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AfCFTA not quite the SMME trade silver bullet SA hoped (Daily Maverick)
A draft ANC policy document, which was among several discussed at the ANC’s national executive committee meeting earlier this week, envisages greater cooperation with the private sector and signals a departure from its previously somewhat more hostile stance towards business. The document could still undergo changes before being made public. Whereas the ANC and the government have thus far mostly voiced support for The African Continental Free Trade Area agreement (AfCFTA), which came into operation at the start of last year, the document warns that there are some negative consequences for South Africa in the short to medium term due which came as a result of unequal levels of development. According to the document, “the ‘asymmetrical’ trade liberalisation approach adopted to support vulnerable and [least developed countries] means that South Africa will be removing tariffs and trade barriers to about 90% of its goods and services without reciprocity from those countries, some [of which] have up to 15 years to remove their respective trade barriers”. The agreement could also “have a negative impact on less skilled labour in the short and medium-term, especially if low-skill sectors were originally protected [by tariffs]”. Lastly, it says the agreement could have “adverse effects on many economies” because when there is more competition, micro, small and medium enterprises and small-scale farmers could be threatened “because they have higher trading costs than bigger companies and consequently face financial challenges to compete with greater firms”.
IFC Supports Business Partners Ltd to Expand Green Building Financing in South Africa (IFC)
To support the construction of green buildings in South Africa, IFC today announced a financing package for Business Partners Ltd to help fund environmentally friendly industrial and retail sites for the use of small and medium-sized enterprises (SMEs).IFC is providing a 600 million rand ($42 million equivalent) loan package to Business Partners Ltd, a South African non-banking financing entity specialized in providing finance, mentorship, and support programs to SMEs. Business Partners will use IFC’s loan to finance the construction of certified green commercial buildings in South Africa and/or to renovate existing commercial buildings to make them more environmentally friendly, making them at least 20 percent more energy efficient. Eligible green building certifications will include EDGE, LEED, BREEAM, and Green Star.
“South Africa is one of the world’s most carbon-intensive economies and as a result the country’s green economy has huge market potential. Through investments into the development of green buildings by the SME sector, we believe we will not only be playing our part in preserving our environment but also contributing to much-needed economic growth, job creation and energy security. We are grateful to the IFC for this opportunity to support businesses that make a difference,” said Ben Bierman, Managing Director at Business Partners Ltd.
Western Cape fruit exports expected to increase (Engineering News)
Western Cape Agriculture Minister Ivan Meyer this week said he was pleased with the forecast of an increase in fruit exports from the province, following the good rainfall in the province since 2018. In a statement, he said it was expected that the increased water availability would boost agricultural production. “In light of many disruptions to international trade due to Covid-19, trade facilitation bottlenecks continue to threaten the reliable supply of key agricultural products. “These, among others, relate to trade infrastructure, such as the capacity of ports, and tariff and non-tariff barriers,” he noted. “In addition, the ongoing war between Russia and Ukraine has resulted in a sharp increase in some commodity prices, such as those of fertilisers and wheat, due to limited supply and growing uncertainty for future supply. “Despite this, agriculture is pushing forward, as evidenced by projected harvests for various products,” Meyer said.
The rationale for Musina-Makhado Special Economic Zone is an industrial-scale lie (Daily Maverick)
Were the hapless South African taxpayer ever afforded an opportunity to appraise the investment prospectus for the Musina-Makhado Special Economic Zone – the coal-fuelled steel manufacturing megaproject planned for a sprawling Chinese-controlled “Special Economic Zone” located in the far northern Vhembe District of Limpopo – it’s unlikely ground would ever be broken.
The cost to develop the industrial zone quoted in the September 2019 masterplan is a whopping R344-billion. Funding will be split between the SA public purse, the Chinese operator of the zone and prospective Chinese private investors. The South African taxpayer is liable for the bulk infrastructure estimated at R96-billion.
But consider the risks: there is a chronic glut in the global steel market which has emerged as China’s construction boom has slowed. Both China and South Africa’s domestic steel industries now operate well below their production capacities – with dumping by none other than China into the stagnant local market blamed for the contraction in the SA industry, which now survives ironically on none other than taxpayer-funded handouts.
Changes in sub-Saharan maize trade spells potential trouble for Kenya (The Conversation)
Maize production in some of the sub-Saharan African countries that dominated maize supplies during the 2021/22 marketing year is expected to be lower this coming season. This will bring about some changes in the sub continent’s maize trade in the 2022/23 marketing year, in particular creating complications for Kenya. In the 2021/22 season, Kenya was the largest maize importer in the region.
But Kenya has a longstanding policy against genetically engineered maize. This limits the role of South Africa, the sub-continent’s biggest maize producer and exporter, in meeting Kenya’s needs.
The expected lower production comes in a season when demand for maize from countries in sub-Saharan Africa that rely heavily on imports is expected to remain strong. It’s estimated that Kenya, for example, will need to import 700,000 tonnes of maize for 2022/23. Kenya’s maize production is expected to be marginally higher, but not enough to meet the country’s needs.
International Energy Conference resolves to ensure Africa defines a just energy transition on its own terms (Namibia Economist)
The second and final day of the Namibia International Energy Conference held on 21 April, cemented agreement on the continent’s need to utilise its energy mix to industrialise as it formulates a just transition to a greener energy mix, on its terms.
In a panel discussion on how to formulate a just energy transition on 21 April, there was overwhelming agreement that Africa must shape its narrative and define for itself what a just energy transition must look like. These were sentiments shared by Paulo Gomes, founder and Chairman of Orango Investment Corporation. NJ Ayuk, Chairperson of the Africa Energy Chamber further iterated that a just transition cannot exist without oil and gas. Being in varying states of economic, industrial maturity and carbon footprint emission levels, the developed world “needs to decarbonise, and Africa needs to industrialise,” said Ayuk.
The calls for Africa to exploit its existing resources to create and leverage an energy mix to transform its industrial and economic development comes at a time when there is a decline in investments in oil and gas in Sub-Saharan Africa. According to global investment trends shared by Osam Iyahem of the Africa Finance Corporation, investment and finance institutions have increasingly reallocated financing previously directed to energy capital towards renewable energy, where investment in fossil fuels reached its lowest levels yet in over 10 years in 2020.
While capital is available, access to investment is also hamstrung by how countries navigate their regulatory environments, and the feasibility and the preparation and bankability of projects.
A good regulatory environment, where the needs of both the country and investors are met, where the state facilitates energy to share; prompt exploration; addresses environmental concerns and local content through training and local employment as well as activity controls can make the difference between profit and plunder. They must also create legislative environments that enable investors to monetise and have stability and enforceability. Specifically in the Namibian context of the recent oil discoveries, the panel discussion on regulatory frameworks recommended that an independent regulator of the upstream oil and gas sector should be established in line with the White Paper on Energy Policy of 1998 and the National Energy Act.
Broadband connectivity at 89% (Namibia Economist)
The Ministry of Information and Communication Technology (MICT) has confirmed that there is an increase in the number of mobile broadband subscribers, which is attributed to the MTC 081 Nation project. The Deputy Minister of ICT, Emma Theofelus said the country’s broadband connectivity has reached 89% population coverage, while Long Term Evolution (LTE) infrastructure provides 79% coverage, compared to 40% a year earlier. Theofelus said this at the first in-country session of the Digital Rights and Inclusion Forum held on 20 April, under the theme ‘Towards a Digitally Inclusive Namibia’. Theofelus added that through the broadband policy, the country aims to provide a broadband speed of at least 2Mbps to 95% of the population by 2024.
Improved ports attract more cargo, bolster earnings (Dailynews)
EXPANSION and improvement of Tanzania’s sea ports of Dar es Salaam, Tanga and Mtwara has evidently started attracting more customers, especially those from neighbouring countries to park and ship their consignment. This has seen more revenues which is a form of cargo handling and that affects the entire value chain in road and railway infrastructures. However, one improvement and other competitive advantage for transporters using Tanzania ports is not being said. This is safety, security of trucks, cargo itself and that of its transporters. Yes, it is to be recalled that Tanzania, which shares her borders with eight other countries, has no recent record of highway hijacking and robbery. This means, a track transporting consignment from a given sea port, towards a certain border post, is assured of reaching without any threat to the vehicle itself or driver and other operators. This includes even in case of breakdown incidents. The Deputy Acting Director General of Tanzania Ports Authority (TPA), Mr Karim Mataka, revealed before members of the parliament that currently, South Sudan is eyeing to start using Tanzania’s ports for its consignment.
Mauritius leads African per capita wealth with SA second and Namibia third (Namibia Economist)
The total private wealth currently held on the African continent is US$2.1 trillion and is expected to rise by 38% over the next 10 years, according to the latest 2022 Africa Wealth Report, published by Henley & Partners in partnership with New World Wealth. The new Africa Wealth Report was released on Tuesday 26 April 2022. It reveals that Africa’s ‘Big 5’ private wealth markets — South Africa, Egypt, Nigeria, Morocco, and Kenya — together account for over 50% of the continent’s total wealth. There are currently 136,000 high-net-worth individuals (HNWIs) with private wealth of US$1 million or more living in Africa, along with 305 centi-millionaires worth US$100 million or more, and 21 US dollar billionaires. Despite a tough past decade, South Africa is still home to over twice as many HNWIs as any other African country, while Egypt now has the most billionaires. Mauritius has the highest wealth per capita in Africa, at US$34,500 per annum followed by South Africa at US$10,970 and Namibia at US$9,320.
Standardization will help government to limit vehicle importation, says Ebrima Jallow (Voice Gambia)
Ebrima Jallow, Director of Standardization at The Gambia Standard Bureau has outlined the importance of standardization saying it will help the government to limit the number of goods that are imported into the country. He said their marketers face a lot of challenges with ministries hence it is always difficult to get the right person on board. For visibility, he noted that the bureau has outsourced its social media platform while he highlighted three divisions that help in their operation this include standardization body the confirmation assessment which help in the inspection, testing and certification based on the public standard and the other is the metrology division who responsible for all industrial and scientific metrology of the country.
Malawi, Mozambique Launch Power Interconnector Project (Voice of America)
Malawi and Mozambique this week launched a power transmission project to help Malawi meet an increasing demand for electricity. Malawi, one of the poorest nations in Africa, lost 30% of its power generation in January after Tropical Storm Ana destroyed its main power station. The new project is expected to generate 50 megawatts for the country when completed. The Mozambique-Malawi Regional Interconnector Project was launched during a visit to Maputo by Malawi’s President Lazarus Chakwera. Chakwera said the project was historic because it will establish a reliable power connection not only between the two countries but also across the Southern Africa Development Community, or SADC, a regional economic organization comprising 16 member nations.
African trade news
Unharmonised taxes blamed for unfair trade practices in EA (The East African)
East African Business Council has raised concerns that variations in tax policies are distorting prices and frustrating intra-EAC trade and investment. At the height of the recent fuel shortage at the pumps in Kenya, government officials pointed an accusing finger at oil marketers, saying they were diverting supplies to the more lucrative Ugandan market.
The officials said suppliers were trucking fuel to neighbouring countries where taxes were lower and prices were not regulated. Private sector players are now alarmed, saying this accusation points to how differences in local taxation policies could cause scarcity of commodities in future.
This week, the private sector umbrella body in the East African Community raised concerns that variations in domestic tax system, including in Value Added Tax, are distorting prices and frustrating the free movement of goods and intra-EAC trade and investment. The East African Business Council (EABC) now wants EAC partner states to start harmonisation of domestic taxes by July 1 even as a tax expert insisted on a clear common tax policy. “We want EAC partner states to commence the process of harmonising domestic taxes by July 1, given that in 2018, EAC partner states adopted EAC Policy for Harmonisation of Domestic Taxes,” said John Kalisa, chief executive of the East African Business Council.
Ugandans Urged to Tap into DR Congo Opportunities (SoftPower news)
Legislators have welcomed the admission of the Democratic Republic of Congo (DRC) into the East African Community (EAC), saying that the development provides huge economic benefits to the country. These, were responding to a statement by the First Deputy Prime Minister and Minister for East African Affairs, Rebecca Kadaga, during plenary on Thursday, 21, on the admission of DR Congo into the EAC. The premier said that admission of DRC gives the region a combined population of over 300 million, which expands the market. “This provides opportunities to produce and sell goods and services. This will enhance the prosperity of our people,” she said. Kadaga added that the development will ensure a global connectivity from the Indian to the Atlantic oceans.
Northern Corridor states ‘monitoring Kenya’s elections’ (The East African)
Northern Corridor members’ states are closely monitoring developments in the Kenyan political environment with fears that disruptions would negatively affect the supply chain along the transport route that is still recovering from the adverse effects of the Covid-19 pandemic. The Northern Corridor is an important transport route to Kenya, Burundi, eastern DR Congo, Rwanda, South Sudan and Uganda. Kenya Private Sector Alliance (Kepsa), the umbrella body for all private businesses in the country, has said it will work with security agencies under the ‘Mkenya Daima’ initiative to deal with any post poll threats along the corridor that could see the port of Mombasa lose business to Dar es Salaam. “So far we don’t have any indications of any disruptions but we are monitoring closely,” Kepsa CEOe Carol Kariuki told The EastAfrican last week.
According to the Northern Corridor Quarterly performance dashboard (October–December) in 2021 the member states’ exports to the world increased by 10 percent in 2021 compared to 2020 and are projected to grow in 2022. The total trade along the corridor stood at around $ 3.17 billion in 2020, with formal trade between Kenya and Uganda accounting for 32 percent, followed by trade between DRC and Rwanda at 19.1 percent of the total trade within the region. Kenya was the single largest exporter.
Issues in cross-border trade in West Africa (The Nation)
Skirmishes between government agencies in Ghana and Ivory Coast against Nigerian businessmen operating in their countries are a common occurrence. At a roundtable discussion on “Cross Border Trade in the West African Sub-Region,” organised by the Centre for the Promotion of Private Enterprise (CPPE), several government officials from sub-Saharan African countries agreed that these skirmishes are unhealthy and inimical to trade and growth in the sub-region.
While calling for greater co-operation among member countries of the Economic Community of West African States (ECOWAS), Consul-General, Ghana High Commission, Ms Samata Gifty Bukari conveyed the need to achieve favourable conditions for inter-trade, stressing that there are several unfavourable tariffs among member countries that inhibit trade.
Africa’s reliance on donors, debts bites as food exporters feud (The East African)
Africa’s reliance on external suppliers for food, oil and financial support could be in for harsher times as Russia’s invasion of Ukraine continues to harm supply channels. A briefing by a group of UN experts says countries in east and west Africa belt are heavily exposed to the rising food prices after main global exporters Russia and Ukraine went to war. The briefing released last week by the UN Task Team for Global Crisis Response Group was supposed to determine how Russia’s invasion of Ukraine earlier in February was going to hurt global supply chains, as well as the access to food. But it found that Africa has most of the 36 countries labelled as most exposed to the price hikes of basic food like wheat, which both Russia and Ukraine sell the most to the continent as it is cheapest.
Why the UN’s New Urban Agenda is needed now (African Business)
Ministers responsible for housing and urban development from across Africa recently met in Nairobi, Kenya, to discuss how best to respond to urbanisation on the continent. In light of the upcoming High-Level Meeting at the UN on 28 April on the implementation of the New Urban Agenda, national expert representatives of the Special African Ministerial Session on Sustainable Urbanisation and Housing made the case for working together to implement the framework in their respective countries. The two-day African ministerial consultations towards the High-Level meeting were organised by UN-Habitat, UNECA, and the African Union with the support from the government of Kenya.
Africa sits in the crossfire of one of the greatest challenges to face our global community. Accounting for only 3% of the world’s carbon dioxide emissions, the continent is one of the most vulnerable to climate change and variability, further aggravated by sub-par infrastructure and disaster response services. The continent’s increasingly urbanised cities will therefore be on the frontline of climate change.
Africa’s Urbanisation Dynamics 2022 - The economic power of Africa’s cities (AfDB)
Urbanisation is one the most profound transformations that the African continent will undergo in the 21st century. Since 1990, the number of cities in Africa has doubled in number - from 3 300 to 7 600 - their cumulative population has increased by 500 million people. Africa’s cities are the most rapidly growing cities in the world; they are the youngest and they are changing fast. Their impact on Africa’s economic, social and political landscape in the coming decades is likely to be profound. Urbanisation, therefore, presents immense opportunities to accelerate progress towards the 2030 and 2063 development agendas and for promoting continental integration in the context of the African Continental Free Trade Area (AfCFTA). For African policy makers, it also entails very important challenges in planning, managing and financing urban growth, both at the local and the national levels. In many places in Africa and beyond, there is a prevaling negative perception of the externalities of urbanisation and its impact on development. This has slowed policy processes to make urbanisation a central part of Africa’s development strategies. This report presents compelling evidence - from 2 600 cities across 34 countries - that urbanisation in Africa contributes to better economic outcomes and higher standards of living. It shows that in most socio‑economic dimensions, Africa’s cities significantly outperform the countries in which they are located, and that the gap between the performance of African cities and the national averages is larger than in many other parts of the world. One of the most underappreciated achievements of African cities over the last 30 years has been that, despite growing by 500 million people, they have maintained their economic performance, providing several hundred million people with better jobs and improved access to services and infrastructure. Positive spillovers from urbanisation are also spreading to rural areas, which benefit from proximity to cities.
African governments maintain infrastructure spending despite Covid-19, rising debt – Deloitte (Engineering News)
African governments maintained spending on infrastructure, despite Covid-19 and rising debt levels. At the same time, West Africa has, for the first time since 2016, led the continent in both the number and value of Infrastructure projects. These are some of the findings of the Deloitte ‘African Construction Trends 2021 Outlook’, that tracks infrastructure and capital projects (I&CP) activity across Africa.
The number of projects in 2021 increased by 20%, from 385 projects in 2020. The total value of projects under construction increased by 30.7%.
Deloitte highlights transport and energy and power projects as having consistently been key contributors to the sectoral mix of projects that are under way, with the real estate sector – most prominently commercial real estate – emerging as a critical sector in recent years.
African Ports and the Blue Economy Nexus: Institutional, Policy and Governance Arrangements (AfDB)
Since the turn of the 21st century African ports have opened to private sector involvement to assume a hybrid public and private character, operating as semi-autonomous economic actors. Like other ports around the world, they are beginning to acknowledge their detrimental environmental impacts and to explore what they can do to assume more environmental responsibility. Their role to facilitate Africa’s economic growth through shipping is important, but their activities impact negatively on Africa’s oceans and freshwater systems. The blue economy concept seeks to address negative impacts to keep oceans and freshwater systems healthy and productive and also harness the immense potential of waterways to support global socio-economic development and growth sustainably. However the blue economy concept is relatively new, especially to African ports and how it is being integrated operationally as part of sustainability efforts has thus far received little attention or investigation.
Global economy news
Development financing crucial to get global economy back on track (UN News)
“Financing for developing is an essential part of the solution,” Deputy Secretary-General Amina Mohammed said on behalf of the UN chief, adding that so far, the global response has fallen far short.
The President of the Economic and Social Council, Collen Vixen Kelapile, brought the attendees up to date on an increasing array of interrelated global crises that underline that no country, rich or poor, is immune to external shocks. He elaborated that the SDGs are facing perhaps the “greatest threat” since their adoption. COVID-19 has exacerbated trends that are “contributing to cataclysmic effects” on development, he said, and the poorest and most vulnerable are impacted the greatest. “Millions of people around the world have been pushed deeper into extreme poverty. Inequality is rising, and the gap between developed and developing countries is growing,” said the senior UN official.
UN calls for urgent action on cascading food, fuel, and financial crises (UNDP)
Governments and international financial institutions must act boldly and urgently to address multiple, mounting crises that threaten to push hundreds of millions more people into hunger and poverty, United Nations Development Programme Administrator Achim Steiner said this week. Russia’s invasion of Ukraine “is causing destruction, loss of life, and a large-scale humanitarian and refugee crisis in Ukraine and the region. Its repercussions are global,” Steiner, speaking on behalf of United Nations Secretary-General Antonio Guterres, told finance ministers and central bank governors at the World Bank-IMF Spring Meetings. Poor and vulnerable communities, already reeling from the impact of the COVID-19 pandemic, have been hit hardest, and the risk of escalating instability and unrest is rising, he said in a statement to the World Bank-IMF Development Committee. “Deep inequalities, together with distribution and logistics problems, mean supply chains have been disrupted. Solving these crises and alleviating human suffering calls for coordinated action across the board,” Steiner said. This will require lifting export curbs to allow surplus food, energy, and fertilizer reach those most in need, providing capital and debt relief to dozens of countries slammed by spiking prices and interest payments, addressing energy market challenges, and reviving international cooperation.
Time for a new digital and data governance path, eCommerce Week highlights (UNCTAD)
Surging cross-border data flows require a balanced global governance approach that maximizes development gains, spreads the benefits equitably and minimizes the risks and harms. “Governance is what will determine the outcome of digital transformation,” said UNCTAD Secretary-General Rebeca Grynspan on 25 April at a high-level session of the organization’s eCommerce Week 2022.
Ms. Grynspan said governance should help ensure data can be harnessed to deal with climate change, pandemics, productivity and urban planning, while protecting the privacy of users and national security and ensuring the benefits from data are shared more equitably. Global internet protocol traffic – a proxy for data flows – has more than tripled since 2017, according to UNCTAD’s Digital Economy Report 2021. But just two countries – China and the US – are reaping most of the benefits, accounting for 50% of the world’s hyperscale data centres. Meanwhile, nearly 3 billion people remain offline, 96% of whom live in developing countries.
Russian invasion of Ukraine disrupts food trade for halal market countries (Salaam Gateway)
Russia’s unprovoked invasion of Ukraine has disrupted food supplies, especially cereals, to major halal food markets given Ukraine and Russia collectively control around 30% of the global wheat trade.
Dutch government figures reflect Russia produced 85.8 million tonnes of wheat in 2020, while news agency Reuters credits Ukraine with producing 24.9 million tonnes. With imports accounting for as much as 90% of food consumption, the Gulf Cooperation Council (GCC) region has been impacted by a steep reduction in grain and sunflower seed exports from Russia and Ukraine and freight rates inflated by the war. “Supply chains have been interrupted and food prices have risen sharply due to the Gulf’s extensive reliance on Russian and Ukrainian staple foods,” said Matthew Hoffer, managing director of Europe and Middle East at OneAgrix, a global agricultural and halal digital trade platform.
“The African continent has been the most affected and harmed by the COVID-19 pandemic and now by the Russia-Ukraine war,” he said. Jebnoun predicted Africa’s collective public debt would rise by at least $300 billion because of the war and the pandemic in addition to the previously planned debts in the African countries’ budgets. “Ukraine is a main exporter of wheat, cereals, sunflower oils and other food products to Africa… We can say Tunisia has average harm following this war, while other countries have harsher effects, such as the Sahel and Sahara Desert countries,” he predicted, indicating key food importers Egypt and Algeria would also suffer. “The worst scenario is that importing countries will be left with no stock for next summer,” said Algerian economist Mourad Kouachi of the University of Oum El Bouaghi. He told Salaam Gateway the worst would come if the conflict continued through the Ukrainian harvest season as that would translate into famine for many poor countries.
Global Finance Ministers and Central Bank Governors Met in DC this Week: Here’s What You Need to Know (U.S. Chamber of Commerce)
Policymakers responsible for almost all the public money in the world met in Washington, D.C. this week for the annual World Bank and International Monetary Fund (IMF) Spring Meetings.
Rarely has close macroeconomic coordination been so badly needed. The world is facing a series of complex, interrelated crises stemming from Russia’s invasion of Ukraine, the ongoing COVID-19 pandemic, and mounting inflationary pressures. These major events have had huge ripple effects on the global economy: a surge of refugees, supply chain disruptions, food price inflation and shortages, sky-high debts, and war-induced economic disasters. This week’s meetings focused heavily on these issues, which were encompassed in the IMF’s new global policy agenda: Repercussions, Response, Resilience.
The most pressing issue is how to address the looming setback in humanity’s fight against hunger. The confluence of wartime disruption, pandemic-induced supply bottlenecks, climate change, and outdated land-use choices are now threatening to undermine the livelihood of millions and creating a very uneven playing field for less developed economies.
Before this week’s meetings, the World Bank Group, IMF, WFP and WTO issued a joint statement raising the alarm about food availability and prices and calling on the international community to urgently support vulnerable countries through coordinated actions including provision of emergency food supplies, financial support, increased agricultural production, and open trade. Food security was also the central subject that Secretary Yellen has chosen to lead on in discussion with G20, G7, and international financial institutions.
Dates fixed for 12th Ministerial Conference in June (WTO)
WTO members agreed on 23 February that the postponed MC12 would take place during the week of 13 June in Geneva, with the exact dates to be determined. The decision at a meeting of the organization’s General Council was taken following the easing of COVID-19 pandemic restrictions in the host country Switzerland. MC12 was originally due to take place from 30 November to 3 December 2021 but was postponed due to the outbreak of the Omicron variant of COVID-19, which led to the imposition of travel restrictions and quarantine requirements in Switzerland and many other European countries.
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Local news
Proposed EU pest regulations to hurt domestic citrus exports, says association (Engineering News)
Newly proposed European Union (EU) regulations threaten the export of oranges from the Southern African region to Europe, according to Citrus Growers’ Association (CGA) of South Africa special envoy to market access and EU matter representative Deon Joubert. Earlier in April, the EU’s Standing Committee on Plant, Animal, Food and Feed (Scopaff) was set to discuss and possibly vote on new and “arguably misinformed” regulations on False Coddling Moth (FCM), which poses a major threat to Southern African orange exports, he says. “If agreed to by member countries, the new regulations will have a devastating impact on orange exports from South Africa to the region,” says Joubert. An imposition of such regulations could result in large gaps in the supply chain and higher prices of oranges for European consumers, at a time when the region faces the real risk of food insecurity owing to the ongoing war in Ukraine.
CGA welcomes efforts to get Durban port, related infrastructure up and running (Engineering News)
Industry association the Citrus Growers’ Association of Southern Africa (CGA) says it is encouraged by the work done by the Department of Public Enterprises (DPE), Transnet and the eThekwini municipality to reopen the Durban port. The arterial Bayhead road has been partially reopened ahead of schedule, while work on the ingoing lanes is proceeding well and is expected to take a few weeks, not months, to complete.
Task force calls for coffee subsidies (Business Daily)
A coffee task force committee has recommended subsidies of farming inputs to farmers to address the high cost of production and increase growers’ earnings. In a report, the committee noted that there is a need to address the high cost of production that has eaten into farmers’ margins. The committee has also recommended improvement of the quality of coffee at the farm level by adopting good agricultural practices and modern coffee processing technologies and promoting efficiency in the management of the crop through co-operative societies. “There is [a] need to address a reduction in the cost of production through appropriate support of growers with quality and affordable farm inputs and planting materials,” said a report of the task force. The task force also wants farmers to be involved directly in coffee marketing to enhance transparency. Currently, growers sell through marketing agencies.
Expensive fertiliser pushes farmers to organic farming (Business Daily)
The sustainability of crop farming has increasingly come into question in the past few weeks as fertiliser prices skyrocket. Supply chain disruptions caused by the Covid-19 pandemic as well as Russia’s invasion of Ukraine in late February have curtailed shipments of key fertiliser components such as Nitrogen, phosphorus, and potassium from the two countries, which are among the world’s biggest suppliers. In face of the global shortages, the price been rising with every passing day, jumping as high as Sh6,000 per 50-kilogramme bag, nearly double the price a year ago. Farmers have been forced to make tough choices — either dig deeper into their pockets to access this indispensable farm input that is crucial for better yields and pest management, or minimise on their costs by cutting on the acreage they put under production.
But for small-scale farmers, the choice is not so black-and-white. Being more dependent on the farming ventures for family sustenance, they need to put every bit of the small acreage they have under production and all the input they can get to guarantee better yields.
Kenya moves to reduce interest on foreign debt (The East African)
Kenya is reviewing the currency composition of its external debt in order to reduce currency volatility that has seen the cost of its dollar-denominated loans increase by two percent in four months. Haron Sirma, director-in-charge of Debt Management at the Treasury, said the proposal is aimed at reducing foreign exchange costs. “On the external debt stock, we seek to match the currency composition with the country’s foreign exchange holdings,” said Mr Sirma. “The characteristics of a country’s external debt by currency should mirror the foreign currency inflows through exports and remittances. This minimises forex costs through exchange rate movement.” Kenya borrows externally in five major currencies — 67 percent in dollars, 19 percent in euros, six percent in Japanese yen, six percent in Chinese yuan and two percent in pound sterling. Last year, Kenya’s external debt was $36.9 billion, of which dollar-denominated loans stood at $24.72 billion, according to the Treasury.
Kagame, Museveni hold bilateral talks in Kampala (The East African)
Rwandan President Paul Kagame and his Ugandan counterpart Yoweri Museveni on Sunday held bilateral talks in Kampala. The two leaders agreed to push for regional peace and stability by jointly addressing the security situation in the Democratic Republic of Congo, as part of the East African Community. The talks came on the backdrop of last week’s meeting in Nairobi by the bloc’s Heads of State in which they agreed to set up a regional military force bent on ending decades of insecurity in eastern DRC, caused by militia groups. DR Congo in early April signed the treaty of accession into the EAC, becoming the seventh member of the bloc. President Kagame did not attend the Nairobi meeting last week where leaders discussed regional security, but was represented by Rwanda’s Foreign Affairs Minister Vincent Biruta.
Malawi, Mozambique sign trade pacts (Nyasa Times)
Malawi and Mozambique have signed two important trade pacts aimed at unlocking and boosting trade of the two countries.
The agreements have been signed between the Agency of Promotion and Investments and Appiex IP of Mozambique and the Malawi Investment and Trade Centre as well as the Mozambique Cereals Institute ICM and the Agricultural Development and Marketing Corporation (ADMARC). Chakwera said Malawi imports goods worth US$300 million annually and many of them are handled at Nacala and Beira ports but not much has been done to enhance bilateral trade between the two countries.
GEPA to establish sector working groups to boost Non-Traditional Exports (BusinessGhana)
Ghana Export Promotion Authority in efforts to increase earnings from the Non-Traditional Exports (NTEs) is setting up various sector working groups under the auspices of the Ministry of Trade and Industry (MOTI). The move is in line with the implementation of the National Export Development Strategy, which identifies various interventions and structures for successful operation of the strategy. One of the structures to be established is the sector groups which would take care of the priority sectors that have been outlined.
“GEPA’s role is to coordinate the implementation of the activities and actions of the Strategy and for this reason ware happy to inform you that the NEDS Coordination Secretariat has been set up at GEPA and implementation of the NEDS has effectively commenced,” he said.
Effective implementation of the interventions for the 17 prioritized NTE products identified in the Strategy will require collaboration of key implementing partners centred around the product sector groups, he said.
African trade news
Private sector participation is essential to improving continental trade in Africa (TheCable)
Intra-African trade remains low despite efforts from the African government to improve continental trading capacity. In the recent decade, intra-African trade accounted for about 12 percent of Africa’s total trade. One of the leading causes of low continental trade is the absence of a strong and efficient private sector. While the current trade framework focuses on lowering trade barriers, increasing the efficiency of the private sector’s productivity can improve Africa’s trading performance. The current framework necessitates a need to shift toward integrative private sector participation. The private sector bears the main brunt of the trade constraints. While the public sector, through the government, negotiates and signs trade agreements, the consequences of the private sector play an integral part in African trade. It is why African governments must operate systems viable for private sector participation. Poor infrastructure reduces by 40 percent in Africa, and per capita output grew by 2 percent. This lack of infrastructure capacity means that the private sector cannot compete at the highest level in terms of productivity. Governments in Africa must seek new ways to attract funding for infrastructure projects. For example, infrastructure bonds have been successfully utilised to fund South Africa and Kenya road renovations. These funds might be used to help finance infrastructure projects all over Africa.
Dr. Kpodar Calls On AU To Champion African Continental Common Currency Agenda (News Ghana)
Dr. Chris Kpodar, President of Solomon Investment Ghana Limited, has called on the African Union (AU), to champion the adoption of an African Continental Common Currency (ACCC) agenda, saying, a common currency depicts ones’ economic power. Speaking on the topic: “The justification for African Continental Common Currency backed by resources, not by dollar,” at the Ghana News Agency-Tema Industrial News Hub Boardroom Dialogue, Dr. Kpodar noted that African countries must start setting the pillars for the ACCC Agenda. Dr. Kpodar said the use of Dollars, Euro, Pounds, and CFA respectively by African Anglophones and Francophones was an indication of their strings attached to their former colonial masters who were still controlling their affairs through their currencies. He said, “it is time to achieve economic independence”.
Are events overtaking the long-delayed Eco in West Africa? (African Business)
With the latest 2020 launch deadline postponed because of the onset of the Covid-19 pandemic, and no new timetable in place, there are concerns about whether the eco continues to be a viable proposition. This is despite the many advantages a common currency offers the 15 members of the Ecowas trading bloc. Removing trade and monetary barriers and meeting these targets across the region would have significant benefits for the countries involved. Meeting the convergence requirements would instil greater fiscal discipline in the region and provide a mechanism for unlocking improved transactional efficiencies and ensuring more predictable monetary policy and inflation management as well as reduced risk. Having a common currency would remove trade and monetary barriers, boosting economic activity and economic upliftment in this region of approximately 385 million people. This, in turn, would be a catalyst for new investment in the region. But with no new date set for the launch, there are concerns the project may be drifting.
Africa faces hard knocks as rich countries take manufacturing back home (The Conversation Africa)
The global economic crisis triggered by the outbreak of the COVID pandemic in 2020 and Russia’s invasion of Ukraine in February this year has intensified the risk of declining trade integration between countries. A process referred to as the deglobalisation of trade. The pandemic sent shocks through supply chains across the world. As a result, companies in some advanced economies have started to prioritise bringing production that was previously outsourced to Asia back home – or closer to home. The expectation is that this will avert ongoing – and future – supply-chain disruptions, ensuring a steady and reliable supply of goods.
Russia’s invasion of Ukraine has exacerbated global supply shortages after the pandemic. It is also further fuelling expectations of major reduced reliance on global supply chains by businesses. This is particularly true of companies in Europe and the US.
This trend risks adding additional strain to economies in Africa on top of the current economic pain from soaring food and fuel price inflation imposed by the war in Ukraine. A deglobalising world poses serious risks for Africa. This has been confirmed by findings in a recent World Bank report. It shows that reversing globalisation through reshoring of value chains has the potential to push an additional 52 million people into extreme poverty. Those living in Sub-Saharan Africa would be the hardest hit.
African Development Bank Group chief garners strong global support for Africa (AfDB)
African Development Bank Group President Dr Akinwumi Adesina concluded a three-day official visit to Washington DC on Saturday. Alongside the Spring Meetings of the International Monetary Fund and World Bank, the visit included several bilateral engagements with stakeholders on African development. Adesina garnered broad strong support for a robust 16th replenishment of the African Development Fund, the Bank Group’s concessionary lending arm that supports Africa’s low-income economies. Replenishment efforts continue through October, when partners are expected to make their pledges. During bilateral meetings, United States Assistant Treasury Secretary Alexia Latortue said the African Development Fund was critical to Africa’s the development landscape. She assured the Bank President that the US remains a strong and proud supporter of the Fund, which has strategic focus and delivers impact. Latourte applauded the leadership of Dr. Adesina in developing the Bank’s bold African emergency food production plan to avert the looming food crisis due to the Russian war in Ukraine and assured of the strong partnership of the US Treasury Department on the plan.
African Development Bank Group President Dr Akinwumi Adesina says “Africa must prepare for the inevitability of a global food crisis.” He was speaking about Africa’s priorities, as a guest at the Atlantic Council’s Africa Center on Friday. Fielding questions from the Council’s Africa Center Chair, Ambassador Rama Yade; Senior Fellow Aubrey Hruby; and Washington/UN correspondent for Jeune Afrique and The Africa Report, Julian Pecquet, the Bank chief called for an increased sense of urgency amid what he described as a once-in-a-century convergence of global challenges for Africa. According to Adesina, the continent’s most vulnerable countries had been hit hardest by conflict, climate change and the Covid-19 pandemic, which had upended economic and development progress in Africa. He said Africa, with the lowest GDP growth rates, had lost as many as 30 million jobs on account of the pandemic.
Africa’s Post-Pandemic Economic Recovery: Insights from Ghana and Nigeria (Carnegie Endowment for International Peace)
The economic impacts of the COVID-19 pandemic have been severe for parts of the African continent, exacerbating existing fiscal and socio-economic challenges. Although African economies are slowly recovering, that recovery is constrained by low vaccination rates, tight fiscal space, unequal access to external finance, and increasing debt vulnerabilities. The disruption of global trade flows and commodity markets by the situation in Ukraine is adding more pressures. Still, African governments have undertaken a wide range of initiatives to provide relief to their citizens and position their economies on the path to resilience and prosperity.
Private capital flow into Africa more than doubled from 2020 to 2021 (Quartz)
Investors pumped record amounts of private equity and venture capital into Africa last year, according to a new report by the African Private Equity and Venture Capital Association (AVCA.) The ‘African Private Capital Activity Report’(pdf), released on 19 Mar., found that the total value of private capital deals in Africa reached a record high of $7.4 billion in 2021, representing a 118% increase compared to the $3.4 billion registered in 2020. The record amount was almost double the $4 billion that was invested on an annual average basis in Africa between 2016 and 2020. “The report highlights how Africa’s economy continues to be fertile ground with attractive investment opportunities for investors in search of yields,” said Abi Mustapha-Maduakor, CEO at AVCA.
How the G-7 can support Africa’s climate agenda (Jordan Times)
One of the more concrete outcomes of last November’s United Nations Climate Change Conference (COP26) is South Africa’s Just Energy Transition Partnership (JETP). Under this plan, South Africa will receive $8.5 billion in grants and loans from the United States, Germany, France, the United Kingdom, and the European Union to support its transition from coal-fired power plants to cleaner energy sources. Details of the JETP’s implementation are still scant. But the agreement already promises to be a template for how wealthy countries, the world’s largest historical emitters of greenhouse gases, can support the climate agenda of the lowest emitters, most of which are in Africa and are bearing the brunt of the climate emergency. That makes the JETP worthy of close attention as June’s G-7 leaders’ summit in Germany approaches.
U.S. Chamber of Commerce Showcases Africa Engagement, Hosts Tanzania President, and Oversees Over Half a Billion Dollars in U.S.-Africa Trade Commitments (U.S. Chamber of Commerce)
Today, the U.S. Chamber of Commerce hosted H.E. Samia Suluhu Hassan, President of the United Republic of Tanzania, culminating an impactful week during which the U.S. Chamber’s U.S.-Africa Business Center hosted official delegations from South Africa, Kenya, Nigeria, Ghana, Tunisia, and Congo. During President Hassan’s visit, the U.S. Chamber oversaw the signing of over $500 million in new investments in Tanzania, including the signing of a U.S. Chamber Memorandum of Understanding (MOU) to expand trade and investment between the U.S. and Tanzania, one of the world’s fastest growing economies. The MOU with the Tanzania Trade Development Authority will build business linkages between the U.S. and Tanzania through the countries’ mutual commitment to share investment and trade information, co-host events including public- and private-sector trade policy dialogues, and collaborate on trade and investment forums and conferences, among other measures.
Global economy news
New UNCTAD figures show COVID-19 boost to e-commerce sustained into 2021 (UNCTAD)
New UNCTAD figures show that the significant uptick in consumer e-commerce activity fuelled by the COVID-19 pandemic was sustained in 2021, with online sales increasing markedly in value, despite the easing of restrictions in many countries. The average share of internet users who made purchases online increased from 53% before the pandemic (2019) to 60% following the onset of the pandemic (2020/21), across 66 countries with statistics available. But the situation prior to the pandemic and the extent of the boost to online shopping experienced vary between countries. Many developed countries already had relatively high levels of online shopping (above 50% of internet users) before the pandemic while most developing countries had a lower uptake of consumer e-commerce
eCommerce Week: Better digital governance needed to balance data opportunities and risks (UNCTAD)
The COVID-19 pandemic has made digital technologies and an internet connection even more important in our daily lives, as people and companies have moved even more online to work, learn, socialize, shop and do business. But not everyone is reaping the benefits, especially the 2.9 billion people still without an internet connection. A heavier reliance on digital tools also poses risks to the environment, as they generate more CO2 emissions and e-waste. Bridging the digital divide and tackling the risks of digitalization are at the heart of UNCTAD’s eCommerce Week, happening from 25 to 29 April.
The digital transformation that was accentuated during the pandemic pointed to the unequal opportunities that existed between the ones that could and the ones that could not take advantage of digital solutions to cope with the negative effects of the pandemic – be it in the health care area or in the economic field. This has immediately raised the awareness among the governments around the world that something needs to be changed. We cannot continue on the same trajectory because that will just result in even wider divides, even wider inequalities. But unfortunately, it’s going to be very difficult for individual governments to deal with all these issues on their own. We need to come together. This is the time when the UN should do its job by bringing all the forces together to develop something that’s not good only for individual countries but for the planet as a whole.
What drives structural transformation in low-income countries? (WEF)
Least Developed Countries (LDCs) have historically faced various binding constraints to their sustainable development. These range from low productivity and limited capacity in manufacturing and other productive sectors, to a lack of economic diversification, high levels of dependence on commodities and minerals, low investment rates and limited government capacity to implement growth-oriented structural policies. Rarely has a country evolved from poor to rich without sustained structural economic transformation from an agrarian or resource-based economy towards an industrial or service-based economy. For this reason, the Istanbul Programme of Action (IPoA), which ran from 2011-2020, prioritised the building and diversifying of productive capacity in LDCs.
Helping Countries Cope with Multiple Crises (World Bank)
This year’s Spring Meetings of the World Bank Group and International Monetary Fund took place at a time of overlapping global crises. The war in Ukraine has compounded concerns about inflation, COVID-19, climate change, and debt, with many other countries also facing fragility and conflict. The chair’s statement issued on Friday by the Development Committee, a ministerial-level forum that represents 189 member countries of the two organizations, noted that the impacts will be felt most in low- and middle-income countries, especially by their most vulnerable people, including women and children. The statement added that economic recovery is at risk amid geopolitical tensions, with investment, trade, and growth affected, even as countries face further risks from the pandemic and uneven deployment of vaccines.
BRI is a boost for economic development, not a debt trap (China.org.cn)
The Belt and Road Initiative (BRI) has showcased resilience and vitality in boosting economic development amid the COVID-19 pandemic and assisted participating countries in stabilizing their economies, officials and experts said Thursday. Over the years, several low-income and emerging economies have been experiencing daunting debt risks owing to the COVID-19 pandemic and global political uncertainties. As a result, it is necessary to adopt appropriate measures to sort out the debt repayment issues of such countries with concerted efforts from all parties, said Zhou Xiaochuan, former governor of China’s central bank, at the Boao Forum for Asia Annual Conference 2022.
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Removal of poultry import tariffs will destroy domestic jobs, says SAPA (Engineering News)
Requests by the Association of Meat Importers and Exporters (AMIE) to suspend existing tariffs on the import of chicken in South Africa, and not impose any new tariffs for the next three years, is “superficially appealing, but economically dangerous”, says broiler organisation South African Poultry Association (SAPA) head Izaak Breitenbach.
“Consumers will be the ultimate losers if tariffs on chicken imports are removed,” he states, saying such a move will have “no impact at all” on the main drivers of food price inflation, which are the surge in the cost of feed, fuel and fertiliser prices, as well as the war in Ukraine. These added inflationary pressures come at a time when prices were already rising because of the impact of the Covid-19 pandemic on global trade and the price of grains which make up nearly 70% of the input costs for poultry producers.
SAPA believes removing the tariffs will only serve to benefit the importers AMIE represents, whose revenues and profits have been hit by decreases in import volumes over the past three years.
The WCO conducted a mission from 14-17 and 23 March 2022 under the auspices of the by the United Kingdom’s Her Majesty’s Revenue & Customs (HMRC) supported Trade Facilitation Capacity Building Programme to further strengthen capacity within South African Revenue Authority (SARS) The WCO team zoomed in primarily on capacity building to conduct a Time Release Study (TRS) at the seaport in Durban and to implement the WCO Immediate Release Guidelines at the Johannesburg airport cargo area in order to align with the Trade Facilitation Agreement (TFA) Article 7.8 on expedited shipments. The mission built on virtual capacity building provided to SARS in these two areas under the Trade Facilitation for Middle Income Countries (TFMICs) programme – previously supported by the United Kingdom’s Foreign Commonwealth & Development Office.
The SARS leadership formally welcomed the opportunity to continue the partnership with the WCO for technical assistance and capacity building under the next phase of the HMRC Programme ‘Accelerate Trade Facilitation’ (2022-2025). It was noted that trade facilitation initiatives would not only benefit the South African economy but the entire southern region of Africa – also considering that other partner countries of the Programme include Zambia, Eswatini and Lesotho.
SA, Botswana deepen bilateral relations (SAnews)
President Cyril Ramaphosa has called on African countries to put the continent on a new trajectory of progress, prosperity and self-reliance.
The President said that Africa’s focus must be on strengthening health systems across the region and the continent, and on improving its capabilities in areas such as vaccine and medical supplies manufacturing.
The President said this as he delivered opening remarks during the plenary session of the fifth Bi-National Commission (BNC) between South Africa and Botswana in Pretoria on Friday. “This BNC is an opportunity to further deepen our cooperation in many areas including infrastructure development, energy production, mining, defence, health, transport, migration, and information and communication technologies,” Ramaphosa said.
The President emphasised that it is critical to consolidate the work that has already been done within the existing areas of cooperation and explore further areas of collaboration and cooperation.
Animal feed prices stay high on maize imports nod delay (Business Daily)
The price of animal feeds is expected to rise following delays in publishing changes to GMO rules governing the importation of yellow maize in the Kenya Gazette, hampering the purchase of the produce by millers amid the rising cost of the commodity. The government announced last month that it had lowered the requirement on the purity of yellow maize to be imported by processors to 99.1 percent from 100 percent, meaning that imports would be allowed to have traces of genetically modified organisms (GMO).”In March 2022, the working committee convened and approved the proposal to change the purity level as an immediate measure to mitigate the dwindling source of raw materials,” said Joseph Karuri, chairperson of the Association of Kenya Animal Feeds Manufactures. “Unfortunately, the notice has not been published and neither measure(s) have been undertaken to resolve the crisis in the livestock feed sub-sector almost a year since we raised the red flag.”
Manufacturers have refused to import the produce under the current total GMO purity requirement for fear that the shipments will be confiscated by Kenyan authorities since it is difficult to find stocks that are free from genetic modification.
Mitumba dealers plan centre for sorting exports (Business Daily)
Dealers in second-hand clothes have petitioned the government to set up a sorting centre in Kenya for re-exports, opening a fresh battlefront with local manufacturers. The sector lobby, the Mitumba Association of Kenya says a sorting facility will cut costs incurred along the supply chain as they target high-demand markets. The sector launched a report on Thursday that shows that Kenya is well-positioned geographically to act as a global hub linking other markets throughout Africa to the US, and Europe. “An African hub would have considerable benefits… This would create job opportunities and increase the export of textiles to the largest African markets,” the report read in part. “These benefits would be enhanced if further sorting centres could be opened, improving the efficiency of the supply chain.”
The report titled Global Production Networks of the Second-hand Clothing Industry-Impact on Africa was authored by Dr Anuja Prashar of the Mitumba Institute and Research Centre of Kenya.
Ugandan Business Players Explore EAC Opportunities at PSFU Dialogue (Chimp Reports)
Private Sector Foundation Uganda (PSFU), the apex body of the private sector in Uganda, in partnership with the Mastercard Foundation and Young Africa Works Uganda, held a high level Private-Public Policy dialogue on the status of East Africa Community integration on investments and job creation, to get the young person’s outlook on the status of the EAC and an overview on the future.
“There are existing business opportunities that can be harnessed to support the growth of the economy and job creation. Presently, the ecosystem, the companies and SMEs continue to be negatively affected by some market restrictions which hinder their ability to expand and grow and create both direct and indirect work opportunities to the youth in the value chains.”
Nacala Corridor To Spur Economic Growth (Malawi Broadcasting Corporation)
President Dr Chakwera says the signing of the Nacala Development Corridor Agreement, the Railway Agreement and the Road Transport Agreement between Mozambique and Malawi will boost economic operations in the two countries. He said the port is helping to spur and foster economic development between the two countries.
“It is pleasing to note that since its completion, the developments made at the port are helping to increase capacity and efficiency in handling cargo and they are providing a cost-effective avenue for transporting people, goods and services,” said Dr Chakwera.
Transporters lament trade facilitation setbacks on transit corridor (GhanaWeb)
The incidence of extortion and other illegal, unpleasant activities of some security officers towards cargo truckers on the transit corridor seem to persist, despite many efforts by stakeholders within the port and shipping industry to put an end to them. The latest report on such activities was made by the Executive Secretary of the Joint Association of Port Transport Unions (JAPTU), Ghana, Ibrahim Musah, on the Eye on Port program, while discussing the state of the haulage sector in Ghana.
“When a transit truck breaks down, you are to report to the nearest customs station where they deploy an officer to inspect the problem and write a report. This is supposed to be done without a fee, but in practice some customs officers are beginning to make it a key part of their regulations, to charge GHC 500- GHC 1000 just before the documents are released,” he bemoaned.
Prices of Poultry products set to go up (GBC Ghana Online)
Chairperson of the Greater Accra Poultry Farmers Association, Gifty Rodor, has appealed to the public to bear with farmers as they plan to increase prices of poultry products. Speaking with GBC News, Madam Rodor said the measure has become necessary due to the increasing prices of inputs. Appeals to the government to come through for poultry farmers with some subsidies on their raw materials are yet to be met. Madam Rodor said the farmers are “left with no option, but to increase prices to continue to stay in business.”
Export Strategy sector group committee inaugurated (BusinessGhana)
A sector group and governance structure for the successful implementation of the National Export Development Strategy (NEDS) has been inaugurated in Accra. The governance structure comprises the Inter-Ministerial Oversight Committee, the Steering Committee, the NEDS secretariat and the sector group. A media release issued in Accra on April 14, 2022 said that the NEDS, spanning 10 years (2020-2029), sought to diversify and grow the Non-Traditional Export (NTE) sector of the economy and employ a private-sector-driven approach. It is expected to give a significant boost to Ghana’s export volumes by growing NTEs from US$2.8 billion (2020) to US$25.3 billion by 2029. The initiative was unveiled by the Ghana Export Promotion Authority (GEPA) under the auspices of the Ministry of Trade and Industry.
Speaking at the inauguration, the Deputy Minister of Trade and Industry, Herbert Krapah, said the realisation of the target in the next decade demands strong collaboration between key implementing partners and players within the NTE sector. He said the creation of the sector group to lead and implement the strategy for the 17 priority products areas was timely with the full implementation of the Africa Continental Free Trade Area (AfCFTA).
Importers condemn CET implementation (New Telegraph)
Stakeholders have lamented that government was overheating the port economy with unfavourable multiplier effects on the national economy. Nigeria Customs Service (NCS) had recently explained that in line with the Finance Act and the National Automotive Policy, it had retained a duty rate of 20 per cent for used vehicles as was transmitted by ECOWAS with a NAC levy of 15 per cent. Also, the Service noted that new vehicles would also pay a duty of 20 per cent with a NAC levy of 20 per cent
Miffed by the new policy, a former President of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said that the introduction of regular wrong policies would continue to have negative impact on national growth.
Also, the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) National President, Otunba Frank Ogunojemite, argued that by the new levy, the Nigeria Customs Service had shown a high level of inconsistency capable of betraying the existing trust and undermining the cordial working relationships with freight forwarders and importers. Ogunojemite said that the association was strongly against the collection of NAC levy on used vehicles, saying that it should be limited to brand new vehicles only.
Nigeria will become West Africa’s highest cocoa producer, exporter by 2027 — CFAN (Vanguard)
The Cocoa Farmers Association of Nigeria (CFAN) has assured that Nigeria will in the next five years become the highest cocoa producer in West Africa. It equally said that cocoa production will be also be increased from 340,000 metric tonnes to 500,000 metric tonnes by 2024.
The National Chairman of CFAN, Comrade Adeola Adegoke, who this in Akure during the free distribution of cocoa Good Agricultural Practices (GAP) handbook to smallholder cocoa farmers, stressed the commitment to increase cocoa production in conjunction with other value chain stakeholders. He pointed out that “the target would make the country produce the best quality cocoa beans in line with internationally acceptable best practices.”
We are interested in strengthening trade, investment with Nigeria, says Cote d’ivoire (Sun News Online)
The Ambassador of Cote d’Ivoire to Nigeria, Mr Kalilou Traore has said that his country is interested in strengthening trade and investment with Nigeria due to the peculiarity in both country’s economy. The Ambassador stated this in Abuja, yesterday, at the official launch of the 2022 made in Nigeria exhibition that would be holding in Abidjan in June.
Kalilou explained that the initiative of made in Nigeria exhibition has grown into a strong platform for the development of both country’s economy through the creation of lots of business opportunities.
“As a reminder trade between Cote d’Ivoire and Nigeria represents approximately $ 1.4 billion, mainly in petroleum products. The significant potential of trade in industrial products and services between the two countries remains to be filled with regard to the production and consumption capacities of the countries within the framework of the regional common market but also of the continental market which is being set up.”
African trade news
Studying on Trade - Carrying Infrastructure Gap in Southern African Development Community (SADC) (Afreximbank)
The overall objective of this assignment is to analyse the trade-carrying infrastructure gaps across one pilot African region and propose priority investments to fill these gaps. To do this, the report first quantifies existing and future intra-regional trade flows along the main transport corridors in the Southern African Development Community (SADC) region and ranks the importance of each corridor for future intra-Africa trade. Next, it assesses the condition, capacity and competitiveness of trade-carrying transport and logistics infrastructure, notably the main seaports, border posts, railways and roads that are the backbone of the main corridors traversing the region. It also analyses secondary and informal routes, highlighting the findings pertinent to these corridors in the SADC region. The assessment identifies major gaps in the trade-carrying transport and logistics infrastructure on each of the main transport corridors and frames the priority interventions on each regional transport route. Finally, the report develops a programme of priority interventions and a pipeline of proposed projects.
EAC boss rallies youth to take advantage of DR Congo market (IPPMedia)
Mathuki made the remarks recently when addressing virtual press conference from his offices in Arusha, Tanzania. His comments came barely few weeks after DR Congo President Félix Tshisekedi signed the Treaty of accession by his country to the EAC. DR Congo’s entry now makes EAC a seven-member bloc. Mathuki who was briefing regional journalists on the initiatives the Secretariat put in place for DR Congo’s integration, in the upcoming months, indicated that the youth in the region now have a market of about 300 million people to tap and grow their businesses. Irrespective of the challenges that may come with an expanded community, he said, there is a huge market opportunity.
Sector mismatch widens agri-SME financing gap (The East African)
Agricultural small and medium-enterprises (agri-SMEs) in sub-Saharan Africa are grappling with a $74.5 billion (or 83 percent) annual financing gap, says a survey by Commercial Agriculture for Smallholders and Agribusiness (Casa) programme. The survey, The state of the agri-SME sector – Bridging the finance gap, revealed a disproportionate financing pattern favouring a small number of “top of the market” and “possibly adequately served” tier of agri-SME players. According to the analysis, more than half of the total financing is supplied by local commercial banks, which typically invest in more mature agri-SMEs — for instance established aggregators and local processors, such as maize or rice millers, serving regional or national markets.
“What’s needed is a more coordinated approach to ensure that whatever sub-commercial finance is available is applied to the best candidates among agri-SMEs.”
Grain shortfall from Ukraine war exacerbates food insecurity in Africa (RFI)
In an effort to cover wheat shortages following Russia’s invasion of Ukraine, African countries are looking to other sources, or trying to use local-based alternatives in order to provide bread each day. However this is also causing a spike in food prices. “What is coming immediately is an increase in price, which will have an impact on the government’s fiscal budget,” says Kibrom Aboy, research fellow and Egypt country head for the International Food Policy Research Institute (IFPRI) in Cairo. “This means an increase in price on wheat and other products, and has impact on poor households too.”
Energy storage becoming more relevant to Africa’s energy transition (ESI Africa)
Ever-decreasing costs of renewable energy generation are already introducing an energy transition across Southern Africa, especially as energy storage becomes more viable. This was some of the insight provided at a recent ATA Insights open workshop into Southern Africa as the land of renewables and storage opportunities. Albie Alant, associate director at PwC, said
“We see the requirement for more renewable energy and in order to service and support the large industrials and mines, storage becomes very relevant to manage baseload requirements and energy needs of entities,”
He said PwC did not see new investments being made into fossil fuels going forward: “The move is away from that, with large pools of capital being earmarked to fund renewable energy.” While slow policy formation has limited the integration of renewable energy into national electricity grids, he said South Africa’s successful REIPPP programme has been very successful in starting large scale procurement of renewable energy for the country.
The African Development Bank Group’s Annual Meetings in May will focus on the impact of climate change on Africa and the need for a just energy transition on the continent, the Bank Group’s Secretary General said on Wednesday.
Professor Vincent Nmehielle said the theme, Achieving Climate Resilience, and a Just Energy Transition for Africa, was chosen to provide a framework for the governors of the Banks to share their experiences and engage in addressing climate change and energy transition challenges, as well as their policies and measures to deal with them. “Governments will be able to show what their countries have done in this regard,” the Secretary General said. A key highlight during the Bank Group’s Annual Meetings will be a commemoration of the 50th anniversary of the African Development Fund, the Bank Group’s concessional lending arm.
Miners gather amid surging demand for critical minerals and fiercely rising ESG demands (Engineering News)
Amid the global transition to renewable energies and the effects of strong commodity prices and supply crunches, there is a scramble to ensure security of supply of critical and battery minerals in Africa. These factors heighten the importance of African mining and the role of the Investing in African Mining Indaba – to be held at the Cape Town International Convention Centre from May 9 to 12 – states Indaba organiser Hyve Group head of content Tom Quinn.
Seychelles Reconnects with Trade Partners at WTM Africa (eTruboNews)
Present at the World Travel Market (WTM) Africa event, Tourism Seychelles representatives and a small delegation of local partners were in Cape Town to reconnect with trade partners from the South African region. The 3-day international fair, which took place at the (CTICC) Cape Town International Conference Centre between April 11-13, 2022, was the first in-person event for the region since the pandemic.
Speaking of the event Christine Vel, the director for South Africa said that the fair was a successful one for the destination. “We are quite satisfied with the outcome of the WTM Africa as we have seen that our trade partners still had much enthusiasm and interest in the destination,” said Ms. Vel.
Launched in 2014 under the Africa Travel Week umbrella, WTM Africa is a key trade Rendezvous for the travel industry. The 2023 edition of WTM Africa will take place between April 3-5, 2023.
Global economy news
Greater international cooperation needed on subsidies data, analysis and reform — report (WTO)
The report, “Subsidies, Trade, and International Cooperation”, cites the importance of broad-based international cooperation on subsidies in order to bring greater transparency, openness and predictability to global trade. “Subsidies appear to be widespread, growing, and often poorly targeted at their intended policy objectives,” the report notes. “Beyond raising economic efficiency concerns, this situation is spurring the use of unilateral trade defense measures, eroding public support for open trade, and contributing to severe trade tensions that impede progress on other global trade priorities.” “Governments should work expeditiously to clarify and strengthen international disciplines around subsidies while recognizing the important roles that well-designed subsidies can play in some circumstances,” the report adds.
Global supply chains at work: A tale of three products to fight COVID-19 (OECD)
The goods needed to vaccinate, protect and test during the COVID-19 pandemic are produced across many different countries. This brief tells the tale of three products ‒ vaccines, face masks and tests ‒ and highlights the role of trade in the fight against COVID-19. International markets and global supply chains played a pivotal role during the COVID-19 pandemic: first, by helping countries avail themselves of the goods needed to address the pandemic; second, by providing a means to ease temporary supply constraints; and third, by enabling access to key components to ramp up production to meet surging demand.
The fight against COVID-19 remains an ongoing and global challenge. Global supply chains played a key role in allowing countries to: i) avail themselves of essential products when they may not have had the capacity to produce them; ii) to mitigate temporary supply shortages; and iii) to ramp up production of key components. Supply chains proved to be both agile and resilient in the face of unprecedented surges and changes in demand for products needed to fight COVID-19.
All countries are facing challenges in ensuring that their populations are vaccinated, protected and tested, but not all countries produce all the goods needed to do this. Trade enables access to the final and intermediate goods that underpin their supply. Open markets, transparency and trade facilitation can ensure greater ease of access to these products.
2021 supply shortages: Year of waiting followed by year of anxiety (DW)
There were a lot of hopes for this year, following the utter economic carnage unleashed by the COVID-19 pandemic and ensuing lockdowns in 2020. The global economy was expected to boom with the arrival of effective vaccines and the subsequent easing of restrictions. Global growth did roar back, but soon lost its momentum. A sudden demand for goods coupled with chaos in the shipping industry threw global supply chains off track, taking the steam off the recovery.
This has meant that people and businesses around the world are having to contend with shortages of just about everything from bikes to cars, toys to smartphones, and reinforced concrete to computer chips. Waiting periods have become painstakingly long. The problem is that the strong recovery in demand has been “bumping up against physical constraints of ports,” Coleman Nee, senior economist at the World Trade Organization (WTO), told DW. He added that even air freight, used to carry goods such as semiconductors, has struggled to keep up with demand due to travel restrictions.
COVID-19 assistance to developing countries lifts foreign aid in 2021 – OECD (OECD)
Foreign aid from official donors rose to an all-time high of USD 179 billion in 2021, up 4.4% in real terms from 2020 as developed countries stepped up their help for developing countries grappling with the COVID-19 crisis, according to preliminary data collected by the OECD. Development Assistance (ODA) provided by members of the OECD’s Development Assistance Committee (DAC) in 2021 included USD 6.3 billion spent on providing COVID-19 vaccines to developing countries, equivalent to 3.5% of total ODA. Excluding ODA for donated COVID-19 vaccines, ODA was up 0.6% in real terms from 2020.
“OECD countries have once again shown that even in times of crisis they will step up and provide support to more vulnerable countries and people,” OECD Secretary-General Mathias Cormann said, presenting the new data. “While the effort last year was another significant step up in development support, there continues to be much more to be done. With the world now hit by a new humanitarian crisis following Russia’s unprovoked war on Ukraine, we must make additional efforts to help those developing countries that will be hardest hit by supply shortages and higher prices for food and key commodities.”
eCommerce Week: UN convenes leading global forum on digital economy (UNCTAD)
With over 60 high-level speakers, 100 sessions and thousands of participants, UNCTAD’s eCommerce Week slated for 25 to 29 April brings together UN experts, governments, business, civil society groups and academics focused on innovative solutions for development in a digital world. With the theme “Data and Digitalization for Development”, the event will address the pressing need for global dialogue, debating with a wide range of United Nations and government representatives as well as private sector and civil society actors how the digital world is managed and how its governance will help to bridge the digital divide and support sustainable development.
eCommerce Week, as the global forum on development and the digital economy, aims to highlight the urgency of global data and digital governance to bridge the digital and data divides, fight inequality and support developing countries to benefit from the digital economy.
“The pandemic has exposed the huge and growing digital and data divide that cuts off many developing countries from health-care solutions, financial access, e-commerce, technology skills and new growth sectors. Now is the time for a new path with new governance that makes the digital world far more inclusive, equitable and beneficial,” UNCTAD Secretary-General Rebeca Grynspan said.
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Minister Mondli Gungubele: Signing ceremony of the United Nations Sustainable Development Cooperation Framework (South African Government)
The framework we are signing today enhances our cooperation and commitment of the United Nations in continuing to support South Africa’s developmental agenda. It is also a way to show the realisation of the call made by member States after adopting the 2030 Agenda for Sustainable Development and Sustainable Development Goals (SDGs) in 2015, that the United Nations (UN) Development System needs to reform in order to achieve the sustainable development agenda. The call was to reposition the UN with a stronger focus on a better-defined collective identity as a trusted, reliable, cohesive, accountable and effective partner to countries in delivering the 2030 Agenda.
The United Nations Strategic Development Cooperation Framework (UNSDCF) for 2020-2025 is a vital instrument to drive the principles of the UN reform at a national level. It is also a partnership and accountability framework not just with government but with the broader society.
There are four broad pillars and strategic-level priority areas of cooperation for the SA-UN partnership. These are as follows: a) Inclusive, just and sustainable economic growth. b) Human capital and social transformation. c) Effective, efficient and transformative governance. d) Climate resilience and sustainably managed natural resources. These strategic priority areas are interlinked, reflecting the integrated nature of the 2030 Agenda, with progress under each strategic priority area requiring and contributing to the progress of the other priority areas.
Oil marketers seek payments for fuel trucking from port (Business Daily)
Oil marketers are demanding compensation for trucking fuel from Mombasa following supply hitches at the pipeline after decommissioning a 40-year-old line, in what will see them raid the fuel subsidy fund afresh. Correspondence seen by the Business Daily shows that officials of the firms have put the demands on the Energy and Petroleum Regulatory Authority (Epra) after sourcing diesel and petrol from Mombasa for months, claiming that this has increased their costs. Their demands, if met, will expose the fund to new pressure at a time when the exchequer is struggling to keep the scheme afloat.
The supply hitches have been partly attributed to the decommissioning of the 40-year-old pipeline commonly known as Line 1 two years ago, which reduced the pumping of fuel from 1,500 cubic metres to 950 cubic meters per hour.
KPC takes over facility in Mombasa to store fuel (The East African)
Kenya Pipeline Company (KPC) has taken over the defunct state-owned Kenya Petroleum Refineries Ltd (KPRL), which it will use to store imported fuel. This is the second time the facility is changing hands after Shell and the British Petroleum Company (BP) sold it to Indian investor Essar Energy Overseas Ltd in 2016.
Kenya’s Energy Permanent Secretary Andrew Kamau said the takeover coincides with the launch of the New Kipevu Oil Terminal, which started a dry run this past week at Mombasa port. Officials say that the acquisition of the refinery by KPC will significantly cut on perennial inefficiencies that have characterised the petroleum products’ supply, which often translates into high prices at the pump, amid shortages. According to the Energy and Petroleum ministry, the refinery’s storage tanks for fuel and liquefied petroleum gas will help reduce a backlog at the terminal.
Ghana 2021 GDP Growth Beats Forecasts on Fourth Quarter Surprise (Bloomberg)
Ghana’s economy grew at the fastest rate in two years in 2021, beating forecasts by the government and the International Monetary Fund after a better-than-expected fourth quarter. Gross domestic product grew 5.4% last year after expanding a revised 0.5% in 2020, government statistician Samuel Kobina Annim told reporters Wednesday in the capital, Accra. That compares with a Finance Ministry estimate of 4.4%, the presidency’s 5.3% and an IMF projection for 4.2% growth.
