policy would also contribute to the rebuilding of the South African economy, the company states.
Miraa exports to Somalia hit Sh1bn in three weeks (Business Daily)
Kenya has exported miraa worth Sh1 billion to Somalia in under a month since the resumption of trade coming as a major reprieve to growers who had been hit hard when Mogadishu imposed a ban in 2019.Head of Miraa Pyrethrum and other Industrial Crops Felix Mutwiri says the country has so far exported 375 tonnes of the stimulant in the last three weeks. Earnings were, however, slowed down by caps on the tonnage that Kenya is allowed to export to Somalia. Previously, Nairobi was allowed to sell 40 tonnes every day but currently can only ship a maximum of 19 tonnes in the same period.
“We have so far exported 375,000 kilogrammes (375 tonnes) since we resumed exports on July 24,” said Mr Mutwiri. The directorate has licensed nearly 48 traders for export of the commodity under the new miraa laws. Anyone who exports the crop without registration and a license is liable to a sentence of up to three years or a fine of up to Sh5 million under the new regulation. The directorate started issuing export licenses to miraa traders in July after bilateral talks between Kenya and Somali presidents resolved a long-standing trade tiff.
Kenya eyes US companies dumping China in Biden deal (Business Daily)
Kenya is vying to become the manufacturing hub for American companies seeking to relocate or diversify out of China in fresh trade talks Washington opened with Nairobi in July. Industrialisation and Trade Cabinet Secretary Betty Maina said Nairobi will be negotiating a deal that will lay ground for a manufacturing base for the US firms with a key focus on tech factories.
Tanzania’s economy grows by 5.4 percent (The Citizen)
Despite the spillover effects of the war in Ukraine and lingering impact of Covid-19, Tanzania’s economy grew by an impressive 5.4 percent in the first quarter of 2022.This puts the country on track to achieving its 2022 growth target of 4.7 percent. Initially, the government had set itself a target of boosting economic output by 5.5 percent.
However, with the Ukraine war, which saw prices of fuel, cooking oil, wheat and fertiliser, among other essential items, rise due to disruptions of supply chains after the US and its allies imposed sanctions on Russia, Tanzania reviewed its GDP growth targets. Finance and Planning minister Mwigulu Nchemba said in Parliament in June that the country has revised its real GDP growth rate for 2022 to 4.7 percent. But latest data by the National Bureau of Statistics (NBS) shows that Tanzania’s quarterly GDP was at Sh34.9 trillion in the period from January to March, an increase from Sh33.1 trillion that was registered during a similar period last year.
Economist Humphrey Moshi said the positive momentum from the key economic activities coupled with government drive to foster investment ensures the achievement of 4.7 percent growth target and even higher.
Zambia pushes for innovation in agriculture to accelerate food security (Farmers Review Africa)
Zambia’s hosting of the 4th Mid Year African Union summit hosted in the capital Lusaka last July dubbed: “Strengthening Resilience in Nutrition and Food Security on the African Continent” has instilled a call innovative technologies and become the pivot for sustained food security. Inspired by resolutions from the Africa’s Heads of States and Governments summits in Equatorial Guinea capital, Malabo since 2003 to date coupled by the African Union meeting’s theme, Zambia wants to bolster production using innovations and become the continent’s food basket.
To address climate change and other shocks, President Hakainde Hichilema urges Africa to encourage innovation in member states and consider signing and ratifying the Africa risk capacity treaty and open up assistance channels in planning, preparing and responding to these shocks in a timely and cost-effective manner and redress food insecurity.
“We need to raise the levels of productivity in agriculture, emphasise on value addition through Agro-processing, accelerate research in agriculture, emphasise on and increase support to rural farmers whose livelihoods mainly depend on agriculture.” he said in his address to delegates while calling for reliable transport connectivity.
Diamonds have been at the center of Botswana’s growth miracle for decade - but the urgency to diversify is stronger than ever. Although Botswana’s economy has undergone transformation over the past decades, the shift has been largely into non-tradable services, with limited gains in employment, income equality, and export diversification. In addition, Botswana’s high vulnerability to climate change, which affects all major sectors of the economy, underscores the need to strengthen Botswana’s response to climate factors as a basis for renewed, sustainable growth. A positive growth outlook and steps taken as part of the Coronavirus disease 2019 (COVID-19) crisis response should give the government new impetus to accelerate reforms.
Success in diversifying the economy will depend on the decisive implementation of structural measures to increase private sector participation in nonmineral exports and transformative sectors. The dominant role that the government of Botswana still plays in large parts of the economy, particularly through its footprint as a shareholder in companies in the corporate sector, is a critical constraint that inhibits the entry and success of private sector participants. Gaps in infrastructure, access to finance, and skills are additional key constraints to employment and productivity growth. A coordinated approach to financing entrepreneurship and policies to increase uptake of digital finance can help close the gap. Trade barriers are another key cross-cutting constraint for the private sector, and a greener path for the economy can be unlocked by facilitating improved trade in environmental goods and services (EGS).
Three key recommendations for the energy sector are as follows. The first recommendation is the fast tracking of instruments to facilitate investment in energy infrastructure development, including independent power producer (IPP) licensing, and procurement guidelines and processes. The second recommendation is the enhancement of the institutional capacity and governance model of the Botswana Energy Regulatory Authority (BERA). The third recommendation is the development of credit-enhancement and risk-mitigation strategies and supporting instruments to attract and mobilize private sector investment.
Angola Strengthens Regional Cooperation to foster trade (Energy Capital & Power)
With an agenda to diversify its economy, process more of its raw materials in country and increase trade with its neighbors, Angola has prioritized strengthening regional ties, leveraging global and regional organizations such as the United Nations, the Organization of the Petroleum Exporting Countries, the African Union, the Port Management Association of Eastern and Southern Africa, and the Southern African Development Community (SADC).
The Angolan government seeks to boost refining capacity for crude oil and other associated petrochemicals within Angola to supply an ever-growing SADC market. This it hopes, will not only ensure increased value creation for Angola but will also ensure supply security for Angola and the region as well as help to boost sectors like agriculture and power generation in the region that are dependent on by products like fertilizer and gas.
Nigeria: FG inaugurates committee to ban foreigners from direct trade with farmers (Daily Trust)
The Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, has said the inability to harness the potential of the non-oil sector for meaningful economic growth is why the federal government plans to stop foreigners from direct purchase of farm produce from farmers.
The Federal Executive Council (FEC) had in March approved a memo that would ban foreigners from purchasing farm produce directly from farmers. He said, “The exploitation of farmers by foreigners who come to Nigeria to mop-up agricultural commodities at the farm-gates and in turn offer farmers prices below market value has become a national problem. “The current practice of direct purchases of agricultural commodities at unfair prices by foreigners at our farm-gates poses serious dangers which include: reduction in farmers’ income, declining productivity in the agricultural sector, unemployment and insecurity.” The minister charged the committee to raise the implementation mechanism.
NPA plans new tariff for transshipment, transit cargoes (New Telegraph)
Nigerian Ports Authority (NPA) is planning to come up with a new tariff regime that will encourage transshipment and transit cargoes back to Nigeria. The Managing Director of the authority, Mohammed Bello-Koko, disclosed this in Lagos when the Minister of Transportation, Muazu Sambo, inspected the Lekki Port project.
He stressed that the Authority would procure Vessel Tracking System (VTS) for the Lekki channel and other port locations in the country, stressing that the NPA was in discussions with Lekki Port operators on African Continental Free Trade Agreement (AfCFTA). Bello-Koko added that approval of the minister on the tariff would be sought when concluded, stressing that the operationalisation of the port before the end of 2022 would help Nigeria take full advantages of AfCFTA.
He explained: “We are already in discussion with them on tariff on transit and transshipment cargoes, these kinds of cargoes are sensitive to tariff, it means that it is coming to this port before it gets to final destination. “This discussion is taking place and we would come back to the Honorable Minister of Transportation for necessary approvals that would encourage transit and transshipment cargoes back to Nigeria, this was happening at Tin Can and Apapa on the early days, but before because of the multiple checkpoints on the highway. “If transit cargoes come here, it would be loaded on smaller vessels from the mother vessels and moved to other countries, this would be of economic advantage to Nigeria.”
EU commits to strongly support Nigeria’s reform (WorldStage)
The European Union (EU) has said it was committed to strongly supporting Nigeria’s reform both at the federal and state levels. EU Ambassador to Nigeria and ECOWAS, Ms Samuela Isopi said this on Tuesday in Abuja at the United States Agency for International Development (USAID) State2State inaugural Policy Dialogue Series. The event had as its theme, “Post-State Fiscal Transparency, Accountability, and Sustainability (SFTAS): Incentivising Reforms.”
“At their core, reforms encourage transparency, accountability, fair and efficient distribution of resources and help countries make the most of their human and economic potentials. “For Nigeria, reforms are important in order to capitalise on the country’s many endowments, mineral resources, and human capital, which is especially represented by its young population.
Nigeria to export 99% of goods duty-free to UK from 2023 – High Commission (Businessday)
Develop resilient systems, policies to absorb economic shocks – Prof. Quartey (The Business & Financial Times)
Director of the Institute of Statistical Social and Economic Research (ISSER) at the University of Ghana, Professor Peter Quartey, has urged government to develop resilient systems and policies to absorb some of the economic shocks that are posing difficulties in the country.
He said though the economy will continue to face challenging times for a while, there are prospects ahead depending on how well and smartly government tackles its domestic policies. “We are in challenging times. However, we have to fashion-out resilient systems and policies to absorb some of the shocks. Unfortunately, our economy remains fragile; and therefore we have not been able to accommodate shocks from the global happenings which affect us very well.
African trade and integration
Mene, AfCFTA scribe, urges member-states to domesticate continental trade treaty (Businessday)
African countries have been charged to urgently domesticate the provisions of the African Continental Free Trade Area, (AfCFTA) treaty to fast-track the continent’s economic progress. Secretary-General of the AfCFTA, Wamkele Mene made the call recently in Accra, Ghana at the maiden edition of the Ghana Trade Policy Enlightenment Summit for Foreigners, GaTPES2022. GaTPES2022, which was held under the theme ‘Helping foreign businesses to better navigate the trade policy landscape’, was organised by Ghana’s premier travel company, Standard Travel and Tour, STT.
Mene urged state-parties to the AfCFTA agreement to use its provision to build their economies and transform lives. “The agreement, which is the treaty, needs to be translated into laws; and those laws are then used by the business person in order to do business, and to put money in the pockets of the business person, and to put money in the economy of the country at large,” Mene stated.
AfCFTA post implementation impact on tax revenue mobilisation (The Business & Financial Times)
Experts adopt report recommendations to implement regional industrial policies (UNECA)
Experts from the Economic Commission for Africa (ECA), Sub-Regional Office for Southern Africa (SRO-SA) and the Government of Zambia held a two-day National Action Planning workshop from 10th to 11th August 2022 on the alignment and harmonization of regional and national frameworks on industrialization. The major objective of the event was to develop action plans on promotion and implementation of regional and national industrialization policies for inclusive and sustainable development in Southern Africa.
Tracking gender progress in SADC – as region launches gender and development monitor (SADC)
SADC Member States using the Proportional Representation electoral system combined with quotas have a higher representation of women in Parliament, while those using the First Past The Post system produce the least desirable results. This is one of the key findings of the SADC Gender and Development Monitor 2022 that was launched here in Kinshasa, the Democratic Republic of Congo ahead of the 42nd SADC Summit of Heads of State and Government scheduled for 17-18 August.
According to the SADC Gender and Development Monitor 2022 using official data submitted by member states, Eswatini and Botswana are at the bottom of the SADC regional gender table in 15th and 16th place and have the lowest representation by women in the National Assembly with just 12.2 percent and 11.1 percent respectively.
The SADC Executive Secretary, His Excellency Elias Magosi said gender equality in the region is anchored in the Regional Indicative Strategic Development Plan (RISDP 2020-2030) as well as other regional documents such as the SADC Gender and Development Protocol that was revised and amended in 2016. The SADC Gender and Development Protocol is an instrument for gender equality and women’s empowerment in SADC Member States.
Blinken attaches security, rights to conditions for trade with Africa (The East African)
Washington says it is interested in supporting trade and environmental conservation in the Democratic Republic of Congo and Rwanda, as long as both countries can tie loose ends on security and civil liberties. Last week, US Secretary of State Antony Blinken toured Rwanda and DR Congo, where he raised the matter of the M23 rebels and allegations that Kigali has funded the group to attack civilians and military bases in DR Congo. Kigali denies the charge.
At a joint press briefing last Thursday with Vincent Biruta, Rwanda’s Foreign Minister, Blinken said Washington supports “African-led mediation efforts” that are being led by Kenya and Angola, to bring peace, security, and stability to the eastern Congo. He said the funding of rebel groups should stop.
DR Congo Foreign Trade Minister Jean-Lucien Bussa said the DRC’s decade long exclusion from Agoa was a punishment. Bussa cited more than $623 million in exports to the US, mostly agricultural products, in 2010, compared with just $21 million in 2019 at the height of the ban. “This trade between the DR Congo and the US amounted to about $100 million during the exclusion while Angola trades over $2 billion with the US state, South Africa around $3 billion and Nigeria trades up to $6 billion,” according to the new DR Congo Chamber of Commerce.
US policy to tackle climate change, boost investments (The East African)
The US says its future co-operation with Africa will focus on trade, and investment to reinvigorate its waning influence on the continent, and has also pledged to boost digital initiatives, fight climate change, and deliver Covid-19 vaccines.US Secretary of State Antony Blinken unveiled the strategy last week in South Africa during his five-day tour of sub-Saharan Africa that included earlier visits to DR Congo and Rwanda. Blinken says Africans must choose their partners well as the US competes for influence on the continent with Russia and China.
“It’s a strategy that reflects the region’s complexity – its diversity, its power and influence – and one that focuses on what we will do with African nations and peoples, not for African nations and peoples,” Blinken said.
But during his trip, Blinken downplayed criticism of the US, that it had ignored Africa over the past decade, lacked a coherent policy on how to engage the region, and was instead now keen on the relationship to counter increasing Russian and Chinese influence.
Google backs Kenyan e-logistics company Lori Systems to help bring digital transport management to the African continent (Business Insider Africa)
Lori Systems, the e-logistics company digitising haulage and providing shippers with solutions to efficiently manage their cargo and transporters, is today announcing an investment from Google. This new investment is the third from Google’s $50 Million Africa Investment Fund, which CEO Sundar Pichai announced in October 2021. It comes off the back of the launch of Google’s first product development centre on the continent, in Nairobi, Kenya, the city where Lori Systems first launched.
Named by the Financial Times earlier this year as Africa’s seventh fastest-growing company, Lori Systems has helped thousands of shippers and carriers move over $10B of cargo across the continent since its founding in 2017. A pioneer in e-logistics in Africa, Lori Systems lowers the cost of goods by eliminating pain points along the cargo journey: seamlessly connecting shippers to transportation, providing shippers with solutions to efficiently manage their cargo and transporters, and digitising their entire transport operations from sourcing transportation to documentation and payments.
According to Knight Frank’s Logistics Africa report, 75% of the price of a product in Africa is attributed to logistics (compared to just 6% in the U.S.). On the continent, logistics operators face a host of problems, from fragmented supply and demand markets to inconsistent pricing, paper documentation and little or no access to financing.
Jean-Claude Homawoo, Lori Systems Co-founder & CPO, comments, “In recent years, the global logistics industry has seen much innovation. However, global supply chains are in dire need of modernisation, with technologies yet to reach a critical scale. On the continent, the African Continental Free Trade Area (AfCFTA) is expected to lead to an 81% increase in intra-African trade, providing a $21.9 Billion opportunity in untapped trade potential that the 54 ratifying countries are hoping to capitalise on over the next five years. Logistics is key to unlocking this opportunity.”
Global economy
A World in Crisis Needs Both Trade and Aid (Inter Press Service)
We are in the toughest period the world economy has faced since the creation of the multilateral system more than three-quarters of a century ago. A quadruple shock of COVID, climate change, conflict and cost-of-living has undone years of hard-fought development gains. As financial conditions tighten, even countries that had seemed on track to prosperity and stability now stare into the abyss of debt distress, fragility and uncertainty about the future. Coordinated, multilateral action is necessary to tackle the crises we face. Both aid and trade have key roles to play in reversing the impacts of this quadruple shock and putting the world back on track to achieve the Sustainable Development Goals.
To guide aid and trade towards a better world, policymakers need to pivot in three fundamental ways. First, make trade greener. Second, make trade more inclusive. Third, make trade more connected.
At the invitation of the Government of Turkmenistan and the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), the Secretary General of the World Customs Organization (WCO), Dr. Kunio Mikuriya, participated through video messages at the Ministerial Transport Conference of Landlocked Developing Countries (LLDCs) in Turkmenbashi, Turkmenistan, on 15 and 16 August 2022. He stressed the importance of Customs and the contribution of the WCO in improving border procedures to support transport infrastructures and associated financing for better connectivity at borders for transit.
In his opening speech, Dr. Mikuriya explained the WCO instruments in support of trade facilitation, such as the Revised Kyoto Convention (RKC), and mentioned the importance of political support, as recently demonstrated by Turkmenistan in ratifying the RKC. He also mentioned other WCO tools such as the Transit Guidelines and the related Compendium of best practices that illustrated Members’ good practices. He expressed the WCO’s commitment to providing capacity building support to implement its standards and working with its partners, in line with the current and future international framework to support LLDCs and the Sustainable Development Goals.
Additional U.S. Contribution to the World Food Programme (US Department of State)
We announced today that, through USAID’s continued partnership with the World Food Programme (WFP), the U.S. Government will contribute more than $68 million to support the procurement, transport, and storage of up to 150,000 metric tons of Ukrainian wheat to address acute food insecurity. This sum represents the latest in more than $5.4 billion in humanitarian contributions from the United States this fiscal year. The purchase of 150,000 metric tons of wheat builds on an initial WFP shipment of 23,000 metric tons of Ukrainian wheat and will support the humanitarian response in the Horn of Africa, where a historic drought is pushing millions of people to the brink of starvation.
While the resumption of exports from Ukraine’s Black Sea ports is a positive step in addressing the needs of food insecure countries, these shipments must continue so that the millions of tons of food trapped in the country can reach markets and help feed the world’s most vulnerable.
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S.African coal exports to Europe surge, shipments to Asia decline (Reuters)
South Africa’s coal sales to Europe rose eight-fold during the first half of 2022 compared with last year as demand for the fossil fuel surged ahead of a ban on Russian coal, Thungela Resources said on Monday.
In April, the European Union announced a ban on coal imports from Russia as part of sanctions for its invasion of Ukraine. The ban came into effect on August 10. Ahead of the ban, European countries, which previously imported 45% of their coal from Russia and have been switching away from expensive natural gas to coal, started to source the fossil fuel from other countries, including South Africa.
We refuse to be bullied by the West, South Africa declares (The East African)
In their talks, Ms Pandor and Mr Blinken touched on extending South Africa’s trading partnership with the United States. At a meeting with visiting US Secretary of State Antony Blinken on Monday, South Africa’s Minister of International Relations and Cooperation Naledi Pandor said her country will only make independent decisions.
Exponential growth on imports from South Africa to the United Kingdom (Business Matters)
If the growth in imports is any indicator of quality, then grapes (both in their liquid and natural form) from the Western Cape are among the best in the world. Over the 2020/21 reporting period, the UK imported 16% more wine products and 15% more grapes than they did the year before. This is according to, South Africa’s official tourism, trade, and investment agency in the Western Cape, Wesgro.
Products profiled on the Cape Trade Portal, an online resource that connects exporters and importers, are not just grapes that have piqued British interest. Beverages, spirits and vinegar, tobacco, vegetable products, and fruits are among the other top performing exports from the province. Other exports such as yachts and paintings saw spike in demand of more than 100% from the British Isles.
The Cape Trade Portal provides overseas buyers access to locally produced premium products and services by Western Cape makers.
South Africa’s ‘tech hub’ draws billions in investment (BusinessTech)
The Western Cape has received R103 billion in Foreign Direct Investment (FDI) in its technology sector, according to the Democratic Alliance, solidifying its place as the ‘tech hub’ of South Africa. Cayla Murray, a spokesperson for the opposition party, said that between 2011 and 2021, the Western Cape has seen billions of foreign investments flow in. According to the Department of Economic Development and Tourism (DEDAT), total FDI has been split across the following sectors: Communications – R55 billion, making it one of the largest contributions to the Western Cape; Renewable energy – R18 billion, approximately 13.36% of total FDI, which is promising news for the country’s energy crisis; Business services – R16 billion, and; Software and ICT services – R13 billion, which has been funnelled into 61 projects across the province.
In a 2021 report from fDi Intelligence, a data division of the Financial Times group, Cape Town was revealed to be one of the world’s fastest-growing regions for foreign direct investment. On top of investment, the province has become a hotbed for startups, with the Cape Town – Stellenbosch corridor containing 450 tech firms employing more than 40,000 people, according to Wesgro.
Zimbabwe’s diaspora remittances hit US$800 million (Bulawayo24 News)
ZIMBABWE’S diaspora remittances reached US$797 million in the first six months of the year, representing a 23 percent increase in the corresponding period last year. An estimated three million Zimbabweans are believed to be in the diaspora and they regularly send money back home to sustain their families. In his mid-term monetary policy statement presented last Thursday, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya said: “Of the total amount, diaspora remittances amounted to US$797 million, a 23 percent increase from US$650 million received during the same period in 2021.” Economic analysts have urged the Government to craft policies that attract Zimbabweans in the diaspora to channel their financial resources beyond domestic consumption as they have a key role in transforming the economy.
Kenya: Horticulture exports fall Sh35bn on poor avocado fruit, lower volumes (Business Daily)
Horticulture earnings dropped by Sh32 billion in the first half of the year on the back of reduced returns from flowers, vegetables and fruits. The Horticulture Directorate says the value of export produce declined by 40 percent to Sh48.4 billion from Sh80.7 billion in the corresponding period a year earlier. The regulator says the value was pulled down by a decline in volume and lower quality avocado in the first quarter of the year as the exported products were not mature enough. This led to low value realised and more rejections of the produce in the world market.
“There was a huge decline in volumes in the review period that pulled down the overall earnings. We also had issues with our avocado,” said the directorate.
Flowers normally make the largest share of the total horticulture export earnings as they are high-value crops. Earnings from horticulture exports hit a historic high last year at Sh158 billion to remain the leading foreign exchange earner in the last two years by staying ahead of tea and tourism.
The good results were boosted by the high demand for Kenyan produce in the world market last year, according to the Directorate of Horticulture.
Prices of sugar up by 18pc on shortage (Business Daily)
A sugar shortage following the closure of some mills for maintenance has pushed prices up by 18 percent in one week. The price of a 50 kilogramme bag is now selling at a high of Sh6,400 from Sh5,400 last week, putting more pressure on the households at a time when they are grappling with high cost of other basic commodities. At the supermarkets, a two kilogramme packet of the commodity is selling at Sh270 in the last two days from a low of Sh239, a price that it has been retailing at for nearly a year.
Head of Sugar Directorate Willice Audi said the directorate is yet to get up-to-date figures in regard to the supply of the commodity in the market but said there was no problem with local supplies from the factories. Kenya cut sugar imports by nearly half in June when compared with the previous month as cane production jumped 11 percent in the review period. Kenya is allowed to import up to 350,000 tonnes of sugar from the Comesa countries to bridge the annual local deficit.
Cargo movement slows down as truck owners avoid roads (The Star Kenya)
Cargo movement between port facilities and final destinations has slowed as truck owners opt to park their vehicles, as they monitor the political environment in the country.
The situation has brought to a near stop of operations by haulers operating within Kenya and the neighbouring countries that use the Port of Mombasa and the Nairobi Inland Container Deport (ICD). This is despite a high number of vessels discharging imports at the Mombasa.
Kenya Transporters Association (KTA) yesterday reported few activities on the Kenya roads and the 1,700 kilometre long Northern Corridor that runs between Kenya, Uganda Rwanda, Burundi and Eastern D.R. Congo.
A stop in the movement also comes with losses where according to the association, a single truck incurs a loss of $200 (about Sh23,880) on average, per day. At least 1,200 trucks cross the Malaba border into Uganda daily with about 300 using the Busia border.
Kenya: Manufacturers, traders top gainers in bank credit (Business Daily)
Trade and manufacturing were the biggest gainers in loans to the private sector, according to data from the Central Bank of Kenya (CBK).The latest financial stability report shows these sectors were most attractive to lenders with trade accounting for 17.1 percent and manufacturing accounting for 15.2 percent of the industry’s loan book in the year to June. Households took 14.9 percent of the loans while real estate accounted for 12.7 percent of the private sector credit in the period under review.
“The economic sectors most attractive to lenders included manufacturing, trade, households, transport and communications and real estate,” the report read in part.
Manufacturing has received more than Sh488 billion in loans cumulatively while trade and real estate got Sh549 billion and 407.7 billion respectively. Lending to households on the other hand was in excess of Sh478 billion.
Uganda scraps tax on imported rice from Tanzania (The East African)
The Ugandan government has scrapped the Value added Tax (VAT) on imported rice from Tanzania. The development comes two weeks after Uganda’s President Yoweri Museveni appealed to all the seven East African Community (EAC) member states to remove all non-tariff barriers, saying they were hampering economic integration and development in the region.
“All rice originating from the Republic of Tanzania and with a certificate of origin according to preferential treatment will effective July 27 attract a 0 percent import duty in accordance with paragraph 1(L) of the third Schedule to the VAT Act and Article 15 of the Protocol establishing the East African Community Customs Union,” said. Assistant Commissioner for Trade at Uganda Revenue Authority, Mr Alexander Rubanda.
Zimbabwe and Zambia held an ad-hoc expert group meeting (AEGM) on the draft policy, legal, regulatory and institutional framework for a Common Agro-Industrial Park (CAIP) and on the assessment study report on maize and dairy value chains in the two countries at Rainbow Towers in Harare.
The objective of the AEGM on the CAIP was to review and validate the draft policy, legal, regulatory and institutional framework to specifically assess its appropriateness for the development and sustainability of the park.
The assessment of the report on maize and dairy value chains in Zambia and Zimbabwe sought to review the findings and recommendations from draft report and provide recommendations for the advancement of the development of the two value chains in and between the two countries.
The maize and dairy value chains are among the nine identified in the pre-feasibility study as anchors of the CAIP and are among the identified strategic value chains in both COMESA and SADC regions. The validated policy, legal, regulatory and institutional framework and the report on the assessment of the maize and dairy value chains will both be finalized taking into account the observations and recommendations of the AEGM.
Nigeria: An Emerging Strategic Partner To Europe’s Energy Transition (Seeking Alpha)
Nigeria could be emerging as a key strategic partner to Europe’s energy transition, and the Franco-Nigerian relationship is at its heart. University research subsidies, funds for economic development, corporate partnerships, and new refinery contracts are only a few of the many increasing ties linking the European Union to Nigeria in a nascent strategic partnership that addresses the heart of both blocs’ economic and political issues.
Oil-rich, natural gas-rich, and equipped with many of the REM resources necessary for sustainable development, Nigeria boasts a large, increasingly urbanized population, as well as a stable financial hub in Lagos and a semi-democratic government with the highest levels of economic prosperity in the continent (with the exception of South Africa). Nigeria’s substantial resource wealth and geographic proximity to Europe make it a very attractive partner for meeting the continent’s energy needs.
Europe’s search for energy independence from Russia has the potential to make it a partner in Nigeria’s economic development. With a massive capital investment base and substantial expertise in the energy market through juggernauts such as Total (TTE) and Shell (SHEL), Europe has the necessary elements to build out the as-yet underdeveloped Nigerian energy sector. This would mean substantial economic benefits for Nigeria, building on its status as a major sub-Saharan trade hub. Due to these opportunities, opening up to trade with Europe has been more of a focus of the Nigerian government. Nowhere are these ties strengthening more quickly than between France and Nigeria.
African trade and integration news
AfCFTA: African Tripartite Business Council Established (KT Press)
Three Eastern Africa regional business councils have officially formed a continental business council, to spearhead the inclusion of private sector policy proposals into the negotiations of African Continental Free Trade Area (AfCFTA) Agreement and the African Tripartite Free Trade Area (TFTA). Under the name African Tripartite Business Council, the council brings together the East African Business Council (EABC), Common Market for Eastern and Southern Africa (COMESA) and Southern African Development Community (SADC). This formation is one of the resolutions from a Consultative Meeting of Regional Business Councils on the Implementation of the AfCFTA Agreement held in Kigali City on August 10-11. “The African Tripartite Business Council will put forward joint private sector policy positions to the AfCFTA Secretariat in Ghana and Tripartite Ministerial Council Meetings in order to accelerate the implementation of the Agreements,” said John Bosco Kalisa, EABC CEO.
Kalisa called upon the Member States from COMESA, EAC and the SADC to ratify the Tripartite Free Trade Area to achieve the threshold of 14 ratifications required to enable the agreement to enter into force. Dickson Poloji, CEO of COMESA Business Council said, “It is important for the private sector to be knowledgeable of the trade instruments of Rules of Origin, Standards and Dispute Settlement Mechanism under the AfCFTA.”
Africa: More Education, Awareness On African Continental Free Trade Area Needed - Survey Reveals (Ghanaian Times)
A survey conducted by the Ghana International Trade and Conference (GITFic) on the African Continental Free Trade Area (AfCFTA) initiative has revealed that increased sensitisation is crucial to ensure businesses reap the benefits of the programme. Ninety per cent of the respondents said the AfCFTA was relevant and more education was needed on the programme. Also, 65 per cent of the respondents indicated that the implementation of the AfCFTA would have beneficial effects on their business.
The survey was to assess the views of the business community in the country with regards to the framework of the AfCFTA and the designation of Accra as the “commercial capital of Africa “.
The Lead Researcher said, he was optimistic that the findings of the survey, which was also aimed at serving key stakeholders in trade and industry, would serve as veritable reference for policy makers and key players in the AfCFTA ecosystem.
42nd SADC Summit… addressing the impact of COVID-19 (sardc | Southern African News Features)
Southern Africa must remain vigilant and united in its fight against COVID-19 to ensure sustainable development in the region. The outgoing chairperson of the Southern African Development Community (SADC) Council of Ministers, Nancy Tembo said this at the Council meeting held ahead of the 42nd SADC Summit of Heads of State and Government set for 17-18 August in Kinshasa, the Democratic Republic of Congo.
Tembo, who is the Minister of Foreign Affairs of Malawi said the SADC region has made significant progress to contain and address the impact of COVID-19, but the pandemic is still a serious concern.
She said it is within this context that the region supported the implementation of its planned activities under the theme of “Bolstering Productive Capacities in the Face of COVID 19 Pandemic for Inclusive, Sustainable Economic and Industrial Transformation”, which was agreed at the previous Summit held in Malawi last year.
The 42nd SADC Summit is running under the theme “Promoting industrialization through, agro-processing, mineral beneficiation, and regional value chains for inclusive and resilient economic growth.” The theme continues with the industrialization trajectory, as SADC has since 2014 held its summits under the industrialization theme.
From FX scarcity to tariff hikes... importers, agents lament rising cost of doing business (TheCable)
Trade is the main engine of development strategies because of the implicit benefits on job creation, expansion of markets, incomes, and facilitation of competition. According to the World Trade Organisation (WTO), the main thrust of trade policy is the enhancement of the competitiveness of domestic industries to stimulate and promote diversified export trade.
Trade policy also seeks to create an environment conducive to increased capital inflows, transfers and adoption of appropriate technologies. But manufacturers, traders, importers, and clearing agents in Nigeria have continued to express worries over the hike in tariffs by the Nigeria Customs Service (NCS), the scarcity of dollars and the lack of basic infrastructure facilities within the nation’s ports.
In April, the Nigeria Customs Service (NCS) migrated from the old version of the ECOWAS Common External Tariff (2017- 2021) to the new version (2022- 2026). The development will see importers paying a 20 duty fee and another 15 percent levy for automotive policy. A statement signed by Timi Bomodi, public relations officer, in the office of the Comptroller-General of Customs, said that the migration was in-line with the World Customs Organisation (WCO) five-year review of the nomenclature, where the contracting parties are expected to adopt the review based on regional considerations and national economic policy.
How logistics can be a boon for African trade (TechCabal)
Logistics is the backbone of international trade; without a working system of moving goods around the world, trade would be hindered. In the African tech ecosystem, investment in tech-enabled transportation and logistics start-ups in Africa has increased since 2015. Last year, a total of $388 million was invested in the sector, and over 30 transport and logistics companies secured funding, making the sector part of the top 5 by funding on the continent.
There are, however, some major challenges that still linger in the ecosystem, such as complex custom processes, heavy import costs and intra-trade barriers, high shipment levels, and port handling charges, among others. At a webinar titled “ What’s the future of logistics in African markets?” on Friday, July 15, TechCabal sought to seek out solutions to this complicated conundrum from the perspective of industry experts.
Carlos Lopes: Africans must not develop new dependencies (African Business)
Carlos Lopes, professor at the University of Cape Town, former executive secretary of the UN Economic Commission for Africa and expert on African economies, policy and geopolitics, sees a future for the continent with new fault lines and new allegiances that are threatening the current consensus. In a wide-ranging interview shortly after the June meeting of the G7, he tells us what he thinks is at stake and what Africa’s position should be.
How can Africa reorganise priorities and shape its strategy when the continent is once again in a crisis and being pressured by all sides?
A: We have evidence of this difficulty in relation to the pressure being exerted to take a position on the Ukrainian issue. Most African countries are not interested in taking a position for obvious reasons. They are familiar with the logic of the Cold War and do not want to enter a game where you have to take a position. Each time this has happened, we have lost a set of partners and become even more dependent on the partner we choose to support. I don’t see the case for it. And I can’t imagine an African country wanting to depend on Russia or China. Similarly, I can’t see African countries wanting to depend only on the goodwill of Western countries either.
That’s why it makes sense to stay somewhat outside this obvious polarisation. This period in which African countries have to navigate in troubled waters will be extremely difficult. Depending on what is done with the AfCFTA, they may or may not be able to count on a much more active and energetic Africa. If we fail to implement the AfCFTA, we will lose a considerable amount in terms of our negotiating hand and we will remain under enormous pressure [given our dependence on external partners].
Many countries are capable of understanding the future of Africa. It is a demographic future and a future of strategic resources for the transitions I mentioned. But it is also a future important partner in terms of trade and a large consumer market of 2bn people.
Finally, what needs to be closely monitored in this period of serious crisis so that African countries do not worsen their predicament?
A: In the short term, we need to focus on three things. First, the negotiations on the debt issue in Africa have gone somewhat round in circles. The three mechanisms that were put in place during the pandemic have not produced much in the way of results. We also need to look at the way the current international institutions are structured. We saw that international bodies were not up to the task of dealing with the latest crises. They don’t have quick and consistent instruments to respond to this kind of crisis. Africans must not accept a new wave of pandemic-like measures. The crisis is getting worse, so we need to question the instruments. I think this discussion has already started.
These 10 Sub-Saharan African countries earn the lowest dollars from their exports (Business Insider Africa)
For most developing countries in Africa, foreign trade is imperative. For one, these countries need to import the many products and services they can’t produce. Also, exporting their products (mostly raw materials) gives them the opportunity to earn much-needed hard currency and bolster their foreign reserves.
For the rest of this article, we shall focus on fifteen African countries that earn the highest foreign exchange through exports of products and services. This is particularly important now that many African countries, from Nigeria to Kenya, are grappling with chronic dollar shortages. Perhaps the answer to the problem is for these countries to find ways to export more products and services so they can earn more forex.
Below are the ten African countries that earn the lowest forex through exports. The list is courtesy of available data obtained from The World. Comoros - $87.7 million; Burundi - $145.1 million; The Gambia - $199.8 million; Guinea Bissau - $205.9 million; Central African Republic - $357 million; Eritrea - $374.8 million; Cabo Verde - $476.6 million; Sierra Leone - $613.1 million; Sudan - $772.8 million; Lesotho - $911.3 million
Zambia can be Southern Africa’s “grain basket”: Experts (Farmers Review Africa)
African countries face great challenges in adapting to climate change to meet growing demand for food with the current drought in East Africa being the latest manifestation of changing weather patterns. But, according to experts, countries such as Zambia, where there is good land and water, have major opportunities to meet food demand by growing agriculture exports and processing their produce.
Zambian farmers can earn substantial returns from increased production. Their production can also alleviate the pressures in countries such as Kenya. “To realise these opportunities, Zambian products have to reach export markets at good prices. For this, Zambia needs competitive cross-border markets and efficient transport and logistics services,” Antony Chapoto, the research director at the Indaba Agricultural Policy Research Institute (IAPRI), Ntombifuthi Tshabalala, an economist at Centre for Competition, Regulation and Economic Development, University of Johannesburg, and Simon Roberts, a Professor of Economics and Lead Researcher, Centre for Competition, Regulation and Economic Development at the same university, noted.
