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IMF raises South Africa’s growth outlook for 2022, but says global picture tilted to the downside (BusinessTech)
The International Monetary Fund’s (IMF) latest global economic outlook review sounds the alarm bell for a slowdown in global economic growth – but prospects are more positive for South Africa.
Inflation this year is anticipated to reach 6.6% in advanced economies and 9.5% in emerging market and developing economies—upward revisions of 0.9 and 0.8 percentage points respectively—and is projected to remain elevated longer.
The global economy, still reeling from the pandemic and Russia’s invasion of Ukraine, is facing an increasingly gloomy and uncertain outlook, the IMF said, with many of the downside risks flagged in the group’s April World Economic Outlook beginning to materialise.
GIPC urges business investment in Central Region (Graphic Online)
The Ghana Investment Promotion Centre (GIPC) has urged investors to capitalise on the Central Region's untapped economic potential to grow their companies and create jobs in the region.
It said doing so would help the local economy, provide jobs and speed up the region's socioeconomic growth.
This was made known during the GIPC's Central Regional Sensitisation tour earlier in the month to show traditional leaders and the metropolitan municipal and district assemblies (MMDAs) the importance of making land available for investment.
Steel market embracing need for decarbonisation, says Kumba Iron Ore (Engineering News)
JOHANNESBURG – At a time when steelmakers the world over are taking strong steps to decarbonise steelmaking, Kumba Iron Ore’s high-quality lump and iron (Fe) is highly sought after, which positions the Johannesburg Stock Exchange-listed mining and marketing company well in the global fight against climate change.
Simultaneously, steel demand is expected to increase significantly as a result of the massive global transition to renewable energy.
This is because the steel intensity in renewable power infrastructure is 10 to 30 times more than the steel intensity of fossil-based power infrastructure, making steel a vital energy transition ingredient.
Nigeria: NCS draft bill excludes AfCFTA, trade facilitation agreement, as NCMDLCA seeks withdrawal (Daily Sun)
The President, National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, has petitioned President Muhammadu Buhari and the Minister of Finance, Zainab Ahmed to order the withdrawal of the Nigeria Customs Service (NCS) Draft Bill 2022 from the National Assembly.
This is even as he said that the bill does not reflect the Trade Facilitation Agreement (FTA) and African Continental Free Trade Area (AFCFTA).
He 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 the international conventions, treaties and protocol missing in the draft.
Webb Fontaine Awarded Contract with Benin Government for Implementation of New Customs System in Replacement of ASYCUDA World (PR Newswire)
Webb Fontaine, a leading provider of advanced and innovative trade and Customs services, has announced its Customs Webb solution has been chosen by Benin as their new Customs system, in replacement of ASYCUDA World.
The project strengthens Webb Fontaine's long-standing partnership with Benin Government, who has ambitions to expand and develop into one of the region's most technologically advanced trade environments.
The project continues towards a fully integrated approach to trade, interconnecting all major trade platforms such as the Single Window, the Port Community System, the e-Tracking solution and now through Customs Webb the Customs System. As a central and critical part of the trade environment, it is crucial and urgent for Governments to operate modern and efficient Customs Systems.
President Museveni says Uganda will continue trading with Russia (CGTN Africa)
Ugandan President Yoweri Museveni on Tuesday said his country will continue trading with Russia, noting that the East African nation will not be drawn into making decisions against Moscow based on its ongoing military operation in Ukraine.
Museveni made the remarks at a joint press briefing with visiting Russian Foreign Minister Sergey Lavrov at State House in Entebbe.
“We want to trade with Russia. We want to trade with all countries of the world. We don’t believe in being enemies of somebody’s enemy,” he said.
Ghana: Small and Medium Enterprises rally support to compete in AfCTA (News Ghana)
Small and Medium Enterprises (SMEs) exhibiting at the ongoing Central Regional Trade, Tourism and Investment Fair, have called for support to enable them to participate in the African Continental Free Trade Area (AfCFTA).
Representing about 90 per cent of businesses participating in the Fair, the SMEs in separate interviews with the Ghana News Agency, described the sector as the backbone of Ghana’s economy.
According to the SMEs, the support should focus on innovative trade policies, trade infrastructure, improved capacity, trade information and facilitation, market access for growth and expansion.
Sierra Leone: African Development Fund approves $2 million grant to boost food production (AfdB)
The Board of Directors of the African Development Fund, the concessional window of the African Development Bank Group, has approved a grant of $2 million to boost food production in Sierra Leone.
The program falls under the African Development Bank Group’s $1.5 billion African Emergency Food Production Facility, a response to the global food crisis that resulted from the Russia-Ukraine conflict, which has deepened existing food insecurity in Sierra Leone.
The program will also benefit rice value chain actors and support the government of Sierra Leone to improve the regulatory environment in order to achieve climate-resilient agricultural development.
Tap into EAC market to increase incomes, manufacturers told (The Star Kenya)
Kenyan manufacturers have been challenged to take advantage of the expanded East African Community market to create more jobs and increase incomes. EAC and Regional Development PS Kevit Desai said with the inclusion of the Democratic Republic of Congo, the market size population has hit 350 million with a turnover of $250 billion.
“This market holds endless opportunities to organisations like Capwell to diversify their manufacturing and, most importantly, to achieve what EAC espouses which is value addition and value chains to ensure the wealth reaches every citizen in their respective countries,” Desai said.
Revenue Shortfall: Nigeria's Economy Is Like A 'Truck Powered With Volkswagen Engine'---Prof Ken Ife (The Whistler Nigeria)
The various fiscal and monetary challenges facing the Nigerian economy has made it to become so inefficient and currently performing sub-optimally, according to finance and economic experts.
Specifically, the depreciation of the naira, the huge debt burden, the revenue underperformance and the country’s over reliance on import is seriously having negative impact on the economy.
The Medium-Term Expenditure Framework Report for 2023-2025 showed that gross oil and gas federation revenue for the first four months of the year was projected at N3.12trn but as of April 30, only N1.23trn was realised, representing a mere 39 per cent performance.
Ghanaian, Dutch Businesses to Explore Business Opportunities (Top Africa News)
A statement issued by the organisers in Accra yesterday said, "This year's objective is to bridge the gap between Dutch investors and businesses and Ghanaian businesses as well as provide an opportunity to know more about the changing trends in e-Commerce, digitalisation, data censoring and knowing the latest products and services in the business technology industry."
The statement said representatives of authorities from both countries would have the opportunity to discuss Netherland-Ghana partnerships, trade and investments.
At least 200 investors, companies, and entrepreneurs would have the opportunity to visit The Netherlands to discuss business opportunities. Slated for September 28 to 30, 2022 this year's Netherland-Ghana Business fair; is under the theme: "Our Digital Future: Ghana beyond 2022".
Kenya seeks Bangladeshi investment in agriculture, ICT (The Business Standard)
Director General of Bilateral and Political Affairs of Kenya Amb Moi Lemoshia has invited Bangladeshi entrepreneurs to invest in the agriculture and ICT sector in Kenya, which will give them access to other African countries since Kenya is a member of Common Market for Eastern and Southern Africa (COMESA) and East African Community (EAC).
"Kenya has a warm diplomatic relation with Bangladesh. Now we want to turn it into a good trade relation," said Lemoshia during a meeting with the Dhaka Chamber of Commerce and Industry (DCCI) on Monday.
As the economy of both Bangladesh and Kenya is SME driven, he suggested a collaboration between the two country's SME sectors. He also urged for a strong partnership of private sectors and chamber-to-chamber relations for technology transfer and training.
South Africa: Banking sector continues to progress transformation target, report shows (Engineering News)
Banks continued to meet many of the empowerment and transformation targets set out in the Financial Sector Code (FSC), despite the severe economic contraction of 6.4% experienced in 2020, which reduced opportunities for job creation and inclusive economic growth.
This is according to industry organisation the Banking Association of South Africa’s ‘Transformation in Banking Report 2022’.
The report points out that, until the South African economy recovers from the years of State capture, maladministration, political uncertainty and a lack of urgent economic reforms, sustainable black economic empowerment (BEE) will be hampered.
African trade and integration
The African Development Bank Group and the Secretariat of the African Continental Free Trade Area (AfCFTA) have signed a Protocol of Agreement for an $11.24 million support package to enhance the Secretariat’s effective implementation.
The signing took place on 25 July 2022, on the margins of the ninth meeting of the AfCFTA Council of Ministers responsible for trade, held in Accra, Ghana.
The AfCFTA Secretariat, currently in phase II of its implementation phase, will benefit from this support package, which aims to boost sustainable intra-Africa trade and to augment the number of participating African member states. The funds are intended to move the African trade integration agenda forward.
AfCFTA secretariat commences pilot trading with seven countries (Guardian Nigeria)
Seven countries, including Rwanda, Cameroun, Egypt, Ghana, Kenya, Mauritius and Tanzania have been selected among countries to start trading under the African Continental Free Trade Area (AfCFTA) framework in a pilot phase.
The move seeks to test the environmental, legal and trade policy basis for intra-African trade, according to the AfCFTA secretariat.
According to the AfCFTA Secretariat, the initiative seeks to demonstrate that AfCFTA is functioning and send a political message to countries that are yet to submit their provisional schedules of tariff concessions in accordance with agreed modalities.
Africa’s top renewable firm may raise $4bn after takeover (Engineering News)
Africa Finance Corporation (AFC) and Egypt’s Infinity Group plan to raise as much as $4-billion to double the size of a recently acquired business that’s already Africa’s biggest renewable power company.
The two firms agreed to buy Lekela Power last week and are seeking between $2.5-billion and $4-billion from capital markets over the next four years, Samaila Zubairu, AFC’s chief executive officer and president, said in an interview.
The duo are looking to take advantage of a drive by governments to increase access to electricity in Africa, the world’s poorest continent, through the provision of renewable energy from abundant solar and wind resources. Infrastructure-investment specialist AFC, based in Nigeria, and Infinity are buying Lekela from a group led by Actis LLP in a transaction valued at $1.5-billion.
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 meeting accepted the proposal of Afreximbank and ATIA to be designated as Specialized Agencies of the African Union. 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 $9.4bln in Africa's private sector development (ZAWYA)
US-based International Finance Corporation (IFC) has provided $9.4 billion in financing to 36 African countries between July 1, 2021, and July 30, 2022, to develop regional pharmaceutical manufacturing, boost intra-Africa trade and strengthen food security, the fund said in a statement. The investments include $3 billion in trade financing, $2.1 billion for green transition and $861.7 million to increase digital connectivity. In addition, the fund provided $603 million in agriculture financing to strengthen food security. Financing across Africa included short-term finance ($3 billion) and mobilisation ($2.6 billion), with 49 percent of the funds going to low-income and fragile and conflict-affected states.
PEBEC to boost Nigeria-Botswana trade, investment drive (Daily Trust)
The Presidential Enabling Business Environment Council (PEBEC) has said it will work with the Republic of Botswana, to create a favourable business climate for the ease of doing business for more trade investment activities in Nigeria.
The Special Adviser to the President on Ease of Doing Business (EoDB), Dr Jumoke Oduwole, stated this on Tuesday, during a virtual trade promotion meeting with private and public business owners in Nigeria and Botswana.
“We have states that are doing incredibly well in attracting and poaching private sector manufacturers. Companies in Botswana would do well to just look at all the companies here and see how we can collaborate particularly as we charge for the African Continental Free Trade Area (AfCFTA),” Oduwole said.
Verify Engineering eyes export market (The Herald)
Technology development agency Verify Engineering, whose medical oxygen plant was opened less than a year ago by President Mnangagwa, is not just supplying Zimbabwean hospitals but has already won contracts in Mozambique, is in advanced negotiations in Botswana and is targeting Zambia and Malawi.
In an interview at the plant in Feruka near Mutare recently, Verify Engineering CEO Engineer Pedzisai Tapfumaneyi said the plant was meeting Zimbabwean requirements and was now pushing exports. “We have started registering our products with organs that guide international trade like Comesa and Sadc and we are also riding on the bilateral agreements which have been done with Zimbabwe,” he said.
Envoy: South Africa, Nigeria should collaborate for effective implementation of AfCFTA (TheCable)
Thami Mseleku, South Africa’s high commissioner to Nigeria, has called for a stronger collaboration between the two countries for the effective implementation of the African Continental Free Trade Area (AfCFTA) agreement.
The high commissioner said collaboration between South Africa and Nigeria would go a long way to facilitate the acceleration of development on the continent and would also enhance the implementation of AfCFTA.
“At the moment the main issue for us in Africa is to make the Africa Free Trade agreement work in practice, not just on paper, and for that to happen, the leading economies of Africa should collaborate,” he said.
Africa urged to end reliance on food and pharmaceutical imports (SABC News)
The conflict between Russia and Ukraine has worsened commodity price increases. As a result, farmers in Africa face serious fertilizer shortages. Plans are now afoot to avert a famine in parts of Africa. The African Development Bank (AfDB) approved a $1.5 billion financing facility for emergency food production, with the aim of averting a looming food crisis. AfDB president Akinwumi Adesina told Reuters, “Africa should not allow itself to be vulnerable in excessively depending on others, whether it is for vaccines or whether it is for food.”
Angola, Egypt Strengthen Bilateral Cooperation (Energy Capital & Power)
Angola is pursuing improved cooperation with Egypt as the country looks at strengthening trade and investment within the energy, industry and commercial sub-sectors.
Leveraging Egypt’s expertise, particularly within oil, gas, renewable energy and industrial engineering, the southern African country has prioritized foreign investment, intra-African trade and economic diversification. Speaking during the opening of an economic forum between the two countries this month, Angola’s ambassador to Egypt, Nelson Manuel Cosme, emphasized that the country is officially open to foreign investment.
Logistics, fintech combine to address Africa's transport challenges (Creamer Media's Engineering News)
Financial institution Standard Bank has attributed the success of its recent direct minority equity investment into technology-enabled logistics solution Tripplo to its ability as a large, established corporate to work effectively with small, agile start-ups. The bank says this is the key to unlocking value chains, particularly among tech start-ups. Standard Bank says big corporations partnering with start-ups was an untested and undeveloped space, with few models having been developed to date and few examples of successful collaborations.
Tanzania joins Kenya, Uganda tax squeeze on gamblers’ winnings (The East African)
Tanzania has this month introduced a gaming tax on the amount or value of winnings through casinos and sports betting, tightening the noose on gamblers already squeezed by levies in neighbouring Kenya and Uganda.
In changes to its Gaming Act, Tanzania said levies of 12 percent and 10 percent are now applicable on the amount or value of all winnings in casinos and sports betting, respectively joining its East Africa Community partners Kenya and Uganda, which have both already gone hard on gamblers with punitive taxes to discourage the addictive habit.
The move by Tanzania solidifies a trend in which EAC countries are cracking down on gambling addiction through punitive taxation and other regulatory measures.
Global economy
Global Economic Growth Slows Amid Gloomy and More Uncertain Outlook (IMF)
The global economy, still reeling from the pandemic and Russia’s invasion of Ukraine, is facing an increasingly gloomy and uncertain outlook. Many of the downside risks flagged in our April World Economic Outlook have begun to materialize.
Higher-than-expected inflation, especially in the United States and major European economies, is triggering a tightening of global financial conditions. China’s slowdown has been worse than anticipated amid COVID-19 outbreaks and lockdowns, and there have been further negative spillovers from the war in Ukraine. As a result, global output contracted in the second quarter of this year.
Under our baseline forecast, growth slows from last year’s 6.1 percent to 3.2 percent this year and 2.9 percent next year, downgrades of 0.4 and 0.7 percentage points from April. This reflects stalling growth in the world’s three largest economies—the United States, China and the euro area—with important consequences for the global outlook.
WTO chief calls on members to work on MC12 outcomes to respond to global trade challenges (Institute of Export)
The World Trade Organisation (WTO) needs to keep building on its successes and guard against complacency following a historic June meeting, according to its director general.
Speaking at a meeting of the General Council, the highest decision-making body of the WTO, Ngozi Okonjo-Iweala this week called on the organisation’s members to build on the achievements from the 12th Ministerial Conference (MC12), held in Geneva in June 2022. She also urged members to step up efforts so that the organisation continues to respond to the challenges facing the global trading system.
The Institute of Export & International Trade attended MC12 and its director general, Marco Forgione, echoed the WTO chief's clarion call. “The outcomes of MC12 were hard-won and it is vital that we continue to build upon these reforms without losing momentum,” he said.
Dubai forms higher committee for future technology and digital economy (The National)
Dubai has formed a higher committee for future technology and digital economy as the emirate continues to boost efforts to establish itself as a global hub for the future economy. The goal of the new body is “to promote Dubai's supremacy in the digital economy globally”, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, said in a tweet on Tuesday. “We are working as a team to enhance Dubai’s position as a global birthplace and research laboratory for future technologies and one of the world’s top 10 metaverse economies, in line with the Dubai Metaverse Strategy,” Sheikh Hamdan, who will be chairman of the committee, said.
Policymakers, businesses stress D-8 PTA implementation (newagebd.net)
Policymakers and business leaders on Tuesday emphasised the implementation of a preferential trade agreement the member countries of the Developing-8 (D-8) signed to facilitate trade and investments among the eight countries.
The D-8, an economic bloc for development cooperation among Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey, was established around the concept of cooperation among major Muslim developing countries across South Asia, Southeast Asia, Europe and Africa.
At the inaugural ceremony of the D8 Chambers of Commerce and Industry Business Forum and Expo 2022 held at the Sonargaon Hotel in the capital Dhaka on Tuesday, policymakers and business leaders said that the D-8 countries should have a consensus on enhanced cooperation to overcome the present global economic crises caused by the Covid pandemic and the Russia-Ukraine war.
UN and World Economic Forum Behind Global 'War on Farmers' (The Epoch Times)
The escalating regulatory attack on agricultural producers from Holland and the United States to Sri Lanka and beyond is closely tied to the United Nations’ “Agenda 2030” Sustainable Development Goals and the U.N.’s partners at the World Economic Forum (WEF), numerous experts told The Epoch Times.
Indeed, several of the U.N.’s 17 Sustainable Development Goals (SDGs) are directly implicated in policies that are squeezing farmers, ranchers, and food supplies around the world.
If left unchecked, multiple experts said, the U.N.-backed sustainability policies on agriculture and food production would lead to economic devastation, shortages of critical goods, widespread famine, and a dramatic loss of individual freedoms.
Lavrov Meets Arab League Leaders In Egypt, Engages In African Tour (Russia Briefing)
Sergei Lavrov, Russia’s Foreign Minister, has been in Africa discussing food and fertilizer supplies amongst regional concerns over supply chains impacted by the Ukraine conflict. He has visited Egypt, and the Democratic Republic of Congo, with Ethiopia and Uganda to follow on a trip notable because Russia has made commitments to Africa to discuss these issues while the EU nations have not.
Bilateral trade between Russia and Egypt has been growing, reaching US$4.7 billion in 2021. An EAEU trade agreement would push that far higher and also allow Egypt easier trade with fellow Islamic nations Kazakhstan and Kyrgyzstan, about to become far more accessible via the INSTC routes through Iran.
While in Cairo, Lavrov met with Arab League Secretary General Ahmed Aboul Gheit, and reiterated mutual interest in invigorating business ties. The Arab League includes Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen.
Dr. Peter Mathuki EAC Secretary General To Be Keynote Speaker Of EABN 17th Annual Trade & Investment (EIN News)
The East Africa Business Network (EABN) is proud to announce the Honorable Dr. Peter Mutuku Mathuki as the Keynote speaker at the 17th Annual EABN Investment & Trade Conference. “We are extremely honored to welcome Dr. Mathuki to the United States and to this year’s annual event” says the EABN’s Founder, Benson Kioko Kasue. “This is our BreakOut year” says Kasue, “we encourage everyone interested to register today and join us as we celebrate the future of business trade, investment and collaborations, September 29th – October 1st 2022 at the DFW Sheraton in Irving, Texas.
Egypt-Serbia bilateral trade nears $80mln in 2021 (ZAWYA)
The value of the trade exchange between Egypt and Serbia amounted to $79.70 million in 2021, Egypt's Minister of Trade and Industry, Nevine Gamea, announced.
Egypt’s exports to Serbia reached $42.40 million last year, while the Arab Republic imported goods worth $37.40 million from the European country. Moreover, the minister pointed out that items of trade exchange between the two countries included phosphates, vegetables, fruits, plastics, fertilisers, tobacco, machinery, and electrical appliances.
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Local news
Industry calls for renewal of poultry tariffs (Engineering News)
The biggest threat to South Africa’s poultry industry is “unfair trade practices from countries like Brazil, Ireland, Spain and Denmark which dump their product on South African shores”, industry organisation the South African Poultry Association broiler organisation GM Izaak Breitenbach says. While South Africa’s International Trade Administration Commission (Itac) considers the imposition for five years of anti-dumping duties against these countries, provisional anti-dumping duties were in force from December 2021 to June 14. These temporary duties have expired and have not so far been renewed, he notes.
“South Africa is currently open to predatory trade from other countries, and the progress that’s been made to achieve the objectives of the Poultry Sector Master Plan are under threat.
Harness local raw materials to make unique products for export, SMEs urged (NewZimbabwe.com)
MICRO as well as small and medium enterprises (MSMEs) have been called upon to make use of cheap locally available raw materials to manufacture unique products for export markets. Innovators must also register trademarks and patents to protect their ingenuity, as well as operate businesses legally and pay taxes. This was said by Professor Marian Tukuta, Chinhoyi University of Technology (CUT) dean of Business Sciences and Entrepreneurship during the inaugural Hurungwe Chamber of SMEs Expo, which ended at the weekend. “There are lots of raw materials at our disposal, especially for those in the arts and crafts sector who can use pods, seeds and other natural elements to make unique jewellery for export,” said Tukuta.
Zimbabwe misses out on G7 stimulus package (Bulawayo24 News)
Zimbabwe missed out on a G7-backed multi-billion-dollar stimulus package designed to help countries of the global South weather economic shocks caused by the Covid-19 pandemic. The reason for the country’s exclusion is the failure to pay arrears to international financial institutions (IFIs), Finance minister Mthuli Ncube has said. The Covid-19 pandemic has precipitated an unprecedented economic crisis worldwide, with disastrous social consequences. After 25 years of continuous growth, Africa was severely hit and suffered recession in 2020.
“Zimbabwe cannot adequately respond to the Covid-19 pandemic in a way that protects the vulnerable and addresses inequality without arrears clearance, debt relief and restructuring,” said Ncube said in the latest Arrears, Debt Relief and Restructuring Strategy availed to The NewsHawks.
Kenya slashes imports of sugar by half in June 2022 (Business Daily)
Kenya cut sugar imports by nearly half in June when compared with the previous month as sugarcane production jumped 11 per cent in the review period. Data from the Sugar Directorate indicates the imports were slashed by 49 per cent to 17,231 in the review period, down from 33,650 a month earlier. The regulator says sugarcane production jumped 11.3 per cent to 70,376 tonnes, the highest to have been recorded since January. An increase in production has seen the prices of the commodity remain low in the market with a kilogramme going for Sh128 down from Sh129 in May on average. Retailers have since April maintained the price of two kilogramme packet at an average of Sh239.
Kenya exports first miraa batch to Somalia (Capital Business)
Kenya is set to export the first batch of miraa to Somalia on Sunday, the Agriculture and Food Authority (AFA) has said. The authority said the resumption of exports followed efforts by the Ministry of Agriculture. According to the agency mandated to promote exports from Kenya, 22 of the traders that have been approved are set to receive their export licenses. The move follows reopening of the Kenya-Somalia border after talks between President Uhuru Kenyatta and his Somalian counterpart Hassan Sheikh Mohamud on July 16.
Former Somali President Mohammed Farmaajo suspended Miraa imports from Kenya two years ago citing COVID-19 restrictions but the suspension was never lifted as diplomatic issues kicked in. The ban led to a loss of more than 50 tonnes of Kenyan khat valued at more than Sh20 million a day. According to the Ministry of Finance, in 2021, the import of Miraa contributed Sh1.3 billion in tax to the country’s revenue.
Tanzania bans day-old chicks imports, again (The East African)
Tanzania has imposed a total ban on the importation of day-old chicks effective next week as it seeks to protect its local hatcheries and limit the inflow of substandard chicks. The ban, which takes effect on July 30, aims to protect the local poultry market, the Ministry of Livestock and Fisheries said in a statement on Monday. Deputy Minister for Livestock and Fisheries Abdallah Ulega said the government would no longer issue import permits on chicken from Saturday. This was after a meeting with poultry business executives in the capital Dodoma. The government, Mr Ulega said, is currently collecting poultry industry data to ascertain the demand for day-old chicks.
Kenya, Tanzania struggle to run shipping lines (The East African)
Plans to revive national shipping lines in East African ports are facing usual delays over lack of capacity to compete internationally. Kenya and Tanzania recently formed shipping lines, but are struggling to establish themselves without own vessels. Tanzania’s bid to sell its disused vessels has been a struggle, with few people coming forth to buy, and leaving it with an unwanted burden of storage.
As a result of increasing operating costs, Zanzibar Shipping Corporation, Tanzania’s shipping line is auctioning three of its vessels, leaving it with none of its own. Zanzibar Shipping Corporation, in May this year, floated a tender to dispose of three public vessels MV Maendeleo, MT Ukombozi and MV Mapinduzi 1. Those vessels are still unsold. According to documents, the assets are being disposed of through the international competitive bidding procedures specified in the public procurement and disposal of public assets.
Dar port strengthens regional market share (Dailynews)
Significant expansion and improvement of efficiency at Tanzania’s principal port of Dar es Salaam has enabled it to offer faster and cost-effective trade and transport solutions compared to other seaports in the region, a new report by GBS Africa has shown. According to the dossier by the advisory services firm, Dar es Salaam Port is becoming a regional transshipment hub for exports and imports for both Tanzania and its land-linked countries in the East African Community (EAC) and Southern African Development Community (SADC). “Land-linked countries like the Democratic Republic of Congo (DRC), Malawi, Uganda, Zambia, Rwanda, and Zimbabwe are increasingly opting for Dar es Salaam Port,” reads part of the report. The report mentioned some of the products which are transported through the harbour as metals like copper as well as agricultural produce such as tea, coffee, tobacco, oilseeds, cotton, sisal, and cashew nuts.
SON Secures FG’s Approval To Return To Ports (Leadership)
The minister of State for Industry, Trade and Investment, Ambassador. Mariam Katagum, applauded the recent approval secured by the Standards Organisation of Nigeria (SON) to return to the ports with a view to collaborating with the Nigerian Customs Service (NCS) to tackle the menace of substandard at all entry points in Nigeria. She also reaffirmed his ministry’s commitment to supporting SON in its bid to discharge its mandate. Katagum disclosed this at the 9th African Day of Standardisation 2022 organised by SON and the African Organisation for Standardisation (ARSO) themed “Promoting the African pharmaceutical and medical devices industries through Standardisation” in Lagos.
Shippers’ Council launches manual for inland dry ports in Kano (Daily Trust)
The Nigerian Shippers’ Council (NSC) has launched its operational manual for inland dry ports to promote efficient transportation, enhance efficiency at the ports and engender trade facilitation. Speaking at the official launch in Kano Friday, the executive secretary/chief executive officer of the Council, Emmanuel L. Jime, said the manual was produced to articulate the step-by-step procedures for receiving, storing, handling and delivery of cargoes, as well as highlighting the operations, responsibilities of agencies and timelines for discharging such tasks. He said the operational manual would also be launched in Port Harcourt and Lagos at later dates to bring stakeholders in other regions in the country on board the reform, adding that immediately the process is concluded, the operators and regulators would be compelled to abide by the operational processes as contained in the manual.
Vice President Bawumia Cuts Sod for First Inland Marine Port in Northern Ghana as Part of the Trans-Volta Logistics Corridor (African Business)
The Vice President, Dr Mahamudu Bawumia, has cut the sod for work to begin on the construction of the first Inland marine port in the northern parts of Ghana and an accompanying Industrial Park at Debre in the Savannah Region. The multi modal transport corridor, known as the Trans-Volta Logistics Corridor, is being undertaken by LMI Holdings and involves the development of a system to transport containers and bulk cargo from the Port of Tema to Burkina Faso and other landlocked countries via the Volta Lake
“Easing the congestion of clearing goods from Tema will be one of the main objectives for this port and industrial park. Using the Volta Lake, vessels will transport goods and containers in transit to and from the Tema Port. These containers will be moved by rail to Akwamu-Korankye (Eastern region) and then loaded onto barges to the Debre Inland Port. In Debre, operating at its fullest capacity like Tema with all the attendant facilities, containers will be offloaded and put on trucks to continue their journey further into the sub region. All services such as customs, transits clearances will be provided as pertains to any international port.
Lack of economic diversification hindering Nigeria’s progress – Don (Punch Newspaper)
The Senior Special Adviser to the President on Industrialisation, African Development Bank, Prof. Banji Oyelaran-Oyeyinka, has said Nigeria is backward because it did not achieve economic diversification. Speaking at the 8th Edition of the Nigerian Society of Engineers’ Annual Distinguished Lecture, Oyeyinka said the country required leaders who were not only committed to ensuring high-performing public sector institutions and organisations but those who seek to transform society through both vision and action. His lecture was titled, ‘Nigeria’s development reversal: Halting descent into industrial Backwardness.’ Oyeyinka explained that Nigeria was poor because the country had experienced not only weak industrial growth but also de-industrialisation.
Mpango pushes for carbon trade (Dailynews)
Vice-President Dr Philip Mpango has directed the State Ministry (Union Affairs and Environment to work on shortfalls in the policy that administers carbon trade in the country so that the nation can benefit from the business. He issued the directives on Saturday in Tanganyika District, Katavi region when handing over a dummy cheque worth 2.3bn/- that has been earned by the district council and eight villages through carbon trade. Dr Mpango also instructed the ministry to embark on public sensitisation programmes that will create awareness on opportunities that are being brightened by carbon business for individual and national development.
He moreover instructed the Ministry of Natural Resources and Tourism in collaboration with the regional authorities to take legal measures against individuals engaging in malpractices of cutting down trees and burning the forests. The ministry should properly enforce laws that protect environment to reduce effects that are brought by environmental degradation, said Dr Mpango, asking the Katavi region authorities to conduct the environmental assessment as well as provide public education to members of the community.
Kenya ranked top in manufacturing vaccine (Business Daily)
Local vaccine production can earn Kenya billions of shillings each year in additional investments, savings and revenue, the Lancet medical journal says. In a newly published study released recently, the journal has ranked Kenya a top candidate for vaccine manufacturing globally ahead of India and South Africa citing its strategic advantages in traditional research capacity as well as distribution logistics.
“New products developed and manufactured in Kenya would benefit all 21 countries in the Common Market for Eastern and Southern Africa (Comesa),” said Lancet in the study backed by American private university Duke University and the Bill & Melinda Gates Foundation. “In Kenya, each dollar invested by the government would return $2·51.”The study by the medical journal assessed the case for investing in clinical trials and manufacturing capacity for three middle-income countries including India, Kenya, and South Africa. “We show that India, Kenya, and South Africa can generate a substantial return on investment while averting millions of deaths,” says the study.
Museveni: Electric vehicles will help counter oil supply shocks (The East African)
Amidst the galloping fuel prices, Uganda President Museveni took to national TV on Wednesday to push for electric cars and railways as a long term solution to crude oil supply shocks. “This is the answer. The correct way is to start moving away from petrol to electric cars and we have already started,” President Museveni said, rejecting fuel subsidies that are suggested in some quarters to lower costs.
Earlier on the same day, Dr Joseph Muvawala, the executive director of the National Planning Authority (NPA), mooted a plan for direct importation of crude oil from the producing countries as a short term measure, a development that would eliminate Kenyan oil marketers that hold contracts to buy petroleum product for refining and supply to the wider Eastern Africa. This, he argued, would result in prices at the pump dropping by 15 to 20 percent.
However, industry players say eliminating companies that control oil imports and obtaining slots to refine crude at the Mombasa refinery is a complex process for landlocked Uganda to navigate in the short term.
Democratic Republic of the Congo’s Growth Among Highest in Region Amid Significant Challenges (IMF)
According to a recently completed annual assessment by IMF staff, growth in the Democratic Republic of the Congo (DRC) sharply rebounded from 1.7 percent in 2020 to an estimated 6.2 percent in 2021, well above the 4.5 percent rate in sub-Saharan Africa. The strong recovery was driven by the country’s mining and services sector performance.
Under a Fund-supported program, the authorities have adopted policies that have helped moderate inflation and stabilize the exchange rate, while commodity prices have supported higher exports, revenues, and international reserves. The war in Ukraine has led to an increase in inflation, raising food insecurity risks, but the outlook remains favorable with support from elevated commodity prices.
Decades of war, poor governance, and underinvestment, however, have left the country with high poverty rates, very low access to basic services and one of the largest infrastructure gaps in the world.
Nigeria, South Africa To Deepen Ties In Manufacturing, Film Industry (Leadership)
The Nigerian government and South Africa are engaging to improve their collaboration in the manufacturing sector under the platform of the African Continental Free Trade Agreement (AfCFTA) and also to enhance the film industry in both countries. The High Commissioner of South Africa to Nigeria, Thami Nseleku, made this known in an interview with reporters after a live stage play entitled ‘Philomena’ in Abuja on Sunday night, stressing that the script is dealing with very serious issues in the society.
African trade and integration
AfCFTA Secretariat via Twitter:
The AfCFTA Website, the Rules of Original Manual and the e-Tariff book have officially been launched at the 9th Meeting of the AfCFTA Council of Ministers on 26 July 2022. These tools are key for Member States to begin trading.
See the AfCFTA Operational Instruments launch video
AfCFTA Secretariat gets $11m grant to enhance effective implementation (The New Times)
The Board of Directors of the African Development Fund has approved an $11.02 million support package to the Permanent Secretariat of the African Continental Free Trade Area (AfCFTA). The AfCFTA Secretariat opened its doors in Accra, Ghana, on August 17, 2020, with initial support of $5 million to set up the Secretariat, the programs, and the tools and to raise stakeholder awareness. Prudence Sebahizi, the chief technical adviser on AfCFTA, told Doing Business that the Bank’s latest support comes along other financial supports from member states and other partners to strengthen AfCFTA implementation.
“The funding is mainly aimed at strengthening AfCFTA institutions through technical assistance and capacity building. However, more support is required to fund private sector projects and member states’ programs,” Sebahizi said. “The private sector with benefit through capacity building programs and technical assistance. In addition, studies will be conducted to identify market opportunities for businesses.”
Africa’s free trade area offers promise for cities – but only if there’s investment (The Conversation Africa)
The African Continental Free Trade Area came into operation on 1 January 2021. This is a considerable achievement. The free trade area is now the world’s single largest market for goods and services, when measured by number of countries, after the World Trade Organisation. It is also the largest in terms of geographic area and population size.
Less well understood, however, is the fact that for the agreement to fulfil its promises, the continent’s cities are key. They are hubs for production and consumption, and will become significantly more so. But their current set-up, lacking the necessary infrastructure and services, means most of Africa’s cities are not yet ready to benefit from and support the free trade area. This will require substantially greater investments in the continent’s cities. This link between urbanisation and trade is analysed in the United Nations Economic Commission for Africa’s recently launched publication, Cities: Gateways for Africa’s Regional Economic Integration.
Steps Towards Establishing an Electronic Single Window System (COMESA)
The Electronic Single Window System (eSW) is one of the key trade and transport facilitation instruments prioritized by most of the COMESA Member States to improve the ease of doing business environment and to enhance intra-regional trade in region. In 2017, the COMESA Council of Ministers decided that Member States should adopt a harmonized and standard data connectivity platform in the form of electronic single windows (eSWS) among government agencies and private stakeholders aimed at improving the intra-regional trade and investment environment at national and regional levels.
On 18 – 21 July 2022 in Addis Ababa, Ethiopia the TWG conducted its first meeting to review various reports that have been prepared towards the development of the eSW system. Among them were Situational Assessment Study Report on Implementation of the eSW, the Draft Legal Framework and the Draft Strategy for Development and Implementation of the eSW. The development of eSW system is one of the instruments under the COMESA Digital Free Trade Area Action Plan. It includes developing and implementing the system at national and regional levels. In this regard, the project activities have been incorporated as part of the Result Area 3 of the COMESA Trade Facilitation Programme funded under the 11th European Development Fund.
The meeting agreed that political will and high-level leadership direction and financial support together with cooperation of stakeholders are some of the key factors for the eSW system to succeed.
In response to a series of shocks facing countries in the Middle East and North Africa (MENA), , which ended June 30. These investments, together with strategic and reform-oriented advisory and analytical support, are helping people across the region as they mitigate the impacts of the war in Ukraine on food and energy prices, continue to respond to the impacts of the COVID-19 pandemic, and build resilience to climate and other shocks, notably in the fragile and conflict-affected countries.
“Overlapping crises, including the war in Ukraine and its impacts on food and energy prices, have further burdened the poorest and most vulnerable in the region,” said Ferid Belhaj, World Bank Vice President for the Middle East and North Africa. “Food price inflation is a major challenge. As many as 23 million people in the MENA region are at risk of falling into deeper poverty. The World Bank is committed to doing even more to help the people and the countries in MENA as they continue to strengthen food security, respond assertively and equitably to the COVID-19 pandemic, and build resilience against a range of other shocks that threaten to roll back hard-won progress.”
Improved statistics key to unlocking the development potential of migration conclude African experts (UNECA)
The urgency of improving data and statistics to capture the benefits of migration for Africa’s prosperity and resilience was underscored at an Expert Group Meeting on migration statistics, convened by the United Nations Economic Commission for Africa (ECA).
The meeting was informed by a background paper by ECA, entitled ‘towards a coordinated mechanism for collecting and utilisation of accurate and disaggregated migration data for evidence-based policies in Africa’. The paper unpacks migration patterns, progress and practices and pathways in Africa for the Global Compact for Safe, orderly and Regular Migration’s implementation, involving all stakeholders.
Global economy
A world in crisis needs both trade and aid (UNCTAD)
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.
Black Sea grain exports deal ‘a beacon of hope’ amid Ukraine war – Guterres (UNCTAD)
An “unprecedented agreement” on the resumption of Ukrainian grain exports via the Black Sea amid the ongoing war is “a beacon of hope” in a world that desperately needs it, UN Secretary-General António Guterres said at the signing ceremony in Istanbul, Türkiye, on 22 July. The UN plan, which also paves the way for Russian grain and fertilizer to reach global markets, will help to stabilize spiralling food prices worldwide and stave off famine, affecting millions. Russian and Ukrainian Ministers signed the Black Sea Grain Initiative, facing each other at opposite ends of the table, while the Secretary-General and Turkish President Recep Tayyip Erdogan sat in the centre.
Oxfam reaction to Ukraine and Russia’s historic grain deal | Oxfam International
Russian foreign minister says there is ‘no obstacle’ to grain deal (Anadolu Agency)
Russian Foreign Minister Sergey Lavrov said Monday there is “no obstacle” to the implementation of a UN-Türkiye brokered grain export deal between Russia and Ukraine. His remarks came after Russian missiles struck Ukraine’s key Black Sea port of Odessa on Saturday in an attack that UN Secretary-General Antonio Guterres “unequivocally” condemned.EU foreign policy chief Josep Borrell said striking a target crucial for grain exports a day after the deal was signed in Istanbul was particularly reprehensible and demonstrated Russia’s total disregard for international law and commitments. But speaking at a press conference in the Republic of Congo after a meeting with President Denis Sassou N’Guesso, Lavrov said the strikes at Odesa “should not affect” grain exports as they targeted “depots of arms and ammunition supplied to Kyiv by the West.”
Europe’s dash for gas means blackouts for the Global South (EURACTIV)
Europe’s increased demand for fossil gas has caused a hike in fossil fuel prices and energy shortages in the Global South. EU leaders must avoid long-term gas deals and invest in renewables to secure a fair and lasting transition away from fossil fuels, writes Khondaker Golam Moazzem.
The pressure on European leaders to curb their demand for Russian gas has reached a fever pitch. This week’s temporary shutdown of the Nord Stream pipeline has forced Europe to consider the ‘nightmare scenario’ of a complete halt to the flow of Russian gas. Europe has side-stepped calls for the mass implementation of energy efficiency measures ahead of winter in the EU and instead embarked on a dash for new gas supplies from the rest of the world. Its imports of liquefied natural gas (LNG) – natural gas cooled for transport – have skyrocketed by 50% compared to a year ago. That upswing in demand made an already-competitive global gas market even tighter, sending energy prices and the cost of living soaring. Due to their complementary nature, the price of other fossil fuels such as petroleum and coal also shot up.
DG Okonjo-Iweala urges members to build on MC12 success to revitalize WTO core functions (WTO)
“Delivering results last month has generated expectations for more in the future,” said the DG, highlighting the many expressions of support she has received in recent weeks in her meetings with leaders from around the world for the unprecedented package of outcomes reached at MC12. “We need to use this support and momentum by continuing our efforts to revitalize or reinvigorate all of the WTO core functions so that we can remain fit-for-purpose in a changing global economy and continue to deliver more for people around the world,” she added.
DG stresses at Chairs Programme Annual Conference importance of implementing MC12 outcomes (WTO)
DG Okonjo-Iweala thanked Chairs for their active participation in the WCP through evidence-based research and tailored advice to governments and other stakeholders. This is key to supporting national and regional trade policy formulation and central to the capacity building objectives of the Programme, she emphasized. The DG said the programme has generated excellent results and the WTO Secretariat will continue to provide all the resources needed to support the Chairs network so the Programme can continue to “deliver results that truly make an impact on those on the ground”.
Members urged to find new ways to rejuvenate agriculture negotiations (WTO)
Delegates took the floor to pay tribute to Ambassador Abraham Peralta for her leadership, dedication and hard work over the last two years. They also praised her contributions to the important milestones achieved at MC12 — the adoption of the declaration on the emergency response to food insecurity and the decision on the exemption of UN’s World Food Programme (WFP) food purchases from export prohibitions or restrictions.
UN Synergies Conference presses for integrated solutions to scale up action on climate crisis and sustainable development setbacks (United Nations)
More than 2,000 participants at the UN Climate and SDG Synergies Conference, held in Tokyo and virtually on 20-21 July, generated an impressive range of potential solutions and proposals for how to better integrate efforts to tackle these interlinked global crises and accelerate action to address the climate emergency and recent reversals in achieving the Sustainable Development Goals.
Creating fiscal space for development finance and stepping up regional infrastructure projects will be vital to Africa’s road to achieving net zero, African Development Bank Director General for Southern Africa Leila Mokaddem told participants at the OPEC Fund’s inaugural Development Forum. “We need to rethink the way we finance development. We need to put more resources into institutions like the African Development Bank,” Mokaddem said. Mokaddem spoke during a session entitled Turning Public Ambition into Effective Action, during which panelists discussed actions and examples of how to move commitments made by development institutions, governments and other stakeholders, “from lofty declarations to real-world change.”
The African Development Bank is making a strong case for an allocation of some of the International Monetary Fund’s Special Drawing Rights so that they can be leveraged to meet the $218 billion a year needed for Africa’s infrastructure needs such as roads and ports, participants heard.
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Local News
Arab-Spring Warning Spurs Ramaphosa to Tout Growth-Plan Progress (Bloomberg)
South African President Cyril Ramaphosa said the government is making progress on a plan to boost economic growth, after he was criticized by one of the nation’s former leaders for failing to deliver the plan.
Ramaphosa on Feb. 10 pledged to provide a comprehensive social compact -- in cooperation with business, labor unions and civil society -- within 100 days. Former President Thabo Mbeki last week slammed Ramaphosa for not fulfilling that promise, and warned that growing poverty and lawlessness in the country risks triggering protests that engulfed the Arab world a decade ago.
While the government has held talks with its social partners since February about agreeing to a compact, the process has been “slow and at times it has been quite difficult,” Ramaphosa said in an address to members of the governing African National Congress in KwaZulu-Natal province on Sunday. The party earlier elected new leaders in the province who are considered sympathetic to former President Jacob Zuma, whose followers oppose Ramaphosa’s economic reforms.
Russia-Ukraine war: Nigerian economy bleeds over logistics, forex, inflation crises (Daily Trust)
Nigeria, being an import-dependent country, is heavily reliant on the import of commodities priced in dollars. As the value of the dollar rises and these dollar-priced commodities become more expensive for holders of other currencies, such as the naira, high incidents of imported inflation will arise and weigh on the spending power of domestic consumers.
With the Russia-Ukraine war in its fifth month, Nigerians are feeling a harder pinch with the scarcity of energy sources, wheat and fertiliser, over what importers attribute to logistics issues, as well as a worsening foreign exchange (forex) scarcity.
The inflation rate is also rising, as well as a stretch in the over N41.6trillion debt servicing, which has exceeded revenue generation.
South Africa: Government affirms legitimacy of Taxi Relief Fund (SAnews)
The Department of Transport has dismissed claims that the Taxi Relief Fund (TRF) is a scam and has called on those making these assertions to desist from doing so.
The fund was established to assist minibus taxi drivers, cab drivers and e-hailing drivers, who were hard hit during the COVID-19 hard lockdowns.
“Taxi operators have until 31 March 2023 to apply for the relief fund, however, the department encourages operators to apply now and not wait for the last minute,” the Department said.
Tanzania launches cultivation of over 11,000 hectares of block farms for youth (CGTN Africa)
Tanzanian authorities on Sunday launched the cultivation of 11,453 hectares of block farms for the youth in the country’s central region of Dodoma. Hussein Bashe, the Minister for Agriculture, the launch of the cultivation of 11,453 hectares of block farms is part of the implementation of a national agricultural program for the youth.
AfDB Funding Boosts Electrification in Rural Guinea-Bissau (Energy Capital & Power)
The African Development Bank (AfDB) has greenlit a $66.4 million support package in aid of accelerated rural electrification programs in the West African nation of Guinea-Bissau.
The funding package consists of a $24.13 million grant and $27.72 million loan from the Transition Support Facility along with a $4.17 million grant and $9.37 million loan from the African Development Fund, USAID, the Sustainable Energy Fund for Africa and the Islamic Development Bank.
Work to develop social compact framework underway (SAnews)
To reduce the impact of the triple challenges of unemployment, poverty and inequality, President Cyril Ramaphosa says the country needs a number of impactful interventions, including attracting more investment and enhancing the capability of the state. “Our economy has not been growing at the pace that could enable us to make a meaningful dent in unemployment, poverty and inequality. “To turn our economy around and create the millions of jobs needed is something that cannot be achieved by government alone. A comprehensive programme will require the mobilisation of all social actors,” the President said.
Suspensions in Numsa reversed (The Citizen)
With the overturning of the suspensions of National Union of Metalworkers of South Africa (Numsa) second deputy president Ruth Ntlokose and several other union members overturned by the weekend Johannesburg Labour Court judgement, the union’s central committee was late on Sunday locked in a meeting on how to respond to the damning order handed down by Judge Graham Moshoana.
The all-important Numsa national elective congress planned for Monday at the Cape Town International Convention Centre, has been interdicted from going ahead by the court – in what has been seen as a scathing judgement by Moshoana.
Labour analysts have expressed concern that the unconstitutional suspension of Ntlokose, elected leaders and shopstewards, has heightened concerns about a possible split in the country’s biggest trade union.
Nigeria: FG's $150bn Target Receives Boost As NEPC Certifies 101 SMEs To Export Non-Oil Products (The Whistler Nigeria)
The federal government’s target to generate about $150bn in the next ten years through its Zero Oil Plan has been boosted with the certification of 101 Small and Medium Enterprises to export non-oil products.
This is just as the Minister of Industry, Trade and Investment, Otunba Richard Adeniyi Adebayo, said the federal government is leveraging on the opportunities presented by the African Continental Free Trade Area Agreement to deepen its international trading through non-oil exports.
The Minister also described NEPC’s initiative in promoting non-oil exports and increasing the market share as pro-active and urged other agencies under the ministry to emulate the action.
African Development Bank arm releases $5.4mln for Somalia food security (ZAWYA)
The African Development Fund, a subsidiary of the African Development Bank (AfDB), has approved a $5.4 million grant to support food security programmes in Somalia.
AfDB’s East Africa Regional Director General Ms Nnenna Nwabufo said the money would help address the impact of the prolonged drought and the added impact of the Russia-Ukraine conflict have deepened food insecurity in the Horn of Africa country.
Concerns raised as South Sudan delays creation of peace court (Monitor)
South Sudan’s peace monitoring body has expressed concerns over delays in creating a hybrid court, slowing the country’s bid to look into past atrocities. The Court is part of institutions which were to be set up under Chapter 5 of the Revitalised Agreement on the Cessation of Conflict in South Sudan (R-JMEC), the 2018 peace deal that halted war.
On Friday, the Revitalised Joint Monitoring and Evaluation Commission (RJMEC) says that Court, to be composed of local and foreign judges, is key in checking past accountability.
African trade and integration
The Board of Directors of the African Development Bank Group has approved a Risk Participation Agreement of $50 million with Crédit Agricole Corporate and Investment Bank.
The deal will enable African banks and their small and medium-sized enterprise (SME) clients to participate more in regional and international trade. It aims to support a cumulative trade transaction volume of $450 million over the next three years.
“This agreement strengthens confidence among various African actors to encourage a new trade dynamic on the continent,” said Mohamed El Azizi, the African Development Bank’s Director General for North Africa. “And this is crucial for the realization of the African Continental Free Trade Area, which will help to build resilience, generate growth and promote a recovery that creates opportunities and jobs.”
Steps Towards Establishing an Electronic Single Window System (COMESA)
The Electronic Single Window System (eSW) is one of the key trade and transport facilitation instruments prioritized by most of the COMESA Member States to improve the ease of doing business environment and to enhance intra-regional trade in region.
On 18 – 21 July 2022 in Addis Ababa, Ethiopia the Technical Working Group of Customs (TWG) conducted its first meeting to review various reports that have been prepared towards the development of the eSW system. Among them were Situational Assessment Study Report on Implementation of the eSW, the Draft Legal Framework and the Draft Strategy for Development and Implementation of the eSW.
Customs and Single window experts from Burundi, Djibouti, DR Congo, Eswatini, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Somalia, Sudan, Uganda, Rwanda, Tunisia and Zambia attended the meeting.
The 41st Ordinary Session of the Executive Council adopted the African Common Position on Energy Access and Just Transition, on the 15th of July 2022, a comprehensive approach that charts Africa’s short, medium, and long-term energy development pathways to accelerate universal energy access and transition without compromising its development imperatives.
Led by the African Union Commission (AUC) in collaboration with other pan-African institutions, the Common Position stipulates that Africa will continue to deploy all forms of its abundant energy resources including renewable and non-renewable energy to address energy demand. Natural gas, green and low carbon hydrogen and nuclear energy will therefore be expected to play a crucial role in expanding modern energy access in the short to medium term while enhancing the uptake of renewables in the long term for low carbon and climate-resilient trajectory.
Access to energy currently stands low in Africa compared to other regions, with more than 600 million Africans living without electricity services while 900 million lack access to clean cooking facilities. The African Common Position encourages striking a balance between ensuring access to electricity to catalysing the much-needed socio-economic growth in Africa and smoothly transitioning towards an energy system based on renewable and clean energy sources matching the ambitions of Agenda 2063.
SADC convenes workshop to raise awareness of Member States on the Women, Peace and Security Agenda (SADC)
The Southern African Development Community (SADC), in partnership with the United Nations Development Programme (UNDP) Regional Service Centre for Africa and UN Women, will from 25th to 28th July 2022 hold a regional consultative workshop to educate key stakeholders in Member States about the Women, Peace, and Security Agenda (WPS). The consultative workshop in Johannesburg, South Africa, to be held with the support of the Government of Canada, the European Union and other partners, seeks to promote an in-depth understanding of the WPS agenda within the SADC Region.
The workshop's objectives are to provide SADC Member States with an opportunity to review and validate the SADC WPS Assessment Report, to present the findings of the Assessment on the Progress and Challenges in Implementing the Women, Peace and Security Agenda at Regional and National Levels, to foster understanding of the global, continental, and regional normative instruments on the WPS Agenda, and to emphasise the significance of implementing these normative instruments.
In addition to providing recommendations for the operationalisation of the SADC Network of Women Mediators, the workshop aims to educate SADC Member States on the justification for creating National Action Plans (NAPs), stimulate implementation, and promote reporting on progress. It is anticipated that this will increase the ability of SADC Member States to domesticate UN Security Council Resolution 1325 and implement the WPS Agenda domestically, as well as increase their commitment to advancing and accelerating the WPS agenda's implementation in the Region.
Improved statistics key to unlocking the development potential of migration conclude African experts (UNECA)
The urgency of improving data and statistics to capture the benefits of migration for Africa’s prosperity and resilience was underscored at an Expert Group Meeting on migration statistics, convened by the United Nations Economic Commission for Africa (ECA).
Held in Kampala from 21 to 22 July 2022, the meeting brought together government officials from more than 18 African countries, cross-sector representatives from Djibouti, Ethiopia, Kenya, South Africa, South Sudan, Uganda and Zimbabwe, as well as delegates from the Inter-Governmental Authority on Development (IGAD), the African Union Commission (AUC) and the International Organization for Migration (IOM).
The meeting was informed by a background paper by ECA, entitled ‘towards a coordinated mechanism for collecting and utilisation of accurate and disaggregated migration data for evidence-based policies in Africa’. The paper unpacks migration patterns, progress and practices and pathways in Africa for the Global Compact for Safe, orderly and Regular Migration’s implementation, involving all stakeholders.
African Union Commission Chairperson Calls Libyan Warring Parties to Silence Their Guns for the Sake of Peace (African Business)
The Chairperson of the African Union Commission, HE. Moussa Faki Mahamat, is following with deep concern, the recent developments of insecurity in Tripoli, and calls on warring parties to silence their guns by refraining from all forms of violence in deference to the yearnings of the Libyan People for peace.
The Chairperson deplores the loss of life resulting from yesterday’s clashes between rival armed groups and emphasizes that the security of civilians is an obligation under International Humanitarian Law.
The Chairperson reiterates the continued commitment of the African Union to support the peace process in Libya through its roadmap for reconciliation, spearheaded by the AU Ad Hoc High-Level Committee on Libya, chaired by H.E. Sassou Nguesso, President of the Republic of Congo.
EABC wants logistics charter to boost region's competitiveness (The Africa Logistics)
Transport and logistics costs in East Africa compose of 35%-42% of production, too high compared to 8% in Asian countries, Dr. Merian Sebunya, Chairperson, National Logistics Platform, Uganda has said. This, she says has negatively impacted the competitiveness of the EAC bloc and trade balance. EAC transport costs are high estimated at 1.8USD per km per container against international best practices of 1 USD per km per container. Speaking at the EABC-TradeMark East Africa (TMEA) Webinar on Corridor Performance & Impact on EAC Business Competitiveness, Dr. Merian Sebunya appealed to Governments of the EAC Partner States to take deliberate actions to bring down the cost of transport & logistics in the EAC region to ensure EAC exports can compete at AfCFTA and international level.
African leaders call for urgent financing to protect world's biodiversity (Guardian Nigeria)
Ministers and experts from across Africa have called for an urgent increase in financing to protect the world’s biodiversity. They also urged all nations to commit one per cent of Gross Domestic Product (GDP) and protect 30 per cent of the planet by 2030.
They made the plea at the Africa Nature Finance Forum, held last week on the sidelines of the inaugural African Protected Areas Congress (APAC) 2022.
To address this crisis, governments, Indigenous Peoples and local communities (IPLCs), environmental organisations and businesses are working to develop a new framework to guide biodiversity conservation for the next decade, known as the post-2020 Global Biodiversity Framework (GBF).
Kenyan firms troop to DRC in hunt for bigger markets (Business Daily)
Audit and advisory firm BDO East Africa is set to start operations in the Democratic Republic of Congo (DRC) in October, joining a growing number of Kenyan firms that are setting up shop in the East Africa Community’s newest member state.
The largely untapped DRC market has recently attracted more than 20 Kenyan firms which have either set up shop or offered a commitment to make trade investments.
The entry of BDO now signals that firms offering professional business support services are beginning to follow their trading and manufacturing peers to the DRC, expecting to help them navigate the legal, tax, and regulatory environment in the country.
Zimbabwean exporters to strengthen footprint in Zambia (The Herald)
At least 30 companies will showcase their products and services in Lusaka, Zambia, from 27 July-1 August as Zimbabwe seeks to increase the visibility of its products in regional markets.
Participation of local companies at the Zambia Agricultural and Commercial Show (ZACS), which is facilitated by national trade development and promotion organisation, ZimTrade, will improve linkages with leading buyers in the market.
Sadc Ministers responsible for Disaster Risk Management call for acceleration of disaster risk ... (Chronicle)
The Ministers Responsible for Disaster Risk Management from the Southern African Development Community (Sadc) have expressed concern at the high prevalence of disasters in the Region, which has necessitated a shift in the regional approach on disaster risk reduction and allocation of significant resources to disaster response and recovery in recent years.
The Ministers also expressed concerns at the recurrence of disasters in the Region at accelerated frequency and severity and stressed the need for heightened vigilance, and proactiveness when dealing with natural disasters, instead of only reacting when disasters occurred.
Amid detente, Somalia, Kenya restart lucrative khat trade after 2-year break (Anadolu Agency)
The multimillion-dollar khat trade between Somalia and Kenya resumed on Sunday after a break of over two years, a sign of thawing tensions between the East African neighbors.
The khat trade, which generates millions of dollars every month, was one of the victims of a growing tiff between Somalia and Kenya.
Africa need $170 billion to finance infrastructure (The Citizen)
Africa needs a whopping $170 billion to finance the infrastructure projects.The money will enable the continent to close the huge infrastructure gap between it and other continents. Currently, the continent’s public expenditure on infrastructure development is estimated at 3.5 percent of the Gross Domestic Product (GDP). That is in contrast with the developed countries which spend between 4.7 and 6.5 percent of their GDPs for the same.
UBA: Bridging Africa's Global Financial Needs (Leadership News)
United Bank for Africa recently broke record as the first Pan African Bank to directly open a branch from Nigeria at the Dubai International Financial Center (DIFC) in the United Arab Emirates (UAE).
The newly minted branch is expected to drive the UBA Group’s goal of harnessing opportunities in the Middle East, Africa and South Asia (MEASA), which comprise of 72 countries with an approximate population of three billion and a nominal GDP of $7.7 trillion.
This is expected to reinforce it strong franchise as Africa’s Global Bank, facilitating trade and capital flows between Africa and the rest of the world, as the DIFC branch will service corporate & financial Institutions and customers across the Middle East with a core focus on correspondent banking, relationship management and advisory services.
AfCFTA programme to be added to tertiary education curriculum (Myjoyonline)
The AfCFTA Policy Network (APN) is developing a programme to be included in the curriculum of tertiary schools starting from the University of Ghana (UG).
The APN hopes to develop and inculcate a programme based on free trade practice of the AfCFTA into the curriculum of tertiary education to provide the youth an opportunity to own the Agreement in positivity; hence, its partnership with the University of Ghana Business School (UGBS).
Special Envoy for the Horn of Africa Mike Hammer's Travel to Egypt, the UAE, and Ethiopia (U.S. Embassy in Egypt)
Special Envoy for the Horn of Africa (SEHOA) Mike Hammer will travel to Egypt, the United Arab Emirates, and Ethiopia July 24-August 1. He will provide U.S. support toward forging a diplomatic resolution to issues related to the Grand Ethiopian Renaissance Dam (GERD) that would achieve the interests of all parties and contribute to a more peaceful and prosperous region. In Addis Ababa, Ambassador Hammer will also consult with the African Union, under whose auspices GERD talks occur.
EAC leaders call for fast tracking admission of Somalia into bloc (Garowe Online)
Leaders of the East African Community (EAC) have directed the EAC Council of Ministers to fast-track verification for admission of the Federal Republic of Somalia into the regional bloc. A communique issued late Friday at the end of the 22nd Ordinary Summit of the EAC heads of state in Tanzania's northern city of Arusha said the leaders noted that the verification for admission of Somalia had not been undertaken. The EAC leaders directed the EAC Council of Ministers to expeditiously fast-track the verification in accordance with the EAC procedure for admission of new members into the EAC and report to the 23rd meeting of the summit, said the communique.
Echoes of collaboration to fast-track Africa's food system transformation keep pulsating (Guardian Nigeria)
The former Ethiopia Prime Minister, and Board Chair of AGRA, Hailemariam Dessalegn has urged Africa’s leaders to collaborate in addressing the triple-threat problem – climate change, COVID-19, and the Russia Ukraine Conflict – that has recently worsened the continent’s food security situation.
Dessalegn who gave the advice during the fourth Mid-Year Coordination Meeting of the African Union, Regional Economic Communities and Regional Mechanisms, in Lusaka, Zambia, cited the latest Food and Agriculture Organisation (FAO) report, which showed that 60 per cent of the world poor now live in Africa, highlighted the need for quick action.
Global economy news
Monkeypox declared a global health emergency by the World Health Organization (UN News)
Monkeypox is an outbreak that has spread around the world rapidly, through new modes of transmission about which we understand ‘too little’, and which meets the criteria of an emergency under International Health Regulations.
“For all of these reasons, I have decided that the global monkeypox outbreak represents a public health emergency of international concern”, the World Health Organization’s Director, Tedros Adhanom Gebreyesus, announced on Saturday during a press conference.
Tedros indicated that the current risk of Monkeypox is moderate globally and in all regions, except in the European region where the risk is high.
“There is also a clear risk of further international spread, although the risk of interference with international traffic remains low for the moment”, he added.