Economy Grew by 5.2% Inflation at 3.7% – Ministry of Finance/UBOS Report (Red Pepper)
The Ministry of finance planning and economic development has revealed that the economy by 5.2% in the month of March. This is according to the quarterly data released by UBOS in the month ending March 2022 in the second quarter of FY2021/22, compared to a decline of 0.4% in quarter 2 of the previous financial year. This was mainly driven by a pick-up in economic activity following the gradual easing of pandemic-related restrictions. Stronger performances were recorded in industry and services sectors, particularly construction activities, mining and quarrying, and hotel and accommodation services.
Uganda’s trade deficit narrowed to USD 247.66 million in February 2022 compared to USD 274.28 million registered the month before. This was on account of higher exports receipts during the month. Export receipts in February 2022 increased by 13.6% to USD 337.27 million from USD296.82 million in January 2022, driven by coffee, sugar, cocoa beans, and tea. Uganda’s import bill increased by 3% to USD584.94 million in February 2022 compared to the month before, following increased import volumes and higher prices for private sector imports such as chemical & related products, machinery, and vehicles among others. The countries also traded at a deficit with all regions save for the rest of Africa and the EAC. The highest trade deficit was registered in Asia followed by the Middle East.
Implement growth focused policies to attract private investment World Bank to Ghana (GhanaWeb)
President of the World Bank Group, David Malpass has called on the Government of Ghana to implement stringent policies aimed at attracting private investment from citizens and foreigners. This approach, according to the Bretton Woods institution is rather key for countries such as Ghana in order to pave way for sustained economic growth from the fallout of the pandemic and the ongoing Russia-Ukraine conflict.
“Countries should put in place policies that are strong that attract local and foreign investment. It’s very important for such policies to be growth policies. There’s been a tendency to have too much emphasis on government led investment which doesn’t add to the competitiveness and productivity that is needed,” the World Bank president said.
GRA introduces e invoicing expected to reduce costs and processing times (GhanaWeb)
The Ghana Revenue Authority has introduced an electronic invoicing platform for businesses to reduce processing costs including printing, postage, and archiving cost savings. The introduction of the e-invoicing platform will transform how businesses operate in Ghana by reducing costs and cutting down processing times. The GRA is embarking on a massive digitization drive as part of the Transformation Agenda to make the Authority a world-class revenue administration.
Women farmers in Cote d’Ivoire will more easily find markets for their crops, thanks to a digital platform recently launched by UN Women. Blaatto, part of the UN agency’s Buy From Women initiative, is targeting women smallholder farmers and members of women-led agricultural cooperatives in the country’s central region where access to markets is relatively poor
Buy From Women is an open-source, cloud-based enterprise and e-commerce platform that can be customized to specific market products. It also offers women information and finance.
Mrs. Antonia Ngabala Sodonon, UN Women’s country representative for Cote d’Ivoire said, “The Buy From Women platform will connect women producers to all categories of buyers of agricultural products: wholesalers, retailers and consumers across Cote d’Ivoire. It is an opportunity for women farmers to sell their products to a large market of buyers.”
Liberian Women Entrepreneurs Hold Dialogue to Share the Challenges of Doing Business in and out of Liberia (Front Page Africa)
Women under the banner, of the Federation of Liberian Women Entrepreneurs (FEBWE) at a one-day dialogue held at the United States Embassy in Monrovia, highlighted the challenges they faced in doing business both in and out of the country. From the business registration, to the acquiring of loans, including cross border trade, the women say they found so much difficulties in being an entrepreneur in Liberia. For most women, the issue of registration is a problem for them. According to them; the business registry process takes almost a year. Some of the women disclosed that they were in a bailing process but later lost a contract after failing to present valid business registration. They blamed poor reception, extra cost, and bribing as issues that are hindering their efforts of doing business in Liberia.
African trade
54% of women-led businesses unaware of AfCFTA – Survey (Myjoyonilne)
A new report by Finance and Management Company, AYA Institute, has identified that majority of women traders and women-led businesses are unaware of the African Continental Free Trade Area (AfCFTA) – a year after its commencement. AfCFTA The report, titled, “Assessing The Potential of Women-led MSMEs in Ghana to Take Advantage of AfCFTA,” also pointed out that traders and women-led firms complained of not having sufficient time to prepare for the start of the AfCFTA. It also showed that about 72% of traders and 54% of companies are unaware of the AfCFTA. According to the report, even though majority of firms agree that the AfCFTA is a good initiative, they observed that accessing its benefits is a major challenge.
African Union Commission to fight Illicit Financial Flows (IFFs) out of Africa and to harmonize continental tax policy on tax Incentives (African Union)
The global economy has plummeted since the COVID-19 pandemic hit the world in early 2020. While African countries focus on their post-COVID-19 recovery and economic reconstruction, the global tax rules will have implications on Domestic Resource Mobilisation (DRM) as they refer to profit allocation, tax incentive policy design, and combatting Illicit Financial Flows. The African Union Commission, through its department of Economic Development, Trade, Tourism, Industry, and Minerals (ETIM) organized the first meeting of the Sub-Committee on Tax and Illicit Financial Flows (IFFs) of the AU Specialized Technical Committee on Financial, Monetary Affairs, Economic Planning and Integration from 6 to 8 April 2022 in a Hybrid format in Harare, Zimbabwe. The meeting was held under the theme: Tax Incentives – Implication of the Global Tax Reforms for Africa.
In his opening remarks, H.E Amb. Albert Muchanga, Commissioner, Economic, Development, Trade, Tourism, Industry and Minerals, recognized the Republic of Zimbabwe for the warm reception and hospitality accorded to all delegations since their arrival to the beautiful city of Harare. He stressed that IFFs have become a major concern because of their scale and the negative impact they pose toon Africa’s development and governance agenda. He said that IFFs are damaging African economies and impact overall capital outflows and ultimately increasing corruption, undermining governance, shrinking tax revenues and expediting global organized crime.
African countries commit to raise ambitions for Sustainable Development Goals (FAO)
African countries have committed to raise their ambitions and accelerate their actions towards achieving the Sustainable Development Goals (SDGs), in particular ending poverty and hunger, at the conclusion of the 32nd Session of the FAO Regional Conference for Africa. Sixty-two Ministers from 54 African countries participated in the conference – country representation was one of the largest ever thanks to the hybrid mode, with more than half the ministers attending in person in Malabo, and the remainder joining online.
FAO Director-General Qu Dongyu urged countries to adopt enabling policies, innovation and science, and proper investment for agrifood systems transformation in Africa. “We have a lot more work to do, and we must continue to work together, efficiently, effectively and coherently,” he said.
In the ministerial declaration shared today, ministers welcomed the FAO Strategic Framework 2022-31 which shapes the organization’s work towards achieving the SDGs under the Four Betters: better production, better nutrition, a better environment, and a better life for all, leaving no one behind. ”We call on our partners to support our efforts through enhancing investments as we step up our efforts towards the transformation of agrifood systems through the implementation of the Four Betters,” Deputy Minister for Agriculture of Tanzania, Anthony Peter Mavunde said, reading the declaration on behalf of the Ministers. The Ministers also affirmed the centrality of women and young people in Africa’s transformation of agrifood systems, and called on FAO to accelerate concrete actions to tackle the impacts of the climate crisis – calling it a “major threat to the African region.”
Agriculture suffers low budget allocation in EAC (The East African)
Even as hunger, famine, and inflation ravage the East African region, the bloc is still hesitant to fund agriculture and has allocated the sector less than 0.01 percent of its budget. In the draft budget for financial year 2022/2023, East African Community partner states allocated agriculture a paltry $6,750 (0.01 percent) out of total contributions of $59.3 million. A ministerial session of the 15th Meeting of the Sectoral Council on Agriculture and Food Security (SCAFS) held on March 25 in Dar es Salaam, blamed this partly on reliance on donor funding. Over the past five years, development partners have funded more than 90 percent of the sector’s budget.
“Although the agricultural sector provides many employment opportunities, the region exports between 400,000 and 700,000 jobs every year and continues to import agricultural commodities and products such as rice and wheat which can be produced within the region,” he said.
East African body calls for action over rising air transport costs (News Ghana)
The East African Business Council (EABC), an apex body of the private sector associations, on Tuesday voiced its concern about skyrocketing air transport costs in the East African Community (EAC) region. The business body called for a thorough review of aviation taxes, levies and charges so as to make them affordable to air transport users.
High air transport cost in the EAC is blamed for frustrating aviation-dependent sectors such as tourism and export of fresh produce. The air transport market in the EAC was also still under what is described as “tight regulation and control” of the governments, said the statement.
East Africa to benefit from $8b investment plan (The East African)
East African states will jointly benefit from at least $8.77 billion worth of investments in transport, healthcare, energy, and agriculture among other sectors, from deals made at the 2021 African Investment Forum concluded on Thursday. The three-day event was organised by the African Development Bank (AfDB) in partnership with other finance organisations including Africa Export-Import (Afrexim) Bank and African Finance Corporation, and it yielded at least of $36.2 billion from 43 investment deals for the entire continent. For East Africa, one of the largest deals inked during the forum is the $3.3 billion railway corridor that will connect the railway network in Tanzania from Isaka to Dar es Salaam via Dodoma, and then from Tanzania to Kigali in Rwanda, which will be done as a public-private partnership project.
EAC: Regional Leaders Expected in Nairobi for Mini-Peace Summit (KT Press)
A meeting bringing together Heads of States from the East African Community (EAC) is expected to take place in Nairobi, Kenya this Thursday, to discuss peace and security in the region. President Tshisekedi arrived in Nairobi on Wednesday evening for the summit which opens today while Burundi’s Ntare Rushatsi House, the President’s Official account, confirmed that President Ndayishimiye departed for Nairobi. Dubbed the Quintipartite Mini-Summit, the meeting will dwell on the peace and security situation in the region, key among other issues, the situation in Eastern DRC, the latest entrants of the regional bloc.
New guidelines for scaling up investments for youth in agrifood systems in Africa (FAO)
The Food and Agriculture Organization of the United Nations (FAO) and the African Union Commission (AUC) have launched new guidelines for scaling up investments for and with youth in agrifood systems in Africa, during the 32nd Session of the FAO Regional Conference for Africa (ARC32). The Investment Guidelines for Youth in Agrifood Systems in Africa provides practical “how to” steps to develop youth-focused and youth-sensitive investment programmes that see youth as partners in rural development, throughout all phases of the investment programme cycle. The guidelines are for those involved in designing and implementing agrifood investment programmes: governments, financial and technical partners, the private sector, civil society, and young women and men themselves.
Africa as a region has the highest percentage of youth in the world, estimated at 420 million people between the ages of 15 and 35. This is an enormous resource for future prosperity, but the challenges these young people face are many.
Agrifood systems are under pressure from the effects of the climate crisis, chronic and emerging conflicts and the impacts of COVID-19, undermining their ability to provide healthy and affordable food for all. But youth are resilient and innovative. It is crucial to invest differently and engage them as central players driving the transformation of agrifood systems. This includes through expanding automation, digital technologies and the green economy. Young people bring in new ideas, solutions, products and services, new models of entrepreneurship, partnerships and networks. Failing to invest in youth could lead to economic and social costs and threaten agrifood systems’ sustainability.
EU trade relations with Southern Neighbourhood (European Commission)
The long-term objective of the trade partnership between the EU and its Southern Neighbourhood is to promote economic integration in the Euro-Mediterranean area, removing barriers to trade and investment between both the EU and the Southern Neighbourhood countries (Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine*, Syria, Tunisia), and between the Southern Neighbourhood countries themselves.
In 2021, under the new EU Trade Policy Review, the EU has announced a new sustainable investment initiative for interested partners in the Southern Neighbourhood and Africa.
Southern Neighbourhood: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine*, Syria, Tunisia
In 2020, the region represented 4.6% of total EU external trade. Total trade in goods between the EU and the Southern Neighbourhood countries amounted to €149.4 billion. The EU’s imports were worth €58.0 billion, whereas its exports totalled €91.4 billion.
EU trade relations with Eastern and Southern Africa (ESA) (European Commission)
Eastern and Southern African countries: Comoros, Djibouti, Eritrea, Ethiopia, Madagascar, Malawi, Mauritius, Seychelles, Sudan, Zambia, Zimbabwe Six ESA countries – Comoros, Madagascar, Mauritius, the Seychelles, Zambia and Zimbabwe – concluded an interim Economic Partnership Agreement with the EU at the end of 2007.
Global economy news
Global policy coordination needed to tackle macroeconomic challenges: FM at G20 (Mint)
Finance minister Nirmala Sitharaman on Thursday pressed for international policy coordination and proactive collective efforts to protect economies amid geopolitical events dampening growth and recovery prospects. Speaking at the G20 Finance Ministers & Central Bank Governors meeting in Washington D.C., Sitharaman flagged economic challenges arising from prolonged inflation, supply chain disruption, volatility in energy markets, and investor uncertainty for all countries.
Joint Press Release: Ministers of Finance and Governors of Central Banks of G20 Countries Work Together on Solutions on the Current Global Economic Challenges
The IMFC recalls that on March 2, the United Nations General Assembly by a majority of 141 countries adopted the resolution ES-11/1 “Aggression against Ukraine” that “deplores in the strongest terms the aggression by the Russian Federation against Ukraine in violation of Article 2 (4) of the Charter” and “demands that the Russian Federation immediately cease its use of force against Ukraine”. Thirty-five countries abstained from the vote; five countries voted against the resolution; some countries expressed no position.
The IMFC recognizes that Russia’s war against Ukraine has massive humanitarian consequences and detrimental repercussions for the global economy through direct and indirect channels. The IMFC calls for a speedy resolution through diplomatic channels, including “political dialogue, negotiations, mediation and other peaceful means”, and for greater international cooperation and strengthened multilateralism to prevent fragmentation and safeguard global economic integration.
Surging food prices: FAO calls for import financing facility for poorer nations at G20 meeting (FAO)
The Food and Agriculture Organization of the United Nations (FAO) is calling for a global Food Import Financing Facility (FIFF) to help poorer countries deal with surging prices as a result of the war in Ukraine. The FIFF, which is also aimed at increasing global agricultural production and productivity in a sustainable way, is one of six policy proposals put together by FAO in response to the crisis. Russia and Ukraine are important players in the global food market, with almost 50 countries dependant on them for at least 30 percent of their wheat import needs. Russia is also a key exporter of fertilizers. In 2020, it ranked as the top exporter of nitrogen fertilizers, the second leading supplier of potassium, and the third largest exporter of phosphorous fertilizer. Energy prices have also been rising, mostly due to market conditions. With the COVID-19 pandemic already squeezing budgets, the conflict in eastern Europe has pushed FAO’s Food Price Index to an all-time high, hitting the vulnerable the most. Higher fertilizer prices, meanwhile, are putting future harvests at risk globally.
According to FAO simulations, the conflict could result in as many as 13.1 million more people going hungry between 2022 and 2026, compared to the baseline.
War in Ukraine is triggering a food crisis – and climate change has more in store (Climate Home)
Russia’s war on Ukraine has thrust food security to the top of the global agenda. Now, the world’s leading climate scientists have piled on a stark warning: Unless we act fast, climate change all but ensures that food crises will become the norm and not the exception. The combination of acute shocks to global food systems and a warming climate make for a terrifying and explosive combination. We are seeing the consequences play out right now, as the war in Ukraine will almost certainly trigger a global food crisis with catastrophic consequences for the most vulnerable.
Then there’s climate change. One of the most alarming findings in the Intergovernmental Panel on Climate Change’s (IPCC) recent series of reports is that the climate crisis will increasingly undermine food security and nutrition around the world. The IPCC’s report on climate impacts confirmed that extreme climate events like floods, droughts, and storms have already exposed millions to acute food insecurity and malnutrition.
This is our new reality: A gradually worsening situation for food and nutrition as temperatures relentlessly rise. It’s the frightening backdrop for the world’s geopolitical and economic developments – any crisis in a critical food-producing area could spell disaster on a global scale.
Governments need agile fiscal policies as food and fuel prices spike (IMF Blog)
Just as increasing vaccinations offered hope, Russia’s invasion of Ukraine disrupted the global economic recovery. One of the most visible global effects has been the acceleration of energy and food prices, triggering concerns about episodes of food shortages and increasing the risks of malnutrition and social unrest. World food prices surged by 33.6 percent in March from a year earlier, according to the Food and Agriculture Organization of the United Nations.
Our latest Fiscal Monitor discusses how governments, faced with record debt and rising borrowing costs, can best respond to the urgent needs. It stresses the call for greater global cooperation.
Creative industry 4.0 offers vast opportunities for developing countries (UNCTAD)
21 April marks World Creativity and Innovation Day, a day to increase awareness about the role of creativity and innovation in problem-solving and sustainable development. This year, UNCTAD celebrates this day with the launch of a new report, “Creative Industry 4.0: Towards A New Globalized Creative Economy”, which focuses on the intersection of industry 4.0 and the creative economy. It’s timely, as the COVID-19 pandemic has accelerated digitalization in every aspect of life. The report highlights how industry 4.0 technologies transform creative industries and provide policy options for developing countries to harness these new technological trends for their creative economy. Creative Industry 4.0 is expected to benefit from the opportunities brought by new technologies. On the design and production side, these are: enhanced efficiency, unrestricted creativity, greater interactivity and flexibility that facilitates cost-effective customization. “The potential of knowledge-based creative products is not limited to the digital creative industry. It’s also relevant for the most traditional, cultural or heritage-dependent creative activities,” said Miho Shirotori, head of trading systems, services and the creative economy at UNCTAD.
BRICS+: Are there any prospects? (CGTN)
Against the backdrop of the ongoing growth of geopolitical risks and challenges in the world, we are increasingly aware that the old architecture of the world order is gradually disappearing, and a new configuration of international relations and regional blocs is coming to replace it. The countries of the “Global South” create their own international institutions, regional integration associations, financial settlement systems, and implement their own regional infrastructure projects so that they are not completely dependent on the international financial institutions of the West. Among the leading countries participating in the processes of transformation of the world economy are the largest emerging markets, primarily the BRICS countries.
Over the past decade, the BRICS association has taken a prominent place in international relations, as it allows the most dynamic economies of the world to consider a much wider range of issues than, for example, in the United Nations Security Council, and find answers to many economic and environmental challenges.
Experts from the BRICS member countries see in cooperation the association of prerequisites for the formation of a financial alternative to the hegemony of the dollar in the world economic system and space for investment diversification, as well as an opportunity to create new models of interaction, and transform the mechanisms of the global political architecture.
Another important achievement of the BRICS member countries was the fact that a new tool, initiated by China in 2017 during the Xiamen summit, appeared in the work of the association — the BRICS+ format, which involves the cooperation of the five with other partners.
In the current geopolitical conditions, it seems extremely important to advance work toward the integration of other countries into the BRICS+ format. Given the fact that the BRICS+ format is already working successfully, BRICS has the prerequisites to become the basis for a new world order.
To do this, first of all, BRICS countries should form a new world economic architecture, consisting of such directions as the reboot of globalization based on a new platform of countries and regions; creation of a monetary and financial system; formation of new regional blocs and platforms for their coordination and development; creation of a new format for the development of the world economy, etc.
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South Africa Floods Could Hurt China Trade (Voice of America)
Some of the worst flooding in South Africa’s history has left more than 400 people dead and some 40,000 displaced, dealing a devastating blow to the eastern city of Durban, which has a seaport that has also been badly affected. With the port not fully functioning, there are supply chain concerns and China — South Africa’s biggest trading partner — and other nations, are likely to see their imports and exports disrupted. Earlier this week, South African President Cyril Ramaphosa declared a national state of disaster because of the flooding — which he blames on climate change but which some critics blame on poor infrastructure and the fact that most of the people affected were living in makeshift shacks in informal settlements.
Ramaphosa stressed the importance of quickly fixing the situation at the port, saying, “The Port of Durban — which is one of the largest and busiest shipping terminals on the continent and which is vital to our country’s economy — has been severely affected.”
One of the countries likely to be affected by problems at the port is China, said Cobus van Staden, senior China-Africa researcher at the South African Institute of International Affairs. “In relation to the situation in Durban, it’s very serious for the whole of China-Africa trade, rather than just for South Africa; this is because of the centrality of Durban port to Chinese exports,” he told VOA. “About 20 percent of total China-Africa trade goes out through Durban and this includes resources like cobalt, copper and lithium coming from the Democratic Republic of Congo and Zimbabwe particularly,” he added.
Sugarcane farmers report extensive damage, AgriSA calls for road repairs as a priority (Engineering News)
Sugarcane farming industry body South African Cane Growers (SA Canegrowers) says preliminary results from a survey of KwaZulu-Natal cane growers reveal extensive damage from the recent flooding to cane fields, farm infrastructure and access routes to deliver cane to mills.
By the afternoon of Tuesday, April 19, more than 300 growers had responded to the survey and reported that 2 516.65 ha of cane had extensive crop and root damage, therefore requiring the total replanting of these fields to bring them back into production. This damage comes to an estimated R194.9-million. Farm infrastructure to the value of R27.9-million has also been destroyed, bringing the total losses to R222.9-million, the association says. “A number of local roads and bridges were also washed away, which are not only the main transport nodes to mills, but also the access routes for farm inputs and workers employed on these farms,” SA Canegrowers CEO Dr Thomas Funke points out. This catastrophic damage comes just as many canegrowers had started recovering from the riots and arson attacks that took place in July last year, which saw 554 000 t of cane being burnt and R84-million in losses incurred.
Transnet works to restore port and rail operations (SAnews)
Transnet is working hard to ensure that port and rail services return to full operation after flooding in KwaZulu-Natal interrupted operations at the Durban Port and surrounding railway lines last week. The port is one of the biggest in the Southern African region and is a gateway to the country’s economic hub, Gauteng.
“The port is critical to the stability of the South African economy and Transnet will continue to work with all customers and industry to ensure that the logistics chain is enabled, in the interests of the economy,” said the State owned rail, port and pipeline company.
President Cyril Ramaphosa to attend Mining Indaba 2022 (Engineering News)
President Cyril Ramaphosa will deliver a keynote address at the 2022 Investing in African Mining Indaba, which takes place in Cape Town from May 9 to 12.
The mining industry more than proved its mettle during the Covid-19 pandemic, making a substantial contribution to taxes during a time when South Africa most needed it, the release added. The president’s participation in the Investing in African Mining Indaba, where he will address mining industry leaders and investors from many parts of the world, follows on the highly successful South Africa Investment Conference in March, and will further serve as a major network for driving investment in the country and on the continent.
Unlocking the potential of the oceans economy (SAnews)
As part of efforts to unlock the potential of the oceans economy and drive transformation in an aggressive way, government has prioritised the acceleration of interventions in the maritime sector. Among these is the establishment of a national shipping carrier as a means of building the strategic national shipping capacity and capability. “Enhancing our ship registration framework remains at the centre of our efforts not only to grow our shipping industry, but to transform the sector such that it makes a meaningful contribution to broadening economic participation,” Minister of Transport, Fikile Mbalula, said on Wednesday. The Minister was addressing the Comprehensive Maritime Transport Policy (CMTP) Mid-Term Review Conference aimed at building faster momentum for economic growth, transformation and job creation in the maritime sector.
South African vessels would be given preference to move cargo from one domestic port to the next, a move that could trigger growth of merchants and create new industries,” the Minister said. South Africa’s policy recognises the economy as intrinsically linked with other regional economies and prioritises regional coastal shipping as an important enabler in unlocking the potential of the oceans to the region.
There’s a place for big and small farms in securing South Africa’s food supply (The Conversation Indonesia)
The farming sector is arguably the most important economic sector for South Africa’s development as it is directly linked to food security and poverty reduction. In 2019, 5.3% of employees in South Africa were in the agricultural sector and in 2020, agriculture contributed around 2.5% to the country’s GDP. The constitutional right to food puts food systems and agricultural development firmly on the national development agenda. South Africa’s history shaped farming into a two-part system: large-scale commercial farmers and small-scale farmers. Both types are important in the agricultural economy.
Government steps up crackdown on rogue oil dealers as supply normalizes (Nation)
The government is stepping up its crackdown on rogue oil marketing companies after censuring four retail stations that were found selling fuel at higher-than-recommended prices even as supply of the commodity normalises across the country. The long winding queues at petrol outlets have dissipated just days after the Energy and Petroleum Regulatory Authority (Epra) on Thursday increased the cost of petrol, diesel and kerosene by Sh9.90 pushing the cost of the three products to a historic high.
The normal supply comes days after acting Petroleum Cabinet Secretary Monica Juma lambasted oil companies accusing them of deliberately causing an artificial fuel shortage by withholding their stocks until fuel prices are pushed upwards to reap higher profits.
Fiber optics boom makes comeback (Nation)
Airtel plans to land a new submarine internet cable in Kenya, underpinning a fresh wave of connections that is expected to raise price competition in the race for the country’s booming internet economy. Airtel Networks Kenya has already made an application to the Communications Authority of Kenya for submarine cable landing rights. Barely two weeks ago, Kenya welcomed its sixth submarine internet cable as a partnership between Telkom Kenya and a consortium known as Pakistan and East Africa Connecting Europe (Peace) — meaning the additional cables by Airtel and the big tech firms would underline a fresh wave off connectivity with benefits to consumers. “This ultra-high capacity cable will assist Kenya and the region in meeting its current and future broadband capacity requirements as well as assist carriers in providing affordable services to Kenyans,” Telkom Kenya’s Mugo Kibati said during the launch.
Japan overtakes China in fresh Kenya loans race (The East African)
China has cut fresh financial commitment to Kenya’s development projects by nearly four times in seven years, falling behind Japan on the list of top bilateral lenders to the East African nation for the second year running. The Treasury has in the budget estimates for the financial year starting July listed Japan as the largest source of bilateral loans and grants, leapfrogging China which has been the biggest financier for nearly a decade.
Beijing is projected to lend Kenya Ksh29.46 billion ($254.9 million) for the fiscal year 2022/23, a sharp cutback from Ksh140.03 billion ($1.2 billion) in the 2015/16 budget. That marks the second year in a row that China will trail Japan in bilateral loans, having committed Ksh21.25 billion ($183.9 million) in the current year ending June against Tokyo’s Ksh36.49 billion ($315.7 million), according to the Treasury’s budget books. China, however, remains the biggest bilateral creditor by far due to big-ticket deals it has inked with Kenya in the last decade to fund and build mega infrastructure projects such as roads and a modern railway.
Uganda’s Agoa export earnings drop drastically (Monitor)
Uganda’s export earnings have dropped tremendously in the last two years as a result of the Covid-19 pandemic that hit the country, the African Growth and Opportunity Act (Agoa) officials have observed. Uganda is one African country whose exports are eligible for tariff and quota-free access to the US market under the Agoa initiative. Mr Benson Byaruhanga, the Agoa economist, told Monitor in an interview yesterday that the country’s export earnings dropped from Shs56.6b in 2019 to Shs46.1b in 2020 and to a further Shs40.5b last year due to Covid-19. “The drastic drop in export from Shs112.1b in 2017/18 to Shs56.6b in the year 2018/2019 was due to many factors. The quality of products dropped and then also the cost of doing business wasn’t favourable and people pulled out of Agoa,” Mr Byaruhanga said.
New report hints on Uganda’s tax opportunities (Independent)
A new report published by Oxfam, Southern and Eastern Africa Trade Information and Negotiations Institute and other non-governmental organisations has identified gaps related to gender taxation, policy and administration, and that once fixed could boost government’s ability to deliver services to its population. Titled ‘The Fair Tax Monitor Study or simply FTM’, the report reveals that Uganda has made minimal progress in making the Uganda tax system fair and gender responsive. This is mainly because the country depends largely on indirect taxes – excise duty, VAT, and customs – which disproportionally affect low-income earners, especially women, since they spend a higher proportion of their income on consumer goods for their families.
The report also notes that large tax incentives and exemptions and illicit financial flows drain critical resources that hinder government’s ability to provide critical public services. In FY2019/20, Uganda recorded approx. Shs5tn as incentives.
Mozambique to Export Electricity to Botswana (allAfrica)
Mozambique’s publicly owned electricity company, EDM, will provide 100 megawatts of non-firm power to Botswana, under a contract, valid for a year, signed on Thursday between EDM and the Botswana Power Corporation (BPC). The capacity agreed under the Power Purchase Agreement (PPA) seeks to help meet the growing demand for electricity in Botswana. But the supply of power by EDM will be subject to a request by BPC, and the availability of surplus power from the Mozambican grid. At the signing ceremony in Gaborone, EDM chairperson Marcelino Alberto stressed the new opportunities for the energy market of SADC (Southern African Development Community), that will be created when the new gas-fired power station at Temane, in the southern Mozambican province of Inhambane, begins to operate.
I’m Sad Our Neigbouring Countries Still Have Their Borders Closed - Nana Akomea (Peace FM Online)
STC Boss, Nana Akomea has raised concerns about the closure of borders in Ghana’s neighbouring countries. As Ghana has opened her land borders to foster trade, her neighbouring countries, primarily Togo and La Cote d’Ivoire, haven’t yet opened their borders; according to sources. President Nana Akufo-Addo announced the opening of the land borders in his latest update on COVID-19 as he lifted the Coronavirus restrictions and was optimistic the move will help inject capital in order to boost economic growth.
New railway connecting northern Nigeria with Niger expected to boost trade (How we made it in Africa)
Nigeria is in the process of linking its northern states with Niger, with a 284-kilometre railway running from Kano in Nigeria, to Maradi in Niger. The move will strengthen trade between the two inland trade hubs, while further boosting African economic integration in the Sahel region.
Construction work on a 284-kilometre railway line linking Kano – the greatest trade hub in northern Nigeria – with Maradi, the second-largest city in Niger, is underway as Nigeria pushes to take on a substantial portion of the transit freight market in the region, local media reported. Work is being undertaken by the China Civil Engineering Construction Corporation.
According to Nigerian transportation minister Rotimi Amaechi, Nigeria’s fast-growing rail infrastructure offers a compelling route for goods bound from, and to, the Sahel. “It is simple, currently, the Niger Republic is exporting through Benin Republic. All the countries that are landlocked in the West African region are exporting through Benin Republic, Togo, Ghana, Ivory Coast. Why are they not exporting through Nigeria?” Amaechi said at a ceremony in Kano.
Burundi Set to Establish Financial Intelligence Unit (COMESA)
Burundi is set to join the global agenda cracking-down financial crimes including money laundering by creating its Financial Intelligence Unit (FIU). Towards this goal, COMESA is supporting the country to conform to the international standards set by the Financial Action Task Force (FATF) in line with Burundian needs. Recently, Burundi FIU Board officials comprising of security and customs officers undertook a benchmarking tour of the FIU Unit in Mauritius. The trip was sponsored by the COMESA Regional Maritime Security (MASE) programme, which covers Eastern and Southern Africa and Indian Ocean (ESA-IO) region. A similar trip is planned to the Uganda Financial Intelligence Authority towards end of April 2022. The core functions of FIUs are receipt and analysis of suspicions transaction and activity reports identified and filed by reporting entities, and disseminate the intelligence to law enforcement agencies and other FIUs, upon request. The FATF is the global money laundering, terrorist financing and proliferation financing watchdog and sets international standards that aim to prevent these illegal activities and the harm they cause to society.
IMF to Guinea Bissau: Quit relying on cashew nut, diversify exports (The East African)
Guinea Bissau’s economy is excessively dependent on the production and export of cashew nuts, leaving the country highly exposed to fluctuations in international prices and local weather conditions, the International Monetary Fund (IMF) has said. As a way out, the IMF suggests that diversifying its output and exports can contribute to higher and more sustainable growth. Guinea Bissau is one of the poorest countries in the world. It has the vital cashew nut crop as its main source of foreign exchange that provides a modest living for most of Guinea Bissau’s farmers. The West African country, has a massive foreign debt and an economy that relies heavily on foreign aid. “Opportunities lie in a range of areas such as agriculture, processing industries, natural resources and tourism,” the IMF said. “Taking advantage of these opportunities requires addressing constraints that have hindered diversification to date”.
Today, the Government of Madagascar and the World Bank signed two recently approved projects for Madagascar totaling $534,9 million. The Connecting Madagascar for Inclusive Growth project and the Pandemic Preparedness and Basic Health Services Delivery Project are key to unlocking opportunities for the people of Madagascar and strengthening their resilience against future shocks.
“The COVID-19 pandemic had a major impact on Madagascar’s economy and people. The World Bank has worked alongside the Malagasy government and population to support recovery efforts during this period, and is committed to accompanying the country to strengthen its health system in the face of future pandemics,” said Hafez Ghanem, World Bank Vice President for Eastern and Southern Africa. “The World Bank is also strongly committed to improving the transport and connectivity sector as it is key to unlocking Madagascar’s economic and social development.”
African trade news
AfCFTA Adjustment Facility Sets In Motion (News Ghana)
The African Continental Free Trade Area (AfCFTA) Secretariat has packaged a private sector engagement plan in partnership with the MasterCard Foundation to enhance private participation in African economic development. The plan focuses on four initial priority sectors or value chains, namely agro-processing, automotive, pharmaceuticals, and transportation and logistics for quick wins, based on the potential for import substitution and existing production capabilities on the continent. Mr Wamkele Mene, Secretary-General of AfCFTA Secretariat, speaking at the Chatham House Members Event, said the Secretariat also in partnership with the Afreximbank, was finalising arrangements for the operationalisation of an AfCFTA Adjustment Facility.
The Facility will provide a mechanism for Member States to access financial and technical resources to implement the Agreement and mitigate the short-term disruptions and associated costs. He said in February, the Secretariat signed a $10 billion AfCFTA Adjustment Fund Management Agreement in Cairo, Egypt. The signing was to pave way for the operationalisation of the Adjustment Facility to enable countries access the funds subject to certain criteria.
AfCFTA Secretariat: Conclusion of AfCFTA Phase II negotiations our priority - Secretary-General (GNA)
African Continental Free Trade Area (AfCFTA) Secretariat says it has prioritised the conclusion of the AfCFTA Phase II negotiations, covering protocols on Women and Youth in Trade, Investment, Competition Policy, Digital Trade, and Intellectual Property Rights. The finalisation of all these protocols, especially the phase II protocols, will greatly contribute to deepening economic integration in Africa.
Mr Wamkele Mene, Secretary-General of AfCFTA Secretariat, speaking at the Chatham House Members Event, said with these additional protocols, “we are further transforming the continent by removing physical and commercial barriers that have hitherto hindered trade among our countries.” The event was on the theme: “Implementing the African Continental Free Trade Area: priorities and prospects.”
Mr Mene said regarding the outstanding negotiations on the rules of origin, while significant progress had been made with agreement of 87.7 per cent of tariff lines. He said this meant that the AfCFTA had now defined for each of them what constituted the minimum African content for a product to be traded among countries of the continent based on preferences. “It is critical that the outstanding 12.3 per cent is completed as soon as practicable,” he added.
SACU Investment Roundtable targets accelerated recovery (New Era)
The first ever Southern African Customs Union (SACU) Investment Roundtable event was successfully hosted by Botswana under the theme: “Positioning SACU as an industrial, investment, manufacturing and innovation hub for the African continent and beyond”. The investment seminar was held on 12 and 13 April 2022 in Gaborone, Botswana and aims to achieve accelerated industrialisation and pave way for economic recovery among SACU member states. The objective of the gathering was to showcase investment opportunities in selected priority sectors across the SACU region, targeting: textiles and clothing, pharmaceuticals, cosmetics and essential oils as well as agro-processing, specifically leather and leather products, meat and meat products, and fruits and vegetables. These sectors offer extensive opportunities for the development of regional value chains across the SACU region.
Namibia’s trade and industrialisation minister Lucia Iipumbu emphasised the need to guard the natural active ingredients sector against under exploitation. Most importantly, she said, is the need to deliberate on an industrial policy perspective on how to harness the SACU rebates and draw linked value chains.
DRC entry into EAC reinforces Kenya’s geo-economic leadership (Capital News)
The entry of the Democratic Republic of the Congo (DRC) into the East Africa Community (EAC) marks a significant milestone for Kenya in terms of advancing her geo-economic influence in the region while strengthening intra-regional trade and investment.
In appending their signatures to the document, DRC President Felix Tshisekedi and his Kenya counterpart Uhuru Kenyatta, in his capacity as EAC Chair, paved way not only for the integration of the expansive central African nation into the six-member strong East African union, but also the creation of a regional market with a GDP conservatively estimated at $ 250 billion (Ksh. 24.3 trillion). Essentially, the move ushers in a common market stretching from the Indian Ocean in the east to the Atlantic Ocean in the west, and home to more than 270 million people. DRC alone has a population of 95 million people, signifying its vital importance in the expanded bloc.
Also, apart from being the largest country geographically in sub-Saharan Africa, almost the size of Western Europe, DRC has vast natural resources including 60 per cent of the global cobalt reserves. Cobalt is a precious metal used in the manufacture of batteries that power smartphones and electric cars. The country also exports gold, copper and timber. DRC also has significant energy resources and arable land that if harnessed, alongside its abundant mineral wealth, are capable of transforming the East and Central African regional bloc into an economic powerhouse. Additionally, it is an important connectivity hub given that eleven major transport corridors facilitating trade in the Central, Eastern and Southern traverse it.
Calls grow for EAC to reduce reliance on imported pharmaceuticals (The New Times)
What would happen to the people of the East African Community if donors who fund most regional programmes on malaria, TB and HIV/AIDS decided, overnight, that they are no longer giving us medicines? The question was posed Monday, April 19, by Jean Baptiste Havugimana, the EAC director for productive sectors, while shedding light on the status of the regional pharmaceutical industry during a meeting in Kigali where local stakeholders shared views on how to improve a related draft legislation. A team of members of the East African Legislative Assembly are gathering inputs from stakeholders so as to polish the EAC Pharmaceuticals Bill which aims to, among others, promote access to essential medicines and facilitate the promotion and development of the regional pharmaceutical industry.
MP Francine Rutazana, a Rwandan who initiated the idea of the Bill in December 2019, told The New Times she hopes that after the ongoing public hearings, the regional Parliament could pass the Bill during the June sitting. “The Bill builds on the African Union model law on medical products regulation which seeks to harmonise regulation of medical products within member states,” the lawmaker said. “The objective is to facilitate access to essential medicines in the Community; promote pharmaceuticals produced within the Community; promote good manufacturing practices and quality standards in producing pharmaceuticals; promote preference for pharmaceuticals produced in Community during public procurement and for related matters.”
Cemac: Economy expected to improve in Q2 2022, despite gloomy international context (Business in Cameroon)
The central African region’s economy is expected to improve in the second quarter of this year, despite a not-so-helping international context. This is revealed in the latest Beac business survey. This improvement forecast comes at a time when inflation is growing in the region and the global environment is shaken by the war in Ukraine, which has further increased the cost of raw materials and freight on the international market. The central bank projects inflation in the Cemac at 3.6% in 2022, 0.6 points above the tolerance threshold accepted within the region.
Throwing away keys to borders will get rid of some Africa crises (The East African)
In an interview with the London publication, The Telegraph, African Development Bank (AfDB) president Akinwumi Adesina painted an unsettling picture of how the disruptions to grain and fuel supplies caused by the war could result in food riots, political upheaval and turn back the clock on the progress Africa has made in recent years. “The price of wheat has gone up by 62 percent since the beginning of the war. The price of maize has gone up by 36 percent. The price of soya beans by 29 percent. Now the price of fertilisers, which are very critical for food production, has gone up by 300 percent — that’s three times.” Why? Because, as The Telegraph noted, Ukraine and Russia export about 25 percent of the world’s wheat, and together the two countries make up about 80 per cent of the world’s sunflower oil trade. Africa relies heavily on both countries for food imports.
“East Africa is particularly of concern to us. Russia and Ukraine supply most of the grains to this region. In fact, East Africa relies on these two countries for 90 percent of their wheat,” he said. Dr Adesina and the bank are putting their money where their mouths are, announcing plans to raise $1 billion to boost food production in Africa to stem shortages.
Boosting Africa’s resilience to the adverse impact of the Ukraine crisis (UNECA)
From expanding social safety nets and improving governance to boosting intra-African trade, the chief economist of a United Nations regional body in Africa proposed a series of measures to boost Africa’s resilience in the face of the risks and uncertainties arising from the Ukraine crisis, which has deteriorated the social and economic fallout from the COVID-19 pandemic.
Ukraine and Russia are two of the major global suppliers of agricultural commodities, fertilizers and energy. “These two countries together account for over half of the global market share in sunflower oil, for example. A third of the world’s wheat production comes from Ukraine and Russia, and they supply nearly a fifth of maize globally,” Hanan Morsy, Deputy Executive Secretary and Chief Economist at the UN Economic Commission for Africa (ECA) said.
Ukraine and Russia are two of the major global suppliers of agricultural commodities, fertilizers and energy. “These two countries together account for over half of the global market share in sunflower oil, for example. A third of the world’s wheat production comes from Ukraine and Russia, and they supply nearly a fifth of maize globally,” she said.
Italy pursues African gas to end dependence on Russia (CGTN Africa)
Italian ministers head to central Africa Wednesday in an urgent quest for new energy deals as Italy scrambles to break away from Russian gas. Prime Minister Mario Draghi is looking to add Angola and the Congo Republic to a portfolio of suppliers to substitute Russia, which provides about 45 percent of Italian gas.
“We do not want to depend on Russian gas any longer, because economic dependence must not become political subjection”, he said in an interview with the Corriere della Sera daily published on Sunday. “Diversification is possible and can be implemented in a relatively short amount of time — quicker than we imagined just a month ago,” he said.
Algeria is currently Italy’s second-largest supplier, providing around 30 percent of its consumption.
How Huawei’s Localization in North Africa Delivered Mixed Returns (Carnegie Endowment for International Peace)
Trade between China and North Africa has increased significantly since the early 2000s, but it has largely reproduced patterns of unequal exchange. Since they were unveiled, the Belt and Road Initiative (BRI) and the Chinese government’s 2016 Arab Policy Paper have signaled the promise of a qualitative shift in China’s engagement with the region. China has committed to increase investments in high-value-added sectors and to boost cooperation in science and technology with countries across North Africa. The digital space is a notable aspect of recent China–North African partnerships. Chinese tech firms are becoming ever more important actors in North Africa through the Digital Silk Road, the digital component of the BRI. North African governments see the Digital Silk Road as an opportunity to help bridge the digital divide and bolster their own national efforts to build digital economies and create high-quality jobs for the millions of unemployed university graduates across the region. In recent years, the region has become home to notable Digital Silk Road projects such as smart cities, satellite navigation centers, data centers, and network infrastructure. Huawei’s localization strategies in Algeria and Egypt show that, far from imposing a one-size-fits-all blueprint on other countries, as Beijing is often depicted as doing in U.S. and European media and policy discussions, Chinese tech players adapt their engagement depending on local development agendas. Flexibility, customization, and services tailored to local demand have been cornerstones of Huawei’s localization strategies in North Africa.
Pan-African crypto currency ‘can ease business costs’ (Ventureburn)
A common crypto currency and an integrated capital market could boost trade in Africa and sustain growth after the Covid-19 crisis. As such, a collaborative effort was needed with financial institutions on the digitalisation of delivery and payment channels. This was the view of experts at the African Economic Conference held in Cape Verde. They, however, reiterated that the continent first needed to harmonise national rules and protocols governing the financial systems of individual countries to make the reforms workable.
Anouar Hassoune, professor of finance and chief executive of the West Africa Rating Agency, participated in a discussion on reforming Africa’s financial system. He said a common crypto currency will ease the cost of doing business and give the continent an identity. “We need to come up with a crypto currency that is acceptable to each member state. It’s better to do it at the continental level, and we have the expertise to do it. It’s a matter of governance, not an issue of technology,” Hassoune stressed.
He added that the proposed crypto currency could serve as an alternative to monetise some of the continent’s endowments, such as gold and other commodities.
Digital banking is the in-thing - but it excludes many users in Tanzania and Senegal (The Conversation)
Across countries in Africa, only 33% of adults have an account at a bank or another financial institution. Among the women, this rate is only 27%. Financial services like accounts, credit cards and retirement plans allow people to protect their savings, earn interest, borrow for big expenses like a house or medical bills, and even start their own businesses. This is why financial inclusion is mentioned in eight out of 17 of the Sustainable Development Goals. But opening and maintaining these kinds of accounts can be difficult when banks are difficult to reach. To solve this, some have proposed using digital technologies to reach the “unbanked”. Services like mobile money, which allow people to use their mobile phones to make or receive payments, have become quite popular. In recent years, more than 157 mobile money operators like M-Pesa and Orange have taken off across the African continent.
The African Development Bank brought together various development and industry experts to discuss the potential of fourth industrial revolution technologies and innovations to tackle climate change in Africa.
The virtual panel — “Harnessing the Fourth Industrial Revolution (4IR) to Build Africa’s Climate Resilience: Practical case studies and experiences” — took place on the 31st March 2022 as part of the Second Global Gobeshona Conference.
In his opening remarks, Dr. Al Hamndou Dorsouma, Officer-In-Charge of the Climate Change and Green Growth Department at the African Development Bank, noted that technologies were already being applied on the continent to enhance climate-related research, enable precision agriculture and observe climatic and weather patterns, with impactful results. To demonstrate this, he cited the work of the Bank’s ClimDev Africa Special Fund, which supported the procurement of supercomputers that were instrumental in successfully monitoring and tackling the outbreak of desert locusts in East Africa in 2020. “This goes to demonstrate that fourth industrial revolution technologies and innovations can be leveraged towards solving problems that build resilience and enhance adaptive capacity to the impacts of climate change,” he concluded.
Green Banks can plug climate finance gap—participants at MENA Climate Week hear (AfDB)
Green Banks have a critical role to play in overcoming climate finance gaps, participants of an African Development Bank event held on the side lines of Middle East and North Africa Climate Week. Organized in partnership with the Islamic Development Bank, A Green Finance Facilities Ecosystem: a $3tn opportunity for Africa brought together climate finance experts from both multilateral development banks, the Nordic Development Fund, and Pollination Group, a climate change investment and advisory firm, to share perspectives on how sustainable investments represent an opportunity for Africa and the MENA region.
The Egyptian government is creating an enabling environment and strategically aligning its policies with the needs of the private sector. Ahead of COP27, Egypt is preparing a guidebook to help Governments, Multilateral Development Banks and the private sector engage in the mobilization of climate finance.
The Board of Directors of the African Development Bank has approved an equity investment of €9.8 million to support venture capital investments in African start-ups, from seed to growth stages.
Of the equity investment, €7 million will be sourced from the African Development Bank’s own resources; the additional €2.8 million represents funds provided by the European Union (EU) through a partnership with the Organisation of African Caribbean and Pacific States (OACPS).
The investment will help Cathay-AfricInvest Innovation Fund meet its target of securing €110m to invest in over 20 early-stage ventures across sub-Saharan Africa. The Innovation Fund focuses on financial inclusion (financial tech and insurance tech), retail and logistics platforms targeting online and mobile consumers, healthcare technologies, and pay as you go, off-grid energy technologies.
Global economy news
Africa, South America businesses most concerned about high transportation costs: DP World study (Gulf News)
Businesses based in South America and Africa have a more ‘negative’ outlook due amid rising inflation, geopolitical tensions and port congestion. For example, 42.5 per cent and 49.5 per cent of executives surveyed in South America and Africa, respectively, identified higher transport costs as the top limitation for increasing exports. This compared to 19.9 per cent for those in China, 27.5 per cent in India and 25 per cent in UAE. The study, conducted by Economist Impact, surveyed executive-level participants representing businesses in 26 countries. The research was commissioned by DP World, global logistics company and a key participant in the World Logistics Passport. “This new data tells us that different countries and regions are having remarkably different experiences of the same supply chain pressures,” said Mahmood Al Bastaki, General Manager of the World Logistics Passport, the DP World initiative that aims at creating a smoother flow for global trade. “With export prospects for businesses in South America and Africa more likely to be impacted by rising transport costs, the private sector is in need of solutions that will help increase efficiencies and lower these costs to help ease inflationary pressures.”
Countries raise 10 new concerns at WTO meeting (Food Safety News)
The United States was involved in one of the 10 new issues raised at a recent World Trade Organization meeting on food safety and trade. Almost 50 specific trade concerns (STC) were discussed at the WTO Committee on Sanitary and Phytosanitary (SPS) Measures meeting in March. Issues included pesticide maximum residue limits (MRLs), animal diseases, and COVID-19 related measures. Ten concerns came up for the first time including one from Brazil about undue delays by the United States in opening its citrus market. Three new concerns were withdrawn, following progress in negotiations. Others involved pesticide tolerances and the environment, collagen for human consumption, and phytosanitary certification requirements.
World Bank Group Ramps Up Financing to Help Countries Amid Multiple Crises (World Bank)
The World Bank Group has announced that over the coming weeks it will be discussing with its Governors and Board of Executive Directors a 15-month crisis response financing package of around $170 billion to help countries address multiple overlapping crises. Of this, the Bank Group is working to provide an initial crisis response of around $50 billion by June 30, 2022. The response also includes analytical work and policy advice at the country, regional, and global levels to inform well targeted crisis and medium-term interventions. “Developing countries are facing multiple overlapping crises, including the pandemic, rising inflation, Russia’s invasion of Ukraine, large macroeconomic imbalances, and energy and food supply shortages. These are causing massive reversals in poverty reduction, education, health, and gender equality,” said World Bank Group President David Malpass. “The World Bank Group will respond to these crises with impact, speed, and scale.”
New report makes a case for sustainable farming (Business Daily)
A new report has called on African countries to give priority to sustainable farming practices in their national policies and budgets to ensure food and nutrition security and build resilience against climate shocks. The report by the Global Alliance for the Future of Food warns that the promotion of industrialised food systems at the expense of environment-friendly agricultural production systems like agroecology is aggravating biodiversity loss, deforestation and greenhouse gas emissions. “The industrialised food system is one of the greatest stressors to the health of the planet, causing 80 percent of biodiversity loss and generating almost a quarter of global greenhouse gas emissions. Alternatively, agroecology, regenerative practices and indigenous knowledge are avenues that can lead to sustainable food systems and repair the relationship between people and nature,” the alliance says. “However, the evidence supporting these practices, although abundant, is not prioritised in government policies or budgets, due to the limited frames of traditional analysis. Scepticism ends up holding back the urgent transformation of food systems.”
Germany calls for global food security alliance (EURACTIV)
German development minister Svenja Schulze is travelling to the World Bank Group’s spring meetings in Washington with a clear mission: G7 and donor countries should form a food security alliance to tackle the global food crisis.
On Wednesday (20 April), Schulze said she wants to achieve “stronger coordination of the G7 and other donors and international organisations in the fight against the food crisis” at the conference, which is set to start on Thursday. The proposal has already been presented to the G7, of which Germany currently holds the presidency. Now, the minister wants to lobby for international support in Washington. Food prices have hit record highs since war broke out in Ukraine, one of the world’s most important wheat exporters and a major supplier for the UN World Food Programme. Export-dependent countries in Asia and Africa have been hit the hardest.
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Local news
Scrap chicken tariffs, meat trade body urges as prices jump 17% in one year - more rises expected (Business Insider South Africa)
The price of chicken, which has already seen a jump of 17% over one year, will become more unaffordable if trade tariffs aren’t scrapped, the South African Association of Meat Importers and Exporters (AMIE) has said. The association is calling on the South African government to purge all trade tariffs on chicken products and place a three-year moratorium on all new tariffs to ensure consumers can still afford chicken. The association, which represents meat and poultry exporters and importers, also calls for VAT on chicken to be removed. If trade tariffs alone are removed, consumers stand to save about 33% on bone-in products and between 18-20% on chicken offal products, Paul Matthew, CEO at AMIE, said. “South Africans are under extreme financial pressure. As a country, we have to do everything possible to arrest poultry price increases, and the quickest and most effective way to do this is for the government to give the South African consumers relief by placing a three-year moratorium on imported poultry tariffs and the removal of VAT on poultry products,” said Matthew.
ActionAid writes to ED over food prices (NewsDay)
ACTIONAid Zimbabwe has written to President Emmerson Mnangagwa demanding a solution to the skyrocketing food prices. The non-governmental organisation, with branches across Africa, also wrote to all African Union members saying that increasing prices had a disproportionate impact on people living in poverty. “The war in Ukraine seriously disrupted the food supply chain. African countries are major trading partners with Russia and Ukraine for supplies of wheat, edible oil, and fertilizer. Half of the grains distributed by the World Food Programme through its food support programmes come from Ukraine and Russia,” part of the letter dated April 15 and addressed to Mnangagwa read. “The rising price of food has a disproportionate impact on people living in poverty, particularly women and children. The negative effects of the rising food crisis are exacerbated in humanitarian crises, such as the worsening climate-induced drought in the Horn of Africa, where over 14 million people are facing severe hunger and water shortages.”
Rwanda’s cross-border markets boost trade (Trade for Development News)
At some border points, as many as 40,000 people cross daily but this cross-border trade has for long been largely informal, unregulated, and insecure, particularly for female traders. In 2018 the Government of Rwanda, with support from partners, began building new cross border markets to make it easier for traders to do business across the border. Under the Inclusive Cross Border Trade Capacity Development Project, two modern cross border markets were developed in Karongi on the border with DRC, and in Butera District, bordering Uganda. The work involved establishing a national cross-border market framework to support the implementation of Rwanda’s cross-border trade strategy to grow two-way trade, and to set up management structures, regulations, operational guidelines and processes. In addition, market infrastructure to support cross-border trade was upgraded, including by providing sheds with stands for fresh produce, and setting up of livestock yards.
Cold rooms were set up to store milk, meat and other perishable commodities, shops and stalls were built to display dry commodities with longer shelf-lives, as were storage warehouses. In addition, transport and logistics contractors were signed up to streamline routes-to-market. The coronavirus pandemic inevitably disrupted trade, including by causing the closure of the border as governments limited movements to stem the spread of the disease. Plans to build cold-storage facilities at Karongi were put on hold and the warehouses are operating at quarter-capacity. However, positive results are beginning to show as movement restrictions are lifted.
Manufacturers blame fuel crisis on subsidy scheme (Business Daily)
Manufacturers have called on the government to abandon the fuel subsidy scheme in a bid to enable normal supplies of the precious commodity and avoid economic disruptions. Industry lobby, Kenya Association of Manufacturers (KAM), said the State should discontinue the stabilisation of pump prices and allow the global market forces to apply locally. “It is now painfully clear that the fuel supply system, and in particular the subsidy programme, has broken down, perhaps irretrievably so. “We are urging the government to abandon the subsidy system to enable stable supplies in the market,” KAM chairperson Mucai Kunyiha said. KAM’s push for the removal of the subsidy comes days after Energy and Petroleum Cabinet Secretary Monicah Juma said Kenya would continue subsidising prices until the global costs of crude ease. The government has been struggling to fully compensate marketers for keeping prices low despite the global rally in crude prices.
Kenya, Uganda traders sign deal to end barriers (The East African)
Kenyan and Ugandan traders have signed a memorandum of understanding to help end continual tiffs on non-tariff regulations. In a joint communique, the two sides pledged to harmonise policies on agriculture to reduce delays and cut down on bureaucracies in doing business. “The signing of this memorandum today will enhance agricultural trade between Uganda and Kenya, improve interdependence of agro-based industries in the two countries.
The document will advance and actualise the resolutions arrived during September 2021 at a trade symposium in Mombasa,” read the joint communique.
The business associations, seen as the most affected by the non-tariff barriers (NTBs), say having common standards of safety, sanitation and the list of documentations would help reduce unnecessary delays. The traders intend to file their proposals with respective export departments for agreeable standards.
Prices increase as farmers hoard 85 percent of maize (Business Daily)
Farmers are holding onto 85 percent of the total stock of maize in the country, starving grain millers of supplies. The supply of maize in the market has been low since the beginning of the year as farmers hoard their crop in anticipation of higher prices. The food balance sheet report from the Ministry of Agriculture indicates that growers are holding 8.5 million bags of maize stocks out of 10.1 million bags of 90Kgs, which has left millers facing a shortage of grain, subjecting consumers to high prices of flour. The report indicates that millers and traders are in possession of a paltry 1.5 million bags with the National Cereals and Produce Board (NCPB) holding zero grains. NCPB has been targeting to buy two million bags of maize from farmers.
Don’t blame us for global food challenges, negative trends in agric markets - Russian Embassy in Ghana (MyJoyOnline.com)
The Russian government has absolved itself of any blame for the current challenges, bringing the global food value chain to its knees. According to the Russian Embassy in Ghana, the current hardship is a result of high demand and rising prices of food, raw materials, and transportation services as part of post-Covid-19 recovery. It argued that the current situation in the agricultural space is not a result of happenings within the last two months, but due to a steady trend of happenings on the global stage in the last two years.
Vice President Dr Bawumia while addressing Ghanaians on the state of the economy at the National TESCON Training and Orientation Conference on April 7, noted that aside from the Covid-19 pandemic, the Russia-Ukraine war is adversely affecting the Ghanaian economy. He noted that the prices of food supplies have shot up because the two countries that are exporters of commodities such as wheat, and grains, have withheld supply due to the crisis.
By 2035, AfCFTA Implementation Could Almost Double Tunisian Exports to the rest of Africa (UNECA)
The Ministry of Trade and Export Development of the Republic of Tunisia organized on 15 April 2022 in Tunis a workshop to present stakeholders with its strategy for the implementation of the African Continental Free Trade Agreement (AfCFTA). The draft strategy identifies Tunisia’s comparative advantages, how the country can achieve its full trade potential within the context of the AfCFTA and accelerate its economic diversification.
An in-depth analysis of the structure of Tunisian trade that the country’s experts conducted with support from the Economic Commission for Africa, revealed significant potential markets for Tunisian exports to Africa in the agricultural, agri-food and industrial sectors (electrical industry, textiles and clothing). Promising countries of destination include Algeria, Morocco and Libya, as well as Ethiopia, Egypt, Senegal and Côte d’Ivoire.
Egypt, World Bank discuss priorities on framework of strategic partnership 2023/27 (Egypt Today)
Minister of State for International Cooperation Rania al-Mashat discussed Saturday with the World Bank representatives the framework of the strategic partnership between the country and the UN organization in the period from 2023 to 2027. Minister Mashat asserted that the articulation of the next framework comes in an intricate time, where the government vies for recovery from the economic impact of COVID-19 pandemic while reinforcing mechanisms of comprehensive and sustainable growth.
The minister said that Egypt is keen on acquiring help from the World Bank to stimulate growth in job creation by the private sector, bolster women empowerment, and improve the outcome of inclusion, human capital productivity, resilience in face of crises, governance, and regional integration.
The World Bank team presented in the meeting the stages of preparing the cooperation framework; recommendations of the diagnostic and methodological studies conducted by both the international entity and the government; and updates on the climate and development country report that is still under-progress but will be launched later in 2022.
That report is aimed at the identification of gaps, on the market, policy, and institutional levels, composing a challenge to Egypt’s endeavors to achieve transition into green economy.
Egypt’s exports to Malaysia hit $126.7M, joint projects in palm oil production to be established (Egypt Today)
Egypt’s exports to Malaysia hiked 35 percent during 2021, amounting to about $126.7 million, compared to about $94 million in 2020, according to the Minister of trade and Industry Nevine Gamea. Gamea elaborated that the most important items of exports include citrus, phosphates, chemical and mineral fertilizers and fruits. The minister added that Malaysian investments in Egypt amount to $60 million in 26 projects in the oil, gas, electricity, construction, contracting, trade, tourism and information technology sectors, pointing out that Egyptian investments in Malaysia have reached $20 million in the chemical and wood industries sector.
Government to aid rice importers (NewRepublicLiberia)
The Government of Liberia said it would not allow rice prices to be increased under its watch. The George Weah-led administration, which has its root in the fight against poverty and lifting citizens up, said they would do everything to ensure that rice remains stable on the market and affordable. AS a result of this, the government has decided to subsidize importers with an amount of US$12M. Subsidies to rice importers have been done by previous governments and removing them now will have a serious effect on the citizens.
Technical Committee to make recommendations concerning regressive mark-up price of medicines, states Commerce (Government of Mauritius)
A Technical Committee has been set up at the level of the Ministry of Commerce and Consumer Protection in July 2021 to look at the recommendations of the Competition Commission on the Pharmaceutical Sector and advise on the implementation of a regressive mark-up as advised by the World Health Organisation. This Committee will, at its next meeting, consider the proposals for regressive mark-up and make recommendations accordingly. The Minister of Labour, Human Resource Development and Training, Minister of Commerce and Consumer Protection, Mr Soodesh Satkam Callichurn, made this statement, today, at the National Assembly, in reply to a Private Notice Question pertaining to the present fixed mark-up regime regarding the price of medicines.
Speaking about authorising parallel imports of branded pharmaceutical products, the Minister pointed out that, in accordance with the Industrial Property Act 2019, branded products are intellectual property protected. Consequently, he observed, any person who wishes to import a branded product which is already protected will mandatorily need the express authorisation of the right holder.
African trade news
Regional economic growth slows amid new economic shocks (The New Times)
Sub-Saharan African will face an uphill task as the region struggles to recover from the 2020 recession induced by the Covid-19 pandemic, due to new economic growth challenges, compounded by the Russian invasion of Ukraine. The World Bank’s latest Africa’s Pulse, report estimates growth at 3.6 per cent in 2022, down from 4 percent in 2021 as the region continues to deal with new Covid-19 variants, global inflation, supply disruptions and climate shocks. Adding to the region’s growth challenges are rising global commodity prices, which are increasing at a faster pace since the onset of the conflict between Russia and the Ukraine.
“As African countries face continued uncertainty, supply disruptions and soaring food and fertilizer prices, trade policy can potentially play a key role by ensuring the free flow of food across borders throughout the region. Amid limited fiscal space, policymakers must look to innovative solutions such as reducing or waving import duties on staple foods temporarily to provide relief to their citizens,” said Albert Zeufack, World Bank Chief Economist for the Africa.
Africa’s Pulse (World Bank)
The latest edition of Africa’s Pulse says growth recovery has slowed as the region faces new economic threats, including new COVID-19 (coronavirus) variants, global inflation, supply disruptions and climate shocks. These challenges are compounded by Russia’s invasion of Ukraine, which has led to increasing international prices on commodities, particularly food staples, fertilizers, oil and gas.
Only 1.7% of Africans expected to live in extreme poverty by 2065, experts predict (WEF)
African Union Development Agency projections show that, while the share of people in Africa living in extreme poverty has not seen a great deal of downward movement over the last few decades (46 percent in the period 1996-2005 to a projected 35 percent in 2016-2025), progress is expected to be around the corner.
The next few decades promise to be ones of great progress for Africa as a whole. Mariam Saleh, Statista's Research Expert for North Africa, writes: "The continent's socio-demographics will experience a significant development, including considerable population growth. Moreover, improving health and social conditions will determine lower poverty levels as well as an increase in life expectancy." In addition, the source projects great improvements in educational attainment over the assessed period.
Innovative use of technology helping to solve challenges in Africa, says VP (The Guardian Nigeria)
Vice President Yemi Osinbajo has urged Africa to sustain innovative use of opportunities offered by the digital era. He said: “It is imperative that we keep the momentum going, so that the continent thrives, backstops innovation, creates wealth and contributes to overall global development. “I think, there is no question at all that with the right spirit of hard work and problem solving that we see all over the continent, the green shoots of technological innovation will transform the continent and impact positively on the rest of the world.” Osinbajo stated this in his remarks delivered virtually, on Saturday, at the Stanford Africa Business Forum, themed: ‘African Innovation Shaping the Global Future’, and hosted by the Stanford Business School.
“It is now well acknowledged that the tech sector in Africa holds a lot of promise. There are said to be almost 700 innovation hubs on the continent and venture capital funding continues to expand at a rapid pace. “This last frontier continent offers opportunities for using innovation to solve the huge deficits in financial inclusion, human capital development, access to electricity, clean energy, access to credit and payments processing.”
A New Frontier for African Pharmaceutical Manufacturing Industry (AfDB)
The COVID-19 crisis has exposed the fragility of global health systems and highlighted the need for countries to ensure a minimum level of supply security for health products. The pandemic revealed gaps in the provision of critical drugs and medicine and gave rise to damaging responses as countries started to impose bans on the export of certain key products. Africa is heavily reliant on imports: up to 70% of pharmaceutical products are imported. Local vaccine production capacities addresses less than 1% of the local demand in value. African governments—like many others worldwide—are now looking to develop their local pharmaceutical sectors to ensure supply security, make on the balance of payments, and create wealth more broadly.
The motivations to foster the development of a local pharmaceutical industry are almost always systematically a combination of all three rationales, justify the push for the industry’s possibilities, the optimal strategic path for the African continent should address simultaneously economic, public health, and strategic considerations, and focus on fostering the development of a sustainable African pharmaceutical industry by targeting primary diseases and market demand.
Two-month window for Kinshasa to align budget with EAC (The East African)
The Democratic Republic of Congo has only two months to align its budget with that of the East African Community following its formal entry. President Felix Tshisekedi is also expected to create a ministry — and appoint a minister — that will deal with the EAC matters. These are part of the requirements DRC is expected to put in place within the six-month period that the EAC has granted to DRC, to undertake internal and constitutional processes to ratify the EAC Treaty and submit to the EAC Secretary General.
“They have to quickly formalise membership in the various organs following the signing of the EAC Treaty of Accession last week in Nairobi,” said Johnson Weru, Principal Secretary, Ministry of Trade. “First of all they have to normalise their budget preparations and reading in readiness for the new financial year that begins on July 1, as per the requirements of the EAC budget,” said Mr Weru.
East Africa Business Council calls for action over rising air transport costs (The Citizen)
Business leaders have voiced their concern about skyrocketing air transport costs in the East African Community (EAC) region. They have called for a thorough review of aviation taxes, levies and charges so as to make them affordable to air transport users.
The East African Business Council (EABC), an apex body of the private sector associations, is spearheading appeals for urgent intervention. Deeply concerned by the exorbitant fares, taxes, fees and charges, the Arusha-based body will commission experts to work on the issue. They will scan through the regulations on aviation taxes, levies and charges on the cost of doing business in the EAC. High air transport cost in the EAC is blamed for frustrating aviation-dependent sectors such as tourism and export of fresh produce. Some business analysts have linked it to failure by the EAC partner states to liberalise their air transport systems.
