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Third-quarter Real Economy Bulletin shows auto, iron, platinum export weaknesses (Engineering News)
While the sharp downturn in the latest gross domestic product (GDP) data is largely the result of the civil unrest in July, the third-quarter GDP data points to additional weaknesses in the economy, above all the sharp decline in automotive exports and plummeting prices of iron-ore and platinum, the third-quarter Real Economy Bulletin (REB) by thinktank Trade and Industrial Policy Strategies (TIPS) shows.
TIPS says there was a particularly sharp decline in automotive exports in the third quarter, adding that the automotive “industry faced a perfect storm”.
South Africa’s ‘decimated’ electronics sector could benefit from the AfCFTA – Patel (The Africa Report)
Cars, chocolate, customs harmonisation... South African trade and industry minister Ebrahim Patel tells The Africa Report that the country can help use its pools of capital to help stitch together the continent, give substance to the African Continental Free Trade Area, and help local
In a wide-ranging interview on the sidelines of the Intra-African Trade Fair, Patel gives The Africa Report insights about his thinking on how South African development finance institutions (DFIs) can fit into the continental trade agreement. The minister also speaks about where opportunities lay in the agreement for his country and about his ministry’s partners in government with regards to making the AfCFTA effective.
African bilateral relations a strong step towards Pan-Africanism (SAnews)
Minister of International Relations and Cooperation Dr Naledi Pandor says cooperation between African countries has become even more important as countries face the COVID-19 pandemic and economic challenges. She was addressing an end of year media briefing on the department’s implementation of South Africa’s foreign policy throughout the year. “South Africa is a strong proponent of African unity and solidarity. We believe that continental unity, peace and prosperity are best started at bilateral levels… when individual states reach out to other states and seek to forge closer bilateral ties. Stronger bilateral ties provide the foundation for greater Pan-African unity,” she said on Tuesday. The Minister said the country had embarked on forging those stronger bilateral ties over the past year with President Cyril Ramaphosa hosting a State Visit by Kenyan President Uhuru Kenyatta and the President embarking on visits to four West African countries.
Kenya’s economy has demonstrated resilience to the COVID-19 shock, with output in the first half of the year rising above pre-pandemic levels. In 2021 as a whole, gross domestic product (GDP) is expected to grow by 5%, one of the faster recoveries among Sub-Saharan African countries.
Overall economic performance is expected to be robust at 4.9% per year in 2022-23, similar to the pre-pandemic pace (5% average annual growth from 2010 to 2019). According to the 24th edition of the Kenya Economic Update, “From Recovery to Better Jobs,” growth has been supported by rebounds in industry and, especially, services. Agricultural output, however, fell by 0.5% year on year in the first half of 2021 following a particularly strong performance in 2020, partly due to below-average rains. Demand-side recovery has been supported by a revival in private consumption, against a backdrop of improving employment conditions and household incomes.
Trade dispute: Uganda considers ban on Kenyan produce (The East African)
Uganda is considering restricting some of Kenya’s raw and processed agricultural products from its market, saying it will be merely reciprocating Nairobi’s continued ban on Kampala’s produce. On Monday, the Ugandan Cabinet agreed to this nearly two-year proposal, which has often been opposed by President Yoweri Museveni.
According to Ms Rebecca Kadaga, the country’s `minister for East African Affairs, Cabinet directed the Agriculture ministry to identify and list Kenyan products that will be banned by the Ugandan government within “a short time.”
“We have been too patient. In the past, we have not reciprocated, but now we are going to. This has gone on for too long and within a short time they too will understand what we are going through,” Kadaga told the media on Tuesday morning. Kenya and Uganda have for a long time been embroiled in a trade dispute. The latest hostilities between the two EAC partner states began brewing in December 2019, when Kenya stopped importing Ugandan milk, particularly the Lato brand.
TZ, Kenya settle trade barriers (Dailynews)
TANZANIA and Kenya on Friday signed six Memorandums of Understanding (MoUs) and one contract aiming at strengthening further the existing bilateral ties and improving the economies. Sectors that were covered in the MoUs include immigration, prisons, health, housing, human settlement development and investments. Also, the control on livestock diseases in the border areas as well as the agreements on exchange of prisoners between the two countries featured in the pacts that the two nations inked.
Speaking shortly after having official talks and witnessing signings of the MoUs, President Samia called for continued cooperation for mutual understanding and improving trade and investment. She said that since the two countries are enjoying stability and diplomatic mutual understandings, then it was a high time to strengthen the ties on business and investments.
Botswana remains committed to SADC principles, ideals, values, goals and aspirations (SADC)
The Republic of Botswana remains committed to the principles, ideals, values, goals and aspirations of Forefathers of the Southern African Development Community (SADC) as outlined in the SADC Treaty, Honourable Ms. Peggy Serame, Minister of Finance and Economic Development has said. She was speaking during a courtesy call paid to her by SADC Executive Secretary, His Excellency Mr. Elias Mpedi Magosi, on the 10th December, 2021, in Gaborone, Botswana. Hon. Min. Serame congratulated the Executive Secretary for his recent appointment at the 41st SADC Summit of Heads of State and Government held in August 2021 in the Republic of Malawi. She reiterated Botswana’s commitment in playing her part to ensure that SADC remains relevant and stays on course to achieve principles, ideals, values, goals and aspirations as envisioned by the Forefathers during its formative years.
Exporter community urged to utilise ‘Impact hub’ (Graphic Online)
The exporter community in Ghana have been urged to make maximum use of the ‘Impact hub,’ a technology-driven export trade information centre set up to serve as a one-stop-shop for up-to-date export related information for stakeholders in the export sector. The Chief Executive Officer of the Ghana Export Promotion Authority (GEPA), Dr Afua Asabea Asare, who gave the advice said the hub was established to ensure that GEPA stayed on top of its responsibilities as a trade promotion organisation to facilitate easy access to up-to-date trade information and data. “This is what we have created for our exporters to come and feel free and be themselves to access all the information and learn everything they want to learn about exports.
Govt keen on providing enabling environment for private sector - Alan Kyerematen (Ghanaian Times)
The Minister for Trade and Industry, Mr Alan Kyeremateng has reiterated the government’s commitment to providing an enabling environment for the private sector to thrive and enhance economic growth in Ghana. In a speech read on his behalf at the opening of H&M Manufacturing and Hardware Limited’s new showroom at Spintex in Accra last Wednesday, he said, supporting the private sector would go a long way to ensure young people enter into entrepreneurship and create more jobs. “We would continue to ensure that we give the needed support to the sector to develop especially with the implementation of the African Continental Free Trade Area (AfCFTA) agreement which would provide a larger market for local industries,” he stated. H&M’s ambition of boosting the furniture and construction industry in Ghana he said, was in line with government’s industrialisation drive and efforts to create jobs for the future.
Ghana secures €82.5m EU concessional loan (Graphic Online)
The European Investment Bank (EIB) has provided Ghana with an €82.5-million concessional loan to strengthen health care, provide specialist medical equipment and medicines across Ghana under the National COVID-19 Health Response Plan. Under the concessional package, the funding comprises €75 million from the EIB and a €7.5 million grant from the European Union (EU) Commission.
India wants to expand areas of cooperation with Angola (Angop)
The Indian ambassador to Angola, Pratibha Parkar, Friday in Luanda said her country intended to expand areas of cooperation in Angola, as she considered the African country to have several investment opportunities. The Indian diplomat, who was speaking during a briefing with journalists on the occasion of the celebration of Christmas and 75 years of independence of her country, said they planned to expand cooperation in the areas of agriculture, using new technologies, diamonds, telecommunications, traditional medicine and pharmaceutical products, amongst others. The Indian diplomat noted that this factor was due to the fact that bilateral relations between the two countries were satisfactory, so they have been working to diversify relations in other areas of mutual interest, taking into account the huge opportunity for cooperation between the two countries.
Tunisia’s ‘ambitious’ plans for trade relations with UK outlined by ambassador (The National)
Tunisia’s Ambassador to the UK hailed the “positive and encouraging” developments in bilateral trade relations at an investment forum held in London. Speaking at the fourth Tunisia-UK Trade and Investment Forum, Nabil ben Khedher said Tunisia was an “attractive” business partner for post-Brexit Britain. “We are looking to boost trade in the agro-food, textiles and IT sectors” said Mr Khedher at the event hosted by the Arab British Chamber of Commerce. “Tunisia is an attractive and efficient place to manufacture goods for the UK … because of our past relationship with the EU, we can produce at a low cost and in a short time and can be a major partner for the UK textile and clothing industry.” Covid-19’s disruption of supply routes has drawn attention to the need to look to neighbouring countries, he said.
Africa
Rules of origin of goods subjected to tariffs, duties key for trade under AfCFTA: Tralac (SABC News)
The Trade Law Centre (Tralac) says trade under the Africa Continental Free Trade Area (AfCFTA) cannot start until tariff books reflect the outcome of the negotiations on tariff concessions, and the rules of origin for products are finalised. African countries were meant to have started trading under the AfCFTA from the 1st of January this year, however, negotiations among all 54 member states are still under way. Executive Director at the Trade Law Centre, Trudy Hartzenberg, says the rules of origin that stipulate which goods will be subjected to tariffs and duties must be finalised in order for trade to commence. The AfCFTA aims to phase out 90% of tariff lines over the next 10 years. “So there was a deadline set for the 30th of June this year to have all the tariff offers set on the table, and this has not happened and that hasn’t happened either. Some tariff offers have been made by the AfCTA secretariat but we’re still at a point where all member states have not submitted tariff offers that meet the modalities as agreed upon,” explains Hartzenberg. Hatzenberg says so far the rules of origin for 87% of tariff lines have been agreed upon.
Imperial: Examining AfCFTA to strengthen economic growth (African Review)
Imperial has launched a feature that delves into the African Continental Free Trade Area Agreement (AfCFTA) and its goal of seamless trade, travel and transport and a single African passport for all African Union member nations
The COVID-19 pandemic and vaccine rollouts have highlighted the importance of the logistics industry in Africa, as well as the opportunities this industry presents in terms of connectivity, distribution and supply chain efficiencies in key industries. The growing consumer base and increased access to the consumer in Africa are appealing to both multinational and local organisations.
However, logistics presents a major challenge, including the cost of moving products into and out of Africa being exorbitant in comparison to other continents, and getting those products to consumers in Africa remains complex. As one of the largest logistics players on the continent, and with logistics being integral to facilitating trade, Imperial believes that the AfCFTA will play an important role from a logistics and transport perspective as countries start embedding trade links.
Africa Free Trade Area, likely spur for growth and development (Modern Diplomacy)
With productivity-boosting measures, the African Continental Free Trade Area (AfCFTA) agreement could reduce poverty and inequality while spurring sustainable and inclusive growth, according to a report launched on Wednesday by the UN trade and development body, UNCTAD. The Economic Development in Africa Report 2021, underscores the importance of infrastructure financing that helps link up urban and rural areas, and equal access to opportunities and resources.
New opportunities for accelerating pan-African trade (UNCTAD)
The African Continental Free Trade Area (AfCFTA) has opened a new chapter for the continent and rekindled hopes for recovery through trade in a post COVID-19 world. As nations continue to battle a pandemic that does not respect national borders, the $3.4 trillion borderless market created by the AfCFTA presents an opportunity to reduce COVID-19 induced growth contraction, poverty and inequality trends, and spur sustainable and inclusive growth on the continent. Intra-African trade is currently low at 14.4% of total African exports. UNCTAD estimates that the AfCFTA could boost intra-African trade by about 33% and cut the continent’s trade deficit by 51%.
OBG: Africa experiences fragile growth across 2021 (African Review)
Oxford Business Group (OBG) have released a review of 2021 for Africa noting that while the continent saw growth across the year, its recovery remains fragile
OBG’s report stated that structural reforms were carried our in various countries in response to the pandemic with the World Bank praising the unification of exchange rates in Sudan, fuel subsidy reform in Nigeria and the opening to the private sector of the Ethiopian telecommunications sector. Another significant shift has been a growing emphasis on the importance of renewable energy. Most notably, Egypt aims to generate 42% of its power from renewable sources by 2035. One of the major milestones of 2021, the OBG report continued, was the launch of the African Continental Free Trade Area (AfCFTA) which came into effect on 1 January. It is widely hoped that this will give rise to an increase in the coverage and quality of infrastructure across the continent with many sectors expected to benefit (such as the textile industry).
Tanzania stalls Central Corridor modernisation (The East African)
The Northern Corridor Transit and Transport Co-ordination Authority (NCTTCA) says Tanzania is dragging its feet on geofencing a section of Singida-Kobero highway that would allow Kenya to use the new Voi-Taveta-Singida-Kobero link road. A road is considered geofenced when it has inspection points and cargo passing through it can be tracked electronically for taxation and avoidance of dumping of goods in a country. Geofencing guards against theft and loss of cargo while on transit. The NCTTCA said the delay is working against importers of cargo through the port of Mombasa destined to south Tanzania, Burundi and Rwanda who now opt to use a much longer route to import through the port of Dar es Salaam.
Speaking in Mombasa at the launch of training of heavy truck drivers, NCTTCA chief executive Omae Nyarandi said the delay is frustrating s section of importers using the Central Corridor. “Since the opening of the one-stop border post (OSBP) at Holili and completion of the Voi-Taveta road, the highway has opened up an alternative route to southern Tanzania and Bujumbura from the Mombasa port. But traders cannot use it since Tanzanian side has not been geo-fenced,” said Mr Nyarandi.
Africa needs policies to make youth technologically productive – Panelists (Ghana Business News)
African entrepreneurs say the continent needs deliberate policy to draw its skilful youth into key productive sectors to create wealth and economic value towards Africa’s quick recovery from the pandemic. They said such policies must attract the youth into areas like agribusiness and tourism with technological and innovative ideas. This was said during a panel discussion at the 3rd edition of the Kusi ldeas Festival in Accra. The panelist, all entrepreneurs, said that was the only way to solve the unemployment challenges that threatened the security of the continent. According to the Mo Ibrahim Foundation, around 60 per cent of Africa’s population is younger than 25 years.
Nigeria Calls for Strict Implementation of ECOWAS Competition Policy (This Day)
Nigeria has called for strict implementation of the competition policy of the Economic Community of West African States (ECOWAS) Regional Competition Authority (ERCA). The country also demanded strong protection against anti-competitive practices and other exploitative tendencies against consumers across the region. Trade experts in the country yesterday converge in Abuja to discuss ECOWAS competition policy. The sensitisation and advocacy programme was jointly organised by the Federal Competition and Consumer Protection Commission (FCCPC) and ECOWAS Regional Competition Authority (ERCA). The sensitisation and advocacy discussion was organised to bring Nigerians abreast of the necessary policies guiding trade, competition and consumer protection within the West African region.
Industry Perspectives: Lighting up Africa with renewable power projects (Global Trade Review)
Africa is rich in renewable energy sources and has an opportunity to leap ahead in the shift to clean energy with its vast solar, wind and hydropower assets. Supporting and investing in renewable projects will be crucial to enhancing power generation – a core objective for many African countries.
The African Trade Insurance Agency (ATI), a pan-African institution that offers political risk and trade credit insurance to companies, investors and lenders doing business in Africa, is providing extensive support to the power sector to enable economies to unleash their potential in renewables.
In this Industry Perspective, Obbie Banda, underwriter at ATI, discusses ATI’s resilience amid the pandemic, why it is crucial for players in trade to invest in clean energy in African markets, and how the energy landscape is changing across the continent.
Africa Regional Overview of Food Security and Nutrition 2021 (ReliefWeb)
Africa is not on track to meet the Sustainable Development Goal (SDG) 2 targets to end hunger and ensure access by all people to safe, nutritious and sufficient food all year round, and to end all forms of malnutrition. The most recent estimates show that 281.6 million people on the continent, over one-fifth of the population, faced hunger in 2020, which is 46.3 million more than in 2019. This deterioration continues a trend that started in 2014, after a prolonged period of improving food security. In addition to hunger, millions of Africans suffer from widespread micronutrient deficiencies, while overweight and obesity are already significant public health concerns in many countries. Progress towards achieving the global nutrition targets by 2030 remains unacceptably slow.
The time is ripe for Africa’s food policy to change (Mail & Guardian)
Global food prices have hit a 10-year high, and people in poorer countries, where food takes a bigger chunk of household spending, are especially vulnerable. Nations are scrambling to address the crisis, putting in place a host of policies that affect everything from tariffs to social safety nets in the hope of temporarily easing the pain. Adjustments in food policy are crucial not only for the short-term stabilisation of prices, but more fundamentally for the long-term transformation of food systems. The rapidly increasing cost of food is symptomatic of a wider dysfunction: food systems that lack resilience in the face of crisis and that feed crises of their own making, driving climate change and fuelling epidemics of hunger, malnutrition, obesity and diet-related noncommunicable diseases.
Global food prices have hit a 10-year high, and people in poorer countries, where food takes a bigger chunk of household spending, are especially vulnerable. Nations are scrambling to address the crisis, putting in place a host of policies that affect everything from tariffs to social safety nets in the hope of temporarily easing the pain. Adjustments in food policy are crucial not only for the short-term stabilisation of prices, but more fundamentally for the long-term transformation of food systems. The rapidly increasing cost of food is symptomatic of a wider dysfunction: food systems that lack resilience in the face of crisis and that feed crises of their own making, driving climate change and fuelling epidemics of hunger, malnutrition, obesity and diet-related noncommunicable diseases.
But this year of food crisis has also become a year of action on food. Dozens of countries and thousands of people came together earlier this year for the first United Nations Food Systems Summit. Participants coalesced around a broad goal: to transform food systems that are unhealthy, unsustainable and inequitable into systems that are resilient, nourishing, equitable and regenerative of the Earth. The Nutrition for Growth Summit this month provides another opportunity for a reset.
Ghana’s role is at the heart of the Africa and Europe partnership (EURACTIV)
The next EU-AU Summit will take place in Brussels in February. It should mark a turning point in relations between the two continents. In this context and while Africa-Europe relations will be one of the priorities of the French presidency of the European Union, the President of Ghana’s address to the MEPs during the last plenary session of 2021 is a real opportunity to strengthen relations between the two continents in which Ghana must play a key role. The country has a role to play in order to facilitate dialogue and enable partnerships that can transform Africa-Europe relations into action.
Ghana is scheduled to be removed from the EU list of countries with weak anti-money laundering and counter terrorist financing regimes. The country was placed on the list in 2019 but has since made significant efforts, including the transition to the new Anti-Money Laundering Act of 2020. This changes everything in the bilateral relations. Ghana has once again emerged as one of the leading African countries in which European partners and stakeholders can have confidence. Ghana’s exit from the list will facilitate financial flows to and from European countries, as it is no longer subject to automatically increased control. Indeed, these important reforms have significantly further strengthened the bilateral relationships across the EU and will allow Ghana to continue playing its key role and also lead the strategic and renewed partnership between Africa and Europe.
International
How aid for trade can best support Least Developed Countries in the next decade (Trade for Development News)
The median recovery time of least developed countries (LDCs) from the economic impact of the COVID-19 pandemic is three years, according to the International Monetary Fund. More worryingly, more than a dozen of them are likely to take at least five years to recover. As the recently released Least Developed Countries Report 2021 shows, trade can be a powerful tool to help LDCs accelerate their recovery by taking advantage of the rapid rebound seen in other parts of the global economy. However, for this to happen, LDCs need aid for trade to build their institutional and productive capacity. This has been very well recognised by LDCs; on 19 October 2021, trade ministers from almost 30 LDCs adopted a declaration outlining their priorities for aid for trade.
For the past ten years, the global share of LDC trade has hovered at around 1%, despite the target to double their share of global exports by 2020 as set out in the Istanbul Programme of Action for LDCs and SDG 17.11. The fifth United Nations Conference on LDC (UNLDC 5) in Doha in January 2022, where a programme of action for the coming decade is expected to be adopted, is an important opportunity for LDCs to bolster the share of international trade. Using this platform, how can the international community make sure that LDCs’ priorities are addressed? How can LDCs be supported to improve their trade performance and sustainably raise their share of trade in the global economy? How can aid for trade contribute to this endeavour? And what can be done differently?
Q&A: How IDA20 is an opportunity for health system strengthening (Devex)
COVID-19 vaccination rates in low-income countries — especially in Africa, where only five of 54 nations reached the year-end target of fully vaccinating 40% of their populations — are a “failure of the international community,” according to Axel van Trotsenburg, the World Bank’s managing director of operations.
In an interview with Devex ahead of the final round of pledging for IDA20 — the 20th replenishment of the bank's International Development Association — taking place this week in Tokyo, he said that the World Bank will step up support for vaccination efforts, including purchasing and deployment, but that the anti-poverty lender wants the increased spending on health to be an opportunity “to prepare against future crises, and that means systematic health system strengthening.”
Metals demand from energy transition may top current global supply (IMFBlog)
The clean energy transition needed to avoid the worst effects of climate change could unleash unprecedented metals demand in coming decades, requiring as much as 3 billion tons. Metal prices have already seen large increases as economies re-opened, highlighting a critical need to analyze what could constrain production and delay supply responses. Specifically, we assess whether there are enough mineral and metal deposits to satisfy needs for low-carbon technologies and how to best address factors that could restrain mining investment and metals supplies.
Related News
tralac Daily News
National
The advent of the COVID-19 pandemic and the rise of the Fourth Industrial Revolution (4IR) has accelerated the need for mobile applications (apps) in almost all businesses, work and life. Digitisation, remote flexible working and e-commerce have increased the global demand for software developers. The digital technology combined with the use of robotics is already dominating services and manufacturing industries amongst most competitive economies in the world.
As a result, there is increased demand for mobile apps among the majority of big firms and businesses. Mobile apps development is rapidly growing in areas such as retail, telecommunications and e-commerce, insurance, healthcare, social networks, sports, news, gaming and government.
Parliamentary Committee calls for government to facilitate local defence industry exports (Engineering News)
South Africa’s Parliamentary Joint Standing Committee on Defence has affirmed that the government should give the country’s defence industry the support it needed to ensure its sustainability. The committee did so in a statement released on Friday, in which it reported that it had received the ‘controlled item transfers’ reports, covering both defence imports and exports, for the second, third and fourth quarters of this year. “The committee noted that the impediments to exports that are creating a backlog of R3.5-billion in orders, especially from the Gulf region, is receiving the attention of senior government authorities,” it said in the statement. “The growth and strength of the South African defence industry is dependent on receiving and satisfying orders that will play a critical role in growing the economy and creating much-needed job opportunities.” However, the country’s defence exports had to comply with national legislation, international obligations and address proliferation concerns. It was necessary to maintain a balance between these issues and the preservation of defence industry jobs in the country.
Art, craft exports rake in US$5,2m earnings (Chronicle)
THE art and craft sector is fast gaining momentum on the export front after raking in US$5,2 million between and January and August this year. Through ZimTrade, the Government is working closely with players in the sector to unlock its wider potential and contribution to mainstream economy.
Ongoing business engagement programmes organised by ZimTrade to create sustainable and direct links between local artistes and buyers in international markets has seen the arts and crafts sector recording a 92,4 percent export growth in the first eight months of the year. “Statistics show that exports from arts and crafts sector grew to US$5,2 million during the period under review this year, from US$2,7 million during the same period last year,” said ZimTrade citing official data from ZimStat. “With current export promotion activities in which the sector in actively involved, projections are that figures will continue to grow.”
US mum on Kenya trade pact talks (Business Daily)
The US is mum yet again on the fate of a free trade pact after top American trade officials and their Kenyan counterparts held talks earlier in the week. Separate statements issued by both Kenya’s Trade Cabinet secretary Betty Maina and her US trade chief Katherine Tai, after a virtual meeting last Tuesday did not provide any timelines for resuming the stalled talks on the deal signalling a persisting deadlock. There has been growing unease in Nairobi about the delay by Joe Biden’s administration to conclude the deal. Both Nairobi and Washington, however, emphasised deepening trade engagement between the two countries.
The statement said the two Trade ministers guided their senior teams in the identification of “creative approaches” to key issues that would align the ongoing relationship to the “worker-centred trade policy in the US-Kenya trade and investment relationship,” while at the same time strengthening the US-Kenya economic and trade ties.
Kenya contracts US firm to find cheaper sources for liquefied gas (The East African)
Kenya has revived its ambitious natural gas generation project after it gave the greenlight to a US firm to conduct a feasibility study for gas power generation in Mombasa. This comes as Nairobi seeks to cut its reliance on Dar es Salaam for liquefied petroleum gas (LPG), which has seen the Tanga plant in Mtwara service nearly half of the Kenyan market, trucked via Namanga and Holili border posts. Despite Kenya and Dar signing an agreement to start working on a gas pipeline from Dar es Salaam to Mombasa, as part of a long-term project to share energy resources, Kenya remains open to other options including importing the commodity. This means, that the agreement between Kenya and Tanzania might be nullified if the company recommends cheaper means to get natural gas to generate power.
Tanzania eyes edible oils market (The East African)
Tanzania is now working closely with Uganda to study best practices that will help boost production of edible oil seeds going by Kampala’s success in producing palm oil. Last week, Tanzania’s Agriculture minister Adolf Mkenda was in Kampala on a study tour for the same. Prof Mkenda was accompanied by senior agricultural officials from key agricultural regions including Kigoma, which produces palm oil seeds. Prof Mkenda held discussions with the Ugandan Minister for Agriculture Frank Tumwebaze and agreed to cooperate in oil seeds production, marketing and agricultural research.
The minister said Tanzania was planning to increase production of improved sunflower seeds, groundnuts, oil palm and sesame, with an increased budget for extension and research services. The deficit is imported from Malaysia, India, Singapore and Indonesia at a cost of $204.7 million per year.
New roads, border posts open trade routes to DRC (The East African)
Uganda and Rwanda are banking on new roads, and border posts to boost access and trade with the Democratic Republic of Congo. Last Sunday, Uganda launched a road-building project aimed at boosting trade between the two countries. Sites for the roads were handed over to the contractor, Dott Services Ltd, a Ugandan construction firm, Kampala said in a statement adding that the roads “will open the eastern part of DRC to cross border trade with Uganda”. The 223km road network will connect Uganda to the cities of Beni, Goma and Butembo. Uganda had announced the plans to build roads in Congo in 2019. Kampala is keen to tap this market where decades of insecurity has meant local manufacturing is non-existent, forcing dependence on imported goods. Better access to trade with Congo would also help Uganda make up for export revenues lost after Rwanda, formerly a big market for Ugandan goods, shut their common border more than two years ago. These roads will bring jobs and interconnectedness with Uganda, Congo’s Minister for Infrastructure and Public Works, Alexi Gisaro Muvunyi said
You can’t remove subsidy without addressing macro-economic determinants, forex policy - Ex-Finance Minister (Nairametrics)
Dr Kalu Idika Kalu, former Minister of Finance has warned that addressing Nigeria’s subsidy issues by merely removing it will still bring Nigerians back to the same issues, including price differentials. The former Minister disclosed this in an interview with Channels Television on Sunday evening. “If you have the funds, you can cushion the impact on your producers by giving subsidy and that goes from farmers to manufacturers to all sorts of things. But you also have to weigh it against the cost of putting subsidy,” he said.
He stated that subsidy could be something used for a phase, and not an all-time thing. He said it could be phased because of the objective which is to encourage production, to improve resource uses and balance of resource allocation, and so on. “You can’t remove subsidy without addressing all the macro-economic determinants of domestic prices of petroleum, government control or other prices, including inadequate production, frictions in import flow or supply chains.
‘Natural Gas must power Africa’s industrialisation agenda’ (BusinessGhana)
The President of the Nigerian Gas Association and Managing Director of Shell Nigeria Gas, Mr Ed Ubong has made a call for the need to harness Africa’s natural gas for industrialisation and economic diversification. He said the vast gas resources available on the continent, especially in West Africa must be used to power the continent’s industrialisation agenda.
NTEs revenue slightly dips to US$2.85bn in 2020 (The Business & Financial Times)
Revenue from Ghana’s Non-Traditional Export earnings from January to December 2020 amounted to US$2.846billion, the Ghana Export Promotions Authority (GEPA) has announced. The amount indicates a decline of -1.84 percent over the 2019 earnings of US$2.899billion, with GEPA associating the minimal dip to the impact of COVID-19 on global trade. The fall, GEPA said, was due to a downward trend in the processed and semi-processed product sector’s performance, particularly cocoa-butter and canned tuna.
Egypt’s food exports up by 19% year on year in 2021: Trade minister (Ahram Online)
Gamea’s remarks came during her inauguration of the sixth edition of the Food Africa Exhibition on Sunday, which is being held in Egypt’s International Exhibitions Centre for two days from 12 to 14 December with the participation of 400 local and international companies. During her speech, which came on behalf of Egypt’s Prime Minister Mostafa Madbouly, Gamea said that Egypt’s exports of agricultural crops in the first nine months of 2021 hit $1.9 billion, compared to the $1.8 billion achieved in the same period last year, recording an 8 percent increase. Gamea noted that the most important agricultural crops exported include rice, grains, onions, garlic, potatoes, vegetables, fruits, citrus fruits, and peanuts, for which Russia, Saudi Arabia, Britain, and the United Arab Emirates are the most important markets for such Egyptian exports.
IMF Staff Completes 2021 Article IV Mission to Morocco
Morocco’s economy is rebounding. The economic recovery is expected to continue over the next few years, although the COVID-19 pandemic will leave some scars. The authorities have embarked on a broad range of structural reforms, which should be supported by an adequate financing plan and a coherent and stable macroeconomic framework. Reforms to extend social protection to all Moroccans remain a priority, together with efforts to boost private sector development.
Africa
Private sector will play key role in AfCFTA industrial development, economic diversification (Engineering News)
The private sector in Africa will play a critical role in speeding up industrial development and economic diversification, particularly in the context of the ongoing pandemic and other development challenges, as part of the African Continental Free Trade Area (AfCFTA), says logistics company Imperial Business Intelligence executive Mark Prommel and Imperial marketing and communications VP Melissa Arjoonan. The private sector accounts for about 80% of total production, 67% of investment, 75% of credit and employs 90% of the working age population in Africa. Several determining factors, including an enabling business environment, affordable connectivity, accelerated digitalisation and opportunities to forge strong public-private partnerships are crucial to ensuring businesses’ commitment to trade and investment in the AfCFTA, Prommel and Arnoonan say.
However, African countries imported R8-trillion worth of goods in 2019, only R1-trillion of which came from other African countries. There are vast distances between markets on the continent, which means that transferring products at different levels of the value chain can be costly. This challenge is further exacerbated by the lack of enabling infrastructure connecting countries, especially rail, which can provide cost-effective transportation.
Nigeria’s government ratifies Africa free-trade membership (Reuters)
Nigeria has ratified its membership of the African free-trade zone due to be launched in January, the government said, after initial reluctance to join the bloc for fear of exposing local industries to dumping by countries outside Africa. A cabinet meeting on Wednesday endorsed the president’s decision to join the African Continental Free Trade Area (AfCFTA) following the signing of agreements last year, Information Minister Lai Mohammed said. Mohammed said countries have until December to ratify the agreement, whose launch was pushed back after the new coronavirus pandemic made its original start date untenable.
To date, 30 countries out of the 55 states in the African Union have both signed and ratified the AfCFTA. Only Eritrea has yet to sign, according to Tralac, a South Africa-based trade law organization.
Africa’s Covid-19 recovery will be the slowest among the world – AfCFTA Secretary General (Business24)
Secretary General for the African Continental Free Trade Area (AfCFTA), Wamkele Mene, has disclosed that Africa’s recovery from COVID-19 will be the slowest among world regions due to limitations, fiscal constraints, monetary policies, insufficient support and the slow vaccine rollout. The pandemic has caused significant disruption, hardship and nearly every aspect of people’s lives have been affected in almost two years since its onset. The effect of the outbreak continues to weigh heavily on national economies. Moreover, the African continent is expected to transition from the COVID-19 induced recession of 2020. The expected growth rates of 3.4 and 4.5% in 2021 and 2022, respectively. Speaking at the 2021 Kusi Ideas festival organised by the Nation Media Group (NMG) in collaboration with the Ghana Tourism Authority, under the theme “How Africa transforms after the virus” Mr. Mene said, “There is a major need for African countries to step up and accelerate efforts towards transformation of our economies, diversified export markets, inclusive and sustained patterns of economic growth”.
Afreximbank Trade Finance Seminar seeks to boost Africa’s trade finance capacity, knowledge and innovation (Afreximbank)
The implementation of the African Continental Free Trade Area (AfCFTA) would spur Africa’s industrialisation and long-term supply chain resilience, Mr. Amr Kamel, Afreximbank’s Executive Vice President in charge of Business Development and Corporate Banking, said Tuesday as the Bank opened its annual Trade Finance Seminar (ATFS) and workshop.
He noted that the export sector inherited from Africa’s former colonial powers effectively forced the demise of African industry and created a reliance on imported manufactured goods and said that the establishment of the AfCFTA marked a strategic shift from small and fragmented markets across Africa towards regional markets that offered greater opportunities for economies of scale and for the deployment of regional integration to drive trade and development.
He, however, warned that, “A major challenge to the AfCFTA is the high trade finance gap, estimated at US$82 billion, according to a recent Trade Finance Survey jointly conducted by Afreximbank and the AfDB,” saying, “this lack of adequate trade finance is a significant non-tariff barrier to trade and can limit the full trade potential of the AfCFTA.”
‘Access to Market Intelligence, Trade Information Critical to Intra-Africa Trade’ (ThisDay)
The Chief Executive Officer (CEO), Compass Global Limited, Mrs. Tokunbo Chiedu, has said that access to market intelligence, finance, trade information, and market requirements are vital to deepen intra-Africa trade among small and medium enterprises (SMEs). Chiedu, who stated this in a statement in Lagos, said that this was important to foster new business opportunities, through business linkages and engagements.
Import demand likely to weigh on Cedi as year end approaches (Business & Financial Times)
The Cedi remained under pressure over the past week, sliding to 6.187 to the dollar from 6.16 at last Friday’s close. Ghana and the Cote d’Ivoire met this week to further formalise the Ivory Coast Ghana Cocoa Initiative, which is aimed at boosting cocoa farmers’ income. The two countries together account for 65% of global cocoa supply.
The agreement is likely to drive more exports and contribute towards a greater share of Ghana’s external FX reserves. However, due to increased demand for imports as the year draws to a close, we expect to see the Cedi come under further pressure in coming days.
EAC players seek to clinch Congo’s $2b market from S. African states (The East African)
East African states are scrambling to wrest the multi-billion dollar Democratic Republic of Congo (DRC) market from the Southern African players, buoyed by the prospects of Kinshasa joining the East African Community early next year.
The EAC Council of Ministers has cleared DRC for admission as the seventh member of the bloc, opening up a mass consumer market of about 90 million people and an economy rich in minerals and other natural resources. But, as the EAC partners fall over each other to win Congolese President Felix Tshisekedi’s eye, South Africa and Zambia, both members of the Southern African Development Community (SADC), continue to dominate the export market to Congo, raking in a combined $2 billion in exports in 2020, according to latest data.
4 African nations join hands to fight plastic pollution (Lokmat)
Four east African countries of Tanzania, Kenya, Uganda and Rwanda have joined hands to fight plastic pollution in the region, an official said Ana Le Rocha, the executive director of Nipe Fagio, said the four countries have decided to start a Single-Use Plastic Free East African Community (EAC) campaign to advocate against the use of single-use plastics in the region, reports xinhua news agency. Nipe Fagio is a Kiswahili slogan translated in English as ‘Give me the Broom’. It is a public advocacy organization that focuses on increasing awareness by facilitating and promoting sustainable development in Tanzania.
A draft report of the Central Africa Office of the United Nations Economic Commission for Africa (ECA) urges Central African countries to “capitalize on their unrivalled renewable energy potential to accelerate economic diversification.” On 10 December 2021, experts from all the countries of the sub-region approved the ECA report which will soon be presented to policymakers. The experts recommended in particular to ECCAS and the member States of the sub-region to adopt a sub-regional policy on renewable energy and to harmonize them at country level. They also expressed the need to strengthen the legal and institutional frameworks at national and sub-regional levels to support the development of renewable energy in Central Africa and then harmonize the relevant national policies.
Experts advocate the creation of a consortium for natural capital ownership in Central Africa (UNECA)
It is high time regional economic communities, in particular CEMAC and ECCAS, in cooperation with the United Nations Economic Commission for Africa (ECA) created a consortium on the use of natural capital accounting to stimulate economic diversification and industrialization with the private sector as key player. Such was one of the key recommendations of an expert session on “Natural capital accounting, reassessing economic wealth and broadening fiscal space in Central Africa” organized by the Central Africa Office of the United Nations Economic Commission for Africa (ECA) on 8 and 9 December 2021 in Brazzaville, capital of the Congo.
Central African economies would make a complete turnaround from exporting raw gems and other commodities, to a state of value addition and economic diversification, should they wake up to a new paradigm of leadership and transformational change, involving all segments of society. A series of high-level debates and group reflections at the 37th session of the Intergovernmental Committee of Senior Officials and Experts for Central Africa (ICE), at the Kintele International Conference Centre near Brazzaville, came to this overall conclusion, Friday 10 December 2021.
“We have highlighted the need to pull together public sector actors, the private sector and civil society, constituting a coalition of leaders to speed up economic diversification in our subregion, while putting into play the important roles of accounting for our vast natural capital and harnessing the subregion’s potential in producing and supplying renewable energy,” he went on. ECA’s Central Africa Office presented a study to guide strategies and actions to engender the changes being advocated styled: “A Trip to 2030: Fostering Leadership and Transformative Change or Economic Diversification in Central Africa.”
The draft legal texts for the operationalisation of the ECOWAS Regional Competition Authority were presented on Monday 6 December 2021, to the ECOWAS Parliament by a team from ERCA led by the Ag. Executive Director Dr Simeon Koffi and comprising Principal Programme Officer, Legal Affairs, Investigation, Compliance and Application of Law, Dr Yaouza Ouro-Sama.
The presentation was made to the joint Committee of the Parliament comprising members of the Trade, Customs and Free Movement as well as the Legal Affairs and Human Rights, in fulfilment of the provisions of Article 9.1b of Supplementary Act A/SA.1/12/16 of 17 December 2016 on the Enhancement of the powers of the ECOWAS Parliament, which prescribes the compulsory referral to the Parliament when the Treaty or one of its annexes is to be adopted or revised.
Following the presentation of the draft texts relating to customs by the Director of Customs of the ECOWAS Commission, ERCA presented to the Joint Committee the draft Supplementary Act amending the Supplementary Act on the establishment, powers and functioning of ERCA, the draft Regulation on the powers and composition of the ERCA Council, the draft Regulation on the procedures of ERCA, the draft Regulation on the rules of procedure for mergers and acquisitions as well as the draft Regulation adopting the rules on clemency and immunity in competition matters.
Uganda tops African Development Bank’s Electricity Regulatory Index for fourth consecutive year (AfDB)
“The unprecedented participation of so many countries shows the commitment to strengthen the countries’ regulatory environment with a view to improving the performance of the respective electricity sectors,” said Dr. Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth.
For the fourth consecutive year, Uganda’s electricity sector is Africa’s best regulated across a number of key metrics, according to the African Development Bank’s 2021 Electricity Regulatory Index. Other strong performers include East African neighbours, Kenya and Tanzania, as well as Namibia and Egypt. The 2021 Electricity Regulatory Index, an annual report, covered 43 countries, up from 36 in the previous edition, and assessed their impact on the performance of their electricity sectors. The index covered 3 countries in the North Africa region; 14 in West Africa; 6 in Central Africa; 7 in East Africa; and 13 in the Southern Africa region.
According to the report, the average performance on economic regulation has continued to decline since 2018. A third of countries surveyed indicated they lack methodologies to determine tariffs; another 40% rely on tariff methodologies that do not include key attributes such as automatic tariff adjustment and tariff indexation mechanisms and schedule for major tariff reviews.
International
Chair of fisheries subsidies negotiations outlines next steps for work in the new year (WTO)
“I met a wide variety of members and groups holding different views on different topics. Although there were different ideas about the specific timing, most, if not all, expressed a clear commitment to concluding these negotiations as quickly as possible,” the chair said at a meeting of the Negotiating Group on Rules following two weeks of consultations with members on key provisions in the draft agreement and on next steps.
Under the mandate from the WTO’s 11th Ministerial Conference held in Buenos Aires in 2017 and the UN SDG Target 14.6, negotiators have been given the task of securing agreement on disciplines to eliminate subsidies for illegal, unreported and unregulated fishing and to prohibit certain forms of fisheries subsidies that contribute to overcapacity and overfishing, with special and differential treatment being an integral part of the negotiations.
“Although MC12 has not yet been held, the text remains on Ministers’ desks, and we thus need to apply a high standard and discipline as we continue the work of the Negotiating Group,” the chair said.
High-Level Forum marks 20 years of China’s WTO membership (WTO)
China acceded to the WTO on 11 December 2001, becoming its 143rd member, following 15 years of accession negotiations. The high-level forum to mark the anniversary, entitled “20 Years of China’s WTO Membership: Integration & Development”, was jointly opened by WTO Director-General Ngozi Okonjo-Iweala and Ambassador Chenggang Li, Permanent Representative of China to the WTO. DG Okonjo-Iweala said that China’s accession to the WTO in 2001 was a “pivotal event in the history of the multilateral trading system”. Over the past twenty years, she said, China has been “a textbook case for how global trade integration can drive growth and development — the country’s economic rise has lifted millions out of poverty, not only within China but also in China’s trading partners across the developing world.”
DDG Zhang stresses importance of small business, blue economy for small island states (WTO)
It is my great pleasure to join you for this international conference under the auspice of the WTO Chairs Programme dedicated to advancing our understanding of the “Impact of COVID-19 on micro, small and medium-sized enterprises (MSMEs)” as well as the opportunities and challenges arising from a shift to an inclusive and sustainable blue economy for all.
The Covid-19 pandemic is having unprecedented impacts across the globe, especially on human health and economic activities. Governments are intensifying their efforts to combat the global spread of COVID-19 variants by enacting various measures to support public health systems, safeguard the economy and to ensure public safety. However, many developing and least developed countries are in lack of financial means to sustain their economies and protect the most vulnerable. Numerous micro, small and medium-sized enterprises succumbed to the shock and this had severe impact on the jobs situation and people welfare.
Small Island Developing States (SIDS) such as Mauritius have been facing the same challenges as other developing countries, if not more than others. The sanitary measures during the pandemic entailed a very high cost for the economy. According to the African Development Bank, Mauritius lost 18 percent points of growth in 2020, largely due to the disruption to tourism and hospitality industry in the country. While the economy recovered in 2021, the risk remains if new waves of COVID-19 lead to another temporary interruption of air links between Mauritius and Europe, the country’s main tourists source region.
At the WTO, Members have been considering MSMEs-related issues through policy dialogues and outreach events like this one organised under the auspices of the Chairs Programme. There are also focused discussions within the Informal Working Group on MSMEs. Just last Thursday, the Group launched its Trade4MSMEs online platform. It links to trade-related information to guide MSMEs through the complex process of trading internationally and to improve policy makers’ understanding of challenges faced by small businesses. I strongly encourage the authorities, businesspeople and relevant stakeholders of Mauritius to make use of the information there to promote the recovery and development of MSMEs in the country.
Calls for stronger digital rights, meaningful access, as Internet Governance Forum wraps up (United Nations)
The 16th Internet Governance Forum (IGF) concluded on Friday in Katowice, Poland, with a call to urgently connect the 2.9 billion people who still cannot access the Internet and to make the global network an open, free and safe space where everyone’s human rights and basic freedoms are respected.
Related News
tralac Daily News
National
New COVID strain hits revival of S.Africa’s international tourist trade (Reuters)
Omicron’s sudden emergence last month prompted the imposition of international travel curbs on southern Africa, hotspot of Omicron, that have “given us quite a setback again,” Harper, the company’s managing director, told Reuters. “Fifty percent of our bookings were cancelled for December alone,” he said, and 40% for January, he said at the Cape Town waterfront, with a view of its legendary Table Mountain behind him. “As a small business like ours, that’s probably about a million rand ($63,274.72)...lost in a very short space of time.” A succession of tough lockdown restrictions imposed in South Africa in 2020 hammered a tourism sector reliant on foreigners, with businesses closing and shedding thousands of hospitality jobs, before the curbs were eased earlier this year.
Survey finds travel restrictions imposed on Southern Africa ‘too strict’ (Engineering News)
A 48-hour flash survey by the Southern African German Chamber of Commerce and Industry (AHK Southern Africa) shows that 75% of the respondents, which are members of the chamber, indicated that staff or project personnel are required to travel to the European Union (EU), Germany or South Africa within the next three months and may be unable to do so at the current point in time. The ‘Travel Restrictions between South Africa and Germany/the EU’ survey also showed that 87% of respondents are worried that the current travel restrictions will have a negative impact on their business outlook for 2022.
South Africa urged to move quickly to capitalise on battery storage value chain opportunities (Engineering News)
An ongoing study funded by the World Bank under the guiding leadership of mineral research organisation Mintek has found that there are considerable opportunities for South Africa in the battery storage value chain. The country, however, needs to move quickly to capitalise on these opportunities to ensure that valuable resources and financial benefits do not leave the region, it was revealed during the World Bank’s Battery Storage Value Chain Creation in Southern Africa Online stakeholder engagement workshop, held on December 9.
UN seeks to unlock food security for Namibia (Namibian)
The United Nations (UN) Namibia resident coordinator Sen Pang, in a statement released on Monday, said all efforts through various modalities of cooperation, including joint analysis, joint advocacy, capacity building, procurement and delivery of service as well as dialogue, are critical. He was speaking at the third UN Namibia Sustainable Development Dialogue Series (SDDS) on financing food security with international financial institutions.
Harare embarks on a new economic resilience plan amidst the COVID-19 pandemic (UNECA)
Harare is embarking on a new economic and financial resilience plan, with the support of the United Nations Economic Commission for Africa (ECA), to tackle the effects of the COVID-19 pandemic and build its resilience against future shocks. The local government of Harare introduced the plan at a multi-stakeholder meeting in Harare on 8 December. When fully financed and operationalized, it will play a crucial role in building the city’s capacity to shield its economy and financial stability from future crises. Developed after extensive multi-sectoral consultations and an in-depth diagnostic study, the plan seeks to improve Harare’s labour market, financial system, infrastructure and connectivity, economic governance and business environment.
Zim Trade Receives €98, 000 Worth of Equipment and Technical Support (COMESA)
COMESA has supported the Zimbabwe National Trade Development and Promotion Organization (ZimTrade) with over Euro 98,000 worth of equipment, trainings and technical interventions. The equipment which includes laptops, Tablets, servers and other accessories were handed over to ZimTrade Director of Operations Similo Nkala by the project Manager Mr. Fambaoga Myambo at the COMESA Clearing House offices in Harare on 17th November 2021. The support will enable ZimTrade, to improve statistics that assist the Zimbabwean business community, to develop, promote and facilitate export of their goods and services to the world. The support comes under the Regional Integration Implementation Programme (RIIP II) under COMESA Adjustment Facility through Regional Integration Support Mechanism funded by the European Union.
More companies flee formal sector (Zimbabwe Independent)
ADVERSE shocks suffered by several Zimbabwean companies between 2018 and 2021 have seen most of them sliding into the informal sector as a coping measure, the Zimbabwe National Chamber of Commerce (ZNCC) has said. In its report titled Inaugural State of Industry and Commerce Survey 2021, released this week, the ZNCC said the effects of the Covid-19 lockdowns were also quite apparent in the first quarters of 2020 and 2021. It, however, noted that lockdown measures were a “blessing in disguise” for the Information Communication and Technology sector as most economic activities moved online.
Kenya paid China $256m to ease debt repayment standoff: reports (The East African)
Kenya wired $256.9 million to China in the quarter to September 2021 to ease a standoff over debt repayments that delayed disbursements to projects funded by Chinese loans. Treasury documents reveal that Kenya paid the millions in a period when Chinese lenders, especially Exim Bank, had opposed Kenya’s application for a debt repayment holiday. Kenya asked for an extension of the debt repayment moratorium from bilateral lenders, including China, by another six months to December 2021, saving it from committing billions to Beijing lenders.
The East African Community (EAC) hails the United Republic of Tanzania for her extensive contribution towards deepening regional integration and in turn increasing intra-EAC trade and development opportunities, as the country marks 60 years since independence.
EAC Secretary General, Hon. (Dr.) Peter Mathuki, underscored Tanzania’s critical role in the region, as she serves as the host of the EAC Headquarters in Arusha, Tanzania.
Tanzania continues to benefit from regional integration of the EAC. In 2020, Tanzania’s total trade with EAC Partner States amounted to US$1,136.9 million, higher than US$1,003.6 million in 2019. Tanzania has been recording trade balance surpluses since 2016, reflecting Tanzania’s increase in exports to other Partner States.
‘With AfCFTA, Tanzania must implement regulatory blueprint’ (IPPMedia)
Paul Makanza, the CTI chairman, made this appeal during the CTI annual symposium and general meeting in Dar es Salaam yesterday, focused on the theme “Implementation of CTI Strategic Plan 2021-2025 for Effective Advocacy in Improving the Business Environment.” He said the blueprint, prepared after thorough consultations with various private sector associations and World Bank officials, demands amendments of various laws including on Value Added Tax (VAT), regulatory bodies, immigration and labour issues, as well as social security and environmental management, among others.
“It is now more urgent than ever before, if we are to compete effectively in the domestic, regional and world markets. We commend the government for ratifying the AfCFTA and we hope that it will take all the needed reforms to enable the country to have active and competitive players as set out in the pact,” he said.
Ghana Non-Traditional Export earnings remain strong despite COVID-19 challenges in 2020 (Ghana Business News)
Revenue from Non-Traditional Export earnings remained strong in 2020, amounting to $2.846 billion, despite the disruptive effects of the COVID-19 pandemic on the supply chain, the Ghana Export Promotions Authority (GEPA) has said. The amount shows a slight dip of 1.84 per cent over the 2019 earnings of $2.899 billion due to the impact of COVID-19 on global trade and a downward trend in the processed and semi-processed product sector’s performance, particularly cocoa-butter and canned tuna.
In 2020, non-traditional export products were exported to 152 countries in European Union (EU) & the United Kingdom, the ECOWAS sub-region, other Developed Countries, the Rest of Africa and Emerging Countries. Export of Non-Traditional goods into ECOWAS was $783.83 million, a fall from $836.51 million, representing a 6.30 decline from the previous year. ECOWAS represented a 27.54 per cent share of the total export market.
Increase local refinery capacities, trade to create wealth – Deputy Energy Minister (GhanaWeb)
Increasing refinery capacities and deepening intra-Africa trade for oil and petrochemical products are two key measures for creating wealth for now and the future of the continent, Deputy Minister of Energy, Dr. Mohammed Amin Adam, has said.
He said, in efforts to boost economic growth in the oil and gas industry in Ghana and the continent, it is necessary to maximize refinery capacities through diversification and utilization to create wealth especially as the future of the space is uncertain.
“We should mobilise resources to trade among ourselves as Africans. We need to build our refinery capacities. This will enable us to create wealth together for now and in the future. We can transform our oil into petrochemicals that are needed everywhere in the world. Currently, the International Energy Agency estimated that in 2030, petrochemicals will account for a third of global demand for oil and by 2050 it will account for half,” he said.
Africa
Economic Development in Africa Report 2021: Facts and Figures (UNCTAD)
A key element of inclusive growth is to increase participation in economic activity and trade across income levels by increasing entrepreneurship and the employment of marginalized groups. Tackling recent intra-regional trade barriers, such as trade frictions from non-tariff measures (NTMs), regional infrastructure gaps and inadequate market information, can unlock an additional $21.9 billion in the short-term: $8.6 billion of untapped trade potential can be realized through tackling current market frictions (such as NTMs), regional infrastructure gaps and inadequate market information. $13.3 billion in untapped export potential is driven by GDP and population growth, which are expected to translate into increased supply and demand within the next five years.[1] However, the 33 African least developed countries account for only 16% of the untapped potential - the major African exporters hold the largest share: South Africa (36%), Egypt (15%) and Morocco (6%).
Afreximbank Trade Finance Seminar seeks to boost Africa’s trade finance capacity, knowledge and innovation (Afreximbank)
The implementation of the African Continental Free Trade Area (AfCFTA) would spur Africa’s industrialisation and long-term supply chain resilience, Mr. Amr Kamel, Afreximbank’s Executive Vice President in charge of Business Development and Corporate Banking, said Tuesday as the Bank opened its annual Trade Finance Seminar (ATFS) and workshop.
He noted that the export sector inherited from Africa’s former colonial powers effectively forced the demise of African industry and created a reliance on imported manufactured goods and said that the establishment of the AfCFTA marked a strategic shift from small and fragmented markets across Africa towards regional markets that offered greater opportunities for economies of scale and for the deployment of regional integration to drive trade and development.
Figure of the week: Africa’s trade in pharmaceuticals (Brookings)
Africa relies heavily on imported pharmaceutical goods to support the region’s health care needs: As of 2019, as much as 70 to 90 percent of the drugs consumed in sub-Saharan Africa’s estimated $14 billion pharmaceutical market were imported. Moreover, Africa represents nearly 25 percent of global demand for vaccines but produces only 0.1 percent of the world’s vaccines. Within Africa, 99 percent of vaccine doses are imported, and, of the 1 percent (12 million doses) produced domestically, most are relegated to the final fill-and-finish steps
As of 2019, the continent possessed roughly 375 pharmaceutical manufacturers, as compared to about 5,000 and 10,500, respectively, in China and India. Africa sources more than 75 percent of its pharmaceutical imports from the European Union, India, and China (Figure 1). Although the United States is the world’s third-largest exporter of pharmaceuticals by value, the U.S. represents only 4.4 percent of drug imports to Africa. When it comes to exports, Africa’s pharmaceuticals tend to stay within the region. As shown in Figure 1, more than half of exported pharmaceutical goods are destined for East and southern Africa. A small share of African pharmaceuticals is exported outside the region, mostly to the European Union, Yemen, and the United States.
‘The future of Africa is in our hands’ (Chronicle)
PRESIDENT Mnangagwa has implored African countries to capitalise on the dawn of the 4th industrial revolution to create an enabling intellectual environment that helps bridge the gap between the continent and the developed world. He was addressing delegates while officially opening the 18th session of the African Regional Intellectual Property (ARIPO) Council of Ministers conference in Victoria Falls yesterday. Experts have stressed the need to formulate and review IP policies in an endeavour to nurture and anchor innovation, competition and value addition.
‘Smart Multilateralism’ Needed in these Omicron Times (The Africa Report)
No sooner had word gone out that a new coronavirus variant has been detected in a traveller of South African descent than a torrent of decrees followed from Global Capitals shutting the door on South Africa. Before long, other African countries were falling like dominoes to this seemingly coordinated Global North Health Embargo. What message was being sent? That each country by unilaterally bolting its gates will be able to hold back the tide of a pandemic, alone? That contributing to our global understanding of the evolution of a world plague, by sharing the fruits of years of genomic capabilities development, should lead to a country being ostracised?
We in Africa have learnt the hard way that we are in an age where the old models of multilateralism have run their full course. Marked by slow bureaucracy and symbolisms of comity rather than pragmatic trust and modern instruments, this old multilateralism has frozen attempts to reform global trade to serve the people rather than corporations.
When COVID-19 threatened to disrupt Africa’s biggest multilateral endeavour in half a century – the Africa Continental Free Trade Agreement (AfCFTA) – “radical agility” became our only path forward. Through a combination of skillful compromises and modern technologies, we pressed on and ensured that the timeline for start of trading would be maintained. It was as clear as noonday to those of us championing African multilateralism that retreating behind the walls of nationalist survival would be continental suicide. It would also be generational suicide because COVID and AfCFTA are both once in a lifetime opportunities.
EALA: MPs must work to end intra-EAC trade impediments (IPPMedia)
Senior EALA member Abdikadir Aden, standing in for Speaker Martin Ngoga, said at an Inter-Parliamentary Forum on EAC Affairs high level dinner organized by East African Business Council (EABC) on Wednesday in Arusha. EALA members and other legislators across the sub-region should work to remove barriers and sort out disputes in trade and investments in the EAC bloc, he stated, noting that this is essential for increased economic growth and prosperity in the region. The EAC trading bloc was the fastest growing trade zone in Africa, he observed, asking that MPs work to ensure that national interests do not supersede EAC ambitions and aspirations.
EABC CEO John Bosco Kalisa said economic potential in the EAC bloc is hindered by the high cost of doing business arising from double taxation, persistent non-tariff barriers (NTBs), non-harmonized product standards and dissimilar policies on work permit, aside from telecommunication impediments.
Mainstreaming Gender in COMESA (COMESA)
Twenty-eight staff from COMESA Secretariat and its institutions have been trained on gender mainstreaming techniques to enhance application in the implementation of regional integration programmes. The training is also expected to strengthen institutionalisation and accountability mechanism for gender mainstreaming practice in COMESA. Director of Gender and Social Affairs at COMESA, Mrs Beatrice Hamusonde, who organized the four-day hybrid training forum, said mainstreaming of gender is an obligation of all COMESA staff in line with the COMESA Treaty, which provides for the twin track approach to the achievement of gender equality and empowerment of women. “The full inclusion of women in all parts of society including the economy, is of utmost importance. Without the active participation of half of the population of our region, we will not reach the regional, continental and global goals on gender equality and empowerment of women,” she said.
Call to fund COVID-19 initiative (SAnews)
President Cyril Ramaphosa has urged global leaders to come together to fully fund the Access to COVID-19 Tools (ACT) Accelerator’s new Strategic Plan to continue saving lives and end the pandemic.
Standard Bank Drives Sustainable Growth Of Africa’s Sugar Value Chain (Africa.com)
Many communities within sub-Saharan Africa rely on sugar not only as a source of calorific energy, but for the employment, industrialisation, and trade opportunities its value chain provides. The sugar industry continues to evolve and investment in supporting infrastructure as well as establishing supportive ecosystems and regulatory frameworks can help improve its global competitiveness and boost yield
“Sugar is one of the sub-sectors of agriculture with linkages throughout the economy and as Standard Bank, we are supporting the entire value chain with the aim of driving sustainable growth of this industry and that of the wider agriculture ecosystem on the African continent,” says Yinka Sanni, Chief Executive of Standard Bank Africa Regions. “Our strategy remains as follows: Africa is our home, we drive her growth, and the agriculture sector, with its massive social and economic footprint, is key to unlocking this growth.”
Increasing cocoa farmers’ income is our top ambition— Cocoa Initiative (BusinessGhana)
The Cocoa Initiative aims to achieve decent incomes for cocoa farmers in the two countries. The two countries account for nearly 65 per cent of global supply of cocoa. Speaking after the presentation of his credentials, Mr Alex Assanvo, Executive Secretary, Ghana-Cote d’Ivoire Cocoa Initiative, said the Initiative’s vision was based on the ambition of the two countries to move the share of the value back to the countries and to help farmers to get more. “The vision is increasing farmer revenue and that’s the top ambition,” he said.
Mining in Southern Africa 2021: Artisanal Mining Forms Large Part of the Industry (GlobeNewswire)
The “Mining in Southern Africa 2021” report has been added to ResearchAndMarkets.com’s offering. Southern Africa has produced a large number of minerals, including over 25% of the world’s diamonds, over 13% of its graphite and 10% of its uranium. The region contains deposits of a range of minerals, many of which are not exploited. Dozens of companies are actively exploring in the region, but challenges include a lack of skilled workers and inadequate infrastructure. While a large number of companies are involved in mining in Southern Africa, artisanal mining forms a large part of the industry
Unlocking Africa’s automotive aftermarket (CNBCAfrica)
Africa has one of the world’s fastest-growing populations. Early 2021 the United Nations estimates that the continent has 1.38 billion inhabitants, which will grow to 2.5 billion by 2050. It’s also the world’s youngest continent, with almost 60% of the population under the age of 25.
In addition to the severe impact of the Covid-19 pandemic, economic growth across African has faced many challenges over the years, from lack of investment to insufficient manufacturing capabilities, skills shortages, infrastructure demands and unstable energy supply. The African Union noted that only 16% of goods manufactured in Africa are traded on the continent. With the introduction of the African Continental Free Trade Agreement (AfCFTA), the face of Africa is transforming, providing opportunities for free movement of goods and people. AfCFTA holds the capacity to reshape markets and economies and accelerate growth across more than 50 African countries. It can also play a major role in unlocking the continent’s automotive aftermarket potential.
The automotive aftermarket industry is the market for replacement motor vehicle parts, accessories, components and tools, after a vehicle has been sold to a consumer. It includes the repair services and maintenance that dealerships sell to consumers.
Day One of US-Africa Energy Forum answers ‘Why Africa & Why Now’ question (Energy Power & Capital)
After a strong opening to the US-Africa Energy Forum, ministers and executives dove into the age-old investment proposition, ‘Why Africa and why now?’ If one thing became clear from today’s keynotes and panel discussions, it is that ‘Africa is open for business!’ Recent changes in regulation and the restructuring of the industry across the continent is accelerating African energy for the better.
H.E. Gabriel Mbaga Obiang Lima, the Minister of Mines and Hydrocarbons for Equatorial Guinea, emphasized the work that the nation has been doing to emerge as an energy leader in Africa. Equatorial Guinea is perhaps one of the best examples of US cooperation in African energy development. His Excellency stressed the importance of US-Africa energy collaboration as he announced that the country has signed a deal with Chevron and will soon be signing another deal with Marathon Oil.
China-Africa trade sees massive growth amid tough environment (The Citizen)
From January to October this year, China-Africa trade and the Asian giant’s direct investment in Africa both bucked the trend, reaching over $207 billion and $2.6 billion respectively, up 37.5% and 10% year-on-year, according to China’s ambassador to South Africa, Chen Xiaodong. Addressing a webinar in South Africa entitled: “FOCAC (China-Africa Cooperation Forum): Mapping China-Africa Relations Post-Covid”, Chen said China-South Africa trade delivered “a more robust performance”. “Our total trade reached around $45 billion from January to October this year, up nearly 57% year-on-year.
International
Monitoring report shows continued but slow rollback of COVID-19 related trade restrictions (WTO)
In presenting the report to members, Director-General Ngozi Okonjo-Iweala noted that since the outbreak of the pandemic, the number of COVID-19 related trade facilitating measures had outnumbered trade-restrictive ones by nearly two to one. She noted that of the 117 export restrictions WTO members and observers introduced, 45 export restrictions remained in place, covering products such as medicines, other medical supplies and personal protective equipment. “I urge members to roll back these restrictions as soon as possible as they may be hampering the COVID-19 response, including vaccine production and deployment,” she said.
“The monitoring report makes clear that the multilateral trading system has been, and continues to be, an important factor in our response to the pandemic,” the Director-General said. “But we also know that trade and the WTO can and must do more to foster production of, and equitable access to, sufficient quantities of COVID-19 vaccines, diagnostics and therapeutics.
Hopes, fears as uptake of telemedicine spreads (Business Daily)
According to the new research by Kaspersky, nearly nine out of ten healthcare organiSations in META provide telehealth services but 99 percent of patients have mistrust issues regarding their personal data privacy and security. Out of the 86 percent of the healthcares that use telehealth, 63 percent of respondents have experienced cases where patients refused telehealth services due to security concerns. With the effect of Covid-19 across the globe, most healthcare organisations invested more in telehealth and virtual care solutions. Just like a coin with two sides, the invention of mhealth apps has been received with mixed reactions.
“According to our research, 67 percent of META respondents believe telehealth services will add the most value to the healthcare sector within the next five years,” says the report, adding that professionals note that remote medicine is practical and attractive in many ways, with advantages such as immediate reach, less disease transmission between patients and staff, and the ability to help more people in a smaller time frame.
Africa’s embrace of smart multilateralism is manifest in being the first continent to agree on a common digital platform for biosurveillance and biosecurity. Absolutely convinced that the each-for-herself idea embodied in border closures has serious limits, we set out to work with the private and civil society sectors to create both institutional and technological innovations to keep the borders open but the virus out.
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Treasury notes IMF concerns (SAnews)
The National Treasury says the International Monetary Fund’s (IMF) concerns over the South African economy are aligned with government’s response programme to stimulate growth, which is guided by South Africa’s Economic Reconstruction and Recovery Plan.
In a statement on Wednesday, Treasury said the objective of consultations was to conduct economic and financial assessments of government policies and provide policy recommendations.
Treasury said the IMF staff’s preliminary findings pointed to a lack of progress in the implementation of structural reforms and continued weaknesses in state-owned enterprises (SOEs). It identified key risks and proposed policy recommendations.
South African Business Mood Worsens After Covid Curbs Hit Trade (BNN)
South African business confidence weakened in November as trade flows fell after a new wave of Covid-19 infections led to renewed restrictions among the nation’s major trading partners. A confidence index compiled by the South African Chamber of Commerce and Industry dropped to 92.8 in November from 94.9 in the previous month, the group said Wednesday in an emailed statement. “The foreign trade account was the main malefactor that pulled the BCI down -- month-on-month and year-to-year,” the chamber said. “Less merchandise import volumes and merchandise export volumes contributed to the decline in foreign trade.”
Govt to address business constraints (The Herald)
GOVERNMENT will deal decisively with any bottlenecks in the business environment to ensure the private sector operates effectively and efficiently in efforts to turnaround the economy, Vice President Constantino Chiwenga has said. Officially opening the Buy Zimbabwe-Buy Local summit in Harare yesterday, VP Chiwenga said the Government was implementing ease of doing business reforms, which seek to improve the business operating environment to positively impact on the country’s global competitiveness. “The economy of Zimbabwe will be led by the private sector, the role of the Government is to pronounce and make policies which will enable the private sector to carry out their business activities well.