Members urged to find new ways to rejuvenate agriculture negotiations (WTO)
At a committee meeting on 21 July, WTO farm negotiators reflected on the outcomes on food and agriculture achieved at the 12th Ministerial Conference (MC12) and discussed how to build on the momentum to revitalise the agriculture negotiations. The outgoing chair of the negotiations, Gloria Abraham Peralta (Costa Rica), stressed the importance of capitalizing on the work done and called on members to explore new approaches that could reset the negotiations in the coming months.
Many members welcomed the two MC12 outcomes on food security, which they said sent a positive signal about the WTO’s ability to provide a timely response to crises. Singapore shared a message from the WFP’s Executive Director, David Beasley, who said the decision on the agency’s food purchases “will ensure that critical relief reaches the most vulnerable populations when and where needed”.
Some also called for action to be taken to give effect to the declaration on the emergency response to food insecurity, urging others to keep trade open and refrain from applying export restrictions not in compliance with WTO rules.
Coming Soon: World Economic Outlook Update, July 2022 (IMF)
WHEN: JULY 26, 9:00 AM ET
Press Conference with:
- Pierre-Olivier Gourinchas, Chief Economist and Director of the Research Department
- Petya Koeva Brooks, Deputy Director in the Research Department
- Daniel Leigh, Division Chief in the Research Department
Russia-Ukraine updates: US says strike on Odesa 'casts serious doubt' on Moscow's credibility (DW)
Russian missiles hit infrastructure in the port city of Odesa on Saturday, the Ukrainian military said, dealing a blow to a deal signed on Friday to unblock grain exports.
Just hours before the strikes, Moscow and Kyiv signed a landmark United Nations-brokered deal seen as crucial to reining in global food prices that would allow certain exports to be shipped from Black Sea ports, including the hub of Odesa.
EU foreign policy chief Josep Borrell labeled the attacks as "reprehensible" adding they again demonstrate "Russia's total disregard for international law and commitments."
EU Seeks Nigerian Gas As Alternative To Russia (Leadership News)
The European Union (EU) delegation to Nigeria and ECOWAS has moved to replace gas from Russia with Nigerian gas following the invasion of UKraine by Russia and the global energy crisis triggered by the raging war as well as the consequences on European countries.
The deputy director-general, department for (Energy), European Commission in Brussels, Mr Matthew Baldwin, made this known at a news conference on Friday, stressing that the EU would meet with Nigerian top government officials and private sector players, including key stakeholders in the country’s energy sector to work out the modalities.
Head of the EU Delegation to Nigeria and ECOWAS, Ms Samuela Isopi, in her remarks, said that the bloc was doing its part in contributing to the energy sector through different collaborations with Nigerian Government.
Africa: U.S.-Africa Business Summit 2022 - a Successful Event (Ministry) (Top Africa News)
The 14th US-Africa Business Summit 2022, which took place from July 19 to 22 in Marrakech, was a success, according to the Ministry of Industry and Trade.
Participants in this summit, organized under the High Patronage of HM King Mohammed VI, were able to exchange during 3 days around the opportunities to strengthen industrial links, investment and trade between our continent and the United States, said the ministry in a statement.
This summit was an opportunity for Morocco to consolidate its role as a bridge between Africa and the United States and to encourage the construction of a forward-looking African economy, drawing strength from its integration into the global system and international value chains.
Global inflation, trade bans send food ever higher (Arkansas Online)
As inflation surges around the world, politicians are scrambling for ways to keep food affordable as people increasingly protest the soaring cost of living.
One knee-jerk response has been food export bans aimed at protecting domestic prices and supplies as a growing number of governments in developing nations try to show a nervous public that their needs will be met.
For business owners, the rising cost of cooking ingredients -- from oil to chicken -- has prompted them to raise prices. For consumers, it has meant paying more for the same or lesser-quality food or curbing certain habits altogether.
Food prices had been steadily climbing worldwide because of drought, supply chain issues, and high energy and fertilizer costs. The U.N. Food and Agriculture Organization says food commodity prices were up 23% last year.
Serbia’s push into Africa revives old Cold War ties (IntelliNews)
Belgrade is reviving ties forged during Yugoslavia’s leading position in the Cold War era non-aligned movement to expand its influence and trading relations in Africa.
African countries and other emerging markets are growing in geopolitical importance as a new Cold War looms. While Russia abruptly pivots towards the East and South in response to Western sanctions, Belgrade has been quietly building up its relationship with a number of African countries for several years.
Serbia lacks China’s economic clout or the long-standing, albeit troubled, relationships between former colonial powers and their former colonies. However, it still benefits from the former Yugoslavia’s role in founding the non-aligned movement alongside some of the major emerging economies.
UAE emerges as bedrock for new developments and breakthroughs (Gulf Today)
For a country known for its high technology absorption, the UAE’s sizable per capita market share in blockchain and associated applications is not surprising. Be it cryptocurrencies, the metaverse, or NFTs, the UAE has emerged as the bedrock for new developments and breakthroughs. However, its eminence found a true meaning recently after Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, announced the Dubai Metaverse Strategy. A first-of-its-kind initiative in the world to be undertaken at the government level, the Dubai Metaverse Strategy has many implications for the nation’s, and the region’s, digital economy.
The Metaverse strategy is aimed at increasing the number of companies and innovations related to blockchain and metaverse by five times. In doing so, the government intends to support the creation of over 40,000 virtual jobs — all cumulatively expected to contribute Dhs 4 billion to the national economy over the next five years. The feasibility of these ambitious targets stems from the fact that the UAE already boasts a sizable blockchain-NFT-metaverse sector, with around 1,000 companies contributing about $500 million to the national economy.
Macron embarks on African visit to 'renew relationship' with continent (FRANCE 24)
President Emmanuel Macron on Monday begins a three-nation tour of western African states in the first trip to Africa of his new term as he seeks to reboot France's post-colonial relationship with the continent.
Macron will begin his July 25-28 tour, also the first venture outside Europe of his new mandate, with a visit to Cameroon, before moving on to Benin and then finishing the trip in Guinea-Bissau.
Top of the agenda in the talks will be food supply issues, with African nations fearing shortages especially of grain due to Russia's invasion of Ukraine.
Europe's new trade flows for coal shaping up as import ban on Russia looms (S&P Global)
With the flow of Russian coal to Europe coming to a final end, buyers jostling for alternatives are increasingly in favor of tapping non-traditional markets, a development many believe, for better, will likely lead to the creation of new trade flows for the fuel.
While obvious substitutes like South Africa, Australia and Indonesia are a fallback plan for many European coal buyers, new origins like Tanzania, Kazakhstan and Nigeria are being positively considered as a further backup measure, sources told S&P Global Commodity Insights.
Even though coals from some of these origins have been around for some time, the fine prints of these probable new origins like coal reserves and production capacity are yet to be explicitly determined. But buyers have started exploring them as a full fledged plan of action due to competitive prices and quality in line with the requirement, market sources said.
EU asked to view Africa as a trade partner not a beneficiary of aid (The Star Kenya)
The European Union (EU) has been challenged to shift its perception of the African market amid its scramble with China for trading and investing grounds.
In a survey dubbed 'Clash of Systems' conducted by Inter Region Economic Network (IREN), China is edging out Europe as a major trading partner and investor mainly in areas of large infrastructure projects and exploitation of raw materials.
Speaking during the launch of the report, Friedrich Naumann director Stefan Schott said that Europe’s romantic view of Africa and its superiority belief in values contrasts the practical view of the continent on performance.
How and Why China Is Centralizing Its Billion-Ton Iron Ore Trade (Bloomberg)
China has embarked on one of the biggest shake-ups of the global iron-ore market in more than a decade. A newly minted state-owned group will be a hub for everything from huge mine investments in West Africa to buying the steelmaking material from international suppliers. It comes amid pandemic-related disruptions and rising geopolitical tensions that have highlighted threats to supply chains and made resource security a major focus for President Xi Jinping. Mining giants Rio Tinto Group, BHP Billiton and Vale SA will be looking to understand exactly what China is now planning for them.
What Does the Black Sea Grain Agreement Mean for Africa? (The Maritime Executive)
If Russia keeps to the deal it has signed with Ukraine allowing for the resumption of grain exports, much needed relief will be provided to importing countries, including many in Africa.
Ukraine is a notable player in global grain and oilseeds export market. And thus, the blockage of exports has contributed to the notable increase in agricultural commodity prices observed since the war started.
From an African perspective, the continent imports about $80 billion worth of agricultural products a year, mainly wheat, palm oil and sunflower seed. The annual food import bill from the sub-Saharan Africa region is roughly $40 billion per year. Therefore, however marginal, a potential decline in the prices of these commodities would be positive for importing countries – and ultimately consumers.
Retail Logistics Market Size to Garner USD 622 Billion Revenue by 2030 Fueled By Increased Worldwide Trade Activity (GlobeNewswire)
The Global Retail Logistics Market size accounted for USD 231 Billion in 2021 and is estimated to reach USD 622 Billion by 2030.
According to our global retail logistics market forecast, the rapid surge in e-commerce sales is propelling the industry's growth. Rising digital literacy among customers and the advent of e-commerce have revolutionized the face of retail logistics. Such factors coupled with constant urbanization and dual-income family units are impacting consumer preferences and perspectives across developed and emerging economies. One of the important retail logistics market trends includes advancements in the retailing sector. Furthermore, the growing penetration of smartphones and increasing internet users are supporting the retail logistics market revenue to expand rapidly.
India & Ghana hold 3rd round of Foreign Office Consultations to review bilateral ties (Republic World)
The third round of Foreign Office Consultations (FOC) between India and Ghana took place on Friday, July 22 to address and discuss approaches to further bolster bilateral relations. The nations talked about “political, economic, defence, cultural and capacity-building matters.” According to a press release from the Ministry of External Affairs (MEA), the two sides decided to strengthen their collaboration in the multilateral fora after exchanging opinions on a number of important regional and global challenges.
It is to mention that Indian investment in Ghana and bilateral trade have both been expanding steadily. In 2021–2022, India had $2.60 billion in bilateral trade. As per the release, Indian firms have made more than US$1.7 billion in investments in Ghana via 730 projects in a variety of industries, including construction, manufacturing, commerce, pharmaceuticals, agro-processing, services, tourism, etc. India is one of the biggest investors in Ghana.
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Local news
With half of SA’s exports at carbon-tariff risk, new report calls for 190 GW renewables push (Engineering News)
With almost half of South Africa’s exports at risk as the country’s key trade partners prioritise imports from low-carbon economies, a new report urges South Africa to roll-out at least 190 GW of renewables by 2050 to sustain its economic competitiveness and lay the basis for employment creation. Titled ‘It all hinges on Renewables’, the report has been published jointly by the National Business Initiative, Business Unity South Africa and the Boston Consulting Group. South Africa, the report states, is the second most carbon-intensive economy globally when compared with other economies with a gross domestic product (GDP) of more than $500-billion. It is also more than twice as carbon-intensive as the G20 average. “This puts almost 50% of exports at risk as key trade partners prioritise imports from low-carbon economies via carbon border tax adjustments and other mechanisms. “Amid stalled GDP growth, unemployment at about 35% and rising inequality, ‘more of the same’ will not be enough.”
SA, Côte d’Ivoire strengthen trade relations (SAnews)
South Africa is open for business and ready to forge beneficial bilateral relations with its partners in Côte d’Ivoire. These sentiments were shared by delegates at the South Africa-Côte d’Ivoire Trade and Investment Business Forum hosted by the Department of Trade, Industry and Competition (the DTIC) on Friday.
Addressing the delegates, Industrial Development Corporation (IDC) Head of Continental Coverage, Phiwe Marumo, said South Africa and Côte d’Ivoire have historically enjoyed strong relations, both economically and politically. “But we also acknowledge there is a lot more that needs to be done to improve and enhance a mutually beneficial commercial relationship that can be leveraged between the two countries.” Marumo said the bilateral trade has been consistent at more than R2 billion between 2017 and 2021, except in 2019 when bilateral trade fell under a billion.
U.S., Kenya launch non-tariff trade and investment partnership talks (ZAWYA)
The United States and Kenya on Thursday launched a strategic trade and investment partnership to pursue commitments to boost economic growth, support African regional economic integration and deepen trade cooperation. The U.S. and Kenyan governments will start work within three months to develop a road map for engagement in areas including agriculture safety and digital trade standards, climate change, regulatory practices, and customs procedures the U.S. Trade Representative’s office said in a statement. Kenya has long sought a full free trade agreement with the United States, and negotiations for such a deal to lower bilateral tariffs were launched by the Trump administration with the east African country in 2020. But the Biden administration, which has shunned traditional trade deals, did not resume those talks. Kenya enjoys substantial duty-free access to the U.S. market through the Africa Growth and Opportunity Act (AGOA), a trade preference program for sub-Saharan African countries, but it expires in September 2025.
Adopt home grown policies to help farmers - CSO urges government (BusinessGhana)
The Ghana Agroecology Movement (GAEM), a civil society organisation, has called on the government to adopt home grown policies to support farmers to venture into organic farming and the production of organic fertilisers. It urged the government to collaborate with the private sector to provide adequate financial and logistical support for farmers to adopt agroecological farming practices such as organic farming. The movement explained that in the face of current constraints in the global supply chain, including the high cost of fertilisers and other farm inputs due to the Russia-Ukraine war, resorting to organic farming was the most prudent thing.
President Samia to launch fertiliser scheme in August (The Citizen)
President Samia Suluhu Hassan will inaugurate the country’s fertilizer subsidy programme during Farmers Day (‘Nane Nane’) in August this year. This was revealed by Agriculture minister Hussein Bashe here on Tuesday, saying the Head of State has made it clear that she was determined to revolutionise agriculture in the country. “In this fiscal year (2022/23), the government has committed itself to provide Sh150 billion as a subsidy package for fertiliser, to smallholder farmers, a response to the world’s commodity price upsurge. He added: “The government has also reintroduced the Fertilizer Bulk Procurement System (FBPS) through which a price cap for fertiliser will take effect, to stop businesses from hiking prices as witnessed in recent months.” Unscrupulous traders have been hiking the prices arbitrarily on ground of Covid pandemic and the Russia-Ukraine conflict yet sometimes this was uncalled for, hence the government sought to reinstate FBPS, and control prices.
Nigeria hasn’t been able to produce steel: Remanufacturing could be the solution (Down to Earth Magazine)
Lack of a rail line around Ajaokuta Steel plant, changes in political and operational management stymied completion Nigeria has pumped more than US$8 billion into Ajaokuta Steel Company, a project which began more than 40 years ago but has yet to produce one tonne of steel. Several attempts have been made to bring the plant into production, but without success. It was built to 98% capacity by the Soviet Union’s Tyazpromoexport. But the lack of a rail line around the plant, and changes in political and operational management over the years, stymied completion. Bilateral discussions in 2019 raised the possibility of Russian funding to resuscitate the steel plant, but the COVID-19 pandemic and the Russia-Ukraine crisis may have stalled any unofficial agreements. Another problem for the plant is that some of its installed equipment may have been corroded and degraded by now.
Resilience to Water Scarcity and Commodity Price Shocks are Critical for Moroccan Economic Growth and Stability (World Bank)
After a strong recovery in 2021, Morocco’s economy has suffered this year from the impact of a severe drought, a slowing global economy, and higher global energy and food prices. According to the World Bank’s latest report Morocco Economic Monitor, Spring 2022: The Recovery is Running Dry, the economy will slow down markedly in 2022, with a projected growth rate of 1.3 percent in 2022, compared to 7.9 percent last year. The impact of the drought, compounded by the war in Ukraine, highlights Morocco’s exposure to climate and global commodity price shocks. Successive droughts over three of the last four years are a stark reminder of the vulnerability of Morocco’s economy to increasingly erratic rainfall levels. The report includes an analysis of the macroeconomic impact of droughts and water scarcity in Morocco, carried out as part of upcoming work that looks at climate and development in Morocco.
African trade and integration
Summit of EAC Heads of State commit to revitalize the bloc’s Common Market (EAC)
The Summit of EAC Heads of State have reaffirmed their commitment to implementing the EAC Common Market Protocol. The Summit that met physically for the first time in three years noted that the Common Market was the best way to increase intra-regional trade and spur economic growth in the region.
In his remarks, President Uhuru said that infrastructure development was critical in attaining the region’s objective of being one big market stretching from the Indian Ocean to the Atlantic Ocean. President Kenyatta said that East Africa would only attain the Common Market if its citizens were able to communicate easily, and to move and ferry goods freely across the region.
President Kenyatta said that if the region is not interlinked through infrastructure, it would remain a market for other nations and blocs, not a producer of commodities for sale. He said that by exporting minerals and raw materials, the region would essentially be exporting jobs as is now the case, adding that value addition to national products was key. President Kenyatta said that EAC had a vast opportunity to grow with its ever-expanding market and therefore reduced economic dependence on the developed world.
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East African leaders eye closer links, infrastructure growth for economic boost
Report: Africa Countries Partly to Blame for Food Insecurity (VOA)
Economic and trade experts are calling on African countries to increase trade with each other and revive their agriculture sectors to overcome food insecurity and slow economic growth exacerbated by the war in Ukraine. The global food crisis has led to some 300 million Africans being food insecure. The crisis in Africa has multiple causes: persistent drought in eastern Africa, high food and energy prices, and the cutoff of wheat exports from Ukraine. Speaking online to journalists Wednesday, Stephen Karingi, the head of trade at the United Nations Economic Commission for Africa, said African countries also share some blame for the situation. “Our food markets are experiencing a shock that is coming from outside the continent but why we are experiencing this shock is because we have very low intra-African trade in agriculture and agro-foods,” Karingi said. “If we had done better and unlocked the full potential of the agricultural sector, we wouldn’t be experiencing what we are experiencing today.”
As part of its regular Price Watch Dialogue series, the African Centre for Statistics (ACS) at the Economic Commission for Africa (ECA) hosted, on 21 July, a policy dialogue on the impact of the Ukraine-Russia conflict on commodity and food prices in Africa. In his welcoming remarks, Oliver Chinganya, ACS Director, stated “Africa, in the last two years, has been hit by exogenous shocks that undermine its dreams of prosperity. Interest rate hikes, increased borrowing costs, weakened currencies and tightening global financing conditions have had dire implications on the fiscal space of low and middle-income countries.”
ECA is supporting Member States to reduce the severity of the food crisis through the Africa Trade Exchange Platform (ATEX). The ATEX is a pool procurement marketplace, which has the potential to strengthen Africa’s economic resilience. “The platform can mitigate the supply shocks by pooling and aggregation Africa’s demand and supply to enable the negotiation of competitive prices and facilitate the delivery of essential commodities at affordable prices while boosting regional trade,” explained ECA economist, Wafa Aidi.
Afreximbank and East African Business Council launch the EABC-Africa Trade and Investment Council (Afreximbank)
African Export-Import Bank (Afreximbank) and the East Africa Business Council (EABC) have launched the EABC – Africa Trade and Investment Council, with the goal of creating a platform for engagement and investment between the East Africa Community (EAC) and the rest of Africa, to unlock investment opportunities, private sector development and business growth. Launched in Rwanda, the Council will help the private sector in EAC to engage with the rest of Africa with a view towards increasing access to intra-African investment as well as trade and market information through trade fairs and investment forums, while increasing knowledge and awareness. Through this arrangement, Afreximbank will provide a range of its financing instruments and trade facilitation initiatives to facilitate intra-African trade and investment under the African Continental Free Trade Agreement (AfCFTA).
AU Commissioner calls countries to address high air transport costs (IPPMedia)
The Commissioner made the statement recently at the 34th African Civil Aviation Commission (AFCAC) extra ordinary plenary that took place from 14-15th July 2022 in Dakar-Senegal. She said while the aviation industry seeks to recover, it has to be affordable to Africans and competitive with other modes of transport, to facilitate intra-African trade and free movement of people and goods. “Our priorities are to address the issue of the high cost of air transport on the continent,” she said.
Giving details she said that Africa’s total international air connectivity in May 2022 was 93 percent of pre-crisis levels and international air connectivity for May 2022 is 77 percent of pre-crisis levels. In addition to that, air cargo, which was a key lifeline for vaccines, supply chains, and airline revenues throughout the COVID-19 crisis, has grown to be an even more vital contributor to Airline revenues.
To capitalise on green transition, Africa urged to add value to critical minerals (Engineering News)
The global transition to lower-carbon economies and societies presents resources-rich Africa with an opportunity to boost growth and employment by playing a greater role in mining and processing the so-called green or critical minerals required for low-carbon technologies. Green minerals are those used in vast quantities in modern electric systems, such as renewable-energy products, batteries and power distribution, and include copper, cobalt, lithium, manganese, graphite and nickel. However, as the world’s major powers increasingly compete for green technology production capacity and search for supplies of green minerals, Africa’s priorities regarding value addition and industrialisation could be overshadowed.
To avert this, Africa needs to add value to its green minerals supply chains to capture a greater portion of the minerals supply chain, boosting its overall contribution to green technology development and the broader manufacturing sector.
The 41st Ordinary Session of the Executive Council adopted the African Common Position on Energy Access and Just Transition, on the 15th of July 2022, a comprehensive approach that charts Africa’s short, medium, and long-term energy development pathways to accelerate universal energy access and transition without compromising its development imperatives.
The African Union Commissioner for Infrastructure and Energy H.E Amani Abou-Zeid calls the adoption of the Common Position ‘a major step forward’. “This is an important and major step forward towards ensuring and confirming Africa’s right for a differentiated path towards the goal of universal access to energy, ensuring energy security for our Continent and strengthening its resilience, while at the same time acting responsibly towards our planet by improving the energy mix.” said Dr Abou-Zeid emphasising that it is a timely measure to push for favourable outcomes and tangible investments in energy and infrastructure at COP 27 set to take place in November 2022 in Sharm El Shiekh, Egypt.
Access to energy currently stands low in Africa compared to other regions, with more than 600 million Africans living without electricity services while 900 million lack access to clean cooking facilities. The African Common Position encourages striking a balance between ensuring access to electricity to catalysing the much-needed socio-economic growth in Africa and smoothly transitioning towards an energy system based on renewable and clean energy sources matching the ambitions of Agenda 2063.
Invest in Africa, African Development Bank chief urges investors at U.S.-Africa Business Summit (AfDB)
The President of the African Development Bank Group Dr. Akinwumi Adesina has given strong assurance to U.S. investors that Africa is a secure, competitive and profitable market for investment. Adesina was speaking on Wednesday at the U.S.-Africa Business Summit in Marrakech where he told American investors to see Africa as a logical investment destination and to engage with the continent in win-win partnerships.
In a video message, Vice President Kamala Harris said: “We are focused on the urgent need to increase food production and exports with and within Africa.” She said public-private partnerships could play a key role in this regard. The U.S. Corporate Council on Africa partnered with Morocco to organize the summit under the theme, ‘Building Forward Together.’
Speech by President Charles Michel at the Mid-year coordination meeting of the African Union (European Commission)]
Exactly five months ago, we, European and African leaders, gathered in Brussels for an exceptional Summit. Together, we decided on a new paradigm, a new software for our strategic partnership, a software anchored in the principles of mutual respect, common interests, shared values and sincere equality between partners.
And now we must follow through on our commitments and that is precisely what we have begun to do together, through respectful and quality partnerships. The goal of our partnership is to create ties, not dependencies, strong bonds to face challenges together.
You have decided to set up the Continental Free Trade Area. Boosting trade and economic integration, this is common sense and this is also the path chosen many years ago by the European Union to build the internal market. It is therefore no surprise that we are ready to support.
you have chosen the path of economic integration, and as President Hichilema put it so perfectly at dinner last night, our shared goal is to promote prosperity through investment, economic cooperation and trade, not so as to share poverty, but so as to share prosperity fairly. It is in that spirit that the Global Gateway project, presented in Brussels five months ago, aims to mobilise €150 billion for investments that promote and support the capacity for prosperity and economic development.
India-African trades reached a record US$89.5 bln in FY2020/2021 (Ecofin)
Trade between India and Africa reached a new record in the 2020-2021 fiscal year that ended on March 31, 2021. From US$56 billion during FY2019-2020, trade between the partners rose to US$89.5 billion, the Indian Minister of External Affairs Subrahmanyam Jaishankar (photo) announced last Tuesday.
Through the Duty-Free Tariff Preference (DFTP) Scheme that extends duty-free access to 98.2 percent of India’s total tariff lines, India has opened its market to African countries. So far 33 LDC African nations have been entitled to get benefits under this scheme,” he said at the17th CII-EXIM Bank Conclave on India-Africa Growth Partnership.
The Indian diplomat added that the implementation of the African Continental Free Trade Area (AfCFTA) would help Indian companies boost their presence on the continent.
Govt notifies five ports for imports of pulses from Myanmar, Mozambique & Malawi (The Financial Express)
To meet domestic shortfall, the government has notified imports of 0.6 million tonne (MT) of tur and urad annually under bilateral agreements with Myanmar, Mozambique and Malawi, through five ports. According to a notification issued by the Directorate General Foreign Trade, import of pulses will be allowed through five ports – Mumbai, Tuticorin, Chennai, Kolkata and Hazira. However, all the imports consignments need to have ‘certificate of origin’ issued by respective countries.
India signed an MoU with Mozambique for import of 0.2 million tonne of tur annually for five years when the retail prices of tur skyrocketed to Rs 200 a kg in 2016. This MoU was extended for another five years in September 2021. In 2021, India entered into a MoU with Malawi for the import of 0.05 MT tur per annum, till 2025. Imports from all the three least developed countries are exempted from import duties. According to estimates, India imports around 15% of annual pulses consumption. Around 2 MT of pulses were imported in FY22.
World Bank approves $100m support Africa Centres for Disease Control program (Devdiscourse)
The World Bank has approved a $100 million support program for the Africa Centres for Disease Control (Africa CDC) that will help enhance the institution’s technical capacity and strengthen its institutional framework to intensify support to African countries in preparing for, detecting, and responding to disease outbreaks and public health emergencies. Today the African continent is addressing several infectious disease outbreaks in addition to COVID-19 and there are growing risks looking ahead. Recent assessments have revealed widespread gaps in the preparedness capacities of African countries that disproportionately impact the poorest and more vulnerable. Regional approaches to health policies and interventions in complementarity with country and global efforts underscore the value of a strong Africa CDC geared towards safeguarding the health of the continent.
“Africa is changing the dynamic in its journey to realizing a New Public Health Order. This project comes at a critical time as we focus on enhancing our support to AU Member States on the health security agenda and standing up our autonomous institution of the AU,” said Dr. Ahmed Ogwell Ouma, Acting Director of the Africa Centres for Disease Control.
Global economy news
DG Okonjo-Iweala to African Union: MC12 outcomes will make a material difference for people (WTO)
One of the most important challenges facing the world today is food insecurity, a crisis already affecting millions in Africa. A number of heads of state at the African Union summit underlined the growing problem of food insecurity, which is being exacerbated by rising costs for food, energy, fertilizers and other agricultural inputs.
The Director-General urged African countries to take part in ongoing talks on making the WTO more supportive of small businesses and climate goals. On the latter, she said the UN Climate Change Conference in Sharm El Sheikh, Egypt, in November would be an opportunity to showcase how trade can be a bigger part of the solution to climate mitigation and adaptation.
UNCTAD urges action to address consumer vulnerability in financial services (UNCTAD)
The cascade of crises facing consumers, from COVID-19 to food and energy price shocks due to the war in Ukraine and climate change, puts billions of people in a vulnerable situation. The digital transformation of economies is also propelling consumer vulnerability to new heights. Amid the heightened vulnerability, world experts discussed financial consumer protection at UNCTAD’s meeting of the intergovernmental group of experts on consumer protection law and policy held on 18 and 19 July. “Accessing and benefiting from financial services is a basic consumer right,” said Teresa Moreira, head of competition and consumer policies at UNCTAD, “It’s essential to realizing most economic transactions nowadays and for improving a consumer’s life,” she added.
How competition enforcement can boost economic recovery (UNCTAD)
Experts explored how competition law enforcement should evolve to contribute to post-pandemic recovery during the twentieth meeting of UNCTAD’s intergovernmental group of experts on competition law and policy held from 20 to 22 July. The pandemic called for a rethink of how authorities administered and enforced competition laws, the exemptions they granted and the activities they authorized. “Disrupted markets required competition authorities across the world to react quickly and show flexibility to the new context. Lessons learned can lead to more effective competition law and enforcement,” said Teresa Moreira, head of competition and consumer policies at UNCTAD.
Global Findex Database 2021 reports increases in financial inclusion around the world during the COVID-19 pandemic (World Bank)
In developing countries today, 71% of people have an account, up from 42% a decade ago. (Globally, 76% of adults around the world have an account today, up from 51% a decade ago.) These tremendous gains are also now more evenly distributed and come from a greater number of countries than ever before. The biggest growth has been in the use of digital payments, which surged during COVID-19 mobility restrictions and when cash was perceived as unsanitary.
Digital payments are typically safer and more convenient, and can be an entry to using other financial services. Findex data show that adults who receive a payment into an account in developing economies make use of financial services more than the average adult.
In developing economies, 36% of adults received a payment into an account, such as private or public sector wage payments, government transfer or pension payments, payments for the sale of agricultural products or domestic remittances.
Standards committee showcases work on transparency, discusses digital and environmental issues (WTO)
The Committee also held a thematic session on how micro, small and medium-sized enterprises (MSMEs) can better participate in international trade. Other activities during the week included work on developing guidelines to help governments improve product certification and on how regulations can help pandemic preparedness. A total of 80 specific TBT-related trade concerns were discussed by members, 13 of which addressed new concerns, most of them related to environmental and digital issues.
WTO issues updated note on trade in medical goods in the context of tackling COVID-19 (WTO)
The updated note points out that total imports and exports of medical goods were valued at US$ 2,028 billion in 2019 and grew to US$ 2,654 billion in 2021, with a yearly growth rate of 14.4 per cent. In 2019, before the pandemic, the medical goods sector comprised 5.3 per cent of total world trade. This share increased to 6.6 per cent in 2020 and was at 5.9 per cent in 2021.
Black Sea grain exports deal ‘a beacon of hope’ amid Ukraine war – Guterres (UN News)
“Today, there is a beacon on the Black Sea,” the UN chief said. “A beacon of hope – a beacon of possibility – a beacon of relief -- in a world that needs it more than ever.” The UN plan, which also paves the way for Russian grain and fertilizer to reach global markets, will help to stabilize spiralling food prices worldwide and stave off famine, affecting millions.
Ukraine is among the world’s leading grain exporters, supplying more than 45 million tonnes annually to the global market, according to the UN Food and Agriculture Organization (FAO). The Russian invasion, which began on 24 February, has sparked record food and fuel prices, as well as supply chain issues, with millions of tonnes of grain stocks stuck in silos. In addition to stabilizing global food prices, the agreement “will bring relief for developing countries on the edge of bankruptcy and the most vulnerable people on the edge of famine,” said Mr. Guterres.
How trade regulations may be opening up a new era of sustainable growth in the Global South (The Conversation)
In our interconnected world the food systems are increasingly under pressure. Cross-border trade has brought prosperity to households and food diversity to our kitchens, but also an increased risk of transporting pests and pathogens. Illegal trade in live animals, which accounts for $8-10 billion annually, exacerbate these hazards yet even more. Climate change is another global challenge.
Several international institutions, such as the World Trade Organisation (WTO), are stressing the importance of the problem and the need to act, and encourage the use of trade policies to support the climate agenda.
Trade policies such as the sanitary and phytosanitary (SPS) measures are pervasive in the agri-food sector and frequently used to regulate trade of products vulnerable to pests and pathogens and exposed to disease outbreaks. Their aim is to protect human, animal or plant life or health through safety standards.
With the Global South accounting for the vast bulk of raw agricultural production (e.g., the value added of agriculture accounted for 17.2% of Gross Domestic Product of Sub-Saharan Africa in 2021), Fabio Gaetano Santeramo and I were curious to see how these regulations impacted national economies and global trade.
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South African president urges stakeholders to examine progress in redressing racialized economy (Xinhua)
South African President Cyril Ramaphosa on Wednesday urged stakeholders to examine areas where transformation has been slow and implementation has been weak as the country reflected on progress in transforming racialized economy.
There are now more than 300,000 black entrepreneurs who own over half of all small businesses in the formal sector in the country, while in 1994, the year when apartheid ended, there were around 150,000 black-owned formal businesses in South Africa, Ramaphosa gave an example of gains in the transformation at the opening of the inaugural Black Industrialists and Exporters Conference in Johannesburg.
There has also been substantial progress on employment equity and the number of black managers in the private sector has more than doubled over the past 20 years, from 125,000 in 2002 to over 350,000 at present, Ramaphosa told more than 1,000 delegates, including officials, entrepreneurs, representatives of labour unions, citing figures of labour force surveys.
SA's consumer price inflation races to 13-year high (Sunday World)
South Africa’s consumer price inflation (CPI) raced to 7.4% in June from 6.9% in May, show Statistics SA figures that were released on Wednesday. This is the highest rate recorded since May 2009 when the rate was at 8%. “The consumer price index increased by 1.1% month on month in June 2022,” said Stats SA.
According to Stats SA, the main contributors to the 7.4% annual inflation rate were food and non-alcoholic beverages, housing and utilities, transport, as well as miscellaneous goods and services.
It said food and non-alcoholic beverages increased by 8.6% year on year and contributed 1.5 percentage points to the total CPI annual rate of 7.4%, while housing and utilities increased by 5.1% year on year and contributed 1.2 percentage points.
AfCFTA: 'Lack of export strategy undermines Nigeria's gains' (New Telegraph Newspaper)
The lack of export strategy by Nigeria will deny her the opportunity of reaping maximally from African Continental Free Trade Area (AfCFTA), a faculty member of the Lagos Business School (LBS), Dr Frank Ojadi, has said.
“I was examining the coastal shipping which ought to boost the African Continental Free Trade Area (AfCFTA) and I discovered that high costs in our ports and shipping are contributing to our not being competitive enough to export products. “Coastal shipping will help in properly placing Nigeria to reap bountifully from the AfCFTA. Infrastructural deficits that are associated with
Angola awards $333m contract to Trafigura consortium to improve Congo rail link (Engineering News)
Angola's ministry of transport has awarded a tender to a Trafigura consortium to operate and expand rail infrastructure to speed up commodity imports from Democratic Republic of Congo.
Congo, Africa's biggest copper producer, exports copper, cobalt and other metals in trucks via Tanzania or South Africa, which takes several weeks because of congestion and customs delays.
As part of a 30-year concession agreement, the consortium has agreed to invest $256-million in infrastructure, $73-million in rolling stock and $4.3-million on other activities, Angola's transport ministry said, to improve the Lobito corridor.
South Africa: Finance gaps for local green entrepreneurs need to be addressed (Engineering News)
Local green entrepreneurs (LGEs) are faced with a finance gap in South Africa, with many small, medium-sized and microenterprises (SMMEs) operating in the space seeking funding and support and struggling to find it, economic research firm Trade and Industrial Policy Strategies (Tips) sustainable growth researcher Elize Hattingh has noted.
LGEs have the agility to accelerate access to new markets and play a catalytic role in the diffusion and uptake of green innovations, owing to their role as key adopters and testers for radical green innovations in the production and manufacturing of environmental goods, services and technologies – which many established firms view as high-risk and therefore avoid.
Hattingh noted during a July 20 webinar that SMMEs were critical for economic development and job creation, but there should also be acknowledgement of their potential to be vital economic players in driving inclusive and sustainable development.
Nigeria: AfCFTA: NAC to anchor agreement on 8 pillars to boost trade (Daily Sun)
To achieve the objectives of the intra-Africa trade, the National Action Committee (NAC) on African Continental Free Trade Agreement (AfCFTA), has said it would anchor its strategy on eight pillars that would align with the African Union’s framework for boosting the continental trade.
Secretary of the Committee, Francis Anatogu, who made the remark recently also added that in partnership with the Lagos Chamber of Commerce and Industry (LCCI) and support from Nigerian Export Promotion Council (NEPC), the committee has commenced a project to onboard Nigeria SMEs on to its e-commerce platforms focusing initially on three cities of Lagos, Aba and Kano.
He said in partnership with the Federal Ministry of Agriculture and Rural Development, the committee has commenced a project to commercialise agricultural research findings available in the various research institutes across the country as one of the steps to improve yield as well as incentivise research and innovation for agricultural products development for export.
Ghana Supports The Establishment of The African Credit Rating Agency (African Union)
The APRM delegation, led by Dr. Abdoulie Janneh, who is the Vice Chair of the APR Panel of Eminent Persons and Prof. Eddy Maloka, the Chief Executive Officer of APRM Continental Secretariat, met with the Vice-President of Ghana, Hon. Mahamudu Bawumia during their official visit to Ghana. Ghana reaffirmed its support to the establishment of an African Credit Rating Agency. Ghana is already Championing the establishment of the three African Union Financial Institutions - the African Investment Bank (AIB), the African Monetary Fund (AMF) and the African Central Bank (ACB).
The APRM was mandated by the 4th African Union Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning and Integration to undertake a study on Financial, Structural and Legal feasibility of establishing an African Credit Rating Agency. The outcomes of this study are scheduled to be presented to the 5th STC meeting, which will be held in Lusaka, Zambia from the 21 - 22 July 2022 for consideration, endorsement and recommendation to the relevant policy structures of the African Union.
Liberia's Agriculture, Health, WFP, Partners launch nationwide rapid food security assessment (Farmers Review Africa)
Liberia’s Ministries of Agriculture and Health, along with the United Nations World Food Programme (WFP), and sector partners have launched rapid food security and nutrition assessment in urban and rural communities of Liberia. The program which will run for two weeks, will cut across Liberia’s 15 counties. It is part of efforts to assess the impacts of the global crisis on the agricultural production, rural livelihoods, food security and nutritional status of households and communities.
Socio-economic shocks of the COVID-19 pandemic and the conflict in Ukraine have hampered the already precarious food security situation in Liberia in recent years. According to the 2022 State of Food Security and Nutrition in the World (SOFI) report, the number of people affected by hunger globally rose to as many as 828 million in 2021, an increase of about 46 million since 2020 and 150 million since the outbreak of the COVID-19 pandemic, with Sub-Saharan Africa bearing the heaviest burden.
Nigeria: Stakeholders Identify Non-oil Exports as Panacea for Economic Rejuvenation at Zenith Bank Int’l Trade Seminar (THISDAY Newspapers)
Stakeholders have unanimously called for support of Nigeria’s non-oil export sector at the seventh annual edition of the Zenith Bank International Trade Seminar with the theme: “Unlocking Opportunities in Nigeria’s Non-Oil Export Business,” which was held yesterday in Lagos as well as virtually.
In his goodwill message presentation, the Founder and Chairman of Zenith Bank Plc, Mr. Jim Ovia called for a concerted effort towards diversifying Nigeria’s export base through the promotion of non-oil exports.
UNIDO: FG Should not Take 90% MSMEs Contribution to Nigerian Economy for Granted (THISDAY Newspapers)
The Regional Director of the United Nations Industrial Development Organisation (UNIDO), Mr Jean Bakole, has opined that the current economic situation in Nigeria can be boosted if the federal government takes cognizant of the huge contribution of the Micro Small and Medium Enterprises to all business activities in the country.
Speaking in Abuja on the various interventions being spearheaded by UNIDO in the country in recent years, Bakole pointed out that the MSMEs accounts for 96 per cent of all businesses in Nigeria and contributes 50 per cent of the GDP as well as providing over 48 percent of all employment opportunities in Nigeria.
He said, “In the Nigerian economy, the role of the MSMEs is absolutely key. They represent almost 96 percent of the business activities in the country. They are contributing to about 50 percent of the national GDP and account for 48 percent of all employment in the country.
Ghana, Thelo DB Consortium to Sign Agreement for Western Railway Line Project (Top Africa News)
Thelo DB consortium will sign a framework agreement for the transformational Western Railway Line Project with the government.
The signing ceremony will take place on July 25, 2002 during the Ministerial Programme hosted by the African Continental Free Trade Area Agreement (AfCFTA) Secretariat in Accra, Ghana.
Ronnie Ntuli, Chairman, Thelo DB, in a statement issued yesterday said "The Western Railway Line Project will transform Ghana's existing railway infrastructure base into a modern, robust and integrated railway system, with the associated infrastructure to position Ghana's rail network as a leading transport system in Africa."
ZAMBIA: The State wants to mobilise nearly $6 billion for access to water by 2030 (AFRIK)
The government is launching a new programme to secure access to water in Zambia. The “Zambia Water Sector Investment Programme”, aims to mobilise $5.75 billion for the construction of new water supply facilities in the East African country.
In addition to improving water supply by 2030, the programme will create jobs in Zambia’s water sector. Some 200,000 formal jobs will be created through gender-sensitive investments in water security, industrialisation and climate-resilient development.
The programme recently launched in collaboration with the International High Level Panel on Water Investments in Africa is part of the Continental Water Investment Programme (CWIP).
Nigeria: AUDA-NEPAD partners UN to deploy technology to assist smallholder farmers (Tribune Online)
As part of its efforts to contribute towards food security in Nigeria, the African Union Development Agency-New Partnership for African Development (AUDA-NEPAD) has unveiled the Juncao technology which it said would assist Nigerian farmers especially smallholder farmers grow more food, thereby fighting hunger.
The National Coordinator/CEO of AUDA-NEPAD/African Peer Review Mechanism, Princess Gloria Akobundu while speaking at the National Workshop on “Applications of Juncao Technology and its contributions to the achievement of sustainable Agriculture and the sustainable development goals in Nigeria, said the workshop aims to help African countries eliminate hunger and reduce poverty by raising economic growth through agriculture-led development.
The program is in a partnership between AUDA-NEPAD and the United Nations Department of Economic and Social Affairs (UNDESA).
Youth Expo to be held in Lüderitz (Namibia Economist)
The Namibia Facility Management (NFM) is inviting the youth to the Youth Entrepreneurial Mentorship Expo, taking place at Lüderitz Old Power Station from 27 to 28 July, in Lüderitz.
Under the theme, ‘Youth participation in the Namibian Economy by taking full advantage of African Continental Free Trade Area (AfCFTA) through Entrepreneurial Innovation’, the expo aims to showcase career opportunities and career guidance tips to inspire the young Namibian people.
African trade and integration
UN summit galvanizes action for development agendas in Africa (UN News)
The development of Africa was spotlighted at a key UN meeting on Wednesday, with attention focused on advancing the 2030 Agenda for Sustainable Development and the African Union (AU) Agenda 2063.
Despite being “rich with human and natural resources and enormous untapped economic and social potential,” General Assembly President Abdulla Shahid told the high-level The Africa We Want dialogue that the continent “still faces challenges” in realizing the Sustainable Development Goals (SDGs).
Africa has undergone a dramatic transformation since the end of the colonial era, with many countries struggling post-independence to secure socio-economic development, peace and security.
Press Release Committee of SADC Ministers Responsible for Disaster Risk Management (SADC)
A team, led by Dr. Mubita LUWABELWA, Director for Policy Planning and Monitoring and Evaluation (PPRM) and comprising of the Mr. Khutula SIBANDA, Director for Industrial Development and Trade (IDT) as well as our representative at the African Union, Mr. Jevin Pillay Ponisamy, attended the 41st Ordinary Session of the Executive Council of the African Union, the 4th Mid-Year Coordination Meeting (also referred to as the second AU Summit) held in Lusaka, Zambia from 14 to 17 July 2022.
Several issues were on the agenda of the 41st Ordinary Session of the Executive Council such as the Member State to be selected to host the headquarters of the African Medicines Agency (AMA) and the ultimate choice was on Rwanda; discussions on phase one and two on the operationalization of the Africa CDC and the financial sustainability of the Africa Epidemics Fund; the mid-term implementation report of the African Union theme of the year for 2022 on nutrition; the appropriate level of funds to be used under the crisis reserve facility of the AU Peace Fund. Elections to different positions were also held during this session.
North Africa: Private sectors have a key role to play in economic recovery, resilience (UNECA)
Tangier, 20 July 2022 (ECA) - The ECA Office for North Africa launched today a workshop on “Scaling-up the private sector participation in North Africa,” in partnership with the Abdelmalek Essaadi University and the National School of Business and Management of Tangier (ENCGT).
This event is taking place in Tangier on 20-22 July with the aim of providing practitioners, policy makers, development institution representatives and academics with a platform to exchange views on policies and best practices on strengthening private sectors’ role in North Africa. In addition, participants are drawing the outlines of a roadmap on this issue while accounting for the country specificities.
“In the current economic context, North African public sectors have very limited room to invest, and for countercyclical policies more broadly. This also underscores the growing need for a higher private sector involvement in greening the economy and in addressing social issues such as poverty and food insecurity. We need to understand what continues to hold the private sector back and challenges related to relatively low growth, limited labour utilization and subdued labour productivity in the region,” said Zuzana Brixiova Schwidrowski, Director of the ECA office for North Africa.
The African Development Bank will release an additional $27.41 million to implement Phase II of its flagship agricultural initiative, "Technologies for African Agricultural Transformation" (TAAT). The goal is to increase farming households' productivity and incomes by giving them access to climate-resilient technologies in 36 low-income African countries, by 2025. The decision to make this new disbursement was taken in Abidjan by the Bank Group’s Board of Directors on Friday 15 July 2022.
"The Bank is well positioned to harness the power of the science, knowledge and innovation needed to catalyse Africa's agricultural transformation through this investment. The Bank already has extensive experience in agricultural development assistance in Africa and this additional funding will help us to consolidate the achievements of TAAT-I," said Beth Dunford, African Development Bank Group Vice President for Agriculture and Human and Social Development.
"TAAT-II will help to address the challenges of strategic and economic diversification and will support implementation of national strategies to boost agriculture and agribusiness to create jobs (green jobs), especially for young people and women," she continued.
Corrections officers at SADC ERM workshop call for strengthened peace-building efforts in Mozambique (SADC)
Peace-building programmes should be strengthened at community level to ensure that everybody participates, and the adoption of non-violent conflict resolution, especially the use of human rights approach, is critical to effectively deal with conflicts. This came out of a five-day training workshop for prisons and corrections services held in Pemba, Cabo Delgado Province in the Republic of Mozambique, to capacitate the officers on how to deal with terrorism conflict in the province. The workshop is part of a series of Southern African Development Community (SADC) initiatives aimed at pacifying the security situation in Cabo Delgado Province which continues to be relatively calm but faces the threat posed by terrorist activities.
The training was held under the SADC Peace Building Support to the Republic of Mozambique being implemented under the Africa Peace Facility, with financial support from the European Union (EU). The SADC Peace Building Support to the Republic of Mozambique complements on-going efforts by the SADC Mission in Mozambique (SAMIM) which was deployed following the approval of the SAMIM mandate by the Summit of SADC Heads of State and Government on 23 June 2021.
Africa can shift to sweet potato amid wheat shortage (SciDev.Net)
The rapidly rising cost of wheat globally is a cue for African countries to shift attention to sweet potato for their baking industry, says Jan Low, a principal scientist at the International Potato Centre.
The Russia-Ukraine war has triggered a wave of disruption of food supplies across Africa and the continent now faces a shortage of at least 30 million metric tonnes of food, especially wheat, maize and soybeans imported from both countries.
Low says turning to roots and tubers, such as sweet potato, which is widely produced within the continent is good policy because it supports local farmers by providing a market for their product; and if adopted widely, saves governments’ much-needed foreign exchange.
Research shows Western lenders create most of African debt crisis (News Ghana)
In a report released last week, Britain-based charity Debt Justice found that African governments owe three times more debt to Western banks, asset managers, and oil traders than to China, and are charged double the interest.
The new finding came after Harry Verhoeven from the Center on Global Energy Policy at Columbia University, and Nicolas Lippolis from the Department of Politics and International Relations at the University of Oxford published a new study in May, which said the rise in African debt due to Chinese lending pales in comparison with the debt burden created by private creditors of other countries over the last decade.
The new findings lay bare the absurdity of the so-called “debt-trap diplomacy” that has been for too long touted by Western politicians and propaganda machines in smear campaigns against China, experts have said.
Africa urged to promote innovative financing solutions to realize climate ambitions (News Ghana)
Experts have called on African countries to promote innovative financing solutions to achieve ambitious climate investment goals and meet the Paris Agreement commitments.
The experts made the call during a joint UN Economic Commission for Africa (UNECA) and World Bank virtual workshop on the development of the Green, Social and Sustainable (GSS) sovereign bond market in Africa that was held on late Tuesday.
Hanan Morsy, Deputy Executive Secretary of the UNECA, told the gathering that ahead of this year’s UN Climate Change Conference (COP27), which is slated to be held in November this year in Egypt, Africa faces a mixed landscape for achieving climate ambitions and Nationally Determined Contributions (NDCs).
How Africa can tame the time bomb that is the ballooning population and improve health (Business Daily)
The growing population in countries with limited resources and low income will result in migration of people and may deprive Africa of highly qualified productive human capital. Internally low-income countries will experience rural to urban migration and this will put pressure on resources.
To stem the rapid population growth and maximise the potential benefits of a favourable age distribution, African countries need to invest in the REEF Framework which entails increased access to reproductive health, equitable education, and sustainable economic freedom and food security.
African countries must aspire to achieve universal access to sexual and reproductive health-care services, including for family planning, information and education as espoused by SDG 3. To achieve this, Africa should invest in meeting the needs of the furthest behind first.
South Sudan, Uganda hold first ever business forum in Juba (The East African)
South Sudan and Uganda are holding their first ever Joint Business Forum in Juba, seeking to boost trade and investment ties “through industrialisation and infrastructure development”.
The three-day forum and exhibition, which kicked off on Tuesday, has attracted over 200 businesspeople from the public and private sectors.
Uganda says the talks will help to identify ways to enhance investment opportunities and the already vibrant trade relations between both countries and consequently improve the livelihood of their people.
Private Sector Foundation Uganda (PSFU) chief executive Stephen Asiimwe says Ugandan businesses are looking to discuss advocacy, and networking, explore new opportunities, showcase products and services, and seek to understand the interventions required to strengthen the trade ties between the two countries.
Impact of G7’s multi-billion dollar plan on Africa’s infrastructure gap (Africa Feeds)
In late June 2022, it was announced at the G7 Summit in Germany that a USD 600 billion lending initiative, the Partnership for Global Infrastructure Initiative (PGII), would be launched to fund infrastructure projects in the developing world, with a particular focus on Africa.
DFIs are increasingly anchoring the infrastructure ecosystem in Africa – serving a critical function for project finance as investment facilitator and a check on capital. DFIs can shoulder political risk and access government protections in a way that others cannot, enter markets others cannot and are uniquely capable of facilitating long-term lending.
The African Union’s 55 member states have stated that their primary funding needs include support in terms of safety and security on the continent, as well help in implementing the African Continental Free Trade Agreement (AfCFTA) and the massive infrastructure investment it needs to be successful.
SADC Challenge Fund for Non-Profit Organizations (fundsforNGOs)
In response to the impacts on women arising from COVID-19, the SADC Challenge Fund is now open to support non-profit organizations and women in business associations that are already supporting the capacity building and/or training of women entrepreneurs to improve their skills in business and product development.
The Challenge Fund is implemented under the SADC Project on Industrialization and Women Economic Empowerment (IWEE) and is funded by the German Ministry for Economic Cooperation and Development as part of the CESARE programme.
The aim is to contribute towards increasing the participation of women-led businesses and female entrepreneurs in selected priority sectors and value chains in line with the SADC Industrialization Strategy and Roadmap (SISR).
For more information, visit https://www.sadc.int/procurement-opportunities/sadc-challenge-fund-non-profit-organizations-supporting-women-economic.
Union Minister Piyush Goyal emphasizes Need For India-Africa Trade and Investment Agreement (Business Standard)
Union Minister for Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textile Piyush Goyal has emphasized upon the need for a trade and investment agreement between India and Africa. India plans to strengthen its partnership with Africa in four areas to fulfil aspirations of both the countries, speaking at the inaugural session of CII-EXIM Bank Conclave on India-Africa Growth Partnership, the Union Minister said. First area is solar power, this will help bring clean energy, energy security and will create jobs in Africa. Second is defence trade and military exchanges in Indian Ocean, manufacturing of armoured vehicles and UAVs. Third is physical & digital infra, helping in IT/Consultancy & Project Exports and the fourth one is healthcare & pharma.
He said, we are working to lead the developing world out of food insecurity, efforts are being made to take quality life and prosperity to the people of India and Africa.
Global economy
WHO calls for action to provide migrant and refugee healthcare (UN News)
Millions of refugees and migrants face poorer health outcomes than their host communities, which could jeopardize reaching the health-related Sustainable Development Goals (SDGs) for these populations.
The warning from the World Health Organization (WHO) comes in its first ever report on the health of refugees and migrants, published on Wednesday.
It calls for urgent action to ensure people on the move can access healthcare services that are sensitive to their needs.
“Whether by choice or by force, to be on the move is to be human and is part of human life. Whatever a person’s motivation, circumstance, origin or migratory status, we must unequivocally reiterate that health is a human right for all, and that universal health coverage must be inclusive of refugees and migrants,” said Tedros Adhanom Ghebreyesus, the WHO Director General, in the forward to the report.
UNCTAD data highlights need to strengthen business ICT statistics (UNCTAD)
As the COVID-19 pandemic has accelerated digital transformation, measuring how businesses are harnessing digital opportunities for economic resilience and sustainable development has become ever more critical.
“As the world becomes more digitally dependent, disparities that put individuals and businesses in developing countries at a disadvantage threaten to accelerate existing inequalities,” said Shamika N. Sirimanne, director of UNCTAD’s technology and logistics division.
“More decisive action is needed to bridge the widening digital and data divides,” she added.
Sri Lanka economic crisis requires ‘immediate global attention’: Rights experts (UN News)
Greater support must be given to Sri Lanka as the country faces economic crisis and political turmoil, a group of UN human rights experts said on Wednesday in an appeal to the international community.
“Sri Lanka’s economic collapse needs immediate global attention, not just from humanitarian agencies, but from international financial institutions, private lenders and other countries who must come to the country’s aid,” they said in statement.
The nine experts expressed alarm over record high inflation, rising commodity prices, power shortages, a crippling fuel crisis and economic collapse, as the country grapples with unprecedented political turmoil.
Items proposed for consideration at the next meeting of the Dispute Settlement Body (WTO)
The WTO Secretariat has circulated a meeting notice and list of items proposed for the next meeting, on 21 July 2022, of the Dispute Settlement Body, which consists of all WTO members and oversees legal disputes among them. The meeting notice is circulated in the form of a document officially called an “airgram”.
Find the meeting notice and item proposal document here.
Global Hub Launched to Eradicate Women's Digital Financial Exclusion and Accelerate Women's Business Ownership (PR Newswire UK)
New Women's Digital Financial Inclusion Advocacy Hub to Champion Equal Access to Digital Financial Services for Women; Initial Efforts to Support Local Coalitions in Indonesia and Ethiopia; as well as Encourage Others to Join the Coalition
NEW YORK, July 20, 2022 -- Women's World Banking and the UN Capital Development Fund today announced the launch of the Women's Digital Financial Inclusion (WDFI) Advocacy Hub, a new global coalition to catalyze collective action to increase women's digital financial inclusion. The coalition aims to close the gender gap in access to digital technology, skills, and digital financial products for women entrepreneurs – particularly in developing countries.
"Three quarters of a billion women around the world are excluded from the formal financial system," said Mary Ellen Iskenderian, President and CEO of Women's World Banking. "Imagine the possibilities if those women had equal access to technology, skills, and financial services. The WDFI Advocacy Hub is a groundbreaking global collaboration that will make those possibilities a reality and close the financial inclusion gap."
How record-setting heat waves in cities across UK, US and mainland Europe could punish economies already reeling from inflation (The Conversation)
Hundreds of millions of people struggled to keep cool amid a sweltering summer heat wave as cities across the U.S. and mainland Europe experienced record-high temperatures. In the U.K., thermometers topped 104 Fahrenheit (40 degrees Celsius) on July 19, 2022, the highest ever recorded.
While all this broiling heat is surely punishing on a personal level, it also has significant impacts on the broader economy.
Time is ripe for India to explore trade deal with AfCFTA: Commerce Secy (Business Standard)
With the signing of the world’s largest free trade area–African Continental Free Trade Area (AfCFTA)--the time is right for India to explore a trade with the union, commerce secretary BVR Subrahmanyan said on Wednesday.
“The African Continental FTA came into force in January last year. I know it's early years, a lot of it has to get operationalized, I think the time has come for India and Africa to also start talking about engaging in a comprehensive economic partnership or a free trade agreement,” Subrahmanyan said at the 17th CII-Exim Bank conclave.
“Officials (from India) will be engaging with some of your colleagues (from African nations) on trade matters to do that…. We can help each other with raw materials, technologies, manufacturing, ideas and potential investment. We can help each other in education, health, in pharmaceuticals, and we can help each other become part of global value chains. And I think that is something that's very important for both of us. We can do that. There is a great feature for our partnership,” he said.
Indonesia meeting represents chance for G20 to build on WTO progress (The Australian Financial Review)
Strategic competition between China and the United States has made global cooperation much harder. Both countries are the source of global uncertainty, but neither has yet walked away from the WTO or global arrangements such as the G20.
The world’s two largest powers account for about 30 per cent of the global economy, and between them have the clout to undermine certainty about the rules. At the same time, countries representing 70 per cent of the global economy want a rules-based order that constrains the major powers.
The already difficult situation has been worsened by Russia’s invasion of Ukraine and the resulting food and energy crises. Recovery from the pandemic is incomplete, and we’re starting to see what a changing climate looks like.
UN Women and Ant Foundation launch “Together Digital” to empower women entrepreneurs in the digital economy (Business Wire)
UN Women and Ant Foundation, today jointly announced the launch of “Together Digital”, a five-year programme to support women-led micro, small and medium-sized enterprises (MSMEs) and empower them to participate and thrive in the digital economy.
“The Together Digital programme will leverage UN Women’s vast expertise in women’s economic empowerment, as well as the Ant Foundation’s wide network and track record in entrepreneurship and digital empowerment,” said Sarah Knibbs, Deputy Regional Director of UN Women Regional Office for Asia and the Pacific. “We are pleased to enter this partnership with the Ant Foundation, with whom we share a mutual interest in the digital empowerment of women.”
Against this backdrop, the Together Digital programme aims to help narrow the gender gap in access to digital technology, and to support the digital empowerment of women. Through training, access to markets and resources such as funding and knowledge exchange opportunities, the programme will support women entrepreneurs in MSMEs to establish, maintain and expand their businesses in the digital era.
Green Climate Fund Board approves new climate funding, bringing assets under management to USD 40 billion (ReliefWeb)
The Green Climate Fund (GCF) Board has approved four new climate projects valued at USD 380.7 million in GCF funding and USD 1.0 billion with co-financing, whilst also launching the process for the Fund’s replenishment for the 2024-2027 period. With the newly approved projects, GCF’s portfolio now stands at 200 projects with a total value of USD 10.8 billion in GCF resources, USD 40.3 billion including co-financing.
Held in GCF’s host city of Incheon, the Board meeting was the first to be held in-person in the Republic of Korea since November 2019. During the four-day meeting, the Board also adopted new policies including an adaptation framework that will guide GCF’s approach and scope for providing adaptation support, and a climate rationale policy that will ensure a transparent and consistent approach to climate impact potential for funding proposals.
A formal decision was also made to launch the second replenishment for GCF for 2024 – 2027 (GCF-2). This launch will be followed by consultations on the strategic programming direction for GCF-2 as the GCF-1 programming period (2020 - 2023) ends next year. A pledging conference for the replenishment will be held in September 2023.
President Biden Plans African Leaders Summit Mid-December – OpEd (Eurasia Review)
As a further major step to strengthen relations, President Joe Biden plans to hold African leaders in the White House mid-December. According reports, the U.S.-African summit will discuss the emerging global order, changing geopolitical and economic issues and will also offer enormous funds for various development projects as well as for good governance and human rights.
Under the plan, Washington says the summit will focus on existing challenges, especially those relating to peace and security, food security to climate change and poverty alleviation directions across Africa.
The high-level dialogue is expected to set the scene for reviewing the opportunities for the United States and African public and private sector leaders, how to strengthen the economic partnership between the United States and Africa related to large-scale investments in key sectors.
Cost of living crisis hits poorest the hardest, warns UNCTAD (African Business)
UNCTAD’s analysis shows that a 10 per cent increase in food prices will trigger a five per cent decrease in the incomes of the poorest families, roughly equivalent to the amount those families would normally spend on healthcare.
As consumers try to reduce their spending, they will pay a high price if they buy cheaper, but unsafe products. The United States reports 43,000 deaths and 40 million injuries per year associated with consumer products, with yearly costs of over $3,000 per capita.
While more developed countries have put in place product safety frameworks, including laws, enforcement institutions, recall mechanisms and communication campaigns, developing countries with weaker systems, UNCTAD said, are less able to regulate the scourge of unsafe products.
Summer steps forward for US and global trade digitisation: Prepare to swoon? (TXF)
Digital trade in the US took what is being described as a big step forward on 13 July when the Uniform Law Commission (ULC) passed several amendments to the Uniform Commercial Code (UCC) addressing digital assets, terminology to account for digital records, electronic signatures, and distributed ledger technology, providing rules for electronic negotiable instruments, and clarifying the rules for UCC applicability to hybrid transactions involving both goods and services. The measures still need to be taken up by state legislatures. And that’s the key – it’s a federal solution.
