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Economists satisfied with MTBPS but still concerned over SA’s growth, debt (Eyewitness News)
While economists have welcomed the revenue windfall which has been used to fund many of the adjustments in the medium-term budget, growth and debt still remain the main concerns. Finance Minister Enoch Godongwana delivered his Medium-term Budget Policy Statement (MTBPS) on Thursday, forecasting growth of 5.1% for this year.He announced a gross tax revenue of R120 billion more due to an uptick in commodity prices and revenue from mines.
Industry calls for railway rehab (The Herald)
Industry players have challenged government to prioritise resuscitation of the country’s dilapidated railway network — one of the key economic enablers — if the country is to realise meaningful industrialisation and export business. Despite being at the heart of the North-South corridor, a dilapidated railway network in the country has lately prompted transporters of merchandise to resort to move their goods by road, to the detriment of roads whose life span is being shortened due to heavy cargo. Good road and rail networks are vital for efficient transportation of manufactured goods, as the former is the cheapest mode of cargo transportation that enhances competiveness of local produce at the export markets.
Kenya’s mega-railway project leaves society more unequal than before (The Conversation)
In 2014, Kenya started to construct a new railway to connect the Mombasa Port with the interior and on to landlocked Uganda and Rwanda. Today the Standard Gauge Railway stops abruptly at Naivasha, 120km northwest of Nairobi. Ultimately it is planned to reach the border with Uganda at Malaba, helping to connect East Africa’s regional transport and trade. Costing US$3.8 billion, 90% of which has been provided by a bilateral loan from the Exim Bank of China to the Government of Kenya, this new passenger and freight railway is the biggest infrastructure project in the history of independent Kenya. Alongside other large projects such as the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) Corridor, the Standard Gauge Railway is central to Kenya’s current national development policy, “Vision 2030”. The policy frames these mega-projects as key in attracting the sort of private sector interest needed to fuel economic growth, increase exports and alleviate poverty.
The reality, however, is far more complicated than such official narratives acknowledge.
Zimbabwe seeks to increase mining revenue | Africanews (Africanews)
Mining accounts for 12% of Zimbabwe’s Gross Domestic Product. Among the wide range of minerals, gold stands out. Large miners produce up to one ton of gold per month, with smaller producers churning out 1.9 tons. To accelerate the recovery of the sector after the pandemic, authorities are seeking $8 billion to reopen closed mines.
Zim, Mozambique push for one-stop border posts (The Herald)
Zimbabwe and Mozambique are pushing for the implementation of agreed projects including the setting up of a pair of one-stop border posts at Forbes-Machipanda and Nyamapanda-Cuchamano and the construction of a second pipeline from Beira to Mutare and Harare. The 12th session of the Joint Permanent Commission on cooperation between Zimbabwe and Mozambique hosted by Zimbabwe yesterday is now seeking action to convert agreements into changes on the ground.
Mitumba imports up 80pc on weak shilling, end of ban (Business Daily)
The value of second-hand clothes imports grew 80 percent in the first half of the year as State lifted a ban in the second quarter.Data from the Kenya National Bureau of Statistics (KNBS) indicates that the value of these clothes, popularly known as mitumba, went up to Sh9.2 billion in the review period from Sh5.1 billion in corresponding time last year.Kenya Bureau of Standards had in late March last year suspended the importation of used clothing after the country reported its first case of Covid-19.This precautionary measure was meant to safeguard handlers and users of used textiles and shoes from any risk of exposure to coronavirus as the world grappled with the fast-spreading pandemic.However, the standards body lifted the ban in August last year, giving hope to millions of Kenyans who rely on second-hand clothes.
Munya puts sugar cartels on notice in reforms push (Business Daily)
The government has vowed to eradicate cartels exploiting sugarcane farmers.Agriculture Cabinet Secretary Peter Munya termed as unfortunate that unscrupulous businessmen are making huge profits at the expense of farmers who toil to produce the key raw material for the manufacturing of the sweetener.”We cannot allow the situation where a farmer who has used his energy and resources to farm and develop the cash crop ends up with nothing,” he said.Mr Munya pointed out they will continue to implement President Uhuru Kenyatta’s directive and clean up the once-lucrative sector which has been riddled with a myriad of challenges.”The government will do everything in its capacity to restore the confidence of farmers who had abandoned the cash crop and restore the profitability of the sector,” he said.
US top diplomat Antony Blinken to visit Kenya, Nigeria and Senegal (The East African)
US Secretary of State Antony Blinken travels to Kenya, Nigeria and Senegal next week, where he will discuss ending the Covid-19 pandemic and battling climate change, his spokesman said Thursday. Blinken will meet with the president of each country to “advance US-Africa collaboration on shared global priorities,” state department spokesman Ned Price said in a statement. Other topics of conversation on the agenda for the Monday to Saturday trip include revitalizing democracies, advancing peace and security, and a more inclusive global economy, Price said.
Tanzania leads East Africa in drawing American investments (The Citizen)
Tanzania leads the other East African Community (EAC) partner states in attracting investments from the United States, the world’s largest economy.
According to EABC - an apex body of private sector associations in the region - total foreign direct investments from the US to Tanzania was $1.5 billion in 2019. Tanzania is followed by Kenya - which received $353 million in the same year - followed by Uganda $42 million, Rwanda ($11 million) and Burundi which managed to attract $1 million in the same year (2019).
The agreement, signed on Wednesday, outlines several areas of collaboration, including showcasing trade and investment opportunities in the EAC bloc. These include industrial exchange programmes and trade missions to the USA, joint exhibitions and conferences, training programmes and certifications.
Dar port impresses Ugandan traders (The Citizen)
Uganda transporters and traders have expressed their satisfaction with the services provided by Tanzania in transportation of cargoes via Dar es Salaam port. This was revealed recently when Tanzania Ports Authority (TPA) director general Eric Hamissi led a delegation of officials from his office, the Tanzania Shipping Agency Corporation (Tasac), the Tanzania Railway Corporation (TRC) and members of the private sector in a visit to Uganda. The visit, among other things, aimed at ensuring that goods destined for Uganda passing via the Dar es Salaam Port were handled and transported smoothly.
“This is good for development of trade in the East African Community (EAC) and the region in general,” said representative of the Roofings Group, Mr Stewart Mwesigwa.
AGI warns of possible collapse of local industries if 50% Benchmark policy is not reviewed (Myjoyonline)
The Association of Ghana Industries is warning of a possible collapse of local manufacturing industries if government does not review the 50% Benchmark Policy on imported products, the Vice President in charge of SMEs, Humphrey Anim-Dake has said. Ahead of the 2022 budget, the AGI has urged government to exempt sectors such as agribusiness, pharmaceutical and heavy industry from the policy. It has already sent the proposal to the Finance Ministry. “Instead of the universal application of the policy to all imports, AGI believes imports which come to compete with locally manufactured products be exempted from the policy. It is important for government to cushion local products for which there is local production capacity. Secondly, we urge government to maintain the benchmark policy for manufacturers that import raw materials to help grow the real economy”, Mr. Anim-Dake pointed out.
Nigeria’s digital currency: what the eNaira is for and why it’s not perfect (The Conversation)
Nigeria recently became the first African country to introduce a digital currency. It joins the Bahamas and the Eastern Caribbean Central Bank in being among the first jurisdictions in the world to roll out national digital currencies.
A digital currency is a means of payment or money that exists in a purely electronic form. Central bank digital currencies are issued and regulated by the nation’s monetary authority, or central bank, and backed by the government. They are different from existing electronic central bank money, which is provided by central banks but can only be used by banks and selected financial institutions. When financial institutions pay each other, they pay in reserves from accounts held with a central bank. Before central bank digital currencies, the only way consumers could use money that is a direct liability of a central bank was with physical cash. Existing digital retail payment from customer deposits accounts in banks are based on money that is the liability of the institution providing the account, not a central bank. A central bank digital currency is a direct liability on the central bank and is available to all households and businesses giving them access to electronic central bank money.
Liberian Women Entrepreneurs Prepare for the African Market - FrontPageAfrica (FrontPageAfrica)
The Government of Liberia, with support from UNDP and UNWOMEN, will undertake a series of consultations with Liberian women entrepreneurs involved in cross-border trade to sensitize them about the African Continental Free Trade Area (AfCFTA) agreement, which became operational in January 2021. The consultations will highlight the opportunities presented by the continental free trade area as well as provide a forum for women traders to identify and find solutions to the challenges they encounter when trading across borders. “The African Continental Free Trade Area agreement presents an immense opportunity for Liberia’s growth and prosperity by making it easier for entrepreneurs and businesses to move seamlessly from one country to another to buy and sell their goods and services without unnecessary tariff and non-tariff barriers. However, to accomplish this goal, the operationalization of the agreement must be fair and inclusive by engaging and listening to women traders who account for about 70% of the trade that happens across African borders,” said Stephen Rodriques, UNDP’s Resident Representative in Liberia.
Ghana/Japan forge stronger economic ties - Graphic Online (Graphic Online)
In a bid to strengthen business exchanges between Ghana and Japan, the Japan External Trade Organisation (JETRO) has officially opened its office in Ghana. The JETRO Office in Ghana is expected to focus on three main pillars of activities which include; trade and investment promotion, exhibitions and business delegation in Ghana and Japan; and research and policy proposals.
President of Comoros attends business forum on investment in his country at Expo 2020 Dubai (ZAWYA
Azali Assoumani, President of the Comoros, attended the business forum on investment in his country, held at the Business Centre at Expo 2020 Dubai.Several Emirati and international officials and investors also attended the event.In his speech, President Assoumani called on the audience to invest and forge partnerships in his country and engage in exchanging innovative ideas and expertise. He also encouraged them to cooperate with his country’s private sector to develop small and medium-sized enterprises (SME).The Comoros is still a country with unrealised potential, he added, noting there are numerous opportunities for investing in various sectors, including agriculture, fisheries, tourism, energy, transport, social services, renewable energy and the green economy.
Africa
Intra-African Trade Fair 2021 poised to boost commerce across Africa (Afreximbank)
The Intra-African Trade Fair (IATF2021) will see Durban host key figures from the world of trade, including entrepreneurs, financiers, governments and regulators, on one platform to deliberate on trade acceleration and investment throughout the African continent. Organised by the African Export-Import Bank (Afreximbank) in collaboration with the African Union (AU) and the African Continental Free Trade Area (AfCFTA) Secretariat, IATF2021 is being held at Durban International Convention Centre, KwaZulu-Natal, South Africa, from 15 to 21 November 2021. IATF2021 is expected to attract over 10,000 attendees from across Africa with US$40 billion of trade and investment deals set to be concluded at the event, meaning the conference offers unrivalled business and commercial networking opportunities and will boost intra-African trade and investment.
Tourism, transportation summits on AfCFTA, boost for post COVID-19 recovery (Blueprint Newspapers)
The tourism and transportation industries worldwide have been most affected by the Corona Virus (COVID-19) pandemic that has ravaged the world for close to two years now. The pandemic forced every country to shut her borders against visitors in a manner never seen before. Travel and tourism businesses shrunk by about 80 per cent leading to the collapse of tourism business and other ancillary services that depend on movement of people to survive. The loss suffered by the global tourism industry is put in the region of $4 trillion.
There is a unanimity, however, among African experts in the tourism and transportation industry that the recently signed African Continental Free Trade Area AfCFTA), an initiative of the African Union (AU), will play a key role in the process. It is in the light of this that the 2021 edition of the National Tourism and Transport Summit (NTTS) holding in Abuja from the 15 to the 16th of November will focus on the theme: Leveraging the African Continental Free Trade Area (AfCFTA) Initiative.
The African Export-Import Bank (Afreximbank), and the International Islamic Trade Finance Corporation (ITFC), in partnership with the Arab Bank for Economic Development in Africa (BADEA) and the African Organization for Harmonization (ARSO) announce the organization of a roundtable on the sidelines of the Intra-African Trade Fair (IATF) on 17th November 2021 at 10:30 – 12.30pm (South Africa Time). The hybrid event will serve as a platform to provide update on their common project called “Harmonisation of Standards for Pharmaceutical Products and Medical Devices in Africa”. The initiative which was launched under the umbrella of the Arab Africa Trade Bridges (AATB) Program in 2020, aims at harmonising African standards for pharmaceuticals and medical devices thereby enhancing intra-African trade and investment, reducing substandard counterfeit products, and building resilient regional health systems.
Connecting Africa Through Sealink Project (Leadership)
There is presently an undue exploitation of African businesses by international shipping companies. From West zone through North to South and Easter Africa, the continent is being browbeaten in the crucial but relegated maritime transport business. Prior to outbreak of COVID-19 that has impacted Africa negatively, movement of goods through the waters has been very difficult; most times the delays lead to retention charges set by shipping lines. A review of Africa’s maritime transport by the UNCTAD estimates that the drop in Africa’s exports is at -35% and the drop in imports at -25%. The situation was worse in 2020. By late June 2020, the drop in the number of ships call in Sub-Saharan Africa stood at -9.7% while the drop in container ship calls stood at -12.7%, according to the review. The impact on bulk shipping was less pronounced. Port calls by dry bulk carriers declined by 7.7% while calls by wet bulk carriers was less affected, falling by 1.4 % only.
Chairperson of the Sealink implementation committee, Mr Dabney Shall-Holma said the Sealink project was conceived to ensure the integration of the west and central African sub region by trade which is trade integration but also to stretch it across the continent of Africa and ensure the improvement in the intra-African trade statistics. The aim is to remove the huge logistics challenges and non-tariff measures along the ECOWAS trade corridor
MVX: Making freight shipping easier and coordinated using digital technology in Africa (IDG Connect)
Freight forwarding and shipping is a multifarious area of activity. Marine and air transport systems are inherently international in nature and assume multi-stakeholder dimensions, compounding the situation even further. The nature of this sector according to UNCTAD and other experts, creates an analytical challenge in the sense that the sector plays an important role as an input production factor augmenting other economic sectors such as trade, tourism, energy and fishing. Despite the fact that a third of countries in Africa are landlocked, maritime transport is still the main gateway to the world marketplace. However, the contribution and integration of the continent in the global maritime trade and its participation in supply of shipping services has been relatively marginal.
Shipping connectivity of African countries is greatly influenced by their geolocations. Those countries located in the corners are the ones that are best connected, where international shipping routes connect to major ports and sub-regional load centers. These include Egypt, Morocco, South Africa and Djibouti, Mauritius, Togo, respectively. With this inadequate shipping connectivity, Africa has to devise other means to better connect the continent to the global marketplace. What other better way to do this than using technology? Africa is now coming up with the right tech interventions for better shipping connectivity to the rest of the world.
Policy for recovery in Africa (Chatham House)
The Policy for Recovery in Africa Series is held in partnership with the United Nations Development Programme (UNDP) and brings together expert speakers and decision-makers. They examine and exchange ideas on key challenges, potential solutions, and approaches for implementation as Africa
Since its outbreak in December 2019, the Covid 19 pandemic has spread quickly across the globe, threatening the existence of humanity, global economic integration, value chain supplies and human mobility in general.
The Covid-19 pandemic has proved to us that regional integration can play a critical role in meeting the supply and demand needs of goods and services in our region. The Secretariat has undertaken a study which has shown a huge export trade potential of US$ 101.1 billion using 2019 Trade Statistics. We need to promote sourcing of available products from within our region to promote regional trade and development.
Some of these obstacles could be overcome through enhancing our productive capacities, strengthening market information on availability of quality products within the region, establishing tailor-made production lines for products that are demanded by other COMESA Member States, reviving the COMESA Trade Fairs, enhancing dissemination of market information and developing a trade information system/catalogue of products produced within the region among others.
The Sub-Regional Office for West Africa (SRO-WA) of the United Nations Economic Commission for Africa (ECA) and the Government of The Gambia launched on Wednesday, in Banjul, in hybrid format, the 24th session of the Intergovernmental Committee of Senior Officials and Experts (ICE) for West Africa on the theme “Leveraging the Implementation of the AfCFTA to Build Resilient and Sustainable Economies in West Africa in the Covid-19 Era”.
In his opening statement, the Minister of Finance and Economic Affairs of the Republic of The Gambia, Honourable Mambury Njie, said that “I want to challenge all participants in this very important meeting to critically discuss the specific policy issues with a view to coming up with sound policy recommendations for the sub-region.”
The Executive Secretary of ECA, Dr Vera Songwe said “One of the things that AfCFTA will be working on is to see that they provide more assistance to get the economy back on track”.
Unlocking investments for infrastructure projects in Africa - 15 years of NEPAD IPPF (AfDB)
The NEPAD-Infrastructure Project Preparation Facility (NEPAD-IPPF) fifteen years’ anniversary report presents the achievements of the Special Fund during its first fifteen years of existence.
Africa: Egypt leads as most attractive investment market (The Africa Report)
Egypt has come out on top with Morocco and South Africa the second and third most robust markets for investment, according to the latest Rand Merchant Bank report titled ‘Where to Invest in Africa 2021’. Notably, smaller nations like Rwanda and Botswana moved up the rankings from position five and thirteen in 2020, to position four and five respectively in the latest index. The report highlights a trend amongst investors willing to bypass traditional markets in Africa in favour of smaller states with economic hygiene.
Nigeria, 5 others adopt Yaoundé agreement on conduct to tackle maritime security (Vanguard)
Nigeria and five African countries, yesterday, agreed to adopt the Yaoundé Code of Conduct (YCC) with a view to sustaining the low level of pirate attacks on vessels in the Gulf of Guinea, GoG. The other countries are Ghana, Angola, Cameroon, Benin Republic, and Cote D’ Voire. The countries also agreed that relevant regional agencies must institutionalize a framework for regular dialogues that guarantee collaborative decision making and follow-ups from a response perspective so as to ensure that every part of the region is properly monitored and secured.
Lack of investment in data collection and use impeding development in Africa (Kenya Broadcasting Corporation)
African Union (AU) member states have been asked to invest in data collection, management, and governance to be able to effectively exploit resources for the good of the continent. The Project Manager for Fish Governance II at AUDA-NEPAD Dr. Clement Adjorlolo, says that the lack of the wherewithal to collect data and make it accessible for use by African countries is a major challenge.
“Organisations outside the continent are able to invest in data collection in Africa which is later stored in their countries,” he said and added, “Whenever such countries want to access the data there are restrictions. He noted that worse still, there is a lack of intra-Africa sharing of data, hence decision making on what can work on the continent is difficult.
Labour Migration Governance partners in Africa pledge to strengthen cooperation (African Union)
Representatives of partners implementing the AUC-IOM-ILO-ECA Joint Labour Migration Programme (JLMP) met virtually on November 3 to assess progress and plan the next steps to expand the continental initiative. The multi-partner initiative was launched in June 2018 to strengthen the regulation of labour migration and mobility for inclusive economic growth and regional integration on the African Continent, with JLMP Priority - the first phase of the programme - funded by the Swedish International Development Agency (SIDA) for 9 million USD expected to come to an end this year.
COP 26 updates
Africa must finance its adaptation, $100 billion commitment or not, experts say (AfDB)
Africa must have a comprehensive approach to climate resilience beyond adaptation financing, regardless of foreign contributions, experts said during a session titled “Adaptation Financing for Nationally Determined Contributions (NDCs)”. The session, held on Monday on the sidelines of COP26 in Glasgow, was dedicated to the implementation of NDCs in East Africa.
In his opening remarks, Anthony Nyong, Africa Director of the Global Center on Adaptation, said finance was not the only requirement for implementing Nationally Determined Contributions in Africa. “It takes much more than just money to implement NDCs,” he said, noting that “we need a revolution in knowledge, proper planning and finances.” Nyong added that Africans cannot implement NDCs without recognizing it as a developmental challenge. “We abound with adaptation solutions; what we need is scale and speed. These solutions will largely be driven by the private sector and, armed with this knowledge, we will increase implementation of the NDCs through the private sector,” he stated.
Climate finance for a transition away from coal: a chance to change history in South Africa (The Convgersation)
In the opening days of this year’s COP26 international climate conference, a financing partnership was announced between South Africa and a consortium consisting of France, Germany, the UK, the US and the European Union (EU). The partnership aims to support South Africa’s just transition to a low carbon and climate resilient economy and society. Essentially a just transition is one where no one is left behind. The partnership mobilises an initial R131 billion (US$8.5 billion) over the next three to five years. Some of this in the form of grants and some is concessional debt finance (cheaper than commercial debt).
AfDB launches climate change and green growth framework at COP26 (Engineering News)
The African Development Bank (AfDB) Group has launched its Climate Change and Green Growth Framework – the first of its kind by any multilateral development bank – at the COP26 climate conference in Glasgow, Scotland. Speaking at the Africa Day celebrations at the Africa Pavilion earlier this week, AfDB climate and green growth division officer-in-charge and manager Al Hamndou Dorsouma said the framework strengthens the AfDB’s ambition and vision to address climate change and promote green growth, building on over a decade of targeted efforts and lessons learnt.
The negative societal effects of climate change, such as loss of life and livelihoods, are already and will continue to be tragic and severe, and are a key concern to governments and individuals. More frequent and severe weather events, as well as a delayed transition to a low-carbon economy and the increasingly material financial losses these directly and indirectly cause are also impacting the financial system, with potential systemic consequences for financial stability. The threat posed to the global financial system by climate-related risks is recognised by the Financial Stability Oversight Council’s 2021 report on climate-related financial risk and the Network for Greening the Financial System’s (NGFS) October 2021 progress report on global supervisory and central bank climate scenario exercises. Extreme weather events could lead to damage of physical assets, including real estate, productive capital, and infrastructure, consequent property and casualty insurance losses, damage to
The Global Climate Risk Index 2021 analyses and ranks to what extent countries and regions have been affected by impacts of climate-related extreme weather events (storms, floods, heatwaves, etc.). The most recent data available for 2019 and from 2000 to 2019 were taken into account. The three countries most affected in 2019 were Mozambique and Zimbabwe, as well as the Bahamas. The Climate Risk Index (CRI) indicates a level of exposure and vulnerability to extreme events, which countries should understand as warnings in order to be prepared for more frequent and more severe events in the future. Impacts from extreme-weather events hit the poorest countries hardest as these are particularly vulnerable to the damaging effects of a hazard, have a lower coping capacity and may need more time to rebuild and recover.
Towards an international high-level panel for climate resilient water investments in Africa (Mail and Guardian)
Africa was high on the agenda as world leaders met in Glasgow on 1 and 2 November for the 26th session of the Conference of the Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC). The World Leaders Summit, hosted by Prime Minister of the United Kingdom Boris Johnson, resulted in global and historic commitments concerning deforestation, reducing methane emissions and signing up for a clean technology breakthrough agenda, among others. For African leaders, led by Félix Tshisekedi, President of the Democratic Republic of the Congo and current Chairperson of the African Union, the focus remained on securing climate finance for responding to climate change in Africa — specifically the $100-billion targeted annually for climate finance to underdeveloped countries, which has not yet been delivered.
Several rich countries have decoupled GDP growth from emissions (The Economist)
EVERY YEAR, carbon dioxide (CO2) is pumped into the atmosphere from dirty combustion and power plants. Over the past two centuries, more than 1trn tonnes of greenhouse gases have caused the Earth’s temperature to rise. Dramatic reductions in emissions are needed to limit global warming. It looks at last as though this might be happening. A recent report from the Global Carbon Project, a research organisation, found that over the past decade global CO2 emissions have started to reach a plateau.
COP26: Rich nations ‘resisting paying for climate loss’ (SciDev)
Urgent steps must be taken to change the “toxic” tone of negotiations relating to the irreversible impacts of climate change, science and civil society leaders have told political leaders at COP26. Delegates say wealthy countries have been digging in their heels against calls from climate-impacted countries for financial support to both avoid and address loss and damage. Non-government climate leaders have said that climate finance, particularly for loss and damage, is among the most important issues for developing countries to be discussed at the climate summit. But some say that the space to thrash out the problem has been restricted, with loss and damage talks being pushed to the sidelines.
Climate Champions Place Delivery and Accountability at Centre of Post-COP26 Agenda (UNFCCC)
Today, at the mandated UN High-Level Event for Global Climate Action - “Racing to a Better World”- the High-Level Climate Champions, Gonzalo Muñoz and Nigel Topping, formally reported to Parties on the progress made by non-state actors, and set-out the five-year plan -- Improved Marrakech Partnership for Enhancing Ambition -- to accelerate delivery during this decisive decade.
With significant new commitments from real economy actors on mitigation, adaptation, and mobilization of finance, focus turns now to driving implementation. At the event, the High-Level Climate Champions alongside the Marrakech Partnership (a global alliance of more than 320 major initiatives, coalitions, and NGOs), presented their five year plan, which has also been summarised today in the Yearbook of Global Climate Action.
How a new $100B green energy alliance will work (Devex)
Advocates for renewable energy and addressing climate change are applauding a new renewable energy alliance between a trio of philanthropic mega-donors — Bezos Earth Fund, IKEA Foundation, and The Rockefeller Foundation — and financial institutions, saying it could be instrumental in speeding up the development of technologies to reduce greenhouse gas emissions.
But the ambitious initiative also could face challenges as it gears up for quick action and works to implement accountability measures.
The Global Energy Alliance for People and Planet was launched last week during COP 26. According to a press release, the initiative is launching with $10 billion but wants to “unlock $100 billion in public and private capital” to address three areas: reaching 1 billion people with renewable energy, averting 4 billion tons of carbon emissions, and creating or improving 150 million jobs. It is focused on the global south.
Global trade
DDG Paugam highlights MC12 expectations for WTO at EU Parliament event (WTO)
This year’s Trade Policy Day focused on the theme of the EU’s trade policy in a changing world. The WTO-based multilateral trading system and regional and bilateral agreements feature as an integral part of the EU’s new Trade Policy launched last February. At a panel discussion on EU trade policy in a time of economic transformation and geopolitical instability, Committee members and stakeholders expressed a strong interest in the upcoming Ministerial Conference (MC12), which they view as a key opportunity for the WTO to highlight its role as a multilateral leader and to achieve substantial outcomes.
Speaking alongside EU Director-General for Trade Sabine Weyand and former South African Minister of Trade Rob Davies, DDG Paugam also underscored the importance of MC12 and the need to demonstrate that the WTO can deliver.
Negotiations on e-commerce advance, eyeing a statement at MC12 (WTO)
Facilitators of small group discussions reported on the work completed in recent weeks to find common ground in the areas of e-invoicing, cybersecurity, customs duties on electronic transmissions, open internet access and paperless trading. They reported that convergence is within reach for the latter two areas.
Members revisited the text proposals on non-discriminatory treatment of digital products. These proposals were most recently discussed at a meeting in February 2020. Members also discussed a recently submitted proposal on implementation periods for developing and least-developed countries for the future agreement on e-commerce.
Event looks at how to mitigate impact of rising shipping rates on trade flows (WTO)
The constraints faced by WTO economies due to recent spikes in shipping costs was the focus of intensive discussions on 10 November between WTO delegates, academics and representatives from the private sector.
Experts call for Improved Protection of African Fisheries (Inter Press Service)
With subsidies of global fisheries back on the World Trade Organisation’s agenda, experts are calling for African governments to upscale the protection of the sector long plagued by activities that continue to threaten the continent’s blue economy.
The chair of the negotiations, Ambassador Santiago Wills of Colombia, earlier in November 2021 presented a revised draft text on fisheries subsidies. This will be used for discussions aimed at resolving remaining differences ahead of the 12th Ministerial Conference from November 20 to December 3. The Director-General Ngozi Okonjo-Iweala called the subsidies “harmful” when the ministers met on July 15. She said she was cautiously optimistic that there could be an agreement on how to cap subsidies that contribute to overfishing.
World food import bill to reach record high in 2021 (UN News)
By the end of 2021, the global food import bill should extend beyond $1.75 trillion, marking a 14 per cent increase from the previous year, and 12 per cent higher than the previous forecast. According to FAO’s new Food Outlook, trade in foodstuffs has shown “remarkable resilience” to disruptions throughout the pandemic, but rapidly rising prices, pose significant challenges for poorer countries and consumers.
EU and US agree to start discussions on a Global Arrangement on Sustainable Steel and Aluminium and suspend steel and aluminium trade disputes (European Commission)
European Commission President von der Leyen and United States President Biden agreed today to start discussions on a Global Arrangement on Sustainable Steel and Aluminium. This marks a new milestone in the transatlantic relationship, and in EU-US efforts to achieve the decarbonisation of the global steel and aluminium industries in the fight against climate change. The two Presidents also agreed to pause the bilateral World Trade Organization disputes on steel and aluminium. This builds on our recent successes in rebooting the transatlantic trade relationship, such as the launch of the EU-US Trade and Technology Council and the suspension of tariffs in the Boeing-Airbus disputes. Steel and aluminium manufacturing is one of the highest carbon emission sources globally. For steel and aluminium production and trade to be sustainable, we must address the carbon intensity of the industry, together with problems related to overcapacity. The Global Arrangement will seek to ensure the long-term viability of our industries, encourage low-carbon intensity steel and aluminium production and trade, and restore market-oriented conditions. The arrangement will be open to all like-minded partners to join.
EU and US emerge from Trump-era trade wars to work with WTO again (Independent)
The US and EU have “grounded and addressed the two biggest trade irritants” lingering from the Trump administration and are now focused on strengthening the multilateral trading system, the EU’s trade chief said. In October, the US and EU agreed to pause tariffs on more than $10bn (€8.7bn) worth of transatlantic goods as “part of a broader reset” following four tumultuous years under former President Donald Trump, EU Commissioner Valdis Dombrovskis said in an interview yesterday at a Financial Times conference. A major component of the truce allows the EU to export 3.3 million tonnes of steel to the US without a 25pc Trump-era tariff, but any exports above that quota will be charged the duty.
Are the EU and UK heading for a trade war? (Gulf News)
If there is one thing that is predictable with the government of British Prime Minister Boris Johnson it is the lack of clarity on Brexit. It may be a matter of time before the Johnson government pulls the plug on the Brexit deal it negotiated with the European Union, saying that the Northern Ireland “protocol” isn’t working. There are several sure signs this is about to happen.
Soaring Metal Prices May Delay Energy Transition (IMF Blog)
The world’s historic pivot toward curbing carbon emissions is likely to spur unprecedented demand for some of the most crucial metals used to generate and store renewable energy in a net-zero emissions by 2050 scenario. A resulting surge in prices for materials such as cobalt and nickel would bring boom times to some economies that are the biggest exporters—but soaring costs could last through the end of this decade and could derail or delay the energy transition itself.
The extent of damage left by the illegal tobacco trade (Daily Maverick)
Illicit tobacco trade is an intricate problem. There is more to it than meets the eye, as it’s often linked to much larger criminal syndicates such as corruption, organized crime, tax evasion, and money laundering. Altogether, the illegal tobacco trade has become the third-largest ‘supplier’ of tobacco in the world, and the estimated loss of tax revenues around the globe is approximately USD 40 billion. This means that for every 1% we can ‘take back’ from the criminals, governments may effectively increase their revenue by USD 400 million. This loss of revenue has the domino effect of affecting the viability of otherwise law-abiding players in the tobacco industry.
Related News
tralac Daily News
Domestic trade news
Imports and exports feel effects of global disruption (Business Day)
Supply chain disruptions are having an impact globally with bottlenecks affecting manufacturing production and slowing down the pace of recovery in economies around the world. We also consider the frustrations encountered by both importers and exporters at our notoriously congested SA ports due to ageing infrastructure and equipment, staffing shortages and frequent weather disruptions.
Despite this, a commodity price boom has seen SA recording a trade surplus for more than a year, and the export sector is seen as a potential catalyst for a local economic recovery.
South Africa: Transitioning from Coal Reliance to Gas Power Generation (Energy Capital & Power)
With Africa’s energy transition comprising an overarching discussion point at African Energy Week (AEW) 2021 in Cape Town, the platform session on transitioning from coal reliance to gas power generation in South Africa provided African stakeholders with the opportunity to establish their own strategies to drive the transition.
“Gas should play quite a significant role in a just energy transition in South Africa,” stated Akash Latchman, Senior Vice President for Gas Sourcing and Operations for Sasol, adding that, “To unleash the potential of gas is critical in alleviating energy poverty in South Africa.”
Africa is faced with a two-pronged challenge, the first of which is the continent’s significant energy crisis – in which over 600 million people currently lack access to electricity and over 900 million lack access to clean cooking – and the second, the global climate crisis. While western nations are opting for the immediate end to fossil fuel utilisation, oil and gas is critical for Africa if the continent is to address energy poverty. At the South African panel discussion, participants emphasised how natural gas has emerged as the ideal solution to both of these challenges. Representing the ideal transitionary resource, as well as a readily available resource, gas may be the solution the country, and continent, needs to accelerate its energy transition and meet domestic demand.
Namibia exceeds interest payment benchmark (New Era)
Namibia’s interest payments on debt as a percentage of revenue increased from 11.9% to 13.2% in the 2020/21 financial year. The current level of interest payments exceeded the statutory benchmark of 3.9% of gross domestic product (GDP), and 10% of the revenue set out in the Debt Management Strategy 2018-2025.
“The increase in interest payments is due to significant increase in borrowing to fund the budget deficit, resulting from the outbreak of Covid-19,” stated Shiimi.
“The decrease in revenue was recorded in the main tax categories of income tax on individuals that decreased by 2.7%, value added tax (VAT) fell by 24.9%, other taxes on income and profits shrank by 23.2%, withholding tax on interest decreases by 18.1%, while other taxes income category fell by 10.6%. The only income category which showed strong growth was the taxes on international trade and transactions (SACU),” indicated Shiimi.
KAM, Posta partner to tap intra-regional trade under AfCFTA (The Star, Kenya)
Kenya Association of Manufacturers (KAM) has partnered with the Postal Corporation of Kenya (PCK) to tap into e-commerce business and intra-regional trade for its members.
Speaking during the signing of the agreement, Phyllis Wakiaga, the CEO of KAM said Posta’s network of more than 600 branches countrywide, and linkages with other postal organisations in the region would come in handy, at a time when Africa is implementing the Africa free Continental Trade Area (AfCFTA).
The partnership will see Posta offer same-day and overnight courier services, rider dedicated services, clearing and forwarding services to the association and its members.
Ministry seeks duty waiver for animal feeds yellow maize (Business Daily)
The Ministry of Agriculture has recommended a waiver of duty on yellow maize to allow the importation by processors as an intervention to lower the cost of feeds as directed by President Uhuru Kenyatta.Waiver of duty on yellow maize is one of the three measures that the ministry has forwarded to the National Treasury in line with the order from President Uhuru Kenyatta.The measures also include removal of import duty on other raw materials like sunflower and cotton seed cakes and leasing of government land for local production of the two products.
NBK, logistics firm DP World in deal to link SMEs to global market (Business Daily)
National Bank of Kenya (NBK) on Wednesday signed a partnership with Dubai-based logistics firm DP World to link local traders to the global market but mainly UAE and Asia.In the agreement, NBK will offer financial solutions to buyers and sellers from Kenya while providing an avenue for them to interact and network with other traders.Kenyan businesses will be able to reach other traders from across the globe through DP World’s DUBUY.COM, an E-commerce platform focusing on business-to-business import and export.”The partnership is designed to offer the best value to our MSME customers and allow them to effectively engage in commercial trading links with international markets and especially the UAE,” NBK Managing Director Paul Russo said.
Kenya’s horticulture earnings fall Sh12bn (Business Daily)
Horticulture earnings dropped by Sh12 billion in 10 months to October, attributed to lower quality produce that attracted reduced prices at the global market amid competition from Latin countries.The Directorate of Horticulture says Kenya earned Sh116.8 billion between January and October, down from Sh128.8 billion last year.The growth in volumes, which was 16 percent higher in the review period was not enough to offset the decline in value as Kenya’s produce was low priced when compared to those from Mexico and Peru.,The drop marks the steepest decline in earnings for the horticulture industry in the last couple of years, raising concerns over quality standards, especially in the avocado sector where some farmers have been harvesting immature fruit. “The decline can be attributed to quality and high competition from Mexico and Peru,” said the directorate.
Economy rebounds 10.1pc in quarter two (Business Daily)
Kenya’s economy expanded 10.1 percent in the second quarter of the year on the back of a rebound in economic activity compared with a similar period last year when tough Covid-19 containment measures led to a 4.7 percent contraction.Data from the Kenya National Bureau of Statistics (KNBS) showed the growth in the April-June period was faster that first quarter when Gross Domestic Product (GDP) slowed to 0.7 percent compared with 4.4 percent in corresponding period in 2020.”The growth recorded was mainly as a result of easing Covid-19 containment measures that facilitated gradual resumption of economic activities,” said Treasury Secretary Ukur Yatani.
Tanzania, Egypt trade volume reaches 87.3bn/- (Dailynews)
The trade volume between Tanzania and Egypt has increased from 8.4bn/- in 2018 to 87.3bn/- in 2020 as the two sides determine to reduce existing trade imbalances among themselves. Speaking at a joint held in Cairo, Egypt on Wednesday, President Samia said that the two countries have a good record of cooperation in various areas including investments adding that apart from the trade, Tanzania has also registered 26 projects from Egypt investors worth USD 1.3bn, which have created 2,206 jobs to locals. “It is unfortunate that the balance of trade is in favour of Egypt but we Tanzania promise to put more efforts so that we can produce more and use the opportunity of trading between our two countries,” President Samia, who is in Cairo for a three-day official visit, told her counterpart President Abdel Fattah el-Sisi.
The Zambia Social Protection and Jobs Public Expenditure Review (World Bank)
While opening the first session of the 13th National Assembly on September 10, 2021, the President of the Republic of Zambia, Hakainde Hichilema, reiterated the government’s commitment to creating a united and prosperous Zambia, to “further enhance the provision of social protection to the poor and vulnerable in our society” and to “enhance the provision of equitable access to economic opportunities to our citizens, especially our youth.”This commitment reinforces Zambia’s ambitious Vision 2030 goals, aimed at transforming the country into a prosperous middle-income nation by 2030.
Zambia’s Public Expenditure Review (PER) recommends building a robust SPJ sector using a four-pronged SIMPLE strategy. This includes short-term actions of sustainable financing, medium-term actions of enhancing efficiency and impact and improving coherence, and long-term actions of larger coverage and plugging coverage gaps. Priority setting will be critical to define a basic minimum set of policy reforms and programmatic operational improvements that the government can act on in the immediate term.
AfDB officials seek increased investment in cassava in Nigeria (Premium Times)
The Director of Agriculture and Agro-industry of the African Development Bank (AfDB), Martin Fregene, has said increasing investment in cassava production in Nigeria will reduce the annual food importation bill of African countries estimated at about $35 billion.
The summit themed: ‘Catalyzing and Scaling Private Sector-Led Cassava Seed Development,’ was organized by the Foundation for Partnership Initiatives in the Niger Delta (PIND) in partnership with Building an Economically Sustainable Integrated Cassava Seed System, Phase 2 (BASICS-II) and International Institute for Tropical Agriculture (IITA). It is aimed at bolstering private sector-led investment in the cassava seed sector, as well as identifying and engaging stakeholders on the policy reforms required to galvanize the cassava seed sector in order to raise productivity and drive industrial growth projections.
2022 Budget to focus on jobs, skills training – Finance Minister (BusinessGhana)
The 2022 budget statement and economic policy expected to be presented to parliament next week Monday will focus on jobs and skills training for the youth to address the growing unemployment in the country, Finance Minister, Ken Ofori-Atta, has said. “Clearly, the 2022 budget and economic policy will be intervening on access to jobs and skills set, making it possible and providing the enablers to free people into enterprise,” he said during the signing of the memorandum of understanding between the Government of Ghana and the African Development Bank (AfDB) and the African Development Fund (ADF) for 2022 annual meetings.
WTO: Minister Ganoo outlines progress made by Mauritius at the fifth Trade Policy Review (Government of Mauritius)
The fifth Trade Policy Review (TPR) of Mauritius is being held at the World Trade Organisation (WTO) in Geneva from the 09 to 11 November, where the country’s trade policies and practices will be examined. The Mauritian delegation is led by the Minister of Land Transport and Light Rail, Minister of Foreign Affairs, Regional Integration and International Trade, Mr Alan Ganoo.
In his opening address this afternoon, Mr Ganoo highlighted that as a Small Island Developing State (SIDS) open to the world economy, Mauritius has been hit hard by the COVID-19 pandemic. Even if the lockdowns imposed in 2020 and 2021 have effectively prevented the spread of the virus in the local community, it has nonetheless severely affected our economic activities, he added.
‘Wake-up call’ to assist DR Congo battle food insecurity (UN News)
The Food and Agriculture Organization (FAO) and World Food Programme (WFP) warned that without help, widespread and unabated food insecurity could worsen in the coming months. Some 27 million people, one-quarter of the country’s population, face crisis or emergency acute food insecurity conditions, fuelled by poor harvests, violence-driven displacement, disease and collapsing infrastructure, according to a newly published Integrated Food Security Phase Classification (IPC) analysis for the central African nation. “The food situation for many people in the Democratic Republic of the Congo remains desperate, with so many different obstacles – insecurity, disease, devastation and lack of infrastructure, low access to quality inputs and finance to name but a few – ganging up against their chances of being able to properly feed themselves and their families”, said Aristide Ongone, FAO’s DRC Representative.
Côte d’Ivoire: Unlocking The Potential Within (Forbes Africa)
The government’s National Development Plan 2021-2025 is intent in maintaining a stable socio-political environment while mobilising its domestic resources following the ramifications of the pandemic. It targets the private-sector investment and construction needed to spur productivity, advance diversification and inclusive growth while boosting job creation, in particular regarding the nation’s youth. With solid relations with international institutions and bilateral partners, Côte d’Ivoire is committed to making its business environment ever more attractive and its economy more competitive by relaxing economic policies in a bid to attract foreign companies and promote business creation, especially in the digital, information and technology sector. Paul-Harry Aithnard, CEO of Ecobank Côte d’Ivoire says, “The private sector is a driving force because all ideas not only come from the state but also come from the private sector. At Ecobank, we believe that digitisation and the digital economy make it possible to have an inclusive economy and that with technology we are capable of anything today. Technology allows for a true inclusive economy and true inclusive development.”
Without Nigeria, AfCFTA implementation is incomplete, says Secretariat (The Guardian Nigeria)
Acknowledging Nigeria’s market size despite continued drag in the implementation of the African Continental Free Trade Area (AfCFTA) agreement, the AfCFTA secretariat has stated that achieving the trade objectives is incomplete without Nigeria implementing the protocols. Almost one year after the implementation of the AfCFTA commenced, Nigeria is yet to unveil guidelines and implementation strategy for the trade deal, raising concerns for the organised private sector. The Secretary General, AfCFTA, Wamkele Mene, while speaking at the Africa Day of the Lagos International Trade Fair (LITF) themed, ‘Boosting intra-African trade’, noted that without Nigeria, the implementation of the AfCFTA would be incomplete. Though he lauded the efforts of the Ministry of Industry, Trade and Investment, he said the potential of the AfCFTA market expansion is supported by market capacity to boost trade volumes and increase GDP growth per capita, while maintaining that market liberalisation will encourage SMEs to contribute to global supply chains.
Africa
World Bank projects African economy to go up a full percentage point in 2021 (The Africa Report)
Global financial institutions are revising upwards their outlook on Africa’s economic growth, signalling that the continent is recovering from the impact of Covid-19 and becoming more resilient, despite slower vaccine rollout. The IMF and World Bank’s latest economic outlook shows Africa is set to emerge from the 2020 recession sparked by the Covid-19 pandemic. The World Bank, in its latest edition of ‘Africa’s Pulse’, projects the economy will expand by 3.3% in 2021 – a full percentage point rise compared to its April forecast.
“This rebound is currently fueled by elevated commodity prices, a relaxation of stringent pandemic measures, and recovery in global trade,” said the World Bank. “The recovery is supported by favourable external conditions on trade and commodity prices. It has also benefited from improved harvests and increased agricultural production in a number of countries,” says Abebe Aemro Selassie, Director, African Department, IMF.
Africa records highest growth in September cargo volumes (The East African)
Africa witnessed the highest growth in international freight cargo volumes in September compared to any other region in the world as the airlines continue recovery from the impact of Covid-19.Data from the International Air Transport Association (IATA) indicates that Africa recorded a 34.6 percent growth in the review period to mark a ninth consecutive increase on month to month.The volumes, according to IATA, are 20 percent above the pre-crisis 2019 levels but have been trending sideways for the past six months.”African airlines saw international cargo volumes increase by 34.6 percent in September, the largest increase of all regions for the ninth consecutive month,” said Willie Walsh, IATA’s Director General.
Experts call for aligned and harmonized national frameworks to achieve industrialization (UNECA)
Experts from the Economic Commission for Africa (ECA), Sub-Regional Office for Southern Africa and the government of Malawi held a two-day workshop to conceive an action plan towards alignment of Malawi’s national and regional industrialization frameworks such as the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC). A summary report presented at the workshop indicated that although Malawi has developed industrialization policy frameworks and implementation plans, these frameworks are not fully aligned to the regional frameworks and are neither harmonized amongst themselves nor in synergy. The report advised that for the success of the regional approach to industrialization through the pursuit of regional value chains, linkages and beneficiation as envisaged in the COMESA and SADC frameworks and the Tripartite, a harmonized industrial policy environment to underpin the regional industrial base, promote, leverage and exploit the benefits envisaged under both the Tripartite and AfCFTA, is imperative.
Monetizing Natural Gas in Africa (Africanews)
Africa’s natural gas resources have the potential to accelerate socio-economic growth and eradicate energy poverty. Accordingly, many nations are seeking enhanced investment in order to maximize and monetize resources. As the continent’s premier energy event, African Energy Week (AEW) 2021, aims to build on this momentum, promoting innovative strategies to monetization, addressing challenges hindering development, and chartering a way forward for the African gas sector.
Speaking at an investor forum under the theme ‘Monetizing Natural Gas: Current Opportunities and Challenges,’ panel participants investigated Africa’s natural gas landscape.
“The limitation that we as African countries have from a research and development point of view. There are two constraints for us to develop: financing and technology. We have to find ways of financing our own development. You need to find better ways of opening up the space. If we depend more on FDI, we rely on Ministers in Europe,” stated Dr Mokoka.
MFS Africa raises $100m for Africa expansion (Engineering News)
Digital payment firm MSA Africa has raised $100-million through an equity and debt financing round, which marks another milestone in the company’s expansion, following a series of acquisitions and investments in other African financial technology (fintech) companies, including the recently announced acquisition of Baxi, in Nigeria. MFS Africa’s vision is to make borders matter less, which it enables through interoperability across payments schemes, borders and currencies. Over the past year, MFS Africa has accelerated its expansion efforts across Africa, the company says.
Towards gender and renewable energy innovations (Southern African news Features | sardc.net)
The nexus between energy and gender is critical in advancing the uptake of renewable energy in Africa and the rest of the global community. In this regard, it is important for policymakers and energy experts to mainstream gender in all renewable energy initiatives, as well as share experiences. This is in light of the fact that most renewable energy initiatives tend to overlook gender issues and assume that all energy challenges and solutions impact men and women in a similar way.
African Nations Align on Sustainable Development Reporting Using UNECA Toolkit (UNECA)
Botswana has become the 10th African country this year to receive training in the Integrated Planning and Reporting Toolkit (IPRT) developed by the United Nations Economic Commission for Africa (UNECA), after a four-day virtual course. The dashboard – which combines the goals and indicators of both the UN and the African Union (AU) – supports countries in structuring national development plans aligned with the targets of the UN’s 2030 Agenda for Sustainable Development and the AU’s Agenda 2063. The toolkit helps to assess progress on SDGs, including the eradication of poverty and hunger, gender equality, and access to sustainable energy, alongside AU targets, from developing high standards of living to applying modern agricultural practices for increased productivity. Alignment between the objectives of governments and intergovernmental organisations is aimed at flushing out inconsistencies in reporting and goal setting, and promoting efficient planning and administration, especially where there is overlap between goals.
The African Development Bank Group and the Agence Française de Développement on Wednesday signed a co-financing and partnership agreement to strengthen their relationship and leverage additional resources for impactful projects in Africa.
The agreement, which runs for five years, from 2021 to 2026, targets an indicative amount (€2 billion) in co-financing over its first three years. It will complement the current partnership between both institutions through mutual understanding, by facilitating staff exchanges, sharing knowledge, and jointly organizing events. The existing partnership already covers such key sectors as infrastructure, water and sanitation, agriculture, and the private sector. The new agreement supersedes an earlier framework agreement signed in November 2015.
Africa at risk as rich nations hoard doses, eye vaccine diplomacy (The East African)
About 42 African countries are set to miss the World Health Organisation’s mid-2022 target of inoculating at least 70 percent of their population against Covid-19 as rich nations continue to hoard the vaccines, a WHO official has said.This, WHO says, has led to slow delivery of vaccines and vaccination across the continent.While addressing a geopolitics conference in Kampala on Wednesday, the WHO immunisation and vaccination specialist in Uganda, Dr Andrew Bakainanga said wealthy nations are holding vaccine stocks three times their population due to uncertainties of the pandemic in the near future. This is as poor African countries are struggling to get the jabs.
Regional Experts to identify investment incentives for Antibiotic production in the region (EAC)
The East African Community has convened a two-day workshop with the objective of validating a draft study report on investment incentives for antibiotic production in the region. AC Director of Productive Sectors, Mr. Jean Baptiste Havugimana said that the region aspired to develop the pharmaceutical industry as part of the region’s social and political integration agenda. “As a region we recognize the strategic importance of developing local production of pharmaceutical products in promoting access to affordable, high quality, essential medicines; an aspiration we pursue through the implementation of the EAC Regional Pharmaceutical Manufacturing Plan of Action,” he added. The Director observed that there was still a high dependency on imported pharmaceutical products across the region, while local firms lack capacity to manufacture advance formulation.
‘Critical gaps’ in African food safety detected: ‘Urgent investment is needed’ (FoodNavigator)
The new research, released at the AOAC’s International Sub-Saharan Africa Section’s annual meeting this week, highlighted a ‘continuing lack’ of ISO certified food safety testing laboratories, with only 63% of African labs certified to ISO 17025: 2017 compared to 100% in Europe. The membership survey also highlighted gaps in training programmes, with 40% of respondent reporting that their establishment had no active training. More than one-fifth of labs, it transpired, report that they do not use official analytical methods.
“These results would be troubling enough from both a public health and a trade enablement viewpoint at the best of times,” AOAC International Sub-Saharan Africa President Dr Owen Fraser said. “But this comes just a few months after Africa has launched its Continental Free Trade Area, with the ambition to increase intra continental exports by over 80% by 2035.”
Cyber crime experts gather in Accra (Graphic Online)
Security professionals, lawyers and cyber crime investigators in the Economic Community of West African States (ECOWAS) have gathered in Accra for a four-day training aimed at enhancing investigations and prosecution of e-crimes in the region. The training, which is benefiting judges and forensic experts, is also to ensure a safer and more secure cyberspace. It is being organised by the Centre for Strategic and Defence Studies (CSDS), Africa, in collaboration with INTERPOL, the Security Governance Initiative (SGI) Secretariat of the Ministry of National Security, the Association of Private Investigators, Ghana and Lex Mundus and Cencla, an international law firm. Dubbed: “Cyberx Africa 2021”, the training will focus on issues on cyber law, incidence response, mobile and digital forensic investigations and international co-operation for the effective investigation and prosecution of cyber and terrestrial crimes in ECOWAS countries.
Asia-Africa trade: How Ghana can take advantage of it (Myjoyonline)
Asia’s trade with Africa is growing at a faster rate than other blocks, despite Africa having strong ties with its colonial masters, Europe.Africa’s most important suppliers of manufactured goods are Europe (35%) and (30%) Asia. Currently trade with Asia is gradually matching that of Europe.
In Asia, trade is mainly dominated by India and China. China’s Ministry of Commerce indicates that trade between China and Africa increased by 40.5% year-on-year in the first seven months of 2021, and was valued at a record high of $139.1 billion.Trade between China and Africa also almost doubled between 2020 and 2021, and over the last 20 years, trade between China and the region has increased twenty-fold However, Chinese investments on the continent has remained small over the years, estimated at only $3.1 billion in 2017 – just 2.5% of China’s overall Foreign Direct Investments. Only about 10,000 Chinese companies as of 2008 operate in Africa.Singapore, one of the richest Asian countries in the world known for excellence in port activities also does not have a strong footprints in Africa. So far, 60 Singapore businesses have been identified on the continent.
Africa, Europe’s heavy hitters to meet (BusinessGhana)
Some of Africa and Europe’s biggest blue chip business leaders will convene in Johannesburg this month to unlock economic opportunities in high-growth sectors at the 8th edition of the high-powered “Southern Africa Europe CEO Dialogue”.
he Head of African Affairs at The European House - Ambrosetti, Pietro Mininni, says Africa offers unique opportunities due to the recent implementation of the African Continental Free Trade Area, the largest free trade area in the world, connecting almost 1.3 billion people across 54 countries with a combined GDP of roughly 3.4 trillion US dollars. “At The European House - Ambrosetti we are strongly convinced that Africa occupies a particularly significant and important position on the regional and international stage. Many unfairly believe that Africa will be the continent of future economic opportunities; instead we are convinced that it is the place to be today, the continent of present opportunities,” says Mininni. The Southern Africa Europe CEO Dialogue has as its express goal promoting strong and stable dialogue and supporting the long-term growth of strategic trade and economic relations between Europe and Southern Africa.
Will France Derail West Africa’s Common Currency? by Simplice A. Asongu (Project Syndicate)
An unprecedented Africa-France summit took place at the beginning of October in Montpellier, France. For the first time since these summits began in 1973, no African heads of state were invited. Instead, French President Emmanuel Macron held discussions with students, entrepreneurs, artists, and athletes. The purpose of the gathering was to find ways to “rebuild” the relationship between France and Africa, especially in light of growing anti-French sentiment in many Francophone countries across the continent. But there are reasons to question the sincerity of France’s initiative to reset relations with its former African colonies, particularly given Macron’s intervention in the creation of a new shared currency for West Africa.
Pak-Africa Trade Development expo heads to Lagos (P.M. News)
The second Pakistan-Africa Trade Development Conference and Single Country Exhibition will take place next month in Lagos. The event will see a range of leading exporters from Pakistan coming to showcase their products while looking for business partnerships with Nigerian companies. Industry sectors that will be represented at the event include pharmaceuticals, beauty and cosmetics, automotive parts, agricultural machinery, chemicals and paints, food and beverages, textiles, services, kitchenware, electronics and much more.
COP 26 highlights
Draft document of Glasgow pact says climate finance is insufficient (The Hindu)
A draft document of the agreement that countries, including India, are negotiating in Glasgow, Scotland underlines that the promised climate finance by the developed countries is “insufficient to respond to the worsening climate change impacts in developing countries” and urges the developed countries to “urgently scale up.”The provision of finance for mitigation and adaptation of the impact of global warming is one of the key sticking points. The United States, Canada, several countries of the European Union and the United Kingdom, among others, have dragged their feet on a commitment to provide $100 billion annually by 2020. India, along with several other developing countries, has for years pointed out that not providing this money implies that the developed countries’ demand to coerce major developing countries into a net-zero commitment by mid-century is unjustified. It also violates the core principle of equity and climate justice, they aver.
Developing nations take the lead in tackling climate change (SAnews)
This is according to a Ministerial Joint Statement from the Ministers of Brazil, South Africa, India and China representing the BASIC Group at the at the 26th Conference of Parties to the United Nations Framework Convention on Climate Change (COP 26) in Glasgow, United Kingdom. “Brazil also announced new climate goals: (i) 50% of emissions reductions by 2030; (ii) zero illegal deforestation by 2028; (iii) restore and reforest 18 million hectares of forests by 2030; and (iv) achieve, in 2030, the participation of 45% to 50% of renewable energies in the composition of the energy matrix,” the statement said.
Renewable energy in Africa: Update in the era of climate change (JD Supra)
Africa’s contribution to greenhouse gas emissions historically has been negligible, and currently comprises less than 2 percent of the world’s total. At the same time, African countries collectively are expected to commit to reduce the continent’s contribution to greenhouse gas emissions by 32 percent by 2030, through a strategy to be presented to the United Nations Framework Convention on Climate Change before COP26 in November 2021.3 Unlike its contribution to emissions, the impacts of climate change on Africa have been disproportionately severe, and it is feared that the continent will carry a large share of the burden of climate change—especially if the world fails to limit further increases in average temperatures. This article explores the current outlook for investments in renewable energy projects across Africa.
COP26 Climate Summit Not Hearing Africa’s Concerns (OilPrice)
While developed nations announce at the COP26 climate summit pledge after pledge to reduce emissions, the concerns of the less developed countries are not being heard during the closed-door talks, a delegate from Ghana said, as quoted by Upstream. “The stated commitments by the G20 and developed nations are very different from what’s happening in the negotiating room,” the representative of the Ghanaian ministerial delegation said at an Adaptation panel at the summit.
Developing nations need much more than the current one-fifth of global funding on fighting climate change, delegates at the summit were told. “African countries continue to contribute little to global emissions, so deep is the continent’s energy poverty. Yet Africa is on the front lines of dramatic climate impacts, from floods to cyclones and drought that can wipe out decades of development gains overnight,” Guterres’ said.
The African Development Bank has welcomed $136 million in additional donor commitments for the Sustainable Energy Fund for Africa (SEFA). The announcements were made on Monday, during an event at the COP26 conference featuring government ministers and a panel of leaders in renewable energy. The event was an occasion for SEFA donors to reaffirm their support for the Fund’s institutional priorities. SEFA is a multi-donor trust fund managed by the African Development Bank.
United Kingdom Minister for Africa, Vicky Ford, said: ‘‘Too many people living across Africa still do not have access to electricity. This means children can’t do their homework, businesses can’t operate, and economies can’t grow. Which is why it is essential we support African countries in a just and inclusive energy transition, so everyone can access affordable, reliable and sustainable energy.” She said additional UK and global support to the Sustainable Energy Fund for Africa will help make this a reality, providing more affordable electricity to households, communities and businesses across the continent. “Working together to support African countries to lower dirty emissions and grow job-creating economies is good for Africa, good for the UK and good for the planet,” she added. The UK announced during Energy Day at COP26 an additional 4 million pounds contribution to SEFA.
US, African Union announce new partnership to reach Paris climate agreement goals in Africa (Today News Africa)
The United States and the African Union Commission are launching a new partnership to reach Paris agreement goals in reducing carbon emissions and building long-term adaptation plans in Africa, the Administrator of the U.S. Agency for International Development Samantha Power announced on Monday. Speaking at the United Nations Conference of the Parties (COP26) in Scotland, Power announced the launch of the Comprehensive Africa Climate Change Initiative (CACCI) alongside Josefa Sacko, African Union Commissioner of the Department of Agriculture, Rural Development, Blue Economy and Sustainable Environment, and other African Union Member States representatives. As many African countries disproportionately bear the brunt of climate change, Power asserted that adapting and strengthening resilience to climate change is critical.
COP26: New US$143 million investment to restore Great Green Wall ecosystems and increase climate resilience in the Sahel, announce IFAD and GCF (Farmers Review Africa)
A new US$143 million investment programme will ensure millions of the most at-risk rural people living in the Sahel region of West Africa can adapt to climate change, with a wide-reaching plan to restore degraded land and provide climate information systems and agricultural insurance. The announcement was made today at the UN climate change conference (COP26) during a signing ceremony of the grant agreement between the UN’s International Fund for Agricultural Development (IFAD) and the Green Climate Fund (GCF). The Africa Integrated Climate Risk Management Programme will operate in seven countries: Burkina Faso, Chad, The Gambia, Mali, Mauritania, Niger and Senegal. This is part of the African-led Great Green Wall (GGW) initiative which aims to restore degraded landscapes in the Sahel, one of the world’s poorest regions.
Donors pledge $400 million to the Least Developed Countries Fund (Climate Home)
Twelve donor governments pledged $413 million in climate financing for the Least Developed Countries Fund (LDCF) at Cop26 on Tuesday.
“Adaptation and building resilient societies are needed much more today than ever before,” said Yeshey Penjor, minister of agriculture and forests for Bhutan. “As we continue to address our climate adaptation challenges in LDCs, we are facing a massive resource gap.” Bhutan chairs the LDCF, a climate resilience fund set up in 2001, managed by the Global Environment Facility (GEF), and which exclusively targets the 46 countries identified by the UN as having the biggest development needs.
Since its inception 20 years ago, the LDCF has provided $1.7 billion in grants for over 350 projects tailored to the climate adaptation priorities of LDCs, and estimates suggest that more than 50 million people now benefit from the Fund’s work.
UK Pledges £500m to Combat Deforestation, Promote Trade in Nigeria, 27 Others (This Day)
The United Kingdom has announced a £500 million fund to support the implementation of the Forest, Agriculture and Commodity Trade (FACT) roadmap to protect forests while also promoting development and trade in Nigeria and 27 other countries across the globe. The announcement was made during the world leaders summit even as an additional £65 million has been committed to support a ‘Just rural transition’ to help developing countries shift policies and practices to more sustainable agriculture and food production. At the COP26 meeting in Glasgow, commitments made by countries are expected to help implement the Glasgow Leaders’ Declaration on Forests and Land Use which is now endorsed by 134 countries, including Nigeria, covering 91 per cent of the world’s forests.
Production Gap Report 2021 (UNEP)
The Production Gap Report — first launched in 2019 — tracks the discrepancy between governments’ planned fossil fuel production and global production levels consistent with limiting warming to 1.5°C or 2°C. The report represents a collaboration of several researchers and academic institutions, including input from more than 40 experts. UNEP staff provided guidance and insights from their experience leading other gap reports. This year’s report presents the first comprehensive update of the production gap analysis since our 2019 assessment. The report also tracks how governments worldwide are supporting fossil fuel production through their policies, investments, and other measures, as well as how some are beginning to discuss and enact policies towards a managed and equitable transition away from fossil fuel production. This year’s report features individual country profiles for 15 major fossil fuel-producing countries and a special chapter on the role of transparency in helping to address the production gap.
International
At WTO, India and South Africa call for inclusive development of global e-comm (BusinessLine)
India and South Africa have made a joint submission at the WTO seeking inclusive development of global e-commerce and measures, including technology transfer, to bridge the digital divide between the rich and poor that has “worsened’’ in the times of Covid-19. The joint paper also highlighted the need for developing countries to enact laws on data sovereignty and preserve their policy and fiscal space to revive trade competitiveness.The timing of the paper is important as it comes just weeks before the 12th WTO Ministerial Conference (MC12) where a group of countries, including Australia, Japan, Singapore and the US, are trying to push plurilateral negotiations on trade-related aspects of e-commerce that doesn’t have the support of many developing country members including India.Citing an UNCTAD 2019 report, the two countries said in the paper submitted to the WTO Committee on Trade and Development on Thursday, “Three developed countries (US, Japan and Germany) together account for 45 per cent of global e-commerce sales...and a handful of digital platforms have captured the cross-border e-commerce markets. Covid-19 has further increased the market dominance of digital platforms and big-tech firms.”
Ghana to host World Trade Promotion Organizations Conference and Awards (News Ghana)
The World Trade Promotion Organizations Conference (WTPO) will be jointly hosted by the Ghana Export Promotion Authority (GEPA) and the International Trade Centre (ITC), the joint agency of the United Nations and the World Trade Organization. A meeting with ITC Executive Director, Madam Pamela Coke-Hamilton and GEPA Chief Executive Officer, Dr Afua Asabea Asare in Accra on 26 October 2021, confirmed the participation of President Nana Addo Dankwa Akufo-Addo at the conference. A statement issued in Accra by the organisers said participants would also explore new opportunities arising from digitalization and the African Continental Free Trade Area.
Report: Debt Transparency in Developing Economies (World Bank)
Global debt surveillance today depends on a patchwork of databases with different standards and definitions, resulting in large gaps in debt information for many low-income developing countries, a new World Bank Group analysis found.Debt Transparency in Developing Countries provides a detailed look at debt reporting in low-income developing countries (LIDCs)—many of which are facing record-high debt levels exacerbated by COVID-19—to inform stakeholders in sound and transparent debt management.
When debt data is available, the report notes that it tends to be limited to central government loans and securities, excluding other public sector components and debt instruments. For some LIDCs, debt data disclosed across various sources show variations equivalent to as much as 30 percent of a country’s gross domestic product—often because of differing definitions and standards and recording errors. These challenges leave LIDCs open to the dangers of inadequate debt transparency—such as the risk of debt distress and delayed debt restructurings—and threatens the ability of countries to overcome the pandemic and generate a green, resilient and inclusive recovery. Additionally, without clarity of the extent of their indebtedness, governments would be unable to make sound decisions about borrowing.
Milestone day for e-commerce and a chance to boost consumer trust (UNCTAD)
Singles’ Day, also known as “Double 11”, marked on 11 November, is a Chinese unofficial holiday that is the highest spending e-commerce day in the world. This celebration was started by e-commerce giant Alibaba in China in 2009, offering significant discounts to consumers. Since then, it has spread to other e-commerce platforms such as JD.com and Pinduoduo Inc. and become a multibillion-dollar annual shopping day in a little more than a decade. Last year, around 800 million consumers participated in the day, while Alibaba and JD.com recorded around $115 billion in sales, setting new records for both companies.
Business-to-consumer disputes are also on the rise, testing consumer confidence in the digital economy. Before the 2020 e-commerce boom, a 2017 global UNCTAD survey already revealed that 49% of internet users identified lack of trust as the main reason for not shopping online. This trend was confirmed in 2019. A new UNCTAD research paper entitled “Consumer trust in the digital economy: The case for online dispute resolution” shows that despite the continual growth of e-commerce, consumer trust in it is not necessarily growing. Consumer dissatisfaction across different sectors and industries has been identified as a key challenge for government officials.
Managing Technology in Finance: Global Approaches for the Digital Age (IMF)
Technological change has long been a driver of human progress. And the financial sector has been no exception. From the development of double-entry book-keeping, to the introduction of ATMs and modern payment systems—each wave of innovation has left its mark.
These trends are intertwined technologically, but we are only beginning to understand many of the challenges. From the perspective of financial regulators, the key question is how to reap the benefits of technology in terms of financial inclusion, efficiency, risk management, and oversight, while simultaneously managing the financial stability and integrity risks.
In three separate and recent papers, IMF staff have found strong complementarities across these issues. They point to the need for adapting policy approaches and regulation to these new challenges, and to the need for enhanced cross-border cooperation to address risks that do not have national boundaries.
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National
Sugar cane growers call for sugar tax to be scrapped (Engineering News)
Industry association the South African Canegrowers has called on Finance Minister Enoch Godongwana to scrap the Health Promotion Levy (HPL) – also called the sugar tax – to enable the Sugar Industry Value Chain Masterplan to succeed. In June 2021, a study commissioned by the National Economic Development and Labour Council (Nedlac) showed that, in the first year of its implementation, the sugar tax contributed to 16 621 jobs losses, a R653-million decline in investment into the economy, and a R1.19-billion decline in the sugar industry’s contribution to the South Africa’s gross domestic product. Cumulatively, the tax cost South Africa more than R2-billion, the association said on November 10.
Kenya charts new roadmap to tap blue economy resources (Business Daily)
Kenya has received a major boost in harnessing its blue economy resources after the Inter-Governmental Authority on Development (IGAD) committed itself to work with the government in the next three years to come with better ways to exploit the maritime sector. During that period, Kenya is expected to complete its blue economy strategy which will detail how the country will exploit its untapped marine resources both in the inland and offshore waters.
Sweden’s government is supporting IGAD with a funding of $5 million for three years to improve the governance of the blue economy in Djibouti, Kenya, Somalia and Sudan.
Aviation sector at 90pc of pre-Covid levels, says PS (Business Daily)
Kenya’s aviation market has picked up to 90 percent of pre-Covid levels as the sector records steady growth in air travel following the disruptive effects of Covid-19. Principal Secretary for Transport Joseph Njoroge said the sector is now recording an encouraging improvement in traffic. “In Kenya our domestic market is vibrant and we are at 90 percent compared to the levels in 2019. International traffic has also picked up to 71 percent,” said Mr Njoroge. The PS said the vaccination drive has enhanced the international traffic movements especially in Europe and Middle East
“Covid-19 pandemic has adversely affected the entire aviation sector including airlines, airports, regulatory and air navigation agencies, security agencies, commercial and retail operators and travelers,” said KAA managing director Alex Gitari. “Having witnessed signs of steady recovery in the industry, this event presents us with a platform to mobilise stakeholders from across our airports to continue with the seemingly tireless efforts in fighting the pandemic as we chart our way forward as an industry.”
PwC warns of confusion over KRA notice on new excise duty (Business Daily)
Pricewaterhouse Coopers (PwC) on Tuesday warned of possible confusion over the legal notice issued on November 2 by Kenya Revenue Authority (KRA) commissioner-general Githii Mburu that seeks to adjust excise duty levied on various products. “This is likely to create confusion as the effective date could be subject to varying interpretation, which is bound to present compliance challenges to businesses and disputes with the tax authority,” PwC’s tax consultants said in a statement.
KRA pushes for increased legal trade between Ethiopia, Somalia (The Star, Kenya)
Kenya Revenue Authority plans to establish posts at Rhamu and Mandera on the Ethiopia and Somali borders respectively. It will also put up a trade facilitation centre at Suftu,(Kenya-Ethiopia) and construct two bridges to facilitate movement of goods and persons across the borders. The establishment of the One Stop Border Posts, supported by TradeMark East Africa, is expected not only to spur growth in import and export trade but also provide an opportunity for legitimate trade and revenue collection.
Commissioner for Customs and Border Control Lilian Nyawanda said KRA seeks to facilitate faster movement of goods and persons at the Kenya-Ethiopia border, and facilitate cross-border trade between Kenya and Somalia (upon opening of the borders).
Coffee farmers implore gov’t to root out distributors of sub standard Agro chemicals. (Capital Radio)
Poor harvests of agricultural products have been blamed on companies that supply sub standard and fake pesticides to farmers thereby causing losses. As a result farmers have asked the government to guarantee the source of seedlings especially coffee that can guarantee high yield and productivity. Coffee is a cash cow that has helped us to educate our children, build comfortable houses and some of us have managed to buy cars using proceeds from coffee since. The farmers especially coffee farmers are asking for establishment of a minimum price for coffee which can be reached upon through farmers groups that not only mobilize and organize farmers but also help them to market and sell our coffee out of Uganda at a favorable price. This follows the launch of a farmers project titled; ‘‘Fair for All –aimed at Improving Coffee Value Chains’’.
Months of trade wars slash imports from Uganda 34pc (Business Daily)
The value of imports from Uganda dropped 34 percent in eight months to August as trade wars between the two countries took a toll on the flow of goods. Trade data from Central Bank indicates that the imports from Kenya’s landlocked neighbour dropped from a record high of Sh3.2 billion in February to Sh2.09 billion in the review period, hitting a seven- month low. The two countries have had trade disputes now running into the second year after Nairobi banned products like milk and poultry from Uganda.
In March, Kenya banned maize imports from Uganda owing to high levels of aflatoxin, which exceeded the required limit of 10 parts per billion. In September, Kenya cut sugar imports from Uganda by 79 percent on its scheduled sugar exports to the country, reigniting trade disputes between the two East African Community members.
Tanzania exports to Africa increased by 11.8% in 2020 (EABC)
Speaking at the launch of the Africa Due Diligence Platform – Mansa, Mr. Kalisa, EABC CEO said “in 2020, Tanzania exports to Africa stood at USD. 2.27 billion an 11.8% increase from USD. 2.03 billion in 2019.” He urged the EAC bloc to align trade policy, eliminate of NTBs, ease access to trade finance for SMEs, enhance productive capacity and factor market integration to tap into the AfCFTA market. He stated that timely information and trust between buyers & sellers is important in trading and lauded the Mansa Platform for providing Know Your Customer Information.
Burundi exports to africa hit USD. 62 million in 2020 (EABC)
According to International Trade Centre, Burundi’s export of goods to Africa hit USD. 62.3 million in 2020, a 25% increase from 2019. The key exported products include coffee, tea, wheat, tobacco, beverages, iron bars and rods, glassware, furniture; beddin and Edible fruit and nuts. 38% of Burundi’s total exports to the globe were to Africa.
In 2020 good imports from Africa into Burundi reached USD.267 million composing of 29% of Burundi’s total imports from the world. Lime, cement, sugars, fertilizers, Cereal, plastics, paperboards, essential oils, cosmetics are among the top imported products from Africa.
Manufacturers to lose N1.9trn in 3 years as FG mulls excise duties (Daily Sun)
The proposed re-introduction of excise duty collection on non-alcoholic drinks would see producers of the items lose up to N1.9 trillion in revenue sales between 2022 and 2025. Manufacturers Association of Nigeria (MAN) revealed this yesterday at MMS Business Discourse themed: “X-raying the Proposed Excise Duty Regime for Carbonated Beverages in a Recovering Economy.” Speaking at the event, the Chairman of Fruit Juice Producers branch of MAN, Mr. Fred Chiazor said that the losses indicate a 39.5 per cent loss due to imposition of the new taxes with concomitant impact on jobs and supply chain businesses. The group called for a suspension of the fiscal policy, even as it noted that the proposed excise duty collection would shrink the sector’s contribution to the GDP, which is currently, represents 35 per cent of manufacturing.
Nigeria convenes business, security summit in Paris (The Sun Nigeria)
The Federal Government of Nigeria is organising a Nigeria International Partnership Forum (NIPF), a high-level event to accompany and strengthen Nigeria’s participation in the Paris Peace Forum, the Presidency has said. According to a statement by Senior Special Assistant to the President on Media and Publicity, Garba Shehu, the one-day NIPF will bring together the Nigerian and French governments and private sectors in wide-ranging discussions focused on security, regional stability, trade and industrialisation.
“Additionally, it will spotlight Nigeria’s immense trade and investment opportunities, reset false and distorted narratives about Nigeria, and shed light on the efforts, initiatives and successes achieved in both the public and private sectors, as the country charts a trajectory of recovery from the COVID-19 induced global economic downturn.”
Revenue generation: Regulatory council faces govt challenge (New Telegraph)
Six years after resistance, criticism and litigation by port stakeholders, the Senate and House of Representatives Joint Committees on Land and Marine Transport have compelled the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) to generate at least N10 billion from the port into government’s coffer. Before now, there had been disagreement among Customs agents, freight forwarders and CRFFN over payment of Professional Operating Fee (OPS) in the port industry.
He added that freight forwarders had no interest in the POF collection at this time, adding that there were pending litigations against the CRFFN over POF. Prior to the latest development, ANLCA had complained that the fee would increase the cost of doing business and that the collection of the fee by the Council would amount to violation of an order of a Federal High Court sitting in Lagos, which had directed that status quo be maintained pending determination of a case instituted by the association.
Nigeria’s infrastructure gap (Daily Sun)
President Muhammadu Buhari recently disclosed that Nigeria needs $1.5 trillion over a 10-year period to bridge the nation’s infrastructure gap. President Buhari stated this at the high-level segment for Heads of States and Government at the recent 26th Conference of Parties (COP26) in Glasgow, Scotland. According to the President, Nigeria is ready for international investments in infrastructure development and has taken the expansion in infrastructure in critical sectors of the economy as one of the ways to support the administration’s promise to lift 100 Nigerians out of poverty by 2030.