MENA Economic Update: Reality Check: Forecasting Growth in the Middle East and North Africa in Times of Uncertainty (World Bank)
Uncertainty reigns with the unpredictable course of the war in Ukraine and the scientific uncertainty about the evolutionary path of the virus that causes COVID-19. The economic recovery may be uneven as regional averages mask broad differences between countries. Oil producers may benefit from elevated energy prices along with higher vaccination rates for COVID-19, while fragile countries lag. Per capita GDP, which is a more accurate measure of people’s standard of living, barely exceeds pre-pandemic levels due to a lackluster performance for most countries in 2020-2021. If these forecasts materialize, 11 out of 17 MENA economies may not recover to pre-pandemic levels by the end of 2022.
During times of uncertainty, it is important to not be overconfident about the region’s growth prospects. Simply put, forecasting is most valuable when uncertainty reigns. As its title suggests, this edition looks specifically at the reliability of various economic forecasts over the past decade, including those provided by the World Bank, International Monetary Fund and the private sector. The researchers find that growth forecasts have over the past decade been overly optimistic and are often inaccurate due to a lack of timely and transparent data. In the current context of global and regional uncertainty, getting the most accurate forecasts possible is even more important.
The Eight (8th) meeting of the Technical Steering Committee (TSC) of the West Africa Competitiveness Programme (WACOMP) was held virtually on 7 April 2022. The WACOMP, which is financed by the European Union, aims to support several selected value chains at national and regional levels in order to promote structural transformation and better access to regional and international markets. The Programme, which is led by the ECOWAS Commission, with the support of the UEMOA Commission, has one (1) regional component and sixteen (16) national components being implemented in ECOWAS Member States and Mauritania.
On behalf of Mr. Mamadou TRAORE, Commissioner for Industry and Private Sector, and Mr. Tei KONZI, Commissioner for Trade, Customs and Free Movement, Mr. Kolawole SOFOLA, Acting Director for Trade stressed the importance of fostering greater synergy between the regional and national components, which together would enable the region to take advantage of market opportunities at regional, continental, and international levels.
EAC business leaders eye CHOGM opportunities (The New Times)
More than 300 regional business leaders are set to attend the Commonwealth Business Forum, one of the major side events during the Commonwealth Heads of Government Meeting (CHOGM) slated for June 21 to 23, in Kigali. John Bosco Kalisa, CEO of the East African Business Council (EABC), on Monday, April 18, told The New Times that the Council is “planning to lead about 300 business delegates during the Commonwealth Business Forum.”
“CHOGM brings together than 50 member states from both developed and emerging countries and that provides a solid platform to engage and conclude trade and investment deals. It also provides an opportunity to discuss a number of binding constrains that hinder trade flows and regional integration.”
New guidelines for scaling up investments for youth in agri-food systems in Africa (Kenya Broadcasting Corporation)
The Food and Agriculture Organization of the United Nations (FAO) and the African Union Commission (AUC) have launched new guidelines for scaling up investments for and with youth in agrifood systems in Africa, during the 32nd Session of the FAO Regional Conference for Africa (ARC32).
The Investment Guidelines for Youth in Agrifood Systems in Africa provides practical “how to” steps to develop youth-focused and youth-sensitive investment programmes that see youth as partners in rural development, throughout all phases of the investment programme cycle. The guidelines are for those involved in designing and implementing agrifood investment programmes: governments, financial and technical partners, the private sector, civil society, and young women and men themselves.
The Board of Directors of the African Development Bank has approved an equity investment of €9.8 million to support venture capital investments in African start-ups, from seed to growth stages. The investment will help Cathay-AfricInvest Innovation Fund meet its target of securing €110m to invest in over 20 early-stage ventures across sub-Saharan Africa. The Innovation Fund focuses on financial inclusion (financial tech and insurance tech), retail and logistics platforms targeting online and mobile consumers, healthcare technologies, and pay as you go, off-grid energy technologies.
African Development Bank Group to launch new trust fund for the circular economy (AfDB)
The Board of Directors of the African Development Bank has approved the establishment of a €4 million Africa Circular Economy Facility to drive integration of the circular economy into African efforts to achieve nationally defined contribution (NDC) targets.
The Facility, a multi-donor trust fund, will operate over a period of 5-years and will receive an initial support of €4 million from the Government of Finland and the Nordic Development Fund. The board approval took place on 30 March 2022.
The circular economy is a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. Under the Paris Agreement, NDCs embody efforts by each signatory to reduce national emissions and adapt to the impacts of climate change. All 54 African countries are members of the Paris Agreement.
Global economy news
DDG Ellard: More cooperation, trade and stronger institutions needed to solve crisis (WTO)
We live in the world of polycrisis. The COVID-19 pandemic exacerbated global income inequality, both within and between countries, and set back economic progress by a decade or more. The war in Ukraine has triggered a sharp spike in energy prices and an alarming food security crisis. And all this occurs against the backdrop of climate change, the single biggest existential threat facing humanity. So, I would like to speak about the three separate but interrelated crises, the three Cs that have upended our lives — COVID, conflict, and climate — and how trade and the WTO can help tackle them.
Multilateralism “must be reimagined and fit for purpose,” DG tells Brazilian diplomats (WTO)
It is important that we start by recognizing that disenchantment and dissatisfaction with multilateralism and globalization — and talk of decoupling — had been building for years, long before the pandemic or the war in Ukraine. Even though global integration and solidarity had led to decades of relative peace and prosperity, and lifted over 1 billion people out of poverty, many were left behind: poor countries, and poor- and lower-middle-class people in rich countries. Shifts in the global balance of economic and geopolitical power also bred anxiety and resentment.
For all the criticism of supply chains early in the pandemic, trade has been a vital part of our response: cross-border supply chains were essential for mass-producing and accessing COVID-19 vaccines and other medical supplies. Trade has also been an important driver of economic recovery. Global merchandise trade rebounded strongly after the lockdowns, and has been at record highs since early 2021. Global trade grew roughly twice as fast as economic output last year, making external demand a key driver of growth for developing economies where domestic demand had been slower to recover. Looking back a few decades, open global trade, anchored in multilateral trade rules, has been enormously beneficial for growth and development.
Exclusive | Key nations closing in on global IP waiver for vaccines but India unhappy (Moneycontrol)
The United States, United Kingdom and the European Union are closing in on a compromise solution to calls for a global intellectual property (IP) waiver for COVID-19 vaccines at the World Trade Organization (WTO), but India is unhappy with the plan.
New Delhi is relieved that its proposal to make COVID-19 vaccine technology widely available across the world is not being stonewalled any longer, but stressed that the plan under discussion is tame and low-impact, people familiar with the development said. Nearly 19 months after India and South Africa’s proposal to temporarily suspend certain parts of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) so that vaccines and testing technology for COVID-19 could be easily shared, work on it has been painfully slow. Suspending parts of the agreement would allow countries to overcome legal challenges posed by patents to ensure the timely provisioning of affordable medical products.
How much blame for global vaccine inequity should the WTO bear? (Quartz)
In November 2020, only eight months after the World Health Organization (WHO) declared covid-19 a pandemic, the scientific community achieved the unimaginable: It delivered an effective vaccine against the new virus. Around the same time, several low- and middle-income countries, led by India and South Africa, began petitioning (pdf) the World Trade Organization (WTO), asking for a waiver of patents and intellectual property rights for all drugs, vaccines, diagnostics, and other technologies related to covid-19 for the duration of the pandemic. Western countries had already secured the rights to large volumes of vaccines that were yet to be made, and despite efforts such as Covax, countries in the so-called global south wanted to increase their covid-19 manufacturing capacity, and to produce diagnostics and therapeutics as needed, without having to pay pricey licensing fees to pharmaceutical companies. The research and development of covid-19 treatments had been heavily subsidized by governments, and pharma companies were guaranteed to profit from vaccines.
With the virus in all corners of the world, and an understanding that global herd immunity could help prevent variants from emerging and end the pandemic in the shortest possible timeframe, waiving the intellectual property protections granted within the WTO by the Agreement on Trade-Related Aspects of Intellectual Property Rights, or TRIPS, should have been a no-brainer. Instead, a year-and-a-half after it was proposed, there is still no consensus on the waiver—other than a tentative leaked compromise with a much narrower scope.
How the War in Ukraine Illustrates the Weakness of US Policy Toward Africa (Just Security)
At a United Nations Security Council emergency meeting on Feb. 21, as Russia prepared for a full-scale invasion of Ukraine, Kenya’s U.N. Ambassador Martin Kimani affirmed that “we must complete our recovery from the embers of dead empires in a way that does not plunge us back into new forms of domination and oppression.” Praised around the globe, his speech led many to assume that, in the face of Russia’s invasion of Ukraine, African states would largely stand with Ukraine and the West, and against Russia. The assumptions were based not on moral conviction alone; many African countries receive substantial assistance from the United States and Europe, while others rely on both Ukrainian and Russian wheat and other agricultural commodities exports, which are disrupted by the conflict.
African leaders are divided with respect to the conflict between Russia and Ukraine, and their interests and relations with the United States and Russia
many African countries, including the biggest recipients of U.S. assistance, are unlikely to automatically take a strong stance against Russia. For instance, South Africa, the United States’ largest African trade partner, and recipient in 2020 of more than $1.1 billion of U.S. assistance, also has significant ties with Russia. President Cyril Ramaphosa explained his country’s abstention from the March 2 vote by saying “ the resolution did not foreground the call for meaningful engagement,” and he called for “dialogue between the parties.”
War in Ukraine puts more pressure on Africa’s grain-importing countries (BusinessLIVE)
The war in Ukraine will put further pressure on grain-importing countries in Africa and Asia as a reduced number of vessels for delivering cargoes drives up shipping rates, according to the head of the International Chamber of Shipping (ICS).
Trade flows of grains are undergoing significant shifts, he said, and the distance that ships will have to travel to get shipments from the Americas to customers is further than voyages from the Black Sea. ”This will have repercussions for poorer countries in Africa, which can ill afford to pay huge amounts more for their grain,” Poulsson said.
“For the here and now, freight rates will stay high and may go a little higher,” said Poulsson, whose organisation represents shipowners and operators that cover about 80% of the world’s merchant trade. “But it will be volatile because things can change.”
War dims global economic outlook as inflation accelerates (IMF Blog)
Global economic prospects have been severely set back, largely because of Russia’s invasion of Ukraine. This crisis unfolds even as the global economy has not yet fully recovered from the pandemic. Even before the war, inflation in many countries had been rising due to supply-demand imbalances and policy support during the pandemic, prompting a tightening of monetary policy. The latest lockdowns in China could cause new bottlenecks in global supply chains.
In this context, beyond its immediate and tragic humanitarian impact, the war will slow economic growth and increase inflation. Overall economic risks have risen sharply, and policy tradeoffs have become even more challenging. Compared to our January forecast, we have revised our projection for global growth downwards to 3.6 percent in both 2022 and 2023. This reflects the direct impact of the war on Ukraine and sanctions on Russia, with both countries projected to experience steep contractions. This year’s growth outlook for the European Union has been revised downward by 1.1 percentage points due to the indirect effects of the war, making it the second largest contributor to the overall downward revision.
Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development Communique (IMF)
The pandemic has imposed huge costs. Many impediments to the global recovery remain, with growth prospects increasingly divergent and uncertain. GDP growth over the medium-term in many emerging market and developing economies (EMDEs) is projected to fall below pre-pandemic levels. Investing to spur recovery is highly constrained by limited fiscal space and rising debt vulnerabilities. Rising inflationary pressures, driven by spikes in food, energy and commodity prices, and pandemic and conflict-related disruptions in supply, international trade, and financial markets exacerbate output losses and inequality. Urgent global action is needed to prevent hunger and food crises among vulnerable countries and poorer households and avert financial distress in highly indebted EMDEs. Close attention to the impact of refugee flows and the internally displaced is needed. Strong multilateral cooperation is crucial to preserve multilateral rules-based trade, ensure food and energy security, protect financial stability, and sustain increased financing to developing economies.
IMF’s new lending facility to cushion member states from economic shocks (The East African)
The International Monetary Fund (IMF) has created a new lending facility to help build resilience of its member countries against economic shocks. The facility, dubbed ‘The Resilience and Sustainability Trust (RST)’, becomes a third pillar of the Fund’s lending toolkit after the General Resources Account and the Poverty Reduction and Growth Trust. It comes into effect on May 1 and aims to build a fund of at least $45 billion in resources to help build resilience against long-term risks to balance of payments stability amongst member countries. The facility seeks to provide policy support and affordable longer maturity financing of 20 years with a 10.5-year grace period.
FOCUS: G-20 finance chief meeting to highlight rift, not post-pandemic unity (Kyodo News+)
Finance chiefs of the Group of 20 major economies will likely do little more than highlight the deep rift that has formed among member nations next week when the forum holds its first ministerial-level meeting since Russia’s invasion of Ukraine. G-20 members, including Russia and the United States, have a plethora of issues to negotiate if they hope to pull the world’s economy out of the COVID-19-induced doldrums and mitigate the impact of the Ukraine crisis.
“The G-20 has played a role in identifying global problems and raising awareness of them,” Atsushi Takeda, a chief economist of the Itochu Research Institute, said. “But this time, whether it can function is entirely dependent on who will be at the meeting.” The potential division among members, who represent 80 percent of the world’s gross domestic product, would serve as a significant setback at a time when coordinated efforts are vital to address emerging and ongoing challenges, economists say.
Response to rising hunger threatens climate goals — experts (E&E News)
The world’s food system was under strain even before Russia invaded Ukraine. Now — compounded by the war’s effect on trade and a corresponding spike in global fuel prices — it faces two dangerous and intertwined crises. In the short term, Russia’s war on Ukraine increases the risk of extreme hunger for millions more people. The danger is particularly acute for low-income countries that depend on food imports. And countries such as Ethiopia and Yemen already are dealing with hunger fueled by conflict. Over the longer term, experts are concerned that the response to these problems could lead to further use of fossil fuels and an expansion of unsustainable agricultural practices. Continuing on this path, they say, could exacerbate the climate crisis and deepen poverty and food insecurity.
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Trade Facilitation and Gender Dimensions in South Africa (World Bank)
For South Africa — like elsewhere around the globe — maintaining trade flows during the COVID-19 pandemic has been crucial. The import and export of essential food, medical items, and maintaining international supply chains have helped cushion some of the pandemic’s heavy impact on lives and businesses. Traditionally, South African traders have suffered high costs and delays due to complicated and inefficient border procedures, especially at the land borders accessing main corridors – and at seaports serving continental markets. Several efforts have been made to reduce these burdens and make it easier for South African businesses to trade and integrate into regional and global supply chains. However, there is more work that can be done to further enhance the trade environment and ensure that the benefits of trade facilitation are equally afforded to men and women. To identify specific challenges that men and women face in cross-border trade and determine where further reforms can be made, the World Bank Group completed a study on Trade Facilitation and Gender Dimensions in South Africa. Traders, customs brokers and freight forwarders were interviewed.
Heaviest Downpour in Six Decades Shuts Key South African Port (BloombergQuint)
South Africa suspended shipping at its main port in Durban after the heaviest rains in more than six decades and resultant flooding damaged roads leading to the harbor. Operations at Durban Terminals were suspended on Monday night, Transnet SOC Ltd. said in an emailed statement. The harbor is a key trade route for South Africa and its landlocked neighbors including Botswana, Zimbabwe and Zambia. “Shipping has been suspended until further notice as a result of environmental damage caused by the adverse weather, and vessels on berth are on standby,” Transnet spokeswoman Ayanda Shezi said in statement. “There have been no major incidents reported at the terminals thus far.”
Nam-Zambia rail line gets green light (Namibian)
IT has officially been proven that extending Namibia’s rail line to connect Namibia and Zambia is commercially and environmentally viable, and would have various economic benefits. This comes following a feasibility study on the extension of Zambia’s rail network to Namibia, which is expected to cover 770km. The study was commissioned by the Ministry of Works and Transport and carried out by Mumbai-based consultant MR Technofin.
The main aim of the project is to stimulate the development of mining activity along the corridor between Walvis Bay and Lubumbashi in the Democratic Republic of Congo (DRC).This would allow Zambia, Namibia and the DRC to export copper and other minerals to buyers in China, Europe and America. Namibia has been instrumental in the copper trade – especially of the landlocked Zambia and conflict-stricken DRC.
Last year alone, Namibia exported huge amounts of copper through Walvis Bay.
Deputy director of industrialisation and trade Michael Humavindu says any opportunity to extend trading infrastructure within the Southern African Development Community, the Southern African Customs Union area and Africa is welcome. “Specifically with Zambia, copper and hopefully animal feed will be vital for our downstream sectors. We can also collaborate with them in terms of sugar production. If indeed it is viable, let us explore the option of financing by the private sector. There are models that allow such options,” he says. Namibia Trade Forum chief executive officer Stacey Pinto says while the rail line was targeted to enable the mining sector, there are other industries which can be positioned along the railway line, which would help facilitate trade across borders.
Regional And Global Opportunities Beckon For Zim’s Sugar Industry, New Analysis Shows (263chat.com)
A new focus report, produced by Oxford Business Group (OBG) in partnership with the Zimbabwe Sugar Association, explores the positive impact that the African Continental Free Trade Area (AfCFTA) is expected to have on the country’s sugar industry by providing access to untapped markets across the continent against a backdrop of rising demand. Titled “Sugar in Zimbabwe: Focus Report”, the report provides in-depth analysis of the local industry’s history, operations, strategic and social importance, and broader growth story, in an easy-to-navigate and accessible format, focusing on key data and infographics. The study examines the challenges that local producers face, which range from an unpredictable water supply and outdated ways of working to a difficult broader economic landscape.
Mombasa port transshipment business grows (Business Daily)
Different shipping lines have opted for Mombasa port due to what they claim are delays at the Dar es Salaam port. The Port of Mombasa is recording increased transshipment business as more ships evade berthing “delays and waiting” at the Dar port. Over the past month, Mombasa has handled more than 10 feeder ships transshipping Port of Dar es Salaam containers advancing her opportunities for a regional transshipment hub. MSc Shipping Line, the second global liner, has confirmed using the port of Mombasa until the situation normalises in Dar es Salaam. Others include CMA CGM and Maersk Shipping Lines.
Kenya Airways cargo volume up 29pc on capacity revamp (Business Daily)
The volume of cargo transported by Kenya Airways (KQ) went up by 29 per cent in the year ended December 2021 compared to a similar period in 2020 mainly on the introduction of more cargo capacity by the carrier at the height of the Covid-19 pandemic. KQ, as the airline is known by its international code says in its latest annual report that cargo tonnage on both passenger belly and freight aircraft increased 29 percent to close at 63, 726 tonnes as at December 2021, up from 49, 419 tonnes in December 2020. Last year’s performance translates into an average of 5, 310 tonnes per month compared to an average of 4, 118 tonnes per month in the year ended December 2020.
The freighters helped the airline capitalise on the cargo business on some of the regional routes where it operates the much smaller Embraer jets, which provide reduced belly cargo capacity. The move was meant to see KQ increase the available capacity at the Jomo Kenyatta International Airport by over 100 tonnes, coming as a boost to exporters, especially horticulture farmers.
Cargo accounted for 19 per cent of its Sh70.22 billion sales in the year to December 2021. In the year ended December 2020, cargo accounted for Sh9.01 billion of the airline’s Sh52.80 billion sales.
State punishes fuel marketers for exporting oil amid crisis (Business Daily)
Oil marketers that increased fuel exports from last month will have their allocations slashed and handed over to dealers who recorded increased sales locally in a bid to ease the ongoing fuel shortage. Energy and Petroleum Regulatory Authority (EPRA) said the changes will be effected in the next three import cycles as the State moves in to punish dealers behind the ongoing nationwide shortage of diesel and petrol. EPRA says investigations have revealed that several dealers gave priority to the export market in quiet protests over delayed compensation from the State for the unchanged prices. Oil marketers traditionally allocate 65 percent of their fuel imports to the local market and 35 percent to the transit market.
A number of the marketers increased the share of fuel they sell to the neighbouring countries to over 60 percent to ease their cash crunch given that they are paid instantly unlike in Kenya where the State compensation delays.
Six forces pulling down Nigeria’s economy (Businessday)
Economists have painted another unsavoury picture of the Nigerian economy and their prognosis isolates six factors that are piling woes on already beleaguered businesses and households, according to a report analysed by BusinessDay. Firstly, they said Africa’s largest economy, which is yet to recover from the destruction caused by two economic contractions in five years, will face more slowdown in growth, with the next round of GDP figures projected to come in below population growth levels. Nigeria recorded a real GDP growth of 3.4 percent in 2021 but with agriculture, the single largest contributor to GDP, and oil and gas, as well as industry, challenged, the outlook for the whole economy in 2022 is poor. The Economist Intelligence Unit (EIU) in a March 23 report expects Nigeria’s economic growth to slow more than expected in 2022 as power-supply issues, high inflation and expected monetary tightening hurt output.
Vehicle importers kick as Customs implements ECOWAS common tariffs (The Guardian Nigeria)
The Nigeria Customs Service (NCS) has commenced the implementation of the new version of the Economic Community of West African States (ECOWAS) Common External Tariff, (CET) 2022-2026 on imported vehicles. According to the NCS, the migration from the old CET (2017-2021) to the new version, which is in line with the World Customs Organisation (WCO), takes immediate effect. In a statement, yesterday, the Customs spokesman, Timi Bomodi, said the new rates apply to both new and used vehicles imported into the country. New and used vehicles are subjected to a National Automotive Council (NAC) levy of 20 and 15 per cent respectively. The Service also confirmed the reduction of import duty on imported vehicles from 35 to 20 per cent.
What You Need To Know About The Rwanda-UK Migration Deal To Be Announced Today (KT PRESS)
UK Home Secretary, Priti Patel and the Minister of Foreign Affairs and Cooperation, Dr. Vincent Biruta, will announce the partnership today. The United Kingdom’s Home Secretary, Priti Patel, is in Rwanda, where she will sign and announce, together with the Minister of Foreign Affairs, Dr. Vincent Biruta, what has been termed as the “Rwanda-UK Migration and Economic Development Partnership”. In a statement seen by KT Press, to be issued later today, both countries say deep global inequalities are driving millions of people from their homes in search of opportunity, at the same time as millions are forcibly displaced by conflict, persecution, and other threats to safety.
It is believed that by relocating migrants to Rwanda and investing in personal development and employment for migrants, the two nations are taking bold steps to address the imbalance in global opportunities which drives illegal migration, while dismantling the incentive structures which empower criminal gangs and endanger innocent lives.
Egypt’s trade balance decreased by 32.3% in January 2022: CAPMAS (Egypt Daily News)
The Central Agency for Public Mobilisation and Statistics issued on Wednesday a monthly bulletin on foreign trade data for January 2022, in which Egypt recorded a deficit value in trade balance reaching $2.44bn in January 2022, down from January 2021’s $3.60bn — a decrease of 32.3%.
However, the value of exports increased by 34.5%, reaching $3.99bn, up from $2.97bn, due to an increase in the value of some commodities such as petroleum products by 107%, crude oil by 66.5%, ready-made clothes by 46.8%, and plastics in their primary forms by 76.3%. On the other hand, the value of other exports decreased in January 2022, with fertilisers decreasing by 32.6%, fresh oranges by 13.6%, furniture by 8.5%, and ceramic tiles and sanitary ware by 14.3%.
Furthermore, the value of imports decreased by 2.2%, reaching $6.43bn, down from $6.57bn, due to a decrease in the value of some commodities such as crude oil by 0.6%, soybeans by 16.4%, wheat by 42.6%, and corn by 37.1%.
How did Egypt adopt national strategies to reduce negative impacts of climate change? (EgyptToday)
The Information and Decision Support Center (IDSC), which affiliates with the cabinet, released on Tuesday a video on the government’s efforts in reducing climate change impacts. The Ministry of Environment via the Project of the Sustainable Management of Persistent Organic Pollutants succeeded in getting rid of more than 2,000 tons of high-risk stagnant and abandoned pesticides and oils contaminated with PCBs, which are listed on The Stockholm Convention on Persistent Organic Pollutants. Egypt was one of the first signatories to this convention, confirming its commitment to international conventions.
Tunisia Presents National Strategy for the Implementation of the AfCFTA (UNECA)
The Tunisian Ministry of Trade and Export Development will organise on Friday 15 April 2022 a workshop to validate the national strategy for the implementation of the African Continental Free Trade Area (AfCFTA). This meeting will be an opportunity to present the national strategy developed by the Tunisian Ministry of Commerce and Export Development with the support of the Economic Commission for Africa (ECA) and the European Union. The strategy analyzes the comparative advantages of Tunisia to better promote the diversification of its economy and the development of value chains, with the aim of enabling the country to make the most of opportunities brought by the AfCFTA and bring new dynamism into Tunisia’s economic integration in intra-African trade. This workshop is being financed by the European Union. Participants will include Tunisian officials as well as national and international experts in a range of fields including customs, international transport, foreign trade, regional integration, as well as private sector and civil society.
Towards a successful implementation of AfCFTA: ECA supports Sao Tome and Principe (UNECA)
From 28 February to 3 March 2022, an ECA SRO-CA team, in cooperation with the African Union Commission and with the financial support of the European Union (EU), organized an awareness mission in Sao Tome on the African Continental Free Trade Area (AfCFTA) and held discussions on prospects of partnerships for the promotion of economic diversification and sustainable development with the Government of Sao Tome and Principe (STP).
African trade news
AfBD, AU sign $11.4m agreement to transform continent into global economic powerhouse (TheCable)
African Development Bank (AfDB) says it has signed a protocol of agreement with the African Union (AU) to strengthen the implementation of Agenda 2063. Agenda 2063 is Africa’s blueprint and master plan for transforming Africa into the global powerhouse of the future.
According to a statement issued on Tuesday by the communication and external relations department in Abuja, the agreement is also to implement the AU’s institution capacity building project in Addis Ababa, Ethiopia. “The project is expected to bolster the AU’s efforts to implement Agenda 2063. Adopted in 2015, Agenda 2063 is the African Union’s vision for an integrated, prosperous, and peaceful Africa driven by its citizens and representing a dynamic force in the global arena,” the statement reads.
“The project cost, amounting to $11.48 million, is being supported with a grant from the Bank Group’s concessional financing window. It was approved by the board of directors in February 2022. The signing of the protocol of agreement signals the start of the implementation phase of the project.”
Eyes on AfCTA to steer Africa’s economic rebound from disruptions (The East African)
The Africa Continental Free Trade Area (AfCTA) agreement could be the continent’s Marshall Plan for recovery as the region faces a further economic disruption from the Russia-Ukraine war. Economists from the UN Economic Commission for Africa (ECA) say the continent must now implement the agreement fast as it presents insurance for the future. The experts had this week gathered for a webinar convened by the East African Business Council (EABC) to discuss the turmoil caused by Covid-19 as well as the Russian invasion of Ukraine. Mama Keita, the director of ECA sub-regional office for Eastern Africa noted that “Africa’s recovery has been hindered by higher inflation, tighter global financial conditions, rising interest rates and the Ukraine crisis further compound the situation.” ECA says the Ukraine crisis has exacerbated the economic and social vulnerabilities of African states, with food, oil and fertiliser prices reaching 14-year highs.
UK government to support AfCFTA with 35m pounds (News Ghana)
United Kingdom’s International Trade Secretary, Anne-Marie Travelyan, has announced a new UK government programme to support the implementation of the African Continental Free Trade Area (AfCFTA). Through the AfCFTA Support Programme, the Foreign Commonwealth and Development Office will provide up to 35million pounds to provide trade facilitation and trade policy support to the AfCFTA Secretariat and member states through Trademark East Africa, Overseas Development Institute and other development partners. The fund will go to support AfCFTA negotiations and agreement implementation making it easier for nations across Africa to trade and grow together. According to Travelyan, the AfCFTA is a shining example of the power of African unity and the power of trade as a force for good aside helping to overcome barriers to trade whilst promoting investment and unlocking growth.
SACU members urged to work together in finding solutions to global challenges (News Ghana)
President Mokgweetsi Masisi of Botswana on Tuesday urged members of the Southern African Customs Union (SACU) to work together in finding solutions to global challenges.
SACU countries, namely Botswana, South Africa, Eswatini, Lesotho and Namibia, continue to face social and economic impacts of COVID-19, which resulted in the overall weighted growth contraction of 6.3 percent in 2020 for the region compared to a positive growth of 0.3 percent in 2019, according to Masisi.
In his remarks during the SACU investment roundtable in Gaborone, Botswana’s capital, Masisi said life was filled with harrowing experiences such as the closure of many businesses resulting in losses of jobs and incomes for workers and reduced corporate tax revenues for governments within the SACU region. Masisi, however, said the challenges arising from the pandemic also present an opportunity for the region to create and develop production capacity that will fill the commodity gaps and allow for increased production in the affected sectors. “Therefore, it is of critical importance for SACU members to work together to advance regional integration’s objectives and find solutions to these global problems and challenges facing us,” said Masisi.
EAC chief weighs in on South Sudan’s integration into Customs Union (The New Times)
Fully integrating South Sudan into the East African Community (EAC) Customs Union is a process, the trading bloc’s Secretary General Peter Mathuki, has said, confirming the secretariat was doing its best to make it happen. Mathuki made the disclosure on Tuesday, April 12, as he addressed a virtual press conference from his offices in Arusha, Tanzania.
Last month regional lawmakers raised concerns over the slow pace of integrating South Sudan into the EAC Customs Union ever since the country was admitted into the six-member bloc six years ago. “There is a roadmap that actually defines how we are going to fully integrate them. The roadmap is still in progress. We are trying our level best to fully integrate them,” Mathuki said.
Plans to Develop a Regional Agricultural Commodity Exchange Centre (COMESA)
Plans are underway to establish a regional Agricultural Commodity Exchange Centre as part of the implementation of the 2021-2031 strategy for the Alliance for Commodity Trade in East and Southern Africa (ACTESA). The centre shall link small-scale farmers to national, regional and international markets within the Common Marker for Eastern Africa (COMESA) the East African Community (EAC and the Southern Africa Development Community (SADC) tripartite framework and later the African Continental Free Trade Area (AfCFTA). According to the Chief Executive Officer of ACTESA, Dr John Mukuka, the centre will provide a platform for buyers and sellers to conduct business of their agricultural products through a team of brokers. Once established the commodity exchange will reduce transaction costs, by accommodating people active in the production, trade, processing and consumption of commodities.
Sub-Saharan African Growth Slows Amid Ongoing and New Economic Shocks (World Bank)
As the Sub-Saharan African economy struggles to recover from the 2020 recession induced by the COVID-19 (coronavirus) pandemic, the region now faces new economic growth challenges, compounded by the Russian invasion of Ukraine. The World Bank’s latest Africa’s Pulse, a biannual analysis of the near-term regional macroeconomic outlook, estimates growth at 3.6 percent in 2022, down from 4 percent in 2021 as the region continues to deal with new COVID-19 variants, global inflation, supply disruptions and climate shocks. Adding to the region’s growth challenges are rising global commodity prices, which are increasing at a faster pace since the onset of the conflict between Russia and the Ukraine. As top world exporters of food staples, Russia—the world’s largest exporter of fertilizers—and Ukraine account for a substantial share of wheat, corn and seed oil imports, all of which may be halted if the conflict persists. While Sub-Saharan economies are also likely to be impacted by tightening of global conditions and reduced foreign financial flows into the region, the analysis notes that the high fuel and food prices will translate into higher inflation across African countries, hurting poor and vulnerable citizens, especially those living in urban areas. One point of concern is the increased likelihood of civil strife as a result of food and energy-fueled inflation, particularly in this current environment of heightened political instability.
“As African countries face continued uncertainty, supply disruptions and soaring food and fertilizer prices, trade policy can potentially play a key role by ensuring the free flow of food across borders throughout the region. Amid limited fiscal space, policymakers must look to innovative solutions such as reducing or waving import duties on staple foods temporarily to provide relief to their citizens,” said Albert Zeufack, World Bank Chief Economist for the Africa.
Africa House notes investment potential in Uganda, Guinea projects (Engineering News)
Research and consulting company Africa House will from May 15 to 20 host a delegation of investors and business leaders in Uganda to better understand the opportunities for investment and the rationale for setting up a local presence in the country. The country is poised for immense economic growth once more phases of the East African Crude Oil Pipeline (EACOP) are developed. The pipeline will comprise upstream operations, with the Tilenga and Kingfisher oil extraction sites being developed jointly by fuels company Total Energies and China National Offshore Oil Corporation, through a $10-billion development agreement, as well as midstream – transport, refinery and gas processing – operations and downstream operations, including distribution, marketing and sales.
The pipeline will connect a new oil export terminal, to be built north of the port of Tanga, in Tanzania, to the Lake Albert Oil Development, in Hoima, Uganda. The bulk of the project is based in Tanzania, with 296 km of pipeline in Uganda. Discussing other prominent investment opportunities in Africa, Bonnett and Van Tonder mention the Nimba and Simandou iron-ore projects, in Guinea.
EU uses development aid to strongarm Africa on migration (DW)
In raw numbers, the European Union and its members provide the most development aid in the world, about €75 billion in 2019 alone. About one-third of that aid currently goes to Africa. With historical inequities keeping African nations at a disadvantage in negotiations, EU countries often use development funds as levers for their own political agendas. In recent years, migration control has been at the forefront of these efforts.
Africa has been the focus of Western European development policy since the precursors to the EU were established in the 1950s. With large parts of Africa still colonized by the inheritor states of the European empires, structures such as the European Development Fund aimed to continue the development policies of the former empires, historian Sara Lorenzini said: “The idea was to build European-style welfare states in the colonies and for Europe to retain geopolitical weight as a third force during the Cold War.”
Political agendas continue to shape where aid goes — and which projects get prioritized. “The main agenda in Africa continues to be geopolitical,” said Jan Orbie, the director of the Centre for EU Studies at Ghent University. “In the past 10 years, development policy has become more connected to migration, to energy policy, to trade.”
One instrument that exemplifies the European Union’s focus on migration control is the EU Emergency Trust Fund for Africa, which just concluded its six-year funding period. After large numbers of irregular migrants reached the European Union in 2015, EU policymakers were eager to prevent a repeat. A result of the ensuing negotiations was the now roughly €5 billion in “emergency” project funding for the EUTF, largely redirected from existing development funds. Its purpose was to dispense money quickly — without much parliamentary oversight and the bureaucracy it would bring. “The trust fund illustrates that the EU can act very quickly, efficiently and cohesively when it wants to,” Orbie said. “Whether that’s a good thing is another question.”
The funds are officially meant to “address root causes of irregular migration” in the recipient countries. But the priority of policymakers seems to be to prevent migrants from arriving at EU borders, as an Oxfam report found. In one board meeting, the head of the Directorate General for European Neighbourhood Policy and Enlargement Negotiations, Christian Danielsson, happily asserted how the EUTF for Africa had “confirmed its value in supporting an effective management of migration flows from, to and within” North Africa.
Afreximbank Fast-Tracks Africa Trade Exchange on War in Ukraine (Bloomberg Tax)
The African Export-Import Bank plans to accelerate the launch of an Africa Trade Exchange that will improve access to food and fertilizer at more favorable rates at a time of rising prices. The lender is developing the exchange alongside the United Nations Economic Commission for Africa and it can start operating in three weeks, President Benedict Oramah said in an online briefing Tuesday. That’s in addition to a $4 billion trade-financing program initiated last week to manage the impact of Russia’s war with Ukraine on African economies and businesses.
AU calls for harmonisation of African Energy Information System (IPPmedia)
The meeting, which took place on 17th March 2022 in Agiers, also sought political guidance from the Ministers and their governments on how to support and to ensure National Energy Information System (NEIS) effectively functions to process national data, with the view to resolve energy data demand and disparity across the continent. The African Energy Information System (AEIS) is a continental energy database which was developed in 2012 as part of the member states energy data demand. In her key note address, H.E. Dr Amani Abou-Zeid, Commissioner for Infrastructure and Energy at the African Union Commission said, ‘‘we have been striving to harmonise our energy data on the continent as well as ensure that we have a hosting environment for Africa’s energy data. These efforts have been reinforced and improved through the existing African Energy Information System (AEIS), which was revamped in 2020. The revamp eliminates a lack of credible and quality energy data which is currently a big challenge on our continent’’.
Currently, AFREC is also supporting eleven (11) AU Member States namely: Algeria, Egypt, Kenya, Botswana, Burkina Faso, Nigeria, Congo, Gabon, Lesotho, Zimbabwe and Namibia, to establish or improve national energy information system and provide capacity building.
With over 600 million without access to electricity in Africa in 2022, urgent solutions are required. In this regard, signing deals to expand energy production is key to addressing energy poverty and the continent’s energy market stakeholders need to ensure they push for local content and address issues such as gender diversity to unlock the full potential of the energy sector. At the same time, collaboration among African governments to address a lack of adequate funding within the sector and to bring deals into concrete projects that create jobs and address energy security is also vital. These were the main messages by industry stakeholders participating in a webinar hosted by the African Energy Chamber (AEC) (www.EnergyChamber.org), on Wednesday, April 13, 2022.
“Africa has the money to build its own infrastructure, it is getting half a billion US dollars by selling oil and gas per day. We just need to direct that money towards infrastructure development. At the same time, Africa also needs to improve its taxes on energy to attract investments and to avoid majors exiting the market. Chevron and other big firms are leaving the west African market because fiscal terms are not making sense, there are high taxes,” stated Leoncio Amada Nze Nlang.
Europe should Decarbonize while Africa Industrializes (APO)
While western nations are calling for the abrupt end to fossil fuel utilization in Africa, countries such as the UK and Norway continue to hold licensing rounds intended to scale-up exploration and production. With Africa’s socioeconomic development hinging on the exploitation of the continent’s oil and gas resources, this hypocrisy could spell travesty for Africa. As western organizations such as Greenpeace move to end African hydrocarbon investment in the name of climate change, shouldn’t European nations move to decarbonize first?
According to the Eurostat, the EU operates a single market made up of 27 countries; total GDP in 2019 equated to €16.4 trillion; the EU accounted for 15% of the world’s trade in goods; and economic growth is projected to increase by 4% in 2022 and 2.8% in 2023. However, countries in the EU are also responsible for approximately 18% of global carbon dioxide emissions produced since the industrial revolution began.
despite holding some of the world’s largest oil, gas and coal reserves – estimated at 125.3 billion barrels of crude oil, 620 trillion cubic feet of gas and nearly 16.4 billion short tons of coal -, Africa’s development has been slow, largely due to natural resource exports, refined product imports, the lack of adequate infrastructure and the lack of adequate investment and reinvestment in key sectors. Representing the world’s fastest growing population; the youngest population; and holding some of the world’s fastest growing economies, Africa has the chance to accelerate development across its entire economy, driven by the exploration, production and utilization of its oil and gas reserves.
Bank Group’s Strategy for Addressing Fragility and Building Resilience in Africa (2022-2026) (AfDB)
Areas affected by conflict and fragility in Africa are still being left behind. Countries that have experienced long-running fragility face higher poverty and food insecurity, wide gaps in infrastructure and public services, low economic diversity, and deep institutional deficits. They are vulnerable to multiple crises, including conflict and political instability, economic shocks, health threats and climate disruption.
Global economy news
Global trade needs more supply diversity not less (IMF Blog)
The demand and supply shocks unleashed by the pandemic were expected to lead to a dramatic collapse in trade, but international commerce has proven more resilient than during previous global crises.
While goods trade fell sharply in the second quarter of 2020, it bounced back to pre-pandemic levels later in the year. The decline for services in 2020 (such as tourism) was worse, and has recovered more slowly, given persistent restrictions to contain infection in some countries. Factors specific to the pandemic help explain these trade patterns.
Global drug makers say IP waiver won’t improve Africa’s access to Covid-19 shots (BusinessLIVE)
Multinational pharmaceutical companies have criticised the push by SA and India to introduce an intellectual property (IP) waiver on Covid-19 vaccines. They say that lack of infrastructure rather than patent barriers stand in the way of Africa’s access to jabs. SA and India launched a campaign 18 months ago for the World Trade Organization to waive patents on Covid-19 vaccines, tests and treatments for the duration of the coronavirus pandemic, to enable large-scale production of cheap generics. Thomas Cueni, director-general of the International Federation of Pharmaceutical Manufacturers and Associations, said on Wednesday that vaccine nationalism, export bans and lack of support for international vaccine-sharing mechanism Covax were responsible for last year’s inequitable distribution of shots, which saw Africa sent to the back of the queue.
“These were the causes of vaccine inequity last year, and not as many would wish you to believe, something that can be solved with a waiver on IP on Covid products,” he said in an online press briefing. The problem had now shifted as Covid-19 vaccines were in plentiful supply, but poorer countries lacked the capacity to administer the jabs, he said.
WTO-WEF publication looks at policy approaches to harness “TradeTech” potential (WTO)
TradeTech such as artificial intelligence (AI), blockchain and distributed ledger technology (DLT) and the internet of things (IoT) all offer the potential to facilitate trade by improving efficiency, reducing costs and providing greater resilience in supply chains, the publication notes. But international policy coordination is required, in particular the development of explicit rules through trade agreements to provide legal certainty on a variety of emerging issues related to the digital field. “The publication we’re launching today builds on extensive consultations with private sector experts and is a fantastic example of public-private collaboration,” WTO Director-General Ngozi Okonjo-Iweala said at the launch of the report. “It identifies the five key building blocks of trade digitalization and discusses how trade agreements could be leveraged to further advance them.” “Advanced technologies have the potential to make trade more efficient and more inclusive, but for this to happen policy action needs to keep pace with technological developments,” the Director-General added. “We hope that this publication will help advance thinking and catalyse action to unleash the potential of TradeTech to the benefit of everyone.”
WHO, WIPO, WTO launch trilateral COVID-19 technical assistance platform (WTO)
In welcoming the initiative, WTO Director-General Okonjo-Iweala said the Platform “takes our trilateral collaboration to the next level: a one-stop shop for members to seek and receive support from the three organizations on all available tools including intellectual property flexibilities to improve access to COVID-19 vaccines, medicines, and related technologies.”
The new Platform for COVID-19 related technical assistance provides WTO members and accession candidates an overview of technical assistance activities offered by the three organizations. It supports members and accession candidates seeking to address their needs for COVID-19 vaccines, medicines and related technologies and facilitates requests for the provision of timely and tailored technical assistance with a view to making full use of all available options.
World Trade Head Predicts Food Riots In Poor Countries Due To Ukraine War (Seattle Medium)
Ngozi Okonjo Iweala, the head of the World Trade Organizer, is warning that skyrocketing global food prices as a result of the war in Ukraine could trigger food riots from people going hungry in poor countries. WTO Director General Okonjo-Iweala urged food-producing countries against hoarding supplies and said it was vital to avoid a repeat of the Covid pandemic, when rich countries were able to secure for themselves the bulk of vaccines. In an interview with The Guardian of the UK, the WTO director general noted the dependence of many African countries on food supplies from the Black Sea region. “I think we should be very worried. The impact on food prices and hunger this year and next could be substantial. Food and energy are the two biggest items in the consumption baskets of poor people all over the world,” Okonjo-Iweala said. “It is poor countries and poor people within poor countries that will suffer the most.”
Global impact of war in Ukraine on food, energy and finance systems (UNCTAD)
On 14 March 2022, UN Secretary-General António Guterres announced the establishment of a Global Crisis Response Group on Food, Energy and Finance (GCRG) to coordinate the global response to the widespread impacts of the war in Ukraine. The GCRG will ensure high-level political leadership to get ahead of the immense inter-connected challenges of food security, energy and financing, and put in place a coordinated global response to the ongoing crises. This brief is the result of the coordinated work of the Global Crisis Response Task Team, reporting to the Steering Committee of the GCRG. It proposes a series of immediate to longer-term recommendations to avert and respond to the triple crisis, including the need to keep markets and trade open to ensure the availability of food, agricultural inputs such as fertilizer and energy. It also calls for international financial institutions to urgently release funding for the most at-risk countries while making sure there are enough resources to build long-term resilience to such shocks.
Ukraine war could increase shocks for developing countries, UN warns (UN News)
While rich nations were able to support their pandemic recovery with record sums borrowed at ultra-low interest rates, the poorest countries spent billions servicing debt, thus preventing them from investing in sustainable development. COVID-19 pushed 77 million more people into extreme poverty in 2021, while many economies remained below pre-2019 levels, according to the Financing for Sustainable Development Report: Bridging the Finance Divide.
Furthermore, it is estimated that one in five developing countries will not see their Gross Domestic Product (GDP) return to 2019 levels by the end of next year, even before absorbing the impacts of the Ukraine conflict, which is already affecting food, energy, and finance across the globe.
UN Deputy Secretary-General Amina Mohammed described the findings as “alarming”, given that the world is at the halfway mark for financing the Sustainable Development Goals (SDGs). “There is no excuse for inaction at this defining moment of collective responsibility, to ensure hundreds of millions of people are lifted out of hunger and poverty. We must invest in access for decent and green jobs, social protection, healthcare and education leaving no one behind,” she said.
UN crisis response group calls for immediate action to avert cascading impacts of war in Ukraine (UNCTAD)
On 13 April 2022, UN Secretary-General António Guterres launched the UN Global Crisis Response Group’s first brief on the global implications of the war in Ukraine on food, energy and finance with UN Deputy Secretary-General Amina Mohammed and UNCTAD Secretary-General Rebeca Grynspan. The war in Ukraine is setting in motion a three-dimensional crisis - on food, energy and finance - that is producing alarming cascading effects to a world economy already battered by COVID-19 and climate change, according to the new findings of the Global Crisis Response Group (GCRG) published on 13 April. “We are now facing a perfect storm that threatens to devastate the economies of developing countries,” said UN Secretary-General António Guterres. “The people of Ukraine cannot bear the violence being inflicted on them. And the most vulnerable people around the globe cannot become collateral damage in yet another disaster for which they bear no responsibility.”
Oman now 100th country to ratify Maritime Labour Convention (UN News)
The ratification means more than 96 per cent of the world’s gross shipping tonnage is now covered by the Maritime Labour Convention (MLC), which also applies to most countries that supply workers for the sector.
The ILO Director-General, Guy Ryder, described the development as a milestone. He said Oman, a longstanding maritime nation, has shown the way forward for other countries in the region. “Indeed, Oman becomes the first member of the Gulf Cooperation Council to join the global efforts to ensure decent work for seafarers and fair competition for shipowners,” he added.
Combining them into one Convention makes it easier for countries to regulate and enforce consistent industry norms and standards worldwide, according to the ILO. The MLC brought together a large number of existing labour standards that no longer reflected contemporary working and living conditions, had low ratification levels, or inadequate enforcement and compliance systems.
COVID-19 assistance to developing countries lifts foreign aid in 2021 (OECD)
Foreign aid from official donors rose to an all-time high of USD 179 billion in 2021, up 4.4% in real terms from 2020 as developed countries stepped up their help for developing countries grappling with the COVID-19 crisis, according to preliminary data collected by the OECD
Development Assistance (ODA) provided by members of the OECD’s Development Assistance Committee (DAC) in 2021 included USD 6.3 billion spent on providing COVID-19 vaccines to developing countries, equivalent to 3.5% of total ODA. Excluding ODA for donated COVID-19 vaccines, ODA was up 0.6% in real terms from 2020. ODA for donated COVID-19 vaccines equated to nearly 857 million doses for developing countries. Within the USD 6.3 billion total, USD 2.3 billion (1.3% of total ODA), covered donated doses left over from domestic supplies (nearly 357 million doses), USD 3.5 billion went on doses purchased specifically for developing countries, and USD 0.5 billion went on secondary costs. All but one of the DAC’s donors followed an OECD recommendation to value 2021 donations of excess COVID-19 vaccines at USD 6.72 per dose, and to make any necessary adjustments if they paid less to ensure no overstating of ODA.
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South African chicken prices set to soar (IOL)
South Africa is facing a chicken price increase tsunami due to inflation, rising costs, supply chain disruptions and global economy risk to food security. So says the South African Association of Meat Importers and Exporters (AMIE), adding that it could be realised as soon as June this year.
The Department of Trade, Industry and Competition (DTIC) said it was monitoring prices through the Poultry Masterplan, but food price inflation was currently a global problem.
Association chief executive Paul Matthew said South Africa’s trade partners accounted for 14.9% of all chicken consumed in the country, and the (import) sector was critical in maintaining a healthy balance between availability and affordability. “The competition provided by a small import market has a material impact on keeping the price of chicken in check for consumers. “South Africa is currently only producing around 80% of the country’s overall poultry demand, and is specifically unable to meet demand in certain cuts, such as chicken wings and leg quarters. “Consequently, imports, even at such a low level, are essential and become even more critical when South Africa experiences frequent outbreaks of disease,” said Matthew.
South Africa recognises the need to strengthen trade relations with Spain - Deputy Minister Majola (the dtic)
The Deputy Minister of Trade, Industry and Competition, Mr Fikile Majola says South Africa is hoping for strengthened and deepened bilateral trade cooperation with Spain. This follows a meeting with his counterpart, Spain’s Secretary of State for Industry, Commerce and Tourism, Her Excellency, Ms Xiana Mendez. The two met at the Department of Trade, Industry and Competition (the dtic) offices in Sunnyside, Pretoria. The meeting was at the request of Spain, with the aim of discussing bilateral and Investment cooperation. The key focus areas on the agenda were localisation and industrialisation strategies in the steel, renewable energy and automotive sectors among other issues.
In 2020, Spain was South Africa’s fourth largest export destination in the European Union (EU), after Germany, Netherlands and Belgium, and fourth largest source of imports from the EU (after Germany, Italy and France). Spain is South Africa’s 20th largest export destination and 12th largest source of imports, globally. Bilateral trade between the two countries reached the highest peak in 2018, at R51.7 billion, before falling to R38.8 billion in 2019.
Raw materials imports dominate Zim’s imports – Zimstat (NewZimbabwe.com)
RAW materials dominated Zimbabwe’s import list in the first three months of 2022, a development signifying a revival of the manufacturing sector, latest data from the Zimbabwe National Statistics Agency (ZIMSTAT) show. The Zimstat’s monthly summary of external trade statistics for the period of March 2022 shows that mineral fuels and mineral oil products stood at 15,1% in January 2022, compared to 21,5% in December 2021.
the report shows that the export list is still dominated by raw minerals, semi manufactured gold (34,6%), nickel mattes including platinum group of minerals (PGMs) (14%), nickel ores and concentrates (10,7%), tobacco (21,6%), ferro-chromium (5,2%), platinum, unwrought or in powder form (2,3%) and cotton (1,6%).
“It was noted that major minerals produced in the country, such as nickel concentrates and nickel mattes, were exported in a semi processed form, while nickel ores (including PGMs) are exported in a raw form. During the month of January 2022, the country exported 3 310 kilograms of semi manufactured gold valued at US$188,3 million, compared to 4 417 kilograms valued at US$248,1 million in December 2021,” the report said.
Review of the Zimbabwe Biodiversity Economy study concluded (The Herald)
Experts have concluded a strategic review of the Zimbabwe Biodiversity Economy (ZBE) study that aims to document the country’s rich biodiversity and map out strategies to harness it for the benefit of the people and the country. The Ministry of Environment, Climate, Tourism and Hospitality Industry in collaboration with the African Wildlife Foundation (AWF) hosted a workshop recently to validate the findings and recommendations. It was agreed that comments from stakeholders must be incorporated into the ZBE Report and that a revised ZBE Study report be submitted to the Ministry of Environment, Climate, Tourism and Hospitality Industry.
“Stakeholders also agreed to mobilise additional resources for setting up the institutional framework and systems for Natural Capital Accounting, that is for actual implementation of NCA. “A phased approach on the NCA is roll out was agreed upon and initial focus will start with the accounts that are directly under the ministry of environment and other accounts related to other sectors such as mining would follow later.”
Border chaos cleared (The Herald)
BORDER authorities at Beitbridge have cleared last week’s congestion at the port of entry when South Africa had to temporarily close its side of the post and trucks experienced delays of between two and three days to access Zimbabwe and South Africa.
Commercial cargo started piling up at Sadc’s busiest inland port last Wednesday after South Africa temporarily closed its component of the border post due to a water supply challenge.
Long queues of commercial vehicles that had become common along the N1 highway in South Africa and the Beitbridge to Bulawayo Highway, were cleared over the weekend.
Kenya to import duty-free maize (Farmers Review Africa)
Kenya has announced plans to import duty-free maize following a decline in supplies from Uganda. According to the National Food and Nutrition Balance Security Report for March prepared by the Ministry of Agriculture, poor supply from the neighbouring country and delayed short rains could make it necessary for Kenya to import maize. The country may have to allow importation of four million bags of duty-free maize to bridge the deficit and check the high prices of the staple in the country in order to cushion consumers. “Poor regional imports or delayed rains may warrant the government to allow the private sector to import at least four million bags duty free maize outside the EAC and Comesa region Farmers in Uganda are hoarding their maize stock in anticipation of higher prices and we are getting less quantities from there,” reads the report.
EPRA to cut imports for marketers exporting more fuel despite shortage (Business Daily)
The Energy and Petroleum Regulatory Authority (Epra) has said they will reduce import allocations for oil marketing companies (OMCs) found to have increased their exports to regional markets in the past four weeks, subjecting Kenyans to a shortage of the commodity. The energy regulator said on Tuesday in a statement that their analysis of the daily petroleum loadings for the past four weeks shows that some oil marketers gave priority to export while the local market faced a shortage. According to Epra, the oil marketers who increased their exports in the period under review will be allocated lower capacity for the next three import cycles.
“EPRA hereby recommends that in the allocation of capacity for the next 3 import cycles, key consideration shout be given to the following: Reduction of capacity share for all OMCs who increased their transit volumes over and above their normal quota during the supply crisis period,’ EPRA said in a statement.
The oil majors have also been cautious to increase supply, uncertain about whether the State would compensate them for fuel not used to calculate the monthly price adjustments, which takes effect on April 15 and will stay in place for one month. 28 duplicates removed
Uganda says withdrawal from ICO will benefit coffee farmers, exporters (The East African)
Uganda’s coffee sector is shrouded in uncertainty and mistrust a month after the government withdrew from the International Coffee Organisation (ICO). The matter has been confounded by the entry of a new processing firm, which the government has given a number of subsidies, including priority access to the country’s top quality coffee beans. However, the Uganda Coffee Development Authority (UCDA) insists the withdrawal from ICO is good for farmers and exporters, and that the country is willing to rejoin organisation if its grievances are addressed. Uganda said it withdrew because of unreasonable articles in a new two-year draft agreement. The country says that it needs unconditional market access that allows for export of value added coffee, which carries a premium price, instead of beans as currently provided for by the agreement. Uganda also wants ICO to brand its coffee as Ugandan on the international market, especially robusta, so that it can attract premium prices and increase quotas exported to different markets.
UCDA managing director Emmanuel Iyamulemye told The EastAfrican that the withdrawal has no impact on exports or production.
Tax experts poke holes into Kenya’s budget (The East African)
Kenya’s budget for the next financial year, which was tabled in parliament on Thursday, has no allocation that will address the most pressing issues to Kenyans in the short-term, auditors have warned. Experts from audit and tax advisory firm KPMG said on Friday that although the budget heavily favours pro-poor sectors like education and healthcare, it did not pay attention to any measures that could solve current problems like the high cost of living and unemployment.
Kenya’s Budget proposes to raise debt ceiling to fund recovery (The East African)
Kenya’s Cabinet Secretary for the National Treasury Ukur Yatani tabled a Ksh3.3 trillion ($28.69 billion) spending plan for the 2022/2023 fiscal year with a focus on accelerating growth of an economy destroyed by Covid-19. The plan also seeks to ensure implementation of the Jubilee government’s legacy projects in agriculture, manufacturing, housing and health sectors. The budget, the last under President Uhuru Kenyatta’s administration, has been crafted with a view to improving the livelihoods of Kenyans weighed down by a high cost of living and create additional employment opportunities in an economy that lost over 1.7 million jobs to the pandemic in 2020. The ambitious spending plan that focuses on the enhancement of the Economic Stimulus Programme and implementation of the infrastructure projects under the ‘Big Four’ agenda calls for increased funding, with Yatani targeting Ksh50.4 billion ($438.26 million) in additional tax revenues and Ksh862.5 billion ($7.5 billion) in new borrowing during 2022/23.
Kenya Expresses Keenness to Work with Ethiopia in Blue Economy (Walta Innovation center)
Kenya is keen to work with Ethiopia to sustainably utilize the potential of the blue economy to expedite the national development of the two countries, the Kenyan Blue Economy Sector coordinator Dr. Francis O. Owino said. The blue economy is the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ocean ecosystem, according to the World Bank. Studies indicate that Africa is rich in oceans and seas resources that can be utilized to accelerate the economies of the continent. In this regard, Kenya is one of the eastern African countries that have better experiences in utilizing the sector, particularly for tourism.
Uganda import rule boosts Kenya car dealers (The Citizen)
Uganda has tightened import conditions for vehicles aged over nine years, a move that is expected to disrupt the automobile black market in Kenya. It will, however, translate to improved fortunes for local dealerships long inconvenienced by smuggled units from the neighbouring country. In a new directive by the Uganda Revenue Authority (URA), imports of vehicles older than nine years will from July 1, 2022, be cleared under the East Africa Community’s Single Customs Territory (SCT), which allows members of the bloc to jointly collect customs taxes.
Science, Technology and Innovation Policy Review of Zambia (UNCTAD)
The achievement of Zambia’s Vision 2030 will depend on spurring innovation in firms and industries, developing financial support for science, technology and innovation (STI) activities, and strengthening the education system. To effectively harness STI for development, Zambia will need to strengthen the implementation of STI policies and boost its STI capabilities. The key challenge will be to strengthen policy coordination and political visibility for STI, with particular emphasis on the innovation element of the science-technology-innovation triad. The COVID-19 pandemic has weakened Zambia’s capacity to respond to the pressing challenges in STI and in achieving the Sustainable Development Goals (SDGs) more generally. Recovery strategies will need to allocate resources and policy attention to nurturing and strengthening the actors in the national innovation system and enabling their interactions.
NEPZA Vows to Tackle Traffic Gridlock in Lekki Free Zone (This Day)
The Managing Director/Chief Executive, Nigeria Export Processing Zones Authority (NEPZA), Prof Adesoji Adesugba, has said plans have been concluded to address the emerging traffic gridlock arising from the operations of Pinnacle Oil and Gas Free Zone Enterprises (FZE) registered in Lekki Free Zone. The assurance came against the backdrop of concerns raised by the Nigeria Economic Zones Association (NEZA) over the increase in the movement of oil tankers in the Lekki axis after Pinnacle Oil commenced operations.
The association’s Executive Secretary, Mr. Toyin Elegbede, had expressed frustration over gridlock as efforts so far made by the association to get both Lekki Free Zone Development Company and the oil company to resolve the emerging traffic crisis had not yielded any results. He said, “This has led to scores of tankers parking on the road, effectively converting it into a truck park thereby affecting flow of traffic and throwing all stakeholders in the axis in a deep state of distress. The current shortage of fuel has exacerbated the issue as it has hampered the operations of other businesses operating from the axis. “This situation, if not tackled early enough, will render the whole axis not conducive for businesses, and this will negatively affect the country’s drive for economic development through the Free Trade Zone scheme. Moreover, it poses significant security and safety threats to the residents in and around these parked tankers.”
Customs reduces import duty for used and new vehicles to 20% (Nairametrics)
The Nigerian Customs Service has officially released a circular announcing the reduction of import duties on both used and new vehicles. In a statement by, Timi Bomodi, Customs National Spokesman, the service said the new duty rate for both used and new vehicles is now 20% as against the 35% usually paid. The statement noted that implementation will take effect immediately. The service revealed that on April 1, 2022, they migrated from the old version of the ECOWAS Common External Tariff (2017-2021) to the new version (2022-2026).
The statement noted that the reduction in import duties on new vehicles was as a result of a directive from the Federal Ministry of Finance
“The nation has adopted all tariff lines with few adjustments in the extant CET. As allowed for in Annex II of the 2022-2026 CET edition, and in line with the Finance Act and the National Automotive policy, NCS has retained a duty rate of 20% for used vehicles as was transmitted by ECOWAS with a NAC levy of 15%.
Nigeria generates N29.95 billion from electricity export in 12 months (Nairametrics)
Nigeria generated a sum of $72 million from electricity export in 2021, a naira equivalent of N29.95 billion, using the official exchange rate of N416/$1. This is according to data from the Central Bank of Nigeria. The amount generated in the review year represents a 14.5% decline compared to $84.26 million recorded in the previous year and 49.4% drop as opposed to the $142.3 million received as payment in 2019. In the past five years, Nigeria earned a sum of $543.11 million from electricity export to neighbouring countries, such as Niger, Benin, and Togo Republic. Nigeria continues to export power to neighbouring countries despite continuous power outages in the country as a result of recurrent grid collapses. It is worth noting that Nigeria’s electricity export in 2021 only accounted for 0.16% of the total $45.92 billion export earnings in the period under review. At $72 million, Nigeria recorded its lowest inflow from electricity export since 2010 (11 years) in the review year.
Nigeria and dwindling investment inflows (Businessday)
Most discerning Nigerians were not surprised when the 2021 capital importation report of the National Bureau of Statistics (NBS) was released recently. The report indicated that up to 24 Nigerian states did not attract foreign investments in 2021. It should be noted that it was not only in 2021 that some states failed to attract investments. The fast disappearance of investments correlate with the rising poverty and insecurity in the land.
In 2019, Nigeria attracted $23.99 billion worth of investments. 99.5 percent of the investments which translated into $23.88 billion went into Lagos, Nigeria’s commercial centre, and Abuja, the Federal Capital Territory (FCT). Fifteen states attracted just $108.91 million while 13 states did not attract a dime as investment. This is something of a perverse wonder.
In 2020, capital importation nosedived by 59.7 percent to $9.66 billion, partly due to the effect of COVID-19 lockdowns across the world. Out of the total capital importation, $9.55 billion, representing 98.9 percent were domiciled in Lagos and Abuja. Investors did not find 26 states interesting as they did not attract any amount in the form of capital importation.
In 2021, capital importation further declined by 30.6 percent to $6.7 billion. The bulk of the investments which amounted to 86.9 percent, or $5.82 billion came to Lagos State. Abuja only attracted $833.4 million or 12.5 percent of the total capital importation in 2021.
Morocco-US meeting explores joint business opportunities (The North Africa Post)
The huge business opportunities offered in Morocco thanks to the Free Trade Agreement (FTA) sealed with the United States and the African Continental Free Trade Area (CFTA) were at the center of talks held lately between Pdt of Moroccan Association of Exporters Hassan Sentissi El Idrissi and U.S. Consul General to Casablanca Lawrence M. Randolph. During the meeting, Mr. Sentissi said Morocco looks forward to benefiting from U.S. technology and know-how particularly in seawater desalination to meet the water needs of several regions in the Kingdom. He also called for the setting up a joint shipping company to increase further trade exchanges between the two countries and take advantage of opportunities offered by the FTA.
African trade news
The African Continental Free Trade Area (AfCFTA) will boost intra-African trade by around 40%, with substantial benefits to the transport sectors, according to the latest estimates by the Economic Commission for Africa (ECA). If fully implemented AfCFTA is therefore expected to significantly increase traffic flows on all transport modes: Road, Rail, Maritime, and Air. It will also increase transport equipment needs significantly for all modes of transport
“The price watch report has not only looked at the headline of inflation figures but also at the contributing factors to these inflation figures that will inform the policy elements to contain inflation on the continent,” said Vera Songwe, the United Nations Under-Secretary-General and ECA’s Executive Secretary. The transport sector she said is important for implementing AfCFTA but is affected by inflationary pressures that are compounded by the ongoing Ukraine crisis.
“In absolute terms, over 25% of intra-African trade gains in services would go to transport alone; and nearly 40% of the increase in Africa’s services production would be in transport,” said Robert Lisinge, Chief, Energy Infrastructure and Services Section in the Private Sector Development and Finance Division of the Commission
Trade logistics and infrastructure key to unlock Africa’s trade potential (UNECA)
Transport in Africa takes much longer and is more expensive than other parts of the world. Improved trade logistics and infrastructure will unlock Africa’s trade potential, says transport and logistics experts. Factors such as landlockedness, requiring modal changes and several transit countries add to the assessment of time and costs for different potential target markets The experts from across Africa, Europe, and the USA, in the fields of transportation, infrastructure, logistics, trade, and economic development, met virtually to validate the logistics hypotheses for member countries of the Economic Community of Central African States (ECCAS) in the Decision Support Model (DSM), a model which identifies new export opportunities on 30 March.
Discussions focused on infrastructure and logistical routes in Central Africa, data initiatives, as well as the need for new strategic thinking in formulating infrastructure investment plans for the sub region.
Joint Approach to Underpin Regional Industrialization (COMESA)
Industry experts from COMESA region are meeting this week to consider a concept paper on strengthening industrial integration in the region. This initiative aims at attaining comprehensive industrial integration taking into account continental programmes such as the African Continental Free Trade Area (AfCFTA) and ‘Made in Africa’ initiative by the government of Egypt. The concept is expected to provide a roadmap for the implementation of the COMESA Industrial Strategy and its attendant Action Plan, which Member States undertook to integrate into their National Industrial Development Plans for implementation. In a meeting of the Ministers of industry conducted in May last year, countries were required to allocate budgets to implement their industrial development plans in synergy with regional activities and in line with the Third Industrial Decade for Africa (IDDAIII).
However, the level of implementation of the Action Plan both at regional level has been minimal and varied at national level. The concept paper is therefore an attempt to strengthen the efforts of the Egypt initiative and COMESA Members States focusing on activities that will contribute effectively to implementing the COMESA Industrial Strategy and raising the economic growth rates of the COMESA region
The Democratic Republic of the Congo (DRC) has formally joined the East African Community (EAC) after the signing of the Treaty of the Accession of the DRC into the EAC in Nairobi, Kenya. DRC now has up to 29th September, 2022 to undertake internal and constitutional processes to ratify the Treaty and deposit the instruments of ratification with the Secretary General.
President Kenyatta said that the region has already began realising the promise of the EAC including the free movement of people, goods and services across the Community that has boosted trade and strengthened people-to-people ties thereby enabling East Africans to harness the comparative strength of each member state for the benefit of all and to confront and solve problems together.
“The accession of DRC as a member state of EAC will even more elevate these gains and strengthen our economic muscles and competitiveness in the continent and globally,” said the Chairperson of the Summit.
East Africa Chamber of Commerce Launches Global Hub Business Network (EIN News)
The EACC began in 2005 with a group of American investors and business leaders and has served the East African Community (EAC) over the past seventeen years successfully providing international trade and investment opportunities through our annual conference attended by Ambassadors, Parliament Members, Governors and prominent business leaders from the EAC and around the world. By 2013 annual trade and investment conferences began featuring global industry leaders highlighting sustainable solutions across major industries such as mobile finance, agriculture, manufacturing, telecommunications, energy, education, healthcare, women’s leadership, real estate and clean water. Also featured were business-to-business and business-to-government networking, deal flow, investments, trade and mentoring. It is an understatement to view the organization as a “chamber of commerce” as so much more value is conveyed throughout the international community. The EACC continues to host investment and trade conferences in North Texas while introducing virtual attendance models for those who are unable to travel. 2022 marks a major milestone as the EACC has partnered with HungryGenius® Holdings, LLC to launch the East Africa Business Network (EABN).