The issue in the US has been that there has never been a federal solution to the handling of commercial trade documents. “The breakthrough was really last year where the UK secured G7 ministerial commitment, which of course includes the US,” says Chris Southworth, co-chair of the Legal Reform Advisory Board of the ICC Digital Standards Initiative (DSI). “The breakthrough is that the US government has now identified a solution which is the UCC and is now actively progressing on reforming the law to enable those documents to be handled across state boundaries.”
Ministers of Africa and the Americas hold first summit to enhance cooperation on agrifood issues (Jamaica Observer)
Ministers of agriculture, national senior officials in the fields of environment, science and technology, heads of international organisations and private sector representatives will meet this month during the first Summit of Africa and the Americas, which will seek to enhance cooperation between the two continents on agrifood systems amid global threats to food security.
The summit is being organised by IICA, the African Union Development Agency — New Partnership for Africa's Development (AUDA-NEPAD) and AGRA, who agree that both continents face common challenges in advancing agrifood system transformation and will benefit from sharing of experiences to foster collaboration within the framework of South-South Cooperation.
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Cargo thieves are going after hair extensions and wigs, as SA’s imports soar (Business Insider South Africa)
Wigs and hair extensions imports are increasingly becoming prone to cargo theft and hijackings once they reach South Africa, with these items becoming one of the most insured goods likely to be stolen. The South African illicit trade market is primarily to blame for the increasing theft of wigs and hair extensions, Marika van Rhyn, Hollard Marine’s senior business development manager, said. Globally, the hair extension market is valued at around R41 billion and is expected to grow to R59 billion in 2028, at a rate of 5.3%, market research house Fortune Business Insights states. It said a growing fashion sense and aspiration for luxury by South African consumers, and others in the UAE and Saudi Arabia, are mainly fuelling the hair extension markets of the Middle East and some African regions.
Over the past four years, South Africa’s imports for hair extensions jumped 64%, with the country’s annual imports for hair products in general reaching around R1.1 billion, Van Rhyn said.
The thefts commonly occur at the ports, when the goods get offloaded after arrival, or in transit to their final destinations in hijacking incidents.
Government quietly setting up a new state-owned gas company: report (BusinessTech)
The South African government is quietly setting up a new state-owned company that will focus on gas lines between South Africa and Mozambique, a new report by amaBhungane reveals. Energy minister Gwede Mantashe has been pushing for gas to be used to plug South Africa’s widening energy gap – this despite a global effort to move away from fossil fuels toward renewable energy programmes. According to amaBhungane, the Central Energy Fund (CEF) is now in the process of establishing a new state-owned gas trading entity that will primarily source gas from Mozambique.
Car tax changes proposed for South Africa (BusinessTech)
The opposition Democratic Alliance has called for the fast-tracking of proposals in the government’s automotive green paper, which it says will help with the adoption of electric vehicles in South Africa. The DA has also called for the scrapping of all import duties on electric vehicles (EVs) to the country, which will allow motorists to purchase reasonably-priced electric vehicles in the face of growing petrol prices, it said. Electric vehicles currently face import tariffs of 25% compared to the 18% paid on traditional internal combustion engine (ICE) vehicles. “It makes no sense whatsoever that import duty exists on electric vehicles, except to protect big manufacturers in South Africa who refuse to transition to EVs and hybrids, and keep South Africans on petrol and diesel to keep raking in fuel taxes,” said the DA’s Dean Macpherson. “While many countries offer cash incentives against the purchase of EVs, the least we could do in South Africa is reduce the cost of EVs to consumers by a massive 25%. This would be a non-cash incentive which would be manageable by government.”
Kenya: Govt launches procedures to secure borders (Capital News)
The government has launched the the Standard Operating Procedures (SOP) for points of entry and exit which are geared towards protecting the country’s borders and promoting legitimate trade. State Department of Interior and Citizen Services Principal Secretary Karanja Kibicho said that this is a momentous step for Kenya – one that is going to have a big impact on how one travels, invest in security measures and conducts business with neighbours and other countries globally. Kibicho said that these up-to-date, policy-backed, innovative and technology-centered standard operating procedures will guide in the coordination of operations and information and resource-sharing among border agencies.
In a speech read on his behalf by Nairobi Regional Commissioner Kang’ethe Thuku at a Nairobi hotel on Tuesday during the launch, Kibicho said that since the inception of coordinated border management, border officials have been conducting joint operations without a comprehensive guiding tool and to remedy this situation, a guide with modern and innovative means of border management had to be developed.
How Kenya polls could slow cargo, trade flows (Business Daily)
In 2020, the Covid-19 pandemic and subsequent geographical lockdowns significantly slowed logistics activities. Investments in international trade dropped substantially. Barely two years later, Kenya’s logistics industry is again on the brink of negative fallout from the upcoming General Election. Time has, on more than one occasion, proven that the heat from political campaigns affects the flow of goods. The worry amongst the business community stems from the negative impact Kenya’s 2007/2008 post-election violence had on the economy.
Currently, the Port of Mombasa is experiencing a slowdown in transit volumes ahead of the August 9 elections. It has also been noted that there is an increase in shipments destined for the Great Lakes region that would usually go through Mombasa Port, being diverted to the Dar es Salaam Port in Tanzania.
Many industries take a cautious stand on operations as they wait for “things to play out” before making serious investments. On the other hand, investors hold on to their cash before making a serious commitment, and neighbouring countries redirect their cargo to other ports for fear of cargo delays or disruptions. Slow economic activity and election campaign activities also lead to a reduction in lending activity by banks. Since they are usually the hardest hit in terms of risk, lending institutions limit the amount of credit they give to investors and companies such as cargo traders, affecting the operational efficiency of many depending on such sources for capital flow.
Kenya tracks Nigeria dirty cash, seizes Sh15 billion (Business Daily)
When Nigerian Mauzu Bala landed at the Jomo Kenyatta International Airport in December 2020 carrying a bag full of undeclared money, the man who claimed to be an agent for a Dubai jeweller did not anticipate a long court fight. Mr Mauzu landed carrying $880,000 (Sh100 million), 60,000 Euros (Sh7.74 million) and 63,000 Naira (Sh17,010) in his handbag. The Nigerian had jetted into the country on a Kenya Airways flight from Lagos and was waiting for a connecting flight to Dubai. The funds were swiftly confiscated after the Assets Recovery Agency (ARA) suspected them to be part of a money laundering scheme on its radar. Since then, State agencies have shone more spotlight on Nigeria, seizing about Sh15 billion from individuals and companies from the West African nation.
The bulk of the money is suspected to be from card fraud or remittance done by payment service providers at a time Kenyan authorities are cranking up the fight against money launderers who have turned Nairobi into their playground.
A report by the Sentry titled Kenya Illicit Finance Risks and Assessment has listed domestic corruption, terrorist financing, environmental crimes, illegal trafficking, tax evasion, and the misuse of digital finance such as mobile banking and cryptocurrency as some of the risks the country faces.
Exporters urged to exploit benefits of Walvis Bay (The Herald)
LOCAL exporters should utilise the Walvis Bay Dry Port in Namibia to enjoy economies of scale presented by that route as trade under the African Continental Free Trade Area (AfCFTA) grows, an official said yesterday. The AfCFTA, to which Zimbabwe is signatory was operationalised on January 1, 2021, making historic strides towards continental economic integration. Zimbabwe has deposited its instrument of ratification expected to pave the way for the country’s full participation in the estimated US$3,4 trillion trading bloc and continent wide market of about 1,3 billion people. In an interview, Shipping and Freight Forwarders Association of Zimbabwe (SFFAZ) chief executive officer Joseph Musariri said in light of the AfCFTA, Zimbabwean exporters need to tap into the opportunities being presented by the Walvis Bay Dry Port, which the Government has established.
Nigeria’s Economy Reaps Benefits of Real-Time, Digital Banking Transformation – $6 billion of Additional GDP Growth Forecast by 2026 (TechEconomy.ng)
Nigeria’s real-time and digital payments revolution is driving economic growth and financial inclusion at unprecedented levels for the largest African economy, according to the 3rd edition of Prime Time for Real-Time, published by ACI Worldwide, in partnership with GlobalData, a leading data and analytics company, and the Centre for Economics and Business Research (Cebr).
The report – tracking real-time payments volumes and growth across 53 countries – includes an economic impact study for the first time, providing a comprehensive view of the economic benefits of real-time payments for consumers, businesses, and the broader economy across 30 countries.
The report reveals Nigeria as Africa’s undisputed real-time and digital payments leader. The country recorded 3.7 billion real-time transactions 2021 – ranking 6th in the league table of the world’s most developed real-time payments markets – behind India, China, Thailand, Brazil, and South Korea.
In 2026 real-time transactions are forecast to rise 8.8 billion in 2026, a 5-year CAGR of 18.6%. This will help unlock $US 6 billion of additional GDP in 2026, representing 1.01% of the country’s GDP.
“Nigeria is fast becoming a posterchild across Africa for the successful digital transformation of the country’s economy,” Santhosh Rao, Head of Middle East, Africa, and South Asia, ACI Worldwide. “Accelerated by the Covid-19 pandemic, Nigerians increasingly expect higher speeds, greater simplicity, and modern thinking from financial service providers. While cash is still being used widely, the shift towards greater adoption of digital and real-time payments services is testament to the success of government regulators in fostering rapid growth in digital openness, particularly payments.”
Nigeria Must Maximise WTO Fisheries Subsidies, Agreements — Okonjo-Iweala (Leadership News)
The director-general of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala, yesterday urged Nigeria to step up efforts to leverage on the new WTO Agreements on Fisheries Subsidies and IP waiver on local vaccine production. Okonjo-Iweala said the revised agreement for new global rules is now tailored to curb harmful fishing subsidies and curtail post-harvest losses and a country like Nigeria and other African countries will greatly benefit from it.
WTO members had successfully concluded the 12th Ministerial Conference (MC12) in Geneva on 17 June, securing multilaterally negotiated outcomes on a series of key trade initiatives.
The WTO DG, who was received by the minister of state for industry, trade and investment, Amb Maryam Katagum, at the ministry’s headquarters in Abuja, said she was cautiously optimistic that agreements on issues such as a limited IP waiver for COVID vaccines as well as a decision to curb harmful fisheries subsidies that allow big industrial rigs to plunder the oceans – depleting global fish stocks and harming food security for billions of people, would be fully implemented by member states including Nigeria.
Dr Okonjo-Iweala also canvassed support from local manufacturers to guard against imports of vaccines and other pharmaceutical products. She encouraged the country to strengthen trade ties with other African neighbours with a focus on fisheries subsidies and local vaccine production and maximizing the benefits of the African Continental Free Trade Agreement (AfCFTA). On her part, Amb Maryam Katagum, said the Agreement holds great benefit for Nigeria as it will enhance food security and increase source of livelihood particularly, for lower income families in rural and coastal areas, more so, as it protects global fish stocks in a manner that also recognises the needs of fishers in developing and least-developed countries (LDCs).
Ghana, Burkina Faso to promote trade and commerce (News Ghana)
Ghana and Burkina Faso, through their respective Chambers of Commerce and Industry, seek to promote trade and commerce through exhibition of products in Accra. The five-day event, scheduled for September 27 to October 2, 2022, will focus on creating a platform and opportunities for Small and Medium Enterprises (SMEs) and Small and Medium Industries (SMIs) of both countries. The event would not only showcase Burkinabe products but bring together government officials, investors, private sector players to create conditions for a harmonious integration of Burkina Faso economy and vice versa with special attention on tourism and culture, commerce, and economic sectors.
This was said during the launch of Ghana National Chamber of Commerce and Industry (GNCCI) and Burkina Faso Trade Fair on the theme: “Strengthening economic and trade partnership between Burkina Faso and Ghana: which synergies of actions in the current context of the implementation of African Continental Free Trade Area (ACFTA).”
Gov’t Embarks on Export Promotion to Spur Growth in Manufacturing Sector (SoftPower News)
Government is focusing on promoting exportation and more of import substitution in order to support and spur growth in the Manufacturing sector. According to the Minister of State for Trade, Industry and Cooperatives, David Bahati, government is encouraging import substitution and increase of exports. He said the manufacturing sector is key to the development of Uganda’s economy. Bahati revealed that the industrialisation sector contributes 27.4% of the GDP, and manufacturing alone contributes 16.4%.
Surging prices double Tunisia’s food trade deficit in first half (Reuters)
Tunisia’s food trade deficit doubled to 1.559 billion dinars ($496.99 million) due to the higher cost of imports of cereals and sugar in the first half of the year compared to the same period last year, the state Agricultural Observatory said on Tuesday. The food trade deficit was 806 million dinars in the first half last year. Tunisia’s total trade deficit widened by 56 % to $3.66 billion in the first half of 2022 , the state Institute of Statistics said this month.
Morocco calls for leveraging more private funds in African infrastructure (The North Africa Post)
Morocco reiterated its call for the setting up of a new African investment model that leverages capital from private and institutional investors to make up for a drop in public investments on the back of the successive crises. Speaking at an event by Africa50, an infrastructure investment platform operating under the umbrella of the African Development Bank (AfDB), Morocco’s finance minister Nadia Fettah Alaoui said private funds are needed to finance African infrastructure projects more than ever, especially in the current context where fiscal responses have been undermined by the response to Covid and inflationary pressures.
The Moroccan minister called for more intra-African solidarity and recalled Morocco’s investment effort in Africa in the sectors of banks, insurance, telecoms, construction, energy and agriculture. “This cooperation is set to be strengthened with the launch of the African Continental Free Trade Area,” she said. Echoing her, AfDB President and head of Africa50 Akinwumi Ayodeji Adesina said Africa needs private funds to meet infrastructure investments financing needs estimated at between 68 billion and 108 billion dollars.
African trade and integration
African Union Unveils Digital AfCFTA & Vaccination Platforms at 2022 “Boma” (AU)
The Deputy Chairperson of the African Union, H.E. Monique Nsanzabaganwa, opened the Boma of Africa event on 8th July 2022 to crown the activities marking this year’s Africa Integration Day. The theme of the Boma this year was, aptly, “Taking Stock of the African Century”, reflecting increasing interest in the belief that Africa’s rise in the 21st century as envisaged under Agenda 2063 will be globally definitive. The 2022 Boma was convened jointly by the African Union and AfroChampions.
Reflecting the balance between deliberation and action, the Boma was segmented into three parts. Two parts focused on the launch of major practical initiatives driving integration on the continent: a Common Vaccine Passport (www.africacdc.org/trusted-vaccines) embedded in continental eHealth Backbone (www.panabios.org) and a platform for the AfCFTA Digital Trading Corridor (www.afcfta.app).
The results of a consultative process ahead of the launch of the AfCFTA Hub digital trading ecosystem platform by the AfCFTA Secretariat were presented in the forms of video showing strong support from major logistics companies such as RwandAir, Kenya Airways, Ethiopian Airlines and Asky. Continental retail and distribution companies like MaxMart, Melcom, Walmart Africa and Naivas were also successfully engaged. On the digital, financial services, and fintech fronts, companies that participated in the launch of the AfCFTA Hub included M-Pesa, PAPSS, Vodacom, Orange, WebbFontaine, Scanning Systems, and Standard Bank. Input into the development finance prospects came from the African Development Bank (AfDB).
AfCFTA’s success hinges on frictionless online trading environment (ITWeb)
The African Continental Free Trade Area (AfCFTA) is expected to uplift e-commerce and digital payments in Africa. However, its success will largely hinge on governments stepping up their policies and frameworks to build a safe and frictionless digital trading ecosystem. After six years of planning, strategy and coordination, the AfCFTA became effective on 1 January 2021. Now just 18 months since its inception, payments ecosystem players believe creating a conducive regulatory environment is the next critical hurdle – and probably the most difficult part of its implementation.
Emmanuel Khisa, project manager of Smart Africa, tells ITWeb that while the organisation recognises that online selling would be a driving force of the AfCFTA, it also acknowledges the myriad of challenges faced by e-commerce and cross-border payments players on the continent.
“Cross-border payments and the volatility of national currencies is one of the main challenges. E-merchants also face antiquated customs procedures, with long delays at borders; bad transport infrastructure for deliveries, which excludes most rural areas; national non-tariff barriers that discriminate against foreign firms (like tax regulations which distinguish between local firms and importers); the ‘digital divide’ which prevents many citizens from accessing the internet,” explains Khisa.
According to Khisa, new laws and policies introduced by governments should seek to bring together the national central banks, and envision the collaboration of private banks and switching systems, as well as e-commerce initiatives.
Do central bank digital currencies have a future in Africa? (African Business)
Countries across Africa are looking to use central bank digital currencies (CBDCs) to overcome infrastructural problems affecting the banking sector. And far from being motivated by a desire to take advantage of cryptocurrencies as a ‘hyper-capitalistic technology’ in the manner of millions of enthusiasts at the start of the decade, their object is to promote financial inclusion. By using the technology behind cryptocurrencies they aim to boost bring financial services to the hundreds of millions of Africans without bank accounts, facilitate domestic and cross-border payments and increase trade.
The CBDC model will be very advantageous for Africa because it allows anybody to trade, it doesn’t need an internet connection, financial policies can be implemented much quicker, taxation and accountancy are simplified and, most importantly, in CBDCs there are no fees of transfer,” says Richard Dennis, CEO of TemTum Group, a blockchain provider, whose company advises central banks in Africa on how to implement the CBDC model.
Africa needs more private funds for infrastructure investments - Africa50 CEO (Reuters)
African countries need to leverage more private funds to meet infrastructure financing needs estimated at between $68 billion and $108 billion annually, the chief executive of Africa50, an infrastructure investment offshoot of the African Development Bank, said on Tuesday in Marrakech. Leveraging more private capital to finance infrastructure projects, as part of public-private partnerships, would help free public funds to projects shunned by the private sector, CEO Alain Ebobissé said on the eve of the launch of a U.S- Africa business summit. The U.S. Trade and Development Agency (USTDA) had planned $26 million last year to fund feasibility studies of African investment projects with a potential to generate $17 billion in financing, the agency’s director, Enoh Ebong, told Reuters.
US-Africa Business Summit in Marrakech: four questions to the CEO of Corporate Council on Africa (MAP)
The 14th edition of the US-Africa Business Summit kicks off on Tuesday in Marrakech, at the initiative of the “Corporate Council on Africa” (CCA), under the theme “building the future together”.
In an extensive interview with the Moroccan News Agency (MAP) in Washington, she talked about the main topics and objectives of the summit, its significant after two years of the pandemic and in a context of increased geopolitical tension and risks of economic fragmentation with important impact on Africa, and the role of private sector and the need of more robust public-private partnership to ensure sustainable and inclusive growth. Ms. Liser is the first woman to lead the Council since its founding in 1993. She brings to her role a strong track record of working with the private sector to translate policy into action. Before her current role, she was the Assistant U.S. Trade Representative for Africa since 2003.
Collaboration between governments and the private sector is critical to Africa and the U.S. building forward together around strategic sectors and effectively addressing a range of global challenges. For example, the U.S. government and private sector worked collaboratively with African nations and private sector partners to meet the unprecedented challenges caused by the COVID-19 pandemic. Ensuring more equitable vaccine access has been a key first step that has offered businesses in sectors ranging from health to ICT a unique opportunity to work together to meet Africa’s public health needs.
Cargo charters: Is the future promising for Africa? (Logistics Update Africa)
Africa’s air cargo market, like those in other geographies, has spent the last few years navigating through extreme turbulence caused by Covid-19, with limited and fluctuating capacity affecting the efficient movement of cargo to, from, and within the region and posing unique challenges for certain key trade lanes, commodity verticals, and market stakeholders.
As the cargo chartering industry is recovering from the pandemic, the air cargo business is expected to grow and demand to climb. The cargo chartering sector aims at expanding its footprint by growing its cargo team in African countries with new offices and cargo charter brokers.
African airlines stare at $4b loss over costly fuel (The East African)
African airlines are expected to record $4.1 billion loss this year on the back of expensive fuel that is eroding the gains made by a recovering business. Africa Airlines Association (AFRAA) says expensive jet fuel and other expenses involved in running the airlines will weigh down on the profits.
“Full-year revenue loss for African airlines for 2022 is estimated at $4.1bn, equivalent to 23.4 percent of the 2019 revenues,” said AFRAA. International Air Transport Association (IATA) had earlier warned that rising jet fuel prices were likely to cause airfares to increase this year, as airlines grapple with higher operating costs. “We have had to adjust our fares because of expensive fuel that has increased our operation cost,” said Jambojet chief executive officer Ndegwa Karanja.
African Union urges farmers to boost food production (DW)
Food security dominated the agenda at the 41st Ordinary Session of the Executive Council of the African Union in Zambia’s capital Lusaka. The summit’s theme of ”Building Resilience in Nutrition on the African Continent” highlighted the ongoing food challenges that have gripped Africa. A combination of several factors, including a three-year drought in the Horn of Africa, the 2020 locust swarms, Ethiopia’s Tigray conflict, the economic effects of the COVID pandemic, and the war in Ukraine, are all piling on pressure on Africa’s food systems. According to the UN, 278 million people in Africa lacked access to adequate food in 2021 — before Russia invaded Ukraine.
Ambassador Josefa Sacko, AU commissioner for agriculture reminded delegates of the impacts of Russia’s war in Ukraine, involving two of the biggest global producers of staple cereals, oil, and fertilizer. “We know that our continent is really dependant on imports, which we, as the African Union, if this is the agenda we want, we have all the advantage to produce, ourselves and we should stop all this importing [of] food from outside.”
The African Development Bank Group’s Board of Directors has approved 24, fast-track programs to help Africa mitigate rising food prices and inflation caused by Russia’s war in Ukraine, climate change and the Covid-19 pandemic. The first round of approvals is part of the Bank’s $1.5 billion African Emergency Food Production Facility, established in May to boost food security, nutrition, and resilience across the continent. The facility will provide 20 million African smallholder farmers with certified seeds and increased access to agricultural fertilizers. It will also support governance and policy reform, which is expected to encourage greater investment in Africa’s agricultural sector. The African Emergency Food Production Facility will enable African farmers to produce 38 million additional tons of food over the next two years. This is food worth an estimated $12 billion.
EU commits to assist Africa to achieve food security (SAnews)
President Cyril Ramaphosa has welcomed European Union (EU) Council President, Charles Michel’s pledge that commits the European Union to supporting Africa’s efforts to achieving food security. The pledge will also help to decrease the continent’s dependence on agricultural inputs that are exported from elsewhere in the world. “In this regard a joint project plan was agreed to assist Africa in developing its own fertiliser production capacity. The commitment follows positive reception to President Ramaphosa’s proposal to the G7 countries at the recent G7 summit hosted in Germany, that Africa be enabled to invest in developing its fertiliser to deal with food insecurity,” the Presidency said in a statement.
The South Africa-European Union (EU) Strategic Partnership functions within the framework of the Trade, Development and Cooperation Agreement (TDCA), which was ratified in 2004. The Presidency said that the EU is South Africa’s largest trading partner as a bloc. “Since the adoption of the Trade, Development and Co-operation Agreement (TDCA), total trade increased from R150 billion in 2000 to R843 billion in 2021. Exports to the EU increased steadily over the years, growing from R64 billion back in 2000 to R482 billion in 2021. “During the same period, imports from the EU also increased from R86 billion in 2000 to R361 billion in 2021,” the Presidency said.
Climate Change Experts Give Final Nod to Resilience Plan; Share Best Practices on Adaptation (COMESA)
The COMESA Regional Resilience Implementation Plan and Resource Mobilization Strategy is nearing completion following final review by experts in climate change, resilience, disaster risk reduction and management, drawn from 14 Member States, Regional Economic Communities (RECs) and the African Union Commission. At the same time, country focal points for the Nationally Determined Contributions (NDCs) from these Member States and organizations met and shared best practices in implementing the Paris Agreement on climate change and the pledges their countries made to reduce greenhouse gas emissions.
The financing for NDC implementation, opportunities and challenges in scaling up was one of the main subjects in focus. This meeting was part of ongoing COMESA support to the Member States to implement their NDC commitments and contribute to the attainment of the Paris Agreement goals.
Zambia’s Acting Permanent Secretary in the Ministry of Green Economy and Environment Mr Ephraim Shitima, who addressed the meeting urged the member States to review the implementation status of NDCs and recommend policies to improve it. “The opportunities for NDC implementation outweigh the challenges, therefore we need to utilize all the available opportunities on finance, technology transfer, capacity building and to achieve the setout targets,” he said.
Africa needs to promote its ‘blue economy’ (China Daily)
In Africa, the “blue economy”-the sustainable use of ocean and coastal resources to improve livelihoods and employment-is one of the most untapped sources for fueling economic growth and development. Yet 64 percent of the continent is covered by freshwater bodies and ocean ecosystems, and 38 out of the 55 African Union member states are coastal or island states, according to the AU Commission. On the other hand, some of these African countries with access to freshwater bodies such as rivers and lakes are on the verge of experiencing humanitarian catastrophe emanating from climate change-related issues such as famine.
Identifying opportunities in green business for UK-Africa trade and investment (GOV.UK)
Africa is one of the most vulnerable regions to the impacts of climate change (African Development Bank Group, COP 25, December 2019) despite having relatively low contributions to global emissions. It faces huge collateral damage posing substantial risks to its economies, food systems, and livelihoods. Important challenges that African countries face from climate change include: the impact on food security and livelihoods from reduced agricultural production and productivity the limited access to capital, technology and skills for economic adaptation and transition limited governance and institutional capacity to deal with conflict over scarce resources and displacements arising from extreme climate events While these challenges are severe, African countries have an opportunity to be an important part of the solution to the climate change challenge and contribute towards global Net Zero. This can be through unlocking the potential of renewable energy, climate smart agriculture and smart manufacturing, for instance. The UK, as a leading provider of green products and services, is in a strong position to help Africa seize the opportunity to build sustainable, green, inclusive and resilient businesses to drive the transition, which has become increasingly important in the context of climate change.
Global economy
Unsafe products exact a high price on consumers globally (UNCTAD)
Billions of people face the greatest cost-of-living crisis in a generation due to rising food and energy prices amid tighter financial conditions. Vulnerable consumers are in a dire situation. UNCTAD’s analysis shows that a 10% increase in food prices will trigger a 5% decrease in the incomes of the poorest families, equivalent to their health expenditure. As consumers try to reduce their spending, they will pay a high price if they buy unsafe products. The United States reports 43,000 deaths and 40 million injuries per year associated with consumer products, with yearly costs of over $3,000 per capita. “Governments must strive to continue and succeed in their long-term mission of protecting their consumers, a mission of renewed relevance today,” said UNCTAD Secretary General Rebeca Grynspan at the organization’s intergovernmental meeting on consumer protection held on 18 and 19 July.
Keeping consumers safe is a top priority for governments around the world. UNCTAD research shows that general safety requirements and liability regimes embedded in laws, along with standards, are the cornerstones of consumer product safety frameworks around the world.
It’s time for public-private partnerships to drive digital trade in the most vulnerable nations (Trade for Development News)
COVID-19 accelerated digitization, digital entrepreneurship, and businesses’ adoption of digital technologies even in poor developing nations. This digitization in LDCs happened in parallel with global technology companies displaying interest to go beyond larger emerging markets and promote digital trade and foreign direct investments (FDI) in the poorest nations.
Public and private sectors bring together complementary assets and capabilities to promote digital trade: development agencies have relationships with governments and experience in and resources for addressing the proverbial last mile (such as with underserved segments and rural areas), while the private sector has technologies, capabilities, and first-hand expertise on business models that accelerate development impacts.
How to then optimize and focalize PPPs to serve the needs of LDCs? Here are seven ideas.
Members share experiences on measures adopted to ease trade in COVID-19 essential goods (WTO)
Presentations highlighted concrete trade measures taken in the context of the pandemic in order to ease the importation and supply of certain medical and hygiene goods central to the COVID-19 response, such as suspension of domestic duties, tariff concessions, simplification of customs procedures at ports and airports, and relaxation of import regulations and standards. Members explained the choices underpinning these measures as well as their duration and impact. They agreed on the importance of adopting a flexible and non-prescriptive approach to the definition of goods that could have an impact on COVID-19 recovery.
Key UN forum closes with ‘enthusiasm, passion and high-energy’ to reach the SDGs (UN News)
“We have advanced the substantive programme of the [Economic and Social] Council (ECOSOC) and initiated concrete foundational action to implement the decisions of the General Assembly” in resolutions on strengthening the HLPF and ECOSOC, said the body’s president, Collen Kelapile.
Although the COVID pandemic continues, “we are moving on in the road to recovery and…looking far ahead, beyond today’s daunting challenges and crises,” he said. Reversing the pandemic’s negative impacts on the likelihood of reaching the ambitious SDGs; transforming socio-economic and financial systems; addressing the ripple effects of the war in Ukraine on food security and energy supply; and halting climate change, pollution and biodiversity loss, are “a calling we must work much harder to achieve,” the ECOSOC president added.
The ECOSOC President spoke about the need to bridge the financing gap by reforming international debt and taxation architecture.
Nations implored to implement Sustainable Development Goals (SAnews)
Minister in the Presidency, Mondli Gungubele, has appealed to nations to urgently adhere to the agreed international commitments to guarantee food security and limit global warming to 1.5°C as outlined by the Sustainable Development Goals (SDGs). The SDGs are the blueprint to achieve a better and more sustainable future for all. They address the global challenges including poverty, inequality, climate change, environmental degradation, peace and justice. Addressing the United Nations General Assembly Hall during the commemorations of International Nelson Mandela Day, he noted that the number of people going hungry is on the rise, a situation exacerbated by skyrocketing food prices, even for the most basic of goods such as sugar, vegetable oils, dairy products, wheat, and cereals.
The United Nations Development Programme (UNDP), in partnership with India’s State Government of Telangana, announced Data in Climate Resilient Agriculture (DiCRA) as the latest addition to the Digital Public Goods Registry. Powered by Artificial Intelligence, the platform is geared towards strengthening food systems and food security. The impact of climate change on agriculture is multifold, affecting crop yield, nutritional quality and livestock productivity. Using remote sensing and pattern detection algorithms, DiCRA is able to identify farms that are resilient to climate change and those that are highly vulnerable. In particular, it harnesses open-source technologies to facilitate analysis and insights sharing on climate resilience, based on empirical inputs crowdsourced from hundreds of data scientists and citizen scientists on best performing farms.
As co-host of the Digital Public Good Alliance, UNDP is accelerating efforts to surface new technological frameworks required to drive climate adaptation and mitigation to achieve the goals outlined in the Paris Agreement on climate change. DiCRA now joins more than 100 digital solutions that adhere to privacy and other applicable laws and best practices to help attain the Sustainable Development Goals (SDGs).
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Key Renewable Energy Market Drivers in South Africa in 2022 (Energy Capital & Power)
The need to transition to cleaner sources of fuel in South Africa is made more paramount with the ongoing energy crisis.
With load shedding significantly impacting South Africa’s economy, a target set by the government to deploy 11.8 GW of large-scale renewable energy capacity by 2030 is driving market interest for investors, independent power producers (IPP) and international energy companies.
Ghana confirms its first outbreak of highly infectious Marburg virus (Reuters)
Ghana has officially confirmed two cases of the Marburg virus, a highly infectious disease similar to Ebola, its health service said on Sunday, after two people who later died tested positive for the virus earlier this month.
"(Ghanaian) health authorities have responded swiftly, getting a head start preparing for a possible outbreak. This is good because without immediate and decisive action, Marburg can easily get out of hand," said Matshidiso Moeti, WHO Regional Director for Africa.
The two patients in southern Ghana's Ashanti region both had symptoms including diarrhoea, fever, nausea and vomiting, before dying in hospital, the WHO said.
Kenya: UN expert hails historic reparations ruling in favour of indigenous peoples (UN News)
An independent UN human rights expert on Monday hailed a decision by the African Court on Human and People’s Rights, to award reparations to the Ogiek indigenous peoples, for harm that they suffered due to “injustices and discrimination.”
The historic ruling follows a landmark judgment delivered by the Court on 26 May 2017, finding that the Government of Kenya had violated the right to life, property, natural resources, development, religion and culture of the Ogiek, under the African Charter on Human and Peoples’ Rights.
Creecy criticises lack of climate finance progress since COP26 (Engineering News)
South Africa’s environment Minister Barbara Creecy has criticised the lack of progress, since COP26, in the area of climate finance support for developing countries, arguing that there has been a failure to promote “adequate ambition”.
Quoting the United Nations Framework Convention on Climate Change standing committee on finance, Creecy highlighted that developing countries needed between $5- and $11-trillion to meet their climate objectives. However, an Organisation for Economic Cooperation and Development report shows that only about $80-billion has been mobilised.
“The only way we can re-establish credibility in financial provision is to set a realistic goal for developed countries to mobilise at least $1-trillion per annum to assist developing countries meet their climate change objectives,” Creecy said at the dialogue, which is being held as part of preparations for the COP27 talks, scheduled for Sharm El-Sheikh, Egypt, in November.
'Why Nigeria must design export strategy to harness AfCFTA' (Guardian Nigeria)
Speaking in Abuja at a five-day training programme aimed at equipping participants with relevant knowledge, tools and skills required to develop their export business in line with global best practices and in tandem with the AFCFTA, Ojadi explained that the absence of clear-cut guidelines on exports may hinder Nigeria from benefitting maximally from the trade deal when it takes operational.
Nigeria must design to strategy spell out the processes that guide products that are meant for export, a faculty member of the Lagos Business School (LBS), Dr Frank Ojadi has said.
“I was examining the coastal shipping which ought to boost the African Continental Free Trade Area (AfCFTA) and I discovered that high costs in our ports and shipping are contributing to our not being competitive enough to export products. I think that coastal shipping will help in properly placing Nigeria to reap bountifully from the AfCFTA. Infrastructural deficits that are associated with shipping will affect trade going to different parts of the world from Nigeria.”
AfDB Board Approves $134 Million Loan to Boost Local Food Production (Farmers Review Africa)
The Board of Directors of the African Development Bank Group, on Friday approved a $134 million loan for the National Agriculture Growth Scheme – Agro Pocket program in Nigeria to scale up food production and boost livelihood resilience.
The program aligns with the Bank’s African Emergency Food Production Facility and will support Nigeria’s efforts to mitigate the impacts of the war in Ukraine.
NEPC, SMEDAN seal deal to boost visibility of Nigerian goods in West Africa (Businessday)
“Considering the current economic reality of the country occasioned by dwindling price of oil in the global market, there is no auspicious time than now to aggressively promote the non-oil sector more as a way of salvaging our nation’s ailing economy,” Yakusak said.
The Nigerian Export Promotion Council (NEPC) and the Small and Medium Enterprises Development Agency (SMEDAN) have signed a Memorandum of Understanding (MOU) to facilitate the first West African MSME (WAMSME) Export Opportunities Exhibition. Ezra Yakusak, executive director/CEO of NEPC, said described the MoU as a strategic collaboration aimed at enhancing the visibility of Made-in-Nigeria goods and services within West Africa and the rest of the market.
Somalia president intensifies diplomatic trips in the Horn of Africa (Garowe Online)
President Hassan Sheikh Mohamud has already visited Kenya and Eritrea as he solidifies ties within East Africa and the Horn of Africa.
Somali President Hassan Sheikh Mohamud intensified his diplomatic trips in the Horn of Africa just a few months after he took the oath of office, following severed ties in the region by his successor Mohamed Abdullahi Mohamed better known as Farmajo.
On Sunday, Hassan Sheikh Mohamud visited Djibouti, one of the troops contributing nations in the right against Al-Shabaab. Currently, Djibouti has more than 2000 soldiers who are helping Somalia to counter violent extremism according to UN statistics.
African trade and integration
Preparations in high gear for the High-level EAC Heads of State Retreat on the EAC Common Market and 22nd Ordinary Summit of the EAC Heads of State (East African Community)
Preparations are in high gear for the EAC Heads of State Retreat on the EAC Common Market and the 22nd Ordinary Summit of the EAC Heads of State scheduled for 21st and 22nd July, 2022 respectively at the Arusha International Conference Centre, in Arusha, Tanzania.
About 300 participants from Partner States, private sector, civil society and development partners are expected to attend both the High Level Retreat and the 22nd Summit.
During their High Level Retreat on the Common Market, the Heads of State are expected to, among other things: take stock of the progress of implementation of the EAC Common Market Protocol; adopt strategic measures to unlock the lags and bottlenecks in establishment of the Common Market; agree on a roadmap for the full realization of the Common Market, and; identify key areas where Development Partners can contribute to the attainment of the Common Market.
The United Nations Economic Commission for Africa (ECA) and the World Bank co-organized on July 19, 2022, a virtual workshop on the development of the Green, Social and Sustainable (GSS) sovereign bond market in Africa.
Innovative financing solutions are needed for countries across Africa to achieve their ambitious climate investment goals and meet the Paris Agreement commitments. In the context of prudent debt management, GSS bonds can constitute a central part of the financing strategy for sovereigns and subnational entities to fund both mitigation and adaptation investments.
Hanan Morsy, ECA's Deputy Executive Secretary, said, "ahead of this year's COP27 held in Egypt, Africa faces a mixed landscape for achieving climate ambitions and NDCs. We urgently need the 100 billion USD per annum promise to be realized, while we need a new financing target which will mobilize the trillions needed. GSS bonds play a critical role in tapping into resources at the international capital markets to unleash the potential of the green and blue economy in Africa. ECA is supporting member states under various initiatives, such as the Great Blue Wall, the Liquidity and Sustainability Facility, and debt-for-nature swaps, to graduate from the aid dependencies by leveraging market-based innovative finance instruments.
Scaling-up the private sector participation in North Africa (UNECA)
The ECA Office for North Africa will hold on 20-22 July in Tangier (Morocco) a hybrid workshop under the theme: “Scaling-up the private sector participation in North Africa”.
This event will be an opportunity for officials from North African Ministries of finance, Planning & Economic development, private sector, academia and development institution representatives to share their understanding of challenges experienced by the private sector across North Africa, discuss good practices and innovative solutions and draw the outlines of a roadmap to accelerate private sector contributions to national economies.
West Africa's Top Options for Scalable Power Generation (Energy Capital & Power)
West Africa is the largest growing human population in the world and yet every one of its nations is targeting universal electrification in the medium-term. Production must meet and surpass demand for economic growth from energy exports, but for an equitable transition to be achieved, this means matching investments into gas alongside solar and wind power.
Opportunities within the power generation space, in particular, will be largely driven by the exploitation of low-carbon energy sources, and as such, the upcoming MSGBC Oil, Gas & Power conference – opened by H.E. Macky Sall, Senegalese President and current African Union Chairperson – will offer critical insight into these opportunities.
Through a roundtable forum under the theme, “Financing Electrification within the Energy Transition,” the conference will explore the strategic role played by each of these low-carbon energy sources in improving power generation capacity, formulating a robust west African energy transition narrative ahead of COP 27 this year in Egypt.
African Economic Conference invites researchers to submit papers for 2022 edition (UNECA)
The organizers of the African Economic Conference have issued a call for research and policy papers that focus on the event’s theme: Supporting Climate-Smart Development in Africa.
This year’s conference will be held from December 9–11 in Port Louis, Mauritius. As has been the practice over the years, it will be hosted by the African Development Bank, the Economic Commission for Africa, and the United Nations Development Program.
The call for papers is underpinned by the need to address Africa's vulnerability to climate change through innovative solutions and accelerate investments through green growth strategies.
AfCFTA: Afreximbank backs GAIN to train youths on entrepreneurship (Daily Sun)
The African Export-Import Bank (Afreximbank) has announced a grant for Grand Africa Initiative (GAIN) a pan-African non-governmental organisation enabling African youths through training, empowerment, mentorship, and advocacy, to train 200 young Africans on entrepreneurship and intra-African trade for a three-month period starting July 2022.
Executive Director of GAIN, Chinwe Okoli, in a statement, on Monday, confirmed that faculty of experts from around the world have been arranged to provide technical advisory and financial lessons to the successful applicants that would participate in the training.
“The programme will also broaden inclusiveness in the implementation of the AfCFTA through interventions that support young Africans, women, and small and medium-sized enterprises.
Supporting post-COVID-19 recovery among African cross-border traders (UNCTAD)
UNCTAD conducted nine six-day training sessions as part of a UN multi-agency project entitled “Global initiative towards post-COVID-19 resurgence of the micro, small and medium-sized enterprise (MSME) sector”.
The project was aimed at rebuilding livelihoods and mitigating the impacts of the pandemic.
The training programme entailed dissemination of traders' guides, content on COVID-19 control measures and sessions on strategies for making businesses more resilient.
Tripartite Framework win Accolades at the AU Mid-Year Summit (COMESA)
The Tripartite Free Trade Area Agreement that brings together COMESA, East African Community (EAC) and the Southern African Development Community (SADC) Tripartite Free Trade Area has been hailed as a good model for regional integration. This followed a presentation on the success of the Tripartite FTA at the just concluded African Union Mid Year- Summit held in Zambia, Sunday, July 17 2022.
Among the key highlights was TFTA’s tariff liberalization coverage which is now at 100% and takes into account general, specific and security exemptions provided for under the existing regional economic communities (REC)/ Regional and Multilateral agreements. Further, over 90% of the TFTA list of Rules of Origin have been agreed upon and what remains are the textiles and automobiles, and there is an established mechanism for managing the transition.
Africa: AfCFTA Secretariat Gets U.S.$11 Million Grant to Enhance Effective Implementation (Top Africa News)
The Board of Directors of the African Development Fund has approved an $11.02 million support package to the Permanent Secretariat of the African Continental Free Trade Area (AfCFTA).
"The funding is mainly aimed at strengthening AfCFTA institutions through technical assistance and capacity building. However, more support is required to fund private sector projects and member states' programs," Sebahizi said.
Studies and initiatives will be undertaken to identify new business and economic opportunities for women, to help develop the AfCFTA Women and Youth in Trade Protocol, and to support capacity building and targeted business skills for women.
Rights of migrants to dominate EUI-UCFR Conference in Kampala (pmldaily.com)
Experts from the African Union, Intergovernmental Authority on Development, East African Community and EUI alumni will on Wednesday July 20 meet at high-level event in Kampala discuss the main findings of the forthcoming report on Migration Governance and Migration Diplomacy in Uganda.
According to organizers, on 21-22 July, 25 African experts will participate in an EUI executive training about migration governance in Kampala.
AfCFTA And Equity Join Hands To Deepen Economic Integration (Soko Directory Team)
At the margins of the 41st Ordinary Session of the Executive Council of the African Union taking place in Lusaka, Zambia, the African Continental Free Trade Area (AfCFTA) Secretariat and Equity Group have signed a Memorandum of Understanding to deepen the economic integration of the African continent.
The two institutions will work on the private sector economic recovery and resilience stimulus plan, which Equity has seeded with a USD 6 Billion fund focusing on the primary sectors of food and agriculture, extractives, manufacturing and logistics, trade and investments, social impact, health, and environmental investments, as well as a technology-enabled economy to accelerate economic recovery and resilience of the African continent.
The partnership will among others, support the creation of 50 million jobs by 2025 and 5 million SMEs will receive loans to scale and grow, utilizing tools of the AfCFTA Agreement and create additional private sector lending with an envisaged loan book to be directed to agriculture (30%), manufacturing (15%), MSMEs (65%).
Africa: AU Launches Early Warning Platform to Tackle Insecurity (Top Africa News)
The Inter-Regional Knowledge Exchange on Early Warning and Conflict Prevention (I-RECKE) will play a crucial role in preventing conflicts on the continent and will also be tasked to detect and communicate threats to peace, AU Deputy Chairperson Monique Nsanzabaganwa said during the launch of the platform on the sidelines of the 41st Ordinary Session of the Executive Council.
The I-RECKE platform is expected to build resilience and stability on the continent and enhance information sharing among member countries, Nsanzabaganwa said, adding that member countries should invest in their own early warning systems due to the complexity of threats to peace.
AFR100 progress report launched (IPPmedia)
A digital monitoring tool developed by GIS experts to gauge progress has been unveiled. The online platform will be used to see what efforts are being registered in the ecosystem restoration on the entire African continent. AFR100 initiative aims to restore 100 million hectares of degraded forest and landscapes by 2030.
Speaking during the launch Mamadou Diakhite, Acting Head of Environmental Sustainability at the African Union Development Agency (AUDA-NEPAD said as African countries look for best pathways to build more durable, inclusive and resilient economies, the sixth AFR100 Annual Partnership Meeting provides a unique and timely opportunity to stress that our lives are built on healthy landscapes.
Africa: Gambia to Chair AU Peace & Security Council in August (Top Africa News)
The Republic of The Gambia will chair the African Union Peace Security Council (PSC) in August, according to report.
Under Articles 6 and 7 of the Protocol Relating to the Establishment of the PSC, this Policy Organ assumes the continental mandate to spearhead the implementation of the African Peace and Security Architecture (APSA) and the African Governance Architecture (AGA).
The Gambia will convene eight (8) Sessions principally focused on strengthening the nexus between democratic governance and sustainable peace, security and development. The PSC Sessions will be chaired by H.E. Ambassador Jainaba Jagne, Permanent Representative of the Republic of The Gambia to the African Union.
Terrorists kill 14500 people, displace 5.5m in ECOWAS (The Niche)
Terrorists have killed 14,500 people and displaced 5.5 million others in the Economic Community of West African States (ECOWAS) in the past four and a half years, says former ECOWAS Commission President Jean-Claude Brou.
“First of all, the deterioration of the security situation has caused havoc, not only in the Sahel area, affecting Mali, Burkina Faso, Niger and the North East of Nigeria, but it soon expanded to the coastal zone, hitting Côte d’Ivoire, Benin and Togo.
“Terrorist attacks and herds of bandits plunged these countries into mourning, with close to 14,500 dead in four and a half years, threatening the peace of rural population, and forcing people to seek shelter away from their home areas,” he said.
ECOWAS battling food crisis (BusinessGhana)
The Deputy Majority Leader in Ghana’s Parliament and a Member of the ECOWAS Parliament, Alexander Afenyo-Markin, has disclosed that member countries of the regional economic body are currently confronted with an unprecedented food crisis.
According to him, this has rendered about 17 million people in need of immediate assistance and an additional 51 million persons, including women and children, under pressure.
Mr. Afenyo-Markin said though ECOWAS has adopted pragmatic steps to tackle the challenge to the best of its ability, the 51 million inhabitants under food crisis pressure in the region could lapse into a crisis phase.
Global economy
UN and partners meet to address 'critical' state of global food crisis (UN News)
Scaling up climate resilience across food systems is among the actions needed to counter rising hunger and malnutrition, UN General Assembly President Abdulla Shahid said on Monday, at a special meeting to address the global food crisis.
Mr. Shahid said as countries implement more sustainable and environmentally responsible food-practices, they must also approach food security as part of a broader multilateral agenda that both recognizes the interconnectedness of today’s challenges, and the futility of trying to solve them unilaterally or in isolation.
Mr. Shahid also highlighted the need to prioritize food security in the world’s least developed countries, landlocked developing nations, and small island developing states, whose citizens “are typically forced to spend a larger share of their income on basic necessities, including food, and are thus disproportionately affected by rising food prices.”
UN publishes new guidance on curbing child abduction and other ‘grave violations’ in war (UN News)
The UN’s top official advocating for children caught up in armed conflict issued new guidance on Monday designed to help expert staff on the ground protect children who are abducted, or who suffer other grave violations.
There are six grave violations identified by the UN which serve as the basis for gathering data and reporting, namely the killing and maiming of children; recruitment or use of child soldiers; sexual violence against children; abduction; attacks against schools or hospitals, and finally, denial of humanitarian access.
The guidance can “help inform the understanding of the grave violation”, as well as provide advocacy tools that can be used as part of efforts to end and prevent the abduction of children by parties to conflict.
India and Africa to explore opportunities in defence, maritime security and more at two day conclave (The Financial Express)
India is hosting a Conclave on India-Africa Growth Partnership in New Delhi under the aegis of Ministry of External Affairs and Ministry of Commerce and Industry.
During the two days meeting which comes amidst the ongoing Russia-Ukraine war, both sides will explore ways of further strengthening bilateral ties as well as discuss emerging economic opportunities as African Continental Free Trade Area (AfCFTA) gains ground.
Besides bilateral and regional discussions, the focus of the two day event from July 19-20 will be on is going to be on specific areas including Defence, Maritime Security, Healthcare & Pharmaceuticals, Power and Energy, IT / ITES, Infrastructure and Financial Partnerships, Agriculture & Food processing, Power and Energy, Skill Development and Consultancy, and more. Also, during the conclave the possibility of Trilateral Partnerships will be explored too.
Israeli-US relations 'at one of their all-time highs' following Biden visit (Jewish Insider)
As Israel’s government gathered for its weekly cabinet meeting on Sunday, two days after the conclusion of President Joe Biden’s inaugural trip as president to the country, Prime Minister Yair Lapid proudly hung a framed copy of the newly signed “Jerusalem U.S.-Israel Strategic Partnership Joint Declaration” on the wall in the cabinet room.
The declaration, a roadmap for the U.S.-Israel strategic alliance covering issues ranging from the threats posed by Iran to the Palestinian question to shoring up and expanding regional peace, is being touted as the pinnacle of the two-day trip, which also included a meeting with Palestinian leaders in the West Bank.
Reaffirming the “unbreakable bonds” between the two countries and the enduring commitment of the U.S. to Israel’s security, the declaration outlines, among other things, the two countries’ commitments to democracy and “tikkun olam,” repairing the world, as well as a U.S. pledge never to allow Iran to acquire a nuclear weapon and to continue maintaining Israel’s qualitative military edge in the region.
Wanted: $20M to stop environmental catastrophe in the Red Sea (Devex News)
The United Nations says it needs $80 million to prevent an oil spill in the Red Sea potentially four times greater than the Exxon Valdez disaster. It is $20 million short.
Moored 4.8 nautical miles off the coast of Yemen, the FSO Safer is a supertanker built in 1976 that was later converted into a floating storage and offloading facility, or FSO. It’s been abandoned due to the war since 2015, carrying an estimated 1.14 million barrels of light crude oil.
The estimated cleanup cost when it either leaks or explodes is $20 billion. Either of those occurrences is just a matter of time, the U.N. resident and humanitarian coordinator for Yemen, David Gressly, told Devex in an interview in Brussels last month. Fishing communities would lose their income, towns would be exposed to toxins, and the nearby ports of Hodeidah and Saleef — both key to supplying aid to a country with 17 million people in need of food assistance — could be closed.
UN commemorates Nelson Mandela’s ‘fight for a better world’ (UN News)
UN Member States gathered in the General Assembly Hall on Monday to observe Nelson Mandela International Day, a celebration for everyone to take action and inspire change in their communities.
Abdulla Shahid, President of the UN General Assembly, recalled that he also advocated for democracy, gender equality, the rights of children and young people, and for protecting the environment.
“Madiba’s fight against apartheid, was in fact a fight for a better world, in which the freedom, justice and dignity of all were respected. He called for peace, social justice, equality and human understanding throughout his life,” he said.
Agricultural trade under strain - Responding to new food security challenges (EBRD)
27 Jul 2022: In the context World Trade Organization’s Aid For Trade Global Review, the EBRD and FAO are co-organising a one-hour online session to discuss the implications of the war on Ukraine for agricultural markets, trade and food security. The event will feature representatives from the private sector, of international financial institutions and the international community, as well as leading experts in the field of agriculture and the global food systems.
Ukraine denounces deadly missile strike as war overshadows G20 meeting (EU Reporter)
The attack ruined Friday's G20 finance ministers meeting in Indonesia, at which the top U.S.- and Canadian officials accused Russian officials of complicity in atrocities.
Ukraine claimed Thursday's (14 July) strike against Vinnytsia (a city of 370,000 inhabitants) was carried out using Kalibr cruise missiles fired from a Russian submarine in Black Sea.
Janet Yellen, U.S. Treasury Secretary, condemned Russia's "brutal" and unjust war and stated that Russian finance officials also shared the responsibility.
She stated that Russia was solely responsible for the negative spillovers to global economies, especially higher commodity prices, by starting this war.
Push for post-Brexit trade deals may threaten UK pledges on deforestation (The Guardian)
A war of words is raging within the government over deforestation and trade, with green campaigners warning that a proposed policy could have dire consequences for efforts to stop illegal logging.
Anne-Marie Trevelyan, the international trade secretary, is believed to want to relax tariffs for goods including palm oil from Malaysia, a country of top concern over deforestation. The relaxation would be part of a broader push for trade deals with developing countries that the government is pursuing in the wake of Brexit.
The UK’s Environment Act, which was passed last year, makes provision for due diligence when companies import goods, including palm oil, from overseas countries where deforestation is rife.
Examining the intersection of data privacy and civil rights (Brookings Institution)
For historically marginalized groups, the right to privacy is a matter of survival. Privacy violations have put these groups at risk of ostracization, discrimination, or even active physical danger. These tensions have long pre-dated the digital age.
Under modern-day surveillance capitalism, interested parties can collect and monetize online data at an unprecedented scale with little scrutiny or limitation. That is why the recent overturning of Roe v. Wade highlights the urgent and pressing need for comprehensive federal privacy legislation, particularly to reduce the potential for further exploitation and manipulation of individuals who seek fair reproductive rights. Further, Congress needs to find consensus around federal privacy legislation to address other surveillance and data collection concerns, in particular commercial surveillance practices that enable discriminatory advertising, racially biased policing, and the outing or surveillance of historically marginalized groups.
EU foreign ministers weigh up ban on Russian gold imports (The Guardian)
EU foreign ministers are discussing a ban on Russian gold imports, the most significant measure in a limited plan by the bloc to further curb funding for the Kremlin’s war machine.
The EU’s high representative for foreign policy, Josep Borrell, said the ban on Russian gold was “the most important” measure of the latest plan, which is focused largely on “improving the implementation of the already existing sanctions”.
The EU has passed six rounds of sanctions against Russia, but agreeing the last package – an incomplete ban on oil agreed in May – was a bruising experience that revealed stark differences on how far the bloc should go.
Heatwave, Energy Crisis Fuel Europe's Summer of Discontent: Balance of Power (Bloomberg)
Record heat spells are less one-off events than a foretaste of what is to come as long as the world continues to burn more fossil fuels, adding greenhouse gases to the atmosphere.
Yet that is precisely what is happening as a result of President Vladimir Putin’s war on Ukraine. The US is pressing for more oil production to curb gasoline prices inflated by the invasion, while Europe builds liquefied natural gas infrastructure and fires up coal-powered plants in the rush to replace Russian energy supplies.
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SA government hits back at new EU regulations on citrus exports (IOL)
The South African government has described new requirements for the export of citrus, mainly oranges, from South Africa to the European Union as “trade restrictive” and “unjustified”. In a statement on Monday, the Department of Agriculture, Land Reform and Rural Development said the South African government continued to engage with the European Commission (EC) on the new requirements.
SA customs strike, cargo keeps piling up at Beitbridge (Chronicle)
TRANSPORTERS of commercial cargo continue to experience long delays at the Beitbridge Border Post, as the South African Revenue Services (SARS) customs officials continue with their protest over pay increase. The revenue and customs officers are demanding a pay rise of 12 percent and their employer has offered to review the salaries by only 1,7 percent, a move that has resulted in a stalemate.
“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. “SARS will ensure that the following capabilities remain available throughout the duration of the industrial action: the processing of declarations will continue as normal; physical inspections of goods will continue as normal, with inspection finalisation being centralised and managed on a 24-hour basis. “In addition to that, trade has been engaged about temporary measures instituted in relation to the authorisation and management of SADC certificates of origin for cargo transported across land borders.”
Concern over move to coal (SAnews)
Minister of Forestry, Fisheries and the Environment Barbara Creecy has expressed concern at some developed countries who were reverting to coal in response to their negative national circumstances. This as the Glasgow Climate Pact called upon nations to phase down unabated coal power and inefficient subsidies for fossil fuels. “We cannot have backtracking by developed country Parties. Developed countries must continue taking the lead with ambitious action. The ultimate measure of climate leadership is not what countries do in times of comfort and convenience, but what they do in times of challenge and controversy,” the Minister said on Monday.
Horticulture cash crop farming on the rise in Zim (The Herald)
Zimbabwe’s horticultural sector is fast emerging as a major driving force for the development of agricultural sectors in the country. Several indicators are already casting a shining light on this sector. Horticulture exports in 2021 grew by 6,8 percent to US$64,6 million from US$59,5 million recorded in 2020, according to the trade promotion body, ZimTrade. With the right support and investments they are rising to the occasion, stimulating export growth through increased production and exploiting opportunities coming with growing global demand.
State relaxes deadline for yellow maize imports (Business Daily)
Animal feed manufacturers have got a reprieve after the Ministry of Agriculture announced it will allow shipments of processors whose consignment of yellow maize imports will arrive in the country past the initial set deadline of October. The imports are aimed at taming the high cost of animal feed. Livestock Principal Secretary Harry Kimtai said those who would have made orders for yellow maize within the set timeline will not be barred from offloading the produce duty-free even if it docks at the port way past the deadline. The manufacturers had last week said that they would not import the produce because of the shorter opening that is remaining between now and the end of October when the duty-free window lapses.
Sanctions block Sh13bn Russia exports to Kenya (Business Daily)
The Russia-Ukraine conflict knocked off Sh13.3 billion in imports from Moscow in the three months to March, forcing Kenya to turn to expensive sources of wheat, fertiliser and steel that helped drive inflation to a 58-month high. Latest data from the Kenya National Bureau of Statistics (KNBS) shows that the sharpest decline happened in the three months to March, as troops from Moscow marched into Ukraine, with imports from Russia dropping 66 percent from Sh19.9 billion to Sh6.6 billion. European nations and the US have imposed sanctions against Russia in the wake of its invasion of Ukraine in February, restricting the flow of its exports. They have sanctioned more than 1,000 Russian individuals and businesses and restricted the purchase of Russian oil.
Kenyan exports to Russia dropped marginally by three percent to Sh2.8 billion during the conflict period, as traders sought alternative routes to ship goods into the country at a time when the international community was announcing sanctions. “The issues on logistics are due to shipping challenges, wheat not leaving the country (Ukraine) and security around the war zone region imposing high risk even for delivery of our exports,” said Julius Opio, the Kenya National Chamber of Commerce and Industry (KNCCI), Nairobi County chairman.
Uganda’s executives globetrot to drum up investor appetite for $4b oil refinery (The East African)
Uganda government officials have been racking up air miles between Entebbe, Italy and US to strike a financing deal for the $4 billion refinery project. Government officials admit that the refinery project has fallen behind others, and will likely come onstream late in 2027 at the earliest if the necessary financing is tied up and the pending technical studies concluded sooner. As a result, local players that were primed to take up equity in the project as well as regional countries that expressed interest in the refinery that was sold as an East African Community (EAC) venture, remain non-committal, citing the project’s failure to take shape since 2018, when it was awarded to a consortium of investors.
Kenya-US go for fresh trade pact as Biden dumps Trump’s deal (The Star, Kenya)
Kenya and US will commence working within three months to develop a detailed roadmap for engagement as they seek what they term a “ Strategic Trade and Investment Partnership.” This signals an end to an initial push for a Free Trade Area (FTA) agreement, whose talks commenced two years ago.
On Thursday, CS Maina and Tai announced the launch of the Kenya-United States Strategic Trade and Investment Partnership (STIP).This was after a virtual meeting between the two, building on their June 13 meeting in Geneva. The two agreed that their governments will pursue enhanced engagement leading to high standard commitments in a wide range of areas with a view to increasing investment, promoting sustainable and inclusive economic growth, benefiting workers, consumers, and businesses.
In a statement to newsrooms, Kenya’s trade ministry said the two have identified issues where the country and the US will develop “an ambitious roadmap” for enhanced cooperation, with the goal of negotiating high-standard commitments in order to achieve economically meaningful outcomes.
ECA pushes Zambia’s Economic agenda on the margins of the African Union Summit (UNECA)
The United Nations-Under-Secretary-General (USG) and Economic Commission for Africa Executive Secretary(ES) ended a successful four-day visit to Zambia and met with the President of the Republic of Zambia, Minister of Finance and National Planning, Governor of the Bank of Zambia and delivered a public lecture to students and academics at the margins of the African Union 41st Ordinary Session of Executive Council and 4th Mid-Year Coordination Meeting that took place from 14th to 17th July 2022 in Lusaka.
The meeting organized under the theme, “Building Resilience in Nutrition and Food Security across the African Continent,” brought together thirteen Heads of State and Government, comprising five Heads of State that form the current Bureau of the Assembly of the African Union (AU), and eight Heads of State who Chair the Regional Economic Communities that are recognized by the AU. The Summit closed with concrete decisions presented by the AU Chairperson, the Senegalese President Macky Sall, who said Africa needs pharmaceutical sovereignty, access to commercial platforms for trade and regional integration to accelerate social and economic development. The USG assured member States of the Economic Commission for Africa (ECA)’s continued support and advocacy for debt sustainability in Africa and for a fair and equitable global financial architecture.
Egypt-Tanzania trade exchange grows 36.3% YoY in 2021
Trade exchange between Egypt and Tanzania amounted to $51.4 million in 2021, rising by 36.3% from $37.7 million in 2020, according to a recent official statement, citing Head of the Egyptian Commercial Service (ECS) Yahya El-Wathik Bellah. Egyptian exports to Tanzania notably grew last year to $47.9 million, compared to around $34.7 million in 2020, El-Wathik Bellah highlighted. Meanwhile, Egypt’
Kenya exempts Egyptian exports from customs duties for additional year (ZAWYA)
Kenya has decided to continue exempting Egyptian exports from customs duties for a year, starting from July 1st 2022 until the end of June 2023, according to a recent statement by the Egyptian Ministry of Trade and Industry. This decision comes after Kenya obtained the approval of the East African Community’s (EAC) Customs Union to extend the exemption of customs duties on imports from Egypt and the Common Market for Eastern and Southern Africa (COMESA) for an additional year. Egypt has been ranked first among the top 28 exporters to Kenya in 2021, acquiring more than 70% of the Kenyan market as compared to its peers.