“However, regional grain and oilseeds trade is not working for producers in Zambia or for buyers in East Africa, with huge variances in agricultural commodity prices in Kenya and in Zambia.” They said there “reality check” on the workings of cross-border markets points to regional integration being the key to unlocking massive potential for Zambia to anchor sustainable agricultural growth in Africa. But effective regional integration remains a dream, undermining Zambia’s potential.
Illegal Logging in Africa and Its Security Implications (Africa Center for Strategic Studies)
Illegal logging is a growing feature of transnational organized crime in Africa, often facilitated by the collusion of senior officials, with far-reaching security and environmental implications for the countries affected.
African countries are estimated to lose $17 billion to illegal logging each year. This is part of a global market with an economic value of $30 to $150 billion. The net profit from the illegal charcoal trade alone in Africa is estimated to be as much as $9 billion, “compared to the [$]2.65 billion worth of street value heroin and cocaine in the region.” High-value timber species are in immense global demand, with the United Nations Office on Drugs and Crime (UNODC) reporting that Africa’s share of rosewood exports to China rose from 40 percent in 2008 to 90 percent in 2018.
Illegal logging is part of a vicious cycle of opaque governance, exploitation, and insecurity that privileges the profit-seeking of select state officials and foreign actors. These patterns reduce the legitimacy of the government overall, further contributing to instability and violence.
Global economy
New trading scheme cuts tariffs on hundreds of everyday products (GOV.UK)
The UK is using its post-Brexit powers to launch one of the world’s most generous trading schemes with developing countries today. The International Trade Secretary Anne-Marie Trevelyan has launched the new Developing Countries Trading Scheme (DCTS), which will extend tariff cuts to hundreds of more products exported from developing countries, going further than the EU’s Generalised Scheme of Preferences. This is on top of the thousands of products which developing countries can already export to the UK duty-free [and will mean 99% of goods imported from Africa, for example will enter the UK duty free].
The scheme means that a wide variety of products – from clothes and shoes to foods that aren’t widely produced in the UK including olive oil and tomatoes – will benefit from lower or zero tariffs. The Developing Countries Trading Scheme ensures that British businesses can benefit from more than £750 million per year of reduced import costs, leading to more choice and lower costs for UK consumers to help with the cost of living.
World Trade Organization General Council, July 2022: UK statements (GOV.UK)
Renewed Ukraine grain exports helping lower food prices, World Bank economist says (The Japan Times)
The resumption of shipments from Ukraine is helping drive down the cost of grain, with wheat prices expected to stabilize should trade continue to flow smoothly from the country’s Black Sea ports, World Bank Senior Agriculture Economist John Baffes told The Japan Times in an interview. “We believe food prices reached their highest level in the second quarter of 2022,” Baffes said, noting that the World Bank does not expect food prices to increase for the rest of the year, given that most global food markets are adequately supplied.
Global food commodity prices decline in July (FAO)
The benchmark for world food commodity prices declined significantly in July, with major cereal and vegetable oil prices recording double-digit percentage declines, the Food and Agriculture Organization of the United Nations (FAO) reported today. The closely-watched FAO Food Price Index averaged 140.9 points in July, down 8.6 percent from June, marking the fourth consecutive monthly decline since hitting all-time highs earlier in the year. The Index, which tracks monthly changes in the international prices of a basket of commonly-traded food commodities, nevertheless, remained 13.1 percent higher than in July 2021.
“The decline in food commodity prices from very high levels is welcome, especially when seen from a food access viewpoint; however, many uncertainties remain, including high fertilizer prices that can impact future production prospects and farmers’ livelihoods, a bleak global economic outlook, and currency movements, all of which pose serious strains for global food security,” said FAO Chief Economist Maximo Torero.
As fuel prices rise, companies look to energy efficient solutions (UNEP)
A United Nations Environment Programme (UNEP)-led global effort supporting developing countries to move their markets to energy-efficient appliances and equipment. Energy efficiency can take many forms, with U4E focusing on lighting, refrigeration, air conditioning, distribution transformers and electric motors.
“Half of the near-term reductions in emissions in the energy sector can be achieved through energy efficiency, for example, by using more energy-efficient appliances and lighting and more efficient motors,” said Miriam Hinostroza, Head of the Global Climate Action Unit, at UNEP’s Energy and Climate Branch.
GSBN expands Cargo Release roll out to Latin America (Seatrade Maritime News)
Cargo Release is a blockchain-enabled application offering a paperless and transparent solution connecting everyone involved at the port of import including shipping lines, consignees, their agents, and terminals, cutting time for cargo to be document-ready for release from days to hours.
Due to their proximity with North and Latin American markets, Mexico and Panama are strategically important ports for global trade, with both Panama and Mexico amongst the top ten countries by number of port terminals.
“As global trade continues to face an evolving and increasingly dynamic environment, digitisation is playing a critical role in helping the shipping sector adapt. Mexico and Panama are strategically important locations for global supply chains, and we hope the rollout of Cargo Release will help further accelerate the digital leap the shipping sector is undergoing,” said Bertrand Chen, CEO at GSBN.
“The adoption of Cargo Release is essential to reducing the bottlenecks faced by the sector and its latest rollout in Latin America further ushers a modern era for global trade,” explained Zhang Chi, Latin America/Africa Trade Division General Manager at Cosco Shipping Lines
June Air Cargo: Stable and Resilient (IATA)
The International Air Transport Association (IATA) released data for global air cargo markets showing healthy and stable performance. Global demand, measured in cargo tonne-kilometers (CTKs*), was 6.4% below June 2021 levels (-6.6% for international operations). This was an improvement on the year-on-year decline of 8.3% seen in May. Global demand for the first half-year was 4.3% below 2021 levels (-4.2% for international operations). Compared to pre-COVID levels (2019) half-year demand was up 2.2%.
Air cargo performance is being impacted by several factors Trade activity ramped-up slightly in June as lockdowns in China due to Omicron were eased. Emerging regions (Latin America and Africa) also contributed to growth with stronger volumes. New export orders, a leading indicator of cargo demand and world trade, decreased in all markets, except China. The war in Ukraine continues to impair cargo capacity used to serve Europe as several airlines based in Russia and Ukraine were key cargo players.
African airlines saw cargo volumes increase by 5.7% in June 2022 compared to June 2021. As with carriers in Latin America, airlines in this region have shown optimism by introducing additional capacity. Capacity was 10.3% above June 2021 levels. Demand for the first half-year was 2.9% above 2021 levels and half-year capacity was 6.9% above 2021 levels.
Conference opens to draft first-ever treaty on ocean’s biological diversity (UN News)
Amidst calls for flexibility, openness and the spirit of compromise that prevailed in 1982, when the landmark “constitution for the oceans” was adopted, the new treaty will aim to address the conservation and sustainable use of marine biodiversity in areas of the ocean which are beyond the limits of States’ maritime zones. The session, which runs until 26 August, was convened following a decision taken by the General Assembly in May and is expected to be the final in a series set in motion since 2018 to draft an international legally binding instrument under the 1982 UN Convention on the Law of the Sea on the conservation and sustainable use of marine biological diversity of areas beyond national jurisdiction.
Commonwealth Secretary-General highlights importance of SMART governance for closing the digital divide (The Commonwealth)
the Commonwealth Secretary-General, Rt Hon Patricia Scotland QC, spoke at the Management Development Institute (MDI) in New Delhi India, about the importance of closing the digital divide and utilizing strategies such as SMART governance. The Secretariat is exploring with MDI the possibility of setting up a Commonwealth Hub for the Business of Government to help promote SMART governance across Commonwealth countries. While delivering a speech on the theme “Smart Governance for SMART Commonwealth – From Vision to Implementation” at the MDI Gurgaon campus, Patricia Scotland, Commonwealth Secretary-General of the Commonwealth, said:
“In the Commonwealth, only 18 per cent of people living in low-income countries have internet access, compared to 85 per cent in high-income countries. This digital divide continues to limit the potential of countries. Better access to broadband internet through cheaper rates and public access and achieving 50 per cent penetration across the Commonwealth would raise members combined national income by $74 billion to $263 billion. SMART Governance is the process of utilizing modern technologies and ICT to ensure a collaborative, transparent, participatory, communication-based and sustainable environment for citizens and governments. We will work with MDI as a hub for good governance in Commonwealth countries.
Related News
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Local news
Agriculture, Land Reform and Rural Development negotiates a settlement to clear citrus blocked in the EU ports (South African Government)
The new measures include amended additional phytosanitary declarations for grapefruit and soft citrus and revised cold treatment regime for oranges. The Department of Agriculture, Land Reform and Rural Development (DALRRD) confirms that it has managed to negotiate a settlement that will see clearing of citrus containers stuck in ports of entry in the European Union (EU).
Relief! Govt convinces EU to save SA citrus (Food For Mzansi)
Auto manufacturing is changing: how South Africa can adjust to protect workers and jobs (The Conversation)
Technological changes in industry have given rise to contending schools of thought about their impact on work and workers. Automation is rapidly deepening and widening, reaching new areas of work. What’s being produced is also changing. In the automotive manufacturing industry, for example, there is a global shift to vehicles that don’t produce emissions. The ongoing industrial revolution is defined by new work methods, ways of organising production, and advances in technology.
Video: Agoa expiry clause hurting Kenya (Business Daily)
Kenya has struggled to attract long-term, capital-intensive investments under the more than two decades-Growth and Opportunity Act (Agoa) deal with the US largely because of the pact’s expiry clause, the Trade minister has said. The capital investments by the firms grew 20.7 percent year-over-year to nearly Sh23.1 billion, according to data collated by 5he Kenya National Bureau of Statistics from the Export Processing zones.
Tanzania, Zambia cross-border railway unlocks trade ties (Anadolu Ajansı)
The decision to revive the Tanzania and Zambia Railway Authority (TAZARA) was reached last week in the port city of Dar es Salaam where the two leaders held talks. “We strongly support our leaders who have shown political will to upgrade this railway,” he said.
Museveni’s relation with Biden’s America (The Independent)
U.S. Secretary of State Antony Blinken’s recent visit to Africa appears to have cemented the growing perception of a diminished geo-political stature for President Yoweri Museveni. On his second visit to Africa, Blinken from August 7 to 12 visited three countries: South Africa, the Democratic Republic of the Congo (DRC), and Rwanda. In November 2021, Blinken had visited Kenya, Nigeria, and Senegal. The two visits are important signals of the U.S’s leadership’s power play on the African continent and those the superpower regards as the captains of the continent.
Prof. Christopher Isike who is the Director, African Centre for the Study of the United States, University of Pretoria, and his colleague, Associate Professor Tinashe Nyamunda, say Blinken’s recent visit to the three African countries is another sign of the Joe Biden administration’s US-Africa policy of reengaging with the continent. Prof. Isike and Nyamunda point out that in Pretoria, Blinken focused on four priorities that he believed the US and Africa could tackle together.
Ethiopian PM inaugurates first free trade zone (Capital Business)
Ethiopian Prime Minister Abiy Ahmed on Sunday inaugurated the Dire Dawa Free Trade Zone, the country’s first free trade zone. Ahmed said free trade zones would enable Ethiopia to better integrate into a rapidly changing world. The Ethiopian government said the Dire Dawa Free Trade Zone would augment the country’s economy by improving its import and export trade. “The Free Trade Zone we are building is one of our ways to integrate into a rapidly changing world. I have no doubt that the zone will not only facilitate trade and investment but also enhance our technological capabilities,” state-run Ethiopian News Agency (ENA) quoted Ahmed as saying.
Morocco’s road to development highlighted by US think-tank (The North Africa Post)
“Morocco actively encourages and facilitates foreign investment, particularly in export sectors like manufacturing, through positive macro-economic policies, trade liberalization, investment incentives, and structural reforms,” the author of the paper and president of the think tank Paolo von Schirach points out. Morocco also encourages and facilitates foreign investment, particularly in export sectors such as manufacturing, through positive macroeconomic policies, trade liberalization, investment incentives, and structural reforms.
Zambia can meet growing food demand (Moneyweb)
African countries face great challenges in adapting to climate change to meet growing demand for food. The current drought in East Africa is the latest manifestation of changing weather patterns. But countries such as Zambia, where there is good land and water, have major opportunities to meet food demand by growing agriculture exports and processing their produce. Zambian farmers can earn substantial returns from increased production. Their production can also alleviate the pressures in countries such as Kenya.
To realise these opportunities, Zambian products have to reach export markets at good prices. For this, Zambia needs competitive cross-border markets and efficient transport and logistics services. However, regional grain and oilseeds trade is not working for producers in Zambia or for buyers in East Africa, with huge variances in agricultural commodity prices in Kenya and in Zambia.
AfCFTA: FG told to emulate Rwanda, move into Africa, woo investors (Businessday)
The Federal Government has been advised to make haste and emulate Rwanda and other smart African countries to woo African investors and consolidate production structures as the African Continental Free Trade Area (AfCFTA) fast approaches. Investors in Port Harcourt, Rives State and Niger Delta zone, who played host to a Rwandan delegation led by the High Commissioner in Nigeria, Stanislas Kamanzi, warned that whereas Rwanda and some other African countries are creating investment hubs and manufacturing zones to attack Africa, Nigeria seemed to be sleeping. Rwanda had told the Nigerian investors how they make foreign exchange available to investors, how they make power supply and other facilities available, how they register a new business in just six hours, and how they give seven years tax holiday to foreign investors.
National competitiveness body would end manufacturing woes – Oteng Gyasi (The Business & Financial Times)
The country could significantly boost efforts to become a manufacturing hub, attract foreign investments, and create decent jobs by establishing a national competitiveness body, says renowned industrialist, Anthony Oteng Gyasi.
With the country in race against time to position itself as a major player within the continent-wide free trade market, he said a national competitiveness council could help to address some of the issues that make local manufacturers uncompetitive.
“We need a body which will ensure that the things which make industry uncompetitive are reduced, and help us to be competitive as a country,” Mr. Oteng Gyasi, who is the Executive Chairman of Tropical Cable and Conductor, told the B&FT in Accra.
African trade and integration
GITFiC to launch handbook to promote AfCFTA (Ghana Business News)
The Ghana International Trade and Finance Conference (GITFiC) is set to launch a comprehensive handbook that will enhance the level of sensitization on the framework of the African Continental Free Trade Area (AfCFTA). The launch is slated for September 20, 2022, in Accra, the commercial capital of Africa.
Mr Selasi Koffi Ackom, the Chief Executive Officer of GITFiC, made this known at a press briefing in Accra to discuss a survey report by the GITFiC titled; “Assessing the AfCFTA Among the Business Community in Ghana.” He said: “We are glad to state that this handbook contains detailed and simplified information on the framework of the AfCFTA, and particularly delves into key topics such as the Rules of Origin and Trade Remedies, among others, as pertains in the field of international trade.”
How Far Is Eastern, Southern Africa On AfCFTA Implementation (KT Press)
The Eastern and Southern Africa Regional Business Councils on the African Continental Free Trade Area (AfCFTA) agreement have agreed to move from rhetoric to action in implementing the trade deal. Though six African countries, including Rwanda have been chosen to pilot regional trade in selected goods, one of the major challenges is that a number of trade instruments had not been finalized.
To move from paperwork to action, the regional tripartite which met in Kigali from 10th – 11th August, 2022 recognized the role of private sectors in implementing the deal and came up with strong recommendations on how to move forward.
Trade Facilitation Programme Records Notable Progress (COMESA)
COMESA Member States, through the European Union-backed Trade Facilitation Programme have revised and adopted regulations for the elimination of non-tariff barriers (NTBs), a move which is expected to enhance intra-regional trade. The programme has equally supported Member States to implement selected measures under the WTO Trade Facilitation Agreement, development of the Regional Trade Information Portal and adoption of its standardized guidelines.
This Final Report is issued in the context of a dispute between the European Union (EU) and the Southern African Customs Union (SACU). This dispute was lodged under the Economic Partnership Agreement (EPA) between the EU and six states from the Southern African Development Community (the SADC EPA States), and relates to a bilateral safeguard measure adopted in 2018 by SACU in relation to the importation of frozen bone-in chicken cuts from the EU.
Safeguard measures may be taken if, as a result of the obligations incurred by a Party under this Agreement, including tariff concessions, a product originating in one Party is being imported into the territory of the other Party or SACU, as the case may be, in such increased quantities and under such conditions as to cause or threaten to cause: (a) serious injury to the domestic industry producing like or directly competitive products in the territory of the importing Party or SACU, as the case may be; or (b) disturbances in a sector of the economy producing like or directly competitive products, particularly where these disturbances produce major social problems, or difficulties which could bring about serious deterioration in the economic situation of the importing Party or SACU, as the case may be; or disturbances in the markets of like or directly competitive agricultural products in the territory of the importing Party or SACU, as the case may be.
Improving the CAADP BR process through critical analysis (IPPmedia)
The African heads of state and governments adopted in 2014 the Malabo Declaration that reasserts a strong commitment to reach CAADP’s goals and targets to be achieved within a ten years period (2015-2025). Dr Bahigwa Godfrey Director of Agriculture and rural development at the department of agriculture and rural development, of the African Union Commission stated that the critical analysis of the BR process aims at improve the quality of indicators that capture national information but also consider and align the new indicators that emerged from the African Common Position to the UN Food Systems Summit, but also ensure the relevance of indicators given the current economic trends. “We know that our countries committed to the comprehensive Africa Agriculture Development Programme (CAADP), during the Malabo, however, many of us have not domesticated the commitments, the recommendations from recent biennial review report indicate that we need to do more as a continent to get African agriculture where we want it to be.
China aims to surpass EU’s trade with Africa in a decade – report (The Star)
The Africa-China relationship is moving into a new phase with the latest policy initiatives, development strategies and financial pledges as tools for enhancing deeper and broader engagement by 2035. The latest report by Economist Intelligence shows China aims to push the trade from medium to long term over the next decade trying to outdo major international powers such as the US and EU. The Asian economic powerhouse is targetting sectors such as information and communications technology (ICT) infrastructure and services, agricultural ventures, consumer goods and electronics, light manufacturing and finance. To consolidate its position as the largest single country trader with the continent, it has previously pledged to buy a total of $300 billion(Sh35.9 trillion) worth of products from Africa between 2022 and 2024.
Global economy
The 3rd G20 Development Working Group Meeting Concludes, Urging The Importance Of Multilateralism And Development Funding Mechanisms (G20 Presidency of Indonesia)
The 3rd G20 Development Working Group (DWG) Meeting in Bali, held between 10 August and 12 August, concluded on Friday (12/8) with the discussion and finalization of key G20 agreements. These include the G20 Roadmap for Stronger Recovery and Resilience in Developing Countries, Least Developed Countries, and Small Island Developing States, the G20 Principles to Scale Up Blended Finance in Developing Countries, the G20 Ministerial Vision Statement: Multilateralism for Sustainable Development Goals (SDGs) Decade of Action, and the 2022 G20 Bali Update.
“The Development Working Group is a place for G20 member countries to come together, prioritize multilateralism, share solutions that promote growth, remap development plans, and achieve the SDGs targets. The G20 possesses the knowledge, expertise, and financial resources required to reverse trajectories that have gone off track. Thus, let’s make every effort to change direction ad build solid progress,” said the Minister of National Development Planning/Head of Bappenas Suharso Monoarfa.
This note reviews investor–State dispute settlement (ISDS) decisions rendered by arbitral tribunals in 2020. Thirty-one ISDS decisions on jurisdiction and merits were publicly available at the time of writing. Most claims were based on old-generation international investment agreements (IIAs) signed in the 1990s or earlier. The review of recent ISDS decisions highlights the need to speed up the reform of the old stock of IIAs currently in force. UNCTAD’s IIA Reform Accelerator, launched in November 2020, was developed to facilitate such efforts. ISDS decisions from 2020 touched upon important issues on the reform agenda for the IIA regime,
For policymakers and IIA negotiators, arbitral decisions are a useful source of knowledge on IIAs: How do IIA provisions work in practice, and which areas are most in need of reform? Together with UNCTAD’s IIA policy tools, this analysis can also help countries and regions make strategic choices concerning old-generation IIAs with ISDS. One way of addressing the challenges is to clarify key provisions through the interpretation, amendment or replacement of the old IIA. Countries may choose to pursue other available policy options (e.g. terminating an old IIA by consent or unilaterally).
Falling global food and fuel costs offer poor countries little relief (Washington Post)
Many of the global prices for food, fuel and fertilizer that spiked when Russia invaded Ukraine have returned to their prewar levels, defying the most dire forecasts even as policymakers warn of the continued risk of famine and financial crisis in the developing world. Russia’s Feb. 24 attack on Ukraine sent a shock wave through commodity markets. Since then, however, fears that the war would cut off all exports through the Black Sea have proved unfounded.
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SA negotiates settlement to clear citrus blocked in EU ports of entry (SAnews)
The South African government has managed to negotiate a settlement that will see the clearing of citrus containers stuck in ports of entry in the European Union (EU). The settlement follows new measures introduced by the EU to regulate risk associated with False Codling Moth (FCM) on citrus fruit. The new measures include amended additional phytosanitary declarations for grapefruit and soft citrus, and a revised cold treatment regime for oranges.
South Africa is in need of changes to its industrial policies (Mail & Guardian)
After 28 years of democracy, South Africa has failed to achieve structural transformation of the economy. The government must stop paying lip service to industrial policies and implement aggressive measures to transform the economy and steer production towards sectors that have high employment multipliers. Such policies can significantly increase the pace of job creation.
Metal recyclers say proposed metal export ban will negatively impact price of scrap metal (Engineering News)
Industry organisation the Metal Recyclers’ Association of South Africa (MRA) says the six-month ban on the export of metal proposed by the Department of Trade, Industry and Competition (DTIC), would detrimentally affect the price of all South African scrap metal, and, in turn, negatively impact the recycling sector and all sources of scrap generation, including manufacturing, construction and mining, as well as the informal sector. The DTIC on August 6 published draft proposals for a six-month export prohibition on scrap and waste metal, including copper cable, together with a permit system for the export of specified semi-processed metal products to address widespread theft of copper cable and other forms of metal from public infrastructure and issued a call for public comment on the proposed policies.
Manufacturing output down 3.5% y/y in June (Engineering News)
Manufacturing production in South Africa decreased by 3.5% year-on-year in June, primarily brought down by the motor vehicles, parts and accessories, and other transport equipment sector, which declined by 17% and subtracted 1.8 percentage points from the overall tally. The food and beverages sector’s 3.8% decline contributed to 0.8 of a percentage point being shaved off the overall figure, while a 2.9% decline in the manufacturing of basic iron and steel, nonferrous metal products, metal products and machinery took 0.6 of a percentage point off overall.
Zim a key market, says Nedbank Group (The Herald)
The Nedbank Group, says it continues to see Zimbabwe as a key market despite currently obtaining challenges that include resurgent inflation and operating cost pressures. The South African financial services group has a presence in the country’s financial industry through Nedbank Zimbabwe. The bank also has a footprint in other regional markets. Dr Terence Sibiya, the managing executive of Nedbank Africa Regions, during an online media briefing, said the short to medium and long-term outlook for Zimbabwe remained robust.
He said that there were various sectors of the economy that present opportunities such as infrastructure, energy, agro-processing, tobacco processing and mining. “For the long term, we believe these sectors will contribute significantly to overall recovery of the Zimbabwean economy and we would want to play a key role in that,” he said.
Kenya: Cost of flour set to shoot up as subsidy ends next week (Business Daily)
Consumers are staring at expensive flour as the subsidy programme is expected to come to an end next week. The government, in an agreement with millers, had in July agreed that the subsidy programme was to end after a month. This is despite President Uhuru Kenyatta’s announcement that the programme would continue indefinitely. The subsidy programme was started to ease the price of flour that had shot to a historic high of Sh210 on the back of a shortage of maize. The prices have so far dropped to Sh100 but the flour is hardly found in shops.
“The programme was to run for a month from the contract that we had with the government. It is coming to an end next week,” said Rajan Shah, chief executive of Capwell Industries.
Millers are also grappling with slow payment from the government even as it emerged that only Sh4 billion had been set aside for subsidy despite the Ministry of Agriculture’s announcement that Sh8 billion had been allocated for the programme.
French firms step up quest for big trade deals in Kenya (Business Daily)
French companies scouting for investment opportunities in Africa have tended to look towards the west of the continent, owing to historical ties that have similarly seen their British counterparts frequent the East African region. The European Union’s second-largest economy is, however, making a concerted effort to deepen its presence in East Africa, signified by France President Emmanuel Macron’s state visit to Kenya in March 2019 — the first ever by a French leader to Nairobi. Major French multinationals have long operated in Kenya and East Africa, particularly in the manufacturing and energy sectors.
Mourad Choiuqa, Bpifrance regional manager for Eastern, Southern Africa and the Indian Ocean, told the Business Daily that since 2015, the agency has been financing deals between French and foreign companies, from one million euros for private firms to five million for public sector players. “It’s a financial bridge that we are trying to bridge between French and foreign companies to strengthen partnerships between France and Africa. For the moment this is something that we do a lot in West Africa because of historical reasons because that’s where you find more French companies partnering with local firms,” he said.
Trade minister accused of unfair policies on rice importation (Parliament of the Republic of Uganda)
Parliament has directed the Minister of State for Trade, Hon. Harriet Ntabazi, to withdraw her directive on what they termed, ‘unfair trade policy on rice importation’. On 21 April 2022, Ntabazi issued a directive to the Commissioner, Customs Uganda Revenue Authority (URA) where she directed the Authority to stop clearing Value Added Tax (VAT) exempted rice imports at the borders. This directive prompted rice traders, specifically the Kampala Rice Traders Association to petition Parliament to intervene, claiming this directive was unfair and repugnant.
In their petition, rice traders also decried Ntabazi’s directive to install the Rice Agribusiness Development Foundation (RADFO) as an apex body with autonomous powers to import rice, which the traders said was fleecing them and frustrating trade. The matter was subsequently referred to the Parliamentary Committee on Tourism, Trade and Industry for investigation.
While presenting the committee report during the plenary sitting on Wednesday, 10 August 2022, the committee chairperson, Hon. Mwine Mpaka said that Ntabazi exceeded her powers and issued orders that have distorted trade order in the rice trade. “The minister irregularly and without lawful authority instituted RADFO as the apex body in the rice sub sector without involving the rice traders and associations. The actions of the minister are disruptive and do not encourage trade order in the rice trade,” Hon Mpaka said. The committee also noted that Ntabazi acted unfairly when she issued directives to URA to stop rice imports without giving rice traders a fair hearing.
Uganda: Proposed local content law ‘could break trade agreements’ (Supply Management)
Uganda’s government has warned MPs not to pass a private member’s bill that aims to prioritise local firms wherever possible in procurement, saying it could break trade agreements. Amos Lugoloobi, finance minister in charge of planning, asked lawmakers to closely scrutinise the local content bill, saying around 90% of its contents relate to procurement. Lugoloobi believes the bill as it stands is not likely to guarantee Ugandan firms are prioritised during public procurement and could risk sparking disputes with trading partners. The bill would force contractors using public money or Uganda’s natural resources to acquire a licence and prioritise local suppliers.
But according to Lugoloobi, the bill is not comprehensive enough to cover issues of local content and contradicts the East African Community Protocol on free movement of goods and services. “The protocol is about free movement of goods and services and you cannot legislate against it,” he told a finance committee. He urged consultations with the minister for East African community affairs instead.
US Think Tank: Morocco Positions Itself As Africa’s ‘Business Hub’ (Morocco World News)
Given its gigantic infrastructure projects and well-defined strategy, Morocco is positioning itself as a “business hub” in Africa, according to a recent article by the Global Policy Institute, a Washington-based US think tank.
“Morocco enjoys political stability, a geographically strategic location, and robust infrastructure, which have contributed to its emergence as a regional manufacturing and export base for international companies,” the article noted.
Titled “Morocco’s Road to Development,” the think tank’s report highlighted Morocco’s commitment to further improve the business climate and attract more foreign direct investment, while reinforcing its investment strategy in sub-Saharan African countries.
African trade and integration
The AfCFTA Country Business Index: Understanding private sector involvement in the AfCFTA (Brookings Institution)
The narrative around a successful African Continental Free Trade Area (AfCFTA)—its potential to increase intra-African trade by 15 to 25 percent, or $50 billion to $70 billion—is promising, but if African businesses do not efficiently utilize this landmark agreement, its ultimate success will be limited. Since the private sector is directly involved in cross-border trade, it is a major stakeholder and beneficiary of the AfCFTA.
Thus, to better understand how African businesses are approaching the AfCFTA and, more importantly, how the AfCFTA can best support those businesses through trade, the United Nations Economic Commission for Africa (ECA) created the AfCFTA Country Business Index (ACBI).
The ACBI is a new AfCFTA-focused, ease-of-doing business index and is based on a robust theoretical framework and data collection process. It enables relevant policymakers to identify bottlenecks in intra-African trade at a country level, which informs the barriers impeding effective AfCFTA implementation from the perspective of the private sector. It aims to inform African policymakers on the trade barriers and guide AfCFTA national strategies. The ACBI aims to ensure that the African Continental Free Trade Area delivers on its projected sustainable development promises, especially for women-owned and small- and medium-sized businesses (SMEs).
AfCFTA launches digital hub to ease trade on the continent (Capital Business)
The African Continental Free Trade Area (AfCFTA) Secretariat has launched a digital platform aimed at easing trade on the African continent. The platform dubbed – The AfCFTA Hub – is an interconnect clearing house for national government, intergovernmental, private, and public digital and partnership platforms to link together all businesses to drive the success of the free trade area. The hub is designed to grow into a single, trusted directory of the services needed to navigate the AfCFTA for small players, thereby making the AfCFTA the most inclusive Free Trade Area in the world.
Kenya is one of the seven countries that have been selected to start trading under the AfCFTA framework in a pilot phase to test the environmental, legal and trade policy basis for intra-African trade. Following the selection, the country recently launched its National AfCFTA implementation strategy to fast track implementation of the AfCFTA. The Strategy identifies priority export products and sectors for goods and services aligned with Kenya’s national development goals and aspirations, including the Integrated National Export Development and Promotion Strategy (INEDPS) and the Big Four Agenda.
AfCFTA: Homework, Hard Work, Network And Smart Work Key Factors To Successful Business – Amb. Samuel Owusu (Peace FM Online)
The UN Eminent Peace Ambassador to Ghana, Dr Samuel Ben Owusu has stated that it will take four key factors, Homework, hard work, network and smart work to run a successful business in the country.He made the assertions at the Mantse Amugi Business Africa 2022 Conference which was held at the Accra Metropolitan Assembly (AMA) on the 9th to 10th of August 2022.The Conference and Exhibition dubbed, “Realizing the AfCFTA Benefits and More” was organised under the auspices of the Ga Traditional Council in Partnership with the Office of the Ga Mantse and JLA Group International.
“Do as much homework as possible. Deeply understanding the potential customer’s pains and desires allows a founder to iterate the product and vision to quickly find product/market fit. Really knowing the market allows a team to be flexible in their plans and to identify and analyse new opportunities as they arise. It also strengthens your confidence, your self-esteem and integrity in your industry.”He also said,” You must align yourself with a certain character and attitude to effectuate your homework studies, you must have the attitude of quick response, responding to inquiries and the market demands will keep you ahead if the market obedience to the fluctuation of the market and being obedient to your task.”
Agro-processors urged to tap into continental trade platform (The New Times)
“Over 4,000 local cooperatives are in agricultural business, small firm industries are agro-processing based, it shows how agriculture plays a major impact in trade and if we upsurge on the agro- processing industries, the county will be able to tap all the prospects in free trade area, but only if we have competitive products on the market”, he said The Minister of Trade and Industry, Jean-Chrysostome Ngabitsinze has urged local agro-process manufactures to tap into opportunities offered under the African Continental Free Trade Area (AfCFTA).
Adopt Malabo declaration, African governments told (IPPmedia)
It was revealed at the workshop on Critical Analysis on the Biennial Review Process held recently in Yaounde, Cameroon that failure and hesitation in adopting the pledge to align by the Malabo declaration is accelerating the current food security crisis across the continent.
Speaking on reasons behind the declaration implementation failure in most of the continent’s states, Minister of Agriculture and Rural Development Republic of Cameroon Mbairobe Gabriel said African countries should domesticate the 2014 Malabo commitments if the continent is to benefit from its agricultural potential and develop holistically.
We know that our countries committed to the comprehensive Africa Agriculture Development Programme (CAADP)during Malabo, however, many of us have not domesticated the commitments,” he said.
According to him, the recent biennial review indicates that African countries need to do more as a continent to get the African agriculture system where it is supposed to be. He urged Africans to quickly rethink and act accordingly.
Museveni pledges to back Somalia’s bid to join EAC (Monitor)
President Museveni has pledged to support Somalia in its bid to join the East African Community (EAC) and exploit trade opportunities that exist in the region. Mr Museveni said Somalia has all qualifications to join EAC, which include; sharing a border with one of the member countries, having a private sector-led economy and being a democratic country. He was speaking during the closing ceremony of a two-day inaugural Uganda-Somalia business and investment summit held in Kampala yesterday.
ECA currently comprises Uganda, Kenya, Tanzania, Rwanda, Burundi, South Sudan and DR Congo. Mr Abdirashid Duale , the chief executive officer of Dahabshiil, a money transfer company, said the summit does not only present opportunities but also helps the business community understand the challenges that people in the region face.
Sustainable Market Access for African Road Transport (Smart) - Final Report (AfDB)
The Final Report of the SMART (Sustainable Market Access for African Road Transport) study is aimed at analysing the main regulatory and non-physical barriers that impede a streamlined movement of vehicles and goods within and between the different Regional Economic Communities (RECs) in Africa, and at providing recommendations in order to increase efficiency of cross-border road transport, reduce its costs, and maximize the economic benefits of the transport infrastructure, in view of reducing the cost of trad-ing across borders.
15 Sub-Saharan African countries that earn the highest forex through exports of products and services (Business Insider Africa)
For most developing countries in Africa, foreign trade is imperative. For one, these countries need to import the many products and services they can’t produce. Also, exporting their products (mostly raw materials) gives them the opportunity to earn much-needed hard currency and bolster their foreign reserves.
For the rest of this article, we shall focus on fifteen African countries that earn the highest foreign exchange through exports of products and services. This is particularly important now that many African countries, from Nigeria to Kenya, are grappling with chronic dollar shortages. Perhaps the answer to the problem is for these countries to find ways to export more products and services so they can earn more forex.
Pascal Lamy: Africa’s position at Cop27 (African Business)
Few people understand issues of international trade, development and environment as well as Pascal Lamy. Following eight years as director-general of the World Trade Organisation, Lamy now serves on the board of the Mo Ibrahim Foundation, one of Africa’s most influential civil society organisations. He joins us following the release of the Foundation’s 2022 Governance Forum report, which aims to make Africa’s case in the global climate change debate ahead of Cop27 in Egypt in November.
Framing it as a race between demography and economy, Lamy wants to see Africa’s development needs prioritised in the global response to climate change. Africa is prepared to fight for its position, he says, and highlights South-South solidarity as a countervailing force against the US, China, EU and other heavyweights.
Africa is already a large positive for the global climate ledger, and Pascal outlines further opportunities for the continent to support global climate solutions. Governance will be key, he says, explaining the Mo Ibrahim Foundation’s work on governance monitoring, assessment and improvement.
The New U.S. Africa Strategy Breaks From the Status Quo—With Some Perplexing Stumbles (Carnegie Endowment for International Peace)
On Monday, U.S. Secretary of State Antony Blinken introduced the Biden administration’s much-awaited strategy for Africa. Speaking in South Africa, during his second trip to the continent in less than a year, Blinken outlined the policy against a backdrop of the pandemic, the war in Ukraine, and a global economic slowdown. Although somewhat comparable to recently launched initiatives for Latin America and the Indo-Pacific, the Africa strategy stands out as an uniquely elaborate effort at a moment when the administration is working to revamp U.S. relations across the globe.
At its core, the strategy articulates a vision for a twenty-first century U.S.-African partnership motivated by discernible global shifts. One motivation is the realization of Africa’s importance to U.S. global priorities, such as the continent’s rapidly growing population, one of the world’s largest trading blocs, significant natural resources endowments, and a sizable voting bloc in the United Nations.
U.S.-Africa partnerships advance shared ideals (ShareAmerica)
Exclusive: Singapore’s Thunes and Standard Bank in advanced talks to extend African payments (The Africa Report)
The planned partnership will help Thunes to expand its presence in some of the 35 sub-Saharan countries where it operates, as well as add new markets, Yao says from the company’s regional head office in Nairobi. Thunes aims to add 13 new sub-Saharan countries by the end of 2023 and has identified Angola and Namibia as priority new markets for entry, Yao says.
Remittances can be made instantly from international Thunes partners to African countries such as Kenya, Ghana and Tanzania which have a “real-time switch” for bank transfers. Africa lags behind the rest of the world in terms of real-time remittances. Last year, according to ACI Worldwide, 20 African states remained absent from any kind of real-time payments system.