The Buy Zimbabwe Summit was held under the theme ‘Anchoring Economic Growth on Local Content’, a thust VP Chiwenga said seeks to promote domestic production and consumption in line with the Local Content Strategy and the Zimbabwe National Industrial Development Policy 2019-
Zim targets value added agric exports to China (Chronicle)
ZIMBABWE is keen to secure joint venture partnerships with Chinese companies aimed at boosting agricultural production targeting selected crops, which will be processed locally and exported to the giant Asian market. China has committed to undertake 10 poverty reduction and agricultural projects for Africa under the broader China-Africa Cooperation drive.
On Tuesday Cabinet discussed the range of opportunities for Zimbabwe through this framework among other strategic partnership gains.
“The Government of Zimbabwe will ensure that Chinese companies work together with local farmers in joint ventures to grow crops such as soyabeans, cotton, groundnuts and tobacco, which are in demand in China,” said Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa in a post Cabinet media briefing. “These crops will be processed before export in line with the Focac Vision 2035 on promoting secondary industry in Africa.”
Hope for Kenya–US trade deal as ministers hold talks (The Star, Kenya)
Kenya and the US have revisited discussions on trade policies, giving hope to the stalled Free Trade Agreement (FTA) that started more than a year ago. This, as the Kenya remains keen to secure a free trade pact ahead of the lapse of the African Growth and Opportunity Act (AGOA) in 2025, which eliminates import tariffs on goods from eligible African nations. Negotiations for a FTA commenced on July 8 last year, during former President Trump’s administration, but were put on hold when the US went into elections in November, that saw President Joe Biden elected. Biden’s administration later opted to review modules that had been agreed, Kenyan trade experts note, a move expected to bring in fresh proposals for the trade deal.
“Trade ministers from the two countries guided their senior teams in the identification of creative approaches to key issues that would align the ongoing relationship to the worker-centered trade policy in the US – Kenya trade and investment relationship,” Kenya’s trade ministry said in a statement.
According to trade CS Betty Maina, Kenya is keen to tap at least five per cent of the US market, which has the potential to earn the country more than Sh2 trillion in export revenues annually. More than 70 percent of Kenya’s exports to the US are duty-free under AGOA. The Free Trade Agreement seeks to ensure fair, balanced, and reciprocal trade between the two countries, increase transparency in import and export licensing procedures, and secure comprehensive duty-free market access for each country’s products. The US is keen to secure comprehensive market access for its agricultural goods in Kenya by reducing or eliminating tariffs. The two countries also seek to develop rules of origin to ensure that the benefits of the agreement go to products from the United States and Kenya.
Mobile money transactions growth hits 10-year record (Business Daily)
Mobile cash transactions are on course for the highest annual growth in a decade, highlighting the economic recovery and the increasing use of cashless payments platforms. Central Bank of Kenya (CBK) data shows that Safaricom’s M-Pesa, Airtel Money and Telkom’s T-Kash agents handled Sh5.64 trillion in the 10 months to October, a 38 percent jump from the corresponding period last year. This is the fastest growth in cash handled by agents in the January-October period since 2011 — when it grew 60 percent to Sh938 billion — with monthly transactions likely to remain high this month due to the Christmas festivities that are characterised by heavy spending.
“Leading economic indicators point to a continuing recovery in the second half of 2021 also boosted by the full reopening of the economy,” said CBK governor Patrick Njoroge last week.
Kenya paid China Sh29bn to ease debt repayment standoff (Business Daily)
Kenya wired Sh29.86 billion to China in the quarter to September 2021 to ease a standoff over debt repayments that delayed disbursements to projects funded by Chinese loans. Treasury documents reveal that Kenya paid the billions in a period when Chinese lenders, especially Exim Bank, had opposed Kenya’s application for a debt repayment holiday. Kenya asked for an extension of the debt repayment moratorium from bilateral lenders, including China, by another six months to December 2021, saving it from committing billions to Beijing lenders. The moratorium started in January 2021.
Kenya’s plan to toll new Nairobi-Mau Summit highway faces opposition (The East African)
Kenya is seeking alternative routes for the Northern Corridor road network from Nairobi to Mau Summit through Nakuru as traders raise concerns over the expected increase in the cost of doing business in the East African region as the highway will be subject to state tolling. Kenya’s Principal Secretary in the Ministry of Transport, Infrastructure, Housing and Urban Development Mwangi Maringa told The EastAfrican that the tolled road network will be optional, and motorists who cannot afford the pricing will be provided with alternative routes. Maringa, however, did not specify the alternative route for the 181-kilometre road from Rironi (Nairobi) to Mau Summit through Nakuru.
The Nairobi-Nakuru-Mau Summit Highway is part of the Northern Corridor that is used in the transport of goods and passengers from the port of Mombasa through Nairobi to counties in western Kenya and Uganda, South Sudan, Rwanda, Burundi and eastern DRC.
The Kenya Association of Manufacturers noted that despite the benefits of tolled roads, the government’s plan to levy the Nairobi-Mau Summit Highway will lead to a high cost of doing business. “Transport and logistics play a critical role in the manufacturing sector. It is critical to ensure that such costs are reduced to enhance business competitiveness both locally and regionally,” Phyllis Wakiaga, the association’s chief executive told The EastAfrican.
We’ll help small businesses to understand AFCFTA - Catherine Afeku (GhanaWeb)
Former Minister of Tourism, Arts and Culture, Catherine Ablema Afeku, has been appointed to lead Strategic Communication of the National Coordination Office of the Africa Continental Free Trade Area. For the next year, her mandate includes ensuring that a lot of Ghanaian entrepreneurs gain maximum knowledge on the biggest trade deal in order for the country to make the necessary gains. The Ghana Coordination Office is part of the government’s policy measures to bridge the trade information gap on the agreement.
She stated that the AfCFTA is the game-changer for industrialisation in Africa and the growth of local SMEs adding that even though it will take time to fully grasp the dynamics of the trade deal it is achievable.
‘AfCFTA will grow states’ export capacity by $1.2b yearly’ (The Nation)
The Senior Special Assistant to the President on Public Sector Matters and the Secretary, National Action Committee (NAC) on the African Continental Free Trade Area (AfCFTA), Francis Anatogu has said the first goal of the implementation plan is to grow export capacity of every state to $1.2 billion focusing on specific products and service chains.
This, he said, will make every state and community in Nigeria economically viable and resilient through intra-Africa trade.
Anatogu who presented the keynote address yesterday at the opening ceremony of the 29th mandatory Continuous Professional Development Workshop of the Institute of Public Analysts of Nigeria (IPAN) with the theme: Africa Continental Free Trade Area (AfCFTA): The Crucial Role of Quality Assurance of Products.
For Madagascar, a Stronger, More Inclusive Private Sector Could Speed Growth (IFC)
Madagascar can create jobs, speed economic and fiscal recovery from COVID-19, and build a stronger future by introducing private sector reforms, improving the financial inclusion of smaller businesses, and strengthening competitiveness in key sectors, according to a World Bank Group report published today. The Madagascar Country Private Sector Diagnostic (CPSD) report, prepared by the World Bank and IFC, highlights the need for Madagascar to strengthen its business environment and increase competitiveness to attract investment, including into its high-potential agribusiness, apparel, and tourism sectors. The CPSD also outlines ways the country can alleviate constraints holding back productivity and investment in its energy, transport, and digital infrastructure sectors.
Senegal Drives Oil and Gas Trade Through Maritime Logistics Improvements (Energy Capital & Power)
Strategically located within regional and international trade routes, and forming part of the Trans-Saharan trade route, Senegal has managed to position itself as an African trade hub. The country’s trade industry relies predominantly on its ports, with the main Dakar port serving as a ‘gateway to Africa’ for global traders. For decades Senegal has been able to maintain a strong trade economy with the export of fish, phosphates, and groundnuts. Now, with the discovery of approximately 450 billion cubic meters natural gas, Senegal’s maritime logistics serve a critical role in the country’s energy sector expansion, scaling up distribution and trade.
Senegal Joins the African Trade Insurance Agency (ATI) as the 20th Member State on ATI’s 20th Anniversary (Africa Newsroom)
The Republic of Senegal joins the African Trade Insurance Agency (ATI) (ATI-aca.org) as its 20th member state on its 20th Anniversary. Senegal joins with a subscribed capital contribution of EUR15 million, following financial support from the European Investment Bank (EIB); With the addition of Senegal’s contribution, ATI’s total equity stands at approximately US$473.8 million, a 15% increase since December 2020; ATI is working with the Ministry of the Economy, Planning and International Cooperation, the Ministry of Finance and Budget and key partners of the Private Sector of Senegal to identify key support areas towards supporting Senegal’s National Development Strategy of an Emerging Senegal (PES) by 2035. In the short term, ATI expects to support projects valued at over US$ 1 billion in the Financial, Energy and Infrastructure sectors.
Mali suspends exports to protect food supply (World Grain)
The Western African nation of Mali has indefinitely suspended grain exports to protect its food supply as the United Nations said hunger is worsening in the area, Reuters reported, citing the Mali minister of trade and industry. Mali is a major exporter of grains to neighboring countries, exporting between 10% and 15% of its production. The suspension comes on the heels of a bad growing season and a shortage of rice and other grains on the international market.
Africa
Africa’s free trade area can deliver considerable inclusive economic growth for the continent (UNCTAD)
The African Continental Free Trade Area (AfCFTA) could reduce COVID-19-induced growth contraction, poverty and inequality trends and spur sustainable and inclusive growth on the continent if stronger support measures targeting women, young traders and small businesses are implemented, according to UNCTAD’s Economic Development in Africa Report 2021 published on 8 December. The report shows that trade policies alone are unlikely to support inclusive economic growth on the continent. Other measures needed to increase potential distributional gains from regional integration and help ensure inclusive development are cooperation in promoting investment and competition policies, accelerating financing of infrastructure that facilitates rural-urban linkages and providing equal access to socioeconomic opportunities and productive resources.
The report says trade liberalization, whether bilateral, regional or multilateral, entails some losses of tariff revenues and has redistributional effects. However, more international trade can also generate interregional knowledge spillovers, which could increase efficiency, diffuse technology and redistribute wealth. Intra-African trade is currently low at 14.4% of total African exports. It’s comprised of 61% processed and semi-processed goods, suggesting higher potential benefits from greater regional trade for transformative and inclusive growth, the report finds.
New ECA Report reveals AfCFTA’s impact on investment (UNECA)
The Regional Integration and Trade Division (RITD) of the Economic Commission for Africa (ECA) today launched a publication entitled: “Towards a Common Investment Area in the African Continental Free Trade Area (AfCFTA): Levelling the Playing Field for Intra-African Investment”. The report, launched on the sidelines of the Second Session of the Committee on Private Sector Development, Regional Integration, Trade, Infrastructure, Industry and Technology, provides concrete evidence and data to policy makers, media and business-owners on how they can take advantage of the economies of scope and scale of the envisioned AfCFTA Investment Protocol to attract investment. Presenting the report, Mr. Joseph Baricako, speaking on behalf of the Director of the Regional Integration and Trade Division (RITD) of the ECA, Mr. Stephen Karingi, said: ”To attract new FDI during the post-pandemic recovery and rebuilding stage, the upcoming AfCFTA negotiations should serve as a platform to harmonize investment rules and create a level playing field for investors.”
Connecting the world though trade (Construction Business News)
Africa has always been a strategic market for DP World, the Emirati multinational logistics company has been investing in the continent for a few years now. Earlier this year in April, it announced the launch of DUBUY.com, a global wholesale eCommerce platform, available first in Rwanda and Ethiopia with plans to expand across Africa and eventually around the world.DUBUY.com adds digital trading corridors to the physical corridors DP World has built across the African continent with its investment in ports, terminals, and logistics operations. “The marketplace represents a new model of partnership with the UAE, designed to strengthen the existing potential in Africa,” says Mahmood Al Bastaki, Chief Operating Officer of Dubai Trade World. “This technology allows home grown businesses to become international manufacturers and exporters – by linking them with new markets in Africa, the Middle East and eventually the rest of the world,” he adds.
Special Economic Zone Remain Pivotal To Africa’s Industrial Transformation (News Ghana)
Speakers at the sixth annual meeting of the Africa Economic Zones Organisation (AEZO) held in Accra, have reiterated the relevance of Special Economic Zones to the continent’s industrialization journey and the quest to connect Africa through trade.
They unanimously agreed that the effective of the SEZ regimes across the continent would create the much-needed jobs and open up Africa to investments.
Reports indicate that since its inception, African Economic Zones have given a significant boost to FDI flows by creating an attractive investment condition and supporting job creation. Most of Africa’s Special Economic Zones are found and well developed in 47 of the 54 economies on
the continent with the highest number in Morocco and Nigeria with the likes of Ghana speedily catching up.
Industrial policy makes a comeback in Africa (Brookings)
Industrial policy is seeing a revival in Africa and beyond. In fact, governments across the continent are now explicitly using a variety of industrial policy tools to promote industrialization through agro-processing, labor-intensive light manufacturing, natural resource extraction and value addition, some knowledge-intensive manufacturing, and “industries without smokestacks” such as high-value agriculture and tradable services.
This revival is driven by three main trends: Across the continent, countries are utilizing industrial policy tools; Industrial policy is seen to fail more often than it succeeds; Nevertheless, industrial policy often fails even to facilitate this learning by doing: That is because it is uniquely difficult to do well.
A high-level debate on the role of transformative leadership in implementing industrialisation and economic diversification strategies in Central Africa ended at the Kintele International Conference Centre near the Congolese capital, Brazzaville, Monday, with appeals for political predictability, adequate infrastructure, especially in energy provision, and a better segmented private sector.
“Central African and other countries of the continent already have abundant natural and human resources but the real leadership challenge is having the right regulatory frameworks for them to trade in goods and services with ease,” Said Margaret Oghumu, Associate Vice President for Power and Renewables at Africa Finance Corporation (AFC).
“We have a weak financial ecosystem that can support mostly short-term credits, and this is not appropriate for consequential investments for structural transformation,” she maintained. “We cannot industrialise without adequate access to energy,” Jean Luc Mastaki, Officer in Charge of ECA’s Subregional Officer for Central Africa, agreed.
“We cannot keep producing what we do no consume, while consuming what we do not produce” Mastaki lamented, while advancing the point that leaders should incentivise the private sector to engage in the production of items in demand in the subregion.
Over 90 registered participants from 30 Member administrations, Regional Economic Communities (RECs) and WCO Regional Offices for Capacity Building (ROCBs) participated in the WCO East and Southern Africa (ESA) and West and Central Africa (WCA) Regional Online Workshop on the WTO Trade Facilitation Agreement (TFA), which took place from 1 to 3 December 2021. The Workshop was organized with the financial support of the United Kingdom (UK) Government’s Foreign, Commonwealth & Development Office (FCDO), under the framework of HRMC - WCO-UNCTAD Programme.
This Workshop is the second one in the new round of regional workshops, since the entry into force of the TFA in 2017. The Workshop kick-started with updates on the latest developments regarding the TFA. It also focused on the success stories and the challenges Members are facing in implementing the TFA, as well as forms of support provided through the WCO Mercator Programme. Furthermore, the Workshop explored how the COVID-19 pandemic has impacted the international trade facilitation agenda and which measures are particularly relevant for the successful movement of essential goods, including vaccines, across borders. Participants had the opportunity to discuss the implementation monitoring methods at national level by using WCO tools such as the Mercator Maturity Model and the Time Release Study.
Digitalizing Africa’s mines (Brookings)
Mineral resources are a critical source of revenue for Africa. In 2019, minerals and fossil fuels accounted for more than a third of exports from at least 60 percent of African countries. The continent produces around 80 percent of the world’s platinum, two-thirds of its cobalt, half of its manganese, and a substantial amount of chromium, leaving it in a strong position to benefit from growing demand for these minerals. Moreover, Africa is believed to have some of the world’s largest untapped mineral reserves. Unfortunately, a lack of systematic geological mapping and exploration means that the full scope of the continent’s resources remains unknown. To unlock mineral-rich African countries’ full potential, mining companies and African governments must embrace Fourth Industrial Revolution (4IR) technologies. Artificial intelligence (AI), automation, and big data can help mining firms limit damage to the environment, improve working conditions, reduce operating costs, and boost productivity.
As mines become more productive—and more profitable—national governments will have more revenue to spend on investment in infrastructure, like roads, schools, and health clinics.
Vaccine hub will be a game changer for Africa (SAnews)
The African continent’s first messenger RNA (mRNA) technology transfer hub for COVID-19 vaccines will be a game-changer for the continent. “When outbreaks like COVID-19 happen, the whole world rallies around developing new technologies and vaccines. But we don’t know that we will have the same response if there is an outbreak that is only ravaging the African continent. So if we don’t build our own capabilities, then we will have a problem.”
Those are the reflections of the Department of Science and Technology’s Deputy Director-General for Technology Innovation, Dr Mmboneni Muofhe, in an interview with SAnews.
EU Covid travel bans against Africa are unfair: airline association (The East African)
European Union countries’ travel bans on African countries over the Omicron variant is discriminatory and will negatively affect the African aviation sector, the African Airlines Association (AFRAA) has said. AFRAA Secretary General Abdérahmane Berthé said the move by some Western countries amount to stigmatisation of Africa, especially South Africa which is among countries to detect the virus in its land.
COMESA Member States Meet to Validate Regional Resilience Framework (COMESA)
COMESA Secretariat has convened a regional meeting to validate the climate change Regional Resilience Framework (RRF) implementation plan and Resource Mobilization Strategy The meeting takes place on 8 – 9 December 2021 and provides a platform for Member States and key stakeholders to review the current draft RRF implementation plan and Resource Mobilization Strategy and provide inputs to the draft.
The meeting will discuss the implementation plan, financing opportunities and strategies for the regional resilience framework interventions.
CEMAC: Development bank BDEAC raises over XAF115 bln in the regional financial market for integration financing and economic recovery (Business in Cameroon)
The Development Bank of Central African States (BDEAC) recently concluded its bond issue baptized “ BDEAC 5.60% net 2021-2028 ” on the Central African regional exchange BVMAC. According to the results published in Brazzaville (Congo) on December 7, 2021, the BDEAC raised XAF114.8 billion during the operation, higher than the initial XAF100 billion it was sourcing.
The bank explains that the operation ran from November 15 to December 2, 2021, “involved every population group in the sub-region and the diaspora.” However, regional banks and microfinance institutions contributed the lion’s share of the funds raised by accounting for 89% of the whole envelope.
ECA and Partners release country reports on electricity market regulatory reviews (UNECA)
The Economic Commission for Africa (ECA) and the RES4Africa Foundation have jointly released a series of country regulatory reviews on electricity markets in Ethiopia, Rwanda, Zambia, South Africa and Ghana. The reports, which aim to support the crowding-in of scaled private sector investment in generation, networks and off-grid markets,were released on 8 December 20201 during an Expert Group Meeting on the theme “Enhancing Electricity Market Regulation in Africa to Accelerate Participation of the Private Sector in Infrastructure Investment,” The publications are a result of a productive partnership between ECA, through its SDG7 Finance initiative pillar area on energy sector governance, and the RES4Africa Foundation - through its Missing Links initiative.
In 2020 alone, the global energy market saw about $1.9 trillion in investments, of which emerging and developing countries attracted 1/5th. Africa captured only a fraction, signaling the crucial importance of addressing private sector investment participation challenges in the electricity market. Towards this end, addressing regulatory and policy challenges in the sector is essential.
Promoting energy access and trading in Eastern and Southern Africa (ESI Africa)
AMDA and COMESA have signed a memorandum of understanding (MoU) to promote sustainable energy access and energy trading across Eastern and Southern Africa. AMDA CEO Jessica Stephens: “The signing of the MoU is part of our efforts as AMDA to create the right policy and finance environment that will help African nations meet their growing energy and climate resilience needs.”
This will be supported by AMDA’s overarching commitment to work with COMESA states across the regions, to develop and implement policies and regulations which support minigrids as a tool to help Africa achieve DSG67 of universal access to affordable and clean energy by 2030.
Uganda tops African Development Bank’s Electricity Regulatory Index for fourth consecutive year (AfDB)
For the fourth consecutive year, Uganda’s electricity sector is Africa’s best regulated across a number of key metrics, according to the African Development Bank’s 2021 Electricity Regulatory Index. Other strong performers include East African neighbours, Kenya and Tanzania, as well as Namibia and Egypt.
The 2021 Electricity Regulatory Index, an annual report, covered 43 countries, up from 36 in the previous edition, and assessed their impact on the performance of their electricity sectors. The index covered 3 countries in the North Africa region; 14 in West Africa; 6 in Central Africa; 7 in East Africa; and 13 in the Southern Africa region.
“The unprecedented participation of so many countries shows the commitment to strengthen the countries’ regulatory environment with a view to improving the performance of the respective electricity sectors,” said Dr. Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth.
Changing tides for China-Africa cooperation: our key takeaways from the 8th FOCAC (ODI)
Historically the priorities of the FOCAC fora have mapped the changing tenor of the China-Africa relationship. Over the 2000s, this has shifted from natural resources trade, to investment, industrialisation and infrastructure. The 2010s saw a rapid expansion of official development finance from Chinese institutions, with pledged finance packages of $60bn USD announced via the FOCAC forum in 2015, and repeated (though with a slight reallocation) in 2018. Since then, however, there has been a clear slowdown in China’s overseas finance, prompted in large part by changing domestic conditions, but no doubt bolstered by the continued negative publicity around the false meme of Chinese ‘debt-traps’, and the very real contribution of Chinese loans to African debt service. As the dust has settled on FOCAC 21, what do the outcomes say about current China-Africa priorities?
Russia-Africa summit to prioritise economic, trade topics: Chad Foreign Minister (Devdiscourse)
The agenda of the 2022 Russia-Africa Summit will focus on economic and trade issues, Chadian Foreign Minister Mahamat Zene Cherif said in an interview with Sputnik. “I believe that this summit has already outlined a course under which it is necessary to increase economic and trade exchanges to promote the development of African countries. In this regard, I believe that economic and trade issues will occupy the central place on the agenda,” Cherif said.
International
Global merchandise trade exceeds pre-COVID-19 level, but services recovery falls short (UNCTAD)
UNCTAD’s Handbook of Statistics for 2021 published on 9 December nowcasts a strong increase of 22.4% in the value of global merchandise trade this year compared with 2020. The strong growth will push the value of world trade in goods about 15% higher than before the COVID-19 pandemic hit.
Trade in services, however, will still fall short of pre-pandemic levels despite the 13.6% growth nowcast for 2021 after a deep contraction recorded in 2020.
According to the report, world merchandise trade recorded a decline of 7.4% in 2020 during the COVID-19 pandemic. Global exports amounted to $17.6 trillion, a $1.4 trillion fall from the previous year. This was the biggest annual decline since 2009, when trade fell by 22%. The decline in global services trade value was much stronger, with a contraction of 20% in 2020 compared with 2019. This was the biggest decline in services trade since the beginning of its recording in 1990. In comparison, the value of trade in services fell by 9.5% in 2009 following the global financial crisis.
WTO report recommends ways to ease trade bottlenecks in landlocked developing countries (WTO)
“Easing Trade Bottlenecks in Landlocked Developing Countries” delves into the specific challenges that LLDCs face when trading internationally, including supply chain constraints, reliance on transit countries for imports and exports and the repercussions of the COVID-19 pandemic on LLDCs’ economies. The study finds that LLDCs’ trade costs are 1.4 times higher than those of developing countries with a coastline. It also details LLDCs’ vulnerability to climate change but notes the benefits that trade in services and e-commerce can bring to these countries.
In her opening remarks, Director-General Ngozi Okonjo-Iweala reiterated her commitment to promoting a more inclusive multilateral trading system: “LLDCs face particularly acute versions of realities that all members must grapple with, as complex emerging challenges, such as climate change, threaten development possibilities and future prosperity. We must leverage the potential of trade to meet these challenges. … We must also ensure that the gains from trade are equally distributed. Enhancing integration into regional and global value chains of women, youth and small businesses creates jobs and opportunities, and helps reduce inequality … In a world marked by the COVID pandemic, the paths that lead to economic growth cannot be separated from those that lead to inclusion.”
The Omicron shame: Why is the world punishing instead of helping Africa? (Middle East Monitor)
The decision by several governments across the globe to institute travel bans on seven African countries, starting on 27 November, due to the discovery of a new Covid-19 variant, Omicron, was perceived to be hasty in the eyes of some and fully justifiable on medical grounds, in the view of others. However, the matter is hardly that of a difference of opinion.
The swiftness of choking off some of Africa’s poorest countries, including Botswana, Lesotho and Zimbabwe, is particularly disturbing if placed within a proper context concerning the impact of the Covid-19 pandemic on the Global South, generally, and Africa, in particular.
“Excellent science should be applauded and not punished,” South Africa’s Foreign Ministry said in a statement, adding that the travel bans were “akin to punishing South Africa for its advanced genomic sequencing and the ability to detect new variants quicker”.
“What is going on right now is […] a result of the world’s failure to vaccinate in an equitable, urgent and speedy manner. It is as a result of hoarding [of vaccines] by high-income countries of the world, and, quite frankly, it is unacceptable,” Alakija said, adding that “these travel bans are based in politics and not in science”.
Internet Governance Forum promotes inclusive digital future for all (UN News)
The Internet Governance Forum (IGF) brings together more than 7,000 innovators, big tech executives, young people, ministers and parliamentarians to spur efforts to build an open, secure and free digital future for all.
The global crisis has highlighted the life-changing power of the Internet, he said, with digital technology enabling millions to work, study and socialize safely online. Yet it has also magnified the digital divide and the dark side of technology, as evidenced by “the lightning-fast spread of misinformation”, for example.
Given the impact of the pandemic on the digital landscape, the IGF “could deliver its promise for shaping a digital future for the world - turning the COVID-19 crisis into opportunities,” said Liu Zhenmin, the UN Under-Secretary-General who heads DESA.
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Economist: COVID effects will be determining factor in SA’s economic growth (Eyewitness News)
Economists say the effects of the Omicron variant and the ability of business to rebuild will be the determining factor of South Africa’s economic growth in the final quarter of this year. South Africa’s economy shrunk by 1.5% in the third quarter after growth in four consecutive quarters.
Decarbonisation roadmap highlights economic benefits and international support for South Africa (Engineering News)
Europe-Africa energy cooperation foundation Renewable Energy Solutions for Africa’s (Res4Africa’s) ‘Decarbonisation Roadmap for South Africa’ report highlights the economic benefits of modernising and decarbonising the country’s economy and demonstrates the broad international financial and technical support South Africa is receiving for raising and achieving its decarbonisation ambitions.
“The decarbonisation of South Africa’s economy has taken on much significance after COP26, which was preceded by South Africa revising and aligning its Nationally Determined Contribution (NDC) with the more ambitious global approach. Decarbonisation efforts received a boost with the $8.5-billion pledge as part of the Just Energy Transition Partnership with France, Germany, the UK, the US and the European Union,” said Res4Africa secretary-general Roberto Vigotti.
October trade deficit at N$7 billion (The Namibian)
DURING the month with some sort of normalcy in global trade such as October, Namibia slid back to its widened trade deficits, still exporting less than what is imported. For October, imports exceeded exports by a whopping N$7 billion, trade data for the month from the Namibian Statistics Agency (NSA) show. The previous months were better, the deficit then was only around N$3 billion. Owning to this bloated trade deficit is imports which increased by 25,1% year on year to N$15,3 billion in October. Exports on the other hand came in low at N$8,3 billion, though they increased by 5,8% from last year.
According to the NSA, Namibia by trading with other countries plays a crucial role in economic development as it links producers and consumers located in different countries into a global economic system. On a monthly basis, the value of exports dropped by 2,7%, whereas the value of imports increased by 32,2% m/m in October 2021.
‘Food, nutrition security remain priority’ (The Herald)
The Government of Zimbabwe remains committed to crafting political guarantees and an enabling policy environment that ensures food and nutrition security through broad-based partnerships, a Cabinet minister said yesterday. This comes as the Covid-19 pandemic continues to wreak havoc on global economies, and climatic conditions are ever-changing, thus obstructing vulnerable communities in both rural and urban areas from accessing safe and affordable food. Officially opening the Food and Agriculture Organisation of the United Nations (FAO) sub-regional office for southern Africa (SFS) 15th Multidisciplinary Team meeting (MDT) in Harare, Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka, said addressing challenges in the food system requires a holistic approach and broad-based partnerships involving all stakeholders.
In a speech read on his behalf by Deputy Minister Douglas Karoro, Dr Masuka outlined the ministry’s thrust to develop an efficient, competitive and sustainable agricultural sector that ensures sustenance at both household and national levels.
“The transformation of agriculture and food systems in Zimbabwe requires a well-coordinated multi-stakeholder drive to address the current inherent weakness and inequalities as we pursue the global drive to eliminate hunger and all forms of malnutrition by the year 2030,” Dr Masuka said.
Oil prices drop sharply, eyes on Kenya subsidy (Business Daily)
Crude oil prices have fallen sharply in the past two weeks on concerns over possible decline in global demand due to the Omicron variant of Covid-19, but Kenyan motorists risk missing out on the benefits should the government opt not to apply the price subsidy in the January 2022 review. International oil market data shows that the prices for the UAE’s Murban oil — Kenya’s main petrol source market — has dropped from a high of $83.60 a barrel on November 24 to $74 on Tuesday, having gone as low as $69 at the beginning of the month. But experts hold that Kenyans may not enjoy reduced prices for petrol, diesel and kerosene from next month adding that the State will likely opt to discontinue applying the subsidy that has been in place since April as it looks to replenish the fund.
Economic diplomacy bearing fruit: ZimTrade (The Herald)
THE economic diplomacy agenda being spearheaded by President Mnangagwa’s administration is bearing fruit as the country continues to record positive growth in exports, which shows the world is warming up to Zimbabwean products, ZimTrade has said. Guided by the mantra “Zimbabwe is open for business”, the Government is working closely with the private sector to revamp key productive sectors, as part of the broader economic transformation agenda, which is anchored on the rolling out of reforms aimed at enhancing the ease of doing business and stimulating both domestic and foreign direct investment. Creating an export-led growth and substituting imports are at the heart of this drive, which should culminate in the attainment of an upper middle-income economy by 2030.
Citing statistics recently released by Zimstat, Zimbabwe’s trade promotion and development agency, ZimTrade said exports grew by 47,46 percent to US$3,75 billion between January-August this year, from US$2,54 billion recorded during the same period last year.
IMF and indebted Zambia move toward a $1.4B rescue package (Devex)
Zambia and the International Monetary Fund have reached a deal on a $1.4 billion “Extended Credit Facility” for the nearly bankrupt country in what could be a key step to its economic recovery. An updated version of the rescue package was announced Monday, though IMF’s board must still approve it. Zambia will have to take steps to access the money, including showing “Sufficient progress” in talks with its many creditors.
The move will likely mean significant cuts to the country’s agriculture and energy subsidies, according to Finance Minister Situmbeko Musokotwane. Depending on how the reforms are handled, prices could go up, at least in the short run.
Nigeria’s foreign trade grew 10.43% in 2021 third quarter - NBS (Premium Times)
Nigeria’s foreign trade grew as imports rose significantly and showed a marginal increase in export, resulting in an unfavourable trade balance in the third quarter of 2021, the National Bureau of Statistics (NBS) has said. The bureau disclosed this in its Foreign Trade Goods Statistics Q3 2021 published on Monday. The NBS said total trade increased by 10.43 per cent in the third quarter, compared to the second quarter, and 58.59 per cent compared to the third quarter of 2020.
As for exports, the statistics office said the total exports in the third quarter of 2021 were recorded at N5,130.30 billion, translating to a 1 per cent growth compared to the second quarter of the same year and a 71.38 per cent growth compared to the third quarter in 2020. The report said export in the third quarter of 2021 was still oil-dependent.
Nigeria Targets Agriculture to Boost Economy (International Policy Digest)
Nigeria has had a tough two years since the pandemic began. The fall in crude oil prices in 2020, on account of falling global demand and containment measures to fight the spread of COVID, made the country enter a recession, reversing three years of economic growth. But with worldwide demand now booming and oil prices spiking, Africa’s largest economy is set to return to growth.
In 2020, Nigeria experienced its deepest recession in two decades, with the GDP shrinking by 3% as the fallout of the global pandemic hit aviation, tourism, hospitality, restaurants, manufacturing, and trade. But with restrictions being eased and oil prices recovering, the economy is projected to grow by 1.5% in 2021 and 2.9% in 2022, according to the African Development Bank (AfDB). Importantly, the government-initiated reforms at the height of the pandemic, to eliminate gasoline subsidies and increase transparency in the public sector, to counter the economic shock. These changes will benefit the economy in the medium term.
President transmits finance bill, urges partnership to improve health services (The Guardian Nigeria)
To expedite the passage of the 2022 budget by the National Assembly, President Muhammadu Buhari, yesterday, transmitted the Finance Bill 2021 for the consideration and approval of the lawmakers.
He explained that the bill seeks to support the implementation of the 2022 ‘Budget of Economic Growth and Sustainability by proposing key reforms to specific taxation, customs, excise, fiscal and other relevant laws. The President added that the bill provides for enhanced domestic revenue mobilisation efforts to increase tax and non-tax revenues and ensure tax administration and legislative drafting reforms, particularly to support the ongoing automation project of the Federal Inland Revenue Service (FIRS).
Implementation of AfCFTA will boost the country’s balance of payment (News Ghana)
The Ghana Employers Association (GEA) says the African Continental Free Trade Area Agreement (AfCFTA) will boost the country’s Balance of Payment as local enterprises flourish on its platform.
Mr. Daniel Acheampong, the GEA President, said there was no doubt, employment, and per capita income levels would also be boosted to help improve the quality of life of the people.
He called on government to develop far-reaching strategies to ensure that Ghanaian employers benefited significantly from the proposed Pan-African Payment and Settlement System (PAPSS) by the Afrexim Bank.
Free Zones Authority to build 3 industrial cities (Graphic Online)
The Ghana Free Zones Authority (GFZA) and the Ministry of Trade and Industry are in the process of developing three separate industrial cities in the country to boost the government’s industrialisation agenda. Known as the Special Economic Zones Project, the industrial cities are being developed in the Ashanti, Western and Eastern regions to serve as additional industrial hubs that could facilitate the processing of natural resources into value-added goods for the export market.
Burundi validates its AfCFTA National implementation Strategy (UNECA)
An Experts’ meeting to validate Burundi’s implementation strategy for the African Continental Free Trade Area (AfCFTA) started this Tuesday in Ngozi, Burundi. The meeting will discuss a range of sectors that could help the country benefit from the agreement. The two days-meeting is organized by the UN Economic Commission for Africa (ECA) in collaboration with Burundi’s Ministry of Trade, transport, Industry and Tourism and the Ministry of Foreign Affairs and Cooperation. About 60 experts that including government officials, Burundians traders and economists are participating in the meeting.
Speaking on behalf of ECA in Eastern Africa, Ms Mama Keita recalled that liberalization of trade under AfCFTA will harbour great benefits for Burundi and Africa at large. “Everyone will gain, including small and medium-sized enterprises (SMEs)” she said. Ms Keita stressed that AfCFTA could double Eastern African exports to the rest of the continent in sectors like textiles and clothing, and expand significantly light manufacturing and agro-processing sectors.
Malawi, Zambia vow to boost trade and investment cooperation (The East African)
Malawi and Zambia will seek ways to cooperate more on trade and investment opportunities, Malawi President Lazarus Chakwera said Tuesday during a one-day meeting with his Zambian counterpart President Hakainde Hichilema.President Chakwera added in a joint press briefing at Kamuzu Palace that key areas of trade and tourism need to be further explored as the two countries share a long border.“Our relations have to be nurtured and watered and we are here to confirm that the relations are important,” President Hakainde Hichilema said. “Zambia and Malawi have long standing, shared historical values which we must all harness and celebrate. A good neighbour is a protected neighbor,” President Hichilema added.
This visit comes at a time when both Malawi and Zambia are facing internal issues.
Farmers to benefit from Cote d’Ivoire-Ghana Cocoa Initiative (Business Ghana)
The Executive Secretary of the Cote d’Ivoire-Ghana Cocoa Initiative, Mr Alex Arnaud Assanavo, has pledged to secure decent incomes for cocoa farmers in the two countries in honour of their toils and for the sustenance of the industry. Mr Assanavo said it was right that cocoa farmers in Ghana and Cote d’Ivoire were properly remunerated to compensate for their investments to motivate them to sustain and increase production of the crop.
“The vision of the initiative is to move the value from cocoa production back to cocoa farmers in the two countries; it is to increase the revenue of farmers,” Mr Assanavo explained.
Senegal, DRC could soon reach new deals with IMF (Ecofin)
As Covid-19 continues to spread, African countries still lack sufficient financial resources to get their heads above water. Following the allocation of $650 billion in Special Drawing Rights (SDRs) to facilitate the global recovery, the IMF committed to developing countries, particularly in Africa, to ensure that their share of this financing would reach $100 billion. This commitment is based on a principle of solidarity between the richest countries and the poorest. But almost four months after the SDRs are issued, only Canada, France, the United Kingdom, Japan, and China have publicly committed to this process.
While Africa continues negotiations to secure additional doses of the Covid-19 vaccine, it has also begun a strategy to strengthen local production. The Institut Pasteur in Dakar is expected to play a special role in this strategy, especially since Macky Sall will be chairing the AU in 2022. For now, the continent’s rapid economic recovery is conditioned on the implementation of a mass vaccination campaign. Although expected to grow by 3.7% this year (IMF estimate), SSA’s economic growth should be the lowest of all regions, in contrast to previous years when countries south of the Sahara had the strongest growth in the world.
Africa
The United Nations Economic Commission for Africa (ECA) in partnership with the African Union Commission (AUC), the African Development Bank (AfDB) and the United Nations Conference on Trade and Development (UNCTAD) will hold a virtual launch of three publications on December 7 and 8, 2021 on the sidelines of the 2nd Session of the Committee on Private Sector Development, Regional Integration, Trade, Infrastructure, Industry and Technology. The first two publications - the 10th edition of the biennial Report on “Assessing Regional Integration in Africa,” dubbed ARIA X and the non-recurrent report titled “Governing the interface between the African Continental Free Trade Area (AfCFTA) and Regional Economic Communities (RECs)” will be launched on December 7. The third report, entitled “Towards a Common Investment Area in the African Continental Free Trade Area: Leveling the Playing Field for Intra-African Investment” will be launched on December 8.
Presentation of the Economic Development in Africa Report 2021 (UNCTAD)
The launch of the African Continental Free Trade Area presents a unique opportunity to promote inclusive growth and accelerate the achievement of the post-pandemic recovery, the 2030 Agenda for Sustainable Development and Agenda 2063 of the African Union. The latest edition of the Economic Development in Africa Report 2021, entitled “Reaping the Potential Benefits of the African Continental Free Trade Area for Inclusive Growth”, aims to equip African governments and development partners with knowledge on how the AfCFTA can be beneficial for inclusive growth and help realize Africa’s untapped export potential.
10 hurdles to Africa’s COVID-19 recovery: Mo Ibrahim Foundation report (Devex)
Efforts to recover from the COVID-19 pandemic across the African continent, have been met by formidable hurdles. The Mo Ibrahim Foundation report, released Monday, examines these challenges through the lens of governance performance in 54 African nations between 2010 through 2019, marking gains and losses during that time frame.
“To be frank, the potential is there, but so are the hurdles and the challenges,” said Nathalie Delapalme, executive director of the foundation, during a press briefing. Below are the foundation’s top 10 takeaways:
The EAC Secretary General Hon. (Dr.) Peter Mathuki said Micro, Small and Medium Enterprises (MSMEs) play a crucial role in the economic development of East African countries, accounting for 90% of businesses and 80% of employment especially among youth and women. Speaking during the official opening of the 21stMSMEs Trade Fair at Rock City Grounds, Mwanza, United Republic of Tanzania, Dr. Mathuki reiterated that EAC Partner States still have a critical role in enabling MSMEs growth to ensure long term sustainability and recovery by promoting programs that prioritise MSMEs to spur demand for quality finished goods and progressively improve the region’s competitiveness.
EAC economies grew the fastest in Africa last year (The East African)
East African economies remained resilient, growing by 2.3 percent and keeping the region on its trajectory as the fastest-growing in Africa in 2020, says a report by Ernst & Young. The report, “Reset for Growth: Fast Forward EY Attractiveness Report Africa November 2021” indicates that across the continent, East Africa was most robust, with Tanzania and Ethiopia growing the fastest in 2020. Southern Africa was affected negatively, with South Africa registering the highest number of Covid-19 cases in 2020, pushing the economy into deep recession. In the latest outlook, although gross domestic product growth in Ethiopia and Tanzania slowed in 2020, it remained in positive territory while the general East Africa GDP is expected to pick up in 2021.
Kenya’s growth is expected to rebound to five percent, supported by its Economic Recovery Strategy and a strong recovery in the services sector. The country is also eyeing a free trade deal with the US.
Rising shipping charges a concern in East Africa (The Citizen)
Business captains in the East African Community (EAC) region say they are concerned by escalating maritime transport costs. They said while intra-regional trade has kept on rising, businesses continue to encounter high transaction costs related to shipping and allied logistics. This emerged here yesterday during the signing of a Memorandum of Understanding (MoU) between the East African Business Council (EABC) and Inter-Governmental Standing Committee on Shipping (ISCOS)The agreement is intended to ease and reduce high transaction costs related to maritime, shipping, transport and trade logistics in the EAC in the EAC bloc.
COMESA: Building resilient economies (Ahram Online)
Egypt’s President Abdel-Fattah Al-Sisi assumed the chairmanship of the Common Market for Eastern and Southern Africa (COMESA) Heads of State and Authority on 23 November at the 21st Summit of the COMESA Authority, the organisation’s supreme policy-making body. In his address to the summit, Al-Sisi called for concerted regional efforts to deepen integration in Africa
Cross-border trade was severely impacted by the Covid-19 pandemic due to the closure of borders, curfews, and delays caused by additional measures including testing and quarantines. Supply chains and education and training were disrupted. Exports, imports, business services, transport and tourism were also affected. Member states that heavily rely on the service sector like Comoros, the Seychelles, Mauritius, Kenya, Ethiopia, Egypt and Madagascar were the most affected. Health services were stretched. On the positive side, financial services were less affected due to the digitisation that has taken place.
COMESA is strongly advocating the manufacture of vaccines in our region due to the difficulties that our countries and the continent at large have been facing in accessing vaccines. Already member states such as Egypt have taken the lead in this direction, and we are looking forward to more countries starting to manufacture vaccines.
President Al-Sisi has emphasised the importance of having products labelled “Made in COMESA”.
This initiative is critical in promoting authentic African products by supporting their origination in COMESA countries. The challenges may include ensuring the protection of intellectual property, and countries should establish instruments that protect the intellectual property of authentic African products and innovations. There is also the challenge of changing mindsets from their affinity with imported products from the developed countries. Another challenge is how fast countries will buy into the idea and put in place policies to promote locally produced products. Egypt together with the COMESA Business Council (CBC) could champion the adoption of a “Made in COMESA” label at the COMESA Council of Ministers meeting in 2022. The CBC is the recognised voice of the private sector in the region, bringing together a diverse group of businesses within a common platform to influence the regional business agenda.
WTI, COMESA Initiative to Strengthen Capacities in Trade Negotiations (COMESA)
The World Trade Institute and COMESA are conducting a training course for COMESA Member States aimed at strengthening human and policy-making capacities on Trade in Services. The course takes place virtually from 6 – 8 December 2021.
Director of Trade and Customs in COMESA, Dr Christopher Onyango described the training as critical for COMESA trade liberalization programme. “Whereas significant progress has been made in liberalizing trade in goods in COMESA, the same is not the case as regards the services sectors despite existence of a framework for trade in services,” he said when addressing participants at the opening of the training, Monday.
Currently, all COMESA Member States are involved in negotiations on seven Trade in Services sector that have been prioritized for liberalization namely: communication, finance, tourism, transport, business, construction and energy-related services.
AIO Announces Incorporation of Regional Insurance Sector into AFCFTA (ThisDay)
The President, African Insurance Organisation (AIO), Mr Tope Smart, has announced the official incorporation of insurance sector integration into the African Continental Free Trade Area (AFCFTA). Smart, who is also Managing Director, NEM Insurance plc, announced this at the recent 25th African Reinsurance Forum held in Kigali, Rwanda.
In his explanation on the decision of the regional insurance body in this direction, Smart said: “After deep reflection, the AIO Secretariat thought it wise that we incorporate insurance integration into this agreement. This is why during this 25th African Reinsurance Forum, discussions will centre around the theme Insurance Integration In The Context Of The African Continental Free Trade Area.
Roadmap for Africa airlines’ revival from corona storms (Business Daily)
Africa’s transport sector has always faced a myriad of challenges, with aviation particularly confronting headwinds from all corners. A number of airlines such as Kenya Airways were already finding it hard to negotiate stormy skies and dark financial clouds even before the pandemic struck. The sudden arrival of coronavirus almost became the last nail in the coffin of some airlines.
Speaking during the 53rd African Airlines Association (AFRAA) Annual General Assembly in Luanda, Angola under the theme Flightpath to Africa’s resilient travel ecosystem, air transport leaders asked for more commitment to get the continent’s air industry back to profitability. Abdérahmane Berthé, AFRAA’s Secretary-General, stated that business conditions caused by the pandemic provide an opportunity for Africa to rethink its air industry and develop resilient and sustainable solutions.
ECOWAS ministers propose reopening of land borders next month (The Guardian Nigeria)
Sectoral ministers of the Economic Community of West African States (ECOWAS) manning the Interior, Health, Finance, Trade and Transport ministries and other experts have recommended the mutual recognition of Polymerase Chain Reaction (PCR) tests and reopening of land borders from January 1, 2022. They made the recommendations at the end of the virtual meeting of the body held in collaboration with the West African Health Organisation (WAHO) in Abuja.
Beyond the impact on Gross Domestic Product (GDP), the raging COVID-19 pandemic led to disruptions in demands and supplies, as well as investments in key economic sectors. Also, the tertiary services and primary (agriculture) sectors experienced a considerable decline on account of
N18bn ISWAP Funding: NFIU Says ECOWAS Report Outdated (ThisDay)
The Nigerian Financial Intelligence Unit (NFIU) yesterday disputed the report of the Inter-governmental Action Group on Money Laundering in West Africa (GIABA), which stated that terror group, the Islamic State for West African Province ((ISWAP) moved N18 billion annual revenue through Nigeria’s financial system to fund its terrorism activities. GIABA is a task force set up by the Economic Community of West African States (ECOWAS) and a specialised institution of ECOWAS responsible for strengthening the capacity of member states towards the prevention and control of money laundering and terrorist financing in the region. A statement by NFIU said the report alleging that N18 billion ISWAP Funds was laundered through Nigeria’s formal financial system was untrue.
2021 AEC: Reforms, debt initiatives come under the spotlight as Africa enters ‘critical’ phase (AfDB)
Participants at the 2021 African Economic Conference have urged countries to implement crucial governance and economic reforms to see the continent through a historic crisis brought on by the Covid-19 pandemic. The conference brought together leading thinkers, development specialists and policymakers virtually and in Sal, Carbo Verde, to present their latest research on the challenges facing the continent, including mounting debt and an unrelenting health crisis. “The next few years are critical for our continent…The richness that Africa has and the capacity it has doesn’t deserve to have people living in such poverty. We need to make the right decisions to fight extreme poverty,” said Cabo Verde Deputy Prime Minister, Olavo Correia, at the closing ceremony of the three-day hybrid event on Saturday.
Food Inflation in Sub-Saharan Africa (IMFBlog)
Inflation is rising around the world. In sub-Saharan Africa, one item is driving the trend more than others: food prices. Food accounts for roughly 40 percent of the region’s consumption basket—a measure of goods and services used to measure consumer price index (CPI) inflation.
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.
On a global scale, the recent increase in food inflation is attributed to rising oil prices (which raise fertilizer prices and transportation costs), droughts and export restrictions imposed by some major food exporters, and stockpiling in some countries. In addition, pandemic containment measures disrupted production and imports of seeds and fertilizers and caused labor shortages during planting seasons. Importantly, there is diversity across the region—food inflation in Chad is near zero but around 30 percent in Angola. This suggests that domestic factors such as weather and exchange rates are important contributors to food inflation in sub-Saharan African countries.
Workshop to Validate the Report on “Strengthening Migration Governance in Lesotho” (African Union)
As Africa seeks to facilitate safe, orderly and dignified migration on the continent, it has to contend with a myriad of the opportunities and challenges that migration presents in an increasingly dynamic environment; more so given the fact that the bulk of migration in Africa is intra-continental. The AU Commission is cognizant that the ability of AU Member States and Regional Economic Communities (RECs) to capitalize on the opportunities that migration presents, and mitigate its negative impacts; and their ability to manage all aspects of migration and to engage with other continents that are destinations for African migrants, pre-supposes the presence of robust migration governance systems: the legal and policy frameworks and institutional arrangements for managing migration in a coherent manner.
Against this backdrop, a Workshop on Strengthening the Migration Governance in Lesotho kicked off on 7 December 2021 in Maseru, the Kingdom of Lesotho. The purpose of the workshop is to review and validate the “Strengthening Migration Governance in Lesotho” report, and to familiarize the migration stakeholders in Lesotho on the work of the newly established migration centres: the African Migration Observatory, the African Centre for the Study and Research on Migration, and the Continental Operational Centre in Sudan.
International
Rethinking multilateralism for a pandemic era (IMF Finance & Development)
We are nowhere near the end of the pandemic. Delta will not be the last highly transmissible variant. Large unvaccinated groups and the unchecked spread of the virus around the world raise the prospect of further mutations, possibly evading today’s vaccines, that will create new waves everywhere.
Crucial too is building the global capacity needed to radically speed up supplies of vaccines and other vital materials to avoid prolonging a pandemic and repeating the staggering inequalities of access that COVID-19 has revealed. We need a globally distributed development, manufacturing, and delivery ecosystem that is kept in use in normal times and can pivot swiftly to provide the medical countermeasures specific to each pandemic.
In the absence of a larger global supply capacity ready early in a pandemic, producing nations will remain prone to prioritize the needs of their own populations over global needs. The private sector currently has little incentive to invest in this ever-warm supply capacity on the scale required ahead of a pandemic, even if there is scope for dual uses to meet ongoing needs in normal times.
However, to succeed in averting the next pandemic, we must strengthen multilateralism. That cannot be achieved with incremental changes to existing mechanisms, which have failed to prevent and respond decisively to the current pandemic. We need major renovation and replenishment of both individual institutions and the global health architecture. The G20 panel has advocated three strategic shifts to enable proper and proactive financing of global health security.
5 ways trade can support a gender equal recovery (WEF)
Ahead of the now postponed 12th Ministerial Conference of the World Trade Organization (WTO), member countries are considering how to advance the still incomplete agenda on gender and trade. The evidence is increasingly clear that while the international trade architecture itself is embedded with the principle of non-discrimination, the benefits of trade are not equally distributed across gender lines. WTO negotiators should take concrete steps to ensure trade policies positively impact women – as consumers, entrepreneurs, producers, suppliers and workers. We believe there are five reasons why the time to act on gender and trade is now.
DDG Ellard stresses need to maintain WTO momentum, importance of dispute settlement reform (WTO)
DDG Ellard stressed WTO members’ collective wish to maintain momentum despite the postponement. In particular, there are two key issues that still need to be addressed for which momentum must be maintained – the WTO’s response to the pandemic and fisheries subsidies, she said.
When asked about the relationship between multilateral and plurilateral initiatives, as well as regional trade agreements, DDG Ellard noted that they coexist and complement each other. “The future is not plurilateral or multilateral; it belongs to the agreements of variable geometries,” she said. At the same time, issues of the global commons, such as fisheries subsidies or developing a single instrument regulating carbon pricing, can effectively be addressed only on a multilateral basis.
Small Businesses Adapting to Rapidly Changing Economic Landscape, Study Finds (WEF)
The World Economic Forum has long been at the forefront of recognizing the strategic importance of sustainable value creation objectives for business. While interest has mostly focused on how large corporations contribute to the global economy and sustainable development objectives, small and mid-sized enterprises (SMEs) are often overlooked as major drivers of economic activity, as well as social and environmental progress around the world. A new report released today finds factors that previously disadvantaged SMEs can lead them to new opportunities. Nine case studies from multiple industries and regions highlight what SMEs can do to increase their future readiness.
The impact of the COVID-19 pandemic on tax revenues was less pronounced than during previous crises, in part due to government support measures introduced to support households and businesses, according to new OECD research published today. The 2021 edition of the OECD’s annual Revenue Statistics publication shows that the OECD average tax-to-GDP ratio has risen slightly to 33.5% in 2020, an increase of 0.1 percentage points since 2019. Although nominal tax revenues fell in most OECD countries, the falls in countries’ GDP were often greater, resulting in a small increase in the average tax-to-GDP ratio. This year’s edition includes the first comparable analysis on the initial tax revenue impacts of COVID-19 across OECD countries, which suggests that government support measures contributed to the relative stability of tax revenues by protecting employment and reducing corporate bankruptcies to a considerably greater extent than in the global financial crisis in 2008-2009.
Boost incentives to grow agro-industrial parks – report (SciDev)
Agro-industrial parks could offer a solution to severe global food supply chain challenges, such as the disruptions caused by COVID-19 lockdowns, new analysis suggests.
Agro-industrial parks are dedicated business areas that focus on processing farm produce, and on farming inputs such as fertilisers, according to the new study released by the Commercial Agriculture for Smallholders and Agribusiness (CASA) programme.
Mathias Hague, research lead at CASA, says that agro-industrial parks can be highly effective in bringing together, within a single area, smaller individual food processing and farm-related enterprises and offering them access to common facilities and services, such as refrigeration and storage.
China delivers stellar trade performance as global clout grows after 20 years in WTO (Global Times)
China turned in an impressive transcript of foreign trade records on Tuesday, with its exports and imports for the first 11 months already outnumbering the 2020 full-year reading, speaking indisputably to the country’s rising trade clout globally only days before the 20th anniversary of its WTO entry. Growth in both exports and imports for November beat market estimates, official data showed, as China’s trade prowess held up in the face of a continuation of pandemic uncertainty, experts said, expecting the country to extend its trade strength into the next year, thereby paving the way for the economy to hold steady throughout 2022. With China’s trade resilience powering up the global economic recovery amid the pandemic, observers hope its share of global trade will continue its upward trajectory, cementing its role as a vital stabilizer in the world trade landscape.
BRICS 20 years on: A success or failure? (TRT World)
Two decades ago, the investment bank Goldman Sachs came up with an acronym that was supposed to represent the shifting economic balance of power – BRICs (Brazil, Russia, India and China) – that would come to dominate the global economy and usher in a new era of multilateralism and global governance. These large markets had not yet realised their full potential and were soon-to-be hotbeds for international investment.
There was reason to be optimistic: collectively the bloc represented 45 percent of the world’s population, nearly a quarter of global GDP, their leaders began to hold regular meetings, they started a $100 billion development bank, and invited South Africa to complete the acronym in 2008. But twenty years since, Lord Jim O’Neill, former Chairman of Chatham House who coined the abbreviation, believes they haven’t lived up to expectations – apart from China and to a lesser extent, India.
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Another record export season for SA citrus, but picture not as rosy as it seems (Fin24)
Although the Southern African citrus industry is celebrating another record breaking export season – the third year in a row – global and domestic challenges meant it did not translate into higher returns for local growers this year. In March this year, the Citrus Growers’ Association of Southern Africa (CGA) estimated that all previous export records will be broken with 158.7 million cartons exported this year. Even more – 161.6 million cartons of fruit – ended up being exported in the 2021 season – despite tough circumstances. In 2019, 130 million cartons were exported followed by 146 million cartons in 2020. However, the increased volumes of citrus exports in 2021 did not translate into higher returns and increased foreign revenue for local growers, according to Paul Hardman, acting CEO of the CGA. Last year, CGA – excluding Eswatini and Zimbabwean exports – generated R20 billion in foreign revenue. Figures for the 2021 season are not available yet.
“With the local industry expected to export 200 million cartons of fruit within the next five years, it is critical that challenges experienced during this season are resolved ahead of 2022,” Hardman said in a statement on Tuesday.
President Cyril Ramaphosa eyes stronger trade agreements with West Africa tour (Eyewitness News)
Following what President Cyril Ramaphosa has described as successful visits to Nigeria and the Ivory Coast, the South African government and business community will have an audience with its Ghanaian counterparts on Saturday. Ramaphosa and the sizeable delegation accompanying him on the four-country West Africa tour landed in Accra on Friday night. He will use the visit to enhance bilateral relations based on good governance and rules-based multilateralism.
South Africa has been the West African state’s number one foreign direct investor for years now while by 2019, Ghana had exported $1.7 billion worth of products to South Africa including gold, crude oil and cocoa paste.
Economy Concentration Tracker report to be unveiled (SAnews)
The Competition Commission of South Africa will on Tuesday unveil and handover its first ever Economy Concentration Tracker report to the Minister of Trade, Industry and Competition Ebrahim Patel.
Themed: Measuring Concentration and Participation in the South African Economy: Levels and Trends, the report details the levels of concentration and participation in 178 markets and how these have been evolving over the past 5-10 years. The study makes use of data collected by over 80 industry organisations, regulators and government departments as well as data from SARS, Stats SA and the Commission itself. The economic sectors highlighted in the report include but are not limited to agriculture, retail, forestry, health care services, financial services sector, media, energy, property, gambling, construction, automotive and airline industry.
Minister urges exporters to seize AfCFTA opportunities (The Herald)
Industry and Commerce Minister Dr Sekai Nzenza has called on businesses to invest towards enhancing exports into the regional markets to take advantage of the opportunities presented by the African Continental Free Trade Area (AfCFTA). Founded in 2018, the AfCFTA was implemented effective 1 January 2021, becoming the largest free trade area in the world in terms of the number of participating countries since the formation of the World Trade Organization (WTO).
Dr Nzenza said local industry could transform the economy by working together towards exploiting opportunities presented by the US$3,4 trillion market presented by the AfCFTA. “We can make Zimbabwe great,” she said in a presentation made on her behalf by her ministry’s director of commerce and consumer affairs Constance Zhanje during the second edition of the business dinner and awards ceremony by Global Renaissance Investments (GRI). The awards dinner was held last week in the capital.
Manufacturing exports rise fastest on sector’s recovery (Business Daily)
Manufacturing goods recorded the fastest growth among Kenya’s major exports in the 10 months to October, signalling the return to health for the sector, which was badly affected by the curfew restrictions and low demand during the peak of the Covid pandemic.
Data from the Central Bank of Kenya (CBK) shows that these exports rose by 35 percent in the period to hit Sh46.97 billion, outpacing on relative terms the growth in raw materials and horticulture exports which went up by 24.6 percent and 23.8 percent to Sh41.1 billion and Sh108.8 billion respectively. The manufacturing sector has recorded an improvement in both sales turnover and demand for credit, indicating that firms are fielding more orders and producing at a higher capacity compared to last year. Their productivity was hurt last year on reduced demand for goods as consumers exercised caution in spending due to pandemic-fuelled uncertainty. The bulk of Kenya’s manufactured goods exports are made to neighbouring countries with Uganda the biggest destination of Kenya’s exports.
President Samia dissolves Tanzania Ports Authority, Shipping Corporation boards (The East African)
President Samia Suluhu Hassan has dissolved the Tanzania Ports Authority (TPA) board and the Shipping Corporation by removing its chairmen after dissatisfaction with their performance. President Samia announced the decision on Saturday, December 4 at the launch of pier number 0 to 7 at the port of Dar es Salaam. Prior to the announcement, President Samia described some of the shortcomings facing the authority, some of which were in the Auditor General’s (CAG) report questioning why no action has been taken to date. She also called on PCCB to investigate the boards for what was going on at the port and to take action against those responsible for the financial losses mentioned in the report.
Uganda, Tanzania currencies ranked top as Kenya shilling, Rwanda franc lose value (The East African)
Uganda and Tanzania currencies are the best performing media of exchange in East Africa against the dollar, whereas Kenyan and Rwandan currencies continue to lose value against the greenback. According to Bloomberg Refinitiv data, the Uganda shilling continues to hold steady against the dollar followed by the Tanzanian currency at 2.45 percent and 0.76 percent, respectively. They are among six African currencies with a positive outlook with the kwacha remaining best performing by end of November, appreciating at 19.64 percent followed by Mozambique’s metical and Angola’s kwanza at second and third respectively.
Currency policy in most of Africa is characterised as flexible without pegging the currency rate against the dollar.
Uganda is Africa’s biggest coffee exporter and shipments climbed to a record level in June on better yield from new trees, favourable weather and improved prices, according to the Uganda Coffee Development Authority. The pandemic has hurt economic output from the net importer but the country remains optimistic the dollar will continue to appreciate post-Covid.
Investing in Gender Equality in Uganda is Smart Economics (World Bank)
Uganda’s economic recovery will be faster, stronger, and more sustainable if it brings more women into the center of profitable economic activity, according to the 18th edition of the Uganda Economic Update (UEU).Uganda Economic Update: Putting Women at the Center of Uganda’s Economic Revival, which projects the country’s economic growth to be between 3.5% and 4.0% in FY22 and about 5.5% in FY23, also delves into a special topic on women’s economic empowerment, with an emphasis on putting women at the center of Uganda’s economic revival.
The COVID-19 pandemic expanded gender gaps in paid work and business ownership, and the 2020 lockdown set off a wave of work stoppages and business closures that affected women more than men, while job losses and school closures have resulted in a greater share of unpaid care work for women, who already shoulder a disproportionate amount of household responsibilities.
Uganda launches road-building in Congo to boost trade (Reuters)
Uganda said on Sunday it had launched a road-building project in neighbouring Democratic Republic of Congo aimed at boosting trade between the two countries. Sites for the roads were handed over to the contractor, Dott Services Limited, a Ugandan construction firm, the government said in a statement on Sunday. It added that the roads “will open the Eastern part of the country (DRC) to cross border trade with Uganda”. The statement did not give a cost for the 223 km (138 miles) of roads, which will connect Uganda to the eastern Congo cities of Beni, Goma and Butembo. Uganda had announced the plans to build roads in Congo in 2019.
AGOA Rests On Ethiopian Life Support – As Retailers Flee And China Rushes In (Forbes)
The United States announced a plan to remove Ethiopia from the African Growth and Opportunity Act (AGOA) by the first day of January – and shock waves quickly rolled through the U.S. apparel and footwear industries – like a tsunami that no one expected. Manufacturers were alerted that perhaps their good-will African investments – were made in vain, and retailers started to think about pulling out of Ethiopia.
Under stark review, the concept of exiting the Ethiopian AGOA partnership is possibly a huge mistake – one that probably should (and could) be reversed, resolved, extended, or at least peppered with exemptions. America encouraged the apparel and footwear industries to make investments in Ethiopia, and now is potentially leaving “the ask.” Plus, all things considered, an abrupt exit (with only two months’ notice) has frightened other sub-Saharan African investors. They worry that the United States won’t renew AGOA in 2025, and won’t have their back the next time that trouble breaks out.
When looking at the results of AGOA, it is more important to focus on the non-energy sector – because that creates the most jobs and helps the most people on a humanitarian level – especially with apparel manufacturing in Kenya, Ghana, Lesotho, Madagascar, Mauritius, and (of course) Ethiopia.
We are working out incentives for SDG-focused investors – GIPC (GhanaWeb)
The Ghana Investment Promotion Centre (GIPC) is initiating legal reforms to guarantee incentives for investors with interests in helping Ghana achieve the Sustainable Development Goals (SDGs). The incentives, tariff and non-tariff, will speed up the process of achieving the SDGs, which are linked to the country’s budget. “Ghana strongly endorses the SDGs and we are the first country in the world to benchmark our SDGs in the budget,” Mr Yofi Grant, the Chief Executive Officer (CEO) of GIPC, said at the Ghana – South Africa Business Forum in Accra on Sunday. He said the reform, when endorsed, would also strengthen partnership between GIPC and local investors where all Foreign Direct Investment (FDI) would have Ghanaian investors implanted in the supply and value chains. “I hope this would bring stronger partnerships, stronger trade interventions, and we would grow together,” he said.
Stakeholders brainstorm on AfCFTA potential for enterprises (Daily Sun)
The National Association of Small and Medium Enterprises (NASME) says efforts are in place to ensure a hitch-free 18th Micro Small and Medium Enterprises summit and exhibition scheduled for Thursday and Friday in Abuja. A statement issued on Sunday in Abuja by the Executive Secretary of NASME, Mr Eke Ubiji, said that the event would provide an avenue for industry experts to discuss a regulatory framework for full participation in the African Continental Free Trade Agreement (AfCFTA). The theme of the summit is “Positioning MSMEs for African Continental Free Trade Agreement Opportunities”.
Nigeria Remains Most Viable, Attractive Investment Destination In Africa, Buhari Declares (Channels Television)
President Muhammadu Buhari Saturday in Dubai declared that Nigeria remains the most viable and attractive investment destination in Africa, adding that the country is on the path of becoming the continent’s leading industrial and trading nation. Addressing a trade and investment forum at Dubai Expo 2020, organised by the Nigerian Arabian Gulf Chamber of Commerce, Nigeria’s Ministry of Industry, Trade and Investment, and the Nigerian Investment Promotion Commission (NIPC), the President said Nigeria is reaping from the efforts his administration has made to consciously improve the investment environment.
‘‘Nigeria’s pavilion at the Expo 2020 clearly shows why we remain the most viable and attractive investment destination in Africa. Our location, our natural resources, our population, and our regulations are there for all to see. Nigeria is on its way to become a leading industrial and trading nation in Africa,” special media aide, Femi Adesina quoted Buhari as saying.
Notable Rise in Non-oil Exports, Records 12% Growth MoM in July 2021 (Proshare Nigeria)
The latest monthly economic report from the CBN puts the provisional value of non-oil exports at USD0.46bn for July '21, indicating a growth of 12% m/m, and almost 43% y/y if we draw from data in the bank's quarterly statistical bulletin (QSB). The report does not provide a detailed breakdown of non-oil exports by product segment. However, it revealed that non-oil exports excluding electricity grew 13% m/m. While the surge in the y/y growth is clearly explained by the plunge in non-oil exports in 2020 due to the pandemic, the m/m growth was attributed to a marked rise in the export of agricultural products, particularly sesame seeds.