In 2021, trade exchange between Egypt and Kenya increased by 4.7% to $666 million, versus $635.8 million in 2020, Head of the Egyptian Commercial Service (ECS) Yahya El-Wathik Bellah said.
Egypt-Germany trade exchange increases to $4.8bln in 2021: CAPMAS
Volume of trade exchange between Egypt, GCC countries in 2021 estimated at $16.1bln
Africa
Developed Countries Urged to Free Africa from Shackles of Debt (This Day)
The only way for Africa to be freed from the shackles of debt and get its development back on track is if the continent is assisted by developed countries, private financial institutions and international multilateral financial institutions. This was this submission from an international online seminar with the theme, “Africa’s Debt Situation and China’s Responses,” organised by the Shanghai Institute of International Studies (SIIS). The seminar held at the weekend had in attendance experts and professionals from international organisations, enterprises, Chinese and foreign think tanks and representatives from universities, where they discussed two major topics: ‘Assessing the debt situation in Africa, and China’s role in the African debt issue.’
The seminar aimed to deepen the understanding of African debt crisis and explore how China and the African community could deepen their cooperation with Africa. At the same time, the seminar called on all parties to coordinate and cooperate on this problem, especially the developed countries, private financial institutions and international multilateral financial institutions, and together they should take stronger actions in providing financial support to developing countries and alleviating their debt through actions by all parties can the world help Africa and the global economy to achieve inclusive and sustainable development.
Showcasing the AFCFTA-Anchored Pharmaceutical Initiative: Lessons and Experiences (UNECA)
The United Nations Economic Commission for Africa (ECA)’s AfCFTA-anchored Pharmaceutical Initiative held a virtual side event on the margins of the High-Level Political Forum on Sustainable Development: Showcasing the AfCFTA-anchored Pharmaceutical Initiative: lessons and experiences on July 6 2022.
Hon. Sidibe in his opening remarks said that the Continent’s “dependence on externally manufactured goods was problematic as access to COVID 19 vaccines starkly reminded Africans. He said that the local manufacture of pharmaceuticals on the continent, was therefore no longer an option. “The continent only produces 3% of the medicines consumed by its people. Pharmaceutical supply chains have multiple intermediaries.” He said that these intermediaries contributed to drugs being sold in Africa being the most expensive in the world and that it is very important, in addition to note that Africa has the highest prevalence of sub-standard and counterfeit medicines, with some countries are reaching as much as 30%. Hon. Sidibe said, “these challenges have been largely attributed to weak or absent drug regulatory systems, unclear policies and incomplete or inconsistent legal and regulatory frameworks in many cases. So, acting at this level is therefore critically important.”
The Board of Directors of the African Development Fund approved an $11.02 million support package to the Permanent Secretariat of the African Continental Free Trade Area (AfCFTA) to help it enhance effective implementation.
The world’s second-largest free trade area has a potential market of 1.2 billion consumers, but Africa has the world’s lowest level of intraregional trade at less than 18%, compared with 22%, 50% and 70% for Latin America, Asia, and Europe respectively. The AfCTFA aims to increase this by up to $35 billion per year (25%) over a decade, lower annual imports by $10 billion, and boost agriculture and industrial exports by up to $45 billion (7%) and $21 billion (5%) respectively.
This second phase of support continues to aim to encourage sustainable intra-African trade and to increase the share of African countries participating in it. It is also intended to move the African trade integration agenda forward by enabling the secretariat and the countries of the zone – especially transition countries – to harmonize and integrate national and regional trade policy initiatives.
African Development Bank Group approves $73.5 million to boost food production in Tanzania
Lack of product diversity leaves East Africa exposed (The East African)
East African countries are among the 45 nations in the continent that still depend heavily on the export of primary commodities such as minerals, ores, fuels, metals, agricultural produce and foods, a phenomenon which increases their vulnerability to economic shocks and slows growth. This is why the UN Conference on Trade and Development (UNCTAD) is urging them and other African countries to implement various policy recommendations that will see them diversify their exports by boosting the services sector. The UN agency’s new report, released July 14, suggests that the commodity-dependent African countries could become more resilient to external economic shocks if they diversified their exports, especially through expanding their service exports. “Dependence on commodity exports has left African economies vulnerable to global shocks and hindered inclusive development for far too long,” said Rebeca Grynspan, UNCTAD Secretary-General.
EAC transport & logistic cost high at 1.8 usd per km per container (EABC)
Dr. Merian Sebunya, Chairperson, National Logistics Platform, Uganda said “Transport and logistic costs compose of 35%-42% of production this is high compared to 8% in Asian countries. “ She explained that this has negatively impacted the competitiveness of the EAC bloc and trade balance. EAC transport costs are high estimated at 1.8USD per km per container against international best practices of 1 USD per km per container.
The EAC Trade & Investment Report (2020) shows EAC exports globally stood at USD US16.2 billion in 2020 while imports at USD 35.6 billion registering a negative balance of trade of USD 19.4 billion.
Cross border traders urge regional governments to create one stop centres (Chronicle)
CROSS border traders have urged regional governments to decentralise trade document issuance and clearance by creating one-stop-centre models for harmonised services and enhancing ease of doing business. This emerged during a stakeholder training meeting organised jointly by the Common Market for Eastern and Southern Africa (Comesa) and the International Organisation for Migration (IOM) in Bulawayo last week. In an interview on the sidelines of the meeting, Comesa consultant and advisor on migration, Mr Brian Chigawa, said the workshop highlighted the challenges facing cross border traders and sought to help address them.
He said cross border traders were also encouraged to use safe and proper channels of doing business, which is possible when they get required documents and licences.
Northern Corridor ministers eye wider use of rail and waterways (The East African)
The Northern Corridor Council of Ministers has approved $5.53 million budget for the 2022/ 2023 financial year, with an eye on roads, rail and waterways projects as solutions to congestion. The Executive Committee approved $1.1 million more than it did in the past fiscal year for railway and inland water projects expenditure. The meeting made the decision even as Kenya and Uganda remain at odds over the completion of the oil jetty in Lake Victoria on the Ugandan side. Kenya, Tanzania and Uganda had earlier agreed on using Lake Victoria as a key transit point for oil.
“There is a need for an increased inter-connectedness of the different transport modes along the corridor, especially with the increased pace of development of railway and road infrastructure and the upgrading of lake ports,” reads a joint communique by the six member states.
Africa’s risk of debt piles as countries fight inflation (The East African)
African governments owe three times as much debt to private creditors in the West as they do to China, a report by UK-based Debt Justice released this week shows. Using World Bank and International Monetary Fund (IMF) data, Debt Justice estimates that 35 percent of the continent’s external debt is owed to banks, asset managers and oil traders in the West, with Chinese lenders accounting for around 12 percent. Of the $444 billion in debt repayments that African governments will cough up between 2022 and 2028, $156 billion or 35 percent will go to these private creditors compared with $83 billion due to China.
Since the launch in November 2020 of the G20’s Common Framework, three countries – Ethiopia, Zambia and Chad –have applied for support under the programme aimed at providing debt restructuring as an answer to unsustainable debt levels. So far, none has received any debt relief.
The IMF has called for the initiative to be stepped up, warning that countries could face “economic collapse” if global action on debt relief falls short.
Now, Ethiopian authorities have approached their creditors to speed up relief decisions to help the country balance its budgetary needs in the wake of various crises. The move made this week reflects the situation in several African countries that may see their efforts at rebuilding post-Covid-19 drowned in mounting debt or weakening currencies.
Global economy
The COVID-19 pandemic, interruption in international supply chains, and the war in Ukraine have severely disrupted food, fuel, and fertilizer markets, which are interlinked. By June 2022 the number of acute food insecure people – whose access to food in the short term has been restricted to the point that their lives and livelihoods are at risk – increased to 345 million in 82 countries according to WFP. Making matters worse, around 25 countries have reacted to higher food prices by adopting export restrictions affecting over 8 percent of global food trade.
Avoiding further setbacks to achieving the Sustainable Development Goals requires short and long-term actions in four key areas: (i) providing immediate support to the vulnerable, (ii) facilitating trade and international supply of food, (iii) boosting production and (iv) investing in climate-resilient agriculture.
DG Okonjo-Iweala underlines vital role of trade in addressing food crisis, inflation (WTO)
In her virtual intervention at a session on strengthening global collaboration for tackling food insecurity, the Director-General told the gathered ministers and central bank governors that WTO members “took some important steps” at their 12th Ministerial Conference (MC12) in June. These included a decision to exempt from export restrictions food bought by the World Food Programme (WFP) for humanitarian purposes and a declaration to facilitate trade in food, fertilizer and other agricultural inputs.
“Ministers also adopted a Declaration pledging to facilitate trade in food, fertilizer and other agricultural inputs,” the DG added. “They stressed the importance of not imposing export restrictions and encouraged members with surplus stocks to release them on international markets.”
G20 finance chiefs make few policy breakthroughs at Indonesia meeting (Reuters)
The Group of 20 major economies’ finance chiefs on Saturday pledged to address global food insecurity and rising debt, but made few policy breakthroughs amid divisions over Russia’s war in Ukraine at a two-day meeting in Indonesia. With questions growing about the effectiveness of the G20 in tackling the world’s major problems, U.S. Treasury Secretary Janet Yellen said the differences had prevented the finance ministers and central bankers from issuing a formal communique but that the group had “strong consensus” on the need to address a worsening food security crisis.
The G20 will set up a joint forum between finance and agriculture ministers to address food and fertilize supply issue. A similar forum has been set up for finance and health ministers for pandemic preparedness. G20 members pulled together at the start of the pandemic, but initiatives to cushion the shock for heavily indebted poor countries failed to produce significant results.
Kristalina Georgieva, head of the International Monetary Fund, warned more than 30% of emerging and developing countries - and a staggering 60% of low-income countries - were in or near debt distress. read more “The debt situation is deteriorating fast and a well-functioning mechanism for debt resolution should be in place,” she said.
G20 Finance Ministers and Central Bank Governors Converge to More Concrete Actions amid Increasing Global Challenges (G20 Presidency of Indonesia)
Russians to hold trade talks in South Africa (The Mail & Guardian)
While their compatriots back home are engaged in mortal combat with Russians, Ukrainians in South Africa will have to settle for keeping a beady eye on their enemies when a Russian delegation arrives in Johannesburg next week on a two-day business mission. The Russian Export Centre (REC) group, which describes itself as a state-owned development institute for non-energy sector exports, is hosting the meeting on Wednesday and Thursday at the Sandton Holiday Inn. According to the invitation, REC expects to bring in representatives from 10 sizeable Russian companies as part of its bid to offer financial and non-financial support to the foreign partners of Russian exporters. The focus will be on “engineering and agricultural mechanisation”.
Working group on small business reflects on way forward post MC12 (WTO)
Members suggested that the Group should be looking into issues related to digitalization of trade processes, the treatment of low-value shipments and the impact of cyber-security on small business and enhancing engagement with the private sector to receive relevant feedback to the work of the Group.
E-commerce talks mark new phase in negotiations (WTO)
Ambassador Mina of Australia, who chaired the meeting, highlighted the statement issued at the 12th Ministerial Conference (MC12) by ministers of Australia, Japan and Singapore. This statement included a commitment to revise the working modalities of the initiative to ensure that it achieves progress in the next few months and to issue a new consolidated negotiating text by the end of 2022. Ambassador Mina said: “We are marking this new phase with a step-up of our convergence efforts that’s going to require a couple of different ways of working.” He said that participants will need to accelerate their work in the small group setting.
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Local news
Structural growth in South Africa to slow for the rest of this year (Engineering News)
While South Africa's real gross domestic product (GDP) growth expanded above consensus forecasts in the first quarter of this year, fading base effects, persistent structural constraints and the impact of Russia's invasion of Ukraine will result in growth slowing across the rest of the year, market and credit intelligence company Fitch Solutions Country Risk & Industry Research sub-Saharan Africa country risk analyst Lara Wolfe noted this week.
Elevated inflation and the poor labour market in the country will also cap real GDP gains, which are expected to slow to 1.7% for the year, well below the regional average of 3.2%.
As a result of growing inflation pressure and, given the hawkish stance of the US Federal Reserve Bank, Fitch Solutions expects the SARB to hike interest rates by a further 125 basis points to 6% before the end of the year.
Black Industrialists conference to highlight govt’s progress since 2016 (Engineering News)
Trade, Industry and Competition Minister Ebrahim Patel has confirmed that government will share the findings of research conducted into the impact of black industrialists on economic output and job numbers during the inaugural Black Industrialists and Exporters Conference.
The conference will be hosted on July 20 in Sandton and will serve to reflect on the performance of government’s Black Industrialists Programme since its inception in 2016.
The conference will comprise a keynote address by President Cyril Ramaphosa; a number of panel discussions; the launch of growth initiatives, such as the Black Exporters Network; a marketplace with 85 businesses showcasing products; and ten Presidential Awards that will be issued for excellence in business.
AfDB approves $66 million to help Guinea improve access to electricity (Devdiscourse)
On 14 July 2022 in Abidjan, the Board of Directors of the African Development Bank Group approved a $66.39 million support package for Guinea. The funding is intended to help it increase access to electricity.
It consists of a $4.17 million grant and a $9.37 million loan from the African Development Fund (the concessional arm of the African Development Bank Group) and a $24.13 million grant and a $28.72 million loan from the Transition Support Facility. The project is co-financed by the French Development Agency, the Islamic Development Bank, the Sustainable Energy Fund for Africa, hosted by the Bank, USAID, through the Africa Energy Program, and the Guinean government.
The Guinea Power Access Improvement Project will improve people's living conditions and the productivity of beneficiary companies through access to regular, reliable and cheaper energy services, explained Léandre Bassolé, the Bank Group's Country Manager for Guinea.
Rebuilding Cabo Delgado a daunting task (defenceWeb)
Mozambique’s restive northeastern province is abuzz with action. Despite recent losses, violent insurgents continue to attack villages and residents, while thousands of security forces fight to secure towns in order to welcome back displaced citizens and restore budding hopes of normalcy.
At the same time, the government, international organizations, donor countries and a regional bloc working to stabilize southern Africa are debating and forming plans to rebuild the province. The number of moving parts, like the rebuilding challenge itself, is overwhelming.
Ghana seeks IMF bailout as inflation spikes (Quartz Africa)
Ghana’s annual inflation climbed to 29.8% in June 2022, the first time the country’s inflation rate has touched 29% since January 2004. Ghana Statistical Service’s latest consumer price index report says June’s inflation was accelerated by higher costs of transportation, household equipment and maintenance, and utilities like electricity, gas, and water.
The new inflation rate underscores worsening economic conditions in the west African country especially this year. Between October and December last year, Ghana’s inflation rate averaged under 12%. In the second quarter of 2022, it was 27%, GSS’s data show.
Frustrated by rising costs of living, Ghanaians held days of protests in Accra at the end of June to draw the government’s attention, following up on previous outcries against new taxes on electronic transactions. Seemingly unable to save itself, Ghana’s federal government is, once again, looking to the International Monetary Fund for help.
AfDB to establish entrepreneurial bank in Tanzania (The Citizen)
Speaking in Dar es Salaam on Tuesday evening during the monthly engagement meeting of the CEO Roundtable of Tanzania (CEOrt), the AfDB country manager in Tanzania, Dr Patricia Laverley, said the envisaged Entrepreneurial Development Bank would be established under the AfDB’s Youth Entrepreneurship and Innovation Multi-Donor Trust Fund.
“We are committed to supporting entrepreneurs with focus on women, micro-enterprises and SMEs to have access to finance as well as equipping them with skills development,” she said, adding, “Our targeted goal is to ensure that they have businesses that are sustainable.”
Dar es Salaam. The African Development Bank (AfDB) is considering establishing a development bank that will specifically cater for the funding needs of micro and small and medium enterprises (MSMEs) in Tanzania.
Cabo Verde: Cabo Verde Prime Minister, African Development Bank Head Affirm Commitment to Strengthen Island Nation's Economy from Exogenous Shocks (African Business)
The African Development Bank Group (www.AfDB.org) President Dr Akinwumi Adesina has met with Cape Verde Prime Minister José Ulisses de Pina Correia e Silva on an official visit to the institution’s headquarters in Abidjan. The two discussed the economic situation of Cabo Verde and emphasized the need to strengthen the country’s emergence in the face of exogenous shocks such as the war in Ukraine and the Covid-19 pandemic.
Prime Minister de Pina Correia e Silva expressed his admiration for the way in which the Bank helps African countries to address key development challenges and emerging issues. In particular, he welcomed the Bank’s support in the fight against Covid-19 and the Zika Virus, which have enabled the country to preserve its economy.
Adesina praised the Cabo Verde government for its “rapid and effective” response to the Covid-19 pandemic, which mitigated its shock. He particularly noted how the country had managed to re-open its economy as early as October 2021, in tandem with the vaccine roll-out. “It is important to note that by the end of June 2022, 85.2% of the population was fully vaccinated, in contrast with an African average of 16%. I congratulate you and your government for this remarkable effort,” Adesina said.
Sh7 trillion pacts expected to create 500,000 jobs in Tanzania (The Citizen)
Exhibitors at the 46th Dar es Salaam International Trade Fair (DITF) inked a total of 19 Memorandum of Understanding (MoUs) that spell out how local and foreign investors could work together in the advancement of their common interests.Out of the number, nine – valued at $3 billion (about Sh6.9 trillion) - are those under the Sino-Tanzania Industrial Park which will create over 500,000 direct and indirect jobs upon successful execution.
Speaking at an event to officially close the 46th DITF in Dar es Salaam yesterday, Ministry of Investment, Industry and Trade’s permanent secretary Godius Kahyarara said negotiations for 16 more contracts - under the Export Processing Zone Authority (EPZA) – were still on going.
Neal Applauds Launch of the U.S.-Kenya Strategic Trade and Investment Partnership (Ways and Means Committee)
Today, House Ways and Means Committee Chairman Richard E. Neal (D-MA) applauded the launch of the United States-Kenya Strategic Trade and Investment Partnership: “Today’s announcement that the United States will be furthering our partnership with a key trading partner, Kenya, is a welcome advancement in our trade relationship, and I thank USTR Ambassador Tai for her leadership in launching this initiative.”
African trade and integration
Economic Development in Africa Report 2022 (UNCTAD)
Economic Development in Africa Report 2022 shows that neglecting the potentially transformative role of high knowledge-intensive services, such as information and communications technology services and financial services, is among the key reasons why export diversification remains a challenge in Africa.
The report shows that effectively addressing barriers to services trade under the African Continental Free Trade Area will be key to unleashing the transformative role of services in enhancing the diversity and complexity of products from Africa.
UNCTAD recommends that for export diversification strategies to be impactful in Africa, policies need to be in place that enhance inclusive access to innovative financing technologies, including for small and medium-sized enterprises. Leveraging high knowledge-intensive services to increase productivity and improve competitiveness in the private sector will be key to achieving higher value-added diversification and growth under the African Continental Free Trade Area.
Nigeria: New UN resilience project paves 'pathway to peace and sustainable development' (UN News)
The Resilience and Social Cohesion project, launched by the UN Children’s Fund (UNICEF) and World Food Programme (WFP), will enhance peace, increase livelihood opportunities, and provide education, health, nutrition, child protection, and sanitation support to vulnerable populations in Borno and Yobe states.
Funded to the tune of €40 million from the German Government, the three-year humanitarian package targets children from birth up to two years of age, pregnant women, school-age children, adolescent girls, female-headed households, and people with disabilities.
“Children and other vulnerable groups will have a lifeline, and an opportunity to survive and thrive in communities where livelihood and peace building activities are present,” the UNICEF Representative spelled out.
Solar, wind trade groups team up to drive Africa investment (reNEWS)
SolarPower Europe and GWEC have signed an agreement with RenewAfrica and the AFSIA to jointly organise the Africa Renewables Investment Summit (ARIS), an event that seeks to catalyse renewable energy investment for African countries.
Despite the continent’s massive renewable energy potential, Africa received 2% of the $2tn that was invested in renewable energy globally between 2000 and 2020.
The summit in Cape Town will gather renewable developers, institutional investors, development finance institutions, technology suppliers and African government stakeholders to explore ways to harness Africa’s renewable energy potential, with some investment set to be facilitated right at the event.
Africa World Trade Network Launched (Peace FM Online)
On Tuesday, July 12, 2022, officials from the Ministry of Trade, diplomats and multi-faceted entrepreneurs converged on the Kempinski Hotel for the launch of the Africa World Trade Network (AWTN).
In the wake of the Africa Continental Free Trade Agreement (AfCFTA), AWTN seeks to lead the way in pursuing tailored trade solutions in the best interest of Africans.
The Secretary-General of AfCFTA, H.E Wamkele Mene, in his speech lauded the initiative and made an audacious call to African leaders to dissolve barriers to free movement of Africans across the continent.
AfDB, COMESA Sign US$550,000 Grant to Conduct Study on Developing Africa Cloud Ecosystem (COMESA)
The African Development Bank and the Common Market for Eastern and Southern Africa (COMESA) have signed a Letter of Agreement for a US$550,000 NEPAD Infrastructure Project Preparation Facility grant to support a feasibility study for setting up an Africa Cloud Ecosystem (ACE) project.
The agreement was signed by the AfDB Zambia, Country Manager, Dr. Raubil Durowoju and COMESA Assistant Secretary General, Dr Kipyego Cheluget on behalf of Secretary General, Chileshe Kapwepwe, at the COMESA Secretariat in Lusaka, Wednesday,13 July 2022.
“The Africa Cloud Ecosystem project will be a first of its kind, laying the foundation to facilitate the African continent to undertake this shift in the key sectors of economy, education, government, agriculture and health through the provision of a reliable ecosystem of datacentres,” Dr Durowoju said.
Southern African bloc further extends Mozambique troop deployment (Reuters.com)
Southern African countries agreed on Thursday to extend their troop deployment in Mozambique for another month to help it fight an Islamic State-linked insurgency. The countries, linked in the Southern African Development Community (SADC), agreed last year to send troops to Mozambique
The mission's mandate was set to end on Friday but has been extended on an interim basis until an SADC heads of state summit in mid-August, when a more detailed report on the mission's progress will be considered.
Trans-Saharan Gas Pipeline Offers Hope for Europe (Horn Observer)
Europe is still looking for reliable alternative sources of energy especially gas, as its energy relations with Russia have nosedived. It has been exploring energy sources from the Asian region and Africa. While African energy sources exist, Africa lacks the needed infrastructure to transport them to Europe. Transporting gas would require clearance agreements across the various African borders
The Trans-Saharan gas pipeline (also known as NIGAL pipeline and Trans-African gas pipeline) was first proposed back in the 1970s. The inter-governmental agreement on the pipeline was signed by Energy Ministers of Nigeria, Niger and Algeria on 3rd July 2009 in Abuja. It has not materialized, among due to financial constraints and complicated government bureaucracy.
Mahamane Sani Mahamadou, Minister of Petroleum for the Republic of Niger; Mohamed Arkab, Minister of Energy and Mines, Algeria, and Chief Timipre Sylva, Minister of State for Petroleum Resources of Nigeria as well as the Director Generals of National Oil Companies (NOCs) of the three African countries have held thorough discussions on the implementation of the multi-billion Trans-Saharan Gas Pipeline (TSGP).
According to reports, a Steering Committee made up of the three Ministers and Director Generals of the NOCs, established during the two-day meeting, will be responsible for updating the feasibility study for TSGP and will meet at the end of July 2022 in Algiers to discuss the progress.
Dr Omar Alieu Touray Assumes Office as New President of the ECOWAS Commission (African Business)
Dr. Omar Alieu Touray, a Gambian National, has assumed office as the new President of the ECOWAS Commission for a four-year tenure. He takes over from Jean-Claude Kassi Brou, an Ivorian National, who has piloted the affairs of the Commission from 2018 till date. Other statutory management appointees inaugurated include Damtien L. Tchintchibidja, Vice-President of the ECOWAS Commission, Prof. Nazifi Abdullahi Darma, Commissioner for Internal Services, Dr. Abdel-Fatau Musah, Commissioner for Political Affairs, Peace, and Security, Mme Massandjé Toure-Litse, Commissioner for Economic Affairs and Agriculture, Mr. Sédiko Douka, Commissioner for Infrastructure, Energy and Digitalisation and João Alage Mamadu Fadiá, Auditor-General.
AfDB regional funding to improve and promote regional integration (ESI Africa)
The Board of Directors of the African Development Bank Group (AfDB) has approved a $175 million Trade Finance Funded Risk Participation Agreement facility for the Eastern and Southern African Trade and Development Bank (TDB) to improve regional integration.
The agreement is expected to boost intra-Africa trade, promote regional integration and contribute to the reduction of the trade finance gap in Africa.
The Bank will provide liquidity of up to 50% (the other 50% to be matched by TDB), to issuing banks on a risk share basis and facilitate the issuing on a risk share basis, to support trade activities of local corporates and SMEs in member countries of the Common Market for Eastern and Southern Africa (COMESA).
Akufo-Addo swears in members of National African Peer Review Mechanism Governing Council (Myjoyonline)
It will be recalled that the African Peer Review Mechanism (APRM) was adopted by Member States of the African Union (AU), within the framework of the New Partnership for Africa’s Development (NEPAD), as a self-monitoring tool.
The APRM is a vehicle for sharing experiences, reinforcing best practices, identifying deficiencies and assessing capacity-building needs to foster policies, standards, and practices that lead to political stability, high economic growth, sustainable development and accelerated regional and continental integration.
President Akufo-Addo has sworn into office the members of the Governing Council of the National African Peer Review Mechanism on Thursday.
Ghana: Afreximbank Takes Trade, Investment Drive to Caribbean... to Hold Maiden Actif in Barbados (Top Africa News)
The maiden AfriCaribbean Trade and Investment Forum (ACTIF) aimed at boosting trade and investment between Africa and the Caribbean will be held in the Republic of Barbados.
Slated for September 1-3, 2022 it is being convened by the African Export-Import Bank (Afreximbank) 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.
A media advisory issued by Afreximbank yesterday said the main goal of the forum was 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.
SOUTHERN AFRICA: Fresh hopes for investment as SADC adopts public finance management law (Daily Maverick)
The 51st Plenary Assembly session of the Southern African Development Community (SADC) Parliamentary Forum (PF) on 14 July 2022 adopted the much-anticipated Model Law on Public Financial Management (PFM), raising hopes in a region in which lack of accountability in the use of public funds has perennially jinxed socioeconomic development.
The Speaker said the management of public finances across SADC member states continued to face various challenges such as corruption, misappropriation, overspending and other forms of illicit financial flows.
In an impassioned and factual submission, Nelly Butete Kashumba Mutti, the Speaker of the National Assembly of Zambia, enjoined the Plenary to adopt the model law. She said the PFM affects all aspects of any nation’s life as it is the fulcrum upon which the implementation of all government programmes hinges.
NEPC, SMEDAN sign pact to expand exports in W/Africa (Daily Trust)
The Nigerian Export Promotion Council (NEPC) and the Small and Medium Enterprises Development Agency (SMEDAN) have signed a Memorandum of Understanding (MOU) geared towards facilitating the first West African MSME (WAMSME) Export Opportunities Exhibition.
Speaking at the MOU signing in Abuja, the Executive Director of NEPC, Dr Ezra Yakusak, said the collaboration was aimed at enhancing the visibility of Made-in-Nigeria goods and services within West Africa.
Beyond Covid-19: Strengthening Africa’s health systems to address current and future health priorities (Mail and Guardian)
All of the speakers agreed that significantly more financing is required for stronger African health systems. The goal is for each African country to spend 15% of its budget on healthcare; at present the average is closer to 3%.
Dr Ahmed Ogwell Ouma, Acting Director, Africa CDC (Africa Centres for Diseases Control and Prevention) said that to boost African countries’ pandemic responses, health systems need to be strengthened to manage crises as fast as possible and information must be made available to the public.
As the Covid-19 pandemic develops, African countries’ response strategies must shift from crisis response to long-term control strategies. The momentum of Covid-19 management must be integrated into broader health systems to achieve health equity and health security, while also ensuring that other health issues and deadly diseases are prioritised.The continent’s leading health experts and policymakers discussed these issues in a webinar hosted by the Mail & Guardian and organised by The Conversation Africa and Global Health Strategies, with Devex as a media partner.
Global economy
Divided Over Russia, G-20 Aims at Food Security, Debt Crises (Bloomberg)
Group of 20 finance chiefs started official meetings in Bali Friday with an eye toward progress on food security and debt issues as tensions over Russia impeded prospects for a more sweeping agreement.
Host Indonesia is pushing for G-20 members to pledge more concrete action to respond to food insecurity, including by sharing data on commodity stockpiles, and for them to coordinate better on macroeconomic policies, according to a person familiar with the discussions.
The G-20 discussions have been “very difficult but sometimes fruitful,” Sri Mulyani Indrawati, Indonesia’s finance minister, said in opening remarks for the Friday meetings. “Despite all our differing positions, we have been able to make tangible progress on some critical issues.”
G20 finance meeting under Ukraine cloud (Manning River Times)
G20 finance leaders are meeting on the resort island of Bali, as host Indonesia tries to find common ground in a group frayed by the Ukraine war amid rising economic pressures from soaring inflation.
Russia's invasion of Ukraine has overshadowed recent previous meetings by the Group of 20 major economies, including last week's gathering of foreign ministers.
G20 members include Western countries that have imposed sanctions on Russia and accuse it of war crimes in Ukraine - which it denies - as well as nations like China, India and South Africa, which have been more muted in their responses.
US Treasury Secretary Janet Yellen said on Thursday the war was causing a negative spillover globally and Russian officials had no place at the G20 meeting.
UNCTAD convenes consumer protection talks amid heightened vulnerability (UNCTAD)
Ministers, high-level government representatives, experts, civil society and private sector representatives will next week discuss how to better protect consumers amid the global cost-of-living crisis during meetings organized by UNCTAD.
The sixth session of the Intergovernmental Group of Experts on Consumer Protection Law and Policy will take place from 18 to 19 July, followed by the twentieth session of the Intergovernmental Group of Experts on Competition Law and Policy from 20 to 22 July, in Geneva and online.
High-level speakers will discuss pressing and timely consumer protection issues related to financial consumers, health services and international trade of unsafe products.
Policy Makers and leading stakeholders from around the world have called for a united global effort to combat ongoing crises and deliver meaningful change and sustainable development. These issues were emphasized during the “Messages from the Regions” session during the 2022 High-Level Political Forum on Sustainable Development (HLPF). The HLPF is an annual gathering of government, civil society, youth and private sector representatives from around the globe to address pressing socioeconomic issues and propose a sustainable way forward for the planet.
The session heard interventions from environmental stakeholders across the globe, including Arlette Soudan-Nonault, Minister of Environment and Sustainable Development of the Republic of Congo and technical coordinator of the Congo Basin Climate Commission. She highlighted the importance of operationalizing Blue Funds in the region, with the support of ECA.
The Session stressed the importance of regional and sub-regional approaches to crisis recovery, through cooperation between countries and the sharing of lessons and best practices amongst partner countries. As we approach the halfway mark between the adoption and finish line of the 2030 Agenda, such partnerships will be key in accelerating progress. Regional visions such as Agenda 2063 of the African Union complement these global efforts and provide the needed context-specificity for inclusive development that is meaningful and impactful for our communities.
Soaring dollar risks widening US trade deficit (The Africa Logistics)
For the first time in over two decades the exchange rate between the US Dollar and the Euro has hit parity meaning that the two currencies are worth the same amount.
The dollar is the world’s reserve currency, which means it is used in most international transactions.
In a nutshell Americans will have great spending power now than ever before.
On the flipside, the US is likely to experience a bigger trade deficit as countries shy away from buying their products.
U.S. Secretary of Commerce Gina Raimondo Appoints New Members of the President's Advisory Council on Doing Business in Africa (US Department of Commerce)
Secretary of Commerce Gina Raimondo has appointed 24 members to the President’s Advisory Council on Doing Business in Africa (PAC-DBIA) to serve a two-year term. The PAC-DBIA was established in 2014 to provide recommendations and analysis to the President, through the Secretary of Commerce, on strengthening commercial engagement between the United States and Africa.
Over the next two years, the PAC-DBIA will serve as an important source of private sector input helping to advance the Biden Administration’s commitment to expanding and deepening U.S. commercial partnerships in Africa that are grounded in shared interests, support, and mutual respect and responsibility. The PAC-DBIA will advise the President on facilitating U.S. business participation in economic sectors critical to economic recovery from recent global crises and inclusive long-term growth across Africa, creating jobs in the United States and Africa through trade and investment, building the capacity of Africa's youth and entrepreneurs to develop trade and investment ties with partners in the United States, and developing and strengthening partnerships and other mechanisms to increase U.S. public and private sector financing of trade with and investment in Africa
A Chinese port in Nigeria will change the world economy (Nikkei Asia)
A milestone was reached this month when a Chinese vessel became the first ship to berth at Nigeria's first deep-water port in Lekki that was financed by the China Development Bank and built by Lekki Port LFTZ Enterprise, a special purpose vehicle owned by a group of investors led by state-owned China Harbour Engineering and Tolaram Group, a Singapore-based conglomerate, and including local and federal Nigerian governments.
According to Nigerian Ports Authority managing director Mohammed Bello-Koko, the arrival of the megaship from Shanghai was historic, signifying not only Nigeria's readiness to take trade facilitation a notch higher but also the port's potential to help optimize the African Continental Free Trade Area, a pact connecting 1.3 billion people across 55 countries that the World Bank believes can transform Africa's economies.
Just 60 km east of the world's 15th largest city and Africa's largest metropolis Lagos, the port will increase its container-carrying potential from 3,000 containers to up to 20,000 containers. It will also allow up to 5 megaships to berth at the same time, putting Nigeria light years ahead of what is presently available in alternative Nigerian ports at Tin Can Island and Apapa.
EU Slows on Ukraine Aid as Bloc Girds for Economic Pain (Bloomberg)
High-profile aid to Ukraine that the EU promised in May seems to be shifting to the back burner as the bloc faces the prospect of severe economic pain at home. While commission President Ursula von der Leyen proposed sending 9 billion euros in emergency loans to Ukraine, so far, the EU has only managed to agree on an initial tranche that covers a ninth of that target. When finance ministers discussed the issue this week, we learned that economy commissioner Paolo Gentiloni told them that governments need to ensure the economic response to the war’s fallout at home is strong enough to avoid the risk of fatigue among Europeans. Heading into the traditionally sleepy summer period in Brussels, the EU will face new challenges as the specter of a total cut-off from Russian gas and the tightening of monetary policy risk pushing the region into a second recession in two years.
World Bank Group Responds to Overlapping Crises with Nearly $115 Billion in Financing in Fiscal Year 2022 (ReliefWeb)
In its just-completed fiscal year 2022 (FY22), the World Bank Group responded with unprecedented scale to overlapping global crises, providing advice and financing in response to the sharpest economic slowdown in eight decades, rising inflation, deepening food insecurity, war and fragility, and the continued negative impact of the COVID-19 pandemic.
“Developing countries are facing multiple challenges—from war to surging food and energy prices—which deepen inequality and lead to reversals in development gains,” said World Bank Group President David Malpass. “The World Bank Group has responded with urgency, scale, and impact. We have committed consecutive surges of financing, analytical support, and policy advice, first in response to the COVID-19 pandemic, and now to address the food crisis, the war in Ukraine, and its spillover effects.”
Amid these devastating crises, the World Bank Group deployed a record $114.9 billion in FY22 (July 1, 2021-June 30, 2022). Commitments during FY22 were informed by our knowledge work and helped countries address rising food prices, manage refugee flows, bolster health preparedness, maintain private sector trade, and support efforts to mitigate and adapt to climate change, among others, benefitting especially the poor and most vulnerable.
FTAs will stimulate trade, spur recovery (China Daily)
China will make full use of free trade agreements to guide export-oriented companies to explore overseas markets, while encouraging exports of innovative, green and high value-added products to bolster their competitiveness, said the Ministry of Commerce on Thursday.
As the country's foreign trade still faces uncertainties in the second half, the government will urge related parties to lower exporters' corporate financing costs and shipping expenses, and accelerate the progress of export tax rebates, Shu Jueting, a ministry spokeswoman, said.
UK-China trade talks on ice as hawks vie to replace Boris Johnson (POLITICO Europe)
Boris Johnson's government paused two key sets of trade and economic talks with China amid a backlash from Tory MPs and hawkish statements from candidates vying to replace him as U.K. prime minister. The outgoing British leader's administration has put two sets of talks that businesses were expecting to take place later this month back on ice, according to three people familiar with the discussions.
The decision to keep them in limbo has some British businesses worried, while human rights campaigners are claiming victory and hoping Conservative leadership contenders will keep the talks paused.
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Both the South African and Angolan economies are abound with opportunities that the South African and Angolan businesspeople can take advantage of and explore in order to produce food products for the two countries for the purpose of food security. This was said by the President of the Angola-South Africa Chamber of Commerce and Industry, Dr Victoriano Nicolau. He was speaking on the sidelines of a business networking session that was hosted by the Department of Trade, Industry and Competition (the dtic) in Luanda, Angola.
“The far-reaching and negative impact of the Ukraine-Russia conflict on food security provides a timely and perfect opportunity for businesspeople from Angola and South Africa to think about how they can work together to come up with ways and means of plugging the gap created by the shortage of products that we import from other countries as a the result of the conflict,” said Nicolau.
He added that there were unlimited opportunities in the agricultural and agro-processing sectors that companies from Angola and SA could collaborate in to produce food products for the two countries in particular, and the SADC region in general, in order to be self-sufficient.
Uganda, South Africa agree to deepen cooperation (New Vision)
Uganda and South Africa have agreed to strengthen cooperation in agriculture, energy, trade, health, finance, tourism and investment. During the 2nd session of the Joint Commission of Cooperation between Uganda and South Africa, the State Minister for Foreign Affairs, Henry Okello Oryem, noted that the good relationship will create an enabling platform that allows the two countries’ public and private sectors to discuss business challenges, identify opportunities, share experiences and create business networks.
Traders urged to use customs advance rulings (Namibian)
NAMIBIAN traders have been encouraged to use advance rulings to reduce the time spent at the border, which would further contribute to reducing the cost of doing business, improve Namibia’s performance and rating in the trading across borders index as well as the ease of doing business. This was said by the executive secretary of the Southern Africa Customs Union (Sacu) Paulina Elago at the launch of the advance ruling programme in Namibia yesterday. Advance rulings are binding decisions by customs at the request of a trader on specific particulars in relation to the intended importation or exportation of goods. They can be requested regarding either the classification, the origin or the customs value of the goods in preparation for importation or exportation. Elago said the launch of the advance ruling in Namibia has come at an opportune period, as globally nations are recovering from the effects of the Covid-19 pandemic.
“This initiative will also go a long way in responding to the broader international framework of the World Trade Organisation (WTO) trade facilitation agreement that places an obligation on WTO members to issue advance rulings in respect of tariff classification, origin and valuation matters,” she said.
Zim exporters can tap UK, Ghana markets (The Herald)
ZIMBABWEAN exporters should take advantage of national trade promotion and development body, ZimTrade’s, trade missions to diversify exports into the United Kingdom (UK) and Ghana as well as unlock opportunities in the wider African Continental Free Trade Area (AfCFTA). ZimTrade chief executive officer Mr Allan Majuru said this in a speech read on his behalf by the agency’s operations director Mr Similo Nkala during a UK and Ghana market survey dissemination seminar in Harare on Tuesday. Zimbabwe’s national trade development and promotion organisation conducted the survey in the two markets in May this year.
”The UK is heavily dependent on imports for most of its products and the market survey that was conducted by our team aimed to gather information on what type of produce Zimbabwe can export to that country following the signing of the Economic Partnership Agreement. “Historically, we all know that the UK was a traditional trading partner for Zimbabwe where we exported a wide range of products.
“At one time, the UK was among the top five export markets for Zimbabwe,” said Mr Majuru, adding that the UK market was heavily dependent on imports for most of its products and the market survey that was gathered by the agency aimed to gather more information on what type of products Zimbabwe can export to that country.
“In our endeavour to diversify our exports markets as well as take advantage of the AfCFTA, this year we targeted the Ghana market, which is in West Africa (a first for us to explore this region).
“Our plan is that as we penetrate the Ghanaian market, it will be a springboard into other West Africa countries using the AfCFTA trade agreement. Buyers in these markets don’t know much about some of our brands, therefore, we need to invest a lot in terms of brand development. This should be both at company level and us as your trade promotion organisation investing into the promotion of our brands as a nation,” he said.
African Development Bank and partners to work together on Zimbabwe’s debt action plan (AfDB)
Zimbabwe has received reassurance of support for a strong push to help it clear its debt arrears. African Development Bank Group President Dr. Akinwumi Adesina, representatives of multilateral finance institutions, the Zimbabwean government, and other partners have agreed to work together to develop an action plan that will resolve the country’s debt arrears. Zimbabwe owes $13.5billion to multilateral financial institutions, bilateral partners, and other creditors.
The African Development Bank supported Zimbabwe with $13.8 million under the Bank’s Covid Response Facility. The Bank has focused on strengthening the country’s public finance management capacity through a Transition Support Facility. It will also provide Zimbabwe with $4.2 million in technical support for the implementation of its arrears clearance and debt resolution strategy.
Growing Kenya’s share of exports to African markets (Business Daily)
Kenya is expected to rise above the waves of the Covid-19 pandemic in terms of economic recovery, according to the 23rd Edition of Kenya Economic Update recently launched by World Bank. The Economic Survey 2022 shows Kenya’s real GDP grew by around 7.5 percent in 2021, compared to a contraction of 0.3 percent realised the previous year.
There has been gradual, normalisation in economic activity in most sectors, including manufacturing and exports. Against the back of a weaker global economy due to the effects of the pandemic, Kenya has shown signs of resilience in most sectors. The total exports in 2021 grew to Sh743.7 billion compared to Sh643.7 billion in 2020 — an increase of 15.5 percent.
Vegetables, fruits sold locally get new safety standards (Business Daily)
Local consumers of horticulture produce are now assured of their safety following the unveiling of new standards, a departure from the previous practice where only export commodities were subjected to quality checks. The launch of the Kenya Bureau of Standards backed KS1758 will now ensure that whatever is consumed locally is also safe for consumers and adheres to international practice on the minimal levels of pesticides accorded to exports. The bulk of Kenya’s horticulture produce is consumed locally with only four percent finding its way to the export market.
The rolling out of the standards started last week with the launch at Beyond Fruit, a local outlet dealing with fresh produce. The new safety code has also been rolled out in the Kongowea market starting with mchicha- a popular traditional vegetable at the coast. It will also be rolled out in hotels and restaurants as well as other open-air markets. The produce that has been certified as being safe will be clearly labelled on the shelves with the new standard.
Current account widens over oil, food import bill (Business Daily)
Kenya’s current account deficit widened further in May on sustained pressure from high fuel and food import costs, which negated improved dollar inflows from remittances and agriculture exports. The deficit as a percentage of GDP rose to 5.3 percent in the 12 months to May 2022 from 5.1 percent in April, piling more pressure on the shilling as it meant there was a higher demand for dollars in the local market to fund the rising imports. The current account measures the difference between a country’s forex inflows and outflows, falling into deficit when outflows are higher.
Higher crude and food prices in the global market-driven in part by the Russia-Ukraine war—pushed Kenya’s inflation to a 58-month high of 7.9 percent in June, breaching the government’s upper limit target for the first time since August 2017.
“A widening current account deficit, amid a fuel-linked increase in the import bill, has elevated the local demand for US dollars and as such sustained the Kenya shilling’s depreciation by an average 4.56 percent this year,” said NCBA in a weekly fixed income note.
Kenya intercepts scrap metal to TZ despite ban (Business Daily)
Kenya has intercepted illicit scrap batteries destined for Tanzania barely two months after the State lifted a ban on dealings in scrap metal. Authorities on Monday intercepted a truck along Mombasa Road ferrying scrap batteries to neighbouring Tanzania.
The government in May issued strict regulations that require licensed scrap metal dealers to transport their cargo between the prescribed 6.30am and 6.30pm.With the new regulations in place, the State lifted a January 20, 2022 ban that President Uhuru Kenyatta imposed on scrap metal business following a surge in vandalism of critical national assets including power transformers. The new rules impose a Sh10 million fine or a three-year jail term to anyone found operating without a license.
Rwanda eyes more trade with ECCAS bloc (The New Times)
Rwanda plans to put more efforts in its trade with the Economic Community of the Central African States (ECCAS), a bloc where the country is exporting far more than it imports and has more economic opportunities, the Minister of Trade and Industry has said. Béata Habyarimana made the remarks on Wednesday, July 13 while interacting with Senators, Members of the Committee on Foreign Affairs, Cooperation and Security on the trade benefits that Rwanda gets from regional and continental organisations.
According to data from the Ministry of Trade and Industry, Rwanda’s trade with other ECCAS countries amounted to Rwf171.9 billion in 2021 from Rwf88.2 billion in the previous year. This figure includes Rwanda’s exports worth over Rwf155.4 billion (or 90 percent of total trade) to those countries and its imports from them worth over Rwf16.4 billion.
Museveni and the illusions of middle income (Monitor)
Last month, during the State-of-the Nation Address we were astounded with an incredible announcement that Uganda was now a lower middle income country having crossed the threshold of an average national income estimated at just over $1,000. The World Bank uses $1,045 as the threshold of Gross National Income (GNI) per person (total income including money by nationals from abroad but not foreigners in the country). Last Thursday, the World Bank released a report that contradicted Mr Museveni’s claims of middle income status, insisting that at $840 GNI per person, Uganda was still a poor, low-income country.
Then on Wednesday, the head of Uganda Bureau of Statics dug in on the government side about the promised land of ‘middle income’. The difference between the World Bank’s $840 and the government’s quoted figure of $1,046 is huge.
DR Congo cancels 14 customs levies in bid to smooth trade (The East African)
The Democratic Republic of Congo’s Trade ministry has ordered the cancellation of 14 levies on exports and imports and the reduction of 20 more duties at the borders in a bid to make trading more smooth and stamp out “illegal” taxes. Africa’s biggest copper producer and the world’s biggest cobalt producer, Congo has battled with lengthy queues of trucks carrying metal at its borders, which mining companies blame on poor infrastructure and inefficient customs systems. The move aims to “rationalise import and export taxes and reduce costs and delays”, Trade minister Jean-Lucien Bussa Tongba wrote in a letter to the prime minister dated July 6 and seen by Reuters on Wednesday.
Sierra Leone jumps in for exploration offering (Energy Voice)
Sierra Leone is in the midst of a licence round as it aims to cash in on a return of interest to the energy sector. Petroleum Directorate of Sierra Leone (PDSL) director general Foday Mansaray struck a bullish tone in comments to Energy Voice last week. Sierra Leone launched the round on May 18, he said. “We saw the positive oil prices and realised this was a good time to take action. Europe is thinking again about energy security and where energy supplies will come from,” he said. The West African state aims to “fill that void. The opportunity is now.”
African trade and integration
UNCTAD urges African countries to rethink export diversification to survive economic shocks (UNCTAD)
African countries must diversify their exports to survive economic shocks from global crises such as the COVID-19 pandemic and the war in Ukraine, says the United Nations Conference on Trade and Development (UNCTAD). In its Economic Development in Africa Report 2022 published on 14 July, UNCTAD says African countries can diversify their economies through boosting exports of high-value services, expanding private businesses’ access to financial services, tapping into new financial technologies and implementing effective policies. Despite decades-long efforts to diversify, 45 out of the continent’s 54 countries remain dependent on exports of primary products in the agricultural, mining and extractive industries. UNCTAD considers a country to be dependent on commodities when these products make up more than 60% of its total merchandise exports. The report outlines how African countries can rethink efforts to diversify their economies.
AfCFTA: Inconclusive rules of origin, trade in services delay commencement – NAC (Daily Sun)
Secretary, National Action Committee on African Continental Free Trade Agreement (AfCFTA), Francis Anatogu, has disclosed that trade was yet to commence due to delays in the conclusion of negotiations on rules of origin and trade in services. Anatogu, who made the remark while speaking on the theme: “Implementing AfCFTA in Nigeria – the journey so far,” noted that although official commencement date of trading under the AfCFTA was January 1, 2021, as at May 31, 2022, rules of origin have been concluded on 88 percent of tariff lines.
However, the outstanding rules of origin on automobiles, textile and apparels, fisheries, sugar and tobacco, under discussion centre on how to treat goods produced within free trade zones and special economic zones.
The Financial System Africa Needs - Vera Songwe (Project Syndicate)
For African economies that have yet to recover from the COVID-19 pandemic, Russia’s war in Ukraine could not have come at a worse time. The economic wounds of the previous crisis had been stitched up, but more time was needed for them to heal, let alone for the scars to fade. Now, commodity-price spikes and supply-chain disruptions are compounding inflationary pressures, causing currencies to depreciate and food and fuel costs to skyrocket. Since the war began, oil prices have reached their highest levels since 2008, wheat prices have soared to 14-year highs, and fertilizer prices have surged by nearly 30%. These macro trends have high human costs. As many as 25 African countries depend on wheat imports from Russia and Ukraine.
With grain products often accounting for a large share of local diets, the risk of hunger and undernourishment is rising fast – and not just for low-income households.
But many African governments have little scope to respond to this escalating crisis. Pandemic-related uncertainty led to massive capital flight from the continent, output shrank, and countries’ debt burdens grew heavier. Over $40 billion in debt repayments were due in 2021, and debt service is expected to exceed 7% of Africa’s GDP in 2022 even before the Ukraine crisis and the US Federal Reserve’s interest-rate hikes.
SADC Ministerial Task Force Reviews Policies and Strategies for Enhancing Growth in Regional Trade (SADC)
Implementing the Southern African Development Community (SADC) Industrialisation Strategy and Roadmap (2015-2063) remains a key priority, therefore, there is a need to create a conducive environment for trade to continue flourishing in the region, Honourable Mark Katsonga Phiri, Minister of Trade and Industry of the Republic of Malawi, said.
Hon. Minister Phiri said this at the official opening during the 22nd Meeting of the Ministerial Task Force on Regional Economic Integration in Lilongwe, the Republic of Malawi, on 9th July 2022. He commended SADC Member States for their pragmatic decision to open up and resume economic and social activities while observing all necessary measures and precautions against the spread of the COVID-19 pandemic.
The Ministers urged Member States to incorporate some of the recommendations of the Industrial Upgrading and Modernisation Programme and Gaps analysis study which was undertaken in 2021 by the Secretariat, including establishment of industrial intelligence units and the Industrial Observatory functions in their national industrialisation programmes. On the same note, the Ministers directed the Secretariat to continue working with the SADC Business Council in implementing the study recommendations that require the involvement of the private sector.
Member States of the Southern African Development Community (SADC) need to step up efforts to accelerate intra-regional trade by addressing challenges that humper the region’s quest for increased trade in the SADC region. Honourable Mark Katsonga Phiri, Minister of Trade and Industry of the Republic of Malawi and Chairperson of the 33rd Committee of Ministers of Trade has said this during the official opening of the 33rd meeting of the Committee of Ministers of Trade which was held in Lilongwe, Republic of Malawi on the 8th July 2022. The Minister urged Member States to address issues that include low supply capacity, limited industrialisation, poor logistics for movement of goods and services, protectionism, poor infrastructure and non-harmonisation and cooperative mechanisms for cross-border infrastructure, imposition of non-tariff barriers including stringent rules of origin, poor implementation of trade commitments, among others.
The Ministers hailed the entry into Force of the Protocol on Trade in Services and urged Member States to widely publicise the Protocol; directed the Secretariat to fast track the development of the Regional Implementation Action Plan and urged those Member States that need technical assistance in the development of their National Implementation Action Plans to submit their requests to the Secretariat. The Ministers approved the SADC Simplified Trade Regime Procedure Manuals and related training materials which are aimed at building capacity of customs officials and other stakeholders and raise awareness on the SADC Simplified Trade Regime Framework.
East Africa’s Ports Step Up Competition Over Indian Ocean Trade Market Share: Report (allAfrica)
From the Horn of Africa on the strategic Red Sea to the buoyant ports of Mozambique, East Africa’s ancient “Swahili Coast” provides a logistical nexus between Africa’s massive population centres and other continents. Foreign direct investment is driving expansion and rehabilitation of existing seaports, while entirely new facilities are also being rolled out. Ports that shun partnerships with experienced foreign investors are set to lose out as competition for market share intensifies. One of the flagship infrastructure projects identified by the Government in Kenya Vision 2030 is the development of a new transport corridor linking a new and modern Port of Lamu with Garissa, Isiolo, Maralal, Lodwar and Lokichogio and branching at Isiolo to Moyale at the border with Ethiopia and proceeding to the border with Southern Sudan. The facilities at Lamu port once complete will lead to creation of substantial job opportunities that covers not only direct jobs related to the Port operation but also indirect jobs of all fields (Agriculture, fishery, manufacturing, logistics, transport, trade, commerce, etc.) No tender has yet been issued for the management of this port.
Congo’s entry into EAC doubles regional market (Business Daily)
The Central Bank of Kenya (CBK) has backed the admission of the Democratic Republic of Congo (DRC) as the East African Community (EAC) seventh member, saying the move will boost the regional bloc’s market by half to 300 million people and create new investment opportunities. “The admission of the DRC as the seventh member—joining Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda—expands the market size of the EAC, offers a path between the seas for trade and cultural integration, as well as new investment and employment opportunities for a dynamic population of about 300 million,” CBK said in a statement on Tuesday.
East African GDP jumps to Sh29trn after DRC joins bloc (Business Daily)
Central Bank welcomes DRC’s admission into the East Africa Community (Capital FM)
Trade finance grows for Ecobank as Africa emerges from pandemic (African Business)
With the global trading system emerging from the impact of Covid-19, the financial instruments and products that are used by companies to facilitate international trade and commerce – are becoming ever more important. Trade finance revenues for the world’s top transaction banks were up by 10% in 2021 and are set to grow further this year, after almost a decade of decline or stagnation, according to figures from research company Coalition Greenwich. The world’s 10 largest transaction banks posted a combined revenue of $6.3bn from trade finance in 2021, up from $5.7bn in 2020, surpassing pre-pandemic levels. In the second half of 2021, banks’ trade finance revenues grew by 13% year on year, driven in part by higher post-pandemic trade volumes and banks efforts to finance trade on behalf of SMEs, according to S&P Global.
The Board of Directors of the African Development Bank Group has approved a $175 million Trade Finance Funded Risk Participation Agreement facility between the African Development Bank and Trade & Development Bank (TDB). The agreement is expected to boost intra-Africa trade, promote regional integration, and contribute to the reduction of the trade finance gap in Africa. The Bank will provide liquidity of up to 50% (the other 50% to be matched by TDB), to Issuing Banks on a risk share basis, to support trade activities of local corporates and SMEs in member countries of the Common Market for Eastern and Southern Africa (COMESA). Together, the two institutions will provide a ticket size of $350 million to support trade transactions. This is a strategic effort by the African Development Bank to support the Africa Continental Free Trade Area’s agenda of reshaping markets and economies across the region by helping to boost output in the services, trade, manufacturing, and natural resources sectors.
African Ministers of Finance, Economy, Development and Environment are expected to meet ahead of the 2022 United Nations Climate Change Conference (COP27), and to participate in Egypt – International Cooperation Forum to ensure an African led position at the global meeting. Egypt is the host of COP27 and the Finance Day that will take place in November 2022. Ahead of these events, a high-level meeting of African Ministers with related mandates is expected to take place beforehand to deliver an articulate and strong African position. The ministers’ meeting scheduled for 7-9 September 2022, in Egypt, is being organised by the Government of the Arab Republic of Egypt with the support of the United Nations Economic Commission for Africa. Key international and regional partners will be invited to engage in the discussion and contribute to the development of key messages to be taken to COP27. African countries have called for delivery on finance to accelerate a green transition- and while development partners need to step up through upscaling public finance, the conference will also discuss how to better channel private finance into climate resilience on the continent and de-risk investments through Multilateral Development Banks’ contributions.
The meeting is an opportunity to address the continent’s specific challenges, potential, financing needs and innovative instruments for its development. African ministers will discuss Africa’s needs, ambitions and challenges regarding climate finance which is paramount to face challenges prevailing in the global environment. Egypt has already explored numerous innovative financing initiatives- we need to ensure that we can deliver a framework which allows new and additional resources to be invested in climate resilience from both public and private sources” said Mohamed Maait, Minister of Finance of Egypt.
Towards Climate Resilient Ocean Economies in Africa (AfDB)
Sustainable economic development based on the oceans and meeting the aspirations of individual countries, the African Union, economic actors and the African public has many different labels. The choice of either of the terms ‘blue’ or ‘ocean’ linked to ‘economy’ are used in different contexts, but the key attributes desired include minimizing damage to the environment and natural assets, generating benefits and opportunities equitably for people, and promoting resilience to climate change. This report uses the terms ‘blue economy’ and ‘ocean economy’ synonymously – as the business, local and national economies, citizens, beneficiaries and potential victims are the same. Natural ecosystem assets generate goods and services which are the primary resources of the blue or ocean economy, with annual benefit flows estimated at $20.8 billion for ten Western Indian Ocean countries and $47 billion for the five North African countries bordering the Mediterranean. The national dependence on ocean economy sectors varies, with the highest levels for Small Island States, where the estimated ocean output may be as high as 50% of Gross Domestic Product (GDP).
Impact of COVID-19 pandemic on African timber and wood products trade (AfDB)
Globally, the coronavirus pandemic (COVID-19) is killing thousands of people daily and has resulted in production and supply chain disruptions, termed as ‘supply-demand shocks’. The pandemic has caused ripple effects across all economic sectors including those linked to natural resources, manufacturing, services and entertainment. The impacts of the pandemic are being felt in Africa particularly because most national economies are commodity-dependent, and demand for commodities has generally declined over the first quarter of 2020 and may continue to decline if the future remains uncertain.
Global economy
Emerging markets need new engines of growth (Atlantic Council)
In 2022, the difference in growth between emerging and advanced economies is projected to shrink to its smallest level this century. Forecasts suggest developing nations will grow at just over half a percent more than advanced economies, ending a two-decade period during which emerging markets (EMs) consistently grew much faster than their rich counterparts. Prior to the 1990s, it was unusual for EMs to persistently grow more than their rich counterparts. From 1945 until 1995 fewer than one-third of developing economies grew faster than developed economies at any given time. Periods of explosive EM growth during one cycle were often reversed in the next. In the late 1990s, that changed. Starting at the turn of the century, EMs experienced a period of rapid growth that, if maintained, would have converged their income levels with advanced economies in a single generation. Unfortunately, it seems as though the era of rapid EM growth is over. Now, many of the world’s lesser developed economies risk being ejected from this economic convergence process. A confluence of factors, including trade conflicts, a global pandemic, supply chain breakdowns, rising interest rates, and the war in Ukraine, have dismantled the engines of growth that had supported their rapid development throughout the 2000s and 2010s. These factors may not only halt, but also reverse this trend in the 2020s.
ICC calls on the G20 to take the risk of a global debt crisis off the table (ICC)
Ahead of this week’s G20 Finance Ministers’ meeting, ICC is calling on G20 leaders to avoid a global debt crisis by suspending debt payments for all countries in need. Governments in emerging economies have very limited – if any – fiscal space to support business and families in dealing with the worrying inflationary pressures prevailing in global food, agricultural and energy markets. The wave of economic shocks caused by the war in Ukraine risks precipitating a widespread debt crisis in emerging markets which could result in further disruption to global trade and supply chains – thus placing a further drag on growth in advanced economies. As a recent report from the United Nations’s Global Crisis Response Group makes clear, there is now an acute risk of severe hunger in many developing economies absent of action to ensure that governments have the fiscal space to provide appropriate social safety nets.
Facing a darkening economic outlook: How the G20 can respond (IMF Blog)
When the G20 last met in April, the IMF had just cut its global growth forecast to 3.6 percent for this year and next—and we warned this could get worse given potential downside risks. Since then, several of those risks have materialized—and the multiple crises facing the world have intensified.
Recent indicators imply a weak second quarter—and we will be projecting a further downgrade to global growth for both 2022 and 2023 in our World Economic Outlook Update later this month. Indeed, the outlook remains extremely uncertain.
That is why we need decisive action and strong international cooperation, led by the G20. Our new report to the G20 outlines policies that countries can use to navigate this sea of troubles.
Improved online platform launched to ease access to product information (WTO)
The new ePing SPS & TBT Platform facilitates the tracking of sanitary and phytosanitary (SPS) and technical barriers to trade (TBT) measures, making it easier for users to notify and follow changes in product requirements.
The platform brings together all stakeholders involved in the process of notifying, consulting and coordinating on product requirements at the national and international level. The new ePing makes it easy for businesses, particularly micro, small and medium-sized enterprises, to track a specific sector or market through filtering options and offers several communication features to share information on and discuss notified measures.
Most major aid agencies are now transparent, but for how long? (Publish What You Fund)
The 2022 Aid Transparency Index reveals that more aid organisations than ever before are publishing good quality information and score “very good” or “good” in the global ranking. However, the whole data set could be under threat as the Aid Transparency Index, the only tool driving tangible improvements in data quality, is set to close for lack of funding.