It is to address the infrastructure deficit that the G7 nations have made elaborate plans to mobilise funds for infrastructure investment in low-and middle-income countries.
Nigeria, Bulgaria bridge investment, trade gaps (Vanguard)
Twenty-five years after the collapse of the Soviet Union, Bulgaria and Nigeria, Tuesday unveiled the Nigeria-Bulgaria Business Exchange Platform with a view to strengthening the bilateral cooperation and bridging the trade and investment gaps between the two countries. Ambassador Extraordinary and Plenipotentiary of the Republic of Bulgaria, Mr. Yanko Yordanov, yesterday, in Abuja, described the platform as, “something that has been the goal of our cooperation for so long .”He added, “This marks an excellent bilateral cooperation between the Giant of Africa and the Republic of Bulgaria.”
Formulate policies to shape Ghana’s shipping, maritime industry – GSC charges government (BusinessGhana)
The Ghana Chamber of Shipping has urged the government to formulate policies and initiate shipping and maritime policies that will move Ghana forward. Mr Stanley Raja Korshie Ahorlu, an Executive Council Member of the Chamber, interacting with the media said there was the need for Ghana to have concrete policies that would put it in a better position to benefit more from the shipping and maritime sector. Mr Ahorlu added that Ghana’s shipping supply chain could offer the country a lot, therefore, reiterating that policy formulators must identify where the country could effectively derive from right from the warehousing of goods to the other segments of shipping.
Trade Policy Review: Mauritius (WTO)
Mauritius is a small island with a population of close to 1.3 million people. About two decades of liberalization reforms have transformed Mauritius into an almost duty-free economy. Its openness to trade has been one of the reasons behind its economic success, also supported by a long tradition of parliamentary democracy, good governance, and strong institutions. The country relies heavily on imports for its industrial inputs and for a large share of its food supplies, while maintaining the general openness of its services markets to foreign competition. Its trade in goods and services as a share of GDP declined from 105% in 2014 to 90% in 2019 and 76% in 2020. The fall in 2020 was mainly attributable to the COVID-19 pandemic, while the decline between 2014 and 2019 reflects, inter alia, the continuation of the downward trend in merchandise exports, a stagnation of services trade, while Mauritius was registering steady domestic growth.
Over the review period, the main drivers of growth were the services sector, particularly tourism, financial services, information and communications technology (ICT) services, and construction. The transformation of the Mauritian economy away from its main manufacturing industries, namely sugar and textiles and clothing, towards a service-oriented economy continued, particularly as an investment gateway to Africa. The reforms have resulted in further liberalization of its trade regime for goods with a generally low tariff protection and more policy emphasis on trade in services. However, the COVID-19 pandemic has reinforced the tendency towards greater state involvement in the economy, mainly in industries considered critical to the national interest.
Joint Statement on the US-Egypt Strategic Dialogue (Ahram Online)
Secretary of State Anthony J. Blinken and Minister of Foreign Affairs Sameh Shoukry led the U.S.-Egypt Strategic Dialogue on November 8-9, 2021, in Washington, D.C. The two sides noted the coming centennial of U.S.-Egypt diplomatic relations in 2022 and reaffirmed the importance of the U.S.-Egypt strategic partnership and identified areas in which to deepen bilateral and regional cooperation, including economic and commercial affairs, education, cultural issues, consular affairs, human rights, justice and law enforcement, and defense and security.
The two delegations reaffirmed their shared commitment to broaden and deepen bilateral economic and commercial cooperation, and to cooperate closely on climate issues. They shared ideas on increasing investment in their respective economies, providing more opportunities for their people, and combating the climate crisis.
Cape Verde’s new president commits to strengthening ties with traditional partners (China.org.cn)
The new president of Cape Verde, Jose Maria Neves, pledged on Tuesday to strengthen the special ties and bilateral relations with the traditional friends and partners of Cape Verde. He made the promise in a speech at his inauguration ceremony, before 12 foreign delegations, five of which were headed by heads of state. Africa must be given priority as a continent to which Cape Verde belongs, he stressed in his speech. He called for speeding up the progress toward regional integration at the economic level, while defending the specificities and specific needs of Cape Verde.
According to him, a “very strong” neighborhood policy is necessary, given the regional community and the states that make it up. He also said he advocated “strong action” with Asian countries and the Persian Gulf countries.
Africa
IATF2021 Advisory Council holds 13th meeting virtually (Afreximbank)
The IATF2021 Advisory Council is closely following the preparations for the trade fair, which is opening its doors to the public on 15 November 2021 in Durban. During their 13th meeting held virtually on 3 November 2021, the members of the council once again went over the planning with a fine-tooth comb, ensuring that all the arrangements were in place for a smooth event.
The IATF2021 organisers and the KwaZulu-Natal Provincial Government reported a very satisfactory state of preparations and general enthusiasm for the event. Nearly 8,000 delegates from 95 countries, including 52 African countries, are now registered to participate in IATF2021. The trade fair is also expecting more than 1,000 exhibitors and seeks to facilitate more than $40 billion in trade and investment deals.
AfCFTA Will Double Intra-Africa Trade Flows – Anatogu (Business Post Nigeria)
The African Continental Free Trade Area (AfCFTA) will help to deepen economic integration in the continent, says the Senior Special Assistant to the President on Public Sector Matters and Secretary of the National Action Committee on AfCFTA, Mr Francis Anatogu, as part of a continued effort to drive implementation. Mr Anatogu also said that AfCFTA’s goals will also improve and expand intra-Africa trade, enable rule-based engagement for facilitating dispute resolution and addressing injurious trade practices. He made this known on Monday at a leadership stakeholders’ consultation on the theme ‘Defining the Trade in Service Strategy for AfCFTA’. Mr Anatogu also stated that the pact would assist in the harmonisation of policies, regulations and standards, as well as lead to customs co-operation and mutual administrative assistance.
African Export-Import Bank (Afreximbank) and the International Islamic Trade Finance Corporation (ITFC) (ITFC-idb.org), signed a US$250 million facility to provide funds for the Bank to advance procurement of COVID-19 vaccines and drive a trade-based economic recovery. The ITFC facility will help advance Afreximbank’s COVID-19 response programme for countries in which both organisations operate, securing vital goods for the health of local populations and enabling a swifter return to economic activity. The facility will also enhance the Bank’s capacity to provide trade finance resources at a time of critical need for the continent’s export development and industrialization.
Ports: build them – the business case is clear, says Arise P&L (African Business)
Ports have dominated infrastructure discussions in the last two years, with increased congestion and bottlenecks as a result of Covid-19 holding back global economic recovery. Global ports are vital to trade – serving as gateways for 80% of trade merchandise by volume and 70% by value – and a key component of economic growth and economic diversification. The situation in Africa is no different. Congestion and lack of infrastructure have inevitably led to delays, directly increasing costs and reducing competitivity. This past decade has seen massive investments in African ports. From Dakar to Djibouti and Durban to Tangier, the African coast has seen the emergence of modern port infrastructure to serve the needs of a continent experiencing rapid growth.
Africa Economic Recovery – The Role of Digital Tech in Efficient Ports and Free Trade (Africanews)
As Africa’s economy recovers from the impact of the pandemic, how are ports keeping up? Not quickly enough – according to The Star’s (Kenyan Newspaper) report “Africa’s Ports: Rapid Transformation”. The report points to the fact that the existing infrastructure at many ports is insufficient for current demand. At the same time, port congestion is a critical challenge for ports across the continent.
Port congestion causes millions in losses, compounding the challenges of economic recovery in Africa. Even so, the outlook for the continent’s economy looks positive, thanks to the momentum generated by the African Continental Free Trade Area (AfCFTA) – a free trade area that commenced trade on January 1, 2021. World Bank’s Africa’s Pulse forecasts that the sub-Saharan Africa economy will grow by 3.4% in 2021. The report cites appropriate pandemic control, a growing digital economy, and a faster-than-expected recovery in commodity prices as factors helping the region’s economic recovery. It also notes the crucial role of free trade over the next 12 months, with African economies expected to rapidly integrate into regional and global industrial and value chains.
Within the AfCFTA context, how can ports keep up with demands, particularly in terms of customs and efficiency? The answer is digital technology.
To Integrate Its Economy, Africa Must Improve Connectivity (World Politics Review)
Africa’s leaders and policymakers have long identified connectivity, tourism and, more broadly, mobility – human, capital and otherwise – as key to the continent’s economic structural transformation. For example, the African Union’s Agenda 2063, through seven key aspirations, has identified several programs and initiatives promoting connectivity and mobility as central to accelerating shared growth and development in Africa, as well as to forging a common identity. Among its flagship projects intended to realize this ambition, the bloc has identified the need for an integrated high-speed train network connecting the continent’s capitals and commercial centers; a continent-wide free trade area, known today as the African Continental Free Trade Area; the removal of restrictions on Africans’ ability to travel, work and live within their own continent, including with the creation of a continent-wide passport; a single African air transport market; and the establishment of a pan-African forum for financial institutions.
EAC leaders set to approve Congo’s admission to bloc (The New Times)
There are high chances that the leaders of the East African Community (EAC) will approve the application by DR Congo to join the regional bloc during the Heads of State Summit scheduled to convene before this year ends, sources have told The New Times. According to the sources, Kinshasa presented a strong case for admission into the bloc.
On Tuesday, November 9, Nshuti told The New Times that regional ministers in Charge of EAC Affairs are set to meet from November 26 to 27 in preparation for the Summit and that “Council will confirm the date after agreeing on substantive issues to be presented to Heads of State.” Asked specifically about DR Congo’s admission chances, he said: “As regards the entry of DR Congo, I am almost sure it [Summit] will approve admission.”
ECOWAS Experts validate Texts, to strengthen Customs Union and Operations across the Region (ECOWAS)
The 4th meeting of the joint management committee of the customs union has begun today, a three (3) day meeting in the city of Accra, Ghana. The meeting will review all the technical issues in eight (8) Supplementary acts and regulations of the Customs texts, make amendments and validate these cats with recommendations, which will be presented to the ministers on Friday, 12th November, 2021 for further review and approval and onward presentation to the Council on Ministers for their adoption and implementation in member states.
Commissioner for Customs, Trade and Free Movement, Mr. Konzi Tei, noted that despite the despite the pandemic, which is currently raging the world and disrupting the economic and social order, the turn out for the meeting was very impressive, showing that the pandemic has not weaken our determination and our resolve to work diligently for the economic integration of the community.
COMESA Council of Ministers Meet (COMESA)
The COMESA Council of Ministers Meeting conducted their 42nd meeting today, to take stock of the status of implementation of regional integration programmes in the last one year. Attended by Ministers responsible for trade, commerce, industry and foreign affairs, the meeting received reports of the sectoral meetings that have been held to date.
The Vice President of Zambia, Hon. Mrs. Mutale Nalumango commended COMESA for embracing information and communication technologies in the implementation of the various trade facilitation programmes. These include automating customs clearance procedures, the online non-tariff barriers reporting and monitoring system as well as the electronic Certificate of Origin prototype. The prototype is ready for piloting and it is expected enhance cross-border trade and investments. “Digital trade is now shaping the global economies. It is important that we remain relevant in the global market by embracing the new ways of integration with others…especially in the COVID-19 era and post COVID,” she added.
Addressing the Ministers, Secretary General Chileshe Kapwepwe said a study undertaken by the Secretariat using 2019 trade statistics, shows a huge export trade potential of US$ 101.1 billion. “We need to promote sourcing of available products from within our region to promote regional trade and development,” she said.
Africa: Post-Covid, pharma industries look to provide medicines locally (The Africa Report)
A new determination to provide medicines locally – supported by government, local business and health activists – is providing the “pharma” industry with a multi-billion dollar investment opportunity. Targeting a billion-plus consumer market, international pharmaceutical companies and local ‘pharmapreneuers’ are in a race to boost Africa’s healthcare manufacturing and wrestle the market from Asian drug companies which sell mainly cheap generic drugs on the continent.
The continent’s pharma market is projected to grow at a rate of 5.9% between 2018 and 2022 to reach a total of over $25bn. That’s not pocket change for investors who are keen to cash in on the demand by building the continent’s local capacity to manufacture drugs.
Africa’s largest convening on Bioeconomy (EAC)
Globally, the ideal of a bioeconomy is being embraced as a sustainable model that brings together all commercial activity surrounding the use of renewable biological resources – such as crops, forests, animals and micro-organisms (like bacteria), agricultural waste and residual materials – to solve challenges related to food, health, biodiversity and environmental protection, energy and industrial processes. “Africa, with its rich biological diversity, and a relatively large proportion of arable land, is well positioned to tap into these opportunities, and build a competitive, sustainable bioeconomy,” said Hon. (Dr.) Peter Mathuki, the East African Community (EAC) Secretary General. “Indeed, the model could enable the continent to innovate around its primary production especially in agriculture, the backbone of most economies in the region, and also in sectors like aquaculture, forestry, health and industry.”
The 2nd Eastern Africa Bioeconomy Conference is to be held on 10th and 11th November, 2021.
IGAD-Sustainable Development Through Blue Economy (IGAD)
The Intergovernmental Authority on Development (IGAD) today inaugurated the National Validation Workshop on the Baseline Assessment Report of the Contribution of Blue Economy to the Sustainable Economic Development of Kenya.
The workshop will capture contributions from the different sectors of Blue Economy for the national economic development of Kenya. The report will be updated through extensive group discussions and thorough review of the document. The updated baseline report will be available soon and will serve as an input to develop the National Blue Economy Strategy for Kenya.
Green hydrogen market presents huge opportunity for Africa – Mantashe (Mining Weekly)
The green hydrogen market presents a huge opportunity for Africa to position itself as a global competitor in future green energy markets, Minerals Resources and Energy Minister Gwede Mantashe has told the Africa Energy Week.
South Africa welcomed the commitments made recently to invest in renewable energy, he said in reference to last month’s announcement of 25 preferred bidders selected in the fifth round of the Renewable Energy Independent Power Producer Procurement Programme. “This adds impetus to our commitment to a just energy transition and meeting the challenges of climate change,” he said.
As Africa sought to transition to a net-zero future, the continent should look into the role of mineral resources such as the platinum group metals, rare earths, and many others that abound in African countries, Mantashe added.
Opportune moment for West Africa to rise in textile value chain (Fibre2Fashion)
West Africa, one of the fastest growing regions in Africa, comprises 17 countries. It is one of the largest cotton producing regions in the world with Benin, Ivory Coast and Burkina Faso respectively being the sixth-, seventh, and eighth-largest cotton growing countries. However, only two per cent of cotton grown here is locally turned into textiles, and the remaining is sent to other countries, with over 90 per cent making it to Asian countries for further processing. Thus, the West African cotton-rich countries end up importing textiles at a value that is estimated to be over three times the value they get by exporting their cotton.
EAC to develop integrated urbanisation, population growth plan (The Star, Kenya)
Plans are underway to establish an East African regional spatial plan to address population growth, urbanisation and economic growth. Planners from EAC member states are meeting in Malindi to deliberate on planning for the next decade to address urbanisation and increased population. Top on the agenda is a spatial framework for the EAC, which will guide and integrate how the regional economies will grow spatially. The five-day convention has brought together planners, policymakers and counties to develop a 10-year strategy to address population growth and urbanisation challenges.
“Labour, being a factor of production, means we cannot manage all the three other resources capital, machinery, without manpower,” he said. He said Kenya’s growth rate is 2.3 per cent as of last year, while Tanzania is at 2.9 per cent and Uganda at is 3.3 per cent, adding that at least 83 million people come to the three countries each year.
COP 26 updates
COP 26: Contentious issues of finance, carbon markets pushed to week 2 (Down to Earth Magazine)
CoP26 President Alok Sharma reported progress made during week one in Glasgow in an informal stocktaking plenary November 8 The President of the 26th session of the Conference of the Parties (CoP26) to the United Nations Framework Convention on Climate Change (UNFCCC), Alok Sharma, presented a report on the work done over the past week.
Discussions were reported to be positive on a technical level on enhanced transparency framework, but some issues are still pending. On common timeframes, the SBI Chair reported that conclusions of the draft decision with nine options have been forwarded and needed to be consolidated during week two.
Opinion: Embracing green energy industrialisation to tackle climate change and drive inclusive growth (Engineering News)
South Africa – together with the broader Southern African region and the rest of the African continent – are bearing the brunt of climate change. The evidence is undeniable and mounting, with multiple recent global and local reports painting a bleak picture of the future.
A new report that BCG collaborated on with the National Business Initiative (NBI) and Business Unity South Africa (Busa) found that South Africa is one of the countries most vulnerable to the impacts of climate change, facing the risks of rising temperatures and increased aridity and rainfall variability that will have significant and devasting consequences on biodiversity, local livelihoods, regional food security and people’s overall health and wellbeing if no proper risk identification and adaptation is implemented at both a country and regional level. These emerging consequences of climate change come with a high price tag – costing African economies between 3% and 5% of their gross domestic product on average, according to President Cyril Rampahosa in his opening statement at the recent meeting of the Committee of African Heads of State and Governments on Climate Change (CAHOSCC).
It is clear that the situation is serious – but there is a silver lining. Our report with the NBI and Busa found that South Africa understands the need to build resilience to the impacts of climate change by developing robust adaptation and mitigation plans for the country to move from a fossil fuel-based energy system to a net-zero emission economy by 2050 in a just and inclusive way.
Africa, India call for $1.3 tn per year in climate finance from rich nations (The Indian Express)
While developed countries have failed to put together even the $100 billion per year in climate financing as promised, African nations and some other developing countries, including India, have put a figure on the enhanced flow of finance that the developed world must deliver in the coming years – at least $1.3 trillion per year from 2030. A group of 24 nations that call themselves Like Minded Developing Countries (LMDCs), as well as countries from Africa, on Monday evening put forward this demand in a proposal for enhanced finance flows that they are pushing for inclusion in the final decisions that will be agreed at the climate conference in Glasgow. In their proposal, these countries have said that developed countries, which are obligated to provide financial resources to the developing world to help in dealing with climate change, must be asked to “mobilise jointly at least $1.3 trillion per year by 2030”.
Poor nations ‘squeezed’ as debt rises and climate cash falls short (Thomson Reuters Foundation)
The costs for vulnerable countries to adapt to global warming are up to 10 times higher than available funding, the United Nations said on Thursday, warning rising indebtedness is putting them under more strain in dealing with surging climate threats. Developing nations alone will need up to $500 billion by 2050 for adaptation, which includes things like building flood defences, planting urban trees and introducing drought-resilient crops, the U.N. Environment Programme (UNEP) said in a report. But just a fraction of the money needed is on the table, with the gap widening and the rising cost of servicing debt due to the COVID-19 pandemic preventing countries from spending on crucial measures to adapt to global warming, the report said.
The World Needs to Quit Oil and Gas. Africa Has an Idea: Rich Countries First (The New York Times)
As negotiators at the Glasgow climate talks try to agree on greenhouse gas cuts, African leaders say poorer countries can’t be expected to remake their systems as quickly as wealthy ones. A swift transition is crucial in the global fight against climate change. But not only would that be particularly costly in poorer nations, many African countries have an abundance of natural gas or other fossil fuels, and they argue forcefully that the rest of the world doesn’t have a right to tell them not to use it.
Proven crude oil reserves on the African continent total more than one hundred billion barrels spanning eleven countries, with Libya and Nigeria among the 10 biggest producers globally. The region is rich in gas, too: Combined, Nigeria, Algeria and Mozambique hold about 6 percent of the world’s natural gas reserves.
As world leaders meet at COP26 in Glasgow, some African leaders and activists are, for the first time, vocally opposing a speedier pivot to renewables for their countries. Instead, they are pressing for a slower transition, one that would embrace a continued reliance on fossil fuels – particularly natural gas, which burns more cleanly than coal or oil, but which still pumps planet-warming carbon dioxide into the atmosphere.
Business ready to do its part for climate goals (The Japan Times)
Rising temperatures and harsh weather patterns – once risks that were on the horizon – have arrived. The devastation to our environment should come as no surprise. In the last three decades, global greenhouse gas emissions have shot up by more than 60%. Temperatures are now 1.2 C above pre-industrial levels – uncomfortably close to the 1.5 C limit needed to preserve our environment.
These are dark developments. But fortunately, there is hope. We live in an era of immense innovation, with breakthrough technologies reshaping our economies and societies. If we steer this innovation together, we can stave off the worst environmental outcomes.
Global business tells governments at COP26: put a price on carbon, but do it the right way (ICC)
ICC has today called on governments to “get smart” in how they use carbon pricing instruments to accelerate the transition to a net-zero economy at the lowest possible economic cost. At an informal dialogue with finance ministers at COP26, the global business organization published the findings of an extensive survey of companies’ experience operating under the 60 different carbon pricing regimes in force today throughout the world. The results point to widespread concern amongst business about the growing fragmentation of systems used to price greenhouse gas emissions – emphasising that greater international harmonisation of policy approaches will be essential to mobilize the private investment needed to achieve net-zero emissions by 2050.
Carbon emissions of richest 1% set to be 30 times the 1.5°C limit in 2030 (Oxfam International)
The carbon footprints of the richest 1 percent of people on Earth is set to be 30 times greater than the level compatible with the 1.5°C goal of the Paris Agreement in 2030, according to new research out today. It comes as delegates grapple with how to keep this goal alive at the COP26 meeting in Glasgow. In 2015, governments agreed to the goal of limiting global heating to 1.5°C above pre-industrial levels, but current pledges to reduce emissions fall far short of what is needed. To stay within this guardrail, every person on Earth would need to emit an average of just 2.3 tons of CO2 per year by 2030 ―this is roughly half the average footprint of every person on Earth today. Today’s study, commissioned by Oxfam based on research carried out by the Institute for European Environmental Policy (IEEP) and the Stockholm Environment Institute (SEI), estimates how governments’ pledges will affect the carbon footprints of richer and poorer people around the world. It treats the global population and income groups as if they were a single country.
Top Agricultural Commodity Companies to Accelerate Action Towards Net-Zero Emissions (WEF)
Twelve of the world’s biggest global agricultural trading and processing companies have issued a joint statement committing to a sectoral roadmap by COP27 for enhanced supply chain action consistent with a 1.5°C pathway. The statement, announced at the World Leaders’ Summit on Forests and Land Use at COP26, signals a commitment to take urgent collective action to include other key stakeholders in their supply chains. The goal is to identify solutions at scale to further progress on eliminating commodity-driven deforestation and reducing greenhouse gas emissions (GHG).
OACPS Leaders Statement for COP26 (ACP)
In the margins of the twenty-sixth session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), the Organisation of African, Caribbean and Pacific States (OACPS) released a statement from OACPS Leaders on Climate Action for COP26 on 1 November 2021, in Glasgow. Noting the stark findings of the recent IPCC AR6 Climate Change 2021 Report, the Statement stresses that COP26 needs to deliver increased ambition and action if the Paris Agreement’s objective of limiting global warming to well below 2 and preferably to below 1.5 degrees Celsius, compared to pre-industrial levels, is to be achieved. Encouraging other countries to join them in promoting ambitious climate action, the Leaders Statement calls for COP26 to send a strong political signal and commitment to deliver a number of key priorities.
New report reveals COVID-19’s impact on the United Nations’ environmental footprint (UNEP)
Each year, the UN publishes the ‘Greening the Blue’ report, which provides data on the organization’s environmental footprint and efforts to reduce it, as per the Strategy for Sustainability Management in the United Nations System 2020-2030 (Phase I).
Greening the Blue 2021 shows how COVID-19 changed how UN entities work and engage with one another, personnel, member countries, partners, and other organizations. Much of the UN system’s work moved online and the use of digital technologies became paramount to the continued delivery of the UN’s mandate. This shift had several positive environmental impacts. For instance, at some UN entities, online events support increased 100 per cent during 2020. Online events have the potential to dramatically reduce the carbon footprint of major international meetings and can be more inclusive than physical events.
Zim begins climate change mitigation efforts (The Herald)
Zimbabwe is now moving into the phase of implementing its nationally determined contributions (NDC) to reduce net emissions of greenhouse gases and so mitigate climate change, Environment, Climate, Tourism and Hospitality Industry Minister Mangaliso Ndlovu said on Monday. Minister Ndlovu said Zimbabwe submitted its low emissions development strategy and the revised nationally determined contribution to UNFCCC last month. Zimbabwe’s revised contributions present a conditional 40 percent economy-wide per capita emissions reduction target by 2030. “This revised NDC target represents a 7 percent upward revision from the first generation NDC and includes an adaptation component to address the high vulnerability of the country to climate change,” he said.
International
Working group on small business discusses preparations for MC12 (WTO)
Mexico provided an update on the development of the platform, outlining several new elements, such as user guides for MSMEs and policy makers, which will be available when the platform is launched at MC12. The Working Group intends to present the platform to WTO members during the Ministerial Conference and to the business community on 2 December on the margins of the Business Forum.
The group also intends to announce the winners of the “Digital Champions for Small Business” initiative at a virtual side event during MC12. This initiative, launched by the Working Group in partnership with the International Chamber of Commerce and the International Trade Centre, is aimed at helping small businesses go digital and increase their participation in international trade.
SMEs turn to influencers to push products (The Standard)
For businesses, competing to catch the eye of consumers is a marathon whose ending is not supposed to come. The end of one long race is the beginning of another, especially as the tastes and preferences of customers keep changing. The race is even tougher for new businesses, caught in the daunting task of navigating through the noise in order to catch the attention of consumers from the hands of larger corporates. While such businesses may not have the financial muscle to compete with the big brother who has the advantage of experience as well, using influencers has been fronted as the alternative to reaching the consumer. Through these individuals – some commanding legions on social media with a wavelike ripple effect on consumer behaviour – a new business or an old business with a new product can find breakthrough.
WTO ministerial meeting in Geneva to plan pandemic remedies (The Financial Express)
Trade ministers in Geneva later this month will prepare a work plan on pandemic remedies like enhanced preparedness, response, and resilience to help members of the World Trade Organisations (WTO) out of the crisis by making necessary supplies available. The work plan will address issues related to crisis response, preparedness and resilience, and focus on topics discussed in the ministerial declaration, officials said in Dhaka. Issues like trade facilitation, export restrictions, regulatory coherence, transparency and monitoring, and scaling-up of production and distribution of essential goods and services will be included in the work plan.
An effective capacity building initiative run by the Organisation for Economic Co-operation and Development (OECD) and the United Nations Development Programme (UNDP) continues to strengthen developing countries’ ability to fight tax avoidance by multinational enterprises, with operations running in 47 countries and more than USD 850 million generated in new tax revenues since July 2020. Tax Inspectors Without Borders (TIWB) provides practical, hands-on assistance to developing countries in order to build capacity in the areas of international tax audit, criminal tax investigations and effective use of automatically exchanged information. Today, more than 100 experts have been deployed to work directly with tax administrations having requested assistance on real life cases covering international taxation matters. Six years on, TIWB assistance has helped collect USD 1.4 billion additional tax revenue for developing countries, and USD 3.9 billion in tax assessed, through June 2021, according to its latest Annual Report.
International organizations, vaccine manufacturers take stock of COVID-19 vaccine rollout, share views for 2022 (World Bank)
The heads of the International Monetary Fund, World Bank Group, World Health Organization and World Trade Organization held on 9 November the 2nd High-Level Consultations with the CEOs of leading COVID-19 vaccine manufacturing companies.
During the consultations, the heads of the four organizations and the CEOs also examined how best to tackle trade-related bottlenecks; how to improve the donation process; what additional steps are needed to reach the vaccination target of 40% of people in all countries by the end of the year; and how to improve transparency and data sharing with the IMF-WHO Vaccine Supply Forecast Dashboard and the Multilateral Leaders Task Force, requiring close collaboration between manufacturers, governments and COVAX on enhanced visibility of delivery schedules, especially for donated doses.
The outlook for 2022 was also discussed, focusing on diversification of manufacturing across regions, as well as strengthening collaboration to achieve the global target of vaccinating 70% of the populations of all countries by the middle of the year.
Privacy-focused startups see boon in big tech’s troubles (Thomson Reuters Foundation)
The leaks and controversies plaguing tech giants are driving users towards privacy-focused startups that are bidding to shake up the online market with a little help from regulators, company executives and digital rights experts say.
“Tech companies are making our job easier,” said Andy Yen, chief executive of Proton, a Swiss-based company that calls itself the world’s largest secure email provider, using end-to-end encryption and sophisticated security features. “This pursuit of higher and higher profits at the expense of users is driving people to seek alternative products and services with values that are more aligned with their own,” he told the Thomson Reuters Foundation.
3 Ways To Accelerate A Digital-Led Recovery (Forbes)
The Covid-19 pandemic has accelerated digital finance platforms as the primary tool for executing transactions. As such, ensuring all consumers and small businesses have access to vital technology has become ever more important. A new white paper published by the World Economic Forum’s Global Future Council on Responsive Financial Systems shows three ways that we can harness innovation and shape public policy to enable financial inclusion. Financial technologies present new ways for banks and start-ups to deliver a greater variety of services that are tailored to their customers’ needs. Whilst we have seen examples of dramatic advances in financial inclusion in some markets, it is uneven and there is plenty to learn across the globe.
Diversification for enhanced food systems resilience (Nature)
Global change and an increasingly interconnecting society are inducing unprecedented hazards likely to prove disastrous for many of the world’s most vulnerable populations. Food systems are at the heart of this challenge and must become more resilient to ensure access to food while also providing livelihoods for a large share of the world’s poorest households. A resilient food system must be financially equitable (economic resilience), supportive of the entire community (social resilience) and it must minimize harmful impacts on the natural environment (ecological resilience). The United Nations Food Systems Summit 2021 designated resilience as one of its five Action Tracks. While reviewing this subject for the Summit, one central theme emerged – the importance of diversification.
Boost From BRICS: ‘Emerging’ Trading Partners Are Fair Deal For Impoverished Africa (Worldcrunch)
It is no longer necessary to state the importance of emerging countries for Africa. Using the most recent data about the African continent, the 2011 edition of the African Economic Outlook shows how in the space of a decade these countries went from marginal associates to Africa’s top trading partners. According to the website, at the start of the millennium these new partners weren’t members of the Western donors club, also known as the OECD’s (Organization for Economic Cooperation and Development) Development Center.
Africa’s top trading partners are China, India, Brazil, South Korea and Turkey, not only in terms of bilateral trade volume, but also because of the diversity of countries and sectors these emerging countries work with. Which trading partners are most efficient in helping African countries reach their development goals?
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Domestic trade news
“South Africa is a leader in eco-friendly tourism” (African Business)
Tourism has suffered a number of setbacks in the previous couple of years, with the impact of Covid and the near collapse of the national flag carrier. But do you sense there is some light at the end of the tunnel? We are seeing more signs of recovery and confidence in our markets as some key source markets are opening up to South Africa, with airline partners once again resuming routes to South Africa. Key source markets for South Africa, such as the rest of the African continent with USA, Germany, France, the Netherlands and the UAE, having already lifted their restrictions. We therefore expect international travel to pick up soon. We recently welcomed the announcement by the British government that South Africa has been removed from their red list.
RSA citrus exports to EU under threat (Fruitnet)
South African and European Union representatives are in intense discussions to alleviate the impact of a steep rise in reported Citrus Black Spot (CBS) and False Codling Moth (FCM) interceptions on citrus shipped to the EU. The South African industry is extremely concerned about the fallout from these interceptions, which comes at the end of a very difficult shipping season. The campaign was marked by delays because of the riots in some South African regions in July, inefficiencies in ports and the systems of the Transnet organisation being hacked with valuable information lost.
eon Joubert, Special CGA envoy, market access and EU matters, said it was clear that South Africa would find it hard to control those unprecedented challenges with its existing extensive CBS and FCM mitigation programme, which has cost growers billions of rand since it was introduced to comply with EU requirements. “We need to safeguard our exports to the EU,” he said. “It is clearly time for cool heads on both sides of the ocean. “Our growers will have to revisit their compliance programme and submit new proposals to the EU on how to deal with this kind of situation,” Jounert continued. “At the same the EU and its members have to understand that we have a proud record of responsible actions and that we have faced a really unusual year.
High Commissioner Stresses Exploiting Full Potential Of Pak-South Africa Bilateral Trade (UrduPoint)
South African High Commissioner to Pakistan M Madikiza Monday called upon the businesspeople to exploit full potential of bilateral trade between South Africa and Pakistan. Addressing a function at the Faisalabad Chamber of Commerce & Industry (FCCI) here, he said “our struggle to enhance business-to-business relations was stalled with the outbreak of Covid-19, but now efforts were under way to resume full-fledged business activities between the two countries. He appreciated the Look Africa policy of Pakistan and said that in this connection, joint commission was playing a pivotal role. He suggested short- and long-term strategies to bring the youth of both countries closer to each other. “It will further enhance our bilateral trade on a sustained basis,” he added.
Kenya, DRC launch trade mission to boost bilateral trade (Kenya News Agency)
Kenya and Democratic Republic of Congo (DRC) in partnership with Equity Group have come together to organise and facilitate a 15-day Trade Mission to DRC from November 29 to December 13 as part of sustained efforts to promote regional trade and spur business growth. The Trade Mission, which expects to attract over 200 investors and business participants from Kenya, and a similar number from DRC as well as the public, will include trade exhibitions, business forums, and site visits in four of DRC’s largest cities – Kinshasa, Lubumbashi, Goma, and Mbuji Mayi.
KenGen’s plan to advance renewable energy in Kenya (ESI-Africa)
Kenya Electricity Generating Company (KenGen) is accelerating the deployment of renewable energy in Kenya to combat the adverse effects of climate change.
Speaking during the Accelerating Clean Technology Innovation and Deployment panel discussion at the COP26 World Leaders Summit in Glasgow, Scotland, Managing Director and CEO of KenGen, Rebecca Miano said the company is committed to the fight against climate change and is supporting the Government of Kenya’s ambition to achieve 100% utilisation of renewable energy by 2030.
“Our future project pipeline, which is mostly green, includes geothermal, wind, solar and some hydro. The projects will be implemented in phases with the first expected to be commissioned by end of this year,” said Miano.
Zambia revenue agency starts implementing new tax refund mechanism (CGTN Africa)
Zambia’s revenue agency on Monday said it has started implementing a new mechanism aimed at refunding firms Value Added Tax (VAT) in a more accountable, transparent, and predictable way. Topsy Sikalinda, Zambia Revenue Authority (ZRA) Corporate Communications Manager said the new mechanism was aimed at stimulating the growth of the business sector especially the small and medium scale enterprises following complaints of the slow refund process in the past.
Set up more industrial parks in Zanzibar to boost exports to the AfCFTA (EABC)
Mr. Ali Amour, Chairman, Zanzibar National Chambers of Commerce (ZNCC), Mrs. Maureen Mba, Head Mansa Business, Afreximbank joined by Mr. Hamad Hamad, Executive Director of ZNCC, Ms. Farida Mukasa Kasujja, Manager Client Relations East Africa Afreximbank and Mr. Adrian Njau, EABC Trade & Policy Advisor officially launched the African Due Diligence Platform in Zanzibar. The Chief Guest, Mr. Ali Amour, Chairman, Zanzibar National Chambers of Commerce (ZNCC) said “the AfCFTA is landmark Agreement by Africa, for Africa and Africans”
He emphasized the beginning point of trading is establishing trust between buyers and sellers, financiers and borrowers, the public and private sectors.
He stated that the EAC bloc should boost the industrial productive capacity and urged for more industrial parks to be established in Zanzibar to boost exports to the African Continental Free Trade Area (AfCFTA).
Tanzania: Country Strategy Paper 2021-2025 (AfDB)
This report presents the Bank Group’s Country Strategy Paper (CSP) for Tanzania 2021-2025 based on the aid effectiveness principles of ownership, alignment, harmonization, managing for results and mutual accountability. The CSP is aligned with the Tanzania Development Vision 2025 (TDV-2025) as well as with the strategic priorities set out in the respective Five-Year Development Plans (FYDPs) for Tanzania mainland and for the semi-autonomous islands of Zanzibar.
Manufacturers’ unrelenting drive for industrialisation, competitiveness (The Nation)
The push to rejuvenate the manufacturing sector and leverage it to force Nigeria’s industrialisation and global competitiveness is gathering momentum. And on the driver’s seat of the galvanised effort to reset the sector and, ultimately, make it the economy’s mainstay is the Manufacturers Association of Nigeria (MAN). At the behest of MAN, a three-day event organised in Abuja as part of activities to mark its 50th anniversary brought together experts and technocrats from diverse sectors to examine issues holding the sector down and articulate policy suggestions to change the sector’s narrative.
Nigeria Records $10.1bn Investment Announcement (Economic Confidential)
The Federal Government at the weekend said the economy recorded $10.1billiom investment announcement in the first half of this year. The Minister of Trade and Industry, Otunba Adeniyi Adebayo, who spoke at Lagos International Trade Fair, held at the Tafawa Balewa Square, organised by the Lagos Chamber of Commerce and Industry (LCCI), said the $10.1billion announcement was a-100 per cent increase over that of last year. He said: “The year 2020 was challenging for all economies but Nigeria is coming back strong. In the first half of this year, investment announcement was $10.1 billion. And increase of 100 per cent of the year 2020. Investors from Europe, China, Morocco and the United Kingdom are making strong commitments and this administration is working tirelessly to ensure these commitments turn into projects that positively affect our nation.
To push our trade activities and prospects, we must support locally manufactured goods. He said trade plays a significant role in the economic growth of a nation intent on building wealth and improving its foreign reserves position. “Trade is central to ending poverty, raising peoples’ standards of living, accelerating economic growth and improving productivity. It is a key driver of GDP growth, and, of course, employment creation,” Adebayo said.
IMF Staff Completes 2021 Article IV Mission to the Republic of Malawi (IMF)
Malawi’s economy has been severely affected by the pandemic and debt burden. While the daily COVID-19 positive cases remain relatively low, recovery is gradual. Real GDP growth is projected to pick up to 2.2 percent in 2021 from 0.9 percent in 2020, helped by a good harvest.
Substantial development and social spending needs, a high debt burden from the past, and limited budget support financing are continuing to contribute to sustained fiscal and current account deficits.
Urgent needs are to address the humanitarian situation, strengthen public sector governance, restore debt sustainability, and rebuild fiscal and external buffers. Support from development partners will be critical.
Africa
Leveraging Private Sector Engagement for the Africa we Want (African Union)
To set Africa firmly on the path towards economic and social transformation, private sector engagement is crucial. The African Union, has throughout the years worked closely with the private sector to define the great contribution and significant role the private sector plays in driving the economic development Agenda of the continent. The private sector in Africa accounts for over 80 per cent of total production, two thirds of total investment, and three fourths of lending within the economy. The sector also provides jobs for about 90 per cent of the employed working-age population. Further, Small Medium Enterprise (SMEs) are the backbone of the African private sector accounting for over 90% of businesses in Africa and translating to 63% of employment in low-income countries while contributing to over 50% of the Gross Domestic Product (GDP) according to the UN Economic Commission for Africa.
Although trends in intra-African trade point toward progress, trade within Africa remains very low in proportion to total global trade, highlighting the need for enhanced intra-African trade. The tides however look promising with the launch of trading under the African Continental Free Trade Area (AFCFTA). The AFCFTA is expected to increase intra-African Trade by over 50 per cent, and will boost the continent’s GDP by more than $40 billion, and its exports by more than $55 billion. To promote private sector engagement, the African Union has implemented programmes that seek to form strategic partnerships with the private sector through Public-Private Partnership (PPP) engagements, including developing strategic partnerships with African Philanthropists to support the implementation of key development initiatives at a regional and continental levels. Within the various pathways of the PPP, the AU seeks a more efficient and coherent engagement in driving the implementation of Africa’s development framework, Agenda 2063. In so doing, the AU is not only acknowledging the vital role the sector plays as a key driver of sustainable and inclusive economic growth, but also as efforts to create an enabling and conducive environment for the private sector players to set up thriving businesses in the continent. The success of the private sector landscape positively feeds into its role as a catalyst for the continent’s industrial development and broader transformation.
AfCFTA: Bridging fault lines in African transport policy (New Telegraph)
ACFTA and the Single African Air Transport Market (SAATM) still have a long way to go for effective implementation as the AU needs some institutional reforms to ensure that this plausible paper initiative becomes a reality.
The African Union is gradually making great strides towards achieving and making sense of the wisdom behind this famous adage in its efforts to liberate Africa from colonial demarcations. Apart from the physical barriers put in place by Africa’s colonisers, there are other intangible barriers, which have been existing and still continue to be great hindrance to Africa’s emergence if not brought down. The African Union’s recent actions of putting in place an African Continental Free Trade Area – AfCFTA and the Single African Air Transport Market – SAATM are giant steps towards recognising the over 1.3 billion inhabitants in the continent as one people, one market, one geographical space and one nation, provided Africans see and reason in this together.
Address barriers to unlock AfCFTA benefits for SMEs (The Citizen)
Members of the business community yesterday warned that the benefits of the African Continental Free Trade Area (AfCFTA) will not materialise unless some pending trade barriers were addressed. The impediments to trade include lack of harmonisation of standards, failure to sign the implementation of the Single African Air Transport Market (SAATM) and the export of raw commodities. The list also includes visa and work permit requirements, multiple testing agencies, unnecessary roadblocks and random checks along transport corridors/roads and high cost of cross-border trade that may represent barriers to Micro, Small and Medium Enterprises (MSMEs). The East African Business Council (EABC) trade and policy advisor, Mr Adrian Njau, said for AfCFTA to be successful, countries must address more non-tariff barriers and build regional value chains.
Adesina, Okonjo-Iweala, lament Africa’s handicap in crisis response (BusinessAMLive)
Africa’s global citizens: Akinwumi Adesina, president of African Development Bank (AfDB); Ngozi Okonjo-Iweala, director-general of World Trade Organisation (WTO), and Vera Songwe, UN under-secretary-general and executive secretary of UN Economic Commission for Africa (UN-ECA); and Ibrahim Assane Mayaki, chief executive officer of New Partnership for Africa’s Development (NEPAD), have raised a joint lamentation for the continent with respect to its response capacity to the climate change vagaries and Covid-19 health emergency.
The African global citizens saw disparity evident in efforts for Africa to address the climate crisis as well as the unequal nature of the global response to the Covid-19 pandemic. Africa is sorely treated with apparent scant by the Global North.
Whereas Western economies have mustered over $10 trillion, or 30 percent of their combined GDP to respond to the Covid-19 pandemic, African countries have managed to spend the equivalent of one percent of their GDP to tackle the ravaging virus.
The plan rests on four pillars: first, developed economies must keep the promise they made in the 2015 Paris climate agreement to deliver $100 billion per year to help cover developing countries’ adaptation and transition costs.
The second pillar is to align financial markets with the Paris agreement’s goals; insisting that “mainstreaming the impact of climate change in investment decisions is critical, and judicious deployment of private capital in green sectors will transform African countries and developing economies in general”.
The third proposed pillar by the threesome, is to provide the significant resources Africa needs to enable its economies to adapt to global warming. Climate change is costing the continent $7 billion – $15 billion annually and threatens both food security and the use of hydropower. But sub-Saharan Africa, which accounts for less than 4 percent of global GHG emissions, receives just 5 percent of total climate finance outside the OECD.
They have called on the newly formed African Continental Free Trade Area (AfCFTA) to provide an impetus for hardwiring commitment to low-carbon development. We must recognize Africa’s specific needs, acknowledge the continent’s vulnerability to climate change, and identify the regions and communities where its consequences have caused the most harm.
EAC and WCO furthering cooperation in core areas of Customs work (WCO)
From 25 to 29 October 2021, the East African Community (EAC) convened a meeting of its Sectoral Committee on Customs to discuss a wide range of issues related to Customs and trade policies. The meeting was held at the EAC Secretariat Headquarters in Arusha, Tanzania, and was attended by all the six EAC Partner States. In the framework of the ongoing cooperation between the EAC and the EU-WCO Programme for Harmonized System in Africa (HS-Africa Programme), the EAC invited representatives of the Programme to join the meeting.
During the first three days of the meeting, senior officials from the EAC Customs administrations gathered to examine technical aspects of the issues included in the agenda. Of particular importance were discussions related to the preparation of the new version of the Common External Tariff (CET), digitalization projects such as an electronic tariff platform and a duty remission scheme management system, as well as implementation of advance ruling programmes, capacity building activities and other modernization initiatives. Outcomes of the meeting were subsequently presented to Commissioners General of Customs who convened during the last two days to examine and approve the report by the senior officials.
There is a need for a strong and mutually beneficial cooperation with partners that share the Southern African Development Community’s (SADC) vision of a prosperous, peaceful and stable Region, envisioned in the SADC Vision 2050 and implemented through the Regional Indicative Strategic Development Plan (RISDP 2020-2030), the SADC Executive Secretary, His Excellency Mr Elias Magosi, has underscored.
In his discussion with the Egypt Ambassador, H.E. Magosi underscored the need to accelerate Africa’s economic integration to facilitate movement of people, goods and services through the implementation of the Africa Continental Free Trade Area (AfCFTA) to enhance economic integration and increase intra-African trade. The Ambassador expressed interest in exploring the opportunity of strengthening cooperation with the SADC Region, among others, through the expected Cape to Cairo Road or Pan-African Highway project which is expected to achieve land connectivity and increase trade exchange with African countries.
COMESA Competition Commission Unveils Draft Guidelines (Business Post Nigeria)
The COMESA Competition Commission published draft guidelines to the COMESA Competition Regulations, 2004 (Regulations) for public comment on October 19, 2021. The guidelines aim to provide clarity on the commission’s policies and procedures and to foster transparency and certainty in the administration and enforcement of the Regulations. These draft guidelines are based on international best practices and policy approaches of key regulators, including the European Commission. They address three fundamental areas of regulatory enforcement – the determination of fines and administrative penalties, settlement procedures and hearing procedures.
ECOWAS holds its 6th Meeting of Ministers of Finance (ECOWAS)
ECOWAS Ministers of Finance are expected to converge in the city of Accra- Ghana Friday, 12th November, 2021 to examine and approve the various Supplementary Act and the Regulations as recommended by the experts and Directors General of Customs for submission to the Council of Ministers in December 2021. This acts are meant to enhance the fluidity of intra-community trade and strengthen the Customs union across the region.
With the implementation of the ECOWAS Common External Tariff (CET) on 1st January 2015 in member states following the Declaration of the Authority of Heads of State and Government at its 46th Ordinary Session held in Abuja on 15th of December, 2014, this marked an important milestone in the establishment of a Customs union in the ECOWAS region. This is in consonance with the provisions of Article 3 of the Revised ECOWAS Treaty on the establishment of a common market in the Community. With the implementation of the CET in 14 ECOWAS member states and Mauritania and the advent of the African continental Free Trade agreement (AfCFTA) the need to reform other equally important trade facilitation and Customs instruments to make the ECOWAS region a strong and economically competitive community has become imperative. These trade and customs instruments relate to the regulation and automation of transit procedure in member states and the reforms and management of intra-community trade in “made-in-ECOWAS” goods among others.
Africa Finance Corporation onboards all West African countries as members (AFC)
Africa Finance Corporation (AFC) is delighted to welcome the Republic of Niger as its 33rd member state, which takes our membership of African countries up to 60%.
“It is my pleasure to welcome the Republic of Niger as a member of AFC”, said Samaila Zubairu, President & CEO of AFC. “The membership of Niger is a significant milestone as it completes the membership of all countries in West Africa. This will be an important contributor to integrating AFC’s activities in the region and making headway in the intra-Africa trade and logistics system. AFC will continue to bring its wealth of experience and technical expertise to deliver critical infrastructure required to support the development and industrialization of the country especially in these challenging times”.
DP World Launches E-Commerce Platform DUBUY.com in Kenya (Government of Dubai)
Trade enabler, DP World, today announces the launch of its global wholesale e-commerce platform DUBUY.com in Kenya. This latest expansion of DUBUY.com follows its successful launch in Rwanda earlier this year, where the platform has become a major gateway for trade in the East Africa region. DUBUY.com is an innovative online marketplace that will help unlock access to global markets for Kenyan businesses, with fulfilment through DP World’s worldwide ports and logistics network. With eight existing terminals on the African continent and three more in development, DP World is creating a strategic trading gateway into East Africa.
Whether looking to trade internationally, regionally or within the domestic market, the combination of DUBUY.com’s advanced technology and DP World’s physical infrastructure offers a secure and reliable way for organisations in Kenya to develop, expand and crucially, improve supply chain connectivity and resilience as the country recover from the COVID-19 pandemic. It will also solve some of the key challenges facing the growth of e-commerce in Africa, including reliable fulfilment, secure financial transactions and the movement of goods.
IFC Partners with Liquid Intelligent Technologies to Boost Africa’s Digital Infrastructure (IFC)
To support universal and affordable broadband access in Africa, IFC has partnered with Liquid Intelligent Technologies to expand data center capacity and the rollout of fiber-optic cable on the continent. The partnership with Liquid Intelligent Technologies, Africa’s leading independent fiber and digital services provider, aims to increase digital connectivity and inclusion in Africa and to support the region’s growing digital ecosystem.
“Digital technologies are rapidly transforming how people, businesses, and governments communicate, transact, and access information and services. By working with Liquid Intelligent Technologies, we can help expand access to infrastructure and digital services that power Africa’s digital economy, creating new opportunities for growth and jobs. This is an essential element for Africa’s economic transformation and building back better,” said Makhtar Diop, IFC’s Managing Director.
West Africa: Mango interceptions reduced by 57% at EU borders (FreshPlaza.com)
The project to support the regional plan to manage and control fruit flies in West Africa (PLMF) has helped reduce by 57% the interceptions of mangos at the European borders, according to Salifou Ousseini, executive director of the ECOWAS Regional Agency for Food and Agriculture (ARAA). The PLMF also contributed to increasing by more than 40% the mango exports from the ECOWAS region, as indicated by Salifou Ousseini during an annual regional workshop to assess and program the project “Innovative Regional Fruit Fly Management System in West Africa” (SyRIMAO). “After four years of effective implementation between 2015 and 2019, this project has achieved very significant results, especially with the reduction by 57% of mango interceptions at the EU borders and the increase of more than 40% of mango exports from the ECOWAS region.”
Treaty for the establishment of the African Medicines Agency (AMA) enters into force (African Union)
The Treaty for the Establishment of the African Medicines Agency (AMA) entered into force as of 5th November 2021, thirty (30) days after the deposit of the 15th instrument of ratification, on the 5th of October 2021, by the Republic of Cameroon at the African Union Commission (Article 38, AMA Treaty). “The African Union Commission celebrates and welcomes this great milestone that opens a new chapter for harmonization and regulation of the African pharmaceutical landscape, across the continent and the efforts to improve weak regulatory systems,” said H.E. Amira Elfadil Mohammed, Commissioner for Health, Humanitarian Affairs and Social Development, who has been leading advocacy efforts towards the establishment of AMA.
To date, seventeen (17) member states of the African Union (Algeria, Benin, Burkina Faso, Cameroon, Chad, Gabon, Ghana, Guinea, Mali, Mauritius, Namibia, Niger, Rwanda, Seychelles, Sierra Leone, Tunisia and Zimbabwe) have ratified the Treaty for the Establishment of the African Medicines Agency and deposited the legal instrument of ratification to the Commission.
COP 26 updates
CoP26: Contradictions dominate first Glasgow draft, fossil fuel cut not considered (Down to Earth Magazine)
Draft identifies global Net Zero as one of the possible elements for inclusion under Glasgow outcome; experts call it a bogus claim The presidency of the 26th session of the Conference of the Parties (CoP26) to the United Nations Framework Convention on Climate Change (UNFCCC) has identified global Net Zero as one of the “possible elements” for inclusion under Glasgow outcome, likely called Glasgow breakthroughs.
“The draft includes agendas raised by different parties, but it will be difficult to minimise the contradictions that are already there. It mentions the urgency to keep global temperature rise within 1.5°C, as well the goal of achieving Net Zero by 2050. We need to see which part of the wish list becomes operative in final agreed draft, if there is one, and which part remains in the body of the statement,” said a negotiation expert.
COP26: Article 6 hangs in balance as climate summit enters final week (S&P Global)
Negotiations over the rules governing international emissions trading remained in deadlock Nov. 8 as the UN Climate Change Conference in Glasgow entered its second and final week.
Article 6 of the Paris Agreement is one of the unresolved elements of the “rulebook” which will set out the terms of how governments can trade emissions reductions to help meet climate targets. “The Article 6 negotiations under the Subsidiary Body for Scientific and Technical Advice (SBSTA) came to an end on Saturday with Parties still divided on numerous issues,” the International Emissions Trading Association said in a note to members Nov. 7. The UK COP26 Presidency has asked SBSTA delegates to complete their work in time for cleaner versions of the draft text to be passed up to ministers on Nov. 8 when the Parties to the Paris Agreement reconvene, according to IETA. However, even a fresh version of the negotiating texts on the morning of Nov. 6 could not unlock entrenched positions, the group said.
CLIMATE CRISIS CONFERENCE: SA will not sign COP26 parallel pledge to move away from coal, says Environment Minister Creecy (Daily Maverick)
South Africa will not be signing the pledge to move away from coal that was established on the sidelines of the COP26 climate crisis negotiations under way in Glasgow, Scotland, the Forestry, Fisheries and the Environment Minister, Barbara Creecy said.
The minister told Daily Maverick in Glasgow that the country had not taken part in the pledge signed by 40 nations and institutions to end coal financing by the 2030s for major economies, and the 2040s for poorer nations. “South Africa has not signed the move away from coal pledge. Our position in negotiations is that any decisions need to be made in the process of formal negotiations through the convention. “And I think that we would be worried about situations where there’s an increase in tendency to set up platforms and pledges that are outside of the negotiation process. We think that it disadvantages developing countries,” Creecy said.
The African Union Commission (AUC) through the African Energy Commission (AFREC) hosted a high-level online side event at the COP26, held under the theme: “Opportunities and Challenges for African Energy Transition: What will it take for Africa to reach net-zero emissions’’? The meeting called for bold measures related to opportunities and challenges facing Africa, to accelerate actions towards the full implementation of the Paris Agreement and the UN Framework Convention on Climate Change.
In her keynote address, H.E. Dr Amani Abou-Zeid, Commissioner for Infrastructure and Energy at the African Union Commission underscored that it is in the best interest of Africa to join global efforts, to transition towards Net-Zero emissions, in order to mitigate future impacts of climate change on the continent and also reduce the costs of adaptation. ‘‘The availability of abundant renewable energy resources on the continent such as hydropower, solar, wind, geothermal and bio-energy can transform Africa’s energy sector to modern and sustainable energy through both grid and off-grid systems. These resources offer opportunities to accelerate clean energy access on the continent through energy transition and especially factoring natural gas as an energy transition fuel for power and clean cooking’’, She stressed.
Africa embraces gas in energy transition debate amid fears of secure supplies (S&P Global)
African countries will rely heavily on fossils fuels like natural gas in the energy transition amid fears that security of energy supply may be threatened amid lackluster financing and pressure from developing countries to fast-track their transformation, energy ministers said at a conference in Dubai on Nov. 8.
“When we say energy transition it does not exactly apply to Africa,” Amani Abou-Zeid, commissioner for infrastructure and energy of the African Union Commission, told the Africa Oil Week conference. “Our agenda is access to reliable and affordable energy.”
African countries want the global community and investors in particular to exploit their growing gas resources to be used as a transition fuel, ministers told Africa Oil Week. “In addition to working to reduce emissions, we need support of investors because we need to exploit gas and we need more financing for that,” Senegal’s Minister of Petroleum and Energies Aissatou Sophie Gladima said.
How to make global trade green without hurting developing nations (Business Standard)
Steel, cement and fertilisers are all major exports of developing countries, and their production is highly polluting. Should rich countries impose a carbon border tax to penalise emissions by these industries in developing countries, hopefully encouraging them to adopt greener technologies? Or will it merely
UN Unveils New Finance Mechanism to Boost Climate Action (Alliance for Hydromet Development)
On Finance Day at COP26, the World Meteorological Organization (WMO), the UN Development Programme (UNDP) and the UN Environment Programme (UNEP) announced the creation of the Systematic Observations Finance Facility (SOFF). This new finance mechanism will set the foundation to boost climate action globally and will contribute to achieving one of the main goals of COP26 – to urgently scale-up climate finance to support developing countries’ adaptation and mitigation efforts. The SOFF was created to address the long-standing problem of missing weather and climate observations from Least Developed Countries and Small Island Developing States. It will strengthen the international response to climate change by filling the data gaps that limit our understanding of the climate. These gaps affect our capacity to predict and adapt to extreme weather events such as floods, droughts and heatwaves.
Financing a global climate plan (UNCTAD)
The jury is still out on whether world leaders are ready to turn words into actions at COP26. At stake is life as we’ve known it for millennia. The recent IPCC report is unequivocal. Many of the climatic changes we are seeing around us are irreversible. We can still avert the worst-case scenarios with ambitious and dedicated decarbonization measures, but more extreme weather events and persistent environmental stress are now inevitable. The bad news is that no country is really prepared. The pandemic could have been met with a coordinated global response, to preserve lives and livelihoods, but instead revealed the frailty of global governance. As a consequence, health systems are again under stress in several countries and economic recovery is pushing parts of the world further behind, threatening to preserve and intensify the deep divisions in our world and undermining resilience to future shocks. Far from building back better, this type of response ushers in a new normal of recuring and reinforcing health, environmental and economic crises.
The good news is that we still have time to change. The pandemic has been a brutal learning experience, but we can use it to build a different future. In the Trade and Development Report (TDR) 2021, UNCTAD calls for more effort on climate adaptation and a transformative approach based on scaling up public investment to adapt to existing and future threats and to leverage private investment towards sustainable development, green industrial policies to diversify economies and create good jobs, and a new vision of multilateral cooperation to empower that approach.
Counting carbon in the food export business (Trade for Development News)
Climate change is influencing the way consumers demand food. “Food miles” was an early expression of consumer power with farmers and campaigners in Europe and the US in the 2000s, promoting the idea that the distance a product travels from farm to the consumer contributes significantly to the overall carbon footprint of a food product. The concept caused alarm for exporters in developing countries who are situated great distances from their export markets. In 2007, Soil Association, a leading UK organic certifier, announced that it was considering banning the certification of organic products that were airfreighted into the UK. Research carried out at the time showed that several thousands of African families were at risk of losing income if obstacles were placed to these premium price markets. After a consultation, the certifier decided against the idea, recognizing the benefits of trade for small-scale farmers in developing countries.
COP26: Agricultural expansion drives almost 90 percent of global deforestation (FAO)
Agricultural expansion drives almost 90 percent of global deforestation – an impact much greater than previously thought, the Food and Agriculture Organization of the United Nations (FAO) said when releasing the first findings of its new Global Remote Sensing Survey today. Deforestation is the conversion of forest to other land uses, such as agriculture and infrastructure. Worldwide, more than half of forest loss is due to conversion of forest into cropland, whereas livestock grazing is responsible for almost 40 percent of forest loss, according to the new study. The new data also confirms an overall slowdown in global deforestation while warning that tropical rainforests, in particular, are under high pressure from agricultural expansion.
Climate action in agribusiness could reduce emissions by up to 7 per cent (FAO)
Targeted action in agriculture could have a massive impact on climate change, according to a joint brief by the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO) and the European Bank for Reconstruction and Development (EBRD) presented at the COP26 Climate Conference in Glasgow. The mitigation potential of crop and livestock activities, including soil carbon sequestration and better land management, is estimated at 3 to 7 percent of total anthropogenic emissions by 2030. The potential economic value of mitigating these emissions could amount to US$ 60 billion to US$ 360 billion, the two institutions say.
“Agriculture must become the focus of a global coalition for carbon neutrality and we need to support both mitigation and adaptation. We must enable smallholder farmers to adapt and to benefit economically through the provision of environmental services,” said Mohamed Manssouri, Director of FAO’s Investment Centre. “Now is the time to grasp this vital opportunity to reduce emissions and increase carbon sequestration, while restoring biodiversity, supporting health and nutrition and generating new business opportunities through food and land-use systems.”
The food supply chain is on course to overtake farming and land use as the largest contributor to greenhouse gases (GHGs) from the agri-food system in many countries, due to rapid growth driven by food processing, packaging, transport, retail, household consumption, waste disposal and the manufacturing of fertilizers, according to a new study led by the Food and Agriculture Organization of the United Nations (FAO). Factors unrelated to on-farm activities and land-use changes already account for more than half of the carbon dioxide emissions from agri-food systems in advanced regions and their share has more than doubled over the past three decades in developing countries.
360° Resilience: A Guide to Prepare the Caribbean for a New Generation of Shocks (World Bank)
Strengthening government efficiency, empowering households and businesses, and reducing future risks by improving spatial planning and natural coastal protection are some of the key recommendations to boost the Caribbean’s ability to bounce back from shocks according to a new World Bank flagship report. The report, 360° Resilience: A Guide to Prepare the Caribbean for a New Generation of Shocks, also concluded that the genuine progress of one of the world’s most natural hazard-prone regions in improving its resilience has so far often failed to produce inclusive economic growth.
International
India, S Africa ask EU to break deadlock on Covid drugs, vax (Times of India)
After weeks of impasse, India and South Africa have asked the European Union to come up with a solution to break the deadlock on a TRIPS waiver for Covid drugs and vaccines, instead of merely blocking the proposal, aimed at ensuring people in the poor and developing countries are adequately protected from the pandemic.
Indian officials told TOI that EU has come to the negotiating table in recent weeks to engage on a possible way out with sources in Geneva indicating that the trading bloc may come around to agreeing to limiting the flexibility to patent waiver only for vaccines.
The India-South Africa proposal, which has now been backed by over 100 members of the World Trade Organization (WTO), seeks to provide patent, copyright and other IPR waivers for medical devices, therapeutics as well as vaccines.
WTO launches improved quantitative restrictions database (WTO)
In line with a 2012 Decision on notification procedures for quantitative restrictions, members inform the WTO of their trade prohibitions and restrictions on a biennial basis. Although QRs are generally prohibited under GATT Article XI:1, they may be allowed as exceptions in a limited number of circumstances. These include measures which are necessary to protect human, plant and animal health or to protect public morals, and measures relating to the conservation of exhaustible natural resources.
The improved database makes it easier for the user to access information contained in the QR notifications and also gives the possibility of generating charts directly through the platform.
Revised fisheries subsidies text kicks off intensified negotiations ahead of MC12 (WTO)
“The revisions I am putting forward are based on all our latest collective work, with all proposals, textual suggestions and discussions informing my thinking” the chair said. “The members’ call for me to produce this kind of a revision was to put us in as good a position as possible for the clause-by-clause discussion, such that we can have a very focused discussion during the short time left before MC12.”
4th CIIE to stimulate economic recovery of developing countries (CGTN)
Held as scheduled for four consecutive years, the China International Import Expo (CIIE) has become a window for observing the trend of China’s opening up. It fully embodies China’s consistent attitude of supporting the multilateral trading system and globalization, and vividly sends a positive signal to oppose protectionism and to maintain an open world economy. With the coronavirus continuing to spread, the world economic recovery has a bumpy road ahead. Restrictive measures and border closures triggered by the COVID-19 pandemic have had a catastrophic impact on global trade. In particular, many developing countries are facing more severe challenges than the developed due to their fragile economic structure, deep dependence on the export of primary products, and lack of resilience and vitality for economic recovery. In this context, the ongoing 4th CIIE not only demonstrates China’s determination to continue to open its market to the rest of the world, but also shows China’s goodwill gesture to share its achievements and provide equal opportunities for exhibitors from other developing countries to compete on the same stage with those from the developed world.
US finally reopening borders after 20 months (Eyewitness News)
The ban, imposed by former President Donald Trump in early 2020 and upheld by his successor Joe Biden, has been widely criticized and become emblematic of the upheavals caused by the pandemic.
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South Africa expo backs intra-continental trade (CAJ News Africa)
THE upcoming Intra-African Trade Fair (IATF2021) will offer South African companies a platform to broaden their client base domestically and internationally. The second edition of the expo is set for Durban on November 15-21. The government will support more than 80 South African companies to showcase their products and services at the trade fair.
The Department of Trade, Industry and Competition (DTIC) has granted support through its Export Marketing Investment Assistance (EMIA) Scheme whose objective is to develop export markets for South African products and services. It also aims to recruit new foreign direct investment into South Africa.
SA Investment Conference postponed to March 2022 (SABC News)
The fourth South Africa Investment Conference scheduled to take place this month has been postponed to March next year. President Cyril Ramaphosa announced this in his weekly letter to the nation on Monday. The delay is due to several other events under way at this time such as the COP26 climate conference, the Intra-Africa Trade conference kicking off in Ethekwini next week and the recently completed local government elections. Despite this, Ramaphosa says that the country’s ambitious investment drive continues, with companies making good on their earlier commitments and looking for other investment opportunities in the country.
FG Prepares New Trade Policy, Says Nigeria Recorded $10.1bn Investment Announcements by June 2021 (This Day)
The federal government has disclosed that it is set to update Nigeria’s trade policy in order to enhance the country’s access to regional markets in preparation for effective implementation of the African Continental Trade Agreement (AfCFTA). President Muhammadu Buhari disclosed this in Lagos while speaking at the opening ceremony of the 2021 Lagos International Trade Fair (LITF), which was orgainised by the Lagos Chamber of Commerce and Industry (LCCI). He also disclosed that Nigeria recorded $10.1 billion foreign investment announcements in the first half of 2021.
He said: “One of the major policy thrust we are deploying to drive the facilitation of trade and market access is the imminent revision of Nigeria’s trade policy. “Its revision will caption our current economic realities and our aspiration to further facilitate trade and access to markets both locally and regionally, especially in the advent of the implementation of the AfCFTA.”
Federal Govt Reiterates Commitment To Trade Facilitation (Leadership)
Minister of industry, trade and investment, Otunba Adeniyi Adebayo, has restated the federal government’s commitment to driving trade facilitation and market access. Adebayo, who represented President Muhammadu Buhari at the opening ceremony of the on-going 35th edition of the Lagos International Trade Fair (LITF) organised by the Lagos Chamber of Commerce and Industry (LCCI) in Lagos, added that, “we are deploying to drive the facilitation of trade and market access, which is the imminent revision of Nigeria’s trade policy. The revision would capture the country’s current economic realities.” “It would also consider the nation’s aspirations of further trade growth and access to markets both locally and regionally, especially in the advent of the implementation of the Africa Continental Free Trade Area (AfCFTA),” he stressed.
FG urges Nigerians to patronise local products (Daily Sun)
To boost trade and economic activities, the Federal Government has enjoined Nigerians to support locally manufactured goods. President Muhammadu Buhari, who made the remark at the opening ceremony of the 35th edition of the Lagos International Trade Fair at the weekend, organised by the Lagos Chamber of Commerce & Industry (LCCI ), noted it was in this regard that the government signed Executive Order 003 in 2017. He said several campaigns have been launched to create necessary awareness and momentum. Represented by the Minister of Industry Trade and Investment, Adeniyi Adebayo, the president also disclosed that the country’s investment announcements in the first half of the year at $10.1billion was a 100 percent increase compared to 2020.
Nigerian importers and exporters have decried the N9 million duty per truck imposed by Benin Republic Customs on transit goods passing through the country’s corridor. Daily Sun learnt that the situation forced some shippers to pay more to reroute the goods via Togo port to Nigeria following the government of the Republic of Benin decision to stop all Nigeria-bound trucks laden with transit goods coming from Cote D’ivoire, Ghana and Togo. However, shippers described the situation to be a revenge meausure over Nigeria’s closure of its borders in 2019, which lasted for more than one year. Presently, most local manufacturers in the food, beverage and tobacco sector are said to be short of raw materials.
AfCFTA poised to dramatically increase Nigeria’s exports (Afreximbank)
Nigeria has the most to gain from the growth in intra-African trade, heard the country’s business community on 18 October at a Lagos roadshow for the Intra-African Trade Fair (IATF2021). The event offered Nigerian audiences a taste of what is to come at the IATF2021, which will take place in Durban, KwaZulu-Natal, South Africa, from 15 to 21 November 2021.
The Lagos preview event showcased a range of topics and opportunities due to be addressed at IATF21, which Nigeria, sub-Saharan Africa’s largest economy and the continent’s most populous country, is poised to capitalise on. During a panel discussion on ‘Unlocking Regional Value Chains Through the Implementation of the African Continental Free Trade Area (AfCFTA)’, delegates familiarized themselves with the revolutionary Pan-African Payment and Settlement System (PAPSS); the advantages of harmonisation of standards in the automotive and pharmaceutical industries; and the potential for boosting the continent’s automobile manufacturing.
Pandemic stimulus not sufficient for Ugandan businesses (The East African)
Ugandan businesses are still low on funds even after the Ministry of Finance, Planning and Economic Development injected a stimulus package of Ush13,208 billion ($3.7 billion) into the economy to help them weather the economic impacts of Covid-19.As part of the stimulus package, private loans in commercial banks were restructured, development financer Uganda Development Bank (UDB) recapitalised to finance distressed companies, businesses directly benefited from tax rebates and deferrals and youth and women entrepreneurs got seed capital. However, businesses in Kampala The EastAfrican spoke to are still reporting a drop in cash flow and low foot traffic.
New export tax on gold costs Uganda $720m (The East African)
Uganda has lost an estimated $720 million in missed gold exports since July as exporters boycott a new tax. In July alone, the country did not export any gold for the first time in six years, and now the government is seeking to reverse the new tax that was announced this year. In April, the government imposed a levy of five percent on every kilogramme of refined gold and 10 percent on unprocessed gold for export. The new requirement became operational in July, forcing gold exporters to hold back stock to protest the tax. Gold has for three years now overtaken coffee to become Uganda’s leading export commodity earning an average of $180 million per month for the government in revenues.
According to sources at the Ministry of Energy and Minerals, the government has yielded to the demands of the gold exporters and a team of technocrats from the ministry, their finance counterparts and the sector players are now looking for a solution by before year end. At the same time, President Yoweri Museveni has issued a directive to the Finance ministry to stay the collection of the new levy pending the ongoing review of the new tax requirement. The president suggested that the exporters should be in the meantime allowed to sell their gold under the old tax law as the review goes on.
Tanzania, investors begin talks on gas production (The East African)
Negotiations between Tanzania and international oil companies on the stalled liquefied natural gas (LNG) project are set to start after teams from both sides met in Arusha last week. This follows President Samia Suluhu’s push for the project and finalised review of the Production Sharing Agreement (PSA) arrangements.
“The LNG investors have been notified of the meeting on November 8 by the government,” said Ola Morten Aanestad, spokesperson of International Upstream.
Tanzania Petroleum Development Corporation (TPDC) Project Manager Fedister Agrey confirmed the meeting saying the government had done the relevant preparations and planned to hold discussions with the investors this month. “Tanzania will invest in the project according to participation percentage that is described within the PSAs,” she said
Oil and gas companies say there is hope to hold and finalise talks over the $30 billion LNG project.
“We see a window of opportunity for the Tanzania LNG project, and the ability to move efficiently to complete the discussions will create value for all partners involved and Tanzania as a country,” said Aanestad.
Kenyan solar energy startup shines at AfCFTA awards (The East African)
Kenya’s Tekizo Africa Limited is among the companies that emerged top in the just concluded Africa Continental Free Trade Area (AfCFTA) Caravan Prize competition. The firm, which deals in the manufacture and distribution of solar freezers to small-scale fishermen, emerged as a runner up in the final competition results announced on Friday. Among the winners were Senegal’s Matontine offering digital financial services and Medics2You from Nigeria that incorporates technology in the provision of healthcare. Matontine bagged the grand prize, while Medics2You took home the commendation prize.
The AfCFTA Caravan Prize is aimed at boosting small and medium African enterprises through the provision of soft infrastructure that helps them expand beyond their home countries. The prize targets a select few of the Caravan Initiative-supported enterprises and offers them more intensive support and cash grants.
Digitalizing the coffee supply chain of women-owned businesses in Rwanda (ITC)
Coffee is central to Rwanda, being one of the country’s most important exports. The sector occupies 79.5% of the labour force, contributes one-third of GDP and generates more than 45% of the country’s export revenues. It is therefore key to overcoming the challenges of COVID-19 that has pushed many people back into poverty. The pandemic-induced lockdowns have demonstrated the importance of using digital channels to reach new markets and stay connected with existing customers. Moreover, as consumers increasingly lose trust in food value chains, buyers are under pressure to increase traceability and provide full transparency to consumers on where their goods are sourced. A new type of blockchain technology implemented by Farmer Connect facilitates the collection and validation of this information in the coffee supply chain, by capturing the coffee farmer’s transactions. The International Trade Centre recognizes the importance of blockchain technology for traceability as it offers greater transparency in the supply chain and increased visibility for women-owned small holder farmers to international buyers.
Africa
The AfCFTA – A Catalyst for Industrial Opportunities (Pumps Africa)
The African Continental Free Trade Area agreement (AfCFTA) will constitute the world’s largest free trade area, consolidating an integrated market of 1.3 billion consumers with a combined gross domestic product (GDP) of approximately $3.4 trillion. The objective is to realise a continent-wide single market for goods and services with free movement of business, persons and investments. The agreement will ultimately boost trade and industrialization across the continent, while addressing the negative impact of the COVID-19 pandemic. As such, the trade deal has been prioritised amongst continental policymakers and affiliates in support of the process.
The AfCFTA assures a virtuous cycle of opportunities for manufacturers and various other market players. With trade and investment stimulation, enhanced value addition and productivity growth, more and better jobs will be created through social inclusion, and consequently further enlarged markets. However, to realise the maximum possible benefits, African nations need to refine business legislation, invest in human capital, infrastructure, transport corridors and logistics and other necessary enablers, all while improving access to credit for export-oriented manufacturing entities. Furthermore, political leaders need to demonstrate commitment to ensuring that industrial policies are established and congruous at both national and regional levels.
Comprising a pivotal theme at this year’s Manufacturing Indaba conference is the AfCFTA’s immense potential to convert Africa into the next big manufacturing hub, eliminating global reliance on Chinese manufacturing and furthering global economic competition. The event provides a rare opportunity for African manufacturers and governments to observe and partake in thought-provoking debates to not only develop but maintain a sustainable and lucrative export sector in Africa.
African Development Bank and the AfCFTA Secretariat partner to stimulate industry (The News)
Dr. Akinwumi Adesina, right, meeting with African Continental Free Trade Area Secretary General, Wamkele Mene African Development Bank Group President, Dr. Akinwumi A. Adesina, said on Friday that the Bank would mainstream the African Continental Free Trade Area into its country and regional integration strategies. Receiving African Continental Free Trade Area (AfCTA) Secretary-General Wamkele Mene, in Abidjan on 29 October, Adesina said “the implementation of the free trade area will become a key component of the Bank’s lending program. We want to have a critical mass of AfCFTA-aligned investments.”
SADC Ministers of Trade approve extension of Trade Facilitation Programme (SADC)
The Committee of Ministers of Trade (CMT) of the Southern African Development Community (SADC) has approved the extension of the implementation of the Trade Facilitation Programme (TFP) for the period 2020-2030 in line with the revised Regional Indicative Strategic Development Plan (RISDP) and the implementation of category B and C of the World Trade Organisation Agreement on Trade Facilitation. The TFP was initially approved in March of 2016 to advance and consolidate the SADC Free Trade Area. The CMT, which met at the end of July 2021, urged SADC Member States to ensure that the activities contained in the TFP are mainstreamed into their national plans in order to support the implementation plans, industrialisation strategy, the regional integration agenda, and mobilistion of the resources.