Despite Nigeria's vast export potential for agricultural commodities, non-oil exports still account for a small percentage of total export value. They accounted for just c.10% of overall exports in July. Based on the CBN's QSB which goes as far back as FY '08, we see that the share of non-exports to total peaked at c.16.1% (c.USD10.5bn) in FY '19.
Over the years, the federal government (FG) has implemented several initiatives targeted at increasing non-oil exports, including the export expansion grant, which reimburses exporters between 5% and 15% of their export value.
Africa
AfCFTA poised to stimulate Africa’s socio-economic recovery from the pandemic (UNECA)
The African Continental Free Trade Agreement (AfCFTA) offers a major opportunity for African countries to cushion the economic impacts of the COVID-19 pandemic and is a vehicle for continued recovery to boost growth, reduce poverty, and broaden economic inclusion. This observation was made during a high-level panel discussion at the 2021 African Economic Conference, currently being held in a hybrid format, with key delegates gathering on the Cabo Verde island of Sal, as well as virtually. The panel discussion, moderated by Mr. Stephen Karingi, Director of the Regional Integration and Trade Division of ECA, focused on the implementation of AfCFTA to support countries in pushing back headwinds of a pandemic-induced recession. “The African Continental Free Trade Area (AfCFTA) is a stimulus for Africa’s socio-economic recovery from the COVID-19 crisis, and a driver of sustainable development particularly for women and youth in Africa,” said Ms. Joy Kategekwa, Strategic Advisor to the Assistant Administrator and Regional Director of the United Nations Development Programme (UNDP).
She underlined that the path to more robust and resilient African economies will be a challenging one, calling for boldness, imagination, and tenacious implementation of AfCFTA on the part of policymakers to address the lack of financing—including among informal businesses—and to support promising sectors in order to jumpstart and sustain an economic revival.
2021: Africa’s first year of free trading (BusinessAMLive)
NEXT JANUARY, in about a month’s time, the commencement of trading on the platform of African Continental Free Trade Area (AfCFTA) would have run its course for one year. By now, we should be expecting to read big headline news about what has been achieved during the one year of implementing a trade agreement that took off in the middle of a pandemic. Because Africa is not an isolated continent, the impact of the pandemic on the continent could be considered understandable.
Months before its commencement and for a significant part of 2020 – movement of people across national boundaries was severely limited and a lot of meetings had to be done remotely, online. Even with the commencement of trading on the AfCFTA platform, great news are yet to emerge. It is encouraging, however, that all African economies, except Eritrea, are now part of a comprehensive integration process based on trade and investment liberalisation, expected to lead to a customs union. Expectations remain high on the much publicised anticipated benefits on reduction of trade costs, fostering intra-African trade, driving efficiency and competitiveness, improving regional value chains and attracting foreign direct investment (FDI). Official responses to COVID-19 are not helping AfCFTA, at least for now as Africa is taking a hit from the disruptions to global value chains and supply chains. Border closures against many African countries in the past one week have taken a new turn with the identification of OMICRON variant of COVID-19, setting many Western nations on the edge for the time being.
Southern Africa set for economic rebound, but impact of Covid-19 lingers (AfDB)
Southern Africa is set for an economic rebound in 2021 and 2022, provided the Covid-19 pandemic tapers off, according to a report published by the African Development Bank. Like elsewhere on the continent, the pandemic will be a deciding factor in the region’s economic fortunes. If all goes well, and that includes a successful vaccination campaign and health measures such as social distancing and wearing masks, Southern Africa is projected to grow 3.2% in 2021 and 2.4% in 2022, according to the Bank’s Southern Africa Economic Outlook. These projections are a far cry from 2020, when the region suffered a 6.3% contraction – by far the worst in Africa. Central Africa experienced the second-worst regional economic contraction at 2.6%.
Going forward, lack of economic diversity could stifle the recovery. Commodities play an oversized role in many of the region’s economies, the Bank’s analysts point out, citing Angola, Mozambique and Zambia as examples. Dr. Emmanuel Pinto Moreira, Director of the Bank’s Country Economics Department, said the region’s economic performance fit in with the larger picture in Africa and the world as a whole. All but one region on the continent, East Africa, recorded growth in 2020. Overall, Africa experienced one of its worst recessions in decades.
Politicians must keep their hands out of African trade deals, says Ramaphosa (News24)
President Cyril Ramaphosa was honoured with chieftaincy by the governor of the Autonomous District of Abidjan, Robert Beugré Mambé in Côte d’Ivoire on Friday. President Cyril Ramaphosa has said African politicians must “keep their hands” out of intra-Africa investment deals and the private sector must get on with the job. Speaking at a business forum of South African and Ghanaian businesses in Accra on Sunday, Ramaphosa added investment projects should be depoliticised, where governments only played a support role. “Africa must move away from too much political involvement by politicians – where politicians put their fingers in projects … it’s awarding and it’s execution. And I dare say dirty fingers. We need to depoliticise investment.”
AEC: Investment in infrastructure is key to industrialisation of Africa (UNECA)
Development experts at the 2021 African Economic Conference (AEC) say investment in infrastructure is crucial for the industrialisation of Africa. Delivering a paper on ‘Globalisation and Industrial Development in Nigeria’ on Saturday, Olufemi Samuel Omoyele, a development expert, said industrial development in the country was a necessary condition before globalisation could bring fortunes to Nigeria. He said economic globalisation was not good for the country because its economy was so dependent on crude oil revenue, and not very competitive. He added that before the current wave of economic globalisation could be a cure for Nigeria, the country’s government should first implement policies that would drive the largest proportion of foreign direct investment (FDI towards the manufacturing sub-sector.
OFID extends US$80m loan to boost trade in Africa (Emirates News Agency)
The OPEC Fund for International Development (OFID) has signed an US$80 million loan agreement with the African Export-Import Bank (Afreximbank) to finance international trade directly among corporates or through financial intermediaries. The OPEC Fund’s support will assist in boosting Afreximbank’s liquidity to grow its loan portfolio as it finances exports and imports in critical sectors such as agriculture, manufacturing and healthcare. The OPEC Fund’s loan will address trade challenges impacted by the COVID-19 pandemic.
Financial system pivotal to Africa’s huge potential — CBN deputy gov (Nigerian Tribune)
The financial system will be pivotal in the realisation of Africa’s huge potential just like it has in charting the economic recovery path from COVID 19. The Deputy Governor, Financial System Stability, Central Bank of Nigeria, Mrs. Aishah N. Ahmad made this observation in Lagos over the weekend, at the 40th anniversary summit of the Financial Institutions Training Centre (FITC).
Ahmad also said that there is significant room for the continent to leverage the bright spots, particularly the digital transformation and technological innovation being witnessed in the economy and financial ecosystem, to foster more prosperity and reduce income inequality. This innovation, according to her, has intensified growth in the size and significance of banks and other financial institutions, created new opportunities for new entrants and increased integration with global finance and capital markets.
2021 AEC: Experts call for African crypto currency, integrated capital market to ease business costs (AfDB)
A common crypto currency and an integrated capital market could boost trade in Africa and sustain growth after the Covid-19 crisis, experts said at the 2021 African Economic Conference on Friday. But the continent first needs to harmonise national rules and protocols governing the financial systems of individual countries to make the reforms workable, panellists said during a discussion on reforming Africa’s financial system. Anouar Hassoune, Professor of Finance and CEO of the West Africa Rating Agency, believes that 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.
Sovereign wealth funds are gaining ground in Africa, although urgent financial reforms are needed to boost foreign investment following the Covid-19 pandemic. This is according to economic experts speaking during the second day of the 2021 African Economic Conference in Cabo Verde. Studies presented during one of the sessions on Friday highlighted the progress made in some countries over the past few decades to improve policies. Experts argue that more work is needed to diversify and deepen financial markets so as to expand beyond commercial banks. Munashe Matambo, Associate Research Scientist at the Zimbabwe-based Scientific and Industrial Research and Development Centre, said there are at least 117 sovereign wealth funds currently operating or in the pipeline around the world, managing $9.1 trillion – 10% of global GDP.
Matambo said currently 24 African countries have established or are considering establishing sovereign wealth funds, but the process is not advanced.
Assessing the potential of Offshore Renewable Energy in Africa (AfDB)
How can the ocean contribute renewable energy to the African ‘Blue Economy’, bringing opportunities to millions of Africans and reducing or replacing carbon emissions, and which strategic actions can help it reach this potential? This background paper is an overview of offshore renewable energy sources across coastal Africa, including a review of six technology types: wave power, tidal stream power, ocean current power, ocean thermal energy conversion (OTEC), offshore wind power, and marine floating solar power (FPV). Analyses are based on a synthesis of available data and literature, including a review of their physical, technical, and socio-economic features.
Africa must push for measurable climate targets based on African development needs (African Business)
The broad net zero emissions targets agreed at Cop26 are too amorphous. African negotiators need to push for more measurable targets based on ambitious African development scenarios. In particular, the issue is what this severe lack of progress means for African countries. Yes, there were other emissions-related agreements made in Glasgow – new net zero commitments in particular from India and a few others, a brand-new commitment to phase out coal, to list a few.
There are models. These include changes such as a complete shift out of diesel and petroleum in the global transport sector, to the use of green hydrogen by all steel and cement plants, to complete closure of all coal-fired power stations, and more. These are measurable, trackable, and possible to call out in global negotiations and domestic elections if not achieved. That is much harder for a broad emissions reductions target.
The problem is that – for Africans – trying isn’t good enough. It’s not just about impacts and adaptation costs at higher warming levels, nor about allowing African countries to continue to use oil and gas for a while
What stops Africa from exporting more crops to China? (South China Morning Post)
Half a world away in the Senegalese capital of Dakar, attendees at the Forum on China-Africa Cooperation were hearing Chinese President Xi Jinping’s plans to grow the value of imports from Africa to US$300 billion in the next three years. Xi said China would open “green lanes” for African agricultural exports just like those from Rwanda, to China. Further, China would offer US$10 billion in trade finance to support African exports and build a China-Africa industrial park for cooperation on the Belt and Road Initiative.
Observers said the announcement was timely since, in the past few years, African countries had been urging China to make it easier for African products to access the massive Chinese market. But realising the ambition would not be easy, with many trade and capacity challenges to be overcome.
International
World transporters reject travel bans over Omicron variant (The East African)
Global land, sea and air transport lobbies are laying into world leaders for imposing travel bans in the wake of a new Covid-19 variant in what could boost Africa’s argument against restrictions. The transporters who include shipping operators, air freighters and cross border hauliers say the “knee-jerk” reactions to the Omicron variant could risk killing an already ailing global supply chain. In a joint statement on Friday, the International Air Transport Association which represents commercial airliners, ICS which is the International Chamber of Shipping and the International Road Transport Union, and ITF, the International Transport Workers’ Federation, said they reject fresh travel restrictions including those that limit the flow of people and good because they “will do nothing to prevent this while inflicting serious harm to still recovering global supply chains and local economies.” Representing about $20 trillion of world trade share, these groups caution travel bans are putting the jobs of workers in the logistics sector at risk, while also damaging local economies.
WTO faces renewed scrutiny amid omicron threat (TheHill)
Pressure is mounting on World Trade Organization (WTO) members to make a deal on an intellectual property waiver for the COVID-19 vaccines after it postponed its Ministerial Conference due to the emergence of the omicron variant.
India, South Africa and other countries have been pressing for the waiver, which wealthier countries have not embraced. The Biden administration publicly supports the waiver, which would allow more countries to manufacture vaccines without securing the intellectual property rights. Advocates say the administration has not put muscle behind its backing.
The delay of the conference, where members were slated to consider a proposed waiver suspension, has sparked concerns that the wait could further hinder the global vaccination effort and widen the vaccine gap between wealthy and poor countries.
IMF’s chief economist warns that variants could derail global economic recovery (Fin24)
The International Monetary Fund sees “downside risks” to the global economic rebound it forecast for this year and next, and is concerned that new coronavirus variants may hinder the recovery, its chief economist said. The International Monetary Fund sees “downside risks” to the global economic rebound it forecast for this year and next, and is concerned that new coronavirus variants may hinder the recovery, its chief economist said. ”Most of the overall risks are to the downside,” Gita Gopinath said in a virtual speech to an International Finance Forum conference in Guangzhou on Saturday. Gopinath, who is set to take over as the IMF’s No. 2 official in January, said the omicron strain may increase risks to the outlook and the world could also see more aggressive variants that further damage the recovery.
Digital technologies carry a promise to fast track sustainable development by supporting innovative, forwarding-looking policies and digital government solutions. There are, however, numerous risks and complexities of frontier technologies that come along with those opportunities, as well as policy and regulatory challenges such as those related to inclusion, competition, privacy and security. Innovation hubs, incubators, accelerators or testbeds have since emerged as springboards for new technologies and are now common in many developed and developing countries. In some scenarios, however, the perceived risks and costs of failure in public sector innovation mean that policymakers and regulators may still prefer to stick to the status quo.
The tech revolution that will change food production (United Nations)
Genetically modified crops and biotechnology have substantially benefitted farmers in recent decades, however, the next agricultural revolution will be driven by the accelerated application of smart, digital and precision agricultural technologies. The use of such technologies helps address the information asymmetries and deficiencies facing farmers, particularly smallholders. This can improve agricultural productivity and reduce costs, while mitigating the environmental impact of farming activities. The latest UN DESA Frontier Technology Issues paper studies a select set of technologies with potential for creating high economic value for smallholder farmers in developing countries.
The benefits offered by smart, digital and precision technologies are significant, but their uptake by smallholder farmers in rural areas of developing countries has generally been limited. To accelerate the adoption of these technologies, UN DESA calls for greater investment in promoting digital literacy in rural areas; a rethinking of the current model of agricultural extension services; a renewed effort to make digital platforms more user-friendly for smallholder farmers; and significant expansion of rural infrastructure to promote agricultural e-commerce.
From the Field: ‘climate-smart’ development in an uncertain world (UN News)
Securing the funding needed for sustainable development by involving as many actors from different sectors as possible, is more urgent than ever, amid a widening “trust deficit” between the haves and the have-nots, the UN Deputy Secretary-General said on Monday.
How is tax driving the green agenda? (Business Daily)
The UN COP26 Summit 2021 was recently concluded in Glasgow, Scotland, as climate change becomes a key agenda worldwide. The conference was an opportunity for governments to track how they have responded to multiple challenges presented by the climate emergency efforts with two areas of focus, including reducing carbon emissions and changing the use of resources. Kenya and other East African Community states have over the years adopted tax policy initiatives to control the use of certain products with an effect on the environment. These taxes have ranged from excise duties or environmental taxes to income taxes on corporates. It is anticipated that prioritising tax-related environmental measures will be a great lever for change in the consumption or use of certain products. Some initiatives and policy measures the Kenyan government has put in place concerning green tax fall into several thematic areas.
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National
South Africa is failing to ride the digital revolution wave. What it needs to do (The Conversation Africa)
Workplaces are adopting new forms of advanced automation at a rate that suggests a digital revolution in the making. Digital technologies such as sensorisation, networked data analytics, and artificial intelligence make it possible to collect data along the entire chain of production and consumption activities. They also enable the data to be used for a host of other purposes. These include shaping markets and industries, offering benefits like reducing production costs and time to market, and increasing product and service quality. But it is a revolution that is playing out unevenly, across and within countries. This has consequences for the competitiveness, inclusiveness and sustainability of economies.
The UK’s demand for South African apples and pears is growing, with exports rising 9% in 2021 (Business Insider)
Despite the disruptions brought on by Brexit and the pandemic, the UK imported more South African grown pears and apples this year, according to data from Hortgro, South Africa’s deciduous fruit grower organisation. The UK’s official exit out of the European Union at the start of the year has led to a plunge in exports and imports, leading to price spikes for some critical commodities. The world also continues to grapple with logistical challenges brought on by the pandemic-led global supply constraints. Overall, South African apple and pear exports rose 9% in 2021, with 33 million cartons of apples and 15.5 million cartons of pears shipped across the globe. But with 6.1 million apples exported to the UK this year it was the third-largest single export destination for apples from South Africa. Apples shipped to the UK accounted for 19% of South Africa’s total exports.
Minerals Council, SAAFF outline requirements to get Lebombo/Ressano Garcia border congestion resolved (Mining Weekly)
With delays at the Lebombo/Ressano Garcia border post on the Maputo corridor between South Africa and Mozambique having cost trucking companies R1.3-billion in lost revenue this year, the South African Association of Freight Forwarders (SAAFF) and the Minerals Council South Africa have requested the South African government to take urgent steps to address severe congestion at the border post. The SAAFF and the Minerals Council report that truck transporters confirm that border crossing times are the worst they have experienced in 15 years.
Trucking companies have experienced long delays in border crossing times, with waits of more than three days in recent weeks, exacerbating a crisis that has been ongoing since the beginning of August. The greatest challenge at the border crossing is the lack of 24-hour customs operations, resulting in crossing times having increased from an average of one hour to more than 20 hours since 2019. Further, Covid-19 restrictions are exacerbating the situation, leading to truck drivers’ vaccination certificates expiring while they wait in queues.
“These delays are resulting in loss of confidence, a loss of business and they are threatening the stability and sustainability of trade, transport, employment and job creation in South Africa,” says SAAFF CEO Dr Juanita Maree
Current account widens on higher importation bill (Business Daily)
Kenya’s current account deficit widened to 5.4 percent of GDP in the year to October from 4.8 percent a year earlier on the back of a bigger oil and industrial goods import bill. The year-on-year expansion of the deficit is also attributed to the base effect where last year oil prices had fallen to multi-year lows due to low demand on Covid travel restrictions, while local factory activity had also been curtailed by the Covid prevention restrictions. Ithas however eased slightly on a month-by-month basis, having stood at 5.6 percent in the 12 months to September 2021. The Central Bank of Kenya (CBK) however projects that the current account deficit will close the year at 5.2 percent helped by the global economic recovery which is expected to boost export demand and remittance inflows.
Kenyans living abroad spend Sh2.4bn in remittance costs (Business Daily)
Kenyans living abroad are spending an average of Sh2.4 billion per month in costs when sending money home to their relatives, with those using banks to remit cash, paying more compared to the ones utilising digital channels. The Central Bank of Kenya (CBK) said the cost of remittances to Kenya is averaging about seven percent, which is slightly below the average of eight percent for sub-Saharan Africa but well above the ideal target of three percent. In the 10 months to October 2021, Kenyans living abroad have sent home an average of Sh34.3 billion ($304.7 million) per month, a 20.4 percent jump compared to the Sh28.5 billion remitted in the corresponding period last year. “The issue of cost is a big concern, not just for Kenya but around the world, especially those countries in the emerging markets which are recipients of a large amount of remittances,” said CBK governor Patrick Njoroge on Tuesday.
Wholesale sugar price eases on higher local production (Business Daily)
The wholesale price of sugar for a 50-kilogramme bag has dropped by eight percent, signalling a drop in shelf prices for consumers who have been paying more for the sweetener in the past few weeks. Wholesalers are now selling the sugar at Sh5,700 from Sh6,200 last month, a drop attributed to increased local production due to higher volumes of cane delivery from farms in western Kenya. A spot check by the Business Daily across supermarkets in Nairobi showed that a two-kilogramme packet of Kabras Sugar brand is now retailing at an average of between Sh249-Sh255, while Ndhiwa Sugar is selling at Sh275 from a high of Sh285 last month. “The wholesale prices of sugar has retreated from the high of Sh6,200 last month to Sh5,700 for a 50-kilogramme bag, offering some relief from the sharp increase we had seen at the start of November,” said Benedict Gikunda, chief executive at sugar distributor Alesha Brands Limited.
In August and September, several factories grappled with production hitches following the breakdown of machines and shutdowns for routine maintenance.
Rwanda, DR Congo commit to boost trade through transportation (The New Times)
The Minister of Infrastructure, Ambassador Claver Gatete and his DRC counterpart, Cherubin Okende Senga on Wednesday, December 1 held a bilateral exchange on the development of air, road and railway infrastructure projects. The meeting that aimed at bolstering regional trade services was held on the sidelines of the 33rd plenary session of the African Civil Aviation Commission meeting, currently underway in Kigali. Officials from both sides were assessing the implementation of agreed on projects in the transportation sector that are meant to improve bilateral relations and how they can be accelerated.
“We’ve discussed the railway line project from Tanzania, through Rwanda and then to places like Goma, Masisi, Walikale and Kindu in the eastern part of the Democratic Republic of Congo,” he said, adding that all parties agreed that it is a mutually beneficial project. Gatete added the two neighboring countries have a bilateral air service agreement in the aviation sector, facilitating RwandAir flights to Kinshasa, then to Lubumbashi and finally, Goma, noting that the national carrier will soon launch a flight to Kisangani and other parts of DR Congo.
e-Levy would not affect AfCFTA in Ghana – Trade Expert (Ghana Business News0
Mr Louis Yaw Afful, Executive Director of the AfCFTA Policy Network (APN), has said that the proposed e-Levy on online transactions contained in the 2022 budget would not affect the Africa Continental Free Trade Agreement (AfCFTA). Mr Afful, speaking to the media, said the policy was an internal arrangement for the government to accrue some revenue, adding that Kenya was one of the countries to have started such a levy as a form of widening up the tax system to capture everyone. He said the implementation of AfCFTA did not prevent participating countries from instituting policies to protect their economic interests as such activities would not affect relationships with other member states.
New Project to Support the Emergence of a Digital Economy in Djibouti (World Bank)
The World Bank today approved a US$10 million credit from the International Development Association (IDA), the World Bank’s program for the poorest countries, in support of Djibouti’s efforts to accelerate the digital transformation and build a more inclusive digital economy. While Djibouti has made significant inroads in becoming a digital hub in regional connectivity and data markets, many Djiboutians do not fully benefit from the country’s connectivity infrastructure. The new Digital Foundations Project aims to ensure that more citizens and businesses have access to quality and affordable internet by developing an enabling environment for the gradual introduction of competition and private-sector investment in information and communication technology (ICT), and by fostering the uptake of digital skills and services. The project is aligned with the new Country Partnership Framework and Djibouti’s Vision 2035, which recognize the role of ICT in economic growth. “Accelerating digital transformation in Djibouti is an urgent necessity for post-COVID-19 recovery,” said Ilyas Moussa Dawaleh, Djibouti’s Minister of Economy and Finance in charge of Industry. “Stimulating economic growth, innovation and job creation through technology is an opportunity that will benefit present and future generations.”
Algeria at a Crossroads (IMF)
The Algerian economy is gradually recovering from the initial impact of the pandemic and last year’s oil price shock. The health crisis has eased, most containment measures have been lifted, and domestic production of vaccines is supporting immunization efforts. With the rebound in hydrocarbon production and prices, growth has resumed, but the outlook is highly uncertain.
The government’s policy response helped cushion the economy. However, the 2020 shocks exacerbated the economy’s longstanding imbalances, accelerating the rise in government debt and the fall in international reserves. Therefore, policy recalibration is needed to safeguard macroeconomic stability. The Government Action Plan that was unveiled in September incorporates wide-ranging reforms to support the recovery, unleash new growth drivers, and bolster governance and social cohesion. Progress on these reforms is also crucial for transitioning to a more stable, diversified and inclusive growth model.
Africa
AfCFTA Secretariat signs MoU with ARSO to drive ambitious free trade agreement (GhanaWeb)
The African Organisation for Standardisation (ARSO) and the African Continental Free Trade Area Secretariat have signed a Memorandum of Understanding (MoU) on the implementation of the AfCFTA agreement. The landmark partnership focuses on eliminating Technical Barriers to Trade (TBTs) that have restricted intra-African trade and undermined regional economic integration. This will ensure that technical regulations, standards, and conformity assessment procedures are harmonized and made non-discriminatory. The Director General of the Ghana Standards Authority and President-elect of ARSO, Prof Alex Dodoo made this known during the opening ceremony of the 65th ARSO Council Meeting in Accra.
“With this agreement, we will accelerate the harmonization of standards for priority products to ensure the private sector trade across the continent without obstacles,” Prof Dodoo said. The crucial role of ARSO in the implementation of the free trade deal has been captured under TBT Annex 6 in the agreement establishing the AfCFTA agreement.
African countries charged to identify solutions to trade problems to facilitate SEZ development (GhanaWeb)
The Ministry of Trade and Industry is urging member states of the African Continental Free Trade Area Agreement (AfCFTA) to prioritize the promotion of the development of both Special Economic Zones and the operationalization of AfCFTA. This, according to the Ministry of Trade, will allow private sector operators to harness the benefits of intra-Africa trade. Addressing delegates on behalf of the Minister of Trade, Alan Kyerematen at the 6th Africa Economic Zones Organization (AEZO) Annual Meeting, Information Minister, Kojo Oppong Nkrumah, asked African countries to take note of the various challenges that may obstruct the smooth operation of free trade on the continent for the full realization of the benefits of the AFCFTA. “The private sector operators cannot harness the benefits of both SEZs and the operationalization of AfCFTA if we do not develop programmes and projects to deal with the high cost of trading across our borders, weak trade infrastructure, inefficient customs clearance and unnecessary bureaucracy and red tape which tend to impede smooth regional trade.
“Ghana has already started implementing a comprehensive agenda for industrial transformation which is in line with the BIAT programme of action, in readiness to take advantage of the AfCFTA. Some of the interventions currently being pursued by the government under the BIAT priority clusters are the ‘One Region One Park’ initiative, which aims at developing at least one industrial park or Special Economic Zone in each of the 16 administrative regions in Ghana to provide easy access to dedicated commercial land spaces for enterprise development.”
The Communique of African Sub-Sovereign Governments Durban, KwaZulu-Natal, 18 November 2021 (Afreximbank)
On the sidelines of the IATF2021 Trade and Investment Conference, the Kwazulu-Natal Government and the African Export -Import Bank (Afreximbank) co-hosted a conference of African Sub-Sovereign Governments on 18 November 2021 under the theme: “African Sub-Sovereign Governments Network as a Vehicle for Promoting Intra-African Trade and Investment” in Durban, Kwazulu-Natal, South Africa.
The Conference noted concerns about the small size and slow growth of intra-African trade as well as the barriers that account for this limitation. Intra-African trade and investment still account for a fraction of the total African trade with the world despite decades of pursuing continental and regional economic integration. The Conference welcomed the establishment of the African Continental Free Trade Area as a platform for promoting and enhancing intra-African trade and investment, seeing it as an opportunity for stakeholders like sub-sovereign governments to contribute to growing intra-African trade and investment. The Conference saw this as key to achieving the objectives of the AU’s Agenda 2063. The Conference noted that promoting intra-African trade would enable Africa to reduce over-reliance on export of primary commodities and the risks of reliance on global value chains. It would also help increase economic integration and build the resilience of African economies against the vagaries of a global economy subject to fluctuations. The Conference acknowledged that there would be great value added by local enterprises in local and regional economic development. Sub-sovereign economies have opportunities that can contribute towards trade across African regions.
Cabo Verde President José Maria Neves on Thursday joined the development community in calling for urgent universal vaccine access as a way to mitigate the impact of Omicron and other variants of the Covid-19 virus. The World Health Organization on Friday categorized Omicron as a Covid-19 “variant of concern”, signifying that it could be more contagious than other known mutations. Neves told participants at the 2021 African Economic Conference that, although the world may have to live with Covid-19 for a few years, “we must act to manufacture our own vaccine and medicines to face this and other pandemics to come. We must find innovative mechanisms for financing and managing sustainable development, otherwise we will disappoint young Africans.”
Antonio Pedro, Deputy Executive Secretary at the Economic Commission for Africa, warned: “Failure to address the pandemic through universal access to vaccines will spawn more resilient and potent variants, threatening the global effort to fight the virus. The recent emergence of the Omicron variant of the Covid-19 virus illustrates my point.”
17th CAADP PP: Ending Hunger in Africa by 2025 (IPPMedia)
Hunger ultimately affects all aspects of our development agenda as a continent,” Dr Ibrahim Mayaki, the CEO of the African Union Development-NEPAD stated during the plenary session of the 17th Comprehensive Africa Agriculture Development Programme (CAADP) Partnership Platform meeting. CAADP was adopted by African Union member states in 2003 as a policy framework to accelerate agriculture led growth, while elevating improved food security and nutrition as well as increasing incomes in Africa’s largely agriculture-based economies. It is framed by ambitious goals to be achieved by 2025. In 2014, all African Heads of State re-committed to the continent’s CAADP targets and principles in the Malabo Declaration. The theme of 17th CAADP Partnership Platform was chosen to take advantage of the renewed momentum that has been created by the UN Food Systems Summit, at a moment when the continent is halfway through the Malabo Declaration timeframe.
“In order to improve the food and nutrition security in the continent, we need to fast-track the implementation of the Malabo Declaration, our approach to achieve the agricultural vision for Africa,” Amb. Josefa Sacko, Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment at the African Union Commission reiterated.
The African Development Bank’s African Natural Resources Centre and the Sustainable Energy Fund for Africa have hosted the first in a series of webinars discussing the potential of Africa’s blue economy. The webinar, held on November 23, centered around a study on the potential of offshore renewable energy in Africa commissioned by the African Natural Resources Centre as part of a series to inform policymaking, planning, and investment in blue economy strategies in Africa. The findings were presented by Linus Hammar from Octopus Ink Research & Analysis, Sweden.
“Financial institutions like the African Development Bank and other green energy funds should work with authorities in Africa and the small island development states to mobilize concessional finance to implement seawater air conditioning projects in their mitigation and adaptation efforts to combat the adverse effects of climate change and reduce dependence on fossil fuels,” he said.
The Southern African Development Community (SADC) Region should put in place policies and regulations that provide a conducive environment to support industrialisation and regional integration, Honourable Minister of Tourism, Culture and Wildlife, for the Republic of Malawi, Dr Michael Usi, has said. Speaking at the Support to Industrialisation and Productive Sectors (SIPS) in the SADC Region stakeholders’ engagement during the just-ended SADC Industrialisation Week, Hon. Min Usi said policy and regulations harmonisation was crucial in providing guidance in the actual operations of development programmes in the Region. He said the Region needs to build capacity to address emerging challenges. The Minister said SIPS had come at the right time as it aims to contribute to the SADC industrialisation and regional integration. He urged all stakeholders to ensure that their policies on the ground are conducive for the programme to achieve its objectives.
SADC urged to report funding of energy and water projects (Devdiscourse)
Water and Sanitation Deputy Minister, Dikeledi Magadzi, has called on the Southern African Development Community (SADC) to report regularly and indicate specific funding they receive in order to ensure that member states are conversant of projects that are undertaken.
The Deputy Minister made the remarks while addressing the 40th joint committee of SADC Ministers meeting responsible for energy and water held virtually on Thursday in Malawi. The department in a statement said the assembly of SADC Ministers was arranged for the common purpose of constructing some practical and feasible solutions to resolve, among other things, the financing of the regional energy and water projects. “The high-level gathering was also convened to lay out a strategic direction which seeks to allow Ministers to evaluate development and take firm decisions on water and energy projects,” it said.
€18,7m IICB programme to amplify SADC regional integration (SADC)
Implementation of the regional integration agenda of the Southern African Development Community (SADC) is being amplified through an €18,7 million programme jointly funded by the European Union (EU) and the Federal Republic of Germany. Through the Integrated Institutional Capacity Building Programme (IICB), the SADC Secretariat seeks to speed up implementation of the SADC regional integration agenda guided by the Vision 2050 and Regional Indicative Strategic Development Programme 2020-2030. Specifically, the IICB Programme is aimed at enhancing the capacity of national structures of SADC Member States and the Secretariat to facilitate and co-ordinate implementation of regional programmes.
China signals cuts in loans to Africa after reduction of financing pledge (The East African)
China has signalled a reduction in loans to Kenya and other African countries in coming years after it cut financial commitment to projects in the continent as much as a third in the next three years. Nairobi has been a major beneficiary of China’s loans for the development of mega infrastructure projects such as roads and a modern railway over the last decade, making Beijing the largest bilateral creditor since 2015. President Xi Jinping on Monday pledged — through a video link to the Eighth Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) in Senegal — to invest $40 billion (Ksh4.5 trillion) in African countries for three years. That represents a 33.33 percent drop from the $60 billion (Ksh6.75 trillion) the world’s second-largest economy has committed to African countries in the last two FOCAC summits, which takes place every three years.
Upholding the brotherhood of Sino-Africa relations (The Star, Kenya)
That the relationship between China and Africa has grown in leaps and bounds over the last couple of decades is not in contention. From increasing bilateral relations, the partnership has now coalesced into a multilateral platform where the partners now discuss overarching issues in order to come into a common understanding. The recent conclusion of the eighth ministerial conference of the Forum on China-Africa Cooperation (FOCAC) in Dakar, Senegal once again proved the unbreakable bond between the two, and huge potential that is still untapped in the win-win partnership.
At the 2018 Focac Beijing Summit, Chinese President Xi Jinping proposed eight major initiatives which were unanimously agreed on by his African counterparts. Since then, the two sides have cooperated in various fields including industrial promotion, infrastructure connectivity, trade facilitation, and green development.
In his speech during the Dakar event, President Xi made four proposals to further entrench the partnership. First is fighting Covid-19 with solidarity where the two put people and their lives first guided by science, support waiving intellectual property rights on Covid-19 vaccines, and truly ensure the accessibility and affordability of vaccines in Africa to bridge the immunisation gap.
Second is deepening practical cooperation by opening up new prospects for cooperation, expand trade and investment, share experience on poverty reduction, strengthen cooperation on digital economy, and promote entrepreneurship by young Africans and the development of small and medium-sized enterprises (SMEs).
China shares agricultural technology, poverty alleviation experiences with Africa (Global Times)
When Chinese agricultural experts visited Mozambique a couple of years ago, they found a lot of rich but mismanaged soil. Highly dependent on weather, the rice yield per mu was only 100-200 kilograms there without scientific planting techniques. Now with the effort of many experienced Chinese experts and China-invested agriculture enterprises, “the rice yields in most areas of Mozambique have reached 600 kilograms per mu,” said rice cultivating expert Li Ganghua, who has been to various African countries with his Chinese coworkers to teach local farmers rice planting skills. “It’s common that the rice yield triples [its previous harvest],” Li told the Global Times.
“We are thinking about... whether we can design some [poverty reduction] methods, which have been proven effective in China, for the reference of African countries,” Wu Peng, Director of the Department of African Affairs in the Chinese Ministry of Foreign Affairs, said in a speech he delivered in late October.
Apart from sharing crop cultivating techniques with African villages, in recent years the world has also seen China spare no effort in helping connect people in rural Africa to the world with modern internet tech.
Now “looking east” and “learning from China” have become a trend in African countries, Zhang Weiwei, director of the China Institute of Fudan University in Shanghai, said in his speech in October. ”With the promotion of the Belt and Road Initiative, and the rapid development of China-Africa trade, the experience of China’s successful rise will attract and inspire a great many people in Africa,” Zhang said.
International
Global trade in goods hits all-time quarterly high of $5.6 trillion (UNCTAD)
The value of world imports and exports of goods hit $5.6 trillion in the third quarter of 2021, setting a new quarterly record, according to an UNCTAD report published on 30 November. New projections in the November edition of the organization’s Global Trade Update show trade in goods and services reaching $28 trillion for the year – an increase of 23% on 2020 and 11% compared with pre-COVID-19 levels. But trade’s overall strong performance masks that the recovery has been uneven across countries and sectors, the report says. “The positive trend for international trade in 2021 is largely the result of the strong recovery in demand due to subsiding pandemic restrictions, economic stimulus packages, and increases in commodity prices,” it says. It also warns that the forecast for 2022 remains very uncertain.
More than two-thirds of WTO membership now part of investment facilitation negotiations (WTO)
Vice-minister Yáñez welcomed the new participants: “More than two-thirds of the WTO membership are now participating in these negotiations — a remarkable achievement. This reflects that, from the outset, this initiative has always been open to all and pro-multilateral.”
The draft Ministerial Statement included a target date to conclude text negotiations by the end of 2022 and reaffirmed the determination to further intensify outreach efforts towards other WTO members. The text also reiterated the importance of developing and least developed country (LDC) members’ participation in global investment flows and the need for technical assistance and capacity building to help them implement the future IFD Agreement.
A battle is brewing at the WTO. Here’s why it matters for a global Covid-19 response (KTVZ)
For the past year, member nations of the World Trade Organization have been deadlocked over a proposal made by India and South Africa to temporarily suspend intellectual property rights to boost production of Covid-19 vaccines and therapeutics for low-income nations. The proposal is backed by more than 100 countries, including the United States. A temporary ban would allow multiple actors to start production sooner, instead of having manufacturing concentrated in the hands of a small number of patent holders, the Lancet reported. Opponents of the waiver want to protect intellectual property to encourage research and innovation. Some rich regions, which are home to big pharmaceutical industries, including the United Kingdom, Switzerland, and the EU, have opposed the waiver, arguing that suspending the IP would not result in a sudden surge of vaccine supply.
Lower-income countries and developing countries find themselves short on vaccine supply, with no authority to manufacture locally and isolated from the world through travel bans when they are hit with a severe wave of Covid-19 cases.
“If we use the traditional way of access, countries’ reaction to pandemic is delayed,” Hu told CNN. “Waiver will open up production of raw materials. Currently, some of it is under monopoly. In order to open up the entire value chain, we need the waiver.”
WTO chief ‘very concerned’ about the unequal distribution of Covid vaccines (CNBC)
The unequal distribution of Covid vaccines worldwide could have a dampening effect on the economic recovery, the World Trade Organization chief warned on Thursday, saying she is “very concerned” about the matter.
Data collected by the WTO, the World Health Organization and the International Monetary Fund show that whereas the U.S. has secured 248% of produced vaccines as a percentage of its population, this rate is only 30% for Mali and 56% for Kenya.
“The level of inequity is quite high,” Ngozi Okonjo-Iweala, Director-General of the WTO, told CNBC on Thursday in an exclusive interview. She noted that the economic recovery in the wake of the pandemic is linked to two determinants: the amount of monetary and fiscal stimulus and the access to vaccines. “I am very concerned that if we continue with the inequity that will have a dampening effect on (the) recovery in those countries,” the Nigerian-born official said.
The trade organization was once again forced to postpone a key meeting scheduled for this week due to the discovery of the new Covid variant.” It was a very painful decision,” Okonjo-Iweala said. The delay is seen as a blow to hopes of temporarily waiving patents for Covid vaccines and achieving more
DHL reveals e-commerce trends and opportunities throughout the pandemic (Parcel and Postal Technology International)
DHL Express has unveiled the results of its 2021 Global Connectedness Index, and reflected on the past year’s events in e-commerce and the trends within the global flow of goods.
In an overview of the entire study, John Pearson, CEO of DHL Express, emphasized the role of e-commerce and the drastic changes it underwent over the examined period. He said, “E-commerce is the commerce. Five years ago, plenty of people bought something online. Last year, just about everyone bought everything online. So it really was a paradigm shift last year. The phrase that came to mind was three years of growth in three months. That’s absolutely what happened around May, June, July: our e-commerce volumes took off by 30%, 40%, 50% – not weight, not revenue – volume. That started to settle down toward the end of the year. It really is a global phenomenon, not just a US, UK, Germany thing only. Any country in the world that has a great product and wants to take it to market from their garage or their small marketplace has the ability to do that and absolutely are doing that.”
The Global Connectedness Index found that global trade in general declined very modestly in 2020 and is on track to rise in 2021. Importantly for the logistics sector, this year’s report found that trade in goods surged to 5% above pre-pandemic levels by early 2021. Nonetheless, the Covid-19 ‘stress test’ also revealed longstanding vulnerabilities that demand attention moving forward. These include the ongoing need for courier services to focus on their merchant customers, and the fact that low-income countries have lagged behind in their recovery of cross-border goods trading.
DDG Ellard cites importance of business engagement with the WTO (WTO)
Global rules of trade, embodied in the WTO Agreements, provide assurance and stability to economic actors across the world. On the one hand, producers and exporters know that they can source components and raw materials from abroad and that foreign markets will be open to their goods and services. On the other hand, consumers know they can enjoy a secure supply of finished products and services. This leads to a more prosperous and peaceful economic world. Moreover, trade has a positive impact on employment and jobs. Industries dependent on international trade are major employers in advanced economies, as well as in many developing ones. For example, in the EU, extra-EU exports of goods and services support around 38 million jobs. In the U.S., one in five jobs is supported by trade. In developing countries that specialize in the production of labour-intensive goods such as light manufacturing, trade creates jobs, including for unskilled workers. The importance of the rules-based trade has been further magnified by the COVID-19 pandemic. According to our data, in 2020, the value of global trade in goods and services in nominal terms fell by 9.6 percent, while global GDP fell by 3.3 percent. This was the most severe recession since World War II. But the trading system has proved itself more resilient than many expected at the outset of the crisis. According to the latest WTO forecast, the volume of global merchandise trade is predicted to grow by 10.8 percent in 2021, followed by a 4.7 percent rise in 2022.
I would like to start with what has been on the minds of many of us since last Friday — the WTO’s decision to postpone the Ministerial Conference (or MC12), which was supposed to start yesterday.
DG calls on members to agree on pandemic response, fisheries subsidies by end-February (WTO)
Speaking to a meeting of delegation heads from all WTO members, the Director-General said the decision to postpone MC12 was “as disappointing as it was necessary”. In addition to the potential health risks from the Omicron variant, travel restrictions introduced in response to its emergence had made it impossible for all ministers to participate on an equitable basis at the conference, which had been set to run from 30 November to 3 December in Geneva.
Just because the ministerial had been postponed did not mean that negotiations had stopped, the Director-General emphasised. She welcomed the ongoing meetings among ambassadors and experts to try to keep bridging gaps they had narrowed over the course of weeks of nearly round-the-clock preparatory negotiations and encouraged them to continue. The challenge for them now was to “recover from last week’s unexpected setback to deliver results for the people we serve”.
Latest delay casts pall over WTO bid to end harmful fishing subsidies (Mongabay.com)
Twenty years is a long time to talk about fish. But hopes that World Trade Organization (WTO) members would finally reach a meaningful agreement to ban subsidies that enable overfishing at the Ministerial Conference (MC12) this year were dashed Friday when organizers postponed the event indefinitely, due to concerns over the novel Omicron COVID-19 variant. “This does not mean that negotiations should stop,” Ngozi Okonjo-Iweala, the WTO’s director-general, said in a press release about the postponement. “On the contrary, delegations in Geneva should be fully empowered to close as many gaps as possible. This new variant reminds us once again of the urgency of the work we are charged with.”
The global trade regulator is grappling with how to keep itself relevant amid rising calls for reform of trade rules made last century that observers say no longer fit present-day economic conditions. Many observers saw MC12, formally the Twelfth WTO Ministerial Conference and scheduled to run Nov. 30 through Dec. 3 in Geneva, Switzerland, as a chance for the WTO to prove its ability to conclude major trade deals and to reform its dispute settlement and negotiation pillars. Other major agenda items for the meeting were the waiver of trade-related intellectual property rights for COVID-19 vaccines and reform of the WTO’s organizational process. Okonjo-Iweala had emphasized the importance of the fisheries subsidies negotiation at an April meeting of delegation heads: “[C]oncluding these negotiations is a top priority for this organization, not only for the fisheries, but also for the WTO system. We simply cannot afford to fail here,” she said. “if there is anything that would demonstrate that the WTO is back and capable of having positive results, it is a good outcome early enough this year to these fisheries subsidies negotiations.”
Negotiations on services domestic regulation conclude successfully in Geneva (WTO)
The declaration notes the conclusion of the negotiations on new disciplines relating to domestic regulation for services that seek to improve the business climate, lower trade costs and cut red tape so as to facilitate services trade worldwide. It also welcomes the schedules submitted by WTO members participating in the negotiations spelling out how each participant will incorporate the new disciplines into its existing services commitments. In the declaration, participants commit to certifying the new commitments within 12 months.
The G20 Common Framework for Debt Treatments Must Be Stepped Up (IMF)
Despite significant relief measures brought on by the COVID-19 crisis, about 60 percent of low-income countries are at high risk or already in debt distress. In 2015 that number was below 30 percent. For many of these countries, the challenges are mounting. New variants are causing further disruptions to economic activity. COVID-related initiatives such as the G20 Debt Service Suspension Initiative (DSSI) are ending. Many countries face arrears or a reduction in priority expenditures. We may see economic collapse in some countries unless G20 creditors agree to accelerate debt restructurings and suspend debt service while the restructurings are being negotiated. It is also critical that private sector creditors implement debt relief on comparable terms.
Recent experiences of Chad, Ethiopia, and Zambia show that the Common Framework for debt treatments beyond the DSSI must be improved. Quick action is needed to build confidence in the framework and provide a road map for helping other countries facing increasing debt vulnerabilities.
Working group on small business launches Trade4MSMEs platform (WTO)
The new platform will allow small businesses to access a diverse range of trade information brought together from a variety of sources. It can be accessed here. The platform contains short guides providing key information on the steps that companies need to follow before exporting or importing goods or services, such as how to assess the export potential of the markets they are targeting and their readiness to export. The guides list the key trade documents required for companies to export or import in various markets, the contractual or intellectual property issues that need to be considered and the logistics and transport options available. The guides also explain how small businesses can access trade finance, make the best use of digital tools, and deal with potential trade disputes.
Despite COVID-19 connectivity boost, world’s poorest left far behind (UN News)
This is good news for global development, but ITU said that people’s ability to connect remains profoundly unequal – as many hundreds of millions might only go online infrequently, using shared devices or facing connection speeds that hamper their internet use. “While almost two-thirds of the world’s population is now online, there is a lot more to do to get everyone connected to the Internet,” Houlin Zhao, ITU Secretary-General said.
The UN agency’s report found that the unusually sharp rise in the number of people online suggests that measures taken during the pandemic contributed to the “COVID connectivity boost.”
From Jobs to Careers: Apparel Exports and Career Paths for Women in Developing Countries (World Bank)
An oft-cited strategy to advance economic development is to further integrate developing countries into global trade, particularly through global value chains, bolstered by the expansion of female-intensive industries that bring more women into the formal labor force. As a result, a frequent debate centers on whether the apparel industry—the most female-intensive and globally engaged manufacturing industry—can be a key player in this regard.
From Jobs to Careers: Apparel Exports and Career Paths for Women in Developing Countries answers this question by focusing on seven countries where apparel plays a vital role in their export baskets—Bangladesh, Cambodia, Egypt, Pakistan, Sri Lanka, Turkey, and Vietnam. It finds that the apparel industry indeed can serve as a launching pad to bring more women into the labor market. But for this approach to work, complementary policies must tackle the barriers that hinder women in their pursuit of long-term workforce participation and better-paid occupations. Key policy recommendations include increasing the participation of female production workers in export-oriented apparel manufacturing and associated industries, upgrading within apparel to manufacturing-related industries, boosting access to education, and breaking glass ceilings.
Closing Remarks delivered at the UN Global Forum on Business and Human Rights 2021 (UNDP)
In response to the question: What are your reflections from the point of view of the United Nations and more specifically of UNDP on the progress made in the first decade of implementation of the UNGPs and the priorities going forward? This year’s Forum looks ahead to the Next Decade of Business and Human Rights. However, the Next Decade is already upon us.
We need to spur state and business action through peer learning. I’m pleased to announce that UNDP and OHCHR will organise a Regional Forum in Africa in May 2022. We need to focus on access to remedy. NHRIs, legal aid systems and judiciaries must receive more support, or the UNGPs risk becoming a ‘toothless tiger’.
The task ahead of us all is not an easy one. However, the level of commitment displayed once again in this Forum encourages us to confront the challenges, one by one, guided by the Roadmap and its key message – that we have to do more, and we have to do it together to ensure the UNGPs fulfil their promise.
tralac Daily News
National
SA’s trade surplus narrows to R19.78bn in October (Moneyweb)
South Africa’s trade surplus narrowed to R19.78 billion ($1.23 billion) in October from a revised surplus of R22.15 billion in September, data from the revenue service showed on Tuesday. Exports fell 5.7% on a month-on-month basis to R147.92 billion, while imports were down 4.9% to R128.14 billion, the South African Revenue Service said.
SA, Nigeria elevate bilateral and trade relations (SAnews)
Two of Africa’s largest economies, South Africa and Nigeria, are today expected to strengthen their longstanding bilateral ties and trade relations during President Cyril Ramaphosa’s two-day state visit in Nigeria.
President Ramaphosa and President Muhammadu Buhari are expected to sign a number of Memoranda of Understanding and agreements across political, diplomatic and economic and trade relations. The visit to Nigeria coincides with the 10th Session of the Bi-National Commission (BNC)
Kenya, South Africa fast track plans for a pan-African airline (The East African)
Kenya Airways (KQ) and its South African counterpart SAA are fast-tracking the launch of an African airline alliance to support their recovery from deep losses and the effects of the Covid-19 pandemic. The two cash-strapped and loss-making carriers this week advanced a cooperation agreement they entered into two months ago into a strategic partnership framework to jointly launch a pan African airline group by 2023. Signed under the gaze of Presidents Uhuru Kenyatta and Cyril Ramaphosa during a three-day State visit to South Africa by the Kenyan leader, the new partnership is expected help both airlines improve their financial viability by leveraging their strategic strengths through deeper coordination of passenger and cargo operations and pricing. “The signing of the strategic partnership framework by the two African airlines will see both airlines work together to increase passenger traffic, cargo opportunities and general trade by taking advantage of strengths in South Africa, Kenya and Africa,” the airlines said in a joint statement.
The Ministry of Industrialisation and Trade in collaboration with the African Union Commission (AUC) and the Economic Commission for Africa’s African Trade Policy Centre (ATPC) and Sub regional Office for Southern Africa (SRO-SA) is organising a Validation Hybrid Workshop of Namibia’s Strategy on the Implementation of AfCFTA on 2 and 3 December 2021 at Safari Hotel, Windhoek, Namibia, preceded by a media sensitization workshop on December 1, 2021 at the same venue. The workshop will review the draft national AfCFTA strategy and implementation plan in terms of the content, the objectives, proposed actions and the implementation framework to address any gaps, correct any misrepresentations and align any inconsistencies to improve the national strategy and implementation framework. The workshop will also review the proposed Terms of Reference for the National AfCFTA Committee to ensure the terms provide a solid foundation for the required leadership in the implementation of the AfCFTA Agreement in Namibia.
KRA to auction overstayed goods at port (Business Daily)
The Kenya Revenue Authority (KRA) will auction assorted goods which have overstayed and whose owners have failed to pay the required tax. The exercise to auction 243 lots, according to the gazette notice issued by the authority, will also help the taxman to meet its revenue target before the end of 2021. The taxman in the notice has invited interested bidders to view the goods with full details being listed in a public notice published in a gazette notice dated 29th October this year. In the notice, the taxman intends to auction different types of goods ranging from electronic, cars, household items among others imported goods which have overstayed in different customs warehouses in the port city. Goods imported for domestic use and transit cargo to Uganda, South Sudan and Rwanda are among those gazetted for auctioning today.
Farmers fight duty-free sugar imports above Comesa quota (Business Daily)
Farmers have challenged in court a decision to allow the importation of duty-free sugar from Uganda above the Common Market for East and Southern Africa (Comesa) quota. A group of farmers through the Kongaren Multipurpose Cooperative Society argues that it was wrong for Kenya and Uganda, being Comesa member states, to engage in separate bilateral trade agreements outside the bloc’s treaty. In a petition at the Mombasa High Court, the cooperative society says sometime in March 2019, the two countries entered into a special arrangement in which Kenya granted Uganda sugar-free access to its market of up to 90,000 metric tonnes above the quota allocated by Comesa to it (Kenya) in 2016.
Through lawyer Gikandi Ngibuini, the petitioner argues that based on the arrangement, Uganda has been exporting sugar to Kenya on zero percent import duty despite the fact that it should incur 20 percent import tax. “There is a real threat of huge quantities of sugar flooding the Kenyan market, which are to be cleared for home use in the country from Uganda on a zero customs and excise duty basis,” states part of the petition. The cooperative society further argues that flooding of Ugandan sugar means that the farmers’ produce will be costlier in the market and not attract buyers.
Uhuru picks economy amid new Covid threat (Business Daily)
President Uhuru Kenyatta has signalled that his administration has no immediate plans to lock down the country again despite the new Covid-19 variant scare that is sweeping across the world, in a major relief to the economy ahead of the festive spending. The President is betting on an accelerated vaccination plan in the coming months to preclude the need for further drastic Covid containment measures such as lockdowns and a night curfew that slowed down the economy last year.
The President’s State of the Nation Address on Tuesday came against the backdrop of fears he might consider imposing new restrictions in response to reports of the new Omicron coronavirus variant, which was first detected in South Africa.
But unlike in many of his recent pandemic-era speeches in which he made a strong case for public health protocols to save lives, the President on Tuesday underlined a focus on revitalising and shielding the recovering economy from Covid shocks. “During the second quarter of 2021, real GDP recorded a phenomenal 10.1 percent growth. This is the highest growth ever recorded in one quarter in Kenya’s history. It is also the first time Kenya has hit double-digit growth. The last time Kenya’s economy got close to this kind of performance was in 2010 during the Grand Coalition Government when the economy hit an 8.4 percent growth rate,” said Mr Kenyatta.
We cannot put investors ahead of workers’ rights – trade expert (Daily Monitor)
From the various consultations and community engagements with casual labourers and community representatives in Kalangala, Kiryandongo, Mubende, and Buvuma where some of the large-scale investment schemes are based, it is evident that cases of human and environmental rights violations are widespread. Uganda is a signatory to a number of protocols that demand protection of the environment and observance of rights. However, in an interview Jane Seruwagi Nalunga, a trade expert told Ismail Musa Ladu, why there is need for a middle ground between investor rights and the investment laws.
Does Uganda’s investment agenda pay attention to issues such as human and business rights violations? Uganda like many other African countries, has put in place policies and regulations to try to attract Foreign Direct Investment (FDI) to provide employment and support economy growth. However, some of these policies look at attracting investors at the expense of Ugandans. Secondly, there is a drive from multinational companies. Many of them are pushing for policy framework that protect their multi-billion investments. So, if you look at the combination of FDI and the influence of multinationals, it is a no brainer that many of our policies are inclined against citizens.
Uganda Economy to Rebound but Could Take Longer to Become a Lower-Middle-Income Country (World Bank)
Uganda’s growth is expected to be between 3.5% and 4.0% in Fiscal Year (FY) 22 and about 5.5% in FY23; both projections are about one percentage lower than the June 2021 forecast, according to the latest edition of the Uganda Economic Update (UEU). The economic recovery in FY21 tapered off in early FY22 mainly due to the more severe second COVID-19 wave in mid-2021 and the related lockdown measures. The 18th UEU: Putting Women at the Center of Uganda’s Economic Revival says that although growth rebounded since the start of the COVID-19 crisis – driven by a pick-up in private consumption and investment, and a recovery in exports – the country is still likely to face a stop-start recovery until there is wider coverage of the COVID-19 vaccine.” To ensure an inclusive economic recovery, faster deployment and widespread coverage of the vaccine is critical,” said Mukami Kariuki, World Bank Country Manager for Uganda. “It is encouraging to note that in January 2022, schools will be opened; and support to micro, small and medium enterprises has been prioritized to stimulate job creation. Staying the course will require sustained prudent and transparent fiscal and debt management.”
Tz domesticates Malabo declaration in agriculture investment plans (Dailynews)
TANZANIA is among the African countries that have domesticated the famous Malabo declaration, especially on implementation of all the National Agriculture Investment Plans (NAIPs) which are under the declaration. The Ministry of Agriculture said this during the Malabo Policy Learning Event (MAPLE) which kicked off on Monday this week via video conference that was followed directly by different stakeholders from across the continent.
According to the Comprehensive Africa Agriculture Development Programme (CAADP) focal point in the Ministry of Agriculture in Tanzania, Ms Adella Ng’atigwa, the implementation framework for the programme was based on the country’s special agricultural programme dubbed Agricultural Sector Development Programme II (ASDP II), despite the policy and strategic statements which include among others the National Strategy for Growth and Reduction of Poverty (NSGRP/MKUKUTA) and the Zanzibar Strategy for Growth and Reduction of Poverty (ZSGRP/MKUZA)
The new development came during the stakeholders meeting in the agriculture sector, who among other issues called for a coordinated approach in implementation of the Malabo Declaration in efforts to end hunger and increase food security in the African continent.
Nigeria/Africa’s disturbing trade deficit (The Sun Nigeria)
The recent report that Nigeria and the rest of Africa account for only two per cent of global trade is disturbing. It is a reflection of the consumption nature of African economy and our seeming inability to expand our export trade. Specifically for Nigeria, the report is even more depressing because of her infrastructure deficit estimated at $100 billion annually. This represents 189.77 per cent more than the current 2021 budget, and it may take three decades to close the gap. Meaningful development and sustainable trade growth will be hard to achieve until Nigeria and other African countries shift from import-dependence to manufacturing of goods for export.
The recent report that Nigeria and the rest of Africa account for only two per cent of global trade is disturbing. It is a reflection of the consumption nature of African economy and our seeming inability to expand our export trade. Specifically for Nigeria, the report is even more depressing because of her infrastructure deficit estimated at $100 billion annually. This represents 189.77 per cent more than the current 2021 budget, and it may take three decades to close the gap. Meaningful development and sustainable trade growth will be hard to achieve until Nigeria and other African countries shift from import-dependence to manufacturing of goods for export.
There is also need to focus on non-oil sectors for export. It is laudable that these concerns dominated discussions at the recent Intra-Africa Trade Fair, in Durban, South Africa, where the Secretary-General of the African Continental Free Trade Area (ACfTA), Mr. Wamkele Mene, lamented that Africa’s over-dependence on export of raw commodities will impede the continent’s trade growth.
AfCFTA: NEF Seeks Quality Packaging Of Non-oil Commodities (Leadership)
The Nigeria Entrepreneurs Forum (NEF), said for Nigeria to effectively maximise the economic benefits of the African Continental Free Trade Agreement (AfCFTA) adequate measures must be put in place for quality packaging of the nation’s non-oil commodities for export. The president of NEF, Dr Sidney Inegbedion, said Nigeria is blessed with abundant agricultural commodities and resources needed to boost her economic growth in the international market if effectively harnessed. According to him, the training is part of NEF strategies of enhancing the leadership of small holder farmers through productive corporate governance and value chain development.
Nigeria’s low tax-to-GDP ratio not justification for increasing taxes, AfDB tells FG (TheCable)
Akinwumi Adesina, president of the African Development Bank (AfDB), says the federal government must exercise restraint in tax increment. He said that the fact that the country’s tax to gross domestic product (GDP) ratio at 6.1 percent remained relatively low was not an excuse for incessant tax increase. The AfDB boss said this on Tuesday in Abuja while delivering a lecture at the 51st annual conference of the Institute of Chartered Accountants of Nigeria (ICAN) themed ‘Trust in Governance’. To increase tax revenue, Nigeria raised its value-added tax (VAT) rate from five percent to 7.5 percent in 2020.
“While tax rates are relatively low in Nigeria, it simply is not an excuse to keep increasing taxes,” Adesina said. “While progress is being made the challenge, however, is that in many parts of Nigeria, citizens do not have access to basic services that governments should be providing as part of the social contract.
“These are implicit taxes, borne by society due to either inefficient government or government failure. As such, we must distinguish between nominal taxes and implicit taxes — taxes that are borne by the people but are not seen nor recorded.
DRC can get better value for cobalt by processing, rather than exporting, raw materials (Energy Storage News)
The Democratic Republic of Congo (DRC) supplies most of the world’s cobalt, but exporting semi-finished or finished products rather than raw materials would better help the country capture the value of the metal used in high power lithium-ion batteries. A new report has found that the export of raw materials is not economically beneficial to the DRC and other countries with significant resources in the long-term, compared to exporting products like battery cathode precursor materials. At present, nearly all of the DRC’s cobalt capacity is exported to Europe and China for processing. Not only that, but it would actually be cheaper to build manufacturing facilities for battery cathode precursor materials in the DRC than in the US, China and Poland and would have less intensity of carbon dioxide emissions. In a new study, ‘The cost of producing battery precursors in the DRC,’ analysts from BloombergNEF found that at a calculated cost of about US$39 million, it could be three times cheaper to build a 10,000 metric tonne cathode precursor plant in the African country — which currently supplies about 70% of the cobalt used in global lithium-ion batteries — than in the US.
Tunisia’s clothing exports to European market up 11% (CETTEX) (TAP)
Tunisia’s clothing exports to the European market were up by 11.27% in the first 8 months of 2021 compared to the same period in 2020, according to the results of an analysis conducted by the Textile Technical Centre (CETTEX) on the European clothing imports.
In value, exports stood at about €1.1 billion during the first 8 months of 2021. Tunisia is the EU’s 9th largest supplier of clothing with a market share of 2.69%, according to this analysis published Tuesday. Despite a drop in European imports, some suppliers increased their clothing exports to the EU, including Tunisia, achieving better returns with an increase of 11.2% of their exports to this market.
Africa
Experts highlight hindrances in the way of AfCFTA actualisation (The New Times)
African experts have spoken out on the hindrances that Africa should address as it gears towards implementing the African Continental Free Trade Area (ACFTA). In a meeting held at the Kigali Convention Center over the weekend dubbed the African Regional Journal Forum, African economic experts from various countries spoke about the ACFTA and the bottlenecks that governments need to tackle to implement it.
Sylvie Potignon, a Cyber Security Investor based in the United Arab Emirates said that Africa also has a lot of work in addressing cyber-security related issues as it looks to trade under the ACFTA. “We talking about ACFTA, but how many of you are sure that your country is protecting you (in terms of cyber security)?” she asked her audience. “We have the convention of Malabo. They wrote everything that was necessary, but only 8 countries have signed it. This is not enough. You want to do free trade, but when you start, you will be using I.T, the internet, networks. These people abroad (hackers) are waiting for us,” she added.
Marlon Weir, the CEO of Afrikanekt, an all-in-one platform for multiple solutions including fintech, entertainment among other things said the ACFTA agreement has made the possibility of our ancestors’ wildest dreams,” of free movement of goods and people. “The establishment of the AfCFTA presents an unprecedented opportunity for continental cooperation, promising economic development and sustainable growth,” he said. “We must be nimble – fleet of mind and foot – in order to spot opportunities and act succinctly. Furthermore, it is not enough to just move fast – we have to have a plan and forge strategic partnerships that will make us sustainable and go far… and in order to go far, we have to go together – “forward ever, backward - never!”
IATF 2021 Generates US$42.1 billion Trade and Investment Deals (Afreximbank)
The second Intra-African Trade Fair (IATF 2021) generated a record setting US$42.1 billion in trade and trade-related investment deals, according to the latest tally released today by the IATF Advisory Council. The latest figures captured additional data submitted by Trade Promotion Agencies of Algeria, Nigeria and South Africa.
This record value of trade and investment deals was the outcome of more than 500 business deals concluded during the rich and varied 7-day programme of business-to-business, business-to-government and government-to-government exchanges, exhibitions, trade and investment conference sessions, as well as other verticals, such as the Creative Africa Nexus (CANEX) programme, the IATF Automotive Show and the African Union’s Youth Start-Up programme.
IATF 2021 thus surpassed its pre-set target of US$40 billion in trade and investment deals, going well beyond the US$32 billion in transactions closed at the first edition in Cairo, Egypt in 2018.
Kagame to open major continental meeting on civil aviation (The New Times)
Different delegates from African member states have on December 1, convened in Kigali for the African Civil Aviation Commission meeting, which is set to discuss matters of concern in the aviation industry. The New Times has learnt that matters of discussion range from the safety and security of the African aviation industry, sustainable development of air transport in Africa, the Yamoussoukro Decision, and the Single African Air Transport Market (SAATM).
A survey by IATA indicates that if just 12 key Africa countries opened their markets and increased connectivity, an extra 155,000 jobs and US$1.3 billion in annual GDP would be created in those countries.
Airlines stare at fresh storm as new Corona variant emerges (Business Daily)
Airlines, including national carrier Kenya Airways, are staring at a slowdown in business ahead of the festive season as nations impose new travel restrictions on South Africa and seven other countries due to a highly infectious new coronavirus strain. The discovery of the new Omicron coronavirus variant in South Africa has caused a panic move globally forcing nations to impose travel bans. The European Union, the United States, Israel, United Arab Emirates, the UK, among other nations, have suspended flights to southern Africa while Singapore, Italy, and Israel have placed all of those nations, plus Mozambique, on their red lists.
The latest Covid-19 crisis is already causing a storm in the aviation sector with players such as Kenya Airways expected to suffer disruptions at a time they had projected bigger businesses coinciding with the Christmas festivities. The global aviation industry had started showing signs of recovery as more countries opened their borders with an increase in the rate of vaccinations, giving hopes to the sector that was hit hard by the pandemic. International Air Travel Association (IATA) said the sector recorded an 18 percent growth in September, compared with the previous month, in what came as good news to the sector.
The emergence of the new variant will now see airlines go back to the drawing board in regard to additional frequencies that they had planned to increase ahead of the holiday season.
Media Statement: SADC Parliamentary Forum Statement on Travel Bans (sardc.net)
The Southern African Development Community Parliamentary Forum is cognisant that the Covid-19 pandemic is causing worldwide fears and tensions, especially with the upsurge of new virus variants. While public health remains a priority, the Forum considers that there is a need to rely at all times on verified scientific and empirical data, such as those shared by the World Health Organisation (WHO), before imposing travel bans that may seem unjust or harsh for some countries. The need for international cooperation to share information buttresses the recent action of the SADC Group at the InterParliamentary Union (IPU) held from the 26th-30th November 2021 in Madrid, Spain, which called for greater equality in the procurement and distribution of Covid-19 vaccines.
Travel bans are never favourable to the economy, whether it is the economy of the imposing country or the one of the affected country. Travel bans are also devastating to airline companies who are struggling to stay afloat and to rebuild after almost 2 years of travel slowdown. It is thus important for bans to be imposed only based on verified and reliable information that has been preferably endorsed by the WHO.