The first Africa-Caribbean Trade and Investment Forum Comes On 1-3 September at Barbados (Modern Diplomacy)
The Government of the Republic of Barbados will be hosting the first ever edition of the AfriCaribbean Trade and Investment Forum (ACTIF) which is being convened by African Export-Import Bank (Afreximbank) and Government of Barbados in collaboration with African Union Commission (AUC), African Continental Free Trade Area (AfCFTA) Secretariat, Africa Business Council, the Caribbean Community Secretariat, and Caribbean Export Development Agency.
The main goal of the AfriCaribbean Trade and Investment Forum is to provide a platform for the development of strategic partnerships between the business communities in Africa and the CARICOM Region with the objective of fostering bilateral cooperation and engagement in trade, investment, technology transfer, innovation, tourism, culture and other services. The Forum will also be used as a vehicle to actively promote trade and investment opportunities among people of Africa and the Caribbean, as well as the wider diaspora which will contribute to the implementation of the African Continental Free Trade Agreement (AfCFTA) and to the Caribbean trade development agenda.
Global economy
Building resilient maritime logistics in challenging times (UNCTAD)
Frequent disruptions in supply chains have exposed the vulnerability of transport and logistics operations amid unequal capabilities and resources between countries. Recurrent extreme weather events, the COVID-19 pandemic, the war in Ukraine and other crises illustrate the magnitude of the challenge and its implications for global supply chains and sustainable development. These challenges underscore the need to enhance resilience, particularly in the most vulnerable economies. “As disruptions are becoming part of the new normal, resilience and risk management emerge as new mantras for transport, logistics, trade and supply chains,” said Shamika N. Sirimanne, director of UNCTAD’s technology and logistics division.
To help countries cope with the new normal, UNCTAD has launched a new website to promote resilient maritime logistics in the face of disruptions. The website includes a guidebook for ports entitled “Building Capacity to Manage Risks and Enhance Resilience” and a wealth of other resources. “The web package provides our beneficiaries with support in risk identification, assessment, management tools and approaches, case studies, good practices and a step-by-step resilience-building process for ports and other relevant maritime supply chain actors,” she added.
“There is no time to waste”: Commonwealth Secretary-General calls for greater, multidisciplinary collaboration to enhance food security (The Commonwealth)
The Commonwealth Secretary-General has called for a holistic and multi-disciplinary approach to tackle the increasing threat of food insecurity across the world, which has been exacerbated by the COVID-19 pandemic, conflict, the climate crisis, and political, social and economic inequalities. Speaking at an event held in the margins of the Birmingham 2022 Commonwealth Games on 29 July 2022, the Secretary-General committed to making food security a primary focus, urging the international community to step forward with practical and financial support for countries facing famine and people facing starvation. The UK House panel discussion saw Commonwealth leaders, policymakers, and academics discuss how university-led partnerships are key to translating research and expertise into action on the pressing global challenge of food security, biodiversity loss and climate action.
In her keynote address, the Commonwealth Secretary-General, The Rt Hon Patricia Scotland QC, highlighted the critical need for international experts, academics, and policymakers to work together, across sectors and disciplines, to develop practical solutions to issues such as climate change and food security, and support sustainable growth across the Commonwealth.
Young workers have been hit hardest by COVID fallout, says UN labour agency (UN News)
According to the International Labour Organization (ILO), the pandemic has caused many additional problems for 15 to 24-year-olds who’ve experienced “much higher” unemployment losses than older workers since the global health emergency was declared in early 2020. Young women have struggled more than their male counterparts to find work, while Arab nations are expected to see the highest levels of youth unemployment by the end of the year, compared to the global average. “We know that the COVID-19 pandemic has wreaked havoc on youth labour markets around the world,” said Martha Newton, ILO Deputy Director-General for Policy. “It’s exposed a number of shortcomings in the way the needs of young people are addressed, especially the most vulnerable first-time job seekers, school dropouts, fresh graduates with little experience and those who remain inactive not by choice.”
Speaking at the launch of ILO’s report, Global Employment Trends for Youth 2022: Investing in transforming futures for young people, Ms. Newton said that the share of youth not in employment, education or training in 2020 rose to 23.3 per cent.
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Citrus fruits are one of the most important export products for the South African economy. The South African Citrus Growers Association (CGA) estimates that the country exported 158.7 million cartons of oranges in 2021, making it the biggest revenue earner in Africa from orange exports. The European Union (EU) is one of the main destination markets for South African citrus fruits, making up 40% of South African orange exports and 27% of its soft citrus exports.
On 21 June 2022, the EU published a new cold treatment regulation for the importation of the fruits of Citrus sinensis Pers. (oranges/sweet oranges) from South Africa and various other countries, based on its right to protect it territory from a phytosanitary pest commonly known as false codling moth (FCM). The Regulation entered into force on 24 June 2022, and it applies as from 14 July 2022.
The initial reaction of the CGA was to point out that there was a need for such measures to be necessary, justified, proportionate and feasible. On 28 July 2022, however, the South African Department of Trade, Industry and Competition (DTIC) confirmed that the South African government had submitted a Request for Consultations with the EU in terms of the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). Read more.
EU’s New Import Rules Cost South African Citrus Exporters $12 Million (Bloomberg)
South Africa strikes deal with EU to release tons of oranges stuck at harbours (Engineering News)
Feathers set to fly as union Fawu calls for poultry meeting with Patel (IOL)
The Food and Allied Workers Union (Fawu) yesterday slated the decision by Trade, Industry and Competition Minister Ebrahim Patel to suspend to suspend poultry anti-dumping duties for 12 months, saying this would kill jobs and sector. It also called for an urgent meeting with the minister.
The department of trade, industry and competition (DTIC) on Monday granted a reprieve to Brazil, Denmark, Ireland, Poland and Spain by suspending the implementation of anti-dumping duties against them. It did so to grant relief to South African consumers who are battling with the high cost of living including soaring food prices.
Local poultry producers this week threatened to hold back investment in the sector for the duration of the withholding of tariffs.
Namibia trade deficit drops to N$2,5 billion (The Namibian)
Namibia’s export earnings in June 2022 stood at N$8 billion, up 26% on May figures, while the import bill amounted to N$10,5 billion - down by 15,9%.According to the Namibia Statistics Agency’s Namibia Trade Statistics Bulletin for June, this resulted in a trade deficit of N$2,5 billion, which is 59,4% lower than the N$6,1 billion recorded in May 2022. Namibia’s trade composition by partner showed that Botswana emerged as Namibia’s largest market for exports, whereas South Africa maintained her position as the largest source market for the country. The composition of the export basket for the month under review mainly comprised minerals such as precious stones (diamonds) and uranium, while fish remained the only non-mineral commodity in the top five products exported.
“Namibia’s cumulative trade activities continued to increase for the period of January to June 2022 when compared to the same period during 2021,” said the bulletin, signed by statistician general Alex Shimuafeni.
Brazil business engagement promotes Namibia as the preferred and shortest trade route into southern Africa (Namibia Economist)
The Walvis Bay Corridor Group (WBCG) embarked on a business development mission to Brazil in July as part of its ongoing efforts to promote Namibia as the preferred and shortest trade route into southern Africa. The mission’s goal was to engage the Brazilian business community, ports, shipping lines, freight forwarders, and industries to explore opportunities Namibia can provide as a supply chain solution for the Brazilian market, Namports Quayside bulletin released this week said. According to the bulletin, the two-week engagements concluded successfully with an information-sharing session in São Paulo, Brazil. The session, titled “Positioning Walvis Bay as Brazil’s Preferred Trade Route,’ highlighted the advantages of using the Ports of Walvis Bay and Lüderitz and thus by extension the Walvis Bay Corridors.
“The promotion of trade, investment, and economic cooperation should continue to be given higher emphasis in this situation. Stronger cooperation in other areas of our economies should be encouraged by the positive bilateral and diplomatic relations between our two nations. Furthermore, I want to reassure you that our two nations have already signed several general framework agreements for cooperation in a variety of fields. These agreements should function as a catalyst for our two nations’ sectors to finalize their sector-specific agreements and memoranda of understanding, further enhancing and elevating the level of cooperation between Brazil and Namibia to greater heights,” said Mbapeua Muvangua, Namibia’s Ambassador to Brazil.
Changes in sub-Saharan maize trade spell potential trouble for Kenya (CNBCAfrica)
Maize production in some of the sub-Saharan African countries that dominated maize supplies during the 2021/22 marketing year is expected to be lower this coming season. This will bring about some changes in the sub continent’s maize trade in the 2022/23 marketing year, in particular creating complications for Kenya. In the 2021/22 season, Kenya was the largest maize importer in the region. But Kenya has a longstanding policy against genetically engineered maize. This limits the role of South Africa, the sub-continent’s biggest maize producer and exporter, in meeting Kenya’s needs. The expected lower production comes in a season when demand for maize from countries in sub-Saharan Africa that rely heavily on imports is expected to remain strong. It’s estimated that Kenya, for example, will need to import 700,000 tonnes of maize for 2022/23. Kenya’s maize production is expected to be marginally higher, but not enough to meet the country’s needs.
Kenya is typically one of the major maize importing countries in sub-Saharan Africa. The country’s expected 700,000 tonnes of maize imports account for 21% of the region’s expected maize imports of 3.4 million tonnes in 2021/22 season, according to data from the International Grains Council. Other typical maize importing countries include Zimbabwe, Botswana, Mozambique and Namibia. However, in the 2021/22 marketing year, several sub-Saharan African countries such as Zambia, Tanzania, Zimbabwe (an exceptional year from the usual importing position) and South Africa had ample maize harvest. This made it easy for them to meet Kenya’s import needs. Tanzania and Zambia were the leading maize suppliers to Kenya.
China Exempts Rwanda From Export Taxes (Taarifa News)
China will start its zero-tariff to 98% of products from 16 developing countries including Rwanda effective next month, according to China’s Department of Foreign Affairs. Officials say the move is aimed at increasing the number of imports from low developed countries including those in Africa and some Asian countries as well as cementing strong trade ties in future. Wu Deng, China’s Director General, Department of African Affairs, MFA, China said in a Tweet that; “From September 1, (sic), China will increase the scope of products enjoying zero-tariff treatment to 98% for 16 least developed countries including Rwanda, Djibouti and Togo” His tweet added; “The tax free policy will gradually expand to all least developed countries and increase imports from Africa.”
Burundi allows sugar, cement imports to tame black market (The East African)
Burundi is set to open a window for importing sugar and cement to meet a shortfall that has created a black market where prices have shot up. This was revealed through a Cabinet statement released Wednesday following a Council of Ministers meeting in Gitega last week. “There are discrepancies between the reference prices and the actual prices on the market,” the Cabinet said, adding that efforts to enforce official prices have been in vain. State-owned producers have also been seeking a price review, particularly beer maker Brarudi and cement manufacturer Buceco since 2021, for reasons including soaring raw materials and transport costs. “Given the production capacities of these companies, it is not clear that these products will be available even after the price increase,” the Cabinet noted.
Parliament passes One Stop Border Bill (Malawi24)
Members of Parliament on Tuesday passed One Stop Border Bill which seeks to provide a legal framework for implementation of agreements signed between the Republic of Malawi and neighboring countries for operationalization of one stop border posts to facilitate coordinated border control for efficient cross-border movement of people and clearance of good. The legislation will enable Malawi to comply with its obligation under the SADC Protocol on Trade, COMESA Treaty and other regional and international trade facilitation agreements. One-stop borders reduce the number of stops in cross-border trade and other transactions by combining and locating, at a single location, border and control activities between the Republic of Malawi and neighboring countries. Phiri added that the bill aims at streamlining operations of all borders so that clearing of goods and people who are traveling to neighboring countries should be sped up.
tralac Blog: Extended border delays a common experience at Kasumbalesa: What are the real issues and can we expect improvements?
African trade and integration
Trial sale of commodities through AfCFTA begins (The East African)
Tanzania, Kenya and Rwanda will trial sale livestock, fruits, vegetables and spices in a pilot phase of the Africa Continental Free Trade Area agreement (AfCFTA) and whose findings will be tabled at the AU Summit next year. The regions’ team leader in the AfCFTA negotiations Damas Haule says the countries’ offer also includes fish, medicines, fertiliser, paper and industrial chemicals. Energy products such as cooking gas, bicycle and motorcycle tyres, and machinery for construction and farming have also been included. The three countries were selected in June to start trading under the pilot phase whose final details will be thrashed out before a formal roll-out in the final quarter of this year.
Case Made For Slow Start To Trading Under AfCFTA (News Ghana)
More than a year since the symbolic export under AfCFTA by two of Ghana’s manufacturing companies, no other companies have exported under the continental free trade agreement, with sections of the public questioning why. The Secretary General of the International Chamber of Commerce, Ghana, Emmanuel Doni-Kwame has explained that this is neither a demonstration of a failure of the trade agreement nor a sign of low interest by the private sector. According to the Secretary General of ICC Ghana, intra-Africa trade persists however many traders may be trading under existing different trading agreements such as the ECOWAS Trade Liberalization Scheme (ETLS) and are yet to migrate unto AfCFTA.
Mr. Doni-Kwame also opined that private sector’s lack of activeness in the free market may be as a result of negotiations still ongoing between the party states. He added that, while Ghana may appear ready to trade that may not be the case for all other countries who are at different levels of readiness.
Papss can save continent $5b in payment costs (The East African)
Pan-African Payment and Settlement System (Papss), is a payment method that operates across African borders allowing the transfer of currencies instantly and at low costs. Its chief executive spoke to Bamuturaki Musinguzi about its achievements and prospects.
Over 80 percent of intra-African payments go through Europe or the US, resulting in high transfer and compliance costs. The establishment of the African Continental Free Trade Area (AfCFTA) has added to the need and urgency of providing an enabling continental payment and settlement infrastructure that will support its objectives. Papss was adopted in July 2019 by the African Union Heads of State to support the AfCFTA.
All six central banks of WAMZ (West African Monetary Zone) have been carrying out a pilot live exercise, which began in October 2021, and has been successfully concluded. This paves the way for commercial bank transactions. In the past few months, two more central banks and more than 300 major commercial banks have joined the PAPSS network.
In parallel, we signed strategic partnerships that broaden our reach — such as the Comesa Regional Payment and Settlement System.
PAPSS is now ISO 27001 Certified, in commitment to global security standards (Afreximbank)
The Pan-African Payment and Settlement System (PAPSS) operated by African Export-Import Bank (Afreximbank) in collaboration with the African Continental Free Trade Area (AfCFTA) Secretariat and the African Union (AU), announced today that it has achieved the International Organisation for Standardisation (ISO) 27001 certification for its global operations. Following an external certification audit, by an accredited certification body that was conducted on the 27th of June 2022, PAPSS was recognized as compliant to ISO27001:2013 standard.
Mike Ogbalu III, CEO of PAPSS said: “PAPSS being a Pan-African Payment Market Infrastructure, with its mandate to provide an interoperable, secure and low-cost cross-border payment infrastructure. The main enabler to achieve the above mandate is to build the highest levels of trust assurance with our stakeholders. In addition to that, through the continual improvement approach, this achievement will help in improving PAPSS operational efficiency and compliance with global standards ensuring the protection of company image and reputation.”
SADC Business Council and Afreximbank launch the SADC – Africa Trade and Investment Marketplace (Afreximbank)
The Export-Import Bank (Afreximbank) and the SADC Business Council (SADC BC) have launched the SADC – Africa Trade and Investment Marketplace which aims to promote regional trade, unlock investment opportunities, deepen economic cooperation, and drive sustainable business growth between the SADC region and the rest of Africa. The SADC – Africa Trade and Investment Marketplace will provide the private sector in the SADC region with a platform to foster higher levels of engagement in trade and investment-related matters with the rest of Africa. Afreximbank will provide access to trade and market information through its trade and investment programmes – roadshows, investment conferences, the biennial Intra-African Trade Fair (the next edition being slated for 21-27 November 2023 in Abidjan, Cote d’Ivoire) – as well as digital platforms such as the Trade Information Portal, Trade Regulatory Information Portal and the African Trade Exchange among others, to enable the private sector in SADC to connect with the rest of Africa. Further, Afreximbank will deploy a range of its financing instruments and trade facilitation initiatives to advance intra-African trade and investment under the African Continental Free Trade Agreement (AfCFTA).
Somalia Bids to Join EAC, Museveni Vows to Support It (Chimpreports)
Somalia is bidding to join the East African Community (EAC), and the newly elected Somali President Hassan Sheikh Mohamud is persuading EAC leaders to accept his country’s application.
Speaking at the inaugural Uganda-Somalia Investment and Business Summit at Munyonyo Commonwealth Resort in Kampala on Wednesday, President Mohamud said that Somalia belongs to East Africa, and therefore its application to join the Bloc should not be rejected. In response, Ugandan President, Yoweri Museveni pledged his full support for Somalia to join the East African region Bloc.
Why East African’s financial sector linkage could be stillborn (The East African)
A plan to harmonise the financial sector in the region risks stalling as East Africa’s partner states grapple with economic and political crises. These problems have seen the World Bank-funded stockmarket reforms fall behind schedule by more than six years. The World Bank has been funding the region’s stock market linkage project through a $26.5 million grant. But it now says partner states face financial constraints and could not sustain the operations of an interlinked stock market. The Bank says in its Implementation Completion Report that some partner states are even finding it difficult to finance the implementation of the financial education strategy/financial literacy within their respective countries. “Inadequate budgets remain an important constraint to pursuing the financial integration agenda of the community forward, including the goal of achieving a single market in financial services and implementation of the Monetary Union Protocol,” the bank says, referring to the EAC’s third pillar of integration.
Small-Scale Cross-Border Trade Initiative Extended by 31 Months (COMESA)
The European Union (EU) has granted a no-cost extension to the Small-Scale Cross Border Trade Initiative (SSCBTI) programme by 31 Months. The Project will now end in December 2024 from the initial deadline of May 2022. Assistant Secretary General for Administration and Finance Dr Dev Haman revealed this in Lusaka during the opening of the third Meeting of the Project Steering Committee for the SSCBTI on 8 August 2022. The programme has had four years of implementation and has made good progress with tangible successes in working to formalize small-scale cross border trade flows in the COMESA-EAC-SADC tripartite region. Therefore, this extension will allow for implementation of the remaining activities that are pending.
Rwanda Reaffirms its support of COMESA (COMESA)
Rwanda has reaffirmed its support of regional integration programmes being implemented by the Common Market for Eastern and Southern Africa (COMESA). His Excellency Paul Kagame says his government believes that integrating African countries is a sure way of attaining economic prosperity and development. He said this at State House in Kigali on 2nd August when he met Secretary General Chileshe Mpundu Kapwepwe who was leading a COMESA delegation on a three-day working visit to that country. The President used the occasion to commend COMESA on making positive advancements in enhancing intra-regional trade by developing various trade facilitation Instruments that are being used by the people.
In highlighting the importance of regional programmes, President Kagame reiterated his governments’ willingness to host the next Tripartite Free Trade Area (TFTA) Summit. The last Tripartite FTA Summit was held in June 2015, in Sharm El Sheikh, Egypt when the TFTA was launched.
Central African Economy Ministers Meet to Merge Regional Economic Groupings (VOA News)
Central African ministers meeting in Cameroon have agreed to merge two regional blocs in a move to boost trade and growth. The 11-member Economic Community of Central African States (ECCAS) will join with the six-member Economic and Monetary Community of Central Africa (CEMAC). The deal aims to eliminate rivalry that has helped to make central Africa the poorest region among Africa’s economic groups.
Central African economy ministers say they want to foster regional integration, accelerate economic transformation and facilitate development by merging the two economic blocs.
‘Sobering’ African Economic Outlook strikes a chord with US and UK stakeholders (AfDB)
The African Development Bank’s African Economic Outlook report 2022 (AEO) struck a chord with policymakers and other stakeholders during recent seminars in the United States and the United Kingdom. An African Development Bank Group delegation, led by Acting Chief Economist and Vice President Kevin Urama, was in Washington D.C. 20-29 July, and London 1-2 August, to discuss the AEO, a flagship publication of the Bank, with global market players.
The verdict was clear. From the International Monetary Fund to the World Bank, the Centre for Global Development, Brookings Institution, the Atlantic Council, and the University College London this week, speakers agreed that the 2022 AEO provides evidence-based policy options for driving inclusive growth by building climate resilience and a just energy transition in Africa.
Yacob Mulugetta, professor of energy and development policy at the University College London, observed that the AEO captures how low-carbon transitions in Africa will vary from country to country. “What this means is transformational socio-economic opportunities must be at the forefront of the green energy transition. This will require new technologies as well as climate finance…which is additional finance beyond official development assistance,” Mulugetta said at a public seminar for policy stakeholders in the UK on Monday.
A recent webinar hosted by the African Development Bank brought together experts to examine how Africa can become a hub for manufacturing lithium-ion batteries to store energy and electrify the transport fleet. The webinar, which was held on 11th July 2022 under the theme, Leveraging Africa’s green minerals for the energy transition: The role of regional integration and the AfCFTA, is part of a knowledge series organized by the Bank’s African Natural Resources Management and Investment Centre, and the Energy Financial Solutions, Policy Regulations Department.
Dr. Vanessa Ushie, Acting Director of the Bank’s African Natural Resource Management and Investment Centre, emphasised Africa’s potential in her opening remarks: “Given Africa’s competitive advantage due to rich endowments in renewable energy and green mineral resources, many African countries have a unique opportunity to benefit from low-carbon development and a just energy transition pathway appropriate to their national context.”
Following EU’s Dangerous Fossil Gas Push Will Put Africa In Danger: AU (Business Hallmark)
A technical committee of the African Union has sounded warning on the dangerous push for gas supply by the European Union, a situation climate activists say has capacity to put the continent in danger of locking Africa into fossil fuels for decades to come. In the midst of this , African leaders are said to be contemplating a new position that would prioritize natural gas and nuclear over cleaner, cheaper, renewables. Recall the technical committee of the African Union – made up of energy ministers had earlier forwarded an “African Common Position on Energy Access and Transition”. This position reflects essentially fossil gas and nuclear energy, at the expense of renewables, and is proposed for adoption by African Heads of State and was launched at COP27.This development is surfacing on the crest of the European Union’s recent vote in favour of a new rule that will consider fossil gas and nuclear projects “green,” making them eligible for low-cost loans and subsidies, and their scramble for Africa’s energy resources.
Time To Advance with Africa: Seizing Opportunities with A Vital Continent (US Chamber of Commerce and Industry)
Over the course of this year, the U.S. Chamber is elevating its longstanding policy engagement with the continent to capitalize on Africa’s shifts in business, technology, and domestic and global partnerships to seize opportunities with a critical partner on the verge of a major socioeconomic revolution. At each stop around the country, the roadshow will convene public- and private-sector leaders from the government and business community, in partnership with our local network of Chambers, for discussions, engagements, and panels explaining the opportunities for business to expand Africa’s commercial profile domestically, increase U.S. exports and investment, highlight tools to support new market entrants, and grow commercial opportunities.
How America Can Foster an African Boom (Foreign Affairs)
TICAD 8 offers Japan chance to rebuild influence in Africa (African Business)
Japan’s relations with the African continent are again in the spotlight as the eighth Tokyo International Conference on African Development (TICAD 8) in Tunisia nears. In the past, Tokyo largely exercised its influence on the continent through soft power and aid and development, while the private sector and commercial lenders have been more cautious. Yet Tokyo is hoping to give its private sector renewed impetus to invest in Africa and lend to the continent as economic engagement by its great geopolitical rival China drops off at the same time as the twin impacts of Covid-19 and the war in Ukraine hit the global economy.
The number of global powers seeking to play a substantial role in Africa’s political, diplomatic and economic life has steadily increased since the end of the Cold War. Until now, Japan’s role has been overshadowed by China, which has been the biggest source of bilateral project finance since the turn of the millennium, boosted by the provision of cheap loans for projects developed by Chinese contractors to keep them occupied at times of lower domestic demand.
India woos Africa with trade, tech and investment | DW | 10.08.2022 (DW)
Over 40 high-level ministers and dozens of businesspeople from various African countries visited India in July to attend a key investment meet aimed at boosting commercial relations between the two sides. Addressing the two-day gathering, attended by ministers from countries such as Cameroon, Burkina Faso, Eswatini, Ethiopia, Sudan and Nigeria, India’s Foreign Minister Subrahmanyam Jaishankar highlighted that India’s bilateral trade with Africa “reached $89.5 billion (€86.45 billion) in 2021-2022 compared with $56 billion the previous year.” India’s main exports to Africa are refined petroleum products and pharmaceuticals while Africa primarily exports crude oil, gold, coal and other minerals.
The South Asian nation’s Commerce and Industry Minister Piyush Goyal, meanwhile, stressed New Delhi’s intent to reach a trade pact with Africa. This is because the economic outlook, in the long run, “is going to be promising for both India and Africa, because this is where the markets and opportunities are present,” he said at the conclave.
Global economy
Ukraine grain export deal off to ‘a very good start’ – UN interim Coordinator (UN News)
Frederick J. Kenney Jr., interim Coordinator for the UN at the Joint Coordination Centre for the Black Sea Initiative, said at a regular UN press briefing via video link from Istanbul, Türkiye that the ships contain “over 370,000 metric tons of grain and other food stocks”. “Those vessels had been stranded in the three ports covered by the initiative when the war started”.
The initiative specifically allows for significant volumes of commercial food exports from three key Ukrainian ports in the Black Sea – Odessa, Chernomorsk and Yuzhny. During the agreement signing ceremony in Istanbul, Türkiye, on 22 July, Secretary-General António Guterres called the initiative “a beacon of hope” in a world that desperately needs it. He also announced the establishment of the Joint Coordination Centre to monitor implementation that would be hosted in Istanbul and include representatives from Ukraine, Russia and Türkiye.
UNCTAD spells out actions to curb cryptocurrencies in developing countries (UNCTAD)
Global use of cryptocurrencies has increased exponentially during the COVID-19 pandemic, including in developing countries. UNCTAD has released three policy briefs that delve into these risks and costs, including the threats cryptocurrencies bring to financial stability, domestic resource mobilization and the security of monetary systems.
While these private digital currencies have rewarded some, and facilitate remittances, they are an unstable financial asset that can also bring social risks and costs.
The policy brief entitled “All that glitters is not gold: The high cost of leaving cryptocurrencies unregulated” examines the reasons for the rapid uptake of cryptocurrencies in developing countries, including facilitation of remittances and as a hedge against currency and inflation risks. Recent digital currency shocks in the market suggest that there are private risks to holding crypto, but if the central bank steps in to protect financial stability, then the problem becomes a public one.
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Local news
Government Publishes Policy Proposals on Measures to Address Scrap Metal Theft (the dtic)
Government today published draft proposals to address widespread theft of copper cable and other forms of metal from public infrastructure that has crippled power supplies, left trains unable to operate and damaged public facilities in many parts of the country. The proposals have been developed following consultations by the Departments of Trade, Industry and Competition (the dtic), Police, National Treasury, Mineral Resources and Energy, Public Enterprises (including state owned enterprises), and Transport and was published in the Government Gazette today by Minister Ebrahim Patel.
The draft measures propose a six-month export prohibition on scrap and waste metal, including copper cable, together with a permit system for export of specified semi-processed metal products. This is the first of three envisaged phases, with further actions proposed in future that include a new, enhanced registration system for scrap buyers and sellers to improve monitoring, policing and law-enforcement, limitations on the ports and (potentially) border posts to be used for trade in scrap metal, and changes to the legislation to make it more difficult for stolen copper and metal to be traded.
“A disaster”: South African citrus fruit trapped in European ports (Fresh Fruit Portal)
After South Africa filed a complaint with the World Trade Organization (WTO) last month when the EU introduced new phytosanitary requirements, the trade dispute between the two parties continues. The measures came into force in July when ships carrying hundreds of containers full of South African fruit bound for Europe were already at sea and now, tonnes of oranges are rotting in containers stuck in European ports and could be wasted, according to a report by Euro news.
The new rules, which came at the height of the orange season, caught producers off guard. Some 3.2 million cartons of citrus fruit worth about €35 million were left with papers that were invalid on arrival.
In its WTO complaint, South Africa argues that the EU’s requirements are “not based on science”, “discriminatory” and excessive. Moreover, “it will add costs. And right now, that’s what no producer in the world can afford,” added Hannes de Waal, who runs the almost century-old Sundays River Citrus farm in South Africa’s southeast. On the other hand, the EU has expressed confidence that its measures are “WTO compatible”. A European Commission spokesperson said that the objective of the phytosanitary criteria is to protect the EU “from the potentially significant impact on agriculture and the environment, should this pest become established.” The dispute is now in the hands of the WTO. The parties have 60 days to negotiate a solution. Failing that, the complainant can request arbitration by a panel.
Kenya’s new vehicle exports rise 55 percent in half-year (Business Daily)
New vehicle dealers exported 137 units to the regional market in the half year ended June, marking a 55.6 percent jump from the 88 units they delivered to neighbouring countries the year before. Data from the Kenya Motor Industry Association (KMI) shows that the dealers, including Scania East Africa, Isuzu East Africa, and Inchcape Kenya exported their respective vehicle brands to Tanzania and Uganda.
The export market is limited due to differences in rules on vehicle age restrictions, with Kenya having one of the strictest laws that cap vehicle imports at a maximum of eight years from the date of manufacture. Kenyan companies, which have invested the most in local vehicle assembly, say harmonization of rules and incentives touching on the automotive sector could unlock more demand from the region. Kenyan firms currently hold small market shares in the neighbouring countries as measured by the exports they make against total sales.
“Looking at opportunities within the East African Community (EAC) region, the full implementation of the 25 percent duty on imported vehicles as per the EAC’s Common External Tariff (CET) would unlock tremendous benefits for the auto industry in the region,” Isuzu East Africa said recently.
Poor tax policy erodes Kenya’s investor attractiveness – survey (The Star, Kenya)
A rigid tax regulation environment in Kenya has seen Africa’s CEOs and leaders’ investor confidence in the country drop three positions in a year. According to the latest survey by Deloitte, commissioned by Africa CEO Forum, Kenya is ranked fifth with 23 per cent on Investment Attractiveness Index. This is a drop in rank from last year when the country was ranked second in the continent with an index of 6.9 per cent. “Market access and business environment are among the main criteria when choosing a site for investment,” the survey noted.
The tax change in the country’s betting, telecommunication, alcohol and corporate tax has skyrocketed in the past three financial years. Generally, in the continent, the survey notes that this year 78 per cent of the private sector leaders and CEOs are confident in the economic investor trends of African markets.
Kenyan farmers have a new market for avocado: China (The East African)
This week, Nairobi flagged off its first ever consignment of fresh avocados to China, cementing its place as the continent’s leading exporter of the fruit and the sixth largest globally. And it could be a jackpot for local farmers who had initially failed to meet the tough conditions set by Beijing.
“The net effect of accessing the Chinese market is that our avocado farmers will have more money in their pocket and increase employment in the agricultural sector,” said David Osiany, chief administrative secretary in Kenya’s Ministry of Industrialisation, Trade and Enterprise Development. At an estimated market value of $15.15 billion in 2022 according to Statista, avocado exports could transform the Kenyan economy.
EU tightens checks on fresh produce imports (Business Daily)
Europe has lowered the level of detection for chemical residues and pests on Kenya’s produce in a move that will raise the level of checks on exports of fresh produce. Exporters are now worried that a lack of compliance to the required Minimum Residue Level (MRL) by farmers will lead to frequent interception of the produce in the wake of increased checks. Europe, Kenya’s largest market for fresh produce has lowered the level to a bare minimum of LOD — level of detection — meaning that any hazard found whether high or low will be treated the same.
“These guides provide a clear explanation of what needs to be done in order to ensure that exported produce is in compliance with EU phytosanitary requirements,” said the EU in the new guidelines.
Kenya eyes US companies dumping China in Biden deal (Business Daily)
Kenya is vying to become the manufacturing hub for American companies seeking to relocate or diversify out of China in fresh trade talks Washington opened with Nairobi in July. Industrialisation and Trade Cabinet Secretary Betty Maina said Nairobi will be negotiating a deal that will lay ground for a manufacturing base for the US firms with a key focus on tech factories. “With all the changes globally, the US firms are looking at identifying new production bases for their products. They are diversifying out of their traditional production places in the Far East, particularly China,” Ms Maina told the Business Daily. “This gives us an opportunity as a country to attract these new investments. That is why it [proposed deal] is called trade and investment partnership that is informed by the need for US firms to diversify their production bases and for us to find new products [for export].”
US manufacturers operating in China are escalating decade-long plans to relocate production after being rattled by strict Covid-19 lockdowns in April and May, which further disrupted supply chains and bit into their profits.
Trade-offs for Uganda’s ‘Middle-Income’ status (Monitor)
After years of trying to attain the Middle Income status, Uganda, according to President Yoweri Museveni, has finally made it into the coveted bracket irrespective of tough economic times. In his 2022 State of the Nation Address, Mr Museveni, noted that despite locust invasion, the rising waters of the lakes, the floating islands, the landslides, the terrorist bombs, the Covid-19 pandemic and now the rising commodity prices largely caused by the Russian invasion of Ukraine, the country still managed to find its way into the middle income status. Currently, he says the economy is standing at $45.7 billion (Shs176 trillion) by the exchange rate method and at $131.6 billion (Shs507 trillion) by the Purchasing Power Parity (PPP) method. This, according to Mr Museveni means the GDP per capita is $1,046 (about Shs4 milion) which is slightly beyond the entrance points for the lower middle-income status of $1,036 (about Shs3.9 milion). Following some years of eluding the country, President Museveni disclosed: “We have passed that figure. Congratulations!”
The President was also quick to add: “However, to be declared a middle-income country, you should sustain this for two to three consecutive years. I am confident that we shall over perform in achieving that.”
Singapore, Rwanda, Kenya’s electronic single window hold lessons for Nigeria (Businessday)
While the Federal Government of Nigeria has for years been nursing the idea of introducing the electronic single window platform for cargo clearing at the ports, shippers in East African countries and Singapore are reaping the benefits of such a facility. The single window is a facility that allows parties involved in trade and transport to lodge information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. Kenya, Tanzania, Uganda, and Rwanda have fully embraced the Electronic Single Window System, according to a report by Trade Mark East Africa. They started with their heads of government coming together to usher in the system in one voice. The introduction of a single window, which ensures the East African countries align their Customs clearance systems to the new electronic platform, has made cargo clearance faster and more efficient.
National Agriculture Investment Plans at core deliberations in Dakar (IPPMedia)
The African Union Development Agency- NEPAD and African Union Commission convened in Dakar, Senegal, a three-day meeting to discuss the implementation of the National Agriculture Investment Plans and the progress therefor.
The main objective of the consultative meeting was to establish status of the NAIPs and RAIPs implementation in member states including linkages to the National development Plans and in the process identify lessons, challenges and opportunities that might have accelerated or delayed the implementation of the NAIPs and RAIPs.
Speaking during the opening ceremony, the CEO of the African Union Development Agency-NEPAD, Mrs Nardos Bekele-Thomas indicated that the meeting created an opportunity to engage all AU Member States and work towards strengthened financing and multi-stakeholder coordination on the Comprehensive Africa Agriculture Development Programme (CAADP) and said that it will also build on the outcomes and commitments of 2021 such as the UNFSS, COP26 and the N4G Summit.
The critical role of the NAIPs in the agriculture transformation agenda of the continent was brought to the fore once again at the Ordinary Session of the AU Assembly in Malabo, Equatorial Guinea where the Heads of State and Government adopted a Declaration on Accelerated Agricultural Growth and Transformation for Shared Prosperity and Improved Livelihoods and later referred to as the “Malabo Declaration”. The Malabo Declaration highlights seven commitments as indicators for progress and impact on the 10-year vision and goals of Africa Accelerated Agricultural Growth and Transformation (3AGT) agenda.
African trade and integration
AfCFTA records significant progress – Wamkele Mene (Ghana Business News)
The African Continental Free Trade Area (AfCFTA) agreement has made significant progress in the last few years, thanks to the commitment of the continent’s heads of state, Mr Wamkele Mene, Secretary-General of the AfCFTA Secretariat, has said. Speaking at a meeting with media managers, Mr Mene said the Secretariat had been able to make significant progress in trade rules, especially the rules of origin, which are key to measuring the movement of goods across borders.
“We have now been able to negotiate almost 90 per cent of the rules of origin. So, 5,000 products that we have in Africa we now have agreement close to 90 per cent. It is a remarkable achievement,” adding that every single item has to be negotiated. “We’ve produced all the certified documents to trade with and it is now up to the member states to cooperate diligently with the process to make sure that trade is fully exploited,” the Secretary General noted.
Strong regional value chains imperative for Africa’s economic resilience (Chronicle)
AS the world economy navigates through negative impacts of the on-going Russia-Ukraine war and its interplay with the Covid-19 pandemic, there is growing debate on rethinking global supply chain strategies with focus on strengthening resilience building mechanisms, especially for Africa, in order to cushion local economies and save jobs. The widescale Covid-19 lockdown measures experienced in the last two years and the Russia-Ukraine crisis so far this year, have clearly exposed the fragility of the globally interconnected economic system, putting on spotlight the need to bolster resilience building against future shocks, according to The Economist Magazine, June 2022.