EAC economies exposed to Russia-Ukraine war spill – UN (The Star, Kenya)
The East African economies, struggling to recover from the Covid-19 hit, face another crisis arising from the war in Ukraine, the UN has cautioned. The United Nations-Economic Commission for Africa (ECA) estimates that the Covid pandemic led to the contraction of Africa’s real GDP by three percent (3%) in 2020 and Africa’s debt-to-GDP ratio increased by 10 to 15 percentage points by 2021. This is from about 60 per cent in 2019 as governments borrowed to mitigate the socio-economic impact of the pandemic. Over the pandemic period, Kenya borrowed about Sh1.06 trillion during to mitigate its effects and budgetary support, pushing the country’s public debt to Sh7.34 trillion. It has since grown to Sh8.2 trillion, Central Bank of Kenya data shows. “Africa’s recovery has been hindered by higher inflation, tighter global financial conditions, rising interest rates and the Ukraine crisis further compound the situation,” said Mama Keita, Director ECA Sub-Regional Office for Eastern Africa, in a statement yesterday. This was after the ECA-East African Business Council meeting on financing recovery from Covid-19 and status of the African Continental Free Trade Area (AfCFTA) negotiations and implications to the private sector in the EAC.
DR Congo brings unmatched resources, untapped potential to the EAC table (The East African)
The East African Community (EAC) has finally granted Democratic Republic of Congo’s (DRC’s) June 2019 request for admission, at the Extraordinary Heads of State Summit. Reception to DRC’s entry into EAC has divided opinion in recent times. For regional integration supporters in general, and DRC in particular, it is a long overdue but welcome move that holds the promise of opening up the bloc to more integrated development. For integration opponents, the admission of yet another ‘problem child’ into the Community (in addition to South Sudan that joined EAC in April 2016) is premature. A third group is neutral, watching how things are shaping up.
To leverage the additional resources that DRC brings to the EAC table for the accelerated socio-economic development that the bloc absolutely needs to sustain its peace and security, EAC member states are best advised to embrace DRC wholeheartedly.
32nd Session of the FAO Regional Conference for Africa (FAO)
More than 50 government ministers from African member countries are taking part in the hybrid conference, as well as representatives from observer countries, the African Union, donor organizations, civil society and the private sector.
29m people face hunger as drought ravages eastern Africa (The East African)
At least 29 million people in eastern Africa are currently facing high levels of food insecurity due to prolonged drought as rains are projected to fail for a fourth consecutive season in the region, the Inter-Governmental Authority on Development has warned. Analysis by IGAD’s Climate Prediction and Applications Centre (ICPAC) shows that the first month of the March to May (MAM) 2022 season was dry, projecting that the entire period will generally be dry, with high temperatures and less than normal rainfall. The prolonged drought, added to conflicts in the region and in eastern Europe, and the impact of Covid-19, has led to acute levels of food insecurity across the entire IGAD region, the bloc said in a statement on Monday.
How the EU spent billions to halt migration from Africa (DW)
Faced with hundreds of thousands of refugees arriving in EU countries in 2015, policymakers from member states felt the pressure to show a quick reaction. Convening with the leaders of several African countries in the Maltese capital, Valletta, they decided to fill a pot of money. This money was not dedicated to helping integrate the thousands of people who had arrived in the European Union. Instead, the so-called EU Emergency Trust Fund for Africa (EUTF) was supposed to “address the root causes of irregular migration” so that fewer Africans might try to make their — often dangerous — way to Europe.
Was this goal reached six years and €5 billion later?
Global economy news
Russia-Ukraine conflict puts fragile global trade recovery at risk (WTO)
The organization now expects merchandise trade volume growth of 3.0% in 2022—down from its previous forecast of 4.7%—and 3.4% in 2023, but these estimates are less certain than usual due to the fluid nature of the conflict
The most immediate economic impact of the crisis has been a sharp rise in commodity prices. Despite their small shares in world trade and output, Russia and Ukraine are key suppliers of essential goods including food, energy, and fertilizers, supplies of which are now threatened by the war. Grain shipments through Black Sea ports have already been halted, with potentially dire consequences for food security in poor countries.
“The war in Ukraine has created immense human suffering, but it has also damaged the global economy at a critical juncture. Its impact will be felt around the world, particularly in low-income countries, where food accounts for a large fraction of household spending,” Director-General Ngozi Okonjo-Iweala said. “Smaller supplies and higher prices for food mean that the world’s poor could be forced to do without. This must not be allowed to happen. This is not the time to turn inward. In a crisis, more trade is needed to ensure stable, equitable access to necessities. Restricting trade will threaten the wellbeing of families and businesses and make more fraught the task of building a durable economic recovery from COVID‑19,” the Director-General went on to say.
The long lasting economic shock of war (IMF)
Russia’s invasion of Ukraine is an unmitigated catastrophe for global peace and particularly for peace in Europe. But the war also greatly compounds a number of preexisting adverse global economic trends, including rising inflation, extreme poverty, increasing food insecurity, deglobalization, and worsening environmental degradation. In addition, with an apparent end to the peace dividend that has long helped finance higher social expenditures, rebalancing fiscal priorities could prove quite challenging even in advanced economies
For the global economy, fuel and food shortages caused by the war are exacerbating post-pandemic inflation that had already reached multi-decade highs in most of the world. Supply chain disruptions have also been a major contributing factor to inflation, although some of the strain on supply should really be traced to the sudden surge in demand. Across advanced economies, more than half (including the United States and the euro area) had inflation rates of over 5 percent even before hostilities, so that the war made an already difficult situation worse. Prior to the conflict, Russia and Ukraine combined accounted for a quarter of global wheat exports, and Russia is a major supplier of fossil fuels, especially to Europe. Disruptions to supplies of these commodities are driving up prices.
WTO Secretariat note examines impact of conflict in Ukraine on global trade and development (WTO)
“The brunt of the suffering and destruction are being felt by the people of Ukraine themselves but the costs in terms of reduced trade and output are likely to be felt by people around the world through higher food and energy prices and reduced availability of goods exported by Russia and Ukraine,” according to the Secretariat note. “Poorer countries are at high risk from the war, since they tend to spend a larger fraction of their incomes on food compared to richer countries,” it continues. “This could impact political stability.”
Using a global economic simulation model, the Secretariat projects that the crisis could lower global GDP growth by 0.7-1.3 percentage points, bringing growth to somewhere between 3.1 per cent and 3.7 per cent for 2022. The model also projects that global trade growth this year could be cut almost in half from the 4.7 per cent the WTO forecasted last October to between 2.4 per cent and 3 per cent.
FAO Food Price Index posts significant leap in March (FAO)
World food commodity prices made a significant leap in March to reach their highest levels ever, as war in the Black Sea region spread shocks through markets for staple grains and vegetable oils, the Food and Agriculture Organization of the United Nations (FAO) reported today. The FAO Food Price Index averaged 159.3 points in March, up 12.6 percent from February when it had already reached its highest level since its inception in 1990. The Index tracks monthly changes in the international prices of a basket of commonly-traded food commodities. The latest level of the index was 33.6 percent higher than in March 2021.
A new global food crisis is building (World Bank Blog)
The war in Ukraine has triggered an alarming global surge in government controls on the export of food. It’s critical for policymakers to halt the trend, which is making a global food crisis more likely. In the space of a few weeks, the number of countries slapping on food-export restrictions jumped by 25%, bringing the total number of countries to 35. By the end of March, 53 new policy interventions affecting food trade had been imposed—of which 31 restricted exports, and nine involved curbs on wheat exports, according to the latest data. History shows that such restrictions are counterproductive in the most tragic ways. A decade ago, most notably, they exacerbated the global food crisis, driving up wheat prices by a whopping 30%.
Food crises are bad for everyone, but they are devastating for the poorest and most vulnerable people. This is because of two reasons. First, the world’s poorest countries tend to be food-importing countries. Second, food accounts for at least half of total expenditures of households in low-income countries. In 2008, the food crisis brought on a significant increase in malnutrition, particularly in children. Many households pawned family valuables to buy food. Some studies showed school drop-out rates of as much as 50% among children from the poorest households. Social and economic damage of that kind cannot be easily reversed.
In pursuit of an inclusive energy transition (UNCTAD)
For over two centuries fossil fuels have literally fueled the world’s economic expansion. But this prosperity has left a trail of CO2 gases in its wake and global warming now threatens to derail the very prosperity achieved so far. This is our prosperity paradox: the more we grow, the more CO2 we emit and the more we compromise our future. Decoupling economic growth from CO2 emissions is a top priority for many but efforts and pledges to do so have fallen short. In the last six decades, while global GDP per capita has nearly tripled, CO2 emissions have quadrupled. Not everyone has emitted equally. Developed countries account for a whopping 58.6% of emissions, developing countries contribute 40.9% and least developed countries (LDCs) only 0.5%. But the most severe economic consequences of climate change are expected in the tropics, the home of the developing world.
Working group hears updates on work related to small business (WTO)
Mexico informed the group that the Trade4MSME platform is now available in French and Spanish, and that outreach was made to international and regional organisations to invite them to become partners to help make the platform as useful as possible for MSMEs and policy makers. Trade4MSME was launched in December 2021 to help small companies find trade-related information that improves their ability to trade internationally.
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Zimbabwe: African Development Bank notes progress on arrears clearance (AfDB)
African Development Bank officials and representatives of the Zimbabwe government met on Wednesday to discuss the nation’s arrears clearance and ongoing partnership between the southern African nation and the development institution. They noted progress in Zimbabwe’s reform agenda.
The Zimbabwe government has lowered taxes on fuel, made changes to its land policy and is implementing a range of social protection measures while tackling the Covid-19 pandemic, Ncube said. Two projects in particular are going well. The first, is an agriculture-based programme which has given relief to two million households and the second is a cash transfer programme, targeting children from poor families. Other measures included subsidized medical care for elderly people and other vulnerable population groups, and a grain distribution programme for populations in drought-hit areas.
Common Agro-Industrial Park for Zambia-Zimbabwe is on Course (COMESA)
The governments of Zambia and Zimbabwe with support from COMESA Secretariat, the United Nations Economic for Africa (UNECA) and the African Development Bank (AfDB) are working on modalities to establish a Joint Agro Industrial Park. The proposed project is expected to increase the availability of industrial goods and services for the bilateral market and expand intra- regional trade in manufacturing. It will help develop industrialists that would acquire ownership and management of the industries, develop appropriate skills and knowledge in industries, strengthen collaboration and bolster networking among policy makers, regulators, industry and academia.
How tech helped firms blunt sting of Covid-19 disruptions (Business Daily)
When Covid-19 hit Kenya in March 2020, it forced almost every economic sector to quickly automate operations as organisations sought to weather the storms brought by the unprecedented level of disruptions witnessed during the pandemic. Even corporates and small and medium-sized businesses (SMEs) that had gone digital realised that the depth and scope of business disruptions were such that their existing Enterprise Resource Planning (ERP) software needed to be upgraded or entirely replaced. As the necessity for employees to work from home rose, software vendors bolstered their cloud storage and capacity, while companies increased the number of software users.
Summit to assess progress in Kenya’s ICT landscape (Business Daily)
Stakeholders in the information technology (IT) industry are set to review progress in the sector, including digital skills, infrastructure and regulatory environment, to develop a plan for economic development with tech-enabled services. The Connected Kenya Summit 2022 is also expected to chart the way for increased adoption of emerging technologies such as Blockchain, the Internet of things, Big Data and Artificial Intelligence in service delivery.
“Under the theme ‘Accelerating Digital Transformation”, a great deal of earnest discussion that will go under the summit will shape how the industry will provide viable ICT solutions to challenges facing the country especially after the Covid-19 pandemic negatively impacted the different sectors of the economy,” said ICT Authority.
Inside Uhuru’s last Sh3.3trn budget (Business Daily)
Treasury Cabinet Secretary Ukur Yatani on Thursday read the Sh3.31 trillion budget for the financial year starting July, two months earlier than traditional time, paving the way for lawmakers to approve expenditure before their term ends ahead of the August 9 general elections. The Treasury secretary informed the lawmakers that Kenya had received the green light from East Africa Community (EAC) partner states to read the budget ahead of the August elections. Mr Yatani said the Jubilee administration has refocused spending to sustain economic recovery from the Covid-19 pandemic and support social welfare programmes meant to benefit low-income and poor Kenyans.
Local manufacturing ”In order to promote local manufacturing of pharmaceutical products, I propose to introduce VAT exemption on inputs used in the manufacture of medical ventilators and breathing appliances.”
Kenya Pipeline ventures into internet business, launches fibre optic cable (The East African)
The Kenya Pipeline Company (KPC) on Thursday launched its fibre optic cable that will run from the Mombasa port through Nairobi to Kisumu and Eldoret in western Kenya. The state corporation is conventionally mandated to transport petroleum products from the Mombasa port to the hinterlands in Kenya, Uganda, Rwanda, Burundi, South Sudan, Eastern DRC, and parts of Northern Tanzania. But it is venturing into a new product line as it seeks to create a new revenue stream and improve the country’s internet connectivity.
KPC’s Managing Director, Dr Macharia Irungu, said, “We purpose to improve internal communication infrastructure for the country; diversify into the data communication sector to create a new revenue stream; and utilise technology as a business driver for both ourselves and our customers.”
“In launching our fibre optic cable, we are re-affirming our unequivocal commitment to revolutionising the delivery of data across the country,” Dr Irungu added.
Tanzania hosts IMF-led talks on cryptocurrencies (The East African)
Tanzania’s top financial sector officials on Tuesday called for a clearer global consensus on Central Bank Digital Currencies (CBDCs) and crypto assets as the country continues to contemplate the direction to take on the rapidly evolving concepts. Finance and Planning Minister Mwigulu Nchemba told a regional conference hosted by the Bank of Tanzania and International Monetary Fund that both topics needed more “thorough discussions” before the country could make commitments, a view that was echoed by Bank of Tanzania governor Prof Florens Luoga. The virtual convention, which continued on Wednesday, was called specifically for Anglophone countries in Sub-Saharan Africa to gain more insight on issues such as financial inclusion and integrity, digital and cybersecurity risks, legal issues and interoperability in relation to CBDCs and cryptocurrency dealings.
‘Tanzania’s export of raw hides, skins has increased’ (IPP Media)
Deputy Minister for Livestock and Fisheries Abdallah Ulega said the government has taken measures to encourage value addition and attract local and foreign investors in the leather industry. The deputy minister said decisions to impose the 80 per cent export levy on n raw hides and skins and 10 per cent on wet blue exports was meant to encourage value addition by local industries.
“Countries within the East African Community (EAC) agreed to impose the export levies to protect local firms and enhance productivity in the leather industry. The decision was meant to ensure reliable availability of raw materials to local factories manufacturing leather products,” said Ulega. The 80 per cent export levy on the products is equivalent to US $ 0.52 per kilogramme, stated Ulega, adding that there are no levies charged on finished leather exported to various countries.
Improved infrastructure will boost cross-border trade – WAACBT (The Sun Nigeria)
As African countries push for implementation of African Continental Free Trade Area (AfCFTA) agreement, the President of West Africa Association for Cross Border Trade, Salami Alasoadua, has urged governments of the West African sub region to step up their infrastructure to boost trade in the region.
Alasoadua, who made the call in Lagos, noted that ‘Nigeria, Ghana, Togo and Benin Republic’ needed to develop infrastructure along the borders to improve trade.
“We need to develop infrastructure along our borders. We need lorry parks to ease movement at the borders. We need to involve the broader communities in terms of policy. By doing this, we can also resolve the issue of lack of information.”
NEPC seeks formalisation of export services to boost Nigeria’s economy (Businessday)
The Nigerian Export Promotion Council (NEPC), Nigerians lead agency in the promotion of the non-oil export sector of the economy, has advised professionals, who render services abroad or to foreign nationals in the country to formalise their services to bring in foreign exchange and improve the country’s economy. Arnold Jackson, regional head, South-East region of NEPC, gave this advice Wednesday, while delivering a paper titled “Export of Nigerian services, at one-day sensitisation workshop on “Export of Services”, organised by the Aba Smart Office of the Council. He explained that the services sector is the easiest way to diversify the economy.
Business services in Nigeria include professional services in healthcare, information communication technology (ICT), transportation, financial services, entertainment and education, which it has comparative advantage.
Stimulating Creative Industry for Economic Sustainability (This Day)
Apart from preserving the culture and values of the society, the creative industry is adjudged to be a catalyst for the economic transformation of any country. In Nigeria, however, although the fame of the local movie industry, Nollywood transcends the boundaries, the full potential of the sector is believed to be largely untapped as the industry’s contribution to growth is rather negligible.
But as the federal government intensifies its drive towards economic diversification from oil, critical sectors including the creative industry, have been targeted, especially through the interventions by the Central Bank of Nigeria (CBN) in a conscious effort to reposition the sector.
Malawi: Country strategy sparks transformation in agriculture (AfDB)
Malawi has achieved significant progress in its agricultural sector, helped by a country strategy drafted by the African Development Bank. The 2018-2022 strategy also supported progress in the transport sector, according to the mid-term review approved on 4 April by the African Development Bank Group’s Boards of Executive Directors in Abidjan. The Country Strategy Paper, approved by the African Development Bank Group’s Boards of Executive Directors in June 2018, is based on two pillars: investing in infrastructure development through energy and transport, and investing in economic transformation by added value in agriculture and developing water infrastructure.
In terms of economic diversification and improving the business climate, by 2020 the strategy had resulted in training for 1,000 small farmers and provided agricultural extension services. It has also allowed over 2.28 million transactions to be processed through a digital payment platform and secured three VISA and Mastercard certifications.
Ethiopia says it has generated over $2.5 billion from export (Borkena)
Ethiopia’s Ministry of Trade and Regional Integration says it has generated $2.5 billion from export trade in eight months. Gebremeskel Challa, the Minister for Trade, said, as reported by state media, that the plan was to generate $2.77 billion and that 91 percent of the planned revenue is achieved from export trade. The bulk of it was generated from the export of agricultural products ( $1.75 billion). The Manufacturing sector generated $320.9 million.
Comoros Launches National Quality Policy (ITC)
The formal launch of the National Quality Policy in the Union of the Comoros is a significant milestone in the government’s overall strategy for economic and social development in the wake of the global pandemic health crisis. The National Quality Policy aims to strengthen the country’s quality infrastructure and establish a culture of higher standards both in public administration and in the private sector to ensure more inclusive and sustainable economic development in the Comoros.
The National Quality Policy is in line with the provisions of the World Trade Organization’s agreements on technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures to which the Union of the Comoros has subscribed.
The introduction of a quality standards framework has been a key aspect of the ongoing work of the UK Trade Partnerships Programme (UKTP), an aid-for-trade initiative in selected African, Caribbean and Pacific countries funded by the UK’s Foreign, Commonwealth and Development Office.
African trade news
AU Summit on Industrialization and Economic Diversification; a game-changer for Africa’s development trajectory (African Union)
Preparations for the African Union Summit on Industrialization and Economic Diversification have officially kicked off. Touted as a highly anticipated timely gathering, the Summit is expected to offer various opportunities to member states, regional organizations, the private sector including Medium and Small Scale enterprises and start-ups, and the development partners, to unlock the continent’s potential to industrialize, particularly as the COVID-19 pandemic recovery action plans are being implemented and with the latest concerns on the impact of the Ukraine crisis on the African continent. The Summit’s outcomes are expected to be action-oriented, to accelerate industrialization and Economic Diversification in Africa. Niger, the host country of the Summit to be convened during the Africa Industrialization Week from the 20 - 25 November 2022, will be among the beneficiaries of the Summit deliverables as plans are underway, to establish a Special Economic Zone in the country.
The African Union Summit on Industrialization and Economic Diversification makes great recognition of the fact that sustainable success on the Africa-Industrialisation front will only be achieved with deliberate efforts to integrate and systemically address Africa’s underlying development features, such as the micro-small-medium enterprises and informal economy, the urban-rural transition, socio-economic diversity across the 55 AU member states, as well as linkages between education-skills development and industry. Cross-cutting issues such as gender, climate change, energy security, youthful population and growing unemployment, will facilitate the evolution of a sustainable and inclusive industrialisation pathway for the continent.
The AFRICA CEO FORUM 2022 Edition will be held in Abidjan, Côte d’Ivoire from June 13-14 (IFC)
The 2022 edition of the AFRICA CEO FORUM, the largest annual event dedicated to private sector development in Africa, will be held on June 13-14, 2022, in Abidjan, Côte d’Ivoire. At a time when the world is recovering and rebuilding from COVID-19, and 10 years after its first edition, the event will focus on proposing new routes for African growth. Vaccine production, disruption of supply chains, digitalization of economies, energy transition and the health crisis brought on by COVID-19 have accelerated the transformation of economies towards new models.
Nigeria, Ghana, other countries in Sub-Saharan Africa could experience worsened food insecurity as food inflation soars - IMF (Business Insider)
Food items make up around 40% of the consumption basket in sub-Saharan Africa. This explains why high food prices directly impact inflation rates in the region. Using available data obtained from some countries in SSA, the IMF found that between 2019 and late 2021, there was a significant increase in inflation linked directly to higher food prices. “Food inflation increased throughout 2019, on average, across 20 countries in the region where monthly food price data are available. After remaining stable around 9 percent (year over year) since the beginning of the pandemic, food inflation started to rise again from April this year to some 11 percent in October. The chart below shows how food inflation is outpacing and contributing to the pick-up in overall consumer price inflation in sub-Saharan Africa, which rose to about 9 percent in October, up from around 6 percent in 2019,” said a part of the report which was seen by Business Insider Africa.
Enabling affordable and sustainable internet access in Africa (Businessday)
When the World Health Organisation declared Covid-19 a pandemic in 2020, the world’s physical economy shut down. Since brick-and-mortar spaces are hotspots for the spread of the virus, business and productivity locations, such as shops, banks, schools, and other physical spaces were closed. A Covid-19 report estimated an export loss of N2.27 trillion to Nigeria, due to closed borders, social distancing, and lockdown in destination nations and Nigeria with a resultant decline in revenue, profits, and economic value. While some companies have responded tactically during this pandemic, this must be supplemented with a strategic business focus on improving resilience in operations, absorbing uncertainty, increasing agility, and incorporating lessons into the operating model quickly. Due to a mixture of resilience, digitized operations, and preparedness, many companies had unexpected growth, especially because of the pandemic, including Amazon, Microsoft, Apple, Tencent, and Zoom in industries as varied as communications services, IT, and healthcare and consumer discretionaries. These companies identified the opportunities Covid-19 provided to their businesses and took full advantage.
Japan joins forces with ITC to boost COVID-19 vaccine production and distribution in Africa (ITC)
The Vaccine Investments and Trade Ecosystems in Africa (VITEA) project will strengthen the value chains of COVID-19 vaccines and related supplies. As a pilot project, it will focus on Nigeria. It will engage a whole range of Nigerian stakeholders from vaccine and related supplies manufacturers to research and development enterprises and business support organizations. This will strengthen the entire ecosystem of COVID-19 vaccine and vaccine component production and distribution. Beyond the immediate objective of improving the competitiveness of vaccine and related industries in the Federal Republic of Nigeria, the project will contribute in the long term to supporting the country’s economic recovery efforts by building a diversified industrial base in the aftermath of the pandemic, promoting human security through improved access to safe and effective COVID-19 vaccines, and achieving the United Nations Sustainable Development Goals.
Global economy news
Members reinvigorate Trade Facilitation Agreement monitoring following last year’s review (WTO)
Members considered, as a new standing agenda item, the timeliness of members’ TFA implementation based on the definitive dates each had respectively notified. Between 1 January and 31 December 2022, 31 members have implementation dates due for a total of 229 measures according to a report from the WTO Secretariat. Between 1 January 2022 and 31 December 2023, 47 members have 444 measures due for implementation. The most common include the establishment of a single window that allows traders to submit documents to one contact point, the publication of information on trade procedures on the Internet, measures relating to risk management, the measurement and publication of average release times for merchandise, and cooperation among border agencies.
Four key challenges facing least developed countries (UNCTAD)
About 1.1 billion people live in least developed countries (LDCs), which face daunting development challenges. The LDC group grew from an initial 25 countries in 1971 to a peak of 52 in 1991 and stands at 46 today. Only six countries have managed to graduate from the category. “The vulnerabilities of LDCs have evolved since the UN created the category five decades ago, but they continue to face major obstacles that block their sustainable development,” said Paul Akiwumi, UNCTAD’s director for Africa and least developed countries. These include soaring debt, export marginalization, energy poverty and climate vulnerability.
Restructuring debt of poorer nations requires more efficient coordination (IMF Blog)
Low-income countries face fewer debt challenges today than they did 25 years ago, thanks in particular to the Heavily Indebted Poor Countries initiative, which slashed unmanageable debt burdens across sub-Saharan Africa and other regions. But although debt ratios are lower than in the mid-1990s, debt has been creeping up for the past decade and the changing composition of creditors will make restructurings more complex.
Improvements to the Group of Twenty Common Framework for Debt Treatments—from which the 73 countries that were eligible for the G20 Debt Service Suspension Initiative (DSSI) in 2020-21 can now benefit—could clear a path through this increasing creditor complexity.
So far only a handful of countries have requested to use the common framework, which was launched in November 2020, underscoring the need for change to build confidence and encourage participation at a pivotal moment for heavily indebted low-income countries.
Visa opens Nairobi innovation hub, the first in Africa (The East African)
The Nairobi studio is the first in Africa and sixth globally, after posts in Dubai, London, Miami, San Francisco and Singapore.
Global digital payments giant Visa has opened an innovation studio in Kenya, the first in Africa, to expand its reach in the region. The studio will bring together developers, Visa’s internal and external clients, and other partners to co-create payment and commerce solutions. Opening of the hub in Kenya is a strategy to capture market as consumers switch to new payment platforms and digital wallets that could bypass the card networks or slow their revenue growth.
Senior vice president and head of Visa in Sub-Saharan Africa, Aida Diarra said: ”Sub-Saharan Africa is a fast-growing region with a tech-savvy population and as we continue to grow digital payments adoption in the region, our aspiration is to deepen our collaboration with clients and partners in developing solutions that are designed around the unique needs of Africa.”
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Local news
Supply chain bottlenecks here to stay for 2022, goods prices to rise sharply – Cargo Compass SA (Engineering News)
Global supply chain backlogs are showing no signs of easing and are likely to worsen for the rest of the year, leading to even higher prices of consumer and commercial goods in South Africa, warns Cargo Compass South Africa (SA) CEO Sebastiano Iorio. “At the start of this year we were hopeful that trade bottlenecks would ease this year, but they seem to be getting even more severe.”
Brazil, EU dump poultry in SACU - implications and lessons for Namibia (New Era)
The International Trade Administration Commission, which is the de facto trade regulator for the SACU market has concluded a preliminary investigation of dumping of poultry products into SACU. Technical advisor at the Namibian Agricultural Trade Forum (ATF) Maria Immanuel said after considering all interested parties’ submissions and comments, ITAC made a preliminary determination that the subject product originating in or imported from Brazil, Denmark, Ireland, Poland and Spain are being dumped into the SACU market, causing a material injury and a threat of material injury to the SACU poultry industry. ”As a result, ITAC requested the relevant authorities to impose provisional measures (anti-dumping measures) on imports of the subject products for a period of six months. The South African Revenue Services (SARS) has gazetted the measure on 4 March 2022, to be implemented with retrospective effect from 17 December 2021 up to and including 14 June 2022,” stated Immanuel.
Cross-border traders adopt plastic money (The Herald)
Zimbabwean cross-border traders are cutting right back on cash after years of being a target for robbers switching to plastic money. They hope with the new switch, they will cease being a target for robbers. Criminals have been targeting foreign-registered vehicles and cross-border buses along major highways in South Africa and some major highways in Zimbabwe.
The Zimbabwe Cross-Border Traders’ Association has struck a deal with FBC Bank to issue the prepaid MasterCard to thousands of its members. The association’s president Mr Killer Zivhu led scores of cross-border traders to South Africa over the weekend on a test run of the FBC MasterCard. “This is a major milestone in the history of cross-border traders and the deal we have struck will help us trade freely without any worry of losing our money,” said Mr Zivhu. “Thousands of people depend on cross-border trading and this move with help secure their businesses.”
How regional maritime single window can boost Kenya’s port attractiveness (Business Daily)
It is during seasons of strife that the world is restructured. Since the start of the Covid-19 pandemic two years ago, a revolution has been happening in the shipping industry, whose supply chains globalisation depends on moving pretty much everything to all corners of the globe. However, climate change, the pandemic and now the war in Ukraine have dealt a major blow to the current supply chains structure. Just recently, Shanghai City in China was ordered into lockdown after a spike in Covid-19 cases. As home to the world’s busiest port, which moves approximately 250,000 containers in a day, speculation amongst shippers is high. It will likely tip the container spot rates leading to additional freight costs. The burden is adversely felt by net importing countries that depend on Shanghai for everything from electronics to clothes. How then can countries especially in Africa shield themselves from the increasing shocks in global supply chains?
Cargo transporters feel heat of nationwide fuel shortage (Business Daily)
The logistics sector is feeling the heat of a fuel shortage that has hit different parts of the country even as transporters who are stuck with cargo at the Port of Mombasa ask authorities to waive storage charges. Transporters argue that some of their trucks cannot move cargo from the port as they do not have enough fuel to ship the consignments from the facility to the final destination. The government and oil marketers have been on a back-and-forth over the arrears owed to oil dealers in the last couple of weeks, a move that has paralysed the transport sector in the country, especially in western Kenya where the deficit was acute. The shortage has impacted not only on transport but also farming activities as farmers grapple with difficulties in getting diesel, which has coincided with the peak of planting season.
State recommends milk imports amid shortages (Business Daily)
The Agriculture ministry has proposed a one-month window for the importation of milk to address the current shortage that has seen the price of the commodity rise significantly. The ministry says there is reduced milk productivity as a result of poor rains and it wants processors to be allowed to import UHT and powder milk to ease the situation. The National Food and Nutrition Security Report indicates that milk production in Kenya has been below average while prices have been increasing. “Short term response (is) requested to increase imports of fast-moving milk products over a period of one month for processing only by processors,” says the ministry in a report seen by the Business Daily.
US says IMF stopped Kenya economic meltdown (Business Daily)
The US government has revealed that emergency loans from the International Monetary Fund (IMF) cushioned Kenya’s economy from near collapse amid protests from Kenyans over the mounting public debt.US Treasury Secretary Janet Yellen asked the US Congress to continue providing support to the IMF, citing its involvement in Kenya in the wake of Covid-19 economic hardships, which triggered layoffs, pay cuts and business closures. Ms Yelllen made the comments last Friday while pushing Congress to approve a Sh503 billion for international plans under institutions like the IMF.
“The pandemic hit Kenya’s economy hard, worsening preexisting financial vulnerabilities and debt risks. These efforts have helped the Kenyan economy rebound from the Covid-19 shock and stage an economic recovery, with growth expected at nearly six percent in both 2021 and 2022.”
Kenya’s economy dipped by 0.3 percent in 2020, hit by the economic fallout of Covid-19, compared to 5.0 percent growth in 2019. The pandemic hit Kenya’s revenues and limited access to commercial loan markets, forcing the country to turn to the World Bank and the IMF for direct budgetary financing.
Rwanda, Zambia sign seven trade and cooperation deals (The East African)
Rwanda and Zambia on Monday signed seven cooperation agreements that will boost trade between them. The deals signed cover areas of investment, trade, agriculture, and migration.
Zambia is among Rwanda’s major sources of raw sugar, corn, and soya bean imports. Trade value between both countries reached $20 million in 2020. A statement by Zambia’s presidential spokesperson indicated that the country plans to leverage cooperation with Rwanda to rebuild its economy, create jobs, and put food on the table.
“Zambia is also using this opportunity to learn and share best practices in areas of information and communication technology as well as the areas of easing the cost of doing business,” the statement said. The country also plans to learn from Rwanda how to position its economic sector into key economic pillars.
How will AfCFTA boost Ghana’s free zone exports? (Oxford Business Group)
With a focus on driving broader economic development through both manufacturing and the establishment of special economic zones (SEZs), Ghana is looking to capitalise on the benefits associated with the African Continental Free Trade Area (AfCFTA). Ghana has long sought to increase its industrial capacity as a way of creating jobs and stimulating GDP growth. Key to this have been government efforts to improve the country’s industrial infrastructure, in part by establishing programmes designed to expand industrial parks and SEZs. While SEZs and industrial zones have formed part of Ghana’s strategic economic plans for some decades, the country has recently reaffirmed its focus on them as a way to stimulate GDP growth following two years of the coronavirus pandemic.
Nigeria wants landlocked West African countries linked to railway (Daily Trust)
The federal government is to champion the extension of rail lines from land-locked countries to coastal states of Benin Republic, Togo, Ghana and other African countries as part of efforts to sufficiently benefit from the opportunities presented by the African Continental Free Trade Area (AfCFTA). The Minister of State for Transportation, Sen. Gbemisola Ruqayyah Saraki said the strategy would facilitate movement of cargoes, enhance import and export of goods to promote trade and create employment opportunities.
“Charting out strategies to implement the low hanging fruits that will propel the sector to achieve the various deliverables in the AfCFTA implementation plan is key”, she said.
Abidjan-Lagos Highway Could Be West Africa’s Game Changer (Business Post Nigeria)
The Governor of Bayelsa State, Mr Douye Diri, has stressed the need for proper financial reporting as a form of guidance to the government in formulating policies that will be beneficial to the citizens.
The Governor said the burden was on the shoulders of the accountants, to discharge the responsibility to ensure that government and other institutions have correct and proper reporting in place.
He further said, “Without positive and accurate reporting, governance would become a challenge. Countries, societies, and even families have made decisions that are very colossal as a result of wrong reporting in terms of the available resources and how those resources can be applied.
Nigeria to become Africa’s fertilizer powerhouse — Buhari (Premium Times)
President Muhammadu Buhari has said developments in the Nigerian fertilizer value chain is moving the country to becoming a regional and global fertilizer powerhouse. He attributed Nigeria’s rising prominence to the implementation of the “right policies” by his administration, which has given birth to over seventy active blending plants in the country. In a statement by Femi Adesina, special adviser to the president on media and publicity, the president said Nigeria is definitely a “global player” in the Urea space. ‘‘With our over seventy blending plants operating, Nigeria is on its way to becoming Africa’s fertiliser powerhouse. And with our mega Urea production facilities, Nigeria is definitely a global player in the Urea space,’’ the president was quoted to have said at an audience with the Executive Committee of Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN) on Tuesday in Abuja.
Rwanda aspires to attain an upper middle, and then transition to a high income country status by 2035 and 2050 respectively. This aspiration recognises and builds on the role played by non-metallic mineral products in ensuring the country achieved an average 9.4% growth per annum in its industrial sector since 2009.
Tanzania Can Do More to Protect Its Women and Girls and Promote Gender Equality (World Bank)
While there are many promising opportunities to advance women’s empowerment and gender equality in Tanzania, the high rates of gender-based violence in the country remain a serious concern, according to two new World Bank Group studies which call for the Government of Tanzania to continue to strengthen the policy and legal environment to protect the nation’s women and girls. The two reports, the Tanzania Gender Assessment 2022 and the Tanzania Gender-Based Violence Assessment 2022, bring together the latest evidence on gender gaps in human endowments, economic opportunities, ownership and control of assets, and (women’s) voice and agency; and the effectiveness of concrete policy and programmatic interventions that address these underlying drivers.
Seychelles starts first WTO policy review on trade and transparency issues (Seychelles News Agency)
Seychelles has started its first policy review with the World Trade Organisation (WTO) to identify gaps in existing policies, which once addressed, are expected to improve transparency in the sector and attract more investors, according to officials.
Veronique Brutus, the trade attaché at the Permanent Mission of Seychelles to the UN Office and other international organisations in Geneva, told reporters on Monday that the review will help Seychelles re-look at its trade policies. “The review will help us identify the gaps that exist if there are any. From the review, we will be able to address these gaps and that will allow us to be more efficient in the way we implement our trade policies,” said Brutus.
She added that the review will help Seychelles facilitate and address trade in a better manner, as well as better implement policies and work with business. In return, the review will provide investors with more confidence as the exercise is about transparency, said Brutus. “The more we are transparent, the more investors will be interested to do business with Seychelles,” she said.
Egypt’s Tourism Hit by Ukraine Crisis (Inter Press Service)
Tourism to Egypt’s GDP is as vital as the Nile to its people. After Egypt’s tourism sector began to recover following the Russian plane crash in 2015. Then COVID hit, and now the Ukrainian war shot a bullet through its heart. The protracted Russian conflict with Ukraine threatens several tourist destinations that rely on Russian visitors. Turkey, Uzbekistan, the UAE, Tajikistan, Armenia, Greece, Egypt, Kazakhstan, and Cyprus are among the top 25 countries for outbound Russian tourism by flight capacity, according to Mabrian Technologies, an intelligence platform for the tourism industry. Egypt’s economy is also heavily reliant on tourism from Russia and Ukraine, with the two countries accounting for roughly one-third of all visitors each year. In 2015, Russia imposed a slew of punitive measures against Egypt in the tourism sector, wreaking havoc on the industry and its workers.
Tunisia: Accelerate structural reforms to boost future growth and lift living standards, says OECD (OECD)
Accelerating structural reforms will be the key for Tunisia to recover fully from the COVID-19 recession, overcome economic vulnerabilities and raise living standards for all, according to a new OECD report. The latest OECD Economic Survey of Tunisia highlights the country’s success in fighting poverty and reducing gender imbalances in education and well-being in the past decade. This progress provides a solid base for an inclusive recovery from the 2020 recession. A pickup in commodity prices seen since the beginning of the war in Ukraine and the Omicron and potential new variants of COVID-19 could slow the recovery and exacerbate structural challenges. In the short term, it is very important to raise the vaccination rate, maintain support for the most vulnerable, and overcome political uncertainties. In the long term, reforms are needed to improve the business climate, education, professional training, and active labour market policies. Ensuring macroeconomic stability – already threatened by large budget and balance of payments deficits, a large debt stock, and rising inflation – would help to improve the country’s credit ratings and reduce financial vulnerability.
African and regional trade news
Leverage AfCFTA to promote pharmaceutical industry – Wamkele Mene (BusinessGhana)
He said the pharmaceutical industry could build the continent’s research and development capacity, harmonise regulations in drug registration, and help countries comply with best practices and international standards.
Mr Mene was delivering the closing keynote speech at the 8th annual London School of Economics (LSE) Africa Summit held in London on Sunday on the theme: “African Prosperity through Peace, Health and Development”.
Mr Mene said improving the health of a nation’s citizens could directly result in economic growth because there more people would be able to conduct effective activities in the workforce.
Mr Mene said the operationalisation of the AfCFTA had put Africa in a stronger position to address challenges in the healthcare space, especially in the pharmaceutical industry. That, he said, would be done by creating a platform to harmonise national standards, pool procurement of medicines and pharmaceutical products as well as increase investment in pharmaceutical production and exports.
ECOWAS holds consultative meetings on Regional AfCFTA Implementation Strategy (ECOWAS)
The ECOWAS Commission continued its consultations with State and Non-State Actors on the formulation of the ECOWAS Regional Implementation Strategy for the Agreement of the African Continental Free Trade Area (AfCFTA) on 22 March 2022. With a view to ensuring that that the AfCFTA outcomes are consistent with regional advancements and that the Agreement builds on the ECOWAS acquis, the Commission is accelerating the development of a regional implementation strategy taking a participatory and inclusive approach. To date, twelve (12) ECOWAS Member States have developed or are in the process of developing their national AfCFTA implementation strategy.
In his remarks, Mr. Kolawole SOFOLA, Acting Director of Trade at the ECOWAS Commission, on behalf of Mr. Tei KONZI, Commissioner for Trade, Customs and Free Movement, recalled the coordinating role of the ECOWAS Commission in the negotiations and implementation of AfCFTA Agreement by its Member States. He stated that the formulation of an ECOWAS regional implementation strategy will ensure a coordinated, integrated and coherent implementation of the AfCFTA. He emphasized the importance of deepening regional and continental value chains so that all Member States benefit from AfCFTA, irrespective of the seize of their national economy.
Measures to Improve Transport Corridors’ Performance (COMESA)
The need for increased border operating hours at the regional transport corridors is one of the key recommendations that emerged from a recent meeting of ministers of transport from the Democratic Republic of Congo, Zambia and Namibia. Also proposed for immediate implementation was the harmonizing of transit fees and cross border charges among the countries as recommended by the various regional economic communities namely COMESA, East African Community and the Southern Africa Development Community. This was during the 12th Tripartite Ministerial meeting on 16 – 17 March 2022 in Lubumbashi, DR Congo.
The Ministers agreed to improve the road infrastructure on the Walvis Bay-Ndola-Lubumbashi corridor to facilitate easier and quick transit for freight and persons travelling along the corridor. They instructed border agencies along the corridor to promote free movement of people in line with the African Continental Free Trade Agreement.
Further, the meeting recommended the harmonization of axle load limits by DR Congo and gross vehicle mass limits in line with the tripartite blocs (SADC, COMESA, EAC) vehicle load management strategy.
The blocs have so far harmonized the COVID Guidelines on Trade and Transport Facilitation for Safe, Efficient and Cost-Effective Movement of Goods and Services during the COVID-19 Pandemic. Key activity under this initiative was the development of the Corridor Trip Monitoring System (CTMS) in response to the transport and transit challenges posed by the pandemic.
IICB recording notable progress towards SADC regional integration (SADC)
The Southern African Development Community (SADC) has stepped up efforts towards regional integration through advancing various programmes with support from its International Cooperating Partners. One of these programmes is the Integrated Institutional Capacity Building Programme (IICB) for the SADC Secretariat and National Stakeholders. The IICB (2019-2023) is a €18,7 million programme funded by the European Union (EU) and Germany to increase capacity for the SADC Secretariat to enhance the regional integration agenda.
IICB is primarily aimed at accelerating progress towards the implementation of the SADC regional integration agenda through strengthening the SADC Secretariat’s capacity and Member State structures under two specific objectives.
The IICB’s specific objective 1, whose end date is 30 July 2022, seeks to enhance the capacity of SADC Member State structures to facilitate and co-ordinate implementation of the regional agenda at country level.
Under this specific objective, 70% of country level implementation of regional priorities has been reported through the SADC Monitoring and Evaluation system. Seven SADC Member States are implementing the Regional Indicative Strategic Development Plan (RISDP 2020-2030) and priority protocols, out of the eight targeted countries. These are Botswana, Lesotho, Malawi, Mozambique, Namibia, United Republic of Tanzania and Zambia.
Stakeholders discuss African ports and the role of the blue economy in integration (AfDB)
The African Natural Resources Center of the African Development Bank brought together a range of stakeholders on 30 March to explore ways to integrate African ports more effectively into the blue economy. Participants at the meeting—including representatives of the African Development Bank, the African Union Development Agency, governments, and regional bodies—agreed on the pressing need to develop national strategies to harness the blue economy. There was also consensus that ports, as a locus of many blue economy activities, should be an integral part of such a strategy. The blue economy approach promotes the sustainable use and management of marine and coastal spaces and resources for economic growth. The concept covers fisheries, aquaculture, maritime transport, tourism, and offshore energy, among other sectors. “There are a lot of opportunities to strengthen business networks through a blue economy, and ports play a key role in that,” said Dr. Bernice McLean of the African Union Development Agency.
SADC, AfDB and Partners launch ProFishBlue programme for the SADC region (SADC)
The Secretariat of the Southern African Development Community (SADC), African Development Bank (AfDB), Member States and implementing partners have launched the Programme for Improving Fisheries Governance and Blue Economy Trade Corridors (ProFishBlue) in the SADC region at a ceremony that was held in Gaborone, Botswana on 30 March, 2022. ProFishBlue was approved by the Board of Directors of the AfDB on 22 October, 2021 with a grant totaling US$9.2 million to support the implementation of best practices of fisheries governance and blue economy trade corridors in the SADC region. The project aims to promote sustainable management of fisheries resources within the blue economy context to improve food and nutritional security, create employment through value chain activities, facilitate intra-regional trade, and build adaptive capacity. Potential co-financing is also expected from Global Environment Facility (GEF) and other resource partners.
AGRA, COMESA to Collaborate in Promoting Agriculture Productivity (COMESA)
The Alliance for a Green Revolution in Africa (AGRA) and COMESA will renew their commitment to enhance the production of food to ensure food security and regional food balance. The aim of this commitment is to eradicate poverty by the year 2030.
AGRA’s deputy president in charge of policy and state capability Apollos Nwafor said AGRA is mobilizing at least $500 million in the next five years to directly increase incomes and improve food security for nine million farm households. This will be directly from its activities, its grantees and partners, to increase productivity and access to markets and finance. It is part of the new AGRA Strategic Framework 2030 to scale-up, accelerate and create conditions for agricultural transformation. “Four years into our five-year strategy, integration is at the heart of everything AGRA does such as multiple systems working together to deliver fertilizer, seeds and knowledge to smallholder famer,” he added.
Afreximbank launches 4 billion US dollar Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) (Afreximbank)
The Board of Directors of African Export-Import Bank (Afreximbank) on 31 March 2022 approved the launch of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA), a programme of credit facilities that the Bank has developed to manage the impacts of the Ukraine crisis on African economies and businesses. The programme amounts to US$ 4 billion. The Russia-Ukraine crisis which escalated on 24 February 2022 has had a significant effect on the global economy. Given the importance of both Russia and Ukraine as sources of crude oil and gas, raw materials and grains, the outbreak of the conflict has wider repercussions on a global scale, including adversely affecting African economies, especially those that rely heavily on grain, fertilizer and fuel imports. The UKAFPA programme has the following objectives: Import Re-Order Cost Adjustment Financing, to help countries to meet immediate import price increases pending domestic demand adjustments. Oil and Metals Buy-Back Financing to refinance over-collateralized loans in the context of the current high oil and metal prices, and thereby release more free cashflow for use in meeting other urgent needs, eg. food and fertilizer imports and servicing rising cost of debt. Commodity Export Revenue Stabilisation to help countries and companies to structure and enter derivative contracts at today’s high commodity prices and stabilise future export earnings. Tourism Revenue Deficit Financing to be extended to Central Banks of tourism dependent economies to cover foreign exchange revenue shortfalls arising from a decline in tourism arrivals from Russia and Ukraine. National Export Revenue Acceleration Facility to be used to accelerate the completion of impactful export-oriented projects by expediting access to foreign currency for use in importing critical equipment, technology, and expertise, for project completion.
West Africa Faces Historic Food Crisis Driven By Conflict, Price Surge (I24NEWS)
Global food prices are surging, and trade has been disrupted due to Russia’s invasion of Ukraine. West Africa is facing its worst food crisis on record, aid agencies said Tuesday, as the region is affected by conflict, drought, and the impact of the war in Ukraine on food prices and availability. Roughly 27 million people are suffering from hunger in West Africa, possibly rising to 38 million by June, a 40 percent increase from last year and a historic high, 11 international aid organizations said in a joint statement.
Additionally, global food prices are surging, and trade was disrupted due to Russia’s invasion of Ukraine. Border closures caused by Covid also had a negative impact, the Food Crisis Prevention Network said.
ECOWAS, EU in fresh move to tackle maritime insecurity (The Guardian Nigeria)
The Economic Community of West African States (ECOWAS) Commission is collaborating with the European Union (EU) to tackle maritime insecurity along the West African coast. Meeting in Abuja to develop the framework known as the ‘European Union-funded Support to West Africa Integrated Maritime Security (SWAIMS) project’, the gathering which drew participants from all the ECOWAS member countries, is expected to review and refine modalities on the distribution of essential maritime security equipment across ECOWAS’ littoral countries. Speaking on the modalities of the meeting, the Head of ECOWAS’ Regional Security Division, Col. Abdourahmane Dieng, observed that maritime insecurity is one of the most persistent and intractable threats to maritime communities and economic prosperity in the sub-region.
Among the ongoing efforts at tackling insecurity along the West African corridor is the EU-funded ECOWAS project tagged SWAIMS, a collaborative, complex, multi-component, regional initiative implemented by various partners and covering 15 ECOWAS countries.
Government Ministers from 11 countries in East and Horn of Africa, have signed two agreements in the past week committing to work more closely to realise the benefits of migration for sustainable development and economic growth, while enhancing protection for millions of migrant workers. Ministers from Burundi, Djibouti, Ethiopia, Eritrea, Kenya, Rwanda, Somalia, South Sudan, Sudan, the United Republic of Tanzania, and Uganda signed an agreement promising to work together to realize the potential of labour migration as a contributor to the region’s development at the 3rd Regional Ministerial Forum on Migration (RMFM) in Nairobi, Kenya on 01 April. There are over 7.7 million migrant workers in East and Horn of Africa. In 2021 migrant workers from Sub-Saharan Africa sent back an estimated USD45 billion in remittances. According to IOM’s Africa Migration Report there are more than 21 million African migrants working in other African countries where they fill skills and labour shortages, do business and provide goods and services. But labour migrants from the region face various challenges.
Africa Oil Week partners with Africa Energy Commission (Oil Review Africa)
Major African energy event Africa Oil Week has announced a globally significant partnership with the African Union (AU), represented by its specialised energy agency, the African Energy Commission (AFREC). The partnership is a further endorsement of Africa Oil Week (AOW) as a global energy platform and forum for stimulating conversations in the Africa power and energy exploration sector.
As part of the Africa Oil Week partnership, AFREC will facilitate a ministerial dialogue to help advance Africa’s energy development in line with the commission’s energy transition programme. This programme identifies strategies needed for Africa to achieve a just energy transition in line with AU Agenda 2063, Sustainable Development Goals (SDGs) and the Paris Agreement.
“Access to affordable clean energy for Africa can be achieved by finding policy tools that balance accessibility, reliability, affordability and low carbon impact,” said AFREC executive director Rashid Ali Abdallah.
Effective engagement with Africa: Capitalizing on shifts in business, technology, and global partnerships (Brookings Institution)
Africa, enabled by rapid technological change and demographic shifts, is primed for a major socioeconomic and structural revolution. This report analyzes the major trends driving this change, along with the opportunities and challenges stemming from it. Africa has the fastest-growing population in the world. In fact, one in four global citizens will be African by 2050. This growing population is projected to become increasingly concentrated in urban areas as Africa continues to experience a rise in the influence of and opportunities in its major cities. This young, growing workforce will be complemented by a rapidly expanding middle class with trillions of dollars in buying power in the coming decades. This report argues that, if harnessed successfully, these trends represent a significant opportunity for African countries and the U.S. to shape a transformation on the continent that ensures prosperity and equitable growth for all.
New reports the African Development Bank has produced on Benin, Djibouti, Somalia, Zimbabwe and Liberia show the countries have successfully put national policies in place to advance gender equality. At the same time, the Covid-19 pandemic has sharpened the challenges women face. Prepared in collaboration with the countries and the international partner, UN Women, the Bank’s country gender profiles evaluate gender equality and offer recommendations to drive parity across a range of metrics. These include strategies to bolster the responsiveness of development initiatives. “The country gender profiles are timely as countries define actions and policies to support recovery from the pandemic. Gender data and analysis are critical but remain limited, slowing the achievement of the gender agenda. We hope these reports will help address this important challenge,” said Amel Hamza, Acting Director for Gender, Women and Civil Society at the Bank.
The IMF recently did a stocktaking of six countries with advanced central bank digital currencies (CBDC) pilots, and three broad themes emerged. First, objectives and needs for CBDC may vary across jurisdictions. In some countries, CBDC is all about financial inclusion—consider, for example, island nations where a digital means of payment is needed given the cost and difficulty of getting cash to citizens spread across many islands. In other places, CBDC is about enhancing resilience—becoming an essential backup if private sector solutions fail. And in other countries with dominant private sector service providers, CBDC is also about promoting market competition. Thus, central banks should tailor the design of CBDCs to meet their specific objectives and needs, reflecting country circumstances. There is no “one size fits all” approach.
Second, financial stability and privacy considerations are paramount for the design of CBDCs. Central banks are committed to minimizing the impact of CBDC on financial stability, including the risk of banking disintermediation. it’s vital that policymakers get the mix right between protecting privacy, promoting financial inclusion, and ensuring financial integrity.
Third, introducing a CBDC is a complex process requiring appropriate resources and capacity. Areas for further efforts may include new legal frameworks, new regulation, and public-private partnerships to ensure successful adoption, or the building of additional features.
How Africa can navigate growing monetary policy challenges (IMF Blog)
Sub-Saharan African countries face important monetary policy challenges. The pandemic dented economic growth, and even now the recovery is likely to leave output below the pre-crisis trend this year. Several countries in the region have also seen inflation increase, a challenge that is in some cases compounded by fiscal dominance emanating from high public debt levels.
Many of these economies may also face capital outflows as the major central banks in advanced economies withdraw policy stimulus and raise interest rates in the period ahead. The economic impact of the conflict raging in Ukraine—including the attendant sharp rise in energy and food prices—is likely to further intensify the challenges. How should countries in sub-Saharan Africa manage this volatile environment?
Unity of Purpose to Accelerate Africa’s Sustainable Development (Inter Press Service)
The COVID-19 pandemic reversed several development gains on the continent, and Africa’s leaders are convinced stronger cooperation in boosting investment in green growth will help Africa meet the Sustainable Development Goals (SDG). African economies took a hit during the pandemic, which governments say has led to reverse progress made in health care, education, poverty alleviation, food security, and industrialisation as part of delivering on the SDGs adopted by the UN in September 2015.
“Over the years, Africa had made significant progress in tackling economic challenges. However, COVID 19 has slowed the development gains in some cases reversed progress,” Kagame noted. He called for solid mechanisms to monitor and change the implementation of the SDGs. “We have to own and lead the process and support one another. That’s why these agendas [2030 Agenda and Agenda 2063] are important because it is about achieving the stability and sustainability of our continent.”
Global economy news
Members launch discussions under trade and environmental sustainability work plan for 2022 (WTO)
Participants addressed the following themes as set out in the work plan - trade-related climate measures and policies; challenges and opportunities for sustainable trade; environmental goods and services; the circular economy and circularity; and subsidies.
Under the theme of trade-related climate measures, participants were provided with an overview from the WTO Secretariat on different types of trade-related climate measures and information included in the WTO’s Environmental Database. More than 4,600 trade-related climate measures were notified to the WTO between 2009 and 2020, with the large majority relating to alternative and renewable energy, and energy conservation and efficiency.
UN Oceans Forum to chart course for ‘Blue Deal’ on economic recovery and sustainable growth (UNCTAD)
Protecting our ocean and boosting its economic benefits demands a global trade, investment and innovation “Blue Deal” to create a sustainable and resilient ocean economy that benefits all. An UNCTAD-led coalition will chart the course for this vital initiative at the fourth edition of its Oceans Forum, set for 6 to 8 April in Geneva and online. “This is the perfect time to set a new direction by investing in sustainable ocean-based economies,” said UNCTAD Secretary-General Rebeca Grynspan. “The ocean’s economic, social and environmental value can help us recover better from the pandemic and cushion us against future crises,” she said. “But we have to find the right balance between benefitting from the ocean and protecting its resources.”
The 41st session of the Joint Parliamentary Assembly (JPA) took place from 1-3 April 2022 in Strasbourg, in the presence of Members of the European Parliament (MEPs) and their counterparts from 78 countries of the Organisation of African, Caribbean and Pacific States (OACPS). Among the issues discussed were the challenges of peace and security within Members of the OACPS and climate change, in particular, the European Commission’s (EC) proposal to establish a Carbon Border Adjustment Mechanism (CBAM) with the European Union (EU). Participants noted that the CBAM will put pressure on exporters to the EU, to decarbonise the production of certain goods and that many exporters and producers in Least Developed Countries (LDCs) and other developing countries such as those in members of the OACPS will face particular difficulties to finance necessary investments. Members also discussed trade issues guaranteeing access to the European Market for producers in the framework of new regulations arising from the green pact for Europe.
Digital destiny for development, says Secretary-General (The Commonwealth)
Game-changing innovation has a key role in supercharging the sustainable development of Commonwealth member countries. Opening the latest in a series of Data, Technology and Digitalisation workshops organised by the Secretariat, Secretary-General Patricia Scotland emphasised how transformative technologies, combined with good quality accessible data and digital skills, are part of the Commonwealth’s vision and practical action towards a more inclusive world. The Secretary-General said: “I am delighted to open an event with such distinguished experts, who will guide us through the process of applying transformative technologies in all kinds of situations – whether tackling entrenched inequalities, sudden crises, natural disasters or the pandemic.”
Global Perspective on Coal Jobs and Managing Labor Transition Out of Coal (World Bank)
Although the conflict in Ukraine has increased volatility in global energy markets, the urgency of the coal transition remains unchanged. . The developing world has more than doubled its per capita electricity consumption since 1990, driving up global demand for coal. A new World Bank report, Global Perspective on Coal Jobs and Managing Labor Transition out of Coal, finalized December 2021, reviews these challenges through the lens of five countries. The report offers recommendations on how governments can prepare for job losses that arise from future mine closure and highlights policies to support workers through the transition period and into alternative employment.
Members welcome COVID-19 trade-related measures report, agree on future experience sharing (WTO)
The WTO Secretariat presented a revised report that compiles and summarizes relevant information on export prohibitions and restrictions that have been notified by members under the 2012 Decision on Notification Procedures for Quantitative Restrictions (QR Decision), the voluntary communications submitted by members to the Committee with information on trade-easing measures as well as other measures by WTO members collected under the WTO’s Trade Monitoring Exercise and listed in “COVID-19: Measures affecting trade in goods”.
The report indicates that as of 25 March 2022, a total of 98 measures that prohibit or restrict exports as a result of the COVID-19 pandemic have been adopted by members. These measures have either been formally notified as a quantitative restriction or recorded by the WTO’s Trade Monitoring Exercise.
WTO launches book on trade in knowledge in today’s technological, commercial environment (WTO)
Co-edited by Antony Taubman, Director of the Intellectual Property, Government Procurement and Competition Division at the WTO, and Jayashree Watal, Honorary Professor at the National Law University of Delhi and former WTO Counsellor, the publication offers a fresh understanding of what it means to trade in knowledge in today’s technological and commercial environment. Drawing together insights from a diverse range of leading international scholars and analysts, the publication explores how to build more inclusive, up-to-date and precise ways of measuring knowledge flows, discusses how more nuanced and effective use of these data may guide policymakers and provides insights into the prospects for knowledge-based social and economic development, moving legacy models and adapting to the realities of the contemporary knowledge economy. The book also proposes ideas for updated systems of governance that promote positive sum approaches to the creation and sharing of the benefits of knowledge as a public good, with a view to informing planning for development.
China lockdowns, Russia-Ukraine conflict cloud container outlook (Logistics Update Africa)
The shipping industry has entered troubled waters again. “The ongoing Russia-Ukraine war has further disrupted the supply chain — blocking the flow of freight, fuel, and even funds,” says Container xChange in its latest report. Overall, the conflict between the two countries is likely to affect container availability globally but the situation will vary from port to port and region to region, the report added. Strict lockdown in several cities in China, including Shanghai and Shenzhen, is a worrying indicator. “This will further reduce capacity and cause a surge in already inflated shipping prices, says Johannes Schlingmeier, CEO, Container xChange. “The shockwaves will be felt across the U.S., and almost everywhere in the world. Some hypothesise it being “practically impossible” to get containers out of said ports at current.
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Local trade news
SA Canegrowers welcomes delay in sugar tax increase (Engineering News)
Industry organisation SA Canegrowers has welcomed the announcement by Finance Minister Enoch Godongwana of a 12-month delay in the implementation of the planned increase of the Health Promotion Levy (HPL), which is also known as the sugar tax. An increase in the sugar tax from 2.21c/g to 2.31c/g had been announced in the Minister’s Budget Speech in February and was expected to come into effect on April 4.
Consistency in policy is key for industrialising renewables – SAWEA (Engineering News)
The South African Wind Energy Association (SAWEA) and its sector stakeholders have reiterated that the industrialisation of the renewable energy sector holds enormous potential across the value chain, including economic power and societal benefits. The association, in a media release issued on April 4, stressed the importance of managing the industrialisation of the renewables sector responsibly, by ensuring components were localised on the basis of their competitiveness and value-add. SAWEA noted that predictable and continued procurement was needed to underpin any industrialisation policy, while incentives were needed to build more and better local capabilities, if the wind industry was to compete with international markets, while supporting local manufacturers to become competitive for export markets.
“Transformation goes hand-in-hand with the industrialisation of the wind power sector. And market certainty is the most important aspect to building a local manufacturing industry.
SA has no current plans to discontinue use of coal (SAnews)
There are currently no plans to discontinue the use of coal as part of the country’s energy mix, says Deputy President David Mabuza. He said the country’s energy generation is guided by the Integrated Resource Plan (IRP) 2019, which provides for the use of all energy resources available, including, among others, coal, gas and renewable energy sources.
“Coal remains one of our largest natural endowments that will continue to form part of our energy mix in terms of the IRP 2019,” he said. He said, however, that despite this, the country is committed to forging a low-carbon growth path that prioritises environmental sustainability.
Enhanced inclusive trade facilitation reforms in Zambia thanks to WCO support (WCO)
As part of its multi-year and strategic Mercator collaboration with the Zambia Revenue Authority (ZRA) towards comprehensive implementation of the WTO’s Trade Facilitation Agreement (TFA), the WCO conducted a mission to take stock of and monitor activities rendered under the framework of by the United Kingdom’s Her Majesty’s Revenue & Customs (HMRC) supported Trade Facilitation Capacity Building Programme. The mission, which took place from 11 to 18 March 2022 and was also supported by a Mercator Programme Advisor of the Lesotho Revenue Authority, served to identify progress achieved in the past years, while also discussing challenges faced related to the COVID pandemic. Moreover, the deliberations also focused on identifying opportunities for further collaboration and capacity building under the next phase of the HMRC Pogramme ‘Accelerate Trade Facilitation’ which kicks-off in April 2022.
Zim reaps huge benefits from re-engagement (The Herald)
A COCKTAIL of policies epitomised by President Mnangagwa’s ‘Zimbabwe is Open for Business’ mantra and the engagement and re-engagement drive have seen the country ascending to the summit of global bodies such as the Kimberly Process Certification Scheme (KPCS). Presently, Zimbabwe is the vice chair of KP — a global body of diamond-producing nations which has 52 participants, representing 82 countries, with the European Union and its member states counting as a single participant.
“The mining sector should also strive for greater sustainability, competitiveness and modernisation as we grow the economy. With enhanced investment within the sector, we should continue to see increased production, productivity, employment creation and exports of processed goods as we march towards attaining our vision of a prosperous and empowered upper middle-income economy by 2030,” said President Mnangagwa. Once characterised unfairly as an outcast due to negative portrayal from some Western countries, especially the United Kingdom, Zimbabwe has, however, under President Mnangagwa’s policies, flourished, earning plaudits both regionally and globally.
CBK sees current account deficit rising to 5.9 percent (Business Daily)
The Central Bank of Kenya (CBK) has revised its projection of this year’s current account deficit to 5.9 percent of GDP from 5.2 percent previously, citing the higher price of crude which has raised Kenya’s petroleum import bill.
This points to a tighter dollar supply in the market as the gap between outflows and inflows widens, which will put the shilling under further pressure and raise the cost of living for Kenyans. The prevailing cost of crude is a major factor in determining the directing of the current account, given that petroleum products account for 17.5 percent of the country’s total import bill.
Large-scale farmers locked out of cheap fertiliser deal (Business Daily)
Large-scale farmers have been locked out of the Sh5.7 billion fertiliser subsidy after the Ministry of Agriculture limited the number of bags to 10 per grower. Agriculture Cabinet Secretary Peter Munya said farmers will be allowed to buy five bags of planting and top dressing fertilisers each to benefit large number of growers following a cost reduction that will see a single bag drop by 56 percent.
Millers seek lifting of India wheat importation ban (Business Daily)
Kenya may run out of options in the importation of wheat to cover for the local deficit if it fails to lift the current restrictions on imports from India, large-scale millers have warned. Nairobi has restricted imports of wheat from India because of a fungal disease that the country is worried would affect local crops if it is allowed. Currently, local millers are hardly accessing wheat from the Black Sea following the closure of ports along this shipping corridor as a result of the ongoing war between Russia and Ukraine. Kenya gets nearly 66 percent of its supplies from the two warring nations.
No reduction in duty for imported vehicles – Customs (The Guardian Nigeria)
The Nigeria Customs Service (NCS) has debunked claims that it has reduced duty on vehicles from the current 35 per cent to 20 per cent. Deputy Comptroller of Customs and the National Public Relations Officer of the service, Timi Bomodi, yesterday, confirmed to The Guardian that the alleged 20 per cent duty rate was “just a mix-up,” stressing that the 35 per cent duty subsists. Some clearing agents had earlier raised concerns that the duty rate applicable on Common External Tariff (CET) trade portal on vehicles under HS Code 8703 was last Friday reduced to 20 per cent, a development, which created confusion among their colleagues and other stakeholders.
Lagos Free Zone Investment to Hit $3.5bn in 2024 (This Day)
Owners of the Lagos Free Zone (LFZ) have stated that its investment in the LFZ is expected to hit over $3.5 billion in 2024. According to them, the move is a clear demonstration of its commitment to the Nigerian economy, adding that over $2 billion has been expended so far in the LFZ project. The Managing Director and Chief Executive Officer, LFZ, Mr. Dinesh Rathi, at a media parley to hint newsmen over the level of progress made so far said over 30 per cent of the zone has been developed so far with plans to take the development to 35 per cent by the end of 2024. He said the LFZ is Nigeria’s first private owned free zone that aims to be the most preferred industrial hub in West Africa with world class-infrastructure, facilities and services.
Importers exporters against no duty no exit policy (The Business & Financial Times)
The Importers and Exporters Association of Ghana is one of the organisations in disapproval of the “no duty no exit policy at the MPS Terminal 3” that the finance minister announced on Thursday, March 24, 2022. The finance minister, Ken Ofori-Atta, in his press conference, listed this policy as one of initiatives government will embark on imminently to plug revenue leakages as it seeks to boost the economic fortunes of the nation.