SADC Region prepares for the 2021/ 22 cropping season (SADC)
In preparation for the 2021/22 cropping season, the SADC Secretariat convened a virtual meeting of the Technical Committee of Directors of Crop Production on 22-24 November, 2021. The committee is responsible for regular review and monitoring of regional instruments guiding the crop sector. The Technical Committee addressed a number of topics including enhancing domestication and implementation of the Regional Crop Development Programme and the implementation of the SADC Plant Genetic Resource Centre programmes and projects. The meeting discussed progress and updates on the implementation of the Regional Crop Development Programme (2019) by Member States, SADC Secretariat and partners; and Assessment of regional preparedness for the cropping season 2021/22 by all parties participating. It reviewed and validated draft regional instruments and frameworks for enhanced attainment of priorities outlined in the Regional Crop Development Programme (RCDP) (plant genetic resources issues, fertilizer and irrigation).
The Committee noted that in view of the prediction of good rains in most parts of the Region by the Southern Africa Regional Climate Outlook Forum (SARCOF) in August 2021, Member States should prepare for a possibility of flooding and cyclones. Furthermore, the predicted weather forecast also provides a conducive environment for breeding of locusts and other transboundary pests and diseases, calling for enhanced monitoring and surveillance.
African Energy Chamber Calls on CEMAC Leaders to Improve Business Climate at CEMAC Business Forum (APO)
The African Energy Chamber (AEC) executives called on regional leaders and energy ministers to improve the business climate at the CEMAC Business Forum in Brazzaville on Tuesday, specifically taking aim at the Bank of Central African States’ (BEAC) foreign exchange regulation that imposes stricter rules on currency transfers and payments and faces full implementation from January 2022.
While initially intended to safeguard dwindling foreign exchange reserves in the region, the new forex regulations have proven contentious among African energy industry leaders, stakeholders and lobbyists, who argue that they deter investment and impede private sector growth by increasing transactional and operational costs and limiting access to foreign financing for local businesses. As a result, the AEC has called for an open and honest dialogue and urged local leadership to listen to industry and embrace free market principles by eliminating lengthy and bureaucratic regulations.
The ECOWAS Commission, in collaboration with the United Nation Economic Commission for Africa (UNECA), organized a meeting on 23-25 November 2021 in Abidjan – Cote d’Ivoire, to review the draft Regional AfCFTA Implementation Strategy as part of preparations towards a regional validation workshop by ECOWAS Member States.
In his opening remarks, the representative of UN Economic Commission for Africa (UNECA), Mr. Amadou DIOUF highlighted initiatives being undertaken by UNECA towards the implementation of the AfCFTA, including supporting the development of national AfCFTA implementation strategies. He underscored the role of Regional Economic Communities as the building blocks for African economic integration and commended the ECOWAS Commission for initiating the development of the regional implementation strategy which would complement efforts being taken at the national level.
West Africa has Leaped in All Development Indices, Says ECOWAS (This Day)
The Vice-President of the Economic Community of West African (ECOWAS) Commission, Madam Finda Koroma, has said that in the course of 2021, the West Africa region has taken a great leap in all development indices, insisting that countries in the region are now borderless than in the past. Speaking during the meeting of ECOWAS Administrative and Finance Committee (AFC) in Abuja, Koroma said: “We have moved economic and monetary integration agenda forward and have enhanced the peace and security architecture to foster tranquility for political, social and economic development in our region. “Additionally, our 2021 programming has led to improvements in key areas of our community such as agriculture, environmental protection, climate change mitigation and adaptation, infrastructural development, promotion of education and cultural exchange, youth development and the advancement of gender equality.
“Our private sector is becoming more engaged and is receiving significant support in advancing economic development and integration for our region, especially in the context of the African Continental Free Trade Area (AfCFTA). This includes support to ICT start-ups. Special initiatives such as the Regional Stabilisation and Development Fund and the Integrated Human Capital Development Strategy have advanced significantly in achieving their respective objectives.”
Summit calls for more Africa-EU investments in sustainable Agriculture (Africanews)
Investors have been urged to take advantage of Africa’s arable land to drive sustainable agriculture and increase food production. This was amongst the conclusions of Business leaders and policymakers at the 4th edition of the EU-Africa business summit in Marrakech held to promote business and policy initiatives between both continents. Experts say key private sector investment and policy implementation are what’s needed to drive further growth.
“This is the time for partners from all over the world to come and invest in the continent. They have the freedom to establish under the The African Continental Free Trade Area (AfCFTA) in any of their preference, and wherever they are established we are saying that their market is a whole continent,” said Chiza Charles Chiumya, the acting Director of the Directorate of Industry, Mining and Entrepreneurship, at the African Union Commission.
Trade imbalance remain key concern at Africa-China forum (Kenya Broadcasting Corporation)
The exports and imports mismatch has been highlighted as a key concern as Africa continues to deepen trade with China. African leaders at the Forum for Africa-China Co-operation (FOCAC) currently underway in Dakar, Senegal have called for correction of the trade imbalance which favours the asian economic giant.
“There is urgent need to address the widening trade imbalances to facilitate a fairer share of the benefits of trade. In this regard, FOCAC partners must focus on ways to ameliorate the Africa-China trade imbalances, boost China-Africa trade and promote a win-win framework through increased exports from Africa, especially in Agricultural products,” said Ukur Yatani, National Treasury and Planning Cabinet Secretary.
International
WTO, IFC heads agree to enhance cooperation on trade finance (WTO)
In a joint statement, the two pledged to enhance existing cooperation to improve the analytics, identification and detection of trade finance gaps in order to better direct capacity building and other resources where unmet demand is greatest, particularly in Africa. “Our developing country members regularly identify a lack of trade finance as a major obstacle to participating in global trade — all the more so for micro, small and medium-sized enterprises, and businesses led by women,” DG Okonjo-Iweala said. “Working together, experts from our two organizations will be able to better analyse, detect and explain trade finance gaps, with a view to directing finite resources where they are needed the most. I believe that a significant share of trade finance gaps results from knowledge gaps.” “Trade is the lifeblood of the global economy but without trade finance, there can be no effective trade,” said the IFC’s Managing Director, Makhtar Diop. “By expanding our knowledge of trade finance gaps and bolstering traders’ capacity, IFC and the WTO can help small enterprises in developing countries integrate into the global economy.”
WTO members support maintaining momentum of discussions on common IP COVID-19 response (WTO)
The TRIPS Council meeting, which had been convened before the announcement of MC12 being indefinitely postponed, saw members sharing the common view that the WTO cannot afford to lose the momentum that was gathering in the discussions among delegations, with a view to finding a pragmatic and tangible consensus-based solution on this issue.
The chair of the Council, Ambassador Dagfinn Sørli of Norway, said he will consult in the coming days and weeks with members to help facilitate continued engagement, and with a view to finding consensus on a substantive solution. This includes by convening small-group consultations and where necessary meetings open to all members for the purposes of transparency and inclusiveness.
The objective of keeping these agenda items open is to enable re-convening the TRIPS Council at short notice when and if there are indications that members might be closer to finding a landing zone. The chair said that meeting rooms have been booked for 10 December and 16 December to reconvene the Council, should this become appropriate as a result of new developments.
Supporting Least Developed Countries (LDCs) in the Commonwealth ahead of WTO Ministerial Conference (The Commonwealth)
The World Trade Organization’s (WTO) forthcoming 12th Ministerial Conference (MC12), to be held from 30 November to 3 December, comes at a time when the COVID-19 pandemic has disrupted human and economic activities and heightened the significance of trade-related responses to accompany other global initiatives. Enhancing the participation of developing countries, including Commonwealth least developed countries (LDCs), in the multilateral trading system is indispensable because trade is an essential tool for growth and development. The WTO LDC Group, which includes eleven of the thirteen Commonwealth LDCs, have prepared and advanced proposals on their priorities and expected outcomes at MC12.
Advanced global workshop on Government Procurement Agreement concludes (WTO)
The workshop gave participants the opportunity to share their experiences regarding the benefits of the revised WTO Agreement on Government Procurement (GPA) adopted in 2012. The revised Agreement — also known as “GPA 2012” — is based on the principles of non-discrimination, transparency and procedural fairness.
In opening the workshop on 25 October, WTO Deputy Director-General Anabel González noted the special character of this year’s workshop as “the WTO celebrates the 25th anniversary of the WTO GPA, which entered into force in 1996, and the 40th anniversary of the first-ever version of the GPA”. She highlighted the vital role of government procurement in “building infrastructure and delivering essential public services for the benefit of citizens, including health, education and national defence”, and the “undeniable development dimension” of sound and efficient procurement procedures.
Natural Disasters, Trade Policy and Trade Negotiations: Challenges, Solutions and Resilience Building for Small Island Developing States and Others (The Commonwealth)
From December 1-3, 2021, the International Institute for Sustainable Development (IISD) is providing a virtual space ‘The IISD’s Trade + Sustainability Hub’ for civil society, government, business, and international organizations to discuss trade and sustainable development. This virtual session on Wednesday, December 1, 2021, 3:30 PM - 4:45 PM GMT is co-organized by The Commonwealth Secretariat, Shridath Ramphal Centre at the University of the West Indies and WTI Advisors and will examine ways to mobilize trade and trade policy to mitigate the consequences of natural disasters and ensure the sustainable development of Small Island Developing States (SIDS).
OECD Economic Outlook sees recovery continuing but warns of growing imbalances and risks - OECD (OECD)
The global recovery is continuing but its momentum has eased and is becoming increasingly imbalanced according to the OECD’s latest Economic Outlook. The failure to ensure rapid and effective vaccination everywhere is proving costly with uncertainty remaining high due to the continued emergence of new variants of the virus. Output in most OECD countries has now surpassed where it was in late-2019 and is gradually returning to the path expected before the pandemic. However, lower-income economies, particularly ones where vaccination rates against COVID-19 are still low, are at risk of being left behind. The Outlook projects a rebound in global economic growth to 5.6% this year and 4.5% in 2022, before settling back to 3.2% in 2023, close to the rates seen prior to the pandemic.
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National
Cyril Ramaphosa | Let’s focus on the continent for renewed trade and investment opportunities (News24)
Since the outbreak of the Covid-19 pandemic last year, which coincided with our term as African Union (AU) chair, our focus has been on responding to the impact of the pandemic on human health, society and economies.
South Africa was, for example, instrumental in the establishment of the Africa Medical Supplies Platform to enable countries to procure personal protective equipment and medical supplies, as well as the African Vaccine Acquisition Task Team, which secured millions of vaccines for the continent.
As we continue to combat the virus, our focus is also on a sustainable economic recovery.As part of our economic diplomacy efforts, we are giving renewed attention to promoting trade and investment with countries on our continent.That is why this week I will be undertaking visits to four West African countries: Nigeria, Ghana, Côte d’Ivoire and Senegal.These are countries with which we have strategic partnerships and are markets in which a number of South African businesses operate. In addition to government ministers and officials, I will be accompanied by a delegation of business people representing sectors such as manufacturing, agriculture, construction, consumer goods, renewable energy, healthcare and pharmaceuticals.
At the beginning of this year, one of the most significant milestones in the quest for African economic integration was reached when trade officially commenced under the African Continental Free Trade Area (AfCFTA). This presents immense opportunity for the export of South African goods and services into the continent.
In all these visits, we will be looking to build trade and investment relationships that benefit growth, development and employment in each country. For far too long, we African countries have trained our gaze on trade and investment opportunities in markets beyond the continent, such as Europe, Asia and North America. If the AfCFTA is to be a success, we have to both strengthen the existing trade relationships with countries closer to home and forge new ones.
Travel bans due to Omicron “hammer blow” to South Africa’s local economy recovery: official (Daily News Egypt)
Travel bans on South Africa due to the new Omicron coronavirus variant will be “devastating” for the provincial economy as the local government is seeking for a recovery on its key tourism sector from COVID-19 impact, Western Cape provincial official said in a press release on Sunday.
The economy of Western Cape, South Africa’s popular tourism destination that hosts the legislative capital Cape Town, relies on international visitors during the peak season, which starts from December when South Africa is in summer, said Alan Winde, Premier of Western Cape. “This has been a hammer blow to our major job-creating sector in the province precisely when we needed a recovery, to claw back jobs lost over the last 19 months,” said Winde.
Zim submits proposed AFCfTA tariff offer to AU Commission (The Herald)
Zimbabwe has submitted the draft of its proposed African Continental Free Trade Area (ACFTA) tariff market access offer to the African Union Commission (AUC) for consideration. Industry and Commerce Minister Dr Sekai Nzenza made the revelation last week in her presentation at the Competition and Tariff Commission’s National Trade Tariff Day. “I urge the Competition and Tariff Commission to go beyond the national tariff day and arrange similar workshops with other sectors in 2022 to prepare our local industry for the implementation of the (ACfTA) agreement,” she said. “If there are significant comments and reviews from AUC, as will be advised through the Ministry Foreign Affairs and International Trade, my ministry will engage the commission to undertake further consultations and I’m sure the livestock sector will be part of the consultations,” she said.
‘No better time to invest in Zim than now’ (Sunday Mail Zimbabwe)
There is no better time to invest in Zimbabwe than now, Industry and Commerce Minister, Dr Sekai Nzenza said, as she implored investors to leverage on economic growth, consistent policy environment and global market opportunities. Speaking at the eighth edition of the Southern African-European Union CEO dialogue in Johannesburg, South Africa, last week, Dr Nzenza said the Government has prioritised the ease of doing business reforms to create an enabling business environment. “We have strived to create a policy framework which makes it easy and competitive for the pursuit of investment in Zimbabwe,” she said.
The “Zimbabwe is Open for Business” mantra, she added, has seen several measures being put in place to improve the business environment. These include operationalisation of a one-stop shop investment and trade facilitation entity — the Zimbabwe Investment and Development Agency (ZIDA) — and creation and streamlining of the National Quality Policy with a view of aligning it to regional and international practices. The Government is also pursuing Mutual Recognition Agreements (MRA) to smoothen trade.
Lobby calls for better Kenya, China trade relations (Business Daily)
Kenyan firms have been challenged to invest more in trading with China in a bid to foster a more robust trade relationship between these countries. The Vice President of the Kenya National Chambers of Commerce and Industry Dr. Erick Rutto said the inter-trade relationship between Kenya and China is skewed in favour of the Asian giant despite a big potential for Kenyan firms in the Chinese market. Speaking during the Kenya International Industrial Expo 2021, Dr Rutto said the event is a platform aimed at opening investments opportunities for local investors to the huge Chinese market which has over 1.3 billion people. It also links Chinese manufacturers to Africa industries.
Dr Rutto called on Kenyan firms and Small Micro Enterprises (MSMEs) to use technology in order to improve exports to the Chinese market. Kenya exported goods worth $134.8 million to China and imported goods worth $3.29 billion, a disparity Dr. Rutto said would be solved through the formation of partnerships with businesses in China.
Import tax relief delay keeps feed prices high (Business Daily)
The Treasury is yet to waive duty on yellow maize a month after President Uhuru Kenyatta issued a directive on emergency measures to lower the cost of animal feeds, exposing Kenyans to costly food as farmers pass on the cost to the consumer. The President issued his directive on October 20 to the Agriculture Ministry and the Treasury to come up with intervention measures within seven days from the date, to address the rising cost of feed that has now hit a historic high. The Agriculture ministry prepared the intervention measures, which included a duty waiver on the importation of yellow maize, but the Treasury is yet to approve the proposal. Stakeholders in the sector argue that the delay in approving the relief measures is having a negative impact on both the farmers and manufacturers, who are struggling to control costs.
Rise in Uganda coffee exports earns $657m (The East African)
Uganda’s coffee exports have continued to increase in both value and quantity, despite a ravaging pandemic, at the backdrop of adverse weather conditions and Covid-19 restrictions in the world’s biggest exporters like Brazil and supply disruptions around the world. Uganda Coffee Development Authority (UCDA) data shows that the country exported 6.55 million bags of coffee worth $657.23 million in the year to October 2021, compared with 5.41 million in the same period last year, earning $513.79 million.
The increase in exports is attributed to government efforts in 2012 which saw millions of seedlings distributed to farmers to grow new bushes across the 98 coffee growing districts. “Increasing exports were due to newly planted coffee which started yielding supported by favourable weather. This was also complimented by a positive trend in global coffee prices,” the report reads.
Uganda, Tanzania asked to relax trade laws as oil nears (Independent)
The private sector, specifically those in businesses relating to the oil and gas industry, want the governments of Uganda and Tanzania to lift some national laws that hinder companies from trading especially across the border. Focus has increasingly been put on projects that companies in Uganda may want to undertake in Tanzania and vice-versa for the Tanzanian investors. Currently, while the two countries have tried to introduce some harmonized policies regarding the industry, the private sector say there are still some areas where it is difficult for them to cross borders. Patrick Mweheire, the Chairman of the Uganda Chamber of Mines and Petroleum on Sunday gave the example of Tanzania’s view of local companies, where for one to be considered, there must be a 25 percent local ownership. In Uganda, the Local Content Policy provides for companies started and registered in the names of Ugandans, and some products and services in the oil and gas industry have been ring-fenced for them. The other services are free to be competed for by any person.
Speaking at the Tanzania-Uganda Oil and Gas Symposium in Dar es Salaam, Mweheire asked that such barriers should be lifted for at least three years to help the private businesses in the two countries to take advantage of the available opportunities.
Covid-19: Angola shuts borders with 7 countries in southern Africa (The East African)
Angola government has Saturday shut its borders with seven southern African countries to curb the spread new Covid-19 variant. The countries which are members of the Southern African Development Community (SADC) are South Africa, Botswana, eSwatini, Malawi, Mozambique, Namibia and Zimbabwe.
Angolan government’s move comes after South African scientists detected a new Covid-19 ‘super-variant’ with multiple mutations.
Nigeria’s current account deficit drops to $424 million in Q2 2021 (Nairametrics)
Nigeria recorded a current account deficit of $424 million in the second quarter of 2021, dropping to its lowest level in over two years. This is according to data on Nigeria’s balance of payment from the Central Bank of Nigeria (CBN). Although Nigeria’s balance of payment continues to trail in the negative region, it dropped significantly by 79.8% compared to a deficit of $2.1 billion recorded in the previous quarter. Also, it reduced by 87% compared to a deficit of $3.27 billion recorded in Q2 2020. The upward movement in the country’s balance of payment is attributed to the significant surge in crude oil export. Notably, crude oil export increased by 73% quarter-on-quarter in Q2 2021 from $6.48 billion to $11.22 billion. Compared to the corresponding period of 2020, crude oil export increased by 116.7% from $4.31 billion.
It is worth noting that the rally in the global crude oil market and the reopening of economies and relaxation of lockdown measures around the world are major contributing factors to the surge recorded in the value of Nigeria’s crude export. However, when compared to pre-pandemic levels, we are yet to earn as much from crude oil exports. This is due to the decline in crude oil production.
Oil export and household spending to drive Nigerian economic growth in 2022 – Fitch report (Nairametrics)
Nigeria’s economy is expected to grow by 2.8% in 2022 on the back of stronger household spending and an increase in crude oil export value. This is according to projections in the Nigeria Country Risk report, by Fitch Solutions. The projections were made following expected growth of 2.1% in 2021 from the 1.9% contraction recorded in the previous year, which was affected by the covid-19 lockdown measures. According to the report, government consumption is expected to rise in the coming year, based on the 2022 budget announcement by the Finance Minister. It also hinges the projections on increases in fixed investment and oil exports. However, the downside to the projection includes a sharper economic slowdown in China and the emergence of vaccine-resistant strains of the covid-19.
Nigeria’s Non-oil Revenue Now N1.15 Trillion – Minister of Finance (Investors King)
Mrs. Zainab Ahmed, the Minister of Finance, Budget and National Planning, has said that Nigeria’s non-oil revenue is now N1.15 trillion, representing 15.7 percent above the country’s target. This, she claimed, was a result of the federal government’s efforts at diversifying the nation’s economy.
According to the News Agency of Nigeria (NAN) the event with the theme: “Creating the Future: Deepening the Corporate Governance Practice through Multi-Sectoral and Multi-Generational Collaborations,” was meant to discuss economic development.
Mrs Ahmed added that the recent development was in line with President’s commitment to further diversifying the Nigerian economy which is heavily dependent on oil. She observed that Nigeria was showing resilience in recovery from recession from coronavirus (COVID-19) pandemic which intensely affected global economies.
“Our non-oil revenues have grown to N1.15 trillion, representing 15.7 per cent above set target. We are working on the 2021 finance bill and it’s nearing completion. Also, the recent approval of the medium-term national development plan is an important milestone of Buhari’s commitment to delivering sustainable growth and we require strong support and monitoring during implementation,” she said.
Accra puts in place a new economic and financial resilience plan in wake of COVID-19 (UNECA)
Accra’s economy, like that of other African cities, was hard hit from the onset of the COVID-19 pandemic. Yet, as per a study by the city, with the support of the United Nations Economic Commission for Africa (ECA), Accra demonstrated notable capacity to bounce back swiftly and record growth by the end of 2020. According to the study, most of the economic stagnation was concentrated in the lockdown period from March to May in 2020, followed by substantial recovery in most sectors. The findings of the study were presented at a multi-stakeholder workshop in Accra on 25 November, which brought together city officials, including Greater Accra Regional Minister Henry Quartey and Mayor of Accra Elizabeth Sackey, along with delegates from UN agencies, businesses and civil society.
While many areas of strength were noted, the study points outs weakened resilience in the local business environment, labor market and financial system, stemming from low productive activities, weak financial intermediation and poor social protection systems, especially for those in the informal sector. In addition, Accra’s small and medium-sized businesses find it especially hard to access affordable finance.
In view of the findings, an Urban Economic Recovery and Resilience Plan has been drafted for the Accra Metropolitan Authority with technical assistance from ECA.
Full involvement in AfCFTA could increase national income by 6% by 2035 (Minister of Trade) (TAP)
“Tunisia’s national income should increase by 6% by 2035 under the condition of a full involvement in the African continental zone, through the removal of tariff and non-tariff barriers and the adoption of a trade facilitation approach,” Trade and Export Development Minister Fadhila Rabhi Ben Hamza said Friday in Tunis.
The minister, who was speaking at the opening of the international conference on African trade agreements, particularly in relation to the African Continental Free Trade Area (AfCFTA), added that “Tunisia would be one of the main beneficiaries of the advantages brought by this African free trade area,” noting that once the agreement on the creation of this area is implemented, “the share of Tunisian exports to Africa will increase by 91%, to reach 19% of total exports in 2035, compared to about 11% currently.
African Union endorses Togo’s vaccine passports, first in Africa (GhanaWeb)
The African Union (AU) has endorsed vaccine pass standard (Trusted Vaccines) and COVID-19 testing certificate standard (Trusted Travel) of the Republic of Togo. Togo is the “first country to offer a continental vaccine pass and testing certificate to its citizens”, a joint statement with the African Union on Thursday said while many African countries are deploying the trusted vaccines solution and several more have launched trusted travel in recent months, The statement added that this is expected to improve its citizens’ ability to benefit from the free movement provisions enshrined in the African Continental Free Trade Area (AfCFTA) Agreement.
Africa
The International Trade Centre (ITC) and the Organization of Women in International Trade (OWIT) in Nairobi, in collaboration with OWIT Nigeria and OWIT Zimbabwe, are partnering to support African women entrepreneurs to participate in intra-regional trade. Speaking during the Africa Women Trade Conference organized by the two organizations on 25 and 26 November, Aissatou Diallo, ITC Senior Coordinator for the AfCFTA and Least Developed Countries, said that trade under the AfCFTA would drive larger gains in earning for businesswomen. Themed ‘Empowering Women in Intra-Africa Trade’, the conference encourages women entrepreneurs to take advantage of the AfCFTA’s enormous potential for trade within its regional and continental markets. It further focuses on Africa’s investment opportunities while creating an opportunity for women entrepreneurs and business leaders to meet with investors.
The AfCFTA will improve Africa’s ability to respond to future pandemics (Modern Ghana)
Global trade has suffered since the beginning of the Covid-19 pandemic. The continent has found itself in a difficult position due to its heavy reliance on trade with the rest of the world. In total, about 53 per cent of African imports come from countries where Covid-19 has had a significant impact.
The African Union Development Agency has estimated that the pandemic will cause more than $101 billion of export earning losses in Africa, with oil-producing countries losing an estimated $65 billion. This severe impact on the economy makes Africa’s oil producers the major losers. For example, crude oil sales account for more than 50% of government revenues and over 90% of foreign exchange in Nigeria. Crude oil makes up 90% of Angola’s earnings and 73% of South Sudan’s.
Faced with the devastating pandemic, countries and trading blocs have been forced to prioritise their citizens’ needs. Aid to Africa has also decreased as a result of the economic impact of Covid-19 and rising nationalism. African countries should work together to find answers for their current problems.
The fifth edition of the SADC Industrialisation Week (SIW) has fulfilled its purpose of providing a platform for sharing ideas on unpacking the regional industrialisation agenda, Honourable Minister of Forestry and Natural Resources for the Republic of Malawi, Ms Nancy Tembo, said. She said the Region has great potential to substantially increase the manufacturing sector’s contribution to Gross Domestic Product (GDP) with proper implementation of the SADC Industrialisation Strategy and Roadmap (2015-2063) to promote intra-regional trade.
In financing industrialisation, the cost of funding remains an issue for emerging and less experienced businesses and project owners. It is something that needs to be looked at to reduce the reliance on offshore capital investments;
For mining, it was observed that Illicit Financial Flows (IFFs) are negatively impacting Africa’s development, particularly investment in the mining industry. More robust collaboration and cooperation between governments and the private sector is critical in ensuring that any research conducted on IFFs is verified and tested by all relevant state institutions and the private sector;
In the area of-processing; agriculture, fisheries and aquaculture, value addition and agro-processing value chains are vital contributors to the development of agro-industries in the Region that are needed to enhance intra-regional and export trade, industrialise local economies, grow rural areas enterprises, create new job opportunities, and address rural poverty;
For trade and trade facilitation, it was noted that the SADC Non-Tariff Barriers (NTBs) and Trade Facilitation Working Group will pave the way for a sustainable public-private dialogue on NTBs, which can improve the resolution of NTBs. This will align and harmonise regulatory tax policies in the SADC Region to attract Foreign Direct Investment (FDI).
In pharmaceuticals, the Support towards Industrialisation and the Productive Sectors in the SADC Region (SIPS) programme has successfully supported projects to manufacture Personal Protective Equipment (PPE). It has a high potential to scale into other areas (including COVID-19 treatment and ARVs) through upcoming calls for proposals. Harmonisation of medicine registration policies is a crucial enabler. The SADC Regulatory Forum should be supported to speed up registration and distribution of essential medicines and create a pathway for speedy registration of innovative medicines while respecting intellectual property rights. Member States could enhance technology transfer, joint ventures and licences by increasing the availability of trusted, experienced, and technically capable local partners.
Southern Africa to accelerate implementation of regional industrialization strategies & policies (UNECA)
Experts from Southern Africa convened in Livingstone to deliberate on accelerating the implementation of regional industrialization strategies and policies in Southern Africa through domestication. ECA Sub-Region Office for Southern Africa (SRO-SA) brought together 30 experts from regional stakeholders including representatives of government ministries and parastatals, the private sector, academia and Civil Society Organisations to review the study entitled, ‘‘Accelerating the Implementation of the Common Market for Eastern and Southern Africa (COMESA) and the Southern Africa Development Community (SADC) Industrial Policies and Strategies through domestication”. The workshop discussed the critical factors required to facilitate domestication and implementation of regional industrial policy and industrialization frameworks at the national level.
The ECA Office for North Africa held on 24-25 November in Marrakech (Morocco) its 36th meeting of the Intergovernmental Committee of Senior Officials and Experts for North Africa (ICSOE) on “Strengthening regional integration in North Africa,” and an Expert group meeting on “Unlocking the Potential of Regional Value Chains in North Africa: Focus on the Pharmaceutical and Digital Finance Sectors.”
Participants agreed that the ECA office for North Africa 2022 work programme should focus on employment creation and skills through economic diversification, structural transformation, as well as regional integration and global value chains. The office will also continue with its important project on economic impacts of migration, with a focus on building countries’ capacity to collect migration data and recognize migrants’ skills and qualifications.
This year’s meeting took place as North Africa is facing both major, multiple challenges and opportunities. Key current challenges include building forward better and greener from COVID-19 while turning the tide on persistently high youth unemployment. At the same time, the AfCFTA and accelerated digitalization are presenting the sub-region’s youth with new opportunities to enter higher-skilled and more productive, export-oriented sectors.
“To help our member countries put their economies on a high and sustainable growth path, we must look at the doors the pandemic has opened: COVID-19 has raised countries’ interest in productive opportunities closer to home. It has also given pharmaceutical industries a strategic dimension they didn’t have before and underscored Africa’s need to find alternative sources of financing for their development and health security needs. The pandemic has also accelerated several megatrends, including digitalization. African countries can build forward better, by investing in greener, more resilient sectors and inclusive economies”, said Zuzana Brixiova Schwidrowski, Director of the ECA Office for North Africa in an opening statement given on behalf of ECA Executive Secretary Vera Songwe.
Egypt makes 10 messages during inauguration of COMESA summit (Egypt Independent)
Egyptian President Abdel Fattah al-Sisi reviewed the COMESA summit’s medium-term strategic action plan for the period 2021-2025, which aims to deepen economic integration, regional integration and development among the countries of the Common Market for Eastern and Southern Africa (COMESA). This strategy is in harmony with the African Continental Free Trade Zone Agreement, he said, which guarantees preferential trade among the group’s countries, aiming to establish a free trade zone between member states to develop into a customs union and then a common market.
A region in debt as top banks record $125m in bad loans (The East African)
East Africa’s top retail banks booked more than $125 million of bad loans in the nine months to September this year, as borrowers struggled to repay their loans following the expiry of a 12-month loan repayment relief programme for customers adversely impacted by the Covid-19 pandemic. This comes as regional banking regulators in Kenya, Tanzania and Rwanda have raised concern over the rise of bad loans, which is now threatening the financial sector. Last week, Rwanda’s central bank reinstated regulatory requirements for commercial banks to increase provisions on loans that had been suspended due to the pandemic to allow banks to continue lending. The reinstatement could affect loans to the private sector. Meanwhile, Bank of Tanzania (BoT) has introduced measures to address non-performing loans, which include zeroing in on individual bank employees who are directly responsible for issuing the loans.
The latest unaudited financial statements for regional lenders KCB, Equity and Co-operative banks show that the volume of gross non-performing loans (NPLs) rose eight percent to $1.81 billion, from $1.68 billion in the same period last year. Co-operative bank was the highest with over $80.6 million worth of loans turning sour during the period under review, followed by Equity Bank at $39.46 million and KCB at $10.26 million.
Agribusiness Is Africa’s Solution To Poverty (Peace FM Online)
The 6th edition of the annual meeting of the Africa Economic Zones Organization (AEZO) was held in Accra, Ghana on Thursday, November 25, 2021. The conference was organized under the theme “Connecting African Special Economic zones To Global Value Chains At The Era Of The African Free Trade Area (AfCFTA)” and held in partnership with the Ghana Free Zones Authority (GFZA) and the African Continental Free Trade Area Secretariat (AfCFTA) with the contribution of the United Nations Conference on Trade and Development (UNCTAD), United Nations Industrial Development Organization (UNIDO) and African Development Bank (AfDB).Speaking to the Senior Special Adviser to the President on industrialization, Professor. Oyebanji Oyelaran-Oyeyinka was optimistic that agribusiness will help in eradicating poverty in Africa. According to him, agriculture has the potential to contribute to a nation’s economy, saying “if agriculture will play its role as it’s supposed to be we need to raise the game by raising productivity, raising the skills of farmers into ecosystems and these are some of the objectives from us at African bank is championing”.
If we want to solve the poverty problem in African the solution is Agribusiness. We can achieve this by bringing farmers into the modernized ecosystem and also by raising their living standards and ensuring they achieve a better quality of life...Poor farmers are our big target,” he added.
Southern African Development Community (SADC) Ministers responsible for Environment, Natural Resources and Tourism have approved the Boundless Southern Africa Feasibility Study Report and the Roadmap for hosting the programme within regional structures. This came out of the Ministers’ Extraordinary Session held through video-conferencing on 23rd November 2021 to review progress in implementing the decisions the Ministers took at their ordinary virtual meeting on 18th June 2021, namely to deliberate on the Boundless Southern Africa Programme, and to be appraised on developments regarding the implementation of Decisions of SADC Council of Ministers regarding the winding-up of the Regional Tourism Organisation of Southern Africa (RETOSA).
The Boundless Southern Africa Feasibility Study addresses the role and sustainability of Boundless Southern Africa Programme to implement the SADC Tourism Programme 2020-2030. This is in order to adequately promote the development of tourism within the SADC Transfrontier Conservation Areas (TFCAs) to strengthen the conservation of natural resources, and simultaneously contribute to regional economic development, including the livelihoods of local communities.
Hon. Tembo said the SADC Tourism Programme 2020-2030 provides a pathway for a quick economic recovery process following the devastating effects of the COVID-19 pandemic. She said some of the preventive measures that countries took as one way of containing the pandemic led to closure and slowdown of tourism businesses and those businesses depending on tourism, which resulted in many job losses and livelihoods.
EAC bans dumping of electronic waste, calls for recycling (The East African)
A ban on the dumping of electronic waste in the region received a boost after the East African Community (EAC) prohibited the importation of cathode rays tubes (CRTs) and standalone used computer monitors with effect from July 1, 2022. The East African Community Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) held a meeting in Arusha on November 12, chaired by Kenya’s Cabinet Secretary in charge of Trade and Industrialisation Betty Maina, in which the partner states — Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan — agreed unanimously to ban dumping of e-waste in the region. The decision follows concerns that firms in developed countries were exporting these items to developing countries, purportedly as refurbished and good for use, while instead were dumping them so that they don’t have to deal with the e-waste when they become obsolete. Many African countries have non-existent or unsafe recycling practices, which endanger both people’s health and the environment.
African Union rejects travel bans amid new Covid-19 variant (The East African)
The African Union on Saturday cautioned countries across the world against imposing quick travel bans on travellers from the continent, in the wake of a new variant of the Covid-19 virus said to be more infectious. Dr John Nkengasong, the Director of the Africa Centres for Disease Control and Prevention (Africa CDC) said the history of the pandemic had indicated travel bans served little purpose in managing the spread of the virus. Instead, the continental body was encouraging more surveillance and data sharing between countries, in addition to increased vaccination of the “high-risk” populations. “Africa CDC strongly discourages the imposition of travel ban for people originating from countries that have reported this variant. In fact, over the duration of this pandemic, we have observed that imposing bans on travellers from countries where a new variant is reported has not yielded a meaningful outcome,” Nkengasong said in a statement.
European Green Deal will leave Africa hungrier, poorer – experts warn (Nation)
Experts in the East African region have warned EAC states to go slow on the EGD proposal, that a mandated reduction in agricultural inputs by farmers could reduce global agricultural output up to 11 per cent, while the tightening of global supplies could increase food prices by as much as 89 per cent. Further, measures to reduce agricultural inputs could increase the number of food-insecure people in the world’s most vulnerable regions, majorly in Africa, by 22 million to 185 million.
“The EGD strategies are likely to erode an already small tool box for African farmers by between 50 per cent and 60 per cent due to increased farming costs, reduced crop yields thus a need to increase food production up to 56 per cent by 2050,” shared Stella Simiyu, director regulatory affairs and stakeholder relations CropLife Africa Middle East. The move will also make farmers like Mr Mwakame less competitive and tighten export windows due to stringent export standards.
Several impact assessment studies on the EGD conclude that there are significant impacts, trade-offs and blind spots regarding the Green Deal that urgently need to be considered by policymakers in the EU and Africa. The EU Joint Research Centre (JRC) study predicts that the expected decrease of between 40 and 60 per cent of greenhouse gas emissions from European agriculture stemming from the implementation of farm to fork targets will lead to outsourcing European agricultural production, including its emissions to third world countries. The Kiel University study projects that Europe could become a net food importer, in direct contradiction with the open strategic autonomy promoted by the European Commission during the COVID crisis.
We need to be on the table to be able to say what is good, workable and sustainable for us. We may need to have our own Green Deal, but who is going to fund Africa’s Green Deal? Do we have the capacity as governments to fund our own Green Deal?” Mr Ojepat posed.
The secret to a prosperous China-Africa relationship (ecns)
China and Africa have stood together through times of adversity and success, setting a strong example for the building of a global community with a shared future. The 8th Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) will convene despite disruptions caused by the COVID-19 pandemic, showing the great significance that Africa and China attach to furthering their ties, as well as a deep mutual trust that will create more opportunities for the two traditional partners to collaborate.
The secret to fruitful China-Africa cooperation has been revealed by a white paper, titled “China and Africa in the New Era: A Partnership of Equals,” released by China’s State Council Information Office on Friday.
Economy-wise, statistics show China has been Africa’s largest trading partner for the 12 years since 2009. China-Africa trade accounted for more than 21 percent of Africa’s total external trade in 2020. China has increased its imports of non-resource products, and offered zero-tariff treatment to 97
A new US policy on Africa: Genuine reset or same old rhetoric? (Observer Research Foundation)
Last week, United States Secretary of State, Antony Blinken, during his three nation—Kenya, Nigeria, and Senegal—sojourn to sub-Saharan Africa unveiled a new United States (US) policy towards the continent. If Blinken’s speech in Nigeria is anything to go by, there’s now a noticeable and discernible shift from the previous Trump administration in how the US views and frames its engagement with Africa. Blinken made a conscious effort to downplay China in Washington’s new policy approach. He insisted on facilitating Africa’s choices and partnerships that are mutually beneficial, rather than engaging in a zero-sum policy of competing with China in Africa.
Under the new policy, the US is expected to tailor its engagement around five key areas: Dealing with the COVID-19 pandemic, enhancing trade, promoting and revitalising democracy, combatting climate change, and ensuring peace and stability with a focus on equal partnerships. This could not have come at a more appropriate time, since trade between China and Africa increased by 40.5 percent in the first seven months of 2021, valued at US $139.1 billion. In 2020, Chinese Foreign Direct Investment (FDI) in Africa reached US $4.2 billion, despite apprehensions over a possible reduction in ‘big-ticket’ investments due to the uncertainties of the COVID-19 pandemic. China has consistently proven that it is the most consequential player in Africa. Now that the US is also determined to revamp and rebuild its engagement with the continent, it is amply clear that Africa cannot be ignored.
International
OECD, WTO issue joint study on economic benefits of new services domestic regulation deal (WTO)
Entitled “Services domestic regulation in the WTO: Cutting red tape, slashing trade costs, and facilitating services trade”, the study looks at how improved regulatory systems for licensing and authorizing services suppliers would lead to savings. The 67 WTO members taking part in this initiative represent 90 per cent of world services trade. They are aiming for a successful outcome to be announced at the 12th Ministerial Conference (MC12), which begins on 30 November. The final deal will be applied on a “most-favoured nation” basis, meaning that it will benefit all WTO members.
The study finds that implementing the outcome will: improve the business climate; lower trade costs and lead to other trade benefits; facilitate services trade; and generate widespread gains beyond the participants
Members conclude milestone review of Trade Facilitation Agreement (WTO)
“Completing the review is an important milestone for the Trade Facilitation Committee. Members have worked intensely over the past six months to look back at the significant progress made over the past four years, while also recognizing the implementation challenges faced by members, particularly least-developed countries (LDCs),” the Committee Chair, Mr Christopher O’Toole (Canada), said. “Importantly, the Committee also looked to the future, identifying a number of means by which it can strengthen its work to support full implementation of the TFA. As a result, the Committee has identified a good basis for a future work programme,” he said.
The TFA seeks to expedite the movement, release, and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area. Under the Agreement, members committed to review the operation and implementation of the TFA four years from its entry into force, which was on 22 February 2017, and periodically thereafter.
The TFA is the first WTO agreement in which developing and LDC members can determine their own implementation schedules, with progress in implementation explicitly linked to technical and financial capacity. Developed members were required to implement all provisions of the TFA from its entry into force.
General Council decides to postpone MC12 indefinitely (WTO)
The 12th Ministerial Conference (MC12) was due to start on 30 November and run until 3 December, but the announcement of travel restrictions and quarantine requirements in Switzerland and many other European countries led General Council Chair Amb. Dacio Castillo (Honduras) to call an emergency meeting of all WTO members to inform them of the situation. “Given these unfortunate developments and the uncertainty that they cause, we see no alternative but to propose to postpone the Ministerial Conference and reconvene it as soon as possible when conditions allow,” Amb. Castillo told the General Council. “I trust that you will fully appreciate the seriousness of the situation.”
Vaccine squabble tests global trade ties as WTO meeting postponed (POLITICO)
Failure to reach an agreement on vaccine patents or other longstanding disputes would raise more doubt about the purpose of the WTO as countries increasingly make two-way or regional deals. It would also raise questions about whether the former Nigerian finance minister, after just nine months on the job, is the right person to lead the organization out of its morass.
At stake “is the future of multilateral trading system, whether it’s going to increase its service to the world’s economy,” former WTO Deputy Director General Alan Wolff said this month. “If they don’t have an agreement, it’s just another black mark.”
Since taking over as head of WTO in February, Okonjo-Iweala has focused much of her energy on resolving the patent dispute. The fight pits a group of more than 100 developing countries led by South Africa and India, which favor the broadest possible waiver, against the EU, the U.K. and Switzerland, which argue that logistical bottlenecks rather than patent protections are the biggest impediments to boosting vaccine availability.
Okonjo-Iweala said she planned to go ahead with a series of previously scheduled meetings this weekend. Those will involve ambassadors to the WTO stationed in Geneva and visiting negotiators who had arrived early.
Developing countries need more support to cope with new global sustainability reporting standards (UNCTAD)
UNCTAD’s Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) has called for more technical assistance to developing countries to enable them to cope with new global sustainability reporting standards. The experts made the call at ISAR’s 38th meeting held from 9 to 12 November, saying more technical assistance would empower countries with weaker accounting and reporting infrastructure to enable companies to better report their contributions towards the UN Sustainable Development Goals (SDGs).
“Sustainability reporting is a basis for sustainable investment,” UNCTAD Secretary-General Rebeca Grynspan said. “It is fundamental to allow financiers to make sound investment decisions.”
UNCTAD’s director of investment and enterprise, James Zhan, said the organization’s work on sustainability reporting was progressing so rapidly, hence ISAR’s strategic focus would gradually shift from “indicator-development work” towards “dissemination”. He said this would involve “supporting developing economies and countries with weaker accounting and reporting infrastructure to cope with global developments.”
Better roads increase domestic trade and improve regional economies (VOX, CEPR Policy Portal)
High transport costs can cause spatial disparities in economic activity by impeding market access in isolated regions, both in terms of firms’ ability to sell goods and in terms of their ability to buy the required inputs. Investment in transport infrastructure can impact regional inequality and improve growth prospects by facilitating trade. But how large are these gains, especially when there are various types or stages of investments that are possible? The question is harder to answer than one might expect. Infrastructure projects tend to be expensive and long lasting, so governments may prioritise investments in regions already poised for growth. This tends to generate a positive association between infrastructure and income levels, not because the former causes the latter, but because of strategic selection.
High transport costs can cause spatial disparities in economic activity by impeding market access in isolated regions, both in terms of firms’ ability to sell goods and in terms of their ability to buy the required inputs. Investment in transport infrastructure can impact regional inequality and improve growth prospects by facilitating trade. But how large are these gains, especially when there are various types or stages of investments that are possible? The question is harder to answer than one might expect. Infrastructure projects tend to be expensive and long lasting, so governments may prioritise investments in regions already poised for growth. This tends to generate a positive association between infrastructure and income levels, not because the former causes the latter, but because of strategic selection.
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National
CSIR’s initial circular economy study shows potential to create economy-wide value (Engineering News)
The initial findings from the Council for Scientific and Industrial Research’s (CSIR’s) Science, Technology and Innovation for a Circular Economy (STI4CE) study shows that transitioning to a more circular economy has the potential to create value across all sectors of the economy. There are also opportunities to decouple development from resource consumption. “This will improve the local and global competitiveness of the South African manufacturing sector, improve food security through regenerative agriculture, create more sustainable, liveable cities, improve economic development through efficient mobility systems and decouple economic development from the demands placed on our energy and water systems, which are already under considerable strain in South Africa,” the CSIR reports.
SAA and Kenya Airways move forward towards a pan-African airline alliance (Aviacionline)
40Kenya Airways, Kenya’s flag carrier, jointly signed a Strategic Partnership Agreement with South African Airways (SAA) on November 25, concluding an important milestone to jointly launch a pan-African airline group by 2023. The partnership follows the Memorandum of Cooperation (MoC) that both companies signed 2 months ago in search of promoting the exchange of knowledge, expertise, innovation, digital technologies, and best practices between the 2 companies. The signing of this agreement will see both companies working together to expand passenger traffic, cargo opportunities, and overall trade, thereby leveraging the strengths of South Africa, Kenya, and Africa. The partnership is expected to improve the financial viability of both airlines. Customers will also benefit from more competitive pricing offers for the passenger and cargo segment.
Kenya Airways Chairman Michael Joseph, while speaking at the signing ceremony, said: «This cooperation is in line with Kenya Airways’ primary objective of contributing to the sustainable development of Africa and is based on mutual benefits. It will increase connectivity by increasing passenger traffic and cargo opportunities while improving the implementation of the African Continental Free Trade Area Agreement (AFCFTA). The geographical location of the two countries will make the Pan-African Airline Group attractive, creating the most formidable Airline Group that should leverage the strengths across South Africa, Kenya, and Africa.
Kenya Airways’ strategy for making African aviation sustainable (Quartz Africa)
Africa’s aviation industry is highly fragmented. The continent has hundreds of independent airlines, many of which are unprofitable and on the brink of collapse as they struggle to compete effectively with big global carriers. Further, the aviation business has been hit hard by the covid-19 pandemic. But airlines are trying to innovate and looking to consolidate to make the businesses sustainable. In September, Kenya Airways and South African Airways, two flag carrier airlines, entered an agreement to create a pan-African airline group. And earlier this year, Kenya Airways launched Fahari Aviation, a division to enhance innovation research, and development of unmanned aviation systems (UAS), including drones.
Allan Kilavuka, the CEO of Kenya Airways, said:
Right now there’s a problem because we have a backlog on the supply chain of goods and services particularly to and from Asia. You have heard of shortages of goods particularly electronic goods. There’s no capacity to move enough goods across the world. This is kind of a good problem for us because the problem is capacity.
The future of aviation, not just in Africa, globally, is when you consolidate. Because aviation is a very expensive venture, with very low margins. You need to create economies of scale, so that your unit costs, drop. But more importantly, you also want to make sure that you are creating a network that gives your customers or passengers many options. That way, then you attract a lot more people to the group. That’s what happens when you consolidate.
You look at your customers and you see, what kind of solutions can you provide to your customers, by giving them a variety of options, and also by accessing destinations that you’re not able to access if you did it alone.
Re-imagining the Kenyan economy in technicolour (Business Daily)
Kenya is, like the rest of the world, seeking to “build back better” in uncertain Covid-19 times. Yet, as is our wont, the transitional 2022 presidential election (because the other positions still don’t matter as much despite a new constitution) is now top of mind across business and the economy. On the one hand, you have putative and pronounced presidential candidates running around the country with financial goodies for the people. Finance — cash — is the operative word; the economy is a generality. The basic idea is that people don’t have cash because the economy is bad, and the economy is bad because people don’t have cash. That would be a great discussion to have with the Kenya Revenue Authority (KRA). On the other hand, President Uhuru Kenyatta is doubling down on delivering his economic legacy. He will be happy that the Big Four Agenda is here to stay. There will be mixed views about his infrastructure efforts, ranging from design to cost to utility, but it is unarguable that stuff is visible to the naked eye.
India imposes restrictions on Kenyan tea to protect its farmers (Business Daily)
India’s tea regulator has issued fresh rules to curb shipments of low-priced Kenyan tea into the Asian country to protect its farmers from loss of market, stoking fears of a trade spat between the two countries. The Tea Board of India (TBIA) issued circulars to tea stockists on reporting about the quantity and quality of imports from Kenya to rein in shipments. Indian farmers are complaining that cheaper Kenyan and Nepalese teas are being blended with local produce, and then sold on as tea of Indian origin to their disadvantage. The Indian tea regulator threatened to cancel licences of local importers if they are found flouting the new rules. “The board has taken the right decision to curb the entry of cheap teas to the country, which is being sold in the world markets as teas of Indian origin and thereby tarnishing the image of Indian tea,” Tea Board chairman P.K. Bezbaruah was quoted saying.
President Museveni heads to Tanzania for oil pipeline talks (The East African)
Uganda’s President Yoweri Museveni is expected in Tanzania at the weekend to attend an oil and gas meeting, and later hold bilateral talks with his Tanzanian counterpart Samia Suluhu Hassan. President Museveni, according to aides, will give a keynote speech during the private sector organised symposium that is set to discuss opportunities presented by the 1,445km East African Crude Oil Pipeline (EACOP) project. President Museveni’s deputy press secretary Farouk Kirunda said that the Ugandan leader will have a three-day working visit to Tanzania starting Saturday, where, together with President Suluhu, they will hold talks on the progress of the $3.5 billion EACOP project to be jointly constructed between the two countries, and which is expected to connect Uganda’s oil fields to Tanzania’s port of Tanga.
Dealers promise new vehicles at price of second-hand imports (Nation)
Kenyans will soon rely less on imported second-hand cars, with dealers in locally assembled vehicles promising to deliver new units for the same price as used imports. Simba Colt group managing director Naresh Leekha noted that since the beginning of this year, Kenyans have been excited about getting zero-mileage cars with a five-year warranty. “Kenyans have given us a good reception. We see a lot of uptake of locally assembled cars,” Mr Leekha told the Nation. “In the new-vehicle segment, we have got more than 35 per cent of the market and we are looking at growing to 65 per cent in this financial year. It was good that we had the blessings of President Uhuru Kenyatta during the official launch.”
AfDB pledges to support Kenya in raising finance for climate actions (Kenya Broadcasting Corporation)
The African Development Bank (AfDB) has pledged to support Kenya in raising finances to fight climate change that has led to drought, affecting 2.5 million people in 23 of its 47 counties. The country is already spending eight per cent of its GDP every five years on the impacts of drought alone.
Speaking during the 7th Annual Devolution Conference in Makueni, the AfDB’s Vice President for Power, Energy, Climate and Green Growth, Dr Kevin Kariuki, said the bank will support Kenya in creating a favourable environment to mobilise climate finance for adaptation. “To support Kenya’s climate change adaptation, the bank will draw on its experience in implementing community resilience through projects such as the Small Town and Rural Water Supply Programme, implemented in Kitui, Siaya, Bondo, Othaya, Mukurueini and Maua, between 2011 and 2017, which have achieved great impact,” said Dr Kariuki.
Zambia fit for developing country status (Zambia Daily Mail)
FOR the first time, Zambia is eligible to graduate from the category of a least developed country (LDC) after meeting two key indicators that show the country’s capacity to deal with structural challenges and vulnerabilities.
According to the 2021 United Nations Conference on Trade and Development (UNCTAD) report released yesterday, the country has met the criteria for graduating to the category of developing countries. Zambia was listed as a LDC on the United Nations (UN) classification index in 1991. The classification is reviewed by the Committee for Development every three years.
AfCFTA has the tendency to damage local young entrepreneurs – Kofi Amoah (GhanaWeb)
Ghanaian business mogul, Dr Kofi Amoah has averred that the implementation of the African Continental Free Trade Area (AfCFTA) will have dire consequences on young entrepreneurs. He said the decision of government to open Ghana’s market to a free trade agreement needs to be reviewed. According to Dr Kofi Amoah, this issue needs to be addressed urgently since it borders on the growth of the local economy.
Develop measures to increase domestic revenue - President tells NDPC members (Ghanaian Times)
President Nana Addo Dankwa Akufo-Addo has urged the newly inaugurated members of the National Development Planning Commission (NDPC) to help develop measures to increase domestic revenue mobilisation for development. President Akufo-Addo inaugurated the board at the Jubilee House in Accra on Tuesday evening and urged the members to “identify the ways and means to help enhance significantly the country’s capacity for domestic revenue mobilisation to realise her development potential and thereby create opportunities for the vibrant and dynamic youth and to improve the livelihoods of all Ghanaians.
“Ghana’s tax-to-GDP ratio of 14.3 per cent compares unfavourably with our peers in ECOWAS and the world over. Ghana as the second largest economy in ECOWAS should not have one of the lowest tax-to-GDP ratios in the community,” he said. “The average tax-to-GDP ratio in West Africa stands at 18 per cent and indeed, the recommended ratio for ECOWAS member states is a minimum of 20 per cent,” the President added. “The average for OECD (Organisation for Economic Co-operation and Development) countries is 34 per cent. It is thus no surprise that the developed nations of the OECD can readily find the means to fund their own development, particularly, their infrastructure development, whereas we are constantly struggling to do the same. The NDPC should have this issue as a special focus,” President Akufo-Addo said.
2021 Ghana-EU political dialogue meeting held in Accra (News Ghana)
A statement issued by the Ministry of Foreign Affairs and Regional Integration, copied to the Ghana News Agency, said the meeting was chaired on the Ghana side by Vice President Dr Mahamudu Bawumia and on the EU side by the Head of its Delegation to Ghana, Mr Irchad Razaaly. It said as Ghana’s largest multilateral development and trade partner, the EU and its Member States currently financed about half of all Official Development Assistance (ODA) received by the Ghanaian Government. The statement noted that formalised cooperation between Ghana and the EU started after the first Lome Convention in 1975 and that the two parties had enjoyed fruitful economic and political exchanges, which had improved over the years.
NDPC boss calls for a robust rural economy for AfCFTA (GhanaWeb)
Director-General of the National Development Planning Commission (NDPC), Dr. Kodjo Mensah-Abrampa, has called on Metropolitan, Municipal and District Assemblies (MMDAs) to build sustainable businesses at the local level to enable them to participate fully in the single continental market. “If you establish a process and it doesn’t resonate with the districts it can never be implemented. AfCFTA is important because it brings together several national programs, and we’ll need to develop a process where we can situate all of these national initiatives at the district levels to enhance implementation and leverage that to take advantage of the single market,” he said in an interview with Single African Market.
To be able to achieve this, he said there must be a conscious effort to build a sustainable rural economy that is underpinned by the productivity of small and medium enterprises and the growth of the rural private sector.
Maritime union calls for unbundling of e-Call up system, to reduce extortion (Nairametrics)
The Council of Maritime Transport Union and Association (COMTUA) urged the Nigerian Ports Authority (NPA) to unbundle its E-call up System ( ETo), to help reduce extortion in Nigeria’s ports. This was disclosed by the outgoing President of the association, Mr Thompson Olaleye, on Thursday during the maiden edition of the 2021 Delegate Convention of COMTUA, in Lagos, themed “Resolving the Challenges of Cargoes and Haulage Movements in Nigeria for Effective Domestication of the African Continental Free Trade Agreement (AfCFTA) and Promoting the Ease of Doing Business in the Continent.”
According to the News Agency of Nigeria, Olaleye said that the high cases of extortion should be a catalyst for the unbundling of the system.
Investors, partners rally behind initiative to build cathode precursor plant in the DRC (UNECA)
As the global transition towards renewable energy and carbon neutrality spurs demand for electric vehicles to replace fossil fuel engines, the Democratic Republic of Congo (DRC) has embarked on a project to build a cathode precursor plant. This will enable the country to harness its mineral resource wealth to sustainably commence low-emissions-production of battery precursors an input of lithium-ion batteries, used in electric vehicles, as explained by Vera Songwe, UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA): “The DRC is at the heart of the battery value chain, as it is home to about 70% of world’s cobalt reserves. The country’s mining sector currently accounts for 98% of exports, 18% of GDP, and 11% of jobs. If the DRC captures 20% of the market share for battery production, it will add around US$54 billion to its income and raise its GDP tremendously.”
Tunisia has lion’s share of intra-regional pharmaceutical exports (African Manager)
Tunisia has the lion’s share, 44% of intra-regional exports of pharmaceuticals in North Africa, according to a study on “the potential for promoting regional value chains: a mapping exercise on the pharmaceutical sector”, presented Thursday in Marrakech, Morocco. Morocco ranks second with 40% of these intra-regional exports, Egypt 13% and Algeria 2.3%.
The study was presented by adviser to the Economic Commission for Africa-North Africa, Patricia AUGIER, at the expert meeting on “Unlocking the Potential of Regional Value Chains in North Africa: Focus on the Pharmaceutical and Digital Finance Sectors” held on November 24 and 25 by the ECA Subregional Office in North Africa.
Africa
Intra-Regional Trade Potential a Key Focus in New Report (Investors King)
A new focus report, produced by Oxford Business Group (OBG) in partnership with the African Economic Zones Organisation (AEZO), shines a spotlight on the continent’s rapidly developing industrial sector, which is poised to become a key driver of broader economic growth as regional integration increases. Titled “Economic Zones in Africa – Focus Report”, the report was launched at the AEZO’s 6th Annual Meeting II, which took place on November 25 at the African Continental Free Trade Area (AfCFTA) Secretariat office in Ghana, with participants also able to attend remotely. The meeting was held under the banner “Connecting African Special Economic Zones (SEZs) to Global Value Chains at the era of the AfCFTA” and explored a range of topical issues relating to SEZs, from their potential to boost trade to the impact of
Covid-19 on the continent’s supply chains. The focus report examines the wealth of benefits that the AfCFTA is expected to deliver to both Africa’s economic zones and the businesses located in them, which range from greater market access to a reduction in trade barriers and lower production costs.
AU’s failure to ratify African passport protocol stalls free movement for citizens (The Africa Report)
One of the pillars of Agenda 2063 is the free movement of natural persons on the continent, which is partly predicated on an African passport. However, for many Africans, free movement remains a dream. Dlamini-Zuma made the remarks at the recently concluded Intra-African Trade Fair (IATF) 2021 in Durban, where a common observation was the lack of ease of travel for Africans on their own continent.
Igad projects to be completed by 2024 - Raila (The Star, Kenya)
Most projects under IGAD will be completed by 2024, African Union High Representative for Infrastructure Development Raila Odinga has said. He made the announcement on Tuesday when he opened the Development Partners Roundtable on IGAD Regional Infrastructure in Nairobi.
It aims to secure support for regional infrastructure to promote economic and integration as it offers unrivalled opportunities for the development partners to exchange views and network among governments and other stakeholders. “The IGAD Infrastructure Master plan has highlighted well the Short-Term priority projects. There are 61 projects in transport, nine projects in Energy, 14 projects in ICT, and five projects in trans-boundary waterways,” Raila said.
EAC launches media tourism campaign set to stimulate intra-regional travel (EAC)
The East African Community (EAC) has today launched the EAC Regional and Domestic Tourism Media Campaign set to publicize national and regional tourism products and services, in a move aiming at stimulating intra-regional travel. The campaign dubbed, ‘Tembea Nyumbani’, seeks to entice East Africans to travel in their specific countries and around the region, in an effort to revive domestic and regional tourism across the region, amid the pandemic.
Tourism contributes significantly to the economies of EAC Partner States and pre-pandemic, contributed 10% of Gross Domestic Product (GDP), 17% export earnings and 7% in jobs creation. The COVID-19 pandemic saw the sector affected negatively with international tourism arrivals in East Africa dropping by about 67.7%, to an estimated 2.25 million arrivals in 2020 compared to 6.98 million in 2019.
Transforming Africa’s agrifood systems requires coordinated policies across sectors (Mirage News)
To make them more sustainable, the transformation of agrifood systems across Africa needs a “cross-sectoral, holistic, coherent and coordinated policy environment,” QU Dongyu, Director-General of the Food and Agriculture Organization (FAO) said today at a high-level African Union (AU) event. The Comprehensive Africa Agriculture Development Programme Partnership Platform (CADP PP) is the AU’s main platform for agricultural policy dialogue, lessons-sharing and accountability. This year’s CAADP PP meeting, taking place over three days under the theme ‘Ending hunger in Africa by 2025 through resilient food systems’, brought together representatives from the African Union Commission, Ministers from the 55 AU Member States, and partners.
During his participation at the High Level Partners Panel event on Friday, the FAO Director-General noted that this is an “exciting time for Africa”. The discussion focused on how to strengthen institutions and increase investments to accelerate agriculture transformation and streamline efforts towards building resilient food systems aimed at ending to hunger on the continent.
Qu emphasized three key ways of accelerating change for agricultural transformation in Africa: increasing agricultural productivity; building resilience by addressing water and climate related challenges in agriculture; and increasing the use of data and digitalisation.
ECOWAS Commission presents 2022 budget to AFC (P. M. News)
The Economic Community of West African States (ECOWAS) Commission on Thursday presented its 2022 budget before the Administration and Finance Commissioner. Mrs Finda Koroma, the Vice President of ECOWAS, made the presentation during the 30th Ordinary Session of its Administration. According to Koroma, the Community has also come very close to adopting a common vision, namely the ECOWAS Vision 2050, that will guide our growth in the next 30 years.
Koroma explained that the development of Vision 2050 had been inclusive and participatory, adding, she could not but express her sincere appreciation to all AFC members for their support to the process.
CEMAC: CFA franc and China are key factors to attract infrastructure investments, says Moody’s (Business in Cameroon)
China and the fixed party between CFA Franc and the Euro are key elements to attract private investors for infrastructure projects in the CEMAC region. The analysis is presented by U.S. rating agency Moody’s in a recent document. “CEMAC member countries belong to the Franc zone that applies a fixed parity between the CFAF and the euro. This helps them reduce external vulnerabilities and absorb the shocks created by their high exposure to extractive industries by keeping inflation below 3 per cent. The stability of the currency is also likely to reduce investor concerns. In the energy sector, strong power purchase agreements (PPAs) in a stable currency can help secure financing,” the analysis reads. As far as China is concerned, the document explains that it is a major investor in infrastructure projects in Central Africa.
Chinese products enjoy popularity boom in Africa as Black Friday nears (China Economic Net)
Chinese products have seen increasing popularity on e-commerce platforms in Africa during this year’s Black Friday shopping season that started early November. Jumia is a major African e-commerce platform with operations in 11 African countries and some 7 million active users as of November. Jason Cheng, general manager of Jumia Global, said that more than 2,000 active Chinese vendors have joined the platform, which is now home to more than 14 million Chinese products. “Chinese products, especially mobile phone devices, clothing items and household appliances, are gaining more popularity among African buyers,” Cheng said.
Full Text: China and Africa in the New Era: A Partnership of Equals (ecns)
China and Africa have seen economic and trade cooperation expanding rapidly in scale and extent. The 10 major cooperation plans and the eight major initiatives adopted at the 2015 FOCAC Johannesburg Summit and the 2018 FOCAC Beijing Summit raised China-Africa economic and trade cooperation to a new level.
China has been Africa’s largest trading partner for the 12 years since 2009. The proportion of Africa’s trade with China in the continent’s total external trade has continued to rise. In 2020, the figure exceeded 21 percent. The structure of China-Africa trade is improving. There has been a marked increase in technology in China’s exports to Africa, with the export of mechanical and electrical products and high-tech products now accounting for more than 50 percent of the total. China has increased its imports of non-resource products from Africa, and offered zero-tariff treatment to 97 percent of taxable items exported to China by the 33 least-developed countries in Africa, with the goal of helping more African agricultural and manufactured goods gain access to the Chinese market. China’s imports in services from Africa have been growing at an average annual rate of 20 percent since 2017, creating close to 400,000 jobs for the continent every year. In recent years, China’s imports of agricultural products from Africa have also risen, and China has emerged as the second largest destination for Africa’s agricultural exports. China and Africa have seen booming trade in new business models including cross-border e-commerce. Cooperation under the Silk Road E-commerce initiative has advanced. China has built a mechanism for e-commerce cooperation with Rwanda, and Chinese businesses have been active in investing in overseas order fulfillment centers. High-quality and special products from Africa are now directly available to the Chinese market via e-commerce platforms. The China-Mauritius free trade agreement (FTA), which became effective on January 1 2021, was the first FTA between China and an African country. It has injected new vitality into China-Africa economic and trade cooperation.
Is sovereign debt impeding Africa’s COVID-19 recovery? (Chatham House)
Africans realized early on in the pandemic there was a tough period ahead – repeating the long pattern of Africa feeling the worst impacts of global dynamics.
Although Africa is the least indebted region when judged against GDP or per capita, it is the most affected by sovereign debt pressure, it also contributes the least greenhouse emissions but is the most affected by climate change. So, the sad paradox of Africa being the least infected by COVID-19 but most damaged by its impact is no surprise. The pandemic accelerated the unequal treatment of Africa, driven by the rules and systems of global economic governance. It exposed the practical implications of inequality – notably differences in state capacity to limit the socio-economic impact of lockdowns – uncovered the hyper-dependence of critical value chains, particularly to China, and revealed both the vulnerabilities of the international financing system and the limits on its coordination.
African countries find it difficult to access concessional finance despite the repeated promises of support to the MDGs, SDGs, and now climate transition because punitive commercial terms drive them to look for alternatives which avoid the iron rules of the credit rating agencies – and China has been by far the most sizable source.
COVID-19 has reduced fiscal space and made debt servicing more difficult, and needs are rising against public revenues constrained by low growth – the IMF predicts only 3.7 per cent growth for sub-Saharan Africa and that per capita incomes will remain 5.5 per cent below pre-pandemic levels.
Germany’s new Africa policy holds few surprises (Deutsche Welle)
The word “Africa” only appears four times in the coalition deal unveiled this week by the center-left Social Democrats (SPD), the Greens, and the business-focused Free Democrats (FDP), which will form Germany’s next government. That’s considerably less than 15 times “Africa” appeared in the coalition treaty between the previous government of Angela Merkel’s Christian Democratic Union (CDU) and the SPD, a combination known as the ‘grand coalition’ in Germany. “Africa policy is a marginal topic compared to the grand coalition’s agreement,” German-Africa expert Robert Kappel told DW.