For the African continent, which is largely dependent on supply chains linked mainly to the global north, the prevailing global disruptions pose a serious threat to many economies within the region.
Full agenda for the 42nd SADC Summit: Accelerating the industrialization drive (sardc)
The Democratic Republic of Congo will host the annual SADC Summit this month when southern African leaders will discuss regional integration and sustainable development. The theme for the 42nd Summit of Heads of State and Government is “Promoting industrialization through, agro-processing, mineral beneficiation, and regional value chains for inclusive and resilient economic growth.”
The theme continues the trajectory of the previous nine summits, building towards the integration goals of the Southern African Development Community (SADC), and resonates well with the vision of the Summit that conceived the industrialization drive, held in Victoria Falls, Zimbabwe in 2014 with a focus on economic transformation “through beneficiation and value addition”. This article is the first of a series to unpack some of the key issues expected to be considered by the 42nd SADC Summit on 17-18 August in Kinshasha.
‘Sadc cannot progress without industrialisation’ (Chronicle)
SOUTHERN African Development Community (Sadc) executive secretary, Mr Elias Magosi, has called for enhanced positive exploitation of key value chains such as agro-processing and mineral beneficiation, stressing that “the region cannot progress without industrialisation”. As the bloc focuses on development of key infrastructural projects that drive regional integration as outlined in the Regional Indicative Strategic Development Plan (RISDP) 2020-2030, Mr Magosi says robust industrialisation must take centre stage if the region is to achieve desired economic integration. Speaking during a courtesy call on him by the African Development Bank (AfDB) Group senior vice president, Ms Bajabulile Swazi Tshabalala, on the sidelines of the recent meeting of the Committee of Ministers of Finance and Investment and Peer Review Panel, held in Lilongwe, Malawi, Mr Magosi said infrastructure development and industrialisation were key components towards Sadc regional integration.
EU trade relations with Southern African Development Community (SADC) (European Commission)
The ECOWAS Bank for Investment and Development (EBID) has officially released the 2022 edition of the West Africa Development Outlook (WADO), which takes stock of socio-economic developments of the previous year and presents a macroeconomic outlook for the year 2022. The WADO discusses the socio-economic challenges of the times and postulates policy interventions that could help ease these challenges.
The 2022 WADO, which is themed, “Navigating Global Shocks through Structural Transformation and Trade”, discusses how the ECOWAS sub-region can mitigate the recent price escalation by increasing local production capacities, improving intra-regional trade and embarking on a deliberate structural transformation agenda. It also discusses the causes of the recent price hikes as being structural and the need for cautious monetary policy interventions.
Africa must strive to improve digital infrastructure – President Chakwera (Ghana Business News)
Dr. Lazarus Chakwera, President of the Republic of Malawi has noted that the vision for a “digital Africa” can only be realized if African Governments invest in indigenous solutions and workforce to drive the agenda of transformation. “Africa must be a leader in this revolution with its youthful population who are already strategically positioned to create tailored made digital solutions for Africa’s problems,” President Chakwere stated at the 11th African Internet Governance Forum (AfIGF 2022) in Lilongwe, Malawi. The forum which was on the theme: “Digital Inclusion and Trust in Africa,” was organized by the government of Malawi in collaboration with the African Union Commission (AUC) and the United Nations Economic Commission for Africa (UNECA).
Dr. Amani Abou-Zeid, African Union Commissioner for Infrastructure and Energy said “since 2020, digital technologies have proven to be the lifeline that made our communications easy, our work going and businesses functioning.
Fintech, other knowledge-intensive services could drive Africa’s prosperity, boost inclusion (Africa Renewal)
The UNCTAD report touts Opay, a Nigerian point of sale platform and mobile payment service company, which raised $400 million in 2021 and currently boasts 160 million users, including millions in the huge unbanked population. Despite such progress, hurdles remain in the way. The report lists “restricted access to finance, poor integration in regional and global markets, and a limited skills base.” As well, the fintech sector is not developed enough to support production.
AfDB to deliver climate-adapted wheat, other seeds to 20m African farmers (BusinessAmLive)
The African Development Bank (AfDB) says it is set to deliver climate-adapted, certified wheat and other staple crops seeds to 20 million farmers in Nigeria and other African countries.
The initiative, which includes the delivery of seeds and increased access to fertilisers, would be done through the bank’s African Emergency Food Production Facility as part of activities to tackle the food crisis in African countries. Akinwumi Adesina, president of the multilateral finance development institution, stated this in a recent document titled “Averting an African Food Crisis: The African Food Production Facility”.
Speaking on AfDB’s plan towards addressing the challenge, Adesina said the bank in May established a $1.5 billion African Emergency Food Production Facility and in less than 60 days, it put into action $1.13 billion-worth of programmes under the facility across 24 African countries.
Fact Sheet: U.S. Strategy Toward Sub-Saharan Africa (The White House)
Sub-Saharan Africa plays a critical role in advancing global priorities to the benefit of Africans and Americans. It has one of the world’s fastest growing populations, largest free trade areas, most diverse ecosystems, and one of the largest regional voting groups in the United Nations (UN). It is impossible to meet today’s defining challenges without African contributions and leadership. The region will factor prominently in efforts to: end the COVID-19 pandemic; tackle the climate crisis; reverse the global tide of democratic backsliding; address global food insecurity; promote gender equity and equality; strengthen an open and stable international system; shape the rules of the world on vital issues like trade, cyber, and emerging technologies; and confront the threat of terrorism, conflict, and transnational crime.
Building on the Biden-Harris Administration’s actions and commitments to deepen our engagement and partnerships in Africa during the past year, the strategy articulates our new vision for a 21st Century U.S.-African Partnership.
The new U.S. Strategy Toward Sub-Saharan Africa represents a reframing of Africa’s importance to U.S. national security interests. We will pursue four main objectives in sub-Saharan Africa:
Vital Partners, Shared Priorities: The Biden Administration’s Sub-Saharan Africa Strategy (United States Department of State)
Speech by Antony J. Blinken, Secretary Of State: Future Africa, delivered in Pretoria, South Africa, on August 8, 2022
The United States and the Republic of South Africa (United States Department of State)
China to overtake the EU as Africa’s biggest trade partner by 2030 (The Africa Report)
Asia sees Africa’s youthful population as a source of labour for its manufacturing companies and a market for its consumer goods. Although trade should be reciprocal, the continent’s trade deficit is large as it continues to import significantly more than it exports.
In recent years, the West’s already fragile reputation in Africa has worsened. The only western institution still properly active seems to be the IMF, while China on the other hand has, broadly speaking, kept up its commercial operations. Question marks are also being raised in Africa over the motives behind the re-engagement of the EU and the US … [raising] memories of past commitments and are viewed merely as a desire to counter Chinese influence rather than work with African business partners. Western engagement in Africa is not changing very much as times are changing, with the exception of more dynamic markets such as New York City that are funding startups on the continent, although the EU and US want to ensure that China does not continue to become more powerful there.
The EIU said: “Question marks are also being raised in Africa over the motives behind the re-engagement of the EU and the US … [raising] memories of past commitments and are viewed merely as a desire to counter Chinese influence rather than work with African business partners.”
As Abou El Houda, Managing Partner of Houda Law Firm in Senegal and Côte d’Ivoire told Mining Review Africa: “The challenge for Africa is in establishing where its interests converge with China’s, where they diverge, and how areas of convergence can be shaped to advance African development priorities.” Although this recent plan to increase trade with Africa by China seems to imply that the move away from an over-reliance is not happening, many governments on the continent are now more aware of the so-called ‘Chinese debt trap’ that countries like Zambia and Angola fell into post-Covid, and as such are able to better pick and choose which trade/financial flows with China works for them.
Global economy
Fostering the digital economy in small island developing states (UNCTAD)
UNCTAD has launched a new project to strengthen the capacities of 38 small island developing states (SIDS) in Africa, the Caribbean and Asia and the Pacific to adopt trade policies that develop the digital economy and enhance crisis responses. Digital technologies and e-commerce have immense potential to support the participation of SIDS in international and regional markets. They can also help build resilience and promote stronger recovery from disasters. But the digital economy is in its early stages of development in SIDS, whose common challenges to digital transformation include limited access to affordable infrastructure. And the COVID-19 pandemic has reinforced pre-existing bottlenecks in SIDS’ e-commerce ecosystem.
Importance of building evidence for gender-sensitive trade policies (Trade for Development News)
Inclusive programming has been central to the EIF’s Aid for Trade interventions in least developed countries (LDCs). This emerged from a recognition that the gains from trade are amplified when they generate opportunities for women and youth and enable micro, small and medium-sized enterprises (MSMEs) to integrate into global trade.
The OECD-WTO monitoring and evaluation (M&E) exercise has noted that mainstreaming gender into national strategies is a continuous process. This reflects our ongoing work which has been to partner with governments in LDCs to formulate and implement gender-sensitive trade policies and regulations, as well as to improve the collection of gender-disaggregated trade data.
The best policies are evidence-based, but they can be challenging to formulate in contexts where data do not exist.
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Tons of fruit stranded in Europe as SA battles EU over import rules (EWN)
Millions of boxes of oranges are spoiling in containers stranded at European ports as South Africa and the European Union lock horns in a dispute over import rules, citrus growers have said. South Africa, the world’s second-largest exporter of fresh citrus after Spain, filed a complaint with the World Trade Organisation (WTO) last month after the EU introduced new plant and health safety requirements that orange farmers say threaten their survival. The measures came into force in July as ships were already at sea carrying hundreds of containers full of South African fruit to Europe, resulting in them being held up on arrival, South Africa’s Citrus Growers’ Association (CGA) says. “It’s a complete and utter disaster,” CGA’s CEO Justin Chadwick told AFP by phone. “Food that has fantastic quality and is safe is (just) sitting there -- and this at a time when people are worried about food security.”
The EU rules aim at tackling the potential spread of an insect called the false codling moth, a pest native to sub-Saharan Africa that feeds on fruits including oranges and grapefruits.
Farmers fight on despite lost export markets (Food for Mzansi)
Farmers in South Africa who once relied on Russia and Ukraine as key export markets, are trying their level best to find alternative destinations for their top crops. Exporters are now setting their sights on Africa, where the two countries at war have created potentially lucrative gaps. According to Western Cape fruit exporter and managing director at Riyp, Uzair Essack, more and more farmers – mostly apple, pears, citrus and grape producers – have approached Riyp to help them find new markets.
“A lot of farmers [who exported to Russia and Ukriane] are reaching out to us to handle their exports because we focus on Africa, the Middle East and Ireland. So, those three markets have seen more inflow recently,” Essack says.
South Africa and Botswana to improve rail freight links (Reuters)
South Africa and Botswana have agreed to fund the improvement and extension of rail links between the countries in a bid to boost trade and better connect Botswana to export markets, South African state-owned logistics firm Transnet said on Friday. Transnet Freight Rail (TFR) will collaborate with Botswana Rail (BR) to fix parts of the 126 km (78 mile) rail line between Swartruggens, in South Africa’s North West province, and Mafikeng, on the border with Botswana, helping South Africa’s landlocked northern neighbour get its minerals, including thermal coal, to market. European countries are scrambling to meet their coal needs after a ban on imports of the fossil fuel from Russia, and coal-rich countries like Botswana are looking to cash in on the surge in demand.
Kenya launches its National AfCFTA Implementation Strategy (UNECA)
“To fast-track implementation of the African Continental Free Trade Area (AfCFTA), the development of an implementation strategy is critical as it leverages deeper integration within the framework of AfCFTA to facilitate an expansion of Kenya’s trade and investment in Africa” says Cabinet Secretary Betty Maina, Kenya Ministry of Industrialization, Trade and Enterprise Development during the launch of the pdf Kenya AfCFTA Implementation Strategy (4.87 MB) .
Competition From Kenya Causes Sluggish Khat Exports (The Reporter Ethiopia)
Khat exporters in Ethiopia face a business slowdown following a new deal signed between the governments of Kenya and Somalia. Ethiopia had a comparative advantage for the last two years after the Somalia government placed a ban on Khat imported from Kenya, with no reason given during the suspension. A protracted maritime boundary dispute has strained relations, and Somalia has accused Kenya of interfering in its internal affairs. Nairobi has countered by accusing Mogadishu of using it as a scapegoat for its own political and security problems.
Last week, Business Daily reported that Kenya had exported USD 2.2 million worth of Miraa (Khat) within four days after the official lifting of the suspension. While this is a big win for traders in Kenya, the story is different for their counterparts in Ethiopia. “It is now a peak season and we expect exports to grow, not decline, which is happening right now,” said Fahmi Abdulmajid, an exporter of Khat. “In my experience, demand fell by 50 percent from Somalia, which is shocking to say the least. “Ethiopia exported almost USD 392 million worth of Khat during the last fiscal year, exhibiting almost no change from the previous year, though it is USD 100 million higher than the figure registered before Somalia placed a ban on Kenya’s khat.
USAID assists 106 Namibian exporters (Namibian)
THE United States Agency for International Development (Usaid) TradeHub has assisted 106 Namibian firms to engage in business-to-business events with potential buyers, showcase their products, and start new business discussions. According to Jessica Long, United States (US) embassy chargé d’affaires, more than 6 400 qualifying exports from eligible sub-Saharan African countries, including Namibia, have had access to the US market through the African growth and Opportunity Act (Agoa).Long was speaking at a stakeholders meeting in Windhoek to reflect on the six-year southern Africa trade and investment hub (Usaid Trade Hub)
She said through the trade hub, the US has helped Namibian firms achieve Agoa and non-Agoa-related exports valued at US$2,7 million (about N$43 million) over the past three years.
Nigeria’s central bank urges manufacturers to approach development financing institutions for loans (Nairametrics)
The Central Bank of Nigeria has urged the Manufacturers Association of Nigeria (MAN) to approach the development financing institutions like the Development Bank of Nigeria and Bank of Industry for their funding needs.
This was disclosed by Mr Eboagwu Ezulu, Deputy Director, Financial System Stability Directorate of the Central Bank of Nigeria (CBN), at the first National Stakeholders Conference organised by the Association of Corporate Affairs Managers of Banks (ACAMB) in partnership with the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
Mr Eboagwu Ezulu advised MAN to approach the development financing institutions for loans, stating that these institutions were created in collaboration with the apex bank.
“Have we the manufacturing sector approached those entities to utilise the funds available rather than asking the commercial banks? Banks are supposed to approach the CBN on behalf of their customers to solve these problems; the commercial banks lend for credit purposes, and they have the primary responsibility to protect their depositors.”
Buhari, address threats to food security now (Punch)
NIGERIA is undergoing a severe food crisis fuelled mainly by the raging insecurity threats in all parts of the country. The Minister of Agriculture and Rural Development, Mohammad Abubakar, has recently admitted this reality, warning that with the current prices of food items, many Nigerians may plunge deeper into poverty if proper measures are not taken. On the President, Major General Muhammadu Buhari (retd.), and the state governors lie the responsibility to urgently take measures to stave off famine in the country. Abubakar’s warning is neither new nor an isolated missive. As far back as 2015, such alerts have been raised by many international bodies, NGOs and experts about the imminent danger of this calamity, but the federal and state governments have failed to act with dispatch or mount effective countermeasures.
Algeria: Strengthening Resilience to Better Address Future Shocks (World Bank)
Nonhydrocarbon sectors in Algeria are expected to recover to pre-pandemic levels in 2022 and trade and budget balances will also show a marked improvement this year, according to the latest edition of the World Bank’s Algeria Economic Update. Issued in French under the title Renforcer la résilience en période favorable (Strengthening resilience in favorable times), the report is part of a series of semi-annual publications aimed at analyzing economic development trends and the outlook for Algeria. The Spring 2022 edition reflects the data and information available as of June 17, 2022.
Supported by increased hydrocarbon production and exports, Algeria’s GDP is estimated to have recovered to its pre-pandemic level in the fourth quarter of 2021. The hydrocarbon sector and a stronger recovery in the services sector were the main drivers of Algeria’s economic growth in 2021. The economic rebound, however, suffered from a drop in agricultural activity and an incomplete recovery in the public manufacturing sector. Job creation also lagged and by the end of 2021, the number of registered jobseekers was significantly higher than the number recorded before the pandemic. Non-hydrocarbon GDP remained 1.6% below its 2019 level and inflation continued its upward trend, in part due to international factors. In response, the authorities have implemented a set of measures to limit the impact of such rising prices on the purchasing power of households, including the introduction of unemployment benefits for first-time job seekers.
African trade and integration news
On 25 June 2022 during the 9th Council of Ministers Meeting, the AfCFTA secretariat launched two major tools deemed key in accelerating trading under the AfCFTA; the AfCFTA E-Tariff Book and the Rules of Origin Manual. Both were developed with the support of the World Customs Organization and the European Union under the EU-WCO HS and RoO Africa programmes.
The AfCFTA e-Tariff Book contains all the information on the tariff schedules and applicable tariff rates for all of the AfCFTA State Parties structured based on the WCO 6 digits Harmonized System (HS). This tool is a milestone as it will facilitate the publication of information on rates of duty applied by AfCFTA State Parties under their Schedules of Tariff Concessions with several search functionalities, comparison of applicable rates between all state parties and option to download the results, hence making it a practical instrument for trading under the AfCFTA Agreement. This tool will further include key information on AfCFTA RoO and could be further enhanced as one stop platform for all relevant stakeholders.
African economic blocs to meet in Kigali to explore AfCFTA opportunities (The New Times)
Business executives from different African trading blocs are set to meet in Kigali next week, to draw strategies through which they can tap into opportunities offered under the African Continental Free Trade Area (AfCFTA) The two-day meeting, according to the CEO of East African Business Council (EABC) John Bosco Kalisa, will bring together traders from the East African Community, the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Cooperation (SADC). “As a follow up to the recommendations and action plan from the Accra meeting, the East African Business Council will meet in Kigali along with SADC and COMESA to jointly position themselves in the efforts towards preparing the private sector to benefit from the AfCFTA” Kalisa said.
The blocs’ meeting is to develop a joint position paper on matters detailing the private sector involvement in the implementation of the AfCFTA, develop joint capacity building initiatives for the RECs Business Council members to enhance participation in the AfCFTA initiatives, as well as development of an Action Plan for collaboration between the Councils.
African Continental Free Trade Area Secretariat launches the AfCFTA Hub (GhanaWeb)
The AfCFTA Hub digital platform was launched on July 8th, 2022 at the Boma of Africa event convened to mark Africa Integration Day. The AfCFTA Hub platform was launched on behalf of AfCFTA Secretariat by the African Union AfCFTA Champion, H.E Mahamadou Issifou, former President of the Republic of Niger and 2020 Ibrahim Prize Laureate. The Boma of Africa was jointly convened by the African Union (AU), the AfCFTA Secretariat, AfroChampions and the Africa Center for Disease Control and Prevention (Africa CDC). It was supported by the AfCFTA Hub Network, with support from Afreximbank, MTN, Ecobank, the Village Foundation, IC Publications, Dominion Television and APO.
The launch of the AfCFTA Hub also coincided with the 3rd Anniversary of the entry into force of the African Continental Free Trade Agreement (AfCFTA). The launch event also featured a prize ceremony for a hackathon organised to mark the 3rd Anniversary of the AfCFTA and to demonstrate the benefits of an “AfCFTA Hub” to Small & Medium Enterprises (SMEs) and startups around the continent. The following companies as well as one individual were recognized as finalists at the Hackathon Prize Ceremony.
PAPSS sets platform for single currency (GhanaWeb)
The Pan African Payment and Settlement System (PAPSS) offers an opportunity for countries in the ECOWAS region to expedite the long-awaited goal of a single currency within the West Africa Monetary Zone, Head of Mission, AfreximBank, Eric Monchu Intong, has said. Mr. Intong, who was speaking on the theme: ‘Trade Finance and Pan African Payment Systems’ at the UPSA Law School-ACCA Africa Trade Roundtable V, said.
“The PAPSS platform offers the opportunity to know the average rate of conversion of cedi to naira over the past decade using the dollar as an intermediary to benchmark the rate to a specific amount. Same criteria must be applied to all other African currencies. This will totally eliminate convergence criteria with the dollar”. This process, he said, will easily renew the interest on the common currency agenda for the West Africa Monetary Zone, allowing the sub-region to easily determine whether to move naturally toward cedi, naira or the CFA, hence, narrowing interests to a single currency.
Boosting intra-African trade will power post-COVID-19 recovery and foster food security (Africa Renewal)
The COVID-19 pandemic is disrupting Africa’s development trajectory. It is exacting a substantial socio-economic toll and putting the survival of half of the continent’s micro, small and medium-sized enterprises (MSMEs) at risk. Four in five African businesses are witnessing a dramatic reduction in sales. As African countries restart their economies and phase out COVID-19 restrictions, the ripple effects of the Ukraine crisis increase daily. The effects are particularly acute in terms of food security, given the continent’s reliance on food imports from the region of conflict. In addition, the rising cost of fertilizers and the impact of climate change are exacerbating food shortages. These shocks have slowed progress towards achieving SDG2, which is zero hunger by 2030.
A 2021 joint publication by FAO, the United Nations Economic Commission for Africa (UNECA), and the African Union titled Africa: Regional Overview of Food Security and Nutrition indicated that over one-fifth of the continent’s population faced hunger in 2020. That is about 281.6 million people—46.3 million more than the figure for 2019.
Due to current harsh economic realities in countries, the International Monetary Fund is encouraging governments worldwide to subsidize the cost of food and energy for their poor. Such a social intervention presents a huge fiscal challenge for many African countries.
SADC Industralisation Week aims to foster new opportunities for intra-African trade and investment (SADC)
My government attach great importance to SADC regional integration efforts and in particular to all efforts towards creating a strong economic block through the promotion of industrialisation. This was said by the Prime Minister of Democratic Republic of Congo (DRC) His Excellency Mr. Jean- Michel Sama Lukonde Kyenge, when officially opening the 6th SADC Industralisation Week (SIW) held in Kinshasa, DRC on the 2nd August, 2022. He applauded the SADC Founding Fathers for the strong foundation laid down both at political and socio-economic level for the integration of the region and urged delegates to be resilient and to remain steadfast in the implementation of the resolutions that will emerge from the week-long event.
The SADC Deputy Executive Secretary for Corporate Affairs, Ambassador Joseph Nourrice underlined that the SIW facilitates establishment of partnerships among stakeholders to enhance cooperation and collaboration in the implementation of the SADC Industrialisation Strategy and Roadmap (2015-2063), both at the national and regional levels. He said the event also provides a platform for regional companies, youth and women to showcase their innovations towards industrialisation.
The Southern African Development Community (SADC) remains focused on development of infrastructural projects that drive regional integration as outlined in the Regional Indicative Strategic Development Plan (RISDP) 2020-2030. This was said by the SADC Executive Secretary, His Excellency Mr. Elias M. Magosi, during a courtesy call on him by Her Excellency Ms. Bajabulile Swazi Tshabalala, Senior Vice President of the African Development Bank Group, on the margins of the meeting of the Committee of Ministers of Finance and Investment and Peer Review Panel, held in Lilongwe, Malawi on 28th July, 2022. The Executive Secretary stated that infrastructure development and industrialisation are key components towards SADC regional integration. He highlighted that development of infrastructure projects such as roads, railway lines, information communication technology, amongst others, are inevitable ingredients to facilitate seamless movement of people, goods and services in order to bring the desired developmental impact
EAC Delegation in South Korea to set ground for grand bilateral Economic and Social Cooperation (EAC)
The East African Community (EAC) has officially kick-started engagements with the Republic of Korea (ROK) on a grand economic and social cooperation between the EAC and South Korea. The engagement, in the form of a bilateral cooperation seminar, was held at the Korea Chamber of Commerce (KCCI) in Seoul. This seminar is a follow-up of an earlier bilateral meeting held between the EAC Secretary General and South Korea’s Ambassador to the United Republic of Tanzania earlier this year. The partnership seminar was convened under the theme: Exploring Economic Cooperation between the ROK and the EAC.
“The expansion of the EAC following the admission of the Democratic Republic of Congo into the Community has not only substantially increased the market population but also the GDP of the EAC, thereby making the region an attractive trade and investment destination,” EAC Director of Trade, Al-hajji Rashid Kibowa added.
Infrastructure development, ICT and the automobile industry, Trade in Services, Human Capital Development and mineral development were highlighted as the core areas for Korea - EAC support and cooperation. These areas were identified taking full advantage of Korea’s cutting-edge digital technology and its thriving automotive- manufacturing industries.
Northern Corridor cited most costly in the world (The East African)
Transporters using the Northern Corridor have been bearing some of the highest costs in the world, reflecting how shortage of arteries is impeding the competitiveness of the East African region to trade. According to a survey carried out by the Shippers Council of East Africa (SCEA), transport costs in the region are estimated at $1.8 per km per container against international best practices of $1 per km per container.” The most expensive route to transport cargo was Kampala-Mombasa at $2.5 per tonne followed by Mombasa-Kampala at $2.17, Dar es Salaam-Kampala $1.17 and Bujumbura-Dar es Salaam at $1.02 per tonne,” the SCEA Logistics Performance Survey 2021 report says.
Ahead of the 2022 United Nations Climate Change Conference (COP27) the Economic Commission for Africa (ECA) and the UN Climate Champions hosted the “African Roundtable on Initiatives to Accelerate Climate Action and Advance the SDGs” and “Coordination Meeting of the African Group of Climate Change Negotiators and National UNFCCC Focal Persons” from 2-4 August, 2022. The events brought together key stakeholders from both public and private sectors, to showcase both the success stories of private sector investments in climate areas as well as investment-ready climate initiatives in Member States towards ensuring enhanced actualizing enhanced climate action at scale and speed to strengthen African economies and build resilience.
USAID TradeHub facilitates N$43 million worth of AGOA exports over three years (Namibia Economist)
The US Embassy on Wednesday held a meeting with the government and representatives of the United States Agency for International Development (USAID) to reflect on the past six years of the Southern Africa Trade and Investment Hub (USAID TradeHub). The event brought together Namibian manufacturers and exporters to tell about their experiences, successes, and lessons learned in enhancing the flow of trade and capital between Namibia, South Africa, and the United States, especially under the African Growth and Opportunity Act (AGOA), said US Embassy spokesperson, Perry Stamp, in a statement. The US Embassy’s Chargé d’Affaires, Jessica Long stated, “The United States is a proud partner of the private sector in Namibia, particularly firms seeking to explore opportunities in the South African and U.S. markets through the AGOA.”
The US is revisiting its trade relations with African countries: key issues on the table (The Conversation)
Last year, the US’s Biden administration announced plans to increase two-way trade and investment between the US and Africa. The starting point was a revamp of the Trump-era “Prosper Africa initiative”. As American secretary of state Antony Blinken visits three African nations – South Africa, Democratic Republic of Congo and Rwanda – Kefa Otiso and Francis Owusu provide insights into US-Africa trade relations and what’s being planned to improve them.
In July 2021, the Biden-Harris administration launched the Prosper Africa Build Together Campaign. The idea was to elevate and energise the US’s commitment to trade and investment with countries across the African continent. The revamped Trump strategy includes a targeted, long-term effort to connect American and African businesses with new trade and investment opportunities. Key sectors being targeted are clean energy and climate smart solutions, health, and digital technology. Through the initiative, the US is promising to help drive billions of dollars of investment to Africa and to work towards equitable access to the benefits of trade and investment. It also envisages harnessing the power of small businesses, especially those led by women and members of the African Diaspora.
What should a good trade pact look like? This is a difficult question to answer, given the many possible configurations of a potential trade pact. Nevertheless, we offer two key elements of such a trade pact. First, it should be truly multilateral unlike, for example, the prevailing US-Africa trade agreement, the African Growth and Opportunity Act (AGOA) – which is a unilateral US government policy. A truly multilateral pact would recognise African leaders as equal partners and ensure that they have an opportunity to properly engage in US-Africa trade negotiations.
China’s trade with Africa gets boost from rising commodity prices despite impact of Covid controls (Yahoo Finance)
Trade between China and Africa grew by 16.6 per cent to US$137.4 billion in the first half of this year, boosted by a recovery in commodity prices, especially oil. China imported goods worth US$60.6 billion from Africa, a 19.1 per cent increase compared with the same period in 2021, according to the latest figures from China’s General Administration of Customs. Meanwhile, exports to the continent increased by 14.7 per cent to US$76.8 billion. However, growth was fastest in the earlier part of the year, with analysts attributing the drop-off to pandemic-related supply chain disruptions including the Shanghai lockdown and port closures.
Global economy news
ICC calls for cautious optimism as markets begin to stabilise (ICC)
The International Chamber of Commerce (ICC) has called for cautious optimism following the publication of the third report of the UN Secretary General’s Global Crisis Response Group examining the global impact of Russia’s invasion of Ukraine The findings of the third report of the UN Secretary General’s Global Crisis Response Group call for cautious optimism. Markets for key commodities are beginning to stabilise – helped significantly by the departure of the first grain shipment from Odesa this week. This is certainly cause for hope. But that must not breed complacency as to the nature of the situation we face.
The evidence set out clearly in the third report shows that the rising cost of food and energy now threatens social, political and economic stability in all regions of the world. Current fertiliser shortages risk precipitating an unprecedented global hunger crisis in 2023, millions risk being pushed into extreme poverty in the coming months and more than 20 countries are at high risk of sliding into default.
2022 External Sector Report: Pandemic, War, and Global Imbalances (IMF)
Global current account balances—the overall size of current account deficits and surpluses—continued to widen in 2021 to 3.5 percent of world GDP, and are expected to widen again this year. The IMF’s multilateral approach suggests that global excess balances narrowed to 0.9 percent of world GDP in 2021 compared with 1.2 percent of world GDP in 2020.
The pandemic has continued to affect economies’ current account balances unevenly through the travel and transportation sectors as well as a shift from services to goods consumption. Commodity prices recovered from the COVID-19 shock and started rising in 2021 with opposite effects on the external position of exporters and importers, a trend that the war in Ukraine is exacerbating in 2022.
The medium-term outlook for global current account balances is a gradual narrowing as the impact of the pandemic fades away, commodity prices normalize, and fiscal consolidation in current account deficit economies progresses. However, this outlook is highly uncertain and subject to several risks. Policies to promote external rebalancing differ with positions and needs of individual economies.
Exploring blockchain technology to transform agrifood systems (FAO)
To feed more people without exacerbating the climate crisis, we urgently need our agrifood systems to become more efficient, inclusive, resilient and sustainable. One way of achieving such an ambitious objective is to leverage the potential of modern, innovative technology. And with all the technologies that have emerged, blockchain is truly one that holds great promise. Born in 2009 as an application for the virtual currency Bitcoin, blockchain is essentially a shared and decentralized database. However, unlike traditional databases, it uses a digital ledger that is simultaneously duplicated and distributed across a network of nodes on computers or servers. As new data comes in, it is entered into a fresh block. Once the block is filled with data, it is chained onto the previous block and the data within it is locked.
There are two key advantages to this distributed ledger technology: Records are immutable, since they are virtually impossible to change or hack; and the decentralized nature of the network means no single person or group controls the data, so fraud is less likely.
Such benefits go well beyond the world of virtual currencies. When it comes to producing food for human consumption, feed for livestock or timber for homes, traceability and transparency ensure that we know that such products come from a safe source or that materials are from a sustainable provider, enhancing food safety and making recalls easier. Blockchain can also facilitate trade and provide greater legal certainty to land tenure systems.
Despite this alarming situation, major oil and gas companies recently reported record profits, which Secretary-General António Guterres, who launched the brief today, called “immoral.” “The combined profits of the largest energy companies in the first quarter of this year are close to $100 billion. I urge governments to tax these excessive profits, and use the funds to support the most vulnerable people through these difficult times,” he said. The GCRG’s third brief recommends that governments find the most effective ways to fund energy solutions, such as publicly funded cash transfers and rebate policies, to protect vulnerable communities everywhere, including through windfall taxes on the largest oil and gas companies. At the same time, the brief urges a transition to renewables.
Climate negotiations: time to implement planetary health promises (The Lancet)
Six months on from the Glasgow climate talks, countries are struggling to deliver on their Paris Agreement promises.
It had been six months since the COP26 UN climate conference in Glasgow, Scotland; where there had been a renewed sense of momentum for the promises of the Paris Agreement. Glasgow saw the finalisation of the so-called rulebook of the Paris Agreement, and a renewed commitment by countries to more ambitious climate plans, as part of a Glasgow Climate Pact.
But a lot can change in six months, and the diplomats gathered in Bonn have had to navigate the technical climate talks in the background of a deadly cocktail of unfolding events in the real world, including: the invasion of Ukraine; escalating food and energy crises; continuing pandemic reverberations; and a constant barrage of climate change-fuelled extreme weather events in the first half of 2022.
This policy brief provides an overview of recent developments at the Bonn climate talks and explores their relevance to health, and the signals about what we might expect at COP27.
India and Brazil in the Global Multilateral Order (Observer Research Foundation)
India and Brazil are celebrating 74 years of diplomatic relations in 2022. In more recent years, the two countries have elevated their relationship based on a common global vision, commitment to development, and shared democratic values. They established a strategic partnership in 2006, and sought to deepen it in 2020 by agreeing to an Action Plan to Strengthen the Strategic Partnership. Today the two countries work together in various international forums, including platforms such as BRICS, IBSA, G4, G20, BASIC, as well as the United Nations in the wider multilateral context; they engage in summit meetings, high-level visits, and exchanges. Trade and investment between them have grown over the years, as has cooperation in important areas such as bioenergy.
Both countries have a long and robust tradition of engaging in forums in which they have often developed strong and enduring partnerships. Greater knowledge of each other’s actions would allow potential interactions and promote both countries’ interests.
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Local news
Kenya launches national trade strategy (Kenya News Agency)
Kenya has launched its National African Continental Free Trade Area (AfCFTA) Implementation Strategy 2022-2027 to boost opportunities for industrial diversification, investment and job creation.
The strategy also aims at deepening relations with other countries in the African Continent which has a population of over 1.3 billion people and a combined Gross Domestic Product of over USD 3.4 trillion.
Speaking during the launch of the Strategy and unveiling of AfCFTA National Implementation Committee held at a Nairobi hotel today, the Cabinet Secretary for Industrialization, Trade and Enterprise Development, Ms. Betty Maina said AfCFTA will help the country’s trade expansion into untapped African markets.
Agribusiness entrepreneurs must take advantage of AfCFTA (BusinessGhana)
Ghana: The Managing Director of Agricultural Development Bank Plc, Dr. John Kofi Mensah has disclosed that the African Continental Free Trade Area (AfCFTA) will help agribusiness entrepreneurs to access the African Market.
The AfCTA is a single market (duty-free-quota-free) trading bloc covering the entire African Continent with a total population of 1.3 billion to create a single continental market for goods and services.
Speaking on the side of the launch of the National AfCFTA Policy Framework Action Plan at the Kempinski Hotel, Gold Coast City in Accra, Dr. Kofi Mensah said Ghanaian entrepreneurs in the Agricultural sector can access a market with a combined Gross Domestic Product of almost USD3.4 trillion.
KAM says home hurdles will hurt Kenya in Africa trade deal (The Star Kenya)
The business costs, bureaucratic policies and unfriendly regulations threaten to derail Kenya from tapping into the African market, local manufacturers now say.
The Kenya Association of Manufacturers said the hurdles expose Kenyan industries to low export volumes, as their products are expensive compared to other key markets.
This is against cheaper imports from other African markets, under the African Continental Free Trade Area (AfCFTA) which seeks to address tariff and non-tariff barriers.
However, Kenya which is among the 49 member states that have ratified the agreement, lacks product competitiveness due to quality challenges, high trade investment and trade costs.
African trade and integration
South Africa-Botswana roundtable cements bilateral relations (SAnews)
President Cyril Ramaphosa says government would like to see “far greater levels of trade and investment” between South Africa and Botswana. He was giving his closing remarks at the High Level South Africa-Botswana Business Roundtable held at the Gaborone International Convention Centre in Botswana on Thursday.
“His Excellency [Botswana] President [Mokgweetsi] Masisi and I agreed that we need to encourage business in our respective countries to invest in catalytic development projects, particularly infrastructure. It has been pleasing to have representatives of our respective state-owned companies share their perspectives on the importance of infrastructure development to our common industrialisation efforts.
African Economic Blocs to Meet in Kigali to Explore AfCFTA Opportunities (Top Africa News)
Business executives from different African trading blocs are set to meet in Kigali next week, to draw strategies through which they can tap into opportunities offered under the African Continental Free Trade Area (AfCFTA)
The two-day meeting, according to the CEO of East African Business Council (EABC) John Bosco Kalisa, will bring together traders from the East African Community, the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Cooperation (SADC).
"As a follow up to the recommendations and action plan from the Accra meeting, the East African Business Council will meet in Kigali along with SADC and COMESA to jointly position themselves in the efforts towards preparing the private sector to benefit from the AfCFTA" Kalisa said.