Produced by Publish What You Fund, the Index is the only independent measure of aid transparency among the world’s major aid donors. At a time of climate, hunger, health and debt crises, and some worrying trends in the way official development assistance (ODA) is counted, transparency is more important than ever.
Improvements in the timeliness and quality of aid data, coupled with advances in tools and dashboards to enable easier access and analysis, have led to a dramatic rise in use of the data for activities as diverse as tracking global health finance investments, monitoring Covid spending, and helping recipient government’s track flows alongside their national spending.
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Local news
AfDB to lead Zim debt clearance roadmap (The Herald)
African Development Bank (AfDB) president Dr Akinwumi Adesina has formally accepted President Mnangagwa’s request to lead Zimbabwe’s debt clearance strategy, which is key for Harare to unlock fresh funding from international financial institutions (IFIs).
The AfDB president met President Mnangagwa at State House in Harare yesterday where he formally informed him that he had accepted a role to champion the debt and arrears clearance process because the region and the continent needed a stronger Zimbabwe.
Solidarity calls on Parliament to remove obstacles to private power generation (Engineering News)
Trade union Solidarity says it has submitted a petition to Parliament, demanding that all regulatory or legislative obstacles to unlimited private power generation be removed as a matter of urgency.
“By 2035, South Africa will need approximately 68 000 MW of private generation just to replace this coal fleet. We therefore have to move much faster just to maintain the current level of generation. For this reason, we urgently need to facilitate and encourage private generation,” Solidarity Research Institute head Connie Mulder states.
Niger Delta stakeholders harp on companies, host communities' cooperation for sustainable development (Tribune Online)
Members of Civil Society Organisation (CSO), community leaders and other stakeholders in the Niger Delta region on Tuesday harped on the mutual relationship among companies operating in the area and their host communities, as a panacea to sustainable development and a lasting solution to security in the environment.
Welcoming participants to the meeting, the convener of the event and Coordinator, Voice of the Earth Initiative (VOTI), Chief Sunday Ajele, said the meeting was organised to ensure that companies, especially the Okomu Oil Palm Company Plc, and its host communities live in harmony devoid of any infringement by the communities and the company on the mutual rights of the parties.
Ethiopia creditors to discuss debt restructuring on Monday (Reuters.com)
Ethiopia's creditors' committee will meet on Monday, a source briefed on the matter said on Tuesday, moving the cash-strapped African country a step closer towards restructuring its debts under a common framework set up by the Group of 20 economies.
The International Monetary Fund, the World Bank and others are pushing China and private creditors to accelerate work on debt treatments sought by Ethiopia, Chad and Zambia after glacial progress over the past year and a half.
IMF Managing Director Kristalina Georgieva told Reuters last week it was crucial to jumpstart a process that had failed to deliver a single result thus far, given worsening debt problems facing developing countries and even nations with middle-income economies.
Morocco: African Development Bank Commits €87 Million Loan to Widen Social Protection and Strengthen Health Services (African Business)
The Board of Directors of the African Development Bank Group (www.AfDB.org) approved an €87 million loan to implement the Support Program for the Generalization of Social Coverage in Morocco. The primary objective of this operation is to consolidate the foundations of a viable social protection program based on an integrated and inclusive approach. The program will contribute to extending social protection, particularly for early childhood, young people, and the self-employed.
African trade and integration news
New report highlights the leading role of cities in Africa’s regional economic integration (United Nations Economic Commission for Africa)
A new report by the United Nations Economic Commission for Africa (ECA) highlights the leading role of cities in unlocking economic gains made available through regional economic integration, particularly under the African Continental Free Trade Area (AfCFTA) agreement.
Launched yesterday, the report is the first piece of comprehensive research to assess the linkages between Africa’s rapid urban transition and regional trade integration. It seeks to answer several critical questions, including how African cities can benefit from AfCFTA, what strategic investments are needed for cities to drive accelerated regional trade integration and how AfCFTA may transform cities and spatial development across the continent.
In response to these questions, the report provides concrete steps for an increased policy focus on investment in Africa’s cities to realise the full economic potential from AfCFTA, thereby boosting economic growth, reducing poverty and fostering inclusion.
African Development Bank ranks first on Global Aid Transparency Index (African Development Bank)
Publish What You Fund, the global campaign for aid and development transparency, has named the African Development Bank the most transparent organisation in the world.
The Bank’s Sovereign Portfolio now ranks first out of 50 global development institutions in Publish What You Fund’s 2022 Aid Transparency Index, released today with a top score of 98.5.
The African Development Bank achieved the highest score in the Aid Transparency Index’s ten-year history and moved into the top spot from its fourth-place ranking in 2020. The Index is the only independent measure of aid transparency among the world’s major development agencies. The Bank has remained consistently in the ‘very good’ category since 2014. It has consistently demonstrated its commitment to increased transparency and its extraordinary progress over the past 10 years in providing high-quality information and becoming more transparent.
Member States of the Southern African Development Community (SADC) need to step up efforts to accelerate intra-regional trade by addressing challenges that humper the region’s quest for increased trade in the SADC region.
The Minister urged Member States to address issues that include low supply capacity, limited industrialisation, poor logistics for movement of goods and services, protectionism, poor infrastructure and non-harmonisation and cooperative mechanisms for cross-border infrastructure, imposition of non-tariff barriers including stringent rules of origin, poor implementation of trade commitments, among others.
SADC Executive Secretary, His Excellency Elias Mpedi Magosi underscored the importance of consolidating the SADC Free Trade Area (FTA) which is key to collective efforts to liberalise SADC intra-regional trade in goods and services.
SADC calls for joint sector coordination on pro-employment policies and strategies (SADC)
The Southern African Development Community (SADC) Joint Sector Ministerial Dialogue on job creation was held in Lilongwe, Republic of Malawi, from 8th to 9th July 2022 to promote joint sector coordination for job creation through coherent and harmonised action on employment and productivity across macro-economic and sectoral policies and strategies.
The Dialogue was attended by Ministers and Senior Officials responsible for Ministries of Finance and Planning, Industry and Trade, and Employment and Labour; SADC Business Council, SADC Private Sector Forum (SPSF), Southern Africa Trade Union Coordinating Council (SATUCC) and youth organisations. Representatives from the International Labour Organisation (ILO) and the United Nations Economic Commission for Africa (UNECA) also participated in the Dialogue.
Sadc registers progress on trade and finance programmes (Chronicle)
The Southern African Development Community (Sadc) says steady progress is being achieved on its programmes to facilitate industrial development, investment and trade in goods and services among member States.
This emerged out of the Trade, Industry, Finance and Investment (TIFI) thematic group hybrid meeting held recently to discuss progress on the implementation of the bloc’s programmes to deepen regional economic integration.
According to a joint update from the Sadc directorates of finance, investment and customs and industrial development and trade, 25 percent of the 64 outputs or deliverables from the TIFI Multi-Year Action Plan 2021-2023 have been completed. This has been aided by support from global partners.
Africa looks to private sector to fund ocean climate action (Star Tribune)
The U.N. says many of the financial climate promises made by richer countries are not being committed to in full, meaning that many African nations are unable to take necessary adaptation and mitigation measures against the effect of climate change.
Following on from Africa's Great Green Wall, which spans across the continent's Sahel region, east African nations are now seeking funds for the Great Blue Wall initiative, which aims to protect marine areas across the coastline. Both blue and green finance refers to funding aimed at preventing environmental damage and combating climate change while creating sustainable ecosystems.
Countries on Africa's west coast are increasingly turning to climate funding initiatives to boost livelihoods of oceanside communities, aid biodiversity and take climate action.
Uganda, South Africa Agree to Expedite AfCFTA to Bolster Post-Covid Economic Recovery Efforts (softpower.ug)
The governments of Uganda and South Africa have committed to enhance political, economic and social cooperation. This is contained in a joint communique issued by Okello Oryem, the Ugandan State Minister for Foreign Affairs, and Dr. Naledi Pandor, the South African Minister of International Relations and Cooperation, at the Second Session of the Uganda-South Africa Joint Commission for Cooperation held in Kampala.
To achieve sustainable prosperity, the JCC resolved that both countries should cooperate to expedite the implementation of the African Continental Free Trade Agreement (AfCFTA), which has become more critical to bolstering economic recovery efforts on the Continent post the Covid-19 pandemic.
The two Ministers also reviewed and exchanged views on the status of bilateral relations and expressed satisfaction with progress achieved in various areas of cooperation between the two countries which are contributing to the alleviation of poverty, elimination of inequality and creation of employment.
Africa Needs $424bn to Recover from Pandemic Devastation, Says Adesina (THISDAY Newspapers)
African nations need $424 billion this year to help them cope with the devastation caused by the coronavirus pandemic, according to the Head of the African Development Bank (AfDB), Akinwumi Adesina.
After decades of progress in the continent’s fight against poverty, Covid-19 has now plunged 30 million Africans into “extreme poverty” in 2020, a Bloomberg report stated. Meanwhile, Russia’s war on Ukraine has fuelled inflation and left millions hungry while surging prices along with slowing economic growth are also increasing indebtedness in the region.
The road to COP27: Making Africa's case in the global climate debate - World (ReliefWeb)
The final 2022 Ibrahim Forum Report, '*The Road to COP27: **Making Africa's Case in the Global Climate Debate', *outlines key facts and figures and 15 recommendations for how policymakers, climate leaders and African citizens can articulate Africa's case in the global climate debate.
Commenting on the final 15 recommendations, Mo Ibrahim, Founder and Chair of the Mo Ibrahim Foundation, said: "It is clear that the current climate agenda is failing Africa. When over 600 million in Africa still lack access to electricity, equivalent to twice the total US population, we need to pause and think very hard."
The report concludes with a set of recommendations issued from the Ibrahim Governance Forum debates to inform COP27 preparatory works and decisions, as well as any other global climate-related debates on the way to COP27 and beyond. By taking these recommendations on board, policymakers can ensure that going forward climate commitments take into account the continent's specific context, including the Africa's economic development path, and acknowledge the important role the continent can play globally.
SMEs: British firm unveils $25m Africa-focused trade access programme (New Telegraph Newspaper)
The British International Investment (BII) and INOKS Capital announced first-of-its-kind Africa-focused Trade Access Programme (TAP) to help increase needed liquidity to SMEs and target trade intermediaries in Africa. TAP launched with $25 million capital from the BII.
Africa Business Communities reports that in addition to fostering trade, job creation, local income, and positive impact generation on climate change, TAP will boost economic inclusion by specifically seeking to improve access to finance for women by targeting investments that qualify for the 2X Challenge.
The platform will also support women-owned and led SMEs while also backing climate positive trade, which will help boost productivity across local and vital value chains, increase food security and accelerate sustainable and inclusive economic growth.
Adopting Kiswahili as Africa's official language will unite, strengthen continent – Tanzanian Envoy (Nigerian Observer)
Abuja – Dr Benson Bana, Tanzanian High Commissioner to Nigeria on Tuesday, said that the adoption of Kiswahili as Africa’s official language by the African Union (AU) will help unite, strengthen the continent and bridge diversities.
Bana said that the adoption of a working language among African countries will foster the integration of the AU agenda and the realisation of the African Continental Free Trade Agreement (AfCFTA).
Global economy news
US Has Cost the World More Than $1.9 Trillion in Climate Damages Since 1990, Study Finds (EcoWatch)
Climate activists have long argued that countries that have contributed the most to the climate crisis owe something to countries that have released relatively few emissions yet still suffer the effects of rising temperatures.
Now, a first-of-its kind study from Dartmouth College backs this argument with hard data. The study, published in Climatic Change, calculates for the first time the financial damages that emissions released by certain nations have caused for others.
When it comes to responsibility for climate damages, the U.S. leads, having cost other nations more than $1.9 trillion in economic losses related to the climate crisis, The Guardian reported. That’s 16.5 percent of the total economic losses calculated by the study.
Russia Calls on BRICS Nations To Adopt New Payment Methods (teleSUR English)
Russia's Deputy Chairman of the Security Council, Dmitry Medvedev, called on BRICS to turn to new payment methods as Russia looks to overcome global dollarization and cope with the euro's loss of value.
He also said that "in the future, it is also possible to establish a new reserve currency for the BRICS countries. The US dollar, euro, and pound sterling are not enough for the modern world."
As virus spreads ‘freely’ COVID-19 ‘nowhere near over’: Tedros (UN News)
Rising COVID-19 cases are not only putting further pressure on already stretched health systems and workers but also triggering an “increasing trend of deaths”, World Health Organization (WHO) chief Tedros Adhanom Ghebreyesus told journalists at the regular weekly press briefing on Tuesday.
“The virus is running freely, and countries are not effectively managing the disease burden based on their capacity, in terms of both hospitalization for acute cases and the expanding number of people with post COVID-19 condition, often referred to as long-COVID,” he said.
He highlighted a disconnect in COVID-19 risk perception between scientific communities, political leaders and the general public, describing it as “a dual challenge of communicating risk and building community trust in health tools and public health social measures like masking, distancing and ventilation”.
Market values are destroying nature: UN report (FRANCE 24)
A major UN report warned Monday that a global economy focused on short-term profit is wrecking the planet and called for a drastically different approach as to how we value nature.
Without this shift, universally accepted goals of sustainable development and greater equity will remain out-of-reach, the science advisory panel for biodiversity, known as IPBES, found.
"The way we understand economic growth is at the core of the biodiversity crisis," Unai Pascual, an ecological economist at the University of Bern and co-chair of a 139-nation meeting in Bonn that approved the report, told AFP.
Commodity swings could pose 'outsize' hit to economy, says G20 watchdog (Reuters)
The G20's financial watchdog said on Wednesday that commodity markets should be closely monitored, since energy and metal prices swings like those triggered by Russia's invasion of Ukraine potentially pose an "outsize" hit to the global economy.
"The centrality of key energy, metals and food commodities to the functioning of the global economy means that any disruptions to the financing of producers or traders in these markets could have an outsized impact," FSB Chair Klaas Knot said in a statement before a meeting with G20 finance ministers and central bankers in Indonesia.
US, Japan vow joint efforts on Ukraine, trade, food crisis (Devdiscourse)
U.S. Treasury Secretary Janet Yellen and Japan's finance minister agreed Tuesday to cooperate in dealing with challenges from the war in Ukraine and promoting free trade, sustainable energy, and food security. Yellen was visiting Tokyo on Tuesday for talks ahead of a meeting of the Group of 20's financial leaders on the Indonesian island of Bali later in the week. Before beginning her meeting with Finance Minister Shunichi Suzuki, she stressed the importance of effective sanctions against Russia for its invasion of Ukraine and said she hoped to gain the support of Japan and other nations in seeking a price cap on Russian oil that would limit funding going to Moscow's military.
A joint statement issued Tuesday after the talks pledged support for Ukraine in coping with its economic challenges. It also said both sides had welcomed efforts to pursue price caps "where appropriate." A price cap would be aimed at curbing the war's impact on gas and energy prices.
G20 regulator to present first global crypto rules in October (UPI News)
The Financial Stability Board, which includes central bankers and treasury officials from G20 countries, is working on bringing global cryptocurrency regulations to the industry by October.
Such regulations have become a necessity due to the recent collapse of the cryptocurrency market, which led to the loss of billions of dollars.
Great Power Conflict Fuels BRICS Expansion Push (The Diplomat)
Soon after Chinese President Xi Jinping’s emphasized the acceleration of the BRICS expansion process at the 14th BRICS Leaders’ Meeting in Beijing in late June, Iran and Argentina announced they had submitted their formal applications to join the group. Meanwhile, the foreign ministers of Kazakhstan, Saudi Arabia, Argentina, Egypt, Indonesia, Nigeria, Senegal, the United Arab Emirates, Thailand, and other guest countries attended the BRICS Foreign Ministers’ Meeting for the first time in May. All these positive actions are the clear indications that the expansion of BRICS is accelerating.
In the new context of the ongoing conflict between Russia and Ukraine and the intensifying Sino-U.S. competition, the confrontation between the East and the West has become increasingly prominent. Both sides, therefore, want to expand the network of friends and partners, thus consolidating their camps. As emerging economies and great powers in the region, the BRICS countries have a strong motivation to absorb other “node” countries with key strategic locations and booming economies to join the camp. The more intense the East-West confrontation, the stronger the impetus for the expansion of BRICS.
Experts call for defining non-personal data before making laws on it (Economic Times)
The Joint Committee of Parliament (JCP)’s recommendations on non-personal data (NPD) and anonymised personal data in last year’s draft Data Protection Bill will not work till NPD is defined clearly, cybersecurity and policy experts said on Tuesday. Most experts who participated in a panel discussion by not-for-profit Consumer Unity & Trust Society (CUTS) International said that regulation of NPD when the definition of the term itself was still vague would be premature.
They said proper guardrails must be put in place before access to any NPD could be shared.
G20 host Indonesia hopes for progress in finance chief talks despite war friction (Reuters.com)
G20 finance leaders will meet in Bali this week for talks that are due to include issues like global food security and soaring inflation, as host Indonesia tries to ensure frictions over the war in Ukraine do not blow discussions off course.
Russia's invasion of Ukraine overshadowed a meeting of foreign ministers from the Group of 20 major economies last week, as Russia's top diplomat walked out of a meeting and accused the West of "frenzied criticism".
China's foreign trade with other BRICS countries jumps 14.1% yoy in H1 (Global Times)
In the first half of 2022, China's foreign trade with other BRICS countries amounted to 1.64 trillion yuan ($243.8 billion), up 14.1 percent year-on-year, 4.7 percentage points higher than the overall growth rate of the country's foreign trade, indicating the closer trade ties among BRICS countries, data by the General Administration of Customs of China (GAC) on Wednesday showed.
GAC Spokesperson Li Kuiwen said at a press briefing on Wednesday that since the BRICS leaders met in 2009, China's trade with other BRICS countries has become increasingly closer, with the value of imports and exports growing from 960.21 billion yuan in 2009 to 3.17 trillion yuan in 2021, with an average annual growth rate of 10.5 percent.
Our Oceans Are Sick: The Solution Is More Money and More Protection, Says WWF (Impakter)
“WWF supports states to deliver on their commitments under SDG 14 in a variety of ways, including our support for the designation of new marine protected areas, our efforts to curb harmful fisheries subsidies through the World Trade Organization, and our global campaign for a legally binding treaty to address plastic pollution. We also call on states to finalize an ambitious new High Seas treaty to conserve biodiversity beyond national jurisdiction.
As WWF Director-General Marco Lambertini pointed out, we managed to do “tremendous damage” to our oceans that can only be solved by “eliminating pollutiotn and overfishing and immediately start[ing] to responsibly manage and protect all marine life around the world.”
Meanwhile WWF Oceans Practice Lead Pepe Clarke reminded us that the Ocean is a “powerful economic engine,” highlighting that “[c]ompanies and investors risk trillions of dollars due to declining ocean health and climate change if business as usual continues.”
FAO Director: Immediate Efforts Needed to Reduce Global Threats to Agrifood Systems (FoodSafetyTech)
The challenges undermining global food security call for a complex approach embracing investment, policy reforms and better use of resources, Qu Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO) told a key meeting of the G20 on July 10.
“Recent global events, from the COVID-19 pandemic to the climate crisis, multiple conflicts around the world and the war in Ukraine, have all heavily affected agrifood systems in multiple ways,” Qu told the G20 Sherpa meeting of senior government representatives.
The war in Ukraine has added to an already challenging situation and could lead to an increase of 13 million more chronically undernourished people this year, and 17 million more in 2023, according to FAO estimates.
The challenges of supply chain regulation – GIS Reports (Geopolitical Intelligence Services AG)
The increasing complexity of global supply chains has raised concerns that some companies, taking advantage of opaque interactions with their suppliers, are indirectly abusing human rights or harming the environment. In the area of corporate governance and “soft law,” attempts have already been made to introduce more due diligence into firms’ decision-making. But recent “hard law” initiatives have gone further, especially in European countries and at the level of the European Union. Such efforts, however worthy of their goals, face significant challenges.
European efforts to police global supply chains are likely to be limited in their effectiveness while jeopardizing economic development.
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Local news
New EU food regulations could see many South African citrus consignments destroyed (Engineering News)
New European Union (EU) regulations, which apply from July 14, require that imports of citrus fruit must undergo specified mandatory cold treatment processes and precooling steps for specific periods, up to 25 days of cold treatment, before importation, says Citrus Growers’ Association of South Africa (CGA) market access and EU matters special envoy Deon Joubert. If enforced this month, these new regulations could result in millions of cartons of citrus currently headed to the EU being destroyed, he adds. In June, the EU Standing Committee on Plant, Animal, Food and Feed published drastic new regulations requiring the cold treatment of oranges heading to the region as a means to address False Coddling Moth (FCM) interceptions from Southern African orange exports. These regulations make extensive changes to the current applicable phytosanitary requirements for citrus coming from South Africa, says Joubert.
A More Competitive Private Sector Could Boost Growth and Jobs in Namibia – World Bank Group Report (IFC)
Namibia can transform its economy, create jobs, reduce inequality, and recover faster from the impact of COVID-19 by deepening private sector reforms and increasing private sector participation in its renewable energy, climate-smart agribusiness, housing, and other key sectors, according to a report published today by IFC and the World Bank.
The report, the Namibia Country Private Sector Diagnostic (CPSD), highlights opportunities for Namibia to attract investment and achieve sustainable private sector-driven growth. The report suggests policy reforms to encourage competition and public private partnerships (PPPs), especially in the energy and water sectors.
Namibian beef enters Ghana’s market (Graphic Online)
The Namibia High Commissioner to Ghana, Selma Ashipala-Musavyi, has given an assurance of deepened trade relations between Ghanaian and Namibian businesses. The increased relations, she explained, would enhance the activities of the businesses and capture new foreign direct investment.
Namibia is renowned for its export of beef and related products, while Ghana is a major meat importer. With the high quality of breed, it is not surprising that Namibia in February, 2020, became the first African country eligible to export meat to the United States of America.
Kenya wants share of maize imports from region raised (Business Daily)
Kenya is seeking to limit Zambia, Tanzania and Uganda from exporting maize to other countries at its expense in fresh efforts to curb the surge in maize flour prices, ease inflation and the squeeze on household budgets. Agriculture Cabinet Secretary Peter Munya says the country has opened talks with the three countries to guarantee Kenya a share of the maize export to plug the shortfall in supplies. Crop failure due to poor weather and a shift in the movement of Uganda maize to South Sudan have seen flour prices rocket to a record high of Sh210 for a two-kilo packet, up from Sh120 at the start of the year.
Rwanda SMEs Set to Access Egyptian Market (COMESA)
Rwanda’s Small and Medium Sized Enterprises (SMEs) engaged in horticulture and agro-processing are set to access the Egyptian market following a successful trade mission facilitated by the COMESA Regional Enterprise Competitiveness and Access to Markets Programme (RECAMP). Fourteen SMEs from the Private Sector Federation accompanied by two officials from the Ministry of Trade and Industry of Rwanda, participated in the four-day trade mission to Egypt 16 – 19 May 2022 and explored trade and investment opportunities.
While in Egypt, the Rwanda delegation participated in trade and investment conference which brought together government officials and 300 businesses under the Egyptian Federation of Industries with discussions focusing on trade and investment opportunities. Most of the businesses were in textile, construction, agro-processing and the manufacturing sector.
China ready with avocado exports audit, says agency (Business Daily)
The Chinese crops agency has concluded the audit of Kenya’s avocado and pack houses, raising hopes of Kenyan farmers and plantations starting exports to the lucrative Asian market soon. The Kenya Plant Health Inspectorate Service (Kephis) general manager Phytosanitary services Isaac Macharia says the audit was completed mid-last month and they are awaiting a response from the authorities in Beijing. Kephis had completed an inspection of the firms that had applied for licences to export the fruits to China in May, however, the process could not begin as the Chinese introduced another requirement, hence the audit. “We are now waiting for the findings after the Chinese finished the process of auditing the farms and the pack house last month,” said Dr Macharia.
Kenya-Uganda urged to fight growing illicit trade (The Star, Kenya)
The Kenyan government has been urged to enhance surveillance and seal-off growing illicit trade between the country and neighbouring Uganda, its biggest trading partner in the region. This follows an explosive documentary that lifts the lid on Kenya’s rampant trade in counterfeit and smuggled goods, with cigarettes topping the list. Stop Crime Kenya (StoCK), which has a secretariat at the Consumers Federation of Kenya (Cofek), has now called for urgent response from lawmakers. Investigation by African Uncensored reveals the deep-rooted involvement of law enforcement officers in the smuggling of illicit goods, ranging from cigarettes to sugar, which robs Kenyans of billions of shillings every year.
StoCK chairman Stephen Mutoro said: “This chilling expose by African Uncensored illustrates how deeply entrenched the menace of illicit trade has become as consumers struggle to cope with the soaring cost of living.”
IFC and CRDB PLC to Boost Access to Finance for Small Businesses in Tanzania and Burundi (IFC)
A new investment between IFC and CRDB PLC announced today will increase access to finance for micro, small and medium-sized enterprises in Tanzania and Burundi, helping strengthen both countries’ recovery from the economic effects of the COVID-19 pandemic.
Under the partnership, IFC is providing a $100 million loan to CRDB Bank Tanzania, half of which will be in local currency, and a $5 million loan to CRDB Bank Burundi to support lending to smaller businesses in both countries, especially to women-owned businesses.
Small businesses are critical to the economies in Tanzania and Burundi. In Tanzania, an estimated 3.2 million micro, small and medium-sized businesses contribute 27 percent of the country’s GDP and employ more than 5 million people. However, roughly 81 percent of these businesses lack access to finance. Businesses in Burundi also struggle to access financing.
Call for incentives as Rwanda and Netherlands shift from aid to trade (The New Times)
This year marks the end of Netherlands’ financial aid to Rwanda as the two countries move to boost trade to support Rwanda realise its ambition of becoming self-reliant. Both countries are ready to enter a new chapter as emphasised by the Netherlands Ministry of Foreign Affairs’ acting head of the department for Sub-Saharan Africa in, Martine Van Hoogstraten, while speaking during the 28th Liberation event at The Hague recently.
Rwanda’s business community is already tapping into the Netherlands market, however, there is hope for special incentives that traders and economists say would encourage exporters to increase their exports.
S.Sudan - Uganda forum will boost trade (Monitor)
The Republic of South Sudan is an independent country with a government though existing in an International system. The Uganda Embassy has no military forces in South Sudan. But we work with the host government and its security services to ensure safety and security for Ugandans in South Sudan. Generally, they are safe despite the isolated incidents. Ugandans are the biggest diaspora community in South Sudan involved in formal and informal business. Ugandans are also the most daring people in the region. They cannot be easily intimidated. You hear them say that dying of poverty in Uganda, they rather die from a bullet in South Sudan. They have promoted the spirit of regional cooperation and regional integration by promoting trade. We shall protect them and their businesses. After that bitter war, the government is doing its best to restore systems in all sectors. Most systems broke down because there was a total breakdown of law and order.
Uganda’s current exports to South Sudan are between $350m (Shs1.3 trillion) and $400m (Shs1.5 trillon). Before the war in 2013, it was approaching $1b (Shs3.7trillion). South Sudan exports to Uganda are valued at $86b (about Shs323b).One way of securing Uganda’s interest is through government to government engagements and private sector to private sector both in Uganda and South Sudan. We believe in that joint strategy of working together, we shall secure our business interests like we have done on the launch of a joint business forum. In Mid July during the forum, we shall have a symposium and exhibition to showcase what we have and what the South Sudanese have and use the opportunity to discuss challenges and opportunities.
Congo plans border post expansion as mining trucks endure up to 60 km queues (Engineering News)
Democratic Republic of Congo plans to expand its main border post with Zambia, a source close to its government said, to ease truck queues of up to 60 km that copper miners have faced this year due to increased production and inadequate infrastructure. The backlog of trucks at Kasumbalesa, a border town and the main exit point for metals exports from Congo, is an example of supply chain disruption that will make it harder to meet future demand for copper, essential for electric vehicles.
AfDB to boost non-oil export with agro testing centre in Nigeria (The Nation Newspaper)
A world-class agro testing centre is to be established in Sagamu, Ogun State by the African Development Bank (AfDB), it was learnt yesterday. The centre, when built, will stimulate the standardisation of farm produce export from Africa, sources privy to the development confirmed. They said the Sagamu site is the only facility approved in Africa. The site was conceived as part of ancillary infrastructure to drive viability for the about-to-be-completed Ogun International Agro Cargo Airport in Ilisan Remo, Ogun State.
Ogun State Commissioner for Works & Infrastructure, Ade Akinsanya, who confirmed the development, said the project is put together as part of international collaboration for driving air transport infrastructure in Africa. Akinsanya said the facility would address challenges associated with processing agro-allied produce for export.
IMF: the bitter pill needed to heal the economy (The Business & Financial Times)
The decision by Ghana’s economic managers to request assistance from the International Monetary Fund (IMF) started the 2022 mid-year off with a jolt. In a letter signed by the Information Minister, the President authorized the Finance Minister to commence formal engagements with the IMF, inviting the Fund to support an economic programme put together by Ghana. In a tweet, the IMF’s Country Director stated that the Fund was ready to help Ghana restore macroeconomic stability, safeguard debt sustainability, and promote inclusive and sustainable growth.
Many Ghanaians were shocked by this development because the current economic managers had repeatedly assured them that they would not request an IMF bailout despite the country’s growing economic instability and prevailing hardships.
With our debt to GDP ratio exceeding 78%, current inflation rate reaching almost 30%, our widening budget deficit, policy rate of 19%, making cost of borrowings high, it appears that Ghana has no alternative than to run to the IMF to seek refuge.
MSMEs, Backbone Of Nigeria’s Economy – UNIDO (Economic Confidential)
The United Nations Industrial Development Organisation (UNIDO) has said that Micro Small and Medium Enterprises account for 96 per cent of all business activities in Nigeria. Mr Jean Bakole, UNIDO Regional Director and Representative to ECOWAS said this at the dissemination event on ‘Strengthening the Capacities of MSMEs to Produce High-quality Personal Protective Equipment (PPEs) and Healthcare-related Products’ which held in Abuja yesterday. According to him, the MSME sector currently contributes 50 per cent of the GDP and has provided over 48 percent of all employment opportunities in the country.
Local products without certification to lose out on AfCFTA – GSA (The Business & Financial Times)
Producers of locally manufactured products risk being outperformed with the start of the African Continental Free Trade Area (AfCFTA) if they fail to ensure their products meet the standard certification requirements, Principal Scientist at the Product Certification Department of the Ghana Standards Authority (GSA), Emmanuel Adjei, has said.
This is against the background that about 50 percent of local manufacturers delay in complying with the timeline for renewal of certification licenses issued for products, by GSA, while some do not renew at all. However, every product ready for export need such certification.
GEPA to boost the capacity of exporters (News Ghana)
The Ghana Export Promotion Authority says it is committed to enhancing the capacity of Ghanaian exporters in efforts to boost the country’s non-traditional exports in line with the National Export Development Strategy. The strategy projects a revenue target of $25.3 billion by the year 2029 with a focus on three strategic pillars aimed at breaking the cycle of being an economy providing mainly raw materials and minimal volumes of manufactured goods and services.
“For exports to thrive, excel and succeed, it is important to ensure that they are well resourced in capacity to deliver as expected. In the long term, it is expected that Ghana’s educational system will be re-engineered to reflect the human resource needs of export-oriented industrialisation,” said Chief Executive Officer (CEO) of GEPA, Dr Afua Asabea Asare.
Dangote Cement Commits To Product Availability (Leadership)
Sub-Saharan Africa is home to over 1.1 billion people. The United Nations estimates that by 2050, the region will have a population of more than 2.1 billion. Two-thirds of this growth will be absorbed by urban areas, which will be home to an additional 950 million people. The World Bank describes Africa as the fastest growing and youngest region globally. As the population continues to expand, Africa urgently needs infrastructure, housing and commercial buildings. This creates a tremendous opportunity for Dangote Cement.
Dangote Cement Plc said: “as a producer of basic building material in Africa, we see a strong demand stemming from the housing needs in all our markets. Urbanisation will necessitate the demand for more schools, supermarkets, recreational centres, and more corporate organisations.
“Cement remains the most used material for building any type of house, either personal or commercial. As a result, there is no doubt that cement will continue to be a sought-after commodity across all our markets. Dangote Cement is prepared to ensure cement is available and the market is adequately satisfied through expansion and our “export-to-import” strategy. We will continue to focus on quality and delivery of superior products to our markets.”
African Development Bank Group chief in Zimbabwe to get debt clearance plan underway (AfDB)
African Development Bank Group President Dr. Akinwumi Adesina arrived in Zimbabwe today at the start of a two-day official visit to the country. Adesina accepted a request in February by the Zimbabwean government to serve as the country’s arrears clearance and debt resolution champion among international financial institutions and bilateral creditors.
The Bank Group President will meet with President Emmerson Dambudzo Mnangagwa and other government officials, including Finance and Economic Development Minister Mthuli Ncube, who is also Zimbabwe’s Governor on the Bank Group’s Board of Governors. Discussions will focus on potential areas of technical assistance that the African Development Bank will provide to the Zimbabwean government. President Mnangagwa, elected in 2018, has introduced several economic reforms to stimulate economic recovery and stability.
Zimbabwe is the only regional member country of the African Development Bank currently under sanctions from the Bank and other multilateral financial institutions because of debt arrears amounting to over $2.6 billion.
The African Development Bank has run the $145.8 million Zimbabwe Multi-Donor Trust Fund (‘the ZimFund’) from 2010 through June this year. The ZimFund has been an important source of financial support for the country’s energy, water and sanitation infrastructure.
Mali’s cotton trucks race to the border after sanctions ease (Reuters)
After months stuck at home unable to provide for his family, Malian truck driver Ibrahima Sangare is delighted to be back on the road after the lifting of regional economic sanctions let him resume long-distance drives to ports in Ivory Coast.
Sangare was waiting with a dozen fellow cotton truckers to be processed by customs at a dusty border crossing last Wednesday - among the first to cross into Ivory Coast there since the Economic Community of West African States (ECOWAS) announced on July 3 that borders with landlocked Mali could reopen.
The border closures were among the painful sanctions imposed by the bloc in January after Mali’s military-led interim government said it planned to extend its rule and delay democratic elections after a coup in 2020.
Ethiopia’s Annual Coffee Export Revenue Hits Record $1.4bln (Ethiopian Monitor)
Ethiopia has obtained a record-hit $1.4 billion dollars from Coffee export in the just concluded 2021/22 fiscal year, according to the Ministry of Agriculture. The revenue, the highest the country obtained in its history, has also surpassed the target for the budget year officials set at a little over a billion dollars. The previous recording of coffee export earnings was registered last year when the country secured $906 Million after exporting 248, 000 tonnes of coffee. “In the last 12 months, Ethiopia exported 300,000 tons of coffee and generated 1.4 billion USD,” revealed Agriculture Minister Oumer Hussien, on his Twitter on Sunday.
Coffee represents a vital part of Ethiopia’s economy, supporting the livelihoods of more than a quarter of the population and generating up to 30% of the country’s foreign exchange earnings.
Mozambique Economic Update: Getting Agricultural Support Right (World Bank)
Despite multiple consecutive shocks, including the COVID-19 pandemic that caused the first recession in nearly three decades, the Mozambican economy is recovering, but with considerable uncertainty. The country’s gross domestic product (GDP) growth reached 2.2% in 2021, as favorable weather conditions supported agricultural growth, and the gradual lifting of COVID-19 containment measures boosted private consumption, fueling the recovery of services.
Despite the gradual rise in domestic and global demand, growth in the extractive and manufacturing sectors remained moderate. Several constraints have dampened global economic performance, including the suspension of multibillion -dollar Liquefied Natural Gas (LNG) projects due to the escalation of the insurgency in the north of the country, tighter monetary policy, and new waves of COVID-19 infections.
Morocco — a top fertiliser producer — could hold a key to the world’s food supply (Down to Earth Magazine)
Morocco plans to produce an additional 8.2 million tonnes of phosphorus fertiliser by 2026
Morocco has a large fertiliser industry with huge production capacity and international reach. It is one of the world’s top four fertiliser exporters following Russia, China and Canada. Fertilisers tend to divide into three main categories; nitrogen fertilisers, phosphorus fertilisers, potassium fertilisers. In 2020 the fertiliser market size was about $190 billion. Morocco has distinct advantage in the production of phosphorus fertilisers. It possesses over 70 per cent of the world’s phosphate rock reserves, from which the phosphorus used in fertilisers is derived. And this makes Morocco a gatekeeper of global food supply chains because all food crops require the element phosphorus to grow. Indeed, so does all plant life. Unlike other finite resources, such as fossil fuels, there is no alternative to phosphorus.
African trade and integration news
Making the most of the African Continental Free Trade Area (World Bank)
The African Continental Free Trade Area (AfCFTA) could deliver far greater benefits in terms of jobs, growth, and poverty reduction than previously estimated – making it a potential game changer for Africa’s economic development if its ambitious goals are fully realized. The deal creates a continent-wide market embracing 55 countries with 1.3 billion people and a combined GDP of US$3.4 trillion. Its first phase, which took effect in January 2021, would gradually eliminate tariffs on 90 percent of goods and reduce barriers to trade in services. That could raise income by 7 percent, or $450 billion, by 2035, reducing the number of people living in extreme poverty by 40 million, to 277 million, according to a World Bank report published in 2020.
A new World Bank study, released in collaboration with the AfCFTA Secretariat, accounts for the additional benefits that would accrue from an increase in foreign direct investment (FDI) – both from within and outside of Africa – that the deal is expected to generate.
The report, Making the Most of the African Continental Free Trade Area: Leveraging Trade and Foreign Direct Investment to Boost Growth and Poverty Reduction, is intended to be a guide for policy makers charged with carrying out the agreement. To maximize its benefits, the first step will be to conclude planned negotiations on investment, e-commerce, and intellectual property. The report also recommends building grass-roots support for and understanding of the agreement, simplifying red tape to encourage investment, and pairing the deal with a “complementary agenda” that includes training and advice for national trade ministries charged with supervising compliance and administration.
Southern African Customs Union is in need of reform (BusinessLIVE)
The standard deviation of aggregate Southern African Customs Union (Sacu) receipts for non-SA member BLNS states (Botswana, Lesotho, Namibia and Eswatini), expressed as a share of mean distributions between 2020 and 2012, was 16%. For context, the excess returns to US equities have a historical variation of 15%.That degree of variability might be acceptable for hedge fund returns. It is not acceptable for the precarious public finances of the small countries SA partners with in the customs union, for which Sacu receipts can constitute as much 50% of annual state revenue. This volatility is compounded by the fact that SA makes Sacu distributions to BLNS states based on deeply flawed state forecasts that often require material revisions in subsequent years, accentuating for the unpredictability of BLNS public finances.
The Democratic Republic of the Congo finally becomes the 7th EAC Partner State (EAC)
The Democratic Republic of the Congo (DRC) has finally become a member of the East African Community after depositing the instrument of ratification with the EAC Secretary General at the bloc’s headquarters in Arusha, Tanzania. Handing over the instrument of ratification to the Secretary General, DRC’s Vice Prime Minister and Minister of Foreign Affairs, Hon. Christophe Lutundula Apala Pen’ Apala, said that the entry of his country into the EAC was an economic, cultural, geographical and historical obligation.
The Vice Prime Minister described the EAC as the most integrated bloc on the entire African continent, adding that the Summit of Heads of State also had the political will to achieve the objectives as outlined in the Treaty. Hon. Apala said that the entry of his country into the EAC had strengthened the bloc’s economic, political, socio-cultural, financial and military muscle.
EAC member states split over African trade pact regulations (Fibre2Fashion)
Member states of the East African Community (EAC) are reportedly lacking a consensus over preferential Rules of Origin and tariffs on textile and apparel and goods produced in special economic zones (SEZs) among other products. Rising protectionism could expose the region to unfair trade practices under the African trade pact AfCFTA.
The requirement for local content is 40 per cent now, and is considered too steep for sustainable production, according to a report in a Kenyan newspaper.
Why EAC Competition Bill was amended (The New Times)
The East African Legislative Assembly recently passed an amended EAC Competition Bill, 2021, after introducing a modification to limit circumstances under which a merger that leads to substantial lessening of competition in the market may be approved. The draft legislation was initially a revision of the 2006 Act meant to streamline the provisions on mergers with the international practice on competition; to confer legal personality on the East African Community Competition Authority (EACCA); to empower the latter to impose and collect financial penalties; and provide for any other related matters.
“The amendment [in the Bill] was done to provide for regulations to specify and limit the circumstances under which the Authority may approve a merger that leads to the substantial lessening of competition in the relevant market,” MP Christopher Nduwayo, Chairperson of the House’s standing committee on Communication, Trade and Investment (CTI) which introduced the changes, told Doing Business.
SADC developing measures to ease trade facilitation in the Region (SADC)
The Southern African Development Community (SADC) is developing and implementing customs instruments to tackle challenges that contribute to higher transaction costs in order to ease trade among countries in the region. The customs instruments include logistics, simplification and harmonisation of documentation associated with cross-border trade, improving transparency in operations of regulatory agencies, harmonisation of standards and technical regulations, harmonisation of Sanitary and Phytosanitary measures (SPS), monitoring and resolution of Non Tarif Barriers (NTBs), as well as improving the business environment in which transactions take place.
SADC is also conducting Time Release Studies (TRSs) along its corridors to assess bottlenecks and efficiency in the clearance of goods crossing the border posts. TRS is a method endorsed by the World Customs Organisation (WCO) for assessing a country’s trade facilitation performance. It does so by measuring the average time from arrival of goods at the border until permission is given for the goods to enter home consumption.
SADC registers progress on TIFI programmes (SADC)
The Southern African Development Community (SADC) is making steady progress on its programmes to facilitate industrial development, finance and investment and trade in goods and service among Member States. This emerged out of the Trade, Industry, Finance and Investment (TIFI) Thematic Group hybrid meeting held on 16 June 2022 to discuss progress on the implementation of its programmes to deepen regional economic integration.
Among the deliverables attained are the development of the SADC Simplified Trade Regime (STR) for small cross border traders. The STR framework aims to reduce barriers to trade by simplifying the customs procedures and processes. Its implementation will support small traders by lowering transaction costs associated with formal trade.
Another milestone achieved is the operationalisation of the SADC e-Certificate of Origin (e-CoO) framework. The pilot phase of the programme is being implemented in Botswana, Kingdom of Eswatini, Malawi, Mauritius, Mozambique, Namibia, Lesotho, South Africa, United Republic of Tanzania and Zambia. The e-CoO framework aims at enabling traders to apply for the certificate of origin electronically. This will reduce time for its issuance and transmission to the importing country. The regional e-CoO will also enhance integrity of customs and trade operations as a result of less interference with human beings.
Guidelines for implementing Commodity Based Trade during foot and mouth disease outbreaks (SADC)
In most of Southern Africa the vast majority of cattle are located in areas not free of foot and mouth disease (FMD), leaving owners of these cattle with limited access to regional and international beef markets. This situation constrains investment in cattle production, thereby limiting rural development and helping to entrench rural poverty. For decades, this situation has simply been accepted because the types of FMD viruses prevalent in the region are maintained by wildlife and are therefore essentially impossible to eliminate. Moreover, until recently, international trade rules and conventions were founded on the need for the locality of beef production to be free of FMD. Fortunately, this situation is changing and options include, among others, management of risk of FMD along individual value chains to enable assurance that the final products are free of FMD virus and therefore can be traded with negligible risk of transmission of infection, irrespective of the FMD status of the locality of production (i.e. commodity-based trade (CBT).
The Guidelines on Commodity-Based Trade Approaches for Managing Foot and Mouth Disease Risk in Beef in the SADC Region aims to inform beef producing enterprises of the nature of developments and how a value chain approach could be exploited to broaden market access.
Coming Soon: COMESA Financial Stability Report (COMESA)
The COMESA Monetary Institute (CMI) has commenced preparatory work towards the production of a Financial Stability Report (FSR) for the COMESA region. The first working group of experts meeting took place in Nairobi, Kenya on 22 – 24 June 2022 with participants from the Central Banks of DR Congo, Egypt, Mauritius, Sudan and Zambia. The FSR will contain reviews of the developments in the financial sector in the COMESA region to identify key risks, vulnerabilities and challenges facing the financial systems of member countries and provide policy recommendations to mitigate such risks and strengthen stability.
ECOWAS Wants SADC to Invest in Private Sector in Energy Conservation (Front Page Africa)
Earlier on Monday, Bomi County Senator Edwin Melvin Snowe, Representing Dr. Sidie Mohamed Tunis, Speaker of the ECOWAS Parliament addressed the official opening of the Southern African Development Community (SADC) Parliamentary Forum 51st Plenary Assembly stressing the need for private sector energy conservation. Considering the theme of the forum, “Towards Energy Efficiency, Sustainability, and Self Sufficiency in the SADC Region”, he encouraged the SADC Parliament to place the greater issues of energy efficiency, building capability in energy management, encouraging research and development in energy technologies and soliciting the public interest on the role of the private sector in energy conservation at the core of their deliberations. In his remarks, he expressed the ECOWAS Parliament’s preparedness to share experiences on public-private partnership in the energy sector, as well as promote ideas that would address this very important issue across the regions.
Africa to redouble efforts to deepen African Economic Integration; Africa Integration Day 2022 (African Union)
The operationalization of the African Continental Free Trade Area (AfCFTA), one of the flagship projects of Agenda 2063, represents an opportunity in Africa’s journey towards the operationalization of an integrated market, that will eventually culminate in the formation of an African Economic Community
The African Union Commission’s Department of Economic Development, Trade, Tourism, Industry, and Minerals and the Member States, Regional Economic Communities (RECs), Pan-African Private Sector, Civil Society, Academia, Research Institutions, Women and Youths celebrated the 3rd edition of the Africa Integration Day under the theme “Deepening African Economic Integration in the Era of De-Globalization” on 7th July 2022, Lusaka, Zambia.
The overall objective of the commemoration of the 2022 African Integration Day and Forum was for African governments, private sector, civil society, RECs and AU partners to deliberate on how to utilize regional and continental integration processes and initiatives to foster accelerated Africa’s economic integration in its recovery in the post-COVID era.
H.E Amb. Albert Muchanga, Commissioner for Economic Development, Trade, Tourism, Industry and Minerals welcoming participants to the celebration of the third edition of the Africa Integration day, mentioned few of several factors that confront the continent. “The future of Africa in this new global environment lies in deeper economic integration, continent-wide. We are stronger working together; and, more resilient. We are weaker; and more vulnerable working as individual countries,” he said. Amb. Muchanga encouraged African citizens; cross-border traders; schools; colleges; universities; organized labour; and, the media, among several stakeholders to be actively involved in the African economic integration agenda.
Natural Resources Drive Africa’s Trade, and Ports Will Play a Key Role (The Maritime Executive)
There is a general consensus that Africa is the region most endowed with natural resources. Its arable land accounts for almost a quarter of the world’s arable land, giving the continent unrivalled agricultural potential. This abundant land also has the particularity of containing natural resources that are strategic for world industry and for the continent’s economic development: 85% of the world’s platinum, 60% of manganese, 50% of cobalt, etc.
For the past two decades, the region has experienced sustained growth in the exploitation of its natural resources, driven by the increased interest of foreign investors and the willingness of African governments to identify new sources of funding for their development policies. The significant increase in commodity prices, combined with the exponential demand from emerging powers such as China, therefore provide an encouraging context for the emergence of a sustainable African mining industry. New ports infrastructure being built across West Africa, from Gabon to Ghana to Cote d’Ivoire, are accommodating this demand.
However, the sector is still facing numerous challenges to meet expectations. The intensification of mining has led to a redefinition of geographical spaces on the continent.
Keynote Speech by Axel van Trotsenburg, World Bank Managing Director, Operations (World Bank)
The final IDA20 replenishment will provide $93 billion over the next three years to support 74 countries around the world, of which 39 are in Sub-Saharan Africa. On behalf of the World Bank, I wish to convey my deep appreciation to His Excellency Macky Sall, President of the Republic of Senegal and Chairman of the African Union, for his kind invitation and generous hospitality in hosting today’s IDA for Africa Summit.
Why One African Country Opted for Full Disclosure on Debt (World Bank)
For the past three years, the World Bank has been monitoring how transparent IDA countries are in their debt reporting practices through the Debt Reporting Heat Map. Among the 74 IDA countries, one stands out by meeting the “full disclosure” rating for every single one of the nine categories on the debt transparency Heat Map: Burkina Faso. This performance is even more remarkable considering that the country has been classified as fragile and conflict-affected (since late 2020) and has been fiscally squeezed by both the COVID-19 crisis and internal population displacement (almost 2 million since 2020).
Africa’s illicit financial flows now $80bn – CDD (Daily Trust)
The Director of the Centre for Democracy and Development (CDD), Idayat Hassan, has said that the Illicit Financial Flows (IFFs) in Africa has risen to $80 billion. Her comment was part of activities to commemorate the African Union Anti-Corruption Day with the theme: “Strategies and mechanisms for the transparent management of COVID-19 funds”. Hassan, in a statement on Monday, said the African continent suffered an annual loss of over $50bn as of 2015 through IFFs which had risen due to non-practical action on it. She said, “It is pertinent to note that through corruption and mismanagement, some of the COVID-19 funds in Africa may have become a source of illicit financial flows to countries in the North.”
“Corruption and illicit financial flows are twin evils which continue to constrain Africa’s progress and development. Regrettably, the utilisation of COVID-19 funds has also become a major source of Africa’s corruption conundrum.”
Africa Economic Summit Group unveils the Future of Africa Project website to develop the ‘Africa by Africans for All’ idea (The New Dawn Liberia)
The Africa Economic Summit Group has launched the Future of Africa Project website to enable Africans from around the world to jointly design the Africa they want to see. This project initiated by the Africa Economic Summit Group, a United Kingdom based international organisation committed to the growth and competitiveness of the African continent is a two-year long journey to harvest the finest of thoughts by Africans on the future they want for their continent.
According to Dr Brian Reuben, the CEO of Africa Economic Summit Group, ‘the problems in Africa can only be solved by Africans. There is no single African who does not want Africa to succeed. And when we think about it, Africa is blessed not just by abundant natural resources but also by human resources. All around the world Africans are doing mighty things in medicine, technology, sports and just about anything you can think of. This project is our chance to come together and design the future of our Africa as one people.’
The Future of Africa Project is designed to get Africans together to generate the ideas and frameworks required to build the new Africa with opportunity for all. The idea to to develop all aspects of the African economy and deliver a high standard of living for the people.
This report which will be presented to the African Union on the 25th of May 2024 will serve as a guide to individuals and organisations interested in doing business in Africa. The report will also provide policy direction to African Governments on the pathway towards a strong, resilient and competitive Africa. These proposals will also retain the details of the people who participated in the two year long project, including how to contact them. This therefore will offer all the people who participate on the project a chance to work directly with the Africa Economic Summit Group, Governments of African nations, investors interested in Africa, other international and multilateral organisations etc.
Increase investment in instruments for financial crisis management – President Akufo-Addo urges (BusinessGhana)
Addressing the Boma of Africa Festival on the ongoing global economic turmoil last Sunday, he noted that the current international instruments for resolving those crises lacked input from smaller economies. Speaking in his capacity as the African Union (AU) Champion of Financial Institutions, the President expressed concern about how smaller economies, many of them in Africa, often suffered the harshest consequences during global downturns though they contributed the least to the causes of those upheavals.
The Boma of Africa festival is a series of insightful convenings to drive the African integration agenda through a strategic high-level engagement between the continental governance institutions, represented by the AU Commission, and the African private sector, represented by the AU’s strategic partner AfroChampions.
The AU Commission, in partnership with AfroChampions Initiative - a public-private partnership designed to galvanise African resources and institutions to support the emergence and success of the African private sector - hosted the Boma of Africa on the theme: “Taking stock of the Africa Century”. The theme sought to explore the global shifts and continental developments shaping Africa’s quest to become a powerful global force by 2063.
The African Pharmaceutical Technology Foundation: NMRAs must upgrade to match impending boom in Africa’s pharma sector (Businessday)
The last few years since the onset of the COVID-19 pandemic have revealed the vulnerability of Africa’s pharmaceutical sector and the critical need for Africa to strengthen its local manufacturing capacity. With the growing burden of diseases on the continent, Africa must achieve self-reliance to cater for the increasing healthcare demands of its population. Unfortunately, pharmaceutical manufacturing companies in Africa face immense challenges such as poor availability of sustainable financing (including market access), inadequate access to know-how, unreliable supply chains, and inexperienced regulatory authorities. The pharmaceutical industry in Africa is also severely constrained by intellectual property rights protection and patents on technologies, know-how, manufacturing processes, and trade secrets. This limits the negotiation capacity of African pharmaceutical companies to engage within the global pharmaceutical industry and take part in complex global pharmaceutical innovations.
In view of these challenges, the African Development Bank has approved the establishment of a ground-breaking institution, the African Pharmaceutical Technology Foundation (APTF) to strengthen the local capacity for manufacturing medicines, vaccines, and other pharmaceutical products. However, Africa’s capacity to leverage on the opportunities the APTF provides will depend strongly on the committed collaboration of African governments and the capacity of their National Medicines Regulatory Authorities (NMRAs). This is because NMRAs play a leading role in guaranteeing availability of quality-assured medicinal products in their respective countries, ensuring that medicines, including vaccines, medical devices, and other pharmaceutical products meet applicable standards of safety, quality and efficacy.
Can sustainable development help Africa with rising food insecurity? (The Africa Report)
Russia’s invasion of Ukraine has left many African countries no option but to find alternative sources of grain imports. Despite a dip in prices in recent weeks, Ukraine has warned that Russia has been stealing and then selling grain on the black market, mainly to Syria via countries like Turkey. This has left many countries across the continent to fend for themselves against rising inflation that has driven many to famine and farmers strained to produce enough grain. African governments are now focusing on improving agricultural conditions and investing in greater self-sustainability.
We can take lessons from war in Ukraine concerning Africa’s food need (Monitor)
Some of the countries which are reported to face acute food crises due to the war in Ukraine are African. They include Egypt, Sudan, Libya and Somalia. A year ago, it was reported that Africa imported about 54.8 metric tons of wheat. African countries are some of the world’s leading wheat importers in the world. Media reports indicate that Ukraine and Russia export about a third of the world’s wheat and barley. It is therefore no wonder that the war in Ukraine spells immense distress for Africa, from a food supply perspective. Overall, the continent is a net food importer. Previous estimates have put the food import need for Africa at $110billion, by 2025, a mere three years from now. The rest of the world is thus strategizing to benefit from utilizing a growing and lucrative food demand on the continent. This is unfortunate for a number of reasons.
Insight 07: Implications of the Ukraine invasion for Africa (IC Intelligence)
‘There’s a massive knock-on from the Ukraine crisis in Africa’ – Dr Alex Vines, Director, Africa Programme Chatham House:
Russia is increasingly economically isolated through sanctions. How will this impact Africa? The commodity producers will certainly in the short term do better. Oil is over $100 a barrel and that’s very good news for a country like Angola in the short term, and gas becomes much more strategically important with Europe looking to diversify away from Russian gas. We’re seeing plans for a high-level Italian delegation to go to Mozambique. ENI is regarding its gas assets in Mozambique as incredibly strategic. Before the invasion of Ukraine they might have been considering selling them because they were exposed cost-wise with the investments on gas in Egypt. This is a game-changer in the way that Europe in particular is looking at African energy to help in the energy transition. The same will be true for certain minerals that will help in the energy transition to net zero. This is where graphite and cobalt will become much more important – countries like DRC, and northern Mozambique will become more strategic. Suddenly a number of African countries will be more important to Europe. Likewise, although we’re seeing a partial European retreat in the Sahel at the moment, in the longer term the Sahel will remain important and West Africa in particular, because it’s basically the European near abroad. If you look at senior policymakers in Europe, they were saying a lesson from Covid is that extended supply chains to Europe were unsustainable, including farm production. So if you have more enabling business environments in West Africa, they’ll see inward FDI building up industrial capacity and capability because it’s basically Europe’s extended neighbourhood.
Staple Food Prices in Sub Saharan Africa: An Empirical Assessment (IMF)
This paper analyzes the domestic and external drivers of local staple food prices in Sub-Saharan Africa. Using data on domestic market prices of the five most consumed staple foods from 15 countries, this paper finds that external factors drive food price inflation, but domestic factors can mitigate these vulnerabilities. On the external side, our estimations show that Sub-Saharan African countries are highly vulnerable to global food prices, with the pass-through from global to local food prices estimated close to unity for highly imported staples. On the domestic side, staple food price inflation is lower in countries with greater local production and among products with lower consumption shares. Additionally, adverse shocks such as natural disasters and wars bring 1.8 and 4 percent staple food price surges respectively beyond generalized price increases. Economic policy can lower food price inflation, as the strength of monetary policy and fiscal frameworks, the overall economic environment, and transport constraints in geographically challenged areas account for substantial cross-country differences in staple food prices.
Renewable energy may boost Africa’s construction sector in tough 2022 – report (Engineering News)
Turner & Townsend has released its International Construction Market Survey (ICMS) for 2022. The company is an independent professional services entity operating in the global real estate, infrastructure and natural resources sectors. The ICMS is the company’s largest and most in-depth report, drawing from data and experience from 90 global markets. It explores the challenges and opportunities presented by the economic market conditions that affect the construction industry.
Time for a new US engagement with Africa- Tony Elumelu (Nairametrics)
In February, at the sixth European Union-African Union Summit, leaders of the 27 EU nations welcomed 40 African heads of state to Brussels and committed €150 billion in investments targeting health, education, digital innovation, transportation infrastructure, and green energy.
Global economy news
Global trade hits record $7.7 trillion in first quarter of 2022 (UNCTAD)
The value of global trade rose to a record $7.7 trillion in Q1 2022, an increase of about $1 trillion relative to Q1 2021, according to UNCTAD’s Global Trade Update published on 7 July. But the positive trend for international trade may soon come to an end amid tightening policies and geopolitical frictions.
The growth, which represents a rise of about $250 million relative to Q4 2021, is fuelled by rising commodity prices, as trade volumes have increased to a much lower extent. Though expected to remain positive, trade growth has continued to slow during Q2 2022.
According to the report, trade growth rates in Q1 2022 remained strong across all geographic regions, although somewhat lower in the East Asia and Pacific regions. Export growth has been generally stronger in commodity-exporting regions, as commodity prices have increased.
The role of WTO Aid for Trade in actualizing an inclusive circular economy (Trade for Development News)
Unsustainable use of the earth’s resources is a primary driver of the triple threat of pollution, biodiversity loss and climate change. The current linear model of production and consumption is also a significant driver of social injustice, with the majority of resource consumption and wealth accumulation occurring in the Global North, but the highest levels of environmental impact and threats to human health being experienced in the Global South. There is an urgent need to move away from an extractive, polluting, and unjust production–consumption system to one that decouples social and environmental prosperity from unsustainable resource use.
The circular economy offers a life cycle approach to tackling this problem across value chains. Rather than the current linear flow of materials through the global economy, in which they are extracted, processed, manufactured, used, and finally disposed of as waste, a circular economy uses a systemic approach to decouple economic prosperity from material use by maintaining a circular flow of resources through regenerating, retaining, or adding to their value, while contributing to sustainable development. No country can achieve a circular economy on its own. Rather, all are dependent on international trade to secure affordable and reliable access to a wide range of different materials, goods and services.
Circular trade flows have grown strongly in value over the past two decades. For example, the value of trade in second-hand goods, secondary raw materials, and waste for recovery rose by more than 230 per cent (from $94 billion to $313 billion) between 2000 and 2019, with the global export value of trade in goods rising by around 195 per cent over the same period.
Although circular trade is a key enabler of a global circular economy, a range of regulatory and technical challenges are inhibiting its advancement.
OECD Economic Outlook reveals heavy global price of Russia’s war against Ukraine (OECD)
Russia’s invasion of Ukraine immediately slowed the recovery from the COVID-19 pandemic and set the global economy on a course of lower growth and rising inflation. The OECD’s latest Economic Outlook projects global growth to decelerate sharply to around 3% this year and 2.8% in 2023, well below the recovery projected in the previous Economic Outlook last December.
The economic and social impact of the war is strongest in Europe, with many of the countries hardest hit in Europe, given exposure through energy imports and refugee flows.
“Countries worldwide are being hit by higher commodity prices, which add to inflationary pressures and curb real incomes and spending, dampening the recovery,” OECD Secretary-General Mathias Cormann said during the presentation of the Outlook. “This slowdown is directly attributable to Russia’s unprovoked and unjustifiable war of aggression, which is causing lower real incomes, lower growth and fewer job opportunities worldwide.”
G20 economies show restraint in use of trade restrictions amidst ongoing instability (WTO)
“This report arrives at a time when the world economy faces several challenges. As we continue to fight against the COVID-19 pandemic, the conflict in Ukraine has created a humanitarian crisis of immense proportions with serious implications for millions of people, especially with respect to their food security. It is in this context of economic and trade uncertainty that G20 economies must show restraint in implementing trade-restrictive measures and exercise leadership in supporting open and mutually beneficial trade,” DG Okonjo-Iweala said.
The G20 Trade Monitoring Report makes reference to the recent WTO 12th Ministerial Conference (MC12) on 12-17 June, which secured unprecedented multilaterally negotiated outcomes.
G20: SA calls for reforms at UN to give emerging economies a stronger voice (IOL)
The South African government has called for wide-ranging reforms to the United Nations (UN) in a bid to enable emerging economies (EM) to have an effective voice in the global community. Minister of International Relations and Co-operation, Dr Naledi Pandor on Friday said that the UN must be strengthened to play the development support role expected of it, and promote its collaboration with continental and regional bodies.