That doesn’t mean that German-supported projects in Africa will come to a standstill, FDP development politician Christoph Hoffmann told DW. The incoming government also wants to ensure that other financing, particularly for climate change, boosts development and directly benefits the poor, Hoffmann said.
However, the new coalition agreement doesn’t specify the levels of funding that would be available for such measures. “The incoming government wants to envisage health in a more networked way. They also want to focus on strengthening basic education, something that Germany has relatively neglected in the past,” said Stephan Exo-Kreischer, director of the development policy organization One.
European Investment Bank Strengthens Engagement in Africa (Investors King)
On his first official visit to Africa since the start of the COVID-19 pandemic, European Investment Bank President Werner Hoyer and Vice President Thomas Östros today formally opened the EIB’s new Nairobi Hub with Kenyan Finance Minister, Cabinet Secretary Ukur Kanacho Yatani. Ahead of the launch of the EIB’s strengthened presence in Africa President Hoyer joined the CEO’s of Co-Operative Bank, Trade and Development Bank and International Housing Solutions to announce EUR 400 million of transformational new financing to help the Kenyan private sector recover from COVID, strengthen investment in fragile regions across East Africa and construct affordable and energy efficient housing. “At the European Investment Bank we are committed to enhancing the impact of our sustainable investment around the world in close cooperation with our global partners and through an increased local presence of our technical, environmental and financing experts. The EIB’s new Nairobi Hub opened today marks a milestone in the EU Bank’s engagement in Kenya and builds on our 56 years of operations in Africa. In the coming weeks the EIB will launch a dedicated development branch that will further intensify the EIB’s contribution to addressing global and local investment challenges,” said Werner Hoyer, President of the European Investment Bank.
Promoting trade with African countries is govt’s top priority: Razak (Dunya News)
Advisor to the Prime Minister on Commerce, Abdul Razak Dawood Thursday said the incumbent government was giving foremost priority to promote and expand business and trade with the African countries. He was addressing the Pakistan-Africa Trade Development Conference in Lahogs, Nigeria, according to a message received here on Thursday. The conference was very well attended by businessmen and officials from ECOWAS member states specially Nigeria. Abdul Razak Dawood declared that Africa was “a promising continent and land of opportunities”. He also called for closer economic ties with Africa to harness mutual benefits in trading activities with Pakistan.
International
At Latest WTO Ministerial Conference, Developing Countries Must be on Guard (The Wire)
With little time left for the World Trade Organisation’s 12th ministerial conference (MC12), the contours of what could happen at the four-day meeting are becoming clearer by the hour. “Ministers will hold the future of international trade in their hands when they meet in Geneva next week,” thundered Valdis Dombrovskis, the European Union trade commissioner, in a signed article published in Financial Times on Thursday. He says the “WTO’s rulebook is badly out of date” and “its ability to referee trade disputes is paralyzed and it is out of touch with current imperatives such as action on climate change and the expansion of digital trade”. Dombrovskis argues “intellectual property has to be part of the global response” for concluding a targeted waiver on compulsory licenses. He warns that “failure” to bring about reform and other fundamental changes in the WTO’s rulebook “would represent an unconscionable dereliction of duty to our citizens, our workers, and to hopes of a truly sustainable global recovery”.
What to expect from the WTO’s Ministerial Conference in December (WEF)
For the first time in four years, trade ministers from 164 member economies of the World Trade Organization (WTO), representing 98% of global trade, will meet for the WTO’s 12th Ministerial (MC12) in Geneva
The pressure is on for governments to agree on outcomes. Trade and investment are strong drivers of economic growth and development and have important roles in the global recovery. Merchandise trade has now stabilised at pre-pandemic levels and services trade continues to recover, though global supply chains are logjammed. Trade also played an important role during the pandemic, supporting development, production and distribution of personal protective equipment, vaccines and therapeutics.
Yet governments are divided on how to update trade rules to ensure they are relevant to current challenges, from COVID-19 and digital commerce to climate change, food security and fair competition. These differences play out in negotiations happening in different tracks. Some are “multilateral”, meaning all members are involved, and others are “plurilateral”, meaning some countries move forward based on common interests.
Draft agreement on fisheries subsidies submitted for ministers’ attention ahead of MC12 (WTO)
“The current draft reflects an honest attempt to find a balance in members’ positions and I think it is the most likely way we can build consensus, without undermining our sustainability objective, and successfully conclude more than 20 years of negotiations,” the chair said. “We are already one year overdue on the deadline to conclude WTO negotiations as contained in the United Nations Sustainable Development Goal (SDG) Target 14.6. By now, members’ different positions and interests have been thoroughly examined and debated. Moreover, the threat that harmful fishing subsidies pose to our oceans loom even larger every passing year, at the risk also to people’s livelihood and food security,” he said.
The TRIPS Agreement and Public Health: Understanding the Reform Agenda (Observer Research Foundation)
The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is one of the main annexes to the Marrakesh Agreement that established the World Trade Organization (WTO). Issues related to TRIPS enforcement began manifesting almost as soon as the agreement entered into force and reemerged amid health emergencies.
The COVID-19 pandemic renewed discussions on the agreement, even as the WTO is going through a crisis of legitimacy. The sheer scale and impact of COVID-19 have prompted governments to proactively seek the liberalisation of public health-related goods and services—albeit in the short term. Pandemic-induced lockdowns led to severe delays and supply chain congestion. This led to a disruption in the supply of medicines and other essential goods and services. Mode 2 services trade, consisting of services consumed abroad (as defined by the General Agreement on Trade in Services), was stopped altogether. Global solutions are thus being sought to ease any barriers to trade that interrupt the treatment and prevention of COVID-19. The TRIPS Agreement and its barriers in bureaucratic notification rules are just one policy under discussion. Others include the reduction of tariffs on medical goods.
Least developed countries cannot afford to strand their assets, given their development challenges (UNCTAD)
The 46 least developed countries (LDCs) are among the most vulnerable developing economies. Given the already high pressure for these countries to grow sustainably, reduce poverty and improve livelihoods for their people, they cannot afford to strand their assets. Stranded assets are those whose value has fallen so steeply they must be written off. The growing risk of stranded assets has implications on countries’ right to development or right to promote sustainable development, raising important questions of equity.
Many developing countries, particularly LDCs with significant fossil fuel resources, stand to lose the most from asset stranding and the adoption of renewables in the coming decades. According to 2015 research, Africa, where most of the LDCs are located, will have to leave 26%, 34% and 90% of gas, oil and coal reserves untouched, implying huge potential losses for these countries. The Carbon Tracker Initiative estimated that by 2030, new wind and solar energy will be cheaper than 96% of existing coal power, and that 42% of global coal capacity is currently unprofitable. A shrinking market for oil, natural gas, and coal would drain critical revenues that governments could spend on investments in health, education and infrastructure.
Whether these countries can diversify will depend on how long it takes and how much it costs to diversify away from high-risk carbon components into modern and complementary energy sectors, such as renewable energies, as well as other economic activities, while developing strong, resource-led value chains. This includes action to support the entry of LDCs into higher-value added manufacturing sectors, and technology-based services, among other industries, to reduce their dependence on one or a few natural resource-based sectors.
How Emerging Markets Will Benefit From New Carbon Trading Rules (OilPrice.com)
Amid pledges to phase out the use of coal and reduce methane emissions, world leaders at the recent UN Climate Change Conference (COP26) in Glasgow also agreed to reform global carbon markets and improve rules about carbon trading, seen as key tools in the transition towards decarbonisation. Carbon trading is a system whereby a government sets a limit on the amount of carbon that can be emitted, and then divides this amount into units. These units are allocated to different groups, industries and businesses, and can then be traded like any commodity. Proponents say that carbon trading will ultimately increase investment in environmentally friendly solutions, as the price placed on carbon makes fossil-fuel projects less competitive, while at the same time incentivising low-carbon energy sources such as wind and solar.
While a number of countries already have their own domestic emissions trading schemes in place – and have previously engaged in cross-border emissions trading – COP26 saw participants agree on a set of transparent, uniform rules for international emissions trading. This means that countries struggling to reduce emissions can partially meet their climate targets by purchasing offset credits from other countries which have successfully reduced their own emissions.
Int’l Trade Centre, Trade Ministry launch SheTrades Gambia Hub (The Point)
The SheTrades Hub offers a platform for women-owned businesses to benefit from a wide range of opportunities to expand their business and participate in trade through networking, learning opportunities, trade fairs and other business events. The launch reception, hosted by the United Kingdom High Commission in The Gambia, provided a platform to bring together different partners, including SheTrades entrepreneurs in fashion and agribusiness, value-chain enablers, market partners, the Gender Champions, government stakeholders and development partners. The reception and networking event also provided an opportunity for the entrepreneurs to showcase their products.
Speaking about the importance of the SheTrades Hub, H.E. Isatou Touray, Vice President of The Gambia stressed the government’s continued commitment in support of women economic empowerment: “Women-owned businesses need support to build their productive capacities and improve the quality of their products in other to connect to the markets. The SheTrades Gambia Hub is a critical initiative to tap the opportunities and activate the potential for women in business.”
Positioning apparel supply chains for success in the new Brexit era (just-style.com)
The thematic report titled ‘The Impact of Brexit on Apparel’ outlines the effects of the UK agreeing the terms of its departure from the EU bloc in December 2020, on the apparel sector. It says there has been a colossal impact on apparel supply chains, with UK-based retailers that have multi-country supply chains being more affected by Brexit than ones with “simpler UK-specific supply chains.” Challenges include trade tariffs, the movement of goods, changes in the labour market and general repercussions relating to consumer attitudes and buying behaviour across the region. Despite this, there are opportunities to be had for retailers in the UK, the report says, and areas such as M&A and potential new trade agreements should be explored.
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Auto industry welcomes the introduction of cleaner fuels in 2023 – Naamsa (Engineering News)
The Automotive Business Council says it welcomes the announcement of the next step in government’s clean fuels programme, set to become effective in September 2023. The Department Mineral Resources and Energy (DMRE) earlier this year gazetted the introduction of the next phase of the Clean Fuels Programme – CF2 – in South Africa.
SA’s biodiversity economy negatively affected by pandemic (SAnews)
South Africa’s biodiversity economy has been severely affected by the COVID-19 pandemic and this has had an impact on both domestic and international travel and tourism. “Prior to the COVID-19 pandemic, South Africa’s hunting industry generated R2 billion from foreign hunters and nearly eleven and a half billion rand from the domestic hunting market,” Minister of Forestry, Fisheries and the Environment, Barbara Creecy, said on Wednesday.
Kenya turns to South Africa in new railway deal (The East African)
Kenya has turned to South Africa to revamp its old railway network, as it seeks solutions within the continent to revamp its railroad networks. During a three-day state visit to Pretoria, Kenyan President Uhuru Kenyatta invited South African state-owned engineering company to revamp and upgrade its railway system.
In Pretoria, President Kenyatta was optimistic that Kenya partnering with Transnet Engineering Company, a manufacturer of railway components including freight wagons, locomotives and passenger coaches, will complete pending railway infrastructure project in the country. “The advanced engineering that is taking place here is a clear indication that Transnet can be a leading partner in working together with other African countries to restore their rail-stock. We look forward to working with you as we move towards fast tracking the restoration of our railway system,” said the Kenyan President.
Mr Kenyatta said the enhanced partnership in the improvement of railway systems would boost the economies of other countries in the East African Community and the Southern African Development Community.
The new rail and depot facilities have enabled significant movement of freight to Naivasha ICD which helps in quick evacuations by both road and rail to the final destination. There was need to connect the new inland depot with the meter gauge rail system to Malaba.
Kenya’s trade deficit up 38pc to Sh988bn (Business Daily)
Kenya’s trade deficit for nine months to September widened 38.57 due to a growing appetite for foreign manufactured goods, fuel and the soaring cost of imports following Covid-19 related supply chain disruptions. Trade data collated by the Kenya National Bureau of Statistics (KNBS) shows the gap between merchandise imports and exports climbed to Sh988.51 billion in the review period from Sh713.37 billion in the same period a year ago. The cost of imports has soared globally on persistent disruptions in global supply chains which have increased shipping expenses amid a resurgence in global oil prices for non-oil producing countries such as Kenya.
Belt and Road Initiative transforming Kenya’s development space: report (China.org.cn)
The Belt and Road Initiative (BRI), proposed by China eight years ago, is transforming Kenya’s development space in a profound way, said a report released Wednesday. According to the report by Africa Policy Institute, a pan-African think tank, since the BRI was proposed in 2013, China has supported modern infrastructure projects such as railways, roads, ports, dams, industries, digital connectivity which has injected vitality into Kenya’s growth. “In less than a decade, Kenya has a brand new 670-kilometer modern Standard Gauge Railway (SGR) connecting the port of Mombasa and the inland (dry) port of Naivasha,” said the report, titled “Shared prosperity: tracking the belt and road initiative in Kenya, 2018-2021.”
Africa: Commitments Signed to Build an Electric Battery Industry in the DRC (allAfrica.com)
The DRC-Africa Business Forum 2021 started with a bang on Wednesday, November 24 in the Congolese capital. A battery of firm commitments was signed for the development of a battery minerals industry in the Democratic Republic of Congo (DRC). The plan is for the project to start within the next two years. From the Democratic Republic of Congo (DRC), Africa will develop a regional industry of electric battery minerals and later electric vehicles and clean energy.
The signing sharpens the commitment of Bosh, a German multinational, whose main centers of activity are the manufacture of equipment for the automotive industry; the manufacture of power tools and household appliances; industrial and building techniques; packaging techniques.
To put words into action, stakeholders have agreed to create a Battery Council in the DRC in order to set up a special financial vehicle to facilitate private investments and the participation of the population. In addition, they committed to the development of the battery minerals industry in the DRC.
Ghana’s $2.6 billion Skytrain project isn’t happening after all (Quartz Africa)
On the opening day of the Africa Investment Forum in Johannesburg in 2019, Ghana signed an agreement with a South African company for a train project that would be built above the ground. The train tracks were to be 194 km long and transport nearly 400,000 passengers a year within Greater Accra, covering five routes. Skytrain, the project’s trademarked brand name, was to create 5,000 jobs throughout the construction period. None of that will happen anytime soon, according to Ghana’s minister of railway development John Peter Amewu, who said the project is too expensive and that the country has other needs. “I don’t see a sky train being done in the next 3 to 4 years let’s be very frank to ourselves,” Amewu said on Citi TV, a Ghanaian private broadcaster, quashing hopes that president Nana Akufo-Addo will deliver on one of the more ambitious projects in a masterplan for the Accra metro.
AfDB backing for new Ghana DFI (ICLG)
The African Development Bank has assisted in the establishment of a new institution aimed at growing Ghana’s small businesses. Ghana’s newly established development finance institution (DFI) has received USD 40 million in backing from the African Development Bank (AfDB). Earlier this month the AfDB board approved the grant to aid the capitalisation of The Development Bank Ghana (DBG).
The MSME sector has been identified by many Sub-Saharan countries as an important outlet for growing and diversified economies. AfDB country manager for Ghana, Eyerusalem Fasika said the new bank would help with the programme of recovery from the Covid-19 pandemic, through which the “expansion of access to finance for Ghanaian businesses” was “one of the key measures for economic revitalisation and transformation”.
Ghana Can Create Better Jobs through Accelerated Economic Transformation (World Bank)
Ghana has an opportunity in the coming decades, to accelerate economic transformation and create more and better jobs, after navigating through the heights of the pandemic. It can achieve this through fostering greater global integration, technological transformation, macroeconomic stability, and financial sector development, says the World Bank’s latest economic analysis for the country. The newly released Country Economic Memorandum, Ghana Rising - Accelerating Economic Transformation and Creating Higher Quality Jobs says Ghana has all it takes to continue being an economic development star, if it takes the right steps to nurture growth and job creation. “Ghana faces an acute challenge of generating more and better jobs and has a ‘missing middle’ of employment in mid productivity sectors”, notes Pierre Laporte, World Bank Country Director for Ghana, Liberia and Sierra Leone. “This is the time for Ghana to fill that ‘missing middle’ by cultivating export-oriented activities in both manufacturing and services and harnessing the transformative potential of trade; it faces an historic opportunity to do so with the Africa Free Trade Continental Area (AfCFTA).”
Gambia Secures $40 Million for an Inclusive, Resilient and Competitive Agriculture (World Bank)
The World Bank Board today approved $40 million from the International Development Association (IDA) to promote the development of inclusive, resilient, and competitive agricultural value chains, with specific focus on smallholder farmers and agribusinesses in The Gambia. The Gambia Inclusive and Resilient Agricultural Value Chain Development Project (GIRAV) will promote the development of key priority agricultural value chains with strong growth potential in the country through a combination of soft and hard investments aimed at strengthening production capacity, creating opportunities for complementary private sector-led investments in agribusiness, and development of agricultural small and medium enterprises (SMEs).”The Gambia can transition out of fragility only by addressing constraints on development in key economic sectors such as agriculture. The project will support the government efforts to boost commercial agriculture by investing in enabling agribusiness environment and mobilizing private investment through a dedicated matching grant mechanism,” said Feyi Boroffice, World Bank Resident Representative in The Gambia.
New Liberia Economic Update Highlights Recovery but Challenges to Expand Fiscal Space Remain (World Bank)
“The Government must be commended for making tough policy choices that have resulted in this positive turnaround in macroeconomic fundamentals, especially under a challenging COVID-19 environment,” said Dr. Khwima Nthara, World Bank Country Manager for Liberia. “The focus now should be on complementing the improved macroeconomic environment with critical structural and governance reforms that will help boost domestic and foreign private investment to create more jobs,” he added.
The World Bank has today launched the Second Edition of the annual Liberia Economic Update, “Finding Fiscal Space”. According to the report, economic growth is expected to recover to 3.6 percent in 2021, before rising gradually to an average of 5.2 percent over 2022–2025. In the near term, growth will be driven by the expected recovery in the mining sector underpinned by the recent uptick in commodity prices.
Africa
APRM partners AfCFTA secretariat to reposition intra-Africa trade (GhanaWeb)
Chief Executive Officer of the African Peer Review Mechanism (APRM) says the institution is ready to deploy its expertise in the area of trade as it seeks to supervise and monitor the compliance of state parties to the African Continental Free Trade Area (AfCFTA). The APRM boss said this is the first time APRM will be considering the area of trade on the continent that has been operating along with the themes of social-economic development, political, corporate, and economic governance. “APRM is a known governance mechanism for Africa but essentially the tools that we use are mostly monitoring and evaluation. Our specialty is in looking at the state of compliance of member states to their regional instruments and commitments. The AfCFTA is a treaty with all its binding requirements on its state parties and so our role will be to go to these states and find out how they comply with the provisions in the treaty,” he told Single African Market.
AfCFTA: Entrepreneurs seek better implementation of governments financial intervention (GhanaWeb)
Chief Executive Officer of the Ghana Chamber of Young Entrepreneurs (GCYE), Sherif Ghali, has welcomed the government’s 2022 budget proposal to allocate GHS1bn yearly towards advancing the interest of youth entrepreneurs in the country, calling for its effective implementation. “That’s one key thing if we want to solve our unemployment issue in Ghana; the government will need to promote youth entrepreneurs by setting up a support framework for them to be able to have access to finance,” he told Single African Market on the sidelines of the chamber’s three-day summit in Accra. He added: “It’s good that the government has finally come to understand and will be deliberate about supporting youth entrepreneurship in Ghana. We believe that setting up GHS 1bn annually for the next few years will be helpful to youth entrepreneurship.”
Launch of the Economic Development in Africa Report 2021 (UNCTAD)
The Economic Development in Africa Report, published annually, analyses major aspects of Africa’s development and policy issues of interest to African countries. It makes policy recommendations for action by African countries themselves and by the international community to overcome the development challenges that the continent faces. The 2021 edition, entitled “Reaping the Potential Benefits of the African Continental Free Trade Area for Inclusive Growth”, aims to equip African governments and development partners with knowledge on how the AfCFTA can be beneficial for inclusive growth and help realize Africa’s untapped export potential.
African countries urged to update trade laws to boost intra-Africa trade (GhanaWeb)
Chairman of the Parliamentary Select Committee on Trade, Industry and Tourism, Carlos Kingsley Ahenkorah, has urged all national bodies in Africa to move from outdated laws and policies to stay within modern trends of trade globally. According to him, doing that will reduce trade barriers on the continent. “Once our quality policies are in line with the Pan African Quality Policy and once, we use African standards, we will automatically reduce several barriers to trade and improve the ease of doing business on the continent. This will improve African industry and create wealth” he said. He said this at the 65th Council Meeting of the African Organization for Standardization on November 24, 2021, in Accra. Stressing on the importance of intra-African trade, Mr Ahenkorah indicated that poverty can be substantially eliminated if opportunities presented by the free trade agreement are properly leveraged.
The Southern African Development Community (SADC) Region has great potential to become a successful hub for exporters of finished goods if Micro Small and Medium Enterprises (MSME) and Multi-National Corporations (MNC) strongly work together. This view was expressed by various speakers at the SADC Industrialisation Week 2021 currently underway in Lilongwe, Republic of Malawi. They unanimously agreed during a break away session titled “Building linkages between MSMEs and Southern-led MNCs: the case of Southern Africa”, that if large manufacturing firms work together with the small firms in value addition, this can change the story of SADC being the net importer of processed foods to that of an exporter.
Mr Duncan Samikwa, Senior Programmes Officer in the Directorate of Food Agriculture and Natural Resources at SADC Secretariat said that the MNCs need to play an important role to ensure skills transfer and mentorship of MSMEs to improve the quality of their products to make them competitive for export. He said this can be realised if regional governments also capacitate agro-processors to produce improved quality products for exports. “The move to become net processed food export can work if governments attract and facilitate private sector investments in new agro-processing activities and ensure that investors function optimally,” said Mr Samikwa. He said provision of tax, cost-recovery incentives both in plants and equipment and other investment incentives are capable of changing the status quo for the better.
President Chakwera urges SADC countries to urgently industrialise (UNECA)
President of Malawi, His Excellency Dr. Lazarus McCarthy Chakwera yesterday issued a stark warning to SADC member States that if industrialization does not take root in the region, Southern Africa risks becoming a dumping ground for products from other nations and could fail to reap the benefits of the African Continental Free Trade Area (AfCFTA). President Chakwera made this pronouncement on Monday at the opening of the fifth SADC industrialisation week and exhibition, which was officially opened by the President of the Republic of Mozambique, His Excellency Filipe Nyusi.
The President further stated that the SADC Free Trade Area and the African Continental Free Trade Agreement (AfCFTA) will be meaningless and not achieve their intended purposes without industrialization relegating the sub-region to a real junk yard for the rest of the continent and the world.
How DR Congo joining EAC will bolster bloc’s potential (The New Times)
By DR Congo joining the East African Community (EAC), the six-member bloc will open the corridor from the Indian Ocean to the Atlantic Ocean, as well as North to South, hence expanding the economic potential of the region. This observation is made in an EAC document, which The New Times has seen, containing a summary of findings of the verification exercise launched by Congolese President Felix Tshisekedi on June 25, in Goma, the capital of the vast country’s North Kivu Province. At the time, the verification team earlier appointed by the EAC Council of Ministers had embarked on a 10 day trip there to establish DR Congo’s level of conformity with the criteria for admission of foreign states into the bloc in accordance with the EAC Treaty.
On the potential to strengthening integration within the region, the report also notes that DR Congo has bilateral and multilateral cooperation arrangements with regional countries in various areas that include customs, infrastructure, productive and social sectors.
COMMUNIQUÉ OF THE TWENTY FIRST SUMMIT OF THE COMESA AUTHORITY OF HEADS OF STATE AND GOVERNMENT
“Building Resilience Through Strategic Digital Economic Integration”. IN ATTENDANCE, Heads of Stat
New regional policy to boost trade in agricultural produce (Monitor)
The executive director of Association for Strengthening Agricultural Research in Eastern and Central Africa (Asareca), Mr Enock Warinda, said a new regional policy on agricultural and trade policy reforms will boost trade between member states. Mr Warinda made the remarks yesterday during the opening of a dialogue between the 11 member states on the new regional policy which, according to him, will be ready in a month. “The reforms will focus on the standardisation of some of the commodities traded within the eastern and central African region. We want to increase the trade, accessibility of the farmers and practitioners to the market both within and outside their countries,” he said.
Ghosts of Maputo deal haunt Tanzania agriculture as budgets fall (The Citizen)
In 2003 officials from Tanzania and several other African countries descended upon Maputo, the capital of Mozambique, with a determination to transform African agriculture. After a couple of days of reminiscing on how important farming was for Africa future in terms of food self-sufficiency the officials agreed to allocate at least 10 per cent of their national budgets to agriculture to start with, what came to be known as Maputo Declaration.
Political will, however, is one thing and action is another. About 18 years after the Maputo Declaration Tanzania has yet to allocate 10 per cent of its budget to agriculture. The UN’s Food and Agriculture Organization (FAO) earlier this year released an analysis report that showed that Tanzania and 13 other major agriculture producers have allocated only about 6 per cent per country of public financial resources. The failure to allocated 10 per cent is because of many priorities and limited financial resources. But it also shows that as it comes to agriculture it is easier to talk about it than to take concrete actions to improve it.
ECOWAS E-commerce Experts meet to discuss the development of the Regional E-commerce Strategy (ECOWAS)
The ECOWAS Commission and the United Nation Conference for Trade and Development (UNCTAD) convened a meeting on 18 November, 2021 with E-commerce focal points from the region to present the project on the development of the regional E-commerce strategy.
In his opening remarks Mr Kolawole SOFOLA, the Ag Director for Trade of the ECOWAS Commission speaking on behalf of the Commissioner for Trade, Customs and Free Movement Mr Tei KONZI, recalled the low level development of e-commerce in the region compared to the rest of the world. He highlighted the uneven development of e-commerce in the region as revealed by the E-trade readiness assessment conducted by UNCTAD in selected ECOWAS Member States based on seven policies areas of e-commerce development including e-commerce infrastructure and services, payment, trade logistics, legal and regulatory frameworks, skills development and financing of e-trade economy. After underscoring the important role of e-commerce in the attainment of the Sustainable Development Goals and the ECOWAS Vision 2050, he highlighted the efforts undertaken by the region to tackle the challenges of e-commerce development.
The strategy will take into consideration the African Union (AU) led initiatives in the area of e-commerce and digital development, the new African Continental Free-Trade Area (AfCFTA), and other relevant programmes/projects implemented at national level and international level.
“The challenges posed by the pandemic have strengthened our collective resolve as a region to build back better, and part of our strategy is to work together as a regional bloc. It is in this regard that we appreciate and commend the support and leadership role of our development partners such as African Development Bank Group in the development of quality health infrastructure across the continent,” the Health Minister said.
African Development Bank Vice President Dr. Beth Dunford has outlined the details of a new strategy that seeks to boost access to health services across the continent. Dunford delivered the message in a keynote speech at the 22nd Ordinary Session of the Economic Community of West African States Assembly of Health Ministers in Abuja.
Kagame urges African parliaments to back continental medicines agency (The New Times)
President Paul Kagame has called upon all national parliaments to back the treaty on African Medicines Agency (AMA), which has now entered into force. The President made the observation on Wednesday, November 24, as he opened the 17th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) - Africa Region.
“This is a landmark agreement that will help ensure that vaccines and medications in Africa are both high-quality and locally produced,” he said of the African Medicines Agency treaty. Among its functions, AMA will develop systems to monitor, evaluate and assess the comprehensiveness of national medical products regulatory systems with the view to recommend measures that will improve efficiency and effectiveness.
AU border program on improving cross-border trade held in Accra (GhanaWeb)
The German Development Cooperation (GIZ) is facilitating an ongoing awareness engagement with the African Union to ensure greater security for citizens and visitors while guaranteeing respect for the rule of law and human rights standards at the various borders of Ghana and West Africa. The technical awareness workshop which brought together members from Immigration and Police Service, Customs and Health agencies of the four countries and ECOWAS Directorate of Free Movement & Tourism seek to contribute to the development of the long-term capability of Ghana and West Africa’s border control authorities, to update border management information and communication systems and to ensure greater securities at the borders.
Huge potential to boost Arab-Africa trade (African Business)
In general terms, Arab countries, specifically in the Middle East, import precious metals and foodstuffs from Africa while exporting pharmaceuticals, machinery and plastics. A range of public development entities and private Arab companies work across Africa. One of the most well-known is the Dubai-based logistics company, DP World, which is set to invest more than $1bn in three African countries: Senegal, Egypt and Somaliland. But relative to the long history of trade and cooperation, the size of Arab-African trade today remains small. “With total Arab-Africa trade at around $80bn we have a long way to go to catch the opportunities that abound,” says Benedict Oramah, president of the African Export-Import Bank (Afreximbank) at the Second Arab-Africa Trade Forum in Cairo in October.
One of the largest opportunities in Africa for Arab investors is light manufacturing, with an estimated $80bn worth of potential on the continent. “The Arab world can take advantage of the relatively cheaper capital and labour costs in Africa either for the domestic market or for exports,” says Oramah. The creation of the African Continental Free Trade Area (AfCFTA), which boasts a combined GDP of $3.4trn, should act as catalyst to encourage Arab companies to manufacture goods that can be sold across the continent.
International
Global Trade Will Grow by 70% to USD30trn by 2030 (Proshare)
Future of Trade 2030: Trends and markets to watch new research by Standard Chartered projects that global exports will almost double from USD17.4tn to USD29.7tn over the next decade. The report reveals 13 markets that will drive much of this growth, identifies major corridors, and five trends shaping the future of global trade.
Global trade will be reshaped by five key trends: the wider adoption of sustainable and fair-trade practices; a push for more inclusive participation; greater risk diversification; more digitisation and a rebalancing towards high-growth emerging markets. Almost 90 per cent of the corporate leaders surveyed agreed that these trends will shape the future of trade and will form part of their five to 10-year cross-border expansion strategies.
The research found a significant trend towards the adoption of sustainable trade practices in response to climate concerns and a rising wave of conscious consumerism. However, while almost 90 per cent of corporate leaders acknowledged the need to implement these practices across their supply chains, only 34 per cent ranked it as a 'top three' priority for execution over the next five to 10 years.
Members and partners invited to submit Aid-for-Trade questionnaires for 2022 Global Review (WTO)
The aim of the exercise is to survey: Aid-for-Trade priorities and how these have changed since the last monitoring exercise policies for sustainable development policies for women’s economic empowerment. The objective is to gather information on the countries’ trade and development priorities and on the role that Aid for Trade can play in supporting environmental sustainability and women’s economic empowerment. The ongoing economic and trade impact of the COVID-19 pandemic also features prominently in the survey.
DG Okonjo-Iweala briefs civil society organizations ahead of 12th Ministerial Conference (WTO)
Over 170 representatives from CSOs working on trade-related issues attended the briefing. They highlighted areas of critical importance for their constituents and asked questions on matters such as possible deliverables at MC12, how the WTO is going to ensure inclusive participation of all members at the conference and how CSOs can contribute to efforts to reach a positive outcome at MC12. The Director-General updated CSOs on recent developments in the WTO negotiations while Deputy Director-General Angela Ellard provided information on the administrative and logistical issues relating to CSO participation at MC12.
Initiative to drive robust global growth (Hellenic Shipping News Worldwide)
Media buzzwords such as “loses steam” have frequently struck a public nerve worldwide recently in reference to rising commodity prices, disrupted supply chains, dwindling trade or shrinking job opportunities in a number of regions. “If supply disruptions continue or inflation expectations become de-anchored, inflation may become more sticky,” said Kristalina Georgieva, managing director of the International Monetary Fund. The IMF said in its latest “World Economic Outlook” report, released last month, that the momentum of global recovery has weakened and “uncertainty has increased”.
Chen Fengying, a senior economist and former director of the Institute of World Economic Studies at the China Institutes of Contemporary International Relations, said this is “because development is a premium benchmark for all countries, and the world haunted by the COVID-19 pandemic will be in deep trouble if global growth fails to gather steam in a robust way”.
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SA companies scored deals worth millions at Intra-African Trade Fair-Rocha (The dtic)
Most of the more than 80 government-supported South African companies which showcased their products and services at the week-long Intra-African Trade Fair (IATF), which ended Durban on Sunday expressed great satisfaction with the event. They held fruitful engagements and reported sales of over R3 million at the stand, as well as projected sales to the value of about R86 million expected over the next six months as deals continue to be sealed and delivered . This is according to the Chief Director of Trade Invest Africa at the Department of Trade, Industry and Competition (the dtic), Mr John Rocha. “The trade fair was a vehicle for us to execute our mandate as a department to increase, expand and diversify markets for the export of South African goods and services into Africa, and position South Africa as the partner of choice,” says Rocha.
KQ and South African Airways sign strategic partnership framework (Capital FM Kenya)
Kenya’s national carrier, Kenya Airways PLC (KQ), has signed a Strategic Partnership Framework today with South African Airways (SAA), a key milestone towards co-starting a Pan African Airline Group by 2023. The partnership framework follows the Memorandum of Cooperation (MoC) that the two airlines signed two months ago to foster the exchange of knowledge, expertise, innovation, digital technologies, and best practice between the two airlines. The signing of the Strategic Partnership Framework by the two African airlines will see both airlines work together to increase passenger traffic, cargo opportunities, and general trade by taking advantage of strengths in South Africa, Kenya, and Africa. It is expected that the partnership will improve the financial viability of the two airlines. Customers will also benefit from more competitive price offerings for both passenger and cargo segments.
Mombasa port sees marginal cargo growth (Business Daily)
Mombasa port continues to reel from the effects of the Covid-19 pandemic, recording minimal cargo growth in the first nine months of 2021. The port handled 26.17 million tonnes of cargo this year up to September compared to 25.05 million tonnes in the corresponding period in 2020. In the period under review, the Mombasa port witnessed increased volumes in container traffic registering 1.1 million containers against 1 million last year. Acting Kenya Ports Authority (KPA) managing director John Mwangemi said notable resilience has been observed this year and expressed optimism the port will record significant growth in the coming few months. “We remain optimistic that as the year comes to a close, the port will continue handling more cargo to further increase the positive performance,” said Mr Mwangemi.
Flower firms jostle for limited cargo space in Kenya Airways (Business Daily)
Flower firms are competing for forward booking to get space guarantee for their produce on Kenya Airways as demand for roses in Europe soars in the wake of limited freight capacity. There has been a high demand for flowers in Europe amid low capacity at the Jomo Kenyatta International Airport as flights are yet to resume full operations after the disruptions occasioned by Covid-19 last year. The national carrier says it will be increasing passenger flights to Europe ahead of Christmas, a move that will help in evacuating more cargo to Kenya’s leading export destination for horticulture. The belly cargo in passenger flights accounts for up to 40 percent of the total freight that is transported by air.
Traders decry long clearance processes on Kenya-TZ border (Nation)
Traders on the Kenya-Tanzania border in Lungalunga, Kwale County, have decried long clearance processes, prompting them to use alternative routes to ferry their goods and denying the government revenue. Speaking during a sensitisation campaign organised by the Kenya Revenue Authority (KRA) at Horohoro on Monday, they said certifications needed for cross-border trade make them avoid using one-stop border posts. Such border posts were envisioned to help deepen policy integration and reduce barriers to trade between Kenya and its neighbours. Cross Border Traders Association secretary Zipporah Kamau said lack of information had also made it difficult for traders to conduct business in legal ways.
Seychelles’ first-ever High Commissioner from Uganda gains accreditation, looks at agricultural trade (Seychelles News Agency)
Uganda and Seychelles will cooperate in the sectors of agriculture, tourism and education, said the first-ever accredited Ugandan High Commissioner to the island nation. Hassan Wasswa Galiwango presented his credentials to President Wavel Ramkalawan on Tuesday morning at State House. He is the first High Commissioner accredited to Seychelles, although the two countries established diplomatic relations in 1992. “We are furthering the relationship between the Republic of Uganda and Seychelles. We want to enhance our cooperation in the sectors of agriculture, tourism, education and the judiciary so to promote trade, especially in agriculture,” said Galiwango. Uganda a land-locked country in eastern Africa has an estimated population of 47.7 million people. Agriculture accounts for about 23.7 percent of its Gross Domestic Product and 31 percent of its export earnings.
FG Targets 2025 to Implement WTO Trade Facilitation Agreement (Business Post Nigeria)
The Nigerian Communications Commission (NCC) has said it has pegged the auctioning price of 3.5GHz spectrum to facilitate deployment of fifth-generation technology (5G) in the county at N75 billion. This was revealed by the Executive Vice-Chairman of the commission, Mr Umar Danbatta, at the Prize Presentation Ceremony of the 3rd NCC National Essay Competition on 5G technology in Abuja, explaining that 100MHz of the 3.5GHz will cost N75 billion.
“The NCC is at the verge of auctioning Spectrum for the provision of 5G technology, and we decided to take advantage of the moment by motivating challenging our youth to be innovative and as resourceful as their counterparts in advanced countries. “The controversies surrounding COVID-19 and 5G technology is now in the past.
Angola set aside $445million to construct 21 Logistics Hubs (Construction Review)
By 2038, the Angolan government wants to invest more than US$445.5 million (392.3 million euros) in the construction of 21 logistics hubs in Angola to reduce the problems of goods transportation, which is still primarily reliant on-road transit. The details were revealed at the initiation of an international public tender in Zaire for the concession, building, operation, and commercial management of the Soyo and Luvo Logistics Platforms.
Ricardo de Abreu, the Minister of Transport, stated that each of the platforms created by 2038 would have unique qualities that will complement one another. According to him, the logistics platform network will be an important part of the plan to diversify the national economy, and depending on the province where they are installed, they will make storage, conservation, and flow of production from productive, rural, and fishing areas, as well as from agri-industrial hubs, easier.
According to the minister, Angola is placed 162 out of 163 nations in the World Bank’s Logistics Index. The organization estimates that transportation and logistics expenditures in Angola were 16.7% of GDP in 2017. This is more than double what the most developed economies have. Six logistics hubs in Angola are expected by 2022, which will help the country’s regions realize their full economic potential and meet residents’ and businesses’ rising demand for products and services.
Inter-trade Organisations : Government Seeks Proper Organisation (Cameroon Tribune)
This is contained in the bill governing inter-trade organisations in Cameroon that is under discussion in the National Assembly. The Minister of Agriculture and Rural Development, Gabriel Mbairobe on November 17, 2021 in the Committee on Constitutional Laws of the National Assembly defended the bill governing inter-trade organisations in Cameroon.
The Minister explained that the bill seeks to address a number of problems identified in Cameroon’s production sectors, notable inequalities, lack of synergy in stakeholder interventions and the near absence of a structured organisation meeting international standards. This state of affairs calls for the pressing need for a legal framework to organise the economic sectors into complementary and interdependent value chains, while protecting the interests of all the links.
FDA poised to break down regulatory barriers to facilitate Intra-African Trade (Ghanaian Times)
The Food and Drugs Authority (FDA) has reiterated its commitment to support the Africa Continental Free Trade Area (AfCFTA) initiatives aimed at promoting intra-African trade. Deputy Chief Executive Officer, responsible for Technical Operations at the FDA, Mrs AkuaAmartey indicated that the recent introduction of FDA’s flagship programme – the Progressive Licensing Scheme, was targeted at developing cottage, small and medium scale enterprises (MSMEs), for them to increase their export base and help to realise an ultimate boost in intra-Africa trade transactions by volume and value.
Comparative Advantage and Growth Potential of the Democratic Republic of Congo (AfDB)
We use disaggregated trade data for the years 2014–2018 to identify the areas of revealed and latent comparative advantage of the Democratic Republic of Congo (DRC). We find that the DRC’s export basket is highly concentrated and dominated by products with low value-added and potential income that are derived from copper, cobalt, tin, diamonds, and oils. We identify a number of products that the DRC could easily develop given its areas of revealed comparative advantage, including machinery for filtering or purifying water, traffic control equipment, electrical apparatus, photographic laboratory equipment, and printing machinery. The development of such products can help the DRC achieve the dual goals of diversifying its exports and accelerating the structural transformation of its economy. Policymakers can use these products as a starting point to conceive adequate industrial and trade policies that pursue this dual goal.
The Democratic Republic of the Congo (DRC) can leverage its abundant cobalt resources and hydroelectric power to become a low-cost and low-emissions producer of lithium-ion battery cathode precursor materials. At the behest of UN Economic Commission for Africa (ECA), Afreximbank, the African Development Bank (AfDB), the Africa Finance Corporation (AFC), the Arab Bank for Economic Development in Africa (BADEA), the African Legal Support Facility (ALSF), and the UN Global Compact, a new study by BloombergNEF (BNEF) on a unified African supply chain estimates that it would cost $39 million to build a 10,000 metric-ton cathode precursor plant in the DRC. This is three times cheaper than what a similar plant in the U.S. would cost. A similar plant in China and Poland would cost an estimated $112 million and $65 million, respectively. Precursor material produced at plants in the DRC could be cost competitive with material produced in China and Poland but with a lower environmental footprint.
“The DRC’s cost competitiveness comes from its relatively cheap access to land and low engineering, procurement and construction, or EPC, cost compared to the U.S., Poland and China,” said Kwasi Ampofo, lead author of the report and BNEF’s head of metals and mining. “European cell manufacturers currently rely heavily on China for battery precursors. However, the raw materials for batteries are, in most cases, imported into China from Africa and refined before being exported to Europe. Automakers in Europe can lower their emissions by shortening the transport distance and capitalizing on the DRC’s hydroelectric powered grid and proximity to raw materials.”
Electric vehicles represent a $7 trillion market opportunity between today and 2030, and $46 trillion between today and 2050, according to the new report, “The Cost of Producing Battery Precursors in the DRC”, launched at the DRC-Africa Business Forum 2021 taking place today and Thursday. While there are notable leading electric-vehicle and cell manufacturers today, the sheer scale of growth expected in the coming decades means that there is inherent uncertainty over which companies and countries may come to dominate this new value chain. African countries could play a major role in the lithium-ion battery supply chain by taking advantage of their abundant natural resources and onshoring more of the value chain.
Africa
Why obstacles still hinder implementation of AfCTA 11 months after take-off (International Center for Investigative Reporting)
NIGERIA and other African countries may have to wait a little longer for the full take-off of the African Continental Free Trade Area Agreement, (AfCFTA) as grey areas are still exist, THE ICIR has learnt. The African Continental Free Trade Area Agreement came into full force in January 1 2021, but yet to take off fully. The director-general of the Nigerian Office for Trade Negotiations, Ambassador Yonov Agah pointed out several obstacles to the swift take off of the pact. Agar while speaking at the the National Action Committee on African Continental Free Trade Area Agreement sub-national strategy workshop in Abuja said lots of issues are still under negotiation by various continental regional blocs, stressing that rules of origin is still being discussed.
“Rules of origin, tarrif schedule trade protocols, technical barriers to trade, protocols on dispute settlement are key areas still being looked into.” Agah said. “Overall, we are at the initial stages of the implementation. We are also still negotiating outstanding areas of phase one in trade in goods, and trade in services. Phase two which we will start in July to August is intellectual property rights, competition policy women in trade, digital trade. We want to get it right so that our people can enjoy maximum benefits of the trade pact.”
US Firms Find New Opportunities in Healthcare, Manufacturing, Digitalization Under AfCFTA (Energy Capital & Power)
Following its implementation at the start of this year, the African Continental Free Trade Area (AfCFTA) has transformed Africa’s small, fragmented and often landlocked markets into the largest free trade area globally, comprising 1.2 billion people and valued at approximately $3.4 trillion. By removing trade barriers and fortifying regional value chains, the agreement aims to boost Africa’s trading position in the global market and enable the free movement of goods, services and people across the continent. In addition to accelerating intra-African trade, which is estimated by the U.N. Economic Commission for Africa to increase by 15-25% by 2040, the AfCFTA is set to facilitate Africa’s trade with global trading partners.
For U.S. companies, the African continent is one of the youngest and fastest-growing consumer markets globally and represents a vast export market for American goods and services. The AfCFTA harmonizes policy and regulatory regimes across African markets – not to mention abolishes tariffs on 90% of goods produced on the continent – thereby reducing the cost of transactions for foreign and domestic players alike. Key sectors open to U.S. participation include healthcare, pharmaceuticals, automobiles, agro-processing and financial technology, with African health systems already receiving an influx of essential products, vaccines and medical equipment manufactured in the U.S. during the COVID-19 pandemic.
Industrialization in Sub-Saharan Africa: Seizing Opportunities in Global Value Chains (World Bank)
Historically, structural change has been the force behind sustained economic growth, driving large-scale job creation and productivity growth. Industrialization — defined as rapid transformation of the significance of manufacturing vis-à-vis other sectors — has been the mainstay of structural transformation and the resulting economic growth and development. Industrialization has long been a reliable path to fast-track countries into middle- and high-income economies. Therefore, industrialization-driven structural transformation must be at the forefront of policy strategies for Sub-Saharan African countries. Recently, emerging trends such as functional and geographic fragmentation of production, adoption of advanced production technologies in manufacturing, and shifting globalization patterns, climate change, and global pandemics have characterized the global economy. These developments have generated a lot of debate and speculation about the prospects of manufacturing as a potential driver of job creation, income growth and structural change in Sub-Saharan Africa.
Kagame tips lawmakers on building Africa’s resilience (The New Times)
President Paul Kagame has urged parliamentarians to remain at the forefront of building the continent’s resilience against threats like health, among others. The Head of State made the call while officially opening the 17th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) - Africa Region underway in Kigali. The meeting, which convened over 12 branches of the Commonwealth Parliamentary Association (CPA), was held under the theme ”African Parliaments in the 21st Century”. “Since the beginning of the Covid-19 pandemic many African countries took the lead on response and with support of parliaments,” President Kagame said.
“However as we continue on the path to recovery, parliaments still need to be at the forefront of building Africa’s resilience against mainly health but also other threats,” Kagame pointed out.
Africa must industrialise, cease being dumping site for industrial products – Sanwo-Olu (P. M. News)
Lagos State Governor, Babajide Sanwo-Olu on Tuesday said there is urgency in the need for Africa to industrialise and cease being a dumping site for industrial, commercial and consumer products from other countries. Sanwo-Olu spoke at the 2021 Africa Industrialisation Day, held in Alausa, Ikeja, Lagos, saying that industrialization of Africa would serve a dual purpose of socio-economic empowerment through job creation and wealth generation opportunities for the people and enhance revenue generation for government for sustainable development of the economy and provision of infrastructure and social services.
African trade reliant on secure maritime links, Seychelles’ President tells COMESA (Seychelles News Agency)
Trade can only be realised if the maritime links that connect eastern and southern Africa and beyond are reliable and have been properly secured, the President of Seychelles, Wavel Ramkalawan, told leaders from the region. Ramkalawan made his first address as the President to heads of state and government in the 21st summit of the Common Market for Eastern and Southern Africa (COMESA) Authority which took place in Cairo, Egypt on Tuesday.
“There is no doubt that regional and international trade are drivers of development, with over 80 percent of the world’s trade transported by sea. In light of this, maritime security is of paramount importance,” he said over video link.
Eastern Africa’s economy projected to rebound by 3 percent in 2021 (Journalducameroun)
Optimism abounds as the economy, which shrunk for the first time in a decade last year, is projected to rebound by 3 percent in 2021. This was revealed during the 25th session of the Intergovernmental Committee of Senior Officials and Experts organized by the UN Economic Commission for Africa. The meeting, attended by 100 decision-makers and experts, discussed how countries in the sub-region should strengthen resilience for a strong recovery and how to attract investments to foster economic diversification and long-term growth. Speaking at the meeting, Vera Songwe, the Executive Secretary of the UNECA, stressed how in 2020, the economy of Eastern Africa shrunk for the first time in decades.
EAC in new campaign to revive Covid-19-hit tourism industry (The New Times)
The East African Community (EAC) on Wednesday, November 24, launched a new regional tourism media campaign as part of the plans to implement the six-member bloc’s tourism recovery plan. Speaking at the launch at the EAC Headquarters in Arusha, Tanzania, EAC Secretary General, Peter Mathuki, noted that the new campaign is supported by GIZ following a request by the Secretariat to support Covid-19 recovery initiatives. The new tourism media campaign is harmonised with a similar campaign recently initiated by the East African Tourism Platform (EATP) to ensure synergies and avoid duplication.
COMESA Leaders focus on up-scaling investment in health (COMESA)
COMESA Heads of State have today urged Member States to scale up investment in research and innovation in the health sector and to prioritize all programmes that would enhance socio-economic recovery and generate more resilient societies that are ready to respond to disasters that may come. In their communique issued at the end of their 21st COMESA Summit, the leaders noted the devastating socio-economic and cultural effects of the COVID-19 pandemic across various sectors of the economy and the low vaccine production and access in the region. The leaders urged Member States to invest in digital infrastructure to enhance universal access to internet to address the challenges arising from the digital divide and support the digitalisation of the economies.
“Embrace E-Commerce” – Chilima tells Comesa (Nyasa Times)
Malawi’s Vice President Saulos Chilima has urged the Common Market for Eastern and Southern Africa (Comesa) member states to adopt commerce platforms so as to explore new market opportunities. “I am delighted that Comesa has already started embracing ICT in its work programme. These include the automation of customs procedures, establishment of on-line reporting and monitoring system for non-tariff barriers,” he told the high level indaba. Recently, Comesa Secretariat launched a 50 Million Women Speak digital platform supporting women to do business online, an initiative which Chilima said is a step in the right direction. “It can reduce the cost of doing business and facilitate more flow of goods and services. It can reduce unemployment,” said Chilima, who is also scheduled to hold one on one meetings with Egypt government officials on Thursday, November 25,2021. Added Chilima: “Digitalization can also reduce illiteracy in our respective countries. Imagine a student in remote village accessing the same educational content as the one in the Capital City and that is where Comesa and other African countries ought to be.”
Central Africa Economic Outlook 2021 (AfDB)
The COVID‐19 pandemic has been contained relatively successfully in Central Africa, which comprises the six member countries of the Central African Economic and Monetary Community (CEMAC)—Cameroon, the Central African Republic, Chad, the Republic of Congo, Equatorial Guinea, and Gabon—and the Democratic Republic of Congo. Partly due to government lockdowns, mask requirements, and mobility restrictions and partly to the region’s younger populations and distance from highly infected areas.
Still, the pandemic has affected all Central African countries by damaging economic growth. The region’s economies, which were struggling before COVID-19 due to security challenges and oil price volatility, have experienced significant shocks due to their heavy dependence on oil exports. The curtailment in economic activity, coupled with decreased international demand for oil amid plummeting prices, caused the region’s average growth rate to fall to –2.6 percent in 2020, down from 2.8 percent in 2019. The worst-affected countries were the Republic of Congo (–6.8 percent), Equatorial Guinea (–6.1 percent), and Gabon (–2.7 percent). Country with positive growth rates in 2020 were the Central African Republic (0.4 percent) To foster recovery, it will be crucial to strengthen fiscal buffers through aid or domestic revenue mobilization. In addition, better governance can help ensure that fiscal measures target vulnerable populations. Finally, CEMAC should examine exchange rate reform to find a system that promotes growth and adjustment to shocks.
Mega infrastructure project delays hurt intra-Africa trading (Business Daily)
Delays in cross-boundary infrastructure projects have been caused by a lack of cooperation among countries, slowing down intra-Africa trade. Former Prime Minister Raila Odinga says derailed investment of infrastructure projects in transport, energy and ICT in the Intergovernmental Authority on Development (IGAD) region has interrupted the completion of planned priority projects among member states.
“LAPSSET is a good example of a regional project whose implementation has been paralysed by the lack of national ownership and failure by regional economic communities (RECs) to prioritise it,” Mr Odinga, who is also the AU representative for infrastructure development in Africa, said. “Continental free trade will only be realised if the RECs are effective in their role of facilitating regional economic integration between members of the region.”
Policy for recovery in Africa: Partnerships for sustainable development (Chatham House)
The COVID-19 pandemic has exposed an urgent need for multilateral partnerships to tackle development inequalities and vulnerabilities. Sustainable development has been put on the backburner whilst many come to terms with the destabilising nature of the pandemic. However, the disruption of social and economic norms has also created an opportunity for profound change. Global collaboration can provide an opportunity for the world to systemically shift to a more sustainable approach.
At this event, panellists will identify the roles, responsibilities, and expectations of different stakeholders in working towards sustainable development, and the impediments to achieving Agenda 2063 and the Sustainable Development Goals (SDGs).
ICC strengthens ties with Francophone Africa (ICC)
Bringing together chambers from over 100 countries the Congress is enabling chambers, including those from Francophone Africa, to develop tailored action plans under the theme, “Generation Next: Chambers 4.0” At a dedicated side meeting for French-speaking chambers, ICC and CPCCAF set out the terms of a cooperation agreement, signed last month at ICC Global Headquarters in Paris, to promote open trade and investment, and facilitate the integration of businesses in Francophone Africa to the global economy. The agreement will be relating to international trade, access to finance, dispute resolution and entrepreneurship.
How geothermal energy is diversifying the energy mix in East Africa (AFRIK 21)
The natural heat of the underground can be exploited to produce electricity. The African Development Bank (AfDB) estimates the geothermal potential in the Rift Valley at 20,000 MWe, where this clean energy is already partially exploited. Less intermittent than other renewable energies, geothermal energy can diversify the electricity mix of a country like Kenya.
International
Agriculture negotiations chair introduces revised text ahead of MC12 (WTO)
While it seeks to take into consideration the positions expressed by all WTO members on all topics in the negotiations to date, it does not seek to reflect these positions exhaustively,” the chair highlights in her introduction to the new text, noting the revised document is without prejudice to any member’s position. The revised text was presented as part of the chair’s report to the General Council on 23 November. The chair praised members for using the first draft text as a tool to advance their work since July. “I am extremely grateful to members for their tireless efforts and constructive attitude in the talks thus far. To the extent that the revised draft negotiating text represents a useful contribution to the preparations for the Ministerial Conference, credit is due to the hard work, determination, and good faith of members,” she noted.
Making agrifood systems more resilient to shocks: Lessons from the COVID-19 pandemic (FAO)
Countries need to make their agrifood systems more resilient to sudden shocks of the kind witnessed during the COVID-19 pandemic, which has emerged as a major driver of the latest rise in global hunger estimates. According to a new report published today by the Food and Agriculture Organization of the United Nations (FAO), without proper preparation unpredictable shocks will continue to undermine agrifood systems. This year’s The State of Food and Agriculture (SOFA) report by FAO is entitled “Making agrifood systems more resilient to shocks and stresses.” It provides an assessment of the ability of national agrifood systems to respond to or recover readily from shocks and stressors. It also offers guidance to governments on how they can improve resilience.
Keys to Safely Restoring Global Mobility: Simplicity, Predictability, Practicality (IATA)
The International Air Transport Association (IATA) called on governments to adopt simple, predictable and practical measures to safely and efficiently facilitate the ramping-up of international travel as borders re-open. Specifically, IATA urged governments to focus on three key areas: 1. Simplified health protocols 2. Digital solutions to process health credentials 3 .COVID-19 measures proportionate to risk levels with a continuous review process The industry’s vision to address the complexity is outlined in the newly released policy paper: From Restart to Recovery: A Blueprint for Simplifying Travel. “As governments are establishing processes to re-open borders, in line with what they agreed in the Ministerial Declaration of the ICAO High Level Conference of COVID-19, the Blueprint will help them with good practices and practical considerations. Over the next months we need to move from individual border openings to the restoration of a global air transport network that can reconnect communities and facilitate economic recovery,” said Conrad Clifford, IATA’s Deputy Director General.
The threat of 2.4°C of warming is looming - ESI-Africa.com (ESI-Africa)
A briefing by the Climate Action Tracker (CAT) stated that even if all current climate pledges are made, the world is still headed to 2.4°C warming if not more. As excessive floods, severe drought and famine continue to be experienced in different parts of the world, global leaders remain largely unfazed with regards to making ambitious climate targets. Their decisions for making firm commitments and implementing climate action are set far too late for any chance of slowing down or reversing the harsh climate impacts. As activists fought and raised their voices during the recently concluded climate talks at COP26, literally the world’s best last chance to save the planet from a climate emergency, little tangible gains were made.
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National
Department of Trade, Industry and Competition zooms in on manufacturing at Indaba (IOL)
The Department of Trade, Industry and Competition (DTIC) Minister Ebrahim Patel is on a course of recovery in the manufacturing sector, seeking to chart a post-Covid-19 pandemic recovery course for the sector.
The 2021 Manufacturing Indaba, which is already under-way, will focus on a wide range of areas with relevance to the fortunes of the South African manufacturing sector. These include, but are not limited to, the role of renewable energy, electric vehicles, the Africa Continental Free Trade Agreement and the role of financial support in enabling manufacturing advances on the continent.
The Minister, in the keynote address at the opening session of the Indaba, said that the African market represents a R7 trillion opportunity for goods that can be manufactured on the continent
Infrastructure is key to attracting investment (SAnews)
South Africa must attract investors through the development of infrastructure, says Minister in the Presidency Mondli Gungubele. “Infrastructure must attract investors into our country,” Gungubele said during an oversight visit to the Musina Ring Road construction site in Musina, Limpopo on Monday. The R640-million construction of the Ring Road from Musina South to Musina North commenced in December 2019 and is expected to be completed in 2022.
SA and Kenya should pioneer intra-Africa trade: Ramaphosa (SABC News)
President Cyril Ramaphosa says as advocates of Pan Africanism South Africa and Kenya should pioneer intra-Africa trade. He was speaking during his opening remarks following Kenyan President Uhuru Kenyatta’s state visit at the Union Buildings in Pretoria. Both countries have ratified the African Continental Free Trade Area which seeks to ensure African states trade amongst themselves. Currently, the intra-Africa trade is standing at less than 15% compared to over 60% in Europe. Again with two-way trade of R7.2 billion for South Africa against R329 million for Kenya, President Ramaphosa says this has to change. He says they need to ensure fair trade between the two countries.
SA-Kenya strengthen ties (SAnews)
Bilateral cooperation between South Africa and Kenya is expected to elevate to the level of a strategic partnership following an official State Visit to South Africa by Kenyan President Uhuru Kenyatta. This is according to President Cyril Ramaphosa who – together with President Kenyatta – addressed the media at the Union Buildings in Pretoria. “This would signify the importance of our political, economic and social ties and the leadership role we play in our respective regions. We need to consolidate those areas of cooperation that anchor our relations, explore new ones within the current state of global affairs, and address challenges that will affect our people in the future,” President Ramaphosa said on Tuesday.
Address by President Cyril Ramaphosa at the South African-Kenya business forum
Kenya eyes Dubai expo to grow Gulf exports (Business Daily)
Kenya seeks to grow exports to Arabic Countries such as United Arab Emirates (UAE), Saudi Arabia, Qatar, among others to Sh280.68 billion next year through its participation in the Expo 2020 Dubai. The Kenya Export Promotion and Branding Agency (Keproba) on Monday said that it targets to grow export value from Sh61.75 billion in 2019 to Sh280.75 billion in 2022, representing a four-fold increase. Kenya is among 192 countries that are showcasing their wide array of products such as apparel, avocados, bulk black tea, cut flower, goat meat, vegetable, coffee, textiles, among others at this year’s Expo that started in October 2020 and will end in March next year.
Relief for mango farmers as EU exports to resume (Business Daily)
Kenya’s mango farmers can now access the lucrative European Union market following successful negotiations between Nairobi and Brussels last week to allow in produce from areas that have a low prevalence of fruit flies. Kenya has since 2013 placed a self-imposed ban on the export of mangoes to the EU due to the fruit fly menace, keen to avoid having the restriction imposed by the bloc itself as this would make it harder to resume exports once the fly is contained. Officials from the Directorate of Horticulture, Kenya Health Plant Inspectorate Service (Kephis) and stakeholders from farmers’ associations were in Brussels last week to pitch a case for Kenyan mango exports following the creation of a pest-free zone and construction of a hot water treatment plant.
Kenya’s modern shipbuilding facilities in Kisumu and Mombasa ready for use (The East African)
Kenya is eyeing the lucrative shipbuilding and repair business after the completion of two modern shipyard facilities. The two built by the Kenya Navy are the largest shipyards with a slipway in East Africa. Their completion opens a new frontier for the country as it seeks maritime hub status and to tap into the blue economy.
KSL began with refurbishing the 56-year-old MV Uhuru, a ship owned by Kenya Railways, and which has seen more than 50 million litres of petroleum products moved in 26 round trips to Ugandan ports this year. MV Uhuru had stalled for over 15 years, and its revival and lucrative trips have seen Kenya Railways order for a new vessel from the shipyard. But as Kenya and Tanzania tussle for the logistics deals on Lake Victoria, landlocked Uganda is the ultimate beneficiary, with transport costs for fuel coming down by 33 per cent, and cargo can now get to Port Bell in less than half the time it takes by road.
“The time taken to cover the distance from Kisumu to ports in Uganda and Tanzania has reduced by almost half. The transport costs have also dropped. Initially via road they used to charge $0.25 per tonne per kilometre. This was reviewed down to $0.17 per tonne per kilometre over water, which was shorter and that is why we are having a lot of business. And that is how the requirement for a second wagon ferry came in,” Brig Otieno said.
Tanzania eyes 58 percent increase in DRC import and export cargo (The Citizen)
Tanzania seeks to raise the volume of cargo destined to and from the Democratic Republic of Congo (DRC) by 58 percent in the next two years. That comes following the Tanzania Ports Authority (TPA) plan to increase freight volumes passing through the Dar es Salaam Port to and from DRC from the 1.9 million tonnes recorded in 2020/21 to three million after the next two years. TPA has revealed the new target after recording a significant increase from 1.1 million tonnes in 2016/17 to 1.9 million tonnes in the 2020/21 translating to 57 percent of the increment.
“Cargo to and DRC passing through the Dar es Salaam Port is between 35 to 40 percent and not 100 percent. The remaining percentage is handled by other ports elsewhere,” he said. However, he said the volume of freight passing through Tanzania’s marine gateway could be increased following the major investment and improved efficient of the Dar es Salaam Port.
Air Tanzania ups stake for East African skies (The Citizen)
Air Tanzania is set to step up competition in the East African skies with the launch of flights on the Dar es Salaam-Nairobi route from November 26, and plans for Bujumbura later in the month. The airline’s first flight to Nairobi from Julius Nyerere International Airport will cost Sh37,525 ($334) for a return trip and approximately Sh23, 594 ($210) one way. The Tanzanian national carrier began operating three flights a week to Ndola in Zambia and the eastern DR Congo city of Lubumbashi, respectively, from November 18. “The resumption of Air Tanzania operations between Dar es Salaam and Nairobi, as at the best as a game changer in the bilateral engagement between Tanzania and Kenya,” said the High Commissioner of United Republic of Tanzania in Nairobi John Stephen Simbachawene Friday.
Nigeria targets $1.2bn export capacity for every state (Vanguard)
The National Action Committee, African Continental Free Trade Agreement (AfCFTA) has emphasised the need to cascade down its activities to the subnational level with state governments playing a major role. Secretary of the committee, Mr Francis Anatogu, said this on Monday during a joint news conference with the Nigeria Governors’ Forum (NGF), in Abuja, on the AfCFTA Subnational Strategy Workshop scheduled to hold from Tuesday to Thursday in Abuja. Anatogu said that for AfCFTA to be truly successful in Nigeria, there was a great need to work with states to find their niche in Africa’s export market.
African Development Bank report validates COVID-19 decisions by Seychelles’ government (Seychelles News Agency)
A report for Seychelles entitled “COVID-19 Impact Assessment & Recovery Strategies” validates measures taken by the government to stabilise the economy and budget, as well as increase economic resilience, said a top official. Prepared by the African Development Bank (AfDB) in collaboration with the Ministry of Finance, Economic Planning and Trade, the study’s objective was to assess the impact of the COVID-19 pandemic on the economy of Seychelles. It focused on the key productive sectors of the economy, namely tourism, fisheries and manufacturing. The Seychelles’ finance minister, Naadir Hassan, said on Tuesday during the launch that “the timing of this report is most opportune, as it coincides with national efforts to relaunch the economy, as we look ahead to unlocking new areas of potential economic growth found in the Digital Economy, Blue Economy and Fisheries, Agriculture, Financial Services.”
IMF issues conditions to fund South Sudan (The East African)
The International Monetary Fund (IMF) says support to South Sudan’s ailing economy is pegged on the government’s willingness to open to an accountability probe. The IMF wants President Salva Kiir’s government to account for past loans, prosecute the corrupt and improve financial discipline and transparency in use of public resources, especially earnings from oil. While insisting on the conditions in a meeting with President Kiir and his Finance minister last week in Juba, IMF Director of African Department Abebe Selassie also acknowledged the financial constraints imposed on South Sudan by Covid-19, floods and the declining economy. “In the coming weeks and months, we hope to support the government in its endeavours to make sure that important areas of accountability and reforms are addressed,” said Mr Selassie.
Analyzis of Key Export Markets for Ethiopian Coffee Roasters and Exporters of Roasted Coffee (UNCTAD)
Coffee exports play an important role in Ethiopia’s economy, but international markets pose several challenges to coffee exporters from producing countries such as Ethiopia. These exporters face difficulties in diversifying their exports from green beans to roasted coffee, which would add value to their products. One of their main challenges is to identify key destination markets for their roasted coffee and understand how to access them. Examining the conditions of access to these markets of interest would thus help strengthen the export capacity of Ethiopian roasters. From this perspective, this report analyses consumer preferences, trends, distribution channels, logistics and transportation options for selected potential roasted coffee markets, namely the European Union, Saudi Arabia, South Africa, China and the Republic of Korea. The report also reviews good practices of interest for Ethiopian authorities, focusing on policies implemented by the Colombian government and that country’s coffee roasters, who have successfully managed to expand Colombian exports of roasted coffee in recent years. Recommendations are provided to facilitate access of Ethiopian roasters to these five top destination markets.