NSC Links Trade Imbalance In W/A To Composition Of Sub-Sahara African Trade (The Tide)
Worried by the slow flow of trade in West Africa, Nigerian Shippers Council (NSC) has said that the composition of West African Sub-Sahara African trade was responsible for trade imbalance in the sub-region.
Executive Secretary, Chief Executive Officer, NSC, Emmanuel Jime, stated this in Port Harcourt during a one-day sensitisation programme on the mandate of Shippers Council as ports economic regulator, with the Theme, “Port Economic Regulator NSC in Focus”.
NSC, he said, was mandated to creates an effective regulatory regime at Nigerian Ports for the control of tariff, rates, charges and other related economic service’s
Cape Town to Host the 8th Africa Fintech Summit (Top Africa News)
In November 2022, leading innovators, investors, and policymakers from around the world will gather in Cape Town, South Africa, for the 8th edition of the Africa Fintech Summit (AFTS).
With participants who represent over $4.5bn in private equity and venture capital funding, the AFTS is the premier global initiative dedicated to financial technology in Africa. The bi-annual summit occurs each April in Washington, D.C., and each November in a different African city. The AFTS Advisory Board
ETHICORE Political Lobbying & Moharram & Partners form largest pan African & Middle East partnership (BusinessGhana)
Award winning and leading pan African public policy, regulatory and government affairs firm, ETHICORE Political Lobbying has concluded a landmark partnership agreement with Egypt based Moharram & Partners (M&P).
ETHICORE and M&P have established the largest and first-of-its kind partnership in Africa and the Middle East. The firms are the biggest and leading indigenous public policy and government affairs agencies on the African continent.
Headquartered in South Africa with national offices in the economic centres of both Cape Town and Johannesburg, ETHICORE and its subsidiary – Africa Government Affairs Xchange (AfricaGX) has rising market coverage in 27 African and the Middle East countries.
Global economy
US: Africa can buy Russian grain but risks actions on oil (AP News)
African nations are free to buy grain from Russia but could face consequences if they trade in U.S.-sanctioned commodities such as Russian oil, the U.S. ambassador to the United Nations said Thursday.
“Countries can buy Russian agricultural products, including fertilizer and wheat,” Linda Thomas-Greenfield said. But she added that “if a country decides to engage with Russia, where there are sanctions, then they are breaking those sanctions.”
Thomas-Greenfield spoke in the Ugandan capital, Kampala, after a meeting with President Yoweri Museveni, a U.S. ally who has not criticized Russia’s invasion of Ukraine and has expressed sympathy with Moscow.
Ukraine's Zelensky: Africa gains nothing from Russian ties (The East African)
Ukrainian President Volodymyr Zelensky on Thursday warned African countries against supporting Russia’s aggression on his country, saying the continent had gained little from siding with Moscow.
Zelensky told a group of African journalists that it was in Africa’s interest to condemn the Russian invasion of Ukraine because it would amount to supporting “the truth.”
On Thursday, President Zelensky said Africa should not see the war as distant but look at Ukraine as a victim of an invasion violating international law, which African countries have signed.
The US-Led Drive to Isolate Russia and China Is Falling Short (Bloomberg)
When Group of Seven leaders gathered in the Bavarian Alps in June, they pledged to stand with Ukraine for the long haul. Their Group of 20 counterparts are proving less supportive.
Comprising nations that account for some 85% of global economic output, the G-20 is supposed to be more reflective of the world. Yet only half its number has joined the international sanctions imposed on fellow member Russia over its invasion of Ukraine.
Senior officials from the smaller group of wealthy nations have been traveling the world to make the case for a tougher economic net around Russia. They’ve been surprised by the lack of sign-on from G-20 states, even if those countries aren’t going out of their way to help Moscow circumvent the penalties.
Facing the Future: CBP Hosts First Trade Summit in Anaheim (Customs and Border Protection)
The focus was on the future at U.S. Customs and Border Protection’s first Trade Facilitation and Cargo Security Summit. Over 3,000 attendees, 1,000 on-site and more than 2,000 virtually, gathered in Anaheim, California, July 18-20, to learn more about CBP’s forward vision in a constantly changing trade environment.
“I know we have experienced some incredible challenges over the past few years. In fact, even saying, ‘incredible challenges,’ sounds like a gross understatement. Some of these challenges have been driven by the pandemic. Others are a result of global, political, economic, and environmental trends. But they’ve been difficult,” said CBP Commissioner Chris Magnus, who welcomed the hybrid audience from the Hilton Anaheim.
“CBP’s trade experts are leading the global fight against forced labor, a practice with more than 25 million victims worldwide. We know forced labor hurts vulnerable workers of all kinds, legitimate businesses and consumers. I am incredibly proud of the work CBP has done to address this issue,” said Magnus. “Over the past year, CBP has issued five new withhold release orders and two findings. So far in this fiscal year 2022, CBP has detained approximately 2,000 shipments worth an estimated $358 million.”
Chinese trade bans on Taiwan risk 'deeper predicament' as Nancy Pelosi visit leaves geopolitics 'on the mind' of businesses (Yahoo Finance)
China should think twice before unleashing more economic weapons on Taiwan to avoid blowback that could leave it in a "deeper predicament", experts and foreign business leaders say.
Beijing launched a barrage of trade suspensions on Taipei on Wednesday following the controversial visit of US House Speaker Nancy Pelosi, including export and import bans and sanctions on multiple organisations and companies for supporting "Taiwan independence".
Business Councils Call on Ottawa to Secure Trade Agreement With India (The Epoch Times)
Two business councils are urging the Canadian government to reach a trade agreement with India, as Western countries seek stronger political and economic ties with allies in the Asia-Pacific region.
The Business Council of Canada and the Canada India Business Council commissioned a report in which they recommend that the federal government forge stronger economic ties with India and develop a “comprehensive India strategy.”
“There is no path to achieving success in this massive and strategically important region without building strong and enduring economic ties with India—one of Canada’s last large, untapped trade opportunities,” said the report, published on Aug. 4.
Labour laws upgrade, simplification of taxes, stable tariffs key to India's trade: Report (The Week)
Upgrading labour laws, simplifying taxation and creating a stable tariff environment are imperatives to facilitate a larger trade between India and the world, a new report said.
'Building Resilient Global Value Chain Linkages in India: Findings from an Enterprise Survey' - a report jointly published by the Observer Research Foundation (ORF) and ORF America - examines how India can better integrate into global value chains (GVCs) in the post-COVID world.
"The risks posed by supply chain shocks have never been more visible, following the compounding crises of the US-China trade war, the COVID-19 pandemic, and the Russia-Ukraine conflict. GVCs, once viewed as the silver bullet for economic development, are coming under increasing scrutiny," the think tank said in a release.
ASEAN foreign ministers say RCEP key contributor to region's recovery strategy (Xinhua)
The Regional Comprehensive Economic Partnership (RCEP) free trade agreement would be a key contributor to the recovery strategy of the Association of Southeast Asian Nations (ASEAN), according to an ASEAN foreign ministers' joint communique released here on Friday.
In the joint communique issued after the 55th ASEAN foreign ministers' meeting (55th AMM) held in Phnom Penh, capital of Cambodia, the ministers welcomed the entry into force of the RCEP from Jan. 1, 2022.
"The RCEP would make significant contribution to our recovery strategy and continue to support an inclusive and open trade and investment architecture in the region," the communique said.
China to Focus on Trade to Deepen Africa Ties, EIU Says (Yahoo Finance Australia)
China will deepen its ties with Africa over the next decade by focusing on trade and is unlikely to be dislodged by US and European Union attempts to re-engage with the continent, the Economist Intelligence Unit said.
The Asian country is likely to keep investing in Africa’s natural resources and may look to the continent as a source of food, boosting its expenditure on agriculture, the EIU said in a report released Thursday.
China plans to surpass the EU as Africa’s biggest trade partner by 2030, and while western powers are trying to boost relations with the continent, they will struggle to catch up, the EIU said. Their relations with the continent are complicated by Europe’s colonial history with Africa and distrust of their intentions due to erratic engagement over the last few decades.
India and Mauritius held the 1st session of India-Mauritius High-Powered Joint Trade Committee on 01-03 August 2022 in New Delhi.
The High-Powered Joint Trade Committee had been constituted as per the mandate of the India-Mauritius Comprehensive Economic Cooperation and Partnership agreement (CECPA), to review the general functioning and implementation of the India-Mauritius CECPA which entered into force on 1st April, 2021. CECPA is the first trade Agreement signed by India with a country in Africa.
Both sides noted that the traditionally close, strong economic ties between the two countries touched a new high with the signing of the landmark CECPA. Appreciating the growth of the bilateral merchandise trade between India and Mauritius, which rose to USD 786.72 million in 2021-22 from USD 690.02 million in 2019-20, both sides agreed to enhance bilateral collaboration to further increase bilateral trade and realize the true potential of the bilateral relationship especially under the CECPA.
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Local news
Science, Innovation dept envisions a solid hydrogen economy by 2050 (Engineering News)
South Africa’s Department of Science and Innovation (DSI) views hydrogen as a key enabler of decarbonisation, particularly in the transport sector – heavy-duty trucking, shipping, aviation, and rail – and in major polluting industries such as steel, cement and chemicals manufacturing, as well as mining.
By 2050, government aims to have established an inclusive, competitive and sustainable green hydrogen economy. To this end, it has various policies that support the development of green hydrogen, including the Hydrogen Society Roadmap which was published in February.
SA, Botswana strengthen business relations (SAnews)
South Africa and Botswana share borders and it is therefore important for the two countries to work together, says Trade, Industry and Competition Minister Ebrahim Patel. “There are opportunities for both countries,” Patel said on Wednesday at a media briefing at the conclusion of the South Africa-Botswana Business Forum in Gaborone. He said however that both countries have high unemployment challenges. “We have to resolve these challenges, we need to create millions of job opportunities for our youth. We need to complement each other,” he said. Patel emphasised the need to start thinking about how to address the challenges facing both countries.
Traders face fines as e-customs clearance system law kicks in (Business Daily)
Traders risk up to Sh500,000 in fine or a year in jail if they fail to register online for clearance of all imports and exports as the State moves to plug loopholes manipulated to ship in or export products. This follows the creation of the National Electronic Single Window System, which is now the only entry point to register and clear all inbound and outbound cargo. The online clearance system is linked to the Kenya Revenue Authority and the Kenya Ports Authority, giving the State more tools to tame tax evasion.
“The system shall serve as a single entry point and platform for any person involved in trade and transport to lodge documents electronically, including import or export documents for processing and approval,” the Act reads in part. The law took effect on July 11 and revokes an Executive Order of 2010 that the government relied on to ensure that imports or exports are cleared electronically and ensure compliance with all taxes and duties.
KAM urges govt to address gaps in the implementation of AfCFTA (Capital FM)
The Kenya Association of Manufacturers (KAM) has urged the government to put in place measures that will enable the country to enjoy full benefits from Africa Continental Free Trade Area (AfCFTA) agreement. Speaking during the launch of KAM’s study findings on the implications of AfCFTA on Kenyan products, the association’s acting Chief Executive Officer Tobias Alando noted that even though the agreement offers the best opportunity for the country’s business goals, the lack of proper mechanisms to achieve this remains a major hindrance block. “Kenya’s export market in Africa is expected to increase with the full implementation of AfCFTA. However, if unaddressed, challenges such as dwindling country competitiveness, lack of product competitiveness, and supply chain constraints shall hinder local manufacturers from reaping the benefits that come with AfCFTA,” he stated.
Mid-year budget: Slash E-Levy rate to 0.75 or 0.5% – ISSER boss reiterates (GhanaWeb)
The Institute of Statistical, Social and Economic Research (ISSER) has called for aggressive domestic revenue mobilization through efficient tax and non-tax revenue generating measures to firm the country’s fiscal space. The Institute also called for a unified common platform for collecting property rates to boost domestic revenue.
Professor Peter Quartey, Director, ISSER, speaking at this year’s mid-year budget in Accra, commended the Government’s plan to spend within its means, but said achieving a fiscal deficit of 6.6 per cent of Gross Domestic Product (GDP) was ambitious and daunting.
The Government in the 2022 mid-year budget statement revised the country’s GDP growth rate from 5.8 per cent to 3.7 per cent in 2022.
Effort to export to other African countries: Govt outlines plans for local businesses (Business Ghana)
In a speech read on his behalf at the launch in Accra yesterday, he said the National AfCFTA Policy Framework and Action Plan was geared towards the harmonisation of relevant policies, programmes, laws, and regulations to boost the productive capacities of the private sector, particularly the small and medium scale enterprises to harness the full benefits of AfCFTA.
“A successful implementation of the Action Plan will boost the capacities of the Ghanaian private sector to take advantage of market access opportunities in Africa to promote ‘Made in Ghana’ goods and services,” he stated.
“The effective operationalisation of the AfCFTA Agreement in Ghana would significantly boost Ghana’s balance of trade, stimulate investment and innovation, diversify exports, improve food security, foster structural transformation, enhance economic growth, and above all, provide jobs for the youth,” the President stated.
We can sustain $500m oil palm investment in Edo, says Obaseki (The Guardian Nigeria)
Edo State government has built a formidable structure to sustain the gains of the $500 million investment in the state’s oil palm sector. Governor Godwin Obaseki, in a chat with Africa Report, said the investment would drive Nigeria’s diversification targets, as the plantations developed through the Edo State Oil Palm Programme (ESOPP) would provide feedstock for manufacturing companies in the country. His words: “We decided to be strategic in the development of oil palm, rubber and cassava value chains in Edo. We developed plans and went to the Federal Government for support. This is why we got financing from the Central Bank of Nigeria (CBN).
“There has to be a market. Agriculture is a business. We located companies and partnered them. We looked at what they needed and asked them to come to Edo to invest in the raw materials they needed to run their factories and plants. “One of the criteria we considered is that they must have a market for their product and require a steady source of raw materials. We asked them to walk back through the production value chain and come and site in Edo as the source of their raw materials. With this arrangement, the investment is sustainable,” he explained.
South Sudan is a very fragile post-conflict state and one of the most vulnerable countries in the world to climate-driven disasters. The pandemic reversed the economic recovery that followed the 2018 peace agreement. The oil price shock from the pandemic resulted in a massive loss of revenue, causing the government to run up expenditure arrears and resume monetary financing. This led to sharp exchange rate depreciation and runaway inflation. The policies implemented under a Staff Monitored Program (SMP) that was approved in March 2021 and supported by two disbursements under the RCF (in November 2020 and March 2021) have helped restore macroeconomic stability and eliminate a long-standing system of multiple exchange rates. Higher oil prices have dampened the effects of floods on lower oil production and sustained international reserves in the face of a rising import bill. The sharp rise in global food prices risks is exacerbating the dire humanitarian situation in South Sudan, where 70 percent of the population suffers from acute food insecurity, at a time when aid budgets are being cut.
African trade and integration news
Competition from new East Africa ports boon for importers (The East African)
Competition between old and upcoming ports on the eastern African coast could signal better alternatives for importers who have struggled with inefficiency. A new report by logistics consultancy firm GBS Africa says that while veterans at the job such as the Port of Mombasa in Kenya and Dar es Salaam in Tanzania could face rough challenges from newcomers, it could be good news for importers as they may be spoiled for choices.
The report notes that the port of Dar es Salaam offers faster and more cost-effective trade and transport solutions than Mombasa, citing that the port of Dar es Salaam is benefitting from ongoing expansion and investments.
The competition among ports has already started yielding fruits since both Kenya and Tanzania have tapped foreign investors to expand related facilities such as the northern corridor expansion as well as the refurbishment of berths in Mombasa.
“This emerging diversity creates a highly lucrative trade corridor to inland markets and population centres while attracting fresh investments into associated sectors,” the report indicated, citing the expansion of other ports, including in Somalia.
EU-SACU Poultry Safeguard Measure Arbitration (SACU)
In a historic milestone, in its final Report delivered on the 3rd August 2022, the Arbitration Panel’s Ruling on the dispute between the European Union (EU) and the Southern African Customs Union (SACU) Member States, secures a landmark victory for the SACU poultry industry. The dispute was initiated by the EU under the Economic Partnership Agreement (EPA) between the EU and the SADC EPA States (EU-SADC EPA) and relates to a bilateral safeguard measure imposed by SACU on frozen bone-in chicken cuts imports from the EU, in 2018. The EU had challenged the legal basis and compliance of the measure with the EU-SADC EPA on a number of grounds.
Dismissing the majority of the EU’s claims, in particular those pertaining to the geographical scope of the measure, the requirement for an investigation, the adequacy of the information provided to the EU as well as the request for a refund of the duties already paid, the Arbitration Panel confirmed that the EU-SADC EPA provides for a safeguard regime that departs from that under WTO rules, emphasising the developmental character of the EU-SADC-EPA.
Vodacom decries Africa’s restrictive digital economy policies (ITWeb)
Africa’s restrictive policies and practices continue to hinder the growth of the digital economy, along with the related socio-economic benefits across the continent. This is one of the biggest takeaways from a white paper published yesterday by Vodacom Group in partnership with AUDA-NEPAD, titled “Enabling policy frameworks for digital and data services for expanded economic growth and development – a focus on the SADC region”. The paper highlights that one of the keys to unlocking Africa’s digital economic growth, and resulting digital financial inclusion, is to create an enabling regulatory environment that supports the secure flow of data between jurisdictions.
“An enabling regulatory environment for digital, cloud and data services that ensures appropriate free flow of data between jurisdictions should be a priority for any country which has its development as a viable digital economy as a key objective,” says Stephen Chege, chief officer for external affairs at Vodacom Group. “The importance of free data flows within the context of the fourth industrial revolution and its unique economic value cannot be overemphasised. The enablement of secure and easily facilitated cross-border data flows is a strong predictor for African Union (AU) member states to successfully compete in the global economy and thrive in a post-COVID-19 world.”
ECOWAS Commission holds a retreat for its Interdepartmental Trade Facilitation Committee (ECOWAS)
The Directorate of Trade of the Commission of the Economic Community of West African States (ECOWAS) organised a Retreat for the ECOWAS Interdepartmental Trade Facilitation Committee (IDTFC) in Lagos, Nigeria from August 1 – 3, 2022. The 3-day retreat provided a platform for Directorates and Agencies of the ECOWAS Commission to review guiding documents on regional trade currently in drafting stage, such as the Regional Trade & Transport Facilitation Strategy (RTTFS), framework for elimination of Non-Tariff Barriers (NTBs), the Common Trade Policy (CTP), and the Trade and Investment Development Strategy.
Mr. SOFOLA highlighted the recent efforts facilitated by the Commission such as the adoption of the Supplementary Act on ECOWAS Community Transit and the establishment the ECOWAS Regional Trade Facilitation Committee (RTFC). The RTFC provides advisory recommendations to the ECOWAS Commission regarding the implementation of all instruments associated with the simplification of export, import, and transit inside and outside the region. Before declaring the meeting open, he assured members of the IDTFC that their comments and inputs will be incorporated in the draft documents prior to presentation to the Member States for consideration and adoption.
Funding secured for new dry bulk port set to boost West African trade (Global Trade Review)
A trio of commercial banks has agreed to lend €90mn towards a new dry bulk port in Côte d’Ivoire, as the West African country works to modernise its ageing trade infrastructure and grow export volumes. Rand Merchant Bank (RMB) and Standard Bank are acting as mandated lead arrangers (MLA) on the 10-year senior debt financing, while local media reports indicate Stanbic is the other lender to be involved in the deal. The funding supports the development of a multi-purpose bulk terminal in San Pedro, which is the second largest port in Côte d’Ivoire, behind Abidjan.
New EU rules risk Africa farm exports (Business Daily)
As developing countries look into ways to address food security, the agricultural sector plays a critical role in supplying food and export earnings. But this might be further affected if the leaders in these countries do not take the newly established European Union (EU) regulations seriously. The measures the European Commission unveiled seek to increase the contribution of EU trade agreements in safeguarding the climate, environment, and labour rights worldwide. It is part of the EU’s efforts to make trade greener, fairer and more sustainable. The European Green Deal is focusing on the EU climate strategy to reach net zero emissions by 2050. It is a roadmap for a socioecological transition to a low-carbon future and it provides building blocks for a green economic strategy in Europe. But what does this mean for the developing world? The changes will also have far-reaching implications in export countries like Kenya. Currently, Africa’s exports of agricultural produce to the EU and agri-food make up 16 percent of EU-Africa trade and are worth €5 billion ($19.6 billion).
In its latest economic data, the Kenya National Bureau of Statistics reported that horticulture profits increased from Sh150.2 billion in 2020 to Sh158.1 billion ($1.39 billion) in 2021. However, the upward trajectory is now under threat unless Kenya creates widespread awareness and builds the capacity to implement the rules.
African officials lay out goals ahead of the U.N. climate summit (PBS News Hour)
African officials outlined their priorities for the upcoming U.N. climate summit, including a push to make heavily polluting rich nations compensate poor countries for the environmental damage done to them. The continent will also focus on how countries can adapt to global warming and how the continent can best halt further climate-related disasters. Africa has seen debilitating droughts in the east and Horn of Africa and deadly cyclones in the south.
Other key areas for discussion include moving from high-carbon energy sources like oil and gas to renewables, and “carbon credit” schemes, where foreign governments and companies pay for tree planting in exchange for producing greenhouse gases.
Energy Minister says regional integration ideal for sustainable energy for all (Malawi24)
Malawi’s Minister of Energy Ibrahim Matola has stressed the need to have regional integration in the energy sector so as to achieve sustainable energy for all as articulated in the UN’s Sustainable Development Goals (SDGs). Minister Matola was speaking this on Wednesday 3rd August, 2022 at the 4th Tanzania Energy Congress which is currently underway in Dar-Es-Salam, United Republic of Tanzania. The minister told delegates during a session titled; “Improving Africa’s Economy Through Energy Sector Market Development Expansion,” that African countries need to work together to easily achieve SDGs 7 that advocates for sustainable energy for all.
“As a starting point, we need to review archaic laws and policies in order to improve Africa’s Economy through energy sector market development expansion. Currently, we have regional projects that Malawi has and plans to develop with its neighbors,” he said.
China to Deepen Africa Ties Over Next Decade With Focus on Trade (Bloomberg)
China will deepen its ties with Africa over the next decade by focusing on trade and is unlikely to be dislodged by US and European Union attempts to re-engage with the continent, the Economist Intelligence Unit said. The Asian country is likely to keep investing in Africa’s natural resources and may look to the continent as a source of food, boosting its expenditure on agriculture, the EIU said in a report released Thursday. Asia may see Africa’s youthful population as a source of labor for its manufacturing companies and as a market for its consumer goods, the research organization said.
China, G7 and Africa’s infrastructure challenge (The Nation Newspaper)
In the next few months, Africa’s most populous country and also her largest economy, Nigeria will get her first deepest sea port, the Lekki Deep Seaport. When fully operational, as expected before the end of the year, the port would generate estimated 170,000 jobs and rake in revenues of about $201 billion to central and state governments through royalties, taxes and duties. The 17 meter draught sea port constructed by one of the world biggest maritime engineering firm, China Harbour Engineering Corporation (CHEC) would reposition Nigeria as key maritime hub of the west and central African regions.
The Lekki Deep Seaport is a major artery in the network of infrastructure connectivity that is at the heart of China’s Belt and Road Initiative, (BRI), a framework of International Cooperation that also includes policy coordination, unimpeded trade, financial integration and deepening people to people contacts.
Accelerating Trade and Investment between India & Africa (APO)
A developing entrepreneurial relationship has surfaced in the past several years as a result of the substantial historical, commercial, and cultural ties between Africa and India. This has opened up a huge opportunity to capitalize on the innovative capacity of entrepreneurs in both regions to collaborate and solve urgent problems that affect both regions, thereby boosting trade and investment. This was the theme of the 2nd India - Africa Entrepreneurship & Investment Summit held at the Sarova Panafric Hotel in Nairobi, Kenya.
Due to its huge economic potential, the fintech sector has seen significant interest from notable investors and players in both Africa and India over the past few years. This is especially true in Africa, where the issue of financial inclusion still persists and much innovation and technology is required to guarantee that more Africans have access to financial services that can drive economic growth.
Global economy news
One of the world’s biggest shipping firms says there’s no telling when the bottlenecks disrupting global trade will ease up (Business Insider Africa)
One of the world’s biggest shipping and logistics companies, AP Moller-Maersk, said it doesn’t know when the supply chain bottlenecks that are disrupting global freight trade will end. “On the supply side, supplier delivery times remain lengthy, and it is still uncertain when capacity constraints including landside bottlenecks in trucking and warehousing will abate, the report said. The COVID pandemic and the war in Ukraine, among other global events in recent years, have stretched supply chains, leading to shortages of some goods, log-jams at ports, and surging prices for many products. Demand for goods increased during the COVID-19 pandemic, at a time when ports and factories were shuttered or limited, left freight firms dealing with a backlog of goods. More recently the war in Ukraine and growing consumer concerns around inflation have both weakened demand for shipping containers, Maersk said.
China to Lagos container shipping cost grows 203.22% in 2021 – UNCTAD (Businessday)
The cost of shipping a container from Shanghai Port in China to Lagos Port reached a record high of $8,102 per twenty equivalent units (TEU) of container in July 2021 from $2,672 per TEU in the same period in 2020, according to the United Nations Conference on Trade and Development (UNCTAD). This represents about 203.22 percent increase in freight rate, which according to UNCTAD also affected other trade routes and was due to the disruption in the global supply chain caused by the outbreak of the Covid-19 pandemic. The disruption, UNCTAD said, also resulted in global container shortages, port congestion, and delays at ports. UNCTAD in its latest report titled the ‘Review of Maritime Transport 2021,’ said the fluctuations in freight rates experienced in 2021, reflect changes in lockdown policies and varying speeds of recovery, as well as the impact of shortages of both containers and ships as well as congestion in key ports.
“These surges are likely to be amplified in most of the low- and middle-income countries of the Arab region, especially those suffering from conflicts or economic or financial crises which have had major impacts on patterns of production and consumption – and on maritime freight rates,” UNCTAD stated in the report.
Global impact of war in Ukraine: Energy crisis (UNCTAD)
Disruptions to the global energy market are putting Governments worldwide under enormous pressure. Rising energy prices are accelerating the cost-of-living crisis and sustaining the vicious cycle of constrained household budgets; increasing food and energy poverty; and increasing social unrest. In this context, safeguarding countries’ commitments to the Paris Agreement and the 2030 Agenda for Sustainable Development will require significant efforts from all involved stakeholders. Policies that address the short-term emergency while ensuring countries’ climate-related and other sustainable development commitments must be pursued. Such policies are available to both developed and developing countries, although the mix varies depending on geography, income level and commodity status.
Climate Explainer: CCDRs (World Bank)
Climate change is profoundly connected to development and human wellbeing. Unchecked, climate impacts could push 132 million people into poverty over the next 10 years. Climate change also interacts with other social, economic, and environmental pressures – as is now evident from repeated and more frequent extreme natural events and disasters - compounding risks that can increase vulnerability, exacerbate grievances, and deepen pre-existing fragility. And despite having contributed the least to global greenhouse (GHG) emissions, developing countries are especially vulnerable to the adverse impacts of climate change.
But not only does climate change pose a serious threat to sustainable development, now and in the future, the converse also applies: countries can achieve good development outcomes, including by reducing poverty and boosting sustainable growth, while taking action on climate. Achieving this, though, requires a clear understanding of which interventions will have the highest impact, what they will cost, what are the tough policy choices that may be needed; and that’s what these CCDRs will aim to provide.
BRICS-led bank plans US dollar bond to downplay Russia ties (Devex)
The New Development Bank is in “active” talks with investors about issuing a new U.S. dollar bond before the end of the year — a move aimed at shoring up its image in financial markets following a Fitch Ratings downgrade of the institution last month over its links to Russia, Devex has learned.
The bank is preparing an investor roadshow for later this year in which it will make clear that the new bond will be used to fund projects in all its member states except Russia, NDB Chief Financial Officer Leslie Maasdorp told Devex. NDB’s founding members include Brazil, Russia, India, China, and South Africa, known collectively as the BRICS economies.
The Shanghai-based lender put all its operations in Russia on hold in March, just after the invasion of Ukraine and the imposition of a slew of Western sanctions on Moscow. For the upcoming bond, this means the financing it raises will not be used for Russian investments. “The bank is presently in active dialogue with our investor base to explore the feasibility of a benchmark-size U.S. dollar bond offering in the final quarter of 2022,” Maasdorp said.
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South Africa’s trade surplus increases mainly due to an increase of precious metals and stones export (Cape Business News)
South Africa’s trade surplus narrowed to R24.2bn in June 2022, compared to the revised surplus of R30.9bn for the previous month. The surplus was slightly lower than market expectations of R25.5bn and was the result of a small increase in exports of 1.6% month-on-month and a higher increase of 6.3% in imports compared with May 2022. The small and disappointing growth in exports is partially explained by the widely reported problems experienced in and by the mining industry. This is evident from the fact that the exports of precious metals and stones increased by R2.5bn (+6%), and in contrast, the exports of mineral products declined by R3.2bn (-6%). Whilst both precious metals (PGMs, gold, diamonds etc.) and mineral products (different types of ores, coal etc.) are experiencing high global prices, only the precious metals industry is benefitting fully from the price bonanza.
The conundrum lies in the fact that the former is exported by air to its final export destinations, whilst the latter is dependent on transport by rail to the various South African ports. The inability of both rail transport and ports to provide an effective and efficient service to the industry is impacting the industry and the country. However, the mining industry also slightly contributed to the declining production volumes experienced by certain commodities amidst a commodity boom.
Poultry association says capacity built under masterplan may lie idle (Engineering News)
The South African Poultry Association (Sapa) says it is disappointed in the suspension of anti-dumping duties on certain imported chicken products, adding that the South African industry has invested R1.5-billion in expanding local processing capacity in support of the Poultry Sector Masterplan and created more than 1 500 new jobs. Emerging farmers have spent more than R600-million to build new farms to support the increase in capacity at a time when input costs are against the industry on the back of global macroeconomic issues, says Sapa Broiler Organisation GM Izaak Breitenbach.
Rail constraints costing South African miners billions of rands in lost exports (Engineering News)
Despite bulk mineral exports being State-owned Transnet’s single biggest client base, South Africa is unable to access the full benefits of minerals exports, Minerals Council South Africa CEO Roger Baxter told delegates attending the first day of the South African Heavy Haul Association (SAHHA) 2022 conference on August 2. He said it had been a challenging last couple of years, with a deterioration in Transnet’s rail performance.
EU increases agri-food exports to South Africa (Agriland.ie)
The latest EU agri-food trade figures released recently show that the total value of EU agri-food trade reached €31.4 billion in April 2022, a 14% increase on to April 2021. Exports of agricultural products from the EU decreased by 5.4%, mainly due to lower exports to Russia (-26%) and China (-11%). Imports of agricultural products from the EU reached a value of €13.5 billion (1.2% less than in March), giving an agri-food trade balance of €4.4 billion for April 2022. This is a decrease of 16% month-over-month. Overall, trade flows from January to April 2022 are significantly higher than the corresponding period last year, with exports increasing by 10% and imports increasing by 28% due to high world prices.
Cheap chicken gets dumping customs pass (Namibian)
NEITHER Namibia nor South Africa will impose anti-dumping tariffs on chicken imports from Brazil, Denmark, Ireland, Poland, and Spain. This is because food prices are too high, the International Trade Administration Commission (Itac) announced yesterday. After an investigation, the commission determined those countries were dumping chicken in the Southern African Customs Union (SADC) area at below the cost of production, “causing material injury” to local producers. Under global trade rules, this allows South Africa to impose extra import duties to level out the price and so protect local producers from predatory behaviour. Itac had recommended just such tariffs to South African trade and industry minister Ebrahim Patel, who makes the final decision on such matters.
“The minister approved the commission’s recommendation. However, in making his decision, the minister considered the current rapid rise in food prices in the Southern African Customs Union market and globally, and the significant impact this has, especially on the poor, as well as the impact the imposition of the anti-dumping duties may have on the price of chicken as one of the more affordable protein sources.”
Agri SA assures wool exports are safe, while ban on exports to China persists (Engineering News)
Industry body Agri SA and the National Wool Growers’ Association of South Africa (NWGA) have noted concern about the “unjustifiable” ban on wool exports to China owing to Foot-and-Mouth Disease outbreaks in parts of South Africa. The first wool auction for the 2022/23 season is scheduled for August 17; however, with up to 80% of the clip normally destined for China, the ban will have a “devastating” effect on the local wool industry, the industry bodies point out. The value of the South African wool clip is about R5-billion a year. Since the ban was announced in April this year, the South African wool industry has lost an estimated R734-million in wool exports to China.
Impoverished Zimbabweans turn to scrap metal trade as inflation bites (Reuters)
Shepherd Chowe pushes a cart filled with tins, iron rods and other metallic objects down a dusty pathway in Hopley, a poor settlement about 15 km west of Zimbabwe’s capital, Harare. “I start moving around the township at 8 a.m. ... asking people for scrap metal or anything metallic they are not using anymore,” Chowe said, adding that on a good day he takes home $40.
Chowe is among Zimbabweans selling scrap metal for survival as the cost of living soars, piling pressure on a population already facing food shortages and high unemployment, stirring memories of economic chaos years ago under veteran leader Robert Mugabe’s near four-decade rule.
Zimbabwe’s steel industry has been struggling since the collapsed of the Zimbabwe Iron and Steel Company (Ziscosteel) more than a decade ago. However, in recent years, small steel producers working with scrap yard dealers are picking up the pieces.
High-Level Debt Resolution Forum on the cards (Chronicle)
Zimbabwe is planning to host a High-Level Debt Resolution Forum with development partners and other stakeholders aimed at building consensus on the process and procedures of resolving the country’s external debt and arrears clearance.
The country’s external debt continues to burden the economy by restricting access to low cost, long-term financing required to support the desired medium to long term growth trajectory. To address the challenge, Finance and Economic Development Minister, Professor Mthuli Ncube said the Government has developed the Arrears Clearance, Debt Relief and Restructuring (ACDRR) Strategy aimed at restoring debt sustainability. According to the strategy document, the country is ready and geared for private sector-led inclusive economic growth.
NRZ takes up import substitution challenge (The Chronicle)
The National Railways of Zimbabwe (NRZ) has set focus on substituting imports through domesticating critical engineering services under its Integrated Rail Technologies (Inter Rail Tech) arm.
The firm’s engineering services unit provides internal services to the parent company and also manufactures mining equipment spares for small-gscale and established mining businesses. NRZ participated at the recent Mining, Engineering and Transport (Mine Entra) Exhibition in Bulawayo where it showcased its diversified services. Company spokesperson, Mr Martin Banda, said the integrated rail technologies unit consists of different engineering departments capable of providing solutions to challenges faced by local industries, including miners.
“It has been noted that there is a need for industries and miners to work together, which will result in cutting down on looking for talent and engineering components out of the country,” said Mr Banda.
Zimbabwe’s industry is on recovery mode, riding on the back of efforts by the Government to create a stable operating environment through initiatives such as the foreign currency auction system.
Secure Mombasa port’s strategic trade position (Business Daily)
Kenya must protect its transport corridor by investing in the Mombasa port amid emerging competition from other facilities in the region. Mombasa currently handles 3,000 containers daily and many landlocked countries in the region rely on it. A report by advisory firm GBS Africa shows that plans to develop Lamu and Tanzania’s Bagamoyo into transshipment ports could in the long run give them an advantage over Mombasa in terms of the size and number of vessels handled and the time taken to move containers. A shift to other ports will remove Mombasa’s historic shine as a strategic trading post and the main gateway to international markets
Kisumu Shipyard will expand regional trade — Uhuru (The Star, Kenya)
Trade within the East Africa Community is expected to expand greatly with commissioning of the Kisumu Shipyard Limited and floatation of the MV Uhuru II. President Uhuru Kenyatta on Tuesday commissioned the shipyard where the Kenya Defence Forces built its first ship, the MV Uhuru II cargo carrier. He said the project will be crucial in growing the country’s economy. The EAC member states are Kenya, Uganda, Rwanda, Tanzania, Burundi, South Sudan and DR Congo. “The port will create jobs and business opportunities for Kenyans and increase their income if put into good use,” Uhuru said.
Tanzanian, Zambian leaders agree to revive TAZARA railway (CGTN Africa)
Tanzania and Zambia on Tuesday agreed to mobilize resources to revive the TAZARA railway to make it modern and vibrant. “Tanzania and Zambia are long-time friends. We have agreed to further promote these relations which now should be translated into economic and trade relations to improve the lives of our people,” said President Hassan.
For his part, Zambian President Hichilema said: “We need to work together because our relationship and co-existence is historical, we were together in the struggle for independence, since then we have worked together and our people have been one.”