The SADC TFP contains 28 activities under Transparency, Predictability, Simplification and Cooperation clusters. The programme is meant to support the consolidation of the SADC FTA in general and the implementation of the Industrialisation Strategy in particular.
Comesa trade supply chains remain constrained (Chronicle)
TRADE supply chains remain constrained within the Common Market for Eastern and Southern Africa (Comesa) region amid renewed calls for countries to ensure full implementation of the Covid-19 pandemic trade facilitation guidelines. Last year, on account of the adverse impact of the Covid-19 pandemic, a call was made within the Comesa region for the full implementation of guidelines that promote the movement of goods and services to facilitate regional trade. Speaking during the 42nd Comesa Inter-governmental Committee virtual meeting last week, Zambia Minister of Commerce, Trade and Industry Chipoka Mulenga said supply chains were still constrained and prices for inputs and consumables rising in member States.
“Our countries have now started to experience the negative impact of Covid-19 induced disruptions of supply chains and weakening demand levels in our trading partners as our trade volumes are showing marked declines,” he said.
SACU, EFTA continue negotiations on expanded Free Trade Agreement (Namibia Economist)
Senior officials and experts from the Southern African Customs Union (SACU) and the European Free Trade Association (EFTA) Member States met through videoconference on 3 and 4 November 2021 to continue their negotiations on an updated and expanded Free Trade Agreement. The delegations informed each other on domestic developments that happened since the last round, including the economic impact of the Covid-19 pandemic, and uneven recoveries. They exchanged views on the steps needed to move the review process forward and took stock of all issues outstanding under review in a constructive fashion showing their willingness to take the negotiations forward.
Countering Tax Avoidance in Sub-Saharan Africa’s Mining Sector (IMF Blog)
Sub-Saharan Africa is estimated to possess 30 percent of global mineral reserves, representing a major opportunity for the region. Despite the high level of private investment in this critical sector, new analysis finds that many multinational companies are avoiding paying their taxes. To get a sense of the scale of the investment that companies are making in the region’s mining sector consider the case of Guinea. One multinational company has invested five times more in a single bauxite mine (as a percent of GDP) than the government has spent in total public investment since 2018.
New IMF staff research shows that governments in sub-Saharan Africa—now under tremendous pressure to raise public spending in response to the pandemic—are losing between $450 and $730 million per year in corporate income tax revenues as the result of profit shifting by multinational companies in the mining sector. Targeted policy actions to reduce tax avoidance could help governments recover some of this badly needed tax revenue to aid with the recovery and meet Sustainable Development Goals.
ANALYSIS: How Africa can tap opportunities presented by COVID for economic growth (Premium Times Nigeria)
The coronavirus pandemic caught the world totally unprepared! From Asia to America, from Europe to Africa, the crowned virus ravaged lives and livelihoods. Its impact on world economies has been widespread and very deep. To combat the pandemic, governments all over the world deployed a cocktail of responses ranging from: lockdowns to creation of Isolation centres; mobilization of healthcare personnel and facilities; palliatives for the vulnerable in the society; stimulus packages for businesses; issuance of covid-19 protocols for all forms of social gathering; and guided vaccinations.
It is pertinent to note that the advent of covid-19 coincided with the period in which African political leaders choose to foster Africa’s economic integration through the African Continental Free Trade Area (AfCFTA). This would have laid a veritable foundation for a viable continental market that engenders long-term growth, develops commodity value chains and industries across borders. The potential for income and employment creation (and by extension poverty reduction) is equally largely acknowledged as one of the major benefits of AfCFTA. This initiative is laudable as it is poised to make Africa more competitive in global trade as trade is crucial to development. For a continent with weak growth statistics, AfCFTA is a welcome development and can be leveraged to deepen African countries’ integration into regional and global value chains. Although covid-19 interrupted the pace of the initiative, it still holds a lot of promise for the continent as it is a veritable tool for fastracking the process of economic recovery.
Group calls for realistic energy transition goals in Africa (Trade Arabia)
The Sahara Group has called for the adoption of an “Africa appropriate” transition agenda in the continent’s upstream sector Group Executive Director Moroti Adedoyin-Adeyinka has said the disparate development level in Africa needs to be considered when discussing how best the continent and its global partners should approach the desirable goal of energy transition. “We need to have realistic goals and milestones that will ultimately enhance energy transition in Africa in a manner that leaves no one behind. Sahara Group as a foremost promoter of access to energy and sustainable environments is delighted to join other African and global stakeholders to help shape a sustainable future for upstream business in Africa, she said.
According to her, a “responsible and cleaner” production and consumption of energy in Africa holds the key to unlocking economic prosperity on the continent.
The African Development Bank and partner institutions of the Africa NDC Hub have published a flagship report on the status of Nationally Determined Contributions (NDCs) in Africa and the imperative for climate finance innovation. The report provides key action points needed to bring African countries on course to meeting their commitments under the Paris climate agreement, including setting up system enablers to crowd-in private capital. The study presents a compelling narrative on the pathway to raising ambition through NDC implementation, mapping out climate finance flows for both mitigation and adaptation, and investment strategy options to accelerate NDC interventions.
SA ‘spearheading’ vaccine development in Africa – expert (The Citizen)
Dr Messeret Eshetu Shibeshi, an Immunisation Officer with the World Health Organisation (WHO), discussed South Africa’s response to the Covid-19 pandemic, specifically in terms of the vaccine rollout. She said Africa contributes to approximately 2.5% of the global cumulative cases, which as of 5 November 2021, stood at 249 million cases and 5 million deaths. Furthermore, 6.8 billion vaccine doses have been administered on a global scale, as of 31 October 2021. Out of the accumulated reported cases, South Africa reported “among the highest in Africa, close to 1.2%”, as reported to WHO, Dr Shibeshi said.
Why US Is Suspending Ethiopia, Mali, Guinea From Free-Trade Deal (VOA)
In response to human rights violations, the United States announced this week that it plans to suspend Ethiopia, Mali and Guinea from duty-free access to American markets as of January 1. U.S. President Joe Biden said in a statement to Congress, released Tuesday, that these nations were no longer in compliance with the eligibility requirements for the African Growth and Opportunity Act (AGOA). He cited various examples of their failure to defend internationally recognized human rights.
Given the benefits posed by the AGOA, suspension from the act may have important implications for each country’s economy.
A vote for establishment of African Medicines Agency – The Sun Nigeria (Daily Sun)
That Africa will soon establish a body that will be responsible for regulating medicines and medical products across the continent is a positive development. In February, 2019, the African Union adopted a treaty to set up the African Medicines Agency but, for take-off, it required 15 African countries to sign it and notify the AU commission before it could be established. And just the other day, Cameroon formally notified the AU that it had ratified the treaty bringing the number to the needed 15. It will now require a 30-day waiting period before the setting up of the agency can commence. So, by November 5, it can formally start.
AMA will be the second cross-continental African health agency, after the establishment of the Africa Centers for Disease Control and Prevention. It’s still a surprise that countries have been slow to be part of AMA because in 2019 when the decision was taken to establish it by the AU Assembly it was unanimous.
AMA will not take over the job of a country’s drug regulatory agency but will strengthen their capacity and bring harmony to the regulation of medicines across the continent.
International
Participants make headway in finalizing negotiations on services domestic regulation at MC12 (WTO)
A total of 65 WTO members reached a deal on 27 September on new disciplines for services domestic regulation that aim to facilitate services trade. The objective is to mitigate the unintended trade-restrictive effects of measures relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards. Improving the predictability and transparency of procedures that businesses have to follow for authorization to supply a service is the overarching aim of the new disciplines.
In the final stages of the negotiations, participating members are updating their schedules of commitments to reflect the new disciplines in their existing WTO services commitments. Several have added more service sectors to be covered by the new disciplines — such as environmental and business services — and all of them intend to apply the discipline on non-discrimination between men and women to their authorization procedures.
Members agree on recommendation to extend moratorium on IP “non-violation” cases (WTO)
Under the draft decision, the TRIPS Council would be asked to continue its discussions on this issue and to make recommendations to the 13th WTO Ministerial Conference. In the meantime, members would refrain from bringing such cases to the dispute settlement system. This so-called “moratorium” has been extended several times, from one Ministerial Conference to the next.
Scientists seeking MC12 agreement on fishing subsidies present letter to DG Okonjo-Iweala (WTO)
“Science has spoken: reaching an agreement on fisheries subsidies at MC12 would help protect the oceans and, in turn, uphold the long-term food security and livelihoods of millions of people,” DG Okonjo-Iweala said after receiving the letter addressed to the full WTO membership. “This letter is a strong reminder to WTO members of why they are in these negotiations, and what the consequences will be if they do not reach an agreement. The message to our political leaders is clear: they have already committed to concluding these negotiations in Sustainable Development Goal 14.6. They must not delay any further.”
LLDC ministers adopt declaration on trade-related priorities in run-up to MC12 (WTO)
The declaration calls for discussions on establishing a work programme for LLDCs in the WTO to monitor their needs, challenges and vulnerabilities and to develop strategies to boost their participation in the multilateral trading system. In addition to the challenges of high trade costs and dependence on transit countries to trade internationally, LLDCs are facing new challenges, such as container shortages, high shipping costs, climate change vulnerability and limited access to COVID-19 vaccines, the declaration notes.
Climate change could cause 64% GDP hit to world’s vulnerable countries (Christian Aid)
A study commissioned by Christian Aid highlights the devastating economic impact climate change will inflict on the world’s most vulnerable countries.
As delegates at COP26 in Glasgow mark ‘loss and damage day’, the new report lays out the grim economic future some of the poorest countries will face, underlining the need for a robust system for dealing with loss and damage and much greater action to reduce emissions.
The report, Lost and Damaged: A study of the economic impact of climate change on vulnerable countries, was coordinated by Marina Andrijevic, an economist at Humboldt University in Berlin. By 2050 and 2100 the economies of these countries are still expected to be higher than they are today. This study highlights the amount of damage caused to their GDP by climate change, compared to a scenario where climate change didn’t take place.
By accelerating digitalization, COVID-19 appears to have boosted trade in information and communication technology (ICT) goods, which had declined before the pandemic, according to an UNCTAD technical note on the pandemic’s impact on trade in the digital economy, published on 21 October. Against a backdrop of sharply declining merchandise trade, the share of ICT goods in merchandise imports surged from around 13% in 2019 to nearly 16% in 2020 – the greatest annual increase since records began in 2000. “The pandemic has made affordable ICT goods imports even more important for countries at early stages of the digital transformation – the same countries that saw the biggest falls in ICT goods imports in 2020,” said Shamika N. Sirimanne, UNCTAD director of technology and logistics. “In this context, adopting trade facilitation and customs automation measures to smooth import processes will be important to improve access to the equipment needed in the digital economy.”
COP26: ‘Borrowed to our eyeballs’ and facing ‘debt traps’ - poor countries call for more help with climate finance (Yahoo News)
Poor countries have “borrowed to our eyeballs” and must be granted more cash to cope with the climate change ruining lives and livelihoods around the world, a representative of 46 developing nations has told Sky News. Sonam P Wangdi, chair of the Least Developed Countries (LDC) group at UN climate talks, said around 70% of the money poor countries receive to tackle climate change is in the form of loans they “can’t afford”, sending many into “debt traps”. Speaking of the high proportion of loans, he said: “That is totally a no. It must be grants and then access must be ensured.” “It is ridiculous” that it can take three years to access money due to bureaucracy and delays - whereas they need it in less than a year, he added.
It comes as negotiators at the Glasgow climate talks COP26 prepare to discuss today two highly sensitive issues for developing nations: funding for adaptation and for loss and damage. The former helps poor countries cope with the impacts of climate change, for example an extreme weather warning system, and the latter covers damage from climate change, such as displacement or death.
Money for something - financing a global climate plan (UNCTAD)
The jury is still out on whether world leaders are ready to turn words into actions at COP26. At stake is life as we’ve known it for millennia. The recent IPCC report is unequivocal. Many of the climatic changes we are seeing around us are irreversible. We can still avert the worst-case scenarios with ambitious and dedicated decarbonization measures, but more extreme weather events and persistent environmental stress are now inevitable. The bad news is that no country is really prepared. The pandemic could have been met with a coordinated global response, to preserve lives and livelihoods, but instead revealed the frailty of global governance. As a consequence, health systems are again under stress in several countries and economic recovery is pushing parts of the world further behind, threatening to preserve and intensify the deep divisions in our world and undermining resilience to future shocks. Far from building back better, this type of response ushers in a new normal of recuring and reinforcing health, environmental and economic crises. The good news is that we still have time to change. The pandemic has been a brutal learning experience, but we can use it to build a different future. In the Trade and Development Report (TDR) 2021, UNCTAD calls for more effort on climate adaptation and a transformative approach based on scaling up public investment to adapt to existing and future threats and to leverage private investment towards sustainable development, green industrial policies to diversify economies and create good jobs, and a new vision of multilateral cooperation to empower that approach.
International Trade Centre & Alibaba.com join forces to support MSMEs in developing countries to succeed online (Yahoo Finance)
International Trade Centre (ITC) has partnered with Alibaba.com to launch the “Global Digital Trade Accelerator for MSMEs in Developing Countries” initiative on 6th Nov during the ongoing 2021 China International Import Expo (CIIE) in Shanghai, China.
Together, the parties will help Micro, Small and Medium Businesses (MSMEs) enhance their international export competitiveness and contribute to sustainable development by better utilizing eCommerce platform opportunities.
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SA Companies to Participate at Intra-African Trade Fair 2021 (the dtic)
More than 80 South African companies, supported by government, will have an opportunity to showcase their products and services at the Intra African Trade Fair 2021 (IATF2021) that will take place at the Inkosi Albert Luthuli International Convention Centre, in Durban, KwaZulu-Natal from 15-21 November 2021. The Intra-African Trade Fair is a trade show that provides a platform for linking international buyer, sellers and investors as well as allowing for participants and visitors to profile and share market information and investment opportunities in support of intra-African trade and the economic integration of the continent.
“The trade fair will offer us an opportunity to profile and market proudly South African goods and services, build lasting networks and establish collaborations that will increase South Africa’s goods and services exports into the continent and position South Africa as the partner of choice. It will further highlight the best of South African local manufacturing capability in the agriculture and agro-processing; automotive; construction and infrastructure development; consumer goods; energy and power; engineering; footwear; leather and textiles; heavy Industries and light manufacturing; health care and pharmaceuticals; Information and Communication Technology and Innovation; logistics; and mining sectors,” says Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina.
Zimbabwe’s High-Risk Cross-Border Trade (Inter Press Service)
COVID-19 lockdowns and restrictions meant that many informal sector traders lost their jobs. Not eligible for compensation, some have turned to sex work.
Thirty-six-year-old Thandiwe Mtshali* watched helplessly as her informal cross-border trading (ICBT) enterprise came to a grinding halt when the Zimbabwean authorities closed the border with South Africa as part of global efforts to stem the spread of the deadly novel coronavirus. “That was last year, and I had no idea what to do next,” Mtshali told IPS. Before the lockdown, she made up to four trips each month to Musina and Johannesburg in neighbouring South Africa to buy goods ranging from clothes to electrical appliances for resale in Bulawayo, Zimbabwe’s second city. And by her account, the money was good.
After months of being idle in Bulawayo, a colleague tipped her about what appeared to be an easy route out of her money troubles: truckers had not been banned from transporting goods between South Africa and Zimbabwe. As truckers got stuck at the Beitbridge border post for weeks waiting to get their consignments processed by port authorities, it presented a new venture for informal cross-border traders such as Mtshali: sex work.
Cost of imports to increase as shilling hits new low (Nation)
The Kenyan shilling continued weakening on Monday against major currencies, hitting its lowest point this year yesterday in the latest nightmare for the economy. Official data from the Central Bank of Kenya (CBK) shows that the local currency exchanged at a mean of Sh110.16 for each US dollar, in what promises to make imports more expensive in coming days. Kenya is a net importer and a depreciation of the shilling has a net effect of increasing the prices of goods, including electricity and fuel.
Apart from imports costs shooting up, a weaker shilling has a direct impact on Kenya’s foreign-denominated loans given that the country pays a huge chunk of its loans in dollars.
Kenya bans avocado exports on immature crop harvests (Business Daily)
The horticulture regulator has banned exports of Kenya’s popular avocado varieties to curb harvesting of immature crop. Head of Horticulture Directorate Benjamin Tito says the ban on Fuerte and Hass varieties will be effected on November 15 with exceptions given to exporters who have the Jumbo type and those having off-season crop.
Mr Tito said exporters with the Jumbo variety, who are still allowed to ship out, will only do it by air and not sea with the size expected to be at least 184 grammes for a single fruit.
The review on when the ban will be lifted will be conducted on January 15 next year to ascertain the status of the crop. The move by the regulator is aimed at curbing harvesting of immature crop following rampant cases of traders picking young crops previously to capitalise on high prices of the commodity at the international market.
Kenyan banks eye 1.3 billion–person Africa market (The Star)
Kenyan banks are seeking a pie of the continental market by riding on the African Continental Free Trade Area(AfCFTA), sector lobby group has said. There is an already ongoing expansion of Kenyan financial institutions into the East African region and linkages with leading financial institutions in the South, West and Northern Africa. According to the Kenya Bankers Association (KBA), Kenyan lenders are ready to finance trade activities as the continental trade deal takes shape, as more countries continue to ratify and adopt it.
Tanzania unleashes maritime potential (The Citizen)
Navigation towards exploiting Tanzania’s advantage as the most strategic gateway to eastern and central Africa has been slow. It has been sailing through surely and steadily, though, as a panamax vessel sails towards the entrance of the Dar es Salaam port in a warm evening. The decades-long cries of concerns and calls of “something should be done” made many blind to the progress being made to realize Tanzania’s potential as a maritime country. A number of plans and strategies that were initiated, as stipulated in various government documents, and various projects are taking shape and eventually unfolding to position the country as the main gateway in the region. Tanzania wants its ports to handle 84 million tonnes of freight per annum by 2026, according to its 2015-2021 five year plan. This is an ambitious goal with the current implementation of the projects. There would be no wind strong enough to prevent the country from reaching there.
In setting such ambitious goals the government is acutely conscious of Tanzania’s strategic geographic location. “Having direct access to the Indian Ocean with a long coastline (about 1,424km) and located at the centre of the east coast of the African continent, Tanzania has the potential to become the least-cost trade and logistics facilitation hub of the Great Lakes Region as it links up with global markets,” reads part of the 2015-2021 Five-Year Plan.
Making Tanzania aviation competitive (The Citizen)
Tanzania’s aviation sector can’t find its wings even as the truth is once it takes off only the sky will be the limit. Tanzania’s aviation sector has been tied to the same challenges since the collapse of the East African Community in 1977.Up till then the sector was under the auspices of the EAC, starting with the East African Common Services organization and then the East African Directorate of Civil Aviation. The three countries--Tanzania, Kenya and Uganda--also formed and jointly ran the East African Airways. The directorate had an oversight role on civil aviation technical activities and air transport economic issues including market access matters, provision of air navigation services. The only responsibilities left to individual states were aerodromes management and maintenance work. But the area control centre for air navigation services and air traffic control for aerodrome control was in Nairobi. The collapse of the EAC damaged Tanzania’s aviation sector. The government had to start from zero in everything except the airports and aerodromes. To get the feel of this one has to understand that Tanzania had to depend on the Nairobi area control centre until 1998 when the government established its own in Dar es Salaam. The problems that still bedevil the sector now include inadequate investment in hard and soft infrastructure, shortage of skilled labour, inefficient regulation as well as unfavourable and rigid policy. Operators are also concerned with multiple, exorbitant fees and charges that make operational costs extremely high.
Green Growth Compact agreement between the UK and Zambia (GOV.UK)
On Thursday in London, the UK and Zambia signed a new landmark partnership to drive sustainable economic growth and build on the momentum created by the historic COP26 climate summit. The Compact was signed in London by the UK Minister for Africa, Vicky Ford and Zambian Minister of Foreign Affairs, Stanley K Kakubo. The Compact sets targets for delivering billions of pounds of new investment, doubling trade volumes between the two countries, and channelling over £100m of new financial resources to small and medium sized enterprises. It will strengthen coordination between the entire UK business community and the Zambian Government, as well as opening up financing opportunities for Zambian businesses. It provides the framework for collaboration with UK institutions that are researching and innovating in renewable energy, urban planning, trade connectivity and more.
RwandAir boss makes case for single African aviation market (The New Times)
The Chief Executive of the national carrier RwandAir, Yvonne Manzi Makolo, has emphasised the need for a single unified air transport market in Africa, saying it will need more commitment from governments across the continent. Makolo made the call in an interview with the International Air Transport Association (IATA), earlier this week, when questioned on what it will take for aviation to recover in Africa. She said that there has to be more support for aviation from governments. But this doesn’t necessarily mean financial support. “Now, more than ever we need a single African aviation market,” she highlighted, “We have talked about it endlessly but the time for talking is over and we must get on with the implementation.”
Nigeria becomes 11th country in Africa to join WLP (Engineering News)
Nigeria has joined the World Logistics Passport (WLP) as its newest hub, with the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) as the coordinating partner. With access to the WLP network, Nigerian traders should have the opportunity to enhance the connectivity and efficiency of their cargo operations. This, in turn, will open up trade routes, allowing for faster, cheaper access to new markets, particularly in Asia, Latin America and across Africa. Nigeria is the largest economy in Africa. In 2019, product exports totalled $63.8-billion, with trade accounting for 25% of gross domestic product. The WLP is a global, private sector-led initiative aimed at smoothing the flow of global trade and unlocking market access through the creation of new trade routes. Traders and freight forwarders are said to receive increased benefits the more they trade through WLP hubs.
Egypt raises Suez Canal transit tolls (The East African)
Egypt’s Suez Canal Authority said Thursday it will hike transit tolls on the key waterway by six percent, after netting record revenues last tax year even amid the coronavirus pandemic. The new fees will come into place from February 2022, but tourist vessels and liquefied natural gas (LNG) carriers will be exempted, Suez Canal Authority chief Osama Rabie said in a statement .In July, authorities said the canal had netted record revenues of $5.4 billion in the previous tax year, despite the coronavirus pandemic’s impact on world trade, plus a six-day blockage by a giant cargo ship. Straddling the Red Sea and the Mediterranean, the Suez Canal accounts for roughly 10 percent of global maritime trade, and is a source of much-needed foreign currency for Egypt.
Africa
Add value to natural resources to boost trade, cut deficit - AfCFTA Secretariat to African governments (Myjoyonline)
The African Continental Free Trade Area secretariat is admonishing 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 product 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. Commenting on intra-trading among African countries, he said it’s presently very low, adding there is the need for countries within the sub-region to trade among each other to address the issue confronting exchange rate fluctautions.
“The level of intra African trade is very low which is less than 20%. This means we import more than 80% of what we consume. By doing so, we are losing twice as a continent, Thus the value of our currencies is deprecaiting because of the many imports we’re doing”, he added.
Group calls for AfCFTA forum on railway (The Guardian, Nigeria)
A rail advocacy group, African Railway Roundtable, has called on the African Union Development Agency – New Partnership for Africa’s Development (AUDA-NEPAD) and the secretariat of the African Continental Free Trade Area (AFCFTA) to urgently convey an AfCFTA Railway Forum. Director of the group, Olawale Rasheed, said that the forum was imperative to address the problem of connectivity, adding that the ease of movement of goods and services is at the heart of common economic union and prosperity envisaged under AfCFTA. Media Officer, Dele Abdulahi, said it is curious that several discussions on AfCFTA excluded the significance of railway as a critical success factor, in continental coordination and interoperability. Here, it is not just about technical uniformity and alignment but also the standardisation of economic and operational rules and templates among member states.
Spotlight on Infrastructure Development in Africa at Expo 2020 (African Union)
A two-day high-level conference that was aimed at showcasing and mobilising support for strategic continental infrastructure and energy projects in Africa was held at Expo 2020, in Dubai, on 31st October and 1st November 2021, convened by the African Union Commission (AUC) and the African Union Development Agency-NEPAD (AUDA-NEPAD).
The conference on Infrastructure Development in Africa at Expo 2020 featured high-level personalities and thought leaders from the continent, articulating the African vision for transformational infrastructure, while engaging stakeholders on the effective delivery of infrastructure and energy in Africa. “We believe that Africa’s better days lie ahead of us. Appropriate infrastructure is a prerequisite for implementing the African Continental Free Trade Area (AfCFTA). However, the lack of well-prepared and bankable infrastructure projects has been a major constraint. This is why we are working with AUDA-NEPAD, AfDB and other partners in the NEPAD Project Preparation Facility, encouraging strategic partnerships with the private sector,” Rt. Hon. Raila Odinga, the AU Higher Representative on Infrastructure Development in Africa stated, during the opening session of the event.
Real gross domestic product growth in North Africa was largely negative in 2020, at -1.1% with a -5.1 percentage point drop over 2019, the African Development Bank’s 2021 edition of the North Africa Economic Outlook reports. Released on November 3, the report finds that in 2020, North African economies experienced three shocks: the Covid-19 pandemic, a collapse in oil prices and a steep drop in tourism. Growth was also cut short due, in part, to sharp contractions in the region’s main trading partners. This output loss was found to be less severe than projected on account of prompt interventions by governments to mitigate the impacts of the pandemic.
The report notes that the Covid-19 pandemic has markedly reduced North African countries’ resilience. The crisis has also significantly eroded fiscal space. Amid prospects for a protracted recovery in key sources of income for the region – oil and tourism – oil exporters faced a double impact brought about by lockdowns and severe oil market fluctuations. This was particularly the case for Libya.
Africa imported over $12 billion ICT services in 2018 - NEPC (Nairametrics)
The Nigerian Export Promotion Council has highlighted trade in services as one of the major opportunities for export that can be exploited by Nigerian producers, as Africa imports over $12 billion worth of ICT services. The NEPC disclosed this in its “Opportunities in the Export Market” report published recently. The Council also highlighted the African Continental Free Trade Area (AfCFTA), as a beneficiary of the services trade with opportunities for borderless trade through e-commerce and m-commerce (mobile commerce).
“Exports in services is a $4.7 trillion a year market, accounting for 19% of the world’s global export market,” the report said. The report added that Africa imported over $12 billion worth of ICT services in 2018. “This is a huge opportunity for Nigeria under the AFCTA as 97 million new digital jobs will be created globally by 2025 of which 80% will be outsourced,” the report stated.
Africa loses N8.8tr yearly to 94% importation of pharmaceutical, medicinal needs (The Guardian, Nigeria)
Pharmacists under the aegis of the Pharmaceutical Society of Nigeria (PSN), yesterday, said Africa loses at least $16 billion (N8.8 trillion) yearly to 94 per cent importation of its pharmaceutical and medicinal needs. They also called for stronger legislation and empowerment to sanitise the drug distribution system in Nigeria. Former Minister of State for Petroleum Resources and Chairman of the 94th Annual General Meeting and Scientific Conference of the PSN in Port Harcourt, Rivers State, tagged Garden City 2021, Odein Ajumogobia, tied the figure to a recent United Nations Economic Commission for Africa (UNECA) estimate. He said: “This is a terrible indictment and highlights the need for research and policies that will promote increased growth, equitable distribution and retention, especially in the underserved North East and North West states.” The theme for the PSN conference is “COVID-19 Lessons: Broadening & Strengthening The Nigerian Pharmaceutical/Health Sector.”
Egypt targets boosting trade exchange with Africa, says PM ahead of COMESA summit in Sharm El-Sheikh (Ahram Online)
The summit, which will be attended by various heads of African states and government, is set to be held on 23 November in the Red Sea city of Sharm El-Sheikh. Egypt attaches great importance to assuming the presidency of the COMESA [for the first time since 2001], Madbouly said. COMESA was founded in December 1994 – to replace the former Preferential Trade Area (PTA) that had existed since 1981 – as an organisation of free independent sovereign states, which have agreed to cooperate in developing their natural and human resources for the good of all their people. COMESA forms a major marketplace for both internal and external trading with 21 member states that have a total population of over 583 million, a total Gross Domestic Product (GDP) of $805 billion, and a global export/import trade in goods worth a total of $324 billion.
Maputo Corridor offers importers new prospects (CAJ News Africa)
DP World Maputo, the supply chain logistics company, has opened new trade opportunities for South African commodity importers. It has developed and implemented a new and unique supply chain solution that provides importers of fertiliser, and other similar commodities, an effective and reliable option using the Maputo Corridor. The Maputo Corridor is a major trade corridor which connects the Gauteng, Limpopo and Mpumalanga provinces of South Africa with Maputo in Mozambique. Together with the Maputo Intermodal Container Depot (MICD), DP World Maputo has implemented a solution where transit import containers are unloaded at DP World Maputo’s container terminal, the cargo de-stuffed and cross docked into waiting tipper trucks at MICD.
ECOWAS Member States meet to consider Offers and Requests for Trade in Services under AfCFTA (News Ghana)
The ECOWAS Commission organized the Sixth (6th) Regional Meeting on the ECOWAS Schedule of Commitments on Trade in Services in order to consider the ECOWAS Offer in the five (5) priority Services sectors under the African Continental Free Trade Area (AfCFTA) Protocol on Trade in Services. In a speech read on behalf of Mr. Tèi KONZI, ECOWAS Commissioner for Trade, Customs & Free Movement, Mr. Kolawole SOFOLA, Acting Director of Trade welcomed the Experts to the meeting. He highlighted the support provided by the ECOWAS Commission to its Member States to ensure their Schedules of Commitments on Trade in Services were in line with the negotiations modalities, as well as consolidating individual offers into an ECOWAS Schedule of Commitments.
Towards affordable, accessible and available internet in Southern Africa (The Kubatana)
In the past few years, there has been a rush to regulate the internet in Southern Africa, more so in the wake of the COVID-19 pandemic outbreak in 2020. Since then, a number of countries in the region, starting with South Africa, enacted regulations that criminalise the publication of falsehoods, a move that was replicated in Botswana, Zambia and Zimbabwe, among others. In addition, a meeting of SADC heads of government in Maputo, in August 2020, also made a resolution to take “pre-emptive measures against external interference, the impact of fake news and abuse of social media particularly in electoral processes”.
Africa courts EU for unused World Bank, IMF reserves (The East African)
African countries are courting European Union members to reallocate their unused reserves at the World Bank and the IMF towards supporting cash-strapped economies that are weighed down by debt and reeling from the effects of the pandemic. They say the reallocation, together with trade deals and an end to inequity — such as global vaccine distribution and certification — are critical to future relationships with Europe. “Financing of our economic recovery partly through the historic decision on the Special Drawing Rights would cement efforts to engage productively on the economic level,” said Monique Nsanzabaganwa, deputy chair of the African Union Commission, while presenting African governments’ sentiments to the AU-EU ministerial meeting in Kigali on October 26.
12th Africa Day for Food and Nutrition Security (ADFNS) Commemorated (African Union)
Commemoration of the “12th Africa Day for Food and Nutrition Security” (ADFNS) was marked by a virtual colloquium from 28 to 29 October under the auspices of the African Union Commission (AUC). This year’s celebration was under the theme “Rediscovering Our Local African Diets for Sustainable Food Systems and Nutrition”. It was organised by the African Union Commission’s Department of Agriculture, Rural Development, Blue Economy and Sustainable Environment (DARBE), in conjunction with the African Union Development Agency-NEPAD (AUDA-NEPAD) and other stakeholders. Dr Ibrahim Assane Mayaki, Chief Executive Officer of the AUDA- NEPAD bemoaned the ceding of food production in the continent to foreign companies, even though Africa has the potential and capacity to take that lead, and called for a renewed concerted effort in the continent to help address the situation;
The Republic of Uganda signs Treaty for the Establishment of the African Medicine Agency (AMA) (African Union)
On 1 November 2021, the Republic of Uganda became the twenty sixth (26th) African Union (AU) member state to sign the Treaty for the establishment of the African Medicines Agency (AMA) at the AU Commission in Addis Ababa, Ethiopia
Mme. Cisse, Mariama Mohamed expressed her appreciation to the Republic of Uganda for the leadership in signing the Treaty for the establishment of the African Medicines Agency (AMA). “The Commission continues to count on the Republic of Uganda’s leadership in accelerating the ratification of the AMA Treaty and calls on your leadership to mobilize other member states in your region to sign and ratify the Treaty,” she added.
African Development Bank, AUC, and UNECA pledge more resources to improve land governance in Africa (AfDB)
The African Development Bank, the African Union Commission (AUC), and the United Nations Economic Commission for Africa (UNECA) on Thursday pledged to work more closely with governments to beef up land governance systems. In a joint declaration at the end of the 2021 Conference on Land Policy in Africa, the organizations pledged financial and technical assistance “to ensure that land governance and land policy processes in Africa are transparent, lucid and accessible and that state and indigenous systems are easily integrated.” The partners also pledged to work with practitioners in arts, cultutre and heritage to increase awareness and appreciation of land issues on the continent. The theme of the conference was “Land governance for safeguarding art, culture and heritage towards the Africa We Want.” The Rwanda government hosted this year’s event in a hybrid format, with participants gathered physically in Kigali and online.
Endless business opportunities for Bangladesh in Africa (Dhaka Tribune)
‘After Asia, African countries will be enjoying tremendous growth during this century’ As the Covid-19 pandemic has slowed economic growth in the European Union and North America, many suggest Bangladesh should be exploring the continent of Africa as the next export market. Abul Hossain, honorary consul of Uganda in Bangladesh and vice-president of Consular Corps in Bangladesh, expressed this view while talking to Dhaka Tribune in the capital recently. “After Asia, African countries will be enjoying tremendous growth during this century. Bangladeshi businessmen should tap the growing African markets that have a population of 100 crore,” said Hossain.
The Second Arab-Africa Trade Forum (Egypt State Information Service)
Under the patronage of the Egyptian Prime Minister Dr. Mostafa Madbouly, the Arab Bank for Economic Development in Africa (BADIA) and the Arab-African Trade Bridges Program (AATB) organized the Second Arab-Africa Trade Forum, at the Ritz-Carlton Hotel, Cairo, from 3rd to 4th November 2021. At the outset, the Prime Minister delivered a welcoming speech to Dr. Fahd Al-Dosari, Chairman of the Board of Directors of the Arab Bank for Economic Development in Africa, and many economic and financial figures from the African and Arab regions, ambassadors, and representatives of Arab, regional and international funding bodies and organizations, participating in the forum, in which he expressed his happiness to attend this important forum, which seeks to strengthen the frameworks of Arab-African trade, and give a strong impetus to economic relations, thus contributing to the consolidation of relations between peoples.
COP 26 updates
Climate change is powering ever more extreme weather events and disrupting precipitation across the continent. People and economies will increasingly feel the impacts of climate change through water – as it floods homes and businesses, disrupts supply chains, reduces agricultural yields, and as communities are deprived of clean water. While negotiators at COP26 in Glasgow are focused on how to slash emissions rapidly enough to rein in climate change, the destructive impacts of a warmer world are here to stay. The recent UN Intergovernmental Panel on Climate Change report made it clear that these impacts will only get worse as dry areas become even drier and wet areas wetter. African countries are already struggling to cope with today’s increasingly uncertain climate. They are not prepared for a future of greater climate extremes.
What we need is rapid and massive investment in initiatives that build resilience and strengthen climate adaptation across the continent. At least 50% of global climate financing should be directed towards adaptation, mirroring what the African Development Bank Group has already done. A much greater share should be invested in the health of Africa’s freshwater ecosystems.
Funding Africa’s $2.8tr net-zero transition by 2050 a ‘pressing issue’ (Engineering News)
Funding Africa’s transition to net zero by 2050 is one of the most pressing issues that Africa and the world must address, PwC states in a new report that estimates the cost of such a transition to be about $2.8-trillion. The ’Africa Energy Review 2021’ calculates that $33-billion would be required yearly between 2020 and 2030 to place Africa on a path to a net-zero energy mix by 2050. Yearly costs would then rise substantially to $111-billion between 2030 and 2040 and to $142-billion between 2040 and 2050. Africa emitted only 1.62-million kilotons of carbon dioxide in 2020 against a global estimate of around 33-million kilotons and the continent accounts for only 3% of cumulative global emissions and less than 5% of the world’s yearly emissions. “Such investment levels are increasingly unaffordable for many African economies and increased reliance on international finance will be needed if progress is to be made towards sustainable access to affordable energy for all Africans,” PwC energy strategy and infrastructure head James Mackay said during a virtual release of the report’s findings.
Nigeria, Other African Countries to Benefit from UK’s £143.5m Climate Change Support (This Day)
In a bid to tackle the impact of extreme weather and climate change, the United Kingdom (UK) government has announced a £143.5million funding to support Nigeria and other African governments to roll-out critical adaptation projects. In a statement, the UK said the £143.5 million programmes to support African countries in adaption to the impact of extreme weather and changing climate include, “£20 million to the Africa Adaptation Acceleration Program (AAAP); £42 million of adaptation allocations under the new Africa Regional Climate and Nature Programme (ARCAN); at least £22 million of premium financing support to help African countries pay for drought insurance; £19.5 million for the Shock Response Programme in the Sahel, including support to the World Bank to strengthen government social protection systems and its committed of about £40 million to the Climate Adaptation and Resilience research programme (CLARE) to support action-focused research to inform development in a changing climate in Africa.” Aside the above, the UK government said it has a new ‘Room to Run’ guarantee to the African Development Bank (AfDB) that is expected to unlock up to £1.45billion ($2billion) worth of new financing for projects across the continent, “half of which will help countries adapt to the impacts of climate change; doubled its international climate finance to £11.6 billion over five years – with a balance between adaptation and mitigation.”
AFRICA: development banks and climate finance, what commitment? (AFRIK 21)
The climate commitments of banks in Africa are clearly evolving. Al-Hamndou Dorsouma, Managing Director and Director of the Climate Change and Green Growth Department at the African Development Bank (AfDB), said in a statement released on June 30th, 2021, that the AfDB’s contribution to climate change-related investments quadrupled between 2016 and 2019 and are expected to reach 40% of the bank’s total investment by the end of 2021. “We are on track to mobilize the projected $25 billion between 2020 and 2025 to support investments to address climate change and foster green growth,” he continued. More broadly, the Joint Report on Climate Change Financing, released on June 30, 2021, outlines the contours. Investments by major multilateral development banks (MDBs) last year reached $66 billion, up from $61.6 billion in 2019. The report indicates that 58% of this amount ($38 billion) was spent in low- and middle-income economies, particularly in Africa. While in November 2020, Climate Funds reported that international finance mobilization to developing countries reached nearly $80 billion in 2018, with 25% of funds allocated to Africa.
Accelerating Africa’s green economy transition (Brookings)
The COP26 negotiations over policies to combat the global problem of climate change have highlighted the great need for global cooperation toward a green transition. Indeed, the recently released Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) delivers its starkest warning yet about climate change. The overarching takeaway from the climate accounting exercise is that limiting human-induced global warming requires limiting cumulative CO2 emissions to at least net zero by 2050. The Paris Agreement of 2015, with an ambitious target of keeping global warming below 1.5 degrees Celsius, has a conservative budget of 500 billion more metric tons of CO2 to be emitted to achieve the target. However, at the current rates of industrial emissions, it would take about 15 years to exhaust this budget. World leaders, including those from Africa, have a pressing task in reaching that goal. The burning question they face is: What is Africa’s role and what are the policy priorities for accelerating Africa’s green growth transition?
Uhuru warns on security toll from climate change (Business Daily)
Kenya will seek to amplify the impact of climate change on security during its tenure on the United Nations Security Council, President Uhuru Kenyatta said on Monday in his address to world leaders at the climate summit (COP26) in Glasgow, Scotland. World leaders are meeting at the United Nations Climate Change Conference to plan how to implement bold measures to avert catastrophic effects.
“We need to urgently implement bold mitigation and adaptation measures to avert the looming crisis, it is the least that we can do to bequeath a peaceful and sustainable planet to future generations,” the President told the summit attended by world heads of state and government, COP26 president Alok Sharma, UN Secretary-General Antonio Guterres and the host UK Prime Minister Boris Johnson. Kenya has developed a climate change action plan to scale up efforts to maintain low carbon emissions.
LDC Group chair says ‘wind is blowing in the right direction’ at COP26 (Eco-Business)
Sonam P Wangdi, chair of the Least Developed Countries Group, has expressed cautious optimism on the progress of negotiations following the World Leaders Summit, which took place during the first three days of the UN climate talks in Glasgow. However, he stated that overall progress to combat climate change has been “disappointing, and in a way also frightening. This is the 26th COP, emissions are still increasing, a commitment for US$100 billion per year was made more than a decade ago and it has not been delivered.”
Countries defined by the UN as Least Developed Countries (LDCs) make up this group, which is now being chaired by Bhutan. Speaking at a press conference on 3 November, Wangdi, who is also secretary of Bhutan’s National Environment Commission, called for the biggest emitters to “stop skirting responsibility” and for ambitions to be ramped up in order to halve global emissions by 2030. In response to the announcement of new net-zero targets, most notably by India, Wangdi said: “The pledges are one thing. We would like to see the evidence, which comes in the form of new updated NDCs… Until we have those it will be very difficult to verify or authenticate [the ambition of the announcements].”
Joint FAO-IRENA report on renewable energy for agri-food systems launched at COP26 (FAO)
The production, distribution and consumption of food uses about a third of the world’s energy and is responsible for about a third of global greenhouse gas emissions, making its decoupling from fossil fuels a priority in the fight against climate change. A new report launched today on the side lines of the UN’s Climate Change Conference (COP26) in Glasgow explores the relationship between the world’s agri-food systems and renewable energy and argues that solutions are within our grasp.
The report, Renewable energy for agri-food systems – Towards the Sustainable Development Goals and the Paris Agreement – shows that there are many opportunities to implement renewable energy solutions across agri-food systems,” FAO Director-General QU Dongyu said in a video message to participants in which he also stressed the importance of making innovative technologies accessible to small farmers. QU was joined for the launch by Francesco La Camera, Director-General of IRENA.
Governments need to address inevitable risks of losses and damages from climate change, says OECD (OECD)
As governments face the challenge of delivering on their net-zero by 2050 commitments, a new OECD report says they must focus in parallel on reducing and managing the inevitable risk of further losses and damages from climate change. The Managing Climate Risks, Facing up to Losses and Damages report says the risks of further impacts on economies, ecosystems, businesses and people are unavoidable and will increase with the extent of warming. These risks are unevenly distributed across countries and people, disproportionately affecting the poorest and most vulnerable, which is a compelling reason to act now.
Countries should resist raising government support for fossil fuels in response to the global surge in energy prices and the economic impacts of the pandemic, according to the OECD and IEA. Instead, given the existential threat of climate change and the need for a green recovery, they should accelerate investment in sustainable energy infrastructure and the creation of green jobs, as well as meeting the UN Sustainable Development Goals, in particular SDG 7, to ensure access to affordable, reliable, sustainable and modern energy for all.
Despite a 2009 pledge by G20 countries to gradually phase out inefficient fossil fuel subsidies, major economies still support the production and consumption of coal, oil and natural gas with hundreds of billions of US dollars each year, money that would be better spent developing low-carbon alternatives and improving energy efficiency. As well as encouraging fossil fuel consumption, fossil fuel subsidies are an ineffective way to support low-income households compared to targeted benefits and tend to favour wealthier households that use more fuel and energy. In addition, fiscal burdens of subsidies reduce the room for adequate policy actions.
Connectivity in digital services will strengthen the resilience of society, climate change initiatives (Engineering News)
The 2021 edition of the ‘Global Risk Report’ by the World Economic Forum highlighted environmental risks such as extreme weather conditions, natural disasters, the loss of biodiversity and failure to respond to climate change as some of the top risks facing the world in the years ahead. Another recent report on global climate change and global warning, this time released by the Intergovernmental Panel for Climate Change (IPCC), meanwhile, highlighted that in spite of the urgency of climate change, its challenges and the state of current commitments from countries around the world, “it is not enough to prevent rising temperatures”. Referencing both of these reports, South African mobile operator Vodacom Group property and facilities managing executive Shobana Singh lamented the worsening situation, which, according to previous forecasts, will see an estimated temperature increase of 1.5 °C above preindustrial levels.
For a Just Transition Away from Coal, People Must Be at the Center (World Bank)
Coal fueled the industrial revolution but filled the skies with smog. Today, coal continues to be the world’s most dominant source of energy and a major cause of greenhouse gas emissions warming the planet. If not phased out before 2040, coal will push the world closer to climate change catastrophe, the United Nations Framework Convention on Climate Change has warned. For these and other reasons, countries from Indonesia to Ukraine are moving away from coal. But in 2021, coal use is rebounding strongly from a decline during the COVID-19 pandemic. Many developing countries are facing severe energy shortages that jeopardize their economic recovery and disproportionately impact the poor. These factors and the challenges associated with closing coal assets and reviving coal-dependent communities continue to slow the transition to clean energy.
“Transitioning away from coal in the electricity sector is the single most important step to limiting global warming,” said Mari Pangestu, World Bank Managing Director for Development Policy and Partnerships, at a recent discussion at the World Bank’s Annual Meetings.
International
Trade Update: Time to shorten the supply chain (Logistics Management)
Because international trade has become less “globalized” compared to a few years ago, logistics managers must devote more scrutiny to regulatory compliance and unexpected penalties. This is the conclusion drawn from speaking with a number of industry analysts who note that global trade has tripled in the 21st century, from $7 trillion to $21 trillion—along with the complexity of logistical international networks. “Many industries have become capacity-constrained,” says Kamala Raman, vice president and analyst with the Gartner supply chain practice. “Some of this is driven by availability of material, some is driven by labor shortages in both manufacturing and transportation, and some of it is driven by changing quarantine conditions around the globe as well as the general inability of countries around the world to operate at a pre-pandemic normal.”
WCO Secretary General addresses Trade Ministers of Landlocked Developing Countries (WCO)
On 4 November 2021, the WCO Secretary General, Dr. Kunio Mikuriya, spoke at a Ministerial Meeting of Landlocked Developing Countries (LLDCs) themed “Towards sustainable, resilient COVID-19 recovery: Bridging the LLDCs’ trade gap”. The Ministerial Meeting discussed the impact of the COVID-19 pandemic on LLDCs and the examples of best practice for promoting international trade, trade facilitation and connectivity, as well as the path towards a resilient COVID-19 recovery.
Secretary General Mikuriya highlighted the WCO’s contribution to the implementation of the Vienna Programme of Action for LLDCs and the support provided to LLDCs in a number of areas, such as setting standards for transit and other modern border procedures, deployment of technology as well as human resource development. Dr. Mikuriya noted the steady increase in LLDCs’ accessions to the WCO Revised Kyoto Convention with 70% of LLDCs now being Contracting Parties to this important international convention. He provided information on LLDCs’ best practices in transit and trade facilitation and elaborated on the lessons learnt during the COVID-19 pandemic, such as the importance of automation of Customs processes towards a truly paperless Customs environment and contactless clearance and the need to facilitate and secure e-commerce.
Brave New World: Tracking Trade from Space (IMF Blog)
When the onset of the pandemic drastically changed economic conditions across the globe, policymakers with access to real-time economic data were much better placed to make quick, informed policy decisions. A new world of big data is now unfolding, where satellites orbiting in space are helping to inform economic decisions—both for industry and policymakers. New IMF staff research shows that some of the large data gaps routinely faced by small fragile states could be filled using satellite data. Specifically, trade volumes can be measured and tracked in real time, which is a critical input for policy decisions.
World food prices reach new peak since July 2011 (FAO)
The world food price barometer surged to a new peak reaching its highest level since July 2011, the Food and Agriculture Organization of the United Nations (FAO) reported today. The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of food commodities, averaged 133.2 points in October, up 3 percent from September, rising for a third consecutive month.
The FAO Cereal Price Index in October increased by 3.2 percent from the previous month, with world wheat prices rising by 5 percent amid tightening global availabilities due to reduced harvests in major exporters, including Canada, the Russian Federation and the United States of America. International prices of all other major cereals also increased month-on-month.
The World Bank’s ‘Doing Business’ report is out of business. So what next? (UNCTAD)
In September the World Bank announced it was “discontinuing” its “Doing Business” report, which ranks countries on the ease of opening and operating a company. It cited the outcome of an investigation that found the World Bank had changed the rankings under pressure of funding. This wasn’t the first time the rankings had come in for criticism. A 2008 internal evaluation report highlighted their lack of transparency, while in 2018 the Bank’s chief economist, Paul Romer, resigned decrying data manipulation. In truth, the rankings had for some time faced a credibility issue. My colleagues and I saw this first hand. And there were a number of reasons for it.
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National
Trade Statistics for September 2021 (South African Revenue Service)
The South African Revenue Service (SARS) today releases trade statistics for September 2021 recording a preliminary trade balance surplus of R22.24 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN). The year-to-date (01 January to 30 September 2021) preliminary trade balance surplus of R352.21 billion is an improvement from the R167.60 billion trade balance surplus for the comparable period in 2020. Exports increased by 16.3% year-on-year whilst imports increased by 31.9% over the same period.
Value addition plants key to rural development (The Herald)
For a long time value addition has been part of Zimbabwe’s development language, embedded in major economic blue print and both short and long term goals. But slow action and implementation emptied the true meaning of value addition and the ability of the government to deliver on the aspirations of rural people. In short, value addition policies were wrapped in development language that was comforting and full of ‘feel-good’ rhetoric that had no practical evidence on the ground. But now, things are changing and there is a significant difference on the ground and achievements in policies and actions on value addition plants in rural areas are being accorded greater attention.
Kenya to gain as US restricts Ethiopia goods on Tigray war (The East African)
Kenya looks set to benefit after the US suspended duty-free access to Ethiopian exports following ongoing unrest in the country’s Tigray region. The US move to ban Ethiopia opens a window for Kenyan textile and apparel firms to increase their exports to the US market of more than 6,000 product lines as US restrictions hit their Ethiopian rivals.US authorities said Ethiopia had breached the eligibility requirements of the African Growth and Opportunity Act (Agoa) because of “gross violations of internationally recognised human rights” a US official was quoted by reports saying. Kenya’s total exports to the US under the Agoa plan peaked at Ksh46 billion ($412.5 million) in 2019, before declining eight percent to Ksh42.2 billion ($378.5 million) in 2020, according to the Economic Survey data. On the other hand, Ethiopia exported about Sh26.3 billion worth of goods duty-free to the US under Agoa last year, US commerce department data shows.
Tanzania’s ratification of the AfCFTA: What does it imply? (The Citizen)
September 9, 2021 was a milestone date for Tanzania as it became the 39th country in Africa to deposit its instrument of ratification of the African Continental Free Trade Area (AfCFTA). The other East African Community (EAC) member countries of Kenya, Rwanda, Uganda and Burundi had ratified the agreement earlier, and - with Tanzania now on-board - only South Sudan that has not ratified the agreement. The relevance of ratification is that it is the necessary legal instrument for a country to be bound to an international agreement. In particular, much as an international agreement may have entered into force, it binds only those states that have consented to be bound by it. In the context of AfCFTA: what does consent imply? What have we committed ourselves to? In brief, it is a consent to liberalise 90 percent of tariff lines, meaning that Tanzania will reduce, and ultimately eliminate, tariffs on 90 percent of products traded under the AfCFTA. Much as Tanzania’s categorisation as one of the Least Developed Countries (LDCs) is not a source of pride, at least it comes with the advantage of a longer (10-year) period to accomplish this; by contrast, non-LDCs have a five-year period.
The commitment is also not absolute in the sense that Tanzania can provide a list of sensitive products capped up to seven percent of tariff lines, which will be fully liberalised over an even longer period of time - namely 13 years (while non-LDCs are provided with 10 years). In addition, 3 percent of tariff lines will be excluded from tariff liberalisation.
Tanzania registers $3.5 billion investment projects in seven months (CGTN Africa)
Tanzanian authorities said on Wednesday a total of 182 investment projects worth 3.5 billion U.S. dollars were registered in the east African nation between April 2021 and October 2021. Geoffrey Mwambe, the Minister of State in the Prime Minister’s Office responsible for Investment, said 164 of the 182 investment projects were registered by the Tanzania Investment Center (TIC) and 18 projects were registered by the Export Processing Zone Authority (EPZA).
Mwambe attributed the impressive flow of investment projects to measures aimed at improving the investment environment being undertaken by President Samia Suluhu Hassan’s administration.
Zim, Seychelles seek deeper bilateral, trade cooperation (Chronicle)
ZIMBABWE seeks to benefit from the experience of Seychelles in the tourism sector as part of bilateral and trade cooperation between the two countries. Ambassador David Hamadziripi, who is also Zimbabwean Ambassador to South Africa, said this recently after presenting his credentials to Seychelles President Wavel Ramkalawan at that country’s State House, Victoria. He becomes the first Ambassador of Zimbabwe to Seychelles. “Zimbabwe is also a very attractive tourist destination. Even if we offer a different package altogether, we can still benefit from the experience of Seychelles in marketing, training and other related areas in the tourism sector,” said Amb Hamadziripi.
Nigeria is oil rich and energy poor. It can’t wait around for cheaper batteries (CNN)
many poor countries that have so far contributed very little to global CO2 emissions are particularly vulnerable to rising temperatures and increased droughts, fires and floods linked to climate change, which threaten food security and exacerbate water scarcity.
If poor countries are asked to give up fossil fuel production, experts say their wealthy counterparts need to spend trillions of dollars to develop solutions that both spur economic development and protect the planet. If that doesn’t happen, the global poor may be left behind in the energy transition.
“We have enormous reserves of gas in Nigeria and we need to be able to tap into those resources to develop the Nigerian economy,” Ajayi told CNN Business, adding that alongside power generation, gas will also be crucial to developing industries such as petrochemicals and fertilizers.
Okonjo-Iweala: Nigerian’s Banking Sector Has Contributed Immensely to the Development of the Country (ThisDay)
The Director General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, has applauded the stability of the Nigerian banking sector citing it as a catalyst to the recovery and development of the country. She also noted that the emergence of innovations in financial technology (FinTech) would continue to play a role in the stability and growth of the banking sector.
“Nigerian’s banking sector has contributed immensely to the development of the country but there is still so much to be done. And our financial services industry, including the emerging FinTech sector, as a stronghold to play. “The theme of your deliberation regarding Nigeria’s debt profile and its implications for sustainable development is a very important one. If there is a group that has the necessary professional insight on issues of debt, and debt, sustainability be it at the individual, institutional or national level, it is you.”
Telecom Regulators to Combat e-Fraud, Standardise Regional Roaming Tariffs (ThisDay)
The Nigerian Communications Commission (NCC) and other telecoms regulators under the auspices of West African Telecoms Regulators Assembly (WATRA), are set to develop technical and regulatory modalities, aimed at combating rising wave of electronic frauds, and standardising regional roaming tariffs in the sub-region.
The meeting, which was attended by representatives of telecoms regulators from countries across West Africa, provided a platform for key participants and stakeholders to deliberate on building a unified market in telecommunications services in West Africa, to combat roaming and cyber-related frauds, and achieve the standardisation of roaming tariffs among ECOWAS member-states.
“About 75 per cent of trade within ECOWAS is informal, and thus poorly recorded. Therefore, digitising this trade through employing many forms of electronic payments is a significant step towards formalising, governing and boosting intra-ECOWAS trade activities. Our ambitions are to formalise informal trade, including agricultural commodities as well as boosting intra-regional trade and this requires us to improve collaboration on combating electronic fraud,” said Executive Vice Chairman of NCC, Prof. Umar Garba Danbatta, who is also the Chairman of WATRA.
State attaches special importance to enhancing role of WTO (Egypt State Information Service)
Minister of Trade and Industry Neveen Gamea asserted that the Egyptian state attached special importance to enhancing the role of the World Trade Organization (WTO) which is a cornerstone of the multilateral world trade movement. She expressed Cairo’s backing for Arab efforts to reach tangible results for the sustainable development at the 12th ministerial conference of WTO (MC12), due to convene on November 30 till December 3 in Geneva.
Algeria to halt gas exports to Spain via Morocco (Africanews)
Algerian President Abdelmadjid Tebboune on Sunday ordered state energy firm Sonatrach to halt gas exports to Spain through a pipeline that traverses Morocco due to tensions with Rabat. Algeria, Africa’s biggest natural gas exporter, has been using the Gaz-Maghreb-Europe (GME) pipeline since 1996 to deliver several billion cubic metres (bcm) per year to Spain and Portugal. But the GME contract is due to expire at midnight Sunday, just over two months after Algiers severed diplomatic ties with Rabat over “hostile actions” -- accusations Morocco has dismissed.
Morocco’s trade deficit up 25.5 pct in Sept. (China.org.cn)
Morocco’s trade deficit increased by 25.5 percent year-on-year to 151.84 billion dirhams (about 17 billion U.S. dollars) by the end of September, the Moroccan foreign exchange regulator said Tuesday. Morocco’s exports reached 230.43 billion dirhams (about 25.34 billion dollars), up by 22.1 percent year-on-year, while the imports rose by 23.4 percent to reach 382.27 billion dirhams (about 42.04 billion dollars), the Exchange Control Office was quoted by the Moroccan News Agency (MAP) as saying in a release.
Africa
Connecting Africans with Africans: How effective communication can help boost intra-African Trade (Africa Renewal)
The question is, are African countries harnessing this potential offered by the AfCFTA? According to the African Development Bank (AfDB), intra-Africa exports amount to only 16.6% of total trade.
The agreement promotes socio-economic growth and development in Africa through liberalised trade processes and structures. So far, the 54 African countries have signed the agreement, resulting in immense potential for the growth of trade between African countries. In fact, it has been hailed as perhaps the “most ambitious free trade project since the creation of the World Trade Organization itself” by Martyn Davies, the managing director of Emerging Markets at Deloitte Africa.
“It is imperative that we decisively deal with operational constraints and Non-Tariff Barriers which negatively affect the performance of the cross-border transport system and in the corridors linking the COMESA-EAC-SADC tripartite and beyond,” said Mr. Mboyi. He added: “As we do this, we must aim to ensure that cross-border road transport operations are underpinned by firstly, a harmonised regulatory environment and secondly; a predictable operating environment,” said Lwazi Mboyi, the Acting CEO of the Southern African Cross-Border Road Transport Agency (C-BRTA),
AfCFTA: Adoption of eNaira as driving force (New Telegraph)
Recently, Nigeria adopted the Central Bank’s Digital Currency (CBDC) otherwise known as eNaira in supporting blockchain technology innovation. For the feat, the Manufacturers Association of Nigeria (MAN) and other private sector operators agree that the digital currency is needed to play a role in trade and exchange during AfCFTA implementation.
The African Continental Free Trade Area (AfCFTA) agreement has been the much talked about issue in recent time in the continent. However, Nigeria’s part has been peculiar because members of the organised private sector have been raising concerns about Nigeria’s preparedness, since the basic social amenities (infrastructure) needed to accelerate growth and development are not in place. Nigerian manufacturers are insisting that, no doubts, for Nigeria to remain a big player in Africa, a digital currency is needed to play a role in trade and exchange. Therefore, they are suggesting that adopting and keying into blockchain technology to drive business, regulatory and governance processes are needed by Nigerians in the private and public sectors. The private sector operators said blockchain could potentially contribute up to $29 billion to Nigeria’s GDP (gross domestic product) by 2030, if well harnessed and with eNaira being at the front burner of Nigeria’s economy.
Annual conference focuses on post-pandemic growth for Africa and draws supply chain and procurement professionals from 30 countries (Engineering News)
The 2nd Annual Africa Supply Chain in Action (ASCA) conference saw hundreds of African supply chain and procurement professionals from 30 countries gather online to examine what Africa has learned from COVID-19, how businesses and the supply chain profession can collaborate and innovate to ensure post-pandemic prosperity, and how supply chains can drive economic growth and success now and beyond the pandemic. Now in its second year, ASCA is the largest Africa-focused online learning, knowledge sharing and networking event for the profession.
“Covid-19 has disrupted our social and economic order at lightning speed and on a scale that we have not seen in living memory. We must marshal the determination of all - individuals, governments, businesses, and more specifically the supply chain and procurement community - to act decisively, ethically, and to act together, to protect lives and livelihoods,” said Pearl Marsh, Head of Content at Smart Procurement, at the opening of ASCA 2021.
In his powerful keynote presentation, Africa Business Group CEO Michael Sudarkasa discussed how the “prosperous Africa that we want” cannot be achieved without collaboration. He noted that Africa has fared better than many regions amid the COVID crisis. “We have a growing youth workforce, set to reach 830 million by 2050. We have a growing middle class and consumer market. The rapid expansion of mobile phone technology is enabling growth in financial technology and agricultural technology. The growing number of African women working outside the home has created opportunities in the agricultural processing space and is contributing to GDP growth. The pandemic slowed local and international travel, but despite that, we are seeing accelerated intra-African travel.”
A surge in African fintech’s intra-continental expansion to target SMEs (TechCabal)
Support for small businesses keen to trade across the continent’s single market is being eyed as a potentially lucrative market by more and more African fintech startups. Africa’s fintech startups are rapidly expanding beyond their host countries’ borders to tap into the anticipated surge in trade and investments with the opening up of the world’s largest single market, the African Continental Free Trade Area (AfCFTA).
In the last month alone, a number of startups have either raised growth funds, acquired another player present in regional markets within the same vertical, or tapped top talent in the telecoms industry. Their intention appears to be the targeting of small industries and traders seeking cross-border opportunities in new African markets.
U.N. launches fund to foster cheaper loans, green development for Africa (Reuters)
The United Nations on Wednesday launched a new finance mechanism aimed at saving African governments $11 billion in borrowing costs in the next five years, while fostering greener investments and sustainable development. The U.N. Economic Commission for Africa (UNECA) launched the Liquidity and Sustainability Facility (LSF) at COP26, the global climate conference underway in Glasgow, Scotland. International investors with portfolios containing African government bonds will be able to approach the LSF for short-term loans, known as repos, using the bonds as collateral, enhancing investors’ ability to turn those bonds into cash at short notice, known as liquidity. This would make the bonds less risky and therefore more attractive to a wider range of investors. African governments would then benefit from more demand and enhanced liquidity for their bonds, as well as cheaper financing costs. The LSF said it could potentially save African governments up to $11 billion in borrowing costs over the next five years.
Africa Must Lead on Capital Flight by Carlos Lopes & Ricardo Soares de Oliveira (Project Syndicate)
The Pandora Papers, the largest investigative effort yet to shed light on the world of offshore finance, show just how serious the challenge of illicit financial flows is for Africa. The papers reveal that many prominent Africans hold assets in major financial centers abroad with the help of professional enablers who provide them with secrecy, ensure asset protection, and secure tax exemptions.
Some African initiatives demonstrated early leadership in assessing the issue and developing potential solutions. The African Tax Administration Forum, which was created in 2008 and includes 38 African states, has been a noteworthy actor on tax reform issues. The High-Level Panel on Illicit Financial Flows from Africa, a joint effort of the African Union and the United Nations Economic Commission for Africa, first convened in 2012 and produced a much-discussed report on the subject in 2015. At that time, it seemed offshore finance would be a regular part of African Union discussions. Unfortunately, it is disappearing from the agenda.
there is no multilateral African body leading the way on the problem, and the African organizations that were working on it actively five years ago have assumed what can only be described as a low profile. It is hard to avoid the sense that many of the continent’s rich and powerful have little incentive to compromise arrangements that have enabled them to move, hide, and protect their assets. Moreover, their lawyers and financial advisers point out that many such practices are not only legal, but common among multinationals active in Africa, especially in the extractive industries. According to this logic, there is no reason Africans should not avail themselves of strategies that are widespread in the global financial system. This lack of concern by African states over illicit finance is bolstered by the perception that in most countries, most of the time, tax evasion is not a matter that registers with public opinion. At best, leaders assume that any effect the issue has on public trust can be managed. They are certainly wrong, especially regarding younger voters, but this view shapes their non-committal approach.
Dr. Mikuriya also highlighted the WCO capacity building initiatives for its Members, namely regional workshops as well as global conferences such as the WCO TECH-CON that helps to bring together the private sector and Customs to discuss the use of new techologies. He added that technologies also help to improve methodologies and capacities of Customs operations through smart solutions in documentation processing, cargo inspection and cargo tracking.
As Covid Fades, Multinationals Turn Attention Back To Africa As World’s Only Growing Consumer Base (iAfrica)
The consequences of Covid-19 will be felt for years to come, but it is clear already that multinational companies and investors are turning their attention back to the world’s youngest continent – and with good reason. Speaking at EY’s Africa Tax Summit 2021 which was held last week, Larry Eyinla, EY Africa Tax Leader, said: ”Investors have for years followed Africa’s notable and durable demographic trends. And now as Covid is hopefully receding they are once again focusing on Africa’s distinctive appeal which has been brought into stark relief by the pandemic. “In the coming decades Africa will be the world’s only source of a growing labour forces and consumer bases. It is the world’s youngest continent, and stands out in a world of ageing and shrinking populations.” He added the big question for Africa post COVID is where it lands in the global reset.
AfDB’s High 5 agenda positively changing lives for millions in Africa (Devdiscourse)
The Bank’s High 5 priorities involve lighting up and powering Africa, feeding the continent, industrializing Africa, integrating Africa, and improving the quality of life for the people of Africa. Adesina was delivering a lecture last Thursday at the 21st NECCI Public Relations Roundtable on Social Media, National Security and Social Change in Lagos. He said the African Development Bank was investing heavily in quality infrastructure to transform the backbone of Africa’s technological revolution. The Bank president said: “We are a people-centred bank – a solutions bank for Africa, and our efforts are being recognized globally…The African Development Bank has maintained its stellar AAA rating by the major global credit rating agencies for the past six years. Since I was first elected president of the African Development Bank six years ago, together with our partners, we have made a difference in the lives of 335 million people across the continent.”
East Africa’s economic growth is expected to recover to an average of 4.1% in 2021, up from 0.4% posted in 2020, according to the African Development Bank’s latest economic outlook report for the region. In 2022, average growth is projected to hit 4.9%. The flagship report, launched on 28 October, reviews the socio-economic performance of 13 countries: Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, South Sudan, Sudan, Tanzania, and Uganda. According to the report’s findings, Covid-19 containment measures and global supply and demand disruptions hit businesses and livelihoods hard and increased poverty, while political fragility in some countries and limited economic diversification in others were significant impediments to growth. The report, themed Debt Dynamics in East Africa: The Path to Post-Covid Recovery, notes that the rapid recovery of the region is being driven by sustained public spending on infrastructure, improved performance of the agricultural sector, and deepening regional economic integration.
External debt: Tunisia has highest rate in North Africa in 2020 (AfricanManager)
Tunisia’s external debt accounted for 97.2% of GDP in 2020, the highest rate in North Africa, according to the estimates of the 4th edition of the report “North African Economic Outlook 2021 / Debt Dynamics: the path to recovery Post-COVID”, published by the African Development Bank (AfDB). The report presented at a webinar held Wednesday highlights that Tunisia remains more vulnerable to exogenous shocks than other North African countries due to its heavy dependence on external debt, which increased by 42.4 points between 2012 and 2020.
As for public debt, the bank warns that it will become “unsustainable” if Tunisia does not undertake solid and credible reforms with broad domestic support.
To improve public debt management and strengthen domestic resource mobilisation, Audrey Verdier-Chouchane, regional economist for North Africa, emphasised the need to put in place mechanisms and institutions to balance the benefits and costs of additional debt. She also called for better debt transparency and careful monitoring of contingent liabilities, emphasising the need to restructure state-owned enterprises and to use debt effectively to finance productive investments.
‘How agro-allied companies can lower food prices’ (The Guardian Nigeria)
To address the challenges of rising food prices across the country, more players in the agri-food system need to increase their investments in homegrown innovation and local production of raw materials, stakeholders have said. Speaking at the sub-summit of the recently concluded NES, which had its theme as: Sustainable Food Security and Systems Response, the group managing director of Flour Mills of Nigeria, Omoboyede Olusanya stressed the need to increase local supply of raw materials to enhance food security. He said innovation of local raw materials further drives investments in backward integration.
China – Africa: Will the new Covid-19 wave affect trade with the continent? (The Africa Report)
While global trade experiences unprecedented disruptions of major supply chain networks, that turbulence does not appear to have had much effect on the volume of Chinese trade with African countries, at least so far. Chinese customs authorities announced last week that two-way trade for the first eight months of the year totalled $162.7bn, 40% higher than the same time last year. At this pace, bilateral trade between China and African countries is on track to easily exceed the $187bn the two regions did in 2020.
COP 26 updates
African, other world leaders gather for largest summit on climate adaptation at COP26 (AfDB)
African and other global leaders came together at COP26 in Glasgow yesterday for the Africa Adaptation Acceleration Summit, the largest summit to date on climate adaptation. The summit called for the rest of the world to ramp up its support for the African continent as it adapts to the adverse effects of climate change, including devastating human impacts in Madagascar, where 1.3 million people live under food distress following four years of no rain.
President Félix Tshisekedi of the Democratic Republic of Congo and Chairperson of the African Union led Tuesday’s event. He highlighted the $6 billion in financial commitments for climate adaptation that African countries had put forward in their nationally determined contributions (NDCs) and called for increased funding to produce the additional $27 billion a year that the continent requires.
President Tshisekedi said: “Adaptation finance flowing to Africa is grossly insufficient compared to the enormous resources needed for the continent to adapt to climate change. That is why African countries, working with the Global Center on Adaptation, the African Development Bank, and other partners, launched the Africa Adaptation Acceleration Program (AAAP). The program lies at the heart of Africa’s climate change needs. It is Africa-owned and Africa-led. African nations have endorsed it as Africa’s preferred mechanism to deploy adaptation finance for adaptation projects in Africa.”
What did African leaders call for at COP26’s opening ceremony? (Quartz Africa)
During the first two opening days of COP26 in Scotland, over 25 African leaders took center stage to demand climate justice and greater support from richer nations. African leaders demanded wealthy countries make good on their pledge to deliver $100 billion a year in climate finance to developing countries – a commitment made at the UN climate talks in 2009. A report recently announced they would not be able to meet this target until 2023. Between 2016 and 2018, only 25% of the money promised to developing nations went to Africa. While the continent is responsible for just 3% of global emissions, it remains the most vulnerable region to global warming. For example, Madagascar has been hit by one of the modern world’s first climate change-induced famines, yet the island country produces a little more than 0.01% of the world’s annual carbon dioxide emissions.
A recent report showed lower income countries spend five times more on debt to rich nations than coping with the impact of climate change. Several African leaders lamented high debt payments which are hindering adaptation efforts. “Due to high debt servicing, we lack the fiscal space to scale up investment in climate change action,” said Julius Maada Bio, the president of Sierra Leone. He added that Africa has access to less than 5% of global climate financing streams, while Moeketsi Majoro, Lesotho’s president said “access to global climate finance mechanisms remain effectively shut.”
Several stressed finances should come in the form of grants and not loans, and should be directed towards adaption – not mitigation.
African Union Asks World for $12.5 Billion for Continent’s Climate Adaption (Bloomberg)
African leaders and campaigners are pressing the international community to do more to help poorer and vulnerable nations adapt to climate change, seizing on evidence showing the continent to be the most endangered by the effects of global warming. The head of the African Union, Congolese President Felix Tshisekedi, said other parts of the world must contribute half of the $25 billion the continent needs to run an adaptation program over the next five years. The balance will come from the African Development Bank. Tshisekedi spoke Tuesday before an Africa-focused summit at the U.N. climate conference in the Scottish city of Glasgow. He was one of several leaders who highlighted Africa’s plight in the face of climate change despite being the populated continent least responsible for global emissions.
Tshisekedi noted that the global effort on climate change “can’t be won unless it is won in Africa,” which is home to 1.3 billion people. Africa’s 54 nations contribute only about 3% of global emissions, a fact that surprises some ordinary Africans when they find out.
Climate Finance Isn’t Reaching Southern Africa’s Most Vulnerable (ISS)
Despite contributing little to climate change, Southern Africa is among the worst-affected regions globally. And those who are bearing the brunt are the ones with the least resources to adapt. The region’s governments have not prioritised adaptation measures such as early warning systems, climate-resilient infrastructure, dryland agriculture, mangrove protection, and resilient water sources. And the costs of these measures are rising far faster than funding is being provided. As COP26 kicks off this week, countries in the region must raise funds and increase adaptation planning efforts. The World Food Programme has called Southern Africa the ‘epitome’ of the link between climate and the water-energy-food nexus. The 16 Southern African Development Community (SADC) states have recorded 36% of all weather-related disasters in Africa in the past four decades. These affected 177 million people, left 2.7 million homeless and inflicted damage in excess of US$14 billion. Climate change will continue to increase the frequency, intensity, duration and locations of these slow- and sudden-onset impacts.
Priorities for Africa at COP26 and beyond (Africa Renewal)
Climate finance, technology transfer and capacity building are indeed the priorities that are being put forward to COP26. The finance conversation is a big one because it is, in a sense, the prerequisite for many of the other things to happen, including technology transfer. The mobilisation of finance to tackle climate change, particularly for adaptation, is as urgent as ever. African advocacy to ensure that previous commitments are honoured will be critical. Ultimately, we cannot divorce the climate resilience agenda from the development agenda. We cannot have one without the other. However, the biggest missing piece in the puzzle is up-front financing.
While its contribution to greenhouse gas (GHG) emissions is very low, Africa is highly vulnerable to climate change. The conclusions of the Africa chapter of the 4th IPCC Assessment Report are clear: Africa’s major economic sectors are suffering huge economic impacts from climate change and the situation is exacerbated by endemic poverty, governance shortcomings, limited access to capital, infrastructure and technology, ecosystem degradation and complex disasters and conflicts. Current autonomous adaptation by African farmers will not be sufficient to face growing drought stress in wide areas of the continent, and agricultural production and food security are increasingly compromised in several African countries. Climate change will aggravate the existing water stress situation and have detrimental impacts on human health. These examples are an illustration of the threat that climate change represents for the achievement of Sustainable Development Goals (SDGs) across. .
Even if the target of the PA is reached and the global temperature increase is kept within 2°C above preindustrial levels, the cost of adapting to climate change across Africa is estimated to reach $ 50 billion a year by 2050. However, global finance for adaptation in 2030 would need to be approximately 6 to 13 times higher than international public finance in 2016 to avoid an adaptation gap. Mobilising new finance, especially from private sources, will be crucial for ensuring an adequate level of adaptation
Natural Gas Key to Africa’s Energy Security, Says AfDB’s Adesina (Bloomberg)
Natural gas remains key to Africa’s energy security and economic prosperity, even as political pressure grows to speed up the transition away from fossil fuels, according to the continent’s biggest development bank. “Gas is fundamental to Africa’s energy system,” African Development Bank President Akinwumi Adesina said in an interview with Bloomberg News on Wednesday. “We’ve got to make sure that we’re pragmatic” and that a system is created to support long-term development, he said. While natural gas is less polluting than other fossil fuels such as coal and oil, some environmentalists want to end its use because the industry is responsible for methane that has far more planet-warming power than carbon dioxide.
Even if Africa tripled its natural gas output, it would add under 1% to its less-than 3% contribution to global greenhouse gas emissions, said Adesina. The world needs to “be fair to Africa” because the continent needs to industrialize and create jobs which requires a stable energy supply, he said.