The Executive Secretary of the Importers and Exporters explained that “when MPS was set up we did not give MPS the power to do intrusive examination of things like spare parts, second-hand clothing, second-hand cars. Such cargoes are supposed to go to the Golden Jubilee Terminal. We should know that, in case of cars, they are further transferred to Safe Bond Car Terminal.
Customs to leverage ICUMS in the attainment of revenue target (The Business & Financial Times)
The Ghana Revenue Authority has been tasked by government to raise revenue of GHC 80.3 billion for the year 2022. The System Administrator at the Tema Collection of the Customs Division of the GRA, Esther Amekudzi expressed that “unlike previously where you had different platforms to use in one clearance process, now, with ICUMS it is seamless.”
She also indicated that the Pre-Arrival and Assessment and Reporting System has been enhanced with the introduction of ICUMS.
Develop plausible ways of making FDI attractive – GITFIC to ECOWAS leaders (3NEWS)
The Ghana International Trade and Finance Conference (GITFIC) has recommended plausible ways to West African leaders to improve on activities that attract Foreign Direct Investment (FDI) while limiting the activities that bring about bottlenecks to host countries. They said international trade was the source of FDI and ECOWAS must uphold the AfCFTA agenda in high esteem to promote FDI to the sub-region. “Various governments through their national investment agencies should work towards a conducive political and business climate to improve FDI inflow to the sub-region and tern scrutiny, in terms of documentation and the type of FDI to be allowed to the sub-region, should be checked rigorously before its establishment.” This was part of the recommendations of the GITFIC on the monthly research focused on FDI and its benefits and demerits in the West African sub-region and copied to the Ghana News Agency in Accra on Monday.
Recent cost-cutting measures inadequate, structural changes needed – Prof. Bokpin (The Business & Financial Times)
Recent fiscal and monetary measures announced by managers of the economy to rein-in the downturn are far from adequate long-term solutions, as structural inefficiencies remain across the ‘value-chain’ of the economy.
This is according to economist and professor of Finance at the University of Ghana Business School (UGBS), Prof. Godfred Bokpin, who argues that the cyclical nature of Ghana’s visits to the International Monetary Fund (IMF) for a bailout – 16 times since 1965, translating to an average of once every 3.5 years – highlights deep-rooted problems that must be addressed urgently. Failure to do so, he added, will make the periodic trip to the Bretton Woods institution inevitable, as the “economic realities will always prove stronger than any political resistance”.
Ghana receives €44.7 million boost for agriculture (3NEWS)
Ghana, the European Union (EU) and AFD have signed a 44.7 million euros Agricultural Water Management Project (AWMP) Financing Agreements to augment agriculture activities in the country. The project will support the expansion of irrigated agriculture lands in the Northern Regions.
EU Commissioner for International Partnerships Jutta Urpilainen reaffirmed the EU’s commitment to support the Agricultural sector in Ghana in order to improve the quality of life of communities, especially in the North of the country. Adding that Irrigation is a crucial factor in providing a reliable, climate-resilient source of income for smallholder farmers.
Commodities imports deepen Morocco’s trade deficit up to Feb 2022 (The North Africa Post)
Morocco’s trade deficit rose 57% up to February this year, due to a surge of commodities prices in the international market. Tensions in the black sea and the loss of Ukrainian and Russian commodities and wheat exports sent prices skyrocketing hitting the finances of import-reliant states. For example, Morocco’s ammonia imports, used in the production of fertilizers, rose from 693 million dirhams in February to 2.92 billion dirhams, while wheat imports jumped 96% to 4.1 billion dirhams.
Driving Sustainable Economic Growth in Guinea-Bissau (By Nicholas Nhede) - African Business (African Business)
Despite having vast energy resources, Guinea-Bissau has one of the least developed economies in the world. Due to the west African country’s slow progress regarding the exploitation of its energy resources, due to limited investments in infrastructure development and political instability, little progress has also been made in expanding other sectors such as manufacturing and mining.
However, recent increases in capital expenditure are set to revitalize the economy during 2022. In addition, for the near-term, addressing corruption and boosting infrastructure rollout will enable Guinea-Bissau to grow its economy by 3.9% in 2022 and ensure that inflation remains stable at 1.9%, according to development finance institution, the African Development Bank (AfDB).
African trade news
Manufacturers check their Readiness to compete under the Africa Continental Free Trade Area (Capital)
The East African Business council is calling upon the business community especially manufacturers to emphasize quality and value addition if they are to achieve their dream of competing under the Africa Continental Free Trade Area This follows a recent engagement of CEOS from various companies across the country. The meeting organised by the Uganda Manufacturers association aimed at deliberating on the readiness as East African companies to compete with other African countries under the Africa Continental Free Trade Area.
Uganda looks to open new markets as Congo’s enters EAC (The East African)
After the Democratic Republic of Congo was officially admitted to the EAC, businessmen and traders in Uganda are excited about the potential it brings. Congo adds more than 90 million people to 177 million East Africans. In the region, Uganda is the second largest exporter to Congo, after Rwanda. East Africans can now freely go to Congo if the trade and movement barriers such as the $50 visa fee are removed. The DRC shares borders with all the East African countries except Kenya.
East African lawyers eye oil pipeline rewards (The Citizen)
The East Africa Law Society (EALS) yesterday said it is high time lawyers in the bloc formed a large firm that will enable members of the regional bar to have opportunities that will be brought by the East African Crude Oil Pipeline (Eacop).The regional body says the project is huge for lawyers in the bloc to benefit individually, hinting that the law practitioners will only benefit by working through a single body or by joint ventures with other international firms. The EALS president, Mr Bernard Ound, made the remarks yesterday when addressing members of the Tanzania bar association during a conference to underscore means of enjoying the opportunities to be brought by the 1,443km pipeline from Hoima in Uganda to the Indian Ocean port of Tanga in Tanzania. “We need to work together even if under a joint venture with foreign firms. Skills transferred will be useful to bloc members of the regional bar in tapping future opportunities,” said Mr Ound.
The 1 000km road that will reshape the African economy (Mail & Guardian)
Africa is ramping up efforts to upgrade connections between its main cities and hubs, through ambitious infrastructure projects led by regional blocs, with the latest project due to reach completion in 2025. The African Development Bank (AfDB) recently announced it had secured the 15.6 billion US dollars necessary to fund a “game-changing” West African highway. The East African community has 6 cross-border road projects, totaling 1504 km, while Cemac – which groups central African nations – and SADC (Southern African states) also have similar programs. Meanwhile, West Africa is gaining momentum thanks to the 1,081km highway that will soon link Abidjan and Lagos.
The five countries that the highway passes through have a combined GDP of 589 billion US dollars and a population of 284 million, according to World Bank figures.
West African nations are expected to ink agreements that will ease cross-border trade and transit, which will allow the emergence of new markets, industrial parks and logistic hubs along the highway. The Abidjan-Lagos coastline is an area that aggregates nearly 75% of West Africa’s commercial activities, according to the AfDB. The transport sector accounts for 5% to 8% of the region’s gross domestic product and plays a key role in economic development and job creation, particularly for women and young people.
Access to deepen Africa trade finance, diaspora remittances (The guardian Nigeria)
The Group Managing Director/Chief Executive Officer, Access Holdings Plc, Dr. Herbert Wigwe, has said that the bank, in its move to become one of the top five in Africa by 2027, plans to deepen its trade finance capacity to support intra-African trade, enhance payments and diaspora remittances. According to Wigwe, the bank had never failed to meet its aspirations in terms of growth in its 20-year history, adding that the bank’s projection for 2027 would be pursued aggressively and be met.
“Banking is changing at a faster pace than we can imagine,” Wigwe, who has transitioned to Group Managing Director/Chief Executive Officer of Access Holdings Plc, said. According to him, technology is changing all things. He said that anyone that failed to change with the trends would suddenly wake up one day to find out he had no business anymore.
African Union Endorses the African Diaspora Finance Corporation (ADFC) (African Union)
On 2-3 February 2022, the 40th Session of the African Union Executive Council formally adopted the ‘Strategic, Business and Operational Framework for an African Diaspora Finance Corporation (ADFC)’ as the framework for the African Union legacy project on diaspora investment. This came after the endorsement by the African Ministers of Finance on 17 December 2021, and consideration by the relevant sub-committee of the AU’s Permanent Representatives Committee (PRC). The AU Commission shall undertake a further feasibility study, covering business operations, investment planning and criteria, and the application of ADFC funds.
ADFC will be set up as an independent, non-AU continental finance institution, operating as a social enterprise and working together with other African and global finance, development, and diaspora institutions. The first phase of the ADFC implementation involves the initiation of an innovative finance scheme through the RemitAid™ Remittance Match Funding mechanism.
The ADFC Framework Report is titled: ‘Strategic, Business and Operational Framework for an African Diaspora Finance Corporation: African Union Legacy Project on Diaspora Investment, Innovative Finance and Social Enterprise in Africa’.
Ministers of Employment and Labour and Social Partners from the Southern African Development Community (SADC) met on 30 March 2022 at the Bingu International Conference Centre (BICC) in Lilongwe, Malawi, to deliberate and make decisions to strengthen the Region’s labour administration systems and enhance the prospects of decent work for people in the Region.
Honourable Nancy Tembo (MP), the Minister of Foreign Affairs of Malawi and current Chairperson of the SADC Council of Ministers highlighted the need for Member States to continue responding to the pandemic by investing in economic stimulus packages, adopting pro-employment budgeting, extending social protection coverage and enhancing occupational safety and health, among other measures. In addition, she called upon the SADC Employment and Labour Sector to come up with strategies to deal with the transformative changes in the world of work, including those related to climate change and demographic transitions.
Ministers endorse establishment of Regional Consultative Process on Migration (EAC)
Ministers responsible for EAC Affairs, Labour/Home Affairs and Directorates of Immigration from the EAC Partner States have endorsed the establishment of the EAC Regional Consultative Process (EAC-RCP) on Migration in the region and recommended the same to the Sectoral Council of Ministers responsible for EAC Affairs and Planning for approval.
In addition, the EAC-RCP is expected to enhance networking relations amongst relevant governments’ ministries, departments and agencies with migration-related mandates; establish a platform for stakeholders for setting agenda as well as priorities and niches in migration in the region; enhance linkages and partnerships with the national, other regional, continental and global platforms among others.
IPCC AR6: Africa’s ability to adapt being pushed to its limit, creating urgency to reverse course (UNECA)
The Inter-Governmental Panel on Climate Change (IPCC) issued the second part of its 6th Assessment Report, focusing on Impacts, Adaptation and Vulnerability. This timely report warns of multiple climate change-induced disasters in the next two decades, even if strong action is taken to reduce greenhouse gas emissions, and further notes that the ability of human beings and natural systems to cope with the changing climate is reaching its limits. It warns that further rise in global warming would make it even more difficult to adapt. The report has, for the first time, made an assessment of regional and sectoral impacts of climate change. Across sectors and regions, the most vulnerable people and systems are disproportionately affected. The report notes that over 3.5 billion people (over 45% of the global population), live in areas highly vulnerable to climate change. Africa is identified as one of the vulnerable hotspots, with several regions, towns and cities facing very high risk of climate disasters such as flooding, sea-level rise, heat-waves, and water stress.
UNECA is working with African member states to address the underlying causes of vulnerability; build the resilience of economies, ecosystems and communities; enhance early warning and weather observation capacities, and enhance the integration of climate information services into development programmes. Through initiatives such as the SDG 7 initiative, ECA is supporting climate informed investment in renewable energy in order to increase access to energy for citizens. We also recognize the importance of regional ecosystems for carbon sequestration, and have been rolling out programmes to support nature based solutions and to build the resilience of livelihoods and ecosystems in Ethiopia.
Reasons why African countries choose to be neutral (IOL)
Last month the UN General Assembly voted on a resolution demanding Russia immediately stop its military operations in Ukraine. Out of 193 member states, 141 voted in support of the resolution, five voted against, 35 abstained and 12 didn’t vote at all. Of the 54 African member states, Eritrea voted against the resolution, 16 African countries including South Africa abstained, while nine other countries did not vote at all. In all about half, 26, of the 54 member states in Africa chose the path of neutrality in some form. So why did African countries not vote overwhelmingly to support the resolution?
I believe that the decision of several African countries to stay neutral and avoid condemning Russia for its invasion of Ukraine was made on issues relating directly to the conflict as well as broader security, economic and political considerations.
There are five key reasons: these include scepticism towards the North Atlantic Treaty Organisation (Nato), and its motives; growing reliance among some countries on Moscow for military support for the past decade; growing dependence on wheat and fertiliser imports; and a sense that this is a return of the Cold War.
Global economy news
New recommendation calls for inclusion of multi systems for proof of origin in FTAs (ICC)
A new paper from the ICC World Chambers Federation Certificate of Origin Council calls on all economies negotiating Preferential Free Trade Agreements (FTAs) to ensure that the Rules of Origin Chapter provisions include an equivalent multi system. The measure would allow traders to choose between third party certified origin and self-declared origin statement methods when satisfying their preferential origin data. The ICC WCF CO Council Recommendation – Dual system paper, noted and reviewed by the ICC Global Customs and Trade Facilitation Commission, recommends dual systems to ensure legal security for business, safeguard data quality, and promote harmonisation which reduces costs for traders and governments.
“The proliferation of different origin rules in bilateral trade agreements creates an enormous challenge for small businesses looking to tap new market opportunities. We hope this new paper will help stimulate debate on how the use of common-sense systems could help more SMEs take advantage of preferential trade agreements” said Andrew Wilson, ICC Global Policy Director.
WTO official: IP waiver on COVID vaccines would not facilitate access immediately (EURACTIV)
The negotiations for a waiver on intellectual property (IP) rights in the World Trade Organisation (WTO) are still ongoing, but a final agreement would not immediately loosen up access to COVID-19 vaccines and treatments, according to a WTO official. There is an established principle to override intellectual property rights “baked” into the WTO TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights), said Antony Taubman, director of the intellectual property, government procurement and competition division in the WTO. Speaking at a conference on Health challenges in the EU in the pandemic context at the European Economic and Social Committee (EESC) on 31 March, he stressed, however, that he cannot speak on behalf of the WTO or its members.
One overriding theme was the ongoing negotiations amongst the Quad – the EU, USA, India and South Africa – in the WTO, who are working to reach an agreement on waiving intellectual property rights on vaccines and treatments against COVID-19. A leak reported by EURACTIV in March revealed a provisional compromise.
Neutral policies, uneven impacts: Non-tariff measures through a gender lens (UNCTAD)
Support towards women’s participation in international trade has increased significantly in the past few years. Data and research both indicate a potential positive relationship between women’s economic opportunities at the international level and their competitiveness and productivity. By providing employment opportunities and enhancing consumer choice, trade can expand women’s role in the economy, thus driving their economic empowerment (World Bank, 2020). However, research indicates that the involvement of women in trade continues to be low. While trade can substantially improve economic outcomes for women, these positive effects can materialize only if the barriers that limit their participation in trade are minimized (ibid). Often, women face disproportionately higher barriers of entry to trade than men. Resource, information, time, and mobility constraints are just a few examples of the impediments women encounter in actively participate in international trade.
Women contribute to international trade as producers, entrepreneurs, workers, and consumers. Amongst the many barriers they face, limited attention has been paid to regulatory factors which can have important bearing on access to international markets, value chain upgrading, and women’s health and safety. These challenges are mostly concerned with the incidence of non-tariff measures (NTMs). NTMs are policy measures, other than ordinary customs tariffs, that can potentially have an economic effect on international trade in goods by changing quantities traded, or prices, or both. Their primary objective is to protect public health, the environment, or national security, among others. However, they also substantially affect trade through information, compliance, and procedural costs.
ICC responds to WTO slashed outlook for global trade (ICC)
Following reports that the World Trade Organization is to cut the outlook for trade growth in 2022 by half, ICC has issued the following statement.
“The WTO’s anticipated projections are very much in line with the systemic disruption to trade that we’re seeing throughout our global business network. At a micro-level this means yet more production outages, fewer jobs created and a worrying increase in consumer prices. “As we’ve said consistently in recent weeks, governments and development banks need to take a far more proactive stance to cushion the real economy from the spillover effects on the sanctions imposed on Russia. The WTO’s downgraded forecast must act as a wakeup call in this regard.
Carbon Revenues From International Shipping: Enabling an Effective and Equitable Energy Transition (World Bank)
International shipping moves the world’s clothes, electronics, and food from factories and farms to shops and households. It plays a key role in global trade and in economic development—maritime transport accounts for about 70% of global trade by value and about 80% by volume. It is also a significant source of greenhouse gas emissions (GHG), accounting for around three percent of global GHG emissions annually. If nothing changes, GHG emissions from the maritime sector will continue to grow rapidly, in direct opposition to the goals of the Paris agreement.
International shipping has pledged to at least halve its GHG emissions by 2050 (from 2008 levels), with many stakeholders pushing for full decarbonization by that date. These are ambitious but necessary goals that will require a broad range of innovative policy measures in the short, medium, and long term.
This new World Bank report looks at various options for implementing carbon pricing in the shipping industry and explores how carbon revenues could strategically be used to enable an effective and equitable energy transition in and beyond the sector.
Trade must be part of the global effort to address plastics pollution: DDG Paugam (WTO)
In his remarks delivered to OECD environment ministers and other stakeholders, DDG Paugam said plastics pollution and plastics trade “is one of the most pressing environmental issues that the WTO is currently working on, alongside ongoing global negotiations on fisheries subsidies.” “Seventy WTO members are co-sponsors to the Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (IDP), of which 50 per cent come from developing countries,” he told a ministerial plenary session on addressing the global plastics challenge. Welcoming the OECD’s Global Plastics Outlook report as an important contribution to inform the WTO’s work going forward, DDG Paugam said the WTO is trying to understand how trade policy can play a role in tackling the global plastics challenge.
“Trade flows in plastics pollution, whether it is trade in plastic itself, or trade in goods incorporating plastic, such as cars, are made of 50 per cent plastic,” he noted. “So we face a major challenge to monitor exact trade flows from plastics.”
Plastics dialogue emphasizes need for international collaboration, cooperation (WTO)
The three co-coordinators of the IDP - Ecuador, China and Australia - drew attention to the IDP Ministerial Statement announced in December 2021 and the launch of three workstreams in March 2022 as a first step towards implementing the Statement. The co-coordinators reiterated the severity and urgency of the global plastics pollution problem and highlighted recent major developments, notably the launch of negotiations on a global agreement on plastics pollution, which sets an ambitious goal of reaching a binding agreement by 2024. They emphasised the need for WTO members to consider the IDP’s role in global actions and how trade tools can unlock barriers, facilitate trade in environmental goods and services and promote technology transfer.
Will the EU’s carbon import tax hurt poor nations? (Thomson Reuters Foundation)
Battling to halve its planet-warming emissions by 2030, the European Union plans to impose the world’s first carbon border tax on companies that import carbon-intensive products such as cement, steel and fertiliser. The border levy would protect EU companies that produce greener products from their competitors abroad whose manufacturers can produce at a lower cost in part because they are not charged for their carbon emissions. But critics say putting a carbon price on imports could have unintended consequences, such as crippling trade with less-developed economies in Africa and in turn stifling their own ability to cut emissions.
new OECD report, “Financing SMEs and Entrepreneurs 2022: An OECD Scoreboard” shows that outstanding SME loans increased significantly during the first year of the pandemic. The median stock of SME loans increased by 4.9%, the highest upturn registered since the OECD Scoreboard was created 10 years ago1. This was underpinned by a strong increase in government-provided loan guarantees (up 110% y-o-y in 2020), debt moratoria, as well as direct lending to SMEs (up by 17% y-o-y in 2020).
The report says it is vital that government recovery packages continue to provide targeted support to viable SMEs and entrepreneurs in need. The war in Ukraine, and the resulting humanitarian and economic crisis, reinforce the importance of support and access to financing for SMEs and entrepreneurs.
SMEs make a major contribution to the labour market and have the potential to play a key role in driving the green transition and in ensuring energy security. The report says they need access to a broader range of financial tools and instruments to strengthen their resilience.
Related News
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Local trade news
Trade Statistics for February 2022 (South African Revenue Service)
The South African Revenue Service (SARS) today releases trade statistics for February 2022 recording a preliminary trade balance surplus of R10.60 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN). The year-to-date (01 January to 28 February 2022) preliminary trade balance surplus of R14.67 billion is a deterioration from the R45.21 billion trade balance surplus for the comparable period in 2021. Exports increased by 7.3% year-on-year whilst imports increased by 31.4% over the same period. The R10.60 billion preliminary trade balance surplus for February 2022 is attributable to exports of R141.15 billion and imports of R130.55 billion. Exports increased by R10.51 billion (8.0%) between January and February 2022 and imports increased by R3.98 billion (3.1%) over the same period.
White Paper on rail lauded as SA loses at least 1% of GDP to Transnet inefficiency (Engineering News)
The South African coal, chrome, iron-ore and manganese mining sectors lost between R39-billion and R50-billion in export earnings last year as Transnet struggled with capacity to rail bigger volumes of these commodities to ports, says economists.co.za chief economist Mike Schussler. “To put this into context, this is about 1% of the country’s gross domestic product, and it would have added about 12.5% to the whole mining sector.”
More fruits will be exported to China: S. African growers association (Xinhua)
The Citrus Growers’ Association of Southern Africa CEO Justin Chadwick expects local lemon producers to export more tonnes of lemon throughout this year to China after having exported 225 tonnes to the market since the start of the year. “To date, only (225 tonnes) of lemons have been exported to China; it is very early in the season and we expect considerably more to go as the season ramps up,” he told Xinhua. South Africa, a leading lemon producer in Africa, now has the capability of exporting lemons due to a revised lemon protocol. According to the previous agreement, signed bilaterally in 2006, all citrus exports from South Africa were required to undergo cold treatment for 24 days at or below 0.6 degrees Celsius to prevent fruit flies and false codling moths. Following the implementation of the new agreement, lemons will have to be chilled for a minimum of 18 days at a temperature of 3 degrees Celsius.
Kingdom of Lesotho: Staff Concluding Statement of the 2022 Article IV Mission (IMF)
Lesotho has been hit simultaneously by the pandemic, declining Southern African Customs Union (SACU) transfers, and climate shocks since 2020. The government’s swift response to the pandemic—through containment, social, and economic mitigation measures, and vaccination—has been notable. Nevertheless, the resulting fiscal and external pressures have once again exposed the fragility of the current economic model and underlined the urgent need to diversify the economy and consolidate public finances to preserve fiscal and debt sustainability. Alongside this, broad-ranging structural reforms will be vital to support a durable, resilient post-pandemic recovery built on green, job-rich, sustainable, and inclusive private sector-led growth. In the run-up to the general election, the government should continue to initiate policies and institutional reforms that are less constrained by the political economy.
Harare prioritises economic recovery from COVID-19 in its stabilisation plan (UNECA)
The Mayor of Harare, His Worship Councillor Stewart Mutizwa, has underscored economic recovery from COVID-19 as a priority for the city’s stabilisation plan in a meeting with a delegation from the United Nations Economic Commission for Africa (ECA), led by Ms. Edlam Yemeru, acting Director of ECA’s Gender, Poverty and Social Policy Division, with both parties agreeing to their deepen collaboration. Since 2020, ECA has provided assistance to Harare for the formulation of its Economic Recovery and Resilience plan in light of the COVID-19 pandemic. This is expected to be adopted by the city’s executive leadership (council) as an input to the city’s stabilisation plan, which will operationalise priority action areas.
Zimra implements strategic plan (The Herald)
The Zimbabwe Revenue Authority is in the process of implementing various projects that are part of its five-year strategy to transform service delivery, ease of doing business as well as plugging revenue leakages and modernising the agency. The projects, that have been aligned to the National Development Strategy 1, began being implemented last year and will run until 2025 with funding from the $6,1 billion received from the Treasury. Speaking at a media engagement breakfast meeting yesterday, Zimra director of research, strategy and modernisation, Mr Joey Shumbamhini, said the projects would contribute towards the NDS1 national priority on economic growth and national stability.
President Mnangagwa calls for greater trade ties with Rwanda (The New Times)
Zimbabwean President Emmerson Dambudzo Mnangagwa has stressed that the trade and investment partnership between Rwanda and Zimbabwe must yield increased trade volume between both countries. Mnangagwa made the observation on Monday, March 28 while opening the second edition of Zimbabwe-Rwanda Trade and Investment conference in Harare.
“The conference gives impetus to our quest to strengthen our commercial ties and accelerate the implementation of mutual programmes and projects towards improving the standards and quality of life of the people of Rwanda and Zimbabwe,” President Mnangagwa told both delegations. He added, “This timely visit to Zimbabwe demonstrates the focus, determination and commitment to the prime objectives we set for ourselves with regards to broadening the trade and investment partnerships between our two countries.”
Global economists cut Kenya’s growth on war, debt costs (Business Daily)
Global economists have further trimmed Kenya’s growth outlook for 2022, largely citing reduced expenditure on infrastructure projects amid rising external debt costs and price pressures from Russian war on Ukraine. A consensus growth outlook from 14 world-leading banks, consultancies and think tanks shows economic activity will likely expand 5.1 percent this year, a drop of 0.3 percentage points from 5.4 percent at the beginning of the year. “The outlook is clouded by the country’s reliance on foreign capital for infrastructure and a rise in external debt,” analysts at Barcelona-based FocusEconomics wrote in their April outlook report on Kenya.
Kenya unveils $399m internet cable hoped to unlock digital economy (The East African)
Thirteen years since Kenya welcomed its first ever fibre optic cable, the country has now unveiled a sixth submarine internet cable that promises to offer higher speeds, lower latency and broader bandwidth. The launch of the Pakistan and East Africa Connecting Europe (Peace) cable on Tuesday comes at a time when the country’s internet economy is rapidly growing, thanks to digital transformation acceleration occasioned by the Covid-19 pandemic. As demand rises for cloud storage, heavy internet content streaming, e-commerce platforms, e-learning apps, telehealth systems, fintech innovation and online businesses, the new cable is expected to offer additional broadband to the national fibre backbone network. The $399.9 million cable connects Africa to France and Pakistan through the Europe-Asia route, providing a direct connectivity to Asia which is expected to reduce communication delays between Africa and Asia.
Horticulture earnings drop Sh7bn in Jan (Business Daily)
Horticulture earnings dropped by Sh7.1 billion in January this year as the volume of produce exported also declined. Data from the Kenya National Bureau of Statistics (KNBS) indicates the export value of the produce declined to Sh8.1 billion in the month under review from Sh15.2 billion a year earlier. All segments of horticulture exports –flowers, vegetables, and fruits recorded a decline both in value and volumes.
The horticulture sector had been enjoying good earnings during the Covid-19 period. For instance, in 2019, income from the export of fresh produce declined to Sh144 but picked up during the first year of the coronavirus outbreak to Sh150 billion.
Earnings from horticulture exports hit a historic high last year at Sh158 billion to remain the leading foreign exchange earner in the last two years by staying ahead of tea and tourism.
Traders commit to fight illicit trade (The Observer)
Key stakeholders in the trading and manufacturing industry together with law enforcement agencies and government bodies in charge of trading activities have vowed to strengthen their efforts of fighting illicit and counterfeit products on the Ugandan market.
According to Joseph Lubulwa, UBL brand protection manager, they have partnered with the private sector and government agencies to conduct nationwide sensitization engagements to inform the public and relevant authorities on the dangers of illicit trade and how to spot the difference between genuine and counterfeit products. He said that in 2021, UBL seized illicit alcohol worth Shs 375 million and between 2019 and 2020, government lost Shs 1.9 trillion in revenue from the sale of illicit alcohol alone.
“Counterfeits take 64.5 per cent of the alcohol market share, leaving the remaining smaller percentage to genuine dealers. We, therefore, appeal to lawmakers to enable tougher penalties and timely prosecution of offenders,” Lubulwa said.
Rwanda’s export revenues grow by 8.8 per cent (The New Times)
Rwanda recorded strong growth in export earnings in 2021 thanks to the rebound of business activity from the Covid-19 pandemic as well as the rise in global commodity prices and improvement of trade in the region. The central bank said on Tuesday that last year the country generated $1,531 million from exports, a rise of 8.8 per cent from $1,407.5 million in 2020 when export revenues contracted. Merchandise exports gained the most as they raked in $1,167.8 million for the country compared to $761.3 million in 2020, central bank governor, John Rwangombwa, disclosed as he presented the monetary policy and financial stability report. The report also highlights the status of the economy.
Rwanda launches technology centre to drive Africa innovation (WEF)
For the last 28 years, Rwanda has deliberately explored every avenue available to deliver national transformation through economic growth. Technology and innovation have been at the heart of our transformation. We expect this to become an even greater driver of our economic development in the coming years.
With the advent of the Fourth Industrial Revolution and the rapid innovations witnessed during the COVID-19 pandemic, there is an increased urgency to develop digital and technological capacities to build more resilient systems for a healthier society and more sustainable economy. This is as true in Africa and the developing world as it is anywhere.
African trade
DR Congo joins East Africa trade bloc: Who gains? (BBC News)
The Democratic Republic of Congo has joined the East African Community (EAC) as its seventh member, massively expanding the territory of the trade bloc, giving it access to the Atlantic Ocean and greatly increasing the numbers of French speakers in what began as a club of former British colonies.
DR Congo applied for membership in 2019, hoping to improve trade and political ties with its East African neighbours. It will allow Congolese citizens to travel freely to the other countries and trade will become much quicker, simpler and cheaper, which should benefit businesses and consumers in all countries. The country shares borders with all EAC members except Kenya, and hopes to attract more investors from the region.
Dr Abel Kinyondo, an economist at the University of Dar es Salaam, believes that DR Congo’s inclusion will boost the bloc’s bargaining power globally. “Numbers matter in international trade - the addition of DRC’s economy to the community implies increased purchasing power,” he said.
How Congo’s EAC entry will affect regional cargo transport routes (Business Daily)
The admission of the DRC into the East African Community is likely to shift a share of cargo from the northern corridor to the central highway. With DRC’s entry, the focus will now be between the Port of Mombasa and that of Dar es Salaam as truckers weigh options on which route to use in ferrying goods to the vast DRC state. The central corridor, which is 1,300km long, begins at the Port of Dar es Salaam and serves Tanzania, Zambia, Rwanda, Burundi, Uganda and Eastern DRC. On the other hand, the northern corridor, which is 1,700km long, commences from the Port of Mombasa and serves Kenya, Uganda, Rwanda, Burundi and Eastern DRC.
Dennis Ombok, former chief executive officer of the Kenya Transporters Association, said there are many factors that will determine the route that truckers would use. “Truckers will also be keen on incentives at the ports such as free storage period and lower charges to decide whether to use the port of Dar es Salaam or Mombasa,” he said.
Congolese cautiously optimistic as DRC joins East African bloc (The East African)
Importers eye wagon ownership in bid to reduce transport costs (Business Daily)
East African importers want to be allowed to own rail wagons to reduce transport costs which have been on the rise. Private sector players called on relevant authorities to work on modalities to open up rail transport as is the case in developed countries such as South Africa, Brazil and a number of European countries, to allow them own wagons as a way of bringing down transport costs. The traders said investing in freight wagons will increase cargo-handling capacity on rail and reduce on the expensive road transport. Truckers have already announced an increased cost of ferrying cargo by between 5 per cent and 10 per cent as a result of high fuel prices. “Traders always seek convenient, cheap and safe ways of transportation. With East Africa developing rail systems, we can own wagons to reduce cost of transportation. We will then buy wagons instead of trucks to save due to economies of scale,” said Gilbert Lang’at, Shippers Council of Eastern Africa (SCEA) chief executive.
Executive Secretary Statement SACU Book Launch - 29 March 2022 (pdf, SACU)
As you will note from the book, industrialisation is a central objective for deepening regional economic integration through the development of regional value chains. Thus, regional industrialisation is seen as the main vehicle through which the SACU region can transform its economies to generate sustainable growth, employment and reduce poverty. The aim is to develop regional value chains and position the region to tap into the market access opportunities presented by the African Continental Free Trade Area and beyond.
Another important focus area towards deeper integration has been the implementation of the SACU Trade Facilitation Programme that is anchored on the Customs Modernisation Programme (CMP). The main objective of the CMP is to enhance the efficiency of Customs operations. The SACU Trade Facilitation Programme has evolved over the years and yielded positive results which have partly contributed to an increase in intra-SACU trade from R63 billion in 2004 to R192 billion in 2018.
I also wish to thank Ms. Trudi Hartzenberg, Executive Director of TRALAC, for her role a peer reviewer of the Book and for graciously agreeing to give us a review of the Book this morning. Trudi, you are an authority on trade and regional integration matter, and we are so pleased to have benefited from her expertise in the production of our book.
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Sadc member states urged to address food insecurity through intra regional trade (sardc.net)
SADC Member States have been urged to address food and nutrition insecurity in the region through intra-regional trade, and to prepare contingency plans showing areas of surplus and shortages, after an uneven season of generally low rainfall. This is the recommendation of the SADC Council of Ministers who met on 18-19 March in Lilongwe, Malawi to review the implementation of programmes aimed at promoting and deepening regional integration, cooperation and economic development.
“In relation to food and nutrition security, Council noted that most Member States received low rainfall that will affect crop production in the region, and urged Member States to prepare contingency plans, taking into account areas with surplus and shortages of food production and through intra-regional trade, to deal with potential food shortages, and be able to assist food and nutrition insecure people,” reads part of the communiqué released soon after the SADC Council.
Experts to explore export opportunities for Central African countries (UNECA)
With the advent of the African Continental Free Trade Area (AfCFTA), Central African governments adopted AfCFTA national strategies with the support of ECA and its partners. These countries have also developed national industrialization and economic diversification plans (PDIDE) and industrialization strategies (PDIs), in accordance with the Douala Consensus. In 2020, Cameroon was the first country in the sub-region to finalize its strategy with the support of the ECA, but also to review its Master Plan for Industrialization (PDI, 2015), with the ambition of becoming “the factory of the new industrial Africa”. In an effort to align trade and industrial strategies, the Government of Cameroon had requested the expertise of the ECA, which partnered with researchers from Trade Advisory, an entity attached to North-West University (NWU), which has unique expertise in the Decision Support Model (DSM). The results of the DSM approach applied in Cameroon have made it possible to identify African markets where Cameroon can sell the products identified in its Master Plan for Industrialization (PDI) and its trade ambitions highlighted by the AfCFTA strategy. The exercise highlighted the integrated approach to harnessing the trade potential of Cameroon.
Africa has prime opportunity to provide commodities usually supplied by Russia (Engineering News)
As Western Europe accelerates a structural transition away from Russian energy dependence, Africa will play a salient role in filling this void, says Oxford Economics Africa (OEA). During a webinar on March 29, the research company unpacked how a more pressing shift towards renewable energy and a reduction in Russian hydrocarbon dependence will increase demand for African renewable and non-renewable resources.
European Commission president Ursula von der Leyen on March 8 proclaimed that Europe must become independent from Russian oil, coal and gas. “We simply cannot rely on a supplier who explicitly threatens us. We need to act now to mitigate the impact of rising energy prices, diversify our gas supply for next winter and accelerate the clean energy transition. “The quicker we switch to renewables and hydrogen, the quicker we will be truly independent and master our energy system.”
Green Investments, the New Black for Sustainable Development in Africa (IDN InDepthNews)
Less than ten years to the deadline to meet Sustainable Development Goals (SDGs), Africa is at development cross roads. The big question is how can Africa achieve inclusive and sustainable development to meet the twin agendas; 2030 Agenda and Agenda 2063? Research assessments indicate that Africa is off the mark on some Sustainable Development Goals but has made great progress on others such as reducing maternal and child deaths and a decrease in the rates of malaria, tuberculosis and HIV. Yet the African continent needs to escalate progress on halving poverty and hunger, increasing access to health care and tackling high unemployment on the back of the challenges of food insecurity, growing debt and rapid population growth.
Global economy news
WTO releases update to statistical profiles on trade in value-added for 66 economies (WTO)
The profiles draw from the OECD’s Trade in Value-Added (TiVA) database and provide an update to the profiles published in 2019. They highlight the cross-border exchange of parts and components taking place within global value chains (GVCs), affirming that economies rely on imports from partners in order to export. An explanatory note provides guidance on the definitions and interpretation of the indicators in the profiles. The full set of profiles can be found here.
New WTO statistics dashboard provides graphical presentation of trade and tariff data (WTO)
The WTO Stats Dashboard allows users to filter and change displayed information. Depending on the graph, data can be explored by reporting economy, trade flow, period (annual, quarterly, monthly), trade category, and product or sector breakdown. Data sets available on the WTO Stats Portal are presented visually in the new tool via three distinct dashboards. The Merchandise Trade Dashboard provides a global overview of merchandise trade values via a global map, as well as regional breakdown and trends over time that can be explored by reporting economy and time period. This dashboard also presents merchandise trade indices in graphical form.
General Council endorses final decision on Bali tariff rate quota underfill mechanism (WTO)
The chair of the General Council, Ambassador Didier Chambovey of Switzerland, welcomed the achievement: “I would like to congratulate all members for their pragmatism and constructive spirit, which facilitated arriving at the solution. This is the spirit that will characterize our work, and I’m grateful to all for this positive action.”
Tariff rate quotas (TRQs) allow imports of certain agricultural goods to be imported at lower duties up to a specified amount, with increased duties applied to amounts over the limit. The mechanism was agreed as a means of allowing exporters some access to other countries’ markets when the normal tariffs on imports are high. The 2013 Understanding seeks to address cases where importing members’ quotas are persistently underfilled.
The development path followed by a country prior to graduation from the least developed country category has significant implications with regard to the challenges to be faced after graduation. The current conceptualization of a smooth transition strategy primarily aims to create a short-term post-graduation “soft landing” and ease concerns with regard to preparation for engaging in economic relations as a non-least developed country. Therefore, the concept currently does not have a focus on preparing countries for graduation with momentum.
UNCTAD has maintained that the post-graduation success of a country significantly depends on the foundations built prior to graduation. Graduating countries need a new strategy, one that prepares them for the challenges ahead by linking the graduation process with the development of productive capacities and sustainable development. UNCTAD has proposed an alternative policy framework to help refocus the objectives and strategic direction of graduation strategies, as well as a new time frame for implementation.
Youth and innovation were the highlight of the Forum’s closing ceremony, as the three top winners of the ‘Arab Rally’ for Entrepreneurship and Innovation were announced. The entrepreneurship competition for university students from the Arab Region was taking place on the sidelines of WEIF 2022.
The closing day of the WEIF 2022 saw the participants, partners and co-sponsors, including the UN Industrial Development Organization (UNIDO)-ITPO, as well as the Arab League, Arab Chambers of Commerce, Bahrain Chamber of Commerce & Industry, and the Government of the United Arab Emirates (UAE), express their strong commitment to achieving the 17 Global Goals outlined in the 2030 Agenda for Sustainable Development. Further, the UAE Declaration stated: “We recognize that entrepreneurship and innovation are the driving force to the creation of jobs, spurring of economic growth and the realization of social gains; We recommend that all efforts are focused towards achieving sustainable development through entrepreneurship and innovation that can be accomplished via strong, inclusive, sustainable and resilient economic growth.”
Factories of the future call for responsible scaling that prioritizes the planet and people (WEF)
The World Economic Forum announces today the addition of 13 new sites to its Global Lighthouse Network, a community of 103 world-leading manufacturing facilities and value chains using Fourth Industrial Revolution technologies to increase operational performance and environmental sustainability. Local manufacturing and supply chain resilience are crucial in the current geopolitical context, as organizations strive to engage their workforces and sustain operations amid international unrest and economic headwinds. There are also new pressures to maintain sustainability commitments and accelerate the transition towards renewable energy, while addressing more immediate energy market disruptions.
Renewable-energy transition ‘only true path to energy security’ (Engineering News)
The renewable energy transition “is the only true path to energy security”, United Nations secretary-general António Guterres has asserted, adding that the current energy crisis, precipitated by Russia’s invasion of Ukraine, underlined the need to accelerate rather than slow the transition. In a recorded address to the 2022 edition of the Berlin Energy Transition Dialogue (BETD), Guterres warned that the world was not on track to achieve the goal of carbon neutrality by mid-century, or limiting the global temperature rise to 1.5 °C. “Last year, global energy-related carbon dioxide emissions grew by 6% when they should be falling. In fact, with current national commitments, emissions are projected to increase by almost 14% this decade,” he said, describing the global energy mix as broken.
Wealthy Nations, Corporate Titans’ False Promises of Fair COVID-19 Recovery Exposed, How Africa’s Inequality Deepened (Inter Press Service)
Even as COVID-19 brought Africa’s already fragile health care and economic systems to the brink, wealthy states colluded with corporate giants to dupe people with empty slogans and false promises of a fair recovery from the ongoing health pandemic, a newly released report by Amnesty International report finds. The global human rights organization says at the heart of the report are revelations of how “global leaders peddled false promises of a fair recovery from COVID-19 to address deep-seated inequalities, despite only 8 % of Africa’s 1.2 billion people being fully vaccinated by the end of 2021.” Amnesty International Report 2021/22: The State of the World’s Human Rights finds that wealthy nations, alongside corporate titans, have driven deeper global inequality. As a result, African countries are worse off and left struggling to recover from the pandemic against a backdrop of significant levels of inequality.
WTO issues inventory of COVID-19 information resources (WTO)
The inventory currently contains 70 information resources managed by international organizations, non-governmental organizations, academics and the private sector. It covers a variety of topics, such as vaccination, production of vaccines, government procurement, cases, diagnostics, therapeutics and intellectual property-related issues.
Rising energy prices will make us poorer but we don’t blame climate policies, say consumers (WEF)
Wherever you live in the world, energy prices are surging upwards. But a new global survey shows that people don’t blame climate policies for rising energy costs and strongly support moves to end the use of fossil fuels. A survey of over 22,500 adults in 30 countries, conducted by Ipsos for the World Economic Forum, found that, on average, more than half of consumers expect rising energy costs to significantly reduce their spending power in 2022.
Energy consumption and production contribute to two-thirds of global emissions, and 81% of the global energy system is still based on fossil fuels, the same percentage as 30 years ago. Plus, improvements in the energy intensity of the global economy (the amount of energy used per unit of economic activity) are slowing. In 2018 energy intensity improved by 1.2%, the slowest rate since 2010. Effective policies, private-sector action and public-private cooperation are needed to create a more inclusive, sustainable, affordable and secure global energy system.
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‘Raw material export detrimental to growth’ (The Herald)
PRESIDENT Mnangagwa has challenged industrialists to enhance value addition and diversify exports to help end Africa’s unsustainable reliance on primarily exporting raw materials much to the detriment of the continent’s growth prospects. Officially opening the Zimbabwe-Rwanda Trade and Investment Conference at a Harare hotel yesterday, the President said the four-day indaba between the two countries should result in the crafting of models that grow businesses.
“The outcomes and recommendations of the conference deliberations must continue to inculcate a culture of progressive collaboration, production, and productivity. “In this regard, I call upon our industrialists to enhance value addition and diversify our export mix through competitive and efficient value chains. In doing so, Africa will put to an end the perennial and unfortunate challenge of exporting primarily raw commodities from its sectors of the economy.
Flower exporters eye rosier times with new markets (The Standard)
Kenya’s flower industry is eyeing an expanded export market as it seeks to grow revenues and shake off the Covid-19 pandemic shocks. The Kenyan Flower Council (KFC) said it had identified several new markets for local flowers and other fresh produce. The industry lobby said while the need to diversify has always been there, the pandemic made it more urgent. With Kenya’s produce largely dependent on the European market, it meant that business was largely dictated by the closure and reopening of economies in the region. About 70 per cent of Kenyan flowers are sold in Europe, with most of them going through the flower auction in the Netherlands.
Kenya’s Indian Ocean oil dream fades as test drilling gives negative results (The East African)
Mlima-1, the well in the Lamu Basin, off Kenya’s Indian Ocean coast recently touted as the country’s first offshore oil strike, is commercially unviable. Results of the exploration released by Italian energy group Eni, show that the well proved nonviable and was to be “plugged” and “abandoned,” after it failed to hit commercial oil reserves. The result has dealt a blow to Kenya’s hopes of being a commercial offshore oil-producing country. While production was years off even in the event of a big oil discovery, the latest results have killed Kenya’s dreams of exploiting what is believed to be huge offshore oil and gas deposits for now.
Car importers lose in pushing KRA to harmonise eight-year age limit (Business Daily)
The High Court has dismissed a case by car importers seeking to compel Kenya Revenue Authority (KRA) and Kenya Bureau of Standards to harmonise the computation of eight-year age limit rule used for the importation of second hand vehicles. Car Importers Association of Kenya, which brings together 73 car dealers, had protested that there was disharmony in the method used by Kebs and that of KRA, causing its members to incur huge economic losses while paying duty and in other instances, rejection of some vehicles into the Kenyan market. The court heard that there was disparity given that KRA starts counting the eight years at the beginning of the year when the car was registered, disadvantaging cars listed in months after January. But Kebs hinged its count on the month when the car was registered.
Tanzania urges African countries to practice sustainable fisheries amid climate change crisis (News Ghana)
Tanzanian authorities on Monday urged African countries to join forces toward the management of sustainable fisheries in the wake of impacts caused by climate change. Abdallah Ulega, the deputy minister for Livestock and Fisheries, said there was a need for African countries to collaborate in brainstorming strategies for sustainable fisheries in the wake of climate change that is posing a threat to the fisheries industry. “By joining forces, African countries will be able to fight illegal fishing and overfishing and combat pollution that is taking a heavy toll on the fisheries industry,” Ulega told an African Union consultative meeting on fisheries management in the commercial capital of Dar es Salaam. He told the fisheries experts to share knowledge on how best to sustainably manage the fisheries industry.
Egypt to launch energy transition in Africa initiative at COP27 (ESI Africa)
Egypt, the hosts of COP27 (United Nations Climate Change Conference), will launch an initiative to develop the energy transition in Africa at the yearly gathering. Petroleum Minister Tareq el Mulla said the initiative is being prepared in cooperation with the African Union (AU) and African energy ministers. This was announced at a ministerial discussion session held under the theme “The International Energy Agency Community”, attended by energy ministers from 44 countries. The session was held on the sidelines of the International Energy Agency’s (IEA) 2022 Ministerial Meeting. In a statement, the Petroleum Ministry said that Mulla, in his word at the meeting, stressed the necessity of cooperation and integration to create the appropriate conditions for the African continent to achieve the energy transition in a balanced way that takes into consideration the continent’s requirements and its economic and living conditions.
Mulla also underlined the rest of the world’s role in providing the necessary financing and technologies to the African continent in order to support it in obtaining clean energy with low carbon emissions.
Russia says sanctions derailing trade with Kenya, refutes claims Moscow to blame for rising commodity prices (Capital News)
The Russian Ambassador to Kenya, Dmitry Maksimychev, has denied reports Ruassia’s invasion of Ukraine is to blame for rising food prices in Africa blaming sanction imposed by western nations for the rise in commodity prices.
Speaking to Capital in the Morning on Monday, Amb. Maksimychev pointed out that the sanctions are preventing Russia from selling food products to African countries including Kenya. The Russian envoy to Kenya said that the sanctions had dealt a big blow to the financial system that made it possible for the two countries to trade. He added that the system was affecting both countries pointing out that the system recently shut down making it impossible for the two countries to make payments for products.
The Mano River Union Secretariat will receive a $4.2 million grant from the African Development Bank through the Transition Support Facility, to boost the Union’s commitment to support and empower women traders via the Bank’s Building Inclusive Business Ecosystems for Stabilization and Transformation in the Mano River Union project. “This project is an innovation that delivers upon the Bank’s gender mainstreaming commitments and aligns with our Gender Strategy – specifically on enhancing access to finance and technical assistance to women entrepreneurs,” said Amel Hamza, the Bank’s Acting Director for Gender, Women and Civil Society. The grant from the African Development Bank will boost business formalization among women traders and fuel new programs designed for gender-responsive, climate-resilient, and low-carbon cross-border value chains.
Logistical Improvements: the Backbone of Angolan Trade (Energy Capital & Power)
Demand for oil and gas is rapidly increasing, largely due to supply disruptions in international markets owing to the Russia-Ukraine conflict. Meanwhile, Africa’s domestic demand also continues to increase as the wider population and economies grow. Angola, as the second largest oil producer in sub-Saharan Africa, producing approximately 1.1 million barrels of oil in 2021, stands to benefit from this heightened regional and international demand. However, in order to capitalize on demand increases and enhance intra- and inter-African exports, improvements across the logistics and infrastructure sectors are required. Representing all aspects of the Angolan supply chain, the logistics industry is not only a vital but sector-advancing industry in resource rich countries such as Angola. While the country’s resources offer the potential to meet both domestic and international demand, without adequate logistical improvements and infrastructure across the energy sector, this potential will remain untapped. Accordingly, the government has prioritized logistics improvement across its port, transportation networks, and internal procedures.
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The Democratic Republic of the Congo joins EAC as its 7th Member (EAC)
The Democratic Republic of the Congo (DRC) has today joined the East African Community (EAC) becoming its 7th Partner State. The Summit of EAC Heads of State at their 19th Ordinary Summit held on Tuesday, 29th March, 2022 admitted DRC following recommendation by the Council of Ministers. The Chairperson of the Summit, H.E Uhuru Kenyatta, who is also Kenya’s President, informed the meeting that DRC had met all the set criteria for admission as provided for in the Treaty for the establishment of the EAC.
“Admitting DRC into EAC is historic for our Community and the African continent at large. It demonstrates the agility of the Community to expand beyond its socio-cultural boundaries to new people and trade-centered partnerships and collaboration, thus increasing trade and investment opportunities for the citizens,” added the Chair.
Regional presidents welcome DR Congo into EAC (The New Times)
“The EAC now spans from the Indian Ocean to the Atlantic Ocean making the region competitive and easy to access the larger African Continental Free Trade Area (AfCFTA).” With lower tariffs on goods and the removal of trading restrictions among partner states, he added, we anticipate that goods and services will move more freely.
India-Africa Trade Council hails borders’ reopening; says ‘decision will rekindle our investment spirit’ (Myjoyonline)
The Chief Chancellor of the Indian Africa Trade Council (IATC) in charge of West Africa, Dr. James Rajamani has praised the government for opening the country’s land borders.
The closure of Ghana’s borders on Saturday 21 March 2020 by Akufo-Addo affected trading between Ghana and her three closest neighbours – Togo (to the east), Burkina Faso (to the north) and Côte d’Ivoire (to the west of the country), and the other countries in the region.”As from tomorrow, Monday, 28th March, all land and sea borders will be opened. Fully vaccinated travelers will be allowed entry through the land and sea borders without a negative PCR test result from the country of origin. Citizens and foreign residents in Ghana, who are not fully vaccinated, will have to produce a negative 48-hour PCR test result, and will be offered vaccination on arrival,” he said.
Financial inclusion of women key to building economic resilience (The Star, Kenya)
The devastating impact of the Covid-19 pandemic on global supply chains and business, in general, has pushed both the private and public sectors back to the drawing board to fix the broken links. While issues around the shortage of manufacturing components, systems, lack of skills, affordability of labor and transport costs as well as access to finance and security could be among key topics to prop up in closed-door meetings, sadly gender inclusivity will most unlikely feature. The inclusion of women in building resilience to future shocks only features widely in research papers as a game-changing strategy, but implementation is yet to be realised in earnest.
Traction and Implementation of the Nairobi Declaration for Strengthened Disaster Risk Reduction in Africa (African Union)
Africa needs to accelerate the commitments of the Nairobi Declaration to enhance disaster risk management in the Continent. This was the key rhetoric coming from the just concluded 17th Session of the Africa Working Group for Disaster Risk Reduction (AWG-DRR). The three day event took place in Maputo, Mozambique 16-18 March 2022. Delegates discussed ways to accelerate action towards implementing the Africa Programme of Action for the implementation of Sendai Framework for Disaster Risk Reduction 2015-2030 in Africa (PoA). With 2030 fast approaching, the Matrix for the PoA’s implementation was also critically discussed, to enhance traction of actions by member states and regional economic communities (RECs). The Nairobi Declaration was adopted at the last Africa Regional Platform for Disaster Risk Reduction (AfRP) held in Kenya in November 2021.
Competition watchdog mulls investigating rising prices of goods (Business Daily)
The competition watchdog says it may conduct a survey to ascertain the current increase in the price of basic commodities as consumers grapple with the high cost of goods. The rising prices of a wide range of goods including eggs, milk, cooking oil, fuel, and cooking gas has been blamed on several factors including shortages, high production costs, and supply chain disruption in the wake of Russia’s invasion of Ukraine. The Competition Authority of Kenya (CAK) director for policy Adano Wario said the regulator will seek to find if there are any unjustified price increases that could be hurting consumers.
The official said in spite of the global shocks that have seen prices of most commodities surge, the possibility of some players engaging in price gouging to cash in on the prevailing economic situations in the country could not be ruled out.
From subsistence to disruptive innovation: Africa, the Fourth Industrial Revolution, and the future of jobs (Brookings)
Improving employment opportunities in Africa is already a major development policy issue, and given the number of young Africans expected to enter the job market over the next two decades, it will undoubtedly remain a concern. Academic research and think tank reports tend to herald the technologies emerging in the Fourth Industrial Revolution (4IR; Schwab 2016) as game changers that can accelerate the economic transformation of developing countries, leading to the creation of wage jobs in expanding, higher-productivity sectors. African governments are being advised to organize and invest for this revolution by building labor force skills. Yet how realistic are these predictions for Africa? And what might be the consequences for inclusive development if Africans follow this advice?
Moreover, one central question has so far been ignored in the literature: Just how likely are African producers to adopt the new technology? Although economic theory has long argued that if they adopt the technology of developed countries, less developed countries can grow faster and expedite income convergence across countries. Yet in Africa adoption of productive technology has been slow, because the costs can be high and because many technologies do not sufficiently address the current barriers to increasing productivity and profitability that confront African producers. This is especially true in the informal sector (household farms and firms), where the majority of Africans work today, and are likely to continue to do so.
The African Union Commission to Scale Up Quality and Sustainable Investment in Africa (African Union)
Over the past few years, both domestic and foreign direct investment (FDI) have come to play an increasingly important role in the economic development of many countries. Moreover, it is now widely recognized that FDI can offer important advantages for the recipient economies. In addition to capital inflows, FDI can lead to transfer of technology and know-how, improve access to international markets, and spur competition. The African Union Commission, Department of Economic Development, Trade, Industry, Mining (ETIM) organized a Technical Workshop to develop a Comprehensive Strategy for the Mobilization Quality and sustainable Investment into Africa from 22 to 25 March 2022 in Cairo, Egypt. The workshop was organized with the aim of developing a comprehensive Strategy for the Mobilization of quality and sustainable Investment in Africa which will then be used by the AU Member States to attract both Domestic and FDIs into their respective countries.
On behalf of H.E Albert Muchanga, Commissioner for ETIM, Mr. Hussein Hassan, Head of Industry and Mining division, conveyed a welcoming statement to participants and highlighted the impact of domestic investment and FDI in African economies. He said “Many countries are stepping up their efforts to attract FDI flows in their countries through, liberalization of FDI entry requirements such as improving policy credibility, transparency of the legal and regulatory framework, property rights, transaction costs, risks and removing other impediments to attracting investments. He added that the African Union Commission, in close collaboration with the African Governments, the African Investment Promotion Agencies, and other relevant stakeholders has embarked on developing a continental Strategy to mobilize Quality and Sustainable Investment in Africa.
UK backs Africa’s ambitious continental free trade initiative (GOV.UK)
International Trade Secretary Anne-Marie Trevelyan has announced a new UK programme to support the implementation of the African Continental Free Trade Area (AfCFTA) trading bloc. Through the AfCFTA Support Programme, the Foreign Commonwealth and Development Office (FCDO) will provide up to £35m to provide trade facilitation and trade policy support to the AfCFTA Secretariat and Member States through TradeMark East Africa (TMEA), Overseas Development Institute (ODI) and other regional partners. Announcement of the programme comes as AfCFTA Secretariat Secretary General Wamkele Mene visits London to discuss how the UK can continue its work as a strategic partner to the AfCFTA.
International Trade Secretary Anne-Marie Trevelyan said: As an independent free trading nation, the UK strongly supports the AfCFTA – the largest free trade area in the world. We’re keen to see continued momentum on outstanding negotiations, and on practical implementation of the
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Blog: Achieving growth with structural change in LDCs: Priorities for the Doha Programme of Action (The Commonwealth)
The leaders of the world’s 46 least developed countries (LDCs) are meeting at the United Nations Headquarters in New York on March 17th, 2022 to adopt the Doha Programme of Action (DPoA), setting a renewed agenda for development in LDCs. Practical and innovative ways to accelerate inclusive economic transformation should be at the forefront of this agenda.
Despite progressively greater emphasis on building productive capacity and enabling economic diversification in the DPoA’s immediate predecessors, most LDCs made only limited headway in transforming the structure of their economies. The devastating impacts of COVID-19 on production, trade and investment in LDCs, and its wider economic and social effects, have stalled progress even further. (The two most recent programmes of action for LDCs preceding the DPoA were the Brussels Programme of Action (2000-2010) and the Istanbul Programme of Action (2011-2020).)
What will the Ukraine conflict mean for multilateral development finance? (ODI)
Suspending Russia and Belarus as members of the World Bank and European Bank for Reconstruction and Development would be misguided for developmental, political and legal reasons. The Ukraine crisis will tighten lending headroom of EBRD and the World Bank, accentuating the call to strengthen MDB capital, but it poses no danger to the long-term financial stability of either bank. New Development Bank will face severe impacts from the crisis due to its exposure to Russia as a shareholder and borrower, while Asian Infrastructure Investment Bank will be much less impacted. The Black Sea Trade and Development Bank and the Russia-led International Investment Bank will also face considerable difficulties due to the conflict.
Financing Solutions to Reduce Natural Gas Flaring and Methane Emissions (World Bank)
Decarbonizing the world’s energy systems is an essential pillar of the global response to climate change. At present, gas flaring, the 160-year-old practice of burning the natural gas associated with oil extraction, and the related methane emissions represent as much as 12 percent of the greenhouse gases released by the global energy sector. With the share of energy produced by oil and gas projected to increase until 2040, urgent action must be taken to accelerate the transition to net-zero. Ending routine gas flaring and curtailing methane emissions is an achievable way to significantly reduce emissions. This would not only help address climate change, it could also provide millions of people with an energy source. For instance, if all the associated gas flared across the world were put to productive purposes, it could power the entire Sub-Saharan Africa. This Financing Solutions to Reduce Natural Gas Flaring and Methane Emissions report provides a systematic framework for evaluating the feasibility of flare reduction projects at medium-sized flaring sites. The approaches and tools developed will help policymakers and operators analyze investment barriers, identify key variables and success factors, and model financial options for those medium-sized flares that have historically been overlooked.
DDG González: Resilient supply chains call for trade diversification, not decoupling (WTO)
DDG González observed that the world needs trade diversification, not decoupling. The WTO Trade Facilitation Agreement offers powerful tools to expedite trade and lower costs, which helps to build deeper and more diversified global markets. WTO members have made enormous progress in implementing the Agreement, she added, but more efforts are needed to fully enjoy its benefits. DDG González emphasized that global digital rules on electronic commerce are needed to accelerate the transition towards paperless trade, facilitate real-time data sharing between supply chain actors, and create opportunities for new players - especially small businesses - to participate in supply chains. Modernizing the infrastructure that keeps every link of the chain together is another important building block for more resilient supply chains, she said.
WTO rules on product standards help align carbon content measurements, new report finds (WTO)
“Global carbon standards are essential for credible and comparable emissions reductions,” Deputy Director-General Jean-Marie Paugam said to mark the launch of the sixth information note in the trade and climate change series, titled “What Yardstick for net-zero? How WTO TBT (Technical Barriers to Trade) disciplines can contribute to effective policies on carbon emission standards and climate change mitigation.” “The WTO and its TBT Agreement play a crucial role in facilitating the transition towards a low-carbon world by enabling WTO members to cooperate and converge on common standards to measure and verify the carbon content of products,” he said. “Trade is about people and there are few 21st century challenges that threaten the livelihoods of those most in need more than climate change. Trade can and must be part of the solution.”
DG Okonjo-Iweala: “This is not the time to retreat inward” (WTO)
“Trade has been and will remain a critical means of adaptation to the mounting global shocks that the world is currently experiencing,” the DG declared. “This is not the time to retreat inward … This is the time to stress the importance of multilateralism, global solidarity and cooperation.” The COVID-19 crisis and the war in Ukraine have raised concerns about the vulnerability of global supply chains and led to calls in some quarters to re-locate production and sourcing locally in order to ensure stable supplies of critical goods and staples. The Director-General however underlined that supply resilience “will ultimately be best served by deeper and more diverse international markets.”
WTO, WCO launch publication on role of latest technologies in facilitating trade (WTO)
The publication outlines the results of a 2021 survey of customs authorities’ use of advanced technologies such as blockchain, the internet of things, data analytics and artificial intelligence to facilitate trade and enhance safety, security and fair revenue collection. The joint publication highlights the benefits that can result from the adoption of these advanced technologies - such as enhanced transparency of procedures, better risk management, and improved data quality - leading to greater efficiency in customs clearance processes and greater revenue collection.
In her opening remarks, WTO Deputy Director-General Anabel González said: “Advanced technologies offer customs an opportunity to take a big leap forward on trade facilitation. Take blockchain. Its widespread application could help us make trade both more transparent and less paper intensive. That would reduce trade costs, which is good news for everyone, especially small businesses, which are disproportionately affected by red tape at the border.”
The Impact of COVID-19 on Global Poverty (International Banker)
When it comes to COVID-19’s influence on global poverty, the numbers are sobering, to say the least. According to World Bank estimates, a massive 97 million people fell into poverty in 2020 due to the pandemic, such that their daily incomes dropped below $1.90 and remained there throughout much of 2021. “Globally, the increase in poverty that occurred in 2020 due to Covid still lingers, and the Covid-induced poor in 2021 continues to be 97 million people,” the World Bank stated in June. As such, the global poverty rate rose from 7.8 percent to 9.1 percent, according to the World Bank’s October 2021 findings, which concluded that globally, “three to four years of progress toward ending extreme poverty are estimated to have been lost”.
“The increase in inequality reflects the fact that the COVID-19 crisis worsened an already weak growth environment for the poorest countries,” according to the World Bank, which attributed the widening disparity to the fact that incomes of the lowest-income group have failed to significantly recover—and, indeed, deteriorated further for the very poorest in 2021
The evidence they gathered also showed that even prior to the outbreak of COVID-19, more than half a billion people were pushed into—or further pushed toward—extreme poverty because they have had to pay for health services out of their own pockets, with the pandemic now likely to have exacerbated the situation. “The pandemic also triggered the worst economic crisis since the 1930s, making it increasingly difficult for people to pay for care,” the WHO added. “Even before the pandemic, half a billion people were being pushed (or pushed still further) into extreme poverty because of payments they made for health care. The organizations expect that that number is now considerably higher.”
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SA presents an “immense” investment case (SAnews)
President Cyril Ramaphosa says South Africa is ripe with opportunities for among others, trade, investment and tourism. “The benefits of doing business in South Africa are immense indeed. We have a strong and well-regulated financial, banking and taxation system, world-class IT infrastructure, and a range of business and investor friendly regulations and policies.
“Most importantly, we have a ready and able workforce with the necessary skills and capabilities to take your business to new heights,” he said.
President Ramaphosa highlighted to the Expo that South Africa offers participation in a wide range of sectors – both traditional and modern. “Our diverse industries include traditional sectors such as agriculture and agribusiness, clothing and textiles, automotive, mining, capital equipment, tourism, hospitality and manufacturing.
Commodity boom remains untapped as South Africa fights rail woes (Engineering News)
South Africa is missing out on some of the riches on offer from the commodities boom as a rail network beset by problems hobbles its exports. While coal prices recently soared to a record and iron ore is historically high, miners are being forced to stockpile supplies as state-owned Transnet SOC’s rail network buckles under issues from cable theft to breakdowns, compounded by years of corruption. Last year alone, more than $2-billion in potential coal, iron ore and chrome exports were lost, an industry group said.
Botswana imports 20 800 tons of sugar via Namport (New Era)
The demand for Brazilian sugar is set to increase in the next coming months, with neighbouring Botswana recently importing massive quantities through the port of Walvis Bay. The first break bulk consignment of 20 800 tons was successfully offloaded at Namport. The importation and handling as well the storage of this consignment has been facilitated by Sea Rail Botswana, the terminal operator for the Botswana Dry Port, situated at Walvis.
Business development partner at Namport Phillemon Mupupa said the country’s port authority, together with the Walvis Bay Corridor Group (WBCG), persistently promote the use of the port and the Namibian corridors as they link SADC with the rest of the world. “Major SADC markets, namely Zambia, Democratic Republic of Congo, Botswana, Angola and South Africa are a crucial hub for the Brazilian imports into southern Africa,” he said.
Busia Border Post generates Sh4 billion revenue collection (Kenya News Agency)
Annual revenue collection at the Busia border has risen from Sh. 400 million in 2018 to Sh. 4 billion in 2021 following the establishment of a One Stop Border Post (OSBP) in the area. The OSBP which was launched in 2018 has reduced turnaround time for travelers and cargo clearance at the same time sealed loopholes for revenue pilferation.
An ultra-modern drive through scanner, luggage scanners, detectors and CCTV surveillance installed at the border post, Kenya Revenue Authority (KRA) Western Regional Coordinator Pamela Ahago added, has helped to ease flow of trucks at the same time net extra revenue which previously was being lost.
Dairy regulator sets sights on milk import (Business Daily)
The dairy regulator will import milk if supply gets worse at a time prices have risen twice within a month. Processors are grappling with a shortage of milk supplies owing to the dry spell that has impacted production at the farm level. The Kenya Dairy Board (KDB) managing director Margret Kibogy said they are monitoring the situation and are yet to make the decision on imports. “We will only make that decision (to import) if the supplies situation gets too low,” Ms Kibogy told the Business Daily. Ms Kibogy said the agency is monitoring to see if the rains that are forecast to start next week will have an impact on production.
Car sales defy Covid-fuelled price surge to grow by 14pc (Business Daily)
Car sales grew 14 percent last year, defying a record increase in vehicle prices amid a recovery from Covid-19 economic hardships. The Kenya National Bureau of Statistics (KNBS) data shows that the number of newly registered units rose to 107,499 units last year up from 94,128 the previous year. The rise emerged in a year when second car prices increased by up to 52 percent due to a combination of factors including costly units in source markets like Japan, a weakened shilling against the dollar and supply hitches due to the Coronavirus restrictions. The costly cars were expected to dim demand in an economy that is yet to fully recover from Covid-19 effects which triggered layoffs, job cuts and business closures.