Uganda mulls revised borrowing model to manage debt (The East African)
Uganda is considering changes to future borrowing in the light of rising debt, with Ministry of Finance officials saying such a move is meant to manage debt and reduce the burden of repayments. Maris Wanyera, director for cash and debt policy at the Ministry of Finance, says one way will be to re-examine ratios of interest payments to tax revenues, as well as interest payments against export earnings, in addition to the debt-to-economic growth balances. “Future borrowing will be biased towards concessional loans and the domestic debt market for purposes of budget support, but we shall not acquire commercial loans for project implementation,” Ms Wanyera told The East African. Uganda’s debt-to-gross domestic product (GDP) ratio, usually measured as the level of indebtedness based on national wealth, rose to 54 percent in June from 49.1 percent by end of May based on cumulative debt statistics captured between July 2021 and June 2022.
It means Uganda owes Ush73.5 trillion ($19.2 billion), with external debt valued in excess of Ush40 trillion ($10.5 billion), recent government data shows.
Ghana launches National AfCFTA Policy Framework and Action Plan (Ghana Business News)
Ghana government has outlined interventions geared towards the harmonisation of existing laws, programmes, policies, and regulations to boost Ghana’s trade with Africa under the African Continental Free Trade Agreement (AfCFTA). The interventions were highlighted in a National AfCFTA Policy Framework and Action Plan that provided policy prescription and strategic objectives with focus on trade facilitation, trade policy, infrastructure, enhancing productive capacity, trade information, market integration and finance. The document was put together by the AfCFTA Inter-Ministerial Committee, National AfCFTA Steering Committee and seven Technical Working Groups that comprised of representatives from the private sector, Senior Government Officials, and other technical experts.
At the launch on Tuesday, Mr Kojo Oppong Nkrumah, the Minister of Information, who launched the document on behalf of President Nana Addo Dankwa Akufo-Addo, said the implementation of the framework was crucial to ensuring Ghanaian businesses exported significantly into the African continent.
FULL TEXT: Trade Minister’s speech at launch of National AfCFTA policy framework (GhanaWeb)
Trade Facilitation: Stakeholders fault Customs Bill (New Telegraph)
Stakeholders in the port sector have said that the 283 clauses in the Nigeria Customs Service (NCS)’s 2022 Draft Bill with grey areas could hamper trade facilitation, import and export activities and the nation’s manufacturing potentials, if not urgently reviewed
the Nigeria Customs Service Bill 2022, surfaced at the National Assembly with 283 clauses of grey areas. Top among the drawback of the new bill was the scheme to seek the creation of ministry of Customs with a further constitutional clause that seeks the appointment of a retired Customs officer as minister.
Redefining business models necessary for SMEs’ growth (Businessday)
With poor power supply in Nigeria, small and medium enterprises (SMEs) incur additional operational costs when they operate generators to power their businesses. Coronavirus practically changed the business models of many firms. Just about the time the world thought the crisis was gradually coming to an end, the prices of crude oil skyrocketed, thus increasing the pains for businesses, which come in the form of higher costs of raw materials. It is thus surprising that some Nigerian businesses still stick to the old ways of doing things. The old model produced poor customer convenience and a low customer satisfaction. That is why the order of the day now is innovation around technology adoption in businesses to improve performance and retain customers.
Nigerian businesses need to raise their game due to the increasing competitiveness on the African markets as the African Continental Free Trade Area (AfCFTA) gains more traction and because of the urgency to create more jobs for the increasing number of unemployed Nigerians who are getting more frustrated daily.
Nigeria commits to energy self-sufficiency by 2026 – NAPIMS chief (WorldStage)
The Federal Government of Nigeria has reiterated its commitment to achieving self-sufficiency and net exporter of energy resources by 2026. Mr Bala Wunti, Group General Manager, National Petroleum Investment Services (NAPIMS) said at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) on Tuesday in Lagos that though the government had pledged to achieve net zero carbon emission by 2060, its priority remains reducing energy poverty in the country with its abundant hydrocarbon resources.
Speaking during a panel session on “Sustainable Energy Transition Strategy: The Role of Legislative Frameworks and Investment Programmes”, he said the government’s target was to attain zero dependence on imported energy, both primary and secondary, as well as becoming a net exporter of secondary energy resources by 2026.
Minister tasks industries, pharmacists on vaccine production (The Guardian, Nigeria)
The Minister of State, Federal Ministry of Industry, Trade and Investment, Amb. Maryam Katagum, has urged Nigerian pharmaceutical companies to utilise the licensing provision of the TRIPS Waivers Agreement for COVID-19 to establish vaccine production plants for the country. Katagum gave the advice at the 9th African Day of Standardisation 2022 Symposium, organised by the Standard Organisation of Nigeria (SON) in collaboration with the African Organisations for Standardization (ARSO) in Lagos. With the theme: “Promoting the African Pharmaceutical and Medical Devices Industries Through Standardisation”, the Minister explained that following WHO’s declaration of the coronavirus as a global public health emergency and inability of some countries to get the COVID-19 vaccine, some countries have issued compulsory licences to enable them to start manufacturing of vaccines within the next five years.
Under the Revitalized Agreement on the Resolution of Conflict in South Sudan (R-ARCSS), the peace process to end South Sudan’s civil war has achieved some notable milestones since 2018. However, progress has been slower than anticipated, and the global pandemic and devastating floods have further impeded the recovery from the sharp contraction of the economy during the civil war years. South Sudan remains highly dependent on oil, which accounts for nearly all of exports and 90 percent of government revenue. This leaves the country exceptionally exposed to oil price fluctuations. Moreover, the population is critically reliant on international humanitarian aid. Off-budget support from international donors provides for most of South Sudan’s social spending but is set to decline amid shrinking aid budgets and the rising cost of providing such aid.
African trade and development news
Africa must adopt single trade currency and stop using U.S dollars – Afrexim Bank COO (MyJoyOnline.com)
The West African Chief Operating Officer (COO) of the Afrexim Bank, Eric Intong has underscored the need for Africa countries to introduce a common local currency on the continent as against the use of the dollar. This, he argues will help check exchange rate depreciation on the continent. Speaking at the University of Professional Studies, Accra (UPSA) Law School, Africa Trade Round Table 5, Mr. Intong warned that the implementation of the African Continental Free Trade Agreement (AfCFTA) will face serious challenges if a common currency is not introduced to facilitate trade. He stressed that the inability of African countries to develop a common currency to trade with adds more cost to moving goods on the continent”
“If we stop paying African trade in dollars that is going to reduce the pressure on our currencies. We have made that estimate and it is at $5 billion annually. This will even be more once we start operating and the data from the Pan-African Payment and Settlement System (PAPSS)”, he said.
He disclosed that trade assessments undertaken in the West African region show that pressure on local currencies in the sub-region could drop if common currency is used for trading even among West African nations
West African Bakers Aim to Reduce Dependence on Imported Grains (VOA)
Commercial bakers from eight West Africa countries are doing what they can to reduce their dependence on foreign wheat and strengthen their nations’ food security by forming a trade association. For VOA Allison Fernandes reports from Dakar, Senegal.
Zim to participate at SADC annual industrialization week (Chronicle)
ZIMBABWE is expected to participate in the sixth Southern Africa Development Community (SADC) annual industrialisation week, a platform that brings together multiple faceted players to explore ways on how the region can contribute to poverty reduction through industrialisation and structural transformation of economies. The Democratic Republic of Congo is hosting the event which kicks off today and runs until Saturday under the theme “Promoting industrialisation through agro-processing, mineral beneficiation, and regional value chains for inclusive and resilient economic growth”. In a statement, the SADC secretariat said the annual event provides a platform for member states, the private sector, international cooperating partners, multinational corporations, regional and global policy makers, research institutions and academia, small and medium enterprises, development finance institutions and civil society to interact and share experiences on how best the region can contribute to poverty reduction through industrialisation and structural transformation of our economies.
The SADC Council of Ministers endorsed the convening of the annual SIW to intensify engagement with various partners, including the private sector to accelerate the implementation of the SADC Industrialisation Strategy and Roadmap 2015-2063.
EABC launches online SMEs finance access platform (New Vision)
The East African Business Council (EABC) has launched the EAC Small and Medium Enterprises (SMEs) online platform to ease access to cheap and affordable finances from the available capital in the region. According to John Bosco Kalisa, the EABC Chief Executive Officer, the level of regional intra-trade is low and there is a need to negotiate better. Kalisa says that the region is blessed with the unveiling of Equity Bank’s $6b SME fund and $1b from Afriexim Bank and the joining of the Democratic Republic of Congo (DRC) into the East African Community. “Our role as EABC will be to coordinate SMEs focal points across all the 6 partner states in the region hoping to double opportunities created by the African Continental Free Trade Area (AfCFTA) to benefit from over 130 million people in the region,” he explained during the launch of the EABC portal at Hotel Africana last week. However, Kalisa acknowledges that there are numerous challenges facing SMEs in the region despite the fact that 90% of the SMEs play a vital role in the livelihoods of the people.
The African Union Releases the Continent’s First Collective Climate Response Framework (tralac)
In February 2022, the African Union endorsed the continent’s first collective climate response framework. The AU’s Climate Change and Resilient Development Strategy and Action Plan (2022-2032) released at the end of June, comes at a time of growing evidence Africa is one of the most vulnerable regions to the impacts of climate change. This is due to high exposure to climate hazards, reliance on climate-sensitive sectors (such as agriculture) and low adaptive capacity.
A booming tech sector can unleash pan-African trade (Chatham House)
The Africa Continental Free Trade Area (AfCFTA) not only lays the groundwork for a single market across the continent, it can act as a driving force to unleash the full potential of the technology revolution that is under way across the African continent. To help achieve this, the AfCFTA must go beyond simply lowering barriers to the movement of goods and services, to what the World Bank calls an ‘FDI [foreign direct investment] deep scenario’. This requires harmonizing policies on investment, competition, intellectual property rights and e-commerce to encourage FDI at a greater scale.
There is no doubt the African tech industry is growing. In 2021, 681 African technology companies raised $5.2 billion in equity venture funding, up from $2 billion in 2019, according to Partech Partners’ annual Africa Tech Venture Capital report. It is understandable why the industry has attracted global venture capital. While tech businesses are often initially focused on meeting needs in their home markets, most have a strong desire to tap into the pan-African market, with its 1.3 billion consumers across 54 countries and a combined GDP of $3.4 trillion. This in turn should attract global venture capital to invest in Africa.
The AfCFTA has created a framework for technology-led companies to scale across the continent in a way that will impact digital infrastructure, logistics, energy and much else. For example, Africa’s hyperscale data centre capacity would benefit from the ability to locate centres in the lowest cost jurisdiction with the best energy availability and to use that to power cloud storage across the continent.
Similarly, logistics and other sectors would be transformed if the information on goods in transit, such as digital customs documentation, could move easily across borders while being tracked across all 54 countries. Financial services would also benefit from the ability to pay across borders in a low-cost, frictionless way.
African airlines caught in Ukraine turbulence (The East African)
The war in Ukraine is eating into earnings by airlines that have had to endure rising costs of jet fuel. And since Russia invaded Ukraine in February, cargo air freight and air tickets charges have increased to match the rise in jet fuel prices, engaging a reverse gear to an industry already struggling with post-Covid-19 recovery. According to the African Airlines Association, airlines on the continent are likely to post losses of up to $4.1 billion this year on the back of expensive jet fuel. This is equivalent to 23.4 percent of 2019 revenues. In a fight-back, the airlines have joined forces to negotiate better prices and a steady flow of jet fuel in a bid to help stave off a potential crisis caused by supply issues and soaring costs.
African Airlines Association Secretary-General Abderahmane Berthe’ said last week that a committee, which includes major carriers such as South African Airways and Kenya Airways, is set to secure deliveries for 12 months starting this month.
The youth will drive Africa’s digital economy; hence the need to invest in their skills development to accelerate innovations and growth on the continent, African Development Bank Director General for East Africa Nnenna Nwabufo said. Speaking at the 9th World Financial Innovation Series in Nairobi, Kenya, on 19 July, she noted that the youth are ambitious, enterprising, and eager for change. “Africa’s young people are the most avid adopters of ICTs and digital solutions.” Recent statistics show that 60% of Africa’s population is below 25 years old. “We anticipate a future that will be very different from today in terms of innovation, enterprise, and job and wealth creation,” Nwabufo added.
SADC Secretariat implementing Intra-ACP Climate Services and Related Applications Programme (SADC)
The Southern African Development Community (SADC) Secretariat is implementing the Intra-African Caribbean and the Pacific (ACP) Climate Services and Related Applications (ClimSA) programme across the Southern Africa region. ClimSA is a six-year project which aims to improve the production, access to and use of climate information, services and applications for decision-makers.
As one of seven regional organisations, SADC Secretariat signed the Contribution Agreement for ClimSA with the EU in October 2019 and launched the programme in April 2021. The total cost of the programme is US$8,748,000 and is funded by the 11th European Development Fund. The ClimSA programme also features a Focus Country, in which some activities will be implemented at the national level. In the SADC Region, Angola has been identified as the first Focus Country.
Horn of Africa faces most ‘catastrophic’ food insecurity in decades, warns WHO (UN News)
More than 37 million people are facing acute hunger, with approximately seven million children under the age of five acutely malnourished in the region. While finding food and safe water is the absolute priority, WHO said that ensuring a strong health emergency response is needed to avert preventable disease and deaths. The UN agency is calling for $123.7 million to respond to rising health needs and prevent a food crisis from turning into a health crisis. “The situation is already catastrophic, and we need to act now,” said Ibrahima Soce Fall, WHO Assistant Director General for Emergencies Response. “We cannot continue in this underfunding crisis”.
Climate change, conflict, rising food prices and the COVID-19 pandemic have compounded one of the worst droughts in the region in recent decades, according to the WHO appeal.
Global economy news
How can we harness aid for trade for a just transition to sustainable trade? (Trade for Development News)
Aid for trade is a crucial part of the integrated policy approach needed for trade and trade policies to advance sustainable development and support environmental objectives in least developed countries. At the Eighth Global Review of Aid for Trade on 27–29 July 2022, governments and stakeholders shared views on how best to harness aid for trade to support a just transition to sustainable trade that addresses the needs of developing and least developed countries.
As governments and stakeholders work to promote the economic transformations vital to achieving resilient, low carbon, and sustainable development, aid for trade is an important component of the financing and partnerships required to support a just transition for LDCs that supports new economic opportunities and decent work.
UNIDO Director General calls for a fairer global trade system with binding international standards (UNIDO)
UNIDO Director General Gerd Müller took part in the World Trade Organization’s Eighth Aid for Trade Global Review with the theme “Empowering Connected Sustainable Trade”. In his introductory remarks at the Opening Plenary session, Müller called for a move towards a fairer global trade system, with increased investment in productive capacity in developing and least developed countries. Moreover, he declared it a “moral must” that international social and ecological standards be established, respected and enforced to prevent the exploitation of nature, people, and especially children, in global supply chains.
Müller later participated in the roundtable discussion on “Better Trade for Better Health” focusing on the fight against illicit trade in medical products. He drew attention to the urgent need to combat substandard and counterfeit products and expand high quality manufacturing capacity for vaccines and essential medicines worldwide to assure a fair availability of these life-saving medicines and to avoid a repetition of the disastrous imbalance in the distribution of COVID-19 vaccines.
TIR needed to boost connectivity of landlocked developing countries (IRU)
The United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS) and the Republic of Botswana conducted, in close collaboration with World Trade Organization (WTO), a session on improving the connectivity of landlocked developing countries (LLDCs) last week. The session took place during the Aid for Trade Global Review 2022.
IRU’s TIR Director Tatiana Rey-Bellet outlined the benefits of TIR in improving transit connectivity, facilitating cross-border trade and turning landlocked countries into land-linked countries. The recent implementation of TIR and digital TIR solutions in LLDCs of Central Asia is a successful example of the economic growth potential when transit runs under TIR.
Highlighting the relation between the WTO’s Trade Facilitation Agreement (TFA) and the TIR Convention, Tatiana Rey-Bellet commented: “The TIR system provides the necessary mechanisms, ensuring both security and facilitation of traffic in transit. The principle of mutual recognition under TIR eliminates the burden of filing a transit guarantee at the entry to each country. With TIR, transport does not need to stop at each border and the same guarantee applies for the whole journey. Moreover, identical information on the transit movement is provided in advance to all customs authorities along the itinerary. This way, TIR supports the implementation of the WTO’s TFA and contributes to boosting intra- and inter-regional trade.”
Transforming the Global Economy: A Key Role for the IFIs (Modern Diplomacy)
SMEs play a significant role for the economic growth in developing countries, such as Indonesia. They are estimated to represent around 90% of the businesses and 50% of employment worldwide. Data per May 2021 from the Ministry of Cooperatives and SMEs shows that there are more than 64 million SMEs actors in Indonesia that contribute to roughly 61% of national GDP with over 97% of total labour absorption. With this such huge scale of business representation, it is rather important to put more effort bolstering SMEs in Indonesia to be more resilient and sustainable for the benefit of the national economic growth as well as public welfare improvement.
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Increased import duties will help local industry compete against dumped goods – SATMC (Engineering News)
Industry association the South African Tyre Manufacturers Conference (SATMC) says more than 70% of tyres sold by its members are produced in South Africa. It further notes that its application to the International Trade Administration Commission of South Africa (Itac) is part of efforts to rescue the local tyre industry. The SATMC’s comments follow a briefing earlier this week by the road transport and freight industries, as well as the Tyre Importers Association of South Africa (Tiasa), in which they said they would be opposing the application to Itac by domestic tyre manufacturers seeking increases in respect of import tariffs for tyres originating from China. Tiasa said it was worried that the proposed tariff increases would raise the prices of tyres in South Africa.
“The SATMC supports healthy trade and competition at fair prices. However, tyres designed and manufactured in China are imported unfairly into South Africa at unsustainable, rock-bottom rates, which limits the competitiveness of domestic manufacturers.
Govt suspends chicken import tariffs to ‘help cash-strapped consumers’ (Engineering News)
The South African Meat Imports and Exporters Association (Amie) has welcomed national government’s decision to suspend anti-dumping duties on chicken imported from Brazil, Spain, Poland, Ireland and Denmark for 12 months. Trade, Industry and Competition Minister Ebrahim Patel indicated in the Government Gazette on August 1 that, in making the decision, government considered the current rapid rise in food prices in the Southern African Customs Union (SACU) market and globally, and the significant impact this has on the poor. Patel said the imposition of anti-dumping duties may impact on the price of chicken as one of the more affordable protein sources. The Minister therefore decided to suspend the imposition of anti-dumping duties for 12 months.
South Africa: Agriculture minister steps up efforts to save citrus shipped to EU (The Africa Report)
“Our farmers must have confidence that our minister and the department are working around the clock to negotiate a positive outcome,” says Reggie Ngcobo, spokesperson of the agriculture department. The short-term goal is to negotiate for the citrus consignments to be off-loaded, which would avoid a worst-case scenario of the produce being destroyed. However, South Africa has lodged a formal dispute against the EU at the World Trade Organisation. The trade fracas has caused an uproar among South Africa’s citrus-growing farmers and even reached the highest corridors of power, with the issue being raised when European Council president Charles Michel met President Cyril Ramaphosa a week ago. South African citrus exports to the EU generate more than €1bn ($1bn) for the industry, according to the CGA.
New-vehicle sales, exports surge – but compared with a weak July 2021 (Engineering News)
Domestic new-vehicle sales in July surged by 30.9%, to 43 593 units, compared with the same month last year. The Automotive Business Council warns, however, that last month’s performance was distorted by the cyberattack on Transnet, as well as the widespread riots that plagued parts of the country in July last year.
Trade, Industry and Competition celebrates 28 years of bilateral trade relationships between South Africa and Botswana (South African Government)
In celebration and commemoration of 28 years of bilateral economic relations, the Ministry of Trade and Industry of the Republic of Botswana together with the Department of Trade, Industry and Competition (the dtic) of the Republic of South Africa are convening a High Level Business Forum and Roundtable on the 03rdand 04th of August 2022, in Gaborone, Botswana.
both countries anticipate the following outcomes: identification and recommendation of measures to address trade and investment barriers between the two countries; identification of trade and investment opportunities as a basis to strengthen cooperation at government and private sector level to advance localization, joint export promotion efforts and industrialization efforts identification of a package of concrete actions to create a conducive environment to strengthen business to business linkages and cooperation to support the implementation of Southern African Customs Union (SACU) Regional Value Chains and the African Continental Free Trade Area (AfCFTA).The Deputy Director General for Trade and Investment South Africa at the dtic, Ms Lerato Mataboge says this session is critical in cementing ties between the two countries.
Tanzania’s meat exports to Middle East hit record high (The Citizen)
Tanzania exported a record 10,000 tonnes of meat to the Middle East in the first six months of this year. This offers prospects of a reliable market there as only 7,000 tonnes were exported during the whole of 2021.”By December this year, the tonnage will certainly be double the amount exported until June,” said Livestock and Fisheries minister Mashimba Ndaki. He revealed this during a regional meeting on meat production for the Southern Africa Development Community (Sadc) member states.
Import cover in six-year low as bond cancelled (Business Daily)
Kenya’s import cover has fallen to the lowest levels in six-and-a-half years after the National Treasury cancelled more than a $1 billion sovereign bond, shrinking the country’s stock of dollar reserves. The Central Bank of Kenya last Thursday held foreign currencies amounting to $7.74 billion (Sh919.90 billion) which can cover the country’s import needs for 4.46 months, the lowest backup since 4.44 months of cover on January 28, 2016.The foreign exchange reserves are largely tapped for government payments like servicing external debts and essential government imports such as medicines.
Kenya abandoned plans to borrow at least $1 billion (Sh118.85 billion) from international capital markets — Eurobond — in the recently ended fiscal year after interest demanded by investors doubled to about 12 percent from 6.3 percent Kenya paid a year earlier for a similar amount.
The import cover is, however, still within the target level of four months, but has fallen below the desired 4.5 months cushion recommended by the seven-nation East African Community bloc.
Kenya risks losing Sh1.5bn coffee market as Japan flags local exports (Business Daily)
Kenya risks losing the Sh1.5 billion Japanese coffee market after the authorities in Tokyo raised a red flag over the use of non-recommended pesticides in the produce.
The Japanese said samples taken out of Kenyan coffee have been found to have Chlorpyrifos- an active ingredient found in the insecticides and which is not recommended for use in coffee. The authorities say they detected 0.06 parts per million in the coffee that was sampled, which was above the required minimum of 0.05 percent. Japan is currently Kenya’s sixth largest importer of coffee having earned the country Sh1.5 billion in foreign exchange last year.
Zimbabwean minister decries low level of trade with Rwanda (The New Times)
Zimbabwe’s Minister of Foreign Affairs and International Trade, Fredrick Shava, has bemoaned the low levels of trade and economic cooperation with Rwanda saying this does not match the levels of friendship the two countries enjoy. Shava said there is an urgent need to enhance trade and economic cooperation between Rwanda and Zimbabwe in line with the cordial relations the two countries enjoy.
“The framework of the Zimbabwe Rwanda Trade and Investment Conferences which we have started implementing should therefore spur us to greater heights in this field of economic endeavor,” Shava said. “I am confident that coupled with opportunities presented by the African Continental Free Trade Area our economic and trade relations will greatly improve.”
Both countries have held reciprocal trade and investment conferences aimed at identifying and exploiting opportunism presented by each of the two countries.
Zambian Prez underscores the need for low-cost capital for Africa (News Ghana)
President Hichilema Hakainde of the Republic of Zambia has expressed concern that national incomes for African countries remained low coupled with high inequality and poverty rates partly due to huge infrastructure deficits and low levels of human development and private investment. To address this the Zambian President underscored the need for Africa to access low-cost capital and a establish predictable, competitive and stable economic policy environment.
President Hichilema stated in a speech read on his behalf at the AU Member States Ministers of Finance, Monetary Affairs, Economic Planning, and Integration which focused on “Improving Africa’s access to Capital: Debt Management and the Rising Influence of Credit Rating Agencies.” A document made available to the Ghana News Agency in Tema explained that the 5th Ordinary Session of the Specialized Technical Committee also made far-reaching recommendations on assessments by the Member States on the state of the debt crisis in their respective countries as a way of promoting transparency and accountability, which in turn facilitates debt restructuring and reduces vulnerabilities.
GEPA to establish Export School and Impact Hub in Kumasi (GhanaToday)
The Chief Executive Officer (CEO) of Ghana Export Promotion Authority (GEPA), Dr Afua Asabea Asare, has disclosed that the Authority will be establishing an Export School and Impact Hub in Kumasi. She said this when she called on the Ashanti Regional Minister, Mr Simon Osei-Mensah, at his office in Kumasi after a broadcast show GEPA undertook to sensitize the public on available opportunities under the African Continental Free Trade Area (AfCFTA). Dr Asare said the school is a strategy adopted to build and expand the required human capital for the export industry.
The CEO said the Impact Hub is designed to provide value-added services to Small and Medium Enterprises because it incorporates other entities like the Ghana Standard Authority, Food and Drugs Authority and the Food and Agriculture Ministry.
Egypt, Djibouti discuss developing trade exchange, joint investments (Daily News Egypt)
Egypt’s Minister of Trade and Industry Nevine Gamea met Djibouti’s Minister of Trade and Tourism Mohamed Warsama Dirieh and his accompanying delegation in Cairo on Monday. The meeting discussed ways to develop joint economic and trade relations between the two countries. The meeting also tackled the current global economic developments in light of the COVID-19 pandemic and the Russian-Ukrainian crisis.
The volume of trade exchange between the two countries witnessed a tangible development during the past year, reaching $95m, compared to $82.1m in 2020, an increase of 15.7%. Egyptian exports to Djibouti amounted to $88.3m, and Egyptian imports reached $6.7m. The most prominent goods of trade exchange between the two countries included nitrogen fertilizers, mixtures of aromatic materials, cleaning preparations, live camels, and Arabic gum, according to the Egyptian Minister.
Nigeria and Egypt test different approaches to tax digital economy (Daily News Egypt)
The booming digital economy in many African countries like Nigeria and Egypt raises the hopes for more revenues for the countries in their COVID-19 fatigued economies. More tax revenues derived from the digital economy could help governments of African countries save their crumbling education and healthcare systems.
But much of these funds from the digital economy are being sucked out of the continent by non-resident multinational enterprises (MNEs). These companies escape taxes on the profit they make in various countries because of the age-old international tax rules which require companies to be physically present in a country to be taxed by the country.
On October 8, 2021, the 137 member countries and jurisdictions (the list has since grown to 141) of the OECD/G20 Inclusive Framework on BEPS unveiled a Two-Pillar solution deal to tackle the tax challenges arising from the digitalisation of the economy and introduce a global minimum tax. Pillar 1 seeks to remove the requirement of physical presence of firms in a country for the country to have a right to tax them. Pillar 2 seeks to curb the incentives for MNEs to shift profits from high tax jurisdictions to tax friendly jurisdictions.
Nigeria and Egypt, like many countries of the world just recovering from the devastating impact of COVID-19, are in desperate need of money. But, unlike Nigeria, Egypt rests its hope of raising its tax revenues from the digital economy on the Inclusive Framework Two-Pillar solution deal.
The construction of the Nigeria-Morocco gas pipeline is underway and everything points to the project having very positive consequences. Younes Maamar, a Moroccan energy and development expert, was interviewed by the official Moroccan news agency, MAPNews, where he stated that the pipeline will be beneficial in every way.
“The importance of this project is the development of a regional gas infrastructure for the benefit of all the countries that this pipeline will cross, because it would do three things. Firstly, it would consolidate the small markets of all these countries that, on their own, do not have the critical mass to develop a gas infrastructure for their own market,” the energy expert says.
African Development Bank and Côte d’Ivoire start preliminary discussions for 2023-2027 strategy (AfDB)
The African Development Bank and the government of Côte d’Ivoire initiated a preliminary dialogue in Abidjan on July 18-22, 2022, to lay the foundations for the Bank’s strategy in Côte d’Ivoire over the next five years.
The discussions focused on the first version of the country diagnostic note, prepared by the Bank for Côte d’Ivoire, and the completion report of the Bank’s 2018-2022 Country Strategy Paper (CSP) for Côte d’Ivoire, which expires at the end of the year. The dialogue also included a performance review of the portfolio of projects financed by the Bank in Côte d’Ivoire during 2022. Lessons were learnt regarding cooperation between the Bank and Côte d’Ivoire, and a number of strategic and operational recommendations were formulated with a view to improving future projects.
The Bank’s current Country Strategy Paper (CSP) for Côte d’Ivoire, which runs to the end of 2022, supports implementation of the Ivorian government’s National Development Plan for 2016-2020. The two pillars of the plan are: strengthening key infrastructure and governance for greater competitiveness and investment efficiency; and the development of agro-industrial value chains to promote inclusive and sustainable growth.
Morocco’s trade deficit swells 48.7% in Q1 as energy imports soar (Reuters)
Morocco’s trade deficit widened 48.7% to 150.5 billion dirhams ($14.6 billion) in the first six months of this year, as global commodities prices surged, the foreign exchange regulator said on Monday. Imports rose 44.2% from a year earlier to 365.5 billion dirhams, while exports increased 41.2% to 215 billion dirhams, the regulator said in a monthly report. Morocco’s energy bill soared the most, up 124.7% to 71.4 billion dirhams, while cost of wheat imports climbed 55% to 13.3 billion dirhams, as the drought-hit country reaps a meagre harvest.
African trade and development news
The African Union Commission (AUC) in collaboration with the Republic of Malawi and the United Nations Economic Commission for Africa (UNECA) organised the 11th African Internet Governance Forum (AfIGF 2022) in Lilongwe, Malawi from 19th to 21st July 2022 under the theme Digital Inclusion and Trust in Africa.
Speaking during the occasion, President of the Republic of Malawi H.E. Dr Lazarus Chakwera stated that his government attaches high priority to digitalization. “The vision for a “digital Africa” can only be realized if we invest in indigenous solutions and workforce to drive this transformation. Africa must be a leader in this revolution with its youthful population is already strategically positioned to create tailored made digital solutions for Africa’s problems”. Said the President. On her part, the African Union Commissioner for Infrastructure and Energy, H.E. Dr Amani Abou-Zeid said “Since 2020, digital technologies have proven to be the lifeline that made our communications easy, our work going and businesses functioning. “We can’t go back as we need to ensure digitalization is deep-rooted in our economies since our ultimate goal is to create a single digital market for a united Africa”, she added.
The African Statistical Yearbook 2021 (AfDB)
The Yearbook series is a result of joint efforts by major African regional organizations to set up a joint data collection mechanism of socioeconomic data on African countries as well as the development of a common harmonized database. The Joint African Statistical Yearbook is meant to break with the practices of the past where each regional/subregional organization was publishing statistical data on African countries of the continent in an inefficient way, leading to duplication of efforts, inefficient use of scarce resources, increased burden on countries and sending different signals to users involved in tracking development efforts on the continent. It is expected that the joint collection and sharing of data between regional institutions will promote wider use of country data, reduce costs and significantly improve the quality of the data and lead to better monitoring of development initiatives on the continent.
East Africa Heads of State officially launch the Arusha Bypass Road (AfDB)
On 22 July 2022, Heads of State of the East Africa Community (EAC) launched the Arusha Bypass Road, during the EAC Heads of State summit, which took place in Arusha, Tanzania. The 42.4 km bypass seeks to decongest traffic in the towns of Arusha and Moshi and to promote intra-regional trade. It is a component of the multinational Arusha-Holili/Taveta-Voi Road project, funded by the African Development Bank Group, and connects Tanzania and Kenya. The funding, from the African Development Fund, the Bank’s concessional window, amounts to $217 million, $112 million for Tanzania and $105 million for Kenya.
Speaking during the event, President Kenyatta said the road would reduce traffic congestion and foster integration of the EAC. He also noted that that it will make transporting goods between Tanzania and Kenya and the wider EAC easier.
The African Development Bank Director General for East Africa, Nnenna Nwabufo, was present at the launch of the road project and said: “The Arusha Bypass will not only enhance trade between Tanzania and Kenya, but will also facilitate trade for landlocked regional neighbors, namely Rwanda, Burundi, Uganda and eastern Democratic Republic of Congo.”
African Governments must invest in indigenous digital solutions — Malawi President (Modern Ghana)
African Governments must invest in indigenous digital solutions and workforce to drive the agenda of transforming the digital space in Africa.
“Africa must be a leader in this revolution with its youthful population who are already strategically positioned to create tailored made digital solutions for Africa’s problems,” Dr Lazarus Chakwere President of Malawi stated at the 11th African Internet Governance Forum (AfIGF 2022) in Lilongwe, Malawi.
The vision for a “digital Africa” can only be realized if we invest in indigenous digital solutions, Dr. Chakwere stated as captured by the Communication for Development and Advocacy Consult (CDA Consult) in Tema.
How Agtech can ‘dramatically improve’ food insecurity on the continent (The Africa Report)
Hopes have grown in recent days that grain shipments could resume, following a deal to unblock exports from Black Sea ports. But the intense disruption to one of the world’s largest bread baskets this year has worrisome implications for Africa’s food security. In the opinion of the World Food Programme (WFP), famine is likely unless urgent action is taken. A sustainable solution to food security cannot rely purely on the traditional approach of Western aid transfer. Instead, Africa’s leaders should lean into a continent-wide revolution in agricultural technology. This debate is not just about food; it’s about how Africa develops and prospers in the years ahead.
According to the WFP, the number of people effected by food insecurity in the Sahel has more than tripled since 2018, to 43 million people this year. There are three key areas where African leaders should focus their attention to turbocharge agtech and have a lasting impact on food security: data, digital tools, and start-ups.
Over the past few decades, Africa’s food import bill has also tripled, reaching around $35bn a year (World Bank figures). Many countries rely on agricultural exports from Russia and Ukraine and the continent is highly vulnerable to global supply chain disruption. The recent reduction in the supply of seeds and fertiliser has led to soaring prices, food shortages, and the risk of starvation.
The fourth edition of the intensive and engaging Africa Climate Talks (ACT!-4) closed yesterday in Maputo, Mozambique.
This was the first session of ACT!-4 organized as part of a regional Climate Talks series by the African Climate Policy Centre (ACPC) of the ECA to pursue the theme, “Ensuring a just and equitable transition and human security in Africa: Building resilience.” This year’s theme builds up on the gains realized from last year, which run under the aegis, “Climate Change and Development in Africa: African perspectives on climate resilient recovery from COVID-19”.
Speaking on behalf of Vera Songwe, the Executive Secretary of the ECA, Jean Paul-Adam, who heads the Technology, Climate Change and Natural Resource Management division at the ECA, noted that ACTs! serves as an all-inclusive climate change and development dialogue forum. “The fourth ACTs! is an opportunity to deliberate on viable solutions on Just Transition, Loss and Damage, innovative financing models including green and blue bonds as well as Climate-Debt-Swaps to boost resilience in Africa.”
African Growth and Opportunity Act: Program usage, trends, and sectoral highlights (Brookings)
The African Growth and Opportunity Act (AGOA) is a preferential trade program that gives countries in sub-Saharan Africa preferential access to U.S. markets, allowing them to export products tariff-free.1 AGOA was created with the aim of increasing trade activity between the United States and sub-Saharan African countries and with a broader goal of fostering economic and political development in Africa.2 To date, AGOA has greatly increased total exports to the United States, but data on utilization rates has caused some to question why certain countries are able to capitalize on AGOA more than others. Despite some successes, the continued dominance of oil and apparel exports along with the decline in AGOA exports after their peak in 2008 has lowered confidence among some leaders and experts in AGOA’s ability to deliver on its promises. The potential of AGOA remains powerful to promote regional integration and diversified economies, but the data and experience of the past two decades must be examined to understand how the policy can be better structured and implemented in the future. While there is limited empirical evidence on the effects of these factors on AGOA implementation and success, this testimony suggests that they can be analyzed by comparing across commonalities and by using the lens of policy implementation theories. Themes that emerged from the discussion with Commissioners included the role that the African Continental Free Trade Area can play in widening and deepening AGOA’s successes, and the importance of value-adding activities being located in African countries.
Economic Watch: African diplomats expect closer economic ties with China (China Daily)
Twenty-nine diplomats from 15 African countries visited the pilot zone for the In-Depth China-Africa Economic and Trade Cooperation Program in central China’s Hunan Province from July 27 to 29. They expressed confidence in China’s economy and said they expected closer economic and trade ties between their country and China. Despite recurring COVID-19 outbreaks and the complex and volatile international situation, the diplomats said China’s economy is resilient and the Chinese market is full of opportunities. They expressed hope to strengthen cooperation with China in sectors such as agriculture, the digital economy and health care. According to the Tanzanian ambassador to China Mbelwa Kairuki, China’s 1.4-billion-strong consumer market has plenty of opportunities for all African countries.
“China-Africa trade and economic cooperation has been increasing in the last 20 years,” said Kairuki, who is convinced that there will be more opportunities for Tanzania to export products to China, especially high value-added products.
Partnership can boost rural industrialization in Africa (China Daily)
Africa remains the world’s least-industrialized region, despite the continent’s ongoing infrastructure development. Its economies still rely on raw materials, so its share of global manufacturing is only around 1.9 percent, according to the African Development Bank. Thus, when the global community faces unprecedented challenges emanating from changing global governance, the socioeconomic impacts of COVID-19 and the ongoing Russia-Ukraine conflict, Africa becomes the hardest-hit continent on matters related to food security and economic growth.