Kenya to lead resource mobilisation for climate change mitigation in Africa - Uhuru (The Star, Kenya)
President Uhuru Kenyatta has announced Kenya’s plan to work with African countries that form the ‘Giants Club’ conservation group to raise resources for investment in the continent’s climate change mitigation programmes. The president said that the plan will create opportunities for the private sector to invest in the restoration of Africa’s carbon sinks including forests, and ensure that governments and host communities reap maximum benefits from climate change mitigation interventions.
“Restoring and protecting these carbon sinks can help also create hundreds of thousands of critical green jobs, drive enterprises away from destructive forms of land use, can help us tackle poverty, combat illegal wildlife trade and also prevent future pandemics, and ensure that the diversity of life on which we all depend continues to endure,” Uhuru said.
ECOWAS develops regional climate strategy on the sidelines of COP26 (Togo First)
The ECOWAS is developing a new climate strategy, specifically designed to improve its coordination of climate action in West Africa. “Because coordinated regional action has more impact than the addition of national policies alone, ECOWAS has been working throughout 2021 to develop a Regional Climate Strategy,” reads a press release issued by the institution on November 1. “This strategy will contribute to strengthening the region's resilience to the impacts of climate change, in particular through support for the implementation of the commitments made by its Member States under the Paris Agreement,” it adds
Global finance ministers gather to discuss how public and private finance can lead the transition to a net zero, climate resilient world (UN Climate Change Conference UK 2021)
Finance Ministers, International Finance Institutions and the financial sector are meeting at COP26 today to get global finance flowing for climate action. Mobilising finance is critical if we are to deliver the urgent action we need to limit global temperature rises to 1.5C. Trillions of dollars of additional investment a year are needed to secure a low-carbon future and support countries already living with the devastating impacts of climate change.
Countries made new commitments to increase finance to support developing countries to deal with the impacts of climate change, including a commitment from Norway to triple its adaptation finance, commitments from Japan and Australia to double their adaptation finance, and commitments from Switzerland, the US and Canada for the Adaptation Fund.
Demonstrating the direct benefits of what public climate financing can achieve: leaders from South Africa, the United Kingdom, the United States, France, Germany and the European Union yesterday announced a ground-breaking partnership to support South Africa with an accelerated just energy transition.
Transboundary climate change, adaptation risks in Africa over next 10 years of great concern among policymakers: Survey (Down to Earth)
Transboundary climate change and adaptation risks (TCAR) that can affect agricultural value chains were perceived as in Africa, according to a new report. TCARs are climate and adaptation risks that result from climate change events that flow beyond national borders. They can spread in the following ways: Biophysical Financial (the flow of capital) Trade People Geopolitical (laws and policies around movement, regional cooperation and border sovereignty)
Biophysical pathway refers to transboundary climate risks that manifest through alterations to flow within biophysical systems such as river basins, arid lands or oceans. The trade pathway refers to transboundary climate risks that manifest through disruptions to the price, quality and availability of goods and services on international markets and supply chains.
COP Lack of Progress Is ‘Frightening,’ Says Poor Nations Bloc (Bloomberg)
The chairman of the group of the poorest countries said COP26 climate talks have so far been disappointing, and even “frightening.” “The progress made here is disappointing and in a way also frightening,” Sonam Phuntsho Wangdi, who chairs the so-called Least Developed Countries group, told reporters in Glasgow, Scotland. He called for additional funds to be made available for countries suffering from damage resulting from climate change. World leaders unveiled a series of pledges during a two-day summit in Glasgow, though much of what has been announced isn’t binding and doesn’t include some key emitters. When talks started, the world was on track for 2.7 degrees Celsius of warming -- a scenario that poses an existential threat to many nations.
As pressure mounts for urgent climate action, UN Secretary-General António Guterres today issued a global roadmap to achieve a radical transformation of energy access and transition by 2030, while also contributing to net zero emissions by 2050.
The roadmap sets an aggressive timeline to ensure that 500 million more people gain access to electricity in a mere four years’ time, by 2025, and 1 billion more people gain access to clean cooking solutions. This would require that annual investment in access to electricity and clean cooking increase to US$ 35 billion and US$ 25 billion, respectively. The required investment represents only a small fraction of the multi-trillion-dollar global energy investment needed overall, but would bring huge benefits to one-third of the world’s population.
The global roadmap is a major outcome of the UN High-level Dialogue on Energy held on 24 September, at which over 130 Heads of State and Government and global leaders from business and other sectors announced over $400 billion in new finance and investment for clean energy as part of voluntary commitments called Energy Compacts.
WTO issues information briefs on trade, climate, related issues with COP26 talks underway (WTO)
The WTO Secretariat has published five information briefs on trade, climate and related issues in support of efforts to harness trade policy as part of the solution for effective and just climate action.
Financing Facility to Support LDCs and SIDS on Climate Observations (IISD)
The World Meteorological Organization (WMO), the UN Development Programme (UNDP), and the UN Environment Programme (UNEP) have signed a Memorandum of Understanding to legally establish the Systematic Observations Finance Facility (SOFF) as a UN Multi-Partner Trust Fund. SOFF will address the problem of missing weather and climate observations from Least Developed Countries and Small Island Developing States. SOFF will seek to fill data gaps that limit our understanding of the climate, and to thereby enhance capacity to predict and adapt to extreme weather events such as floods, droughts and heatwaves. It is expected that, by filling data gaps in LDCs and SIDS, all countries will be able to make better weather forecasts and early warning systems and climate information globally will be enhanced.
Climate finance Rich countries’ broken promise trapping poor countries in debt (The Financial Express)
As the COP26 United Nations (UN) Climate Change Conference takes place in Glasgow (UK), serious reflections are needed on rich countries' broken promise "to a goal of mobilising jointly US$100 billion per year by 2020 to address the needs of developing countries" made 12 years ago at the COP16 in Copenhagen.
While minuscule compared with the investment required to avoid dangerous levels of climate change, non-transparency and double-counting make it harder to monitor the rich countries' broken promise. Meanwhile, poor countries are increasingly falling into debt traps trying to cope.
COP26: UK government launches call to action for exporters to go green (GOV.UK)
UK Export Finance (UKEF), the UK’s export credit agency, has today launched a call to action to business across the country to take advantage of renewable export opportunities around the world in the race to net zero. Launched at COP26 conference in Glasgow, UKEF is highlighting the global reach of ‘Made in Britain’ excellence and the scope for businesses to take the lead on driving a more sustainable future. Green trade is set to be worth £1.8 trillion by 2030, delivering up to £170 billion of export sales in goods and services for the UK by 2030. UKEF has enormous liquidity for UK businesses to tap into and take advantage of green trade, with a £50 billion capacity to support UK exports.
COVID-19 Responses Could Help Fight Climate Change (World Bank)
As the COVID-19 pandemic has overwhelmed health systems worldwide, a new report brings together low-carbon and climate-resilient health solutions that can help protect the planet and individuals against future threats. The report, COVID-19 and Climate-Smart Health Care: Health Sector Opportunities for Synergistic Response to the COVID-19 and Climate Crises, provides a framework based on lessons from the global COVID-19 health response to help countries build stronger health systems and leapfrog toward climate-smart universal health coverage (UHC).
“While the ongoing COVID-19 crisis presents significant global health challenges, the pandemic also presents opportunities to build resilient climate-smart health systems against future shocks,” said Juan Pablo Uribe, Global Director for Health, Nutrition and Population, World Bank. According to the report, which was produced by the World Bank and the Climate Investment Funds (CIF), countries that have integrated their response to COVID-19 and the climate crisis have been able to find lower-carbon and more climate-resilient solutions that are beneficial not just to health systems, but also the environment.
Tech takes central role in climate change fight (Business Daily)
As the ongoing deliberations on achieving the Paris Agreement continue in Glasgow, Scotland, Artificial Intelligence (AI) is being touted as a potential tech tool in cutting global carbon emissions. Technology companies and governments have in the past five years been tapping on AI algorithms to inform decisions, predictions and recommendations by analysing climate patterns in various data sets. And now, a new report released by networks company Nokia and GSMA Intelligence indicates that communication service providers (CSPs) around the world believe that deploying AI software is essential to reducing fast-rising network energy demand and emissions, spurred by the internet traffic growth.
COP26 Climate Change Briefs (World Bank)
Tackling climate change will require major social, economic and technological changes, many of which are costly and will require large investments. To achieve our climate objectives, it will be critical to integrate climate and development and identify projects at the country level that tackle mitigation and adaptation and channel appropriate sources and structures of financing toward these projects in a manner that maximizes impact. This is a complex goal from both the financing and project side, and will need to build on mitigation and adaptation diagnostics that show the trajectory of emissions, the major vulnerabilities, and the best climate interventions. These are the pillars of the World Bank Group’s new Climate Change Action plan (CCAP), which we launched in April 2021, and in which we committed to increase our climate finance target to 35% of total commitments over the next five years, align our financing flows with the goals of the Paris Agreement, and achieve results that integrate climate and development.
Our series of COP26 Climate Briefs unpack the key priorities of our CCAP. We added to our set of core diagnostics the Country Climate Development Reports (CCDRs), which we are already rolling out in 25 countries. These reports will provide important data and diagnostics to identify and prioritize actions that meaningfully reduce GHG emissions and build adaptation and resilience.
International
Building back on better foundations through trade (ITC)
Members of the Joint Advisory Group (JAG) of the International Trade Centre (ITC) convened for its 55th session at the Palais des Nations and virtually on 2 November.
In his summary report, Chair H.E. Ambassador Paul Bekkers noted that Joint Advisory Group members commended ITC’s agile response to deliver much needed technical assistance during the COVID-19 pandemic, especially for small businesses, women, youth, and vulnerable communities. They expressed their approval for the results shown in the 2020 Annual Report and for the thrust of the Strategic Plan 2022-2025, which was presented during the meeting. Also shared were the findings of the Annual Evaluation Synthesis Report by ITC’s Independent Evaluation Unit.
Summarizing the members’ feedback on ITC’s work and future plans, she identified the following priorities: Keep “going green” in programmes, advocacy, operations. Help close the digital divide, to build more resilient economies through connectivity and empowered tech entrepreneurs. Continue strengthening women entrepreneurs. Show how ITC’s projects support the work of WTO and UNCTAD. Maintain focus on core constituency of least developed, landlocked, small island development states, small vulnerable economies, and conflict-affected countries.
DDG Zhang highlights importance of ITC-WTO collaboration for “positive trade outcomes” (WTO)
The UN climate change conference kicks off a busy November. Bookending the month, we have the WTO’s 12th Ministerial Conference from 30 November to 3 December.
With global trade contracting sharply and then rallying strongly, the private sector has needed a trusted partner to turn to get information. Supply chains were, and indeed remain, stretched in many essential products. Perhaps the most essential of these is of course COVID-19 vaccines, therapeutics and diagnostics. This is one area where I believe that the WTO’s 12th Ministerial Conference can achieve meaningful results. Unequal access to COVID-19 vaccines is holding back economic recovery in many parts of the developing world, in particular among the lowest income countries. Recovery in an essential segment of the global services economy — that is, travel and tourism services — is critical for many least developed and small economies.
DDG Ellard cites the importance of business involvement in reinvigorating the WTO (WTO)
WTO rules have slowed, and even prevented, countries from taking very damaging measures. And our Trade Facilitation Agreement, although not designed with the pandemic in mind, has played an outsized role in worldwide recovery. Countries that have embraced and rapidly implemented trade facilitating measures and infrastructure have generally proven more resilient, more adaptable, and better equipped to keep trade flowing despite COVID-19-related lockdowns, travel restrictions, and social distancing.
The COVID-19 pandemic, which brought the global economy to a standstill for a significant period. When the pandemic struck, production and consumption across the world scaled back, and international trade appeared to be on its way to a persistent decline. However, in the summer of 2020, global merchandise trade began to recover, and by the end of the year, it was strongly rebounding in many countries and sectors, but not all. In the first half of 2021, global trade continued to grow, 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 percent in 2021, followed by a 4.7 percent rise in 2022.
However, many developing countries are not experiencing the same economic growth pattern, and this trend is deeply concerning because the economic recovery rate is predicted to be faster for countries with higher vaccination rates. For many developing countries where vaccination rates are low — on average 3 percent — the path to recovery will be long and uncertain unless urgent measures are taken.
WTO agriculture negotiations at “critical juncture”, Chair tells delegation heads (WTO)
With less than five weeks until the WTO’s 12th Ministerial Conference (MC12), due to take place from 30 November to 3 December, the agriculture negotiations are at “a critical juncture”, the Chair of the Committee on Agriculture in Special Session, Ambassador Gloria Abraham Peralta (Costa Rica), noted at a meeting on 28 October. She stressed that WTO members “now urgently need clear political guidance” on questions where gaps remain.
Exports of intermediate goods gain momentum in Q2 with 47% year-on-year increase (WTO)
World exports of intermediate goods (IG), such as parts and components, rose by 47 per cent year-on-year in the second quarter of 2021, according to a new WTO quarterly report released to help track the health of global supply chains. The increase sustains the upward trend in IG exports recorded in the first quarter (20 per cent), during which IGs trade from most top exporters largely exceeded 2019 pre-pandemic levels.
Understanding Revenue Administration (IMF)
A major review of ISORA following the 2018 round recognized that, despite the value of the existing information to both the international partners and participating tax administrations, data quality could be further improved. In the future, the survey will comprise a far smaller set of annual questions for which data will be collected annually rather than biennially, together with periodic questions, and all survey data will be placed in the public domain. ISORA 2020 data, covering the 2018 and 2019 fiscal years, is planned to be released publicly toward the end of 2021.
Opinion | The U.S. and EU Shake Up Global Trade (Wall Street Journal)
The Group of 20 summit in Rome last weekend was highly unusual. Unlike most global gabfests, it actually mattered—not because the sterile G-20 format and the anodyne communiqués it predictably generated meant or accomplished anything of significance. It mattered because the U.S. and the European Union, sidestepping the G-20 process, unveiled a tentative trade agreement that significantly sharpens the competition with China, and because five G-20 heads of government (China, Japan, Mexico, Russia and South Africa) were absent, highlighting the declining importance of these ritualized displays of international comity. The most important news out of Rome had nothing to do with the G-20. The temporary trade deal announced by European Commission President Ursula von der Leyen and President Biden does more than put some of the Trump-era steel and aluminum tariffs and retaliatory measures on ice. It lays out a new approach to world trade that, if it takes hold, could usher in the most consequential changes to the international trade regime in half a century or more.
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National
NBI study sees role for gas in South Africa’s transition to low-carbon economy (Engineering News)
A new National Business Initiative (NBI) study offers support for gas as a transition fuel in South Africa’s shift from coal in the production of electricity and synthetic fuels (synfuels). The study stresses, however, that this role should be confined in the electricity sector to the provision of flexible balancing capacity for the country’s growing fleet of variable renewable-energy generators rather than to offer so-called baseload. In the manufacture of synfuels, meanwhile, it is regarded as a lower-carbon replacement for coal, until cleaner solutions, such as green hydrogen, are fully commercialised.
Poultry farmers innovate to overcome production hurdles (Business Daily)
“While most of our competitors in the East African region are afforded favourable tax regimes that spare feed ingredient and other inputs, Kenyan farmers do not enjoy similar advantages and this has continuously led to high costs of production that make poultry farming unsustainable,” Jim Tozer, the managing director at Kenchic notes.
Poultry farming used to be an enviable venture that churned out millionaires. Anyone with determination, passion and some capital was almost guaranteed to get good returns. That was then. Now, apathy exists among many Kenyan farmers, largely due to the overall increase of taxes over the last decade and higher costs of production that have seen returns continue to diminish with every passing year. Many farmers no longer find it an attractive venture, and for those still practicing, they have had to be innovative to bring down their cost of production that is among the biggest hurdles hampering growth.
Kenyan maize imports make up 58pc East Africa grains trade (Business Daily)
Kenyan maize imports account for 58 percent of the grain traded among East African countries between July and September, as poor weather affected the country’s production. Latest data from the Ministry of Agriculture shows that the country imported 155,610 metric tonnes of the grain in the period, followed by South Sudan at 114,660 metric tonnes. Tanzania contributed the most to the basket with 152,880 metric tonnes of exports (57 percent) while Uganda sold 117,390 metric tonnes of maize (43 percent) to Kenya and South Sudan.
Underwhelming rains in Kenya’s maize producing areas have affected production this year, with the Ministry of Agriculture projecting production will drop by 20 percent this year. To bridge the gap, the government in March lifted a ban on maize imports from Tanzania, which had been barred due for containing high levels of aflatoxin. The agriculture ministry said that the lifting of the ban saw imports rise nearly six-and-a-half times to 118,329 ninety-kilogramme bags in May from 16,137 a month earlier. “The above-average volume traded was supported by seasonal exports from Tanzania to Kenya as increasingly fresh supplies from the May-to-August harvest entered the market amid high demand in Kenya due to expectations of below average October-to-December harvest,” the United States Agency for International Development’s (USAID’s) Famine Early Warning Systems Network says in its latest report “While supply was above average across many countries in the region, it was below average in Uganda which accounts for 14 percent of the production but 31 percent of the tradable surplus because of reduced carryover stocks from the previous year’s below-average harvest.”
Mobile money deals up 42 percent on economic uptick (Business Daily)
Cash handled by mobile money agents in the nine months to September jumped by Sh1.47 trillion compared to a similar period last year, indicating the growing dominance of mobile money usage in the economy. Latest data by the Central Bank of Kenya (CBK) show agent transactions in the period rose by 41.5 percent to Sh5.02 trillion from Sh3.55 trillion in the same period in 2020.T he amount of money deposited or withdrawn in the nine-month period is almost equivalent to Sh5.21 trillion transacted in the 12 months to December 2020. The volume of transactions increased by 19.6 percent or 261.9 million times to 1.599 billion from 1.337 billion over the period, indicating increased activity with the agents. This is despite the economy still facing pandemic-induced struggles however, recovering.
Fishy business: Kenya, Uganda in new 300 tonnes fish dispute (The East African)
Kenyan traders say they are stuck with at least 300 tonnes of fish destined for export at the Ugandan border due to an ongoing row between Kampala and Nairobi. Early last month, officials from Uganda’s Fisheries Protection Unit (FPU) at the Mpondwe border, one of three major crossings between the country and the Democratic Republic of Congo, impounded five Kenyan trucks carrying fish destined for DRC. Mr Hassan Ahmad, a fish exporter, at the weekend said he delivered a truckload of salted fish from Lake Turkana in Kenya to the Busia-Kenya fish market, but none of his customers is willing to buy.
According to FPU, the fish impounded last month was immature and from Ugandan lakes, which had been smuggled to Kenya, processed and repackaged for export.
Mr Godfrey Oundo Ongwabe, the national cross-border trade chairperson in Uganda, said Kampala should have investigated allegations of smuggling immature fish before impounding the fish. “Uganda should first have investigated and then written a formal report to Kenya rather than moving to impound the fish,” he said. He further expressed fear that if the matter is not resolved, Nairobi might retaliate by targeting some Ugandan goods sold to Kenyans or goods imported and exported through the Kenyan territory.
Cameroon-India Growing: Trade Development Cooperation Celebrated (Cameroon Tribune)
Cooperation ties between Cameroon and India have witnessed a great bolster within the past two years during the tenure of the first-ever resident Indian High Commissioner to Cameroon, Rakesh Maholtra following the opening of the Indian High Commission in Cameroon. The cooperation ties were celebrated on October 29, 2021 during the State dinner offered on behalf of the Head of State, President Paul Biya by the Minister of External Relations Mbella Mbella in honour of High Commissioner Rakesh Maholtra who has come to the end of his diplomatic stay in Cameroon.
In terms of trade exchange between the two countries, Minister Mbella Mbella said they stand at 904.81 million US Dollars representing an increase of more than 73 per cent. He said during the High Commissioner’s stay at the helm of the Indian diplomatic mission in Cameroon, India contributed much to socio-economic grow the of the country in the domains of public health, agriculture and energy.
SON Unveils Standards to Checkmate Rejection of Nigeria’s Agro Commodities (This Day)
The Standards Organisation of Nigeria (SON) has introduced fresh standards to combat the high level of rejection faced by Nigeria’s agricultural commodities at the global markets. The move according to the standards body is apt and timely to make Nigeria agro commodities competitive at the international markets, especially with the introduction of African Continental Free Trade Agreement (AfCFTA).
The Director General, SON, Mallam Farouk Salim, stated this on the sidelines of the visit of SON Governing Council to audit SON’s facilities in Ogba area of Lagos. According to him, most of the times when Nigerian goods are rejected, it is due to failing to go through standard procedure locally before exporting to other countries, saying that as long as exporters continue to ignore local available standards, their products would continue to be rejected.
He added: “Exporters do not check the standards of the country they are exporting to so as long as our exporters ignore our standards, they will still have their products rejected, but if they follow the procedures, we are here to partner and assist them to make sure that their products are accepted globally.” “If the exporters come through us and they follow the standards of our country and they follow the standards of the country they are exporting to, then they should not have a problem,” he assured.
More boost for Dar Port efficiency as new equipment arrive (Dailynews)
EFFORTS to up efficiency of the Dar es Salaam Port got major boost as the port Tuesday started receiving modern work equipment purchased from 210bn/- that the government had disbursed for that purpose. The received facilities were seven Reach Stackers, three pilot boats and one large crane all worth 27bn/-. Works and Transport Minister Prof Makame Mbarawa noted that more other equipment have been ordered and will be arriving in the country between now and June next year. The move is to ensure that the country’s largest port gets enough tools for increasing operational efficiency, said Prof Mbarawa when officiating receiving of the new equipment at the port in Dar es Salaam. Prof Mbarawa said the investment made by the government was reforming the port and helping it to handle more cargo.
TZ, UK eye trade growth (Dailynews)
PRESIDENT Samia Suluhu Hassan has expressed the government’s commitment to forge stronger ties with the United Kingdom, in the promotion of trade between the two countries. She pointed out that the two countries have continued to enjoy long standing business relations, noting that the UK is among the largest investors in Tanzania.
On his part, Lord Walney said their meeting has equipped him with knowledge on the various priorities set by the government of Tanzania and eased his task of promoting trade and investment. He pointed out that the information has better positioned him to encourage more UK business people to invest in Tanzania’s trade and tourism sectors. The UK Prime Minister Borris Johnson’s Special Envoy said the goal of meeting with President Samia focused on introducing himself, as Tanzanians important links with the UK in trade, investment and tourism. UK Trade envoys are parliamentarians appointed by the prime minister, drawn from across the political spectrum. The roles are unpaid and voluntary.
“So, Tanzania is part of these developing countries that is going to receive these funds because our leaders participate in these conferences and contribute and look at what opportunities our country could benefit from,” Msigwa said. The industrialised nations have committed to allocate 100 billion US dollars to help in addressing issues of climate change in different developing countries, including Tanzania.
Inside Ethiopian Airlines’ plan to dominate African skies (The East African)
Ethiopian Airlines is establishing its presence in more than six African countries through a management role or strategic partnership with the local carriers, making it a dominant player in the continent. The move is set to give East African carriers such as Kenya Airways (KQ) a run for their money. KQ will particularly feel the pinch as increased competition will likely make it harder for the carrier, which is in a deep financial mess, to fly back to profit territory, not to mention its goal of
Customs officers tasked to meet revenue target (Ghanaian Times)
The Commissioner of the Customs Division of the Ghana Revenue Authority (GRA), Colonel Kwadwo Damoah, has charged customs officers to work ceaselessly at their various duty posts to meet or exceed their target without compromise. He, therefore, charged customs officers to fasten their belts and work ceaselessly at their various duty posts to raise or exceed the amount without compromise.
“As you go to your various revenue collections and stations, I charge you to display ethical behaviour, good and exemplary conduct, and remember that the behaviour you exhibit in your interaction with our stakeholders will project GRA positively or negatively,” Colonel Damoah cautioned.
FG promises investors 100% ownership of investments in solid minerals sector (Nairametrics)
The Federal Government has promised 100% ownership of investments to investors who invest in Nigeria’s mining sector. The government said that the idea of allowing both local and foreign mining investors to own 100% of mineral mined is part of its incentives to attract investors into the mining sector. This was made known by the Minister of Mines and Steel Development, Mr Olamilekan Adegbite, while briefing newsmen on the forthcoming 6th edition of the Nigeria Mining Week on Tuesday in Abuja. The 2021 Mining Week which is expected to hold from November 16 to November 17, has the theme: “Seven reasons to invest in Nigerian Mining”.
CBN disbursed N145 billion under its non-oil export stimulation facility (Nairametrics)
The Central Bank of Nigeria has disbursed a total of N145.99 billion under its Non-Oil Export Stimulation Facility (NESF).
According to the CBN, “The Bank has disbursed a total of N145.99 billion under its Non-Oil Export Stimulation Facility (NESF). The CBN has revised the guidelines, working with Nigerian Export-Import Bank to improve access to the intervention and stimulate non-oil export growth in Nigeria.” The apex bank has also played a substantial role in the development of the real sector, as it stated that, “Under the Real Sector Facility, the Bank released the sum of N1.00 trillion to 269 real sector projects, of which 140 are in light manufacturing, 71 in agro-based industry, 47 in services and 11 in mining.”
Nigeria needs $1.5 trillion to close Infrastructure deficit in ten years - Buhari (Nairametrics)
President Muhammadu Buhari has stated that Nigeria requires the sum of $1.5 trillion in ten years to close its infrastructure gap.
‘‘My administration has established a clear legal and regulatory framework for private financing of infrastructure to establish a standard process, especially on the monitoring and evaluation process. ‘‘We look forward to working with you in this regard,’’ Buhari said. He revealed that his administration is committed to infrastructure expansion in Nigeria, adding that new investments in critical sectors of the economy would aid in lifting 100 million Nigerians out of poverty by 2030. ‘‘There is a nexus between infrastructure development and the overall economic development of a nation.
What a tiny African country can teach us about climate action (WEF)
One country is doing what’s necessary to limit the destruction delivered by climate change. But you may have to squint to see it on a map. According to the Climate Action Tracker, as of September The Gambia was the sole nation taking steps in line with the Paris Agreement – which is meant to help all nations stave off imminent catastrophe.
What’s important is that The Gambia has specific plans to do its fair share to fix the problem – like changing the ways it cultivates rice, and how it manages the livestock that accounts for 11% of its emissions. That shouldn’t make it unique, but it does. The world’s mostly failing to make concrete changes needed to avert calamity, according to a recent report, and wealthy countries are being urged to do more as the COP26 climate summit gets underway.
Agricultural value chains will be a key lever for inclusive growth in The Gambia to address development challenges and combat fragility, according to the Country Strategy Paper (CSP 2021-2025) published by the African Development Bank. The Bank intends to support The Gambian government’s efforts to reduce food insecurity from 37.2 percent in 2020 to 30 percent in 2025, reduce the incidence of poverty in rural areas from 69.5 percent to 63 percent over the same period, and help rebuild following Covid-19. Investments are planned under the Global Agriculture and Food Security Program for $17.31 million, while $21.45 million is to be invested in the staple crop processing area. This funding, which is supported by the private sector, will help transform subsistence agriculture into a commercial activity. This transformation will help the country to gradually reduce its dependence on food imports that erode the country’s scarce foreign exchange reserves.
App improves mine security in DRC (Africanews)
Mining is an important activity in the Democratic Republic of Congo but there are security risks. Every year accidents and landslides claim dozens of lives. With a view to reducing mortality rates, a local entrepreneur created an app that allows mine managers to follow the movements of those working in the pit.
Victoire Shukuru is the founder of Min Security app and explains how it works: “Every time a digger wants to go down the pit, he wears a belt which has a GPS system that facilitates the mine managers seeing all the movements of the diggers underground. But also, thanks to the same belt, we can see the variation of the temperature underground, which allows the mine manager to see the highest variation in temperature and enables him to send oxygen to rescue people underground,” said the entrepreneur.
Africa
AfCFTA Must Prepare for Data Security, Say Experts (This Day)
The need for data security in the African Continental Free Trade Area (AfCFTA) has been stressed by experts in cybersecurity. This was one of the resolutions at the second (Virtual) Africa Data Security Conclave (“the Conference”) which held recently with over 200 attendees from various African countries and the rest of the world.
One of the experts, Abiola Sanni (SAN), Professor of Law at the University of Lagos and Chairman, Board of Directors of Taxaide Technologies Limited (Taxtech), stated that “it is no gainsaid that the world’s largest economic free trade area that the AfCFTA has created needs to be fully conscious of the data security issues that awaits it, especially in the aspects of its Trade in Intangible Services and the attendant consumption of personal data in the zillions of bytes. Along with the challenges are also the opportunities for Governments, Citizens, Businesses and Practitioners alike; all of which we seek to fully explore in this year’s Conference.”
This year’s conference was themed: Data Security Considerations for a Continental Free Trade Area: The Challenges and Prospects.
African Development Bank and AfCFTA Secretariat partner to stimulate industry (AfDB)
African Development Bank Group President, Dr. Akinwumi A. Adesina, said on Friday that the Bank will integrate the African Continental Free Trade Area (AfCFTA) into its country and regional integration strategies.
Receiving AfCTA Secretary-General Wamkele Mene, in Abidjan on 29 October, Adesina said “the implementation of the free trade area will become a key component of the Bank’s lending program. We want to have a critical mass of AfCFTA-aligned investments.”
Adesina said the Bank would support the AfCTA Secretariat in implementing its various trade and industrial initiatives and programmes. “We have a responsibility to ensure that that the African Continental Free Trade Area is an industrial hub. The zone should become an area for manufacturing, not merely for trading,” Adesina stressed. He said the Bank would work closely with the AfCTA Secretariat to ensure that Africa produces at scale. “We require a large industrial manufacturing zone that generates income and competes on a local and global scale,” the African Development Bank chief said. Mene said the Secretariat would help member states remove trade barriers to boost intra-African trade. “But we cannot do so without the support of the African Development Bank,” he said, explaining … “we would just be a trading hub with no real output.”
Second Intra-African Trade Fair (IATF2021) ready to welcome the business community (Afreximbank)
The 12th meeting of the IATF2021 Advisory Council, held virtually on 22 October 2021 and chaired by His Excellency Chief Olusegun Obasanjo, Chairman of the IATF2021 Advisory Council and former President of the Federal Republic of Nigeria, reviewed progress on final preparations for the second Intra-African Trade Fair (IATF2021), which runs from 15 to 21 November 2021.
IATF2021 provides a platform to promote trade under the AfCFTA. It will bring together continental and global buyers and sellers, and will enable stakeholders to share trade, investment and market information as well as trade finance and trade facilitation solutions designed to support intra-African trade and the economic integration of the continent. In addition to establishing business-to-business and business-to-government exchange platforms for business deals and advisory services, IATF2021 also operates IATF2021 Virtual, an interactive online platform that replicates the physical event. IATF2021 will also focus on Africa’s creative economy as well as the automotive industry with dedicated programmes. A conference will run alongside the exhibition and will feature high-profile speakers and panellists addressing topical issues relating to trade, trade finance, payments, trade facilitation, trade-enabling infrastructure, trade standards, industrialisation, regional value chains and investment.
Boosting inter and intra-African trade: Imperative to agri-food systems transformation - Ethiopia (ReliefWeb)
Trade integration can contribute to agricultural transformation, while combating food insecurity and malnutrition, underscored participants of the capacity development programme on market access. Participants of the programme, drawn from national agencies responsible for market access, noted that improved compliance with regional and global regulations and sanitary and phytosanitary (SPS) measures would be the most important factor for the realisation of Ethiopia’s desire to expand regional and global markets for its agricultural products.
Deliberating on the methods to develop a structured approach to bilateral and multilateral trade engagements, participants agreed to establish a dedicated multi-sectoral team of experts consisting of state and non-state actors to foster regional and global market access for Ethiopia’s agricultural products. The team of experts also devised strategies to work with the National Plant Protection Organization (NPPO) and other agencies to boost capacities needed for the national trade initiatives.
With the ratification of the African Continental Free Trade Area (AfCFTA), Seid further said, there would be an increased focus on the need to boost intra-African trade. This, in turn, would spur the spread of animal and plant pests and diseases, calling for sound sanitary and phytosanitary (SPS) measures. Therefore, the government of Ethiopia and FAO would work together to enhance the capacities of regulatory authorities to assess pest risks in agricultural commodities and employ proper SPS measures that mitigate those risks, stressed Seid.
Fresh Call to Regional States to Implement COVID-19 Trade Facilitation Guidelines (COMESA)
A fresh call has been made to COMESA countries to ensure full implementation of the guidelines for the movement of goods and services that was developed last year to facilitate regional trade during the Covid-19 pandemic. Zambia Minister for Commerce, Trade and Industry Hon Chipoka Mulenga told delegates attending the 42nd COMESA Intergovernmental Committee virtual meeting from 02 – 04 November 2021, that supply chains are still constrained and prices for inputs and consumables are rising in Member States. “Our countries have now started to experience the negative impact of Covid-19 induced disruptions of supply chains and weakening demand levels in our trading partners as our trade volumes are showing marked declines,” said the Minister.
Data from COMESA Statistics indicates that the value of intra-COMESA total exports declined by 11% from US$ 10.9 billion in 2019 to US$ 9.7 billion in 2020. Similarly, the value of COMESA’s total exports to the world decreased by 27% from US$ 123.4 billion in 2019 to US$ 90.3 billion in 2020.
Minister Mulenga urged the 21 Member States to start strategizing on how to maintain the balance between the need to keep markets open while safeguarding the legitimate public health interests of Member States.
COMESA Summit Takes Place on 23 November (COMESA)
The 21st COMESA Heads of State and Government Summit will take place on 23 November 2021. Consequently, a new Summit theme has been developed to rally Member States on the focus area in the implementation of regional integration programmes.
The theme is: “Building Resilience Through Strategic Digital Economic Integration,” and was motivated by the emerging regional and global economic and trade dynamics which have impacted heavily on the COMESA regional integration agenda, such as the COVID-19 Pandemic. It is expected to rally Member States on how to safeguard and advance the COMESA regional integration agenda using digital platforms given the uncertain nature of shocks.
Burundi sets sight on EAC to lift economy (The East African)
Burundi, currently under European Union sanctions over its human and political rights record, is asking its East African neighbours to help unlock its economic development potential. Last week, Burundian President Evariste Ndayishimiye toured Tanzania on a three-day state visit to strengthen trade and investment. This was just three months after Tanzanian President Samia Suluhu paid a state visit to Burundi, resulting in several new infrastructure projects, including the construction of roads, and a renewed focus on the mining sector. During last week’s visit, the two countries signed multi-billion dollar infrastructure projects, among them the construction of the standard gauge railway that will connect three countries up to the Democratic Republic of Congo, but whose financing is yet to be finalised.
Uneca unsure EAC is ready for 2024 monetary union target (The East African)
Divergent monetary policies within the East African Community in the pre-pandemic era raise questions regarding feasibility of a monetary union as envisioned in the 2013 protocol on the establishment of a monetary union targeting adoption of a common currency by 2024. This is one of the issues raised by a report by the United Nations Economic Commission for Africa, Uneca, titled Macroeconomic and Social Developments in East Africa 2020. “It is critical to examine how economies are converging before forming a monetary union. The assessment includes ceilings for headline inflation, fiscal deficit, a gross public debt and a sufficient level of foreign exchange reserves,” says the report prepared under the guidance of Uneca’s Senior Economic Affairs Officer, Andrew Mold.
AfDB projects economic growth in 13 African countries (The East African)
Economies of Tanzania, Kenya, Uganda and other East African countries are projected to grow by 4.1 percent this year, up from 0.4 percent in 2020, African Development Bank (AfDB) has said. The bank’s East Africa Regional Economic Outlook 2021 released on October 28 says the increased growth rate in the 13 economies including Seychelles, Somalia, South Sudan, Sudan and Ethiopia is attributed to the ongoing global economic recovery. “East Africa is the only region on the continent that avoided a recession in 2020,” reads the AfDB report.
Commodity exporters such as Tanzania have been slightly resilient during the pandemic due to export price increases in commodities, particularly gold. Countries that depend highly on tourism like Seychelles and Zanzibar have been hit hardest. Kenya and other countries with more diversified economies have experienced lower impacts of the pandemic. Generally, “East Africa is experiencing a progressive change in the composition of GDP, from predominantly agriculture to services. But the transition to higher value-added economic activities which signals structural transformation has been slow,” says the AfDB. In 2020, East Africa’s fiscal deficits widened as a result of increased public spending in response to Covid-19 amid falling domestic revenues, as domestic containment measures and disruptions in global supply chains took a toll on the region’s economies.
Africa needs to vaccinate 70% of its population by the end of 2022 to have a chance of controlling the #COVID19 pandemic (African Union)
As the African continent continues to battle with the SARS-CoV-2 (COVID-19), questions about COVID-19 becoming ‘endemic’ are rising among health experts and the population across the region. For much of the past two years of the pandemic, the African Union, through Africa Centres for Disease Control and Prevention (Africa CDC), and the African Vaccine Acquisition Trust (AVAT) have been at the forefront and have led the fight against coronavirus by helping member states acquire and distribute vaccines.
“It will take us much longer to control Covid-19 on the continent than we previously thought because of the very limited rates of vaccination that we have. We have only successfully vaccinated 5.5% out of the 1.2 billion people on the African continent and that is not good a position of controlling and eliminating the virus. We are getting to a point where elimination or effective control of the virus is becoming more challenging because of the slow pace at which vaccination is occurring in Africa,” said Dr. John Nkengasong, the Director of the Africa CDC during a weekly news COVID-19 media conference on 28 October 2021.
How Innovation And Emerging Technologies Are Addressing Plastic Waste Pollution In Africa (AUDA-NEPAD)
Africa’s rapid population growth, augmenting socio-economic activities, and ever-expanding urbanisation has led to the increased production and utilisation of plastic products.[1] Plastic pollution is caused by the accumulation of plastic waste in the environment[2] and has become one of the most pressing environmental concerns across the African continent. This is due in part to the high production of disposable plastic products that have overwhelmed the continent’s ability to dispose of them properly. Unfortunately, their incremental utilisation and production is void of efficient disposal infrastructure and management systems.
Several African countries have been increasingly reducing plastic pollution by adopting and implementing sustainable plastic waste management systems. This is accomplished by leveraging new plastic waste management technologies; thereby, protecting the environment.
Invest on infrastructure, Raila Odinga tells African nations (Nation)
The African Union (AU) High Representative for Infrastructure Development in Africa, Raila Odinga is calling on African Nations to invest in infrastructure as a lifeblood of economic recovery post Covid-19. The ODM leader also underscored the need for African nations to safeguard democracy as a way of creating stability and predictability on the continent.
“With regard to infrastructure, Africa must see this as its Roosevelt Moment; the moment for the continent to invest in opening the arteries of transportation, of movement of goods and people; the moment to invest in infrastructure as a lifeblood of economic recovery,” Mr Odinga said.
He noted that the recovery programme must build strongly on the African Continental Free Trade Area. The dream of enabling free movement of goods, he noted, will not be fully realised unless it is accompanied by freer, easier and cheaper movement of people as well. “That calls for faster ratification of the AU’s Continental Free Movement Protocol by all, and, more importantly, for investment in infrastructure,” said the former Prime Minister. He pointed out that it was time to complete the bridges and highways to connect African countries and tap into its markets.
China commits to support EAC integration (The Star)
China has reaffirmed its commitment to supporting the East African Community (EAC) achieve regional integration by promoting its development projects. The Chinese Ambassador to Tanzania and EAC, Chen Mingjian, made the commitment while presenting her letter of credence to the EAC Secretary General, Peter Mathuki, at the EAC Headquarters in Arusha, Tanzania. Mathuki lauded China for her immense support to the region, particularly through infrastructure development projects geared at enhancing intra-EAC trade.
Agoa: Biden revokes trade preferences for Ethiopia over Tigray violations (Nation)
US President Joe Biden said Tuesday he was revoking key trade preferences for Ethiopia, ramping up pressure on its historic ally over rights concerns in its military campaign in restive Tigray. In a notice to Congress, Biden said he was also terminating coup-hit Guinea and Mali from the African Growth and Opportunity Act (Agoa), the landmark 2000 pact that removed US duties on most exports from sub-Saharan Africa if they adhere to good governance and rights standards. Ethiopia’s eligibility will end as of January 1 due to “gross violations of internationally recognized human rights,” Biden said.
Ethiopian officials in recent weeks have led a pressure campaign against removal from Agoa, warning of the consequences, especially over the country’s manufacturing sector.
COP 26 special
State of Climate in Africa Report 2020 (UNECA)
The State of the Climate in Africa Report 2020, which is the second in a series covering Africa, was released last week. The new report indicates that Africa will continue to face the challenges of increased droughts, intense and stronger heat waves, storms, rising sea levels, melting glaciers, floods, cyclones and wildfires. “By 2030, it is estimated that up to 118 million extremely poor people will be exposed to drought, floods and extreme heat in Africa, if adequate response measures are not put in place.” Josefa Sacko, the AU Commissioner for Rural Economy and Agriculture says in the report’s forward.
“The WMO has decided to be publishing regional climate reports. This is the second time that we have published the report for Africa. For us Africa is a special case. It is the most vulnerable when it comes to climate variation and climate change given that agriculture is an important part of African economies in terms of employment and even survival.” Tallas says. “We have special focus for Africa when it comes to development activities as we have been discussing means to enhance the observational capacities and services skills of African meteorological services.”
The COP26 Africa Needs (Project Syndicate)
Almost two years into the COVID-19 pandemic, the unequal nature of the global response to the crisis is glaringly obvious. Whereas very few African countries have managed to spend the equivalent of even 1% of their GDP to combat this virtually unprecedented health emergency, Western economies have mustered over $10 trillion, or 30% of their combined GDP, to tackle it. Europe and the United States have fully vaccinated, respectively, 75% and 70% of their adult populations against COVID-19, but fewer than 6% of Africans have been vaccinated. And while some Western countries are already administering booster shots, Africa cannot get initial doses.
As world leaders head to Glasgow for the United Nations Climate Change Conference (COP26), Africa needs decisive collective action rather than more encouraging words. We therefore propose a strategic financial and trade package that can transform climate inequality into inclusiveness by ensuring a transformative shift of resources from historic greenhouse-gas (GHG) emitters to Africa.
Our plan rests on four pillars. First, developed economies must keep the promise they made in the 2015 Paris climate agreement to deliver $100 billion per year to help cover developing countries’ adaptation and transition costs. After all, the commitments that developing countries made in Paris were conditional on this pledge. Failure to fulfill this overdue commitment now, with half of the $100 billion earmarked for adaptation costs, will undermine the very principle of multilateral action. It is a provision in an international agreement, and it must be honored.
DG Okonjo-Iweala highlights trade’s role in ambitious and just climate action at COP26 (WTO)
The Director-General highlighted trade and the WTO’s role in a wide breadth of approaches to climate action in her panels and bilateral meetings, covering carbon emission reductions, the conservation of forests as critical carbon sinks, climate adaptation, and finance.
On carbon reduction and pricing, she championed a coordinated approach at the high-level event organized by Canada and the Carbon Pricing Leadership Coalition, saying: “Let’s move towards a global carbon price. We have a great deal of fragmentation and we are hearing increasingly from businesses that they are finding regulations difficult to navigate and sometimes it results in higher prices for consumers and others. We also have members who are afraid this measure is somehow disguised protectionism which will prevent them from selling products abroad. Their issues need to be respected as we develop these systems.”
At the Africa Adaptation Acceleration Summit, moreover, the Director-General said: “Adaptation for Africa must be a priority for the international community. This region contributes the least to emissions but suffers the most. Climate finance for Africa to meet adaptation costs must be ramped up.” “We also need to put in place trade policies to cushion against and adapt to the negative impacts of climate change. Trade is part of the solution,” she said, noting the need for trade to ensure food security in the face of climate threats, provide access to adaptation technologies, and create synergies in Aid for Trade and climate finance. The Director-General will also underline the importance of support for developing countries and least developed countries (LDCs) at the 3 November event organized by the United Kingdom on mobilizing climate finance.
COP26 opens in Glasgow with calls for ambitious solutions to tackle climate emergency (UN News)
With the official opening of the two-week conference coming hours after preliminary climate talks among world leaders at the G20 summit in Rome saw meager forward movement, and the release of a key report from the UN weather agency, WMO, warning that the past seven years are set to be the hottest on record, and our planet is heading into “uncharted territory”, the stakes for COP26 couldn’t be higher.
Upon his departure from Rome, UN Secretary-General António Guterres said in a tweet that while he welcomed the G20’s recommitment to global solutions, he was leaving the summit with his hopes unfulfilled.
Mr. Guterres is addressing the COP26 World Leader’s Summit, which brings together Heads of State and Government, civil society and business leaders, who have been invited to set out the ambitious actions they are taking to reduce emissions, scale-up adaptation and mobilize finance, and to signal their commitment to ensuring that COP26 keeps 1.5°C in reach.
Guterres urges developed countries to deliver on climate pledge for vulnerable nations (UN News)
“I compare this meagre sum with the trillions being spent on COVID-19 recovery by developed countries”, he said. António Guterres was speaking at the High Level Climate Vulnerable Countries Leaders’ Dialogue, Tuesday, during the UN’s COP26 climate conference.
Speaking to journalists, the United Kingdom’s Prime Minister, Boris Johnson, said that “further action from countries around the world” was needed to make that happen; John Kerry, US President Joe Biden’s special envoy on climate change, confirmed this intention. “I urge the developed world to accelerate delivery on the $100 billion dollars to rebuild trust”, Mr. Guterres said.
The Secretary-General stressed the importance of these investments saying that adaptation works, early warning systems spare lives, and climate-smart agriculture and infrastructure save jobs.
Currently, just a quarter of these funds go towards adaptation, around $20.1 billion. It is estimated that the adaptation costs to developing countries could rise to as much as $300 billion dollars a year by 2030. Mr. Guterres argued that vulnerable countries must have faster and easier access to finance. He believes that could be achieved by reducing red tape, increasing eligibility thresholds and offering debt relief.
G20: Actions now to feed the world and save the planet, urges FAO (FAO)
Policy makers must find a way to “feed the world and save the planet at the same time,” QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO), said at the G20 Leaders Summit in Rome on Sunday. “Climate change will compromise our ability to produce sufficient amounts of nutritious foods and increase poverty and deepen inequalities,” Qu warned, on the eve of COP climate conference in Glasgow.
Agri-food systems around the world are being threatened by a hosts of factors ranging from civil conflicts to biodiversity loss, and the COVID-19 pandemic has made things worse, pushing more than 800 million people into chronic hunger, while another 3 billion cannot afford healthy diets, the Director-General said. We are not on track to limit global temperature rise to 1.5 degrees, he said.
With just nine agricultural seasons until the 2030 target date for the Sustainable Development Goals, “the urgency for climate action is stronger than ever,” the Director-General told the G20 leaders. ”Politicians need to take stronger leadership, People need to take the ownership and all society must work in coherent partnership based on science and innovation.”
Emerging Markets Accelerate Sustainable Finance to Address Climate Change and the SDGs (IFC)
A new report from the IFC-facilitated Sustainable Banking and Finance Network (SBFN) highlights the efforts of forty-three emerging economies to accelerate national sustainable finance policies and prepare the financial sector to address climate change. Collective action between regulators and industry associations across the financial sector has emerged as an essential strategy to harmonize good practice expectations, disclosure requirements, and definitions of sustainability-focused activities that help address environmental, social and governance (ESG) risks and opportunities in all financial sector activities.
The report recommends that countries fast-track the development of climate risk guidance and tools to enable regulators, industry associations, and financial institutions to assess, monitor, and report on climate risk and financial impacts in line with international practice.
Global Carbon Pricing Can Reduce Emissions and Pay For Itself (WEF)
A new report, Increasing Climate Ambition: Analysis of an International Carbon Price Floor, found that global carbon pricing could pay for itself while cutting emissions. Written by the World Economic Forum and PwC, the report models the impact of an ICPF as proposed by the International Monetary Fund (IMF). If all regions and sectors participate, an International Carbon Price Floor (ICPF) for carbon dioxide and other greenhouse gas emissions could reduce global carbon emissions by up to 12.3% by 2030. Although carbon pricing might at first reduce global GDP (by less than 1%), any such costs would be offset by avoided losses in GDP due to global warming. This is compared to the world economy shrinking by 18% and global temperatures rising by over 3°C if actions are not taken now.
International
Global business tells G20 leaders: don’t repeat past mistakes on vaccine access and sovereign debt (ICC)
On the eve of this weekend’s leaders’ summit in Rome, ICC Secretary General John W.H. Denton AO said: “It’s vital G20 leaders wake up to the fact that no country is immune to the economic risks posed by the continued spread of Covid-19 in the developing world. Vaccine inequality is, ultimately, the root cause of the supply chain disruptions that are already placing a major drag on global growth.
“The economic logic for coordinated G20 action to get 70 percent of the world’s adult population vaccinated by early next year isn’t just theoretical – the effects of vaccine inequality are being felt by businesses, workers and families in the real economy every day. Allowing the virus to remain unchecked across much of the globe will only lead to more production shortfalls, logistical logjams and yet higher prices at the till. The time for the G20 to act decisively is now.”
Mr Denton also urged G20 leaders to commit to urgent action to address the debt burden faced by many developing nations: “It’s deeply worrying that the debt service suspension agreed by the G20 early last year will expire in just two months – right as many emerging economies are showing increased signs of debt distress. It’s high time for G20 leaders to acknowledge that their “common framework” to allow countries in need to restructure their debts isn’t working.
The heads of the International Monetary Fund, World Bank Group, World Health Organization and World Trade Organization met to discuss strategies to accelerate the supply and deployment of COVID-19 vaccines, especially in low- and lower middle-income countries. The Multilateral Leaders Task Force (MLT) issued the following Joint Statement: The global rollout of COVID-19 vaccines is severely off track, resulting in a sharp divergence between rich and poor countries. Of the 7 billion vaccine doses administered globally, only 35 million doses, or 0.5%, have been administered in low-income countries. In advanced economies, over 60% of the population is fully vaccinated, with some now receiving booster shots, while less than 2% of the population in low-income countries is fully vaccinated.
The pandemic remains the biggest risk to economic health, and its impact is made worse by unequal access to vaccines, tests, treatments, and PPE.
Trade has an essential role in ensuring the scale up of vaccine production and access to critical health related goods and inputs. We continue to work with countries to address finance, trade, and regulatory barriers that pose constraints to the supply and equitable delivery of vaccines. With the WTO’s 12th Ministerial Conference approaching at the end of November, we strongly urge its members to ensure that the multilateral trading system fully supports efforts to address current and future pandemics.
Urgent action, especially by the G20, is needed now. A failure to act could mean COVID-19 will have a prolonged impact into the medium-term, which could reduce global GDP by a cumulative $5.3 trillion over the next five years and lead to five million additional lives lost.
WTO members review three RTAs, receive update on Transparency Mechanism (WTO)
The parties to the Free Trade Agreement between the European Union (EU) and Viet Nam said their agreement, which was concluded on 30 March 2020 and entered into force on 1 August 2020, is a new-generation, high-standard and ambitious free trade agreement (FTA) with a wide range of coverage and advanced level of commitment, from traditional trade issues to modern ones. Viet Nam said that since the Agreement entered into force, it has been making efforts to promote institutional reform and transparency and build an open and favourable trade investment environment for businesses from both sides.
Members exchange view on measures, practices at Anti-Dumping Committee meeting (WTO)
The Committee reviewed new notifications of legislation submitted by Colombia, India and the United Kingdom. It continued its review of the legislative notifications of Cameroon, Ghana, Kenya, Liberia, Peru, and Saint Kitts and Nevis.
Questions were raised by several delegations regarding actions contained in the semi-annual reports submitted by Brazil, Canada, China, Egypt, the European Union, India, the Republic of Korea, Philippines, South Africa, Thailand, Ukraine, the United Kingdom and the United States. In addition to the semi-annual reports, the WTO’s Anti-Dumping Agreement requires members to submit without delay — on an ad hoc basis — notifications of all preliminary and final anti-dumping actions taken. Ad hoc notifications reviewed during the meeting were received from Argentina, Australia, Brazil, Canada, China, the Dominican Republic, the European Union, India, Indonesia, Japan, Kazakhstan, the Republic of Korea, the Kyrgyz Republic, Mexico, New Zealand, Pakistan, Philippines, the Russian Federation, South Africa, Chinese Taipei, Turkey, Ukraine, the United Kingdom and the United States.
Related News
COP 26 UN Climate Change Conference: Resources
Background
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 on 13 November 2021 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.
On this page:
Outcomes and reactions
COP26 Reaches Consensus on Key Actions to Address Climate Change (UN Climate Change)
CoP26: A ‘net nothing’ summit that the UN termed a global compromise (Down to Earth Magazine)
No breakthrough in Glasgow: Developed countries do not take responsibility for damage done (Care International)
Climate action can deliver a sustainable future for all: UN deputy chief (UN News)
COP26: Leaders’ catastrophic failure on climate shows they have forgotten who they should serve and protect – humanity at large (Amnesty International)
Draft outcome documents
pdf Glasgow Climate Pact: Proposal by the President (189 KB)
pdf Draft COP decision proposed by the President (121 KB)
pdf Draft CMA decision proposed by the President (140 KB)
pdf Draft COP decision on long term climate finance (78 KB)
pdf Gender and climate change: Draft conclusions proposed by the Chair (126 KB)
Climate-related reports
World Meteorological Organization (WMO)
Africa NDC Hub
United Nations Framework Convention on Climate Change
Intergovernmental Panel on Climate Change (IPCC)
United Nations Development Programme
Food and Agriculture Organisation of the United Nations (FAO)
FAO and International Renewable Energy Agency (IRENA)
Christian Aid
United Nations Environment Programme
United Nations Environment Programme
United Nations Environment Programme
Oxfam International
Germanwatch
United Nations Framework Convention on Climate Change
World Bank
COP 26 and Africa: in the news
Africa must finance its adaptation, $100 billion commitment or not, experts say (AfDB)
Climate finance for a transition away from coal: a chance to change history in South Africa (The Conversation)
Renewable energy in Africa: Update in the era of climate change (JD Supra)
COP26 Climate Summit Not Hearing Africa’s Concerns (OilPrice)
Group calls for realistic energy transition goals in Africa (Trade Arabia)
Funding Africa’s $2.8tr net-zero transition by 2050 a ‘pressing issue’ (Engineering News)
The COP26 Africa Needs (Project Syndicate)
Daily highlights
tralac Analysis
Four outcomes stand out:
The first was interesting for the wrong reasons. It came when thirty countries promised to phase out petrol and diesel-powered cars by 2040 (though the US, China, Japan and Germany didn’t). A number of major manufacturers – including Ford, GM and Mercedes – have pledged commitments too (though many of the major firms, including VW and Toyota, didn’t). The appeal of oil based fuels is clear: they are energy dense, use well known technologies, and rely on existing infrastructures. Classic path dependence. Without American, Japanese and Chinese support, and with all the hedges in the pledges, and with the agreement being non-binding, one has to ask, ‘why was it received with such hoopla?’
The second was much more heartening: the US/China bilateral agreement. These are the two biggest emitters, and two countries with very different relationships between government and business. Although received with much acclaim, it’s worth noting that China said it would only begin to cut its coal consumption five years into the future, in the period 2026-30 (its next five year plan), while the US offered a fifteen year wait for totally carbon neutral electricity by 2035. More positively though, they did have fairly detailed agreements on methane, and a very detailed one on improving electricity reticulation to make fuller use of “low-cost intermittent renewable energy”, i.e., solar and wind power.
The third was the draft agreement process. The agreement itself looks, at first glance, like the usual collection of bland reaffirmations. So why did it have to go through three iterations during the week, and eventually run into extra-time on Saturday? There’s no doubt that the COP critics will describe it as a failure, so what was it that warranted such heated debate? All COP final statements require consensus, but even so, a few points stood out. One was section III on adaptation finance. This requires that, by 2025, developed countries should have doubled transfers intended to subsidise poorer nations’ adoption of low carbon technologies, as well as their mitigation of climate change’s impacts. Another, in which the interaction of public and private interests is especially close, is the dropping of subsidies to coal, oil and gas producers. When a product is attended by negative externalities, any subsidy is necessarily inefficient. So it was intriguing to see the pressure to change the text. The original, which called on parties to “accelerate the phasing out of coal and subsidies for fossil fuels,” after opposition from China and India, finished the process as a call to accelerate the “phasing down of unabated coal power and of inefficient subsidies for fossil fuels.”
The fourth came late on Saturday 13th November, while the conference was well into extra time, and a Reuters headline advised: “Negotiators begin to close in on a deal to settle rules for carbon markets”. Although there is considerable scepticism about the effectiveness of carbon pricing on innovation and decarbonisation this was, at last, something tangible. The rules governing Article 6 of the Paris Agreement had not been finalised. Unagreed issues included how to prevent double-counting in the market for carbon credits; whether there should be a reduction in new credits (i.e., a cut the carbon emission allowance); and how many old (Kyoto Protocol) credits should be carried over into the new system. The final agreement solved most of these and may be the most important of the conference’s official outcomes.
tralac Blog
Even before the ink on the Glasgow Climate Pact had yet dried, commentators were scrambling to decide whether the 26th Conference of Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC), hosted by the United Kingdom in Glasgow in early November had been a ‘success’ or a ‘failure’. Most of the commentary was far from positive.
Supporting transition – the matter of incentives, supply and demand
Europe and the USA got rich on the back of coal fired industries, and China is still doing so. Unsurprisingly, coal rich developing nations also see it as an asset, and need incentives to change their patterns of use.
Should farmers be worried about the “Methane Pledge”?
Methane is one of the most seriously misunderstood of GHGs; listening to popular discussions one would think the problem was rooted in livestock, and would be solved by having the world go vegan; neither is true.
Making sense of the COP26 agenda
How should a rational observer approach COP26? It tempting to follow Gramsci and say, with “pessimism of the intellect but optimism of the will”. Pessimism because so few of the GHG problem nations are delivering on their Paris Accord undertakings, but optimism that they will get things right in the future.
What are the costs of “the end of coal”?
On 3 November, the UK released a report stating that 190 participants across the world had committed themselves to phase out coal power in economies in the 2030s for major economies and 2040s for the rest of the world, among other things. It later emerged that only 40 countries had signed.
COP 26’s collective action problem
Collective action only works where actors pursue and defend their interests in negotiations, compromising where necessary to avoid derailing the process. But COP 26 does not look like the most robust possible process and the agenda, as spelled out by the host country and its allies, is not universally accepted.
Climate finance matters for COP 26
Going into COP 26 this year, less-developed countries were concerned that the US$100 billion per year climate finance pledge made in 2009 had not been met in the preceding 12 years and their disillusionment could prove to be both a hurdle to the seriousness of their future climate commitments and a distraction at the conference.
Related News
tralac Daily News
National
SA’s divided food system saw producers, consumers lose out in lockdown – study (Eyewitness News)
New research shows how food producers and consumers lost out under the COVID-19 lockdown in South Africa due to a corporatised and divided food system. The study centred on the impact of COVID-19 on South Africa’s food system. The research found that the COVID-19 regulations affected different parts of the food system unevenly.
Although the supply and sale of food were declared an “essential service”, the reality was that vast sections of the informal sector were closed down under the new rules. Some of the recommendations to government included prioritising local and public food markets in towns and cities.
This SA airline will trial IATA Travel Pass on select flights this November IOL)
Airlink revealed that travellers using the pass can confirm pre-departure and know whether they meet the Covid-19 test requirements for travel with Airlink on flights between South Africa and Namibia.
Airlink chief executive and managing director Rodger Foster said the airline was proud to collaborate with Iata on the initiative. “The adoption of secure, digital health solutions, such as Iata Travel Pass for verifying Covid-19 test and vaccination certificates as well as pertinent entry requirements, is urgently required to eliminate the uncertainty that currently deters international air travel and by extension, business, trade, tourism, and the creation of desperately-needed jobs throughout Southern Africa,” he said.
Airlink will be the first airline in Southern Africa to test the International Air Transport Association’s (IATA) Travel Pass. The contactless travel app allows passengers to create a “digital passport”, receive tests and vaccination certificates and share testing or vaccination certificates with airlines and authorities to facilitate travel. The app will also help travellers manage travel documentation during their journey.
South Africa’s small poultry producers need greater industry representation (The Poultry Site)
Poultry producers are, the largest sector in South Africa’s agricultural industry, and poultry is a mainstay of the country’s food basket. It is the country’s most affordable protein as well as the pivot of the fast-food industry. The poultry sector, therefore, should be one aspect of South Africa’s economy that is transforming fast, creating jobs, empowering small farmers, and given agricultural ownership to emerging black farmers. Unfortunately, this is not the case.
“There is potential here for job opportunities and food security,” Kobedi Pilane, co-ordinator of the APP (African Poultry Producer) chapter in AFASA (African Farmer Association of South Africa) says. “And so in the Master Plan they talk about commercialization of emerging farmers. The target is 50 small farmers. And SAPA talks about the fact that they have commercialized 13 farmers so far. But we don’t know who these farmers are, or how they have been commercialized.
Okonjo-Iweala, WTO chief, headlines MAN’s 49th meeting (Businessamlive)
President Muhammad Buhari, Ngozi Okonjo-Iweala, director-general of the World Trade Organisation (WTO), and Akinwunmi Adesina, president of the African Development Bank (AfDB), are expected to be present at the 49th annual general meeting (AGM) of the Manufacturers Association of Nigeria (MAN) which commenced October 25 and will be on till October 27, 2021. The theme of this year’s lecture, “Overcoming binding constraints to competitive manufacturing for intra-Africa trade” is taking place at the International Conference Centre, Abuja.
Trade Associations need financial management, product standardisation capacity (News Ghana)
The Ghana National Chamber of Commerce (GNCCl) says trade associations need financial management, product standardisation, sales coaching, packaging, prospecting, and market research, as well as transportation to optimize operations. It said the main areas with limited or no service delivery were negotiations and signing of business contracts, transportation, commercial litigation, and direct intervention in checkpoints.
Ethiopian textile industry at risk if U.S. suspends trade deal over Tigray war (Reuters)
In a crowded Addis Ababa factory, Finoteselam Nigussie’s needle plunges in-and-out of the gauzy white cloth she deftly guides through a sewing machine. Like thousands of other Ethiopian women, stitching shawls for export to the United States pays the 40-year-old textile worker’s rent and her daughter’s school fees. Now though, Finoteselam’s job is in danger as the United States ponders suspending Ethiopia’s duty-free market status, citing abuses and a growing famine in the war-ravaged northern Tigray region. Suspension of benefits under the African Growth and Opportunity Act (AGOA) would threaten Ethiopia’s aspirations to become a light manufacturing hub and dent hard-won economic gains in a nation once a byword for hunger and poverty.
Although Ethiopia is not a large global supplier, suspension of its U.S. trade status would be yet another problem on the list for global fashion brands such as The Children’s Place, Tommy Hilfiger and Calvin Klein as COVID-19 disrupts manufacturing capacity, ports and supply chains.
US and World Bank announce ‘painful’ Sudan aid cuts (African Business)
The World Bank has paused its economic support to Sudan and “stopped processing any new operations” in the country, David Malpass, the Bank’s President announced on 27 October. The move came as military officers seized control of the government on 25 October, arresting key government officials and dissolving the government. The latest events could derail hard-won economic gains as painful reforms and multilateral loans bring the country back into the global financial system after decades of isolation under former dictator Omar al-Bashir. In June, the country concluded a 12 month IMF programme with a decision by the fund to provide comprehensive debt relief to the country that will be vital in returning stability to the country at a crucial moment in its democratic transition, experts say.
“I am greatly concerned by recent events and their negative impact on the country’s social and economic development,” Malpass said. The aid cuts, which include $2bn earmarked for Sudan’s recovery from the World Bank, are “painful,” says Patrick Heinisch, an economic researcher at German-based commercial bank Helaba. The US also froze $700m in emergency assistance on 25 October as news of the military takeover broke.
Ghana is on course to becoming preferred maritime trade destination in West Africa – Transport Minister (Myjoyonline)
Minister for Transport, Kwaku Ofori Asiamah has said the ongoing upgrade in infrastructure at our air, land, and sea ports will see Ghana become a preferred destination for maritime trade in the West African sub-region.
According to the Minister, government since assuming office in 2017 has embarked on major infrastructure expansion and service improvements in our maritime and inland waterways and aviation sector to make our ports competitive and highly patronized. Explaining this the Minister said “government has embarked on an aggressive pragramme to modernize the country’s sea ports to position them as the leading container hub and the beacon of international trade within West Africa. The Tema Port has seen major infrastructure upgrade in the last 4 years. “The new terminal is arguably one of the biggest and efficient in Wa and thus enhances our competitiveness in the maritime domain,” he added.
Congo to ban log exports to reduce pressure on its forests (Reuters)
Democratic Republic of Congo’s environment minister said on Thursday the country intends to ban all log exports and implement other measures to lessen threats to its carbon-absorbing tropical rainforest, a major bulwark against climate change. Home to a majority of the world’s second-largest rainforest, Congo is under pressure to improve forest management and curb a high deforestation rate that has doubled in the last decade, according to U.N. figures. Environment Minister Eve Bazaiba announced the suspension of log exports to reporters in the capital Kinshasa, but did not say when it would come into effect.
New Project to Support Egypt’s Inclusive and Sustainable Economic Growth (World Bank)
The World Bank’s Board of Executive Directors approved a US$360 million Development Policy Financing (DPF) loan to support Egypt’s post-pandemic recovery and enhance the country’s prospects for sustainable and inclusive growth. To further support achievement of the operation’s development objectives, the Asian Infrastructure Investment Bank is considering parallel financing for the operation of the same amount using the same package of policy reforms agreed with the World Bank.
Egypt’s first wave of macro-economic reforms stabilized the economy and allowed the country to enter the global COVID-19 crisis with greater resilience and improved fiscal and external accounts. The newly approved “Egypt Inclusive Growth for Sustainable Recovery” operation builds on this by supporting a second wave of structural reforms focused on creating jobs and providing an inclusive enabling environment for the private sector laying the basis for a sustainable recovery.
Egypt has remained one of the few countries that has maintained positive growth during the crisis. The reform program implemented since 2015, as well as the quick action on fiscal and monetary measures to ease the effect of the pandemic on firms and households have supported Egypt’s economy during the crisis. Significant steps have also been undertaken to address Egypt’s long-term structural challenges that are helping with the pandemic recovery. “Structural reform policies are integral to Egypt’s efforts to accomplish a sustainable and resilient economic recovery that enables the economy to weather future shocks,” said Dr. Rania Al-Mashat, Egypt’s Minister of International Cooperation. “This operation will support our efforts to maintain the reform momentum and achieve the milestones necessary for inclusive growth.” she added.
The program strategically addresses some of the long-term structural issues impacting growth through its focus on three thematic pillars: enhancing macro-fiscal sustainability, enabling private sector development, and fostering women’s economic inclusion.
Africa
Benefiting from AfCFTA comes with a lot of work – GNCC CEO (GhanaWeb)
The Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu Aboagye, has said that while the Africa Continental Free Trade Area (AfCFTA) is a great initiative, Africans will not benefit from it if certain measures are not put in place. He shared that the initiative is to ensure that we make and keep wealth in Africa rather than make wealth for European countries. He observed that these European countries make a profit from trading with Africa because they add value to the raw materials they obtain from Africa and resell them to us.
Trading across the continent must be made easy for women – Joyce Williams Esq (GhanaWeb)
Special Advisor and Head of Diaspora of the AfCFTA Joyce Williams Esq, says women face security issues when doing business across the borders. She said this in an interview with the media on day two of the Africa Globalized Investment Forum organized by AfCFTA Policy Network. According to her, APN is looking forward to creating partnerships that will make trading across the continent easy for women. She said the goal of the women in trade conference forum is to bring women together entrepreneur businesswomen from the continent and then give them the advantages of the AfCFTA.
Kenya’s president Kenyatta: Africa is at a crossroads (The Independent)
Kenya’s President Uhuru Kenyatta said Thursday that Africa is at a crossroads, poised on one hand to reap the economic benefits of its youthful population and economic reforms but facing the spread of terrorism and insurgency on the other that are challenging almost all 54 nations on the continent. Ghana’s President Nana Akufo-Addo pointed to multiple threats to the territorial integrity of some African countries, many civilians facing serious threats, and instability in some nations complicated by the interests of different actors not only within conflict areas but also from outside the continent. U.N. Secretary-General Antonio Guterres also cited “worrying trends” in Africa -- too many countries where the military has seized power and the impact of the COVID-19 pandemic which has exacerbated “poverty, inequalities and all the drivers of conflict.” Their briefings to a virtual meeting of the U.N. Security Council on cooperation between the United Nations and the African Union shone a spotlight on the challenges and conflicts facing the continent, where less than 5% of the population has been vaccinated against COVID-19.
Creating partnerships, key to achieving AfCFTA – Ken Ofori-Atta (GhanaWeb)
Mr Ken Ofori-Atta, Minister of Finance, says Africans must come together and seize the opportunity to create partnerships that will make the Africa Continental Free Trade Area (AfCFTA) work. That, he said, was necessary because the COVID-19 pandemic had taught Africa that its economic prospects hinged on expanding regional value chains across the nascent manufacturing economies. This was in a speech read on his behalf in Accra at a three-day Africa Globalized Investment Forum organized by AfCFTA Policy Network. He said the setbacks suffered across local supply chains due to the pandemic necessitated the reshoring of industrialization and trade effort.
Free zones in age of trade for development (Daily Monitor)
The establishment and development of free zones in Africa, as in the rest of the world, is linked to the increasing acceptance of globalisation and neo-liberal economic polices in order for countries on the continent to become internationally competitive by moving towards export-led industrialisation and growth. Free zones, also known as export processing zones, are an economic tool for the transformation of the structure of industry to developmental competitiveness by focusing on export diversity, increasing a country’s share of global export trade, creating backward, forward and demand linkages, and increasing the depth of the economy.
Free zones are a signal of a country’s departure from the predominantly import substitution strategy towards an external strategy to attract investment, both domestic direct investment and foreign direct investment, to create an export-oriented economy; this is a suitable strategy to find Uganda’s niche in the global market.
Business in Africa has to deal with greater compliance demands (Engineering News)
African governments are demanding greater levels of compliance from businesses, which has resulted in a noticeable increase in red tape and bureaucracy owing to poor execution by officials, says consulting engineering and scientist firm SRK Consulting South Africa MD Vis Reddy.
Strong commodity prices have boosted activity in most regions, and workers have gradually returned to many sites after the easing of Covid-19 travel restrictions, he says. “We value the opportunity to have an in-country presence wherever conditions allow so that we can engage local expertise and be closer to clients.” Reddy notes, however, that in many situations, the cost of compliance can undermine the viability of having an in-country presence.
COMESA rallies for private sector (Zambia Daily Mail)
COMMON Market for Eastern and Southern Africa (COMESA) says the private sector is vital in assisting member states stimulate economic growth as the region grapples with the impact of coronavirus. COMESA assistant secretary general-programmes Kipyego Cheluget said the role of the private sector in terms of dialogue and partnership in stimulating economic development at national and regional level is paramount. Dr Cheluget said this on Wednesday during the 15th COMESA Business Council (CBC) forum 2021 virtual meeting under the theme ‘Build back better, for business – addressing industry constraints towards recovery’. “If regional integration is going to be realised, COMESA and Africa will need to focus on developing sustainable businesses and robust economies that can fully compete and take advantage of these regional markets,” he said.
AfDB predicts strong economic recovery in East Africa (KBC)
The East Africa Economic Outlook 2021 report reveals the region’s economic growth is expected to recover to an average of 4.1 per cent in 2021 and further to 4.9 percent and 5.6 percent in 2022 and 2023 respectively, from the 0.4 percent posted in 2020. Kenya has already rolled out a new stimulus plan to bolster economic recovery which is projected to grow by 6pc. Others are Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, South Sudan, Sudan, Tanzania, and Uganda. The report attributes the slowdown in 2020 to COVID-19-containment measures such as lockdowns and curfews and reduced external demand for exports of raw materials and lower tourism inflows.
Export: Tackling ECOWAS non-tariff barriers (New Telegraph)
Recently, at the fourth Annual General Meeting (AGM) of the Manufacturers Association of Nigeria Export Promotion Group (MANEG) in Lagos, key stakeholders in the Nigerian export sector converged to discuss the severity of the Non-Tariffs Barriers (NTBs) on trade in ECOWAS sub-region and proffered solutions.
Statistics have shown that bilateral trade among African countries is only seven per cent. However, African leaders have been concerned about the low volume of trade in the continent. Sadly, many countries in Africa even prefer to trade with Europe, U.S, China and other Eastern European countries for them to improve their volume of trade. No doubt, there are lots of lacunas that have been acting as impediments to the growth of African GDP (Gross Domestic Product). However, those in export and import of goods in the continent have identified proliferation of Non-Tariffs Barriers as a major challenge threatening increase in volume of trade in the continent.
In a bid to arrest the appalling situation posed by Non-Tariffs Barriers on trade facilitation in the ECOWAS sub-region, MANEG members involved in export alluded to the fact that NTBs policy was already threatening Nigeria’s $47.3 billion market share in the regional trade.
Trade and Development Bank and ICD commit to supporting private sector investment in common African member states (Private Equity Wire)
The Eastern and Southern African Trade and Development Bank (TDB) and the Islamic Corporation for the Development of the Private Sector (ICD) have signed a Memorandum of Understanding (MoU) with the purpose of advancing cooperation in the provision of finance and investment to private sector in their common Member States in Eastern and Southern Africa. The agreement establishes a framework for both institutions to collaborate with the aim of financing eligible transactions in targeted countries sponsored by the private sector or non-sovereign backed projects. Possible financing solutions to be considered include syndication and co-financing opportunities, risk sharing, bilateral financing and/or medium term liquidity lines of credit, corporate and project finance and public-private partnerships. Furthermore, the MoU provides for collaboration in developing capital markets through sukuk (trust certificates) structuring and advisory services, as well as for further exploration of possible equity investment opportunities in the capital stock of TDB.
Natural gas in the African energy landscape (IPPMedia)
The importance of Natural Gas within the African energy mix and recommendations for further consideration by Member States, Regional Economic Communities and other African Institutions. The policy brief on NG is the first of a series of policy briefs to be produced by AFREC this year to shed light on the energy situation in Africa, present Findings and Facts on African energy sector.
In her keynote address, the Commissioner for Infrastructure and Energy, Her Excellency Dr Amani Abou-Zeid, who launched the Policy brief to the member state smentioned that Seventeen (17) African countries in Africa are producers of natural gas, seven are net exporters while seven are net importers. Additionally, 40% of global new natural gas discoveries in the last ten years are in Africa, mainly Senegal, Mauritania, Mozambique, Tanzania, and other countries. However, over 45% of natural gas production in Africa is exported and the contribution of natural gas in the continental energy balance is minimal. ‘‘Low access to affordable clean energy in Africa remains one of the biggest challenges facing our continent. Hence, Africa’s Agenda 2063 highlight the need to enhance regional and continental efforts, for accelerated and integrated infrastructure development in Africa, through high-level policy development and engagement, consensus building, promotion of regional integration to support the development of energy resources in Africa’’ She stressed.