Africa
IATF 2021 Ends with Commitment to Strengthen the AfCFTA (Afreximbank)
The second Intra-African Trade Fair (IATF 2021) has ended on Sunday in Durban, KwaZulu-Natal, South Africa, with a collective commitment to ensure that the economic stimulation triggered by the event translates into the continued strengthening of the African Continental Free Trade Area (AfCFTA).
“It is no mean feat to have secured seven sitting presidents for the opening ceremony who stayed for hours during the entire programme,” said Chief Obasanjo. “Thank you immensely for all you have done to make sure this event takes place,” he added, promising to meet everyone in Abidjan, Côte d’Ivoire, in 2023.
What are the opportunities for engineers within AFCFTA? (The New Times)
African engineers should tap into opportunities availed by African Continental Free Trade Area (AfCFTA), Rwandan Engineer Papias Kazawadi has said. Kazawadi, who is FAEO President Elect, was speaking at a Malawi conference on accelerating the road map to agenda 2063 through engineering in which he was invited to speak on a session themed “Africa’s opportunities and challenges and why African engineers must engage in AfCFTA.” The Federation of African Engineering Organisations (FAEO) is an international non-governmental organisation which represents the interests of all engineering practitioners in Africa.
Regional value chains across Africa can link markets and drive industrialisation - Patel (Engineering News)
The development of regional value chains across Africa presents an opportunity to create market linkages between regions, integrate critical supply chains and replace some products that currently being imported from outside of the continent, said Trade, Industry and Competition Minister Ebrahim Patel. “The African market represents a R7-trillion market opportunity for goods that can be manufactured on the continent. However, for these opportunities to materialise, there is a need to resolve the structural constraints that may prevent Africa and South Africa from seizing the opportunities presented,” he noted during his keynote address to the 2021 Manufacturing Indaba on November 22.
Africa must trade, invest in the continent (sardc.net)
Africa’s route to sustainable development is through creating an enabling environment for African companies to easily trade within the continent as well as invest in other African countries.
Such an enabling business environment ensures that Africa’s proceeds from natural resources such as diamonds, gold and platinum remain in the continent to finance its development agenda, instead of benefiting other economies in Europe, Asia and the US.
Currently, the business landscape is structured in such a way that African countries, which possess the bulk of natural resources trade more with the outside world than among themselves, and much of the resources are exported in their raw form, with most of the value-addition and beneficiation taking place outside the continent, thus benefiting other countries.
SA remained the destination for the most foreign direct investment projects in Africa last year (Business Report)
SOUTH Africa remained the destination for the most foreign direct investment (FDI) projects in 2020 in spite of the sharp fall in FDI in the continent due to the impact of the Covid-19. The EY Africa Attractiveness Report released yesterday showed that South Africa received the most projects in the continent in 2020, followed by Morocco and Nigeria.
On a country basis, South Africa had the highest FDI score of 31.1 points, followed by Morocco at 17.7 points and Nigeria at 17.5 points. Though South Africa attracted more projects, Nigeria received the highest capital investment, with FDI valued at $6.6 billion (R103.7 bn) in 2020. The EY report showed that FDI in South Africa remained buoyant owing to the country’s diversified economy, which is more reliant on services type sectors.
Raila roots for intra-Africa trade during Igad meeting (The Star, Kenya)
Former Prime Minister Raila Odinga has pitched for intra-Africa trade to unlock the potential in the region. Raila said trade will thrive with well established regional infrastructure. The Africa Union High Representative spoke during the Inter-Governmental Authority on Development regional infrastructure masterplan partners’ roundtable in Nairobi. The ODM leader proposed the establishment of the Africa Fund for Infrastructure to among others finance transnational projects, which cannot be factored in the national budgets. He challenged bilateral and multilateral donors to support specific projects of their choice. Raila said the eight Igad countries have natural resources that need to be exploited for the benefit of the present and future generations.
United Nations convenes workshop on measuring services’ contribution to African value chains (UNECA)
The United Nations Conference on Trade and Development (UNCTAD) and the United Nations Economic Commission for Africa (UNECA) are convening a multi-stakeholder workshop on measuring the contribution of the services sector to national and regional value chains.
The services sector, as an industry, offers opportunities for African countries to diversify their production and trade and grow their economies sustainably. This is critical at a time when the continent has embarked on the liberalization of its services sector under the African Continental Free Trade Area (AfCFTA). A major challenge that remains for African countries is how to better assess the contribution of the services sectors to the economy and fully capture their linkages to global and regional value chains. This entails addressing constraints related to data gaps on services and strengthening capacities at national and regional levels to measure the value added generated by services sectors, with a view to supporting policymaking.
Africa Investment Forum 2021: billions more expected in new investments for the continent (AfDB)
The Africa Investment Forum’s Market Days 2021, one of the biggest flagship initiatives of the African Development Bank, is poised to attract billions of dollars in investment for strategic development projects across the continent. The annual forum has come to be an invaluable platform during which the Bank successfully attracts critical investment for the continent’s infrastructure, agriculture and health care system needs among others, especially as Africa seeks to rebound from the impacts of the Covid-19 pandemic.
The growing success of the Africa Investment Forum gives credence to the exhortation to investors by African Development Bank President Dr Akinwumi A. Adesina, who has said that Africa must be respected today as the world’s investment frontier.
Digitisation, regulation and standardisation - The implications for Africa (Global Trade Review)
Trade digitisation has moved on apace, with the acceleratory impact of the pandemic on digital adoption widely acknowledged. Attitudes have changed amongst governments and private sector alike, but the challenges surrounding the development of the regulation, standardisation and interoperability necessary to enable the true global scaling of digital trade have gained sudden urgency. At Day 1 of GTR Africa, industry leaders Tedd George (Chief Narrative Officer, Kleos Advisory UK), Frank Wendt (Executive Chairman, FQX), Robin Findlay (Vice-President, Global Sales & Marketing, Surecomp), Jack Bismohun (Business Development Director, GUUD Africa) and Rahul Rastogi (CFO, Africa & Mena; Group CFO, Cocoa Beans, Olam Food Ingredients) tackled scalability challenges from an African perspective.
Africa’s aviation sector recovery prospects looking up (The East African)
The aviation industry outlook is giving better prospects of recovery for African airlines compared with those in the Middle East and Europe. An analysis by the African Airlines Association (AFRAA) shows African carriers are on a recovery trajectory, having reopened 81.3 percent of their international routes. Sub-regional growth, however, is varied. The analysis further reveals that African airlines have been growing regional fleet since 2020, allowing a deeper market penetration. Cargo capacity has also grown by 33 percent since 2019, while cargo load factors improved by nine percent from pre-pandemic levels.
AFRAA’S Secretary General Abdérahmane Berthé called on African governments and airlines to re-invent and redefine their business models for a quick industry recovery. This will involve financial support, implementing safe travel measures, using technology to define the “new normal” and removing travel restrictions.
The Southern African Development Community Region will remain a dumping ground for processed goods from other regions if it does not industrialise, President of the Republic of Malawi and SADC Chairperson, His Excellency President Lazarus McCarthy Chakwera, has said. H. E President Chakwera delivered the remarks at the official opening of the SADC Industrialisation Week (SIW) in Lilongwe, Malawi, on 22nd November, 2021. He said industrialisation was a key priority for SADC economic transformation, warning “… if we do not industrialise we will continue to be a dumping ground for products from other nations”. H. E President Chakwera underscored the need for SADC Member States to diversify their economies by moving from raw and unprocessed materials to value added and manufactured products. He said value chains, which are currently at 14%, remain the Region’s low hanging fruits for the accomplishment of the industrialisation agenda.
Industrialisation has been neglected in Malawi since 1994 – Chakwera (Malawi24)
President Lazarus Chakwera has faulted previous administrations for neglecting industrialisation in Malawi, saying many factories have been closed in the country since the dawn of multiparty democracy.
He made the remarks this afternoon when he opened the 5th SADC Industrialization Week and Exhibition under the theme “Bolstering Productive Capacities in the face of Covid-19 Pandemic for Inclusive Sustainable Economic and Industrial Transformation”. President of Mozambique, Filipe Jacinto Nyusi also attended the opening ceremony. Chakwera said Governments in the SADC region have been implementing policies that hinder the transformation of the region’s economies from raw resource dependency to value adding production through technological research.
Ministers in charge of East African Community (EAC) Affairs have recommended for consideration by the EAC Heads of States the report of the verification team on the application by The Democratic Republic of Congo (DRC) to join the Community. The Ministers further recommended that the EAC Heads of State direct the commencement of negotiations with the DRC, in accordance with the findings of the verification team.
The Ministers considered the findings of the report set out to ensure DRC is a good fit to join EAC. The report observed, among other things, the institutional frameworks in place, legal frameworks, policies, projects and programmes, areas of cooperation with other EAC Partner States and DRC’s expectations from her membership to the Community. The Council’s request to the Summit for commencement of negotiations with DRC will create a platform for in-depth discussions on modalities for harmonization of DRC’s policies and instruments to those of EAC. Matters pertaining to peace and security, language and legal systems are among the areas that will be factored in for a strategic way forward during the negotiations. Speaking following the meeting, EAC Secretary General Dr. Peter Mathuki said that DRC’s population of about 90 million has the potential to contribute to expanded market and investment opportunities. “By DRC joining, the Community will open the corridor from the Indian Ocean to the Atlantic Ocean, as well as North to South, hence expanding the economic potential of the region,” he said.
Egypt Officially Takes over the Chair of COMESA (COMESA)
Egypt is the new Chair of the COMESA Heads of State and Government also known as the COMESA Authority. President Abdel Fattah El-Sisi took over from President Andry Rajoelina of Madagascar at the opening of the 21st COMESA Summit underway in Cairo. Heads of State and representatives are attending the Summit physically and virtually. With the handover, Egypt will now chair all COMESA policy organs and provide leadership to the regional bloc in the implementation of the regional integration agenda for the next one year.
Activists call out Nigeria, African govts., financiers, firms over fossil fuel (BusinessAMLive)
Climate activists have called out Nigerian and African governments, financiers and fossil fuel companies over their continued involvement in fossil fuels projects, which wreak havoc on communities and ecosystems across Africa, not to mention the harsh climate impacts they occasion. Africa, though the least emitter of greenhouse gas (GHG) of about 4 percent, ironically suffers the most from the vagaries of climate change.
As the UN climate talks ended in Glasgow on November 12, energy stakeholders in Africa later congregated in Cape Town for the Africa Energy Week. The event was met with protests by climate activists in Cape Town, who called out African governments and fossil fuel companies for their continued support to and development of fossil fuel projects, which they said wreak havoc on communities and ecosystems across Africa.
The activists, who gathered under the auspices of Afrika Vuka, a movement of citizens across the African continent, aimed at uniting campaigns and movements working to end the age of fossil fuels in Africa and pushing for the move to clean, renewable energy, called for a shift away from fossil fuels and a gradual transition to renewable energy and green economies, a move that is key to keeping global heating below 1.5 degrees and limiting climate change.
In the spotlight: how to make Africa’s reliance on charcoal and firewood more sustainable (ReliefWeb)
Of all the wood produced every year in sub-Saharan Africa, 90 percent is used as fuel, posing a major sustainability challenge. Woodfuel, primarily firewood and charcoal, is the main source of energy for cooking for two-thirds of households and is a critical element in maintaining food security. Millions of households depend on woodfuel production to make a living, but heavy reliance on it makes for social, economic, environmental and health concerns. With such complex issues, a broader approach is needed. The Food and Agriculture Organization of the United Nations (FAO) is supporting an international conference that starts today and brings together woodfuel producers, forest managers, forest and energy decision makers, environmentalists, technological innovators, scientists and academics, policy makers, civil society and government institutions in Kumasi and online. Together, they will take stock of the challenges and learn from one another to move the sector forward towards sustainability, without compromising livelihoods which are reliant on it.
The African Development Bank played a critical role in supporting millions of people across the continent, affected by the impact of the Covid19 pandemic in 2020. This is according to its latest Annual Development Effectiveness Review released on Tuesday. The pandemic caused fiscal deficits to double and indebtedness to rise sharply, reducing the capacity of African countries to invest in economic recovery. The African Development Bank responded swiftly with a Covid-19 Response Facility that provided $3.6 billion in emergency budget support. The funding went into key areas such as health, social protection, and economic assistance, benefitting 12.3 million vulnerable households across 31 countries.
The Annual Development Effectiveness Report notes that small and micro-enterprises supported by the Bank generated revenues of $2 billion, helping them weather the pandemic in 2020. Through its Technologies for African Agricultural Transformation (TAAT) program, the Bank’s support for food security and agricultural development reached 11 million farmers in 28 countries and avoided $814 million in food imports.
In the Race to Vaccinate Sub-Saharan Africa Continues to Fall Behind (IMF Blog)
Sub-Saharan Africa is losing the race to vaccinate its population against COVID-19. As of November 15, only about 4 percent of the population in sub-Saharan Africa has been fully vaccinated, up from merely 1 percent three months ago. It took 27 and 56 days to achieve the same milestone in advanced economies and other emerging markets and developing economies, respectively. The World Health Organization’s target of vaccinating 10 percent of population by end-September was reached by only five sub-Saharan African countries. Only a handful of countries in the region are expected to reach a target set by the IMF, World Health Organization, World Trade Organization and World Bank to vaccinate 40 percent of the population in all countries by the end of 2021.
Conference On Practical Solutions For Sustainable Devt In Africa Holds In Lagos (Leadership)
A continental conference where practical solutions to some of the challenges confronting Africa as continent will be discussed, has been slated for December 5 to 7, 2021 in Nigeria. The event, which will take place in Lagos, is meant to discuss key sustainable development issues affecting investment, innovation, youths of Africa and their traction in the developmental matters. A statement released on Monday in Abuja by the Jet Age Africa coordinator, Amb. Young Piero, said the continental event will also honour notable leaders from public and private sectors and young innovators, who have demonstrated profound zeal and contribution to the advancement and sustainable development of the African continent in their various specialised fields of endeavor.
Côte d’Ivoire Joins Countries Aligning UN SDGs with African Union Targets in Policy Planning Tool (UNECA)
Côte d’Ivoire has become the latest African country to receive training in the Integrated Planning and Reporting Toolkit (IPRT) from the United Nations Economic Commission for Africa (ECA). The online instrument is used to support African countries in structuring National Development Plans (NDPs) alongside goals, targets and indicators of both the UN’s 2030 Agenda for Sustainable Development and the African Union’s Agenda 2063. “Our country will begin the implementation of its new NDP 2021-2025, which capitalizes on the achievements of the previous plan, and takes up the challenge to address and accelerate the achievement of the Sustainable Development Goals and Agenda 2063,” Côte d’Ivoire’s Minister of Planning and Development, Nahaoua Yeo, told attendees. “This training reflects the government’s commitment to mobilize all expertise available, to equip all national actors in charge of planning and monitoring and evaluation with the technical tools for optimal monitoring of public policies with regional and international sustainable development agendas.”
Infrastructure surge marks strong spell for construction industry (African Review)
According to a recent report on by Mordor Intelligence, the African construction market was valued at around US$5.4bn in 2020 and is expected to register a CAGR of 7.4% between 2021 and 2026. While Covid-19 did hamper development Africa’s construction market is rebounding better than most industries owed, in part, to an abundance of infrastructure projects being undertaken across the continent. A construction report in the latest issue of African Review charts the construction industries growth, examines some of the most impressive construction projects which are taking shape and records a discussion with Tolga Ural, regional director at Liugong Dressta Machinery, Africa, Middle East, Asia Pacific & Australia as he describes his company’s experience on the continent over the last year.
US Flags Africa As Major Geopolitical Player (The New Dawn Liberia)
US Secretary of State, Anthony J. Blinken says the United States firmly believes that it’s time to stop treating Africa as a subject of geopolitics and start treating it as the major geopolitical player it has become. During his two-day working visit to Nigeria as he continued his tour of Africa which began in Kenya and is expected to conclude in Senegal, Mr. Blinken praised institutions like the African Union, ECOWAS, SADC, IGAD for the larger roles they play in global issues and asked that they be given greater voices in global debates. “The US knows that, on most of the urgent challenges and opportunities we face, Africa will make the difference,” Mr. Blinken said on 19 November 2021 at the Main Hall of the ECOWAS Commission as part of the series of engagements. “We can’t achieve our goals around the world – whether that’s ending the COVID-19 pandemic, building a strong and inclusive global economy, combating the climate crisis, or revitalizing democracy and defending human rights – without the leadership of African governments, institutions, and citizens,” he added.
UK businesses, not African countries will profit from new trade plans (The Africa Report)
They are a means to enable developing countries “to diversify their exports and grow their economies”, to help “deliver a greener future”, while at the same time allowing British households and businesses to benefit from lower prices and more choice. But the reality is the greatest winners will be British business. Here’s how. According to Amanda Milling, UK FCDO Minister of State: “In 2020, the UK imported more than £30bn ($40.1bn) in goods and services from developing and least developed countries with preferential trading arrangements, supporting their growth and poverty reduction.”
How Might The Pandemic Increase Trade Between Africa And China? (Africa.com)
The recent COVID-19 pandemic has had a severe impact on the global economy. In fact, some research suggests that the world could lose up to $8.5 trillion dollars in revenue during the next two years. Still, we need to remember that every cloud has a silver lining. Some regions of the world may benefit from the current crisis. This is primarily the result of changing patterns of trade. Experts believe that the African continent should begin trading with Asia more and less with regions such as the European Union and the United States. Why might this soon come to pass?
BRI boosts Africa ties amid pandemic (Chinadaily)
The COVID-19 pandemic has not only changed the world. It has also made us realize that since we are all connected to each other, we need to rise above our nationality, race, ethnicity, religion and level of development to uphold the common cause of humanity. The pandemic has also highlighted the significance of the China-proposed Belt and Road Initiative in global health and information and communications technology. China has been helping African countries to develop in these two sectors through the Health Silk Road and the Digital Silk Road.
China’s decision to help African countries to produce vaccines locally under the Health Silk Road framework shows its intention to stabilize the global economy and help build a world where compassion and empathy are the order of the day. But to make the efforts successful, other countries have to meet China halfway and join hands to promote inclusive economic growth. As for the Digital Silk Road, the pandemic-induced lockdown changed consumer behavior, and social distancing measures led to an expansion of e-commerce transactions. As promised, China has been taking measures to deepen Digital Silk Road e-commerce cooperation with 22 partner countries.
International
International trade statistics: trends in third quarter 2021 (OECD)
G20 merchandise trade growth in value terms saw a marked slowdown in the third quarter of 2021, albeit levels remain at record high partly reflecting strong commodity prices. Surging shipping costs and a recovery in travel spurred faster growth in trade in services, with exports for the G20 nearing 2019 levels. In Q3 2021 international merchandise trade for the G20 plateaued at a record high, following four quarters of sustained growth. G20 merchandise exports and imports increased by 0.9% and 0.4% in Q3 2021 compared with the previous quarter, as measured in seasonally-adjusted current US dollars. Growth in services exports and imports for the G20 is estimated at around 5.1% and 5.8% in Q3 2021, respectively, compared to the previous quarter and measured in seasonally adjusted US dollars.
Tackling Trade (Economic Times)
Ahead of the crucial ministerial meeting of the World Trade Organization (WTO) in Geneva next week, its 164 members are trying to thrash out an outcome to show that the multilateral trade agency is still relevant, even as they guard their own interests. The 12th ministerial conference (MC12) of the WTO will take place from November 30 to December 3.
WTO, IMF launch Vaccine Trade Tracker
The new platform builds on the work of the WTO Secretariat information notes on COVID-19 and world trade and the IMF Staff Discussion Note — A Proposal to End the COVID-19 Pandemic. The portal provides an array of data on total vaccine supply to date, exports by producing economy and by supply arrangement type, imports by income group and by continent, supply by manufacturing economy and vaccine type, supply to continents and vaccination status. The vaccine tracker draws information from the public domain, the COVAX Global Vaccine Market Assessment, the United Nations Children’s Fund (UNICEF), Duke Global Health Innovation Center, Airfinity, Our World in Data, the World Bank Group, the Asian Development Bank and the African Vaccine Acquisition Task Team (AVATT).
The 2022 edition of the Harmonized System Nomenclature is now available online. What’s new? (WCO)
As of 18 November 2021, the online version of the 2022 edition of the Harmonized System Nomenclature is available through the WCO Website to all HS users. The HS 2022 edition, as the world’s global standard for classifying goods in international trade, will enter into force on 1 January 2022. Used by over 200 countries and economic or Customs unions as the basis for their Customs tariffs and for trade statistics, as well as by international organizations such as the United Nations Statistical Division (UNSD) and the World Trade Organization (WTO), the Harmonized System (HS) Convention currently has 160 Contracting Parties, making it the WCO’s most successful instrument to date.
The 2022 edition of the HS Nomenclature includes significant changes with 351 sets of amendments (including some complementary amendments).
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National
THE Medium-Term Budget Policy Statement 2021 appreciates building a prosperous society requires much higher levels of economic growth, supported by structural reforms, improved state capacity, and sustainable public finances. The aim of structural reforms is to boost an economy’s competitiveness, growth potential and ability to adjust. This is consistent with President Cyril Ramaphosa’s emphasis “We are determined not merely to return our economy to where it was before the coronavirus, but to forge a new economy in a new global reality.” Accordingly, the Economic Reconstruction and Recovery Plan identified eight key areas of priority including infrastructure roll-out and localisation through industrialisation.
Transnet National Ports Authority launches new ports operational model to reduce costs (IOL)
Transnet National Ports Authority (TNPA) has acknowledged that its port charges needed to be reviewed following concerns from port users and stakeholders including the automotive sector that the cost was becoming prohibitive.
At the launch of TNPA’s operational model on 18 November, officials said several studies, some involving the National Association of Automobile Manufacturers of South Africa (Naamsa) and another by the utility in collaboration with the University of Stellenbosch, were being engaged to help it understand means of reducing the cost structure.
Kenya, S. Africa to discuss post-Covid revival as Ramaphosa hosts Kenyatta (The East African)
The revival of tourism post Covid-19 is set to dominate talks when South African President Cyril Ramaphosa hosts his Kenyan counterpart Uhuru Kenyatta for a three-day official visit. The two countries’ economies contracted after being pummelled by the impact of the coronavirus crisis that hit key sectors like tourism.
“Memoranda of Agreement on cooperation in International Cooperation and Relations, Home Affairs and Tourism are expected to be signed,” the Presidency in South Africa said in a statement. The two heads of state will also address the South Africa-Kenya Business Forum to further explore new areas of economic, trade and investment cooperation.
Tanzania draws up plans for avocados after South Africa milestone (The Citizen)
Dar es Salaam. The government yesterday explained why the decision by South Africa to give market access to avocados produced by Tanzanian farmers was an important step in boosting the economy. It also said that it would continue to take measures to ensure that more international markets are accessed on a sustainable basis in the best interest of Tanzanian farmers and the nation.
A letter from the South African Plant Health’s acting director Jan Hendrik Venter dated November 16, 2021 says the decision was reached after a virtual bilateral engagement. “On November 9, 2021, the National Plant Protection Organization of Tanzania (NPPOT) provided a pre-recorded video presentation to the NPPOZA to verify and pre-test pest risk management practices in order to allow authorisation of avocados from Tanzania to South Africa,” reads the letter to Tanzanian authorities in part.
“The moment we supply the product, South Africa faces a huge demand for the product to the extent of importing from Spain. But, because of the proximity, Tanzania stands at a better position to benefit,” he said.
KAM pushes for consumption of locally made products, launches the Changamka Kenya Shopping Festival (HapaKenya)
Manufacturers have called on Kenyans to support the local economy by purchasing locally produced goods and products. The Kenya Association of Manufacturers (KAM) Chairperson, Mucai Kunyiha made the remarks at the official launch of the Changamka Kenya Shopping Festival. He stated that the event will build producers’ confidence in the quality of their products.
On her part, KAM CEO Phyllis Wakiaga pointed out that local producers have ramped up their efforts to build their capacity to serve both the local, regional and international markets. “We intend to boost our members’ technical ability and knowledge about the nature and quality of in order to build Kenyan businesses to access more markets,” she said, adding that the association is keen to support emerging firms to penetrate the rest of the African region. This will increase intra-African trade under the African Continental Free Trade Area (AfCFTA), the Middle East and Europe. This will expand the Kenyan economy by at least Ksh. 300 billion if done successfully.
Betty Maina, the Cabinet Secretary for Industrialization, Trade and Enterprise Development noted that the Changamka Festival lends itself to the broader national Buy Kenya, Build Kenya strategy designed to position Kenya as an export-oriented growth economy while at the same time maintaining a level of domestic consumption sufficient to support the local value chains.
Manufacturers say not yet out of Covid woods despite growth (Business Daily)
The second quarter growth numbers attributed to the manufacturing sector was inflationary driven and not increased productivity, players in the sector have said, arguing that the industry is still hurting from the Covid-19 pandemic. The sector lobby, the Kenya Association of Manufacturers (KAM), says the strong growth in the three months to June was mainly due to increases in prices, triggered by supply restraints. Data published by the Kenya National Bureau of Statistics (KNBS) show the sector’s real GDP – that does not factor in inflation - grew by 9.6 percent in the quarter to June compared to a contraction of 4.7 percent in the same period of 2020.
“The sector has been growing because of the value and because things are getting more expensive. It is not necessarily the volume that is going up. It is just the price of things going higher and higher,” KAM chairman Mr Mucai Kuhinya said.
Musina ring project will benefit Zim, SA (SAnews)
The socio-economic success of Africa depends on the commitment of African countries to invest significantly in the development of their infrastructure. South Africa is one of the like-minded countries on the continent that has embarked on infrastructure projects as a catalyst for economic growth.
In the next few days, the Minister in The Presidency, Mr Mondli Gungubele, is expected to visit one of the near-completed road infrastructure projects in Musina, Limpopo.
The R640-million Musina Ring Road project is scheduled to be opened early in 2022. It will divert the Nl road around the town of Musina in Limpopo to facilitate a free flow of traffic to the Beitbridge border with neighbouring Zimbabwe. The national road upgrade is led by the Department of Transport and the South African National Road Agency (SANRAL).
Zimbabwe to prioritize policies on value chains across all sectors to spur industrialization (UNECA)
ECA Sub-Region Office for Southern Africa supported a two-day workshop to work with Zimbabwean experts to develop an Action Plan on alignment and harmonization of regional and national frameworks on industrialization in Zimbabwe. The action plan is being developed as part of support under the United Nations 12th Tranche project which aims to accelerate industrial development and economic integration in Southern Africa by enhancing the capacity of regional member States to develop and implement harmonized natural-resource based industrialization policies, frameworks and strategies. To anchor the development of action plans and the support to member States, SRO-SA commissioned an analytical study on Alignment and harmonization of regional and national frameworks on Industrialization, and National Domestication of Regional Strategies and Policies to support Industrial Development in Southern Africa, focusing on Malawi, Zambia and Zimbabwe.
Cape Verde Opens Embassy In Nigeria, Calls For Increased Trade Relations (The Will)
Cape Verde on Saturday pledged better cooperation and increased trade relations with Nigeria. The Minister of Cape Verde, Jose Silva, who made the pledge in Abuja on Saturday at the official opening of the first ever Cape Verdean Embassy in Nigeria, stressed that tourism and transportation would top the areas of cooperation. Speaking to newsmen after the official opening of the Embassy, Silva said the inauguration of the embassy was a great step toward better cooperation and regional integration. “The opening of this embassy means to strengthen the relationship between Cape Verde and Nigeria both politically and culturally. “Also, we will strengthen our relationship with Cape Verde as well as its integration within the ECOWAS region.
AfCFTA: Ghana must accept biotech products (BusinessGhana)
Dr Ahmed Alhassan Yakubu, a former Deputy Minister of Food and Agriculture has asked Government to, as a matter of urgency, operationalise the legal framework for biotechnology products in the country to boost commercial production. This is because, Government would not have any excuse not to accept the introduction of biotech products in to the Ghanaian market if the African Continental Free Trade Area (AfCFTA) became fully operationalised. Dr Yakuku, who was talking to the media on the sidelines of a three-day training for Open Forum on Agricultural Biotechnology (OFAB) coordinators in Accra on Monday, said the framework for sub regional and regional trade made the movement of biotech products legal, adding that with the coming on board of AfCFTA, more biotech products would influx the Ghanaian market.
Trade exchange between Egypt, COMESA countries records $3bn in 2020: Cabinet (Daily News Egypt)
The Information and Decision Support Center of the Egyptian Cabinet has released a study on the trade relations between Egypt and the COMESA community, whose membership comprises 21 African countries. The centre said that COMESA is among the most important trading partner for Egypt within the African continent. The volume of trade exchange between Egypt and COMESA countries recorded about $3bn in 2020, accounting for about 60% of the total trade exchange between Egypt and the African continent last year. The centre also said that Egypt had a trade surplus of $1.4bn from its business relations with the COMESA countries during 2020.
PM: Govt following up on procedures to facilitate movement of goods with African states (Egypt State Information Service)
Prime Minister Mostafa Madbouli said that the government is constantly following up on the procedures adopted to facilitate the movement of goods between Egypt and fellow African countries, pointing out to the paramount importance attached to boosting Egyptian exports in light of the quality and price competitiveness of national products and commodities. All possible means of support are provided for Egyptian exports to open up new markets for them, Madbouli added.
Malawi’s first solar power plant goes into operation (Pumps Africa)
Malawi’s first solar power plant is now operational. President of the Republic of Malawi Lazarus McCarthy Chakwera announced that the project was successfully completed under a public-private partnership (PPP). Dubbed ‘Salima solar power plant’ the facility, which has a capacity of 60 MWp, is the first solar power plant to be connected to Malawi’s national electricity grid. “This is a model for future projects in several ways, in particular, it demonstrates that Malawi is an attractive destination for private sector investment in energy,” said President Lazarus McCarthy Chakwera.
Intra-African Trade Fair 2021 highlights
IATF 2021 closes with $36bn recorded deals (National Accord)
The Intra-African Trade Fair 2021 (IATF 2021) came to an end on Sunday in Durban, South Africa, recording $36 billion deals during the week long event. The News Agency of Nigeria (NAN) reports that the event held physically in Durban, South Africa, while some other participants joined virtually from different parts of the world. Speaking during the closing ceremony, Mrs Kanayo Awani, the Managing Director, Intra-African Trade Initiative in Afreximbank, said: “Let me just announce that as of now, we have $36 billion in deals concluded at IATF 2021.
Afreximbank expands its support for African trade with new multi-million-dollar commitments made at IATF2021 (Afreximbank)
African Export-Import Bank (Afreximbank) on 18 November 2021 in Durban, South Africa, further consolidated its position as a leader in funding the development of trade infrastructure across Africa with the signing of four major business transactions on Day Four of the Intra-African Trade Fair 2021 (IATF2021). In a transaction with Fidelity Bank, Afreximbank agreed to a US$10 million facility to Fidelity Bank to enable it finance trade and trade-related transactions across the continent. Proposed as a one-year revolving facility, with funds being utilised for short-term trade transactions on a case-by-case basis, the facility will be applied to projects, such as eligible exports, value-adding exports and eligible imports, in critical sectors, such as manufacturing, agriculture, power and energy.
Afreximbank also entered into a Memorandum of Understanding with Bestaf Exploration and Production Ltd, for US$1 billion to be used for the development of assets and requisite facilities to monetise the gas in OML 86 and 88 through a financial and technical service agreement with the Nigerian National Petroleum Corporation.
In a third signing, Afreximbank agreed to issue a line of credit to Senegal’s Banque National de Developpement Economique as part of efforts to promote factoring across Africa. The facility supports Afreximbank’s factoring strategy which is structured around supporting financial intervention, legal and regulatory frameworks, awareness and capacity building, services and the development and maintenance of strategic partnerships.
Nigeria, Africa account for 2% of global trade, as continent’s infrastructure deficit hits $100b (The Guardian Nigeria)
Africa’s share of global trade remains low at two per cent, Secretary General, African Continental Free Trade Area (AfCFTA), Wamkele Mene, has said. Besides, a total of $36 billion transactions were sealed at the end of the 2021 Intra African Trade Fair (IATF). Speaking at the closing ceremony of the event in Durban, South Africa, Mene said the continent might not record meaningful growth if it remains overly dependent on export of raw commodities. He also expressed worry on Africa’s infrastructural deficit, currently at $100 billion, stating that this has continued to impede the continent’s trade growth. He insisted that Africans must shift from raw materials export to manufactured or finished products to accelerate industrial base and diversify exports.
Regional Farmers Risk Losses Over KQ, Ethiopia Airlines Fight (Taarifa Rwanda)
Tshifhiwa Modiba, managing director of Anwa Laboratoria which manufacture health products, said his company signed numerous deals in the fair. ”We have had fruitful meetings with businesspeople from Algeria, Egypt, Zimbabwe, Lesotho, and Rwanda who want us to set up plants in their countries and manufacture there,” she said.
The chairperson of the IATF21 Advisory Council Olusegun Obasanjo said his “heart is full of joy” over the achievements made at the trade fair. He stated that despite the challenges of COVID-19 the show was very successful. ”We are celebrating the incredibly exciting event … with so many deals being concluded. Many businesses did take advantage of the collaboration and networking opportunities,” he said. Wamkele Mene, secretary general of the African Continental Free Trade Area (AfCFTA) Secretariat, said the continent has huge infrastructure deficit which could be opportunities. He urged Africans to take up the opportunities to make AfCFTA a success. ”We now have opportunities to reduce and eliminate barriers to trade and investment in the continent. There is a high level of political and legal commitment Africa has never seen,” he added.
Dismantle trade barriers to grow Africa’s economy, Dangote urges leaders (Nairametrics)
African leaders have been urged to dismantle trade barriers stifling their individual countries, in a bid to ensure smooth flow of goods and services, with a corresponding impact on economic growth and development across the continent. The call was made by the Group Chief Commercial Officer of Dangote Industries Limited, Mr Rabiu Umar, during an interview aired on The Morning Show, a breakfast programme of the Arise News Channel, on the sidelines of the just-concluded Intra-African Trade Fair (IATF) held in Durban, South Africa. Rabiu, who represented the Dangote Group, a platinum sponsor of the trade fair, also called for reforms at the various ports across Africa. He noted that “bringing down these barriers will mean that goods and services can move much more freely on the continent from one country to another.”
Digital skills imperative for African women, youth SMEs traders (Chronicle)
EMBRACING digital technology skills must be a top priority for African women and youth start-up businesses as they navigate the widening export market opportunities within the continent and beyond, says the International Trade Centre (ITC). ITC executive director, Pamela Coke-Hamilton, said more needs to be done to capacitate women and youth entrepreneurs with export development skills and market intelligence aspects. “There are several skills needed, but one of the most important is digital. Going digital is now critical for small firms,” she said in an interview.
Africa cannot continue to be a dumping ground for used vehicles – Erwin (Moneyweb)
Africa cannot continue to be the receptacle for dumped used vehicles from Europe, the US and Japan. That’s the warning from former South African finance and trade and industry minister Alec Erwin. “If we do that, it’s actually unsustainable because it is causing increasingly big balance of payments problems. Secondly, it’s causing significant environmental damage and thirdly it’s restricting our industrialisation. “So we need to move forward on this,” he said.
Africa
Advancing Africa’s industrialisation through regional integration (ODI)
Taking recent World Bank World Development Indicators (WDI) data for the subset for sub-Saharan African countries, the share of manufacturing in GDP in 2020 was 12%, the same as it was in 2002, but up from as low as 9.2% in 2010. Despite the downturn in 2020, annual growth in real manufacturing value added was 3.3% over the decade to 2020 (up from 3% in the previous decade), significantly better than the 2.8% (and 1.9% respectively) annual growth for the world as a whole. Some countries have really transformed their industrial sector in recent years. Unfortunately, though, conflict may now halt Ethiopia’s substantial garment manufacturing based on industrial parks and duty-free access to the US, which has now been withdrawn.
The AfCFTA entered into force in May 2019. Intra-African trading under AfCFTA officially began in January 2021. To benefit from AfCFTA liberalisation, many countries such as Nigeria and Ghana are developing much needed complementary industrialisation policies to develop regional value chains in automotives, garments, etc. In addition, countries need to raise their game on standards, customs procedures and other trade facilitation measures, as vital complements to make use of market access opportunities.
Full implementation of deep integration provisions will benefit African economies, although adjustment support is required for specific segments such as small countries, import competing sectors, small and medium sized enterprises or women producers. A more integrated Africa that is more open for business will also attract investment from outside the continent.
AfCFTA: Why Nigeria May Lose Out in Agro Export (This Day)
The African Free Trade Area (AfCFTA) has the potential to lift millions of people out of poverty and end food insecurity on the Continent, but Nigeria has not been positioned as the ‘real’ stakeholder for agro-export under this agreement, MD/CEO, Abx World Limited, Captain John Okakpu has said. Okakpu who dropped the hint over the weekend, stressed that the country participation and gain from AfCFTA, in the agricultural value chain, depends on the effectiveness and implementation of government policies, especially in the agricultural sector.
“If you look at the trend, Africa exports agricultural products such as tomatoes, onions, vegetables, cocoa, coffee, cotton, yam tobacco and spices to the nations of the world to earn significant foreign exchange. But the continent imports important foods such as cereals, vegetable oils, dairy products and meat in large quantities. Now, our neighbouring countries have positioned themselves to benefit from AfCFTA by building robust logistics and cost-effective export systems. So, looking at it critically, our logistics cost cemented our losses on AfCFTA unless we address it now,” Okakpu said.
Connecting African markets and people: Streamlining regional trade and free movement protocols (ECDPM)
Connecting people and markets within and between African countries and regions is a longstanding aspiration and a core part of the African Continental Free Trade Area (AfCFTA). In this line, the AfCFTA aims to (1) address the challenge of multiple and overlapping regional economic community memberships and speed up regional and continental integration processes, and (2) contribute to the movement of people, which aligns with the African Union Free Movement Protocol (AU-FMP). This paper discusses these two objectives and looks at how the AfCFTA and the FMP alter state relations on trade and movement of people, and how AfCFTA implementation will interact with existing regional agendas and initiatives. It looks at policy statements and the political economy dynamics likely to shape integration and cooperation efforts, and helps identify policy priorities for African stakeholders at the national, regional and continental levels, as well as their external partners.
Africa’s economic transformation: implementing the AfCFTA (ODI)
Africa’s economic transformation is a critical component to improve Africa’s living standards and an increase in intra-Africa trade through the implementation of the African Continental Free Trade Area supports transformation on the continent. The event, organised under the programme Supporting Investment and Trade in Africa (SITA), aims to create a space to present and discuss how the negotiations and implementation of the AfCFTA can contribute to Africa’s economic transformation and better outcomes in key sectors, such as trade, green recovery and digital transformation. During the event, the speakers will consider the practical implications for state governments and development partners, highlighting the support available to those involved in its implementation at national level and the key opportunities ahead.
EAC registers trade surplus with UK despite Covid-19 (The Citizen)
Despite the devastating impact of Covid-19 pandemic last year, the East African Community (EAC) bloc recorded a rare trade surplus with the United Kingdom (UK). While the EAC imported goods worth $503.5million in 2020, it exported goods valued at $523.9 million to the UK, one of Europe’s largest economies. Exports from the six nation EAC bloc increased by 14 percent last year from $458million in 2019, according to the East African Business Council (EABC).
UK Prime Minister’s Trade Envoy to Tanzania Mr. John Lord Walney said at the EABC offices that the UK was committed to revitalize aid for trade relationships with the EAC bloc “as the region has vast endowments and opportunities”. He commended the business captains in their relentless efforts to break the notorious trade barriers that could minimize the cost of doing business.
Optimism abounds as Eastern Africa’s economic recovery gathers pace (UNECA)
About 100 decision-makers and economic experts attended the 25th session of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) organised by UN Economic Commission for Africa in Eastern Africa to discuss how countries should strengthen resilience for a strong recovery and how to attract investments to foster economic diversification and long-term growth in Eastern Africa”.
Speaking at the meeting, Ms Vera Songwe, the Executive Secretary of the UNECA, stressed how in 2020, the economy of Eastern Africa shrunk for the first time in decades. She said that the agricultural sector was not spared, facing weather-related shocks and the biggest desert locust invasion in 70 years. Yet she emphasised her optimism, saying that early projections suggest that the region’s economy will expand by 3% this year, with certain economies such as Djibouti, Eritrea, Rwanda and Uganda rebounding by over 4%. She also noted the progress that had been made towards ratification of the African Continental Free Trade Area (AfCFTA) and affirmed ECA’s continued support to the implementation of national strategies.
UNECA and AUDA–NEPAD renew partnership to enhance sustainable growth in Africa (Sierra Leone Telegraph)
The Economic Commission for Africa (ECA) and the African Union Development Agency-New Partnership for Africa’s Development (AUDA-NEPAD) have signed a Memorandum of Understanding (MoU) to enhance their partnership and collaboration to accelerate the achievement of Africa’s Agenda 2063 and the 2030 Sustainable Development Goals (SDGs). It will be a living document that provides deeper cooperation between ECA and AUDA-NEPAD teams to work together, especially as the six areas of cooperation identified in the MoU are in line with what the two organizations have been doing together.
UN Under-Secretary-General and ECA’s Executive Secretary, Vera Songwe, said the MoU was a demonstration of how much the two organizations can pool together and raise their ambitions to achieve Africa’s transformation Agenda 2063 and the 2030 Agenda on Sustainable Development. The objectives of the MoU are to implement the joint work programme for 2021-2023 in six broad priority areas of the organizations’ respective mandates and function; build resilience for sustainable development in Africa as per Agenda 2063 and Agenda 2030; and explore any strategic initiatives that might not be part of ongoing mandate but justified by the importance of unexpected events in line with the six broad priority areas.
Sky wars: Uganda, Tanzania, Rwanda carriers expand as Ethiopian, KQ falter (The East African)
As East Africa’s leading carriers Ethiopian Airlines and Kenya Airways grapple with financial and politically instigated crises, regional carriers Air Tanzania, Uganda Airlines and RwandAir have laid out plans to eat the big boys’ lunch. This came to light at the just-concluded 2021 Dubai Air Show, where Uganda Airlines and Air Tanzania signed deals that prepare them for the battle for the skies with ET and KQ. They signed aircraft and spare parts supply deals with leading manufacturers Airbus and Boeing to ensure seamless services in the region and beyond. In the meantime, RwandAir has signed a codeshare agreement with Qatar Airways that allows the Kigali-based airline to use the Qatari carrier’s huge network to bring competition right to the doorsteps of ET and KQ.
The SADC Secretariat, the Republic of Malawi and the SADC Business Council, will be hosting the 5th annual SADC industrialisation Week (SIW) from 22-26 November 2021 at Bingu Wa Mutharika International Convention Centre in Lilongwe, Malawi. The theme for this year is ‘Bolstering Productive Capacities in the Face of COVID 19 Pandemic for Inclusive, Sustainable Economic and Industrial Transformation’. This event’s recommendations and outputs will be included in the SIW declaration statement and presented to the SADC Council of Ministers.
Egypt, COMESA Jointly Announce Summit Plan (COMESA)
A joint press conference with Secretary General of the Common Market for Eastern and Southern Africa (COMESA) Chileshe Kapwepwe, Egyptian Minister of Trade and Industry Nevine Gamea has announced that Egypt’s New Administrative Capital will host the 21st COMESA Heads of State and Government Summit next Tuesday, Nov 23, with in-person and virtual participation of member countries and heads of African economic blocs. Held under the theme: “Building Resilience Through Strategic Digital Economic Integration,” the summit aims to rally the 21 member states on how to safeguard and advance the COMESA regional integration agenda using digital platforms to facilitate doing business and enhance their resilience to face the economic repercussions of the Covid-19 pandemic.
Accra to host 65th Council Meeting of ARSO (Myjoyonline)
The Government of Ghana through the Ghana Standards Authority (GSA) will host the 65th Council Meeting of the African Organization for Standardization (ARSO) in Accra, slated for November 24 and 26, 2021. The meeting comes amidst calls to accelerate the harmonisation of standards in the region which is seen as crucial to achieving the objectives of the African Continental Free Trade Area (AfCFTA).Council members from across ARSO member states will gather at the three-day event as they seek to facilitate seamless intra-trading through harmonized quality infrastructure.
The Council meeting has been themed: The Beginning of Trade among African countries under the AfCFTA Agreement: Boosting Intra-African trade within the African Single Market through “One Standard – One Test – One Certificate – Accepted Everywhere.”
PIDA Week 2021 (Virtual PIDA Information Centre)
The 7th PIDA Week takes place amidst the backdrop of continued global economic and social uncertainty occasioned by COVID 19 pandemic. The prolonged COVID 19 pandemic has had devastating multifaceted economic and social consequences that have disproportionately affected Africa on human development indicators, economic interdependence, growth and resilience patterns. In response, African Governments have prioritized their spending commitment mainly focusing on vaccinating their population and building resilience considering the pandemic, therefore increasing their recurrent expenditure. This could impact the annual gap in infrastructure investment in the short to medium term. The pandemic has also had a negative impact on cross-border trade. African Union has also been affected with member states were forced to shutting down borders and, in some cases, applying trade restrictions that have affected supply chains inbound and outbound within the regions and as a result recording trade deficit in volumes, exposing Africa’s over-dependence on external supply chains.
The event will focus on how Africa can lead the way in the delivery of infrastructure in a post-COVID era, supporting the economic and social imperatives of the continent in the digital age. It is expected that once the pandemic is successfully contained, the focus will need to shift from crisis management to assisting to adequately invest in infrastructure for development, as well as preventing and mitigating the impact of future outbreaks.
Modernising statistical systems must pay attention to “data value chain” that is data collection, publication, uptake and impact (African Union)
To sustain the statistical development momentum Africa has generated over the recent years, there is need for enhanced data governance, transformational leadership, acquisition of new knowledge, capabilities as well as strategic skills including in data science, Artificial Intelligence (AI) and Machine Learning (ML), for the continent to actualize the new “data ecosystems” and to unlock the full data potential in Africa. This should be implemented in recognition of the increased demand for data in terms of quantity, scope, quality and disaggregation. This increase in data demand goes beyond what the traditional National Statistical Systems are able to provide thus the urgency to modernize and transform National Statistical Systems into broad data ecosystems that span the entire data value chain, driven by national priorities and underpinned by the Fundamental Principles of Official Statistics as stipulated in the African Charter on Statistics, the Strategy for the Harmonization of Statistics in Africa (SHaSA) among other existing policy frameworks such as the African Data Consensus.
African Growth and Opportunity Act eligibility requirements under review in three African countries - Global Compliance News (Global Compliance News)
In November, the United States announced that Ethiopia, Guinea and Mali would be terminated from the African Growth and Opportunity Act (AGOA) trade preference program, unless they took urgent action to meet eligibility criteria by 1 January 2022. The three countries listed were Guinea, Mali and Ethiopia. The US administration cited unconstitutional changes in governments in Guinea and Mali and human rights violations in Ethiopia, due to conflict in the country, as reasons for the termination. The statement announced the intention to provide all three countries with a clear benchmark and pathway towards reinstatement so that valued trading partnerships could be resumed.
The United States of America’s Secretary of State, Anthony J. Blinken, intimated the Nigerian youths, young entrepreneurs and Media on the strategy of the US-Africa policy, today, 19th November, 2021 at the main Hall of the ECOWAS Commission. Mr. Blinken, in his speech, thanked, Vice President Koroma for the very kind introduction and for the leadership roles ECOWAS plays not just today, but every single day across the sub region. He praised ECOWAS, for the vital contributions across the region to economic integration, security, democracy, climate, health, and much more.
The US knows that, on most of the urgent challenges and opportunities we face, Africa will make the difference. We can’t achieve our goals around the world – whether that’s ending the COVID-19 pandemic, building a strong and inclusive global economy, combating the climate crisis, or revitalizing democracy and defending human rights – without the leadership of African governments, institutions, and citizens, he added.
China-Africa trade up by 38.2% YoY to $185.2 bn in Jan-Sep 2021 (Fibre2Fashion)
China-Africa trade rose by 38.2 per cent year on year (YoY) to $185.2 billion between January and September this year, reaching the highest level in history for the same period, according to Chinese vice commerce minister Qian Keming, who recently said China’s direct investment in Africa hit $2.59 billion in the period, up by 9.9 per cent YoY. The growth rate is 3 percentage points higher than China’s overall outbound investment, Qian said, adding that the growth rate outperformed the pre-pandemic level in the same period of 2019.
African nations mend and make do as China tightens Belt and Road (Reuters)
China has lent African countries hundreds of billions of dollars as part of President Xi Jinping’s Belt and Road Initiative (BRI) which envisaged Chinese institutions financing the bulk of the infrastructure in mainly developing nations. Yet the credit has dried up in recent years. On top of the damage wrought to both China and its creditors by COVID-19, analysts and academics attribute the slowdown to factors such as a waning appetite in Beijing for large foreign investments, a commodity price crash that has complicated African debt servicing, plus some borrowers’ reluctance to enter lending deals backed by their natural resources.
Why Africa must be at the heart of EU policies (BusinessAMLive)
GLOBALISATION IS A CENTRAL ISSUE of current and continual relevance to every country, region or continent because of its various contexts. Trade, tourism, technology transfer, pandemic, insecurity and migration are some of the key issues in these contexts with far-reaching, immediate and long-term impacts on livelihoods, economies, safety, and social security. These are also bedrocks for tensions within and between countries and regions, especially when not well managed.
Europe and Africa have long historical ties which still subsist till now. The proximity of Africa to the EU is of practical essence and would warrant a close-up view of unfolding events in the two proximate regions. Europe’s regional integration and economic cooperation have evolved rapidly over the past three decades, but Africa’s regional integration and economic cooperation have remained rather elusive.
It is important to work with countries of Africa to embark on social and economic activities that would discourage risky migrations. Efforts should therefore be directed towards helping to keep Africans on productive economic activities back home. Although the EU has been investing in some critical areas of African economy, much more will need to be done now and in the future for the mutual benefit of the two regions. It is hoped that leaders from Europe and Africa will give renewed attention to this inter-regional cooperation for shared prosperity.
International
ICC, in collaboration with Fung Business Intelligence and supported by McKinsey & Company, has today launched a report outlining a new vision for the global trade finance ecosystem. The report is based on a year-long effort by the ICC Advisory Group on Trade Finance to raise awareness and address the challenges facing micro-, small- and medium-sized enterprises (MSME), particularly in the emerging markets, in accessing the trade finance needed to support their growth and the global recovery. According to the Asian Development Bank, the trade financing gap reached US$1.7 trillion in 2020, an increase to 10% of global goods traded, from 8% in 2018. MSMEs account for 40% of trade finance application rejections by banks.
ICC Secretary General John W.H. Denton AO said: “The difficulties faced by small businesses in accessing trade finance have almost become an accepted facet of international commerce since the global financial crisis. Today’s report is a direct challenge to this status quo — setting out a roadmap for systemic change to address the root causes of the estimated US$1.7 trillion trade finance gap. If we want to enable trade as a real vector of peace and prosperity in the wake of COVID-19, it’s time to stop applying sticking plasters and tackle the need for wholesale reform and effective digitalisation of a market which is currently unable to serve the needs of the real economy.”
High freight rates cast a shadow over economic recovery (UNCTAD)
The recovery of the global economy is threatened by high freight rates, which are likely to continue in the coming months, according to UNCTAD’s Review of Maritime Transport 2021 published on 18 November. UNCTAD’s analysis shows that the current surge in container freight rates, if sustained, could increase global import price levels by 11% and consumer price levels by 1.5% between now and 2023. “The current surge in freight rates will have a profound impact on trade and undermine socioeconomic recovery, especially in developing countries, until maritime shipping operations return to normal,” said UNCTAD Secretary General Rebeca Grynspan. “Returning to normal would entail investing in new solutions, including infrastructure, freight technology and digitalization, and trade facilitation measures,” she said.
Tax rich to help promote social inclusion, says Jeffrey Sachs (Thomson Reuters Foundation)
The challenge of combatting inequality will increase as workers compete with advances in technology, economist Jeffrey Sachs warned on Wednesday, calling for robust government intervention. Private enterprise alone cannot be counted on to fix glaring disparities in wealth, said Sachs, who advocated levying taxes on wealth and private companies to ensure “social inclusion for all.” “The challenges will get worse in the future because technology will continue to replace jobs, will continue to limit opportunities for those who do not have a college education,” he said.
“If the rich act with impunity and can amass even fortunes of tens or hundreds of billions of dollars and not pay taxes along the way, well then, you can’t have social inclusion,” said Sachs, who has advised three United Nations secretaries-general. “These divisions are going to widen unless we get a grip on public policy to ensure that there is inclusion.”
Technology transfer: a new agenda for LDC negotiators (ODI)
This policy brief is one in a series entitled ‘Aligning climate and trade policy: a new agenda for LDC negotiators’. The publication series was complemented by three closed roundtables and two public events with LDC negotiators in advance of the 26th UN Climate Change Conference of Parties (COP26) and the 12th WTO Ministerial Conference (MC12).
Sustainability impact assessments of free trade agreements (OECD Trade Policy Paper)
Trade negotiations are frequently accompanied by sustainability impact assessment (SIA) to evaluate the potential economic, environmental, social and human rights effects of a possible agreement. SIAs can help promote environmental protection, and support the better integration of women, vulnerable populations, and small businesses into the global economy, as well as address growing concerns from civil society. They provide a critical opportunity for dialogue among stakeholders and trade policy makers, and thereby help to rebuild confidence in the trading system. However, SIA approaches ‒ including economic modelling, qualitative causal chain analysis and stakeholder consultations ‒ each have their strengths, challenges and limitations. Those need to be understood by policy makers if reliable and policy relevant conclusions are to be provided.
How to build concerted multilateral action on plastic pollution (UNCTAD)
Plastic pollution, alongside climate change and biodiversity loss, is a key environmental challenge today. Approximately 76% of all plastic produced between 1950 and 2017 has become waste. Of this plastic waste, three quarters were discarded, placed in landfills, or abandoned in terrestrial and marine environment. Additionally, greenhouse gas emissions from plastics in 2015 were estimated at 1.7 gigatonnes of carbon equivalent and are projected to increase fourfold by 2050. As governments grapple with how to tackle plastic pollution, its environmental and health impacts are rising across the life cycle of plastics, harming humans, polluting land, air and the sea, including our climate.
The United Nations International Year of Artisanal Fisheries and Aquaculture 2022 (IYAFA 2022) was launched today at a ceremony that highlighted how small-scale artisanal fishers, fish farmers and fish workers contribute to human well-being, healthy agri-food systems and poverty eradication through the responsible and sustainable use of fisheries and aquaculture resources.
The Year will also contribute, he said, towards reaching several of the objectives under the United Nations 2030 Agenda and the achievement of the Sustainable Development Goals. Looking forward to celebrating the Year “hand-in-hand with small-scale fisheries and aquaculture actors,” the FAO Director-General said: “Small-scale artisanal fisheries and aquaculture are small in scale, but big in value!”
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National
Additive manufacturing in South Africa boosted by local technology developments (Engineering News)
Although the Covid-19 pandemic has had a very real impact on the sector, both globally and locally, all signs are that additive manufacturing (AM) – popularly called 3D printing – is set to grow rapidly in the coming years, both in South Africa and around the world. That was a clear consensus at the recent annual conference of the Rapid Product Development Association of South Africa (Rapdasa) – the representative body of the local AM sector – held in Pretoria at the International Conference Centre of the Council for Scientific and Industrial Research (CSIR). “Globally, the short-term impact of Covid-19 on AM was a substantial deceleration of its growth rate, but no actual contraction occurred,” highlights Loughborough University (in the UK) computer-aided product design specialist and a Rapdasa conference keynote speaker, Professor Ian Campbell. “But AM showed itself to be a great responder to the critical needs created by Covid-19. This has likely given the technology a great boost.”
Zimbabwean Companies Sign Deals worth over $188 Million With Afreximbank at IATF2021 (Afreximbank)
African Export-Import Bank (Afreximbank) has signed financing agreements with four Zimbabwean entities for a total of US$188,600,000. The deals, concluded during the second Intra-African Trade Fair (IATF2021) currently taking place in Durban, were agreed on Tuesday and Wednesday. The trade fair opened on 15 November in Durban and runs until 21 November. On Wednesday, Afreximbank signed with the Zimbabwe Electricity Transmission & Distribution Company (ZETDC) a US$110.4 million Syndicated Term Loan Facility. The funds will help ZETDC to improve revenue collection through smart meters and prepaid meters and thus pay off regional creditors’ accounts.
Coffee price rises by highest margin on world demand (Business Daily)
Coffee prices at the weekly Nairobi auction jumped by 13 percent, the highest margin this year, helped by higher prices at the world market.The latest data shows that Coffee prices at the Nairobi Coffee Exchange (NCE) have increased to Sh40,419 for a 50 kilogramme bag from Sh34,818 in the previous sale. The price of the commodity in the world market hit a high of 226 cents per pound (cts/lb) this week when compared with 200cts l/lb previously. The price of coffee at NCE is normally benchmarked at the New York Exchange, where Kenya sells most of its produce.
High international prices have been occasioned by a shortage of the crop in the world market as Brazil which is one of the top world producers grapples with frost that destroyed most of the produce in that country.
NBK signs up to the UN Global Compact (Business Daily)
The National Bank of Kenya (NBK) has signed a pact to adhere to the United Nations Global Compact provisions, stamping its commitment to ethical and responsible business practices. With the signing, NBK has committed to upholding and protecting human rights, labour, environment and anti-corruption principles in the course of its business dealings. As a signatory to the compact, NBK will be required to submit an annual Communication on Progress (COP) report, demonstrating the steps taken towards achieving the Ten Principles of the UN Global Compact.
Ethiopia’s economy hit as major clothing maker closes shop (AP News)
Ethiopia’s once rapidly growing economy is taking another hit tied to its yearlong war, with global clothing manufacturer PVH Corp. saying it is closing its facility there because of the “speed and volatility of the escalating situation.” The company’s statement, emailed to The Associated Press, comes two weeks after U.S. President Joe Biden announced he would cut Ethiopia from a trade program, the African Growth and Opportunity Act, because of “gross violations of internationally recognized human rights.” The sanction goes into effect on Jan. 1.
Rwanda’s economy expected to grow by 10.2% this year (The New Times)
Rwanda’s economy is expected to grow by 10.2 percent this year (2021) after its growth was revised upwards from the initial 5.1 percent, Central Bank Governor John Rwangombwa has said. Rwangombwa made the disclosure on Thursday, November 18, 2021 while presenting the National Bank of Rwanda’s 202/021 activity report to Parliament’s both Chambers. In 2020, Rwanda’s economy fell by 3.4 percent, representing the first economic slump since 1994. The factors for such economic slump is the Covid-19 pandemic, including measures to control it, such as lockdowns that sharply reduced economic activities in 2020. “We continued having an accommodative monetary policy that supports economic recovery, and we are happy that the economy continued growing as indicated by the first and second quarter of this year,” Rwangombwa told legislators on Thursday.
The African Development Bank Group and the Government of Burundi on Tuesday signed a $29 million grant agreement to finance Phase 1 of the Access to Energy Project, which is part of the country’s infrastructure development program. The agreement was signed during an official meeting in Bujumbura between the African Development Bank Group’s Director General for East Africa, Nnenna Nwabufo, and Burundi’s Minister of Finance, Budget and Economic Planning, Domitien Ndihokubwayo. Nwabufo was in Burundi to reaffirm the Bank’s commitment to the Burundian government’s 2018-2027 National Development Plan.
Nigerian Oil Sector Contracts by 10.73 Percent in Q3 2021 (Investors King)
The oil sector contracted by 10.73 percent year-on-year and contributed just 7.49 percent to the total real Gross Domestic Product (GDP) in the third quarter (Q3) of 2021 in spite of the amount invested in the sector since oil was discovered in Nigeria. Quarter-on-Quarter, the oil sector grew by 12.05 percent in Q3 2021. The Oil sector contributed 7.49 percent to total real GDP in Q3 2021, down from 8.73 percent recorded in the corresponding period of 2020 and up compared to the 7.42 percent filed in the preceding quarter. In the third quarter, Nigeria failed to up crude oil production despite oil prices trading at over $80 per barrel. Crude oil production was 1.57 million barrels per day (mbpd) on average, down from 1.67 mbpd achieved in the same quarter of 2020. Another indication that Nigeria is still struggling to up production due to its outdated oil infrastructure and high cost of production.
In the latest report by the National Bureau of Statistics (NBS), the non-oil sector remains the powerhouse of the Nigerian economy, growing at 5.44 percent in real terms in the third quarter and contributing 92.51 percent to the nation’s economy.
Nigeria: Staff Concluding Statement of the 2021 Article IV Mission (IMF)
The Nigerian economy is recovering from a historic downturn benefiting from government policy support, rising oil prices and international financial assistance. The authorities’ pro-active approach has contained the COVID-19 infection rates and fatalities. With the emergence of fuel subsidies and slow progress on revenue mobilization, the fiscal outlook faces significant risks. Continued reliance on administrative measures to address persistent foreign exchange shortages is negatively impacting confidence. Without urgent fiscal and exchange rate reforms, the medium-term outlook faces sub-par growth.
Build synergies to advance digital innovations - Dr Bawumia urges banks (Graphic Online)
The Vice-President, Dr Mahamudu Bawumia, has urged banks to explore synergies and partnerships to advance digital technological innovations. That, he explained, would redefine the banking sector to ultimately spur economic growth. Speaking at the opening of the 25th National Banking Conference in Accra yesterday, the Vice-President encouraged the Chartered Institute of Bankers (CIB), Ghana to lead the charge in capacity-building for an innovation-driven banking industry. The conference was on the theme: “The digital economy of Ghana: The strategic role of the banking industry”.
Giving a background of the country’s digital agenda, the Vice-President said the transformative digital agenda started in 2018 when the government launched the agenda in a bid to digitalise all sectors of the economy. He said the introduction of the Ghana Card, the Ghana Post digital address system, the Ghana.Gov and the mobile money interoperability were a few of the significant milestones in Ghana’s journey to digitalisation.
Africa
Oil Industry key To Africa Free Trade Agreement – Wabote (Leadership)
Technological advancements in the African oil and gas industry and proceeds from operations will play significant roles in industrializing the continent and actualizing the goals of the African Continental Free Trade Agreement (AFCFTA), the executive secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote has said. He spoke on Thursday in Lagos at the Real News Magazine 9th Anniversary Lecture, hinting that Africa’s industrialization agenda is at the heart of AFCFTA and oil and gas remains a key part of the energy mix required for industrializing the continent and revenues obtained from selling the resources constitute key drivers of the economies of the African oil and gas producing countries.
Entrepreneurs urged to establish AfCFTA desks (News Ghana)
Mr Wallace Akondor, former Commissioner of Customs, has called on entrepreneurs to establish African Continental Free Trade Area (AfCFTA) desks in their establishments. “Get Human Resource personnel sitting right at your Management and Board tables, briefing you on AfCFTA and helping you to determine your production, dreams and working moments and how you are factoring AfCFTA into the way you are doing your business.” He said entrepreneurs must be engaged actively into not just the discussion but formulation into their productions.
African finance resilient to Covid-19 challenge (Engineering News)
The European Investment Bank’s (EIB’s) ‘Finance in Africa 2021’ report has shown the resilience of Africa’s financial sector and enthusiastic engagement to embrace digitalisation. However, the report, which included input from 78 leading banks and financing institutions active across sub-Saharan Africa, also highlights future risks that could hinder financing for business growth, renewable energy and recovery from the pandemic, EIB VP Thomas Östros says.
FDA breaking down regulatory barriers to facilitate Intra-Africa Trade (Myjoyonline)
Africa is known to be the only continent that does not consume what it produces, with a total of less than 16% intra-Africa trade flows, compared to the 60%, 40%, and 30% intra-regional trade achieved in Europe, North America, and The Association of Southeast Asian Nations (ASEAN) respectively. This came to light at the 2nd Intra-African Trade Fair, 2021 being organised under the auspices of the Secretariat of the Africa Continental Free Trade Area (AfCFTA).
Major barriers to an efficient trade system within the continent have been identified to include the high cost of doing business, corruption, security concerns, and varied certification requirements. The Food and Drugs Authority (FDA), Ghana together with other standards regulatory authorities are present at the ongoing fair with the purpose of interacting with the business community to provide regulatory support that will facilitate trade across the continent.
IFC Partners with Absa Bank to Boost Trade Finance in Sub-Saharan Africa (IFC)
IFC today welcomed Absa Bank Ltd. to its Global Trade Liquidity Program (GTLP) to boost access to trade finance in sub-Saharan Africa, especially in low income and fragile countries, supporting a vital driver of growth that has been strained by the COVID-19 pandemic.
Through a combined investment of $250 million, IFC and Absa Bank, one of Africa’s largest financial institutions, will channel credit to a portfolio of trade transactions that is expected to facilitate up to $1.6 billion in trade over the next three years. The financing will support Absa’s commitment to increase the accessibility of trade finance, with around 80 percent of financing expected to go to low income and fragile countries.
Afreximbank commits us$250 million seed capital for sub sovereign governments (Afreximbank)
African Export Import Bank (Afreximbank) has committed US$250 million as seed capital towards the establishment of an African Sub Sovereign Governments Network. Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank made the announcement yesterday during an inaugural conference of the Sub Sovereign Governments at the Moses Mabhida Stadium, Durban, on the sidelines of the second Intra-African Trade Fair (IATF 2021). The Sub Sovereign Governments Network, is yet another ingenious strategic initiative by the Bank, aimed at firmly establishing an intra-continental trade investment development frontier.
Resetting Africa includes bridging the infrastructural gaps (Ventures Africa)
Infrastructure development is a key driver of progress in a nation’s pursuit of outright economic prosperity vis-a-vis quality existence for its citizenries. This is because Infrastructure development enables wider productivity which engenders sustainable economic growth.