The African Development Bank recently launched the $1.5 billion Emergency Food Production Facility to mitigate the effects of the Russia-Ukraine Conflict, climate change and COVID-19 on food security in Africa.
Three problems with the EU’s ‘Global Gateway’ to Africa (EUobserver)
The EU’s investment package for development, the “Global Gateway”, which the EU Commission president Ursula von der Leyen described as the “future of the EU’s development cooperation”, seems fixated on boosting private sector investments in energy, infrastructure and climate-smart solutions in Africa. But it is unclear whether this investment package of the world’s largest aid donor will trickle down within African communities, reaching those needing it the most. It is also unclear if it will be part of the problem or the solution when it comes to fighting hunger and transforming our broken food systems.
Global economy news
Report of the TPRB from the Director-General on trade-related developments (WTO)
Transparency is critical for the individuals and companies that make the global economy work. That’s why Members have placed transparency at the heart of the multilateral trading system — and of this monitoring exercise, which provides you a fact-based platform for analysis and non-legal peer review.
Overall, the Report shows that Members have shown restraint in the use of trade-restrictions. The trade coverage of the import-facilitating measures far exceeds that of import-restrictive measures. This is positive and it shows that Members understand the importance of keeping markets open and letting trade flow.
Another challenge that has emerged even as the number of pandemic-related trade restrictions has waned relates to what is happening in the area of global supply chains. Open trade and global value chains have historically fostered increased competition, specialization, and scale. But over the past two years, the pandemic has upended supply chains — factory closures and transport restrictions constrained the supply side, while consumers pivoted from services to durable goods, even as fiscal and monetary stimulus boosted aggregate demand.
WTO launches database on gender equality provisions in regional trade agreements (WTO)
This new policy tool “complements the ongoing work of the Informal Working Group on Trade and Gender on issues related to data collection, one of our priorities”, said Ambassador Athaliah Molokomme of Botswana, co-chair of the Informal Working Group on Trade and Gender. The database maps more than 300 gender provisions included in more than 100 regional trade agreements (RTAs), representing almost a third of RTAs currently in force and notified to the WTO by members. The provisions identify the type of gender issue being addressed, the implementation instruments, and the enforcement mechanism.
The WTO Trade and Gender Officer, Lolita Laperle-Forget, who designed the database, stressed the importance of demystifying gender provisions in order to support the formulation of gender responsive RTAs and ensure that women are not left behind in trade opening policies.
China announces zero-tariff treatment for least-developed countries (China Daily)
China will offer zero-tariff treatment on 98 percent of taxable products from 16 least-developed countries, including Togo, Djibouti, Cambodia and Rwanda, according to a statement released by the Customs Tariff Commission of the State Council on Monday. Coming into force on September 1, the move will facilitate to share market opportunities with these countries, push for common growth and advocate the building of a community with a shared future for mankind, said the statement.
Nigeria, others plead with G20 for debt service extension (The Nation)
Nigeria and other African countries have written a letter to the Group of 20 (G20) countries to extend their debt servicing timeline. They took the step to ensure that debt servicing obligations do not cripple their economies.
The plea is contained in a letter by the Ministers of Finance of Ghana, Senegal and Egypt, on behalf of African Ministers of Finance and Central Bank Governors, and copied to the Chairperson of G20 Chairperson, African Union (AU) Managing Director, International Monetary Fund (IMF) President, The World Bank.
In the letter, the African Ministers of Finance and Central Bank governors said: “We ask for immediate liquidity support akin to the global response during the COVID-19 pandemic to help support our economies.
“The end of the G20 Debt Service Suspension Initiative (DSSI) in December 2021 meant that countries are due to resume payments on their debt obligations, despite a deteriorating global context, particularly for middle and low-income economies on the African continent.
Ukraine: Guterres welcomes departure of first grain ship, to help ease food crisis (UN News)
In a statement issued by his Spokesperson, UN Secretary-General António Guterres said that ensuring “existing grain and foodstuffs can move to global markets is a humanitarian imperative.” The deal dubbed a “beacon of hope” by Mr. Guterres when it was signed in the Turkish city of Istanbul on 22 July, is a “collective achievement” of the newly-established Joint Coordination Centre, or JCC, set up in Istanbul, under the auspices of the UN, by representatives from the three governments who inked the deal, known officially as the Black Sea Grain Initiative.
Since the deal was signed, the parties involved “have been working tirelessly” to begin the process of shipping grain and cereals out from Ukraine’s Black Sea ports.
“The Secretary-General hopes that this will be the first of many commercial ships moving in accordance with the Initiative signed, and that this will bring much-needed stability and relief to global food security especially in the most fragile humanitarian contexts.”
Food Security Update | Rising Food Insecurity in 2022 (World Bank)
Record high food prices have triggered a global crisis that will drive millions more into extreme poverty, magnifying hunger and malnutrition, while threatening to erase hard-won gains in development. The war in Ukraine, supply chain disruptions, and the continued economic fallout of the COVID-19 pandemic are reversing years of development gains and pushing food prices to all-time highs. Rising food prices have a greater impact on people in low- and middle-income countries, since they spend a larger share of their income on food than people in high-income countries. This brief looks at rising food insecurity and World Bank responses to date.
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Trade Statistics for June 2022 | South African Revenue Service (SARS)
The South African Revenue Service (SARS) today releases trade statistics for June 2022 recording a preliminary trade balance surplus of R24.23 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN). The year-to-date (01 January to 30 June 2022) preliminary trade balance surplus of R133.52 billion is a deterioration from the R249.86 billion trade balance surplus for the comparable period in 2021. Exports increased by 16.7% year-on-year whilst imports increased by 47.6% over the same period.
A look at the mega projects planned for South Africa (BuinessTech)
Transnet National Ports Authority (TNPA), the wholly-owned subsidiary of Transnet says it has a strategy to become a world-class port operator, and will focus on the hub port in Durban. Earlier this week, Transnet reported a slight increase in revenue for the year ended March 2022, to R68.5 billion, while EBITDA (Earnings before interest, taxation, depreciation and amortisation) improved by 20.5% to R23.4 billion. Profit for the year is R5 billion from a loss of R8.7 billion in the prior year. The significant increase in profits is mainly attributable to the improvement in the EBITDA, a decrease in asset impairments and an increase in fair value adjustments related mainly to investment property (IP), it said.
“Part of Transnet’s hub port strategy includes further development of the Ngqura port into an efficient, trans-shipment-focused container terminal. The port has modern infrastructure and equipment, and is capable of handling large container vessels,” Silinga said. Due to operational challenges and lack of competition, Silinga said the Ngqura container terminal is currently not making effective use of its capacity.
Kganyago warns of climate change threats to growth (IOL)
The SA Reserve Bank warns that climate change has emerged as a key threat to economic and financial stability in the country, following the devastating floods in KwaZulu-Natal (KZN). “The economic research department is assessing the implications of climate related shocks for monetary policy execution and implementation,” he said. “Climate change and the transition to a greener economy have the potential to generate larger, longer and often more frequent economic and financial shocks, with disruptive effects for economic activity and high inflation.” Climate change is already manifesting rapidly in the form of droughts, fires, floods, resource scarcity and species loss, among other impacts.
South Africa turns to renewables, gas and batteries to end power cuts (Climate Change News)
South Africa’s president Cyril Ramaphosa has promised to end the country’s frequent electricity black-outs by mobilising investment in renewables, gas and batteries. In a prime-time address to the nation on Monday, Ramaphosa said: “After more than a decade without reliable electricity supply, South Africans are justifiably frustrated and angry. They are fed up.” Ramaphosa blamed the power cuts on the country’s old and unreliable coal power plants, on the “design flaws” in two new coal power plants and on “extensive theft, fraud and sabotage” and “years of state capture and mismanagement” under his predecessor Jacob Zuma. After talking to trade unions, business, experts and opposition parties, Ramaphosa said he planned to fix the black-outs by improving the existing power plants, encouraging investment in renewables, flexible gas generators and battery storage and enabling businesses and households to sell rooftop solar to the grid.
WCO conducts Integrity Diagnostic Mission for Eswatini Revenue Service (WCO)
The World Customs Organization (WCO) conducted an Integrity Diagnostic mission in Mbabane, Eswatini, from 18th to 22nd July 2022 to support the implementation of a robust anti-corruption and integrity development by the Eswatini Revenue Service (ERS). The mission was a follow-up to the recommendations of a scoping mission conducted by the Sida-WCO Trade Facilitation and Customs Modernization (Sida-WCO TFCM) Programme in June 2021, on the priority areas for implementing an effective integrity development program in ERS.
As part of the mission objectives, the WCO team, comprising member Experts from the South African Revenue Service (SARS) and Mauritius Revenue Authority (MRA), performed an organizational assessment of the ERS anti-corruption and integrity development initiatives using a comprehensive and detailed methodology in accordance with the WCO Revised Integrity Development Guide (RIDG) to assist ERS staff to assess their compliance with the requirements of the Revised Arusha Declaration on Integrity in Customs.
As part of their assessment of the integrity issue in their environment, the experts met with the Anti-Corruption Commission and private sector stakeholders. In order to examine the customs procedures, the WCO experts also visited the Ngweya Border Post between South Africa and Eswatini.
New report reveals Maseru generates half of Lesotho’s GDP (UNECA)
A new report for the first time reveals that Lesotho’s capital city Maseru, which accounts for only 17 per cent of the country’s population, generates about half of the country’s annual gross domestic product (GDP) – a vital economic well-being indicator. The report, developed by the Lesotho Bureau of Statistics with the support of the United Nations Economic Commission for Africa (ECA), was validated by Lesotho’s national and local government officials, data specialists, national account experts, development experts and urbanisation practitioners at a workshop in Maseru on 25 July 2022.
Zimbabwe infrastructure upgrades to boost revenue performance (Bulawayo24 News)
GOVERNMENT expects the on-going infrastructural development projects, particularly the upgrading of major highways, to impact positively on revenue performance through improved transport and logistics movement, which enhances trade facilitation between Zimbabwe and regional markets.
The highway project, which closely connects to the US$300 Beitbridge Border Post modernisation, is critical given its significance as a major link for Zimbabwe to the North-South Corridor, which is a strategic trade route for the entire southern region and the Comesa bloc. When complete, the highway is expected to have eight toll plazas and result in increased and more efficient movement of cargo and passenger travel for the benefit of Zimbabwe and the entire region. Projected to cost US$650 million, the project is key towards attainment of Vision 2030, which seeks to transform the country into an upper middle-income economy and also feeds into the Africa Agenda 2063 developmental ideals.
“Infrastructure developments, particularly the completion of part of the Beitbridge-Chirundu Highway that links Zimbabwe to the North-South Corridor is expected to enhance revenue performance,” said Zimra Acting Commissioner General, Ms Regina Chinamasa, in a latest revenue
Slow govt progress on milk export talks worry producers (Monitor)
Milk exporters and private sector players have expressed concern, noting the speed with which government is conducting negotiations for markets reopening is extremely slow and frustrating. About three months ago, Uganda and Kenya completed talks in which it was agreed that Kenya would verify and clear exportation of milk into the country following months of bickering between the two countries. The ban is yet to be lifted with producers expressing frustration, amid falling returns and a narrowing market.
Speaking in an interview, Mr Simon Kaheru, Uganda’s delegate to the East Africa Business Council, told Daily Monitor that milk exporters, some of whom had gone as far as Zambia, have been frustrated, noting that government should find a quick way of resolving the impasse. ”One of our members had even gone as far as exporting milk to Zambia but has been frustrated by the standoff. As East Africans, we need to acknowledge and address the slow speed of resolution of these issues, because they hold back regional development,” he said.
In April a trade delegation from Kenya arrived in Uganda to iron out trade rifts between the two East African member states. At the end of the meeting, a number of resolutions were made but milk, which had been one of the subjects of the discussions, remains unresolved. Kenya has for about two years now maintained a ban on Ugandan milk from entering its territory.
Zambia IMF Managing Director Welcomes Statement Creditor Committee Zambia Common Framework (IMF)
“I am very pleased to welcome the statement issued on July 30 by the Official Creditor Committee for Zambia. The support from the Official Creditor Committee for Zambia’s envisaged IMF-supported program, together with its commitment to negotiate debt restructuring terms, accordingly, provides the IMF with official financing assurances. I strongly endorse the call by the Official Creditor Committee for private creditors and other official bilateral creditors to commit to comparable debt treatments.
“The delivery of these financing assurances will enable the IMF Executive Board to consider approval of a Fund-supported program for Zambia and unlock much needed financing from Zambia’s development partners.
First-time exporters encouraged to explore Zambian Market (The Herald)
Zimbabwean companies are set to increase exports to Zambia following increased engagements with buyers in the country, during the ongoing Zambia Agricultural and Commercial Show. National trade development and promotion organisation, ZimTrade, has facilitated 30 companies that are exhibiting at Zambia’s largest trade exhibition event, among them seven youth-owned enterprises.
ZimTrade Chief Executive Officer, Allan Majuru, said the comments received by participating companies from potential buyers shows a positive outlook for Zimbabwean products in Zambia. “There is potential for diversified products in the Zambian market riding on the existing positive reputation of Zimbabwe’s quality products. “Already most buyers in the market are familiar with the high quality of products from Zimbabwe and have indicated that they prefer our products compared to competition,” he said.
DG Okonjo-Iweala highlights success of Nigeria’s Growth Platform in driving digital trade (WTO)
The COVID-19 pandemic has played an important role in accelerating digital connectivity, DG Okonjo-Iweala stressed, citing two reports launched on Day 1 of the Global Review. “The pandemic also underscored shortcomings,” she noted, “such as underdeveloped physical and regulatory infrastructure, unaffordable connections, and limited information and communications technology skills, especially among MSMEs”. With a population of over 1.3 million – representing one-sixth of the world’s population – Africa accounts for only 3 per cent of global trade. The Growth Platform was created in 2016 in Nigeria - Africa’s most populated nation - to help marginalized groups tap into the benefits that digital trade brings to economic growth and the achievement of development objectives.
Nigeria’s automobile sector comatose as import levy grosses N180bn (New Telegraph)
As records show that the Nigeria Customs Service has so far collected over N180 billion from the 35 per cent import levy on fully built cars, investors in the Nigerian automotive manufacturing sector, whom the levy was put in place by the Federal Government to assist, are gasping for breath. According to reports, not less than 20 of the 26 companies that commenced assembling of different brands of vehicles in the country at the inception of the auto policy have closed shop due to the current economic crunch and the unfavourable operating environment in Nigeria.
Deputy Managing Director of CFAO Motors, Kunle Jaiyesimi, who disclosed this at the weekend in Lagos, stated that Nigeria’s automotive industry was in a precarious situation and needed urgent intervention or the country would in no distant time become market for Ghana and other more serious African countries as the African Continental Free Trade Area (Af- CFTA) goes into operation.
Jaiyesimi made disclosures while making a presentation at the 7th edition of the Nigeria Auto Journalists Association ( NAJA) training/ capacity building workshop held on Friday in Lagos with the theme: “Accelerating Automobile Industry Recovery Strategy In Post-COVID-19 Era.”
Algeria, Africa’s Largest Natural Gas Exporter, Talks Of Joining BRICS (NDTV.com)
Algerian President Abdelmadjid Tebboune has suggested that his country, Africa’s largest natural gas exporter, could join the BRICS economic group that includes Russia and China. Tebboune’s comment comes after Russian President Vladimir Putin -- whose country is hit with Western sanctions over its Ukraine invasion -- in June called on BRICS leaders to move towards “formation of a truly multipolar system of inter-government relations”. The BRICS group also includes the major emerging economies of Brazil, India and South Africa. “The BRICS interest us” as an alternative to traditional power centres, Tebboune said in a televised interview late Sunday. “They constitute an economic and political force.”
African Development Bank adopts new Country Strategy paper for Egypt covering 2022-2026 (AfDB)
The African Development Bank Group’s Board of Directors has approved Egypt’s Country Strategy Paper for the 2022-2026 period. Under the new strategy, the Bank will be guided by the priorities of the country’s National Development Plan— also known as Egypt’s Vision 2030— and its Government Action Program 2023-2027. The goal is to support the country’s efforts to build a competitive and resilient economy. The new strategy builds on results and lessons from the preceding 2015-2021 strategy paper, which helped develop the country’s infrastructure and improve the business environment, fostering sustainable and inclusive growth.
IMF Executive Board Concludes 2022 Article IV Consultation with Equatorial Guinea (IMF)
Equatorial Guinea’s oil-dependent economy is slowly emerging from the ravages of the COVID-19 pandemic and Bata explosions, but substantial challenges remain. The relaxation of pandemic containment measures and higher international oil prices are helping boost economic activity, government revenues, and export earnings. However, surging food prices and banking sector vulnerabilities cloud the short term, while real GDP and living standards are expected to decline over the medium term.
Following a contraction of 3.2 percent in 2021, real GDP is projected to grow by 5.8 percent in 2022 supported by hydrocarbon production and Bata reconstruction. Starting in 2023, the economy is projected to contract through the medium term, reflecting a reduction in hydrocarbon output together with a stalled structural reform agenda.
African trade and integration news
WCO Secretary General addresses the AfCFTA Ministerial Meeting in Ghana (WCO)
At the invitation of the H.E Wamkele Mene, Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Dr. Kunio Mikuriya, Secretary General of the World Customs Organization (WCO), spoke at the opening session of the 9th AfCFTA Council of Ministers meeting, which took place on 25 and 26 July 2022 in Accra, Ghana. During the meeting, the AfCFTA Secretariat reported major strides towards achieving the African common market: 54 signatories of the agreement, 43 states had ratified the agreement, and 46 schedules deposited.
In his opening speech, Secretary General Mikuriya emphasized Customs’ importance in implementing trade agreements, basing their operations on international standards developed by the WCO, including the Revised Kyoto Convention and the SAFE Framework of Standards, that would ensure connectivity at borders. He mentioned the HS and Rules of Origin and how the WCO had been able to support the AfCFTA, leading to the launch of the E-Tariff Book and the Rule of Origin Manual as concrete examples of cooperation. He informed ministers of the recent WCO Council sessions’ focus on data strategy, green Customs, and fragile borders. In conclusion, he stated that there remained much room to enhance collaboration between Customs and trade ministries to achieve the common goal of a prosperous and integrated Africa and asked for political support of trade ministers present in this respect.
African Development Bank and International Monetary Fund (IMF) experts have stressed the urgency of mobilizing climate financing for Africa during a panel discussion on the African Development Bank’s 2022 African Economic Outlook hosted by the IMF in Washington, DC on Monday.
Participants at the meeting heard that African countries need to mobilize $1.6 trillion between 2022 and 2030 to meet their Nationally Determined Contributions to fight climate change, So far, they have only received $18.3 billion annually, leaving a financing gap of $108 billion annually. With current trends, Africa’s NDCs will not be achieved. Africa has huge comparative advantages to lead the world in this new green transition, but it lacks the capital to do so, African Development Bank’s Acting Chief Economist and Vice President Kevin Urama said in his presentation.
Urama emphasized that the findings of the 2022 African Economic Outlook, show that the structure of climate finance is very complicated and creates a misallocation of resources. As a result, the main objective of climate finance - to support climate-vulnerable countries - is not being achieved. “One fundamental, existential issue for Africa is climate change. The countries that are receiving climate financing are the less vulnerable ones,” Urama noted.
ECA inaugurates the fourth edition of Africa Climate Talks (UNECA)
The all-important fourth edition of the Africa Climate Talks (ACTs!), takes place in Maputo, Mozambique this week under the theme “Ensuring a just and equitable transition and human security in Africa: building resilience.”
ACTs! 2022 ACTS comes against the backdrop of more frequent and severe weather events, including unprecedented droughts, cyclones and tropical storms in East and Southern Africa. The West Indian Ocean region in particular has suffered considerable damage and losses from weather and climate related events.
The deliberations of the Maputo meeting will cover disaster preparedness, early warning systems, and insights of the sixth assessment report by the Intergovernmental Panel on Climate Change (IPCC), just transition, resilience building and the global stock take on adaptation. The all-inclusive forum will also benefit from engagement with the different policy and practical responses to climate impacts, and seek to contribute to the realization of the aspirations of Africa’s Agenda 2063 and the 2030 Agenda for Sustainable Development by identifying pathways to climate resilient development.
The issue of regional cooperation, continental synergies and global solidarity, aided by a strong multilateral framework in line with the aspiration of the Paris Agreement framework will also feature in the intensive ACTs! deliberations.
EABC optimistic business in EAC to rise by 11% in 2022/23 (East African Business Council)
Business Captains in the region are optimistic that business in the East African Community bloc is set to increase by 11% in 2022/23, this was revealed by the EABC Barometer on Business & Investment in the EAC & Outlook 2022/2023. The EABC Barometer was commissioned by EABC with support from GIZ and was officially launched during the Webinar on Facilitation of Cross Border Investments organized jointly by East African Community and AFRICA Reform for Investment and Sustainable Economies Project supported by the European Union.
Businesses in Burundi, Kenya, Rwanda and Uganda reported reduced cost of doing business while those in South Sudan and Tanzania felt that the costs increased during the pandemic and recovery relative to a year before the pandemic.
On Business outlook during 2022 into 2023, most businesses in Rwanda, South Sudan and Tanzania are optimistic about the following dimensions: Improvements in the business climate, Businesses performance, Governments will put in place interventions for business recovery, Recovery from the losses suffered during the pandemic and Expansion the businesses to other markets within the EAC post the pandemic. It is notable that businesses in Tanzania stood out with an optimistic view of the outlook across all dimensions.
East Africa Cross Border Trade Bulletin (July 2022, Volume 38) (ReliefWeb)
Maize grain remained the most traded commodity in the region in the first quarter of 2022 (January to March). Wheat and maize flour surpassed dry beans as the second and third most traded commodities in the region while, rice, sugar, and sorghum remained significantly traded.
Regional trade in maize, sorghum, rice, and dry beans was above average driven by above-average prices in deficit countries including Kenya, Rwanda, Burundi, Somalia, South Sudan, Eritrea, and Djibouti. This attracted supply from the main surplus countries of Tanzania, Uganda, and Ethiopia.
The prices of staple food commodities followed seasonal patterns but were elevated given below-average harvests, high inflation as a result of COVID-related pent-up demand driving up prices, as well as high oil, wheat, and flour prices due to the Ukraine-Russia conflict.
CEMAC Tariff Committee gauges progress in implementation of HS 2022 amendments (WCO)
The Central African Economic and Monetary Community (CEMAC) convened a meeting of its Tariff Committee to review progress in the implementation of the seventh edition of the Harmonized System (HS) by member countries and examine other issues in relation to tariff work in the Community. The meeting was held on 25 and 26 July 2022 in Douala, Cameroun. It was attended by delegations of Cameroun, Central African Republic, Chad, Republic of the Congo and Gabon, as well as the CEMAC Commission and the WCO. The meeting was co-organized and jointly financed by the CEMAC and the WCO, within the framework of the EU-WCO Programme for HS in Africa (HS-Africa Programme), funded by the European Union.
In their opening remarks, Mr. Michel Niama, Commissioner in charge of the Common Market at the CEMAC, Mr. Samuel Désiré Kwedi, Director of International Co-operation and Tax Bases at the Cameroon Customs, and Mr. Gilles Montagnat-Rentier, Senior Economist at the International Monetary Fund reiterated the importance of timely and coordinated implementation of HS amendments by all Community members. They emphasized the pivotal role of the HS and tariffs in ensuring correct and efficient administration of various policy measures, which was particularly relevant in the current context of unstable and disrupted supply chains. They welcomed the opportunity to discuss the implementation of the HS 2022 offered by the Tariff Committee meeting.
Delegates took note of the fact that the CEMAC, under the work plan and with the support of the EU-WCO HS-Africa Programme, had completed the work on the preparation of the 2022 version of the Common External Tariff (CET) well in advance of the implementation date, creating a good basis for member countries to migrate to the new version of the CET in a timely manner. The Committee expressed its appreciation to the CEMAC Commission and Cameroun for the technical preparatory work that they had carried out in that area for the benefit of the Community. Cameroun delegation delivered a presentation with detailed analysis of the process whereby the 2022 CET had been developed and the work model used in Cameroun to implement HS amendments at the national level.
Ministers of Finance conclude discussions on access to finances; debt restructuring and Africa’s credit rating (African Union)
African Union Member States Ministers of Finance, Monetary Affairs, Economic Planning, and Integration concluded their deliberations focused on “Improving Africa’s access to Capital: Debt Management and the Rising Influence of Credit Rating Agencies”. The meeting convened under the 5th Ordinary Session of the Specialized Technical Committee made far-reaching recommendations on assessments by Member States, on the state of debt crisis in their respective countries as way of promoting transparency and accountability, which in turn facilitates debt restructuring and reduces vulnerabilities. The Ministers of Finance and Central Bank Governors further recommended for the establishment of a regulatory institution in Africa in order to strengthen mechanisms on tax transparency, effective and prudential fiscal management, and combating illicit financial flows.
The Ministers reiterated the need to establish an African Credit Rating Agency on the basis of self-sustainability, political and financial autonomy, and adopted the Tax Strategy and the Strategy on curbing Illicit Financial Flows (IFFs).
The STC requested African Union Member states to ensure a significant proportion of their annual budgets are committed to the financing of industrialisation projects, supported by prudential taxation policies and practices to enhance domestic resource mobilization, to minimise rigidities in credit creation.
IFC Invests Record $9.4 Billion for Private Sector Development in Africa (IFC)
IFC provided record financing in Africa in fiscal year 2022 helping to develop regional pharmaceutical manufacturing, increase intra-Africa trade, expand access to climate financing, and strengthen food security among many other pressing development needs.
IFC made $9.4 billion in investments between July 1, 2021 and June 30, 2022 across 36 countries, the largest ever annual commitment for the continent. The investments include $3 billion in trade financing that is unlocking intra-Africa trade for thousands of small businesses, $2.1 billion that is supporting the continent’s green transition, from increasing access to climate finance to funding renewable energy projects, and $672 million that is supporting increased digital connectivity. IFC also provided $603 million in agriculture financing, helping to strengthen food security during a turbulent global economic period.
Some additional 2 million people will benefit from a second phase of the West Africa regional Food Systems Resilience Program (FSRP-2) approved today for a total amount of $315 million in International Development Association (IDA*) financing. FSRP-2 will support Chad, Ghana and Sierra Leone to increase their preparedness against food insecurity and to improve the resilience of their food systems. This comes at a moment where it is projected that approximately 38.3 million people in West Africa are projected to be in food security crisis.
“Multiple shocks, driven by climate change and environmental degradation, weaknesses of the food markets, conflicts and insecurity, Covid-19 implications, and the war in Ukraine have further deteriorated food insecurity and inflation across West Africa”, declares Ms. Massandjé Toure-Litse, the Commissioner for Economic Affairs and Agriculture at the Economic Community of West African States (ECOWAS). “FSRP-2 further expands cooperation across the ECOWAS region to ensure food security, now and into the future.”
More specifically, the new financing will help to (i) increase the effectiveness of agriculture and food crises prevention and management and strengthen the capacities to adapt to climate variability and change, (ii) strengthen the adaptive capacity of the food system’s productive base and make it sustainable, and (iii) support the regional food market’s integration by linking the beneficiary countries, consolidating their food reserve systems, and strengthening the development of strategic regional value chains”.
Six-Point Shared Vision for Youth Agenda in Regional Peace and Security (COMESA)
Youth delegates attending the 2nd High Level Ministerial Conference on youth, peace and security have presented a six-point shared vision for their agenda to Ministers in charge of youth affairs in the southern African region. The six points focus on strengthening the continental, regional and national frameworks for youth inclusion in decision-making relating to peace and security.
In their outcome statement the youth called for strengthening of the following: the implementation of AU continental framework on youth peace and security; engagement with decision-makers; National Youth Councils and youth organizations, research and development; technological advancement and Youth, Peace and Security (YPS) agenda monitoring and evaluation. “We call for urgent action by governments to address the challenges through the establishment and strengthening early warning and response systems at national, regional, and continental levels,” said the youth in the statement presented by the Chairperson of the COMESA Youth Advisory Panel, Ms. Angel Mbuthia.
New roadmap sets out nine priority actions for the implementation of the Ocean Decade in Africa (Africa Renewal)
Building on a robust participatory process initiated in 2018, the Ocean Decade Africa Roadmap provides a coordinated framework for ocean science planning and uptake, and a foundation to monitor the achievement of Decade priorities and outcomes in the region. The Ocean Decade Africa Roadmap, launched on the occasion of the African Conference on Priority Setting and Partnership Development for the UN Decade of Ocean Science for Sustainable Development (May 2022), provides both an aspirational vision and a solid plan for diverse stakeholders to convene around a common set of priorities for the implementation of the Decade at the African continental level and in adjacent island states.
Global economy
WTO issues new edition of World Tariff Profiles (WTO)
Summary tables at the start of the publication provide cross-country comparisons of the average “bound” or maximum tariff each economy may apply to imports from other WTO members and the average tariffs it applies in practice. Data is provided for the category of “all products” as well as for agricultural and non-agricultural products. Import and export profiles provide cross-country comparisons on the value of imports, export diversification, and relevant tariff data.
This edition also includes two special topics. The first analyzes the preferential rules of origin in international trade. The second special topic looks at the use of NTMs on “green” and “brown” energy products.
Aid for Trade must adapt to channel resources for an effective, green transition (WTO)
At a plenary session on the second day of the Aid for Trade event, speakers focused on how this initiative can help develop critical trade infrastructure while supporting resilient, climate friendly and inclusive trade outcomes. The session benefited from the expertise and practical insights of experts and financing partners engaged in green transition activities.
“Adapting to climate change by reducing climate-related risks and vulnerability is a key economic strategy. International trade can contribute to climate change adaptation efforts by enhancing economic resilience to extreme weather events through diversified supply chains, timely provision of essential goods and services, improved food security, and greater access to climate-related adaptation technologies,” WTO Deputy Director-General Xiangchen Zhang said.
6 things to know about Aid for Trade (Trade for Development News)
This year’s WTO Aid for Trade Global Review takes place against the backdrop of many simultaneous crises affecting the multilateral trading system. It is against this background that WTO will launch the results of the 2022 joint OECD-WTO monitoring and evaluation exercise.
The COVID-19 pandemic continues to disrupt the global economy. Rising public debt levels, inflationary pressures, notably in food and energy markets mean the outlook to developing countries, and especially least-developed countries is at best uncertain. Notwithstanding these immediate difficulties, developing and least-developed countries continue to face a range of supply-side and trade-related infrastructure obstacles which constrain their ability to participate in international trade.
Trade continues to play an important driving force not just of economic growth, but also poverty alleviation. Recognizing the role that trade can play in development, the WTO Aid-for-Trade Initiative seeks to mobilize resources to address trade-related constraints identified by developing and least-developed countries. But against the backdrop of multiple crises affecting the world economy, this task is challenging.
Under the theme “Empowering Connected, Sustainable Trade”, the publication analyses the changes in Aid for Trade priorities in developing and least-developed countries in response to the COVID-19 pandemic; how environmentally sustainable growth is being pursued in national and regional development strategies; digital connectivity and e-commerce growth priorities; and how Aid for Trade is empowering women towards sustainable development objectives.
First grain ship leaves Ukraine port of Odesa after UN-brokered deal (ThePrint)
The first grain ship left Ukraine’s port of Odesa on Monday morning, under a United Nations facilitated deal that will provide it safe passage through the Black Sea. This was the first vessel to have left a Ukraine port since the Russian invasion began on 24 February, Ukrainian Infrastructure Minister Oleksandr Kubrakov tweeted Monday. “It’s important for us to be one of the guarantors of food security,” the minister said, thanking the United Nations, and other partner countries.
Russia and Ukraine signed a landmark deal in Istanbul last month, brokered by Turkey and the United Nations, to open grain and fertilizer exports that have been blocked by the war. This is expected to ease the global food crisis, analysts said.
The Russia-Ukraine Conflict: Implications for Food Security in the Commonwealth (Commonwealth iLibrary)
Food security is essential for economic well-being and maintaining social and political order. The COVID-19 pandemic and associated production and supply chain disruptions, along with the effects of climate change, have triggered an increase in food prices globally. Recently, the Russia–Ukraine conflict and the disruption of supplies from the Black Sea region have increased turbulence in the global grain and edible oils markets, accentuating inflationary pressures on food prices. Besides higher prices for staple foods, sunflower oil exports from Russia and Ukraine have dried up, sending buyers scrambling for alternative sources and driving up prices.
DG Okonjo-Iweala calls for more support for sustainable fisheries, launches new report (WTO)
“At our 12th Ministerial Conference, WTO members adopted a new Agreement on Fisheries Subsidies. The Agreement is the first broadly-focused, binding multilateral agreement on ocean sustainability. It also is the first WTO agreement with environmental sustainability at its core,” DG Okonjo-Iweala said at the event, where she also took the opportunity to urge members to formally accept the Agreement so that it can enter into force.
“The WTO’s new report, ‘Implementing the WTO Agreement on Fisheries Subsidies: Challenges and opportunities for developing and least-developed country members,’ helps set the context for this important conversation,” DG Okonjo-Iweala said, underlining that 65% of USD 5 billion in assistance earmarked for fisheries and the ocean economy between 2010 and 2020 targeted sustainable fisheries according to data from the Organisation for Economic Co-operation and Development (OECD) presented in the report.
DG calls for increased investment on cotton projects, welcomes Afreximbank pledge (WTO)
DG Okonjo-Iweala noted that cotton is a vital crop in over 30 African countries, generating some USD 1.5 billion in export earnings but that the sector had been hit hard by the COVID-19 pandemic. “Policymakers should aim to boost productivity sustainably, strengthen competitiveness and add value to cotton goods” in order to strengthen resilience to future shocks, the Director-General said.
Statement by the OECD Secretary-General on climate finance trends to 2020 (OECD)
Climate finance provided and mobilised by developed countries for climate action in developing countries reached USD 83.3 billion in 2020, according to new OECD analysis. This is a further 4% increase from 2019 and followed a 1% increase from 2018 to 2019. However, it still falls short of the goal for developed countries to provide and mobilise USD 100 billion a year for developing countries by 2020. The increase in 2020 climate finance was primarily driven by a rise in public flows.
Aggregate Trends of Climate Finance Provided and Mobilised by Developed Countries in 2013-2020 is the OECD’s fifth annual assessment of progress towards the UNFCCC goal.
New Net-Zero Tracker Gives Heavy Industries a Platform to Catch Up on Climate Goals (WEF)
The World Economic Forum released today the first edition of a report on the state of the net-zero transition in key industrial sectors, the Net-Zero Industry Tracker 2022. The report highlights the need to fully understand the scope and scale of the challenge for these sectors and identifies a significant gap versus the pace of decarbonization necessary to achieve net-zero goals to limit global warming to 1.5C by 2050. The urgency for industrial decarbonization is reinforced by high energy prices and energy supply chain disruptions.
“While there are efforts under way and climate commitments being made, we currently lack a robust and comprehensive mechanism to understand the pace and direction of the progress of transformation of heavy industries, which account for 30% of global greenhouse gas emissions,” said Roberto Bocca, head of Energy, Materials and Infrastructure, World Economic Forum. “Several industrial sectors and individual companies have set up targets with the aim of reaching net zero emissions. We believe that bringing transparency to closing net-zero gaps and reporting on this progress is critical to achieve these ambitious goals.”
Commonwealth supports new oil and gas producers to cut emissions (The Commonwealth)
Developing countries who are emerging oil and gas producers face complex challenges as the world moves away from fossil fuels to fight the climate crisis. To help them navigate this new reality, the Commonwealth Secretariat, Chatham House and the Natural Resource Governance Institute delivered an interactive virtual training programme titled ‘Minimising Greenhouse Gas (GHG) Emissions from the Petroleum Sector’ from 27 June to 7 July. This was part of a larger discussion series organised by the New Producers Group (NPG) – a joint initiative established by these three partners that brings together a network of over 30 new oil and gas producing countries for peer-to-peer exchanges. The series, called ‘Forging a New Path’, is designed to support the effective management of petroleum resources, including the integration of climate resilient strategies.
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Govt lodges WTO dispute over EU citrus import regulations (Engineering News)
The Permanent Mission of South Africa to the United Nations and other International Organizations has written to Ambassador of the European Union (EU) to the World Trade Organisation (WTO) Joao Aguiar Machado to request consultations with the EU concerning the new regime governing the importation of citrus fruit from South Africa.
"These transgressions have already impacted an estimated 3.2-million cartons of citrus valued at R605-million, with reports of hundreds of containers of South African citrus being detained by authorities in the EU on arrival. Without immediate political intervention, the threat remains that these consignments will be destroyed by EU authorities.
"The local industry is still of the view that the cold treatment prescribed within the new regulations is contrary to scientific evidence, making it an arbitrary and unnecessarily trade restrictive measure and accordingly contravenes international requirements for such phytosanitary trade regulations," the organisation states.