Excerpt from the First GMES and Africa Forum (Space in Africa)
The Global Monitoring for Environment and Security and Africa (GMES & Africa) Support Programme is one of the African Union Commission (AUC) flagship programmes funded by the European Commission. The programme is the crystallisation of the longstanding cooperation between Africa and Europe in space science & technology, which is one of the key priorities of the long-term EU-Africa Joint Strategy.
The GMES and Africa Support Programme was tasked with organising two continental forums and two continental workshops during its implementation. The first GMES & Africa Support Programme forum was co-organized by the African Union Commission and the Government of Gabon through the Agence Gabonaise d’Études et d’Observation Spatiale (AGEOS) from 19th to 23rd November 2018 in Libreville, Gabon. The first GMES and Africa Forum themed “Unlocking the potential of Earth Observation as a key driver of Africa’s sustainable development” was an important platform that encouraged and promoted the exchange of views among Earth Observation (EO) service providers and end-users in Africa.
During the parallel session on data, the participants discussed the importance of raising awareness about the actors that work in the data provision sector so that users know who owns the data and who is responsible for the production and dissemination of the data. They also discussed the need for harmonising the geographic referencing system as a best practice in data sharing policy and accessibility.
Climate Smart Agriculture project in Mozambique (SADC)
A group of 15 small-scale farmers, comprising 11 women and four men, in the Baca-Baca community in Mafuane, Namaacha district of Mozambique, has benefited from the Climate Smart Technologies agriculture project launched in December 2020 by the Centre for Coordination of Agriculture Research and Development for Southern Africa (CCARDESA) in collaboration with SADC Secretariat with support from the European Union under the Global Climate Change Alliance Plus (GCCA+) programme. The Mozambique project is one the four projects launched by CCADESA, with technical support from Bembani Group, to mitigate the impact of COVID-19 on food and nutrition security using Climate Smart Technologies. The other three are in Eswatini, Zambia and Zimbabwe. CCARDESA was founded by SADC Member States to harmonize the implementation of agricultural research and development in the SADC Region The projects are an extension of the Global Climate Change Alliance Plus (GCCA+) programme which seeks to strengthen the capacity of SADC Member States to undertake regional and national adaptation and mitigation actions in response to the challenges caused by the effects of climate change.
The EU has contributed €8 million to the GCCA+ project to increase the capabilities of SADC Member States to mitigate and adapt to the effects of climate change, and to have their voices better heard in the international climate change negotiations.
‘Haryana-Africa Conclave’ begins to boost bilateral trade & connectivity (The Statesman)
A two-day ‘Haryana-Africa Conclave’, began on Thursday with an aim to boost bilateral trade and connectivity between two regions by strengthening diplomatic connections and bilateral relations. Ambassadors and senior embassy officials from 12 African nations and ministers and bureaucrats attended the Conclave titled ‘Transforming Haryana through a Go Global Approach’ organised by Foreign Cooperation Department, Haryana. An official spokesperson said the first Haryana Africa Conclave aims to boost economic and cultural ties, as not only will this create a framework and opportunities to collaborate but will also increase people-to-people engagement between the two regions.
Cooperation between the UN and the African Union is vital (GOV.UK)
Cooperation between the UN and the African Union is vital to achieving a safer, greener, healthier, more open and more resilient continent. I would like to make four key points in this respect. Firstly, Mr President, I want to underline the importance of collaboration to promote and consolidate democracy, human rights, good governance and the rule of law.
The UK is supporting African responses to these challenges. We are one of the leading donors to COVAX, which has helped 44 AMC African countries to access around 110 million vaccine doses. We will continue supporting this vital work.
We are also working with the AU to support its Green Recovery Action Plan, and to showcase African climate action at COP26 in Glasgow. We are providing technical assistance for the African Continental Free Trade Area. The UK was the first non-African country to sign a partnership agreement. It offers huge opportunities –and when fully implemented could lead to a 33% increase in intra-African trade. And we are supporting empowerment of African women and girls, including through education. Educating and empowering girls is essential if countries are to realise their full potential.
International
New WTO report on G20 shows restraint in new pandemic-related trade restrictions (WTO)
“Trade has been central to combating the pandemic – a lifeline for access to medical supplies and food,” the Director-General said. “The multilateral trading system has played an instrumental role in encouraging restraint in the use of trade restrictions. This is paying dividends now, with trade emerging as an important driver of the post-pandemic economic recovery. To secure the recovery and extend it to include all countries, we must ensure equitable access to COVID-19 vaccines, diagnostics and therapeutics. For this, we need smoothly functioning supply chains for these products, unimpeded by trade restrictions and other bottlenecks.” She urged G20 economies to unwind the pandemic-related trade restricting-measures still in place.
Ngozi Okonjo-Iweala on the need to rejuvenate multilateral trade deals (The Economist)
THE IDEA that global trade is waning has become widely accepted. On the surface, it seems plausible amid a pandemic and talk of decoupling among the leading economies. And the sense of slippage has undeniably been helped by the World Trade Organisation’s struggles to reach multilateral agreements, as a bevy of bilateral and regional deals proliferate to compensate for the gridlock in Geneva.
Yet the perception is far from reality. Fears of de-globalisation are not matched by evidence of companies abandoning foreign suppliers for domestic ones, or less trade in intermediate goods. On the contrary, global trade for merchandise is at a record high. And the overwhelming majority is conducted on the basic tariff terms that governments extend on a non-discriminatory basis to all WTO members, in line with the organisation’s “most-favoured nation” principle.
Trade must be reformed to build a sustainable global recovery (The Asahi Shimbun)
The COVID-19 pandemic has deepened inequalities in and across countries. Recent record heat waves remind us that we must address the climate crisis before it’s too late. And digitalization is providing new ways of delivering goods and services while raising new questions around its risks and regulation. In this context, it is critical that we re-evaluate where trade and investment have helped--and where they have hindered. We need to go back to the basics: what is trade for? And how can it provide better outcomes for people and the planet? Trade relations have always been a means to an end. But that end has shifted over the past century as global attitudes toward trade and what it must deliver have evolved.
Today, the trading system must adapt again to address additional concerns of global resiliency, sustainability and inclusivity. The G-20 Leaders Declaration has outlined key aspects of the COVID-19 recovery: namely, economic growth and job creation, health, digitalization, sustainability and inclusion. Trade has an important role to play in delivering each of these dimensions.
How Aid for Trade can Complement Climate Finance (Trade for Development News)
With climate change on everyone’s mind ahead of the 2021 United Nations Climate Change Conference (COP26), what are the key issues on the table for the world’s least developed countries (LDCs)? LDCs pump out insignificant amounts of carbon into the atmosphere, yet their populations stand to be hit the hardest as a result of climate change. LDC economies heavily rely on agriculture, which is highly vulnerable in the face of higher temperatures, more frequent floods and rising sea levels.
Kenya upset over stalled talks on jab IP rights (The East African)
As countries prepare for the November 30 to December 3, 2021 World Trade Organisation ministerial conference, Kenya has joined other members in expressing disappointment over stalled discussions to waive intellectual property rights on Covid-19 vaccines and drugs. The waiver was first proposed in October 2020 by India and South Africa, and is expected to cover several aspects of the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The latest WTO meeting of the Council for TRIPS on October 13 and 14 failed to unlock the impasse, and a second one is expected to be held on November 22 and 23 before the ministerial conference. Kenya, Eswatini, and Tanzania are among countries co-sponsoring the WTO IP waiver, supported by more than 100 countries, including the US, saying it will save lives by allowing developing countries to produce Covid vaccines. Only a handful of WTO members including the EU, UK, Norway and Switzerland are still opposed to the waiver.
This discussion takes place in the context of a number of worrying trends across the continent. COVID-19 has created additional socioeconomic burdens on countries’ efforts to implement the Sustainable Development Goals.
across Africa, the COVID-19 pandemic has exacerbated poverty, inequalities and all the drivers of conflict. It has undercut the provision of public services, disrupted supply chains, slowed economic activity, and hampered peace agreements and conflict resolution. Despite these worrisome developments, the people of Africa are determined to work relentlessly for a more prosperous, sustainable and peaceful continent. One based on shared values and the universal principles of human rights.
While our partnership with the African Union and subregional organizations is a necessary condition for peace, security, humanitarian, development, and justice in Africa, we also recognize that all Member States need to support these efforts.
In the Secretary-General’s report on Our Common Agenda, he underlined the need to re-embrace global solidarity to find new ways to work together for the common good of all people in every country, grounded in human rights and through a stronger, more networked and inclusive multilateral system.
Despite the pandemic, African countries have shown remarkable resilience. According to International Monetary Fund (IMF) estimates, economic growth will expand at 3.4 per cent in 2021, but African countries are in urgent need of liquidity and debt relief to create jobs, expand social protection and reverse poverty trends. Recovery must be grounded in advancing just transitions in key areas such as energy, food systems, digital connectivity and infrastructure. Urgent action is needed to speed up the re-channelling of special drawing rights (SDRs) and increase fiscal space. Spurring these transitions and implementing the African Continental Free Trade Area — a major achievement for the region — will facilitate trade, help reduce emissions, support those who are shifting from the brown economy and create new jobs geared to the economy of tomorrow for Africa’s burgeoning youth population. It could also boost the region’s combined GDP by $44 billion and create millions of jobs. In addition, digital transformation offers the potential to considerably accelerate trade, job creation and access to services.
And as we look to a sustainable and green recovery out of COVID-19 and to meet the promises of the 2030 Agenda, we should redouble our commitment to strengthening our institutions to respond to the needs of all people — especially women, youth, and minorities. One powerful litmus test will be ensuring the full representation of women as countries make the journey to peace and stability.
G20 leaders can rescue low-income countries by redistributing their IMF windfall (Atlantic Council)
For leaders of the Group of Twenty (G20) nations, this weekend’s summit in Rome presents an opportunity for post-pandemic celebration: Their response to the COVID-19 crisis showcased policymakers’ capacity to transcend politically expedient “beggar thy neighbor” reflexes and instead pursue a cooperative, multilateral approach.
The G20, which accounts for around 80 percent of global GDP, must enhance the impact of SDRs where they are most needed, such as in low-income countries (LICs). That would set the world on a path toward synchronized recovery in the short-term and global income convergence in the medium- and long-term.
Across the developing world, the newly issued SDRs will reduce countries’ exposure to exchange-rate volatility and mitigate liquidity constraints associated with elevated balance of payment pressures. This will be especially impactful in Africa, where the allocation could help countries confront myriad challenges, including weathering currency gyrations, replenishing dwindling foreign-exchange reserves (which declined by 27 percent in 2020), and financing essential imports, such as COVID-19 vaccines.
High-income countries that have drawn on effective advance purchase agreements and hoarded vaccines have also received nearly 60 percent of SDRs (or 65 percent when including China). This is despite the fact that they do not genuinely need SDRs, since most enjoy the exorbitant privilege of issuing a reserve currency. Conversely, LICs that do not enjoy the same privileges have been wildly disadvantaged: Only 0.5 percent of vaccines worldwide have been administered in LICs, compared to 77 percent in high- and upper-middle-income countries. But there is a problem: The global distribution of this financial shot in the arm is just as skewed as the supply of inoculations against COVID-19.
G20 Summit has chance to back tax on intl financial transactions (Chinadaily)
An international financial transactions tax is needed to curb damaging short-term capital flows and fund the United Nations’ Sustainable Development Goals. Besides acting on climate policy and its financing, the G20 Rome Summit on Saturday and Sunday should also support the long-pending agenda of an international financial transactions tax. The G20 Leaders, at their 2009 Pittsburgh Summit, agreed to consider the case for such a tax in view of its potential to curb the volatility caused by short-term capital flows and to raise resources for poorer countries in the aftermath of the global financial crisis. However, the 2011 Cannes Summit failed to endorse the proposal for an international financial transactions tax, despite strong support from France, which held the G20 presidency at that time, and other European countries. The failure to act on the tax proposal has cost the world dearly. The quantitative easing in the Western world following the global financial crisis led to a deluge of short-term capital flows to emerging markets, chasing good returns, which resulted in booming stock-market valuations and exchange rate appreciations. However, the boom was followed by a sharp correction in valuations following the tapering of the quantitative easing in 2013. The once booming emerging markets soon became the “fragile five”.
Regional Integration in the MENA region: A call for action (Al Jazeera)
MENA countries are on the cusp of important regional integration initiatives that will provide much needed efficiency gains, diversification, trust building and green growth. The Middle East and North Africa (MENA) is a region of abundant human and natural resources, shared culture and languages and a well-established heritage of skill in trade. With a total population close to that of the European Union, the MENA region is, however, the least economically integrated in the world. As they strive to create more jobs, attract more investment, boost growth and recover from the pandemic, countries of the MENA region today have a strong economic incentive to accelerate their efforts at regional integration.
The MENA region has been at the crossroads of regional trade throughout history. Countries have previously established a host of multilateral, regional, and bilateral trade agreements, with limited tangible outcomes. The benefits of regional integration include growth spillovers, larger markets, and production scale economies. These are well recognised by MENA economists, traders and farmers alike. What is lacking is not a rationale or capacity to integrate, but rather a sense of urgency to prioritise and move forward with integration. Opportunities for regional integration include energy and water and certain geographic regions within MENA. These would benefit from advanced dialogue, foundational technical work, and the promise of strong and near-immediate positive economic impact.
Kenya’s Uhuru Kenyatta to convene climate talks at UN conference (The East African)
Kenya’s President Uhuru Kenyatta will lead talks on Africa’s crucial role in tackling the climate crisis at the United Nations climate conference (COP26) starting in Glasgow, Scotland, next week.
Representatives from nearly 200 countries meet in Glasgow, from October 31 to November 12 to flesh out the rules of a new global climate pact. Mr Kenyatta is a member of the Giants Club alongside the presidents of Botswana, Gabon, Uganda, Mozambique and Rwanda. Lord Lebedev, a shareholder of The Independent, is the Giants Club’s patron. The forum brings together political and private sector leaders to support nature conservation in Africa. Next week’s COP26 event will feature contributions from the heads of state, or their senior representatives, from all the Giants Club countries. “COP26 must focus on an African solution to our global climate problem,” Mr Lebedev said in a statement. “We need to preserve Africa’s carbon sinks if we are to stand a chance of saving our planet. Together, African governments, the private sector and the global community can help to sustain Africa’s natural habitat – and combat climate change.”
Vulnerable countries are stepping up amidst a slow response from some of the biggest emitters on the climate crisis. A new report released today by the United Nations Development Programme (UNDP) ahead of the upcoming COP26 climate negotiations reveals that while 93% of Least developed countries (LDCs) and Small Island Developing States (SIDS) had submitted enhanced national climate pledges, or plan to do so, the G20 has been dragging its feet on adhering to the core principles of the Paris Agreement to “ratchet up” their climate ambition.
World needs $5 tln in annual climate finance by 2030 to act fast (Thomson Reuters Foundation)
Climate finance needs to rise sharply to $5 trillion a year globally by 2030 to fund measures to fight climate change, researchers said on Thursday, warning that transformation across economies is too slow to meet international temperature goals. From transport to agriculture and electricity, progress is lagging in all sectors on reducing planet-heating emissions at the pace required to limit global warming to 1.5 degrees Celsius and avoid its worst effects, a study by five green groups found.
"Although there are some encouraging signs of progress in a few sectors, overall global climate mitigation efforts are still falling woefully short," said Sophie Boehm, one of the authors.
"We're going to need world leaders at COP26 and beyond to ramp up that (climate) ambition and action immediately," Boehm told the Thomson Reuters Foundation. Two U.N. reports warned this week that the world is "way off track" to cap rising temperatures, with current national pledges set to result in an average 2.7C temperature increase this century.
Statement by the OECD Secretary-General on future levels of climate finance (OECD)
Climate finance provided and mobilised by developed countries for climate action in developing countries looks likely to reach USD 100 billion in 2023, according to new OECD analysis. The annual goal for developed countries to provide and mobilise USD 100 billion of climate finance per year for climate action in developing countries was due to have been met in 2020 and to be sustained to 2025. The last OECD assessment of progress, released in September, showed that climate finance provided and mobilised by developed countries totalled USD 79.6 billion in 2019, up only 2% from 2018. The USD 100 billion mark is unlikely to have been met in 2020, although the necessary verified data needed to finalise this determination officially will not be available before 2022.
The new OECD analysis released today – Forward-looking scenarios of climate finance provided and mobilised by developed countries in 2021-2025 – sets out two scenarios for future climate finance. These are based on detailed OECD analysis of forward-looking public climate finance commitments received from developed countries and projections of climate finance from Multilateral Development Banks (MDBs), communicated in the context of the donors’ Delivery Plan.
Almost half of all energy-related CO2 emissions in G20 economies are now covered by a carbon price, as several countries introduced or extended carbon taxes or emissions trading systems in the last few years. More needs to be done using the full range of policy tools, if countries are to match their long-term climate ambitions with outcomes, according to a new OECD report. Carbon Pricing in Times of COVID-19: What has changed in G20 economies? finds that G20 economies priced 49% of CO2 emissions from energy use in 2021, up from 37% in 2018.
“G20 economies are lifting their ambition and efforts, including through the explicit and implicit pricing of carbon emissions. However, progress remains uneven across countries and sectors and is not well enough coordinated globally. We need a globally more coherent approach which enables countries to lift their ambition and effort to the level required to meet global net zero by 2050, with every country carrying an appropriate and fair share of the burden while avoiding carbon leakage and trade distortions,” OECD Secretary-General Mathias Cormann said. “Carbon prices and equivalent measures need to become significantly more stringent, and globally better coordinated, to properly reflect the cost of emissions to the planet and put us on the path to genuinely meet the Paris Agreement climate goals.”
Three UN Agencies Announce New Financing Mechanism to Boost the International Response to Climate Change (Alliance for Hydromet Development)
The World Meteorological Organization (WMO), the UN Development Programme (UNDP) and the UN Environment Programme (UNEP) are to announce at COP26 a new United Nations Coalition Fund to significantly improve the collection of essential weather and climate data and boost the international response to climate change. The Systematic Observations Finance Facility (the SOFF) will plug the data gaps that undermine our understanding of past and current climate, as well as our capacity to predict and project future climate scenarios. This, in turn, weakens international efforts to prepare for and respond to extreme weather events such as floods, hurricanes and drought.
Over the next ten years, the SOFF will build capacity in 75 Small Island Developing States and Least Developed Countries to enable them to generate and exchange essential weather and climate data, in compliance with internationally agreed standards of GBON.
Migration flows to OECD countries declined significantly, with much of the progress in migrant integration achieved over the past decade wiped out in just one year in the wake of the COVID-19 pandemic. These are some of the key findings of the latest OECD International Migration Outlook 2021. The COVID-19 pandemic has also wiped out much of the progress in migrant integration achieved across OECD countries over the past decade. According to the OECD, governments should urgently pursue comprehensive and co-ordinated action to avoid the pandemic leading to a lasting setback on migrant integration, which would have major negative economic consequences and threaten overall social cohesion.
“The economic recovery is a key opportunity to ensure the right migration and integration policy settings are in place. The vigorous pursuit of policy best practice on migrant integration will help us optimise the strength and the quality of this recovery and boost overall social cohesion,” OECD Secretary-General Mathias Cormann said launching the report with European Commissioner for Home Affairs Ylva Johansson.
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National
Gas key as South Africa transitions to clean energy (Engineering News)
Gas will be needed to help meet energy demand in South Africa during the necessary transition to clean energy, speakers from the energy sector, academia, financial institutions and South African government departments said during a webinar on October 27. They noted, however, that South Africa has not yet put in place the required policies and regulations, trade agreements and infrastructure needed to ensure it is able to use natural gas.
Cross border trade challenges still prevalent (Graphic Online)
It appears that attempts to stamp out harassments, human rights violations, extortions and other challenges associated with cross border trading in West Africa are yielding less results than previously reported. It is in spite of the ECOWAS Trade Liberalisation Scheme (ETLS) which stipulates that traders can trade duty free and quota free across the borders within the sub-region without any harassment. Consequently, a preliminary assessment on challenges faced by small scale cross border traders commissioned by the Ghana National Chamber of Commerce and Industry (GNCCI) identified that due to lack of information traders were still subjected to human rights violations, sexual harassments and accusations of extortion by customs officials and other security agencies operating across borders in the sub-region.
Business urged to adopt modern tech (The Herald)
Local businesses should adapt to new technological trends to promote efficiency and quality of products in view of tougher market competition that is going to be brought by the African Continental Free Trade Area (ACFTA). This was said by Industry and Commerce Minister Dr Sekai Nzenza while officially opening the CEO Roundtable annual meeting in Victoria Falls today. To be an effective competitor in AfCFTA, Zimbabwe industry needs to align itself to rapidly changing technological trends in the production of goods to claim its fair share of the Africa’s gross domestic product, which presently stands at US$3,4 trillion.
While addressing delegates at the convention Minister Nzenza said, “Let me emphasise the need to centre discussions on how businesses will adopt new technological environment and enhance efficiency and quality in view of stiffer market competition that is going to be brought by the African Continental Free Trade Agreement (ACFTA) that is in force now,” said Minister Nzenza.
Zimbabwe Government committed to African Continental Free Trade Agreement (The Herald)
GOVERNMENT is fully committed to the implementation of the African Continental Free Trade Agreement and the refurbishment and modernisation of the Beitbridge Border Post and the rehabilitation of the Beitbridge- Chirundu highway to ensure seamless movement of goods and people along the North-South corridor. Stanbic Bank and its parent company, Standard Bank Group, recently unveiled a US$21,6 million loan facility for sprucing up of the Beitbridge Border Post and its environs. The loan facility was availed to a concession holding company, Zimborders Mauritius (Zimborders), towards the rehabilitation and modernisation of Zimbabwe’s side of the Beitbridge Border Post as well as the development of associated infrastructure in and around the town. Work on the rehabilitation of the Border Post started in earnest early this year and is progressing steadily.
Inside the French push for stronger trade with Kenya (The Star)
Franck Riester, France Minister Delegate for Foreign Trade and Economic Attractiveness, is leading a delegation to Kenya for a two-day visit starting today. The official visit will include bilateral talks with President Uhuru Kenyatta as well as his counterparts, Trade and Industrialisation CS Betty Maina and Treasury CS Ukur Yatani.
Minister Riester, a special envoy of President Emmanuel Macron, will be in the country as a follow-up to Uhuru’s visit to Paris, where he attended the BPI France investment forum.During the forum, Uhuru presented the three main industries that offer real opportunities in Kenya for French entrepreneurs: technologies (particularly mobile technologies), infrastructure and manufacturing. On his part, Macron shared his wish to strengthen France’s relations with Kenya and encouraged French entrepreneurs to take advantage of the many business opportunities Kenya presents.
Ministry warns of lower maize production as rains disrupt harvesting (Business Daily)
The ongoing rains in the country’s breadbasket counties of Trans-Nzoia and Uasin Gishu have hampered harvesting of mature maize and will have a negative impact on this year’s production target, the Ministry of Agriculture has warned. The October rains have coincided with harvesting in the two counties, with farmers now fearing that their produce will rot in farms. The rains have caught up with the harvest period due to late planting earlier this year following delayed rains, reflecting the problems faced by farmers due to erratic weather patterns. “Harvesting of maize has started in some areas and due to the prevailing wet conditions, rotting is expected to increase thereby increasing the post-harvest losses,” said the Ministry of Agriculture. Any loss of produce will come as a blow given that Kenya is already grappling with an annual deficit of maize.
African Development Bank Group President Dr. Akinwumi A. Adesina has said low levels of industrial manufacturing are hampering economic growth and development in Nigeria and many other African countries.
He said Nigeria must accelerate its manufacturing sector through integration and a rapid progression up global and regional value chains where it has a comparative advantage. Adesina was speaking at a lecture titled Overcoming Binding Constraints to Competitive Manufacturing for Intra-Regional Trade, which he delivered at the inaugural edition of the Adeola Odutola Lecture Series on Tuesday in Abuja. The series is organized by the Manufacturers Association of Nigeria. The African Development Bank head said: “The continent has abundant natural resources, oil, gas, minerals, metals, agricultural and forest products, and the blue economy. But tragically and ironically, Africa’s massive natural resources have not translated into wealth.” He added: “The low level of industrial manufacturing is at the core of the slow structural transformation of African economies,” and represented a race to the bottom characterized by rising poverty, export of jobs, volatile commodity prices, and import dependency.”
Creating world-class national champions for food manufacturing in Nigeria (TheCable)
In 2018, Godwin Emefiele, the Central Bank of Nigeria governor, revealed an interesting fact about Nigerians that, in many ways, explains the state of the country’s food manufacturing industry. He said that Nigerians spend an average of 73% of their income on food and beverages products. However, he also noted that most Nigerians will instead go for food and beverages products made outside of the country when faced with a choice. Now, this is not in any way an indictment of the food manufacturing industry. Food and beverage processing alone make up the large majority of Nigeria’s manufacturing output. This reflects the might of the country’s agricultural sector. The Food and Agriculture Organisation of the United Nations reports that agriculture contributed to 22.35% of Nigeria’s GDP between January and March 2021.
Boosting tax revenues: An imperative for economic recovery across Africa (TheCable)
On October 7th, President Muhammadu Buhari unveiled a record 16.39 trillion naira ($39.8 billion) budget for 2022, with government spending projected to rise by 12.5% compared to 2021. This is as Nigeria and the rest of the African continent struggle to come to grips with the economic and public health impact of COVID-19. Economists continue to express concern over outsized government expenditure and stunted growth in Africa’s largest economy, and for good reason: Nigeria’s economy contracted in 2020 because of the pandemic and is only expected to grow by just 3% this year, as a result of rising insecurity and exponential inflation in food prices. However, when responding to questions over the increase in government spending, Buhari insisted that “we do not have a debt sustainability problem, but a revenue challenge which we are determined to tackle to ensure our debts remain sustainable… this would be achieved by enhancing tax and excise revenues through reforms and administration measures.”
Ghana Infrastructure Investment Fund gets $75m loan from AfDB (Graphic Online)
The African Development Bank (AfDB.org)’s Board of Directors has officially approved a $75 million commercial loan to the Ghana Infrastructure Investment Fund (GIIF). The African Development Bank’s loan will enable the Ghanaian state-owned GIIF to efficiently leverage its paid-in equity capital of $325 million to secure additional debt resources to finance several critical Ghanaian infrastructure projects and reduce the country’s estimated multi-billion dollar infrastructure finance deficit. “This loan is an important step to anchor the sustainability of a national infrastructure financing vehicle in Ghana, a model we’d like to promote to bridge the infrastructure financing gap over the continent,” said Amadou Oumarou, African Development Bank Director for Infrastructure & Urban Development.
IDIF, a potential game changer for Ghana, Africa – Angolan Ambassador (News Ghana)
Ambassador Joao Quiosa, Angola’s Ambassador to Ghana, has endorsed the government’s One District One Factory Policy initiative (1D1F) as the prime effort towards an industrial revolution within the country and the African continent as a whole.
He said the 1D1F rested on the philosophy of local based value addition to local produce, and which was the lifeline to the continental free trade effort. The Ambassador was addressing the business community in the Volta Region at a breakfast meeting in Ho on Monday, and which was on the theme “Boosting the Trade Between Volta Region and Angola for the African Continental Free Trade Area”. “It’s time we trade among ourselves, and that is what AFCTA means. Let keep Africa’s wealth within Africa and the first step is what I see here in Ghana and I am so proud that Ghana is leading Africa in this. “One District One Factory! Let’s start that first step. Let’s not think of Giant corporations but let’s start it. In every district we have a factory. It means that we are giving value added necessary steps to our produce.
Africa
COMESA has a new theme, as Summit date is set (COMESA)
COMESA has a new theme to rally action towards implementation of its regional integration programmes for the next one year. The theme: Deepening business integration to accelerate economic recovery from the negative effects of COVID-19”, will be unveiled during the 21st COMESA Heads of State and Government Summit on 23 November 2021 in Egypt. The theme was motivated by the emerging regional and global economic and trade dynamics which have impacted heavily on the COMESA regional integration agenda. The outbreak of COVID-19 Pandemic has been the most impactful phenomenon, with devastating aftermath on lives and economies. Hence, this theme was developed as a rallying call to Members States on what to focus on.
Comesa worry as NTBs boost low-value trade (The East African)
Increasing informal trade among the Common Market for Eastern and Southern Africa (Comesa) states has resulted in 11 percent decline of the value of intra-Comesa total exports. A survey by the Comesa Secretariat led by consultant Dr Evarist Mugisa has concluded that the increasing non-trade barriers (NTBs) are to blame for the proliferation of informal trade and the decline in value of exports to $9.7 billion in 2020 from $10.9 billion in 2019. The 37th Meeting of the Comesa Trade and Customs Committee on October 15 heard that the low intra-regional trade was also a result of existing gaps in information on trading opportunities, regulatory requirements and factors that inform business decisions on production of goods and trade.
Jumia launches First Africa E-commerce Report (P.M. News)
Africa’s e-commerce platform, Jumia, has published its first Africa e-commerce report, Jumia Africa e-Commerce Index 2021 with a Nigerian section, which leveraged data from the company’s platform to illustrate the importance of shopping online in a pandemic context. The shift to everyday products during COVID-19, is part of a broader economic transformation led by the continent’s young, urban and tech savvy population.
Jumia Nigeria CEO, Massimiliano Spalazzi said: “Since the COVID-19 outbreak, e-commerce has played an important role by supporting sellers, consumers and communities. Many businesses have joined Jumia to keep their business running and to grow. Consumers used Jumia for their daily needs and seeked convenience and competitive prices on the platform too.”
E-commerce played an important role during the pandemic by providing solutions for both businesses and the communities they serve. Jumia’s partnerships with various brands and organizations have enabled SMEs to connect with millions of consumers online.
Local drugs manufacturing: a multi-billion opportunity for pharma industry in Africa (How we made it in Africa)
Covid-19 laid bare Africa’s huge reliance on imported pharmaceuticals, with the continent importing as much as 90% of its drugs. A new determination to provide medicines locally – supported by government, local business and health activists – is providing the pharma industry with a multi-billion dollar investment opportunity.
Targeting a billion-plus consumer market, international pharmaceutical companies and local businesses are in a race to boost Africa’s healthcare manufacturing and wrestle the market from Asian drug companies which sell mainly cheap generic drugs on the continent.
Latest United Nations Economic Commission for Africa (UNECA) receipts show Africa imports more than $16 billion worth of medical supplies annually. The continent’s pharma market is projected to reach a total of over $25 billion by 2022. That’s not pocket change for investors who are keen to cash in on the demand by building the continent’s local capacity to manufacture drugs. This comes amid biting Covid-19 vaccine shortfalls in Africa where just about 4.4% of the continent’s population is fully vaccinated against coronavirus.
How Can Africa Get Ready for the Latest Generation of Container Ships? (The Maritime Executive)
Over the past few years, a new generation of ultra-large container vessels has begun to sail the oceans. Container ships like the Madrid Maersk, COSCO Shipping Universe and OOCL Hong Kong can carry over 20,000 TEU of cargo. These giant vessels measure over 1,300 feet in length, with beams of between 160 and 190 feet and a draft of 52 feet. Over the past 50 years, the capacity of container vessels has increased by around 1,500 percent, doubling over the past decade alone. The exponential growth of container vessels can be attributed to shipping lines’ focus on economies of scale. The more containers they can load on a vessel, the greater the income generated by these vessels. Thus, larger vessels carrying more containers increase the profit per voyage for each vessel. The increase in capacity relates to significant changes in the length, depth, and beam of a ship.
African countries’ trade relies heavily on seaports and shipping, as most of their trade is sea-borne. In 2019, African ports represented close to seven percent of world maritime exports and about five percent of global maritime imports, according to UNCTAD. For many African countries , it has been challenging to develop ports of entry and connected transport infrastructure that keeps up with the growth trend of containerized vessels. Many of Africa’s ports are not deep or wide enough to handle such large vessels. And should the vessels be able to berth at African ports, the ports would still need the equipment to offload such large vessels.
There is urgent need for Africa to diversify economies — Adesina (The Guardian Nigeria)
President of the African Development Bank (AfFB), Dr Akinwunmi Adesina has said there is an urgent need for Africa to rapidly diversify its economies, and add value to everything that it produces. Adesina said this at the Adeola Odutola Lecture, Manufacturers Association of Nigeria Annual Meeting while making his presentation titled: “Overcoming Binding Constraints to Competitive Manufacturing for Intra-Regional Trade”. The AfDB president stressed that Africa exporting its raw materials had only led to vulnerabilities, adding that no nation or region had succeeded by simply exporting raw materials. “Africa’s development trajectory has been based on the export of raw materials and natural resources. The continent has abundant natural resources, oil, gas, minerals, metals, agricultural and forest products, and the blue economy.
Africa can’t depend on import of most vaccines, others, says Okonjo-Iweala (The Nation)
World Trade Organisation (WTO) Director-General Dr. Ngozi Okonjo-Iweala has said the experience with the COVID-19 pandemic has made it clear that it is not tenable for Africa to depend on import for 99 per cent of vaccine and 90 per cent of pharmaceuticals.
Okonjo-Iweala lamented that most of the continent’s population today remains unvaccinated, as less than five per cent of Africans are fully vaccinated compared to over 60 per cent in developed countries. She said with 80 per cent of exports from 10 countries in Europe, North America and Asia, the WTO spent a great deal of time working with manufacturers to invest in emerging markets and developing countries, including Africa.
African Export-Import Bank (Afreximbank) is pleased to announce its partnership and support to the African Technology Policy Studies Network (ATPS), which will address gaps in operational costs as well as funding for ongoing activities over a three-year period concluding in 2023. Afreximbank’s US$500,000 financial support will facilitate the implementation of development programmes on the continent and cover the shortfall in ATPS’ resources. Think Tanks play a crucial role in Africa as catalysts for ideas, helping develop material solutions to some of the continent’s most complex and intractable challenges. As actors equipped to understand intensely local issues, secure buy-in from relevant players, and establish sustainable partnerships across sectors and interests, these institutions are vital to maintaining and improving governance mechanisms through evidence-based decision-making for Africa’s development.
Investment in agriculture is a direct investment in poverty eradication – Tony Elumelu (Nairametrics)
Billionaire businessman and Chairman of United Bank for Africa Plc (UBA), Tony Elumelu, has said that investment in agriculture is a direct investment in poverty eradication and job creation in Africa. Elumelu disclosed this at the Oyo Agribusiness Summit and Exhibition hosted by Governor Seyi Makinde to transform the state’s agricultural landscape into the agribusiness hub of Nigeria. The business mogul noted that Oyo state should be to Africa, the beacon and leading entity in agriculture similar to what Silicon Valley is to North America in the area of Technology. He stressed that the agricultural sector is critical for Africa’s development as it is the continent’s largest employer of labour, adding also that what the sector generates is inclusive, broad-based, and effective in creating a multiplier effect that helps lift families and communities out of poverty.
Specific policy targeting women hampering Agric (Vanguard)
The lack of a policy specifically targeting women in Agriculture has been identified as a major concern for food security and nutrition in Africa. This was the position of the participants at the recently held celebration of the commemoration of the International Day of the Rural Women under the theme: “Strengthening Rural Women’s Contribution to Sustainable Food Systems through The Continental Free Trade Area’’ organised by the African Union.
“AUC and Development Partners set up innovative financing and that AU Member States to implement women’s right to access, control, ownership and benefit from financial resources, including access to public procurement processes in agribusiness, productive assets, including land, enabling basic infrastructure, education, information and skills development, innovative technologies and practices, to capacitate and develop women’s economic empowerment in agribusiness.
Climate change will displace, impoverish even more Africans (The East African)
Rapidly shrinking glaciers, extreme weather and increased climate events including floods and droughts, are among the foreboding events of a rapidly warming region that could soon find itself thrust out of the frying pan into the fire, on more fronts than one. A new report — The State of the Climate in Africa 2020 — paints a grim picture of what the environmental changes could do to the continent within the next decades. In due course, say the authors, up to 118 million extremely poor people on the continent will be exposed to drought, floods, extreme heat and other maladies, which will hinder progress towards poverty alleviation and growth, making it even harder to achieve the United Nations Sustainable Development Goals by 2030.
The report warns that the impacts of climate change are piling woes on a continent reeling from multiple problems such as poor health, struggling agricultural production, unemployment, poverty, civil conflict and now the Covid-19 pandemic. Climate change, if not fixed, will fracture and strain African governments’ efforts to create economic opportunities for a burgeoning population expected to reach nearly 2.5 billion by 2050 from the current estimated 1.4 billion, the report released on Tuesday warns.
The World Bank’s new Groundswell Africa reports, released today ahead of the 26th session of the Conference of the Parties (COP 26), find that the continent will be hit the hardest by climate change, with up to 86 million Africans migrating within their own countries by 2050. The data on countries in West Africa and the Lake Victoria Basin show that climate migration hot spots could emerge as early as 2030, and highlight that without concrete climate and development action, West Africa could see as many as 32 million people forced to move within their own countries by 2050. In Lake Victoria Basin countries, the number could reach a high of 38.5 million.
The authors highlight that people’s mobility will be influenced by how slow onset of climate impacts will interact with population dynamics and the socio-economic contexts within countries. However, efforts to support green, inclusive, and resilient development, could reduce the scale of climate migration by 30% in the Lake Victoria region and as much as 60% in West Africa.
Deliver financing for adaptation and resilience in Africa, global leaders urge ahead of COP26 (AfDB)
Ahead of key climate talks at COP26 in Glasgow, African leaders and development partners have called for greater funding towards climate adaptation. The calls were made at the launch of the Global Center on Adaptation (GCA) report on adaptation trends in Africa. The report was launched on Tuesday in Nairobi on the inaugural Adaptation Acceleration Day. Kenyan President Uhuru Kenyatta warned in his remarks at the launch that Africa’s gross domestic product (GDP) risks contracting by up to 30 percent by the year 2050, in the absence of urgent climate change adaptation action. “While it is relatively more difficult to design and implement adaptation projects and while fewer resources are currently available for adaptation, we should not lose sight of the fact that adaptation is, without doubt, smart economics,” President Kenyatta added. Leaders said developed countries had provided well below the threshold for Africa’s adaptation needs.
Chinese Investment in Africa Rises as Project Values and Bilateral Trade Decline (IISD)
China has created 25 economic and trade cooperation zones in 16 African countries and has continued to invest heavily across the continent throughout the COVID-19 pandemic, according to a government report about Chinese–African economic and trade ties. The zones, registered with China’s Ministry of Commerce, had attracted 623 businesses with a total investment of USD 735 billion at the end of 2020, according to the China-Africa Economic and Trade Relationship Annual Report (2021).
While COVID-19 has shaken the global economy and spooked many investors due to uncertainties about how long the crisis will last, Chinese investment in Africa has been climbing, the report says. China invested USD 2.96 billion in Africa last year, up 9.5% from 2019. Almost all of that—USD 2.66 billion—was non-financial direct investment. The trend is continuing in 2021, according to the 108-page report. Direct investment in Africa amounted to USD 2.07 billion in the first seven months, outperforming the pre-pandemic level in the same period of 2019. China has been Africa’s largest trading partner for 12 years, even though bilateral trade declined 10.5% to USD 187 billion in 2019. It is also the fourth-biggest investor in the continent. In particular, China is investing heavily in the African services sector. Investment in subsectors such as scientific research and technology services, transport, warehousing, and postal services more than doubled in 2020, the report says. However, services trade between the two partners fell 20% last year to USD 8.66 billion, it says.
EU says No to patent-free vaccines for Africa (EUobserver)
EU countries blocked mention of waiving vaccine patents to help fight the pandemic at a meeting in Africa, overshadowed by the Sudan coup. There was a “need to conclude discussions on how the World Trade Organisation (WTO) can support the ramping up of manufacturing, the equitable distribution of Covid-19 related health products and the transfer of technologies”, 68 EU and African foreign ministers said in a joint communiqué on Wednesday (27 October) after a two-day meeting in Kigali.
“We agreed on the importance of ... equitable access to vaccines, medical treatments and health technologies,” EU foreign-affairs chief Josep Borrell also told press. But for its part, the African Union (AU) had wanted a much higher level of ambition. It had called for EU backing for “a targeted and time-limited Trips Waiver” at an upcoming WTO meeting in November in earlier drafts of the communiqué, seen by EUobserver.
EU-African Union ministerial meeting, 26 October 2021 (EU News)
Foreign affairs ministers of the European Union and the African Union met for the second time in this configuration since January 2019 to take stock of progress made since the fifth EU-AU Summit (Abidjan, 29-30 November). Ministers also exchanged views on the EU-AU partnership and how to strengthen cooperation.
From “trade gateway” to risk guarantees: what Russian businesses are offered in Africa (TASS)
Africa today is one of the most attractive markets and promising regions for long-term investment. The continent shows the world’s highest consumption growth rates. Russia has recently joined business activities in the region. The first-ever Russia-Africa summit, held in Sochi in 2019, was a powerful impetus for this. The second one is due in 2022. Both sides expect a considerable increase in the number of contracts that will be concluded. Oramah said trade between African countries and Russia saw considerable progress lately.
Oramah believes that Russian companies have a number of advantages over their competitors in Africa in a number of fields, such as the construction of railways. “Africa because of the AfCFTA is building its railway network. Sometimes it is difficult to understand why the Russians are not taking advantage of it? Because today you have the Chinese, you have the Americans, you have the Germans who are in all these projects…That is a very, very promising area,” Oramah said.
“The era of commodities is disappearing. Everywhere you go engineering services are required, Africa is building its infrastructure. It is very much behind and it’s trying to catch up,” Oramah said.
International
Trade data for 2020 confirm growing importance of digital technologies during COVID-19 (UNCTAD)
COVID-19 has provided a strong impetus for businesses and individuals to adopt digital tools, helping to drive a 6% increase in worldwide exports of ICT services, according to an UNCTAD technical note on the pandemic’s impact on trade in the digital economy, published on 21 October.
The value of ICT services’ exports worldwide reached $676 billion in 2020 as the usage of communications services, computer services and software were boosted by the lockdown restrictions implemented in many economies. This took digitally deliverable services to nearly 64% of total services exports, as they contracted relatively little against the backdrop of an unprecedented decline in total services trade.
“Low levels of digitalization and eTrade readiness are hampering the ability of LDCs to engage in digital trade at a moment when it has suddenly become even more important,” said Shamika N. Sirimanne, UNCTAD director of technology and logistics. “It underscores the need to boost the capabilities of those trailing in digital readiness to catch up in the digital economy.”
Members welcome increased notification activity on national customs legislation (WTO)
Since the Committee’s meeting at this time last year, ten members — Afghanistan, Benin, Colombia, El Salvador, Iceland, Mongolia, Saint Kitts & Nevis, Solomon Islands, the United Kingdom and Viet Nam — have notified new or amended customs legislation. In addition, the WTO Secretariat is currently assisting several other members seeking assistance in finalizing their notifications to the Committee.
Currently, there are 34 national legislations under review before the Committee, with exchanges consisting primarily of written questions and replies. Questions were received from Canada, China, the European Union and the United States, and replies to questions on their legislation were submitted by the following eight members: The Gambia, Honduras, India, Kazakhstan, Kyrgyz Republic, Niger, Rwanda and Viet Nam.
“Trade plays an important role in climate change adaptation and mitigation” — DDG Ellard (WTO)
climate change, one of the most pressing challenges of our time, must be tackled to save the planet. Scientists tell us that it is still possible to get global warming under control, but only if unprecedented action is taken now. The international community must make every effort to agree on the course of action to avoid a climate disaster. The WTO is not the place to establish global climate policy and how goals will be reached. However, the WTO plays an important role because its rules govern taxes, tariffs, subsides, regulatory measures, and other instruments that are relevant for implementing climate policies.
When speaking about trade, it is tempting to think only that trade contributes to climate change through emissions caused by the production and transportation of goods. But this view is incomplete because trade is also a central part of the solution, enhancing both adaptation and mitigation efforts. To transition to a low-carbon economy, countries need affordable access to advanced technologies. And open trade plays a critical role in providing such access. Lowering barriers to trade in environmental goods and services helps facilitate transfer and deployment of climate change mitigation and adaptation technologies.
DDG Anabel González: Slash services trade red tape. At the WTO (WTO Blogs)
From Nigeria to Costa Rica, to the United States, Turkey, China and beyond, 65 economies are getting ready to adopt a set of good regulatory practices to streamline domestic regulations and facilitate commerce in services. They account for over 90 percent of global services trade. They are ready to cut red tape. They aim to reduce trade costs. Their joint endeavor goes under the rather unexciting name of ‘Joint Statement Initiative on Services Domestic Regulation’. It is happening under the umbrella of the World Trade Organization (WTO).
Initial discussions under an innovative format were launched in December 2017 at the WTO’s 11th Ministerial Conference. While the talks on services domestic regulation (SDR) are open to all 164 WTO members, negotiations took place among those wanting to engage on the topic. Alongside investment facilitation and e-commerce, they are one of the plurilateral negotiations paving the way for more flexible approaches to advance trade cooperation. Not all WTO members think this is a good idea, but many do, including the US and China. They see the WTO could become a ‘club of clubs’: everyone is a member, but only those interested in soccer, tennis or yoga would join the respective group.
The disciplines on SDR address the practical challenges that affect the ability of businesses and suppliers to provide a service. They aim at ensuring that licensing requirements and procedures, qualification requirements and procedures, and technical standards to not constitute unnecessary barriers to services trade. The disciplines are focused on three areas. First, transparency to promote prompt publication and availability of information relevant to services suppliers and their engagement in regulatory decision-making processes. Second, legal certainty and predictability to ensure that competent authorities follow regulatory and procedural guarantees when dealing with applications for authorization to supply services, such as processing applications in a timely manner. And third, regulatory quality and facilitation with measures aimed at disseminating good regulatory practices to facilitate services suppliers’ ability to trade, such as requiring applicants to approach only one competent authority to obtain authorization. In a first of its kind for a WTO negotiated outcome, the SDR text contains a provision to ensure that authorization measures for service suppliers do not discriminate between women and men.
The Changing Wealth of Nations 2021: Managing Assets for the Future (World Bank)
It is now clear that a narrow focus on the growth of gross domestic product (GDP) is insufficient to achieve humanity’s aspirations for sustainable prosperity. Wellfunctioning ecosystems and educated populations are requisites for sustainable wellbeing. These and other too-often-neglected ingredients of national wealth must be addressed if the development path is to be sustainable. The Changing Wealth of Nations 2021: Managing Assets for the Future provides the most comprehensive accounting of the wealth of nations, an in-depth analysis of the evolution of wealth, and pathways to build wealth for the future. This report—and the accompanying global database—firmly establishes comprehensive wealth as a measure of sustainability and a key component of country analytics. It expands the coverage of wealth accounts and improves our understanding of the quality of all assets, notably, natural capital. Wealth—the stock of produced, natural, and human capital—is measured as the sum of assets that yield a stream of benefits over time. Changes in the wealth of nations matter because they reflect the change in countries’ assets that underpin future income. Countries regularly track GDP as an indicator of their economic progress, but not wealth, and national wealth has a more direct and long-term impact on people’s lives. This report provides a new set of tools and analysis to help policy makers navigate risks and to guide collective action. Wealth accounts can be applied in macroeconomic analysis to areas of major policy concern such as climate change and natural resource management. This report can be used to look beyond GDP, to gauge nations’ economic well-being, and to promote sustainable prosperity.
Sustainable Development Outlook 2021: From anguish to determination (UN-DESA)
The COVID-19 pandemic has renewed the global awareness that we are all in this together. The pandemic has set back progress on achieving the Sustainable Development Goals (SDGs), but it has also made it possible for the international community to see the pursuit of sustainable development in a new light, and to learn from both successes and challenges of the pandemic to reinvigorate efforts towards achieving the SDGs. The Sustainable Development Outlook 2021 charts a way forward for the world community to achieve the SDGs, despite the setback caused by COVID-19. In doing so, it focuses on SDG 1 (poverty), SDG 2 (hunger), SDG 3 (health and well-being), SDG 8 (growth and employment), SDG 10 (inequality), and their interlinkages. In each case, Sustainable Development Outlook 2021 presents in-depth analyses, based on country case studies and the relevant literature, and uses the findings to present plausible future scenarios under different assumptions.
Top economists call for ‘radical redirection’ focusing on healthcare (UN News)
Released on Tuesday, the WHO Economic Council’s new brief, Financing Health for All, points to three main actions: create fiscal space, direct investments, and the administration of public and private finance. On public spending, the experts say that easing constraints imposed by outdated economic assumptions and reversing reforms that lead to big health care cuts, would allow spending to increase significantly. According to the brief, investments to ensure equal access to healthcare for everyone, should become the central purpose of economic activity. Public leadership should work to create positive regulatory, taxation, and industrial policies, and boost investment in the field. Finally, public and private finance should be governed by greater regulation of private health markets through measures that improve outcomes globally and on an equitable basis.
Facing Climate Financing Realities: How to think about coming pledges at COP 26 (IISD)
With the first part of the Conference of the Parties to the Convention on Biological Diversity in China now in the rearview mirror and the 2021 United Nations Climate Change Conference (COP 26) in Glasgow just days away, we must consider how we’ll be able to meet the increasing need for financial resources to address the acute climate and biodiversity crises we face.
There is little doubt that new financial pledges will be made in Glasgow, which will send important political signals in their own right. However, these pledges must be placed in the context of prior commitments and actions so that we can learn from the past and improve our approach for the future. A crucial aspect of this work is that we must acknowledge that public and private actors have different roles and interests in tackling climate financing challenges. We also need to learn why both groups have yet to meet the expectations outlined in prior pledges so that we can target our efforts accordingly.
From Climate Pledges to Action: New Principles Provide Roadmap for Net-Zero Buildings (WEF)
Collective action must be taken to accelerate the decarbonization of buildings, which contribute 38% of all energy-related greenhouse gas emissions. A new action plan released today by the World Economic Forum offers a set of principles to help companies deliver net-zero carbon buildings and meet key climate commitments. The Green Building Principles: The Action Plan for Net Zero Carbon provides a clear sequence of steps to deliver net-zero carbon buildings.
“The climate crisis is the greatest challenge humanity has ever faced. It will affect every aspect of our lives and threatens the entire global economy and we must rapidly deploy the solutions we already have in hand to avert its most catastrophic impacts,” said Al Gore, Vice-President of the United States (1993-2001), Chairman and Co-Founder, Generation Investment Management. “Buildings are a large and often overlooked contributor to this crisis, but with investments in clean energy and energy efficiency, we can begin solving the climate crisis, create tens of millions of jobs, and build a better future.”
Scaling up climate adaptation finance must be on the table at UN COP26 (UNCTAD)
The second part of UNCTAD’s Trade and Development Report 2021 published on 28 October outlines reforms of the international financial system to get more climate adaptation funds flowing to developing countries. Released ahead of the upcoming UN COP26 climate summit, the report calls for a transformative approach to climate adaptation, with advanced economies ensuring that multilateral institutions can support developing countries to manage the pressures from a changing climate without compromising their development goals. Estimates indicate that annual climate adaptation costs in developing countries could reach $300 billion in 2030 and, if mitigation targets are breached, as much as $500 billion by 2050. But current funding is less than a quarter of the 2030 figure and the report warns that relying on private finance will not deliver on scale or to the countries most in need.
UNCTAD Secretary-General Rebeca Grynspan said: “Fulfilling the $100bn a year pledge for the Green Climate Fund is a must at Glasgow. But aligning ambition and action will require a concerted reform effort at the multilateral level to ensure adequate funding for developing countries to adapt to the worsening impacts of ever-increasing climate change. Climate change has no borders, so our strategy to adapt to it must be globally coordinated.”
Green industrial policies key for developing countries to adapt to climate change (UNCTAD)
UNCTAD’s Trade and Development Report 2021 calls for a transformative approach to climate adaptation, with large-scale public investment programmes to adapt to future as well as current threats, and green industrial policies to drive growth and job creation. Activities related to renewable energy production and the circular economy can, the report suggests, operate at a low scale, opening business opportunities for small firms and rural areas, help to diversify economic production structures and reduce many countries’ dependence on the production of a narrow range of primary commodities.
Smaller nations face road blocks in attending COP26 (The Guam Daily Post)
Some of the world’s most climate-vulnerable countries have been forced to scale back their attendance at the COP26 climate summit due to COVID-19 travel curbs and costs, blunting their negotiating power, according to Fiji’s U.N. ambassador. Border closures, quarantine rules and high travel costs will see small island states and poorer nations sending smaller delegations, with some leaders unable to travel to the key United Nations’ climate talks that start in Scotland on Sunday. “The stakes could not be higher, but it’s a very difficult situation,” Prasad told the Thomson Reuters Foundation by phone from New York, where he is based.
EU exports boosted thanks to stronger implementation and enforcement of trade deals and global rules (European Commission)
EU exports boosted thanks to stronger implementation and enforcement of trade deals and global rules Effective implementation and enforcement of EU trade agreements and international trade rules have added €5.4 billion to EU exports in 2020. This confirms that European Commission efforts are paying off. Tangible results range from the elimination of trade barriers to addressing unfair trade practices and taking action on trade and sustainable development. Over the past year, the Commission has also developed further legal instruments to strengthen the EU’s capacity to defend its key interests and protect its open strategic autonomy.
Executive Vice-President and Commissioner for Trade Valdis Dombrovskis said: “An assertive trade policy is about ensuring our partners honour their international commitments and, in the process, directly support European businesses and jobs.
Related News
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National
NAB promotes sale of local produce (The Namibian)
THE Namibian Agronomic Board (NAB) has embarked on an initiative to promote the sale of locally produced fruits and vegetables.Conducted in collaboration with the Namibia Association of Traders in Fresh Produce (NATFP), it involves putting up eye-catching displays of Namibian fresh produce in stores across the country.According to a statement posted on the NAB’s website, this initiative aims to promote the sales of locally produced products in the country.”The eye-catching display initiative is part of the Namibian Horticulture Market Share Promotion (MSP) scheme being implemented by the NAB,” reads the statement.
Let’s expand trade: Malawi envoy (The Herald)
OUTGOING Malawian Ambassador to Zimbabwe, Ms Annie Kumwenda says there is room for the two countries to strengthen and expand trade. Ambassador Kumwenda said this after meeting President Mnangagwa at State House yesterday to confirm the end of her diplomatic tenure in Zimbabwe. She has been Malawi’s representative in Zimbabwe for the past six years and has witnessed an increase in trade between the two sister republics. Zimbabwe and Malawi have ties that pre-date their respective independence with ties going beyond trade and diplomacy, but also familial links as there is a large Malawian diaspora in the country. “We have seen a lot of countries going to Malawi to invest in different sectors in agriculture. We wish to take that further. There is more room for trade,” she said. Ambassador Kumwenda highlighted that a significant number of Memoranda of Understanding (MOUs) have been signed between the two countries with the latest seeking to enhance cooperation in the agriculture sector.
KRA nets Sh5bn on fall in machinery tax benefits (Business Daily)
The taxman netted an estimated Sh5.24 billion from corporate earnings after the Treasury successfully rallied lawmakers to reduce pretax capital expense deductions.The Treasury estimates the Kenya Revenue Authority (KRA) cut the amount it used to forego on corporate income tax as a result of deductible expenditures on investments in machinery and buildings to Sh56.74 billion last year from Sh61.98 billion the year before.This means the KRA received an additional Sh5.24 billion from earnings by corporate bodies, cash which was not previously collected as companies, co-operatives and trusts deducted higher capital allowances to recoup the investment in buildings and machinery.
TPF touts pan Africanism to facilitate AfCFTA goals (IPPMedia)
Tanzania Peace Foundation’s Chairman, Sadiki Godigodi said in Dar es Salaam this week that during a Pan African conference held last week, delegates agreed that African Union member countries should ensure that peace and calm prevail within their borders for the Africa Continental Free Trade Area to work.
“Following the circulation of a fake document on social media web sites last week which rubbished aside the convening of the Pan African conference with a theme, ‘The imperative of post-Covid recovery: how can the resolution of the Sahara issue spur African stability and integration,’ held on Saturday, 16 October 2021, is fake,” Godigodi said.
Economic model must transition to production for recovery – John Kumah (The Business & Financial Times)
For the country to see a speedy recovery from impacts of the pandemic, it is important for the economy to transition into a new model that focuses on production rather than the traditional approach which has dwelt on importation and export of raw materials, Deputy Minister of Finance John Kumah has said.
For him, the market created by the African Continental Free Trade Area (AfCFTA) agreement should be a wake-up call for economic actors to channel their energies and resources into production; especially when the pandemic and its associated lockdowns and restrictions on movement have pushed advanced economies to shut their borders – thereby leaving the African continent to find its own way to survival.
Adesina slams Nigeria’s ‘import substitution’ economic model (Premium Times Nigeria)
The president of the African Development Bank, Akinwunmi Adesina, has criticised Nigeria’s failure to diversify its export base to high-value market products, saying the country has focused more on replacing imports and saving the naira rather than deliberately pursuing wealth creation and value-added manufacturing.
Mr Adesina, Nigeria’s former agriculture minister, said Nigeria must have a greater ambition for its manufacturing sector by integrating and rapidly moving up global and regional value chains in areas of comparative advantage; by and by driving greater specialization and competitiveness.
“Import substitution, while important, is a very restrictive vision. It looks towards survival, instead of looking to create wealth through greater export market and value diversification. The end result is a manufacturing sector that cannot develop nor compete globally, but limits itself to “survival mode, not a “global manufacturing growth mode”.
Power, poor transportation, port facilities killing Nigeria’s manufacturers – Adesina (Punch)
The President of the African Development Bank Group, Dr. Akinwumi Adesina, says the lack of stable electricity in Nigeria is killing industries in the country, adding that based on an International Monetary Fund report, about $29bn is lost annually due to poor power supply in Nigeria. He said this in his lecture titled, ‘Overcoming Binding Constraints to Competitive Manufacturing for Intra-Regional Trade’, which he presented at the Manufacturers Association of Nigeria Annual Meeting on Tuesday in Abuja. Adesina lamented the low export revenue generated from the manufacturing sector, representing only three per cent of total revenues from export. “The manufacturing sector of Nigeria represents only three per cent of total revenues from exports, but accounts for 50 per cent of imports in the country. “Instead of being forward looking in expanding the share of the manufactured goods in its total export revenue, Nigeria focuses on the model of import substitution. Import substitution, while important, is a very restrictive vision,” he lamented.
NADDC Boss: Nigeria Earning FX from Indigenous Car Exports (THISDAY)
The Director General, National Automotive Design and Development Council (NADDC), Mr. Jelani Aliyu, has disclosed that the country has started to earn foreign exchange through exportation of locally manufactured vehicles. Specifically, he said indigenous automobile company, Innoson Motors, had already commended export Made -in Nigeria vehicles to Mali. Aliyu, at the recently concluded annual conference of Commerce and Industry Correspondents Association of Nigeria (CICAN) added that the council had gone a step further in leveraging on electric-powered vehicles. He pointed out that some local automobile companies had also commenced production of gas-powered vehicles as part of measures to support the federal government’s National Gas Expansion Programme.
Weak export capacity undermines proceeds from naira devaluation (The Guardian Nigeria)
Nigeria’s capacity to take advantage of a weakened currency to boost its revenue profile and bridge gaps in balance of trade remains undermined by lingering domestic challenges, especially that of logistics, in transiting its non-oil exports. Notwithstanding efforts by the private sector to overcome the challenges, retaliatory tariffs by neighbouring countries due to border closure by Nigeria in 2019, are also limiting the country’s capacity to improve its foreign exchange earnings. Operators in the non-oil export sector decried reduced international demand for Nigerian goods coupled with domestic economic challenges, while adding that ECOWAS member-countries continue to exploit Nigerians for revenue from liberalised items, therefore killing trade and competition. Though the Federal Government embraces import substitution as a policy to conserve scarce, foreign exchange, President of the African Development Bank (AfDB), Akinwunmi Adesina, yesterday, described the stance as a restrictive vision that looks towards survival, instead of looking to create wealth through greater export market and value diversification.
eNaira: Watershed in Payment, Economic Landscape (THISDAY)
It’s here at last – The much-anticipated Central Bank Digital Currency (CBDC), also known as eNaira was launched on Monday by President Muhammadu Buhari, who proudly stated that Nigeria had “become the first country in Africa, and one of the first in the world to introduce a digital currency to her citizens.” The president quickly pointed out that the use of physical cash in conducting business and making payments had been on the decline in recent times, strengthened by the onset of the COVID-19 pandemic and the resurgence of a new digital economy. As a result, Buhari further observed that businesses, households, and other economic agents had sought for new means of making payments in the new circumstances. Specifically, he said the absence of a swift and effective solution to these requirements, as well as fears that central banks’ actions sometimes lead to hyperinflation, further created the space for non-government entities to establish new forms of private currencies that seemed to have gained popularity and acceptance across the world, including here in Nigeria.
Africa
Seven Charts that Show Sub-Saharan Africa at a Crucial Point (IMF)
After an unparalleled contraction in 2020, sub-Saharan Africa is set to grow by 3.7 percent in 2021 and 3.8 percent in 2022. The recovery is supported by rising commodity prices, improving global trade and financial conditions. But this welcomed rebound is relatively modest by global standards, leading to a widening income disparity with developed economies. Seven charts taken from our latest Regional Economic Outlook tell the story of the forecast for sub-Saharan Africa:
Meeting of EAC Chiefs of Immigration comes to a close in Dar es Salaam, Tanzania (EAC)
The EAC Secretariat in collaboration with International Organization for Migration (IOM) held a meeting of Chiefs of Immigration held from 18th - 21st October 2021. The Meeting was chaired by, Mr. Alexander Imbenzi Muteshi, the Director General Immigration Services, Ministry of Interior and Coordination of National Government, Republic of Kenya. Mr. Muteshi called upon Partner States to harmonise immigration processes to among others, promote domestic tourism and provide equal treatment to nationals of the EAC Partner States.
Hon. Christophe Bazivamo, the EAC Deputy Secretary General in charge of the Productive and Social Sectors, commended the Chiefs of Immigration for their continued efforts in the implementation of the EAC Customs Union and Common Market Protocols at the regional level and the African Continental Free Trade Area (AfCFTA) in as far as facilitating free movement of goods, persons, workers and services are concerned. He urged them to provide technical guidance towards the finalization of the draft e- Immigration Policy since its implementation was very crucial in the provision of e-immigration services especially in the era of Covid-19 and other highly infectious diseases.
Afreximbank’s platform to promote cross-border trade in Africa (Independent)
The African Export-Import Bank’s new digital Customer Due Diligence (CDD) platform, called Mansa, is set to promote cross-border trade in Africa, says the product head Maureen Mba. Mba, who spoke during the launch of the platform in the East African Community in partnership with the East African Business Council in Kampala on Oct.20, said 965 businesses have already been uploaded onto the platform consisting of financial institutions, corporates and the Small and Medium Enterprises across Africa. Some of Uganda’s institutions on the platform include; Absa Bank, dfcu Bank, Cairo Bank, Opportunity Bank, Ecobank, Finance Trust Bank, NCBA Bank and Tropical Bank. Mansa is single source of primary data required for customer due diligence and Know Your Customer (KYC) checks on African entities, including financial institutions, corporates and SMEs, in accordance with best practices. The platform is also expected to address key trade related challenges facing the continent, including, the lack of market information, the high cost of doing business in Africa and discovering African counterparties.
U.S. to defer 33M Covid vaccine doses to Africa (POLITICO)
Psaki added that the “unique arrangement will help facilitate” a separate deal between the African Union’s vaccine acquisition vehicle and Moderna “for a supply agreement for 50 million doses,” with an option for a further 60 million doses. A White House spokesperson told POLITICO the 33 million Moderna doses set to be deferred by the United States would be included in the forthcoming 50 million doses from the American pharmaceutical company to the African Union. The United States has thus far delivered 55 million doses of Covid-19 vaccine to Africa, Psaki said. In addition, 17 million doses of Johnson & Johnson’s vaccine “will be sent to Africa in the coming weeks,” and “tens of millions” of doses of Pfizer’s vaccine also are set to be shipped to the continent.
Trade Was A Lifeline For Women In Southern Africa. Then The Pandemic Took It Away. (BuzzFeed News)
For decades, this informal commercial network has provided steady work for people, mostly women, in the area’s borderlands. The United Nations has estimated that the industry makes up 40 percent of the $17 billion trade market among the 16 countries in the Southern African Development Community. But the pandemic has kicked down this essential economic pillar for communities where job opportunities are slim and there is limited access to COVID-19 vaccines, sparking a financial downturn with no end in sight.Nearly 70 percent of traders in Zimbabwe are women, according to the UN, and they’ve had to find other sources of income. Some have tried buying and selling goods domestically, for less profit. Some have partnered with smugglers who sneak across the border to move products, taking a cut of the revenue. Some, like Michele, have begun selling sex, boarding, and companionship to the truck drivers stuck in town for weeks due to shipping delays, COVID screening bottlenecks, and confusion over shifting government policies.
“The virus and the resultant lockdown happened so fast that the women did not have enough time to prepare for any economic repercussions,” said Ernest Chirume, a researcher and member of the Catholic University of Zimbabwe’s Faculty of Humanities and Social Sciences, who wrote a paper on the effects of COVID-19 on informal traders.
‘Nigeria, others only increased U.S. non-oil imports by one-tenth of one percent’ (The Guardian Nigeria)
Despite the opportunities offered by the African Growth and Opportunity Act (AGOA), the United States Government has expressed worry that non-oil exports remain very low, with many African countries yet to exploit opportunities the programme offers.
United States Trade Representative Katherine Tai, while speaking during the opening session of the Virtual African Growth and Opportunity Act (AGOA) Ministerial, noted that outside of the oil sector, imports under AGOA have grown modestly over the life of the programme. According to her, while Sub-Saharan Africa’s non-oil exports to the United States have grown over the last 20 years, the region’s market share of U.S. non-oil imports has only increased by one-tenth of one percent. She said: “As we consider AGOA’s future, we must ask ourselves what improvements we can make to attract more investment and help small and women-owned businesses find new markets for their products and compete in the global economy.
Key strategies to accelerate Africa’s post-COVID recovery (Brookings Institution)
The COVID-19 pandemic brought unprecedented disruptions to Africa—reducing earnings and increasing poverty and food insecurity as well as leading the region into its first recession in 25 years. While the global economic effects of the pandemic have started to recede as Western and Asian countries recover, 2021 is still turning out to be a difficult year for Africa. Moreover, the region will face even riskier external and internal environments in the future.
Thus, African leaders must now adopt strategies for a resilient recovery post-COVID-19 as we discuss in our recent report. Resiliency—a country’s capability to recover from shocks and adapt flexibly to stressors—not only protects economic and social gains, but also facilitates economic transformation and sustainable employment. In a “resilient” country, fewer assets are lost when a shock occurs, so more sustained improvements in economic welfare occur for the same amount of investment. Post-COVID-19 African economic development policy needs, therefore, to be centered around both improving resiliency and accelerating transformation to realize sustained economic welfare gains. Strategies for resiliency should build on the COVID-19 experience, helping households, communities, and countries to strengthen coping measures that reduce losses thus allowing for a faster recovery, and investing to adapt to and mitigate the effects of future shocks. Adapting to a “new normal” can help resilient countries to grow and transform at a faster rate.
Bridge technology gap to reap AfCFTA benefits, African states told (Chronicle)
AFRICAN states should work on closing the science and technology gap in order to take full advantage of the African Continental Free Trade Agreement (AfCFTA). During the recent 5th AfreximBank’s annual lecture, it was revealed that Africa was lagging behind the rest of the world in science, technology and innovation (STI progress). “Only 0,1 percent of all patent applications are registered in Africa compared to 65 percent in Asia and 25 percent in North America, said AfreximBank, quoting Mauritius former President Professor Ameenah Gurib-Fakim. “Africa is also responsible for only two percent of the world’s research output and one percent of research spending.
Verdict on EAC admission of DRC set for November (The East African)
The Democratic Republic of Congo’s bid to join the East African Community (EAC) has passed the technical committee stage with the regional Council of Ministers expected to deliver the final verdict this November.The EAC technical experts have been reviewing a report of the mission tasked with verifying the readiness of DR Congo. The report touches on the social-economic and political compliance of the country with the Treaty establishing the EAC.
“From the next extraordinary meeting of the Council of Ministers to act on it before the end of November, it will be handed to the Summit of the Heads of State. We are looking at early 2022 for the Summit,” Mr Desai said.
Global leaders, hosted by President Uhuru Kenyatta, spoke at the launch of the Global Center on Adaptation (GCA) “State and Trends in Adaptation in Africa Report 2021 – How Adaptation Can Make Africa Safer, Greener and More Prosperous in a Warming World” (STA21) to call for COP26 and development partners to increase resources to the Africa Adaptation Acceleration Program (AAAP). STA21 presents a blueprint for climate adaptation and showcases the opportunities climate adaptation offers to solve previously intractable problems and put Africa on a more resilient pathway towards “green growth”.
The report outlines the financial and macro-economic risk climate change poses to Africa and the imperative for the continent to scale up adaptation to reduce the economic costs of climate change. Without adaptation action, projections estimate that climate change will lead to an equivalent of 2 percent to 4 percent annual loss in GDP in the continent by 2040, with the poor, women, and excluded populations bearing the brunt of the impact. Yet the GCA report shows that the benefits of adaptation measures are frequently more than twice or as much as five times or greater than their costs. In addition, moving quickly to adapt is especially beneficial, with a benefit-cost ratio for early action of at least 12 to 1.
“Africa will suffer higher GDP losses than most other regions of the world. These impacts can only be reduced with adaptation. Thousands of lives and millions of livelihoods have already been sacrificed in Africa because we are far from delivering what is needed in adaptation today. For COP26 to succeed, Glasgow must deliver for Africa. To do so, it must bring more ambition and more finance to help Africa adapt to the pace of a climate emergency devastating the continent with increasingly serious consequences for the world’s poorest and most vulnerable.” Patrick Verkooijen, in his inaugural annual lecture as GCA CEO, commented
Dr. Akinwumi Adesina, President of the African Development Bank Group: “AAAP provides a unique opportunity for wealthier nations to meet their commitments and help Africa tackle the consequences of climate change. I am optimistic that our partners will deliver the first round of financing of $6 billion to $8 billion that we need for the Africa Adaptation Acceleration
Why One Company Is Going Bean-To-Bar In Africa (Forbes)
Although 70% of the world’s cocoa comes from Africa, chocolate bars are largely produced in Europe and beyond. McCollum wanted to change that equation. “Agricultural products don’t fetch much generally. It’s the value add that creates economic opportunity.”
Whereas the coffee industry has focused on high quality Arabica beans, seen the third wave movement take off in the US and Europe, and created metrics to encourage flavor and quality over quantity, the cocoa industry, McCollum says, is still behind. “If we were to compare chocolate to coffee, we’re still in the 1980s. We have a long way to go to help people taste the different notes in chocolate. Right now, a lot of it is still milk and sugar.” That lends itself to the burgeoning bean-to-bar movement.
Africa 'a land of opportunities', Evarist Bartolo tells conference in Rwanda (Times of Malta)
Malta's foreign minister Evarist Bartolo placed a spotlight on illicit financial flows and how they are damaging citizens of African nations during a conference held in Rwanda.
Bartolo met several ministers from African countries while attending the second Ministerial meeting between the African Union and the European Union, in Rwanda. He also had a meeting with the Commissioner for Social Affairs of the African Union, Amira Elfadil. He told his audience that Malta
Africa is the next frontier for Malaysian exports, says Matrade (Malay Mail)
Malaysia External Trade Development Corporation (Matrade) is encouraging more exporters to venture into Africa due to its rising market opportunities. Among the potential areas that Matrade has identified are automotive components and parts, building materials, infrastructure concessions including highways, ports, public housing and government buildings, information communications and technology (ICT), agriculture and halal industry. It said growth is expected to be strong in East Africa, supported by foreign direct investment (FDI) flows into natural gas resources in Tanzania and oil production in Uganda and Kenya.
International
UNCTAD15 youth declaration identifies priorities for COVID-19 recovery (UNCTAD)
More than 300 young participants from over 70 countries bound by a shared vision to deliver prosperity for all adopted a declaration that calls for inclusivity and resilience in global efforts to recover from the COVID-19 crisis. The Youth Declaration presented at UNCTAD’s 15th quadrennial conference was a culmination of monthlong consultations among young leaders from across the world. It sets out the priorities and recommendations of youth who participated in the UNCTAD15 Youth Forum held in the lead-up to the conference. The youth selected five topics they deemed to be the most crucial to young people to address now: inclusive social and economic development, new economies, climate action, inclusive and equitable learning and youth civic participation. The declaration notes that although the COVID-19 pandemic has created a sea of challenges, a forward-looking picture points towards advancing a “trinity of sustainomics”, encompassing policies consolidating “skill development, strengthening the business environment (including capital markets) and reintegrating equitable solutions for cross-cutting aspects within a green transition.”
Participants on track to conclude negotiations on services domestic regulation at MC12 (WTO)
Participants concluded negotiations on the new disciplines on services domestic regulation at a meeting of the initiative on 27 September. Contained in the “Reference Paper on Services Domestic Regulation”, the new disciplines developed by the initiative aim to facilitate services trade by mitigating the unintended trade-restrictive effects of measures relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards. Their focus lies on the transparency, predictability and effectiveness of procedures that businesses have to comply with for obtaining authorization to supply their services. The Reference Paper is available here.
WTO concludes first phase of advanced workshop on agriculture notifications (WTO)
The Agreement on Agriculture has 12 notification requirements but members’ compliance rate remains low - close to 2,000 notifications are currently outstanding. The Committee on Agriculture has called on members to improve transparency and bring their notifications up to date. The aim of the workshop is to provide much-needed help for those who have requested technical assistance on notifications. The first phase of the workshop focused on how to make notifications on agricultural subsidies by WTO members, an essential transparency commitment under the Agreement on Agriculture. It also highlighted the specific transparency requirements stipulated by the Nairobi Decision on Export Competition. Following the expiry of the five year-grace period for developing country members, these requirements are now applicable to all WTO members.
Factbox: Which countries and blocs are major players at the Glasgow climate summit? (Reuters)
The diverse interests among the 197 signatories to the U.N. Framework Convention on Climate Change (UNFCCC) make for a tough challenge reaching consensus on the next steps to stem global warming. Here are some of the main stakeholders in the U.N. climate conference (COP26) starting in Glasgow on Oct. 31.
LEAST DEVELOPED COUNTRIES (LDCs)This group represents the world’s 46 poorest nations, whose 1 billion citizens across Africa, Asia-Pacific and the Caribbean are particularly vulnerable to climate change, but least responsible for causing it.Along with blocs such as the African Group of Negotiators and the Climate Vulnerable Forum, LDCs are expected to push wealthy countries to honour a pledge to provide $100 billion per year in climate finance to the developing world for the 2020-2024 period - a target they are on track to miss. read more
Brazil, South Africa, India and China make up this bloc of populous, fast-developing countries with high-polluting economies. Each has called on rich countries to provide more climate financing, and have demanded equity through the UNFCCC concept of “common but differentiated responsibilities” – meaning wealthy countries that contributed the most emissions to the atmosphere have a greater responsibility to address it.New Delhi has said the current $100 billion a year pledge is not enough, and that India is unlikely to commit to a net-zero target by 2050. Brazil also wants financial compensation to halt rampant Amazon deforestation. South Africa wants stronger evidence developed countries will come up with the annual $100 billion they have promised, but also says the figure should be more like $750 billion.