G20: FAO says global threats to agrifood systems need complex approach (FAO)
The challenges undermining global food security call for a complex approach embracing investment, policy reforms and better use of resources, QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO) told a key meeting of the G20 today. “Recent global events, from the COVID-19 pandemic to the climate crisis, multiple conflicts around the world and the war in Ukraine, have all heavily affected agrifood systems in multiple ways,” Qu told the G20 Sherpa meeting of senior government representatives. Qu cited the recently launched 2022 edition of the State of Food Security and Nutrition in the World (SOFI) Report, which confirms that world hunger has increased again in 2021, reflecting growing inequalities across and within countries. It says 828 million people suffered from hunger in 2021, an increase of 46 million from 2020, and 150 million from 2019 before the pandemic.
Cascading global crises threaten human survival and the SDG roadmap is the way forward (United Nations)
The climate crisis, the COVID-19 pandemic and an increased number of conflicts around the world have placed the 17 Sustainable Development Goals (SDGs) in jeopardy, according to The Sustainable Development Goals Report 2022. The Report highlights the severity and magnitude of the challenges before us, with these cascading and intersecting crises creating spin-off impacts on food and nutrition, health, education, the environment, and peace and security, and affecting all the SDGs, the blueprint for more resilient, peaceful and equal societies.
“The road map laid out in the Sustainable Development Goals is clear,” stated Mr. Liu Zhenmin, United Nations Under-Secretary-General for Economic and Social Affairs. “Just as the impact of crises is compounded when they are linked, so are solutions.”
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Key South African trade route blocked as fuel costs surge (BusinessTech)
Protesters in a city in South Africa’s north east blocked roads including a key route linking the country to Mozambique with trucks Wednesday as they demonstrated against pump prices rising to a new record.
The road between Mbombela, 350 kilometers (217 miles) east of Johannesburg, and White River has been obstructed by parked trucks, as is the N4 highway connecting the city to the border with Mozambique and the port of Maputo, Callum MacPherson, regional operations manager at Hi-Tech Security Nelspruit, said by phone.
High expectations as NNPC takes off as corporate body (Daily Trust)
By next week, President Muhammadu Buhari will unveil a corporatised Nigerian National Petroleum Company Ltd (NNPCL) which will take off with N200 billion capitalisation, drawing high expectations from petroleum industry watchers.
Speaking at the recently concluded Nigeria Oil and Gas (NOG) conference in Abuja, the Group Managing Director and CEO of NNPCL, Mele Kyari, said by July 19, President Muhammadu Buhari will unveil the corporate NNPCL, which will make decision-making, and financing easier as well as procurement of best assets for the corporatised oil and gas firm.
AfDB approves €121m loan to Senegal to implement agricultural programme (Devdiscourse)
The Board of Directors of the African Development Bank Group today approved a €121 million loan to Senegal for implementation of an emergency agricultural programme that will benefit 850,000 small farmers, 35% of whom are women.
"Senegal's dependence on the outside world for basic commodities and foodstuffs is a real bottleneck and poses a threat to the country's food sovereignty, which has been sharpened by the war in Ukraine," said Mohamed Chérif, the Bank's Country Manager for Senegal. "This operation is intended to mitigate exogenous financial, economic, social and climate shocks and to maintain the upward trend in cereal production seen in recent years, especially by focusing efforts on the availability of key inputs including seeds and fertilizers to producers," he added.
African Development Bank extends €121 million food-production loan to Senegal to cushion impacts of war in Ukraine (African Business)
The Board of Directors of the African Development Bank Group (www.AfDB.org) approved a €121 million loan to Senegal for implementation of an emergency agricultural programme that will benefit 850,000 small farmers, 35% of whom are women.
“Senegal’s dependence on the outside world for basic commodities and foodstuffs is a real bottleneck and poses a threat to the country’s food sovereignty, which has been sharpened by the war in Ukraine,” said Mohamed Chérif, the Bank’s Country Manager for Senegal. “This operation is intended to mitigate exogenous financial, economic, social and climate shocks and to maintain the upward trend in cereal production seen in recent years, especially by focusing efforts on the availability of key inputs including seeds and fertilizers to producers,” he added.
Youth of Ghana who are 36% of population have no jobs – World Bank (Ghana Business News)
“While governments have created multiple policies and programmes to address youth unemployment over the years, the many programmes aimed at helping them have often fallen short of the massive needs,” the report said.
The sixth Ghana Economic Update titled “Preserving the future: rising to the youth employment challenge” suggests that to boost youth employment, Ghana also needs to strengthen its macroeconomic framework through decisive and sustainable fiscal consolidation, notably, by improving domestic revenue mobilization, reining in on energy sector expenses, and ensuring all public expenditures maximize value for money. It observes that such measures will help address Ghana’s debt sustainability concerns which have heightened over the past year.
Africa
All eyes on Zambia as Lusaka hosts African Union (Chronicle)
ALL eyes will be on Zambia next week as the country hosts the 41st Ordinary Session of the Executive Council of the African Union (AU) from July 14-15, 2022 in Lusaka at Mulungushi International Conference Centre.
The Theme for the gathering “Building Resilience in Nutrition on the African Continent: Accelerate the Human Capital, Social and Economic Development”.
The MYCM will consider progress made so far since the agreement establishing the tripartite FTA, and identify its contribution to the continental agenda in light of the African Continental Free Trade Area (AfCFTA).
Africa Demonstrates Readiness To Protect And Sustainably Develop Ocean Resources At UN Ocean Conference – OpEd (Eurasia Review)
The UN Ocean Conference (UNOC) co-organized by Portugal and Kenya from 27 June to 01 July 2022 in Lisbon, Portugal was a landmark ocean event for regrouping decision makers, innovators, private sector actors and stakeholders towards the implementation of the SDG Goal 14 and Aspiration 1.6 of Africa’s Agenda 2063, both related to the management of the Oceans, Seas and Marine Resources for Sustainable Development.
The AUC delegation to the conference showcased steps for promoting Africa’s blue economy and to send a strong signal on Africa’s readiness to protect and sustainably develop its ocean resources as well as its contribution to the global conversation on oceans by focusing on unlocking Africa’s potential for innovative, knowledge-based and high-revenue sectors while fostering sustainability and private sector activity, which further places emphasis on the integration of women, youth and Africa’s scientific community within the blue economy.
Traders highlight challenges to regional trade (Guardian Nigeria)
Traders in the West African corridor have highlighted various challenges affecting trade among the Economic Community of West African States (ECOWAS) members.
The traders under the aegis of West African Association for Cross-border Trade in Agro-forestry-pastoral and Fisheries Products (WACTAF), said poor infrastructure, such as poor electricity supply, bad roads, cost of fueling, kidnapping and banditry are seriously affecting trade on the Nigerian corridor.
Kenya and Uganda cry foul as reality of new taxes checks in (The East African)
Just a week after the new East African Community common external tariff (CET) band came into force, businesses are already feeling the pinch and crying foul over the “unintended consequences” of the regime.
Kenya and Uganda have filed complaints to the East African Business Council (EABC), the regional lobby, over the law that raised import taxes on goods from non-EAC countries to 35 percent.
WOFA Advocates Made in Africa Initiative at CHOGM22 (THISDAY Newspapers)
The urgent need for a Made in Africa initiative that would spur infrastructure revolution across the continent was put on the front burner by the World Forum for Africa (WOFA) team at the just concluded Commonwealth Head of Government Meeting, #CHOGHM2022, in Kigali, Rwanda.
During his interactions with these stakeholders, Mr. Haruna shared WOFA’s objectives which borders on convening an innovative annual global private sector led summit that would chart the right course for the achievement of creative, innovative and sustainable financing solutions for Africa’s infrastructure transformation.
Africa gets $13 billion relief from Afreximbank- Oramah (New Telegraph Newspaper)
President of Afreximbank, Cairo, Prof. Benedict Oramah, has described the African Continental Free Trade Zone Agreement, (AfCFTA) as a new normal which will change the face of trade across the African continent.
Speaking at the launch of a festschrift, titled “The New Normal As Option for Sustainable Development in Nigeria.” written in honour of the former Vice President of the African Development Bank, (AfDB), Dr. Olabisi Ogunjobi in Lagos, Oramah said that the components of the trade agreement have the propensity to transform trade on the continent.
EAC differs on African trade pact rules amid calls for one plan (The Star, Kenya)
The region is split on preferential Rules of Origin and tariffs on textile and apparel, sugar and sugar products, goods produced in Special Economic Zones (SEZs) and automotive sector, fresh details show, with trade experts calling for a harmonised deal.
For instance in the sugar sub-sector, the AfCFTA (African Continental Free Trade Area) secretariat has proposed a value-added standard–manufacture in which the value of non-originating materials does not exceed 60 per cent of the ex-works price of the product, subject to a mandatory review after five years.
Central bank governors, finance ministers beg again for Africa's debt relief (Tribune Online)
THE 2022 meeting of the African Consultative Group of Finance Ministers and Central Bank Governors of the 54 African member states of the World Bank and the International Monetary Fund (IMF) has ended in Marrakech, Morocco with a call on the two Bretton Woods Institutions to grant “rapid, comprehensive and substantial,” debt relief to Africa.
The opening of the 2022 African Caucus was marked by a message sent by King Mohammed VI of Morocco to participants wherein he called for more international support and cooperation to enable African countries to mitigate the impacts of the soaring inflation affecting the global economy and enhance their resilience in the face of external shocks.
This year’s African Caucus held under the theme, ‘Towards a Resilient Africa’ and called for a rapid implementation of the commitment made at the G7 Summit in June 2022, including the urgent need to improve multilateral debt restructuring frameworks and address the challenges related to debt vulnerabilities.
Greater democratic rule vital to boost security in West Africa and the Sahel (Modern Diplomacy)
Khatir Mahamat Saleh Annadif was presenting the latest report of the UN Office for West Africa and the Sahel (UNOWAS), which he heads, covering developments over the past six months in areas such as politics, security and human rights.
“National dialogues are underway in many countries to consolidate democratic governance at the same time that across large parts of the Sahel, men and women are leaving their land, fleeing to safety, and to ensure that their children can receive an education,” he said.
The positive adoption of 5G technology has tremendous potential to affect African communities and economies in a positive manner. 5G networks – if correctly taken up and rolled out – will offer African businesses and individuals the critical infrastructure to fully participate in the global workforce.
“5G is nowhere near reaching ubiquity in Africa or even most of the world. The regulatory environment governing 5G spectrum will continue to be a hindrance to 5G deployments across the region.”
Africa’s earliest adopters of 5G are facing teething problems that stand to delay their 5G goals. Business news outlet QuartzAfrica comments: "The challenges have revolved around spectrum regulation clarity, commercial viability, deployment deadlines, low citizen purchasing power of 5G enabled smartphones and expensive internet."
Global
Pakistan calls for 'emergency plan' to help crises-hit developing countries address spiraling food, fuel prices (Associated Press of Pakistan)
Pakistan has called for an “emergency plan” to enable the developing countries deal with the adverse impacts of the triple crisis of COVID-19, conflict and climate change, so that they can achieve the global anti-poverty Sustainable Development Goals (SDGs).
In his opening remarks to the workshop, the Pakistani envoy said that the crises have sent the prices of food, energy and other essentials soaring, with poverty having increased and so had inequality – among and within nations.
“If these trends persist, we will fall well short of achieving the SDGs – at the national and global levels,” he warned.
“We now need an emergency plan to prevent the disaster facing so many developing countries, particularly by mobilizing financial and other assistance to enable the affected developing countries to access affordable food, energy and other essential economic inputs.”
Officials from across Asia Pacific region to adopt multilateral declaration to accelerate global trade (PR Newswire)
The World Logistics Passport (WLP), announced at its second Annual WLP Global Summit it has almost doubled in size in its second year of operation – with its footprint now covering over 40 countries and nearly half (47%) of global trade – while WLP members including India, Vietnam and Kazakhstan, among others, are to adopt a new declaration to accelerate global trade.
The World Logistics Passport (WLP) is a global, private sector-led, initiative designed to smooth the flow of global trade, unlock market access through the creation of new trade routes and provides economic efficiencies to members.
Germany boosts food exports from developing countries with €150,000 (Daily Sun)
Germany’s Federal Ministry of Food and Agriculture is contributing €150,000 (CHF148,000) for 2022 to the Standards and Trade Development Facility (STDF) to help developing and least-developed countries (LDCs) meet international food safety, animal and plant health standards for trade.
The contribution was confirmed at a signing ceremony attended by Germany’s WTO Ambassador, Bettina Waldmann, and the Director of the WTO’s Administration and General Services Division, Nthisana Phillips, held on 8 July at the WTO.
World population expected to reach 8 billion by November — UN (Manila Bulletin)
“Today, two-thirds of the global population lives in a country or area where lifetime fertility is below 2.1 births per woman, roughly the level required for zero growth in the long run for a population with low mortality,” the report said.
The global population is projected to reach eight billion on November 15 this year, based on the latest projection by the United Nations (UN).
“Rapid population growth makes eradicating poverty, combatting hunger and malnutrition, and increasing the coverage of health and education systems more difficult. Conversely, achieving the Sustainable Development Goals, especially those related to health, education and gender equality, will contribute to reducing fertility levels and slowing global population growth.”
UNCDF: Growth Capital Plan to Assist the World’s Least-Developed Nations (Capital Finance International)
Preeti Sinha, Executive Secretary of UNCDF, said the IMIF would provide access to impact capital for cities and local governments “at scale for the frontier markets of today and the growth markets of tomorrow”.
UNCDF and Meridiam signed an agreement to collaborate on the International Municipal Investment Fund (IMIF). The investment vehicle — the non-OECD sleeve of The Urban Resilience Fund — has a focus on developing countries, and was launched by Meridiam and the Rockefeller Foundation. It will help to develop, finance, build and operate sustainable and economically sound infrastructure projects that have a critical role to play in adapting and mitigating urban climate change.
Russia Talks Trade & Economic Development With Iran (Russia Briefing)
Russia is looking to enhance its trade connectivity access to the Middle-east and South Asia, with Iran strategically important in allowing it to do so. Russia has Caspian Sea access via its ports at Astrakhan, which permits maritime shipment south to Iran’s Caspian ports at Anzali amongst others. From there, road, and from early 2023, rail transport can continue south to Bandar Abbas and the Chabahar Ports giving access to the Persian Gulf.
A statement was subsequently issued by the Russian Ministry of Foreign Affairs, saying “Russia and Iran assign particular priority to implementing joint investment projects, including in the sphere of port infrastructure development for a fully-fledged launch of the International North-South Transport Corridor.
The conclusion of a permanent agreement on a free trade zone between the Eurasian Economic Union (EAEU) and Iran will allow for deregulation of 80% of trading volume and goods and further strengthen the viability and competitiveness of Russian goods to the Iranian market as well as vice versa.
Recession Angst Spurs Pivot to Emerging World's Growth Engines (Bloomberg)
As panic over inflation gives way to fears about a global recession, emerging-market investors are making a pivot too -- they’re now favoring countries where interest rates are still low.
That’s a reversal from the first months of the year, when low-yielding bonds were dumped in favor of debt from nations like Brazil and Chile, which led the world’s tightening cycle. But with fears of recession superseding concerns about prices over the past weeks, even as inflation continues to spur pain from Sri Lanka to Argentina, having high interest rates is no longer seen as the benefit it once was. It could even be viewed as a drawback when low inflation and growth are at a premium.
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Fitch maintains SA’s sub-investment rating, stable outlook (Engineering News)
Ratings agency Fitch has maintained its stable outlook for South Africa, and affirmed the country’s foreign and local currency debt ratings at a sub-investment grade BB- rating. Fitch said the key factors for the rating were high and rising government debt, low growth and high inequality. The ratings were however supported by "a favourable debt structure... as well a credible monetary policy framework."
Giant new power plants undermine South Africa’s emissions pledge (Bloomberg)
In the rolling hills of South Africa’s Mpumalanga province, hundreds of builders, welders and engineers are putting the final touches to a gigantic new power station that’s set to burn as much as 15-million tons of coal a year until it is eventually shuttered in 2073.
The 4 800 MW dry-cooled Kusile plant and the almost identical Medupi facility, which was completed last year, will be key to meeting demand for energy in a country that’s been plagued by rolling blackouts since 2008. Environmentalists however caution that their continued operation will be a major impediment to South Africa meeting its commitment to eliminating greenhouse gas emissions on a net basis by 2050.
“It absolutely doesn’t make any sense to invest in mega coal-fired power stations in the face of a climate crisis when we should be focusing on a just transition to renewable energy,” said Melita Steele, interim program director for Greenpeace Africa, whose members chained themselves to Kusile’s entrance gates more than a decade ago to try and halt its construction.
Matawalle’s guns (Vanguard)
The 2020 SBM Intelligence Report on Nigeria said there were about six million illicit small arms in circulation in the country, up three-fold from the two million reported by Oxfam in 2016. The SBM report indicates that about 10 million small arms were on the loose in West Africa. Nigeria accounts for six out of every 10 illicit weapons in the region.
Given that many such weapons are military grade, their description as “small arms” is grossly misleading considering the amount of violence and destruction they can be used to unleash.
These weapons have “liberalised” and “democratised” conflicts. With them, every coward in the neighbourhood feels emboldened, invincible and hungry for a fight. The ISWAP and Boko Haram conflicts in Nigeria, Cameroon, Chad, Niger, Mali and Burkina Faso; the ethnic wars of South Sudan, the unravelling of Libya; the banditry in North and Central Nigeria, and indeed all conflicts in diverse places, are the direct manifestations of ease of access to weapons by unauthorised persons.
Matawalle is not the first governor or prominent citizen to make a rallying cry for ordinary Nigerians to take up arms in self-defence. Deposed Emir of Kano, Muhammadu Sanusi II, made a similar call in November 2014 at the height of Boko Haram’s callous and brutal reign of terror.
National Treasury allocates first phase R516m floods funding (SAnews)
The National Treasury has confirmed the allocation of R516 million in the first phase funding in response to the April flood disaster that caused significant damage to infrastructure in various provinces.
In the wake of the disaster, which largely affected KwaZulu-Natal, President Cyril Ramaphosa on 18 April declared a National State of Disaster. Over 400 people died in the floods, which also damaged 4000 homes and left about 9000 people displaced.
Six land-based borders prioritised for one-stop border management roll-out (Engineering News)
South Africa is creating a Border Management Authority (BMA) that will unify the border control functions and processes from various national departments, and BMA CEO and national commissioner Dr Mike Masiapato says the authority will also help to manage crucial transport and trade corridors.
Six land-based ports of entry have been identified to be the first forerunners of one-stop border posts, which will see the BMA deploy personnel, information technology systems and intelligence and information sharing systems to improve the efficiency of immigration and the movement of goods.
The model, called juxtaposed, that South Africa will pursue uses separate infrastructure on either side of the border, but with staff from each of the countries working in both facilities, enabling goods and people to be cleared for exit from a country and entrance into another through a single border post office, rather than on each side of the border.
Scale-up capacity in trade finance to support private sector – Governor BoG (BusinessGhana)
Financial institutions in the country must collaborate and take advantage of the opportunities offered by the African Continental Free Trade Area (AfCFTA) initiative to boost their businesses, Governor of Bank of Ghana, Dr Ernest Addison, has said.
To this end, he entreated financial institutions to strengthen their risk management systems and scale-up capacity in trade finance to support the private sector.
“Additionally, banks and non-bank financial institutions are encouraged to increase investments in digitisation platforms as well as cyber-security systems to facilitate safe and secure trade transactions through AfCFTA,” he said during the opening of the Africa Trade roadshow.
AfCFTA: Ghana's intra-Africa exports to increase by 132 per cent (BusinessGhana)
Regarding the continent, increased FDI is expected to increase Africa’s exports to the rest of the world by 32 per cent in 2035 as well as increase intra-Africa trade by 109 per cent. According to the World Bank’s new report, the AfCFTA had the potential to bring significant economic and social gains for the region, leading to higher incomes, lower poverty, and faster economic growth.
The projected increase in the country’s intra-Africa exports, the report noted, will be on the back of increased foreign direct investment (FDI) to Ghana and the continent at large.
ACR budgets US$100m for Zim agric insurance (The Herald)
AFRICAN Risk Capacity (ARC) Limited intends to invest US$100 million towards agriculture insurance in Zimbabwe, as it broadens its African footprint and interventions to improve the strategically key sector’s resilience in the face of climate change.
ARC is a specialised agency of the African Union (AU) established to help African Governments to enhance their capacities to better plan, prepare and respond to the extreme weather events and natural disasters.
The agency predominantly works with governments, humanitarian agencies and small to medium farmers across the continent, but intends to broaden its services in the country through collaborations with local insurance companies.
Solidarity calls on the private sector to apply for energy generation permits en masse (Creamer Media's Engineering New)
The only viable and sustainable solution to South Africa’s escalating electricity crisis is for small independent power producers (IPPs) to immediately flood the market on a large scale, trade union Solidarity’s Research Institute (SRI) has said.
Through a concerted effort by the private sector – including businesses and private citizens alike – to invest in IPP capability, the country’s energy crisis could be resolved within months, the trade union said during a media briefing on July 8.
South Africa: Nuclear energy is not off the table (ESI Africa)
Over the weekend, the President of South Africa, Cyril Ramaphosa, was misquoted by an SABC News reporter as saying that “nuclear energy is off the table”.
The President was interviewed in Botswana at the 7th SACU Summit on the energy crisis, amongst other challenges the country is facing. He did, however, break ranks in the interview by expressing his concerns about renewable energy not being available at any given time, which does not provide solutions to South Africa’s energy crisis.
Making the most of the African Continental Free Trade Area in Zim (Zimbabwe Independent)
Zimbabwe is one of the 54 countries that have signed (and one of the 27 countries that have ratified) the AfCFTA agreement to date. The benefits of the AfCFTA agreement are unarguably huge, but implementation of this agreement also poses some challenges that needs to be tackled to ensure that countries can ultimately benefit from this arrangement. Some of the issues include the involvement of the private sector, the readiness of the country and the availability of adequate capacities to ensure a successful implementation of the AfCFTA.
Africa
Without sustainable finance, Africa risks $415b economic loss to climate change (Guardian Nigeria)
Energy and financial experts are worried about sustainable financing for Africa, especially in the energy sector, stressing that Africa risks a yearly $415 billion economic loss due to climate change by 2030 if the infrastructure is not improved.
While the experts on one hand said Africa needs over $23 billion to upgrade existing refineries on the continent to produce cleaner fuels and displace charcoal with modern fuels, they insisted that without significant improvements in infrastructure resilience, yearly economic losses from natural disasters’ damage to urban infrastructure alone would increase from $300 billion currently to $415 billion by 2030.
At Dakar Summit, Buhari Joins Other African Leaders To Launch $93bn Investment Fund (Channels Television)
President Muhammadu Buhari on Thursday joined African leaders in Dakar, Senegal to launch “the largest financial package ever mobilised in the history of the International Development Association (IDA) – $93billion – geared towards a “robust and resilient economy for Africa.”
Seventy percent of the global fund will be spent on African countries between now and 2027, with Nigeria getting the biggest cut among the African States, said a statement signed by presidential spokesperson Garba Shehu.
ISO pledges support for Prof Dodoo's ARSO presidency (Graphic Online)
The International Organization for Standardization (ISO) has pledged to commit technical and financial resources to the development of standards in Africa.
The worlds most trusted standards organisation will also provide experts to help build a robust standards regime and ensure that African standards were aligned with that of the ISO.
With Ghana’s Professor Alex Dodoo leading the standards community as President of the African Organization for Standardization (ARSO), the ISO is confident that the time was ripe for standards to drive trade and help position African businesses on the apex of global trade.
SADC registers progress on TIFI programmes (SADC)
The Southern African Development Community (SADC) is making steady progress on its programmes to facilitate industrial development, finance and investment and trade in goods and service among Member States. This emerged out of the Trade, Industry, Finance and Investment (TIFI) Thematic Group hybrid meeting held on 16 June 2022 to discuss progress on the implementation of its programmes to deepen regional economic integration.
According to a joint update from the SADC directorates of Finance, Investment and Customs and of Industrial Development and Trade, 25 percent of the 64 outputs or deliverables from the TIFI Multi-Year Action Plan 2021-2023 have been completed with support from International Cooperating Partners (ICPs) such as the European Union, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (GIZ), World Bank and the African Development Bank (AfDB).
Why is this UN Body Pushing for Developing Nations in Africa to Regulate CryptoCurrencies? (bitcoinke.io)
The United Nations Conference on Trade and Development (UNCTAD) is calling on developing nations to monitor the growth of cryptocurrencies which it warns risks replacing ‘domestic currencies.’
In its policy brief, UNCTAD warns that the use of cryptocurrencies may lead to financial instability risks.
Talks yield positive results as Angola brokers peace between Rwanda and DRC (News24)
Rwanda and the Democratic Republic of Congo's (DRC) first step to mending fences will be through the "Luanda Mechanism" talks, which will get underway on 12 July.
During the 12 July meeting, Rwanda and the DRC are expected to establish a Joint Permanent Commission, which will share intelligence about rebel operations affecting both countries.
The major problem is instability in the eastern DRC, where M23 rebels have been fighting against government forces.
Business council offers to defuse Uganda-Rwanda trade deadlock (Monitor)
Speaking on the side-lines of a closed door meeting at the Rwandan High Commissioner in Kampala last week, Mr John Bosco Kalisa, the EABC chief executive officer, said whereas there were still some challenges, they were optimistic that trade relations between Rwanda and Uganda will be restored.
The East African Business Council (EABC) has offered to organise a bilateral business forum between Uganda and Rwanda as a way of restoring trade relations.
Research: Rating Action: Moody's confirms BOAD's Baa1 ratings; outlook stable (Moody's)
Moody's Investors Service ("Moody's") has today confirmed the long-term foreign currency issuer and senior unsecured debt ratings of The West African Development Bank (BOAD) at Baa1 and changed the outlook to stable.
While Moody's continues to believe that the political situation in Mali and more broadly in the Sahel remains highly risky, the decision to confirm BOAD's rating at Baa1 reflects Moody's view that the risk of a severe deterioration in asset quality has been significantly reduced.
African Heads of State Reaffirm Commitment to Recovering from Crises and Achieving Economic Transformation (Mirage News)
DAKAR, July 7, 2022 – African Heads of State and Government reaffirmed their commitment to seize key opportunities to respond to multiple crises and steer their economies to transformative paths, in partnership with the World Bank’s International Development Association (IDA).
“We are convening this Summit in a context of deep crisis, marked by the double impact of the COVID-19 pandemic and the war in Ukraine. While we have exponentially increased our spending to respond to the health crisis and foster the economic and social resilience of our people, our fiscal space has shrunk dramatically, and debt vulnerabilities were exacerbated,” said President Macky Sall of the Republic of Senegal who hosted the event.
TROUBLED KINGDOM: SADC calls extraordinary summit to address Eswatini crisis (Daily Maverick)
Eswatini’s King Mswati has finally agreed to attend the extraordinary summit of the security organ of the Southern African Development Community (SADC) on 21 July, after keeping the organisers guessing for weeks about his presence, sources said.
SADC intervened in the crisis in the country last year after unprecedented violent protests in June which left scores of protesters dead and much infrastructure destroyed or damaged. After another flare-up of violence in October, Ramaphosa visited Eswatini in November to meet Mswati and announced afterwards that the king had agreed to launch a national political dialogue.
Experts advocate increased collaboration between Nigeria, South Africa (Guardian Nigeria)
Consistent business collaborations of private sector stakeholders across countries on the African continent would surely guarantee its economic growth, eradicate poverty and place Small and Medium Enterprises (SMEs) on a better platform for transacting business with European countries.
According to the Consular General, there is a need for Nigeria and South Africa, being the two biggest economies on the continent, to come together and bridge the gap so that both countries can get the right trajectory for economic growth.
The Managing Director, WESGRO, Michael Gamwo, on his part, identified continuous partnership between private sector stakeholders in Nigeria and South Africa as the only means of guaranteed African economic growth.
DPA of ECOWAS Meet in Accra for Collaborative Planning Exercise (News Ghana)
The Directorate of Political Affairs (DPA) of the Economic Community of West African States (ECOWAS), through the Conflict Prevention unit of the Mediation and Coordination of Regional Political Affairs Division, and the USAID Reacting to Early Warning and Response Data Program in West Africa II (USAID REWARD II), convened a three-day Collaborative Planning Exercise (CPX) at the Kofi Annan International Peacekeeping Training Center (KAIPTC) in Accra, Ghana.
“The complementary work of regional, national, and community-based organizations in Ghana will build viable relationships with the diverse stakeholders operating in the EW/ER space”, he added.
Blockchain can provide infrastructure for financial inclusion in Africa – Standard Bank (Creamer Media's Engineering News)
To address the unique challenge of providing the large portion of the African population that remains unbanked with more accessible tools for financial management and inclusion, Standard Bank and others have been researching and developing transformative fintech and blockchain products, says Standard Bank head of blockchain Ian Putter.
Informal trade in charcoal and firewood in Africa creates need for sustainable approach (Forests News)
As demand for charcoal and other wood energy soars in Central Africa, with wide-ranging consequences for biodiversity and local communities, a new brief from the Center for International Forestry Research and World Agroforestry (CIFOR-ICRAF) calls for governments and others to develop strategies to ensure coordination of policies and enforcement. The lack of alignment between governments on official policies also leaves small-scale traders — particularly women — vulnerable to exploitation.
With charcoal and firewood comprising roughly 60 percent of the energy needs for cooking and heating in Sub-Saharan Africa, this trade is likely to increase. Africa’s population is expected to double by 2050.
Why a peaceful DRC is critical for East Africa (Monitor)
DR Congo now has up to September 29, to undertake internal and constitutional processes to ratify the Treaty and deposit the instruments of ratification with the Secretary General. DRC’s admission excited most of us as it provides a wider market for our products and services under the removal of non-tariff barriers on free movement of people, goods and services across the region.
However, DRC has for long been facing a security crisis and the consequences have been devastating for the Congolese people with over five million displaced.
Global
G20 kicks off in Bali, covering global issues from climate change to food crisis and war in Ukraine (The World On Arirang)
The G20 Foreign Ministers Meeting has officially begun in Bali, Indonesia, where the top diplomats of the world's leading economies are going to discuss a range of global issues from climate change to the food crisis and the war in Ukraine.
Opening the summit on Friday, Indonesian Foreign Minister Retno Marsudi stressed that it's the G20's responsibility to end the war at the negotiating table, not on the battlefield.
A remarkable win-win relationship is growing between China and Africa (SABC News)
According to a report by Swiss-African Business Circle, over the past 10 years China has maintained its position as the largest investor in Africa, a continent that is in dire need of direct foreign investment and job creation.
Among several examples of China’s economic stimulation of the continent was in Zimbabwe, where the government of President Xi Jinping aided the Harare regime to develop its infrastructure, including telecommunications, energy as well as agriculture.
China-Africa cooperation is also credited with pushing back frontiers of unemployment in the continent. On average, it created some 18 562 jobs per annum. This led to a reduction unemployment and improvement in poverty alleviation efforts, and a drastic promotion in investment was also realized. This has led to tangible evidence in Africa’s industrialization as well as gross economic development across various sectors.
Ukraine war divides Western alliance from the Global South (Nikkei Asia)
Still, until recently, BRICS has remained an acronym in search of a purpose and struggled to become a substantive institution representing important developments in international relations. That might now be changing.
Prompted by larger geopolitical shifts, with the United States in relative decline and China challenging it as the would-be new global superpower and further propelled by the war in Ukraine, BRICS might finally be emerging as an organization that genuinely speaks for the Global South.
Russia's invasion of Ukraine has turned out to be a critical wedge issue dividing the United States and its Western allies from almost all of the Global South, including the BRICS countries.
Next China: Biden's Bargaining Chips (Bloomberg)
The US is considering rolling back some of the tariffs imposed on hundreds of billions of dollars worth of Chinese goods under Donald Trump’s administration, according to people familiar with the deliberations.
Why now? The alarming speed at which prices of everything from food to gasoline are rising is threatening to push the US into recession. But economists are skeptical this will do much to tame inflation.
Meta Stock Sinks As Investors Ponder: Is The Sun Setting On The Glory Years For Facebook And Mark Zuckerberg? (Investor's Business Daily)
Meta stock has lost more than half its value since last September, as Facebook and Chief Executive Mark Zuckerberg have tethered the company's future to the metaverse, an entirely new method of communicating.
As Meta's latest quarter closed June 30, founder Zuckerberg reportedly told staffers on a conference call that the company faces one of the "worst downturns we've seen in recent history" when it comes to Facebook's current status amid a troubling economy, according to the New York Times.
India & Free Trade Agreements: Make haste slowly (The Financial Express)
After a hiatus of almost a decade, India has signed free trade agreements (FTAs) in quick succession in the past few months, with Mauritius and the UAE and an interim FTA with Australia.
The new FTAs mark a bold, reinvigorated India seeking to maximise its advantages from the economic and geopolitical upheavals worldwide. For most trading partners, seeking reduction in tariffs for access to the Indian market is a big ask. With skilful negotiations keeping sensitive products from key sectors outside of the purview of the FTAs, including dairy, agriculture, automobiles, medical devices and consumer electronics, the stumbling blocks that prevented India from being part of the Regional Cooperation for Economic Partnership (RCEP) in 2019 have so far been avoided.
As corporations increasingly make public commitments to reduce greenhouse gas (GHG) emissions, allegations of “greenwashing” have been elevated to the global stage. Consumers, investors and government bodies alike are seeking clear standards by which to measure concrete action on climate-related goals. A recent report published by Ceres1 —The Investor Guide to Climate Transition Plans in the U.S. Food Sector (May 2022)2 (the “Investor Guide”)—describes the evolution of these trends in the agricultural industry.
According to the Investor Guide, climate transition plans should outline clear and concrete short and medium-term actions to achieve a company’s long term commitment and address climate change throughout the company, from growth strategy to operations.
Global trade hits record $7.7 trillion in first quarter of 2022 (UNCTAD)
The growth, which represents a rise of about $250 million relative to Q4 2021, is fuelled by rising commodity prices, as trade volumes have increased to a much lower extent. Though expected to remain positive, trade growth has continued to slow during Q2 2022. “The war in Ukraine is starting to influence international trade, largely through increases in prices,” the report says.
UN Chief Warns G20 About Famine Risks - UrduPoint (UrduPoint News)
Guterres said that the Ukraine conflict is contributing to other crises and may cause social and economic devastation. The UN chief believes that the Ukraine crisis is behind the current spike in food prices and increase in the number of undernourished people.
UN Secretary-General Antonio Guterres warned G20 nations on Friday about the risk of multiple famines this year.
'No more wasting time on GSP': FBCCI stresses FTA with USA (The Business Standard)
Bangladesh has no other option but to enter into comprehensive free trade agreements in goods, services and also investment with major regional trade and economic blocs along with bilateral and reciprocal FTAs with the US, Canada and the UK, covering over 95% of the global market in order to effectively deal with the predictable post-LDC graduation challenges, the FBCCI says.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has recommended that the government start talks on a free trade agreement (FTA) with the United States – a key export destination for the country – immediately instead of wasting time negotiating for a restoration of generalised system of preferences (GSP) privileges there.
2021 Annual Statistical Report on United Nations Procurement - World (ReliefWeb)
As the United Nations continued to support COVID-19 response and recovery efforts, a new report published by UNOPS on behalf of the UN system details how 41 UN organizations spent $29.6 billion on goods and services last year. The United States remained the largest supplier country in 2021, providing $2.3 billion of goods and services to UN organizations – increasing its supplies by almost $400 million compared to the previous year.
During Thailand's durian season every year, orders from China for the thorny "king of fruits" always surge, driving up shipments from the world's top fresh durian exporter.
This year, after the Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade deal that entered into force in January, Thailand's durian sales to China have been further boosted.
Faster customs clearance and other trade facilitation measures provided by the RCEP agreement, as well as the launch of the "Durian Express" and special fruit train services to China, helped boost the trade of Thai durians and reduce exporters' costs, said Narongsak Putthapornmongkol, president of the Thai-Chinese Chamber of Commerce.
Import explosion and trade deficit pushing Nepal into economic crisis (The Kathmandu Post)
According to a research report entitled "Remittances, Banking Credit to Private Sector, and Nepal’s Trade Deficits" unveiled by the Confederation of Banks and Financial Institutions, Nepal, on Thursday, 20 percent of the loans issued by banks have gone to fund trading, which particularly represents wholesale and retail services.
An import explosion in the past few months has drained foreign exchange reserves to dangerously low levels, threatening to precipitate an economic disaster with most indicators showing warning signs. Experts have described Nepal's current economic situation as the "Dutch disease" because feverish consumption has been a bonanza for the trading sector, but brought disaster to manufacturing and agriculture. They say that a huge amount of money is being invested in the unproductive sector, resulting in a trading boom and a gaping trade deficit.
Sanctions are worsening global economies (Monitor)
Economically devastating embargoes are perceived as viable alternatives to direct military confrontation with a nuclear armed Russia, accused of aggression. Russia, one of the world’s leading producers and exporters of crude oil, oil products and natural gas, joins Iran and Venezuela, two other major worlds’ largest oil producers whose capacities are apparently curtailed by Western sanctions.
Combined, Russia, Venezuela and Iran are reported to produce roughly 17.7 million (18 percent of total globe oil production) barrels daily – bpd in accordance to Congressional Research Service (CRS) Report 2020.
Imposing sanctions on major world supplier of not only oil but also other critical farm or industrial range of inputs and food, during times when the world is grappling with shortages stemming from adverse effects of the Covid lockdowns, refugees crisis, climate change, increased debt and looming economic recessions, migrations driven by poverty and inequalities, then insecurity and famine in East of Asia which occurred after 20 years of US occupation , was such undoing that only points to indifference Western countries harbor against the rest of the world.
Related News
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Local news
Trucks Block South Africa Road to Mozambique as Fuel Costs Surge (Bloomberg)
Protesters in a city in South Africa’s north east blocked roads including a key route linking the country to Mozambique with trucks Wednesday as they demonstrated against pump prices rising to a new record. The road between Mbombela, 350 kilometers (217 miles) east of Johannesburg, and White River has been obstructed by parked trucks, as is the N4 highway connecting the city to the border with Mozambique and the port of Maputo, Callum MacPherson, regional operations manager at Hi-Tech Security Nelspruit, said by phone.
the dtic assist SA companies look for export and investment opportunities in Angola (The dtic)
Nineteen South African companies supported by the Department of Trade, Industry and Competition (the dtic) will get an opportunity to explore trade and investment opportunities in Angola when they participate in the 37th edition of the annual Feira Internacional de Angola (FILDA) trade exhibition that will take place in Luanda from 12-16 July 2022. The companies are from six of the country’s provinces and are operating in the agro-processing; chemicals; plastics; electronic; capital equipment; mining and metals; and clothing and textiles sectors.
the dtic assisted the companies to showcase their products and services in the exhibition through its Export Marketing and Investment Assistance (EMIA) Scheme. The objective of the scheme is to develop export markets for South African products and services, and to recruit new foreign direct investment into the country.
Govt, stakeholders discuss investment in logistics (The New Times)
Experts are optimistic about economic gains Rwanda could get by establishing itself as a regional logistics hub, to improve the supply chain and facilitate trade among African countries. Earlier this year, the World Bank, in a report on Rwanda themed ‘Boosting regional integration in the post-Covid era,’ stated that Rwanda, serving as an intermediating node between the East and Central Africa regions, offers prospects to increase revenues and generate efficiency gains through the concentration of logistics services. Given Rwanda’s location, conducive business and trading environment, there is an opportunity for it to become a strong regional logistics hub, Antoine Kajangwe, Director General of Trade and Investment in the Ministry of Trade and Industry said.
“In many ways, we are able to make progress across the region but when you don’t have trade logistics, then you are forced to import from distant countries because they have a way of getting products to you.”
Miraa traders hit with transport, export fees (Business Daily)
The government has introduced a tonnage-based levy on commercial miraa transporters where the traders will pay up to Sh10,000 in licence fees. The new charges contained in the recently published Crops (Miraa) Regulations are part of rules meant to ensure the production of quality miraa, both for export and local consumption. Miraa traders transporting less than 500 kilogrammes of the commodity will pay Sh5,000, while those handling between 1,000 and 10,000 kilos will produce Sh10,000.
The rules seek to impose a Sh30 levy on each kilo of exported miraa and related products and Sh60 per kilo for imports. Export licences will be acquired for Sh20,000 and renewed at Sh10,000 while importers will pay Sh50,000 for the permits and Sh30,000 to renew. Under the regulations, an export permit will cost Sh4,000 while an import permit will cost Sh6,000. The regulations were published in June, three years after they were formulated. Traders have in the past paid varied rates depending on the county of operation, exposing farmers to exploitation.
SGR records flat revenue despite increased cargo (Business Daily)
The Standard Gauge Railway registered a marginal drop in revenue in the first quarter of the year, in a stagnant performance that may delay its break-even. The latest data from the Kenya National Bureau of Statistics (KNBS) shows that the passenger and cargo trains generated Sh3.65billion in the first quarter of 2022, down from Sh3.66 billion between January and March last year, translating to a 0.32 percent drop. Cargo trains accounted for the biggest chunk of the revenue generated in the first quarter of 2022 at Sh3.08 billion representing 84 percent of the total revenue while passenger service posted Sh569.27million.
The flat growth comes at a time when the logistics sector is reeling from the Covid-19 shocks, which affected long-haul transits following the imposed night curfew and restrictions on movement in and out of the Nairobi metropolitan area, Mombasa, Kilifi, Kwale and Mandera.
The cargo service remained in operation as the passenger trains were halted in line with the government’s directives, to support flow of goods through the Mombasa port. Despite the flat revenues, the volume of freight transported through SGR increased by 10 percent from 1.39 million tonnes in the first three months of 2021 to 1.53 million tonnes in the first quarter of 2022.
M-Pesa launches interest-free loans for buying goods (Business Daily)
Safaricom has unveiled a zero-interest credit service that will allow millions of its customers to shop for goods up to Sh100,000 and pay later in a move that is set to disrupt the mobile loans market. Users of the interest-free product to be known as Faraja will buy goods and services from as low as Sh20 to a maximum of Sh100,000 and pay the same amount without any extra fees witnessed on other credit products. However, only the normal M-pesa transaction charges will apply at the point of sale on the product to be bankrolled by Equity Bank.
It will work like a digital credit card where a user will have a credit limit of up to Sh100,000, depending on their credit score, to make purchases against and then repay at a later date within the 30-day window.
Safaricom’s till and pay-bill service has risen to take an 85.8 percent market share of non-cash payment for ordinary goods and services, underlining the entrenchment of the mobile money platform in everyday transactions. In the year to March, payments of Sh1.4 trillion were made through the Lipa-na-M-Pesa platform and a total of Sh9.78 trillion was paid through the M-Pesa the popularity of the platform as a means of commerce as opposed to paying via cash.
Animal feeds prices keep rising as yellow maize import flops (Business Daily)
The price of animal feeds has shot up to historic levels as attempts to ship in yellow maize to curb the rising cost flopped with millers citing a shorter import window. The price of a 70 kilogramme bag of layers marsh has now jumped to Sh4,500 from Sh3,800 in April, chick mash is going for Sh4,940 from Sh4,200 while dairy meal is now selling at Sh2,850 from Sh2,500, pointing to tough times for consumers who will have to absorb extra cost when buying animal products such as eggs. The government opened the import window for duty-free yellow maize last November and is expected to close it at the end of October. The millers have not shipped in the commodity since then, citing the difficulty of securing the produce that is free of genetically modified organisms (GMO).
“We cannot import the yellow maize now unless the window is extended. This means that the price of feeds will continue to rise in the coming days unless we get sufficient raw material for processing,” said Joseph Karuri, chairman of the Association of Kenya Feeds Manufacturers.
Mr Karuri said that it would take at least three months before the yellow maize gets to the country because of the longer route that it would have to take following the interruption of trade along the Black Sea, which was occasioned by the ongoing Ukraine-Russian war.
Uganda has attained middle income status, Ubos insists (Monitor)
Uganda Bureau of Statistics (Ubos) has insisted that Uganda has attained middle income status. While addressing a media briefing yesterday, Dr Chris N. Mukiza, the Ubos executive director, said government data for the 2021/22 financial year indicates that gross domestic product per capita is estimated at $1,046, which is within the middle income threshold. On July 1, he said, the World Bank had released its economic update indicating that Uganda’s gross national income per capita for the 2020/21 financial was $840, which meant that the country had not crossed into the threshold for middle income status.
“This created confusion among the general public,” Dr Mukiza said, adding: “The reference periods in the two reports is different. Whereas the report by government was based on the financial year 2021/22, the one by World Bank was based on the financial year 2020/21. Thus, the per capita income in the two reports refer to two different periods, the government of Uganda report being the most up to date.”
Angola, Namibia to open new border posts this year (ANGOP)
The Republics of Angola and Namibia plan to open, later this year, new official border posts at their common border, with a view to increasing trade and consolidating solidarity ties.
The new posts may be opened in the provinces of Cunene, Namibe and Cuando-Cubango (Angola) and Ruacaná, Oshikango and Rundu (Namibia), according to the Director for Institutional Communication and Press of the Angolan Migration and Foreigners Service (SME), Simão Milagres.
Speaking to the press on Tuesday in Lubango, during the opening of the 2nd bilateral meeting between the SME and the Directorate for Migration Control and Citizenship of the Republic of Namibia (DCMCN), Mr. Milagres stressed that the intention was a result of the existing cooperation between the two countries in the context of migration.
Buhari Seeks Total Democratization of West African Subregion (This Day)
President Muhammadu Buhari has declared that Nigeria will continue to seek consensus on the full resumption of democratic governance throughout the 16-nation West African subregion. Responding Thursday in Lisbon, Portugal, to commendations by President of the Portuguese Parliament, Augusto Santos Silva, on the role Nigeria is playing under the present administration, stabilizing West Africa and Guinea Bissau in particular, the President regretted that three countries in the subregion have slipped back to undemocratic, military rule saying the former Portuguese colony was lucky to have survived those attempts.
While attributing some of these reversals to the process of development which the new nations will pass through, the Nigerian leader said Nigeria will continue to work within the framework of the Economic Community of West African States (ECOWAS) to reverse the unwanted situation, stressing that “we have to go back to proper democratization.”
Why DRC market is exciting to CRDB (Dailynews)
CRDB Bank has said it will champion social development in the Democratic Republic of Congo (DRC) with a 30 million US dollars (70bn/-) subsidiary. The lender said in a statement on Wednesday from Lubumbashi, the DRC’s second-largest city that it finalised plans to launch operations in Congo in the second half of this year. The investment is part of CRDB Group’s regional expansion strategy, targeting the larger Eastern African market.
The Group CEO and Managing Director, Mr Abdulmajid Nsekela said that in regard to the DRC subsidiary, which will be based in the commercial hub of Lubumbashi, the bank has already got approval from the Central Bank of Tanzania (BoT) since last May. “We see the DRC as an exciting market for us since it provides a unique opportunity for our Group to transform lives beyond our borders,” Mr Nsekela said.
‘Manufacturers under severe pressure over diesel, raw materials’ (The Sun Nigeria)
Members of Nigeria’s Organised Private Sector (OPS) have expressed concern over consequences of rising diesel prices and raw materials now threatening local manufacturers.
Beyond the need for diesel for transportation logistics, the stakeholders noted that the current model of high dependence on the national grid to power businesses has continued to hobble production processes in the economy, considering the vastness of the country which does not support the highly centralised regime of national grid.
They argued that the continued ownership and control of the transmission component of the power supply chain is also a challenge to grapple with, as many manufacturers are left to generate their own electricity to bridge supply gap.
Challenges slow growth in manufacturing (New Telegraph)
The first six months of year 2022 for the country’s manufacturing sector was marred by profound trajectories, including the sudden war between Russia and Ukraine, importation of contaminated petrol, subsidy crisis, elections and new alcoholic tariff among many others. These challenges slowed the pace of growth and performances in the real sector of the economy.
Already, members of the organised private sector (OPS) have expressed worries that the fragile Nigerian economy in terms of performance and growth trajectory is going to pose challenges to the country’s manufacturing sector as greater attention is expected to be paid to political issues than economic transformation by the Federal Government. Not too far in the beginning of the year 2022, specifically in the first week of January, government announced new excise duty on carbonated and non-alcoholic drinks despite outcry from OPS for government to reconsider the move. Since then, it has been one challenge and the other in the country’s manufacturing sector, with many firms forced to review their operations.
Another major happening in the half year under review was the promoters of the the Africa Continental Free Trade Area (AfCFTA) disclosing that the abnormalities being experienced in the foreign exchange rate conversion were costing multilateral trade in the continent an estimated $5 billion yearly and also playing a major role in the continent’s GDP retrogression. Precisely, the management of Af- CFTA said that was the reason the Pan-African Payments and Settlements System (PAPSS) of the Afreximbank was debuted to assist the continent to save the $5 billion annually loss from the accruals conversions to dollars in exchange rate.
Following the announcement by the Central Bank of Nigeria (CBN) on new circular on e-Valuation and e-Invoicing for import and export, the Manufacturers Association of Nigeria (MAN) urged CBN to hold on its implementation until stakeholders were consulted. MAN suggested to the apex bank that there was need to ensure that CBN does not go ahead to implement the guidelines without accommodating the constructive inputs of stakeholders, especially those whose businesses would be negatively impacted. The Director-General of MAN, Segun Ajayi-Kadir, stated that the association was concerned about the new CBN circular on E-Valuation and E-Invoicing for import and export as it related to some measures of impact on the foreign exchange (forex) profile of the country.
African trade and integration news
Fixing the Pan-African Payment System for start-ups (The Africa Report)
The latest milestone for the Africa Free Continental Trade Area (AfCFTA) plan is the new interconnected Pan-African Payment and Settlement System (PAPPS) which launched in January this year. It will facilitate cross-border payments, boost intra-African trade and provide expansion opportunities for businesses. This is sorely needed and will significantly benefit Africa’s start-up ecosystem, but five months from launch it’s clear that more needs to be done to ensure it fulfils its potential.
The current picture is concerning: Africa has more than 171 mobile-money wallets – most of which can’t work with each other – more than 1000 banks and more than 12 card networks in 55 countries with little interoperability. Over 80% of African cross-border payment transactions must be routed offshore for clearing and settlement using third-party banks usually located outside the continent. African local currencies need to be converted into hard currencies to make cross-border payments, which leads to significant losses through currency conversion fees as well as reducing the volume and frequency of cross-border trade. This also results in inefficiencies including time lags and high foreign currency reserve requirements for banks. Consequently, Africa’s intercontinental trade remains below its potential – in 2020 the share of intra-Africa trade was just 16%, meanwhile in Asia this figure for the same time period stood at 58.5%.
This new financial market infrastructure connects African markets, enabling cross-border payment in respective local African currencies. However, much more could be done to help start-ups in African countries and deliver the benefits of this new payment system.
Financial experts, academics chart path for good governance (The Guardian Nigeria)
Contemporary issues in governance, economy and trade will take centre stage in Lagos tomorrow, July 8, 2022, as banking and finance experts and academics, including President of Afrexim Bank, Cairo, Prof. Benedict Oramah, launch a festschrift, titled “The New Normal As Option for Sustainable Development in Nigeria.”
The 20-chapter book, written in honour of former Vice President of African Development Bank, and pioneer Pro-Chancellor of Glorious Vision University (GVU), Chief Bisi Ogunjobi, will assess budget financing, trade restriction, human capital development, governance and COVID-19 policy response plan. Other issues to be interrogated are sustainable public economic recovery in Nigeria, security, globalisation and social justice, fallow state of Africa, foreign direct investment and AfreximBank as catalyst for intra-Africa trade and investment
Trade Finance Demand and Supply in Africa: Evidence from Kenya and Tanzania (AfDB)
This report presents the findings of the fourth study in a series of trade finance surveys in Africa. For the first time, we conduct a deep-dive analysis of the trade finance market in Kenya and Tanzania. In doing so, we use data from 804 firms – that cut across multiple sectors of these economies – and 58 commercial banks – that account for over half of all commercial banks in both countries.
Involve border agencies for free movement of goods - ECOWAS Director of Trade (GhanaWeb)
Director of Trade at Economic Community of West African States (ECOWAS) Commission, Kolawole Sofola, has said there can only be free movement of goods and services under Africa Continental Free Trade Area (AfCFTA) if border agencies are brought on board. He noted that intra-regional trade on the continent is relatively low compared to that of Europe [70%] and Asia [60%]. Intra-African trade in 2020 declined from 18% to 16% due to the outbreak of the global pandemic – coronavirus. The disruption in the supply chain by the COVID-19 outbreak led to a decline in revenue.
“One of the challenges perhaps is as tariffs and duties go down, Any products that are made in West Africa should be able to transit freely in West Africa without customs or duties and that’s why we are of Free Trade Area but we also found that there are blockages to the movement of goods…We need to work with our border agencies to make sure that they can process products that move across borders as quickly as possible,” he pointed out. He also called on all heads of government to address the challenges concerning cross-border trade on the continent.
Creative Arts is one of the ways we can promote AfCFTA—Okraku Mantey (BusinessGhana)
Mr. Mark Okraku-Mantey, the Deputy Minister of Tourism, Arts and Culture, says the creative arts industry is indispensable in the promotion of African continental trade and integration. He said the arts and culture industry had long taken up the initiative, with notable exploits within the concept of continental integration. The Deputy Minister, who was addressing a Public Private Partnership Forum (PPPF) held by the Ministry in Ho, said the industry had developed the nation into a layer for creative talents and art icons, and had been instrumental in sustaining trade networks across the Continent. “To talk about the African Continental Free Trade Area (AfCFTA), before we even got to the stage of accepting the policy, we have signed a treaty or pact called the African Continental Free Trade Area, the creative industry have had this culture over the years. “Creative arts is one of the ways that we can market the African continental free trade area because it has already been in that motion for a very long time. And so we need to spread the news that the creative industry is one of the ways we can make the AfCFTA very popular,” he said.
Russia-Ukraine crisis presents challenges for Rwanda, EAC but there’s a silver lining (The New Times)
According to the Food and Agriculture Organisation of the United Nations (FAO), in 2021, Russian and Ukrainian wheat exports accounted for 30 per cent of the global market with sunflower oil exports at 55 per cent. Russia and Ukraine are also significant exporters of maize, barley and rapeseed oil, with Russia and Belarus being leading exporters of fertiliser but both currently under economic sanctions. In the East African Community (EAC), Rwanda, Tanzania and the Democratic Republic of Congo (DRC) source more than 50 per cent of their wheat from Russia and Ukraine, with 11 other African countries in a similar position.
The short-to-medium term global impact is likely to result in price increases anywhere between 8 per cent to 22 per cent in wheat, maize, other coarse grains and oilseeds which FAO estimate could lead to the undernourishment of over 13 million people worldwide. Rwandan Finance Minister Uzziel Ndagijimana has said these price increases were already causing rising inflation and slowing economic growth in Rwanda.
This scenario poses both a threat and an opportunity for the region. The threats are obvious, but the opportunities are for countries to act quickly to enhance food security and open up export opportunities for critical crops and related finished products both regionally and internationally.
Buhari attends IDA for Africa summit in Dakar (Vanguard)
President Muhammadu Buhari departed Abuja, Wednesday, to participate in the International Development Association (IDA) for Africa Summit in Dakar, Senegal.
An institution of the World Bank Group, IDA, is deepening its support to drive a resilient recovery for countries hit by the global crises of climate and COVID -19, growing levels of insecurity and, more recently, by the impact of the war in Ukraine. It hopes to do this through its historic $93 billion 20th replenishment cycle (IDA20) which goes into effect between July 1, 2022 and June 30, 2025.
China’s trade ties with Africa continue to strengthen (Modern Ghana)
Trade between China and Africa is growing. The General Administration of Customs of China recently noted that bilateral trade between China and Africa amounted to USD 254.3 billion in 2021, an increase of 35.3% from 2020. In the first quarter of 2022, China’s Customs Data confirmed that trade between the two regions increased by 23%, to USD 64.8 billion.
A recent report by Economist Corporate Network, supported by Baker McKenzie and Silk Road Associates, BRI Beyond 2020 (Economist report), showed how these strengthening trade links are, in part, a result of favourable financial incentives offered to African jurisdictions by China. According to the Economist report, 33 of the poorest jurisdictions in Africa export 97% of their exports to China with no tariffs and no customs duties. This report noted that bilateral trade was still heavily centred on China’s import of Africa’s natural resources. However, in recent years China had increased its import of manufacturing products from more diversified economies such as South Africa.
A UK-Africa trading partnership for the 21st century (GOV.UK)
The vast, diverse and dynamic Continent can never be defined in a few words: Increasingly its story is one of modern cities – places like Lagos, Luanda and Kigali – where new tower blocks are springing up over the skyline and with young, energetic and educated citizens. It’s a story of a booming fintech industry. Major firms like Nigeria’s Paystack, South Africa’s Yoco, not to mention Chipper Cash, are connecting millions of consumers and entrepreneurs to the global financial system. This is also a story of a continent that is a green energy pioneer.
Of course, for too many people, in too many places, this latest chapter in Africa’s story is yet to unfold.
A strategy that is about building a sustainable, enduring and productive partnership. A partnership in which we use trade’s power to make dependable friends to strengthen the rules-based order. This partnership is about truly understanding Africa’s needs and exploring how our businesses can support them through projects that create jobs, support inclusion and sustainability and bring lasting value. In turn this will build the Continent’s economic strength, so that countries can command a fair price for their vast resources and their people’s skills, that reflects their true worth.
Africa: Where do rich countries stand on their debt commitments? (The Africa Report)
“Let me be very clear, the UK would like to transfer some of its Special Drawing Rights (SDRs) to Africa through the African Development Bank (AfDB),” Vicky Ford, UK minister for Africa, Latin America and the Caribbean, said at the 2022 Annual Meetings of the AfDB Group in Accra in May. The UK government reiterated that statement on 27 June, and many other developed countries have also expressed their willingness to transfer SDRs to African countries. Recently, Akinwumi Adesina, president of the AfDB, said he was “in talks with Canada and France” on this subject. However, despite all these announcements, nothing has yet materialised.
The African Union Commission, in cooperation with the Embassy of the Arab Republic of Egypt, hosted a team from the COP 27 Incoming Presidency, led by Ambassador Mohamed Nasr, Director of the Climate Change, Environment, and Sustainable Development Department of the Ministry of Foreign Affairs of Egypt and the COP 27 Presidency Lead Negotiator from 29th June until 2nd July 2022.
The visiting delegation met with H.E. Monique Nsanzabaganwa, Deputy Chairperson of the Commission, to discuss the ongoing preparations for the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change. The meeting underlined the significance of the African COP 27 as an opportune moment for Africa to voice its priorities and bring forward its demand with regard to climate change. The meeting commended that Africa will be a cross-cutting theme in all the 11 thematic days planned on the margins of COP 27.
During the visit, the African Union Commission hosted the fifth session of the “Africa Climate Talks: Road to COP 27” series entitled “Towards a Just Transition in Africa” organized the Permanent Mission of the Arab Republic of Egypt in cooperation with the Department of Agriculture, Rural Development, Blue Economy and Sustainable Environment of the. The session highlighted Africa’s commitment to a green transition that is Just and Fair, that accounts for the socio-economic realities in the continent, and Africa’s legitimate rights to development and eradication of poverty.
Inaugural ECA monthly press briefing focuses on the modernization of national statistical systems. (UNECA)
The Economic Commission for Africa (ECA) on Tuesday 5 July launched the ECA Monthly Press Briefing, a channel through which the Commission aims to enhance collaboration with the media and facilitate regular access to its experts and knowledge products. During the event, ECA’s African Center for Statistics (ACS) presented some of its ongoing work and underscored the importance of collaboration between ECA and the media journalists who regularly utilize data and statistics to report the news and put stories into context. ACS Director, Oliver Chinganya, delivered a presentation detailing the work being done by the Center in areas such as demographic and social statistics, economics statistics and geospatial information statistics and more.
Mr Chinganya discussed the Centre’s realization of the need to update the 2008 Systems of National Accounts (SNA), which is the internationally agreed upon standard set of recommendations on how to compile measures of economic activity.
Global economy news
The Global Findex Database 2021: Financial Inclusion, Digital Payments, and Resilience in the Age of COVID-19 (World Bank)
The fourth edition of Global Findex - the world's most comprehensive database on financial inclusion - offers a lens into how people accessed and used financial services during COVID-19, when mobility restrictions and health policies drove increased demand for digital services of all kinds. Published every three years since 2011, Findex is the only global demand-side data source allowing for global and regional cross-country analysis to provide a rigorous and multidimensional picture of how adults save, borrow, make payments, and manage financial risks. Findex 2021 data were collected from national representative surveys of about 130,000 adults in over 120 economies. The latest edition includes new series measuring financial health and resilience and contains more granular data on digital payments adoption, including merchant and government payments. The Global Findex is an indispensable resource for financial service practitioners, policymakers, researchers, and development professionals.
Training opens new horizons for women in ports (UNCTAD)
Ports are dominated by men. Globally, women’s participation rate in ports is only 18%, according to an UNCTAD port performance scorecard. Their participation in ports’ operations and services departments is even lower at 16%.
UNCTAD’s TrainForTrade port management programme is helping to bridge the gender gap by empowering more women in ports. In 2021, 35% of its trainees were women. “The share of women participants in the programme is very encouraging,” said Shamika N. Sirimanne, director of UNCTAD’s technology and logistics division.