AfCFTA: ActionAid advocates massive investment in agric to spur local consumption (Blueprint Newspapers Limited)
ActionAid Nigeria (AAN) has called for massive investment in the agriculture sector to boost domestic consumption, rural infrastructural development, and export promotion.
According to AAN, this will enable Nigeria to benefit from the African Continental Free Trade Agreement (AfCFTA).
In a paper presentation on State of Agriculture Budget Allocation across the 36 states and the FCT and gaps on ground at National Parliamentary Briefing on the 3rd Biennial Review (BR) Report in Abuja on Thursday, the Food and Agriculture programme coordinator AAN, Azubike Nwokoye also said the federal and state governments need to use the agriculture sector to remove Nigeria from the global list as the poverty capital of the world.
Government and business must increase collaboration in 'new reality' for supply chains (Supply Management)
Kenya: Post-pandemic disruption will require governments to develop local capacity, decentralise manufacturing hubs, cut down on bureaucratic processes and red tape, and collaborate more with the private sector.
“The old theories about business being left alone, government doing their own regulation, supply chain management being left to private sector, quite frankly don’t hold,” said Dr Fred Matiang’i, cabinet secretary for the Ministry of Interior and Coordination of National Government in the Republic of Kenya.
During a panel on global supply chains at the Qatar Economic Forum, Matiang’i warned governments that “remain steeped in bureaucracy” will worsen disruption moving forward. He suggested further decentralisation of manufacturing hubs, so countries are not dependent on a singular region avoiding disruption.
Zimbabwe exports rise 33% (Bulawayo24 News)
Zimbabwe's exports increased by 33% to US$3,5 billion in the first half of this year, from US$2,6 billion during the same period in 2021, driven by an increase in agriculture, mineral and manufactured exports, official data showed.
In his 2022 mid-term review and supplementary budget, Finance and Economic Development minister Mthuli Ncube projected exports to reach US$7,3 billion by year end.
"Merchandise exports and imports increased by 33% and 15% to US$3,5 billion and US$3,7 billion, respectively, during the first half of 2022, compared to the same period in 2021. To year end, exports are expected to reach US$7,3 billion, spurred by increases in mineral receipts benefiting from the mineral commodity price boom, as well as increases in agriculture and manufactured exports," he said.
Agriculture, trade, and technology to intersect at Code Cash Crop 3.0 (Techpoint Africa)
AFEX, Nigeria’s leading commodities market player, is holding the third edition of its Code Cash Crop event themed “The Role of Technology in Disrupting Agriculture Trade Infrastructure” at Oriental Hotel, Victoria Island, Lagos, on Friday, July 30, 2022, starting from 8:00 am through to 4:00 pm.
Code Cash Crop is an integration of technology, finance, and agriculture, sectors that AFEX interacts with and provides solutions for. Using technology and finance in agriculture will lead to innovative solutions that will help solve Africa’s food challenges and facilitate economic growth and poverty alleviation.
The organisers have also brought speakers from various sectors to drive the conversations around the three sectors and how they intersect.
Clearing Agents Seek Withdrawal Of Customs Bill Over AfCFTA Breach (Leadership News)
Nigeria: The National Council of Managing Director of Licensed Customs Agents (NCMDLCA) has urged President Muhammadu Buhari and the minister of Finance, Budget and National Planning, Zainab Ahmed, to order the withdrawal of the Nigeria Customs Service (NCS) draft bill 2022 from the National Assembly, saying it does not reflect the Trade Facilitation Agreement (FTA) and the African Continental Free Trade Area (AFCFTA) doctrines.
The president of NCMDLCA, Lucky Amiwero, said due to the importance of the Customs and Excise Management Act (CEMA) to the economy as an instrument that assists the federal government to formulate proper trade and fiscal policy direction, the draft bill must be withdrawn, reviewed and redrafted to accommodate the shortfalls of international conventions, treaties and protocol missing in the draft.
He said the conflicting 283 clauses in the Nigeria Customs Service bill will hinder trade, fiscal policy, international investment and protection of the international trade community.
African trade and integration
Addis Ababa, 28 July 2022 - The United Nations Economic Commission for Africa (ECA)’s led AfCFTA-anchored Pharmaceutical Initiative held a consultative meeting with Kenya Association of Pharmaceutical Industry (KAPI) on the 22nd July, 2022 at the Serena Hotel in Nairobi, Kenya. The objective of the meeting was to introduce the AfCFTA-Anchored Pharmaceutical Initiative to KAPI as well as define collaborative roadmap between the two entities.
The meeting commenced with the AfCFTA-anchored Pharma Initiative National Consultant for Republic of Kenya, Dr. Edward Kamamia making a presentation in which he highlighted the historic events which led to the formation of the Pharma Initiative and took the meeting through a review of the global and regional framework and models which leveraged on the initiative’s three pillars, namely; Pooled-Procurement, localized Manufacture and Regulatory Quality & Standards of medicines.
The meeting ended with a commitment to support the AfCFTA-anchored Pharma Initiative on advocacy in ensuring quality standards of medicine and strengthening collaborative mechanisms on the 3 pillars of the initiative.
APN says trading on AfCFTA must begin among member states (News Ghana)
The Africa Continental Free Trade Agreement (AfCFTA) Policy Network (APN) has called for trading on to start to keep up the momentum among member countries.
Mr Louis Yaw Afful, Executive Director of APN, and a trade practitioner said even though AfCFTA had the potential to rake in some three trillion dollars for the continent, since it takes off in January 2021, not much trading had taken place under it.
The APN Executive Director, also mentioned that another challenge was customs management and procedures, as party states were supposed to pass their legislative instruments to enforce the agreement, which he noted was however slow.
Future Manufacturing Africa to showcase and unlock opportunities on the continent - RX Africa (Bizcommunity.com)
A new manufacturing platform will provide unprecedented opportunities and access to accelerate the industrialisation of the African continent. Taking place in May 2023, Future Manufacturing Africa Trade Fair & Summit will gather local and international companies to showcase and demonstrate new technologies, machinery, and equipment to enable African industries to invest in to enable them to increase manufacturing output on their home soil.
Future Manufacturing Africa is collocated with the long-running Africa Automation Technology Fair (AATF), the continent’s most comprehensive and focused automation technology platform. Next year’s event from 9–11 May will be the 12th edition of the event that has been running for 25 years.
Egypt-Somalia trade exchange grows 2.6% YoY in 2021 (ZAWYA)
Trade exchange between Egypt and Somalia increased by 2.6% in 2021 to $67.5 million, compared to $65.8 million in 2020, according to a recent press release by the Central Agency for Public Mobilization and Statistics (CAPMAS).
The value of Egyptian exports to Somalia increased by 10.2% year-on-year (YoY) to $66.3 million last year from $60.1 million.
On the other hand, the value of Egypt’s imports from Somalia recorded $1.3 million in 2021, falling by 77.9% YoY from $5.7 million.
Kenya inks import deal with Ethiopia for hydro-power (Kenya Broadcasting Corporation)
Kenya Power has reached a deal for importation of hydro-electric power from Ethiopia under the Kenya-Ethiopia Electricity Highway Project.
The deal involves a transmission inter-connector linking the two nations’ power systems while also creating a pathway for countries within the East African region to trade electricity.
The commercial operations are envisaged to commence this November upon the joint testing and commissioning of the inter-connector.
Job Advert: DEPUTY SECRETARY GENERAL- CUSTOMS, TRADE & MONETARY AFFAIRS (1 post) (ECA)
Grade : D2
Organ : EAC Secretariat
Station : Arusha, Tanzania
The key purpose of this role is to ensure achievement of the EAC’s mission which is to widen and deepen economic, political, social and cultural integration through increased competitiveness, value added production, trade and investments. The Deputy Secretary General will be in charge of matters related to customs, trade and monetary Affairs in line with the Protocols and the Treaty for the Establishment of the East African Community. She/he will deputise and assist the Secretary General and provide strategic leadership for the development of overall strategies and implementation of projects and programs in the sectors in collaboration with the implementing ministries of the Partner States in line with the EAC Development Strategy.
Global economy
Chairs Programme Conference concludes with call for enhanced cooperation with policymakers (World Trade Organization)
The WTO Chairs Programme (WCP) concluded its three-day annual conference on 27 July, wrapping up fruitful discussions on a wide range of trade-related issues, including sustainable trade, outcomes reached at the 12th Ministerial Conference (MC12), future research priorities, training and outreach, and opportunities for collaboration within the WCP network and with policymakers.
From 25 to 27 July, a series of panel discussions and roundtables took place to discuss MC12 outcomes, in particular the decisions on the WTO's response to the COVID-19 crisis, the TRIPS waiver, food security and the Fisheries Subsidies Agreement.
At a dialogue session with WCP Chairs and Academic Advisory Board members, Director General Ngozi Okonjo-Iweala laid out how new research projects could be developed to facilitate implementation of MC12 outcomes. The Director-General suggested that Chairs from countries with COVID-19 vaccine manufacturing capacities explore ways to help their governments foster the supply of vaccines to countries in need. The Chairs also have an important role to play in helping countries bring the Fisheries Subsidies Agreement and other MC12 results into effect and in providing new ideas for negotiators to tackle unsolved issues on overfishing and overstocking, she said.
WTO high-level event examines how international cooperation can tackle illicit trade (World Trade Organization)
Top officials of six global organizations have called for greater coordination among relevant national and international bodies in the fight against illicit trade in medical products, which puts the health and livelihood of people all over the world at risk. Speaking at a high-level roundtable on 27 July held at the Aid for Trade Global Review, they shared perspectives on activities they are undertaking and how they could engage in closer cooperation.
Participants agreed on the need to strengthen public awareness activities, to support developing countries in procuring legitimate medicines and to help them in the fight against illicit trade in medical products.
WTO Director-General Ngozi Okonjo-Iweala outlined her long-standing concerns with illicit trade: “Time and again, we see how illicit trade is threatening people's health and livelihoods, and how it undermines legitimate business activity and abets corruption.”
UK services hamstrung by 'bizarre' neglect in trade policy, lobby group says (City A.M.)
The UK’s services sectors are being hamstrung by political neglect and a lack of attention in trade policy, a top City group warned today.
Nicola Watkinson, Managing Director, International Trade and Investment at industry group The CityUK, said it was “a little bizarre” that the UK services industry still had to fight for visibility and inclusion in trade policy despite making up some 80 per cent of economic output.
“Prioritise trade agreements with those countries that are likely to secure the greatest economic benefits for the UK. Put trade in services at the heart of all of these negotiations,” she said.
India got highest aid for trade from developed countries in 2020 (Business Standard)
India received the highest aid for trade in 2020 at $2.7 billion from developed countries even as the receipts declined during the pandemic year compared to $3.9 billion received in 2019.
The World Trade Organisation-led aid for trade flows is particularly meant for the least developed economies. It consists of official development support to build supply-side capacity and trade-related infrastructure to enable such countries to participate in international trade.
Bangladesh was the second largest recipient of the aid, followed by Egypt, Ethiopia, Kenya, Vietnam, Pakistan, Morocco, Myanmar and Indonesia, among others. Institutions such as the World Bank, European Union Institutions, Asian Development Bank, and developed countries such as Japan, United States, Germany, France are among the top donors for the aid.
Brexit trade war looms for next PM as EU and UK continue to battle over hated deal (Express)
Anand Menon, Professor of European Politics and Foreign Affairs at King's College London, said Brexit was “far from done” as he warned the “already strained UK-EU relations” could only get worse due to disagreements over the hated deal. He issued the warning to Tory leadership contenders Liz Truss and Rishi Sunak continue to battle it out for their place in Number 10.
Professor Menon told them the “most pressing issue” facing them when they get in to power is the Northern Ireland Protocol as the UK continues to threaten to scrap parts of the deal.
“This could prompt a trade war and would worsen already strained UK-EU relations, which are hampering cooperation in areas of mutual benefit such as the Horizon research programme.”
China's foreign trade bucks trend, sets new records (News Ghana)
According to customs statistics, China’s foreign trade of goods jumped 9.4 percent year on year in the first half of this year. The total imports and exports in May and June grew 9.5 percent and 14.3 percent, respectively, reversing the decline in growth in April led by the COVID-19 resurgence. The month-by-month growth signified a V-shaped rebound in China’s foreign trade and has laid a solid foundation for the whole-year performance.
While the growth picks up, the quality of foreign trade is also improving. The proportion of general trade continues expanding, and the trade with major trading partners is on a rise. Besides, foreign trade entities have become more active and there’s a steady growth in the imports and exports of major products. As of June this year, China’s foreign trade had recorded positive growth for eight consecutive quarters.
China-Africa economic trade projects worth 170 million USD signed (News Track)
CHANGSHA- A total of 14 trade and economic cooperation projects and agreements worth nearly 170 million U.S. dollars were inked between China and various African countries on Thursday in central China's Hunan Province.
The deals, covering areas such as regional cooperation, strategic agreement, project financing, investment cooperation and trade procurement, were signed at the Promotion Conference for China (Hunan)-Africa Economic and Trade Cooperation, held in the city of Changsha.
The commerce departments of six Chinese provinces also jointly signed an agreement to advance economic cooperation and trade exchange with African countries at the conference.
Morocco, UK building thriving partnerships in trade, green finance (The North Africa Post)
Morocco and the United Kingdom are building thriving partnerships, including in trade, green finance and education, said the British Minister of State for Foreign Affairs for South and Central Asia, North Africa, the UN and the Commonwealth, Lord Tariq Ahmad.
“Our kingdoms are working together to deliver a shared vision of economies that are innovative and focused on building a sustainable future, resilient to the global challenges we all face,” Lord Ahmad said in a statement issued Thursday at the end of the visit he paid to Morocco July 25 to 27.
The British official praised the leadership of King Mohammed VI and the vision of reform set out in Morocco’s New Development Model, as well as Moroccan efforts to support growth, stability and adaptation to climate change in Africa.
LONDON, July 28, 2022 -- A new trade promotion campaign will target everywhere from Vancouver to Vanuatu as the Commonwealth Games kicks off in Birmingham.
It will spotlight businesses across the Commonwealth, showcasing why the UK is the best place in the world to invest, with our world-class talent, high spending consumer market and business-friendly regulatory landscape. It will also highlight our fantastic exporters to help stimulate global demand for British goods and services.
"This exciting campaign, reaching out to some nations for the first time, will raise awareness of the exciting opportunities to boost two-way trade, drive business and economic growth and support local communities."
UAE and Kenya to begin negotiations on Comprehensive Economic Partnership Agreement (The National)
The UAE and Kenya will soon start negotiations on a Comprehensive Economic Partnership Agreement, the UAE Ministry of Economy said in a statement on Friday.
Dr Thani bin Ahmed Al Zeyoudi, UAE minister of state for foreign trade, and Betty Maina, cabinet secretary, ministry of industrialization, trade and enterprise development, signed a joint statement in Nairobi announcing the intention to begin negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) between the two countries.
Such an agreement will deepen trade and investment ties between Africa and the Middle East and boost the total value of UAE-Kenya non-oil bilateral trade, which grew to $2.3 billion last year.
Morocco, a strategic enclave between America and Africa (Atalayar)
Morocco's dynamic success has not gone unnoticed by the Global Policy Institute, an American think tank based in Washington, which has affirmed that the Kingdom can play an important role as a bridge between the United States and African economies.
In its article 'Business in Africa goes through Morocco', signed by Paolo von Schirach, the think tank's president, it highlights the choice of Morocco to host the US-Africa Business Summit that took place from 19 to 22 this month in Marrakech. Morocco's designation as host was not fortuitous, as the Kingdom has managed to develop and strengthen its political and commercial relations with several countries in the rest of the continent, particularly with sub-Saharan Africa.
For the Global Policy Institute, Morocco is already a "serious partner", capable of attracting US investment and playing an "essential role as a gateway and meeting point between the Americas and the economies of the African continent".
Referring to this US-Africa Business Summit organised by the Moroccan government, the think tank's president reported "real optimism" about the real opportunities for US investment in Africa, along with the partnerships that American companies are beginning to initiate with corporations on the African continent.
RCEP, Cambodia-China FTA give Cambodia larger exporting markets (Xinhua)
PHNOM PENH, July 29 -- The Regional Comprehensive Economic Partnership (RCEP) trade pact and the Cambodia-China Free Trade Agreement (CCFTA) have provided wider exporting markets for Cambodia, officials said on Thursday.
Ly Thuch, president of Cambodia's National Committee for the UN Economic and Social Commission for Asia and the Pacific (UN-ESCAP), said thanks to these free trade agreements, Cambodia's total export to other RCEP member countries totaled 3.28 billion U.S. dollars in the first half of 2022, up 10 percent year-on-year.
"Overall, these positive developments have transformed Cambodia into a more important and potential center for production, businesses and investments in the region, with larger and more competitive exporting markets for investors from all over the world," he said in a speech at the Policy Dialogue on the Economic and Social Survey of Asia and the Pacific 2022.
Dry Bulk Market: Coal Trade a Boon for Bulkers (Hellenic Shipping News Worldwide)
Coal imports of up to 40 million tons, coming into the EU from Russia, need to be replaced from other sources. This could present a significant opportunity for the dry bulk market. In its latest weekly report, shipbroker Intermodal said tha “amid the upcoming ban on Russian coal from the EU, which will be in full effect on August 10th, EU nations have been accelerating their coal imports as a direct reaction to the threat of a reduction in gas supply from Russia. The ban comes at a time when coal trade is already tight. As a result, thermal coal prices have been surging on the back of tight supply and geopolitical tensions”.
According to Intermodal’s Research Analyst, Ms. Chara Georgousi, “considering that the EU was importing approximately 35-40mn tonnes/year from Russia, these cargoes need to be supplied from elsewhere, namely US, Australia, South Africa, and Colombia. US accounts for the largest exporter of thermal coal to Europe at the moment, with exports surging to 11.2mn tonnes during 1H22, noting a 91.6% y-o-y increase. Amid intensified sanctions, US Government is exerting pressure on miners to increase production, therefore, trade flows from US to EU ports (mainly Netherlands and Germany) are expected to increase within 2H22”.
Iranian trade with China on the rise (Al-Monitor)
Iranian state media today reported a significant increase in the Islamic Republic’s trade with China.
Iranian exports to China rose 31% from January to June of 2022, reaching around $4.1 billion. Chinese exports to Iran also increased 16%, amounting to approximately $4.2 billion, the official Islamic Republic News Agency reported. Why it matters: Iran’s relations with the People’s Republic have been improving for some time. Iran is currently seeking to join the so-called BRICS alliance featuring China, Brazil, Russia, India and South Africa.
UK-GCC Trade Deal Could Be A Boon For Renewables (OilPrice.com)
As part of plans to expand and diversify its global trade partners, the GCC has launched negotiations with the UK on a free trade agreement that is expected to bolster the bloc’s economy, help attract investment and provide greater opportunities for local businesses.
The talks, which followed months of exploratory discussions, are focused on securing a free trade agreement that would reduce or remove tariffs on a series of goods and services.
While there is no official timeline for the completion of the deal, UK and GCC policymakers hope to launch the first round of negotiations in the third quarter of this year, with local and international media reporting that both sides are hopeful of securing a deal before the end of 2023.
Kyrgyzstan enterprises gain more opportunities on trade and export to EU market (Times of Central Asia)
BISHKEK — Six trainers were trained in digital presentation skills and facilitation techniques through the Ready4Trade Central Asia (R4TCA) project of the International Trade Center (ITC), funded by the European Union (EU). Kyrgyz enterprises now have the opportunity to learn more easily about international trade rules, the export process, EU market requirements, and quality and compliance standards, the Delegation of the European Union to the Kyrgyz Republic reported.
The essence of the event is to train trainers who come from the faculty of the Kyrgyz Economic University (KEU), which is the institutional partner of the "Support for Inclusive Development through Trade and Digitalization" component of the R4TCA project, in facilitation skills for these digital workshops.
The methodology offered by the International Trade Center is very unique in its nature and in the way it communicates information to students, has been tested in all five Central Asian countries, and has shown to be highly effective, being already well received by entrepreneurs.
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Logistics Performance Index: Nigeria ranks lowest In West Africa — Experts (Tribune Online)
The Managing Director/CEO, Analyst Data Service Ltd, Dr Afolabi Olowo-okere, has stated that Nigeria, in terms of Logistics Performance Index, ranks behind Ghana, Togo, South Africa, Egypt, Republic of Benin and Cameroon with a score of 1.97 percent.
He pointed out that Nigeria’s medium-term plan for the maritime sector recognises the country’s seaports as heavily congested due to the absence of dry ports and multi-modal transport infrastructure, stressing that the inland waterways are grossly under-utilised with only 3000 miles of about 10,000 miles currently navigable.
He said for Nigeria’s port to become the preferred destination in West Africa and Central Africa, and that there is a need to improve security and safety in the sector, leverage technology to improve efficiency and ease of business, and make inland waterways serve as an alternative cheap mode of transportation to decongest the seaports and deliver cargo closer to the hinterland.
SA customs officials strike: Commercial cargo movement improves (The Herald)
The movement of commercial cargo between Zimbabwe and South Africa has gradually improved after some customs officials from the neighbouring country who have been on strike over a pay increase returned to work at the weekend.
However, the larger number is still on strike.
“We would like to assure traders and travellers that we have put various contingency measures in place at land border posts to ensure minimal disruption during the current industrial action at SARS,” said the revenue collector.
Gold Trading Kicks Off on Nigerian Exchange Ahead of Launch (Bloomberg)
A newly licensed Nigerian commodities exchange started trading in gold ahead of its official launch this week, the first time the metal will be offered on a bourse in the West African nation.
The Lagos Commodities and Futures Exchange is licensed by the Securities and Exchange Commission to trade gold with the specification of the London Bullion Market Association’s 99.99% purity, targeting globally acceptable pricing and quality, according to Akinsola Akeredolu-Ale, managing director of the Lagos bourse.
The exchange is scheduled for a formal launch on July 28 and will in addition to gold trade other commodities including cashew, shea butter, paddy rice, maize, soy beans and sorghum, Akeredolu-Ale said in an interview. “The aim is to diversify the asset base of the capital market and improve government revenue sources,” he said.
New report reveals Maseru generates half of Lesotho’s GDP (UNECA)
A new report for the first time reveals that Lesotho’s capital city Maseru, which accounts for only 17 per cent of the country’s population, generates about half of the country’s annual gross domestic product (GDP) – a vital economic well-being indicator.
The report, developed by the Lesotho Bureau of Statistics with the support of the United Nations Economic Commission for Africa (ECA), was validated by Lesotho’s national and local government officials, data specialists, national account experts, development experts and urbanisation practitioners at a workshop in Maseru on 25 July 2022.
The report offers accurate evidence on the economic weight and performance of Maseru and identifies measures that could help unlock its full potential. Findings can support the government in prioritising policy interventions to attract investors, improve competitiveness and strengthen productive economic sectors.
Botswana’s economic output back to pre-pandemic level, IMF says (CGTN Africa)
Botswana is one of the few economies in Sub-Saharan Africa whose output has recovered to its level before the COVID-19 pandemic took hold, the International Monetary fund said on Wednesday.
The lender attributed the positive trend in part to the strong demand for diamonds globally. The IMF also cited Botswana’s strong vaccination efforts against COVID-19 and the country’s “prudent macroeconomic management”.
“The recovery is expected to continue through the medium term, but there is significant uncertainty,” the IMF said in its report on Botswana. “Growth will be supported by higher prices and demand for diamonds, increased copper production, prospects for a good harvest, less COVID-19 mobility restrictions, and more international tourist arrivals.”
Nigeria has the second largest market for cryptocurrencies in Africa in 2022 – Bitget report (Nairametrics)
A new cryptocurrency market report titled, “What Does the Future Hold for Crypto Exchanges,” has revealed that in terms of the cryptocurrency market size in Africa, Nigeria has the second largest market, behind South Africa. The report mentions that South Africans primarily use crypto as an alternative investment, while Nigerians use it mainly for savings.
The report explains that the African continent’s cryptocurrency centralized exchange trading accounts for less than 1% of the spot and derivative trading seen around the world. It went further to rank South Africa as #1 on the continent as a result of the country’s “more advanced financial infrastructure and fiat-to-crypto payment rail.”
In terms of Africa’s future potential in the cryptocurrency space, the report reads, “We expect strong growth in crypto adoption in Africa. However, derivatives may lag given their limited use in traditional markets.”
AfDB, AGF sign a $110 million financing facility with CRDB Bank (IPPmedia)
Tanzania: The African Development Bank (AfDB) signed a $60 million financial package comprising $50 million subordinated debt to support CRDB’s regional expansion efforts and a senior loan of $10 million to support CRDB’s efforts in accelerating access to finance for women SMEs in Tanzania.
The facility is also coupled with $175,000 technical assistance grant through AfDB’s AFAWA Initiative supported by the Women Entrepreneurship Initiative (WeFI) to strengthen CRDB’s capacity to support women entrepreneurs in Tanzania to become more bankable.
Similarly, the African Guarantee Fund (AGF) has renewed its guarantee line to CRDB Bank with $ 50 million.
African trade and integration
DFIs pledge support for African Infrastructure Investment Fund (Engineering News)
British International Investment (BII) and FMO on July 27 made a joint commitment to the African Infrastructure Investment Fund 4 (AIIF4), managed by African Infrastructure Investment Managers (AIIM), aimed at supporting AIIF4 in reaching its $500-million target fund size.
Anchor investor BII – the UK’s development finance institution, has committed $76-million, while FMO – the Dutch entrepreneurial development bank, has committed $40-million to AIIM’s fourth pan-African fund.
As such, the AIIF4 will assist AIIM in building on the successful performance of its predecessor funds by investing across three priority infrastructure subsectors – renewable energy, such as rooftop solar; digital infrastructure, including mobile telecoms towers, data centres and fibre-optic networks; and mobility and logistics, such as ports, roads and other supporting infrastructure.
AfDB woos American businesses to investment opportunities in Africa (BusinessAMLive)
The African Development Bank Group (AfDB) has called on American businesses to invest in the opportunities created by the bank’s $1.5bn African Emergency Food Production Facility, established to curb the impact of the current global food crisis worsened by Russia’s invasion of Ukraine.
Akinwumi Adesina, AfDB president, while speaking in the US-Africa Business Summit held in Marrakech, Morocco, urged American investors to see Africa as a logical investment destination where they can engage in win-win partnerships.
Adesina, who confirmed that U.S. investments were critical for accelerating infrastructure development on the world’s second largest continent by population and size, also gave a strong assurance to the investors that Africa is a secure, competitive and profitable market for investment.
Global economy
WTO members show restraint in trade-restrictive measures despite economic uncertainty (World Trade Organization)
The Director-General’s mid-year report on trade-related developments covering mid-October 2021 to mid-May 2022 shows WTO members continued to exercise restraint in imposing trade restrictions. The report, presented to members on 27 July at a Trade Policy Review Body meeting, looks at the use of trade measures at a time when the world faces severe challenges and economic uncertainty. Speaking at the launch of the report, DG Ngozi Okonjo-Iweala said it is important not to underestimate the risks generated by the COVID-19 pandemic and the impact of the war in Ukraine.
During the review period covered by the report, the estimated trade coverage of the regular (non-COVID-19-related) import-facilitating measures introduced by WTO members (USD 603.2 billion) far exceeded the trade coverage of import-restrictive measures (USD 23.5 billion).
The report highlights that the global economic outlook has deteriorated since February as a result of the war in Ukraine, prompting the WTO to downgrade its forecasts for world trade over the next two years. The WTO, in its latest forecast of 12 April 2022, expects merchandise trade volume growth of 3.0% in 2022, down from 4.7% in the previous forecast from last October.
Heads of multilateral agencies outline central role in addressing multiple crises (World Trade Organization)
The WTO, the International Monetary Fund (IMF), the World Bank, the European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ADB) outlined on 27 July the role they play in supporting sustainable development and helping developing economies respond to the COVID-19 pandemic, the war in Ukraine and climate and energy-related crises. The session held at the Aid for Trade Global Review looked at where Aid for Trade financing is being directed, what it is achieving and how future priorities should balance short-term pressures with longer-term needs.
Heads of the five agencies examined how the multiple crises facing the world are impinging on the trade and development prospects of developing economies, with countries everywhere facing inflationary pressures and high food and energy prices, hitting the poorest people the hardest. These issues are converging at a time when the need to take action on greenhouse gas emissions and to support a just transition to a low-carbon model of growth has never been more pressing, they said.
In her opening remarks, WTO Director-General Ngozi Okonjo-Iweala said: "These institutions, which have a growing role in supporting sustainable development and supplying local public goods, are also at the forefront of addressing trade-related capacity and infrastructure issues, which continue to roll back the economic integration of many developing and least developed countries (LDCs)."
The surge in the dollar is slowing global trade and worsening debt crises around the world, the IMF warns (Business Insider Africa)
The surge in the dollar is adding to the stresses afflicting the global economy, the International Monetary Fund has said, by slowing world trade and piling pressure on indebted developing countries.
The dollar index, which measures the currency against a basket of its peers, has risen around 16% this year as the Federal Reserve has hiked interest rates faster than other major central banks, drawing investor money back towards the US.
Worries about the global economy have also powered the surge, as the dollar is seen as a safe haven at times of stress.
British exporters report stagnating trade as post-Brexit delays blamed (The Guardian)
Britain’s exporters have seen their overseas trade stagnate over the past year despite strong growth in domestic demand for their products and booming export markets, according to a survey.
The British Chambers of Commerce (BCC) said that a survey of 2,600 exporters found a quarter had suffered a fall in exports and another 46% reported no change.
Firms said Brexit was one of the main barriers to exports, after the introduction of customs checks and delays at the border.
UK and Morocco's growing partnership GOV.UK
Minister of State for South and Central Asia, North Africa, UN and the Commonwealth, Lord (Tariq) Ahmad of Wimbledon visited Morocco from 25th to 27th July, following the 300th anniversary of the first bilateral trade treaty with Morocco.
During his visit he met with government Ministers including the Minister for Foreign Affairs Nasser Bourita, Minister for Industry and Commerce Ryad Mezzour, Minister for Higher Education, Scientific Research and Innovation Abdellatif Miraoui and Minister for Energy Transition and Sustainable Development, Leila Benali, as well as the Speaker of Morocco’s House of Representatives, Mr Rachid Talbi Alami. Discussions focused on deepening collaboration between the UK and Morocco on trade, education, climate, clean energy and green growth, as well as on regional and international issues of common interest, including the situation in Libya, and the global implications of the Russia-Ukraine war on food and energy security.
Turkey offers duty relief on 261 tariff lines (The Express Tribune)
Turkey has offered concessions on 261 tariff lines to Pakistan under the Trade in Goods Agreement with the objective of achieving annual bilateral trade value of $5 billion.
The development came in the wake of Prime Minister Shehbaz Sharif’s visit to Turkey about two months ago. Pakistan and Turkey had been in talks for the past several years to ink a trade agreement, but Turkish businessmen were not in favour of the move.
Now, Ankara has offered concessions to Islamabad on 261 tariff lines, which include key items of Pakistan’s export interest from both the agriculture and industrial sectors.
Middle East And Africa Dairy Market To Be Driven By The Growing Dairy Trade Globally During The Forecast Period Of 2021-2026 (This Is Ardee)
The new report by Expert Market Research titled, ‘Middle East and Africa Dairy Market Report and Forecast 2021-2026’, gives an in-depth analysis of the Middle East and Africa dairy market size, share assessing the market based on its segments like Product, and Regional markets among others. The report tracks the latest trends in the industry and studies their impact on the overall market. It also assesses the market dynamics, covering the key demand and price indicators, along with analysing the market based on the SWOT and Porter’s Five Forces models.
The increase in milk exports from important markets in Africa, Central America, Europe, and North America boosted the trade. With the exception of Iran, yoghurt and sour milk are gaining popularity across the region. In the region, whey and whey proteins are also in high demand. The leading regional dairy markets are Saudi Arabia, South Africa, the United Arab Emirates, Egypt, and Iran.
Iran Backs Azerbaijan's Accession To D-8 (Eurasia Review)
The foreign minister of Iran voiced support for the Republic of Azerbaijan’s bid to join the D-8 Organization for Economic Cooperation, saying enlargement of the D-8 and accession of new members would serve as a tool for the realization of its goals.
Hossein Amirabdollahian delivered an address via videoconference to the 20th session of the Council of Ministers of D-8, held in the Bangladeshi capital of Dhaka on Wednesday.
“The Organization should move quickly to accept new members,” he stated, describing economic diplomacy and deepening ties with the neighboring and Muslim countries as two of the priorities in Iran’s foreign policy agenda.
China, Vietnam, and Indonesia among fastest-growing countries for coming decade (Phys.org)
China, Vietnam, Uganda, Indonesia, and India are projected to be among the fastest-growing economies to 2030. That is the conclusion of researchers at the Growth Lab at Harvard University who presented new growth projections in The Atlas of Economic Complexity. The release provides the first detailed look at 2020 trade data, including major disruptions to tourism and transport vehicle exports from the global pandemic. As the effects of the pandemic dissipate, long-term growth is projected to take off between Asia, Eastern Europe, and East Africa. China is expected to be the fastest growing economy per capita, even if the projection finds growth to be slowing from what the country achieved over the past decade. The research finds that countries that have diversified their production into more complex sectors, like Vietnam and China, are those who will experience the fastest growth in the coming decade.
The Growth Lab researchers released new country rankings of the Economic Complexity Index (ECI), which captures the diversity and sophistication of the productive capabilities embedded in the exports of each country. Despite the trade disruption of the pandemic, countries' economic complexity rankings remain remarkably stable. The ECI ranking finds the most complex countries in the world held steady with, in order, Japan, Switzerland, Germany, South Korea, and Singapore at the top. Other notable countries include the United Kingdom at 10th, the United States at 12th, China at 16th, and Italy at 17th. The measure of economic complexity is able to closely explain differences in country income levels. Among the most complex countries, the greatest improvements in the rankings for the decade ending in 2020 have been made by the Philippines (ECI: 30th), China (16th), and South Korea (4th). Those developing economies that have made the greatest strides in improving their complexity include Vietnam (51st), Cambodia (72nd), Laos (89th), and Ethiopia (97th).
85% of planned CIIE exhibition area already booked (SHINE)
Preparations for the upcoming 5th China International Import Expo are proceeding well, with 85 percent of the planned exhibition area already booked. To date, more than 270 Fortune Global 500 enterprises and industry leaders have signed up for the November 5-10 expo. It is noteworthy that of all the Fortune Global 500 enterprises and industry leaders who participated in previous editions of the expo, nearly 90 percent will be in attendance this year, too.
US Trade Rep. to host AGOA ministerial meeting (addisstandard.com)
United States Trade Representative Katherine Tai announced she will host a meeting of sub-Saharan African trade ministers and senior officials on 13 December 2022. The ministerial meeting will occur during the week of the United States-Africa Leaders’ Summit that President Joe Biden and Vice President Kamala Harris announced last week. “The meeting will discuss expanding trade and investment relations and implementation of the African Growth and Opportunity Act (AGOA),” according to a statement from State department.
“The 2022 Africa Growth and Opportunity Act Ministerial Meeting will be a valuable opportunity to re-affirm the United States’ engagement with the continent,” said Ambassador Katherine Tai. “I look forward to welcoming my fellow trade ministers to Washington, D.C. this December for productive and thoughtful discussions on the future of this important relationship.”
The meeting will be the first since since President Biden announced the termination of three sub-Saharan African countries, including Ethiopia from AGOA privileges effective January 1, 2022.
Q1 Trade With Africa Tops $480m (Financial Tribune)
Trade between Iran and African countries stood at 807,180 tons worth $483.56 million in the first quarter of the current fiscal year (March 21-June 21). South Africa with 229,834 tons worth $140.81 million, Nigeria with 129,003 tons worth $80.33 million and Mozambique with 82,462 tons worth $57.2 million were the main trade partners during the period. Data released by the Islamic Republic of Iran Customs Administration show Iran exported 788,028 tons of goods worth $460.29 million to the African continent during the period. Iran’s main export destinations in Africa were South Africa with 229,511 tons worth $137.77 million, Nigeria with 129,003 tons worth $80.33 million and Mozambique with 82,462 tons worth $57.2 million.
Barbados to host first-ever ACTIF2022 (Loop News Barbados)
The Government of Barbados and the African Export-Import Bank (Afreximbank) have announced the first-ever Africa-Caribbean Trade and Investment Forum (ACTIF2022), scheduled to take place in Bridgetown, Barbados, from August 31 to September 3, 2022.
ACTIF2022 will be held under the theme “One People, One Destiny: Uniting and Reimagining Our Future”. The Forum aims to foster the development of strategic partnerships between the business communities in Africa and the Caribbean, to bolster bilateral cooperation and increase engagement in trade, investment, technology transfer, innovation, tourism, culture, and other sectors.
Additionally, ACTIF2022 is expected to contribute to the implementation of the African Continental Free Trade Agreement (AfCFTA) and the Caribbean trade development agenda, further reflecting the deep-rooted ties between Africa and the Caribbean based on their shared history, culture, common