Poorer countries spend five times more on debt than climate crisis – report (The Guardian)
Lower income countries spend five times more on debt than coping with the impact of climate change and reducing carbon emissions, according to a leading anti poverty charity.Figures from Jubilee Debt Campaign show that 34 of the world’s poorest countries are spending $29.4bn (£21.4bn) on debt payments a year compared with $5.4bn (£3.9bn) on measures to reduce the impact of the climate emergency.Uganda said it would spend $537m between 2016 and 2020, including funds from international agencies and donors, on climate related projects to adapt the country’s infrastructure and deal with climate emergencies.However, the $107.4m annual budget is dwarfed by external debt payments which will total $739m in 2021, rising to $1.35bn in 2025.And Uganda is not the only low income country that will need to find extra cash to pay debt interest over the next four year, the charity said. By 2025, Jubilee Debt Campaign estimates the 34 countries covered in the research will be spending seven times more on debt payments than limiting the impacts of climate change.
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National
Opinion: Breaking the stranglehold on growth and recovery (Engineering News)
In its ’South African Economic Reconstruction and Recovery Plan’, the government speaks about needing to “break the stranglehold” in which the country found itself towards the end of 2020, particularly regarding the “sustained low levels of investment and growth”. The wrestling metaphor is apt. But this challenge is far from the televised showmanship of WWE Smack Down; at its core is the vital struggle to achieve an equitable, inclusive economy that “benefits all South Africans”.
According to a report from the Institute for Economic Justice, total capital investments in the economy – gross fixed capital formation (GFCF) – in 2019, were only 18% of the country’s gross domestic product (GDP) of which the private sector contributed about 13%. The government wants this to be 30% of GDP by 2030, and the private sector “augmenting” that with 20%.
Sanral’s core mission to mobilise South Africa’s economy through the strategic planning, design, construction, operation, rehabilitation and maintenance of the national roads remains unwavering. It manages more than 22 000 km of the national proclaimed road network, about 4% of the entire network. But that 4% segment carries more than 35% of all vehicle kilometres travelled and more than 70% of long-distance road freight. Thus, from the outset, Sanral was identified as playing an integral part in the Sustainable Infrastructure Development System (SIDS) methodology to guide infrastructure development, along with Transnet and the water boards.
By November 2020, Sanral had awarded approximately R14-billion of the R30-billion road construction projects.
Parliament calls for improved balance of trade between SA and China (SAnews)
The Parliaments of South Africa and China have undertaken to strengthen their oversight role to ensure that democracy works to improve people’s lives in both countries. Addressing the 5th Regular Exchange Mechanism’s virtual session, National Assembly (NA) Speaker, Nosiviwe Mapisa-Nqakula, praised the level of cooperation with which the two countries fought the COVID-19 pandemic.
Mapisa-Nqakula said although trade improved significantly, more needs to be done to improve the balance of trade through heightening South Africa’s capacity for value addition and manufacturing, among others. “Both our countries have already recognised the current balance of trade between our two countries as untenable for the sustenance of mutually beneficial cooperation and agreed to address this,” Mapisa-Nqakula said. Mapisa-Nqakula called for more joint research and development, taking into account opportunities provided by the 4th Industrial Revolution (4IR), as well as greater efforts to address not just the COVID-19 pandemic, but other pandemics that were worsened by the pandemic, including poverty, inequality, and gender-based violence and femicide (GBVF) in South Africa.
South Africa must make solid cases at COP26, BLSA says (Engineering News)
South Africa will be going into COP26, in Glasgow, Scotland, next week with a substantial agenda and both business and government representatives will be going with a view to getting things done, business organisation Business Leadership South Africa (BLSA) CEO Busi Mavuso says in her weekly newsletter. “South African business has been working hard on the challenge it faces to transition to a lower-carbon future. The National Business Initiative has worked hard in charting a path for South African business towards net zero and organised business has been very engaged in debating the future.
Mavuso notes that South Africa needs to access finance for the considerable investments that need to be made to transition to lower-carbon energy.
Mega titanium project kicks off (The Herald)
NYANZA Light Metals has started building a US$350 million titanium dioxide plant in Richards Bay, South Africa, chief executive Donovan Chimhandamba said. Nyanza’s world class chemical and mineral beneficiation complex will produce primarily 80 000 tonnes per annum of titanium dioxide mainly used in the manufacturing of industrial coatings, paints, cosmetics, paper, plastics, and other food ingredients.
Nyanza is a private joint venture between investors from Zimbabwe, South Africa and the South African government. Nyanza construction rollout is divided into three phases. Phase 1, which commenced in May 2021 involves the construction of the Technical Services Centre that will produce sufficient titanium pigment used for ongoing customer and product development work. This phase 1 plant is almost complete and will be commissioned by March 2022
Ensuring coherence among Nigeria’s AfCFTA implementing agencies and the OPS (TheCable)
The African Continental Free Trade Agreement (AfCFTA) presents an array of opportunities for Africa to reap economic and social benefits on the back of possible future improvements in areas such as – infrastructure, reduction of tariff and non-tariff barriers to cross-border trading, renewed funding and improved liquidity.
Nigeria becomes first African country to roll out digital currency (The East African)
Nigerian President Muhammadu Buhari launched the country’s new digital eNaira currency on Monday as Africa’s largest economy looked to tap into the growing popularity of virtual money and cryptocurrencies.With the eNaira, Nigeria becomes the first in sub-Saharan Africa to fully launch a digital currency and joins China and a few other countries using or piloting central bank-regulated electronic tender.The digital currency aims to foster economic growth through better economic activities, increase remittances, improve financial inclusion and make monetary policy more effective.At the launch on Monday in Abuja, President Buhari said the adoption of the Central Bank of Nigeria Digital Currency (CBDC) can increase the nation’s Gross Domestic Product (GDP) by $29 billion over the next 10 years.
Nigeria and the WTO investment facilitation for development (TheCable)
Multilateral international agreements, when properly harnessed, can produce significant economic and social benefits. The reverse is however the case when a participating country is unable to be strategic in such multilateral engagements. This, to a large extent, has been the case with Nigeria and the Trade Facilitation Agreement (TFA) of the World Trade Organization (WTO). The TFA is designed to improve trade facilitation, and despite trade facilitation having the potential of attracting US$170 billion to Nigeria in new trade flows within 20 years, Nigeria has still not been able to implement the TFA, as well as meet many of her WTO obligations.
Warehousing that’s critical to realising the AfCFTA dream (Business Daily)
Kenya has often been referred to as the “gateway to East Africa” as a result of the strategic importance of the port city of Mombasa, one of the busiest ports on the East African coastline, and the central political and economic roles it plays in the region.Since 2008, the Kenyan government has been pushing for rapid economic growth through social, structural and economic reforms under the Big 4 Agenda, which focuses on food security, affordable housing, universal health care, and manufacturing. This is all aimed at turning Kenya into a middle-income country by 2030. This year’s Africa Green Revolution Forum held in Nairobi, brought stakeholders from all over Africa together to discuss how agriculture and agri-food systems can be transformed to improve food security and reduce poverty across the continent.
The AfCFTA not only considers the value that reduced trade friction will have on agriculture but also on all other sectors of African economies. It is estimated that by 2035, implementing the agreement could lift more than 30 million people from extreme poverty and 68 million more from moderate poverty.
Feed millers push for GMO imports to cut rising costs (Business Daily)
Animal feed manufacturers now want the Agriculture ministry to consider the importation of genetically modified yellow maize and soya beans to address the high production costs that have driven up consumer food prices.Their plea follows a directive President Uhuru Kenyatta issued last week to the ministry to look into possible interventions that will lower the high cost of feed. Agriculture PS Hamadi Boga told the Business Daily in an interview that the best measure to lower the current cost of feeds is to give a waiver on importation of raw material.
Diaspora remittances up 20pc in first nine months (Business Daily)
Kenya’s diaspora remittances rose by 20 percent in the nine months to September compared to the corresponding period of last year, underlining the resilience of these inflows at a time when the global economy is still recovering from the Covid-led contraction of 2020.Data from the Central Bank of Kenya (CBK) shows that the remittances for the period stood at $2.71 billion (Sh301 billion), up from $2.27 billion (Sh252.5 billion) in the nine months to September 2020.Remittances are Kenya’s largest source of foreign exchange ahead of horticulture, tea and tourism earnings. They, therefore, provide crucial backing for the shilling in the forex market in addition to the social benefits for recipients.
Regulators reveal KQ as Africa’s costliest airline (Business Daily)
Kenya Airways has the most expensive tickets among airlines operating in Africa, charging more on average than carriers such as Ethiopian Airlines, South African Airways and Air France.A new study by competition authorities representing a total of 24 African countries found that KQ, as the airline is known by its international code, charges the highest average fares on domestic and international flights.The finding shows the national carrier risks losing market share to cheaper rivals like Ethiopian Airlines and new entrants, including Uganda Airlines.KQ had higher fares on most routes where it has competition, though there are a few instances where its rivals charge more.
Ghana, first in line to drive solar adoption in Africa (ESI Africa)
In recent years, South Africa and Madagascar faced droughts while a severe cyclone pummeled Mozambique. Along West Africa’s coastline, rising sea levels threaten major cities like Lagos, Accra and Abidjan. Given the climate crisis urgency, countries such as Ghana are turning to solar power to accelerate the energy transition.
While in Africa, no country is better poised to drive the clean energy revolution than Ghana. The medium-sized country with a 31.7-million population (World Bank figures in 2020) has attracted pan-African institutions and multinational corporations alike. Since 2020, the new Africa free trade zone, the AfCFTA, and US social media company Twitter, have moved their head offices to Accra. Global manufacturers have also set up shop in Ghana. In 2020, Volkswagen opened a vehicle manufacturing facility.
While attracting industry and commerce of this level, Ghana can turn to solar energy in growing a thriving renewables sector. Solar can uniquely meet the challenges posed by climate change to Ghana’s energy sector while powering the country’s economy, which the AfDB estimates to grow by 4% this year. Given that solar energy is still in its early stages, there is a unique opportunity to build a more gender-inclusive sector, with women taking up leadership roles.
Algeria to end gas supplies to Morocco; supply Spain directly -sources (CGTN Africa)
Algeria, which has cut off diplomatic ties with Morocco, will stop supplying natural gas to the country through the Maghreb-Europe pipeline from Nov. 1, three sources with direct knowledge of the matter said. Analysts say technical issues relating to Algeria’s plans to expand the capacity of the Medgaz pipeline could escalate the energy crisis in Spain at a time of soaring gas bills across Europe. Algeria in August hinted at the possibility of ending natural gas exports in October to Morocco of 1 billion cubic meters (bcm), used to produce around 10% of the kingdom’s electricity.
Africa
Zambian president calls for enhanced efforts to promote intra-Africa trade (News Ghana)
Zambian President Hakainde Hichilema on Friday called for increased efforts to promote trade among African countries. President Hichilema made the remarks when he received letters of credence from seven new ambassadors, saying it was imperative for African countries to promote intra-trade before turning to other parts of the world and African countries should take advantage of the opportunities provided by the African Continental Free Trade Area to enhance trade within the continent.
East African countries to discuss economic recovery and investments promotion this week in Kigali (UNECA)
More than 100 decision-makers and economic stakeholders will gather in Kigali this week to discuss the road to social and economic recovery and how to attract investments in East Africa. The meeting known as the 25th session of the Intergovernmental Committee of Senior Officials and Experts (ICSOE), will take place from 27 to 29 October 2021. The ICSOE is the annual gathering of the office for Eastern Africa of the UN Economic Commission in Africa (UNECA) organised in collaboration with the Rwanda Ministry of Finance and Economic Planning. The theme of this year’s meeting is: “Strengthening resilience for a strong recovery and attracting investments to foster economic diversification and long-term growth in Eastern Africa”.
Dr Mama Keita, Director of UNECA in Eastern Africa said that the Covid-19 pandemic has weakened the economic conditions of all countries in the region. She stressed that the ICSOE meeting will provide a platform for various stakeholders from governments to have a conversation with experts and private sectors on the needed economic recovery and on how to re-ignite the engines of trade and investment.
Sub-Saharan Africa expected to recover slowest from the pandemic (Quartz Africa)
Just as the covid-19 pandemic had different impact in different places, the recovery process will be unequal. Some countries’ economies will go back to pre-pandemic levels sooner but others will have to wait longer.Sub-Saharan Africa’s economy is projected to grow by 3.7% this year, but this will be the slowest among the world regions, as advanced markets grow by more than 5% and other emerging markets and developing countries grow by more than 6%, according to the International Monetary Fund (IMF.) The lender attributes sub-Saharan Africa’s lagging growth to slow vaccine rollout and differences in policy.The projections are in the IMF’s latest Regional Economic Outlook for Sub-Saharan Africa. The lender has revised up its 2021 growth projection from its April forecast of 3.4%, mainly due to better-than-expected prospects for non-oil resource-intensive countries. In contrast, it has revised down growth for 2022, from the April 2021 forecast, due to worse-than-expected prospects for non-resource-intensive countries.
Africa must address six barriers to unlock greater climate funding (Engineering News)
Africa is not receiving sufficient climate funding from the available pool and there are six key enablers that must be focused on to unlock that funding, GFA Climate and Infrastructure MD Jonathan First said on October 25 during the Africa-Europe Dialogue on African Climate Finance Priorities for COP26. Firstly, he emphasised that everything done in Africa in terms of funding must align to the United Nations Sustainable Development Goals (SDGs) and environmental, social and governance (ESG) impacts.
Enlightened climate policy for Africa (Brookings Institution)
As the world convenes in Glasgow for the 26th United Nations Climate Change Conference of Parties (COP26), it is time to recognize Africa’s role in averting a climate disaster without compromising the continent’s growth and poverty reduction. The world needs to transition away from fossil fuels. But access to electricity is a human right as enshrined in sustainable development goal 7. Electric power is vital for any economy to advance, and relegating African countries to greater poverty is not the solution to the global climate crisis.
In sub-Saharan Africa, 12 million new people enter the workforce every year. They cannot run successful businesses in the dark. Today, nearly 600 million Africans lack access to electric power, a number that the International Energy Agency (IEA) projects will actually increase by 30 million due to the COVID-19 pandemic. To create jobs for Africa’s burgeoning youth population, we need to find ways to power the continent’s industrialization.
Importantly, Africa bears the least responsibility for the world’s climate crisis but faces its most severe consequences. Forty-eight sub-Saharan African countries outside of South Africa are responsible for just 0.55 percent of cumulative CO2 emissions. Yet, 7 of the 10 countries most vulnerable to climate change are in Africa. Still, Africa will play a major role in solving the global crisis.
COP26: African Development Bank’s climate champions celebrated in Glasgow (AfDB)
Ahead of the COP26 climate conference in Glasgow, St. Andrew’s Cathedral, the iconic city landmark, will host an exhibition featuring ChangeMakers, a campaign led by Climate Investment Funds. The African Development Bank is a partner of the campaign and implementing agency of Climate Investment Funds. The Bank nominated several climate champions from the continent who actively work in the field of climate action. Their images will be projected on the façade of St. Andrew’s Cathedral until one week after the end of COP26.
Leverage natural resources for infrastructural development- Opong-Fosu urges African countries (Graphic Online)
A former Minister of Local Government and Rural Development, Mr Akwasi Opong-Fosu, has urged African countries to leverage their natural resources for infrastructural and technological development. Mr Opong-Fosu, who made the call at the 2021 UK-Africa Trade and Investment Conference in London, said the continent’s annual infrastructure needs of about $108 billion could be addressed if the “natural resources for infrastructure” strategy was adopted alongside tackling illegal financial flows. Speaking on the topic, “Africa Economic Growth Potential: Challenges and Opportunities”, the former minister said for any renewed interest in Africa to be genuine and inure to the benefit of the people, infrastructure was key.
Top 200 African Banks: ‘Nigeria is a long-term strategic, important market’, says Ecobank’s Ayeyemi (The Africa Report)
As one of the pioneering pan-African financial institutions, Ecobank should be enjoying its halcyon days with the region’s economies accelerating plans for integrating their markets and using new technologies to bring banking services to a fast-widening customer base. Ecobank’s headquarters in Lomé, Togo, is a short drive from the newly built secretariat of the African Continental Free Trade Area in Accra, Ghana – the nerve centre of the continent’s single market. But history intervened. First, in the shape of the legacy of management ructions a decade ago, which included some bad investment decisions. Then, weaker commodity prices hit the export economies of Ecobank’s key markets in 2016, to be followed by the shock of the Covid-19 pandemic.
The Eastern and Southern African Trade and Development Bank (TDB) and the Islamic Corporation for the Development of the Private Sector (ICD) have signed a Memorandum of Understanding (MoU) with the purpose of advancing cooperation in the provision of finance and investment to private sector in their common Member States in Eastern and Southern Africa.
The agreement establishes a framework for both institutions to collaborate with the aim of financing eligible transactions in targeted countries sponsored by the private sector or non-sovereign backed projects. Possible financing solutions to be considered include syndication and co-financing opportunities, risk sharing, bilateral financing and/or medium term liquidity lines of credit, corporate and project finance, and public-private partnerships.
US Renewed Prosper Africa Trade Initiative (East African Business Week)
The United States (US) administration announced in July 2021 that the Prosper Africa initiative, launched in 2019 under the Trump administration, would be renewed and reinvigorated to increase reciprocal trade.The initiative will focus on improving trade and investment in sectors such as infrastructure, energy and climate solutions, healthcare and technology.An additional USD 80 million will reportedly be requested to support its projects. The 17 US government agencies working as part of this initiative have a mandate to, among other things, empower African businesses, offer deal support and connect investors from the US with those in Africa.
The value of imports and exports between the US and Africa between January and July 2021 outlines the current, non-reciprocal nature of trade between the two regions.Data shows the US imported USD 6.3 billion more goods from Africa than it exported to the continent. The United States Census Bureau (Bureau) revealed that in this timeframe, the US exported goods to the value of USD 14.7 billion to Africa, and it imported goods from Africa to the value of USD 21 billion.
Europe-Africa: An Indispensable Partnership (GOV.SI)
On 26 October, foreign affairs ministers of the European Union and the African Union will gather in Kigali for the first AU-EU ministerial meeting since the onset of the COVID-19 pandemic. This gathering is of particular importance, as it will set the stage for the next AU-EU Summit in 2022.Both events underscore the relevance of the EU-Africa Partnership as a key priority of our foreign policies. It is not only geography that makes Europe and Africa natural allies. Both continents share a deep attachment to the principles of multilateralism, international cooperation and the rules-based international order. Our political, economic and social futures are bound together.
Africa-EU relations: Strengthening the continent-to-continent dialogue on sustainable development (ECDPM)
In this synthesis note for the European Think Tanks Group, DIE’s Niels Keijzer, ECDPM’s Kathleen van Hove and ACET’s Freda Yawson discuss the relationship between Africa and Europe and highlight five proposals for strengthening the continent-to-continent dialogue on sustainable development.
China Says Allegations It Causes Debt Trap for Africa Are False (Bloomberg)
African nations’ debt problems are a historical issue, and also the result of rising protectionism and currency factors, Zhou Liujun, vice chairman of China International Development Cooperation Agency told reporters in Beijing on Tuesday. China fully considered the debt condition of African nations and their repayment capabilities when offering loans, Zhou said, adding that it will “strengthen cooperation and communication with different parties to help African countries to face their debt problems.”
International
LDC trade ministers adopt declaration on trade-related priorities ahead of MC12 (WTO)
In her opening address, WTO Director-General, Dr Ngozi Okonjo-Iweala, reiterated her commitment to working towards a substantive outcome for LDCs at MC12. She updated ministers on the latest progress in the negotiations on trade and health, fisheries subsidies, agriculture and development. She also underlined that trade must play a role in helping LDC economies rebound and urged WTO members to show realism and flexibility to achieve results at MC12 that will strengthen the multilateral trading system. The Director-General also praised members for agreeing, in June 2021, to extend the deadline for LDCs to protect intellectual property under the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights.
LDC ministers said at that meeting that MC12 provides an opportunity to lay the groundwork for building a stronger and more inclusive global economy geared towards raising living standards and protecting the environment. LDC ministers commended DG Okonjo-Iweala for her efforts aimed at generating concrete results at MC12.
India seeks clarity over digital trade (Mint)
Developing countries led by India and South Africa are set to clash with developed countries at the World Trade Organization’s (WTO’s) ministerial next month on permanent prohibition of customs duties on electronic transmission, which was being pushed by the Group of Seven (G7). “Electronic transmissions, including the transmitted content, should be free of customs duties, in accordance with the WTO Moratorium on Customs Duties on Electronic Transmissions. We support a permanent prohibition of such duties,” G7 trade ministers, including Canada, France, Germany, Italy, Japan, UK and US said in a joint statement on Friday.
Adopting G7 Digital Trade Principles that will guide the G7’s approach to digital trade, the trade minister said they oppose digital protectionism and authoritarianism. “We are concerned about situations where data localization requirements are being used for protectionist and discriminatory purposes, as well as to undermine open societies and democratic values, including freedom of expression,” they said. India and South Africa have stepped up pressure on WTO ahead of the 12th ministerial meeting (MC-12) to begin on 30 November, urging it to review a moratorium on imposition of customs duty on electronic transmissions so that developing countries can generate more revenues.
COP26: Praise for updated national climate plans, but ‘nowhere near’ goal (UN News)
The findings update an earlier report which synthesizes plans outlined by countries in their Nationally Determined Contributions (NDCs) under the Paris Agreement on climate change, which aims to limit global temperature rise to 1.5 degrees Celsius. Parties to the accord requested the Synthesis Report, published in September, to help them in assessing progress ahead of the COP26 UN climate change conference, which opens this weekend in Glasgow, Scotland. The update has been provided so that countries will have the latest information to consider at the conference.
Plastics dialogue on track for very positive MC12 outcome, says co-coordinator (WTO)
The proposed statement reaffirms participants’ commitment to strengthening the trade dimension of efforts to tackle plastics pollution through the IDP. It lists the actions participants would take from MC12 onwards and in the run-up to the 13th Ministerial Conference. These actions include sharing experience on data collection regarding trade flows and supply chains, strengthening cooperation with other international regulatory processes and identifying environmentally sustainable trade policies and mechanisms.
Ocean economy offers a $2.5 trillion export opportunity: UNCTAD report (UNCTAD)
A new UNCTAD report estimates the export value in ocean-based industries at $2.5 trillion, according to the latest available data, covering 2018. The report, entitled “Advancing the Potential of Sustainable Ocean-Based Economies: Trade Trends, Market Drivers And Market Access”, draws on a recently published novel international ocean economy classification. The figure constitutes the first conservative benchmark from which to measure the evolution of trade in ocean-based goods and services.
For goods, the largest sectors were those with higher added value: marine high-technology manufactures, ships, port equipment and parts thereof. The leading exporters of ocean-based goods are developed countries from Europe, developing countries from Asia (even when China is excluded), followed by countries in the Americas (developed and developing). A double-digit average export growth was observed for certain products with high added value, such as frozen finfish parts and fillet in the case of marine fisheries between 2016 and 2018, showing increased consumption trends, particularly in Asia, Europe and North America.
The leading exporters of ocean-based goods and services were developed countries in Europe, followed by developing countries in Asia and countries in the Americas.
The future of world trade depends on US leadership (The Hill)
The fate of the world’s leading trade institution hangs in the balance. The World Trade Organization (WTO) has been in a state of sustained, low-burning crisis for nearly five years. And in less than two months, trade ministers will gather in Geneva with the hope of reviving it by concluding negotiations on a wide range of issues. Failure to achieve meaningful results could hasten the WTO’s slide toward irrelevance in setting or maintaining the basic rules of international trade.
Longer Delivery Times Reflect Supply Chain Disruptions (IMFBlog)
Supply chain disruptions have become a major challenge for the global economy since the start of the pandemic. Shutdowns of factories in China in early 2020, lockdowns in several countries across the world, labor shortages, robust demand for tradable goods, disruptions to logistics networks, and capacity constraints have resulted in big increases in freight costs and delivery times.
Our chart of the week shows suppliers’ delivery times in the United States and the European Union have hit record highs since late 2020 (the data goes back to 2007). IHS Markit’s suppliers’ delivery times index is constructed from Purchasing Managers Index business surveys and reflects the extent of supply chain delays.
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National
the dtic Supports SA Pharmaceutical Companies to Exhibit at Africa Health 2021 (The Department of Trade Industry and Competition)
The Department of Trade, Industry and Competition (the dtic) has provided support to ten South African Medical Device manufacturers to enable them to showcase their manufacturing capabilities during the virtual Africa Health 2021 exhibition that will take place from 25–29 October 2021. Africa Health 2021 will enable the South African Medical Device exhibitors to meet and develop business relations with buyers and distributors from across Africa and the world, thereby increasing the opportunity for exports of South African-made products. Africa Health is the continent’s largest healthcare exhibition and congress. It is a leading platform for healthcare professionals and medical experts across Africa to collaborate and share insights to addressing the continent’s specific healthcare needs.
According to the Deputy Minister of Trade, Industry and Competition, Mr Fikile Majola, there are approximately 140 medical device companies in South Africa who are involved in some degree of local manufacture or in the medical device value chain, most of which are Small and Medium Enterprises who require government’s assistance to profile and market their capabilities at the South African Pavilion that is part of the Africa Health Exhibition 2021. “The SA Pavilion will showcase South African capabilities in this sector boosting confidence in local capability and promoting deepening of local value chains that government is advocating for. The South African Medical Devices industry is estimated to be worth R20 billion and has one of the highest potentials for growth. Despite the value of the local market, South Africa is still net dependant on imports of medical devices,” says Majola.
Hydrogen Society Roadmap to guide South Africa’s hydrogen rollout – Nzimande (Engineering News)
The Hydrogen Society Roadmap (HSRM), which was approved by Cabinet on September 14, provides a “clear indication” of how hydrogen and fuel cell technologies could be a “game changer” for the South African economy, Science and Innovation Minister Blade Nzimande noted during the Hydrogen Economy Indaba – Series 3 event on October 21. He added, however, that, before South African could derive the full benefits of a hydrogen economy, several challenges had to be overcome. These included the further development of hydrogen technology, which Nzimande said had yet to fully mature to the point where it could be deployed in a cost-effective manner and at scale. Secondly, he said, the infrastructure to support the deployment of hydrogen energy, particularly in mobility applications, such as in vehicles, was almost non-existent in South Africa.
Taking on these challenges was only possible if local communities participate in the reskilling opportunities to support the hydrogen economy, said Nzimande.
TZ- Burundi trade ties boom timely (Dailynews)
TANZANIA and Burundi have, for decades, enjoyed good diplomatic ties and as years unfold there have been cementing of the relations, extending the same to trade ties. The two East African Community (EAC) member states have been working together on several fronts. A visit to Burundi by President Samia Suluhu Hassan on July 16 and 17 this year and the visit by her Burundian counterpart, Mr Evariste Ndayishimiye to Tanzania have brought the partnership to greater heights.
Tanzania is continuing to upgrade the ports of Dar es Salaam, Kigoma, Karema, Kasanga and Kabwe to ease the movement of people and goods. Strengthening of trade relations has been seen as technocrats from Works and Transport Ministries from both countries had their strategic meeting in August, special focus being come up with a partnership in the use of Dar es Salaam Port and the Standard Gauge Railway (SGR).
The factory that is at 40 per cent of its completion set for October next year will, among other things, provide employment opportunities to Tanzanians, with 3,000 direct employments and 7,000 other indirect jobs.
An improved railway line connecting the two countries will definitely play a crucial role in increasing the volume of Burundi’s cargoes imported through Dar es Salaam Port. We witnessed last Friday, President Ndayishimiye laying a foundation stone for the construction of a 400bn/- Ntracom fertiliser factory being built at Nala area in the capital city Dodoma and that is owned by a Burundian.
Millers to be fined for delayed sugar cane payments (Business Daily)
Sugar millers will be penalised for delaying payments for sugar cane deliveries if Parliament adopts proposed changes to the law, in a bid to protect farmers. Parliament last week approved changes to the Sugar Bill, 2019 that will require millers to pay farmers within a given period for cane delivered, failure to which they shall pay fines.Lawmakers voted by acclamation to include the penalty in the Bill that was passed and now awaits presidential assent.The changes are aimed at protecting farmers who have taken a huge hit from the struggles of the once-lucrative sector.Cash-strapped sugar millers owe farmers billions of shillings in delayed payment, amid cash flow struggles that have seen the State opt to lease them in a bid to revive the industry.
Cement companies expand clinker production to lower costs (Business Daily)
Cement firms are investing billions of shillings to build new or expand clinker plants as local production of the raw material is cheaper, making it a key competitive advantage.A report by the National Independent Clinker Verification Committee found that six companies have started or are set to embark on expanding clinker plants capacity by 4.4 million tonnes per annum.
“By 2025, an additional clinker capacity of 4.4 million tonnes will be produced by six players, which shall increase the industry’s production capacity to 10.7 illion tonnes,” says the report of the committee comprising cement firms.The committee, formed after a section of players with the biggest clinker production capacity lobbied the State to raise import duty on the commodity from 10 to 25 percent, says firms producing their own clinker have a significant cost advantage.
CBN’s eNaira for launch today (The Nation Newspaper)
President Muhammadu Buhari will unveil the Central Bank Digital Currency (CBDC), known as the eNaira, today at the State House, Abuja. The Central Bank of Nigeria (CBN) had in February barred banks and financial institutions from dealing in or facilitating transactions in cryptocurrencies, warning of “severe regulatory sanctions” and freezing accounts of firms it said are using them. CBN Governor Godwin Emefiele has said the eNaira would operate as a wallet against which customers could hold funds in their bank account.
“The eNaira, therefore, marks a major step forward in the evolution of money and the CBN is committed to ensuring that the eNaira, like the physical Naira, is accessible by everyone,” the bank said in a statement.
ePayment deepens customer satisfaction, says Remita (The Nation Newspaper)
Business Lead, Special Projects and Fintech Partnerships, SystemSpecs, Kayode Osinulu, has called on stakeholders in the logistics and supply chain sector to adopt e-payment to improve customer satisfaction and retention.
During the virtual panel at the Conclase Business Webinar 2.0, he said the move would fast-track the delivery process and increase accountability for sustenance. Osinulu said epayments remain a game-changer for the logistics industry to create more value and manage the process preceding pick-up down to delivery.
73% Debt Servicing Puts Nigeria’s Economy On Edge (LEADERSHIP)
he federal government plans to borrow a fresh N6 trillion next year to finance the 2022 budget, thus further increasing the country current debt portfolio. Out of this, it also hopes to spend almost N4 trillion to service its outstanding debt obligations. Financial analysts and economists have described the country’s borrowing spree as quite worrisome and a burden for the next generation. This situation, experts believe, would further put the economy on edge, more so as Nigeria’s debt to revenue ratio is very high at 73 per cent.
Over the past five years, the country has spent $5.2 billion to service its external debt, and N8.6 trillion for domestic debt, which analysts say is worrisome,.
The International Monetary Fund (IMF), however, advises countries to reduce debt financing and rely on domestic revenue generation to finance spendings.
How Nigerian brands can win in Africa, against all odds (Nairametrics)
The year 2021 has probably seen the worst food inflation in Nigeria, and even the statistics agree with this. Compared to 2020 which saw 19.56% inflation in December, and the year before where we had a 14.67% food inflation in December 2019. The year 2021 has broken all past records already with almost 23% food inflation in March 2021, and the year still has four months to go. Besides the constantly increasing price of the food items, maybe what one should consider more worrisome is the availability. A 2021 Global Report on Food Crises (GRFC 2021) – prepared by 16 leading global and regional organizations belonging to the Global Network against Food Crises – has listed Nigeria among six countries in Africa with worsening food crisis, with predictions that place 13 million Nigerians at risk of falling into acute food insecurity in the coming months. The report recommended the federal government establish a food reserve to avert a crisis likely to arise from food shortages. The reasons for the imminent food insecurity and dangerously increasing food inflation are not far-fetched. Simple secondary school economics taught us that inflation is the higher prices that result from too much money chasing few goods.
The next practical question will now be – where did all the goods go?
Reduce manufacturing cost for development - Sampson Asaki (GhanaWeb)
Sampson Awingobit Asaki, Executive Secretary of the Importers and Exporters Association of Ghana, has called on the government to reduce the cost of production for manufacturers to facilitate development. According to him, the government must take a critical look at the operational cost of companies, especially the utility tariffs, to help manufacturers to deal with production costs, which is currently a big challenge rendering so many businesses unprofitable.
Meridian Ports Services commissions fourth berth (News Ghana)
The Meridian Ports Services (MPS) Terminal Three has commissioned the fourth Berth for business to double its total annual handling capacity to 2.5 million TEUs. Mr Mohammed Samara, Chief Executive Officer of MPS told the Ghana News Agency that MPS is optimistic that the investments made in the facility would make Tema a force to reckon with in the transshipment business.
He said, “the fourth berth has to come, this would be mainly the next step that we would take to secure the transshipment hub concept in Tema Port and to add capacity to cater for the AfCFTA because the continental trade needs infrastructure and connectivity.”
Trade with Turkey set to ‘rise dramatically’: Nigerian official (Yeni Şafak)
Over the next few years, trade between Turkey and Nigeria will rise “dramatically� from its current level of $2 billion, according to Nigeria’s top trade official.Speaking to Anadolu Agency on the sidelines of the Third Turkey-Africa Economic and Business Forum in Istanbul, which ended Friday, Richard Adeniyi Adebayo, Nigeria’s industry, trade and investment minister, called the forum a “step in the right direction.�
“I believe it will bring our countries closer,� said Adebayo. “And I also believe that it gives us an opportunity to discuss the various areas of interest, especially trade opportunities, that exist between both countries.�
‘Technology Will be Vital to Increase Remittance Inflow’ (THISDAY)
The Chief Executive Officer, Baxi, Degbola Abudu, has revealed that improved technology adoption would increase remittance inflow in Africa especially Nigeria, noting that the global remittance market is estimated at $25million inflow opportunities. He also stated that to serve the more than 55% of Nigerian consumers currently excluded from formal financial services, Nigerian fintechs that have built strong agent networks that are the crucial interface to reach Nigeria’s 31million financially underserved and 67million financially unserved populations.
He remarked that the newly launched electronic payment platform has the technology and mobile wallet agents, while Baxi have the agents, so there is opportunity for connection between both platforms, “so the MFS agents who have mobile wallets can move money to the Baxi agents to give those people who requests at agent location and vice-versa.”
Roadmap for a more inclusive and fiscally sustainable post-COVID economy in Mauritania (World Bank Blog)
The COVID-19 crisis has severely affected the Mauritanian economy and reversed years of poverty reduction. As a result, the economy contracted by 1.5% in 2020. This led to employment and income losses, pushing an estimated 48,000 people into extreme poverty. Like during the commodity crisis of 2015 , the COVID-19 shock presents the government with an opportunity for further policy reform and steers the economy in a new direction, which may put it in a stronger position to weather future shocks. Our latest Public Expenditure Review shows that the government can take several measures to maintain fiscal sustainability in the future while improving service delivery in key social sectors.
Africa
Transcript of October 2021 African Sub-Saharan Press Briefing (IMF)
The pandemic has shown us the deeply interconnected nature of our planet. Global challenges such as ending the current pandemic or addressing climate change require global solutions. The path to addressing both these major challenges on a global scale runs directly through Sub-Saharan Africa. Before taking your questions, I would like to draw on our latest assessments of the economic outlook, challenges, and immediate policy priorities. But before delving into that, I would like to first take a moment to reflect on how the region is contending with the ongoing pandemic. The global health crisis has revealed two very different realities. What has emerged is two worlds. One mainly of the most advanced economies where recovery continues apace, fueled by a plentiful vaccine supply. The other in vulnerable emerging and developing economies where differences in policy space and the slower vaccine rollout is slowing progress.
Since April when we last updated our Regional Economic Outlook, Sub-Saharan Africa has been hit by a third wave of the pandemic, this time with the more contagious delta variant with infection rates often rising to triple, quadruple the rates that we’ve seen in earlier waves. Thankfully, this wave has now eased over the past month or so, but there is little reason to believe there won’t be repeated waves going forward.
AfCFTA will only succeed if the RECs and protocols are addressed-Addy (News Ghana)
The African Continental Free Trade Area (AfCFTA) will only succeed if the Regional Economic Commissions (RECs) and AfCFTA protocols are addressed, Mr J Wendell Addy, the Chairperson for the Africa Private Sector Summit (APSS), has said. He said it was important the AfCFTA Secretariat successfully implemented these protocols signed by the Heads of States at the Regional and Continental levels. Mr Addy made these remarks at a press conference to end the four days APSS summit held in Accra. The Summit was on the theme: “Awakening Africa’s Sleeping Giants in Implementation of RECs and AfCFTA – Leveraging Strategic Opportunities for Africa’s Turnaround.”
The Chairperson said if the Continent truly wanted AfCFTA to succeed then the business community must have an engaging environment. “They should engage in areas like infrastructural development on the Continent and the issue of common currency,” he added.
AfCFTA/China sign MoU on establishing Expert Group on Economic Cooperation (GhanaWeb)
The Africa Continental Free Trade Area (AfCFTA) Secretariat and the Ministry of Commerce of China, have signed a memorandum of understanding (MoU) on establishing an Expert Group on Economic Cooperation. The virtual event, was signed between Mr Wamkele MENE, Secretary-General of the AfCFTA Secretariat and Mr Qian Keming, Vice Minister of Commerce of China. Accordingly, with this MoU, the AfCFTA Secretariat and Ministry of Commerce of China agreed to establish an Expert Group to collaborate in the following areas such as experience-sharing on intellectual property rights, customs procedures, digital trade, competition policy and exchange concepts, policies and share progress on the Institutional capacity and implementation of the AfCFTA. Mr Mene in his remarks noted that China and Africa shared common aspirations rooted in mutual cooperation and the need to build China-Africa comprehensive strategic cooperative partnership adhering to the principle of achieving shared growth and through discussion and collaboration.
“China is a strong partner to Africa and has provided Africa with significant development and investment support over the past decade,” he said. “China continues to invest in infrastructure and industrial projects in Africa via its Belt and Road Initiative, and has opened up its market of 1.4 billion consumers to African products.”
H.E. Professor Ameenah Gurib-Fakim, the former President of Mauritius and Laureate of the 2007 L’Oréal-UNESCO Prize for Women in Science, delivered a trenchant address at the African Export-Import Bank’s (Afreximbank) fifth annual Babacar Ndiaye Lecture on “the importance of science, technology and innovation in the transformation of African economies”. She called on African leaders to close the region’s science and technology gap to take full advantage of the African Continental Free Trade Area (AfCFTA).
Professor Gurib-Fakim, delivered the keynote speech at the Bank’s annual flagship event and laid bare a raft of statistics that showed that Africa is falling well behind the rest of the world in science, technology, and innovation (STI). Only 0.1% of all patent applications are registered in Africa, compared to 65% in Asia and 25% in North America. Africa is also responsible for only 2% of the world’s research output and 1% of research spending. Furthermore, the laggards in Africa have 11 researchers per million people whilst the best performing countries in the world, such as South Korea and Denmark had between 7,000-8,000 scientists and researchers per million people.
“How can a continent with the largest share of arable land, a continent with the youngest population, a continent that has fueled all of the world’s industrial revolution, a continent that has helped drive the mobile phone industry, a continent that is at the cusp of supporting the world’s energy transition to greener technology with a large store of rare earth deposits accept such dismal statistics?” she asked.
African Railway Roundtable demands AfCFTA Railway Forum (The Nation Newspaper)
The Director, African Railway Roundtable, Mr Olawale Rasheed has called on the African Union Development Agency (AUDA-NEPAD) and the secretariat of the African Continental Free Trade Area (AFCFTA) to urgently convey an “AFCFTA Railway Forum.” In a statement issued in Abuja, Rasheed who is also the Managing Director of African Railway Consulting Limited said “the Forum is imperative because the question of connectivity and ease of movement of goods and services are at the heart of common economic union and prosperity envisaged under AFCFTA.
Securing Regional Market for African Airlines through SAATM (THISDAY)
After the demise of many national carriers in Africa, the continent lost its air travel market to mostly European and Middle East carriers, which now control over 70 per cent of the market. So the African Union established the Single African Air Travel Market to increase market share for African airlines and rejig the economy of the region.
For the aviation industry to develop and contribute significantly to Gross Domestic Product (GDP) of many countries in Africa, create thousands of jobs in the continent and produce skilled manpower as pilots, engineers, air traffic controllers, schedulers, airspace managers and others, African airlines must dominate the African market.
The Single African Air Transport Market (SAATM) in 2018 as a way to push African airlines to begin to nibble into the huge market dominated by foreign carriers.
Africa beyond Aid is possible - UNDP (News Ghana)
Ms Ahunna Eziakonwa, the Director of UNDP Regional Bureau for Africa, says the continent can commence a journey towards an Africa Beyond Aid through a collective resolve to move it to a place of empowered lives. She urged African businesses to take advantage of the African Continental Free Trade Area (AfCFTA) to add value to products across sectors to meet the demands of the market. Ms Eziakonwa said this at the closing ceremony of the three-day Youth Connekt Africa Summit in Accra on the theme: “Africa Beyond Aid – Maximising Opportunities in the AfCFTA”.
Ms Eziakonwa said she had been inspired to see the work of the continent’s courageous producers from fabric manufacturers of the legendary kente, to shea butter processors up north, which had promoted Africa in the world market. She said Africa’s quest to rid itself of the dependence on aid required action and transformation in an environment that intentionally supported the youth to succeed.
Members of the Africa Investment Forum team showcased two projects during a virtual investor roundtable as the continent looks to boost its healthcare sector and attract much-needed investment in the wake of the Covid-19 pandemic. The projects, jointly worth around $140 million and located in East and West Africa, were previewed for potential investors.
Nicolaou said Africa’s disease burden—the highest of any continent—made preventive care, including vaccines, all the more important for Africans. The need for pharmaceuticals will increase the requirements for partnerships that can overcome constraints such as research & development. Other challenges mentioned by the participants include overcoming cold chain and last-mile-delivery issues, and ways to scale up pilot technologies, such as the use of drones to facilitate vaccine delivery.
Health is one of five priority investment sectors under the Africa Investment Forum’s Unified Response to Covid-19 pillars. The others are agribusiness, energy and climate change, ICT/Telecoms, and industrialization and trade.
Climate change triggers food insecurity, poverty and displacement in Africa (UN Africa Renewal)
“In sub-Saharan Africa, climate change could further lower gross domestic product (GDP) by up to 3% by 2050. This presents a serious challenge for climate adaptation and resilience actions because not only are physical conditions getting worse, but also the number of people being affected is increasing,” she said in the foreword.
Food insecurity: The compounded effects of protracted conflicts, political instability, climate variability, pest outbreaks and economic crises, exacerbated by the impacts of the coronavirus disease (COVID-19) pandemic, were the key drivers of a significant increase in food insecurity. A desert locust invasion of historic proportions, which began in 2019, continued to have a major impact in East and the Horn of Africa in 2020. Food insecurity increases by 5–20 percentage points with each flood or drought in sub-Saharan Africa. Associated deterioration in health and in children’s school attendance can worsen longer-term income and gender inequalities. In 2020, there was an almost 40% increase in population affected by food insecurity compared with the previous year.
Investments: In sub-Saharan Africa, adaptation costs are estimated at US$ 30–50 billion (2–3% of regional gross domestic product (GDP)) each year over the next decade, to avoid even higher costs of additional disaster relief. Climate-resilient development in Africa requires investments in hydrometeorological infrastructure and early warning systems to prepare for escalating high-impact hazardous events.
Five ways in which finance for climate adaptation in Africa falls short (The Conversation)
Back in 2009, the world’s wealthier nations pledged to mobilise US$100 billion a year by 2020 to help developing countries cope with climate change. The funding would be used to adapt to the impacts of climate change and reduce or prevent emissions. The world’s poorest countries are expected to be hit hardest by climate change extremes such as droughts, floods and cyclones. And African countries are among the most vulnerable to those impacts on food security, health, economies and ecosystems. For example, crop yield loss projections are larger for tropical regions of Africa. And poorer populations in sub-Saharan Africa are at highest risk of malnutrition. At the same time, Africa’s contributions to greenhouse gas emissions causing global warming are among the lowest globally. Without financial support, climate change is projected to push tens of millions more Africans into extreme poverty by 2030. Our new research, based on data from the Organisation for Economic Co-operation and Development (OECD), tracked funding for adaptation to African nations from 2014 to 2018. The funding came from governments in wealthy countries and development banks. The work is important as there has been no extensive mapping of climate finance to Africa to date.
Profit from illicit mining, not political power, behind insurgency in Great Lakes (The East African)
Huge profits from smuggling of minerals is the main reason behind a surge in rebel movements in the Great Lakes Region of Africa. And in what could provide further evidence that natural resources, rather than a search for political power is behind insurgencies, a UN Special Envoy this week said countries connected by trade must be involved in ending the fighting.Huang Xia, the UN Special Envoy for the Great Lakes Region says there must be unity among regional countries, and those that import minerals from the region to ensure the mines do not become a centre of bloodshed.Mr Huang was speaking at the Annual Open Debate on the Great Lakes Region at the UN Security Council this past Wednesday in New York under the theme; “Supporting the renewed commitment of the countries of the Great Lakes region to peace and development.”
AU-EU ministerial meeting kicks off in Kigali (The New Times)
About 500 participants including over 60 foreign affairs ministers of the European Union and the African Union will ton Monday court in Kigali for the AU-EU Ministerial Meeting. It’s the first summit that will be hosted since January 2019. Ministers are expected to exchange views on the EU-AU partnership and how to strengthen cooperation, reads part of a media advisory note.
Canada-Africa collaboration: Prime Minister Justin Trudeau to address Africa Accelerating 2021 (Africanews)
The Canada-Africa Chamber of Business is pleased to announce Prime Minister Justin Trudeau will address the opening of its 3-day programming from 26 to 28 October 2021. ‘‘The Prime Minister’s message will focus on Canadian efforts at home and on the African continent for the restart of African economies,’’ said Sebastian Spio-Garbrah, Chair of the Board of The Canada-Africa Chamber of Business. He added that ‘‘the address will underscore that Canada and Africa have many opportunities to be strong partners, with reference to existing programs, future opportunities and his visit last year to the African Union’’.
International
Exporting out of Covid-induced economic crisis (The Express Tribune)
The dynamics involved in international trading activities are becoming as complex as ever as the world recovers from the Covid-19 pandemic-induced shock and reopens borders. The Trade and Development Report 2021 of Unctad predicts that the global economy will grow 5.3% as it recovers from the adverse impact of Covid-19. This will be the fastest growth in the last five decades. The report also suggests that the impact of the pandemic on the global South is greater than the impact it felt during the previous financial crisis. It is expected that the world economy will lose approximately $13 trillion between 2020 and 2022 relative to the pre-pandemic predictions of world output level.
DDG Zhang: Cooperation in trade and investment needed to revitalize world economy (WTO)
trade and investment have been phenomenal drivers of economic growth and poverty reduction in many parts of the world over the past 30 years. In particular, participation in global value chains has been a force for economic diversification, job creation and development. With servicification and digitization, global value chains have made trade and investment flows increasingly interlinked and mutually reinforcing. They are the “two sides of the same coin”. The imperative to recover from the COVID-19 pandemic has made this twin role of trade and investment flows more important than ever before. The pandemic has brought massive disruptions to all aspects of our social and economic lives. In particular, it has acted as a massive ‘stress test’ both for the world trade and investment — causing unprecedented shocks to global value chains. In 2020, the value of global trade in goods and services fell by 9.6%. Global investment was hit much harder — with FDI flows falling more steeply, by 35%. Greenfield projects in developing countries which are key for industrial and infrastructure development fell by 42% in 2020. Today’s hyper-connected global economy has made the world more susceptible to shocks — but it has also made it more resilient when they strike. The multilateral trading system has again stood the test of time more than many expected as its core principles and rules helped to prevent the world from sliding into a full-fledged protectionism.
Coordinated global response key to MSMEs’ post-pandemic economic recovery — DDG Zhang (WTO)
The COVID-19 pandemic has had significant negative impact on our citizens and our businesses, in particular on those operating as MSMEs all over the world. MSMEs are the backbone of many economies. According to the WTO’s research, MSMEs represent 95 per cent of companies across the globe and account for 60 per cent of the world’s total employment. They contribute to around 35 per cent of GDP in developing countries and around 50 per cent in developed countries. They are major employers of women and young people, and a key driver of innovation and economic growth. Unfortunately, when the whole world is facing the challenges of the COVID-19 pandemic, MSMEs are among those that have been hit hardest by the crisis. A study by the UN International Trade Centre shows that 60% of micro and 57% of small businesses have been strongly affected by the pandemic, compared with 43% of large firms. Due to their limited resources, surviving the crisis has been daunting for MSMEs. Therefore, it is important to have policies in place to mitigate the negative impact of the pandemic on MSMEs. A coordinated global response is crucial to helping MSMEs respond and recover from the pandemic.
At the WTO, Members have been considering MSME-related issues through various policy dialogues. Focused discussions are taking place within the MSMEs Informal Working Group. The Group has recently finalized its draft ministerial declaration. Some WTO Members, including members of the MSME Group, also issued a “Statement on highlighting the importance of MSMEs in the time of COVID-19” in May 2020. This statement called for further actions to foster the involvement of MSMEs in international trade and to ensure that supply chains remain open and connected. Members expect more to be delivered soon particularly at the WTO’s upcoming 12th Ministerial Conference.
Initial steps toward the founding of GASEZ (Global Alliance of Special Economic Zones) were taken today by special economic zones associations from across the globe. The alliance will enhance global networking to facilitate trade and investment promotion, spur collective policy advocacy for SEZs, and support programmes for the exchange of best practices and modernization of the zones.
The future establishment of a global alliance of special economic zones (SEZs) was tabled this week at UNCTAD’s 7th World Investment Forum amid recognition that the zones are critical for economic development but need to adapt to keep pace with a changing climate, digital transformation and other factors influencing their viability.
“SEZs are faced with a myriad of challenges and opportunities arising from the triple mega-drivers: the new industrial revolution, the sustainability imperative and the realignment of global economic governance,” said James Zhan, UNCTAD investment and enterprise director. “Mobilizing global support for SEZs and their endeavour to attract investment for sustainable development requires a concerted effort by the SEZ community. This alliance now provides this space,” he said.
The WCO Virtual Working Group (VWG) on Gender Equality & Diversity (GED) met through an online meeting on the 20th of October to discuss gender responsive and inclusive trade facilitation. The key point 4 of the WCO Declaration on Gender Equality and Diversity in Customs was recalled, which advocates for an enhanced cooperation with relevant stakeholders on the topic of GED, to foster a harmonized and coordinated approach in implementing a gender equal and inclusive Customs environment throughout the whole trade process.
The need for greater awareness on the different impacts, challenges and opportunities that trade policies can have on women and men was highlighted, as well as the benefits of mainstreaming gender into trade policies to enable women and other marginalized groups to benefit more from the opportunities that trade can bring. The unique challenges that women traders face entering the global business market were also stressed
WHO, WIPO, WTO update information note on integrated health, trade, IP response to COVID-19 (WTO)
The update contains developments up until 30 August 2021, including on the impact of COVID-19 on health systems and responses at the global level, policy challenges, meeting the demand for health technologies and medical services, international trade, intellectual property aspects, international initiatives to support research and development and equitable access, regulatory responses, transparency and mapping the way forward. The Trilateral Study is a result of the more than 10 years of trilateral cooperation between the secretariats of WHO, WIPO and the WTO. It seeks to strengthen the understanding of the ever-evolving interplay between the distinct policy domains of health, trade and intellectual property and their effect on innovation and access to health technologies, such as medicines, vaccines, diagnostics and medical devices.
Financing the 2030 Agenda: an SDG alignment framework for Public Development Banks (ODI)
To align with the multidimensional scope of the 2030 Agenda and SDGs, PDBs must incorporate the imperative of the transition to low-carbon, climate-resilient and equitable socio-economic models in all their financing decisions and project cycles. Up to now, many SDG alignment discussions have been limited to mapping exercises. Some actors perceive ‘SDG investments’ as equivalent to infrastructure investments, without questioning whether infrastructures are designed sustainably. The present study applies a much deeper comprehension of the 2030 Agenda, arguing that alignment with the Paris Agreement and SDGs must go hand in hand.
Virtue and a reward: Linking sustainable policies with sovereign debt (World Bank Blog)
the global pandemic is drawing renewed attention to the interlocking challenges of rising sovereign debt levels, climate change and environmental degradation. Addressing these problems will require unprecedented levels of investment, and policy makers are looking for ways to link the solutions.
The corporate sector has already started making these connections through sustainability-linked loans and bonds (SLBs), which tie the interest paid to investors to the issuer’s ability to meet key performance indicators (KPIs) on environmental or social policies. Unlike sustainable debt, such as green or blue bonds, an SLB has no restrictions on the use of proceeds. Instead, it is designed to promote sustainability while providing general-use liquidity to the issuer.
Now, several countries are considering issuing sovereign debt that follows this model. These bonds would allow nations to raise debt to deal with immediate COVID-related costs and general-purpose budget finance needs while signaling commitments to medium-term sustainable development goals that contribute to sustainable development and reduce potential financial risks.
The debt could be linked to policy, program or project objectives. In addition, it would avoid costly budget tagging and project identification because the proceeds would be used for general-purpose financing and would provide capital incentives for governments prepared to commit to ambitious targets.
Scaling up green fuels in the shipping industry: Global Maritime Forum expert | United Nations (United Nations)
What are some of the sustainable transport solutions in the maritime sector, and what can ordinary citizens do to contribute? Johannah Christiansen, CEO of the Global Maritime Forum, joined our virtual studio to discuss sustainable shipping in connection with the recent Second United Nations Global Sustainable Transport Conference. Ms. Christiansen highlighted the importance of green fuels and their potential for global application. Unfortunately, unlike the personal vehicle and other transport sectors, direct electrification of the maritime transport industry is still limited. Electrification is suited for short sea shipping, but for longer distances, green fuels are the solution. A new set of green fuels, made primarily with renewable energy, needs to be applied at scale in the shipping sector, she said.
Comprehensive assessment on marine litter and plastic pollution confirms need for urgent global action (UN Environment)
A drastic reduction in unnecessary, avoidable and problematic plastic is crucial to addressing the global pollution crisis, according to a comprehensive assessment released today by the UN Environment Programme (UNEP). An accelerated transition from fossil fuels to renewable energies, the removal of subsidies and a shift towards circular approaches will help reduce plastic waste at the needed scale. From Pollution to Solution: a global assessment of marine litter and plastic pollution shows that there is a growing threat in all ecosystems from source to sea. It also shows that while we have the know-how, we need the political will and urgent action by government to tackle the mounting crisis. The report will inform discussions at the UN Environment Assembly (UNEA 5.2) in 2022, where countries will come together to decide a way forward for global cooperation. Plastic pollution leakage into aquatic ecosystems has grown sharply in recent years and is projected to more than double by 2030, with dire consequences for human health, the global economy, biodiversity and the climate.
At their annual meeting with United Nations Secretary-General António Guterres today, the Global Investors for Sustainable Development (GISD) Alliance issued a joint statement outlining concrete actions for the future. Recognized for trailblazing work in sustainable development finance, the group is working with the UN to develop guidelines and products that align the existing finance and investment ecosystem with the Sustainable Development Goals (SDGs). “As private sector leaders, you have a great responsibility”, Guterres said. “Our goals are clear: Build a sustainable, net zero, resilient, and equitable world; better align investment with sustainable development; and act on our commitments – with credible timelines, targets, and plans. I count on the members of the GISD Alliance to catalyze greater investment for developing countries and make net zero and sustainability the core of everyone’s policies and business models.”
GISD also has sprung into action to address crises, including in 2020 by developing a COVID Bond Call to Action, which prompted companies and governments to use innovative social bonds to respond to the pandemic, contributing to a sustainable economic recovery.
How to build more sustainable, healthier, more equitable food systems (WEF)
At the World Economic Forum, our mission is to improve the state of the world through public-private cooperation. We believe in the transformative power of innovation and entrepreneurship. And we believe that only systems change can solve some of the most wicked challenges we are facing today. Those include the climate crisis, the social and economic crises many societies are facing, and of course, the COVID crisis and its fallout. The last year has been a pivotal one in many areas. But one area that concerns all of us gathered here today, is that food re-emerged at the centre of the global agenda. That comeback was marked first of all by positive signs.
But there were also more worrying reasons for food to return to the global agenda. In many part of the world, the COVID-19 pandemic could still go from a health crisis, to an economic crisis, to a food crisis. In some of the most vulnerable regions, this threat is exacerbated by existing and emerging conflict, and the impacts of climate change.
So, as we get back on our feet after the COVID crisis, we need to rebuild in a way that is healthier, more sustainable, more equitable and fairer for all.
Why climate change and cyber risk will shape the next decade (WEF)
Climate change has overtaken pandemics as the biggest worry for risk experts. At the same time, cyber risks are becoming more serious. These are the key takeaways from the newly published 2021 AXA Future Risk Report, which starkly illustrates the need for governments and corporations to work more closely together to reinforce societal and economic resilience. Similarly, the World Economic Forum in its 2021 Global Risk Report, finds that with the world more attuned to risk, lessons can be drawn to strengthen response and resilience.
Climate change returned to the top of the experts’ risk ranking in the 2021 survey, having been displaced by pandemic risk in 2020. We asked experts to rank their top five risks over a five- to ten-year timescale, and it came as no surprise that climate risks are back on top after a year of heatwaves, wildfires, floods, and freezes.
ICC brings the world to COP26 with virtual climate forum - ICC - International Chamber of Commerce (ICC)
The Make Climate Action Everyone’s Business Forum hosted by ICC from 1 –13 November 2021 will bring together more than 10,000 public and private sector participants from over 120 countries to align their climate ambitions and actions for the next decade.
The forum will also help catalyse coherent dialogue on critical climate, energy and environment related issues and the necessary regulatory frameworks and incentives needed to enable rapid decarbonisation of the global economy – particularly to lower the barriers to action for small- and medium-sized enterprises. Sage Chief Executive Steve Hare said: ”For global climate commitments to be met we must simplify the journey to net zero for small- and mid-sized businesses, who represent over 99% of all businesses in many countries. Gathering virtually on the margins of COP26 is a great way to ensure that SMBs stay front of mind as we collectively seek to accelerate climate action.”
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Ebrahim Patel calls for the continuous sharpening of the country’s competition policy (IOL)
Minister of Trade, Industry and Competition Ebrahim Patel on Thursday reiterated the importance of continuous sharpening of South Africa’s competition policy to respond to changing economic dynamics. Patel said that as a result, the country’s competition policy was under constant review as the markets were rapidly changing, with new industries created and new entrants to the market. In May, the department published a competition policy statement spelling out how competition should enable job creation and industrialisation in response for greater clarity by business. Patel said the competition policy statement makes the point that South Africa’s competition regime blends traditional competition concerns with developmental outcomes procreated to the national context. “Our policy aims to address high levels of economic concentration and to provide effective competition that supports industrialisation, that builds dynamic firms, that protects and creates jobs, and promotes economic inclusion and transformation,” Patel said.
Fix these issues to make business in South Africa better (BusinessTech)
Improving South Africa’s trade barrier score will require correct policy choices and avoiding protectionism, says the Free Market Foundation. The group referred to the Property Rights Alliance’s latest Trade Barrier Index (TBI), published this week, which ranks South Africa 44th internationally based on the number of trade barriers it has in place. The ranking identifies the most direct and indirect trade barriers imposed by 90 countries affecting 84% of the world’s people and 95% of global GDP. The use of trade barriers reflects how ‘free’ a market is, with a high use pointing to a more closed marketplace. This includes things like high tariffs and other regulatory restrictions that stifle competition.
Agri SA urges urgent action to keep input costs under control (Engineering News)
Industry organisation Agri SA has expressed concern about rising input costs for the agricultural sector, echoing concerns raised by the Agricultural Business Chamber (Agbiz) earlier this week. Agri SA says the cost of direct materials, labour and other overheads are particularly worrying, while Agbiz mentioned how fuel costs are gnawing at agribusiness’ profitability.
South Africa seeks over $27 billion for shift from coal (CGTN Africa)
South Africa is seeking more than 400 billion rand (27.6 billion U.S. dollars) worth of electricity infrastructure as part of its plans to move away from heavily polluting coal, a senior presidency official said on Thursday. Through a funding facility backed by rich nations and development finance institutions, South Africa hopes to build more than 180 billion rand (12.4 billion U.S. dollars) of cleaner power generation, 120 billion rand of transmission equipment, as well as substations, transformers and distribution technology. More than 80% of the country’s electricity is currently generated by burning coal, making it the world’s 12th biggest carbon emitter. But last month the government adopted a more ambitious emissions reduction target ahead of the United Nations COP26 climate summit in November. “South Africa’s message: We are prepared to make a substantial carbon reduction, but this must be financed by developed countries on concessional terms,” presidency official Rudi Dicks said in a presentation.
Association supports resilient industry through master plan (Engineering News)
Despite the impact of Covid-19 and a weak economy, the local stainless steel sector has shown its resilience, as the South African Stainless Steel Development Association (Sassda) continues to support industry through initiatives such as the Steel Master Plan. “When the Steel Master Plan was first released last year, the stainless steel subsector received recognition for its work and the potential it offers the steel industry. Sassda’s role in the plan is aligned with its mandate, which is to promote the growth of the local conversion of stainless steel to the benefit of our members, industry and the country,” states Sassda acting executive director Michel Basson. Since October last year, Sassda has been consulting regularly with the relevant government entities, including the Department of Trade, Industry and Competition (DTIC).
Minerals Council says collaboration is key to unlocking growth-supporting infrastructure (Engineering News)
There have been positive developments since the introduction of the Economic Reconstruction and Recovery Plan in October last year, and while implementation has been delayed, continued engagement between Minerals Council South Africa and government, as well as the current commodities price environment, has resulted in cautious optimism for the mining industry, says Minerals Council chief economist Henk Langenhoven. “Mining is doing well at the moment,” he comments. “There’s a very good feeling that’s developed between the companies and their employees, because of how the companies kept paying salaries and tried to keep miners safe during the height of the pandemic.”
EU carbon border tax won’t squeeze existing SA exports just yet (Fin24)
South Africa is one of the most carbon-intensive economies in the world – and the most among G20 countries. South African exporters, including small businesses, will have to make adjustments to comply with new legislation from the EU as the continent aims to achieve carbon neutrality by 2050.
How South Africa plans to secure backing for its ‘Just Transition Financing Facility’ at COP26 (Engineering News)
South Africa aims to meet with other governments and multilateral finance institutions on the sidelines of the upcoming COP26 gathering to progress talks on raising concessional funding, in phases, for a Cabinet-endorsed ‘Just Transition Financing Facility’ to fund green projects in the electricity, automotive and hydrogen sectors. As part of the first phase, South Africa is proposing a multitranche, multiyear facility, funded by a multilender syndicate, to fund decarbonisation and green projects.
South Africa keen to increase trade to $2b (The Express Tribune)
South Africa considers Pakistan as an important country for trade cooperation and is keen to enhance bilateral trade by tapping its true potential, said South Africa High Commissioner Methuthuzeli Madikiza. Visiting the Rawalpindi Chamber of Commerce and Industry (RCCI) on Thursday, he emphasised the need for strengthening business linkages between private sectors and chambers of commerce of the two sides. He highlighted that the current bilateral trade between the two countries stood below $1 billion, which could be increased to $2 billion in the next few years. He was of the view that joint ventures could be established in different sectors including mining, construction, tourism, agriculture, pharmaceutical and services. South Africa’s High Commission would facilitate the business community of Pakistan in forging linkages with their counterparts to promote collaboration in areas of mutual interest, he said.
Big potential for Namibia’s auto industry (Namibian)
NAMIBIA’S automotive industry is still developing but the country’s geographical location makes it an attractive destination for vehicle manufacturers. These are the research findings presented by Labour Resource and Research Institute Namibia executive director Michael Akuupa at a virtual presentation on Wednesday. The presentation also marked the launch of the report ‘New Investment in the Automotive Sector in Sub-Saharan Africa’, where labour educator Herbert Jauch was the moderator. “The Namibia automotive industry is still underdeveloped with active market players only in retail and aftermarket services such as panel beating and motor repair services,” said Akuupa. He added that the set-up of the industry allows for informal businesses providing motor mechanic services, although there are no records detailing how many informal automotive businesses are in operation in the country.
Transport charges fall 20 percent on low activity at port (Business Daily)
Cargo transport charges have dropped by up to 20 percent on the low activity at the Mombasa Port due to a snub by importers put off by high international freight cost, transporters said. The Kenya Transporters Association (KTA) said cargo trucking charges from Mombasa to Kampala have, for instance, dropped to an average of Sh222,020 ($2,000) from Sh277,525 ($2,500) on low demand-- leaving many trucks idle. “For the last couple of months we have been experiencing a decline in cargo at the port of Mombasa. This has seen our charges decline to a low of $2,000 (Sh222,020) at the moment,” the lobby’s chief executive officer, Dennis Ombok said adding that the situation had triggered price wars among truckers.
Freight rates, especially from China to East Africa have gone up from the initial $4,000 per 40ft container to over $6,000 at the moment.
Ms Vanessa Evans, the managing director of Rongai Transport said the low cargo load had significantly hit their businesses as most of their trucks had been parked. “We are no longer making profits at the moment. The shortage of cargo at Mombasa port means that some of our trucks have to stay idle,” she said.
Awakening Of Africa: Kenya’s Ecommerce On The Rise (Africa.com)
In a recent IT News Africa article, Visa reported that the top market contributors for ecommerce in Sub-Saharan Africa (SSA) over the last three years were South Africa, Nigeria and Kenya with Ghana also showing growth having replaced Kenya in the top three contributors in 2020. “The three leading markets in SSA are starting to mature, providing the region with an established foundation and when twinned with the growing penetration of ecommerce, offers players in the payment space an opportunity to capitalize while helping accelerate the expansion of ecommerce in the region,” said Lineshree Moodley, Head of Visa Consulting and Analytics, SSA.
As many as 264 ecommerce start-ups were operating across Africa in 2017 and while ecommerce is on the rise, familiar challenges exist around ICT, logistical infrastructure, customer reluctance due to cyber-crime, low Internet penetration and problems with digital literacy. Furthermore, ecommerce legislation in Africa has failed to meet digital advances as currently only 33 of 54 nations have regulations for electronic transactions and only 25 have online consumer protection laws. That said, Kenya’s ecommerce ecosystem is seen by the experts as a region where its own model will be developed based on the country’s unique characteristics and as market demand dictates.
Fresh China Covid-19 curbs spark trade disruption fears (Business Daily)
A fresh Covid-19 outbreak in China is curbing activity at some of the country’s biggest airports, stoking fears among Kenyan traders that further disruption to international flights risks upending trade between the two countries and pushing up the price of Chinese exports. Authorities in China have this week canceled hundreds of flights, closed schools, and ramped up mass testing to try and stamp out a new Covid-19 outbreak linked to a group of tourists. Beijing has maintained a relentless zero-Covid approach with strict border closures and targeted lockdowns, even as other countries including Kenya tentatively try to ease restrictions. Disruptions in Chinese ports have negatively impacted traders in Kenya this year, with consumers bearing the brunt of costlier goods. The situation has forced many traders in the global supply chain to source goods from alternative costlier markets.
Just two months ago congestion at Chinese ports due to a two-week partial closure of the world’s third-largest container port triggered anxiety among Kenyan traders over fresh increases in the cost of goods imported into Kenya. The impact of the closure of the gateway worsened logjams in the global supply chains amid a resurgence of consumer spending and a shortage of container vessels.
Digital service tax guarantee more revenues – Legislator (Dailynews)
A LAWMAKER has allayed fears over Digital Service Tax, saying it will guarantee the government more revenues. The Member of Parliament for Special Seats (CCM) through Tanzania Mainland Civil Society Organizations (NGOs), Neema Lugangira said digital economy had high prospects of presenting the government a new tax base.
“This is where most governments get tax from for the sector to thrive,” offered the legislator. According to the policymaker, renowned multinational technology company specializing in e-commerce, retail, Internet, and technology such as Amazon, Uber, Alibaba and Google had already joined the services. “We are talking about the existing revenues that are generated by the multinationals, thus the country stands to reap big from such an taxes,” she insisted.
Businesses should venture beyond borders boldly (The New Times)
The value of Rwanda’s exports to the African continent is expected to triple in 10 years, up from Rwf1.6 billion, thanks in part to the African Continental Free Trade Area (AfCFTA). One of the world’s largest free trade zones, AfCFTA started the trading phase in January, effectively setting the stage for the continent to benefit from its $4 trillion worth of market.
For decades, African economies remained fragmented with small, largely unsustainable and undeveloped markets, a situation that largely benefited former colonisers and other industrialised countries. Yet, AfCFTA might largely remain on paper if the private sector does not fully embrace it and start taking advantage of it. This is in part due to structural barriers to cross-border trade. However, African political and business leaders have so far demonstrated readiness to address these challenges and create the necessary business friendly environments with a view to facilitate traders and investors seeking to exploit AfCFTA. One of the latest initiatives in that regard is the launch this week in East Africa of MANSA, a digital platform that provides a single primary source of data that allows for requisite due diligence involving financial institutions, businesses, among others.
Take advantage of AfCFTA to access foreign markets, boost your businesses – NEPC tells SMEs (Vanguard)
The Executive Director/Chief Executive Officer of the Nigerian Export Promotion Council, NEPC, Chief Olusegun Awolowo has urged Small and Medium-sized Enterprises, SMEs, to take advantage of the African Continental Free Trade Area, AfCFTA, to access foreign markets and boost their businesses. He said for the SMEs to fully benefit from the AfCFTA it was also important for them to have a better understanding of the market entry criteria in the regional markets if Nigeria will reap the benefits of participating in it.
Represented by the Trade Advisor/Head NEPC Makurdi Export Assistance Office, Mr. Ben Anani, the Executive Director said, “over the last decade, key market access conditions like tariffs, non-tariff barriers and utilization of preferences have increasingly been affected by bilateral trade agreements in most developing nations and Nigeria is no exemption. “However, with the trade opportunities offered by AfCFTA, it is extremely important for SMEs to have a better understanding of market entry criteria in the regional markets if Nigeria must reap the benefits of our participation in the agreement.”
Africa
Finding value in connections (ICLG)
Hogan Lovells’ annual Africa Forum emphasised the importance of connection and the scope for greater trade within Africa, as the continent emerges from the pandemic. Increased connectivity and industrialisation are the key to improving trade within Africa, as the African Continental Trade Area (AfCFTA) finds its feet, according to speakers at the annual Africa Forum, hosted yesterday (20 October) in London and online by international law firm Hogan Lovells. Andrew Skipper, head of the firm’s Africa practice and co-chair of the United Kingdom’s African Investors Group, introduced the forum calling for investors to “have a broad and not a narrow approach, a respectful and not dictatorial approach” towards Africa.
Recovery from the pandemic and the increased digitalisation of the continent were also on the agenda this year, all of which brought Skipper back to the event’s key theme: “The importance of human connectivity has never been greater,” but warned that “nationalism or at least individualism, has never been greater”, albeit that Africa is trying to buck that trend with the launch of AfCFTA.
Innovation fundamental for business, Adrian Gore emphasises (Engineering News)
Innovation is fundamental for a business and needs to be a continuous process, Discovery Group CEO and founder Adrian Gore has said. Speaking on day one of the Africa Strategy Conference, on October 21, he noted that he has observed six key learnings from innovation implemented at Discovery.
Africa needs $285 billion to boost access to finance (The New Times)
Africa will need at least $285 billion by 2025 in order to increase the ability of its population to access finance and deal with the effects of the Covid-19 pandemic. Aissa Touré Sarr, Country Manager of African Development Bank (AfDB) in Rwanda, who was speaking at the microfinance summit, said that it could cost nearly twice as much to get countries get back to pre-pandemic growth trajectories.
“Our population needs to access financial services in a simple and more efficient manner. Digital finance alone could benefit billions of people by spurring inclusive growth that adds $3.7 trillion to the GDP of emerging economies within a decade,” she said.
African entrepreneurs get support (ICLG)
The International Chamber of Commerce and the United Nations Economic Commission for Africa have launched a centre dedicated to supporting African entrepreneurs. The International Chamber of Commerce (ICC) and United Nations Economic Commission for Africa (ECA)’s ICC-ECA Centre of Entrepreneurship is designed to provide support to Africa’s next generation of businesspeople. Launched earlier this month, the centre’s initial hubs have been announced for Ghana, Kenya, Morocco and Nigeria, with the purpose of driving innovation and enhancing the business environment for African small- and medium-sized enterprises (SMEs). It will form strategic partnerships with stakeholders including companies, chambers of commerce, academic institutions, and intergovernmental and governmental agencies, to help local entrepreneurs network easily with global markets and improve regulatory conditions for SMEs.
Sub-Saharan Africa’s debt problem: Mapping the pandemic’s effect and the way forward (Brookings)
The COVID-19 pandemic has, thus far, spared Africa from the high number of cases and deaths seen in other regions in the world (Figure 1). As of April 2021, sub-Saharan Africa accounted for just 3 percent of the world’s cases and 4 percent of its deaths. Some experts attribute the relatively low case counts in sub-Saharan Africa to the region’s extremely young population or, importantly, the swift and preemptive lockdowns that many countries implemented in March 2020. While these lockdowns have likely saved lives, they have also left significant scars on the fiscal position of sub-Saharan Africa and the market conditions it faces. Dwindling revenues following the fall in global trade met a wave of unemployment among a population that lacks widespread access to safety nets and health infrastructure.
Debt was an increasing problem across all income groups of African countries prior to COVID-19, and the pandemic has only exacerbated the problem. In fact, African countries had been borrowing heavily in the global financial markets in recent years—a trend that has created both new opportunities and new challenges. Rising debt levels have corresponded with rising debt service cost, but countries have not necessarily improved their ability to finance such obligations. Indeed, failure to meet debt service obligations will have devastating impacts, including downgrading of credit ratings (and, hence, future higher costs), heightened pressure on foreign exchange reserves and domestic currency depreciation, and the real possibility of being rationed out of the market—and negative reputational consequences.
sub-Saharan Africa experienced a 4.5 percent increase in “pandemic debt”—the debt taken on above and beyond projections due to the COVID-19 crisis. HIPC countries in particular saw large increases in pandemic debt, with levels 8.5 percent higher than projected. Non-HIPC countries took on mostly planned debt and borrowed from both private and official (that is, bilateral or multilateral) credit markets alike. HIPC countries, on the other hand, were largely shut out of private credit markets and instead relied on official credit to fund increases in (largely unplanned) debt.