Interview: BRICS commitment to multilateralism important for holding world together -- South African scholar (China.org.cn)
The BRICS commitment to reinforcing multilateralism during its recent summit is important as the group has a capacity to exert influence in the world, Philani Mthembu, executive director at the Institute for Global Dialogue, a South African foreign policy think tank, has said. Multilateralism “is what holds the world together and could help build a better world for all.” But over the last few years, the role played by multilateral institutions, such as the World Health Organization, World Trade Organization and the United Nations, has taken a hit, and multilateralism has been confronted with challenges, Mthembu told Xinhua in a recent interview.
How Africans can assess the value of the latest G7 summit (The Conversation)
Leaders of the world’s seven advanced economies have once again pledged economic support for Africa and other developing countries. But the realisation of these commitments depends on political developments in the Group of Seven (G7) countries, specifically the United States, the outcome of Russia’s war with Ukraine, and whether Russian president Vladimir Putin retains his grip on power. How each of these political developments will pan out is difficult to tell. But each has an important bearing on the decisions African leaders must make in terms of which power blocs, if any, they align with.
African governments especially face many challenges, amid escalating tensions between western democracies, Russia and China. Africa’s interests would be best served if its leaders were to avoid being drawn into the hostile divide between Russia and China and the west. But it may not be possible to avoid taking sides while trying to maximise advantageous partnerships.
The G7 summit offered the most recent insights for Africa into how the western advanced nations are considering their stakes in Russia’s invasion of Ukraine, and the impact that could have on developing nations. Sorting substance from rhetoric will take time. African scepticism as to whether the west will deliver has merit. As African governments assess the significance of the G7’s promises of support in areas of vital concern to Africans, four key political possibilities could advance or derail them.
Trade restrictions are inflaming the worst food crisis in a decade (World Bank)
The worst global food crisis in a decade was one of the top issues discussed at the 12th ministerial meeting of the World Trade Organization last month . It is a crisis made worse by the growing number of countries that are banning or restricting exports of wheat and other commodities in a misguided attempt to put a lid on soaring domestic prices. These actions are counterproductive—they must be halted and reversed.
The price of wheat, a key staple in many developing countries, has shot up by 34 percent since the Russian invasion of Ukraine in late February. Other food costs have also risen. In response, as of early June, 34 countries had imposed restrictions on exports on food and fertilizers – a figure approaching the 36 countries that used such controls during the food crisis of 2008-2012.
These actions are self-defeating because they reduce global supply, driving food prices even higher. Other countries respond by imposing restrictions of their own, fueling an escalating cycle of trade actions that have a multiplier effect on prices.
How Farm Subsidies in Wealthy Countries Harm African Producers | Alexander Jelloian (Foundation for Economic Education)
It’s estimated that in 2021, approximately 490 million of Africa’s almost 1.4 billion people lived on less than $1.90 per day. To get a sense of African poverty, note that 9 of the 10 poorest countries are in sub-Saharan Africa. Many factors cause Africa’s underdevelopment, but contrary to what some may think, the continent’s economic prospects are far from hopeless. Indeed, even in the developed world, much can be done to help improve the lives of millions of the world’s poorest people. If we in the West are to help those that we proclaim to care about, one of the first policies to go should be price-distorting agricultural subsidies.
Western (and Chinese) subsidies are bad for many African farmers. Africa relies on commodity exports, and when developed states dole out gargantuan sums of money to domestic producers, global commodity prices fall. These subsidies not only waste an enormous amount of taxpayer money, but by artificially lowering commodity prices, subsidies distort the price mechanism and prevent African producers from earning the fair market price for their labor. The case study of cotton subsidies impacting West African producers illustrates this phenomenon well. The four West African countries that have a significant interest in the global cotton trade are Benin, Burkina Faso, Chad, and Mali. Together they are known as the Cotton-4. They are all on the United Nations’ Least Developed Countries list and collectively earn about 60 percent of their total crop revenue directly from cotton. The Cotton-4 countries only produce about 3 percent of the world’s cotton.
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President Ramaphosa receives Just Energy Transition framework (SAnews)
President Cyril Ramaphosa says the Just Energy Transition (JET) Framework will serve as a key evidence-based guide for policy making for South Africa’s transition from a carbon intensive economy towards a greener and cleaner economy. The framework was presented to him by the Presidential Climate Committee (PCC) on Tuesday.
“As this Just Transition framework underscores, combating climate change is not only an environmental imperative, but an economic one as well. This framework is an evidence-based document and a victory for evidence-based policymaking. “The publication of this framework must now serve as a call to action to each of us to embrace the opportunities presented by a low-carbon, inclusive, climate resilient economy and society,” he said.
Namibians show interest in US trade (The Namibian)
Several Namibian entrepreneurs have shown interest in pursuing business opportunities in the United States after making contacts at the Namibia-US trade summit held in Namibia early this month. This was said by Namibia Chamber of Commerce and Industry (NCCI) chief executive officer Charity Mwiya on Monday, although she could not provide further details.
The Ministry of Industrialisation, Trade and SME Development chief information officer Elijah Mukubonda said the ministry was still collating data from different sources to have a clearer picture of the situation. The NCCI small and medium-scale enterprises development officer, Travis Mathews, sent out a memo on Monday last week to the Namibian business community requesting feedback.
Kenya surpasses South Africa as continent’s top avocado exporter (Capital Business)
Kenya has overtaken South Africa to become Africa’s top exporter of avocados. In Central Kenya, where the majority of the country’s small-scale avocado farmers are found, coffee bushes are fast being replaced by avocado trees amid global demand and higher earnings. There is a problem, however, theft. Avocado thieves are keeping farmers in the county awake as they opt to form vigilante groups to guard their crops.
Kenya’s imports from South Africa more than doubles to Sh17.7bn (Capital Business)
Kenya’s imports from South Africa more than doubled in the first three months of 2022 after rising by 64 percent to Sh 17.7 billion from Shs10.8 billion reported during a similar period in 2021. Data from the Kenya National Bureau of Statistics (KNBS) indicate that overall, imports in Africa registered an increase of 24.7 percent from KSh 54.0 billion in the first quarter of 2021 to Shs67.3 billion in the period under review. While imports from Tanzania increased by 23.7 percent compared to a similar period last year, the import bill was a decline from the previous quarter which stood at Shs14.8 billion. The country’s total imports increased from Shs508.7 billion in the first quarter of 2021 to Shs 593.2 billion in the first quarter of 2022.
KEBS urges manufacturers to adopt new standards to boost trade (Capital Business)
The Kenya Bureau of Standards (KEBS) has called on local manufacturers and importers to conform to the 205 new standards which have been developed targeting various products to boost their competitiveness. In the third quarter of Financial Year 2021/2022 (January to March 2022), KEBS developed and published the new standards categorized into seven categories which include; Food & Agriculture standards (5), Chemical standards (49), Cosmetics standards (18).
Speaking during the inaugural Emerging Standards Workshop to assess their implementation on Monday, Kenya Bureau of Standards MD, Bernard Njiraini said manufacturers are expected to ensure they adhere to the new standards when six months window after gazettement elapses in December this year.
Used trucks, buses import ban revs up flagging auto industry (The Standard)
Kenya has stepped up efforts aimed at developing a robust local auto industry by banning the importation of second-hand buses and trucks. The ban took effect last Friday and is expected to play a key role in growing the local vehicle assembly industry. The Kenya Bureau of Standards (Kebs) announced in May plans to roll out new standards aimed at improving safety on Kenyan roads. Other than buses and trucks, Kebs also intends to ban the importation of second-hand tractor heads and prime movers beginning next year.
UN: Over 4 million Kenyans own crypto, highest share in Africa (Business Daily)
Kenya has the largest share of its population with cryptocurrencies in Africa, says the United Nations, pointing to the country’s exposure to the ongoing meltdown in the crypto market. A report by United Nations Conference on Trade and Development (UNCTAD) says that 8.5 percent of the population or 4.25 million people own cryptocurrencies in the country. This places Kenya ahead of developed economies such as the United States, which is ranked sixth with 8.3 percent of its population owning digital currencies.
Transporters protest ban on second-hand buses, trucks (Business Daily)
Long-distance transporters in Kenya have protested the ban on the importation of second-hand buses and trucks, older than three years since their year of manufacture, even as authorities say the policy takes effect on July 1.According to transporters, the new policy will give transporters from other countries in East Africa an edge in the sector as new ones are expensive. Transporters have also claimed that lowering the age limit from eight to three is a further attempt by the government to force the use of standard gauge railway as it will make long-distance trucks more expensive. Car Importers Association of Kenya (CIAK) chairman Peter Otieno said the ban will affect not only importers but Kenyans who will not be able to import new trucks which will in turn increase the cost of transportation as the number of such units will reduce in the coming months.
Yatani: Why we are considering DP World to manage Lamu port (Business Daily)
Kenya turned to port operator Dubai Port World (DP World) to manage Lamu Port due to a lack of capacity at the state-run Kenya Ports Authority. Treasury Cabinet Secretary Ukur Yatani said DP World was among port operators being explored by the government as potential private partners to run the new port. Lamu port was launched last year following delays linked to funding shortfalls and the operalisation of the three berths.
“For us actually the motivation (for signing an MoU with DP World) is Lamu port, we have put Sh50 billion into Lamu port from the exchequer and we do not have the capacity to run it,” CS Yatani said. “There are other players including DP World and others who have done very well in port management so we are asking whether they can be our partners. That does not confer t them any financial gain,” he said.
Kenya has been at pains to explain the rationale behind signing a concession with DP World to undertake the development, operation, management and expansion of transport logistics services in Kenya on various components.
CS Yatani said the country has not yet committed to an agreement but a memorandum of understanding to grant private parties the right to run and operate port terminals and infrastructure such as container freight, dry ports and storage facilities.
Tourism players step up push for open skies policy (Business Daily)
Players in the tourism industry have asked the government to implement the open skies policy to ensure the tourism hubs attract more international airlines. The industry players said they are looking to meet President Uhuru Kenyatta who is expected to tour the Coast region, to deliberate on the importance of implementing the open sky policy to revive the international tourism segment that dwindled at the onset of the Covid-19 pandemic.
“We have a problem and a challenge, international airlines that are trying to get licences to fly to Mombasa are being stopped ostensibly to protect our national carrier. There is a lot of focus on Mombasa because the President is coming to launch his projects. Let’s lobby on the open skies policy,” said Pollman’s Tours and Safaris Director, Mohammed Hersi.
Non-Traditional Export up by 17 percent in 2021- CEO of GEPA (GhanaToday)
Revenue from Ghana’s Non-Traditional Export (NTE) increased from 2.846 billion in 2020 to $3.330 billion in 2021, an increase of $484m representing 17 per cent. The Chief Executive Officer of Ghana Export Promotion Authority (GEPA), Dr Afua Asabea Asare, who disclosed this at the launch of the 2021 NTE Report, said available statistics have revealed that NTE was increasing at an average rate of four per cent over the past five years and has contributed an average of approximately 20 per cent to the total export.
On the sector-by-sector contribution to the NTE, she said the manufacturing sector contributed $2.81billion representing 84 per cent, the agriculture contribution was $467 million representing 14 per cent, and industrial arts and crafts contributed $45.2million representing two per cent.
According to the CEO, the products were exported to 152 countries in the European Union (EU), the United Kingdom (UK), African Union, Economic Community of the West African States and other advanced countries.
Mobile money adoption drives Nigeria’s banking penetration to record high (Businessday)
Higher adoption of mobile money is driving the growth of account ownership in financial institutions particularly in Sub-Saharan Africa (SSA) countries like Nigeria, a recent 2021 Global Findex report by World Bank has said. An analysis of the report titled ‘Financial Inclusion, Digital Payments, and Resilience in the Age of COVID-19, showed that Nigeria’s banked population increased by 15.6 percentage points to 45.3 percent in 2021, the highest in 10 years from 29.7 percent in 2011. The 45.3 percent put Africa’s biggest economy in the 18th position out of 25 SSA countries.
“Mobile money has become an important enabler of financial inclusion in Sub-Saharan Africa especially for women as a driver of account ownership and of account usage through mobile payments, saving, and borrowing,” the report stated.
US’s Zambia investment plan targets African food security (African Business)
Zambia’s post-pandemic drive to diversify from mineral exports received a healthy boost as USAID announced an investment package worth over $44m. Aimed at “spurring private investment at a scale that could never be matched by foreign aid alone”, TradeBoost Zambia will build upon USAID’s new flagship, continent-wide Africa Trade and Investment programme.
Just three sectors – retail trade, mineral extraction and construction – constituted almost half of Zambian GDP before the pandemic. USAID’s focus on agricultural development will be welcomed in a country where population growth outstrips domestic agricultural production, which accounts for only 5.8% of GDP despite providing employment to 70% of Zambians. In the short term, it is hoped that an $8.5m export deal with agricultural companies Zdenakie and NewGrowCo will also help to relieve pressure on East African grain importers suffering the consequences of the war in Ukraine.
Curbing Tunisia’s crippling illicit financial flows (ISS Africa)
Tunisia loses about US$1.2 billion annually to illicit financial flows (IFFs) – around 3% of the country’s gross domestic product. These outflows involve the illegal transfer of unlawfully earned money or capital from one country to another.
From 2008 to 2015, the Economic and Social Commission for Western Asia ranked Tunisia first for IFFs and eighth for corruption in the Middle East and North Africa. In 2015, illicit financial inflows made up US$2.6 billion (11.4%), and outflows constituted US$1.28 billion (5.6%) of Tunisian trade. More recent figures aren’t available – highlighting a major gap that needs Tunisia’s urgent attention.
The problem is likely much more extensive than available data suggests.
African trade and integration news
The creation of the African Continental Free Trade Area (AfCFTA) provides a unique opportunity to boost growth, cut poverty, and reduce Africa’s dependence on the boom and-bust commodity cycle. A World Bank (2020) report estimates that the AfCFTA has the potential to raise income in the continent by 7 percent by 2035 and lift 40 million people out of extreme poverty, mainly by spurring intraregional trade (termed the “AfCFTA trade scenario” for purposes of this analysis). Reductions in nontariff barriers on goods and services and improvements in trade facilitation measures will account for about two thirds of the US$450 billion in potential income gains by removing long delays across most of the continent’s borders and lowering compliance costs in trade, making it easier for African businesses to become integrated into regional and global supply chains. This report builds on that earlier study by including potential gains arising from greater flows of foreign direct investment (FDI), termed the “AfCFTA FDI broad scenario,” and from deeper integration beyond trade, the “AfCFTA FDI deep scenario.” FDI has traditionally been low in Africa. The AfCFTA is likely to attract cross-border investment by eliminating tariff and nontariff barriers and replacing the existing patchwork of bilateral and regional trade deals with a single, unified market. Investors in any one of 55 member countries will have access to a continent of 1.3 billion people with a combined GDP of US$3.4 trillion. Integration in global and regional value chains offers a further magnet for FDI and the jobs, investment, and know-how that FDI brings.
Right infrastructure needed to enhance intra-Africa trade - Trade Expert (Graphic Online)
A trade expert, Maame Awinador-Kanyirige, has urged African governments to put in place the right road infrastructure to facilitate trade on the continent. Although the Africa Continental Free Trade Area is expected to remove trade barriers on the continent, she said one of the critical things that has to be done was the need to put in place an effective transportation system to enable the smooth movement of goods.
In an interview with the Graphic Business on June 29, 2022, on the effect of the two-year border closure due to COVID-19 on the Ghanaian economy in terms of cross border trade, she said an improved transportation system was the only way to move goods at a cheaper cost between states.
COVID-19 poses risk to smooth operation of AfCFTA – AU (Businessday)
The African Union (AU) says COVID-19 poses the most formidable risk to the smooth operation of the African Continental Free Trade Area (AfCFTA) agreement. AU in a statement, Tuesday, ahead of an industrialisation-themed continental meeting said, “COVID-19 pandemic has further heightened the risks of perpetuating the continent’s trade and business vulnerability.’’ It stressed that the pandemic and its attendant disruption of global supply chains have brought to the fore the urgency and significance of driving industrialisation in the African continent.
The statement came ahead of the AU’s high-level industrialisation-themed continental summit, slated for November 20 to 25 in Niamey, the capital of Niger. The summit will be held under the theme “Industrialising Africa: Renewed commitment towards inclusive and sustainable industrialisation and economic diversification.
Making trade easier for Africa’s youthful population (Businessday)
The youth are spearheading a lot of change initiatives not only in Nigeria but also across Africa. The world’s population is estimated to hit 10 billion people by 2055. It’s projected that Africa will account for 57% of the growth at about 1.4 billion people. With Africa’s youthful population growing there is a growing need to ensure that the youth are well resourced. If harnessed, the creativity and innovation of the huge youthful population can play a key role in Africa’s economic transformation.
Across the continent, the informal sector has provided a major source of employment for many youths. Majority of them are in the small and medium enterprises (SME’s) space. This resort to informality is due to the need to explore available opportunities and earn a living. SMEs in Africa have proven to be key drivers of growth, innovation development and job creation.
A vibrant SME segment provides a strong foundation for development, increased standards of living and poverty reduction.
Sadly, the challenges with facilitating trade especially among SMEs are well known. They include, fragmentation, market access, operational and administrative inefficiencies and in some cases, bureaucratic delays.
SADC developing measures to ease trade facilitation in the Region (SADC)
The Southern African Development Community (SADC) is developing and implementing customs instruments to tackle challenges that contribute to higher transaction costs in order to ease trade among countries in the region. The customs instruments include logistics, simplification and harmonisation of documentation associated with cross-border trade, improving transparency in operations of regulatory agencies, harmonisation of standards and technical regulations, harmonisation of Sanitary and Phytosanitary measures (SPS), monitoring and resolution of Non Tarif Barriers (NTBs), as well as improving the business environment in which transactions take place.
SADC is also conducting Time Release Studies (TRSs) along its corridors to assess bottlenecks and efficiency in the clearance of goods crossing the border posts. TRS is a method endorsed by the World Customs Organisation (WCO) for assessing a country’s trade facilitation performance. It does so by measuring the average time from arrival of goods at the border until permission is given for the goods to enter home consumption.
The North South Corridor (NSC) is earmarked for the first regional TRS in 2021/2022 and 2022/2023 financial years. The NSC connects the South African port of Durban to Lusaka, Zambia, Lubumbashi, Democratic Republic of Congo, and to Lilongwe and Blantyre in Malawi, through Johannesburg (South Africa), Botswana, and Zimbabwe, and is a vital corridor for trade and the sustenance of SADC regional integration. SADC is supporting the implementation of trade facilitation measures to both the at-the-border and behind-the-border initiatives. This is with regard to requirements for access to markets outside the SADC Region.
On 08-09 July 2022, the Southern African Development Community (SADC) will hold the 33rd Committee of Ministers of Trade and 22nd Ministerial Task Force for Regional Economic Integration at Crossroads Hotel in Lilongwe, Republic of Malawi. The purpose of the meeting for the 33rd Committee of Ministers of Trade is to consider progress report on the implementation of the Protocol on Trade and its annexes. The key issues to be discussed include; Rules of origin, Sanitary and Phytosanitary Measures (SPS), Technical Barriers to Trade (TBT), ratification of the Free Trade Area and implementation of Trade in Services Protocol. On the other hand, the 22nd Ministerial Task Force for Regional Economic Integration will consider progress report on implementing the Industrialisation Strategy and Road Map 2015-2063. The key issues include a progress report on the ratification of the Protocol on the Industry, Private Sector engagement, Value Chains, Macro Convergence, Infrastructure Development, AfCFTA and rules of origin.
Sacu to refocus on development of value chains…as it prioritises financing for industrialisation (New Era)
The Southern African Customs Union (Sacu) member states have agreed to refocus the bloc’s work programme on industrialisation through the development of regional value chains, export, and investment promotion. Speaking at the 7th Summit of Heads of State in Bostwana last week, Executive Secretary Paulina Elago noted that Sacu has prioritised, financing for industrialisation, trade facilitation and logistics together with the implementation of the African Continental Free Trade Area (AfCFTA) as key focus areas. “This refocused Work Programme is deliberately structured to ultimately position Sacu as the manufacturing and innovation hub for the continent, and in doing so, to take full advantage of the AfCFTA,” said Elago at her last Sacu summit, given her term of office ends in October 2022.
Tax disputes, trade wars headache for new EABC board (The East African)
The East African Business Council (EABC), which last week elected a new executive committee, says it will expedite the formation of a trade remedy committee to deal with disputes and cut disruptions in the East African Community (EAC) Common Market.
The executive committee was scheduled to meet Ugandan President Yoweri Museveni on June 30, amid threats by Kampala to withdraw duty remission in retaliation to a trade war with Kenya involving agricultural products, and blamed on Nairobi’s persistent introduction of tax measures on Uganda’s exports.
“We are having so many challenges in accessing markets for Ugandan goods in Kenya. “In fact, Uganda is trying to pull out of the duty remission scheme but we are working on keeping them there,” said Simon Kaheru, chairperson of the EABC Ugandan Chapter, who was retained as the vice-chair to the council. “Uganda has surplus industrial sugar but there’s nowhere to sell it. The same with milk and other commodities,” he added. If Ugandan manufacturers pull out of the duty remission scheme, this would have far-reaching consequences on intra-EAC trade as no country would have mandate to collect import revenues.
Advancing integrated development (China.org.cn)
Over the past 20 years, the African Union (AU) has made great achievements in promoting African integration and maintaining peace and security in Africa. China advocates multilateralism and supports the democratization of international relations, so it has always attached importance to cooperation with the AU and regarded it as one of the important partners in building a China-Africa community with a shared future.
Africa is an important region for the joint construction of the BRI. With 52 African countries as well as the AU Commission having signed cooperation agreements under the initiative, Africa has become the region with the largest number of countries participating in the initiative.
China has supported the AfCFTA since its establishment. In the China-Africa Cooperation Vision 2035 adopted by the Eighth FOCAC Ministerial Conference in November 2021, China committed to actively participate in the development of the AfCFTA, as it will not only help promote intra-regional trade and African economic integration, but also help combine China’s development experience, technology and capital with Africa’s rich natural and human resources, injecting new vitality into China-Africa cooperation.
At present, China and Africa are striving to build a China-Africa community with a shared future in the new era to further strengthen China-Africa cooperation. The nine programs announced at the Eighth FOCAC Ministerial Conference identified the priority cooperation projects and objectives of the two sides in the next three years.
Global economy news
the real transition toward a sustainable economy will first and foremost be carried out by the Private Sector. Companies are investing as never before in net-zero strategies, sustainably produced products and decarbonization of global supply chains. Both public and private efforts translate around the world into an incredible effort to put a price on carbon as well as develop carbon measurement and accounting standards. It is also important to take into account issues of verifiability and certification — and to avoid double counting. This is an unprecedented and most welcome commitment to the green economy. Yet, from a world trade perspective, this effort is also associated with some challenges.
The most important one is associated with the risk of market fragmentation. For example, more than 60 different carbon pricing schemes already exist globally. Fragmentation coming from these schemes risks generating trade frictions and unpredictability for businesses seeking to decarbonize. It also risks marginalizing developing countries and small businesses, in their efforts to participate to global value chains.
2022 High-Level Political Forum on Sustainable Development kicks off in New York (UNECA)
The 2022 High-Level Political Forum on Sustainable Development (HLPF) officially opened on 5 July, with a call to action from Collen Kelapile, President of ECOSOC and Permanent of Representative Botswana to the United Nations, to overcome the challenges facing the global community, outlining many reasons for optimism regarding sustainable development.
ECOSOC President champions optimism ‘against all odds’ at key UN development conference (UN News)
The senior UN official outlined five reasons for his optimism “against all odds”, beginning with successes in controlling the COVID-19 pandemic, in many countries. While acknowledging its detrimental effects on societies, people and the global development agenda, he said the pandemic has also “served as a wakeup call in exposing many aspects of our societies which were not right”.
Despite rising inflation, major supply-chain disruptions, policy uncertainties and unsustainable debt in developing countries – all of which have slowed the global economy – Mr. Kelapile cited the latest forecast in the World Economic Situation and Prospects for global growth of 3.1 per cent.
Global natural gas consumption is expected to contract slightly in 2022 and grow slowly over the following three years as Russia’s war in Ukraine pushes up prices and fuels fears of further supply disruptions, according to the IEA’s latest Gas Market Report. Today’s record high gas prices are depressing demand and causing some gas users to switch to coal and oil, while recent sharp cuts in Russian gas flows to Europe are raising alarms about supplies ahead of the winter. The turmoil is damaging natural gas’ reputation as a reliable and affordable energy source, casting doubts about the role it was expected to play in helping developing economies meet rising energy demand and transition away from more carbon-intensive fuels. The recent developments have led to a considerable downward revision of gas’ growth prospects. Global gas demand is set to rise by a total of 140 billion cubic metres (bcm) between 2021 and 2025, according to the new Gas Market Report – less than half the amount forecast previously and smaller than the 170 bcm increase seen in 2021 alone.
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Eskom crisis: ANC NEC hears calls for state of emergency, moving power utility to energy dept (Engineering News)
"There were a lot of calls made by ANC leaders on how the government should respond to the crisis, and some people felt that there must be a state of emergency on the energy crisis, especially when you consider what this means for townships and other areas," a well-placed source who attended the meeting told News24.
However, the ANC NEC did not make concrete resolutions on the way forward in the energy crisis gripping South Africa.
South Africa's Eskom, trade unions yet to solve outstanding issues as severe load shedding extends (China.org.cn)
Trade unions have settled some of their demands with Eskom, South Africa's national power utility, but they haven't reached an agreement on two outstanding issues, a union spokesperson said on Monday, as a severe load shedding was extended to Monday.
Eskom and trade unions are set to meet on Tuesday to discuss the wage offer and give feedback from their member workers on the company's latest wage proposals, Luphert Chilwane, media officer of the National Union of Mineworkers (NUM), told Xinhua in a telephone interview.
South African business activity expands at faster pace in June – PMI (Engineering News)
The S&P Global South Africa Purchasing Managers' Index (PMI) rose to 52.5 in June from 50.7 in May, posting its highest reading in just over a year. Anything above 50 indicates growth in the sector.
South African companies surveyed attributed higher sales to a recovery in economic conditions, particularly in regions affected by recent floods.
ICRC to Gazette $22bn PPP Projects in 2022, Says Acting DG (THISDAY Newspapers)
NIGERIA: The acting Director-General, Infrastructure Concession Regulatory Commission (ICRC), Mr. Michael Ohiani, yesterday said the commission intended to gazette a pipeline of 53 eligible and bankable Public-Private Partnership (PPP) projects valued at about $22 billion this year.
He said creating a friendly investment climate could only be achieved by reducing risks and costs of doing business and by securing private property rights, improving governance, fighting corruption, simplifying regulations, and promoting competition.
Among several other achievements, Ohiani said following the inauguration of the ICRC governing board, between 2010 and 2021, the federal government had approved PPP projects valued at over $9 billion, pointing out that the commission had issued 128 Outline Business Case Compliance Certificates which included certified bankable projects to date, to enable them to proceed to procurement phase.
Government targets $39bn from private-public partnerships in two years (Guardian Nigeria)
The Federal Government is hoping to generate about $39 billion from privatisation of public institutions between 2021 and 2022, the Acting Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Michael Ohiani has said.
The ICRC boss, who disclosed this yesterday in Abuja, at the opening of a two-day summit of the Africa Public Private-Partnership Network (AP3N), hinted that in 2021, the ICRC published a pipeline of 51 eligible and bankable PPP projects, worth over $17 billion.
We've put in place adequate policies to reduce money laundering, others (Myjoyonline)
The Governor of the Bank of Ghana, Dr. Ernest Addison, says, there are adequate policies and protections in place to strengthen Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) activities.
Additionally, banks and non-bank financial institutions are encouraged to increase investments in digitisation platforms as well as cyber-security systems to facilitate safe and secure trade transactions through AfCFTA.
Russia/Ukraine war contributing to Nigeria's food insecurity (Daily Trust)
The war in Ukraine is shaking the commodity market and threatening global food security. The Western economic sanctions on Russia are supposed to force the hands of Russia to withdraw from the invasion, but the responses from the old Baltic power shows resilience. The war is a heavy blow to the global economy, mainly low-income African countries, and no one knows when it will end.
The impact on food items is a worry for African households because they spend a high share of their expenditures on food. Precisely, Nigeria spends 57 per cent on food items based on 2019 data. These shortages will likely impact Nigeria’s demand as global prices of these commodities will likely increase, and some food items will be scarce. And let’s not forget how world oil prices affect the Nigerian economy – they say whenever the oil market sneezes, Nigeria catches a cold.
Kenya's Q1 global trade value hits Sh802bn, deficit widens (The Star, Kenya)
Latest government data shows the country's imports value totalled Sh593.2 billion in the first quarter of 2022, a 16.6 per cent increase from Sh508.7 billion the previous year.
Kenya's import bill continues to swell even as export earnings grow slowly, widening the trade deficit between it and its partners.
Sanctions on Zim: A form of economic invasion (The Herald)
The impact of sanctions by the United States (ZIDERA) and European Union on Zimbabwe has been felt by ordinary people across urban, rural and diaspora communities of Zimbabwe.
These illegal and unwarranted sanctions were carefully crafted with the aim of making Zimbabwe a dysfunctional state.
The US and Europe in general have a propensity of investing heavily in institutionally-packaged programmes of economic terror towards African and other countries that are rich in minerals, that are not complying to their demands, to loot their raw materials and other natural resources.
These targeted countries such as Zimbabwe have clearly rejected this structured economic superiority by the US and its allies to continue siphoning natural resources and raw materials laterally for free at the expense of localised beneficiation investment where only finished products are exported.
S'pore, Morocco to cooperate on carbon markets, providing tech aid to Africa (The Straits Times)
Singapore and Morocco have agreed to collaborate on carbon markets and work together to provide technical assistance to governments in Africa.
At the end of a three-day official visit to mark 25 years of bilateral diplomatic ties, Foreign Minister Vivian Balakrishnan said on Monday (July 4) that a memorandum of understanding, which he and Moroccan Foreign Minister Nasser Bourita signed, sets the two countries to cooperate in achieving emission targets.
Zimbabwe to introduce gold coins as local currency tumbles (Engineering News)
The central bank governor John Mangudya said in a statement on Monday that the coins will be available for sale from July 25 in local currency, US dollars and other foreign currencies at a price based on the prevailing international price of gold and the cost of production. The "Mosi-oa-tunya" coin, named after Victoria falls, can be converted into cash and be traded locally and internationally, the central bank said.
DR Congo declares end to latest Ebola outbreak (UN News)
The Democratic Republic of Congo (DRC) has declared the end of its 14th Ebola outbreak after less than three months, the UN World Health Organization (WHO) said on Monday.
“Thanks to the robust response by the national authorities, this outbreak has been brought to an end swiftly with limited transmission of the virus,” said Matshidiso Moeti, WHO Regional Director for Africa.
ECOWAS lifts economic sanctions on Mali -- after six months (TheCable)
In the communique, ECOWAS said while the economic and financial sanctions have been lifted, Mali remains suspended from decision-making within the organisation.
India, Mozambique review ties, exchange views on global developments (Business Standard)
India and Mozambique on Monday reviewed the multi-faceted bilateral relationship including political exchanges, development partnership projects, defence and security cooperation during the second round of Foreign Office Consultations held here.
An External Affairs Ministry release said the two sides also exchanged views on global developments and issues of common interest including cooperation in the United Nations, South African Development Cooperation (SADC)and the African Continental Free Trade Area (AfCFTA).
"During the FOC, both delegations reviewed the multi-faceted bilateral relationship, covering political exchanges, development partnership projects, defence and security cooperation, trade and economic matters, consular issues, and cooperation in areas such as agriculture, sports, health," it said.
Africa
Advancing Investments into Africa: USD$100 million is just one deal in a broader agenda (Social News XYZ)
Canada announced key projects while at the Commonwealth Heads of Government Meeting, including Process Research Ortech's (PRO) mining project in Botswana with investment partners – valued at CAD $129 million (USD $100 million), as announced (https://bit.ly/3Ajg2Oe) by Prime Minister Justin Trudeau.
"This project shows Canada is the partner of choice for local beneficiation, skills development, and job creation across Africa and in Canada, within the context of deeper intra-Africa trade to which Canada has been committed," says Jacques NdoutouMvé, VP of Business Development at Process Research Ortech.
Establishment of African Pharmaceutical Technology Foundation: An innovative approach to transforming Africa's health system (Businessday)
For decades, Africa has relied on other countries to provide for the healthcare needs of its population. Over 70 percent of all the medicine needs on the continent are imported, accounting for about $14 billion per year. With the growing burden of diseases on the continent, particularly non-communicable diseases and pandemics, such as COVID-19, the health systems in Africa have come under an immense strain due to its very limited capacity to produce its own medicines and vaccines.
This critical situation has in the last few years, drawn significant attention and emphasised the need for collaboration among world-leading organisations like the World Health Organisation, the African Union Commission, the World Trade Organization, the African Development Bank, among others, to provide sustainable interventions for Africa’s healthcare industry.
African pharmaceutical companies lack the negotiation capacity to engage with global pharmaceutical companies and are often marginalized and left behind in complex global pharmaceutical innovations. A major contributor to this challenge is the absence of an institution in Africa that supports the practical implementation of Trade Related Intellectual Property Rights (TRIPs) on licensing of proprietary technologies, know-how, and processes. It is to fill this important gap that the African Development Bank has approved the establishment of the African Pharmaceutical Technology Foundation, an innovative institution that will strengthen Africa’s access to the technologies that support the manufacture of medicines, vaccines, and other pharmaceutical products.
AfDB to set up pharmaceutical foundation in Rwanda (The East African)
Rwanda will host the new African Pharmaceutical Technology Foundation, a venture by the African Development Bank (AfDB) that is expected to boost the continent’s access to technology in manufacturing medicines and vaccines.
AfDB said the foundation is crucial to help African pharmaceutical companies better scout for technologies and negotiate with global pharma to facilitate local production of the fundamental health products that take up to $14 billion of Africa’s income annually.
The continent is currently home to about 375 pharmaceutical firms, which produce less than 25 percent of the needed products annually, forcing the countries to import vastly to meet demand.
Afreximbank approves $1 billion facility to boost AfCFTA operations (TODAY)
“The renewal of the US$1 billion facility and the US$10 million grant funding represents resounding entrustment by our Board of Directors of these efforts. These facilities will again be contributing to making a great idea a reality. We thank the AfCFTA Secretariat for the solid partnership that is bringing the aspirations of the AfCFTA within reach.
Pan-African Parliament Appoints Fortune Charumbira New President (Black Star News)
Charumbira was overwhelmingly elected at the just concluded Pan-African Parliament (PAP) Ordinary Session of the Fifth Parliament held in Midrand, South Africa.
In his acceptance speech, Charumbira committed to ensure the full participation of African citizens in the economic development and integration of the continent. The decision also charged the Office of the Legal Counsel of the Union to prepare modalities and conduct the elections of the new Bureau of the Pan-African Parliament.
The visiting delegation met with H.E. Monique Nsanzabaganwa, Deputy Chairperson of the Commission, to discuss the ongoing preparations for the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change. The meeting underlined the significance of the African COP 27 as an opportune moment for Africa to voice its priorities and bring forward its demand with regard to climate change. The meeting commended that Africa will be a cross-cutting theme in all the 11 thematic days planned on the margins of COP 27.
The Deputy Chairperson of the African Union Commission announced the intention to convene a series of meetings and mechanisms to enhance interdepartmental and intergovernmental coordination ahead of COP27 to ensure the most active participation in the upcoming conference, including the preparatory meetings, promoting even further common African interests in climate change, an issue that assumes a special importance for the continent.
Global
Asia and digital neo-mercantilism (East Asia Forum)
Is there an Asian digital regime? There was, though it was closer to a global regime based on neoliberal principles of free trade and globally distributed supply chains in which Asia played a special part. But that order is disintegrating, as nations inside and outside Asia revert to a new form of neo-mercantilism focused on digital technologies. In this new model, national security seeks to displace trade and growth on the agenda.
Neo-mercantilism calls attention to the way trade and investment in technology and national industrial policies are related to national security and the relative power of the state. In contemporary policy dialogues, trade policy, tech policy, foreign policy, military strategy, cybersecurity and industrial policy are distinct areas of expertise. But looking at the US–China conflict as the two nations competing for a dominant role in the global order analytically slots those pieces together. It is a digital neo-mercantilism because technologies such as 5G telecommunications, semiconductors, social media platforms and artificial intelligence capabilities are at the centre of the competition.
The globalised regime that East Asian countries benefited from so greatly is fragmenting into several large geopolitical blocs — the United States, Europe, China and India — resulting in a more bordered space governed by tensions and power plays.
Regional leaders begin two days of summit talks (Jamaica Gleaner)
Caribbean Community (CARICOM) leaders begin their annual summit in earnest on Monday, coinciding with CARICOM Day marking the signing of the Treaty of Chaguaramas that gave birth to the regional integration movement, hoping for fresh perspectives on deepening the 15-member grouping.
CARICOM is going to place much emphasis during this summit on the issue of implementation, a situation that has dogged the regional integration movement since its inception, and as Santohki asked, “Have we as a region advanced functional cooperation, and increased coordination of policies to benefit our people?
CARICOM Secretary General Dr Carla Barnett said the summit was taking place at a time of severe global crisis in three vital areas, namely, food, energy and finance.
How carbon markets use digital technology to track emissions (World Economic Forum)
For decades, carbon markets have been seen as part of the solution to climate change. They have mostly been dominated by the private sector, but this will soon change. More than two thirds of countries are planning to use carbon markets to meet their Nationally Determined Contributions (NDCS) to the Paris Agreement.
Carbon markets help mobilize resources and reduce costs to give countries and companies the space to smooth the low-carbon transition. It is estimated that trading in carbon credits could reduce the cost of implementing NDCs by more than half – by as much as $250 billion by 2030. Over time, carbon markets are expected to become redundant as every country gets to net zero emissions and the need to trade emissions diminishes.
BRICS summit to benefit South Africa with 8 practical outcomes: Chinese envoy (China.org.cn)
Eight practical outcomes, among many highlights, of the recent 14th BRICS Summit will particularly benefit South Africa and the African continent at large, said Chinese Ambassador to South Africa Chen Xiaodong.
According to the ambassador, the BRICS countries reached a digital economy partnership framework and proposed a cooperation initiative on the digital transformation of the manufacturing industry, as many African countries including South Africa attach great importance to digital economy.
Can BRICS become the anti-G7 that Russia and China want it to be? (The Strategist)
While China and Russia would both like the BRICS to become the anti-G7 that rallies the emerging world in opposition to the ‘hegemonic’ West, both India’s Narendra Modi and South Africa’s Cyril Ramaphosa flitted from their screen-based BRICS summit to the Bavarian Alps to participate as observers at the G7 summit, to which they had been invited, along with the leaders of Indonesia and Senegal (which holds the presidency of the Organisation of African Unity).
The trade and investment links between the nations are weak. There has been no real growth in trade between the five members since 2011, and the trade that does take place is mainly the sale of primary products by Brazil, Russia and South Africa to China, and China’s sale of manufactured goods in return. Excluding China, internal BRIC trade is less than 3% of the total exports of Brazil, Russia and India, and 6% for South Africa.
The second-coming of the BRICS (East Asia Forum)
Within the BRICS bloc, Russia has already developed financial architecture to achieve de-dollarisation in collaboration with China and India. After Russia was cut off from the dollar-based global financial system and half its foreign exchange reserves were frozen by the West, Russia called on its BRICS partners to extend the use of national currencies and integrate BRICS payment systems in April 2022.
Like it or not, the BRICS as a global governance architecture representing the Global South is here to stay with an expanded policy agenda. The BRICS may even try to entrench their unique role by developing an alternative global financial system that is not based on the US dollar.
Rising freight rates push up food import costs (The Kathmandu Post)
Between February and May 2022, the Baltic Dry Index—a global benchmark for dry bulk freight rates—increased by 59 percent, according to The War in Ukraine and Its Effects on Maritime Trade Logistics, a report published by the United Nations Conference on Trade and Development (UNCTAD) recently.
The report said that among four economies—high income, upper middle income, lower middle income and low income—lower middle income countries may suffer an additional 4.2 percent increase in consumer food prices.
UNCTAD has made six recommendations regarding maritime transport challenges which include supporting developing countries, especially the most vulnerable economies such as small islands, developing and least developing countries and net food importers.
The importance of financing a sustainable future (Nairametrics)
While climate change may have taken a back seat in a news cycle dominated by COVID 19, war and the cost-of-living crisis, the risks and threats associated with our warming planet remain the biggest long-term threat to our combined economic future.
Banks and financial institutions will be critical to managing that risk and this includes financing of sustainable infrastructure, supporting transition and investing in green innovation. In fact, the banking industry has a responsibility to bridge top-down and bottom-up approaches to net-zero and help the public and private sectors realise the vast opportunities the energy transition and the move to sustainable infrastructure promises.
To achieve net zero across the whole economy, legacy carbon intensive assets and companies will require financing to help them transition to a cleaner future.
Collaboration of G20 countries in handling global food crisis (ANTARA English)
According to the World Food Program, 323 million people in 2022 are at risk of acute food insecurity. The G7 and G20 have a big responsibility to overcome this food crisis
In the last week of June 2022, President Joko Widodo (Jokowi) visited several countries in Europe and the United Arab Emirates to meet leaders of G7 and G20 members, including conflict-stricken nations, Russia and Ukraine.
The president urged countries to act quickly to find concrete solutions to increase food production and to normalize global food and fertilizer supply chains.
The G20 countries must immediately channel funding for increasing food production by providing fertilizer subsidies, assisting farmers, and maintaining stable harvest prices, as well as increasing loan distribution to the agricultural sector, especially farmers with land areas under two hectares.
Up to 90% of governmental websites include cookies of third-party trackers (EurekAlert)
The results reveal that in some countries up to 90% of these websites add third-party tracker cookies without users' consent. This occurs even in countries with strict user privacy laws.
The researchers considered studying the behavior of government websites and their compliance or non-compliance with data protection laws during the COVID-19 pandemic, a time when citizen information was provided through official websites of international organizations and governments. "Our results indicate that official governmental, international organizations' websites and other sites that serve public health information related to COVID-19 are not held to higher standards regarding respecting user privacy than the rest of the web, which is an oxymoron given the push of many of those governments for enforcing GDPR," comments Nikolaos Laoutaris, Research Professor at IMDEA Networks.
A total of 5,500 websites of international organizations, official COVID-19 information and governments of G20 countries were analyzed: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK and USA.
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S. Sudan traders now plan to ditch Mombasa port for Djibouti route (Business Daily)
The Port of Mombasa is staring at a new threat from South Sudan, with fresh clamour to transfer business to the Djibouti route, in what will deny Kenya revenue on 1.1 million tonnes of cargo that the facility handles annually. Mombasa has been the main route for all consignments destined to the landlocked country and South Sudan now says Port of Djibouti is shorter. “We are in talks with Djibouti authorities so that we can connect Djibouti, Ethiopia, and South Sudan to use Djibouti port through Ethiopia,” deputy chairperson for Chamber of Commerce in South Sudan Lado Lukak Legge was quoted saying by the media in Sudan. “Djibouti is near to South Sudan compared to Mombasa port in Kenya and the government of Djibouti is willing to strengthen trade ties with South Sudan and Ethiopia,” he said.
Used car prices jump up to 30pc in three months (Business Daily)
Used car prices in Kenya have jumped by up to 30 percent over the past three months on weak shilling, scarcity of vehicles and rising shipping costs, pushing low-range types such as Vitz above the Sh1.2 million mark.
Buyers are cutting orders and shunning popular Toyota car models in favour of Nissan and Mazda brands due to cost pain. Dealers are facing increased competition from buyers in source markets such as Japan and the UK as automakers have scaled down production owing to shortages of semiconductors used in electronic devices.
Lagos plans new industrial estate to boost investment in MSMEs (Businessday)
A new industrial estate is springing up at Gberigbe, Ikorodu, Lagos, aimed at encouraging more investment in micro, small and medium scale enterprises (MSMEs) in the state, Lola Akande, commissioner for commerce, industry and cooperatives, disclosed on Sunday. The small-scale industrial estate, according to Akande, is coming to complement existing small industrial estates like Isolo, Mushin, and Sabo in Ikorodu, and is a further demonstration of the state government’s resolve to continue to provide the enabling environment for businesses to thrive.
Kenya launches int’l financial center to boost inflow of foreign capital (China.org.cn)
Kenya on Monday launched the Nairobi International Financial Center (NIFC) to help spur the inflow of foreign capital to fund the country’s development agenda. President Uhuru Kenyatta said in a speech read on his behalf by Joseph Kinyua, Head of Public Service that the center seeks to enhance the business environment to enable companies to raise funds for projects, support innovation, and tap into new investments coming into Africa. “The Nairobi International Financial Center has been designed as an efficient and predictable business environment to give more confidence to the large pools of global capital that have been watching our progress but have not yet taken the decision to invest,” Kinyua said.
Kenya, TZ trade crosses Sh100bn as Suluhu marks a year in office (Business Daily)
Annual trade between Kenya and Tanzania crossed the Sh100 billion mark for the first time in President Samia Suluhu’s tenure in office, signaling improved ties between the two neighbouring countries. Fresh official statistics show the value of goods traded between the two countries amounted to Sh107.63 billion in 12 months through March 2022, a 66.86 percent growth over Sh64.51 billion the year before. Kenyan traders spent Sh56.78 billion to truck in goods from Tanzania in the year ended March 2022, according to data collated by the Kenya National Bureau of Statistics (KNBS)That is a 77.92 percent jump of over Sh31.91 billion a year earlier. Exports to Tanzania, on the other hand, bumped 56.03 percent to Sh50.85 billion, the KNBS data shows. Trade balance was in favour of Kenya in prior years.
Central African Republic (CAR) Launches Native Crypto “Sango Coin”, Eyes Blockchain-Driven Economy (Coinspeaker)
The CAR is taking its crypto aspirations up a notch by launching a native digital currency that will be backed by Bitcoin. Central African Republic (CAR) has launched its national crypto “Sango Coin” as part of a push toward the metaverse. According to CAR President Faustin-Archange Touadéra, the country’s national crypto will exist alongside Bitcoin (BTC) as recognized digital currency. Touadéra also stated that Sango Coin would play an integral role in modernizing the infrastructure of the landlocked Central African country, including a planned metaverse project.
EU pledges $1.4bn in climate funding to Nigeria (Engineering News)
The European Union (EU) and development finance institutions will provide $1.4-billion in funding aimed at cutting its reliance on oil. The funds for agriculture, climate and digital projects will help Africa’s largest oil producer, “achieve low carbon, resource efficient and climate resilient development, creating jobs for youth and economic growth,” Samuela Isopi, EU ambassador to Nigeria and the Economic Community of West African States, said at a conference in Lagos.
Kenya signs treaty to establish African medicines agency (The Star, Kenya)
Kenya has become the latest member state of the continental body-Africa Union-to ratify a Treaty that will pave way for the establishment of an African Medicines Agency (AMA).The specialized agency that will help state parties and regional economic communities enhance its capacity to regulate medical products is born out of the Union’s Accord which came into force in November last year. “It will help the parties improve access to quality, safe and efficacious medical in the continent,” the memorandum from the ministry of foreign affairs reads in part.
Trade facilitation: $1.5bn Lekki Deep Seaport’ll be fully automated at take-off –Bello-Koko (Daily Sun)
As the Nigerian Ports Authority (NPA), received the first-ever vessel Zhen Hua 28 to berth at the $1.5bn Lekki Deep Seaport, the Managing Director of the Authority, Mohammed Bello-Koko,has said that the port would be the first to be fully automated in Nigeria when fully operational. Speaking while receiving the vessel, which brought three Ship To Shore (STS) cranes and 10 Rubber Tyred Gantry (RTG) cranes, Bello-Koko disclosed that the successful delivery of the three STS and the 10 RTG cranes was critical to the commencement of operations of the deep seaport.
Lekki Deep Seaport: Changing Nigeria’s Maritime Story (This Day)
Last Friday, the vessel ZHEN HUA 28, a heavy lift carrier, berthed at the Lekki Deep Seaport, Lagos, delivering three Ship to Shore (STS) Cranes and 10 Rubber Tyred Gantries (RTG) that will help in the swift evacuation of cargoes from vessels to the shore. It was a first. These cranes, touted as the most sophisticated port equipment, will be used for the first time in Nigeria at the Lekki Port, putting Nigeria at the forefront of container operations in West Africa.
The Lekki Deep Seaport with almost 17-meter draught constructed by China Habour Engineering firm is a $2 billion investment in the Lagos Free Trade Zone initiated by the Tolaram Group and conceived to be a key game-changer in Nigeria’s dawdling maritime economy. An upbeat President Muhammadu Buhari congratulated the Federal Ministry of Transportation and the Nigerian Ports Authority (NPA) and all stakeholders in the maritime sector over the successful berthing of the first ship at the Deep Seaport. He recalled that his approval of four new seaports in the country, including the Lekki Deep Sea port, was hinged on growing the economy.
Nigerian Shippers’ Council urges FG to promote exportation of non-oil products (Tribune)
The Nigerian Shippers’ Council has called on the Federal Government to provide a suitable environment for the exportation of non-oil products to boost foreign earnings through the African Continental Free Trade Areas (AfCFTA). This was contained in a communique issued at the end of a one-day sensitisation programme organised by NSC South West Zone, held at Abeokuta, last week, towards the promotion of AfCFTA. The communique emphasised the need for the government at the centre to convey on developing the infrastructural capacity to address the challenge of smuggling across the borders. It noted that smuggling activities into the country had continued to affect economic growth.
EU Provides €28M to Improve Liberia Maritime Security (Liberian Daily Observer)
Under the largest EU-funded Support for West African Integrated Maritime Security (SWAIMS) component, implemented by the Camoes I.P., the capacities of the Liberian Coast Guard and related entities to carry out patrolling and evidence collection at sea will be strengthened with the supply of rigid-hull inflatable boats (RHIBS) and relevant training of its personnel.
Africa
Use trade to cushion yourselves, AfCFTA tells African nations (The Citizen)
The African Continental Free Trade Area (AfCFTA) yesterday called on African countries to increase the level of trade among themselves in order to avoid challenges they face during crises. The AU body asked member countries to stop reliance on exporting primary commodities largely to the North, accelerate self-sufficiency and establish regional continental value chains. AfCFTA said fragmentation, smallness of the countries’ economies and lack of industrial capacity contributed to the 18 percent inter Africa trade. AfCFTA secretary general, Mr Wamkele Mene made the statement yesterday when gracing the official opening of the 46th Dar es Salaam International Trade Fair (DITF).Speaking during the event, Mr Mene said when Covid pandemic hit the world, Africa lacked the capacity to manufacture germ killing products, masks and other required tools to fight the pandemic.
At their 134th Meeting held on June 13, 2022, the Board of Directors of African Export-Import Bank (Afreximbank) has renewed their approval of a US$1 billion facility to operationalise the African Continental Free Trade Agreement (AfCFTA) Adjustment Funds. It also approved a Grant Funding in an amount of US$10 million to seed the Base Fund of the AfCFTA Adjustment Funds. Afreximbank and the AfCFTA Secretariat were mandated by the AfCFTA Council of Trade Ministers and the African Union Heads of State and Government to establish and operationalise the AfCFTA Adjustment Funds, which consists of the Base Fund, the General Fund, and the Credit Fund. The Base Fund will be used to mobilise grants to address tariff revenue losses and to support AfCFTA State Parties to implement the various protocols under the AfCFTA. Afreximbank Board also approved a grant funding in an amount of $10 million as seed funding to kick-start the establishment of the Base Fund. The General Fund will be used to mobilise concessional funding, while the Credit Fund will be used to mobilise commercial funding that will be used to support the public and private sector including small and medium enterprises (SMEs), youth and women to adjust to the new trading environment arising from the AfCFTA.
Small and medium-sized enterprises (SMEs) form the backbone of the African economy, representing more than 90% of businesses and employing about 60% of workers, many of whom are women and youth. Despite the significant role which SMEs play in the development of African economies, they have yet to be fully integrated into the regional value chains system and in turn the continental trading system. It is against this backdrop, as Commemoration of the International Micro, Small and Medium Enterprise (MSME) Day, the First Edition of African Union Small and Medium Enterprises (SME) Annual Forum kicked off on 27 June 2022 in Cairo, Egypt under the theme “Economic Empowerment of SMEs, Women and Youth Entrepreneurs to Realize Africa’s Industrialization in the Context of the Integrated Market”.
It is in this context that the African Union Commission’s novice Women and Youth Financial and Economic Inclusion (WYFEI) 2030 Initiative proposes a set of multi-level innovative, resilient and inclusive recovery solutions in the form of a10-point agenda that will assist women and young entrepreneurs to climb the ladder of change towards financial and economic inclusion. The 10- point agenda includes interventions at the personal level, systems level and environmental level which call for personal income enhancement, financial sector innovation and macroeconomic policy reform, respectively,” said Dr. Monique Nsanzabaganwa.
How Poorly Negotiated Trade Agreements Fuel Illicit Financial Flows, Tax Evasion (The Whistler Newspaper)
In a 2020 Economic Development in Africa Report released by the UN Conference on Trade and Development (UNCTAD), Africa lost about $88.6bn or 3.7 per cent of its Gross Domestic Product, to illicit financial flows. Illicit financial flows are multi-dimensional, comprising several different kinds of activities, including flows originating from illicit activities, illicit transactions to transfer funds that have a legal origin, and flows stemming from legal activity being used in an illegal way. The $88.6bn lost in Africa to IFFs is huge when considered from the standpoint that the continent is home to some of the poorest countries in the world. While governance is supposed to be at the heart of addressing development challenges on the continent, the story is different in some countries in Africa because of lack of transparency and accountability which had undermined social, economic and political progress at many levels.
The Former President of South Africa, Thabo Mbeki had identified the three principal challenges to confront in addressing IFFs. They are building capacity to combat illicit financial flows at national and continental levels; establishing a global coherence on agreed actions between African countries with a common position on the Mbeki Report; and developing global mechanisms to ensure adherence to implementation of whatever is agreed as solution.
Launch of the Africa SDGs Progress Dashboard (UNECA)
The African Centre for Statistics of the United Nations Economic Commission for Africa is pleased to announce the launch of the Africa SDGs Progress Dashboard. The tool is developed to assist evidence-based policy making in Africa on the Global Sustainable Development Goals and the continental Agenda 2063, “The Africa We Want”. It provides evidence on how much progress has been made on each of the Sustainable Development Goals, Targets, and Indicators and how likely they are to be achieved by 2030 based on the current pace of progress. The results are provided at continental, subregional and country level.
African Heads of State to Convene to Champion a Strong Start to IDA20 Implementation for a Robust Recovery (World Bank)
The Republic of Senegal and the World Bank Group will host a high-level meeting on July 7, 2022, with African leaders to leverage the powerful voice of African countries in implementing the IDA20 program whose financing and policy package was successfully endorsed by the Heads of State a year earlier at a similar summit in Abidjan. The cycle for the twentieth replenishment of the International Development Association (IDA20) will run from July 1, 2022, to June 30, 2025.The meeting, hosted by H.E President Macky Sall of Senegal, will call on leaders and implementers to fully tap into IDA20, underpinned by World Bank global expertise and country presence, to deliver lasting results to African citizens.
Africa has the most number of countries (39 of 74) benefiting from IDA20 whose theme is Building Back Better from the Crisis: Towards a Green, Resilient, and Inclusive Future. African countries have been hit hard by multiple global crises including climate change, the COVID-19 pandemic, growing levels of insecurity, and more recently the crisis in Ukraine. The World Bank Group stands ready to partner with Governments as they implement policies for building back better and for accelerating the development and economic transformation of the continent.
A financing facility associated with the African Development Bank’s Desert to Power Initiative was featured at a side event held on the margins of the just-ended Africa Energy Forum in Brussels, Belgium. The event, dubbed “Accelerating private sector investments in the G5 Sahel - leveraging the Desert to Power Financing Facility,” was held on 23 June, to engage the private sector on the financial resources needed for the innovative Desert to Power G5 Sahel Financing Facility, which forms part of the broader energy Initiative.
The ending cotton season has been a lot of things, but stable and consistent are not really among them, ICAC says in its latest update. However, production and consumption in the final month of the 2021/22 season are virtually unchanged from the numbers in June, it notes.
ICAC says the drastic increase in fuel and energy costs has had a direct impact on fertiliser prices and availability on the cotton season.
Worse, there are growing concerns that the world will experience multiple famines as a result of the conflict in Eastern Europe, which spells trouble for everyone but especially African nations.
There is, however, some good news, ICAC says. Arica has made gains in developing The African Continental Free Trade Area (AfCFTA), which went into effect on 30 May 2019, and the agreement has the potential to facilitate the movement of commodities across borders with the elimination of tariffs on most goods and services. The ICAC has been actively engaged in education and training efforts in several African countries, including the concept of regenerative agriculture. Those projects are longer-term but add significantly to the African cotton industry’s outlook in the coming years, it notes.
East African Crude Oil Pipeline praised (Independent)
The East African Crude Oil Pipeline (EACOP) represents a critical solution to making energy poverty history in Africa by 2030, say experts led by says NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC). In addition to transporting much-needed oil across the region and improving energy security by connecting hydrocarbon-rich basins in Uganda with both its regional and international destinations, the pipeline will be instrumental for job creation, local community empowerment and wider socioeconomic growth. However, despite its significance, western environmentalist groups are demanding the abandonment of the project, citing environmental concerns. But at what point does Africa’s energy needs and the wellbeing of the people take precedence over sensationalist eco-socialism?
“Stop disrupting Africa’s development and let’s use the EACOP and every other oil and gas project on the continent to drive Africa into a new era of energy and economic success,” says Ayuk.
Afreximbank Welcomes Algeria as its 52nd Member State (Afreximbank)
African Export-Import Bank (Afreximbank) has announced that The People’s Democratic Republic of Algeria (Algeria) has joined the Bank as a Member State. That brings the membership of Afreximbank to 52 out of the 55 African Union member States. Algeria’s accession to the agreement establishing Afreximbank was formalised on 8 June 2022 by Presidential Decree No. 22-212. The subscription of the country to the shares of Afreximbank as part of its membership in the institution was also authorised by Presidential Decree n°22-222 of 14 June 2022. Algeria becomes a Class A shareholder in the Bank and will be represented by the Algerian Ministry of Finance. Algeria has the 9th largest population and the 4th largest economy in Africa. It is also a member of the African Union, the African Continental Free Trade Area (AfCFTA) and the Greater Arab Trade Area.
Vibrant Validation Session for the Women & Youth Financial & Economic Inclusion (WYFEI) 2030 (AU)
The Women, Gender, and Youth Directorate (WGYD) held a validation session with partners and stakeholders in Cairo, Egypt on 28th June 2022. The session sought to validate the draft strategy document of the WYFEI 2030 initiative as part of a series of consultations ahead of its finalization and launch on 22 July 2022. The validation session was delivered in a hybrid format and was attended by over 50 participants across a broad spectrum of economic inclusion sectors, including; development finance institutions, international non-governmental organizations, women’s economic empowerment movements, civil society organizations, and the private banking sector.
Expected key outcome, beside the validation of the WYFEI 2030 Draft Strategy Document; will be WYFEI 2030 Cluster Member recruitment drive.
Global economy
Members mark 5th anniversary of Trade Facilitation Agreement, share experiences on impact (WTO)
In her welcoming remarks to the event, Deputy Director-General Anabel González highlighted that the TFA had “added an entirely novel dimension to multilateral trade cooperation: the need to work together to alleviate frictions caused by trade procedures and processes.” With the entry into force of the TFA, trade facilitation had joined trade opening as an essential element of national, regional and global trade policy reform.
Maritime Trade Disrupted: The war in Ukraine and its effects on maritime trade logistics (UNCTAD)
The war in the Ukraine is stifling trade and logistics of Ukraine and the Black Sea region. The search for alternate trade routes for Ukrainian goods has rapidly increased the demands on land and maritime transport infrastructure and services. For Ukraine’s trading partners, many commodities now have to be sourced from further away. This has increased global vessel demand and the cost of shipping around the world. Grains are of particular concern given the leading role of the Russian Federation and Ukraine in agrifood markets, and its nexus to food security and poverty reduction.
Rare period of stability in an up-and-down cotton season (just-style.com)
As the 2021/22 cotton season comes to a close, the industry is seeing a rare period of stability but the International Cotton Advisory Committee (ICAC) warns things are not expected to remain stable for long, with issues from the pandemic and conflict in Eastern Europe still impacting the market.
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Local trade news
Trade Statistics for May 2022 | South African Revenue Service
The South African Revenue Service (SARS) today releases trade statistics for May 2022 recording a preliminary trade balance surplus of R28.35 billion. The R28.35 billion preliminary trade balance surplus for May 2022 is attributable to exports of R179.46 billion and imports of R151.11 billion.
South Africa imported record volumes of steel in 2021, new report shows (Engineering News)
At close to 1.7-million tonnes, South Africa imported record volumes of primary steel in 2021, constituting about one-third of all steel used in the country, a new Steel Report published by the South African Iron and Steel Institute (SAISI) confirms. The report, which is the inaugural edition of what will be a yearly publication, concludes that South African apparent steel consumption, which recovered by “an astonishing 36%” following the Covid lockdown, is now substantially propped-up by imported primary steel products. Written by SAISI secretary-general Charles Dednam, the report notes that South Africa, which was historically a steel exporter, became a net importer at the beginning of 2020. It also notes that the rise in imports has occurred notwithstanding the “much-contested trade measures introduced to curb the influx of foreign steel to the country”. Price and availability have been given as reasons for the surge in imports.