Japan-based firm eyes Kenya, EAC car market in duty-free deal (The Star, Kenya)
Japan-based car exporter– IBC Japan Ltd is now eying to increase its exports and dealings in Kenya, tapping into the government-driven Special Economic Zones (SEZs).The government is leveraging on the SEZs as part of its plans to boost Foreign Direct Investment (FDIs) in post-Covid-19 economic recovery. The Kyoto headquartered firm has entered into a partnership with Nairobi-based local firm – Ziara SEZ Limited, in creating a base for used cars in Nairobi, which is expected to bring units closer to buyers.
Overall, Kenya imports an average of 4,000 to 7,000 units of used cars a month, based on seasonality and spending power, a market the firm wants to tap into to increase its share.
Ugandans feel the pinch of higher prices of goods (The East African)
High prices of imported raw materials and shipping costs, and the uncertainty of fuel supplies in Uganda have triggered inflationary effects in the past three months causing the prices of goods in the country to go up. The crisis presents difficult economic choices for both government and consumers. A quick survey at local retail outlets shows prices of common household items such as washing soap, sugar and cooking oil have increased by more than 50 percent since December 2021, with a notable price gap between supermarket chains and shops.
fuel prices have risen by more than 10 percent in the past three months despite the resolution of Covid-related bottlenecks at the Kenya-Uganda border. Higher petrol prices escalated the overall cost of doing business but public transport fares remain stable. Whereas Uganda Revenue Authority sources attribute the fuel scarcity to unpredictable deliveries at the port of Mombasa in the beginning of this year, the Russian invasion of Ukraine, will be a factor. Also, reopening of world economies saw manufacturers to quickly capitalise on growth opportunities. However, it is clear mass manufacturers like China cannot cope with the resumption of massive economic activity in 2022 globally. Critical imported raw materials sourced by Ugandan manufacturers include inputs required for production of cooking oil, beverages, plastics and pharmaceuticals.
What will it take for commodity prices to drop? (The New Times)
Economists have pointed out some factors that should come into play for the prices of essential commodities to go down. The country is experiencing a rise in prices of commodities like cooking oil, soap and sugar. It is a predicament shared by other countries within the region, at least on some of the commodities. The Ministry of Trade and Industry clarified that the prices did not just shoot up suddenly, but rather, they have been increasing steadily over the last two years due to the disruptions in the food supply chain caused by the Covid-19 pandemic. The ministry added that shipment costs also increased, something that has affected prices of imported goods.
Debt payments surpass State running expenses (Business Daily)
Debt repayments will for the first overtake the national government’s recurrent spending on items like civil servant salaries under President Uhuru Kenyatta’s successor in the year starting July, underlining the burden of mounting State borrowing. Treasury chiefs project in the supplementary budget under parliamentary review that Kenya will spend Sh1.36 trillion annually in the year starting July for debt repayment, up from Sh1.15 trillion in the current fiscal period. The debt costs will for the first time in Kenya’s history surpass the recurrent expenditure, projected at Sh1.34 trillion in the coming year from the current Sh1.27 trillion.
Rwandan business delegation in Harare for trade conference (The New Times)
A high-level delegation from Rwanda’s business community is in Harare to attend the second leg of the Rwanda-Zimbabwe Trade and Investment Conference which kicks off on Monday. The chairperson of Rwanda Private Sector Federation (PSF), Robert Bafakulera urged the Zimbabwean business community to take advantage of the conference to expand their businesses. “We are interested in agriculture, agro-processing, agri-business, mining, energy and trade. I would call upon our friends here in Zimbabwe to find some time so that we sit down, we network and form some partnerships,” Bafakulera said.
“Zimbabwe has a strong financial sector, that financial sector needs to have a footprint in East Africa and the best entry point for them is in Rwanda using our finance centre called the Kigali International Finance Centre,” said Barigye.
Workshop probes the central role of urbanisation in Lesotho’s National Development Plan (UNECA)
A cross-sectoral implementation approach to the urban dimension of Lesotho’s National Strategic Development Plan (NSDP) should be at the forefront if the country is to reduce poverty and deliver prosperity for all. This was an overarching message from a four-day workshop, hosted by the Government of Lesotho and the United Nations Economic Commission for Africa (ECA), in the country’s capital Maseru from 21 to 24 March.
As part of this project, ECA presented the findings of its assessment to the workshop participants, which analysed the capacity of Lesotho’s national and local governments in implementing the New Urban Agenda. A key finding was the urgent need to bridge the gap between policy and practice, as well as the need to modernise the existing strategies in response to emerging threats such as climate change and COVID-19.
A new report estimates that by 2050 climate risks could cause damage worth $3.9 billion in Ghana’s transport sector. But the report also offers a roadmap that could prevent the worst from happening. It also highlights extensive efforts by the government to counter climate risks. The potential damage of $3.9 billion is thrice the investment of $1.3 billion made in the sector in 2019, according to the study. The research was led by the national Ministry of Science, Environment, Technology and Innovation, in partnership with the Global Center on Adaptation. It reflects efforts by the government of Ghana to assess the threat that climate change poses to infrastructure assets. It also mentions government efforts to prioritize adaptation investments to mitigate the climate risks facing Ghana’s infrastructure in the energy, transport, and water sectors.
“Ghana: Roadmap for Resilient Infrastructure in a Changing Climate” was carried out under the Africa Adaptation Acceleration Program, a partnership of the African Development Bank Group and the Global Center on Adaptation, with support from the United Nations Office for Project Services, the United Nations Environment Program, and the University of Oxford’s Environmental Change Institute.
The Future of the Egyptian Industry in light of Global Transformations Conference (State Information Service)
The Future of the Egyptian Industry in light of Global Transformations Conference, organized by the Egyptian Center for Strategic Studies (ECSS), was launched on Saturday morning, March 26, 2022.
The conference discussed, during the first session, qualitative transformations globally and their impact on the industry, while the conference discussed, during the second and last session, a roadmap for the localization and development of the industrial sector. The conference, also, discussed the successive global developments with the view to understanding their repercussions on the future of industrial business systems.
Senator Dr. Abdel Moneim Saeed, Head of the advisory body at the Egyptian Center for Thought and Strategic Studies, confirmed that Egypt faces international challenges in the field of industry, noting that globalization has dominated the global system during recent decades in a way that the world has become a small village, however this small village has returned to its vast differences now. He explained that these differences are in the heart of the European continent, where the two world wars took place, and not in any other country such as Afghanistan, Iraq or Georgia as happened before.
Malawi Renews Commitment to Regional Integration (COMESA)
The Government of Malawi has renewed its commitment to regional integration as championed by COMESA. High Commissioner of Malawi to Zambia, Her Excellency Margaret Constance Kamoto states that Malawi has always believed in the ideals of COMESA and continues to positively contribute to the deepening of regional integration among the 21 Member States.
Ms Kamoto acknowledged the negative impact of COVID-19 on intra-regional trade and called for measures to cushion the impact on traders and businesses. She applauded COMESA Secretariat for its unwavering financial, technical and material support rendered towards Malawi’s economic development agenda adding that with the finances received, the country has embarked on massive industrialization, investment and trade growth efforts but still needs support amid COVID-19 setbacks. “The COVID-19 pandemic has proved to us that regional integration can play a critical role in meeting the supply and demand needs of goods and services in our region and its time that Member States take advantage of the situation by standing together to boost intra-African trade by producing goods and services which will benefit us,” she added.
African trade news
A comprehensive agenda to boost worker output in Africa is vital for the continent’s post-pandemic recovery and long-term prosperity, as well as protection against the impacts of climate change, says a new World Bank report. Sluggish growth in productivity, a key driver of growth and development, has left the region lagging behind many developing countries which have powered to prosperity on the back of productivity gains, says the ‘Boosting Productivity in Sub-Saharan Africa’ report. It calls for efforts to better direct resources to the most productive firms in the sectors that hold the most promise for the continent. These include policies that would boost productivity in the agricultural sector, on which the vast majority of Africa’s poor people depend and create non-farm jobs through improved access to finance and more efficient tax systems.
“Continual and sustained increases in productivity are critical for ending poverty and improving prosperity in Africa. Given the host of global and local challenges confronting Africa, policymakers must ensure that precious resources are optimally allocated to sectors which are important for durable long-term growth that is inclusive, resilient and sustainable,” said Albert Zeufack, World Bank Chief Economist for Africa.
IATF endorsed as booster for African trade, development goal (Businessday)
The Intra-African Trade Fair (IATF) has been endorsed by key stakeholders as the pathway to boosting African trade and accelerating economic development in the continent following successes recorded from previous editions. Organized by the African Export Import Bank (Afreximbank) and the African Union (AU), the IATF which started in 2018 has recorded significant success in trade and investment deals, while providing a platform for investors to see numerous opportunities and for African businesses to increase their prospects. Speaking during the signing ceremony to officially confer Côte d’Ivoire as the Host of IATF2023 in Abidjan, Benedict Oramah, president and chairman of the Board of Directors of Afreximbank said the IATF has become a platform for actualising the vision of the African continental Free Trade Area (AfCFTA).
He added that the universal access to trade information was the ‘hammer ‘ needed to break down the 110 borders that divide Africans in order to achieve a resounding success in Africa.
Africa must remove barriers to trade, says Kenyan minister (CNN)
More than a year on, governments are now working to facilitate trade by removing tariffs on thousands of products across Africa. Kenya, Africa’s sixth-largest economy, hopes that the deal will cement the country’s position as a regional commercial hub and trade center. Speaking to CNN Business last month at Expo 2020 Dubai, Betty Maina, Kenya’s Minister of Industrialization, Trade and Enterprise Development, says the private sector’s involvement in the trade agreement can help the country achieve that goal. The following interview has been edited for clarity and length.It’s easy for Kenya to trade with Uganda and Rwanda because we have road connections, but to get goods from Kenya to Nigeria requires us to use the sea, because we don’t have a road. But [the AfCFTA] shows that there are structures in place to start trading within Africa as we finalize the modalities.
Use of Technology Key to Boost Intra-Africa Trade (COMESA)
COMESA will continue to leverage on technology to create cheaper and easily accessible processes under its Trade Facilitation Programme to further deepen intra-regional trade and take advantage of recent revelations that the bloc has a trade potential of over USD$100bn. Using digital platforms coupled with advocacy, sensitization and information dissemination, the bloc is expected to help deepen intra-regional trade which in turn will enhance intra-African trade. In line with this, COMESA Secretariat has so far pioneered several instruments, projects and programs under trade facilitation such as the Yellow Card Scheme, Regional Customs Transit Guarantee (RCTG), Simplified Trade Regime (STR), simple rules of Origin, Certificate of Origin and One Stop Border Posts (OSBPs) to assist further push intra-trade levels. Digitalization of trade Instruments including e-CO (the Electronic Certificate of Origin), Online information exchange platform, E-Trade, E-Logistics and E-Legislation are some of the key interventions that are expected to boost trade in the region.
This was said by Secretary General Chileshe Kapwepwe during the African Chief Executive Officers (CEOs) Roundtable Conference organized by the African Union Commission on the side-lines of the Expo Dubai 2020 held in the United Arab Emirates on 15 March 2022.
Kagame stresses AfCFTA opportunities for young entrepreneurs (The New Times)
President Paul Kagame has said that capitalising on the African Continental Free Trade Area (AfCFTA), which is now operational, to create opportunities for young entrepreneurs is essential for the continent’s sustainable development. He made the case while portraying the need to identify new areas of cooperation between Rwanda and Egypt, according to the Presidency. Kagame added that it is critical to get both economies back on track and strengthen the resilience against future shocks. “Covid-19 pandemic has reminded us that we are inter-connected, more than ever before and that no country can tackle global crises alone,” he said.
COMESA Calls on Member States to Utilise Online Payment Platform, REPSS (COMESA)
Nine out of 21 countries are currently live on the COMESA Regional Payment and Settlement System (REPSS) since it was launched some six years ago. The value of transactions processed on the system has however been increasing, a sign that the platform is steadily being accepted in the regional trade bloc. Secretary General Chileshe Kapwepwe has stated that implementation of REPSS is a great milestone in COMESA’s quest to achieve regional economic integration and all Member States need to get on board. Once fully operational, REPSS is expected to significantly contribute to the expansion of intra-COMESA trade by facilitating online payments of all intra-COMESA transactions. This move is expected to foster a reduction in transaction and operational costs and bring about a switching of relationships for trade transactions from between commercial banks and foreign correspondents to commercial banks and central banks thus making intra-regional trade transactions cheaper.
Platform bridges gap between cargo transporters and clients (Business Daily)
Software engineer Jonathan Ndede, the founder of Ngamia Africa began by reaching out to local investors who helped him raise about Sh50 million to launch the e-platform Ngamia Africa. “We knew that there was an issue in terms of logistics transportation, supply chain and commercial movement of goods from point A to point B. Movement of people has been easy because of availability of platforms such as Uber and motorbikes, but it hasn’t been the same in the transportation of goods. The only solution was to go digital, riding on the fact that smartphone usage in Kenya had increased,” he says.
The design of the platform was such that once a user registers and makes a request to have their goods transported, they would get a list of transporters registered on the platform as third-party service providers. The transporters would start to competitively bid based on the customers’ request.
EAC in crisis once again as funding model splits partner states (The East African)
An impasse has hit the East African Community once again, with Kenya being accused of taking a hardline stance on a proposal that would see contributions from partner states based on gross domestic product (GDP). The EAC Finance and Administration Committee has raised the red flag over remittance arrears amounting to $50 million, a situation that has left the Secretariat and its organs almost in limbo.
“I hear it is Kenya that has delayed that mechanism,” said Mr Namara. But Kenya, which is the current EAC chair and the region’s largest economy, distanced itself from the blame, stating that member countries must fulfil their financial obligations to the bloc that’s the problem. Nairobi has cleared its dues. The EAC budget for the fiscal year 2021/22 is $91.7 million. If paid, the arrears would cover more than half of the budget. According to the EAC Council of Ministers, $54.1 million (59 percent) was to be contributed by partner states or raised as other internal revenues and $37.6 million (41 percent) from development partners.
The 12th Meeting of Sectoral Council on Finance and Economic Affairs held on the May 7, 2021 proposed hybrid model in which partner states would contribute 50 percent of the budget on equal ratios and the remaining 50 percent would be assessed based on GDP per capita to cover 40 percent, then intra-EAC trade would cover five percent and imports from outside EAC five percent. The Council later approved a model that stipulated that 65 percent be contributed by partner states on equal ratios and 35 percent be assessed based on partner states’ nominal GDP per capita for the past five years, as done by the World Bank. But Kenya called for further consultations. Kenya’s Cabinet Secretary for National Treasury and Planning Ukur Yatani, who chaired a Finance Ministers meeting in Mombasa late last year, said the proposal was under review.
It’s all systems go for admission of DR Congo into EAC (The Citizen)
The Democratic Republic of Congo is all set to be admitted as the seventh member of the East African Community. The EAC secretariat says all arrangements are in place for the Extraordinary Heads of State Summit on March 29, when Kinshasa will be formally received in a virtual session. The Council of Ministers held the 48th Extraordinary Council meeting on Friday to put the final touches on the admission plan. “There is only one issue that we are discussing, and that is DRC,” Dr Kevit Desai, Kenyan Principal Secretary, EAC and Regional Affairs, told The EastAfrican. “The review mission is over, the negotiations are over. We are on the ninth step, which is basically creating a format for the Summit.” The Council is set to present to the Heads of State the decision for adoption.
Trans Kalahari Corridor Secretariat to hold Namibian leg of information sessions this week in Swakopmund (Namibia Economist)
The easing of trade across borders is an important attribute that defines and shapes the Trans Kalahari Corridor Secretariat (TKCS). In a bid to ensure continuity of the same, the corridor management institute has organised yet another Information Session scheduled for 30 March. The Information Session will be held in Swakopmund at the Sea Side Hotel. The theme of the information session is ‘Enhancing Trade Facilitation through Innovative Solutions.’
The Deputy Executive Director in the Ministry of Works and Transport, Jonas Sheelongo will give the welcome remarks, TKCS Executive Director, Mr Leslie Mpofu will give a Statement and objectives of the information session, and the Director of Infrastructure at South African Development Committee (SADC) Ms Mmapolao Mokoena will give the Keynote address.
How much did African startups raise in 2021? (TechCabal)
In 2021, African startups raised over $4 billion across 355 funding deals. Across Africa, this number is almost 3x times what was raised in 2020 and 2019, where the ecosystem recorded $1.7 billion and $1.3 billion respectively. While 2021’s total tech funding in Africa is certainly the most impressive factor for the ecosystem, it’s just the tip of the iceberg. Across Africa’s 4 regions, many new firsts were achieved in 2021. It was the year $100 million single-round raises were normalised with 10 startups—including unicorns Wave, OPay, Flutterwave, and Chipper Cash—raising $100 million and breaking the records. That’s a significant increase from 2020, where no African startup raised $100 million in a single round, and a 400% total increase from the only 2 startups that raised such amounts pre-2021.
Commodities Update — Ukraine’s grain export falls, Africa raises $1bn for agri production (Arab News)
Ukraine’s new agriculture minister Mykola Solskyi on Saturday said Ukraine’s ability to export grains was getting worse by the day and would only improve if the war with Russia ended. The African Development Bank, or AfDB, aims to raise $1 billion to rapidly ramp up agricultural production in Africa and stave off a potential food crisis brought on by Russia’s invasion of Ukraine, its president told Reuters on Friday. “Already, coming out of COVID, we have 24 million people falling further into extreme poverty, and that’s going to worsen the situation,” said AfDB President Akinwumi Adesina in an interview. To avoid a food crisis, he said the AfDB was planning to launch an emergency food production plan that would focus on rapidly boosting wheat, maize, rice, and soybean.
Growing Green: Enablers and Barriers for Africa (AfDB Working Paper)
Discussions about green growth transition in Africa have mostly been silent on quantifying Africa’s progress and assessing countries’ “green” versus “brown” growth performance. We construct a measure of Africa’s green growth performance using an emissions-adjusted production technology framework that jointly accounts for the production of desirable and undesirable outputs over the period 2000-2019. We also identify the important country-level characteristics that drive green productivity growth. The computed green Malmquist-Luenberger productivity indexes penalize countries for the production of “bad” outputs and credit countries for the reduction in emissions and production of “good” outputs. Our main results indicate that Africa’s productivity growth is overstated when undesirable outputs are ignored in the measurement of Africa’s growth performance. Second, it is technological progress and not efficiency change—i.e., the catch-up effect—that has been the primary source of Africa’s green economy transition, implying a reduction in the gap to the technological frontier for most countries. Our analysis of the drivers of green growth shows that high-income levels, trade-embodied R&D, and domestic R&D are the main enablers of green growth, while high energy intensity is the main barrier to green productivity growth. We also find evidence of nonlinearities between income level and green growth performance, consistent with the environmental Kuznets curve hypothesis. The paper ends with far-reaching policy recommendations for accelerating Africa’s green growth transition. 129 duplicates removed
Discussions about green growth transition in Africa have mostly been silent on quantifying Africa’s progress and assessing countries’ “green” versus “brown” growth performance. We construct a measure of Africa’s green growth performance using an emissions-adjusted production technology framework that jointly accounts for the production of desirable and undesirable outputs over the period 2000-2019. We also identify the important country-level characteristics that drive green productivity growth. The computed green Malmquist-Luenberger productivity indexes penalize countries for the production of “bad” outputs and credit countries for the reduction in emissions and production of “good” outputs. Our main results indicate that Africa’s productivity growth is overstated when undesirable outputs are ignored in the measurement of Africa’s growth performance. Second, it is technological progress and not efficiency change—i.e., the catch-up effect—that has been the primary source of Africa’s green economy transition, implying a reduction in the gap to the technological frontier for most countries. Our analysis of the drivers of green growth shows that high-income levels, trade-embodied R&D, and domestic R&D are the main enablers of green growth, while high energy intensity is the main barrier to green productivity growth. We also find evidence of nonlinearities between income level and green growth performance, consistent with the environmental Kuznets curve hypothesis. The paper ends with far-reaching policy recommendations for accelerating Africa’s green growth transition.
The African Development Bank and the Commission of the Economic Community of West African States (ECOWAS) have signed a memorandum of understanding for $3.56 million in grant funding to support the development of pharmaceutical industries in West Africa.
The project’s total cost is $3.77 million, to which the ECOWAS Commission will provide $200,000 in cash and $400,000 in-kind. The funds will support the implementation of regulations to allow duty-free access to pharmaceutical raw materials, packaging, and finished products under the ECOWAS Common External Tariff. It will also help establish an effective regional pharmaceutical regulatory ecosystem by providing technical assistance programs for regional regulatory authorities. Commissioner Traoré said: “Local production of pharmaceuticals and biologicals has become an imperative and a regional priority, as is the provision of healthcare delivery services. The African Development Bank’s support of these priorities will help ECOWAS achieve its development objectives.”
The EU is hurting itself with its one-sided Africa trade policy (EU Reporter)
Ukraine’s descent into hell has driven thousands of its citizens into European Union countries for safety. The kindness shown by Ukraine’s neighbours has been tremendous, but this almost biblical exodus is set to create severe pressures within the EU, on a scale surpassing even that of the Syrian crisis
Africa’s youth are no different to any other: they want to be educated, healthy and safe, and free to realise their dreams. Should they find stable and fulfilling jobs at home, they will no longer feel the pressure to take life-threatening journeys to unwelcoming lands. Africa is the world’s fastest-growing continent, with a 1.3bn population set to double by 2050
To create sustainable employment, Africa needs to shift from a primary economy dominated by agriculture and raw materials into developed agro-processing and light industrial sectors. This vital change could bring millions out of poverty and help turn off the migration tap. Growing prosperity creates deeper pockets too. A burgeoning middle class means more consumers for European exports. The opportunity is there for the taking.
Global economy news
Fisheries subsidies deal: Why we need it and how to implement it (UNCTAD)
Governments face multiple challenges to sustainably manage marine natural resources. Effects of habitat degradation, overfishing, pollution and climate change are exacerbated by the growing capacity of fishing vessels, including high-efficiency fleets. These are magnified by the distortive effects of public fisheries support, the insufficient availability of scientific data and the weak enforcement of ocean governance. This combination of challenges calls for a profound transformation of the fisheries sector to align it with the 2030 Agenda for Sustainable Development.
In the area of fisheries subsidies, 20 years of negotiations by members of the World Trade Organization (WTO) are now at an advanced stage, with only a few issues left to address. WTO members have pledged to conclude the negotiations before the 12th ministerial conference scheduled for June 2022, though they’re already behind the original deadline of 2020. Sustainability is at the core of the negotiations and a WTO outcome on fisheries subsidies is at our doorstep – an opportunity that cannot be missed.
Supply Chains and Port Congestion Around the World (IMF)
Rising prices and reports of empty shelves in major economies have drawn attention to the functioning of supply chains that normally operate smoothly in the background. Among the issues, the long delays that port congestion may have caused in delivering goods to consumers and firms have been gathering increasing attention. We shed light on these issues leveraging a unique data set on maritime transport. Two main features emerge. First, at the world level, we find that shipping times jumped upwards as soon as the COVID crisis hit, and after a marked acceleration from end-2020, delays surpassed 1.5 days on average by December 2021 – or roughly a 25 percent increase in global travel times. The estimated additional days in transit for the average shipment in December 2021 can be compared to an ad-valorem tariff of 0.9 to 3.1 percent. The midpoint of this range is approximately equal, in absolute value, to the global applied tariff reduction achieved over the 14-year period from 2003 to 2017. Second, not all congestion appears related to increased demand. Many ports, especially since mid-2021, exhibit longer wait times despite handling less cargo than pre-pandemic. Infrastructure upgrading is therefore likely a necessary, but not sufficient condition for building resilience during a crisis where other factors (such as labor shortages) may also become binding.
Full speed ahead with digital connectivity and Equiano (The Media Online)
Google’s state-of-the-art Equiano submarine cable is expected to be operational by end 2022, as the infrastructure installation project proceeds. Equiano is Google’s 14 000km submarine cable that will run from London to Cape Town, with other confirmed landing points being Portugal, Nigeria, Namibia and St Helena. Other countries will be able to join the network in the future.
The cable project was announced in 2019 and was originally scheduled to go into operation in 2021. The latest update is that the cable will probably be operational by year end, and no doubt the delay is due to the long Covid-19 lockdowns. Togo celebrated its landing last week – the first in Africa – while the Namibian landing station is ready and waiting, having been completed last month.
Equiano is fully-funded by Google and is part of its US$1 billion investment in building digital capacity on the continent. It will provide fifth-generation 5G service and “20 times more network capacity” to West Africa and SADC than these regions currently enjoy. I
Poor and Vulnerable Countries Need Support to Adapt to Climate Change (IMF Blog)
All countries, rich and poor, must adapt to climate change. A recent report by the United Nations Intergovernmental Panel on Climate Change spelled out the dramatic consequences of failing to curb the rise in global temperature and adapting to a hotter planet. Adaptation should address risks from climate change and extreme weather, for example by safeguarding agriculture, managing the impact of rising seas, and making infrastructure more resilient.
The benefits of adaptation are sometimes difficult to estimate because they depend on specific factors such as how well-adapted a country is to its current climate. Nevertheless, well-crafted policies can produce large returns, as we show in three papers published today covering climate adaptation and fiscal policy, macro-fiscal implications, and bringing climate adaptation into the mainstream of fiscal planning.
IMF to Cut Growth Forecast as Some Weaker Nations Risk Recession (Bloomberg)
The International Monetary Fund is poised to cut its global growth forecast for 2022 as a result of the war in Ukraine, and sees recession risks in a growing number of countries, Managing Director Kristalina Georgieva said. The world economy is still set to expand in 2022, though by less than the 4.4% previously anticipated, Georgieva said in an interview with Foreign Policy magazine broadcast Tuesday. The IMF is set to update its projections in April when the fund holds its annual spring meetings.
Global food security: These are the main challenges to feeding the world – and how we can solve them (WEF)
Experts are warning about the impact the Russian invasion of Ukraine will have on global food security.
“Conflict and hunger are closely intertwined – when one escalates, the other usually follows. As in any crisis, it is the poorest and most vulnerable who are hardest hit, and in our globalized world, the impact of this conflict will reverberate across continents.” These are the words of Gilbert Houngbo, former Prime Minister of Togo now President of the United Nations’ International Fund for Agricultural Development (IFAD). IFAD is “very concerned” that an extended conflict in Ukraine could limit the world’s supply of staple crops such as wheat, corn and sunflower oil, resulting in skyrocketing food prices and hunger, he adds. “This could jeopardize global food security and heighten geopolitical tensions.”
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South African Investment Conference highlights nation’s resilience (AfDB)
African Development Bank Group President Dr. Akinwumi A. Adesina has pledged his institution’s support for South Africa, announcing a $2.8 billion package for the country over the next five years. Some $400 million (ZAR 6 billion) will support South Africa’s Eskom and the country’s energy transition. Adesina was speaking at the opening of the South Africa Investment Conference in Johannesburg today
President Ramaphosa outlined measures his government has made, including social and economic relief packages, describing them as “difficult but necessary reforms” in energy, state-owned enterprises, and the fiscal and taxation sectors, to drive economic growth.
Adesina pledged $400 million from the African Development Bank in support of the country over the next three years, particularly for Eskom, as it transitions to renewable energy. He said the Bank was working with international partners, especially the G7 countries, to establish a just energy transition facility that will support South Africa in raising at least $27 billion.
SA’s strategic position within AfCFTA adds immense value to investors (Devdiscourse)
South Africa’s strategic position within the African Continental Free Trade Area (AfCFTA), adds immense value to investors who want to benefit from improved access to large markets. This will be highlighted at the 4th South African Investment Conference (SAIC), which is currently underway at the Sandton Convention Centre, in Johannesburg. The conference brings together private and public sector decision-makers as they seek to showcase trade and investment opportunities in the continent. One of President Cyril Ramaphosa’s investment envoys, Jeff Radebe, highlighted that Africa offers investors access to a market of more than one billion people with a gross domestic product that exceeds $2.6 trillion. “Historic trade barriers are coming down and economic activities are increasingly conducted seamlessly across the continent. Africa is growing fast into an integrated investment destination,” Radebe said.
Private sector called to work with government on infrastructure
Investors, entrepreneurs urged to be part of SA’s growth story
Zim-Rwanda trade and investment conference starts next week (The New Times)
A total of 60 Rwandan businesses are expected to participate in this year’s Zimbabwe-Rwanda Trade and Investment Conference, slated for March 28 through April 1.
Speaking to The New Times in an exclusive interview on Wednesday, Allan Majuru, Chief Executive of Zimbabwe’s export promotion agency, ZimTrade, said that preparations are underway and that 100 Zimbabwean companies are expected to participate.
Majuru added that the main purpose is to make sure that “we solidify and concretize some of the deals that were discussed in Rwanda and also pave the way for future trade and investment opportunities that are going to come through.”
During the conference a total of three agreements are expected to be signed as part of the efforts to further create market access. They include a memorandum of understanding on trade and investment, an implementation agreement between Zimbabwe Electricity Supply Authority (ZESA) and Rwanda Energy Group (REG) as well as a memorandum of understanding between Rwanda’s Private Sector Federation (PSF) and Zimbabwe National Chamber of Commerce (ZESA).
Trade between Rwanda and Zimbabwe has previously been on a small scale, and businesses are optimistic that with the conference on the horizon, more opportunities will be created.
Treasury revives LPG subsidy scheme as prices rise (Business Daily)
The Treasury has announced plans to revive the stalled subsidy scheme for affordable cooking gas from July, promising relief to families hit by record LPG price spikes following the Russian invasion of Ukraine. Treasury Cabinet Secretary Ukur Yatani has listed the cooking gas distribution scheme as a priority public investment under infrastructure development in the next financial year starting July. The cooking gas subsidy scheme initiated by the Ministry of Energy during the 2016/2017 financial year was aimed at cutting reliance on environment-unfriendly kerosene and charcoal, which are widely used in most rural and urban poor households.
The draft Budget Policy Statement for the year starting July now shows that the Treasury expects to fund the supply of at least 300,000 cylinders. This is, however, only a small percentage of the target of three million that was outlined in the initial plan.
The return of the subsidy comes amid the sharp rise in the cost of cooking gas that has piled pressure on families already struggling with daily bills due to job losses and drastic cuts in earnings in the wake of the Covid-19 pandemic.
Ethiopia moves to allow entry of Kenyan banks (Business Daily)
Ethiopia has constituted a committee to liberalise the banking sector, taking a major step in opening the door for Kenyan lenders such as KCB Group #ticker:KCB to set up operations in the populous nation .The committee has already started work to amend Ethiopia’s half-a-century old financial code, local reports said meaning the long-awaited easing of restrictions on foreign banks making investments in Ethiopia has inched closer. A new code guiding the country’s banking sector will allow the opening up of the financial sector, the head of the committee was quoted saying. Business Daily learnt that the committee’s work plan states the first draft of the financial services code must be ready by December 2022.
“The new code is necessitated to cope with the new direction the economy is going in. This includes a capital market and opening up of the economy for foreign players,” Mr Alemante was quoted saying by Ethiopian publication The Reporter.
East Africa: First Ever Uganda-Burundi Business Forum Held in Bujumbura (allAfrica)
Uganda and Burundi have held their first ever business forum as one of the way to bolster relations between the two countries but also encourage trade.
Nabakooba said for many years, Uganda and Burundi have been engaged in trade amongst themselves but noted this was done at an informal set up. “It has been mostly done by individuals or firms who on their own, identified markets for their businesses or sources of the goods and services in each other’s countries. Business between Uganda and Burundi has been oscillating over the years. Sometimes it registers significant growth and at other times registers decline, depending on the prevailing situation in the two countries and the region,”Nabakooba noted.
Minister Nabakooba explained that in 2009 Uganda exported goods worth $82 million and this grew to $92million in 2012 whereas imports from Burundi grew from $0.8 million to $2.8 million between 2009 and 2012 and by 2021 Uganda’s exports were at $50 million from $37.03 million in 2019.
Angola uses the Lobito corridor as a vehicle for investment and growth (Africanews)
Angola is looking to revolutionise the landscape of Southern Africa. Using private investment, it wants to transform the port of Lobito into the gateway of this region. It is also planning to make the province of Benguela the epicentre of trade and development in southern Africa.
João Fernandes, the Coordinator of the Lobito Port Evaluation Commission, says that the Ministry of Transport’s master plan “is closely linked to the Port of Lobito and the Lobito Corridor” and they expect with the participation of foreigners they can improve the infrastructure and efficiency as well.
Pinzon also sees great potential for Lobito. He thinks it has a great infrastructure and that “it has the potential to become the gateway to the Southern part of Congo and also to Zambia”. That’s certainly what drove the builders of the Benguela railroad more than a century ago. Now, work is concentrating on bringing the Lobito corridor further into the 21st century with more private investment. Lobito is already geared for larger shipments from the mines with a new terminal to load from trains to ships.
Lekki Port will boost GDP, diversify economy – Stakeholders (TDPel Media)
Some maritime stakeholders on Thursday said the economic benefits derivable from the Lekki Deep Seaport were enormous and would boost the country’s Gross Domestic Product (GDP). Buhari, while inspecting progress of work at the port, directed the Minister of Transportation to consult and bring up a memorandum to the Federal Executive Council (FEC) to link the facility with the railway network The President, Nigeria Private Sector Alliance, Mr Adetokunbo Kayode, said the Lekki port, being one of the biggest in Africa, would be of huge benefit to the nation’s economy.
Kayode, a former Attorney General and Minister of Justice, said upon its completion, the project would result in better efficiency in the import and export of goods in the country.
The Democratic Republic of Congo (DRC) recently hosted the 12th Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC) Tripartite Meeting.
Speaking during the official opening ceremony, Governor of Haut Katanga Province in Lubumbashi, DRC, Jacques Kyabula Katwe, underscored the development of mining and the local market for goods and services, which saw an increase of volumes from Walvis Bay via Zambia to DRC. He emphasised that the revitalisation of the WBNLDC was necessary for the DRC, as it brings access routes via Zambia to DRC. This revitalisation was also imperative for regional cooperation and trade between DRC and Namibia. Recent developments in the member states and regional economic communities pertaining to trade facilitation matters along the corridor were highlighted. The tripartite indaba discussed the urgent need to harmonise transit fees and cross border charges as recommended by the various regional economic communities, the extension of border operating hours, and the need for ratification of the WBNLDC tripartite agreement by the Republic of Zambia.
Furthermore, the need to find an urgent solution to parking space for truckers and migration to the One-Stop Border Post framework, which is a relevant ingredient for enhanced regional integration through trade. With regard to immigration matters, the meeting recommended that Namibia should open a diplomatic consulate in Lubumbashi to ease trade and the issuance of visas.
National Policy Dialogue on the Manufacturing Sector aims at strengthening resilience (Government of Mauritius)
A two-day National Policy Dialogue on the Manufacturing Sector, aiming at assessing the present situation of the manufacturing sector in the light of new challenges, kickstarted this morning at the Maritim Resort and Spa, in Balaclava.
In his address, Minister Bholah stated that the organisation of this policy dialogue at this stage is crucial for the development of the manufacturing sector to reassess the current situation within which it is evolving in a bid to come up with a transformed business ecosystem for a new impetus and greater resilience for the manufacturing enterprises. It will help us together to probe deeply into our respective roles and functions as business operators and Government agencies, added the Minister.
The Minister observed that the ramifications of the Covid-19 pandemic on all aspects of life have provoked for more dialogue, and stressed for the need of common efforts, to reach consensus on policy solutions for the construction of a prosperous future. This sector is an important pillar of the economy and has successfully graduated from being a low-cost producer of basic products to higher value added and more sophisticated products, he pointed out.
African trade news
African Development Bank Group President Dr. Akinwumi A. Adesina told women at a conference in Pretoria on Wednesday that they are part of a revolution that is building across Africa. The head of Africa’s premier development lending institution was speaking at the virtual Women Heads of State Initiative, a new cross-media initiative organized by Africa.com in partnership with Coca Cola Africa. The summit recognizes serving and past women presidents and prime ministers in Africa. One of its highlights is strengthening capacity for emerging female leaders on the continent. Adesina lauded the accomplishments of women in Africa. He said that unlike women in other parts of the world who have had to break through glass ceilings, “women in Africa have had to break through male-dominated concrete ceilings.”
Free movement key to trade within Africa (China Daily)
Free movement of people should be reinforced in Africa to boost economic integration of the continent for common prosperity, according to a report released by the African Union last week. Despite aspirations of African nations to foster closer connections to facilitate trade, lower transaction costs and improve production efficiency, many obstacles still hinder integration within the continent, such as strict restriction of intracontinental movement, stated the 2021 African Integration Report: Putting Free Movement of Persons at the Center of Continental Integration. In addition to the free movement of people, free movement of goods, services and capital are also essential for African integration and should be collectively reinforced.
Railways: Tracking East Africa’s trade renaissance (The Africa Port)
Years ago, the governments of Addis Ababa, Nairobi and Dodoma pitched Beijing about rail corridors to tie together the region’s economies with new standard gauge railways (SGRs). But after the profitability of the Kenyan line raised questions about the viability of connections farther inland, governments are working on other ways to raise the share of freight transported over rail, which has dropped from 70%-80% in the 1970s to 5% in 2019.
In Lomé, leaders commit to tackle cybercrime and enhance digital safety in Africa (UNECA)
A two-day summit of African Heads of State and Government on Cybersecurity ended on 24 March in Lomé , Togo, with the adoption of the Lomé Declaration on cybersecurity and the fight against cybercrime in Africa.
President Gnassingbe said the initiative was about “developing synergies to fight crime in the digital ecosystem, a revolution of our time that opens remarkable opportunities for humanity.” He urged other African countries to ratify the African Union Convention on Cybersecurity and Personal Data Protection adopted in Malabo, Equatorial Guinea on June 27, 2014. Ratifying the Malabo Convention, he noted, will enhance cooperation between African Union member states on the protection of personal and state data.
Ms Songwe noted that “Africa offers a wealth of economic opportunities in virtually every sector,” and that the digital economy represents a key asset to unlock these opportunities by accelerating development outcomes through Africa’s demographic dividend.
COMESA engages business communities on provision of competition laws (Capital FM)
The Common Market for Eastern and Southern Africa (COMESA) has held an engagement session with various business communities in Kenya to discuss the application of the COMESA competition laws in the business environment. The competition and consumer protection law is important for the promotion of trade liberalization as it will curb incidents of illegal practices and provide equity in the business environment. Ministry of Industrialisation, Trade and Enterprise Development Cabinet Secretary Betty Maina said the implementation of any legal instruments such as the competition and consumer protection law is vital for the management of a business. “As Kenya we are interested in ensuring that anti-competitive practices do not create participation barriers to trade,” said Maina. ”This is even more important for businesses as they recover from the Covid-19 pandemic,” she said.
The ECOWAS Commission has signed a protocol agreement with the African Development Bank on a project to support the development of the pharmaceutical industry in the region. The signing ceremony, which took place at the African Development Bank (AfBD) headquarters in Abuja, had in attendance representatives from both institutions.
In his welcoming remarks, Mr. Lamin Barrow, the Director-General of the African Development Bank (AfBD) said the agreement was for the provision of a $3.56 Million grant to support West Africa’s pharmaceutical industry. He stated that “the bank has been a key partner of the ECOWAS Commission, providing financial and technical assistance to Member States to support the implementation of ECOWAS’ regional integration agenda”. He added that the bank’s active portfolio in West Africa consists of 350 projects for a total commitment value of $15.5 Billion.
$338.7m ECOWAS off-grid electricity project takes off in Abuja (The Guardian Nigeria)
The Project Management Unit (PMU) for the $338.7 million Regional Off-Grid Electricity Access Project (ROGEAP) has officially commenced activities from the Economic Community of West African States (ECOWAS) Department of Energy and Mines in Abuja. At a cost of $690 million, the project covers Cote d’Ivoire, the Gambia, Guinea Bissau, Mali, Niger, Senegal, Togo, and Mauritania.
Wole Adeniyi, Chief Executive, Stanbic IBTC Bank Plc, said multiple studies have shown that increase in trade has a direct impact on reducing unemployment and poverty in societies. He noted that the AfCFTA agreement presents numerous trade opportunities that are both exciting and promising, not just for the continent but also for the Nigerian market.
Focus on food safety, trade opportunities for Africa on Francophonie Day (WTO)
Delivering welcome remarks in a video message, DDG Paugam said: “Providing practical support through the STDF to farmers, producers, traders and governments in developing countries is now more important than ever in overcoming supply chain disruptions, keeping trade flowing and ensuring that countries can continue to compete in global markets.” The STDF is a global multi-stakeholder partnership, housed at the WTO, that supports developing and least developed countries in complying with the WTO SPS Agreement and expanding market access. The partnership has supported more than 65 national and regional projects in Francophone Africa since its creation, representing around 30% of all STDF-funded projects and 34% of total resources.
Global economy news
Prime Minister of Barbados: The centre of new global order is equitable international trade (WTO)
Prime Minister Mottley outlined the major trade obstacles facing exporters from small island developing economies, such as the digital gaps, shortage of supporting financing mechanisms and discriminatory standards. “These, not tariffs, not genuine competitiveness and comparative advantages, are the obstacles to today’s international trade. They will be an obstacle too to the efficient and fair prosecution of climate mitigation through the global transfer of capital, technology, and opportunity,” she said.
She concluded: The new global order “requires a next generation WTO committed to calling out obstacles to equitable trade, committed to being even more representative, acting as a countervailing, reforming force against the tendency to narrow, exclusive trade relationships, with a seat at the highest tables to promote the international trade dimension to the world’s problems.”
Ukraine war cuts global growth prospects by 1% (UNCTAD)
The UN’s trade and development body has downgraded its global economic growth projection for 2022 to 2.6% from 3.6% due to the Ukraine war and to changes in macroeconomic policies made by countries in recent months. In an update to its Trade and Development report published on 24 March, UNCTAD says that while Russia will experience a deep recession this year, significant slowdowns in growth are expected in parts of Western Europe and Central, South and South-East Asia.
“The economic effects of the Ukraine war will compound the ongoing economic slowdown globally and weaken the recovery from the COVID-19 pandemic,” UNCTAD Secretary-General Rebeca Grynspan said.
“Many developing countries have struggled to gain economic traction coming out of the COVID-19 recession and are now facing strong headwinds from the war. Whether this leads to unrest or not, a profound social anxiety is already spreading.”
Ukraine war risks further cuts to development finance (UNCTAD)
The financial fallout from the war in Ukraine could widen the already huge gap in financing needed to achieve sustainable development goals (SDGs) and lead to cascading credit downgrades and debt defaults in developing countries, UNCTAD said. The gap in financing needed to achieve SDGs, such as ending poverty and halting climate change, now sits at $17.9 trillion for the 2020-2025 period, new UNCTAD estimates show. This puts the current annual gap at $3.6 trillion – more than $1 trillion wider than before the COVID-19 pandemic – without even factoring in the effects of the Ukraine conflict. “We risk going from having a gap to achieve the SDGs to having an abyss,” UNCTAD Secretary-General Rebeca Grynspan said on 21 March as she opened a meeting on financing for development convened by the organization.
UN to debate how science and technology can boost COVID-19 recovery (UNCTAD)
Ministers, policymakers, heads of international organizations and leading experts will examine how science, technology and innovation can help the world recover better from the COVID-19 pandemic during 25th session of the UN Commission on Science and Technology for Development from 28 March to 1 April in Geneva and online. The sessions will focus on the themes of “Industry 4.0 for inclusive development” and “Science, technology and innovation for sustainable urban development in a post-pandemic world”.
She added: “Developing countries need more opportunities to participate in international research networks, increased funding for research and more support for technology upgrading and transfer, particularly in support of post-COVID-19 recovery efforts.”
South-South knowledge sharing is one of the best approaches we have at our disposal to build capacities, as it draws on what has proven to work in improving people’s lives, for the benefit of others. China’s experience of eradicating extreme poverty, which is the fastest poverty reduction in human history according to the World Bank, offers inspiration to all developing countries. Leveraging digital economy has been an important element leading to that success. This is because E-commerce has been associated with the expansion of employment opportunities, particularly for micro, small and medium enterprises (MSMEs), women and youth, with transformative impact to all sectors including the informal sector. This became more relevant than ever during the COVID-19 pandemic. Indeed, amid the COVID-19 crisis, e-commerce is on the verge of exponential growth in most countries in the Global South. There are also signs that the platform economy has already taken root in low-income countries.
Mobile data costs have increased, making internet connectivity unaffordable for many (World Wide Web Foundation)
According to an analysis conducted by the Alliance for Affordable Internet (A4AI), 1GB of mobile broadband data became less affordable in 2021 than the previous year. Between 2020 and 2021, the median cost of 1GB of data as a percentage of average monthly income increased 13% in the 93 countries studied by A4AI in both years.
The economic crisis triggered by Covid-19 reduced gross national income in many countries around the world. This reduced the affordability of 1GB of mobile broadband in 2021. Affordability is expressed as the price of data as a share of gross national income. In 2021, the change in income outweighed the price change. Suddenly, customers in low and middle income countries had less income available, making the prices less affordable.
Closing the Gender gap through financial inclusion (ITC)
The International Trade Centre (ITC) and the International Islamic Trade Finance Corporation (ITFC) hosted a joint event at Dubai Expo 2020 in March 2022 to explore possible solutions for closing the gap in access to finance for women entrepreneurs in developing countries. In her opening remarks, Pamela Coke-Hamilton, Executive Director of the International Trade Centre (ITC) said that investing in women is essential to supporting global recovery efforts. “According to the International Finance Corporation, more than 70% of women-owned small businesses do not have access to financial services, and the existing gender capital gap is estimated to be $300 billion,” she said.
“Over 50% of women in developing countries seek entrepreneurship as a path to a better future, compared to about 25% in high income countries,” said Iva Hamel, World Bank Resident Representative to the United Arab Emirates.
For this reason, several initiatives to support women’s access to finance were launched, such as the Women Entrepreneurs Finance Initiative (We-Fi) managed by the World Bank, that scales up women’s access to financial products and services, builds capacity, offers networks and mentors, and provides opportunities to link to domestic and global markets.
Agriculture negotiators chart path towards MC12 (WTO)
The chair reported on her recent consultations with WTO members. With the clarity provided by the new dates for MC12, and bearing in mind the continuation of the COVID-19 pandemic and the conflict in Ukraine, she asked members to reassess the format and substance of the negotiations in preparation for the work ahead. “Preserving a well-functioning rules-based multilateral trading system and finding ways to make a meaningful contribution to agriculture and food security is more important than ever,” said the chair.
Domestic support to the farm sector remains a high priority for the membership, and many trade officials renewed calls for addressing trade-distorting domestic support.
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Local news
South Africa takes massive digital leap forward, says Ramaphosa (Engineering News)
Last week, government concluded the auction of high-demand spectrum for mobile telecommunications – a significant milestone in the reform agenda and one that is expected to drive growth and transformation in the country’s economy, President Cyril Ramaphosa writes in his weekly newsletter to the nation. “The licensing of spectrum is one of the major reforms that we are implementing to modernise and transform key network industries such as energy, telecommunications, transport and water provision.
BLSA wishes to see more regulatory change announcements at investment conference (Engineering News)
Business Leadership South Africa (BLSA) CEO Busi Mavuso says this year’s South Africa Investment Conference must be turned on its head and instead of the private sector announcing big projects, the organisation hopes government will announce regulatory changes that advance the case for investment. Investment conferences have historically seen private sector companies cajoled into announcing multibillion-rand projects, which are good and well, but these are not necessarily additive, since many of them would have happened anyway, she notes in her weekly newsletter.
SA exporters could profit from Europe’s war-affected pallet industry (TimesLIVE)
SA pallet exporters and packaging companies should be backed by the government to fill the gap in Europe created by the ongoing war in Ukraine. This is according to Mthobisi Zondi of PalletBiz, which produces 150,000 pallets a year, of which 40% is exported to Mozambique and other neighbouring Southern African Development Community (Sadc) countries. Zondi said countries such as Italy and Hungary are dependent on timber from Ukraine and the lack of supply presents an opportunity for SA’s pallet manufactures, timber suppliers and packaging companies as potential alternative suppliers to these countries. “The direct affect on SA supply of pallets and packaging is a positive one, depending on how swiftly local companies secure supply contracts with affected EU countries,” he said.
Inside the oil storage facility… interrogating the necessity of a billion-dollar project (New Era)
Namibia’s national oil storage facility, one of government’s biggest investment projects, hogged the headlines for a massive escalation of the cost of construction. Last week, New Era embarked on an exclusive site visit to see firsthand what the completed and fully operational multi-billion-dollar facility offers the nation. The National Petroleum Corporation of Namibia (Namcor) was appointed by government to manage and operate the national oil storage facility (NOSF) in Walvis Bay. Government constructed the facility to increase Namibia’s security of supply of fuel and petroleum products from a concerning seven to 10 days to a more manageable 30 days or more.
Initially estimated to require a capital investment of less than N$3.7 billion, the NOSF was finally constructed at a total cost of N$6.5 billion, to replace the old oil tanker berth in Walvis Bay, which is over 50 years old and has outlived its design life. This massive escalation in capital investment has raised eyebrows for which numerous variations to the initial project scope and drastic deterioration of the exchange rate have been accused of being the main culprits.
The old oil berth currently poses a serious fire and environmental hazard to the entire Port of Walvis Bay and any incident there would result in an acute shortage of fuel in the country, resulting in overly drastic price escalations. Unfortunately, an upgrade of the old oil tanker berth was not in accordance with the Namport’s approved port masterplan, which meant a new facility had to be built that would form part of phase 1 of the envisaged SADC gateway port.
Can Namibia Avoid the Resource Curse? (Foreign Policy)
As oil and gas prices surge following sanctions against Russia, Africa may be well-positioned to become a global energy production hub. But a large majority of African countries are feeling the economic pain as net importers. This has prompted governments to begin accelerating oil and gas exploration. One of the biggest oil and gas discoveries on the continent was made last month by TotalEnergies and Shell off the coast of Namibia. It is thought the offshore deposits could hold about 3 billion barrels of oil in total and provide an estimated $3.5 billion annually in royalties and taxes for the Namibian government. But Namibia’s energy ambitions clash with a global export market that is increasingly opposed to fossil fuel investments. In neighboring South Africa, legal action led to a temporary blocking of seismic hydrocarbon searches while activists lobbied against an East African crude oil pipeline that will run from oil fields in Uganda to a port in Tanzania.
However, the most controversial development is in the northeastern Okavango Basin, where Canadian firm ReconAfrica is in conflict with local communities that say they were not adequately consulted about exploratory drilling—claiming environmental damage.
Instability in oil-producing states like Nigeria, Angola, and Mozambique has contributed to human rights violations, theft, environmental devastation, and major security issues—a phenomenon Namibians fear. “Everywhere, there are minerals; there are wars,” Shikongo said, particularly when communities remain impoverished. Namibians hope that their government learns from the experience of Africa’s biggest oil producer, Nigeria, and ensures the entire population benefits rather than a small elite.
Inside new plan to put Sh32bn port terminal in private hands (Business Daily)
The Kenya Ports Authority (KPA) has settled on a Swiss firm to run Mombasa port Container Terminal 2 (CT2) to fulfill a loan facility requirement for the construction of the largest cargo handling facility. The Mediterranean Shipping Company (MSC), the second global largest shipping line after Maersk, is set to play a critical role in the running of the Sh32 billion CT2 through the Kenya National Shipping Line (KNSL).KPA, MSC and KNSL have made a request to the Common Market for Eastern and Southern Africa (Comesa) Competition Commission as they seeking regulatory approval for the transaction that they said would give MSC and KPA joint control of KNSL.
“KNSL will, as part of the joint venture, become the new operator of the Mombasa Container Terminal 2 (CT2) at the port of Mombasa in Kenya and commence offering freight forwarding services and container liner shipping services,” said the Comesa competition watchdog in a call to the public to give comments on the transaction. It has given players up to March 22 to give submissions on the transaction.
Horticulture sector sets sights on nine new export markets (Business Daily)
Horticulture exporters are seeking new markets in nine countries as the sector aims to reduce its reliance on the European market and raise earnings. Through the National Horticulture Taskforce, exporters are targeting the China, Australia, US, Russia, Canada, UAE, Japan, Malaysia, and Turkey markets. The task force said it will also seek to increase the use of sea freight to supplement air freight amid logistical challenges and high rates charged by air cargo operators. “We are looking at diversifying because we believe as much as we need to maintain the European market we need to open up new markets,” said Clement Tulezi, CEO of the Kenya Flower Council (KFC) and chairman of the task force. “We have aligned our plans and identified nine countries where we need to engage and push our export volumes to diversify away from Europe. We are not saying we are leaving Europe. It remains our major market. We want to maintain it and also make inroads into other markets.” The task force includes producers of cut flowers, fruits and vegetables and herbs and spices, trade and agriculture ministries.
Higher production fails to tame high sugar prices (Business Daily)
The retail price of sugar remains high despite an increase in local production of the commodity and continued imports to cover the domestic deficit. Sugar prices on the shelves are retailing at between Sh250 and Sh260 for a two kilogramme packet depending on the brand, which is higher than the Sh230 that the same quantity fetched in December. Sugar production meanwhile jumped 11.7 percent to 64,839 tonnes in January compared to 58,044 tonnes in the same month last year. Imports in January stood at 18,000 tonnes, helping to supplement the increased local production. “In January 2022, total sugar production was 64,839 tonnes compared to 58,044 tonnes produced in January 2021, giving an increase of 11.7 percent attributed to improved availability of cane in all sugar zones,” the Sugar Directorate said in its January report.
The price of the commodity started rising in November last year when operations in a number of factories in western Kenya were disrupted. The rising prices come at a time when the country has limited cheap imports from Common Market for Eastern and Southern Africa (Comesa) to protect growers from the competition.
The National Treasury last year limited imports to 210,163 tonnes in the new quota rules to traders of the commodity from the usual 350,000 tonnes that the country is normally allocated under the Comesa window. Kenya is a sugar deficit country and relies mainly on imports to meet the local demand that has been growing over the years.
Treasury prepares to slash M-Pesa charges (Business Daily)
The Treasury is working on a proposal to cut M-Pesa transfer charges in a move that looks set to hurt Safaricom’s #ticker:SCOM revenues from a service that makes more money than voice. Treasury Cabinet Secretary Ukur Yatani told the Senate that there was need to make M-Pesa cheaper at a time when the mobile money platform has become deeply entrenched in Kenyans’ business and daily lives. The push to review the charges will add to the battles that Safaricom is facing over its dominance, including the move to cut calling rates and calls to have it broken up and forced to run M-Pesa as a separate business from the telecoms service. M-Pesa accounted for about 99.9 percent of the value of mobile money transactions, underlining the entrenchment of the platform in Kenya’s economy.
Trade deal to lift SMEs on Ethiopia, Kenya border (Business Daily)
Small-scale trade along the Kenya-Ethiopia border has received a major boost after the two countries agreed on a common list of products to be traded under the Comesa Simplified Trade Regime (STR). The negotiations that took place at the Moyale border post, addressed implementation of the STR between the two countries. The STR was launched in 2010 to enable small-scale traders benefit from Comesa trade liberalisation programme by simplifying and formalising trade. The meeting was part of the implementation of a 15 million euros Cross-Border Trade Initiative, financed by the European Union under the 11th European Development Fund (EDF). Its objective is to facilitate small-scale cross-border trade among the targeted countries. According to experts, effective implementation of the STR spurs growth, and enhances agriculture through value addition and processing, thereby creating jobs and increasing household incomes. Comesa director of trade and customs, Christopher Onyango said simplification and formalisation of cross-border trade will help the region empower women and youths, who make up 70 percent of the traders.
Ethiopia moves to allow entry of Kenyan banks (The East African)
Ethiopia has constituted a committee to liberalise the banking sector, taking a major step in opening the door for Kenyan lenders such as KCB Group to set up operations in the populous nation. The committee has already started work to amend Ethiopia’s half-a-century old financial code, local reports said meaning the long-awaited easing of restrictions on foreign banks making investments in Ethiopia has inched closer. A new code guiding the country’s banking sector will allow the opening up of the financial sector, the head of the committee was quoted saying. Business Daily learnt that the committee’s work plan states the first draft of the financial services code must be ready by December 2022.
“The new code is necessitated to cope with the new direction the economy is going in. This includes a capital market and opening up of the economy for foreign players,” Mr Alemante was quoted saying by Ethiopian publication The Reporter.
Checkpoints increase to 80 on Tema-Paga corridor (Graphic Online)
It has emerged that attempts to stamp out red tapes and cut down illegal checkpoints on the country’s trade corridors are yielding less results than previously reported.
This is because checkpoints of the various security agencies on the 766 kilometres road have risen from 61 in November 2017 to 80 in the second week of March, this year.
A recent fact-finding and advocacy trip on the Tema-Paga corridor by the Ghana Shippers’ Authority (GSA) showed a rather disturbing springing up of checkpoints by Police, Customs, Immigration, Forestry and Axle Load officers.
Information gathered further showed the Police was leading with 56 stops, followed by Customs with 10 checkpoints, seven Axle Load stations, Immigration with four checkpoints and three Forestry barriers.
Nigeria eyes $2.6tr halal trade with product certification scheme (Daily Trust)
The federal government has inaugurated a committee that would create a process of certifying halal products made in Nigeria to reap from the $2.6 trillion global halal market. The Minister of State, Industry, Trade and Investment Amb. Mariam Y. Katagum, while inaugurating the technical committee yesterday in Abuja, said that was to allow Nigeria to benefit from the global halal global trade.
She stated that halal certificates would guarantee that products and services meet the requirements of Islamic law and are suitable for consumption.
Be abreast of trade terms to benefit from AfCFTA – AGI (GhanaWeb)
The operators of small-scale businesses have been advised to study the terms of trade engagements to enable them to enjoy the full benefits of the African Continental Free Trade Area (AfCFTA. Mr. Kwasi Nyamekye, the Association of Ghana Industries (AGI) Chairman for the Ashanti, Bono, Bono East and Ahafo Regions has advised. ‘‘As it stands now most of the local businesses have little knowledge on AfCFTA, so we need to sensitise them to understand the opportunities and dangers associated with the Trade Area because it is not all that rosy’’, he indicated.
COMESA boss tips Malawi over TFTA ratification (Zambia Daily Mail)
COMMON Market for Eastern and Southern Africa (COMESA) Secretary General Chileshe Kapwepwe has urged Malawi to expedite the process of ratifying the Tripartite Free Trade Area Agreement (TFTA). The trade agreement will facilitate free movement of goods, services and business persons among COMESA member states in a quest to stimulate economic activities. Zambia ratified the agreement last year but 14 endorsements are needed to enforce it. So far, 11 countries have ratified the agreement, which brings together 28 countries with a population of over 700 million and a combined gross domestic product of US$1.4 trillion. Ms Kapwepwe said Malawi signed the agreement on June 10, 2015 but has not completed the ratification process.
Cameroon Blames War Between Russia and Ukraine for Wheat Shortage (VOA)
Cameroon’s government says Russia’s war on Ukraine is responsible for a wheat shortage that has led to a 40 percent increase in the price of bread. The central African state is encouraging local substitutes like cassava and yams to replace the wheat usually imported from Russia and Ukraine. More than 40 consumers are waiting for bread Monday morning at the La Mama bakery in Mokolo, a neighborhood in Cameroon’s capital.
Youssoufa Daouda, who sells bread at the bakery, said in the past two weeks the bakery has served less than 200 of its usual 500 daily customers. He said importers informed bakers in the first week of March of a potential shortage of wheat in Cameroonian markets because countries that supply wheat to Cameroon were at war. Cameroon says 13 million of its 26 million citizens who consume bread daily no longer have a regular supply.
In CAR farmers plant maize and harvest peace (Trade for Development News)
In the Central African Republic (CAR), fresh maize cobs take on a deep yellow colour, almost orange. For farmers in a country plagued by conflict and food insecurity, these cobs are a ray of hope. Maize and other crops can only be grown in areas that are safe enough to farm. Elsewhere, armed groups often storm fields and burn them along with farmers’ granaries. Maize fields in communities less affected by conflicts are therefore treasured as they bring food, income – and peace. The district of Mboko-Landja in the south of the country is one such lucky area where communities can live off the land. This is a privilege in CAR which is currently facing a food crisis. According to the UN, humanitarian needs in the country are at their highest level in five years. The resurgence of armed violence and the recession of the economy have left six out of every 10 citizens, or 3.1 million people, in a state of great vulnerability. Supporting farmers and agricultural cooperatives in a post-conflict context is not what funders of international aid often consider a safe bet. But turning swords into ploughs can pave a sustainable path out of conflict for communities, as results from a project supported by the Enhanced Integrated Framework in four districts of the country show.
Mauritius signs agreement with Dubai Chamber of Commerce to strengthen bilateral economic relations (ZAWYA)
Amid a successful presence of Mauritius in Expo 2020 Dubai, Economic Development Board (EDB) Mauritius has signed a Memorandum of Understanding (MoU) with the Dubai Chamber of Commerce and Industry to boost bilateral trade and investment opportunities across strategic sectors. As part of the agreement, EDB Mauritius will establish a representative office within the premise of Dubai Chamber of Commerce and Industry for an initial period of two years. The key objectives of the EDB Dubai Office will be to identify trade and investment opportunities which will benefit UAE and Mauritian businesses with a specific focus on the Financial Services, ICT, Manufacturing, Healthcare, Logistics, Ocean Economy, Renewable Energy and Property Development sectors.
Both parties have committed to establishing a framework for developing stronger business relations and cooperation procedures to enhance the achievement of their respective economic objectives and create new channels of business exchange. The MoU also aims to strengthen institutional relations and capacity building through cooperation, exchange of information and exchange of best practices.
The agreement lays the groundwork for developing stronger business relations and create new channels of business exchange, H.E. Al Ghurair explained, describing the strategic move and signing as important developments that will take Dubai’s trade relations with Mauritius to the next level and create many bilateral business opportunities.
African trade news
DRC finally joins EAC next week, three years after formal application (Business Daily)
The Democratic Republic of Congo will officially join the six-nation East Africa Community (EAC) Tuesday next week, adding its more than 90 million market population to the regional trading bloc. The EAC Secretary-General Dr Peter Mathuki confirmed that the populous country will be admitted into the bloc on March 29 after approval by Heads of State Summit, nearly three years after making a formal application in June 2019. “We are in receipt of a letter dated 18th March from the chairperson of the Council of Ministers informing the Secretariat of the convening of an extraordinary summit on the admission of the DRC into the EAC on 29th, March 2022,” said Dr Mathuki in a letter to ministers in charge of the EAC docket in member states.
The mineral-rich country already has established trade ties with most of the EAC member states through bilateral deals and at multilateral level where it is affiliated to Southern African Development Community (SADC) where Tanzania is a member. DRC is already a key African market for Kenyan firms with the latest official annual data showing exports earnings from DRC amounted to Sh14.3 billion in 2020 — only dwarfed by Uganda, Tanzania, Rwanda, Egypt and South Sudan.
“Its rich appetite for agricultural produce shall enable local manufacturers to expand their volume of exports to the country,” Mr Mucai Kunyiha, the chairman of the Kenya Association of Manufacturers, told the Business Daily earlier this month.
“With enhanced access to the DRC market, the volume of these exports is expected to rise in the near term, and pave way for more products.”
Decision on EAC common external tariff pushed to April (The New Times)
Top officials from regional ministries in charge of trade, industry, finance and investment on Monday, March 21, could not reach consensus over the EAC maximum Common External Tariff (CET) rate, sources say. The matter was thus forwarded to the six-member bloc’s Council of Ministers which, sources say, is set to be held sometime mid next month. The senior officials were meeting to deliberate on the analysis done by the EAC Secretariat on the implications of maximum CET rates of 30%, 33% and 35%.
Kenya and Tanzania propose the regional common external tariff rate be set at 33 per cent, while Rwanda and Burundi want 30 per cent and Uganda wants 35 per cent. South Sudan – which is not yet integrated into the bloc’s Customs Union – has not been involved in the discussion yet.
On Monday, John Bosco Kalisa, CEO of the EABC who attended Monday’s virtual meeting, told The New Times that: “EABC has also maintained its position of 35% in view of promoting industrialisation and growth of intra-regional trade as the only avenue to generate prosperity and create meaningful and sustainable jobs for our young generation.” “The meeting for the Council of Ministers didn’t happen because two partner states were not present. We only had senior officials and permanent secretaries.”
Pan-African payment will take maximum of 120 seconds – PAPSS CEO (Businessday)
Before the introduction of PAPSS, can you give some insight into how intra African payments were executed, the level of efficiency and challenges?
The payment landscape today and before PAPSS has been layered on the principle of correspondent banking. This means that every commercial Bank in Africa develops a correspondent banking relationship with a Bank in the USA and Europe.
Transaction costs will be at the minimum in PAPSS because Afreximbank is empowered to put in place a payment system to facilitate the growth of intra-African trade
Afreximbank estimates that the African Market spends an estimated $5Billion through the correspondent banking system in terms of charges. The saving is estimated in several ways; the direct charges that economic operators pay at every touch point, the instant payments that reduce the delays and the cost in soliciting for hard currency. PAPSS does this through the instant payment system that reduces the delay, the reduced costs, and the payment in hard currency as well.
The 15th EAC Sectoral Council on Agriculture and Food Security (SCAFS) is currently underway at the Four Points by Sheraton in Dar es salaam, Tanzania.
Among the items on the agenda of the 15th SCAFS are the consideration of the reports on; EAC regional Food and Nutrition Security; progress in the implementation of previous Council and Sectoral Council directives; implementation of the EAC CAADP programme as well as harmonization of farm inputs; livestock, fisheries and aquaculture development.
“We have made a great stride in enabling good environment of the agricultural sector by ensuring availability and access to inputs; enhancing performances of agricultural value chains and agribusinesses and transformation of COVID19 lessons into opportunities”
EAC Deputy Secretary General (DSG) – Productive and Social Sectors, Hon. Christophe Bazivamo
The DSG pledged the commitment of the EAC Secretariat towards creating an enabling environment for development of the agricultural sector in the region, particularly catalysing increased agricultural production, and productivity to achieve nutrition and food security, to enhance performances of agricultural value chains and agribusinesses as well as promoting regional and international trade of agricultural produce.
The Africa Investment Forum: catalyzing financing for game-changing Abidjan-Lagos highway project (AfDB)
The construction of the 1,081-kilometer Abidjan-Lagos highway will have a significant impact on the economies of five West African countries - Côte d’Ivoire, Ghana, Togo, Benin and Nigeria. Valued at $15.6 billion and led by the Economic Commission of West African States, this transformative public-private partnership project was the largest investment opportunity showcased at the Africa Investment Forum virtual boardrooms held from 15 to 17 March 2022.