As democracy in Africa strengthens, the infrastructure development level on the continent is also gaining traction, which is positive in terms of aligning the productivity rate across the continent with the standards obtained in the developed parts of the world. The COVID-19 pandemic, however, halted the inspiring pivot to infrastructure development on the African continent. Funds previously voted for infrastructure projects were hurriedly redeployed to cater to pending national needs to avert deep public health and humanitarian crisis. The brief, unplanned fiscal interruption left huge gaps in the socioeconomic growth agenda of the major economies in Africa. The thriving youth demography is hailed as the ‘sweetener’ in the continent’s attractive market proposition. Foreign direct investment appeal had their dreams of increased access to efficient IT infrastructure, lasting electricity supply, faster transport system and supportive municipals placed on hold as the governments hurried to feed an inactive population, source for vaccines to maintain a robust active segment amid a historic decline in the revenues derived from the commodity markets which provide a larger chunk of the funds that power the economy.
ECA paves way for SMEs to attend continental trade fair (UNECA)
Over thirty Small and Medium Enterprises (SMEs) participated in the Intra-Africa Trade Fair (IATF), which took place in Durban, South Africa, on 15-16 November. A majority of the SMEs - sponsored by the Economic Commission for Africa (ECA) through its African Trade Policy Centre (ATPC) and in collaboration with UN Women - were women led (24) and youth entrepreneurs (17) aged between 21 and 35 years old. The businesses were mainly from the East Africa, West Africa, Central Africa, and Southern Africa regions.
Stephen Karingi, ECA’s Director of Regional Integration and Trade, said the selected SMEs are beneficiary of ECA’s previous capacity building programmes on trade, the Africa Continental Free Trade Area (AfCFTA), and/or gender and trade. “These are SMEs producing goods and/or services with high potential for intra-African trade,” said Mr Karingi, adding that their economic activities cross all agriculture, agro-processing, and other manufacturing sectors such as coffee, poultry and associated products, leather products, and textiles, as well as services like transport and logistics.
What African countries got out of COP26 (The Conversation Africa)
According to the African Group of Negotiators, the main African agenda items can be summarised as follows. Climate responsibility: Developed nations have to take their responsibilities and lead the way to reaching zero net emissions by 2050. Climate finance and adaptation: Developed nations have to mobilise enough funds to finance adaptation in developing countries that are adversely affected by climate change. Finance architecture and transparency mechanisms should be put in place. Transfer of technologies and capacity building: Developed nations must transfer sound environmental technologies to African countries for effective climate adaptation, mitigation and transition. Long-term climate financing: Developed nations have to meet their pre-2020 commitment of US$100 billion per year and agree on long-term climate financing.
‘Young people of Africa, step up to feed the continent!’ (Food for Mzansi)
Young people of Africa, you need to engage and grow a vibrant agricultural sector – for the sake of sustainable food security on our continent. A strong call to action came from South African agriculture, land reform and rural development minister Thoko Didiza today. She was joined by Grace Obeda, principal youth employment officer at the African Development Bank, in opening Food For Mzansi’s Pan-African Summit on Youth in Sustainable Agriculture.
As keynote speaker, Obeda said that agriculture remains the backbone of Africa’s economic development. “The best way to transform it, is through raising productivity.” She talked about the need for Africa to up its game in creating job opportunities for young people. Africa’s most valuable asset and sustainable competitive advantage is not its oil, gas and minerals, she said, but its demographically dominant youth. “70% of Africans are under 35. This is according to statistics, in 2019, of the African Development Bank. They are projected to reach 850 million by 2050 and will constitute half of the 2 billion working-age population by 2063.” said Obeda.
The Maritime Security Architecture can only function fully if there is an interconnection between the national and regional levels.” This is what emerged from the 7th edition of the Steering Committee (SC) of the MASE regional agreements, held this Wednesday, November 17, 2021, by video conference. Organised by the Indian Ocean Commission (IOC) through the Regional Maritime Security Programme (MASE) funded by the European Union, this session brought together more than thirty participants representing the seven signatory States (Comoros, Djibouti, France, Kenya, Madagascar, Mauritius and Seychelles), the Regional Maritime Information Fusion Centre (RMIFC), the Regional Operations Coordination Centre (RCOC) and the European Union (EU) Delegation in Mauritius. This annual meeting is part of the operationalization of the Western Indian Ocean Maritime Security Architecture, implemented by the IOC and which relies on regional centres (RMIFC and RCOC) and national centres of signatory States.
African marine rules favour big industry, leaving small-scale fishers in the lurch (The Conversation Africa)
The African marine fisheries sector is huge. It’s valued at more than US$24 billion per year. The sector is comprised of two main players. One is the continent’s artisanal or small-scale fishers, a form of fishing conducted on small fishing boats by coastal communities. The other is industrial fisheries, including trawlers and distant water fishing fleets. These vessels are sometimes owned by African nationals but mostly overseen by international fishing companies or as part of a joint venture. Fishing by non-African fleets is done through access agreements or licences issued by African states.
But all is not well in Africa’s oceans. Distant water fleets are over-exploiting fish stocks through overfishing and illegal, unreported and unregulated fishing. This is because there’s limited domestic or regional capacity to monitor the activities of these trawlers and enforce existing laws. The marine fisheries sector is under threat due to these unsustainable rates of fishing, and also because of weak fisheries governance.
Our findings demonstrate two things. First, fisheries governance mechanisms in Africa are largely constraining small-scale fishers, while failing to contain the industrial fisheries sector. Second, despite a higher incidence of illegal, unreported and unregulated fishing in industrial fisheries than in small-scale fisheries, efforts to develop and regulate fisheries continue to advance the industrial sector. African states have continued to enter new agreements and issue new licences to distant water fleets. They also fail to institute stringent measures to curb their illegal activities.
Why SAATM is key to reviving Uganda’s aviation sector (Independent)
This week marked exactly 32 years since the signing of the Yamoussoukro Decision (YD). For those with interest in the African aviation industry, the Ivorian city of Yamoussoukro represents a significant milestone in the history of the continent. On the 14 and 15th of November 2009, African ministers and government representatives in charge of civil aviation under the auspices of the AU (then OAU), signed up to an agreement that bound their respective states to a decision that would see the full liberalization of air transport services on the continent.
SAATM is designed to lift restrictions on market access in Africa and to remove restrictive bilateral air service agreements (BASAs) between state pairs. It provides for the granting of 1st up to 5th freedom rights for designated airlines among SAATM states. 5th freedom rights essentially give an airline the right to carry revenue passengers from one’s own country to a second country, and from that country onward to a third country. A recent study in collaboration between IATA and Intervistas on the potential benefits of liberalization in Africa reviewed 607 Bilateral Air Service agreements and found that 61% of them are not compliant to the YD. The countries with the least compliant BASAs in Africa were found to be Uganda, Burundi, Libya, Seychelles and Morocco Across Africa, 35 countries have signed the solemn commitment to SAATM but only 17 have gone ahead to sign the memorandum of implementation. Uganda belongs to nether of the 2 groups.
Launch of the 3rd Edition of the Labour Migration Statistic Report in Africa (African Union)
On the African Statistics Day, 18th November 2021, the African Union Commission in collaboration with Member States, Regional Economic Communities, ILO, IOM and Statistics Sweden has launched the 3rd edition of the labour migration statistics report in Africa, under the Joint Programme on Labour Migration Governance for Development and Integration in Africa (JLMP). The key highlights of the report include bridging some of the data gaps from the previous edition by availing data from additional data sources, improved chapter on social protection, remittance, and other additional characteristics of migrant workers.
In his opening remarks, Mr. Sabelo Mbokazi, Head of Labour, Employment and Migration Division at the Department of Health, Humanitarian Affairs and Social Development, African Union Commission informed the delegates that the production of these report series has greatly improved the availability of labour migration statistics in the continent. He emphasized that with available evidence from the report, intra-regional migratory movements take prevalence in the continent as compared to outside the continent. Mr. Mbokazi further noted that with this increased migratory movements, labour migration is a priority thematic area that requires high quality, and up to date labour migration data for evidence-based policy making. He also pointed out that harmonisation of key definitions, concepts, methodologies and tools is another key priority area of concern for the Africa Union Commission.
EAC sets out strategy for horticulture trade (IPPMedia)
EAC Deputy Secretary-General Christophe Bazivamo said that the fruits and vegetables value chain intra-trade strategy and action plan for 2021 to 2031 is projected to reach $25m in value with global exports attaining $1.3bn. The plan was unveiled at the EAC public-private dialogue on fruits and vegetables, where he said the EAC Secretariat worked on the trade of fruits and vegetables intra-trade issue as commerce at present stands at $9.9m. More investments are needed in nutritional and medicinal indigenous fruits and vegetable plants sub- sector, so as to improve production capacity, strengthen research and development, innovation, packaging, market access and trade facilitation.
Agribusiness, ICT stimulus for job creation - ECOWAS Bank President declares at Volta Fair (Graphic Online)
The President of the ECOWAS Bank, Dr George Agyekum Donkor, has underscored the importance of focusing on agribusiness, ICT and tourism as driving forces for job creation. Delivering a keynote address as the guest of honour at the official opening of the 5th Volta Trade Fair in Ho last Wednesday, on the theme, “Promoting Sustainable Trade and Investment”, Dr Donkor said the Volta Region had many tourist attractions which could easily become the backbone of the region’s economy, while its agriculture sector employed approximately 74 per cent of the active population. He said there was, however, the need to successfully transition from farming to take advantage of the entire agribusiness value chain in order to bring increased value to players in the industry.
Ghana, three others to strengthen cooperation on border management (Ghana Business News)
Ghana, Burkina Faso, Cote d’Ivoire and Togo have committed to strengthen cooperation on border management under the coordination of ECOWAS and the support of the European Union (EU). The four countries have committed to a common declaration for the benefit and security of citizens in the sub region of the Economic Community of West African States. This followed SBS Ghana project regional conference held in Accra with high-level representatives and technical experts of governments of the four countries to discuss issues related to security and cross-border cooperation.
EU, ECOWAS, UEMOA Commissions meet to strengthen strategic partnerships (Myjoyonline)
The European Union, ECOWAS and UEMOA Commissions are meeting in Accra to strengthen strategic partnership between the EU and sub region on economy, trade, security, amongst others. The two days meeting is expected to identify developmental actions under the six priority areas including inclusive and sustainable growth, the promotion of descent jobs, leveraging digital transformation and good governance. It marks the launch of the UEMOA – ECOWAS – EU tripartite consultation mechanism for the Neighborhood, Development and International Cooperation Instrument (NDICI), which aims to strengthen the strategic partnership between the EU and West Africa, and to ensure the coherence of the programming of development actions, which provides for actions at national, regional and continental levels.
Addressing Food Insecurity and Boosting the Resilience of Food Systems in West Africa (World Bank)
Some four million people across West Africa stand to benefit from a new multi-phase regional program that will complement and enhance ongoing efforts to reduce food insecurity and improve the resilience of food systems. The new Food Systems Resilience Program (FSRP) was approved by the World Bank’s Board of Executive Directors today for a total amount of $570 million in International Development Association (IDA) financing.
The first phase of the program which amounts to $330 million brings together four countries —Burkina Faso, Mali, Niger, and Togo— and three regional organizations
to implement a broad program that will simultaneously increase agricultural productivity through climate-smart agriculture, promote intraregional value chains and trade, and build regional capacity to manage agricultural risk.”By investing across these three areas and targeting priority landscapes and value chains of regional relevance, the program takes a system approach to stimulate virtuous cycles of growth that can break the perpetual pattern of shock-recovery-shock,” explains Chakib Jenane, World Bank’s Practice Manager, Agriculture and Food Global Practice for Western and Central Africa.
Wings of change: Regional medical tourism to take flight in Africa (The Star, Kenya)
One unintended consequence of COVID-19?A rush of investments into research and medical facilities across the continent will see overseas-bound medical tourists staying local as regional centres of excellence abound, according to a report.F ewer trips to India and other “medical tourism” destinations by Africa’s middle class is one anticipated result of a surge of investment into medical facilities, says a just-released report, which also highlights the opportunity for these facilities to mint money treating lifestyle diseases as Africa’s middle class rapidly expands. The number of Africa’s own regional medical tourism destinations is also seen rising beyond South Africa, Morocco, Egypt and Tunisia - which currently have the most advanced medical facilities on the continent - according to Research and Market’s Medical tourism 2022: Africa potential. According to the report, ‘winds of change are sweeping across African medical tourism,’ 11 countries top a list of those looking to take in more patients from other jurisdictions within Africa - as well as outside the continent - in the coming year. “Once seen as just a source for other medical tourism destinations, some African countries have taken stock and have or will seek to increase inbound medical tourism and reduce outbound medical tourism,” says Research and Market’s “Medical tourism 2022: Africa potential” report.
ECA Executive Secretary opens the committee on social policy, poverty and gender (UNECA)
The United Nations Under-Secretary General and Executive Secretary of the Economic Commission for Africa (ECA) Ms. Vera Songwe opened the fourth biennial session of the Committee on Social Policy, Poverty and Gender today with a strong call for coordinated action on building a resilient Africa in the wake of the COVID-19 pandemic.
In light of the ongoing global health emergency, the theme of the session is ‘building forward better towards an inclusive and resilient future in the context of COVID-19’. The committee’s participants will explore strategies that can shift the post-pandemic recovery of Africa onto an inclusive and resilient path, while determining how those can be prioritized in the policy mandates of ECA. In her welcome remarks, Ms. Vera Songwe said: “COVID-19 is not only a severe health emergency but equally a grave economic and social crisis. The pandemic pushed an additional 55 million into poverty thereby reversing the gains made towards the 2030 Agenda for Sustainable Development. But with its challenges, COVID-19 has offered unprecedented opportunities to build back better for a future more resilient to shocks, including those related to climate change.”
Africa’s creative industries becoming a more attractive investment proposition (How we made it in Africa)
In Africa, the plight of the artist can be particularly harsh. A lack of investment in the arts, scant public sector involvement, fragmented markets, distribution difficulties, and the bane of copyright pirates conspire to thwart the dreams of even the most determined musician, writer, designer, or movie maker. And yet, Africa’s potential as a creative powerhouse is huge. The continent already boasts the planet’s youngest and fastest-growing population (it is largely the young who fuel the creative sector) and by 2035 sub-Saharan Africa will have more working age people than the rest of the world combined.
An exhaustive UNESCO study of the global cultural landscape estimated that 2.4 million people were employed in the creative industries in Africa and the Middle East in 2015 and that the sector achieved $58 billion in revenues.
The United States and Africa: Building a 21st Century Partnership (United States Department of State)
The “Giant of Africa” is an apt nickname for Nigeria, because this country looms large. Your strengths are undeniable – a dynamic democracy, a robust economy, and a very powerful civil society. The challenges you face are undeniable as well – including the disruption and insecurity caused by terrorism and armed groups.
The United States knows that, on most of the urgent challenges and opportunities we face, Africa will make the difference. We can’t achieve our goals around the world – whether that’s ending the COVID-19 pandemic, building a strong and inclusive global economy, combating the climate crisis, or revitalizing democracy and defending human rights – without the leadership of African governments, institutions, and citizens.
The United States firmly believes that it’s time to stop treating Africa as a subject of geopolitics – and start treating it as the major geopolitical player it has become. The facts speak for themselves. This is a continent of young people – energized, innovative, hungry for jobs and opportunity. By 2025, more than half the population of Africa will be under age 25. By the year 2050, one in four people on Earth will be African. And Nigeria will surpass the United States as the third most populous country in the world. Africa is poised to become one of the world’s most important economic regions. When the 54-country African Continental Free Trade Area is fully implemented, it will comprise the fifth-largest economic bloc in the world, representing a huge source of jobs, consumers, innovation, and power to shape the global economy. As we work to end the COVID-19 pandemic and strengthen global health security, we must work closely with the countries of Africa to build public health systems here that can prevent, detect, and respond to future emergencies – because as these past two years have taught us, none of us are completely protected unless all of us are protected.
As the urgency of the climate crisis grows, our focus will increasingly be on Africa – to solve an emergency that threatens our collective security, our economies, and our health. Here, where the potential for renewable energy is greater than anywhere else on the planet, we see not only the stakes of this crisis but also – also its solutions.
55 states to take part in FOCAC (The Herald)
The eighth Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) will be held in Dakar, Senegal, at the end of November, with 55 member countries expected to participate, China’s Ministry of Commerce said on Wednesday. “We will work together on setting new measures in accordance with our development strategies. The new measures should be in line with China’s vision of 2035 and the adaptation of ‘dual-cycle development.’ For Africa, the measures should also align with the African Union’s 2063 agenda,” said China’s Vice Minister of Commerce Qian Keming.
In the first nine months of this year, the bilateral trade volume reached a record of US$185,2 billion, up by 38,2 percent year on year. China’s direct investment to Africa across all sectors was US$2.59 billion, mirroring an increase of 9,9 percent. “China’s exports of construction machinery and daily necessities have met both the production and living needs of those in Africa. To China, Africa is an important source of many mineral resources, an important element in maintaining the stability of our industrial chain,” said Qian.
International
Members to continue discussion on a common COVID-19 IP response up until MC12 (WTO)
At a formal meeting of the Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS) on 18 November, WTO members agreed to keep actively engaging up until the WTO’s 12th Ministerial Conference (MC12) in order to find a common intellectual property (IP) response to COVID-19. The chair of the Council, Ambassador Dagfinn Sørli of Norway, said he will make sure no stone is left unturned to explore all available options towards a consensus-based outcome at the Ministerial Conference taking place from 30 November to 3 December. Members adopted the oral status report that will be submitted by the chair of the TRIPS Council to the General Council scheduled for 22-23 November. The text provides a factual overview of discussions held at the TRIPS Council since October 2020, both on the proposal by India and South Africa.
More than trade: Why India resists an investment facilitation agreement in WTO (Financial Express)
The 12th Ministerial Conference (MC12) of the WTO is scheduled from November 30 to December 3 in Geneva. A group of over 100 WTO member countries are deliberating on a proposal to have a plurilateral agreement on investment facilitation to be finalised at this ministerial conference. India has taken a firm stand against this initiative.
The agreement on Investment Facilitation for Development being negotiated by a group of over 100 WTO members under a plurilateral mode has been evolving and the visible result of the progress of such discussions are the three texts prepared in his own responsibility and without prejudice, by the Group coordinator, Ambassador Mathias Francke of Chile.
India’s reservations against the investment facilitation discussions on the sidelines of the WTO are twofold: (a) Investment doesn’t belong to the WTO: To the extent investment is related to trade it is already included in the TRIMs agreement and under mode 3 related to FDI in the General Agreement on Trade in Services (GATS). Rules on football (trade) can’t, for example, be applied to tennis (investment); (b) Plurilateral route of negotiations under which investment facilitation is being discussed has no legitimacy in the WTO. India has naturally not participated in the discussions and has not formally commented on the successive texts.
The second session of the Meeting of the Parties (MOP2) to the Protocol to Eliminate Illicit Trade in Tobacco Products (the Protocol) held virtually, started on 15 November 2021. This event brought together delegates of almost all the Parties to the Protocol, and State non-Parties to the Protocol (Parties to the FCTC), including representatives of Customs and other law enforcement authorities, as well as Observers to the MOP, and representatives of the WHO and the WHO FCTC Secretariat.
After the opening remarks by Dr. Tedros Adhanom Ghebreyesus, WHO Director-General, and before the address by Dr. Adriana Blanco Marquizo, Head of the WHO FCTC Secretariat, Dr. Kunio Mikuriya, WCO Secretary General, highlighted in his keynote speech, that the excellent cooperation that existed between the WHO and the WCO had enabled his Organization during the COVID-19 pandemic to identify in the Harmonized System a list of relevant medicines, medical goods and vaccines. This helped Customs in ensuring the smooth movement of goods and safeguarding the supply chain of medicines, medical goods and vaccines, while protecting citizens’ health and safety from the threat posed by illicit trade during period. Over the past two years, the WCO had organized global operations to detect and intercept fake and/or counterfeit medicines, medical goods and vaccines, resulting in the seizure of millions of illicit products.
How Trade Can Help Speed Asia’s Economic Recovery (IMFBlog)
Trade has historically been a powerful driver of economic growth and poverty alleviation in Asia, though the momentum of lowering trade barriers has slowed in recent years.
While tariff barriers to trade in Asia are low overall, a new measure of nontariff barriers suggests those remain high in many Asian emerging markets and developing economies. Unlike tariffs, these barriers include policies that introduce frictions such as licensing requirements or restrictions on trade, payments, or exchanging foreign currencies.
According to recent research, which was detailed in the IMF’s Asia-Pacific Regional Economic Outlook, easing nontariff barriers can boost gross domestic product by about 1.6 percent, potentially healing about a quarter of expected pandemic scarring. The findings take on added significance given that IMF forecasts suggest GDP in 2024 will be 6 percent below the pre-crisis trend in Asian emerging and developing economies, equal to losses of about $1 trillion annually.
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South Africa urges careful planning for end of coal (Engineering News)
South Africa’s energy department has said it will start preparing for the end of coal-for-power use in the country but cautioned that a retreat from the dirtiest fossil fuel must take account of the impact on the economy and the people who depend on it for a living. In a presentation to a small group of business, government and research representatives on November 15, the department said it plans to set up a Just Energy Transition unit to help deliver an outcome “which delivers social justice,” according to a copy of it seen by Bloomberg. While the department declined to immediately comment on the presentation, four people with knowledge of it confirmed its veracity.
Natural gas development crucial for Namibia (New Era)
Namibia considers its oil and natural gas resources to be crucial to its socio-economic development. This is according to deputy mines and energy minister, Kornelia Shilunga, who was speaking on Tuesday at the 23rd Africa Energy Forum in London, which commenced on Monday and concluded yesterday. However, Shilunga noted that despite recent exploration efforts thus far, the only commercially exploitable petroleum discovery is the Kudu Gas Field offshore Namibia. “Given that natural gas will play a major role as the world transit from carbon-based energy resources to renewable resources, the development of the indigenous natural gas is crucial to Namibia and the SADC region to secure affordable and reliable electricity while safeguarding our environment.”
IMF says will not provide financial support to Zimbabwe due to unsustainable debt (Ecofin)
Zimbabwe will not receive financial support from the International Monetary Fund (IMF). In a November 16 statement, the institution said the decision is due to “an unsustainable debt and official external arrears”. Although the Fund welcomes the efforts made so far by the authorities to contain inflationary pressures, it points out that Harare’s debt problems are a major obstacle to its eligibility for an aid program. Zimbabwe has been trapped in a decade-long economic crisis that has coincided with a gradual increase in its debt, particularly the external debt. The country’s GDP rose from $12 billion to $16.7 billion between 2010 and 2020 (World Bank). However, its total external debt rose from $6.7 billion to $12.7 billion, or 76% of GDP, over the period.
Chinese, Kenyan traders launch chamber of commerce (The East African)
Chinese and Kenyan traders have launched a chamber of commerce in Nairobi, seeking to connect their scattered operations in the two countries into a lobbying machinery. And the Kenyan government says the move to create the Kenya-China Chamber of Commerce will be an arena for businesspeople to learn from one another and cut out suspicions. Trade Principal Secretary Johnson Weru said the Chamber, which will include registered Kenyan and Chinese firms, will be part of a long-term goal of improving contacts between the two sides, beyond government channels. “This institution will further promote the friendship and deepen exchanges and cooperation,” he said after the organisation was launched in Nairobi on Wednesday. “Together we have embarked on a distinctive path of win-win cooperation. Our cooperation has set a good example for building a new type of international relations.”
Kenya sends team to unlock EU mango ban (The East African)
Kenya has dispatched a delegation to Brussels to lobby for resumption of mango exports to the lucrative European Union market. The team, led by Directorate of Horticulture and Kenya Health Plant Inspectorate Service (Kephis) officials, is steering negotiations to have the country access the market after nearly a decade of having not exported the produce to the EU. Kenya imposed a ban on export of its mangoes to Europe in 2012 for fears that the produce would be blacklisted due to high level of fruit flies, which are quarantine pests in the EU. The government is using the creation of pest free areas as a basis for having the ban lifted. The pest-free zones have been established in Makueni and Elgeyo Marakwet counties.
How Tanzania can benefit fully from continental free trade area (The Citizen)
Business stakeholders yesterday said for Tanzania to really benefit from the African Continental Free Trade Area (AfCFTA), then some pending trade barriers need to be addressed. “If we are to improve, we need to address the question of human resource skills and attitude gap which is very huge,” said Prof Mkumbo. He also urged investors in the country to build a regional and international competitive culture that will help them to move out of their comfort zones and fight for more successes. “The signing and ratification of the AfCFTA reminds us that our businesses need to be competitive. “As a government we are ready to facilitate by coming up with friendly policies and legislations. Members of the private sector too need to play their part.”
Clove exports soar as global prices increase (The Citizen)
The value of clove exports more than doubled to $40.6 million as prices of the produce increased in the world market. Clove is a key export cash crop in Zanzibar which also generates foreign earnings through tourism activities. Service receipts have been affected by the Covid-19 that has disrupted many economic activities around the world. According to the Bank of Tanzania (BoT), the value of exports of cloves increased to $40.6 million in the year ending September 2021, from $17.6 million recorded during a similar period in 2020.
Why Tanzania’s Sh1.3trillion IMF loan is now interest-free (The Citizen)
The Sh1.3 trillion loan given to Tanzania by the International Monetary Fund (IMF) will draw no interest after the Washington-based international financial institution was satisfied with the government’s expenditure plans for the money. To help the Tanzanian economy recover from the adverse effects of the global Covid-19 pandemic, IMF extended a total of $567 million as a loan, with $189 million of that being under the Rapid Credit Facility (RCF) programme, while $378 million was under the Rapid Financing Instrument (RFI). In a statement released by the IMF on November 12, 2021, Tanzania will now obtain the funds fully on the concessional terms after RFI funds – which make up 66.7 percent of the quota - were repurchased and disbursement made from RCF resources.
UK trade envoy to invest £2.5bn in Uganda’s industrial parks (Monitor)
The UK trade envoy to Uganda, Lord Dolar Popat has committed to raise investment in Uganda’s industrial parks from £500m to £2.5bn in the next five years. Mr Popat made the revelation during a working visit to Uganda at Kampala Industrial and Business Park, Namanve while checking on the progress of works. “I am pleased to say that we have £500m available to Uganda and we will raise it to £2.5bn to support Uganda achieve its target of setting up five industrial parks each year for the next five years. We will support Uganda through Uganda Investment Authority (UIA) as long as we complete this park (Namanve) to be a good role model for us. We are committed to investing in Uganda because it is my country of birth,” Mr Popat said. The development of infrastructure at Kampala Industrial Business Park commenced in July 2020 with Lagan Dott Namanve Limited as the engineering, procurement construction contractor.
Ken Ofori-Atta presents 2022 ‘Agyenkwa’ budget to parliament (GhanaWeb)
The Minister of Finance and Economic Planning, Ken Ofori-Atta characteristically arrayed in his trademark white Kaftan on Wednesday, November 17, 2021, presented the 2022 Budget Statement and Government’s Economic Policy in Parliament. He emphasized that the Budget Statement dubbed, ‘Agyenkwa’ Budget is aimed at strengthening the economy despite the Covid-19 menace and is focussed on jobs creation and skills training for the youth as well as entrepreneurship to address the growing unemployment in the country.
Ghana has long served as a critical hub for telecoms cables linking Africa and Europe. But limited access and a lack of technical skills have put digital resources out of reach of many Ghanaians. The right mix of training, mentoring, and access to online technologies can help Ghanaians when it comes to health services, more opportunities for education, jobs, and entrepreneurship. The eTransform Ghana project, initiated by the Ghanaian government and supported by the World Bank, is tackling these challenges head-on. This $212 million project aims to provide inclusive access to digital technologies, strengthen institutional capacity, and accelerate the use of digital services.
Study: African Integration Beneficial for Moroccan Economy (Morocco World News)
Morocco’s current strategy has already set the country on track to being a regional and continental leader. A new study by the Moroccan Finance Ministry’s Studies and Financial Forecasts Department (DEPF) has established the positive effects of African integration on the Moroccan economy. “All the interventions highlighted the importance of the AfCFTA, which offers Africa an opportunity to harmonize its business environment and presents real hope for long-term development,” the Policy Center for the New South said in a press release.
Nigeria’s 2060 Net-zero Projection (This Day)
For Nigeria, it was revealed that the nation plans to zero out carbon emissions by 2060 through its Energy Transition Plan for achieving net-zero emissions. President Muhammadu Buhari made this pledge at the High-Level segment for Heads of State and Government. In his speech, Buhari, whose address was expected to highlight Nigeria’s key priorities and action to tackle climate change as well as progress on the country’s transition to low carbon economy, consistent with achieving the Paris Climate Agreement, said: “For Nigeria, climate change is not about the perils of tomorrow but about what is happening today. In our lifetime, nature has gone from a vast expanse of biodiversity to a shadow of itself. “We are investing in renewables, hydro-dams and solar projects. Nigeria is not looking to make the same mistakes that are being repeated for decades by others. We are looking for partners in innovation, technology and finance to make cleaner and more efficient use of all available resources to help make for a more stable transition in energy markets.
Cameroon and Chad signs new memorandum governing optical fiber transmission networks’ interconnection (Business in Cameroon)
On November 12, 2021, in Yaoundé, Minister of Posts and Telecommunications (Minpostel) Minette Libom Li Likeng and her Chadian peer Idriss Saleh Bachar signed a memorandum of understanding relating to the interconnection of Cameroonian and Chadian optical fiber transmission networks. This memorandum is in fact a revised version of an agreement existing since 2011. “This memorandum, which is a considerable breakthrough in the subregional digital integration process, reflects the two Heads of State’s desire to provide their countries with a secure and interconnected fiber-optic network to increase digital access, boost regional integration and achieve harmonious and integrated development of economies in the sub-region. Technically, the memorandum defines the legal contours initiating the establishment of high-speed communications networks between Cameroon and Chad,” the Minpostel said.
Malawi $1billion trade and investment deal to boost economy (ESI Africa)
Malawi is open for business: The East African country is pursuing various investment and trade deals to help boost their economy and in line with this have signed a $1 billion deal with Egyptian multinational electrical company, Elsewedy Electric. Following negotiations between President Dr Lazarus Chakwera and President and CEO of Elsewedy Electric, Ahmed Elsewedy, the Minister of Trade, Sosten Gwengwe signed the memorandum of understanding (MoU) on behalf of the government in Durban, South Africa. Gwengwe said Elsewedy will bring flagship investments into Malawi in sectors like energy, manufacturing, tourism among others that will help to boost the country’s economy.
Intra-African Trade Fair (IATF 2021) updates
IATF a key platform in propelling continental economic transformation – African Heads of State (African Union)
The Intra-African Trade Fair (IATF2021) kicked off with spectacular fanfare on 15th November. Under the theme “Building Bridges for a successful AfCFTA”, the fair attracted thousands of visitors at the Durban International Convention Centre on its Opening Day.
H.E. Cyril Ramaphosa, President of the Republic of South Africa, declared in his keynote address that South Africa is ready to work with other African countries to drive more balanced, equitable and fair-trade relations for the benefit of the continent. “This Trade Fair is about building bridges. It is about connecting countries. It is about connecting people as well. Now Africa is taking concrete steps to write its own economic success story and this Intra-African Trade Fair is part of that story. Africa is opening up new fields of opportunity” he asserted.
On behalf of the Africa Union Chairperson, H.E Moussa Faki, the AU commissioner Economic Development, Trade, Industry and Mining, H.E. Amb. Albert M. Muchanga said: “In collaboration with African Export Import Bank, we have created the Intra Africa Trade Fair (IATF) an All-Africa Trade Fair that is leveraging trade information in boosting intra-African trade and consequently, attaining and sustaining accelerated development which is both inclusive and sustainable… we also have the African Trade Observatory developed with financial support from the European Union and technical assistance from the International Trade Centre.”
At IATF, multilateral financiers discuss trade initiatives after Covid-19 (AfDB)
Multilateral financial institutions on Tuesday discussed their role in promoting trade under the African Continental Free Trade Area (AfCFTA), an ambitious plan to create the world’s largest free trade zone since the founding of the World Trade Organization. Solomon Quaynor, Vice President at the African Development Bank, said between 2020 and 2021 the Bank planned to invest about $2 billion in projects related to the free trade zone, and to mobilize a further $2 billion from partners. The projects include regional infrastructure and industrialization.
“One of the impacts (of the pandemic) is that we had less resources to support the capital-raising efforts of the African multilateral financial institutions that we are already equity investors in. However, this is the time to turn that around,” Quaynor told the audience in Durban, the South African port city hosting this year’s Intra-African Trade Fair.
AfCFTA yet to take off fully, negotiations 87% completed – FG (International Center for Investigative Reporting)
The Nigerian government on Wednesday said the African Continental Free Trade Area Agreement (AfCFTA) is yet to fully take off despite officially coming into force on January 1, 2021. Minister of Industry, Trade and Investment Adeniyi Adebayo who disclosed this at the ongoing intra-African Trade Fair in Durban, South Africa, confirmed that the negotiations on the rules of origin which is stalling the take-off of the trade deal are 87 per cent completed. The rule of origin is a criterion where participating countries must source their products locally. There is also a provision to guide against trans-shipment of products outside the African market. Also, the rule of origin is enforced to ensure no country dumps goods in another country, thereby violating the objective of the trade deal which seeks to promote African products in African markets.
President Obasanjo Advocates for Made-In-Africa Brand to Instill Pride in African products - African Export-Import Bank (Afreximbank)
The third day of the Intra-African Trade Fair 2021 (IATF2021) ended with a clarion call by former Nigerian President Olusegun Obasanjo for the creation of an emblematic Made-in-Africa brand that will promote intra-African trade and boost the international export of African products. He said that the AfCFTA was working to remove the divisions that were brought about by colonialism, where Africa had been divided into regions based on the languages of the colonisers. According to him, the shared vision of IATF2021 participants and the traders at the Trade Fair is what will bring the AfCFTA to life.
In his contribution, Ebenezer Tafili, Deputy Director, Capacity Building, at the World Customs Organisation, said that the kind of operating environment needed to allow Africa’s ideas to flourish and leverage the free trade agreement was one where the political will of each country matched its potential to grow its manufacturing sector. “The AfCFTA needs political will to support its success, which requires collaborative private-public partnerships to ensure viability,” he said. “Without a strategy to change policy and allow for more manufacturing and industrialisation, the notion that Africans are merely consumers and not producers will continue to exist.”
Afreximbank signs US$1.04 Billion deal with NNPC at IATF2021 (Afreximbank)
African Export-Import Bank (Afreximbank) has signed a $US1.04 billion facility with the Nigerian National Petroleum Corporation (NNPC) to finance the exploration of petroleum. The transaction comprises a Pre-Export/Shipment Finance Facility underpinned by a Forward Sale Agreement (FSA) and Offtake Contracts from the Nigerian National Petroleum Corporation acting as the Borrower and Seller. Prof. Oramah added that Africa is more of a victim than a perpetrator in the emission of destructive greenhouse gases, contributing only a meagre 4%, while a majority of the Continent, ironically having been left behind development wise, still has to depend on fossil fuel for survival, and should thus not bear the brunt of the punishment for the mistakes of others. “Stopping development for parts of Africa today to achieve a clean environment for the whole world tomorrow is utterly foolhardy,” quipped Prof. Oramah.
Brand Africa to rank “Best Places in Africa” (BusinessGhana)
Brand Africa today launched “Brand Africa | Africa’s Best Places,” the pan-African initiative to recognize and rank the best places for tourism, investment and citizen mobilisation in Africa. The goal of the initiative is to inspire pride, raise the standards and grow the competitiveness of African places – countries, cities and destinations. The inaugural awards and rankings of the “Brand Africa | Africa’s Best Places” will be celebrated and published on 1 September 2022. The initiative builds on the inaugural Brand Africa Forum in 2010 which convened African and global place branding decision makers and thought leaders to reflect on how African nations individually and the continent collectively can develop a supranational competitive advantage.
Investment opportunities in Africa in full display at IATF’s Investor Forum (Africa Renewal)
A full day of deliberations focusing specifically on the automotive sector and the pharmaceuticals industry to help grow domestic manufacturing is also taking place. The investor day will focus on investment opportunities on the continent and unlocking cross-border investment by African national champions, focusing on some key sectors and learning from investors and companies who are committed and invested in the African continent.
Africa
AfCFTA could boost maritime trade in Africa (UNCTAD)
UNCTAD’s Review of Maritime Transport 2021 published on 18 November points to positive trends in maritime trade that might sustain economic growth in Africa, notably the entry into force of the African Continental Free Trade Area (AfCFTA) and the potential of technology to facilitate the continent’s trade and transport. The continental free trade area has significant implications for maritime transport and services trade. “The AfCFTA is expected to increase demand for different modes of transport, including maritime transport, which in turn will increase investment requirements for infrastructure and equipment – ports
SSA economy on a steady recovery path (African Review)
After 2020 regional downturn, the International Monetary Fund (IMF) estimated the sub-Saharan Africa (SSA) economy grew at 3.7% in 2021 led by expansion in industry and services but still experienced weaker growth in gross fixed investment. The 2021 recovery masks noticeable diversity across country groups. Growth projections for oil-exporters are (2.2%) due to lower forecast for Angola; non-oil resource-intensive countries (4.7%), reflecting elevated metal prices; and non-resource-intensive countries (4.1%) mainly due to anaemic growth in Ethiopia. While for tourism-dependent countries (Cabo Verde, Comoros, The Gambia, Mauritius, São Tomé and Príncipe, Seychelles) – where travel/tourism constitute 18% of GDP on average – growth is expected at 4.5% or higher.
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Nigeria’s economy (Africa’s largest) will grow by 2.6% in 2021, led by recovery in non-oil sectors and higher oil prices, even though crude production still remains below pre-Covid-19 levels. The IMF expects growth at under 3% level over the medium term, allowing GDP per capita to stabilise at current levels, notwithstanding deep-rooted structural problems and elevated uncertainties.
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South Africa is expected to grow by 5% in 2021, reflecting faster first-half recovery and strong base effects from 2020 to its national accounts. Economic activity faltered in second-half due to June lockdown for four weeks, plus social unrest in some provinces, causing an estimated R50bn losses. Pace of structural reforms to labour and product markets likely to remain sluggish – with real GDP growth slowing to 2.2% in 2022.
Ten reasons to consider African trade and investment opportunities in 2022 (BusinessGhana)
1. Visible Green Shoots – Rising Commodity Prices
The pandemic closed borders and stopped trade, other than for essentials, across the continent and was the principal reason for a decline in investment in 2020. A lack of available capital and acquisition finance, as well as difficulties pricing deals in an uncertain market, also affected investment. Other reasons for declining investment, included that the levels of economic activity have slowed in the major African economies, such as Nigeria and South Africa. However, green shoots are visible and market fundamentals are signalling a region with underlying resilience. Commodity prices are rising and landmark deals are returning to the continent.
2. The Launch of AfCFTA
3. Shifting Patterns and Alternative Financing
4. Global Interest
5. Post-Pandemic Sector Potential
6. Digitization
7. Leapfrogging Traditional Energy Systems
8. Mending Chains
9. Competition Law And Enforcement
10. Environmental Social And Governance
Africa’s development banks: the urgent need for scale (LSE Business Review)
Developing countries in general, and African countries in particular, confront an enormous financing challenge to meet the UN’s Sustainable Development Goals (SDGs), featuring prominently at the 2021 United Nations climate change conference (COP26). Yet, even prior to COVID-19 the prospects of mobilising the annual $2.5 trillion needed to meet the SDGs by 2030 was rapidly receding despite a global savings and liquidity glut. The bulk of SDG funding is needed to close gaps in electricity, transport and water infrastructure in ways that place the continent on a decisive trajectory towards net zero emissions. Concurrently, substantial funding is required for agricultural modernisation and greener industrialisation.
The moral case for international provision of large-scale concessional funding to Africa is overwhelming. African countries are projected to feel the impacts of climate change the most, despite accounting for a minuscule share of cumulative global C02 emissions. Climate funding from multilateral development banks (MDBs) has been growing, but it comes nowhere near the estimated annual African SDG financing gap of $200bn.
Enhancing Free Movement of Persons & Mobility of Labour will spur Africa’s Development (African Union)
The promotion of free movement of persons and mobility of labour are critical in spurring development in Africa. This was the rallying call at a meeting of representatives of Regional Economic Communities (RECs) in Africa, the African Union Commission (AUC), the International Organization for Migration (IOM), the International Labour Organization (ILO) and partners held from 9th to 12th November in Djibouti City.
The African Union recognizes regional integration and especially the free movement of workers as critical for development and migrant workers as crucial in the flow of goods, finance, and knowledge between countries of origin and destination and in building networks beneficial to communities of origin. “We commend all the RECs for the steps they have made in enhancing the integration agenda and labour migration governance across the continent, and the sustained interest for continued collaboration. IOM stands ready to support this agenda and to support the RECs at national and regional levels on the priorities that will be identified during this workshop,” Stéphanie Daviot, IOM’s Chief of Mission in Djibouti said.
African experts discuss food safety on the continent (Food Safety News)
Speakers at a roundtable discussion stressed the need to build capacity, engage policymakers, and use technology to improve food safety in Africa. Ade Freeman, regional program leader for Africa, Food and Agriculture Organization (FAO) said the African Continental Free Trade Area (AfCFTA) offers potential including the opportunity to develop regional value chains. “We know the challenges in Africa with close to a billion people not having access to affordable diets. There are new opportunities created by the AfCFTA and corresponding activities to reduce the risks in trade but also give greater access to market that would make food more affordable for the African population. It is a game-changer and if implemented well I think it will create huge market opportunities,” Freeman said.
AEF 2021: Africa could lead the way in renewables (African Review)
In the wake of COP26, at the Africa Energy Forum (AEF) 2021, heavy focus was placed on the role of renewables in the ongoing quest to end energy poverty on the continent
Wale Shonibare, director of Energy Financial Solutions, Policy and Regulation at AfDB, Côte d’Ivoire, on behalf of Kevin Kariuki, vice-president for Power, Energy, Climate and Green Growth at AfDB, said that the developed world has a duty to support Africa in achieving a successful and fair energy transition but that the continent must not follow in these countries footsteps. “Africa is growing at an accelerated pace and so is the energy demand but the world cannot allow Africa to follow the same development pathway as already developed countries. We are at the turning point and future generations will hold us accountable for our actions.”
EAC member states divided on common external tariff (The New
The East African Business Council (EABC), the top regional body of private sector associations and corporates, is proposing that partner states should adopt a 35 per cent maximum Common External Tariff (CET) rate, The New Times has learned. The development comes after drawn-out negotiations, involving stakeholders from the six-member bloc, highlighting divergent positions regarding a maximum CET rate of 30 per cent or 35 per cent.
John Bosco Kalisa, CEO of the East African Business Council (EABC), told The New Times that the EABC view is, clearly, that 35 per cent is appropriate to spur industrialisation and boost intra-regional trade. “It had been a challenge and the council of ministers needs to make a firm decision and agree on a middle ground to enable trade to take place,” Kalisa said. Ministers in charge of EAC affairs are scheduled to meet from November 26 to 27.
The EABC recommends, among others, that partner states should adopt 35 per cent as the maximum EAC CET rate to provide adequate tariff differential required to incentivize industrial development in the region; and that a maximum CET rate will safeguard goods that are sufficiently available or produced in the region against import surges from countries adopting unfair trade practices.
Why Nigeria, other West African countries must battle illegal fishing (Premium Times)
The 2019 Africa Blue Economy Strategy lists fisheries and aquaculture as one of seven crucial areas for creating sustainable blue economies. Fishing is seen as a relatively untapped sector for Africa’s development and prosperity. It is unlikely to bear fruit though, unless the exploitation of marine resources is curbed. Given the current crisis, urgent measures are needed in vulnerable coastal communities, particularly in West Africa where piracy, armed robbery and kidnapping are rampant. Illegal fishing in West Africa is a challenge on three levels. First, it jeopardises the management of fish stock by disrupting regulatory processes. To achieve a sustainable fishing sector, countries must manage the growth and depletion of fish stocks, enforce safety and operational rules, and delineate areas for fishing and conservation. The second challenge is the damage to food security in coastal communities, where fish provides a significant source of sustenance and, for some, their only income. And third, illegal fishing erodes community trust in law enforcement, creating a sense of lawlessness and neglect. This is an environment in which organised crime thrives, and together with a loss of livelihoods, can fuel local-level violence and other criminality.
The WCO held the working Group Activity one (WG1) on Rules of Origin (RoO) under the Master Trainer Programme for West Africa virtually from 8-12 November 2021. This activity is the first of the Master Trainer Programme on Rules of Origin launched to support West African Customs administrations in developing a “Regional Experts Pool” for more sustainable capacity building in the region and cooperate for smooth and effective implementation of African Continental Free Trade Agreement (AfCFTA) in entire Africa.
The Master Trainer Programme or MTP is a programme conducted under the WCO/JICA(Japan International Cooperation Agency) Joint Project to develop sustainable and self-contained training capacity by 1) developing a pool of well-experienced trainers and 2) regionally featured training materials and programme to be used by these trainers.
International
Members agree on workplan for standards and regulations committee for next three years (WTO)
Discussions on pandemic preparedness, climate change and plastics pollution are included in the workplan agreed by WTO members at a meeting of the Committee on Technical Barriers to Trade (TBT) on 10-12 November. The workplan is part of the Triennial Review of the TBT Agreement. Members also reviewed 89 specific trade concerns, 25 of which were raised for the first time, covering issues related to labelling, testing and safety of products.
WTO Finished Without TRIPS Waiver (Inter Press Service)
Quickly enabling greater and more affordable production of and access to COVID-19 medical needs is urgently needed in the South. Such progress will also foster much needed goodwill for international cooperation, multilateralism and sustainable development.
Supply shortages have disrupted vaccine supplies. IP monopolies block competition, making it hard to quickly increase supplies.
TRIPS provides 20-year monopolies for patents. These have often been ‘evergreened’, i.e., extended, sometimes indefinitely, ostensibly to reward additional innovation. Thus, most developing countries have been prevented from meeting their health needs more affordably. The temporary waiver would allow companies everywhere to produce the required items and use patented technologies without infringing IP. Supplies would increase and prices fall. Currently, access to COVID-19 needs is very inequitable, deepening the yawning gap between HICs and LICs.
Global Value Chain Campaign Seeks to Help Poorest Nations (Duke Today)
A few dozen economic and global development academics have launched a campaign to revamp global supply chains to help the world’s poorest countries compete more fairly. While clogged supply chains hinder the availability of products ranging from new cars to research equipment in the United States, the multilateral trading system needs changing to help the poorest countries and their 880 million people overcome structural challenges and eradicate poverty, among other goals. That’s according to a letter to the World Trade Organization (WTO) from Gary Gereffi, professor emeritus and founding director of the Global Value Chains Center at Duke, and signed by dozens of colleagues around the world.
Attempt to divide LDCs, developing nations: India (Times of India)
India has warned that there is an attempt to drive a wedge between developing and least developing countries (LDCs) on public stockholding and sought a permanent solution to provide comfort on an issue that is critical for procurement by agencies such as Food Corporation of India (FCI).
Ahead of the crucial ministerial meeting in Geneva from November 30, it is still a divided house. Some members, such as the US, are seeking a work programme after the meeting, while the EU and Canada, which shared the view during a meeting in Geneva on Monday, suggested they can support an expansion of public stockholding issue to LDCs.
At the meeting, India warned about the danger of differentiating LDCs from developing members for the sake of reaching a solution and cautioned other members against “falling into the trap”, sources said. There are also disagreements over expansion to new products.
Least developed countries at 50: Mid-life crisis or resilient maturity? (UNCTAD)
The category of the least developed countries (LDCs) was created 50 years ago by UN General Assembly Resolution 2768 (XXVI) of 18 November 1971. It followed the research and policy work done by UNCTAD since its inception, later complemented by the efforts of the Committee for Development Planning. At present these countries find themselves at a crossroads between remaining trapped in the traditional symptoms of underdevelopment or forging ahead and building resilience to intensifying shocks. In this context, the issue of the present suitability and efficiency of the measures put in place over the last 50 years to support these countries needs to be asked.
Remittance Flows Register Robust 7.3 Percent Growth in 2021 (World Bank)
Remittances to low- and middle-income countries are projected to have grown a strong 7.3 percent to reach $589 billion in 2021. This return to growth is more robust than earlier estimates and follows the resilience of flows in 2020 when remittances declined by only 1.7 percent despite a severe global recession due to COVID-19, according to estimates from the World Bank’s Migration and Development Brief released today. For a second consecutive year, remittance flows to low- and middle-income countries (excluding China) are expected to surpass the sum of foreign direct investment (FDI) and overseas development assistance (ODA). This underscores the importance of remittances in providing a critical lifeline by supporting household spending on essential items such as food, health, and education during periods of economic hardship in migrants’ countries of origin.
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Tanzania’s exports to Kenya double to Sh20 billion in six months (Business Daily)
Kenya’s imports from Tanzania doubled to Sh20.5 billion in the first half of the year, on good trade relations between the two neighbouring countries. Data from the Kenya National Bureau of Statistics (KNBS) shows imports from Tanzania grew from Sh10.8 billion in the corresponding period last year. The value of goods exported to Tanzania also grew to Sh17.8 billion from Sh14 billion but the balance of trade remained in favour of Tanzania. Kenya and Tanzania have in recent months mended fences over their differences on trade issues that had previously had a negative impact on the flow of goods.
Improving Tanzania’s infrastructure and business climate: these are the African Development Bank’s priority intervention areas in its Country Strategy Paper 2021-2025 (CSP 2021-2025) published by the Bank on 8 November. Implementing this plan is expected to bolster the East African economy’s competitiveness and develop its human capital. The Bank will support the development of high-quality multimodal transport infrastructure, including roads, waterways, railways and airports. It will also invest in improving networks for producing, transmitting, and distributing clean energy, and upgrading water and sanitation systems. For transport, the focus will be on improving regional, interurban, urban and rural connectivity by road, air and sea to increase access to regional and global markets. In this way, the Bank will play a crucial role by boosting private-sector business activity through reduction in the cost of doing business, and strengthening long-term resilience through social and economic inclusion, particularly by reducing poverty and youth unemployment.
IMF Staff Concludes Article IV Mission to Zimbabwe (IMF)
The COVID-19 crisis impacted an already weakened economy following cyclone Idai and a protracted drought. Containment and support measures introduced by the authorities helped in mitigating the adverse effects of the pandemic. Economic activity is recovering, and mass vaccination continues steadily. But downside risks remain, dominated by the pandemic’s evolution, vulnerability to climatic shocks, and the need to further strengthen macroeconomic policies. Key policy areas relate to allowing greater exchange rate flexibility and tackling FX market distortions, accompanied by appropriate macroeconomic policies; creating fiscal space for critical spending; growth-enhancing structural and governance reforms; and data transparency.
Five Observations on Nigeria’s Central Bank Digital Currency (IMF)
The Central Bank of Nigeria (CBN) officially launched the “eNaira”—a central bank digital currency (CBDC)—on October 25, 2021. This is the second CBDC fully open to the public after the Bahamas. Other countries and regions, such as China and the Eastern Caribbean Currency Union, have been conducting CBDC pilots with a subset of their citizens. Given the size and complexity of Nigeria’s economy, this launch is drawing substantial interest from the outside world—including from central banks.
COVID-19 has hit countries with a health and economic shock whose effects will be felt far into the future. In countries, like Nigeria, that already faced complex development challenges, the pandemic continues to affect health outcomes, human-capital accumulation, household poverty and coping strategies, and labor-market dynamics. A new World Bank report shows both the extent of these impacts on Nigerians and promising policy options that could accelerate the nation’s recovery. The report, “COVID-19 in Nigeria: Frontline Data and Pathways for Policy,” draws on innovative sources of high-frequency data, namely, the Nigeria COVID-19 National Longitudinal Phone Survey (NLPS), to inform the choices that Nigeria’s leaders now face. The NLPS represents a successful collaboration between Nigeria’s National Bureau of Statistics (NBS) and the Data Production and Methods team at the World Bank. It was launched in April 2020 – almost immediately after the COVID-19 crisis began – and has since regularly collected information on key social and economic outcomes, up to 12 times, from households across Nigeria.
E-currency: Chamber of Commerce calls for infrastructural development (GhanaWeb)
The Ghana National Chamber of Commerce and Industry (GNCCI), has called for improved infrastructure to ensure smooth implementation of digital currency and free trade in Africa. The Chamber said there was urgent need for governments across the continent to build railways and dual carriageways that would connect the countries for easy transportation of people and goods to make intra Africa trade attractive. It also noted the need for governments on the continent to quickly provide structures and policies that would transform the economy from a primarily informal sector to a formal one. The above, with public education on the implementation and advantages of the African Continental Free Trade Area (AfCFTA) and e-currency would spur economic growth and job creation on the continent, the Chamber said.
The African Development Bank Group has approved a grant of $1.5 million to Mozambique to boost the development of local content. The grant is earmarked for Small and Medium-sized Enterprises ( SME) targeting local content and women-owned business in the natural resources sector of the nation. The new approval brings the Bank’s total commitment to SME Development to $2.5 million
The new financial contribution approval, from two Bank fund sources - the Affirmative Finance Action for Women in Africa (AFAWA), through the Women Entrepreneurs Finance Initiative (WeFi), and Fund for African Private Sector Assistance (FAPA) - will provide technical and institutional assistance to Empresa Nacional de Hidrocarbonetos (ENH), ‘Mozambique’s national oil company under the LinKar Initiative.
This support follows the Board of Directors approval of a $400 million senior loan project in November 2019 to “Mozambique LNG Area 1.” The loan agreement carried a recommendation to build capacity in developing local companies by specific technical assistance programs in order to create decent jobs in the country.
Africa
Africa needs to fast track digital technology to boost Intra-Africa trade: Economist (SABC News)
A leading African economist says the continent needs to fast track digital technology if it is to achieve economic development and increase Intra-Africa trade.
Chief Economist at Afreximbank, Hippolyte Fofach says Africa also needs to close its technology gap to reach its Africa Continental Free Trade Agreement goals. Speaking with other panelists including South Africa’s Minister of Trade and Industry Ebrahim Patel, the economist elaborates how embracing digitisation can play an important role in unlocking Intra-Africa trade. “And if you look at genetic engineering and robotics all those are applications of IT at a different level. They will help Africa address its productivity and competitiveness. We see trade increasingly driven by manufactured goods with increased technological content which today accounts for 80% of global trade.”
AfCFTA secretariat charges African governments on value addition, trade deficit (The Guardian Nigeria)
The African Continental Free Trade Area secretariat has admonished African countries to focus on the production of consumer goods to discourage the importation of goods into the continent. According to the Chief Technical Advisor of the Secretariat, Prudence Sebahizi, trade deficit can be resolved when African countries add value to their exported resources. Speaking at the ABSA-UPSA Law School Quarterly Banking Roundtable discussion, he opined that African countries should have a robust economic structure that will facilitate trade finance. “Most African countries are exporting unprocessed products, but import finished products which means they get less in what they are exporting in return. The solution is for us to add value to what we are producing,” he said.
Africa strives to be the world’s next automotive industry hub (IOL)
AFRICA is positioning itself as the next hub for the multibillion-dollar automotive industry as a number of countries look to start implementing the continental free-trade agreement. The secretary general of the African Continental Free Trade Area (AfCFTA) Wamkele Mene yesterday urged African countries to show strong political commitment to the agreement.
Speaking during the Automotive Forum at the second day of the Intra-Africa Trade Fair (IATF 2021) yesterday, Mene said the successful implementation of the AfCFTA would significantly reduce costs for business and make continental companies more competitive. Currently, South Africa is host to the largest multinationals assembly plants in the continent. “We should not forget that the automotive industry is a hyper competitive global industry which strives on efficiency and the elimination of waste,” Mene said.
Significant Reforms Made to Improve Ease of Doing Business in SA - Head of Invest SA (The Department of Trade Industry and Competition)
The Acting of Head of Invest South Africa, a branch of the Department of Trade, Industry and Competition (the dtic), Mr Yunus Hoosen says significant reforms have been made to improve the ease of doing business in South Africa. Hoosen was speaking during the South Africa Investment Technical Session at the Intra-African Trade Fair (IATF) currently taking place in Durban, KwaZulu-Natal. The session was aimed at unpacking South Africa’s ease of doing business and investor financial support packages.
South Africa has taken note of the World Bank’s study on the ease of doing business and is currently developing a comprehensive Ease of Doing Business Programme in South Africa. “At the advent of the 6th administration, President Cyril Ramaphosa outlined that South Africa needed to improve ease of doing business and set out the investment improvement programme by which government champions the ease of doing business programme through the Treasury and other government departments and entities,” said Hoosen.
Sub-Saharan Africa struggles to shake off COVID-19 impact on economy (ZAWYA)
A period of high metal and energy prices is typically good for resource-rich sub-Saharan African (SSA) economies, but that’s not the case for the region now, during a bullish commodity cycle. Instead, SSA economies are expected to limp towards recovery as vaccination rates remain low and many economies have yet to recover from COVID-19. The International Monetary Fund’s latest forecast expects sub-Saharan Africa region to grow by 3.7 percent in 2021 and 3.8 percent in 2022, as rising commodity prices and robust agriculture productions are countered by new waves of the pandemic, structural challenges and high debt levels. “[Sub-Saharan Africa’s] recovery is expected to be slower than in advanced economies, leading to a widening rift in incomes. This divergence is expected to persist through the medium term—partly reflecting different access to vaccines, but also stark differences in the availability of policy support,” the IMF said in its latest report.
Key African exports such as copper, cobalt, lead, manganese, nickel and zinc are enjoying a price boom, and food commodities such as coffee, sugar and wheat have also seen record high prices this year, while crude oil, natural gas and coal prices are resurgent amid a global economic turnaround. But African economies have struggled to ride the commodity wave due to challenges to the boosting of production across much of the commodity complex.
Public-Private Partnership a viable path for Africa’s economic recovery; African Private Sector Forum (African Union)
To set Africa firmly on the path towards economic and social transformation, private sector engagement is crucial. The 12th African Private Sector Forum has concluded its three-day meeting in Cairo, Egypt, providing a platform for information exchange, business networking and adopting policy recommendations on Africa’s development priorities, with a focus on Strengthening African private sector’s capacity to respond to disrupted markets and ensure economic resilience in the face of COVID-19 Pandemic. The Forum was strategic to establish and/or expand partnerships with the private sector through Public-Private Partnership (PPP) engagements, particularly underpinned on Africa’s response to the effects of the COVID-19 crisis and to build resilience and help recovery of businesses and economies.
Among the recommendations, is the need to strengthen the capacity of the African Private Sector to have a “Made in Africa” Products that are competitive, Value added, standardized and of high quality, and the promotion of the “Made in Africa” products to increase Intra-Africa Trade and particularly following the start of trading under the African Continental Free Trade Area (AfCFTA). The African Union Commissioner of Economic Development, Trade, Industry and Mining Amb. Albert Muchanga revealed that the AU Commission is currently in the process of establishing a “Made in Africa” standard that will promote quality and productivity in addition to contributing to the elimination of technical barriers to trade.
EAC bloc inches closer to finalising AfCFTA Tariff Offers (EAC)
The East African Community is making strides in conforming to trading requirements under the African Continental Free Trade Area (AfCFTA), with plans underway to finalize the EAC Tariff Offer. The EAC Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) has directed the EAC Secretariat to convene meetings with experts, by 15th December 2021, to finalize the EAC Tariff Offer. The EAC Tariff Offer currently stands at 85.86% against the AfCFTA modalities of 90%. The Secretariat was also directed to revise the EAC Schedule of Specific Commitments on Trade in Services and review the Trade in services offers made by State and Non-State Parties for the AfCFTA.
The East African Community Sectoral Council on Finance and Economic Affairs (SCFEA) has agreed on a Hybrid Model of financing the EAC budget. A two-day retreat of the SCFEA held in Mombasa, Kenya from 15th to 16th November, 2021 further recommended to the EAC Council of Ministers, the policy making Organ of the Community, to approve the model as the new financing mechanism for the EAC. The new model requires EAC Partner States to contribute equally 65% of the budget while the remaining 35% of the total budget will be contributed based on the assessment of Partner States’ average nominal GDP per capita for the previous five years as assessed by the World Bank. The agreement on the new model came after the findings of a study on the required reforms to align the EAC structure, programmes and activities with the financial resources available from EAC Partner States in order to ensure sustainability of the Community while addressing the dependency syndrome.
Set for the Summit as ministerial meetings end (COMESA)
The 17th Meeting of the COMESA Ministers of Foreign Affairs (MoFA) took place Tuesday, 16 November 2021, ahead of the 21st COMESA Heads of State and Government Summit set for Tuesday, 23 November 2021 in Sharm El Sheikh, Egypt. The MoFA is part of the ministerial meetings whose priority issues will be presented to the Summit alongside that of the Council of Ministers whose meeting took place on 9 November 2021.
Coming at a time when the aftermath the COVID-19 pandemic is being felt across the region, the leaders are expected to rally towards economic recovery and building country and regional resilience against future shocks. The development and use of digital tools to drive this process has identified during the ministerial meetings as one of the drivers to regional trade which provides the bulwarks towards economic recovery. The adoption of the COMESA Digital Free Trade Area initiative (DFTA) is expected to gain traction after this summit. The DFTA involves use of digital tools as opposed to physical documents mainly used in cross border trade. Under this initiative, COMESA has developed digital tools to enhance digital transformation including e-trade, e-logistics and e-legislation.
ECOWAS Finance Ministers deliberate on Community Levy (Graphic Online)
Finance Ministers in the ECOWAS region last Friday held their Sixth Meeting in Accra, Ghana, to deliberate on the Community Levy. The meeting was also focused on the consolidation of the ECOWAS Customs Union. The Sixth Finance Ministers’ Meeting was intended to help the participants to examine and approve the various community legislation, aimed at enhancing the fluidity of intra-community trade as well as to strengthen the ECOWAS Customs union.
Digital identity among African cross-border trade issues UNDP seeks research on (Biometric Update)
The United Nations Development Programme (UNDP) has published a call to tender for the selection of a firm to conduct a continent-wide study aimed at detecting the priorities of African businesses for cross-border trade on the continent, within the context of the Africa Free Trade Continental Area agreement (AfCFTA). The perspective of African businesses and other stakeholders on digital identity is among the areas the UNDP is requesting analysis in. The study will highlight the priorities, opportunities, and challenges for digital trade in the One African Market. According to the tender notice published by Reliefweb, the project will seek the views and opinions of African businesses and other stakeholders on a broad range of issues such as digitally driven cross-border trade in goods and services, cross-border data flows, digital taxation, digital trade facilitation, digital work, mobility of technology-driven businesses, consumer protection and digital identity.
Exploring Africa’s trade with network advantage (The Nation)
Trade is the lifeline of great economies. For Nigeria and many Africa countries, trade not only cement inter-country relationship, but helps to bring prosperity to the people. Still, businesses that will tap from the opportunities presented by trade, including the $93 billion transactions that happen informally across the African continent, are those that have the identified network and technological backbone to harness such benefits.
Africa Oil Week closes with high-value deals, and strong intent for future investments in the continent (BusinessGhana)
Africa Oil Week, Africa’s biggest and most prestigious upstream conference ended on Thursday with high-value deals, and strong intent for future investments in the continent. The event, which was held from 8th to 11th November 2021 at the Madinat Jumeirah in Dubai - making it the first edition in AOW’s 27-year history to be held outside of the continent - was supported by key sponsors including TotalEnergies, Eni, ADNOC, Chevron, Shell and Equinor, among others.
With more than 45 Ministers and Government leaders attending the power packed event, along with two Commissioners from the Africa Union, and several NGOs, AOW 2021 included comprehensive discussions about the future of the continent both in terms of achieving the green agenda, and zero emission targets, but also using the oil and gas revenues to improve healthcare, socio-economic developments, and the standard of living of the African people. Currently home to 1.2 billion people, with an additional estimated population of 600 million below the age of 25 by 2050, the continent relies on the energy sector to power wealth creation, entrepreneurship, private sector expansion and industrialisation. Staying committed to the UN SDGs and the African Union Agenda 2063, the organisers of Africa Oil Week also announced launch of the inaugural Green Energy Africa Summit 2022 (GEA Summit) on the first day of the conference. The GEA Summit will focus on driving investments into low-carbon energy for Africa, by bringing together key stakeholders to facilitate innovation and dialogue, driving capital for the socio-economic development of Africa.
A continental effort to alleviate Africa’s food crisis through modern (IPPMedia)
African regions, predominantly the Sahel and southern Africa, are particularly vulnerable, with poverty and food insecurity expected to rise in the wake of a regional slump in food production. While this paints a rather gloomy picture, there’s a bright glimmer on the agricultural horizon. The explosive growth of agriculture technology (AgTech) start-ups is offering opportunities to leapfrog the current agricultural constraints on the continent. Powering a new farming era, global AgTech solutions have seen a 110 percent growth rate over the past two years with little sign of abating. Disruptive technologies in agriculture consist of digital and technical innovations that enable farmers and agribusiness entrepreneurs to circumvent current methods to increase their productivity, efficiency, and competitiveness.
Due to the increasing demand for contextualized agricultural solutions, sub-Saharan Africa has seen a proliferation of these technologies over the last decade.
China, Africa boost trade cooperation despite COVID-19 (China.org.cn)
China and Africa have maintained robust economic and trade cooperation, despite COVID-19, as their bilateral trade has set a record high in the January-September period. Trade between China and Africa rose 38.2 percent year on year to 185.2 billion U.S. dollars in the January-September period, reaching the highest level in history for the same period, Chinese Vice Commerce Minister Qian Keming said Wednesday. China’s direct investment in Africa hit 2.59 billion U.S. dollars in the first nine months, up 9.9 percent, year on year. The growth rate is 3 percentage points higher than China’s overall outbound investment, Qian said, adding that the growth rate outperformed the pre-pandemic level in the same period of 2019.