South Africa to appeal against EU decision to reintroduce import regulations on oranges (FreshFruitPortal.com)
The South African Citrus Growers’ Association (CGA) has announced it will appeal against the EU Standing Committee on Plant, Animal, Food and Feed’s decision to reintroduce new import regulations, regarding the entry of the False Codling Moth (FCM) pest.
Firstly, the CGA highlighted that “South Africa operates a sophisticated Systems Approach for FCM Risk Management, which already includes different cold treatment protocols”, indicating that the new regulations were not “necessary”. Secondly, the association hinted that the measures were unjustified, arguing that “there is no crisis with regard to FCM interceptions relating to citrus imports”, given that there has been a decrease in notified interceptions over the past three years, the length of time that the FCM has been a quarantine pest. Thirdly, the CGA said that “the proposed measures would severely impact SA exports to the EU”, insinuating that they are disproportionate. “There are clearly less trade restrictive and equally effective measures available such as the continuation of the existing Systems Approach, which has been further strengthened ahead of the 2022 season,” it added.
Lastly, the South African association implied that the EU regulations were not “feasible”, as “86.6 percent of South African oranges exported to the EU in 2021 were loaded under Codes specified in the Risk Management system that do not require pre-cooling.”
Digital transformation of manufacturing expected to improve efficiencies (Engineering News)
The transformation of manufacturing processes and operations into connected, integrated, automated and smart operations, collectively known as Industry 4.0, will reduce the amount of low skilled positions but also create new skilled positions, assurance and advisory services multinational PwC South Africa’s ‘Insights into the I4.0 maturity of SA Manufacturing’ report has found. The report surveyed representatives across nine industrial sectors in South Africa during April and May and found that 35% of respondents predicted that throughput would increase between 10% to 20% owing to Industry 4.0 investments made over five years, and enable them to see a return on their investments.
Kenya requires mandatory recordal of IP rights for imported goods (Inventa International)
Kenya has taken recent measures regarding anti-counterfeiting to be implemented by the Anti-Counterfeiting Authority (ACA). The ACA’s Public Notice (No.1/2022), issued on 26 April 2022, established that all IP rights for goods imported into Kenya must be recorded with the ACA starting July 1, 2022. This applies to all imported goods freed of where the IP right is registered. The second Public Notice (No.2/2022) states the deadline extension to submit a mandatory record to 1 January 2023. Not complying with the legislation can lead to legal consequences.
Application submissions for an ACA recordal process require detailed information about the IP rights owner, subsidiary, or foreign company which uses the IP rights abroad, the goods, and the place where they are manufactured. Samples or photographs of goods to be imported and certified copies of the respective IP registration certificates must also be added.
The record will remain valid for one year, after which period the IP owner will be able to request its renewal. This is a clear progress in the country to combat counterfeit goods and illicit trade in the country.
World Bank faults Kenya’s ‘ad hoc’ disaster budgets (Business Daily)
The World Bank has urged Kenya to review its budgeting for disaster and emergency management citing unsustainable ad hoc tweaks in the expenditure plans of ministries and State departments and agencies(MDAs) whenever such mishaps occurred. The multilateral lender said the Covid-19 pandemic and floods encountered in the country in the 2019/20 financial year exposed deep weaknesses in the current trend where the State heavily relies on reallocating the budgets of MDAs to tackle disasters.
“The financial year2019/20 revealed some weaknesses in the Kenyan ability to effectively finance a disaster response with poor contingency planning and an overreliance on reallocations,” the World Bank said.
Official data shows that in the financial year 2019/20 alone, the Treasury reallocated approximately Sh50 billion from the budgets of the various MDAs towards disaster response compared to the initial total provision of Sh5 billion for contingencies.
“Although reallocations per se are a normal instrument used for financing emergencies and although the level of reallocations might be expected given the size of the Covid-19 crisis, the Kenyan experience reveals delays and, in some instances, inaccurate predictions, which led to numerous corrections of estimates that affected crucial votes,” the World Bank said.
Kenya, UK business lobby sign deal to fight corruption (The Standard)
The government has signed a memorandum of understanding (MoU) with the British Chamber of Commerce Kenya (BCCK) to promote business climate reforms, including the fight against corruption. BCCK’s Business Integrity Initiative and the Department of Business Reforms and Transformation (DBRT) under the Ministry of East African Community (EAC) and Regional Development will establish a joint programme to identify and recommend areas for reform, host public-private workshops, and build private sector capacity. Speaking during the signing of the MoU, Principal Secretary in the State Department for EAC Kevit Desai said business integrity is the foundation of international trade. “While corruption is a global issue, it is a concern that has been raised in our discussions with businesses and international investors. This MoU will create a platform to reaffirm Kenya’s commitment to strengthening the business climate,” he said.
Today, Administrator Samantha Power launched a groundbreaking new $30 million, subject to appropriations, trade and investment program, called TradeBoost Zambia, that will advance the U.S. government’s Prosper Africa and Feed the Future initiatives. TradeBoost is among the first projects to be launched as part of USAID’s new continent-wide Africa Trade and Investment program, the Agency’s flagship effort in support of Prosper Africa. TradeBoost will amplify market intelligence, increase investment in Zambian businesses, and direct targeted trade facilitation support to Zambian businesses to reach regional and international markets. TradeBoost prioritizes locally-led development with all sub-contracts and grants going to local partners. The program will focus on businesses led by women and young people who invest in climate smart production.
As part of this new trade and investment program, Administrator Power announced two private sector partnerships that will enhance Zambia’s ability to grow food for people across Africa.
Seychelles’ economic recovery in 2021 vastly outperformed projections, fueled by a faster-than-expected rebound of the tourism sector. The recovery is expected to continue in 2022 with projected real GDP growth of 7.1 percent as the tourism sector shows resilience to COVID-19 waves and geopolitical tensions. The recovery has been accompanied by a significant fiscal overperformance.
The Seychellois economy continues to face significant risks. The economic outlook, while positive, remains subject to external risks including a further surge of commodity prices and fewer tourist arrivals. Higher nonperforming loans in the banking sector could emerge as COVID-support and forbearance measures are being withdrawn. The country remains vulnerable to climate change.”
Following the Executive Board discussion, Mr. Li , Deputy Managing Director and Acting Chair, made the following statement: “Fueled by a fast rebound of the tourism sector, Seychelles’ economic recovery in 2021 outperformed expectations, with stronger-than-expected growth and fiscal outturns. The tourism sector has shown resilience to COVID-19 waves and geopolitical tensions. The recovery has been accompanied by a significant fiscal overperformance, creating fiscal space to address current challenges. The economic outlook, while positive, remains subject to external risks including from spillovers of the war in Ukraine, a further surge of commodity prices and fewer tourist arrivals.
The DRC’s macroeconomic environment has improved since the last Article IV consultation in 2019. The authorities have adopted prudent macroeconomic policies, most visibly by halting central bank financing to the government. Despite the COVID-19 pandemic, considerable macroeconomic gains were achieved in 2021 and reform momentum under the ECF arrangement was sustained. The economy rebounded more than envisaged with growth at 6.2 percent, supported by non-extractive growth. Consumer Price Index (CPI) inflation declined to 5.3 percent year-on-year, accompanied by a stable exchange rate as the central bank stopped providing financing to the government. The fiscal outturn was better than projected, as higher fiscal revenues and external financing provided space for additional spending, mostly on investment although domestic arrears accumulated. The external position improved, and gross international reserves increased to US$3 billion at end 2021. However, despite excess liquidity, private sector credit remains subdued at 7 percent of the GDP and the banking sector faces vulnerabilities. Fragility continues to hinder inclusive growth as 72.5 percent of the population is in poverty and access to basic public services is severely under-provisioned.
In 2022, the DRC’s economy is facing some headwinds from the war in Ukraine, which has increased the cost of living and the fiscal costs associated with the fuel subsidy. Despite the deteriorating global economic prospects, the outlook remains favorable sustained by improved mineral prices. Growth has been revised down to 6.1 percent (6.4 percent previously) and inflation revised up to 11 percent due to imported prices. The domestic fiscal deficit (program target) is projected to widen by 0.4 percentage points of GDP, to 1.4 percent of GDP as the higher mining revenues will not fully compensate for the increased fiscal costs associated with the fuel subsidy and higher domestically financed investment for priority social infrastructure projects.
African trade and development news
African SMEs yet to be fully integrated into the regional value chains system (News Ghana)
The first African Union (AU) SME Annual Forum is aimed at realizing Africa’s industrialization in the context of the integrated market, experts reveal. And they also add that Small and medium-sized enterprises (SMEs) form the backbone of the African economy, representing more than 90% of businesses and employing about 60% of workers, many of whom are women and youth.
But despite the significant role which SMEs play in the development of African economies, they have yet to be fully integrated into the regional value chains system and in turn the continental trading system.
It is against this backdrop, as Commemoration of the International Micro, Small and Medium Enterprise (MSME) Day, the First Edition of African Union Small and Medium Enterprises (SME) Annual Forum kicked off on 27 June 2022 in Cairo, Egypt under the theme “Economic Empowerment of SMEs, Women and Youth Entrepreneurs to Realize Africa’s Industrialization in the Context of the Integrated Market”.
SACU summit to find solutions to the impact of COVID-19: Patel (SABC News)
Trade, Industry and Competition Minister Ebrahim Patel says five Southern African Development Community (SADC) regional leaders will use the Seventh Southern Customs Union (SACU) summit to find solutions to the impact of the COVID-19 pandemic and the Russia-Ukraine conflict on the regional bloc. He was speaking to the South African Broadcasting Corporation (SABC) ahead of the one-day gathering scheduled for Gaborone, Botswana later on Thursday morning.
“SACU is the place where we put together a common position on trade for the rest of the African continent. More than a quarter million jobs in South Africa are dependent on what we are selling to the rest of the African continent.”
“So, the African trade is a very big part of our job space, our economic growth and what we generate in a way of taxes that we use for housing, health care, education and so on and so our focus has been on why the inability of African countries to trade with each other. Parliament has ratified the African Continental Free Trade Area and this year we seek to complete the offer to each other and in that way help to create more jobs,” says Patel.
150 Trucks Cross Katuna-Gatuna One Stop Border Post Daily (EABC)
Over 150 transit trucks cross over the Katuna-Gatuna One Stop Border Post (OSBP) daily following the reopening of the border. This was revealed during the EABC-TMEA Public Private Dialogue with Trade Facilitation Agencies at the Katuna-Gatuna OSBP. Mr. Peter Gikwiyakave, Regional Manager, Uganda Revenue Authority said “800 people cross the Katuna border.”
The Gatuna Katuna OSBP currently only facilitates movement of transit cargo. Traders pleaded for Ugandan exports to be allowed to enter Rwanda and vice versa for bilateral trade ties to flourish better. Transporters called for harmonization of road tolls citing Rwanda charges a flat fee of USD.76 while Uganda charges USD 10 per 100 mileages.
Ms. Akaukwasa Miria, Chairperson of Katuna Women Cross Border Traders appreciated that a trade information desk is instituted at the border. She stated that women need to be sensitized on the EAC Simplified Trade Regime and small cross border traders should be allowed to do business at the Gatuna-Katuna OSBP.
Investors should be heartened by Africa’s economic resilience in a trying global environment (The Africa Report)
This can extend to Africa, and there is an air of scepticism about Africa’s economic recovery and long-term growth prospects. While not as severely impacted as the West and other developed economies, Africa’s growth was dented by Covid-19 as trade flows stuttered and tourism stalled. This has prompted the IMF to predict that Sub-Saharan Africa will grow at just 3.8% in 2022, much lower than the average performance since 2000.
However, there remains much cause for optimism, not just over the next decade, but in the second half of 2022. This positive outlook lies foremost in recognising that the pandemic has not impaired the continent’s main structural drivers of growth. Africa’s youthful population, ongoing urbanisation and development of its financial services, technology and power infrastructure continue to serve as the cornerstones for its ascent.
In the short term, the continent has shown promising signs of organic recovery from the pandemic which will be boosted further when China, Africa’s biggest trading partner, reengages. Meanwhile, Africa’s commodity markets, the backbone of many of the continent’s largest economies, are relatively buoyant and countering some of the headwinds in the international environment.
Africa’s collective strength is its diverse economic backdrop; growth is multi-speed and with varying primary drivers.
there remain at least two major headwinds that will inhibit more spirited near-term growth across the continent. The first of these is global monetary tightening which will curtail capital flows to the continent and elevate risk aversion. The second is the impact of the war in Ukraine. While most African countries have less than 2% of their overall international trade with Russia and Ukraine, there are some notable exceptions, such as Egypt and Malawi. Moreover, for the vast majority of Africa, more than half of these countries’ wheat supplies come from Russia and Ukraine, with Benin and Somalia completely reliant on these two countries.
AFRICA: A new financial innovation centre for renewable energy (AFRIK21)
The new partnership involves the Opec Fund for International Development (OFID), the United Nations Capital Development Fund (UNCDF) and the Sustainable Energy for All Initiative (SEforALL). These organisations want to set up a financial innovation centre to support access to renewable energy in developing countries, many of which are in Africa. The centre, which is due to be launched at COP27 in Sharm el-Sheikh, Egypt, in November 2022, will identify innovative solutions to the development challenges of partner countries, including gaps in green finance and private sector investment. It will also promote innovative business models and financing instruments to find, unlock, de-risk and scale up private sector investment in energy access.
“Designed as an end-to-end global political and financial platform, the Hub will harness the power of financial innovation to ensure maximum leverage. Every dollar of sovereign finance is expected to attract $4 of green and sustainable capital into projects in the medium term,” says UNCDF. The centre is being set up at a time when electricity access in Africa remains low. According to the African Development Bank (AfDB), 600 million Africans still do not have access to electricity.
African countries must take cyber-security measures seriously—AGA-Africa (Myjoyonline)
Participants at the Attorney General Alliance (AGA) Africa have stressed the need for African countries to tighten cyber-security measures as African nations open their borders for the implementation of the African Continental Free Trade Agreement (AfCFTA). This, they say is necessary to block trans-national fraud in the banking sector estimated to be around 1.4 trillion dollars in 2018. Speaking at the AGA Annual Conference in Accra, the Executive Director of the Alliance, Karen White, said African countries stand to lose the most if cyber fraud is ignored. “Recent developments like the ratification of the AfCFTA are commendable—facilitating the free movement of people and goods across the continent. They also signal the ease with which trans-national criminals can expand the scope of their operations,” she said.
How Micro Businesses are Overcoming Challenges of Doing Business in Rural Areas (TechEconomy)
Contrary to the erroneous belief in some quarters that doing business in rural areas is immune from the common challenges that businesses generally face, reality is that micro business owners in underserved areas also have peculiar challenges they go through. Some of these challenges include difficulty in accessing goods on time. Dearth of infrastructure such as good road network, long distance to the market and lack of adequate transportation system to move purchased goods are among the factors that constitute access barriers to goods and commodities. As a result, many owners of micro businesses spend longer time or wait for days and weeks to receive inventory or restock, while oftentimes they experience supply shortages.
The delay or disruption in supply also affects the end-users/consumers, who are unable to purchase things they need as at when due.
However, the increasing impact of digital technology that is rapidly transforming every segment of our socio-economic ecosystem is also changing the narrative positively for businesses including retail trade.
The digitalisation of the economy, which is enabling e-commerce platforms in the B2C segment and lately the B2B segment, has had and continues to have great impact on the manufacturing, distribution and retail value chains.
Hackers now shifting focus to small traders (Business Daily)
It is always thought cybercriminals target big companies in order to demand ransom running into millions. However, recent trends show that hackers are shifting their focus to small online businesses mainly because they are vulnerable.
“Cybercriminals are now targeting small businesses more as they have realized that these enterprises do believe they would be exposed due to their comparatively low turnovers until they lose their data and payments are compromised,” Agora Group co-founder and chief executive officer (CEO) Hadi Maeleb said.
Speaking during the inaugural Africa Cybersecurity Congress held in Nairobi, Mr Maeleb said the threats to online businesses were growing at an exponential rate as more than 90 percent of business owners are unaware that their enterprises are at risk.
Whereas these measures accelerated the adoption of digital platforms, they also increased vulnerability such as data breaches, ransomware, cyber bullying, harassment, data breaches, and phishing attacks. With more than 1 million local businesses running online, Mr Maeleb said this creates an attractive environment for threat actors.
Rural industrialisation gathers steam (The Herald)
President Mnangagwa yesterday commissioned a US$20 million edible oil refinery plant in Mahusekwa Mashonaland East, where he said global shocks that have caused food shortages and related challenges in many countries have driven Zimbabwe’s desire to produce adequate food for its citizens. The President implored farmers to take advantage of the National Enhanced Agricultural Productivity Scheme (NEAPS) and the Second Republic’s rural industrialisation drive and access inputs for strategic crops whose production is being supported by the Government through accelerating the construction of dams and existing schemes to increase size of land under irrigation.
President Mnangagwa has declared that his administration will drive rural industrialisation, which will see industrial activity being launched in rural areas based on factor endowments in each rural space. Such endowments become the definers and drivers of the industrial activity envisaged in any one area. The objective of rural industrialisation is to stem rural-urban migration. Government has already laid the preparatory groundwork for the transformation through, among many other things, establishing tertiary institutions, including vocational training centres in rural areas and intensifying the rural electrification programme.
Green Energy’s Dirty Secret: Its Hunger for African Resources (Foreign Policy)
In June, the European Parliament voted to effectively outlaw the sale of new cars using gasoline or diesel by 2035. If approved by the European Union, the move would revolutionize the world’s third-largest auto market after China and the United States—and hasten the global transformation of the entire automotive industry to battery technology. What the parliamentarians didn’t mention: The world cannot mine and refine the vast amounts of minerals that go into batteries—lithium, nickel, cobalt, manganese, palladium, and others—at anywhere close to the scale for this rapid transition to electric vehicles (EVs) to occur. The dirty secret of the green revolution is its insatiable hunger for resources from Africa and elsewhere that are produced using some of the world’s dirtiest technologies. What’s more, the accelerated shift to batteries now threatens to replicate one of the most destructive dynamics in global economic history: the systematic extraction of raw commodities from the global south in a way that made developed countries unimaginably rich while leaving a trail of environmental degradation, human rights violations, and semipermanent underdevelopment all across the developing world.
A key issue is cross-border infrastructure such as railways and access to seaports. This is not just a prerequisite for bringing battery resources to market. The dearth of cross-border infrastructure in much of Africa also means that efforts to integrate the continent’s economies have never really taken off, even though the African Continental Free Trade Area, created in 2018, is the world’s largest free trade zone, at least on paper, encompassing 43 states. Here, China is far ahead, with rail and port infrastructure funded and built by Chinese entities transforming African logistics. In 2019, the Center for Strategic and International Studies estimated that 46 sub-Saharan African ports were built, expanded, or operated by Chinese entities.
Renewed calls for SMBC to halt East African pipeline support (Global Trade Review)
A group of environmental organisations and NGOs are putting pressure on Japanese lender SMBC to end its involvement in a controversial US$5bn East African crude oil pipeline, ahead of a shareholder meeting this week. In a letter sent to SMBC’s board this month, the campaign groups warn the bank’s role in the East African Crude Oil Pipeline (EACOP) is inconsistent with its own environmental and social pledges, leaving it open to accusations of “greenwashing” and possible legal action.
AAFA on AGOA: Africa ‘Logical’ Choice for Brands Fleeing China (Sourcing Journal)
The American Apparel and Footwear Association (AAFA) urged the office of the United States Trade Representative (USTR) to renew the African Growth and Opportunity Act (AGOA), as U.S. brands and retailers look to diversify sourcing. While the trade agreement’s expiration is still three years away, the Washington, D.C.-based trade group believes that establishing long-term, forward-looking policy will help brands commit to new sourcing strategies with the 36 AGOA-eligible sub-Saharan African nations. “U.S. investment in the region already faces mounting uncertainty” in the absence of a decision on AGOA’s renewal, AAFA vice president of trade and customs policy Beth Hughes wrote to Trade Policy Staff Committee chair William Shpiece last week.
“Companies are poised to diversify out of China, and Africa is a logical place for many of them,” she added. Brands are looking to work with Free Trade Agreement (FTA) countries to counteract ongoing supply chain challenges and tensions with China.
The AGOA region’s growing textile and garment sector has gained business from American brands in recent years, but the legislation’s “on-again, off-again nature” has eroded U.S. importers’ interest in utilizing its benefits, according to Hughes. While its 10-year renewal in 2015 was an “important first step,” she said officials should extend the agreement’s active period to “sustain the kind of long-term trade and investment that is needed to alter centuries of underdevelopment.” Should AGOA be renewed for a decade or longer, “companies would have the necessary certainty and timeframe they need to grow a vertical, responsible, and competitive industry in Africa up to and past 2025,” Hughes said.
Africa’s dream of feeding China hits hard reality (CNBC Africa)
Taking advantage of Beijing’s deeper focus on trade with African countries to help reduce gaping deficits, Kenya struck an export deal with China for fresh avocados in January after years of lobbying for market access. Six months later, no shipments have left, Kenya’s avocado society, the East African country’s plant health inspectorate and Kakuzi KUKZ.NR told Reuters.
“You can actually have a market, but if you can’t meet the standards, you can’t take advantage,” said Stephen Karingi, head of trade at the United Nations Economic Commission for Africa. Reuters spoke to nine officials and businesses across Africa who said Chinese red tape and a reluctance to strike broad trade deals were undermining Beijing’s plan to boost African imports.
Ramping up agricultural exports, however, is one of the few options many African countries have to rebalance their trade relationships with China and earn the hard currency they need to service mountains of debt, much of it owed to Beijing.
For decades, China has loaned billions of dollars to Africa to build railroads, power plants and highways as it deepened ties with the continent while extracting minerals and oil. That has helped China-Africa trade balloon 24-fold over the past two decades and two-way trade hit a record $254 billion last year despite the turmoil of the global pandemic. But for $148 billion of Chinese goods shipped to Africa in 2021, China imported only $106 billion and five resource-rich nations – Angola, Congo Republic, Democratic Republic of Congo South Africa and Zambia – accounted for $75 billion of that.
US President Biden backs African Development Bank’s plan to feed Africa (AfDB)
The United States has announced support for the African Development Bank’s initiative to significantly increase food production in Africa to avert the looming food crisis caused by the Russia-Ukraine war. The Bank Group’s $1.5 billion African Emergency Food Production Facility, approved by its Board of Directors in May, will provide 20 million smallholder farmers with climate-smart, certified wheat, maize, soy and other staple crop seeds, as well as more affordable fertilizer and extension services. This will allow Africa to rapidly produce over the next four farming seasons an additional 38 million tons of food worth $12 billion. At a summit of G7 leaders on Tuesday, U.S. President Joseph Biden and fellow G7 leaders announced a contribution of $4.5 billion to address global food security, with the United States meeting 50% of that commitment. The Biden administration announced that it will invest $760 million of its contribution to combat the effects of high food, fuel, and war-driven fertilizer prices in those countries that need this support most.
Global economy news
New joint publication highlights benefits of paperless trade (WTO)
“The Cross-Border Paperless Trade Toolkit that we are launching today responds to growing demands for practical and solutions-oriented instruments that can harness trade digitalization for easier, less costly and more inclusive global trade,” WTO Deputy Director-General Anabel Gonzalez said at the launch of the report. “Paperless trade specifically — and trade facilitation more generally — are also highly relevant in the broader context of the supply chain disruptions that we have been witnessing over the past two years,” she added. “Paperless trade can be a very powerful tool to reduce trade costs, which is key to making economies more efficient, global trade more inclusive, and supply chains more resilient,” DDG Gonzalez concluded.
Ramaphosa warns G7 leaders of new aim for Covid patent... (Daily Maverick)
After winning what he called a success on Covid vaccines, President Cyril Ramaphosa has warned the leaders of the G7 rich countries that he will remain on their case to support another “TRIPS waiver” – to suspend the intellectual property rights of international pharmaceutical companies over their Covid therapeutics and diagnostics so that developing countries could manufacture these without the authorisation of the patent holders. Ramaphosa said South Africa, India and other countries were “celebrating the success of achieving a TRIPS waiver” on 17 June 2022 when the World Trade Organization (WTO) agreed to suspend patent rights of the pharma companies for their Covid vaccines. This waiver has received mixed reviews, with some health rights activists dismissing it as a “very bad deal”, while others in the South African pharma industry welcomed it as “balanced” but also warned that many bridges still had to be crossed before it could be practically implemented in Africa.
Ramaphosa reminded G7 leaders at their just-completed summit in Schloss Elmau, Germany that some of them had at first resisted the waiver of these Covid vaccine patent rights – which are governed by the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). However, “we finally got them to concede that there should be a waiver”, Ramaphosa told the government information service, GCIS. But he added that he had warned the G7 leaders at the summit that the WTO concession on vaccines should be just the foundation for further concessions on Covid-19 therapeutics and diagnostics, which the WTO will decide on in six months.
UN Ocean Conference opens with call for urgent action to tackle ocean emergency (United Nations)
With climate change, biodiversity loss and pollution exacting a devastating toll on the world’s ocean — critical to food security, economic growth and the environment — the 2022 UN Ocean Conference opened in Lisbon, Portugal today with a call for a new chapter of ocean action driven by science, technology and innovation. “Sadly, we have taken the ocean for granted, and today we face what I would call an “Ocean Emergency,” United Nations Secretary-General António Guterres told delegates at the opening of the Conference. “We must turn the tide. A healthy and productive ocean is vital to our shared future.” The theme of the Conference, “Scaling up ocean action based on science and innovation for the implementation of Goal 14: stocktaking, partnerships and solutions,” in line with the UN Decade of Ocean Science for Sustainable Development, stresses the critical need for scientific knowledge and marine technology to build ocean resilience.
The Secretary-General also stated there is good news with a legally binding instrument on the conservation and sustainable use of marine biological diversity of areas beyond national jurisdiction; a new treaty that is being negotiated to address the global plastics crisis that is choking our oceans; and a week ago multilateral action on display with a World Trade Organization agreement on ending harmful fishery subsidies. But he also noted much more needs to be done.
Fisheries subsidies deal will contribute to sustainable blue economy: DG Okonjo-Iweala (WTO)
Today, over three billion people depend on marine and coastal biodiversity for their livelihoods. How quickly and how well we manage these resources, and the decisions we all make now, will greatly impact people and the planet for decades to come. This is a moment for global cooperation and for global solidarity.
A sustainable, global blue economy requires a strong set of rules, regulations and policies. In 2015, world leaders tasked the international community with the SDGs, including SDG 14 on sustainable ocean and fisheries management. We are now in a race against time to complete the Agenda 2030 for sustainable development and the relevant SDGs.
The Geneva package adopted at MC12 was multilateralism at its best — our 164 members, from Ukraine and Russia to US, China, EU, India, Japan and so many SIDS and LDCs and other developing countries — came together across geopolitical fault lines to strike agreements that will make our ocean healthier, and enhance our collective ability to respond to the COVID pandemic and the food crisis that has been made much worse by the war in Ukraine. It shows that with the right level of political commitment and leadership, multilateralism can work.
The new agreement on fisheries subsidies - the WTO’s first to put a primarily environmental objective at its core — responds to SDG 14.6. After over 20 years of negotiations, members agreed on curbing the estimated US $22 billion in annual public support that contributes to the depletion of marine resources. It bans subsidies that contribute to illegal, unreported, and unregulated fishing, as well as fishing in the unregulated high seas and in overfished stocks.
A new Fund has been established to provide technical assistance — in partnership with organizations like FAO, IFAD (and World Bank) — and capacity building to developing countries, helping them implement the new rules and improve their fisheries management. We’ve already received substantial pledges from donor countries and more is expected.
While small-scale fisheries provide jobs along the value chain for 60.2 million people — nearly 90 per cent of fishing employees worldwide — their voices are often undervalued and unrecognized in global food systems, experts and delegates alike stressed today, as participants in the fifth Lisbon dialogue explored ways to protect their valuable stocks from overexploitation. Taking place on day three of the 2022 Ocean Conference, the interactive dialogue — “Making Fisheries Sustainable and Ensuring Access to Marine Resources and Markets for Small-Scale Fishers” — looked at how subsidies exacerbate the problems of overcapacity and overfishing and are often a source of unfair competition against small-scale fishers. Against that backdrop, Qu Dongyu, Director-General of the Food and Agriculture Organization (FAO), said oceans, rivers and lakes can help feed the world, provided that their precious resources are exploited responsibly, sustainably and equitably. While marine food production is proven to be more nutritious, has less environmental impact and emits fewer greenhouse gases than land animals, too few countries include fish in their food security and nutrition strategies. Nonetheless, he said effectively managed fish stocks are recovering, citing progress on Sustainable Development Goal 14.6, which aims to eliminate subsidies that promote overfishing and illegal, unregulated and unreported fishing.
The speaker from Africa Blue Economy highlighted fishing’s share of gross domestic product in many African countries, noting that steps have been taken at the national, regional and continental levels to promote sustainable fisheries management. The African Union is also working to establish a food security agency to reduce post-catch losses by upgrading the “cold chain” and other measures to facilitate market access.
The global agrifood sector faces fundamental challenges over the coming decade, particularly the need to feed an ever-increasing population in a sustainable manner, the impacts of the climate crisis and the economic consequences and disruptions to food supply linked to the war in Ukraine, according to a report released today by the Food and Agriculture Organization of the United Nations (FAO) and the Organisation for Economic Co-operation and Development (OECD). The OECD-FAO Agricultural Outlook 2022-2031 focuses on assessing the medium-term prospects for agricultural commodity markets. The findings of the report underscore the crucial role of additional public spending and private investment in production, information technology and infrastructure as well as human capital to raise agricultural productivity.
Prices of agricultural products have been driven upward by a host of factors, including the recovery in demand following the outbreak of the COVID-19 pandemic and the resulting supply and trade disruptions, poor weather in key suppliers, and rising production and transportation costs, which have been further exacerbated recently by uncertainties regarding agricultural exports from Ukraine and Russia, both key suppliers of cereals. Russia’s role in fertilizer markets has also compounded already existing concerns about fertilizer prices and near-term productivity.
The report provides a short-term assessment of how the war may affect both global agricultural markets and food security. It underlines major risks to key commodity markets: equilibrium prices for wheat could be 19% above pre-conflict levels if Ukraine fully loses its capacity to export and 34% higher if in addition Russian exports are 50% of normal amounts.
COVID-19 Drives Global Surge in use of Digital Payments (World Bank)
The COVID-19 pandemic has spurred financial inclusion – driving a large increase in digital payments amid the global expansion of formal financial services. This expansion created new economic opportunities, narrowing the gender gap in account ownership, and building resilience at the household level to better manage financial shocks, according to the Global Findex 2021 database. As of 2021, 76% of adults globally now have an account at a bank, other financial institution, or with a mobile money provider, up from 68% in 2017 and 51% in 2011. Importantly, growth in account ownership was evenly distributed across many more countries. While in previous Findex surveys over the last decade much of the growth was concentrated in India and China, this year’s survey found that the percentage of account ownership increased by double digits in 34 countries since 2017.
The pandemic has also led to an increased use of digital payments. “The digital revolution has catalyzed increases in the access and use of financial services across the world, transforming ways in which people make and receive payments, borrow, and save,” said World Bank Group President David Malpass. ”Creating an enabling policy environment, promoting the digitalization of payments, and further broadening access to formal accounts and financial services among women and the poor are some of the policy priorities to mitigate the reversals in development from the ongoing overlapping crises.”
Industry experts unravel technology’s influential impact in pursuit of sustainable development goals as part (Business Insider India)
Opening the High-Level Political Forum on Sustainable Development last year, the United Nations Secretary-General António Guterres stressed that the situation “can and must” be turned around. “We have the knowledge, the science, the technology and the resources”, said the UN chief. “What we need is the unity of purpose, effective leadership from all sectors, and urgent, ambitious action”. As the world faces the ravaging consequences of climate change, biodiversity loss, pollution, pandemic, and multiple socio-economic disruptions, it’s crucial that we combine all our strength and knowledge to pursue sustainable development. Meanwhile, the world is rolling towards a digital future, and the far-reaching influence of digital technology can help adopt sustainable practices, improve resource efficiency, reduce pollution and emissions, and adapt to climate change better.
How global fintech charted a positive course during COVID-19 (WEF)
When the Global COVID-19 Fintech Market Rapid Assessment Study provided a snapshot of the fintech market’s performance during the first six months of the global pandemic, the indications were that it had fared pretty well. All but one of the fintech verticals reported growth in the first half of 2020 compared to the same period in 2019, with some sectors even reporting a 21% year-on-year growth in transaction volume.
But after two years of lockdowns, vaccination programmes and varying levels of governmental intervention, what impact has this had on the fintech industry? And why is this important? As a follow-up to the initial study, the Cambridge Centre for Alternative Finance at the University of Cambridge Judge Business School, the World Bank Group and the World Economic Forum have jointly published the Global COVID-19 Fintech Market Impact & Industry Resilience Study.
How Crypto and CBDCs Can Use Less Energy Than Existing Payment Systems (IMF Blog)
Most of the world’s central banks have already agreed they should help fight climate change, a critical challenge that necessitates reductions in both energy consumption, which is our focus here, and the carbon emissions associated with the energy consumed.
To meet these aims, it’s important to pay attention to the energy used by the payment systems that central banks regulate and oversee. Monetary authorities now have a unique opportunity to improve efficiency as the way people pay is undergoing rapid changes worldwide. Digital currencies, from crypto assets to central bank digital currencies, can play a role in the transformation that policymakers envision.
With a desire to limit the energy consumption comes a need to understand what drives it. Policymakers confront researchers like us with several questions yet to be fully explored. These include how crypto assets compare with existing payment systems, what factors influence the energy use of the networks, and how new technology can make payments cleaner and greener.
Britain pledges to tackle trade barriers for exporters (Reuters)
Britain’s trade minister will on Thursday pledge to target dozens of bureaucratic barriers to exports in a pitch for freer trade, the day after she extended a protectionist package of tariffs and quotas on steel products. Anne-Marie Trevelyan acknowledged the move to increase barriers to steel imports breached international trade rules but said the situation warranted the extension of safeguards, even though she considers herself a champion of free trade. read more Ahead of her speech on Thursday, the trade ministry said it would target 100 priority issues worth 20 billion pounds ($24.24 billion) that could be resolved outside of negotiations over new Free Trade Agreements to replace the arrangements that Britain operated under in the European Union.
Among the trade impediments listed, it cited blocks on meat exports to countries in Asia, rules that delay medical devices entering South Africa and restrictions on UK-trained lawyers practicing in Japan.
The trade ministry said it had gained extra powers to remove such trade barriers due to Brexit - although Britain and the EU face the prospect of a possible trade war themselves over a dispute around trading arrangements in Northern Ireland.
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Local news
South Africa is still an attractive investment, with billions flowing in: government (BusinessTech)
South Africa remains an attractive and lucrative investment destination, says Alvin Botes, deputy minister of international relations and cooperation. This was highlighted in the recent South African Reserve Bank Quarterly Bulletin, foreign direct investment (FDI) inflow from across the globe was R27.2 billion in the first quarter of 2022. This comes after an inflow of R22.7 billion in the fourth quarter of 2021, marking an uptick as a result of non-resident parent entities increasing equity investments and granting loans to domestic subsidiaries, said the Reserve Bank.
The Reserve Bank added that other investment liabilities switched from a revised outflow of R29.6 billion in the final quarter of 2021 to a significant inflow of R81.2 billion at the beginning of 2022.
Botes said the upward revision of foreign investment could be attributed to the decisive steps taken by the government toward more predictable and transparent policies. “This signals that South Africa’s macroeconomic and political fundamentals are in place, reinforcing our position as a credible investment destination.”
The deputy minister, speaking at an investment seminar in Portugal on Monday, said that South Africa offers a high return on investment and vast opportunities for investors.
From 2012 to 2021, total trade between South Africa and Portugal increased from approximately R2 billion in 2012 to approximately R7.5 billion in 2021. However, the trade balance is currently skewed in favour of Portugal, added Botes. “South Africa has embarked on an ambitious investment drive, which aims to raise $100 billion in new investment over five years,” said the deputy minister.
South Africa in a position to export energy – Anglo American Platinum (Engineering News)
South Africa is one of only four countries that has more renewable energy available to it than what it needs for itself, which places the country in a very strong position to be able to export energy, with hydrogen in the form of ammonia, hydrogen gas or liquid hydrogen among the best ways of doing so, Anglo American Platinum CEO Natascha Viljoen said on Tuesday. “If you look at the northern hemisphere broadly, they just don’t have enough renewables for their own need, which puts us, as a country and as a platinum group metals (PGMs) sector, in a very good position,” Viljoen told a media breakfast in which Mining Weekly participated.
KRA records 55pc rise in border post revenue (Business Daily)
The Kenya Revenue Authority (KRA) has registered a 55 percent growth in revenue due to increased efficiencies at the Lunga Lunga one-stop border post (OSBP).The authority collected Sh810 million by April 2022 from September 2021 against Sh553 million obtained in the same period previously. The state is seeking to grow trade after officially commissioning the border post next month following the completion of a key border infrastructure. According to KRA, traffic at Lunga Lunga one-stop border post grew by 166 percent from September 2021 to January 2022 compared to the same period the preceding year as the economy recovers from the effects of Covi-19. Incoming traffic represents over 65 percent of the OSBP traffic flow. “There has been a smooth flow of cargo, vehicles and passengers through the border where time to clear was reduced by more than a half. For instance, cargo which used to be cleared for about 45 minutes, due to enhanced efficiency, now takes less than 15 minutes,” said Mr Changole.
Government to implement AfCFTA strategy to boost country’s trade (Capital FM)
The government has embarked on a sensitization campaign countrywide to create awareness amongst the business community on the opportunities offered by the African Continental Free-Trade (AfCFTA) and how to exploit the openings offered. Industrialisation, Trade and Enterprise Development Cabinet Secretary Betty Maina said Kenya has prepared a national implementation strategy that provides a framework for the implementation of the AfCFTA to facilitate an expansion of the country’s trade and investment in Africa and support structural transformation. She said the strategy, which is also aimed at fostering economic growth and sustainable development, is envisioned to secure markets for goods and services within the African region, promote value addition and diversification of products in the AfCFTA markets.
SGR seeks to reap from rising demand for freight services (Business Daily)
The ramping up of Kenya’s cargo operations on the standard gauge railway line between Mombasa, Nairobi and Naivasha has pushed the government to increase haulage on the freight service. The Kenya Railways Corporation (KRC) has begun the process of buying 500 wagons for freight services to meet rising demand. KRC coast operations manager Thomas Ojijo told Shipping & Logistics that purchase approval has been made. Currently, KRC is operating 10 freight trains from Mombasa to Nairobi and Naivasha Inland Container Depots.
“We are only carrying 40 percent of containerised cargo and 10 percent of the conventional cargo. The remaining cargo is still being transported on the roads,” said Mr Ojijo.
Maize Flour Price to go down as Govt removes tax on imports (Capital FM)
The government has suspended all taxes on maize imported into the country in a bid to boost food security. The move will come as a relief to Kenyans as the price of flour is set to go down. Currently the price of a 2kg packet of maize flour retails at a cost of Sh210 up from Sh140 last month. Agriculture Cabinet Secretary Mr. Peter Munya said the abolishment of taxes levied on maize imports will ensure there is enough maize supply in the country lowering the cost of flour production. Speaking at the Namanga border Tuesday after meeting several stakeholders to address the maize shortage crisis, Munya said all maize imported into the country from Tanzania and other COMESA countries will be exempted from taxation effective July1. “We have suspended all levies and charges on maize coming into the country from all border points. The move is aimed at averting the maize shortage crisis and ensuring cost of maize flour comes down,” said Munya.
Impact of soaring fuel price keeps transport sector on edge (Addis Standard)
The soaring fuel prices have greatly impacted the transportation services, Addis Ababa City public transport users and taxi drivers told Addis Standard. According to various economists and international reports, oil prices have risen sharply as a result of the Russia-Ukraine war to the extent that the price of a single barrel of crude oil has risen to $140, which is a significant increase since mid-2008. The oil price hikes at the international level have put Ethiopia, which has already been languishing in high inflation due to civil war, drought, and other factors, placing the country in a difficult position.
Due to the price increment in the international market, the Ethiopian government announced last month that oil prices would be augmented too. Addis Ababa Transport Bureau, on its part, subsequently stated an increment of transportation fees for taxis ranging from 0.50 cents to 3.50 ETB. The government warned that it would take action against those who raise prices on utilities or consumer goods following its oil price adjustment.
Following the oil price adjustment in the country, Addis Abeba City Administration Transport Bureau announced its decision of revising the tariffs for mid-bus and mini-bus transport vehicles to be implemented from June 8th of 2022 in accordance with its assessment.
Oxford Business Group signs MoU with LCCI for 2023 economic analysis (The Sun Nigeria)
Nigeria’s plans to put the private sector at the heart of the next phase of its economic development will be explored in a forthcoming report by the global research and advisory company Oxford Business Group (OBG). The Report: Nigeria 2023 will look in detail at the key sectors of the country’s economy with high growth potential, which include agriculture, energy, ICT and industry. It will also consider the important role earmarked for public-private partnerships in supporting Nigeria’s infrastructure development, with major projects such as the Lekki Free Zone and the Lekki-Epe road among those in the spotlight.
Kaduna dry port plans domestic export warehouse operation (The Sun Nigeria)
The Kaduna Inland Dry Port (KIDP) is set to commence operation as Nigeria’s first Domestic Export Warehouse (DEW) to promote export of made in Nigeria goods and agricultural produce. Rotimi Raimi-Hassan, the Port General Manager told newsmen in Lagos that the facility is ready to be launched while listing support infrastructures already put in place for seamless and efficient operation. According to him, KIDP is set for commissioning to pilot the DEW services as the most equipped facility in Nigeria with modern laboratory to check quality of exports that would be processed through the dry port.
Unleashing entrepreneurial skills, key to Ghana’s economic transformation - Alan Kyerematen (News Ghana)
Speaking at the launch of the Business Resource Centers (BRCs) on Monday, 27th June, 2022 at the Accra International Conference Centre (AICC), the Minister of Trade and Industry, Alan K. Kyerematen, challenged individuals to start up their own business ventures in order not to be found wanting after retirement. He indicated that, many countries, especially in the Europe, Asia, and North America, developed their economies by critically looking into the building of strong MSMEs from family-owned businesses into multinational companies we see today. Noting that, while these countries have experienced significant economic transformation by paying critical attention to the development of the MSMEs sector, our entrepreneurs and private sector operators continue to face serious challenges which successive Governments have made attempts to overcome.
Mr. Alan Kyerematen, emphasized that, “the great nations of this world are not where they are because of their natural resource endowments. If that were the case, countries like Singapore and South Korea would be the poorest countries in the world and Africa would be the richest. They are great because of their commitment to the development of entrepreneurs.
He stressed that, “If the only answer to export revenue mobilisation is proceeds from the export of cocoa, then we may have a problem in this country. We have been depending on the export revenues of cocoa and gold for over a century now. It must occur to us that we have to move beyond cocoa. We should mobilize MSMEs to produce for export.”
Prices of imported food products jumped 15.3% YoY in Douala in May 2022 (Business in Cameroon)
May 2022 was marked by an increase in the prices of imported food items in Douala. According to data just published by the National Institute of Statistics (INS), compared to the same period in 2021, “final household consumption prices have risen by 6%” in Cameroon’s economic capital. This is well above the tolerance threshold of 3% allowed in the CEMAC.”
“This development in May 2022 is linked to the surge in food prices,” which rose by 12.4% year-on-year, with a peak of 15.3% for imported food products (compared with 11.4% for local products).
Egypt’s industrial sector contributes 11.7% of GDP (ZAWYA)
Minister of Trade and Industry Nevine Gamea stated that industry contributes 11.7% to the country’s GDP and employs about 28.2% of the total Egyptian workforce, and that its investments amounted to approximately EGP 49bn in FY2020/21, representing about 6% of total public investments.She also said that the industry and trade sectors have achieved tangible development over the past eight years since President Abdel Fattah Al-Sisi took office in 2014.Moreover, the Egyptian government has paid unprecedented attention to developing industrial sectors and increasing export rates, as they are among the mainstays of the national economy and the engine of comprehensive economic development in Egypt. They also play a pivotal role in achieving social stability by providing job opportunities for young people and improving citizens’ living standards.
African trade and integration news
Digitalise operations to harness AfCFTA benefits, Sanwo-Olu tells MSMEs (TheCable)
Babajide Sanwo-Olu, governor of Lagos, has urged micro, small and medium enterprises (MSMEs) to embrace digitalisation to maximise the advantages of the African Continental Free Trade Area (AfCFTA) agreement. Sanwo-Olu said at the opening ceremony of the 7th edition of MSME Exclusive Fair on Tuesday in Lagos. “The theme of this fair, Sustainability of MSMEs on AFCFTA Opportunities for Global and Digitalised Economy is apt because the AFCFTA is expected to bring huge gains to MSMEs in Nigeria,” he added. “AFCFTA agreement can play the role of unlocking innovation, growth and productivity across the continent but significantly for its MSMEs segment by translating spending power to economic development.
EAC boss says new common external tariff to benefit citizens (The New Times)
For over a month now, tension has heightened in the east of the Democratic Republic of Congo, and the region, after the resurgence of the M23 rebellion even after the country made a big step forward in joining the East African Community (EAC). Besides the difficulties in the bloc’s new member, in May, EAC Ministers in charge of trade and finance adopted 35 per cent as the 4th band of the region’s Common External Tariff (CET). Implementation of the reviewed EAC CET commences on July 1. In an exclusive interview with The New Times’ James Karuhanga, EAC Secretary General, Peter Mathuki, maintained a positive outlook while discussing the Congolese issue, among other prevalent challenges. Mathuki insists that however difficult the situation may look, there is always a way out. Mathuki also talked, at length, about the region’s revised Common External Tariff, stressing that it is, eventually meant to benefit the region’s common man.
SADC to increase renewable energy generation to reduce carbon emissions (SADC)
The Southern African Development Community (SADC) is developing the Regional Gas Masterplan to enable the utilisation of the abundant gas reserves in the Region to reduce its reliance on coal in the wake of the global commitment, including the Paris Agreement’s ambition to decrease carbon emissions and maintain global temperatures below 1.5° Celsius. This was said by Dr. Thembinkosi Mhlongo, the SADC Deputy Secretary for Regional Integration, on June 23, 2022, in Gaborone, Botswana, during a meeting with Ms. Yuka Fujino, the Chargé d’affaires of the Japanese Embassy in Botswana. The purpose of the meeting was to discuss the Eighth Tokyo International Conference on African Development (TICAD-8), as well as other issues of mutual interest to the two parties.
Dr Mhlongo highlighted SADC’s efforts to expand solar energy generation output in order to increase its power generation capacity, corridor involvement, and economic prosperity while also reducing the Region’s carbon footprint. He said that in light of the recent increase in the number and severity of disasters, there was a need for increased collaborative efforts with partners to put in place mechanisms, including the operationalisation of the SADC Humanitarian and Emergency Operations Centre that will aid the Region in mitigating disasters and monitoring all disaster risk factors.
Regional lobby makes case for women cross border traders (The New Times)
The East African Business Council (EABC), the regional body for private sector associations has called for more efforts and enforcement in easing cross-border trade for women, especially those in the informal sector. The request was made on Monday June 27, during a public-private dialogue that convened representatives from trade facilitation agencies, importers, exporters, transporters, East African Grain Council members, Private Sector Foundation Uganda and women cross-border traders to chart out solutions to ease the free movement of persons and cargo at Gatuna One Stop Border Post (OSBP). The border links Rwanda to Uganda, but officials said that many of the challenges here are shared across other common borders connecting member states.
The meeting was aimed analyzing the efficiency and implementation of the EAC Simplified Trade Regime (STR) at the border posts, the efficiency and implementation of the Regional Electronic Cargo, Trucks and Drivers System (RECTDS) tracking system and the EAC Single Customs Territory (SCT) framework among other initiatives.
Miria Akaukwasa, the Chairperson of Katuna Women Cross Border Traders appreciated that a trade information desk had been set up at the border to ease trade for informal traders. However, she stated that women need to be sensitized about the EAC Simplified Trade Regime and small cross border traders should be allowed to do business at the Gatuna OSBP.
African economies see reasons for optimism despite crises (Eyewitness News)
From COVID-19 to the war in Ukraine, external crises have put pressure on African economies, but many on the continent see opportunities to undertake radical reforms. Africa already showed some resilience during the pandemic as its economic contraction was less severe than in the rest of the world, shrinking by 2% compared to 3.3% globally in 2020.While Russia’s invasion of Ukraine is weighing on the world economy, Africa faces a better outlook again in 2022.”Africa is headed towards growth of around 3.7%, while in North America and Europe there is a real risk of recession”, said economist Lionel Zinsou, formerly prime minister of Benin.
“We haven’t been the biggest victims of the pandemic, and we won’t be the biggest victims of the collateral consequences of the war in Ukraine”, added Zinsou. Another positive signal is that investor confidence in Africa is up to a higher level than that before the pandemic.
IATA backs air transport liberalisation for Africa (New Telegraph)
The Director-General of the International Air Transport Association (IATA), Willie Walsh has urged Africa to take a cue from Europe in its air transport deregulation process, adding that the Single Africa Air Transport Market (SAATM) would give a massive increase in connectivity, increase in the number of flights, increase in the number of activities, much better competition. He noted that this would benefit the African consumers, the connectivity which has a huge benefit for the industry and the economies; stressing that it is the right way to go.
The Single African Air Transport Market (“SAATM”) was launched in 2018 with the aim of developing air services and harmonising associated regulations in Africa and stimulating the flow of private capital in the industry. The full implementation of SAATM by all countries in Africa could reap enormous economic benefits. However, in the absence of a clear implementation framework, the open skies treaty is facing significant challenges. Alternatives to full liberalisation are being explored as existing carriers seek other routes to gain market access.
Aviation has the potential to make a significant contribution to economic growth and development in Africa. An IATA survey suggests that if just 12 key African countries opened their markets and increased connectivity, an extra 155,000 jobs would be created and approximately US$1.3 billion in annual GDP generated in those countries He further stated that liberalisation of air space creates new routes and greater connectivity on the continent leading to shorter travel times, greater convenience, and fare savings for customers.
How hydrogen can transform Africa’s reliance on expensive imported energy (The National)
Mobile phone technology enabled Africa to leapfrog fixed-line telephones and revolutionise communication on the continent. Now, hydrogen may do the same, freeing African countries from the imported energy that drains many of their economies. For sub-Saharan Africa, which is almost entirely dependent on imported petrol and diesel, hydrogen could be the path to energy independence. Currently, even oil producers such as Angola and Nigeria are reliant on imported refined fuels. “Africa can leapfrog some of the legacy technologies of the West, such as fossil energy,” says Benedikt Sobotka, chief executive of global mining company Eurasian Resources Group.
AU to extend insurance to agriculture, green energy sectors (ETEnergyWorld)
The African Risk Capacity, a specialised agency of the African Union, has said that it will extend insurance covers to the continent’s agriculture and green energy sectors. Lesley Ndlovu, CEO of African Risk Capacity told a continental forum in Nairobi, the capital of Kenya, that it will provide insurance to cover losses for farmers against common weather-related areas of drought, floods, and tropical cyclones, Xinhua news agency reported.
“We cover staple crops such as wheat and maize, cash crops including cocoa and livestock products to boost food security in Africa,” Ndlovu said during the 48th Africa Insurance Organization Conference. Currently, 35 African Union member states have joined the African Risk Capacity.
Overcoming the barriers to technology adoption on African farms (Brookings)
Sub-Saharan Africa’s agricultural sector is widely recognized to have vast, under-utilized potential. Land and labor productivity are low compared to other regions and have barely increased over the last 20 years. Low productivity has created widespread rural poverty and food insecurity, so the potential for productivity increases represents an opportunity to boost inclusive growth.
In a recent report, we use new data and trends in output and employment, review the main productivity issues that are preventing transformation in the African agricultural sector, and ask how Fourth Industrial Revolution (4IR) technologies might address them and unlock better job opportunities. The optimistic narratives around African farmers’ adoption of technology often overlook the more long-standing challenges they face that are preventing the adoption of much older productivity-increasing technology, such as fertilizers and conventionally produced hybrid seeds. For digital agriculture to be effective and transformational in Africa, a concerted effort to address Africa’s long-standing agricultural productivity challenges is needed.
World Bank Boosts Pastoral Economies and Climate Action in the Horn of Africa (World Bank)
The World Bank Board of Directors approved $327.5 million to cushion pastoralists in Djibouti, Ethiopia, Kenya, and Somalia from the impacts of drought and better connect them to markets. The De-risking, Inclusion and Value Enhancement of Pastoral Economies in the Horn of Africa (DRIVE), will enable the region to adapt to the impacts of climate change, commercialize livestock production in pastoralist communities, and ensure inclusion of the marginalized and vulnerable groups such as women in the sector.
The project will enable $572 million in private capital to help pastoralists tap into drought insurance and savings, get access to digital accounts, and attract more private investment in pastoral areas. About 2,500 pastoralists groups will be connected to markets so that they get better value from their livestock rearing activities, as currently, they are at the bottom of the value chain.
Crypto market meltdown rattles 12 million East African investors (The East African)
A painful financial journey has ensued for at least 12 million East Africans who are now counting, in billions of dollars, losses both from the cryptocurrency market crash and a series of related Ponzi ‘get-rich-quick’ schemes that have unfolded in the wake of the crisis. As extreme market conditions force legitimate crypto-exchanges to close shop with many laying off employees, reports of some crypto-investment schemes disappearing with investors’ funds have started to surface. This raises questions about the future of unconventional assets.
In general, total global market value for all crypto assets has fallen to about $890 billion from $2.8 trillion last November, which has plunged several East Africans holding cryptocurrencies into financial turmoil. Also, there are growing cases of fraudulent schemes around cryptocurrency investments, which, according to American consumer protection agency Federal Trade Commission, led some 26,000 people to lose over $1 billion since 2021 in the US alone.
Just two weeks ago, some cryptocurrency founders disappeared after defrauding Kenyan would-be investors of at least $8.5 million, barely six months after it surfaced on the internet, and this week, four young men were brutally murdered over alleged crypto-scamming.
New platform to enhance Sino-African trade (ecns)
A new platform to promote economic and trade cooperation between China and Africa was established in Beijing on Tuesday. The Asia-Africa Innovation Cooperation Center was set up following President Xi Jinping’s proposal made at the Beijing Summit of the Forum on China-Africa Cooperation in 2018 to set up a China-Africa center on innovation cooperation to promote innovation and entrepreneurship among young people in China and Africa, according to the Administrative Committee of Beijing Daxing International Airport Economic Zone. The center was jointly set up by the committee, the embassies of a number of African nations in China and Chinese companies including Asia-Africa Silk Road International Business Co.
It is set to become an important channel through which Chinese and African entrepreneurs can set up and develop business more efficiently, the zone’s administrative committee said.
The committee said it will intensify cooperation with African countries and improve the business environment and services, with the center facilitating China-Africa cooperation in areas such as trade, investment, science and technology, environmental protection, culture, tourism and talent cultivation.
UAE to increase exports to countries in West Africa (AI-Monitor)
An Emirati exports arm has announced a new agreement to boost trade with several West African states. The Abu Dhabi Exports Office signed today a financing agreement with the ECOWAS Bank for Investment and Development. The deal establishes a $20 million credit line between the two entities for the purpose of boosting trade between the United Arab Emirates and the 15 ECOWAS member states in West Africa, the Abu Dhabi Exports Office said in a press release. The ECOWAS Bank for Investment and Development is the financial arm of the Economic Community of West African States (ECOWAS).
EU’s renewed trade ties with Africa will boost development (ZAWYA)
The European Parliament has passed a motion calling on the EU to elevate tech transfers and trade with Africa so the developing continent can move beyond the paradigm of mostly supplying cheap raw materials. Backing a report that advocates redressing imbalances left over from the colonial era, the multinational legislature signalled it wants to better equalize trade relations to enable Africa to move up the development and digital scale. Kathleen Van Brempt, a Belgian Member of the European Parliament (MEP), says “For too long, Africa has been reduced to a supplier of raw materials, with the result that the continent’s immense economic potential remains untapped”. Fellow Belgian MEP Saskia Bricmont says the EU should emphasize improvements and funding for infrastructure, food security, civil society, free trade agreements and sustainable economic development.
Global economy news
EIF partnership helping LDCs enhance trade capacities, Annual Report reveals (WTO)
The report highlights how the EIF partnership has catalysed support for LDCs, helping them to improve their trading capacity and to generate over USD 200 million in new exports in 2021. “LDCs took a lead role in improving their economic situation in 2021, working closely with the EIF partnership to build their institutional and productive capacities,” said EIF’s Executive Director, Ratnakar Adhikari.
Trade in ocean goods shows resilience, UNCTAD data reveals (UNCTAD)
Trade in ocean-based goods showed remarkable resilience during the recession induced by COVID-19 in 2020, according to the latest available data from a new UNCTAD database. Such goods include resources either sourced from the ocean, made from marine resources or manufactured for marine activities. UNCTAD’s ocean trade database, released in April 2022, draws on official statistics from all UN member states. It shows that trade in ocean-related goods fell by 3.2% in 2020 compared to 2019, faring better than both world trade in goods, which dropped by 5.3%, and trade in ocean-related services, which collapsed – for example, international tourist arrivals declined by 74% in 2020.
“The resilience of trade in ocean goods helped sustain millions of livelihoods amid the slowdown caused by the pandemic,” said David Vivas, an UNCTAD legal officer working on ocean economy issues.
Exports of ocean-based goods were worth at least $678 billion in 2020 in these sectors: high technology and other manufactured goods ($268 billion), ships, port equipment and parts ($257 billion), marine fisheries and aquaculture ($87 billion), seafood processing ($65 billion) and sea minerals ($1.4 billion). UNCTAD’s analysis shows that the manufacturing sector represented 77% of exported ocean economy goods, reflecting its higher added value compared to the primary sector.
DDG Paugam cites need for closer WCO-WTO cooperation to facilitate green transformation (WTO)
More and more trade measures are related to the environment, DDG Paugam noted. Since 2009, WTO members have notified around 14,600 trade-related environmental measures, with one in six measures now being environmentally related compared to one in 12 measures in 1997. “Most of these measures are the kind of policies that will require direct or indirect action from customs officials, such as environmental requirements, conformity, risk assessment procedures, import and export licences, bans, quotas, and so on,” he said. “This means a lot of added challenges and work for customs officials. And trade negotiators absolutely need to be aware of these challenges if they want their measure to be efficient in practice in having a concrete impact for the environment.” Customs officials need to be engaged early in the process to ensure these policies are coherent, fit-for-purpose and implementable.
South Africa among countries where debt collection is most difficult (The Mail & Guardian)
Out of 49 countries, South Africa is the 43rd most difficult for debt collection, according to a ranking by international insurer Allianz Trade. The Allianz Trade Collection Complexity Score, which measures how difficult it is to collect debt in a given country, found that South Africa has a severe level of collection complexity. The ranking measures the level of complexity relating to international debt collection procedures from zero (least complex) to 100 (most complex). South Africa has a score of 67. Sweden and Germany top the ranking as having the least complex debt collection, both with scores of 30, with global collection complexity at 49.
G-7 Launches Climate Club to Try and Avoid Green Trade Wars (TIME)
Leaders of the world’s most advanced economies have agreed to start a Climate Club where members agree on joint rules and standards in the fight against global warming with the hope that it will avoid spats over green tariffs. The Group of Seven nations reached a deal on the issue at a three-day summit in Bavaria, Germany, that ended on Tuesday. It’s a significant achievement for German Chancellor Olaf Scholz, who has made better coordination on climate protection measures a key theme of his G-7 presidency. “We note with concern that currently neither global climate ambition nor implementation are sufficient to achieve the goals of the Paris Agreement,” the final G-7 leaders said in a statement. The Climate Club will address that by “accelerating climate action and increasing ambition, with a particular focus on the industry sector.”
Scholz has argued that the Climate Club would help eliminate a chaotic patchwork of national regulations that could increase the risk of new trade conflicts as countries slap levies or tariffs on imports deemed less sustainable. It will also potentially help mitigate disadvantages faced by companies doing business in regions with more ambitious carbon-reduction goals, and put pressure on non-members to adopt stricter climate protection measures.
WTO members review six free trade agreements, stress importance of transparency (WTO)
Members considered the Preferential Trade Agreement between Namibia and Zimbabwe on goods, which entered into force in April 1993. The parties noted that this agreement is based on the Southern African Development Community Protocol on Trade, which seeks to promote trade as an engine for economic development and poverty eradication in the region.
Effective Health Care Reform Requires Transparency, Accountability, and Decentralized Financing, Says New Report (World Bank)
Nearly two decades ago, many low- and middle-income countries began a transformation in health care financing. Centralized budgets and low levels of autonomy for facilities and workers were replaced with frontline autonomy, performance pay, and greater transparency and accountability for results, all through a package of reforms that came to be known as performance-based financing. Unfortunately, while health coverage did expand dramatically over the past two decades, this expansion was not accompanied by the expected improvements in health outcomes. A new World Bank Policy Research Report, Improving Effective Coverage in Health: Do Financial Incentives Work?, draws on research from 15 years and 40 countries to better understand the gap between health coverage and outcomes and point a way forward.