EAC takes over 25% of investment attracted at Africa Investment Forum (The New Times)
East African member states are expected to benefit from at least $8.77 billion worth of investments out of $32.8 billion drawn at the Africa Investment Forum. This is according to the President of the African Development Bank Group Akinwumi A. Adesina, who said that over 500 project sponsors, investors, deal brokers and government representatives had taken part in the three day event. In EAC, the deals range from transport, healthcare, energy, and agriculture among other sectors. In particular, the largest deal inked during the forum is the $3.3 billion railway corridor that will run from Dar es Salaam through Bujumbura to Kinshasa in DR Congo, with an extension to Kigali, which will be done as a public-private partnership project.
East African member states are expected to benefit from at least $8.77 billion worth of investments out of $32.8 billion drawn at the Africa Investment Forum. This is according to the President of the African Development Bank Group Akinwumi A. Adesina, who said that over 500 project sponsors, investors, deal brokers and government representatives had taken part in the three day event. In EAC, the deals range from transport, healthcare, energy, and agriculture among other sectors. In particular, the largest deal inked during the forum is the $3.3 billion railway corridor that will run from Dar es Salaam through Bujumbura to Kinshasa in DR Congo, with an extension to Kigali, which will be done as a public-private partnership project.
East African member states are expected to benefit from at least $8.77 billion worth of investments out of $32.8 billion drawn at the Africa Investment Forum. This is according to the President of the African Development Bank Group Akinwumi A. Adesina, who said that over 500 project sponsors, investors, deal brokers and government representatives had taken part in the three day event. In EAC, the deals range from transport, healthcare, energy, and agriculture among other sectors. In particular, the largest deal inked during the forum is the $3.3 billion railway corridor that will run from Dar es Salaam through Bujumbura to Kinshasa in DR Congo, with an extension to Kigali, which will be done as a public-private partnership project. Adesina said that there is lot of political support and goodwill for the project.
“This is all part of improving the regional integration, and also accelerating the Africa Free Trade Area. It is going to drive down the cost of moving things,” He added.
Africa Oil Week and Green Energy Africa Summit returns in Cape Town in 2022 (Oil Review Africa)
Africa Oil Week (AOW), the continent’s one of the leading energy conferences, will run in Cape Town to bring leading energy stakeholders together from 3-7 October in Cape Town under the theme ‘Sustainable Growth in a Low Carbon World’
Annually, Africa Oil Week attracts more than 2,000 C-Suite executives, more than 50 ministers and government leaders and global energy leadership to drive transaction and investment with the African oil, gas and energy sectors.
“Africa Oil Week will continue to advocate and support the sustainable development of the continent’s hydrocarbon sector, whilst Green Energy Africa Summit will facilitate deals, transactions and partnerships across the African power sector to provide energy access for all. Our aim is to bring the right people together to facilitate Africa’s future economic prosperity and upliftment via the Hydrocarbon sector at Africa Oil Week and energy access for all at Green Energy Africa Summit,” said Paul Sinclair, vice-president energy.
“Africa needs mixed energy solutions to meet demand and improve the livelihood of millions of citizens. We foresee that hydrocarbons, as well as renewable energy solutions, will be a force multiplier for the continent. Hence Africa Oil Week and the Green Energy Africa Summit will be hosted alongside each other,” added Sinclair.
Adesina to Visit South Africa for Trade, Investment Talks (Business Post Nigeria)
When it comes to building the future of energy in Africa, the decisions facing the continent’s leaders today are nothing less than of historical importance. More than anything else, energy systems are the very fabric of business and society. Countries across Africa want to make good on their objective of building huge amounts of new generation capacity to anticipate vast increases in energy demand and set the continent on the path of growth and development it deserves. Africa knows where it needs to go. The big question is how. And more specifically: what is the most cost-effective energy mix that can be built to deliver all the new electricity capacity that is needed? Wind, solar, gas turbines, coal, gas engines… numerous options are available, but there is only one sweet spot.
When it comes to the choice of energy technologies, keeping an open mind, free from preconceptions, is paramount. Technologies that can be right for Europe considering its existing infrastructure, population density, or natural resources, can be wrong for others. Each country, each region, must find its own optimal way to build its energy system.
Many African countries have however one important point in common: maybe more than anywhere else, the models indicate that the best path to building the most cost-optimal energy system is to maximize the use of renewable energy.
Ukraine war threatens food crisis and political upheaval across Africa, warns top economist (AfDB)
The war in Ukraine threatens to lead to food riots, political upheaval and turn back the clock in years of progress in Africa, the continent’s top economist told The Telegraph. “This war has to come to an end. It’s not just a war in Ukraine. It’s a war that has global ramifications,” Dr Akinwumi Adesina, President of the African Development Bank, told The Telegraph. “The price of wheat has gone up by 62 per cent [since the beginning of the war]. The price of maize has gone up by 36 per cent. The price of soya beans by 29 per cent. Now the price of fertilisers, which are very, very critical for food productions, has gone up by 300 per cent – that’s three times.” “And when you couple that with energy prices that are also rising in many African countries, you can see that this is driving inflation. If urgent action is not taken, it could lead to a food crisis in Africa.”
Dr Adesina said that Covid-19 lockdowns across the continent and a climate change-induced drought across eastern Africa had already severely damaged food production and that the rapidly rising food prices were throwing regional governments a curveball. Ukraine and Russia export about 25 per cent of the world’s wheat, while together, both countries make up about 80 per cent of the world’s sunflower oil trade. Africa relies heavily on both countries for food imports – countries like Benin, Somalia, Tanzania, Sudan, Democratic Republic of Congo and Egypt get more than 50 per cent of their wheat imports from Russia and Ukraine.
AfDB Group Approves New Strategy for Addressing Fragility and Building Resilience in Africa (Proshare Nigeria)
The Board of Directors of the African Development Bank Group has approved a new strategy for addressing fragility and building resilience in Africa for the period 2022-2026. The strategy offers a roadmap for building more resilient institutions, economies, and societies across the continent over the next five years. This is the Bank’s third fragility and resilience strategy, built upon previous strategies in 2008 and 2014. It draws on lessons learned from the Bank’s 20-year engagement on fragility in Africa and its increasingly sophisticated understanding of its drivers. The strategy has been informed by extensive consultations with partners and stakeholders, and identifies three interconnected and mutually reinforcing priorities, namely: strengthening institutional capacity, building resilient societies and catalyzing private investment. “These priorities have clear synergies with many of the Bank’s existing sectoral and thematic strategies, including the Strategy for Economic Governance in Africa, the Private Sector Development Strategy, and all the High 5 priorities”, said Dr. Yero Baldeh, Director of the Transition States Coordination Office.
Mobile commerce in Africa: Growth, opportunities and challenges (African Business)
A report by the UK’s Department for International Trade (DIT) has highlighted the immense potential for mobile commerce in Africa and its ability to contribute to the economic transformation of the continent. The report Towards A Flourishing Digital Economy for All – A Spotlight on Africa, which was launched at a thought leadership breakfast on the sidelines of the 2022 Mobile World Congress in Barcelona, was prepared in partnership with Mobile World Live and examines the various challenges and opportunities around the sector in emerging markets, particularly in Africa.
The UK is keen to work with countries across Africa to boost digital trade and in 2019, set out a broad range of shared priorities with the African Union. Since then, the UK has supported projects in countries such as Côte d’Ivoire and Uganda to the tune of some £2bn ($2.6bn) to enhance digital trade.
At the UK-Africa Investment Summit in 2020, the UK further committed to building a business support trade to boost trade between it and Africa. It has built a digital gateway to connect UK and Africa and also provide support in terms of trade, finance and investment.
Presenting an overview of the report, Mike Short, chief scientific adviser at the UK’s Department for International Trade, revealed that the volume of e-commerce is expected to rise from $3.3 trillion as at 2019 to $7.4 trillion by 2025. Of this, only $180bn was generated in Africa, which shows that there is room for growth on the continent.
Council Post: New Opportunities In Africa For European Businesses (Forbes)
At the recent European Union meeting in Brussels with African leaders, the mood was optimistic. While accusations of unfair vaccine distribution linger, the overall mood was dominated by the European Union’s new Global Gateway patchwork of initiatives. These lavish funds on long-term issues for the EU, including a better relationship with the African continent. While pledging various things to Africa is as much a staple of Western politics as kissing babies, there is every reason to be cautiously optimistic regarding the trajectory of relations, including business opportunities. In particular, trade relations may see their own heyday, which may translate into significant business opportunities for the EU.
The reasons optimism may be warranted can be boiled down to three factors. None change the tide in and of themselves, but in aggregate, they may precipitate an underlying phase shift in relations that brings new opportunities.
IFC, African, European institutions Launch AforE to support private sector growth in Africa (Ahram Online)
AforE aims to support the private sector, entrepreneurship, and the growth of small- and medium-sized enterprises (SMEs) across the continent, the IFC said in a press release. The alliance was first announced at the Summit on Financing of African Economies in Paris that was held in May 2021. It will combine and focus technical and financial tools with a mission of improving Africa’s business environment as well as shoring up the growth and success of SMEs, women in business, and young entrepreneurs, according to the IFC. AforE’s core members include the African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the European Development Finance Institutions (EDFI), the French Treasury, the IFC, and Proparco — the private sector financing arm of Agence Française de Développement Group (AFD Group). “The launch of the alliance comes as African economies recover and rebuild from the effects of the COVID-19 pandemic, with small businesses seen as important drivers of job creation, innovation, and the delivery of essential goods and services,” said the IFC.
“Small businesses and entrepreneurs in Africa are drivers of inclusive growth, economic stability, and resilience. Supporting their growth will be critical to creating jobs and helping Africa recover from the COVID-19 crisis. And the Alliance for Entrepreneurship in Africa stands ready to do that.
Arab-Africa Trade Bridges (AATB) Board of Governors Meeting Concludes with Way Forward to Drive Trade and Investment Flows (African Business)
The 3rd Annual Board of Governors (BoG) Meeting of the Arab-Africa Trade Bridges (AATB) Program recently held in Cairo, Egypt, chaired by Dr. Hala ElSaid, Minister of Planning and Economic Development, convened all partners, strategic stakeholders, and public and private sector players in the Program to reinforce the role of regional value chains across Arab and Africa states in support of the AfCFTA. The landmark event included a round table discussion on the role of the AATB Program in the implementation of the AfCFTA across both regions. Notably, a memorandum of understanding was signed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Afreximbank. This agreement lays out a dedicated program that will focus on risk sharing, credit enhancement for export and import financing, supporting the bank’s digitalization transformation, capacity building and marketing.
“A vital role of the AATB Program is promoting regional and continental trade and investment cooperation between Egypt, Arab countries, and African countries. The Program promotes critical areas such as capacity building programs to support women in trade, supporting SMEs, and exporters, while addressing the negative effects of the corona virus on Arab and African economies through vital interventions in health and food security.”-said H.E. Mrs. Nevin Gamea, Minister of Trade and Industry of the Arab Republic of Egypt.
Promoting Economic Diversification in Africa Through Commercial Investment (Energy Capital & Power)
Towards the end of 2021, China offered insights into the future of its position on the African continent, illustrating significant shifts in its planned activities in agricultural assistance, climate initiatives, health services, peace and security incentives, trade promotion, and, most notably, infrastructure investment. Having reduced the number of committed projects from 50 in 2018 to 10 by 2021 – representing an 80% decrease – the shift from infrastructural development represents one of the most significant changes in China’s engagement with Africa in the last decade. Beijing, however, has been notably vocal with regards to the immense trade deficit in Africa, and has sought to increase trade with the continent, with aims to increase imports from Africa to $300 billion over the next three years.
Empowering the Pan-African Parliament to amplify the voices of the African citizens: PAP Day commemoration (African Union)
The Pan-African Parliament (PAP) commemorated 18 years since its inauguration as the first legislative body of the African Union on the 18th of March 2004. The commemorative event was held during the “PAP Day”, a day marked on every 18th March to serve as a reminder to African citizens of the potential of the Parliament, intended as a platform for people from all African states to be involved in discussions and decision-making on the problems and challenges facing the continent. The day is also meant to reminder African leaders of their commitment to empower the continental representation of the peoples of Africa. The 2022 PAP Day commemoration was convened under the theme: “Empowering the PAP to amplify the voices of the African citizens”.
Global economy news
WTO offers unique forum for dialogue on global supply chain issues — DG Okonjo-Iweala (WTO)
The WTO can play an important role in strengthening global supply chains and helping promote economic recovery from the COVID-19 pandemic and other global challenges, WTO Director-General Ngozi Okonjo-Iweala said at a Global Supply Chains Forum held virtually on 21 March. The Forum brought together WTO members and representatives from shipping, trading, express delivery and logistics companies to share perspectives on the causes of continued supply chain disruptions and to work together on ways to mitigate their impact on global trade and post-pandemic economic recovery.
Suez Canal says transit fees for ships will increase in May (AP News)
Egypt said Tuesday it will increase transit fees for vessels, including oil-laden tankers, passing through Suez Canal, one of the world’s most crucial waterways. The Suez Canal Authority said on its website it will add 15% to the normal transit fees for oil-laden and petroleum products-laden tankers, up from current 5%. It said the increases will take effect starting May 1, and could later be revised or called off, according to changes in global shipping. The new increase are amendments to surcharge hikes imposed in March on vessels passing through the waterway, the canal said. The canal said surcharge fees for chemical tankers, and other liquid bulk tankers will be hiked to 20% up from 10%, while laden and ballast dry bulk vessels will have their surcharges increase to 10%
About 10% of global trade, including 7% of the world’s oil, flows through the Suez Canal, which connects the Mediterranean and Red seas. For Egypt, the canal — which first opened in 1869 — is a source of both national pride and foreign currency. Authorities said 20,649 vessels passed through the canal last year, a 10% increase compared to 18,830 vessels in 2020. The annual revenues of the canal reached $6.3 billion in 2021, the highest in its history. The shipping industry is still under pressure from the pandemic, and Russia’s war on Ukraine also added to global economic concerns.
Building better apparel value chains in least developed countries (Enhanced Integrated Framework)
Apparel is a conventional starter industry for least developed countries (LDCs) that are working toward export-oriented industrialisation. However, LDCs that integrate apparel global value chains often fail to sufficiently develop backward linkages to the textile sector and create local value addition, moves that could spur economic, social and environmental improvements. In addition, the COVID-19-induced health and economic crises have led to one of the most challenging years on record for the global fashion industry and its supply chain, leaving vulnerable garment workers and firms in LDCs highly exposed to shocks. Building on an analysis of industry trends and three country case studies, this brief explores how LDCs can best reap the full and fair benefits from participation in apparel value chains as the global fashion industry recovers and evolves.
Promoting use of technology to tackle urban problems (UNCTAD)
More than half of the world’s population live in urban areas. By 2050, that figure is expected to rise to 6.5 billion people – two thirds of all humanity. The COVID-19 pandemic has exacerbated the sustainability challenges facing urban areas. For instance, the use of masks and other disposable plastics has significantly increased urban plastic pollution and inappropriate waste management practices. But rapid technological change opens new possibilities for innovatively addressing urban problems, at a lower cost and more sustainably. The 25th session of the UN Commission on Science and Technology for Development (CSTD) slated for 28 March to 1 April in Geneva and online will examine how to leverage science, technology and innovation for sustainable urban development in a post-pandemic world, among other topics. UNCTAD serves as the CSTD secretariat.
The OECD has released a proposal for a prototype of the Blue Dot Network certification framework for infrastructure projects that are economically, environmentally and socially sustainable, resilient, open and transparent. The prototype for the certification framework will be piloted on a number of infrastructure projects across different regions and sectors. The Blue Dot Network, founded by the governments of Australia, Japan and the United States, aims to support and attract quality infrastructure investment to help bridge the estimated USD 2.5-3.5 trillion infrastructure investment gap, accelerate the transition to global net-zero emissions, and optimise the strength and the quality of future growth.
“The world needs not just more infrastructure, but better infrastructure,” said Jose W. Fernandez, Under Secretary of State for Economic Growth, Energy, and the Environment, U.S. Department of State. “It must be transparent, inclusive, and sustainable to bring the economic benefits that our citizens deserve.”
Leading Innovation in Investment Dispute Resolution (World Bank Blog)
Foreign investment has long been recognized as a factor that catalyzes economic and social development. By bringing capital, technology and know-how across borders, foreign investment contributes to more productive and dynamic private sectors that create jobs and reduce poverty.
The World Bank supports its client countries to attract and retain foreign investment by advising on policies to expand investment opportunities, unlock private sector-led growth, and connect foreign and domestic investors. These efforts work in concert with the innovative financial products, political risk insurance and credit enhancement, and international dispute resolution services provided by the IFC, MIGA, and ICSID. Together, these institutions have served an extraordinary role in supporting a robust and engaged private sector in developing countries.
This focus on the private sector is especially critical today as countries recover from the pandemic. While foreign direct investment rebounded strongly in 2021, flows to developing countries—and particularly the poorest countries—have been more modest.
Rising prices increase alarm for food security and political stability (UNCTAD)
Prices for agricultural commodities were following an upward trend as a result of governments response to the Covid-19 crisis, e.g., fiscal stimulus in some nations, loose monetary policies, coupled with stockpiling and export restrictions by some countries. But the current conflict has sent prices up to new and perilous heights, even exceeding those observed at the beginning of the Arab Spring and the food riots that resulted in significant casualties in 2007-2008. The new price spike is a collateral damage of the ongoing war, which can compromise political stability and food security anywhere in the world.
Plastics dialogue launches three workstreams to advance discussions (WTO)
Participants in the Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (IDP) launched on 18 March discussions in three new workstreams to advance work on reducing plastics waste. This marks the first step in implementing the IDP Ministerial Statement announced in December 2021, said Australia, co-coordinator of the IDP.
The three workstreams, outlined in the IDP’s latest work plan, are intended to advance work on implementing the IDP Ministerial Statement, which sets out a roadmap for supporting global efforts to reduce plastics pollution and environmentally sustainable plastics trade. Each workstream will entail informal discussions and workshops to address specific topics in the Ministerial Statement.
Airlines revival gathers steam as more countries open skies (Business Daily)
The world is now largely open for travel with the countries relaxing Covid-19 restrictions as the virus moves into endemic stage as opposed to pandemic, coming as a major boost to airlines. The latest survey by International Air Travel Association (IATA) indicates that 25 of the top 50 countries for air travel, representing around 38 per cent of 2019 markets, were now open to fully vaccinated travellers without any quarantine or testing requirements. This is an increase from 18 markets that were in the same position in mid-February in an earlier survey done by the association. “About 38 markets representing 65 percent of 2019 international demand are open to vaccinated travellers with no quarantine requirements—up from 28 markets (50 percent of 2019 international demand) in mid-February,” said Willie Walsh, IATA’s director-general.
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Local news
Zim only processing two percent tobacco (The Herald)
Zimbabwe has earned US$245 million after exporting 48 000 tonnes of tobacco, as the country is only processing two percent of the leaf. The country has a capacity of earning US$15 billion per annum from tobacco exports but is currently only getting US$900 million. According to the latest Tobacco Industry and Marketing Board (TIMB) statistics, 47 598 tonnes of tobacco have been exported to different regions with the Far East taking the bulk of the golden leaf.
TIMB chief executive, Mr Meanwell Gudu, said there was need to invest in value addition for the industry and country to fully benefit from the crop. He also expressed concern over sustainability issues which he said could affect the markets if not adhered to. “While the tobacco industry has a potential value of US$15 billion from cigarettes export, only US$0,9 billion is currently being realised from leaf export,” said Mr Gudu. “We want our growers to use renewable sources of energy for curing tobacco. Our growers should not cut down indigenous trees for fuel wood for curing tobacco. Doing so is like robbing from our future generations.
Govt to restore viability of metal casting sector (The Herald)
Government says it is fully aware of the need to restore the viability of Zimbabwe’s metal casting industry to its former glory, as the sector has potential to drive economic recovery and growth. Finance and Economic Development Minister Mthuli Ncube, in a keynote address at the Zimbabwe Metal Casting Summit in Harare last week, said through the National Development Strategy 1 (NDS1) the Government had embraced and supported all initiatives that seek to promote beneficiation of local raw materials and building domestic capacity through upskilling of local artisans.
tool making and die casting, which are at the core of industry, enable the industry to make tools and parts for machines and once there is strong capacity to make tools, machine components, and spare parts, they can easily transition to the manufacture of whole machines. “Once we move up that value chain and can build machines, we can easily transition further to make and build industrial manufacturing systems. So in my view this is the right way to go,” the Minister said.
Kenya, US set for agriculture trade deals (Farmers Review Africa)
Kenya and US are set for agriculture trade deals. President Joe Biden’s top Agriculture minister said the US government will dispatch top agricultural officials and farmers’ representatives for a week-long trade mission in Nairobi later this year to scout for trade opportunities for American farmers and exporters.
The delegation comprising businesses, farm organisations, and teams from various agriculture departments in the US government are expected in Kenya from October 31 to November 3. US Secretary of Agriculture Tom Vilsack said the trade mission will connect Kenyan exporters and farmers with their US counterparts with a view “to expanding and diversifying global market opportunities for US agriculture.”
US firm backs Kenya’s law on waste recycling (Business Daily)
US multinational Dow Chemical, which produces key materials for manufacturing plastic packaging, has backed a proposal to compel companies to recycle materials. This follows draft laws by the Ministry of Environment and Forestry which is seeking stiffer penalties for polluting the environment. Dow Chemical East Africa, the producer of polyethylene which is used to make plastic packaging products ranging from clear food wrappers and shopping bags, says the new rules which will privatise the collection of plastic waste are timely. “The regulations are timely because the reality is that, for the longest period, everybody in the (plastics) value chain has been working in a silo,” Dow Chemical East Africa MD Leonard Kareko told the Business Daily in an interview. “This means if I am a manufacturer, I produce the resin and give it to the next person in the value chain, the brand owner puts the product on the shelf, you as a consumer buys and that’s the end of your responsibility.” The Sustainable Waste Management Bill 2021 compels users of plastic materials to separate garbage into organic, dry and special waste ahead of collection, failure to which they will be slapped with a Sh20,000 fine or up to six-year jail.
Kenya mulls tax hike on clinker after trade malpractices by firms (The East African)
Kenya is set to increase duty on imported clinker to rein in on unscrupulous cement manufacturers involved in trading malpractices. Nairobi says some errant cement companies have been abusing the low tax regime of 10 percent in the region and wants to discipline them through an increase in tax for imported clinker, which is a key ingredient in cement manufacturing. The specific duty to be charged is still subject to discussion among the East African Community states within the broad framework of the Common External Tariff (CET) reform programme. This latest development comes after Kenya rejected findings of a regional study to determine the quantity and quality of clinker.
“Some of these cement companies are importing clinker and the same companies are mining clinker and exporting it to neighbouring countries. So we need to come out together to discipline that behaviour because you cannot import a raw material and still at the same time export the same raw material,” Kenya’s Trade and Industry Principal Secretary Johnson Weru told The East African in an interview last week.
Anxiety grips importers months to Kenya’s election (The East African)
Importers are worried political tension in Kenya ahead of the August 9 elections may disrupt the supply chain and raise cost of transport with some ships reportedly avoiding Mombasa port for Dar es Salaam. Now the Shippers Council of Eastern Africa (SCEA) wants authorities to step in before things get out of hand and assure importers of security. “We have seen a decline of transit goods by eight percent in the first three months while there has been increase in cargo throughput at Dar port. Last year, Kenya increased transit cargo to Rwanda by 85 percent but this year we have seen a 35 per cent decline and if the situation is not controlled, we might record a slump due to rising political tension,” said SCEA chief executive Gilbert Lagat.
East Africa is served by two major corridors with the main one being the 1,700 kilometre Northern Corridor that runs from Kenya, to Uganda, Rwanda, Burundi and Eastern Democratic Republic of Congo. Due to rising political heat, importers might opt to use the 1,300 kilometre long Central Corridor serving Tanzania, Rwanda, Burundi, Uganda and Eastern DRC, with an exit and entry point at the port of Dar es salaam. Most of the importers in the region prefer Mombasa due to its efficiency and reduced number of border points. Currently, Mombasa handles 40 percent of DRC cargo and ferries eight million metric tonnes of Uganda cargo. Dar es Salaam has been making heavy investment to attract more cargo to its facility with Tanzanian government trying to woo more traders to ditch Mombasa port in its favour.
African shippers are currently experiencing challenges in liner services, with historic port bottlenecks now compounded by a surge in freight rates, making shipping operations difficult for many.
Diaspora remittances drop 5.1% in February on low season (The Star, Kenya)
Kenyans living abroad sent home $321.5 million (Sh36.6 billion) in February, 5.1 per cent lower compared to $338.7 million (Sh38.3 billion) in January. The Central Bank of Kenya (CBK) attributes the drop to seasonal factors. The weekly bulletin by CBK, however, shows the amount was 23.5 per cent more compared to the similar period last year where $260.3 million (Sh29.7 billion) was remitted back home. The cumulative inflows for the 12 months to January totaled $3.84 billion (Sh437.7 billion) compared to $3.15 billion (Sh359.1 billion) in the same period in 2021, a 21.4 per cent increase. The country has recorded the highest levels of diaspora remittances since last year despite the Covid-19 pandemic that has been crippling the global economy since late 2019.
This briefing reviews how far Tanzania has come in the AfCFTA negotiation and implementation process, considers the possible impact of implementing the AfCFTA and suggests a range of measures to help with implementation and promote more beneficial impacts. It identifies key priorities and needs for Tanzania in the negotiation and implementation of the AfCFTA for possible support from the UK Foreign, Commonwealth and Development Office (FCDO), through donor support programmes such as Supporting Investment and Trade in Africa (SITA). The analysis underpinning this briefing draws on in-country consultations with agencies and organisations in the public and private sector in Dodoma, Dar-es-Salaam and Arusha, and secondary data and literature reviews.
Tanzanian govt: Improve cargo handling (Dailynews)
WORKS and Transport Minister Prof Makame Mbarawa has tasked the newly inaugurated board of directors of the Tanzania Ports Authority (TPA) to work on ‘unbearable’ delays in handling containerized cargo vessels by Tanzania International Container Terminal Services (TICTS). The vividly irritated minister used most of his address to the new board showing his dissatisfaction with the performance of the TICTS which has been contracted by the TPA as one of the institutions to handle cargo at the Dar es Salaam Port. “TPA contributes about 37 per cent of the revenues collected by the Tanzania Revenues Authority (TRA). We have made appointments of the new members of the board with huge trust that you are going to raise the revenues. “The number of ships at the port has increased but they wait for so long at the Outer Anchorage before docking at the TICTS’s berths for offloading cargo,” Prof Mbarawa stated.
United Nations advises Zambia on domestic resource mobilization and curbing illicit financial flows (UNECA)
The United Nations Economic Commission for Africa (UNECA), through its Sub-Regional Office for Southern Africa (SRO-SA), based in Lusaka, Zambia and its Macroeconomics Governance Division (MGD), based in Addis Ababa, Ethiopia is collaborating with the United Nations Department of Economic and Social Affairs (UNDESA) and the United Nations Conference on Trade and Development (UNCTAD) to implement a project titled “Towards an integrated national financing framework (INFF)”, funded by the UN Development Account (UNDA) 13th tranche. Zambia is among the 10 target beneficiary countries of the project along with Burkina Faso in the African region.
The project aims at strengthening capacities in a set of developing countries to address gaps in the costing and planning of their financing needs to achieve the Sustainable Development Goals (SDGs) and their national development objectives, in addition to mobilizing domestic and external finance within their INFF frameworks. Zambia is currently in the process of preparing its Eight National Development Plan (NDP). In this context, the issue of mobilizing finance to achieve its national development objectives is timely and relevant.
In her opening remarks at the workshop, Ms Eunice G. Kamwendo, Director, ECA Sub-Regional Office for Southern Africa said that Illicit Financial Flows are a huge barrier to the achievement of the SDGs and other national priorities. She cited evidence from the work of the United Nations Conference on Trade and Development (UNCTAD) that shows that illicit financial flows contribute US $ 88.6 billion of capital flight annually from the African Continent.
“By reducing these outflows, Ms Kamwendo added, the African continent can raise the stock of capital available for businesses to build productive capacities and create jobs, which will translate to increases in tax revenues and improve the fiscal space of governments”.
Why Nigeria Must Sustain Economic Diversification, Other Policies (THEWILL NEWS MEDIA)
The admirable drive to diversify Nigeria’s economy, which has remained built around oil revenue since the discovery of crude oil deposits at Oloibiri by Shell-BP in 1956, is a constant feature of the campaign manifestos of politicians during and after elections. Over the years till date, receipts from crude sales have largely accounted for about 90 percent of the country’s foreign exchange earnings. Yet, beyond the whims and caprices of the political class of the day, the very real need for economic diversification is as pertinent in our contemporary existence as it has ever been previously. Over-reliance on oil revenue is not only inimical to the need to become a self-sustaining nation, but also ties the progress or otherwise of the country’s development to the unpredictability of a highly volatile oil and commodities market that is prone to rising and falling based on circumstances often dictated by global events beyond our control.
Despite several bold-faced attempts to reduce Nigeria’s reliance on oil through campaigns of economic diversification, backward integration and industrialisation, which have been supported with targeted loans, numerous reforms and sets of policy initiatives, oil remains the mainstay. As a result, billions of naira that could have been ploughed back into the economy for expansion and growth have whittled away through imports that created jobs for other economies instead of ours and further impoverished our citizens.
Therefore, to stem this tide, Nigeria must be serious with the implementation of the backward integration and diversification policies, as well as prioritise her structural industrialisation revolution.
How Nigeria Can Become A Leading Oil and Gas Supplier To The European Market (African Business)
Apart from retaining its position amongst the leading oil and gas producers in Africa in 2022, Nigeria, with over 37 billion barrels of crude oil reserves, has the potential to improve its energy exports to Europe and help address anticipated crude oil and natural gas shortages. With the European Union planning to ban crude oil imports from Russia by increasing trade with other non-Russian economies and the Russian government promising to cut gas supplies if sanctions from western countries continue, potential supply disruptions to Europe are anticipated. Accordingly, the west African country is expected to ramp up production in 2022 and retain its position as Africa’s largest crude oil producer, a development that will enable Nigeria to increase its energy capacity available for exports.
Nigeria’s annual crude oil production is expected to increase to 1.46 million bpd in 2022, following low production levels in 2021 that were driven by the COVID-19 pandemic. This will provide an opportunity for Nigeria to increase its exports to Europe, become a global energy hub and to fully make use of its hydrocarbon resources for economic growth. Nigeria heavily relies on its offshore projects to sustain crude oil production and supply, with 65% of the country’s total production in 2022 anticipated to come from such projects. However, this will change with Nigeria’s crude oil production anticipated to decline in 2023 onwards due to decreases in production in legacy fields. Nigeria will have to wait for deep water projects to come online to improve its production capacity, according to the African Energy Chamber’s (AEC) Q1 2022 Outlook.
Ghana Gas must sell LPG cheaper to help suffering Ghanaians – Energy Expert (3NEWS)
Energy Expert, Kwadwo Poku has urged the Ghana National Gas Company Limited to sell gas cheaper to Ghanaians in order to ameliorate their sufferings. In a statement, he explained that Ghana Gas gets the natural gas from Ghana’s Jubilee oil fields for free. Since 95% of this free product is sold to generate electricity, he said, one would expect the Liquefied petroleum gas (LPG) from Ghana Gas to be very affordable. This, unfortunately is not the case, Mr Poku stressed.
Debt to GDP crosses dreaded 80 mark (The Business & Financial Times)
The country’s public debt has now crossed the dreaded threshold of economies that can be classified as distressed, as data published by the Bank of Ghana shows debt to GDP is now 80.1 percent at the end of December 2021. According to the Summary of Economic and Financial data (March 2022), the total public debt has hit GH¢351.8 billion as of the end of last year, an increase by GH¢60.2 billion from same period in 2020.
Of the total public debt for December 2021, the external debt component is GH¢170 billion, which represents 38.7 percent of GDP, while that of domestic debt is GH¢181.8 billion.
Meanwhile, total revenue mobilised within the period stood at 15.4 percent of revenue, with tax rating registering a paltry 12.6 percent of GDP, far below the regional average. This essentially puts the country among others on the continent that is debt distressed, a situation the World Bank and International Monetary Fund (IMF) have, for some years now, warned will happen, if the right measures are not taken to deal with it.
Growing e commerce a catalyst for economic development (The Business & Financial Times)
The fourth industrial revolution, which is wholly anchored on technological advancement and innovation, opened up vast opportunities in different areas of economies around the world. Social, economic and commercial lives have seen remarkable developments with the rise of the Internet, technology and digitisation. In Ghana, the pioneering of mobile money in 2009 has been revolutionary in this regard.
The World Bank has recognised Ghana as the fastest growing mobile money market in Africa over the last 5 years. This growing trend of mobile money penetration has been a catalyst for a booming e-commerce industry in the country. The industry has been growing steadily over the past decade and has evolved over time to become the mainstay for many small and medium-scale enterprises (SMEs) in Ghana.
Aggregators will unlock agric’s potential under AfCFTA – Prof Asante (The Business & Financial Times)
The country can significantly maximise benefits under the African Continental Free Trade Area (AfCFTA) by promoting activities of agricultural aggregators – Professor Felix Asante, Pro-Vice Chancellor for Research, Innovation and Development-University of Ghana, has advocated. The country’s agriculture is predominantly small-scale in nature, with more than 60 percent of local food production coming from smallholder farmers. Despite this, farmers continue to face daunting challenges – ranging from lack of standards; lack of access to credit, machinery, among others, due to their smallholder nature.
However, to enable farmers overcome these challenges and take advantage of the AfCFTA arrangement, Prof. Asante is calling for efforts to promote aggregators – agricultural businesses or cooperatives of growers who consolidate and distribute agricultural products.
Egypt, Cameroon Discuss Economic Relations (See)
Egypt’s Minister of International Cooperation Rania Al-Mashat met Cameroon’s Minister of Economy to discuss economic relations and ways to enhance cooperation between the two countries. Al-Mashat said: “We are working to enhance joint cooperation and development between Egypt and the African Continent, by pushing for regional integration and stimulating the knowledge and expertise exchange.”
The meeting comes as part of Mey’s visit to Egypt to participate in the “The 3rd Meeting of Governance Council of Arab Africa Trade Bridges Program”. It also comes within the framework of strengthening economic relations with African countries, in light of the country’s 2030 development vision, where both ministers addressed ways to enhance bilateral cooperation across different sectors.
During the meeting, Al-Mashat explained that the Ministry of International Cooperation is working to promote joint development between Egypt and the African continent by pushing for regional integration, and by enhancing expertise and knowledge-sharing while spotlighting Egypt’s own development experiences with other African countries.
Opening of Opportunities for Tamil Nadu Businessmen in Ethiopia (Devdiscourse)
Ambassador of Ethiopia in India Dr.TizitaMulugeta presents trade in Ethiopia The India Africa Trade Council-COMESA organized the India Ethiopia Trade Conference which was attended by the Business community in South India especially Tamil Nadu. The President of Indian Economic Trade Organization Dr. Asif Iqbal welcomed the Ambassador of Ethiopia in India HE Dr.TizitaMulugeta and pledged the commitment of support between the two nations for a robust partnership.
There is a huge interest in India for Ethiopia, a country with great scope for bilateral trading opportunities in Pharma, Medicines, IT development, Textiles, Garments and Industrial development by Indian companies.
India Africa Trade Council (IATC) is working on building bilateral trade relations by assisting Indian companies that are looking at various projects coming up in African region for promoting growth in commerce and trade, especially in Indian Pharma which likely to increase as the Ethiopia market
African trade
Milestones achieved in the continental integration agenda; latest African Integration Report shows (African Union)
The integration of the African continent is well above average with five Regional Economic Communities (RECs) demonstrating progressive efforts towards integration. The East African Community (EAC); Economic Community of West African States (ECOWAS); Common Market for Eastern and Southern Africa (COMESA); Economic Community of Central African States (ECCAS); and the Southern African Development Community (SADC) integration scores exceed 0.6 in a rating range between 0 and 1. The other RECs, the Intergovernmental Authority on Development (IGAD); Community of Sahel-Saharan States (CEN-SAD); and the Arab Maghreb Union (AMU) are just above the average of 0.5. The lack of defined plans or programmes in certain dimensions of integration such as free movement, financial and monetary integration are the causes for the poor overall performance of the three RECs. The latest pdf African Integration Report 2021 (3.71 MB) shows that ECOWAS, COMESA and EAC performed best in trade integration, with scores above 75%. The three have been able to implement essential steps for achieving trade integration such as the free trade zones and a common external tariff, among others. At the infrastructural level, the RECs have almost similar developments. This corroborates the general problem of infrastructure in Africa, which cannot effectively support the integration process. With an average progression of 63%, no REC stands out significantly in terms of the achievements and progress made.
The 2021 African Integration Report whose primary theme looks at the “Putting Free Movement of Persons at the centre of Continental Integration”, shows that the average progress of the RECs in the implementation of free movement of persons is moderate at 0.68 on a rating scale between 0 and 1. ECOWAS and EAC stand out from other RECs in the evaluations with respective ratings of ECOWAS (100%) and EAC (96%); all the other RECs score below 65%. This can be explained by the difficulties experienced in either implementing the regional free movement protocols or the abolition of visas in their Member States.
The African Union Commission Chairperson, H.E. Moussa Faki Mahamat commends the progress made in moving forward the continental integration highlighting the possibilities to foster regional integration for the continent’s socio-economic transformation. Some RECs have provided practical success stories based on strategies and initiatives that can easily be adopted by others. He stated “one of the important messages emerging from the 2021 African Integration Report is that while the pace of regional integration has been generally slow in some RECs, significant progress has been made in various thematic areas; such as the free movement of persons, customs unions, tariff and nontariff barriers, transport corridors and regional infrastructure.”
Africa: Trade finance and the efforts to boost intra-African trade (Baker McKenzie)
As stated by the President of the African Development Bank (AfDB), Akinwumi A. Adesina, “trade finance is an important instrument for influencing Africa’s long-term economic development and structural transformation”. According to a report by the AfDB and the African Export-Import Bank (Afrexim), Trade Finance in Africa: Trends Over the Past Decade and Opportunities Ahead, the region was one of the most integrated with the rest of the world in 2011. However, in the last decade, Africa’s trade growth has been one of the worst among the major regions of the world. This is as a result of a number of factors including falling commodity prices, competition, inadequate foreign exchange liquidity, regulatory challenges and access to trade finance, as banks have gradually been scaling back activities from riskier markets. The study showed that although trade finance remains a popular activity among banks in Africa, the participation rates continue to decrease, falling by 16% between 2013 and 2019. As a result, the trade finance gap in Africa averaged USD 91 billion for the period between 2011 to 2019. Furthermore, the trade uncertainty in Africa was exacerbated by the impact of the COVID-19 pandemic, which resulted in a twin supply-demand shock across the continent. Supply was affected by mass production shutdowns and supply chain blockages and demand for products from Africa decreased globally.
AfDB Mobilizes Funds for Projects Via Integrated Platforms (Business Post Nigeria)
The African Development Bank (AfDB), which sets its primary tasks of contributing to the continent’s economic and social development by providing the necessary concessional funding for projects and programmes, as well as offering and coordinating assistance in capacity-building activities, has now embarked on various post-COVID-19 initiatives throughout the continent, especially in the least developed African countries. In the latest was the mid-March event where potential investors have examined more than $50 billion of curated bankable projects in key priority sectors identified in the Africa Investment Forum’s 2020 Unified Response to COVID-19 initiative. The sectors include agriculture and agro-processing; education; energy and climate; healthcare; minerals and mining; information and communications technology and telecommunication; and industrialization and trade. Nine of these projects are women-led, with a potential value of $5 billion. The AfDB has secured $32.8 billion in investment commitments for projects in Africa. The largest deal secured at the three-day Africa Investment Forum was $15.6 billion for the Lagos-Abidjan mega highway of about 1,200 km (745 miles) will have four to six lanes, connecting West Africa’s two major cities in Nigeria and Ivory Coast, said AfDB President, Mr Akinwumi Adesina.
“Africa is a very bankable continent. We’ve gone through hard times because of the Covid-19 situation but here we are on a rebound,” said Adesina. “Africa is back for investments.” The projects, part of the bank’s Covid-19 response, touch on sectors including agriculture and agro-processing, education, energy and climate, healthcare, minerals and mining, and information and communications technology.
Africa Investment Forum Virtual boardrooms attract $32.8 billion in investment interest (AfDB)
The Africa Investment Forum boardrooms have drawn $32.8 billion in investment interest in bankable projects. Unveiling the results of the Forum’s virtual boardroom sessions on Thursday, African Development Bank Group President Dr. Akinwumi A. Adesina told the 500 project sponsors, investors, deal brokers and government representatives from around the world who took part in them: “In 72 hours, you all connected, you struck deals and you created success.”
Describing the mood in the boardroom sessions, Alain Ebobissé, CEO of Africa50, said: “There were real and exciting deals that were transacted during this forum. We’re seeing a lot of interest from the private sector in various sectors, including power – particularly renewables, the ICT and telecom sector, and healthcare. We need to make sure we speed up the implementation of that so that success will generate more success.”
The largest investment opportunity in the boardroom sessions was the Lagos Abidjan highway corridor project valued at $15.6 billion and led by the Economic Community of West African States (ECOWAS) Commission. Once completed, this public private partnership project will link Abidjan to Lagos via Accra, Lomé and Cotonou along the West African coast.
The highway will reduce travel times by 50%. It will give landlocked countries access to ports and “make a meaningful impact on the lives of over 500 million people in West Africa,” Adesina said. “The African Development Bank Group has provided more than $40 million for feasibility studies to prepare the project for investment.”
Sadc council deliberates on regional integration cooperation and economic development 2 (sardc.net)
The Southern African Development Community (SADC) Council of Ministers met in Lilongwe, Republic of Malawi on 18-19 March, 2022 to review the implementation of programmes aimed at promoting and deepening regional integration, cooperation and economic development. The meeting was preceded by the meeting of the SADC Standing Committee of Senior Officials which deliberated and cleared issues for consideration by the Council of Ministers from the 13th to 17th March 2022.
In her address, Honourable Nancy Gladys Tembo, Minister of Foreign Affairs of the Republic of Malawi and Chairperson of the SADC Council of Ministers highlighted the need for SADC Member States to sign and ratify key trade and industry legal and policy instruments to facilitate advancing of the regional integration and industrialisation agenda.
The SADC Executive Secretary, His Excellency Mr. Elias M Magosi expressed his gratitude to SADC Member States for the support and commitment to the SADC regional programmes and continued collaboration with the Secretariat in the implementation of priority areas outlined in the Regional Indicative Strategic Development Plan (RISDP) 2020-2030 and Vision 2050. The following are some of the key issues Council deliberated on during the two-day meeting.
EAC reviews Common Market Protocol ahead of DRC entry (The East African)
The East African Community is reviewing the Common Market Protocol to allow a smooth entry of the Democratic Republic of Congo (DRC) and spur intra-regional trade, which has stagnated at around 15 percent. The bloc’s highest decision-making organ, the Heads of State Summit, will review the protocol at the High-Level Summit Retreat on the Common Market before this year’s summit in April. EAC Secretary-General Dr Peter Mathuki confirmed the plan. The Common Market was adopted in 2009 and entered into force on July 1, 2010, with the aim of boosting the growth of the EAC through free movement of goods, services, labour and capital. Its introduction five years after the first pillar, the Customs Union (2005), required that it combine the region’s economies, create opportunities for the private sector and increase competitiveness. But, 11 years on, its requirements have been hampered by tariff and non-tariff barriers, red tape and noncompliance by the partner states. The other pillars, the Monetary Union and the Political Federation, are at various stages of implementation.
Now, with the expected entry of mineral and natural resource-rich DR Congo, which comes with a population of over 90 million people, Kinshasa offers a fertile consumer market and an important investment destination. Its EAC entry is expected to strengthen trade ties and expand the market for goods and services.
Bring down East African borders for trade to flourish (EABC)
The East African Business Council (EABC) Chairman Mr. Nicholas Nesbitt, EBS, OGW has called upon the EAC Partner States to bring down East African borders for trade to flourish. Speaking at the EABC Private Sector Pre- Heads of State Summit Engagement organized with support from GIZ, Mr. Nesbitt said, “EAC Partner States should fully operationalize the EAC Single Customs Territory and adopt technology to transform our EAC region to be borderless for goods and services!” The Chief Guest, Dr. Kevit Desai called for public-private dialogue and collective responsibility. He further said, “the expanding market, diversity of our people and the richness of our resources are key prospects for the economic growth and prosperity of our region.” Dr. Kevit Desai urged the business leaders to analyze EAC protocols and intra-EAC trade hurdles that need Presidential intervention to be resolved in a bid to reduce the cost of doing business in the region.
East African countries in $8b investment plan (The East African)
East African states will jointly benefit from at least $8.77 billion worth of investments in transport, healthcare, energy, and agriculture among other sectors, from deals made at the 2021 African Investment Forum concluded on Thursday. The three-day event was organised by the African Development Bank (AfDB) in partnership with other finance organisations including Africa Export-Import (Afrexim) Bank and African Finance Corporation among others, yielded a total of $36.2 billion from 43 investment deals for the entire continent, 37.5 percent short of the expected $58 billion. For East Africa, the largest deal inked during the forum is the $3.3 billion railway corridor that will run from Dar es Salaam through Bujumbura to Kinshasa in DR Congo, with an extension to Kigali, which will be done as a public-private partnership project. “There is a lot of political support and goodwill for this, I can’t wait to see this railway,” said Dr Akinwumi Adesina, AfDB president and chair of the forum that was attended by 11 heads of states, including Tanzania’s Samia Suluhu, Rwanda’s Paul Kagame, and DRC’s Felix Tshisekedi.
“This is all part of improving the regional integration, and also accelerating the Africa Free Trade Area. It is going to drive down the cost of moving things,” Dr Adesina added.
EA economies bank on digital tax to shore up budget funding (The East African)
East African countries are racing towards taxing digital services revenues in a desperate move to boost revenue collections, narrow fiscal deficits and tame excessive borrowing. Rwanda has announced plans to start taxing digital services such as Netflix and Amazon as the country looks to expand its tax base, but there are fears the decision could scare off investors from the budding digital services market. Details about which platforms will be taxed, the modes of taxing and projected amount that Rwanda looks to gain are still unclear since the proposal is still being reviewed by the Ministry of Finance and Economic Planning. Rwanda Revenue Authority (RRA) is expected to conduct an impact assessment before implementation of the policy. The taxman has been looking for ways to expand its tax base even as its collection exceeded targets by over $60.1 million in 2020/2021 despite disruptions.
Jean-Louis Kaliningondo, RRA’s deputy commissioner general said as the market for digital services in Rwanda grows, it is only fair that the country gains from it. “We have not laid out all the details yet but Rwandans who consume these services are using the money generated here. It is also unfair when we tax local digital companies that might not even have as many clients as these companies,” said Mr Kaliningondo
Rwanda follows other African countries including Nigeria, Zimbabwe and Kenya that have started taxing such services as companies like Netflix look to expand their footprint on the continent. But analysts say an increase in prices from the levy could interrupt uptake of digital services in Rwanda.
Uganda bids to host Africa drugs agency (The East African)
Uganda has the required capacity to host the African Medicine Agency (AMA) following its investments in developing and manufacturing drugs over the years, President Yoweri Museveni has said. According to the President, the country already has experience in making HIV/Aids drugs for the last 10 years under Cipla Quality Chemical Industries Limited. “For us, we are moving on with what we call the pathogenic economy. The issue is whether Africa will move with us. We started long time ago with Aids drugs. Why should foreigners make money out of our sicknesses and not us?” he posed.
Uganda is among the eight countries seeking to host the continental regulatory agency. They are Rwanda, Tanzania, Zimbabwe, Algeria, Egypt, Tunisia and Morocco. AMA will provide a streamlined regulatory authority to improve quality medicines access and combat substandard imports in the continent.
COMESA and Partners in Quest for Sustainable Fish Trade (COMESA)
COMESA in collaboration with IGAD, EAC, SADC, IOC, Lake Tanganyika Authority (LTA) and the Lake Victoria Fisheries Organisation (LVFO) have renewed their partnership of working together in implementing a programme on sustainable development of Fisheries commonly known as ECOFISH in the Eastern Africa, Southern Africa and the Indian Ocean Region. The partnership, started three years ago after a 28 million Euros finance agreement was signed by the Indian Ocean Commission (IOC), on behalf of COMESA, EAC, IGAD and SADC, with the European Union (EU). Over the years, the implementing partners have been steadily implementing the agreed programs amid the challenges brought about by COVID-19. In view of this, COMESA Secretariat hosted the 3rd Steering Committee Meeting on 17 and 18 March 2022 in Lusaka during which the teams could track the progress and performance of the program and make recommendations for implementation. Apart from COMESA Secretariat, fish experts from IGAD, EAC, SADC, IOC, LTA and LVFO participated in the meeting which was held both physically and virtually.
Assistant Secretary General for Programs Dr Kipyego Cheluget officially opened the meeting and urged the team to make recommendations that will help the fish and fish industry sector to grow and be sustainable. He pointed out that majority of fisheries value chain actors are small-scale and live primarily in coastal and inland lake areas in the region.
The meeting commended the development of the blue economy satellite account which was recently validated that it would play major role in complementing efforts in capturing the required data. Capturing of the data on ecosystem and fisheries habitat is expected to support evidence-based policymaking and monitoring of the marine as well as inland fisheries of the EA-SA-IO region.
Nigerian to Head Regional Maritime Development Bank | Business Post (Business Post Nigeria)
The headquarters of the proposed Regional Maritime Development Bank (RMDB) will be in Nigeria following the 12 per stake in the financial institution. RMDB is being proposed to replace the Maritime Development Bank of Nigeria (MDBN) and Nigeria is playing big in the process, with the presidency ceded to the self-acclaimed giant of Africa, supported by the 25 countries that make up the Maritime Organization for West and Central Africa (MOWCA). At the just-concluded public hearing on some maritime bills organised by the House of Representatives Committee on Maritime Safety, Education and Administration, the Director of Legal Services at the Federal Ministry of Transport, Mr Pius Oteh, said that the entire members of MOWCA in 2011 agreed to have a $1 billion as the capital base of the bank. Mr Oteh said that the establishment of a maritime bank in Nigeria would have sent a wrong signal to other countries that are already committed to the formation of the RMDB.
Recycling grows jobs, small businesses in Africa (Dailynews)
As the world commemorates Recycling Day, more and more plastic waste is being diverted from landfills and into a circular economy that grows employment and entrepreneurship in African countries. Coca-Cola Beverages Africa (CCBA) Group Head of Sustainability Diana Sibanda said the company was developing increasingly sustainable ways to manufacture, distribute and sell its products. “We use our industry leadership to be part of the solution to achieve positive change in the world and to build a more sustainable future for our planet,” she said in a statement yesterday. Locally, in Tanzania, CCBA in collaboration with its recycling partner Sunda Chemical Fiber has recycled more polyethylene terephthalate (PET) than it produced, achieving a recycling rate of 113 per cent over the past two years. Food and beverage packaging is an important part of modern life, helping to ensure food safety and reduce food waste, yet the world has a packaging problem that requires a comprehensive response.
Ukraine conflict: The Africa trade balance (TFXF)
The impact of conflict in Ukraine on the world economy is not difficult to summarise: bad. In the case of Africa, it is much more complicated because of the continent’s diversity: good and poor agriculture, energy wealth and energy poverty. The impact on trade is similar but hard to quantify accurately. Statistics are always out of date but COVID-19 has meant that long term trends have been obscured by recent and country specific changes. But some things can be asserted. This is a crisis of primary trade (agri, metals and hydrocarbons) and its ancillaries (feedstock to fertiliser) and not primarily of manufactured goods. Nor does it necessarily mean an additional shortage of (or an additional risk to the availability of) trade finance from the traders and bankers who facilitated this open market dollar-based commodity financing. The complexities for Africa are both in terms of a geopolitical challenge as African nations weigh their historic relationships with superpowers, and of risk, in particular for those countries dependent on imports of soft commodities. Meanwhile, there is a delicate balance to be struck of potential opportunity for energy producing countries of energy security and of sustainability. Some of the biggest immediate effect on Africa trade is on soft commodities. How will different African countries be affected by sanctions on fertiliser, wheat and other food crops – and the cessation of Ukrainian soft commodity exports? While parts of the world have relied on Russia’s oil and gas, the world also relies on its cereal exports.
But some lessons can be drawn.
African Union and European Union step up digital cooperation following EU-AU Summit (African Business)
Digital cooperation is a cornerstone of the Africa-EU strategic partnership. This was underlined by representatives from the European Union and the African Union on the 18th of March 2022 at the Africa-Europe Digital for Development (D4D) Hub Multi-Stakeholder Forum. The event, which took place virtually, was co-hosted by the African Union Commission and the European Commission with the aim of promoting exchanges and collaboration with enterprises, civil society organisations, and experts in the digital field.
Ms Jutta Urpilainen, EU Commissioner for International Partnerships said: “today we kicked off a much-needed dialogue with our private sector and civil society partners in Africa and Europe to build a shared digital future that leaves no one behind. This is the first step in implementing concretely the deliverables of the recent EU-AU Summit. In line with the Global Gateway Strategy, the EU will scale up investments, support innovation, and promote digital rights. Bridging the digital divide is key in fighting inequalities. To achieve this, we must work together with all our partners in the digital ecosystem.”
Dr Amani Abou-Zeid, AU Commissioner for Infrastructure and Energy, commented: “The COVID-19 pandemic highlighted the importance of digital technologies to keep our businesses, healthcare, education and public services running. These exceptional times have also shown the urgency to invest in Africa’s digital infrastructure and build on Africa’s innovation potential. The African Union welcomes the partnership with the European Union and further engagement with African and European stakeholders to accelerate the digital transformation of our continent.”
Global economy news
UN prioritizing least developed countries in plans, investments and actions (UN News)
Developing countries need to invest in sectors that reduce poverty and increase resilience, such as job-creation, social protection, food security, universal healthcare, quality education and digital connectivity, said the top UN official. However, he added that LDCs are up against a “morally bankrupt global financial system,” designed by the rich and powerful to benefit themselves that sustains inequalities, rather than fostering development. “This must change,” upheld the UN chief, flagging that LDCs require “urgent debt relief, restructuring and cancellation, in some cases”. He said that they should be able to borrow at a low cost, be protected in times of crisis and receive more liquidity. “And we need to create a fair tax system and combat illicit financial flows to re-invest some of the massive pockets of global wealth into people and countries who need it most,” underscored Mr. Guterres.
OECD calls for well-targeted support to the vulnerable as war undermines global recovery (OECD)
Russia’s war against the people of Ukraine is a deeply distressing moment for the world. Thousands of people have been killed with millions fleeing from the war. Beyond the ongoing humanitarian disaster, the economic damage is already being felt worldwide and risks becoming increasingly severe. In its first assessment of the Economic and social impacts and policy implications of the war in Ukraine, the OECD says Russia’s invasion on 24 February 2022 has caused a humanitarian crisis in Ukraine, destroying lives, homes and infrastructure, while throwing the strong global economic recovery from the COVID 19 pandemic into doubt. Amid the uncertainty, the OECD estimates global economic growth will be more than 1 percentage point lower this year as a result of this conflict, while inflation, already high at the start of the year, could rise by about a further 2.5 percentage points on aggregate across the world.
DDG González: the trading system, a crucial ally in the fight against the pandemic (WTO)
Trade policy is health policy, and WTO members have a unique responsibility to leverage the full force of trade to achieve better health outcomes around the world, according to Deputy Director-General Anabel González. In an article published on 17 March in Think Global Health Trade, a multi-contributor website by the Council on Foreign Relations, DDG González points at the three main lessons which have emerged from the pandemic: global trade equals strength, a rules-based trading system matters in times of crisis, and better trade collaboration will improve health outcomes around the world.
COVID-19 and the Sustainable Development Goals: Reversing progress towards decent work for all (ILOSTAT)
In 2019, 2 billion people worldwide worked in the informal economy, performing jobs that are characterized by low job quality and lack of social protection. In the early stages of the pandemic, informal employment (in countries with dual labour markets) often did not play its traditional countercyclical role of absorbing workers displaced from the formal sector. New evidence from 29 countries with available data indicates that informal employment was disproportionately affected by job losses in 2020 in some regions. In the Americas, which experienced the largest employment decline of all regions, informally employed workers were almost twice as likely to lose their jobs as their formal counterparts. This may be ascribed to several factors. First, there is widespread informality in the hardest-hit sectors, where lockdowns and containment measures prevented informal workers from going about their work, and where the scope for telework was limited. Second, it is relatively easy to terminate informal employment relationships. Third, informal workers are often employed in smaller enterprises, which have struggled to survive after long periods of inactivity and have had more limited access to support measures, including worker retention schemes.
As economic activity gradually picked up again, informal employment, especially self-employment, experienced a strong rebound in some regions, and many informal workers have returned from inactivity.
Trips waiver compromise draws mixed response (Devex)
A potential waiver of some intellectual property restrictions on COVID-19 vaccines negotiated by South Africa, India, the United States, and the European Union leaked last week to mixed reactions. The potential deal has been celebrated in some corners for finally breaking through negotiations that have been gridlocked for months and delivering a Trade-Related Aspects of Intellectual Property Rights, or TRIPS, agreement that has the potential to at least ease access to vaccines for the global south. But critics said what has emerged bears little resemblance to the proposal South Africa and India tabled in front of the World Trade Organization in October 2020, which also called for IP waivers on COVID-19 therapeutics and diagnostics.
Pandemic’s E-commerce Surge Proves Less Persistent, More Varied (IMF Blog)
There’s no doubt that e-commerce helped many navigate the pandemic, from online shopping to curbside pickup to food delivery. But as we slowly emerge from lockdowns and other restrictions, it’s less clear how this shift to digital commerce may evolve across economies and industries.
This raises questions about how much digital consumption increased, whether the crisis widened the digital divide or spurred economies with little e-commerce to catch up, how permanent the shift to online sales will be, and what factors explain deviations between economies and sectors.
We investigated these questions in new research that uses a unique database of aggregated and anonymized transactions through the Mastercard network from across 47 countries from January 2018 to September 2021. We found that the share of online spending rose more in economies where e-commerce already played a large role—and that the increase is reversing as the pandemic recedes.
This research, a new partnership between Mastercard, the International Monetary Fund and Harvard Business School, shows how private-sector data can help advance empirical economics and will be the first in a series of such studies.
DG Okonjo-Iweala hails achievements of Agriculture Committee following its 100th session (WTO)
At a special event on 17 March to mark the 100th session of the Committee on Agriculture, Director-General Ngozi Okonjo-Iweala praised the achievements of the Committee over the past 27 years and highlighted its important role in overseeing implementation of the WTO Agreement on Agriculture. “The Committee has played a crucial role in improving how markets function, strengthening transparency, and enhancing the predictability and stability of global trade in food and farm goods,” she noted.
“Today’s event marks an important milestone. It’s an opportunity to take stock of our achievements, and also to look ahead at the next quarter-century of work,” said DG Okonjo-Iweala in her opening remarks. The DG stressed that the Committee on Agriculture was set up to allow WTO members to exchange views about compliance with rules in the Agreement on Agriculture. It also provides a forum to address disagreements about members’ agri-food trade measures and to help “nip trade irritants in the bud”, she added. The Committee has also proved it can adapt to changing times, the DG said, pointing to its active role in implementing the Nairobi Ministerial Decision on eliminating agricultural export subsidies and in addressing export restrictions during the COVID-19 pandemic. DG Okonjo-Iweala said she is confident that the Committee will help members address new challenges in the future and work towards achieving the UN Sustainable Development Goals. She encouraged members to build on past experience and continue strengthening the Committee’s work through active participation and enhanced transparency regarding their trade measures.
Agriculture Committee’s 100th session discusses food security, farm policies, Nairobi Decision (WTO)
Improving timber supply chains will help unlock sustainable production and consumption this International Day of Forests (Wildlife Trade News)
It is critical for climate change mitigation and a vital habitat breaming with biodiversity, of approximately 10,000 species of tropical plants, of which 30 percent are unique to the region. Timber trade in the Congo Basin is an essential source of income, integral to national economies, and provides a livelihood to local communities. Ensuring the sustainable production and consumption of timber in the Congo Basin, therefore, is paramount. Yet a surging demand for tropical wood, primarily from Asia but also from Europe and America, exacerbated by corruption, resource mismanagement, and ineffective regulation, is making it all too easy for criminals to harvest and trade in threatened timber illegally.
Since 2009, the volumes of Central African timber exports to China have increased by 60%. The country is now the top export destination for the Congo Basin timber. Beyond the international demand for tropical timber, there are additional challenges of domestic markets within the countries in the Congo Basin. For example, artisanal logging to support the local demand for house construction and furniture is not regulated and this use of timber contributes to the pressures of international trade.
This ever-increasing demand has put the Congo Basin rainforest and its vibrant species under threat from unsustainable and illegal logging. It is possible that without tackling the already prevailing unsustainable harvest and trade, the increasing demand for tropical timber could eventually lead to the disappearance of species. To stand a chance in countering this threat, first, we need to better understand the three pillars of the timber supply chain: the source countries, the transit of timber and who is buying it.
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4th SA Investment Conference 2022 (Mail & Guardian)
In an effort to boost economic growth and facilitate the creation of more employment opportunities, President Cyril Ramaphosa committed to raising more than R1.2 trillion in investments for South Africa over five years. This initiative culminated in the launch of the South African Investment Conference (SAIC), which now spearheads the government’s investment drive. Since its launch in 2018, SAIC has hosted three consecutive annual investment conferences, but the Covid-19 pandemic caused a postponement in 2021. To date SAIC has gathered a combined R774 billion worth of investment pledges — 64% of the President’s target — spread across a range of economic sectors including, mining, manufacturing, agriculture and the digital economy.
It’s a considerable achievement, considering the several challenges facing the local and global economy. To this end, the fourth investment conference scheduled in Sandton, Johannesburg on 24 March 2022 will mark the President’s next leg of his ambitious programme to raise R426 billion over the next two years — the remaining 36% of his R1.2 trillion target. In the challenging economic environment, it is encouraging that green shoots are slowly emerging in the local economy. The gradual but steady realignment of supply chains across the globe that were disrupted at the height of the pandemic is certain to add momentum to its recovery. The evidence suggests that South Africa is creating an attractive platform on which to do business by focusing on economic growth and the rapid introduction of economic reforms, including the improving regulatory environment.
The Economic Reconstruction and Recovery Plan provides a great opportunity for South Africa to train a new crop of black industrialists, including women and youth entrepreneurs, who have long been consigned to the periphery of productive sectors of the economy.
IEA releases 10-point plan for reducing oil use as South Africa mulls mitigation options (Engineering News)
The International Energy Agency (IEA) has released a 10-point plan for speedily cutting oil demand in response to the emerging global energy crisis triggered by Russia’s invasion of Ukraine. The agency calculates that, if implemented by all advanced economies, the plan will reduce demand by 2.7-million barrels a day within four months, equivalent to the oil demand of all the cars in China.
Delivery costs major hindrance in switch to online shopping (Business Daily)
Kenyans who prefer to order goods online are grappling with elevated logistical costs which are slowing down the growth of e-commerce in retail space in an economy where homes are struggling with reducing disposable income. Players in e-commerce say expenses involved in transporting goods from a store to a buyer are a major damper to the growth of the sector. “The biggest barrier to growth in e-commerce is logistical cost. The cost is still very high and we have a population that doesn’t have enough disposable income,” Sendy co-founder and chief executive Mesh Alloys says. The rising fuel costs in Nairobi with a poorly planned transport infrastructure — characterised with traffic snarl-ups on key roads with no separate lanes for cycling — has not helped matters.
The latest review is on the back of economic sanctions on Russia for its brutal war in Ukraine which has created demand-supply mismatches, pushing up global crude prices to levels that state-run fuel subsidy cannot fully absorb.
Ease of Movement, as Kenya Lifts Major COVID-19 Restrictions (COMESA)
Kenya has taken the first major step towards easing restrictions imposed two years ago with the onset of the COVID-19 pandemic. Notably, it has waived the requirement for PCR test for travellers to Kenya, for those that are fully vaccinated. This includes truck drivers who will also be exempted from the PCR test if fully vaccinated, a move that will facilitate movement of goods across the borders. All eligible unvaccinated travellers arriving at any port of entry to Kenya must however have a negative PCR test result conducted not more than 72 hours before departure. Unvaccinated travellers arriving in Kenya will be subjected to a rapid antigen test at their cost of $30.
Besides easing travel to Kenya, the new measures are also expected to scale- up vaccinations in the country and thereby help the economy to return to the pre-COVID-19 normalcy. Kenya is a leader in intra-COMESA trade and the new measures are expected to have a positive impact across the region.
Maize flour prices to rise on tax, shortages (Business Daily)
The price of maize flour could go up by Sh2 for a two kilogramme packet in the coming days on the back of a shortage and costly maize in the market, coupled with a recently introduced cess on grains delivered to Nairobi. Unga Limited chief executive officer Joseph Choge said cess alone could see the cost of flour go up by Sh2 once the cost is factored in the pricing. Kenya Revenue Authority (KRA) announced last week that it had started charging the levy effective March 11 on deliveries made in Nairobi where all the large-scale millers are based with a few branches in other cities. “Cess will definitely affect new stocks that we are buying and prices will increase,” Mr Choge said. He added that the company had not yet increased prices, noting that this will be done for new supplies coming to Nairobi. Speaking on Wednesday during the millers annual conference in Nairobi, chairman of the United Grain Millers Association Ken Nyagah said they were hardly getting grain from farmers as supply of the grain tightens in the market.
Nigeria’s fuel import rise to N4.5 trillion in 2021 (Nairametrics)
Nigeria spent a total of N4.56 trillion on the importation of moto spirit (fuel) in 2021 about 128% higher than the N2 trillion spent on fuel importation in 2020. This is according to foreign trade data recently published by the National Bureau of Statistics. This is the highest amount spent on the importation of motor spirit since Nairametrics started tracking the data. Nigeria spent a whopping N6.3 trillion on Fuels and Lubricants imports in 2021 dwarfing the N2.83 trillion, N2.5 trillion, and N3.8 trillion incurred in 2020, 2019, and 2018 respectively. The country is currently experiencing one of the worst fuel crises in recent years and fuel queues remain sticky due to protracted clear out of adulterated fuel and the challenges with the importation of fuel. Diesel prices have also recently shot up to over N700 per litre.