Go Forth and Shape Africa’s Destiny – President Akufo-Addo Challenges Africa’s Youth (The Presidency of Ghana)
The President of the Republic, Nana Addo Dankwa Akufo-Addo, has challenged Africa’s youth to take mental, physical and economic lead roles in positioning Africa as the giant of the future. In a speech read on his behalf by the Vice President, Dr Mahamudu Bawumia, at the YouthConnekt Africa Summit taking place in Accra, President Akufo-Addo maintained that the African could be as successful as any other, and urged the youth, who make up a very large proportion of Africa’s population, to take their rightful place in shaping the continent’s destiny. “There is an abundance of dynamic, entrepreneurial talent on our continent struggling to express itself and take advantage of such conditions. We have to encourage this expression with full force, and ensure that we can stand on our own feet, and make it impossible for the systematic looting and plundering of our human and material resources, that have characterized much of our modern history, to continue. This is the significance of the concept of Ghana Beyond Aid, indeed, of Africa Beyond Aid.”
COMESA, Tanzania Signs €2.7 million sub-delegation Agreement to upgrade Tunduma Border Post (COMESA)
The COMESA Secretariat and the Government of the United Republic of Tanzania have jointly signed an agreement that sub-delegates the implementation of coordinated border management activities and construction of a border market at the Tunduma Tanzania-Zambia Border Post. The European Union allocated a total of EUR 2.7 million to this initiative under the COMESA Small-Scale Cross Border Trade Initiative (SSCBTI) and Trade Facilitation Programme (TFP), respectively. Upgrading the Tunduma border post feeds into the framework of the COMESA-EAC-SADC Tripartite Free Trade Agreement, whose main objective is the creation of a single economic area.
The progressive removal of trade barriers will facilitate trade and increase formal small scale trade flows between the two countries. Through the sub-delegation agreement, the United Republic of Tanzania will also receive support in the development of improved and harmonized regulatory frameworks and procedures at its border crossing with Zambia. In concrete terms, activities will focus on upgrading priority cross-border infrastructure and the procurement of equipment, which is needed to improve cross-border trade and transport facilitation at the Tunduma border post. The project will also support capacity building of border agencies and national stakeholders on coordinated border management, customs valuation, harmonized system classification, setting up and management of Joint Border Committees, risk management and “One Stop Border Post” procedures.
ECA and CREG co-organize the 2nd Edition of the NTA-Africa Conference (UNECA)
The United Nations Economic Commission for Africa (ECA), through its sub-regional office for West Africa, co-organizes with the Regional Centre of Excellence in Generational Economics (CREG) the second edition of the NTA (National Transfer Accounts) - AFRICA Conference with the collaboration of the United Nations Population Fund (UNFPA), as well as partner universities and development partners. Scheduled for October 27 to 29 in Mbour, Senegal, the central theme of this conference is: “Generational economy in the context of the COVID-19 pandemic: Implications for the achievements of the SDGs in Africa”. The choice of this theme is motivated by the desire to support the actors and development partners of Africa through research on the central place of population issues as a means of reversing the unfavourable trends of economic indicators. The challenge is to contribute, in the context of the global health crisis, to the decade of bold action to achieving the goals by 2030 in Africa.
China-Africa trade bouncing back from Covid-19 impact, figures suggest (South China Morning Post)
China’s trade with Africa could return to pre-pandemic levels as economies heal from its devastating impact if recent momentum is maintained. In the first eight months of the year, total two-way trade between China and African countries grew by 40 per cent year on year to US$162.7 billion, according to Chinese customs data. In 2020, the figure for 12 months dropped 11 per cent year on year to US$187 billion, after growing 2 per cent to US$208.7 billion in 2019, before the coronavirus emerged.
Roundup: Upcoming FOCAC meeting imperative in boosting China-Africa ties – experts (China.org)
Experts and policymakers at a China-Africa cooperation-themed high-level seminar said Wednesday that the upcoming Forum on China-Africa Cooperation (FOCAC) meeting will offer opportunities to boost China-Africa ties across a range of sectors.
The high-level seminar, held virtually with the theme of “Look Into the Future: The New Era of China-Africa Cooperation,” underscored the need to tap into the potential of the upcoming FOCAC meeting, slated to be held in Senegal later this year, to further boost China-Africa relations. Liu Yuxi, head of the Chinese Mission to the African Union (AU), said the eighth Ministerial Conference of FOCAC will discuss the new developments, imperatives and opportunities in upgrading China-Africa cooperation.
According to Liu, China-Africa anti-pandemic cooperation has proved successful, in which China has urgently provided various kinds of assistance including materials, vaccines and expert teams to 53 African countries and the AU, in response to African needs. “China-Africa economic and trade cooperation and our solidarity provide strong support to economic reopening and recovery in Africa,” he said.
Minister Ganoo shares Mauritius’ concerns on AGOA during Ministerial Forum (Government of Mauritius)
The first session of the Virtual African Growth and Opportunity Act (AGOA) Ministerial meeting took place online on 20 and 21 October 2021 under the theme ‘Building Back a Better US - Africa Trade and Investment Relationship’. The annual Ministerial Meet aims at strengthening trade and investment between the US and Africa.
In his remarks to Ambassador Tai, Minister Ganoo asked what were the possibilities or alternatives that the US Administration could envisage for these countries which might face sudden trade disruption as a result of being graduated out of AGOA on the basis of per capita GNI. According to Mr Ganoo, the World Bank GNI criterion should not be used to determine the competitiveness of a country, the more so that the countries that might reach this threshold are small vulnerable nations like Mauritius.
The trade policy outlook of the US towards Sub-Saharan Africa, in light of the remaining years of AGOA, and the future orientation of the US- African partnership were also mentioned by the Minister.
USAID Delivers on Prosper Africa Goals with Africa Trade and Investment Program (USAID)
Administrator Samantha Power announced the launch of USAID’s new Africa Trade and Investment program at the African Growth and Opportunity Act (AGOA) Ministerial. The continent-wide program is USAID’s flagship effort under the Prosper Africa initiative and will expand and accelerate two-way trade and investment between African nations and the United States. The program helps to fulfill the promise of the global Build Back Better World Partnership with the G7 and earlier commitments to increase two-way trade and investment. Since June 2019, USAID has supported African and U.S. businesses and investors in closing more than $2.8 billion in new exports and investments, and built a deal pipeline of more than $10 billion. The new program is expected to generate thousands of African and American jobs and deliver billions in exports and investments by 2026.
More African firms cement Dubai ties as trade soars to $50bn despite pandemic (Arabian Business)
The number of African companies registered with Dubai Chamber has increased by 15.5 percent since 2019 to reach 24,800 today, according to president and CEO Hamad Buamim. “Judging by economic indicators, it’s safe to say that our efforts in Africa are bearing fruit. Dubai’s non-oil trade with Africa reached $50 billion in 2020 despite the pandemic challenges, marking the highest level in the last decade,” he told the 6th Global Business Forum Africa in Dubai. Sultan bin Sulayem tells Global Business Forum Africa in Dubai that partnerships can create benefits for UAE and African businesses
Buamim added: “We believe that Dubai holds the key to unlocking Africa’s economic potential, as one of the world’s fastest growing city economies that can offer valuable expertise in key sectors such as logistics, infrastructure, retail, tourism and finance, in addition to the right level of investment needed to support African countries scaling up their economies.”
African Union commissioner sees ‘huge potential’ for trade with Turkey (Yeni Şafak)
The African Union’s commissioner for economic development, trade, industry, and mining has praised the ‘huge potential’ for developing relations with Turkey and Africa. “All we need now is to expand the relations,” Albert Muchanga said in an exclusive interview with Anadolu Agency on the sidelines of the 3rd Turkey-Africa Economic and Business Forum in Istanbul. “With business-to-business (B2B) meetings, businesspeople will explore ways of gathering to expand the trade, he added. We live in an interdependent world, (with) no countries and islands on their own. So is very, very important that Africa develops relationships with all countries of the world,” he said when asked about the increasing interest in the African continent. Likewise, he said, all countries are very welcome to develop ties with Africa.
Turkey-Africa Economic and Business Forum releases joint declaration (Yeni Şafak)
International
Vaccine waiver battle rumbles into EU–African Union summit (EURACTIV)
EU and African officials are still at loggerheads over whether to waive intellectual property protection for COVID vaccines ahead of a meeting between EU and African Union foreign ministers meet in Rwanda next week. Officials say they have been in “intense talks” on how to increase the availability of vaccines to developing countries. The EU and the United States and a group of developing countries, led by India and South Africa, have spent the past year lobbying for intellectual property (IP) rights on COVID vaccines to be waived. Lifting patent protection, even for a limited period of time, would allow countries to produce their own versions of the vaccine. However, civil society organisations say the EU’s latest proposal falls far short of allowing the conditions for vaccine production.
India questions legal status of ongoing plurilateral negotiations at WTO (Mint)
India, Namibia, and South Africa have questioned the legality of the so-called plurilateral agreements on e-commerce, domestic services regulations, and investment facilitation by member countries of the World Trade Organization (WTO). They said such negotiations cannot be termed plurilateral as they do not have the sanction of WTO and must not lead to modifications to its rule book. Joint statement initiatives (JSIs) are broadly defined as a plurilateral negotiating tool initiated by a group of WTO members on certain issues without adhering to the rules on consensus decision-making of the multilateral body. Members negotiating such initiatives aim to conclude the process before the WTO 12th Ministerial Conference (MC12) in late November at Geneva. India and other developing nations are concerned over the introduction of new trade rules to the WTO framework surreptitiously through the JSI agreements despite not having consent of all member nations.
“Going back to plurilateral agreements would, therefore, be a step in the wrong direction and would be contrary to the determination and resolve as enshrined in the Preamble of the Marrakesh Agreement,” the three countries had argued earlier this month.
U.S. urges all WTO members to support intellectual property waiver for COVID-19 vaccines (Thomson Reuters Foundation)
The White House on Thursday called on all World Trade Organization members to support an intellectual property waiver for COVID-19 vaccines. “We ... need every WTO member to step up as well and support an intellectual property waiver, and every company must act ambitiously and urgently to expand manufacturing now,” White House spokesperson Karine Jean-Pierre told reporters. A year after South Africa and India introduced a proposal to temporarily waive intellectual property rights on COVID-19 vaccines and therapies at the WTO, negotiations have failed to make any progress. More than 100 countries backing the waiver say it will help save lives by allowing developing countries to produce COVID-19 vaccines, but the European Union and several countries, including Switzerland, remain opposed.
UK calls on G7 to help build stronger and greener supply chains (GOV.UK)
The International Trade Secretary will today (Friday 22 October) call on the world’s leading democracies to work together to build global resilience in critical supply chains as she welcomes the G7 Trade Ministers to London. Anne-Marie Trevelyan will lead talks at London’s Mansion House, the first time G7 Trade ministers have gathered in person for this year’s Trade Track. Covid-19 has sent shockwaves through global production and transport, shutting the world’s third-busiest container port in China, leaving shipping containers stranded in Africa and South America, and causing long queues of goods ships unable to dock in the US. Shipping costs have increased fivefold since the start of the year, while air cargo has seen prices rise and capacity reduce. The Secretary of State will argue against protectionism and advocate measures such as better monitoring and cooperation to quickly identify and address bottlenecks where they arise.
International Trade Secretary Anne-Marie Trevelyan said: Global challenges require global solutions. We have seen from the COVID-19 pandemic how fragile our global supply chains can be. The UK will work with our G7 and trade partners to build stronger, greener supply chains and a more resilient economy. We will also send a clear message that digital trade should be open and free, with proper safeguards to protect workers, consumers and businesses, so it can raise living standards and support jobs as we build back better from the pandemic.
Commodity Markets Outlook October 2021 (World Bank)
Energy prices soared in the third quarter of 2021 and are expected to remain elevated in 2022, adding to global inflationary pressures and potentially shifting economic growth to energy-exporting countries from energy-importing ones. The World Bank’s latest Commodity Markets Outlook forecasts that energy prices—expected to average more than 80 percent higher in 2021 compared to last year—will remain at high levels in 2022 but will start to decline in the second half of the year as supply constraints ease. Non-energy prices, including agriculture and metals, are projected to decrease in 2022, following strong gains this year. “The surge in energy prices poses significant near-term risks to global inflation and, if sustained, could also weigh on growth in energy-importing countries,” said Ayhan Kose, Chief Economist and Director of the World Bank’s Prospects Group, which produces the Outlook report. “The sharp rebound in commodity prices is turning out to be more pronounced than previously projected. Recent volatility in prices may complicate policy choices as countries recover from last year’s global recession.”
Renewable energy jobs grew globally in 2020 despite COVID crisis (Thomson Reuters Foundation)
The number of jobs in renewable energy worldwide increased in 2020, despite the huge economic disruptions caused by the COVID-19 pandemic, with the growing industry holding up better than fossil fuels, international agencies said on Thursday. In an annual report on clean energy employment, the International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO) said there were 12 million jobs in renewable energy and its supply chains last year, a third of them in solar power. That was a rise from 11.5 million jobs in 2019.
The COVID-19 crisis, together with the challenges of global warming, “reinforce the need for a just and inclusive transition toward a clean, reliable energy supply and sustainable, healthy, climate-friendly jobs”, IRENA Director-General Francesco La Camera added.
U.S. delays global plan to deliver $100B in climate finance (E&E News)
The United States is holding up a process for determining how the world’s richest nations will deliver billions of dollars to poorer countries for combating global warming, according to sources close to the discussions. One major sticking point is whether the U.S. and other nations would have to make up shortfalls if they fail to provide $100 billion a year to developing countries. The U.S. has raised concerns about a proposal by other rich nations to commit to $500 billion over the next five years.
Funding for climate projects in vulnerable countries will be a key issue in global climate talks next month. The U.S. and other rich nations promised in 2009 to give developing countries $100 billion a year starting in 2020, but that hasn’t happened.
They fell $20 billion short in 2019, according to a report from the Organization for Economic Co-operation and Development. It’s not clear how much funding was provided last year, but the goal was likely missed if trends that show climate finance decelerating hold up. The shortfall compounds each year the goal isn’t met.
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National
South Africa says Zimbabwe ‘killing’ Africa trade over Beitbridge truck delays (ZimLive)
South Africa has accused Zimbabwe of “killing business” over border delays for haulage trucks at Beitbridge. Zimborders Consortium was granted a US$300 million contract to build new terminal buildings for trucks, buses and light motor vehicles without going to tender. The company has decided to do the construction in phases, with the freight terminal the first to be completed.
Motsoaledi said Zimbabwe was making a “mockery” of African trade. Beitbridge is a gateway to other regional markets including Zambia, Malawi and the Democratic Republic of Congo. “The congestion is being caused by the continued construction on the Zimbabwean side. It looks like their construction has now reached a difficult point without them making any arrangements for parking space, so they don’t allow lots of trucks from South Africa on their side because they have got no parking space where they will process their trucks,” Motsoaledi told eNCA on Tuesday.
EU in SA project provides support for local Green SMMEs to understand opportunities in the EU Green Deal (GreenCape)
Following on from a previous EU funded project that supported green SMME resilience during the early stages of the COVID-19 pandemic, GreenCape partnered with Wesgro, TIPS, Tralac, Trade Advisory and the International Cleantech Network to pivot support to local green SMME so that they could continue to build international relationships to secure trade opportunities, despite the travel restrictions, supply chain disruptions and a hard lockdown. Insights from initial resilience research engagement with a database of green SMMEs led to the development of a set of designed interventions, including a deep dive into the opportunities presented by the European Green Deal for local green SMMEs who have been able to pivot their business models to “trade without travel.”
Eswatini new deal beacons bright energy future for SADC (ESI-Africa)
Following two and a half years of negotiations, the Government of Eswatini has signed a contract with renewable power producer Frazium Energy (FZM) for a 100MW solar park. The contract allows FZM to operate the large scale solar-storage IPP project in Eswatini for 40 years. In return, FZM will invest $116.5 million over the next five years for the first phase of the project.
The project, touted as the largest one of its kind in Africa, envisages the installation of the solar farm at the Edwaleni Hydropower Plant (HPP) in Matsapha, central Eswatini.
Frazium Energy director Robert Frazer said: “We are so grateful to the government of Eswatini for their support, confidence, and belief in our vision for this project, and we are so excited for the role we can play in Eswatini’s and Africa’s green energy future.” Frazer added. “Africa’s largest battery is coming, and it is coming to Eswatini. The future is not just bright; it is solar-powered.”
Expensive fuel widens trade deficit to Sh852bn (Business Daily)
Kenya’s goods trade deficit for the first eight months of the year widened by 35.31 percent, largely on increased expenditure on importation of fuel products and factory supplies, official data shows.The trade deficit – the gap between merchandise imports and exports – increased to Sh852.14 billion from Sh629.75 billion a year ago amid a recovery in global oil prices and persistent disruptions in supply chains which have increased the cost of shipping materials.
Expenditure on imports bumped 27.4 percent year-on-year to Sh1.34 trillion in the review period, higher than the 15.64 percent growth in earnings from exports to Sh489.55 billion, according to provisional trade data published by the Kenya National Bureau of Statistics.
Kenyan traders protest over Uganda’s seizure of their fish (Daily Monitor)
Kenyan fish exporters at the weekend blocked the border point at Busia in protest after the Uganda Fisheries Protection Unit (FPU) seized five of their trucks carrying fish worth KShs50m (about Shs1.5b). The trucks were intercepted at Mpondwe border in Kasese District about two weeks ago, with the fish destined for the Democratic Republic of Congo. This prompted the traders to close the Busia border at the weekend, paralysing the flow of trucks between Uganda and Kenya. “We have closed this border to demand for the unconditional release of our trucks that were intercepted by the Ugandan military at the Mpondwe border post in Kasese,” Mr Hassan Omari, one of the fish exporters, said.
Cut cost of digital payments to achieve cashless economy – expert (Daily Monitor)
Government and other stakeholders, including digital payment companies and innovators must make the cost of digital transactions affordable if Uganda is to achieve a cashless economy. Speaking during the Women in Fintech Summit in Kampala at the weekend, Ms Damali Ssali, a trade expert, founder and author of the Ideation Corner, said it was important that the cost of digital transactions are made affordable to encourage creation of more innovations that will deliver Uganda to a cashless economy. This, and the cost of internet, she said, remain way beyond what many Ugandans, especially women in micro, small and medium enterprises can afford. ”This explains why only just about 10 per cent of money is exchanged digitally in Uganda,” she said. Uganda remains largely a cash economy with more than 80 per cent of transactions completed through cash.
Low demand, supply chain disruptions affect MSMEs (Daily Monitor)
Due to rapid disruptions, the business community is looking for innovative ways of doing things differently to remain relevant despite the devastating effects of the Covid-19 pandemic and its lockdowns. Signs of recovery have strengthened, underpinned by improved business and trading conditions as Covid-19 restrictions ease. Despite demand slightly picking up, Micro Small and Medium Enterprises (MSMEs) are still reeling from the negative effects of the pandemic.
The economy is in a state of moderate recovery. Although demand is picking up in certain sectors of the economy, the performance of the private sector, particularly, MSMEs is still reeling from the negative impacts of the Covid-19 pandemic. The government needs to keep implementing a range of fiscal and monetary policy measures to cushion the economy and Micro Small and Medium s Enterprises (MSMEs) from the shocks of the pandemic.
The Covid-19 pandemic has made rich countries look inwards. Therefore, countries that previously imported a lot of things are starting to look at domesticating their supply chains, as a coping mechanism. This new state of affairs will disadvantage poor countries like Uganda that sought to grow their economies through export promotion. Furthermore, those rich countries that previously extended development aid to poorer countries will be at a less favourable position to do so. This will affect the ability of poor countries to raise the revenue that they need to support their economies to recover. Businesses at this time, are still struggling with low demand from consumers, cash flow and liquidity challenges and supply chain disruptions, among others.
What economic slowdown in China means to Tanzania (The Citizen)
China could be very far from Tanzania. But, if the Asian country’s current low economic growth rate persists, it could have far-reaching ramifications for the East African nation - and also for Africa as a whole, analysts say. China’s economic growth slowed by more than expected in the third quarter, official data showed yesterday. China, which is the world’s second largest economy after the US, bounced back swiftly from the Covid-19 pandemic. However, recovery is losing steam, with gross domestic product expanding 4.9 percent on-year, according to figures from China’s National Bureau of Statistics (NBS). NBS spokesman Fu Linghui told reporters yesterday that “current international environment uncertainties were mounting and the domestic economic recovery was still unstable and uneven.” The economy grew only 0.2 percent from the previous three months, the weakest since a historic contraction in the first quarter last year.
ECOWAS Parliament to fund 2022 budget wholly from community levy with Nigeria paying about 50% (Vanguard)
The 2022 financial estimates of the Economic Community of West African States (ECOWAS) Parliament will be financed almost solely from community levy. The Federal Government of Nigeria last year said it has paid over 1,177 billion dollars to ECOWAS as its Community Levy contribution in the last 16 years. Nigeria’s payment represents 40.42 per cent of the total payment of 2,913,088,908 dollars payment made by all the 15 member states and is higher than payments made by 12 other countries put together except Ghana and Cote d’Ivoire. According to documents from a presentation by the ECOWAS Commission to Parliament at Plenary during its Virtual Second Extraordinary Session, Nigeria paid 853,310,564 UA (West Africa Unit of Account) for the period under review. The West African Unit of Account (WAUA) is the authorised currency used in ECOWAS.
The African Development Bank has signed a grant agreement for $500,000 with Y’ello Digital Financial Services (YDFS), a fintech subsidiary of MTN Nigeria, to be used for a study into economic, religious, and social factors hampering access to finance for women in northern Nigeria. The research, which includes a feasibility study, women-focused design and testing, will focus on both agents and customers to provide insights into women’s use of mobile money services, will be funded through the Africa Digital Financial Inclusion Facility (ADFI). Despite being the continent’s largest economy, 55% of rural Nigerians still lack access to financial services. The rate of mobile money adoption currently stands at 4%, with an agent ratio of 228.8 agents per 1,000 adults. Political instability and conservative cultural norms in parts of Northern Nigeria are thought to present barriers to women’s access to finance. Additionally, 80% of agents in the region are men.
Nigeria already exporting locally produced cars to Mali – NADDC (Blueprint Newspapers)
The Director-General of the National Automotive Design and Development Council (NADDC), Jelani Aliyu has confirmed that Innoson company, a car manufacturing company is already exporting made-in Nigeria vehicles to Mali. Jelani who confirmed this at the just concluded Commerce and Industry Correspondents Association of Nigeria (CICAN) Annual Conference in Abuja further added that the development is thereby adding value to Africa.He noted that the Council had gone a step further in leveraging on electric-powered vehicles noting that some car manufacturing companies have begun to produce gas-powered vehicles as part of measures to support the Federal Government’s National Gas Expansion Programme. A Communiqué was signed by CICAN Chairman, Frederick Idehai, with the theme, “The Role of Nigeria’s MSMEs, Export, Commodities, Trade and Investment in Stabilising the Post-Covid-19 Economy: Issues and Challenges,“ with the sub-themes as: “The Place of AfCFTA in Nigeria’s Economic Diversification Plan: Pros & Cons” and the “FG’s MSMEs Survival Fund: Successes, Lessons and Pitfalls,” at the end of the conference.
The communique recommended that the Federal and sub-national governments work to solve the challenges associated with the AfCFTA such as infrastructure dearth, intense competition from cheaper imports and weak regulation, it is pertinent that the private sector ramp up production, improve their packaging and expand distribution to beat the looming competition.
The African Development Bank held its second virtual business opportunities (BOS) for 2021 from 12-14 October, to provide an overview of its policies, operations, procurement rules and country activities. The event took place over three days to accommodate participants in different time zones, and included a special session on business opportunities in Angola at the request of the Bank’s Angola country office. The BOS offers companies, civil contractors, manufacturers, consultants, and suppliers from the Bank Group’s regional and non-regional members a one-stop-shop of information on how to provide goods and services to Bank-funded projects, how to partner with the Bank Group and on financing opportunities available for private sector projects.
Africa
Regional Economic Outlook Sub-Saharan Africa: One Planet, Two Worlds, Three Stories (IMF)
Sub-Saharan Africa’s economy is set to recover in 2021 – a marked improvement over the extraordinary contraction of 2020. This rebound is most welcome and primarily results from a favorable external environment, including a sharp improvement in trade and commodity prices. In addition, improved harvests have lifted agricultural production. Yet, the outlook remains highly uncertain as the recovery depends on the progress in the fight against COVID-19 and is vulnerable to disruptions in global activity and financial markets, the International Monetary Fund (IMF) said in its latest Regional Economic Outlook for Sub-Saharan Africa.
“As sub-Saharan Africa navigates through a persistent pandemic with repeated waves of infection, a return to normal will be far from easy,” stressed Abebe Aemro Selassie, Director of the IMF’s African Department. “In the absence of vaccines, lockdowns and other containment measures have been the only option for containing the virus.
“Furthermore, increasing debt vulnerabilities remain a source of concern, and many governments will have to undertake fiscal consolidation. Overall, public debt is predicted to decline slightly in 2021 to 56.6 percent of GDP but remains high compared to a pre-pandemic level of 50.4 percent of GDP. Half of sub-Saharan Africa’s low-income countries are either in or at high risk of debt distress. And more countries may find themselves under future pressure as debt-service payments account for an increasing share of government resources.
Against this backdrop, Mr. Selassie pointed to a number of policy priorities. “The difficult policy environment that authorities faced before the crisis has been made more demanding by the crisis. Policymakers face three key fiscal challenges: 1) to tackle the region’s pressing development spending needs; 2) to contain public debt; and finally, 3) to mobilize tax revenues in circumstances where additional measures are generally unpopular. Meeting these goals has never been easy and entails a difficult balancing act. For most countries, urgent policy priorities include spending prioritization, revenue mobilization, enhanced credibility, and an improved business climate.
Second Edition of the APSS opens with clarion call to accelerate AfCFTA implementation (UNECA)
The Africa Private Sector Summit (APSS) Series 2 opened in the Ghanaian capital, Accra today with a call on African policymakers, private sector and academia to take bold steps to fast-track the free flow of business and trade under the African Continental Free Trade Area (AfCFTA) in an atmosphere of cooperation and partnership. The President of the Republic of Malawi, H.E. Mr. Lazarus Chakwera, urged participants to treat the AfCFTA as an opportunity and not a success in itself in a pre-recorded message played to an international audience across the world, including about 100 physically present. “AfCFTA is the runway from which our economies should take off,” the President asserted. President Chakwera stressed that AfCFTA is complemented by other continental initiatives, including the Protocol on Free Movement of Persons, and the Single African Air Transport Market (SAATM). “One area that I call on all countries is to revisit their policies that regulate the movement of African nationals and goods across African borders and through ports of entry,” the President stated.
Queries over Google’s planned billion-dollar investment in Africa (DW)
Google’s CEO Sundar Pichai recently announced a $1billion (€858 million) investment in Africa. The massive investment will run for over five years and cover a range of initiatives. Nigeria, Kenya, Uganda, and Ghana, will be the primary beneficiaries of the tech giant. It will prioritize improvement in connectivity and supporting innovative start-ups. The announcement comes when foreign direct investment (FDI) has been falling globally. However, for development economist Shuiabu Idris, the news means Africa is now being taken seriously by multinational companies. “A global giant like Google thinking about Africa and wanting to invest in Africa is something that is gratifying to know,” Idris told DW. But not all share Idris’s enthusiasm. Maximus Ametorgoh, a Ghanaian IT specialist, called for a critical evaluation of Google’s Africa venture. “We have to measure the advantages and disadvantages,” Amertogoh told DW. ”Some of these tech giants come, invest in small businesses, and end up acquiring those businesses.” He also warned that the tech giants “kill” the small businesses by owning all the codes after paying off the innovators. “Africa then comes back to the same farmland,” Amertogoh said.
The Ghanaian tech expert pointed out that Google’s proposals are not the problem, but instead, there was a need to assess the lasting impact of the investment.
Digital skills required to overcome Covid-19 trade impasse (Engineering News)
In addressing the impact of the Covid-19 pandemic on the lives and livelihoods of many entrepreneurs, Department of Trade, Industry and Competition export promotion director Luke Govender said digital skills need to be bolstered. He spoke during an October 20 webinar, hosted by Trade Forward Southern Africa, on UK export market opportunities and compliance.
East Africa adopts due diligence platform for cross border trade (The New Times)
As the African Continental Free Trade Area comes into effect, regional trade stakeholders have launched a source of data required to conduct due diligence on African entities; Financial Institutions, Corporates and SMEs, dubbed Mansa. The MANSA digital platform provides a single primary source of Know-Your-Customer (KYC) data required to conduct customer diligence checks on counterparties in Africa with a special focus on African Corporates, SMEs and financial institutions. This consequently reduces the risks to intra-African trade such as increased financial crime and reduces the high-cost acquisition data. This will among other things increase access to financing for SMEs after the identification of business opportunities in regional markets.
Due diligence in regional and cross border trade involves accessing and identifying existing or potential compliance issues with respect to international trade and commerce, including export controls, sanctions, and customs laws and regulations. The platform championed by Afreximbank and East Africa Business council among other entities is aimed at unlocking and activating trading under the Africa Continental Free Trade Area.
Strategy for quality health infrastructure in Africa 2021-2030 (AfDB)
This Strategy for Quality Health Infrastructure in Africa 2021-2030 (SQHIA) follows a request from Governors of the African Development Bank (AfDB or Bank) to define its role in addressing Africa’s health infrastructure deficits, drawing on its core expertise in infrastructure development. The request recognises the centrality of health to improving quality of life for Africans and enabling them to achieve their potential. The strategy also responds to growing demand from regional member countries (RMCs) for the Bank’s support in overcoming gaps in national health infrastructure, which have been exposed by COVID-19 and other health crises.
How to make Nigeria leader in maize production, by PwC (The Nation Newspaper)
With total production of 11 million metric tonnes (MMT), Nigeria is arguably, Africa’s second largest producer of maize after South Africa. Ethiopia occupied the third-place position. The three countries accounted for about 39 per cent of the continent’s total maize output in 2019.
Engineering market entrant eyes Africa’s energy, water, telecoms (ESI Africa)
A newly established engineering firm, Osmotic Engineering Group (OEG), aims to collaborate with funders and financial, legal and environmental experts and others who prepare projects to financial close in the energy, water and telecommunications market. Projects will typically include large-scale infrastructure ventures that are developed by means of public-private partnerships (PPPs) or other forms of project finance. The AfDB highlights that total investment in PPP infrastructure increased nearly sixfold from $1.2 billion in 2004 to $6.9 billion in 2019, while the number of PPP projects doubled from 16 to 30. Furthermore, the AfDB estimates that Africa will require infrastructure funding of up to $170 billion a year by 2025, with an estimated shortfall of around $100 billion a year. This is against the background of the COVID-19 pandemic, which saw the continent’s GDP contract by 2.1% in 2020, its first recession in half a century. Dr Frank Igboamalu, CEO of the newly established OEG, said: “Dealing with this problem is a complex issue that requires a combination of engineering excellence and readily available funding.”
African countries content with cooperation with China; accusations against China-Africa relations ridiculous: Rwanda Ambassador (Global Times)
The year 2021 marks the 50th anniversary of the establishment of diplomatic relations between China and Rwanda and the two countries have witnessed close cooperation over the past years. Rwanda is now also actively participating in China’s e-commerce industry helping local people improve their livelihood. Global Times reporter, Xie Wenting (GT), asked James Kimonyo (Kimonyo), Rwanda’s ambassador to China, about his opinions on bilateral relations, China-Africa cooperation as well as his views on the malicious attacks against China-African relations, in an exclusive interview.
Our cooperation is hinged on mutual trust which ensures that our people work together to improve their livelihoods. China, in that sense, has contributed significantly in numerous sectors, starting from infrastructure to health, education, trade, agriculture, development and many more. Rwanda has continuously supported China in the international forum. Every time when there is a global challenge to be addressed, Rwanda is on the side of China. I should say this is a time when we should be able to tell the story of how successful our diplomatic relations with China have been.
International
COVID-19 recovery must change the investment game, says UNCTAD chief (UNCTAD)
In the wake of the COVID-19 pandemic, the world must invest in preparing for a “new normal” of larger and more frequent shocks. This was the resounding message from world leaders as the international investment community convened virtually for UNCTAD’s 7th World Investment Forum from 18 to 21 October. But the current investment status quo “is not fit for building resilience”, UNCTAD Secretary-General Rebeca Grynspan said on the forum’s opening day. Despite a May call from the International Monetary Fund for $50 billion to help reduce the COVID-19 vaccine “equity gap”, money has not poured in where it should, leaving a major investment gap and more than 97% of people in the poorest countries without a vaccine.
“Clearly, the problem is not that we do not have enough money,” Ms. Grynspan said, highlighting that the S&P 500, a United States stock market index, had more than quadrupled over the past decade. “But incentives are misaligned. Resources are misallocated. And risks are mispriced. We need to change the rules of the game.”
The WTO has weathered recent global crises — DDG Paugam (WTO)
The international trading system has demonstrated its usefulness and its resilience, especially during the COVID-19 pandemic, Deputy Director-General Jean-Marie Paugam declared in an address to the European Economic and Social Committee on 20 October. “While we witnessed a proliferation of restrictive measures at the beginning of the pandemic, States quickly chose the path of cooperation and trade facilitation.” Rejecting the scenarios of “the WTO’s rebirth, disintegration or decline”, he considers that the challenge for the 12th Ministerial Conference will be “rebuilding trust, as no negotiations can be conducted without it”. His full speech is provided below.
Pharmaceutical companies and rich nations delivering just one in seven of the doses promised for developing countries (Oxfam International)
Developing countries have been hit with an endless tide of inadequate gestures and broken promises from rich countries and pharmaceutical companies, who are failing to deliver billions of doses they promised while blocking the real solutions to vaccine inequality, according to a new report published today by the People’s Vaccine Alliance. The report, “A Dose of Reality”, found that of the 1.8 billion COVID vaccine donations promised by rich nations only 261 million doses ―14 percent― have been delivered to date, while western pharmaceutical companies have delivered only 12 percent of the doses they allocated to COVAX, the initiative designed to help low- and middle-income countries get fair access to COVID-19 vaccines. At the same time, the EU and other rich nations have refused to support the proposal of over 100 nations to waive patents on vaccines and COVID-19 related technologies while leading pharmaceutical companies have failed to openly share their technology with the World Health Organisation to enable developing countries to make their own vaccines and save lives.
Africa seeks EU help on global vaccine-waiver (EUobserver)
African countries are seeking EU help on waiving vaccine patents to combat the pandemic at an upcoming meeting in Rwanda. “The AU reiterated its support for the Trips Waiver and urged the EU to engage constructively towards conclusion of a targeted and time-limited Trips Waiver which is critical to a WTO [World Health Organisation] response to the Covid-19 pandemic,” the African Union (AU) is keen to say in a joint communiqué after European and African foreign ministers meet in Kigali on 25 October, according to a draft, dated 13 October, seen by EUobserver.
A WTO ministerial meeting in November is to decide whether to waive these for vaccines, tests, and other Covid-related medical devices so long as the pandemic lasts. “Even though France, Greece, Italy, and Spain have already come out in support of the waiver, another handful of governments in the EU with strong ties to pharmaceutical corporations is choosing to put shareholder interests over the lives of people across the globe,” Médecins sans frontières (MSF) said this week.
Platform for Collaboration on Tax Strengthened Support to Countries During the COVID-19 Pandemic (IMF)
The Platform for Collaboration on Tax (PCT) – a joint initiative of the IMF, OECD, UN and the World Bank – enhanced its support to countries in the area of domestic resource mobilization during the COVID-19 pandemic, according to the PCT Progress Report 2021. The report highlights that the PCT Partners are committed to deepening their tax collaboration further with a revamped work program to help countries develop resilient tax systems and better fiscal policies in response to the crisis.
Kenya asks UN security council to tackle illegal trade of natural resources (The Standard)
Kenya has appealed to the United Nations Security Council to move swiftly and address illegal exploitation and trade of natural resources within countries in Africa’s Great Lakes Region. In a high-level ministerial debate led by Foreign Affairs CS Raychelle Omamo, Kenya said the UN must put mechanisms in place to improve and reinforce the security around mining regions, seek rapprochement between mining communities, local authorities and security actors to resolve conflicts and promote the rights of persons belonging to communities around mining regions. The CS said Kenya in its Presidency at the UNSC had further asked the council to identify and encourage all stakeholders to guarantee transparent and responsible mineral sourcing supply chain due diligence, support the strengthening of national border control and sustainable regulatory and customs frameworks and the adoption of government revenue targets to finance development.
How machine learning could help make government spending greener (UNCTAD)
The global community is facing a trio of urgent and interlinked planetary crises: climate change, biodiversity loss and pollution. Fiscal policies implemented in this crucial decade for action on climate and biodiversity will play a vital role in solving these crises and transitioning to an inclusive green economy – if designed and targeted well. That’s because fiscal policies and public finance are the most direct and impactful levers for supporting socioeconomic activities and trajectories. As calls for green recoveries from COVID-19 grow, there is mounting evidence that some of the most rewarding policies with regard to impact on key social and economic indicators are the very same policies that will lead us towards deep decarbonization and improvements in pollution and nature loss.
However, there are two major, interlinked challenges to green government spending: Public finance is finite. And during the COVID-19 crisis, government spending priorities have been stretched thin by rescue and recovery stimulus efforts. Many countries lack data and causal analysis on the environmental impacts of spending policies. This makes it difficult for policymakers and decision-makers to design and advocate for green spending.
An exploratory research venture between the UN Environment Programme (UNEP) and UNCTAD showcases how machine learning can provide a data-driven approach to designing green government spending plans.
E-waste becomes global menace in Covid-19 era (Business Daily)
This year’s worldwide electronic waste will be a mountain of an estimated 57.4 million tonnes, a report by Global E-waste Monitor released on World E-Waste Day indicates. The waste, which is said to be heavier than the Great Wall of China, earth’s heaviest artificial object, has seen rapid accumulation over the Covid-19 pandemic period as people dumped obsolete devices and purchased new ones as the new normal pushed them to work from home. Global E-waste Monitor’s data shows that an estimated 53.6 million metric tonnes of electronic waste were generated in 2019, a 21 per cent jump in the five years since 2014. What now concerns e-waste experts is the prediction that global e-waste will hit 74 million metric tonnes by 2030 as technological obsolescence coerces people to fill up landfills with waste. An emerging viewpoint of the e-waste issue is the ever-rising world demand for data and digital services.
WTO agriculture negotiators must step up engagement for MC12, says Chair (WTO)
The Chair of the WTO agriculture negotiations, Ambassador Gloria Abraham Peralta (Costa Rica), has told trade officials that the consultations she has held with small groups of members have been constructive but that negotiators must step up their engagement with one another ahead of the WTO’s 12th Ministerial Conference (MC12) at the end of November. “I have been encouraged by the level of engagement by members,” she said at a meeting of the Committee on Agriculture in Special Session on 14-15 October.
The broken $100-billion promise of climate finance — and how to fix it (Nature)
Twelve years ago, at a United Nations climate summit in Copenhagen, rich nations made a significant pledge. They promised to channel US$100 billion a year to less wealthy nations by 2020, to help them adapt to climate change and mitigate further rises in temperature. That promise was broken.
“By the time we get to Glasgow, if they haven’t given us another $100 billion [for 2021], then they are completely unable to meet their obligations,” says Saleemul Huq, director of the International Centre for Climate Change and Development in Dhaka.
Compared with the investment required to avoid dangerous levels of climate change, the $100-billion pledge is minuscule. Trillions of dollars will be needed each year to meet the 2015 Paris agreement goal of restricting global warming to “well below” 2 °C, if not 1.5 °C, above pre-industrial temperatures. And developing nations (as they are termed in the Copenhagen pledge) will need hundreds of billions of dollars annually to adapt to the warming that is already inevitable. “But the $100 billion is iconic in terms of the good faith of the countries that promised it,” Huq says.
Exposed: How big farm lobbies undermine EU’s green agriculture plan (DW)
It is a long way from the farms and fields of Sezze in central Italy to the halls of the European Parliament in Strasbourg. But the decisions made at the European assembly this week can directly impact the lives of farmers like Valentina Pallavicino.
“What they ask for we already do,” she says when presented with some of the key elements of a new “green” strategy for the future of European farming, known as “Farm to Fork,” which aims to slash pesticide and antimicrobial use, set a threshold on food waste, and rely on renewable energy to create a sustainable food system. “We don’t use antibiotics, preservatives, or chemicals,” she added.
The battle over who represents the true voice and interests of farmers like Pallavicino and Lis, and the millions of Europeans they feed, reaches a climax this week as the European Parliament prepares for a vote on a radical new direction for farming in the EU. Any changes the legislative body introduces require approval from EU member states before taking effect.
Farmers will receive support from the Common Agricultural Policy (CAP) budget, the EU’s huge farming subsidy program that has paid out more than €50 billion ($58 billion) every year since 2005. Of the funding, 80% goes to 20% of the biggest farms in the EU.
How would an economic slowdown in China affect emerging markets? (Oxford Business Group)
A major driver of global trade, China’s economy has recently experienced a slowing of growth, giving rise to concerns about possible negative impacts on emerging markets. China’s economy grew by 4.9% year-on-year (y-o-y) in the third quarter, the National Bureau of Statistics reported on October 18, significantly below both the 7.9% y-o-y recorded in the second quarter and the expected full-year expansion of 8%, as forecast by the IMF. A key factor behind this disappointing performance was a series of power shortages, which had an impact on industrial output across the country: many factories were forced to stop production in late September as a surge in the price of coal led some power producers to reduce output.
Given that China is the world’s second-largest economy and deeply embedded within the global economic system, any slowdown could have significant effects for emerging markets around the world. Those markets whose exports to China account for a significant proportion of GDP stand to be the most affected.
The effects of any prolonged Chinese slowdown would be felt far beyond South-east Asia. In recent years China has developed strong trading relationships with a number of African countries, many of which export large amounts of natural resources necessary for China’s industrial expansion, such as minerals, metals and oil. Angola is the continent’s largest exporter to China, shipping around $23bn worth of goods in 2019, principally mineral fuels and oils. However, a slowdown in China’s economy, and in particular its industrial sector, could affect countries such as the Republic of the Congo, Namibia and the Democratic Republic of the Congo, all of which derive between 15-20% of their GDP from exports to China.
Although China is an important trading partner for many emerging markets, a number of countries have successfully developed diversified export economies in recent times. The need for a diversification was brought sharply into focus by the coronavirus pandemic, which disrupted a large number of the world’s supply chains, many of which were closely linked to China.
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SA tops latest Africa financial market index report (Citypress)
“South Africa’s strong performance across pillars was hampered by economic growth. It scored full points on the sixth pillar, which calculates the enforceability of standard master agreements, and also scored higher than all countries on market depth and access to foreign exchange pillars.
Capital markets play a critical role in a country’s economy. However, compared with the rest of the world, African countries’ financial markets continue to be fragmented and shallow, affecting their ability to access international capital and preventing them from better using domestic investments and savings. Absa – together with the Official Monetary and Financial Institutions Forum, an independent forum for central banking, economic policy and public investment – launched the fifth edition of the annual Africa Financial Market Index last Wednesday. It measures the openness and attractiveness of African countries’ financial markets to foreign and domestic investment, using data from central banks, securities exchanges and international financial institutions.
Natural gas prospectors strike it lucky with massive Free State helium find (Eyewitness News)
In a grassy plain in South Africa, once the world's largest gold producer, prospectors have stumbled upon a new treasure: helium. Popularly known for birthday balloons and squeaky voices, helium plays an underappreciated role in medical scanners, superconductors, and space travel.
Mnangagwa’s efforts: Currency crisis and wrangling over exchange controls may undo early economic progress in Zimbabwe (Daily Maverick)
President Emmerson Mnangagwa’s re-engagement efforts with the European Union (EU), United Kingdom (UK) and United States (US) seem to be paying dividends — albeit on a marginal scale. In his State of the Nation address this month, he extolled these efforts and the economic achievements of his government. In his ascendance to the presidency, Mnangagwa coined the mantra “Zimbabwe is open for business”. This was meant to signify his departure from former president Robert Mugabe’s isolationist approach and open investment opportunities with the international community. After many false starts, Mnangagwa’s administration has doubled down on its efforts to mend relations and improve Zimbabwe’s image. But while he blows his own trumpet, the reality is more of mixed success, setbacks and sometimes going in circles.
Kenya and Uganda should honour trade agreements (Business Daily)
That Kenya and Uganda have set a meeting for next month to iron out issues affecting trade between the two countries is good news. Kenya and Uganda have in the past year been embroiled in serious feuds over several products, including sugar, milk, and poultry. The long-drawn trade tensions between the two countries have been damaging and it is time decisive action is taken to restore normalcy for the sake of progression. Officials from Kenya are scheduled to visit Uganda in November to, among other things verify claims that sugar and milk imported from the landlocked neighbour originates from third-party countries — a claim Kampala denies. This is encouraging because it presents an opportunity for both sides to state their respective positions and hopefully find a breakthrough out of the situation.
Kenya and Uganda remain dependable trade partners and everything should be done to ensure this relationship continues.
Trucks using Northern Corridor triple on improved port efficiency (Business Daily)
Mombasa Port and Northern Corridor have recorded an increased efficiency in the past two weeks despite an increase in cargo being hauled along the corridor. According to Mombasa Port and Northern Corridor Community performance weekly report, the number of trucks using the corridor increased from 1,944 in the week ended October 8 to 5,044 trucks which were registered at Mariakani weighbridge. Despite the sharp increase in the number of trucks using the corridor, the vehicles registered 99.51 percent weighbridge compliance up from 89.51 percent in the previous year. Kenya Ports Authority (KPA) in its statement said the efficiency was as a result of its cooperation with other government agencies and private stakeholders.
Malawi, Kenya revive bilateral agreements ahead of Chakwera’s visit (Malawi Broadcasting Corporation)
Malawi and Kenya have renewed commitment to bilateral relations following the end of the 3rd Joint Permanent Commission of Cooperation (JPCC) on Monday in Nairobi, Kenya. “The JPCC which is a forerunner to the visit by Malawi President Dr Lazarus Chakwera is aimed to revive and strengthen relationships by ensuring that there are sound MoU’s (Memorandum of Understanding) through the framework of the JPCC. “Our meeting today is the realisation of various Free Trade Areas (FTA's) in Africa. Kenya is also a member of COMESA, we need to do a little more than we have done before,” he said.
Uganda registers trade surplus of $25.32 million with EAC in August –Finance (Daily Monitor)
Unlike in the past, during the month of August 2021, Uganda’s trade position with the EAC and the Rest of Africa improved from deficits of $64.93 million and $63.61 million to surpluses of $25.32 million and $45.96 million respectively. This development implies that there has been a stable increase in trade volume between Uganda with East Africa and the rest of Africa countries. Compared to August 2020, the Ministry of Finance Planning and Economic Development said in the economic performance report for the month of September 2021 that there was a turnaround in Uganda’s trade position with the Middle East from a surplus of $179.86 million to a deficit of $73.43 million in August 2021 mainly due to a slowdown in exports of gold to the region. However, the ministry of finance said despite an increase in export receipts for items like coffee, tobacco, fish and its products, export receipts declined for the third consecutive month.
Federal Govt Concludes Plan To Establish Agro-processing Zones (Leadership)
The federal government has concluded arrangements to facilitate the development of at least one agro-processing zone in each senatorial district of the country.
Minister of state for industry, trade and investment Amb. Mariam Katagum disclosed that under the 2021/2022 budget, the ministry will roll out the development of agro-processing zone in each geopolitical zone in the first phase of the scheme. She said the government would continue to proactively engage commodities associations with a view to ensuring that challenges militating against their operations were tackled, especially now that the country is gradually exiting the COVID-19 pandemic.
‘How Nigerian manufacturers, exporters can exploit weak currency’ (The Guardian Nigeria)
Local manufacturers and non-oil exporters have been urged to take advantage of the devalued currency to improve their export capacity and hedge against local challenges, especially under the African Continental Free Trade Area (AfCFTA) deal. Giving the advice during the Bank of Industry’s (BoI) yearly SME Directorate Customer virtual forum, Senior Special Assistant to the President on Public Sector Matters and Secretary, National Action Committee on AfCFTA, Francis Anatogu, urged small businesses to exploit the opportunities that the COVID-19 pandemic has offered in terms of processes and technology.
“The problem we have is the problem of growth. We need to grow our economy to serve the continent. The challenges to AfCFTA implementation border on production, infrastructure, insecurity, predatory trade practices, regulation and funding. We are however working on the opportunities that these challenges present.
“For the trade agreement to work, we need to produce what we will export and equally invest in people. We need to help local demand through patronage and address issues of rising cost of production. The liberalisation of 90 per cent of the products will happen over a 10-year period and this gives us time to develop capacities,” he added.
Nigeria’s Economic Resurgence: Learning from the African Experience - Akin Adesina (Proshare Nigeria)
the world continues to deal with the effects of the global COVID-19 pandemic. The pandemic has caused so many deaths and upended global economic growth. Due to COVID-19, Nigeria’s economic growth rate declined to -1.8% in 2020. This mirrors the pattern across Africa, as the continent posted a -2.1% growth rate in GDP, its lowest in two decades. The African Development Bank responded rapidly in supporting African countries. We launched a $10 billion Crisis Response Facility to support countries. We provided $289 million in budget support to Nigeria. The GDP growth rate for the continent will recover to 3.4% this year. We project Nigeria’s economic growth rate will rebound to 2.4% this year and reach 2.9% by 2022.
The recovery will depend on two critical issues: access to vaccines and tackling debt issues. Nigeria must decisively tackle its debt challenges. The issue is not about debt-to-GDP ratio, as Nigeria’s debt-to-GDP ratio at 35% is still moderate. The big issue is how to service the debt and what that means for resources for domestic investments needed to spur faster economic growth.
Afreximbank reiterates cross-border payments settlements in local currencies (The Guardian Nigeria)
Nigeria’s contributions to African trade may increase significantly in the near future as Afeximbank has unveiled plans to roll out a payment system that would enable intra-African trade to be consummated using domestic currencies. Besides, the bank also disclosed that it has approved over $26 billion in support of Nigerian public and private sector entities since its inception in 1993. Executive Vice President, Corporate Governance and Legal Services, Afreximbank, George Elombi while addressing participants that gathered at the Intra – Africa Trade Fair (IATF) 2021 official Nigeria roadshow, said the initiative is expected to enhance industrialisation and export development in Africa as well as reduce over dependence on foreign currencies. According to him, despite Nigeria’s status as the largest economy in Sub-Saharan Africa, representing about 17 per cent of the African economy and about 64 per cent of the economy of West Africa by GDP, its export contribution to the African region remains at 20 per cent while import constitutes about seven per cent.
After mining, DR Congo turns focus on ‘illegal’ forest harvesting contracts (The East African)
The Democratic Republic of Congo government has announced an imminent purge of “doubtful contracts” in the forestry sector, promising another round of anxiety in an area of the economy deemed exploited by foreign entities. The decision was announced on Monday by the government spokesman and Minister for Information Patrick Muyaya, who said Kinshasa would revisit all permits on tree harvesting to ensure they are not exploiting the country.
Sudan’s key Red Sea ports coveted by regional powers (Eyewitness News)
From Washington to Moscow, Tehran to Ankara, Sudan’s strategic Red Sea ports, blockaded for a month by protesters, have long been eyed by global powers far beyond Africa’s borders. It hosted Iranian fleets for decades under Bashir, to the dismay of Tehran’s regional rival Saudi Arabia, whose Red Sea port of Jeddah lies opposite Port Sudan on the other side of the waterway.
Africa
African Union, RECS and RMs meet to coordinate implementation of the continental integration programme (African Union)
The African Union (AU), represented by the Bureau of its Assembly, Chairpersons of the Eight (8) Regional Economic Communities, as well as Regional Mechanisms, held their third Mid-Year Coordination Meeting on the 16th of October, to harmonise and coordinate the implementation of the continental integration programme. It was chaired by H.E. Félix Antoine Tshisekedi Tshilombo, President of the Democratic Republic of Congo (DRC), and Chairperson of the African Union for 2021.
President Felix Tshisekedi, highlighted that; “Africa needs to establish a specialized unit to monitor progress” on COVID19. He applauded President Cyril Ramaphosa who is the continental COVID19 champion, for his work in acquiring vaccines, and promoting the manufacturing of vaccines on the continent. He also thanked the AfricaCDC Director Dr John Nkengasong for his contribution to the continental response to the pandemic.
The Southern African Development Community (SADC)’s blueprint, the Regional Indicative Strategic Development Plan (RISDP) 2020-2030, places importance on the development of good infrastructure that will spur economic activity across the Region. Recognising that the requisite regional infrastructure and services hold the key to economic development and regional integration, ensuring affordable access to such infrastructure and services is vital.
African nations urged to harmonize competition policies to boost AfCFTA (News Ghana)
African nations should harmonize competition laws to deal with challenges arising from trade disputes for successful implementation of the African Continental Free Trade Area (AfCFTA), economic analysts said Tuesday in Nairobi. Kwame Owino, chief executive officer of the Nairobi-based Institute of Economic Affairs (IEA), said that despite the fact that the treaty took effect in January, many African countries have not worked on their competition policies to allow free movement of goods and services. “We need to have competition laws that go beyond the borders, however, they have to be built from the ingredients of existing policies in different countries and regional trade blocs. Tribunals do exist and have different ways of responding to infringements but this need to be harmonized for smoother integration,” he said during a meeting on competition laws and AfCFTA implementation.
Road impacts on ecosystems in sub-Saharan Africa (EurekAlert)
Sub-Saharan Africa is developing rapidly. With growing economies and increased trade, major road infrastructure plans have been developed for the region, which also hosts some of the world’s most unique and diverse ecosystems. New research looked into how roads might impact ecosystems in the region. Sub-Saharan Africa is one of the most biologically diverse places on the planet. It is home to a variety of iconic flora and fauna such as the African elephant, the baobab tree, and the chimpanzee, and also generates a range of ecosystem goods and services that sustain the livelihoods of many people. Road developments in the region are expected to have large and potentially harmful impacts on natural ecosystems across the region. Many in the conservation community believe that although these roads may benefit growing African communities and economies, they will also promote the overexploitation of African natural resources and further biodiversity loss.
Wanting to consider a more multidimensional approach, a new study by researchers from the International Institute of Applied Systems Analysis (IIASA), Austria and the University of Cape Town (UCT), South Africa published in Environmental Research Letters, set out to analyze the impacts past road projects in the region have had on ecosystems inside and outside protected areas across sub-Saharan Africa. The researchers reviewed 137 peer reviewed articles in search of documented reports of the effects of roads and their underlying mechanisms in areas across the region. Reports and evidence were divided into the four main regions of sub-Saharan Africa: Central Africa, East Africa, southern Africa, and West Africa. When analyzing the effects on biodiversity, specific taxonomic groups were also reviewed separately. All effects noted by the researchers contained identified mechanisms such as roads acting as barriers to movement or as a habitat, and by facilitating access, specifically to previously inaccessible land, markets, cities, and economic opportunities.
“Mitigating and managing the effects of future road development in sub-Saharan Africa will require researchers and environmental assessment practitioners to predict where interactions will happen and whether it is likely to affect ecosystem functionality.
Driving long-term industrial transformation in Africa (Trade Arabia)
Opportunities to boost the manufacturing sector in Africa are on the horizon, however, for the continent to witness long-term industrial transformation, both public and private sector stakeholders must join forces. These are some of the key findings from the Global Manufacturing and Industrialisation Summit’s (#GMIS2021) Digital Series on “Building Digital Capabilities for Inclusive and Sustainable Industrialisation in Africa”.
Li Yong, Director General of the United Nations Industrial Development Organisation (UNIDO) addressed the forum, stressing on the importance of accelerating digitalisation in Africa, as the continent builds productive sectors. “We must go further to help African countries to make their digital transition, without leaving anyone behind. We must build capabilities, enhancing digital infrastructure, improve digital skills and access to training and leverage innovative capacities. Strong partnerships with local and regional partners in business, research and government need to be built, as well as with multilateral organisations such as the African Union, Regional Economic Communities, United Nations Economic Commission for Africa and the African Development Bank.”
Celebrating the contribution of African women to development in Africa (IPPMedia)
The commemoration that was under the theme ”Strengthening Rural Women’s Contribution to Sustainable Food Systems through the African Continental Free Trade Area’’. The day was celebrated in recognition of the crucial role that women and girls play in ensuring the sustainability of rural households and communities, improving rural livelihoods and overall wellbeing of the African Continent.
H.E. Amb. Josefa Lionel Correia Sacko Commissioner for Department of Agriculture, Rural Development, Blue Economy, and Sustainable Environment added that rural women are the predominant labour providers in agriculture and agri-businesses. They represent about 50% of the labour force in the sector. It is, therefore, critical that their contributions to sustaining food-systems in the continent are recognized and celebrated.
‘Interstate agricultural research to boost trade, devt’ (Daily Monitor)
The Technical officer in charge of monitoring and evaluation at the Association for Strengthening Agricultural Research in Eastern and Central Africa (ASARECA), Mr Moses Odeke has said there is need to dialogue on emerging research on agricultural issues in order to promote development of the sector in the sub region. “We need to convene stake holders to discuss other emerging issues such as cross border trade facilitation, sharing of technologies across national boundaries and scaling up of agricultural technologies across national borders,” he said.
“We need to mobilize additional resources across member’s countries to be able to build their capacities both human and infrastructural, for agricultural research for development in the region,” he said.
Outlook: Africa’s changing agriculture landscape (ZAWYA)
Surging commodity and food prices are hurting sub-Saharan African countries at a time of weak growth. As more go hungry and malnutrition continues, achieving the United Nations’ Zero Hunger initiative to eradicate poverty from the continent by 2030 will prove even more challenging. Even before COVID-19 decimated economic growth and pushed millions of Africans below the poverty line, some 690 million of the continent’s citizens were struggling with undernourishment, according to a new report by the United Nations Food and Agriculture Organization (FAO). The African Development Bank expects the continent’s $35 billion food import bill to rise to $110 billion by 2025.
“On average, 21 percent of budgets devoted to food and agriculture were not spent, suggesting that large financial commitments are not sufficient to enable a country to transform its agricultural sector,” says the report, which focuses on 13 African states including Ethiopia, Uganda and Tanzania.
African leadership can help realise continental potential (SAnews)
President Cyril Ramaphosa says Africa is in need of “strong democracies, accountable institutions, capable leaders, peace and stability” if the continent is to take advantage of the potential of its vast human capital and mineral resources. “We have enough sun, wind and minerals to become a global leader in the green economy. We are a continent of young people, [possessing] the energy, initiative and skills to establish Africa as a new frontier of production and innovation. Turning to present day challenges, President Ramaphosa emphasised that although much has been done for the prosperity of African people, much is still to be done to overcome the struggle
US-Africa trade pact AGOA at risk? African leaders raise alarm (The Africa Report)
The Joe Biden administration is eager to start discussing how it can apply its ‘build back better’ mantra to commerce with Africa when it virtually hosts the continent’s trade ministers this week. For their part, America’s African partners want to make sure that Washington doesn’t bulldoze their two-decade-old, duty-free access to the US market in the process. Growing tensions behind the scenes will hit the spotlight on Wednesday and Thursday when the Office of the US Trade Representative (USTR) convenes the annual African Growth and Opportunity Act (AGOA) ministerial. With the unilateral trade preferences program up for renewal in 2025, Washington’s stated desire to negotiate two-way trade deals, which also benefit US exports, has been raising alarm bells in boardrooms and government offices across Africa.
AGOA: Minister Ganoo participates virtually in Private sector forum (Republic of Mauritius)
The Minister of Foreign Affairs, Regional Integration and International Trade, Minister of Land Transport and Light Rail, Mr Alan Ganoo, participated virtually, this evening, in the first panel of the African Growth and Opportunity Act (AGOA) Private sector forum, “AGOA and beyond”, from Port Louis.
In a statement, the Foreign Affairs Minister underlined the key role of the AGOA for Mauritius in terms of trade, while indicating that exportations to the US under the Agreement amount to Rs 7 billion per year. He emphasised that, in the country’s interest, it is thus crucial to think of other Mauritius-US trade partnerships after the expiration of the AGOA in 2025.
Maximising growth and minimising risk (African Review)
At AFSiC 2021 Simon Gray, head of business development & marketing at BVI Finance, moderated a formidable panel of financial experts to discuss the unique opportunities posed by the African continent, and how funding can be secured to unlock this potential
Agnes Gitau, partner at GBS Africa, began by explaining some of these investment opportunities on the continent. She commented, “For me, the unique opportunities lie in African’s recovery post Covid-19. Sectors investors are interested in are those aimed at addressing society needs like healthcare – which does have a huge gap and requires funding. Africa requires over US$100bn in health infrastructure and, in the last six months, we have seen venture capital, private equity and private financing institutions which are funding tech start ups focused on the healthcare sector. “Other unique areas are in fintech. There are a lot of innovations and great ideas coming out of the continent and they need financing. The governments alone will not be able to finance these and so it is an opportunity for the private sector.”
International
Botswana calls for investment remobilization for least developed countries (News Ghana)
President Mokgweetsi Masisi of Botswana on Tuesday called for the global community to remobilize investment with a view of mitigating challenges faced by least developed and landlocked developing countries. Masisi was deliberating his statement on the occasion of the virtual World Investment Forum being held under the theme: Investing in Sustainable Recovery, which he joined from Gaborone, Botswana’s capital city. “The global pandemic has had a severe impact on investment flows in general and depressed investments in the Sustainable Development Goals (SDGs) in particular with some of the achievements made between 2015 and 2019 now in danger of reversal,” said Masisi. It is therefore essential for the global community to remobilize investment, channel it toward SDG sectors in order to mitigate the unique challenges faced by least developed and landlocked developing countries as well as special situations faced by middle-income nations, he said.
India opposes penalty for delay in WTO notifications (Mint)
India has strongly opposed a proposal from developed countries for administrative actions and penalties in case of delayed submissions of notifications by member countries. It is wrong to assume wilful default on the part of members rather than acknowledging the capacity constraints and other legitimate difficulties faced by many developing countries, India said. Developed countries, including the US, European Union, UK, Australia, and Canada, have moved a draft general council proposal on procedures to improve compliance with notification requirements under World Trade Organisation (WTO) agreements that requires a country that fails to submit notifications by the deadline to explain the delay every six months.
DDG Paugam commends STDF’s broad impact on catalysing SPS capacity development (WTO)
WTO Deputy Director-General Jean-Marie Paugam underlined on 14 October the role of the Standards and Trade Development Facility (STDF) in addressing new challenges at a time when climate change is having an impact on food safety, animal and plant health capacity in developing and least-developed (LDC) countries. Chairing the virtual meeting of the STDF Policy Committee, DDG Paugam put the spotlight on the small-scale farmers, producers, traders and governments who benefit from the STDF’s support to meet sanitary and phytosanitary (SPS) requirements for trade, based on international standards.
Will Countries Reach an Agreement at COP26? (Inter Press Service)
The 26th UN Climate Change Conference of the Parties (COP26) is just 15 days away. The COP26 secretariat, the UK and Italian government and governments of the participating countries are finalising their last days of preparation before meeting in Glasgow, UK from October 31 to November 12. The major point of discussion now is: Will countries reach an agreement on three key issues? (a) phasing out of coal, (b) scaling up nationally determined contributions (NDCs); and (c) raising financing for adaptation.
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South Africa’s electricity woes continue to place manufacturing at risk (Engineering News)
The lack of reliable electricity supply is not only leading to lost production and increased costs across South Africa’s shrinking manufacturing sector, but has left enterprises unable to plan, invest and grow, Manufacturing Circle executive director Philippa Rodseth warned on Tuesday. Speaking at the start of a two-day electricity forum hosted jointly with the Industrial Development Corporation to discuss collaborative solutions to the ongoing problem, Rodseth said load-shedding remained an area of great concern, as did inadequate investment and poor maintenance by municipal distributors.
The region was at a “tipping point” and at risk of becoming a “rust belt”, with significant plant closures, rising unemployment and crime, as well as low rates of investment.
As the world’s most energy-insecure continent, Africa is in perfect position to lead a revolution (Daily Maverick)
These are the voluntary commitments that lie at the heart of the Paris Agreement and capture each country’s effort to reduce emissions and adapt to the impacts of climate change. SA’s updated figures significantly ratchet up our commitments as it brings forward by a decade the date at which it will begin to reduce emissions: they will start to fall from 2025 rather than 2035, with the new target for 2030 set 32% lower than previously. Cabinet has approved the Climate Change Bill, which will facilitate the transition to a greener economy and compel businesses to reduce greenhouse gas emissions. This is promising. Aside from the crushing imperative to wean global economies off fossil fuels, it is becoming evident that growth and climate action don’t have to be trade-offs. And clearly, some in our government (but more in business) have recognised this.
Cote d’Ivoire’s Ambassador Sakaria Kone welcomes elevation of trade ties with South Africa (IOL)
Minister of International Relations and Cooperation Naledi Pandor was on Tuesday expected to arrive in Abidjan, the capital of Côte d’Ivoire, leading a South African delegation at the inaugural session of the Joint Commission for Cooperation (JCC) between the two nations. The Côte d’Ivoire-South Africa JCC was established in 2015. “The JCC is being preceded by meetings of senior officials from the two countries on October 19, 2021. The ministerial segment of the JCC is scheduled for October 20-21, 2021,” said spokesperson for the Department of International Relations and Cooperation (Dirco) Clayson Monyela. He said the JCC will provide an opportunity for the two countries to review the status of bilateral relations, and exchange views about continental and global issues of mutual concern.
‘Make use of Zim Dry Port facility’ (Chronicle)
ZIMBABWEAN exporters should tap into the comparative advantages presented by the Zimbabwe Dry Port facility at Walvis Bay in Namibia to increase trade and investment from Europe and West Africa.
The dry port facility, which was commissioned by President Mnangagwa also seeks to boost trade and bilateral relations between Zimbabwe and Namibia. Furthermore, it is hoped that the Zimbabwe Dry Port would spearhead the growth of more imports and exports for the Zimbabwean market.
Zimbabwe as an economy required to focus on intra-Africa trade pitched by President Mnangagwa to attain an upper middle-income economy by 2030 and Walvis Bay is the most unanimous port for trade with the western side of the continent. Mr Moses said exporters and importers should also use the Zimbabwe Dry Port as the facility offers competitive rates on the back of improved cargo processing technology.
How Rwanda trade portal offset some Covid-19 impact on business (The New Times)
During the United Nations Conference on Trade and Development (UNCTAD) quadrennial conference in Bridgetown, Barbados world leaders reiterated the importance of improving trade in accelerating the post-Covid-19 economic recovery.
The conference, UNCTAD 15, which the UN Secretary-General, António Guterres, described as the “Olympics of trade, development, investment, policy and technology discussions,” took place from October 3 to 7. Guterres used the platform to rally world leaders, among other things, towards embracing vaccine equity and greater solidarity to tackle trade protectionism, debt distress, the climate crisis as well as other pressing global challenges. His rallying call came at a time, back in Rwanda, UNCTAD has worked with the government and other partners including TradeMark East Africa and the International Trade Centre (ITC), among others, to implement the Rwanda Trade Portal (RTP).
“Rwanda Trade Portal provides traders with transparent information on export, import and transit procedures and is a very good tool for the Government to identify administrative bottlenecks and to measure the impact of the trade facilitation reforms through the National Trade Facilitation Committee,” noted the Minister of Trade and Industry, Beata Habyarimana, on the importance of RTP.
“Since the launch of the Rwanda Trade Portal in March 2018, the implementation team has covered close to 30 key commodities resulting in the publication of around 200 procedures with more than 200 laws and regulations, up to 700 forms and requirements and close to 150 civil servants with their contact details,” she added.
Japan’s trade with Nigeria valued at $1 billion annually, committed to Gulf of Guinea stability (Nairametrics)
The Japanese Ambassador to Nigeria, Mr Matsunaga Kazuyoshi, has stated that the total trade volume between Nigeria and Japan is $1 billion annually. He added that Japan is also committed to the safety and stability of the Gulf of Guinea to improve maritime trade in Nigeria and West Africa. The ambassador disclosed this on Monday at the inauguration ceremony of a two-week anti-piracy first course organised by the Martin Luther Agwai International Leadership and Peacekeeping Centre (MLAILPKC) in Jaji, Kaduna.
The Japanese ambassador also revealed that the Japanese government is willing to boost trade volumes between both nations, citing the need for more bilateral trade between the two countries and also enhance economic growth of Nigeria to address unemployment and poverty.
IFC, Egypt’s National Council for Women Partner to Boost Economic Opportunities for Women (IFC)
IFC and Egypt’s National Council for Women signed an agreement today that will help increase women’s economic participation, including by boosting their access to bank lending, promoting equal pay, and providing more flexible work options. Over the next two years, IFC and the National Council for Women (NCW) will support Egypt’s government in developing gender-neutral laws, which will help give women more equal access to economic opportunities in Egypt. The reforms will complement the government of Egypt’s efforts to promote equal pay, increase access to finance, including for women entrepreneurs, and make it easier for women to work outside the home. The project aligns with Closing the Gender Gap Accelerator, a joint initiative between the NCW, the World Economic Forum and the Ministry of International Cooperation, which aims to enhance the legal and regulatory frameworks that encourage women to fully participate in Egypt’s economy.
Africa
Oneport 365; Digitization of the freight industry in Africa (TechCable)
As Africa sets to expand trade over the coming decade, a digital freight management company has a plan to help revolutionize a traditional industry critical to the continent’s economic future.
Freight Management encompasses the broad activities that facilitate the movement of goods through the supply chain to the designated endpoints. The process seeks to manage the complex operations, including the financial and administrative considerations involved in transporting goods such that there is an optimization of cost and time, and the inbound or outbound goods arrive at the right places in the best physical conditions. Globally, this industry is estimated by Global Industry Analysts Inc., (GIA) to be worth $2.1 trillion in 2021, and serves as the lifeblood of international commerce. In Africa, the services offered by freight companies stimulate economic activities and bridge factories to the market, underscoring the importance and value of freight management to the continent’s economy. Although the role of freight services is clear, the traditional way of providing trade support has failed in unleashing the potential of cross-continental trade. According to 2019 data from UNCTAD, Africa depends on the rest of the world for 85.8% of its total import, compared to Latin America and the Caribbean (84.9%), North America (81.5%), Asia (38.5%), and Europe (33.9%). On the flip side, intra-regional export amounted to 15.5% of total export trade within the year, against 30.1%, 59.6%, and 68.0% intra-regional trade in North America, Asia, and Europe respectively. At the heart of the high dependence of Africa on the rest of the world for trade is a myriad of issues related to tariffs and poor infrastructure. Due to the unavailability of critical road, rail, and port infrastructure, traditional ways of handling freight can be expensive for businesses in terms of monetary and non-monetary costs. The inherent difficulty in transporting goods to where they are needed at the right time and cost negatively impacts the business environment and, when aggregated on a national or continental level, results in lost Gross Domestic Product (GDP).
Africa: Digitisation and transparency will drive private sector growth (The Africa Report)
While Africa has so far avoided the worst of the health consequences of the coronavirus, relative to other parts of the world, the pandemic has laid bare the underlying market fragility across the continent. The pan-African economy is enduring its first extreme recession in 25 years, pushing per capita GDP down ten per cent in nominal terms to levels last seen in 2013. Very little if any fiscal rescue came from Treasuries to consumers, workers, and civil servants across Africa to cushion the economic blow that followed the pandemic response. The hardest hit are workers in the informal sector, which makes up 90% of the economy and 60% of the workforce, according to the International Labor Organization. Financing to these informal micro, small and medium-sized enterprises (MSMEs) was already severely limited – the finance gap was projected at $330bn in 2019, according to the IFC – which has perpetually choked MSME growth. As the world looks to build back better, how do we improve financing to the private sector engine of the African economy? One critical answer: scaling MSME information accessibility through digitisation. As digitisation increases, the discoverability of opportunities and overall market transparency increases, which lowers the cost of doing business and makes growth financing less proximity-dependent. Private markets grow based on this enabling formula.
Africa Oil Week to highlight unrivalled opportunities (Trade Arabia)
Africa Oil Week is expected to stimulate upstream transactions, drive investments into African energy projects, and facilitate new partnerships and networking opportunities for the African upstream. Hosted for the first time in the Mena region, the event will connect the African oil and gas industry to the rest of the world under the theme ‘Succeeding in a Changed Market’ – providing attendees with business intelligence and opening-up new in-market business opportunities.
Uniting under the theme of ‘Succeeding in a Changed Market’, esteemed speakers will tackle topics on how the industry has responded to the evolving market landscape, identify opportunities for new players and high-value assets on the horizon, and analyse the macro-effects of the global energy transition on the African upstream.
As the upstream moves to embrace digital solutions more than ever before to alleviate the impact of the pandemic on operations, Africa Oil Week will spotlight the critical role innovation and technology plays in Africa’s future energy landscape, specifically examining how it can be utilised to safeguard and strengthen Africa’s upstream portfolios from future disruption. An expert panel including representatives from Maersk Drilling, Baker Hughes and Schlumberger will unpack this during a high-level conference session.
Supporting Food Security in Sub-Saharan Africa amid the COVID-19 Pandemic and Climate Change (IMF)
Sub-Saharan Africa has made substantial economic and social progress over the past two decades. Yet, the region is facing difficult challenges, including vulnerability to climate change. Indeed, we have seen a marked increase in the frequency and intensity of natural disasters, which are driving the desertification of the Sahel, for example, and threatening growth, employment opportunities and food security. Climate change can also act as a multiplier for conflict and fragility in the region.
The COVID-19 pandemic has also disrupted production, imports and supply chains of food, resulting in volatile and rising food prices. And that, along with falling incomes from the pandemic, has led to an increase in the number of undernourished in the region by 20 percent in one year to reach 264 million in 2020.
UN-backed report reveals rising climate change risk across Africa (UN News)
The State of the Climate in Africa 2020 report highlights the continent’s disproportionate vulnerability but also reveals how investing in climate adaptation, early warning systems, and weather and climate services, can pay off.
Petteri Taalas, the WMO Secretary-General, said the climate indicators in Africa during 2020 were characterized by continued warming temperatures, accelerating sea-level rise, extreme weather, and climate events - such as floods, landslides and droughts. “The rapid shrinking of the last remaining glaciers in eastern Africa, which are expected to melt entirely in the near future, signals the threat of imminent and irreversible change to the Earth system,” he warned.
Estimates reveal that by 2030, up to 118 million extremely poor people on the continent will be exposed to drought, floods and extreme heat, which will hinder progress towards poverty alleviation and growth. “In sub-Saharan Africa, climate change could further lower gross domestic product (GDP) by up to 3%, by 2050,” she said. “This presents a serious challenge for climate adaptation and resilience actions because not only are physical conditions getting worse, but also the number of people being affected is increasing.” The report estimated that the investment in climate adaptation for sub-Saharan Africa would cost between $30 to $50 billion each year over the next decade, or roughly two to three per cent of GDP. The authors said rapid implementation of African adaptation strategies will spark economic development, as well as more jobs as part of post-pandemic recovery. Pursuing the priorities of an African Union green recovery plan would also allow for sustainable recovery as well as effective climate action.
COP26: Africa’s challenges must steer the climate change conference (The Business & Financial Times)
The 26th session of the United Nations Framework Convention on Climate Change Conference of the Parties, popularly known as COP26, is happening at a time when the world has just experienced one of the warmest years on record. The year 2020 reached temperatures that were about 1.02°C warmer than average.