China to take various measures to expand imports from Africa: Chinese trade official (Global Times)
China-Africa trade has been well-balanced over the long run, and China never aims to pursue a trade surplus with Africa and will take various measures to help expand imports from the continent, a senior official with China’s Ministry of Commerce (MOFCOM) said on Wednesday, as China steps up communication and cooperation with Africa, despite certain foreign interference. ”China will continue to support African countries and Chinese companies to make good use of various measures to further expand the scale of imports from Africa, and promote the high-quality development of China-Africa trade, Qian Keming, vice minister of the MOFCOM, said during a press conference on Wednesday, when responding to a question about concerns among some African countries over their trade deficit with China.
Climate-related news
Alarm over funding gap for adaptation (The East African)
Adaptation costs in developing countries due to damages caused by climate change are up to 10 times greater than what these countries receive for the same, warns the Executive Director of United Nations Environment Programme (UNEP), Inger Andersen. And this adaptation finance gap could be worsened by the rising cost of servicing debt among developing countries since the onset of the Covid-19 pandemic. Speaking at the launch of the 2021 Adaptation Gap Report on Thursday at the climate talks in Glasgow, Ms Andersen said there is a critical need to find new ways to finance countries that are no longer eligible to borrow at concessional levels since the Covid-19 recession. The UNEP director put the costs of adaptation for developing countries at between $140 billion to $300 billion per year, expected to rise to $280 billion to $500 billion per year by 2050.
COP 26 Events Address Agriculture’s Role in Net Zero | News | SDG Knowledge Hub | IISD (IISD)
The agriculture and food sectors are critical to achieve net zero emissions, and a series of events on the COP 26 sidelines explored aspects of this transition. The Food and Agriculture Organization of the UN (FAO) convened the following discussions during the second week of the Glasgow Climate Change Conference (UNFCCC COP 26), with one introducing a new private sector facility for climate action in agriculture and land use. An event on 8 November explored the ways in which emissions-intensive sectors, like agriculture and land use, can decarbonize, and how can the private sector help. The event, Engaging the private sector to implement agriculture and land use priorities of NDCs and NAPs, brought together private sector actors in the agriculture and land use sectors to discuss their work in developing public-private partnerships based on Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs). It was organized by the Scaling up Climate Ambition on Land Use and Agriculture (SCALA) programme, which is jointly run through the FAO and the UN Development Programme (UNDP).
Africa should adapt to climate change effects (IPPMedia)
The main cause is the emission of greenhouse gases, mostly carbon dioxide (CO2) and methane. Burning fossil fuels for energy use creates most of these emissions. Agriculture, steel making, cement production, and forest loss are also significant sources.[3] Temperature rise is also affected by climate feedbacks such as the loss of sunlight-reflecting snow cover, and the release of carbon dioxide from drought-stricken forests. Collectively, these amplify global warming. The global centre on adaptation says climate change will push 120 million people into extreme poverty by 2030, and a third of them will be Africans if nothing is done to mitigate its effects. The findings are in the center’s report on Africa released recently. Releasing the report looking at present-day and future climate change risks in Africa, the head of the Global Centre on Adaptation, Patrick Verkooijen, says the climate crisis may create millions of poor people on the continent.
International
DDG Ellard highlights recent trade remedy trends, importance of concluding fisheries talks (WTO)
Recent trends in trade remedies should be viewed in the broader context of the COVID-19 pandemic, which brought the global economy to a standstill. Across the world, production and consumption scaled back and international trade appeared to be on its way to a persistent decline. However, this past summer, global merchandise trade began to recover, and by the end 2020, it was strongly rebounding in many countries and sectors.
Global trade continued to grow in the first half of 2021, as value chains recovered and demand in advanced economies increased. According to the latest WTO forecast, the volume of global merchandise trade is predicted to grow by 10.8% in 2021, followed by a 4.7% rise in 2022. However, many developing countries are not experiencing this growth, and this trend is deeply concerning. In response to the challenges and pressures created by the COVID-19 pandemic, governments across the world used quite a few trade policy instruments. We’ve seen the application of both tariff and non-tariff measures: some aimed at facilitating trade, and others, such as export restrictions, aimed at limiting it. In an effort to save their economies, some governments have adopted unprecedented state support measures.
Vulnerabilities, resilience in global trading system examined in World Trade Report 2021 (WTO)
The report conveys three main messages: first, today’s hyper-connected global economy, characterized by deep trade links, has made the world more vulnerable to shocks, such as natural and man-made disasters, but also more resilient to them when they strike. Second, policies which aim to increase economic resilience by unwinding trade integration — for example, by re-shoring production and promoting self-sufficiency — can often have the opposite effect, effectively reducing economic resilience. And third, strengthening economic resilience will require more global cooperation, both regionally and multilaterally.
DDG Gonzalez highlights benefits of global value chains for LDCs (WTO)
Over the past three decades, global value chains have powered a complete transformation of global trade. A transformation that creates tremendous opportunities for LDCs. In a world of global value chains, LDCs no longer need to build whole industries from scratch to be part of the global economy. They can instead specialize in specific tasks along the global value chain and leave more complex tasks to other countries. LDCs that join global value chains can gain a double dividend. Their most productive firms specialize and expand, lifting overall productivity. And local firms gain access to better and cheaper inputs, and they link with foreign firms, which pass on the best managerial and technological practices. As a result, LDCs that become part of global value chains can see faster income growth and falling poverty.
WTO may propose new agriculture package (Economic Times)
Ahead of a key ministerial conference, the World Trade Organization (WTO) is likely to float a revised draft text for a possible agriculture package to break the deadlock in farm talks at the meeting later this month. Possible immediate deliverables on improved transparency, including on shipments en route or advance notice for
export restrictions, language on a possible exemption from export restrictions for UN World Food Programme, and the possibility of including specific post-ministerial deadlines for some topics, could be part of the package. The revised text will be presented by chair of agriculture negotiations, Costa Rica’s Gloria Abraham Peralta, later this week. The previous text was introduced in July.
The proposed package comes after talks on farm subsidies got stuck as China, India, the African Group, and the Group of African, Caribbean and Pacific countries insisted that trade distorting subsidies given by developed countries be checked first.
Hope for airlines as global travel shows signs of revival (Business Daily)
The global aviation industry is showing signs of recovery as more countries open their borders with an increase in the rate of vaccinations, giving hope to the sector that was hit hard by the Covid-19 pandemic. International Air Travel Association (IATA) says the sector recorded an 18 percent growth in September when compared with the previous month, coming as good news to the sector. Major economies across the world including the US, India, China and a host of European countries have opened up their borders to tourists. Last month, the US announced that it had started allowing fully vaccinated tourists following months of restriction, with India following suit this week.
China’s digital currency: Next stop, Africa? (The Interpreter)
In April 2020, China was the first major economy to pilot a digital currency, the e-yuan or e-CNY.
In offering citizens an alternative to decentralised cryptocurrencies such as Bitcoin (which China has banned) and partnering with the country’s tech giants who currently dominate the electronic payment space, China is neutralising key external and internal threats to its governance and control of monetary policy. A recent Interpreter article notes that China’s immediate focus is domestic. However, earlier this year, Huawei introduced into the African market the Mate 40, a smartphone with a pre-installed e-CNY wallet that uses the DCEP network. It appears that China’s secondary focus may very well be Africa – with an eye towards disrupting the global financial system. In going digital, China retains visibility over financial transactions, even if it loosens capital controls and makes the yuan more easily convertible.
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National
Maersk - Grindrod JV to offer end-to-end logistics in South Africa (Logistics Update Africa)
A. P. Moller - Maersk announced its intention to form a joint venture with Grindrod Group in order to enhance its capabilities as an integrated logistics player in South Africa. “Through this proposed joint venture, the logistics activities of Grindrod Intermodal business and the ocean activities of Ocean Africa Container Lines (OACL) will complement Maersk’s current ocean capabilities and logistics & services, enabling customers seamless access to a wider range of end-to-end supply chain solutions,” reads the release. Maersk will have a 51 percent share in this proposed joint venture which will increase access to landside infrastructure and capabilities which are critical to delivering reliable logistics solutions.
Phase 2 of Beitbridge border upgrading gets under way (The Herald)
Civil works for the Beitbridge Border Post modernisation under Phase 2, which includes a bus terminal, have begun in earnest. Zimborders Consortium, in partnership with the Government of Zimbabwe, is upgrading Sadc’s busiest inland port of entry at a cost of US$300 million under a 17 and half-years build operate and transfer concession. The works are being carried out in three phases which include the freight terminal (phase 1), the bus terminal (phase 2) and the light vehicles terminal (phase 3). Zimborders Consortium chief executive officer Mr Francois Diedrechsen said they had moved to phase two after successfully completing the new freight terminal which opened to traffic last month
Namibia - Country Strategy Paper (CSP) 2020-2024 (AfDB)
The African Development Bank Group’s Country Strategy Paper (CSP) 2020-2024 for Namibia lays out the strategy that will guide Bank support to the country for the achievement of sustainable and inclusive growth. The Bank’s Committee on Operations and Development Effectiveness (CODE) discussed the strategic thrust of this CSP during its consideration of the CSP 2014-2018 Completion Report on 8th November, 2019.
Kenya’s economy signals recovery from pandemic slump (The East African)
The Kenyan economy has shown signs of recovery from the Covid-19 pandemic after posting a 10.1 percent growth in the second quarter (April-June) of this year helped by rebound in activities in the manufacturing, financial, transport and the hospitality sectors. But macroeconomic indicators are pointing to the need to cushion the economy further from shocks related to the pandemic, which has continued to ravage most sectors of the economy, according to the latest data from the Kenya National Bureau of Statistics. Government figures shows that the country’s gross domestic product for the three months period to June grew by 10.1 percent from a contraction of 4.7 percent in the same period last year. Economic growth for the first quarter (January-March) this year decelerated to 0.7 percent from 4.4 percent in the same period last year.
State targets to bring 15 million SMEs under its watch (The Star, Kenya)
The government targets to formalise at least 15 million Small and Medium Enterprises in the medium term in what could be a big win in expanding the country’s tax base. The initiative spearheaded by the Micro and Small Enterprises Authority (MSEA), in partnership with United Nations Development Programme (UNDP) will develop a comprehensive database for Micro and Small Enterprises and a central reference point for information dissemination. MSEA has created an online platform that allows small businesses in the informal sector to register associations, which will be overseen by the authority.
Kenya delays trade mission to Uganda to resolve sugar, milk standoff (The East African)
Kenya has postponed a trade mission to Uganda to resolve the sugar and milk import standoff until December, amid jitters on whether the two countries are ready to find a lasting solution to the impasse. Principal Secretary State Department of Livestock, Harry Kimtai, said the November meeting will not take place as planned as the Kenya Dairy Board was not ready.
Uganda had last month invited Kenya’s Agriculture and Trade ministerial teams to Kampala for dialogue to clear the stalemate. Ugandan High Commissioner to Kenya and the Seychelles, Hassan Wasswa Galiwango, last month in Nairobi said: “Uganda is supposed to export milk to Kenya but there is a problem that will be resolved soon. We have invited the government of Kenya to send a delegation to inspect Uganda milk factories, to ascertain Uganda’s capacity to produce [exportable] excess.”
Unprecedented policy support, robust remittances, efforts to step up the vaccination rate, and progress in structural reforms are supporting economic recovery in 2021, with growth projected at 10.2 percent, from a sizable contraction of 3.4 percent in 2020. The outlook is benefiting from positive spillovers from the global recovery. Policies to attract private sector investment and manage climate change will remain key for more durable, inclusive, and resilient growth.
To address social challenges and limit pandemic scars, the authorities should protect social programs and sustain human capital investments while implementing a growth-friendly fiscal consolidation supported by a credible revenue mobilization and an improvement in spending efficiency. Fiscal risks should continue to be closely monitored by transparent reports of performance of public-private partnerships and state-owned enterprises.
Uhuru’s budget for new President signals higher taxes (Business Daily)
President Uhuru Kenyatta’s last budget will put his successor under pressure to raise Sh342.20 billion additional revenue to implement his preferred projects, setting up Kenyans for higher taxation. Mr Kenyatta’s administration has proposed a budget of Sh3.31 trillion for the financial year starting July 2022, a month before he leaves office at the end of the constitutional two-year term. The Treasury plans to spend Sh278.81 billion or 9.2 percent more than the budget for the current year in a bid to enhance investments in Mr Kenyatta’s legacy projects under the Post-Covid-19 Economic Recovery Strategy and the floundering “Big Four” Agenda.K enya will continue to splurge on infrastructure projects and a stimulus plan to maintain economic growth in the face of the coronavirus crisis, which delivered layoffs and business closures.The additional revenues needed to fund the bigger budget will most likely trigger an aggressive pursuit of tax cheats and possible increase in taxes.
How Covid-19 pushed women traders in Uganda to go online, crack new markets (The East African)
Covid-19 has claimed millions of lives and taken a toll on the wellbeing of communities, affecting livelihoods and changing the way people do things. Many businesses have collapsed and individuals have lost jobs. Anti-pandemic measures such as the lockdown led to a drop in the prices of the bananas grown in Sheema from about Ush10,000 ($2.80) to Ush500 ($0.10) a bunch. A source of income, away from agriculture was thus needed.
Exporter Seeks Intervention Funds for Export Market (This Day)
A Renowned Agro-allied Exporter and Chief Executive Officer (CEO) of Sourcing and Produce, Mr. Lanre Awojoodu, has called on the federal government create access to loans for exporters in their quest to be part of the regulated global commodity platform.
He said that now is the crucial time for government to make funds available for exporters of agricultural produce and suggested that an NXP pre-financing scheme would be the best option as it would enable government to identify exporters who have a track record of NXP’s to get available affordable loans for their export businesses.
He noted that a framework along this line would be positive for the country’s non-oil export sector as it would make government to see more exporters using importer and exporter foreign exchange (FX) window.
State to streamline micro and small enterprises (The Standard)
The government will register five million micro and small business persons under the relevant State agency in the next one year to formalise the sector. According to the Micro and Small Enterprises Authority (MSEA), there are about 15,000 individuals from 467 associations registered in the sector. MSEA chief executive Henry Rithaa said the exercise is key for planning and streamlining the sector. Mr Rithaa, who was speaking during the handover of equipment to the agency, including vehicles from the United Nation Development Programme (UNDP) to assist in the registration process, said the database will be key in assisting the government and other agencies to support specific intervention targeting specific micro and small enterprises.
We are moving quickly away from dependence on oil – Osinbajo (P.M. News)
Nigeria’s Vice President, Prof. Yemi Osinbajo has said the nation is moving quickly away from dependence on oil and supporting Nigerian exporters through its various agencies. Prof. Osinbajo also urged exporters to take advantage of opportunities for growth in the African market through the African Continental Free Trade Area, AfCFTA. The Vice President stated this on Wednesday when he received at the Presidential Villa, a delegation of major agro-exporters in the country.
Highlighting the approval of the National Development Plan on Wednesday by the Federal Executive Council, the VP stated that “one of the major components of that Plan is that we are trying to move away as much as possible from our dependence on oil and gas proceeds as our major sources of foreign exchange. You have seen a trend towards that in revenue figures.”
He further said, “we believe attention needs to be paid to exports generally. Of all the various plans of government that we have, one of the critical things for us now is that we all know that we are moving away very quickly from oil.”
ICA recommends growth strategies for a healthy credit economy (Vanguard)
The Institute of Credit Administration, Nigeria has emphasized the need to enact policies and provide incentives that will encourage the growth of the credit economy and boost a healthy financial sector. It gave this advice in its report on ‘ICA blueprint report for growth, development and sustainability of financial services sector in Nigeria’.
Ghana to become chocolate hub by 2030 - COCOBOD boss (Graphic Online)
The Ghana Cocoa Board (COCOBOD) has given an assurance that it will continue to facilitate the adequate production and reliable supply of cocoa beans for local processing and export. That plan is also part of an initiative to support the private sector and position the country to become the chocolate and confectionery hub of Africa by 2030. That, the regulator said, was the surest way to leverage Ghana’s increasing trend of cocoa production to become a key player in the global value chain and achieve prosperity for farmers. The Chief Executive Officer (CEO) of COCOBOD, Mr Joseph Boahen Aidoo, who gave the assurance at the third Ghana Cocoa Awards in Accra last Friday, challenged entrepreneurs, investors and other relevant stakeholders to partner the government to establish chocolate manufacturing firms that could profit Africa’s over 1.2 billion consumers and beyond.
Intra-Africa Trade Fair (IATF2021)
Intra-African Trade Fair to build bridges between countries (Engineering News)
President Cyril Ramaphosa said the Intra African Trade Fair 2021 (IATF2021) would bridge gaps between governments as it aspires to connect all the regions of Africa to deepen economic integration and boost intra-African trade and investment. He addressed the opening session of the trade show, which is being held in Durban, from November 15 to 21.
‘Intra-African trade: Chance to create wealth’ (The Herald)
ZIMBABWEANS, particularly youths and women, can create wealth for themselves by taking up opportunities generated by the opening up of Intra-African trade, which will benefit all the continent’s 55 countries, President Mnangagwa has said. Dubbed Africa’s premier trade fair, the IATF summit which runs until Sunday will see deals worth US$40 billion completed while Zimbabwe is in line to benefit from a US$40 billion fund that has been provided by the Afreximbank for the next five years to all African countries as capital for transactions that promote trade within the continent.
Buhari, Obasanjo, Oramah prescribe ways to deepening Intra- African integration As Afreximbank commits $40b to support African trade in 5yrs (The Guardian Nigeria)
To deepen Intra African trade President Muhammadu Buhari has stressed the need for government in the continent to deploy more funds to support local entrepreneurs, increase their capacity and improve productivity. Buhari stated this at the opening session of the ongoing 2021 Intra-African Trade Fair ( IATF) in Durban, South Africa. According to him, the support would focus more in the areas of incentives that would enable businesses formalise and comply with laid down regulations. “What we are doing firstly is to build infrastructure. Between 1999 and 2014, Nigeria was producing 2.1 million barrels a day which cost us $100 per barrel, when we came, the militants were unleashing on us and production went down to half a million barel a day.
He expressed optimism that African trade would increase significantly by 2030 which would ultimately help reduce the continent’ s over reliance on importation if the opportunities in the intra African trade is optimised.
ITC, AfreximBank launch export capacity building programme at IATF2021 (Chronicle)
THE International Trade Centre (ITC) has partnered with the African Import-Export Bank (Afreximbank), to launch a new training programme aimed at capacitating small businesses on how to export within the African Continental Free Area (AfCFTA).
Designed using a problem-solving approach, the new training programme uses case studies to examine key export concepts in relation to enterprises and the challenges faced in the export field. The concepts include export readiness, market research, market development, market access conditions, trade finance and international logistics. Under the programme, entrepreneurs will benefit from the focus on intra-African export operations and advantages related to intra-regional trade.
In South Africa, Buhari Says Africa Must be Marketplace Where No Country is Left Behind (This Day)
President Muhammadu Buhari Monday lauded Africa’s collaborative journey towards collective economic prosperity through the African Continental Free Trade Area, adding that “Africa must be a marketplace where no country is left behind.” In his address Monday at the opening ceremony of the Intra-African Trade Fair 2021 at Durban, South Africa, President Buhari said “under the African Continental Free Trade Area, we can double our intra-Africa trade by 2030, reduce our reliance on imports and therefore create more jobs within the continent.” He said he Iooked forward to seeing more African products manufactured in Africa using African resources, noting that AFCFTA is for “made-in-Africa” products and services. The President said most of Africa’s existing challenges, whether security, economy or corruption, confronting Africa can be traced to the continent’s inability over the years to domesticate the production of its most basic requirements and provide jobs to its teeming and dynamic youth population.
PM Ngirente makes case for intra-Africa trade (The New Times)
Prime Minister Edouard Ngirente has called on African leaders to focus on the newly launched African Continental Free Trade Area (AfCFTA), saying it was a key player to boosting Intra-African trade and investment.
Intra-African Trade Fair must inspire African youth (SAnews)
‘AfCFTA brightens prospects of African Diaspora investing in Africa’ (Modern Ghana)
AfCFTA: Ghana must accept biotech products (News Ghana)
It’s Cote d’Ivoire for IATF2023 (Afreximbank)
Cote d’Ivoire has been announced as the host for the third edition of the Intra-African Trade Fair in 2023.
The Intra-Africa Trade Fair is seen as a vehicle towards the achievement of the African Continental Free Trade Area Agreement (AfCFTA) which came into force on January 1, 2021 and brings together a support bedrock of about 1.3Billion people with a cumulative GDP of about USD 4Trillion.
While addressing the opening ceremony of the IATF2021 at the Durban International Conference Centre on 15th Nov 2021, the President and Chairman of the Board of the African Export-Import Bank Prof. Benedict Oramah said that the concept of a trade fair to spur the growth and development of the AfCFTA could not have come at a better time, given the fruits of the inaugural event in Cairo, Egypt in 2018 which was graced by 1,100 exhibitors and about 7,000 participants from 45 countries.
During that event according to Prof. Oramah, deals worth about 32 billion US dollars were facilitated and to date about 25 billion US dollars of the deals have been implemented, with another 2.5 billion US dollars being processed, a representation of an incredible success rate of 83 percent.
Africa
13 countries urged to ratify trade deal (The East African)
Countries yet to ratify the African Continental Free Trade Agreement (AfCFTA) have been urged to do so. Speaking virtually to Ugandan government officials on Wednesday, AfCFTA Secretary General Wamkele Mene said that so far 41 of 54 signatories to the pact had ratified the agreement, with talks still ongoing to get the rest on board. His address was part of Uganda’s national dialogue on the AfCFTA.
“Regarding outstanding ratifications, the Secretariat continues to engage the countries that have not yet ratified it to do so as a matter of urgency, subject to their domestic legal requirements. We do however recognise that the issue of ratification is a sensitive matter that is domestic, legal and political in nature,” Mene said. He said the implementation of the trade agreement is challenged by lack of clarity on issues such as rules of origin, tariff schedules and services sector commitments and partner states negotiations.
African business watchdog urges South Sudan to ratify AfCFTA (News Ghana)
The East African regional business and private sector watchdog on Monday urged South Sudan to ratify the African Continental Free Trade Area (AfCFTA) to boost the country’s trade. John Bosco Kalisa, the chief executive officer of the East African Business Council (EABC), said South Sudan, the only EAC member state yet to ratify the agreement, stood a chance of boosting its trade with the ratification of the AfCFTA. Other member states of the EAC that have ratified the agreement are Tanzania, Kenya, Uganda, Rwanda and Burundi.
Kalisa said South Sudan boasted of a competitive advantage in the livestock and agriculture sector, and small and medium enterprises in leather and butter industries.
He added that the leather and butter industries in South Sudan ought to be integrated into the regional value chain to boost production capacity and export more to the African continent.
Ten reasons to consider African trade and investment opportunities in 2022 (Lexology)
1. Visible green shoots – rising commodity prices: The pandemic closed borders and stopped trade, other than for essentials, across the continent and was the principal reason for a decline in investment in 2020. A lack of available capital and acquisition finance, as well as difficulties pricing deals in an uncertain market, also affected investment.
2. The launch of AfCFTA: To-date, 38 countries in Africa had ratified the African Continental Free Trade Area (AfCFTA) agreement and 54 countries have signed it.
Closer integration of neighboring economies is providing a potential avenue for creating scale and competitiveness through domestic market enlargement, promoting development through greater efficiency. AfCFTA is also acting as an impetus for African governments to address their infrastructure needs as well as to overhaul regulation relating to tariffs, bilateral trade, cross-border initiatives and capital flows. There has been an urgent imperative to identify and enable new sources of finance, outside of traditional lenders and international partners, to address Africa’s infrastructure gaps in, for example, transportation, energy provision, internet access and data services, and education and healthcare infrastructure in Africa.
6. Digitization: Digitization is enabling the development and harmonization of a regulatory framework to integrate Africa’s digital economies, crucial to be able to operate in the post-pandemic environment. The African Virtual Trade-Diplomacy Platform was implemented this year to allow parties across different timelines, languages and legal frameworks to meet in a secure online environment, streamlining cross border negotiations. Digitization is also aiding lenders with assessing risk more accurately through access to previously unavailable data, before they deploy capital in the region. This is allowing projects that would otherwise seem too risky to go ahead.
African Development Bank President calls for development revitalization (AfDB)
African Development Bank President Dr Akinwumi A. Adesina has called on the developed countries of the world to honor their financial commitments to developing countries as developing nations struggle to battle against climate change and the impact of the Covid-19 pandemic. He said Covid had drawn millions, particularly in Africa, into poverty. Dr Adesina was speaking on Thursday at a panel at the fourth edition of the Paris Peace Forum, an event organized and championed by French President Emmanuel Macron to bring together global governance actors in an international and open space to interact, discuss and generate concrete solutions to challenges. The theme of this year’s forum is “Bridging the solidarity gap.” Highlighting Africa’s financial needs amidst global inequity, Adesina said: “We are only looking for 485 billion dollars in the next three years to emerge from the current crisis. Meanwhile, the developed world has trillions of dollars. While the developed world is getting second and third Covid-19 booster shots, Africa is struggling to get one basic shot in people’s arms.” He underscored the importance of the International Monetary Fund’s $650 billion of special drawing rights (SDRs), which he said offered developing countries, and African nations in particular, additional resources as they cope with challenges of building back their economies from the Covid-19 pandemic.
A continental effort to alleviate Africa’s food crisis through modern agriculture (Engineering News)
Covid-19, preceded by climate change, has led to severe and widespread increases in global food insecurity, with recent estimates by UNCTAD suggesting that 73 million people suffer from chronic and acute hunger. African regions, predominantly the Sahel and southern Africa, are particularly vulnerable, with poverty and food insecurity expected to rise in the wake of a regional slump in food production. While this paints a rather gloomy picture, there’s a bright glimmer on the agricultural horizon.
Over 10,000 East Africans call for regional action to ban unnecessary single-use plastics (The Star, Kenya)
The world has been watching as global leaders convened at COP26 this week, with people demanding action over words as the stark reality of the climate crisis threatens the future and existence of the planet. Protecting the world’s vast ocean and its precious biodiversity from the harmful impacts of climate change and human activity sits high on the agenda. That means taking radical action to save the ocean including defeating plastic pollution. Each year, more than eight million metric tonnes of plastic end up in oceans, wreaking havoc on marine wildlife, fisheries and tourism. Half of all the plastic produced globally is designed to be used once and thrown away (“single-use plastic”), and every year, we throw away 300 million tonnes according to the United Nations; nearly equivalent to the weight of the entire human population. East Africa has for some time been a leading voice for protecting the environment.
AKADEMIYA2063 to Host the 2021 ReSAKSS Annual Conference (Africanews)
Today, AKADEMIYA2063 will kick off the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) Annual Conference to promote review and dialogue on the impacts of the COVID-19 pandemic on African food systems and policy options to ensure recovery and strengthen resilience to future shocks. Organized in partnership with the African Union Commission (AUC), under the theme “Building resilient African food systems after COVID-19,” the three-day (15-17 November) virtual conference will equally unveil the ReSAKSS 2021 Annual Trends and Outlook Report (ATOR).
“The COVID-19 pandemic has posed unprecedented challenges to health, economic and agrifood systems around the globe, causing severe disruptions to African economies and food systems; it has interrupted the longest period of sustained economic growth in the continent’s history,” said Dr. Ousmane Badiane, AKADEMIYA2063 Executive Chair. “Building resilient African food systems is one of the seven commitments of the 2014 Malabo Declaration. It calls for a broad perspective on food systems resilience that takes into account implications for and actions by all food systems actors. The 2021 Annual Trends and Outlook Report (ATOR) presents a body of research-based evidence to facilitate understanding of the pandemic’s effects and support the design of post-COVID-19 recovery measures that strengthen the resilience of African food systems,” he said.
N$170m climate-change windfall for SADC - The Namibian (The Namibian)
THE National Assembly (NA) last week approved a regional treaty on climate change which will see Namibia benefit from a N$170 million climate-change resilience fund sponsored by the German government. The treaty, called the Southern Africa Science Service Centre for Climate Change and Adaptive Land Management (Sasscal) seeks to establish a science centre on climate change and adaptive land management in Windhoek. The centre is aimed at strengthening scientific capacity within the southern African region in the areas of agriculture, biodiversity, climate change, forestry, water, and green hydrogen. Namibia, Germany and four other Southern African Development Community (SADC) countries, namely Angola, Botswana, South Africa, and Zambia, are signatories to the treaty.
How the Biden administration can make AGOA more effective (Brookings Institution)
The African Growth and Opportunity Act (AGOA) has served as the cornerstone of the U.S.-Africa commercial relationship for more than two decades but it is set to expire on September 30, 2025. While the legislation’s unilateral trade preferences have provided economic benefits for countries across sub-Saharan Africa, AGOA as a whole remains underutilized. To ensure continuity in U.S-African trade ties, the United States must grapple with the legislation’s potential reauthorization now, with a particular focus on how the utilization of AGOA might be improved. Just a renewal of AGOA won’t be enough to achieve this ambitious vision, however. Instead, the Biden administration should double down on its partnership with AGOA beneficiaries and ensure that each country makes greater use of the program, including through National AGOA Strategies, in a manner that promotes regional and continental value chains.
Africa’s ‘Green Wall’ also makes economic sense (Science Daily)
“In our analysis, we work with different scenarios, some of which are aimed more at short-term benefits, while others are more long-term,” explains the agricultural economist, who is a member of the Transdisciplinary Research Area “Sustainable Futures” at the University of Bonn. The results show that building the “Green Wall” is also economically worthwhile.
International
New publication examines global value chain resilience, shift beyond manufacturing sector (WTO)
Early evidence emerging from the ongoing pandemic indicates that GVCs have played a key role in supporting economic recovery and are evolving in important ways, according to the “Global Value Chain Development Report 2021: Beyond Production,” co-published by the WTO, the ADB, the Research Institute for Global Value Chains at the University of International Business and Economics, the Institute of Developing Economies, and the China Development Research Foundation. There has been no generalized reshoring of production in response to the pandemic, the report states, and GVCs have shown resilience, after initial disruptions, in addressing the needs for food and essential medical goods.
Goods Barometer points to slowing trade growth due to disruptions in critical sectors (WTO)
The Goods Trade Barometer is a composite leading indicator providing real-time information on the trajectory of merchandise trade relative to recent trends ahead of conventional trade volume statistics. The latest barometer reading of 99.5 is close to the baseline value of 100 for the index, indicating growth in line with recent trends. The return to trend follows the record reading of 110.4 in the previous barometer issued in August, which reflected both the strength of the trade recovery and the depth of the pandemic-induced shock last year. Recent supply shocks, including port gridlock arising from surging import demand in the first half of the year and disrupted production of widely traded goods such as automobiles and semiconductors, have contributed to the barometer’s decline.
U.S. Trade Representative Responds to Letters from Senators Regarding TRIPS Waiver (JD Supra)
Last week, United States Trade Representative Katherine C. Tai responded to a series of letters sent by a group of Sixteen Senators regarding a proposal by India and South Africa to waive certain provisions of the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) in relation to prevention, containment, or treatment of COVID-19.
The waiver, which is not limited to vaccines, will do nothing to end this global pandemic. Instead, it will undermine the extraordinary global response that has achieved historically remarkable results in record time and our nation’s global leadership in the technologies, medicines, and treatments of the future.
Report defiant foreign fishing vessels to WTO for subsidy cut – ENRRI–EfD to gov’t (The Business & Financial Times)
Ghana and other developing countries must petition the World Trade Organization (WTO) to push developed countries to withdraw subsidies on foreign industrial fishing vessels to stop them from overexploiting the fish resources of developing countries, Director of Environment and Natural Resource Research Initiative (ENRRI EfD Ghana), Dr. Wisdom Akpalu has entreated.
ENRRI–EfD, also called on government to as a matter of urgency, report to the WTO, all foreign vessels who are legally operating in the country but are however, taking part in Illegal, Unreported and Unregulated (IUU) fishing activities in the country’s waters.
LDCs to demand continuation of fisheries subsidies (The Daily Star)
Bangladesh has joined other least-developed countries (LDCs) to demand the continuation of partial fisheries subsidies as nations are set to agree to new rules for the industry and limit state support contributing to unsustainable fishing and the depletion of global fish stocks. Talks on the fisheries subsidies at the World Trade Organisation (WTO) have remained stalled since 2001 for the overfishing and overcapacity by a number of countries. Fisheries subsidies need to be continued for the LDCs at least for capacity-building, technology upgrade, purchase of ships, training, and developing human resources, as the fisheries sector has become a major source of jobs and economic development, said Hafizur Rahman, director-general of the WTO Cell under the commerce ministry.
Services: The new staple of 21st century development? (Trade for Development News)
Manufacturing industries, and manufacturing-led development, has been the traditional model for development for the last three decades. Development theory has long held that manufacturing is an engine for economic growth. However, a new study posits that manufacturing may no longer be the most efficient pathway to development. Developing and least developed countries (LDCs) often aim for export-oriented industrialization, relying heavily on manufacturing. However, the COVID-19 crisis recently demonstrated the limitations of this kind of development. The garment industry, for example, is a common starter industry for LDCs, and countries like Bangladesh have integrated their apparel industries into global value chains. But the pandemic quickly revealed the fragility of these value chains, with garment factories in Bangladesh facing orders cancellations from Western retail companies. As well as the garment sector, the COVID-19 pandemic exposed the susceptibility of the supply chains of many other sectors, including the agri-food industry, putting many workers in vulnerable positions. Could these high-risk value chains be offset by a shift towards another industry?
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National
Traxtion prepares to make use of ‘rare’ private sector rail opportunity (Engineering News)
Private rail freight operator Traxtion sees the national government’s structural reform agenda as a rare opportunity for the private sector to leverage massive investment in train sets to unlock one of the biggest structural impediments to growth in the South African economy, which is train capacity. The company refers to the announcement that South Africa’s rail network will be opened to third-party freight operators in 2022, as reiterated in the Medium Term Budget Policy Statement last week.
DTIC to submit EV policy to Cabinet before the end of the year – Mlota (Engineering News)
The Department of Trade, Industry and Competition (DTIC) should present a refined new-energy vehicle (NEV) policy to Cabinet before the end of the year, says DTIC automotives chief director Mkhululi Mlota. The DTIC in May issued a Draft Green Paper on the Advancement of New-Energy Vehicles in South Africa. NEVs include hybrids, battery electric vehicles and fuel-cell vehicles.
Electric cars gradually drive into Kenyan roads (Business Daily)
A few years ago, Kenyans and most of us knew little about electric vehicles (EVs) that were synonymous with developed nations such as the US, United Kingdom, China, and Germany. The main reason for Kenya’s, and indeed Africa’s, slow adoption of electric vehicles is that the transition requires heavy investments in technology and infrastructure that many developing countries cannot afford. However, things are changing and at a rather fast pace, especially here in Kenya as international EV startups enter the country in troops. And the momentum to adopt electric vehicles will only accelerate as calls for measures to curb pollution in a bid to reverse climate change impacts get louder.
Zim to import 400MW to bridge power deficit (The Herald)
STATE power utility, Zesa Holdings, intends to import up to 400 megawatts from Mozambique and Zambia as part of measures to end a debilitating power crisis, a senior executive said. This comes as Zimbabwe, blighted by long periods of load-shedding, is spending up to US$20 million of scarce forex on power imports every month, Zesa executive chairman Sydney Gata revealed.
The gap between demand and supply is now being minimised through imports, which sees the country part ways with over US$20 million each month, and load shedding, which usually stretches for 12 hours a day.
FOCAC promotes the growth of China-Tanzania cooperation in depth and substance (The Citizen)
On 29th and 30th November this year, the Eighth Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) will be held in Dakar, capital of Senegal. It is another great event for China-Africa solidarity and cooperation. With the theme of “Deepen China-Africa Partnership and Promote Sustainable Development to Build a China-Africa Community with a Shared Future in the New Era”, representatives of China and African countries will get together to have a comprehensive assessment of the implementation of the outcomes of FOCAC Beijing Summit in 2018 and China-Africa solidarity in the fight against the COVID-19 pandemic.
Facing the unexpected COVID-19 pandemic, China and Africa have supported each other to tide over the difficulties, and promoted further development of their cooperation, which bucks the declining international trend of trade and investment, and manifests the great resilience and strong
Poultry Farmers Call for Ban on Maize Export (This Day)
Disturbed by high cost of maize, a major ingredients in the poultry feeds, the Poultry Association of Nigeria (PAN), has called on the federal government to rescue the poultry industry by banning export of maize, in order to make the commodity available for poultry feed millers in Nigeria. The association made the call in Abeokuta, Ogun State, at the 2021 Poultry Show with the theme: “De-Risking the Nigerian Poultry Industry: Stabilising Critical Inputs and Market Prices for Sustainability.”
Chairman of the 2021 Poultry Show, Mr Olalekan Odunsi, stated that poultry farmers are facing lots of socio-economic challenges which is negatively affecting the industry. Odunsi, who lamented that insecurity, high cost of animal feeds and exchange rate had forced some poultry farmers out of business, added that the challenges had cut number of poultry farmers producing eggs, chickens and other products as many of them had closed shop.
NEPC to implement factoring and forfaiting as instruments of financing export and trade in Nigeria (Nairametrics)
The Nigerian Export Promotion Council (NEPC) has announced it will implement factoring and forfaiting as instruments of financing export and trade in Nigeria. It also stated that it would unlock $1 billion financing for Micro, Small and Medium Enterprises (MSMEs) annually. The NEPC boss said factoring was one of the fastest-growing instruments for structured trade finance in the world, as it is mainly used as a finance tool for a business to sell its account receivables to a third party at a discount in exchange for immediate money to finance other activities.
How Digital Economy Can Boost Nigeria’s GDP – NITDA DG (Leadership)
Director-general of the National Information Technology Development Agency (NITDA) Mallam Kashifu Inuwa has said that shared vision and collaboration amongst the Ministry of Communications and Digital Economy, its parastatals and stakeholders produced 17.09 percent contribution of the digital economy sector to Nigeria’s GDP in second quarter of 2021. In a statement issued by the spokesperson of the agency, Hadiza Umar, the DG said in a paper titled: “The Nigerian Digital Architecture: The Journey So Far”, presented at the World Fintech Festival 2021, which was jointly hosted by Nigeria and Singapore that the way forward for Nigeria in attaining vintage position in the global digital economy remains in the country’s resolve to public private partnership initiatives, funding, human capital, advocacy and continuity.
‘AfCFTA is a good tool to end Ghana, Nigeria trade rivalry’ — Igwe Okadigbo (Modern Ghana)
Patience, mutual understanding and humility to learn from each other are keys to not only ending the Ghana-Nigeria traders’ rivalry but also turning it into an opportunity for development and growth, the Ezeudo Ndigbo of Adoteiman kingdom of Accra, Ghana, His Royal Highness Igwe Chuma Raymond Okadigbo, tells this journalist in this interview in Accra.
Formerly, Nigerians used to trade freely in Ghana here; you couldn’t distinguish between Ghanaian and Nigerian; we took everybody as one. But with time, some Nigerians started coming into Ghana without documentation, not even a passport to identify them. Most of them will come on the streets and start messing up, behaving any how. Because of the problems on the streets, some people thought they could do whatever they like. That created problems. Again, in trading, a Nigerian trader can sell something with little profit margin, and turnover quickly. But from my observation, the Ghanaian trader rigidly sticks to whatever price tag he places on a particular good, thereby stalling the rapidity of his turnover. So, part of the problem is jealousy against the Nigerian trader. Whereas, what they need to do is to befriend their Nigerian colleagues and learn some of their trading strategies. For instance, instead of buying something at Ghc10 and trying to sell it at Ghc30, they can learn from the Nigerian trader who buys at Ghc10 and marks up by just Ghc2 or Ghc3 to achieve quick turnover. The latter strategy helps stabilize the economy, and ensures that your shop is always fully stocked. But if you keep on waiting for a Ghc30 profit on a Ghc10 item, that makes your business to stagnate. Essentially, this difference in strategy was what brought on the subsisting traders’ rivalry, as, in a bid to curb it, Ghanaian traders subsequently started doing checks on the Nigerian traders, and in the process found out that some of them didn’t have shops. That discovery became a bargaining chip in the hands of the host traders who then introduced certain conditionalities, like ‘go and marry a Ghanaian wife if you want to trade in our markets’, etc. But such conditions were not practicable as some of the Nigerian traders were already married back home. However, the ECOWAS and the AFCFTA are tackling these issues; one, through the ECOWAS common currency initiative, the Eco; the other, through the African common market initiative; and, soon, there will be a lasting solution to the issue, I believe.
Nigeria, Bulgaria Seek Improved Business Relations (ThisDay)
The federal government and Bulgaria have renewed their commitments to bolster existing trade and investment ties. The Minister of Industry, Trade and Investment, Mr. Niyi Adebayo, said Nigeria is seeking to harness the diverse opportunities in the areas of trade, industry and investment to create jobs and boost economic recovery. The minister, at the unveiling of the Nigeria-Bulgaria Business Exchange Platform, said globally, investment remained a critical tool for poverty reduction and sustainable development.
Trade Ministry, UN development organization sign programme for Inclusive Industrial Development (Voice of Gambia)
The Ministry of Trade, Industry, Regional Integration and Employment (MoTIE) in collaboration with United Nations Industrial Development Organisation Friday, signed The Gambia Country Programme (2021-2025) at a ceremony held at Sir Dawda Kairaba Jawara International Conference Centre, Bijilo. The Country Program is designed to enhance UNIDO’s support to the Government of The Gambia to implement a roadmap towards inclusive and sustainable industrial development as stated in the Lima Declaration. Through its mandate, UNIDO aims to harness the full potential of industry’s contribution to the achievement of sustainable development and lasting prosperity for The Gambia.
Cameroon adds provisions increasing export taxes on raw timber in 2022 draft budget (Business in Cameroon)
In the 2022 draft budget to be reviewed by parliament during the budget session opened on November 11, Cameroon plans to tighten conditions required to export raw timber from the country. According to the presentation made on November 8, by Finance Minister Louis Paul Motazé, the document plans for an increase, from 35% to 50%, of export taxes “to encourage local wood transformation and reduce deforestation. This means that if the provision is validated, starting from January 2022, wood exporters would pay an additional 15% customs duties to send raw timber abroad. On the other hand, wood actors who want to acquire equipment to start transforming or even boost their processing capacities locally will be fully exonerated from tax and duties on the importations of equipment and tools that can not be found on the national territory, the text indicates.
Africa
Address by President Cyril Ramaphosa at the official opening of the 2021 Intra-African Trade Fair (The Presidency, South Africa)
In 2018 the first Intra-African Trade Fair opened in Egypt, in the ancient city of Cairo. Today, it is opening in the southernmost tip of Africa.
This year’s Intra-African Trade Fair is about building bridges. It brings together governments, buyers, investors, entrepreneurs and manufacturers from more than 55 countries to give life to the African Continental Free Trade Area. The countries of Africa are open for business.
Now Africa is taking concrete steps to write its own economic success story. It is opening up new fields of opportunity. One such opportunity is in Africa’s rapid adoption of locally developed fintech, of which M-PESA is the most well-known. It is an example of financial and technological innovation in which Africa leads the world.
It is our expectation that this Intra-African Trade Fair will further cement its position as Africa’s premier trade platform, where African manufacturers can promote and sell more ‘Made in Africa’ goods to one another. This is critical if we are to change the distorted trade relationship that exists between African countries and the rest of the world. We can no longer have a situation where Africa exports raw materials and imports finished goods made with those materials.
By promoting trade between African countries we are strengthening the continent’s industrial base and ensuring that we produce goods for ourselves and each other. Two key developments of global significance can serve as a stimulus for Africa to act in unison. Firstly, the outbreak of the COVID-19 pandemic in the first quarter of 2020 exposed the frailty of African economies.
Secondly, the African Continental Free Trade Area has the potential to accelerate economic growth across the continent and create opportunities for entrepreneurs, small and medium enterprises as well as large corporations to flourish.
‘Africa Trade fair is a powerful expression of SA’s commitment to deepening continental integration,’ says KZN Premier (ANA/Business Report)
KwaZulu-Natal Premier Sihle Zikalala said in a statement on Saturday that the trade fair is a powerful expression of South Africa’s commitment to deepening continental integration and strengthening the African Continental Free Trade Area (AfCFTA). “The previous IATF in Egypt attracted over 1000 exhibitors and 2500 delegates from more than 45 countries. Another significant outcome was that US$32 million in trade and investment deals were concluded in Cairo,” said Zikalala. “As the several thousand IATF delegates and exhibitors gather in Durban, we are confident of the energy, ideas and contract opportunities that will propel the fresh developmental agenda represented by AfCFTA,” said Zikalala.
AfCFTA to aid growth of airlines in Africa, boost tourism (The Guardian, Nigeria)
The Africa Continental Free Trade Agreement (AfCFTA) is positioned to aid the growth of airlines in the continent, boost trade and tourism, stakeholders have said. Air Transport specialist and former Managing Director of the Federal Airports Authority of Nigeria (FAAN), Richard Aisuebeogun said with AfCFTA, it becomes easier for airlines to grow in Africa just like what is obtained in the entire continent of Europe.
He said: “There is virtually no part of Europe that you cannot fly into from one particular spot because you have airlines crisscrossing the entire continent of Europe. We know that is not the case in Africa.
The challenge of flying across Africa is a major challenge. If we find it as a major challenge to fly across Africa or within Africa via intra-Africa transport system, then, you can imagine how it is going to limit the economic development of the region”.
With AfCFTA, African FinTechs See SMB Investment Opportunities (PYMNTS)
FinTech startups in Africa are ballooning beyond their borders to access a wave of new investments expected to arrive with the advent of the African Continental Free Trade Area (AfCFTA). Trading under the AfCFTA began earlier this year, with the aim of establishing the largest single market for goods and services in the world. As Quartz reported Friday (Nov. 12), several startups have — just in the last month — either raised growth funding, hired top players from the telecom industry or purchased another regional player in their vertical.
The report uses the example of Kenya’s Asante Financial Services Group, which helps support micro, small and medium-sized businesses and has raised $7.5 million to help SMBs in Kenya and Uganda access new markets.
Understanding the Pan-African Payment and Settlement System of the AfreximBank - Ade Adefeko (Proshare Nigeria)
On the 28th of September, 2021, the Afreximbank in conjunction with the African Continental Free Trade Area (AfCFTA) secretariat officially made the Pan-African Payment and Settlement System (PAPSS) available to be used by African businesses doing business on the continent. This follows a successful pilot phase in the countries of the West African Monetary Zone (WAMZ - Nigeria, Ghana, Liberia, Sierra Leone, The Gambia, and Guinea (Conakry). The AfCFTA aims to bring together the 54 African countries to trade under a single market with liberalized tariffs and the elimination of the non-tariff barriers to cross-border trading.
However, one of the problems which had hindered intra-African trade for a long time has been the reliance on third currencies- US dollars, Euros, and the British Pounds for the clearing and settlement of cross-border payments and transactions which in turn leads to high costs and long transaction times. At the moment, 42 currencies are being spent on the continent and only a few of these currencies have any value outside the countries where they are legal tender. This situation has persisted due to the weak and volatile nature of these legal tenders.
It is time for the Intra-Africa Trade Show (African Reporter)
Automotive heavyweights from several countries in Africa will congregate in Durban next week at the Automotive Show, forming part of the Intra-Africa Trade Fair at the Durban Exhibition Centre. Africa’s automotive policy and industry decision-makers will meet to discuss how the auto sector can drive industrialisation on the continent.
“The Forum has attracted Heads of State, industry executives and African industrialists around this agenda, but the wider exhibition, match-making and networking opportunities will connect suppliers of raw materials, vehicles, automotive parts and aftermarket services and technology with buyers across Africa,’’ Automotive Show co-ordinator, Andrew Binning, CEO of Inkanyezi Events, said.
E. Africans face bleak Christmas as weak currency, high oil prices stretch budgets (The East African)
Kenyans are bracing for hard times as the country enters the festive season as a weakening shilling, rising crude prices and the implementation of the contentious inflation-linked adjustment on excise duty threaten to push up cost of transport and prices of basic commodities. The Kenya Revenue Authority (KRA) has quietly introduced a 4.97 percent increase in duty for excisable goods effective November 2, setting the stage for an increase in prices of at least 31 products including juices, bottled water, beer chocolate, spirits, cigarettes and motorcycles. The new levy comes into effect despite public protests that prevented its scheduled introduction on October 1. It is expected to adversely impact households and businesses, which are already hurting from the effects of high fuel prices.
Expedite comprehensive review of EAC Common External Tariff, Partner States urged (EAC)
East African Community Partner States have been called upon to expedite the comprehensive review of the EAC Common External Tariff (CET) in order to promote trade and industrialization in the region. Kenya’s Cabinet Secretary for Trade and Industrialization, Ms. Betty Maina, said that the failure to conclude the review of the CET, which started in 2016, was providing leeway to products from other parts of the world to flood the EAC Common Market at the region’s expense.
“We need to prioritize the regional trade and industrialization agenda by working together to conclude the comprehensive review of the CET. At the moment we have a punctured wall that allows products from outside the region to penetrate our market,” said the Cabinet Secretary.
Come January 1st, 2022, ECOWAS Countries would join the World Customs Organisation with a stronger and more harmonised Custom Union, with the Migration from HS2017 to HS2022. This was one of the major outcome from the 6th meeting of ECOWAS Minis-ters of Finance in the city of Accra, 12th November, 2021. The honorable Ministers reviewed and validated the draft text on the various supplementary acts and regulations including the Acts Community levy, Acts on Community transit guarantee mechanism, texts relating to the consolidation of ECOWAS Customs Union, among others, as recommended from the just concluded Directors General of Customs meeting in Accra also. This approved recommendations will be presented at the next council of ministers in December, 2021 for adoption and further implementation in member States.
CEMAC launches Observatory of Abnormal Practices along the main Central African corridors (Business in Cameroon)
On November 11, 2021, the regional Observatory of Abnormal Practices along the main Central African corridors (OPA-AC) was launched in Yaoundé. The OPA-AC was launched in the framework of the Support Program for the Management of Regional and National Infrastructures in Central Africa (the program is funded by the European Union to the tune of XAF3.8 billion), and its installation is entrusted to the Sub-regional Institute for Statistics and Applied Economics (ISSEA) through a service agreement. The observatory will collect and analyze and regularly publish (four national and one workshop annually) transport data, that will help to review abnormal practices happening along the concerned corridors, towards alerting main actors and decision-makers for progressive eradication of those practices.
Building the Knowledge Base to Boost Growth and Jobs in the Lake Chad Region (World Bank)
The Lake Chad region, an economically and socially integrated area in West and Central Africa straddling Cameroon, Chad, Niger and Nigeria, is confronted with an interplay of multidimensional development challenges that have resulted in low economic growth, limited opportunities, and fragility. Boosting growth and job creation in the region requires policies and programs that restore peace and improve the service delivery of basic public services for greater economic opportunities. Yet, a severe lack of data and diagnostics hinders coordinated, evidence-based interventions. A new World Bank study aims at closing critical knowledge gaps to inform the policy discussion on challenges and opportunities for faster, more inclusive, and sustained economic growth in the Lake Chad region. The Lake Chad Regional Economic Memorandum “Development for Peace” provides a detailed account of the interlocked development challenges affecting the Lake Chad region. It finds that poverty rates, economic growth, and other core socio-economic indicators in the region trail behind other areas of the respective countries. This stagnation is perpetuated by the negative feedback loops between “3Ds and 2Cs”: that is, (i) the low density, long distances, and profound social, cultural, and ethnic divisions that characterize the economic geography of the region; and (ii) climate change and conflict that exacerbate such development challenges.
Smart Africa, Afriwave partner to advance connectivity and data capacity (BusinessGhana)
Smart Africa and Afriwave Telecom Ghana Limited have partnered to collaborate in One Africa Network and Interconnect Clearinghouse initiative, Data Centre and Cloud Project and Intra-Africa Connectivity project, to advance digital transformation in Africa.
Smart Africa is an alliance of 32 African countries, international organisations and global private sector players, tasked with defining Africa’s digital agenda. “The alliance is empowered by a bold and innovative commitment by African Heads of State to accelerate sustainable socio-economic development on the continent and usher Africa into the knowledge economy through affordable access to broadband and the use of ICTs,” the statement said.
Is energy transition the answer to Africa’s Socio-Economic Development? (Modern Diplomacy)
Europe’s energy transition is under scrutiny following the region’s soaring electricity prices and the scarcity of fossil fuels. The inadequacy of renewable energies to efficiently respond to these problems has become apparent. Is it necessary to increase the commitment to renewable energies and accelerate the transition? Must Europe re-think the market for emission rights (responsible for 70% of the increase in electricity prices in Spain, according to the Bank of Spain)? Does Europe need to take a step back and stockpile fossil fuels to avoid a future energy crisis?
Department for International Trade to hold virtual Africa Investment Conference (GOV.UK)
The Department for International Trade is today, 15th November, announcing that it will host a second edition of the Africa Investment Conference on 20 January 2022. The conference will mark two years from the UK-Africa Investment Summit hosted in London by Prime Minister Boris Johnson, where 27 trade and investment deals worth £6.5bn and further commitments worth £8.9bn were announced.
UK Minister for Investment Lord Gerry Grimstone said: The 2020 UK-Africa Investment Summit secured partnerships and investment commitments worth over £15 billion, leading to long term economic growth and jobs for both our regions. The upcoming African Investment Conference will provide the perfect opportunity to build on this success by bringing UK-Africa investment opportunities, from clean growth to financial services, to the fore within our business communities.
Vicky Ford MP, Minister for Africa, said: Strengthening our connections with emerging markets across Africa is a priority for the UK.
COP 26 conclusion: updates
COP26 Reaches Consensus on Key Actions to Address Climate Change (UN Climate Change)
Deliberations under the current session of the COP, CMP and CMA came to an end this Saturday in Glasgow, one day after their scheduled conclusion. The wide-ranging set of decisions, resolutions and statements that constitute the outcome of COP26 is the fruit of intense negotiations over the past two weeks, strenuous formal and informal work over many months, and constant engagement both in-person and virtually for nearly two years. The package adopted today [13 November] is a global compromise that reflects a delicate balance between the interests and aspirations of nearly the 200 Parties to the core instruments on the international regime that governs global efforts against climate change.
CoP26: A ‘net nothing’ summit that the UN termed a global compromise (Down to Earth Magazine)
The 26th Conference of Parties (CoP26) to the United Nations Framework Convention on Climate Change (UNFCCC) at Glasgow came to an end late evening November 13, 2021
The end came more than 24 hours after the scheduled completion deadline, with a deal that the United Nations termed ‘a global compromise’. Countries like India and China got the fruit of this compromise when under pressure from them, the phrase ‘phase out’ of coal, used in the earlier text, was changed to ‘phase down’ in the final agreement. This effectively means that their coal-based power programmes will continue, albeit in a low key manner over the future.
Sunita Narain, director-general of New Delhi-based non-profit Centre for Science and Environment, pointed out that the much-vaunted summit had either failed, or could not progress beyond earlier status, regarding the most contentious points, be it climate justice or the question of coal. “Has the Glasgow Climate Pact succeeded in going far enough to keep the world below a 1.5 degrees Celsius temperature rise … the answer is a resounding ‘no’,” said Narain. Several high carbon emitter countries have only settled for long-term ‘Net Zero’ targets in the face of several scientific studies. These clearly point out that the next two decades would be crucial in the context of temperature rise and climate change whose impacts are to become more frequent and forceful. “CoP26 has betrayed the poorest of the poor and the most vulnerable in south Asia,” Sanjay Vashisht, director of Climate Action Network South Asia, said. He criticised how developed countries continued to talk without real money on the table.
No breakthrough in Glasgow: Developed countries do not take responsibility for damage done (Care International)
The 26th UN Climate Change Conference of Parties has drawn to a close with a decision that has left vulnerable countries most impacted by climate change frustrated and disappointed, according to CARE International.
“We had hoped for a real plan, but instead developed countries only agreed to a vague two-year dialogue on arrangements for loss and damage funding without a clear outcome in sight,” said Chikondi Chabvuta, Southern Africa Advocacy Lead with CARE International.
CARE is concerned that forward-looking pledges and plans rely on immediate implementation, while lengthy dialogues don’t recognize the urgency for the poorest who did the least to cause this crisis but are suffering the most.
“Before the next COP, rich countries must meet their commitments on climate finance, which must be new and additional, scale up adaptation to 50% and mobilize resources for Loss and Damage. Across all these areas, gender equality and women’s leadership must be integrated and prioritized.”
Cooling community announces steps to beat global warming with GBP 12 million boost from UK (UNEP)
Climate action can deliver a sustainable future for all: UN deputy chief (UN News)
Pay Africa for carbon offsets to save the planet and support livelihoods, leaders say (The East African)
Kenya’s President Uhuru Kenyatta wants businesses and corporations in the global North to take advantage of the unique ecological opportunity offered by Africa as a natural carbon sink and compensate the continent. Mr Kenyatta explained to investors at a side event at the ongoing COP26 climate conference in Glasgow, Scotland, that the process can transform conservation finance in Africa by compensating the continent for storing carbon and tackling climate change. He noted that the global net zero emissions demand can unlock value for Africa’s people by offering businesses an opportunity to appeal to consumers keen on making more environmentally conscious purchases.
International
How COVID-19 is undermining international trade law (East Asia Forum)
The COVID-19 pandemic will have a lasting effect on many areas of international lawmaking. In recent years, members of the World Trade Organization (WTO) have struggled to progress the trade agenda or even keep the multilateral system functioning as designed. The pandemic may accelerate the trend of increased protectionism and movement away from liberalism and towards managed trade.
At the domestic level, the pandemic will likely result in legislation from the most important trading nations that attempts to domesticate production. Sometimes the language used is more obscure — such as the US emphasis on ‘supply chain resilience’ — but the practical effect is the same.
The pandemic could make governments less likely to engage in international lawmaking as uncertainty leads to stronger notions of sovereignty and an accompanying hesitance by governments to further liberalise trade. Trade can be a force for good during pandemics and such hesitation threatens economic recovery and growth.Before COVID-19, there was already a trend towards increased protectionism and managed trade, with prominent examples being the failure of the WTO’s Doha Round of trade negotiations and US President Donald Trump’s approach to counter China’s rise.The uncertainty brought about by COVID-19 has led to even less trust in the global system and calls for increased ‘homegrown’ reliance. It has not helped that several countries have initiated a host of trade-restrictive measures, including actual or de facto export bans on PPE and vaccines.
While the crisis should lead to increased liberalisation to avoid supply issues, there is no indication this will be the case.
LDC members exchange views, experiences on impact of graduation (WTO)
LDC graduation refers to the point when an LDC meets certain United Nations development criteria and is no longer defined an LDC. LDCs are accorded special treatment in the WTO, in particular with regard to enhanced market access opportunities and policy flexibilities. While graduating from the LDC category is a major development achievement, this process comes with challenges, the discussants noted.
DG Okonjo-Iweala noted that the WTO’s upcoming 12th Ministerial Conference (MC12) will be an occasion for the WTO membership to address the opportunities and challenges of LDC graduation.
“Development issues should be at the heart of work at the WTO”— DG Okonjo-Iweala (WTO)
DG Okonjo-Iweala stressed that the work of the WTO is important for developing and least developed countries (LDCs), hence, it is critical for the WTO to deliver on issues of importance to them. Trade is a significant driver for economic growth and poverty reduction and ultimately for development, she added.
DG Okonjo-Iweala also noted that the ongoing review of duty-free and quota-free market access for LDCs, the implementation of the Aid for Trade work programme, work to enhance transparency in regional trade agreements and preferential trade arrangements are also vital areas of the CTD’s work that need to be paid attention to.
For Local Fishers to Compete, African Leaders Must Urge WTO Members to End Harmful Subsidies (allAfrica)
Mauritania’s waters are rich in biodiversity: More than 600 fish species live in the northwest African nation’s territorial waters. The fishing industry provides jobs for 180,400 people and accounts for up to 10% of the country’s gross domestic product, according to the United Nations’ Food and Agriculture Organization. But that wealth of marine resources is also the reason that fishing fleets from foreign nations flock to Mauritania’s coast.
Researchers from the University of British Columbia estimate that governments worldwide give out $22 billion in harmful fisheries subsidies every year, nearly two-thirds of which comes from six countries and the European Union. About $7.2 billion of the global total—or one-third—goes toward distant-water fishing, according to UCSB’s tool. Mauritania’s EEZ is the fifth-largest target of subsidized distant-water fishing in the world. It’s a challenge shared by other African countries, which are losing out to aggressive foreign fleets from big fishing nations, primarily in Europe and Asia, that have depleted fish populations in their own waters and come to Africa to fill their nets—often hunting for fish not only within African EEZs but in the areas just outside them, known as the high seas.
WTO members’ trade ministers could strike the deal when they gather in Geneva for a ministerial conference Nov. 30 through Dec. 3. In these last weeks leading up to the conference, Africa’s leaders should urge their counterparts around the world to support an ambitious treaty that would eliminate the distant-water fishing subsidies that make it hard for their domestic fishers to compete with foreign fleets.
Fishery subsidy: India to seek fairer deal at WTO (The Financial Express)
India and many other developing countries are pushing for changes to the latest draft negotiating text on fishery subsidies at the World Trade Organization (WTO) as they apprehend that their interests are being shortchanged while advanced fishing nations — primarily responsible for the fast-depletion of the world’s fish stocks — get to continue with their elevated levels of sops. Given that a consensus on the ways to curb fishery subsidy remains elusive just days before the ministerial starts on November 30, an agreement at the meeting of the trade ministers seems unlikely unless key groups settle on a middle path. The new text, sources said, seems to suggest that those who demonstrate certain convoluted standards of conservational management can continue to extend subsidy for distant water fishing and those who fail to do so can’t offer it.
Kenya is Africa’s finest in Intellectual Property (Business Daily)
Global economies are reeling from the harsh realities occasioned by the stochastic spread of the coronavirus disease of 2019 and its attendant variants. Combined with intensified adverse weather episodes and vaccine inequality in the global south, life has been tough for many. Companies were impelled to shut down or downsize to remain afloat but the intervention was not without dire effects on employees, especially those in the informal sector. It is within this hopeless state that ingenuity and invention proved critical, according to the World Intellectual Property Indicators (WIPI) report. The report succinctly establishes China as a leading hub in a range of intellectual property concentrations.
Related News
COP26 Reaches Consensus on Key Actions to Address Climate Change
Deliberations under the current session of the COP, CMP and CMA came to an end this Saturday in Glasgow, one day after their scheduled conclusion. The wide-ranging set of decisions, resolutions and statements that constitute the outcome of COP26 is the fruit of intense negotiations over the past two weeks, strenuous formal and informal work over many months, and constant engagement both in-person and virtually for nearly two years. The package adopted today [13 November] is a global compromise that reflects a delicate balance between the interests and aspirations of nearly the 200 Parties to the core instruments on the international regime that governs global efforts against climate change.
Under the UK presidency and with the support of the UNFCCC Secretariat, delegates forged agreements that strengthen ambition in the three pillars of collective climate action.
Adaptation was the object of particular emphasis during the deliberations. Parties established a work programme to define the global goal on adaptation, which will identify collective needs and solutions to the climate crisis already affecting many countries. The Santiago Network was further strengthened by elaborating its functions in support of countries to address and manage loss and damage. And the CMA approved the two registries for NDCs and Adaptation Communications, which serve as channels for information flowing towards the Global Stocktake that is to take place every five years starting in 2023.
Finance was extensively discussed throughout the session and there was consensus in the need to continue increasing support to developing countries. The call to at least double finance for adaptation was welcomed by the Parties. The duty to fulfill the pledge of providing 100 billion dollars annually from developed to developing countries was also reaffirmed. And a process to define the new global goal on finance was launched.
On mitigation, the persistent gap in emissions has been clearly identified and Parties collectively agreed to work to reduce that gap and to ensure that the world continues to advance during the present decade, so that the rise in the average temperature is limited to 1.5 degrees. Parties are encouraged to strengthen their emissions reductions and to align their national climate action pledges with the pdf Paris Agreement (4.34 MB) .
In addition, a key outcome is the conclusion of the so-called Paris rulebook. An agreement was reached on the fundamental norms related to Article 6 on carbon markets, which will make the Paris Agreement fully operational. This will give certainty and predictability to both market and non-market approaches in support of mitigation as well as adaptation. And the negotiations on the Enhanced Transparency Framework were also concluded, providing for agreed tables and formats to account and report for targets and emissions.
Patricia Espinosa, Executive Secretary of UN Climate Change said: “I thank the Presidency and all Ministers for their tireless efforts throughout the conference and I congratulate all Parties on finalizing the rulebook. This is an excellent achievement! It means that the Paris Agreement can now function fully for the benefit of all, now and in the future.”
Alok Sharma, UK President of COP26 said: “We can now say with credibility that we have kept 1.5 degrees alive. But, its pulse is weak and it will only survive if we keep our promises and translate commitments into rapid action. I am grateful to the UNFCCC for working with us to deliver a successful COP26.”
The Heads of State and Government and the delegates who participated in COP26 brought to the conference a keen awareness of the severity of the climate crisis that the world faces and of the need to live up to the historic responsibility of setting the world on the path to address this existential challenge. They leave Glasgow with clarity on the work that needs to be done, more robust and effective instruments to achieve it, and a heightened commitment to promote climate action – and to do so more quickly – in every area.
Outcomes from COP26 are available here.
About the UNFCCC
With 197 Parties, the United Nations Framework Convention on Climate Change (UNFCCC) has near universal membership and is the parent treaty of the 2015 Paris Climate Change Agreement. The main aim of the Paris Agreement is to keep a global average temperature rise this century well below 2 Celsius and to drive efforts to limit the temperature increase even further to 1.5 degrees Celsius above pre-industrial levels. The UNFCCC is also the parent treaty of the 1997 Kyoto Protocol. The ultimate objective of all agreements under the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous human interference with the climate system, in a time frame which allows ecosystems to adapt naturally and enables sustainable development.