Nigeria’s total public debt rises to N39.55 trillion as at December 2021 (Nairametrics)
The Debt Management Office (DMO) has revealed that Nigeria’s total public debt has risen to N39.55 trillion as at December 2021. This represents a N1.55 trillion or 4.1% increase in 3 months when compared to the N38 trillion total public debt that was recorded as at September 2021. This was made known on Thursday by the Director-General of DMO, Patience Oniha while addressing journalists on the country’s current debt situation. According to NAN, Oniha said that the amount represented the total external and domestic debts of the Federal Government, 36 state governments as well as the Federal Capital Territory (FCT).
She said, “For the Federal Government, it would be recalled that the 2021 Appropriation and Supplementary Acts included total new borrowings of N5.48 trillion to part-finance the deficits. “Borrowing for this purpose, and disbursements by multilateral and bilateral creditors account for a significant portion of the increase in the debt stock.’’
Food prices surge in Kano, Abuja as traders blame fuel scarcity, transport cost (Nairametrics)
Traders and consumers alike have reacted to the significant surge in the prices of food items in Kano State and the Federal Capital Territory (Abuja). The price of yam, beans, groundnut oil and other staple food items skyrocketed in March, following the scarcity of fuel across the country.
A trader identified as Tochukwu attributed the rise in food price to the hike in the cost of transportation. “Since fuel became scarce, vehicle owners now charge higher for transportation. I use to come to this market from Galadima for N200. Now I pay N300, If it’s you won’t you increase the price?” he asked. Another trader named Chioma who sells groceries lamented the cost of waybill.
Similarly, Mahmoud, a trader who sells yam and plantain at Wuse Market decried the recent hike of transporting goods.
Naco engages exporters on trade info repository under afcfta (The Business & Financial Times)
The Ghana National Coordinating Office (NACO) of the African Continental Free Trade Area has engaged stakeholders in the business community to develop an electronic Trade Information Repository interfaced with the African Trade Observatory (ATO) to increase trade prospects of Ghanaian businesses in the AfCFTA market.
The platform, known as the Ghana Trade Information Repository (GTIR), will provide a real-time information on product-market opportunities across Africa so Ghanaian exporters are enabled to increase trade with the sub-region.
Trade Ministry advocates collaboration among stakeholders to boost economy (Ghanaian Times)
The Deputy Minister of Trade and Industry, Herbert Krapa, has called for a strong collaboration between the ministry and other stakeholders in the export industry to promote and boost the economy. According to him, this would strengthen government’s agenda on One District, One Factory and promote agribusiness in the country. He urged the stakeholders; namely the Ghana Export Promotion Authority, Ghana Exim Bank, Ghana Free Zones Authority, Ghana Standards Authority, Food and Drugs Authority and the private sector to work hand in hand to promote the sector. Mr Krapa made the call at the Ghana Exim Bank’s stakeholders forum which had the theme, “Facilitating International Trade: the role of GEXIM” in Accra yesterday. The Deputy Minister said government had developed a blueprint for a sustained increase in non-traditional exports, hence it needed all hands on deck to sustain the gains. He said the National Export Development Strategy when fully implemented, would facilitate a significant increase in exports to other continent adding that, “it will increase non-traditional export revenue from the current 2.9 billion United States dollars to 25 billion United States dollars by 2029.”
MITC changes approach from trade forum to B2B meetings (Malawi Nyasa Times)
Malawi Investment and Trade Centre (MITC) has announced the change of its trade forum to Business to Business (B2B) meetings, which will take place in Dubai from 29th to 30th March. The trade forum was scheduled to take place on 10th March, 2022. B2B sessions are geared towards promoting Malawi as an ideal trade and investment destination in Africa.
The sessions also provide a platform for Malawian project promoters and exporters to market their projects and products to potential investors and buyers in Dubai. MITC Chief Executive Officer, Paul Kwengwere, said they have changed their approach from a forum to a B2B event where Malawi businesses will have a chance to meet international businesses one on one. “We believe B2B is ideal, especially linking our private sector players with key business decision makers we have identified in Dubai,” he said.
To ensure that our private sector is prepared for the meetings, he said, the MITC has organised a coaching session for those who have shown interest to participate so that they make the most of their time in Dubai in terms of marketing their projects to potential investors.
African trade news
SADC Council to strategize on regional integration (Namibia Economist)
The SADC Council of Ministers meets this week in Lilongwe, Malawi to discuss progress towards regional integration and sustainable development. The Council meeting on 18-19 March will consider the status of implementation of key decisions made by the 41st SADC Summit held in August 2021, as well as the previous SADC Council meeting. The 41st Summit of SADC Heads of State and Government approved a number of initiatives aimed at driving socio-economic development by deepening integration through industrialisation and ensuring the maintenance of peace and security in the region. One such decision was the transformation of the SADC Parliamentary Forum into a SADC Parliament which will be a consultative and deliberative body.
at the top of the agenda for the SADC Council will be how the region can intensify its response to the COVID-19 pandemic, including strengthening national campaigns by the Member States to mobilize citizens to get vaccinated against the virus.
Another priority issue is the status of implementation of the SADC Industrialisation Strategy and Roadmap (2015-2063), and Council will review progress. The region has pursued activities in recent years to roll out the SADC Industrialisation Strategy and Roadmap, which provides a framework for major economic and technological transformation at national and regional levels, within the context of deepening integration. The activities include the development of value chains linked to the three priority sectors of agro-processing, mineral beneficiation and pharmaceuticals. The theme of the 41st SADC Summit held in Malawi last year continues with the industrialization trajectory of the region — “Bolstering Productive Capacities in the Face of the COVID-19 Pandemic, for Inclusive, Sustainable Economic and Industrial Transformation”.
Business Model to Promote Digital Financial Inclusion Plan Developed (COMESA)
A business model on operation and implementation of a regional online payment platform for Micro and Small Medium Enterprises (MSMEs) in the COMESA region has been developed. The model was created by the COMESA Business Council (CBC) as part of its digital financial inclusion plan for MSMEs. It is aimed at supporting the design, development and deployment of an integrated digital financial services infrastructure that is low-cost, interoperable, real time and fraud resistant. It is intended to serve (MSMEs) and the customers they transact with at the bottom of the financial pyramid. The model was validated during the 4th Digital Financial Inclusion Public-Private Dialogue conducted by the CBC on 10th March 2022. Close to 200 delegates attended the dialogue physically in Lusaka, Zambia and virtually.
According to the experts, MSMEs contribute an estimated 50% to 70% of the Gross Domestic Product (GDP) in COMESA and account for 50% to 60% of the employment opportunities in the region. The key drivers of financial inclusion in the region have been mobile money and agent banking, now reaching millions of previously unbanked individuals, households and SMEs offering affordable, instant, reliable services on payments, savings, credit and insurance services among others.
ECOWAS E-commerce Experts Meet To Consider The Findings Of The Regional ETrade Readiness Assessment (The New Dawn Liberia)
The ECOWAS Commission, in collaboration with United Nations Conference on Trade and Development (UNCTAD), organized the Second Regional Meeting on the development of the Regional Ecommerce Strategy on the 14th of March 2022, to present the findings of the ECOWAS E-Trade Readiness Assessment. Representing Mr. Tei Konzi, Commissioner for Trade, Customs and Free Movement, Mr. Kolawole Sofola, Ag. Director for Trade welcomed the results of the eTrade readiness Assessment. He noted that it confirmed the high development priority ECOWAS Member States have placed on digital transformation and e-commerce. He further added that “the Commission foresees an ECOWAS e-commerce strategy that addresses identified challenges and strengthens cross-border e-commerce development efforts, deepens integration, boosts intra-regional trade, and creates sustainable and decent jobs for women and youth in the community”.
Ms. Cécile Barayre-El Shami, Chief, Digital Economy Capacity-building section, Division on Technology and Logistics, UNCTAD, stated that the meeting marked “an important milestone in the journey towards the development of the ECOWAS regional e-commerce strategy; as the assessment of the readiness of the region sets the stage for the strategy formulation by providing a baseline analysis of the current e-commerce situation.” She noted that the excellent collaboration and trust the ECOWAS Commission and its Member States have placed in UNCTAD was the result of a past and ongoing collaboration to support the region’s efforts to strengthen the e-commerce ecosystem through the review of e-commerce legislation at the regional level, as well as individual country readiness assessments and support for the implementation of related policy recommendations.
The overall objective of the meeting was to present to Member States the findings of the E-Trade Readiness Assessment conducted by UNCTAD, which consist of assessing the state of e-commerce preparedness in countries or regions based on seven (7) policy areas namely: i) e-commerce readiness and strategy formulation ii) ICT infrastructure and services iii) trade facilitation and logistics iv) legal and regulatory framework v) payment solutions vi) skills development and vii) access to finance.
‘Africa should seize fast-developing digital market space’ (BusinessGhana)
The AU Commission deputy chief made the remarks as the African continent joined the global community in commemorating the 39th World Consumer Rights Day, which is annually marked on March 15, under the theme; ‘Fair Digital Finance’. “Seizing the fast-developing digital market space is particularly important in our African context where access to countless goods and services remain restricted for the vast majority,” Nsanzabaganwa said in her statement concerning the World Consumer Rights Day. Noting that the African continent has an internet penetration rate of 43 percent, the deputy chief said innovation was transforming how people conduct financial transactions and live their lives throughout the continent, emphasising that digital finance and its implication on financial inclusion and financial stability was crucial for development in Africa.
AUC and Kingdom of Morocco sign the Revised Constitution of the AFCAC and the MoI of the SAATM (AU)
On the 9th March 2022, the Kingdom of Morocco signed the Revised Constitution of the African Civil Aviation Commission (AFCAC) and the Memorandum of Implementation (MoI) of the Single African Air Transport Market (SAATM).
Currently, 35 AU Member States with a total population of more than 800 million people, accounting for 61% of the population on the African continent and 89% of intra-African air transport market have joined SAATM and have opened up their markets to each other, removing restrictions in terms of frequency, capacity and granting to each other traffic rights and this will enable intra-African transport connectivity and support improvement of trade and tourism.
Global economy news
Landlocked developing countries (LLDCs) face many challenges due to their geographical remoteness from international markets. One of these challenges is high transportation costs due to their dependence on commodity exports. LLDCs also face constraints to improving the quality of their transport infrastructure to become more competitive in regional and international markets. UNCTAD developed its Productive Capacities Index (PCI) to support LLDCs and other developing economies to overcome structural challenges, including transport, connectivity and related hurdles. The PCI is an analytical tool designed to support developing countries in identifying their systemic vulnerabilities across different areas of productive capacity
According to studies conducted by UNCTAD and UN-OHRLLS, LLDCs’ relatively higher transport costs are mostly due to their geographical remoteness and high commodity dependence. LLDCs also grapple with infrastructure, connectivity and market access challenges due to their low levels of governance and productive capacities.
While Africa and Asia account for most of the LLDCs, comparing median PCI scores of the latter across regions enables us to define benchmarks for targeting productive capacity development efforts. Figure 4, for example, identifies the magnitude of connectivity gaps between LLDCs, which would enable policymakers to address the necessary reforms for bridging such gaps.
The challenges facing LLDCs are not limited to transport connectivity. They encompass a range of other issues, including logistics, physical infrastructure and trade facilitation, among others, reflected in gaps observed when analysing other PCI components.
Lose-Lose Trade Sanctions (Project Syndicate)
Ruthless trade and financial sanctions against Russia may be morally satisfying for Western politicians and their constituents, but that doesn’t mean they will be effective. In fact, the historical record suggests that such measures are often self-defeating and politically dangerous.
Recent research shows that the US-China trade war has had substantial economic costs. But the political costs may be even worse. International cooperation has broken down, multilateral institutions have been disempowered, and the world has entered an era of increasing polarization – both within and across countries. The best hopes for the future have seemed to lie in regional blocs and alliances, auguring a new, more fractured form of globalization.
New challenges ahead as provisional compromise on IP waivers is reached in WTO (EURACTIV)
News of a provisional compromise to waive intellectual property rights for COVID-19 vaccines between the EU, USA, India and South Africa in the World Trade Organisation (WTO) leaves out treatments for COVID-19. A provisional compromise between the EU, USA, India and South Africa, which still lacks formal approval, is a sign that parties could be moving towards an agreement to waive IP rights for COVID-19 vaccines. It is almost 18 months since India and South Africa asked the World Trade Organisation (WTO) to waive intellectual property (IP) rights for medicines aiding the “prevention, containment and treatment of COVID-19”. Today there is still no such thing and countries remain divided. “This is a major step forward and this compromise is the result of many long and difficult hours of negotiations. But we are not there yet. We have more work to do to ensure that we have the support of the entire WTO membership,” said the WTO Director-General Ngozi Okonjo-Iweala
When they agree to a final compromise, all 164 members of the WTO will be presented with the compromise and must reach a consensus before there can be a final agreement. Leaving out treatments against COVID-19 has left many wondering about the effectiveness of such an agreement.
DDG Zhang: trade for peace, one of the raisons d’être of the multilateral trading system (WTO)
For over seven decades, trade has helped promote and sustain peace in many parts of the world. Fuelled by trade growth, the global economy expanded at an unprecedented rate, lifting billions out of poverty. Trade has also been a key driver for integration projects in parts of the world which had suffered from conflict. According to the World Bank, the world extreme poverty ratio fell from 42.7% in 1981 to 9.1% in 2021
The trade for peace agenda had been taken for granted in the WTO and had not been explicitly pursued. It took a group of nine fragile and conflict affected Least-Developed Countries (LDCs) (3) to recall one of the raisons d’etre of the rules-based multilateral trading system: namely, that trade can and should play a role in promoting peace and stability. This group, called the g7+ WTO Accessions Group, was established in 2017 and has been the leading voice calling for the WTO to play a more active role in supporting the fragility agenda.
It was the vision of the fragile and conflict-affected countries which drove the establishment of the WTO’s Trade for Peace Programme. In collaboration with partners from the Trade for Peace Network, the WTO has implemented activities through the programme’s four pillars which include: (i) Political Engagement and Partnerships; (ii) Outreach and Dialogue; (iii) Research; and (iv) Training and Capacity Building. These activities are aimed at gaining a better understanding of the necessary and sufficient conditions to establish and maintain peace, and the role that trade and the multilateral trading system can play in this regard.
E-commerce and the digital economy in LDCs: At breaking point in COVID-19 times (UNCTAD)
Two years have passed since the beginning of the COVID-19 pandemic. As the economic fall-out is still being felt all around the globe, its impacts are not fully captured. In particular, the accelerated digital transformation, with digital solutions developed and used to facilitate economic and social activities from a distance, has been accompanied by a surge in e-commerce, with potentially long-lasting effects. It has also revealed wide gaps in digital readiness, especially in the most vulnerable economies. UNCTAD’s research has shown that the pandemic has further exposed gaps in policy areas central to improving digital readiness in least developed countries (LDCs). Many LDCs are being challenged by the fast transition needed but have realized the vital importance to develop digital infrastructures and policies to support e-commerce and the digital economy, as well as the education and health sectors. Both the public and private sectors have important roles to play in creating an enabling environment for the creation of jobs through ongoing digital innovation that is changing our economies - producing new products and services for national, regional and international markets. It is now more urgent than ever to ensure that those trailing in digital readiness can catch-up. The alternative is even greater inequalities.
International energy conference puts a spotlight on leveraging the energy mix and the future of Africa’s energy sector (Namibia Economist)
The 4th edition of Namibia’s International Energy Conference (NIEC), which has become the official meeting place for the energy industry, will be held from 20 to 21 April in Windhoek, under the theme ‘The energy mix: positioning for industrialisation, investment and growth.’ Organised by RichAfrica Consultancy with the support of the Africa Energy Chamber, the two-day energy sector event will be held under the patronage of the Ministry of Mines and Energy led by Honourable Minister Tom Alweendo. The NIEC thought leadership event will convene energy stakeholders with investors and international partners to drive industry growth and development, as well as promote Namibia and Africa as a destination for energy investments. Participating companies, international investors, service companies and various international delegations will share updates on exploration activities, renewable energy and regional gas and other ongoing projects and announce future projects while highlighting upcoming business and investment opportunities.
Aircraft operators stop pretending rules don’t apply in African skies (The East African)
For aircraft operators, the sky is a place without physical barriers, governed by common rules. But for some, this changes when they reach Africa. From the small and local through to intergovernmental organisations and global NGOs, a minority of aircraft operators still believe the rules don’t count when it comes to our continent. Much like we can pay tolls to use roads, aircraft operators must pay for the benefit of flying through sovereign airspaces, through overflight fees. This is a principle enshrined by the UN’s International Civil Aviation Organisation (ICAO), and for generations, it’s been a rule adhered to across the globe. For the countries in Africa that can collect them, these fees can be worth hundreds of millions of dollars annually. But their real value is greater, as overflight fees are mandated under UN law to be reinvested back into the airspace, ensuring safety and, crucially, infrastructure development that generates far broader economic value.
Fee avoidance continues to be an Africa-wide problem, preventing our skies from being a modern space of seamless travel and trade that can power our economic prosperity, and drive forward sustainable, self-generating development.
Government ‘struggling to point to tangible wins’ on trade policy, MPs find (The National)
There is “no guarantee” that post-Brexit trade deals will deliver any real economic benefits unless firms are given greater support to take advantage of them, MPs have warned. A cross-party report said the Government had not provided sufficient clarity about the “trade-offs” involved in the deals signed by the UK since leaving the European Union, particularly the impact on British farmers, while the environmental impact of increasing business with countries further afield than EU neighbours “remains uncertain”.
The Commons Public Accounts Committee also cast doubt on the Government’s goal of having 80% of the UK’s trade covered by free-trade deals by the end of the year, particularly as progress on an agreement with the United States is “on hold”. The MPs said there was a “lack of clarity” from the Department for International Trade (DIT) about how it will measure whether it is achieving any benefits from its negotiations on free-trade agreements (FTAs). “There is no guarantee that the agreements will deliver actual economic benefits unless the department provides vital support to help businesses use the agreements, particularly for smaller businesses wanting to export worldwide,” the report said.
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South African Local Government Association applauds inaugural dialogue (South African Government)
The inaugural dialogue aimed at connecting Local Government and objectives of the African Continental Free Trade Area (AfCFTA) has been welcomed as a progressive platform to stimulate continent’s-wide inclusive and sustainable industrial development amounting to $450 billion of regional income.
Presenting on the progress on the AfCFTA negotiations and implications for Local Government, Department of Trade, Industry and Competition (DTIC), Chief Director Niki Kruger says: “According to the World Bank, the AfCFTA will boost regional income by 7% or $450 billion, speed up wage growth for women, and lift 30 million people out of extreme poverty by 2035”.
“While some of the benefits of the AfCFTA would be derived from reduced tariffs, the biggest gains are expected from lowering trade costs by reducing non-tariff barriers and improving hard and soft infrastructure at the borders (trade facilitation measures). By 2035, the volume of total exports is expected to increase by $560 billion (29%) with intra-Africa exports increasing by 81% and exports outside of the continent by 19%,” she said.
MEC of Economic Development, Agriculture, Environment, and Rural Development, Parks Tau delivered a keynote address on Tuesday morning.
“It is logical that municipalities are adequately capacitated and resourced to leverage the attendant opportunities from the Free Trade Agreement. Since this Free Trade Agreement signifies a game-changer, its impact rests in the integration of Africa into a single continental market for trade and exchange of goods and services with an accompanying free movement of entrepreneurs and enterprises,” Tau says.
SA Investment Conference to focus on intra-Africa trade (SABC News)
The fourth South African Investment Conference will kick off on Thursday next week. This year’s conference will focus on South Africa remaining a key investment destination despite COVID-19. The conference which was postponed last year is expected to attract more than 1 000 delegates after COVID-19 regulations were eased. The Investment Conference was inaugurated by President Cyril Ramaphosa in 2018. The government has made a commitment to raise more than R1.2 trillion worth of investments over a five-year period. Special Envoy Jeff Radebe says this year’s investment conference will have a strong focus on intra-Africa trade and highlight the importance of the Africa Free Continental Trade Area. “An investment to South Africa without a corresponding investment to the great African continent will not assist us as Africans to attain our agenda 2063, the Africa we want. Africa Free Continental Trade Area must not just be a theory but it must be practical. We should look at other issues that stand in the way for Africa to trade as a bloc, how else are we going to be able to implement this free trade area if there are so many barriers.”
State to lift ban on scrap metal business (Business Daily)
The State now plans to lift a ban it imposed on export and dealings in scrap metal in a move set to offer a sigh of relief to traders whose businesses closed since the directive in January. Interior Cabinet Secretary Fred Matiang’i on Wednesday said the ban will however be lifted only if scrap metal dealers apply for fresh licences and join associations before being allowed to ply the trade. In the proposed regulations, Mr Matiang’i said that licensed dealers, millers, and smelters will be charged Sh250,000 in annual fees while agents and jua kali collectors will fork Sh150, 000 and Sh50, 000 respectively. “We are not going to allow the sector to continue operating in an unlicensed manner and no amount of political intimidation or pressure will make us abandon the resolve,’’ said Mr Matiang’i.”We are not building infrastructure for scrap metals vandals. We’d rather the scrap business died but we managed to protect our critical infrastructure.”
State unveils plan for control of gas prices (Business Daily)
The State will import 30 percent of cooking gas through the National Oil Corporation of Kenya in a move aimed at controlling the price of the commodity that has hit an all-time high. The National Oil’s quota is aimed at forcing cash-hungry private importers to lower the cost of liquefied petroleum gas (LPG) and ultimately retail prices. This follows the review of regulations that reserve 30 percent of cooking gas imports to the State corporation and carry out its role of influencing market prices. The corporation, formed to stabilise and influence fuel prices, has largely been forced to follow the dictates of the market controlled by private players.
Addis inks $29m deals with China firms for public transport upgrade (The East African)
Authorities in Ethiopia’s capital Addis Ababa have inked a deal worth $29.17 million with two Chinese companies to modernise the transport sector, the state-run Ethiopia Press Agency (EPA) reported Tuesday. The first agreement valued at $15 million will enable the Addis Ababa city government to purchase 110 buses from China’s leading bus maker, Yutong, within eight months. The city will also integrate digital systems in its public bus transport system among other upgrades at a cost of $14.17 million, according to details in the second agreement. The pact was signed between the Addis Ababa city administration and Chinese Hisense TransTech Co., Ltd. “The government of Ethiopia has planned to increase the total length of the express highways in the country to 1,600 kilometres over the coming ten years with a view to expediting the economic and social development of the nation as well as encouraging regional integration,” she said.
KEPSA recruits first beneficiaries of Kenya-US trade initiative (Capital Business)
The Kenya Private Sector Alliance (KEPSA), has announced the recruitment of the first cohort of twenty-five businesses in the Kenya-US Small and Medium Enterprises Trade Initiative. The twenty-five local SMEs, looking to either scale up globally or grow exports to the US market, will be provided with sector-specific information on business opportunities in the US markets. This is in addition to imports and exports business exchanges among other initiatives aimed at improving market access and linkages between SMEs in the two countries.
Signed in New York on November 2021 by Carole Kariuki, CEO, KEPSA, and Florie Liser, President and CEO, Corporate Council on Africa (CCA), in the presence of President Uhuru Kenyatta, the Kenya-US SME Trade Initiative aims to support greater US-Kenya trade under the African Growth and Opportunity Act (AGOA).
Second is the promotion of US-Kenya SME-driven trade and investment by capitalizing on and creating business relationships between Kenyan and US entrepreneurs as envisioned by the U.S. Prosper Africa Build Together campaign and initiative. Lastly, the initiative aims to develop a database and online market of trade opportunities that will allow Kenyan and US SMEs to connect with potential buyers, suppliers, financiers, investors, and other business partners.
Kenya to host region’s first trade facilitation summit (Kenya Broadcasting Corporation)
Kenya is set to host the first trade facilitation summit in the East African region as the country seeks to increase international trade. The one-day summit themed “Re-imagining Trade Facilitation in an era of Technology” to be held on March 31, 2022, is organised by the Kenya Trade Network Agency (KenTrade) as part of its 10 years of trade facilitation celebrations.
“Kenya is an important regional gateway to the landlocked East Africa and wider Great Lakes countries. The northern corridor links Kenya’s maritime port of Mombasa to Burundi, Democratic Republic of Congo, Rwanda, South Sudan and Uganda. This corridor mainly facilitates intra-regional trade and regional integration by ensuring the smooth movement of goods and persons across member states,” Wangora said.
Ensure High Packaging Standards - Small Enterprises Urged (News Ghana)
Mrs Delese Darko, the Chief Executive Officer of the Food and Drugs Authority, has charged Micro, Small and Medium Scale Enterprises (MSMEs), to ensure high standards in packaging their products to be competitive. She said packaging had been the major limitation for entrepreneurs in Ghana, adding that, if MSMEs wished to access the African continental free trade area then there was the need for them to pay attention to packaging. Mrs Darko said this at a two-day workshop on flexible food packaging for MSMEs organised by the FDA in collaboration with ePac-Ghana, Ghana Standards Authority, and Ecobank Ghana Limited in Accra. It was on the theme, “Building Capacity in Flexible Packaging to Enhance Food Safety & Quality for MSMEs in the Africa Free Trade Area”.
SME funding as panacea to Nigerian prosperity (The Guardian Nigeria)
According to the Nigerian Bureau of Statistics (NBS), Small and Medium Enterprises have contributed 48 per cent of Nigeria’s Gross Domestic Product (GDP) in the past five years. They account for 50 per cent of Nigeria’s industries and 90 per cent of our manufacturing, in terms of number of enterprises. A 2020 World Bank report notes that most Nigerian SMEs do not grow, they remain stagnant or exit. However, a few exhibit rapid growth in productivity and scale. Indeed, some startups shape the Nigerian economy through new and more productive business models. The World Bank report also noted further that compared to large firms, SMEs are more likely to fold up permanently. But a strong SME dominated economy bolsters the economy’s resilience in diversifying the domestic economy, thereby reducing fluctuations in the global and private capital inflows. Sadly, poor SME funding, and overregulation threaten the sustainability of SMEs. In a 2020 survey, 57 per cent of SME chief executives cited multiple taxes and levies and the absence of technological aid as challenges of SME growth. Lack of access to credit and overregulation remain the bane of SME development in Nigeria. Without finance to facilitate transactions, the entire SME supply chain comes to a halt. Trade finance becomes highly relevant here, by introducing liquidity via a Central bank of Nigeria (CBN) special allocation.
Inward FDI stock in Côte d’Ivoire grew fivefold over the past two decades (Ecofin Agency)
Côte d’Ivoire’s inward FDI stock rose from $2,483 billion in 2000 to $12,237 billion in 2020, according to UNCTAD estimates. With nearly 30% of the total FDI stock of the WAEMU, the country is the largest in the West African franc zone and the third-largest in ECOWAS. From $2,483 billion in 2000, the stock almost tripled to $6,978 billion in 2010 before rising to $12,237 billion by 2020, despite the covid-19 which severely disrupted FDI flows that year. This increase matches with the country’s macroeconomic performance over the period under review, and more specifically since the post-election crisis of 2012. “Since 2012, Côte d’Ivoire has embarked on a robust growth trend, which has been sustained beyond the typical rebound effect of a post-conflict situation. During this period, foreign direct investment (FDI) has increased significantly,” UNCTAD notes.
Trade Ministry presents 83 investment opportunities for local production (Daily News Egypt)
Egypt’s Minister of Trade and Industry Nevine Gamea announced that the ministry has prepared a list of 83 investment opportunities for local production.
Gamea noted that the ministry, represented by the Industrial Modernization Center, conducted an analysis of the import structure, where it was identified 131 products can be manufactured locally, which contributes to reducing the import bill.
She said that the ministry and its affiliated agencies will provide all forms of support and assistance to investors who want to direct investments to manufacture products that are imported from abroad, whether through directing new investments or making expansions for existing projects.
Egypt, Cameroon discuss developing economic relations (Daily New Egypt)
Egypt’s Minister of International Cooperation, Rania Al-Mashat, has met with Minister of Economy, Planning, and Regional Development for Cameroon, Alamine Ousmane Mey, as part of his visit to Egypt to participate in the 3rd Meeting of Governance Council of Arab Africa Trade Bridges Program.
Al-Mashat explained that the Ministry of International Cooperation is working to promote joint development between Egypt and the African continent by pushing for regional integration, and by enhancing expertise and knowledge-sharing while spotlighting Egypt’s own development experiences with other African countries. This is in light of the political leadership’s commitment to strengthening relations and supporting areas of development across the continent.
The Minister also discussed the first edition of the Egypt – International Cooperation Forum (Egypt – ICF), held under the patronage Abdel Fattah El-Sisi, which looked into strengthening multilateral cooperation post-pandemic.
Africa
No AfCFTA Without Exports - Krapa To Member States (News Ghana)
A Deputy Minister of Trade and Industry, Herbert Krapa has intimated that the objects of the African Continental Free Trade Area (AfCFTA) cannot be realized without a deliberate boost in the volume of exports by individual member states. He observed that the AfCFTA, touted as the new dawn of Africa’s integration agenda, holds a potential to advance equitable development for all with its ability to address the challenges of small fragmented markets and the promotion of economic diversification and industrialization. These benefits according to the Deputy Minister “cannot be achieved if the private sector is not empowered to export in significant volumes. Thus the case for constantly enhancing the productive capacity of our exporters could not be better made”.
Speaking at the Ghana Export-Import Bank Stakeholder Consultative Forum on Export Trade and Guarantee Facilities held in Accra on Tuesday, Hon. Krapa who is in charge of International Trade at Ministry of Trade and Industry said that global trade was facilitated by exports and consequently, exports was crucial to the success of AfCFTA.
Implementation of AfCFTA treaty would take place at local government (Devdiscourse)
The African Continental Free Trade Area (AfCFTA) has been welcomed as a progressive platform to stimulate the continent’s wide inclusive and sustainable industrial development, amounting to $450 billion of regional income. The development was welcomed during a two-day hybrid inaugural dialogue of the AfCFTA in Sandton. The dialogue was hosted by the South African Local Government Association (SALGA).
The African Continental Free Trade Area (AfCFTA) has been welcomed as a progressive platform to stimulate the continent’s wide inclusive and sustainable industrial development, amounting to $450 billion of regional income. The development was welcomed during a two-day hybrid inaugural dialogue of the AfCFTA in Sandton. The dialogue was hosted by the South African Local Government Association (SALGA).
The Covid-19 pandemic has highlighted Africa’s urgent need for better healthcare. Unequal access to vaccines , along with disruptions to supply chains caused by worldwide economic shutdowns have underscored the continent’s overreliance on medical and pharmaceutical imports. Investment opportunities in healthcare and pharmaceuticals sector are some of the areas being discussed at the Africa Investment Forum virtual boardroom sessions taking place this week. The Africa Investment Forum is a multi-stakeholder platform that advances private and public-private-partnership projects to bankability, raises capital, and accelerates deals to financial closure.
Under its Covid-19 response, the Africa Investment Forum is prioritizing sectors that can drive Africa’s resilience and accelerate the continent’s economic recovery from the impacts of the pandemic. “The Covid-19 pandemic has opened our eyes to both the necessity and the urgency with which we must create investment on the Africa Investment Forum platform,” says Chinelo Anohu, its Senior Director.
Lender Has $1 Billion Plan to Wean Africa Off Russian Wheat (Bloomberg)
A $1 billion plan to boost wheat production in Africa should be accelerated to avert potential food shortages arising from Russia’s invasion of Ukraine, according to the head of the continent’s biggest multilateral lender. The African Development Bank is raising the funds to help 40 million African farmers utilize climate-resilient technologies and increase their output of heat-tolerant wheat varieties and other crops, Akinwumi Adesina, the lender’s president, said in an interview. Wheat imports account for about 90% of Africa’s $4 billion trade with Russia and nearly half of the continent’s $4.5 billion trade with Ukraine, he said. “We are going to be really ramping up our efforts to mobilize that money,” Adesina said. “If there was ever a time that we needed to really drastically raise food production in Africa, for Africa’s food security and to mitigate the impact of this food crisis arising from this war, it is now.”
Industrial policy implementation key to driving structural transformation in Africa (Engineering News)
Achieving sustained growth in Africa, coupled with addressing some of its key challenges, requires a concerted focus on successfully implementing industrial policy, economists noted during a discussion at the launch of the African Programme on Rethinking Development Economics (APORDE) Alumni Network this week. Other key themes from the discussion included that the experience of South Africa, Ethiopia and Nigeria revealed the importance of industrial policy, which is dynamic and takes into account the context of different economies and sectors. Moreover, addressing constraints was noted as necessary across Africa to ensure countries are internationally competitive for realisation of export capacity. At the same time, a successful industrial policy should not be seen in a narrow way and should be aligned with other key policies such as macroeconomic policy, the discussion revealed.
Harmonisation of data protection laws: Smart Africa, NADPA sign MOU (Myjoyonline)
The Smart Africa Alliance (SA) has signed a Memorandum of Understanding with NADPA/RAPDP (Network of African Data Protection Authorities) to provide institutional support and enhance the enforcement capacities of the African National Authorities.
Initial discussions between Smart Africa and NADPA/RAPDP began in November last year in Benguerir, Morocco on the need to join forces as a region to enforce the harmonization of the data protection laws as a matter of regional interest.
Both parties have now convened at Dakar in Senegal to append their signatures to an MOU, after successful deliberations.
Policy tweaks that can raise leather production in EAC (Buhsiness Dailoy)
Leather is one of the most traded agro-driven commodities in the world. At an estimated annual market value of Sh22.8 trillion (USD 200 billion), leather’s revenues are higher than those generated from coffee, tea, rice, rubber, cotton, and sugar combined.Yet East Africa’s share of this pie is a paltry 0.24 percent or Sh54.6 billion (USD 478 million) with its contribution to the East African Community (EAC) Gross Domestic Product a mere 0.28 percent, according to the regional bloc’s Leather Strategy Implementation Roadmap for 2020-2030.This miniscule contribution runs counter to another reality: that East Africa’s leather sector sits on a rich raw material base, playing host to three percent of the world’s total bovine herd, five percent of the goats and two percent of the sheep.The strategy, referred to above, identified several obstacles, key of which is the absence of defined production standards.
Regional Forum Highlights Africa’s Importance for Achieving 2030 Agenda (IISD)
The UN Economic Commission for Africa (UNECA) held its 2022 regional forum on sustainable development. The meeting resulted in adoption of the Kigali Declaration on ‘good practices and solutions to enhance implementation of the sustainable development goals in Africa,’ which will be presented at the July 2022 meeting of the UN High-level Political Forum on Sustainable Development (HLPF). The eighth session of the Forum convened from 3-5 March 2022, in Kigali, Rwanda. Participations reviewed progress towards the SDGs, shared their national and subnational action plans, and exchanged recommendations on advancing the 2030 Agenda and the African Union’s Agenda 2063.
UN Deputy Secretary-General Amina Mohammed said three frameworks are the best blueprint for facing current challenges: Agenda 2063, the 2030 Agenda on Sustainable Development, and the Secretary-General’s report on ’Our Common Agenda.’ Mohammed said SDGs’ fate “will be decided in Africa,” and the region must have adequate financial resources to make needed investments in the future. She highlighted UNECA’s Liquidity and Sustainability Facility, a partnership with the private sector to facilitate sustainable investment. She also called for re-channeling special drawing rights to countries most in need and investing them in universal social protection and green aspects of the economy.
Digital Economy Could Reap Huge Benefits for Middle East and North Africa (World Bank)
The universal adoption of digital technologies in countries across the Middle East and North Africa (MENA) would reap huge socio-economic benefits, amounting to hundreds of billions of dollars each year and a much-needed surge in new jobs, according to a new World Bank report. The report, “The Upside of Digital for the Middle East and North Africa: How Digital Technology Adoption Can Accelerate Growth and Create Jobs,” offers sound evidence of how the widespread use of digital services such as mobile money and digital payments would boost economic growth. A core reason for this boost is that digital technologies reduce informational costs that constrain economic transactions, and those costs are lower when many more people use the technologies. The report indicates that fully digitalizing the economy could lead to a rise in GDP per capita of at least 46% over 30 years, or in dollar terms a long-term gain of at least $1.6 trillion. During the first year, this GDP per capita gain for the region would be almost $300 billion, the report estimates. The increase would be more marked in lower-income MENA countries (an increase by at least 71% since gains are driven by closing the access gap to digital technologies. The access gap is wider for non-high-income countries.)
African governments are turning to cryptocurrencies but can they team up? (Brookings)
Since 2018, eight African countries have launched initiatives to create government-controlled cryptocurrencies, otherwise known as central bank digital currencies (CBDC). Coming in the midst of a fintech boom that has seen investments in African startups surge from $130 million to $2.3 billion, a mammoth 20-fold rise, the effects of greater government involvement in the digital payment space are of interest to everyone—investors, banks, and consumers alike.
African government forays into digital payments at the consumer level, though, have not historically fared well.
What they might lack in savvy consumer apps, African governments make up for in the more boring enterprise-scale platforms connecting central banks, commercial banks, and big corporations. The Nigerian Interbank Settlement System (NIBSS), for instance, saw Electronic Fund Transfer transaction values increase by 50 percent in 2020, while the number of transactions recorded an even more mindboggling growth of 77 percent
This is why it is a pity that the national crypto projects announced since 2018 seem to be following the historical script of making the government the digital banker to the masses.
The privatization of money does have one interesting angle: the nexus between monetary digitalization and financial globalization. The enterprise-level bank-to-bank and payment systems connectivity platforms that African governments seem on the whole to have managed well sometimes crisscross national borders and thus increase the area for private fintech innovation.
The need to mainstream marine transportation across the African continent not only for improving connectivity and facilitating trade under the AfCFTA but also for pushing the green agenda, enhancing food security, and creating employment for the youth. Stakeholders from across the continent representing the various regional economic communities (RECs), national governments, development partners, and civil society organizations as well as the business community convened to discuss practical ways of boosting inland waterways transport and short sea shipping routes. Panelists unanimously called for greater investments in marine transport with the strong political will that ensures the effective mobilization of the right resources to boost that agenda. The one-day forum was on the theme: “Accelerating integrated and sustainable multimodal transport and logistics chains in Africa: the role of inland waterway transport and short-sea shipping”
Global economy
WTO DG Okonjo-Iweala Welcomes Breakthrough On Covid Vaccine Waiver (WTO)
“This is a major step forward and this compromise is the result of many long and difficult hours of negotiations. But we are not there yet. We have more work to do to ensure that we have the support of the entire WTO Membership,” the Director-General said. While the agreement between the European Union, India, South Africa and the United States is an essential element to any final deal, she cautioned that not all the details of the compromise have been ironed out and that internal domestic consultations within the four members are still ongoing. Moreover, she stressed that work must commence immediately to broaden the discussions to include all 164 members of the WTO. “In the WTO we decide by consensus, and this has not yet been achieved. My team and I have been working hard for the past three months and we are ready to roll up our sleeves again to work together with the TRIPS Council Chair Ambassador Lansana Gberie (Sierra Leone) to bring about a full agreement as quickly as possible. We are grateful to the four Members for the difficult work they have undertaken so far,” said Dr. Okonjo-Iweala.
South Africa hailed by WTO over compromise on COVID vaccine production waivers
Ukraine war’s impact on trade and development (UNCTAD)
An UNCTAD rapid assessment of the war in Ukraine’s impact on trade and development confirms a rapidly worsening outlook for the world economy, underpinned by rising food, fuel and fertilizer prices. The report published on 16 March also shows heightened financial volatility, sustainable development divestment, complex global supply chain reconfigurations and mounting trade costs. “The war in Ukraine has a huge cost in human suffering and is sending shocks through the world economy,” UNCTAD Secretary-General Rebeca Grynspan said in a statement. “All these shocks threaten the gains made towards recovery from the COVID-19 pandemic and block the path towards sustainable development.”
Standards committee advances transparency, discusses accreditation and digital issues (WTO)
The Committee held an in-depth exchange of experiences on conformity assessment procedures at a meeting on 8 March. A thematic session on accreditation featured case studies on how accreditation systems can reduce technical barriers to trade and facilitate trade through cooperation between accreditation systems in WTO members. Members underlined the importance of the International Accreditation Forum and International Laboratory Accreditation Cooperation frameworks while recognizing challenges with respect to accommodating diverse national or regional approaches. The session highlighted in particular how cooperation between accreditation systems has been crucial for accelerating trade in medical goods and personal protective equipment during the COVID-19 pandemic. Accreditation bodies worldwide turned to remote assessment to ensure continuity of their work while ensuring rigor and confidence in their assessments. More information can be found here.
New programme of action to assist countries graduate from LDCs (Malawi 24)
Acting High Representative for the Least Developed Countries (LCDs), Ms Heidi Schroderus – Fox, says implementation of Doha Programme of Action for LCDs will bring true change to people’s lives and livelihoods in the Least Developed Countries. Fox was speaking during a with President Lazarus Chakwera New York on Wednesday ahead of the Fifth UN Least Developed Countries (LDC) conference. She said a country that shows willingness to graduate from being ranked as least developed will do so with the assistance of the new programme of action. “Every country wants to move forward and this is what we are fighting for and as leaders we are working to bring all different partners to the table, to implement the new program of action that includes private sector all international financial organisations developing partners and all UN funds programmes agencies as well as women and youths,” she said.
Tapping digital tools in drive for sustainable blue economy driver (Business Daily)
Stakeholders are betting on technology in efforts to realise the potential of the blue economy, noting that the world should find ways to tap the tech-savvy youth to come up with solutions to spur the sector. Jacqueline Uku of the Western Indian Ocean Marine Science Association (WIOMSA) said that innovation in aquaculture could prove critical in saving marine life and boosting the livelihoods of communities living near oceans, seas, lakes and rivers. “We need to tap the talent of the youth who can create digital tools and software to make marine management easy,” she said. Speaking during a High-Level Side Event on blue economy at the culmination of the commemoration of the 50th anniversary of the United Nations Environment Programme (UNEP) in Gigiri, Nairobi, Dr Uku and other environmentalists asked countries to take the lead in pioneering innovative ways to ensure sustainable utilisation of the blue economy
Dr Jan Robinson, a government public sector representative from Seychelles narrated how his country laid out a blue economy strategy in 2014, banking on innovation. “Despite the challenges occasioned by the Covid-19 pandemic and the global geopolitical squabbles, innovation remains very important in sustaining the blue economy,” he said.
‘SA will continue its work with BRICS’ (SABC News)
South Africa says it will continue its work with BRICS (Brazil, Russia, India, China, and South Africa) irrespective of who chairs it. The country will be taking BRICS chairmanship next year. Chief Director for InvestSA at the Department of Trade and Industry, Sadick Jaffer says there is focused work that needs to be done between the BRICS countries on a regular basis despite what is happening in Russia. Speaking at the official press launch of the South Africa Fourth Investment Conference, In Johannesburg, Jaffer says trade between BRICS countries has actually increased over the past few years. “BRICS has a subcommittee and comprises of various subcommittees that meet and work together, to work on trade and investments. Once we take the chairmanship we become the driver of those processes.” He adds, “ Work has not stopped on the BRICS and we work together to continue to identify opportunities both for trade and investment. And we do work also to ensure that there is the ease of doing business between the countries actually gets rebait and gets easier to do business and we keep the relations going because trade and investment flows are long term processes.”
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Local news
CDC prioritizes jobs, SMME development (SAnews)
The Coega Development Corporation (CDC) continues to prioritise access to economic opportunities for the development of small, medium and micro enterprises (SMMEs) while providing job creation and related opportunities. “The CDC recognises that a thriving SMME sector is vital to delivering on the country’s economic development objectives,” CDC SMME Programme Manager Unathi Maholwana said on Monday. The CDC’s vision to champion socio-economic development remains central to its standing, as a preferred investment destination and trusted infrastructure implementing agent of choice in South Africa. “Our entire business model is based on the ability to deliver sustainable long-term business development while being cognisant of the need to improve the lives of people through job creation and related opportunities. Therefore, the focus on sustainability strengthens the value proposition for investors and clients of the future,” Maholwana said. She said the CDC recognises that a thriving SMME sector is vital to delivering on the country’s economic development objectives.
Climate change poses risk to gender equality (SAnews)
The Deputy Minister of Forestry, Fisheries and the Environment, Makhotso Sotyu, says the loss of biodiversity and its knock-on effect on livelihoods poses a risk to African women, leaving them even more vulnerable to the negative effects of gender inequality.
Addressing a side event on ‘African Women Resilience in the Context of Climate Change’ during the Commission for the Status of Women (CSW66) in New York on Tuesday, Sotyu said climate change is causing massive livelihood losses and damages for African women, including through the loss of biodiversity, among others.
“South Africa agrees with many other African countries that advocate for a need to integrate gender perspectives into our design, funding, implementation, monitoring and evaluation of policies and programmes on climate change. We further agree on gender mainstreaming across sectors at all levels of government,” the Deputy Minister said.
Kenya Worries about Chinese Imports (VOA)
People who make products by hand in Kenya, known as artisans, are concerned about competition from similar goods coming from China. Thousands of people are known for making items they sell at a large market in Nairobi. Data show Kenya imported nearly $4 billion of goods from China in 2021, but sent out only $1.5 billion to Asia.
Wohoro Ndhoho is an economics expert in Kenya. He said a lack of automation technology means most products made by Kenyans are handmade. That means for a product like a bread pan, it takes a Kenyan one hour to make the pan. In the same hour, a Chinese factory can make 1,000, he said.
The national organization that represents artisans who sell their goods at Kenya’s markets says the imports from China are hurting the country’s economy.
Tougher times for consumers as high transport costs kick in (Business Daily)
Kenyans are staring at tougher times as truckers announce a 5 percent increase in transport costs in the wake of a rise in fuel prices announced on Monday. The Kenya Transporters Association (KTA) announced immediate increase in transport charges starting Tuesday after the Energy and Petroleum Regulatory Authority (EPRA) announced a 10-year high fuel price in its latest monthly review. KTA chairperson Newton Wang’oo said fuel contributes up to 35 percent of total direct transport costs and indirectly affects other costs such as for tyres and spare parts since they are all imported. Mr Wang’oo said transport charges have remained constant from the period when the diesel pump prices in Mombasa were between Sh75 and Sh80 per litre compared to the current Sh108-110 per litre.
“Transporters’ margins can no longer sustain any increase in costs and regrettably have to pass on the increase to the cargo owner for road transport sector to survive,” Mr Wang’oo said. “KTA wishes to advise transporters countrywide to increase their transport rates by a minimum of 5 percent to sustain their businesses under current circumstances and to circumvent a total collapse of their businesses.”
SGR cargo volume up 5pc in February (Business Daily)
The volume of cargo transported on the standard gauge railway (SGR) from Mombasa to Nairobi went up 5 percent in February 2022 compared to a similar period last year, mainly on improvement on the trains’ off take from the Port of Mombasa. The Kenya Railways Corporation (KRC) said on Tuesday that 20,952 Twenty-foot Equivalent Units (TEUs) of cargo were carried on the SGR in February 2022 on the Mombasa-Nairobi route, up from 19, 911 TEUs moved in February 2021. The February performance translates into an average of 8.3 trains carrying over 698 TEUs per day (249 trains), against some 230 freight carrying trains that were reported to have made the trip in February 2021.
“This positive performance is also attributed to daily adequate supply of wagons for both containerised cargo and bulk units that averaged between 500 and 600 wagons,” said KRC managing director Philip Mainga in a statement.
Govt encourages use of modern tech in palm oil production (Dailynews)
THE government in collaboration with development partners has been encouraging the agronomy of modern palm trees, the use of quality and friendly processing technologies to obtain quality products. The Deputy Permanent Secretary of the Ministry of Industry, Trade and Investment (Investment), Dr Hashil Abdallah said accessing raw materials will enable productive, sustainable production to reduce imports of edible oil. Dr Abdallah was speaking at the opening of a palm oil chain entrepreneurship workshop in Kigoma on Monday to further efforts to increase the production and consumption of palm oil products in the Kigoma Region and Tanzania as a whole. He said the government has created a conducive environment for the creation of large, medium and small scale industries to increase employment and productivity for producers and quality products palm trees products such as palm oil, detergents and cosmetics and also is used to make soap, broom, carpet and alternative charcoal derived from tree and palm leaves.
GTA Ready For Africa Continental Free Trade Area (News Ghana)
The Ghana Tuna Association (GTA) has set-out modalities to take advantage of opportunities being offered through the Africa Continental Free Trade Area (AfCFTA) platform to expand its production and market for Tuna consumption in Africa. Mr Richster Nii Amarh Amarfio, GTA Secretary said there was the need for players in the tuna industry to take advantage of the AfCFTA to increase demand for its consumption, stressing that in order to get the canneries to deal with the challenges, there is the need to open up an Africa Market for Tuna.
Speaking at a conference on the theme: “Challenges and New Perspective of the Tuna Canning Industries in Africa,” Mr Amarfio emphasizes the need for African Union Member States to develop taste for Tuna. He added that the government must initiate policies that would help to reduce the cost of production both at the canneries and the fishing vessels to make tuna products from the canneries available on the Africa market at relatively low cost.
Ghana news agric can be game changer for afcfta html (Graphic)
With the COVID-19-induced recession subsiding as vaccination rates increase, there is great hope for the African Continental Free Trade Area (AfCFTA) to show that it could live up to its hype. Some progress has been made in the area of trade in manufactured goods, but agricultural trade remains below 20 per cent, the lowest in any region, compared to more than 60 per cent for Europe and Asia.
LCCI urges govt to create special funds for selected export businesses (Blueprint)
The Lagos Chamber of Commerce and Industry (LCCI), has said that for Nigeria to be a major player in the African Continental Free Trade Agreement( AfCFTA), there is need for government to pay more attention on promoting the non oil sector and create targeted funding for export oriented sector like agriculture, manufacturing, creative arts and entertainment.
The Director General of LCCI, Chinyere Almona who made this statement in Lagos at the 2022 Symposium of the Issuers and Investors Alternative Dispute Resolution Initiative (IIADRI) said this would help the country to enhance its competitiveness and rev up Nigeria’s share of global and Africa trade currently put at just 0.26 and 19 percent.
NEPC: Non-oil export increased by 56% to $3.45bn in 2021 (TheCable)
The Nigerian Export Promotion Council (NEPC) says Nigeria’s non-oil export products have increased by 56 percent, amounting to $3.45 billion in 2021. The council had announced N50 billion export expansion facility programme (EEFP) as part of the economic sustainability plan last year.
Ezra Yakusak, executive director, NEPC said the 2021 record is nothing compared to the $2.21 billion generated in 2020, adding that the council was able to achieve the feat as a result of the implementation of its current mantra, “Export for Survival”.
Nigerian-British Chambers To Unlock Trade Through Technology (Leadership)
The Nigerian-British Chambers of Commerce (NBCC) has stressed the need for Small and Medium Scale Enterprise (SMEs) operators and other managers to leverage technology tools to digitise their structures. At a press briefing organised by the NBCC to unveil its forthcoming conferences and exhibitions slated for March 22 and 23, 2022 in Lagos, the vice president, NBCC and chairman, Trade and Investment Committee, Akin Osuntoki said, the chamber was inspired to host the conference following significant changes in the business environment and the economy on the back of the COVID-19 pandemic, especially, with the use of technology, as well as the need to attract investors for economic recovery. Themed: ‘Fast-tracking Productivity; Leveraging Technology’, Osuntoki explained that, the conference and exhibition would be a platform for business leaders, investors, policymakers and other key stakeholders in the trade and investment ecosystem to network.
18,000 vehicles trapped as agents battle customs over e-valuation (Punch)
Last week, the management of the Nigeria Customs Service gave 30 days grace period for clearing of the backlogs of trapped imported vehicles due to the strike by agents. In this write-up, ANOZIE EGOLE examines what should be expected from the service at the expiration of the grace period For the past two decades, there have been constant pressures from clearing agents on the management of the Nigeria Customs Service, for a total overhaul of the duties payable on imported used vehicles.
The practitioners fingered discrepancies on duties payable on vehicles of the same make, year and model at different ports in the country as reason for the clamour for a total overhaul asking for uniform values on vehicles of the same year, model and make irrespective of the ports it came through to Nigeria. Customs officers were even accused of high handedness and manipulating the values by these agents because of their inability to come up with a uniform duty on imported vehicles.
Managing existential risk and climate resilience: The case of Nigeria (Brookings
The impact of climate change on Nigeria’s environmental and socioeconomic systems is compounding the country’s fragility risks. Extreme weather patterns—fiercer, longer dry seasons and shorter, more intense rainy seasons—are exacerbating challenges confronting local communities. Extensive cultivation and overgrazing have been compounded by desertification, rendering large swaths of land in northern Nigeria unproductive. Unpredictable and higher-intensity rainfall in southern Nigeria is resulting in a loss of crops and the displacement of communities. Depleting environmental resources in every part of the country pose a serious food security challenge in the face of a rapidly growing population. In fact, the 2021 Notre Dame Global Adaptation Index ranks Nigeria as the 53rd most-vulnerable country and the 6th least-ready country in the world to adapt to climate change. As a result, growing desperation over food supply is driving resource conflicts across Nigeria. In short, farmer/herder violence over the past decade has worsened and disrupted business operations across the country. Urgent action is needed to improve food and economic resilience to prevent deeper crises.
Supporting Egypt’s Inaugural Green Bond Issuance (World Bank)
On September 29, 2020, Egypt became the first country in the Middle East and North Africa to issue a sovereign green bond. Slightly more than a year later, with the publishing of its first impact report, Egypt’s example is inspiring other countries in the region—and emerging markets more broadly—to consider green bonds as a financial solution. The five-year green bond was initially announced for US$500 million, with an interest rate of 5.75 percent. The bond was more than seven times oversubscribed, which led the government to increase its size to US$750 million and to lower the interest rate to 5.25 percent (lower than Egypt’s benchmark conventional bonds). Moreover, the bond witnessed the participation of an unprecedented 16 new investors in bond issuances denominated in US dollars.
Egypt’s trade deficit down 22% in December 2021 – CAPMAS (ZAWYA)
Egypt’s trade deficit retreated by 21.6% to $2.41 billion in December 2021 from $3.08 billion in the same month of 2020, according to the latest data released by the Central Agency for Public Mobilization and Statistics (CAPMAS). The country’s exports hiked by 45.3% year-on-year (YoY) to $4.32 billion in December, compared to $2.97 billion. Egypt’s imports jumped by 11.3% YoY to $6.73 billion in December, compared to $6.05 billion.
On 9 March 2022, during the ongoing 28th Revised Kyoto Convention Management Committee’s Meeting, Dr. Kunio Mikuriya, Secretary General of the World Customs Organization (WCO), in his capacity as the depositary of the Convention, received the Instrument of Accession of the Union of Comoros to the International Convention on the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention - RKC) from H.E Mr. Mohamed Chatur BADAOUI, Ambassador of the Union of the Comoros to the Kingdom of Belgium, at WCO Headquarters in Brussels, Belgium.
Facing a global challenge due the COVID-19 pandemic, the WCO welcomes the growing number of Contracting Parties to the RKC, especially as it provides core provisions for the management of relief consignments during emergency situations and is at the core of the WCO’s Economic Competitiveness Package (ECP). Having entered into force on 3 February 2006, and with the accession of the Union of Comoros, the Convention now has 130 Contracting Parties. Mr. Souef Kamalidini, Minister of Finance of Comoros, appointed in 2021 after serving as Director General of Customs for five years, sent a special thanks to the WCO for its technical support in acceding to the RKC
Mozambique joins collaborative ICT data collection initiative developed by African Development Bank (AfDB)
The African Development Bank has extended membership of a digital data supervision system known as the Remote Appraisal Supervision, Monitoring, and Evaluation (RASME) project to Mozambique, making it the sixth African country to benefit from the tool which enhances project-related data collection in remote areas. RASME is a partnership of the African Development Bank and the World Bank’s Geo-Enabling initiative for Monitoring and Supervision and KoBoToolbox teams. The digital data gathering suite of tools being used for the RASME project is based on the KoBoToolbox platform, an open-source ICT solution developed by researchers affiliated with the Harvard Humanitarian Initiative. The initiative uses mobile devices and personal computers to enable Bank staff to remotely collect digital project data directly from the field in real-time. The onset of the Covid-19 crisis has sharpened the need for remote data collection tools.
According to Mozambique’s Deputy Minister of Economy and Finance, Carla Alexandra Louveira, “the operationalization of RASME will strengthen the oversight and monitoring capacity of project implementation and support a more effective decision-making process.”
African trade news
Trade finance and the efforts to boost intra-African trade (The Africa Logistics)
As stated by President of the African Development Bank (AfDB), Akinwumi A. Adesina, “trade finance is an important instrument for influencing Africa’s long-term economic development and structural transformation”. According to a report by the AfBB and the African Export-Import Bank (Afrexim), Trade Finance in Africa: Trends Over the Past Decade and Opportunities Ahead, the region was one of the most integrated with the rest of the world in 2011. However, in the last decade, Africa’s trade growth has been one of the worst among the major regions of the world. This is as a result of a number of factors including falling commodity prices, competition, inadequate foreign exchange liquidity, regulatory challenges and access to trade finance, as banks have gradually been scaling back activities from riskier markets.
Despite the persistently large trade finance gap, trade remains a key driver of Africa’s social and economic development. As a result, banks such as the AfDB and Afrexim have sought to stay on top of market developments and provide solutions to boost intra-Africa trade.
According to Baker McKenzie’s research with Oxford Economics – AfCFTA’s US$ 3 trillion Opportunity – there are now unprecedented opportunities for Africa, and its trading partners, to reap economic benefits on the back of the possible improvements in transport infrastructure, reduction of red tape for cross-border dealings, renewed funding and improved liquidity.
Ecopreneurs in Africa are restoring land and livelihoods (WEF)
Failing crops and flooding are among the climate impacts affecting lives and food security in Africa and forcing people to migrate. In the Sahel – a vast region below the Sahara Desert encompassing countries including Senegal, Mali, Niger, Chad, Nigeria and Mauritania – temperatures are rising 1.5 times faster than the global average, according to a report from the United Nations (UN) Human Rights Office. Mali’s agriculture capacity could fall by 30-40% because of climate change. In Senegal, fish stocks are already declining, dropping by 80% in 2017 alone. Clashes over land are growing, and people who migrate may face increased risks on the way and when they arrive, the UN says.
Held under the theme ‘Shaping Inclusive Growth and Shared Futures in the Fourth Industrial Revolution’ the 28th World Economic Forum on Africa will convene more than 1,000 regional and global leaders from government, business, civil society and academia. Regreening initiatives such as planting trees and recycling nutrients back into the soil are showing they can be a key part of the solution.
Limitations to the adoption of agri-tech solutions in Africa (Ventures Africa)
Agriculture is a cardinal driver of the African economy. About 60 percent of the sub-Saharan population are smallholder farmers, and 23 percent of the sub-Saharan GDP comes from just agriculture. With 60 percent of the world’s unused arable land and 54 percent of Africa’s population working in the sector, the continent has enormous agricultural promise. But there are challenges. Farmers lack access to quality seedlings, fertilizers, and best farming practices. Additionally, they are feeling the adverse effect of climate change. Thankfully, agritech startups are rising to solve some of these challenges.
Africa’s agritech space has shown impressive growth in the last few years. According to a report released by Disrupt-Africa, over US$19 million was invested in the Agritech sector in Africa between 2016- 2018. Last year, the space secured a total funding of US$95,101,000, an increase of 58.5 percent from US$59,990,000 in 2020. With a projected value of $1 trillion by 2030, the continent is poised to become the global centre of agri-tech solutions. But the market remains untapped. This is because, although agritech startups in Africa have been active in the market for about a decade, many agricultural sub-sectors are yet to experience technological transformation.
On another end, existing agritech startups face challenges in rolling out their products and services. Despite their efforts to promote the adoption of innovative technologies, many smallholder farmers are still alien to this new wave of development for several reasons. Farmers’ education is still an enormous barrier on the continent. Although times are changing, many smallholder farmers still have low levels of education. Some farmers never got above a middle school education, and many others are illiterate. These people often depend on traditional farming practices passed on by their predecessors. These methods of farming are unsustainable.
UN says West Africa’s food economy may hit $480 billion by 2030 (The Guardian Nigeria)
The United Nations in Nigeria has projected that the food economy in the West Africa and Sahel sub-region would hit $480 billion in 2030 with the non-agricultural sector accounting for 49 percent of the value added. The Resident and Humanitarian Coordinator for the United Nations in Nigeria, Matthias Schmale, stated this yesterday in Abuja at the 13th Multidisciplinary Team Meeting with the theme: “Joining Efforts to Build Resilient Agrifood Systems in West Africa and Sahel”. Schmale, who attributed the expected growth to the systemic approach undertaken by the Food and Agriculture Organisation (FAO) in securing the development gains in the fight against hunger, tasked West African countries to seize the opportunities for building resilient agri-food systems in the region. These significant trends, he said, provide great prospects for the West African food system to increase production, value addition, job creation, and food security.
Climate change has cost Southern Africa R640bn since 1980 (Engineering News)
About 36% of the natural disasters that have occurred in Africa in the past four decades were in Southern Africa and they carried an estimated cumulative economic loss of R640-billion. Alize le Roux, a senior researcher for African Futures and Innovation at the Institute of Security Studies (ISS), revealed this in a presentation on Tuesday during a virtual discussion titled: “What is Southern Africa’s plan for the climate crisis?” In her presentation, she also said there were 606 water-related disasters in the same period that led to loss of life, displacement, and the destruction of infrastructure and economic activities.
President Of ECOWAS Commission to Co-Chair Africa Investment Forum Virtual Boardroom On The Abidjan-Lagos Corridor Highway In Collaboration With The AfDB (The New Dawn Nigeria)
The President of the ECOWAS Commission, H.E. Jean-Claude Kassi Brou will Co-Chair a Virtual Boardroom to attract investors to finance the construction of the Abidjan-Lagos Corridor Highway Project with H.E. Solomon Quaynor, Vice President of the African Development Bank (AfDB) for Private Sector, Infrastructure, and Industrialization at 10:30 am (GMT) on the 16th of March 2022. The Abidjan-Lagos Corridor Highway is a project that aims to construct a 6-lane supranational highway with components to transform it into economic development corridor that interconnects 5 ECOWAS Member States (Côte d’Ivoire, Ghana, Togo, Benin, and Nigeria) thus, facilitating transport linkages, free movement, and improved cross border economic exchanges between the five (5) countries involved.
The Abidjan-Lagos Corridor Highway Project, which is being implemented fully in collaboration with the Corridor Countries, is key on the 2nd Priority Action Plan for the Programme for Infrastructure Development in Africa (PIDA-PAP II). It is also a priority under the new ECOWAS Vision 2050 which among other objectives, seeks to “Make ECOWAS a fully Integrated and Interconnected Economic Region”. Once completed, the corridor will boost trade (catalyst for the AfCFTA), instigate investment in other economic sectors, create employment opportunities for the citizens of Member States.
Global economy news
U.S., EU, India, S.Africa reach consensus on COVID vaccine IP waiver – sources (Mint)
The United States, European Union, India and South Africa have reached a tentative agreement on key elements of a long-sought limited intellectual property waiver for COVID-19 vaccines, sources familiar with the deal said on Tuesday.
The tentative agreement among the four World Trade Organization members still needs formal approvals from the parties before it can be considered official, the sources said. It would apply only to patents for COVID-19 vaccines, which would be much more limited in scope than a broad proposed WTO waiver that had won backing from the United States, they said.
Five Key Elements for a Gender Lens in Trade (IISD)
First, we need to clarify the meaning of—and distinction between—commonly used terms. The 2017 Buenos Aires Declaration expresses the concepts of gender equality and women’s economic empowerment. They are closely related yet distinct. Gender equality refers to the equal rights, responsibilities, and opportunities of women, men, girls, and boys. It implies that the interests, needs, and priorities of both women and men are taken into consideration, recognizing the diversity of different groups of women and men. Empowerment refers to whether women have the ability to exercise control and have options and choices over the practical and strategic decisions that shape their lives and their futures. Women’s economic empowerment is one means of achieving gender equality.
The Buenos Aires Declaration also speaks to the need to remove barriers to women’s participation in international trade and increase the number of women in such trade. Removing these barriers is a step toward economic empowerment and gender equality. In sum, increasing the number of women in international trade is a narrower objective than women’s economic empowerment, which in turn is narrower than achieving gender equality.
Informal Economy - Over 60% of World Workers Not Recognised, Not Registered, Not Protected (Inter Press Service)
More than 60 percent of the world’s adult labour force –or about 2 billion workers– work in the informal economy. “They are not recognised, registered, regulated or protected under labour legislation and social protection. The consequences can be severe, for individuals, families as well as economies.” The International Labour Organization (ILO) on 18 February 2022 on this issue reported that despite major efforts over the years, there are few signs of the informal economy shrinking in size. “In fact, the COVID-19 pandemic has pushed more workers into informal work to survive while highlighting the vital role access to social protection plays to support workers, especially when they are unable to work.”
The informal economy comprises more than half of the global labour force and more than 90% of Micro and Small Enterprises worldwide, the ILO informs in another report. “Informality is an important characteristic of labour markets in the world with millions of economic units operating and hundreds of millions of workers pursuing their livelihoods in conditions of informality.”
G20 DEWG Sets World’s Digital Economy Course, Minister Says (Mirage News)
For the last two years, digital economic activities have become one of the pillars that support the world and Indonesia’s recovery from the COVID-19 pandemic. Communications and Informatics Minister Johnny Gerard Plate said that Indonesia’s G20 Presidency is a historic momentum for the country to set the course of global digital economy development.”[The moment] strengthens the strategic role in navigating the world’s digital economic landscape development,” he said in Digital Economy Working Group Kickoff Meeting in Central Jakarta, Tuesday, March 15. According to Minister Johnny, the discussions, which will take place throughout March-September 2022, are also important momentums for Indonesia to guide dialogues between countries on global digital ecosystem governance issues.
Under the theme “Recover Together, Recover Stronger”, Indonesia’s G20 Presidency raises three priority agendas, namely inclusive global health architecture, digital-based transformation, and sustainable energy transition.
Cambodia shows LDCs how to get into ecommerce (Trade for Development News)
The coronavirus pandemic shut many business doors across the world, but it also opened windows to new digital possibilities, including ecommerce. A study by UNCTAD found that ecommerce’s share of global retail trade rose from 14 percent in 2019 to about 17 percent in 2020. Emerging markets saw the biggest shifts. Latin America’s online marketplace, Mercado Libre, doubled sales in the second quarter of 2020 compared to the previous year, while Jumia, an ecommerce platform in Africa, saw a 50 percent rise in sales in the first half of the year. However, the report found that businesses and producers in many developing countries have not done enough to take advantage of this shift to ecommerce. They are held back by, among others, poor internet access, an overreliance on cash, a lack of consumer trust, low digital knowledge and skills, and failure by governments to prioritize ecommerce.