Africa carries the heaviest burden of the associated climate change effects, despite contributing less than 5% of the world’s greenhouse gas emissions. Industrialised countries – namely China, the US, India, Russia and Japan – top the list in the emission of greenhouse gases, especially carbon dioxide. Africa is the most vulnerable continent to the effects of climate change due to its low adaptive capacity, as a result of financial and technological limitations, and an over-reliance on rain-fed agriculture. The continent is also witnessing a higher rate of warming than the global average of 0.15°C per decade between 1951 and 2020. Given the observed global warming, it is projected that the continent will experience an increase in hot extremes and more frequent and intense rainfall extremes.
At COP26, countries will launch an adaptation goal and adopt strategies for achieving such a goal. This presents African countries with the opportunity to shape the agenda, once more. Leaders of African countries should approach the convention with a strong, unified voice, presenting their climate change concerns and needs.
Free Movement of People a Top Priority, Say West African Nations (IOM)
Free movement of people and goods, and fighting human trafficking should be top policy priorities, members of the Economic Community of West African States (ECOWAS) agreed at talks convened with the support of the International Organization for Migration (IOM), the UN Network for Migration and the African Union. Three days of consultations in Abuja this week offered the first chance for ECOWAS members to collectively assess progress in implementing the Global Compact for Migration (GCM) objectives and to decide key recommendations to be put to next year’s International Migration Review Forum.
ESA region discusses the nCEN’s role in Customs operations and intelligence sharing (WCO)
On 4 October 2021, representatives of National Customs Enforcement Network (nCEN) countries from the WCO’s East and Southern Africa (ESA) region gathered for the 6th Regional Meeting of nCEN Programme Leaders. This virtual meeting was organized and chaired by the Burundi Revenue Authority, the current ESA Regional nCEN Leader. Alongside representatives of nCEN countries, representatives of the WCO Secretariat and the Regional Intelligence Liaison Office for ESA also participated in the meeting. During the opening remarks at the start of the meeting, focusing on the role of the nCEN application in Customs operations and intelligence sharing in the context of the COVID-19 pandemic, Mr. Jean Berchmans Niyonzima, Commissioner for Investigations in the Burundi Revenue Authority, stressed that in these times of global health crisis, the role of Customs in preventing threats and non-compliant activities at borders was critical and that the use of technology was one means of achieving trade security. Mr. Niyonzima went on to say that the nCEN, through its intelligence sharing feature, would not only help mitigate risks of illicit trade but also optimize revenue collection in the ESA region.
Mistrust, cries of unfairness as states fall out over EAC job vacancies (The East African)
A dispute over the distribution of jobs in the organs of the East African Community, which has simmered for close to a decade, came to a head last week when the bloc’s legislative assembly blocked the hiring of House clerks, citing irregularities in the recruitment process. Cat-and-mouse games unfolded in the East African Legislative Assembly (Eala) in Arusha over the hiring of a clerk and a deputy, signalling festering discontent with the staffing ratios in the Community. Ugandan legislators, led by Denis Namara, have been at the forefront of the quest for equity in the recruitment of staff, dramatically staging walkouts that made Speaker Martin Ngoga suspend sittings on Tuesday through to Thursday due to lack of quorum.
UAE and Africa set to usher in new phase of economic growth (Gulf News)
The UAE and Dubai seek to serve as a bridge between markets to enable countries across the world access new opportunities, and platforms such as the sixth Global Business Forum Africa are the enablers of such opportunities, Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, has said. The comments from Shaikh Hamdan came as he attended GBF Africa 2021 at the Dubai Exhibition Centre at Expo 2020 Dubai. “Against the backdrop of a rapidly evolving global environment, the UAE and Africa have a unique opportunity to usher in a new phase of growth in their economic relationship. The sixth Global Business Forum provides the ideal platform for both sides to explore ways to tap fresh synergies and add new dimensions to their ties,” Shaikh Hamdan said.
International
Free flow of trade crucial for post-Covid economic recovery, experts say (Hellenic Shipping News Worldwide)
Trade has played a key role in the global economic recovery from the Covid-19 pandemic, but the rebound is “uneven” as richer countries that are better integrated with global markets and supply chains recover quicker than developing and undeveloped states, industry experts said on Friday.
During the pandemic, firms outside the global value chain suffered more from the cancellation of contracts, the World Bank’s Managing Director for Development Policy and Partnerships Mari Pangestu said in an online panel. It comes as little surprise that poorer countries hit hard by the pandemic are the ones struggling to get back on their feet. Those with little-to-no resources have little to trade and no money to buy goods and services.
“Global economic integration matters … policymakers should ensure that their markets are integrated with the global chains,” Ms Pangestu said. “This is also about domestic reforms … keeping openness in place on the trade and investment side and entering into deeper and more ambitious trade agreements.”
CEOs to World Leaders: Now is the Time for Trade Reform (WEF)
Nearly 30 CEOs and Chairpersons from some of the world’s biggest companies called on governments to work through geopolitical tensions, re-engage on trade reform and refrain from protectionism. This call to action comes at a time of significant geopolitical tensions and challenging economic dynamics. Uniquely, it brings together a diverse group of companies representing 17 countries across all five continents. The signatories are from the following 12 sectors: retail, e-commerce, food and beverage, payments, financial sector, investors, telecommunications, chemicals, logistics, supply chain and transport, professional services, energy and commodities. Convened by the World Economic Forum’s Trade and Investment community, business leaders called for higher global ambition for trade cooperation, including at the upcoming WTO Ministerial Meeting. “Business leaders are sending clear signals to policy makers that change is both necessary and achievable,” said Borge Brende, President, World Economic Forum. “In this Trade for Tomorrow statement, leaders highlight the potential of trade and investment for recovery and development. They call for quick progress on health, digital, investment and environmental matters, and note that business can help with implementing reforms.”
Logistics services critical for trade and economic development — DDG González (WTO)
The critical role of logistics services in trade and economic development can never be overemphasized. As trade is more and more organized through value chains, be it global or regional, logistics services are the “glue” that holds value chains together. Numerous studies have shown that a country’s competitiveness highly correlates with its logistics performance which relies on not only infrastructure, so-called hardware, but also software, namely the ability to supply cost-effective logistics services and the enabling environment. This is particularly important for developing countries as their logistics services are usually underperforming and LDCs suffer most from logistics constraints. Developing countries urgently need to improve their logistics capacity in the pursuit of development goals.
The COVID-19 pandemic has highlighted again that logistics is the lifeblood of economy. It was international logistics operations from transport, storage, distribution to delivery that kept smooth cross-border flows of medical supplies, food and other essential goods when most of the world was in lockdown during the pandemic. Thanks to the efforts of logistics providers, now everyday millions of COVID vaccines are transported and delivered to all over the world to save people’s lives. No need to mention that the production of vaccines also relies on the transportation and delivery of inputs sourced globally.
India to discuss proposals for vaccine patent waiver, global trade issues during WTO chief’s visit (Moneycontrol)
India will be laying out its final proposals on multiple global trade issues, including vaccine patent waiver, when World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala visits the country on October 20. Iweala’s three-day trip to India assumes major significance as all WTO member-nations will converge in November-end for the global body’s biennial ministerial conference (MC). The summit usually sets the global trade legislation for years to come and the 12th MC is set to see major tussles in a number of areas. The main fight will be over the suspension of global intellectual property rights of COVID-19 vaccine manufacturers, a proposal by India which has seen a persistent deadlock. “Legacy issues, such as the proposed global e-commerce rules, permanent stockholding of foodgrains, fishing rights and subsidies for agri-exporters, have again gained prominence on the global stage,” a senior official said.
E-commerce negotiations: Co-convenors urge members to intensify efforts ahead of MC12 (WTO)
The co-convenors of the negotiations on e-commerce have urged participating members to intensity their efforts and to make further progress ahead of the WTO 12th Ministerial Conference (MC12) starting in late November. In the current global context and with the COVID-19 pandemic
Global investment flows rebound in first half of 2021, recovery highly uneven (UNCTAD)
Global foreign direct investment (FDI) flows in the first half of 2021 reached an estimated $852 billion, showing stronger than expected rebound momentum, according to UNCTAD’s Investment Trends Monitor released on 18 October. The increase in the first two quarters recovered more than 70% of the loss induced by the COVID-19 pandemic in 2020. “The rapid FDI recovery and the optimistic outlook mask the growing divergence in FDI flows between developed and developing economies, as well as the lag in a broad-based recovery of the greenfield investment in productive capacity. Furthermore, uncertainties remain abundant,” said James Zhan, UNCTAD’s director of investment and enterprise.
Communiqué from the Small States Forum October 2021 (World Bank)
The COVID-19 pandemic continues to have a disproportionate economic and social impact on small economies. Following an average contraction in small states of more than 8% in 2020, recovery is expected to remain sluggish, with most small states not reaching their pre-pandemic per capita income levels before 2024 at the earliest. With global travel still 60% below pre-pandemic levels, the recovery is expected to be particularly weak in tourism-dependent economies. The pandemic will have a lasting legacy in small states, with potential output expected to remain below pre-pandemic projections for the next decade.
Small states entered COVID-19 with higher debt levels than other EMDEs, due to small domestic economies and high exposure to climate-induced disasters. Responding to the crisis substantially exacerbated their debt burdens and acutely eroded the fiscal space to invest in the recovery. We welcome the Debt Service Suspension Initiative that provided temporary fiscal space to 15 members of our Forum. This further needs to be decisively and comprehensively supported by long-term and durable solutions and sustained focus and commitment from the international community. To this end, we ask the World Bank and the IMF to provide the necessary technical support to address debt vulnerabilities in small states, on a country-by-country basis, and for the international community to engage more closely with creditors to develop common approaches to addressing debt sustainability.
What Does the European Green Deal Mean for Africa? (Carnegie Endowment for International Peace)
On July 14, 2021, the European Commission adopted a set of intermediate proposals to cut greenhouse gas emissions by 55 percent from 1990 levels by 2030 as part of a broader European Green Deal (EGD). The EGD is a set of long-term policy initiatives that define the European Union’s (EU) climate strategy to reach net zero emissions by 2050 and aim to make Europe the first mover in international climate policy. Toward this goal, the EGD provides a road map for a socioecological transition to a low-carbon future and the building blocks for a green economic growth strategy.
Its implications for Africa are multifaceted. Most prominently, a decline in European demand for fossil fuels alongside rising demand for cobalt, nickel, and other critical minerals for the energy transition will greatly affect global markets and, by implication, the economies of oil-dependent and mineral-rich African countries. The economy-wide effects of the EGD, however, extend beyond the energy transition. This paper identifies the implications of the EGD for African countries in seven main areas: agriculture, biodiversity, energy, critical raw materials (CRMs), circular economy, new technologies, and finance. It also recommends steps to orient the policy initiatives to Africa’s development priorities.
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National
Many challenges in expanding SA agricultural exports into Africa (The Herald)
SA’s agricultural sector is arguably one of the most vibrant on the continent. This has largely been occasioned by technological adaptation, sound knowledge, regional and overseas market access, and logistical efficiency. Hence, the importance of trade and logistics to SA’s agricultural sector cannot be over-emphasised. This is because our agricultural sector is highly export-orientated, with roughly half of the produce in value terms exported each year. However, for the sector to remain vibrant, it will have to urgently and continually expand and diversify its markets beyond the traditional ones such as the Southern African Development Community (SADC), the European Union and several in Asia. This urgent matter came up sharply in a range of engagements my colleagues and I had with agribusiness captains in the Western Cape last week.
SABS announces new local content certification scheme (Moneyweb)
A new certification scheme launched by the South African Bureau of Standards (SABS) on October 14, intends to harmonise local content and local production for producers and manufacturers, levelling the playing field and cutting out those who seek to cheat the system. The SABS – a statutory body entrusted with developing, promoting and maintaining South African National Standards (SANS) – said the Local Content Certification Scheme seeks to address the shortcomings of its predecessor, the Local Verification Scheme. “Product certification is a large portion of our quality assessment business and our ability to [provide] domestic producers with a combined product and local content certification will enhance their selling opportunities in the public and private procurement system,” SABS said in a statement. “In turn, this will strengthen the quality of goods and products bought throughout the supply chain. This will increase the demand for quality locally-produced products.”
Government Committed to Driving Growth of the Hydrogen Economy – Deputy Minister Majola (the dtic)
The Department of Trade, Industry and Competition (the dtic) has mandated the Industrial Development Corporation (IDC) to actively form partnerships with the private sector in funding opportunities to support the growth of the hydrogen economy. This is according to Deputy Minister of Trade, Industry and Competition, Mr Fikile Majola. He was addressing an online indaba held with the aim of promoting the hydrogen economy as a major opportunity for South Africa to address the challenges of developing an inclusive economy. The session took place under the theme: “Hydrogen Economy – An Opportunity for South Africa to Create an Inclusive Energy Sector with Significant Black Participation.” Majola said it was becoming clearer that the hydrogen economy is a potential “game changer” for the whole world and South Africa was well-positioned to capitalise on this rapidly developing global hydrogen economy.
“It is imperative that we promote public-private sector linkages that will be critical to the development of the entire green hydrogen value chain. These collaborative efforts are expected to accelerate the development of a sustainable and inclusive local green hydrogen economy. Government is committed to working with all stakeholders to create and advance an enabling environment for the development of this new industry as part of our re-industrialisation strategy and to become an exporter of cost effective green hydrogen,” said Majola.
He added that South Africa has an abundance of renewable energy resources, providing a significant opportunity to be a player in the global green hydrogen energy market and a leading role in the global energy transition towards a net carbon zero future.
CEMENT INDUSTRY: South Africa’s protectionist policy aimed at setting the foundations for a sector recovery (Daily Maverick)
Could the National Treasury’s decision to ban the use of imported cement for all government-funded infrastructure projects finally provide a happy ending for SA’s beleaguered cement industry?
The Treasury’s protectionist policy has been hailed as a big win for the local cement industry, which has been battling for survival since 2014 – a period in which cheap cement imports repeatedly flooded the SA market and ate into the profits of local producers. “Cheap cement imports from Pakistan, China, and Vietnam were already killing SA’s cement industry. Then the Covid-19 lockdowns arrived, which stopped construction projects. This was the final nail in the coffin for the industry,” Bryan Perrie, the CEO of industry body Cement and Concrete SA, told DM168. “There’s finally light at the end of the tunnel with the Treasury’s move.”
IMF Staff Completes Virtual Mission to Lesotho (IMF)
Lesotho has been struggling with the fallout from the pandemic and a sharp decline in revenues from the Southern African Customs Union (SACU); The authorities and the mission team made significant progress in their discussions on policies that could be supported by the IMF under a financial arrangement.
The authorities and the mission team had productive discussions on policies that could be supported by the IMF under a financial arrangement. The program under discussion would aim to support a durable post-pandemic recovery, restore fiscal sustainability, strengthen public financial management, and ensure the protection of the most vulnerable. Other key structural reforms to be implemented include strengthening governance and fostering private sector investment to spur inclusive growth and employment over the medium term.
“Lesotho has been experiencing twin economic shocks resulting from the pandemic and a decline in revenues from the Southern African Customs Union (SACU) that have proved to be highly volatile. Public expenditures have been increasing while SACU revenues were buoyant but have not adapted to their decline and the limited growth in other revenue sources. At the same time, the economy has been in recession since 2017. The resulting fiscal and external imbalances, if left unaddressed, would continue to put pressure on international reserves and lead to government payment arrears.
Covid-19 border closures hit Zimbabwe’s women traders hard (The Mail & Guardian)
For years, Zimbabwe’s female informal cross-border traders have been targeted for robbery, because they are assumed to carry suitcases of cash they use to purchase their stock in neighbouring countries.
When Covid-19 hit and borders closed, domestic incomes suffered, and with husbands and partners losing their work because of the closure of different sectors of the economy, the financial strain became an outlet for long-simmering household tensions, according to researchers. Since the emergence of the coronavirus lockdown measures, there has been a global surge of domestic and gender-based violence, raising concerns among campaigners about the enduring psychosocial effects of the pandemic that go beyond the economic.
“Women informal cross-border traders support some of the most fragile and impoverished communities, and so any threat to [them] poses a threat to the most vulnerable and least resilient,” said Fadzai Nyamande-Pangeti, International Organisation for Immigration — Zimbabwe spokesperson.
“The Covid-19 pandemic exposed already existing structural problems and the lack of social protection for women is not a new thing,” Matekaire said. The unforeseen outcomes of the pandemic may have been exacerbated by informal cross-borders traders’ lack of access to information, which could have partly protected them from the shocks of the Covid-19 outbreak, according to an analysis by the Southern Africa Trust, conducted in conjunction with the Southern Africa Cross Border Traders Association. “Small-scale border trade plays an important role in contributing to poverty reduction and food security,” the trust said, adding that, in the absence of that ability to provide for their families, a powder keg has been set off.
Africa-wide trade fair will boost Zim exports (The Sunday Mail)
THE interest to venture into the export business is fast growing in Zimbabwe, and this is a positive development. This means, in a few years, the number of exporters will grow, which, in turn, will improve export earnings. Further to NGEP, ZimTrade — the national trade development and promotion agency — is running several programmes targeted at increasing capacities of businesses led by rural communities, women and young people so that they produce competitive products for export markets.
Although improving capacities of exporters is crucial, issues of access to markets are also important, and targeting easy markets should be a top priority.
The IATF holds great potential to accelerate Zimbabwe’s implementation and achievement of both the National Development Strategy 1 (NDS1) and the United Nations’ Sustainable Development Goals (SDGs) through increased trade and the resultant increase in foreign currency generation, improved livelihoods and economic growth.
Kebs eyes more exports using better testing kits (Nation)
The Kenya National Bureau of Standards (Kebs) will scale up certification of horticulture consignments destined for Europe to shore up exports and retain this lucrative market. Managing director Bernard Njiraini says they are seeking more investment in testing kits to ensure only certified horticultural produce accesses key international markets. Farmers have been advised to adhere to the minimum residue levels, which is required under the European Union (EU) regulations especially at the planting stage to help conform to global food safety standards across the whole production value chain. “We have the capacity to check mangoes and avocados going to Europe but we need more equipment to help on these checks,” said Mr Njiraini.
The MD urged growers seeking to export agricultural goods to the European Union to ensure that their produce complies with the market requirement in order to minimise interception by authorities.
Kenya’s horticulture exports to Europe have been facing phytosanitary challenges in Europe, a move that has seen some of the produce restricted from accessing the market. This comes at a time when Kenya is preparing to resume exports of mangoes to Europe after the country placed a self-imposed ban nearly a decade ago on the back of fruit flies that was present on Kenya’s fruits, risking a ban from the EU.
Kenya, Uganda set Nov date for sugar, milk trade talks (Business Daily)
Kenya and Uganda are set to take another stab at easing trade tensions between them amid jitters on whether the two countries would find a lasting breakthrough. Officials from Kenya are scheduled to visit Uganda next month to verify claims that sugar and milk imported from the landlocked neighbour originates from third-party countries -- a claim Kampala denies. Livestock Principal Secretary Harry Kimtai said the officials have settled for a November date after the initials plan was hampered by the third wave of Covid-19 in Uganda.
Ugandan High Commissioner to Kenya and the Seychelles Hassan Wasswa Galiwango last week in Nairobi extended an invite to Kenya’s delegation. “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,” she said last week during Uganda’s Week in Nairobi.
Maize flour price crosses Sh100 on high costs of transport (Business Daily)
The price of flour has crossed a Sh100 mark on the shelves as millers blame the increase on rising cost of maize. Though the price of maize at the farm gate has dropped significantly, processors argue that the cost of transportation to Nairobi has made it expensive.
The rising prices will have an impact on inflation as food and energy are major drivers of high cost of living in the country. The Kenya National Bureau of Statistics (KNBS) report indicated that food prices rose 10.63 percent in September compared with a year ago. Mr Rajan said they have been witnessing a rising cost in price of maize in the last couple of weeks, which is now impacting on the cost of flour.
Dar Port makes yet another feat (Dailynews)
DAR ES SALAAM Port has yet again hosted a large vessel, Aquamarine ACE, carrying 3492 vehicles, signaling a continued trust in importers on the port after major expansion and improved services. This is second ship of that capacity after the port received another vessel of almost such size, the Tranquil ACE Panama, in last August. The Port Director, Elihuruma Lema, who spoke on behalf of the Director General of the Tanzania Ports Authority (TPA), Eric Hamissi, said the continued arrival of big ships resulted from improved efficiency, port expansion and marketing. “As we are today celebrating Nyerere Day, we are also celebrating victory of receiving another big ship which means a lot to port’s improved efficiency and expansion,” Mr Lema stated.
He said a good number of importers; mainly from neighbouring land-linked countries (Rwanda, Burundi, Malawi and DR Congo) have now increasingly started using the port.
Uganda Airlines to leverage on cargo for Dubai flights (The East African)
Uganda Airlines is planning to increase frequency on its Entebbe-Dubai route following impressive passenger traffic after the launch on October 7. Speaking at a launch ceremony in Dubai on October 9, the airline’s acting chief executive Jennifer Bamuturaki told The EastAfrican that they were seeking to gradually increase the frequency to at least five, from the current three times a week. “We are flying a 285-seater craft and on the first day, we flew just 80 people. The second day, we flew 220 passengers. You can only grow a route depending on the frequency you fly and the market reaction. “We will stimulate the route to about four or five times a week,” Bamuturaki said.
NPA to support digital revolution of African ports (The Sun Nigeria)
The Nigerian Ports Authority (NPA) has been working steadily to digitalise operations at all port locations in the country, towards optimal efficiency, elimination of corrupt practices and service excellence. The Acting Managing Director of the NPA, Mr Mohammed Bello-Koko, disclosed this in a statement signed by Mr Olaseni Alakija, General Manager Corporate and Strategic Communications, NPA in Lagos on Thursday.
Bello-Koko stated this when he received a delegation of the Ports Management Association of West and Central Africa (PMAWCA), led by the Association’s Secretary General, Mr Jean Marie Koffi. The PMAWCA delegation came to officially invite the acting Managing Director as a speaker at the forthcoming 41st PMAWCA Council Meeting, with the theme: “Digitised Port As A Model Of Port Efficiency”, scheduled for November in Douala, Cameroon.
UK, Nigeria Reiterate Commitment to Partner on Mutual Economic Benefits (THISDAY)
The United Kingdom Prime Minister’s Envoy to Nigeria, Helen Grant and Nigeria’s Minister of Industry Trade and Investment, Mr. Adeniyi Adebayo, held the sixth bi-annual sitting of the UK-Nigeria Economic Development Forum (EDF), reiterating commitment to a partnership based on mutual economic benefit that will increase Foreign Direct Investment (FDI) in non-oil sector in Nigeria. A statement from the British Deputy High Commission through the Press and Public Affairs Officer, Ndidiamaka Eze, stated that the agenda outlined opportunities for a wider UK-Nigeria partnership as discussions centred on the state of bilateral trade; challenges and priorities ahead; opportunities to ‘build back better’ from COVID-19; the Nigeria Government’s preparations to attend the 2021 United Nations Climate Change Conference (COP26), and plans to implement the revised Nationally Determined Contributions (NDCs).
“They welcomed the continued efforts to encourage UK trade and investment into Nigeria resulting in a number of commercial wins for UK companies, including a £10.56m deal in the healthcare sector as part of a new build hospital project, and others in the pipeline (including more than £60m of potential FDI in the renewable energy sector,” the statement said. Speaking at the meeting, Grant said that the EDF remained crucial to the UK’s efforts to address barriers to bilateral trade and investment between the two countries.
Sudanese traders divert shipments to neighbouring countries (The East African)
Sudan’s main port, which consists of six specialised ports and the largest trader of Sudan’s exports and imports, has suffered the biggest setback in more than 100 years since its establishment during the period of English rule in Sudan. Businessmen and companies that deal with Port Sudan suffered losses as a result of their global commitments, traders have begun diverting shipments to neighbouring countries after anti-government protesters forced closure of the country’s main port. Some rerouted ships and containers to other maritime routes such as “Ain Al-Sokhna” in Egypt, a modern port known for the speed of handling and trading, and cheaper than Port Sudan by more than 30 percent.
Economist Abdul Wahab Juma told The EastAfrican that “This situation has cost the Sudanese Sea Ports authority millions of dollars in fees, as reflected in the lack of revenue for the Red Sea state, whose million residents depend on the port’s incomes”. He added “On average, Port Sudan port deals with 400,000 containers in the port designated for container shipping, meaning loss of docking fees, steering services, shipping, which will have a significant impact on the local population”.
Expo 2020 Dubai
Leaders meet at Expo 2020 Dubai to discuss scaling up women-led small businesses in Africa (ICC)
The Women Traders in the AfCFTA, a partnership formed by ICC, UPS, Trade Law Centre (Tralac), and West Blue Consulting, met at Expo 2020 Dubai to support women-led SMEs in Africa. The one-day event brought together AfCFTA entrepreneurs, innovators and business leaders – both in-person and virtually – to discuss shared challenges, obstacles, and success stories. Taking place on October 16, 2021, the event offered a platform to celebrate inspirational development journeys, showcase innovative products and services, and create new network opportunities for upscaling businesses and entering new marketplaces.
“The AfCFTA is key to Africa’s post-COVID recovery and economic transformation. The Agreement addresses many non-tariff barriers, including cumbersome customs processes and regulations that impact women specifically,”said Trudi Hartzenberg, Executive Director, tralac. “The Protocols on Women and E-Commerce, which are still to be negotiated, are key to ensure that the AfCFTA trade governance agenda contributes meaningfully to women’s economic empowerment in a competitive digital economy. tralac, in partnership with West Blue Consulting, ICC and UPS, will continue to support Africa’s women entrepreneurs to achieve the development goals of the AfCFTA.”
AfCFTA holds key to strengthening UAE-Africa trade (Gulf News)
The new African Continental Free Trade Area (AfCFTA) is not only a symbol of the continent’s business resilience but is rapidly reshaping global as well as intra-Africa trade to deepen the longstanding relationship between Africa and Dubai, top officials told the Global Business Forum (GBF) Africa. “The United Arab Emirates and Dubai, in particular, have long played a key role in linking Africa to the wider global economy. This interconnectedness has been mutually beneficial, and we wish to continue to deepen those collaborations,” Paul Kagame, the President of Rwanda, said during his special address at the Forum on Thursday. Held under the patronage of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, GBF Africa 2021 – the sixth edition in the series – was organised by Dubai Chamber under the theme ‘Transformation Through Trade’. The two-day event was hosted in partnership with Expo 2020 Dubai. In a recorded video message, Kagame stressed that while the global economy was slowly getting back on its feet, it would never revert to its former model. “No country or continent has been spared the damaging effects of the COVID-19 pandemic. Africa is no exception,” he said.
“Some of the changes will be profound and lasting. The crisis in international shipping and transportation is already generating new thinking. Manufacturing and supply chains will need to become more resilient to more local and more technologically advanced,” he added.
According to Wamkele Mene, the first Secretary General of the AfCFTA, the agreement has the potential to transform the entire global economy in the wake of the pandemic. “We have done very well despite the pandemic as we approach the first anniversary of the AfCFTA. There are very positive signals from the agreement, showing the way forward for Africa to recover from the pandemic,” Mene told the Forum in a virtual address.
Secretary General Chileshe Kapwepwe was one of the speakers at the Global Business Forum – Africa. Along with the Group Managing Director and Chief Executive of the Trade and Development Bank, Mr Admassu Tadesse, the two were among three discussants on the subject: Transformation Through Trade which is anchored on three pillars: RESET – RESTORE – RENEW. The Forum was part of the activities at the ongoing Expo 2020 Dubai. Their topic focused on the RESET pillar which explores policy and regulatory reforms and assess the economic implications of the COVID-19 pandemic for the region. It further explores how the continent’s countries can work together to deliver on the promise of the AfCFTA and enable sustainable growth. Madam Kapwepwe told the audience that the role of digital technologies in mitigating the effects of the pandemic had proved critical by providing alternative methods of doing business in an unprecedented environment.
She cited the COMESA Digital Free Trade Area as one of the initiatives that aims at transforming the business processes that impede the attainment of the desired levels of efficiency and reducing the cost of doing business.
Dubai South signs deal with Ghana investment centre (Trade Arabia)
Dubai South, the largest single-urban master development focusing on aviation, logistics and real estate, has signed a MoU with Ghana Investment Promotion Center (GIPC), the foremost investment attraction and promotion agency under the presidential office of the African nation, to promote all-round economic cooperation, bilateral trade and investment.
Through this agreement, the two parties aim to create an attractive environment for SMEs and encourage the exchange of trade missions with all-rounded preparation, including assistance with business programs, facilitating corporate networks and information exchange between the two authorities, stated Mohsen Ahmad, CEO of Dubai South, Logistics District
“The agreement comes on the heels of the mega event, Expo 2020 Dubai, which seeks to pave the way for resilient global economy and enable robust business connectivity,” he stated.
Ghana, has officially become the “Commercial and Trade Hub of Africa, as it hosts the Secretariat of the African Continental Free Trade Area - hailed as the world’s largest free trade bloc. The country ranks among the top in West Africa for ease of doing business, offering investors a conducive business environment bolstered by solid economic fundamentals, dynamic policies, and political stability.”
Africa to become world’s digital talent outsource powerhouse (Khaleej Times)
Africa is set to power the world’s digital transformation with its huge young talent base powering an offshore services export revolution with Egypt in pole position and Ghana set to lead on bridging the digital gender divide, day one Gitex Global Leaders Vision Summit in Dubai heard today.
Dr Amr S. Talaat, Egypt’s Minister of Communications and IT said the vision was already producing results with 3,000 software engineers now exporting services to Europe’s automotive industry with more to come. He told the audience that 2,500 electronic engineers were now working in government design hubs which are collaborating with 50 companies using the hub labs as talent incubators. “By 2030 Egypt will be a digital services export centre backed by available talent,” he said.
Al Olama said: “But we need to answer some questions. Questions of ethics, privacy, the distribution of this technology so everyone has access to it. Cities will benefit the most from AI, but it shouldn’t just be cities, it needs to be everybody. People in rural areas, people living in suburbs. Everyone should have access to this new technology if we are going to improve lives.”
Africa
Africa's economic trade-off (IPS Journal)
Africa’s marginalisation in world affairs is a familiar observation, one most evident when looking at statistics on world trade. Since 2005, the share of the continent in global trade has stagnated at 3 per cent according to the African Union. The decline in Africa’s global trade share is not the only negative consequence of a trade policy regime that has gone wrong. The continent’s role as the ‘hewers of wood and drawers of water’ has consolidated in the last three decades of non-strategic movement from close economies to open ones. Raw materials and commodities dominate exports more than ever. Basic manufactured goods – including those that the continent once used to produce at home – are now imported. The collapse of domestic production generated pernicious joblessness and sustained high levels of poverty.
Unlocking the potential of Africa’s free trade area for rural women (FAO)
The Food and Agriculture Organization of the United Nations (FAO) Regional Office for Africa has launched a new brief that advocates for seizing the opportunities of the African Continental Free Trade Area (AfCFTA) for the economic empowerment of women in agriculture. The publication is launched today to coincide with the International Day for Rural Women which is celebrated every year on 15 October to honour women and girls living in rural areas. The AfCFTA holds the potential to contribute significantly to eliminating poverty, creating jobs, and improving food security. However, the new publication Seizing the opportunities of the African Continental Free Trade Area for the economic empowerment of women in agriculture warns that the AfCFTA could exacerbate existing gender disparities and discrimination and worsen the condition of women engaged in trade and agriculture if women’s inclusion is not prioritized.
The publication makes recommendations relevant to stakeholders across the trade sector, including: strategic partnerships to develop innovative solutions and policy recommendations to ensure that the implementation of the AfCFTA agreement will provide opportunities that benefit women; build the capacity of women and women’s organizations so that they are involved in Africa’s trade environment and understand what the AfCFTA agreement entails, including its opportunities and challenges; and engage the private sector to connect with women’s groups involved in agricultural value chains.
Opportunities galore for SMEs under key Africa trade deal (The Standard)
Companies can now take advantage of the AfCFTA by mastering the criteria for exports. The first is the Rules of Origin, where products must be wholly produced in Africa, significantly transformed within Africa or value-added up to 30–60 per cent within the continent. So companies wishing to export under the AfCFTA framework have to ensure the products meet the rules of origin and get a certificate.
Most countries that have signed on to AfCFTA have agreed on a gradual progression towards the zero per cent tariffs. Some will take five years and others 10, with preferential tariffs currently in place.
SMEs will be looking for affordable financing, allowing financial institutions to step in. The Africa Standards Organisation is also on the verge of harmonising standards across the continent. The sooner SMEs distribute their products into other African countries, the better placed they will be. We have seen the rush by global firms to set up in Africa so that their goods will meet the Rules of Origin criteria to trade under AfCFTA.
‘Quality freight services key to continental trade’ (The Herald)
Quality freight services will play an important role in the African Continental Free Trade Area (AfCFTA) as it link manufacturers to consumers across the continent, according to Standards Association of Zimbabwe (SAZ) director general, Dr Eve Gadzikwa. She revealed this in Harare yesterday during the ISO 9001 -2015 certification handover to Veer-Freight, a local warehousing, courier and freight forwarding company owned by Ms Lizwe Bunu.
“Freight is an important link in the entire supply chain of goods and a key sector in our Zimbabwean economy. Quality freight service providers through certification will gain a competitive advantage in the market. It links manufacturers to the consumers hence freight will play an important role in the African Continental Free Trade Area (AfCFTA).
“It is indeed an honour to hand over the ISO 9001-2015 quality management systems (QMS) to Veer-Freight Private Limited. The certification underlines the continued determination and commitment of management and staff to providing high-quality customer service,” said Dr Gadzikwa.
Africa free-trade agreement highlights FX disparities (Euromoney)
Since the start of this year, those countries whose parliaments ratified the African Continental Free Trade Area (AfCFTA) agreement and deposited a schedule of tariffs under which 90% of goods and services are traded freely have been permitted to trade under the rules of the agreement.
But as anyone who has followed the fallout from the UK’s exit from the European Union will know, there is rarely consensus on the value of free-trade agreements. In addition, research published by law firm Baker McKenzie and economic forecasting specialist Oxford Economics acknowledged that the agreement would unlock ‘uneven’ growth opportunities on the African continent. The Brookings Institution published a blog earlier this year by two World Bank economists that described the mix of exchange-rate regimes across sub-regional markets as an impediment to free trade in much of Africa, resulting in substantial misalignments and growth disparities.
SADC countries must position natural resources for the purposes of fighting poverty (iAfrica)
The Covid-19 pandemic and the climate crisis are reversing decades of progress in the fight against poverty and inequality in Africa. They are both devastating people’s livelihoods. According to the African Development Bank, 250 million Africans already suffer from hunger, 333 million face severe food insecurity, and Africa’s yearly food import is nearly US$4 billion. As of 2021, 490 million people on the continent are living in extreme poverty, making up approximately 36 per cent of Africa’s total population. The longer we take to find solutions to climate change and Covid-19, the deeper the poverty and wider the inequality gap.
Africa is blessed with abundant natural and human resources. These resource could be used to kick-start the development process, but there is a fundamental policy problem in that most African governments focus on monetary policy when they should be focusing on industrial policy. Through industrialisation, Africa’s natural resources could be a base on which to transform our countries into developed nations. As the world prepares to commemorate the International Day for the Eradication of Poverty (17 October 2021), Africa must move decisively to address the paradox of being resource-rich, but with an extremely poor population. Without this fundamental change in attitude, it is practically impossible for the continent to attain the targets of the United Nation’s Sustainable Development Goals, particularly Goal 1 of Eradicating Poverty by 2030.
Understanding the Industrial Development and Market Integration Pillar of RISDP 2020-2030 (SADC)
The transformation and development of the Southern African Development Community (SADC) economy rides on a strong industrialised and integrated Region in which intra-regional trade increases while the markets of the 16 SADC Member States are strongly interlinked. In this regard, Pillar I of the Regional Indicative Strategic Development Plan (RISDP) 2020-2030 on Industrial Development and Market Integration is directed towards realising an industrialised regional economy that utilises its natural resources sustainably. Industrial development focusing on the priority sectors of agro-processing, mineral beneficiation and pharmaceuticals is prioritised, alongside enhancing regional technological capability and capacity through science, technology and innovation. As part of the industrialisation agenda, SADC has begun the process of identifying potential value chains in the Region, which have a specific focus on how individual and regional strengths can be leveraged for optimal benefits from both regional and global value chains.
To encourage the creation of regional value chains and participation in global processes, SADC has identified six priority areas where the value chains are being established. These are in the areas of agro-processing, minerals beneficiation, pharmaceuticals, consumer goods, capital goods, and services.
Opening up the skies the only way to save southern Africa’s airlines - new industry body CEO (News24)
The aviation sector is facing the most devastating crisis since World War 2 – and the most likely route to helping southern Africa’s regional airline industry survive is opening up the skies. This is according to Aaron Munetsi, new CEO of the Airlines Association of Southern Africa (AASA).
AASA’s airline members represent about 90% of all carriers based in the Southern Africa Development Community (SADC). Its associate members include airport operators, air navigation, commercial airliner and engine manufacturers, banks and fuel companies.
Munetsi believes the biggest opportunity for aviation in southern Africa is intra-regional air service connectivity. He says this is imperative for the SADC’s overall economic recovery and future growth – having a commercially sustainable air transport industry that can connect and carry people and products between the region’s markets and beyond. AASA is advocating for close coordination and cooperation between governments and industry - regardless of who owns the entities involved. Munetsi says a key challenge is that while demand is slowly returning, there is little pricing elasticity in southern Africa’s airline market, which means airlines have to walk a tightrope in a bid to grow market share, cover costs and eke out a slender margin.
The 27th Meeting of the Inter-Governmental Committee of Senior Officials and Experts (ICSOE) of Southern Africa was officially opened by the Minister of Finance of the Repubic of Malawi, Honourale Felix Mlusu, who called on member States to develop fiscal measures such as broadening the tax base that will help them to sustain debt. This will allow the Development Partners to supplement the member States’ budgets. Currently, member States are implementing budgets with large fiscal deficits averaging over 10 percent of Gross Domestic Product (GDP), to fight the pandemic and sustain aggregate demand. Further, the pandemic has impacted debt levels through widening fiscal deficits as revenues shrink due to disruptions of economic activity as well as contraction of export receipts. Therefore, to build back better from this pandemic, He urged that, “the central dimension is the need to develop a people-centered recovery plan that focuses on well-being, improved inclusiveness, and reduced inequality. This calls for an inclusive and sustainable growth model that promotes resilience to external shocks, reduces poverty and inequality on a larger scale, and makes decent job creation a priority to absorb Southern Africa’s youth population”
East African states entangled in lenders’ debt relief fiasco (The East African)
East African countries are facing more pressure to service their loans after the world’s richest nations executed a botched debt relief plan that has pushed over half of the world’s poorest countries in external debt distress. The Debt Service Suspension Initiative (DSSI) by the world’s 20 wealthiest economies commonly referred to as the ‘G20’ has not helped poor countries ward off the devastating effects of the Covid-19 pandemic as foreign creditors, particularly banks and pension funds, still demanded to be repaid their loans. Research by UK-based Jubilee Debt Campaign, a coalition of national organisations and local groups calling for the cancellation of unjust and unpayable debts of the poorest countries reveals that lower income ones which applied for debt relief ended up spending a massive $36.4 billion on external debt repayments compared to a paltry $10.9 billion, which was either suspended or cancelled.
The role of extractives in Africa’s inclusive green and resilient recovery (Africa Renewal)
Climate change presents yet another stumbling block to achieving development outcomes as floods, droughts, cyclones, and other natural hazards continue to ravage Africa, reversing the gains made over decades. For Africa that is already reeling in poverty, debt, crumbling health systems and a myriad of other problems, recovery from the dual crises of COVID-19 and climate change will prove to be an insurmountable task. As is the case for Africa, industrialization, increased urbanization, and population growth are driving a sustained demand for minerals, metals and coal globally. According to the UN, the number of people living in cities will increase from 4.2 billion currently to 7.3 billion by the end of the century. It is projected that Africa will have the world’s fastest urbanization rate by 2050, but perhaps the greatest demand for minerals is now driven by the quest for a green recovery. As we reboot our economies shattered by the pandemic it is important to adopt an economic development model that lessens environmental, climate and disaster risks and one where social and economic benefits trickle down to those at the bottom of the pyramid, the so called “inclusive, green and resilient recovery”.
Africa begins to emerge as car industry hub (DW)
Morocco is an emerging automotive manufacturing hub, while South Africa has a history of car making. But multinational vehicle manufacturers are also setting up production plants in Angola, Ethiopia, Ghana, Kenya, Namibia, Nigeria and Rwanda, and locally owned African producers are starting out on this road less traveled. Africa has more than a billion people, 17% of the world’s population, but accounts for only 1% of cars sold worldwide, compared with China’s 30%, Europe’s 22% and North America’s 17%, according to the Paris-based International Organization of Motor Vehicle Manufacturers (OICA). Africa has on average 44 vehicles per 1,000 people, compared with the global average of 180 and 800 in the United States, according to consulting firm McKinsey & Company.
In 2018, Morocco overtook South Africa as the biggest African exporter of passenger cars with exports in 2019 at $10 billion (€8.5 billion). The two countries mainly make cars for foreign markets, but also have relatively large domestic markets. VW, Mercedes-Benz owner Daimler and BMW are among the biggest car companies in Africa, making up over 90% of all passenger cars produced and a third of the cars sold in South Africa in 2019. Meanwhile, about 80% of the 400,000 cars produced in Morocco are sold to Europe, with France, Spain, Germany and Italy the main destinations. Perhaps the main reasons Morocco has been a success story are its location close to European markets and the free trade agreements it has signed with Europe, the US, Turkey, the United Arab Emirates and elsewhere. Locally based suppliers and staff and supplies are also important.
China, Africa and the 3 years since Xi promised to rebalance trade (South China Morning Post)
When dozens of African leaders gathered in Beijing three years ago, Chinese President Xi Jinping promised change. To help rebalance the lopsided trade relationship, Xi said China would encourage Chinese companies to invest in Africa, upgrade economic zones on the continent and increase imports of African non-resource products.
Xi also pledged US$60 billion to African countries in the form of loans and aid as well as investment for three years. The various efforts were meant to expand Africa’s exports away from commodities and diversify China’s interests in the continent.
International
How the world stays open for business (Financial Times)
For generations after the second world war, it was a safe assumption that globalisation would continue unabated. The opening of economies, technological advances, cultural exchange and political engagement ushered in one of the most expansive periods of global interconnectedness in history. Despite recent gloomy warnings, there is scant evidence that this trend will reverse. Data from the DHL Global Connectedness Index (GCI), produced by NYU Stern’s DHL Initiative on Globalization, indicate that the movement of goods, services, capital, information and people across borders has grown steadily since the 1940s and by more than a quarter this century. Given the disruption of the coronavirus pandemic and rising nationalist and populist movements around the world, many have opined about the imminent rise of autarky and the end of globalisation as we know it. But we have yet to see a turning point. Despite a slowdown after the 2008-09 financial crisis and a brief sharp drop in the aftermath of the pandemic, the GCI and other indexes point to a rebound in globalisation’s flows. The volume of world trade in goods is 5 per cent above pre-pandemic levels, and most other flows are recovering swiftly, apart from movements of people, muted by travel restrictions.
Trade agreements and trade resilience during COVID-19 pandemic (UNCTAD)
This paper considers whether trade in regional trade agreements has shown more resilience during the COVID-19 downturn. Using an econometric approach where a set of fixed effect controls for countries’ specific characteristics, idiosyncratic shocks and policy responses, this paper finds that trade within trade agreements was relatively more resilient against the global trade collapse of 2020. The analysis also finds that the level of integration matters. Deep regional trade agreements have provided relatively better stability against the global shock. Importantly, the results show some heterogeneity across developing and developed countries as well as across the developing countries’ regions.
Members pursue convergence for an IP COVID-19 response (WTO)
Members appreciated the opportunities provided by recent small group and bilateral meetings to discuss issues related to the scope and implementation of the revised TRIPS waiver proposal first put forward by South Africa and India as well as the proposal for a draft General Council Declaration on the TRIPS Agreement and Public Health in the circumstances of a pandemic from the European Union, particularly with regards the use of current TRIPS compulsory licensing provisions.
Co-sponsors of the TRIPS waiver proposal reiterated that this initiative should be an integral part of any successful MC12 outcome and urged members to move beyond the binary approach between the two proposals on the table and engage constructively to secure consensus. Members also underlined the importance of aligning the facilitation process under Ambassador David Walker of New Zealand and the work by the TRIPS Council chair, so that a comprehensive package on trade and health leading to a multilateral and horizontal response to the COVID-19 pandemic can be achieved.
World Trade Organization General Council, October 2021: UK statements (GOV.UK)
The United Kingdom is a strong supporter of the Moratorium on imposing customs duties on electronic transmissions and supports the position that it should be made permanent. The increasing uncertainty on the moratorium being extended at MC12 has resulted in an uptick of concerns from stakeholders. We therefore call on members to productively engage in discussions on extending the moratorium at MC12. Thank you. The UK remains alive to the challenges Least Developed Countries face to their graduation efforts and remains committed to working with LDCs to ensure they have the tools necessary to integrate into the rules-based international trading system. The UK believes that graduation from LDC status is a positive development and that further integration into the multilateral trading system through taking on increasing commitments helps developing countries improve their domestic economies. Like other members, we would therefore like to see more evidence of why the proposed blanket 12-year period of continued access to LDC provisions is necessary.
WTO DG to meet Sitharaman, Goyal to discuss fate of Ministerial Conference (BusinessLine)
WTO Director General Ngozi Okonjo-Iweala is scheduled to meet top Indian Ministers, including Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal, later this week in New Delhi to gain support for a successful 12th WTO Ministerial Conference (MC 12) next month. The WTO is hopeful of reaching agreements on curbing harmful fisheries subsidies and pruning domestic farm subsidies at the MC 12 in Geneva during November 30-December 3; but India wants to provide consent only if the pacts are balanced and developing country sensitivities are recognised, an official tracking the matter told BusinessLine. “The fact that the WTO DG is visiting India before the WTO MC 12 shows the important position India holds in the ongoing negotiations, especially as a champion of interests of developing countries and LDCs. In the on-going negotiations in Geneva, India has put forward some proposals to protect the livelihoods of poorer nations that urge rich members to end their harmful fisheries and farm subsidies. Indian Ministers will ask the DG to ensure that the proposals are given due consideration,” the official said.
The Minister of Trade, Industry and Competition, Mr Ebrahim Patel, yesterday called for a global partnership to expand production of Covid-19 health supplies, establish a more sustainable and balanced global fishing rights regime, and reform the World Trade Organisation (WTO) to underpin industrialisation and development. The call was made at the G20 Trade and Investment Ministerial Meeting in Sorrento, Italy. Addressing the meeting, Minister Patel highlighted the importance of African industrialisation and development in ensuring that “shared prosperity moves from slogan to reality”. He proposed a package of measures to address the challenges with supply of Covid-19 vaccines across many developing countries.
“There are five practical steps that can assist developing countries: i) a temporary Trade-Related Aspects of Intellectual Property Rights (TRIPS) waiver covering Covid vaccines and essential diagnostics and therapeutics; ii) diversifying production locations and scaling up production capacity and access on the African continent and across the world; iii) protocols covering transparency, equity in vaccine supply contracts and pricing; iv) a meaningful commitment to keep supply chains open; and v) a forward-looking TRIPS provision to address future pandemics by providing automatic rights of use that obviates the need for special arrangements and waivers,” said Minister Patel.
Ensuring a Strong Recovery for Developing Countries (World Bank)
The global economy is experiencing an uneven recovery, with the risk that it will worsen inequality and leave low- and middle-income countries behind. The path of the COVID-19 pandemic remains uncertain, with obstacles to vaccination in many countries. Developing economies face challenges that could slow their recovery for years to come. To help, the World Bank Group has mounted the largest crisis response in its history, and it is uniquely positioned to help ensure that all countries can participate in a green, resilient, and inclusive return to stability and growth.
These were key messages from the Development Committee, a ministerial-level forum that represents 189 member countries of the World Bank Group and the International Monetary Fund, in a communiqué issued at the institutions’ Annual Meetings. The committee noted that the pandemic has compounded long-standing development challenges; low- and middle-income countries face acute vulnerabilities and need stronger policies, institutions, and resources to bolster resilience.
UN must work to enhance support for South-South cooperation: India at UNGA (Sify News)
Speaking at the UN General Assembly (UNGA), India’s First Secretary Sneha Dubey said that it is important that development activities revolve around national ownership and leadership, and give due consideration to national development priorities. “The UN system must focus on those tasks it is uniquely qualified to deliver. And these should be supported with adequate and predictable volume of flexible resources,” she said. Stressing on the need to enhance support for South-South cooperation, the Indian diplomat said the UN must ensure that it must ensure that resources meant for core development programmes are not re-purposed.” UN Development System needs to amplify its impact while working to enhance support for South-South cooperation. If we are to be on track to achieve 2030 Agenda, it must be ensured that resources meant for core development programmes are not re-purposed. If so, they need to be brought back on track,” she said.
Communiqué of the Forty-Fourth Meeting of the IMFC (IMF)
The global economic recovery continues. But divergences between economies persist, reflecting stark differences in vaccine access and policy support. The emergence of virus variants has increased uncertainty, and risks to the recovery are tilted to the downside. The crisis is exacerbating poverty and inequalities, while climate change and other shared challenges are becoming more pressing and require our urgent attention.
We will work together to accelerate transformational reforms to help build a more resilient and sustainable global economy. We look forward to the outcomes of COP26 and commit strongly to further accelerate climate action in line with the Paris Agreement, taking into account country specific factors. In this context, we will utilize policy mixes based on all effective tools, ranging from fiscal, market, and regulatory actions, including efficient policy instruments to reduce greenhouse gas emissions, while protecting the most vulnerable. We will also collaborate to unlock the potential of the digital economy aiming at benefits reaching all countries, while managing associated risks. We will implement a more robust international tax architecture. We reaffirm our commitments on exchange rates, excessive global imbalances, and governance, and our statement on the rules-based trading system, as made in April 2021.
Low-Income Country Debt Rises to Record $860 Billion in 2020 (Modern Diplomacy)
Governments around the world responded to the COVID-19 pandemic with massive fiscal, monetary, and financial stimulus packages. While these measures were aimed at addressing the health emergency, cushioning the impact of the pandemic on the poor and vulnerable and putting countries on a path to recovery, the resulting debt burden of the world’s low-income countries rose 12% to a record $860 billion in 2020, according to a new World Bank report.
Even prior to the pandemic, many low- and middle-income countries were in a vulnerable position, with slowing economic growth and public and external debt at elevated levels. External debt stocks of low- and middle-income countries combined rose 5.3% in 2020 to $8.7 trillion.
New report reveals how infrastructure defines our climate (UN Environment)
A new report, published ahead of the 2021 United Nations Climate Change Conference (COP26) has called for a radical change in how governments plan, deliver and manage infrastructure - emphasising the often-overlooked role infrastructure plays in combating climate change, mitigation, and adaptation efforts. The new report, Infrastructure for climate action, is co-published by UNOPS, the UN Environment Programme (UNEP) and the University of Oxford. The research looks in detail at the influence of infrastructure on climate action across energy, transport, water, solid waste, digital communications and buildings sectors. The findings highlight that infrastructure is responsible for 79 per cent of all greenhouse gas emissions, as well as 88 per cent of all adaptation costs and therefore the sector is centrally important to achieving the Paris Agreement and the Sustainable Development Goals.
The report calls on governments to treat infrastructure as a priority sector for climate action. It also calls for unified planning to tackle emissions from infrastructure.
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National
New high-capacity railroad planned for South Africa (BusinessTech)
The Department of Trade, Industry and Competition (DTIC) plans to build a new rail corridor between Gauteng and the Eastern Cape to help reduce congestion at Durban’s port. The corridor is specifically aimed at the country’s vehicle manufacturers, and boosting the Tshwane Automotive Special Economic Zone (TASEZ), says DTIC deputy minister Fikile Majola. “We will now get into another project, which is the development of the High Capacity Rail Corridor between Silverton and Gqeberha in the Eastern Cape. We will build rail lines working with Transnet and private sector partners to ensure that Ford and other manufacturers can transport their cars to reduce congestion at the Durban Port.”
Transport minister Fikile Mbalula has previously said that the government is conducting a feasibility study to introduce a high-speed rail development between Pretoria, Johannesburg and Durban. Presenting to parliament’s select committee on transport on 25 August, Mbalula said that the planned development would carry passengers and freight. He said that the government is also looking to overhaul its freight-by-rail plans, and is working on an updated rail policy for the country, currently being developed as a white paper.
South Africa needs to ramp up critical minerals exploration as world decarbonises - study (Engineering News)
The South African mining sector can remain internationally competitive and support socioeconomic development only if it drives decarbonisation and adapts to the global shift in commodity demand towards minerals used in green sectors such as renewable electricity and electric vehicles (EVs), a new study shows. However, the country will have to materially ramp up its exploration of the critical minerals required for emerging green technologies if it is to succeed in offsetting the decline in coal mining, as well as some platinum group metals (PGMs), notably palladium.
Cotton farming provides diversification options for South African canegrowers (Engineering News)
The SA Canegrowers Association will present the outcomes of a recently concluded cotton diversification pilot project to the Sugarcane Value Chain Masterplan Task Team on diversification. “These findings represent an exciting new avenue for the sugar industry to explore in pursuit of viable diversification options for canegrowers in South Africa,” the organisation states.
Domestic debt at 63.2% breaches SADC benchmark (New Era)
Namibia’s total debt as a percentage of gross domestic debt (GDP) has breached the Southern African Development Community (SADC) benchmark of 60%. At the end of June 2021, this figure stood at 63.2%. This debt level represents annual and quarterly increases of 6.9 percentage points and 1.8 percentage points, respectively. Generally, government debt as a percent of GDP is used by investors to measure a country’s ability to make future payments on its debt, thus affecting the country’s borrowing costs and government bond yields. According to the recently released quarterly bulletin by the Bank of Namibia (BoN), going forward, the total domestic debt stock is anticipated to rise to N$159.3 billion over the medium-term expenditure framework (MTEF) period, which represents a staggering 77.3% of GDP.
UAE firm to hike fruit, veg imports (The Herald)
LEADING fruit and vegetable products distributor, Ali Gholami, which is based in Dubai, United Arab Emirates (UAE), says it intends to increase the volume and value of its horticultural imports from Zimbabwe by growing the current tonnage more than 10 times over the next two years. This was said by Ali Gholami imports manager, Shihad Aboobacker, in an interview after a tour of the company by Vice President Constantino Chiwenga. He said that the Dubai head-quartered company was currently importing a few types of berries from a Zimbabwean company, but had started working on plans to expand the basket of its imports multiple times.
34 local firms to headline Africa’s trade indaba in SA (The Herald)
Zimbabwe’s trade development and promotion agency, ZimTrade, will this year lead the participation of local businesses and Government related institutions at the continent-wide trade fair scheduled for November 15-21, 2021 in Durban, South Africa. The second edition of the Intra-Africa Trade Fair (IATF) provides a marketplace for business linkages among buyers and sellers in Africa and will strengthen networks for Zimbabwe’s exporters so that they have a fair share of the African market, estimated to have more than 1,2 billion consumers. Participating companies, who include small businesses, women-led and youth-led businesses are drawn from sectors such as horticulture, processed foods, construction and engineering, agricultural inputs and implements, clothing and textile, packaging and printing, arts and crafts, and electricals.
Kenyan President Kenyatta hopes to discuss trade during meeting with U.S. President Biden (CGTN)
U.S. President Joe Biden is slated to meet Thursday with his Kenyan counterpart Uhuru Kenyatta, the first African leader invited to the White House under the current administration. The two leaders will discuss “the strong US-Kenyan bilateral relationship and the need to bring transparency and accountability to domestic and international financial systems,” the White House said ahead of the meeting.
Another issue on the agenda is trade. Former U.S. President Donald Trump’s administration had started discussions with Kenya on a free trade agreement but, according to Nairobi, Biden’s team so far hasn’t resumed the negotiations, causing much frustration. “To our American friends, I would like to say that you know you cannot start and stop a discussion with partners on the basis of one administration after another,” Kenyatta said earlier this week in New York. “Relationships are between countries and people, not between administrations.” Kenya is worried that a trade agreement that largely exempts its exports to the United States from customs duties will expire in 2025. Trump eagerly engaged in trade negotiations, Biden has so far shown restraint on that front.
Kebs to scale up horticulture export tests (Business Daily)
The Kenya National Bureau of Standards (Kebs) will scale up tests on horticulture produce destined for Europe to boost export volumes and retain this lucrative market. Managing director Bernard Njiraini said the agency would acquire more test equipment amid tightening compliance conditions in the main European Union (EU) market. “We have the capacity to check mangoes and avocados going to Europe but we need more equipment to help on these checks,” he said yesterday when he received testing equipment worth Sh500million donated by the EU. Mr Njiraini urged growers seeking to export agricultural produce to the EU to ensure that their produce complies with the market requirement to minimise interception by authorities. Kenya’s horticulture export to Europe has been facing phytosanitary challenges in the European market, a move that has seen some of the produce restricted from accessing the market. This comes at a time when Kenya is preparing to resume exports of mangoes to Europe after a self-imposed ban nearly a decade ago on the back of fruit flies, risking a ban from EU.
Air Tanzania steps up competition for KQ with new aircraft, routes (The East African)
Air Tanzania will launch direct flights to Nairobi, Bujumbura and Lubumbashi in November, stepping up competition for Kenya Airways, which also serves these routes. The national carrier recently acquired two Airbus A220-300 aircraft, raising its fleet of A220s to four, boosting its plan to introduce more international routes. The airline will operate two daily flights from its Julius Nyerere International Airport in Dar es Salaam to the Kenyan capital Nairobi starting November 26.
Air Tanzania currently operates 12 domestic routes, namely Zanzibar, Arusha, Kilimanjaro, Mwanza, Geita, Bukoba, Kigoma, Mpanda, Mbeya, Tabora, Dodoma, and Songea. On the international routes, the airline flies to Uganda, Zimbabwe, Zambia, and Comoros in the continent, and Mumbai, India, and Guangzhou, China. Kenya Airways has at least four daily flights to Dar es Salaam, five to Entebbe, four to Lusaka and at least one daily flight to Livingstone (Zambia). KQ also flies to two other cities in Zambia.
Dar commits to fully explore AFCFTA trade opportunities (Dailynews)
“Tanzania can access the market of approximately 1.2 billion people compared to the population of about 522 million EAC and SADC,” said Prof Mkumbo.
TANZANIA is committed to use all trade opportunities arising from the African Continental Free Trade Area (AfCFTA) agreement including the acquisition of new markets for agricultural products. Access to markets will stimulate production, strengthen the value chain of agricultural products involving smallholder farmers of sunflower, cotton, cloves, spices, fruits and vegetables. This was stated recently by the Minister for Industry and Trade, Prof Kitila Mkumbo (pictured) when he attended the seventh meeting of the African Council of African Trade Ministers of the AfCFTA held in a traditional and hybrid network.
Ending Ethiopia’s AGOA Eligibility Would Hurt Poor Women the Most (Foreign Policy)
U.S. President Joe Biden recently threatened to impose sanctions on Ethiopia due to the conflict in Tigray. If Washington follows through and removes preferential trade arrangements under the African Growth and Opportunity Act (AGOA), Ethiopia’s fledgling manufacturing sector could face an existential threat. While many people around the world share the U.S. government’s concern about “the peace, security, and stability of Ethiopia and the greater Horn of Africa region,” Ethiopians are dismayed by the threat of withdrawal of AGOA trade privileges. Whatever concerns one may have about the security situation in Ethiopia today, removal of AGOA eligibility would only worsen the condition of ordinary Ethiopians who have no connection to the Tigray conflict.
U.S. President Joe Biden recently threatened to impose sanctions on Ethiopia due to the conflict in Tigray. If Washington follows through and removes preferential trade arrangements under the African Growth and Opportunity Act (AGOA), Ethiopia’s fledgling manufacturing sector could face an existential threat. While many people around the world share the U.S. government’s concern about “the peace, security, and stability of Ethiopia and the greater Horn of Africa region,” Ethiopians are dismayed by the threat of withdrawal of AGOA trade privileges. Whatever concerns one may have about the security situation in Ethiopia today, removal of AGOA eligibility would only worsen the condition of ordinary Ethiopians who have no connection to the Tigray conflict.
Ethiopia prioritizes to African Agenda, Cooperation (Walter Information Centre)
The Government of Ethiopia will give priority to the successful realization of African agenda, a senior official of Ministry of Foreign Affairs said. In an exclusive interview he held with ENA in connection with the 39th Ordinary Session of the Executive Council of the African Union, Protocol Affairs Director-General Feysel Aliy stated that the necessary preparations for the Councils of African Foreign Ministers meeting have been finalized. The opportunity given to Ethiopia to host this important meeting signifies the country’s priority for African agenda, he said, adding that Ethiopia will continue its effort for the success of the continent.
Ghana poised to opening up renewable energy sector for investments - Pres (Ghanaian Times)
President Nana Addo Dankwa Akufo-Addo says the government is exploring the regional market as part of its efforts in opening up the renewable energy for investments. Consequently, he said, the country was being positioned to become a major exporter of reliable and competitive electricity in Economic Community of West Africa States (ECOWAS). In a speech read on behalf at the opening of the 7th Ghana Renewable Energy Fair in Accra yesterday, he said, these efforts would help the country rake in more foreign exchange earnings, contribute to the regional economic inclusiveness strategy and strengthen energy security and peace in the sub-region.
N300tr fabric sector fund projected for national development plan (The Nation Newspaper)
Orgarnised Private Sector (OPS) operators are to contribute N300 trillion to the N350 trillion 2021-2022 National Development Plan (NDP), Minister of State for Budget & National Planning Clem Agba said yesterday. The remaining N50 trillion will be raised the Federal Government, the minister said, adding that part of the money required for five-year plan has been built into the 2022 Appropriation Bill.
NPA moves to improve petroleum trade between Ghana, Burkina Faso (Ghanaian Times)
Dr. Mustapha Abdul-Hamid, the Chief Executive of NPA, who made these known during a courtesy call on the management of SONABHY in Ouagadougou, Burkina Faso, said “this would ensure that we tighten the processes on petroleum products.
The National Petroleum Authority (NPA) is reviewing export and transit arrangements with Societe Nationale Burkinabe d’Hydrocarbures (SONABHY) to improve petroleum trade between Ghana and Burkina Faso. SONABHY is the only institution mandated by law to import and distribute petroleum products in Burkina Faso, and the review is expected to among others strengthen the collaboration between both countries in the supply of petroleum products.
NPA Repositions Seaports For Intra-Africa Trade (Leadership)
The Nigerian Ports Authority (NPA) has said it is repositioning all seaports in the country to be efficient and reliable gateways for maritime trade as the nation prepares to tap the enormous benefits inherent in African Continental Free Trade Area (AfCFTA) Agreement. Speaking at the maiden edition of the Nigerian International Maritime Summit (NIMS) which held recently in Lagos, the acting managing director of NPA, Mohammed Bello-Koko said repositioning the seaports will optimise Nigeria’s trade interconnectivity with other countries under the AfCFTA agreement.
“Given the urgency with which the new vistas of opportunity of the African Continental Free Trade Agreement beckons, the authority is eager for actionable ideas and synergistic partnerships that the summit promises to deliver.”
“The promotion of the African Union agenda of well-interconnected and integrated networks of transport infrastructure to boost opening of markets and increase intra-regional trade, will serve to complement our ongoing aggressive efforts at attaining seamless port hinterland connectivity through
Africa
How African youth can propel the success of AfCFTA (The New Times)
Before the outbreak of Covid-19, about 55,000 small scale traders and businessmen transported and traded food and goods across the border of Rwanda and the DR Congo every day. Millions of young people across the continent are an indispensable force for the post-pandemic build-back-better of African economies. About 65 per cent of the continent’s population is under 35 years of age. They embrace new technologies and often take risks to achieve innovation.
The AfCFTA needs Africa’s youth, and youth need AfCFTA. By eliminating trade barriers and allowing the free movement of people, goods and ideas, the audacious economic initiative has the potential to create more than 14 million new jobs by 2025 in the manufacturing sector alone.
AfCFTA agriculture export efforts will have to be focused – Agbiz (IOL)
WHILE there is optimism that the African Continental Free Trade Area (AfCFTA) is set to provide further expansion opportunities for South Africa’s agricultural exports into the African continent, the benefits of this agreement for the local sector are not as much as previously thought, according to the Agricultural Business Chamber (Agbiz). Structural limitations would prevent the sector from expanding its exports into untapped markets.
Agbiz chief economist Wandile Sihlobo said the optimism came against the backdrop of Africa being the largest market for South Africa’s agricultural sector, accounting for an average 43 percent, or $4.1 billion (about R61bn) a year of all agriculture exports over the past decade.”What is clear is that South Africa’s agriculture export opportunities will not only be limited in general, but also most likely be opportunistic and focused on specific commodities or products in the short to medium term.
African aviation ministers reject imposition of vaccine passport on air travellers (Daily Sun)
African aviation ministers have unanimously rejected the planned imposition of the vaccine passport rule on air travellers, describing the proposal as discriminatory, anti-Africa and an insult to the Chicago Convention. A vaccine passport is proof that a traveller has tested negative for or been protected against certain infections like COVID-19; which can be digital, like a phone app, or physical, such as a small paper card. The African aviation ministers registered their rejection on Wednesday in Montreal, Canada, via the presentation made by Nigeria’s Aviation Minister, Mr Hadi Sirika, at the ongoing International Civil Aviation Organisation (ICAO) High-Level Conference on COVID-19. According to them, imposing a vaccine passport on the continent is unacceptable, saying it smacks of discrimination against certain population groups, particularly on the African continent, which still has a considerable number of its citizens unvaccinated.
SACU and South America to deepen trade relations (New Era)
According to SACU Executive Secretary Paulina Elago, “The SACU-MERCOSUR PTA is a limited-scope agreement that aims to promote trade between MERCOSUR and the SACU regions. It offers tariff preferences on approximately 1000 tariff lines from each side with the Margins of Preference ranging between 10% and 100%.”
The SACU chief added that the parties considered procedural and customs administrative issues relating to the implementation of the PTA, assessed progress including utilisation of the market preferences, and challenges encountered by the parties. “The parties agreed on actionable points to facilitate the effective utilisation of the agreement and to improve trade relations between two regions,” Elago stated.
Intra-COMESA export trade drops by 11% (COMESA)
The value of Intra-COMESA total exports declined by 11% from US$ 10.9 billion in 2019 to US$ 9.7 billion in 2020. The low performance was attributed to the impacts of COVID-19 pandemic and pre-existing factors such as supply-side challenges and prevalence of Non-Tariff Barriers (NTBs). According to an update presented at the ongoing 37th Meeting of the COMESA Trade and Customs Committee, 13 – 15 October 2021, the low intra-regional trade resulted from existing gaps in information availability on trading opportunities, regulatory requirements in markets and factors that inform business decisions on production of goods and trade.
Speaking at the opening of the meeting, Assistant Secretary General in charge of programmes, Dr Kipyego Cheluget observed that regional trade could flourish if Member States embraced the COMESA trade and customs facilitation instruments and policies. “If well implemented these could significantly increase intra-COMESA trade, reduce time and cost, increase regional competitiveness, create jobs and positively impact on living standards of our people,” he said. However, he noted that the implementation of regional commitments and full participation of all Member States in COMESA FTA required greater efforts and improvement.
West African nations urged to use regional value chains as means to diversify exports (WTO)
Maintaining open value chains and predictable mechanisms to support them is key to ensure access to goods and services needed for industrial development and job creation in West Africa, Mr Eloi Laourou, Senior Advisor to the WTO Director-General, said on 11 October. Speaking at a conference co-organised by the University Cheikh Anta Diop (Senegal) and Abomey Calavi University (Benin) under the auspices of the WTO Chair Programme, Mr Laourou said value chains can help West Africa foster an inclusive and resilient recovery from the COVID-19 pandemic.
The East African Business Council (EABC) Board Director Mrs. Amelie Ninganza accompanied by EABC CEO Mr. John Bosco Kalisa, paid a courtesy visit to the EAC Secretary-General, Hon. Dr. Peter Mathuki at the EAC Headquarters in Arusha and reaffirmed partnership on delivering double-digit economic growth and luring investments into the EAC bloc. In her remarks, Mrs. Amelie Ninganza commended the Secretary-General for deep goodwill on elevating partnership with the private sector as the engine for EAC economic growth and prosperity. She lauded the EABC-EAC Technical Working Group as a direct channel for the national private sector associations to present cross-border trade barriers to the EAC Secretariat for a quick resolution.
Covid-19 presented immense opportunity for African businesses: GBF Africa experts (Khaleej Times)
The Covid-19 pandemic proved to be a significant challenge for economies across the world, but it also presented an immense opportunity for strengthening trade relations and investments in new technologies, experts said at the sixth Global Business Forum (GBF) Africa in Dubai. Organised by the Dubai Chamber under the theme ‘Transformation Through Trade’, GBF Africa 2021 is being held at the Dubai Exhibition Centre at Expo 2020 Dubai under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai. Dr Constantino D.N.G. Chiwenga, vice president of the Republic of Zimbabwe, said that the pandemic was supposed to be a challenge, instead, it presented an opportunity to “restart Zimbabwe.” “We re-engineered our investment to rise to the occasion,” he asserted. “In no time, we found ourselves producing PPEs, sanitizers, medicines, and we progressed to the point where we are now producing medical oxygen for our own hospitals.”
African Continental Free Trade Area and Capital Markets in the Spotlight at GBF Africa 2021 (Al-Bawaba)
China’s Approach to Development in Africa: A Case Study of Kenya’s Standard Gauge Railway (Council on Foreign Relations)
Since the inception of the Forum on China-Africa Cooperation (FOCAC) in 2000 and the China-Africa Development Fund (CADF) in 2006, China’s interaction with African countries has grown steadily. As of 2018, FOCAC’s commitment stood at U.S. $155 billion. Indeed, China is now the top lender and key investor in Africa. Much of this investment in Africa has come via the Belt and Road Initiative (BRI). In popular Chinese discourse, BRI is understood as a flexible, inclusive project that is a major component of China’s global rise. BRI has rhetorically prioritized “policy coordination, infrastructure connectivity, trade, finance, and people-to-people relations.” BRI’s idea of inclusiveness has three components: “a community of common interest; respect for the development path of different countries; and, openness to all countries and international/regional organizations.” This paper examines sustainability, labor standards, transparency, and innovation in BRI projects, using a case study of the China-funded Standard Gauge Railway (SGR) in East Africa. For this case study, see here.
New ECA initiative supports city GDP measurement in Africa (UNECA)
A new initiative by the United Nations Economic Commission for Africa (ECA) is supporting African cities to measure their gross domestic product (GDP) – a vital economic well-being indicator. Findings from the pilot initiative for the first time show that between 2015 and 2020 Harare accounted for an average of 38 per cent of Zimbabwe’s GDP, while Accra and Yaoundé’s contributions in Ghana and Cameroon were 36 per cent and 15.7 per cent respectively. The GDP estimates will enable a more accurate understanding of the economic weight and performance of cities as well as the design of tailored measures to unlock their full potential. The figures will further help identify priority policy interventions to attract investors, improve competitiveness and strengthen productive economic sectors in cities.
International
Market Access Committee updates WTO members on COVID-19 trade-related measures (WTO)
Members welcomed the revised summary report (G/MA/W/168/Rev.1) on export restrictions and prohibitions and trade-facilitating measures relating to the COVID-19 pandemic. The report seeks to compile and summarize the relevant information on export prohibitions and restrictions that have been notified by members under the 2012 Decision on Notification Procedures for Quantitative Restrictions (QR Decision), the communications notified to the Committee with information on trade-facilitating measures as well as other measures by WTO members collected as part of the WTO’s Trade Monitoring Exercise and listed in “COVID-19: Measures affecting trade in goods”.
UNCTAD15: Building resilience key to prosperity for all in post-COVID-19 world (UNCTAD)
A high-level panel comprising leaders from governments and international organizations shone a light on fostering economic and environmental resilience, while addressing the fifth ministerial roundtable at UNCTAD’s 15th quadrennial conference (UNCTAD15) on 7 October.
“A successful post-pandemic world must be marked by greater resilience,” said Isabelle Durant, the deputy secretary-general of UNCTAD, while opening the dialogue. She noted that resilience would be more difficult to achieve in least developed countries (LDCs) and small island developing states (SIDS), which have fewer resources, less diversified economies and tighter fiscal space. According to a recent UNCTAD report, the coronavirus pandemic has pushed more than 32 million people into extreme poverty in LDCs. A third of those countries will need at least five years to regain the levels of GDP per capita they had in 2019, before the pandemic hit.
Cost of vaccine inequality could top US$9tn, trade experts warn (Global Trade Review)
Failure to improve access to Covid-19 vaccines in the developing world could cost the global economy more than US$9tn, trade experts are warning, as formal talks resume on a suspension of patent rules to ramp up production. In a statement issued after its quadrennial conference this month, the UN Conference on Trade and Development (UNCTAD) says the pandemic “will continue to undermine global and regional supply chains… unless vaccine access is boosted in developing countries given that production systems are interconnected”.
New European Vaccine Proposal Offers Limited Help To Developing Countries (HuffPost)
The Biden administration made waves in May when U.S. Trade Representative Katherine Tai announced that the U.S. would support an effort by developing countries to temporarily waive intellectual property rules forbidding generic drugmakers from mass-producing COVID-19 vaccines and treatments. Shortly thereafter though, it became clear that the European Union, led by Germany, might still block a waiver of the World Trade Organization’s agreement on trade-related aspects of intellectual property rights, or TRIPS. Global public health advocates maintain that eliminating these intellectual property barriers is a prerequisite for making costly pandemic vaccines available in a timely and affordable fashion in the developing world. Since the waiver would require unanimous approval from the 164 members of the WTO, the objections of even one country would stop it in its tracks.
Now, ahead of critical negotiations between WTO member nations, the EU is inviting some developing country negotiators to Brussels to discuss a new EU text that reaffirms existing exceptions to the TRIPS agreement, but does not waive the monopoly control over where and how much vaccine is made. Developing nations and their allies say that the latter waiver is needed to ramp up COVID-19 vaccine production and dissemination.
Debt cancellation and reparations (The Ecologist)
The G20 announced within the same month, the Debt Service Suspension Initiative which involves simply a delay of debt service due from 1 May 2020 to 31 December 2020. G20 Countries eligible to apply only include those in the list of the World Bank’s International Development Agency (IDA) and the United Nations’ list of Least Developed Countries - a total of 76 countries. The amount of debt service to be suspended if all eligible countries apply and all G20 countries participate is only about USD$11 billion.
Many campaigns and movements - south and north - are calling for deeper, wider cancelation of public debt payments for a much bigger number of countries, and for a longer period of at least four years, as an immediate response to the pandemic and the economic crisis. The campaigners also want decisive steps to be taken for more comprehensive and lasting solutions to the debt problem, including the total and unconditional cancelation of outstanding debt stock and changes in the international financial architecture and borrowing and lending policies to prevent the re-accumulation of debt.